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The Board, including all of the Trustees who are not “interested persons” (as defined in the Investment","page_number":8,"box":{"x":116,"y":258,"width":755,"height":12}},{"id":"e3107861-550a-4bea-b0a4-b22feaa2cf24","block_type":"box","text":"Company Act of 1940, as amended) of the Target Trust, determined, with respect to the Reorganization, that","page_number":8,"box":{"x":116,"y":274,"width":736,"height":11}},{"id":"5b304593-199d-4dbb-8ed0-58596e6b1a59","block_type":"box","text":"participation in the Reorganization is in the best interests of the Fund and the interests of existing shareholders of","page_number":8,"box":{"x":116,"y":289,"width":768,"height":12}},{"id":"5c03315c-0991-4cfd-b5f7-22cdc01f9b98","block_type":"box","text":"the Fund will not be diluted as a result of the Reorganization.","page_number":8,"box":{"x":116,"y":305,"width":417,"height":11}},{"id":"b0254ac0-1edb-4531-86e8-957002db077e","block_type":"box","text":"The Fund is expected to be reorganized into an ETF through the reorganization of the Fund into a newly-created","page_number":8,"box":{"x":116,"y":336,"width":761,"height":11}},{"id":"68249ad8-f3bc-43b1-98ee-7bea484c2574","block_type":"box","text":"ETF, iShares Enhanced Large Cap Growth Active ETF (the “Acquiring Fund”), which is a series of BlackRock","page_number":8,"box":{"x":116,"y":351,"width":755,"height":12}},{"id":"da8ac989-701c-40ee-85dd-44346f98d3e9","block_type":"box","text":"ETF Trust. 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The Acquiring Fund is expected to seek to pursue its investment objective while seeking to maintain a","page_number":8,"box":{"x":116,"y":429,"width":752,"height":11}},{"id":"7346c029-b51b-4da0-b0b4-3924bb02aa57","block_type":"box","text":"low tracking error to the Russell 1000","page_number":8,"box":{"x":116,"y":444,"width":255,"height":12}},{"id":"1868f9dd-3f49-46f5-ae54-6d63f723dc5d","block_type":"box","text":"®","page_number":8,"box":{"x":372,"y":443,"width":9,"height":7}},{"id":"8a55b374-3027-4b9a-a68c-8d36cb3aad5e","block_type":"box","text":"Growth Index, which may result in a lower investment risk profile than","page_number":8,"box":{"x":381,"y":444,"width":489,"height":12}},{"id":"a7b54985-5d2c-4483-bcb7-3b02bb996c5c","block_type":"box","text":"that of the Target Fund, in the view of Fund management. Fund management believes the Acquiring Fund’s","page_number":8,"box":{"x":116,"y":460,"width":731,"height":11}},{"id":"ae03d21f-bc00-4d4d-8229-ab81e1435e02","block_type":"box","text":"investment policies are better suited to implement the strategy given the increasing concentration in the strategy’s","page_number":8,"box":{"x":116,"y":475,"width":771,"height":12}},{"id":"406ef133-fc41-42bb-a76d-04f3dde5e95c","block_type":"box","text":"benchmark. The Acquiring Fund’s investment strategies will be further described in a combined prospectus/","page_number":8,"box":{"x":116,"y":491,"width":729,"height":11}},{"id":"eeba05c8-a394-4717-b38a-5366359957c4","block_type":"box","text":"proxy statement that will be included in a registration statement on Form N-14 that will be filed with the","page_number":8,"box":{"x":116,"y":506,"width":709,"height":12}},{"id":"f0b28145-974a-4271-acf5-83503cf66ff2","block_type":"box","text":"Securities and Exchange Commission (the “SEC”).","page_number":8,"box":{"x":116,"y":522,"width":349,"height":11}},{"id":"7118bb60-78b4-4151-8b99-c2baf28a1bd7","block_type":"box","text":"Following the reorganization, the Fund will be liquidated (such reorganization and liquidation, the","page_number":8,"box":{"x":116,"y":553,"width":667,"height":11}},{"id":"57f2bb43-d7c4-48d5-a062-adad717c5abe","block_type":"box","text":"“Reorganization”).","page_number":8,"box":{"x":116,"y":568,"width":131,"height":12}},{"id":"b4bcc0e8-be46-4db7-b666-dc10205c5add","block_type":"box","text":"The Reorganization is anticipated to close as of the close of trading on the New York Stock Exchange on","page_number":8,"box":{"x":116,"y":599,"width":713,"height":12}},{"id":"0dd882f0-d191-4755-884a-7c6e59e77cdc","block_type":"box","text":"May 21, 2027. The Acquiring Fund has not commenced investment operations, and it is anticipated that the","page_number":8,"box":{"x":116,"y":615,"width":729,"height":11}},{"id":"05dc5403-462c-4618-81cb-f75d44711204","block_type":"box","text":"Acquiring Fund will not have shareholders prior to the Reorganization.","page_number":8,"box":{"x":116,"y":630,"width":483,"height":12}},{"id":"affd148d-b405-4c93-b098-e376e7fb787b","block_type":"box","text":"Importantly, in order to receive shares of the Acquiring Fund as part of the Reorganization, Fund","page_number":8,"box":{"x":116,"y":661,"width":703,"height":12}},{"id":"4be882d4-d1d9-4641-a9b4-402c82dfe6d2","block_type":"box","text":"shareholders must hold their shares of the Fund through a brokerage account that can accept shares of an","page_number":8,"box":{"x":116,"y":677,"width":761,"height":11}},{"id":"d2cb2af8-707b-452b-84db-72a5f9e14e13","block_type":"box","text":"ETF (the Acquiring Fund). If Fund shareholders do not hold their shares of the Fund through an eligible","page_number":8,"box":{"x":116,"y":692,"width":752,"height":12}},{"id":"b38e3440-6c6c-4e07-a3ef-bdbed8e4187f","block_type":"box","text":"brokerage account, they will not receive shares of the Acquiring Fund as part of the Reorganization. For","page_number":8,"box":{"x":116,"y":708,"width":749,"height":11}},{"id":"2a49d40f-da77-442f-b92e-736d6f8c9a1f","block_type":"box","text":"Fund shareholders that do not currently hold their shares of the Fund through a brokerage account that","page_number":8,"box":{"x":116,"y":723,"width":748,"height":12}},{"id":"04561c38-b000-4de1-bdc9-fad9d56867d1","block_type":"box","text":"can hold shares of the Acquiring Fund, please see the Q&A that follows for additional actions that such","page_number":8,"box":{"x":116,"y":739,"width":740,"height":11}},{"id":"8531777d-a227-4ff7-ad3b-5f26425a198d","block_type":"box","text":"Fund shareholders must take to receive shares of the Acquiring Fund as part of the Reorganization. No","page_number":8,"box":{"x":116,"y":754,"width":740,"height":12}},{"id":"06a84a1b-73c7-474c-b358-00faf9fd8e3b","block_type":"box","text":"further action is required for Fund shareholders that hold shares of the Fund through a brokerage","page_number":8,"box":{"x":116,"y":770,"width":707,"height":11}},{"id":"3ddf077d-8f6e-4a5b-961e-820c7810dd42","block_type":"box","text":"account that can hold shares of the Acquiring Fund.","page_number":8,"box":{"x":116,"y":785,"width":373,"height":12}},{"id":"566c6f35-8eb9-447e-9e15-4c82b88f437a","block_type":"box","text":"BlackRock believes that the Reorganization will provide multiple benefits for investors of the Fund, including","page_number":8,"box":{"x":116,"y":816,"width":742,"height":12}},{"id":"92ebf0df-a3cf-429c-9a58-ac75faecb9fe","block_type":"box","text":"lower net expenses, additional trading flexibility, increased portfolio holdings transparency, and the potential for","page_number":8,"box":{"x":116,"y":832,"width":764,"height":11}},{"id":"a2ce8bed-1baf-4266-b70f-d9b8453aa43f","block_type":"box","text":"increased tax efficiency.","page_number":8,"box":{"x":116,"y":847,"width":168,"height":12}},{"id":"6d2074de-c386-4058-b09a-a371d0ade083","block_type":"box","text":"The Reorganization will be conducted pursuant to an Agreement and Plan of Reorganization (the “Plan”). The","page_number":8,"box":{"x":116,"y":878,"width":748,"height":12}},{"id":"ef856c07-acf2-41b6-b459-e3bf88e44ebd","block_type":"box","text":"Reorganization is intended to qualify as a tax-free reorganization under Section 368(a) of the U.S. Internal","page_number":8,"box":{"x":116,"y":894,"width":722,"height":11}},{"id":"86487188-0246-4e26-beec-4bc05e008aa4","block_type":"box","text":"Revenue Code of 1986, as amended. As a result, Fund shareholders generally are not expected to recognize a","page_number":8,"box":{"x":116,"y":909,"width":736,"height":12}},{"id":"ac9c6ebf-1cd8-4e66-949a-7bbf3487c8c7","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":8,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"09fc87df-ca51-4b1b-88dd-542664fd9131","block_type":"box","text":"gain (or loss) for U.S. federal income tax purposes as a result of the Reorganization (except with respect to cash","page_number":9,"box":{"x":116,"y":88,"width":758,"height":11}},{"id":"b7dd89e4-a5cc-4c6d-994b-dcfe50a27131","block_type":"box","text":"received, as explained elsewhere in this Supplement).","page_number":9,"box":{"x":116,"y":103,"width":365,"height":12}},{"id":"fe96d8a7-51b7-487a-8946-798dddc9b933","block_type":"box","text":"In connection with the Reorganization, shareholders of the Fund will receive ETF shares of the Acquiring Fund","page_number":9,"box":{"x":116,"y":134,"width":756,"height":12}},{"id":"5cdb1e1d-62c2-4aec-a014-3edc1d34e306","block_type":"box","text":"equal in value to the number of shares of the Fund they own, including a cash payment in lieu of fractional shares","page_number":9,"box":{"x":116,"y":150,"width":770,"height":11}},{"id":"368f3918-1525-44ca-978c-8721e64cfcc5","block_type":"box","text":"of the Acquiring Fund, which cash payment may be taxable.","page_number":9,"box":{"x":116,"y":165,"width":411,"height":12}},{"id":"a327f494-54e4-46d5-a9f6-e4ce9f25e371","block_type":"box","text":"Completion of the Reorganization is subject to a number of conditions under the Plan, including approval by","page_number":9,"box":{"x":116,"y":196,"width":737,"height":12}},{"id":"964bfc3c-5483-405a-9ccd-7c2587d980e4","block_type":"box","text":"shareholders of the Fund. Shareholders of record of the Fund as of October 23, 2026 will receive a combined","page_number":9,"box":{"x":117,"y":212,"width":738,"height":10}},{"id":"e6028ee5-1dae-4d81-97a0-604a812fa2bc","block_type":"box","text":"prospectus/proxy statement describing in detail both the Reorganization and the Acquiring Fund, summarizing","page_number":9,"box":{"x":116,"y":227,"width":750,"height":12}},{"id":"a4020b64-436c-4bcc-b80b-4b1fa49636a3","block_type":"box","text":"the Board’s considerations in approving the Reorganization and soliciting their vote with respect to the proposed","page_number":9,"box":{"x":116,"y":243,"width":764,"height":11}},{"id":"5b2524d9-599e-480e-b233-c261e399194b","block_type":"box","text":"Reorganization. If approved, the Reorganization is anticipated to take effect on or about May 21, 2027, or such","page_number":9,"box":{"x":116,"y":258,"width":753,"height":12}},{"id":"750679e8-e97f-49dd-b661-15e95b2eaf7b","block_type":"box","text":"other date as the parties may agree. When you receive your combined prospectus/proxy statement, please review","page_number":9,"box":{"x":116,"y":274,"width":764,"height":11}},{"id":"3529607c-4827-4806-be2a-93f686282227","block_type":"box","text":"it and cast your vote as instructed in the materials so the Fund may avoid any future solicitations.","page_number":9,"box":{"x":116,"y":289,"width":659,"height":12}},{"id":"ef5785bb-7781-47b8-abea-e43a87ee9f59","block_type":"box","text":"The following changes will take effect either immediately or on an upcoming future date as described below.","page_number":9,"box":{"x":116,"y":320,"width":740,"height":12}},{"id":"a873a474-dd4f-45a7-bc7d-0791ca2840a2","block_type":"box","text":"These actions include limits on new purchases of certain Fund shares, the removal of sales charges on purchases","page_number":9,"box":{"x":116,"y":336,"width":762,"height":11}},{"id":"16593b73-7efa-4e3b-9b89-1b56c1a326d8","block_type":"box","text":"of Fund shares, the removal of contingent deferred sales charges on redemptions of Fund shares, and the waiver","page_number":9,"box":{"x":116,"y":351,"width":758,"height":12}},{"id":"97940014-fafd-469a-82e5-48ee106a8938","block_type":"box","text":"of Distribution and Service (Rule 12b-1) Fees on Fund shares.","page_number":9,"box":{"x":116,"y":367,"width":423,"height":11}},{"id":"07d2150d-c803-4520-b352-62160f344f5b","block_type":"box","text":"Consequently, the Fund’s Summary Prospectuses, Prospectuses and Statement of Additional Information are","page_number":9,"box":{"x":116,"y":398,"width":738,"height":11}},{"id":"79c54bde-587f-4ca8-b6e4-df10f058ffe2","block_type":"box","text":"amended as follows:","page_number":9,"box":{"x":116,"y":413,"width":142,"height":9}},{"id":"67b065a2-4980-4c36-8a9b-477e360cc036","block_type":"box","text":"1. Investor A, Investor C, Institutional, Class R, and Class K Shares of the Fund will be offered","page_number":9,"box":{"x":184,"y":444,"width":701,"height":11}},{"id":"3cfd4e35-2b9b-4622-9c4b-8902611f43b0","block_type":"box","text":"only on a limited basis.","page_number":9,"box":{"x":217,"y":460,"width":163,"height":11}},{"id":"3e567a6f-184e-43e8-85cb-48047e8761a1","block_type":"box","text":"The section of the Investor A Shares, Investor C Shares, Institutional Shares and Class R Shares Summary","page_number":9,"box":{"x":116,"y":491,"width":770,"height":11}},{"id":"1979ffa3-46fe-43c1-bbff-3f8a369ba842","block_type":"box","text":"Prospectus and Prospectus entitled “Key Facts About BlackRock Advantage Large Cap Growth","page_number":9,"box":{"x":116,"y":506,"width":695,"height":12}},{"id":"a840e1de-13f4-48af-8330-0971d700f628","block_type":"box","text":"Fund—Purchase and Sale of Fund Shares” and “Fund Overview—Key Facts About Advantage Large 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Shareholders already holding Investor","page_number":10,"box":{"x":183,"y":227,"width":689,"height":12}},{"id":"0a849685-7aa7-48f7-a315-471107299fc2","block_type":"box","text":"A Shares through a Financial Intermediary may continue to reinvest dividends and distributions.","page_number":10,"box":{"x":183,"y":243,"width":654,"height":11}},{"id":"32ff9469-3915-4fde-ac24-f847ad74e024","block_type":"box","text":"The section of the Investor A Shares, Investor C Shares, Institutional Shares and Class R Shares","page_number":10,"box":{"x":116,"y":274,"width":695,"height":11}},{"id":"fdca826f-aaa8-496e-9a46-dbbfd047e966","block_type":"box","text":"Prospectus entitled “Account Information—How to Choose the Share Class that Best Suits Your","page_number":10,"box":{"x":116,"y":289,"width":697,"height":12}},{"id":"90f3696d-6342-4aa2-8893-78e6fba5c497","block_type":"box","text":"Needs—Share Classes at a Glance—Availability—Investor C” is hereby deleted in its entirety and","page_number":10,"box":{"x":116,"y":305,"width":707,"height":11}},{"id":"780e9d4a-73d0-4777-a456-5da83643bbbc","block_type":"box","text":"replaced with the following:","page_number":10,"box":{"x":116,"y":320,"width":205,"height":12}},{"id":"0771dd78-419e-4ed7-a70f-41e42920fa68","block_type":"box","text":"Generally available through Financial Intermediaries. 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Sales Charge Waiver on Investor A Shares","page_number":11,"box":{"x":183,"y":740,"width":340,"height":12}},{"id":"3771c2c2-e46f-43f8-9611-ee449041e82b","block_type":"box","text":"The section of the Investor A Shares, Investor C Shares, Institutional Shares and Class R Shares Summary","page_number":11,"box":{"x":116,"y":770,"width":766,"height":12}},{"id":"91e2498e-94a6-4c19-8916-b58f5fe51961","block_type":"box","text":"Prospectus and Prospectus entitled “Key Facts About BlackRock Advantage Large Cap Growth","page_number":11,"box":{"x":116,"y":786,"width":690,"height":11}},{"id":"8137c019-6232-42aa-bc6b-cb144222da39","block_type":"box","text":"Fund—Fees and Expenses of the Fund” and “Fund Overview—Key Facts About BlackRock Advantage","page_number":11,"box":{"x":116,"y":801,"width":742,"height":12}},{"id":"b334e1ac-096d-4e7d-ba28-897307466bde","block_type":"box","text":"Large Cap Growth Fund—Fees and Expenses of the Fund” is hereby amended to add the following","page_number":11,"box":{"x":116,"y":817,"width":712,"height":11}},{"id":"eb57f9d9-a94d-449f-9d48-b0c4c4aa0a89","block_type":"box","text":"sentence to the paragraph preceding the fee table:","page_number":11,"box":{"x":116,"y":832,"width":363,"height":12}},{"id":"c5fb6d3c-e5c7-45c0-bb38-ffd0e11651cf","block_type":"box","text":"Beginning on April 1, 2027, no initial sales charge will be imposed on purchases of Investor A Shares of the","page_number":11,"box":{"x":116,"y":862,"width":735,"height":12}},{"id":"459430b6-4c43-442e-9e64-afaedeaa3260","block_type":"box","text":"Fund.","page_number":11,"box":{"x":116,"y":877,"width":43,"height":9}},{"id":"daad45d9-0fd3-4768-a3f5-8f9983374fe7","block_type":"box","text":"4","page_number":11,"box":{"x":495,"y":909,"width":8,"height":9}},{"id":"c8b70743-d64c-4064-aded-c43acf99f4ff","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":11,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"64692a75-fa48-47b0-a98e-a3a9245ef2d8","block_type":"box","text":"The section of the Investor A Shares, Investor C Shares, Institutional Shares and Class R Shares","page_number":12,"box":{"x":116,"y":87,"width":695,"height":12}},{"id":"8855f7ac-d045-4640-9ced-dd008696ffd7","block_type":"box","text":"Prospectus entitled “Account Information—How to Choose the Share Class that Best Suits Your","page_number":12,"box":{"x":116,"y":103,"width":697,"height":12}},{"id":"527b0563-dae1-48a1-a09f-d6683b9a0426","block_type":"box","text":"Needs—Share Classes at a Glance—Initial Sales Charge?—Investor A” is hereby deleted in its entirety","page_number":12,"box":{"x":116,"y":118,"width":742,"height":12}},{"id":"148d9b7f-8386-4a7d-9bc2-128450fdb649","block_type":"box","text":"and replaced with the following:","page_number":12,"box":{"x":116,"y":134,"width":236,"height":12}},{"id":"6871c605-049d-4275-abd8-9c24b9a67585","block_type":"box","text":"Yes. 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Contingent deferred sales charge waiver on Investor A and Investor C Shares of the Fund.","page_number":12,"box":{"x":183,"y":224,"width":687,"height":12}},{"id":"a6c689f0-557a-402c-b5f2-dbcea91fcc99","block_type":"box","text":"The section of the Investor A Shares, Investor C Shares, Institutional Shares and Class R Shares Summary","page_number":12,"box":{"x":116,"y":254,"width":770,"height":12}},{"id":"281a4dcb-03bf-4b62-9915-cd5cf6057feb","block_type":"box","text":"Prospectus and Prospectus entitled “Key Facts About BlackRock Advantage Large Cap Growth","page_number":12,"box":{"x":116,"y":269,"width":695,"height":12}},{"id":"462e62da-6799-4a3c-8d6f-d76158e68f1b","block_type":"box","text":"Fund—Fees and Expenses of the Fund” and “Fund Overview—Key Facts About BlackRock Advantage","page_number":12,"box":{"x":116,"y":285,"width":746,"height":12}},{"id":"dc87f077-2f11-4601-ab13-e3bbf2edd1c5","block_type":"box","text":"Large Cap Growth Fund—Fees and Expenses of the Fund” is hereby amended to add the following","page_number":12,"box":{"x":116,"y":300,"width":716,"height":12}},{"id":"56160352-9de4-42cd-b983-c116ce02c67e","block_type":"box","text":"sentence to the paragraph preceding the fee table:","page_number":12,"box":{"x":116,"y":316,"width":363,"height":12}},{"id":"5892da66-8037-430f-b8e8-4ff60cdf6eea","block_type":"box","text":"Beginning on April 1, 2027, no contingent deferred sales charge (“CDSC”) will be imposed on redemptions of","page_number":12,"box":{"x":116,"y":346,"width":750,"height":11}},{"id":"57e62c3c-4656-4c33-9bae-bbfa7711f9cb","block_type":"box","text":"Investor A Shares or Investor C Shares.","page_number":12,"box":{"x":116,"y":361,"width":271,"height":9}},{"id":"6f0dd6d7-650d-488e-a201-a3cfaef8be9b","block_type":"box","text":"The section of the Investor A Shares, Investor C Shares, Institutional Shares and Class R Shares","page_number":12,"box":{"x":116,"y":391,"width":695,"height":11}},{"id":"f6d558cc-2881-4af0-a981-c3c4c9445a0c","block_type":"box","text":"Prospectus entitled “Account Information—How to Choose the Share Class that Best Suits Your","page_number":12,"box":{"x":116,"y":406,"width":697,"height":12}},{"id":"82fe98f4-f923-4175-a6bc-13118873d839","block_type":"box","text":"Needs—Share Classes at a Glance—Deferred Sales Charge?—Investor A” is hereby deleted in its entirety","page_number":12,"box":{"x":116,"y":422,"width":762,"height":11}},{"id":"b5b0b19c-27f4-4b15-8276-b20ee04deff4","block_type":"box","text":"and replaced with the following:","page_number":12,"box":{"x":116,"y":437,"width":236,"height":12}},{"id":"7716f237-1754-481d-a460-85023e044bcc","block_type":"box","text":"No. (May be charged for purchases of $1 million or more that are redeemed within 18 months). 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You will need to enter into a new Letter of","page_number":12,"box":{"x":116,"y":801,"width":334,"height":9}},{"id":"6f201bf6-0121-4af3-a71a-ba8f9d71137c","block_type":"box","text":"Intent if you want to continue to make Investor A Shares","page_number":12,"box":{"x":454,"y":801,"width":382,"height":12}},{"id":"1b44d38a-e1f6-4e1d-83a2-130879e85c0a","block_type":"box","text":"purchases in other BlackRock Funds at a reduced initial sales charge. This change may also apply to the Letters","page_number":12,"box":{"x":116,"y":817,"width":751,"height":11}},{"id":"44542031-a920-4bf8-8953-d810588bcec8","block_type":"box","text":"of Intent described in the “Intermediary-Defined Sales Charge Waiver Policies” section beginning on page A 1 of","page_number":12,"box":{"x":116,"y":832,"width":771,"height":12}},{"id":"1abe6c86-d28c-400a-b52c-cc01cd9aaf5f","block_type":"box","text":"the Fund’s prospectus.","page_number":12,"box":{"x":116,"y":848,"width":156,"height":11}},{"id":"e5d6bf51-d144-43c7-b71d-cf3f0f701cd7","block_type":"box","text":"5.","page_number":12,"box":{"x":183,"y":878,"width":17,"height":8}},{"id":"a4ac065a-1588-4fa4-8834-0fb8bf009bf5","block_type":"box","text":"Waiver of Distribution and Service (12b-1) Fees on Investor A and Investor C Shares of the Fund.","page_number":12,"box":{"x":217,"y":877,"width":666,"height":12}},{"id":"9fbd8dc9-f673-46eb-8291-19ec178f8500","block_type":"box","text":"5","page_number":12,"box":{"x":496,"y":909,"width":7,"height":9}},{"id":"bc5bb1be-72b3-47bb-8260-698a9b3d924e","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":12,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"199152bf-81f6-498c-9191-cc089f1b1d48","block_type":"box","text":"The section of the Investor A Shares, Investor C Shares, Institutional Shares and Class R Shares","page_number":13,"box":{"x":116,"y":87,"width":695,"height":12}},{"id":"06c8590a-7f47-42b9-aa97-13bb93464efd","block_type":"box","text":"Prospectus entitled “Account Information—How to Choose the Share Class that Best Suits Your","page_number":13,"box":{"x":116,"y":103,"width":697,"height":12}},{"id":"0443a765-2852-4536-afec-48ca28bae33d","block_type":"box","text":"Needs—Share Classes at a Glance—Distribution and Service (12b 1) Fees?—Investor A” is hereby deleted","page_number":13,"box":{"x":116,"y":118,"width":766,"height":12}},{"id":"4ed3e07c-311a-4e2c-9b39-7f876118c5ee","block_type":"box","text":"in its entirety and replaced with the following:","page_number":13,"box":{"x":116,"y":134,"width":336,"height":12}},{"id":"fabc3910-6211-4a0b-b597-aac6b5ab9cca","block_type":"box","text":"No Distribution Fee. 0.25% Annual Service Fee. All 12b 1 Service Fees will be voluntarily waived beginning","page_number":13,"box":{"x":116,"y":165,"width":743,"height":12}},{"id":"83f9fb10-f500-40ed-ad00-1218b5dc813a","block_type":"box","text":"April 1, 2027.","page_number":13,"box":{"x":116,"y":181,"width":98,"height":11}},{"id":"cd17b289-56f8-4949-b4cd-2d370f1fc67b","block_type":"box","text":"The section of the Investor A Shares, Investor C Shares, Institutional Shares and Class R Shares","page_number":13,"box":{"x":116,"y":211,"width":695,"height":12}},{"id":"3b37a851-7013-4569-b876-717a1178f94c","block_type":"box","text":"Prospectus entitled “Account Information—How to Choose the Share Class that Best Suits Your","page_number":13,"box":{"x":116,"y":227,"width":697,"height":12}},{"id":"c1b70d0f-6284-4fe7-a35b-276c557bd7e4","block_type":"box","text":"Needs—Share Classes at a Glance—Distribution and Service (12b 1) Fees?—Investor C” is hereby deleted","page_number":13,"box":{"x":116,"y":242,"width":766,"height":12}},{"id":"7cb6ac3a-3a8b-4955-816e-bb5245f01cbd","block_type":"box","text":"in its entirety and replaced with the following:","page_number":13,"box":{"x":116,"y":258,"width":336,"height":12}},{"id":"34723d5c-dcf1-45c7-bbb5-a7477a4a6868","block_type":"box","text":"0.75% Annual Distribution Fee. 0.25% Annual Service Fee. All 12b 1 Distribution and Service Fees will be","page_number":13,"box":{"x":116,"y":289,"width":731,"height":9}},{"id":"a1db1b1d-c23b-428a-8fb5-e3c0ede80784","block_type":"box","text":"voluntarily waived beginning April 1, 2027.","page_number":13,"box":{"x":116,"y":305,"width":301,"height":11}},{"id":"bec1f136-7060-4782-b90c-bfc5914cfaad","block_type":"box","text":"The section of the Investor A Shares, Investor C Shares, Institutional Shares and Class R Shares","page_number":13,"box":{"x":116,"y":336,"width":695,"height":11}},{"id":"42b35aad-051e-4a30-9d32-747c91161f4d","block_type":"box","text":"Prospectus entitled “Account Information—How to Choose the Share Class that Best Suits Your","page_number":13,"box":{"x":116,"y":351,"width":697,"height":12}},{"id":"65701c9a-31a5-4b42-b59d-a6cc05385fc0","block_type":"box","text":"Needs—Share Classes at a Glance—Distribution and Service (12b 1) Fees?—Class R” is hereby deleted in","page_number":13,"box":{"x":116,"y":367,"width":763,"height":11}},{"id":"246f748d-af4d-4a3f-9200-1795c6b68f93","block_type":"box","text":"its entirety and replaced with the following:","page_number":13,"box":{"x":116,"y":382,"width":317,"height":12}},{"id":"867f3e16-bb1d-433c-9d26-44edfaaf4543","block_type":"box","text":"0.25% Annual Distribution Fee. 0.25% Annual Service Fee. All 12b 1 Distribution and Service Fees will be","page_number":13,"box":{"x":116,"y":413,"width":731,"height":9}},{"id":"bdc0b936-2dda-4ca6-a69a-d33229954954","block_type":"box","text":"voluntarily waived beginning April 1, 2027.","page_number":13,"box":{"x":116,"y":429,"width":301,"height":11}},{"id":"a6840406-918a-42a9-bf82-3b5534428e3a","block_type":"box","text":"In anticipation of the Reorganization, the final date to purchase Fund shares, or to exchange shares of","page_number":13,"box":{"x":116,"y":460,"width":735,"height":11}},{"id":"70edd06f-6a9c-40ff-9bfc-5a09df74c319","block_type":"box","text":"another BlackRock Fund for shares of the Fund, will be May 14, 2027 (April 30, 2027 for existing direct","page_number":13,"box":{"x":116,"y":475,"width":747,"height":12}},{"id":"aad7f671-caba-46cd-bff6-8860fb065733","block_type":"box","text":"accounts and through direct IRAs). The final date to exchange Fund shares for shares of another","page_number":13,"box":{"x":116,"y":491,"width":698,"height":11}},{"id":"352fddda-92c8-4797-bae3-e68e625529a7","block_type":"box","text":"BlackRockFund will be May 20, 2027 (May 14, 2027 for direct accounts and direct IRAs). The final date to","page_number":13,"box":{"x":116,"y":506,"width":769,"height":12}},{"id":"1ce6826a-10f0-44c6-82bb-a59f0aee978c","block_type":"box","text":"redeem Fund shares will be May 20, 2027. These dates may change if the Closing Date of the","page_number":13,"box":{"x":116,"y":522,"width":666,"height":11}},{"id":"d094fd75-3a06-483b-8cbf-76ac079d4948","block_type":"box","text":"Reorganization changes. Any changes to the Closing Date of the Reorganization will be communicated to","page_number":13,"box":{"x":116,"y":537,"width":756,"height":12}},{"id":"012208f2-c9b2-48aa-b6cb-54b161cdb289","block_type":"box","text":"shareholders.","page_number":13,"box":{"x":116,"y":553,"width":101,"height":9}},{"id":"78cdac00-f298-415f-b018-5fb52b48c54a","block_type":"box","text":"6","page_number":13,"box":{"x":496,"y":909,"width":7,"height":9}},{"id":"140fcb9b-a97f-40d3-a3e5-cd0c5fa1ae1e","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":13,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"6d5dc80e-f4e2-4240-b35a-179ac7e29e06","block_type":"box","text":"IMPORTANT NOTICE ABOUT YOUR FUND ACCOUNT","page_number":14,"box":{"x":283,"y":87,"width":437,"height":10}},{"id":"e2c2e565-ba0f-41e8-8391-10ac800e5163","block_type":"box","text":"QUESTIONS AND ANSWERS","page_number":14,"box":{"x":387,"y":118,"width":230,"height":12}},{"id":"30baf0ae-95c6-4128-b7b0-46906cbd1c1a","block_type":"box","text":"The following is a brief Q&A that provides information to help you to determine if you need to take action with","page_number":14,"box":{"x":116,"y":150,"width":759,"height":11}},{"id":"c73d8ce9-0799-4f1c-8565-a4893111edc3","block_type":"box","text":"respect to your Fund shareholder account prior to the Reorganization in order to receive shares of the Acquiring","page_number":14,"box":{"x":116,"y":165,"width":758,"height":12}},{"id":"61817d53-af80-4793-853e-d4dc99ad0215","block_type":"box","text":"Fund.","page_number":14,"box":{"x":116,"y":181,"width":43,"height":9}},{"id":"4576e22a-7c90-4278-a1c2-c4e759da1385","block_type":"box","text":"Q. What types of shareholder accounts can receive shares of the Acquiring Fund as part of the","page_number":14,"box":{"x":116,"y":212,"width":681,"height":11}},{"id":"d9dd9c47-b0cb-4c4d-b93f-421ad749000a","block_type":"box","text":"Reorganization?","page_number":14,"box":{"x":116,"y":227,"width":123,"height":12}},{"id":"c77dec3d-d370-45d7-8bb4-94e2d9b84976","block_type":"box","text":"A.","page_number":14,"box":{"x":116,"y":258,"width":15,"height":9}},{"id":"0651c9a6-7a7a-48f3-be83-2b1ab64829cf","block_type":"box","text":"If you hold your shares of the Fund in a brokerage account that permits you to purchase securities traded in","page_number":14,"box":{"x":132,"y":258,"width":731,"height":12}},{"id":"dc178e3b-4bb5-45aa-80e0-567be5626f72","block_type":"box","text":"the stock market, such as ETFs or other types of stocks, then you will be eligible to receive shares of the","page_number":14,"box":{"x":116,"y":274,"width":707,"height":11}},{"id":"673f90d8-5a1e-47ed-b234-5ffbf3a62846","block_type":"box","text":"Acquiring Fund in the Reorganization. No further action is required.","page_number":14,"box":{"x":116,"y":289,"width":465,"height":12}},{"id":"3d45ed38-ab95-44da-8d5e-42fe933df146","block_type":"box","text":"Q. What types of shareholder accounts cannot receive shares of the Acquiring Fund as part of the","page_number":14,"box":{"x":116,"y":320,"width":704,"height":12}},{"id":"0d7bd6b4-040c-4258-9a6d-1dae6e04e9c5","block_type":"box","text":"Reorganization and what will happen if I do not have a brokerage account that can accept Acquiring Fund","page_number":14,"box":{"x":116,"y":336,"width":770,"height":11}},{"id":"b1bea4a3-6ee7-4e43-891a-8e36677546a3","block_type":"box","text":"shares at the time of the Reorganization?","page_number":14,"box":{"x":116,"y":351,"width":299,"height":12}},{"id":"deab2908-d016-400e-a695-087396cd52d0","block_type":"box","text":"A.","page_number":14,"box":{"x":116,"y":382,"width":15,"height":9}},{"id":"ccc0327c-49f8-4d94-8c55-e010bf3ecca9","block_type":"box","text":"The following account types cannot hold shares of ETFs:","page_number":14,"box":{"x":132,"y":382,"width":394,"height":12}},{"id":"a5a53791-22d5-44cf-9b84-d42b92d23b71","block_type":"box","text":"Non-Accommodating Brokerage Accounts.","page_number":14,"box":{"x":115,"y":413,"width":293,"height":12}},{"id":"f75273bb-c67a-4889-bde3-ff2df51d131e","block_type":"box","text":"If you hold your shares of the Fund in a brokerage account with a","page_number":14,"box":{"x":409,"y":413,"width":445,"height":12}},{"id":"8d4246b9-4007-494c-8e27-abd358eabbbd","block_type":"box","text":"financial intermediary that only allows you to hold shares of mutual funds in the account, you will need to","page_number":14,"box":{"x":116,"y":429,"width":720,"height":11}},{"id":"cee99a1e-6602-4f60-b801-db01afd83212","block_type":"box","text":"contact your financial intermediary to set up a brokerage account that permits investments in ETF shares. If such","page_number":14,"box":{"x":116,"y":444,"width":765,"height":12}},{"id":"b6787417-04b7-47f1-8293-76b5a4c6aef1","block_type":"box","text":"a change is not made before the Reorganization, you will not receive shares of the Acquiring Fund as part of the","page_number":14,"box":{"x":116,"y":460,"width":760,"height":11}},{"id":"cce66df8-37dc-4369-b5f8-0a3d5495ace3","block_type":"box","text":"Reorganization. Instead, your investment will be liquidated on May 14, 2027, and you will receive cash equal in","page_number":14,"box":{"x":116,"y":475,"width":761,"height":12}},{"id":"85267be6-bf99-4b01-9fff-6c846b415724","block_type":"box","text":"value to the net asset value (“NAV”) of your Fund shares.","page_number":14,"box":{"x":116,"y":491,"width":395,"height":11}},{"id":"590ae3db-698b-4629-9125-c4a341e693d3","block_type":"box","text":"Non-Accommodating Retirement Accounts.","page_number":14,"box":{"x":115,"y":522,"width":296,"height":11}},{"id":"b6ede323-5179-4654-8cd6-71812bfd2d67","block_type":"box","text":"If you hold your shares of the Fund through an individual retirement","page_number":14,"box":{"x":412,"y":522,"width":465,"height":11}},{"id":"8ca40591-4c0c-4ea8-a9c1-3614acb81d96","block_type":"box","text":"account (“IRA”) or group retirement plan whose plan sponsor does not have the ability to hold shares of ETFs on","page_number":14,"box":{"x":116,"y":537,"width":768,"height":12}},{"id":"615756eb-f0fd-4a14-bf09-d0b54f279a40","block_type":"box","text":"its platform, you may need to redeem your shares prior to the Reorganization or, if applicable, your financial","page_number":14,"box":{"x":116,"y":553,"width":737,"height":11}},{"id":"eee09088-bcd5-47b6-b400-1549a83c4ff1","block_type":"box","text":"intermediary may transfer your investment in the Fund to a different investment option prior to the","page_number":14,"box":{"x":116,"y":568,"width":670,"height":12}},{"id":"173217a7-a358-4b7f-a46f-57e1f5c16e2d","block_type":"box","text":"Reorganization. If either such change is not made before the Reorganization, you will not receive shares of the","page_number":14,"box":{"x":116,"y":584,"width":750,"height":11}},{"id":"1556f824-da14-437d-9831-718d20f97626","block_type":"box","text":"Acquiring Fund as part of the Reorganization. Instead, your investment will be liquidated on May 14, 2027, and","page_number":14,"box":{"x":116,"y":599,"width":759,"height":12}},{"id":"4f588a39-ec2d-4a8a-8605-b31988ec52d3","block_type":"box","text":"you will receive cash equal in value to the NAV of your Fund shares.","page_number":14,"box":{"x":116,"y":615,"width":471,"height":11}},{"id":"1d22b0db-d214-48e7-bd09-80ea6eab379c","block_type":"box","text":"Direct Accounts.","page_number":14,"box":{"x":116,"y":646,"width":117,"height":9}},{"id":"7dbc0bbb-d727-4e0d-b475-d91eb8f31171","block_type":"box","text":"If you hold your shares of the Fund in an account directly with the Fund at its transfer","page_number":14,"box":{"x":234,"y":646,"width":624,"height":11}},{"id":"b42f0f31-faf2-4651-b780-d855892c5dd1","block_type":"box","text":"agent, BNY Mellon Investment Servicing (US) Inc. (a “direct account”), you must transfer your shares of","page_number":14,"box":{"x":116,"y":661,"width":754,"height":12}},{"id":"c8643307-e342-4270-a725-c144fe5d3913","block_type":"box","text":"the Fund to a brokerage account that can accept shares of the Acquiring Fund prior to May 14, 2027 in","page_number":14,"box":{"x":116,"y":677,"width":739,"height":11}},{"id":"ae35117a-2ccb-49ec-afbd-e9405f241b9b","block_type":"box","text":"order to receive shares of the Acquiring Fund,","page_number":14,"box":{"x":116,"y":692,"width":332,"height":12}},{"id":"23558b61-9c43-45b9-8d78-c21eb388ad4f","block_type":"box","text":"unless otherwise agreed in advance with BFA in BFA’s","page_number":14,"box":{"x":452,"y":692,"width":394,"height":12}},{"id":"1638a6a4-cbe5-479c-b876-3691ac68547b","block_type":"box","text":"complete discretion.","page_number":14,"box":{"x":116,"y":708,"width":143,"height":11}},{"id":"97229555-0fc1-4fdf-ba9a-756487a3672b","block_type":"box","text":"For this purpose, a direct account includes a direct IRA. If you hold your shares of the","page_number":14,"box":{"x":264,"y":708,"width":580,"height":11}},{"id":"eb0e62c0-9fb2-4ecb-ab4c-7effb2189c02","block_type":"box","text":"Fund through a direct IRA and you do not take action to transfer your investment in the Fund to a different","page_number":14,"box":{"x":116,"y":723,"width":720,"height":12}},{"id":"365b396f-6ca0-4a50-902b-35b626d0aba3","block_type":"box","text":"investment option prior to May 14, 2027, your Fund shares will be exchanged on May 14, 2027 for shares of","page_number":14,"box":{"x":116,"y":739,"width":734,"height":11}},{"id":"6c89af46-ea7e-4bc7-83a5-5ba83a5e9430","block_type":"box","text":"BlackRock Summit Cash Reserves Fund (the “Money Market Fund”), a series of BlackRock Financial","page_number":14,"box":{"x":116,"y":754,"width":691,"height":12}},{"id":"e8f4aabb-37b6-4780-9605-ae8f73b5601d","block_type":"box","text":"Institutions Series Trust, equal in value to the NAV of your Fund shares. Such shareholders holding Investor A","page_number":14,"box":{"x":116,"y":770,"width":748,"height":11}},{"id":"f01114ad-9a89-48c4-9a1e-d425674c5c15","block_type":"box","text":"Shares or Class R Shares of the Fund will be exchanged into Investor A Shares of the Money Market Fund, such","page_number":14,"box":{"x":116,"y":785,"width":758,"height":12}},{"id":"75095698-5064-4450-b1d8-957aa85120a0","block_type":"box","text":"shareholders holding Investor C Shares of the Fund will be exchanged into Investor C Shares of the Money","page_number":14,"box":{"x":117,"y":801,"width":722,"height":11}},{"id":"251daf56-52cf-4aaa-b3b6-875efba5afa3","block_type":"box","text":"Market Fund, and such shareholders holding Institutional Shares or Class K Shares of the Fund will be","page_number":14,"box":{"x":116,"y":816,"width":692,"height":12}},{"id":"60772649-664b-498b-abe2-aa9915228dc5","block_type":"box","text":"exchanged into Institutional Shares of the Money Market Fund. You have a direct account if you receive","page_number":14,"box":{"x":116,"y":832,"width":709,"height":11}},{"id":"35a298b6-f013-4602-a865-41f545306703","block_type":"box","text":"quarterly account statements directly from the Fund and not from a third-party broker-dealer.","page_number":14,"box":{"x":116,"y":847,"width":632,"height":12}},{"id":"285765d7-e037-4307-906e-6a6bda925e2f","block_type":"box","text":"In some cases, the liquidation of your investment and return of cash, or the transfer of your investment to","page_number":14,"box":{"x":116,"y":878,"width":761,"height":12}},{"id":"d828e511-8010-42ce-a2cc-e677835f8796","block_type":"box","text":"a different investment option, may be subject to fees and expenses, and it may take time to receive your","page_number":14,"box":{"x":116,"y":894,"width":744,"height":11}},{"id":"8ea4aa2b-579c-449f-a805-2bf4bbe0fce2","block_type":"box","text":"cash. The redemption of Fund shares or the transfer of Fund shares to a different investment option prior","page_number":14,"box":{"x":116,"y":909,"width":759,"height":12}},{"id":"e1690760-00f3-405d-ae61-9c6749a5467b","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":14,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"947f4011-92d8-45fa-b557-74daa43a53a4","block_type":"box","text":"to the Reorganization, or the receipt of cash or shares in a fund other than the Acquiring Fund in","page_number":15,"box":{"x":116,"y":87,"width":702,"height":12}},{"id":"1493d540-78dd-44f5-b719-bd9182314025","block_type":"box","text":"exchange for Fund shares, is expected to be a taxable transaction to shareholders in non-tax qualified","page_number":15,"box":{"x":116,"y":103,"width":730,"height":12}},{"id":"4343183d-0182-45c5-8b4c-9ced41bcd6b8","block_type":"box","text":"accounts. If you are unsure about the ability of your account to accept shares of the Acquiring Fund,","page_number":15,"box":{"x":116,"y":118,"width":725,"height":12}},{"id":"40cefa53-1677-4856-bdaa-23813e2c6484","block_type":"box","text":"please call (800) 441-7762 or contact your financial advisor or other financial intermediary.","page_number":15,"box":{"x":116,"y":134,"width":659,"height":12}},{"id":"8451c29e-f136-417c-8067-96e83ae03d13","block_type":"box","text":"Q. How do I transfer my Fund shares from a direct account to a brokerage account that will accept","page_number":15,"box":{"x":116,"y":165,"width":716,"height":12}},{"id":"e44f5654-6f0d-4634-9a21-dd30d0b06370","block_type":"box","text":"Acquiring Fund shares?","page_number":15,"box":{"x":116,"y":180,"width":178,"height":12}},{"id":"ccd7c379-9c9a-4920-9533-0208034de7cd","block_type":"box","text":"A","page_number":15,"box":{"x":116,"y":212,"width":11,"height":8}},{"id":"85fbb672-e8b1-4d23-955a-eeed56bc70a3","block_type":"box","text":". Transferring your shares from a direct account to a brokerage account that can accept shares of the Acquiring","page_number":15,"box":{"x":129,"y":212,"width":749,"height":11}},{"id":"8bb2f1ac-94c7-4b92-b3e5-abb8306127d6","block_type":"box","text":"Fund should be a simple process. If you have a brokerage account or a relationship with a brokerage firm, please","page_number":15,"box":{"x":116,"y":227,"width":764,"height":12}},{"id":"cf0b7182-2f90-4655-9c01-ae9e8b4127d2","block_type":"box","text":"talk to your broker and inform the broker that you would","page_number":15,"box":{"x":116,"y":243,"width":387,"height":11}},{"id":"7ad3047e-1393-42b8-9fb2-d0abd8f5fb12","block_type":"box","text":"like to transfer a mutual fund position that you hold","page_number":15,"box":{"x":503,"y":243,"width":352,"height":11}},{"id":"499a881e-27ab-49be-934b-6dfa0f542a16","block_type":"box","text":"directly with the Fund into your brokerage account. Also inform your broker that such an account will need to be","page_number":15,"box":{"x":116,"y":258,"width":766,"height":12}},{"id":"0a0782fc-08e7-4541-a8d2-254829641ee0","block_type":"box","text":"set up to accept shares of an ETF, such as the Acquiring Fund. If you do not have a brokerage account or a","page_number":15,"box":{"x":117,"y":274,"width":722,"height":11}},{"id":"ac9b1c4e-8460-4ab7-a750-b6174059e098","block_type":"box","text":"relationship with a brokerage firm, you will need to open an account.","page_number":15,"box":{"x":116,"y":289,"width":470,"height":12}},{"id":"bb564311-0d6d-45d2-90b6-d66038c32c9d","block_type":"box","text":"We suggest you provide your broker with a copy of your quarterly statement from the Fund. Your broker will","page_number":15,"box":{"x":116,"y":320,"width":743,"height":12}},{"id":"6dd5238d-441e-4ad1-99a9-1fdcda0b8ab6","block_type":"box","text":"require your account number with the Fund, which can be found on your statement. Your broker will help you","page_number":15,"box":{"x":116,"y":336,"width":747,"height":11}},{"id":"ff41ab0d-44db-4879-bffc-dc7655898fb6","block_type":"box","text":"complete a form to initiate the transfer. Once you sign that form, your broker will submit the form to the transfer","page_number":15,"box":{"x":116,"y":351,"width":764,"height":12}},{"id":"eb41778f-a9c8-4b15-a3b4-5b808eb8383c","block_type":"box","text":"agent directly, and the shares will be transferred into your brokerage account.","page_number":15,"box":{"x":116,"y":367,"width":526,"height":11}},{"id":"49a9159e-6cb7-4680-954a-c914c45adc8f","block_type":"box","text":"The sooner you initiate the","page_number":15,"box":{"x":643,"y":366,"width":190,"height":12}},{"id":"fc0ccfc9-ea37-4af7-a150-daa6bfc484a3","block_type":"box","text":"transfer, the better.","page_number":15,"box":{"x":115,"y":382,"width":132,"height":12}},{"id":"6ecbece2-d6b2-416e-acbb-23f695a37e8c","block_type":"box","text":"Q. How do I transfer my Fund shares from a non-accommodating brokerage account to a brokerage","page_number":15,"box":{"x":116,"y":413,"width":724,"height":12}},{"id":"b764a34c-8d3b-45fe-80bd-aeaf1f773d80","block_type":"box","text":"account that will accept Acquiring Fund shares?","page_number":15,"box":{"x":116,"y":429,"width":352,"height":11}},{"id":"6fac8eb2-c71c-4378-a826-94db370f37aa","block_type":"box","text":"A.","page_number":15,"box":{"x":116,"y":460,"width":15,"height":9}},{"id":"3468776f-8a7b-4984-aa9a-6d7e63cf8603","block_type":"box","text":"The broker with whom you hold your Fund shares should be able to assist you in changing the characteristics","page_number":15,"box":{"x":132,"y":460,"width":745,"height":11}},{"id":"faae4b81-9b7a-420f-8898-b190c35d4ca1","block_type":"box","text":"of your brokerage account to an account that is permitted to invest in ETF shares.","page_number":15,"box":{"x":116,"y":475,"width":553,"height":12}},{"id":"b6637888-7540-4bab-ac0b-7687119d3af9","block_type":"box","text":"Contact your broker right","page_number":15,"box":{"x":670,"y":475,"width":192,"height":12}},{"id":"5e599f35-3ac5-4927-84e2-a6a0a874c7da","block_type":"box","text":"away to make the necessary changes to your account.","page_number":15,"box":{"x":116,"y":491,"width":385,"height":11}},{"id":"86038084-9212-449c-81e9-052fd1dc416c","block_type":"box","text":"Q. What if I do not want to own shares of the Acquiring Fund?","page_number":15,"box":{"x":116,"y":522,"width":456,"height":11}},{"id":"bf2fe114-9fb1-4516-beb6-b019c04e156c","block_type":"box","text":"A.","page_number":15,"box":{"x":116,"y":553,"width":15,"height":9}},{"id":"faca0194-bc4e-424f-835f-8314476384a1","block_type":"box","text":"If you do not want to receive shares of the Acquiring Fund in connection with the Reorganization, you can","page_number":15,"box":{"x":132,"y":553,"width":727,"height":11}},{"id":"c3d89959-8dd1-41e1-aaa6-83a539b55995","block_type":"box","text":"exchange your Fund shares for shares of another mutual fund advised by BlackRock or its affiliates or redeem","page_number":15,"box":{"x":116,"y":568,"width":747,"height":12}},{"id":"71ab00e6-8490-4319-b1d7-d7c34f6557ff","block_type":"box","text":"your Fund shares. Prior to doing so, however, you should consider the tax consequences associated with either","page_number":15,"box":{"x":116,"y":584,"width":749,"height":11}},{"id":"ab083e5e-695c-4802-be64-4f5d28c5c867","block_type":"box","text":"action.","page_number":15,"box":{"x":116,"y":599,"width":49,"height":9}},{"id":"4277cbab-40b9-4f04-9eda-23fd6c7c2fd6","block_type":"box","text":"Each of the exchange of your Fund shares for shares of another mutual fund advised by BlackRock","page_number":15,"box":{"x":166,"y":599,"width":716,"height":12}},{"id":"37416341-556a-4b46-8cd4-c270bba9d824","block_type":"box","text":"or its affiliates or the redemption of your Fund shares will be a taxable transaction to shareholders in","page_number":15,"box":{"x":116,"y":615,"width":730,"height":11}},{"id":"c1a2a79d-680e-4c21-9be2-edd270a3ac3b","block_type":"box","text":"non-tax qualified accounts.","page_number":15,"box":{"x":116,"y":630,"width":193,"height":12}},{"id":"1cced4d4-0dac-47eb-9d0e-394bf5162044","block_type":"box","text":"The last date to exchange your shares into another mutual fund advised by","page_number":15,"box":{"x":310,"y":630,"width":509,"height":12}},{"id":"8e530b89-cf0c-454e-9860-8d64364c79c9","block_type":"box","text":"BlackRock or its affiliates prior to the Reorganization is May 20, 2027 (May 14, 2027, for existing direct","page_number":15,"box":{"x":116,"y":646,"width":713,"height":11}},{"id":"60044942-54e0-45d1-b51d-60a54c15e555","block_type":"box","text":"accounts and direct IRAs). The last date to redeem your shares prior to the Reorganization is May 20, 2027.","page_number":15,"box":{"x":116,"y":661,"width":726,"height":12}},{"id":"f3a7fbdc-8e7a-4c60-9d1a-a2992918b8df","block_type":"box","text":"These dates may change if the closing Date of the Reorganization changes. Any changes to the closing Date of","page_number":15,"box":{"x":116,"y":677,"width":747,"height":11}},{"id":"0c23ec92-ef60-4978-b185-1b1d51891bfc","block_type":"box","text":"the Reorganization will be communicated to shareholders.","page_number":15,"box":{"x":116,"y":692,"width":391,"height":12}},{"id":"d135db50-d55d-42cb-b0a0-e056e1d9d208","block_type":"box","text":"* * *","page_number":15,"box":{"x":484,"y":723,"width":31,"height":6}},{"id":"5b846ce1-0fd9-4309-800e-a71c87fe7688","block_type":"box","text":"In connection with the Reorganization discussed herein, a combined prospectus/proxy statement that will","page_number":15,"box":{"x":116,"y":754,"width":754,"height":12}},{"id":"8ff1a1f9-edd2-4dc5-96b0-4983f15529c5","block_type":"box","text":"be included in a registration statement on Form N 14 will be filed with the SEC. After the registration","page_number":15,"box":{"x":116,"y":770,"width":729,"height":11}},{"id":"85dc183b-118d-40e9-b7b3-8649a19d84e5","block_type":"box","text":"statement is filed with the SEC, it may be amended or withdrawn, and the combined prospectus/proxy","page_number":15,"box":{"x":116,"y":785,"width":733,"height":12}},{"id":"c73a5ee3-0c75-4db9-a562-86af2762affe","block_type":"box","text":"statement will not be distributed to shareholders unless and until the registration statement becomes","page_number":15,"box":{"x":116,"y":801,"width":720,"height":11}},{"id":"0f2e5564-a607-4c7a-914f-192632efdc40","block_type":"box","text":"effective. Investors are urged to read the materials and any other relevant documents when they become","page_number":15,"box":{"x":116,"y":816,"width":747,"height":12}},{"id":"af377c45-9806-452d-8fdb-d75da3aefe14","block_type":"box","text":"available because they will contain important information about the Reorganization. After they are filed,","page_number":15,"box":{"x":116,"y":832,"width":756,"height":11}},{"id":"aa08bbc0-1044-465f-9f1a-5a4d4437b993","block_type":"box","text":"free copies of the materials will be available on the SEC’s web site at www.sec.gov. These materials also","page_number":15,"box":{"x":116,"y":847,"width":745,"height":12}},{"id":"eb0cdf18-06d2-44f9-aa61-a1806459ae46","block_type":"box","text":"will be available at www.blackrock.com, and a paper copy of these materials can be obtained at no charge","page_number":15,"box":{"x":116,"y":863,"width":763,"height":11}},{"id":"7bc04a62-2514-45f1-8c76-c71929fb9ba0","block_type":"box","text":"by calling (800) 441 7762.","page_number":15,"box":{"x":116,"y":878,"width":186,"height":12}},{"id":"326b8e52-9495-4013-a71a-e67fc0eba112","block_type":"box","text":"8","page_number":15,"box":{"x":496,"y":909,"width":7,"height":9}},{"id":"711e6109-cb17-41fd-838f-62b70947b5c6","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":15,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"f6853560-c7b4-4321-9cf1-d5733ae80d4f","block_type":"box","text":"This communication is for informational purposes only and does not constitute an offer of any securities","page_number":16,"box":{"x":116,"y":87,"width":750,"height":12}},{"id":"32c00feb-daac-4ceb-8a34-e4f96d2e7560","block_type":"box","text":"for sale. No offer of securities will be made except pursuant to a prospectus meeting the requirements of","page_number":16,"box":{"x":116,"y":103,"width":749,"height":12}},{"id":"27710939-0392-4383-a2a6-0763d9db5dc1","block_type":"box","text":"Section 10 of the Securities Act of 1933.","page_number":16,"box":{"x":116,"y":118,"width":287,"height":10}},{"id":"a23c805f-638c-456f-b06f-8bab7cb5b304","block_type":"box","text":"Shareholders should retain this Supplement for future reference.","page_number":16,"box":{"x":267,"y":149,"width":470,"height":12}},{"id":"506dabb6-6340-4573-b289-cbd939759aeb","block_type":"box","text":"PRSAI-ADVLCG-0926SUP","page_number":16,"box":{"x":116,"y":181,"width":197,"height":9}},{"id":"165e59ec-0e39-42ca-9a09-0fe0ef03bd65","block_type":"box","text":"9","page_number":16,"box":{"x":496,"y":909,"width":7,"height":9}},{"id":"bf2e5411-bdcd-4019-a6e3-b0cf6fd6fd3f","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":16,"box":{"x":636,"y":981,"width":177,"height":7}},{"id":"a0de96ac-bf2f-42ef-a0c4-5cfcf0b611e3","block_type":"box","text":"STATEMENT OF ADDITIONAL INFORMATION","page_number":17,"box":{"x":271,"y":83,"width":435,"height":11}},{"id":"6700dd32-d696-4c49-8373-2476089da58d","block_type":"box","text":"BlackRock Funds","page_number":17,"box":{"x":371,"y":120,"width":216,"height":14}},{"id":"5ffd3cd1-466e-49d7-ad0c-f34053086fec","block_type":"box","text":"SM","page_number":17,"box":{"x":589,"y":120,"width":19,"height":7}},{"id":"bb618e2e-1d4d-4e24-a7fc-2cfc20217208","block_type":"box","text":"BlackRock Advantage Large Cap Growth Fund","page_number":17,"box":{"x":321,"y":149,"width":336,"height":11}},{"id":"3b84e63c-9436-423a-88a0-cf7c1fa87b7c","block_type":"box","text":"100 Bellevue Parkway, Wilmington, Delaware 19809 • Phone No. (800) 441-7762","page_number":17,"box":{"x":118,"y":176,"width":742,"height":14}},{"id":"6e758557-4340-4023-9ff3-5cd052e017cf","block_type":"box","text":"This Statement of Additional Information of BlackRock Advantage Large Cap Growth Fund (the “Fund”), a","page_number":17,"box":{"x":101,"y":233,"width":802,"height":12}},{"id":"55a86827-39bc-4e67-b253-f2f6bd0be761","block_type":"box","text":"series of BlackRock Funds","page_number":17,"box":{"x":69,"y":249,"width":199,"height":9}},{"id":"4e7b7f9f-c382-4353-92b8-a489ab054082","block_type":"box","text":"SM","page_number":17,"box":{"x":269,"y":249,"width":12,"height":5}},{"id":"ab94de92-e6cc-493d-969b-6c206bda7b05","block_type":"box","text":"(the “Trust”), is not a prospectus and should be read in conjunction with the","page_number":17,"box":{"x":286,"y":248,"width":575,"height":12}},{"id":"9ad8b417-333e-4703-860f-49b4561b1a3f","block_type":"box","text":"Prospectuses of the Fund, dated September 24, 2026, as they may be amended or supplemented from time to","page_number":17,"box":{"x":70,"y":264,"width":836,"height":11}},{"id":"f86dc9f5-39b3-41fc-9749-2ff8d1220913","block_type":"box","text":"time (each, a “Prospectus” and together the “Prospectuses”), which have been filed with the Securities and","page_number":17,"box":{"x":69,"y":279,"width":809,"height":12}},{"id":"289c3d33-4b63-4fe1-b7fe-e08088a9b4c3","block_type":"box","text":"Exchange Commission (the “Commission” or the “SEC”) and can be obtained, without charge, by calling","page_number":17,"box":{"x":70,"y":294,"width":788,"height":12}},{"id":"d281790c-7276-4e6d-90fa-a75640810322","block_type":"box","text":"(800) 441-7762 or by writing to the Fund at the above address. Part I of this Statement of Additional","page_number":17,"box":{"x":69,"y":309,"width":762,"height":12}},{"id":"a90b12b8-d460-4a1e-9f57-a88e6373bfe6","block_type":"box","text":"Information and the portions of Part II of this Statement of Additional Information that relate to the Fund have","page_number":17,"box":{"x":70,"y":324,"width":838,"height":12}},{"id":"32d4e081-cdd1-46bf-b56a-b01da0e7c368","block_type":"box","text":"been incorporated by reference into the Fund’s Prospectuses. The portions of Part II of this Statement of","page_number":17,"box":{"x":70,"y":339,"width":793,"height":12}},{"id":"187943df-eee7-428c-9615-534d7776495e","block_type":"box","text":"Additional Information that do not relate to the Fund do not form a part of the Fund’s Statement of Additional","page_number":17,"box":{"x":68,"y":354,"width":832,"height":12}},{"id":"55ae0ec2-3c46-4dea-8569-7a5a57bf9244","block_type":"box","text":"Information, have not been incorporated by reference into the Fund’s Prospectuses and should not be relied","page_number":17,"box":{"x":70,"y":369,"width":821,"height":12}},{"id":"12f6d103-5a5a-46eb-a8a2-31473ec422c0","block_type":"box","text":"upon by investors in the Fund. The audited financial statements of the Fund are incorporated into this","page_number":17,"box":{"x":70,"y":385,"width":775,"height":11}},{"id":"7649a778-e14a-4798-8100-e9a8d9ba0a3d","block_type":"box","text":"Statement of Additional Information by reference to the Fund’s Annual Financial Statements and Additional","page_number":17,"box":{"x":69,"y":400,"width":820,"height":12}},{"id":"aefe8590-4f47-47b0-bcf6-ddb2ee1f9797","block_type":"box","text":"Information for the fiscal year ended May 31, 2026, as filed with the SEC on Form N-CSR (the “2026 Annual","page_number":17,"box":{"x":70,"y":415,"width":818,"height":12}},{"id":"5784db13-0221-4f4b-929d-9c8b1d22eb19","block_type":"box","text":"Financial Statements”). You may request a copy of the 2026 Annual Financial Statements at no charge by","page_number":17,"box":{"x":70,"y":430,"width":803,"height":12}},{"id":"05367e1d-1ada-4a3a-978e-c087d1a0470a","block_type":"box","text":"calling (800) 441-7762 between 8:00 a.m. to 6:00 p.m. Eastern time on any business day.","page_number":17,"box":{"x":69,"y":445,"width":679,"height":12}},{"id":"a668bb77-2f8a-471a-81b3-a96d566de569","block_type":"box","text":"References to the Investment Company Act of 1940, as amended (the “Investment Company Act”), or","page_number":17,"box":{"x":103,"y":468,"width":767,"height":12}},{"id":"a05b2197-5cba-43b2-bdda-a8dbf69912f6","block_type":"box","text":"other applicable law, will include any rules promulgated thereunder and any guidance, interpretations or","page_number":17,"box":{"x":69,"y":483,"width":796,"height":12}},{"id":"0af9c754-887a-46df-8b7d-568cfaa10bbe","block_type":"box","text":"modifications by the Commission, Commission staff or other authority with appropriate jurisdiction, including","page_number":17,"box":{"x":70,"y":498,"width":837,"height":12}},{"id":"40e38b5f-3946-49dd-973b-b2d265fba9b6","block_type":"box","text":"court interpretations, and exemptive, no-action or other relief or permission from the Commission,","page_number":17,"box":{"x":69,"y":513,"width":749,"height":12}},{"id":"db34e298-d361-4fae-9491-84dd5efd3dfc","block_type":"box","text":"Commission staff or other authority.","page_number":17,"box":{"x":70,"y":528,"width":274,"height":12}},{"id":"fcafc37d-3feb-4d6d-b994-a6b20c80ac74","block_type":"box","text":"Class","page_number":17,"box":{"x":69,"y":557,"width":31,"height":7}},{"id":"21857f45-9684-4689-81df-d3e59297ead8","block_type":"box","text":"Ticker Symbol","page_number":17,"box":{"x":827,"y":557,"width":82,"height":9}},{"id":"bd854194-44c7-4a3b-9662-511e0ce0741f","block_type":"box","text":"Investor A Shares","page_number":17,"box":{"x":70,"y":575,"width":124,"height":8}},{"id":"440a0f4e-f239-40cb-8de8-85dfeed00e3d","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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I-1","page_number":18,"box":{"x":70,"y":108,"width":839,"height":11}},{"id":"4b5406c7-afce-4fbd-b4d7-c2c4e92e02f4","block_type":"box","text":"Investment Restrictions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-6","page_number":18,"box":{"x":70,"y":125,"width":839,"height":9}},{"id":"798be430-cf9f-402d-b011-1940bc519637","block_type":"box","text":"Information on Trustees and Officers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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I-23","page_number":18,"box":{"x":545,"y":174,"width":364,"height":9}},{"id":"4aeb266d-a385-43e5-813c-36ef1f600127","block_type":"box","text":"Computation of Offering Price Per Share . . . . . . . . . . . . . . . . . . . .","page_number":18,"box":{"x":69,"y":190,"width":446,"height":11}},{"id":"6c83514a-1859-46b7-a414-0f8377ca870d","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-24","page_number":18,"box":{"x":521,"y":190,"width":388,"height":9}},{"id":"f29fc9e1-57d6-49b7-97b0-282906f0345c","block_type":"box","text":"Por tfolio Transactions and Brokerage . .","page_number":18,"box":{"x":69,"y":206,"width":283,"height":12}},{"id":"111a09bc-ed21-4dca-a6e5-033350720b0e","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-24","page_number":18,"box":{"x":358,"y":207,"width":551,"height":8}},{"id":"cd2fcb39-2687-4931-8077-032b2cbe4f0a","block_type":"box","text":"Additional Information. . . . . . . . . . . . . . . . . . .","page_number":18,"box":{"x":68,"y":223,"width":308,"height":9}},{"id":"cc178a3b-7cd9-4a86-ac56-c6e3b85efb67","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-26","page_number":18,"box":{"x":382,"y":223,"width":527,"height":9}},{"id":"4e270533-1e65-4bc9-aab1-d0213f05987d","block_type":"box","text":"Financial Statements","page_number":18,"box":{"x":70,"y":239,"width":148,"height":9}},{"id":"f101c6e6-cfcc-4e2f-84b4-508e0f85b45d","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-27","page_number":18,"box":{"x":227,"y":239,"width":681,"height":9}},{"id":"05d6f245-f200-4e48-92b6-e9d96bbc354a","block_type":"box","text":"PART II","page_number":18,"box":{"x":69,"y":271,"width":52,"height":9}},{"id":"9456b141-24f8-4a40-917c-a29a907f0d6b","block_type":"box","text":"Investment Risks and Considerations . . . . . . . .","page_number":18,"box":{"x":70,"y":287,"width":330,"height":9}},{"id":"a43b569c-95c9-4595-a534-61dd27084573","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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I","page_number":18,"box":{"x":244,"y":369,"width":627,"height":9}},{"id":"15f83cea-7f81-4e51-b3fe-6fdc7befd17d","block_type":"box","text":"I-118","page_number":18,"box":{"x":874,"y":369,"width":35,"height":9}},{"id":"f293afb5-0625-406a-a4d9-5c3818c1b560","block_type":"box","text":"Pricing of Shares","page_number":18,"box":{"x":69,"y":385,"width":119,"height":12}},{"id":"4315a00d-1385-4c39-a775-f058a54cd532","block_type":"box","text":".................................................................................. 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The","page_number":23,"box":{"x":69,"y":726,"width":802,"height":11}},{"id":"e932cf39-f764-4cc5-b9bc-06a2fd98d2ff","block_type":"box","text":"CFTC also subjects advisers to registered investment companies to regulation by the CFTC if the registered","page_number":23,"box":{"x":69,"y":741,"width":762,"height":12}},{"id":"7d7cf2d6-6776-4d88-9d0c-e9791f5802f8","block_type":"box","text":"investment company invests in one or more commodity pools.","page_number":23,"box":{"x":70,"y":757,"width":439,"height":11}},{"id":"665bc3a1-b136-4ce1-91ad-c0421b6c492e","block_type":"box","text":"To the extent the Fund uses CFTC Derivatives, it intends to do so below such prescribed levels and will not","page_number":23,"box":{"x":101,"y":779,"width":760,"height":11}},{"id":"5f3e6265-c4bc-4b77-b7df-68f16de00222","block_type":"box","text":"market itself as a “commodity pool” or a vehicle for trading such instruments.","page_number":23,"box":{"x":69,"y":794,"width":554,"height":12}},{"id":"d5091f79-c1bf-4b4a-951f-3453aa3dbed7","block_type":"box","text":"The Fund may have investments in “underlying funds” (and such underlying funds themselves may invest in","page_number":23,"box":{"x":101,"y":817,"width":764,"height":11}},{"id":"d9172784-9636-4426-b246-a753f7df5b20","block_type":"box","text":"underlying funds) not advised by BlackRock (which for purposes of the no-action letter referenced below may include","page_number":23,"box":{"x":69,"y":832,"width":826,"height":11}},{"id":"4f9a8bfe-c91c-47e5-91e4-a7f39f1af783","block_type":"box","text":"cer tain securitized vehicles, mor tgage real estate investment trusts and/or investment companies that may invest in","page_number":23,"box":{"x":69,"y":847,"width":834,"height":11}},{"id":"b754ea48-0545-4aeb-a797-9279fd2c8c02","block_type":"box","text":"CFTC Derivatives), and therefore may be viewed by the CFTC as a commodity pool. BlackRock has no transparency","page_number":23,"box":{"x":69,"y":862,"width":815,"height":11}},{"id":"231ed9d4-db45-4575-8dff-932efb636ed0","block_type":"box","text":"into the holdings of these underlying funds because they are not advised by BlackRock. To address this issue of lack","page_number":23,"box":{"x":70,"y":877,"width":831,"height":12}},{"id":"e13e044a-7d06-4f65-8228-730d2036054f","block_type":"box","text":"of transparency, the CFTC staff issued a no-action letter on November 29, 2012 permitting the adviser of a fund that","page_number":23,"box":{"x":69,"y":892,"width":832,"height":12}},{"id":"c9b98797-337f-4799-9267-72d7cb0f2317","block_type":"box","text":"invests in such underlying funds and that would otherwise have filed a claim of exclusion pursuant to Rule 4.5 to","page_number":23,"box":{"x":70,"y":908,"width":803,"height":11}},{"id":"a7ed9c01-c33c-4a59-8570-584e52544084","block_type":"box","text":"I-5","page_number":23,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"310fe9ec-ad4a-4b6d-865b-65b89f65fe9a","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":23,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ffd166cb-2e6d-41fe-bbeb-587bf1e2aa02","block_type":"box","text":"delay registration as a “commodity pool operator” until six months from the date on which the CFTC issues additional","page_number":24,"box":{"x":69,"y":45,"width":836,"height":11}},{"id":"1efd58b1-58be-408e-bf1b-4f5ad4122b66","block_type":"box","text":"guidance on the treatment of CFTC Derivatives held by underlying funds. BlackRock, the adviser of the Fund, has filed","page_number":24,"box":{"x":68,"y":60,"width":837,"height":11}},{"id":"219ac573-3cd0-4e85-8aa8-89335ba59bdf","block_type":"box","text":"a claim with the CFTC for the Fund to rely on this no-action relief. Accordingly, BlackRock is not subject to registration","page_number":24,"box":{"x":69,"y":75,"width":833,"height":11}},{"id":"606c07be-9afb-4c53-a6c6-f2d428b2d2be","block_type":"box","text":"or regulation as a “commodity pool operator” under the Commodity Exchange Act in respect of the Fund.","page_number":24,"box":{"x":69,"y":90,"width":743,"height":11}},{"id":"90e8aa76-21ec-415b-94b0-6b548c9990bf","block_type":"box","text":"II. Investment Restrictions","page_number":24,"box":{"x":69,"y":120,"width":194,"height":9}},{"id":"b1e59009-82f0-4796-a21a-8c26dae160bc","block_type":"box","text":"The Fund has adopted restrictions and policies relating to the investment of the Fund’s assets and its activities.","page_number":24,"box":{"x":101,"y":143,"width":800,"height":11}},{"id":"eed1bdec-6288-4000-937a-65c873ae226d","block_type":"box","text":"Cer tain of the restrictions are fundamental policies of the Fund and may not be changed without the approval of the","page_number":24,"box":{"x":69,"y":158,"width":825,"height":11}},{"id":"18400bad-6b0b-4d1f-8c0b-54da621835f7","block_type":"box","text":"holders of a majority of the Fund’s outstanding voting securities (which for this purpose and under the Investment","page_number":24,"box":{"x":69,"y":173,"width":809,"height":11}},{"id":"9f13fdea-bfe8-48ea-b5ed-12eae4537afe","block_type":"box","text":"Company Act means the lesser of (i) 67% of the shares represented at a meeting at which more than 50% of the","page_number":24,"box":{"x":69,"y":188,"width":803,"height":12}},{"id":"31d6f828-c889-44d1-a136-9a387f63f924","block_type":"box","text":"outstanding shares are represented or (ii) more than 50% of the outstanding shares).","page_number":24,"box":{"x":69,"y":203,"width":608,"height":12}},{"id":"03bed09c-ab9b-4f94-8d4c-86de82e5570f","block_type":"box","text":"Under these fundamental investment restrictions, the Fund may not:","page_number":24,"box":{"x":102,"y":226,"width":485,"height":11}},{"id":"2f51e24d-325a-4f92-832f-9d3683dfc7d8","block_type":"box","text":"1. Purchase securities of any one issuer (other than securities issued or guaranteed by the U.S.","page_number":24,"box":{"x":135,"y":249,"width":682,"height":11}},{"id":"130dbb65-09be-41cd-81a8-f38df18d86fd","block_type":"box","text":"Government, its agencies or instrumentalities or cer tificates of deposit for any such securities) if more than 5%","page_number":24,"box":{"x":102,"y":264,"width":794,"height":11}},{"id":"a989caf9-3f07-4ee1-990b-9bb0bba69f79","block_type":"box","text":"of the value of the Fund’s total assets would (taken at current value) be invested in the securities of such issuer,","page_number":24,"box":{"x":102,"y":279,"width":804,"height":11}},{"id":"5bb9831a-cb6f-4092-8f96-fb6d2c436392","block_type":"box","text":"or more than 10% of the issuer’s outstanding voting securities would be owned by the Fund or the Trust, except","page_number":24,"box":{"x":102,"y":294,"width":795,"height":11}},{"id":"f154e5ed-d379-4191-aba7-8512d00b1d46","block_type":"box","text":"that up to 25% of the value of the Fund’s total assets may (taken at current value) be invested without regard to","page_number":24,"box":{"x":101,"y":309,"width":800,"height":11}},{"id":"704f7cfd-50d3-4957-91ee-66d4a7a3ac63","block_type":"box","text":"these limitations. For purposes of this limitation, a security is considered to be issued by the entity (or entities)","page_number":24,"box":{"x":101,"y":324,"width":793,"height":11}},{"id":"08807a3d-e70e-4bd5-96d5-c9ba1796f13d","block_type":"box","text":"whose assets and revenues back the security. A guarantee of a security shall not be deemed to be a security","page_number":24,"box":{"x":101,"y":339,"width":779,"height":12}},{"id":"2472bee5-a519-4d66-9a6d-ccc4c6f08fb9","block_type":"box","text":"issued by the guarantors when the value of all securities issued and guaranteed by the guarantor, and owned by","page_number":24,"box":{"x":102,"y":355,"width":799,"height":11}},{"id":"2f32ce3e-3837-492b-ad63-24efe3f5bc2d","block_type":"box","text":"the Fund, does not exceed 10% of the value of the Fund’s total assets.","page_number":24,"box":{"x":101,"y":370,"width":506,"height":10}},{"id":"b59f02a2-3a23-4d56-964d-ee435dfa5636","block_type":"box","text":"2. Purchase any securities which would cause 25% or more of the value of the Fund’s total assets at the","page_number":24,"box":{"x":134,"y":392,"width":747,"height":12}},{"id":"efa97d5e-83c6-4ae4-bea0-6825e2eb0d6f","block_type":"box","text":"time of purchase to be invested in the securities of one or more issuers conducting their principal business","page_number":24,"box":{"x":101,"y":407,"width":766,"height":12}},{"id":"2b71c4ff-beca-4c3d-88f3-fac63d14e1f4","block_type":"box","text":"activities in the same industry, provided that (a) there is no limitation with respect to (i) instruments issued or","page_number":24,"box":{"x":102,"y":423,"width":784,"height":11}},{"id":"623297d1-b037-400a-8093-8813a45fe2e2","block_type":"box","text":"guaranteed by the United States and tax exempt instruments issued by any state, territory or possession of the","page_number":24,"box":{"x":101,"y":438,"width":797,"height":11}},{"id":"e3b2f9d9-4843-43f9-87cb-898249540795","block_type":"box","text":"United States, the District of Columbia or any of their authorities, agencies, instrumentalities or political","page_number":24,"box":{"x":102,"y":453,"width":740,"height":11}},{"id":"6f08b095-e412-4764-bfc4-fdd95e13738d","block_type":"box","text":"subdivisions, and (ii) repurchase agreements secured by the instruments described in clause (i); (b) wholly","page_number":24,"box":{"x":102,"y":468,"width":763,"height":11}},{"id":"4b549da3-f252-438c-ab59-937201b8f642","block_type":"box","text":"owned finance companies will be considered to be in the industries of their parents if their activities are primarily","page_number":24,"box":{"x":102,"y":483,"width":806,"height":11}},{"id":"f9a1a7d3-3572-4924-806e-aac40a4ffd92","block_type":"box","text":"related to financing the activities of the parents; and (c) utilities will be divided according to their services; for","page_number":24,"box":{"x":102,"y":498,"width":781,"height":11}},{"id":"8c720bcd-03ba-4b1f-ad3f-9b8d34c17fc5","block_type":"box","text":"example, gas, gas transmission, electric and gas, electric and telephone will each be considered a separate","page_number":24,"box":{"x":101,"y":514,"width":772,"height":11}},{"id":"a35bed5b-7305-4294-bece-1d59a6a14932","block_type":"box","text":"industry.","page_number":24,"box":{"x":102,"y":529,"width":59,"height":11}},{"id":"53461f4c-9e22-4851-a9d6-0b06fd213ee8","block_type":"box","text":"3. Borrow money or issue senior securities, except that the Fund may borrow from banks and enter into","page_number":24,"box":{"x":134,"y":551,"width":738,"height":11}},{"id":"882696ea-1d86-4329-b547-359aa8b9c41c","block_type":"box","text":"reverse repurchase agreements for temporary purposes in amounts up to one-third of the value of its total","page_number":24,"box":{"x":102,"y":566,"width":757,"height":11}},{"id":"19101266-dc4f-48dd-b234-0f627933ce64","block_type":"box","text":"assets at the time of such borrowing; or mor tgage, pledge or hypothecate any assets, except in connection with","page_number":24,"box":{"x":102,"y":581,"width":797,"height":12}},{"id":"a8d498da-7299-4952-8926-deeb572c0e4b","block_type":"box","text":"any such borrowing and then in amounts not in excess of one-third of the value of the Fund’s total assets at the","page_number":24,"box":{"x":102,"y":596,"width":798,"height":12}},{"id":"7776c31b-8ec9-4024-95a9-cc1ddb7d1fc4","block_type":"box","text":"time of such borrowing. The Fund will not purchase securities while its aggregate borrowings (including reverse","page_number":24,"box":{"x":101,"y":612,"width":789,"height":11}},{"id":"71d51d4a-024f-45c2-8489-f9be3e91482b","block_type":"box","text":"repurchase agreements and borrowings from banks) in excess of 5% of its total assets are outstanding.","page_number":24,"box":{"x":102,"y":627,"width":741,"height":11}},{"id":"6d106617-a000-4fe1-8214-19ec1e38c0a0","block_type":"box","text":"Securities held in escrow or separate accounts in connection with the Fund’s investment practices are not","page_number":24,"box":{"x":102,"y":642,"width":757,"height":11}},{"id":"f4fc4e77-0503-4db0-8ac8-766334014760","block_type":"box","text":"deemed to be pledged for purposes of this limitation.","page_number":24,"box":{"x":101,"y":657,"width":379,"height":11}},{"id":"35a0bd14-9c6e-41b6-b3d5-58f6c008903d","block_type":"box","text":"4. Purchase or sell real estate, except that the Fund may purchase securities of issuers which deal in real","page_number":24,"box":{"x":134,"y":680,"width":755,"height":11}},{"id":"cc87666b-4b1c-4d9e-be75-012222e77fe1","block_type":"box","text":"estate and may purchase securities which are secured by interests in real estate.","page_number":24,"box":{"x":101,"y":695,"width":582,"height":11}},{"id":"fabd65eb-a303-473e-832b-9ce176689b1f","block_type":"box","text":"5. Acquire any other investment company or investment company security except in connection with a","page_number":24,"box":{"x":134,"y":718,"width":723,"height":11}},{"id":"40f35186-bee6-4a71-885d-dff07bf519cb","block_type":"box","text":"merger, consolidation, reorganization or acquisition of assets or where otherwise permitted by the Investment","page_number":24,"box":{"x":102,"y":732,"width":784,"height":12}},{"id":"137c02b1-d16e-434c-ada0-03d01ff5ccb1","block_type":"box","text":"Company Act.","page_number":24,"box":{"x":102,"y":748,"width":95,"height":11}},{"id":"acec54ff-4476-44f9-978f-d888f94cdd08","block_type":"box","text":"6. Act as an underwriter of securities within the meaning of the Securities Act of 1933, as amended, except","page_number":24,"box":{"x":134,"y":770,"width":771,"height":12}},{"id":"0d5663d2-8000-4bfc-b494-51d25741bf24","block_type":"box","text":"to the extent that the purchase of obligations directly from the issuer thereof, or the disposition of securities, in","page_number":24,"box":{"x":101,"y":785,"width":797,"height":12}},{"id":"a92a1d68-ea2d-4a89-a5e8-9ddf6a208838","block_type":"box","text":"accordance with the Fund’s investment objective, policies and limitations may be deemed to be underwriting.","page_number":24,"box":{"x":102,"y":801,"width":777,"height":11}},{"id":"d4218ce4-30f1-4058-aef5-17dd4451ef67","block_type":"box","text":"7. Write or sell put options, call options, straddles, spreads, or any combination thereof, except for","page_number":24,"box":{"x":135,"y":823,"width":705,"height":11}},{"id":"26782441-1f0e-4df2-9563-5ec4f126a27d","block_type":"box","text":"transactions in options on securities and securities indices, futures contracts and options on futures contracts.","page_number":24,"box":{"x":101,"y":838,"width":794,"height":11}},{"id":"f4aa8f82-9ad6-419f-8f40-6fe2713bd832","block_type":"box","text":"8. Purchase securities of companies for the purpose of exercising control.","page_number":24,"box":{"x":134,"y":861,"width":527,"height":11}},{"id":"a510c547-2fa8-4332-85d9-1d09ba42baf0","block_type":"box","text":"9. Purchase securities on margin, make shor t sales of securities or maintain a shor t position, except that","page_number":24,"box":{"x":134,"y":884,"width":757,"height":11}},{"id":"c420a45f-bb1d-44e6-b526-e33565d84c22","block_type":"box","text":"(a) this investment limitation shall not apply to the Fund’s transactions in futures contracts and related options","page_number":24,"box":{"x":102,"y":899,"width":791,"height":11}},{"id":"0c8fe041-2fd6-4ac2-9e45-0e9d302ee31b","block_type":"box","text":"I-6","page_number":24,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"1cf1eb64-a9c5-4405-9a8c-bc07efd7e398","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":24,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f34a3617-dbbc-4ce8-acdd-4786ea9c8cfb","block_type":"box","text":"or the Fund’s sale of securities shor t against the box, and (b) the Fund may obtain shor t-term credit as may be","page_number":25,"box":{"x":102,"y":45,"width":790,"height":11}},{"id":"3125a6fd-fb6b-4715-80ae-f47881d8efb1","block_type":"box","text":"necessary for the clearance of purchases and sales of por tfolio securities.","page_number":25,"box":{"x":102,"y":60,"width":531,"height":11}},{"id":"6a8fb108-d04e-417f-8b5d-8e09a1085c74","block_type":"box","text":"10. Purchase or sell commodity contracts, or invest in oil, gas or mineral exploration or development","page_number":25,"box":{"x":135,"y":83,"width":716,"height":11}},{"id":"5d26c637-004c-4892-9c1a-b92ffcd4e661","block_type":"box","text":"programs, except that the Fund may, to the extent appropriate to its investment policies, purchase securities of","page_number":25,"box":{"x":102,"y":98,"width":795,"height":11}},{"id":"00da268a-1e10-40c8-a41c-9ecfa1939ed7","block_type":"box","text":"companies engaging in whole or in par t in such activities and may enter into futures contracts and related","page_number":25,"box":{"x":101,"y":113,"width":755,"height":11}},{"id":"d4d81c9b-a04e-41da-83a8-e38af6292756","block_type":"box","text":"options.","page_number":25,"box":{"x":102,"y":128,"width":55,"height":11}},{"id":"6cab859e-8780-4994-8cb5-80c933ce1596","block_type":"box","text":"11. Make loans, except that the Fund may purchase and hold debt instruments and enter into repurchase","page_number":25,"box":{"x":135,"y":151,"width":754,"height":11}},{"id":"16ca1635-d9a3-45ad-b3bb-5e5e9979045f","block_type":"box","text":"agreements in accordance with its investment objective and policies and may lend por tfolio securities.","page_number":25,"box":{"x":102,"y":166,"width":729,"height":11}},{"id":"abf888b8-3ac5-455e-bb19-0dde9422e422","block_type":"box","text":"12. Purchase or sell commodities except that the Fund may, to the extent appropriate to its investment","page_number":25,"box":{"x":135,"y":188,"width":735,"height":11}},{"id":"e52dcb83-5618-4884-bb00-03f266e6e42c","block_type":"box","text":"policies, purchase securities of companies engaging in whole or in par t in such activities, may engage in","page_number":25,"box":{"x":102,"y":203,"width":744,"height":12}},{"id":"a366ea30-f988-49a6-8272-9c65e2f6c6f2","block_type":"box","text":"currency transactions and may enter into futures contracts and related options.","page_number":25,"box":{"x":101,"y":218,"width":565,"height":12}},{"id":"86cf15d7-7730-4a8a-a9ab-1feb1611bfde","block_type":"box","text":"Notations Regarding the Fund’s Fundamental Investment Restrictions","page_number":25,"box":{"x":102,"y":241,"width":494,"height":11}},{"id":"970865c4-8948-48a3-85e3-c16e5effdfc3","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":25,"box":{"x":101,"y":264,"width":799,"height":11}},{"id":"e1684519-d51a-4983-970a-cc8d47d5532f","block_type":"box","text":"subject to change without shareholder approval.","page_number":25,"box":{"x":69,"y":279,"width":341,"height":11}},{"id":"1ea725fd-85eb-48a8-9ecc-3970b8f1b815","block_type":"box","text":"For purposes of investment restriction no. 2 above, with respect to the Fund’s industry classifications, the Fund","page_number":25,"box":{"x":102,"y":302,"width":796,"height":11}},{"id":"c05cada5-890b-4060-8fe3-1a11ef3cac58","block_type":"box","text":"currently utilizes any one or more of the industry sub-classifications used by one or more widely recognized market","page_number":25,"box":{"x":69,"y":317,"width":817,"height":11}},{"id":"47d2c88c-64aa-4ba6-806e-0b905436c3a0","block_type":"box","text":"indexes or rating group indexes, and/or as defined by Fund management. The policy also will be interpreted to give","page_number":25,"box":{"x":70,"y":332,"width":817,"height":11}},{"id":"9ccf8efe-26a6-496d-8e9a-bdcaad24fc5f","block_type":"box","text":"broad authority to the Fund as to how to classify issuers within or among industries.","page_number":25,"box":{"x":69,"y":347,"width":597,"height":11}},{"id":"d8fa642b-8f46-47a7-8627-7dee9352a1cf","block_type":"box","text":"With respect to the fundamental policy relating to issuing senior securities above, the Investment Company Act,","page_number":25,"box":{"x":101,"y":370,"width":795,"height":11}},{"id":"d778be47-79ef-49af-a002-ccbee8a45bc2","block_type":"box","text":"including the rules and regulations thereunder, generally prohibits the Fund from issuing senior securities (other than","page_number":25,"box":{"x":70,"y":385,"width":832,"height":11}},{"id":"21721ede-f738-494c-b2c6-83e01c8012e6","block_type":"box","text":"cer tain temporary borrowings) unless immediately after the issuance the Fund has satisfied an asset coverage","page_number":25,"box":{"x":69,"y":400,"width":790,"height":11}},{"id":"b566677c-0654-4a9c-af96-ea7109846ae1","block_type":"box","text":"requirement with respect to senior securities representing indebtedness prescribed by the Investment Company Act.","page_number":25,"box":{"x":69,"y":415,"width":828,"height":11}},{"id":"12c51426-cca5-4c88-8353-e4b264b28807","block_type":"box","text":"Cer tain trading practices and investments, such as derivatives transactions, may be treated as senior securities.","page_number":25,"box":{"x":69,"y":430,"width":805,"height":11}},{"id":"5f3efd9e-be62-4df7-8f4b-613b83c6b678","block_type":"box","text":"Prior to the adoption and implementation of Rule 18f-4 under the Investment Company Act, when the Fund engaged in","page_number":25,"box":{"x":69,"y":445,"width":839,"height":12}},{"id":"ddb7c31c-c4b5-45ff-a9c2-965087756d4c","block_type":"box","text":"a derivatives transaction that creates future payment obligations, consistent with SEC staff guidance and","page_number":25,"box":{"x":69,"y":460,"width":749,"height":12}},{"id":"d6d73924-2724-4da9-b9b6-f81188530f0f","block_type":"box","text":"interpretations, the Fund was permitted to segregate or earmark liquid assets, or enter into an offsetting position, in","page_number":25,"box":{"x":70,"y":475,"width":830,"height":12}},{"id":"9d5c5e45-fba8-4f30-8fd1-c013d4e570da","block_type":"box","text":"an amount at least equal to the Fund’s exposure, on a mark-to-market basis, to the transaction, instead of meeting","page_number":25,"box":{"x":69,"y":491,"width":823,"height":11}},{"id":"88c005ea-7798-4b8c-aa09-c1cdcd548913","block_type":"box","text":"the asset coverage requirement with respect to senior securities prescribed by the Investment Company Act. The SEC","page_number":25,"box":{"x":68,"y":506,"width":840,"height":11}},{"id":"efd3c667-abb2-4be1-9e81-b747b104d75e","block_type":"box","text":"staff guidance and interpretations were rescinded in connection with the adoption of Rule 18f-4, and the Fund now","page_number":25,"box":{"x":69,"y":521,"width":817,"height":11}},{"id":"d6a9fa0a-2f06-4c91-8321-b861de7bdfaf","block_type":"box","text":"complies with Rule 18f-4 with respect to its derivatives transactions. Thus, the fundamental policy relating to issuing","page_number":25,"box":{"x":69,"y":536,"width":831,"height":11}},{"id":"61df880d-bb0d-4088-96c2-9891e7c76e10","block_type":"box","text":"senior securities above will not restrict the Fund from entering into derivatives transactions that are treated as senior","page_number":25,"box":{"x":69,"y":551,"width":836,"height":11}},{"id":"58b66a3c-0de4-4fe2-ad8b-1d603fd7a5fc","block_type":"box","text":"securities so long as the Fund complies with Rule 18f-4 with respect to such derivatives transactions.","page_number":25,"box":{"x":69,"y":566,"width":724,"height":11}},{"id":"2cd16086-0ca4-4fbc-8784-cfa1bcd03556","block_type":"box","text":"While cer tain swaps are now considered commodity interests for purposes of the Commodity Exchange Act and","page_number":25,"box":{"x":101,"y":589,"width":793,"height":11}},{"id":"0659545b-35ed-4fb6-ad23-e72bbaea64b6","block_type":"box","text":"the rules thereunder, at the time of the Fund’s adoption of fundamental investment restrictions no. 7, 10 and 12","page_number":25,"box":{"x":68,"y":604,"width":806,"height":11}},{"id":"e72cd6be-2d14-4e13-b99e-3eb99b0ab24e","block_type":"box","text":"above, many swaps were treated as securities for purposes of the Fund’s compliance with applicable law.","page_number":25,"box":{"x":69,"y":619,"width":752,"height":11}},{"id":"3b63e5e7-14c1-4711-bf2a-a5bef6ebcf73","block_type":"box","text":"Accordingly, fundamental investment restriction no. 7, which does not restrict transactions in options on securities","page_number":25,"box":{"x":68,"y":634,"width":817,"height":12}},{"id":"5dc95371-3785-4316-a5bf-b5ca032d9eb4","block_type":"box","text":"and securities indices, and fundamental restrictions no. 10 and 12 are being interpreted to permit the Fund to","page_number":25,"box":{"x":69,"y":649,"width":787,"height":12}},{"id":"85110cce-d903-4089-87d5-94635126c66b","block_type":"box","text":"engage in transactions in swaps and options on swaps, as applicable, related to financial instruments, such as","page_number":25,"box":{"x":69,"y":664,"width":794,"height":12}},{"id":"67f6fc06-483e-439c-a25e-8d3ac5a1b4b0","block_type":"box","text":"securities, securities indices and currencies, but not to engage in transactions in swaps or options on swaps related","page_number":25,"box":{"x":69,"y":680,"width":831,"height":11}},{"id":"1286ff32-7448-40d2-b50b-16d38efea32a","block_type":"box","text":"to physical commodities, such as oil or metals.","page_number":25,"box":{"x":68,"y":695,"width":336,"height":11}},{"id":"dbf2acdf-543b-464a-b8f0-d798774b6091","block_type":"box","text":"Under its non-fundamental investment restrictions, which may be changed by the Board without shareholder","page_number":25,"box":{"x":102,"y":717,"width":768,"height":12}},{"id":"6418d46a-315e-45ea-b42a-b5c4676d9b53","block_type":"box","text":"approval, the Fund may not:","page_number":25,"box":{"x":69,"y":733,"width":197,"height":11}},{"id":"fe87826e-946b-4dae-beab-c9a19a65dc62","block_type":"box","text":"a. Purchase securities of other investment companies, except to the extent permitted by the Investment","page_number":25,"box":{"x":102,"y":755,"width":742,"height":11}},{"id":"4c2ee26a-be3a-4eba-ad57-7b4d76862ee0","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":25,"box":{"x":69,"y":770,"width":759,"height":12}},{"id":"34129c60-c504-4a0d-a6e4-8d5c1bbb28ea","block_type":"box","text":"investment company or registered unit investment trust, in reliance on Section 12(d)(1)(F) or (G) (the “fund of funds”","page_number":25,"box":{"x":70,"y":785,"width":829,"height":12}},{"id":"11bc8f87-b041-402c-b0fd-875679388dd4","block_type":"box","text":"provisions) of the Investment Company Act, at any time the Fund has knowledge that its shares are purchased by","page_number":25,"box":{"x":70,"y":801,"width":808,"height":11}},{"id":"03482df9-bfd0-4e4d-bd64-376c5a487690","block_type":"box","text":"another investment company investor in reliance on the provisions of subparagraph (G) of Section 12(d)(1).","page_number":25,"box":{"x":69,"y":816,"width":763,"height":11}},{"id":"81ac0f49-395e-4032-b82a-aa21e1f0752a","block_type":"box","text":"Unless otherwise indicated or with respect to policies adopted pursuant to Rule 35d-1 under the Investment","page_number":25,"box":{"x":102,"y":838,"width":771,"height":11}},{"id":"9e885636-7aba-4f3b-aa1d-6c4a3fb70879","block_type":"box","text":"Company Act, all limitations under the Fund’s fundamental or non-fundamental investment restrictions apply only at","page_number":25,"box":{"x":69,"y":853,"width":822,"height":12}},{"id":"9e7d539f-d782-435d-b45f-e8e0bf54c516","block_type":"box","text":"the time that a transaction is under taken. Any change in the percentage of the Fund’s assets invested in cer tain","page_number":25,"box":{"x":68,"y":869,"width":803,"height":11}},{"id":"45f0cb5f-9337-4e99-bd52-f242bcfa6aeb","block_type":"box","text":"securities or other instruments resulting from market fluctuations or other changes in the Fund’s total assets will not","page_number":25,"box":{"x":69,"y":884,"width":835,"height":11}},{"id":"171b003c-0ebf-4dad-8ec4-f612dc0739af","block_type":"box","text":"I-7","page_number":25,"box":{"x":481,"y":943,"width":16,"height":9}},{"id":"e36ff08c-3e45-4109-92a4-9a14632c54ee","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":25,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9c8870cf-f6db-4041-8600-3d601550d09d","block_type":"box","text":"require the Fund to dispose of an investment until BlackRock determines that it is practicable to sell or close out the","page_number":26,"box":{"x":69,"y":45,"width":833,"height":11}},{"id":"4873b2e6-209e-4f2d-8386-86e5794b5060","block_type":"box","text":"investment without undue market or tax consequences.","page_number":26,"box":{"x":70,"y":60,"width":393,"height":11}},{"id":"80cbbc3f-232a-448a-933d-a802ea776172","block_type":"box","text":"III. Information on Trustees and Officers","page_number":26,"box":{"x":69,"y":90,"width":290,"height":9}},{"id":"75f8a1fa-e2e7-44f1-a0b9-7175933107f2","block_type":"box","text":"The Board consists of fifteen individuals (each, a “Trustee”), thir teen of whom are not “interested persons” of","page_number":26,"box":{"x":101,"y":113,"width":788,"height":11}},{"id":"acd71542-2210-4aa4-bf74-374768d78b93","block_type":"box","text":"the Trust as defined in the Investment Company Act (the “Independent Trustees”). The registered investment","page_number":26,"box":{"x":68,"y":128,"width":779,"height":11}},{"id":"cae5095f-752f-43e5-890e-656543ceaf91","block_type":"box","text":"companies advised by the Manager or its affiliates (the “BlackRock-advised Funds”) are organized into the BlackRock","page_number":26,"box":{"x":69,"y":143,"width":837,"height":11}},{"id":"80446bea-ce48-4b99-adba-e293b27211f4","block_type":"box","text":"Multi-Asset Complex, the BlackRock Fixed-Income Complex, and the iShares Complex (each, a “BlackRock Fund","page_number":26,"box":{"x":70,"y":158,"width":793,"height":11}},{"id":"4b58b7f4-3df7-4970-b4e4-b7b0dabb0363","block_type":"box","text":"Complex”). The Trust is included in the BlackRock Fund Complex referred to as the BlackRock Multi-Asset Complex.","page_number":26,"box":{"x":69,"y":173,"width":822,"height":11}},{"id":"5f48874e-98a8-44f4-ad81-d329b12192a4","block_type":"box","text":"The Trustees also oversee as board members the operations of the other open-end registered investment companies","page_number":26,"box":{"x":68,"y":188,"width":837,"height":12}},{"id":"5c38c017-df67-46c1-b3cd-060493cbbb68","block_type":"box","text":"included in the BlackRock Multi-Asset Complex.","page_number":26,"box":{"x":70,"y":203,"width":335,"height":11}},{"id":"bc543734-c576-483d-ab4f-fedd68a75156","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":26,"box":{"x":101,"y":226,"width":769,"height":11}},{"id":"9645f233-5b38-49e9-893d-b3ac62dea69f","block_type":"box","text":"Independent Trustee, and the Chair of each Board committee (each, a “Committee”) is an Independent Trustee. The","page_number":26,"box":{"x":70,"y":241,"width":827,"height":11}},{"id":"f708e96b-ba16-4e32-acd5-f2f6e9bdccb7","block_type":"box","text":"Board has five standing Committees: an Audit Committee, a Governance and Nominating Committee, a Compliance","page_number":26,"box":{"x":70,"y":256,"width":821,"height":12}},{"id":"d65850ae-9907-424e-93c7-3f4fa311add8","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":26,"box":{"x":69,"y":271,"width":835,"height":12}},{"id":"25289b4f-24a9-44db-a896-7d93a1786407","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":26,"box":{"x":70,"y":286,"width":830,"height":12}},{"id":"77a99434-48ac-492f-af71-4c217e391ffb","block_type":"box","text":"Trustees generally between meetings. The Chair of each Committee per forms a similar role with respect to the","page_number":26,"box":{"x":68,"y":302,"width":789,"height":11}},{"id":"5384ddbb-b50f-4a56-b725-278f91536840","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":26,"box":{"x":69,"y":317,"width":810,"height":11}},{"id":"f73b4008-9b28-4777-b1f2-8ef64b7daf8f","block_type":"box","text":"delegated by the Board or the Committee from time to time. The Independent Trustees meet regularly outside the","page_number":26,"box":{"x":69,"y":332,"width":809,"height":11}},{"id":"3249bc6c-8176-49c3-84f8-7427ee7041fc","block_type":"box","text":"presence of Fund management, in executive session or with other service providers to the Fund. The Board has","page_number":26,"box":{"x":70,"y":347,"width":794,"height":11}},{"id":"09a1ca63-550f-4531-89f8-26f825b08ddc","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":26,"box":{"x":69,"y":362,"width":816,"height":11}},{"id":"dc6190da-f96f-462c-b5b7-ca39a5dcd3d9","block_type":"box","text":"Committee meets regularly to conduct the oversight functions delegated to that Committee by the Board and repor ts","page_number":26,"box":{"x":69,"y":377,"width":831,"height":12}},{"id":"e674f353-a7ef-4198-bfca-bc5899b69cf6","block_type":"box","text":"its findings to the Board. The Board and each standing Committee conduct annual assessments of their oversight","page_number":26,"box":{"x":70,"y":392,"width":811,"height":12}},{"id":"1b4cca43-58f5-4482-80e5-027425cadb5f","block_type":"box","text":"function and structure. The Board has determined that the Board’s leadership structure is appropriate because it","page_number":26,"box":{"x":68,"y":407,"width":809,"height":11}},{"id":"dcc13f5b-1afb-4473-b667-d8f893c32122","block_type":"box","text":"allows the Board to exercise independent judgment over management and to allocate areas of responsibility among","page_number":26,"box":{"x":69,"y":423,"width":825,"height":11}},{"id":"6b74c627-f2b4-46ae-ae76-c604d7b98c76","block_type":"box","text":"Committees and the full Board to enhance effective oversight.","page_number":26,"box":{"x":69,"y":438,"width":441,"height":11}},{"id":"bc893dd3-324f-48f0-bf3b-cd74500a188a","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":26,"box":{"x":101,"y":460,"width":777,"height":12}},{"id":"95137d57-5351-44a3-ab94-d0c834339c39","block_type":"box","text":"overseeing the Manager, other service providers, the operations of the Fund and associated risks in accordance with","page_number":26,"box":{"x":69,"y":475,"width":832,"height":12}},{"id":"ec2cfc2e-8d4b-45d9-a769-e1b900980215","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":26,"box":{"x":68,"y":491,"width":820,"height":11}},{"id":"4168d2d9-9e6e-48f4-b815-620d90ac3e02","block_type":"box","text":"investment objective and strategies. The Board reviews, on an ongoing basis, the Fund’s per formance, operations","page_number":26,"box":{"x":70,"y":506,"width":812,"height":11}},{"id":"40891196-2b72-401e-8cea-841a87263fac","block_type":"box","text":"and investment strategies and techniques. The Board also conducts reviews of the Manager and its role in running","page_number":26,"box":{"x":69,"y":521,"width":819,"height":11}},{"id":"f570f8aa-cac3-4636-9bc1-71919c379efc","block_type":"box","text":"the operations of the Fund.","page_number":26,"box":{"x":68,"y":536,"width":192,"height":11}},{"id":"18093da4-1c88-493f-bad2-9627926f86af","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":26,"box":{"x":102,"y":559,"width":785,"height":11}},{"id":"6fed231b-3778-484c-9dfa-8d4d603069a3","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":26,"box":{"x":69,"y":574,"width":828,"height":11}},{"id":"6b970ba7-21df-42a5-a060-f6905411f0f0","block_type":"box","text":"subject to a number of risks, including investment, compliance, operational and valuation risks, among others. While","page_number":26,"box":{"x":69,"y":589,"width":832,"height":11}},{"id":"94eed567-a77a-47dc-832c-0b1022d58071","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":26,"box":{"x":68,"y":604,"width":820,"height":11}},{"id":"5fad401d-6603-4bd9-bfbe-c4d12558cbe9","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":26,"box":{"x":70,"y":619,"width":811,"height":11}},{"id":"693d9660-8232-47f2-9e5d-44b254aeeb69","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":26,"box":{"x":70,"y":634,"width":767,"height":12}},{"id":"21a779bf-23ae-435c-b078-b60735cf1562","block_type":"box","text":"activities. The Board, directly or through a Committee, also reviews repor ts from, among others, management, the","page_number":26,"box":{"x":69,"y":649,"width":815,"height":12}},{"id":"9cb7c9d0-cefe-4e66-a81e-d5dafd6f0544","block_type":"box","text":"independent registered public accounting firm for the Fund, sub-advisers and internal auditors for the investment","page_number":26,"box":{"x":70,"y":664,"width":803,"height":12}},{"id":"68c5ab97-0ab6-49f2-9012-e09d609d626e","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":26,"box":{"x":69,"y":680,"width":840,"height":11}},{"id":"4e10137d-a962-4f2f-b827-addbd3530aca","block_type":"box","text":"risk functions. The Committee system facilitates the timely and efficient consideration of matters by the Trustees,","page_number":26,"box":{"x":69,"y":695,"width":812,"height":11}},{"id":"910f6f81-1709-4a74-ba78-ad91e4363515","block_type":"box","text":"and facilitates effective oversight of compliance with legal and regulatory requirements and of the Fund’s activities","page_number":26,"box":{"x":69,"y":710,"width":817,"height":11}},{"id":"674094e9-5e17-4d31-9842-3e21e7ce5fd7","block_type":"box","text":"and associated risks. The Board has appointed a Chief Compliance Officer, who oversees the implementation and","page_number":26,"box":{"x":69,"y":725,"width":812,"height":11}},{"id":"d27ae31b-8f6d-4176-a8cf-3f16795f8e20","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":26,"box":{"x":68,"y":740,"width":818,"height":11}},{"id":"b3c30d92-c50b-43c9-85cb-2964ab212daa","block_type":"box","text":"its service providers. The Independent Trustees have engaged independent legal counsel to assist them in","page_number":26,"box":{"x":70,"y":755,"width":759,"height":11}},{"id":"c98887d2-96a5-4cd6-b35d-80bd3a8f9f48","block_type":"box","text":"per forming their oversight responsibilities.","page_number":26,"box":{"x":70,"y":770,"width":299,"height":12}},{"id":"2487a80c-6115-4637-9d29-9dcfae46ede2","block_type":"box","text":"Audit Committee.","page_number":26,"box":{"x":101,"y":793,"width":122,"height":9}},{"id":"c0b2b027-b9a1-48f0-87b6-192acf1e82e5","block_type":"box","text":"The members of the Audit Committee (the “Audit Committee”) are Henry R. Keizer (Chair), Neil","page_number":26,"box":{"x":229,"y":793,"width":673,"height":11}},{"id":"706b567f-366e-4748-ac8a-97f9f88fae14","block_type":"box","text":"A. Cotty, Jeffrey Jarczyk, Lori Richards, Kenneth L. Urish and Claire A. Walton, all of whom are Independent Trustees.","page_number":26,"box":{"x":68,"y":808,"width":831,"height":11}},{"id":"f1fdc165-5038-4759-8620-92d4cb073bf2","block_type":"box","text":"The principal responsibilities of the Audit Committee are to approve, and recommend to the full Board for approval,","page_number":26,"box":{"x":68,"y":823,"width":820,"height":11}},{"id":"13f67254-2261-4f5d-97f1-c3ee7f3b8300","block_type":"box","text":"the selection, retention, termination and compensation of the Fund’s independent registered public accounting firm","page_number":26,"box":{"x":68,"y":838,"width":823,"height":12}},{"id":"84669a6f-7f46-481c-8a66-07ea11a2f48d","block_type":"box","text":"(the “Independent Registered Public Accounting Firm”) and to oversee the Independent Registered Public Accounting","page_number":26,"box":{"x":69,"y":854,"width":830,"height":11}},{"id":"1f1b5fbc-7ef2-4f03-bd49-3cd5e1ad704a","block_type":"box","text":"Firm’s work. The Audit Committee’s responsibilities include, without limitation, to (1) evaluate the qualifications and","page_number":26,"box":{"x":70,"y":869,"width":825,"height":11}},{"id":"e56f8727-4cf7-4286-9db1-05f7b3436d5a","block_type":"box","text":"independence of the Independent Registered Public Accounting Firm; (2) approve all audit engagement terms and","page_number":26,"box":{"x":70,"y":884,"width":807,"height":11}},{"id":"9a283941-704d-4b1c-b6b7-bdca2957bb47","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":26,"box":{"x":68,"y":899,"width":781,"height":11}},{"id":"152aa2f8-3c0d-45e6-9d35-5ea386b9039d","block_type":"box","text":"I-8","page_number":26,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"5bab5248-0415-42ec-bfff-ccbf4b062f36","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":26,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"13a9efc6-f1b8-432a-acdf-48443b9efc87","block_type":"box","text":"statements; (4) review any issues raised by the Independent Registered Public Accounting Firm or Fund management","page_number":27,"box":{"x":69,"y":45,"width":834,"height":11}},{"id":"55e49b58-dad9-4192-b634-d02401777935","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":27,"box":{"x":69,"y":60,"width":838,"height":11}},{"id":"5cf53bdf-a074-4bca-9915-c6dc9779cdf9","block_type":"box","text":"and cer tain service providers; (5) oversee the per formance of the Fund’s Independent Registered Public Accounting","page_number":27,"box":{"x":69,"y":75,"width":825,"height":11}},{"id":"f4d4558c-3674-47a9-b587-93e828d08861","block_type":"box","text":"Firm; (6) review and discuss with management and the Fund’s Independent Registered Public Accounting Firm the","page_number":27,"box":{"x":70,"y":90,"width":809,"height":11}},{"id":"674cbd16-5db2-4997-92ad-73a603900805","block_type":"box","text":"per formance and findings of the Fund’s internal auditors; (7) discuss with Fund management its policies regarding","page_number":27,"box":{"x":70,"y":105,"width":815,"height":11}},{"id":"15a64bef-e0b9-4d13-a908-9e5f77d8f1a2","block_type":"box","text":"risk assessment and risk management as such matters relate to the Fund’s financial repor ting and controls;","page_number":27,"box":{"x":69,"y":120,"width":774,"height":12}},{"id":"ba5fd3f7-43d7-44ce-acbb-427c6502d920","block_type":"box","text":"(8) resolve any disagreements between Fund management and the Independent Registered Public Accounting Firm","page_number":27,"box":{"x":69,"y":135,"width":815,"height":12}},{"id":"52251725-c5c1-4142-ac81-fd2f898e16d9","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":27,"box":{"x":69,"y":150,"width":819,"height":12}},{"id":"26b97193-bb51-41e8-af2d-cf6ec1f90aa5","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":27,"box":{"x":69,"y":166,"width":812,"height":11}},{"id":"2e735392-0da1-4269-9a29-b3407d15721d","block_type":"box","text":"During the twelve months ended May 31, 2026, the Audit Committee met four times.","page_number":27,"box":{"x":70,"y":181,"width":605,"height":11}},{"id":"1e08141f-c66b-4ad7-8335-e7c9208effcc","block_type":"box","text":"Governance and Nominating Committee.","page_number":27,"box":{"x":102,"y":203,"width":286,"height":12}},{"id":"a92ebc15-152e-4918-97d9-e5c1ed0453e8","block_type":"box","text":"The members of the Governance and Nominating Committee (the","page_number":27,"box":{"x":394,"y":203,"width":464,"height":12}},{"id":"f63a5fa4-159f-417d-a586-767f16ccd400","block_type":"box","text":"“Governance Committee”) are Cynthia A. Montgomery (Chair), Christopher J. Ailman, Susan J. Car ter, Collette Chilton,","page_number":27,"box":{"x":70,"y":219,"width":838,"height":11}},{"id":"ba50bb4c-f435-4fcb-b74d-6065cefc6f40","block_type":"box","text":"Henry R. Keizer and Marc D. Stern, all of whom are Independent Trustees. The principal responsibilities of the","page_number":27,"box":{"x":70,"y":234,"width":784,"height":11}},{"id":"951959e8-e4eb-429b-a76c-cb7d50ad6e3d","block_type":"box","text":"Governance Committee are to (1) identify individuals qualified to serve as Independent Trustees of the Trust and","page_number":27,"box":{"x":69,"y":249,"width":803,"height":11}},{"id":"0def4361-c667-4681-9711-ba84e0fb4025","block_type":"box","text":"recommend Independent Trustee nominees for election by shareholders or appointment by the Board; (2) advise the","page_number":27,"box":{"x":69,"y":264,"width":829,"height":11}},{"id":"2f8877b1-1f3a-456a-9451-089a902c371f","block_type":"box","text":"Board with respect to Board composition, procedures and committees (other than the Audit Committee); (3) oversee","page_number":27,"box":{"x":70,"y":279,"width":828,"height":11}},{"id":"0541fdea-d0e9-45f1-bf64-47b988a04213","block_type":"box","text":"periodic self-assessments of the Board and committees of the Board (other than the Audit Committee); (4) review","page_number":27,"box":{"x":70,"y":294,"width":809,"height":11}},{"id":"020def12-3649-46ab-b0f7-d7daf6575270","block_type":"box","text":"and make recommendations regarding Independent Trustee compensation; (5) monitor corporate governance matters","page_number":27,"box":{"x":69,"y":309,"width":838,"height":11}},{"id":"def8d997-5bd2-41c3-bd19-c3b62df72096","block_type":"box","text":"and develop appropriate recommendations to the Board; (6) act as the administrative committee with respect to","page_number":27,"box":{"x":69,"y":324,"width":800,"height":11}},{"id":"697df3cc-b6aa-40ab-b3bb-2b299f887ef2","block_type":"box","text":"Board policies and procedures, committee policies and procedures (other than the Audit Committee) and codes of","page_number":27,"box":{"x":70,"y":339,"width":813,"height":11}},{"id":"c15bfb8f-5251-4346-b016-017d14cae73d","block_type":"box","text":"ethics as they relate to Independent Trustees; and (7) under take such other duties and responsibilities as may from","page_number":27,"box":{"x":69,"y":355,"width":829,"height":11}},{"id":"01ac3fd3-45b6-4902-be66-7d0ad62686f2","block_type":"box","text":"time to time be delegated by the Board to the Governance Committee. The Governance Committee may consider","page_number":27,"box":{"x":68,"y":370,"width":804,"height":11}},{"id":"b69dfea7-cf53-43b9-9d8e-bff5f427b524","block_type":"box","text":"nominations for Trustees made by the Fund’s shareholders as it deems appropriate. Under the Trust’s Amended and","page_number":27,"box":{"x":69,"y":385,"width":832,"height":11}},{"id":"21d2b01c-1b27-4d87-a399-42619bdffa87","block_type":"box","text":"Restated Code of Regulations (“Bylaws”), shareholders must follow cer tain procedures to nominate a person for","page_number":27,"box":{"x":70,"y":400,"width":801,"height":11}},{"id":"95f7eb15-e579-42fb-af61-b214d42982f2","block_type":"box","text":"election as a Trustee at a shareholder meeting at which Trustees are to be elected. Under these advance notice","page_number":27,"box":{"x":69,"y":415,"width":799,"height":11}},{"id":"5ba46587-28fa-41c1-a5d5-dbf9a012824d","block_type":"box","text":"procedures, notice of the proposed nominee to the Secretary of the Trust must be delivered to or mailed and","page_number":27,"box":{"x":70,"y":430,"width":776,"height":11}},{"id":"486b785a-aedc-469f-a2f5-19f3219e30e8","block_type":"box","text":"received at the principal executive offices of the Trust not later than the close of business on the fifth day following","page_number":27,"box":{"x":69,"y":445,"width":821,"height":12}},{"id":"158a6f8f-1cfa-4cad-9eba-13e721f6d122","block_type":"box","text":"the day on which notice of the date of the meeting was mailed or public disclosure of the date of the meeting was","page_number":27,"box":{"x":68,"y":460,"width":812,"height":12}},{"id":"cd02d097-588c-4e9a-a161-d844d6e963f9","block_type":"box","text":"made, whichever first occurs. The Trust’s Bylaws provide that notice of a proposed nomination must include cer tain","page_number":27,"box":{"x":69,"y":475,"width":823,"height":12}},{"id":"83f61ba2-40b8-4c3d-9e7e-cc1fe82947e6","block_type":"box","text":"information about the shareholder and the nominee, as well as cer tain other information, including a written consent","page_number":27,"box":{"x":70,"y":491,"width":832,"height":11}},{"id":"f5481e9b-9b59-44a0-9efa-0047805cd48f","block_type":"box","text":"of the proposed nominee to serve if elected. Reference is made to the Trust’s Bylaws for more details. The Board","page_number":27,"box":{"x":69,"y":506,"width":811,"height":11}},{"id":"38395479-9e87-461a-b244-5e0b9c8dcf01","block_type":"box","text":"has adopted a written char ter for the Governance Committee. During the twelve months ended May 31, 2026, the","page_number":27,"box":{"x":69,"y":521,"width":813,"height":11}},{"id":"d8b6ed76-4d79-4b6f-a9dc-67a4e4181420","block_type":"box","text":"Governance Committee met ten times.","page_number":27,"box":{"x":69,"y":536,"width":274,"height":9}},{"id":"b79a4dbe-fc2e-444f-9b3d-b7abc1e8f0fd","block_type":"box","text":"Compliance Committee.","page_number":27,"box":{"x":102,"y":559,"width":168,"height":11}},{"id":"f6299dbd-79c3-4fdb-995c-277f4c930588","block_type":"box","text":"The members of the Compliance Committee (the “Compliance Committee”) are Claire A.","page_number":27,"box":{"x":276,"y":559,"width":629,"height":11}},{"id":"21866329-6452-4b0f-b447-aa1bf4638045","block_type":"box","text":"Walton (Chair), Jeffrey Jarczyk, Cynthia A. Montgomery, Donald C. Opatrny, Lori Richards and Kenneth L. Urish, all of","page_number":27,"box":{"x":68,"y":574,"width":828,"height":11}},{"id":"6e792bfe-80ec-444c-bea9-bcc131dc1720","block_type":"box","text":"whom are Independent Trustees. The Compliance Committee’s purpose is to assist the Board in fulfilling its","page_number":27,"box":{"x":68,"y":589,"width":771,"height":11}},{"id":"2937c9cf-3e50-4674-9345-c497faebba7f","block_type":"box","text":"responsibility to oversee regulatory and fiduciary compliance matters involving the Trust, the fund-related activities of","page_number":27,"box":{"x":69,"y":604,"width":835,"height":11}},{"id":"30d861e9-1c1f-46cd-8f82-3fa39a000962","block_type":"box","text":"BlackRock and any sub-adviser and the Trust’s third-par ty service providers. The Compliance Committee’s","page_number":27,"box":{"x":70,"y":619,"width":754,"height":11}},{"id":"b9c43cef-7119-4214-8f58-bb15c096011c","block_type":"box","text":"responsibilities include, without limitation, to (1) oversee the compliance policies and procedures of the Trust and its","page_number":27,"box":{"x":69,"y":634,"width":834,"height":11}},{"id":"6641e2c3-1be1-425f-b95e-ae2c88c58ba6","block_type":"box","text":"service providers and recommend changes or additions to such policies and procedures; (2) review information on","page_number":27,"box":{"x":69,"y":649,"width":815,"height":12}},{"id":"8813d977-4653-46f1-9ab1-6eca753aac92","block_type":"box","text":"and, where appropriate, recommend policies concerning the Trust’s compliance with applicable law; (3) review","page_number":27,"box":{"x":69,"y":665,"width":785,"height":11}},{"id":"909935a0-d8d1-4059-ac77-7e6d41078429","block_type":"box","text":"repor ts from, oversee the annual per formance review of, and make cer tain recommendations and determinations","page_number":27,"box":{"x":69,"y":680,"width":811,"height":11}},{"id":"8eab16b5-8145-47e7-b50d-99c23d71bc93","block_type":"box","text":"regarding the Trust’s Chief Compliance Officer (the “CCO”), including determining the amount and structure of the","page_number":27,"box":{"x":69,"y":695,"width":812,"height":11}},{"id":"4b7bdec1-d1ab-484c-8fdd-9315595787d3","block_type":"box","text":"CCO’s compensation and recommending such amount and structure to the full Board for approval and ratification;","page_number":27,"box":{"x":69,"y":710,"width":812,"height":11}},{"id":"4092abfb-2f46-4bf4-a22a-407f71b6b301","block_type":"box","text":"and (4) under take such other duties and responsibilities as may from time to time be delegated by the Board to the","page_number":27,"box":{"x":69,"y":725,"width":825,"height":11}},{"id":"390dca6f-b4c9-46cc-9246-5c4f45cd11a9","block_type":"box","text":"Compliance Committee. The Board has adopted a written char ter for the Compliance Committee. During the twelve","page_number":27,"box":{"x":69,"y":740,"width":818,"height":11}},{"id":"b5d2bd64-f37b-4315-a7d4-0313d2cfddac","block_type":"box","text":"months ended May 31, 2026, the Compliance Committee met four times.","page_number":27,"box":{"x":69,"y":755,"width":525,"height":11}},{"id":"37867dc7-0b17-41a1-ae6b-5e8f96415989","block_type":"box","text":"Per formance Oversight Committee.","page_number":27,"box":{"x":102,"y":778,"width":248,"height":11}},{"id":"9b4f7a61-0b1d-4ae8-b4cf-d49bdb71e1d1","block_type":"box","text":"The members of the Per formance Oversight Committee (the “Per formance","page_number":27,"box":{"x":356,"y":778,"width":531,"height":11}},{"id":"53cf5e7f-eaab-4bea-938b-8206869f6f6f","block_type":"box","text":"Oversight Committee”) are Donald C. Opatrny (Chair), Christopher J. Ailman, Susan J. Car ter, Collette Chilton, Neil A.","page_number":27,"box":{"x":69,"y":793,"width":829,"height":11}},{"id":"c396cd89-d648-4e2f-9930-9fe25a0cb7aa","block_type":"box","text":"Cotty and Marc D. Stern, all of whom are Independent Trustees. The Per formance Oversight Committee’s purpose is","page_number":27,"box":{"x":69,"y":808,"width":830,"height":11}},{"id":"fa6f078d-1e78-4a51-b67f-7efe872be4a1","block_type":"box","text":"to assist the Board in fulfilling its responsibility to oversee the Fund’s investment per formance relative to its agreed","page_number":27,"box":{"x":68,"y":823,"width":832,"height":12}},{"id":"10e41771-6bd7-42ba-af3c-46940bfea007","block_type":"box","text":"upon per formance objectives and to assist the Independent Trustees in their consideration of investment advisory","page_number":27,"box":{"x":69,"y":838,"width":816,"height":11}},{"id":"986203ed-b015-4790-b351-6b8c697da112","block_type":"box","text":"agreements. The Per formance Oversight Committee’s responsibilities include, without limitation, to (1) review","page_number":27,"box":{"x":69,"y":853,"width":782,"height":12}},{"id":"4402d23c-32e0-45b7-9b24-fe2f6462226a","block_type":"box","text":"information on, and make recommendations to the full Board in respect of, the Fund’s investment objective, policies","page_number":27,"box":{"x":70,"y":869,"width":829,"height":11}},{"id":"7274e9ff-01f6-4429-bbce-7c45b3fbeea0","block_type":"box","text":"and practices; (2) review information on the Fund’s investment per formance; (3) review information on appropriate","page_number":27,"box":{"x":69,"y":884,"width":816,"height":11}},{"id":"0b4ab3a7-2b47-4cbd-b171-d3520da6b82c","block_type":"box","text":"benchmarks and competitive universes and unusual or exceptional investment matters; (4) review personnel and","page_number":27,"box":{"x":69,"y":899,"width":803,"height":11}},{"id":"5b8fe034-88bf-4471-ab43-9145c74c2bb6","block_type":"box","text":"I-9","page_number":27,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"0f74b5c7-726b-4408-b029-7a49ff8e40ba","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":27,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4533a853-70a3-4590-9937-b100d8037094","block_type":"box","text":"other resources devoted to management of the Fund and evaluate the nature and quality of information furnished to","page_number":28,"box":{"x":69,"y":45,"width":827,"height":11}},{"id":"85b2130c-ecbb-4521-ab23-5b44239e3abd","block_type":"box","text":"the Per formance Oversight Committee; (5) recommend any required action regarding changes in fundamental and","page_number":28,"box":{"x":68,"y":60,"width":811,"height":11}},{"id":"02eeef51-246b-40c1-89fb-bb6ed6a5b6e3","block_type":"box","text":"non-fundamental investment policies and restrictions, fund mergers or liquidations; (6) request and review","page_number":28,"box":{"x":69,"y":75,"width":757,"height":11}},{"id":"f5dee6ef-c009-4aa7-aebd-8e86c31932f4","block_type":"box","text":"information on the nature, extent and quality of services provided to the shareholders; (7) make recommendations to","page_number":28,"box":{"x":70,"y":90,"width":835,"height":11}},{"id":"6ef401c9-fa86-4a2a-923d-516dc741274b","block_type":"box","text":"the Board concerning the approval or renewal of investment advisory agreements; and (8) under take such other","page_number":28,"box":{"x":68,"y":105,"width":800,"height":11}},{"id":"c0233349-2e9b-454c-9fb4-3f09881ef90c","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":28,"box":{"x":69,"y":120,"width":780,"height":12}},{"id":"b58e24c6-0c5a-46a7-8136-4bd39e56f787","block_type":"box","text":"Committee. The Board has adopted a written char ter for the Per formance Oversight Committee. During the twelve","page_number":28,"box":{"x":69,"y":135,"width":810,"height":12}},{"id":"509549c6-af04-459e-8200-7788ad7aefad","block_type":"box","text":"months ended May 31, 2026, the Per formance Oversight Committee met five times.","page_number":28,"box":{"x":69,"y":150,"width":602,"height":12}},{"id":"7de2f461-7be5-4e0f-993b-cea8d5ffa630","block_type":"box","text":"Ad Hoc Topics Committee.","page_number":28,"box":{"x":101,"y":173,"width":186,"height":11}},{"id":"45679f9e-3556-44ab-b0ef-9aa315fd3f2e","block_type":"box","text":"The members of the Ad Hoc Topics Committee (the “Ad Hoc Topics Committee”) are","page_number":28,"box":{"x":293,"y":173,"width":598,"height":11}},{"id":"d07e6b17-05f3-4342-af8b-0140e19133a7","block_type":"box","text":"Mark Stalnecker (Chair) and Claire A. Walton, both of whom are Independent Trustees, and John M. Perlowski, who","page_number":28,"box":{"x":70,"y":188,"width":817,"height":11}},{"id":"d7a57176-4b0c-48e9-9afd-9209c881d656","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":28,"box":{"x":69,"y":203,"width":795,"height":11}},{"id":"6bfca1eb-c01f-41ee-8399-a8c834e8b2d4","block_type":"box","text":"routine matters between meetings of the Board; (2) act on such matters as may require urgent action between","page_number":28,"box":{"x":69,"y":218,"width":788,"height":12}},{"id":"b223a790-b9c6-41b5-a624-b58edfa4ae64","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":28,"box":{"x":69,"y":234,"width":813,"height":11}},{"id":"3de4a621-a9e2-4d42-b2a1-40021bc809a1","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":28,"box":{"x":68,"y":249,"width":816,"height":11}},{"id":"12071857-69cd-47dc-8118-b2a2cc935bd4","block_type":"box","text":"the twelve months ended May 31, 2026, the Ad Hoc Topics Committee did not meet.","page_number":28,"box":{"x":68,"y":264,"width":606,"height":11}},{"id":"4deffd7b-24d7-4251-9cc4-73436a52005c","block_type":"box","text":"The Governance Committee has adopted a statement of policy that describes the experience, qualifications,","page_number":28,"box":{"x":101,"y":286,"width":771,"height":12}},{"id":"463884e0-857f-4cd5-85ce-e464e8728eb9","block_type":"box","text":"skills and attributes that are necessary and desirable for potential Independent Trustee candidates (the “Statement","page_number":28,"box":{"x":69,"y":302,"width":827,"height":11}},{"id":"aa2ef980-5124-47e4-8822-a0ddefd938f0","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":28,"box":{"x":69,"y":317,"width":830,"height":11}},{"id":"70ce7591-5e24-49c6-b8c4-2d91f553c8e1","block_type":"box","text":"appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. Fur thermore,","page_number":28,"box":{"x":69,"y":332,"width":825,"height":11}},{"id":"91914879-052f-4ecd-8d39-7b76c84b6421","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":28,"box":{"x":70,"y":347,"width":807,"height":11}},{"id":"54341a5c-0855-47a3-9e49-5cd0619dfda1","block_type":"box","text":"Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that,","page_number":28,"box":{"x":70,"y":362,"width":787,"height":11}},{"id":"ccb558df-e6bb-43b3-ad82-1ce2b8e903cb","block_type":"box","text":"collectively, the Independent Trustees have balanced and diverse experience, skills, attributes and qualifications,","page_number":28,"box":{"x":69,"y":377,"width":805,"height":11}},{"id":"e5ee15a5-fcf1-41a4-8d1e-401a5a89abed","block_type":"box","text":"which allow the Board to operate effectively in governing the Trust and protecting the interests of shareholders.","page_number":28,"box":{"x":68,"y":392,"width":794,"height":12}},{"id":"02c7b616-d200-4a8f-928a-00bc2ed1664c","block_type":"box","text":"Among the attributes common to all Independent Trustees are their ability to review critically, evaluate, question and","page_number":28,"box":{"x":68,"y":408,"width":829,"height":11}},{"id":"1e80e375-33d1-4fdd-84d5-0189381fee57","block_type":"box","text":"discuss information provided to them, to interact effectively with the Fund’s investment adviser, sub-advisers, other","page_number":28,"box":{"x":69,"y":423,"width":823,"height":11}},{"id":"4aa8b78a-6008-46ed-b519-fd8f4fbd4cd3","block_type":"box","text":"service providers, counsel and the Independent Registered Public Accounting Firm, and to exercise effective","page_number":28,"box":{"x":69,"y":438,"width":771,"height":11}},{"id":"501f7883-d7d6-4551-8f45-8114584bb3da","block_type":"box","text":"business judgment in the per formance of their duties as Trustees.","page_number":28,"box":{"x":69,"y":453,"width":473,"height":11}},{"id":"998891aa-8d68-4a53-99d9-abbefc00e96e","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":28,"box":{"x":102,"y":475,"width":792,"height":12}},{"id":"5d4647b0-5af6-496e-9068-4b64ce9ba5c3","block_type":"box","text":"or professional training; business, consulting, public service or academic positions; experience from service as a","page_number":28,"box":{"x":69,"y":491,"width":807,"height":11}},{"id":"89f3f437-9383-4e77-b6b1-badb6ef6aa2b","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":28,"box":{"x":69,"y":506,"width":837,"height":11}},{"id":"149e2f48-fb70-4bb4-a606-c955b46a3eb1","block_type":"box","text":"investment funds, public companies, non-profit entities or other organizations; ongoing commitment to and","page_number":28,"box":{"x":70,"y":521,"width":759,"height":11}},{"id":"135e5f2c-ce0e-4b8b-ad6b-0e24dbcf6f8f","block_type":"box","text":"par ticipation in Board and Committee meetings, as well as his or her leadership of standing and","page_number":28,"box":{"x":70,"y":536,"width":685,"height":11}},{"id":"5e29d167-29e9-47ae-81ee-e8ba896fcc29","block_type":"box","text":"ad hoc","page_number":28,"box":{"x":762,"y":536,"width":47,"height":9}},{"id":"9bae4a73-85fc-4812-818d-2cc266d413fa","block_type":"box","text":"committees","page_number":28,"box":{"x":814,"y":536,"width":82,"height":9}},{"id":"fe7c4382-1b08-44b0-9349-766e80bc3824","block_type":"box","text":"throughout the years; or other relevant life experiences.","page_number":28,"box":{"x":68,"y":551,"width":395,"height":11}},{"id":"86a76319-1455-4075-9261-3dbbd463dba5","block_type":"box","text":"The table below discusses some of the experiences, qualifications and skills of each of the Trustees that","page_number":28,"box":{"x":101,"y":574,"width":751,"height":11}},{"id":"b39161c8-787c-4b93-a18b-54dc9ac0c8ca","block_type":"box","text":"suppor t the conclusion that each Trustee should serve on the Board.","page_number":28,"box":{"x":69,"y":589,"width":492,"height":11}},{"id":"05b0aa67-ba15-40f6-99a8-2a6a4f529bc8","block_type":"box","text":"Trustees Experience, Qualifications and Skills","page_number":28,"box":{"x":68,"y":617,"width":409,"height":9}},{"id":"4bfe6036-9384-41e4-81e1-a5129321dbdb","block_type":"box","text":"Independent Trustees","page_number":28,"box":{"x":70,"y":634,"width":154,"height":11}},{"id":"3e1d57fc-9ab0-4014-a775-6f09deef9f70","block_type":"box","text":"Christopher J. Ailman Christopher Ailman has more than 30 years of experience in the financial services","page_number":28,"box":{"x":69,"y":649,"width":781,"height":11}},{"id":"762db110-851a-431f-8056-787e80cdb6de","block_type":"box","text":"industry, including most recently serving as Chief Investment Officer of the California","page_number":28,"box":{"x":265,"y":664,"width":604,"height":11}},{"id":"78bfcfdb-7b5e-4c37-9bde-0a85a9f020c4","block_type":"box","text":"State Teachers Retirement System (CalSTRS) from 2000 to June 2024 where he led its","page_number":28,"box":{"x":265,"y":679,"width":623,"height":11}},{"id":"7c7b0ee4-805c-4803-a97f-087c4c0ea5ff","block_type":"box","text":"investment program. Mr. Ailman currently is a principal at Ailman Advisers. In addition, he","page_number":28,"box":{"x":265,"y":694,"width":637,"height":11}},{"id":"5a223a4c-967d-4718-96fd-97ec81b5f16f","block_type":"box","text":"has held various roles in the industry, including as member and chair of the asset owner","page_number":28,"box":{"x":265,"y":709,"width":631,"height":11}},{"id":"6f43d8d8-af03-470b-a637-ae1aa020a7f2","block_type":"box","text":"committee of the Kroner Center for Financial Research, chairman of the Nor th American","page_number":28,"box":{"x":264,"y":724,"width":626,"height":11}},{"id":"2beb8c7a-45ad-4fb5-a1aa-4c8f6eaef94e","block_type":"box","text":"Chapter of the 300 Club of Global CIOs, and co-chair of the Milken Global Capital Markets","page_number":28,"box":{"x":265,"y":739,"width":639,"height":11}},{"id":"384dd155-4d8f-48f9-b101-91d3b0d98652","block_type":"box","text":"Advisory Council. These positions have provided Mr. Ailman with considerable investment","page_number":28,"box":{"x":264,"y":755,"width":637,"height":11}},{"id":"e23b796c-a4fd-4187-adaf-fae30b1ce6ba","block_type":"box","text":"exper tise across asset classes and strategies, and insight and perspective on the","page_number":28,"box":{"x":265,"y":770,"width":586,"height":11}},{"id":"e153f947-4d22-4b7e-8a78-410b02372104","block_type":"box","text":"markets and the economy. In addition, Mr. Ailman serves as a member of the Governance","page_number":28,"box":{"x":265,"y":785,"width":640,"height":11}},{"id":"5d469b25-13d7-4f1e-b247-ebdc6d1b1aa3","block_type":"box","text":"Committee and the Per formance Oversight Committee.","page_number":28,"box":{"x":265,"y":800,"width":389,"height":11}},{"id":"1b766552-9f3c-44b7-82ba-71813b4f24c1","block_type":"box","text":"I-10","page_number":28,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"968a5723-0fb0-401c-8441-845118f551e8","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":28,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b4e139d7-4052-4d28-8e6d-434bd5b28d7a","block_type":"box","text":"Trustees Experience, Qualifications and Skills","page_number":29,"box":{"x":68,"y":49,"width":409,"height":9}},{"id":"c6681996-abf3-4de3-91dc-af01662a7e4f","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":29,"box":{"x":69,"y":65,"width":806,"height":12}},{"id":"c55ba42e-5472-4484-886e-aa86f9b541c3","block_type":"box","text":"served as President & Chief Executive Officer of Commonfund Capital, Inc. (“CCI”), a","page_number":29,"box":{"x":265,"y":81,"width":604,"height":11}},{"id":"1f560ee1-cdce-4d18-bcce-697881b53102","block_type":"box","text":"registered investment adviser focused on non-profit investors, from 1997 to 2013, Chief","page_number":29,"box":{"x":265,"y":96,"width":632,"height":11}},{"id":"ed39a8b4-7056-4c8b-a254-14c2ea5698c7","block_type":"box","text":"Executive Officer of CCI from 2013 to 2014 and Senior Advisor to CCI in 2015.","page_number":29,"box":{"x":265,"y":111,"width":562,"height":9}},{"id":"64555f54-8bbd-4a23-82ea-1f3312bbc295","block_type":"box","text":"Ms. Car ter also served as director of the Pacific Pension Institute from 2014 to 2018,","page_number":29,"box":{"x":265,"y":126,"width":616,"height":10}},{"id":"05f70d50-c7dc-470d-8873-e972c97a908a","block_type":"box","text":"trustee to the Financial Accounting Foundation from 2017 to 2021, Advisory Board","page_number":29,"box":{"x":264,"y":141,"width":591,"height":11}},{"id":"8278e75b-132c-4082-ae57-79e1c0a2bbb0","block_type":"box","text":"Member for the Center for Private Equity and Entrepreneurship at Tuck School of Business","page_number":29,"box":{"x":265,"y":156,"width":641,"height":11}},{"id":"376cfebe-2cc1-4293-8ee1-9900e900c1e0","block_type":"box","text":"from 1997 to 2021, Advisory Board Member for Bridges Fund Management from 2016 to","page_number":29,"box":{"x":264,"y":171,"width":638,"height":12}},{"id":"45ef5ab3-e371-4f07-9829-486549b1e23b","block_type":"box","text":"2018, Advisory Board Member for Girls Who Invest from 2015 to 2018 and Board","page_number":29,"box":{"x":265,"y":186,"width":584,"height":12}},{"id":"258e7e76-c34c-4f52-8ae3-9923f6a607d5","block_type":"box","text":"Member thereof from 2018 to 2022, and Practitioner Advisory Board Member for Private","page_number":29,"box":{"x":265,"y":201,"width":630,"height":12}},{"id":"04adfa7d-3152-4b03-a4b4-d8788ed5350e","block_type":"box","text":"Capital Research Institute (“PCRI”) from 2017 to 2024. She currently serves as Member","page_number":29,"box":{"x":265,"y":217,"width":634,"height":11}},{"id":"b6827727-6840-4d76-9084-fd0f3bb18868","block_type":"box","text":"of the President’s Counsel for Commonfund. These positions have provided her with","page_number":29,"box":{"x":265,"y":232,"width":599,"height":11}},{"id":"d27842f9-5c28-41f0-9432-9d1c81d6e6d2","block_type":"box","text":"insight and perspective on the markets and the economy.","page_number":29,"box":{"x":265,"y":247,"width":407,"height":11}},{"id":"701ed864-5611-49a2-9484-1379771d8890","block_type":"box","text":"Collette Chilton Collette Chilton has over 20 years of experience in investment management. She held the","page_number":29,"box":{"x":69,"y":269,"width":837,"height":12}},{"id":"027069a7-9ac0-4c69-a46c-4f05d8b49a29","block_type":"box","text":"position of Chief Investment Officer of Williams College from October 2006 to June 2023.","page_number":29,"box":{"x":265,"y":285,"width":638,"height":11}},{"id":"ebcadf67-f6a6-4438-b98e-365a14803a19","block_type":"box","text":"Prior to that she was President and Chief Investment Officer of Lucent Asset Management","page_number":29,"box":{"x":265,"y":300,"width":642,"height":11}},{"id":"af13d818-26f7-41eb-a139-85d048bc5658","block_type":"box","text":"Corporation, where she oversaw approximately $40 billion in pension and retirement","page_number":29,"box":{"x":265,"y":314,"width":601,"height":12}},{"id":"d9e9e3ad-2821-4cd3-92c0-0c6eae97cb7a","block_type":"box","text":"savings assets for the company. These positions have provided her with insight and","page_number":29,"box":{"x":265,"y":330,"width":595,"height":11}},{"id":"389d5f90-18f4-414c-9bd0-3f98128b9aa5","block_type":"box","text":"perspective on the markets and the economy.","page_number":29,"box":{"x":265,"y":345,"width":323,"height":11}},{"id":"c893878b-1ba7-4ddd-bac8-bfadb34c0811","block_type":"box","text":"Neil A. Cotty Neil A. Cotty has more than 30 years of experience in the financial services industry,","page_number":29,"box":{"x":70,"y":368,"width":798,"height":11}},{"id":"230f5c42-b43f-4788-8eb0-d6d52128b909","block_type":"box","text":"including 19 years at Bank of America Corporation and its affiliates, where he served, at","page_number":29,"box":{"x":265,"y":383,"width":631,"height":11}},{"id":"f93b9d17-b950-4502-a478-d9aba70582e9","block_type":"box","text":"different times, as the Chief Financial Officer of various businesses including Investment","page_number":29,"box":{"x":265,"y":398,"width":633,"height":11}},{"id":"140edd5e-46d2-477f-b32d-e8548344b660","block_type":"box","text":"Banking, Global Markets, Wealth Management and Consumer and also served ten years","page_number":29,"box":{"x":265,"y":413,"width":628,"height":11}},{"id":"9991d16f-b600-448c-9230-9c1b98dabde9","block_type":"box","text":"as the Chief Accounting Officer for Bank of America Corporation. Mr. Cotty has been","page_number":29,"box":{"x":265,"y":428,"width":596,"height":12}},{"id":"1352a921-ef63-4875-b529-5ea627c22141","block_type":"box","text":"determined by the Audit Committee to be an audit committee financial exper t, as such","page_number":29,"box":{"x":265,"y":443,"width":616,"height":12}},{"id":"5c5ab6fd-1f2b-4a80-934d-e705abd31785","block_type":"box","text":"term is defined in the applicable Commission rules.","page_number":29,"box":{"x":264,"y":458,"width":368,"height":11}},{"id":"5e27553c-8352-4488-a957-1f0dc9028599","block_type":"box","text":"Jeffrey Jarczyk Jeffrey Jarczyk is a CPA and has more than 30 years of experience in the financial","page_number":29,"box":{"x":69,"y":481,"width":777,"height":11}},{"id":"28be6763-f4da-4a2d-a04b-2cc30f672851","block_type":"box","text":"services industry, including over 19 years at Fidelity Investments, where he served, at","page_number":29,"box":{"x":265,"y":496,"width":613,"height":12}},{"id":"29d1f060-2cfd-4564-81fa-2001b5ca1eb4","block_type":"box","text":"different times, as the Chief Auditor and the Chief Accounting Officer of Fidelity","page_number":29,"box":{"x":265,"y":511,"width":563,"height":12}},{"id":"0f5027b6-66a3-494d-99d7-0dc4a0d7458b","block_type":"box","text":"Investments’ parent company, FMR LLC. Prior to working at Fidelity, Mr. Jarczyk was a","page_number":29,"box":{"x":265,"y":527,"width":607,"height":11}},{"id":"d52397e6-1c23-473f-a051-f52a197764ed","block_type":"box","text":"par tner at Deloitte and Ar thur Andersen for approximately 17 years. These positions have","page_number":29,"box":{"x":265,"y":542,"width":638,"height":11}},{"id":"ddcdd677-824b-44bf-a6d5-e96ac4f19c2f","block_type":"box","text":"allowed him to work extensively with audit and risk committees and company executives","page_number":29,"box":{"x":265,"y":557,"width":626,"height":11}},{"id":"90b48c04-469e-4c4a-9188-3f1b740d8a6c","block_type":"box","text":"helping to identify, manage and mitigate risks for financial services companies.","page_number":29,"box":{"x":265,"y":572,"width":563,"height":11}},{"id":"8321473f-a8b0-430e-a623-a5bdc9bcf729","block_type":"box","text":"Mr. Jarczyk also served as a consultant to the Independent Trustees prior to becoming an","page_number":29,"box":{"x":265,"y":587,"width":639,"height":11}},{"id":"398cc11f-7ce0-4ce8-89e2-ebc1a75c1d54","block_type":"box","text":"Independent Trustee. Mr. Jarczyk has been determined by the Audit Committee to be an","page_number":29,"box":{"x":265,"y":602,"width":625,"height":11}},{"id":"0ce72d48-ff41-4342-91ee-6faa680cf742","block_type":"box","text":"audit committee financial exper t, as such term is defined in the applicable Commission","page_number":29,"box":{"x":265,"y":617,"width":623,"height":11}},{"id":"d8e6f0d2-fef5-42a2-b2dd-c6d54e286f32","block_type":"box","text":"rules.","page_number":29,"box":{"x":265,"y":633,"width":38,"height":8}},{"id":"5d0afedb-6242-4366-b58b-c75c36828f55","block_type":"box","text":"Henry R. Keizer Henry R. Keizer brings over 40 years of executive, financial, operational, strategic and","page_number":29,"box":{"x":70,"y":655,"width":806,"height":11}},{"id":"7639da77-d9b8-49a6-bac9-991d0df59f51","block_type":"box","text":"global exper tise gained through his 35 year career at KPMG, a global professional","page_number":29,"box":{"x":264,"y":670,"width":584,"height":11}},{"id":"e864d16a-894e-4db4-a09a-ad4d547d13f7","block_type":"box","text":"services organization and by his service as a director to both publicly and privately held","page_number":29,"box":{"x":265,"y":686,"width":622,"height":11}},{"id":"f5c1ddb1-6154-402a-a40b-75397eec70c5","block_type":"box","text":"organizations. He has extensive experience with issues facing complex, global companies","page_number":29,"box":{"x":265,"y":700,"width":638,"height":12}},{"id":"92337ee4-8117-4069-bf82-3923f8b7c5d1","block_type":"box","text":"and exper tise in financial repor ting, accounting, auditing, risk management, and","page_number":29,"box":{"x":265,"y":715,"width":570,"height":12}},{"id":"3eab8093-0aa7-4883-8b70-a89f12215698","block_type":"box","text":"regulatory affairs for such companies. Mr. Keizer’s experience also includes service as an","page_number":29,"box":{"x":265,"y":731,"width":642,"height":11}},{"id":"5c4cee5c-5c33-49d5-843d-29bb186bcc7a","block_type":"box","text":"audit committee chair to both publicly and privately held organizations across numerous","page_number":29,"box":{"x":265,"y":746,"width":626,"height":11}},{"id":"1d66a0af-0cf9-480f-96cd-c54c9c411fcf","block_type":"box","text":"industries including professional services, proper ty and casualty reinsurance, insurance,","page_number":29,"box":{"x":265,"y":761,"width":630,"height":11}},{"id":"407614b8-6e4b-4e5a-8272-860a3b778ef9","block_type":"box","text":"diversified financial services, banking, direct to consumer, business to business and","page_number":29,"box":{"x":265,"y":776,"width":602,"height":11}},{"id":"24bd213b-266b-4869-99ce-acdaea16f921","block_type":"box","text":"technology. Mr. Keizer is a cer tified public accountant and also served on the board of the","page_number":29,"box":{"x":264,"y":791,"width":643,"height":11}},{"id":"e77a3e71-d088-4d15-bd57-5299ee8576b4","block_type":"box","text":"American Institute of Cer tified Public Accountants. Mr. Keizer has been determined by the","page_number":29,"box":{"x":264,"y":806,"width":639,"height":11}},{"id":"f66a3650-7f5c-4e10-a3b6-ba5b3f426b59","block_type":"box","text":"Audit Committee to be an audit committee financial exper t, as such term is defined in the","page_number":29,"box":{"x":264,"y":821,"width":641,"height":11}},{"id":"94d83eb3-8471-4081-a27b-67dfa0ba5b72","block_type":"box","text":"applicable Commission rules.","page_number":29,"box":{"x":265,"y":837,"width":208,"height":10}},{"id":"cf002655-34c9-4920-8728-13c6b8df24c5","block_type":"box","text":"I-11","page_number":29,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"b3cee31a-fefd-45ab-82ed-9eafe26fc5cb","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":29,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1e60bd30-2fe8-4668-b812-fe53832b62c5","block_type":"box","text":"Trustees Experience, Qualifications and Skills","page_number":30,"box":{"x":68,"y":49,"width":409,"height":9}},{"id":"36fdb03c-4776-4d6c-a351-7e9f63e59b57","block_type":"box","text":"Cynthia A. Montgomery Cynthia A. Montgomery has served for over 20 years on the boards of registered","page_number":30,"box":{"x":69,"y":65,"width":769,"height":12}},{"id":"de8b5d3d-7619-41c2-a1c0-73ae1f02aac7","block_type":"box","text":"investment companies, most recently as a member of the boards of cer tain BlackRock","page_number":30,"box":{"x":265,"y":81,"width":621,"height":11}},{"id":"e1f0d473-5082-4f27-ae13-ccede162519c","block_type":"box","text":"advised Funds and predecessor funds, including the legacy Merrill Lynch Investment","page_number":30,"box":{"x":265,"y":96,"width":599,"height":11}},{"id":"efafc010-0a05-4f1d-8f45-916362cf73aa","block_type":"box","text":"Managers, L.P. (“MLIM”) funds. The Board benefits from Ms. Montgomery’s more than 20","page_number":30,"box":{"x":265,"y":111,"width":641,"height":11}},{"id":"003fdb0d-4c72-496d-8cae-473ac0f1b4f0","block_type":"box","text":"years of academic experience as a professor at Harvard Business School where she","page_number":30,"box":{"x":264,"y":126,"width":602,"height":11}},{"id":"d9afdc84-cab1-4e9d-930b-8d9ec6dda12c","block_type":"box","text":"taught courses on corporate strategy and corporate governance. Ms. Montgomery also","page_number":30,"box":{"x":264,"y":141,"width":617,"height":11}},{"id":"71d35aff-d8a8-46a8-b5e7-59c9b2009194","block_type":"box","text":"has business management and corporate governance experience through her service on","page_number":30,"box":{"x":265,"y":156,"width":629,"height":11}},{"id":"8983067c-71d1-4c9f-8263-01d961607f02","block_type":"box","text":"the corporate boards of a variety of public companies. She has also authored numerous","page_number":30,"box":{"x":264,"y":171,"width":628,"height":11}},{"id":"74dd16eb-fe35-4875-8f1b-d2358ae36a8a","block_type":"box","text":"ar ticles and books on these topics.","page_number":30,"box":{"x":265,"y":187,"width":251,"height":10}},{"id":"613538dc-6531-412a-b7ef-1f54df82a872","block_type":"box","text":"Donald C. Opatrny Donald C. Opatrny has more than 40 years of business, oversight and executive","page_number":30,"box":{"x":70,"y":209,"width":764,"height":11}},{"id":"0975a74b-5e15-4934-ab1c-fee6da00d8bd","block_type":"box","text":"experience, including through his service as president, director and investment committee","page_number":30,"box":{"x":265,"y":224,"width":642,"height":11}},{"id":"60c4edeb-50c7-46c1-9c1e-6d4f28fb4fe3","block_type":"box","text":"chair for academic and not-for-profit organizations, and his experience as a par tner,","page_number":30,"box":{"x":264,"y":239,"width":593,"height":12}},{"id":"2c69a525-40bb-43ae-aeea-4aa959315bd9","block_type":"box","text":"managing director and advisory director at Goldman Sachs for 32 years. He also has","page_number":30,"box":{"x":265,"y":254,"width":603,"height":12}},{"id":"f0ae58bd-6139-4829-854a-c54e069c7deb","block_type":"box","text":"investment management experience as a board member of Athena Capital Advisors LLC.","page_number":30,"box":{"x":265,"y":269,"width":629,"height":12}},{"id":"3ff39a31-f9f1-4507-b048-9da553d5efba","block_type":"box","text":"Lori Richards Lori Richards has more than 30 years of experience in the financial services industry,","page_number":30,"box":{"x":70,"y":292,"width":804,"height":11}},{"id":"153eb085-1a64-4d46-b765-ed4381faa42a","block_type":"box","text":"most notably as the first Director of the Office of Compliance Inspections and","page_number":30,"box":{"x":265,"y":307,"width":552,"height":11}},{"id":"f95eea33-7847-4525-9652-293e3027cf6b","block_type":"box","text":"Examinations (“OCIE”) of the Securities and Exchange Commission (“SEC”) from 1995 to","page_number":30,"box":{"x":265,"y":322,"width":636,"height":12}},{"id":"5ee9d8e1-941f-43a0-b58b-84c6ffe09a10","block_type":"box","text":"2009. During 14 years as the Director of OCIE, she led the SEC’s nationwide examination","page_number":30,"box":{"x":265,"y":338,"width":639,"height":11}},{"id":"33f6877e-3555-43b2-a1f5-90da0b2d5c7f","block_type":"box","text":"oversight program for advisers, mutual funds, hedge funds, broker-dealers, stock","page_number":30,"box":{"x":265,"y":353,"width":576,"height":11}},{"id":"6ff16bab-8993-47a5-967a-27139a892d43","block_type":"box","text":"exchanges, and other industry firms. Prior to that, from 1985 to 1995, she held various","page_number":30,"box":{"x":265,"y":368,"width":626,"height":11}},{"id":"45d18f8e-fee9-4244-878c-c49d9a343dcc","block_type":"box","text":"roles at the SEC, including Associate Director for Enforcement for the SEC’s Pacific","page_number":30,"box":{"x":265,"y":383,"width":592,"height":11}},{"id":"a2402fc0-d4c3-420d-b767-765434d61276","block_type":"box","text":"Regional Office and executive assistant and senior advisor to then SEC Chairman Ar thur","page_number":30,"box":{"x":265,"y":398,"width":629,"height":11}},{"id":"de80c4d3-cf0c-4063-92f4-c03704c6eff2","block_type":"box","text":"Levitt. More recently, Ms. Richards served as Chief Compliance Officer of the Asset and","page_number":30,"box":{"x":265,"y":413,"width":626,"height":11}},{"id":"71756f28-74f4-46aa-b2c6-c047229e51d5","block_type":"box","text":"Wealth Management global lines of business at JPMorgan Chase & Co. from 2013 to","page_number":30,"box":{"x":264,"y":428,"width":608,"height":12}},{"id":"770733ff-7ce6-4e22-8f6d-bbc842ff4aa4","block_type":"box","text":"2018 where she led its global compliance program, advised business leaders on","page_number":30,"box":{"x":265,"y":443,"width":575,"height":12}},{"id":"052a5a29-f500-4972-af8b-4024153ce7ee","block_type":"box","text":"compliance issues, oversaw risk assessment, monitoring, testing and training, and","page_number":30,"box":{"x":264,"y":459,"width":591,"height":11}},{"id":"080cf06a-8dc8-403e-be04-1eaf123ac581","block_type":"box","text":"maintained relationships with regulators. In addition, Ms. Richards served as a member","page_number":30,"box":{"x":265,"y":474,"width":627,"height":11}},{"id":"30757e33-123c-47c6-954a-4cd07a5697c7","block_type":"box","text":"of the National Adjudicatory Council of the Financial Industry Regulatory Authority","page_number":30,"box":{"x":265,"y":489,"width":578,"height":11}},{"id":"f46a93b7-0944-42c0-9f05-65bcbea27589","block_type":"box","text":"(FINRA) from 2019 to 2022 and held the chair and vice chair posts during her tenure.","page_number":30,"box":{"x":265,"y":504,"width":607,"height":11}},{"id":"abefee89-2321-42c3-a302-0147a0642c7c","block_type":"box","text":"Prior thereto, from 2010 to 2013, she was a Principal at PricewaterhouseCoopers LLP","page_number":30,"box":{"x":265,"y":519,"width":615,"height":11}},{"id":"df9113fb-9e4c-44a6-89b4-8d6896ff0c97","block_type":"box","text":"(“PwC”) and co-leader of its Asset Management Regulatory group. At PwC, she assisted a","page_number":30,"box":{"x":265,"y":534,"width":638,"height":11}},{"id":"6c475b5a-940c-46ff-b81c-92e733086182","block_type":"box","text":"broad range of financial services clients in designing and implementing risk management","page_number":30,"box":{"x":265,"y":549,"width":635,"height":11}},{"id":"1f0c2f9d-310c-47ac-b474-de4bdc3024f9","block_type":"box","text":"and compliance programs, and preparing for new regulatory expectations. These positions","page_number":30,"box":{"x":265,"y":564,"width":642,"height":12}},{"id":"37a2fe43-02ec-4779-9749-afe299e0da80","block_type":"box","text":"have provided her with insight and perspective on the markets and the economy, as well","page_number":30,"box":{"x":265,"y":580,"width":627,"height":11}},{"id":"e71d2229-f3b7-47ba-8719-6788bb54f384","block_type":"box","text":"as asset management regulation and compliance. In addition, Ms. Richards serves as a","page_number":30,"box":{"x":265,"y":595,"width":628,"height":11}},{"id":"a167d06d-29d6-4b9c-841f-c4b7d2b123c0","block_type":"box","text":"member of the Audit Committee and the Compliance Committee.","page_number":30,"box":{"x":265,"y":610,"width":460,"height":11}},{"id":"514a1426-d095-410e-a35b-b421ca4d0de8","block_type":"box","text":"Mark Stalnecker Mark Stalnecker has gained a wealth of experience in investing and asset management","page_number":30,"box":{"x":70,"y":632,"width":818,"height":12}},{"id":"195f77b6-c955-4bc1-ad9c-cb3cde8077f5","block_type":"box","text":"from his over 13 years of service as the Chief Investment Officer of the University of","page_number":30,"box":{"x":264,"y":647,"width":603,"height":12}},{"id":"bbcc3c07-a02c-4ebc-b06c-cbe349b6660b","block_type":"box","text":"Delaware as well as from his various positions with First Union Corporation, including","page_number":30,"box":{"x":265,"y":663,"width":606,"height":11}},{"id":"0e0331a3-c119-4c98-808d-78b892880c77","block_type":"box","text":"Senior Vice President and State Investment Director of First Investment Advisors. The","page_number":30,"box":{"x":265,"y":678,"width":608,"height":9}},{"id":"88edc9bd-4ab4-4858-8074-2f6a2ce4c0cd","block_type":"box","text":"Board benefits from his experience and perspective as the Chief Investment Officer of a","page_number":30,"box":{"x":265,"y":693,"width":626,"height":11}},{"id":"c5f8b73c-0075-4b75-8a10-aa4fba4f57b3","block_type":"box","text":"university endowment and from the oversight experience he gained from service on","page_number":30,"box":{"x":265,"y":708,"width":591,"height":11}},{"id":"e6b90b1e-0392-4a3b-ad06-010c89467ec7","block_type":"box","text":"various private and non-profit boards.","page_number":30,"box":{"x":264,"y":723,"width":265,"height":11}},{"id":"393be7a7-0be0-4b57-9682-c3d81b62b20b","block_type":"box","text":"Marc D. Stern Marc D. Stern has more than 30 years of experience in investing and asset management.","page_number":30,"box":{"x":70,"y":746,"width":833,"height":11}},{"id":"5350c78f-23fc-4be0-9715-dfd523baeea4","block_type":"box","text":"Mr. Stern served as the Chief Executive Officer at Bessemer Trust, a wealth management","page_number":30,"box":{"x":265,"y":761,"width":638,"height":11}},{"id":"09ca3fb7-0076-4f62-abc4-dc609fa0923f","block_type":"box","text":"business, for 13 years. During his tenure at Bessemer Trust, Mr. Stern served on the","page_number":30,"box":{"x":265,"y":776,"width":608,"height":11}},{"id":"4c9e5681-bff5-44d5-97b0-bbb689cff789","block_type":"box","text":"firm’s board of directors, chaired the board’s trust and investment committee, and led the","page_number":30,"box":{"x":264,"y":791,"width":645,"height":11}},{"id":"30bcfc68-4bda-4c06-bf0b-14b63d5cf99b","block_type":"box","text":"firm’s executive committee. He also served as Bessemer’s Chief Investment Officer for 8","page_number":30,"box":{"x":264,"y":806,"width":639,"height":9}},{"id":"0fa6f219-3d75-4f27-9447-343c6418f7e5","block_type":"box","text":"years, where he was Chair of the Investment Policy and Strategy Committee with","page_number":30,"box":{"x":264,"y":821,"width":573,"height":12}},{"id":"236e6f68-2cc4-47f7-ad39-c6d2b7b11ff8","block_type":"box","text":"responsibility for overall asset allocation and investment strategy. Mr. Stern also served","page_number":30,"box":{"x":265,"y":836,"width":625,"height":12}},{"id":"7f096fa1-89b7-416f-9a69-ff151f7f57d8","block_type":"box","text":"as Chair of the Private Clients Investment group at AllianceBernstein. These positions","page_number":30,"box":{"x":265,"y":852,"width":610,"height":11}},{"id":"6f9185d7-e70d-446b-956e-54e9c9f1cd02","block_type":"box","text":"provide Mr. Stern with insight and perspective into investment management, the economy,","page_number":30,"box":{"x":265,"y":867,"width":642,"height":11}},{"id":"ed88fd41-6d60-4170-a2d4-e6feb7574452","block_type":"box","text":"and fiduciary governance. Mr. Stern also served as a consultant to the Independent","page_number":30,"box":{"x":265,"y":882,"width":597,"height":11}},{"id":"90b335e4-2ca5-40e5-b1ea-7d27d1064946","block_type":"box","text":"Trustees prior to becoming an Independent Trustee.","page_number":30,"box":{"x":264,"y":897,"width":369,"height":11}},{"id":"73129635-4c48-4203-acbf-ef6158d09a98","block_type":"box","text":"I-12","page_number":30,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"cd0da577-65f1-46d0-8def-0652bac9f518","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":30,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4725039d-8bb7-4193-87e0-d6e1c0ed2ca2","block_type":"box","text":"Trustees Experience, Qualifications and Skills","page_number":31,"box":{"x":68,"y":49,"width":409,"height":9}},{"id":"d3017a14-4e59-4b94-a61e-4b1c224fef6f","block_type":"box","text":"Kenneth L. Urish Kenneth L. Urish has served for over 15 years on the boards of registered investment","page_number":31,"box":{"x":70,"y":65,"width":807,"height":12}},{"id":"2c5072d5-c6cb-4af8-a669-65fc8e7c582c","block_type":"box","text":"companies, most recently as a member of the boards of cer tain BlackRock-advised Funds","page_number":31,"box":{"x":264,"y":81,"width":641,"height":11}},{"id":"454ecd0d-d6bd-46b8-9807-69485d09947f","block_type":"box","text":"and predecessor funds, including the legacy BlackRock funds. He has over 30 years of","page_number":31,"box":{"x":265,"y":96,"width":618,"height":11}},{"id":"3f60156d-b798-4434-b876-e4170a2115ae","block_type":"box","text":"experience in public accounting. Mr. Urish has served as a managing member of an","page_number":31,"box":{"x":265,"y":111,"width":594,"height":11}},{"id":"3dfd32bf-b25a-4bd5-90c9-d152fb4c03ac","block_type":"box","text":"accounting and consulting firm. Mr. Urish has been determined by the Audit Committee to","page_number":31,"box":{"x":265,"y":126,"width":639,"height":11}},{"id":"c1973428-cf51-40c7-94d3-d797e7784283","block_type":"box","text":"be an audit committee financial exper t, as such term is defined in the applicable","page_number":31,"box":{"x":265,"y":141,"width":575,"height":11}},{"id":"1588f089-d96f-4b83-a4ee-3feb7e3d78ec","block_type":"box","text":"Commission rules.","page_number":31,"box":{"x":265,"y":156,"width":131,"height":9}},{"id":"aec9d196-6228-495c-855e-5e5fbf5c179f","block_type":"box","text":"Claire A. Walton Claire A. Walton has over 25 years of experience in investment management. She has","page_number":31,"box":{"x":69,"y":179,"width":808,"height":11}},{"id":"112203e4-d9e5-4182-91c1-d9eaa961aea9","block_type":"box","text":"served as the Chief Operating Officer and Chief Financial Officer of Liber ty Square Asset","page_number":31,"box":{"x":265,"y":194,"width":630,"height":11}},{"id":"cb455506-496a-4147-8147-566d51b3828c","block_type":"box","text":"Management, LP / Steel Par tners Japan Asset Management, LP from 1998 to 2015, an","page_number":31,"box":{"x":265,"y":209,"width":627,"height":11}},{"id":"13f84a3e-2bbe-4d16-92e0-5527e08ac044","block_type":"box","text":"investment manager that specialized in long/shor t non-U.S. equity investments, and was","page_number":31,"box":{"x":265,"y":224,"width":632,"height":11}},{"id":"301c4c83-6464-4951-a392-75cd5f4f7558","block_type":"box","text":"an owner and General Par tner of Neon Liber ty Capital Management, LLC from 2003 to","page_number":31,"box":{"x":265,"y":239,"width":615,"height":12}},{"id":"6fc65c6e-7b62-477a-926e-b961d9ab5e37","block_type":"box","text":"2023, a firm focusing on long/shor t equities in global emerging and frontier markets.","page_number":31,"box":{"x":265,"y":254,"width":608,"height":12}},{"id":"0c622814-85e4-420f-b35d-d56c835d7823","block_type":"box","text":"These positions have provided her with insight and perspective on the markets and the","page_number":31,"box":{"x":264,"y":270,"width":620,"height":11}},{"id":"55fac161-d327-41a7-84ef-98a68d159d0e","block_type":"box","text":"economy. Ms. Walton has been determined by the Audit Committee to be an audit","page_number":31,"box":{"x":265,"y":285,"width":584,"height":11}},{"id":"c2ceac8b-57ca-4d78-b898-6cb8c1ace8b6","block_type":"box","text":"committee financial exper t, as such term is defined in the applicable Commission rules.","page_number":31,"box":{"x":264,"y":300,"width":629,"height":11}},{"id":"b170e41b-35a8-47fb-aaf5-63aaed83d428","block_type":"box","text":"Interested Trustees","page_number":31,"box":{"x":70,"y":323,"width":138,"height":8}},{"id":"8a5b0aff-e11b-4986-84d3-fa6aa30939ce","block_type":"box","text":"Rober t Fairbairn Rober t Fairbairn has more than 25 years of experience with BlackRock, Inc. and over 30","page_number":31,"box":{"x":70,"y":338,"width":823,"height":11}},{"id":"b442fdd9-2a68-44df-8f61-48e57b7b310e","block_type":"box","text":"years of experience in finance and asset management. In par ticular, Mr. Fairbairn’s","page_number":31,"box":{"x":264,"y":353,"width":593,"height":11}},{"id":"5f68e713-5001-4dd3-9e0d-9e3f87b5cecc","block_type":"box","text":"positions as Vice Chairman of BlackRock, Inc., Member of BlackRock’s Global Operating","page_number":31,"box":{"x":265,"y":368,"width":629,"height":11}},{"id":"eecda672-32bb-4628-9a02-1ea45140e149","block_type":"box","text":"Committee and Co-Chair of BlackRock’s Human Capital Committee provide the Board with","page_number":31,"box":{"x":265,"y":383,"width":639,"height":11}},{"id":"a160a39f-f860-4ac5-aab0-6396178389d2","block_type":"box","text":"a wealth of practical business knowledge and leadership. In addition, Mr. Fairbairn has","page_number":31,"box":{"x":265,"y":398,"width":617,"height":11}},{"id":"f02ebac4-09f2-414a-ab05-57ca8007d502","block_type":"box","text":"global investment management and oversight experience through his former positions as","page_number":31,"box":{"x":264,"y":413,"width":634,"height":11}},{"id":"916bc274-5adf-42e5-8823-40947ddb2a79","block_type":"box","text":"Member of BlackRock’s Global Executive Committee, Global Head of BlackRock’s Retail","page_number":31,"box":{"x":265,"y":428,"width":624,"height":11}},{"id":"10e44dbb-59ee-483a-ab2e-157301f5d790","block_type":"box","text":"and iShares","page_number":31,"box":{"x":265,"y":443,"width":84,"height":9}},{"id":"f2481667-ed1b-4117-8330-36e72b50159c","block_type":"box","text":"®","page_number":31,"box":{"x":350,"y":444,"width":6,"height":4}},{"id":"75a71f01-f0f9-47b9-a21f-d59a75f8d2e9","block_type":"box","text":"businesses, Head of BlackRock’s Global Client Group, Chairman of","page_number":31,"box":{"x":362,"y":443,"width":478,"height":11}},{"id":"a4975e2f-225e-4f6a-9e29-bc9951a67e39","block_type":"box","text":"BlackRock’s international businesses and his previous oversight over BlackRock’s","page_number":31,"box":{"x":265,"y":459,"width":585,"height":11}},{"id":"ff54fa07-a4ba-411a-9290-ce154c0ae30a","block_type":"box","text":"Strategic Par tner Program and Strategic Product Management Group. Mr. Fairbairn also","page_number":31,"box":{"x":265,"y":474,"width":620,"height":11}},{"id":"32d21330-dd8a-4b74-9c47-69e01cc79a43","block_type":"box","text":"serves as a board member for the funds in the BlackRock Fixed-Income Complex.","page_number":31,"box":{"x":265,"y":489,"width":578,"height":11}},{"id":"47e4f440-8f71-439e-9134-f5c99d15bd24","block_type":"box","text":"John M. Perlowski John M. Perlowski’s experience as Senior Managing Director of BlackRock, Inc. since","page_number":31,"box":{"x":69,"y":511,"width":800,"height":12}},{"id":"9e8f98d5-4916-484c-a5e4-c2361df2f502","block_type":"box","text":"2026, as Managing Director of BlackRock, Inc. from 2009 to 2025, as the Head of","page_number":31,"box":{"x":265,"y":526,"width":593,"height":12}},{"id":"576a6964-2bf1-4ca4-911b-9c280b7d0dd5","block_type":"box","text":"BlackRock Global Business Operations Services since 2009, and as President and Chief","page_number":31,"box":{"x":265,"y":542,"width":633,"height":11}},{"id":"22a36ae6-b815-40e8-9ecd-a3579e13da9b","block_type":"box","text":"Executive Officer of the BlackRock-advised Funds provides him with a strong","page_number":31,"box":{"x":265,"y":557,"width":542,"height":11}},{"id":"a22429bc-bc7b-454c-8fea-0a3b416eb89e","block_type":"box","text":"understanding of the BlackRock-advised Funds, their operations, and the business and","page_number":31,"box":{"x":265,"y":572,"width":617,"height":11}},{"id":"39b47181-cc6d-4c13-a307-d61797c0c95b","block_type":"box","text":"regulatory issues facing the BlackRock-advised Funds. Mr. Perlowski’s prior position as","page_number":31,"box":{"x":265,"y":587,"width":620,"height":11}},{"id":"ce817318-308c-469e-945e-01090f6b596d","block_type":"box","text":"Managing Director and Chief Operating Officer of the Global Product Group at Goldman","page_number":31,"box":{"x":265,"y":602,"width":616,"height":11}},{"id":"a3e7ef5a-2413-4a61-a903-6c2ccaf5a3e4","block_type":"box","text":"Sachs Asset Management, and his former service as Treasurer and Senior Vice President","page_number":31,"box":{"x":265,"y":617,"width":639,"height":12}},{"id":"69fc401c-a7a5-4bcd-97b5-0212a95efe12","block_type":"box","text":"of the Goldman Sachs Mutual Funds and as Director of the Goldman Sachs Offshore","page_number":31,"box":{"x":265,"y":632,"width":603,"height":9}},{"id":"9e0cc82a-6b19-4763-a9f4-6868a2e94765","block_type":"box","text":"Funds provides the Board with the benefit of his experience with the management","page_number":31,"box":{"x":265,"y":647,"width":582,"height":12}},{"id":"dd82cd39-d9e1-44c4-a434-68c6841950a3","block_type":"box","text":"practices of other financial companies. Mr. Perlowski also serves as a board member for","page_number":31,"box":{"x":265,"y":663,"width":632,"height":11}},{"id":"76eb1421-e784-4d1e-90b5-b7f015ff05c9","block_type":"box","text":"the funds in the BlackRock Fixed-Income Complex. 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None None","page_number":36,"box":{"x":190,"y":102,"width":660,"height":9}},{"id":"a5535fda-df82-45db-826a-bcc59d7516e1","block_type":"box","text":"Mark Stalnecker","page_number":36,"box":{"x":79,"y":117,"width":115,"height":9}},{"id":"8693ec5e-0431-4a1b-a992-21cedcf1135f","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . None Over","page_number":36,"box":{"x":198,"y":117,"width":611,"height":9}},{"id":"e16ec7d9-e59c-46d2-8226-0a0afd0cf84d","block_type":"box","text":"$100,000","page_number":36,"box":{"x":815,"y":116,"width":72,"height":12}},{"id":"f3414f4e-fe28-460b-9740-31b94202a70a","block_type":"box","text":"Marc D. Stern*. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . None None","page_number":36,"box":{"x":79,"y":132,"width":771,"height":9}},{"id":"b835a542-8897-4ce4-96d9-2b0b1c1fc983","block_type":"box","text":"Kenneth L. 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None Over","page_number":36,"box":{"x":79,"y":163,"width":730,"height":8}},{"id":"4aed768e-cb82-4a05-b938-5f0115ac2bf9","block_type":"box","text":"$100,000","page_number":36,"box":{"x":815,"y":162,"width":72,"height":11}},{"id":"6e93076c-eac0-458d-8436-292dc042c4d8","block_type":"box","text":"Interested Trustees","page_number":36,"box":{"x":70,"y":178,"width":138,"height":9}},{"id":"f339dd17-4514-4fc8-8269-c5e74721004d","block_type":"box","text":"Rober t Fairbairn","page_number":36,"box":{"x":79,"y":193,"width":113,"height":9}},{"id":"81e56ad7-a4c4-4e27-a8cb-4769aa983b21","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . None Over","page_number":36,"box":{"x":198,"y":193,"width":611,"height":9}},{"id":"8ff3a55f-6816-43b8-befb-e5b1c93fcbff","block_type":"box","text":"$100,000","page_number":36,"box":{"x":815,"y":192,"width":72,"height":11}},{"id":"34647603-d301-44e2-8bcd-3dfe6873904d","block_type":"box","text":"John M. Perlowski","page_number":36,"box":{"x":78,"y":208,"width":127,"height":9}},{"id":"f05c260d-a0c8-4980-8f19-013ad25cdd72","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . None Over","page_number":36,"box":{"x":214,"y":208,"width":595,"height":9}},{"id":"3c6d7b86-1b83-49ad-8fe0-d2997ecf95fd","block_type":"box","text":"$100,000","page_number":36,"box":{"x":815,"y":207,"width":72,"height":11}},{"id":"d3823144-2089-4ed6-b684-0b4dc70bd4fe","block_type":"box","text":"* Information is provided as of April 1, 2026, the date Mr. Jarczyk and Mr. Stern first served as consultants to the Independent Trustees.","page_number":36,"box":{"x":70,"y":232,"width":782,"height":9}},{"id":"79d0c6eb-4745-46b0-ba61-2437cd2560a5","block_type":"box","text":"As of September 3, 2026, the Trustees and officers of the Trust as a group directly or indirectly beneficially","page_number":36,"box":{"x":101,"y":253,"width":767,"height":11}},{"id":"47f97f75-6653-4bc3-9373-cc22eb27b1ae","block_type":"box","text":"owned an aggregate of less than 1% of any class of the outstanding shares of the Fund. As of December 31, 2025","page_number":36,"box":{"x":69,"y":268,"width":819,"height":12}},{"id":"d905d414-9920-4317-8f32-f566b7ae566c","block_type":"box","text":"(and, with respect to Mr. Jarczyk and Mr. Stern, as of April 1, 2026), none of the Independent Trustees of the Trust or","page_number":36,"box":{"x":69,"y":283,"width":839,"height":12}},{"id":"2a9b683d-2e59-4bb2-9ce1-280806b82a99","block_type":"box","text":"their immediate family members owned beneficially or of record any securities of the Fund’s investment adviser,","page_number":36,"box":{"x":68,"y":298,"width":798,"height":12}},{"id":"eff7977e-2bf2-4439-bdf1-75e097c330ae","block_type":"box","text":"principal underwriter, or any person directly or indirectly controlling, controlled by, or under common control with such","page_number":36,"box":{"x":70,"y":314,"width":831,"height":11}},{"id":"aa9f41e1-d32f-4db0-80dc-56d03b8b9ec8","block_type":"box","text":"entities.","page_number":36,"box":{"x":69,"y":329,"width":56,"height":9}},{"id":"998a279e-f490-4bca-bc79-87e49c72464d","block_type":"box","text":"Compensation of Trustees","page_number":36,"box":{"x":69,"y":359,"width":190,"height":11}},{"id":"5cfedb03-0673-48be-bfc6-c8f99ddc9edc","block_type":"box","text":"Each Trustee who is an Independent Trustee is paid as compensation an annual retainer of $375,000 per year","page_number":36,"box":{"x":102,"y":381,"width":791,"height":12}},{"id":"37ba0899-1849-42fc-af06-9b78f0b237b4","block_type":"box","text":"for his or her services as a board member of the BlackRock-advised Funds in the BlackRock Multi-Asset Complex,","page_number":36,"box":{"x":68,"y":397,"width":810,"height":11}},{"id":"6db0d474-32d5-40e9-b0e9-c2c33fc0cede","block_type":"box","text":"including the Trust, and a $20,000 board meeting fee to be paid for each in-person board meeting attended (and may","page_number":36,"box":{"x":70,"y":411,"width":838,"height":12}},{"id":"db45e88f-870f-4194-8d9e-efd4c92fd9b1","block_type":"box","text":"receive a board meeting fee for telephonic attendance at board meetings), for up to five board meetings held in a","page_number":36,"box":{"x":69,"y":427,"width":807,"height":11}},{"id":"80286710-942e-4316-bd36-a6b04ec1f9fe","block_type":"box","text":"calendar year (compensation for meetings in excess of this number to be determined on a case-by-case basis),","page_number":36,"box":{"x":69,"y":442,"width":791,"height":11}},{"id":"d9ab94f6-e801-45a3-83e8-30f26f15092d","block_type":"box","text":"together with out-of-pocket expenses in accordance with a board policy on travel and other business expenses","page_number":36,"box":{"x":68,"y":457,"width":786,"height":12}},{"id":"c77a3357-a873-44b8-b343-4742972eb46d","block_type":"box","text":"relating to attendance at meetings. The Chairs of the Audit Committee, Compliance Committee, Governance","page_number":36,"box":{"x":69,"y":472,"width":769,"height":12}},{"id":"fd4bb322-2116-4bc8-a19b-14376bc80382","block_type":"box","text":"Committee and Per formance Oversight Committee are paid as compensation an additional annual retainer of","page_number":36,"box":{"x":69,"y":487,"width":778,"height":12}},{"id":"c384b767-10d8-4343-8c1c-ab1a4f855ed4","block_type":"box","text":"$45,000, respectively. The Chair of the Board is paid an additional annual retainer of $150,000.","page_number":36,"box":{"x":69,"y":502,"width":689,"height":12}},{"id":"92ea9bd4-035e-43ff-85ca-2a5d148309ba","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":36,"box":{"x":101,"y":525,"width":776,"height":12}},{"id":"14d6c03c-0314-412f-a583-7b13ac66ccc7","block_type":"box","text":"fiscal year ended May 31, 2026 and the aggregate compensation paid to them by all BlackRock-advised Funds for the","page_number":36,"box":{"x":68,"y":540,"width":841,"height":12}},{"id":"ca7b4564-4544-4b1f-a4fa-5027727b6901","block_type":"box","text":"calendar year ended December 31, 2025.","page_number":36,"box":{"x":69,"y":556,"width":298,"height":11}},{"id":"111a5672-bd22-4784-a4a9-c00a055caf6e","block_type":"box","text":"Name","page_number":36,"box":{"x":69,"y":614,"width":32,"height":7}},{"id":"0cf3043b-4c2e-4b25-a352-8c572c00ad7d","block_type":"box","text":"Compensation","page_number":36,"box":{"x":486,"y":594,"width":83,"height":9}},{"id":"55b70bae-ff3b-465f-9537-9865e70c0ece","block_type":"box","text":"from","page_number":36,"box":{"x":515,"y":604,"width":25,"height":7}},{"id":"4983fe50-e211-4352-bc83-d3fa607276e2","block_type":"box","text":"the Fund","page_number":36,"box":{"x":502,"y":614,"width":51,"height":7}},{"id":"4b34ce2c-dc7e-49d4-9495-c512f174fbe3","block_type":"box","text":"Estimated Annual","page_number":36,"box":{"x":599,"y":594,"width":102,"height":7}},{"id":"b2d8360f-f06f-4296-9d50-becb3e6c977e","block_type":"box","text":"Benefits upon","page_number":36,"box":{"x":611,"y":604,"width":79,"height":9}},{"id":"4dc67a61-0695-4723-996a-2cb4b00a8832","block_type":"box","text":"Retirement","page_number":36,"box":{"x":618,"y":614,"width":65,"height":7}},{"id":"d7a36944-f8f5-484a-95bf-31e66a68eb2e","block_type":"box","text":"Aggregate Compensation from","page_number":36,"box":{"x":731,"y":584,"width":178,"height":9}},{"id":"d0d285e3-0b67-4f98-a285-2c39ffc33587","block_type":"box","text":"the Fund and","page_number":36,"box":{"x":782,"y":594,"width":76,"height":7}},{"id":"01b72f87-1d80-4f63-b24e-3a236acfb514","block_type":"box","text":"Other BlackRock","page_number":36,"box":{"x":769,"y":604,"width":102,"height":7}},{"id":"3efdd536-6afb-4bcc-bb89-56c13f34cdeb","block_type":"box","text":"Advised Funds","page_number":36,"box":{"x":776,"y":614,"width":84,"height":7}},{"id":"6a139813-2c0f-445f-a0ce-b323cb46e8e1","block_type":"box","text":"1","page_number":36,"box":{"x":861,"y":614,"width":3,"height":4}},{"id":"a1a893cc-39cd-4dc1-aec9-703157f523dc","block_type":"box","text":"Independent Trustees","page_number":36,"box":{"x":70,"y":632,"width":154,"height":11}},{"id":"2d1ba7e2-34cd-4ee7-b7a3-1d38ab1252ff","block_type":"box","text":"Christopher J. Ailman","page_number":36,"box":{"x":79,"y":647,"width":149,"height":11}},{"id":"6e68c728-98b2-44f3-8304-d2e052a62c15","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,475","page_number":36,"box":{"x":233,"y":646,"width":321,"height":11}},{"id":"923b02bf-5b97-459c-a643-495afa9851c2","block_type":"box","text":"None $445,000","page_number":36,"box":{"x":633,"y":646,"width":223,"height":11}},{"id":"79f9dd11-5ff9-4cd5-8aff-e95e97d22bc5","block_type":"box","text":"Susan J. Car ter","page_number":36,"box":{"x":79,"y":662,"width":110,"height":9}},{"id":"c054f205-0fdf-4562-a943-0f44db741d10","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,475","page_number":36,"box":{"x":192,"y":661,"width":362,"height":11}},{"id":"7bb5abec-fdaa-4c52-8fb4-ed9b748d6e86","block_type":"box","text":"None $445,000","page_number":36,"box":{"x":633,"y":661,"width":223,"height":11}},{"id":"c692f97d-7b53-4c5d-a35a-61f771ccdbfd","block_type":"box","text":"Collette Chilton . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,475","page_number":36,"box":{"x":79,"y":676,"width":475,"height":12}},{"id":"98f7ec47-d174-4b2c-8e0f-e2e96df80218","block_type":"box","text":"None $445,000","page_number":36,"box":{"x":633,"y":676,"width":223,"height":12}},{"id":"b7841909-679d-4a32-a9fc-fe9822e53dca","block_type":"box","text":"Neil A. Cotty. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,531","page_number":36,"box":{"x":79,"y":692,"width":475,"height":11}},{"id":"14e24662-56f1-4f22-a4ec-3afd7ab355e0","block_type":"box","text":"None $467,500","page_number":36,"box":{"x":633,"y":692,"width":223,"height":11}},{"id":"563a861f-e3b5-40ea-aa1f-ebbe2c2c13fb","block_type":"box","text":"Jeffrey Jarczyk","page_number":36,"box":{"x":78,"y":707,"width":103,"height":11}},{"id":"1bd1c5fd-b6fb-46cc-9f19-4a993e2d947c","block_type":"box","text":"2","page_number":36,"box":{"x":181,"y":708,"width":4,"height":4}},{"id":"142a0725-03d6-4f34-933e-722bca9fb2bb","block_type":"box","text":".................................","page_number":36,"box":{"x":192,"y":715,"width":263,"height":1}},{"id":"8f75aa60-3500-4c36-85f1-baba806e86f7","block_type":"box","text":"$365 None None","page_number":36,"box":{"x":509,"y":707,"width":329,"height":10}},{"id":"95179e4f-1391-4cf3-8af1-6cea387708b9","block_type":"box","text":"Henry R. Keizer","page_number":36,"box":{"x":79,"y":723,"width":109,"height":11}},{"id":"7a21479d-3550-405c-aefb-535d4ed58b16","block_type":"box","text":"3","page_number":36,"box":{"x":189,"y":723,"width":4,"height":4}},{"id":"eaaa9c3c-f765-41ca-9e9b-38fe614a893e","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,627","page_number":36,"box":{"x":201,"y":722,"width":352,"height":11}},{"id":"cc40dcbd-7bd5-49c2-a7c5-d2c9b1f6f270","block_type":"box","text":"None $490,000","page_number":36,"box":{"x":633,"y":722,"width":223,"height":11}},{"id":"c5d417bf-163e-41af-ab94-ea87e21e7728","block_type":"box","text":"Cynthia A. Montgomery","page_number":36,"box":{"x":79,"y":738,"width":164,"height":11}},{"id":"03750602-8919-4996-80c6-00815e7623dd","block_type":"box","text":"4","page_number":36,"box":{"x":244,"y":738,"width":4,"height":4}},{"id":"1ecf90d6-e13b-4f7e-bc52-c4effe39e830","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . $1,582 None $490,000","page_number":36,"box":{"x":258,"y":737,"width":598,"height":11}},{"id":"846f59e8-7b78-40ad-91e3-1c76f4f9a62e","block_type":"box","text":"Donald C. Opatrny","page_number":36,"box":{"x":79,"y":753,"width":129,"height":11}},{"id":"5deee84d-e4c7-4184-9d9a-624abaa67be3","block_type":"box","text":"5","page_number":36,"box":{"x":208,"y":753,"width":4,"height":5}},{"id":"3ac53e3a-1afe-4f5a-9d4e-de9ae03b7afa","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,582","page_number":36,"box":{"x":217,"y":752,"width":337,"height":11}},{"id":"e01b86c0-a015-4f3c-b98f-0421a933fac8","block_type":"box","text":"None $490,000","page_number":36,"box":{"x":633,"y":752,"width":223,"height":11}},{"id":"66eb56de-daff-4164-a704-66547cfa5223","block_type":"box","text":"Lori Richards . .","page_number":36,"box":{"x":79,"y":768,"width":107,"height":9}},{"id":"5ec937c6-c98d-442d-8915-d4ceca0b8493","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,475","page_number":36,"box":{"x":192,"y":767,"width":362,"height":11}},{"id":"36a1803a-7603-4f86-bbe4-b35577652c23","block_type":"box","text":"None $445,000","page_number":36,"box":{"x":633,"y":767,"width":223,"height":11}},{"id":"d9a26a9b-8424-4a5c-8999-121aa782d789","block_type":"box","text":"Mark Stalnecker","page_number":36,"box":{"x":79,"y":783,"width":115,"height":9}},{"id":"58c29d13-45bf-437e-a4e9-4610957ce91a","block_type":"box","text":"6","page_number":36,"box":{"x":194,"y":783,"width":5,"height":5}},{"id":"c8d103bc-896a-4509-9e4e-82437eab8059","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,830","page_number":36,"box":{"x":209,"y":782,"width":345,"height":11}},{"id":"ffc05a00-4656-46ce-9554-635320d7c1e8","block_type":"box","text":"None $595,000","page_number":36,"box":{"x":633,"y":782,"width":223,"height":11}},{"id":"df100bd2-e5c1-4fe5-98cc-883210c90571","block_type":"box","text":"Marc D. 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Urish","page_number":36,"box":{"x":79,"y":813,"width":117,"height":9}},{"id":"860c2baa-b8f2-4674-a6b6-1b55fa1b7f8e","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,475","page_number":36,"box":{"x":201,"y":812,"width":353,"height":12}},{"id":"926223f6-1c92-446e-a4ff-5e6dd33713d0","block_type":"box","text":"None $445,000","page_number":36,"box":{"x":633,"y":812,"width":223,"height":12}},{"id":"5132a967-8030-4910-844c-ebf2552ee3dd","block_type":"box","text":"Claire A. 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Perlowski","page_number":36,"box":{"x":78,"y":874,"width":127,"height":9}},{"id":"9b1fc5ea-d93d-4344-9a96-0fd67c899bc4","block_type":"box","text":"...............................","page_number":36,"box":{"x":209,"y":881,"width":246,"height":1}},{"id":"d51f7f53-d500-4259-bad6-34f36b1cba03","block_type":"box","text":"None None None","page_number":36,"box":{"x":510,"y":874,"width":328,"height":9}},{"id":"cd2edd03-8fa4-4a92-8332-1f7a64c0688e","block_type":"box","text":"1","page_number":36,"box":{"x":69,"y":898,"width":3,"height":4}},{"id":"0ee659ec-8c03-4ed6-a532-730b4848aa63","block_type":"box","text":"For the number of BlackRock-advised Funds from which each Trustee receives compensation, see “Biographical Information” beginning on","page_number":36,"box":{"x":94,"y":898,"width":786,"height":9}},{"id":"31b94c6e-6bc1-4bb3-b3bf-89c3b9e89c4f","block_type":"box","text":"page I-13.","page_number":36,"box":{"x":94,"y":908,"width":55,"height":9}},{"id":"93f30e04-4784-430b-b7e5-44308ae172b8","block_type":"box","text":"I-18","page_number":36,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"a2ee4b9c-d5a7-4bdd-b61a-f62ea0b4461e","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":36,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5ae09b6c-a0fb-4161-8584-f25cd7fa73eb","block_type":"box","text":"2","page_number":37,"box":{"x":69,"y":45,"width":3,"height":4}},{"id":"b5bef0e2-d453-483c-b170-d0f671cc4af5","block_type":"box","text":"Compensation includes $365 earned as a consultant to the Independent Trustees for the period April 1, 2026 to July 1, 2026.","page_number":37,"box":{"x":93,"y":46,"width":724,"height":9}},{"id":"58891cda-c47f-47d2-bf4b-a9ca4afd5424","block_type":"box","text":"3","page_number":37,"box":{"x":69,"y":58,"width":3,"height":3}},{"id":"ced8f38d-def4-4f26-83b1-ed971c8c76bd","block_type":"box","text":"Chair of the Audit Committee.","page_number":37,"box":{"x":93,"y":58,"width":168,"height":7}},{"id":"1bdb45bb-355d-4dab-830f-15b6f022fc4c","block_type":"box","text":"4","page_number":37,"box":{"x":68,"y":71,"width":4,"height":3}},{"id":"e3d40ceb-c36a-464d-ac05-fa4ff6271a5b","block_type":"box","text":"Chair of the Governance Committee.","page_number":37,"box":{"x":93,"y":70,"width":206,"height":8}},{"id":"3c184c9f-1930-4d95-b9b3-094a7d0885ab","block_type":"box","text":"5","page_number":37,"box":{"x":69,"y":83,"width":3,"height":4}},{"id":"ffa8b72a-68c0-40f2-817a-050a193606be","block_type":"box","text":"Chair of the Per formance Oversight Committee.","page_number":37,"box":{"x":93,"y":83,"width":269,"height":9}},{"id":"06addcc8-9725-4c41-8362-fb7ee63d1cf1","block_type":"box","text":"6","page_number":37,"box":{"x":69,"y":96,"width":3,"height":3}},{"id":"1bbdf97b-5ad0-4d1b-8354-5308018ca18d","block_type":"box","text":"Chair of the Board and Chair of the Ad Hoc Topics Committee.","page_number":37,"box":{"x":93,"y":96,"width":352,"height":8}},{"id":"71569acf-afb7-4336-a128-0bce4d5b7987","block_type":"box","text":"7","page_number":37,"box":{"x":69,"y":108,"width":3,"height":4}},{"id":"5377b8f0-769e-4baa-a1e0-b6ba0e7cf729","block_type":"box","text":"Chair of the Compliance Committee.","page_number":37,"box":{"x":93,"y":108,"width":205,"height":9}},{"id":"8d0549df-a697-4ff9-81b6-df92da5af712","block_type":"box","text":"IV. Management, Advisory and Other Service Arrangements","page_number":37,"box":{"x":69,"y":137,"width":432,"height":11}},{"id":"f8597b51-1725-4ced-8535-f716c35bdac5","block_type":"box","text":"Management Agreement","page_number":37,"box":{"x":69,"y":167,"width":180,"height":11}},{"id":"59168cf7-8fed-4622-a4be-ab4229eb0913","block_type":"box","text":"The Trust, on behalf of the Fund, has entered into an investment advisory agreement with BlackRock (the","page_number":37,"box":{"x":101,"y":189,"width":751,"height":12}},{"id":"190e6b54-0a88-4d2a-800b-f78d2ca0be07","block_type":"box","text":"“Management Agreement”) pursuant to which BlackRock is entitled to receive fees for the services it provides.","page_number":37,"box":{"x":70,"y":205,"width":788,"height":11}},{"id":"d314b0eb-8fd7-4190-bd17-ded284c7bb3f","block_type":"box","text":"BlackRock has contractually agreed to waive the management fee with respect to any por tion of the Fund’s","page_number":37,"box":{"x":102,"y":227,"width":762,"height":12}},{"id":"7c5c78d5-05b4-4452-8fe4-68edf6e05b51","block_type":"box","text":"assets estimated to be attributable to investments in other equity and fixed-income mutual funds and exchange","page_number":37,"box":{"x":69,"y":242,"width":799,"height":12}},{"id":"72051d85-0f59-4cb4-83d2-a5904a311114","block_type":"box","text":"traded funds managed by BlackRock or its affiliates that have a contractual management fee, through","page_number":37,"box":{"x":68,"y":258,"width":726,"height":11}},{"id":"5df5516e-ee5d-4c3c-9b03-0bc200005efc","block_type":"box","text":"June 30, 2028. BlackRock has contractually agreed to waive its management fees by the amount of investment","page_number":37,"box":{"x":69,"y":273,"width":797,"height":11}},{"id":"83a50103-ecdc-449e-b413-d4a811435c4d","block_type":"box","text":"advisory fees the Fund pays to BlackRock indirectly through its investment in money market funds managed by","page_number":37,"box":{"x":69,"y":288,"width":789,"height":11}},{"id":"3a5d3927-7472-46bc-856e-d637aa84ef7d","block_type":"box","text":"BlackRock or its affiliates, through June 30, 2028. The contractual agreements may be terminated upon 90 days’","page_number":37,"box":{"x":70,"y":303,"width":810,"height":11}},{"id":"7e8e0445-099d-4f45-a89e-054a0fdb83f1","block_type":"box","text":"notice by a majority of the Independent Trustees or by a vote of a majority of the outstanding voting securities of the","page_number":37,"box":{"x":69,"y":318,"width":827,"height":11}},{"id":"9e616ada-aad7-4c39-9c8c-a0e1714604e4","block_type":"box","text":"Fund.","page_number":37,"box":{"x":70,"y":333,"width":36,"height":9}},{"id":"d7b22ece-e86d-4436-8fa7-3c80b558cd5e","block_type":"box","text":"BlackRock has contractually agreed to waive and/or reimburse fees or expenses of the Fund in order to limit","page_number":37,"box":{"x":102,"y":356,"width":773,"height":11}},{"id":"c6e757e9-f943-440c-9217-51b807192d4e","block_type":"box","text":"Total Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements (excluding Dividend","page_number":37,"box":{"x":68,"y":371,"width":787,"height":11}},{"id":"2fe068c9-156f-47ee-9977-ea8598144269","block_type":"box","text":"Expense, Interest Expense, Acquired Fund Fees and expenses and cer tain other Fund expenses (as defined in the","page_number":37,"box":{"x":70,"y":386,"width":811,"height":11}},{"id":"707f8fed-ad4d-458b-abc9-12d914d1a6a4","block_type":"box","text":"Fund’s Prospectuses)) to 0.87% for Investor A Shares, 1.62% for Investor C Shares, 0.62% for Institutional Shares,","page_number":37,"box":{"x":70,"y":401,"width":820,"height":11}},{"id":"cd0b9b77-a663-43dc-a492-72acaf9e94bc","block_type":"box","text":"0.57% for Class K Shares, and 1.12% for Class R Shares of average daily assets through June 30, 2028. The","page_number":37,"box":{"x":69,"y":416,"width":784,"height":12}},{"id":"2bfc9f33-9f5c-401a-9830-be37bc63b77e","block_type":"box","text":"contractual agreement may be terminated upon 90 days’ notice by a majority of the Independent Trustees or by a","page_number":37,"box":{"x":69,"y":431,"width":808,"height":12}},{"id":"d869c41d-d1a1-49ab-8685-2d6ae2163954","block_type":"box","text":"vote of a majority of the outstanding voting securities of the Fund.","page_number":37,"box":{"x":68,"y":446,"width":468,"height":12}},{"id":"52cb860f-096f-4ea9-b25d-f254ddbda9e0","block_type":"box","text":"Pursuant to the Management Agreement, BlackRock may from time to time, in its sole discretion to the extent","page_number":37,"box":{"x":102,"y":469,"width":784,"height":11}},{"id":"d88c5c5b-10a0-4f24-960b-5f1083d82ef4","block_type":"box","text":"permitted by applicable law, appoint one or more sub-advisors, including, without limitation, affiliates of BlackRock, to","page_number":37,"box":{"x":70,"y":484,"width":838,"height":12}},{"id":"56256d04-8bf7-4548-b2f1-d0d03ad04718","block_type":"box","text":"per form investment advisory services with respect to the Fund. In addition, BlackRock may delegate cer tain of its","page_number":37,"box":{"x":70,"y":499,"width":810,"height":12}},{"id":"d893b37b-d639-452f-8ddb-24b880d0d49c","block_type":"box","text":"investment advisory functions under the Management Agreement to one or more of its affiliates to the extent","page_number":37,"box":{"x":70,"y":515,"width":779,"height":11}},{"id":"d897796d-203b-4f98-8018-a60a204010c8","block_type":"box","text":"permitted by applicable law. BlackRock may terminate any or all sub-advisors or such delegation arrangements in its","page_number":37,"box":{"x":70,"y":530,"width":827,"height":11}},{"id":"b5b885c7-6a7b-42ff-845c-b71855522842","block_type":"box","text":"sole discretion at any time to the extent permitted by applicable law.","page_number":37,"box":{"x":69,"y":545,"width":486,"height":11}},{"id":"730b7cc7-efc7-4bed-a729-7ee6a170900b","block_type":"box","text":"The table below sets for th information about the total management fees paid by the Trust to BlackRock, on","page_number":37,"box":{"x":101,"y":567,"width":765,"height":12}},{"id":"327606a6-f885-4019-95c4-317556fa558d","block_type":"box","text":"behalf of the Fund, and the amounts waived and reimbursed by BlackRock for the periods shown.","page_number":37,"box":{"x":69,"y":583,"width":692,"height":11}},{"id":"d06bafda-919a-4110-9051-5b4a4474c873","block_type":"box","text":"Fees Paid","page_number":37,"box":{"x":591,"y":611,"width":55,"height":7}},{"id":"c62869b6-c7c8-46ac-835c-e32bb432b927","block_type":"box","text":"to BlackRock","page_number":37,"box":{"x":579,"y":621,"width":79,"height":7}},{"id":"1edac173-0d19-4962-9e7a-1e7bdfd74a58","block_type":"box","text":"Fees Waived","page_number":37,"box":{"x":700,"y":611,"width":72,"height":7}},{"id":"37b24a53-80c8-4c57-a86d-9c26a938587e","block_type":"box","text":"by BlackRock","page_number":37,"box":{"x":696,"y":621,"width":80,"height":9}},{"id":"569a251b-3b17-4eb1-9942-6b746a776213","block_type":"box","text":"Fees Reimbursed","page_number":37,"box":{"x":810,"y":611,"width":99,"height":7}},{"id":"54d9559c-a527-46a6-ae7c-3712b8476e56","block_type":"box","text":"by BlackRock","page_number":37,"box":{"x":820,"y":621,"width":80,"height":9}},{"id":"97eabe85-2587-4142-9316-bc3a37ce8d6f","block_type":"box","text":"Fiscal Year Ended May 31, 2026 . .","page_number":37,"box":{"x":70,"y":639,"width":245,"height":11}},{"id":"901467aa-962c-419a-a1f1-c62a2b722937","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . $8,","page_number":37,"box":{"x":322,"y":638,"width":275,"height":11}},{"id":"c8210501-5981-434a-8961-ff7b01d16e6e","block_type":"box","text":"979,349 $1,000,396 $758,396","page_number":37,"box":{"x":600,"y":638,"width":295,"height":11}},{"id":"9c145570-d625-4fb1-984c-a3cd06071c77","block_type":"box","text":"Fiscal Year Ended May 31, 2025 . .","page_number":37,"box":{"x":70,"y":654,"width":245,"height":11}},{"id":"adfda613-0495-47ea-b1d1-101466524e01","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . $7,","page_number":37,"box":{"x":322,"y":653,"width":275,"height":11}},{"id":"83cc6dff-9dce-48ec-8b79-47dbf7c7bf5d","block_type":"box","text":"456,125 $ 814,156 $661,177","page_number":37,"box":{"x":599,"y":653,"width":296,"height":11}},{"id":"07c87fed-4ece-44f2-a928-731e8ac28dce","block_type":"box","text":"Fiscal Year Ended May 31, 2024 . .","page_number":37,"box":{"x":70,"y":669,"width":245,"height":11}},{"id":"2e004a1e-de33-4ed0-a6f8-36742cd9b9c5","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . $6,","page_number":37,"box":{"x":322,"y":668,"width":275,"height":11}},{"id":"f36857a0-69bb-4dab-bcfe-8188a7415e11","block_type":"box","text":"126,806 $ 803,171 $644,310","page_number":37,"box":{"x":600,"y":668,"width":295,"height":11}},{"id":"5f938b38-a704-4dbe-b858-3ff4fb99e191","block_type":"box","text":"Administration Agreement","page_number":37,"box":{"x":68,"y":700,"width":191,"height":12}},{"id":"36d0064f-3427-42f1-9def-eb21438f1236","block_type":"box","text":"BlackRock serves as the Fund’s administrator (in such capacity, the “Administrator”) pursuant to an","page_number":37,"box":{"x":102,"y":723,"width":711,"height":11}},{"id":"c48bb12c-a2fe-4140-bda7-c25af769c8e3","block_type":"box","text":"administration agreement (the “Administration Agreement”). The Administrator has agreed to maintain office facilities","page_number":37,"box":{"x":69,"y":738,"width":838,"height":11}},{"id":"5f365f38-e480-4aa6-a288-caecdc42b4ab","block_type":"box","text":"for the Fund; furnish the Fund with clerical, bookkeeping and administrative services; oversee the determination and","page_number":37,"box":{"x":68,"y":753,"width":830,"height":12}},{"id":"9b4c293c-bd24-426c-af96-d5f7a00ad2a5","block_type":"box","text":"publication of the Fund’s net asset value; oversee the preparation and filing of Federal, state and local income tax","page_number":37,"box":{"x":70,"y":768,"width":813,"height":12}},{"id":"7af44e46-1544-458a-908e-c15ee64c8658","block_type":"box","text":"returns; prepare cer tain repor ts required by regulatory authorities; calculate various contractual expenses; determine","page_number":37,"box":{"x":69,"y":784,"width":837,"height":11}},{"id":"9719b32c-235d-48a5-b888-34fc218a2e12","block_type":"box","text":"the amount of dividends and distributions available for payment by the Fund to its shareholders; prepare and arrange","page_number":37,"box":{"x":68,"y":799,"width":836,"height":11}},{"id":"3804348c-e3d8-4550-affc-cbd1094ef22e","block_type":"box","text":"for the printing of dividend notices to shareholders; provide Fund service providers with such information as is","page_number":37,"box":{"x":68,"y":814,"width":785,"height":11}},{"id":"cae6fbec-cd48-4b1b-952f-34575a00218b","block_type":"box","text":"required to effect the payment of dividends and distributions; and serve as liaison with the Trust’s officers,","page_number":37,"box":{"x":69,"y":829,"width":765,"height":11}},{"id":"16231c86-8d43-46fe-bb62-d47d586239ed","block_type":"box","text":"independent accountants, legal counsel, custodian, accounting agent and transfer and dividend disbursing agent in","page_number":37,"box":{"x":70,"y":844,"width":819,"height":11}},{"id":"85938313-2ab3-4c2b-8723-9ceb7b87f044","block_type":"box","text":"establishing the accounting policies of the Fund and monitoring financial and shareholder accounting services. The","page_number":37,"box":{"x":69,"y":859,"width":818,"height":11}},{"id":"94a18db9-8b91-468a-b313-43027af47776","block_type":"box","text":"Administrator may from time to time voluntarily waive administration fees with respect to the Fund and may voluntarily","page_number":37,"box":{"x":68,"y":874,"width":840,"height":11}},{"id":"7d2b527b-bf7d-40ae-a757-8750fdc64905","block_type":"box","text":"reimburse the Fund for expenses.","page_number":37,"box":{"x":69,"y":889,"width":238,"height":11}},{"id":"1b6da548-f0d4-475e-a478-3f01cded49b7","block_type":"box","text":"I-19","page_number":37,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"632b312f-f68b-42bc-b5a1-e031b644a13b","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":37,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"69288535-12b8-4f06-8d1f-0e679ed454d4","block_type":"box","text":"Under the Administration Agreement, the Trust, on behalf of the Fund, pays to the Administrator a fee, computed","page_number":38,"box":{"x":102,"y":45,"width":802,"height":11}},{"id":"6e6c7775-cf42-41af-9662-9cb0f6aee8c7","block_type":"box","text":"daily and payable monthly, at an aggregate annual rate of (i) 0.0425% of the first $500 million of the Fund’s average","page_number":38,"box":{"x":69,"y":59,"width":830,"height":12}},{"id":"0aeb8d71-b5ed-4d0c-a0a7-af6328fa2d9d","block_type":"box","text":"daily net assets, 0.040% of the next $500 million of the Fund’s average daily net assets, 0.0375% of the next","page_number":38,"box":{"x":69,"y":74,"width":788,"height":12}},{"id":"5d84e380-3f00-4a0c-ae11-d0dcd3659f00","block_type":"box","text":"$1 billion of the Fund’s average daily net assets, 0.035% of the next $2 billion of the Fund’s average daily net","page_number":38,"box":{"x":69,"y":89,"width":785,"height":12}},{"id":"75d9a3d7-f3bd-46c5-9b48-ee4ed51eeaff","block_type":"box","text":"assets, 0.0325% of the next $9 billion of the Fund’s average daily net assets and 0.030% of the average daily net","page_number":38,"box":{"x":69,"y":104,"width":816,"height":12}},{"id":"b2227a83-a5f2-451c-a16d-2dbd9b22aca3","block_type":"box","text":"assets of the Fund in excess of $13 billion and (ii) 0.020% of average daily net assets allocated to each class of","page_number":38,"box":{"x":69,"y":120,"width":805,"height":12}},{"id":"d2584aae-f5a4-461c-b72d-6d13fa44deea","block_type":"box","text":"shares of the Fund.","page_number":38,"box":{"x":69,"y":135,"width":137,"height":9}},{"id":"be05eaea-ce7e-44f7-b1da-a0b17a15c7c6","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":38,"box":{"x":101,"y":158,"width":793,"height":11}},{"id":"c1b39a54-209c-4fba-b832-f32c5dc1b14f","block_type":"box","text":"the Administrator, and the amounts waived, for the periods shown.","page_number":38,"box":{"x":68,"y":173,"width":474,"height":11}},{"id":"5e59b2b3-101c-4d76-ac33-a7cc8da7639f","block_type":"box","text":"Fees Paid","page_number":38,"box":{"x":734,"y":201,"width":55,"height":8}},{"id":"62c4e9b6-0486-40bc-8566-f6223aca4bb3","block_type":"box","text":"to the","page_number":38,"box":{"x":744,"y":212,"width":34,"height":7}},{"id":"1438094b-2342-4b8e-8470-fc6e4ad67232","block_type":"box","text":"Administrator","page_number":38,"box":{"x":722,"y":222,"width":79,"height":7}},{"id":"d6f25aba-3880-4cc6-b5f7-f97cf97084b8","block_type":"box","text":"Fees Waived","page_number":38,"box":{"x":834,"y":201,"width":72,"height":8}},{"id":"7a3a722b-26a4-4ce7-a188-a295327dd25a","block_type":"box","text":"by the","page_number":38,"box":{"x":853,"y":212,"width":35,"height":8}},{"id":"5403867c-1bac-4db9-bf1a-be22e8442649","block_type":"box","text":"Administrator","page_number":38,"box":{"x":830,"y":222,"width":79,"height":7}},{"id":"ff78ea5a-c393-4fdb-b93c-3f56e79ff91c","block_type":"box","text":"Fiscal Year Ended May 31, 2026 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":38,"box":{"x":70,"y":239,"width":490,"height":11}},{"id":"00e064b6-f0f6-4550-a1e8-4cb64a0462b4","block_type":"box","text":"................","page_number":38,"box":{"x":567,"y":247,"width":124,"height":1}},{"id":"669b2e15-d98c-4b4c-95b4-a58caa7b9d25","block_type":"box","text":"$961,656 $321,424","page_number":38,"box":{"x":726,"y":239,"width":180,"height":11}},{"id":"e3ce96c1-ef10-486a-a21a-4312a4ccc23b","block_type":"box","text":"Fiscal Year Ended May 31, 2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":38,"box":{"x":70,"y":255,"width":490,"height":11}},{"id":"c6a7406d-f7b0-444b-b225-0779b0077fb9","block_type":"box","text":"................","page_number":38,"box":{"x":567,"y":262,"width":124,"height":1}},{"id":"89ab055f-8ed0-43b4-a3a0-c87c90620d82","block_type":"box","text":"$799,500 $265,047","page_number":38,"box":{"x":726,"y":254,"width":179,"height":11}},{"id":"dbd532da-af24-460c-b287-87ae59cab89a","block_type":"box","text":"Fiscal Year Ended May 31, 2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":38,"box":{"x":70,"y":270,"width":490,"height":11}},{"id":"e3032c76-455b-4ceb-a3b1-ef6b610ecac8","block_type":"box","text":"................","page_number":38,"box":{"x":567,"y":277,"width":124,"height":1}},{"id":"f5daa10d-8e66-4f2f-a3e1-6c0ee8e37f61","block_type":"box","text":"$658,011 $213,043","page_number":38,"box":{"x":726,"y":269,"width":180,"height":11}},{"id":"d0a2ad46-9513-4498-9ba3-865c21b6a5e1","block_type":"box","text":"The Trust and its service providers may engage third par ty plan administrators who provide trustee,","page_number":38,"box":{"x":101,"y":294,"width":708,"height":11}},{"id":"93a62d71-510a-4980-a46e-f5ab651f3d34","block_type":"box","text":"administrative and recordkeeping services for cer tain employee benefit, profit-sharing and retirement plans as agents","page_number":38,"box":{"x":69,"y":309,"width":838,"height":11}},{"id":"614b6ef2-8d3f-4bd1-afcf-155734cc6001","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":38,"box":{"x":68,"y":324,"width":800,"height":11}},{"id":"ab3a1310-d4bc-4380-8d55-71e0c23ef650","block_type":"box","text":"shares of the Trust.","page_number":38,"box":{"x":69,"y":339,"width":138,"height":9}},{"id":"c4412239-2b1a-41f7-af73-76cb6aa60610","block_type":"box","text":"In addition, pursuant to a Shareholders’ Administrative Services Agreement, BlackRock provides cer tain","page_number":38,"box":{"x":102,"y":362,"width":740,"height":11}},{"id":"a2c6810f-0ad5-43c0-a54e-2b14b164a6d7","block_type":"box","text":"shareholder liaison services in connection with the Trust’s investor service center. The Trust, on behalf of the Fund,","page_number":38,"box":{"x":69,"y":377,"width":824,"height":10}},{"id":"448a6736-927b-4b3d-baaf-00afd6b1d1f2","block_type":"box","text":"reimburses BlackRock for its costs in maintaining the service center, which costs include, among other things,","page_number":38,"box":{"x":69,"y":392,"width":787,"height":11}},{"id":"9a98617c-8ee6-4e38-a415-33666fa5d85f","block_type":"box","text":"employee salaries, leasehold expenses, and other out-of-pocket expenses.","page_number":38,"box":{"x":69,"y":407,"width":531,"height":11}},{"id":"0fdc886e-8686-47f8-bc64-c4a3622f1ea6","block_type":"box","text":"For the periods shown, the Trust, on behalf of the Fund, reimbursed to BlackRock fees for shareholder liaison","page_number":38,"box":{"x":102,"y":429,"width":779,"height":11}},{"id":"b263b85b-2e0f-4f22-9875-f0c704157982","block_type":"box","text":"services pursuant to such agreement and BlackRock waived shareholder liaison services fees, as follows:","page_number":38,"box":{"x":69,"y":445,"width":756,"height":11}},{"id":"79cddd20-0515-4cc5-9434-1cc1e2c0b54e","block_type":"box","text":"Fees Paid","page_number":38,"box":{"x":742,"y":473,"width":56,"height":7}},{"id":"43a08fb6-3b5a-41c7-b567-c95f31ce8208","block_type":"box","text":"to","page_number":38,"box":{"x":764,"y":483,"width":12,"height":7}},{"id":"4df32061-02d7-460a-9db6-1199a8a7cd16","block_type":"box","text":"BlackRock","page_number":38,"box":{"x":739,"y":493,"width":63,"height":7}},{"id":"86f305c5-bdb8-4412-837e-dba7594e51dd","block_type":"box","text":"Fees Waived","page_number":38,"box":{"x":837,"y":473,"width":72,"height":7}},{"id":"3b3cc5d4-0d98-439a-a5e3-6b4bec872325","block_type":"box","text":"by","page_number":38,"box":{"x":867,"y":483,"width":12,"height":9}},{"id":"86a196a0-f4b3-4ed8-b769-3baeccdb09e1","block_type":"box","text":"BlackRock","page_number":38,"box":{"x":842,"y":493,"width":62,"height":7}},{"id":"9d9a0b45-78a2-4421-aa3e-df928a1b2258","block_type":"box","text":"Fiscal Year Ended May 31, 2026 . . . . . . .","page_number":38,"box":{"x":70,"y":511,"width":290,"height":11}},{"id":"045e8980-35b5-4fb6-b73d-300cdf79e1cc","block_type":"box","text":"..........................................","page_number":38,"box":{"x":366,"y":518,"width":336,"height":2}},{"id":"c8327bac-5da0-42b1-8c07-630b08d2c7e5","block_type":"box","text":"$112,497 $112,497","page_number":38,"box":{"x":734,"y":510,"width":174,"height":11}},{"id":"46651601-8090-4eb3-9938-f7cac4a8aeec","block_type":"box","text":"Fiscal Year Ended May 31, 2025 . . . . . . .","page_number":38,"box":{"x":70,"y":526,"width":290,"height":11}},{"id":"27fbe9fa-33d6-40c9-9464-1eb87bfd8ce8","block_type":"box","text":"..........................................","page_number":38,"box":{"x":366,"y":533,"width":336,"height":2}},{"id":"ade61c4b-ee09-4ac8-a8be-d2ce81acb5c4","block_type":"box","text":"$104,586 $104,586","page_number":38,"box":{"x":734,"y":525,"width":175,"height":11}},{"id":"ccc8066d-fb3b-4670-93cc-1f43b3bd17e7","block_type":"box","text":"Fiscal Year Ended May 31, 2024 . . . . . . .","page_number":38,"box":{"x":70,"y":541,"width":290,"height":11}},{"id":"37302298-1d0c-4d18-a68c-6a124ead8ec5","block_type":"box","text":"..........................................","page_number":38,"box":{"x":366,"y":548,"width":336,"height":2}},{"id":"c45bbef2-4c3e-492a-8aeb-b8259035ab24","block_type":"box","text":"$126,007 $124,405","page_number":38,"box":{"x":734,"y":540,"width":175,"height":12}},{"id":"40a3f5ea-5e36-4117-aa16-ad5f63dd7948","block_type":"box","text":"Information Regarding the Portfolio Managers","page_number":38,"box":{"x":69,"y":573,"width":335,"height":11}},{"id":"03c82ea8-27f2-4531-a4a6-676288755e87","block_type":"box","text":"Raffaele Savi, Travis Cooke, CFA, and Richard Mathieson are the por tfolio managers and are jointly and primarily","page_number":38,"box":{"x":102,"y":595,"width":803,"height":11}},{"id":"4af8562e-5f0d-41fa-a1d8-f2b99655665f","block_type":"box","text":"responsible for the day-to-day management of the Fund.","page_number":38,"box":{"x":69,"y":610,"width":395,"height":12}},{"id":"7198a045-a10b-493a-91d5-57641f0c5a12","block_type":"box","text":"Other Funds and Accounts Managed","page_number":38,"box":{"x":70,"y":641,"width":265,"height":11}},{"id":"6e662b2a-a78b-4b0f-b023-417c3e065ae9","block_type":"box","text":"The following table sets for th information about funds and accounts other than the Fund for which the por tfolio","page_number":38,"box":{"x":101,"y":663,"width":790,"height":12}},{"id":"d1c6c52f-53b7-4b11-a00d-56318a16500b","block_type":"box","text":"managers are primarily responsible for the day-to-day por tfolio management as of May 31, 2026.","page_number":38,"box":{"x":69,"y":678,"width":691,"height":12}},{"id":"60aad51e-4d99-4494-9b5a-286b25882aa6","block_type":"box","text":"Number of Other Accounts Managed","page_number":38,"box":{"x":365,"y":707,"width":211,"height":8}},{"id":"7a3a4f1f-b825-4475-aec8-18ae1383d9f5","block_type":"box","text":"and Assets by Account Type","page_number":38,"box":{"x":388,"y":717,"width":165,"height":9}},{"id":"2a3c1c00-1a29-46a6-af30-f2be295f5eed","block_type":"box","text":"Number of Other Accounts and Assets","page_number":38,"box":{"x":655,"y":707,"width":222,"height":7}},{"id":"c818296d-d807-402d-8b23-83940bd89aac","block_type":"box","text":"for Which Advisory Fee is Performance-Based","page_number":38,"box":{"x":633,"y":717,"width":265,"height":9}},{"id":"39a873df-dcfb-45d1-9e6c-61035b208e94","block_type":"box","text":"Name of Portfolio Manager","page_number":38,"box":{"x":74,"y":760,"width":157,"height":8}},{"id":"8ef0b33e-f077-4b1d-9941-015eefee1038","block_type":"box","text":"Other","page_number":38,"box":{"x":354,"y":729,"width":31,"height":7}},{"id":"b81fbfa0-202c-47a8-9c6c-67464f5bd4d1","block_type":"box","text":"Registered","page_number":38,"box":{"x":338,"y":739,"width":62,"height":9}},{"id":"9b14714a-9c2b-4290-ad45-e6a8e1d86f90","block_type":"box","text":"Investment","page_number":38,"box":{"x":337,"y":750,"width":65,"height":7}},{"id":"c93b55df-38e5-4a5c-a2b8-4320c9d4a751","block_type":"box","text":"Companies","page_number":38,"box":{"x":337,"y":760,"width":64,"height":8}},{"id":"46f4a93c-e59f-46f2-a4d8-351440162a23","block_type":"box","text":"Other Pooled","page_number":38,"box":{"x":433,"y":739,"width":75,"height":8}},{"id":"0d28730f-328e-47b7-9a47-cd475e4b34a8","block_type":"box","text":"Investment","page_number":38,"box":{"x":439,"y":750,"width":64,"height":7}},{"id":"07a751a2-eabe-424d-a950-061ac57a43c5","block_type":"box","text":"Vehicles","page_number":38,"box":{"x":446,"y":760,"width":48,"height":7}},{"id":"a2d588c6-412a-44db-93dc-b850938daee1","block_type":"box","text":"Other","page_number":38,"box":{"x":556,"y":749,"width":32,"height":8}},{"id":"d2c5beb9-519d-4140-96e0-2cc4ceb8ed30","block_type":"box","text":"Accounts","page_number":38,"box":{"x":544,"y":760,"width":55,"height":7}},{"id":"5124b2ba-083a-4d47-87a4-e73fe0c11fc1","block_type":"box","text":"Other","page_number":38,"box":{"x":649,"y":729,"width":32,"height":7}},{"id":"cb85dd2c-f15d-4fdd-b5b3-c292cef0ef3a","block_type":"box","text":"Registered","page_number":38,"box":{"x":634,"y":739,"width":62,"height":9}},{"id":"84445e4e-04e3-4671-aac8-3a672063eae8","block_type":"box","text":"Investment","page_number":38,"box":{"x":633,"y":750,"width":64,"height":7}},{"id":"d43fbd03-34a3-4fbc-979b-ac133efb1303","block_type":"box","text":"Companies","page_number":38,"box":{"x":633,"y":760,"width":63,"height":8}},{"id":"5a82b1ea-46e0-4580-b9bf-d7c415761763","block_type":"box","text":"Other Pooled","page_number":38,"box":{"x":720,"y":739,"width":75,"height":8}},{"id":"2687385d-7ace-4e9b-a7cc-72709ac4f64a","block_type":"box","text":"Investment","page_number":38,"box":{"x":726,"y":750,"width":64,"height":7}},{"id":"d912f729-c349-4774-8659-f797995d5d18","block_type":"box","text":"Vehicles","page_number":38,"box":{"x":734,"y":760,"width":48,"height":7}},{"id":"055616d0-5fa9-484a-a41e-56504d69c79d","block_type":"box","text":"Other","page_number":38,"box":{"x":843,"y":749,"width":32,"height":8}},{"id":"d090802a-c3aa-4e22-bd03-2a387f0f4931","block_type":"box","text":"Accounts","page_number":38,"box":{"x":832,"y":760,"width":54,"height":7}},{"id":"8604f9c4-34ed-4fc8-8816-bf07ebfd2b48","block_type":"box","text":"Travis Cooke, CFA 30 129 20 0 4 6","page_number":38,"box":{"x":73,"y":773,"width":789,"height":9}},{"id":"b767008f-9720-47b5-9569-38655c3b29d5","block_type":"box","text":"$30.32 Billion $32.31 Billion $20.01 Billion $0 $8.44 Billion $6.67 Billion","page_number":38,"box":{"x":329,"y":785,"width":566,"height":9}},{"id":"2ea2a958-b93a-4881-a6a3-78e769243032","block_type":"box","text":"Richard Mathieson 35 423 46 0 5 9","page_number":38,"box":{"x":74,"y":799,"width":788,"height":7}},{"id":"7124a212-33e1-4312-b36a-64bf6a156d35","block_type":"box","text":"$43.03 Billion $51.33 Billion $81.28 Billion $0 $3.46 Billion $15.63 Billion","page_number":38,"box":{"x":329,"y":811,"width":570,"height":8}},{"id":"7337513d-493b-4b63-8e4f-ce6c17bc7024","block_type":"box","text":"Raffaele Savi 38 67 19 0 12 3","page_number":38,"box":{"x":74,"y":824,"width":788,"height":7}},{"id":"0dd742b5-db0a-4969-8c57-d6601552aec6","block_type":"box","text":"$54.14 Billion $58.02 Billion $42.55 Billion $0 $22.75 Billion $4.93 Billion","page_number":38,"box":{"x":329,"y":836,"width":566,"height":8}},{"id":"b66bc5be-97a6-4e91-9fa8-2fe8d1794009","block_type":"box","text":"Por tfolio Manager Compensation Overview","page_number":38,"box":{"x":69,"y":870,"width":304,"height":12}},{"id":"84b1ba92-7d55-46bd-97b2-1e5677bba407","block_type":"box","text":"The discussion below describes the por tfolio managers’ compensation as of May 31, 2026.","page_number":38,"box":{"x":101,"y":893,"width":656,"height":11}},{"id":"d5006b7b-2bd7-449b-8729-646354b88fbd","block_type":"box","text":"I-20","page_number":38,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"78b8f1fa-dacc-47a7-93b5-d406e1940c90","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":38,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"fd47198d-ba22-4047-b211-3deab7444d5d","block_type":"box","text":"BlackRock’s financial arrangements with its por tfolio managers, its competitive compensation and its career","page_number":39,"box":{"x":102,"y":45,"width":774,"height":11}},{"id":"b732ac87-9ffe-4d6f-99f2-df72b284099d","block_type":"box","text":"path emphasis at all levels reflect the value senior management places on key resources. Compensation may include","page_number":39,"box":{"x":70,"y":60,"width":837,"height":11}},{"id":"9c0f14b4-d338-449c-9e3f-5cb513efc09a","block_type":"box","text":"a variety of components and may vary from year to year based on a number of factors. The principal components of","page_number":39,"box":{"x":69,"y":75,"width":823,"height":11}},{"id":"bf5f488b-7de4-4380-8eab-846f046980c2","block_type":"box","text":"compensation include a base salary, a per formance-based discretionary bonus, par ticipation in various benefits","page_number":39,"box":{"x":69,"y":90,"width":799,"height":11}},{"id":"961c5d33-6dea-4a08-b1f9-cb576bb53e36","block_type":"box","text":"programs and one or more of the incentive compensation programs established by BlackRock.","page_number":39,"box":{"x":70,"y":105,"width":670,"height":11}},{"id":"a71f3fe9-7db9-4c44-aa64-f944cdc42705","block_type":"box","text":"Base Compensation.","page_number":39,"box":{"x":102,"y":128,"width":148,"height":11}},{"id":"e8cdf07f-9824-4871-89b6-51bc406b85a0","block_type":"box","text":"Generally, por tfolio managers receive base compensation based on their position with the","page_number":39,"box":{"x":257,"y":128,"width":640,"height":11}},{"id":"963b822f-74c9-4f11-9307-a620821fa007","block_type":"box","text":"firm.","page_number":39,"box":{"x":68,"y":143,"width":32,"height":9}},{"id":"a1f7a4d3-0d8c-4a92-ad1e-f4f1e50bcf32","block_type":"box","text":"Discretionary Incentive Compensation","page_number":39,"box":{"x":69,"y":173,"width":277,"height":11}},{"id":"7c29396c-0c3e-4b69-8f36-94abb6cdffa2","block_type":"box","text":"Discretionary incentive compensation is a function of several components: the per formance of BlackRock, Inc.,","page_number":39,"box":{"x":102,"y":196,"width":792,"height":11}},{"id":"133f455b-75d8-4241-8d6e-2f6a927d67c6","block_type":"box","text":"the per formance of the por tfolio manager’s group within BlackRock, the investment per formance, including risk","page_number":39,"box":{"x":68,"y":211,"width":800,"height":11}},{"id":"65321ccb-e50a-4b81-9875-cdb524bee302","block_type":"box","text":"adjusted returns, of the firm’s assets under management or supervision by that por tfolio manager relative to","page_number":39,"box":{"x":69,"y":226,"width":777,"height":11}},{"id":"9fe4573d-cd57-4286-9938-e19be204196d","block_type":"box","text":"predetermined benchmarks, and the individual’s per formance and contribution to the overall per formance of these","page_number":39,"box":{"x":70,"y":241,"width":817,"height":11}},{"id":"9e4bf6ba-c12d-4871-9d49-f436755b16c1","block_type":"box","text":"por tfolios and BlackRock. Among other things, BlackRock’s Chief Investment Officers make a subjective","page_number":39,"box":{"x":70,"y":256,"width":741,"height":12}},{"id":"b25143c2-18eb-475e-8f8b-c98c20b6d76c","block_type":"box","text":"determination with respect to each por tfolio manager’s compensation based on the per formance of the Funds and","page_number":39,"box":{"x":69,"y":271,"width":818,"height":12}},{"id":"778e163e-5dd9-4909-91c1-fabd3b135c63","block_type":"box","text":"other accounts managed by each por tfolio manager relative to the various benchmarks. Per formance is generally","page_number":39,"box":{"x":69,"y":286,"width":806,"height":12}},{"id":"78d45610-8029-4eb8-9bbc-d4f23621beff","block_type":"box","text":"assessed over trailing 1-, 3-, and 5-year periods relative to applicable benchmarks. The per formance of Messrs. Savi,","page_number":39,"box":{"x":69,"y":302,"width":836,"height":11}},{"id":"b7a18918-d3ed-4119-992d-e6c016243587","block_type":"box","text":"Cooke and Mathieson is not measured against a specific benchmark.","page_number":39,"box":{"x":69,"y":317,"width":493,"height":11}},{"id":"656a4b0e-0b39-4b00-8e7f-4e0f6a47aab7","block_type":"box","text":"Distribution of Discretionary Incentive Compensation.","page_number":39,"box":{"x":102,"y":339,"width":389,"height":12}},{"id":"288e11b7-eff8-4d33-ba11-daacb633b769","block_type":"box","text":"Discretionary incentive compensation is distributed to","page_number":39,"box":{"x":499,"y":340,"width":383,"height":11}},{"id":"2adc2144-080c-4cd4-8baa-7cf1dc9f18f8","block_type":"box","text":"por tfolio managers in a combination of cash, deferred BlackRock, Inc. stock awards, and/or deferred cash awards","page_number":39,"box":{"x":70,"y":355,"width":815,"height":11}},{"id":"dc76d142-1f29-46f1-9e99-e86651d4f435","block_type":"box","text":"that notionally track the return of cer tain BlackRock investment products.","page_number":39,"box":{"x":68,"y":370,"width":522,"height":11}},{"id":"d6b44f7d-4db4-44e9-b590-8f204df6c46e","block_type":"box","text":"Por tfolio managers receive their annual discretionary incentive compensation in the form of cash. Por tfolio","page_number":39,"box":{"x":102,"y":392,"width":760,"height":12}},{"id":"2d241e74-b70f-4770-927b-51c55974e71f","block_type":"box","text":"managers whose total compensation is above a specified threshold also receive deferred BlackRock, Inc. stock","page_number":39,"box":{"x":69,"y":407,"width":795,"height":12}},{"id":"f165011b-9852-4f75-9096-1cc34696165d","block_type":"box","text":"awards annually as par t of their discretionary incentive compensation. Paying a por tion of discretionary incentive","page_number":39,"box":{"x":69,"y":423,"width":805,"height":11}},{"id":"ceb2a252-89c9-4dbc-8e1d-3742bca60d7e","block_type":"box","text":"compensation in the form of deferred BlackRock, Inc. stock puts compensation earned by a por tfolio manager for a","page_number":39,"box":{"x":69,"y":438,"width":822,"height":11}},{"id":"778f3b23-6d14-42b3-adec-f4a2ce92a89c","block_type":"box","text":"given year “at risk” based on BlackRock’s ability to sustain and improve its per formance over future periods. In some","page_number":39,"box":{"x":68,"y":453,"width":839,"height":11}},{"id":"294fc83b-3ad5-4085-99f7-61eedc68cf0b","block_type":"box","text":"cases, additional deferred BlackRock, Inc. stock may be granted to cer tain key employees as par t of a long-term","page_number":39,"box":{"x":69,"y":468,"width":802,"height":11}},{"id":"094b89af-520b-41ac-a4b9-49e04490e0f6","block_type":"box","text":"incentive award to aid in retention, align interests with long-term shareholders and motivate per formance. Deferred","page_number":39,"box":{"x":70,"y":483,"width":820,"height":11}},{"id":"2e57a717-8c13-429d-9e02-56b3cf9918eb","block_type":"box","text":"BlackRock, Inc. stock awards are generally granted in the form of BlackRock, Inc. restricted stock units that vest","page_number":39,"box":{"x":70,"y":498,"width":801,"height":11}},{"id":"54df7bb8-2e3b-4eb7-9364-314759e9c53f","block_type":"box","text":"pursuant to the terms of the applicable plan and, once vested, settle in BlackRock, Inc. common stock. The por tfolio","page_number":39,"box":{"x":70,"y":513,"width":831,"height":11}},{"id":"8ecb4ff1-d7c9-4578-bf4c-db7099c2d762","block_type":"box","text":"managers of this Fund have deferred BlackRock, Inc. stock awards.","page_number":39,"box":{"x":69,"y":528,"width":479,"height":12}},{"id":"26f262f1-fe2d-4e55-8880-4afc0fcc16af","block_type":"box","text":"For cer tain por tfolio managers, a por tion of the discretionary incentive compensation is also distributed in the","page_number":39,"box":{"x":102,"y":551,"width":785,"height":11}},{"id":"e88575b0-aadc-44ad-b7aa-4158ffcd987e","block_type":"box","text":"form of deferred cash awards that notionally track the returns of select BlackRock investment products they manage,","page_number":39,"box":{"x":68,"y":566,"width":836,"height":11}},{"id":"a5ed5c91-efb5-4ce8-8930-9f15c754e543","block_type":"box","text":"which provides direct alignment of por tfolio manager discretionary incentive compensation with investment product","page_number":39,"box":{"x":68,"y":581,"width":821,"height":12}},{"id":"4f09f076-c15b-4ef8-8469-d77ce04b33da","block_type":"box","text":"results. Deferred cash awards vest ratably over a number of years and, once vested, settle in the form of cash. Only","page_number":39,"box":{"x":69,"y":596,"width":829,"height":12}},{"id":"afe707e9-60d6-4f10-bc33-4c8dcb54422c","block_type":"box","text":"por tfolio managers who manage specified products and whose total compensation is above a specified threshold are","page_number":39,"box":{"x":70,"y":612,"width":835,"height":11}},{"id":"7b46209f-5ac3-439a-87e6-98055f67b06a","block_type":"box","text":"eligible to par ticipate in the deferred cash award program.","page_number":39,"box":{"x":69,"y":627,"width":414,"height":11}},{"id":"f23915f5-f3f0-4944-9997-41fb56fcfddc","block_type":"box","text":"Other Compensation Benefits.","page_number":39,"box":{"x":101,"y":649,"width":218,"height":11}},{"id":"165bc315-40e7-4027-a584-dd8908ac5039","block_type":"box","text":"In addition to base salary and discretionary incentive compensation, por tfolio","page_number":39,"box":{"x":327,"y":649,"width":552,"height":12}},{"id":"ee448283-b6b5-4ed4-83ed-55b78b2070d8","block_type":"box","text":"managers may be eligible to receive or par ticipate in one or more of the following:","page_number":39,"box":{"x":69,"y":664,"width":582,"height":12}},{"id":"96ada8b5-3a81-4ab9-a75c-027a6fc57b4a","block_type":"box","text":"Incentive Savings Plans","page_number":39,"box":{"x":102,"y":687,"width":167,"height":11}},{"id":"891e1086-5abd-4ee0-a202-eb843343bfea","block_type":"box","text":"— BlackRock, Inc. has created a variety of incentive savings plans in which BlackRock","page_number":39,"box":{"x":274,"y":687,"width":614,"height":11}},{"id":"a82c26d5-dd4d-46ad-830a-34dc4fdc5eb5","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":39,"box":{"x":69,"y":702,"width":831,"height":12}},{"id":"ec41fe67-4a18-498d-8f11-c2533a7f2748","block_type":"box","text":"BlackRock Employee Stock Purchase Plan (ESPP). The employer contribution components of the RSP include a","page_number":39,"box":{"x":70,"y":717,"width":785,"height":12}},{"id":"b3ee1b0b-e561-4045-b560-327aa162c093","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":39,"box":{"x":69,"y":732,"width":830,"height":12}},{"id":"c76bc898-157e-4de1-ae19-35f3289c2bf0","block_type":"box","text":"company retirement contribution equal to 3-5% of eligible compensation up to the Internal Revenue Service limit","page_number":39,"box":{"x":69,"y":748,"width":799,"height":11}},{"id":"815c254e-1d0e-4786-978e-ccdb9a256d55","block_type":"box","text":"($360,000 for 2026). The RSP offers a range of investment options, including registered investment companies and","page_number":39,"box":{"x":69,"y":762,"width":831,"height":12}},{"id":"f1421241-c4c1-4f63-b3a5-19394929d12f","block_type":"box","text":"collective investment funds managed by the firm. BlackRock contributions follow the investment direction set by","page_number":39,"box":{"x":69,"y":778,"width":798,"height":11}},{"id":"25e63262-9539-4af8-8548-0e59caaf1059","block_type":"box","text":"par ticipants for their own contributions or, absent par ticipant investment direction, are invested into a target date","page_number":39,"box":{"x":70,"y":793,"width":809,"height":11}},{"id":"894bcc67-f742-4281-a8c3-27eb9be32814","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":39,"box":{"x":68,"y":808,"width":793,"height":11}},{"id":"e4ba4fdd-4f62-4509-8e14-a301d03f5468","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":39,"box":{"x":70,"y":823,"width":832,"height":11}},{"id":"23c8567e-e120-41a0-85c5-095ad99c76c8","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":39,"box":{"x":68,"y":838,"width":805,"height":11}},{"id":"41e4ff83-cd37-451f-ac5c-53fc94640c99","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":39,"box":{"x":69,"y":853,"width":808,"height":12}},{"id":"6622bf41-5a79-4aba-a98d-fc8ab1707dcb","block_type":"box","text":"par ticipate in these plans.","page_number":39,"box":{"x":70,"y":869,"width":185,"height":11}},{"id":"6e1efbeb-d668-45ef-b35f-2a0be2e24a3c","block_type":"box","text":"I-21","page_number":39,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"c2a93f49-03ef-4b60-ae30-19eca9ab3934","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":39,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c78fcbe4-1439-4c7c-b6f1-d4590f88a227","block_type":"box","text":"Por tfolio Manager Beneficial Holdings","page_number":40,"box":{"x":69,"y":45,"width":268,"height":11}},{"id":"ba0d65ac-e530-4cde-b80b-730c19272829","block_type":"box","text":"As of May 31, 2026, the Fund’s most recently completed fiscal year end, the dollar range of securities","page_number":40,"box":{"x":101,"y":67,"width":731,"height":12}},{"id":"1eeee8f9-ee4f-4c3e-b0df-d7eecf25ea11","block_type":"box","text":"beneficially owned by the por tfolio managers in the Fund is shown below:","page_number":40,"box":{"x":69,"y":82,"width":519,"height":12}},{"id":"19e1d393-8791-4996-b8c4-934a9c405e2c","block_type":"box","text":"Portfolio Manager","page_number":40,"box":{"x":69,"y":121,"width":105,"height":9}},{"id":"f47ca2cf-a1f6-4d65-b8d3-cc1b140fbcac","block_type":"box","text":"Dollar Range of Equity","page_number":40,"box":{"x":758,"y":111,"width":129,"height":9}},{"id":"e8c21220-95f4-4a60-8d5c-dc65df70946f","block_type":"box","text":"Securities Beneficially Owned","page_number":40,"box":{"x":735,"y":121,"width":173,"height":9}},{"id":"06f969ff-6930-4b67-9f04-457960bee425","block_type":"box","text":"Raffaele Savi . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . None","page_number":40,"box":{"x":70,"y":138,"width":770,"height":9}},{"id":"d4848318-49ae-487f-b56a-359d050979db","block_type":"box","text":"Travis Cooke, CFA","page_number":40,"box":{"x":68,"y":154,"width":127,"height":10}},{"id":"e5627369-c5c3-4d36-85eb-e7f3b50c84a5","block_type":"box","text":"..............................................................","page_number":40,"box":{"x":205,"y":161,"width":499,"height":1}},{"id":"dd4eb480-c7ac-4144-b361-49a5d2d1c366","block_type":"box","text":"$500,001 - $1,000,000","page_number":40,"box":{"x":736,"y":153,"width":173,"height":11}},{"id":"66ee60d0-9621-49de-bc5b-974fb9d2d2e3","block_type":"box","text":"Richard Mathieson","page_number":40,"box":{"x":70,"y":169,"width":131,"height":9}},{"id":"6ab3a7ae-ed53-4411-8adf-ddb5a431eb3b","block_type":"box","text":".............................................................","page_number":40,"box":{"x":213,"y":176,"width":491,"height":2}},{"id":"ae390620-6778-4832-843d-e500cbe39dae","block_type":"box","text":"$50,001 - $100,000","page_number":40,"box":{"x":748,"y":168,"width":149,"height":11}},{"id":"b27e1868-6c97-483e-8c98-957796a03623","block_type":"box","text":"Por tfolio Manager Potential Material Conflicts of Interest","page_number":40,"box":{"x":69,"y":200,"width":403,"height":12}},{"id":"406f6020-39a2-49a4-83c2-fc06c8c85ec7","block_type":"box","text":"BlackRock has built a professional working environment, firm-wide compliance culture and compliance","page_number":40,"box":{"x":102,"y":223,"width":727,"height":11}},{"id":"4f4c79d0-f3c9-46e6-8b1b-17c4074643a3","block_type":"box","text":"procedures and systems designed to protect against potential incentives that may favor one account over another.","page_number":40,"box":{"x":70,"y":238,"width":814,"height":11}},{"id":"3115d6c2-56f4-4146-a3ec-f621cce6a1e5","block_type":"box","text":"BlackRock has adopted policies and procedures that address the allocation of investment oppor tunities, execution of","page_number":40,"box":{"x":70,"y":253,"width":837,"height":11}},{"id":"61a0c572-df84-4fef-9584-78da76df6295","block_type":"box","text":"por tfolio transactions, personal trading by employees and other potential conflicts of interest that are designed to","page_number":40,"box":{"x":70,"y":268,"width":810,"height":12}},{"id":"9e5142d4-0c03-4f88-bff4-5d523300863e","block_type":"box","text":"ensure that all client accounts are treated equitably over time. Never theless, BlackRock furnishes investment","page_number":40,"box":{"x":69,"y":283,"width":782,"height":12}},{"id":"71da0ebd-eecf-4a47-9c8e-b97c90816eae","block_type":"box","text":"management and advisory services to numerous clients in addition to the Fund, and BlackRock may, consistent with","page_number":40,"box":{"x":69,"y":299,"width":830,"height":11}},{"id":"955ba7bb-549f-40a5-9e17-b37582ba32ff","block_type":"box","text":"applicable law, make investment recommendations to other clients or accounts (including accounts which are hedge","page_number":40,"box":{"x":69,"y":314,"width":828,"height":11}},{"id":"fc9e62d8-e1a9-4e38-a2a2-d3cbe144a149","block_type":"box","text":"funds or have per formance or higher fees paid to BlackRock, or in which por tfolio managers have a personal interest","page_number":40,"box":{"x":68,"y":329,"width":834,"height":11}},{"id":"13abfd6f-c76e-4871-97fc-0021231c383c","block_type":"box","text":"in the receipt of such fees), which may be the same as or different from those made to the Fund. In addition,","page_number":40,"box":{"x":70,"y":344,"width":777,"height":11}},{"id":"d75573ee-5073-4214-8650-2220d3765c35","block_type":"box","text":"BlackRock, its affiliates and significant shareholders and any officer, director, shareholder or employee may or may","page_number":40,"box":{"x":70,"y":359,"width":821,"height":11}},{"id":"21023394-f213-465d-82f1-d2ba177d8b48","block_type":"box","text":"not have an interest in the securities whose purchase and sale BlackRock recommends to the Fund. BlackRock, or","page_number":40,"box":{"x":69,"y":374,"width":819,"height":11}},{"id":"863c1bfd-9cdb-4e2c-b35b-bce7a012c87a","block_type":"box","text":"any of its affiliates or significant shareholders, or any officer, director, shareholder, employee or any member of their","page_number":40,"box":{"x":69,"y":389,"width":832,"height":11}},{"id":"2ec1adec-aae0-425e-9cb3-c218b1a86e78","block_type":"box","text":"families may take different actions than those recommended to the Fund by BlackRock with respect to the same","page_number":40,"box":{"x":68,"y":404,"width":804,"height":11}},{"id":"9c8cab9f-1d47-44cc-a621-94413eedff75","block_type":"box","text":"securities. Moreover, BlackRock may refrain from rendering any advice or services concerning securities of","page_number":40,"box":{"x":69,"y":419,"width":760,"height":12}},{"id":"bd412e66-5dca-4a64-a168-427a66d36698","block_type":"box","text":"companies of which any of BlackRock’s (or its affiliates’ or significant shareholders’) officers, directors or employees","page_number":40,"box":{"x":69,"y":435,"width":834,"height":11}},{"id":"e334ed7c-a3a8-45c2-bb24-6dd6e6290e37","block_type":"box","text":"are directors or officers, or companies as to which BlackRock or any of its affiliates or significant shareholders or the","page_number":40,"box":{"x":69,"y":450,"width":836,"height":11}},{"id":"3676653e-2f78-4ffc-8a1d-606c6ff32775","block_type":"box","text":"officers, directors and employees of any of them has any substantial economic interest or possesses material non","page_number":40,"box":{"x":69,"y":465,"width":822,"height":11}},{"id":"0118859f-db27-45c2-aaab-16724741a936","block_type":"box","text":"public information. Cer tain por tfolio managers also may manage accounts whose investment strategies may at times","page_number":40,"box":{"x":70,"y":480,"width":835,"height":11}},{"id":"5d8ba234-5d8e-4303-a2af-b1fd4ef9dc02","block_type":"box","text":"be opposed to the strategy utilized for a fund. It should also be noted that Messrs. Savi, Cooke and Mathieson may","page_number":40,"box":{"x":69,"y":495,"width":825,"height":11}},{"id":"f5b945dd-1c32-4163-a607-96726012e683","block_type":"box","text":"be managing hedge fund and/or long only accounts, or may be par t of a team managing hedge fund and/or long only","page_number":40,"box":{"x":69,"y":510,"width":834,"height":11}},{"id":"893ec396-ad21-48d7-93a9-d09254e95bd8","block_type":"box","text":"accounts, subject to incentive fees. Messrs. Savi, Cooke and Mathieson may therefore be entitled to receive a","page_number":40,"box":{"x":69,"y":525,"width":788,"height":11}},{"id":"3eca9449-5b87-41e9-99b6-535e92658e96","block_type":"box","text":"por tion of any incentive fees earned on such accounts.","page_number":40,"box":{"x":70,"y":540,"width":390,"height":12}},{"id":"8840f798-d618-49b6-8bac-cd2bbb85284a","block_type":"box","text":"As a fiduciary, BlackRock owes a duty of loyalty to its clients and must treat each client fairly. When BlackRock","page_number":40,"box":{"x":101,"y":563,"width":788,"height":11}},{"id":"36b64357-90c5-473d-a349-a1b922e1a058","block_type":"box","text":"purchases or sells securities for more than one account, the trades must be allocated in a manner consistent with its","page_number":40,"box":{"x":70,"y":578,"width":839,"height":11}},{"id":"c04e307d-0128-48ec-a4d0-381c3a19e850","block_type":"box","text":"fiduciary duties. BlackRock attempts to allocate investments in a fair and equitable manner among client accounts,","page_number":40,"box":{"x":68,"y":593,"width":823,"height":12}},{"id":"e1400da9-3852-4856-836e-30f8aea1459f","block_type":"box","text":"with no account receiving preferential treatment. To this end, BlackRock has adopted policies that are intended to","page_number":40,"box":{"x":68,"y":608,"width":812,"height":12}},{"id":"da5e825b-d4b6-4757-b004-0f7365f9d48a","block_type":"box","text":"ensure reasonable efficiency in client transactions and provide BlackRock with sufficient flexibility to allocate","page_number":40,"box":{"x":69,"y":623,"width":777,"height":12}},{"id":"98a44192-9e2b-4ea8-ad46-71f261411bb5","block_type":"box","text":"investments in a manner that is consistent with the par ticular investment discipline and client base, as appropriate.","page_number":40,"box":{"x":70,"y":639,"width":826,"height":11}},{"id":"870437eb-32d7-4b6f-9f13-f42a502425bf","block_type":"box","text":"Accounting Services","page_number":40,"box":{"x":68,"y":669,"width":150,"height":11}},{"id":"48e36e2e-3845-4412-81f3-7598c8c4c53d","block_type":"box","text":"The Bank of New York Mellon (“BNY Mellon”) serves as the accounting services provider for the Fund. BNY","page_number":40,"box":{"x":101,"y":692,"width":762,"height":11}},{"id":"fa55dca4-a6dc-4601-a466-9ba9759ee9c9","block_type":"box","text":"Mellon records investment, capital share and income and expense activities; verifies and transmits trade tickets;","page_number":40,"box":{"x":70,"y":707,"width":804,"height":11}},{"id":"a2a4240d-5eb0-4c41-a5de-abbd16859a1f","block_type":"box","text":"maintains accounting ledgers for investment securities; maintains tax lots; reconciles cash with the Fund’s","page_number":40,"box":{"x":69,"y":722,"width":761,"height":11}},{"id":"724d5091-6bbf-47e3-bb5e-6791904ab7d1","block_type":"box","text":"custodian; repor ts cash balances to BlackRock; prepares cer tain financial statements; calculates expenses, gains,","page_number":40,"box":{"x":69,"y":737,"width":821,"height":11}},{"id":"b60536a9-347e-4315-93e6-a33679040e69","block_type":"box","text":"losses and income; controls disbursements; works with independent pricing sources; and computes and repor ts net","page_number":40,"box":{"x":70,"y":752,"width":829,"height":11}},{"id":"db35164c-a053-4100-9851-50b86055df3d","block_type":"box","text":"asset value. 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The Custodian, among other responsibilities, maintains a","page_number":41,"box":{"x":69,"y":82,"width":810,"height":12}},{"id":"2aac9c2e-70e0-4a2c-9930-0d9182aa732f","block_type":"box","text":"custody account or accounts in the name of the Fund, receives and delivers all assets for the Fund upon purchase","page_number":41,"box":{"x":69,"y":98,"width":815,"height":11}},{"id":"471d613e-fb2e-4152-acb6-5b0beba4f83b","block_type":"box","text":"and upon sale or maturity, and collects and receives all income and other payments and distributions on account of","page_number":41,"box":{"x":69,"y":113,"width":824,"height":11}},{"id":"9c4aa6f1-3291-4737-81ce-b19bfc8216e8","block_type":"box","text":"the assets of the Fund.","page_number":41,"box":{"x":68,"y":128,"width":165,"height":9}},{"id":"8262a407-a444-4e6c-a7c7-8eab620aa912","block_type":"box","text":"Transfer Agent","page_number":41,"box":{"x":68,"y":158,"width":107,"height":11}},{"id":"d4f229f1-b76d-4e94-83e3-602eea8232e5","block_type":"box","text":"BNY Mellon Investment Servicing (US) Inc., which has its principal place of business at 118 Flanders Road,","page_number":41,"box":{"x":102,"y":181,"width":764,"height":11}},{"id":"66c43f4a-81c7-4d9b-bb61-336d0d135c76","block_type":"box","text":"Westborough, MA 01581, serves as transfer agent and dividend disbursing agent for the Fund.","page_number":41,"box":{"x":68,"y":196,"width":677,"height":11}},{"id":"e6a6f341-13f8-4499-8015-40f51569275e","block_type":"box","text":"Credit Agreement","page_number":41,"box":{"x":69,"y":226,"width":129,"height":11}},{"id":"0f6c9e88-e64d-4c95-aa95-ea5d29f47904","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":41,"box":{"x":101,"y":249,"width":757,"height":11}},{"id":"d1ac0093-6802-4c3c-adae-ec566800eda1","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":41,"box":{"x":69,"y":263,"width":817,"height":12}},{"id":"ea3a978c-48c3-4d2f-be02-39de400b8d93","block_type":"box","text":"terminates on April 8, 2027, unless otherwise extended or renewed (the “Credit Agreement”). Excluding","page_number":41,"box":{"x":68,"y":279,"width":743,"height":11}},{"id":"03d1c5fb-8c37-44e1-9e39-1d48308cc7ad","block_type":"box","text":"commitments designated for cer tain Par ticipating Funds, the Par ticipating Funds, including the Fund, can borrow up","page_number":41,"box":{"x":69,"y":294,"width":825,"height":11}},{"id":"4b174ca6-d507-40d8-afec-747fbf7727df","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":41,"box":{"x":68,"y":309,"width":818,"height":11}},{"id":"589bb6bb-236d-458a-8315-a77a7bd42260","block_type":"box","text":"limitations as specified in the Credit Agreement. The Fund may borrow under the Credit Agreement to meet","page_number":41,"box":{"x":70,"y":324,"width":761,"height":12}},{"id":"42dda232-32b4-4244-9c59-4ae29416e05a","block_type":"box","text":"shareholder redemptions and for other lawful purposes. However, the Fund may not borrow under the Credit","page_number":41,"box":{"x":69,"y":339,"width":768,"height":12}},{"id":"00bc1efc-9ab3-4b88-8abb-cad599f33aa3","block_type":"box","text":"Agreement for leverage. The Fund may borrow up to the maximum amount allowable under its current Prospectuses","page_number":41,"box":{"x":68,"y":355,"width":825,"height":11}},{"id":"0449e802-f27b-4a0f-a214-5b2841eda20e","block_type":"box","text":"and SAI, subject to various other legal, regulatory or contractual limits. Borrowing results in interest expense and","page_number":41,"box":{"x":69,"y":370,"width":805,"height":11}},{"id":"4b280235-8d8a-41cd-beed-53c0e02142c5","block_type":"box","text":"other fees and expenses for the Fund which may impact the Fund’s net expenses. The costs of borrowing may reduce","page_number":41,"box":{"x":69,"y":385,"width":838,"height":11}},{"id":"0c6e4e54-d871-4aac-b4d3-68bad3ce592e","block_type":"box","text":"the Fund’s return. The Fund is charged its pro rata share of upfront fees and commitment fees on the aggregate","page_number":41,"box":{"x":68,"y":400,"width":801,"height":11}},{"id":"703d9c78-5ec6-4860-a812-73fed84f0a48","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":41,"box":{"x":69,"y":415,"width":833,"height":11}},{"id":"21e1db48-775d-435f-a23c-27181722c022","block_type":"box","text":"charged interest at a variable rate.","page_number":41,"box":{"x":69,"y":430,"width":245,"height":11}},{"id":"8352aeba-cae6-440f-93f4-08e88f801e55","block_type":"box","text":"V. Information on Sales Charges and Distribution Related Expenses","page_number":41,"box":{"x":68,"y":460,"width":491,"height":12}},{"id":"fa1c29b6-4c65-4687-a9c6-28dea6e92606","block_type":"box","text":"Set for th below is information on sales charges (including any contingent deferred sales charges (“CDSCs”))","page_number":41,"box":{"x":102,"y":483,"width":773,"height":11}},{"id":"c0c61a69-6746-4d17-9a20-deb4c5144d10","block_type":"box","text":"received by the Fund, including the amounts paid to affiliates of the Manager (“affiliates”) for the periods shown.","page_number":41,"box":{"x":69,"y":498,"width":804,"height":11}},{"id":"5124f441-c246-4b44-b3ae-1f10f8c631ea","block_type":"box","text":"BlackRock Investments, LLC (“BRIL” or the “Distributor”) acts as the Fund’s sole distributor.","page_number":41,"box":{"x":70,"y":513,"width":656,"height":11}},{"id":"1bec3f88-69d1-44ed-a8bd-42c390298838","block_type":"box","text":"Investor A 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.","page_number":41,"box":{"x":70,"y":631,"width":242,"height":11}},{"id":"e0b0f6f9-884b-442c-9c49-5726b580ac06","block_type":"box","text":".......................","page_number":41,"box":{"x":319,"y":638,"width":181,"height":1}},{"id":"254ae329-0674-4c3a-b23f-7d6dadd8807a","block_type":"box","text":"$333,961 $25,653 $25,653 $1,103","page_number":41,"box":{"x":531,"y":630,"width":362,"height":11}},{"id":"fcd241f5-5dcb-4186-b495-fb6b32db22ca","block_type":"box","text":"Fiscal Year Ended May 31, 2024 .","page_number":41,"box":{"x":70,"y":646,"width":242,"height":11}},{"id":"f3135754-10b4-4fa7-b2bb-b83e43f1fc02","block_type":"box","text":".......................","page_number":41,"box":{"x":319,"y":653,"width":181,"height":1}},{"id":"f0e89852-7efe-46da-a261-2535b0d66cd8","block_type":"box","text":"$147,119 $11,356 $11,356 $ 82","page_number":41,"box":{"x":531,"y":645,"width":362,"height":11}},{"id":"cbef68cc-b005-4561-b4fe-add9ba5e6cb4","block_type":"box","text":"Investor C 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.","page_number":41,"box":{"x":70,"y":749,"width":245,"height":11}},{"id":"01f0efd6-6fd9-4475-be7d-d6ef2c7c2044","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 802 $ 802","page_number":41,"box":{"x":322,"y":748,"width":576,"height":11}},{"id":"0e9da0ea-1a6d-46b2-8655-f371d9de31ec","block_type":"box","text":"The table below provides information for the fiscal year ended May 31, 2026 about the 12b-1 fees the Fund paid","page_number":41,"box":{"x":101,"y":773,"width":805,"height":11}},{"id":"88febae0-96eb-4b63-8a7b-bd31a5d27ef2","block_type":"box","text":"to BRIL under the Fund’s 12b-1 plan. A por tion of the fees collected by BRIL were paid to affiliates for providing","page_number":41,"box":{"x":68,"y":788,"width":796,"height":11}},{"id":"6b61efe5-307e-449a-a63a-a6791781da34","block_type":"box","text":"shareholder servicing activities for Investor A Shares and for providing shareholder servicing and distribution-related","page_number":41,"box":{"x":69,"y":803,"width":826,"height":11}},{"id":"0b12e414-4bef-4d4f-8a16-740ed99bb31a","block_type":"box","text":"activities and services for Investor C and Class R Shares.","page_number":41,"box":{"x":69,"y":818,"width":409,"height":9}},{"id":"981bc65b-f0f2-4aaa-bed4-92c435cdcb09","block_type":"box","text":"Class Name","page_number":41,"box":{"x":69,"y":857,"width":68,"height":7}},{"id":"97e38ede-1e0a-4e13-b068-fcb2648d998c","block_type":"box","text":"Fees Paid to BRIL","page_number":41,"box":{"x":806,"y":847,"width":103,"height":7}},{"id":"d7299703-6aeb-46f0-a5b3-4dcc136f05bd","block_type":"box","text":"Investor A Shares .","page_number":41,"box":{"x":70,"y":874,"width":134,"height":9}},{"id":"215fef61-9646-4071-9933-3afc10eb631c","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,","page_number":41,"box":{"x":210,"y":874,"width":626,"height":11}},{"id":"ecb9d063-fc7c-4147-832c-66f08e9b762e","block_type":"box","text":"698,230","page_number":41,"box":{"x":838,"y":874,"width":63,"height":11}},{"id":"4f896964-2c68-4eb2-812d-632e5a3532cd","block_type":"box","text":"Investor C Shares . . .","page_number":41,"box":{"x":70,"y":889,"width":150,"height":9}},{"id":"48642ff2-444d-4a92-a7c5-fde18f1bccea","block_type":"box","text":".................................................................... $","page_number":41,"box":{"x":226,"y":889,"width":596,"height":10}},{"id":"52ba4089-9d49-420e-bf80-8cf3bc72427d","block_type":"box","text":"341,424","page_number":41,"box":{"x":838,"y":889,"width":63,"height":11}},{"id":"37bcc422-5e25-43af-8beb-fdc74ab0187b","block_type":"box","text":"Class R Shares","page_number":41,"box":{"x":69,"y":905,"width":109,"height":8}},{"id":"addd1692-c1d5-444f-bb20-b0dc6641b29e","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 13,478","page_number":41,"box":{"x":185,"y":904,"width":716,"height":11}},{"id":"bd0aa324-d8cb-4b7b-9a85-442ad69db5a3","block_type":"box","text":"I-23","page_number":41,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"7e4980b9-5e78-4a75-a953-5c33a66dc879","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":41,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a38b8ac7-411d-4317-9c6a-895585fd26ef","block_type":"box","text":"VI. Computation of Offering Price Per Share","page_number":42,"box":{"x":68,"y":45,"width":318,"height":11}},{"id":"864750f6-4ec4-42bd-b142-b31a0ec97541","block_type":"box","text":"An illustration of the computation of the offering price of the Investor A Shares of the Fund based on the value of","page_number":42,"box":{"x":101,"y":67,"width":805,"height":12}},{"id":"ce0e2383-cd62-490c-9586-8372cc58497c","block_type":"box","text":"the Fund’s Investor A Shares’ net assets and the number of Investor A Shares outstanding on May 31, 2026, is set","page_number":42,"box":{"x":68,"y":82,"width":827,"height":12}},{"id":"73f90c4a-b396-40d1-8ece-cf06879c0f44","block_type":"box","text":"for th below.","page_number":42,"box":{"x":68,"y":98,"width":83,"height":9}},{"id":"d9d69762-8329-4dac-8fa3-e727410fe71a","block_type":"box","text":"Investor A Shares","page_number":42,"box":{"x":805,"y":126,"width":102,"height":7}},{"id":"5facf522-0fba-43db-a842-7ae1b5885cd3","block_type":"box","text":"Net Assets","page_number":42,"box":{"x":70,"y":144,"width":76,"height":9}},{"id":"476325f4-6f30-4600-b9ba-cb3ea68ff608","block_type":"box","text":".............................................................................","page_number":42,"box":{"x":150,"y":151,"width":621,"height":1}},{"id":"2f7d87bf-93a8-481b-ad1e-599b62c18fc2","block_type":"box","text":"$774,933,160","page_number":42,"box":{"x":803,"y":143,"width":106,"height":11}},{"id":"8a06a3f5-1946-466f-9de6-b9ee53e7f6e9","block_type":"box","text":"Number of Shares Outstanding . . .","page_number":42,"box":{"x":70,"y":159,"width":245,"height":11}},{"id":"c3de6f95-f01d-4373-8644-68bf5a4138e5","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,","page_number":42,"box":{"x":321,"y":159,"width":524,"height":10}},{"id":"1c74e661-c8ec-44f3-bf6b-5cf85b70e621","block_type":"box","text":"812,648","page_number":42,"box":{"x":847,"y":159,"width":62,"height":10}},{"id":"ddc72b4f-b161-4d19-98e8-4265790e09ba","block_type":"box","text":"Net Asset Value Per Share (net assets divided by number of shares outstanding)","page_number":42,"box":{"x":70,"y":174,"width":571,"height":11}},{"id":"78562199-f287-475e-bcdd-def87ec4dcdd","block_type":"box","text":"................","page_number":42,"box":{"x":647,"y":181,"width":124,"height":2}},{"id":"a1dd4be8-3f08-49d5-bbee-f9dfdc66b75c","block_type":"box","text":"$30.02","page_number":42,"box":{"x":857,"y":173,"width":52,"height":11}},{"id":"36667b48-fd75-4b05-9884-a3e82c0dfb0e","block_type":"box","text":"Sales Charge (5.25% of offering price; 5.54% of net asset value per share)","page_number":42,"box":{"x":69,"y":189,"width":534,"height":11}},{"id":"72a2485f-c5f0-40ca-aa1f-4cb8a3ade3d4","block_type":"box","text":"1","page_number":42,"box":{"x":604,"y":189,"width":4,"height":5}},{"id":"5881bd61-f161-47ad-a2dd-afc8950612d3","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . $1.66","page_number":42,"box":{"x":615,"y":188,"width":294,"height":11}},{"id":"123be785-0397-4266-832f-27a72d1f0aa6","block_type":"box","text":"Offering Price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":42,"box":{"x":69,"y":208,"width":702,"height":12}},{"id":"ba713a43-36b5-4ed4-96d1-7bc1c53cec47","block_type":"box","text":"$31.68","page_number":42,"box":{"x":857,"y":208,"width":52,"height":10}},{"id":"ea3798c8-42bd-40b2-b9d5-c3371948dacc","block_type":"box","text":"1","page_number":42,"box":{"x":69,"y":241,"width":3,"height":3}},{"id":"9e0bb55a-38da-4673-8cda-628701f67e30","block_type":"box","text":"Rounded to the nearest one-hundredth percent; assumes maximum sales charge is applicable.","page_number":42,"box":{"x":94,"y":241,"width":541,"height":8}},{"id":"a7551c68-60b4-4b26-bc86-c072cb8d2e85","block_type":"box","text":"The offering price for the Fund’s other share classes is equal to the share class’s net asset value computed as","page_number":42,"box":{"x":101,"y":261,"width":796,"height":12}},{"id":"16401209-cff5-4a8c-bbf1-b727aa9f6e98","block_type":"box","text":"set for th above for Investor A Shares. Though not subject to a sales charge, cer tain share classes may be subject to","page_number":42,"box":{"x":69,"y":276,"width":833,"height":12}},{"id":"195e368c-4c18-458b-b1a1-ddb0c7af50c3","block_type":"box","text":"a CDSC on redemption. For more information on the purchasing and valuation of shares, please see “Purchase of","page_number":42,"box":{"x":69,"y":292,"width":813,"height":11}},{"id":"7204248e-d136-43a3-b2ae-4b66107bc8ff","block_type":"box","text":"Shares” and “Pricing of Shares” in Par t II of this SAI.","page_number":42,"box":{"x":69,"y":307,"width":377,"height":11}},{"id":"7ee8085d-2fdb-40ad-ba2e-dbee3d9f2579","block_type":"box","text":"VII. Portfolio Transactions and Brokerage","page_number":42,"box":{"x":68,"y":337,"width":302,"height":11}},{"id":"5195bedf-a320-4ccb-b5c8-a989ca41e209","block_type":"box","text":"See “Por tfolio Transactions and Brokerage” in Par t II of this SAI for more information.","page_number":42,"box":{"x":102,"y":360,"width":609,"height":11}},{"id":"6ee8f300-96c5-434a-aa71-5458dcc71995","block_type":"box","text":"Information about the brokerage commissions paid by the Fund for the periods shown, including commissions","page_number":42,"box":{"x":102,"y":382,"width":782,"height":12}},{"id":"0a022f5f-0a19-4ef9-abf1-f49126f32583","block_type":"box","text":"paid to affiliates, is set for th in the following table:","page_number":42,"box":{"x":70,"y":397,"width":360,"height":12}},{"id":"6ae556e7-3f1d-406c-aa0f-8d2bc966cb48","block_type":"box","text":"Aggregate Brokerage","page_number":42,"box":{"x":613,"y":426,"width":125,"height":9}},{"id":"192ab66c-5700-43d5-afd5-b99ed4c81e54","block_type":"box","text":"Commissions Paid","page_number":42,"box":{"x":623,"y":436,"width":106,"height":7}},{"id":"6afb61f2-c56e-41cf-87a5-4050d4ef0e8b","block_type":"box","text":"Brokerage Commissions","page_number":42,"box":{"x":769,"y":426,"width":140,"height":9}},{"id":"0d3725f9-f832-46de-b4e7-af96309cb32a","block_type":"box","text":"Paid to Affiliates","page_number":42,"box":{"x":791,"y":436,"width":96,"height":7}},{"id":"c433d8ee-7a56-44b2-8f8c-02f2ac30f5a9","block_type":"box","text":"Fiscal Year Ended May 31, 2026. . . . . . . .","page_number":42,"box":{"x":70,"y":454,"width":292,"height":11}},{"id":"d2719e9c-da59-4e23-a8bb-96ab3535f33e","block_type":"box","text":"...........................","page_number":42,"box":{"x":369,"y":461,"width":213,"height":1}},{"id":"c77559f9-d17f-4fa2-a103-59c5be0a1e56","block_type":"box","text":"$102,509 $0","page_number":42,"box":{"x":640,"y":453,"width":208,"height":11}},{"id":"7401ca20-572a-4292-b786-6b4360b22fb9","block_type":"box","text":"Fiscal Year Ended May 31, 2025. . . . . . . .","page_number":42,"box":{"x":70,"y":469,"width":292,"height":11}},{"id":"a628b33a-8332-4b0a-b263-a0f0a0b0259e","block_type":"box","text":"...........................","page_number":42,"box":{"x":369,"y":476,"width":213,"height":1}},{"id":"77ab9729-f244-415b-a4a7-1c71a54c2f29","block_type":"box","text":"$154,173 $0","page_number":42,"box":{"x":640,"y":468,"width":208,"height":11}},{"id":"5f34d3df-2517-4212-8ada-89f44a72712e","block_type":"box","text":"Fiscal Year Ended May 31, 2024. . . . . . . .","page_number":42,"box":{"x":70,"y":484,"width":292,"height":11}},{"id":"89ba8a7b-c567-4144-bccc-c2da01a24b68","block_type":"box","text":"...........................","page_number":42,"box":{"x":369,"y":491,"width":213,"height":2}},{"id":"23d8f71b-31ff-4a6d-8fba-7f74232201a3","block_type":"box","text":"$197,637 $0","page_number":42,"box":{"x":640,"y":483,"width":208,"height":11}},{"id":"e8bd5b07-1176-43a2-ad5d-d07c788c163a","block_type":"box","text":"The following table shows the dollar amount of brokerage commissions paid to brokers for providing Section","page_number":42,"box":{"x":101,"y":508,"width":770,"height":11}},{"id":"b98314b9-fa49-4917-af6e-c6b48aa4a016","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":42,"box":{"x":69,"y":523,"width":814,"height":11}},{"id":"bab7a1d4-fdfe-4c90-8c53-cd45e2c604dd","block_type":"box","text":"the approximate dollar amount of the transactions involved for the fiscal year ended May 31, 2026. The provision of","page_number":42,"box":{"x":68,"y":538,"width":829,"height":11}},{"id":"0b46e62c-e68a-419a-bea7-bed5617d1e77","block_type":"box","text":"Section 28(e) research/brokerage services was not necessarily a factor in the placement of all brokerage business","page_number":42,"box":{"x":69,"y":553,"width":822,"height":11}},{"id":"3db38015-d856-4d11-993a-83017c47ed60","block_type":"box","text":"with such brokers.","page_number":42,"box":{"x":68,"y":568,"width":130,"height":9}},{"id":"d98fe938-aca7-4e0c-8ec9-c0b7c19ef0f3","block_type":"box","text":"Amount of Commissions","page_number":42,"box":{"x":355,"y":596,"width":141,"height":8}},{"id":"e3c64712-a0c1-4245-84d1-ff54080a5992","block_type":"box","text":"Paid to Brokers for","page_number":42,"box":{"x":371,"y":606,"width":110,"height":8}},{"id":"9cc06f1d-5ecc-4204-86d3-8ba856586d08","block_type":"box","text":"Providing 28(e) Eligible","page_number":42,"box":{"x":358,"y":617,"width":136,"height":8}},{"id":"be995b9e-b9e2-452a-9217-9b8f507948c2","block_type":"box","text":"Research Services","page_number":42,"box":{"x":372,"y":627,"width":108,"height":7}},{"id":"01e61eec-70ec-4f8c-93f3-88b70dfb4b5a","block_type":"box","text":"Amount of Brokerage","page_number":42,"box":{"x":588,"y":617,"width":124,"height":8}},{"id":"2578494f-6d72-4e37-98d1-ed1c5b350fd8","block_type":"box","text":"Transactions Involved","page_number":42,"box":{"x":587,"y":627,"width":126,"height":7}},{"id":"f7573605-0d62-4e84-8f0e-1a16c72a5544","block_type":"box","text":"$36,802 $400,547,977","page_number":42,"box":{"x":395,"y":644,"width":308,"height":11}},{"id":"7355df37-6876-4b55-9fd8-f6e34cb0b049","block_type":"box","text":"The value of the Fund’s aggregate holdings of the securities of its regular brokers or dealers (as defined in Rule","page_number":42,"box":{"x":101,"y":668,"width":796,"height":12}},{"id":"157d63f3-4a41-4f52-bb67-c7ae53fcf8df","block_type":"box","text":"10b-1 under the Investment Company Act) or their parents as of May 31, 2026 if any por tion of such holdings were","page_number":42,"box":{"x":70,"y":683,"width":821,"height":12}},{"id":"a230c185-427e-41f7-b049-2a3cc8cc4ae1","block_type":"box","text":"purchased during the fiscal year ended May 31, 2026, is as follows:","page_number":42,"box":{"x":70,"y":698,"width":485,"height":12}},{"id":"55d8cb7c-2326-4929-a3ba-3feec590424a","block_type":"box","text":"Regular Broker/Dealer Debt (D)/Equity (E) Aggregate Holdings (000’s)","page_number":42,"box":{"x":69,"y":727,"width":840,"height":9}},{"id":"34072bc2-f30b-467e-b858-d81829fa6985","block_type":"box","text":"Morgan Stanley & Co. LLC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . E $9,063","page_number":42,"box":{"x":70,"y":744,"width":784,"height":12}},{"id":"52b2dd20-c9bb-42d7-b79f-e77b8cc433c7","block_type":"box","text":"BofA Securities, Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . E $5,099","page_number":42,"box":{"x":70,"y":759,"width":784,"height":11}},{"id":"04606f89-bb49-4a07-a9ec-53acc656fdc7","block_type":"box","text":"CitiGroup Global Markets Inc. . . . . . . . . .","page_number":42,"box":{"x":69,"y":775,"width":282,"height":11}},{"id":"d1a863cb-e437-40ad-9047-c1842c5a32cd","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . E $2,189","page_number":42,"box":{"x":357,"y":774,"width":497,"height":11}},{"id":"2d5ecd6b-fbbb-4afc-9e74-338a16d4053e","block_type":"box","text":"Goldman Sachs & Co. LLC .","page_number":42,"box":{"x":69,"y":790,"width":192,"height":9}},{"id":"576b9abe-00a9-45d9-bfae-b35e6f443824","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . E $1,376","page_number":42,"box":{"x":268,"y":789,"width":586,"height":11}},{"id":"948eb10e-032c-442a-a708-7cee13c64ac6","block_type":"box","text":"J.P. Morgan Securities LLC . .","page_number":42,"box":{"x":69,"y":805,"width":209,"height":11}},{"id":"2dacae9b-2637-4108-8405-b02dcecf5ca4","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . E $ 377","page_number":42,"box":{"x":284,"y":804,"width":570,"height":11}},{"id":"26a7fb1f-240d-4059-b573-defbbbe51f59","block_type":"box","text":"Securities Lending","page_number":42,"box":{"x":68,"y":837,"width":135,"height":11}},{"id":"c97f65da-4d33-46fc-ad04-1db5d220665b","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":42,"box":{"x":101,"y":859,"width":807,"height":11}},{"id":"313ed946-0e92-4017-827d-c011d587e6d3","block_type":"box","text":"exemptive order from the Commission permitting it to lend por tfolio securities to borrowers affiliated with the Fund","page_number":42,"box":{"x":69,"y":874,"width":817,"height":12}},{"id":"ce588775-c28d-4b44-8130-2f9eccf6e1e0","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":42,"box":{"x":69,"y":889,"width":813,"height":12}},{"id":"aba30980-946f-4bb1-afcb-88da2ba7ddfb","block_type":"box","text":"lending, BlackRock Investment Management, LLC (“BIM”) acts as securities lending agent for the Fund, subject to the","page_number":42,"box":{"x":70,"y":904,"width":838,"height":12}},{"id":"1842c660-2e34-4831-869e-f55f7ca0c612","block_type":"box","text":"I-24","page_number":42,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"087abeae-5380-4409-9abc-527834248005","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":42,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8e7c36cb-a2a9-4c6b-a484-78b8dbbfb59c","block_type":"box","text":"overall supervision of the Manager, pursuant to a written agreement (the “Securities Lending Agency Agreement”).","page_number":43,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"7b1b6b56-907c-435c-aeaf-06fe76c8c2df","block_type":"box","text":"BIM administers the lending program in accordance with guidelines approved by the Board.","page_number":43,"box":{"x":70,"y":60,"width":646,"height":11}},{"id":"d5df3df3-21f6-4b55-8844-b2ebdf10c06a","block_type":"box","text":"The Fund retains a por tion of the securities lending income and remits the remaining por tion to BIM as","page_number":43,"box":{"x":101,"y":82,"width":735,"height":12}},{"id":"0f99192f-a4a9-4ce1-947d-c4a2046ce283","block_type":"box","text":"compensation for its services as securities lending agent. Securities lending income is generally equal to the total of","page_number":43,"box":{"x":69,"y":98,"width":834,"height":11}},{"id":"dc0701f9-4df3-4625-8471-1e3c3dcf10c7","block_type":"box","text":"income earned from the reinvestment of cash collateral (and excludes collateral investment fees as defined below),","page_number":43,"box":{"x":70,"y":113,"width":822,"height":11}},{"id":"ea70004e-6096-4b29-9170-6b176c1a37fd","block_type":"box","text":"and any fees or other payments to and from borrowers of securities. As securities lending agent, BIM bears all","page_number":43,"box":{"x":69,"y":128,"width":787,"height":11}},{"id":"9723cd1e-ab35-4bbc-b205-ec3a8eb41d04","block_type":"box","text":"operational costs directly related to securities lending. The Fund is responsible for fees in connection with the","page_number":43,"box":{"x":69,"y":143,"width":783,"height":11}},{"id":"9692b0f5-1fd4-45dd-b5c9-b1730ede6aa2","block_type":"box","text":"investment of cash collateral received for securities on loan in a money market fund managed by the Manager (the","page_number":43,"box":{"x":70,"y":158,"width":816,"height":11}},{"id":"88e99915-0d27-4463-8880-81fbfa3ed467","block_type":"box","text":"“collateral investment fees”); however, the securities lending agent has agreed to reduce the amount of securities","page_number":43,"box":{"x":70,"y":173,"width":813,"height":11}},{"id":"aad8f86c-9d05-4cd4-888b-86b1f30d49fd","block_type":"box","text":"lending income it receives in order to effectively limit the collateral investment fees the Fund bears to an annual rate","page_number":43,"box":{"x":70,"y":188,"width":830,"height":12}},{"id":"4ad4b22a-04bd-4b5f-8038-95591b42f11b","block_type":"box","text":"of 0.04%. Such money market fund shares will not be subject to a sales load, distribution fee or service fee.","page_number":43,"box":{"x":69,"y":203,"width":773,"height":12}},{"id":"c2c833fe-8b12-4127-b1e4-e077bd9badaf","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":43,"box":{"x":101,"y":227,"width":776,"height":12}},{"id":"6bf3855d-7244-431d-8630-f09c6f559811","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":43,"box":{"x":69,"y":242,"width":831,"height":12}},{"id":"204dbde3-8324-4e17-8ed9-49127cb6a52b","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":43,"box":{"x":68,"y":258,"width":812,"height":11}},{"id":"23d08881-6e3b-44f5-a2d9-0ebe47a37427","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":43,"box":{"x":69,"y":273,"width":799,"height":11}},{"id":"60c200a9-de6a-4059-91d7-a01079780678","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":43,"box":{"x":68,"y":288,"width":835,"height":11}},{"id":"7f538433-ff78-4775-8794-464867273af9","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":43,"box":{"x":69,"y":303,"width":818,"height":11}},{"id":"a3bf514c-9528-4425-9666-ff1bab15e848","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":43,"box":{"x":68,"y":318,"width":789,"height":11}},{"id":"f866a113-7070-441b-86e3-3b1e46be9b60","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":43,"box":{"x":69,"y":333,"width":829,"height":11}},{"id":"0e0e8e94-44ec-4359-98b0-1f2843be0295","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":43,"box":{"x":69,"y":348,"width":839,"height":11}},{"id":"6db3ef43-3af0-4e03-81d1-442470f6abe6","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":43,"box":{"x":69,"y":363,"width":802,"height":12}},{"id":"45245e3d-8e38-402d-8f86-dcfcacf143c4","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":43,"box":{"x":70,"y":378,"width":830,"height":12}},{"id":"2a55e39d-19f0-4a84-bf0a-91de0d73019c","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":43,"box":{"x":69,"y":394,"width":838,"height":11}},{"id":"952dc2f5-abef-43ea-bbb3-0080e77fb9af","block_type":"box","text":"Fund’s returns on securities lending.","page_number":43,"box":{"x":70,"y":409,"width":258,"height":11}},{"id":"5eec1283-1b4e-45e0-95e5-1c5080474105","block_type":"box","text":"Under the securities lending program, the Fund is categorized into one of several specific asset classes. The","page_number":43,"box":{"x":102,"y":431,"width":774,"height":12}},{"id":"9246d05d-882b-4f6e-9548-7fa139245cf8","block_type":"box","text":"determination of the Fund’s asset class category (fixed-income, domestic equity, international equity, or fund of","page_number":43,"box":{"x":69,"y":446,"width":794,"height":12}},{"id":"90b813a6-f05e-421a-b71e-b9e742f256b4","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":43,"box":{"x":68,"y":462,"width":809,"height":11}},{"id":"d010a624-fc4e-426b-9527-c4627d8edeee","block_type":"box","text":"Trust and BIM.","page_number":43,"box":{"x":68,"y":477,"width":103,"height":9}},{"id":"76c5189c-310a-4a0a-aee8-748d8a5c3d8b","block_type":"box","text":"Pursuant to the securities lending agreement effective January 1, 2026: (i) the Fund retains 81% of securities","page_number":43,"box":{"x":102,"y":499,"width":783,"height":12}},{"id":"bc07cd0d-c1c4-41aa-8ef5-55d3a4fb4183","block_type":"box","text":"lending income (which excludes collateral investment fees); and (ii) this amount can never be less than 70% of the","page_number":43,"box":{"x":70,"y":515,"width":815,"height":11}},{"id":"efc92c71-b1cf-42a5-abf9-9dcb1691e4fe","block_type":"box","text":"sum of securities lending income plus collateral investment fees.","page_number":43,"box":{"x":69,"y":530,"width":463,"height":11}},{"id":"38597436-7487-4db7-a3e9-45a2332dcb33","block_type":"box","text":"In addition, commencing the business day following the date that the aggregate securities lending income","page_number":43,"box":{"x":102,"y":552,"width":753,"height":12}},{"id":"a706e7b0-942e-4202-a11c-e988fee87541","block_type":"box","text":"earned across the BlackRock Multi-Asset Complex in a calendar year exceeds specified thresholds, the Fund,","page_number":43,"box":{"x":69,"y":567,"width":778,"height":12}},{"id":"6aec9376-1182-4dd6-8178-635b4f20090a","block_type":"box","text":"pursuant to the current securities lending agreement, will receive for the remainder of that calendar year securities","page_number":43,"box":{"x":70,"y":583,"width":817,"height":11}},{"id":"bd10de5f-f26d-4d3b-9067-55abae586c71","block_type":"box","text":"lending income as follows: (i) 84% of securities lending income (which excludes collateral investment fees); and","page_number":43,"box":{"x":70,"y":598,"width":794,"height":11}},{"id":"6bb1c1fe-abe4-4339-8182-b4c5e458c864","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":43,"box":{"x":69,"y":613,"width":825,"height":11}},{"id":"8ad5304b-67df-4428-8e60-a760111fd95e","block_type":"box","text":"Prior to January 1, 2026, the Fund was subject to the same securities lending fee arrangement.","page_number":43,"box":{"x":102,"y":635,"width":683,"height":12}},{"id":"2e7f0734-4a88-4a9a-bb76-e6ac24953921","block_type":"box","text":"The services provided to the Fund by BIM, in the most recent fiscal year ended May 31, 2026, primarily included","page_number":43,"box":{"x":101,"y":658,"width":803,"height":11}},{"id":"e9895a16-9f7b-40cc-a8ef-38d47b597cbe","block_type":"box","text":"the following:","page_number":43,"box":{"x":68,"y":673,"width":93,"height":12}},{"id":"ff7489c8-ea19-4fef-bd32-c17f70f5570b","block_type":"box","text":"(1) selecting borrowers from an approved list of borrowers and executing a securities lending agreement as agent","page_number":43,"box":{"x":69,"y":693,"width":818,"height":12}},{"id":"43757785-f47f-4fe3-84c2-d585bf924094","block_type":"box","text":"on behalf of the Fund with each such borrower;","page_number":43,"box":{"x":102,"y":709,"width":333,"height":10}},{"id":"8902ae10-16d5-4e1c-a101-ffa8ab590911","block_type":"box","text":"(2) negotiating the terms of securities loans, including the amount of fees;","page_number":43,"box":{"x":69,"y":729,"width":538,"height":11}},{"id":"502c1fa2-d7c7-463d-9405-11558bd12692","block_type":"box","text":"(3) directing the delivery of loaned securities;","page_number":43,"box":{"x":69,"y":749,"width":330,"height":11}},{"id":"1e9afd15-386d-4f11-a693-51f4d5137b48","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":43,"box":{"x":69,"y":769,"width":834,"height":11}},{"id":"7e253f77-2d92-444c-9942-f99518927441","block_type":"box","text":"of excess collateral, as necessary;","page_number":43,"box":{"x":102,"y":784,"width":246,"height":11}},{"id":"59303dfb-2f39-45c6-a3a2-048f6c03c98f","block_type":"box","text":"(5) investing cash collateral received in connection with any loaned securities;","page_number":43,"box":{"x":69,"y":805,"width":562,"height":11}},{"id":"60f630d4-7e4f-4b89-aa54-532182cd6dda","block_type":"box","text":"(6) monitoring distributions on loaned securities (for example, interest and dividend activity);","page_number":43,"box":{"x":69,"y":824,"width":665,"height":12}},{"id":"4f7accec-5149-401b-8459-81764d5fb992","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":43,"box":{"x":69,"y":845,"width":822,"height":11}},{"id":"290068d7-8005-40ca-a71e-a0bbc6d06788","block_type":"box","text":"the liquidation of collateral to purchase replacement securities of the same issue, type, class and series as that","page_number":43,"box":{"x":101,"y":860,"width":803,"height":11}},{"id":"a7b08bad-9be0-4ea5-a57b-aef9009b1a65","block_type":"box","text":"of the loaned securities; and","page_number":43,"box":{"x":102,"y":875,"width":203,"height":10}},{"id":"a9a3d0c3-6835-45c4-8d05-8e0f952d7c79","block_type":"box","text":"(8) terminating securities loans and arranging for the return of loaned securities to the Fund at loan termination.","page_number":43,"box":{"x":69,"y":895,"width":808,"height":11}},{"id":"bad4f062-f689-4100-bf9e-5b1db74e53d8","block_type":"box","text":"I-25","page_number":43,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"1b403e0b-f5e5-4335-8658-38cff374dc90","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":43,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"646455aa-68ca-4ce3-9081-2388e2361645","block_type":"box","text":"The following table shows the dollar amounts of income and fees/compensation related to the securities lending","page_number":44,"box":{"x":101,"y":45,"width":805,"height":11}},{"id":"4fa287ac-66e6-443e-a7f8-8c6ec95f31e4","block_type":"box","text":"activities of the Fund during the most recent fiscal year ended May 31, 2026.","page_number":44,"box":{"x":69,"y":60,"width":552,"height":11}},{"id":"efe22292-6272-4a45-98d7-52eca0972fd7","block_type":"box","text":"Gross income from securities lending activities","page_number":44,"box":{"x":69,"y":88,"width":343,"height":11}},{"id":"5dc2ff75-09d0-4ecb-9346-de43c45215d5","block_type":"box","text":"....................................................","page_number":44,"box":{"x":417,"y":95,"width":418,"height":1}},{"id":"6ab26a92-90f8-47e0-b16e-c0a26483901b","block_type":"box","text":"$6,211","page_number":44,"box":{"x":856,"y":87,"width":53,"height":11}},{"id":"8b57ec9e-1f97-4f41-9327-23c2ed462a3a","block_type":"box","text":"Fees and/or compensation for securities lending activities and related services","page_number":44,"box":{"x":70,"y":107,"width":565,"height":11}},{"id":"763892d1-49a6-45c0-b366-698873f9d99c","block_type":"box","text":"Securities lending income paid to BIM for services as securities lending agent","page_number":44,"box":{"x":79,"y":122,"width":555,"height":11}},{"id":"17f6c593-40ee-4733-b0fd-75be90feb0eb","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . $ 982","page_number":44,"box":{"x":646,"y":121,"width":263,"height":11}},{"id":"3d5da58e-475a-4f63-80da-74d6a8fa0429","block_type":"box","text":"Cash collateral management expenses not included in securities lending income paid to BIM . . .","page_number":44,"box":{"x":79,"y":137,"width":683,"height":12}},{"id":"2acac96c-0347-4e3b-9b33-2dad282c6ef8","block_type":"box","text":". . . . . . . . . $ 31","page_number":44,"box":{"x":768,"y":137,"width":141,"height":10}},{"id":"5be13682-3f6c-4340-b89a-0a045ea95274","block_type":"box","text":"Administrative fees not included in securities lending income paid to BIM","page_number":44,"box":{"x":78,"y":152,"width":519,"height":12}},{"id":"632fc26d-48cb-4645-bd95-8925115f97d2","block_type":"box","text":"............................. $ 0","page_number":44,"box":{"x":605,"y":152,"width":304,"height":10}},{"id":"fa2efd79-d954-4bd4-aa41-4ea0d4bba85f","block_type":"box","text":"Indemnification fees not included in securities lending income paid to BIM","page_number":44,"box":{"x":79,"y":167,"width":526,"height":12}},{"id":"0cb707ff-2b3d-4f0f-a73e-6b28eca7f8d8","block_type":"box","text":"............................ $ 0","page_number":44,"box":{"x":613,"y":167,"width":296,"height":10}},{"id":"e03c61d3-e8e1-4f4a-b79d-8c0c5b3c7916","block_type":"box","text":"Rebates (paid to borrowers).","page_number":44,"box":{"x":79,"y":183,"width":201,"height":11}},{"id":"7ff54b87-c6e6-441b-a9d7-3420056d97e8","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $5,198","page_number":44,"box":{"x":287,"y":182,"width":622,"height":11}},{"id":"be905874-2f49-47aa-b211-473b5f717068","block_type":"box","text":"Other fees not included in securities lending income paid to BIM . . . . . . . .","page_number":44,"box":{"x":79,"y":198,"width":519,"height":11}},{"id":"bee2f744-87a5-406f-8540-a9b3c27e33c6","block_type":"box","text":"............................. $ 0","page_number":44,"box":{"x":605,"y":197,"width":304,"height":11}},{"id":"8e7919b0-e670-4254-a845-17fb368a9b9c","block_type":"box","text":"Aggregate fees/compensation for securities lending activities","page_number":44,"box":{"x":68,"y":213,"width":455,"height":11}},{"id":"98e02306-99d6-4e01-81e5-e1a823a70165","block_type":"box","text":"......................................","page_number":44,"box":{"x":531,"y":220,"width":304,"height":2}},{"id":"08ddc164-ca80-4e84-9868-0c2c742b94ef","block_type":"box","text":"$6,211","page_number":44,"box":{"x":856,"y":212,"width":53,"height":12}},{"id":"64a77dd8-5ddd-4121-9ee7-63df03d22cc1","block_type":"box","text":"Net income from securities lending activities","page_number":44,"box":{"x":69,"y":232,"width":327,"height":11}},{"id":"d9892915-9646-451e-b598-9575a38f990d","block_type":"box","text":"......................................................","page_number":44,"box":{"x":401,"y":240,"width":434,"height":1}},{"id":"2fc912cc-94cd-4bb5-aa5b-8005dea1573e","block_type":"box","text":"$0","page_number":44,"box":{"x":856,"y":232,"width":53,"height":10}},{"id":"5257c6ab-e27c-42ff-8c0e-31a52b3ab1f7","block_type":"box","text":"VIII. Additional Information","page_number":44,"box":{"x":68,"y":268,"width":195,"height":9}},{"id":"afbec1fc-5e3b-4e4d-a616-0385c9631923","block_type":"box","text":"The Trust","page_number":44,"box":{"x":68,"y":299,"width":69,"height":8}},{"id":"b47617d2-cb91-40fc-99b2-285e7f6bb289","block_type":"box","text":"The Trust was organized as a Massachusetts business trust on December 22, 1988, and is registered under the","page_number":44,"box":{"x":101,"y":321,"width":807,"height":11}},{"id":"fedea2ed-1671-4b16-88e8-e8522e038c9d","block_type":"box","text":"Investment Company Act as an open-end, management investment company. The Fund is diversified. Effective","page_number":44,"box":{"x":70,"y":336,"width":783,"height":12}},{"id":"3fcac273-bc93-437c-928e-64db51a78c26","block_type":"box","text":"January 31, 1998, the Trust changed its name from Compass Capital Funds","page_number":44,"box":{"x":69,"y":351,"width":544,"height":12}},{"id":"a21536ba-d634-49f7-ab1e-4b56b99172bb","block_type":"box","text":"SM","page_number":44,"box":{"x":614,"y":352,"width":11,"height":4}},{"id":"bf449d88-cef5-4aed-9f5c-d43dff0105ff","block_type":"box","text":"to BlackRock Funds","page_number":44,"box":{"x":630,"y":352,"width":140,"height":8}},{"id":"b5c20478-4cec-4a8e-b133-2a77ad0c7898","block_type":"box","text":"SM","page_number":44,"box":{"x":771,"y":352,"width":10,"height":4}},{"id":"797481cb-3f28-4190-b2c4-941ae9faa491","block_type":"box","text":". The Trust is","page_number":44,"box":{"x":784,"y":352,"width":91,"height":8}},{"id":"1f01e70a-4096-434c-9b1f-88e5bed4be4c","block_type":"box","text":"authorized to issue an unlimited number of shares of beneficial interest with a par value of $0.001 per share, which","page_number":44,"box":{"x":69,"y":366,"width":827,"height":11}},{"id":"1fb1d52e-aa76-4a1f-9246-9737a0bd5828","block_type":"box","text":"may be divided into different series and classes. Effective on December 27, 2017, all of the issued and outstanding","page_number":44,"box":{"x":69,"y":382,"width":832,"height":11}},{"id":"fe377797-bef7-4d7b-b67e-39c086fc60d2","block_type":"box","text":"Investor B Shares of the Fund were conver ted into Investor A Shares of the Fund. Effective on July 6, 2021, all of the","page_number":44,"box":{"x":70,"y":397,"width":834,"height":11}},{"id":"2081b8f6-2a77-43d9-9a78-ce729438a4d2","block_type":"box","text":"issued and outstanding Service Shares of the Fund were conver ted into Investor A Shares of the Fund.","page_number":44,"box":{"x":70,"y":412,"width":730,"height":11}},{"id":"2e4c977b-edb9-48b2-b986-fdaaf09c7aff","block_type":"box","text":"Under Massachusetts law, shareholders of a business trust may, under cer tain circumstances, be held","page_number":44,"box":{"x":102,"y":435,"width":734,"height":11}},{"id":"effb318d-5424-44b1-9317-628c50e79ee1","block_type":"box","text":"personally liable as par tners for the obligations of the Trust. However, the Trust’s Declaration of Trust provides that","page_number":44,"box":{"x":70,"y":450,"width":822,"height":11}},{"id":"47d771a2-78d5-4ea5-a94f-13acc689473f","block_type":"box","text":"shareholders shall not be subject to any personal liability in connection with the assets of the Trust for the acts or","page_number":44,"box":{"x":69,"y":465,"width":814,"height":11}},{"id":"8bf4e694-6e2e-46c6-a0f5-bc24e3068de8","block_type":"box","text":"obligations of the Trust, and that every note, bond, contract, order or other under taking made by the Trust shall","page_number":44,"box":{"x":69,"y":480,"width":794,"height":11}},{"id":"b13e4304-8fd6-423b-80c5-80c42700b776","block_type":"box","text":"contain a provision to the effect that the shareholders are not personally liable thereunder. The Declaration of Trust","page_number":44,"box":{"x":69,"y":495,"width":824,"height":11}},{"id":"1a72d67a-cfe6-4f45-a2b4-f4e9a9b8b1c8","block_type":"box","text":"provides for indemnification out of Trust proper ty of any shareholder held personally liable solely by reason of his","page_number":44,"box":{"x":70,"y":510,"width":804,"height":11}},{"id":"10e8db6f-6fb7-4677-86d1-c29301a98225","block_type":"box","text":"being or having been a shareholder and not because of such shareholder’s acts or omissions or some other reason.","page_number":44,"box":{"x":69,"y":525,"width":830,"height":12}},{"id":"ec48fd39-707a-4cc9-a186-5042326132c6","block_type":"box","text":"The Declaration of Trust also provides that the Trust shall, upon request, assume the defense of any claim made","page_number":44,"box":{"x":68,"y":540,"width":807,"height":12}},{"id":"65bde719-b46c-435e-8440-eae0ab4c6894","block_type":"box","text":"against any shareholder for any act or obligation of the Trust, and shall 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Additional copies of the Fund’s annual and semi-annual repor ts to","page_number":46,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"d6a52af4-e155-4951-a0f4-76e0feecff05","block_type":"box","text":"shareholders and the Fund’s Annual and Semi-Annual Financial Statements and Additional Information may be","page_number":46,"box":{"x":69,"y":105,"width":785,"height":11}},{"id":"250deac0-3206-47c7-ace4-a2314dae2459","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":46,"box":{"x":69,"y":120,"width":836,"height":12}},{"id":"8bc387a4-973e-45aa-bccf-88b5e653159d","block_type":"box","text":"I-28","page_number":46,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"8731ff42-9802-4673-a2f0-9b0072755e3b","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":46,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c97c6717-ca05-4a6b-9bc0-a09be643dc9e","block_type":"box","text":"PART II","page_number":47,"box":{"x":463,"y":45,"width":52,"height":9}},{"id":"deb01cdd-a11a-4b30-a5b5-09a598eea4cc","block_type":"box","text":"Throughout this Statement of Additional Information (“SAI”), each BlackRock-advised fund may be referred to as","page_number":47,"box":{"x":101,"y":67,"width":799,"height":12}},{"id":"f8c5a12f-c10d-47f5-a45d-c308e3ec2450","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":47,"box":{"x":69,"y":82,"width":813,"height":12}},{"id":"c3377f02-786c-4149-b567-ef8e55ea2377","block_type":"box","text":"they invest cer tain of their assets in municipal investments described below.","page_number":47,"box":{"x":68,"y":98,"width":546,"height":11}},{"id":"5397c5a3-36ab-468b-8bfa-4c3c1a6c0490","block_type":"box","text":"Each Fund is organized either as a Maryland corporation, a Massachusetts business trust or a Delaware","page_number":47,"box":{"x":102,"y":120,"width":745,"height":12}},{"id":"d96ae63e-4233-4f9b-8cb8-b5b65aba5df4","block_type":"box","text":"statutory trust. In each jurisdiction, nomenclature varies. For ease and clarity of presentation, shares of common","page_number":47,"box":{"x":69,"y":135,"width":805,"height":11}},{"id":"e6ee984d-8778-4689-ab38-b44caee659bc","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":47,"box":{"x":69,"y":150,"width":824,"height":11}},{"id":"b369e55d-10e0-414f-a5c8-eedbd6108d95","block_type":"box","text":"Common Stock are referred to as “shareholders,” the trustees or directors of each Fund are referred to as","page_number":47,"box":{"x":69,"y":166,"width":761,"height":10}},{"id":"f9d94ec9-b968-452a-a472-ec74548241ec","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":47,"box":{"x":70,"y":181,"width":835,"height":11}},{"id":"c82424f1-42be-4b4a-863c-475cdeedc175","block_type":"box","text":"BlackRock Advisors, LLC, BlackRock Fund Advisors or their respective affiliates is the investment adviser or manager","page_number":47,"box":{"x":70,"y":196,"width":832,"height":11}},{"id":"954b1c6b-0fa3-4858-a557-c27ee007895e","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":47,"box":{"x":69,"y":211,"width":826,"height":11}},{"id":"f6eb5c07-f407-4205-9b45-0966dd15adbf","block_type":"box","text":"management agreement applicable to each Fund is referred to as the “Management Agreement.” Each Fund’s","page_number":47,"box":{"x":69,"y":226,"width":786,"height":11}},{"id":"d2fde0af-dbf2-40e7-a2ea-951917510f12","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":47,"box":{"x":68,"y":241,"width":834,"height":11}},{"id":"9d74627d-5615-4a7d-8b89-f6f6c32c5564","block_type":"box","text":"The Investment Company Act of 1940, as amended, is referred to herein as the “Investment Company Act.” The","page_number":47,"box":{"x":68,"y":256,"width":801,"height":11}},{"id":"cd15844e-d7b3-48e3-a9da-ace843879a04","block_type":"box","text":"Securities Act of 1933, as amended, is referred to herein as the “Securities Act.” The Securities and Exchange","page_number":47,"box":{"x":69,"y":271,"width":793,"height":12}},{"id":"adf74a98-1c3e-422f-a166-b71f1fb63b7f","block_type":"box","text":"Commission is referred to herein as the “Commission” or the “SEC.”","page_number":47,"box":{"x":69,"y":286,"width":492,"height":10}},{"id":"0232e1f0-7f77-4d1b-96b9-4693f0aef49d","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":47,"box":{"x":102,"y":309,"width":741,"height":11}},{"id":"e91f67be-245b-43a2-8860-9e5477c721f0","block_type":"box","text":"corresponding “master” por tfolio (each, a “Master Por tfolio”) of a master limited liability company (each, a “Master","page_number":47,"box":{"x":69,"y":324,"width":824,"height":12}},{"id":"89990e6f-3ad1-4b37-bf76-e6f7eb57c7d2","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":47,"box":{"x":70,"y":339,"width":814,"height":12}},{"id":"192ec90d-d3ed-41d9-8945-6c47f8e84955","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":47,"box":{"x":69,"y":355,"width":825,"height":11}},{"id":"f59a15ac-59c0-4922-b48c-6cd44b352062","block_type":"box","text":"Fund’s investment results will correspond directly to the investment results of the underlying Master Por tfolio in","page_number":47,"box":{"x":70,"y":370,"width":795,"height":11}},{"id":"2ae830c9-82a3-41a7-a457-4b16cc54c014","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":47,"box":{"x":68,"y":385,"width":830,"height":11}},{"id":"04b03a22-c301-4a71-8ecc-372d14b2ef1d","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":47,"box":{"x":102,"y":407,"width":783,"height":12}},{"id":"d544bc97-319d-42a7-9856-e4289d13ede5","block_type":"box","text":"funds in the BlackRock-advised fund complex. Cer tain information contained herein may not be relevant to a","page_number":47,"box":{"x":68,"y":423,"width":772,"height":11}},{"id":"f486339d-6358-433c-a438-b554f0868bec","block_type":"box","text":"par ticular Fund.","page_number":47,"box":{"x":70,"y":438,"width":109,"height":11}},{"id":"52ffe6ed-8792-45ef-ae4c-4e97b58862d0","block_type":"box","text":"INVESTMENT RISKS AND CONSIDERATIONS","page_number":47,"box":{"x":314,"y":467,"width":351,"height":10}},{"id":"2b801dd2-f3b9-449d-ba96-8c2e12f5a393","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":47,"box":{"x":102,"y":490,"width":805,"height":11}},{"id":"81f017f3-edac-4155-981b-5ac12ae8d192","block_type":"box","text":"of the Funds may use, and the risks and considerations associated with those investments and investment","page_number":47,"box":{"x":69,"y":505,"width":765,"height":11}},{"id":"28c41d54-61b2-41d8-bfb3-fbf0e430fa18","block_type":"box","text":"strategies. Please see each Fund’s prospectuses (the “Prospectus”) and the “Investment Objective and Policies,”","page_number":47,"box":{"x":69,"y":520,"width":811,"height":12}},{"id":"afa76b4f-d36f-48ff-92a5-ef91a23ff408","block_type":"box","text":"“Investment Objectives and Policies” or “Investment Strategies and Risks of the Fund” section, as applicable, of Par t","page_number":47,"box":{"x":70,"y":535,"width":837,"height":12}},{"id":"359ced9a-469b-4e78-a19a-7b3b4d1a11f2","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":47,"box":{"x":70,"y":550,"width":785,"height":11}},{"id":"dd26a591-fc33-4f5e-87e8-443b3296ce42","block_type":"box","text":"section about the risks and considerations associated with a Fund’s investments and/or investment strategies","page_number":47,"box":{"x":69,"y":566,"width":791,"height":11}},{"id":"4ac74f0f-8e0f-4b8b-9d2f-8703477bb327","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":47,"box":{"x":69,"y":581,"width":805,"height":11}},{"id":"7bfb4f50-cdf9-42e9-860c-f2e2358b77a7","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":47,"box":{"x":69,"y":596,"width":835,"height":11}},{"id":"0aaf1faf-2ed5-45c0-9a82-e23e7b1ec443","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":47,"box":{"x":69,"y":611,"width":840,"height":11}},{"id":"4decbd64-80a1-476e-929e-ab616d864fd4","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":47,"box":{"x":70,"y":626,"width":770,"height":11}},{"id":"3de6319d-c342-4103-a328-7df069126c38","block_type":"box","text":"Asset-Backed Securities.","page_number":47,"box":{"x":101,"y":649,"width":183,"height":9}},{"id":"16e6db02-55cd-4831-b18a-65174071fa01","block_type":"box","text":"Asset-backed securities are securities backed by home equity loans, installment sale","page_number":47,"box":{"x":290,"y":649,"width":607,"height":11}},{"id":"09fb4c42-93d6-4f72-949b-d746e1cc5dc4","block_type":"box","text":"contracts, credit card receivables or other assets. Asset-backed securities are “pass-through” securities, meaning","page_number":47,"box":{"x":69,"y":664,"width":814,"height":11}},{"id":"992a5abc-3e7f-474e-b80c-2f02e20af417","block_type":"box","text":"that principal and interest payments — net of expenses — made by the borrower on the underlying assets (such as","page_number":47,"box":{"x":68,"y":679,"width":825,"height":11}},{"id":"f5f82acb-e8d2-4a9f-b84a-fcd6eb33b677","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":47,"box":{"x":69,"y":694,"width":813,"height":11}},{"id":"ac0e3b2d-af3c-42cd-9c2b-ec51184a4ff2","block_type":"box","text":"fixed-income securities, typically increases when interest rates fall and decreases when interest rates rise. However,","page_number":47,"box":{"x":68,"y":709,"width":830,"height":11}},{"id":"f89f2667-d145-40e5-b3cf-3624b5c9bc09","block_type":"box","text":"asset-backed securities differ from traditional fixed-income securities because of their potential for prepayment. The","page_number":47,"box":{"x":69,"y":724,"width":827,"height":11}},{"id":"ef8fcbf3-28e0-4e0e-8ba6-892a03245535","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":47,"box":{"x":70,"y":739,"width":813,"height":12}},{"id":"88a2744b-7855-4d85-a05c-1dd94cfa621a","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":47,"box":{"x":68,"y":755,"width":818,"height":11}},{"id":"7759cf77-1459-482e-844f-76ebf96d4510","block_type":"box","text":"the underlying assets. In a period of declining interest rates, borrowers may prepay the underlying assets more","page_number":47,"box":{"x":68,"y":770,"width":792,"height":11}},{"id":"b4aac1d6-0cf4-4858-9b6f-2b00608ed0f1","block_type":"box","text":"quickly than anticipated, thereby reducing the yield to maturity and the average life of the asset-backed securities.","page_number":47,"box":{"x":69,"y":785,"width":811,"height":11}},{"id":"66240289-9bf2-4a17-bfa6-eaecfda79e0d","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":47,"box":{"x":70,"y":800,"width":832,"height":11}},{"id":"a0a83ba9-446c-4bbb-8dbf-274392c530cb","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":47,"box":{"x":70,"y":815,"width":792,"height":11}},{"id":"199e32be-952f-427d-9a8a-a27425185acf","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":47,"box":{"x":69,"y":830,"width":825,"height":11}},{"id":"6df9b0ce-7f59-49cb-92f7-330dabbba5ef","block_type":"box","text":"such securities at a discount, both scheduled payments and unscheduled prepayments will increase current and total","page_number":47,"box":{"x":69,"y":846,"width":838,"height":10}},{"id":"26f32b7e-ec49-4af7-a6d9-2febb04ca618","block_type":"box","text":"returns and unscheduled prepayments will also accelerate the recognition of income which, when distributed to","page_number":47,"box":{"x":69,"y":860,"width":793,"height":12}},{"id":"f32f2af5-cb44-47c8-bee0-d2eaa41f0a74","block_type":"box","text":"shareholders, will be taxable as ordinary income. In a period of rising interest rates, prepayments of the underlying","page_number":47,"box":{"x":69,"y":875,"width":819,"height":12}},{"id":"2b0ecda3-04b4-4123-8898-4fbd361895d9","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":47,"box":{"x":69,"y":891,"width":834,"height":11}},{"id":"8296372d-1ee2-4b96-a9ee-173f0aba8bbc","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":47,"box":{"x":69,"y":906,"width":837,"height":11}},{"id":"c5900c0d-faee-489a-ab20-1bc002164117","block_type":"box","text":"II-1","page_number":47,"box":{"x":478,"y":943,"width":23,"height":9}},{"id":"b3f80c05-8d79-4fdf-b3ec-7366c22112c0","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":47,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ab625203-3cfa-45fc-a15d-5e2bfd3e4601","block_type":"box","text":"Since the value of longer-term securities generally fluctuates more widely in response to changes in interest rates","page_number":48,"box":{"x":69,"y":45,"width":810,"height":11}},{"id":"d66e7a99-7dbd-40d7-af30-a4df7faa8b45","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":48,"box":{"x":68,"y":60,"width":833,"height":11}},{"id":"cda46811-6839-4551-8b07-76d6f89a81aa","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":48,"box":{"x":70,"y":75,"width":827,"height":11}},{"id":"b02ad8ed-8346-4dca-bcb5-43df72de6c75","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":48,"box":{"x":68,"y":90,"width":805,"height":11}},{"id":"f65727c5-98c2-4c04-b14b-5ec6b8870215","block_type":"box","text":"retard prepayments and thus affect maturities.","page_number":48,"box":{"x":69,"y":105,"width":333,"height":11}},{"id":"4b277d6d-6d6f-4a4c-820d-4a5a9e04cd04","block_type":"box","text":"Asset-Based Securities.","page_number":48,"box":{"x":101,"y":128,"width":173,"height":9}},{"id":"1cb58fed-fa61-4009-9e55-6863922abc77","block_type":"box","text":"Cer tain Funds may invest in debt, preferred or conver tible securities, the principal","page_number":48,"box":{"x":281,"y":128,"width":582,"height":11}},{"id":"9689d4d7-9b0b-4e9b-bb92-9fdec44d1c30","block_type":"box","text":"amount, redemption terms or conversion terms of which are related to the market price of some natural resource","page_number":48,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"38980ac0-9f88-427a-bd0c-586fad3240a2","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":48,"box":{"x":69,"y":158,"width":815,"height":11}},{"id":"c22bda38-4ff6-4ef6-9a52-96c46e106c02","block_type":"box","text":"asset-based securities that are rated, or are issued by issuers that have outstanding debt obligations rated,","page_number":48,"box":{"x":69,"y":173,"width":769,"height":11}},{"id":"af12f371-38ed-46f6-853b-f724552dd434","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":48,"box":{"x":70,"y":188,"width":833,"height":12}},{"id":"6820c4d0-7427-4c2d-839f-07091f97410b","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":48,"box":{"x":70,"y":203,"width":795,"height":12}},{"id":"fcf9a22e-8eb9-4a2d-9b11-7400e167bf27","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":48,"box":{"x":70,"y":218,"width":824,"height":12}},{"id":"e93a5fb3-2d84-4527-aea5-ad83e0ae57dd","block_type":"box","text":"rating category, while considered “investment grade,” may have cer tain speculative characteristics and may be more","page_number":48,"box":{"x":69,"y":234,"width":832,"height":11}},{"id":"35e409ac-e52d-419c-99bd-8dd57ad134c6","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":48,"box":{"x":70,"y":249,"width":797,"height":11}},{"id":"aa833ecb-25a5-46cb-87d7-4de05ee842bf","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":48,"box":{"x":69,"y":264,"width":768,"height":11}},{"id":"3ebb591c-fa9f-40fe-9654-e439ef16fc92","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":48,"box":{"x":69,"y":279,"width":819,"height":11}},{"id":"f9694c38-8f2a-4694-9f35-31c4a2ab790d","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":48,"box":{"x":69,"y":294,"width":829,"height":11}},{"id":"89d7bc77-a52c-420a-a84a-129fb82506e8","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":48,"box":{"x":68,"y":309,"width":780,"height":11}},{"id":"620d41c6-3842-4afb-a916-2c496a57f958","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":48,"box":{"x":69,"y":325,"width":815,"height":11}},{"id":"08036f2a-1ac6-4cbd-a7c4-f2207bc096e9","block_type":"box","text":"preferred dividends at below market (or even relatively nominal) rates. Cer tain asset-based securities may be payable","page_number":48,"box":{"x":70,"y":339,"width":837,"height":12}},{"id":"7cfa45da-22a5-46f1-b600-ffb79c38f170","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":48,"box":{"x":69,"y":355,"width":812,"height":11}},{"id":"c569b946-6914-4da3-9790-7bad7f3a9508","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":48,"box":{"x":69,"y":370,"width":836,"height":11}},{"id":"fb3660c3-b006-4fd1-bdb4-2d2533bd4941","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":48,"box":{"x":69,"y":385,"width":778,"height":11}},{"id":"0bab8228-d798-4216-a5c3-aa3a647adc86","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":48,"box":{"x":69,"y":400,"width":819,"height":11}},{"id":"2c4957a0-f945-42dd-9000-7e7d491668b3","block_type":"box","text":"appreciation in the underlying asset.","page_number":48,"box":{"x":69,"y":415,"width":258,"height":11}},{"id":"918390b7-edd2-4a6a-bf09-c1c41c5011c6","block_type":"box","text":"Precious Metal-Related Securities.","page_number":48,"box":{"x":102,"y":438,"width":243,"height":9}},{"id":"0b68a864-a0b5-4796-ae16-91d73388fbda","block_type":"box","text":"A Fund may invest in the equity and other securities of companies that","page_number":48,"box":{"x":351,"y":438,"width":503,"height":11}},{"id":"20db3373-1e2e-4af6-85de-f4e29973dd52","block_type":"box","text":"explore for, extract, process or deal in precious metals (","page_number":48,"box":{"x":69,"y":453,"width":398,"height":11}},{"id":"3677b194-9d76-4014-8bd2-18cac07e2540","block_type":"box","text":"e.g.","page_number":48,"box":{"x":469,"y":454,"width":25,"height":10}},{"id":"c9356d94-fdc4-487e-b26a-47d947639934","block_type":"box","text":", gold, silver and platinum), and in asset-based securities","page_number":48,"box":{"x":497,"y":453,"width":407,"height":11}},{"id":"989cf213-add4-4a71-b7d4-7155e01a6f84","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":48,"box":{"x":70,"y":468,"width":801,"height":11}},{"id":"b3636d4f-1a1e-4042-b7d2-bab7254c0eed","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":48,"box":{"x":70,"y":483,"width":815,"height":11}},{"id":"ca67a506-e05b-43ce-9af8-ee4e5947eff5","block_type":"box","text":"are expected to benefit from inflationary pressure or other economic, political or financial uncer tainty or instability.","page_number":48,"box":{"x":69,"y":498,"width":815,"height":11}},{"id":"a6550b6f-cf06-403e-9202-73d72ae25164","block_type":"box","text":"Based on historical experience, during periods of economic or financial instability the securities of companies","page_number":48,"box":{"x":70,"y":513,"width":779,"height":12}},{"id":"8d1d4b73-97f0-4d17-9ecd-b9d00ecb6feb","block_type":"box","text":"involved in precious metals may be subject to extreme price fluctuations, reflecting the high volatility of precious","page_number":48,"box":{"x":70,"y":528,"width":799,"height":12}},{"id":"462c3b4a-1738-4cd7-bea1-4066b24cd995","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":48,"box":{"x":69,"y":543,"width":838,"height":12}},{"id":"b2a4a8b1-1804-40ef-beb4-6be59fb854ea","block_type":"box","text":"precious metal-related companies, which may, in turn, adversely affect the financial condition of such companies. The","page_number":48,"box":{"x":70,"y":559,"width":838,"height":11}},{"id":"ac0a5c4f-8b13-4ca7-999d-39550c99df9b","block_type":"box","text":"major producers of gold include the Republic of South Africa, Russia, Canada, the United States, Brazil and Australia.","page_number":48,"box":{"x":69,"y":574,"width":835,"height":11}},{"id":"e51200ea-1cc7-4c57-981d-c207bd7cb886","block_type":"box","text":"Sales of gold by Russia are largely unpredictable and often relate to political and economic considerations rather","page_number":48,"box":{"x":69,"y":589,"width":806,"height":11}},{"id":"9fc23068-9422-495a-982f-c81bb81df1b3","block_type":"box","text":"than to market forces. Economic, financial, social and political factors within South Africa may significantly affect","page_number":48,"box":{"x":68,"y":604,"width":805,"height":11}},{"id":"8ac53be2-c2b8-4593-9676-40a8c3153ead","block_type":"box","text":"South African gold production.","page_number":48,"box":{"x":69,"y":619,"width":213,"height":11}},{"id":"482912ba-2701-4061-94be-1f8710625861","block_type":"box","text":"Borrowing and Leverage.","page_number":48,"box":{"x":102,"y":642,"width":179,"height":11}},{"id":"bbaa3c16-ce7e-45ac-aef1-caf9277f7b7a","block_type":"box","text":"Each Fund may borrow as a temporary measure for extraordinary or emergency","page_number":48,"box":{"x":288,"y":642,"width":563,"height":11}},{"id":"f2c4d5b2-04b7-4861-b87f-7e557ac3761a","block_type":"box","text":"purposes, including to meet redemptions or to settle securities transactions. Cer tain Funds will not purchase","page_number":48,"box":{"x":70,"y":657,"width":777,"height":11}},{"id":"613d11e7-9752-4961-9f87-373d4bdf1ac7","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":48,"box":{"x":69,"y":672,"width":806,"height":11}},{"id":"fe0e8b66-8a63-4de8-9384-7293521d0e21","block_type":"box","text":"(b) to exercise subscription rights when outstanding borrowings have been obtained exclusively for settlements of","page_number":48,"box":{"x":69,"y":687,"width":810,"height":11}},{"id":"3a87745c-bdd6-41f2-97a7-62fe2e08dc7f","block_type":"box","text":"other securities transactions.","page_number":48,"box":{"x":69,"y":703,"width":207,"height":8}},{"id":"d9eb9ab0-4cf8-49a4-8e01-de761e4ade95","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":48,"box":{"x":102,"y":725,"width":806,"height":11}},{"id":"c8a0664b-8f0a-40a8-b858-ce3948b249cd","block_type":"box","text":"The purchase of securities while borrowings are outstanding will have the effect of leveraging the Fund. Such","page_number":48,"box":{"x":68,"y":740,"width":776,"height":11}},{"id":"54587576-444e-4065-a057-ddb6ac47c0c7","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":48,"box":{"x":70,"y":755,"width":813,"height":11}},{"id":"3c168c49-70df-4f27-8933-a50087d18267","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":48,"box":{"x":69,"y":770,"width":813,"height":12}},{"id":"250125c1-0ec1-489d-b533-0b59b9eecee8","block_type":"box","text":"time, creates special risks. For example, leveraging may exaggerate changes in the net asset value (“NAV”) of Fund","page_number":48,"box":{"x":68,"y":785,"width":823,"height":12}},{"id":"2bc6d2b1-fba9-4371-9718-28802e445d40","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":48,"box":{"x":69,"y":801,"width":806,"height":11}},{"id":"babe1f2c-4ed2-410c-a29e-326b7df8c3eb","block_type":"box","text":"assets may change in value during the time the borrowings are outstanding. Borrowings will create interest expenses","page_number":48,"box":{"x":69,"y":816,"width":835,"height":11}},{"id":"8e65e8aa-3072-4ad7-b718-fb2b3549dcfe","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":48,"box":{"x":68,"y":831,"width":835,"height":11}},{"id":"668a2f5d-c88f-4ede-945a-4385c79a5d18","block_type":"box","text":"capital appreciation derived from securities purchased with borrowed funds exceeds the interest the Fund will have to","page_number":48,"box":{"x":69,"y":846,"width":838,"height":11}},{"id":"383e3482-f380-4450-944b-83005da274e4","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":48,"box":{"x":70,"y":861,"width":835,"height":11}},{"id":"792e7ccf-5da5-4cfb-a714-8deb3fa4eb40","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":48,"box":{"x":69,"y":876,"width":825,"height":11}},{"id":"31d76c04-46f2-41b4-a266-8f90fc23ee34","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":48,"box":{"x":69,"y":891,"width":837,"height":12}},{"id":"6a6b9a1c-430a-4988-9ea4-40ccf1d4d9bb","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":48,"box":{"x":68,"y":906,"width":805,"height":12}},{"id":"8cef6990-b376-4f86-8e2d-a1ed8427654f","block_type":"box","text":"II-2","page_number":48,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"942a56b6-fae8-4772-af25-5b5b41b52856","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":48,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4f15a151-7055-4645-b5b1-34ed65d2a03d","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":49,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"f5a1639b-e19a-49ff-822d-d68d5cdd1e08","block_type":"box","text":"shareholders of maintaining the leveraged position will outweigh the current reduced return.","page_number":49,"box":{"x":69,"y":60,"width":653,"height":11}},{"id":"faed5580-f1fd-4a17-b752-eb2cbe4d656f","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":49,"box":{"x":102,"y":82,"width":780,"height":12}},{"id":"05779f8a-1c65-44a3-a25e-e32c2a7a6210","block_type":"box","text":"relating to asset coverage, por tfolio composition requirements and other matters. It is not anticipated that","page_number":49,"box":{"x":69,"y":98,"width":759,"height":11}},{"id":"5a6e0dea-2f5a-402c-9ffc-2fcfcdfd96bd","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":49,"box":{"x":69,"y":113,"width":822,"height":11}},{"id":"111f0fcd-28ea-4172-9264-769b89d6666a","block_type":"box","text":"Fund’s investment objectives and policies. However, a breach of any such covenants not cured within the specified","page_number":49,"box":{"x":70,"y":128,"width":816,"height":11}},{"id":"b849c473-1f87-490c-8735-e804bf86891c","block_type":"box","text":"cure period may result in acceleration of outstanding indebtedness and require the Fund to dispose of por tfolio","page_number":49,"box":{"x":69,"y":143,"width":792,"height":11}},{"id":"304af03b-4cfc-4f88-a2fc-db2f8ca7c4bf","block_type":"box","text":"investments at a time when it may be disadvantageous to do so.","page_number":49,"box":{"x":70,"y":158,"width":459,"height":11}},{"id":"19cf9d7e-6434-42e6-9643-2ad5329a88a6","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":49,"box":{"x":102,"y":181,"width":786,"height":11}},{"id":"5d1d6242-d200-4608-914c-6edaf574d11d","block_type":"box","text":"no less favorable than those available from comparable sources of funds in the marketplace.","page_number":49,"box":{"x":69,"y":196,"width":663,"height":11}},{"id":"ed6d339b-868f-4bd8-babc-f08bab383c1e","block_type":"box","text":"Cash Management.","page_number":49,"box":{"x":102,"y":219,"width":140,"height":11}},{"id":"7071c708-e371-4d5b-900e-1e3eb46d0220","block_type":"box","text":"Generally, the Manager will employ futures and options on futures to provide liquidity","page_number":49,"box":{"x":249,"y":218,"width":603,"height":12}},{"id":"4c0252c3-8580-41da-aafc-d483f149386e","block_type":"box","text":"necessary to meet anticipated redemptions or for day-to-day operating purposes. However, if considered appropriate","page_number":49,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"4e594d48-c4f6-4bee-b4b1-f2aa678063ba","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":49,"box":{"x":70,"y":249,"width":799,"height":11}},{"id":"4e14cdca-6ed2-4216-9f10-e4d349587379","block_type":"box","text":"remaining maturities of 397 days or less for liquidity purposes. Such instruments would consist of: (i) obligations of","page_number":49,"box":{"x":69,"y":264,"width":826,"height":11}},{"id":"00353a35-ea91-4e8e-be12-aad8875ec70f","block_type":"box","text":"the U.S. Government, its agencies, instrumentalities, authorities or political subdivisions (“U.S. Government","page_number":49,"box":{"x":68,"y":279,"width":772,"height":11}},{"id":"f9e8c4f3-fc32-4cac-930e-204b160c0b5b","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":49,"box":{"x":69,"y":294,"width":823,"height":11}},{"id":"2fa7f3a3-2d08-4d2b-88f3-c33e7f44676c","block_type":"box","text":"comparable quality in the opinion of the Manager; (iii) commercial paper; (iv) bank obligations, including negotiable","page_number":49,"box":{"x":69,"y":309,"width":816,"height":11}},{"id":"1d82cd89-1386-4fec-8a76-4a9ce788657d","block_type":"box","text":"cer tificates of deposit, time deposits and bankers’ acceptances; and (v) repurchase agreements. At the time the","page_number":49,"box":{"x":69,"y":324,"width":804,"height":12}},{"id":"b42002b7-b641-431a-a99e-17407d11756b","block_type":"box","text":"Fund invests in commercial paper, bank obligations or repurchase agreements, the issuer or the issuer’s parent must","page_number":49,"box":{"x":70,"y":340,"width":839,"height":11}},{"id":"fe9c30fa-09de-4d7a-8c3b-89776e4108e0","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":49,"box":{"x":69,"y":355,"width":824,"height":11}},{"id":"d56da0a9-f620-4d62-994e-4b1876cb499e","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":49,"box":{"x":69,"y":370,"width":771,"height":11}},{"id":"02b3b8a4-4335-4427-970b-c4d4cb2026a2","block_type":"box","text":"available, the instrument must be of comparable quality in the opinion of the Manager. For more information on","page_number":49,"box":{"x":69,"y":385,"width":793,"height":11}},{"id":"610c8b56-6881-4a20-b8da-474aa89613e5","block_type":"box","text":"money market instruments, see “Money Market Securities” below.","page_number":49,"box":{"x":69,"y":400,"width":472,"height":11}},{"id":"9a7b60a9-3f1e-4a29-8f51-d397d3c4a72d","block_type":"box","text":"Collateralized Debt Obligations.","page_number":49,"box":{"x":102,"y":423,"width":229,"height":11}},{"id":"ba390a12-7aa7-4f9a-b7e2-5249abbf471d","block_type":"box","text":"Cer tain Funds may invest in collateralized debt obligations (“CDOs”), which","page_number":49,"box":{"x":337,"y":423,"width":534,"height":11}},{"id":"b5978b30-8d59-4f27-bb1d-73fa0d9afeea","block_type":"box","text":"include collateralized bond obligations (“CBOs”), collateralized loan obligations (“CLOs”) and other similarly","page_number":49,"box":{"x":70,"y":438,"width":764,"height":11}},{"id":"f608d21b-425d-4efa-9547-c0a71a50b2a7","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":49,"box":{"x":69,"y":453,"width":787,"height":11}},{"id":"ad08bd76-52ed-4111-a3e1-e40bb454aa19","block_type":"box","text":"special purpose entity (“SPE”) and is typically backed by a diversified pool of fixed-income securities (which may","page_number":49,"box":{"x":69,"y":468,"width":797,"height":11}},{"id":"1e3bfd06-c905-4ad5-8356-c849ebdce8ea","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":49,"box":{"x":70,"y":483,"width":798,"height":11}},{"id":"21cbd1f6-6c88-4621-85d7-ebd652c00f02","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":49,"box":{"x":69,"y":498,"width":827,"height":11}},{"id":"2759887e-fcac-493a-b216-7aa6efb66a74","block_type":"box","text":"senior secured loans, senior unsecured loans, and subordinate corporate loans, including loans that may be rated","page_number":49,"box":{"x":69,"y":514,"width":814,"height":11}},{"id":"fe335dd6-7058-49a8-a5a1-faef17a890bd","block_type":"box","text":"below investment grade or equivalent unrated loans, held by such issuer. Investments in a CLO organized outside of","page_number":49,"box":{"x":69,"y":528,"width":828,"height":12}},{"id":"919f7858-7e54-483e-a6c3-263a22d68627","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":49,"box":{"x":68,"y":543,"width":782,"height":12}},{"id":"ce5a3348-a675-42c1-9924-eb1b9d7672bd","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":49,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"fdbbb58d-74aa-4180-82bd-7de2d56aa414","block_type":"box","text":"of a senior-subordinate structure, over-collateralization or bond insurance, such enhancement may not always be","page_number":49,"box":{"x":69,"y":574,"width":803,"height":11}},{"id":"67901192-21b2-41e5-9569-959576ef3054","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":49,"box":{"x":70,"y":589,"width":827,"height":11}},{"id":"d7f6edb2-8397-4bbc-ab27-76636be37467","block_type":"box","text":"use derivatives contracts to create “synthetic” exposure to assets rather than holding such assets directly, which","page_number":49,"box":{"x":69,"y":604,"width":807,"height":11}},{"id":"6cf3836b-07b6-4ac6-8d63-f434759498b0","block_type":"box","text":"entails the risks of derivative instruments described elsewhere in this SAI. CDOs may charge management fees and","page_number":49,"box":{"x":69,"y":619,"width":826,"height":11}},{"id":"4e79f470-ead9-4b95-82bf-6ad28df02be3","block_type":"box","text":"administrative expenses, which are in addition to those of a Fund.","page_number":49,"box":{"x":69,"y":634,"width":469,"height":11}},{"id":"707ddece-8a1b-47de-b963-4cbc4d67ce49","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":49,"box":{"x":102,"y":657,"width":758,"height":11}},{"id":"742b8dde-b74d-4fc8-8b09-72272ff21cca","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":49,"box":{"x":68,"y":672,"width":836,"height":11}},{"id":"91bff406-a885-4764-8ada-964c04184e82","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":49,"box":{"x":69,"y":687,"width":838,"height":11}},{"id":"eddb41ce-789c-4d9a-9274-f839a5a90a4e","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":49,"box":{"x":70,"y":702,"width":835,"height":12}},{"id":"0cbee0da-ab42-4a1f-b85e-a349216626d3","block_type":"box","text":"ratings and lower yields than its underlying securities, and may be rated investment grade. Despite the protection","page_number":49,"box":{"x":69,"y":718,"width":808,"height":11}},{"id":"cf604a07-fe39-4812-8dbf-1c591126c04d","block_type":"box","text":"from the equity tranche, CBO or CLO tranches can experience substantial losses due to actual defaults, downgrades","page_number":49,"box":{"x":68,"y":732,"width":830,"height":12}},{"id":"bbc51e9a-20e5-4a28-8089-59f9a223920e","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":49,"box":{"x":69,"y":748,"width":806,"height":11}},{"id":"337a8adf-aa83-4562-8803-ca378413ee94","block_type":"box","text":"tests, increased sensitivity to defaults due to collateral default and disappearance of protecting tranches, market","page_number":49,"box":{"x":68,"y":763,"width":809,"height":11}},{"id":"eb42dee3-a23b-4a45-b341-39165cc4d54a","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":49,"box":{"x":69,"y":778,"width":835,"height":11}},{"id":"d0565699-374f-44e1-a054-b3062307f919","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":49,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"8cd6dcec-c248-4774-ab2c-7b0d2e1bc20e","block_type":"box","text":"cash), which involves continued exposure to default risk with respect to such payments.","page_number":49,"box":{"x":69,"y":808,"width":625,"height":11}},{"id":"3714ee57-2768-4fb4-bffa-c59e331e6a83","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":49,"box":{"x":101,"y":831,"width":789,"height":11}},{"id":"68173926-39d1-4f6c-96f3-411f6b6068d9","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":49,"box":{"x":69,"y":846,"width":830,"height":11}},{"id":"46620ae8-1de3-4d9c-a01a-c6f70a35d016","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":49,"box":{"x":69,"y":861,"width":830,"height":11}},{"id":"31a0964f-d17d-4600-8700-14fb7cfb9a29","block_type":"box","text":"for Rule 144A transactions. In addition to the normal risks associated with fixed-income securities and asset-backed","page_number":49,"box":{"x":68,"y":876,"width":831,"height":9}},{"id":"b48b64f1-2e0f-415f-b7f0-88a902078182","block_type":"box","text":"securities generally discussed elsewhere in this SAI, CDOs carry additional risks including, but not limited to: (i) the","page_number":49,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"0d808de0-9107-4a18-b8ad-5206c5368a15","block_type":"box","text":"possibility that distributions from collateral securities will not be adequate to make interest or other payments; (ii) the","page_number":49,"box":{"x":70,"y":906,"width":838,"height":12}},{"id":"573df9aa-fbf0-432a-bd4d-9533d3beceb1","block_type":"box","text":"II-3","page_number":49,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"a6a8520a-d9c1-4039-a766-8f1be98066b0","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":49,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f1165470-a4c6-4351-8259-a4799a70ca6e","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":50,"box":{"x":69,"y":45,"width":832,"height":11}},{"id":"ddbae074-22cb-45fe-a296-9ea71abe7e47","block_type":"box","text":"rating organization (“NRSRO”); (iii) a Fund may invest in tranches of CDOs that are subordinate to other tranches;","page_number":50,"box":{"x":69,"y":60,"width":807,"height":11}},{"id":"fa2573ac-7d71-48d5-a2ec-54c45bd9ca8f","block_type":"box","text":"(iv) the structure and complexity of the transaction and the legal documents could lead to disputes among investors","page_number":50,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"ff45effc-6eaf-468f-a2ef-4180dea0e2d1","block_type":"box","text":"regarding the characterization of proceeds; (v) the investment return achieved by the Fund could be significantly","page_number":50,"box":{"x":69,"y":90,"width":795,"height":11}},{"id":"a6130c7b-b75c-4aae-ae22-744d17d14b18","block_type":"box","text":"different than those predicted by financial models; (vi) the lack of a readily available secondary market for CDOs;","page_number":50,"box":{"x":69,"y":105,"width":804,"height":11}},{"id":"d23c5952-8825-45b0-b31a-14bae68f8402","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":50,"box":{"x":69,"y":120,"width":805,"height":12}},{"id":"fcc7ea1b-4a51-4f4a-920d-336b5e1c315c","block_type":"box","text":"CDO’s manager may per form poorly.","page_number":50,"box":{"x":69,"y":135,"width":257,"height":12}},{"id":"94cd3702-0ce4-408f-86c2-38bc377d7eff","block_type":"box","text":"Commercial Paper.","page_number":50,"box":{"x":102,"y":158,"width":136,"height":11}},{"id":"2ba2b6c6-f8fc-45f9-843a-21fcd87ec1cd","block_type":"box","text":"Cer tain Funds may purchase commercial paper. Commercial paper purchasable by each","page_number":50,"box":{"x":244,"y":158,"width":626,"height":11}},{"id":"f1e014ee-b594-491b-bf83-b9bae2959e98","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":50,"box":{"x":70,"y":173,"width":781,"height":11}},{"id":"5020b2b8-8e4b-4b9c-971e-30e4e1010c9d","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":50,"box":{"x":70,"y":188,"width":806,"height":12}},{"id":"efedf47b-3c8e-4489-9a22-1be1b0ba2b72","block_type":"box","text":"restricted as to disposition under the Federal securities laws, and is frequently sold (and resold) to institutional","page_number":50,"box":{"x":69,"y":203,"width":792,"height":12}},{"id":"62ddc7fc-7586-42c0-93fe-478014721057","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":50,"box":{"x":70,"y":218,"width":820,"height":12}},{"id":"db4bb03e-2b30-4434-9d82-5b7018f17cd7","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":50,"box":{"x":69,"y":234,"width":831,"height":11}},{"id":"7021e8c2-c527-47d6-8c3e-ec5ba6557cb3","block_type":"box","text":"exemption provided in Rule 144A under the Securities Act. Most Funds can purchase commercial paper rated (at the","page_number":50,"box":{"x":69,"y":249,"width":831,"height":11}},{"id":"453f9720-0142-4c64-8cd8-eef072755131","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":50,"box":{"x":68,"y":264,"width":805,"height":11}},{"id":"9517f08f-7cd1-488d-9798-d16d7be15c79","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":50,"box":{"x":69,"y":279,"width":707,"height":11}},{"id":"a400275e-32ba-492f-a1db-f7ff4b44c0f7","block_type":"box","text":"Commercial paper is generally considered to be shor t-term unsecured debt of corporations. Like all fixed income","page_number":50,"box":{"x":102,"y":302,"width":801,"height":11}},{"id":"5987d096-4fa3-4eca-b7a6-2e26acf2f668","block_type":"box","text":"securities, commercial paper prices are susceptible to fluctuations in interest rates. If interest rates rise, commercial","page_number":50,"box":{"x":69,"y":317,"width":836,"height":11}},{"id":"7fc358e5-fdc3-4e83-8195-ee0afe90d150","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":50,"box":{"x":70,"y":332,"width":826,"height":11}},{"id":"5e4c99f6-724c-4be0-bdaf-810ea4924760","block_type":"box","text":"makes it less susceptible to volatility than many other fixed income securities because interest rate risk typically","page_number":50,"box":{"x":69,"y":347,"width":803,"height":11}},{"id":"9f0dfadd-887e-479e-9965-9058a1095ce5","block_type":"box","text":"increases as maturity lengths increase. Commercial paper tends to yield smaller returns than longer-term corporate","page_number":50,"box":{"x":70,"y":362,"width":822,"height":11}},{"id":"350bfa91-899e-469d-9de1-52621097bb43","block_type":"box","text":"debt because securities with shor ter maturities typically have lower effective yields than those with longer maturities.","page_number":50,"box":{"x":69,"y":377,"width":835,"height":12}},{"id":"f02968ff-c98f-4705-bab3-bc2c4d0361b4","block_type":"box","text":"Commodity-Linked Derivative Instruments and Hybrid Instruments.","page_number":50,"box":{"x":102,"y":400,"width":483,"height":11}},{"id":"de79effe-ee8c-4645-b024-f26a0806e132","block_type":"box","text":"Cer tain Funds seek to gain exposure to the","page_number":50,"box":{"x":591,"y":400,"width":308,"height":11}},{"id":"8689d1ee-1463-4f13-9cf7-63b5ab0cfa5a","block_type":"box","text":"commodities markets primarily through investments in hybrid instruments. Hybrid instruments are either equity or","page_number":50,"box":{"x":69,"y":415,"width":809,"height":11}},{"id":"014578e1-9487-45f8-9701-53cca79a95c8","block_type":"box","text":"debt derivative securities with one or more commodity-dependent components that have payment features similar to","page_number":50,"box":{"x":69,"y":430,"width":828,"height":11}},{"id":"586cef9c-fc2b-4210-a5ad-05f7c1138a3b","block_type":"box","text":"a commodity futures contract, a commodity option contract, or a combination of both. Therefore, these instruments","page_number":50,"box":{"x":69,"y":445,"width":822,"height":11}},{"id":"f024a889-dd36-4245-8994-19ad2b14a282","block_type":"box","text":"are “commodity-linked.” They are considered “hybrid” instruments because they have both commodity-like and","page_number":50,"box":{"x":69,"y":461,"width":787,"height":11}},{"id":"e9a6fa0a-3aa8-4fd8-bc0b-454462af8754","block_type":"box","text":"security-like characteristics. Hybrid instruments are derivative instruments because at least par t of their value is","page_number":50,"box":{"x":69,"y":475,"width":801,"height":12}},{"id":"137c5b67-d8ea-4170-88a4-bd0867abb67e","block_type":"box","text":"derived from the value of an underlying commodity, futures contract, index or other readily measurable economic","page_number":50,"box":{"x":69,"y":491,"width":800,"height":11}},{"id":"e13c8bbb-94ad-4e94-b647-5c96b71bd55e","block_type":"box","text":"variable.","page_number":50,"box":{"x":68,"y":506,"width":59,"height":9}},{"id":"8de45753-80d6-4f9e-834f-b4918b84456b","block_type":"box","text":"The prices of commodity-linked derivative instruments may move in different directions than investments in","page_number":50,"box":{"x":101,"y":528,"width":763,"height":12}},{"id":"6ec4541f-8fd9-4e0f-8f7a-468d453db893","block_type":"box","text":"traditional equity and debt securities when the value of those traditional securities is declining due to adverse","page_number":50,"box":{"x":68,"y":543,"width":783,"height":12}},{"id":"182e497c-1e54-4f75-9ac6-8d1cf60f394a","block_type":"box","text":"economic conditions. As an example, during periods of rising inflation, debt securities have historically tended to","page_number":50,"box":{"x":69,"y":559,"width":802,"height":11}},{"id":"84679eff-55ea-4375-ad2f-cedd819542ad","block_type":"box","text":"decline in value due to the general increase in prevailing interest rates. Conversely, during those same periods of","page_number":50,"box":{"x":69,"y":574,"width":808,"height":11}},{"id":"17fda5b2-82aa-40ca-9cbe-bfc6f31bdf55","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":50,"box":{"x":69,"y":589,"width":811,"height":11}},{"id":"a3b418e0-2967-416f-b59d-cce3dfdbbf02","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":50,"box":{"x":69,"y":604,"width":791,"height":11}},{"id":"b4f9174b-6262-4c40-8cae-ce1c83885a19","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":50,"box":{"x":69,"y":619,"width":819,"height":11}},{"id":"4c9a6950-f4d9-494a-8649-6ab8eacec38f","block_type":"box","text":"securities. Commodities have historically tended to increase and decrease in value during different par ts of the","page_number":50,"box":{"x":69,"y":634,"width":795,"height":12}},{"id":"0dd530ec-b9e9-46cd-9f51-8e3b4ef385ea","block_type":"box","text":"business cycle than financial assets. Never theless, at various times, commodities prices may move in tandem with","page_number":50,"box":{"x":69,"y":649,"width":822,"height":12}},{"id":"81a9a51e-17c1-4e49-8fd7-ba384b4d366e","block_type":"box","text":"the prices of financial assets and thus may not provide overall por tfolio diversification benefits. Under favorable","page_number":50,"box":{"x":68,"y":664,"width":797,"height":12}},{"id":"0637b8e7-9988-4271-8ed2-4f08b40340d2","block_type":"box","text":"economic conditions, the Fund’s investments may be expected to under-per form an investment in traditional","page_number":50,"box":{"x":69,"y":680,"width":772,"height":11}},{"id":"74005539-9372-4ba1-9b62-20f146e79dea","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":50,"box":{"x":69,"y":695,"width":773,"height":11}},{"id":"b6581926-6a46-4a6e-a648-268e8ca4cea7","block_type":"box","text":"correlation with stocks and bonds.","page_number":50,"box":{"x":69,"y":710,"width":244,"height":9}},{"id":"5c31ae04-00a5-4c2f-8e07-b01bd8da3743","block_type":"box","text":"Qualifying Hybrid Instruments.","page_number":50,"box":{"x":102,"y":732,"width":212,"height":12}},{"id":"9159fbf2-1d04-4328-8726-8b458f6f9507","block_type":"box","text":"Cer tain Funds may invest in hybrid instruments that qualify for exclusion from","page_number":50,"box":{"x":320,"y":732,"width":552,"height":12}},{"id":"b0de424c-abe1-496d-a5e6-8c350aeddd39","block_type":"box","text":"regulation under the Commodity Exchange Act and the regulations adopted thereunder. A hybrid instrument that","page_number":50,"box":{"x":69,"y":748,"width":795,"height":11}},{"id":"23822960-e979-4a5e-a539-789a2335ce81","block_type":"box","text":"qualifies for this exclusion from regulation must be “predominantly a security.” A hybrid instrument is considered to","page_number":50,"box":{"x":69,"y":763,"width":822,"height":11}},{"id":"149c1824-3968-4de4-8013-ba4a72c1eea3","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":50,"box":{"x":69,"y":778,"width":834,"height":11}},{"id":"c4e9212f-ceb2-4546-bbfe-5e012b1511dd","block_type":"box","text":"the hybrid instrument, substantially contemporaneously with delivery of the hybrid instrument; (b) the purchaser or","page_number":50,"box":{"x":68,"y":793,"width":816,"height":11}},{"id":"93e73411-357a-4865-94ac-cd9976ee24dd","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":50,"box":{"x":69,"y":808,"width":817,"height":11}},{"id":"05d0a156-d1cd-4eff-84ec-d02bb763b1af","block_type":"box","text":"paid under subparagraph (a), whether as margin, settlement payment, or otherwise, during the life of the hybrid","page_number":50,"box":{"x":70,"y":823,"width":793,"height":12}},{"id":"3674399d-648a-4dcb-8cda-4dc553c384ea","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":50,"box":{"x":70,"y":838,"width":798,"height":11}},{"id":"b6868204-f0ec-44a0-b7a5-8f791bb0e4c1","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":50,"box":{"x":69,"y":853,"width":797,"height":12}},{"id":"59ea18c4-d4ed-40f3-9dc9-3cda3d60601e","block_type":"box","text":"commodity for future delivery (or option on such a contract) subject to applicable provisions of the Commodity","page_number":50,"box":{"x":69,"y":869,"width":783,"height":11}},{"id":"82f425a4-783f-4a6a-98e7-7ebe83c45665","block_type":"box","text":"Exchange Act. Hybrid instruments may be principal protected, par tially protected, or offer no principal protection. A","page_number":50,"box":{"x":70,"y":884,"width":816,"height":11}},{"id":"90c15573-2fb5-42fe-96eb-6663817f388e","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":50,"box":{"x":70,"y":899,"width":791,"height":11}},{"id":"b094226f-0471-42cb-a2aa-e00bbd16b708","block_type":"box","text":"II-4","page_number":50,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"d2aeeeae-7fee-49cb-b0fb-3ae8b1f4a98d","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":50,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5bc8bff3-d884-4a35-8928-8b03a88cfc46","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":51,"box":{"x":69,"y":45,"width":829,"height":11}},{"id":"b7a29193-d899-4b5e-8745-c42ecef0ae0f","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":51,"box":{"x":68,"y":60,"width":837,"height":11}},{"id":"df6daa45-b7c7-419b-8387-f6ee199c2803","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":51,"box":{"x":70,"y":75,"width":772,"height":11}},{"id":"224ce9c6-e4fe-48d9-8080-08d58460629c","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":51,"box":{"x":69,"y":90,"width":839,"height":11}},{"id":"61b31236-31cc-473b-a470-a4497c397eff","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":51,"box":{"x":70,"y":105,"width":835,"height":11}},{"id":"b4886490-5b20-49f4-801f-004cf862570e","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":51,"box":{"x":69,"y":120,"width":833,"height":12}},{"id":"b2c051c3-b4ba-4bc6-b1d7-9df7ba9fff48","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":51,"box":{"x":68,"y":135,"width":831,"height":11}},{"id":"e60ed9aa-b4f0-44ce-ad78-336a8861d117","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":51,"box":{"x":68,"y":150,"width":795,"height":12}},{"id":"98e53853-229f-4d80-94fb-d0a0771b64c8","block_type":"box","text":"potentially, an amount greater than the stated par value if the underlying commodity, index, futures contract or","page_number":51,"box":{"x":70,"y":166,"width":784,"height":11}},{"id":"26357072-0203-415b-9445-43190b9d7910","block_type":"box","text":"economic variable to which the hybrid instrument is linked has increased in value. Par tially protected hybrid","page_number":51,"box":{"x":69,"y":181,"width":765,"height":11}},{"id":"26a6ac59-3b97-4793-bdca-c580096382ba","block_type":"box","text":"instruments may suffer some loss of principal if the underlying commodity, index, futures contract or economic","page_number":51,"box":{"x":70,"y":196,"width":788,"height":11}},{"id":"1468a7f1-72bc-4632-969b-b288c94c8784","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":51,"box":{"x":68,"y":211,"width":828,"height":11}},{"id":"bd475a7d-4063-4dcc-b5c0-bb89cda4440a","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":51,"box":{"x":70,"y":226,"width":773,"height":11}},{"id":"f858a700-c224-48a7-ad98-401e4168b834","block_type":"box","text":"Hybrid Instruments Without Principal Protection.","page_number":51,"box":{"x":102,"y":249,"width":339,"height":11}},{"id":"c7d917e3-175c-4166-90ab-3d641784daf2","block_type":"box","text":"Cer tain Funds may invest in hybrid instruments that offer no","page_number":51,"box":{"x":448,"y":249,"width":429,"height":11}},{"id":"3b28339f-af07-43ba-ae9d-23b490721767","block_type":"box","text":"principal protection. At maturity, there is a risk that the underlying commodity price, futures contract, index or other","page_number":51,"box":{"x":70,"y":264,"width":818,"height":11}},{"id":"2ba5b170-3649-4f55-841b-699f2c9734f4","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":51,"box":{"x":69,"y":279,"width":780,"height":11}},{"id":"8e9b7beb-4a11-4c8c-9b2c-a4792aa55197","block_type":"box","text":"instrument might not be returned. The Manager, at its discretion, may invest in a par tially protected principal","page_number":51,"box":{"x":70,"y":294,"width":773,"height":11}},{"id":"d485de3c-dae6-40a3-869a-0af23c5d3dcf","block_type":"box","text":"structured note or a note without principal protection. In deciding to purchase a note without principal protection, the","page_number":51,"box":{"x":69,"y":309,"width":832,"height":11}},{"id":"e047f2d6-ac46-44a9-b190-a341256cff2a","block_type":"box","text":"Manager may consider, among other things, the expected per formance of the underlying commodity futures contract,","page_number":51,"box":{"x":70,"y":324,"width":831,"height":12}},{"id":"5849c299-1e08-4a95-bd34-eddbd48da150","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":51,"box":{"x":70,"y":339,"width":831,"height":12}},{"id":"f557a549-fd4a-4bc4-ac6c-b6fc34239cc3","block_type":"box","text":"the Manager believes are relevant.","page_number":51,"box":{"x":68,"y":355,"width":247,"height":11}},{"id":"172b3a7c-9f40-49c3-9bf4-3a33b3e1152a","block_type":"box","text":"Limitations on Leverage.","page_number":51,"box":{"x":102,"y":377,"width":173,"height":12}},{"id":"2c782a2d-921b-4161-8b38-a3d15ecfa2ce","block_type":"box","text":"Some of the hybrid instruments in which a Fund may invest may involve leverage. To","page_number":51,"box":{"x":281,"y":377,"width":598,"height":12}},{"id":"db6e86ad-fd45-470c-9d8c-62d2baf90982","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":51,"box":{"x":69,"y":392,"width":840,"height":12}},{"id":"c07ddbd1-e305-4dbc-8fb6-2d2341792a96","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":51,"box":{"x":69,"y":407,"width":816,"height":12}},{"id":"1ae5fcb3-d6a5-43dc-afd5-efb0e0dcfa92","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":51,"box":{"x":70,"y":423,"width":812,"height":11}},{"id":"9cc05f31-584c-4df0-ae18-ab5ce8b9a7b3","block_type":"box","text":"the underlying commodity, futures contract, index or other economic variable or (ii) the Fund’s “por tfolio leverage","page_number":51,"box":{"x":68,"y":438,"width":803,"height":11}},{"id":"a38c59eb-35dd-42fd-9d28-f80121c3ec7d","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":51,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"6747347a-7d6e-4e36-a581-cb3ef84d2c94","block_type":"box","text":"hybrid instrument, assuming a one percent price increase in the underlying commodity, futures contract, index or","page_number":51,"box":{"x":69,"y":468,"width":803,"height":11}},{"id":"544e97bd-0a79-4e95-9175-bc1b6c79d660","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":51,"box":{"x":69,"y":483,"width":783,"height":11}},{"id":"b742e96c-6c25-44c3-8b58-37afe7b2655e","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":51,"box":{"x":69,"y":498,"width":758,"height":11}},{"id":"165d8327-9840-4917-b3d4-4db0c719dea4","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":51,"box":{"x":69,"y":513,"width":818,"height":12}},{"id":"b629817e-51de-4671-9a9b-8612e67d5590","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":51,"box":{"x":68,"y":528,"width":763,"height":12}},{"id":"dc8d3440-8476-4bda-adac-507a359ba570","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":51,"box":{"x":70,"y":543,"width":787,"height":12}},{"id":"69b0d10e-05a5-4834-9aae-20c1a8658969","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":51,"box":{"x":69,"y":559,"width":757,"height":11}},{"id":"06dcd07d-6447-4611-b832-4c538f2746c3","block_type":"box","text":"investments or use less leverage than may otherwise be allowable.","page_number":51,"box":{"x":70,"y":574,"width":477,"height":11}},{"id":"b4b0414f-6119-4944-b579-fcbf0f4d4a18","block_type":"box","text":"Counterpar ty Risk.","page_number":51,"box":{"x":102,"y":597,"width":130,"height":11}},{"id":"434f6b06-fb3a-4195-9fa7-4705b7bdea05","block_type":"box","text":"A significant risk of hybrid instruments is counterpar ty risk. Unlike exchange-traded futures","page_number":51,"box":{"x":238,"y":596,"width":646,"height":12}},{"id":"0217f6ad-7e64-4e10-97fd-65b875065277","block_type":"box","text":"and options, which are standard contracts, hybrid instruments are customized securities, tailor-made by a specific","page_number":51,"box":{"x":69,"y":612,"width":813,"height":11}},{"id":"7eac8d6c-41cf-4eda-8b01-ac18515205ff","block_type":"box","text":"issuer. With a listed futures or options contract, an investor’s counterpar ty is the exchange clearinghouse. Exchange","page_number":51,"box":{"x":70,"y":627,"width":829,"height":11}},{"id":"aa31a934-1e61-4769-a080-fa83a926ffa4","block_type":"box","text":"clearinghouses are capitalized by the exchange members and typically have high investment grade ratings (","page_number":51,"box":{"x":69,"y":642,"width":763,"height":11}},{"id":"c59bcd61-5aee-4dd6-bf45-a34ad6ceb424","block_type":"box","text":"e.g.","page_number":51,"box":{"x":834,"y":643,"width":25,"height":10}},{"id":"6a165a54-45c5-4f3e-bf06-582aa81595db","block_type":"box","text":",","page_number":51,"box":{"x":861,"y":649,"width":2,"height":3}},{"id":"f665cecc-e207-4782-8b91-7999ad111a6a","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":51,"box":{"x":69,"y":657,"width":836,"height":11}},{"id":"69218193-a501-4932-9bf5-3eea4f23a8de","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":51,"box":{"x":69,"y":672,"width":795,"height":11}},{"id":"31ddf9fa-b0e2-41a1-87f2-05a256a17425","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":51,"box":{"x":70,"y":687,"width":791,"height":11}},{"id":"e9703d85-0829-409f-9a97-22253ec2f3c9","block_type":"box","text":"obligations under the structured note.","page_number":51,"box":{"x":69,"y":703,"width":268,"height":11}},{"id":"b01cde59-de08-4ff0-b9d0-f5528f8138f4","block_type":"box","text":"Convertible Securities.","page_number":51,"box":{"x":102,"y":725,"width":165,"height":9}},{"id":"17d10b58-4808-4f2d-9051-ea5dc0a651cb","block_type":"box","text":"A conver tible security is a bond, debenture, note, preferred stock or other security that","page_number":51,"box":{"x":273,"y":725,"width":619,"height":11}},{"id":"5f1d9a4c-d5d9-4720-b65d-1204b1038e2c","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":51,"box":{"x":69,"y":740,"width":839,"height":11}},{"id":"b6b896d9-2fed-442b-890c-b66d6949e359","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":51,"box":{"x":69,"y":755,"width":826,"height":11}},{"id":"8db0dc3c-3aa6-4257-ab1c-4d9d928a2e49","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":51,"box":{"x":69,"y":770,"width":781,"height":11}},{"id":"bef9b827-4b62-4fd5-adaa-f5d491e6a113","block_type":"box","text":"security matures or is redeemed, conver ted or exchanged. Before conversion, conver tible securities have","page_number":51,"box":{"x":69,"y":785,"width":750,"height":12}},{"id":"aa0069cb-a652-41a6-b3db-d8c4da1d399b","block_type":"box","text":"characteristics similar to nonconver tible income securities in that they ordinarily provide a stable stream of income","page_number":51,"box":{"x":69,"y":801,"width":819,"height":11}},{"id":"1beafa9f-e402-4547-be2f-d9ecdc6595b0","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":51,"box":{"x":68,"y":816,"width":784,"height":11}},{"id":"cad5f842-adb0-48bc-9d7c-9e19741ff18d","block_type":"box","text":"comparable nonconver tible securities. The value of a conver tible security is influenced by changes in interest rates,","page_number":51,"box":{"x":69,"y":831,"width":823,"height":11}},{"id":"8bbcd9ec-a2f2-4737-b2ee-3843019d349c","block_type":"box","text":"with investment value declining as interest rates increase and increasing as interest rates decline. The credit","page_number":51,"box":{"x":68,"y":846,"width":780,"height":11}},{"id":"676984a2-4666-4922-b6b2-cc83ba2c827e","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":51,"box":{"x":69,"y":861,"width":795,"height":11}},{"id":"4c44e91a-fb8a-48d4-95b3-ebbbaadde34f","block_type":"box","text":"Conver tible securities rank senior to common stock in a corporation’s capital structure but are usually subordinated","page_number":51,"box":{"x":69,"y":876,"width":826,"height":11}},{"id":"9b7d5401-7470-4bfc-94b0-e3449ff57ee7","block_type":"box","text":"to comparable nonconver tible securities. Conver tible securities may be subject to redemption at the option of the","page_number":51,"box":{"x":68,"y":891,"width":811,"height":11}},{"id":"9441f40c-f985-46b7-9305-98a1ff731d83","block_type":"box","text":"issuer at a price established in the conver tible security’s governing instrument.","page_number":51,"box":{"x":70,"y":907,"width":563,"height":11}},{"id":"367dc259-da66-4fb6-9619-26e8e372a726","block_type":"box","text":"II-5","page_number":51,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"a0b68d6b-92ac-463e-9e94-3da511e64841","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":51,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"48e606c6-7a54-47b8-90aa-60f337ee62b8","block_type":"box","text":"The characteristics of conver tible securities make them potentially attractive investments for an investment","page_number":52,"box":{"x":101,"y":45,"width":767,"height":11}},{"id":"540a2525-5544-48bc-9250-208a7827ac57","block_type":"box","text":"company seeking a high total return from capital appreciation and investment income. These characteristics include","page_number":52,"box":{"x":69,"y":60,"width":826,"height":11}},{"id":"69f8dcd9-e812-49d6-a01a-26ba86cec257","block_type":"box","text":"the potential for capital appreciation as the value of the underlying common stock increases, the relatively high yield","page_number":52,"box":{"x":68,"y":75,"width":829,"height":11}},{"id":"3ea0314e-1b03-4f90-9843-f1c4375227cf","block_type":"box","text":"received from dividend or interest payments as compared to common stock dividends and decreased risks of decline","page_number":52,"box":{"x":69,"y":90,"width":834,"height":11}},{"id":"b5229edd-835e-458d-b03b-f9a85cd33e4e","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":52,"box":{"x":70,"y":105,"width":788,"height":11}},{"id":"03911e12-d04e-4460-ba21-8e6a5c437df3","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":52,"box":{"x":68,"y":120,"width":839,"height":12}},{"id":"60f287df-3de2-42f2-94fa-b47f6da7dca0","block_type":"box","text":"case if the securities were issued in nonconver tible form.","page_number":52,"box":{"x":69,"y":135,"width":409,"height":9}},{"id":"4a57f8ba-e121-49be-b523-1fe9223cf327","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":52,"box":{"x":102,"y":158,"width":802,"height":11}},{"id":"f433acfa-f95c-456d-a568-a34f0587cb8c","block_type":"box","text":"its credit quality and the potential capital appreciation that is offered by the underlying common stock, among other","page_number":52,"box":{"x":70,"y":173,"width":824,"height":11}},{"id":"50cba3e1-ea9d-4c59-9341-e005ff78f77d","block_type":"box","text":"things.","page_number":52,"box":{"x":68,"y":188,"width":47,"height":12}},{"id":"67ebb4e3-ffa9-41fb-96f4-133f9499ed5c","block_type":"box","text":"Conver tible securities are issued and traded in a number of securities markets. Even in cases where a","page_number":52,"box":{"x":102,"y":211,"width":731,"height":9}},{"id":"5d9fa1f1-31b4-47d5-b774-f7f4004c432c","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":52,"box":{"x":69,"y":226,"width":836,"height":11}},{"id":"1b5c7101-83f4-4230-bd1f-d0a31f6cabdb","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":52,"box":{"x":69,"y":241,"width":832,"height":11}},{"id":"38482d55-916a-431a-a03d-4fc9b4591397","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":52,"box":{"x":69,"y":257,"width":818,"height":11}},{"id":"c564ed8c-263b-4637-8a5d-f661ff405ddd","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":52,"box":{"x":70,"y":271,"width":828,"height":12}},{"id":"a4b4c697-3ced-48d3-95df-9ccd2e9ba266","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":52,"box":{"x":69,"y":286,"width":786,"height":12}},{"id":"3ca126c8-0949-4acc-82d3-3a5edde0e572","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":52,"box":{"x":69,"y":302,"width":800,"height":11}},{"id":"53e413ff-8d3a-4d2d-951c-1b2f83dace7d","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":52,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"0498ca81-f58b-4a2b-b771-ce9e6dbc70aa","block_type":"box","text":"reduce the effect of exchange rate fluctuations.","page_number":52,"box":{"x":69,"y":332,"width":337,"height":11}},{"id":"26c958cc-40ce-44fc-9eab-503b32f8649d","block_type":"box","text":"Apar t from currency considerations, the value of conver tible securities is influenced by both the yield on","page_number":52,"box":{"x":101,"y":355,"width":741,"height":11}},{"id":"85beedab-8011-4e3b-9678-92eb6336a3a2","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":52,"box":{"x":69,"y":370,"width":806,"height":11}},{"id":"de5ff164-12cb-4a6d-86fe-dd5d9f5b63e7","block_type":"box","text":"conver tible security viewed without regard to its conversion feature (","page_number":52,"box":{"x":69,"y":385,"width":485,"height":11}},{"id":"aaeeef86-7c8e-4987-bba5-c4beef60b58a","block_type":"box","text":"i.e.","page_number":52,"box":{"x":557,"y":385,"width":20,"height":9}},{"id":"e0847842-0073-4667-b4c6-7f9e1679df23","block_type":"box","text":", strictly on the basis of its yield) is","page_number":52,"box":{"x":579,"y":385,"width":248,"height":11}},{"id":"6921ae76-e05f-4973-a92b-b10292c49373","block_type":"box","text":"sometimes referred to as its “investment value.” To the extent interest rates change, the investment value of the","page_number":52,"box":{"x":69,"y":400,"width":808,"height":11}},{"id":"e0f7ceac-9e86-4022-bc84-839f846e7208","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":52,"box":{"x":69,"y":415,"width":807,"height":11}},{"id":"e778f394-b580-4eec-bc11-77f7c71fd42b","block_type":"box","text":"influenced by its “conversion value,” which is the market value of the underlying common stock that would be","page_number":52,"box":{"x":70,"y":430,"width":778,"height":11}},{"id":"c12d55a4-e401-4f72-a333-e392d52f4a3b","block_type":"box","text":"obtained if the conver tible security were conver ted. Conversion value fluctuates directly with the price of the","page_number":52,"box":{"x":69,"y":445,"width":769,"height":11}},{"id":"881c0e4a-adcb-4514-b138-e651e8955602","block_type":"box","text":"underlying common stock. If the conversion value of a conver tible security is substantially below its investment value,","page_number":52,"box":{"x":69,"y":460,"width":837,"height":12}},{"id":"50e626dc-3e72-4ffa-8ac1-50e8887f27e2","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":52,"box":{"x":68,"y":475,"width":837,"height":12}},{"id":"4a395f5f-a580-4918-a49a-1a5020c037f8","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":52,"box":{"x":69,"y":491,"width":800,"height":11}},{"id":"d9705912-b191-4175-9066-d215e847352c","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":52,"box":{"x":69,"y":506,"width":828,"height":11}},{"id":"c4c096e8-0934-41a9-9b0e-15ceaf90dafb","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":52,"box":{"x":69,"y":521,"width":808,"height":11}},{"id":"e456c039-4830-4474-8e00-d453b939364d","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":52,"box":{"x":68,"y":536,"width":835,"height":11}},{"id":"ab28094b-5b23-47e6-9536-d7d7184574e6","block_type":"box","text":"the Euromarket are frequently determined at levels that cause the conversion value to affect their market value more","page_number":52,"box":{"x":68,"y":551,"width":836,"height":11}},{"id":"4a1d5912-1a8e-4721-a87c-9284d9691664","block_type":"box","text":"than the securities’ investment value.","page_number":52,"box":{"x":68,"y":566,"width":268,"height":9}},{"id":"bb26509c-9d8f-462a-8751-dc3ed692fccf","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":52,"box":{"x":102,"y":589,"width":740,"height":11}},{"id":"042f10db-5a51-4f98-baa9-90805df04824","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":52,"box":{"x":69,"y":604,"width":801,"height":11}},{"id":"86164099-bcfc-4535-97bd-4177bd8ec33b","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":52,"box":{"x":69,"y":619,"width":800,"height":11}},{"id":"2a50ae90-ecc2-4838-9e93-8515ee65bca4","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":52,"box":{"x":68,"y":634,"width":840,"height":12}},{"id":"7b2f43ba-b6e9-49f1-9699-ba0c771204ec","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":52,"box":{"x":69,"y":649,"width":823,"height":12}},{"id":"f43c0d51-0d11-4a8e-916b-1de909bf80f3","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":52,"box":{"x":69,"y":665,"width":835,"height":11}},{"id":"2b33a6df-48ba-42c7-9354-c7c513f3ac0e","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":52,"box":{"x":69,"y":680,"width":832,"height":11}},{"id":"0b7e4b0a-3f8b-4300-9226-598fbb30a54d","block_type":"box","text":"security under cer tain circumstances.","page_number":52,"box":{"x":69,"y":695,"width":267,"height":11}},{"id":"e42ff56a-90aa-4ea0-b212-b188574337d7","block_type":"box","text":"A Fund may also invest in synthetic conver tible securities. Synthetic conver tible securities may include either","page_number":52,"box":{"x":101,"y":718,"width":777,"height":11}},{"id":"36a17c05-73e0-48e8-81cf-ed6690c88f7e","block_type":"box","text":"Cash-Settled Conver tibles or Manufactured Conver tibles. “Cash-Settled Conver tibles” are instruments that are","page_number":52,"box":{"x":69,"y":732,"width":789,"height":10}},{"id":"87b42ec8-91fd-4e77-b138-940278bdc6a7","block_type":"box","text":"created by the issuer and have the economic characteristics of traditional conver tible securities but may not actually","page_number":52,"box":{"x":69,"y":748,"width":831,"height":11}},{"id":"5104c077-ff9b-42e0-b274-49872e3380df","block_type":"box","text":"permit conversion into the underlying equity securities in all circumstances. As an example, a private company may","page_number":52,"box":{"x":70,"y":763,"width":819,"height":11}},{"id":"466178ec-4cb2-4021-ba5e-3bfe7c477a7d","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":52,"box":{"x":70,"y":778,"width":833,"height":11}},{"id":"c67b1a98-4a63-4573-ae84-c33779592659","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":52,"box":{"x":70,"y":793,"width":769,"height":11}},{"id":"d886b030-0fe2-4092-abe7-97d7994bf907","block_type":"box","text":"appreciation. “Manufactured Conver tibles” are created by the Manager or another par ty by combining separate","page_number":52,"box":{"x":69,"y":808,"width":791,"height":11}},{"id":"d5926e73-c626-4814-a205-935d6cc439c0","block_type":"box","text":"securities that possess one of the two principal characteristics of a conver tible security,","page_number":52,"box":{"x":69,"y":823,"width":627,"height":11}},{"id":"b941d9e2-2006-4ea3-90d5-0a38b38dd8be","block_type":"box","text":"i.e.","page_number":52,"box":{"x":703,"y":823,"width":20,"height":9}},{"id":"54aee7b7-9bb0-4edf-8c96-4281691daa86","block_type":"box","text":", fixed-income (“fixed","page_number":52,"box":{"x":726,"y":823,"width":151,"height":11}},{"id":"ff13be16-5626-4dbd-b4b1-3fa83ebf0a0f","block_type":"box","text":"income component”) or a right to acquire equity securities (“conver tibility component”). The fixed-income component","page_number":52,"box":{"x":70,"y":838,"width":830,"height":12}},{"id":"eb98f8a1-4890-4188-9213-fc1fb25e48ad","block_type":"box","text":"is achieved by investing in nonconver tible fixed-income securities, such as nonconver tible bonds, preferred stocks","page_number":52,"box":{"x":70,"y":853,"width":814,"height":12}},{"id":"12d6acfc-eeca-4984-b273-3033dd0bc3ed","block_type":"box","text":"and money market instruments. The conver tibility component is achieved by investing in call options, warrants, or","page_number":52,"box":{"x":69,"y":869,"width":811,"height":11}},{"id":"e3eae0b2-bb3b-4684-8e5d-83f0d96b6c8d","block_type":"box","text":"other securities with equity conversion features (“equity features”) granting the holder the right to purchase a","page_number":52,"box":{"x":69,"y":884,"width":779,"height":11}},{"id":"900b4577-b862-49c6-9445-4f4557a2dd86","block_type":"box","text":"II-6","page_number":52,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"d797cd09-6613-43d0-9966-f456dcb736c5","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":52,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"700d6067-93fd-416a-bc26-f823b9af621f","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":53,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"8f6b9f93-c14d-4644-97c3-818d6cd14899","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":53,"box":{"x":69,"y":60,"width":744,"height":11}},{"id":"c648870a-17c0-470e-864b-b293d727452e","block_type":"box","text":"A Manufactured Conver tible differs from traditional conver tible securities in several respects. Unlike a traditional","page_number":53,"box":{"x":101,"y":82,"width":804,"height":11}},{"id":"202f9a85-f61c-4307-b1e7-9b06ff58033f","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":53,"box":{"x":69,"y":98,"width":777,"height":11}},{"id":"c0a016b0-0d0e-4bf6-b36d-1008cace4b61","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":53,"box":{"x":69,"y":113,"width":832,"height":11}},{"id":"4addb505-cabe-41da-acea-c30f4414d042","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":53,"box":{"x":69,"y":128,"width":781,"height":11}},{"id":"f8747c97-7f85-4528-b4b4-a98a11b551ba","block_type":"box","text":"component.","page_number":53,"box":{"x":69,"y":144,"width":82,"height":10}},{"id":"ddd4ccfd-c8d0-4c8e-a7a9-e36cf0da2920","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":53,"box":{"x":102,"y":166,"width":773,"height":11}},{"id":"a15b86fe-c591-467e-bf0e-7755e2710cd1","block_type":"box","text":"conver tible security. Because many corporations have not issued conver tible securities, the Manager may combine a","page_number":53,"box":{"x":69,"y":181,"width":833,"height":11}},{"id":"92dce604-5c9b-45fe-afa9-7346b1da6497","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":53,"box":{"x":68,"y":196,"width":826,"height":11}},{"id":"68773737-0994-4a99-8666-e7d4d00d6404","block_type":"box","text":"to create a synthetic conver tible security otherwise unavailable in the market. The Manager may also combine a","page_number":53,"box":{"x":68,"y":211,"width":800,"height":11}},{"id":"351994af-4595-4cdb-8379-538d2f40f045","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":53,"box":{"x":68,"y":226,"width":817,"height":11}},{"id":"39eaa9d4-68cf-40dd-9ac5-6729b9db1d38","block_type":"box","text":"Manager believes such a Manufactured Conver tible would better promote a Fund’s objective than alternative","page_number":53,"box":{"x":70,"y":241,"width":772,"height":11}},{"id":"ece3ff56-1046-40ee-b6c0-e13b7c5411bc","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":53,"box":{"x":70,"y":256,"width":833,"height":12}},{"id":"1290eede-bfae-4f8b-8ab7-7c62620745b8","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":53,"box":{"x":70,"y":271,"width":790,"height":12}},{"id":"70ed97e4-ffc4-426c-b973-cdf7cd0dc692","block_type":"box","text":"Treasury instrument to create a Manufactured Conver tible with a higher credit profile than a traditional conver tible","page_number":53,"box":{"x":68,"y":286,"width":815,"height":12}},{"id":"830b10b7-56f9-4b35-8d11-36d0ac9a1c55","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":53,"box":{"x":69,"y":302,"width":764,"height":11}},{"id":"24ffdbdf-d59b-4888-aba7-8c593cc960f8","block_type":"box","text":"components may be purchased separately and, upon purchasing the separate securities, “combined” to create a","page_number":53,"box":{"x":69,"y":317,"width":806,"height":11}},{"id":"d95b7892-8be1-4c21-8d72-8d1c8f885197","block_type":"box","text":"Manufactured Conver tible. For example, the Fund may purchase a warrant for eventual inclusion in a Manufactured","page_number":53,"box":{"x":70,"y":332,"width":818,"height":11}},{"id":"c40b401a-bdb0-4cd8-9470-2b161c5e1cfb","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":53,"box":{"x":69,"y":347,"width":824,"height":11}},{"id":"d8174551-f46e-4890-adaf-f9ddffe34999","block_type":"box","text":"favorable market conditions.","page_number":53,"box":{"x":68,"y":362,"width":202,"height":9}},{"id":"7d705c34-74ab-4883-894b-a77f557f7351","block_type":"box","text":"The value of a Manufactured Conver tible may respond to cer tain market fluctuations differently from a traditional","page_number":53,"box":{"x":101,"y":385,"width":805,"height":11}},{"id":"c8ebea94-ab19-4558-88db-63074c159527","block_type":"box","text":"conver tible security with similar characteristics. For example, in the event a Fund created a Manufactured Conver tible","page_number":53,"box":{"x":69,"y":400,"width":837,"height":11}},{"id":"7a166c63-d9be-4731-b5f6-76293d59b886","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":53,"box":{"x":69,"y":415,"width":839,"height":11}},{"id":"f1bab75b-baf5-4d96-8b3b-66ca366823e9","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":53,"box":{"x":69,"y":430,"width":787,"height":11}},{"id":"401e921b-8d94-4f87-8944-7d51544617d5","block_type":"box","text":"periods when Treasury instruments outper form corporate fixed-income securities and underper form during periods","page_number":53,"box":{"x":70,"y":445,"width":815,"height":12}},{"id":"63ece03d-8eb5-4138-8027-70f9334812c4","block_type":"box","text":"when corporate fixed-income securities outper form Treasury instruments.","page_number":53,"box":{"x":68,"y":460,"width":523,"height":12}},{"id":"01288efc-92f6-43aa-a8d9-b4260242cca3","block_type":"box","text":"Corporate Loans.","page_number":53,"box":{"x":102,"y":483,"width":123,"height":11}},{"id":"bf2fd087-e877-4f07-ae2e-35ecd2d70d37","block_type":"box","text":"Cer tain Funds may invest in corporate loans. Corporate loans are generally non-investment","page_number":53,"box":{"x":231,"y":483,"width":647,"height":11}},{"id":"c6e281d8-627f-41af-9f80-6d09e6cf0be0","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":53,"box":{"x":68,"y":498,"width":817,"height":11}},{"id":"6411d597-d899-4ca5-a086-2b0558eb62eb","block_type":"box","text":"fixed and floating rate loans (“Loans”) arranged through private negotiations between a corporate borrower or a","page_number":53,"box":{"x":68,"y":513,"width":794,"height":12}},{"id":"5e0b5da8-d990-444a-b550-0d9c3ff680e0","block_type":"box","text":"foreign sovereign entity and one or more financial institutions or institutional investors (“Lenders”). A Fund may invest","page_number":53,"box":{"x":68,"y":528,"width":841,"height":12}},{"id":"8b28f145-9bd9-4a3d-a036-c804783e8399","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":53,"box":{"x":70,"y":543,"width":818,"height":12}},{"id":"7a2bc08f-49a2-4670-893e-77f71be3eefa","block_type":"box","text":"from third par ties (“Assignments”). A Fund considers these investments to be investments in debt securities for","page_number":53,"box":{"x":68,"y":559,"width":801,"height":11}},{"id":"734aaf6b-359e-4070-85ad-7a484199715d","block_type":"box","text":"purposes of its investment policies. Par ticipations typically will result in the Fund having a contractual relationship","page_number":53,"box":{"x":70,"y":574,"width":811,"height":11}},{"id":"86339034-d943-4733-810b-e014db4de96c","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":53,"box":{"x":69,"y":589,"width":833,"height":11}},{"id":"1a2b0739-d130-47c6-b10e-b833ae1d56c8","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":53,"box":{"x":69,"y":604,"width":817,"height":11}},{"id":"db2c4cb3-6def-4a12-91be-fe2f45bbf263","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":53,"box":{"x":68,"y":619,"width":836,"height":11}},{"id":"2d36a588-4a2a-4d2b-a0f5-d65ea0d3859b","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":53,"box":{"x":69,"y":634,"width":833,"height":12}},{"id":"45eb36f5-27f5-49ef-ac90-b59ed3cb9d36","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":53,"box":{"x":69,"y":649,"width":837,"height":12}},{"id":"c1f071a8-169c-4f5b-a453-5a112d181d64","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":53,"box":{"x":70,"y":664,"width":809,"height":11}},{"id":"0c81e265-77d6-486f-b771-efe5648014e7","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":53,"box":{"x":68,"y":680,"width":838,"height":11}},{"id":"aff5805c-53ec-4f83-bbd8-196f3f74d49f","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":53,"box":{"x":68,"y":695,"width":772,"height":11}},{"id":"232e10d6-d22b-4f4f-8e5b-17556cb0d57e","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":53,"box":{"x":69,"y":710,"width":837,"height":11}},{"id":"680f289e-daa7-4162-a2a0-bd32c87c6a8f","block_type":"box","text":"determined by the Fund’s manager to be creditwor thy. When the Fund purchases Assignments from Lenders, the","page_number":53,"box":{"x":69,"y":725,"width":804,"height":11}},{"id":"c2a63e6e-a1fc-445b-a143-8fd4cba96346","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":53,"box":{"x":70,"y":740,"width":834,"height":11}},{"id":"bc579257-96fb-499d-aa74-e70b287c6e8a","block_type":"box","text":"risk. The Funds may enter into Par ticipations and Assignments on a forward commitment or “when-issued” basis,","page_number":53,"box":{"x":69,"y":755,"width":809,"height":11}},{"id":"50093909-914c-4e34-9787-467a12f5782e","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":53,"box":{"x":68,"y":770,"width":764,"height":12}},{"id":"b1a653ec-f53c-40ed-a1b3-511194f14dfc","block_type":"box","text":"information on forward commitments and when-issued securities, see “When-Issued Securities, Delayed Delivery","page_number":53,"box":{"x":70,"y":785,"width":805,"height":12}},{"id":"25778bfe-ab66-4b64-b844-65c7c6b2a3e5","block_type":"box","text":"Securities and Forward Commitments” below.","page_number":53,"box":{"x":69,"y":801,"width":324,"height":9}},{"id":"ae18cc0f-28af-4552-91cb-b6454df77ef7","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":53,"box":{"x":101,"y":823,"width":782,"height":12}},{"id":"d1c40b4a-ddfa-4755-94bc-68a2255aea1b","block_type":"box","text":"instruments may lack sufficient liquidity, and therefore the Fund anticipates that in such cases such instruments","page_number":53,"box":{"x":70,"y":838,"width":803,"height":11}},{"id":"af8f5513-45b4-467a-a169-01f58ec404a1","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":53,"box":{"x":69,"y":853,"width":809,"height":12}},{"id":"2beb9fd0-1541-444c-bc5b-5018de212cb5","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":53,"box":{"x":69,"y":869,"width":795,"height":11}},{"id":"05b9706e-37f6-4059-bf78-64e4ac38eb6a","block_type":"box","text":"Assignments or Par ticipations in response to a specific economic event, such as deterioration in the creditwor thiness","page_number":53,"box":{"x":68,"y":884,"width":841,"height":11}},{"id":"974191c8-d279-4a3e-bbb4-e257b0dc52a0","block_type":"box","text":"of the borrower.","page_number":53,"box":{"x":69,"y":899,"width":111,"height":9}},{"id":"7bc7a12c-e1bb-41bf-a5b5-ea561e463d87","block_type":"box","text":"II-7","page_number":53,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"960628cc-e87f-4732-87d2-defde21a2c2c","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":53,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"73460749-f317-4a58-a943-7535d4e85383","block_type":"box","text":"Leading financial institutions often act as agent for a broader group of Lenders, generally referred to as a","page_number":54,"box":{"x":102,"y":45,"width":750,"height":11}},{"id":"28328b5c-7588-4f27-adaf-787b56b75760","block_type":"box","text":"syndicate. The syndicate’s agent arranges the loans, holds collateral and accepts payments of principal and interest.","page_number":54,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"c7cae5e8-5a32-4ee7-88cc-182be22fa927","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":54,"box":{"x":70,"y":75,"width":816,"height":11}},{"id":"d6c4471d-62e2-4ad2-9cb0-159d32548ee2","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":54,"box":{"x":101,"y":98,"width":740,"height":11}},{"id":"37356fcc-8e16-405a-8e7d-7d14d1086241","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":54,"box":{"x":69,"y":113,"width":827,"height":11}},{"id":"5b454194-33e8-41ab-8b40-4a59c2f17980","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":54,"box":{"x":70,"y":128,"width":802,"height":11}},{"id":"8296da59-b747-4e85-ac41-0100c2eb2ce1","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":54,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"5f730bb6-5e55-4754-b709-ad6bd02f8d32","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":54,"box":{"x":70,"y":158,"width":827,"height":11}},{"id":"cf16f9da-0a7c-44ab-b142-fa65fa6504ee","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":54,"box":{"x":69,"y":173,"width":777,"height":11}},{"id":"381354b7-9e5d-46be-a5ba-4caaaf783032","block_type":"box","text":"investment and may not receive interest during the delay.","page_number":54,"box":{"x":70,"y":188,"width":406,"height":12}},{"id":"66c30efc-4836-40d8-89b8-7e0f5deec55f","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":54,"box":{"x":101,"y":211,"width":752,"height":11}},{"id":"acfd0caa-c049-4fdf-8973-818f0b7bda10","block_type":"box","text":"corporate loans may not be readily available to make additional investments or to meet a Fund’s redemption","page_number":54,"box":{"x":69,"y":226,"width":773,"height":11}},{"id":"b84e562f-1603-443d-8c59-4995d948a0d9","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":54,"box":{"x":69,"y":241,"width":824,"height":11}},{"id":"e7ee3aeb-4ca0-4cd3-b08b-002597cd205c","block_type":"box","text":"additional cash, sell investments or temporarily borrow from banks and other lenders.","page_number":54,"box":{"x":69,"y":256,"width":610,"height":11}},{"id":"3121b07e-4231-4d30-b4df-c158bd9f5a49","block_type":"box","text":"In cer tain circumstances, Loans may not be deemed to be securities under cer tain federal securities laws.","page_number":54,"box":{"x":102,"y":279,"width":759,"height":11}},{"id":"a6d86538-a085-4bb7-8560-a0dc4fbc2ca2","block_type":"box","text":"Therefore, in the event of fraud or misrepresentation by a borrower or an arranger, Lenders and purchasers of","page_number":54,"box":{"x":68,"y":294,"width":784,"height":11}},{"id":"9df1686e-906d-46f0-84d4-f9cfa36377c6","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":54,"box":{"x":70,"y":309,"width":772,"height":11}},{"id":"c68f166e-ee13-40fa-be64-eddade589cc7","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":54,"box":{"x":69,"y":324,"width":827,"height":12}},{"id":"5c00e64b-7086-43a3-b808-4371d791121e","block_type":"box","text":"rely on the contractual provisions in the Loan agreement itself and common-law fraud protections under applicable","page_number":54,"box":{"x":69,"y":339,"width":815,"height":12}},{"id":"986984c0-a194-4b54-aea2-df91a008aa7d","block_type":"box","text":"state law.","page_number":54,"box":{"x":69,"y":355,"width":67,"height":9}},{"id":"335990df-7a81-4bf9-90a8-ba0748b8ff42","block_type":"box","text":"Direct Lending.","page_number":54,"box":{"x":102,"y":377,"width":105,"height":12}},{"id":"432d17cf-4228-4422-8e26-62ab612b0b88","block_type":"box","text":"The Fund may act as the originator for direct loans and engage in direct lending. Direct loans","page_number":54,"box":{"x":213,"y":377,"width":660,"height":12}},{"id":"df2d7a6b-9968-485e-b003-c02f3dc42513","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":54,"box":{"x":69,"y":393,"width":817,"height":11}},{"id":"040af317-3d9d-457b-ab08-708746b024f0","block_type":"box","text":"financing to commercial borrowers directly or through companies acquired (or created) and owned by or otherwise","page_number":54,"box":{"x":68,"y":407,"width":811,"height":12}},{"id":"b122392b-04ec-48c0-a0ba-3c99a7b40c56","block_type":"box","text":"affiliated with the Fund. The terms of the direct loans are negotiated with borrowers in private transactions.","page_number":54,"box":{"x":69,"y":423,"width":764,"height":11}},{"id":"83f4c76f-17e6-40b9-9f47-a9fdb5aac20f","block_type":"box","text":"Fur thermore, a direct loan may be secured or unsecured.","page_number":54,"box":{"x":70,"y":438,"width":405,"height":11}},{"id":"34284cef-9bae-448d-b149-d33a240f7f1e","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":54,"box":{"x":102,"y":460,"width":750,"height":12}},{"id":"cd2ba3e7-86f2-4709-a89f-c915dda6044e","block_type":"box","text":"borrower and/or any collateral for payment of interest and repayment of principal. The risks associated with direct","page_number":54,"box":{"x":69,"y":475,"width":813,"height":12}},{"id":"a0e446bb-b1ff-4b4b-8b3f-49b2623681f4","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":54,"box":{"x":70,"y":491,"width":838,"height":11}},{"id":"00a4d658-a560-471e-9a45-23b85268a1ed","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":54,"box":{"x":70,"y":506,"width":818,"height":11}},{"id":"a12ecadf-7e5e-4d5c-9713-03f44baf35ae","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":54,"box":{"x":69,"y":521,"width":798,"height":11}},{"id":"b66a79ec-a524-4e70-a969-6464f3ff7a67","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":54,"box":{"x":69,"y":536,"width":825,"height":11}},{"id":"0facca53-7239-45ca-a78c-99965acc7309","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":54,"box":{"x":70,"y":551,"width":807,"height":11}},{"id":"0285e2ab-9e30-4984-bcc6-6f07bfa0aa7c","block_type":"box","text":"direct loan and/or to value the direct loan.","page_number":54,"box":{"x":69,"y":566,"width":301,"height":11}},{"id":"419ba3aa-9d40-4a51-9622-bf040bf356a3","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":54,"box":{"x":101,"y":589,"width":762,"height":11}},{"id":"45749b52-e559-4807-857e-1582518edcb5","block_type":"box","text":"originate loans on advantageous terms. In originating loans, the Fund will compete with a broad spectrum of lenders.","page_number":54,"box":{"x":69,"y":604,"width":833,"height":11}},{"id":"e8b9eef2-4c68-49de-99e4-4bfc3bec9880","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":54,"box":{"x":70,"y":619,"width":836,"height":11}},{"id":"f5b54f95-bda3-4fd6-a9fc-eaad9e18bdb4","block_type":"box","text":"such loans, which could reduce Fund per formance.","page_number":54,"box":{"x":69,"y":634,"width":362,"height":11}},{"id":"353179fc-1291-499d-a09e-319a3398a2fd","block_type":"box","text":"As par t of its lending activities, the Fund may originate loans to companies that are experiencing significant","page_number":54,"box":{"x":101,"y":657,"width":767,"height":11}},{"id":"60df857a-7447-4f68-aa5c-69b684d0af0b","block_type":"box","text":"financial or business difficulties, including companies involved in bankruptcy or other reorganization and liquidation","page_number":54,"box":{"x":68,"y":672,"width":821,"height":11}},{"id":"27fc71c5-97e6-40d3-8a11-e9bae5ccaab7","block_type":"box","text":"proceedings. Although the terms of such financing may result in significant financial returns to the Fund, they involve","page_number":54,"box":{"x":70,"y":687,"width":830,"height":11}},{"id":"2582159c-94fe-43a9-94cb-63b1e949aa66","block_type":"box","text":"a substantial degree of risk. The level of analytical sophistication, both financial and legal, necessary for successful","page_number":54,"box":{"x":69,"y":702,"width":826,"height":12}},{"id":"caa57115-c774-466c-a505-1345e8fcd239","block_type":"box","text":"financing to companies experiencing significant business and financial difficulties is unusually high.","page_number":54,"box":{"x":68,"y":717,"width":709,"height":12}},{"id":"14311052-1a89-4d93-b4af-dc9ac2afd55b","block_type":"box","text":"Credit Linked Securities.","page_number":54,"box":{"x":102,"y":740,"width":179,"height":9}},{"id":"37ab8210-d131-4162-83a4-06e6cb9f0bc7","block_type":"box","text":"Among the income producing securities in which a Fund may invest are credit linked","page_number":54,"box":{"x":287,"y":740,"width":596,"height":11}},{"id":"0b2d2188-dbf4-402e-8a57-e1d46442e924","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":54,"box":{"x":69,"y":755,"width":837,"height":11}},{"id":"56fe9b4f-d4ca-4fe4-a3d0-20f1f06fedf0","block_type":"box","text":"or basket of derivative instruments, such as credit default swaps, interest rate swaps and other securities, in order","page_number":54,"box":{"x":69,"y":770,"width":823,"height":11}},{"id":"1cb71cb1-9d62-4e09-afb7-91a3b9186a5f","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":54,"box":{"x":68,"y":785,"width":827,"height":12}},{"id":"ddadd2b0-3c7c-4983-a09b-f852ca273c98","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":54,"box":{"x":69,"y":801,"width":795,"height":11}},{"id":"bd2fa01f-9e41-4708-8720-46476c41a3fa","block_type":"box","text":"traditional income producing securities are not available.","page_number":54,"box":{"x":68,"y":816,"width":404,"height":11}},{"id":"10213753-daa6-4bf0-88f8-8be53ffc5d34","block_type":"box","text":"Like an investment in a bond, investments in these credit linked securities represent the right to receive periodic","page_number":54,"box":{"x":102,"y":839,"width":804,"height":11}},{"id":"a90ad3df-8606-4f25-8ec6-ab1036a42be6","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":54,"box":{"x":70,"y":853,"width":780,"height":12}},{"id":"8a3ed9ab-2790-4252-b5ff-4f2d3550f12a","block_type":"box","text":"However, these payments are conditioned on the issuer’s receipt of payments from, and the issuer’s potential","page_number":54,"box":{"x":102,"y":876,"width":785,"height":11}},{"id":"45870586-aec4-4dab-abb5-559bc8248f00","block_type":"box","text":"obligations to, the counterpar ties to the derivative instruments and other securities in which the issuer invests. For","page_number":54,"box":{"x":69,"y":891,"width":821,"height":12}},{"id":"ef26cf52-d32e-481f-bdb7-df3bc60df964","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":54,"box":{"x":70,"y":906,"width":806,"height":12}},{"id":"dd163576-9676-4444-ac17-8a3ae8977953","block_type":"box","text":"II-8","page_number":54,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"2f0ca94d-31a3-4d49-88cb-be10c9051469","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":54,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a9cd4a98-a01e-4d35-b8c9-fc1d065f45a1","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":55,"box":{"x":70,"y":45,"width":819,"height":11}},{"id":"a69a29e1-7f28-4936-95e4-668dd2f25f08","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":55,"box":{"x":69,"y":60,"width":826,"height":11}},{"id":"03b9993f-44b5-4bab-a454-6887f5b80ef8","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":55,"box":{"x":68,"y":75,"width":807,"height":11}},{"id":"3cc17048-3c29-4b3b-8a9f-5f9ea7c5f7ae","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":55,"box":{"x":69,"y":90,"width":783,"height":11}},{"id":"711ba64f-f8b1-4ba9-8e3a-b4c3b0885c52","block_type":"box","text":"investments in these instruments are indirectly subject to the risks associated with derivative instruments, including,","page_number":55,"box":{"x":70,"y":105,"width":833,"height":11}},{"id":"e472bce9-a356-4e0f-b300-cbe512e380bb","block_type":"box","text":"among others, credit risk, default or similar event risk, counterpar ty risk, interest rate risk, leverage risk and","page_number":55,"box":{"x":69,"y":120,"width":771,"height":12}},{"id":"a4eb7dfb-b356-4228-aa72-608d31464365","block_type":"box","text":"management risk. It is also expected that the securities will be exempt from registration under the Securities Act.","page_number":55,"box":{"x":69,"y":135,"width":808,"height":12}},{"id":"6e4bb621-9483-46e1-96c6-eb4c8723d081","block_type":"box","text":"Accordingly, there may be no established trading market for the securities and they may constitute illiquid","page_number":55,"box":{"x":68,"y":150,"width":752,"height":12}},{"id":"2ac840cd-a044-436f-8cde-cd79e7761b64","block_type":"box","text":"investments.","page_number":55,"box":{"x":70,"y":166,"width":89,"height":9}},{"id":"34690f76-f2d3-44fa-9762-120aa653b747","block_type":"box","text":"Debt Securities.","page_number":55,"box":{"x":102,"y":188,"width":116,"height":9}},{"id":"23bac3f8-2baa-4f1a-b563-95205d6de07f","block_type":"box","text":"Debt securities, such as bonds, involve credit risk. This is the risk that the issuer will not make","page_number":55,"box":{"x":225,"y":188,"width":677,"height":11}},{"id":"11a8ed02-fb7e-4883-8bc4-bc9fa032f14a","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":55,"box":{"x":68,"y":203,"width":839,"height":12}},{"id":"3dd228a5-cfda-4e87-90b9-8495454b3dff","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":55,"box":{"x":68,"y":218,"width":787,"height":12}},{"id":"44331936-c614-4495-9c86-ae194ae01775","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":55,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"1f623441-7963-4e67-845d-21ae2e532566","block_type":"box","text":"a Fund limits its debt investments to U.S. Government Securities.","page_number":55,"box":{"x":69,"y":249,"width":466,"height":9}},{"id":"1d646697-086c-48c5-b9b3-d051c7653f9f","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":55,"box":{"x":101,"y":271,"width":784,"height":12}},{"id":"baf50eb3-349e-492f-8577-4e71edda4c1c","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":55,"box":{"x":68,"y":286,"width":792,"height":12}},{"id":"f155a958-9f4e-4910-8a87-5b6f6124f894","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":55,"box":{"x":70,"y":302,"width":806,"height":11}},{"id":"cff964fc-a23c-42f9-8fb2-a68e0d9abf84","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":55,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"7b744a98-2863-4fd8-a53d-c0c4243a24e6","block_type":"box","text":"rates than will the market price of shor ter-term debt securities.","page_number":55,"box":{"x":69,"y":332,"width":448,"height":11}},{"id":"85737641-e31d-4ab3-b50a-db767138e9ba","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":55,"box":{"x":102,"y":355,"width":798,"height":11}},{"id":"8dadf763-c59e-43e4-8b91-e1c500ace9e3","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":55,"box":{"x":69,"y":370,"width":813,"height":11}},{"id":"0cdc4633-4ef1-42fe-9b9d-33f72c563a95","block_type":"box","text":"these fixed-income securities, especially mor tgage-related securities, making them more sensitive to changes in","page_number":55,"box":{"x":68,"y":385,"width":801,"height":11}},{"id":"f8a19a57-b4a4-4703-99f1-75181c98ef9e","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":55,"box":{"x":70,"y":400,"width":806,"height":11}},{"id":"08f278e9-bcb8-4445-8f30-ed0e386c80a6","block_type":"box","text":"lose value. This is known as extension risk.","page_number":55,"box":{"x":70,"y":415,"width":307,"height":9}},{"id":"27e9e79d-183d-4694-8b41-021a275cbadd","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":55,"box":{"x":101,"y":438,"width":778,"height":11}},{"id":"0e60c1c0-c271-4b79-b88f-27258a5efa2f","block_type":"box","text":"interest rates. Fixed-income securities with longer maturities, which tend to produce higher yields, are subject to","page_number":55,"box":{"x":70,"y":453,"width":798,"height":11}},{"id":"a8869a1d-90eb-4d29-94ee-21d51bb16a52","block_type":"box","text":"potentially greater capital appreciation and depreciation than securities with shor ter maturities. The Funds are not","page_number":55,"box":{"x":70,"y":468,"width":812,"height":11}},{"id":"73c67f83-c090-4eb0-9f72-2b642a761753","block_type":"box","text":"restricted to any maximum or minimum time to maturity in purchasing individual por tfolio securities, and the average","page_number":55,"box":{"x":69,"y":483,"width":831,"height":11}},{"id":"f954570b-69ec-4dec-a60e-cda5da4d5d10","block_type":"box","text":"maturity of a Fund’s assets will vary.","page_number":55,"box":{"x":69,"y":498,"width":259,"height":11}},{"id":"29f8ecbb-1151-4773-b63b-a20386476109","block_type":"box","text":"Floating and Variable Rate Securities","page_number":55,"box":{"x":102,"y":521,"width":260,"height":11}},{"id":"001dbf72-b45e-41e9-857d-7a1a96a3f417","block_type":"box","text":". Cer tain Funds may invest in debt instruments that pay a variable coupon","page_number":55,"box":{"x":364,"y":521,"width":526,"height":11}},{"id":"cb7e710a-38d6-470a-8fa4-17533c2d7539","block_type":"box","text":"rate. Securities with floating or variable interest rates can be less sensitive to interest rate changes than securities","page_number":55,"box":{"x":69,"y":536,"width":821,"height":11}},{"id":"68340516-72fe-407b-a6d2-db65a8bdadc6","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":55,"box":{"x":68,"y":551,"width":834,"height":11}},{"id":"98f2c060-c200-4df7-99fe-4d702368a9cf","block_type":"box","text":"rates in general. Conversely, floating rate securities will not generally increase in value if interest rates decline. The","page_number":55,"box":{"x":69,"y":566,"width":820,"height":11}},{"id":"aa01e2bd-b319-4160-8fc8-f487ecb8e570","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":55,"box":{"x":70,"y":581,"width":838,"height":12}},{"id":"2b6d806c-42fb-4430-90bb-c4e23a6a91fe","block_type":"box","text":"the investments. Benchmark interest rates used for floating and variable rate securities may not accurately track","page_number":55,"box":{"x":68,"y":596,"width":804,"height":12}},{"id":"476b0c74-cd76-4ac5-92a8-67391e3b05b7","block_type":"box","text":"market interest rates.","page_number":55,"box":{"x":69,"y":612,"width":153,"height":9}},{"id":"cc6c0057-37db-4f95-8ee5-846871ba4ce9","block_type":"box","text":"Inflation-Indexed Bonds.","page_number":55,"box":{"x":102,"y":634,"width":169,"height":9}},{"id":"7f09b554-14f5-4fde-a639-d7a11a55d700","block_type":"box","text":"Cer tain Funds may invest in inflation-indexed bonds, which are fixed-income securities or","page_number":55,"box":{"x":278,"y":634,"width":632,"height":11}},{"id":"6b5726cf-6b73-4c3e-b61f-db36cfbbcb20","block_type":"box","text":"other instruments whose principal value is periodically adjusted according to the rate of inflation. Two structures are","page_number":55,"box":{"x":69,"y":649,"width":828,"height":12}},{"id":"736bcf6d-ce95-4bb7-935b-197904f83671","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":55,"box":{"x":69,"y":664,"width":827,"height":12}},{"id":"626bf3e3-b894-41ff-a6b8-33838ad6e4dc","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":55,"box":{"x":68,"y":680,"width":810,"height":11}},{"id":"85772249-4356-4863-942c-cf3ac0cfd776","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":55,"box":{"x":102,"y":702,"width":792,"height":12}},{"id":"fe901257-1178-4462-bc0a-e9509173f4dd","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":55,"box":{"x":70,"y":717,"width":833,"height":12}},{"id":"c00a14c5-c32c-4d30-bba0-96ee6e0eb78e","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":55,"box":{"x":69,"y":732,"width":810,"height":12}},{"id":"63e6c452-57e8-452d-89e5-3fb155f9913f","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":55,"box":{"x":70,"y":747,"width":814,"height":12}},{"id":"c3867288-16ee-43fe-913c-41e94138e62b","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":55,"box":{"x":69,"y":762,"width":816,"height":12}},{"id":"66842b82-9146-4bd1-affd-346c685acc06","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":55,"box":{"x":69,"y":777,"width":828,"height":12}},{"id":"9695541e-6cb1-4947-bd01-a8922b0499dd","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":55,"box":{"x":69,"y":792,"width":828,"height":12}},{"id":"da2da1f2-0bd7-4ef2-b4d2-2c4b531695d8","block_type":"box","text":"and the second semi-annual interest payment would be $15.45 ($1,030 times 1.5%).","page_number":55,"box":{"x":69,"y":807,"width":610,"height":12}},{"id":"06fe01e0-8158-4278-9355-b5a6e65f325d","block_type":"box","text":"If the periodic adjustment rate measuring inflation falls, the principal value of inflation-indexed bonds will be","page_number":55,"box":{"x":102,"y":831,"width":767,"height":11}},{"id":"27375e16-8141-445b-88aa-05e01d4fec11","block_type":"box","text":"adjusted downward, and, consequently, the interest payable on these securities (calculated with respect to a smaller","page_number":55,"box":{"x":69,"y":846,"width":833,"height":11}},{"id":"8b701ec9-1386-4766-8e43-d3fcdb2ca899","block_type":"box","text":"principal amount) will be reduced. Repayment of the original bond principal upon maturity (as adjusted for inflation) is","page_number":55,"box":{"x":70,"y":861,"width":834,"height":11}},{"id":"39098db7-a8e7-4a85-a3b5-a88f542ce3e3","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":55,"box":{"x":68,"y":876,"width":795,"height":11}},{"id":"cb87ff27-2a3b-4318-92ec-fe9b2d64cc83","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":55,"box":{"x":69,"y":891,"width":788,"height":12}},{"id":"e0f81a2e-205a-4a1a-96ef-52063ad18dc8","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":55,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"9e3c0225-b409-4d5b-8d62-9f472c4258a9","block_type":"box","text":"II-9","page_number":55,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"85d5de4d-96a9-438f-9b57-0f38555455cb","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":55,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d6ab9ee2-87f5-49a6-9175-a51be6ef4332","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":56,"box":{"x":68,"y":45,"width":821,"height":11}},{"id":"1d20e4f6-4244-4633-aafa-a5bb2039f3d6","block_type":"box","text":"Fund purchases inflation-indexed bonds offered by foreign issuers, the rate of inflation measured by the foreign","page_number":56,"box":{"x":70,"y":60,"width":792,"height":11}},{"id":"19145e35-80fc-4b1b-856c-48e8a70a0ad7","block_type":"box","text":"inflation index may not be correlated to the rate of inflation in the United States.","page_number":56,"box":{"x":70,"y":75,"width":570,"height":11}},{"id":"4ebcadc1-d74e-4700-83f8-4d3ebe048417","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":56,"box":{"x":101,"y":98,"width":780,"height":11}},{"id":"b7b8c83b-8806-433f-8daf-1e2595e47c2c","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":56,"box":{"x":70,"y":113,"width":831,"height":11}},{"id":"ca6d793e-757a-41e3-a033-265d88a3cae2","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":56,"box":{"x":70,"y":128,"width":808,"height":11}},{"id":"aabb6563-bf89-46b5-9598-b22eacba9259","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":56,"box":{"x":70,"y":143,"width":796,"height":10}},{"id":"f3c5a3f1-fb64-44d8-9813-251a12c26dd5","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":56,"box":{"x":70,"y":158,"width":805,"height":11}},{"id":"e64a78a6-ac0a-4f8c-bfc2-28a9bbd42f1b","block_type":"box","text":"assurance, however, that the value of inflation-indexed bonds will be directly correlated to changes in interest rates.","page_number":56,"box":{"x":69,"y":173,"width":824,"height":11}},{"id":"bbd215dd-7e1e-418c-9d07-1e6c871886d3","block_type":"box","text":"While these securities are expected to be protected from long-term inflationary trends, shor t-term increases in","page_number":56,"box":{"x":101,"y":196,"width":788,"height":11}},{"id":"414c16a4-3497-4f13-9a13-a89d095d72aa","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":56,"box":{"x":70,"y":211,"width":825,"height":11}},{"id":"2e4145e4-1ca5-49a0-b476-f23bc8f7e851","block_type":"box","text":"changes in currency exchange rates), investors in these securities may not be protected to the extent that the","page_number":56,"box":{"x":69,"y":226,"width":784,"height":11}},{"id":"b3876426-f425-473e-ba70-0fcab4cac12d","block_type":"box","text":"increase is not reflected in the bond’s inflation measure.","page_number":56,"box":{"x":70,"y":241,"width":403,"height":9}},{"id":"f8fa1145-1053-47fe-b8b0-870f2c36bed9","block_type":"box","text":"In general, the measure used to determine the periodic adjustment of U.S. inflation-indexed bonds is the","page_number":56,"box":{"x":102,"y":264,"width":746,"height":11}},{"id":"9f6254db-c39a-4d7a-977f-387a52256af6","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":56,"box":{"x":69,"y":279,"width":786,"height":11}},{"id":"98c2bbc6-c777-4792-828e-ff2dd000c752","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":56,"box":{"x":69,"y":294,"width":810,"height":11}},{"id":"86801704-e8e5-479b-8808-ba3076b2fb9c","block_type":"box","text":"food, transpor tation and energy. Inflation-indexed bonds issued by a foreign government are generally adjusted to","page_number":56,"box":{"x":68,"y":309,"width":809,"height":11}},{"id":"555f1c49-bd0e-42e0-a170-46988e96c54e","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":56,"box":{"x":69,"y":324,"width":830,"height":12}},{"id":"adebc06a-569b-4776-b955-5807b893843a","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":56,"box":{"x":68,"y":339,"width":833,"height":12}},{"id":"ddbf0a63-bf85-4fb2-b717-4ff45fa331c7","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":56,"box":{"x":68,"y":355,"width":840,"height":11}},{"id":"26c4dd70-e9e8-4773-952a-380317e1b0d7","block_type":"box","text":"United States.","page_number":56,"box":{"x":70,"y":370,"width":99,"height":9}},{"id":"9e174ce1-a520-45b3-81e5-18bff35b4068","block_type":"box","text":"Any increase in the principal amount of an inflation-indexed bond will be considered taxable ordinary income,","page_number":56,"box":{"x":101,"y":392,"width":774,"height":12}},{"id":"52c48358-c078-412a-9399-010434789a61","block_type":"box","text":"even though investors do not receive their principal until maturity.","page_number":56,"box":{"x":69,"y":408,"width":464,"height":11}},{"id":"cb5dce59-0a7f-403d-97c2-20acd3fd98da","block_type":"box","text":"Investment Grade Debt Obligations.","page_number":56,"box":{"x":102,"y":430,"width":252,"height":11}},{"id":"f76eb6af-e2ba-4832-aff9-a3766809ab75","block_type":"box","text":"Cer tain Funds may invest in “investment grade securities,” which are","page_number":56,"box":{"x":360,"y":430,"width":493,"height":11}},{"id":"b7486c32-566f-45fc-b4cb-1b2abac136a0","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":56,"box":{"x":69,"y":445,"width":823,"height":12}},{"id":"28cb1239-ac92-4ba4-9214-f58539251e69","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":56,"box":{"x":70,"y":460,"width":815,"height":12}},{"id":"c793f7d9-8a5b-41e0-9260-a41017e69249","block_type":"box","text":"debt obligations rated in the lowest of the top four ratings (","page_number":56,"box":{"x":69,"y":475,"width":420,"height":12}},{"id":"60d72b96-3391-4474-8aa3-7ab6652dc46d","block_type":"box","text":"i.e.","page_number":56,"box":{"x":492,"y":476,"width":20,"height":8}},{"id":"c4c6f90e-3fbe-4434-91ad-637538186e32","block_type":"box","text":", “Baa” by Moody’s or “BBB” by S&P) are considered","page_number":56,"box":{"x":514,"y":476,"width":377,"height":11}},{"id":"7dd61a32-63fe-4ab0-837c-be0f750d6651","block_type":"box","text":"to have some speculative characteristics and are more sensitive to economic change than higher rated securities. If","page_number":56,"box":{"x":68,"y":491,"width":829,"height":11}},{"id":"6dec4e1a-b701-4d44-a6d8-7ebe36be4057","block_type":"box","text":"an investment grade security of a Fund is subsequently downgraded below investment grade, the Fund’s Manager will","page_number":56,"box":{"x":69,"y":506,"width":836,"height":11}},{"id":"12dc2747-c88d-4bcd-bca6-13d8946afc28","block_type":"box","text":"consider such an event in determining whether the Fund should continue to hold the security. Subject to its","page_number":56,"box":{"x":69,"y":521,"width":763,"height":11}},{"id":"16ca5248-fcb5-4e8c-bf3b-ef1a04e0f5ff","block_type":"box","text":"investment strategies, there is no limit on the amount of such downgraded securities a Fund may hold.","page_number":56,"box":{"x":70,"y":536,"width":731,"height":11}},{"id":"6a5f3589-d99f-4617-bfcb-01602b0de214","block_type":"box","text":"See Appendix A to this SAI for a description of applicable securities ratings.","page_number":56,"box":{"x":102,"y":559,"width":536,"height":11}},{"id":"0ea5a2d4-db5e-42d6-bb71-67c336ff9c4e","block_type":"box","text":"High Yield Investments (“Junk Bonds”).","page_number":56,"box":{"x":102,"y":582,"width":278,"height":11}},{"id":"351023f1-9160-4d1f-ad8c-a2ec9d75b073","block_type":"box","text":"Non-investment grade or “high yield” fixed-income or conver tible securities commonly known to investors as","page_number":56,"box":{"x":102,"y":604,"width":767,"height":11}},{"id":"330c8991-3a52-48b9-ad60-e6eaf22bea1c","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":56,"box":{"x":70,"y":619,"width":834,"height":11}},{"id":"8cb78a40-498e-43a6-9437-822997940aa6","block_type":"box","text":"that Fund management believes are of comparable quality. While generally providing greater income and oppor tunity","page_number":56,"box":{"x":68,"y":634,"width":828,"height":12}},{"id":"c04ad5da-271a-4467-9249-de2090e8f310","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":56,"box":{"x":68,"y":649,"width":841,"height":12}},{"id":"ed9ddc8f-8ee8-4dff-9d00-5db30d05d31c","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":56,"box":{"x":69,"y":664,"width":827,"height":12}},{"id":"4407b116-7906-416b-8ca7-5816478c4772","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":56,"box":{"x":70,"y":680,"width":830,"height":11}},{"id":"a83c380d-8dae-4b14-b628-f12cd8ad9ae9","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":56,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"65e31a63-ffd5-4103-97f5-a0e067e30e8c","block_type":"box","text":"ratings may from time to time change, positively or negatively, to reflect developments regarding the issuer’s financial","page_number":56,"box":{"x":69,"y":710,"width":838,"height":11}},{"id":"bb7bad8d-005a-4963-afa2-2d50c82f0c7e","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":56,"box":{"x":69,"y":725,"width":817,"height":11}},{"id":"e0813b63-9939-4f33-83be-d299345839a4","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":56,"box":{"x":69,"y":740,"width":837,"height":11}},{"id":"744ddc0d-47c6-4a0f-a0d1-6ce5597d609d","block_type":"box","text":"risk than higher rated securities.","page_number":56,"box":{"x":69,"y":755,"width":230,"height":11}},{"id":"936cb7e0-20c6-4517-948b-ec877e8fe474","block_type":"box","text":"The major risks in junk bond investments include the following:","page_number":56,"box":{"x":101,"y":778,"width":447,"height":11}},{"id":"c5eb643f-cc84-4ebd-9499-85aafeba4748","block_type":"box","text":"•","page_number":56,"box":{"x":69,"y":801,"width":6,"height":4}},{"id":"b6c19252-c12f-44e3-986f-031ac025d1c9","block_type":"box","text":"Junk bonds may be issued by less creditwor thy companies. These securities are vulnerable to adverse changes","page_number":56,"box":{"x":101,"y":798,"width":796,"height":11}},{"id":"0e5fbb48-311e-4ca4-a540-64cb3e6bcbb4","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":56,"box":{"x":102,"y":813,"width":792,"height":11}},{"id":"539eeb67-fd48-4c20-a307-c469ce64b25b","block_type":"box","text":"interest or principal payment obligations because of an economic downturn, specific issuer developments or the","page_number":56,"box":{"x":102,"y":828,"width":799,"height":12}},{"id":"27170be8-2d7a-4e66-86e1-4540e35e362d","block_type":"box","text":"unavailability of additional financing.","page_number":56,"box":{"x":102,"y":843,"width":256,"height":12}},{"id":"9a0dcb65-1fd1-41bb-97d4-c0b230dce032","block_type":"box","text":"•","page_number":56,"box":{"x":69,"y":866,"width":6,"height":5}},{"id":"aa024a73-6832-418e-9bbd-5f98c24534ad","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":56,"box":{"x":101,"y":863,"width":797,"height":12}},{"id":"5331ea5a-27ad-4b62-a756-98c4322e4ab7","block_type":"box","text":"investment grade bonds. If the issuer experiences financial stress, it may be unable to meet its debt obligations.","page_number":56,"box":{"x":102,"y":879,"width":804,"height":11}},{"id":"3580b3c2-416d-492b-83e7-623272e212e4","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":56,"box":{"x":101,"y":894,"width":769,"height":11}},{"id":"5b07f29b-bb4b-4485-8e52-769f308f46bf","block_type":"box","text":"II-10","page_number":56,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"bb67437e-b98b-42ad-9860-724c8b06315a","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":56,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"fb52e60d-953e-4f48-9ac3-749cd6b25c1a","block_type":"box","text":"unavailability of additional financing. Issuers of high yield securities are often in the growth stage of their","page_number":57,"box":{"x":102,"y":45,"width":746,"height":11}},{"id":"188d92c2-e11d-4ded-b16e-ba79583ccf0f","block_type":"box","text":"development and/or involved in a reorganization or takeover.","page_number":57,"box":{"x":101,"y":60,"width":432,"height":11}},{"id":"f890f84b-c89e-4c1f-ba53-12fff8c1bcd9","block_type":"box","text":"•","page_number":57,"box":{"x":69,"y":83,"width":6,"height":4}},{"id":"625939b3-8a97-44cd-85c3-431a27f765c4","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":57,"box":{"x":101,"y":80,"width":808,"height":11}},{"id":"072cedb1-34d8-448b-b90f-5f876a6e1233","block_type":"box","text":"senior obligations are generally paid off before the junior obligations, which will potentially limit a Fund’s ability","page_number":57,"box":{"x":102,"y":95,"width":789,"height":11}},{"id":"e302552a-a448-429e-bf54-bf5546cd1780","block_type":"box","text":"to fully recover principal or to receive interest payments when senior securities are in default. Thus, investors in","page_number":57,"box":{"x":101,"y":110,"width":796,"height":11}},{"id":"6044c22c-171f-4cbd-ae40-ed85a9bf69ee","block_type":"box","text":"high yield securities have a lower degree of protection with respect to principal and interest payments than do","page_number":57,"box":{"x":102,"y":125,"width":782,"height":12}},{"id":"63765a53-2320-43ec-9a7a-0e3ab1f89772","block_type":"box","text":"investors in higher rated securities.","page_number":57,"box":{"x":102,"y":141,"width":249,"height":11}},{"id":"6e64bd33-2dd2-4bea-b16c-dbcbb3923d23","block_type":"box","text":"•","page_number":57,"box":{"x":69,"y":163,"width":6,"height":5}},{"id":"78b6b010-7ccd-4a51-ba1b-b044fc56750d","block_type":"box","text":"Junk bonds frequently have redemption features that permit an issuer to repurchase the security from a Fund","page_number":57,"box":{"x":101,"y":161,"width":780,"height":11}},{"id":"a0057f8d-cb84-434d-b9b1-74b0e9b4a59e","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":57,"box":{"x":102,"y":176,"width":784,"height":11}},{"id":"cb724dc7-2526-4e24-b1c5-12335674d8ef","block_type":"box","text":"lower yields and may lose income.","page_number":57,"box":{"x":102,"y":191,"width":242,"height":11}},{"id":"40ac818f-f866-4244-8b3e-2fa46bbe9288","block_type":"box","text":"•","page_number":57,"box":{"x":69,"y":214,"width":6,"height":4}},{"id":"0d20d428-8444-48ef-b9cf-ddd05867794e","block_type":"box","text":"Prices of junk bonds are subject to extreme price fluctuations. Negative economic developments may have a","page_number":57,"box":{"x":102,"y":211,"width":772,"height":11}},{"id":"6683dc0b-83c6-441a-8ff8-0bc0273c129b","block_type":"box","text":"greater impact on the prices of junk bonds than on those of other higher rated fixed-income securities.","page_number":57,"box":{"x":101,"y":226,"width":729,"height":11}},{"id":"10c3095f-5786-4108-9273-ea9944c3fb31","block_type":"box","text":"•","page_number":57,"box":{"x":69,"y":249,"width":6,"height":5}},{"id":"467a0859-e6a0-4a6a-b9e1-0c040e107953","block_type":"box","text":"Junk bonds may be less liquid than higher rated fixed-income securities even under normal economic conditions.","page_number":57,"box":{"x":101,"y":246,"width":802,"height":11}},{"id":"fe2ef2b5-1725-4216-8b42-a1c01d3a66ee","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":57,"box":{"x":102,"y":261,"width":768,"height":12}},{"id":"df1779df-8464-4727-925b-81755f52ba15","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":57,"box":{"x":102,"y":276,"width":805,"height":12}},{"id":"fb837994-8f4e-43d5-89f3-d6140a6660dc","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":57,"box":{"x":102,"y":292,"width":781,"height":11}},{"id":"867d705b-7b00-46d5-ac18-97791ac4f6fa","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":57,"box":{"x":102,"y":307,"width":767,"height":11}},{"id":"14ae8919-d4fe-4dc9-a7b5-e1223cbae099","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":57,"box":{"x":102,"y":322,"width":806,"height":11}},{"id":"7f7b7086-4868-406c-94e6-45c4929fd8a8","block_type":"box","text":"than in the case of securities trading in a more liquid market.","page_number":57,"box":{"x":101,"y":337,"width":436,"height":11}},{"id":"0516860f-5072-4717-941c-b3eba61a3c27","block_type":"box","text":"•","page_number":57,"box":{"x":69,"y":360,"width":6,"height":5}},{"id":"6da54476-2cb0-4256-b354-dad980f9644d","block_type":"box","text":"The secondary markets for high yield securities are not as liquid as the secondary markets for higher rated","page_number":57,"box":{"x":101,"y":357,"width":763,"height":11}},{"id":"d8074a9b-5855-488a-b393-5bd7c24300e0","block_type":"box","text":"securities. The secondary markets for high yield securities are concentrated in relatively few market makers and","page_number":57,"box":{"x":102,"y":372,"width":798,"height":11}},{"id":"c814a213-a68f-4b4d-9417-a50a22bf30f3","block_type":"box","text":"par ticipants in the markets are mostly institutional investors, including insurance companies, banks, other","page_number":57,"box":{"x":102,"y":388,"width":759,"height":11}},{"id":"c4010db1-3c58-4a1a-b099-694fe5ffb7d9","block_type":"box","text":"financial institutions and mutual funds. In addition, the trading volume for high yield securities is generally lower","page_number":57,"box":{"x":101,"y":402,"width":798,"height":12}},{"id":"75193631-1b5c-43e1-84b3-79429f06a578","block_type":"box","text":"than that for higher rated securities and the secondary markets could contract under adverse market or","page_number":57,"box":{"x":101,"y":418,"width":739,"height":11}},{"id":"01a627e6-a40f-4f41-93cd-522ad5e255eb","block_type":"box","text":"economic conditions independent of any specific adverse changes in the condition of a par ticular issuer. Under","page_number":57,"box":{"x":101,"y":433,"width":792,"height":11}},{"id":"711c6c07-2f64-4817-885a-a0218f1293c3","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":57,"box":{"x":101,"y":448,"width":797,"height":11}},{"id":"04ace09b-a03a-465b-8a07-53c0b84cf52f","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":57,"box":{"x":101,"y":463,"width":791,"height":11}},{"id":"6d96f2c3-ae38-42ee-975d-1f6d1c1fe2fb","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":57,"box":{"x":102,"y":478,"width":777,"height":11}},{"id":"6b8aad65-32cc-4fc6-ab4a-d46c36a6631f","block_type":"box","text":"issue and obtaining accurate market quotations on the issue when valuing a Fund’s assets. Market quotations","page_number":57,"box":{"x":102,"y":493,"width":788,"height":11}},{"id":"7b5fdfab-a873-4db6-b986-7a74a7544f4b","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":57,"box":{"x":102,"y":508,"width":797,"height":12}},{"id":"77f00b64-6bdf-4217-bd1b-7c96b7a560c3","block_type":"box","text":"actual prices available for a purchase or sale. When the secondary market for high yield securities becomes","page_number":57,"box":{"x":102,"y":523,"width":769,"height":12}},{"id":"ac991f52-5be9-4e0b-b44e-f03f9680c803","block_type":"box","text":"more illiquid, or in the absence of readily available market quotations for such securities, the relative lack of","page_number":57,"box":{"x":102,"y":538,"width":772,"height":12}},{"id":"98c863b4-be8e-439e-9ce9-103ad40e2105","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":57,"box":{"x":102,"y":554,"width":801,"height":11}},{"id":"4296344e-9710-458c-963f-91da43d37811","block_type":"box","text":"role in determining such valuations.","page_number":57,"box":{"x":102,"y":569,"width":252,"height":11}},{"id":"14f2d785-79ef-4112-a50f-9ccce386dd74","block_type":"box","text":"•","page_number":57,"box":{"x":69,"y":592,"width":6,"height":4}},{"id":"377c1408-1120-44f3-b137-5f37b7b1bae6","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":57,"box":{"x":101,"y":589,"width":808,"height":11}},{"id":"f8635a0b-f783-4645-baab-51c33da8e065","block_type":"box","text":"a defaulting issuer.","page_number":57,"box":{"x":102,"y":604,"width":134,"height":11}},{"id":"2679dd93-8433-4890-ba5d-609dc159bf61","block_type":"box","text":"•","page_number":57,"box":{"x":69,"y":627,"width":6,"height":5}},{"id":"12ce3294-1d2b-44e8-aaee-652d830fc4b9","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":57,"box":{"x":101,"y":624,"width":800,"height":11}},{"id":"483c5aab-f16b-4a92-a033-7b17588de47e","block_type":"box","text":"or expectation of adverse news, whether or not it is based on fundamental analysis. Additionally, prices for high","page_number":57,"box":{"x":102,"y":639,"width":793,"height":12}},{"id":"3e7f1666-7b10-4c67-b671-eb336d5bb8ed","block_type":"box","text":"yield securities may be affected by legislative and regulatory developments. These developments could adversely","page_number":57,"box":{"x":101,"y":654,"width":808,"height":12}},{"id":"e3226174-36fe-4f4f-ab6a-ced89b95c230","block_type":"box","text":"affect a Fund’s NAV and investment practices, the secondary market for high yield securities, the financial","page_number":57,"box":{"x":102,"y":669,"width":756,"height":12}},{"id":"cfcda536-dad3-4f69-8c06-e6ccb64564af","block_type":"box","text":"condition of issuers of these securities and the value and liquidity of outstanding high yield securities, especially","page_number":57,"box":{"x":101,"y":685,"width":803,"height":11}},{"id":"ca7b850d-3c47-459a-8081-033b6f8d0687","block_type":"box","text":"in a thinly traded market. For example, federal legislation requiring the divestiture by federally insured savings","page_number":57,"box":{"x":102,"y":700,"width":781,"height":11}},{"id":"bf93833e-25e7-43cf-8374-209f15d52203","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":57,"box":{"x":102,"y":715,"width":798,"height":11}},{"id":"f9369ff5-40e3-485c-b950-ea6b2b6eeb3a","block_type":"box","text":"corporate issuers of high yield bonds adversely affected the market in the past.","page_number":57,"box":{"x":101,"y":730,"width":566,"height":11}},{"id":"1dce542b-0993-41ab-b2b5-ce33df04fb26","block_type":"box","text":"•","page_number":57,"box":{"x":69,"y":753,"width":6,"height":5}},{"id":"ce0dd834-255c-41ea-b99d-5c39b97112c5","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":57,"box":{"x":101,"y":750,"width":751,"height":11}},{"id":"258d11c1-0be6-4e19-ae3b-bf8f6a5c0529","block_type":"box","text":"investment grade security’s principal and interest payments, but does not address market value risk. Because","page_number":57,"box":{"x":102,"y":766,"width":786,"height":11}},{"id":"ad8334b4-a058-4a99-a019-73490649b0a8","block_type":"box","text":"such ratings of the ratings agencies may not always reflect current conditions and events, in addition to using","page_number":57,"box":{"x":102,"y":780,"width":782,"height":12}},{"id":"817d0243-cfb9-4f6b-ad18-6bc9fd8aac23","block_type":"box","text":"recognized rating agencies and other sources, the Manager or sub-adviser per forms its own analysis of the","page_number":57,"box":{"x":102,"y":795,"width":762,"height":12}},{"id":"da06037a-c44e-49df-bcbf-5036074aea76","block_type":"box","text":"issuers whose non-investment grade securities a Fund holds. Because of this, the Fund’s per formance may","page_number":57,"box":{"x":102,"y":811,"width":767,"height":11}},{"id":"8d804446-a9c5-4b44-bb76-adc1b6dc9c2e","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":57,"box":{"x":101,"y":826,"width":806,"height":11}},{"id":"57258ea6-4cbe-4370-90a2-2867eb53e0ec","block_type":"box","text":"higher-rated securities.","page_number":57,"box":{"x":102,"y":841,"width":161,"height":11}},{"id":"3876fcee-935a-4c27-93e1-50218bacc905","block_type":"box","text":"In selecting non-investment grade securities, the Manager or sub-adviser considers factors such as those","page_number":57,"box":{"x":102,"y":863,"width":751,"height":12}},{"id":"61071b8a-7ba7-42be-95ae-1f46cb0a2593","block_type":"box","text":"relating to the creditwor thiness of issuers, the ratings and per formance of the securities, the protections afforded","page_number":57,"box":{"x":69,"y":879,"width":814,"height":11}},{"id":"e662a045-1805-4fd6-a1e9-85156a12cd4f","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":57,"box":{"x":68,"y":894,"width":812,"height":11}},{"id":"6f9ed871-ffb4-4cf9-9ef5-1676cc3d9fd3","block_type":"box","text":"investment grade securities held by the Fund for their ability to make required principal and interest payments, as","page_number":57,"box":{"x":70,"y":909,"width":808,"height":11}},{"id":"2ed26531-bd43-423c-b3fd-9f1b4074d830","block_type":"box","text":"II-11","page_number":57,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"0aa7dff2-736c-42ac-bc0c-a11e16342773","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":57,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"147a3ace-4162-4a09-a4ad-fad4074d495c","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":58,"box":{"x":68,"y":45,"width":825,"height":11}},{"id":"13beeff0-0a41-4a24-846b-f3d9cc5dc223","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":58,"box":{"x":70,"y":60,"width":779,"height":11}},{"id":"51b5e1e2-e66c-41c8-9da2-8db8708b2a50","block_type":"box","text":"consider whether the Fund should continue to hold the security.","page_number":58,"box":{"x":69,"y":75,"width":451,"height":11}},{"id":"b9da0a94-898c-495e-ac85-36bf145cb383","block_type":"box","text":"In the event that a Fund investing in high yield securities experiences an unexpected level of net redemptions,","page_number":58,"box":{"x":102,"y":98,"width":782,"height":11}},{"id":"46f2f6bd-e730-4015-ad8d-11a3d2d09015","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":58,"box":{"x":68,"y":113,"width":825,"height":11}},{"id":"4f0a37e5-54bf-490f-acad-ebfba98624ee","block_type":"box","text":"upon which the Fund’s rate of return is based.","page_number":58,"box":{"x":69,"y":128,"width":328,"height":11}},{"id":"09e63660-542d-4805-9947-4da5187b5646","block_type":"box","text":"The costs attributable to investing in the junk bond markets are usually higher for several reasons, such as","page_number":58,"box":{"x":101,"y":150,"width":764,"height":12}},{"id":"391e63f1-ec9a-4d83-8c90-f8c944a9ad46","block_type":"box","text":"higher investment research costs and higher commission costs.","page_number":58,"box":{"x":69,"y":166,"width":455,"height":11}},{"id":"c2b03f60-06bd-421f-a2ec-aa2c83ac6d7c","block_type":"box","text":"Mezzanine Investments.","page_number":58,"box":{"x":102,"y":188,"width":170,"height":9}},{"id":"f2f4e1f2-d82c-4a85-a028-a0f927d1f461","block_type":"box","text":"Cer tain Funds, consistent with their restrictions on investing in securities of a specific","page_number":58,"box":{"x":279,"y":188,"width":612,"height":12}},{"id":"e00e23de-11ac-4972-b7af-660d656e2f90","block_type":"box","text":"credit quality, may invest in cer tain high yield securities known as mezzanine investments, which are subordinated","page_number":58,"box":{"x":69,"y":204,"width":813,"height":11}},{"id":"a11bb810-94b4-4fde-9b3e-e270e80e23d1","block_type":"box","text":"debt securities which are generally issued in private placements in connection with an equity security (","page_number":58,"box":{"x":69,"y":219,"width":729,"height":11}},{"id":"0bafcbe7-bf6b-4f15-a6cf-e4dc5eda9e75","block_type":"box","text":"e.g.","page_number":58,"box":{"x":800,"y":220,"width":24,"height":10}},{"id":"546df766-d1f0-420e-9f0c-fafc8df22366","block_type":"box","text":", with","page_number":58,"box":{"x":827,"y":219,"width":36,"height":10}},{"id":"abfa3881-2f02-46ec-bd28-4a7c4251db90","block_type":"box","text":"attached warrants). Such mezzanine investments may be issued with or without registration rights. Similar to other","page_number":58,"box":{"x":69,"y":234,"width":818,"height":11}},{"id":"db9faebf-1c0b-4cdd-90a0-815c5b7f32d9","block_type":"box","text":"high yield securities, maturities of mezzanine investments are typically seven to ten years, but the expected average","page_number":58,"box":{"x":69,"y":249,"width":827,"height":11}},{"id":"299af2ad-81d6-466f-ac80-be3c66d8394b","block_type":"box","text":"life is significantly shor ter at three to five years. Mezzanine investments are usually unsecured and subordinate to","page_number":58,"box":{"x":70,"y":264,"width":813,"height":11}},{"id":"9bbef8a7-1c23-4aee-b7d6-d8838a9d220d","block_type":"box","text":"other obligations of the issuer.","page_number":58,"box":{"x":69,"y":279,"width":216,"height":11}},{"id":"2bba745e-9353-479b-889d-ee59474ff3bd","block_type":"box","text":"Pay-in-kind Bonds.","page_number":58,"box":{"x":102,"y":302,"width":127,"height":11}},{"id":"0efa3359-cffd-4629-bf33-dbb23c6c967f","block_type":"box","text":"Cer tain Funds may invest in pay-in-kind, or PIK, bonds. PIK bonds are bonds which pay","page_number":58,"box":{"x":236,"y":302,"width":615,"height":11}},{"id":"1b5c892a-2769-4ab2-86c7-f085268b100c","block_type":"box","text":"interest through the issuance of additional debt or equity securities. Similar to zero coupon obligations, pay-in-kind","page_number":58,"box":{"x":70,"y":317,"width":813,"height":11}},{"id":"a0cc6062-8dfc-4e5b-acf6-6ee0ae23c683","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":58,"box":{"x":69,"y":332,"width":820,"height":11}},{"id":"328d2533-d664-4cf9-90b6-160af2ee11f4","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":58,"box":{"x":69,"y":347,"width":784,"height":11}},{"id":"7d066e52-c0b7-4d40-ace6-e81f1c61a335","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":58,"box":{"x":70,"y":362,"width":783,"height":11}},{"id":"0d46912f-b8a3-4a0a-b3a7-aa41674504ab","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":58,"box":{"x":68,"y":377,"width":790,"height":11}},{"id":"5438d2ca-ebc8-46d1-8455-cdbaf7b30eb2","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":58,"box":{"x":68,"y":392,"width":831,"height":12}},{"id":"b5dda6ec-0194-45d1-a9d5-ed21f467bf7a","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":58,"box":{"x":69,"y":407,"width":830,"height":12}},{"id":"e080aa43-c219-4809-8317-c0585379f3f5","block_type":"box","text":"federal income and excise taxes, each Fund may be required to distribute income accrued with respect to these","page_number":58,"box":{"x":68,"y":423,"width":798,"height":11}},{"id":"df081a87-084c-4fe3-93ba-72eec103e8d8","block_type":"box","text":"securities and may have to dispose of por tfolio securities under disadvantageous circumstances in order to generate","page_number":58,"box":{"x":69,"y":438,"width":835,"height":11}},{"id":"b6fc4a89-19ca-4ea8-ae74-e081bbd36ca8","block_type":"box","text":"cash to satisfy these distribution requirements.","page_number":58,"box":{"x":69,"y":453,"width":336,"height":11}},{"id":"9e5a5ced-a875-4e44-984a-fbbd34558ee4","block_type":"box","text":"Supranational Entities.","page_number":58,"box":{"x":102,"y":476,"width":160,"height":10}},{"id":"3bb48def-66f5-4692-be74-5fdedc986160","block_type":"box","text":"A Fund may invest in debt securities of supranational entities. Examples of such entities","page_number":58,"box":{"x":268,"y":475,"width":629,"height":12}},{"id":"00583213-72be-46e1-b8d3-f51c4be9b305","block_type":"box","text":"include the International Bank for Reconstruction and Development (the World Bank), the European Steel and Coal","page_number":58,"box":{"x":70,"y":491,"width":814,"height":11}},{"id":"d1d912f3-ced5-4082-9d17-41b4d6aeefc1","block_type":"box","text":"Community, the Asian Development Bank and the Inter-American Development Bank. The government members, or","page_number":58,"box":{"x":69,"y":506,"width":817,"height":11}},{"id":"d6cb858b-bf7e-42f3-9174-957fc4971352","block_type":"box","text":"“stockholders,” usually make initial capital contributions to the supranational entity and in many cases are","page_number":58,"box":{"x":70,"y":521,"width":759,"height":11}},{"id":"5677c5d2-c7fa-4692-b9f4-4dd45b5000c7","block_type":"box","text":"committed to make additional capital contributions if the supranational entity is unable to repay its borrowings. There","page_number":58,"box":{"x":69,"y":536,"width":836,"height":11}},{"id":"7772c36b-2cfb-4e64-8d46-89b7b62b8997","block_type":"box","text":"is no guarantee that one or more stockholders of a supranational entity will continue to make any necessary","page_number":58,"box":{"x":70,"y":551,"width":772,"height":11}},{"id":"84cb331d-c98f-44e2-ac24-53798963193d","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":58,"box":{"x":69,"y":566,"width":830,"height":11}},{"id":"8e7fda48-e8ee-4374-b96c-84d6cfc575d4","block_type":"box","text":"principal on its debt securities, and a Fund may lose money on such investments.","page_number":58,"box":{"x":70,"y":582,"width":580,"height":10}},{"id":"401b83ab-5b7b-4bf2-843b-be7b70099028","block_type":"box","text":"Depositary Receipts (ADRs, EDRs and GDRs).","page_number":58,"box":{"x":102,"y":604,"width":334,"height":11}},{"id":"2164d973-7f86-4c6d-bde5-db5fdace69e4","block_type":"box","text":"Cer tain Funds may invest in the securities of foreign issuers in","page_number":58,"box":{"x":442,"y":604,"width":446,"height":11}},{"id":"6217912a-815d-47d6-b5e5-0494cdcd1e0c","block_type":"box","text":"the form of Depositary Receipts or other securities conver tible into securities of foreign issuers. Depositary Receipts","page_number":58,"box":{"x":68,"y":619,"width":835,"height":11}},{"id":"b06ff612-7b52-4a31-a5bd-b6c80aa5be76","block_type":"box","text":"may not necessarily be denominated in the same currency as the underlying securities into which they may be","page_number":58,"box":{"x":69,"y":634,"width":784,"height":12}},{"id":"08fbdee6-52a6-4c49-99c2-3b8f765f9cf3","block_type":"box","text":"conver ted. The Fund may invest in both sponsored and unsponsored American Depositary Receipts (“ADRs”),","page_number":58,"box":{"x":69,"y":650,"width":781,"height":11}},{"id":"2818e56e-337d-4f9b-bc45-2d9440c49a1f","block_type":"box","text":"European Depositary Receipts (“EDRs”), Global Depositary Receipts (“GDRs”) and other similar global instruments.","page_number":58,"box":{"x":70,"y":665,"width":823,"height":11}},{"id":"7331fe5c-0abf-4575-91f7-3f704a42cdf3","block_type":"box","text":"ADRs typically are issued by an American bank or trust company and evidence ownership of underlying securities","page_number":58,"box":{"x":68,"y":680,"width":804,"height":11}},{"id":"d9a0f549-42e9-4da9-a0ba-a8331b9c7a8a","block_type":"box","text":"issued by a foreign corporation. EDRs, which are sometimes referred to as Continental Depositary Receipts, are","page_number":58,"box":{"x":70,"y":695,"width":799,"height":11}},{"id":"4fb72c24-a375-458e-85e3-e418fbf9f128","block_type":"box","text":"receipts issued in Europe, typically by foreign banks and trust companies, that evidence ownership of either foreign","page_number":58,"box":{"x":69,"y":710,"width":821,"height":11}},{"id":"cd31c33a-43aa-4938-8bc5-c6f6c6d6e460","block_type":"box","text":"or domestic underlying securities. GDRs are depositary receipts structured like global debt issues to facilitate trading","page_number":58,"box":{"x":69,"y":725,"width":837,"height":11}},{"id":"6fa0f674-e282-48ba-9ab4-e222d29ee536","block_type":"box","text":"on an international basis. In addition to investment risks associated with the underlying issuer, Depositary Receipts","page_number":58,"box":{"x":69,"y":740,"width":825,"height":11}},{"id":"d05ffdd9-22a2-4092-8e37-aec4a33d11ba","block_type":"box","text":"expose a Fund to additional risks associated with the non-uniform terms that apply to Depositary Receipt programs,","page_number":58,"box":{"x":69,"y":755,"width":825,"height":11}},{"id":"34f88671-d38b-4b49-a7fb-00466e349c51","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":58,"box":{"x":69,"y":771,"width":780,"height":10}},{"id":"583b1f71-adc9-4f54-9191-769b41bbbf1c","block_type":"box","text":"establishes the programs, currency risk and the risk of an illiquid market for Depositary Receipts. Unsponsored ADR,","page_number":58,"box":{"x":69,"y":785,"width":833,"height":12}},{"id":"338a1d37-3119-44be-b697-cc968f0e773c","block_type":"box","text":"EDR and GDR programs are organized independently and without the cooperation of the issuer of the underlying","page_number":58,"box":{"x":70,"y":801,"width":796,"height":11}},{"id":"4094fe71-8e07-4115-b193-e06ecb2adf2f","block_type":"box","text":"securities. Unsponsored programs generally expose investors to greater risks than sponsored programs and do not","page_number":58,"box":{"x":69,"y":816,"width":822,"height":11}},{"id":"5f2ff29b-3397-4532-a0fd-92f499435284","block_type":"box","text":"provide holders with many of the shareholder benefits that come from investing in a sponsored Depositary Receipt.","page_number":58,"box":{"x":70,"y":831,"width":820,"height":11}},{"id":"1535b52c-89a0-4b34-9466-7a23eb17dd44","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":58,"box":{"x":68,"y":846,"width":827,"height":11}},{"id":"8a856edd-cb88-469a-a30f-9a2e7a0e6b9a","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":58,"box":{"x":70,"y":861,"width":825,"height":11}},{"id":"09cf38f9-9ef1-466f-9b15-160ed4ab2cbc","block_type":"box","text":"issuer. Depositary Receipts are generally subject to the same risks as the foreign securities that they evidence or","page_number":58,"box":{"x":70,"y":876,"width":810,"height":11}},{"id":"9c5d2917-50fe-4ac9-a3c2-b172bc30ae84","block_type":"box","text":"into which they may be conver ted. Investments in ADRs, EDRs and GDRs present additional investment","page_number":58,"box":{"x":70,"y":891,"width":737,"height":11}},{"id":"55930432-a7a3-45fc-8079-9fb8c9fc821d","block_type":"box","text":"considerations as described under “Foreign Investment Risks.”","page_number":58,"box":{"x":69,"y":907,"width":449,"height":11}},{"id":"2c946be3-73a4-4864-a909-9e882228fc9a","block_type":"box","text":"II-12","page_number":58,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"88e52d9c-52fd-4492-814e-88038972cbda","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":58,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ce788ecd-c0b2-4fef-b602-a262859688d3","block_type":"box","text":"Derivatives.","page_number":59,"box":{"x":102,"y":45,"width":84,"height":9}},{"id":"210cdc61-0f6e-42b8-a1eb-a1c2e3bb2509","block_type":"box","text":"General.","page_number":59,"box":{"x":102,"y":67,"width":58,"height":9}},{"id":"01f13ca3-dff5-4f7d-b1b8-993d415d5dc6","block_type":"box","text":"Each Fund may use instruments referred to as derivatives, which are financial instruments that derive","page_number":59,"box":{"x":167,"y":67,"width":725,"height":11}},{"id":"951462b1-878d-4fca-848f-8ab08af06e36","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":59,"box":{"x":68,"y":82,"width":836,"height":12}},{"id":"b7de3182-e6eb-45a3-9e69-8b14d13d7a77","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":59,"box":{"x":70,"y":98,"width":829,"height":11}},{"id":"6d8bdb7c-ce4b-4f67-86f9-d41ed61ebcab","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":59,"box":{"x":70,"y":113,"width":830,"height":11}},{"id":"158d5e48-2965-4cb8-ad2a-83ed4fce89d4","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":59,"box":{"x":69,"y":128,"width":804,"height":11}},{"id":"c726ba1e-ae67-4574-a08c-a1c0f05713b9","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":59,"box":{"x":69,"y":143,"width":800,"height":11}},{"id":"df2ccf55-6ca4-414f-8270-ebec7100cd0f","block_type":"box","text":"class it is prohibited by its investment restrictions from purchasing directly. As described below, derivatives can be","page_number":59,"box":{"x":69,"y":158,"width":816,"height":11}},{"id":"0019a400-a971-4e9d-910a-a4c59789ef04","block_type":"box","text":"used for hedging or speculative purposes. Funds will engage in transaction-level payment netting,","page_number":59,"box":{"x":69,"y":173,"width":691,"height":11}},{"id":"28121c82-f4a6-496f-94d3-ea8f6a99ec3e","block_type":"box","text":"i.e.","page_number":59,"box":{"x":768,"y":173,"width":20,"height":9}},{"id":"ff85e28e-7b0b-4254-8ef9-a396618fdf80","block_type":"box","text":", the payment","page_number":59,"box":{"x":791,"y":173,"width":96,"height":11}},{"id":"f17387a3-d47a-4313-8fe6-ae4c6637d3c0","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":59,"box":{"x":69,"y":188,"width":839,"height":12}},{"id":"70596f80-bb1f-4167-8498-31951d103ec3","block_type":"box","text":"be, only the net amount of the two payment streams.","page_number":59,"box":{"x":69,"y":203,"width":378,"height":12}},{"id":"470f5208-bee0-4948-b8c9-5cee5095dc0b","block_type":"box","text":"Hedging.","page_number":59,"box":{"x":102,"y":226,"width":60,"height":11}},{"id":"af696460-ede3-4e32-abb1-f0f43cb61116","block_type":"box","text":"Each Fund may use derivatives for hedging purposes, in which a derivative is used to offset the risks","page_number":59,"box":{"x":169,"y":226,"width":717,"height":11}},{"id":"23baecd1-9fa5-4dc2-9cba-5d15f8b9735d","block_type":"box","text":"associated with other Fund holdings. Losses on other investments may be substantially reduced by gains on a","page_number":59,"box":{"x":69,"y":241,"width":786,"height":11}},{"id":"ae3a8cb9-658a-47d0-b771-82a40da8d8e8","block_type":"box","text":"derivative that reacts in an opposite manner to market movements. Although hedging may reduce losses, it may also","page_number":59,"box":{"x":69,"y":257,"width":834,"height":11}},{"id":"736e44c7-7118-4320-b880-ce09cbcfd508","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":59,"box":{"x":69,"y":271,"width":834,"height":12}},{"id":"b8df6a14-91f6-4a30-b2ee-b7432cf4b12e","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":59,"box":{"x":70,"y":286,"width":797,"height":12}},{"id":"925c2c95-d2c6-4d4d-a5fa-7d9c61d42ea7","block_type":"box","text":"correlation risk,","page_number":59,"box":{"x":69,"y":302,"width":109,"height":10}},{"id":"0954b310-15dd-406a-83d6-2a5e29c66f6b","block_type":"box","text":"i.e.","page_number":59,"box":{"x":186,"y":302,"width":20,"height":9}},{"id":"558ccc9c-9b4d-43c0-af52-e99ba3d4a826","block_type":"box","text":", the risk that changes in the value of the derivative will not match those of the holdings being","page_number":59,"box":{"x":209,"y":302,"width":669,"height":11}},{"id":"50c4c89a-9a3b-4eaf-b296-a32491590182","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":59,"box":{"x":69,"y":317,"width":797,"height":11}},{"id":"2bf1b4ac-64b0-4def-91f2-efc90565f5a2","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":59,"box":{"x":69,"y":332,"width":835,"height":11}},{"id":"c7bfec07-3a72-4dbf-84b5-c32afb47636c","block_type":"box","text":"be effective. No Fund is required to use derivatives to hedge.","page_number":59,"box":{"x":69,"y":347,"width":434,"height":11}},{"id":"4508fff6-d562-4bb8-8785-3cef520fd6a5","block_type":"box","text":"Speculation.","page_number":59,"box":{"x":102,"y":370,"width":86,"height":11}},{"id":"535f7187-a7c8-40a6-9854-a0a4083d8cdf","block_type":"box","text":"Cer tain Funds may also use derivatives for speculative purposes to seek to enhance returns. The","page_number":59,"box":{"x":195,"y":370,"width":694,"height":11}},{"id":"372a2f66-6acf-45bb-8637-bac32ea84f50","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":59,"box":{"x":69,"y":385,"width":831,"height":11}},{"id":"8c230dd8-0425-4588-bf5a-a0525de73c84","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":59,"box":{"x":70,"y":400,"width":824,"height":11}},{"id":"81d5586d-3052-495e-a073-427dd211b0d1","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":59,"box":{"x":69,"y":415,"width":831,"height":11}},{"id":"474f1304-6736-43d7-b06b-01e03bda700d","block_type":"box","text":"in cer tain cases may be unlimited.","page_number":59,"box":{"x":70,"y":430,"width":243,"height":11}},{"id":"dccc5600-ddc6-407f-b116-e120d8d233de","block_type":"box","text":"Regulation of Derivatives.","page_number":59,"box":{"x":102,"y":453,"width":180,"height":11}},{"id":"bdf1ff51-d1ec-4cda-8c4f-dc18647d0528","block_type":"box","text":"Rule 18f-4 Under the Investment Company Act.","page_number":59,"box":{"x":102,"y":475,"width":333,"height":12}},{"id":"4330ba0a-f7b4-41f7-b514-f83b1bd5101e","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to","page_number":59,"box":{"x":442,"y":475,"width":458,"height":12}},{"id":"07b0834f-ad73-484c-850b-d069abdd86f0","block_type":"box","text":"enter into Derivatives Transactions (as defined below) and cer tain other transactions notwithstanding the restrictions","page_number":59,"box":{"x":69,"y":491,"width":833,"height":11}},{"id":"aa9692e4-0121-41ee-855f-66163cd3ad47","block_type":"box","text":"on the issuance of “senior securities” under Section 18 of the Investment Company Act. Section 18 of the","page_number":59,"box":{"x":69,"y":506,"width":759,"height":11}},{"id":"a45f1d1d-95f1-446e-870f-31dab28fa620","block_type":"box","text":"Investment Company Act, among other things, prohibits open-end funds, including the Funds, from issuing or selling","page_number":59,"box":{"x":70,"y":521,"width":825,"height":11}},{"id":"c48084a2-f044-4ea8-b880-3646bb266bbf","block_type":"box","text":"any “senior security,” other than borrowing from a bank (subject to a requirement to maintain 300% “asset","page_number":59,"box":{"x":69,"y":536,"width":763,"height":11}},{"id":"77e8f317-a4a3-4ee8-840e-4a79ba1c2ff9","block_type":"box","text":"coverage”).","page_number":59,"box":{"x":69,"y":551,"width":79,"height":11}},{"id":"e7f95209-25a5-4453-a182-344aee2ed214","block_type":"box","text":"Under Rule 18f-4, “Derivatives Transactions” include the following: (1) any swap, security-based swap (including","page_number":59,"box":{"x":102,"y":574,"width":796,"height":11}},{"id":"ab594b92-cce8-45a6-a1ec-0e8eef641417","block_type":"box","text":"a contract for differences), futures contract, forward contract, option (excluding purchased options), any combination","page_number":59,"box":{"x":69,"y":589,"width":832,"height":11}},{"id":"86c16e11-1448-4025-abc9-186673a3e412","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":59,"box":{"x":69,"y":604,"width":840,"height":11}},{"id":"ca303c5c-c533-421c-a50f-aa13726cba9d","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":59,"box":{"x":69,"y":619,"width":801,"height":11}},{"id":"d5bb9a89-96a6-4a13-9109-5091b07978bc","block_type":"box","text":"settlement payment or otherwise; (2) any shor t sale borrowing; (3) reverse repurchase agreements and similar","page_number":59,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"f42362d2-faca-4bcb-a6a9-fd9225619841","block_type":"box","text":"financing transactions (","page_number":59,"box":{"x":68,"y":649,"width":166,"height":12}},{"id":"2a169b6f-5b2d-47cd-a6fa-61ca255cc17b","block_type":"box","text":"e.g.","page_number":59,"box":{"x":236,"y":651,"width":25,"height":10}},{"id":"c8c0af79-468e-4e66-a4d3-1733f70868ab","block_type":"box","text":", recourse and non-recourse tender option bonds, and borrowed bonds), if a Fund elects to","page_number":59,"box":{"x":263,"y":649,"width":646,"height":11}},{"id":"97a0356b-34f3-4f94-a39e-38554031f3b9","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":59,"box":{"x":68,"y":664,"width":825,"height":12}},{"id":"9a0b7057-609d-48b3-a1b7-6bfcaa7ad0cd","block_type":"box","text":"securities (","page_number":59,"box":{"x":69,"y":680,"width":78,"height":11}},{"id":"c25c4aa8-a44b-4e16-8d71-190f8a9277b2","block_type":"box","text":"e.g.","page_number":59,"box":{"x":148,"y":681,"width":25,"height":10}},{"id":"3681e027-3201-4843-b6f5-95808d556a45","block_type":"box","text":", firm and standby commitments, including to-be-announced (“TBA”) commitments, and dollar rolls)","page_number":59,"box":{"x":176,"y":680,"width":704,"height":11}},{"id":"63c1dbdb-7698-4cc4-a30c-7a00f1aeeab0","block_type":"box","text":"and non-standard settlement cycle securities, unless such transactions meet the Delayed-Settlement Securities","page_number":59,"box":{"x":69,"y":695,"width":796,"height":11}},{"id":"cb20479e-4dc6-48f3-9d98-ea4029120ba3","block_type":"box","text":"Provision (as defined below under “—When-Issued Securities, Delayed Delivery Securities and Forward","page_number":59,"box":{"x":69,"y":710,"width":732,"height":11}},{"id":"94ab54e7-a531-4272-a9f1-28bac7da664f","block_type":"box","text":"Commitments”).","page_number":59,"box":{"x":69,"y":725,"width":115,"height":11}},{"id":"5fb7a594-caa6-4c8b-9ea9-16422141b6e7","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":59,"box":{"x":102,"y":748,"width":805,"height":11}},{"id":"1b1ff8dc-d26d-475b-b979-618a92b76b48","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":59,"box":{"x":70,"y":763,"width":832,"height":11}},{"id":"1f76e174-d687-410d-b198-712c291cbcf9","block_type":"box","text":"implement a comprehensive written derivatives risk management program (“DRMP”) and comply with a relative or","page_number":59,"box":{"x":70,"y":778,"width":808,"height":11}},{"id":"0e863574-fb85-41a1-b17c-1a4bea2129aa","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":59,"box":{"x":69,"y":793,"width":780,"height":11}},{"id":"646273f4-11c4-4efb-92f7-a5aa14122b65","block_type":"box","text":"“derivatives risk manager,” who is appointed by the Fund’s Board, including a majority of the independent Directors,","page_number":59,"box":{"x":70,"y":808,"width":824,"height":11}},{"id":"12a555b7-6fbf-4e80-88f9-da5e917e0111","block_type":"box","text":"and periodically reviews the DRMP and repor ts to the Fund’s Board.","page_number":59,"box":{"x":69,"y":823,"width":482,"height":11}},{"id":"fac60ceb-e6d7-45c5-ace5-0495d77a1d88","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":59,"box":{"x":102,"y":846,"width":724,"height":11}},{"id":"e6140313-0954-4c12-90cd-4ff998f02694","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":59,"box":{"x":70,"y":861,"width":830,"height":11}},{"id":"9213545e-d9e5-40d7-b131-9bf551d4d7d9","block_type":"box","text":"adopts and implements written policies and procedures reasonably designed to manage its derivatives risks (the","page_number":59,"box":{"x":69,"y":876,"width":803,"height":11}},{"id":"d3f5a88a-b76f-4016-a191-47be230a1756","block_type":"box","text":"“Limited Derivatives User Exception”).","page_number":59,"box":{"x":70,"y":891,"width":268,"height":11}},{"id":"b0203452-c0a9-4a7b-8832-d24c55639842","block_type":"box","text":"II-13","page_number":59,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"cab6b825-1080-4637-ae84-03c29fbd480a","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":59,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"531010e9-5b60-4c03-874c-d92853031534","block_type":"box","text":"Dodd-Frank Regulations.","page_number":60,"box":{"x":102,"y":45,"width":171,"height":11}},{"id":"af843ad6-9eb4-42b3-9581-f5402b0f128b","block_type":"box","text":"The Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”),","page_number":60,"box":{"x":279,"y":45,"width":575,"height":11}},{"id":"b70570de-8c1f-40d3-adfe-c9fed416910a","block_type":"box","text":"enacted in July 2010, includes provisions that comprehensively regulate the over-the-counter (“OTC”) derivatives","page_number":60,"box":{"x":69,"y":60,"width":800,"height":11}},{"id":"fa921883-b7a0-48bf-b861-f283ae34a428","block_type":"box","text":"markets for the first time. While the Commodity Futures Trading Commission (“CFTC”) and other U.S. regulators have","page_number":60,"box":{"x":69,"y":75,"width":834,"height":11}},{"id":"a7fed194-e0b6-4037-8b0f-4797be2c7088","block_type":"box","text":"adopted many of the required Dodd-Frank regulations, cer tain regulations have only recently become effective and","page_number":60,"box":{"x":69,"y":90,"width":813,"height":11}},{"id":"6fac4542-60ab-4030-99cb-0b1e50d272a6","block_type":"box","text":"other regulations remain to be adopted. The full impact of Dodd-Frank on the Funds remains uncer tain.","page_number":60,"box":{"x":69,"y":105,"width":733,"height":11}},{"id":"4851fc93-219d-4362-9473-9b0620935338","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":60,"box":{"x":102,"y":128,"width":789,"height":11}},{"id":"ef400bd5-97b2-4401-b2b3-03a7e5ee176d","block_type":"box","text":"“security-based swap dealers”. Registered swap dealers and security-based swap dealers are subject to various","page_number":60,"box":{"x":70,"y":143,"width":797,"height":11}},{"id":"d75e120b-cf00-4fed-9b21-3ee62a00b826","block_type":"box","text":"regulatory requirements, including, but not limited to, margin, recordkeeping, repor ting, transparency, position limits,","page_number":60,"box":{"x":69,"y":158,"width":833,"height":11}},{"id":"170c5985-2e0e-4499-be83-cfd692182d52","block_type":"box","text":"limitations on conflicts of interest, business conduct standards, minimum capital requirements and other regulatory","page_number":60,"box":{"x":70,"y":173,"width":826,"height":11}},{"id":"7e8995cc-a3f7-4611-a204-5e2b71fc483e","block_type":"box","text":"requirements, which indirectly impact the Funds that enter into transactions with them.","page_number":60,"box":{"x":69,"y":188,"width":618,"height":11}},{"id":"95e31cf9-34ad-4833-848c-ec9472593e7c","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":60,"box":{"x":101,"y":211,"width":745,"height":11}},{"id":"2a40910c-35c6-4fce-ac0f-617d3bf23109","block_type":"box","text":"regulated markets and be submitted for clearing to regulated clearinghouses. The SEC is also expected to impose","page_number":60,"box":{"x":69,"y":226,"width":813,"height":11}},{"id":"bd77b592-cc0b-4a8c-a7e4-841b293ab028","block_type":"box","text":"similar requirements on cer tain security-based derivatives in the future. OTC derivatives trades submitted for clearing","page_number":60,"box":{"x":69,"y":241,"width":835,"height":11}},{"id":"d490df69-0abc-4b57-be7d-d20fca7ba0e7","block_type":"box","text":"are subject to minimum initial and variation margin requirements set by the relevant clearinghouse, as well as margin","page_number":60,"box":{"x":69,"y":257,"width":837,"height":11}},{"id":"579ea77a-d898-4551-94de-bef66c62e554","block_type":"box","text":"requirements mandated by the CFTC, SEC and/or federal prudential regulators. In addition, futures commission","page_number":60,"box":{"x":69,"y":271,"width":794,"height":12}},{"id":"3a0a7730-5c42-4bbe-baa0-a3a28c71ba8b","block_type":"box","text":"merchants (“FCMs”), who act as clearing members on behalf of customers for cleared OTC derivatives and futures","page_number":60,"box":{"x":69,"y":286,"width":815,"height":12}},{"id":"f0720683-c1e9-479d-ba55-db0a5f709ae3","block_type":"box","text":"contracts, also have discretion to increase a Fund’s margin requirements for these transactions beyond any","page_number":60,"box":{"x":69,"y":302,"width":770,"height":11}},{"id":"f084adb6-11f0-4829-a291-e437d0a3e04e","block_type":"box","text":"regulatory and clearinghouse minimums subject to any restrictions on such discretion in the documentation between","page_number":60,"box":{"x":69,"y":317,"width":831,"height":11}},{"id":"ab529fd6-9458-447a-8cec-6c01cce4cbd5","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":60,"box":{"x":68,"y":332,"width":804,"height":11}},{"id":"f5110bc4-c5e2-4396-ba77-75b5a8f2eab0","block_type":"box","text":"enter into highly tailored or customized transactions, potentially rendering cer tain investment strategies impossible or","page_number":60,"box":{"x":69,"y":347,"width":839,"height":11}},{"id":"80d4c559-0a88-4779-8505-cd3664b9b333","block_type":"box","text":"not economically feasible. If a Fund decides to execute and clear cleared OTC derivatives and/or futures contracts","page_number":60,"box":{"x":69,"y":362,"width":814,"height":11}},{"id":"c08d9c18-c270-41ac-a042-2eb340301c1b","block_type":"box","text":"through execution facilities, exchanges or clearinghouses, either indirectly through an executing broker, clearing","page_number":60,"box":{"x":68,"y":377,"width":796,"height":12}},{"id":"6566e28e-10e5-411d-b574-59482298e2c3","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":60,"box":{"x":69,"y":392,"width":793,"height":12}},{"id":"ef864f89-622b-4563-a454-2c887619b446","block_type":"box","text":"exchange or clearinghouse and other applicable law.","page_number":60,"box":{"x":69,"y":408,"width":370,"height":11}},{"id":"860cc33e-7905-4774-a44f-39cbe37f2296","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":60,"box":{"x":101,"y":430,"width":766,"height":11}},{"id":"0685f523-771f-4850-99d4-765b78de5e6c","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":60,"box":{"x":69,"y":445,"width":826,"height":12}},{"id":"93690105-5e98-46fd-b035-7f9d5f775429","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":60,"box":{"x":69,"y":460,"width":825,"height":12}},{"id":"02764273-4bdc-44cb-823c-d02e58b643a0","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":60,"box":{"x":70,"y":475,"width":791,"height":12}},{"id":"bab8391b-6172-4b3a-a674-500f7945ff29","block_type":"box","text":"obligations to the clearinghouse simultaneously with a customer’s failure to meet its obligations to the clearing","page_number":60,"box":{"x":69,"y":491,"width":793,"height":11}},{"id":"40efb376-c5d8-4a50-bd0b-26976bf64376","block_type":"box","text":"member.","page_number":60,"box":{"x":69,"y":506,"width":60,"height":9}},{"id":"526597d7-93de-4613-92af-82826452bafb","block_type":"box","text":"Clearing member FCMs are required to post initial margin to the clearinghouses through which they clear their","page_number":60,"box":{"x":102,"y":529,"width":782,"height":11}},{"id":"cb2b66b2-5fe6-4c6a-b418-cf5b0358b89e","block_type":"box","text":"customers’ cleared OTC derivatives and futures contracts, instead of using such initial margin in their businesses, as","page_number":60,"box":{"x":69,"y":543,"width":837,"height":12}},{"id":"4effffa4-1798-431d-a43b-ea9390a50947","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":60,"box":{"x":68,"y":559,"width":811,"height":11}},{"id":"55c3525b-15b7-4fd9-b254-fbe0d7232cb4","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":60,"box":{"x":69,"y":574,"width":838,"height":11}},{"id":"6c5f985f-4c0c-4888-87cd-94e09c61b0d4","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":60,"box":{"x":70,"y":589,"width":754,"height":11}},{"id":"27a79d20-3585-461b-b291-5a53921a0852","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":60,"box":{"x":69,"y":604,"width":815,"height":11}},{"id":"132388f3-dce6-495f-a20f-8b458d1d82d8","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":60,"box":{"x":70,"y":619,"width":817,"height":11}},{"id":"58892f38-7896-4642-8f93-a109d83a0a78","block_type":"box","text":"FCMs to charge higher fees, or provide less favorable pricing on cleared OTC derivatives than swap dealers will","page_number":60,"box":{"x":70,"y":634,"width":788,"height":12}},{"id":"6fcdc186-7a90-41c7-bea1-038a3c5f5cef","block_type":"box","text":"provide for non-cleared OTC derivatives. Fur thermore, customers, including the Funds, are subject to additional fees","page_number":60,"box":{"x":70,"y":649,"width":825,"height":12}},{"id":"ac5743d1-1c5f-48aa-8d12-cba8a981cf3a","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":60,"box":{"x":70,"y":664,"width":829,"height":12}},{"id":"9f1fab99-e69f-493b-b6bb-55d67b560379","block_type":"box","text":"to trading non-cleared OTC derivatives bilaterally.","page_number":60,"box":{"x":68,"y":680,"width":346,"height":11}},{"id":"76a656da-b64d-470a-85e8-6dd366505a3b","block_type":"box","text":"With respect to uncleared swaps, registered swap dealers and security-based swap dealers are required to","page_number":60,"box":{"x":101,"y":703,"width":762,"height":11}},{"id":"5b8d24df-5223-49e9-a2f8-d82da2798548","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":60,"box":{"x":69,"y":718,"width":820,"height":11}},{"id":"9ee06110-0f45-4d51-962a-8414dd01c662","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":60,"box":{"x":69,"y":732,"width":816,"height":12}},{"id":"5736f09d-7f86-4be9-9364-3edaee078752","block_type":"box","text":"subject to applicable regulatory haircuts and other restrictions. Shares of investment companies (other than cer tain","page_number":60,"box":{"x":69,"y":748,"width":825,"height":11}},{"id":"cdd5da16-2b9b-41c7-8fe9-0663aa32b249","block_type":"box","text":"money market funds) may not be posted as collateral under applicable regulations.","page_number":60,"box":{"x":69,"y":763,"width":590,"height":11}},{"id":"963dcacd-ab6e-4013-803c-d60415e7f457","block_type":"box","text":"The CFTC, cer tain foreign regulators, and many futures exchanges have established (and continue to evaluate","page_number":60,"box":{"x":101,"y":785,"width":783,"height":12}},{"id":"949374ac-4172-43c4-b585-f52cc2ce0c83","block_type":"box","text":"and monitor) speculative position limits (“position limits”) on the maximum speculative position which any person, or","page_number":60,"box":{"x":69,"y":801,"width":833,"height":11}},{"id":"7bbe4d46-205d-4f6d-b4c9-379faf81fc1f","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":60,"box":{"x":68,"y":816,"width":837,"height":11}},{"id":"28a2ad83-6ad3-43d7-8463-1af1276b79ce","block_type":"box","text":"apply to swaps that are economically equivalent to futures contracts on cer tain agricultural, metals and energy","page_number":60,"box":{"x":69,"y":831,"width":789,"height":11}},{"id":"b202085d-9b28-4d01-85df-e02c99488a57","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":60,"box":{"x":69,"y":846,"width":818,"height":11}},{"id":"7fbbfda1-ce20-495e-8d35-fc53c1dd320f","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":60,"box":{"x":69,"y":861,"width":801,"height":11}},{"id":"6dc11b0f-074c-4cb8-bfaf-17e2609fe830","block_type":"box","text":"applicable position limits, it is possible that different clients managed by the Manager and its affiliates may be","page_number":60,"box":{"x":69,"y":876,"width":791,"height":11}},{"id":"4206d147-8ed5-4eea-96f7-71f6ff8d95c6","block_type":"box","text":"aggregated for this purpose. Therefore, the trading decisions of the Manager may have to be modified and positions","page_number":60,"box":{"x":69,"y":891,"width":827,"height":12}},{"id":"887b06e8-acde-4018-a034-b21dc4188f45","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":60,"box":{"x":69,"y":906,"width":805,"height":12}},{"id":"4e39272a-2392-4784-b91c-38321c1d14cb","block_type":"box","text":"II-14","page_number":60,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"5784188d-342e-40b4-bfea-18263084eabf","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":60,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"84c69fa3-e227-4477-bbf9-3d6684de80e3","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":61,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"b2b9fb86-4af1-4124-9070-95a13abc66ae","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":61,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"4cc31805-1ba7-4d7b-89d8-d282cfa3fb42","block_type":"box","text":"by other regimes, including those of the European Union and United Kingdom, and trading venues that impose","page_number":61,"box":{"x":69,"y":75,"width":785,"height":11}},{"id":"fe45c157-9834-4759-b759-e024c64e02b5","block_type":"box","text":"position limits on commodity derivative contracts.","page_number":61,"box":{"x":70,"y":90,"width":350,"height":11}},{"id":"b372f37e-bc49-4f6a-a826-48bf3037c39f","block_type":"box","text":"Additional Regulation of Derivatives.","page_number":61,"box":{"x":101,"y":113,"width":256,"height":11}},{"id":"5c9fcd56-d564-45d0-b7a6-c1c0428d1f7c","block_type":"box","text":"Regulatory bodies outside the U.S. have also passed, proposed, or may","page_number":61,"box":{"x":364,"y":113,"width":513,"height":11}},{"id":"c34ff559-53a2-4242-9780-e5d8a157d774","block_type":"box","text":"propose in the future, legislation similar to Dodd-Frank or other legislation that could increase the costs of","page_number":61,"box":{"x":70,"y":128,"width":757,"height":11}},{"id":"0b7ac2aa-7465-4cef-a6fa-5f7b1447e8ca","block_type":"box","text":"par ticipating in, or otherwise adversely impact the liquidity of, par ticipating in the commodities markets. For example,","page_number":61,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"e1b9366b-95c3-459f-a8bf-6594f7f58eed","block_type":"box","text":"the European Market Infrastructure Regulation (Regulation (EU) No 648/2012) (“EMIR”) introduced cer tain","page_number":61,"box":{"x":68,"y":158,"width":762,"height":11}},{"id":"92ab1f80-415c-4060-b90e-46ffba78c45d","block_type":"box","text":"requirements in respect of OTC derivatives including: (i) the mandatory clearing of OTC derivative contracts declared","page_number":61,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"84e7757c-b64d-4f08-a3f6-ecde89f7b9fe","block_type":"box","text":"subject to the clearing obligation; (ii) risk mitigation techniques in respect of uncleared OTC derivative contracts,","page_number":61,"box":{"x":69,"y":188,"width":798,"height":12}},{"id":"934d9c08-d749-4489-b1e9-ece76924a49b","block_type":"box","text":"including the mandatory margining of uncleared OTC derivative contracts; and (iii) repor ting and recordkeeping","page_number":61,"box":{"x":70,"y":203,"width":785,"height":12}},{"id":"d3cfd48c-e556-4e43-b455-91f21ce22142","block_type":"box","text":"requirements in respect of all derivatives contracts. By way of fur ther example, the European Union Markets in","page_number":61,"box":{"x":69,"y":218,"width":787,"height":12}},{"id":"5a90433e-8883-4e6b-b5f6-6c1569a16b32","block_type":"box","text":"Financial Instruments Directive (Directive 2014/65/EU) and Markets in Financial Instruments Regulation (Regulation","page_number":61,"box":{"x":70,"y":234,"width":830,"height":11}},{"id":"1de5b86c-a8a7-4512-ac3a-d2712620283d","block_type":"box","text":"(EU) No 600/2014) (together “MiFID II”), which have applied since January 3, 2018, govern the provision of","page_number":61,"box":{"x":69,"y":249,"width":771,"height":11}},{"id":"ade3139e-d782-4627-82e4-3e366a403755","block_type":"box","text":"investment services and activities in relation to, as well as the organized trading of, financial instruments such as","page_number":61,"box":{"x":70,"y":264,"width":812,"height":11}},{"id":"b9f53c6f-178b-4984-8661-e202b68ed87b","block_type":"box","text":"shares, bonds, units in collective investment schemes and derivatives. In par ticular, MiFID II requires European Union","page_number":61,"box":{"x":69,"y":279,"width":839,"height":11}},{"id":"726d502a-17de-427b-a0dc-87cefa11463d","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":61,"box":{"x":70,"y":294,"width":793,"height":11}},{"id":"5086c805-ec09-48c0-9b3a-215b7188c616","block_type":"box","text":"derivatives traded on European Union trading venues and in “economically equivalent” OTC contracts. If the","page_number":61,"box":{"x":69,"y":309,"width":765,"height":11}},{"id":"01852087-5ca9-443c-8a89-a0c9cd87539b","block_type":"box","text":"requirements of EMIR and MiFID II apply, the cost of derivatives transactions is expected to increase.","page_number":61,"box":{"x":69,"y":324,"width":720,"height":11}},{"id":"04e54f4d-090b-4cc9-8983-bcc173828db4","block_type":"box","text":"In addition, regulations adopted by global prudential regulators that are now in effect require cer tain prudentially","page_number":61,"box":{"x":102,"y":347,"width":802,"height":11}},{"id":"24fd9066-a619-4332-90c6-0d12ec465d8c","block_type":"box","text":"regulated entities and cer tain of their affiliates and subsidiaries (including swap dealers) to include in their","page_number":61,"box":{"x":69,"y":362,"width":762,"height":11}},{"id":"8e549cd8-0f8b-4f1a-be80-86bcb6e41994","block_type":"box","text":"derivatives contracts and cer tain other financial contracts, terms that delay or restrict the rights of counterpar ties","page_number":61,"box":{"x":69,"y":377,"width":810,"height":12}},{"id":"c350f2e9-9e66-4e59-a7ee-49ec05a1cc05","block_type":"box","text":"(such as the Funds) to terminate such contracts, foreclose upon collateral, exercise other default rights or restrict","page_number":61,"box":{"x":69,"y":392,"width":812,"height":12}},{"id":"1a3480a0-7023-4a9b-a3f8-4b1e6dafe7e4","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":61,"box":{"x":68,"y":407,"width":787,"height":12}},{"id":"ce3d883a-16d8-414e-b5cb-14910f1006be","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":61,"box":{"x":69,"y":423,"width":810,"height":11}},{"id":"6fb3945c-de08-46a8-933e-558afccd0cd2","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":61,"box":{"x":67,"y":438,"width":795,"height":11}},{"id":"1979c47c-181c-42a7-9594-f5307752ed55","block_type":"box","text":"Kingdom and the European Union, governmental authorities could reduce, eliminate or conver t to equity the liabilities","page_number":61,"box":{"x":70,"y":453,"width":835,"height":11}},{"id":"516ac24f-419f-42ec-b214-f3f9ad480591","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":61,"box":{"x":68,"y":468,"width":839,"height":11}},{"id":"41258e61-a2b2-43ce-9b89-01d3123fd144","block_type":"box","text":"these requirements, as well as potential additional related government regulation, could adversely affect a Fund’s","page_number":61,"box":{"x":68,"y":483,"width":814,"height":11}},{"id":"2821209d-dfcb-4c0f-bd2e-8f05dc193b86","block_type":"box","text":"ability to terminate existing derivatives contracts, exercise default rights or satisfy obligations owed to it with","page_number":61,"box":{"x":69,"y":498,"width":773,"height":11}},{"id":"b4dcd1ac-970d-4c87-ac21-bfca30388f75","block_type":"box","text":"collateral received under such contracts.","page_number":61,"box":{"x":69,"y":514,"width":288,"height":8}},{"id":"2bc9aa19-e33c-4827-b414-c4f15795d266","block_type":"box","text":"Risk Factors in Derivatives.","page_number":61,"box":{"x":102,"y":536,"width":191,"height":9}},{"id":"5c517eef-d72f-4c5b-adbd-aa5baf5161a1","block_type":"box","text":"There are significant risks that apply generally to derivatives transactions, including:","page_number":61,"box":{"x":101,"y":559,"width":597,"height":11}},{"id":"0d9f530f-6a96-47cc-b9b9-92d743098b4a","block_type":"box","text":"Correlation Risk","page_number":61,"box":{"x":102,"y":581,"width":114,"height":9}},{"id":"12fc1836-6370-40ff-ae06-242a6f7ba433","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":61,"box":{"x":220,"y":581,"width":668,"height":12}},{"id":"be2f1c14-2b0c-401c-b64c-ce5674c308d4","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":61,"box":{"x":68,"y":596,"width":837,"height":12}},{"id":"bc18fe8a-c76d-4c4d-b705-f9a4ea8b2700","block_type":"box","text":"There are a number of factors which may prevent a derivative instrument from achieving the desired correlation (or","page_number":61,"box":{"x":68,"y":612,"width":818,"height":11}},{"id":"e1835944-b20d-4dc4-bee6-7b647dee82d2","block_type":"box","text":"inverse correlation) with an underlying asset, rate or index, such as the impact of fees, expenses and transaction","page_number":61,"box":{"x":70,"y":627,"width":806,"height":11}},{"id":"995c8c06-4d5c-46ad-a92c-e419f29dbf87","block_type":"box","text":"costs, the timing of pricing, and disruptions or illiquidity in the markets for such derivative instrument.","page_number":61,"box":{"x":69,"y":642,"width":725,"height":11}},{"id":"8bb077e6-bc5e-4d67-b024-2b930228f658","block_type":"box","text":"Counterpar ty Risk","page_number":61,"box":{"x":102,"y":665,"width":128,"height":11}},{"id":"400d72a0-f91c-423d-8cd2-2796c095f37c","block_type":"box","text":"— the risk that a derivatives transaction counterpar ty will be unable or unwilling to make","page_number":61,"box":{"x":233,"y":665,"width":632,"height":11}},{"id":"dd488f5d-bc63-47cb-a4c2-9a1952092608","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":61,"box":{"x":70,"y":680,"width":830,"height":11}},{"id":"4f5adc56-38f8-4043-8cf2-ed9412ec379c","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":61,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"7f117dd0-ba41-4326-a3a4-76fe5a3a00d8","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":61,"box":{"x":69,"y":710,"width":834,"height":11}},{"id":"6330bde0-e9c1-44f7-b8a8-8ab5ccb42f2b","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":61,"box":{"x":70,"y":725,"width":831,"height":11}},{"id":"f241ec27-92ce-4891-91f6-d5340f39776c","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":61,"box":{"x":69,"y":740,"width":806,"height":11}},{"id":"87d459c1-6aa3-4a6b-b3f8-2afb21532714","block_type":"box","text":"engaging in OTC derivatives transactions only with creditwor thy entities that have substantial capital or that have","page_number":61,"box":{"x":69,"y":755,"width":803,"height":11}},{"id":"dce2a0b3-4ddd-4cd9-808a-38393d22f57f","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":61,"box":{"x":70,"y":771,"width":760,"height":11}},{"id":"76cdbaa2-c589-45f7-a701-a37545552407","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":61,"box":{"x":68,"y":785,"width":819,"height":12}},{"id":"32a72cc1-4019-4e14-b444-ade318c9a592","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":61,"box":{"x":69,"y":801,"width":834,"height":11}},{"id":"7fadde0b-bd3a-42a9-9d0c-53c669fa26dc","block_type":"box","text":"with respect to derivatives that are centrally cleared is concentrated in a few clearing houses and increasingly fewer","page_number":61,"box":{"x":68,"y":816,"width":826,"height":11}},{"id":"4c170505-215f-49c3-9555-c9fe1f809807","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":61,"box":{"x":69,"y":831,"width":805,"height":11}},{"id":"1d9d72f3-6dc9-4ab4-aa8d-8082d91589ff","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":61,"box":{"x":70,"y":846,"width":824,"height":11}},{"id":"5eed727a-5e9c-41b5-8d13-543fe2bc34b4","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":61,"box":{"x":70,"y":861,"width":816,"height":11}},{"id":"93936c98-61e1-42a3-8835-74005252e9ef","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":61,"box":{"x":70,"y":876,"width":771,"height":11}},{"id":"9a0edb79-7085-41a7-9726-0e8cc5fbede9","block_type":"box","text":"derivatives. Although a clearing member is required to segregate assets from customers with respect to cleared","page_number":61,"box":{"x":69,"y":891,"width":797,"height":12}},{"id":"6bbfc76d-cd79-4939-8c36-d3c0b1e4dec5","block_type":"box","text":"derivatives positions from the clearing member’s proprietary assets, if a clearing member does not comply with the","page_number":61,"box":{"x":69,"y":906,"width":822,"height":12}},{"id":"53a6f8c2-45b3-4dad-97b1-9df08f8f09e7","block_type":"box","text":"II-15","page_number":61,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"501c89e5-bf67-4b5c-9994-ca7cd51733c9","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":61,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"33200644-895e-47cb-b094-5c16a25e3259","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":62,"box":{"x":69,"y":45,"width":829,"height":11}},{"id":"24c0828d-1e74-4da0-bb02-0b072441f001","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":62,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"176bb9c6-9a0c-4246-b0b9-f040b34ccfd8","block_type":"box","text":"by the clearing member.","page_number":62,"box":{"x":69,"y":75,"width":169,"height":11}},{"id":"c0765671-6ba9-4084-ba69-076bd0ca720a","block_type":"box","text":"Credit Risk","page_number":62,"box":{"x":102,"y":98,"width":78,"height":9}},{"id":"b599ab8c-8b4e-4779-8ed5-26e126f64983","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":62,"box":{"x":184,"y":98,"width":698,"height":11}},{"id":"998ccac7-7765-4d5d-a027-ebcb7c5c2332","block_type":"box","text":"honor its financial obligations.","page_number":62,"box":{"x":69,"y":113,"width":213,"height":11}},{"id":"727acab3-ab8d-4a46-a74a-fc347bb123b6","block_type":"box","text":"Currency Risk","page_number":62,"box":{"x":102,"y":135,"width":98,"height":11}},{"id":"18c8225c-524e-4fce-ba99-15ededf2dc57","block_type":"box","text":"— the risk that changes in the exchange rate between two currencies will adversely affect the","page_number":62,"box":{"x":204,"y":135,"width":669,"height":12}},{"id":"2715bee4-4836-44c3-b068-2f3cdd01138b","block_type":"box","text":"value (in U.S. dollar terms) of a derivative.","page_number":62,"box":{"x":68,"y":150,"width":300,"height":11}},{"id":"1eaccf60-2c32-469f-9a97-ad5d6b42dbab","block_type":"box","text":"Illiquidity Risk","page_number":62,"box":{"x":102,"y":173,"width":98,"height":11}},{"id":"56a6ca7f-86e5-47ef-b028-c94c067f7bbf","block_type":"box","text":"— the risk that cer tain securities or instruments may be difficult or impossible to sell at the time","page_number":62,"box":{"x":204,"y":173,"width":693,"height":11}},{"id":"b0946b10-2c1a-4307-9510-db1ce3b88e53","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":62,"box":{"x":69,"y":188,"width":814,"height":12}},{"id":"f309e7de-a6e1-4872-a046-cce57ae266ba","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":62,"box":{"x":69,"y":203,"width":799,"height":12}},{"id":"f6b3a7f4-758f-42b0-904c-3c5ecb0aa886","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":62,"box":{"x":69,"y":218,"width":799,"height":12}},{"id":"74447b97-7232-48e1-8f70-b171721b9880","block_type":"box","text":"incurring substantial losses (if at all). Cer tain OTC derivatives, including swaps and OTC options, involve substantial","page_number":62,"box":{"x":70,"y":234,"width":824,"height":11}},{"id":"de8a9c5b-012c-4424-bbca-12de76004fbb","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":62,"box":{"x":70,"y":249,"width":830,"height":11}},{"id":"2ae12535-ae32-4cb3-8161-20c898cab03b","block_type":"box","text":"Fund will, therefore, acquire illiquid OTC derivatives (i) if the agreement pursuant to which the instrument is","page_number":62,"box":{"x":70,"y":264,"width":762,"height":11}},{"id":"f0e54167-49b7-4538-977f-d64d111c57d5","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":62,"box":{"x":70,"y":279,"width":827,"height":11}},{"id":"229e9dd2-49e0-4e0c-a073-f8a11b83873a","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":62,"box":{"x":69,"y":294,"width":816,"height":11}},{"id":"abba6fe6-0e7d-48b3-a3ba-82106fe420aa","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":62,"box":{"x":68,"y":309,"width":831,"height":11}},{"id":"cd30f8fa-2fff-447f-a375-a225821871c7","block_type":"box","text":"markets may be due to various factors, including congestion, disorderly markets, limitations on deliverable supplies,","page_number":62,"box":{"x":69,"y":324,"width":828,"height":12}},{"id":"127a4ece-91f0-405e-b447-9b5b094f73a2","block_type":"box","text":"the par ticipation of speculators, government regulation and intervention, and technical and operational or system","page_number":62,"box":{"x":68,"y":339,"width":809,"height":12}},{"id":"44a6b499-58f4-4692-b4a8-d936e11bdd01","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":62,"box":{"x":68,"y":355,"width":826,"height":11}},{"id":"49a76181-639f-4dba-9eac-c75ad45fb673","block_type":"box","text":"“daily price fluctuation limits” established by the exchanges which limit the amount of fluctuation in an exchange","page_number":62,"box":{"x":70,"y":370,"width":806,"height":11}},{"id":"0384955e-5840-4297-815a-7eae21876544","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":62,"box":{"x":68,"y":385,"width":838,"height":11}},{"id":"54a1a5ab-fbd4-41fa-95c3-1b853a39eb25","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":62,"box":{"x":69,"y":400,"width":827,"height":11}},{"id":"d7401d9a-5177-4f8f-a8d3-cb08ae6b2ec6","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":62,"box":{"x":69,"y":415,"width":828,"height":11}},{"id":"d760fb8b-5f36-4b3a-acc8-16f84e148f20","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":62,"box":{"x":69,"y":430,"width":796,"height":11}},{"id":"f0364325-42e1-4da6-b987-02f858235366","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":62,"box":{"x":70,"y":445,"width":759,"height":12}},{"id":"1c4b9e3d-feb5-4044-9336-a27125f30ec2","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":62,"box":{"x":70,"y":460,"width":837,"height":12}},{"id":"c3cc48b9-e8ac-4b98-9ac1-b8b97ae1ea9d","block_type":"box","text":"may be disadvantageous to do so.","page_number":62,"box":{"x":69,"y":476,"width":243,"height":11}},{"id":"bbb4bb1f-e76d-4132-8108-65fc1bd71a7e","block_type":"box","text":"Index Risk","page_number":62,"box":{"x":102,"y":498,"width":73,"height":9}},{"id":"83e1e4ad-88df-4d60-8538-cd2e31819c4b","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":62,"box":{"x":179,"y":498,"width":714,"height":11}},{"id":"f29d856a-1f21-46fc-a58b-5e4cca93bc20","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":62,"box":{"x":68,"y":513,"width":800,"height":12}},{"id":"b765e955-8791-44ae-95b5-d5e6b55afd47","block_type":"box","text":"reduction in the value of the derivative to below the price that the Fund paid for such derivative.","page_number":62,"box":{"x":69,"y":528,"width":678,"height":11}},{"id":"5e5f9102-0c0c-4b65-bc1a-715e1bd13d4b","block_type":"box","text":"Legal Risk","page_number":62,"box":{"x":102,"y":551,"width":73,"height":11}},{"id":"8916e869-12ce-4ee8-a11d-304651bfae22","block_type":"box","text":"— the risk of insufficient documentation, insufficient capacity or authority of counterpar ty, or legality","page_number":62,"box":{"x":179,"y":551,"width":717,"height":11}},{"id":"ff605563-b671-434e-8cd9-76a9b7bde689","block_type":"box","text":"or enforceability of a contract.","page_number":62,"box":{"x":69,"y":566,"width":211,"height":11}},{"id":"adea68d9-6af1-4e11-a476-58daa01baee0","block_type":"box","text":"Leverage Risk","page_number":62,"box":{"x":102,"y":589,"width":99,"height":11}},{"id":"b19e497a-282f-4c93-900d-a8b18e20c9e9","block_type":"box","text":"— the risk that a Fund’s derivatives transactions can magnify the Fund’s gains and losses.","page_number":62,"box":{"x":205,"y":589,"width":648,"height":11}},{"id":"f95bf238-4548-431b-a5e7-85612a4042ff","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":62,"box":{"x":70,"y":604,"width":823,"height":11}},{"id":"b5134349-04db-42f7-b587-871df34612a8","block_type":"box","text":"in losses that greatly exceed the amount originally invested.","page_number":62,"box":{"x":70,"y":619,"width":425,"height":11}},{"id":"b333dc5b-0ee1-4920-a19c-736d6d04e02f","block_type":"box","text":"Market Risk","page_number":62,"box":{"x":102,"y":642,"width":85,"height":9}},{"id":"34f126b1-cd42-4ccf-a508-6b6c95727692","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":62,"box":{"x":191,"y":642,"width":716,"height":11}},{"id":"cff25875-5687-4a15-b345-2f985ba88772","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":62,"box":{"x":68,"y":657,"width":833,"height":11}},{"id":"5067856f-4e90-4f5a-a2dd-d2e0926e5179","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":62,"box":{"x":69,"y":672,"width":794,"height":11}},{"id":"368f0c04-4c0d-4fac-b1c7-c3de00c1af15","block_type":"box","text":"affected.","page_number":62,"box":{"x":69,"y":687,"width":62,"height":9}},{"id":"27c34711-71fa-4611-8c15-0a61d24aa4a0","block_type":"box","text":"Operational Risk","page_number":62,"box":{"x":102,"y":710,"width":117,"height":11}},{"id":"835ca369-1011-445f-b190-4178ec1cfa34","block_type":"box","text":"— the risk related to potential operational issues, including documentation issues, settlement","page_number":62,"box":{"x":223,"y":710,"width":674,"height":11}},{"id":"827646d5-b91e-4515-adb9-27d08bfdbc03","block_type":"box","text":"issues, systems failures, inadequate controls and human error.","page_number":62,"box":{"x":70,"y":725,"width":451,"height":11}},{"id":"086a0677-d14e-46b9-a526-0bb31bc9bba3","block_type":"box","text":"Valuation Risk","page_number":62,"box":{"x":103,"y":748,"width":99,"height":9}},{"id":"1415b2d8-1f9f-4b02-b6f4-062eca6a81f8","block_type":"box","text":"— the risk that valuation sources for a derivative will not be readily available in the market. This is","page_number":62,"box":{"x":206,"y":748,"width":701,"height":11}},{"id":"6b5cde20-36c0-4229-ac1a-e1028c930640","block_type":"box","text":"possible especially in times of market distress, since many market par ticipants may be reluctant to purchase","page_number":62,"box":{"x":70,"y":763,"width":779,"height":11}},{"id":"634f2581-af38-44ce-b292-55936e42d209","block_type":"box","text":"complex instruments or quote prices for them.","page_number":62,"box":{"x":69,"y":778,"width":329,"height":11}},{"id":"693987ee-b61e-4842-b9a4-00aea5b66cd9","block_type":"box","text":"Volatility Risk","page_number":62,"box":{"x":103,"y":801,"width":93,"height":11}},{"id":"5ac811fe-d009-413f-a4ac-cfac6d953fa7","block_type":"box","text":"— the risk that the value of derivatives will fluctuate significantly within a shor t time period.","page_number":62,"box":{"x":200,"y":801,"width":652,"height":11}},{"id":"98177aa9-fd2b-4d6a-aee0-381be5713bd6","block_type":"box","text":"Types of Derivatives Transactions.","page_number":62,"box":{"x":103,"y":823,"width":240,"height":11}},{"id":"bebae7dc-a96c-4daf-b9e3-f00818ee5287","block_type":"box","text":"A Fund may enter into derivatives transactions in accordance with its investment guidelines and restrictions,","page_number":62,"box":{"x":101,"y":846,"width":771,"height":11}},{"id":"9c6a11e8-e8d9-485d-9d79-808118b016fb","block_type":"box","text":"including the following:","page_number":62,"box":{"x":70,"y":861,"width":159,"height":11}},{"id":"f1a4762b-8a89-457a-80de-558a711dcbc5","block_type":"box","text":"Futures.","page_number":62,"box":{"x":102,"y":884,"width":56,"height":9}},{"id":"64286a0c-3a93-4168-b3d7-3b395fb45bda","block_type":"box","text":"II-16","page_number":62,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f1aa4876-7bca-402a-9eb5-352cd64aa22b","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":62,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6c4d56d1-8a94-45a8-96ea-cc3231494c4b","block_type":"box","text":"A Fund may enter into futures contracts (“futures”) and options on futures contracts. Futures are standardized,","page_number":63,"box":{"x":101,"y":45,"width":791,"height":11}},{"id":"e1ab3b89-d343-4fb4-a174-0bc8a8a9106a","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":63,"box":{"x":69,"y":60,"width":799,"height":11}},{"id":"58c49cd2-9421-4bd5-ae52-c8ccb2748fe8","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":63,"box":{"x":69,"y":75,"width":800,"height":11}},{"id":"f3d66924-8f5d-4979-9feb-5cff2ca8e84d","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":63,"box":{"x":69,"y":90,"width":838,"height":11}},{"id":"e10d7770-1d35-45c7-933c-538dad6c4487","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":63,"box":{"x":69,"y":105,"width":820,"height":11}},{"id":"e38ae5af-5b64-4e56-864a-a331d2d48112","block_type":"box","text":"applicable, based on the mark-to-market movement of the contract.","page_number":63,"box":{"x":69,"y":120,"width":478,"height":11}},{"id":"8526c09c-e1b0-4977-b561-8274b5138e5e","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":63,"box":{"x":101,"y":143,"width":801,"height":11}},{"id":"0c6c7dfd-1547-421d-859c-9a71f2617d39","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":63,"box":{"x":69,"y":158,"width":829,"height":11}},{"id":"e78104e6-da15-4b92-b9ce-5a3eb1f53b71","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":63,"box":{"x":70,"y":173,"width":822,"height":11}},{"id":"91099d23-7d88-4190-ae8c-38fa5e138d34","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":63,"box":{"x":68,"y":188,"width":830,"height":12}},{"id":"f6781a8c-0695-4669-a41e-7b144d785693","block_type":"box","text":"of the futures contract.","page_number":63,"box":{"x":69,"y":203,"width":162,"height":9}},{"id":"3144d73a-1676-4754-b42f-4556a04a2d8d","block_type":"box","text":"The purchase of a futures contract may provide a Fund a lower cost alternative to purchasing securities or","page_number":63,"box":{"x":101,"y":226,"width":756,"height":11}},{"id":"f4666bd8-9069-4229-9896-af5a740af41a","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":63,"box":{"x":69,"y":241,"width":820,"height":11}},{"id":"d59ae02b-e361-4420-bf71-3181cb42e61f","block_type":"box","text":"complete an anticipatory hedge transaction relating to a futures contract, however, the Fund may realize a loss","page_number":63,"box":{"x":69,"y":256,"width":789,"height":12}},{"id":"ae2cc383-e54d-438a-900d-426017259a56","block_type":"box","text":"relating to the futures position.","page_number":63,"box":{"x":69,"y":271,"width":219,"height":12}},{"id":"87912217-f544-46cd-b728-d30fea649a0b","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":63,"box":{"x":102,"y":294,"width":757,"height":11}},{"id":"62c3e56f-5ad1-42d8-8c41-ab195885fbcc","block_type":"box","text":"required to liquidate positions or may not be able to fully implement trading instructions. Any such liquidation or","page_number":63,"box":{"x":69,"y":309,"width":797,"height":11}},{"id":"181116a5-dbd9-438d-ba39-8bc9df61a496","block_type":"box","text":"limited implementation could result in substantial costs to a Fund. See “—Regulation of Derivatives — Dodd-Frank","page_number":63,"box":{"x":70,"y":324,"width":816,"height":12}},{"id":"5d916955-d33f-4e3c-9263-7d7f05f8b3e9","block_type":"box","text":"Regulations” above.","page_number":63,"box":{"x":70,"y":340,"width":140,"height":11}},{"id":"33d78e67-41d3-4019-b130-f6d69321048a","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":63,"box":{"x":101,"y":362,"width":799,"height":11}},{"id":"bb49ea8d-59ac-4284-8e3b-74fccbf2fab2","block_type":"box","text":"and stock indices. Generally, these strategies would be used under the same market and market sector conditions","page_number":63,"box":{"x":69,"y":377,"width":818,"height":12}},{"id":"52665634-aeee-49ab-a330-487a9982fa67","block_type":"box","text":"(","page_number":63,"box":{"x":69,"y":393,"width":3,"height":10}},{"id":"e5b15fdb-a0bc-4857-8c0e-08c99baa6327","block_type":"box","text":"i.e.","page_number":63,"box":{"x":74,"y":393,"width":21,"height":8}},{"id":"5c421466-1942-439c-8fd3-d3a17b7eca74","block_type":"box","text":", conditions relating to specific types of investments) in which the Fund entered into futures transactions. A Fund","page_number":63,"box":{"x":97,"y":392,"width":803,"height":12}},{"id":"b5cf51b1-30b5-400c-9e75-ef6567bd1c05","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":63,"box":{"x":69,"y":407,"width":830,"height":12}},{"id":"2ea65c90-3e7b-4357-8ae7-d97fa86b93c0","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":63,"box":{"x":68,"y":423,"width":835,"height":11}},{"id":"3c054c94-c80c-43a1-843c-cadb6ed7b14b","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":63,"box":{"x":69,"y":438,"width":831,"height":11}},{"id":"dca3c5b5-3250-4110-99b6-2d259310beba","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":63,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"2af827f0-65a0-4ed6-a7df-21b99c13d08f","block_type":"box","text":"Fund intends to purchase.","page_number":63,"box":{"x":70,"y":468,"width":183,"height":11}},{"id":"d04566ba-e11a-4688-8ac7-acc96ffe539f","block_type":"box","text":"To maintain greater flexibility, a Fund may invest in instruments which have characteristics similar to futures","page_number":63,"box":{"x":101,"y":491,"width":768,"height":11}},{"id":"ec149cec-a8cb-4f03-aedd-729766a536f9","block_type":"box","text":"contracts. These instruments may take a variety of forms, such as debt securities with interest or principal payments","page_number":63,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"2b488839-66fe-402b-8e06-a0de65e03473","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":63,"box":{"x":69,"y":521,"width":839,"height":11}},{"id":"8857cf2f-90eb-4150-95ce-0a86c16229a1","block_type":"box","text":"risks of such investments could reflect the risks of investing in futures and securities, including volatility and","page_number":63,"box":{"x":69,"y":536,"width":773,"height":11}},{"id":"7f782b94-d046-4d45-a639-1f226e843798","block_type":"box","text":"illiquidity.","page_number":63,"box":{"x":70,"y":551,"width":63,"height":11}},{"id":"239611e9-832c-455d-b71a-05714f88a590","block_type":"box","text":"Futures contracts and options on futures contracts are subject to significant correlation risk, leverage risk,","page_number":63,"box":{"x":102,"y":574,"width":757,"height":11}},{"id":"5676ccea-b6b3-4445-b579-21ecef36c3db","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":63,"box":{"x":70,"y":589,"width":807,"height":11}},{"id":"a2db4b9f-ac52-4159-8b8e-6c17cb9810f0","block_type":"box","text":"“—Risk Factors in Derivatives” above.","page_number":63,"box":{"x":70,"y":604,"width":269,"height":9}},{"id":"75a94c26-0762-4750-ad83-44ca3deb95be","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":63,"box":{"x":102,"y":627,"width":791,"height":11}},{"id":"fad05fb7-3522-41c3-85e7-20cd558db997","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":63,"box":{"x":69,"y":642,"width":838,"height":11}},{"id":"46f35218-713f-4b17-abc5-f2eb5ee6bd5d","block_type":"box","text":"can be emitted by regulated entities, such as manufacturers or energy producers. The regulator then may issue or","page_number":63,"box":{"x":69,"y":657,"width":814,"height":11}},{"id":"373cf804-f7d9-4fcf-875c-6b01ec3d0431","block_type":"box","text":"sell individual “emission allowances” to regulated entities, which can then be traded on the open market. Commodity","page_number":63,"box":{"x":69,"y":672,"width":837,"height":11}},{"id":"6409e0c4-d36c-4f23-80b8-e656d9c8e2fe","block_type":"box","text":"futures contracts linked to the value of emission allowances are known as “carbon futures.”","page_number":63,"box":{"x":68,"y":687,"width":657,"height":9}},{"id":"c39ae243-034e-41d0-bfb0-70b6c6a7fc5b","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":63,"box":{"x":101,"y":710,"width":792,"height":11}},{"id":"a4d2ec1d-8c06-489d-9ad4-17853183e046","block_type":"box","text":"for carbon futures contracts. Changes in law, market conditions and expectations, position limits, collateral","page_number":63,"box":{"x":68,"y":725,"width":764,"height":11}},{"id":"9950afcc-880f-412a-8fce-3822f9d41968","block_type":"box","text":"requirements, and other factors each can impact the supply of and demand for carbon futures contracts. The market","page_number":63,"box":{"x":69,"y":740,"width":832,"height":11}},{"id":"d5308177-08a6-45dd-95b7-f7d48e00121c","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":63,"box":{"x":68,"y":755,"width":841,"height":11}},{"id":"f04ada37-4425-418c-a68a-55c2af9266e0","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":63,"box":{"x":69,"y":770,"width":819,"height":11}},{"id":"c5e336a7-d3ae-4779-923e-01938eab3fa6","block_type":"box","text":"difficult to find a counterpar ty willing to transact at a reasonable price and sufficient size.","page_number":63,"box":{"x":69,"y":785,"width":637,"height":12}},{"id":"7e9316a7-d982-4763-855f-5fee5babc2c3","block_type":"box","text":"Swap Agreements.","page_number":63,"box":{"x":102,"y":808,"width":131,"height":11}},{"id":"bfcc546b-0c4c-4f7e-b94c-4a5fc290f25b","block_type":"box","text":"A Fund may enter into swap agreements for hedging purposes or speculative purposes. Swap agreements are","page_number":63,"box":{"x":101,"y":831,"width":782,"height":11}},{"id":"8b7a5846-bfa2-4f15-8bab-33437c586f92","block_type":"box","text":"OTC contracts entered into primarily by financial institutions and institutional investors which may or may not be","page_number":63,"box":{"x":69,"y":846,"width":796,"height":11}},{"id":"e5e7aec9-0b7f-4d55-9666-8736047cba51","block_type":"box","text":"cleared by a central clearinghouse. In a standard “swap” transaction, two par ties agree to exchange the returns","page_number":63,"box":{"x":69,"y":861,"width":799,"height":11}},{"id":"915aaa64-3eb5-4ba4-8057-9b291c2edfcc","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":63,"box":{"x":69,"y":876,"width":792,"height":11}},{"id":"879c38df-b57a-4aac-968b-bd53fca03378","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":63,"box":{"x":68,"y":891,"width":832,"height":12}},{"id":"0bdf537c-435f-44a1-bd0a-93e771194017","block_type":"box","text":"a “notional amount,”","page_number":63,"box":{"x":69,"y":907,"width":147,"height":10}},{"id":"0eaf9a55-2bfd-4576-b0e6-4a63062fa5fa","block_type":"box","text":"e.g.","page_number":63,"box":{"x":223,"y":908,"width":25,"height":10}},{"id":"73af02a2-e670-4956-9a79-f8d608fc464b","block_type":"box","text":", the return or increase in value of a par ticular dollar amount invested at a par ticular","page_number":63,"box":{"x":251,"y":906,"width":602,"height":11}},{"id":"b268750f-d28d-4385-9e43-b3d2131be423","block_type":"box","text":"II-17","page_number":63,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"5bb4718a-2f6c-4ce5-b076-ca1f4645ae7c","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":63,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"66658bb7-dc59-4f8e-b0af-5d2421431465","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":64,"box":{"x":70,"y":45,"width":787,"height":11}},{"id":"61c92d4e-2525-4221-b918-179d22e27ba7","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":64,"box":{"x":69,"y":60,"width":762,"height":11}},{"id":"acb82508-a5d8-4ce4-96b8-643b022a9f5b","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":64,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"906d9e3c-a07c-491e-9748-338ebcdb19bc","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":64,"box":{"x":69,"y":90,"width":832,"height":11}},{"id":"8632d1db-40c8-4424-a151-1156a0ba5ab3","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":64,"box":{"x":69,"y":105,"width":835,"height":11}},{"id":"cbf797c5-2909-4cb0-95ab-5c6120cd222c","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":64,"box":{"x":69,"y":120,"width":826,"height":12}},{"id":"ca443946-3346-4bce-82ee-ad2c6049396d","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":64,"box":{"x":69,"y":136,"width":827,"height":11}},{"id":"9954dec6-402c-44ef-b1a2-70a50ee944a2","block_type":"box","text":"to use swap agreements may be restricted by the tax rules applicable to registered investment companies.","page_number":64,"box":{"x":68,"y":151,"width":763,"height":11}},{"id":"496044ce-36ff-48ad-8199-d0e198a90afd","block_type":"box","text":"Credit Default Swaps and Similar Instruments.","page_number":64,"box":{"x":102,"y":173,"width":329,"height":11}},{"id":"4b4afff2-9108-4bbf-9ca3-bc4c01a96fd4","block_type":"box","text":"Cer tain Funds may enter into credit default swaps and similar","page_number":64,"box":{"x":438,"y":173,"width":439,"height":11}},{"id":"f1337744-f113-425d-a338-2f497d489c35","block_type":"box","text":"instruments. Credit default swaps are standardized agreements in which the protection “buyer” pays the protection","page_number":64,"box":{"x":70,"y":188,"width":821,"height":12}},{"id":"50ae193b-f27b-4320-ba3c-305a3d3b15a3","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":64,"box":{"x":70,"y":203,"width":831,"height":12}},{"id":"eabd62e8-e862-45f9-8458-d9c1f9f8c61d","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":64,"box":{"x":69,"y":218,"width":801,"height":12}},{"id":"02d6b419-50c9-418d-b6a4-3f7c4c0255a0","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":64,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"d847e3b2-f724-477a-aeb1-c4006f0d4fe7","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":64,"box":{"x":68,"y":249,"width":798,"height":11}},{"id":"ee4317be-7857-42eb-b19d-b5fe17c9c1d9","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":64,"box":{"x":69,"y":264,"width":827,"height":11}},{"id":"9e24226f-dd63-47c4-a7c4-10e594e22329","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":64,"box":{"x":69,"y":279,"width":836,"height":11}},{"id":"ca5d1a9a-00b9-42c9-a207-52861f748c3f","block_type":"box","text":"index CDS.","page_number":64,"box":{"x":70,"y":294,"width":75,"height":9}},{"id":"570fbea7-7c4a-4cf4-bd08-57e63e847258","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":64,"box":{"x":102,"y":317,"width":800,"height":11}},{"id":"ad10f721-16a2-4687-884b-aeb7bdaf4333","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":64,"box":{"x":69,"y":332,"width":806,"height":9}},{"id":"78bab08a-8025-4082-9113-160378059a02","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":64,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"1ad23a67-c41e-4fd0-b2d2-a5877c245564","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":64,"box":{"x":69,"y":362,"width":804,"height":11}},{"id":"bf722cea-c1f8-4417-8b34-a8a1bbe71b25","block_type":"box","text":"issuer defaults or restructurings, it has been unclear under the standard industry documentation for credit default","page_number":64,"box":{"x":70,"y":377,"width":812,"height":12}},{"id":"631372f2-8ae5-4754-8085-18f350f8ed5e","block_type":"box","text":"swaps whether or not a “credit event” triggering the seller’s payment obligation had occurred. Cer tain initiatives","page_number":64,"box":{"x":69,"y":392,"width":798,"height":12}},{"id":"6c7f31fd-a63b-4b3d-9c3d-5fafe2e62e90","block_type":"box","text":"adopted by derivatives market par ticipants, including the International Swaps and Derivatives Association (“ISDA”),","page_number":64,"box":{"x":69,"y":408,"width":819,"height":11}},{"id":"848fe72d-12e8-43b3-9e67-8b06d3cf96c8","block_type":"box","text":"are designed to implement uniform settlement terms into standard credit default swap documentation, as well as","page_number":64,"box":{"x":69,"y":423,"width":810,"height":11}},{"id":"37c0b41b-818b-4d8f-8859-0feb58f698ca","block_type":"box","text":"refine the practices for the transparent conduct of the credit default swap market generally. Among these initiatives","page_number":64,"box":{"x":69,"y":438,"width":821,"height":11}},{"id":"4fefc0df-649a-4c4b-9404-ce0e14a8c1ba","block_type":"box","text":"are the ISDA Credit Derivatives Determination Committee and the implementation of market-wide cash settlement","page_number":64,"box":{"x":69,"y":453,"width":811,"height":11}},{"id":"e009b89f-8045-464c-81b2-72135588253a","block_type":"box","text":"protocols applicable to all market-standard credit default swaps. These initiatives are intended to reduce both the","page_number":64,"box":{"x":70,"y":468,"width":809,"height":11}},{"id":"00575bbd-9f36-4afc-8a62-3eb275019893","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":64,"box":{"x":69,"y":483,"width":827,"height":11}},{"id":"c963aee3-1f99-4a8d-993e-a0ca81f61ab1","block_type":"box","text":"Derivatives Determinations Committee will make determinations as to whether a credit event has occurred, establish","page_number":64,"box":{"x":70,"y":498,"width":834,"height":11}},{"id":"d0a4255c-04c6-4ebd-aa08-dbd83de940aa","block_type":"box","text":"an auction to determine a settlement price and identify the deliverable securities for purposes of the auction,","page_number":64,"box":{"x":69,"y":513,"width":778,"height":11}},{"id":"6036590c-9064-4e14-aee0-4ddf6d25ccaf","block_type":"box","text":"although the ISDA Credit Derivatives Determinations Committee may in cer tain limited circumstances refrain from","page_number":64,"box":{"x":69,"y":528,"width":809,"height":12}},{"id":"f9a1d5c5-d4a8-4d95-9cc6-d636c3432530","block_type":"box","text":"doing so. In the event the ISDA Credit Derivatives Determinations Committee cannot reach a timely resolution with","page_number":64,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"23015ace-7a82-4625-81f2-5f1b37585c20","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":64,"box":{"x":69,"y":559,"width":807,"height":11}},{"id":"8465a6be-af25-47af-ba79-0d4144173729","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":64,"box":{"x":69,"y":574,"width":832,"height":11}},{"id":"9b1a7102-d14a-410f-85e7-3ee4516d599a","block_type":"box","text":"into cer tain credit default swaps or similar instruments that may not be covered by these initiatives.","page_number":64,"box":{"x":70,"y":589,"width":711,"height":11}},{"id":"c7506b8b-71ac-4127-8e39-d37556837cf9","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":64,"box":{"x":102,"y":612,"width":757,"height":11}},{"id":"469ae746-d606-4089-afd5-951c07b59ba6","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":64,"box":{"x":69,"y":627,"width":794,"height":11}},{"id":"d18193a6-a25d-40c8-bd4c-ce7c2a7959ba","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":64,"box":{"x":69,"y":642,"width":830,"height":11}},{"id":"9a7d0dd6-4d1b-4174-b474-b9d53033d11c","block_type":"box","text":"settlement auction, together with the up-front or periodic payments previously received, may be less than the amount","page_number":64,"box":{"x":69,"y":657,"width":835,"height":11}},{"id":"eafb92e2-4314-43a8-aee2-45d256890541","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":64,"box":{"x":70,"y":672,"width":817,"height":11}},{"id":"be398a9e-2748-4da6-a37d-d8c707d30c11","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":64,"box":{"x":69,"y":687,"width":820,"height":11}},{"id":"86d394e7-8211-4cda-ac58-d7bd0c024126","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":64,"box":{"x":68,"y":702,"width":833,"height":12}},{"id":"f042ec0c-6eb2-4ebd-82c8-271785e7344e","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":64,"box":{"x":69,"y":717,"width":837,"height":12}},{"id":"759ca689-5dc2-407a-a0b5-5153ef8debdd","block_type":"box","text":"the event the ISDA Credit Derivatives Determinations Committee does not establish a cash settlement auction and","page_number":64,"box":{"x":68,"y":733,"width":820,"height":9}},{"id":"46bba978-d6ae-4dd0-b595-469c2aba45e5","block_type":"box","text":"identify the relevant deliverable securities or loans, the credit default swap buyer will have broad discretion to select","page_number":64,"box":{"x":70,"y":748,"width":828,"height":11}},{"id":"c720962a-7f57-4ec8-85f0-e28a54c8a278","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":64,"box":{"x":68,"y":763,"width":815,"height":11}},{"id":"0364f234-6f6a-43e3-a942-2afb91cc11a3","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":64,"box":{"x":68,"y":778,"width":814,"height":11}},{"id":"4f6e93a0-ccb3-481a-b9d3-bef22df8f11c","block_type":"box","text":"credit default swaps generally trade on the basis of theoretical pricing and valuation models, which may not","page_number":64,"box":{"x":69,"y":793,"width":766,"height":11}},{"id":"e15081e9-f15c-449f-8fe0-68cd037897fd","block_type":"box","text":"accurately value such swap positions when established or when subsequently traded or unwound under actual market","page_number":64,"box":{"x":69,"y":808,"width":840,"height":11}},{"id":"f403fc38-aefd-4aa8-be22-c168730a04cc","block_type":"box","text":"conditions.","page_number":64,"box":{"x":69,"y":823,"width":76,"height":9}},{"id":"221c8e56-62af-41ca-92c2-f788d3fa4130","block_type":"box","text":"Dodd-Frank requires that cer tain index CDS be executed in regulated markets and submitted for clearing to","page_number":64,"box":{"x":102,"y":846,"width":762,"height":11}},{"id":"bc800b7e-1fc0-4794-9a35-0fd681f2e92b","block_type":"box","text":"regulated clearinghouses. See “—Derivatives — Regulation of Derivatives — Dodd-Frank Regulations” above. Other","page_number":64,"box":{"x":69,"y":861,"width":824,"height":11}},{"id":"6ccb6cba-94e8-491f-8f50-08f05a43748e","block_type":"box","text":"single-name CDS and index CDS are permitted, although not required, to be cleared through regulated","page_number":64,"box":{"x":69,"y":876,"width":727,"height":11}},{"id":"b7628de8-8185-4e7d-842d-c33297543829","block_type":"box","text":"clearinghouses. The Funds clear all credit default swaps that are subject to mandatory clearing and may voluntarily","page_number":64,"box":{"x":69,"y":891,"width":819,"height":12}},{"id":"34c3c5cd-de8d-435a-9c92-8590318233b5","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":64,"box":{"x":69,"y":906,"width":764,"height":12}},{"id":"894577f0-cbcb-4e54-ac71-7d6445428f31","block_type":"box","text":"II-18","page_number":64,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"dd9ef48b-3e31-41aa-8f36-61f1b11590b1","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":64,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7b083e13-b31a-466f-ba19-7d0e215e10e4","block_type":"box","text":"counterpar ty risk with respect to the clearinghouse when entering into cleared single-name CDS and cleared index","page_number":65,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"e157d403-dfd3-4c93-a6f9-4f133617bb3c","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":65,"box":{"x":69,"y":60,"width":813,"height":11}},{"id":"8c7b40c1-05b5-4d61-825d-fb67ba5e0308","block_type":"box","text":"swaps and similar instruments. A Fund typically will enter into non-cleared credit default swaps and similar","page_number":65,"box":{"x":69,"y":75,"width":759,"height":11}},{"id":"50170e2e-dd00-4e94-8518-4676b11f7cc7","block_type":"box","text":"instruments with swap dealers and creditwor thy entities that have substantial capital or that have provided the Fund","page_number":65,"box":{"x":70,"y":90,"width":828,"height":11}},{"id":"9f0f857f-eeed-4a9a-ba04-fa615df8556b","block_type":"box","text":"with a third-par ty guaranty or other credit suppor t.","page_number":65,"box":{"x":68,"y":105,"width":355,"height":11}},{"id":"af509459-e13d-4d58-b564-ee7b32fb4aa0","block_type":"box","text":"In cer tain instances, a Fund may enter into bespoke credit default swaps or similar instruments either as","page_number":65,"box":{"x":102,"y":128,"width":750,"height":11}},{"id":"3e707c39-61f8-4b88-b03a-d5ab88b296b8","block_type":"box","text":"protection buyer or protection seller. While these contracts are similar in their operation to the market-standard credit","page_number":65,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"c2fccd7a-a8a7-473e-bfe3-3f705d9b5dbc","block_type":"box","text":"default swaps described above, they are less standardized and instead have bespoke or tailored features. For","page_number":65,"box":{"x":69,"y":158,"width":785,"height":11}},{"id":"00400a4a-3a2d-42f1-99ed-331d64c2cba8","block_type":"box","text":"example, as compared to market-standard credit defaults, the range of “credit events” triggering settlement of such","page_number":65,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"2e2f594a-b985-4674-a512-5f95f33696aa","block_type":"box","text":"bespoke contracts may be narrower or broader, any such triggered contracts are settled by physical delivery of the","page_number":65,"box":{"x":69,"y":188,"width":814,"height":12}},{"id":"db0e4a19-fa97-46bf-8a15-6608d3139402","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":65,"box":{"x":69,"y":203,"width":839,"height":12}},{"id":"db3346aa-0f98-4251-bc38-cc0a8011e919","block_type":"box","text":"securities as the reference obligations and/or deliverable obligations.","page_number":65,"box":{"x":69,"y":218,"width":495,"height":12}},{"id":"5de10fee-539d-409c-92ef-467bc5001fb4","block_type":"box","text":"In addition, credit default swaps and similar instruments generally involve greater risks than if a Fund had","page_number":65,"box":{"x":102,"y":241,"width":752,"height":11}},{"id":"7f62aa8d-8e80-46bd-ad95-2cf12e6961e6","block_type":"box","text":"invested in the reference obligation directly and are subject to significant credit risk, correlation risk, leverage risk,","page_number":65,"box":{"x":70,"y":256,"width":814,"height":12}},{"id":"676c92a7-ebbc-4f12-9162-ee70b6a1bec7","block_type":"box","text":"illiquidity risk and market risk. See “—Risk Factors in Derivatives” above.","page_number":65,"box":{"x":70,"y":272,"width":520,"height":11}},{"id":"9f4da14d-d308-4475-8d80-1c71a0cb273c","block_type":"box","text":"Interest Rate Swaps, Floors and Caps.","page_number":65,"box":{"x":102,"y":294,"width":273,"height":11}},{"id":"d95804c4-26cb-4266-862d-7f231db82a49","block_type":"box","text":"Cer tain Funds may enter into OTC derivatives in the form of interest rate","page_number":65,"box":{"x":381,"y":294,"width":515,"height":11}},{"id":"d57a031e-a95a-4d8e-979f-91fb0cc7cc1f","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":65,"box":{"x":69,"y":309,"width":755,"height":11}},{"id":"9b361bfd-05c2-4b25-a607-040ddd18991c","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":65,"box":{"x":68,"y":324,"width":788,"height":12}},{"id":"384c1ddb-64f2-4726-9407-221255639a10","block_type":"box","text":"duration management technique, to protect against an increase in the price of securities a Fund anticipates","page_number":65,"box":{"x":69,"y":339,"width":768,"height":12}},{"id":"0ae48375-6e1b-4518-a3a8-e7f5ddb18022","block_type":"box","text":"purchasing at a later date, or for speculation to increase returns.","page_number":65,"box":{"x":70,"y":355,"width":461,"height":11}},{"id":"515fec43-62da-43f6-81b7-2be51e879ba2","block_type":"box","text":"Dodd-Frank requires that cer tain interest rate swaps be executed in regulated markets and submitted for","page_number":65,"box":{"x":102,"y":377,"width":748,"height":12}},{"id":"546fafa3-c052-4a73-96c1-8578f46ce62e","block_type":"box","text":"clearing to regulated clearinghouses. See “—Regulation of Derivatives — Dodd-Frank Regulations” above. Other","page_number":65,"box":{"x":69,"y":392,"width":799,"height":12}},{"id":"2bb0cc5b-60ec-40a4-8731-119162fb4b9d","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":65,"box":{"x":70,"y":407,"width":829,"height":12}},{"id":"0aa7b46a-1cb3-434f-be7a-302db4fe3922","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":65,"box":{"x":69,"y":423,"width":797,"height":11}},{"id":"80bc118d-2a87-406b-b338-c8950186bd38","block_type":"box","text":"cleared interest rate swaps.","page_number":65,"box":{"x":69,"y":438,"width":198,"height":11}},{"id":"20225710-74d1-441d-8779-4b1813c32171","block_type":"box","text":"The Funds face significant counterpar ty risk with respect to their counterpar ties to non-cleared interest rate","page_number":65,"box":{"x":101,"y":460,"width":766,"height":12}},{"id":"7a7a2bfa-7ae6-4e4b-a9d3-54008c02b3bf","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":65,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"f31871a3-84bc-41f2-9018-2c55d166a9cb","block_type":"box","text":"transactions are swap dealers and other creditwor thy entities that have substantial capital or that have provided the","page_number":65,"box":{"x":68,"y":491,"width":830,"height":11}},{"id":"95f1bc64-0dad-4854-bdb6-2f0ffcb0a23a","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":65,"box":{"x":70,"y":506,"width":822,"height":11}},{"id":"7c509d43-0db2-4273-a6af-366e1b453cd8","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":65,"box":{"x":70,"y":521,"width":824,"height":11}},{"id":"e9c29ba6-1b37-4588-8e5b-2a09c50b3a0b","block_type":"box","text":"be successful in enforcing such remedies. The market for interest rate swaps is relatively liquid in comparison with","page_number":65,"box":{"x":69,"y":536,"width":819,"height":11}},{"id":"09d4955b-7495-41e8-8c87-b157bc7ddb4a","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":65,"box":{"x":69,"y":551,"width":801,"height":11}},{"id":"4b502da7-1645-4d76-8ad7-f0dd683a2e95","block_type":"box","text":"interest rate derivatives due to applicable income tax requirements.","page_number":65,"box":{"x":70,"y":566,"width":480,"height":11}},{"id":"9c0fef5d-9c3e-4953-a3fc-eaa0830df2fa","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":65,"box":{"x":102,"y":589,"width":790,"height":11}},{"id":"6c9a853c-e3fd-49c6-a124-0858cb4d2da2","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":65,"box":{"x":68,"y":604,"width":825,"height":11}},{"id":"482e0ded-6360-4ada-a18e-2b06b2bc712e","block_type":"box","text":"or variable interest rate, index or asset.","page_number":65,"box":{"x":69,"y":619,"width":280,"height":11}},{"id":"66849491-e143-4f06-b2a1-ac203cc59053","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":65,"box":{"x":101,"y":642,"width":780,"height":11}},{"id":"6509e8bf-3002-4758-897c-6f8f67b633c4","block_type":"box","text":"predetermined interest rate, to receive payments of interest on a notional principal amount from the par ty selling","page_number":65,"box":{"x":70,"y":657,"width":805,"height":11}},{"id":"dc6551e5-9cb3-4ae5-8606-7d50edc795e4","block_type":"box","text":"such interest rate floor.","page_number":65,"box":{"x":69,"y":672,"width":165,"height":9}},{"id":"c646e9a3-e31e-429f-8b05-0d0f8cdd6307","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":65,"box":{"x":101,"y":695,"width":780,"height":11}},{"id":"6eea16a9-3063-465d-a8f7-993648204fcc","block_type":"box","text":"predetermined interest rate, to receive payments of interest on a notional principal amount from the par ty selling","page_number":65,"box":{"x":70,"y":710,"width":805,"height":11}},{"id":"49012d38-6f2c-4ff8-8912-9bbe9423dc13","block_type":"box","text":"such interest rate cap.","page_number":65,"box":{"x":69,"y":725,"width":159,"height":11}},{"id":"e3b6056e-81db-4f45-8186-728729a4b39c","block_type":"box","text":"A Fund may enter into an interest rate swap to effectively exchange with another par ty their respective","page_number":65,"box":{"x":101,"y":748,"width":729,"height":11}},{"id":"bb733d36-7988-4eb0-9c5a-848883e2d084","block_type":"box","text":"commitments to pay or receive interest,","page_number":65,"box":{"x":69,"y":763,"width":282,"height":11}},{"id":"3878f01e-afc4-4051-8c66-9fb999ade669","block_type":"box","text":"e.g.","page_number":65,"box":{"x":359,"y":764,"width":24,"height":10}},{"id":"b7262649-71b3-4b64-a6da-2247191ddfe7","block_type":"box","text":", an exchange of fixed rate payments for floating rate payments. For","page_number":65,"box":{"x":386,"y":763,"width":482,"height":11}},{"id":"ee92ed2e-819c-4fa9-8774-46be61e6f591","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":65,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"53b5f827-7456-4175-81b8-3312f5af22ef","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":65,"box":{"x":69,"y":793,"width":823,"height":11}},{"id":"92a42fb4-bc31-4953-a9c1-0b0f3280c28b","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":65,"box":{"x":68,"y":808,"width":832,"height":11}},{"id":"3e991410-2f88-47a7-a93e-9711f363956e","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":65,"box":{"x":69,"y":823,"width":807,"height":12}},{"id":"a12096bf-7a8e-457f-9427-e3d5d89b7bf1","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":65,"box":{"x":69,"y":839,"width":836,"height":11}},{"id":"ef38a929-d500-4282-a0ea-43e1eecfcde9","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":65,"box":{"x":69,"y":853,"width":826,"height":12}},{"id":"a41a46c5-d375-401c-87f4-e86a17409a50","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":65,"box":{"x":69,"y":869,"width":840,"height":11}},{"id":"2c688ff3-2b2d-4cf1-98d2-cd0c4a517b74","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":65,"box":{"x":69,"y":884,"width":810,"height":11}},{"id":"22b32752-7a8c-4119-aeb8-eb7f0181d99c","block_type":"box","text":"year interest rates, but would preclude it from taking full advantage of rising interest rates.","page_number":65,"box":{"x":68,"y":899,"width":646,"height":11}},{"id":"69c0cbac-4d89-4d95-82f4-5fdcd54edd81","block_type":"box","text":"II-19","page_number":65,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b75f54ef-7f2b-40ef-9edc-bf2391961f1e","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":65,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8a34581c-719c-4e84-b1be-1d6932072c22","block_type":"box","text":"Gains from transactions in interest rate swaps distributed to shareholders will be taxable as ordinary income or,","page_number":66,"box":{"x":102,"y":45,"width":798,"height":11}},{"id":"c0a3d6cc-50fa-4dea-9f97-92d7559a91c5","block_type":"box","text":"in cer tain circumstances, as long term capital gains to shareholders.","page_number":66,"box":{"x":70,"y":60,"width":490,"height":11}},{"id":"c656845f-bc8a-4e71-abe4-e0bb4d8b6bc8","block_type":"box","text":"Interest rate swaps and interest rate caps and floors may be subject to correlation risk, leverage risk, illiquidity","page_number":66,"box":{"x":102,"y":82,"width":791,"height":12}},{"id":"e3922922-ada6-43ca-9936-c43a9f4bcdde","block_type":"box","text":"risk and market risk. See “—Risk Factors in Derivatives” above.","page_number":66,"box":{"x":69,"y":98,"width":454,"height":9}},{"id":"2abf8ad3-36b6-45b9-9072-47e76cf831a9","block_type":"box","text":"Total Return Swaps.","page_number":66,"box":{"x":103,"y":120,"width":139,"height":11}},{"id":"c0933349-48b0-4818-9724-1628a1bf3af3","block_type":"box","text":"Total return swaps are contracts in which one par ty agrees to make periodic payments to","page_number":66,"box":{"x":249,"y":120,"width":634,"height":12}},{"id":"199daf5d-0975-4903-bd8e-54e777d8bed9","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":66,"box":{"x":68,"y":135,"width":838,"height":12}},{"id":"1127ae2e-c2d0-4de9-a99a-0ae4611cda72","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":66,"box":{"x":69,"y":150,"width":764,"height":12}},{"id":"4edf2a2c-08d2-4281-a28a-8e01e9d34439","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":66,"box":{"x":69,"y":166,"width":791,"height":11}},{"id":"5ceac54e-28ff-41ed-8391-4e2dc2624243","block_type":"box","text":"asset. The asset underlying the contract may include a specified security, basket of securities or securities indices.","page_number":66,"box":{"x":69,"y":181,"width":821,"height":11}},{"id":"f9b521f6-1ce8-4ef0-9df3-b3b5c5f482a9","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":66,"box":{"x":68,"y":196,"width":838,"height":11}},{"id":"8269d371-c31a-4048-8c00-c1eb6a44a43f","block_type":"box","text":"“contracts for difference.”","page_number":66,"box":{"x":70,"y":211,"width":184,"height":9}},{"id":"c5ce9195-da37-4c26-957a-bc5358a75512","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":66,"box":{"x":101,"y":234,"width":770,"height":11}},{"id":"361c8f58-1b69-4f11-a3c1-a00b75e30038","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":66,"box":{"x":69,"y":249,"width":780,"height":11}},{"id":"0da35b3a-3f36-403b-a38a-a2b9415fcf3f","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":66,"box":{"x":69,"y":264,"width":839,"height":11}},{"id":"522b705e-eadf-4654-b22e-71bd02b0943e","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":66,"box":{"x":69,"y":279,"width":816,"height":11}},{"id":"f5f9b79b-3dc2-43ff-b59b-2f9c4a5cd672","block_type":"box","text":"the notional amount of the swap.","page_number":66,"box":{"x":68,"y":294,"width":235,"height":11}},{"id":"1d06e1c8-33a7-4c7b-9101-f4ff29805fc1","block_type":"box","text":"Total return swaps are subject to significant correlation risk, leverage risk, illiquidity risk, market risk and","page_number":66,"box":{"x":101,"y":317,"width":746,"height":11}},{"id":"bb7c716f-cd63-4e9d-bddf-0e426d675552","block_type":"box","text":"counterpar ty risk. See “—Risk Factors in Derivatives” above.","page_number":66,"box":{"x":69,"y":332,"width":433,"height":11}},{"id":"c907a995-28a7-42ba-af7e-b13d6b4d6ac5","block_type":"box","text":"Options.","page_number":66,"box":{"x":102,"y":355,"width":57,"height":11}},{"id":"38eda110-1e02-4e86-b7a7-77179a5d5d0d","block_type":"box","text":"Options on Securities and Securities Indices.","page_number":66,"box":{"x":102,"y":377,"width":319,"height":11}},{"id":"d89020b6-a76a-4a45-a29a-db67c6c2021c","block_type":"box","text":"A Fund may engage in transactions in options on individual","page_number":66,"box":{"x":427,"y":377,"width":418,"height":12}},{"id":"7894ac71-5a39-4a64-86b5-d61428ca49cd","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":66,"box":{"x":69,"y":392,"width":838,"height":11}},{"id":"d0d7d426-6f19-41a8-adff-0f126be57ad5","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":66,"box":{"x":69,"y":407,"width":820,"height":12}},{"id":"f0b07e39-e474-4e56-90e1-e668131acc28","block_type":"box","text":"made on exchanges and in the OTC markets. In general, exchange-traded options have standardized exercise prices","page_number":66,"box":{"x":69,"y":423,"width":826,"height":11}},{"id":"d6e7c7e3-3eeb-4055-8f3e-e83aa5b10d62","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":66,"box":{"x":69,"y":438,"width":806,"height":11}},{"id":"e16b0375-a1a5-4ff9-88d9-fae2bc2cd11a","block_type":"box","text":"par ties’ obligations in connection with such options is guaranteed by the exchange or a related clearing corporation.","page_number":66,"box":{"x":70,"y":453,"width":825,"height":11}},{"id":"b77b1ec2-aee7-4d6a-90ff-370605f0f507","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":66,"box":{"x":69,"y":468,"width":822,"height":11}},{"id":"c4d9cb6c-ebfc-49ee-a0bb-69fbaa63b72e","block_type":"box","text":"risk. OTC options also involve greater illiquidity risk.","page_number":66,"box":{"x":69,"y":483,"width":366,"height":11}},{"id":"816e7a90-fa84-44d3-b7af-a0794682f3f3","block_type":"box","text":"A Fund may also engage in transactions in options which have additional features that result in different","page_number":66,"box":{"x":101,"y":506,"width":743,"height":11}},{"id":"5915e556-76e7-43f0-9f44-2332f2e04e75","block_type":"box","text":"payment structures and/or expirations (commonly referred to as exotic options). For example, barrier options are","page_number":66,"box":{"x":70,"y":521,"width":804,"height":11}},{"id":"cee9befb-1b1c-4898-a19b-e3bcbef2eb42","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":66,"box":{"x":69,"y":536,"width":827,"height":11}},{"id":"a57245a4-6389-403d-ba37-4da803be5384","block_type":"box","text":"more predetermined levels on or before expiration. Binary options are another example of exotic options which have","page_number":66,"box":{"x":69,"y":551,"width":827,"height":11}},{"id":"ad3037dd-f4f9-4ccf-8df4-3411cfc7c1c3","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":66,"box":{"x":69,"y":566,"width":812,"height":11}},{"id":"b19850ea-1cc7-49d4-be49-71f2448e8044","block_type":"box","text":"OTC markets.","page_number":66,"box":{"x":69,"y":581,"width":95,"height":9}},{"id":"2a865980-46b4-4d5c-996d-9b9c13f7fe9d","block_type":"box","text":"There are several risks associated with transactions in options on securities and indexes. For example, there are","page_number":66,"box":{"x":101,"y":604,"width":806,"height":11}},{"id":"a2f40399-2320-41b6-abc2-6ecf02217644","block_type":"box","text":"significant differences between the securities and options markets that could result in an imper fect correlation","page_number":66,"box":{"x":69,"y":619,"width":791,"height":11}},{"id":"ff1a7fdb-206d-40fb-8140-0cc23c0ccf55","block_type":"box","text":"between these markets, causing a given transaction not to achieve its objectives. In addition, a liquid market for","page_number":66,"box":{"x":69,"y":634,"width":801,"height":12}},{"id":"5411251f-f079-4f56-9066-a199348594be","block_type":"box","text":"par ticular options, whether traded OTC or on a national securities exchange (“Exchange”) may be absent for reasons","page_number":66,"box":{"x":70,"y":649,"width":831,"height":12}},{"id":"7bc31229-e835-4822-a645-c380f48a3dc8","block_type":"box","text":"which include the following: there may be insufficient trading interest in cer tain options; restrictions may be imposed","page_number":66,"box":{"x":68,"y":664,"width":833,"height":12}},{"id":"c1566bb9-65d7-484c-89ce-a1d502526846","block_type":"box","text":"by an Exchange on opening transactions or closing transactions or both; trading halts, suspensions or other","page_number":66,"box":{"x":69,"y":680,"width":769,"height":11}},{"id":"f2f601cd-7d62-4f82-872e-211633b9dcf4","block_type":"box","text":"restrictions may be imposed with respect to par ticular classes or series of options or underlying securities; unusual","page_number":66,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"c3909290-241c-4fd7-b56c-e99cc51184a7","block_type":"box","text":"or unforeseen circumstances may interrupt normal operations on an Exchange; the facilities of an Exchange or the","page_number":66,"box":{"x":69,"y":710,"width":816,"height":11}},{"id":"bb886076-8a8f-4c3f-924b-b5bf1344c4ed","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":66,"box":{"x":69,"y":725,"width":796,"height":11}},{"id":"ddcfbb52-d279-4916-9111-dc4c5b08f917","block_type":"box","text":"Exchanges could, for economic or other reasons, decide or be compelled at some future date to discontinue the","page_number":66,"box":{"x":70,"y":740,"width":798,"height":11}},{"id":"7c6f98f6-952b-4ad5-86d0-63b9cf93c07c","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":66,"box":{"x":68,"y":755,"width":822,"height":11}},{"id":"998e3a6c-5df3-406f-b126-3425a86e7c8a","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":66,"box":{"x":69,"y":770,"width":818,"height":12}},{"id":"2a889e3c-84f5-493f-8e89-855ebb0b090e","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":66,"box":{"x":69,"y":785,"width":836,"height":12}},{"id":"db130403-4a16-4406-ab43-a67ef9a598d5","block_type":"box","text":"terms.","page_number":66,"box":{"x":68,"y":801,"width":45,"height":9}},{"id":"1604d9f1-f39e-4231-8e71-4d3a6a9c2f31","block_type":"box","text":"Each of the options exchanges has established limitations governing the maximum number of call or put options","page_number":66,"box":{"x":102,"y":823,"width":801,"height":12}},{"id":"24e4f6de-2448-458f-9dff-df37e5062dab","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":66,"box":{"x":69,"y":839,"width":826,"height":11}},{"id":"1ab7c0cf-cd39-4072-bbb4-7c031e1bfdef","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":66,"box":{"x":69,"y":853,"width":823,"height":12}},{"id":"4ace4249-aedb-4c51-b99f-9318c6f3119c","block_type":"box","text":"more accounts or through one or more brokers). Under these limitations, option positions of all investment","page_number":66,"box":{"x":69,"y":869,"width":762,"height":11}},{"id":"896d5452-3cb7-4c04-aa93-35ae309423e3","block_type":"box","text":"companies advised by the Manager are combined for purposes of these limits. Pursuant to these limitations, an","page_number":66,"box":{"x":69,"y":884,"width":798,"height":11}},{"id":"7c315c12-6076-4f4e-8522-24aa2765df75","block_type":"box","text":"II-20","page_number":66,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"9a9e3bf0-3530-445e-aec4-eac2628e16d4","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":66,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8f981d1e-a23e-4edf-92dc-760d8fe29e32","block_type":"box","text":"exchange may order the liquidation of positions and may impose other sanctions or restrictions. These position limits","page_number":67,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"cb7497a9-46fb-47d5-8583-85dae70c3941","block_type":"box","text":"may restrict the number of listed options that a Fund may buy or sell.","page_number":67,"box":{"x":69,"y":60,"width":491,"height":11}},{"id":"7bc424af-2347-439f-9c84-24eabba332f9","block_type":"box","text":"Call Options.","page_number":67,"box":{"x":102,"y":83,"width":89,"height":10}},{"id":"bd1f671d-29b6-4d22-a357-72214edd0c5f","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":67,"box":{"x":197,"y":82,"width":694,"height":12}},{"id":"711d529c-3d41-42c9-992a-e74dd334436b","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":67,"box":{"x":70,"y":98,"width":838,"height":11}},{"id":"91a1289b-523a-43c3-99dc-d257bb16dacc","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":67,"box":{"x":68,"y":113,"width":813,"height":11}},{"id":"42ac1e15-c929-4b4e-acee-48c172a71b03","block_type":"box","text":"Index options are similar to options on securities except that, rather than taking or making delivery of securities","page_number":67,"box":{"x":70,"y":128,"width":795,"height":11}},{"id":"9cc90635-a331-49e3-b8ed-d4d6fb6f43f4","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":67,"box":{"x":69,"y":143,"width":807,"height":11}},{"id":"16d73de7-971c-4dd3-8233-7d48d65902b4","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":67,"box":{"x":69,"y":158,"width":830,"height":11}},{"id":"81bb163e-4c7f-4aa2-ac78-e22292d8e7be","block_type":"box","text":"of the option.","page_number":67,"box":{"x":69,"y":173,"width":93,"height":11}},{"id":"31b9a007-fd10-402c-8a27-b990860a4ec8","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":67,"box":{"x":101,"y":196,"width":794,"height":11}},{"id":"f8942cb5-650c-4fb2-8683-ba7d23fef346","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":67,"box":{"x":69,"y":211,"width":823,"height":11}},{"id":"5efc5055-48d8-43f4-ab41-33aefc0852b0","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":67,"box":{"x":69,"y":226,"width":839,"height":11}},{"id":"8c422eb0-0686-43df-be48-e8ab5b7addb0","block_type":"box","text":"illiquid investments under the Funds’ Liquidity Program (as defined below) (“liquid assets”) designated on the","page_number":67,"box":{"x":70,"y":241,"width":778,"height":11}},{"id":"9a03e57b-21aa-452e-a6bd-e39d59ddff96","block_type":"box","text":"Manager’s or the sub-adviser’s books and records to the extent required by Commission guidelines.","page_number":67,"box":{"x":70,"y":256,"width":711,"height":12}},{"id":"bf5e9dcf-2afd-4502-bc65-a27ccaa6c7e5","block_type":"box","text":"A Fund may write (","page_number":67,"box":{"x":101,"y":279,"width":130,"height":11}},{"id":"c5a5d191-8d80-4f76-bc80-c78c672351b9","block_type":"box","text":"i.e.","page_number":67,"box":{"x":233,"y":279,"width":20,"height":9}},{"id":"310f101f-cd5c-4e88-b156-324403cccf6c","block_type":"box","text":", sell) covered call options on the securities or instruments in which it may invest and to","page_number":67,"box":{"x":256,"y":279,"width":627,"height":11}},{"id":"fc160abc-5440-48a5-9b13-9e95b9624200","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":67,"box":{"x":69,"y":294,"width":831,"height":11}},{"id":"f68ba7bd-fdcb-44bf-8643-fb9ecfcf6951","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":67,"box":{"x":68,"y":309,"width":827,"height":11}},{"id":"faf195ca-0493-4033-a2ec-92a2efbfb139","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":67,"box":{"x":69,"y":324,"width":797,"height":12}},{"id":"4cda0f60-ca57-4e8b-a5a9-ac4ae27b9ff0","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":67,"box":{"x":69,"y":339,"width":823,"height":12}},{"id":"7b8c12e3-9961-4df4-8a21-dc4e052b01a1","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":67,"box":{"x":70,"y":355,"width":823,"height":11}},{"id":"6ddb3f7a-2a02-4bb4-9070-28257852528a","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":67,"box":{"x":70,"y":370,"width":825,"height":11}},{"id":"74da2c5b-722e-49fd-b480-a0309d01ff88","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":67,"box":{"x":69,"y":385,"width":800,"height":11}},{"id":"c25b2ae7-f7d8-4786-a68b-bfc9dee69db0","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":67,"box":{"x":69,"y":400,"width":792,"height":11}},{"id":"a893e4db-0bdc-42c4-85ce-c49b871e6c42","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":67,"box":{"x":70,"y":415,"width":826,"height":11}},{"id":"cea52fe3-733e-49e7-b4da-29deae1a0cea","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":67,"box":{"x":69,"y":430,"width":760,"height":11}},{"id":"b76fd9f3-225d-40b2-b80a-a85f4900a05f","block_type":"box","text":"A Fund may write","page_number":67,"box":{"x":101,"y":453,"width":120,"height":11}},{"id":"9312fee4-ad34-4292-a739-abea730f6a3b","block_type":"box","text":"(i.e.","page_number":67,"box":{"x":228,"y":453,"width":25,"height":11}},{"id":"107a8e0f-021a-41e5-a856-40200e82e0bb","block_type":"box","text":", sell) uncovered call options on securities or instruments in which it may invest but that","page_number":67,"box":{"x":256,"y":453,"width":628,"height":11}},{"id":"8d188ac9-3ef5-439c-baff-6f10a9aac958","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":67,"box":{"x":69,"y":468,"width":834,"height":11}},{"id":"08e77328-773d-4a2d-ae42-800099ce3d12","block_type":"box","text":"committing capital to the ownership of the underlying securities or instruments. When writing uncovered call options,","page_number":67,"box":{"x":69,"y":483,"width":830,"height":11}},{"id":"a827023c-1e81-4489-a6f6-d95ec1417734","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":67,"box":{"x":69,"y":498,"width":825,"height":11}},{"id":"7134a2ed-2561-4246-8d32-42e340c93b00","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":67,"box":{"x":69,"y":513,"width":818,"height":11}},{"id":"8c41070c-8fd9-42bd-b1d9-ea2e533aec86","block_type":"box","text":"During periods of declining securities prices or when prices are stable, writing uncovered calls can be a profitable","page_number":67,"box":{"x":70,"y":528,"width":806,"height":12}},{"id":"99aee3f9-1d83-4e0d-83b3-b4433f09a296","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":67,"box":{"x":69,"y":544,"width":839,"height":11}},{"id":"9571d29d-34c8-4069-9a51-b3e8b65dc743","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":67,"box":{"x":68,"y":559,"width":793,"height":11}},{"id":"73c0bfbc-3010-4433-9698-024111e54a07","block_type":"box","text":"characteristics and the potential for loss is unlimited. When an uncovered call is exercised, a Fund must purchase","page_number":67,"box":{"x":69,"y":574,"width":814,"height":11}},{"id":"ba8b2d50-8287-4f19-a3dd-2e48fd176604","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":67,"box":{"x":68,"y":589,"width":818,"height":11}},{"id":"eca2d84b-e3ce-4c74-8219-c2b64c621677","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":67,"box":{"x":68,"y":604,"width":825,"height":11}},{"id":"e81b16fc-7a14-40bf-be88-33d6142f71f1","block_type":"box","text":"exercise price, a Fund will lose the difference.","page_number":67,"box":{"x":69,"y":619,"width":326,"height":11}},{"id":"e00d75be-2712-4805-b55c-d885953e1c6b","block_type":"box","text":"Put Options.","page_number":67,"box":{"x":102,"y":642,"width":85,"height":11}},{"id":"15b6c831-efcc-449f-8ee2-44354815551b","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":67,"box":{"x":194,"y":642,"width":712,"height":11}},{"id":"b96c5fd7-48e4-4b3e-9c67-6e17e9f90cd9","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":67,"box":{"x":68,"y":657,"width":828,"height":11}},{"id":"6320ed0d-08a6-4adc-b8bc-7053655f1d26","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":67,"box":{"x":69,"y":672,"width":816,"height":11}},{"id":"e9129061-b43a-475a-97a2-1db1907e9967","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":67,"box":{"x":70,"y":687,"width":820,"height":11}},{"id":"f490ff4c-ffea-4c98-92e5-7a0f66e7648f","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":67,"box":{"x":70,"y":702,"width":826,"height":11}},{"id":"9b3a11ef-93a1-43af-b212-6ece77e5eb43","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":67,"box":{"x":69,"y":717,"width":815,"height":12}},{"id":"e56b38a3-b4d1-4b3b-92c5-c27af1d94a61","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":67,"box":{"x":68,"y":732,"width":839,"height":11}},{"id":"28540f4b-d474-487b-858c-74a920245985","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":67,"box":{"x":68,"y":748,"width":841,"height":11}},{"id":"e1f0c8f8-23a5-4dbc-8a2d-6abf60c93a95","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":67,"box":{"x":69,"y":763,"width":785,"height":11}},{"id":"410562ea-defd-4b41-adc0-e6f9ca77c61e","block_type":"box","text":"purchase uncovered put options.","page_number":67,"box":{"x":70,"y":778,"width":231,"height":11}},{"id":"408d9c46-162e-4786-a2dc-f923176cab6e","block_type":"box","text":"A Fund also may write (","page_number":67,"box":{"x":101,"y":801,"width":165,"height":11}},{"id":"a3929077-d1e9-4770-8211-51108cac0e2d","block_type":"box","text":"i.e.","page_number":67,"box":{"x":268,"y":801,"width":20,"height":9}},{"id":"a1b5e16e-d5be-4aa3-bdd3-81803b056d04","block_type":"box","text":", sell) put options on the types of securities or instruments that may be held by the","page_number":67,"box":{"x":291,"y":801,"width":591,"height":11}},{"id":"51cba926-4d51-45df-a915-35c6518763c9","block_type":"box","text":"Fund. A Fund will receive a premium for writing a put option, which increases the Fund’s return.","page_number":67,"box":{"x":70,"y":816,"width":675,"height":11}},{"id":"3ba602bd-2044-49c6-9b76-51e7ef7aea02","block_type":"box","text":"A Fund also may write (","page_number":67,"box":{"x":101,"y":839,"width":165,"height":10}},{"id":"0d05f1fa-c268-4333-aa13-1c38e2438398","block_type":"box","text":"i.e.","page_number":67,"box":{"x":268,"y":839,"width":20,"height":8}},{"id":"fb029264-55d8-4981-a0bd-b2ebaeda9b69","block_type":"box","text":", sell) uncovered put options on securities or instruments in which it may invest but","page_number":67,"box":{"x":291,"y":839,"width":593,"height":10}},{"id":"bd2eca30-9a84-4aad-b210-80a537ea8924","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":67,"box":{"x":68,"y":854,"width":789,"height":11}},{"id":"3d280847-20a9-4a4f-ace0-5905ea7ce3dd","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":67,"box":{"x":69,"y":869,"width":773,"height":11}},{"id":"3dd725c0-9a33-4e4f-a653-a097a439370b","block_type":"box","text":"uncovered put option. The principal reason for writing uncovered put options is to receive premium income and to","page_number":67,"box":{"x":69,"y":884,"width":807,"height":11}},{"id":"7923adb1-d4d6-4d75-bd42-23b0b1f1f6a2","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":67,"box":{"x":69,"y":899,"width":835,"height":11}},{"id":"dcee5486-2816-4459-809e-dac7ff9256cc","block_type":"box","text":"II-21","page_number":67,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"0238d739-d3fa-4a19-915e-5010c5f1abcd","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":67,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3ba3d719-258d-46f2-88c3-61338b709a10","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":68,"box":{"x":68,"y":45,"width":818,"height":11}},{"id":"70cb379c-8b50-41e9-b658-68a1e4e3b4d6","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":68,"box":{"x":68,"y":60,"width":800,"height":11}},{"id":"7998d072-c44b-438c-a6cd-b00d3333b577","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":68,"box":{"x":69,"y":75,"width":814,"height":11}},{"id":"be56103f-ec7c-4adb-b21b-fe2b2185db97","block_type":"box","text":"the exercise price.","page_number":68,"box":{"x":68,"y":90,"width":130,"height":11}},{"id":"f493e9de-628a-49e6-97a0-7a375bc50937","block_type":"box","text":"Options on Government National Mor tgage Association (“GNMA”) Cer tificates.","page_number":68,"box":{"x":102,"y":113,"width":556,"height":11}},{"id":"e7d9b6f3-4d55-4e9f-a44b-7cf4f4613c0c","block_type":"box","text":"The following information relates","page_number":68,"box":{"x":664,"y":113,"width":232,"height":11}},{"id":"9e0cd9c3-1f1c-4d34-8a53-ddd10e657acb","block_type":"box","text":"to the unique characteristics of options on GNMA Cer tificates. Since the remaining principal balance of GNMA","page_number":68,"box":{"x":68,"y":128,"width":784,"height":11}},{"id":"e03cf7b2-a2cf-4094-b0e8-19df7031fcf4","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":68,"box":{"x":69,"y":143,"width":840,"height":11}},{"id":"60b03a59-e3e5-4427-b720-ca644f792dcd","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":68,"box":{"x":69,"y":158,"width":827,"height":11}},{"id":"84ed4772-2b7a-47ae-8256-58894333920f","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":68,"box":{"x":70,"y":173,"width":781,"height":11}},{"id":"85555d3c-b602-47d3-b06d-ccb713875d85","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":68,"box":{"x":70,"y":188,"width":803,"height":11}},{"id":"e19e6b71-9d39-43fb-81f5-5817c8f111ec","block_type":"box","text":"market in order to maintain its “cover.”","page_number":68,"box":{"x":69,"y":204,"width":277,"height":8}},{"id":"1bd55589-1971-4978-8794-e3f9e9cbbafb","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":68,"box":{"x":101,"y":226,"width":807,"height":11}},{"id":"f7b5665e-27dc-4485-a4f8-e68e249ce58d","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":68,"box":{"x":68,"y":241,"width":835,"height":11}},{"id":"105a77e5-6715-4561-8e74-4ebc8e3a529a","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":68,"box":{"x":69,"y":256,"width":821,"height":12}},{"id":"97fffdab-6806-4325-b222-6d712c4dc952","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":68,"box":{"x":68,"y":271,"width":784,"height":12}},{"id":"6904bdab-d7b5-4c58-840d-26a113141c13","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":68,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"8f6d75b3-1a93-46dc-b1be-043570035280","block_type":"box","text":"and incur transaction costs.","page_number":68,"box":{"x":69,"y":302,"width":197,"height":9}},{"id":"c13907b1-6be6-4c78-a1bd-8e76bbbb4ff4","block_type":"box","text":"Options on Swaps (“Swaptions”).","page_number":68,"box":{"x":102,"y":324,"width":235,"height":11}},{"id":"64d1d253-35c8-4a38-937f-fe21ee43e657","block_type":"box","text":"A swaption gives a counterpar ty the option (but not the obligation) to enter into","page_number":68,"box":{"x":343,"y":325,"width":563,"height":11}},{"id":"5118db04-d877-4997-be4e-6a8a154ef228","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":68,"box":{"x":69,"y":339,"width":763,"height":12}},{"id":"a62147dc-a4fc-42e5-b630-8195601aa2bf","block_type":"box","text":"designated future time on specified terms. A Fund may write (","page_number":68,"box":{"x":69,"y":355,"width":439,"height":11}},{"id":"7775559e-c9ac-425c-a7ca-2189bba035bd","block_type":"box","text":"i.e.","page_number":68,"box":{"x":510,"y":355,"width":20,"height":9}},{"id":"a2b93534-12f2-4272-953b-12441803b2e2","block_type":"box","text":", sell) and purchase put and call swaptions.","page_number":68,"box":{"x":533,"y":355,"width":309,"height":11}},{"id":"567fe851-e5e2-42f6-baaf-bc934f6b880c","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":68,"box":{"x":70,"y":370,"width":826,"height":11}},{"id":"b7a54825-e933-4e28-b3cb-25fc466767c8","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":68,"box":{"x":70,"y":385,"width":793,"height":11}},{"id":"875693b0-1d6c-4596-87cf-d6d6dd811d51","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":68,"box":{"x":70,"y":400,"width":802,"height":11}},{"id":"dcdec811-14ad-4f04-9014-3f20874448a6","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":68,"box":{"x":68,"y":415,"width":836,"height":11}},{"id":"4e917c5d-7c5f-4f6f-b745-770495150b53","block_type":"box","text":"the underlying agreement and the potential for loss may be unlimited. Cer tain swaptions are permitted, although not","page_number":68,"box":{"x":68,"y":430,"width":832,"height":11}},{"id":"30598cf3-a8f8-4952-89bc-3a1d03bbf3c1","block_type":"box","text":"required, to be cleared.","page_number":68,"box":{"x":69,"y":446,"width":165,"height":10}},{"id":"017c3ceb-a309-4f42-afb2-d0fdd05ad6df","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":68,"box":{"x":101,"y":468,"width":760,"height":11}},{"id":"c35883cd-ec3a-45f7-882e-940f7b0afd7e","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":68,"box":{"x":70,"y":483,"width":830,"height":11}},{"id":"138106f0-0f24-4a53-aa08-0ec281988c3f","block_type":"box","text":"a later date. A Fund generally will use these transactions for hedging purposes, not for speculation.","page_number":68,"box":{"x":69,"y":498,"width":706,"height":11}},{"id":"defd639f-6ba9-4bdd-af61-ab747036a2e5","block_type":"box","text":"Swaptions may be subject to correlation risk, leverage risk, illiquidity risk and market risk. See “—Risk Factors in","page_number":68,"box":{"x":102,"y":521,"width":805,"height":11}},{"id":"1e5b440c-1538-44c9-9846-ec3552dfcf0e","block_type":"box","text":"Derivatives” above.","page_number":68,"box":{"x":70,"y":536,"width":135,"height":9}},{"id":"0871ea3e-6a77-40e6-98a7-da79f341920c","block_type":"box","text":"FLEX Options.","page_number":68,"box":{"x":102,"y":559,"width":96,"height":11}},{"id":"fb0cba68-93ba-4681-87c1-38ee83fab7f3","block_type":"box","text":"FLEX Options are customized option contracts available through national securities exchanges that","page_number":68,"box":{"x":206,"y":559,"width":702,"height":11}},{"id":"0088c659-0f9a-4a0b-a1ed-cb2b6dd472ed","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":68,"box":{"x":69,"y":574,"width":839,"height":11}},{"id":"829ab251-3546-4957-a9f9-6c63916e4b8d","block_type":"box","text":"securities exchange. FLEX Options provide investors with the ability to customize assets referenced by the options,","page_number":68,"box":{"x":69,"y":589,"width":818,"height":11}},{"id":"4fc2e48e-5bfb-41fd-b668-065958962ae2","block_type":"box","text":"exercise prices, exercise styles (","page_number":68,"box":{"x":69,"y":604,"width":231,"height":11}},{"id":"6503672b-f1ff-459b-a510-beda99d8d694","block_type":"box","text":"i.e.","page_number":68,"box":{"x":302,"y":604,"width":20,"height":9}},{"id":"edaccf79-7d7b-492d-8b64-e9af44fbba48","block_type":"box","text":", American-style, exercisable any time prior to the expiration date, or European","page_number":68,"box":{"x":325,"y":604,"width":561,"height":11}},{"id":"02c79fae-fcd4-4a57-a442-712e4f0aa405","block_type":"box","text":"style, exercisable only on the option expiration date) and expiration dates, while achieving price discovery in","page_number":68,"box":{"x":69,"y":619,"width":768,"height":11}},{"id":"ff8e0536-e5ec-4e17-9b60-74159a743259","block_type":"box","text":"competitive, transparent auctions markets and avoiding the counterpar ty exposure of OTC options positions. Each","page_number":68,"box":{"x":69,"y":634,"width":812,"height":12}},{"id":"35d29669-5d7b-4513-82ce-db122a358eb3","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":68,"box":{"x":69,"y":649,"width":830,"height":11}},{"id":"8ddf4a7e-013f-4a36-a324-abd54026c9c2","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":68,"box":{"x":69,"y":664,"width":792,"height":12}},{"id":"d891c9f4-66e5-4869-bc8b-28a75e4c076b","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":68,"box":{"x":70,"y":680,"width":802,"height":11}},{"id":"5b9e27ef-7dc8-41e7-9b6e-e6e25700dc04","block_type":"box","text":"options, which means that they are exercisable at a predetermined specified price (the “strike price”) only on the","page_number":68,"box":{"x":69,"y":695,"width":806,"height":11}},{"id":"76e4320c-d6b5-461a-a4fb-66929b95d019","block_type":"box","text":"FLEX Option’s expiration date.","page_number":68,"box":{"x":70,"y":710,"width":211,"height":11}},{"id":"1651eb9c-ab1e-466e-9f78-7c17311738ab","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":68,"box":{"x":101,"y":732,"width":783,"height":12}},{"id":"50a00e78-ea5c-45d9-a28d-82f696b327a7","block_type":"box","text":"every seller and the seller for every buyer”, reducing counterpar ty risk for clearing members and options traders.","page_number":68,"box":{"x":69,"y":748,"width":802,"height":11}},{"id":"409fa296-f153-428a-9d11-d5e3efe363cd","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":68,"box":{"x":68,"y":763,"width":826,"height":11}},{"id":"b65418ae-9d1e-4cb8-af87-cfb945139c43","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":68,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"c590555e-09a9-4394-902e-46e0f29fd94c","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":68,"box":{"x":69,"y":793,"width":822,"height":11}},{"id":"eb4ea58c-8f80-4f6f-877c-128afd041499","block_type":"box","text":"FLEX Options contracts.","page_number":68,"box":{"x":70,"y":808,"width":166,"height":11}},{"id":"e0273e9e-b641-4983-83c3-190e68b33f04","block_type":"box","text":"Subject to determination by the Securities Committee of the OCC, adjustments may be made to the FLEX","page_number":68,"box":{"x":102,"y":831,"width":748,"height":11}},{"id":"66871a74-cb5e-45bd-81e5-3ca4e1cc9293","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":68,"box":{"x":69,"y":846,"width":822,"height":11}},{"id":"00a76e74-d184-43dd-963b-738025e6f7c9","block_type":"box","text":"dividends or distributions, stock splits, reverse stock splits, rights offerings, distributions, reorganizations,","page_number":68,"box":{"x":69,"y":861,"width":759,"height":11}},{"id":"6f739660-a6bc-4cb2-bea6-79cc38ce2abd","block_type":"box","text":"recapitalizations, or reclassifications with respect to an underlying security, or a merger, consolidation, dissolution or","page_number":68,"box":{"x":69,"y":876,"width":833,"height":11}},{"id":"7350d63f-c678-49fd-a2b7-b75bfd14bc9f","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":68,"box":{"x":70,"y":891,"width":829,"height":12}},{"id":"d3d11d83-bbaf-4d04-8d1e-3f76162301d5","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":68,"box":{"x":69,"y":906,"width":821,"height":12}},{"id":"65a368d6-cd79-4b64-a70d-cfef0a9417b6","block_type":"box","text":"II-22","page_number":68,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"550138f4-8ecc-476b-b0fb-03a9d302c053","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":68,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9313ef90-94eb-47cc-9cda-05586dab7062","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":69,"box":{"x":68,"y":45,"width":835,"height":11}},{"id":"4f54f63a-b2e1-439a-bf2f-f1a6f77ed5f9","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":69,"box":{"x":68,"y":60,"width":829,"height":11}},{"id":"3b1c6da5-4701-422d-81cb-2ab2b0047aff","block_type":"box","text":"the affected options, the maintenance of a fair and orderly market in the affected options, consistency of","page_number":69,"box":{"x":68,"y":75,"width":753,"height":11}},{"id":"9e276312-9afd-4a6c-a9f4-e84791e14d14","block_type":"box","text":"interpretation and practice, efficiency of exercise settlement procedures, and the coordination with other clearing","page_number":69,"box":{"x":70,"y":90,"width":806,"height":11}},{"id":"26b55933-2b69-4b4c-b4af-71544ede8a0b","block_type":"box","text":"agencies of the clearance and settlement of transactions in the underlying interest.","page_number":69,"box":{"x":69,"y":105,"width":593,"height":11}},{"id":"32dde495-eaf0-4b5d-aabb-b096b7392db4","block_type":"box","text":"Cer tain Considerations Regarding Options","page_number":69,"box":{"x":135,"y":128,"width":298,"height":11}},{"id":"6062a9ef-9e69-43ad-a421-5c51bf996083","block_type":"box","text":". The FLEX Options in which each Fund may invest will be options","page_number":69,"box":{"x":435,"y":128,"width":461,"height":11}},{"id":"bd91fb63-83d2-4634-81d8-d15f35f380e9","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":69,"box":{"x":102,"y":143,"width":768,"height":11}},{"id":"a2fc369f-a78b-4695-8e5f-4dab6f8cc5d8","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":69,"box":{"x":102,"y":158,"width":775,"height":11}},{"id":"2897b594-3668-4367-8d0d-6a6583f3f4c5","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":69,"box":{"x":102,"y":173,"width":777,"height":11}},{"id":"cb52621d-d68b-4bcd-b7e6-81a2c40388ab","block_type":"box","text":"reflect, among other things, the time remaining until expiration (the end of the Outcome Period), the relationship","page_number":69,"box":{"x":102,"y":188,"width":799,"height":12}},{"id":"da94ca88-bfdb-493d-b004-5a015dc7dc0d","block_type":"box","text":"of the exercise price to the market price of the Reference Asset, and general market conditions. Options that","page_number":69,"box":{"x":102,"y":203,"width":777,"height":12}},{"id":"5b8ca96c-42f7-4cca-9c62-57aab180c38c","block_type":"box","text":"expire unexercised have no value.","page_number":69,"box":{"x":101,"y":219,"width":240,"height":10}},{"id":"79c1753a-2edb-4b7d-a216-10f686137024","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":69,"box":{"x":134,"y":241,"width":747,"height":11}},{"id":"6a479b2f-7f0e-4d7a-b076-a2cbf8fe0225","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":69,"box":{"x":101,"y":256,"width":792,"height":11}},{"id":"eb311544-e38b-4868-addb-4f2f44cd0bf0","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":69,"box":{"x":101,"y":271,"width":786,"height":12}},{"id":"3e7c55cb-7def-45a2-a94c-ca46348098fc","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":69,"box":{"x":101,"y":286,"width":798,"height":12}},{"id":"854a53f8-3e06-46ac-855b-abf2116ea895","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":69,"box":{"x":102,"y":302,"width":802,"height":11}},{"id":"64c79c2e-6946-46e2-b115-763f0cab788b","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":69,"box":{"x":102,"y":317,"width":800,"height":11}},{"id":"99115d0a-de3b-47c3-b4ee-e17539f27d8c","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":69,"box":{"x":102,"y":332,"width":774,"height":11}},{"id":"1949efcc-0d55-413e-898e-63a40004e6cf","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":69,"box":{"x":102,"y":347,"width":793,"height":11}},{"id":"4e6cfae9-80e7-4b54-b89d-50956278d581","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":69,"box":{"x":102,"y":362,"width":764,"height":11}},{"id":"881fe491-6113-4116-9959-4563e00470a7","block_type":"box","text":"number of shares of the ETF in exchange for the strike price.","page_number":69,"box":{"x":102,"y":377,"width":430,"height":12}},{"id":"25986ef0-2964-4580-bd6e-44b552c1a320","block_type":"box","text":"Although each Fund will generally utilize FLEX Options that are physically settled, a Fund may also utilize","page_number":69,"box":{"x":134,"y":400,"width":740,"height":11}},{"id":"e16ce5b2-328e-403e-abdb-f458b62d363d","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":69,"box":{"x":102,"y":415,"width":787,"height":11}},{"id":"297c3b09-e77a-44a5-b842-de78b26c4774","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":69,"box":{"x":102,"y":430,"width":790,"height":11}},{"id":"6bb91eea-defa-4170-97e8-36e0ca0dfbd1","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":69,"box":{"x":102,"y":445,"width":793,"height":12}},{"id":"f7244d48-eb70-4322-a14f-2c188a73be10","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":69,"box":{"x":102,"y":460,"width":802,"height":12}},{"id":"ca372a1b-77ad-4521-a21b-d479704059c8","block_type":"box","text":"multiple (“multiplier”), which determines the total value for each point of such difference.","page_number":69,"box":{"x":102,"y":475,"width":635,"height":12}},{"id":"e567a5cd-ecc8-4806-9ac7-c789c214e187","block_type":"box","text":"Risks of Options on the Reference Assets","page_number":69,"box":{"x":135,"y":498,"width":297,"height":11}},{"id":"d382f43b-ce44-4d78-b702-99575c878834","block_type":"box","text":". If a Fund has purchased an option and exercises it before the","page_number":69,"box":{"x":433,"y":498,"width":448,"height":11}},{"id":"51f8398c-c84a-4638-8521-45f2ac6e0f49","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":69,"box":{"x":101,"y":513,"width":777,"height":12}},{"id":"5604d3ab-c781-479a-94fe-17bebd7672e0","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":69,"box":{"x":101,"y":528,"width":753,"height":12}},{"id":"3938bec1-268a-4743-9b45-566784b79310","block_type":"box","text":"required to pay the difference between the closing Reference Asset value and the exercise price of the option","page_number":69,"box":{"x":102,"y":543,"width":780,"height":12}},{"id":"e840c595-54b7-4c13-89a1-a098adcf3bcf","block_type":"box","text":"(times the applicable multiplier) to the assigned writer.","page_number":69,"box":{"x":102,"y":559,"width":387,"height":11}},{"id":"aa0cda0c-fb84-4f3c-b50e-f2579ee947f9","block_type":"box","text":"Foreign Exchange Transactions.","page_number":69,"box":{"x":102,"y":582,"width":222,"height":11}},{"id":"9af8b54c-a6bb-448c-8060-479c5b6e4379","block_type":"box","text":"A Fund may enter into spot foreign exchange transactions, forward foreign exchange transactions (“FX forwards”)","page_number":69,"box":{"x":101,"y":604,"width":807,"height":11}},{"id":"5210a041-fd08-44bb-ba1f-e0d067c3581c","block_type":"box","text":"and currency swaps, purchase and sell currency options, currency futures and related options thereon (collectively,","page_number":69,"box":{"x":69,"y":619,"width":818,"height":11}},{"id":"2a4ed0ba-96c6-476a-a89b-f20c73bcf688","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":69,"box":{"x":70,"y":634,"width":821,"height":12}},{"id":"ff995146-9bcf-404e-b025-4408ba4f4656","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":69,"box":{"x":69,"y":649,"width":792,"height":12}},{"id":"63fe65d6-259a-4b78-9909-8babf0af7baf","block_type":"box","text":"Such transactions could be effected to hedge with respect to foreign dollar denominated securities owned by a","page_number":69,"box":{"x":102,"y":672,"width":790,"height":11}},{"id":"af511e06-b2a3-4885-9cd7-0e7001c64fe1","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":69,"box":{"x":70,"y":687,"width":830,"height":11}},{"id":"e1311b07-c711-4194-bbc3-105653f7350f","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":69,"box":{"x":69,"y":702,"width":808,"height":12}},{"id":"b02632d7-bff2-42b8-bb7e-7596c45141fa","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":69,"box":{"x":69,"y":717,"width":824,"height":12}},{"id":"61afe037-727a-44ed-8c08-63e74871aa2f","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":69,"box":{"x":68,"y":732,"width":823,"height":12}},{"id":"7186e180-519d-4d05-942d-9d36396f1a7a","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":69,"box":{"x":68,"y":748,"width":821,"height":11}},{"id":"796bb766-dddb-4acc-b7ff-b0b249b690f2","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":69,"box":{"x":70,"y":763,"width":813,"height":11}},{"id":"fddb3452-2508-43a2-b375-c2ed0ab8fcee","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":69,"box":{"x":69,"y":778,"width":813,"height":11}},{"id":"d8cdbe77-539d-4c58-8caf-bb4c4ae48b37","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":69,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"7eb160cd-d169-4004-834b-3347fa37bdf6","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":69,"box":{"x":68,"y":808,"width":836,"height":11}},{"id":"cf438a6e-ee91-484c-8629-e3c898a59e82","block_type":"box","text":"transactions. Cer tain Funds have a fundamental investment restriction that restricts currency option strategies.","page_number":69,"box":{"x":68,"y":823,"width":794,"height":12}},{"id":"149e7a2c-6053-4d83-bec7-1e31347169b6","block_type":"box","text":"Hedging transactions involving Currency Instruments involve substantial risks, including correlation risk. A Fund’s","page_number":69,"box":{"x":102,"y":846,"width":805,"height":11}},{"id":"959d3b22-b587-40cf-804d-d66b0936b140","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":69,"box":{"x":69,"y":861,"width":828,"height":11}},{"id":"02a11132-2e04-4735-abb5-709d325c309b","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":69,"box":{"x":69,"y":876,"width":819,"height":11}},{"id":"4e5260ac-6989-4c34-ac44-a26f5108dc13","block_type":"box","text":"Moreover, although Currency Instruments will be used with the intention of hedging against adverse currency","page_number":69,"box":{"x":70,"y":891,"width":773,"height":12}},{"id":"ef5e3cd1-d11a-48fa-9480-1ed700231077","block_type":"box","text":"movements, transactions in Currency Instruments involve the risk that anticipated currency movements will not be","page_number":69,"box":{"x":69,"y":906,"width":814,"height":12}},{"id":"a2fecb19-b740-40b1-92c7-29e0fb392c07","block_type":"box","text":"II-23","page_number":69,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"eac26bf8-8d43-45b7-aaca-9cc543883d12","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":69,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"333e8158-62b5-4d83-b700-b2e074864a43","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":70,"box":{"x":69,"y":45,"width":796,"height":11}},{"id":"9db18683-5e7c-41f0-aa99-05069d9070ac","block_type":"box","text":"against anticipated currency movements that do not occur, the Fund may realize losses and decrease its total return.","page_number":70,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"cd69d486-3524-41dd-b4f9-66cc85b9903f","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":70,"box":{"x":70,"y":75,"width":798,"height":11}},{"id":"06d05a4f-a025-4aa9-94b4-b1ace6ee2c5f","block_type":"box","text":"activities when movements in currency exchange rates actually occur.","page_number":70,"box":{"x":69,"y":90,"width":493,"height":11}},{"id":"fcd58d9e-2d4c-4072-a4a6-faa61bc44620","block_type":"box","text":"In connection with its trading in forward foreign currency contracts, a Fund will contract with a foreign or","page_number":70,"box":{"x":102,"y":113,"width":738,"height":11}},{"id":"ec679dca-50e6-42b9-b27e-c13c2854d7b6","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":70,"box":{"x":69,"y":128,"width":814,"height":11}},{"id":"0bcb6938-5483-4d02-88b6-034d0c605da9","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":70,"box":{"x":70,"y":143,"width":819,"height":11}},{"id":"63ab5a41-a34c-401c-bbb5-6181b6cfbfba","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":70,"box":{"x":69,"y":158,"width":834,"height":11}},{"id":"047f6095-b693-42ab-91aa-1ce07317d9b0","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":70,"box":{"x":69,"y":173,"width":797,"height":11}},{"id":"f30172b7-6106-4bab-b43f-9eb7767cb3e4","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":70,"box":{"x":69,"y":188,"width":794,"height":11}},{"id":"cf505867-f870-45f4-8bfc-a659ca1e772b","block_type":"box","text":"Governmental imposition of currency controls might limit any such forward contract trading. With respect to its trading","page_number":70,"box":{"x":69,"y":203,"width":841,"height":12}},{"id":"9d0bd9d1-de93-44c2-90c1-74abea4eebb3","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":70,"box":{"x":69,"y":218,"width":831,"height":12}},{"id":"44b0348b-3606-431f-a6aa-aceedd584909","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":70,"box":{"x":68,"y":234,"width":805,"height":11}},{"id":"3760578e-3173-4013-8a4a-88dd98fb9c86","block_type":"box","text":"then market price and could result in a loss to the Fund.","page_number":70,"box":{"x":68,"y":249,"width":401,"height":11}},{"id":"bd223cda-dc68-498b-b719-0ffba9a35acd","block_type":"box","text":"It may not be possible for a Fund to hedge against currency exchange rate movements, even if correctly","page_number":70,"box":{"x":102,"y":271,"width":738,"height":12}},{"id":"743d466a-0aa5-4bb5-862f-d9d42f02345b","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":70,"box":{"x":69,"y":287,"width":837,"height":11}},{"id":"f07b132d-6ff7-4434-b41a-01393c1caecd","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":70,"box":{"x":69,"y":302,"width":837,"height":11}},{"id":"fe5d8aca-dc63-4ab3-878b-7efc28bad877","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":70,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"3761651a-d7b4-4561-b5a2-f18ef37849db","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":70,"box":{"x":68,"y":332,"width":829,"height":11}},{"id":"80f0f2a3-a601-4d8c-9335-2654523a57f5","block_type":"box","text":"the currencies involved, the length of the contract period and the market conditions then prevailing. Since","page_number":70,"box":{"x":68,"y":347,"width":753,"height":11}},{"id":"88ef3ae0-9e15-4c87-b04f-0a10d575d57c","block_type":"box","text":"transactions in foreign currency exchange usually are conducted on a principal basis, no fees or commissions are","page_number":70,"box":{"x":68,"y":362,"width":811,"height":11}},{"id":"74bc2243-4756-4e43-abfa-9d5de60d9360","block_type":"box","text":"involved.","page_number":70,"box":{"x":70,"y":377,"width":59,"height":9}},{"id":"74fc05e3-1863-4c6b-a6a3-e72c6572a16b","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":70,"box":{"x":101,"y":400,"width":803,"height":11}},{"id":"579178fe-5146-43f5-8086-97fc2de18e3e","block_type":"box","text":"receivables for unsettled securities sales), or has committed to purchase or anticipates purchasing, which are","page_number":70,"box":{"x":69,"y":415,"width":785,"height":11}},{"id":"1b3ca200-8fbb-424c-8fec-a9fcb4157b61","block_type":"box","text":"denominated in such currency.","page_number":70,"box":{"x":69,"y":430,"width":216,"height":11}},{"id":"0a8c3eb9-b65d-4973-834d-1a5448df1623","block_type":"box","text":"Spot Transactions and FX Forwards.","page_number":70,"box":{"x":102,"y":453,"width":254,"height":11}},{"id":"072538ae-15c1-42f6-be96-047989caeb87","block_type":"box","text":"FX forwards are OTC contracts to purchase or sell a specified amount of a","page_number":70,"box":{"x":364,"y":453,"width":527,"height":11}},{"id":"fe54705a-82a8-469f-ac95-177252a7e9bc","block_type":"box","text":"specified currency or multinational currency unit at a specified price and specified future date. Spot foreign exchange","page_number":70,"box":{"x":69,"y":468,"width":834,"height":11}},{"id":"748c1013-a3a6-4faa-9d33-3bad23e8aabc","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":70,"box":{"x":68,"y":483,"width":798,"height":11}},{"id":"a8a14b8b-a756-4f8d-a200-51e7b5346a2b","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":70,"box":{"x":68,"y":498,"width":817,"height":11}},{"id":"967bb1d7-7bb0-4967-b255-bd6a4022a743","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":70,"box":{"x":70,"y":513,"width":830,"height":11}},{"id":"2b93dc2f-97f3-4795-9ea4-5cbc8914c84b","block_type":"box","text":"may enter into a foreign exchange transaction for purposes of hedging a specific transaction by, for example,","page_number":70,"box":{"x":69,"y":528,"width":774,"height":12}},{"id":"9e84576d-7f42-4bc8-9a2c-5341e6f1dc45","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":70,"box":{"x":70,"y":544,"width":828,"height":11}},{"id":"982c8818-4526-4ee5-920d-0a69f49dae02","block_type":"box","text":"anticipates receiving a dividend or distribution. A Fund may enter into a foreign exchange transaction for purposes of","page_number":70,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"efcfa336-1365-4b28-bbf4-69ecb92ef88b","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":70,"box":{"x":69,"y":574,"width":826,"height":11}},{"id":"b309d934-0544-4626-bd83-7e2910a6d85a","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":70,"box":{"x":69,"y":589,"width":819,"height":11}},{"id":"8d4b9053-49b6-46da-88b3-da3dc97e56d8","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":70,"box":{"x":69,"y":604,"width":822,"height":11}},{"id":"5977a6ab-393d-42fc-a57c-66bfbc24624c","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":70,"box":{"x":68,"y":619,"width":819,"height":11}},{"id":"3d144935-d4a2-4b3b-9345-4c1d6f46e259","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":70,"box":{"x":69,"y":634,"width":814,"height":12}},{"id":"04262f2b-6aba-4a8c-810a-0ce73fd45957","block_type":"box","text":"currency being hedged, and (ii) executing a cross-hedge through the currency in which the cross-hedge is","page_number":70,"box":{"x":69,"y":650,"width":745,"height":11}},{"id":"9612d64e-3fb2-4ca6-a21b-962987c79a12","block_type":"box","text":"denominated will be significantly more cost-effective or provide substantially greater liquidity than executing a similar","page_number":70,"box":{"x":69,"y":664,"width":832,"height":12}},{"id":"4c5b22fc-4c7f-404c-a0d6-f5e01a22cf1b","block_type":"box","text":"hedging transaction by means of the currency being hedged.","page_number":70,"box":{"x":69,"y":680,"width":428,"height":11}},{"id":"18a33324-eb41-4560-aa01-36cc7e1da2b1","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":70,"box":{"x":101,"y":702,"width":797,"height":12}},{"id":"d913858c-b4d4-4d4a-80fe-e3debe9e1595","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":70,"box":{"x":69,"y":717,"width":829,"height":12}},{"id":"bbbc7f85-2c43-4d62-a192-7bb555a33749","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":70,"box":{"x":70,"y":732,"width":838,"height":12}},{"id":"a2e916e9-7495-485c-8adf-f1dd51dfb221","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":70,"box":{"x":69,"y":748,"width":823,"height":11}},{"id":"0c8e928d-f4b3-453c-bf2d-569c133d19eb","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":70,"box":{"x":70,"y":763,"width":827,"height":11}},{"id":"77c21f9f-9a4b-4c48-8d21-d65a59eb6451","block_type":"box","text":"hedging involves some of the same risks and considerations as other transactions with similar instruments. Currency","page_number":70,"box":{"x":69,"y":778,"width":838,"height":11}},{"id":"d6c7afc9-03d5-49c8-8b34-0e76a2c8c98d","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":70,"box":{"x":68,"y":793,"width":798,"height":11}},{"id":"002a2ed0-7ca5-4399-b82b-1d1a39ba30c9","block_type":"box","text":"direction that is not anticipated. In addition, there is the risk that the perceived linkage between various currencies","page_number":70,"box":{"x":69,"y":808,"width":819,"height":11}},{"id":"a2aebd1d-ff3b-43fc-b5d0-7accd7ef4cd9","block_type":"box","text":"may not be present, including during the par ticular time that a Fund is engaging in proxy hedging.","page_number":70,"box":{"x":69,"y":823,"width":691,"height":12}},{"id":"274a4aef-18c1-4b04-9fe2-2e38e814f8b6","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":70,"box":{"x":101,"y":846,"width":785,"height":11}},{"id":"e8085695-7682-497a-8116-0da0e59fee0e","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":70,"box":{"x":69,"y":861,"width":811,"height":11}},{"id":"74e9e5fc-2f19-404e-8c28-5d8cbf165b80","block_type":"box","text":"have por tfolio exposure. For example, a Fund may hold both Canadian government bonds and Japanese government","page_number":70,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"8b87ee10-c729-4b2b-8120-48986380b5a6","block_type":"box","text":"bonds, and the Manager or sub-adviser may believe that Canadian dollars will deteriorate against Japanese yen. The","page_number":70,"box":{"x":69,"y":891,"width":829,"height":12}},{"id":"ad2ca2cb-cb0e-46cb-90e6-01d973f6f566","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":70,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"66d2699b-3b64-4285-99dd-d85b3527c2f1","block_type":"box","text":"II-24","page_number":70,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6ea3be49-9b2d-4260-94a6-04919add5fe4","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":70,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8e592006-9504-4437-a772-c1037c5c71a1","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":71,"box":{"x":69,"y":45,"width":818,"height":11}},{"id":"a38a8144-ff88-47e1-80b2-fd620e8d861a","block_type":"box","text":"value of the Japanese yen relative to the U.S. dollar.","page_number":71,"box":{"x":68,"y":60,"width":372,"height":11}},{"id":"64b9cb73-6f17-4098-88d2-a16517325307","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":71,"box":{"x":102,"y":82,"width":768,"height":12}},{"id":"b6c784b8-a5df-45ba-b37b-59cb242c2a66","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":71,"box":{"x":68,"y":98,"width":838,"height":11}},{"id":"4a379bf9-089b-4e8e-999d-66ca7bc36b27","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":71,"box":{"x":70,"y":113,"width":829,"height":11}},{"id":"9dfe693a-0c5c-46a0-b00e-f55eec84a3cc","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":71,"box":{"x":68,"y":128,"width":806,"height":11}},{"id":"dea675a3-3d2b-459d-9678-74b933280537","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":71,"box":{"x":69,"y":143,"width":839,"height":11}},{"id":"a6baa4ed-6e63-4619-b5a9-233de8637203","block_type":"box","text":"the difference between the prevailing market exchange rate and the agreed upon exchange rate is calculated. The","page_number":71,"box":{"x":68,"y":158,"width":812,"height":11}},{"id":"39e704c8-dcd8-4d4f-b7a1-fd6ea4c3d099","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":71,"box":{"x":69,"y":173,"width":821,"height":11}},{"id":"229a86a4-1253-4694-b2bf-dabcfab58e28","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":71,"box":{"x":69,"y":188,"width":835,"height":11}},{"id":"6a4df5b3-965d-4dd5-8c05-4c909f2cf206","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":71,"box":{"x":68,"y":203,"width":802,"height":12}},{"id":"6955fa10-6957-41db-9e62-f8da279b4560","block_type":"box","text":"traded.","page_number":71,"box":{"x":68,"y":219,"width":49,"height":8}},{"id":"52b4c00e-8354-430e-b97f-abb782116fb7","block_type":"box","text":"Currency Futures.","page_number":71,"box":{"x":102,"y":241,"width":123,"height":11}},{"id":"bb48bce1-8ea7-4d19-b119-5ed2bbf48561","block_type":"box","text":"A Fund may seek to enhance returns or hedge against the decline in the value of a currency","page_number":71,"box":{"x":232,"y":241,"width":654,"height":11}},{"id":"81b8b036-c630-4e9f-9207-d85a9b764629","block_type":"box","text":"through use of currency futures or options on currency futures. Currency futures are similar to forward foreign","page_number":71,"box":{"x":68,"y":256,"width":782,"height":12}},{"id":"eafc96ac-1333-47f7-a139-344709a84221","block_type":"box","text":"exchange transactions except that futures are standardized, exchange-traded contracts while forward foreign","page_number":71,"box":{"x":69,"y":271,"width":774,"height":12}},{"id":"9113906e-2cf2-492e-b566-0bc4464fa3bb","block_type":"box","text":"exchange transactions are traded in the OTC market. Currency futures involve substantial currency risk as well as the","page_number":71,"box":{"x":69,"y":286,"width":836,"height":12}},{"id":"28f1942c-10b1-413b-94bc-32ce6b8c2953","block_type":"box","text":"risks discussed above in “—Futures.”","page_number":71,"box":{"x":69,"y":302,"width":269,"height":9}},{"id":"8519fb80-efdc-420e-84a8-71d4d13617a1","block_type":"box","text":"Currency Options.","page_number":71,"box":{"x":102,"y":324,"width":125,"height":11}},{"id":"cfb71bb5-bc8b-4fc6-9fb9-b9925eb11a86","block_type":"box","text":"A Fund may seek to enhance returns or hedge against the decline in the value of a currency","page_number":71,"box":{"x":233,"y":324,"width":654,"height":12}},{"id":"512d0211-9eef-4ad7-81fe-1b75ff9835e5","block_type":"box","text":"through the use of currency options. Cer tain Funds have fundamental investment restrictions that permit the","page_number":71,"box":{"x":68,"y":339,"width":776,"height":12}},{"id":"9c8b35dc-d5a8-4f9a-89b6-e1913ae18765","block_type":"box","text":"purchase of currency options, but prohibit the writing of currency options. Currency options are similar to options on","page_number":71,"box":{"x":70,"y":355,"width":825,"height":11}},{"id":"5158ff2d-0ffc-4271-85da-4978eabdff7e","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":71,"box":{"x":69,"y":370,"width":827,"height":11}},{"id":"66917499-3bf6-4906-b6b3-bb40ab296eb0","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":71,"box":{"x":68,"y":385,"width":820,"height":11}},{"id":"26b95c5d-6ca7-4bda-8fa9-e5dafb8ebd61","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":71,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"ea12b758-3531-4b92-b398-4ff3efbe2276","block_type":"box","text":"on currencies either on exchanges or OTC markets. Such transactions in options may include exotic options on","page_number":71,"box":{"x":69,"y":415,"width":790,"height":11}},{"id":"fc9d91d3-a1c3-405a-9240-a87488af79d8","block_type":"box","text":"currencies, which are typically traded in OTC markets and have additional features that result in different payment","page_number":71,"box":{"x":69,"y":430,"width":813,"height":11}},{"id":"e39c3ff8-1f1a-4726-803e-275b0453a5f8","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":71,"box":{"x":69,"y":446,"width":826,"height":10}},{"id":"9ad6a490-c95c-4fa5-a762-e002e2bfd8c6","block_type":"box","text":"on up to 100% of the currencies in its por tfolio. See “—Options” above. Currency options involve substantial","page_number":71,"box":{"x":69,"y":460,"width":776,"height":12}},{"id":"7d2da040-da50-4547-ad96-fa1629692e3a","block_type":"box","text":"currency risk, and may also involve credit, leverage or illiquidity risk.","page_number":71,"box":{"x":69,"y":476,"width":483,"height":11}},{"id":"310c8e85-ec6c-46ab-a454-20e74297fe43","block_type":"box","text":"Currency Swaps.","page_number":71,"box":{"x":102,"y":498,"width":117,"height":11}},{"id":"57bb786f-6c39-41d8-8067-17ce5e7ad2b2","block_type":"box","text":"A Fund may enter into currency swaps in order to protect against currency fluctuations or to","page_number":71,"box":{"x":225,"y":498,"width":652,"height":11}},{"id":"6c472a2b-c049-409e-887f-9a0ba656e5e9","block_type":"box","text":"hedge por tfolio positions. Currency swaps are transactions in which one currency is simultaneously bought for a","page_number":71,"box":{"x":69,"y":513,"width":799,"height":12}},{"id":"e5698a52-5790-48e8-8460-52321bdd03fe","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":71,"box":{"x":69,"y":528,"width":812,"height":12}},{"id":"008d8aa1-041b-482e-ae67-164bd93af08e","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":71,"box":{"x":69,"y":543,"width":836,"height":12}},{"id":"5875f32e-95a7-4a42-bcfb-960b06b8574f","block_type":"box","text":"require the delivery of the entire principal value of one designated currency in exchange for the other designated","page_number":71,"box":{"x":69,"y":559,"width":800,"height":11}},{"id":"00ba897e-8993-4037-82bf-c9aeb5fc3315","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":71,"box":{"x":69,"y":574,"width":810,"height":11}},{"id":"0f9da999-66af-4737-a2d1-169cc308f3f4","block_type":"box","text":"swap will default on its contractual delivery obligations.","page_number":71,"box":{"x":69,"y":589,"width":393,"height":11}},{"id":"3649f6d7-148b-4dff-bd05-b1efa0bbc0e3","block_type":"box","text":"Distressed Securities.","page_number":71,"box":{"x":102,"y":612,"width":159,"height":9}},{"id":"f2274df4-7840-4bb4-bc6d-6cb67c932c9b","block_type":"box","text":"A Fund may invest in securities, including loans purchased in the secondary market, that","page_number":71,"box":{"x":267,"y":612,"width":633,"height":11}},{"id":"4844027d-44ee-4acd-a80e-8c0681489b59","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":71,"box":{"x":69,"y":627,"width":834,"height":11}},{"id":"17e7315f-7b76-4558-aff1-fa034154a0c0","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":71,"box":{"x":70,"y":642,"width":827,"height":11}},{"id":"a416c9de-36aa-4085-8701-afbb28bec99f","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":71,"box":{"x":69,"y":657,"width":835,"height":11}},{"id":"076a8f68-fada-4c58-b643-5ab9132df307","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":71,"box":{"x":69,"y":672,"width":784,"height":11}},{"id":"c53f2cff-0718-46ec-994e-3327d9343faf","block_type":"box","text":"Investment in Distressed Securities is speculative and involves significant risks.","page_number":71,"box":{"x":70,"y":687,"width":569,"height":11}},{"id":"060b6b53-8065-4d8a-ae00-0cbe0e7545a5","block_type":"box","text":"A Fund will generally make such investments only when the Manager believes it is reasonably likely that the","page_number":71,"box":{"x":101,"y":710,"width":766,"height":11}},{"id":"5f38f98a-2485-44d1-b1d1-a31b4b9c6b0d","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":71,"box":{"x":70,"y":725,"width":795,"height":11}},{"id":"3fef9197-e628-49f7-9034-5826ee4eebdc","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":71,"box":{"x":70,"y":740,"width":826,"height":11}},{"id":"a87baa22-95e2-42b2-8bf2-3d5636557bdd","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":71,"box":{"x":69,"y":755,"width":794,"height":11}},{"id":"294586ee-5204-4aa4-9d0a-3e666f3668e2","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":71,"box":{"x":69,"y":770,"width":832,"height":12}},{"id":"8b013687-7842-49e5-9dbd-2494e0d17377","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":71,"box":{"x":69,"y":785,"width":824,"height":12}},{"id":"66b089bb-c00c-468e-af4a-b1f47d0da3a0","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":71,"box":{"x":69,"y":801,"width":789,"height":11}},{"id":"8074120c-4a8c-434d-8c70-d943fa5acc2d","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":71,"box":{"x":69,"y":816,"width":810,"height":11}},{"id":"995e0b97-3075-4d7c-b4e1-6eaec5e18470","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":71,"box":{"x":70,"y":831,"width":831,"height":11}},{"id":"66806ebf-a9ca-4ca6-b70c-afc2ac8d9799","block_type":"box","text":"extent the Fund seeks capital appreciation through investment in distressed securities, the Fund’s ability to achieve","page_number":71,"box":{"x":69,"y":846,"width":826,"height":11}},{"id":"3132db5a-c9a5-4340-a0e6-baf609818784","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":71,"box":{"x":69,"y":861,"width":827,"height":11}},{"id":"690d743c-0f4d-4fe3-a8fd-3b9046ff30ca","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":71,"box":{"x":68,"y":876,"width":834,"height":11}},{"id":"3e173890-779d-4d52-a7b0-4fdea28242ec","block_type":"box","text":"satisfied (","page_number":71,"box":{"x":69,"y":891,"width":70,"height":11}},{"id":"7fd31ca6-d3ba-4b34-9bbf-197b13cd7a00","block_type":"box","text":"e.g.","page_number":71,"box":{"x":140,"y":893,"width":25,"height":10}},{"id":"4967412d-f766-4e9e-a819-df82bada649a","block_type":"box","text":", through a liquidation of the obligor’s assets, an exchange offer or plan of reorganization involving the","page_number":71,"box":{"x":168,"y":891,"width":729,"height":12}},{"id":"0e5f0b32-bd27-4c4d-ac91-7abe141af994","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":71,"box":{"x":69,"y":906,"width":807,"height":12}},{"id":"0ddcc3f4-cbff-465d-a757-b3e6b576a205","block_type":"box","text":"II-25","page_number":71,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"af5ae857-aed8-4d35-b2b0-e6cc4d81dc9b","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":71,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1f245a32-0f8a-4aaf-94ec-0a95ffc889d7","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":72,"box":{"x":69,"y":45,"width":797,"height":11}},{"id":"0c0eadb9-6a14-47aa-939a-8eb3936dc298","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":72,"box":{"x":69,"y":60,"width":816,"height":11}},{"id":"1d89f2cf-5378-4567-bd05-0a5d4fe880b9","block_type":"box","text":"reorganization will not have a lower value or income potential than may have been anticipated when the investment","page_number":72,"box":{"x":69,"y":75,"width":821,"height":11}},{"id":"6f44833e-cd8d-4e25-8275-e0f6cb15b797","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":72,"box":{"x":68,"y":90,"width":827,"height":11}},{"id":"fe4f0ac9-0781-4b5a-8e61-a3d4bc3c7c8b","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":72,"box":{"x":69,"y":105,"width":800,"height":11}},{"id":"be5a68a1-1bec-4619-96a3-567d3c174090","block_type":"box","text":"exchange offer or plan of reorganization with respect to an issuer of Distressed Securities, the Fund may be","page_number":72,"box":{"x":69,"y":120,"width":770,"height":12}},{"id":"9c56f88a-e8b7-4e3d-a584-07681fc99e5f","block_type":"box","text":"restricted from disposing of such securities. To the extent that a Fund becomes involved in such proceedings, the","page_number":72,"box":{"x":69,"y":135,"width":809,"height":12}},{"id":"885bfd3e-bda2-47ee-9f95-4a1c4eff34ef","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":72,"box":{"x":70,"y":150,"width":839,"height":12}},{"id":"1b7e2f32-fd68-4ceb-a826-6179b4826438","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":72,"box":{"x":70,"y":166,"width":787,"height":11}},{"id":"9764419d-f783-48c7-a402-11406e79b7f9","block_type":"box","text":"affairs.","page_number":72,"box":{"x":69,"y":181,"width":49,"height":9}},{"id":"9de091a8-1deb-4fc9-a5dd-8905dd00db52","block_type":"box","text":"Environmental, Social and Governance (“ESG”) Integration","page_number":72,"box":{"x":102,"y":203,"width":428,"height":11}},{"id":"bdf2f09a-4a3e-495c-83f1-9d2f0df6bd71","block_type":"box","text":". Although a Fund does not seek to implement a","page_number":72,"box":{"x":531,"y":204,"width":341,"height":11}},{"id":"b5471623-e8b7-45d9-ba82-7000d2cd303d","block_type":"box","text":"specific sustainability objective, strategy or process unless disclosed in its Prospectus, Fund management will","page_number":72,"box":{"x":69,"y":218,"width":785,"height":12}},{"id":"58369a5e-f665-4a32-a5a8-e58fd16b67f4","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":72,"box":{"x":69,"y":234,"width":838,"height":11}},{"id":"0e047752-86cb-4b99-8378-8e90df7e949f","block_type":"box","text":"practice of incorporating financially material ESG data or information into investment processes with the objective of","page_number":72,"box":{"x":70,"y":249,"width":827,"height":11}},{"id":"b5f07f06-9349-4218-ada3-69b3797cc72b","block_type":"box","text":"enhancing risk-adjusted returns. These ESG considerations will vary depending on a Fund’s par ticular investment","page_number":72,"box":{"x":69,"y":264,"width":806,"height":11}},{"id":"f3953d10-18ae-4f25-86d5-acd4fb3fb83c","block_type":"box","text":"strategies and may include consideration of third-par ty research as well as consideration of proprietary BlackRock","page_number":72,"box":{"x":69,"y":279,"width":812,"height":11}},{"id":"6101e593-6806-43ab-a6b5-805499719f42","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":72,"box":{"x":69,"y":294,"width":807,"height":11}},{"id":"d10b6185-5aba-4cb3-8564-25f1cc698f16","block_type":"box","text":"investment process are anticipated to evolve over time and one or more characteristics may not be relevant with","page_number":72,"box":{"x":70,"y":309,"width":800,"height":11}},{"id":"2841f1ca-fb5f-4188-8305-24176936d026","block_type":"box","text":"respect to all issuers that are eligible for investment.","page_number":72,"box":{"x":69,"y":324,"width":377,"height":12}},{"id":"6948ab29-2450-4d36-84cc-9cfa8d607565","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":72,"box":{"x":102,"y":347,"width":778,"height":11}},{"id":"497eb445-8588-4ca4-bb88-301f7511aa9a","block_type":"box","text":"management views ESG considerations as having the potential to contribute to a Fund’s long-term per formance,","page_number":72,"box":{"x":69,"y":362,"width":800,"height":11}},{"id":"d78c5477-f951-4e76-bd77-5a07a9fcc237","block_type":"box","text":"there is no guarantee that such results will be achieved.","page_number":72,"box":{"x":68,"y":377,"width":400,"height":12}},{"id":"ca6816e2-8e14-472b-b09b-0131d83a7ea9","block_type":"box","text":"Equity Securities.","page_number":72,"box":{"x":102,"y":400,"width":127,"height":11}},{"id":"b8bc9655-d8f3-498d-ac7f-ddbc7ab6388f","block_type":"box","text":"Cer tain Funds may invest in equity securities, which include common stock and, for cer tain","page_number":72,"box":{"x":235,"y":400,"width":648,"height":11}},{"id":"e49a77f1-d5e0-488e-a4ec-7eee2ad234bc","block_type":"box","text":"Funds, preferred stock (including conver tible preferred stock); bonds, stock purchase warrants and rights; equity","page_number":72,"box":{"x":70,"y":415,"width":802,"height":11}},{"id":"898dbe34-9bfc-4190-a9de-0eb995e7441c","block_type":"box","text":"interests in trusts; general and limited par tnerships and limited liability companies; and depositary receipts. Stock","page_number":72,"box":{"x":70,"y":430,"width":817,"height":11}},{"id":"89d66f0e-fe85-48f3-bd6d-d5fa06f31c95","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":72,"box":{"x":69,"y":445,"width":819,"height":11}},{"id":"25d9ccc8-2b64-43de-84c0-dfb307c668bf","block_type":"box","text":"investing in equities. The price of equity securities fluctuates based on changes in a company’s financial condition","page_number":72,"box":{"x":70,"y":460,"width":813,"height":12}},{"id":"35bf5320-7e33-4e12-bc94-161d95cffdd3","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":72,"box":{"x":69,"y":475,"width":839,"height":12}},{"id":"d849fed9-9a89-4581-a0c8-1ea1e20113e0","block_type":"box","text":"financial condition of the companies the Fund invests in decline or if overall market and economic conditions","page_number":72,"box":{"x":68,"y":491,"width":775,"height":11}},{"id":"f08070fe-e7af-49d3-8538-bcd646c60612","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":72,"box":{"x":69,"y":506,"width":777,"height":11}},{"id":"81c9ac8b-7dab-4cbb-9cb5-7d095ca7b5ee","block_type":"box","text":"shor tages or increase in production costs and competitive conditions within an industry. In addition, they may decline","page_number":72,"box":{"x":69,"y":521,"width":837,"height":11}},{"id":"25ef4ab7-6832-4348-b9af-c90d7530fec6","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":72,"box":{"x":69,"y":536,"width":831,"height":11}},{"id":"6fa82a0f-2b6f-4ed4-ab06-bbe58b4ee529","block_type":"box","text":"adverse economic conditions, changes in the general outlook for corporate earnings, changes in interest or currency","page_number":72,"box":{"x":69,"y":551,"width":829,"height":11}},{"id":"4eff45b5-7335-495f-89cf-3f08edccb062","block_type":"box","text":"rates or generally adverse investor sentiment.","page_number":72,"box":{"x":69,"y":566,"width":325,"height":11}},{"id":"7fb9e1f4-05f4-4190-9c43-09718171cc86","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":72,"box":{"x":102,"y":589,"width":745,"height":11}},{"id":"af604717-a82c-478c-b3e1-1e78b1f4d204","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":72,"box":{"x":69,"y":604,"width":833,"height":11}},{"id":"5e7cd3f9-2b51-4cc6-ac1d-1838ecb16ff3","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":72,"box":{"x":69,"y":619,"width":824,"height":11}},{"id":"33015041-bb43-4ff4-a712-d0cab318652b","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":72,"box":{"x":68,"y":634,"width":834,"height":12}},{"id":"ea8ea93b-69fe-44fc-b6ef-96cdfc9ed484","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":72,"box":{"x":70,"y":649,"width":782,"height":12}},{"id":"500024bc-aa6c-4516-9d2a-700d9ea28bcd","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":72,"box":{"x":69,"y":664,"width":790,"height":12}},{"id":"029f5691-de59-4995-aef3-75545de02dbe","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":72,"box":{"x":70,"y":680,"width":823,"height":11}},{"id":"1081bfba-a8e2-4bb7-b6dd-083f0dff69de","block_type":"box","text":"Securities issued in IPOs have no trading history, and information about the companies may be available for very","page_number":72,"box":{"x":69,"y":695,"width":805,"height":11}},{"id":"c0708300-47ba-4744-8798-888faf50388c","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":72,"box":{"x":70,"y":710,"width":836,"height":11}},{"id":"7125c8e5-80d2-49ef-9b7e-80aaeed8084a","block_type":"box","text":"initial public offering.","page_number":72,"box":{"x":70,"y":725,"width":147,"height":11}},{"id":"8165285c-d211-45a1-867d-9ebe7d669bc9","block_type":"box","text":"The Funds may invest in companies that have relatively small market capitalizations. These organizations will","page_number":72,"box":{"x":101,"y":748,"width":777,"height":11}},{"id":"37aae6fa-a05a-4ce6-890e-fda0dc42de21","block_type":"box","text":"normally have more limited product lines, markets and financial resources and will be dependent upon a more limited","page_number":72,"box":{"x":69,"y":763,"width":838,"height":11}},{"id":"5daccc9b-9ef2-4d18-9ed5-94478669dfe5","block_type":"box","text":"management group than larger capitalized companies. In addition, it is more difficult to get information on smaller","page_number":72,"box":{"x":69,"y":778,"width":815,"height":11}},{"id":"2374afa7-0a44-4203-8194-144486a64eeb","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":72,"box":{"x":69,"y":793,"width":829,"height":11}},{"id":"3bb71a7c-03de-402d-9a76-3602f2998cd2","block_type":"box","text":"large investors and are followed by relatively few securities analysts. The securities of smaller capitalized companies","page_number":72,"box":{"x":70,"y":808,"width":831,"height":11}},{"id":"69363229-63e1-4e7f-bb49-932f101d55a7","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":72,"box":{"x":69,"y":823,"width":826,"height":11}},{"id":"689f8030-0244-475e-8b9b-78ff2246f9e8","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":72,"box":{"x":68,"y":838,"width":810,"height":12}},{"id":"894a1c63-5909-457f-a08e-ab23a273eba1","block_type":"box","text":"more established companies.","page_number":72,"box":{"x":69,"y":854,"width":209,"height":10}},{"id":"08c592ca-51c3-49ff-ab7c-39c3fc06f880","block_type":"box","text":"II-26","page_number":72,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"9db88365-7523-4588-b1c6-d25ac900e19d","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":72,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d9588470-5b93-481b-ad8c-9ed9a472432e","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":73,"box":{"x":102,"y":45,"width":776,"height":11}},{"id":"0baa790f-e50f-4b4c-a411-24cfda58c34a","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":73,"box":{"x":70,"y":60,"width":810,"height":11}},{"id":"5ee0c7aa-ea1e-4211-abbe-5fa1779fb4c8","block_type":"box","text":"private companies, which are subject to the risks of “Illiquid Investments” and “Restricted Securities” described","page_number":73,"box":{"x":70,"y":75,"width":799,"height":11}},{"id":"22def979-e1c6-4b0f-8189-479626352f0a","block_type":"box","text":"below.","page_number":73,"box":{"x":69,"y":90,"width":43,"height":9}},{"id":"8863a191-593f-4108-9606-ff8226902b98","block_type":"box","text":"Real Estate-Related Securities.","page_number":73,"box":{"x":102,"y":113,"width":219,"height":9}},{"id":"5211c862-376b-46af-a010-ab64ff0975d4","block_type":"box","text":"Although no Fund may invest directly in real estate, cer tain Funds may invest in","page_number":73,"box":{"x":327,"y":113,"width":565,"height":11}},{"id":"f2bda7c4-7e38-4c00-ab5b-6a02b8ab7664","block_type":"box","text":"equity securities of issuers that are principally engaged in the real estate industry. Such investments are subject to","page_number":73,"box":{"x":69,"y":128,"width":822,"height":11}},{"id":"631db086-51ef-4686-937f-d4f19ed1ec63","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":73,"box":{"x":69,"y":143,"width":814,"height":11}},{"id":"6606cd75-6f72-4d09-ad68-ce4613f373b8","block_type":"box","text":"include, among others: possible declines in the value of real estate; risks related to general and local economic","page_number":73,"box":{"x":70,"y":158,"width":796,"height":11}},{"id":"9f03bffd-75a8-4707-be99-99c68f0f578b","block_type":"box","text":"conditions; possible lack of availability of mor tgage funds or other limitations on access to capital; overbuilding; risks","page_number":73,"box":{"x":69,"y":173,"width":836,"height":11}},{"id":"b303ffbc-271a-4bd9-8cd4-1662bb0e3180","block_type":"box","text":"associated with leverage; market illiquidity; extended vacancies of proper ties; increase in competition, proper ty","page_number":73,"box":{"x":69,"y":188,"width":795,"height":12}},{"id":"a5bdc279-a128-4885-96e3-4caacc92efae","block_type":"box","text":"taxes, capital expenditures and operating expenses; changes in zoning laws or other governmental regulation; costs","page_number":73,"box":{"x":68,"y":204,"width":828,"height":11}},{"id":"8e72f481-53c2-4b0a-8960-d65b3f6a3e33","block_type":"box","text":"resulting from the clean-up of, and liability to third par ties for damages resulting from, environmental problems;","page_number":73,"box":{"x":69,"y":218,"width":794,"height":12}},{"id":"165a524d-b802-49c5-bd87-3290cc7db3c8","block_type":"box","text":"tenant bankruptcies or other credit problems; casualty or condemnation losses; uninsured damages from floods,","page_number":73,"box":{"x":68,"y":234,"width":805,"height":11}},{"id":"e3699146-228d-45d7-af19-e4a5c620f58b","block_type":"box","text":"ear thquakes or other natural disasters; limitations on and variations in rents, including decreases in market rates for","page_number":73,"box":{"x":69,"y":249,"width":836,"height":11}},{"id":"f40c5082-54f3-4fed-ae2e-a81498d75ddc","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":73,"box":{"x":69,"y":264,"width":838,"height":11}},{"id":"7b4e1638-7f7b-452b-90df-8d03dfc088d7","block_type":"box","text":"interest rates. To the extent that assets underlying a Fund’s investments are concentrated geographically, by proper ty","page_number":73,"box":{"x":70,"y":279,"width":838,"height":11}},{"id":"c67e87fa-58df-4660-9f5f-9dad88a40c3c","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":73,"box":{"x":68,"y":294,"width":785,"height":11}},{"id":"add1692c-29e4-4730-808a-a8b7df9daabc","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":73,"box":{"x":70,"y":309,"width":836,"height":11}},{"id":"ba90837d-9785-4fee-be31-d0b2fbac746a","block_type":"box","text":"with refinancings and their impact on servicing rights.","page_number":73,"box":{"x":68,"y":324,"width":381,"height":12}},{"id":"ef54c05b-b6b0-4ba6-98f0-6323805d75ab","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":73,"box":{"x":102,"y":347,"width":797,"height":11}},{"id":"84fadb66-d7ee-430f-805c-648f4c0040f9","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":73,"box":{"x":69,"y":362,"width":829,"height":11}},{"id":"9d887e4d-0dc3-48c5-bb3f-21fb2284dddd","block_type":"box","text":"its tax status as a regulated investment company because of cer tain income source requirements applicable to","page_number":73,"box":{"x":70,"y":377,"width":794,"height":12}},{"id":"689b106d-68b0-4063-8f51-f704e9ab5f6b","block_type":"box","text":"regulated investment companies under the Internal Revenue Code of 1986, as amended (the “Code”).","page_number":73,"box":{"x":69,"y":392,"width":730,"height":12}},{"id":"5fcdfe73-ac24-422b-9edb-7d0eb3e00dc9","block_type":"box","text":"Securities of Smaller or Emerging Growth Companies.","page_number":73,"box":{"x":102,"y":415,"width":381,"height":11}},{"id":"cc357022-c1fe-4084-8ffa-a2ed7a536485","block_type":"box","text":"Investment in smaller or emerging growth companies","page_number":73,"box":{"x":490,"y":415,"width":376,"height":11}},{"id":"06013361-f0a9-4e3c-8494-8f2ab1e806ca","block_type":"box","text":"involves greater risk than is customarily associated with investments in more established companies. The securities","page_number":73,"box":{"x":70,"y":430,"width":828,"height":11}},{"id":"af8fb0b1-86b3-4b92-87d5-f0340c3f173d","block_type":"box","text":"of smaller or emerging growth companies may be subject to more abrupt or erratic market movements than larger,","page_number":73,"box":{"x":69,"y":445,"width":815,"height":12}},{"id":"add22b32-15f9-4878-932c-f2e6c1c4f09e","block_type":"box","text":"more established companies or the market average in general. These companies may have limited product lines,","page_number":73,"box":{"x":69,"y":461,"width":804,"height":11}},{"id":"ad9049f4-a860-4698-8cf3-8c4a45af8f84","block_type":"box","text":"markets or financial resources, or they may be dependent on a limited management group.","page_number":73,"box":{"x":69,"y":475,"width":647,"height":12}},{"id":"09ab9e1b-25d7-4089-bf6f-4b96ae470d73","block_type":"box","text":"Investments in smaller or emerging growth companies may involve greater risks and thus may be considered","page_number":73,"box":{"x":102,"y":498,"width":773,"height":11}},{"id":"2c599e57-dfd0-41cf-9d3d-c0e02aa0a296","block_type":"box","text":"speculative. Full development of these companies and trends frequently takes time.","page_number":73,"box":{"x":69,"y":513,"width":597,"height":11}},{"id":"ab1e190b-1545-4abe-9bb2-4b478e06bf4d","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":73,"box":{"x":102,"y":536,"width":797,"height":11}},{"id":"cfaaeaed-f86a-4b5b-97d0-a7bc58932ff9","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":73,"box":{"x":69,"y":551,"width":832,"height":11}},{"id":"4f441941-54b8-420c-b95a-94d62ce438ad","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":73,"box":{"x":69,"y":566,"width":808,"height":11}},{"id":"50628281-cbea-4687-99d8-b8b8ea3fd2fe","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":73,"box":{"x":69,"y":581,"width":825,"height":12}},{"id":"fedbc89b-aad6-49d6-8f40-1e057bd66a00","block_type":"box","text":"during periods when, in Fund management’s judgment, such disposition is not desirable.","page_number":73,"box":{"x":69,"y":597,"width":631,"height":11}},{"id":"df17fb74-ab48-47ed-81f1-c15060418a91","block_type":"box","text":"The process of selection and continuous supervision by Fund management does not guarantee successful","page_number":73,"box":{"x":101,"y":619,"width":758,"height":11}},{"id":"8fdd7ea8-8d97-4c43-88e8-fd1856e319ab","block_type":"box","text":"investment results. Careful initial selection is par ticularly impor tant in this area as many new enterprises have","page_number":73,"box":{"x":70,"y":634,"width":787,"height":11}},{"id":"dc1fa98b-e382-4a14-97ac-31ae1d02ac4f","block_type":"box","text":"promise but lack cer tain of the fundamental factors necessary to prosper. Investing in small cap and emerging","page_number":73,"box":{"x":70,"y":649,"width":789,"height":12}},{"id":"fc052454-4dda-45c6-a845-50c750b9bd0b","block_type":"box","text":"growth companies requires specialized research and analysis.","page_number":73,"box":{"x":68,"y":665,"width":442,"height":11}},{"id":"25263e33-69e7-4fac-b6f6-21653f547d00","block_type":"box","text":"Fund management believes that relatively small companies may have the oppor tunity to develop into significant","page_number":73,"box":{"x":102,"y":687,"width":795,"height":11}},{"id":"aa0222de-8b42-4328-8518-eea1dba960ed","block_type":"box","text":"business enterprises. A Fund may invest in securities of small issuers in the relatively early stages of business","page_number":73,"box":{"x":69,"y":702,"width":791,"height":12}},{"id":"7d800cdc-c210-4995-bc09-5a30359cad55","block_type":"box","text":"development that have a new technology, a unique or proprietary product or service, or a favorable market position.","page_number":73,"box":{"x":69,"y":717,"width":823,"height":12}},{"id":"d683f063-d938-45b1-b50c-4dd063d3aba2","block_type":"box","text":"Equity securities of specific small cap issuers may present different oppor tunities for long-term capital","page_number":73,"box":{"x":102,"y":740,"width":729,"height":11}},{"id":"07c93fd2-27af-415c-914d-5698ab216135","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":73,"box":{"x":69,"y":755,"width":837,"height":11}},{"id":"b9b0913f-e2a1-4768-8232-a002399ea616","block_type":"box","text":"business development. The market valuation of small cap issuers tends to fluctuate during economic or market","page_number":73,"box":{"x":69,"y":770,"width":794,"height":12}},{"id":"c41559e2-2b16-42ba-b986-f68a98af20aa","block_type":"box","text":"cycles.","page_number":73,"box":{"x":69,"y":786,"width":46,"height":11}},{"id":"d6ab8e19-43fd-4cee-a64b-768ec8eba130","block_type":"box","text":"Tracking Stocks","page_number":73,"box":{"x":103,"y":808,"width":110,"height":11}},{"id":"0f9f6495-4af6-4a8b-bdc8-b5cfc567472c","block_type":"box","text":". A tracking stock is a separate class of common stock whose value is linked to a specific","page_number":73,"box":{"x":214,"y":808,"width":640,"height":11}},{"id":"37cca006-1ad7-4455-959c-82137d334cfb","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":73,"box":{"x":69,"y":823,"width":791,"height":12}},{"id":"e186b7b5-b838-46b6-809d-d90ed9a8b3bd","block_type":"box","text":"business unit or division. The tracking stock may pay dividends to shareholders independent of the parent company.","page_number":73,"box":{"x":69,"y":838,"width":826,"height":12}},{"id":"21ab5ea8-6dbe-4222-a1c7-4144ff47ec9b","block_type":"box","text":"The parent company, rather than the business unit or division, generally is the issuer of tracking stock. However,","page_number":73,"box":{"x":68,"y":853,"width":801,"height":12}},{"id":"ff48f980-ab30-41b8-85b3-b5dec434347b","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":73,"box":{"x":69,"y":869,"width":740,"height":11}},{"id":"d1d17a8c-8713-458f-b24e-9a4429935cd4","block_type":"box","text":"Exchange-Traded Notes (“ETNs”).","page_number":73,"box":{"x":102,"y":891,"width":245,"height":11}},{"id":"7f0e1274-46d5-4c40-87c5-f2191fe35df6","block_type":"box","text":"Cer tain Funds may invest in ETNs. ETNs are generally notes representing","page_number":73,"box":{"x":354,"y":891,"width":521,"height":12}},{"id":"a67e4ce9-20df-49b9-b230-d30681d84f8a","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":73,"box":{"x":69,"y":906,"width":814,"height":12}},{"id":"f2414a60-14fc-418c-8b4b-9b100dddfd3e","block_type":"box","text":"II-27","page_number":73,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"57333b6f-2108-4765-9417-0bb0c7304572","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":73,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b8a4e8fe-70ad-4295-9f2b-e607444e6d9b","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":74,"box":{"x":69,"y":45,"width":774,"height":11}},{"id":"cd0cb3dd-7b4f-46c9-b7b4-ba8a45a5531f","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":74,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"72d9e8d9-7507-4257-9ffd-4ea51b0da84b","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":74,"box":{"x":70,"y":75,"width":831,"height":11}},{"id":"8fe674af-2af8-4186-a5b4-f0dfb7e8e4ff","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":74,"box":{"x":69,"y":90,"width":805,"height":11}},{"id":"32e88c11-b721-4442-afd3-e04342d36969","block_type":"box","text":"regular bonds, ETNs do not make periodic interest payments, and principal is not protected.","page_number":74,"box":{"x":69,"y":105,"width":654,"height":11}},{"id":"66696794-1a98-4b35-bec0-d4346cb06eab","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":74,"box":{"x":101,"y":128,"width":794,"height":11}},{"id":"146f1a3a-7323-4752-9232-64f6dab2c5d2","block_type":"box","text":"the ETN, volatility and lack of liquidity in underlying markets, changes in the applicable interest rates, the","page_number":74,"box":{"x":68,"y":143,"width":748,"height":11}},{"id":"0297c136-34e3-4883-b5c8-c17cfc9ba61e","block_type":"box","text":"per formance of the reference instrument, changes in the issuer’s credit rating and economic, legal, political or","page_number":74,"box":{"x":70,"y":158,"width":789,"height":11}},{"id":"3dd3d03d-6203-4e8f-aaf7-ba9b342cb217","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":74,"box":{"x":68,"y":173,"width":831,"height":11}},{"id":"4f7fb80a-efda-4b34-b116-a847cc7496bb","block_type":"box","text":"drop due to a downgrade in an issuer’s credit rating, despite the underlying reference instrument remaining","page_number":74,"box":{"x":69,"y":188,"width":766,"height":12}},{"id":"91ebee76-fa95-44f0-bbc4-ac358e6ed207","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":74,"box":{"x":69,"y":203,"width":828,"height":12}},{"id":"b60644eb-cfe1-4c5e-9d6a-a1b7aca23d33","block_type":"box","text":"ETN.","page_number":74,"box":{"x":70,"y":219,"width":30,"height":8}},{"id":"fe816d69-ff08-4d8c-b93a-d157a6546b05","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":74,"box":{"x":101,"y":241,"width":776,"height":11}},{"id":"a6193913-a390-4b10-8ae1-0b4fc8ca7de1","block_type":"box","text":"ETNs also incur cer tain expenses not incurred by their applicable reference instrument. Some ETNs that use leverage","page_number":74,"box":{"x":70,"y":256,"width":837,"height":12}},{"id":"0370865d-9e9e-493b-a71f-e23a4205052a","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":74,"box":{"x":69,"y":271,"width":840,"height":12}},{"id":"1b9ea43a-8295-4751-b40b-c1578108d169","block_type":"box","text":"risk as other instruments that use leverage in any form. While leverage allows for greater potential return, the","page_number":74,"box":{"x":69,"y":286,"width":781,"height":12}},{"id":"556af6a1-67ac-4c33-a280-fd542101670d","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":74,"box":{"x":70,"y":302,"width":827,"height":11}},{"id":"796fbce0-9038-4f4d-8efd-c90f15cdecc2","block_type":"box","text":"addition to the money lost on the investment, the loan still needs to be repaid.","page_number":74,"box":{"x":69,"y":317,"width":560,"height":11}},{"id":"68960e8f-7fc1-4be7-8bc3-599d5fd67142","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":74,"box":{"x":102,"y":340,"width":774,"height":11}},{"id":"1a7a0744-dedf-4351-ab4f-8502a14b5a02","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":74,"box":{"x":68,"y":355,"width":788,"height":11}},{"id":"4a064124-4ff8-4674-b844-8d5bdd9d3519","block_type":"box","text":"reference instrument. The market value of ETN shares may differ from the value of the reference instrument. This","page_number":74,"box":{"x":69,"y":370,"width":810,"height":11}},{"id":"5aafca66-dba4-4885-8fe9-e89e564f8335","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":74,"box":{"x":69,"y":385,"width":815,"height":11}},{"id":"a2787773-64b9-406a-9972-988fde3feb57","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":74,"box":{"x":68,"y":400,"width":766,"height":11}},{"id":"d689db74-cdab-4681-8e22-d69831dce954","block_type":"box","text":"instrument that the ETN seeks to track.","page_number":74,"box":{"x":70,"y":415,"width":279,"height":9}},{"id":"c8ae03bb-d1a0-407a-8d09-a982005e6b82","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":74,"box":{"x":101,"y":438,"width":791,"height":11}},{"id":"0b62264d-78d8-4d97-8869-86b3d235f31d","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":74,"box":{"x":69,"y":453,"width":818,"height":11}},{"id":"d97fb20a-c060-469d-8245-0f7eca18aef1","block_type":"box","text":"market. An investor in an ETN could lose some or all of the amount invested.","page_number":74,"box":{"x":69,"y":468,"width":547,"height":9}},{"id":"bd7f8e0a-697b-46d7-9afa-7cce3e5d6259","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":74,"box":{"x":102,"y":491,"width":807,"height":11}},{"id":"10973452-fb04-40a7-b9b4-e846d683ff6b","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":74,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"bf9565f5-2c78-486b-b270-bfc20ad18522","block_type":"box","text":"derived by a Fund from investments in ETNs may be affected by future legislation.","page_number":74,"box":{"x":69,"y":521,"width":581,"height":11}},{"id":"876066f7-8f14-43db-8585-af863971e0e6","block_type":"box","text":"Foreign Investments.","page_number":74,"box":{"x":102,"y":544,"width":152,"height":11}},{"id":"fc5db4bf-365f-4bbb-927d-0c66f02eb767","block_type":"box","text":"Foreign Investment Risks.","page_number":74,"box":{"x":102,"y":566,"width":182,"height":11}},{"id":"3f05789a-8368-447e-99c1-a8cf364b5ba4","block_type":"box","text":"Cer tain Funds may invest in foreign securities, including securities from issuers","page_number":74,"box":{"x":291,"y":566,"width":567,"height":11}},{"id":"5fd8721e-54d1-40b5-b244-0398272cbf86","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":74,"box":{"x":70,"y":581,"width":822,"height":12}},{"id":"979fbfea-e395-4371-9818-718a5409b214","block_type":"box","text":"Investing in foreign securities involves risks not typically associated with investing in securities of companies","page_number":74,"box":{"x":70,"y":596,"width":774,"height":12}},{"id":"00c51e38-1808-4860-9aaa-d87255eebaec","block_type":"box","text":"organized and operated in the United States that can increase the chances that a Fund will lose money.","page_number":74,"box":{"x":69,"y":612,"width":738,"height":11}},{"id":"a878fe86-0978-4656-88c2-786fabab1345","block_type":"box","text":"Securities issued by cer tain companies organized outside the United States may not be deemed to be foreign","page_number":74,"box":{"x":102,"y":634,"width":782,"height":12}},{"id":"a043644d-044a-4e20-a987-42cce75b0751","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":74,"box":{"x":69,"y":649,"width":824,"height":12}},{"id":"93e91f1a-7f1c-4dec-9250-e9a501ef7c4c","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":74,"box":{"x":70,"y":665,"width":771,"height":11}},{"id":"e87f95cd-12e7-4baa-b9e8-bfecb0a2a21e","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":74,"box":{"x":69,"y":680,"width":792,"height":11}},{"id":"23dba460-455a-4d17-8d3b-38efdae8d856","block_type":"box","text":"benchmark index.","page_number":74,"box":{"x":69,"y":695,"width":124,"height":9}},{"id":"ba2420dc-a447-409e-ae88-5893456de397","block_type":"box","text":"In addition to equity securities, foreign investments of the Funds may include: (a) debt obligations issued or","page_number":74,"box":{"x":102,"y":717,"width":767,"height":12}},{"id":"7ff46b82-e08a-43bd-86d7-9438e8db44ff","block_type":"box","text":"guaranteed by foreign sovereign governments or their agencies, authorities, instrumentalities or political","page_number":74,"box":{"x":68,"y":732,"width":742,"height":12}},{"id":"19eaa53b-4ae8-4f90-90fb-f45f28478b36","block_type":"box","text":"subdivisions, including a foreign state, province or municipality; (b) debt obligations of supranational organizations;","page_number":74,"box":{"x":69,"y":748,"width":818,"height":11}},{"id":"0d0b2948-0689-4765-8e6a-a80cef9aa4ac","block_type":"box","text":"(c) debt obligations of foreign banks and bank holding companies; (d) debt obligations of domestic banks and","page_number":74,"box":{"x":69,"y":763,"width":780,"height":11}},{"id":"bc0bb476-3246-4a5b-82e6-afdff8193255","block_type":"box","text":"corporations issued in foreign currencies; (e) debt obligations denominated in the Euro; and (f) foreign corporate debt","page_number":74,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"067ab0e0-f6ed-4652-922e-5f5e5e02015e","block_type":"box","text":"securities and commercial paper. Such securities may include loan par ticipations and assignments, conver tible","page_number":74,"box":{"x":69,"y":793,"width":794,"height":11}},{"id":"c87a9989-08e9-4e92-b9a8-b6f4b2bd2f90","block_type":"box","text":"securities and zero-coupon securities.","page_number":74,"box":{"x":69,"y":808,"width":268,"height":11}},{"id":"8c1ce224-b31d-4500-9c15-be9035565a31","block_type":"box","text":"Dividends or interest on, or proceeds from the sale of, foreign securities may be subject to foreign withholding","page_number":74,"box":{"x":102,"y":831,"width":785,"height":11}},{"id":"a28719c9-d504-42e3-98a2-66599cb09187","block_type":"box","text":"taxes.","page_number":74,"box":{"x":68,"y":847,"width":42,"height":8}},{"id":"fd386dfc-25ae-4ec3-a511-f56b4af33c27","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":74,"box":{"x":101,"y":869,"width":798,"height":11}},{"id":"c2834b6c-e307-47e4-969d-9b5d6d78c644","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":74,"box":{"x":68,"y":884,"width":815,"height":11}},{"id":"4c841fc8-030f-4224-b705-6ee5d7eb3954","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":74,"box":{"x":70,"y":899,"width":792,"height":11}},{"id":"33d0b81a-e384-4c41-b7d0-acc6bce364e5","block_type":"box","text":"II-28","page_number":74,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"8c1a4441-7bed-4050-aef3-1510669d7c30","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":74,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f8cbe509-1315-4df1-ab3c-04bf0a6c3cbd","block_type":"box","text":"underlying security (","page_number":75,"box":{"x":69,"y":45,"width":140,"height":11}},{"id":"6c506b34-e6df-402c-89f7-4f3f388a1df4","block_type":"box","text":"i.e.","page_number":75,"box":{"x":211,"y":45,"width":20,"height":9}},{"id":"60302dd7-a395-4751-b1f8-40e778767e0f","block_type":"box","text":", the Fund’s quote from the closed foreign market). The impact of a closed foreign market on a","page_number":75,"box":{"x":234,"y":45,"width":675,"height":11}},{"id":"2a8de12a-0b06-4037-be0b-2d27e698fc33","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":75,"box":{"x":70,"y":60,"width":809,"height":11}},{"id":"d2ce00a3-8e98-432a-a52a-bc008c2c2490","block_type":"box","text":"that closed foreign market or when the foreign market is closed for unscheduled reasons. These deviations may","page_number":75,"box":{"x":68,"y":75,"width":800,"height":11}},{"id":"80396bf2-841a-4f36-8872-2eefa37395f7","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":75,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"ba575b3d-ba98-4150-9093-18d09a25cff7","block_type":"box","text":"Foreign Market Risk.","page_number":75,"box":{"x":102,"y":113,"width":144,"height":11}},{"id":"7d18af03-6d3f-4acc-a489-c9abbd424453","block_type":"box","text":"Funds that may invest in foreign securities offer the potential for more diversification than a","page_number":75,"box":{"x":254,"y":113,"width":652,"height":11}},{"id":"8673927a-6df8-4d85-980c-4abb9c9aba0b","block_type":"box","text":"Fund that invests only in the United States because securities traded on foreign markets have often (though not","page_number":75,"box":{"x":70,"y":128,"width":797,"height":11}},{"id":"93f4de71-ee68-4a3a-b346-d17272184e13","block_type":"box","text":"always) per formed differently from securities traded in the United States. However, such investments often involve","page_number":75,"box":{"x":69,"y":143,"width":817,"height":11}},{"id":"af931c6c-f96b-4a10-8577-053142e0c890","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":75,"box":{"x":69,"y":158,"width":836,"height":11}},{"id":"9de41729-4ac5-49e8-8184-7281fd425e27","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":75,"box":{"x":70,"y":173,"width":835,"height":11}},{"id":"b97c625e-be04-4db6-baf6-4743813a2700","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":75,"box":{"x":69,"y":188,"width":810,"height":12}},{"id":"25141dae-38cc-4f15-abdf-a6f6af777b07","block_type":"box","text":"prices of foreign securities may fluctuate more than prices of securities traded in the United States. Investments in","page_number":75,"box":{"x":70,"y":203,"width":820,"height":12}},{"id":"59c34221-63c6-4df9-94ca-aa4e5bd835e8","block_type":"box","text":"foreign markets may also be adversely affected by governmental actions such as the imposition of punitive taxes or","page_number":75,"box":{"x":68,"y":218,"width":826,"height":12}},{"id":"dcc6c0ae-880b-4875-95f0-4d42ecc4eb19","block_type":"box","text":"tariffs. In addition, economic conditions, such as volatile currency exchange rates and interest rates, political events,","page_number":75,"box":{"x":68,"y":234,"width":836,"height":11}},{"id":"b083e6f1-843a-44c1-ad47-bd24997b83fc","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":75,"box":{"x":69,"y":249,"width":821,"height":11}},{"id":"6e07ef3f-c398-4a02-8772-2b6efbbe9ee6","block_type":"box","text":"U.S. Government with respect to cer tain countries, prohibiting or imposing substantial restrictions through capital","page_number":75,"box":{"x":70,"y":264,"width":807,"height":11}},{"id":"9b82efc5-bd11-4efb-82a6-7cddd8eb6eb2","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":75,"box":{"x":69,"y":279,"width":830,"height":11}},{"id":"80175a03-2209-4a96-bcdf-e49a567e58d9","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":75,"box":{"x":69,"y":294,"width":810,"height":11}},{"id":"0e15bcbf-fb92-4401-a6e6-f349e5a6e6b0","block_type":"box","text":"securities, derivatives or other assets and may also include retaliatory actions of one government against another","page_number":75,"box":{"x":69,"y":309,"width":813,"height":11}},{"id":"7b557e6f-248c-40d6-b9be-f50bf111a2f6","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":75,"box":{"x":68,"y":324,"width":828,"height":12}},{"id":"cd33b31b-f543-4701-bde8-6c6c7a605864","block_type":"box","text":"transfer, receive, deliver or otherwise obtain exposure to foreign securities and assets, including the ability to","page_number":75,"box":{"x":68,"y":339,"width":782,"height":12}},{"id":"57b1c8ce-0980-49da-83c3-5911f260de45","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":75,"box":{"x":68,"y":355,"width":796,"height":11}},{"id":"18692c70-020c-4bf4-ab0d-b8b6a9944e4e","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":75,"box":{"x":70,"y":370,"width":837,"height":11}},{"id":"38e4ab99-6dc4-4963-b526-b55ba28b06d8","block_type":"box","text":"potential foreign market risks include exchange controls, difficulties in pricing securities, defaults on foreign","page_number":75,"box":{"x":70,"y":385,"width":768,"height":11}},{"id":"c97dedfc-63dc-459a-acd7-5281399eb64b","block_type":"box","text":"government securities, difficulties in enforcing favorable legal judgments in foreign cour ts, and political and social","page_number":75,"box":{"x":68,"y":400,"width":813,"height":11}},{"id":"5ea24064-2e30-49dd-89af-289b3ebfe769","block_type":"box","text":"conditions, such as diplomatic relations, confiscatory taxation, expropriation, limitation on the removal of funds or","page_number":75,"box":{"x":69,"y":415,"width":814,"height":11}},{"id":"df0cbf07-86a6-4984-9c8b-5882f33c5ffa","block_type":"box","text":"assets, or imposition of (or change in) exchange control regulations. Legal remedies available to investors in cer tain","page_number":75,"box":{"x":69,"y":430,"width":828,"height":11}},{"id":"ee3d1564-1936-46f2-9b64-fb94cad0484c","block_type":"box","text":"foreign countries may be less extensive than those available to investors in the United States or other foreign","page_number":75,"box":{"x":68,"y":445,"width":782,"height":12}},{"id":"86d9a412-aa4b-4d72-9153-b170d44a79ab","block_type":"box","text":"countries. In addition, changes in government administrations or economic or monetary policies in the United States","page_number":75,"box":{"x":69,"y":460,"width":830,"height":12}},{"id":"ff901b17-fd58-4cc0-a6f5-166c6a215daf","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":75,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"47cab6f5-22c1-4bcd-a6d3-7719b65a4493","block_type":"box","text":"Fund’s operations.","page_number":75,"box":{"x":70,"y":491,"width":130,"height":11}},{"id":"e218982c-f840-4cde-b17b-361f78a1cfbf","block_type":"box","text":"Foreign Economy Risk.","page_number":75,"box":{"x":102,"y":514,"width":158,"height":11}},{"id":"e30edc21-0fa8-4524-b29d-3e179483c756","block_type":"box","text":"The economies of cer tain foreign markets often do not compare favorably with that of the","page_number":75,"box":{"x":267,"y":513,"width":636,"height":12}},{"id":"6de9e0de-35c1-4429-b514-3954ea075b88","block_type":"box","text":"United States with respect to such issues as growth of gross national product, reinvestment of capital, resources,","page_number":75,"box":{"x":70,"y":528,"width":812,"height":12}},{"id":"3cfc1896-57f5-4606-bf09-7c830ec57c04","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":75,"box":{"x":69,"y":543,"width":835,"height":12}},{"id":"aab87dcc-f458-4d0b-ae7e-9fccfa135123","block_type":"box","text":"and are more vulnerable to diplomatic developments, the imposition of economic sanctions against a par ticular","page_number":75,"box":{"x":69,"y":559,"width":795,"height":11}},{"id":"dc95c060-d7c8-4d5c-a358-79f569ec0565","block_type":"box","text":"country or countries, changes in international trading patterns, trade barriers, and other protectionist or retaliatory","page_number":75,"box":{"x":69,"y":574,"width":817,"height":11}},{"id":"d78a7e7c-07d7-480b-8a80-0c7990f82fca","block_type":"box","text":"measures.","page_number":75,"box":{"x":69,"y":591,"width":74,"height":7}},{"id":"720b8487-04f7-48a0-8603-9328617e16e9","block_type":"box","text":"Currency Risk and Exchange Risk.","page_number":75,"box":{"x":102,"y":612,"width":240,"height":11}},{"id":"06ec2b83-4473-49a9-823d-a236cfb5d3eb","block_type":"box","text":"Because foreign securities generally are denominated and pay dividends or","page_number":75,"box":{"x":349,"y":612,"width":534,"height":11}},{"id":"a80139ab-0474-4f7e-95f8-370b9a53022b","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":75,"box":{"x":70,"y":627,"width":838,"height":11}},{"id":"998e9366-4c49-4748-b19a-dc96e307dfeb","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":75,"box":{"x":69,"y":642,"width":833,"height":11}},{"id":"1470da44-df7b-42b6-9fc2-70f4d0b4ae03","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":75,"box":{"x":69,"y":657,"width":801,"height":11}},{"id":"ec5aa65b-e7fd-47d2-b5da-a5669daa4ad0","block_type":"box","text":"dollars. Conversely, when the U.S. dollar decreases in value against a foreign currency, a security denominated in","page_number":75,"box":{"x":69,"y":672,"width":808,"height":11}},{"id":"123cbc58-fe31-42bf-87cb-cacb67e25e8c","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":75,"box":{"x":68,"y":687,"width":816,"height":11}},{"id":"211be301-6154-4f10-954e-0de2fa5d5289","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":75,"box":{"x":69,"y":702,"width":814,"height":12}},{"id":"324ba6e6-80f6-4d73-8fda-35e56546a79c","block_type":"box","text":"those returns. Currency exchange rates can also be affected unpredictably by intervention by U.S. or foreign","page_number":75,"box":{"x":68,"y":717,"width":771,"height":12}},{"id":"7b081ed6-a3be-414a-a476-1052a887dc49","block_type":"box","text":"governments or central banks, or the failure to intervene, or buy currency controls or political developments in the","page_number":75,"box":{"x":68,"y":732,"width":813,"height":12}},{"id":"487c27f2-0dc1-4310-8f11-c4b5d17c0af1","block_type":"box","text":"United States or abroad.","page_number":75,"box":{"x":70,"y":748,"width":172,"height":9}},{"id":"2fcec05e-75b0-4629-8b52-21d082873fba","block_type":"box","text":"Governmental Supervision and Regulation/Accounting Standards.","page_number":75,"box":{"x":102,"y":770,"width":466,"height":12}},{"id":"22f009e5-11b7-4929-970d-91d301e3760c","block_type":"box","text":"Many foreign governments supervise and","page_number":75,"box":{"x":575,"y":770,"width":293,"height":12}},{"id":"d5e39a7e-ee13-4aa5-ab0c-da9316cd260e","block_type":"box","text":"regulate stock exchanges, brokers and the sale of securities less than does the United States. Some countries may","page_number":75,"box":{"x":69,"y":785,"width":828,"height":12}},{"id":"96338fbe-5499-4740-839a-578b9d0aba34","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":75,"box":{"x":69,"y":801,"width":826,"height":11}},{"id":"74297426-9a8d-4881-8013-2fe911fd0ec2","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":75,"box":{"x":69,"y":816,"width":778,"height":11}},{"id":"6e2bf77a-f781-4398-9222-bfc552b73af9","block_type":"box","text":"securities based on nonpublic information about that company. Accounting standards in other countries are not","page_number":75,"box":{"x":69,"y":831,"width":794,"height":11}},{"id":"04fc3b76-eaf3-48ba-8034-33e007e24838","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":75,"box":{"x":69,"y":846,"width":831,"height":11}},{"id":"f29be6a2-249d-472a-82e5-8b23473a5579","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":75,"box":{"x":69,"y":861,"width":840,"height":11}},{"id":"c66b08dc-ffe2-46b8-ba13-7068d27869c7","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":75,"box":{"x":69,"y":876,"width":760,"height":11}},{"id":"ccd182a2-2bbe-4b70-ac4f-e465db7c5ba8","block_type":"box","text":"restrictions, through penalties and otherwise, on foreign investments by U.S. investors such as the Fund. If such","page_number":75,"box":{"x":69,"y":891,"width":803,"height":12}},{"id":"92aabc0a-8638-458e-921f-33b72db2398b","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":75,"box":{"x":69,"y":906,"width":798,"height":12}},{"id":"8834ac1a-e859-40bc-b150-25bf0f1ec2a0","block_type":"box","text":"II-29","page_number":75,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"df64b7cf-bf74-4057-ae30-ff5fb04b60e0","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":75,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3f325ab9-33f5-43dd-8daa-711b55522322","block_type":"box","text":"assets in U.S. securities. Also, brokerage commissions and other costs of buying or selling securities often are","page_number":76,"box":{"x":69,"y":45,"width":793,"height":11}},{"id":"e43ea287-7c20-4ed7-a816-f4d710b314b1","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":76,"box":{"x":69,"y":60,"width":797,"height":11}},{"id":"649c93f7-da77-48c2-b99f-a0753bce517c","block_type":"box","text":"investments.","page_number":76,"box":{"x":70,"y":75,"width":89,"height":9}},{"id":"3d7dc94d-6b3e-4df3-a346-99df9909cef2","block_type":"box","text":"Cer tain Risks of Holding Fund Assets Outside the United States.","page_number":76,"box":{"x":102,"y":98,"width":458,"height":11}},{"id":"75d8ec93-a048-41f4-9b70-9c3a698c6523","block_type":"box","text":"A Fund generally holds its foreign securities and","page_number":76,"box":{"x":566,"y":98,"width":341,"height":11}},{"id":"6dd37063-11d2-4af5-8372-86d4f2f6930b","block_type":"box","text":"cash in foreign banks and securities depositories. Some foreign banks and securities depositories may be recently","page_number":76,"box":{"x":69,"y":113,"width":819,"height":11}},{"id":"fe603e55-3fa8-469d-9da2-c7ef65861fbf","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":76,"box":{"x":69,"y":128,"width":813,"height":11}},{"id":"7a81ff09-98c9-4275-b6c0-a85e34d75f75","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":76,"box":{"x":68,"y":143,"width":838,"height":11}},{"id":"d626e36a-7aed-4b1e-bad5-029a4060b360","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":76,"box":{"x":69,"y":158,"width":835,"height":11}},{"id":"a55c2c1d-aebe-4b99-bd98-16af009379fe","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":76,"box":{"x":68,"y":173,"width":777,"height":11}},{"id":"3c10b631-90dc-464a-b9ad-7a08692c697f","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":76,"box":{"x":69,"y":188,"width":831,"height":12}},{"id":"d68aef20-f3e0-4d33-a68d-2081669e2800","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":76,"box":{"x":70,"y":203,"width":828,"height":12}},{"id":"22cfc960-4bd6-4e9a-a2e1-3eab6a3085f2","block_type":"box","text":"States.","page_number":76,"box":{"x":69,"y":219,"width":49,"height":8}},{"id":"d6f78443-d8ab-4757-ac4e-c275d7cc187f","block_type":"box","text":"Publicly Available Information.","page_number":76,"box":{"x":102,"y":241,"width":210,"height":11}},{"id":"6ced4d73-6963-4a90-94b4-965dd2c19db5","block_type":"box","text":"In general, less information is publicly available with respect to foreign issuers","page_number":76,"box":{"x":319,"y":241,"width":558,"height":11}},{"id":"ed203513-f9a0-406b-aba3-bd1a64d58f4f","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":76,"box":{"x":68,"y":256,"width":779,"height":12}},{"id":"dc26b6b9-d652-49e9-b3bd-d4152d14ee89","block_type":"box","text":"accounting and financial repor ting requirements applicable to issuers in the United States. While the volume of","page_number":76,"box":{"x":69,"y":271,"width":793,"height":12}},{"id":"49d2d0d9-f22e-44be-aeb0-26f0479d06fd","block_type":"box","text":"transactions effected on foreign stock exchanges has increased in recent years, it remains appreciably below that of","page_number":76,"box":{"x":68,"y":286,"width":834,"height":12}},{"id":"ef82389a-f883-4e19-a16b-9ff596c36678","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":76,"box":{"x":68,"y":302,"width":841,"height":11}},{"id":"72888ab2-a3fa-4ca9-bcc6-d6df8751db05","block_type":"box","text":"be more volatile than, comparable investments in securities in U.S. companies. In addition, there is generally less","page_number":76,"box":{"x":69,"y":317,"width":813,"height":11}},{"id":"1753afd6-3f57-40d9-a748-0fa6b57c656d","block_type":"box","text":"government supervision and regulation of securities exchanges, brokers and issuers in foreign countries than in the","page_number":76,"box":{"x":68,"y":332,"width":827,"height":11}},{"id":"95946a62-83f0-42e9-a23e-888497337c06","block_type":"box","text":"United States.","page_number":76,"box":{"x":70,"y":347,"width":99,"height":9}},{"id":"25c5555e-1201-4c67-a73c-06892b5b8088","block_type":"box","text":"Settlement Risk.","page_number":76,"box":{"x":102,"y":370,"width":116,"height":9}},{"id":"6d22e5a6-6ad9-43af-8af5-5c54fc135400","block_type":"box","text":"Settlement and clearance procedures in cer tain foreign markets differ significantly from those","page_number":76,"box":{"x":225,"y":370,"width":669,"height":11}},{"id":"f18143dd-ed3a-42aa-a2ee-b6b099fba4e8","block_type":"box","text":"in the United States. Supervisory authorities may also be unable to apply standards which are comparable with those","page_number":76,"box":{"x":70,"y":385,"width":837,"height":11}},{"id":"4ebee471-65ff-41a3-847c-be577a8917a0","block_type":"box","text":"in the United States. Foreign settlement procedures and trade regulations also may involve cer tain risks (such as","page_number":76,"box":{"x":70,"y":400,"width":808,"height":11}},{"id":"7f0c7fb7-c93b-4119-817c-a642f0616534","block_type":"box","text":"delays in payment for or delivery of securities) not typically generated by the settlement of U.S. investments.","page_number":76,"box":{"x":69,"y":415,"width":772,"height":11}},{"id":"40671f76-0aad-404b-8648-07d25021c375","block_type":"box","text":"Communications between the United States and emerging market countries may be unreliable, increasing the","page_number":76,"box":{"x":102,"y":438,"width":781,"height":11}},{"id":"778e233d-8c80-4247-b875-fff08b96e1c7","block_type":"box","text":"risk of delayed settlements or losses of security cer tificates in markets that still rely on physical settlement.","page_number":76,"box":{"x":69,"y":453,"width":771,"height":11}},{"id":"101f1035-39ea-4dd6-b9d2-5b842c13ea69","block_type":"box","text":"Settlements in cer tain foreign countries at times have not kept pace with the number of securities transactions;","page_number":76,"box":{"x":69,"y":468,"width":797,"height":11}},{"id":"996df36f-685f-4300-9369-9edda3f3b080","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":76,"box":{"x":68,"y":483,"width":802,"height":11}},{"id":"705048bc-3381-4645-bcf0-e3f55ec4b6e2","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":76,"box":{"x":69,"y":498,"width":812,"height":11}},{"id":"b2817c1b-f8e8-497f-a914-ffb9ae4d3d6e","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":76,"box":{"x":69,"y":513,"width":821,"height":12}},{"id":"c5a5e79e-3780-40ab-beb2-0e9a434142c1","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":76,"box":{"x":69,"y":528,"width":816,"height":12}},{"id":"cd4518b6-c760-475c-83fe-9d621b9b696f","block_type":"box","text":"another par ty, the Fund could be liable to that par ty for any losses incurred.","page_number":76,"box":{"x":69,"y":543,"width":539,"height":12}},{"id":"d75bccf2-99ac-4012-a71c-81a3cae5499a","block_type":"box","text":"Because of uncer tainties in the operation of settlement systems in individual markets, competing claims may","page_number":76,"box":{"x":102,"y":566,"width":781,"height":11}},{"id":"1a289e3a-1b73-4a2f-8f2a-1cd62ed1dd28","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":76,"box":{"x":69,"y":581,"width":810,"height":11}},{"id":"dc64d76e-b840-4d9c-910e-02036da246fc","block_type":"box","text":"otherwise be limited or inadequate to meet the Fund’s claims in case of such event.","page_number":76,"box":{"x":69,"y":596,"width":601,"height":11}},{"id":"73aeca2d-4520-4617-bc16-b7636f4aea36","block_type":"box","text":"Sovereign Debt.","page_number":76,"box":{"x":102,"y":619,"width":111,"height":11}},{"id":"da764d95-8bdd-4cce-b9fc-cdcba5bbb66b","block_type":"box","text":"Investment in sovereign debt can involve a high degree of risk. The governmental entity that","page_number":76,"box":{"x":221,"y":619,"width":653,"height":11}},{"id":"d3c826b9-1098-4974-ad73-2c0688898852","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":76,"box":{"x":69,"y":634,"width":837,"height":12}},{"id":"c313c640-4a61-43b3-b4df-d95d47777ea6","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":76,"box":{"x":69,"y":649,"width":826,"height":12}},{"id":"1777d5d7-9415-4eef-af36-02937ceca44b","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":76,"box":{"x":69,"y":664,"width":798,"height":12}},{"id":"a666080d-ff8c-4b6b-96fb-a672cc4743eb","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":76,"box":{"x":69,"y":680,"width":809,"height":11}},{"id":"164e5618-ef48-4c24-b0b7-c5b57edc783c","block_type":"box","text":"service burden to the economy as a whole, the governmental entity’s policy towards the International Monetary Fund","page_number":76,"box":{"x":69,"y":695,"width":832,"height":11}},{"id":"d2b5c1f3-6b97-478b-95cc-d5cab90ecce7","block_type":"box","text":"and the political constraints to which a governmental entity may be subject. Governmental entities may also be","page_number":76,"box":{"x":69,"y":710,"width":790,"height":11}},{"id":"4cd03bd4-26ba-4b4d-9917-c3143485fe5b","block_type":"box","text":"dependent on expected disbursements from foreign governments, multilateral agencies and others abroad to reduce","page_number":76,"box":{"x":69,"y":725,"width":831,"height":11}},{"id":"fb2cb8ae-b8d5-4ce4-887c-a9c31f798aa7","block_type":"box","text":"principal and interest arrearages on their debt. The commitment on the par t of these governments, agencies and","page_number":76,"box":{"x":70,"y":740,"width":805,"height":11}},{"id":"62bb1273-9420-432d-9bc4-ae57c3f80ff2","block_type":"box","text":"others to make such disbursements may be conditioned on the implementation of economic reforms and/or","page_number":76,"box":{"x":69,"y":755,"width":772,"height":11}},{"id":"49b3dd9e-bf08-4d9e-a432-adaa6a3ec2c6","block_type":"box","text":"economic per formance and the timely service of such debtor’s obligations. Failure to implement such reforms,","page_number":76,"box":{"x":69,"y":770,"width":789,"height":12}},{"id":"7fbc730b-60e9-4db4-8a0f-bff7d9aef4cc","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":76,"box":{"x":69,"y":785,"width":839,"height":12}},{"id":"115042ba-9472-4e2a-a570-746c04a68357","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":76,"box":{"x":69,"y":801,"width":810,"height":11}},{"id":"b96a6443-d4da-4b1f-88e3-9c7ea7dd90f4","block_type":"box","text":"ability or willingness to timely service its debts. Consequently, governmental entities may default on their sovereign","page_number":76,"box":{"x":69,"y":816,"width":821,"height":11}},{"id":"a4a0cc8d-bf8c-4dc3-9636-799be573e324","block_type":"box","text":"debt.","page_number":76,"box":{"x":69,"y":831,"width":34,"height":9}},{"id":"d6227daf-5cf6-4183-b9ae-f07e7154e087","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":76,"box":{"x":102,"y":853,"width":807,"height":12}},{"id":"7c805bf0-9c5c-4122-a882-4fc65eeb2d80","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":76,"box":{"x":70,"y":869,"width":814,"height":11}},{"id":"5a2ff628-ec4b-416d-abc5-0ee60ac9a8bc","block_type":"box","text":"legal remedies for collecting on such debt.","page_number":76,"box":{"x":70,"y":884,"width":300,"height":11}},{"id":"8970960c-f4e2-4247-b387-32d7167b30d7","block_type":"box","text":"II-30","page_number":76,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6317f6fa-1380-42b2-a15d-30611a6fb188","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":76,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b9b5a13e-da81-4b62-bc18-d21c595df1e3","block_type":"box","text":"Withholding Tax Reclaims Risk","page_number":77,"box":{"x":103,"y":45,"width":215,"height":11}},{"id":"5db52c54-bd48-4053-b0ab-49d743658985","block_type":"box","text":". A Fund may file claims to recover foreign withholding taxes on dividend and","page_number":77,"box":{"x":318,"y":45,"width":542,"height":11}},{"id":"8a11406b-51f2-4fcf-bb46-549f37f6a18a","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":77,"box":{"x":70,"y":60,"width":813,"height":11}},{"id":"0b9ed6b4-ae5e-45c4-997c-0c3baa0309b9","block_type":"box","text":"securities where such withholding tax reclaim is possible. Whether or when a Fund will receive a withholding tax","page_number":77,"box":{"x":69,"y":75,"width":795,"height":11}},{"id":"754d6f8a-54d4-4f6b-97ef-3916bc248d41","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":77,"box":{"x":69,"y":90,"width":799,"height":11}},{"id":"3aecfb81-8447-4a1d-8aa7-033d8a6ce145","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":77,"box":{"x":68,"y":105,"width":838,"height":11}},{"id":"914a47d9-13b5-4cc0-abd3-0300fd5517f4","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":77,"box":{"x":68,"y":120,"width":807,"height":12}},{"id":"af8d6252-a031-4480-916a-b3023e0d152a","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":77,"box":{"x":69,"y":135,"width":814,"height":12}},{"id":"e08e3fe8-1d43-45eb-82de-d8985536d3a5","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":77,"box":{"x":69,"y":150,"width":831,"height":12}},{"id":"067cb51b-1cd3-49d8-bfaf-6c362914fbc3","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":77,"box":{"x":69,"y":166,"width":819,"height":11}},{"id":"0f36a596-34b2-4f1b-9d59-05e3acfd0617","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":77,"box":{"x":68,"y":181,"width":833,"height":11}},{"id":"73cbfb94-5f81-48bf-9eab-568cb0e14472","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":77,"box":{"x":69,"y":196,"width":814,"height":11}},{"id":"776cbff8-553c-4100-89e1-22d8d2719633","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":77,"box":{"x":68,"y":211,"width":835,"height":11}},{"id":"f2ed5534-8a4c-4789-ba9f-63c22abc8e70","block_type":"box","text":"in the Fund’s net asset value.","page_number":77,"box":{"x":70,"y":226,"width":209,"height":9}},{"id":"4125e953-a631-48fe-befe-40f43906cdd6","block_type":"box","text":"U.S. Economic Trading Par tners Risk.","page_number":77,"box":{"x":103,"y":249,"width":263,"height":11}},{"id":"3683be0b-f600-4154-a95d-4f1c32974a0a","block_type":"box","text":"The United States is a significant, and in some cases the most significant,","page_number":77,"box":{"x":372,"y":249,"width":532,"height":11}},{"id":"ee2e71b6-44cb-4fec-8eb4-fb01f6ecd440","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":77,"box":{"x":68,"y":264,"width":773,"height":11}},{"id":"5650c7bf-846e-49ec-a72b-66831b8fd962","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":77,"box":{"x":69,"y":279,"width":839,"height":11}},{"id":"d1723566-3805-42d5-bced-ff204be576c6","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":77,"box":{"x":69,"y":294,"width":812,"height":11}},{"id":"887cc1e7-98ec-42da-9001-d5421891d192","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":77,"box":{"x":69,"y":309,"width":803,"height":11}},{"id":"a91143d9-e49c-47c9-a5aa-074945fe8bd8","block_type":"box","text":"result, securities to which the Fund has exposure. Circumstances could arise that could prevent the timely payment","page_number":77,"box":{"x":69,"y":324,"width":824,"height":11}},{"id":"353ec0fb-8794-4a04-b417-f71f904f6e04","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":77,"box":{"x":69,"y":339,"width":819,"height":12}},{"id":"746c0c3f-27ab-4bf5-a2ae-12d524a4f4be","block_type":"box","text":"would result in substantial negative consequences for the U.S. economy and the global financial system.","page_number":77,"box":{"x":68,"y":355,"width":746,"height":11}},{"id":"f05625dc-c83e-4782-852a-eb96f7d01168","block_type":"box","text":"There are strained relations between the United States and a number of foreign countries, including traditional","page_number":77,"box":{"x":101,"y":377,"width":787,"height":12}},{"id":"3c068fc9-f12b-44bd-b046-bcd51ee3372b","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":77,"box":{"x":69,"y":392,"width":827,"height":11}},{"id":"ac84e2cb-574c-40d1-b112-9def90ef4270","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":77,"box":{"x":70,"y":407,"width":817,"height":12}},{"id":"48b32725-107c-4202-82fb-2bfefa8ad144","block_type":"box","text":"United States for trade. The United States has also experienced increased internal unrest and discord. If these","page_number":77,"box":{"x":70,"y":423,"width":791,"height":11}},{"id":"03a9d523-4f9d-4213-b2e6-b74fb7d1551a","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":77,"box":{"x":68,"y":438,"width":803,"height":11}},{"id":"3bb8a372-e91c-4a46-be30-b6a54e8453b1","block_type":"box","text":"Fund may invest.","page_number":77,"box":{"x":70,"y":453,"width":117,"height":11}},{"id":"35e46e5f-ddba-4143-b66c-7e7ec0929453","block_type":"box","text":"Funding Agreements.","page_number":77,"box":{"x":102,"y":476,"width":154,"height":11}},{"id":"588f52b0-4362-42c1-b662-aab174b1fb6b","block_type":"box","text":"Cer tain Funds may invest in Guaranteed Investment Contracts and similar funding","page_number":77,"box":{"x":262,"y":475,"width":584,"height":12}},{"id":"7300352a-bb91-481c-97f0-b4b0a1730216","block_type":"box","text":"agreements. In connection with these investments, a Fund makes cash contributions to a deposit fund of an","page_number":77,"box":{"x":69,"y":491,"width":773,"height":11}},{"id":"2c7f5d28-968a-4c30-94a9-d3a7dc1523e7","block_type":"box","text":"insurance company’s general account. The insurance company then credits to the Fund on a monthly basis","page_number":77,"box":{"x":70,"y":506,"width":761,"height":11}},{"id":"31d7147a-2e26-40f3-b09c-d51f6395828c","block_type":"box","text":"guaranteed interest, which is based on an index. The funding agreements provide that this guaranteed interest will","page_number":77,"box":{"x":68,"y":521,"width":817,"height":11}},{"id":"64aff1e9-fe3b-4f05-aa6e-b004f42be90e","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":77,"box":{"x":69,"y":536,"width":794,"height":11}},{"id":"20f66e48-7fe9-489f-955a-2a1ad090ccf9","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":77,"box":{"x":68,"y":551,"width":839,"height":11}},{"id":"ce430f2e-940b-4e8d-83a8-32d39514e157","block_type":"box","text":"Generally, funding agreements are not assignable or transferable without the permission of the issuing insurance","page_number":77,"box":{"x":69,"y":566,"width":806,"height":11}},{"id":"a7daeae1-026f-4634-9b92-6aacdadd35b0","block_type":"box","text":"companies, and an active secondary market in some funding agreements does not currently exist.","page_number":77,"box":{"x":69,"y":581,"width":700,"height":12}},{"id":"ef20a84b-6345-4faf-86d5-3236b05f7a94","block_type":"box","text":"Guarantees.","page_number":77,"box":{"x":102,"y":604,"width":87,"height":9}},{"id":"dc7ba0b6-3948-477e-9125-edef4f14cfaf","block_type":"box","text":"A Fund may purchase securities which contain guarantees issued by an entity separate from the","page_number":77,"box":{"x":194,"y":604,"width":685,"height":11}},{"id":"9624baf8-d1df-4d35-b695-14e266f876be","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":77,"box":{"x":70,"y":619,"width":797,"height":11}},{"id":"b5f733c0-3ce0-4be4-9d4d-b7e798cc0371","block_type":"box","text":"payment obligations under a security if the issuer is unable to do so.","page_number":77,"box":{"x":70,"y":634,"width":488,"height":12}},{"id":"526b5225-7a7f-400a-ad75-ab11cb62c5ad","block_type":"box","text":"Illiquid Investments.","page_number":77,"box":{"x":102,"y":657,"width":146,"height":11}},{"id":"fe9a69b8-7610-441d-ab4c-25057d98bfbd","block_type":"box","text":"Each Fund may not acquire any illiquid investment if, immediately after the acquisition, a","page_number":77,"box":{"x":255,"y":657,"width":630,"height":11}},{"id":"5c49ed5a-1c6a-4ec5-81b1-e597c013f39c","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":77,"box":{"x":70,"y":672,"width":787,"height":11}},{"id":"fb783c5b-9b20-4811-8e10-5a11676046fa","block_type":"box","text":"investment that a Fund reasonably expects cannot be sold or disposed of in current market conditions in seven","page_number":77,"box":{"x":70,"y":687,"width":792,"height":11}},{"id":"35bcf73d-b6a3-47d5-95b4-8f3c4ecc6e8e","block_type":"box","text":"calendar days or less without the sale or disposition significantly changing the market value of the investment. Liquid","page_number":77,"box":{"x":69,"y":702,"width":834,"height":12}},{"id":"8b0e1bf5-2f69-45a7-9c0b-445d880b1194","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":77,"box":{"x":70,"y":717,"width":838,"height":12}},{"id":"ae05b5f0-ae2a-4cd0-bc20-f18534b36227","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":77,"box":{"x":69,"y":732,"width":824,"height":12}},{"id":"bbcb0451-b15a-46b4-aa54-6b09cdeefdb8","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":77,"box":{"x":69,"y":748,"width":838,"height":11}},{"id":"4c38b339-fd25-482e-b0df-f5aa97cf4480","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":77,"box":{"x":70,"y":763,"width":816,"height":11}},{"id":"8701fee4-1878-4c2a-8b0a-849c475abe15","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":77,"box":{"x":68,"y":778,"width":832,"height":11}},{"id":"0d4edde7-bd8a-468b-a6e9-cab8b691c6d3","block_type":"box","text":"Fund is limited in its ability to dispose of illiquid investments during periods when shareholders are redeeming or","page_number":77,"box":{"x":70,"y":793,"width":803,"height":11}},{"id":"c4f56ca6-1353-4c49-a5c5-369e189ee469","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":77,"box":{"x":69,"y":808,"width":817,"height":11}},{"id":"775979c0-4324-4042-a841-e98f1bd13552","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":77,"box":{"x":69,"y":823,"width":781,"height":12}},{"id":"b4da29c4-8223-419b-9499-a5540e997ee3","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":77,"box":{"x":70,"y":838,"width":822,"height":12}},{"id":"7be5531c-8c7a-44b9-8fcc-4281894327b1","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":77,"box":{"x":69,"y":853,"width":822,"height":12}},{"id":"dc23473f-89c9-4de2-bb32-08e96c14faa3","block_type":"box","text":"comparable liquid investments. Investment of a Fund’s assets in illiquid investments may restrict the ability of the","page_number":77,"box":{"x":69,"y":869,"width":813,"height":11}},{"id":"f0a92bcd-d437-4b70-a617-2ee302812307","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":77,"box":{"x":70,"y":884,"width":814,"height":11}},{"id":"49162e41-92e8-4695-99b5-cfb0f9f1c6f9","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":77,"box":{"x":69,"y":899,"width":833,"height":11}},{"id":"4e473968-cc57-4ea8-ada3-501c25790281","block_type":"box","text":"II-31","page_number":77,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"349f4651-c6a0-4f4f-b7b5-eb9c288183f1","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":77,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"79bbe929-0914-4daa-bb22-973a3d714b74","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":78,"box":{"x":69,"y":45,"width":801,"height":11}},{"id":"744178b4-0af6-4631-ad2c-a98abaa28751","block_type":"box","text":"shor t-term cash requirements or incurring capital losses on the sale of illiquid investments.","page_number":78,"box":{"x":69,"y":60,"width":651,"height":11}},{"id":"b16d4176-b478-4482-9449-863421bc556b","block_type":"box","text":"Index Funds.","page_number":78,"box":{"x":102,"y":83,"width":91,"height":8}},{"id":"7185efe3-b78e-423e-ad00-1431f96bcfb4","block_type":"box","text":"Cash Flows; Expenses.","page_number":78,"box":{"x":102,"y":105,"width":162,"height":11}},{"id":"c2512c61-aa6f-40e3-9980-684d84de8065","block_type":"box","text":"The ability of each Fund to satisfy its investment objective depends to some extent on","page_number":78,"box":{"x":270,"y":105,"width":613,"height":11}},{"id":"f2b90257-d6a8-45d2-9285-57bfe3267108","block_type":"box","text":"the Manager’s ability to manage cash flow (primarily from purchases and redemptions and distributions from the","page_number":78,"box":{"x":68,"y":120,"width":803,"height":12}},{"id":"cecff97b-a6e4-4e9e-854f-19faf92dc530","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":78,"box":{"x":70,"y":135,"width":810,"height":12}},{"id":"a119fc5b-11b6-44a3-872b-03336e943ccc","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":78,"box":{"x":68,"y":150,"width":823,"height":12}},{"id":"900e3eab-c50e-49b2-869f-22185a3fd9c6","block_type":"box","text":"the investment per formance of each index is a hypothetical number which does not take into account brokerage","page_number":78,"box":{"x":68,"y":166,"width":799,"height":11}},{"id":"7a4b4bc2-4382-437b-a0fd-eb5ede3881db","block_type":"box","text":"commissions and other transaction costs, custody and other costs of investing, and any incremental operating costs","page_number":78,"box":{"x":69,"y":181,"width":831,"height":11}},{"id":"01eb5398-3c55-4c16-ab7d-092ec861d2c1","block_type":"box","text":"(","page_number":78,"box":{"x":69,"y":196,"width":3,"height":11}},{"id":"002ebbae-fcba-452c-a260-1012574acd54","block_type":"box","text":"e.g.","page_number":78,"box":{"x":74,"y":197,"width":25,"height":10}},{"id":"afcea415-a8ad-4bd1-bd6f-832bb905de41","block_type":"box","text":", transfer agency and accounting costs) that will be borne by the Funds. Finally, since each Fund seeks to","page_number":78,"box":{"x":101,"y":196,"width":749,"height":11}},{"id":"9eae77c3-1c80-46ff-b46d-81682c1ec61a","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":78,"box":{"x":69,"y":211,"width":774,"height":11}},{"id":"be4eb618-dea2-42a6-a4fa-77f507de51ab","block_type":"box","text":"par ticular security as an investment.","page_number":78,"box":{"x":70,"y":226,"width":258,"height":11}},{"id":"ab72e5d2-6683-43c4-94d4-35462ad20ca4","block_type":"box","text":"Tracking Error Risk","page_number":78,"box":{"x":103,"y":249,"width":132,"height":11}},{"id":"d3fe7da5-9484-48d6-9a19-56a91a590b27","block_type":"box","text":". A Fund may be subject to tracking error, which is the divergence of the Fund’s per formance","page_number":78,"box":{"x":236,"y":249,"width":658,"height":11}},{"id":"424aecbb-1e7a-4b43-9764-89e079a2431a","block_type":"box","text":"from that of the Underlying Index. Tracking error may occur because of differences between the securities and other","page_number":78,"box":{"x":68,"y":264,"width":827,"height":11}},{"id":"ced547ff-bbfa-4f98-87e0-d51eae5448c9","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":78,"box":{"x":70,"y":279,"width":830,"height":11}},{"id":"e5ee5bfd-b2cb-480d-aa68-90fb4d336573","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":78,"box":{"x":69,"y":294,"width":827,"height":11}},{"id":"23317b7f-4322-4898-8db5-db18b821d4e1","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":78,"box":{"x":68,"y":309,"width":797,"height":11}},{"id":"374c2343-a79f-436c-9f30-9bb942e6893a","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":78,"box":{"x":70,"y":324,"width":787,"height":12}},{"id":"d8b26e22-e9f5-455e-b83b-ea968cb35148","block_type":"box","text":"distributions, interest, the requirements to maintain pass-through tax treatment, por tfolio transactions carried out to","page_number":78,"box":{"x":69,"y":339,"width":830,"height":12}},{"id":"efd2e748-cb37-4aa2-b17b-a2d8695cb8cd","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":78,"box":{"x":69,"y":355,"width":838,"height":11}},{"id":"c24bf0a8-09db-4444-b052-673d679e30cc","block_type":"box","text":"complying with various new or existing regulatory requirements. These risks may be heightened during times of","page_number":78,"box":{"x":69,"y":370,"width":791,"height":11}},{"id":"d3a5ee2c-6c58-48ae-ace1-7a8f716510bd","block_type":"box","text":"increased market volatility or other unusual market conditions. In addition, tracking error may result because the","page_number":78,"box":{"x":70,"y":385,"width":801,"height":11}},{"id":"216a636f-e7dd-416d-919b-ffa46f526763","block_type":"box","text":"Fund incurs fees and expenses, while the Underlying Index does not.","page_number":78,"box":{"x":70,"y":400,"width":487,"height":11}},{"id":"aa14d83f-04fa-4a98-a22f-14fd454af15c","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":78,"box":{"x":101,"y":423,"width":799,"height":11}},{"id":"9c502759-a515-4f92-96d3-0d1822a418f4","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":78,"box":{"x":69,"y":438,"width":803,"height":11}},{"id":"2f950277-6964-40d5-9b13-db86ffd40258","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":78,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"706b98b2-76a7-42ed-b70f-30d13b205e99","block_type":"box","text":"the issuer, unusual or significant shor t interest or lending activity, negative sentiment, suspended trading or incorrect","page_number":78,"box":{"x":68,"y":468,"width":838,"height":11}},{"id":"f8af1513-fa65-496d-9d0a-09e01639adf4","block_type":"box","text":"free-float calculations, which could be indicators of possible irregularities, miscalculations or even fraud). If it","page_number":78,"box":{"x":68,"y":483,"width":778,"height":11}},{"id":"e87ef70f-ed1b-4cc0-a657-490bf8c0c8a0","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":78,"box":{"x":70,"y":498,"width":816,"height":11}},{"id":"4840fd2a-81e1-4f46-94ef-a7a66d85edd9","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":78,"box":{"x":70,"y":513,"width":836,"height":11}},{"id":"5fccb0b7-88fb-4d95-8c1e-8a7c530dad55","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":80,"box":{"x":70,"y":60,"width":802,"height":11}},{"id":"3e811c97-1872-47ad-84ce-6969b7cb0922","block_type":"box","text":"other product or person into consideration in determining, composing or calculating a Bloomberg Index.","page_number":80,"box":{"x":69,"y":75,"width":735,"height":11}},{"id":"c69d8fa6-3407-46a3-ba9d-67d88791cd53","block_type":"box","text":"ICE BofA Indexes.","page_number":80,"box":{"x":102,"y":98,"width":124,"height":9}},{"id":"4b1edee2-538c-438d-8426-c1e652d5ed19","block_type":"box","text":"No Fund is promoted, sponsored or endorsed by, nor in any way affiliated with Intercontinental","page_number":80,"box":{"x":233,"y":98,"width":670,"height":11}},{"id":"fae1b09e-5612-4ce0-8d0b-c4a06c5b539a","block_type":"box","text":"Exchange, Inc. and its affiliates (collectively, “ICE”) or Bank of America or its affiliates (collectively, “BofA”). BofA is","page_number":80,"box":{"x":70,"y":113,"width":819,"height":11}},{"id":"2cbcfd07-f760-4e94-893c-4d5a0e667b2a","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":80,"box":{"x":69,"y":128,"width":820,"height":11}},{"id":"9d6b8c4b-37e1-4337-bcc1-ddea7ede505a","block_type":"box","text":"under license. 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ICE has no obligation to take the needs of any par ticular Fund or its par ticipants or any other product or","page_number":80,"box":{"x":70,"y":211,"width":825,"height":11}},{"id":"68d0d959-1a0b-4759-812b-5c5361622728","block_type":"box","text":"person into consideration in determining, composing or calculating an ICE BofA Index.","page_number":80,"box":{"x":70,"y":226,"width":608,"height":11}},{"id":"343cf532-df4d-43c4-8d3c-bcc7b69d11b0","block_type":"box","text":"Indexed and Inverse Securities.","page_number":80,"box":{"x":102,"y":249,"width":228,"height":9}},{"id":"1ab32e12-771e-4a03-bd38-dc870fee1719","block_type":"box","text":"A Fund may invest in securities that provide a potential return based on a","page_number":80,"box":{"x":336,"y":249,"width":523,"height":11}},{"id":"f32e886d-4587-4c9a-89db-a27b722c2d7d","block_type":"box","text":"par ticular index of value or interest rates. 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To the extent a Fund invests in these types of securities, the Fund’s return on such securities will","page_number":80,"box":{"x":68,"y":294,"width":830,"height":11}},{"id":"8a298a16-4236-40d6-bcff-b14240a1313a","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":80,"box":{"x":69,"y":309,"width":827,"height":11}},{"id":"0498507a-d4fb-487f-8a48-ede92a75bfc1","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":80,"box":{"x":68,"y":324,"width":812,"height":11}},{"id":"870d5baf-034f-4612-a5c7-67e63686994a","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":80,"box":{"x":69,"y":339,"width":837,"height":12}},{"id":"3ca81fc9-960e-4df6-add8-a1df28f07343","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":80,"box":{"x":69,"y":355,"width":781,"height":11}},{"id":"18d7e680-0aaf-4a4a-94dc-f0cbcdc295a1","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":80,"box":{"x":70,"y":370,"width":838,"height":11}},{"id":"ab7b0c7b-258c-49d5-a8c0-96bd64d6834d","block_type":"box","text":"Fund may purchase synthetically-created inverse floating rate bonds evidenced by custodial or trust receipts.","page_number":80,"box":{"x":70,"y":385,"width":771,"height":11}},{"id":"0ad79697-64e5-480b-bb74-3772ad1bd00b","block_type":"box","text":"Generally, income on inverse floating rate bonds will decrease when interest rates increase, and will increase when","page_number":80,"box":{"x":69,"y":400,"width":820,"height":11}},{"id":"6f582371-634b-40be-8170-8cf39073acc3","block_type":"box","text":"interest rates decrease. Such securities have the effect of providing a degree of investment leverage, since they may","page_number":80,"box":{"x":70,"y":415,"width":835,"height":11}},{"id":"44cb48bd-6fa5-49ac-8ba5-ebe14c95809f","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":80,"box":{"x":70,"y":430,"width":817,"height":11}},{"id":"0cfea66b-3964-4d5e-9f4e-6b46ee06dc8c","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":80,"box":{"x":69,"y":445,"width":829,"height":12}},{"id":"2b54e86e-e6be-48da-85e7-0c5de5163094","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":80,"box":{"x":69,"y":460,"width":804,"height":12}},{"id":"1b2880eb-022e-43a6-8b70-5a18d1e88fc5","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":80,"box":{"x":69,"y":475,"width":838,"height":12}},{"id":"3155faee-065d-4667-93b6-432bc5b6ba56","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":80,"box":{"x":69,"y":491,"width":819,"height":11}},{"id":"e24d30f4-ff2c-4729-94d3-edb280939593","block_type":"box","text":"obligations may be illiquid. The Manager believes that indexed and inverse floating obligations represent flexible","page_number":80,"box":{"x":69,"y":506,"width":798,"height":11}},{"id":"b0724cd2-17cf-412e-99ad-639705d6eab1","block_type":"box","text":"por tfolio management instruments for a Fund that allow the Fund to seek potential investment rewards, hedge other","page_number":80,"box":{"x":70,"y":521,"width":829,"height":11}},{"id":"73f691d7-3383-40dd-818f-1f0b2a442416","block_type":"box","text":"por tfolio positions or vary the degree of investment leverage relatively efficiently under different market conditions. A","page_number":80,"box":{"x":70,"y":536,"width":834,"height":11}},{"id":"d4b903a4-feb6-4584-845a-a795feb6c61c","block_type":"box","text":"Fund may invest in indexed and inverse securities for hedging purposes or to seek to increase returns. 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Fur thermore, where such a security","page_number":80,"box":{"x":69,"y":566,"width":781,"height":11}},{"id":"3b4ace73-d9f8-4492-8620-4abfc26a6795","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":80,"box":{"x":70,"y":581,"width":812,"height":12}},{"id":"c1bccc3c-6f7c-4ecb-b939-0227f3946eb4","block_type":"box","text":"may be required to pay substantial additional margin to maintain the position.","page_number":80,"box":{"x":69,"y":597,"width":553,"height":11}},{"id":"ad73a3ec-1668-4266-8bb2-4d2ce3d264e9","block_type":"box","text":"The Funds may invest up to 10% of their total assets in leveraged inverse floating rate debt instruments","page_number":80,"box":{"x":101,"y":619,"width":741,"height":11}},{"id":"adaff74d-ec99-4baa-85fe-955e1f00e82c","block_type":"box","text":"(“inverse floaters”). Inverse floaters are securities the potential of which is inversely related to changes in interest","page_number":80,"box":{"x":69,"y":634,"width":815,"height":12}},{"id":"cc693234-902c-4fac-a91b-a3c53d339a35","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":80,"box":{"x":69,"y":649,"width":817,"height":12}},{"id":"c902fc7b-7f41-433d-9488-48ee409d28a6","block_type":"box","text":"when shor t-term rates decrease. Municipal tender option bonds, both taxable and tax-exempt, which may include","page_number":80,"box":{"x":68,"y":665,"width":805,"height":11}},{"id":"9083256b-705f-4e28-b8c9-d97698967a12","block_type":"box","text":"inverse floating rate debt instruments, (including residual interests thereon) are excluded from this 10% limitation.","page_number":80,"box":{"x":70,"y":680,"width":813,"height":11}},{"id":"22df4b6c-b8a2-42ac-87d0-2ebbf4f65fab","block_type":"box","text":"Inflation Risk.","page_number":80,"box":{"x":102,"y":702,"width":100,"height":9}},{"id":"18b27c00-288a-4ce5-9cb3-6f9672009b7e","block_type":"box","text":"Like all funds, the Funds are subject to inflation risk. Inflation risk is the risk that the present","page_number":80,"box":{"x":209,"y":702,"width":663,"height":11}},{"id":"34aef9ad-fe91-4508-b437-0c401803ab3a","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":80,"box":{"x":68,"y":717,"width":820,"height":12}},{"id":"400a37f3-b536-451b-bac5-17a45740078c","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":80,"box":{"x":70,"y":732,"width":792,"height":11}},{"id":"a5e7e385-a053-4905-912a-3adb85f2544a","block_type":"box","text":"Inflation rates may change frequently and significantly due to a number of potential factors, including, among others,","page_number":80,"box":{"x":70,"y":748,"width":829,"height":11}},{"id":"e2110eef-d3dc-4330-940a-a6fc2912dcee","block_type":"box","text":"unexpected economic shifts or changes in fiscal or monetary policies.","page_number":80,"box":{"x":69,"y":763,"width":497,"height":11}},{"id":"ab9e93a3-d928-456f-8119-814e33d125e3","block_type":"box","text":"Initial Public Offering (“IPO”) Risk.","page_number":80,"box":{"x":102,"y":785,"width":253,"height":12}},{"id":"374f3763-1d4c-44c6-a367-676bef19fa39","block_type":"box","text":"The volume of IPOs and the levels at which the newly issued stocks trade in","page_number":80,"box":{"x":361,"y":785,"width":540,"height":12}},{"id":"b8685927-02cf-40ad-a795-10401115d325","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":80,"box":{"x":68,"y":801,"width":836,"height":11}},{"id":"522f815c-5901-4630-a717-1c2cfdf7d838","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":80,"box":{"x":69,"y":816,"width":815,"height":11}},{"id":"43556aa3-852a-45c6-b8a9-8476f6be059b","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":80,"box":{"x":69,"y":831,"width":795,"height":11}},{"id":"68b19c8d-5578-409a-b189-d0faecd18cea","block_type":"box","text":"securities involved in IPOs are often subject to greater and more unpredictable price changes than more established","page_number":80,"box":{"x":69,"y":846,"width":829,"height":11}},{"id":"b7c15956-f976-4e88-a05f-2f0cb340c3b8","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":80,"box":{"x":69,"y":861,"width":814,"height":11}},{"id":"db0f6d0b-f317-43ab-8669-5e741ba1e5c5","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":80,"box":{"x":70,"y":876,"width":813,"height":11}},{"id":"c9450899-10d9-46c3-abf1-9968031dbd76","block_type":"box","text":"commissions and transaction costs, and potentially result in taxable gains that the Fund will subsequently distribute","page_number":80,"box":{"x":69,"y":891,"width":828,"height":12}},{"id":"19e45283-5860-4932-a87e-6a6289d6e287","block_type":"box","text":"to shareholders. There is no assurance that any Fund will have access to profitable IPOs and therefore investors","page_number":80,"box":{"x":68,"y":906,"width":802,"height":12}},{"id":"e526f7a3-6be5-4d75-b99a-dcc9a551914d","block_type":"box","text":"II-34","page_number":80,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"77c7db47-5396-48da-b877-a9df16730f2c","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":80,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b45e932d-eb8f-41e6-abda-05c036a3e900","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":81,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"6b4873a0-0015-460c-a081-116676aa0bcf","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":81,"box":{"x":70,"y":60,"width":832,"height":11}},{"id":"8d818663-f410-4091-b49e-77a2d49bd392","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":81,"box":{"x":70,"y":75,"width":777,"height":11}},{"id":"ce5e037a-c259-4cab-912d-f23f1000ca45","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":81,"box":{"x":69,"y":90,"width":810,"height":11}},{"id":"8ff2a70a-d9aa-425e-ad28-c7313184b8b8","block_type":"box","text":"market capitalizations. Securities issued in IPOs have no trading history, and information about the companies may","page_number":81,"box":{"x":69,"y":105,"width":823,"height":11}},{"id":"7df657ad-8e70-4fdf-8716-dfca54497f82","block_type":"box","text":"be available for very limited periods.","page_number":81,"box":{"x":69,"y":120,"width":257,"height":11}},{"id":"3ae1197b-1f7e-43e2-8168-86b4627c05f4","block_type":"box","text":"Investment in Emerging Markets.","page_number":81,"box":{"x":102,"y":143,"width":242,"height":11}},{"id":"c0cd1355-fdd5-4fe2-9e9b-2be074850800","block_type":"box","text":"General.","page_number":81,"box":{"x":102,"y":166,"width":58,"height":9}},{"id":"dd6c9e4d-9b8f-4793-94e8-a42e2ec1cd64","block_type":"box","text":"Cer tain Funds may invest in the securities of issuers domiciled in various countries with emerging capital","page_number":81,"box":{"x":102,"y":188,"width":748,"height":12}},{"id":"05881324-be69-44d6-8930-2113fe91663d","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":81,"box":{"x":69,"y":204,"width":840,"height":11}},{"id":"a065327a-4095-43ce-a8c2-371d5f360a1f","block_type":"box","text":"that is (i) generally recognized to be an emerging market country by the international financial community, such as","page_number":81,"box":{"x":68,"y":218,"width":813,"height":12}},{"id":"d7031333-420d-4d38-84a4-4d178cd6d6a8","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":81,"box":{"x":68,"y":234,"width":836,"height":11}},{"id":"4fbb4b79-5523-4210-969d-60550374ee26","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":81,"box":{"x":69,"y":249,"width":839,"height":11}},{"id":"1c33df67-c386-415b-816c-60741bb5f1d0","block_type":"box","text":"index that is generally representative of emerging markets. Countries with emerging markets can be found in regions","page_number":81,"box":{"x":70,"y":264,"width":831,"height":11}},{"id":"ffcf16b7-d34b-4472-ba8c-cc3af9ea8c46","block_type":"box","text":"such as Asia, Latin America, Eastern Europe and Africa.","page_number":81,"box":{"x":69,"y":279,"width":396,"height":11}},{"id":"a2ff6a7d-f9ec-4b85-9962-14cbeda43167","block_type":"box","text":"Investments in the securities of issuers domiciled in countries with emerging capital markets involve cer tain","page_number":81,"box":{"x":102,"y":302,"width":770,"height":11}},{"id":"39911b8d-7f29-4d3b-aa08-4391c73ec38c","block_type":"box","text":"additional risks that do not generally apply to investments in securities of issuers in more developed capital markets,","page_number":81,"box":{"x":69,"y":317,"width":835,"height":11}},{"id":"8d38404e-c92e-450f-8dfa-c4944682ab31","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":81,"box":{"x":69,"y":332,"width":828,"height":11}},{"id":"32941c25-2e1a-40b3-b238-71794fbc3998","block_type":"box","text":"securities, as compared to securities of comparable issuers in more developed capital markets; (ii) uncer tain","page_number":81,"box":{"x":69,"y":347,"width":779,"height":11}},{"id":"7ef870df-9d1c-4a3d-9083-569690551d16","block_type":"box","text":"national policies and social, political and economic instability, increasing the potential for expropriation of assets,","page_number":81,"box":{"x":69,"y":362,"width":809,"height":11}},{"id":"1b61044f-9a24-4cf7-93e3-476eaff607e8","block_type":"box","text":"confiscatory taxation, high rates of inflation or unfavorable diplomatic developments; (iii) possible fluctuations in","page_number":81,"box":{"x":69,"y":377,"width":800,"height":12}},{"id":"8882246e-4c39-489a-8143-987300e02f38","block_type":"box","text":"exchange rates, differing legal systems and the existence or possible imposition of exchange controls, custodial","page_number":81,"box":{"x":69,"y":392,"width":800,"height":12}},{"id":"b2138626-713d-44f0-bfee-ea38f46e4d72","block_type":"box","text":"restrictions or other foreign or U.S. Governmental laws or restrictions applicable to such investments; (iv) national","page_number":81,"box":{"x":69,"y":407,"width":811,"height":12}},{"id":"abb6503d-fb91-4250-96d3-1a218f4b6fbe","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":81,"box":{"x":70,"y":423,"width":824,"height":11}},{"id":"318d59d6-c843-48fd-80c5-290a2f1c7f02","block_type":"box","text":"deemed sensitive to national interests; and (v) the lack or relatively early development of legal structures governing","page_number":81,"box":{"x":69,"y":438,"width":823,"height":11}},{"id":"756223fb-0bfa-488d-a667-ff80c081ab61","block_type":"box","text":"private and foreign investments and private proper ty. In addition to withholding taxes on investment income, some","page_number":81,"box":{"x":70,"y":453,"width":813,"height":11}},{"id":"5c03afea-a208-47bc-a810-a5b91614a4a3","block_type":"box","text":"countries with emerging markets may impose differential capital gains taxes on foreign investors.","page_number":81,"box":{"x":69,"y":468,"width":694,"height":11}},{"id":"56fecf02-a1ab-480e-b830-b4ac2b606331","block_type":"box","text":"Political and economic structures in emerging market countries may be undergoing significant evolution and","page_number":81,"box":{"x":102,"y":491,"width":767,"height":11}},{"id":"a27c55d9-d045-42ed-9d28-01ccbb5f22aa","block_type":"box","text":"rapid development, and these countries may lack the social, political and economic stability characteristic of more","page_number":81,"box":{"x":69,"y":506,"width":814,"height":11}},{"id":"10d7c09d-5eac-468b-9ec2-9c0e84e812eb","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":81,"box":{"x":69,"y":521,"width":792,"height":11}},{"id":"69b2a78c-b745-4ee2-a34a-c4588e48550e","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":81,"box":{"x":69,"y":536,"width":838,"height":11}},{"id":"09941b00-66ee-4164-8264-945b5b197445","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":81,"box":{"x":69,"y":551,"width":828,"height":11}},{"id":"668d9d5b-5ac7-4edc-aecf-b44e1f4393b0","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":81,"box":{"x":68,"y":566,"width":816,"height":11}},{"id":"c3525333-bda8-4617-b1d9-635f68c6047e","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":81,"box":{"x":70,"y":581,"width":802,"height":11}},{"id":"fb22b2aa-3900-4559-a926-b498d4b4faed","block_type":"box","text":"including the risks of nationalization or expropriation of assets, may be heightened. In addition, unanticipated political","page_number":81,"box":{"x":70,"y":596,"width":838,"height":12}},{"id":"f8a09cd1-8685-4e84-a7e2-7a30bd4b9eb9","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":81,"box":{"x":69,"y":612,"width":788,"height":11}},{"id":"e9e39083-f845-423d-a57e-57642357bb14","block_type":"box","text":"additional investments. The small size and inexperience of the securities markets in cer tain of these countries and","page_number":81,"box":{"x":69,"y":627,"width":819,"height":11}},{"id":"73143ff8-6377-4e2c-948f-40a05e9f81dd","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":81,"box":{"x":68,"y":642,"width":838,"height":11}},{"id":"dc9ca7a2-32b2-4150-82fa-250c2d228265","block_type":"box","text":"volatile than investments in more established markets.","page_number":81,"box":{"x":68,"y":657,"width":392,"height":9}},{"id":"0ee77434-72a9-4a6e-9845-bd5bb6a8507d","block_type":"box","text":"Also, there may be less publicly available information about issuers in emerging markets than would be available","page_number":81,"box":{"x":101,"y":680,"width":805,"height":11}},{"id":"426301f0-95a1-424e-b874-efb746e293ae","block_type":"box","text":"about issuers in more developed capital markets, and such issuers may not be subject to accounting, auditing and","page_number":81,"box":{"x":69,"y":695,"width":818,"height":11}},{"id":"05d4f38a-b030-45dc-9c64-d1e65fbe278c","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":81,"box":{"x":68,"y":710,"width":831,"height":11}},{"id":"8fe6dcb3-4952-49ee-aeba-fefcd27e0eb9","block_type":"box","text":"countries with emerging capital markets, repor ting standards vary widely. As a result, traditional investment","page_number":81,"box":{"x":69,"y":725,"width":768,"height":11}},{"id":"3e04cf51-8447-4381-974e-8c3df7d89546","block_type":"box","text":"measurements used in the United States, such as price/earnings ratios, may not be applicable. Emerging market","page_number":81,"box":{"x":69,"y":740,"width":811,"height":11}},{"id":"4b564042-808a-4127-b5e1-23690654fbe6","block_type":"box","text":"securities may be substantially less liquid than, and more volatile than, those of mature markets, and company","page_number":81,"box":{"x":69,"y":755,"width":795,"height":11}},{"id":"4cf153f1-2e91-412e-90e9-422bc984104f","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":81,"box":{"x":69,"y":770,"width":814,"height":12}},{"id":"fd09045a-90ca-4799-81e5-78a8a7f2e412","block_type":"box","text":"acquisition or disposal of securities.","page_number":81,"box":{"x":69,"y":785,"width":257,"height":11}},{"id":"245f7cce-8fe2-443b-afa4-2728720ebca1","block_type":"box","text":"Practices in relation to settlement of securities transactions in emerging markets involve higher risks than those","page_number":81,"box":{"x":102,"y":808,"width":800,"height":11}},{"id":"12d63329-4584-439e-8af2-ca74a2b38d67","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":81,"box":{"x":70,"y":823,"width":769,"height":11}},{"id":"67799609-20bf-44b4-b1d8-8af2ee06a0f8","block_type":"box","text":"capitalized, and custody and registration of assets in some countries may be unreliable. The possibility of fraud,","page_number":81,"box":{"x":69,"y":838,"width":798,"height":12}},{"id":"03be1b80-4931-4a5a-9c56-182fae32c593","block_type":"box","text":"negligence, undue influence being exer ted by the issuer or refusal to recognize ownership exists in some emerging","page_number":81,"box":{"x":69,"y":853,"width":819,"height":12}},{"id":"e759f4cd-8b9a-4d5f-882f-2d7f70dbdb7e","block_type":"box","text":"markets, and, along with other factors, could result in ownership registration being completely lost. A Fund would","page_number":81,"box":{"x":69,"y":869,"width":804,"height":11}},{"id":"e46318ab-6e0b-4e00-9c09-9c3a4d8c4890","block_type":"box","text":"absorb any loss resulting from such registration problems and may have no successful claim for compensation.","page_number":81,"box":{"x":69,"y":884,"width":794,"height":11}},{"id":"a1edfb82-eb75-40a9-82eb-692c21f9e92b","block_type":"box","text":"II-35","page_number":81,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2611b1f3-3d34-4a08-8eae-6833c70f5dfb","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":81,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0a98de34-a802-4d0b-aa0d-1d7c657c0fd6","block_type":"box","text":"Investment in non-dollar denominated securities including securities from issuers located in emerging market","page_number":82,"box":{"x":102,"y":45,"width":778,"height":11}},{"id":"120be17d-4693-4f35-94dd-d9c5acae537c","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":82,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"545174fd-c1df-492f-95fe-ea8ee9e206f4","block_type":"box","text":"foreign currencies pending investment or conversion into U.S. dollars. Some of these instruments may have the","page_number":82,"box":{"x":68,"y":75,"width":797,"height":11}},{"id":"4d919c7d-6101-4b0d-8dab-778c073a4ced","block_type":"box","text":"characteristics of futures contracts. In addition, cer tain Funds may engage in foreign currency exchange transactions","page_number":82,"box":{"x":69,"y":90,"width":832,"height":11}},{"id":"32b3af18-565e-450d-879e-128d665f5bfe","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":82,"box":{"x":68,"y":105,"width":799,"height":11}},{"id":"010e4f60-8049-4b58-8e8b-b067074ef84a","block_type":"box","text":"per formance. These investments and transactions involving foreign securities, currencies, options (including options","page_number":82,"box":{"x":70,"y":120,"width":829,"height":12}},{"id":"b83d56ed-261a-4645-a576-bdd11480b638","block_type":"box","text":"that relate to foreign currencies), futures, hedging and cross-hedging are described under “Derivatives.”","page_number":82,"box":{"x":68,"y":135,"width":740,"height":12}},{"id":"df5d0d59-3ad3-4b88-aba3-1d986ff2b8aa","block_type":"box","text":"Risks of Investing in Asia-Pacific Countries.","page_number":82,"box":{"x":102,"y":158,"width":305,"height":11}},{"id":"b6c12149-280d-4571-8b22-0ff245e71f83","block_type":"box","text":"In addition to the risks of foreign investing and the risks of investing","page_number":82,"box":{"x":414,"y":158,"width":485,"height":11}},{"id":"95c09388-8cb2-4914-bc9f-8d977195b436","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":82,"box":{"x":70,"y":173,"width":832,"height":11}},{"id":"67d1c5ad-9732-404e-ad15-a8bc88e093b6","block_type":"box","text":"additional or specific risks. Cer tain Funds may make substantial investments in Asia-Pacific countries. In many of","page_number":82,"box":{"x":69,"y":188,"width":808,"height":11}},{"id":"68b71975-8620-42c2-baed-0b873e6cfe03","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":82,"box":{"x":68,"y":203,"width":838,"height":12}},{"id":"dcecdf64-7a45-43fd-a30e-9be0f1eba40c","block_type":"box","text":"representing a limited number of industries, as well as a high concentration of investors and financial intermediaries.","page_number":82,"box":{"x":69,"y":218,"width":834,"height":12}},{"id":"dc0851b7-0899-4f07-9813-f5abe11d3277","block_type":"box","text":"Many of these markets also may be affected by developments with respect to more established markets in the","page_number":82,"box":{"x":70,"y":234,"width":791,"height":11}},{"id":"f4fba093-0f77-49d4-b1c3-9a5dcba6b10b","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":82,"box":{"x":69,"y":249,"width":804,"height":11}},{"id":"deb5227a-4e49-44a3-86d0-58dbf4402d84","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":82,"box":{"x":69,"y":264,"width":833,"height":11}},{"id":"c53c4b08-0db8-4b1e-aab8-fcb811e4d8b6","block_type":"box","text":"requirements for open-end investment companies and the restrictions on foreign investment discussed below, result","page_number":82,"box":{"x":69,"y":279,"width":830,"height":11}},{"id":"066af15f-f555-4808-a4ef-898294e685e4","block_type":"box","text":"in potentially fewer investment oppor tunities for a Fund and may have an adverse impact on the investment","page_number":82,"box":{"x":70,"y":294,"width":766,"height":11}},{"id":"c1d2805c-11cd-4662-8a50-0936b28d9e24","block_type":"box","text":"per formance of the Fund.","page_number":82,"box":{"x":70,"y":309,"width":179,"height":11}},{"id":"2cfc480c-46dc-4469-862c-7f870664728e","block_type":"box","text":"Many of the developing market Asia-Pacific countries may be subject to a greater degree of economic, political","page_number":82,"box":{"x":102,"y":332,"width":784,"height":11}},{"id":"210aff74-60bb-49ba-96e0-d2a0d378d833","block_type":"box","text":"and social instability than is the case in the United States and Western European countries. Such instability may","page_number":82,"box":{"x":69,"y":347,"width":803,"height":11}},{"id":"f918257d-85f0-4b1e-9008-0168c7e9bbf1","block_type":"box","text":"result from, among other things: (i) authoritarian governments or military involvement in political and economic","page_number":82,"box":{"x":69,"y":362,"width":788,"height":11}},{"id":"ea4b4a10-068b-47fd-ab75-4a19114e5d12","block_type":"box","text":"decision-making, including changes in government through extra-constitutional means; (ii) popular unrest associated","page_number":82,"box":{"x":69,"y":377,"width":827,"height":12}},{"id":"ff784adc-4806-40bc-bbd5-0c2fb618cf00","block_type":"box","text":"with demands for improved political, economic and social conditions; (iii) internal insurgencies; (iv) hostile relations","page_number":82,"box":{"x":68,"y":392,"width":823,"height":12}},{"id":"a67992fb-5256-45dc-a6cc-ecec9c9d328f","block_type":"box","text":"with neighboring countries; and (v) ethnic, religious and racial disaffection. In addition, the governments of many of","page_number":82,"box":{"x":68,"y":407,"width":822,"height":12}},{"id":"36fb571a-5e45-45ff-bbb8-019991e0bbbe","block_type":"box","text":"such countries, such as Indonesia, have a substantial role in regulating and supervising the economy. Another risk","page_number":82,"box":{"x":69,"y":423,"width":818,"height":11}},{"id":"1ccc3de1-c9ae-4a94-8d12-2ba6049a4f06","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":82,"box":{"x":69,"y":438,"width":821,"height":11}},{"id":"1ce9e540-b05d-460c-8e11-1330026cc03b","block_type":"box","text":"international trade. The existence of overburdened infrastructure and obsolete financial systems also presents risks","page_number":82,"box":{"x":70,"y":453,"width":827,"height":11}},{"id":"f0ef0608-8d2a-42a2-aa69-e23625fea5eb","block_type":"box","text":"in cer tain countries, as do environmental problems. Cer tain economies also depend to a significant degree upon","page_number":82,"box":{"x":70,"y":468,"width":803,"height":11}},{"id":"2e721b5b-b2ef-48ce-9a07-6385e211c332","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":82,"box":{"x":69,"y":483,"width":824,"height":11}},{"id":"ee38b9f3-91fa-43ad-8974-5a172e7da2d5","block_type":"box","text":"affected by a variety of factors.","page_number":82,"box":{"x":69,"y":498,"width":220,"height":11}},{"id":"1ea7b077-e7a2-4c1a-99bc-e5754d9723e9","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":82,"box":{"x":101,"y":521,"width":785,"height":11}},{"id":"6dcf0ee1-fb6d-4238-9b73-d43130bdb378","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":82,"box":{"x":70,"y":536,"width":789,"height":11}},{"id":"f83cdb83-d9ce-4041-b902-a993b3b8fa15","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":82,"box":{"x":69,"y":551,"width":814,"height":11}},{"id":"3b5c6f70-497f-40b6-801d-1567d15a459f","block_type":"box","text":"clear in cer tain emerging market Asia-Pacific countries. Similarly, the rights of investors in developing market Asia","page_number":82,"box":{"x":69,"y":566,"width":813,"height":11}},{"id":"8b433536-3f3b-4b26-abac-fc8d377b59e6","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":82,"box":{"x":69,"y":581,"width":777,"height":11}},{"id":"463c918b-3ed3-487f-810a-e6ce3fa8e6f9","block_type":"box","text":"impossible to obtain and/or enforce a judgment in a developing market Asia-Pacific country.","page_number":82,"box":{"x":70,"y":596,"width":652,"height":12}},{"id":"8d4e7abf-a2ac-447b-95b0-6aaafcf661b0","block_type":"box","text":"Governments of many developing market Asia-Pacific countries have exercised and continue to exercise","page_number":82,"box":{"x":102,"y":619,"width":737,"height":11}},{"id":"f66875a7-c9ee-4e32-a6ca-a2a0a3a4085b","block_type":"box","text":"substantial influence over many aspects of the private sector. In cer tain cases, the government owns or controls","page_number":82,"box":{"x":69,"y":634,"width":803,"height":12}},{"id":"b6a4ac30-316d-488f-83c1-ea6056126a7c","block_type":"box","text":"many companies, including the largest in the country. Accordingly, government actions in the future could have a","page_number":82,"box":{"x":69,"y":649,"width":801,"height":12}},{"id":"dd088d71-9791-45ec-82f2-93bfd6df1989","block_type":"box","text":"significant effect on economic conditions in developing market Asia-Pacific countries, which could affect private","page_number":82,"box":{"x":69,"y":664,"width":793,"height":12}},{"id":"64ff7c61-d6c0-48e5-80e9-7a2077604970","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":82,"box":{"x":69,"y":680,"width":820,"height":11}},{"id":"ae291ef8-2b2e-41d5-a22a-11a419224d6b","block_type":"box","text":"statistics of developing market Asia-Pacific countries may be less reliable than economic statistics of more developed","page_number":82,"box":{"x":69,"y":695,"width":839,"height":11}},{"id":"8d9ca3d6-11b3-43d6-b0ce-aaeb508f2a24","block_type":"box","text":"nations.","page_number":82,"box":{"x":69,"y":710,"width":56,"height":9}},{"id":"e7b8688a-5574-4288-9f81-124ca074da6c","block_type":"box","text":"In addition to the relative lack of publicly available information about developing market Asia-Pacific issuers and","page_number":82,"box":{"x":102,"y":732,"width":794,"height":12}},{"id":"8c2bf682-8642-4fd5-ba01-27edf8e63e1d","block_type":"box","text":"the possibility that such issuers may not be subject to the same accounting, auditing and financial repor ting","page_number":82,"box":{"x":68,"y":748,"width":773,"height":11}},{"id":"5f27a767-3a2e-4e66-9f7c-7e2171695eeb","block_type":"box","text":"standards as U.S. companies, inflation accounting rules in some developing market Asia-Pacific countries require","page_number":82,"box":{"x":69,"y":763,"width":808,"height":11}},{"id":"ed81d926-f28f-4d2a-8a20-4f35c67e9d5c","block_type":"box","text":"companies that keep accounting records in the local currency, for both tax and accounting purposes, to restate","page_number":82,"box":{"x":69,"y":778,"width":791,"height":11}},{"id":"0013eab3-26ed-4e1a-b251-2532eff8ea9b","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":82,"box":{"x":69,"y":793,"width":790,"height":11}},{"id":"5de4c499-b973-4713-a02e-33f01b427801","block_type":"box","text":"constant purchasing power. Inflation accounting may indirectly generate losses or profits for cer tain developing","page_number":82,"box":{"x":69,"y":808,"width":790,"height":11}},{"id":"2ea057a0-948b-4ad5-9d2a-716afcccaae8","block_type":"box","text":"market Asia-Pacific companies.","page_number":82,"box":{"x":69,"y":823,"width":220,"height":11}},{"id":"9b1c8846-691a-49b4-9c74-c6afa202e016","block_type":"box","text":"Satisfactory custodial services for investment securities may not be available in some developing Asia-Pacific","page_number":82,"box":{"x":102,"y":846,"width":780,"height":11}},{"id":"b7a217a3-f4ec-4f0b-8f29-e0d18551079b","block_type":"box","text":"countries, which may result in the Fund incurring additional costs and delays in providing transpor tation and custody","page_number":82,"box":{"x":69,"y":861,"width":829,"height":11}},{"id":"63f54ead-af31-4a15-bfdb-7243217d6807","block_type":"box","text":"services for such securities outside such countries.","page_number":82,"box":{"x":69,"y":876,"width":367,"height":9}},{"id":"942de817-3697-479b-bb55-3d62766a6b36","block_type":"box","text":"II-36","page_number":82,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b0e39d9c-23bc-4d7b-80e5-87ff58229acb","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":82,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"fcee4daa-dc28-467d-bdbf-ec30a960cc35","block_type":"box","text":"Cer tain developing Asia-Pacific countries, such as the Philippines, India and Turkey, are especially large debtors","page_number":83,"box":{"x":102,"y":45,"width":795,"height":11}},{"id":"84db2b87-58ea-43df-bc28-8b1a60ba96ab","block_type":"box","text":"to commercial banks and foreign governments.","page_number":83,"box":{"x":68,"y":60,"width":335,"height":11}},{"id":"4b41afbd-e7d4-44d0-a7e9-168f867d914d","block_type":"box","text":"Natural disasters in Asia-Pacific countries, and the resulting damage, could have a severe and negative impact","page_number":83,"box":{"x":102,"y":82,"width":788,"height":12}},{"id":"b3bcd80e-bfd5-4027-9004-bde4a3c42d00","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":83,"box":{"x":69,"y":98,"width":830,"height":11}},{"id":"7e5c5d83-59ed-4ff8-a675-9410921a6dc7","block_type":"box","text":"to conduct their businesses in the manner normally conducted.","page_number":83,"box":{"x":68,"y":113,"width":450,"height":11}},{"id":"ca2cc962-7ec9-4c95-857f-1b03f0356870","block_type":"box","text":"Fund management may determine that, notwithstanding otherwise favorable investment criteria, it may not be","page_number":83,"box":{"x":102,"y":135,"width":782,"height":12}},{"id":"e99e4c8f-dae0-4ee0-baec-bc024b2ead73","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":83,"box":{"x":70,"y":150,"width":819,"height":12}},{"id":"f85bf939-a2cc-4116-b135-99684d74c80a","block_type":"box","text":"which foreign investors, including management of the Fund, have had no or limited prior experience.","page_number":83,"box":{"x":68,"y":166,"width":711,"height":11}},{"id":"87614679-2c76-4515-bea5-bfd4971174f2","block_type":"box","text":"Restrictions on Foreign Investments in Asia-Pacific Countries.","page_number":83,"box":{"x":102,"y":188,"width":435,"height":12}},{"id":"4d94ca6e-d9f0-4630-8cfb-0f29cf0bfd1a","block_type":"box","text":"Some developing Asia-Pacific countries prohibit or","page_number":83,"box":{"x":543,"y":188,"width":355,"height":12}},{"id":"10e17179-0eaf-444d-afe1-4fca3cc36df5","block_type":"box","text":"impose substantial restrictions on investments in their capital markets, par ticularly their equity markets, by foreign","page_number":83,"box":{"x":70,"y":203,"width":817,"height":12}},{"id":"05606bcd-fd57-438e-b5f6-6d15b637710f","block_type":"box","text":"entities such as a Fund. As illustrations, cer tain countries may require governmental approval prior to investments by","page_number":83,"box":{"x":69,"y":219,"width":836,"height":11}},{"id":"f762a1e9-d8bb-4bca-96bb-2c8efdc5f2a5","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":83,"box":{"x":68,"y":234,"width":828,"height":11}},{"id":"1520aadb-5562-484c-b7f2-cf70a8b02424","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":83,"box":{"x":69,"y":249,"width":794,"height":11}},{"id":"9f072049-f079-488f-baad-dcc639ae73b2","block_type":"box","text":"(including price and shareholder rights) than securities of the company available for purchase by nationals. There can","page_number":83,"box":{"x":69,"y":264,"width":835,"height":11}},{"id":"48eb96a6-5f43-48bd-b8b2-5bee03348512","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":83,"box":{"x":69,"y":279,"width":820,"height":11}},{"id":"ff57ffb1-c7e3-415c-8806-4941c3c6ccf3","block_type":"box","text":"changes to restrictions on foreign ownership of securities subsequent to a Fund’s purchase of such securities may","page_number":83,"box":{"x":69,"y":294,"width":820,"height":11}},{"id":"b2f369a5-f365-4b32-a2dc-76d43880d0d5","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":83,"box":{"x":69,"y":309,"width":788,"height":11}},{"id":"e030e4ab-30f9-4fa9-b32e-c9815c3a7d72","block_type":"box","text":"issuers or industries deemed impor tant to national interests.","page_number":83,"box":{"x":70,"y":325,"width":434,"height":10}},{"id":"f191fa45-899a-424a-be4c-7c8970907e03","block_type":"box","text":"The manner in which foreign investors may invest in companies in cer tain developing Asia-Pacific countries, as","page_number":83,"box":{"x":101,"y":347,"width":787,"height":11}},{"id":"0958619d-be00-49b4-91d7-c6503da2908c","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":83,"box":{"x":68,"y":362,"width":833,"height":11}},{"id":"f49e248c-93bd-457f-b797-b782608af190","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":83,"box":{"x":69,"y":377,"width":820,"height":12}},{"id":"59e28d65-7916-46ce-9e67-a7f6b5c42dd5","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":83,"box":{"x":69,"y":392,"width":831,"height":12}},{"id":"b5c7dcd8-4281-4a00-96c2-747af7ebe908","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":83,"box":{"x":68,"y":407,"width":834,"height":12}},{"id":"c9fdf84d-422e-47c9-b863-4c2c265d8afd","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":83,"box":{"x":70,"y":423,"width":836,"height":11}},{"id":"3f9292bb-1431-4600-a2d8-dbc1c9059023","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":83,"box":{"x":69,"y":438,"width":800,"height":11}},{"id":"4d352f1e-32d0-4628-83fb-fb3e753d1384","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":83,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"f7d600e0-9c74-4c23-adbf-129341f6b765","block_type":"box","text":"investment at that time.","page_number":83,"box":{"x":70,"y":468,"width":168,"height":9}},{"id":"b461b168-ea5a-4f3c-9bfc-6c3647e27faf","block_type":"box","text":"Substantial limitations may exist in cer tain countries with respect to a Fund’s ability to repatriate investment","page_number":83,"box":{"x":102,"y":491,"width":774,"height":11}},{"id":"5f2c005a-201a-4973-b8f5-f1c0a92752ab","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":83,"box":{"x":70,"y":506,"width":803,"height":11}},{"id":"c641a423-2410-4deb-b33c-2202b894fb89","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":83,"box":{"x":69,"y":521,"width":789,"height":11}},{"id":"77d0168c-9c1f-4657-9ae5-e38bd56cbe01","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":83,"box":{"x":69,"y":536,"width":826,"height":11}},{"id":"780b1897-743a-4125-8350-95288d3ad9b4","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":83,"box":{"x":69,"y":551,"width":818,"height":11}},{"id":"b914616f-0088-417a-b80a-eff29a2d37c5","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":83,"box":{"x":68,"y":566,"width":826,"height":11}},{"id":"edf396ac-cba6-45d3-8810-9012d3472c79","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":83,"box":{"x":68,"y":581,"width":800,"height":12}},{"id":"4fa95716-8e62-4ea3-a45e-8066c3c2b9e7","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":83,"box":{"x":69,"y":596,"width":839,"height":12}},{"id":"ea8fb4ed-1183-4461-bc62-66b5533132a2","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":83,"box":{"x":68,"y":612,"width":798,"height":11}},{"id":"20806ff3-fd68-4181-bb63-213a08f0ece1","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":83,"box":{"x":69,"y":627,"width":795,"height":11}},{"id":"aa563a69-e574-4e46-a7f2-1f4b0bdc7520","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":83,"box":{"x":69,"y":642,"width":808,"height":11}},{"id":"81760cb1-a6ac-435c-b0d6-62289429a215","block_type":"box","text":"government).","page_number":83,"box":{"x":68,"y":657,"width":92,"height":11}},{"id":"b0cc9765-4f91-4521-9628-749e3574dbf0","block_type":"box","text":"In cer tain countries, banks or other financial institutions may be among the leading companies or have actively","page_number":83,"box":{"x":102,"y":680,"width":790,"height":11}},{"id":"0ca498d1-68b6-48ae-a872-b11c9e59fe60","block_type":"box","text":"traded securities available for investment. The Investment Company Act restricts a Fund’s investments in any equity","page_number":83,"box":{"x":68,"y":695,"width":828,"height":11}},{"id":"b2739734-da56-47ca-9a6b-361f5359d46a","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":83,"box":{"x":69,"y":710,"width":808,"height":11}},{"id":"6db5dddb-589c-4ac1-8e4e-dd4ed9077c2d","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":83,"box":{"x":69,"y":725,"width":829,"height":11}},{"id":"3b6332f3-1aa9-4458-a38f-67a2748d5844","block_type":"box","text":"foreign banks and other financial institutions.","page_number":83,"box":{"x":68,"y":740,"width":322,"height":11}},{"id":"636c9299-fe18-4aa5-a0b3-2760d957cc03","block_type":"box","text":"Political and economic structures in emerging market countries may be undergoing significant evolution and","page_number":83,"box":{"x":102,"y":763,"width":767,"height":11}},{"id":"80e0670b-0bc3-4b8d-a0b0-b248094d5990","block_type":"box","text":"rapid development, and these countries may lack the social, political and economic stability characteristic of more","page_number":83,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"467ee59e-05ed-434d-bfb0-3bd7137b4010","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":83,"box":{"x":69,"y":793,"width":809,"height":11}},{"id":"7d3551ee-bb01-40d0-82da-28cf25a85690","block_type":"box","text":"have at times nationalized or expropriated the assets of private companies. As a result the risks described above,","page_number":83,"box":{"x":69,"y":808,"width":812,"height":11}},{"id":"e7733f7c-82d6-4602-8074-fca38d360170","block_type":"box","text":"including the risks of nationalization or expropriation of assets, may be heightened. In addition, unanticipated political","page_number":83,"box":{"x":70,"y":823,"width":838,"height":12}},{"id":"c4d20a7a-f38f-4943-a80f-618036c3e39f","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":83,"box":{"x":69,"y":838,"width":788,"height":11}},{"id":"4674744f-b7e9-4768-9613-6b0c745a5149","block_type":"box","text":"additional investments in emerging market countries. The small size and inexperience of the securities markets in","page_number":83,"box":{"x":69,"y":853,"width":812,"height":12}},{"id":"e3c3a66e-5476-4aa8-9c9d-35aeb17e4459","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":83,"box":{"x":69,"y":869,"width":835,"height":11}},{"id":"0bd2002a-07ab-4687-9fa8-084f8baf5766","block_type":"box","text":"the countries illiquid and more volatile than investments in Japan or most Western European countries. There may be","page_number":83,"box":{"x":68,"y":884,"width":837,"height":11}},{"id":"9792ff94-f799-4398-86d9-637ad6c5a860","block_type":"box","text":"II-37","page_number":83,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b8510240-6b5d-444e-aa96-5d60240fc08b","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":83,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2f98042f-e9a3-4fd4-baed-98f7f90bda57","block_type":"box","text":"little financial or accounting information available with respect to issuers located in cer tain emerging market","page_number":84,"box":{"x":70,"y":45,"width":771,"height":11}},{"id":"9b315af8-90d0-4019-a061-a3db488480d5","block_type":"box","text":"countries, and it may be difficult to assess the value or prospects of an investment in such issuers.","page_number":84,"box":{"x":69,"y":60,"width":711,"height":11}},{"id":"ec4cafd3-3565-482f-a85e-386502ff7992","block_type":"box","text":"The expense ratios of the Funds investing significantly in foreign securities can be expected to be higher than","page_number":84,"box":{"x":101,"y":82,"width":779,"height":12}},{"id":"ada03708-5a7b-4bef-9ea1-4880918b6e2a","block_type":"box","text":"those of Funds investing primarily in domestic securities. The costs attributable to investing abroad are usually higher","page_number":84,"box":{"x":68,"y":98,"width":840,"height":11}},{"id":"5eead4e7-b9ba-4c36-b646-b8eb52845f27","block_type":"box","text":"for several reasons, such as the higher cost of custody of foreign securities, higher commissions paid on comparable","page_number":84,"box":{"x":68,"y":113,"width":838,"height":11}},{"id":"7e346783-2a65-4d07-86c5-00a6c36cc1b6","block_type":"box","text":"transactions on foreign markets and additional costs arising from delays in settlements of transactions involving","page_number":84,"box":{"x":68,"y":128,"width":802,"height":11}},{"id":"d4b18989-164d-463f-817e-bb606f6cd041","block_type":"box","text":"foreign securities.","page_number":84,"box":{"x":68,"y":143,"width":127,"height":11}},{"id":"91c3ad22-b04f-437c-ae6f-ffd76f964620","block_type":"box","text":"Risks of Investments in Russia.","page_number":84,"box":{"x":102,"y":166,"width":224,"height":9}},{"id":"1a23837c-cf89-49a3-96b3-f448e7a2f74a","block_type":"box","text":"A Fund may invest a por tion of its assets in securities issued by companies","page_number":84,"box":{"x":332,"y":166,"width":539,"height":11}},{"id":"22f498ba-a4c2-480f-b50c-67dc63665624","block_type":"box","text":"located in Russia. The Russian securities market suffers from a variety of problems described above in “Investment","page_number":84,"box":{"x":70,"y":181,"width":826,"height":11}},{"id":"d9a89a84-ee0f-4a42-89ee-796519234471","block_type":"box","text":"in Emerging Markets” not encountered in more developed markets. The Russian securities market is relatively new,","page_number":84,"box":{"x":70,"y":196,"width":821,"height":11}},{"id":"26a3cbfc-e83e-4f26-a527-654a4394c843","block_type":"box","text":"and a substantial por tion of securities transactions in Russia are privately negotiated outside of stock exchanges.","page_number":84,"box":{"x":69,"y":211,"width":812,"height":11}},{"id":"71fc4280-c083-4c05-a36d-7e6bc8eca1c5","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":84,"box":{"x":68,"y":226,"width":824,"height":11}},{"id":"a7c7483b-2db0-4e96-8ad0-d15baa2d9414","block_type":"box","text":"make obtaining accurate prices on por tfolio securities from independent sources more difficult than in more","page_number":84,"box":{"x":69,"y":241,"width":771,"height":11}},{"id":"428d7d8c-5fda-42e8-ace5-f4054572d1da","block_type":"box","text":"developed markets.","page_number":84,"box":{"x":69,"y":257,"width":138,"height":10}},{"id":"9b81673c-0d70-4431-ba6c-cc3e8f96c2e4","block_type":"box","text":"Because of the underdeveloped state of Russia’s securities markets and banking and telecommunication","page_number":84,"box":{"x":102,"y":279,"width":751,"height":11}},{"id":"4e26058d-5c49-40d7-9274-900e451f9e27","block_type":"box","text":"systems, settlement, clearing and registration of securities transactions are subject to additional risks. Prior to 2013,","page_number":84,"box":{"x":69,"y":294,"width":839,"height":11}},{"id":"bf086022-1c53-49f5-81c1-e632116a0e5e","block_type":"box","text":"there was no central registration system for equity share registration in Russia and registration was carried out either","page_number":84,"box":{"x":68,"y":309,"width":838,"height":11}},{"id":"46d44526-af19-40c3-9530-9ec4a3fbad11","block_type":"box","text":"by the issuers themselves or by registrars located throughout Russia. These registrars may not have been subject to","page_number":84,"box":{"x":69,"y":325,"width":831,"height":11}},{"id":"8ed6d513-b9ea-430a-a5f6-30c16d9e71ac","block_type":"box","text":"effective state supervision or licensed with any governmental entity. In 2013, Russia established the National","page_number":84,"box":{"x":69,"y":339,"width":783,"height":12}},{"id":"98fdd4a5-6d37-4549-ab59-9c75b1dd8005","block_type":"box","text":"Settlement Depository (“NSD”) as a recognized central securities depository, and title to Russian equities held","page_number":84,"box":{"x":69,"y":355,"width":790,"height":11}},{"id":"4526d00d-e302-4678-a89c-c0354b2f26a2","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":84,"box":{"x":68,"y":370,"width":833,"height":11}},{"id":"e7c5805c-9def-46bd-8fac-0cb57fe6360f","block_type":"box","text":"implementation of the NSD has enhanced the efficiency and transparency of the Russian securities market, loss still","page_number":84,"box":{"x":70,"y":385,"width":831,"height":11}},{"id":"a3e872cd-76c8-467e-ae1f-af9deed9bc11","block_type":"box","text":"can occur. Additionally, issuers and registrars remain prominent in the validation and approval of documentation","page_number":84,"box":{"x":69,"y":400,"width":797,"height":11}},{"id":"ea19a20f-e212-4c1a-8f19-627283cb7130","block_type":"box","text":"requirements for corporate action processing in Russia, and, because the documentation requirements and approval","page_number":84,"box":{"x":69,"y":415,"width":832,"height":11}},{"id":"d1ebaaf5-3d7f-437e-9db9-4b36046b260d","block_type":"box","text":"criteria vary between registrars and issuers, there remain inconsistent market standards in the Russian market with","page_number":84,"box":{"x":69,"y":430,"width":827,"height":11}},{"id":"736702f7-7809-4783-93c5-c7725295d069","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":84,"box":{"x":69,"y":445,"width":800,"height":11}},{"id":"f83eec2b-36b0-42e9-a6e0-4b6de6d66996","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":84,"box":{"x":69,"y":460,"width":813,"height":12}},{"id":"b3899d4c-78fb-411d-bf9a-4d7073dd6e55","block_type":"box","text":"rights or otherwise remedy the loss. Russian securities laws may not recognize foreign nominee accounts held with a","page_number":84,"box":{"x":69,"y":475,"width":836,"height":12}},{"id":"13ea3a29-f693-4e79-b270-213836c00de2","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":84,"box":{"x":69,"y":491,"width":824,"height":11}},{"id":"4c17cd98-4a78-4d7d-859f-cfac00ac5ef7","block_type":"box","text":"their clients. A Fund also may experience difficulty in obtaining and/or enforcing judgments in Russia.","page_number":84,"box":{"x":68,"y":506,"width":723,"height":11}},{"id":"3402ed26-0e8a-45de-909b-6ea2760eda52","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":84,"box":{"x":102,"y":528,"width":801,"height":12}},{"id":"8083469b-061a-4132-a019-6929e246ae0c","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":84,"box":{"x":69,"y":543,"width":826,"height":12}},{"id":"03925bbc-51e9-4df5-923b-666043bb3ad0","block_type":"box","text":"of Ukraine on February 24, 2022. The extent and duration of the military action, resulting sanctions and resulting","page_number":84,"box":{"x":69,"y":559,"width":809,"height":11}},{"id":"6fdbb41c-cf27-430a-955f-a763e913f404","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":84,"box":{"x":68,"y":574,"width":821,"height":11}},{"id":"addb36ad-9a26-4c1f-b5f0-3fade8f3544c","block_type":"box","text":"are impossible to predict. Any such disruptions caused by Russian military action or other actions (including","page_number":84,"box":{"x":69,"y":589,"width":770,"height":11}},{"id":"84186011-f197-456f-9f8b-49292f393037","block_type":"box","text":"cyberattacks and espionage) or resulting actual and threatened responses to such activity, including purchasing and","page_number":84,"box":{"x":69,"y":604,"width":827,"height":11}},{"id":"92c97f0e-b833-4daa-830e-ef927272e1ae","block_type":"box","text":"financing restrictions, boycotts or changes in consumer or purchaser preferences, sanctions, tariffs or cyberattacks","page_number":84,"box":{"x":68,"y":619,"width":824,"height":11}},{"id":"634c2653-a496-482c-b969-4451b28b528f","block_type":"box","text":"on the Russian government, Russian companies or Russian individuals, including politicians, may impact Russia’s","page_number":84,"box":{"x":69,"y":634,"width":814,"height":12}},{"id":"3322214a-ea80-4c46-bfd9-7e1733d1d1d2","block_type":"box","text":"economy and Russian issuers of securities in which the Fund invests. Actual and threatened responses to such","page_number":84,"box":{"x":69,"y":649,"width":795,"height":12}},{"id":"eae7d3c2-dad1-4cae-9534-64526843fcf4","block_type":"box","text":"activity, including purchasing restrictions, sanctions, tariffs or cyberattacks on the Russian government or Russian","page_number":84,"box":{"x":69,"y":664,"width":814,"height":12}},{"id":"efd4c2fc-bfb6-467b-ae86-17cc00755274","block_type":"box","text":"companies, may impact Russia’s economy and Russian issuers of securities in which the Fund invests. Actual and","page_number":84,"box":{"x":69,"y":680,"width":816,"height":11}},{"id":"9cb44033-e71a-4ed8-a99f-e6cdcfc0cf55","block_type":"box","text":"threatened responses to such military action may also impact the markets for cer tain Russian commodities, such as","page_number":84,"box":{"x":68,"y":695,"width":836,"height":11}},{"id":"63f00195-0317-45bd-a4d0-319cf7e01bcc","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":84,"box":{"x":69,"y":710,"width":829,"height":11}},{"id":"a251f14b-afff-42a7-b6e9-475daf209547","block_type":"box","text":"sectors globally.","page_number":84,"box":{"x":69,"y":725,"width":112,"height":11}},{"id":"f360c930-9a86-429f-a6fd-185bd37815b1","block_type":"box","text":"Governments in the United States and many other countries (collectively, the “Sanctioning Bodies”) have","page_number":84,"box":{"x":102,"y":748,"width":745,"height":11}},{"id":"6ccfdce5-42a4-4bff-aa40-5b5aa2763ede","block_type":"box","text":"imposed economic sanctions, which can consist of prohibiting cer tain securities trades, cer tain private transactions","page_number":84,"box":{"x":70,"y":763,"width":826,"height":11}},{"id":"9d21f049-f770-47d4-b505-8c924dc9214f","block_type":"box","text":"in the energy sector, asset freezes and prohibition of all business, against cer tain Russian individuals, including","page_number":84,"box":{"x":70,"y":778,"width":799,"height":11}},{"id":"c90458b1-5723-46e8-bf25-8b6ab4a6330b","block_type":"box","text":"politicians, and Russian corporate and banking entities. The Sanctioning Bodies, or others, could also institute","page_number":84,"box":{"x":70,"y":793,"width":788,"height":11}},{"id":"03e9126b-3f71-4020-8d75-a99ad965c9df","block_type":"box","text":"broader sanctions on Russia, including banning Russia from global payments systems that facilitate cross-border","page_number":84,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"bea68e0d-01e2-49d0-b890-7de9ac67dadd","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":84,"box":{"x":70,"y":823,"width":782,"height":11}},{"id":"3ce079bd-f531-4013-8d78-471c1a8534d1","block_type":"box","text":"liquidity of Russian securities, a weakening of the ruble or other adverse consequences to the Russian economy.","page_number":84,"box":{"x":70,"y":838,"width":802,"height":12}},{"id":"4101bc86-647c-4263-9580-21981f470231","block_type":"box","text":"These sanctions have resulted and may continue to result in the immediate freeze of Russian securities and/or","page_number":84,"box":{"x":68,"y":853,"width":797,"height":12}},{"id":"23be8c1d-73a4-4f58-b4c5-7a3c2726fed4","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":84,"box":{"x":68,"y":869,"width":804,"height":11}},{"id":"cb1b3a24-64e6-47b7-93d2-535dfda9a1d0","block_type":"box","text":"and/or assets. Sanctions could also result in Russia taking counter measures or retaliatory actions which may","page_number":84,"box":{"x":69,"y":884,"width":791,"height":11}},{"id":"62cb43a4-fece-49e0-ad14-72907cfdb3ae","block_type":"box","text":"fur ther impair the value and liquidity of Russian securities.","page_number":84,"box":{"x":68,"y":899,"width":417,"height":11}},{"id":"053f44d9-7b5f-42bb-acc2-2c86d35fb33b","block_type":"box","text":"II-38","page_number":84,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"da18f6a9-7925-4d3e-ae59-0c865ce3fd04","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":84,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4ac93c9e-e0c0-406a-b321-e305287a1368","block_type":"box","text":"Risks of Investing in Saudi Arabia.","page_number":85,"box":{"x":102,"y":45,"width":241,"height":11}},{"id":"4556b52b-7d2e-4f65-a5a2-b570ff4f751d","block_type":"box","text":"The ability of foreign investors (such as a Fund) to invest in Saudi Arabian","page_number":85,"box":{"x":350,"y":45,"width":523,"height":11}},{"id":"a3c5355d-1c5b-4b77-824a-a31ac42883b2","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":85,"box":{"x":70,"y":60,"width":838,"height":11}},{"id":"89f3dab5-d032-4379-b5b1-de80e070b559","block_type":"box","text":"and unforeseen risks could materialize due to foreign ownership in such securities. In addition, the Capital Market","page_number":85,"box":{"x":69,"y":75,"width":814,"height":11}},{"id":"207a3f7b-54ce-43e7-80d4-6cd49c6a8347","block_type":"box","text":"Authority (“CMA”) places investment limitations on the ownership of Saudi Arabian issuers by foreign investors,","page_number":85,"box":{"x":68,"y":90,"width":793,"height":11}},{"id":"5a3fa4f2-d803-4e6f-9148-1391a9838adc","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":85,"box":{"x":70,"y":105,"width":819,"height":11}},{"id":"d4d5598e-81c0-4891-9511-a54e9625288d","block_type":"box","text":"may prevent a Fund from investing in accordance with its strategy and contribute to tracking error against the","page_number":85,"box":{"x":69,"y":120,"width":777,"height":12}},{"id":"e3d3f957-8d26-43cb-80f6-b590110c3d4d","block_type":"box","text":"Underlying Index. These restrictions may be changed or new restrictions, such as licensing requirements, special","page_number":85,"box":{"x":70,"y":136,"width":803,"height":11}},{"id":"b0f69a61-dc47-49ed-a18c-43225d57a59c","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":85,"box":{"x":69,"y":150,"width":837,"height":12}},{"id":"cace25b8-2f04-4409-bbce-b8f7bf1e881a","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":85,"box":{"x":69,"y":166,"width":765,"height":11}},{"id":"16b296fa-cd54-4084-819c-01efd0cfcb21","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":85,"box":{"x":69,"y":181,"width":838,"height":11}},{"id":"7d7a0b3c-b9ca-4c64-bf4e-21a0e3196bc0","block_type":"box","text":"may be exacerbated, compared to more developed markets, given the limited history of foreign investment in the","page_number":85,"box":{"x":69,"y":196,"width":805,"height":11}},{"id":"caa5de90-188e-4b32-b468-ecc118009718","block_type":"box","text":"Saudi Arabian market. Investments in Saudi Arabia may also be subject to loss due to expropriation or nationalization","page_number":85,"box":{"x":69,"y":211,"width":837,"height":11}},{"id":"d4b774d5-0b7f-4fb8-b3a0-2918790edb71","block_type":"box","text":"of assets and proper ty or the imposition of restrictions on additional foreign investments and repatriation of capital.","page_number":85,"box":{"x":69,"y":226,"width":826,"height":11}},{"id":"57ed0bfe-f63a-4a19-8109-b91d755af264","block_type":"box","text":"Such heightened risks may include, among others, restrictions on and government intervention in international trade,","page_number":85,"box":{"x":69,"y":241,"width":834,"height":11}},{"id":"3c9f8e96-3e07-4dff-ab19-6d5338ad3f44","block_type":"box","text":"confiscatory taxation, political instability, including authoritarian and/or military involvement in governmental decision","page_number":85,"box":{"x":69,"y":256,"width":835,"height":12}},{"id":"dc348d65-93f8-4ce2-8b04-c132c53b7c02","block_type":"box","text":"making, armed conflict, crime and instability as a result of religious, ethnic and/or socioeconomic unrest. Saudi","page_number":85,"box":{"x":69,"y":271,"width":797,"height":12}},{"id":"22849fc7-a144-4db2-b40a-6ed5130275ad","block_type":"box","text":"Arabia has privatized, or has begun the process of privatizing, cer tain entities and industries. Newly privatized","page_number":85,"box":{"x":68,"y":286,"width":781,"height":12}},{"id":"28f1c4df-92f0-4dca-b242-73ff97f94109","block_type":"box","text":"companies may face strong competition from government-sponsored competitors that have not been privatized. In","page_number":85,"box":{"x":69,"y":302,"width":811,"height":11}},{"id":"6d415f72-7b89-4fed-832a-233f454ef5d3","block_type":"box","text":"some instances, investors in newly privatized entities have suffered losses due to the inability of the newly privatized","page_number":85,"box":{"x":69,"y":317,"width":833,"height":11}},{"id":"78e9095c-91dd-452a-9c48-d2aac0b29282","block_type":"box","text":"entities to adjust quickly to a competitive environment or changing regulatory and legal standards or, in some cases,","page_number":85,"box":{"x":69,"y":332,"width":831,"height":11}},{"id":"23dc5587-feda-49e5-b48a-ee985b0ac541","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":85,"box":{"x":69,"y":347,"width":823,"height":11}},{"id":"0529a2fb-7491-43d7-b0c0-95d6429aa603","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":85,"box":{"x":69,"y":362,"width":791,"height":11}},{"id":"09b7fe84-c6be-441c-9622-f1a5517834ec","block_type":"box","text":"company to foreign stockholders are generally subject to a 5% withholding tax (different tax rates may apply pursuant","page_number":85,"box":{"x":69,"y":377,"width":835,"height":12}},{"id":"04e07705-3f19-41dd-b0ee-35f39bd588e8","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":85,"box":{"x":68,"y":392,"width":799,"height":12}},{"id":"d5882cc7-92f5-478f-925b-4a0ecd333ada","block_type":"box","text":"countries involved in the sale of petroleum, and its economy is therefore vulnerable to changes in foreign currency","page_number":85,"box":{"x":69,"y":407,"width":815,"height":12}},{"id":"e63747ef-89df-4985-9584-8c4a22cb1197","block_type":"box","text":"values and the market for petroleum. As global demand for petroleum fluctuates, Saudi Arabia may be significantly","page_number":85,"box":{"x":68,"y":423,"width":818,"height":11}},{"id":"ce86d47e-d372-4bf9-8baa-e370fc0dc326","block_type":"box","text":"impacted.","page_number":85,"box":{"x":70,"y":438,"width":67,"height":11}},{"id":"a777540c-2b8e-4b86-bd78-f42cc77f2437","block_type":"box","text":"Like most Middle Eastern governments, the government of Saudi Arabia exercises substantial influence over","page_number":85,"box":{"x":102,"y":460,"width":773,"height":12}},{"id":"ebf3d7ee-8575-4944-b07f-5584547d4e53","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":85,"box":{"x":69,"y":475,"width":812,"height":12}},{"id":"d9125db1-1bc7-425e-9551-1b29fc1b164f","block_type":"box","text":"lagged significantly: restrictions on foreign ownership persist, and the government has an ownership stake in many","page_number":85,"box":{"x":70,"y":491,"width":818,"height":11}},{"id":"79f5de2b-61de-422b-b103-fa0ef0abacd5","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":85,"box":{"x":69,"y":506,"width":836,"height":11}},{"id":"31d832c6-0a13-4224-8719-a57cd1897882","block_type":"box","text":"Arabia has historically experienced strained relations with economic par tners worldwide, including other countries in","page_number":85,"box":{"x":68,"y":521,"width":826,"height":11}},{"id":"bc128eea-f05b-4784-b6bc-93fddf60b866","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":85,"box":{"x":68,"y":536,"width":809,"height":11}},{"id":"1e551519-5baf-4c84-8102-03c961ff4d46","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":85,"box":{"x":70,"y":551,"width":790,"height":11}},{"id":"ee7b70d4-cb28-43bf-937a-e54a331e6867","block_type":"box","text":"investments. Governmental actions in the future could have a significant effect on economic conditions in Saudi","page_number":85,"box":{"x":70,"y":566,"width":798,"height":11}},{"id":"f01ba134-1f78-456e-93cb-672c13e6b240","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":85,"box":{"x":68,"y":581,"width":781,"height":11}},{"id":"dae7c176-7c9c-4a9f-a7a9-99f368cdf0c3","block_type":"box","text":"por tfolio. Any economic sanctions on Saudi Arabian individuals or Saudi Arabian corporate entities, or even the threat","page_number":85,"box":{"x":70,"y":596,"width":836,"height":12}},{"id":"76225da2-9c17-456e-9037-ff199e3da3fc","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":85,"box":{"x":69,"y":612,"width":837,"height":11}},{"id":"dbab5f56-2b78-4a06-8b53-526d684fdf53","block_type":"box","text":"riyal or other adverse consequences to the Saudi Arabian economy. In addition, Saudi Arabia’s economy relies heavily","page_number":85,"box":{"x":69,"y":627,"width":838,"height":11}},{"id":"feb1da3f-04ee-471d-9369-38304a257d3c","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":85,"box":{"x":69,"y":642,"width":790,"height":11}},{"id":"965afdd7-c3e8-4d66-bac3-dc0104b025f1","block_type":"box","text":"economy.","page_number":85,"box":{"x":69,"y":659,"width":65,"height":9}},{"id":"9d6fac49-58fc-438d-915c-690ecadc0316","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":85,"box":{"x":101,"y":680,"width":747,"height":11}},{"id":"77d33fed-3bc8-431e-a85d-28d2cbd38bf1","block_type":"box","text":"securities markets in Saudi Arabia are subject to greater risks associated with market volatility, lower market","page_number":85,"box":{"x":69,"y":695,"width":776,"height":11}},{"id":"74c4544a-a7f1-40a0-ac28-f6ec00544eea","block_type":"box","text":"capitalization, lower trading volume, illiquidity, inflation, greater price fluctuations, uncer tainty regarding the existence","page_number":85,"box":{"x":69,"y":710,"width":836,"height":11}},{"id":"31c06da1-e1fb-4738-b64f-97d3fcff6bfe","block_type":"box","text":"of trading markets, governmental control and heavy regulation of labor and industry. Shares of cer tain Saudi Arabian","page_number":85,"box":{"x":69,"y":725,"width":830,"height":11}},{"id":"48cc121d-e32c-47a7-ac05-18c3e6adbd62","block_type":"box","text":"companies tend to trade less frequently than those of companies on exchanges in more developed markets. Such","page_number":85,"box":{"x":69,"y":740,"width":813,"height":11}},{"id":"6811ffbb-7f79-4d24-a3b1-b8a1f8e87517","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":85,"box":{"x":70,"y":755,"width":822,"height":11}},{"id":"0f895614-141e-47b9-98b5-59abcb37c3a1","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":85,"box":{"x":68,"y":770,"width":837,"height":12}},{"id":"a5b38143-d882-4dae-b005-d42e7a63fc15","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":85,"box":{"x":69,"y":785,"width":826,"height":12}},{"id":"30c206f1-46c2-4fb0-adf9-998b0a5ed274","block_type":"box","text":"typically the case for investment managers.","page_number":85,"box":{"x":68,"y":801,"width":309,"height":11}},{"id":"9f6c37aa-8ab4-45ef-9726-2fae458210d7","block_type":"box","text":"Although the political situation in Saudi Arabia is largely stable, Saudi Arabia has historically experienced political","page_number":85,"box":{"x":101,"y":823,"width":806,"height":12}},{"id":"bc7f4dc5-661a-4093-a972-f5993ad21c9e","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":85,"box":{"x":70,"y":838,"width":828,"height":12}},{"id":"d0da9279-ea53-4bf6-867d-ba5fb753fdd0","block_type":"box","text":"Middle East region could adversely impact the economy of Saudi Arabia. Instability may be caused by military","page_number":85,"box":{"x":70,"y":853,"width":777,"height":12}},{"id":"c27116c0-7b12-43e2-bb93-3f729b478839","block_type":"box","text":"developments, government interventions in the marketplace, terrorism, extremist attitudes, attempted social or","page_number":85,"box":{"x":69,"y":869,"width":796,"height":11}},{"id":"ad209b78-bbe4-473b-91b3-7a136c21ea09","block_type":"box","text":"political reforms, religious differences, or other factors. Additionally, anti-Western views held by cer tain groups in the","page_number":85,"box":{"x":70,"y":884,"width":830,"height":11}},{"id":"c5c6534d-c5c2-41e8-a914-fd7b1bd060f8","block_type":"box","text":"Middle East may influence government policies regarding foreign investment. Fur ther developments in U.S. relations","page_number":85,"box":{"x":70,"y":899,"width":827,"height":11}},{"id":"9726d1c6-fc15-4bee-9073-416393cc5537","block_type":"box","text":"II-39","page_number":85,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c5d263e2-b394-4823-ab45-6317c93f489b","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":85,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f334c84f-b3e2-403c-bae7-866ce836a32c","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":86,"box":{"x":68,"y":45,"width":764,"height":11}},{"id":"0b458636-6df0-469c-8484-157e9e3d14d3","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":86,"box":{"x":69,"y":60,"width":795,"height":11}},{"id":"a8bb73cf-c4b7-4524-bd3b-c33414e37afc","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":86,"box":{"x":69,"y":75,"width":835,"height":11}},{"id":"4df105f1-b541-41b3-bc87-62b6ab04a33d","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":86,"box":{"x":70,"y":90,"width":829,"height":11}},{"id":"1dfebf1c-d5f8-4458-a2f0-9c21e3d7b84e","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":86,"box":{"x":69,"y":105,"width":815,"height":11}},{"id":"e8f1ec37-5d3a-4106-9364-49de0a8fe8cc","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":86,"box":{"x":69,"y":120,"width":825,"height":12}},{"id":"f8007606-c505-4061-aa16-d6c9864af673","block_type":"box","text":"East region has caused significant disruptions to many industries. Continued political and social unrest in these","page_number":86,"box":{"x":70,"y":135,"width":797,"height":12}},{"id":"24135b57-1bac-4d08-98a9-75070883f705","block_type":"box","text":"areas may negatively affect the value of securities in a Fund’s por tfolio.","page_number":86,"box":{"x":69,"y":150,"width":510,"height":12}},{"id":"ce42271e-b635-44d7-87c8-8aa619d4cf43","block_type":"box","text":"Cer tain issuers located in Saudi Arabia may operate in, or have dealings with, countries subject to sanctions","page_number":86,"box":{"x":102,"y":173,"width":773,"height":11}},{"id":"3ebde50b-1316-4601-ac62-1a7e78e0ef0f","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":86,"box":{"x":69,"y":188,"width":820,"height":12}},{"id":"5c7ddfb7-8a98-4f05-8db1-0ebf03f86e81","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":86,"box":{"x":69,"y":203,"width":787,"height":12}},{"id":"804da99d-1cd7-4172-a682-615412a7257f","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":86,"box":{"x":70,"y":218,"width":837,"height":12}},{"id":"bdff7a78-c874-469a-a347-9516c9788cee","block_type":"box","text":"will be indirectly subject to those risks.","page_number":86,"box":{"x":68,"y":234,"width":277,"height":11}},{"id":"80577e22-76fd-4c30-8e84-b0da4e19228e","block_type":"box","text":"Risks of Investing in Venezuela.","page_number":86,"box":{"x":102,"y":256,"width":223,"height":12}},{"id":"edd340f0-1d4e-4e37-8b98-215cf59545b2","block_type":"box","text":"Investment in Venezuela may subject a Fund to legal, regulatory, political,","page_number":86,"box":{"x":332,"y":257,"width":521,"height":11}},{"id":"0c5133a1-ddef-4119-8fbc-64083ebe9a32","block_type":"box","text":"currency, security, expropriation and/or nationalization of assets and economic risk specific to Venezuela. Venezuela","page_number":86,"box":{"x":69,"y":271,"width":829,"height":12}},{"id":"c42692ae-412c-4a71-838c-3c6df1a2e445","block_type":"box","text":"is extremely well endowed with natural resources, including oil and natural gas, and its economy is heavily dependent","page_number":86,"box":{"x":70,"y":287,"width":837,"height":11}},{"id":"a9d4330a-2e01-46cd-9a95-ba5d96633948","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":86,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"aec348f9-667f-44ea-a547-e0d474c6f1ab","block_type":"box","text":"key trading relationship that disrupts the production or expor t of natural resources will likely negatively affect the","page_number":86,"box":{"x":69,"y":317,"width":804,"height":11}},{"id":"230c44c8-c643-43f0-8ef2-209d445eff5a","block_type":"box","text":"Venezuelan economy. The government continues to control key sectors of the economy, including upstream oil and","page_number":86,"box":{"x":68,"y":332,"width":816,"height":11}},{"id":"65494cae-15fd-4a7a-89cd-924e7112d6e0","block_type":"box","text":"gas production, and has sought to increase its role in key sectors, such as telecommunications and steel.","page_number":86,"box":{"x":68,"y":347,"width":758,"height":11}},{"id":"0a96841f-f535-4ed5-b930-6218e035c376","block_type":"box","text":"Meanwhile, ambiguities in the investment environment remain, such as continued high levels of bureaucracy and","page_number":86,"box":{"x":70,"y":362,"width":803,"height":11}},{"id":"e6f04630-d53b-4f32-a982-7b918579d82a","block_type":"box","text":"corruption, large macroeconomic imbalances, and political and policy uncer tainty. Friction continues between the","page_number":86,"box":{"x":69,"y":377,"width":804,"height":12}},{"id":"63fcd32c-cb00-4ebb-a2f0-7f26b118eaba","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":86,"box":{"x":68,"y":392,"width":822,"height":12}},{"id":"8e0d81fb-3b47-4907-b446-3a4cc62704c1","block_type":"box","text":"and sectoral sanctions, on cer tain Venezuelan individuals and Venezuelan corporate entities, and on the Venezuelan","page_number":86,"box":{"x":69,"y":408,"width":827,"height":10}},{"id":"f1c6a0b5-fd96-4d5b-a7c6-39ba7e7f5f8a","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":86,"box":{"x":68,"y":423,"width":814,"height":11}},{"id":"3bb92c98-a5de-42a3-b4ea-294db3bf298c","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":86,"box":{"x":69,"y":438,"width":787,"height":11}},{"id":"2a2a8011-46d9-4f3b-810d-56d9c64f70c9","block_type":"box","text":"military action and sanctions, may result in the decline of the value and liquidity of Venezuelan securities, a","page_number":86,"box":{"x":69,"y":453,"width":766,"height":11}},{"id":"c373cd39-ecda-4947-8b9a-f066ae426e95","block_type":"box","text":"weakening of the bolivar or other adverse consequences to the Venezuelan economy. These sanctions impair the","page_number":86,"box":{"x":68,"y":468,"width":804,"height":11}},{"id":"788c1125-65bd-4752-825b-879dc4d65ba1","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":86,"box":{"x":69,"y":483,"width":838,"height":11}},{"id":"27ecde5d-6747-42ab-a263-34ff56effd79","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":86,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"0f995d48-8f96-4c29-925a-5e26cdcbd3f9","block_type":"box","text":"impact on a Fund’s investments.","page_number":86,"box":{"x":70,"y":514,"width":230,"height":10}},{"id":"d127e5ea-3b36-41a7-834d-ef4ed263ae61","block_type":"box","text":"Brady Bonds.","page_number":86,"box":{"x":102,"y":536,"width":92,"height":11}},{"id":"5eae2c51-a73c-46a1-ac7a-df651dc4b535","block_type":"box","text":"Cer tain Funds may invest in Brady Bonds. A Fund’s emerging market debt securities may include","page_number":86,"box":{"x":201,"y":536,"width":689,"height":11}},{"id":"679bc0f3-b8e3-4766-aaf1-ad0cedcfefc6","block_type":"box","text":"emerging market governmental debt obligations commonly referred to as Brady Bonds. Brady Bonds are securities","page_number":86,"box":{"x":69,"y":551,"width":815,"height":11}},{"id":"4a68d520-f63d-4f66-9792-015e0fc5896e","block_type":"box","text":"created through the exchange of existing commercial bank loans to sovereign entities for new obligations in","page_number":86,"box":{"x":69,"y":566,"width":766,"height":11}},{"id":"3aa00d47-324c-4a99-a25b-e1394047154e","block_type":"box","text":"connection with debt restructurings under a debt restructuring plan introduced by former U.S. Secretary of the","page_number":86,"box":{"x":69,"y":581,"width":784,"height":12}},{"id":"d85e2360-97e1-42f6-a5cf-eeb4369989f8","block_type":"box","text":"Treasury, Nicholas F. Brady (the “Brady Plan”). Brady Plan debt restructurings have been implemented in a number of","page_number":86,"box":{"x":68,"y":596,"width":837,"height":12}},{"id":"876a4bff-48b3-4cb3-a33f-c9195a80eb93","block_type":"box","text":"countries, including: Argentina, Bolivia, Brazil, Bulgaria, Costa Rica, the Dominican Republic, Ecuador, Jordan, Mexico,","page_number":86,"box":{"x":69,"y":612,"width":839,"height":11}},{"id":"42c0818e-b927-43ef-b077-d94f42167370","block_type":"box","text":"Niger, Nigeria, Panama, Peru, the Philippines, Poland, Uruguay, Venezuela, and Vietnam. Beginning in the early","page_number":86,"box":{"x":70,"y":627,"width":786,"height":11}},{"id":"db6a4aeb-8c67-4589-ad1f-698060a7b21d","block_type":"box","text":"2000s, cer tain countries began retiring their Brady Bonds, including Brazil, Colombia, Mexico, the Philippines, and","page_number":86,"box":{"x":69,"y":642,"width":814,"height":11}},{"id":"b0e3f3f3-9be2-4229-8dda-98a25982c125","block_type":"box","text":"Venezuela.","page_number":86,"box":{"x":68,"y":657,"width":75,"height":9}},{"id":"3e643dbb-6c1d-4062-b1f7-f4e1ac1e4ea5","block_type":"box","text":"Brady Bonds may be collateralized or uncollateralized, are issued in various currencies (primarily the U.S. dollar)","page_number":86,"box":{"x":102,"y":680,"width":798,"height":11}},{"id":"2e5ffc1e-6e8e-4c25-9726-fc1fa9f7e680","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":86,"box":{"x":69,"y":695,"width":780,"height":11}},{"id":"d9639637-bf8d-4e08-b79f-076a121b2493","block_type":"box","text":"Securities. U.S. dollar-denominated, collateralized Brady Bonds, which may be fixed rate par bonds or floating rate","page_number":86,"box":{"x":69,"y":710,"width":812,"height":11}},{"id":"c2ed95de-525a-483b-82be-4f69620ded2b","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":86,"box":{"x":69,"y":725,"width":796,"height":11}},{"id":"39b84bce-d3ea-4e58-baa6-9c9b4ba1b764","block_type":"box","text":"same maturity as the Brady Bonds. Interest payments on these Brady Bonds generally are collateralized on a one","page_number":86,"box":{"x":69,"y":740,"width":812,"height":11}},{"id":"61018ec3-5b51-4352-9768-fa0837d0ed3c","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":86,"box":{"x":68,"y":755,"width":823,"height":11}},{"id":"9591810a-5ca7-49fb-8331-0d22d3fd21c1","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":86,"box":{"x":68,"y":770,"width":833,"height":12}},{"id":"841c8522-d8c5-40f3-9af6-9bc837d646e4","block_type":"box","text":"interest payments based on the applicable interest rate at that time and is adjusted at regular intervals thereafter.","page_number":86,"box":{"x":70,"y":785,"width":816,"height":12}},{"id":"0537cb2e-83cb-4063-8177-4867a828e6e0","block_type":"box","text":"Cer tain Brady Bonds are entitled to “value recovery payments” in cer tain circumstances, which in effect constitute","page_number":86,"box":{"x":69,"y":801,"width":818,"height":11}},{"id":"4d6ce292-c78f-4825-8607-97c076a9ccd4","block_type":"box","text":"supplemental interest payments but generally are not collateralized. Brady Bonds are often viewed as having three or","page_number":86,"box":{"x":69,"y":816,"width":835,"height":11}},{"id":"a87cc418-aeb1-4526-bf54-a9bc9e831bd4","block_type":"box","text":"four valuation components: (i) the collateralized repayment of principal at final maturity; (ii) the collateralized interest","page_number":86,"box":{"x":68,"y":831,"width":832,"height":11}},{"id":"44cc0972-b2f6-4cc2-bc9f-dba608aab746","block_type":"box","text":"payments; (iii) the uncollateralized interest payments; and (iv) any uncollateralized repayment of principal at maturity","page_number":86,"box":{"x":70,"y":846,"width":828,"height":11}},{"id":"05cf8f5c-c896-416d-a5e4-6d7f2aebe3f0","block_type":"box","text":"(the uncollateralized amounts constitute the “residual risk”).","page_number":86,"box":{"x":69,"y":861,"width":430,"height":11}},{"id":"149a7d51-60d3-4c2e-a290-86050811046f","block_type":"box","text":"Brady Bonds involve various risk factors described above associated with investing in foreign securities, including","page_number":86,"box":{"x":102,"y":884,"width":807,"height":11}},{"id":"32f3283b-68b5-4100-b6c3-177e905c4b21","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":86,"box":{"x":68,"y":899,"width":838,"height":11}},{"id":"0519b8c6-5e7a-45ef-a4f3-5cf58f51c16a","block_type":"box","text":"II-40","page_number":86,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c23571da-fdb8-49ce-be63-dadf313ab9de","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":86,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"42a9599b-f532-41c0-b37e-d3e2c3389a3a","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":87,"box":{"x":70,"y":45,"width":819,"height":11}},{"id":"9529ed9c-0b1e-4b86-913e-b6fbfb275dd1","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":87,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"b2d7878c-9c1c-4a34-a2e4-f3909127dbb3","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":87,"box":{"x":68,"y":75,"width":841,"height":11}},{"id":"31cb79ad-653f-4921-b27b-3315cd0fe15f","block_type":"box","text":"loss of interest or principal on any of its holdings.","page_number":87,"box":{"x":70,"y":90,"width":351,"height":11}},{"id":"3b2947d7-e19c-427b-bed8-621748ea018f","block_type":"box","text":"China Investments Risk.","page_number":87,"box":{"x":102,"y":113,"width":171,"height":9}},{"id":"2a662773-54ec-4f14-beee-e568515d0686","block_type":"box","text":"Investments in securities of companies domiciled in the People’s Republic of China (“China” or the “PRC”),","page_number":87,"box":{"x":102,"y":135,"width":763,"height":11}},{"id":"14e92774-6caa-4879-99b4-d9c90efea813","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":87,"box":{"x":70,"y":150,"width":830,"height":12}},{"id":"c6191a0c-c227-4dd2-8d72-dc6954fa1f85","block_type":"box","text":"not typically associated with investing in the U.S. securities markets. Such heightened risks include, among others,","page_number":87,"box":{"x":69,"y":166,"width":821,"height":11}},{"id":"063054bd-18bf-4897-bae0-7c04155ff383","block_type":"box","text":"an authoritarian government, popular unrest associated with demands for improved political, economic and social","page_number":87,"box":{"x":69,"y":181,"width":809,"height":11}},{"id":"82108ded-a44e-4cd7-b661-623e319ca631","block_type":"box","text":"conditions, the impact of regional conflict on the economy and hostile relations with other countries.","page_number":87,"box":{"x":69,"y":196,"width":713,"height":11}},{"id":"9e90a9ac-6416-4237-937d-a6ea3e2f7190","block_type":"box","text":"Military conflicts, either in response to internal social unrest or conflicts with other countries, could disrupt","page_number":87,"box":{"x":102,"y":218,"width":762,"height":12}},{"id":"c71d7ae4-90c7-4fa7-993e-f75daee69766","block_type":"box","text":"economic development. The Chinese economy is vulnerable to the long-running disagreements and religious and","page_number":87,"box":{"x":69,"y":234,"width":800,"height":11}},{"id":"27a88be9-2af9-4177-9ac7-83d6091f7ad0","block_type":"box","text":"nationalist disputes with Tibet and the Xinjiang region. Since 1997, there have been tensions between the Chinese","page_number":87,"box":{"x":69,"y":249,"width":820,"height":11}},{"id":"ae735404-5e94-4705-9e54-7c87efbfc18c","block_type":"box","text":"government and many people in Hong Kong who perceive China as tightening control over Hong Kong’s semi","page_number":87,"box":{"x":68,"y":264,"width":777,"height":11}},{"id":"7ea6fd61-62b9-407f-8c1f-5624a12c6b01","block_type":"box","text":"autonomous liberal political, economic, legal, and social framework. Protests and unrest have increased tensions","page_number":87,"box":{"x":69,"y":279,"width":809,"height":11}},{"id":"8e95d7b0-5a0a-42a0-8d1e-3cab734f4297","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":87,"box":{"x":69,"y":294,"width":805,"height":11}},{"id":"1c5d42cb-4834-4907-b14d-71df1a2a0a82","block_type":"box","text":"Kong may cause uncer tainty in the Hong Kong and Chinese markets. China has a complex territorial dispute","page_number":87,"box":{"x":70,"y":309,"width":770,"height":11}},{"id":"c806b7ba-1cf2-4294-90e7-9d5887d1e06e","block_type":"box","text":"regarding the sovereignty of Taiwan and has made threats of invasion. Taiwan-based companies and individuals are","page_number":87,"box":{"x":69,"y":324,"width":821,"height":12}},{"id":"2f3b7a3b-9c7a-4289-89a5-ae5fe4011003","block_type":"box","text":"significant investors in China. The continuing hostility between China and Taiwan may have an adverse impact on the","page_number":87,"box":{"x":69,"y":339,"width":831,"height":12}},{"id":"0d959102-64a6-4a5d-9cdc-e2fb2d499310","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":87,"box":{"x":68,"y":355,"width":812,"height":11}},{"id":"58e56f36-0c47-4e8d-9f13-3a0930cf649b","block_type":"box","text":"securities or other assets or may otherwise make such investments impracticable or impossible. Any escalation of","page_number":87,"box":{"x":69,"y":370,"width":818,"height":11}},{"id":"887af56b-a155-454f-a450-f11e6d7100e3","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":87,"box":{"x":69,"y":385,"width":769,"height":11}},{"id":"6b76bd53-ec84-4076-8562-32e41bf7fdcc","block_type":"box","text":"investments in both countries and the region. In addition, China has strained international relations with Japan, India,","page_number":87,"box":{"x":70,"y":400,"width":836,"height":11}},{"id":"ca3bbe20-615c-465b-90b5-756e66d2c579","block_type":"box","text":"the Philippines and other neighbors due to territorial disputes, historical animosities and other defense concerns.","page_number":87,"box":{"x":68,"y":415,"width":810,"height":11}},{"id":"515da2a9-eeda-4a51-8046-f951ad6a8bb5","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":87,"box":{"x":70,"y":430,"width":813,"height":11}},{"id":"dfc68705-35f3-45d0-8900-5d2ad873df5e","block_type":"box","text":"military conflict. Additionally, China is alleged to have par ticipated in state-sponsored cyberattacks against foreign","page_number":87,"box":{"x":69,"y":445,"width":811,"height":12}},{"id":"833c548d-f8f4-4714-8c5c-e94c767c910d","block_type":"box","text":"companies and foreign governments. Actual and threatened responses to such activity and strained international","page_number":87,"box":{"x":69,"y":460,"width":804,"height":12}},{"id":"8768cd35-72b6-4c48-8b52-e9730d7c31fa","block_type":"box","text":"relations, including purchasing restrictions, sanctions, tariffs or cyberattacks on the Chinese government or Chinese","page_number":87,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"06cac236-4e11-4319-90ab-a0b0287c454a","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":87,"box":{"x":69,"y":491,"width":825,"height":11}},{"id":"4699a527-6c6e-44b4-b47c-b37b8d79f2bf","block_type":"box","text":"affected by military events on the Korean peninsula or internal instability within Nor th Korea. These situations may","page_number":87,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"c8a95f09-89d7-46c3-b0dd-73a021396c72","block_type":"box","text":"cause uncer tainty in the Chinese market and may adversely affect the per formance of the Chinese economy.","page_number":87,"box":{"x":69,"y":521,"width":776,"height":11}},{"id":"2f45e9fc-c4a3-43d2-a315-1e6b55588edc","block_type":"box","text":"The Chinese government has implemented economic reforms in order to liberalize trade policy, promote foreign","page_number":87,"box":{"x":101,"y":543,"width":792,"height":12}},{"id":"7a0df679-f50b-4e4b-925c-c3e6f9fefa13","block_type":"box","text":"investment in the economy, reduce government control of the economy and develop market mechanisms. However,","page_number":87,"box":{"x":70,"y":559,"width":818,"height":11}},{"id":"34fb0d36-2101-4c88-8a0c-a2fed4c128e8","block_type":"box","text":"the Chinese government still exercises substantial influence over many aspects of the private sector and may own or","page_number":87,"box":{"x":68,"y":574,"width":835,"height":11}},{"id":"4bfb3356-e101-44f3-b3e8-a0902f490fa5","block_type":"box","text":"control many companies. Chinese companies, such as those in the financial services or technology sectors, and","page_number":87,"box":{"x":69,"y":589,"width":802,"height":11}},{"id":"5c27e36e-31bf-4995-ad4f-8eacca885a5f","block_type":"box","text":"potentially other sectors in the future, are subject to the risk that Chinese authorities can intervene in their","page_number":87,"box":{"x":70,"y":604,"width":763,"height":11}},{"id":"200e61ba-ca46-4ba8-95a9-b954edfd9b4b","block_type":"box","text":"operations and structure. The Chinese government continues to maintain a major role in economic policymaking and","page_number":87,"box":{"x":69,"y":619,"width":829,"height":11}},{"id":"5ad87bf6-1e01-4878-baa9-c34db7f29694","block_type":"box","text":"investing in China involves risk of loss due to expropriation, nationalization, confiscation of assets and proper ty or","page_number":87,"box":{"x":70,"y":634,"width":813,"height":12}},{"id":"0810bf4e-aec1-46bd-be89-820284c0e89a","block_type":"box","text":"the imposition of restrictions on foreign investments and on repatriation of capital invested.","page_number":87,"box":{"x":68,"y":649,"width":653,"height":12}},{"id":"1eeea97a-02ae-4cb8-b873-74f586d55ac7","block_type":"box","text":"The Chinese government may intervene in the Chinese financial markets, such as by the imposition of trading","page_number":87,"box":{"x":101,"y":672,"width":783,"height":11}},{"id":"27b73cfc-0b0a-44c4-a431-292681520664","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":87,"box":{"x":69,"y":687,"width":805,"height":11}},{"id":"a283544e-b19b-4bbf-becf-bf43a535842c","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":87,"box":{"x":69,"y":702,"width":827,"height":11}},{"id":"b64f7266-0951-430a-9e76-28abf6f5147f","block_type":"box","text":"Funds. Fur thermore, such market interventions may have a negative impact on market sentiment which may in turn","page_number":87,"box":{"x":70,"y":718,"width":821,"height":11}},{"id":"feff528b-01e7-4144-86a9-8b458524ca5d","block_type":"box","text":"affect the per formance of the securities markets and as a result the per formance of the Funds.","page_number":87,"box":{"x":69,"y":732,"width":683,"height":11}},{"id":"b1d8c585-2a5e-4e35-a552-884241d6fb6b","block_type":"box","text":"In addition, there is less regulation and monitoring of Chinese securities markets and the activities of investors,","page_number":87,"box":{"x":102,"y":755,"width":797,"height":11}},{"id":"d43c9779-d864-4c0d-b4e5-3b08493d733e","block_type":"box","text":"brokers and other par ticipants than in the United States. Accordingly, issuers of securities in China, including","page_number":87,"box":{"x":69,"y":770,"width":779,"height":12}},{"id":"5790eeb5-7b92-4efb-86a7-7819628b0256","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":87,"box":{"x":69,"y":785,"width":822,"height":12}},{"id":"6abce3f1-2afc-4f39-b787-9bac144afa62","block_type":"box","text":"issuers with respect to such matters as insider trading rules, tender offer regulation, accounting standards or auditor","page_number":87,"box":{"x":70,"y":801,"width":836,"height":11}},{"id":"1f410b33-3457-4d76-ada6-827c08399418","block_type":"box","text":"oversight, stockholder proxy requirements and the requirements mandating timely and accurate disclosure of","page_number":87,"box":{"x":69,"y":816,"width":778,"height":11}},{"id":"e9588507-36fa-490b-8917-fd85225ff277","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":87,"box":{"x":70,"y":831,"width":803,"height":11}},{"id":"15c6d44b-0258-4ddb-ba98-6b35f067a34b","block_type":"box","text":"trading volatility, difficulty in the settlement and recording of transactions and difficulty in interpreting and applying","page_number":87,"box":{"x":68,"y":846,"width":816,"height":11}},{"id":"536ed381-9e05-426c-a4dd-b20e629a9f75","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":87,"box":{"x":68,"y":861,"width":816,"height":11}},{"id":"9d144d84-6408-4463-b6d0-70fd99fe82ca","block_type":"box","text":"settlement and administration of securities in China that is customary in more developed markets. In par ticular,","page_number":87,"box":{"x":69,"y":876,"width":798,"height":11}},{"id":"e97bcc75-eea1-4cdd-9b31-f8c89695f0a4","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":87,"box":{"x":68,"y":891,"width":826,"height":12}},{"id":"c14b7b5e-3d1b-4bae-ae00-27160e9ecbd3","block_type":"box","text":"sub-custodian.","page_number":87,"box":{"x":69,"y":907,"width":102,"height":8}},{"id":"e4da898d-5fbf-4a66-9f8e-944d099fcaa4","block_type":"box","text":"II-41","page_number":87,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"15ef792d-c612-445f-b5a0-0d97bb6dd455","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":87,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c6e9c547-8be2-4b39-8a6a-37761179badb","block_type":"box","text":"There may be significant obstacles to obtaining information necessary for investigations into or litigation against","page_number":88,"box":{"x":101,"y":45,"width":801,"height":11}},{"id":"7495eb49-5658-464d-8a24-e10f21bbefd7","block_type":"box","text":"Chinese companies, and shareholders may have limited legal remedies. The Funds do not select investments based","page_number":88,"box":{"x":69,"y":60,"width":829,"height":11}},{"id":"a137d55d-40b5-47dc-b779-246372adc64d","block_type":"box","text":"on investor protection considerations.","page_number":88,"box":{"x":69,"y":75,"width":268,"height":11}},{"id":"7a586424-7307-425a-bf95-426db7c4a535","block_type":"box","text":"The Chinese government historically took positions that prevented the U.S. Public Company Accounting Oversight","page_number":88,"box":{"x":101,"y":98,"width":806,"height":11}},{"id":"7f5dd250-f51c-4672-b008-5419966d9a89","block_type":"box","text":"Board (“PCAOB”) from inspecting the audit work and practices of accounting firms in mainland China and Hong Kong","page_number":88,"box":{"x":70,"y":113,"width":829,"height":11}},{"id":"34034538-a922-45a7-b647-4d07223d9392","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":88,"box":{"x":68,"y":128,"width":810,"height":11}},{"id":"f720a8e0-1174-4e96-97f0-bdbf982a3861","block_type":"box","text":"Protocol with the China Securities Regulatory Commission and the Ministry of Finance of the PRC, which marked the","page_number":88,"box":{"x":69,"y":143,"width":829,"height":11}},{"id":"46ad1cfe-1f4b-49c9-b3a3-56b99034d709","block_type":"box","text":"first step toward opening access for the PCAOB to inspect and investigate registered public accounting firms","page_number":88,"box":{"x":68,"y":158,"width":774,"height":11}},{"id":"67c7154f-d2a6-4e8d-8216-5d249a5387e8","block_type":"box","text":"headquar tered in mainland China and Hong Kong completely in accordance with U.S. law. However, as this","page_number":88,"box":{"x":69,"y":173,"width":760,"height":11}},{"id":"cffbdb92-1f6e-4788-8a2d-139f1c2ec29c","block_type":"box","text":"development is relatively recent, the implementation of the Statement of Protocol remains to be tested. Audits","page_number":88,"box":{"x":69,"y":188,"width":788,"height":11}},{"id":"29fa0556-7254-4a3f-ab9b-8eea17130747","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":88,"box":{"x":70,"y":203,"width":822,"height":12}},{"id":"6f8b2519-568d-42be-8b60-434644d547f2","block_type":"box","text":"per formed by firms subject to PCAOB inspection. Accordingly, information about the Chinese securities in which the","page_number":88,"box":{"x":70,"y":218,"width":821,"height":12}},{"id":"845f7997-2b24-470e-9fa6-2895802b12d1","block_type":"box","text":"Funds invest may be less reliable or complete. Under amendments to the Sarbanes-Oxley Act enacted in December","page_number":88,"box":{"x":70,"y":234,"width":820,"height":11}},{"id":"fe145bfa-77f4-4f21-852b-b5efa76abb3f","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":88,"box":{"x":69,"y":249,"width":805,"height":11}},{"id":"070d5281-f1cb-43e8-ac6f-6658bf1273e8","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":88,"box":{"x":69,"y":264,"width":816,"height":11}},{"id":"a1c53721-d7e1-43e0-8e7e-5c7c80366233","block_type":"box","text":"accounting firm.","page_number":88,"box":{"x":69,"y":279,"width":112,"height":11}},{"id":"bcd6e2dc-e53e-42fe-bf97-10080fdcd738","block_type":"box","text":"The Renminbi (“RMB”) is currently not a freely conver tible currency and is subject to foreign exchange control","page_number":88,"box":{"x":101,"y":302,"width":780,"height":11}},{"id":"1fd93fe9-a47d-4b75-ba42-52251534b440","block_type":"box","text":"policies and repatriation restrictions imposed by the Chinese government. The imposition of currency controls may","page_number":88,"box":{"x":70,"y":317,"width":815,"height":11}},{"id":"fdf70cce-b907-4ef4-832d-dfae9b804022","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":88,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"e1ad99c2-316a-43f8-a03c-3014b9992d22","block_type":"box","text":"be adversely affected by delays in, or a refusal to grant, any required governmental approval for repatriation of","page_number":88,"box":{"x":69,"y":347,"width":787,"height":11}},{"id":"ab2e1d70-672b-44f7-ba18-aa9c36da3718","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":88,"box":{"x":69,"y":362,"width":837,"height":11}},{"id":"df99e2a9-edab-43fd-8f37-37128a2df8a0","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":88,"box":{"x":68,"y":377,"width":825,"height":11}},{"id":"bb3d3e76-4183-4056-92ae-6f98e527c808","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":88,"box":{"x":69,"y":392,"width":828,"height":12}},{"id":"ffcc6c9c-3827-4cd0-b7f9-b3b76352f007","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":88,"box":{"x":70,"y":408,"width":812,"height":11}},{"id":"61ae676a-273f-4c22-97f6-d1303b4f4aab","block_type":"box","text":"connection with conversions between the two separate types of RMB, the onshore RMB (“CNY”) and the offshore","page_number":88,"box":{"x":69,"y":423,"width":808,"height":11}},{"id":"278e824a-e871-4733-a60f-839288cb126a","block_type":"box","text":"RMB (“CNH”).","page_number":88,"box":{"x":70,"y":438,"width":97,"height":11}},{"id":"f3ba3969-24b2-4151-b7fc-cddf74a77426","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":88,"box":{"x":102,"y":460,"width":802,"height":12}},{"id":"e22b1837-fd2b-46de-a1d8-c939ddf94867","block_type":"box","text":"result of foreign ownership restrictions. In a VIE structure, a Chinese operating company establishes a shell company","page_number":88,"box":{"x":69,"y":475,"width":837,"height":12}},{"id":"8fa8ef66-9d79-4cfb-a9c3-753924d11241","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":88,"box":{"x":70,"y":491,"width":822,"height":11}},{"id":"025aa0d3-a292-402a-adbb-7370b666d85f","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":88,"box":{"x":70,"y":506,"width":775,"height":11}},{"id":"7e1563d2-a21f-4927-9eff-d4fdd9ceb616","block_type":"box","text":"company directly or indirectly enters into contracts with the Chinese operating company under Chinese law. These","page_number":88,"box":{"x":69,"y":521,"width":809,"height":11}},{"id":"2eda2339-6e47-4715-80bb-618f9ff79df1","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":88,"box":{"x":69,"y":536,"width":803,"height":11}},{"id":"097429b3-3d38-42ba-bb07-7129e86b1cba","block_type":"box","text":"represent equity ownership in the operating company.","page_number":88,"box":{"x":69,"y":551,"width":380,"height":11}},{"id":"170999c7-371f-4705-bd79-a7f3e40fd59b","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":88,"box":{"x":101,"y":574,"width":801,"height":11}},{"id":"b8e14e67-4e50-4a67-b77d-e46e8e5ead8b","block_type":"box","text":"formally recognized under Chinese law. The Chinese government has provided guidance to and placed restrictions on","page_number":88,"box":{"x":68,"y":589,"width":833,"height":11}},{"id":"2a510b29-8e09-4722-a98d-06af881a23ce","block_type":"box","text":"Chinese-based companies raising capital offshore, including through VIEs. In 2023, the China Securities Regulatory","page_number":88,"box":{"x":69,"y":604,"width":825,"height":11}},{"id":"bc1c9f3e-10fe-4ae9-8987-f60108cc0365","block_type":"box","text":"Commission (“CSRC”) released new rules that permit the use of VIE structures, provided they abide by Chinese laws","page_number":88,"box":{"x":69,"y":619,"width":832,"height":11}},{"id":"93ac5122-ccdd-4c53-a1ff-34a6c7a30754","block_type":"box","text":"and register with the CSRC. The rules, however, may cause Chinese companies to undergo greater scrutiny and add","page_number":88,"box":{"x":69,"y":634,"width":826,"height":12}},{"id":"b230e69b-7b66-4ff0-9122-beb1c07d7009","block_type":"box","text":"costs to VIE structures. Intervention, rulemaking or guidance by the Chinese government with respect to VIE","page_number":88,"box":{"x":69,"y":649,"width":770,"height":12}},{"id":"6d97ebbe-74ea-4b03-a8ff-ddb8fbec50da","block_type":"box","text":"structures or the non-enforcement of VIE-related contractual rights could significantly affect the operating company’s","page_number":88,"box":{"x":69,"y":664,"width":829,"height":12}},{"id":"069fca00-5361-4c0e-b67a-2abe93abd86b","block_type":"box","text":"business in China, the enforceability of the U.S.-listed shell company’s contractual arrangements with the Chinese","page_number":88,"box":{"x":69,"y":680,"width":815,"height":11}},{"id":"f4763932-7f3f-4177-9162-9bf1c8d7fb09","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":88,"box":{"x":69,"y":695,"width":815,"height":11}},{"id":"5c76d8ec-be39-4014-93ab-295ccc52324f","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":88,"box":{"x":69,"y":710,"width":802,"height":11}},{"id":"aa4a0675-683c-4b64-b3ed-060e845f7b2d","block_type":"box","text":"ineffective. In addition to the risk of government intervention, investments through a VIE structure are subject to the","page_number":88,"box":{"x":70,"y":725,"width":828,"height":11}},{"id":"6bd833bd-61a3-442c-84e5-31e7d8e8c895","block_type":"box","text":"risk that the China-based company (or its officers, directors, or Chinese equity owners) may breach those contractual","page_number":88,"box":{"x":69,"y":740,"width":833,"height":11}},{"id":"b023c750-84c6-4e4e-b482-19bfecaee083","block_type":"box","text":"arrangements, or Chinese law changes in a way that adversely affects the enforceability of these arrangements, or","page_number":88,"box":{"x":69,"y":755,"width":819,"height":11}},{"id":"9c5b533f-e517-4b14-b801-49f01babfaa3","block_type":"box","text":"those contracts are otherwise not enforceable under Chinese law, in which case the Fund may suffer significant","page_number":88,"box":{"x":68,"y":770,"width":798,"height":12}},{"id":"9b4bbcfe-a596-4219-857d-1a6a5e5ef294","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":88,"box":{"x":70,"y":785,"width":833,"height":12}},{"id":"2b22e500-0e04-43e2-a8f5-cb2fea18139f","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":88,"box":{"x":69,"y":801,"width":837,"height":11}},{"id":"026d331d-9316-41f2-83cd-ba218d304db7","block_type":"box","text":"generally or with respect to specific industries, could result in significant, and possibly permanent and/or total,","page_number":88,"box":{"x":68,"y":816,"width":792,"height":11}},{"id":"efbd1f23-37b5-4a5d-96ba-55cfea26a158","block_type":"box","text":"losses to a Fund.","page_number":88,"box":{"x":70,"y":831,"width":120,"height":9}},{"id":"620f2a13-2c0f-4144-ac0e-08c76371270a","block_type":"box","text":"While the Chinese economy has experienced past periods of rapid growth, there is no assurance that such","page_number":88,"box":{"x":101,"y":853,"width":760,"height":12}},{"id":"2fb27f24-d026-4aa8-bb12-5d6875c2f356","block_type":"box","text":"growth rates will recur. Other economic challenges for China include indebtedness, weak consumer demand, trade","page_number":88,"box":{"x":68,"y":869,"width":815,"height":11}},{"id":"235a9a36-a48e-443e-9e35-dd2eb32f11f4","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":88,"box":{"x":68,"y":884,"width":837,"height":11}},{"id":"5db1b717-2770-4a98-ad22-9a5e4fc4ae56","block_type":"box","text":"excess industrial capacity and overall approach to economic management. China’s economy is heavily dependent on","page_number":88,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"82d6f59f-7f68-4781-851b-74d0ee7573dd","block_type":"box","text":"II-42","page_number":88,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"3d47c6b1-1cfa-45c2-b6f9-566bf3313b70","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":88,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ba88ceec-61dc-489e-a687-fab6270b8e12","block_type":"box","text":"expor t growth. Reduction in spending on Chinese products and services, supply chain diversification, institution of","page_number":89,"box":{"x":69,"y":45,"width":815,"height":11}},{"id":"4ba5d823-2b9e-4dc6-8d14-575622c53184","block_type":"box","text":"additional tariffs, sanctions or other trade barriers (including as a result of heightened trade tensions between China","page_number":89,"box":{"x":69,"y":60,"width":832,"height":11}},{"id":"8c532a1a-f9af-4736-9bd2-edd6d210321c","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":89,"box":{"x":69,"y":75,"width":765,"height":11}},{"id":"de6fc863-92ad-40dc-a50b-0188ed0fd425","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":89,"box":{"x":69,"y":90,"width":833,"height":11}},{"id":"fcc4b03d-eae7-4b67-8ecc-fd9af1d5e1a1","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":89,"box":{"x":70,"y":105,"width":816,"height":11}},{"id":"960741c6-3637-41de-9832-aac8c2c2a95b","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":89,"box":{"x":69,"y":120,"width":824,"height":12}},{"id":"7ea2bc8f-9586-49a9-919c-149b823eced7","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":89,"box":{"x":69,"y":135,"width":825,"height":12}},{"id":"1a12cdd9-a778-41e6-ae50-5fbdb283b192","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":89,"box":{"x":69,"y":150,"width":798,"height":11}},{"id":"ba06c33b-9ba9-46e4-bd8f-8f5bfc84cdcd","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":89,"box":{"x":68,"y":166,"width":805,"height":11}},{"id":"e798ea26-5d09-4341-9739-35171f4f566a","block_type":"box","text":"Such restrictions may have unanticipated and adverse effects on the Chinese economy and companies. Any action","page_number":89,"box":{"x":69,"y":181,"width":817,"height":11}},{"id":"dad3d520-b835-4252-910a-b27cbca77621","block_type":"box","text":"that targets Chinese financial markets or securities exchanges could inter fere with orderly trading, delay settlement","page_number":89,"box":{"x":68,"y":196,"width":825,"height":11}},{"id":"c029628b-ac4f-4b8f-a808-4ea47d79b7c5","block_type":"box","text":"or cause market disruptions. Cer tain companies may be subject to economic or trade restrictions (but not investment","page_number":89,"box":{"x":69,"y":211,"width":839,"height":11}},{"id":"eceb6681-7ef6-43aa-9fe5-072333032b61","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":89,"box":{"x":69,"y":226,"width":815,"height":11}},{"id":"66f44745-d25e-4cf4-be30-452d3d71562f","block_type":"box","text":"such government. So long as these restrictions do not include restrictions on investments, the Fund may invest in","page_number":89,"box":{"x":69,"y":241,"width":812,"height":11}},{"id":"88beaeeb-57a6-4bd5-8809-d789f3d1bb11","block_type":"box","text":"such companies.","page_number":89,"box":{"x":69,"y":257,"width":119,"height":10}},{"id":"ee2ad0d4-d05a-4bcd-b138-cca2f38796a3","block_type":"box","text":"The tax laws and regulations in the PRC are subject to change, including the issuance of authoritative guidance","page_number":89,"box":{"x":101,"y":279,"width":792,"height":11}},{"id":"6b31db84-c6e3-413e-b589-a813497566ce","block_type":"box","text":"or enforcement, possibly with retroactive effect. The interpretation, applicability and enforcement of such laws by PRC","page_number":89,"box":{"x":69,"y":294,"width":840,"height":11}},{"id":"3a272445-9bbe-417b-8fd0-857d3cc6e27f","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":89,"box":{"x":68,"y":309,"width":815,"height":11}},{"id":"6023a186-d2a0-417b-89c2-ce66f20a1b57","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":89,"box":{"x":69,"y":324,"width":823,"height":12}},{"id":"e096c7cd-fcb3-4bf8-a861-98922f7d592d","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":89,"box":{"x":69,"y":340,"width":812,"height":11}},{"id":"2afcbffd-db8e-4602-ba11-52fd109d457e","block_type":"box","text":"addition, the accounting, auditing and financial repor ting standards and practices applicable to Chinese companies","page_number":89,"box":{"x":69,"y":355,"width":821,"height":11}},{"id":"28c57e34-d755-4e01-8d63-b3277784bf5b","block_type":"box","text":"may be less rigorous, and may result in significant differences between financial statements prepared in accordance","page_number":89,"box":{"x":69,"y":370,"width":832,"height":11}},{"id":"5a506a75-4ef5-4e00-90c3-7604e4b026a6","block_type":"box","text":"with PRC accounting standards and practice and those prepared in accordance with international accounting","page_number":89,"box":{"x":68,"y":385,"width":773,"height":11}},{"id":"2a5f97d4-1b90-4a38-887b-91c7b16f38f8","block_type":"box","text":"standards.","page_number":89,"box":{"x":69,"y":400,"width":74,"height":9}},{"id":"fc231d70-7f02-4d91-a89e-71b20277214b","block_type":"box","text":"From time to time and in recent years, China has experienced outbreaks of infectious illnesses and the country","page_number":89,"box":{"x":102,"y":423,"width":794,"height":11}},{"id":"70e2af26-9f8d-4b2c-b030-862c9a070b25","block_type":"box","text":"may be subject to other public health threats, infectious illnesses, diseases or similar issues in the future. Any","page_number":89,"box":{"x":69,"y":438,"width":792,"height":11}},{"id":"3bd941b3-a176-4f3c-8fc2-cb9237b569b4","block_type":"box","text":"spread of an infectious illness, public health threat or similar issue could reduce consumer demand or economic","page_number":89,"box":{"x":69,"y":453,"width":803,"height":11}},{"id":"905b9012-75bc-4b34-91b7-e0ee33b1d1e4","block_type":"box","text":"output, result in market closures, travel restrictions or quarantines, and generally have a significant impact on the","page_number":89,"box":{"x":69,"y":468,"width":811,"height":11}},{"id":"85d531f2-4647-4cb0-a917-b25898d55c8d","block_type":"box","text":"Chinese economy, which in turn could adversely affect a Fund’s investments.","page_number":89,"box":{"x":69,"y":483,"width":548,"height":11}},{"id":"4ea1a08a-1877-4824-b2e0-628f0f39295d","block_type":"box","text":"Risk of Investing through Stock Connect.","page_number":89,"box":{"x":102,"y":506,"width":288,"height":11}},{"id":"384c7b09-9457-4273-99b8-c37ab167a09c","block_type":"box","text":"General","page_number":89,"box":{"x":102,"y":529,"width":55,"height":8}},{"id":"0b7c49c1-82b9-42a7-a27e-d4415f00bfe4","block_type":"box","text":". China A-shares are equity securities of companies domiciled in China that trade on Chinese stock","page_number":89,"box":{"x":158,"y":528,"width":704,"height":12}},{"id":"1286df69-a029-41ab-8aaf-fc2d969ea261","block_type":"box","text":"exchanges such as the Shanghai Stock Exchange (“SSE”), the Shenzhen Stock Exchange (“SZSE”) and the Beijing","page_number":89,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"2b54c173-17e0-41ec-9681-12f8389b7eb8","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":89,"box":{"x":69,"y":559,"width":815,"height":11}},{"id":"2d4355ea-da0e-414c-94d3-6fe5e7020f91","block_type":"box","text":"than pursuant to available exceptions, such as through a qualified foreign investor approved pursuant to the relevant","page_number":89,"box":{"x":68,"y":574,"width":833,"height":11}},{"id":"f5531ded-a18f-4b21-aa5d-82f632ac547b","block_type":"box","text":"mainland China laws and regulations as may be promulgated and/or amended from time to time (“QFI”).","page_number":89,"box":{"x":69,"y":589,"width":744,"height":11}},{"id":"56c44581-4241-4d20-97b6-a56620b9e167","block_type":"box","text":"Investment in eligible exchange traded funds and A-shares listed and traded on the SSE or SZSE (“Stock","page_number":89,"box":{"x":102,"y":612,"width":745,"height":11}},{"id":"b80ee336-c97e-4189-a409-e1463b79c29f","block_type":"box","text":"Connect Securities”) is also permitted through the Shanghai-Hong Kong Stock Connect program or the Shenzhen","page_number":89,"box":{"x":69,"y":627,"width":807,"height":11}},{"id":"412b69f8-3e0b-4fa7-965e-12d8e685d9a4","block_type":"box","text":"Hong Kong Stock Connect program, as applicable (each, a “Stock Connect” and collectively, “Stock Connects”). Each","page_number":89,"box":{"x":70,"y":642,"width":834,"height":11}},{"id":"4a9c037d-6db0-4124-a700-22ec199122b1","block_type":"box","text":"Stock Connect is a securities trading and clearing links program established by The Stock Exchange of Hong Kong","page_number":89,"box":{"x":69,"y":657,"width":812,"height":11}},{"id":"5ab24756-599e-4d8b-9d83-af34ff3648ed","block_type":"box","text":"Limited (“SEHK”), the Hong Kong Securities Clearing Company Limited (“HKSCC”), the SSE or SZSE, as applicable,","page_number":89,"box":{"x":70,"y":672,"width":819,"height":11}},{"id":"2d8e6811-f38f-448d-820a-1212326d69ef","block_type":"box","text":"and China Securities Depository and Clearing Corporation Limited (“CSDCC”) that aims to provide mutual stock","page_number":89,"box":{"x":69,"y":687,"width":793,"height":11}},{"id":"c055e47e-f5b3-4e93-b3a7-d9b2cee3ff41","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":89,"box":{"x":69,"y":702,"width":818,"height":12}},{"id":"b453f4de-644f-46b4-9881-98b398607f3f","block_type":"box","text":"through their local securities brokers. Under Stock Connects, a Fund’s trading of Stock Connect Securities listed on","page_number":89,"box":{"x":68,"y":717,"width":824,"height":12}},{"id":"19317738-3a58-4bd3-85d5-98097c374b20","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":89,"box":{"x":68,"y":732,"width":827,"height":12}},{"id":"4cf7d259-9dd6-4c06-b404-2d4b937f8201","block_type":"box","text":"company established by SEHK.","page_number":89,"box":{"x":69,"y":748,"width":219,"height":11}},{"id":"61a72171-afad-4de7-9d19-02f3edc344b6","block_type":"box","text":"Although no individual investment quotas or licensing requirements apply to investors in Stock Connect, trading","page_number":89,"box":{"x":101,"y":770,"width":794,"height":12}},{"id":"aaa42df7-5308-4dfa-9994-674565d47164","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":89,"box":{"x":68,"y":786,"width":839,"height":11}},{"id":"23b758d6-437b-4a12-b4c8-9aca7634785c","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":89,"box":{"x":69,"y":801,"width":779,"height":11}},{"id":"57f6d5ff-227e-46ab-9630-86156de74458","block_type":"box","text":"permitted to sell their Stock Connect Securities regardless of the quota). These limitations may restrict a Fund from","page_number":89,"box":{"x":70,"y":816,"width":824,"height":11}},{"id":"5f7c772b-2113-457d-b2bc-8876a9d5b667","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":89,"box":{"x":70,"y":831,"width":827,"height":11}},{"id":"daeef1b8-c235-46b0-a550-2e4789341eea","block_type":"box","text":"investment strategy. Investment quotas are also subject to change. Investment in Stock Connect Securities through a","page_number":89,"box":{"x":70,"y":846,"width":837,"height":11}},{"id":"e041dabf-c9fa-40e6-be55-8fb39d64e54d","block_type":"box","text":"Stock Connect is subject to trading, clearance and settlement procedures that could pose risks to a Fund. Stock","page_number":89,"box":{"x":69,"y":861,"width":802,"height":11}},{"id":"f0c0a6b9-06c1-4ba1-b805-0958ced95078","block_type":"box","text":"Connect Securities purchased through Stock Connects generally may not be sold or otherwise transferred other than","page_number":89,"box":{"x":69,"y":876,"width":831,"height":11}},{"id":"22b3fd19-9b7c-4618-9c51-59dfd7f2042d","block_type":"box","text":"through Stock Connects in accordance with applicable rules. For example, the PRC regulations require that in order","page_number":89,"box":{"x":68,"y":891,"width":821,"height":12}},{"id":"e5247465-eb6d-4960-a0e4-14b0cffba773","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":89,"box":{"x":68,"y":906,"width":829,"height":12}},{"id":"e4816417-69e6-44eb-bb7e-f1c2c74a2488","block_type":"box","text":"II-43","page_number":89,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"027e884d-642e-4ada-b209-26f4987fc47a","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":89,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ef113647-879f-42a2-89b5-b6e7678b8edb","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":90,"box":{"x":69,"y":45,"width":797,"height":11}},{"id":"0bccfb18-48c9-49bf-84ca-9eba8e81e902","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":90,"box":{"x":69,"y":60,"width":820,"height":11}},{"id":"13705939-dd0e-4f4d-9393-4b249dfd0883","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":90,"box":{"x":69,"y":75,"width":820,"height":11}},{"id":"2d082be1-4f5c-4f70-a0e7-78c482f113b6","block_type":"box","text":"(“SZSE Securities”) of its par ticipants (","page_number":90,"box":{"x":69,"y":90,"width":278,"height":11}},{"id":"1844b19a-0f2f-457d-a607-3f1715ca23fe","block_type":"box","text":"i.e.","page_number":90,"box":{"x":349,"y":90,"width":21,"height":9}},{"id":"c5009d45-400f-4ee7-bfde-47b9f551f270","block_type":"box","text":", stock brokers) to ensure that this requirement is satisfied. While shares","page_number":90,"box":{"x":372,"y":90,"width":524,"height":11}},{"id":"768ced9e-8c39-4eb2-bd75-ee0cad38c319","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":90,"box":{"x":69,"y":105,"width":815,"height":11}},{"id":"82c81743-41ee-4ce3-8a59-b384d73936c8","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":90,"box":{"x":69,"y":120,"width":810,"height":12}},{"id":"8f7e5899-e98e-4e9d-bc90-965e2f5f010e","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":90,"box":{"x":69,"y":135,"width":834,"height":12}},{"id":"a1614610-1c40-4437-b6bf-c874ed2535e9","block_type":"box","text":"services are available in both markets on the corresponding settlement days. Therefore, an investment in Stock","page_number":90,"box":{"x":69,"y":150,"width":799,"height":12}},{"id":"c56f8798-a95f-45d2-a670-bd4337e9c946","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":90,"box":{"x":69,"y":166,"width":797,"height":11}},{"id":"29a19fe7-2a85-48cb-8c62-d89adf8faba1","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":90,"box":{"x":69,"y":181,"width":818,"height":11}},{"id":"707c1f66-203a-400d-b5cd-4c32b071aebd","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":90,"box":{"x":68,"y":196,"width":820,"height":11}},{"id":"403ca9cc-d219-444c-b6bf-7c2b111e35d8","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":90,"box":{"x":69,"y":211,"width":836,"height":11}},{"id":"878ecc48-616b-459b-b9e8-2ee7517de4fc","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":90,"box":{"x":69,"y":226,"width":811,"height":11}},{"id":"1b490b46-1bef-4b8c-8d02-1326fc2bfd5b","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":90,"box":{"x":68,"y":241,"width":815,"height":11}},{"id":"4243cc3c-8c64-4d80-87c2-f14774232e9d","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":90,"box":{"x":69,"y":256,"width":824,"height":11}},{"id":"3f970340-a4fc-4db0-a91a-ca3e57dc0ed2","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":90,"box":{"x":70,"y":271,"width":777,"height":12}},{"id":"19182b69-e595-4870-9358-646813a1028e","block_type":"box","text":"investments in Stock Connect Securities. A Fund may also incur conversion costs.","page_number":90,"box":{"x":70,"y":287,"width":582,"height":11}},{"id":"e64bc99f-74a2-4291-b346-ad64a688ab1e","block_type":"box","text":"Stock Connect Securities held through the nominee structure under a Stock Connect will be held through HKSCC","page_number":90,"box":{"x":102,"y":309,"width":802,"height":11}},{"id":"7e255a4b-0d1a-4db2-8831-bdad1f4235b1","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":90,"box":{"x":69,"y":324,"width":784,"height":12}},{"id":"2728f7d4-32d6-4a14-99bb-f3274cf3ddfb","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":90,"box":{"x":69,"y":339,"width":837,"height":12}},{"id":"c56637b2-8032-46ef-bef0-0dd475d50824","block_type":"box","text":"clear definition of, and distinction between, legal ownership and beneficial ownership under the PRC laws and there","page_number":90,"box":{"x":69,"y":355,"width":822,"height":11}},{"id":"453fcde2-e45a-4874-bbc9-b930a0f4895c","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":90,"box":{"x":69,"y":370,"width":802,"height":11}},{"id":"a5a0506d-2ed2-49c4-a4d3-c735864babd6","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":90,"box":{"x":69,"y":385,"width":805,"height":11}},{"id":"b8a42b8c-1fbf-4182-982d-e341eca14498","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":90,"box":{"x":70,"y":400,"width":807,"height":11}},{"id":"071611bb-b17a-4528-959c-223d2f970cc8","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":90,"box":{"x":69,"y":415,"width":805,"height":11}},{"id":"aae8fab7-3360-4d3a-82fd-b719df62afdc","block_type":"box","text":"HKSCC available for general distribution to its creditors. Notwithstanding the fact that HKSCC does not claim","page_number":90,"box":{"x":70,"y":430,"width":774,"height":11}},{"id":"0d6b10a8-da4c-4a47-902c-c27053d1b628","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":90,"box":{"x":70,"y":445,"width":816,"height":11}},{"id":"3674b6b7-fd6e-4dab-b29c-9e3010c270cf","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":90,"box":{"x":69,"y":460,"width":808,"height":12}},{"id":"f25be590-8ba2-496e-9b1c-94c39529f31d","block_type":"box","text":"when it handles corporate actions in respect of such SSE Securities or SZSE Securities. HKSCC monitors the","page_number":90,"box":{"x":68,"y":475,"width":779,"height":11}},{"id":"b542ec9a-879b-4696-a914-5eadaf044f0e","block_type":"box","text":"corporate actions affecting SSE Securities and SZSE Securities and keeps par ticipants of Central Clearing and","page_number":90,"box":{"x":69,"y":491,"width":788,"height":11}},{"id":"cb814eb1-0f99-4e05-9be1-9d26c3e79d06","block_type":"box","text":"Settlement System (“CCASS”) informed of all such corporate actions that require CCASS par ticipants to take steps in","page_number":90,"box":{"x":69,"y":506,"width":839,"height":11}},{"id":"091e4863-d857-476e-89b3-7aefd4f0677c","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":90,"box":{"x":69,"y":521,"width":811,"height":11}},{"id":"ceb1fc51-0c7d-4316-96f7-9c652de85441","block_type":"box","text":"HKSCC through par ticipants of CCASS. All voting instructions from CCASS par ticipants will be consolidated by","page_number":90,"box":{"x":70,"y":536,"width":783,"height":11}},{"id":"d1bfbc92-05d7-413d-bd92-e50f814d7225","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":90,"box":{"x":70,"y":551,"width":826,"height":11}},{"id":"8fe7fe71-e9ac-44b6-9cfe-bcdeb40f2871","block_type":"box","text":"result, a Fund may suffer difficulties or delays in enforcing its rights in SSE Securities or SZSE Securities.","page_number":90,"box":{"x":69,"y":566,"width":752,"height":11}},{"id":"0530f04e-4cd1-4425-acad-bde8d51060a0","block_type":"box","text":"Hong Kong’s Investor Compensation Fund is established to pay compensation to investors of any nationality who","page_number":90,"box":{"x":102,"y":589,"width":804,"height":11}},{"id":"f262c505-06fc-4690-92cc-1d018894c6e3","block_type":"box","text":"suffer pecuniary losses as a result of default of a licensed intermediary or authorized financial institution in relation","page_number":90,"box":{"x":69,"y":604,"width":826,"height":11}},{"id":"d48433fd-9f0b-4d83-9b70-c3da59400775","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":90,"box":{"x":68,"y":619,"width":769,"height":11}},{"id":"a4be8468-336d-405a-89ec-8bfd867f6b62","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":90,"box":{"x":70,"y":634,"width":809,"height":11}},{"id":"ecd02f93-6265-4a3a-a444-fa68c4e9842e","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":90,"box":{"x":69,"y":649,"width":801,"height":12}},{"id":"afe8449b-8488-4e9b-bdd1-6f3e4fa728de","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":90,"box":{"x":68,"y":664,"width":822,"height":12}},{"id":"b9f3f3a5-e89c-4548-951b-a47eb073c716","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":90,"box":{"x":69,"y":680,"width":829,"height":11}},{"id":"2197101d-df00-4a72-92c7-70d7dac8f89d","block_type":"box","text":"PRC.","page_number":90,"box":{"x":69,"y":695,"width":32,"height":9}},{"id":"f232c6e1-986c-44b5-a3fb-46e71d03e059","block_type":"box","text":"Market par ticipants are able to par ticipate in Stock Connects subject to meeting cer tain information technology","page_number":90,"box":{"x":102,"y":717,"width":796,"height":12}},{"id":"c4b1b669-7821-4ee9-8a43-e07280d3362c","block_type":"box","text":"capability, risk management and other requirements as may be specified by the relevant exchange and/or clearing","page_number":90,"box":{"x":69,"y":732,"width":815,"height":12}},{"id":"9f596fda-394e-40c1-9247-15d94c1a270c","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":90,"box":{"x":69,"y":748,"width":822,"height":11}},{"id":"a1401215-2b87-4016-ba04-ed625d7c154e","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":90,"box":{"x":68,"y":763,"width":818,"height":11}},{"id":"9555cf78-5255-4f61-94b3-69e9d67cdf00","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":90,"box":{"x":70,"y":778,"width":813,"height":11}},{"id":"96a2e9e0-a11d-4ca8-8bd8-02a3b2217f52","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":90,"box":{"x":69,"y":793,"width":827,"height":11}},{"id":"ac63f577-b3f4-4cce-aeb9-953efe392859","block_type":"box","text":"function properly, trading in Stock Connect Securities through Stock Connects could be disrupted.","page_number":90,"box":{"x":68,"y":808,"width":695,"height":11}},{"id":"16a92322-ecc2-4fb9-bf15-413709ff0f04","block_type":"box","text":"The Shanghai-Hong Kong Stock Connect program launched in November 2014 and the Shenzhen-Hong Kong","page_number":90,"box":{"x":101,"y":831,"width":772,"height":11}},{"id":"0116984b-3194-4a27-a7d3-50491094b6f7","block_type":"box","text":"Stock Connect program launched in December 2016. Each program does not have an extensive operating history.","page_number":90,"box":{"x":69,"y":846,"width":810,"height":11}},{"id":"343d7eaf-615d-45f4-b369-5b6e16c66ed9","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":90,"box":{"x":70,"y":861,"width":798,"height":11}},{"id":"b6b3d706-9643-483f-be1d-b30fde785642","block_type":"box","text":"Hong Kong in connection with operations, legal enforcement and cross-border trades under Stock Connects. In","page_number":90,"box":{"x":70,"y":876,"width":786,"height":11}},{"id":"d5e618ea-041e-4a4c-9d45-adf2fff29059","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":90,"box":{"x":69,"y":891,"width":821,"height":11}},{"id":"b946a10e-fa97-43a1-83cd-fb99f305c4c0","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":90,"box":{"x":69,"y":906,"width":819,"height":12}},{"id":"5b6abb42-4f6b-4775-9d73-15823508b628","block_type":"box","text":"II-44","page_number":90,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a3a9142c-4e21-46d8-a84e-3ffdc986161c","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":90,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ebc80210-ff03-4320-9d63-a4f4921d606f","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":91,"box":{"x":69,"y":45,"width":823,"height":11}},{"id":"0b98b7db-e6fb-4731-ad10-65c2d845971f","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":91,"box":{"x":68,"y":60,"width":814,"height":11}},{"id":"e6eacefb-b6bd-45b6-a494-540c04005bab","block_type":"box","text":"achieve its investment objective may be adversely affected. In addition, a Fund’s investments in Stock Connect","page_number":91,"box":{"x":69,"y":75,"width":793,"height":11}},{"id":"1c70d8c5-6a5f-422e-9073-aa558a9317fa","block_type":"box","text":"Securities through Stock Connects are generally subject to Chinese securities regulations and listing rules, among","page_number":91,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"a8d45205-991c-4f94-9376-a8f6c8e2e589","block_type":"box","text":"other restrictions. Fur ther, different fees, costs and taxes are imposed on foreign investors acquiring Stock Connect","page_number":91,"box":{"x":69,"y":105,"width":828,"height":11}},{"id":"3e436b9c-9894-4713-9c2b-39b81f211d4b","block_type":"box","text":"Securities through Stock Connects, and these fees, costs and taxes may be higher than comparable fees, costs and","page_number":91,"box":{"x":69,"y":120,"width":831,"height":12}},{"id":"d3e59e51-afa0-48da-a325-a29a90d957e0","block_type":"box","text":"taxes imposed on owners of other securities providing similar investment exposure.","page_number":91,"box":{"x":68,"y":135,"width":596,"height":12}},{"id":"c150e3f1-5ec2-4f93-8615-4575514b47ce","block_type":"box","text":"Suspension Risk.","page_number":91,"box":{"x":102,"y":158,"width":122,"height":11}},{"id":"9be389da-a671-4902-b8f0-92eb7c4e1a58","block_type":"box","text":"SSE Securities and SZSE Securities may only be bought from, or sold to, a Fund at times when","page_number":91,"box":{"x":231,"y":158,"width":675,"height":11}},{"id":"fba05cb5-4a17-451e-b6e5-ff51dcab19a6","block_type":"box","text":"the relevant SSE Securities and SZSE Securities may be sold or purchased on the relevant Chinese stock exchange.","page_number":91,"box":{"x":68,"y":173,"width":829,"height":11}},{"id":"bcca43de-1699-402a-a16d-c2fe5cca45be","block_type":"box","text":"The SSE Securities and SZSE Securities markets have a higher propensity for trading suspensions than many other","page_number":91,"box":{"x":68,"y":188,"width":823,"height":12}},{"id":"53352399-8fc7-464a-96d1-cd2ca3193d8f","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":91,"box":{"x":68,"y":203,"width":831,"height":12}},{"id":"949fe60a-f44c-47a0-a698-3244611e88fa","block_type":"box","text":"SZSE Securities purchased on the Stock Connects if necessary for ensuring an orderly and fair market and ensuring","page_number":91,"box":{"x":69,"y":218,"width":828,"height":12}},{"id":"fe9bf94d-ef23-49ce-95b0-77d271968494","block_type":"box","text":"that risks are managed prudently. Consent from the relevant regulator would be sought before a suspension of","page_number":91,"box":{"x":68,"y":234,"width":791,"height":11}},{"id":"5a85d111-c8bc-4411-8244-e352af0e9650","block_type":"box","text":"Nor thbound trading is triggered. The relevant PRC government authority may also impose “circuit breakers” and other","page_number":91,"box":{"x":70,"y":249,"width":837,"height":11}},{"id":"f8f14350-78c5-44b4-8bcf-eb9f9d37047c","block_type":"box","text":"measures to halt or suspend Nor thbound trading. Where a suspension in the Nor thbound trading through Stock","page_number":91,"box":{"x":69,"y":264,"width":796,"height":11}},{"id":"8acf0d75-5e2a-449c-94ef-87222cfc43cc","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":91,"box":{"x":69,"y":279,"width":820,"height":11}},{"id":"12f8647e-3818-4262-bf9f-78c7d8f8536b","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":91,"box":{"x":69,"y":294,"width":829,"height":11}},{"id":"bdeadfe4-859f-4d3f-ba3b-51654af2b1ae","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":91,"box":{"x":69,"y":309,"width":778,"height":11}},{"id":"d35b4817-2b97-47b3-9f04-1b5af018bfb2","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":91,"box":{"x":69,"y":324,"width":815,"height":12}},{"id":"26ac98f1-9a03-4246-a20d-109295be7bc9","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":91,"box":{"x":69,"y":340,"width":833,"height":11}},{"id":"71291ea1-c5ae-41e3-ab73-ceedddefa2c8","block_type":"box","text":"exist for any par ticular SSE Security or SZSE Security or for any par ticular time.","page_number":91,"box":{"x":69,"y":355,"width":563,"height":11}},{"id":"ff53b1c5-9cde-43e5-9d4a-167cf0e64cbf","block_type":"box","text":"Risk of Investing in the China Interbank Bond Market through Bond Connect.","page_number":91,"box":{"x":102,"y":377,"width":542,"height":12}},{"id":"b747745c-a9db-4bb6-bcd4-6714e5f60a68","block_type":"box","text":"A Fund may invest directly in the","page_number":91,"box":{"x":650,"y":377,"width":230,"height":11}},{"id":"658ad667-0404-4e03-856b-24ce2ac0fd10","block_type":"box","text":"domestic bond market in the PRC (the “China Interbank Bond Market”) through the nor thbound trading of Bond","page_number":91,"box":{"x":69,"y":392,"width":791,"height":12}},{"id":"6e4423b6-480f-4e66-8405-45048249355c","block_type":"box","text":"Connect (“Bond Connect”). Bond Connect is an initiative launched in July 2017 for mutual bond market access","page_number":91,"box":{"x":69,"y":407,"width":790,"height":12}},{"id":"7b6b3c0f-cf93-422b-8cbb-4e69f395e48e","block_type":"box","text":"between the PRC and Hong Kong, established by the China Foreign Exchange Trade System & National Interbank","page_number":91,"box":{"x":69,"y":423,"width":803,"height":11}},{"id":"9d52b7f6-dd57-428e-983d-d872bf579436","block_type":"box","text":"Funding Centre (“CFETS”), China Central Depository & Clearing Co., Ltd (“CDCC”), Shanghai Clearing House (“SCH”),","page_number":91,"box":{"x":70,"y":438,"width":832,"height":11}},{"id":"e62ea121-1894-4fc6-9ed6-3f871f7f9cf0","block_type":"box","text":"Hong Kong Exchanges and Clearing Limited (“HKEX”) and Central Moneymarkets Unit (“CMU”). Under the prevailing","page_number":91,"box":{"x":70,"y":453,"width":821,"height":11}},{"id":"5d739049-eec4-493b-82f5-8b21c2d9c9e2","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":91,"box":{"x":69,"y":468,"width":825,"height":11}},{"id":"a77b604e-a03d-4434-b45e-cae7d2f72156","block_type":"box","text":"Bond Market through Bond Connect. Eligible foreign investors may submit trade requests for bonds circulated in the","page_number":91,"box":{"x":70,"y":483,"width":825,"height":11}},{"id":"d89956ae-8186-4cf0-8b72-f0848d31521f","block_type":"box","text":"China Interbank Bond Market through offshore electronic bond trading platforms (such as Tradeweb), which will in","page_number":91,"box":{"x":69,"y":498,"width":809,"height":11}},{"id":"af923cc9-3d0a-489a-9dac-4ecbbc2ebec4","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":91,"box":{"x":68,"y":513,"width":786,"height":11}},{"id":"ce0516ba-ef28-48a1-b743-145ed8c9b7e8","block_type":"box","text":"approved onshore dealers (including market makers and others engaged in the market making business) in the PRC.","page_number":91,"box":{"x":69,"y":529,"width":830,"height":11}},{"id":"580ff94f-8756-41b7-b126-361d991277a8","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":91,"box":{"x":68,"y":543,"width":788,"height":12}},{"id":"92f1f6b0-7fc5-4c19-94bb-af3e3305578b","block_type":"box","text":"responses to those eligible foreign investors through the same offshore electronic bond trading platforms. Once the","page_number":91,"box":{"x":69,"y":559,"width":827,"height":11}},{"id":"6cf3b4dc-7012-444b-9e14-2eff6cd31087","block_type":"box","text":"eligible foreign investor accepts the quotation, the trade is concluded on CFETS.","page_number":91,"box":{"x":69,"y":574,"width":570,"height":11}},{"id":"809bc782-6b77-439e-b8a7-828dc4a94752","block_type":"box","text":"The settlement and custody of bonds traded in the China Interbank Bond Market under Bond Connect will be","page_number":91,"box":{"x":101,"y":596,"width":773,"height":12}},{"id":"6e518333-754e-420d-8fa0-5f394c32eaca","block_type":"box","text":"effected through the settlement and custody link between CMU, as an offshore custody agent, and CDCC and SCH,","page_number":91,"box":{"x":69,"y":612,"width":823,"height":11}},{"id":"1c1f2a0a-bb71-4a30-a674-cb73a0b696dd","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":91,"box":{"x":69,"y":627,"width":832,"height":11}},{"id":"1575c075-9014-4403-abeb-ff2e8e3469a4","block_type":"box","text":"settlement of confirmed trades onshore and CMU will process bond settlement instructions from CMU members on","page_number":91,"box":{"x":69,"y":642,"width":822,"height":11}},{"id":"cd8c8339-180c-4b6e-8b5d-e84efce09906","block_type":"box","text":"behalf of eligible foreign investors in accordance with its relevant rules. Since the introduction in August 2018 of","page_number":91,"box":{"x":69,"y":657,"width":804,"height":11}},{"id":"86106957-0dba-412f-856c-95304bc0ffb8","block_type":"box","text":"delivery versus payment (DVP) settlement in respect of Bond Connect, the movement of cash and securities is","page_number":91,"box":{"x":69,"y":672,"width":787,"height":11}},{"id":"432271b1-9470-4039-89bc-11deb5be5fee","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":91,"box":{"x":69,"y":687,"width":788,"height":11}},{"id":"f1da6c18-5980-4090-8b17-8f5bb2492dda","block_type":"box","text":"offshore custody agent recognized by the Hong Kong Monetary Authority, will open omnibus nominee accounts with","page_number":91,"box":{"x":69,"y":702,"width":820,"height":12}},{"id":"b84676d1-de46-40a5-9fcf-907a3c7fd9a8","block_type":"box","text":"the onshore custody agent recognized by the People’s Bank of China (","page_number":91,"box":{"x":68,"y":717,"width":500,"height":12}},{"id":"7d46cf82-2f02-4584-9ec1-6e84eab856fc","block_type":"box","text":"i.e.","page_number":91,"box":{"x":570,"y":718,"width":20,"height":8}},{"id":"964a615e-bc86-4134-affe-8cf6f312d365","block_type":"box","text":", CDCC and SCH). All bonds traded by","page_number":91,"box":{"x":593,"y":718,"width":267,"height":11}},{"id":"23e20c6e-b307-4290-8be9-072e712e83a3","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":91,"box":{"x":69,"y":732,"width":832,"height":12}},{"id":"0eec104c-ce88-411c-977b-e6f0816467bc","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":91,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"a24f67eb-7c33-45f2-b319-25503560970b","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":91,"box":{"x":69,"y":763,"width":822,"height":11}},{"id":"ba3308b6-aa24-4897-b419-14e0c7b4535e","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":91,"box":{"x":68,"y":778,"width":822,"height":11}},{"id":"1e477609-e0cd-4afa-8f7c-8f7573221986","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":91,"box":{"x":69,"y":793,"width":793,"height":11}},{"id":"891d5a8c-c413-46e3-a749-7b1a6a117034","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":91,"box":{"x":68,"y":808,"width":802,"height":11}},{"id":"02129b77-7628-4a9e-8c83-71d5489c345e","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":91,"box":{"x":70,"y":823,"width":812,"height":12}},{"id":"a5fc6897-8941-46bd-8952-928e52764e2e","block_type":"box","text":"par ties.","page_number":91,"box":{"x":70,"y":839,"width":52,"height":10}},{"id":"f7392656-547b-4a39-8b0a-f1c5f8fdb3d9","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":91,"box":{"x":101,"y":861,"width":799,"height":11}},{"id":"a8276dd7-29d4-4660-9efb-509ec61b1212","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":91,"box":{"x":70,"y":876,"width":785,"height":11}},{"id":"7eff30b7-8bc8-4f08-b6c9-6c6381996bf2","block_type":"box","text":"distinction between, legal ownership and beneficial ownership under PRC law and there have been few cases","page_number":91,"box":{"x":69,"y":891,"width":776,"height":12}},{"id":"6517c594-2b57-4432-8b21-584fe243e329","block_type":"box","text":"II-45","page_number":91,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f5aa5c7f-3ddf-457c-aca6-0e46fe115bc8","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":91,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0947939e-deda-485c-ab18-3f3261881e6b","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":92,"box":{"x":70,"y":45,"width":830,"height":11}},{"id":"b9c9cba7-0646-4e1d-bbd1-076e6113b967","block_type":"box","text":"and interests of a Fund under PRC law are also uncer tain.","page_number":92,"box":{"x":69,"y":60,"width":412,"height":9}},{"id":"3812cdf9-4802-42cc-ba86-44acb843c155","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":92,"box":{"x":102,"y":82,"width":793,"height":12}},{"id":"1e5af7ad-1c31-442b-961b-90d075c40ff5","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":92,"box":{"x":70,"y":98,"width":832,"height":11}},{"id":"f6034261-b19f-44b5-b651-661eb258909c","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":92,"box":{"x":69,"y":113,"width":821,"height":11}},{"id":"d6afc40c-ec5c-408b-8ffb-4d429229a4c5","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":92,"box":{"x":69,"y":128,"width":836,"height":11}},{"id":"e4d76158-b997-4936-9458-7a24eec9fc04","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":92,"box":{"x":68,"y":143,"width":798,"height":11}},{"id":"17bfc915-4e88-4231-bdf8-a3f22d71acfd","block_type":"box","text":"Fund’s ability to acquire or dispose of such securities at their expected prices.","page_number":92,"box":{"x":70,"y":158,"width":556,"height":11}},{"id":"09c171de-b08a-4ab6-9493-ed64bf0d4d0b","block_type":"box","text":"Investing in the China Interbank Bond Market through Bond Connect is also subject to regulatory risks. The","page_number":92,"box":{"x":102,"y":181,"width":762,"height":11}},{"id":"1521f119-ba64-4145-9bd9-19435c559d97","block_type":"box","text":"relevant rules and regulations are subject to change, which may have potential retrospective effect, and there can be","page_number":92,"box":{"x":69,"y":196,"width":835,"height":11}},{"id":"7ffe4bfa-5e2d-47df-86c3-d8f1370fb687","block_type":"box","text":"no assurance that Bond Connect will not be discontinued or abolished. Fur thermore, the securities regimes and legal","page_number":92,"box":{"x":69,"y":211,"width":835,"height":11}},{"id":"f62ee6d2-1611-473d-82cc-d53b7de2f64c","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":92,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"387efbbe-9ddb-43aa-8994-466cd71f5288","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":92,"box":{"x":68,"y":241,"width":840,"height":11}},{"id":"462ad672-1517-4ab7-84df-1fdbae5b7c39","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":92,"box":{"x":68,"y":256,"width":826,"height":11}},{"id":"f6f6781c-d557-43d0-8201-3cd7fc3ece8b","block_type":"box","text":"to achieve its investment objective will be negatively affected and, after exhausting other trading alternatives, the","page_number":92,"box":{"x":68,"y":271,"width":808,"height":12}},{"id":"50283722-1d9f-4b3f-8616-7afd3b803cfa","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":92,"box":{"x":70,"y":286,"width":826,"height":12}},{"id":"ec69eaf1-0123-48fb-9194-f68c5625274d","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":92,"box":{"x":69,"y":302,"width":789,"height":11}},{"id":"e1da8a83-ce4b-4cf0-94a1-b5a790d4a9aa","block_type":"box","text":"per formance.","page_number":92,"box":{"x":70,"y":317,"width":93,"height":11}},{"id":"310fc19d-f2d4-4300-aeff-9147c5a429b9","block_type":"box","text":"Trading through Bond Connect is per formed through newly developed trading platforms and operational systems.","page_number":92,"box":{"x":101,"y":339,"width":803,"height":12}},{"id":"b3d3b0bc-02fd-466c-9220-6dd103e801a5","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":92,"box":{"x":68,"y":355,"width":776,"height":11}},{"id":"88982f37-9dcd-454f-90f6-eb1290c759b4","block_type":"box","text":"developments in the market. In the event that the relevant systems fail to function properly, trading through Bond","page_number":92,"box":{"x":69,"y":370,"width":806,"height":11}},{"id":"b8158bdb-1f0b-4f79-8ed2-494c83d58d81","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":92,"box":{"x":69,"y":385,"width":791,"height":11}},{"id":"1db50c3b-0874-4416-87cc-d622141bc694","block_type":"box","text":"strategy) may therefore be adversely affected. In addition, where a Fund invests in the China Interbank Bond Market","page_number":92,"box":{"x":69,"y":400,"width":827,"height":11}},{"id":"b355629d-114e-4842-a9af-b751cdf297f5","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":92,"box":{"x":68,"y":415,"width":827,"height":11}},{"id":"81d1885d-53a4-4669-88d7-0b43b4e6be20","block_type":"box","text":"Bond Connect trades are settled in Chinese currency, the RMB, which is currently restricted and not freely","page_number":92,"box":{"x":102,"y":438,"width":755,"height":11}},{"id":"734e90b1-12e6-44bd-83d7-ccf0b4aa8281","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":92,"box":{"x":69,"y":453,"width":830,"height":11}},{"id":"e946b162-9ad6-4566-98ab-e11c7577b5f5","block_type":"box","text":"timely access to a reliable supply of RMB.","page_number":92,"box":{"x":68,"y":468,"width":298,"height":11}},{"id":"bb8af6b5-3d25-43f5-bfab-985e08e78e5b","block_type":"box","text":"Tax Risk – Withholding Income Tax Risk","page_number":92,"box":{"x":103,"y":491,"width":277,"height":11}},{"id":"d349162f-4b88-42ad-8643-f8e76e9dccf8","block_type":"box","text":".","page_number":92,"box":{"x":381,"y":498,"width":2,"height":2}},{"id":"740dc6e4-3726-4df0-931c-d59ad745b730","block_type":"box","text":"According to PRC tax regulations, a 10% withholding income tax is imposed on PRC sourced dividends and","page_number":92,"box":{"x":101,"y":513,"width":758,"height":12}},{"id":"59bf99d6-7170-43a2-9a8e-ab95a1e82304","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":92,"box":{"x":70,"y":528,"width":828,"height":12}},{"id":"408e29e6-c1c5-4922-9f5f-a4e705a7c347","block_type":"box","text":"applicable tax treaty. From a technical perspective, withholding income tax is also applicable to capital gains realized","page_number":92,"box":{"x":69,"y":544,"width":831,"height":11}},{"id":"ead34b56-1217-4432-85c6-a2c077c0cfae","block_type":"box","text":"by foreign investors on the disposal of PRC equity interests.","page_number":92,"box":{"x":69,"y":559,"width":425,"height":11}},{"id":"13b087c2-a494-4a71-9f99-d517e972f516","block_type":"box","text":"There are however cer tain tax exemptions available, some temporary in nature, highlighted below.","page_number":92,"box":{"x":101,"y":582,"width":697,"height":11}},{"id":"6248f470-76bc-4a70-8a77-dd8e75636047","block_type":"box","text":"On November 14, 2014, the Ministry of Finance (“MoF”), China Securities Regulatory Commission and the State","page_number":92,"box":{"x":102,"y":604,"width":803,"height":11}},{"id":"b50fe385-fe63-4898-9714-d8edaa653f6e","block_type":"box","text":"Taxation Administration (“STA”), acting with State Council’s approval, jointly released Circular 79, which temporarily","page_number":92,"box":{"x":68,"y":619,"width":822,"height":11}},{"id":"5206eb11-79fc-462b-8441-71adb0517252","block_type":"box","text":"exempts Qualified Foreign Institutional Investors (“QFIIs”) and Renminbi Qualified Foreign Institutional Investors","page_number":92,"box":{"x":69,"y":634,"width":794,"height":12}},{"id":"ba1937ff-e041-42fb-9c34-93723474c47a","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":92,"box":{"x":69,"y":649,"width":812,"height":12}},{"id":"2b9ae117-f937-4c84-9f7d-ec3c32e74302","block_type":"box","text":"after November 17, 2014. Subsequently, Circulars 81 and 127 were issued to temporarily exempt tax on capital","page_number":92,"box":{"x":69,"y":664,"width":800,"height":12}},{"id":"d0457f03-8467-42e6-a88b-77f632a3b464","block_type":"box","text":"gains derived from trading of equity securities of companies domiciled in the PRC that trade on Chinese stock","page_number":92,"box":{"x":68,"y":680,"width":783,"height":11}},{"id":"a026bc48-f62f-4f1e-aa3a-b379d84cdd74","block_type":"box","text":"exchanges (“A-Shares”) through the Shanghai-Hong Kong Stock Connect program or the Shenzhen-Hong Kong Stock","page_number":92,"box":{"x":69,"y":695,"width":825,"height":11}},{"id":"5aad0d1f-e128-415c-bfb2-aae21f34314b","block_type":"box","text":"Connect program, as applicable (each, a “Stock Connect” and collectively, “Stock Connects”). The duration of the","page_number":92,"box":{"x":69,"y":710,"width":809,"height":11}},{"id":"7870ceb6-13d3-48a2-91aa-93deadb4f3b0","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":92,"box":{"x":68,"y":725,"width":818,"height":11}},{"id":"db058257-bf43-451f-9a95-328d026147dd","block_type":"box","text":"without notice.","page_number":92,"box":{"x":68,"y":740,"width":103,"height":9}},{"id":"ff4646f9-aa07-4f12-8ba8-ff8fd0a7710f","block_type":"box","text":"On November 22, 2018, the MoF and STA jointly issued Circular 108 which states that foreign institutional","page_number":92,"box":{"x":102,"y":763,"width":759,"height":11}},{"id":"834e6d11-c48a-4797-a50e-1aa4e2ae9222","block_type":"box","text":"investors are temporarily exempt from withholding income tax with respect to interest income on bonds derived from","page_number":92,"box":{"x":70,"y":778,"width":827,"height":11}},{"id":"008ecc1a-a1f4-49a1-a5a1-fd9bcbe44b0c","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":92,"box":{"x":68,"y":793,"width":798,"height":10}},{"id":"7d04b75e-af9d-4591-90de-c48d1e09aeb0","block_type":"box","text":"issued Public Notice 34 to extend the temporary exemption from November 7, 2021 to December 31, 2025. On","page_number":92,"box":{"x":70,"y":808,"width":798,"height":11}},{"id":"adfd2251-48ef-4a62-a03c-613862014565","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":92,"box":{"x":69,"y":823,"width":792,"height":12}},{"id":"d449fb9c-718e-46d8-a69e-7125a005cc13","block_type":"box","text":"December 31, 2027.","page_number":92,"box":{"x":70,"y":838,"width":147,"height":11}},{"id":"c4c165dd-90e6-4873-96c5-6f390f09a9e8","block_type":"box","text":"Value Added Tax (“VAT”) Risk —","page_number":92,"box":{"x":103,"y":861,"width":225,"height":11}},{"id":"c8983d0c-46fe-4aa5-91db-eeadf5fe9014","block_type":"box","text":"From May 1, 2016, VAT applies to cer tain income derived by the Fund, including","page_number":92,"box":{"x":333,"y":861,"width":569,"height":11}},{"id":"7716703b-7892-477f-94d3-bd5a0a5b3073","block_type":"box","text":"PRC sourced interest income on non-government bonds and trading gains.","page_number":92,"box":{"x":69,"y":876,"width":528,"height":11}},{"id":"c8aab6ce-1503-48f8-98b1-3112512de3d1","block_type":"box","text":"There are however cer tain tax exemptions available, some temporary in nature, highlighted below.","page_number":92,"box":{"x":101,"y":899,"width":697,"height":11}},{"id":"a4460230-9519-4bbd-99f3-3d3cb88f5821","block_type":"box","text":"II-46","page_number":92,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6f162da2-2775-49d9-a821-f30bb29d5436","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":92,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"69e90f9b-f669-4cc8-ac43-6b9bd0906fb9","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":93,"box":{"x":101,"y":45,"width":789,"height":11}},{"id":"150d638b-91ec-407d-9b25-8c819b7a97b8","block_type":"box","text":"Stock Connects and debt securities traded in the China Interbank Bond Market.","page_number":93,"box":{"x":69,"y":60,"width":565,"height":9}},{"id":"dd53915b-18b0-4d39-8160-8c1fd9eead68","block_type":"box","text":"On November 7, 2018, the MoF and STA jointly issued Circular 108 which states that foreign institutional","page_number":93,"box":{"x":102,"y":82,"width":749,"height":12}},{"id":"267e901e-4d93-4e0b-821e-22877c5064a3","block_type":"box","text":"investors are temporarily exempt from VAT with respect to interest income on bonds derived from the PRC bond","page_number":93,"box":{"x":70,"y":98,"width":791,"height":11}},{"id":"3d8758e4-2673-4e32-b7c2-21dd79bbd700","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":93,"box":{"x":69,"y":113,"width":840,"height":11}},{"id":"357dae4b-3b20-45f7-ba88-9533ececff37","block_type":"box","text":"Notice 34 to extend the temporary exemption from November 7, 2021 to December 31, 2025. However, on","page_number":93,"box":{"x":70,"y":128,"width":766,"height":11}},{"id":"1b487d2b-15ee-47e6-a0df-dc707d1bedc8","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":93,"box":{"x":69,"y":143,"width":826,"height":11}},{"id":"45dc3cdd-78a8-4ba3-9f11-d9b7d5f21215","block_type":"box","text":"interest income derived from treasury bonds, local government bonds and financial bonds issued on or after","page_number":93,"box":{"x":70,"y":158,"width":772,"height":11}},{"id":"996ae22f-4f8f-4a2e-956d-d5191ef52cf6","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":93,"box":{"x":68,"y":173,"width":840,"height":11}},{"id":"40e75b0a-d687-404a-b58d-be9c65731f17","block_type":"box","text":"for foreign institutional investors. This exemption was extended through December 31, 2027.","page_number":93,"box":{"x":68,"y":188,"width":665,"height":12}},{"id":"f5998ec8-65f9-42f4-b89a-6329b6c07371","block_type":"box","text":"Any changes in PRC tax law, future clarifications thereof, and/or subsequent retroactive enforcement by the PRC","page_number":93,"box":{"x":101,"y":211,"width":801,"height":11}},{"id":"0f214eb0-b86c-49fb-880a-5282c9a972d0","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":93,"box":{"x":68,"y":226,"width":821,"height":11}},{"id":"ff190d0e-31fe-471a-91c1-bcc5dce10f64","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":93,"box":{"x":68,"y":241,"width":808,"height":11}},{"id":"033791a0-4254-47c4-bb1c-f799a6f37549","block_type":"box","text":"PRC sourced interest income on non-government bonds received by the Fund without giving any prior notice. If the","page_number":93,"box":{"x":69,"y":256,"width":810,"height":12}},{"id":"a5348886-c989-47d6-ac2b-f9ef4a44a83e","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":93,"box":{"x":68,"y":272,"width":829,"height":11}},{"id":"8a4d33f4-4a78-46f8-aa14-32aa50a9d937","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":93,"box":{"x":69,"y":287,"width":819,"height":11}},{"id":"55be1e0f-d8cb-49da-84d1-34fba67c8856","block_type":"box","text":"advantaged or disadvantaged depending on when the investors purchased and/or sold the shares of the Fund. There","page_number":93,"box":{"x":69,"y":302,"width":833,"height":11}},{"id":"555fe501-35e9-4ebd-8f86-e645dffb6f1d","block_type":"box","text":"will be no retrospective restatement of the Fund’s net asset value.","page_number":93,"box":{"x":68,"y":317,"width":474,"height":11}},{"id":"efac7b98-a1b7-4d21-8a7e-3238f931fbcd","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":93,"box":{"x":102,"y":339,"width":777,"height":12}},{"id":"6e9f918a-39c4-48e9-8462-3b078567e8fc","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":93,"box":{"x":68,"y":355,"width":836,"height":11}},{"id":"b03f6088-a691-4b11-b68d-b6b600c69063","block_type":"box","text":"the PRC in notifications.","page_number":93,"box":{"x":68,"y":370,"width":171,"height":9}},{"id":"ab280f7e-5736-49bc-944f-9914c4a930f4","block_type":"box","text":"Investment in Other Investment Companies.","page_number":93,"box":{"x":102,"y":392,"width":320,"height":11}},{"id":"760681c1-5ff9-4b8f-904e-f1dd40866c61","block_type":"box","text":"Each Fund may, subject to applicable law, invest in other","page_number":93,"box":{"x":429,"y":393,"width":402,"height":11}},{"id":"5020bf35-25c7-447a-bec0-87e519c2093a","block_type":"box","text":"investment companies (including investment companies managed by BlackRock and its affiliates), including money","page_number":93,"box":{"x":70,"y":407,"width":818,"height":12}},{"id":"e018b93d-d4f7-46d0-a796-4d1a52d44d57","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":93,"box":{"x":69,"y":423,"width":797,"height":11}},{"id":"ccbdc13b-3497-4fb2-90a4-1811a4eb867e","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":93,"box":{"x":70,"y":438,"width":822,"height":11}},{"id":"83838235-be39-497a-b374-c64cf1a82549","block_type":"box","text":"in securities of other investment companies (measured at the time of such investment). In addition, under Section","page_number":93,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"bcedcfc6-a602-4899-a564-1756b8e51f44","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":93,"box":{"x":70,"y":468,"width":793,"height":11}},{"id":"b8002891-d12e-4c82-a4c3-ef9d18bfb3f6","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":93,"box":{"x":69,"y":483,"width":796,"height":11}},{"id":"48009c95-d95b-4558-be5a-b862a13c9b22","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":93,"box":{"x":69,"y":498,"width":837,"height":11}},{"id":"a0c9e235-fd36-4cdd-a950-39fb0fb3621a","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":93,"box":{"x":68,"y":513,"width":812,"height":11}},{"id":"b84ad0d5-0971-44c6-8078-5fc020bfe588","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":93,"box":{"x":69,"y":528,"width":829,"height":12}},{"id":"4abd1845-da80-4279-8d0f-096f58fe7f8f","block_type":"box","text":"on investing in other investment companies discussed above, under Section 12(d)(1)(C) of the Investment Company","page_number":93,"box":{"x":69,"y":543,"width":827,"height":12}},{"id":"d3a72229-4d49-4b98-84ae-4768bdce60f9","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":93,"box":{"x":68,"y":559,"width":821,"height":11}},{"id":"a0d02a58-5070-4aef-b62f-4417514ad8e9","block_type":"box","text":"and other BlackRock-advised investment companies to own more than 10% of the total outstanding voting stock of","page_number":93,"box":{"x":69,"y":574,"width":817,"height":11}},{"id":"721dae5f-90ab-402f-8f93-da28a812b4e3","block_type":"box","text":"such closed-end investment company. Pursuant to Section 12(d)(1)(G) of the Investment Company Act, these","page_number":93,"box":{"x":69,"y":589,"width":776,"height":11}},{"id":"5dbcf1b7-59f6-40a2-aaee-2b762c4bf578","block_type":"box","text":"percentage limitations do not apply to investments in affiliated investment companies, including ETFs, subject to","page_number":93,"box":{"x":70,"y":604,"width":802,"height":11}},{"id":"94d71c6a-bc67-4703-ac57-d79ab984b6d7","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":93,"box":{"x":69,"y":619,"width":801,"height":11}},{"id":"903202bf-9c52-4167-87aa-7c3896ba6cef","block_type":"box","text":"invest in shares of money market funds or other investment companies beyond the statutory limits noted above, but","page_number":93,"box":{"x":70,"y":634,"width":829,"height":11}},{"id":"74034761-f31d-4d22-bd5f-842ec81082a6","block_type":"box","text":"subject to cer tain conditions.","page_number":93,"box":{"x":69,"y":650,"width":206,"height":10}},{"id":"04d3e9ee-ea89-4438-bb52-f02c168f2297","block_type":"box","text":"As with other investments, investments in other investment companies are subject to market and selection risk.","page_number":93,"box":{"x":101,"y":672,"width":799,"height":11}},{"id":"154c699f-3646-42a0-9dac-fb7f29f91e0e","block_type":"box","text":"Shares of investment companies, such as closed-end fund investment companies, that trade on an exchange","page_number":93,"box":{"x":102,"y":695,"width":779,"height":11}},{"id":"1c776a02-871a-4f8b-adaf-d447a2a73438","block_type":"box","text":"may at times be acquired at market prices representing premiums to their NAVs. In addition, investment companies","page_number":93,"box":{"x":69,"y":710,"width":824,"height":11}},{"id":"14511b6c-b9fa-4384-aec8-a8697a73eadc","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":93,"box":{"x":69,"y":725,"width":836,"height":11}},{"id":"14dfb1fe-5fbf-4a2d-b61c-c8b53aa770bc","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":93,"box":{"x":68,"y":740,"width":839,"height":11}},{"id":"5e95e0a7-f2d5-4cd5-9be7-aadf893f9b09","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":93,"box":{"x":68,"y":755,"width":806,"height":11}},{"id":"b61cfed2-fd91-472f-8609-5c0c0b690300","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":93,"box":{"x":68,"y":771,"width":810,"height":10}},{"id":"77ee2ab1-0926-4880-9a81-cb643a440159","block_type":"box","text":"loss.","page_number":93,"box":{"x":70,"y":786,"width":31,"height":8}},{"id":"9c78d93f-bbfa-4d85-b5de-6d7013e877eb","block_type":"box","text":"In addition, if a Fund acquires shares in investment companies, including affiliated investment companies,","page_number":93,"box":{"x":102,"y":808,"width":758,"height":11}},{"id":"0130c289-d2c3-44c8-8ad3-ff752b68336f","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":93,"box":{"x":69,"y":823,"width":837,"height":11}},{"id":"c1780a84-06ee-42eb-8392-5eba7f95e7a5","block_type":"box","text":"investment companies. Such expenses, both at the Fund level and acquired investment company level, would include","page_number":93,"box":{"x":70,"y":838,"width":835,"height":11}},{"id":"db221c0a-2a92-456c-b0e5-0877fcb727c5","block_type":"box","text":"management and advisory fees, unless such fees have been waived by BlackRock. Please see the relevant Fund’s","page_number":93,"box":{"x":69,"y":853,"width":816,"height":12}},{"id":"4fcdd00a-a1ea-4d7a-89b0-e8ce0706d478","block_type":"box","text":"Prospectus to determine whether any such management and advisory fees have been waived by BlackRock.","page_number":93,"box":{"x":69,"y":869,"width":768,"height":11}},{"id":"756d66f0-db7c-4392-a031-a5a361c7f30e","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":93,"box":{"x":70,"y":884,"width":807,"height":11}},{"id":"86844654-cdef-429f-b2a6-9d4db8d4e044","block_type":"box","text":"deemed an investment in other investment companies. Pursuant to guidance issued by the staff of the Commission,","page_number":93,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"9d0dde72-6272-4d84-8579-c7266812765c","block_type":"box","text":"II-47","page_number":93,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"686f4dd7-4167-4700-b1e9-de9990aa2172","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":93,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e2829240-004a-4f14-952d-325c9e960d27","block_type":"box","text":"fees and expenses of money market funds used for the investment of cash collateral received in connection with","page_number":94,"box":{"x":68,"y":45,"width":804,"height":11}},{"id":"84fca602-2ab0-4554-a8a0-3bd4548c25d5","block_type":"box","text":"loans of Fund securities are not treated as “acquired fund fees and expenses,” which are fees and expenses","page_number":94,"box":{"x":70,"y":60,"width":778,"height":11}},{"id":"45a67411-c110-40b6-ad8e-fbd38b81d80a","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":94,"box":{"x":69,"y":75,"width":796,"height":11}},{"id":"443685c9-c28f-4da0-a276-adf2e746cdaa","block_type":"box","text":"assets.","page_number":94,"box":{"x":69,"y":91,"width":51,"height":8}},{"id":"20a714e3-7f9a-4d95-b6d2-fde15a28846a","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":94,"box":{"x":101,"y":113,"width":776,"height":11}},{"id":"01ba967c-9aa3-41e9-9d21-df10ace4cb2f","block_type":"box","text":"may be limited. In addition, a fund-of-funds (","page_number":94,"box":{"x":69,"y":128,"width":313,"height":11}},{"id":"e21c30ce-0533-4263-9f4c-3ba2af97f6d7","block_type":"box","text":"e.g.","page_number":94,"box":{"x":384,"y":129,"width":24,"height":10}},{"id":"5e052493-bf56-4aed-ab4a-3aedb3e695ac","block_type":"box","text":", an investment company that seeks to meet its investment objective","page_number":94,"box":{"x":411,"y":128,"width":491,"height":11}},{"id":"d619cba7-298c-49fc-9bd9-debe673519bf","block_type":"box","text":"by investing significantly in other investment companies) may be limited in its ability to purchase underlying funds if","page_number":94,"box":{"x":69,"y":143,"width":823,"height":11}},{"id":"7e9eaf86-1d96-4c2e-bb11-720191f6ff0f","block_type":"box","text":"such underlying funds themselves own shares of underlying funds.","page_number":94,"box":{"x":69,"y":158,"width":472,"height":11}},{"id":"70d737f0-7c76-4b46-941a-138555f78166","block_type":"box","text":"A number of publicly traded closed-end investment companies have been organized to facilitate indirect foreign","page_number":94,"box":{"x":101,"y":181,"width":790,"height":11}},{"id":"49de5275-ec9d-4224-94f6-9b6a0dfc943f","block_type":"box","text":"investment in developing countries, and cer tain of such countries, such as Thailand, South Korea, Chile and Brazil,","page_number":94,"box":{"x":70,"y":196,"width":818,"height":11}},{"id":"c1d750b1-4c08-459c-9e87-cf509a0f6c94","block_type":"box","text":"have specifically authorized such funds. There also are investment oppor tunities in cer tain of such countries in","page_number":94,"box":{"x":69,"y":211,"width":791,"height":11}},{"id":"84aa615d-69fc-4283-8ad3-8897da002850","block_type":"box","text":"pooled vehicles that resemble open-end investment companies. The restrictions on investments in securities of","page_number":94,"box":{"x":70,"y":226,"width":795,"height":11}},{"id":"d8298288-b842-486c-99cc-a5f2e4f9f4a8","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":94,"box":{"x":70,"y":241,"width":807,"height":11}},{"id":"29f78525-2e01-4c81-89ea-286149645dba","block_type":"box","text":"countries.","page_number":94,"box":{"x":69,"y":257,"width":69,"height":8}},{"id":"35178b26-2299-4efb-aceb-e9285f368cb5","block_type":"box","text":"Issuer Insolvency Risk.","page_number":94,"box":{"x":102,"y":279,"width":166,"height":11}},{"id":"4c62ec06-f580-4a74-8832-80a46bd3f7ac","block_type":"box","text":"Cer tain Funds’ potential exposure to financially or operationally troubled issuers involves","page_number":94,"box":{"x":275,"y":279,"width":631,"height":11}},{"id":"e0abb16d-6224-48e1-98f9-dd0cd899691a","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":94,"box":{"x":69,"y":294,"width":832,"height":11}},{"id":"eba851bf-c04e-4098-a887-24ac14c360fe","block_type":"box","text":"an issuer of securities held by a Fund become involved in a bankruptcy proceeding, reorganization or financial","page_number":94,"box":{"x":69,"y":309,"width":781,"height":11}},{"id":"036716fa-a990-43ce-a890-c394de6d0386","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":94,"box":{"x":69,"y":324,"width":797,"height":12}},{"id":"bbb15072-9a21-4f19-99ca-f351f3243bd5","block_type":"box","text":"issuer uncer tain.","page_number":94,"box":{"x":70,"y":340,"width":118,"height":8}},{"id":"3786ace2-a979-4d6b-8dd3-1330731b5a54","block_type":"box","text":"During the period of a bankruptcy proceeding, reorganization or financial restructuring, it is unlikely that a Fund","page_number":94,"box":{"x":102,"y":362,"width":788,"height":11}},{"id":"ee3fe9c8-82f6-4dc5-85f2-0ba2d05af548","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":94,"box":{"x":68,"y":377,"width":827,"height":12}},{"id":"ef3fa9ca-e8c9-4e0f-ab57-ddca69e02988","block_type":"box","text":"to whether the reorganization or restructuring will be completed, and the Fund may bear cer tain extraordinary","page_number":94,"box":{"x":68,"y":393,"width":779,"height":11}},{"id":"5c41c11d-bc43-41db-a78d-3d431f1bee4d","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":94,"box":{"x":69,"y":407,"width":829,"height":12}},{"id":"a9b34e06-fcf4-4e69-9c9f-6cdcf6e84f8f","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":94,"box":{"x":70,"y":423,"width":797,"height":11}},{"id":"baf1379e-0d36-4a6c-8342-11511985f8b0","block_type":"box","text":"eventually be satisfied.","page_number":94,"box":{"x":69,"y":438,"width":162,"height":11}},{"id":"7ae22418-a178-4ae6-8a2e-2f1e98623436","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":94,"box":{"x":102,"y":460,"width":805,"height":12}},{"id":"66c3439a-57a7-435e-8ab0-5b203d505bf3","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":94,"box":{"x":70,"y":476,"width":827,"height":11}},{"id":"2528ae6b-226d-4029-a2bc-ca5a492efdb7","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":94,"box":{"x":69,"y":491,"width":819,"height":11}},{"id":"08a22e90-ea41-42e4-aade-77b589ca9092","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":94,"box":{"x":69,"y":506,"width":802,"height":11}},{"id":"d574534a-ba17-4e3f-8993-803987a6f424","block_type":"box","text":"interest in any collateral challenged, disallowed or subordinated to the claims or security interests of other creditors.","page_number":94,"box":{"x":70,"y":521,"width":830,"height":11}},{"id":"a05984b9-72b6-44c3-af04-87911cd5fdae","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":94,"box":{"x":70,"y":536,"width":805,"height":11}},{"id":"f16baa03-b730-42d4-ac96-34b01f711221","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":94,"box":{"x":70,"y":551,"width":820,"height":11}},{"id":"384e521e-3b92-4e0a-8261-3a3afac19c84","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":94,"box":{"x":70,"y":566,"width":828,"height":11}},{"id":"8cc9a235-2f4f-4502-add8-7e89b483e1ce","block_type":"box","text":"a Fund may receive different securities or other assets, including equity securities. These types of equity securities","page_number":94,"box":{"x":69,"y":581,"width":820,"height":12}},{"id":"8de97333-5463-4199-bdc9-dec89565b009","block_type":"box","text":"include, but are not limited to: common stock; preferred stock (including conver tible preferred stock); bonds, notes","page_number":94,"box":{"x":70,"y":596,"width":820,"height":12}},{"id":"140e8444-4972-49cd-b38f-67411c96abc8","block_type":"box","text":"and debentures conver tible into common or preferred stock; stock purchase warrants and rights; equity interests in","page_number":94,"box":{"x":69,"y":612,"width":824,"height":11}},{"id":"863ef336-ac9c-4050-b140-fb93354c9898","block_type":"box","text":"trusts; and depositary receipts. Equity securities are subject to changes in value, and their value may be more","page_number":94,"box":{"x":68,"y":627,"width":788,"height":11}},{"id":"dc2794cb-1c33-42e0-a36c-c388f9568de2","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":94,"box":{"x":68,"y":642,"width":826,"height":11}},{"id":"7ad541ee-c612-4fe6-8e67-ace1fba6ae4c","block_type":"box","text":"securities because the status of equity holders is subordinate to debtholders in an issuer’s capital structure. The","page_number":94,"box":{"x":69,"y":657,"width":809,"height":11}},{"id":"b9610711-8c60-46cd-8372-2a802544d7b2","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":94,"box":{"x":68,"y":672,"width":809,"height":11}},{"id":"245cd408-70d2-4bd3-9b3c-b41085af51f4","block_type":"box","text":"overall market and economic conditions, or conditions within the issuer’s region or industry, deteriorate.","page_number":94,"box":{"x":69,"y":687,"width":741,"height":11}},{"id":"59a0691b-7cf5-430d-9831-3204dcc06434","block_type":"box","text":"To the extent that a Fund receives other assets in connection with a bankruptcy proceeding, reorganization or","page_number":94,"box":{"x":101,"y":710,"width":780,"height":11}},{"id":"4de9186b-7eea-4787-89e2-ca58f1e24333","block_type":"box","text":"financial restructuring, the Fund may also be subject to additional risks associated with the assets received. One","page_number":94,"box":{"x":68,"y":725,"width":807,"height":11}},{"id":"fad041a9-669d-4f77-8b07-2633bcbdf8f1","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":94,"box":{"x":69,"y":740,"width":795,"height":11}},{"id":"11af2042-8cdf-4385-a30b-25135f5fc1b0","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":94,"box":{"x":68,"y":755,"width":814,"height":11}},{"id":"f6fe2c5b-3676-4ada-a743-9f4a3439757e","block_type":"box","text":"loans to the extent permitted by the Investment Company Act.","page_number":94,"box":{"x":70,"y":770,"width":439,"height":11}},{"id":"90923a13-3925-4c19-a9b2-05c416f1acc7","block_type":"box","text":"Securities or other assets received in a reorganization or restructuring typically entail a higher degree of risk than","page_number":94,"box":{"x":102,"y":793,"width":806,"height":11}},{"id":"567cad6a-1233-40b9-af1e-ac44fb41b809","block_type":"box","text":"investments in securities of issuers that have not undergone a reorganization or restructuring and may be subject to","page_number":94,"box":{"x":70,"y":808,"width":829,"height":11}},{"id":"c6109660-64d2-402e-bb7e-1cb5e2c64adc","block_type":"box","text":"heavy selling or downward pricing pressure after completion of the reorganization or restructuring. The post","page_number":94,"box":{"x":69,"y":823,"width":767,"height":12}},{"id":"5032dd83-e39d-4d6b-b9df-dedcad6a9c66","block_type":"box","text":"reorganization/restructuring assets and securities may also be illiquid and difficult to sell or value. If a Fund","page_number":94,"box":{"x":69,"y":838,"width":771,"height":12}},{"id":"34ad35f7-0208-40a7-923d-91f649bd0ef7","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":94,"box":{"x":70,"y":853,"width":823,"height":12}},{"id":"f6b68f2e-b342-456f-95f3-d6084b161a82","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":94,"box":{"x":70,"y":869,"width":822,"height":11}},{"id":"bb80daf3-ead6-4f15-8577-b7ae304f8bc3","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":94,"box":{"x":69,"y":884,"width":828,"height":11}},{"id":"d2a80a4c-4a5b-41c1-8a33-431f99c9c30e","block_type":"box","text":"that assumed generally by an investor.","page_number":94,"box":{"x":68,"y":899,"width":274,"height":11}},{"id":"1ccbd538-e9ad-46d2-8fca-fc305efc3a74","block_type":"box","text":"II-48","page_number":94,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"42c56ca1-e545-4cca-8b35-fa91de7839c3","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":94,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8f3e5abc-4c6b-4158-866b-9edac4cdbb2e","block_type":"box","text":"Lease Obligations.","page_number":95,"box":{"x":102,"y":45,"width":133,"height":11}},{"id":"2202bb66-9442-47ab-a73a-241df1c052e9","block_type":"box","text":"A Fund may hold par ticipation cer tificates in a lease, an installment purchase contract, or a","page_number":95,"box":{"x":241,"y":45,"width":653,"height":11}},{"id":"404b7355-7e65-448e-8de0-366480c631e0","block_type":"box","text":"conditional sales contract (“lease obligations”). The Manager will monitor the credit standing of each borrower and","page_number":95,"box":{"x":69,"y":60,"width":816,"height":11}},{"id":"9d44aabd-7fd1-42db-9a6a-69be3a07b2ba","block_type":"box","text":"each entity providing credit suppor t and/or a put option relating to lease obligations.","page_number":95,"box":{"x":69,"y":75,"width":602,"height":11}},{"id":"a7033f60-6fab-4bf3-97b2-6b7bf19e5cb7","block_type":"box","text":"Life Settlement Investments.","page_number":95,"box":{"x":102,"y":98,"width":210,"height":9}},{"id":"72f73abf-b4a0-4016-8795-e1eaac7ffb50","block_type":"box","text":"A Fund may invest in life settlements, which are sales to third par ties, such as the","page_number":95,"box":{"x":318,"y":98,"width":589,"height":11}},{"id":"9bab90fa-846a-482a-bf6f-ad2569684784","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":95,"box":{"x":70,"y":113,"width":838,"height":11}},{"id":"2f4bc4e5-83d6-438d-92c0-6f9375109a38","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":95,"box":{"x":70,"y":128,"width":834,"height":11}},{"id":"c9efd5c6-f7b9-4f3f-b391-f62bd2591a22","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":95,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"ec043a18-9bb4-4655-9c14-0fe43d1dc149","block_type":"box","text":"including liquidity risk, credit risk of the insurance company, and inaccurate estimations of life expectancy of the","page_number":95,"box":{"x":70,"y":158,"width":797,"height":11}},{"id":"485e4a47-2988-4e05-b549-c427838c4efd","block_type":"box","text":"insured individuals (viators). These policies may be considered illiquid because they are bought and sold in a","page_number":95,"box":{"x":70,"y":173,"width":775,"height":11}},{"id":"fc90e5cd-431f-4872-ba81-b2515271f52f","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":95,"box":{"x":69,"y":188,"width":805,"height":12}},{"id":"df676104-5977-4cdc-9221-5b7430ad20ee","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":95,"box":{"x":70,"y":203,"width":789,"height":12}},{"id":"4ed888ba-a7ba-4021-b7a8-389a5e77d892","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":95,"box":{"x":70,"y":218,"width":829,"height":12}},{"id":"ebfa8c11-4016-4dba-9512-b54b065560ee","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":95,"box":{"x":70,"y":234,"width":813,"height":11}},{"id":"8f4503eb-5704-41bd-859c-3b7c297bfaec","block_type":"box","text":"reduce this life expectancy risk by investing only in contracts where the life expectancy was reviewed by an","page_number":95,"box":{"x":69,"y":249,"width":758,"height":11}},{"id":"1f25e42d-d016-4081-9867-288f6021535d","block_type":"box","text":"experienced actuary, as well as by diversifying its investments across viators of varying ages and medical profiles. In","page_number":95,"box":{"x":69,"y":264,"width":832,"height":11}},{"id":"807a556a-b916-4ab3-a4c2-53da5a1287f8","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":95,"box":{"x":69,"y":279,"width":800,"height":11}},{"id":"470f4175-f9b6-4fd1-ae56-7216e22d40df","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":95,"box":{"x":68,"y":294,"width":809,"height":11}},{"id":"56f47f68-6f2f-4796-a497-124378b12045","block_type":"box","text":"monitor its investments to ensure that the Fund remains qualified as a regulated investment company.","page_number":95,"box":{"x":69,"y":309,"width":730,"height":11}},{"id":"65c9d607-aca4-40c5-91d3-87c72a4f496a","block_type":"box","text":"Liquidity Risk Management.","page_number":95,"box":{"x":102,"y":332,"width":202,"height":11}},{"id":"627ed2e8-ea78-43ae-9e3e-76f3de1f8474","block_type":"box","text":"Rule 22e-4 under the Investment Company Act (the “Liquidity Rule”) requires open","page_number":95,"box":{"x":311,"y":332,"width":591,"height":11}},{"id":"6aa464fd-3dee-41db-963e-b89ae40fd628","block_type":"box","text":"end funds, such as the Funds, to adopt a liquidity risk management program and enhance disclosures regarding fund","page_number":95,"box":{"x":69,"y":347,"width":835,"height":11}},{"id":"fc6061a0-85eb-439f-82da-d616c6cd1dc9","block_type":"box","text":"liquidity. As required by the Liquidity Rule, the Funds have implemented a liquidity risk management program (the","page_number":95,"box":{"x":70,"y":362,"width":803,"height":11}},{"id":"b20550b9-5b36-4387-acba-7e5f6061d664","block_type":"box","text":"“Liquidity Program”), and the Boards of Directors of the Funds, including a majority of the independent Directors,","page_number":95,"box":{"x":70,"y":377,"width":801,"height":12}},{"id":"bf23c625-3056-40ab-aef2-467c431ede7e","block_type":"box","text":"have appointed the Manager as the liquidity risk program administrator of the Liquidity Program. Under the Liquidity","page_number":95,"box":{"x":69,"y":392,"width":822,"height":12}},{"id":"a4925437-9602-4b64-98fc-150a60c9710d","block_type":"box","text":"Program, the Manager assesses, manages, and periodically reviews each Fund’s liquidity risk and classifies each","page_number":95,"box":{"x":69,"y":407,"width":808,"height":12}},{"id":"60e7ec21-92e4-44f1-9da3-7608deb3e595","block_type":"box","text":"investment held by a Fund as a “highly liquid investment,” “moderately liquid investment,” “less liquid investment” or","page_number":95,"box":{"x":70,"y":423,"width":838,"height":11}},{"id":"3c6ad651-4112-4943-8204-ebbe164a4ec0","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":95,"box":{"x":70,"y":438,"width":804,"height":11}},{"id":"baadd931-1919-4786-bf0c-b3301f3b7d3f","block_type":"box","text":"redeem shares issued by the Fund without significant dilution of the remaining investors’ interests in the Fund. The","page_number":95,"box":{"x":69,"y":453,"width":821,"height":11}},{"id":"4122e8dc-3d2f-44bd-9789-60b505079c1e","block_type":"box","text":"liquidity of a Fund’s por tfolio investments is determined based on relevant market, trading and investment-specific","page_number":95,"box":{"x":70,"y":468,"width":815,"height":11}},{"id":"049cab39-3c4c-41c2-80ea-83c1f1662e61","block_type":"box","text":"considerations under the Liquidity Program. To the extent that an investment is deemed to be an illiquid investment","page_number":95,"box":{"x":69,"y":483,"width":823,"height":11}},{"id":"591a9f24-9786-436a-a090-e1ce75ef61ec","block_type":"box","text":"or a less liquid investment, a Fund can expect to be exposed to greater liquidity risk.","page_number":95,"box":{"x":69,"y":498,"width":601,"height":11}},{"id":"98692d61-7fee-4875-9328-ab02b7ac40dd","block_type":"box","text":"Master Limited Partnerships.","page_number":95,"box":{"x":102,"y":521,"width":211,"height":11}},{"id":"541db120-5757-464a-9cd7-438c2969a02c","block_type":"box","text":"Cer tain Funds may invest in publicly traded master limited par tnerships (“MLPs”)","page_number":95,"box":{"x":320,"y":521,"width":577,"height":11}},{"id":"b46b200b-22f7-49f0-b7ba-6b65b7b49fb7","block_type":"box","text":"which are limited par tnerships or limited liability companies taxable as par tnerships. MLPs may derive income and","page_number":95,"box":{"x":68,"y":536,"width":816,"height":11}},{"id":"dda8e430-3db7-470d-9d39-4da443a33ec5","block_type":"box","text":"gains from the exploration, development, mining or production, processing, refining, transpor tation (including","page_number":95,"box":{"x":68,"y":551,"width":777,"height":11}},{"id":"c48ecef0-4e41-4c0d-a699-adb535e298e6","block_type":"box","text":"pipelines transpor ting gas, oil, or products thereof), or the marketing of any mineral or natural resources. MLPs","page_number":95,"box":{"x":70,"y":566,"width":792,"height":11}},{"id":"40be1574-9728-43a3-b80f-624aef815248","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":95,"box":{"x":68,"y":581,"width":811,"height":12}},{"id":"ce200250-afb2-4935-9608-c4da58dc8f1f","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":95,"box":{"x":70,"y":596,"width":791,"height":12}},{"id":"4a94cfdd-2d5e-4db7-8bf0-f9258ff27d14","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":95,"box":{"x":68,"y":612,"width":812,"height":11}},{"id":"47006380-8ca8-41fd-bb47-92a0f64be2ea","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":95,"box":{"x":69,"y":627,"width":770,"height":11}},{"id":"d8e3908b-613b-4b85-b567-e72195b1b85d","block_type":"box","text":"corporation or other entity. The general par tner typically controls the operations and management of the MLP through","page_number":95,"box":{"x":69,"y":642,"width":833,"height":11}},{"id":"4312be5f-c2b9-452c-b708-a647781cb85e","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":95,"box":{"x":69,"y":657,"width":799,"height":11}},{"id":"5d2e9057-f69d-448d-91fa-4323c8414120","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":95,"box":{"x":70,"y":672,"width":825,"height":11}},{"id":"f9e071b9-1e7d-4dde-8b41-5b5e81243754","block_type":"box","text":"in the par tnership’s operations and management.","page_number":95,"box":{"x":70,"y":687,"width":352,"height":11}},{"id":"464038dd-94c0-4ce5-bda7-2ebbce79d758","block_type":"box","text":"MLPs are typically structured such that common units and general par tner interests have first priority to receive","page_number":95,"box":{"x":102,"y":710,"width":794,"height":11}},{"id":"9eb75364-a1ae-4c8c-8587-466fb33cded4","block_type":"box","text":"quar terly cash distributions up to an established minimum amount (“minimum quar terly distributions” or “MQD”).","page_number":95,"box":{"x":69,"y":725,"width":809,"height":11}},{"id":"8288f4c9-4ba4-4ac6-af5d-5c87b3a7c4d5","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":95,"box":{"x":69,"y":740,"width":804,"height":11}},{"id":"d5d1c325-a502-40a8-9f49-74be16b0b27c","block_type":"box","text":"Once common and general par tner interests have been paid, subordinated units receive distributions of up to the","page_number":95,"box":{"x":69,"y":755,"width":808,"height":11}},{"id":"00452601-3ed8-46ce-b64b-490f8457208c","block_type":"box","text":"MQD; however, subordinated units do not accrue arrearages. Distributable cash in excess of the MQD paid to both","page_number":95,"box":{"x":70,"y":770,"width":816,"height":12}},{"id":"84139b34-8f1c-403f-9946-2c0312b38171","block_type":"box","text":"common and subordinated units is distributed to both common and subordinated units generally on a pro rata basis.","page_number":95,"box":{"x":69,"y":786,"width":831,"height":11}},{"id":"46db0693-fcc0-42e0-a329-88127f23b614","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":95,"box":{"x":68,"y":801,"width":835,"height":11}},{"id":"9e6ef0ee-aabc-4371-8a6b-3a734c84d2af","block_type":"box","text":"manner which results in distributions paid per common unit surpassing specified target levels. As the general par tner","page_number":95,"box":{"x":69,"y":816,"width":838,"height":11}},{"id":"eae04702-0416-4060-965f-5d0e1738d5b2","block_type":"box","text":"increases cash distributions to the limited par tners, the general par tner receives an increasingly higher percentage of","page_number":95,"box":{"x":70,"y":831,"width":839,"height":11}},{"id":"0888111f-0b20-4687-82ad-c6534a2a0b39","block_type":"box","text":"the incremental cash distributions. A common arrangement provides that the general par tner can reach a tier where","page_number":95,"box":{"x":68,"y":846,"width":828,"height":11}},{"id":"9ec5c5dd-4fc2-40fc-902d-99ccf58d217a","block_type":"box","text":"it receives 50% of every incremental dollar paid to common and subordinated unit holders. These incentive","page_number":95,"box":{"x":70,"y":861,"width":761,"height":11}},{"id":"71c6ba3a-588f-457c-85b2-e95752cbd2e1","block_type":"box","text":"distributions encourage the general par tner to streamline costs, increase capital expenditures and acquire assets in","page_number":95,"box":{"x":69,"y":876,"width":830,"height":11}},{"id":"056c9c45-45a9-4e4c-93f1-03001b022793","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":95,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"06d8c1c3-6d60-4b23-8947-125329162163","block_type":"box","text":"Such results benefit all security holders of the MLP.","page_number":95,"box":{"x":69,"y":906,"width":366,"height":12}},{"id":"48baaa6d-5ee2-456e-8ed2-0d58b3cb8bc9","block_type":"box","text":"II-49","page_number":95,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f7aee6f2-ff2f-4095-8624-232222389551","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":95,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"25fb70e0-dbd5-4c4c-aeb1-ba663794139f","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":96,"box":{"x":102,"y":45,"width":790,"height":11}},{"id":"48f64fc8-cfaa-4e5e-ba29-05bad08c5c1d","block_type":"box","text":"U.S. securities exchanges, with their value fluctuating predominantly based on prevailing market conditions and the","page_number":96,"box":{"x":70,"y":60,"width":820,"height":11}},{"id":"1de5da98-3962-45f4-93fb-9d49b83b01d4","block_type":"box","text":"success of the MLP. Cer tain Funds intend to purchase common units in market transactions. Unlike owners of","page_number":96,"box":{"x":69,"y":75,"width":787,"height":11}},{"id":"c40b60fa-6152-4753-8b5b-bd5c29122037","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":96,"box":{"x":69,"y":90,"width":810,"height":11}},{"id":"964b0ce0-9da4-4b34-a9f2-efd259427a0c","block_type":"box","text":"elect directors. In the event of liquidation, common units have preference over subordinated units, but not over debt","page_number":96,"box":{"x":69,"y":105,"width":828,"height":11}},{"id":"62810d60-831d-4041-9044-85c7e6d08acc","block_type":"box","text":"or preferred units, to the remaining assets of the MLP.","page_number":96,"box":{"x":69,"y":120,"width":387,"height":12}},{"id":"b423a37a-7e53-42d9-9255-409866d09f84","block_type":"box","text":"Merger Transaction Risk.","page_number":96,"box":{"x":102,"y":143,"width":183,"height":11}},{"id":"4d02facc-076c-4b74-8967-29c815052ffd","block_type":"box","text":"A Fund may buy stock of the target company in an announced merger transaction prior","page_number":96,"box":{"x":291,"y":143,"width":616,"height":11}},{"id":"3696e25b-6d07-42d9-a66d-3b4e2f327891","block_type":"box","text":"to the consummation of such transaction. In that circumstance, a Fund would expect to receive an amount (whether","page_number":96,"box":{"x":68,"y":158,"width":827,"height":11}},{"id":"49a9930b-ec27-45a0-9037-2478bdcd69fd","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":96,"box":{"x":70,"y":173,"width":816,"height":11}},{"id":"a08e4875-5f33-4688-ae39-1c174fc044df","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":96,"box":{"x":68,"y":188,"width":825,"height":12}},{"id":"d6d0f8bc-b07c-4cc9-a499-a4317a8c4068","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":96,"box":{"x":69,"y":203,"width":832,"height":12}},{"id":"6d00fec0-7a8e-4794-9389-353fd4a61626","block_type":"box","text":"the Fund and may lose significant value.","page_number":96,"box":{"x":68,"y":218,"width":286,"height":12}},{"id":"57b8de79-787d-454c-aa0b-117637cc123c","block_type":"box","text":"Money Market Obligations of Domestic Banks, Foreign Banks and Foreign Branches of U.S. Banks.","page_number":96,"box":{"x":102,"y":241,"width":723,"height":11}},{"id":"3a1a8417-b4ff-4457-9d0a-04b0972e8916","block_type":"box","text":"Cer tain","page_number":96,"box":{"x":831,"y":241,"width":50,"height":9}},{"id":"69a4e060-0a47-43bc-b431-c9f507258f47","block_type":"box","text":"Funds may purchase bank obligations, such as cer tificates of deposit, notes, bankers’ acceptances and time","page_number":96,"box":{"x":70,"y":256,"width":778,"height":12}},{"id":"2f5d1af6-bdd3-4f0d-955f-d87cf72905e1","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":96,"box":{"x":69,"y":271,"width":802,"height":12}},{"id":"ccc7ec7c-0c7e-4f05-bf86-ff34603ddf66","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":96,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"cc25b8a2-9731-4aab-b23e-19aa24c785d9","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":96,"box":{"x":68,"y":302,"width":794,"height":11}},{"id":"6a7779e6-aeb6-4ca8-8f07-64f94cfe4b22","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":96,"box":{"x":68,"y":317,"width":781,"height":11}},{"id":"40f63c4e-134e-4056-8b2c-0be753c4fc50","block_type":"box","text":"domestic and foreign branches for purposes of a Fund’s investment policies. Investments in shor t-term bank","page_number":96,"box":{"x":69,"y":332,"width":776,"height":11}},{"id":"14d56018-a195-490c-b525-93c55f5973a3","block_type":"box","text":"obligations may include obligations of foreign banks and domestic branches of foreign banks, and also foreign","page_number":96,"box":{"x":69,"y":347,"width":785,"height":11}},{"id":"c667fa02-5a31-46b8-99b0-f9d8cd3365b1","block_type":"box","text":"branches of domestic banks.","page_number":96,"box":{"x":69,"y":362,"width":205,"height":9}},{"id":"7f4179d8-8980-4f7b-b634-9b81b515f4cd","block_type":"box","text":"To the extent consistent with their investment objectives, a Fund may invest in debt obligations of domestic or","page_number":96,"box":{"x":101,"y":385,"width":785,"height":11}},{"id":"70760003-6897-4d0e-9658-918455cae7c7","block_type":"box","text":"foreign corporations and banks, and may acquire commercial obligations issued by Canadian corporations and","page_number":96,"box":{"x":68,"y":400,"width":787,"height":11}},{"id":"f4ef4709-4ee6-4103-8d2f-0805c7d6f2c2","block_type":"box","text":"Canadian counterpar ts of U.S. corporations, as well as Europaper, which is U.S. dollar-denominated commercial","page_number":96,"box":{"x":69,"y":415,"width":797,"height":11}},{"id":"ce705402-3bc7-4b3c-817a-be194fac96c2","block_type":"box","text":"paper of a foreign issuer.","page_number":96,"box":{"x":70,"y":430,"width":176,"height":11}},{"id":"dd59666c-4487-4170-8b7f-433725b116e4","block_type":"box","text":"Money Market Securities.","page_number":96,"box":{"x":102,"y":453,"width":188,"height":11}},{"id":"c10d419c-1195-47fd-bd7e-c3413de653c0","block_type":"box","text":"Cer tain Funds may invest in a broad range of shor t-term, high quality, U.S. dollar","page_number":96,"box":{"x":296,"y":453,"width":578,"height":11}},{"id":"78213e99-b065-453d-8fb2-610873d5fab3","block_type":"box","text":"denominated instruments, such as government, bank, commercial and other obligations that are available in the","page_number":96,"box":{"x":69,"y":468,"width":802,"height":11}},{"id":"155a8763-d32c-4c87-89b4-36a7834a206e","block_type":"box","text":"money markets. In par ticular, the Funds may invest in:","page_number":96,"box":{"x":69,"y":483,"width":386,"height":11}},{"id":"b0ad1836-2b2d-4ef0-adb1-6f4b3581ee26","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":96,"box":{"x":69,"y":503,"width":779,"height":12}},{"id":"65a3bfb6-6171-4d07-98f6-dbc55d1a23f7","block_type":"box","text":"institutions with total assets in excess of $1 billion (including obligations of foreign branches of such banks);","page_number":96,"box":{"x":102,"y":518,"width":776,"height":12}},{"id":"d3776b75-f7ba-4294-aa0c-ce5c96586ec7","block_type":"box","text":"(b) high quality commercial paper and other obligations issued or guaranteed by U.S. and foreign corporations and","page_number":96,"box":{"x":69,"y":538,"width":821,"height":12}},{"id":"0e097750-3e11-444a-97b9-523fbcaa601b","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":96,"box":{"x":102,"y":554,"width":795,"height":11}},{"id":"deb1ed0a-cebb-4dd6-9f07-3dffec7ec252","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":96,"box":{"x":102,"y":569,"width":757,"height":11}},{"id":"242a2767-b9cc-46d1-a698-60832f2a7abc","block_type":"box","text":"agencies;","page_number":96,"box":{"x":102,"y":584,"width":66,"height":11}},{"id":"71e83576-9147-4666-be78-d41a95600d7e","block_type":"box","text":"(c) unrated notes, paper and other instruments that are of comparable quality to the instruments described in","page_number":96,"box":{"x":69,"y":604,"width":792,"height":11}},{"id":"7352fa66-16f6-4e2d-9814-0f499b487b49","block_type":"box","text":"(b) above as determined by the Fund’s Manager;","page_number":96,"box":{"x":102,"y":619,"width":344,"height":11}},{"id":"d44165d7-dd2b-40bc-8c20-0829b7498562","block_type":"box","text":"(d) asset-backed securities (including interests in pools of assets such as mor tgages, installment purchase","page_number":96,"box":{"x":69,"y":639,"width":776,"height":12}},{"id":"a1610868-7b30-431d-9b5b-3fbe9e0bf2f2","block_type":"box","text":"obligations and credit card receivables);","page_number":96,"box":{"x":102,"y":655,"width":283,"height":11}},{"id":"d3adf0d9-8828-4c4d-9a8a-2b8b6b168356","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":96,"box":{"x":69,"y":675,"width":778,"height":11}},{"id":"57426167-fb3d-4707-9728-6489264e4cfe","block_type":"box","text":"authorities and related custodial receipts;","page_number":96,"box":{"x":102,"y":690,"width":296,"height":11}},{"id":"5d860891-446e-41ca-90af-0a7dcab82435","block_type":"box","text":"(f) dollar-denominated securities issued or guaranteed by foreign governments or their political subdivisions,","page_number":96,"box":{"x":69,"y":710,"width":782,"height":11}},{"id":"4aff6d98-bd5d-40b6-8eef-a4bdb77a5b91","block_type":"box","text":"agencies or authorities;","page_number":96,"box":{"x":102,"y":725,"width":166,"height":11}},{"id":"1d92429c-ba62-47db-b9b0-fed28727b9ab","block_type":"box","text":"(g) funding agreements issued by highly-rated U.S. insurance companies;","page_number":96,"box":{"x":69,"y":745,"width":528,"height":11}},{"id":"a3f8ecfc-f39c-4bbc-9823-a1bc95ea8881","block_type":"box","text":"(h) securities issued or guaranteed by state or local governmental bodies;","page_number":96,"box":{"x":69,"y":766,"width":534,"height":11}},{"id":"b922c7f0-c0ef-4fec-86a8-7e0885d71630","block_type":"box","text":"(i) repurchase agreements relating to the above instruments;","page_number":96,"box":{"x":69,"y":786,"width":447,"height":11}},{"id":"4f7e220b-88f8-46a6-b53e-49eee387a136","block_type":"box","text":"(j) municipal bonds and notes whose principal and interest payments are guaranteed by the U.S. Government or","page_number":96,"box":{"x":69,"y":806,"width":812,"height":11}},{"id":"3796d50d-43d7-4cbc-b918-00e314bb0c5b","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":96,"box":{"x":102,"y":821,"width":766,"height":11}},{"id":"b0de6e55-58cf-446a-941a-0efc861ce5d9","block_type":"box","text":"States;","page_number":96,"box":{"x":102,"y":836,"width":49,"height":10}},{"id":"9d715145-1e0b-44e5-a6ff-82842d04a088","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":96,"box":{"x":69,"y":856,"width":829,"height":11}},{"id":"32f333ff-aac7-4075-abfd-84ca0356f904","block_type":"box","text":"SP-2 or A-2 or higher by S&P, or F-2 or higher by Fitch;","page_number":96,"box":{"x":102,"y":871,"width":379,"height":11}},{"id":"dcc4367c-95fb-4fa3-b468-d19efbce0328","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":96,"box":{"x":69,"y":891,"width":826,"height":12}},{"id":"1db3fb2e-7183-4fe6-9c53-97f07c9d7d72","block_type":"box","text":"S&P, or F-2 or higher by Fitch;","page_number":96,"box":{"x":102,"y":906,"width":207,"height":12}},{"id":"f21ba96e-037b-48ac-8b72-9be94d9959be","block_type":"box","text":"II-50","page_number":96,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"78ca97af-25c7-4951-b647-e1536f622efc","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":96,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"fe9f4c1e-4b37-47e0-9ac2-b26c6e099070","block_type":"box","text":"(m) municipal bonds rated A or higher by Moody’s, S&P or Fitch;","page_number":97,"box":{"x":69,"y":45,"width":458,"height":11}},{"id":"c5a9c3c3-e6bd-42fe-8a4e-1c12547a65a2","block_type":"box","text":"(n) unrated notes, paper or other instruments that are of comparable quality to the instruments described above, as","page_number":97,"box":{"x":69,"y":65,"width":837,"height":11}},{"id":"d8a6448f-9fe8-4f8c-97a7-5d1fae55c918","block_type":"box","text":"determined by the Fund’s Manager under guidelines established by the Board; and","page_number":97,"box":{"x":101,"y":80,"width":589,"height":11}},{"id":"16d5d2ee-81f9-4892-b12c-b6e209b32c74","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":97,"box":{"x":69,"y":100,"width":795,"height":11}},{"id":"dd08f68b-abe0-49a1-93ac-6049309b25a2","block_type":"box","text":"agency or instrumentality thereof or which otherwise depend directly or indirectly on the credit of the United","page_number":97,"box":{"x":102,"y":115,"width":764,"height":11}},{"id":"c8b11434-a550-4323-a607-1879702ce1a0","block_type":"box","text":"States.","page_number":97,"box":{"x":102,"y":130,"width":49,"height":9}},{"id":"65170bc2-aa40-4723-ad4d-cd241be7a8fd","block_type":"box","text":"Mortgage-Related Securities.","page_number":97,"box":{"x":102,"y":153,"width":213,"height":11}},{"id":"4b4b2438-d8e0-4208-8ea8-0dc8d41efd33","block_type":"box","text":"Mor tgage-Backed Securities.","page_number":97,"box":{"x":102,"y":176,"width":203,"height":11}},{"id":"e340ddb2-b8cc-4f93-b453-22cd876ac286","block_type":"box","text":"Mor tgage-backed securities represent interests in pools of mor tgages in which","page_number":97,"box":{"x":312,"y":176,"width":560,"height":11}},{"id":"73a6dea7-5290-4c1d-9ea2-cb22b96bbdc7","block_type":"box","text":"payments of both principal and interest on the securities are generally made monthly, in effect “passing through”","page_number":97,"box":{"x":70,"y":191,"width":805,"height":11}},{"id":"d1ecd343-daa8-4efe-b29a-c2b7d6315f7b","block_type":"box","text":"monthly payments made by borrowers on the residential or commercial mor tgage loans that underlie the securities","page_number":97,"box":{"x":69,"y":206,"width":819,"height":11}},{"id":"15ef74ce-1354-42f2-bb7a-fcba9ef2f218","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":97,"box":{"x":69,"y":221,"width":832,"height":11}},{"id":"7b0b75b7-811f-4c08-9217-834a458d2ab4","block_type":"box","text":"of debt securities, which normally provide for periodic payment of interest in fixed amounts with principal payments at","page_number":97,"box":{"x":69,"y":236,"width":838,"height":11}},{"id":"b342a851-d5a5-4e94-a65d-31ec8d5f3c0a","block_type":"box","text":"maturity or specified call dates.","page_number":97,"box":{"x":69,"y":251,"width":222,"height":11}},{"id":"60c3d3bf-9549-454b-837d-8658d1603559","block_type":"box","text":"Mor tgage-backed securities are subject to the general risks associated with investing in real estate securities;","page_number":97,"box":{"x":102,"y":274,"width":785,"height":11}},{"id":"8538a2b4-0342-4743-ab4d-6b3343618fc6","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":97,"box":{"x":68,"y":289,"width":838,"height":11}},{"id":"0adc2389-1cea-44c8-94be-a2a01b3b1fb2","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":97,"box":{"x":69,"y":304,"width":836,"height":11}},{"id":"51ecc9f4-3fda-47e8-a018-1b66d9e8306e","block_type":"box","text":"par ty to meet its commitments under the related operative documents, adverse interest rate changes and the effects","page_number":97,"box":{"x":70,"y":319,"width":837,"height":12}},{"id":"0934d5f2-ae61-4a05-b441-e7590ff25dab","block_type":"box","text":"of prepayments on mor tgage cash flows. Mor tgage-backed securities are “pass-through” securities, meaning that","page_number":97,"box":{"x":69,"y":334,"width":810,"height":12}},{"id":"5e1d3b4b-f52d-4beb-987d-cf3fab9cefd4","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":97,"box":{"x":70,"y":350,"width":811,"height":11}},{"id":"c0c5a67a-90a3-4cd1-aac0-12607a4e1366","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":97,"box":{"x":68,"y":365,"width":837,"height":11}},{"id":"e52a749d-bbcb-4098-8d0a-aacee55962a9","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":97,"box":{"x":70,"y":380,"width":834,"height":11}},{"id":"ec854771-078a-4f34-837c-40957b395cb4","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":97,"box":{"x":69,"y":395,"width":840,"height":11}},{"id":"86e27daf-b2fb-4641-8c39-60565f627df8","block_type":"box","text":"correctly. The value of mor tgage-backed securities, like that of traditional fixed-income securities, typically increases","page_number":97,"box":{"x":69,"y":410,"width":827,"height":11}},{"id":"7694c699-de1e-48c5-9244-d9c3b893b0ae","block_type":"box","text":"when interest rates fall and decreases when interest rates rise. However, mor tgage-backed securities differ from","page_number":97,"box":{"x":68,"y":425,"width":805,"height":11}},{"id":"fdedb861-a5d2-42f9-9013-7bfc6c4c26ab","block_type":"box","text":"traditional fixed-income securities because of their potential for prepayment without penalty. The price paid by a Fund","page_number":97,"box":{"x":68,"y":440,"width":834,"height":11}},{"id":"aa3b87d5-d330-4949-88a3-01d66b7d579b","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":97,"box":{"x":68,"y":455,"width":791,"height":12}},{"id":"6be58bf3-1153-4d9d-9937-6ffd2376fdf0","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":97,"box":{"x":69,"y":470,"width":816,"height":12}},{"id":"29356551-6071-4395-b6a3-267c25f25daf","block_type":"box","text":"underlying mor tgages. In a period of declining interest rates, borrowers may prepay the underlying mor tgages more","page_number":97,"box":{"x":69,"y":486,"width":819,"height":11}},{"id":"43a7c6fc-d43d-4f8b-a265-4173c95d0ca3","block_type":"box","text":"quickly than anticipated, thereby reducing the yield to maturity and the average life of the mor tgage-backed","page_number":97,"box":{"x":69,"y":501,"width":761,"height":11}},{"id":"8df38f0d-42ea-4470-997b-7bf0b11bf144","block_type":"box","text":"securities. Moreover, when a Fund reinvests the proceeds of a prepayment in these circumstances, it will likely","page_number":97,"box":{"x":69,"y":516,"width":791,"height":11}},{"id":"f7fd0a57-f05b-498d-b504-1606ab34e48f","block_type":"box","text":"receive a rate of interest that is lower than the rate on the security that was prepaid.","page_number":97,"box":{"x":69,"y":531,"width":602,"height":11}},{"id":"b90b95ef-3950-4bda-bc73-983e2a8c2341","block_type":"box","text":"To the extent that a Fund purchases mor tgage-backed securities at a premium, mor tgage foreclosures and","page_number":97,"box":{"x":101,"y":554,"width":761,"height":11}},{"id":"8445af58-9ecc-4460-8b7a-ea058fb24013","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":97,"box":{"x":70,"y":569,"width":800,"height":11}},{"id":"eda43c32-0b0b-4f78-afec-cd2677074345","block_type":"box","text":"discount, both scheduled payments of principal and unscheduled prepayments will increase current and total returns","page_number":97,"box":{"x":69,"y":584,"width":833,"height":11}},{"id":"10ef7c92-a3e6-4c88-aa96-6d2976e5715f","block_type":"box","text":"and will accelerate the recognition of income, which, when distributed to shareholders, will be taxable as ordinary","page_number":97,"box":{"x":69,"y":599,"width":809,"height":11}},{"id":"5005917a-cb37-495d-8bc5-9ac5425c806b","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":97,"box":{"x":70,"y":614,"width":801,"height":11}},{"id":"10dd0c5d-99d3-4a2e-a2bf-770883ef019e","block_type":"box","text":"expected rate, creating maturity extension risk. This par ticular risk may effectively change a security that was","page_number":97,"box":{"x":69,"y":629,"width":778,"height":11}},{"id":"15e020a1-9fb9-4ded-a539-41af0c1dd62a","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":97,"box":{"x":69,"y":644,"width":831,"height":12}},{"id":"a0d632be-10c4-45f2-a63e-b9a173a89d32","block_type":"box","text":"securities generally fluctuates more widely in response to changes in interest rates than that of shor ter-term","page_number":97,"box":{"x":69,"y":659,"width":773,"height":12}},{"id":"782e97d7-7290-403f-9598-9a95d7617d2d","block_type":"box","text":"securities, maturity extension risk could increase the inherent volatility of the Fund. Under cer tain interest rate and","page_number":97,"box":{"x":69,"y":675,"width":818,"height":11}},{"id":"b49f2994-d8e7-4dee-8ae7-d060809c465c","block_type":"box","text":"prepayment scenarios, a Fund may fail to recoup fully its investment in mor tgage-backed securities notwithstanding","page_number":97,"box":{"x":70,"y":690,"width":822,"height":11}},{"id":"6254681e-150b-4c8f-9ab0-0fd5c6df9eb8","block_type":"box","text":"any direct or indirect governmental or agency guarantee.","page_number":97,"box":{"x":69,"y":705,"width":399,"height":11}},{"id":"00108a65-a97d-460a-9b9d-5ae721f9f552","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":97,"box":{"x":101,"y":727,"width":802,"height":12}},{"id":"3976e649-02ef-4895-8d41-b83014e99c04","block_type":"box","text":"one of its agencies or instrumentalities, such as the Government National Mor tgage Association (“Ginnie Mae”), the","page_number":97,"box":{"x":69,"y":743,"width":830,"height":11}},{"id":"7a5340e6-b3cb-443f-adbf-95cc0bdca7ab","block_type":"box","text":"Federal National Mor tgage Association (“Fannie Mae”) and the Federal Home Loan Mor tgage Corporation (“Freddie","page_number":97,"box":{"x":70,"y":758,"width":818,"height":11}},{"id":"aea63f13-e1d4-4c5b-964a-f80eb80c8633","block_type":"box","text":"Mac”); (2) those issued by private issuers that represent an interest in or are collateralized by pass-through","page_number":97,"box":{"x":70,"y":773,"width":766,"height":11}},{"id":"7ce971ef-12d4-4fc0-aa04-ca26bc8b9709","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":97,"box":{"x":69,"y":788,"width":808,"height":11}},{"id":"05f9f9b2-98d0-4ff8-8cee-72814a8b2891","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":97,"box":{"x":70,"y":803,"width":825,"height":11}},{"id":"2548aead-b528-4ab9-9ffb-186c512b586f","block_type":"box","text":"securities without a government guarantee but that usually have some form of private credit enhancement.","page_number":97,"box":{"x":69,"y":818,"width":761,"height":11}},{"id":"6bf36123-9407-41ef-9e48-7f45a489b143","block_type":"box","text":"Ginnie Mae is a wholly owned U.S. Government corporation within the Depar tment of Housing and Urban","page_number":97,"box":{"x":102,"y":841,"width":743,"height":11}},{"id":"9d4c18ac-e8e4-45f3-b735-8d910131d318","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":97,"box":{"x":70,"y":856,"width":831,"height":11}},{"id":"642b8895-06ad-4334-8070-14679f8a3621","block_type":"box","text":"payment of principal and interest on securities issued by the institutions approved by Ginnie Mae (such as savings","page_number":97,"box":{"x":70,"y":871,"width":815,"height":11}},{"id":"509e06ad-4e72-4cd5-b6d2-4bc4a0f8b7dc","block_type":"box","text":"and loan institutions, commercial banks and mor tgage banks), and backed by pools of Federal Housing","page_number":97,"box":{"x":69,"y":886,"width":737,"height":12}},{"id":"0e0e435c-b2e4-4625-83a7-a5165e9ba35b","block_type":"box","text":"Administration (“FHA”)-insured or Veterans’ Administration (“VA”)-guaranteed mor tgages. Pass-through cer tificates","page_number":97,"box":{"x":68,"y":901,"width":814,"height":12}},{"id":"63cd83df-0191-4f93-8f57-f2c44d8c467f","block_type":"box","text":"II-51","page_number":97,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7bb05496-df70-4fbf-953a-37c681752981","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":97,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1a9b01ad-553f-4e96-a037-e09d5c084117","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":98,"box":{"x":68,"y":45,"width":794,"height":11}},{"id":"5e7b642d-bd20-46a8-b443-d5813e941d31","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":98,"box":{"x":70,"y":60,"width":828,"height":11}},{"id":"c6ac5cc6-317f-49cb-944e-3ad67ac34054","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":98,"box":{"x":69,"y":75,"width":798,"height":11}},{"id":"19e57214-5f5b-4134-a018-45417410dfcb","block_type":"box","text":"Treasury Depar tment to make payments under its guarantee. Mor tgage-related securities issued by Fannie Mae","page_number":98,"box":{"x":68,"y":90,"width":798,"height":11}},{"id":"72bd2b87-3603-4687-a0fb-5904770103b7","block_type":"box","text":"include Fannie Mae guaranteed Mor tgage Pass-Through Cer tificates (also known as “Fannie Maes”), which are","page_number":98,"box":{"x":70,"y":105,"width":788,"height":11}},{"id":"12497b16-3740-4056-b722-8604b8db2548","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":98,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"5d696a71-9407-422f-8e32-04066debd2a4","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":98,"box":{"x":68,"y":135,"width":825,"height":12}},{"id":"d9f8a83d-9a82-4e67-a0c4-8ade7d2f1723","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":98,"box":{"x":70,"y":150,"width":830,"height":12}},{"id":"6680c3c4-fe62-4f51-b710-035a717d39b3","block_type":"box","text":"private shareholder-owned company. Mor tgage-related securities issued by Freddie Mac include Freddie Mac","page_number":98,"box":{"x":70,"y":166,"width":770,"height":11}},{"id":"5e7ec1aa-93d3-44ee-9394-06ae0b89c9c2","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":98,"box":{"x":70,"y":181,"width":812,"height":11}},{"id":"294442ca-8fd6-4dbc-8b32-5dbd6bfba1a3","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":98,"box":{"x":69,"y":196,"width":829,"height":11}},{"id":"c312c826-9dda-4d39-b0ac-ce197ecbf8f5","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":98,"box":{"x":70,"y":211,"width":832,"height":11}},{"id":"6da72a83-8f0e-40b8-bc93-8bad2b5026d6","block_type":"box","text":"Freddie Macs entitle the holder to timely payment of interest, which is guaranteed by Freddie Mac. Freddie Mac","page_number":98,"box":{"x":70,"y":226,"width":792,"height":11}},{"id":"00b90943-f62f-4202-96c9-12bf49c3b5ab","block_type":"box","text":"guarantees either ultimate collection or timely payment of all principal payments on the underlying mor tgage loans.","page_number":98,"box":{"x":68,"y":241,"width":819,"height":11}},{"id":"152b4717-6c2d-4104-a4a1-7d43ae26470d","block_type":"box","text":"While Freddie Mac generally does not guarantee timely payment of principal, Freddie Mac may remit the amount due","page_number":98,"box":{"x":68,"y":256,"width":829,"height":12}},{"id":"24cea60b-ed0f-4811-90c3-f695af1bff34","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":98,"box":{"x":69,"y":271,"width":829,"height":12}},{"id":"a7ac4ca2-8047-4d23-89ea-f4c62ce30404","block_type":"box","text":"in no event later than one year after it becomes payable.","page_number":98,"box":{"x":70,"y":286,"width":401,"height":12}},{"id":"a46126db-759f-48e1-8ddf-f57338c0f7ad","block_type":"box","text":"Private mor tgage pass-through securities are structured similarly to Ginnie Mae, Fannie Mae, and Freddie Mac","page_number":98,"box":{"x":102,"y":309,"width":786,"height":11}},{"id":"2d5b40a5-5dc4-4a26-8b9e-bcc42cae04ff","block_type":"box","text":"mor tgage pass-through securities and are issued by originators of and investors in mor tgage loans, including","page_number":98,"box":{"x":69,"y":324,"width":777,"height":12}},{"id":"81f023db-e554-4f9c-a20a-63a6e930c724","block_type":"box","text":"depository institutions, mor tgage banks, investment banks and special purpose subsidiaries of the foregoing.","page_number":98,"box":{"x":69,"y":339,"width":782,"height":12}},{"id":"b9b3e61f-e84e-404e-ab1b-5cd672e2dd61","block_type":"box","text":"Pools created by private mor tgage pass-through issuers generally offer a higher rate of interest than government","page_number":98,"box":{"x":102,"y":362,"width":802,"height":11}},{"id":"404a24d0-27e4-4a37-b360-9656f8ee2fd9","block_type":"box","text":"and government-related pools because there are no direct or indirect government or agency guarantees of payments","page_number":98,"box":{"x":69,"y":377,"width":828,"height":12}},{"id":"1ae07e7b-64bc-4bc2-af7d-04b0152cac0e","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":98,"box":{"x":70,"y":392,"width":814,"height":12}},{"id":"dbb51db4-957a-40e4-baac-a680ceb78f60","block_type":"box","text":"forms of insurance or guarantees, including individual loan, title, pool and hazard insurance and letters of credit. The","page_number":98,"box":{"x":68,"y":407,"width":833,"height":12}},{"id":"51c3eae6-2e16-49a0-9f3c-2e29303afcdc","block_type":"box","text":"insurance and guarantees are issued by governmental entities, private insurers and the mor tgage poolers. The","page_number":98,"box":{"x":70,"y":423,"width":789,"height":11}},{"id":"fc1ffb28-8005-407c-b542-edcf5b25c534","block_type":"box","text":"insurance and guarantees and the creditwor thiness of the issuers thereof will be considered in determining whether","page_number":98,"box":{"x":70,"y":438,"width":827,"height":11}},{"id":"61eb4988-e9f0-4ac8-8eec-6f2fddb10ed3","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":98,"box":{"x":69,"y":453,"width":838,"height":11}},{"id":"5970cc22-fb6c-4459-ba55-2c50dcbfc89d","block_type":"box","text":"insurers or guarantors can meet their obligations under the insurance policies or guarantee arrangements. Private","page_number":98,"box":{"x":70,"y":468,"width":810,"height":11}},{"id":"ea18e21a-3e87-4046-8c41-a4cbab966561","block_type":"box","text":"mor tgage pass-through securities may be bought without insurance or guarantees if, through an examination of the","page_number":98,"box":{"x":69,"y":483,"width":820,"height":11}},{"id":"83a808d0-ef3d-445a-a76b-c8f1e2d37c08","block_type":"box","text":"loan experience and practices of the originator/servicers and poolers, the Manager determines that the securities","page_number":98,"box":{"x":70,"y":498,"width":812,"height":11}},{"id":"949f02da-ee10-4aad-884e-6f5acefc6071","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":98,"box":{"x":69,"y":514,"width":790,"height":11}},{"id":"2220a6be-e16b-4a94-8ead-8400e0738fc2","block_type":"box","text":"exposure to subprime loans as well as to the mor tgage and credit markets generally.","page_number":98,"box":{"x":69,"y":529,"width":604,"height":11}},{"id":"046db6d5-5445-4fc2-a446-c65342449021","block_type":"box","text":"In addition, mor tgage-related securities that are issued by private issuers are not subject to the underwriting","page_number":98,"box":{"x":102,"y":551,"width":774,"height":11}},{"id":"2e01066c-09b0-4411-96c9-ba8a4be16d2e","block_type":"box","text":"requirements for the underlying mor tgages that are applicable to those mor tgage-related securities that have a","page_number":98,"box":{"x":69,"y":566,"width":791,"height":11}},{"id":"dba52e35-24f6-4c0f-b7d0-1c708bd10725","block_type":"box","text":"government or government-sponsored entity guarantee. As a result, the mor tgage loans underlying private mor tgage","page_number":98,"box":{"x":68,"y":582,"width":832,"height":11}},{"id":"f17f542b-ecf9-4eb8-94f4-2e93c722fc81","block_type":"box","text":"related securities may, and frequently do, have less favorable collateral, credit risk or other underwriting","page_number":98,"box":{"x":69,"y":596,"width":742,"height":12}},{"id":"679e26c1-1ad7-4173-9073-3dcc9ac4175c","block_type":"box","text":"characteristics than government or government-sponsored mor tgage-related securities and have wider variances in a","page_number":98,"box":{"x":69,"y":612,"width":831,"height":11}},{"id":"c0ba2917-7f64-47f4-b1b3-d7054cba14b2","block_type":"box","text":"number of terms including interest rate, term, size, purpose and borrower characteristics. Privately issued pools more","page_number":98,"box":{"x":69,"y":627,"width":840,"height":11}},{"id":"6048c35a-1329-4139-9145-9f0993649684","block_type":"box","text":"frequently include second mor tgages, high loan-to-value mor tgages and manufactured housing loans. The coupon","page_number":98,"box":{"x":68,"y":642,"width":809,"height":11}},{"id":"5d99e454-62e9-4a2d-8032-6553e10f20be","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":98,"box":{"x":69,"y":657,"width":828,"height":11}},{"id":"5ffb51d0-ee79-4f20-be2f-97b26eac5b02","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":98,"box":{"x":69,"y":672,"width":830,"height":11}},{"id":"32922b94-3b9b-45fb-8c58-753965ede6ec","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":98,"box":{"x":70,"y":687,"width":810,"height":11}},{"id":"b8e417be-ea4e-4b35-9149-e40a9e5d3f72","block_type":"box","text":"make timely payments on their loans. For these reasons, the loans underlying these securities have had in many","page_number":98,"box":{"x":69,"y":703,"width":804,"height":11}},{"id":"c19a0434-5254-4229-8886-f15b9e4f2a28","block_type":"box","text":"cases higher default rates than those loans that meet government underwriting requirements.","page_number":98,"box":{"x":69,"y":717,"width":669,"height":12}},{"id":"3f4c8c4f-369f-4006-b54c-889c0572c407","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":98,"box":{"x":101,"y":740,"width":754,"height":11}},{"id":"dacf5963-24e2-4b57-9535-d538809ba2e5","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":98,"box":{"x":69,"y":755,"width":795,"height":11}},{"id":"9264ed5f-311c-4547-abef-d7dd6844aff7","block_type":"box","text":"repayments may include a general economic turndown, high unemployment, a general slowdown in the real estate","page_number":98,"box":{"x":69,"y":771,"width":812,"height":11}},{"id":"cd1cc625-d79e-4995-999e-b00235c37f7f","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":98,"box":{"x":69,"y":785,"width":788,"height":12}},{"id":"e9eee862-0b07-4516-a520-b08e64ae44ce","block_type":"box","text":"payments by holders of adjustable rate mor tgages.","page_number":98,"box":{"x":70,"y":801,"width":361,"height":11}},{"id":"43969dee-590e-496d-8c3a-17726e9c8823","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":98,"box":{"x":102,"y":823,"width":784,"height":12}},{"id":"1cea28bf-cc0c-4c29-8213-568c747f4b68","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":98,"box":{"x":68,"y":838,"width":813,"height":12}},{"id":"f0d8ddca-74f2-4cae-bd3b-e03a75c98b98","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":98,"box":{"x":68,"y":853,"width":837,"height":12}},{"id":"c956ec16-f36a-4f1e-85ee-83d4315d805a","block_type":"box","text":"value because of the complexities involved in assessing the value of the underlying mor tgage loans.","page_number":98,"box":{"x":68,"y":869,"width":714,"height":11}},{"id":"7cd59fa9-37de-4ac1-845e-a4a157a18431","block_type":"box","text":"Collateralized Mor tgage Obligations (“CMOs”).","page_number":98,"box":{"x":102,"y":891,"width":328,"height":12}},{"id":"1aa5b9c4-b340-4d9a-826f-c4fd5aa87bb4","block_type":"box","text":"CMOs are debt obligations collateralized by residential or","page_number":98,"box":{"x":437,"y":891,"width":407,"height":12}},{"id":"e22a3d2d-fb43-49fa-bf87-9d77a88663af","block_type":"box","text":"commercial mor tgage loans or residential or commercial mor tgage pass-through securities. Interest and prepaid","page_number":98,"box":{"x":69,"y":907,"width":800,"height":11}},{"id":"ab38bc97-0274-41b7-9172-0ca7ea962438","block_type":"box","text":"II-52","page_number":98,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"264f1ead-a7f0-4476-a59e-76368127399f","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":98,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c51be080-695a-4354-91ae-e8f978c8edfc","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":99,"box":{"x":70,"y":45,"width":827,"height":11}},{"id":"ec62d57f-6291-4adf-8fbf-58a000488267","block_type":"box","text":"through securities but are more typically collateralized by por tfolios of mor tgage pass-through securities guaranteed","page_number":99,"box":{"x":68,"y":60,"width":826,"height":11}},{"id":"7aab2dc5-901a-4954-b90f-136764a4ab25","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":99,"box":{"x":69,"y":75,"width":833,"height":11}},{"id":"8e78b542-da26-46e4-a3e9-93fdbf487ccb","block_type":"box","text":"Mor tgage Investment Conduit (“REMIC”). All future references to CMOs also include REMICs.","page_number":99,"box":{"x":70,"y":90,"width":661,"height":11}},{"id":"8400b31b-5113-44e3-a3ba-b949160bc4d1","block_type":"box","text":"CMOs are structured into multiple classes, often referred to as a “tranche,” each issued at a specific adjustable","page_number":99,"box":{"x":102,"y":113,"width":803,"height":11}},{"id":"6a17d17b-96af-4501-8ec8-98c81dc04aba","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":99,"box":{"x":69,"y":128,"width":837,"height":11}},{"id":"540ead45-4fbf-4ce8-b5ab-5debbfb99985","block_type":"box","text":"distribution date. Actual maturity and average life will depend upon the prepayment experience of the collateral, which","page_number":99,"box":{"x":69,"y":143,"width":838,"height":11}},{"id":"e75f6c17-d052-4c97-a671-881e735546c7","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":99,"box":{"x":70,"y":158,"width":836,"height":11}},{"id":"4d675e3d-b63a-4200-a9c3-899839acea22","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":99,"box":{"x":69,"y":173,"width":791,"height":11}},{"id":"bc9c273f-703d-4832-8397-acd454679267","block_type":"box","text":"payment of principal received from the pool of underlying mor tgages, including prepayments, is first returned to","page_number":99,"box":{"x":70,"y":188,"width":792,"height":12}},{"id":"78b63679-8407-4af7-848c-4ca08c705540","block_type":"box","text":"investors holding the shor test maturity class. Investors holding the longer maturity classes usually receive principal","page_number":99,"box":{"x":70,"y":204,"width":820,"height":11}},{"id":"674de265-15fc-4710-b9a6-697e101c87c8","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":99,"box":{"x":69,"y":218,"width":836,"height":12}},{"id":"1caa7141-3853-4908-99a7-d1d3e53ab9bc","block_type":"box","text":"of principal because of the sequential payments.","page_number":99,"box":{"x":69,"y":234,"width":346,"height":11}},{"id":"520e11e2-fc69-463c-9cb9-676d83b7db62","block_type":"box","text":"Cer tain issuers of CMOs are not considered investment companies pursuant to a rule adopted by the","page_number":99,"box":{"x":102,"y":256,"width":723,"height":11}},{"id":"2a5f5540-64e7-4c16-bd24-1701bb4c24bb","block_type":"box","text":"Commission, and a Fund may invest in the securities of such issuers without the limitations imposed by the","page_number":99,"box":{"x":69,"y":271,"width":768,"height":12}},{"id":"1d47551c-c3d4-415e-8fb0-bfda1dd5dbf7","block_type":"box","text":"Investment Company Act on investments by a Fund in other investment companies. In addition, in reliance on an","page_number":99,"box":{"x":70,"y":287,"width":800,"height":11}},{"id":"faee4615-cd21-4e71-8391-9425d3d6b246","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":99,"box":{"x":69,"y":302,"width":836,"height":11}},{"id":"09bddc95-a75e-46d4-bda7-0d2e4a306a13","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":99,"box":{"x":69,"y":317,"width":793,"height":11}},{"id":"fe099566-e504-4edd-8a8c-e7d5abc02e67","block_type":"box","text":"investment companies. In order to be able to rely on the Commission’s interpretation, these CMOs must be","page_number":99,"box":{"x":70,"y":332,"width":767,"height":11}},{"id":"63ae85c0-cd24-47c7-83aa-be3fe337f32d","block_type":"box","text":"unmanaged, fixed asset issuers, that: (1) invest primarily in mor tgage-backed securities; (2) do not issue redeemable","page_number":99,"box":{"x":69,"y":347,"width":838,"height":11}},{"id":"a90b2705-db5e-494b-8049-1eb541bf8898","block_type":"box","text":"securities; (3) operate under general exemptive orders exempting them from all provisions of the Investment","page_number":99,"box":{"x":69,"y":362,"width":773,"height":11}},{"id":"a730aa25-c9ef-40fe-811d-b9c11e1a6e0c","block_type":"box","text":"Company Act; and (4) are not registered or regulated under the Investment Company Act as investment companies.","page_number":99,"box":{"x":69,"y":377,"width":821,"height":12}},{"id":"6e592723-2bca-431d-bb9e-303bd27ea34e","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":99,"box":{"x":68,"y":392,"width":836,"height":12}},{"id":"5ad03c9f-4f6e-4625-a721-a7ccc31901fa","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":99,"box":{"x":69,"y":407,"width":795,"height":12}},{"id":"6ac64314-5893-49ed-9a70-9036b9433625","block_type":"box","text":"securities of any single such entity.","page_number":99,"box":{"x":69,"y":423,"width":248,"height":11}},{"id":"c2ae9d5d-a578-4fa5-939f-46e26ac19544","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":99,"box":{"x":101,"y":445,"width":807,"height":12}},{"id":"24a95767-75da-4296-92fc-bbbba67c56f8","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":99,"box":{"x":69,"y":460,"width":805,"height":12}},{"id":"cb4da568-8ba5-422c-a298-6bd624b92942","block_type":"box","text":"concurrently on a propor tionate or dispropor tionate basis. These simultaneous payments are taken into account in","page_number":99,"box":{"x":69,"y":476,"width":819,"height":11}},{"id":"8dcd9dea-c8dc-43c6-861c-e7e96c65baec","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":99,"box":{"x":69,"y":491,"width":829,"height":11}},{"id":"e4363cee-5654-4b29-9e30-516a1e7cae14","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":99,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"0e504059-e6c2-4293-b716-87c614c94bd6","block_type":"box","text":"or sequential pay structures. These securities include accrual cer tificates (also known as “Z-Bonds”), which only","page_number":99,"box":{"x":69,"y":521,"width":802,"height":11}},{"id":"3c7bf334-3697-410b-a95d-8a8ef64fc933","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":99,"box":{"x":69,"y":536,"width":833,"height":11}},{"id":"bd7ecc41-6fbe-474e-9a40-000eb18a1362","block_type":"box","text":"and are conver ted thereafter to an interest-paying security. Floating rate CMOs are securities whose coupon rate","page_number":99,"box":{"x":69,"y":551,"width":801,"height":11}},{"id":"3e12f2d7-2f7a-408e-8206-2aad53d152c9","block_type":"box","text":"fluctuates according to some formula related to an existing market index or rate. Typical indices would include the","page_number":99,"box":{"x":68,"y":566,"width":813,"height":11}},{"id":"a1bb1924-3e06-4e41-8372-41daa23d1cc8","block_type":"box","text":"eleventh district cost-of-funds index (“COFI”), one-year Treasury yields, and ten-year Treasury yields.","page_number":99,"box":{"x":69,"y":581,"width":708,"height":11}},{"id":"b7b58e4e-d876-4dfb-984a-438d53e98f44","block_type":"box","text":"Classes of CMOs also include planned amor tization classes (“PACs”) and targeted amor tization classes","page_number":99,"box":{"x":102,"y":604,"width":742,"height":11}},{"id":"0c527ba7-bffd-4dbf-93ab-8f9f8c88bf9f","block_type":"box","text":"(“TACs”). PAC bonds generally require payments of a specified amount of principal on each payment date. The","page_number":99,"box":{"x":69,"y":619,"width":784,"height":11}},{"id":"f326f40a-3ae9-4503-8296-979cab6edab6","block_type":"box","text":"scheduled principal payments for PAC Cer tificates generally have the highest priority on each payment date after","page_number":99,"box":{"x":69,"y":634,"width":800,"height":12}},{"id":"d2295aa1-3bfe-4841-b68a-65434125edc3","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":99,"box":{"x":70,"y":649,"width":802,"height":12}},{"id":"631e5051-d175-4ad5-af6d-6165034860aa","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":99,"box":{"x":69,"y":664,"width":834,"height":12}},{"id":"2f05a837-7d50-4482-a5f1-5a2be2ce16c8","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":99,"box":{"x":68,"y":680,"width":835,"height":11}},{"id":"2434d7ec-b2d9-461f-9a41-840b670213eb","block_type":"box","text":"be created that absorb most of the volatility in the underlying mor tgage assets. These tranches (often called","page_number":99,"box":{"x":69,"y":695,"width":772,"height":11}},{"id":"512c72ac-0851-4df3-ad19-aec2595b4a4b","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":99,"box":{"x":70,"y":710,"width":792,"height":11}},{"id":"54399e2f-2235-4479-a3ce-26371f57ada2","block_type":"box","text":"classes.","page_number":99,"box":{"x":69,"y":725,"width":57,"height":9}},{"id":"d6358ab1-0756-4aca-b71f-2286b05b48f6","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":99,"box":{"x":101,"y":748,"width":774,"height":11}},{"id":"c57b4b84-2e85-4f0a-945f-9d5615a40601","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":99,"box":{"x":69,"y":763,"width":835,"height":11}},{"id":"69230201-adc5-46d7-9442-3c75d672910d","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":99,"box":{"x":70,"y":778,"width":815,"height":11}},{"id":"ba8aec08-1f91-4cb5-ad10-f0d5b8a5a515","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":99,"box":{"x":68,"y":793,"width":833,"height":11}},{"id":"002d11e9-4add-4700-911d-5255f82e36ac","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":99,"box":{"x":69,"y":808,"width":839,"height":11}},{"id":"40e8b57e-b323-4f23-bbdb-21ad7221d847","block_type":"box","text":"also tend to have market prices and yields that are more volatile than PACs.","page_number":99,"box":{"x":69,"y":823,"width":541,"height":11}},{"id":"7d126cdb-bf25-4fb9-a397-cec05bbe6227","block_type":"box","text":"Adjustable Rate Mor tgage Securities.","page_number":99,"box":{"x":101,"y":846,"width":265,"height":11}},{"id":"4ab35cc2-9eb5-4d92-922e-9a495f67d828","block_type":"box","text":"Adjustable rate mor tgage securities (“ARMs”) are pass-through securities","page_number":99,"box":{"x":372,"y":846,"width":523,"height":11}},{"id":"45d83092-b7aa-44a5-b68a-c88d33c8b58c","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":99,"box":{"x":69,"y":861,"width":807,"height":11}},{"id":"e1c03945-8a8f-4b14-9a67-1af2f746400c","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":99,"box":{"x":68,"y":876,"width":835,"height":11}},{"id":"9ff3d6a4-d241-45bb-9141-328a8c2ad0ad","block_type":"box","text":"schedule of payments has been completed, the interest rates are subject to periodic adjustment based on changes","page_number":99,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"06c666c8-0bd2-4b6b-ad9a-fc9cc14bb909","block_type":"box","text":"to a designated benchmark index.","page_number":99,"box":{"x":68,"y":907,"width":241,"height":11}},{"id":"2b9ffe69-1b21-4542-a90c-f55919d724e9","block_type":"box","text":"II-53","page_number":99,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"40e1622a-ddc9-4e2a-8ce6-12527aca34d0","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":99,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b3eb2af7-1de7-4fdb-853c-0fa63340a4f0","block_type":"box","text":"ARMs contain maximum and minimum rates beyond which the mor tgage interest rate may not vary over the","page_number":100,"box":{"x":101,"y":45,"width":767,"height":11}},{"id":"6ee102ee-93b6-445f-a6fa-cfa1c14f688f","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":100,"box":{"x":70,"y":60,"width":828,"height":11}},{"id":"523cc04c-5112-412a-a51b-70c951086ec8","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":100,"box":{"x":68,"y":75,"width":837,"height":11}},{"id":"d2566cfa-ddc3-4abb-9c4a-2131a0e61306","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":100,"box":{"x":69,"y":90,"width":830,"height":11}},{"id":"e9bc1555-f4d2-4ec3-a343-e4a8e0ef942b","block_type":"box","text":"of interest. In these circumstances, the market value of the ARM security will likely have fallen.","page_number":100,"box":{"x":69,"y":105,"width":676,"height":11}},{"id":"46af48ef-7cf5-4975-9793-c870bc1ed9a7","block_type":"box","text":"Cer tain ARMs contain limitations on changes in the required monthly payment. In the event that a monthly","page_number":100,"box":{"x":102,"y":128,"width":757,"height":11}},{"id":"f912090a-abf7-484e-a2f0-97ced1caac82","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":100,"box":{"x":70,"y":143,"width":822,"height":11}},{"id":"b1b66a6b-91c4-43fa-a60c-a595efdadd0c","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":100,"box":{"x":69,"y":158,"width":823,"height":11}},{"id":"99c6b017-6f7d-40fe-bfa2-e23c3491f000","block_type":"box","text":"instrument exceeds the sum of the interest accrued at the applicable mor tgage interest rate and the principal","page_number":100,"box":{"x":70,"y":173,"width":782,"height":11}},{"id":"349d25df-0489-4efb-b709-41ab5241b23a","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":100,"box":{"x":70,"y":188,"width":838,"height":12}},{"id":"c3f94e78-2b74-424a-b98e-04a8d03074d8","block_type":"box","text":"excess is then used to reduce the outstanding principal balance of the ARM.","page_number":100,"box":{"x":69,"y":203,"width":544,"height":12}},{"id":"0b367a8d-ce2d-4afa-aabe-210377e2e5e0","block_type":"box","text":"CMO Residuals.","page_number":100,"box":{"x":102,"y":226,"width":112,"height":9}},{"id":"5c143060-a306-4ec3-814e-fc49f808e2c0","block_type":"box","text":"CMO residuals are derivative mor tgage securities issued by agencies or instrumentalities of the","page_number":100,"box":{"x":221,"y":226,"width":682,"height":11}},{"id":"32c4b50b-f73b-4e5e-92dc-75ad6c58d93b","block_type":"box","text":"U.S. Government or by private originators of, or investors in, mor tgage loans, including savings and loan","page_number":100,"box":{"x":70,"y":241,"width":740,"height":11}},{"id":"ac9365a4-8c77-4a52-8370-ba6e0732c942","block_type":"box","text":"associations, homebuilders, mor tgage banks, commercial banks, investment banks, and special purpose entities of","page_number":100,"box":{"x":69,"y":256,"width":829,"height":12}},{"id":"848a1017-1a4a-4fe6-8640-f44376b9eba9","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":100,"box":{"x":68,"y":271,"width":826,"height":12}},{"id":"0f69259b-ef37-4a70-981b-1e48f132e434","block_type":"box","text":"required payments of principal and interest on the CMOs and second to pay the related administrative expenses and","page_number":100,"box":{"x":69,"y":286,"width":831,"height":12}},{"id":"6766f1c2-ca0f-44e7-bc1e-fae7cf77229c","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":100,"box":{"x":69,"y":302,"width":827,"height":11}},{"id":"3b06994a-ae03-4016-9f62-ab68a3cff823","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":100,"box":{"x":69,"y":317,"width":829,"height":11}},{"id":"30d0157e-f0d4-40ea-b970-bb73f1181604","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":100,"box":{"x":69,"y":332,"width":838,"height":11}},{"id":"3308ce29-d847-41f4-b66c-dfa62fc8e8a2","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":100,"box":{"x":69,"y":347,"width":825,"height":11}},{"id":"483c9abb-00a6-448b-927d-b0f2354a1692","block_type":"box","text":"of CMO, prevailing interest rates, the amount of administrative expenses and the prepayment experience on the","page_number":100,"box":{"x":69,"y":362,"width":798,"height":11}},{"id":"512454df-a338-4633-9e67-7b12884eba55","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":100,"box":{"x":69,"y":377,"width":813,"height":12}},{"id":"81af0130-1a48-425e-ac99-95fffc268fdc","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":100,"box":{"x":69,"y":392,"width":790,"height":12}},{"id":"c873e076-25ce-4a7c-86a3-edd57d5269d8","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":100,"box":{"x":69,"y":407,"width":805,"height":12}},{"id":"fca7681e-6c7d-4528-8409-c004e08814be","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":100,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"0dfb26d9-4cfa-45bc-84f3-a3cc8f68cefe","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":100,"box":{"x":70,"y":438,"width":831,"height":11}},{"id":"6871d087-a594-44b5-8072-ce295ef88d94","block_type":"box","text":"a CMO residual.","page_number":100,"box":{"x":69,"y":453,"width":112,"height":9}},{"id":"5400e44e-acdd-4bb6-a263-bbe0531a1799","block_type":"box","text":"CMO residuals are generally purchased and sold by institutional investors through one or more investment","page_number":100,"box":{"x":102,"y":476,"width":758,"height":11}},{"id":"b0e93aa7-4282-4c1b-beaf-492801f8544f","block_type":"box","text":"banking firms acting as brokers or dealers. Transactions in CMO residuals are generally completed only after careful","page_number":100,"box":{"x":69,"y":491,"width":827,"height":11}},{"id":"013021d4-954a-4648-b529-6a4818c38893","block_type":"box","text":"review of the characteristics of the securities in question. In addition, CMO residuals may or, pursuant to an","page_number":100,"box":{"x":69,"y":506,"width":769,"height":11}},{"id":"6b53de0f-797f-4670-953c-8e683c6ae5aa","block_type":"box","text":"exemption therefrom, may not have been registered under the Securities Act. Residual interests generally are junior","page_number":100,"box":{"x":69,"y":521,"width":825,"height":11}},{"id":"ebb06789-5005-42f5-903a-29bea3534dcb","block_type":"box","text":"to, and may be significantly more volatile than, “regular” CMO and REMIC interests. CMO residuals, whether or not","page_number":100,"box":{"x":68,"y":536,"width":820,"height":11}},{"id":"83f53518-a871-4f87-b344-273462780e1f","block_type":"box","text":"registered under the Securities Act, may be subject to cer tain restrictions on transferability.","page_number":100,"box":{"x":69,"y":551,"width":650,"height":11}},{"id":"78f7cc13-66ff-4eda-8a70-62d1ced3e894","block_type":"box","text":"Stripped Mor tgage-Backed Securities.","page_number":100,"box":{"x":102,"y":574,"width":267,"height":11}},{"id":"7bb05da6-0e06-4192-9d91-5166c553609c","block_type":"box","text":"A Fund may invest in stripped mor tgage-backed securities (“SMBSs”)","page_number":100,"box":{"x":375,"y":574,"width":493,"height":11}},{"id":"59ab6a40-bf5e-4da1-b98b-a025a8fd0496","block_type":"box","text":"issued by agencies or instrumentalities of the United States. SMBSs are derivative multi-class mor tgage-backed","page_number":100,"box":{"x":70,"y":589,"width":798,"height":11}},{"id":"47795217-22c5-457f-a46c-a61d01719439","block_type":"box","text":"securities. SMBS arrangements commonly involve two classes of securities that receive different propor tions of the","page_number":100,"box":{"x":69,"y":604,"width":826,"height":11}},{"id":"94eb17ae-c246-4638-9461-455d631d8471","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":100,"box":{"x":70,"y":619,"width":832,"height":11}},{"id":"d80f3f89-ebfb-4c30-8a89-66f49c0e92f6","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":100,"box":{"x":70,"y":634,"width":821,"height":12}},{"id":"02b23f5d-a677-428d-98cd-51dca22b4742","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":100,"box":{"x":68,"y":649,"width":826,"height":12}},{"id":"954fe139-d323-4c34-a5f7-a3d53f3491c8","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":100,"box":{"x":69,"y":664,"width":822,"height":11}},{"id":"ea7af12b-041a-46f8-9635-d564c9f7a780","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":100,"box":{"x":70,"y":680,"width":834,"height":11}},{"id":"e0f97ecd-fecc-4999-8456-0cb2ce7ba236","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":100,"box":{"x":68,"y":695,"width":800,"height":11}},{"id":"d51fb041-8b54-4683-a57e-86c8dfa962ac","block_type":"box","text":"related underlying assets, and a rapid rate of principal prepayments in excess of that considered in pricing the","page_number":100,"box":{"x":69,"y":710,"width":786,"height":11}},{"id":"2f3de668-a387-45d7-b87b-8bf90ba41fc2","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":100,"box":{"x":69,"y":725,"width":823,"height":11}},{"id":"ef111eac-042c-4f39-a89c-d11ce8b6a4db","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":100,"box":{"x":69,"y":740,"width":832,"height":11}},{"id":"af34b7c5-8f90-42c6-ab39-b9590a9396ad","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":100,"box":{"x":70,"y":755,"width":824,"height":11}},{"id":"e3ec4fba-01d9-4564-933f-18e06e217ee2","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":100,"box":{"x":70,"y":770,"width":800,"height":11}},{"id":"e1953397-a38a-4dde-8b90-07e1c0f4f5a7","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":100,"box":{"x":69,"y":785,"width":818,"height":12}},{"id":"6874c779-6436-4a12-b765-a7bcee10bc0d","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":100,"box":{"x":68,"y":801,"width":840,"height":11}},{"id":"919607ca-d713-4bbc-8d67-d81d7f18d553","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":100,"box":{"x":68,"y":816,"width":802,"height":11}},{"id":"5385a7d0-d705-424e-96f7-73f752036425","block_type":"box","text":"securities; as interest rates fall, presenting a greater risk of unanticipated prepayments of principal, the negative","page_number":100,"box":{"x":69,"y":831,"width":805,"height":11}},{"id":"2b581176-bfb5-4ede-925d-128ce8940652","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":100,"box":{"x":69,"y":846,"width":814,"height":11}},{"id":"f6672d6c-8d99-4980-a12e-b6889f5d1fa7","block_type":"box","text":"the inverse floating rate CMOs or the increased appreciation on the POs or fixed rate securities.","page_number":100,"box":{"x":68,"y":861,"width":683,"height":11}},{"id":"95bdb85e-d22b-4266-9482-befab15a2968","block_type":"box","text":"Tiered Index Bonds.","page_number":100,"box":{"x":103,"y":884,"width":138,"height":9}},{"id":"b60e3d9e-33d8-429a-82ba-e7a81502f654","block_type":"box","text":"Tiered index bonds are forms of mor tgage-related securities. The interest rate on a tiered","page_number":100,"box":{"x":247,"y":884,"width":638,"height":11}},{"id":"46682177-33ff-4036-bb23-fef3493e7709","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":100,"box":{"x":70,"y":899,"width":825,"height":11}},{"id":"ffa38fb1-6662-4760-9e29-1323a77578c8","block_type":"box","text":"II-54","page_number":100,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f94e73d9-5e07-4149-af97-bf6423f40ce4","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":100,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c76e7900-4f86-4db6-b32a-53c1c2c2be42","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":101,"box":{"x":70,"y":45,"width":827,"height":11}},{"id":"d68341cd-cbf8-4890-bacc-37fb7054faf3","block_type":"box","text":"rises above the “strike” rate, the interest rate of the tiered index bond will decrease. Thus, under these","page_number":101,"box":{"x":69,"y":60,"width":738,"height":10}},{"id":"096449a8-23c0-49a3-8a0b-6e2f5a0c0890","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":101,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"2ac0f025-2eaf-49a4-b6d6-a1c521660434","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":101,"box":{"x":70,"y":90,"width":836,"height":11}},{"id":"cf858d11-f9c9-445d-ac17-50f5e0445575","block_type":"box","text":"that of a fixed-rate bond.","page_number":101,"box":{"x":68,"y":105,"width":174,"height":9}},{"id":"94260148-4897-402c-9ead-a18854e32e9f","block_type":"box","text":"TBA Commitments.","page_number":101,"box":{"x":103,"y":128,"width":133,"height":9}},{"id":"88a5fa08-ba1d-4c37-ab56-5d026fcb81f1","block_type":"box","text":"Cer tain Funds may enter into “to be announced” or “TBA” commitments. TBA commitments","page_number":101,"box":{"x":243,"y":128,"width":653,"height":11}},{"id":"c45962c9-d084-44f2-b5db-3841f00cb242","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":101,"box":{"x":69,"y":143,"width":834,"height":11}},{"id":"c42772e7-1897-4041-a8c2-b0c44cc0fe99","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":101,"box":{"x":68,"y":158,"width":825,"height":11}},{"id":"17be0451-03ed-4fc9-9e40-551f123ddfbd","block_type":"box","text":"identified at the trade date. However, delivered securities must meet specified terms, including issuer, rate and","page_number":101,"box":{"x":70,"y":173,"width":793,"height":11}},{"id":"d348d23f-2bfe-4fb6-8e5b-30eadd32828d","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":101,"box":{"x":69,"y":188,"width":833,"height":12}},{"id":"4275bcb6-a956-4eb1-a892-c1c9f8b7143a","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":101,"box":{"x":70,"y":203,"width":804,"height":12}},{"id":"c98d42a7-6469-442e-a0d7-82767464ee7c","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":101,"box":{"x":69,"y":218,"width":779,"height":12}},{"id":"b0311965-307b-4bdb-a8cd-431ebc508ce1","block_type":"box","text":"required to be delivered. See “—When-Issued Securities, Delayed Delivery Securities and Forward Commitments”","page_number":101,"box":{"x":69,"y":234,"width":810,"height":11}},{"id":"c981b6f9-b2f6-4441-9ddb-64b3f43ff36e","block_type":"box","text":"below.","page_number":101,"box":{"x":69,"y":249,"width":43,"height":9}},{"id":"fac0e495-7b6e-465d-be98-7c0b6b71acac","block_type":"box","text":"Mor tgage Dollar Rolls.","page_number":101,"box":{"x":102,"y":272,"width":157,"height":11}},{"id":"3f655aa8-1bfe-4c7d-8dcf-50262c5d5e05","block_type":"box","text":"Cer tain Funds may invest in mor tgage dollar rolls. In a mor tgage dollar roll transaction, a","page_number":101,"box":{"x":266,"y":272,"width":634,"height":11}},{"id":"0a748ed6-b27f-422f-99e8-76144d6d6735","block_type":"box","text":"Fund sells mor tgage-backed securities for delivery in the current month and simultaneously contracts to repurchase","page_number":101,"box":{"x":70,"y":286,"width":825,"height":12}},{"id":"6230c90e-9e46-4fc7-9cb6-438f678599e4","block_type":"box","text":"substantially similar securities on a specified future date. The securities that are repurchased will bear the same","page_number":101,"box":{"x":69,"y":302,"width":805,"height":11}},{"id":"3e540361-f540-41ba-9d18-79c39a08a1ca","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":101,"box":{"x":70,"y":317,"width":817,"height":11}},{"id":"a17807c9-c4df-4450-9a4f-69c4a8385e39","block_type":"box","text":"different prepayment histories than those sold. During the period between the sale and repurchase, a Fund will not","page_number":101,"box":{"x":69,"y":332,"width":820,"height":11}},{"id":"6a7431fc-7548-4184-b492-daedd12e14c9","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":101,"box":{"x":69,"y":347,"width":827,"height":11}},{"id":"06a4f7cf-9a26-4a2d-ae1e-54838eedeaa9","block_type":"box","text":"additional instruments for the Fund, and the income from these investments will generate income for the Fund. If","page_number":101,"box":{"x":69,"y":362,"width":806,"height":11}},{"id":"cf9906ff-7090-4ae8-99ae-76f77f1867dc","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":101,"box":{"x":69,"y":377,"width":833,"height":12}},{"id":"e7880700-0890-4261-95e0-f4f4a536471e","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":101,"box":{"x":69,"y":392,"width":836,"height":11}},{"id":"5f24b5da-3a98-4c19-b8e1-ccbf2cfaa9bb","block_type":"box","text":"compared with what the per formance would have been without the use of dollar rolls.","page_number":101,"box":{"x":69,"y":407,"width":607,"height":11}},{"id":"5827ca58-3408-4528-b234-ca0ad1658576","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":101,"box":{"x":102,"y":430,"width":744,"height":11}},{"id":"dc2ef8d3-f0a9-45a5-932e-d9d399e046a5","block_type":"box","text":"subsequent purchase or sale of a substantially similar security in the forward market. Transactions in mor tgage","page_number":101,"box":{"x":69,"y":445,"width":796,"height":12}},{"id":"c5a571ea-95fe-4d71-b861-b17cd04e8634","block_type":"box","text":"dollar rolls may increase trading costs and por tfolio turnover.","page_number":101,"box":{"x":69,"y":460,"width":433,"height":12}},{"id":"442af2c4-43fd-4ef5-a237-7641b3db2aec","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":101,"box":{"x":102,"y":483,"width":795,"height":11}},{"id":"624ef497-014f-4479-ba9a-d11aa04eb289","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":101,"box":{"x":70,"y":498,"width":824,"height":11}},{"id":"48455f5e-b9f9-4c42-8056-df050dcb220a","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":101,"box":{"x":69,"y":513,"width":774,"height":12}},{"id":"afe7febd-3073-4f72-bb12-5ae45336a885","block_type":"box","text":"securities in the forward transaction.","page_number":101,"box":{"x":69,"y":528,"width":261,"height":9}},{"id":"fb95d3d3-b1ee-4bd5-8305-78545e79ae11","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":101,"box":{"x":101,"y":551,"width":785,"height":11}},{"id":"50c53491-470f-4c5f-bfae-0dde244db5f2","block_type":"box","text":"depend upon the Manager’s ability to correctly predict interest rates and prepayments. Dollar rolls involve the risk","page_number":101,"box":{"x":69,"y":566,"width":812,"height":11}},{"id":"ede02b2c-14dc-4e86-8b39-87af50d74ccb","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":101,"box":{"x":68,"y":581,"width":824,"height":11}},{"id":"21e02373-95a2-4aeb-bf4e-fcfac374e7c5","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":101,"box":{"x":69,"y":596,"width":824,"height":12}},{"id":"cfae2b35-ea2b-453c-a50e-d634adb5ec18","block_type":"box","text":"of the forward commitment. Dollar rolls are speculative techniques that can be deemed to involve leverage. There is","page_number":101,"box":{"x":69,"y":612,"width":828,"height":11}},{"id":"204439c1-3aab-4f63-9d5a-92285b39d2c9","block_type":"box","text":"no assurance that dollar rolls can be successfully employed.","page_number":101,"box":{"x":69,"y":627,"width":430,"height":11}},{"id":"50fab247-5bb3-4047-93fe-b244b63f8abf","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":101,"box":{"x":102,"y":649,"width":759,"height":12}},{"id":"74796e7c-5931-4f77-8478-c41eb217419a","block_type":"box","text":"securities (","page_number":101,"box":{"x":69,"y":665,"width":78,"height":11}},{"id":"eb2fb08f-5f77-45fc-9705-bb3775efb421","block_type":"box","text":"e.g.","page_number":101,"box":{"x":148,"y":666,"width":25,"height":10}},{"id":"e39bb2dc-9dd0-4ffa-ab53-9b4ca2a8fe76","block_type":"box","text":", dollar rolls and firm and standby commitments, including TBA commitments) and non-standard","page_number":101,"box":{"x":176,"y":664,"width":681,"height":12}},{"id":"e752b3c5-ec2c-48db-8ffb-1fe2fb87e0f4","block_type":"box","text":"settlement cycle securities notwithstanding the limitation on the issuance of senior securities in Section 18 of the","page_number":101,"box":{"x":69,"y":680,"width":813,"height":11}},{"id":"dc66097f-d37a-4de3-acc6-eee305a8473a","block_type":"box","text":"Investment Company Act, provided that the transaction meets the Delayed-Settlement Securities Provision (as","page_number":101,"box":{"x":70,"y":695,"width":783,"height":11}},{"id":"f6dce036-edfe-44ee-9040-d0a5d7dd1610","block_type":"box","text":"defined below under “—When-Issued Securities, Delayed Delivery Securities and Forward Commitments”). If a when","page_number":101,"box":{"x":69,"y":710,"width":832,"height":11}},{"id":"b9ba2845-b13d-468e-98a7-ce606ca1618d","block_type":"box","text":"issued, forward-settling or non-standard settlement cycle security does not satisfy the Delayed-Settlement Securities","page_number":101,"box":{"x":70,"y":725,"width":830,"height":11}},{"id":"325dbb64-51f9-4628-b32f-5c9de949fe3a","block_type":"box","text":"Provision, then it is treated as a Derivatives Transaction under Rule 18f-4. See “—Derivatives — Regulation of","page_number":101,"box":{"x":69,"y":740,"width":788,"height":11}},{"id":"fc2e777e-3ed7-4af4-9250-5ec48829f727","block_type":"box","text":"Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":101,"box":{"x":70,"y":755,"width":489,"height":11}},{"id":"f142fcee-a7d4-4bd9-9afa-cfe622ba4e76","block_type":"box","text":"Net Interest Margin (NIM) Securities.","page_number":101,"box":{"x":102,"y":778,"width":260,"height":11}},{"id":"15ca2004-3eae-4d18-a392-fd945859f1c5","block_type":"box","text":"A Fund may invest in net interest margin (“NIM”) securities. These","page_number":101,"box":{"x":368,"y":778,"width":473,"height":11}},{"id":"5446507e-855c-4a17-bbef-d697dff805b8","block_type":"box","text":"securities are derivative interest-only mor tgage securities structured off home equity loan transactions. NIM","page_number":101,"box":{"x":69,"y":793,"width":768,"height":11}},{"id":"c9be797c-eed3-4a55-9416-e47c222136dc","block_type":"box","text":"securities receive any “excess” interest computed after paying coupon costs, servicing costs and fees and any credit","page_number":101,"box":{"x":69,"y":808,"width":836,"height":11}},{"id":"a69ca357-a49b-41ab-9657-82a913748cc3","block_type":"box","text":"losses associated with the underlying pool of home equity loans. Like traditional stripped mor tgage-backed","page_number":101,"box":{"x":70,"y":823,"width":760,"height":12}},{"id":"5753dbe8-3ef5-437f-b580-5483164fcca4","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":101,"box":{"x":69,"y":839,"width":832,"height":11}},{"id":"8e2dacf5-723e-4171-8e4f-d08f1420df14","block_type":"box","text":"to the rate of principal payments (including prepayments) on the underlying home equity loans. NIM securities are","page_number":101,"box":{"x":68,"y":853,"width":810,"height":12}},{"id":"b0ae950a-be19-42d9-8797-d8989827374f","block_type":"box","text":"highly sensitive to credit losses on the underlying collateral and the timing in which those losses are taken.","page_number":101,"box":{"x":69,"y":869,"width":764,"height":11}},{"id":"8c0a20eb-49a3-4bae-a7c9-fb532fc05017","block_type":"box","text":"Municipal Investments.","page_number":101,"box":{"x":102,"y":891,"width":169,"height":11}},{"id":"1390df33-6619-49f1-a12f-8fa454b3c705","block_type":"box","text":"II-55","page_number":101,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"46c681cc-bb43-41a8-8cbf-e23fe97802b2","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":101,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9982a88d-523a-4cf8-aab1-c7c43b45e580","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":102,"box":{"x":102,"y":45,"width":763,"height":11}},{"id":"30c07647-992b-479f-b341-9f8eac4cdf37","block_type":"box","text":"United States and the District of Columbia and their political subdivisions, agencies and instrumentalities, the","page_number":102,"box":{"x":70,"y":60,"width":783,"height":11}},{"id":"7e53ee83-79e7-42e4-b2dd-fce61d9c710f","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":102,"box":{"x":70,"y":75,"width":833,"height":11}},{"id":"9432c4b0-978c-4a6c-b219-5ff82779ff70","block_type":"box","text":"income tax purposes (“Municipal Bonds”). Cer tain of the Municipal Funds may also invest in Municipal Bonds that","page_number":102,"box":{"x":70,"y":90,"width":813,"height":11}},{"id":"b687f50b-be8c-4f9d-b6f1-e5a125b2e513","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":102,"box":{"x":70,"y":105,"width":836,"height":11}},{"id":"6ae0bdcd-f4a5-4e01-8b15-49294ae94cb0","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":102,"box":{"x":69,"y":120,"width":779,"height":12}},{"id":"598063e7-e2b9-4964-96ea-acf13cf5a05c","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":102,"box":{"x":70,"y":135,"width":838,"height":11}},{"id":"67bb54b7-390e-42de-b543-1237cc4f777c","block_type":"box","text":"or by an agency or instrumentality thereof, if the Manager believes such securities to pay interest excludable from","page_number":102,"box":{"x":69,"y":150,"width":810,"height":12}},{"id":"297b1ac5-96b6-4cb1-8076-53bf051194d3","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":102,"box":{"x":68,"y":166,"width":834,"height":11}},{"id":"d2625bdf-902b-4dd5-8825-702f8c948e0f","block_type":"box","text":"or state and local personal proper ty taxes of the designated state (“Non-Municipal Tax-Exempt Securities”). Non","page_number":102,"box":{"x":69,"y":181,"width":801,"height":11}},{"id":"861e9923-1037-4a69-a96f-16120a4d42f7","block_type":"box","text":"Municipal Tax-Exempt Securities could include trust cer tificates or other instruments evidencing interest in one or","page_number":102,"box":{"x":70,"y":196,"width":807,"height":11}},{"id":"9bd689d7-73ce-4ee6-b8a6-4bec7b384ad5","block_type":"box","text":"more long-term municipal securities. Non-Municipal Tax-Exempt Securities also may include securities issued by other","page_number":102,"box":{"x":69,"y":211,"width":837,"height":11}},{"id":"f004426f-ce6b-4a3f-94ad-62ca2680e6f2","block_type":"box","text":"investment companies that invest in municipal bonds, to the extent such investments are permitted by applicable","page_number":102,"box":{"x":70,"y":226,"width":809,"height":11}},{"id":"2c76ef4c-ebf8-4cdd-92da-ccbd2ad28175","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":102,"box":{"x":70,"y":241,"width":826,"height":11}},{"id":"a8624300-8099-48f0-b3cf-09a97a4ec94e","block_type":"box","text":"purposes will be considered “Municipal Bonds” for purposes of a Municipal Fund’s investment objective and policies.","page_number":102,"box":{"x":70,"y":256,"width":834,"height":11}},{"id":"669a9338-dd56-4b47-a32a-13c811fb1069","block_type":"box","text":"Non-Municipal Tax-Exempt Securities that pay interest excludable from gross income for purposes of U.S. federal","page_number":102,"box":{"x":70,"y":271,"width":800,"height":12}},{"id":"201baf5e-8dcb-44df-a992-c22444b1072f","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":102,"box":{"x":70,"y":286,"width":819,"height":12}},{"id":"b36c1962-0edd-41c3-8eef-c6a8f03aa275","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":102,"box":{"x":69,"y":302,"width":805,"height":11}},{"id":"7ea19c5e-cf42-4c9d-9be9-735ecfd4a33e","block_type":"box","text":"purposes of the investment objective and policies of each of California Municipal Oppor tunities Fund, New Jersey","page_number":102,"box":{"x":70,"y":317,"width":805,"height":11}},{"id":"08fed024-200a-4829-b56c-e870162cafb6","block_type":"box","text":"Municipal Bond Fund, New York Municipal Oppor tunities Fund and Pennsylvania Municipal Bond Fund.","page_number":102,"box":{"x":70,"y":332,"width":721,"height":11}},{"id":"2f0788a5-5f70-47fb-9e53-cad7bb60e53e","block_type":"box","text":"Risk Factors and Special Considerations Relating to Municipal Bonds.","page_number":102,"box":{"x":102,"y":355,"width":495,"height":11}},{"id":"1525d8dc-3e0e-4806-b7d4-9dcdeacba8f9","block_type":"box","text":"The risks and special considerations","page_number":102,"box":{"x":603,"y":355,"width":260,"height":11}},{"id":"2fd8ce86-0493-4e66-86fc-8052455a4601","block_type":"box","text":"involved in investment in Municipal Bonds vary with the types of instruments being acquired. Investments in Non","page_number":102,"box":{"x":70,"y":370,"width":806,"height":11}},{"id":"7b3e4cbc-019d-405a-b765-9cb8686c5612","block_type":"box","text":"Municipal Tax-Exempt Securities may present similar risks, depending on the par ticular product. Cer tain municipal","page_number":102,"box":{"x":70,"y":385,"width":810,"height":11}},{"id":"1dba55af-a621-48ac-8624-2230ec48d311","block_type":"box","text":"instruments in which a Fund may invest may be characterized as derivatives.","page_number":102,"box":{"x":70,"y":400,"width":544,"height":11}},{"id":"38b1034a-9329-489c-8901-88fefa370796","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":102,"box":{"x":101,"y":423,"width":799,"height":11}},{"id":"edab9346-64d1-49ac-8260-6f38e5edad1e","block_type":"box","text":"legislation or litigation, including legislation or litigation that changes the taxation of Municipal Bonds or the rights of","page_number":102,"box":{"x":70,"y":438,"width":829,"height":11}},{"id":"0a57ac43-33c1-4cc6-845d-868427a8983d","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":102,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"4b0070cd-3e73-401d-bad4-a0a2727e5dc9","block_type":"box","text":"U.S. Bankruptcy Code governing such bankruptcies are unclear. Fur ther, the application of state law to Municipal","page_number":102,"box":{"x":70,"y":468,"width":802,"height":11}},{"id":"e5bf0dc4-4282-4a50-a237-5e683da945b1","block_type":"box","text":"Bond issuers could produce varying results among the states or among Municipal Bond issuers within a state. These","page_number":102,"box":{"x":70,"y":483,"width":834,"height":11}},{"id":"31a4578f-520a-4f42-990b-2e48ff02214e","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":102,"box":{"x":69,"y":498,"width":761,"height":11}},{"id":"00cf9f49-f6e4-47dc-9f46-e547836b60b0","block_type":"box","text":"II-56","page_number":102,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7dee8511-a045-45ba-b9c5-c2f6b4f562af","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":102,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e70e9003-5f02-48ba-a511-07f9707983e8","block_type":"box","text":"Description of Municipal Bonds.","page_number":103,"box":{"x":70,"y":45,"width":224,"height":11}},{"id":"94beefbd-b078-455a-aa73-2fbebe586560","block_type":"box","text":"Municipal Bonds include debt obligations issued to obtain funds for various public purposes, including the","page_number":103,"box":{"x":102,"y":67,"width":754,"height":12}},{"id":"ca968aec-b826-4cd4-970b-a79aeec69fd9","block_type":"box","text":"construction of a wide range of public facilities, refunding of outstanding obligations and obtaining funds for general","page_number":103,"box":{"x":69,"y":82,"width":824,"height":12}},{"id":"b46ded52-09f1-4010-9dfb-f5ac18c6a7ab","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":103,"box":{"x":69,"y":98,"width":836,"height":11}},{"id":"e52bae7c-8be0-4851-be48-95fa1abf7543","block_type":"box","text":"by or on behalf of public authorities to finance various privately owned or operated facilities, including cer tain","page_number":103,"box":{"x":69,"y":113,"width":776,"height":11}},{"id":"54fe403b-bdca-4a01-9eba-c8f2f44ba7ed","block_type":"box","text":"facilities for the local furnishing of electric energy or gas, sewage facilities, solid waste disposal facilities and other","page_number":103,"box":{"x":68,"y":128,"width":822,"height":11}},{"id":"29502b6f-1c03-4e21-8e36-80dc4078af32","block_type":"box","text":"specialized facilities. Such obligations are included within the term Municipal Bonds if the interest paid thereon is","page_number":103,"box":{"x":69,"y":143,"width":810,"height":11}},{"id":"385380cd-e87c-46e4-85ad-04414f698b34","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":103,"box":{"x":69,"y":158,"width":808,"height":11}},{"id":"b64e689d-38ee-4d8e-ace8-2a846d4d698b","block_type":"box","text":"types of private activity bonds, the proceeds of which are used for the construction, equipment or improvement of","page_number":103,"box":{"x":68,"y":173,"width":812,"height":11}},{"id":"e570a061-d180-4e76-a579-b5bf020121fe","block_type":"box","text":"privately operated industrial or commercial facilities, may constitute Municipal Bonds, although the current U.S.","page_number":103,"box":{"x":70,"y":188,"width":792,"height":12}},{"id":"faa33c33-c972-4209-8792-37cd7103405f","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":103,"box":{"x":68,"y":203,"width":835,"height":12}},{"id":"e2d63435-fcb5-464b-a481-41b57f6eea34","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":103,"box":{"x":68,"y":218,"width":840,"height":12}},{"id":"671c60e3-55f3-41d4-a336-0cc7a1d3b41c","block_type":"box","text":"obligation” and “revenue” or “special obligation” bonds, which latter category includes private activity bonds (“PABs”)","page_number":103,"box":{"x":69,"y":234,"width":838,"height":11}},{"id":"12a42bca-d771-4765-9990-34423e5683dd","block_type":"box","text":"(or “industrial development bonds” under pre-1986 law).","page_number":103,"box":{"x":69,"y":249,"width":401,"height":11}},{"id":"62e9f4c4-3aed-44d2-8f94-681f83905013","block_type":"box","text":"General Obligation Bonds.","page_number":103,"box":{"x":102,"y":272,"width":184,"height":11}},{"id":"7e1de449-f17b-40d7-82c2-b4708842427a","block_type":"box","text":"General obligation bonds are secured by the issuer’s pledge of its full faith, credit and","page_number":103,"box":{"x":292,"y":271,"width":613,"height":12}},{"id":"9e8adae1-059d-4f7b-abda-b051b2eafc9a","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":103,"box":{"x":68,"y":286,"width":816,"height":12}},{"id":"038a732b-cb97-4380-af92-868e995270ab","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":103,"box":{"x":69,"y":302,"width":834,"height":11}},{"id":"ba6e52a6-b6f3-4db3-8ce8-27a2899a8b75","block_type":"box","text":"including potential erosion of its tax base due to population declines, natural disasters, declines in the state’s","page_number":103,"box":{"x":70,"y":317,"width":786,"height":11}},{"id":"17f504f6-cc40-4696-a8a6-90d0ff020fde","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":103,"box":{"x":70,"y":332,"width":835,"height":11}},{"id":"d1960b5a-9788-49e9-918b-d1a085207bae","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":103,"box":{"x":69,"y":347,"width":840,"height":11}},{"id":"dcbd5209-115e-472f-a4a9-e78b57efef70","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":103,"box":{"x":69,"y":362,"width":782,"height":11}},{"id":"612f73d6-3a57-4651-a0ed-0eabbf82c819","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":103,"box":{"x":68,"y":377,"width":791,"height":12}},{"id":"f79be547-f030-4b11-8104-cd2bfbaf11e6","block_type":"box","text":"repayment of principal when due is affected by the issuer’s maintenance of its tax base.","page_number":103,"box":{"x":69,"y":392,"width":630,"height":12}},{"id":"33575137-9878-4778-befd-f9067cd8ac57","block_type":"box","text":"Revenue Bonds.","page_number":103,"box":{"x":102,"y":415,"width":114,"height":9}},{"id":"555b240c-0d41-47f2-b3b5-0ada742ed29f","block_type":"box","text":"Revenue bonds are payable only from the revenues derived from a par ticular facility or class of","page_number":103,"box":{"x":223,"y":415,"width":676,"height":11}},{"id":"6cd0e28d-0102-4e7b-b9b5-cf21062b53f4","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":103,"box":{"x":68,"y":430,"width":791,"height":11}},{"id":"dc643501-e42f-4bc2-b2e1-0a6dd64f2d43","block_type":"box","text":"payments from the user of the facility being financed; accordingly, the timely payment of interest and the repayment","page_number":103,"box":{"x":70,"y":445,"width":824,"height":12}},{"id":"5eae842d-abdb-438e-a810-f8134e526a48","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":103,"box":{"x":69,"y":460,"width":798,"height":12}},{"id":"96bfa2c0-f945-4165-b210-c1c856a1103e","block_type":"box","text":"viability of such facility or such revenue source.","page_number":103,"box":{"x":68,"y":475,"width":336,"height":12}},{"id":"9bdc043a-acf0-4d61-8e7c-1fac1f48df23","block_type":"box","text":"Revenue bonds issued by state or local agencies to finance the development of low-income, multi-family housing","page_number":103,"box":{"x":102,"y":498,"width":801,"height":11}},{"id":"34009f4b-e541-4258-9234-9762522d326d","block_type":"box","text":"involve special risks in addition to those associated with municipal bonds generally, including that the underlying","page_number":103,"box":{"x":70,"y":514,"width":800,"height":11}},{"id":"3728e106-5dbd-4c8a-a060-8806c052c85e","block_type":"box","text":"proper ties may not generate sufficient income to pay expenses and interest costs. Such bonds are generally non","page_number":103,"box":{"x":70,"y":528,"width":810,"height":12}},{"id":"b378377a-3090-4c91-adcc-3ecfde2416bd","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":103,"box":{"x":69,"y":543,"width":830,"height":12}},{"id":"45d96e46-2bd6-41e8-a4a2-5cd99d42dc30","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":103,"box":{"x":70,"y":559,"width":828,"height":11}},{"id":"97171cd5-55c8-4c09-8ef4-53a8334046aa","block_type":"box","text":"and may be used to finance the construction of housing developments which, until completed and rented, do not","page_number":103,"box":{"x":69,"y":574,"width":804,"height":11}},{"id":"1b5745c8-6b7b-49f9-b2e6-6e8ed0ff9a09","block_type":"box","text":"generate income to pay interest. Increases in interest rates payable on senior obligations may make it more difficult","page_number":103,"box":{"x":68,"y":589,"width":830,"height":11}},{"id":"1ae1ecc5-1b96-4bf5-98c0-86cfafe7adbb","block_type":"box","text":"for issuers to meet payment obligations on subordinated bonds.","page_number":103,"box":{"x":68,"y":604,"width":457,"height":11}},{"id":"43f55ad2-8d66-4511-83e9-d2abe68c6531","block_type":"box","text":"PABs.","page_number":103,"box":{"x":102,"y":627,"width":38,"height":9}},{"id":"3d1d13c9-a2ee-434b-bc19-59ceaa6d0ea8","block_type":"box","text":"PABs are, in most cases, tax-exempt securities issued by states, municipalities or public authorities to","page_number":103,"box":{"x":147,"y":627,"width":730,"height":11}},{"id":"e42f81e0-7714-4b33-9424-69fe793f9c06","block_type":"box","text":"provide funds, usually through a loan or lease arrangement, to a private entity for the purpose of financing","page_number":103,"box":{"x":70,"y":642,"width":755,"height":11}},{"id":"fb72f663-4358-458f-bc0e-9919809dd122","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":103,"box":{"x":69,"y":657,"width":797,"height":11}},{"id":"1983206e-cc99-429e-97a6-6c9980924d00","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":103,"box":{"x":69,"y":672,"width":793,"height":11}},{"id":"5c84c37a-55d3-44e6-af00-ed695af12bb1","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":103,"box":{"x":70,"y":687,"width":840,"height":11}},{"id":"5e3226b1-c3d7-4fa0-97b1-239a6ac26f17","block_type":"box","text":"such bonds. Therefore, an investor should understand that repayment of such bonds generally depends on the","page_number":103,"box":{"x":69,"y":702,"width":789,"height":12}},{"id":"f5c12bc2-4ddd-464b-814c-701df564354e","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":103,"box":{"x":69,"y":717,"width":832,"height":12}},{"id":"97abd988-51fa-4038-9f41-1599712f35b6","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":103,"box":{"x":69,"y":732,"width":802,"height":12}},{"id":"3ce95769-6e4c-4b19-813d-8d3e2b86e45d","block_type":"box","text":"many factors including the size of the entity, its capital structure, demand for its products or services, competition,","page_number":103,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"4a47d729-2c09-4e19-a7bb-887c30c0a21a","block_type":"box","text":"general economic conditions, government regulation and the entity’s dependence on revenues for the operation of","page_number":103,"box":{"x":68,"y":763,"width":816,"height":11}},{"id":"d10c1f45-38ed-4995-9ab8-541599671747","block_type":"box","text":"the par ticular facility being financed.","page_number":103,"box":{"x":68,"y":778,"width":258,"height":11}},{"id":"29f05ce1-6248-4266-bbcf-6f389299ca9a","block_type":"box","text":"Moral Obligation Bonds.","page_number":103,"box":{"x":102,"y":801,"width":169,"height":11}},{"id":"aa5d4674-723c-4e4a-9bb3-fd4e5046d765","block_type":"box","text":"“Moral obligation” bonds are normally issued by special purpose public authorities. If an","page_number":103,"box":{"x":278,"y":801,"width":628,"height":11}},{"id":"78adfed2-8e82-4f4a-a965-5abd65d8ee23","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":103,"box":{"x":70,"y":816,"width":809,"height":11}},{"id":"1923132c-894e-47b7-a6f9-e71bfb68f518","block_type":"box","text":"commitment but not a legal obligation of the state or municipality that created the special purpose public authority","page_number":103,"box":{"x":69,"y":831,"width":816,"height":11}},{"id":"419de48c-6bc9-4132-bd6d-fbb7a25cd60b","block_type":"box","text":"that issued the bonds.","page_number":103,"box":{"x":68,"y":846,"width":160,"height":9}},{"id":"fd4a8f42-b11c-4918-9a41-fc059b423243","block_type":"box","text":"Municipal Notes.","page_number":103,"box":{"x":102,"y":869,"width":118,"height":11}},{"id":"f318edb7-f910-4d34-83eb-46b679e536cb","block_type":"box","text":"Municipal notes are shor ter term municipal debt obligations. They may provide interim financing","page_number":103,"box":{"x":227,"y":869,"width":683,"height":11}},{"id":"4e6afc15-82a8-4148-b34b-610c8645ba47","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":103,"box":{"x":70,"y":884,"width":807,"height":11}},{"id":"76d05343-7afa-4ae3-9b68-103a49cbd6dd","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":103,"box":{"x":69,"y":899,"width":739,"height":11}},{"id":"44441799-593b-42d5-be91-4624c34e516e","block_type":"box","text":"II-57","page_number":103,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ff978d0d-70be-4bf0-854f-274b524d72e1","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":103,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e87981ea-e112-4447-8db8-fa49907193c8","block_type":"box","text":"Municipal Commercial Paper.","page_number":104,"box":{"x":102,"y":45,"width":205,"height":11}},{"id":"81e93603-54a7-43c9-9a66-35c8d60e9618","block_type":"box","text":"Municipal commercial paper is generally unsecured and issued to meet shor t-term","page_number":104,"box":{"x":314,"y":45,"width":586,"height":11}},{"id":"1d867c6d-5d02-4de6-a115-59c7dc62b7df","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":104,"box":{"x":68,"y":60,"width":767,"height":11}},{"id":"f9c0f1ce-54c0-472b-94b3-58c6d230db55","block_type":"box","text":"bankruptcy, unsecured creditors are repaid only after the secured creditors out of the assets, if any, that remain.","page_number":104,"box":{"x":69,"y":75,"width":803,"height":11}},{"id":"baa33e84-fe71-4d3b-9eb4-5e3d4fb203b1","block_type":"box","text":"Municipal Lease Obligations.","page_number":104,"box":{"x":102,"y":98,"width":203,"height":11}},{"id":"e1b40b3c-2734-4d4f-97d7-3404b982a2f0","block_type":"box","text":"Also included within the general category of Municipal Bonds are cer tificates of","page_number":104,"box":{"x":311,"y":98,"width":566,"height":11}},{"id":"c3db4d46-55c5-4b05-bd39-fe0be5a884a2","block_type":"box","text":"par ticipation (“COPs”) issued by government authorities or entities to finance the acquisition or construction of","page_number":104,"box":{"x":70,"y":113,"width":791,"height":11}},{"id":"15a229d8-6229-4768-8faa-d3abb75867b7","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":104,"box":{"x":69,"y":128,"width":840,"height":11}},{"id":"0218cfa4-f61f-4641-92b7-b39542e24fe2","block_type":"box","text":"conditional sales contract (hereinafter collectively called “lease obligations”) relating to such equipment, land or","page_number":104,"box":{"x":69,"y":143,"width":800,"height":11}},{"id":"f1399371-7d4f-4505-b6b2-f046850cf8bc","block_type":"box","text":"facilities. Municipal leases, like other municipal debt obligations, are subject to the risk of non-payment. Although","page_number":104,"box":{"x":68,"y":158,"width":809,"height":11}},{"id":"8e3154a2-3943-4a45-ab3c-d1a1e77dd322","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":104,"box":{"x":70,"y":173,"width":820,"height":11}},{"id":"d95534f0-ef9c-4321-85e7-f05c3acd52a3","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":104,"box":{"x":70,"y":188,"width":808,"height":12}},{"id":"060bda41-8bbb-460f-806c-66ae0e539866","block_type":"box","text":"payments due under the lease obligation. However, cer tain lease obligations contain “non-appropriation” clauses,","page_number":104,"box":{"x":70,"y":204,"width":809,"height":11}},{"id":"08bd3467-307d-42b2-810d-8d115341bcb9","block_type":"box","text":"which provide that the issuer has no obligation to make lease or installment purchase payments in future years","page_number":104,"box":{"x":68,"y":218,"width":795,"height":12}},{"id":"d0918849-a425-4eb8-8b73-125f83eb636d","block_type":"box","text":"unless money is appropriated for such purpose on a yearly basis. Although “non-appropriation” lease obligations are","page_number":104,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"8e73ae84-2a3d-4482-a85f-737bf9c2b6f6","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":104,"box":{"x":69,"y":249,"width":810,"height":11}},{"id":"e1520c26-a198-4efe-84db-ceb110500b4f","block_type":"box","text":"securities represent a type of financing that has not yet developed the depth of marketability associated with more","page_number":104,"box":{"x":69,"y":264,"width":817,"height":11}},{"id":"5f6ad4bc-05c3-465f-b531-6d1ae856de79","block_type":"box","text":"conventional securities. Cer tain investments in lease obligations may be illiquid.","page_number":104,"box":{"x":69,"y":279,"width":572,"height":11}},{"id":"4320afc4-3ebc-4c62-a642-7194b73ecbdf","block_type":"box","text":"The ability of issuers of municipal leases to make timely lease payments may be adversely impacted in general","page_number":104,"box":{"x":101,"y":302,"width":791,"height":11}},{"id":"0caf7a3e-b5e3-4684-b42a-c51c64e87f2b","block_type":"box","text":"economic downturns and as relative governmental cost burdens are allocated and reallocated among federal, state","page_number":104,"box":{"x":69,"y":317,"width":822,"height":11}},{"id":"ef4e3410-72d4-4081-ad50-1aaacecaa691","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":104,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"26c78cd1-70d7-4df5-9c9d-91bb714084d2","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":104,"box":{"x":69,"y":347,"width":798,"height":11}},{"id":"0c98b1bc-8ce4-4aac-a0fe-91b78b866c2a","block_type":"box","text":"Fund. Issuers of municipal securities might seek protection under the bankruptcy laws. In the event of bankruptcy of","page_number":104,"box":{"x":70,"y":362,"width":828,"height":11}},{"id":"91f72026-6c87-4565-8945-c0a4b4e912e9","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":104,"box":{"x":69,"y":377,"width":833,"height":11}},{"id":"1a7daea5-89f7-46bf-866e-d1e259a79612","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":104,"box":{"x":69,"y":393,"width":807,"height":11}},{"id":"c971a7a3-9094-40a1-b290-df5dbf35edab","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":104,"box":{"x":68,"y":407,"width":835,"height":12}},{"id":"dbd9eb43-7dca-4514-b4bf-1523af963150","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":104,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"160edc6a-e200-467c-b6b0-c42db40cd1ba","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":104,"box":{"x":69,"y":438,"width":829,"height":11}},{"id":"76895aa7-426d-4cf2-b4a2-4df87a0f5dbc","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":104,"box":{"x":68,"y":453,"width":793,"height":11}},{"id":"8e2f47aa-c978-4f15-a622-9200d11bebc7","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":104,"box":{"x":70,"y":468,"width":810,"height":11}},{"id":"fc3bea41-a3e9-4f5d-8c82-586627cc1fa0","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":104,"box":{"x":70,"y":483,"width":820,"height":11}},{"id":"199189fc-cc26-44e8-bc6e-be7cae33a646","block_type":"box","text":"exercise its rights by taking possession of such assets, because as a regulated investment company a Fund is","page_number":104,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"6d7d3e54-b0ab-4607-8d45-bf7e14262d21","block_type":"box","text":"subject to cer tain limitations on its investments and on the nature of its income.","page_number":104,"box":{"x":69,"y":513,"width":574,"height":11}},{"id":"28e323d6-f901-4449-a197-981d6f92a929","block_type":"box","text":"Tender Option Bonds.","page_number":104,"box":{"x":103,"y":536,"width":150,"height":11}},{"id":"9dc1f91b-8250-410f-9d43-9c930346b44e","block_type":"box","text":"Cer tain Funds may invest in residual inverse floating rate interest tender option bonds","page_number":104,"box":{"x":260,"y":536,"width":613,"height":11}},{"id":"2d817bfd-417e-4d94-8c70-c1729073752b","block_type":"box","text":"(“TOB Residuals”), which are derivative interests in Municipal Bonds. The TOB Residuals in which the Funds will","page_number":104,"box":{"x":69,"y":551,"width":796,"height":11}},{"id":"12287780-034d-451d-8550-98ccfa6221bc","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":104,"box":{"x":70,"y":566,"width":834,"height":11}},{"id":"feef01da-8e13-46f3-bc3d-8c8c87f9c7c2","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":104,"box":{"x":68,"y":581,"width":807,"height":11}},{"id":"7ccb2edf-0af2-45dc-aaa5-866c2c132c8f","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":104,"box":{"x":69,"y":596,"width":836,"height":12}},{"id":"e0084c58-a437-4487-b559-36312115e964","block_type":"box","text":"the potential for yields exceeding the yields available on fixed rate Municipal Bonds with comparable credit quality.","page_number":104,"box":{"x":68,"y":612,"width":814,"height":11}},{"id":"f02801f2-39c2-489d-aeaa-9a8ebe9a69de","block_type":"box","text":"The Funds may invest in TOB Residuals for the purpose of using economic leverage.","page_number":104,"box":{"x":68,"y":627,"width":598,"height":11}},{"id":"0451ec8d-bbf4-454f-8a22-a7735b7c2a43","block_type":"box","text":"TOB Residuals represent beneficial interests in a special purpose trust formed for the purpose of holding","page_number":104,"box":{"x":101,"y":649,"width":751,"height":12}},{"id":"0357ccb0-7b59-4842-acb8-c5da6e448c80","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":104,"box":{"x":70,"y":664,"width":786,"height":12}},{"id":"2effcd91-7827-4944-aeab-b73f97ee4ce3","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":104,"box":{"x":69,"y":680,"width":813,"height":11}},{"id":"fb78f85f-954a-4442-9d18-0fe19dad5b85","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":104,"box":{"x":68,"y":695,"width":799,"height":11}},{"id":"c2e6aacd-e27f-46b1-ba56-c2cd75615e1c","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":104,"box":{"x":70,"y":710,"width":830,"height":11}},{"id":"b2b5deed-1da5-4064-acb8-aa3e09eb916f","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":104,"box":{"x":68,"y":725,"width":828,"height":11}},{"id":"759f914f-222e-4623-9642-d9ad66dfe712","block_type":"box","text":"Liquidity Provider (defined below) which allows holders to tender their position at par (plus accrued interest). A Fund,","page_number":104,"box":{"x":70,"y":740,"width":826,"height":11}},{"id":"a2050836-d2b9-424c-9801-5ce7057d3fae","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":104,"box":{"x":69,"y":755,"width":768,"height":11}},{"id":"5a669552-2795-4b03-8a6a-bde1e9c3f36b","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":104,"box":{"x":70,"y":770,"width":825,"height":11}},{"id":"a680157f-0408-458b-94be-396d279a1f7f","block_type":"box","text":"cer tain transaction costs, and typically will invest the cash to purchase additional Municipal Bonds or other","page_number":104,"box":{"x":69,"y":786,"width":764,"height":11}},{"id":"ccfe4449-8c0c-45ec-bfa4-1bd0a5b5b317","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":104,"box":{"x":70,"y":801,"width":838,"height":11}},{"id":"77ab8581-ba1a-4a73-8437-3288a22cfd85","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":104,"box":{"x":68,"y":816,"width":810,"height":11}},{"id":"a76b6088-101b-4980-9e62-5721b9ea366e","block_type":"box","text":"TOB Trust in exchange for a propor tionate amount of the Municipal Bonds owned by the TOB Trust.","page_number":104,"box":{"x":68,"y":831,"width":704,"height":11}},{"id":"debc9327-5520-4d9c-82e1-cdb62a8a8442","block_type":"box","text":"Other BlackRock-advised funds may contribute Municipal Bonds to a TOB Trust into which a Fund has contributed","page_number":104,"box":{"x":102,"y":853,"width":804,"height":12}},{"id":"16d85812-940f-41a7-ad83-b2b91299bbcc","block_type":"box","text":"Municipal Bonds. If multiple BlackRock-advised funds par ticipate in the same TOB Trust, the economic rights and","page_number":104,"box":{"x":70,"y":869,"width":805,"height":11}},{"id":"babb69af-2875-445d-bb8c-ffc27c89f4c7","block_type":"box","text":"obligations under the TOB Residual will generally be shared among the funds ratably in propor tion to their","page_number":104,"box":{"x":69,"y":884,"width":752,"height":11}},{"id":"b8b2012f-22e0-48f6-b432-9fe11d498232","block_type":"box","text":"par ticipation in the TOB Trust.","page_number":104,"box":{"x":70,"y":899,"width":211,"height":11}},{"id":"e410a754-f734-428c-95d2-031bb69f69bf","block_type":"box","text":"II-58","page_number":104,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"4a612cf3-b157-4031-a389-e386bcc8ff4b","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":104,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"27d915d4-db92-4274-a308-e67edc25ddd3","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":105,"box":{"x":101,"y":45,"width":802,"height":11}},{"id":"25237959-22c6-400a-906b-2c5dca3a059e","block_type":"box","text":"Municipal Bonds transferred are lower grade Municipal Bonds, the TOB Trust transaction includes a credit","page_number":105,"box":{"x":70,"y":60,"width":753,"height":11}},{"id":"b1bfd162-8f62-4489-be7d-7e87d42467bf","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":105,"box":{"x":69,"y":75,"width":829,"height":11}},{"id":"fb7b5724-8346-41ac-80c6-d5a93456d319","block_type":"box","text":"a credit enhancement provider. The TOB Trust would be responsible for the payment of the credit enhancement fee","page_number":105,"box":{"x":69,"y":90,"width":819,"height":11}},{"id":"a1858f2a-2fe4-4dc7-848c-362b823b48e2","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":105,"box":{"x":69,"y":105,"width":802,"height":11}},{"id":"9c9f849b-dc36-408b-b944-0548e2c04eb9","block_type":"box","text":"interest made by the credit enhancement provider.","page_number":105,"box":{"x":70,"y":120,"width":357,"height":11}},{"id":"e828c0b1-6334-4077-a991-d48c4b2082a3","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":105,"box":{"x":101,"y":143,"width":807,"height":11}},{"id":"29267697-8744-409a-9dc7-7222584d61c5","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":105,"box":{"x":69,"y":158,"width":810,"height":11}},{"id":"e51b28e9-c317-4607-a43a-c2439b50573f","block_type":"box","text":"may withdraw a corresponding share of the Municipal Bonds from the TOB Trust. This transaction, in effect, creates","page_number":105,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"40606c4e-1d01-4e81-83e4-484ed720d9ae","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":105,"box":{"x":69,"y":188,"width":834,"height":11}},{"id":"19941ecb-93c4-47a1-b751-868949de600c","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":105,"box":{"x":70,"y":203,"width":797,"height":12}},{"id":"f9c16814-b8df-4c8b-aef1-2d8b927eefbe","block_type":"box","text":"impact of the Municipal Bonds’ return within the Fund (thereby creating leverage). The leverage within a TOB Trust","page_number":105,"box":{"x":70,"y":218,"width":809,"height":12}},{"id":"d3409296-68e5-4758-94aa-184514ec9339","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":105,"box":{"x":69,"y":234,"width":820,"height":11}},{"id":"ade9bb32-24e8-400b-a019-856bf37764ee","block_type":"box","text":"issues.","page_number":105,"box":{"x":70,"y":249,"width":49,"height":9}},{"id":"bb853971-43a4-42ef-81eb-da6a3657b876","block_type":"box","text":"A Fund may invest in highly leveraged TOB Residuals. A TOB Residual generally is considered highly leveraged if","page_number":105,"box":{"x":101,"y":271,"width":795,"height":12}},{"id":"0a1ea17c-ca9c-4d25-baec-6a2f7944da37","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":105,"box":{"x":68,"y":286,"width":833,"height":12}},{"id":"81162923-a5cd-4ea1-84f5-45fb76cd839a","block_type":"box","text":"Municipal Bonds owned by the TOB Trust.","page_number":105,"box":{"x":70,"y":302,"width":293,"height":11}},{"id":"a3fc1e40-6e50-4e85-b7ac-aac8b99c3787","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":105,"box":{"x":101,"y":324,"width":802,"height":11}},{"id":"4593cf70-f0b9-409a-89be-a68f24828635","block_type":"box","text":"events (“TOTEs”) and mandatory termination events (“MTEs”), as defined in the TOB Trust agreements. TOTEs","page_number":105,"box":{"x":69,"y":339,"width":788,"height":12}},{"id":"032bb517-b88e-4f59-9ab2-19e4f2026279","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":105,"box":{"x":70,"y":355,"width":836,"height":11}},{"id":"9345c6ac-8467-4b26-9c0c-90528c636c0d","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":105,"box":{"x":70,"y":370,"width":819,"height":11}},{"id":"1fce9393-0260-428a-aaa7-22bc235d63bf","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":105,"box":{"x":70,"y":385,"width":833,"height":11}},{"id":"3a7259f2-09a3-40bb-be47-7064bc09f15b","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":105,"box":{"x":68,"y":400,"width":834,"height":11}},{"id":"6387c920-3aa9-4048-aaf4-2dc3564a2216","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":105,"box":{"x":70,"y":415,"width":838,"height":11}},{"id":"33a21cab-b6a5-4efb-aac1-f4f9df108d45","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":105,"box":{"x":68,"y":430,"width":831,"height":11}},{"id":"77b325c2-ebc0-4bb1-9b76-12980039f6d7","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":105,"box":{"x":70,"y":445,"width":823,"height":12}},{"id":"aa1d869b-67a7-4a48-b7f7-a712088c10d0","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":105,"box":{"x":69,"y":460,"width":839,"height":12}},{"id":"61162f1c-e9c3-47ec-bd83-a72f8b81120f","block_type":"box","text":"the holders of the TOB Floaters would be paid senior to the TOB Residual holders (","page_number":105,"box":{"x":68,"y":475,"width":589,"height":12}},{"id":"321d0919-07f6-4157-810c-e35781dc5ae3","block_type":"box","text":"i.e.","page_number":105,"box":{"x":659,"y":476,"width":21,"height":8}},{"id":"c7038b68-e193-433f-a414-2fd75bc260a2","block_type":"box","text":", the Fund). In contrast, in the","page_number":105,"box":{"x":682,"y":476,"width":211,"height":11}},{"id":"cbe53938-ca65-4827-b298-bad15ab0b8d1","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":105,"box":{"x":69,"y":491,"width":822,"height":11}},{"id":"e4da8e7b-893a-413a-aa6c-926534c2a818","block_type":"box","text":"rata in propor tion to the respective face values of their cer tificates.","page_number":105,"box":{"x":69,"y":506,"width":479,"height":11}},{"id":"37400aa1-548b-464d-b60c-fb7c192b4019","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":105,"box":{"x":101,"y":529,"width":797,"height":11}},{"id":"dc3adce8-c1bb-48c7-94ad-c87f20d26307","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":105,"box":{"x":69,"y":543,"width":815,"height":12}},{"id":"622a7784-9e05-41fd-8496-5ed113622491","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":105,"box":{"x":68,"y":559,"width":828,"height":11}},{"id":"07a7b4e4-e710-46b0-9af6-ddc8c468b39d","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":105,"box":{"x":69,"y":574,"width":828,"height":11}},{"id":"362f6667-7ecc-434e-8263-804495ec3a41","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":105,"box":{"x":68,"y":589,"width":815,"height":11}},{"id":"012a5cd4-1fb2-426a-9b90-305121fc4fff","block_type":"box","text":"the Liquidity Provider to purchase the tendered TOB Floaters.","page_number":105,"box":{"x":68,"y":604,"width":434,"height":11}},{"id":"9ecde286-689a-48a1-8539-cb290ea0a8d6","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":105,"box":{"x":101,"y":627,"width":772,"height":11}},{"id":"ecbed1f1-0b23-4827-bbdb-ea67b3fd7ace","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":105,"box":{"x":70,"y":642,"width":831,"height":11}},{"id":"42f49a24-b8c0-4ac4-9110-a4ee7da7ca63","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":105,"box":{"x":69,"y":657,"width":785,"height":11}},{"id":"a3f4c83f-191a-4057-a57d-6b33462864e7","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":105,"box":{"x":70,"y":672,"width":831,"height":11}},{"id":"609e6852-f0a0-46cc-902f-ada0b15ae591","block_type":"box","text":"enter into a reimbursement agreement with the Liquidity Provider pursuant to which the Fund is required to reimburse","page_number":105,"box":{"x":69,"y":687,"width":836,"height":11}},{"id":"51a0b457-c336-416e-b8d7-455814699673","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":105,"box":{"x":68,"y":702,"width":836,"height":11}},{"id":"ee3a18f3-da5f-499f-af35-fd61639db71e","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":105,"box":{"x":68,"y":717,"width":788,"height":12}},{"id":"51c85ef2-d9aa-4e87-979d-5536b685e3ca","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":105,"box":{"x":70,"y":733,"width":823,"height":11}},{"id":"adce4364-5ad5-428f-a3b6-98ab1d8c83d8","block_type":"box","text":"Trust.","page_number":105,"box":{"x":68,"y":748,"width":39,"height":9}},{"id":"19cdafed-1f38-48a9-b32e-a3d618c3454a","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":105,"box":{"x":102,"y":770,"width":784,"height":12}},{"id":"c35a93fc-52e8-45fd-b297-990401cbb4da","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":105,"box":{"x":70,"y":785,"width":830,"height":12}},{"id":"cb35ae0d-37dd-49a5-973e-d4698d291b34","block_type":"box","text":"are presented as liabilities in the Fund’s Statement of Assets and Liabilities. Interest income from the underlying","page_number":105,"box":{"x":69,"y":801,"width":806,"height":11}},{"id":"fd4292c6-7653-48fa-935d-6b8fe2dcee48","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":105,"box":{"x":70,"y":816,"width":831,"height":11}},{"id":"90867dab-004e-44de-b35a-cdf8b426ed10","block_type":"box","text":"expenses related to remarketing, administration, trustee and other services to a TOB Trust are repor ted as expenses","page_number":105,"box":{"x":69,"y":831,"width":837,"height":11}},{"id":"5a84ae5a-e4c2-499c-b8e8-f8e4c255a12e","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":105,"box":{"x":69,"y":846,"width":832,"height":11}},{"id":"ac9f1d99-84c1-46a8-a106-c5921ae2c40b","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":105,"box":{"x":70,"y":861,"width":728,"height":9}},{"id":"81af8ba0-735c-4f45-9cb0-8b8c2f45a56a","block_type":"box","text":"For TOB Floaters, generally, the interest rate earned will be based upon the market rates for Municipal Bonds","page_number":105,"box":{"x":102,"y":884,"width":776,"height":11}},{"id":"606411b1-28cb-4e87-b483-ccb0d86c74f7","block_type":"box","text":"with maturities or remarketing provisions that are comparable in duration to the periodic interval of the tender option.","page_number":105,"box":{"x":68,"y":899,"width":837,"height":11}},{"id":"e2e9dcbf-bb87-499b-8ef4-c36c35b0b9fd","block_type":"box","text":"II-59","page_number":105,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"4c3a00f6-7e60-4624-9d12-9103c8da9c8c","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":105,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5ec37a5e-a3eb-4ece-83e7-33b511de0f20","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":106,"box":{"x":69,"y":45,"width":836,"height":11}},{"id":"d60a8709-3358-4b55-ac9c-871b2cc8fbba","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":106,"box":{"x":70,"y":60,"width":809,"height":11}},{"id":"0ba529df-d90f-4c22-9313-db49d764b8e4","block_type":"box","text":"financial institution furnishing the liquidity facility as well as the credit strength of that institution. The risk associated","page_number":106,"box":{"x":68,"y":75,"width":836,"height":11}},{"id":"8e1a61f8-ab99-4241-b2a0-ced4a9e20d92","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":106,"box":{"x":68,"y":90,"width":835,"height":11}},{"id":"cfed9aec-a654-4689-9d68-cd4dcec4924a","block_type":"box","text":"the credit ratings, and thus the perceived reliability and creditwor thiness, of many major financial institutions, some","page_number":106,"box":{"x":68,"y":105,"width":827,"height":11}},{"id":"e0d45224-7561-40d8-9cef-59bdcec70bc7","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":106,"box":{"x":69,"y":120,"width":790,"height":11}},{"id":"a750605e-7c64-4403-96d7-946540f96cbc","block_type":"box","text":"Floaters as investments, which could impair the viability or availability of TOB Trusts.","page_number":106,"box":{"x":70,"y":135,"width":599,"height":11}},{"id":"5f62321d-7235-4501-b5df-ad5fc135d72e","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into TOB Trust transactions, reverse","page_number":106,"box":{"x":102,"y":158,"width":762,"height":11}},{"id":"98ebbd9d-197f-4f48-972b-781c61b14070","block_type":"box","text":"repurchase agreements and similar financing transactions (e.g., borrowed bonds) notwithstanding the limitation on","page_number":106,"box":{"x":69,"y":173,"width":818,"height":11}},{"id":"beca52ba-aeb9-4ded-a66d-4d993bf6f0da","block_type":"box","text":"the issuance of senior securities in Section 18 of the Investment Company Act, provided that the Fund either","page_number":106,"box":{"x":68,"y":188,"width":778,"height":11}},{"id":"28f45095-c92f-4ed9-b19c-10d1ee75323a","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":106,"box":{"x":69,"y":203,"width":811,"height":12}},{"id":"3438cf53-81d9-4a5a-93f2-8f83d253d637","block_type":"box","text":"aggregate, or (ii) treats such transactions as Derivatives Transactions under Rule 18f-4. See “—Derivatives —","page_number":106,"box":{"x":69,"y":218,"width":786,"height":12}},{"id":"9a92d978-b545-432d-844a-bf81780c5546","block_type":"box","text":"Regulation of Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":106,"box":{"x":70,"y":234,"width":588,"height":11}},{"id":"74bfe8e3-3a49-4f17-86f9-cd4b757ccf93","block_type":"box","text":"Developments in the TOB Trust Market.","page_number":106,"box":{"x":102,"y":256,"width":279,"height":11}},{"id":"0d9a716b-c4c6-45de-bd09-8c95db2993c9","block_type":"box","text":"In response to the restrictions imposed by section 619 of the Dodd-Frank Wall Street Reform and Consumer","page_number":106,"box":{"x":102,"y":279,"width":771,"height":11}},{"id":"5e982369-2e77-4305-b933-131974378058","block_type":"box","text":"Protection Act (the “Volcker Rule”), market par ticipants have developed a structure for TOB Trusts designed to","page_number":106,"box":{"x":69,"y":294,"width":786,"height":11}},{"id":"db354f59-7348-4016-ac48-8fe2fd1627eb","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":106,"box":{"x":69,"y":309,"width":816,"height":11}},{"id":"eb1b1d4a-3f38-49f5-af76-5a0fb8ed8429","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":106,"box":{"x":69,"y":324,"width":791,"height":11}},{"id":"f94a30db-ad78-4f66-ac25-c939b988bbca","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":106,"box":{"x":69,"y":339,"width":812,"height":12}},{"id":"c01df242-db38-4169-a173-aa38bc7596d3","block_type":"box","text":"may utilize service providers in meeting these responsibilities. It is possible that regulators could take positions that","page_number":106,"box":{"x":69,"y":355,"width":832,"height":11}},{"id":"7c5e4241-c2d5-416b-b6fc-e087f203af33","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":106,"box":{"x":69,"y":370,"width":810,"height":11}},{"id":"d955fa06-f3e1-4d95-b6b6-8833861f41a9","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":106,"box":{"x":68,"y":385,"width":803,"height":11}},{"id":"5b812b5a-5fff-45da-900f-72c94e372cec","block_type":"box","text":"additional risks including, but not limited to, compliance, securities law and operational risks.","page_number":106,"box":{"x":69,"y":400,"width":665,"height":11}},{"id":"cc7c7c0e-a9ef-48c3-8e25-565e02e64b2e","block_type":"box","text":"Under this structure, service providers to a TOB Trust, such as administrators, liquidity providers, trustees, and","page_number":106,"box":{"x":102,"y":423,"width":793,"height":11}},{"id":"b5f609c1-47d6-4aad-a2d2-03312b5bfec3","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":106,"box":{"x":69,"y":438,"width":783,"height":11}},{"id":"d44faabd-6989-459a-876e-3fa5904bc74b","block_type":"box","text":"traditional tender option bond structure, a Fund deposits Municipal Bonds into the TOB Trust in exchange for TOB","page_number":106,"box":{"x":68,"y":453,"width":808,"height":11}},{"id":"662cb66c-0c67-45f8-a189-5344ed03d558","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":106,"box":{"x":70,"y":468,"width":830,"height":11}},{"id":"d13142df-06f6-4c23-b4da-468992e198fd","block_type":"box","text":"the TOB Floaters is distributed to such TOB Residual holders (","page_number":106,"box":{"x":68,"y":483,"width":442,"height":11}},{"id":"beae2757-7825-4362-ad08-3998f78c9de1","block_type":"box","text":"i.e.","page_number":106,"box":{"x":512,"y":483,"width":20,"height":9}},{"id":"faf25ec2-a54d-4580-9178-69a58ee24b95","block_type":"box","text":", the Fund). Tendered TOB Floaters continue to be","page_number":106,"box":{"x":535,"y":483,"width":352,"height":11}},{"id":"52664670-28d7-4638-b6a6-eb354f445693","block_type":"box","text":"suppor ted by a remarketing agent and a liquidity facility. However, the remarketing agent does not purchase tendered","page_number":106,"box":{"x":69,"y":498,"width":836,"height":11}},{"id":"ae8ff7f7-e81b-49d7-b418-8d9ff5ba3a30","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":106,"box":{"x":68,"y":513,"width":816,"height":12}},{"id":"9cb95406-bf87-481b-ac1c-22022f1f9c4d","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":106,"box":{"x":68,"y":528,"width":835,"height":11}},{"id":"f477f460-83e2-48b5-9e85-77dc755f16d8","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":106,"box":{"x":69,"y":543,"width":822,"height":12}},{"id":"5f1eddf6-c39b-49bf-a003-90d2930cdb1f","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":106,"box":{"x":69,"y":559,"width":777,"height":11}},{"id":"f7b2949a-c9af-4e50-8268-6b87a1ccc5b2","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":106,"box":{"x":69,"y":574,"width":800,"height":11}},{"id":"131783d4-4f09-482b-8c47-6369d09b1a01","block_type":"box","text":"made by a Liquidity Provider will be secured by the purchased TOB Floaters held by the TOB Trust.","page_number":106,"box":{"x":69,"y":589,"width":696,"height":11}},{"id":"ff249f37-6f95-4364-b01d-cff3c9115246","block_type":"box","text":"Similar to the traditional structure for TOB Trusts, a Fund may hold either non-recourse TOB Residuals or","page_number":106,"box":{"x":102,"y":612,"width":745,"height":11}},{"id":"1c12d18d-7eb1-41c3-bd60-22743accf1c0","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":106,"box":{"x":69,"y":627,"width":797,"height":11}},{"id":"1cebb327-b41c-415a-82cf-68339eb6cc11","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":106,"box":{"x":69,"y":642,"width":803,"height":10}},{"id":"583339f9-d270-42d1-91de-b0e52468e470","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":106,"box":{"x":69,"y":657,"width":838,"height":11}},{"id":"47add09f-4217-405e-b4b3-0b6a093fac24","block_type":"box","text":"The SEC and various federal banking and housing agencies adopted credit risk retention rules for securitizations","page_number":106,"box":{"x":101,"y":680,"width":801,"height":11}},{"id":"85e1c5f4-4499-404b-9953-30b1eada6e51","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":106,"box":{"x":69,"y":695,"width":838,"height":11}},{"id":"a6fa4ddc-2337-4f3e-a0c8-106ba91ca5e8","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":106,"box":{"x":68,"y":710,"width":787,"height":11}},{"id":"5d5084f1-06b4-40fc-8214-140da96e7a9f","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":106,"box":{"x":70,"y":725,"width":791,"height":11}},{"id":"c884957c-3046-4515-bcce-81e9fc4d42d9","block_type":"box","text":"increase the costs of such transactions in cer tain circumstances.","page_number":106,"box":{"x":70,"y":740,"width":466,"height":9}},{"id":"02ac3949-7c02-4a47-bff4-30245ffc241b","block_type":"box","text":"TOB Trust transactions constitute an impor tant component of the municipal bond market. Accordingly,","page_number":106,"box":{"x":101,"y":763,"width":726,"height":11}},{"id":"ba41a30f-5647-48d0-ae9c-9186ef4db8e4","block_type":"box","text":"implementation of the Volcker Rule may adversely impact the municipal market, including through reduced demand","page_number":106,"box":{"x":70,"y":778,"width":816,"height":11}},{"id":"d7d3f6ac-e4da-44ea-b4c4-4039a7b2e34f","block_type":"box","text":"for and liquidity of municipal bonds and increased financing costs for municipal issuers. Any such developments","page_number":106,"box":{"x":68,"y":793,"width":799,"height":11}},{"id":"920e6e2b-0ff2-4ab4-96c3-19ec0867f3f0","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":106,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"384b453a-f157-4842-bfab-8935f8b9a7de","block_type":"box","text":"market is not yet cer tain.","page_number":106,"box":{"x":69,"y":823,"width":178,"height":11}},{"id":"ffbe5591-f350-48bc-99ee-4ba78a78e092","block_type":"box","text":"Yields.","page_number":106,"box":{"x":103,"y":846,"width":45,"height":9}},{"id":"a258b889-189b-449c-a9c1-8d053de47efb","block_type":"box","text":"Yields on Municipal Bonds are dependent on a variety of factors, including the general condition of the","page_number":106,"box":{"x":154,"y":846,"width":730,"height":11}},{"id":"085c3c5b-ec63-4eb8-a09e-20a88a6202f2","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":106,"box":{"x":69,"y":861,"width":788,"height":11}},{"id":"2088ec48-2e2a-43bd-ad9e-9f98db3ed045","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":106,"box":{"x":70,"y":876,"width":787,"height":11}},{"id":"41258d2c-338a-4f77-ae2e-bc8934f79a9a","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":106,"box":{"x":69,"y":891,"width":838,"height":12}},{"id":"5768519a-c759-46b2-a819-e880e06d6842","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":106,"box":{"x":68,"y":906,"width":794,"height":12}},{"id":"402c30fa-7b9d-4272-aef6-e52d2a01a5c2","block_type":"box","text":"II-60","page_number":106,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"4d649dc5-0035-4c46-8b15-a99064f038a9","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":106,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"067445a2-a07c-4402-ba04-61b0391064d0","block_type":"box","text":"holding Municipal Bonds, both within a par ticular classification and between classifications, depending on numerous","page_number":107,"box":{"x":69,"y":45,"width":831,"height":11}},{"id":"a4e5c6d7-cb0a-4eb0-a800-426e78a081bc","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":107,"box":{"x":68,"y":60,"width":806,"height":11}},{"id":"fcfe5bef-6507-4d73-bcea-ae8ac3db1dc5","block_type":"box","text":"Bonds may be subject to applicable bankruptcy, insolvency and similar laws and cour t decisions affecting the rights","page_number":107,"box":{"x":70,"y":75,"width":823,"height":11}},{"id":"c42feef0-39d1-4349-8637-9860125d33d8","block_type":"box","text":"of creditors generally and to general equitable principles, which may limit the enforcement of cer tain remedies.","page_number":107,"box":{"x":69,"y":90,"width":790,"height":11}},{"id":"e0de812c-9839-444e-b453-1db2ecd87ec8","block_type":"box","text":"Variable Rate Demand Obligations (“VRDOs”).","page_number":107,"box":{"x":103,"y":113,"width":323,"height":11}},{"id":"fde2bb18-1210-4bbb-bbbe-3f8f6a9eaa70","block_type":"box","text":"VRDOs are tax-exempt obligations that contain a floating or","page_number":107,"box":{"x":432,"y":113,"width":422,"height":11}},{"id":"3ee3ce6b-9ec3-4f33-b978-2897fcc196b9","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":107,"box":{"x":68,"y":128,"width":830,"height":11}},{"id":"db743002-5a07-40d9-98ec-dfe879980883","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":107,"box":{"x":69,"y":143,"width":759,"height":11}},{"id":"d9150c37-07ec-4e2b-b98e-6175146e5a80","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":107,"box":{"x":101,"y":166,"width":798,"height":11}},{"id":"77f5e3be-386f-431c-877e-592b2106f745","block_type":"box","text":"The interest rates are adjustable at periodic intervals to some prevailing market rate for similar investments, such","page_number":107,"box":{"x":68,"y":181,"width":815,"height":11}},{"id":"4b314cf3-ef52-4167-85b6-42f22fbd882b","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":107,"box":{"x":69,"y":196,"width":826,"height":11}},{"id":"e716fceb-1f82-4789-a180-56e92ac11b44","block_type":"box","text":"VRDOs on the adjustment date. The adjustments typically are based upon the Securities Industry and Financial","page_number":107,"box":{"x":68,"y":211,"width":791,"height":11}},{"id":"91ab1661-cb8e-4672-84c9-e2b1c5401780","block_type":"box","text":"Markets Association (“SIFMA”) Index.","page_number":107,"box":{"x":70,"y":226,"width":264,"height":11}},{"id":"76ef9f6c-9fd8-4e85-83ee-b54b31c2f86d","block_type":"box","text":"Because of the interest rate adjustment formula on VRDOs, VRDOs are not comparable to fixed rate securities.","page_number":107,"box":{"x":102,"y":249,"width":791,"height":11}},{"id":"ec61e949-717a-4f5c-b1fe-500e99782cb4","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":107,"box":{"x":70,"y":264,"width":833,"height":11}},{"id":"2baf578c-4a09-4a8c-8e4d-3c47fe32aa41","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":107,"box":{"x":69,"y":279,"width":808,"height":11}},{"id":"16104818-bd4b-48e0-ae89-560b2d872d0a","block_type":"box","text":"increase and the Fund’s shareholders will have a reduced risk of capital depreciation.","page_number":107,"box":{"x":70,"y":294,"width":608,"height":11}},{"id":"81addcde-9a40-42f9-9bf0-c431e9648779","block_type":"box","text":"Transactions in Financial Futures Contracts on Municipal Indexes.","page_number":107,"box":{"x":103,"y":317,"width":465,"height":11}},{"id":"ea1ba4bd-8fdd-4fa1-a2d0-8a4961d6f0c1","block_type":"box","text":"The Municipal Funds and cer tain other funds","page_number":107,"box":{"x":574,"y":317,"width":318,"height":11}},{"id":"37aae9ff-f637-4feb-8b57-99f51903b4a2","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":107,"box":{"x":69,"y":332,"width":803,"height":11}},{"id":"058d25b6-8ac0-41aa-8437-94c03165738b","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":107,"box":{"x":68,"y":347,"width":825,"height":11}},{"id":"8ccf317f-c66f-4ce9-8879-c62ee7bdbf7b","block_type":"box","text":"term, actively traded tax-exempt municipal revenue and general obligation bonds. Each bond included in the Municipal","page_number":107,"box":{"x":68,"y":362,"width":840,"height":11}},{"id":"3d3da2d3-dae0-4f83-adb1-6f47ddb421a5","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":107,"box":{"x":70,"y":377,"width":815,"height":12}},{"id":"570f7d3b-e4a5-4af4-a879-383db46e06c4","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":107,"box":{"x":68,"y":392,"width":836,"height":12}},{"id":"d773ae1e-c99e-4995-9d7a-5acc11580a39","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":107,"box":{"x":69,"y":407,"width":796,"height":12}},{"id":"d74a123e-16b6-4768-824b-dcfe6a9be415","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":107,"box":{"x":68,"y":423,"width":816,"height":11}},{"id":"3d669b5d-6662-4f8e-a60b-dfb0e2aeee2c","block_type":"box","text":"The Municipal Bond Index futures contract is traded only on the CBT. Like other contract markets, the CBT","page_number":107,"box":{"x":101,"y":445,"width":756,"height":11}},{"id":"76255aa2-5942-4a2e-ae0f-786e8ccb1c90","block_type":"box","text":"assures per formance under futures contracts through a clearing corporation, a nonprofit organization managed by the","page_number":107,"box":{"x":69,"y":460,"width":839,"height":12}},{"id":"99bf18eb-fe49-4e9a-b620-dd2a6f80709f","block_type":"box","text":"exchange membership that is also responsible for handling daily accounting of deposits or withdrawals of margin.","page_number":107,"box":{"x":69,"y":475,"width":808,"height":12}},{"id":"ff8ec504-074d-49f9-aec1-50de4fd27220","block_type":"box","text":"The par ticular municipal bonds comprising the index underlying the Municipal Bond Index financial futures","page_number":107,"box":{"x":101,"y":498,"width":753,"height":11}},{"id":"2330b7b2-51f1-4456-a64f-0488941adf74","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":107,"box":{"x":69,"y":513,"width":764,"height":12}},{"id":"8201e951-1fea-410e-9eab-100ee30126d1","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":107,"box":{"x":69,"y":528,"width":826,"height":12}},{"id":"70bb0317-448c-4a01-ae9f-ce659377ea50","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":107,"box":{"x":69,"y":543,"width":774,"height":12}},{"id":"3a4ef38b-8a96-44ca-bd1f-cf01c806856e","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":107,"box":{"x":69,"y":559,"width":801,"height":11}},{"id":"cc619d3f-b828-440c-8b8d-b414eacd5f56","block_type":"box","text":"disparities in the average maturity, ratings, geographical mix or structure of a Municipal Fund’s investments as","page_number":107,"box":{"x":69,"y":574,"width":788,"height":11}},{"id":"9f8a665d-a22f-4e8a-ba17-35b28f0ef608","block_type":"box","text":"compared to those comprising the Municipal Bond Index and general economic or political factors. In addition, the","page_number":107,"box":{"x":69,"y":589,"width":812,"height":11}},{"id":"abd50443-5908-46c9-8d3f-3c70366a4abb","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":107,"box":{"x":69,"y":604,"width":799,"height":11}},{"id":"c0bfb5af-8787-42c1-b130-5bfa592a3471","block_type":"box","text":"additions to and deletions from the Municipal Bond Index alter its structure. The correlation between futures","page_number":107,"box":{"x":69,"y":619,"width":772,"height":11}},{"id":"b8cb04b2-a22e-4b43-8c2e-a7f62155f8ae","block_type":"box","text":"contracts on U.S. Government Securities and the Municipal Bonds held by a Municipal Fund may be adversely","page_number":107,"box":{"x":69,"y":634,"width":782,"height":11}},{"id":"18cdabad-a9b0-4998-a129-981bee62befa","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":107,"box":{"x":69,"y":649,"width":806,"height":12}},{"id":"1a40cd40-7b3b-4af8-9313-df1760739656","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":107,"box":{"x":69,"y":664,"width":823,"height":12}},{"id":"3354ba02-ff51-41ee-8aff-43d24dd1e465","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":107,"box":{"x":69,"y":680,"width":837,"height":11}},{"id":"8148bc00-751f-47ac-ae72-9b087818d41d","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":107,"box":{"x":70,"y":695,"width":839,"height":11}},{"id":"ecb5fdc0-ebfa-4fef-a520-fd49ebe8c62a","block_type":"box","text":"trading activity, which could at times make it difficult or impossible to liquidate existing positions.","page_number":107,"box":{"x":68,"y":710,"width":693,"height":11}},{"id":"6753e88d-a307-4998-88b5-f561f8296096","block_type":"box","text":"Call Rights.","page_number":107,"box":{"x":102,"y":733,"width":79,"height":11}},{"id":"02924bd6-7717-42ca-904f-9ab3748c1a58","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":107,"box":{"x":187,"y":732,"width":708,"height":12}},{"id":"f5cdf592-5165-4ffa-a4a9-80b5f71f3492","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":107,"box":{"x":68,"y":748,"width":790,"height":11}},{"id":"d0f5ae5e-761d-4415-a62f-db358037a006","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":107,"box":{"x":69,"y":763,"width":827,"height":11}},{"id":"4e80639c-c838-4cfc-87a6-d4eab6043b6b","block_type":"box","text":"exercised prior to maturity of the related Municipal Bond will expire without value. The economic effect of holding","page_number":107,"box":{"x":69,"y":778,"width":805,"height":11}},{"id":"36a91cf9-8de7-4c4c-8c66-6f79dccb96bf","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":107,"box":{"x":69,"y":793,"width":833,"height":11}},{"id":"b7323d24-6c6d-4d18-8e1e-f54aea395b69","block_type":"box","text":"Cer tain investments in such obligations may be illiquid.","page_number":107,"box":{"x":69,"y":808,"width":393,"height":11}},{"id":"cb07abe0-2e63-40f7-8471-a1d141770c18","block_type":"box","text":"Municipal Interest Rate Swap Transactions.","page_number":107,"box":{"x":102,"y":831,"width":307,"height":11}},{"id":"6fc72304-5a07-42f2-9f39-c450118e729e","block_type":"box","text":"In order to hedge the value of a Fund against interest rate","page_number":107,"box":{"x":417,"y":831,"width":411,"height":11}},{"id":"c16fabec-9bb6-4c3b-8590-10f7e1e4944f","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":107,"box":{"x":68,"y":846,"width":835,"height":11}},{"id":"996b2188-de24-4611-afd8-e9bd701bcac3","block_type":"box","text":"Market Data AAA Cash Curve swaps (“MMD Swaps”) or Securities Industry and Financial Markets Association","page_number":107,"box":{"x":70,"y":861,"width":781,"height":11}},{"id":"68929162-b5ad-4da7-b09b-aa4682990008","block_type":"box","text":"Municipal Swap Index swaps (“SIFMA Swaps”). To the extent that a Fund enters into these transactions, the Fund","page_number":107,"box":{"x":70,"y":876,"width":808,"height":11}},{"id":"9860f6b9-8542-4ecb-a835-5ca56a2be077","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":107,"box":{"x":69,"y":891,"width":814,"height":11}},{"id":"e90f6b68-33bb-44c9-863f-cc8891fee51d","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":107,"box":{"x":70,"y":906,"width":832,"height":12}},{"id":"147f78c0-b75b-4860-83b2-1bbfdbaf46ee","block_type":"box","text":"II-61","page_number":107,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e56f9637-31cd-4542-880d-f8681eac7e42","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":107,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1aa9042b-a25c-43a5-af38-964ffc197bd3","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":108,"box":{"x":68,"y":45,"width":817,"height":11}},{"id":"9b819e5d-121d-4ce1-9520-595b7aceb278","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":108,"box":{"x":70,"y":60,"width":797,"height":11}},{"id":"b6159609-b5c5-458e-a450-31d7fef30a43","block_type":"box","text":"during periods of steep interest rate yield curves (","page_number":108,"box":{"x":69,"y":75,"width":356,"height":11}},{"id":"bfd6d18b-2115-4e1d-9870-254af4285b5f","block_type":"box","text":"i.e.","page_number":108,"box":{"x":427,"y":75,"width":20,"height":9}},{"id":"c7541e1b-b494-46a0-a181-ba79c096030a","block_type":"box","text":", wide differences between shor t-term and long-term interest","page_number":108,"box":{"x":449,"y":75,"width":433,"height":11}},{"id":"9d5e496f-b824-4799-8f73-72d6ddf0e94b","block_type":"box","text":"rates).","page_number":108,"box":{"x":69,"y":90,"width":44,"height":11}},{"id":"9ba68f9c-6b02-42d5-b1d2-504bb12336da","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":108,"box":{"x":101,"y":113,"width":807,"height":11}},{"id":"af75c159-f16b-400a-81ad-59f97171e15e","block_type":"box","text":"another par ty their respective commitments to pay or receive interest (","page_number":108,"box":{"x":69,"y":128,"width":503,"height":11}},{"id":"a2bd1715-65b0-475a-b83f-cba4063ba2bd","block_type":"box","text":"e.g.","page_number":108,"box":{"x":574,"y":129,"width":25,"height":10}},{"id":"ee11c90d-cac0-437c-82c5-0764b9abb4af","block_type":"box","text":", an exchange of fixed rate payments for","page_number":108,"box":{"x":601,"y":128,"width":286,"height":11}},{"id":"1282ca07-f557-429e-ad1f-f0da874f4e88","block_type":"box","text":"floating rate payments linked to the SIFMA Municipal Swap Index). Because the underlying index is a tax-exempt","page_number":108,"box":{"x":68,"y":143,"width":798,"height":11}},{"id":"81c83469-039e-4eb0-8864-efef16cbd5c7","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":108,"box":{"x":70,"y":158,"width":778,"height":11}},{"id":"7548155e-f85c-4c3c-9168-3f0490041422","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":108,"box":{"x":69,"y":173,"width":833,"height":11}},{"id":"4d46508c-d19a-42ab-92dc-78763d6b9ebd","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":108,"box":{"x":69,"y":188,"width":823,"height":11}},{"id":"5e755784-f2ca-4fb3-94ab-8d1a7a66df50","block_type":"box","text":"with the same attributes as the swap (","page_number":108,"box":{"x":68,"y":204,"width":275,"height":10}},{"id":"e1066631-130b-4c25-a28c-05cbbec6eabd","block_type":"box","text":"e.g.","page_number":108,"box":{"x":345,"y":205,"width":24,"height":10}},{"id":"a67ddc16-08db-43f8-ba00-06f76b60f949","block_type":"box","text":", coupon, maturity, call feature).","page_number":108,"box":{"x":372,"y":203,"width":224,"height":12}},{"id":"978e4fa7-0f1d-4ea0-aeae-9f880e146783","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":108,"box":{"x":101,"y":226,"width":797,"height":11}},{"id":"e86dc18d-978b-4411-b625-7915ffc9cda8","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":108,"box":{"x":68,"y":241,"width":770,"height":11}},{"id":"69b76ac2-1fe4-4156-b7b7-1da0340934d6","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":108,"box":{"x":70,"y":256,"width":832,"height":12}},{"id":"68560a2f-a6b9-4a7b-88f4-7f41c8e7a66c","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":108,"box":{"x":70,"y":271,"width":805,"height":12}},{"id":"e86b8bd6-5262-4d86-bf8b-064bfbba516e","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":108,"box":{"x":69,"y":286,"width":808,"height":12}},{"id":"1be6feec-0247-4f4b-8e5e-9d76c97bf277","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":108,"box":{"x":69,"y":302,"width":832,"height":11}},{"id":"6e9a2268-6a93-4beb-8c56-f9dc4fe11d53","block_type":"box","text":"a notional amount, contingent upon whether the Municipal Market Data AAA General Obligation Scale is above or","page_number":108,"box":{"x":69,"y":317,"width":804,"height":11}},{"id":"9ac4beee-f157-4c88-9f27-c02e2cb2fcc2","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":108,"box":{"x":69,"y":332,"width":803,"height":11}},{"id":"8790d0e6-5e08-48f4-94ac-ea614d35d3de","block_type":"box","text":"Municipal Market Data AAA General Obligation Scale is below the specified level on the expiration date, the","page_number":108,"box":{"x":70,"y":347,"width":763,"height":11}},{"id":"fc759b2a-1d0e-4f73-90c7-23b19eafbbac","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":108,"box":{"x":69,"y":362,"width":797,"height":11}},{"id":"595ace1b-f70c-4ae6-9f7d-0a32aefc1d2e","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":108,"box":{"x":69,"y":377,"width":836,"height":12}},{"id":"c36943f1-13be-4cd5-9857-7f6098d7321f","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":108,"box":{"x":68,"y":392,"width":816,"height":12}},{"id":"89fd4d98-9382-4be7-966e-80537d947395","block_type":"box","text":"minus the specified level, multiplied by the notional amount of the contract.","page_number":108,"box":{"x":69,"y":407,"width":537,"height":12}},{"id":"33f88f11-71a5-42c2-bc20-71924f488eda","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":108,"box":{"x":102,"y":430,"width":788,"height":11}},{"id":"5e5f7b4f-2ba4-4f48-b422-9d44cbe4f47e","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":108,"box":{"x":69,"y":446,"width":821,"height":10}},{"id":"a4f86edc-c0fe-4e7d-bfd4-f0c5c5fff71d","block_type":"box","text":"the transaction that could adversely affect the Fund’s per formance.","page_number":108,"box":{"x":68,"y":460,"width":482,"height":12}},{"id":"2f002fca-b9a6-4d0c-8091-13759f63deba","block_type":"box","text":"Insured Municipal Bonds.","page_number":108,"box":{"x":102,"y":483,"width":179,"height":11}},{"id":"3d8187d5-3691-4a2b-a9c8-9bcf1ecdc97e","block_type":"box","text":"Bonds purchased by a Fund may be covered by insurance that guarantees that interest","page_number":108,"box":{"x":288,"y":483,"width":619,"height":11}},{"id":"cd51e2fc-db7d-44cc-a063-d1c9462e1d85","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":108,"box":{"x":70,"y":498,"width":835,"height":11}},{"id":"05b65c50-3f04-466f-a662-943fbcf868df","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":108,"box":{"x":69,"y":513,"width":840,"height":12}},{"id":"d4d301a9-562c-4d29-bac1-fb0f2883d5de","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":108,"box":{"x":69,"y":528,"width":818,"height":12}},{"id":"5caa68d7-6879-483e-b696-f221ccf7d036","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":108,"box":{"x":69,"y":544,"width":829,"height":11}},{"id":"759d3886-6fb3-4397-b09b-e170427b16b6","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":108,"box":{"x":70,"y":559,"width":827,"height":11}},{"id":"aefb319f-71ba-4c9c-b1ea-e8ffff5f53be","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":108,"box":{"x":70,"y":574,"width":815,"height":11}},{"id":"582da4ab-89ec-41e2-91f7-af2df26981b6","block_type":"box","text":"ability, financial strength, or equivalent ratings of at least investment grade. However, if insurance from insurers with","page_number":108,"box":{"x":69,"y":589,"width":829,"height":11}},{"id":"e33f066e-7815-4903-a25c-c150f796fcd6","block_type":"box","text":"these ratings is not available, the Fund may use insurance companies with lower ratings or stop purchasing","page_number":108,"box":{"x":68,"y":604,"width":767,"height":11}},{"id":"6c536842-1bac-49aa-a015-6f0dac6cbe31","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":108,"box":{"x":70,"y":619,"width":827,"height":11}},{"id":"6db4f29f-2999-40f8-b000-e73b3029d8f8","block_type":"box","text":"bond could drop.","page_number":108,"box":{"x":69,"y":634,"width":118,"height":11}},{"id":"7d8d1e0f-d3da-4d8f-89b3-d19f4feef175","block_type":"box","text":"Build America Bonds.","page_number":108,"box":{"x":102,"y":657,"width":150,"height":9}},{"id":"dd1810cd-fc0b-4426-bfb7-4da6a5d66c04","block_type":"box","text":"If a Fund holds Build America Bonds, the Fund may be eligible to receive a U.S. federal","page_number":108,"box":{"x":259,"y":657,"width":616,"height":11}},{"id":"23818e4a-7df6-4532-906e-07bc10306b83","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":108,"box":{"x":70,"y":672,"width":825,"height":11}},{"id":"e0ba9e4b-4f96-4cac-8ead-b1b120ed465e","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":108,"box":{"x":68,"y":687,"width":824,"height":11}},{"id":"e6a3fd31-3841-4626-95bf-00cb079e0222","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":108,"box":{"x":70,"y":702,"width":833,"height":11}},{"id":"62cdca02-b023-4396-83f0-cbbe876ef325","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":108,"box":{"x":69,"y":717,"width":815,"height":12}},{"id":"9136afe1-232e-4bd6-bc92-0c5578149968","block_type":"box","text":"minimum distribution requirement, the Fund may elect for U.S. federal income tax purposes to pass through to","page_number":108,"box":{"x":69,"y":732,"width":788,"height":12}},{"id":"d95d4c1b-b272-4536-90f1-9bcd5ff63a12","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":108,"box":{"x":69,"y":748,"width":823,"height":11}},{"id":"eebaeb57-091f-4d23-85e7-d22474ed3b2d","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":108,"box":{"x":70,"y":763,"width":825,"height":11}},{"id":"4ec304e1-169c-4843-98ea-ad00629e1194","block_type":"box","text":"clean renewable energy bond, a qualified energy conservation bond, or a qualified zone academy bond, each of which","page_number":108,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"32cd4496-3190-441c-bb4c-d34034c3abf8","block_type":"box","text":"must meet cer tain requirements specified in the Code), a “Build America Bond” (which includes cer tain qualified","page_number":108,"box":{"x":69,"y":793,"width":802,"height":11}},{"id":"50dde199-ed61-484d-8164-96c0f5953922","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":108,"box":{"x":69,"y":808,"width":821,"height":11}},{"id":"3790c59f-2b80-4258-974f-163b1b81a526","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":108,"box":{"x":68,"y":823,"width":760,"height":11}},{"id":"45a3a88f-c58b-4bb4-9eac-f9b565eba684","block_type":"box","text":"propor tionate share of such credits, and such amount would be subject to withholding provisions of the Code.","page_number":108,"box":{"x":70,"y":838,"width":782,"height":12}},{"id":"8f3d9993-408e-4c88-9b4b-8154725656dc","block_type":"box","text":"Cer tain limitations may apply on the extent to which the credit may be claimed.","page_number":108,"box":{"x":69,"y":854,"width":563,"height":11}},{"id":"f8c23e89-947d-416e-ad57-63e629ca1a69","block_type":"box","text":"Tax-Exempt Municipal Investments.","page_number":108,"box":{"x":103,"y":876,"width":246,"height":11}},{"id":"0a0d0dc9-6a42-4456-a63c-a5c5557a6d60","block_type":"box","text":"Cer tain Funds may hold tax-exempt municipal investments which may be in","page_number":108,"box":{"x":355,"y":876,"width":534,"height":11}},{"id":"ac2bf58b-cdf4-4d9c-bd09-e8d98891e914","block_type":"box","text":"the form of tender option bonds, variable rate demand obligations, par ticipations, beneficial interests in a trust,","page_number":108,"box":{"x":68,"y":891,"width":798,"height":12}},{"id":"bc585328-bd6e-4ea4-bccb-cbd441326894","block_type":"box","text":"par tnership interests or other forms. These investments are described in greater detail above in this section. Some","page_number":108,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"8fd95af2-7a5a-43bc-b6c8-820a15eb3d73","block_type":"box","text":"II-62","page_number":108,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c0e38132-ba81-46c7-ab70-b7ce7ba8ce79","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":108,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8e2a92e4-d095-42c5-9105-4ebac5e363c9","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":109,"box":{"x":69,"y":45,"width":830,"height":11}},{"id":"9eeca8e7-fc87-4419-9e3b-374dc96cb2d5","block_type":"box","text":"trustee or custodian, that are coupled with tender option, demand and other features when the tax-exempt municipal","page_number":109,"box":{"x":68,"y":60,"width":832,"height":11}},{"id":"6c93d39b-7f83-4257-8c75-c17baa0bcc0b","block_type":"box","text":"investments are created. Together, these features entitle the holder of the interest to tender (or put) the underlying","page_number":109,"box":{"x":70,"y":75,"width":819,"height":11}},{"id":"c946ac22-db41-443f-8edc-cd915fd94a2c","block_type":"box","text":"municipal debt obligation to a third par ty at periodic intervals and to receive the principal amount thereof.","page_number":109,"box":{"x":69,"y":90,"width":752,"height":11}},{"id":"76ff8d37-de78-4f4e-85a6-09085cd5356c","block_type":"box","text":"In some cases, municipal debt obligations are represented by custodial receipts evidencing rights to receive","page_number":109,"box":{"x":102,"y":113,"width":770,"height":11}},{"id":"6aa6e140-4d68-48ca-9756-343be392e8aa","block_type":"box","text":"specific future interest payments, principal payments, or both, on the underlying securities held by the custodian.","page_number":109,"box":{"x":69,"y":128,"width":806,"height":11}},{"id":"f71db637-e5f4-4eb9-b673-90387bb295e4","block_type":"box","text":"Under such arrangements, the holder of the custodial receipt has the option to tender the underlying securities at","page_number":109,"box":{"x":70,"y":143,"width":809,"height":11}},{"id":"58e480ab-d346-4c99-bef1-9f3fca1c3798","block_type":"box","text":"their face value to the sponsor (","page_number":109,"box":{"x":68,"y":158,"width":228,"height":11}},{"id":"12466a2b-c00b-4757-829a-48f88d126cfc","block_type":"box","text":"e.g.","page_number":109,"box":{"x":297,"y":160,"width":25,"height":9}},{"id":"391650f2-2565-4a3f-a543-8abab3ad560f","block_type":"box","text":", a Fund, or a bank or broker-dealer or other financial institution), which is paid","page_number":109,"box":{"x":325,"y":158,"width":557,"height":11}},{"id":"1c092ee6-3f44-4805-8b7c-055e11f23198","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":109,"box":{"x":70,"y":173,"width":803,"height":11}},{"id":"ee47ef52-96b4-43d7-9894-365c87dffa84","block_type":"box","text":"securities, coupled with the tender option, to trade at par on the date of a rate adjustment.","page_number":109,"box":{"x":69,"y":188,"width":648,"height":11}},{"id":"95ead839-cda2-4fd5-8737-a80478e0270f","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":109,"box":{"x":101,"y":211,"width":775,"height":11}},{"id":"4c14d256-e6c3-4a0f-97ba-43deff130923","block_type":"box","text":"par ticipation bears to the total principal amount of the Municipal Bond, and typically provides for a repurchase","page_number":109,"box":{"x":70,"y":226,"width":785,"height":11}},{"id":"29a84b0c-ab1a-4d34-8a8b-7af887dfc1eb","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":109,"box":{"x":68,"y":241,"width":821,"height":11}},{"id":"b7fe0d24-55a0-48f7-828d-fcd9bf24a4b0","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":109,"box":{"x":70,"y":256,"width":833,"height":12}},{"id":"8dc21837-74a9-4da6-a7c8-16fe4eb46957","block_type":"box","text":"into variable or floating rate demand instruments.","page_number":109,"box":{"x":70,"y":271,"width":351,"height":12}},{"id":"d1e957c2-d405-49ec-9019-2152ef88d52f","block_type":"box","text":"The Municipal Bond Funds may hold par ticipation interests and custodial receipts for municipal debt obligations","page_number":109,"box":{"x":101,"y":294,"width":797,"height":11}},{"id":"df73d44e-30e3-417f-813b-5b6fbe4788e1","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":109,"box":{"x":68,"y":309,"width":836,"height":11}},{"id":"60d445d7-571c-466d-a3f1-d3d664c52d3c","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":109,"box":{"x":69,"y":324,"width":831,"height":11}},{"id":"41c44c67-b6cb-4c19-979a-8523248e3bbd","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":109,"box":{"x":69,"y":339,"width":809,"height":12}},{"id":"b703295f-2a87-476d-990d-3fb3b986002e","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":109,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"5ad6eb80-2a18-4d04-a9db-f69844a11443","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":109,"box":{"x":69,"y":370,"width":828,"height":11}},{"id":"fbb53ff2-c104-4497-80dd-bc8481d00aa6","block_type":"box","text":"such opinions.","page_number":109,"box":{"x":69,"y":385,"width":102,"height":11}},{"id":"d8d83987-338a-4f3a-bca5-8594faf789fc","block_type":"box","text":"Operational and Technology Risks.","page_number":109,"box":{"x":102,"y":408,"width":250,"height":11}},{"id":"07457695-9939-4e48-8dbe-85513c2a5449","block_type":"box","text":"The Fund and the entities with which it interacts directly or indirectly are","page_number":109,"box":{"x":358,"y":408,"width":512,"height":11}},{"id":"fb65429b-12af-4793-9d8d-ac9bdecb88e0","block_type":"box","text":"susceptible to operational and technology risks, including those related to human errors, processing errors,","page_number":109,"box":{"x":69,"y":423,"width":766,"height":11}},{"id":"4ad967ef-4aae-4f80-a85c-a4884aeef929","block_type":"box","text":"communication errors, systems failures, cybersecurity incidents, and the use of ar tificial intelligence and machine","page_number":109,"box":{"x":69,"y":438,"width":812,"height":11}},{"id":"255cf578-31ee-4550-8589-8e5307886aa5","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":109,"box":{"x":70,"y":453,"width":820,"height":11}},{"id":"8318acd4-ff82-4eb4-8d47-9d27b3dc8959","block_type":"box","text":"entities include, but are not limited to, the Fund’s adviser, administrator, distributor, other service providers (e.g.,","page_number":109,"box":{"x":69,"y":468,"width":807,"height":11}},{"id":"2f4353f0-4521-47d1-86b1-b61870618eb1","block_type":"box","text":"index and benchmark providers, accountants, custodians, and transfer agents), financial intermediaries,","page_number":109,"box":{"x":70,"y":483,"width":741,"height":11}},{"id":"042d0b52-c60b-46de-ad91-43706cadf7e2","block_type":"box","text":"counterpar ties, market makers, Authorized Par ticipants, listing exchanges, other financial market operators, and","page_number":109,"box":{"x":69,"y":498,"width":802,"height":11}},{"id":"42f1d7d0-a714-4c87-a181-1525f846fe30","block_type":"box","text":"governmental authorities, as applicable. Operational and technology risks for the issuers in which the Fund invests","page_number":109,"box":{"x":68,"y":513,"width":818,"height":12}},{"id":"c575de2d-5289-48cc-a881-7ef6a47d81ec","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":109,"box":{"x":69,"y":528,"width":827,"height":12}},{"id":"ecf529c6-efc5-4294-a4f9-1664f80b1166","block_type":"box","text":"issuers to lose value. The Fund may incur substantial costs in order to mitigate operational and technology risks.","page_number":109,"box":{"x":70,"y":544,"width":803,"height":11}},{"id":"53bac845-d9d2-4639-9aae-0ff8f963c270","block_type":"box","text":"Cybersecurity incidents can result from deliberate attacks or unintentional events against an issuer in which the","page_number":109,"box":{"x":102,"y":566,"width":796,"height":11}},{"id":"33a4c244-a93f-4e6c-9806-4511c04a82e9","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":109,"box":{"x":70,"y":581,"width":790,"height":12}},{"id":"59cd858b-af8a-42b2-9d33-5e1fcac8cb69","block_type":"box","text":"access to systems, misappropriating assets or sensitive information, corrupting or destroying data, and causing","page_number":109,"box":{"x":69,"y":596,"width":800,"height":12}},{"id":"82a186de-8065-43e6-95ea-176218dc9c99","block_type":"box","text":"operational disruption. Geopolitical tension may increase the scale and sophistication of deliberate attacks,","page_number":109,"box":{"x":69,"y":612,"width":768,"height":11}},{"id":"96aff0ee-f2b5-49f5-a576-65e26d524f73","block_type":"box","text":"par ticularly those from nation states or from entities with nation state backing. Cybersecurity incidents may result in","page_number":109,"box":{"x":70,"y":627,"width":827,"height":11}},{"id":"96d98c51-44b5-492b-b9da-3871f17ccd26","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":109,"box":{"x":69,"y":642,"width":760,"height":11}},{"id":"8b283422-92ee-4e32-a4c3-d065ef19e525","block_type":"box","text":"confidential information; impediments to trading; submission of erroneous trades by the Fund or erroneous","page_number":109,"box":{"x":69,"y":657,"width":763,"height":11}},{"id":"464e150f-1b83-43cd-89f1-04595ded1321","block_type":"box","text":"subscription or redemption orders; the inability of the Fund or its service providers to transact business; violations of","page_number":109,"box":{"x":69,"y":672,"width":835,"height":11}},{"id":"cac021a3-4777-44d0-8f9c-77187fa8d803","block_type":"box","text":"applicable privacy and other laws; regulatory fines; penalties; reputational damage; reimbursement or other","page_number":109,"box":{"x":69,"y":687,"width":766,"height":11}},{"id":"b09ebad2-ea84-4516-ab35-a5239d93d1e4","block_type":"box","text":"compensation costs; and other legal and compliance expenses. Fur thermore, cybersecurity incidents may render","page_number":109,"box":{"x":69,"y":703,"width":804,"height":11}},{"id":"0c9fe57d-f3e1-4d40-ba06-61f455b43d4c","block_type":"box","text":"records of the Fund, including records relating to its assets and transactions, shareholder ownership of Fund shares,","page_number":109,"box":{"x":69,"y":717,"width":833,"height":12}},{"id":"c1b17aec-2acf-42b3-8afd-995a9e36b1be","block_type":"box","text":"and other data integral to the Fund’s functioning, inaccessible, inaccurate or incomplete. Power outages, natural","page_number":109,"box":{"x":69,"y":732,"width":800,"height":12}},{"id":"69cb033d-7a03-4f6b-adb0-881491fe1f72","block_type":"box","text":"disasters, equipment malfunctions and processing errors that threaten information and technology systems relied","page_number":109,"box":{"x":69,"y":748,"width":812,"height":11}},{"id":"276a34ef-3a3d-4a9c-bd7d-e81cf4261e15","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":109,"box":{"x":69,"y":763,"width":777,"height":11}},{"id":"be3e4b29-b096-477c-a592-821998e5da3c","block_type":"box","text":"systems, may also disrupt business operations or impact critical data. Recent advances in AI technology pose risks","page_number":109,"box":{"x":69,"y":778,"width":824,"height":11}},{"id":"cd3a73b3-4dc1-4eb4-8bb9-f703206d2545","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":109,"box":{"x":68,"y":793,"width":836,"height":11}},{"id":"10a05859-65cd-4e62-bc34-c5e2f2cc86f8","block_type":"box","text":"reducing the demand for both the technology and software offerings of the Fund’s por tfolio investments. Additionally,","page_number":109,"box":{"x":69,"y":808,"width":833,"height":11}},{"id":"cb9af74d-4cac-43da-8694-b7ca8802cd39","block_type":"box","text":"these advancements could significantly disrupt the Fund’s por tfolio investments and subject them to increased","page_number":109,"box":{"x":68,"y":823,"width":793,"height":12}},{"id":"114b233f-82ef-4d90-bb83-35d5560edd96","block_type":"box","text":"competition, which could have a material adverse effect on business, financial condition, and results of operations.","page_number":109,"box":{"x":69,"y":838,"width":822,"height":11}},{"id":"9609146e-29a2-435b-9857-68293713abc2","block_type":"box","text":"AI technology advancements, including efficiency improvements, without related increases in the adoption and","page_number":109,"box":{"x":68,"y":853,"width":787,"height":12}},{"id":"88a6cd6d-c73d-4501-abe7-1f851390fcb0","block_type":"box","text":"development of such technologies, could also negatively impact demand for, and the valuation of, digital","page_number":109,"box":{"x":69,"y":869,"width":742,"height":11}},{"id":"454144c0-3d1b-40f5-bc43-351a13f81fa3","block_type":"box","text":"infrastructure assets.","page_number":109,"box":{"x":70,"y":884,"width":151,"height":9}},{"id":"030af23b-81d8-4178-b7f0-f3e191306dc2","block_type":"box","text":"II-63","page_number":109,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1609b445-2fe7-44da-bb3a-386f86f56466","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":109,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ca438e91-bfa1-4793-8963-b9f206257402","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":110,"box":{"x":101,"y":45,"width":755,"height":11}},{"id":"7a0dfc5e-db07-4a4a-bd91-b81b881484ca","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":110,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"656ad4b1-2fc1-4b3a-ac57-050e1aa9f705","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":110,"box":{"x":68,"y":75,"width":833,"height":11}},{"id":"32e00541-f15a-4d31-b43d-9e93d92310d6","block_type":"box","text":"or services.","page_number":110,"box":{"x":69,"y":90,"width":82,"height":9}},{"id":"2bc158b3-d327-430b-bbd1-0b197025f8c8","block_type":"box","text":"Use of AI technology could include the input of confidential information in contravention of applicable policies,","page_number":110,"box":{"x":102,"y":113,"width":781,"height":11}},{"id":"be87e3af-75f9-42a2-9d73-8e7bb8e9b989","block_type":"box","text":"contractual or other obligations or restrictions, resulting in such confidential information becoming accessible by","page_number":110,"box":{"x":69,"y":128,"width":801,"height":11}},{"id":"35527d65-8b45-48db-97cf-fb622f5942b6","block_type":"box","text":"other third-par ty AI technology applications and users.","page_number":110,"box":{"x":69,"y":143,"width":383,"height":11}},{"id":"cc4e9fdf-1777-4176-9844-7970d9da92d2","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":110,"box":{"x":102,"y":166,"width":795,"height":11}},{"id":"070a37f3-8c87-4118-9696-7cceb84fc591","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":110,"box":{"x":69,"y":181,"width":813,"height":11}},{"id":"3abfabe5-cf79-4026-9a33-b382ab8005ef","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":110,"box":{"x":69,"y":196,"width":785,"height":11}},{"id":"fc789024-d9e1-498f-9378-19661e1c83b3","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":110,"box":{"x":69,"y":211,"width":782,"height":11}},{"id":"0e5563e7-d6f7-4448-acf4-48372517d8ee","block_type":"box","text":"degrade the effectiveness of AI technology. The output or results of any such AI technologies may therefore be","page_number":110,"box":{"x":69,"y":226,"width":787,"height":11}},{"id":"9dd14933-53e6-4d7e-a14c-8e467a060093","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":110,"box":{"x":70,"y":241,"width":809,"height":11}},{"id":"0fd0705f-9816-4d1c-bebe-98cf33cb36e8","block_type":"box","text":"and how outputs are generated. AI technologies may also allow the unintended introduction of vulnerabilities into","page_number":110,"box":{"x":69,"y":256,"width":805,"height":12}},{"id":"cea268ca-e56d-4b06-a7ba-ecde9704df9e","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":110,"box":{"x":70,"y":271,"width":822,"height":11}},{"id":"2ac8864f-1ac1-489d-a9e7-c4980dc48516","block_type":"box","text":"AI technology use, any such inaccuracies or errors could have adverse impacts on the Fund or its investments.","page_number":110,"box":{"x":68,"y":287,"width":789,"height":11}},{"id":"a15bbff2-9c2d-4a60-9e17-0d29ebbe0dc6","block_type":"box","text":"Regulations related to AI technology could also impose cer tain obligations and costs related to monitoring and","page_number":110,"box":{"x":102,"y":309,"width":786,"height":11}},{"id":"06917b61-b562-498a-abb9-30deb25211f2","block_type":"box","text":"compliance. For example, in April 2023, the Federal Trade Commission, U.S. Depar tment of Justice, Consumer","page_number":110,"box":{"x":69,"y":324,"width":791,"height":11}},{"id":"e783187a-8f17-4479-b724-a945f410ce80","block_type":"box","text":"Financial Protection Bureau, and U.S. Equal Employment Oppor tunity Commission released a joint statement on","page_number":110,"box":{"x":70,"y":340,"width":796,"height":11}},{"id":"c220d2c2-6dc6-4fa2-9397-49f548164e3e","block_type":"box","text":"ar tificial intelligence demonstrating interest in monitoring the development and use of automated systems and","page_number":110,"box":{"x":69,"y":355,"width":788,"height":11}},{"id":"b27a28aa-1285-4600-ae5f-f81dadd01d92","block_type":"box","text":"enforcement of their respective laws and regulations. In October 2023, an executive order established new standards","page_number":110,"box":{"x":69,"y":370,"width":839,"height":11}},{"id":"a4244418-df99-449a-bfdb-cbf9a191be1f","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":110,"box":{"x":68,"y":385,"width":773,"height":11}},{"id":"2a1f8a9a-37a0-4d23-b21f-041ab967f40c","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":110,"box":{"x":70,"y":400,"width":826,"height":11}},{"id":"b4a40424-96df-4483-8048-250fee89981c","block_type":"box","text":"create additional compliance burdens, higher administrative costs, and significant penalties should the Fund, the","page_number":110,"box":{"x":69,"y":415,"width":805,"height":11}},{"id":"5c963b2f-d68a-4568-acc7-c327a90fa411","block_type":"box","text":"adviser, or the Fund’s por tfolio investments fail to comply.","page_number":110,"box":{"x":69,"y":430,"width":412,"height":11}},{"id":"10135eac-85b7-4d91-9046-317c0ddb1088","block_type":"box","text":"AI technology and its applications, including in the investment and financial sectors, continue to develop rapidly,","page_number":110,"box":{"x":101,"y":453,"width":797,"height":11}},{"id":"4bcf5a80-01ca-4bd2-a40e-3195a7abc840","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":110,"box":{"x":69,"y":468,"width":817,"height":11}},{"id":"90dd6f9f-839b-48aa-aa32-665b22d7a9d6","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":110,"box":{"x":68,"y":483,"width":824,"height":11}},{"id":"311d7078-ae46-4127-884c-6762e651b145","block_type":"box","text":"or remediate all of the potential risks, challenges, or impacts of such changes.","page_number":110,"box":{"x":69,"y":498,"width":561,"height":11}},{"id":"533e1183-d367-482e-bed6-44169a926f36","block_type":"box","text":"While the Fund’s service providers are required to have appropriate operational, information security and","page_number":110,"box":{"x":101,"y":521,"width":747,"height":11}},{"id":"44adef9f-6403-434c-8c16-09fec8eb5638","block_type":"box","text":"cybersecurity risk management policies and procedures, their methods of risk management may differ from those of","page_number":110,"box":{"x":69,"y":536,"width":830,"height":11}},{"id":"92c895d6-e2d9-4e26-a442-15d8ca60b999","block_type":"box","text":"the Fund in the setting of priorities, the personnel and resources available or the effectiveness of relevant controls.","page_number":110,"box":{"x":68,"y":551,"width":823,"height":11}},{"id":"d6012bac-3f90-4567-bd4e-3ad0dd25e3cb","block_type":"box","text":"The Fund and its adviser seek to reduce these risks through controls, procedures and oversight, including","page_number":110,"box":{"x":68,"y":566,"width":755,"height":11}},{"id":"f6e3f84d-8975-4a7f-9844-dd0ee4800b24","block_type":"box","text":"establishing business continuity plans and risk management systems. However, there are inherent limitations in such","page_number":110,"box":{"x":69,"y":582,"width":838,"height":11}},{"id":"0ef63f75-07be-4851-b543-5b4cd78a4e08","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":110,"box":{"x":70,"y":596,"width":812,"height":12}},{"id":"04a26074-ce1f-468f-8c58-35a7f68e4f35","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":110,"box":{"x":69,"y":612,"width":828,"height":11}},{"id":"702b6462-039d-4ace-bbb4-9061c51fefef","block_type":"box","text":"effects of operational or information security disruptions or failures or of cybersecurity incidents; or that prevention","page_number":110,"box":{"x":69,"y":627,"width":819,"height":11}},{"id":"416aa414-fb3f-4990-a2de-5977e318d1a5","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":110,"box":{"x":69,"y":642,"width":792,"height":11}},{"id":"c8617c7b-d1e1-4af4-aa55-f98f8877e170","block_type":"box","text":"systems, information security or other cybersecurity of the issuers in which it invests or its service providers,","page_number":110,"box":{"x":69,"y":657,"width":775,"height":11}},{"id":"275f9782-0ea9-4ef3-bd57-3c1a9206f20d","block_type":"box","text":"counterpar ties, and other third par ties whose activities affect the Fund.","page_number":110,"box":{"x":69,"y":672,"width":510,"height":11}},{"id":"1e03fe97-ae52-4ce6-a4fe-6f48943ab8c3","block_type":"box","text":"Lastly, the regulatory climate governing cybersecurity and data protection is developing quickly and may vary","page_number":110,"box":{"x":102,"y":695,"width":771,"height":11}},{"id":"fe9b09ec-cfb9-4c05-8ed0-d927f6a1a382","block_type":"box","text":"considerably across jurisdictions. Regulators continue to develop new rules and standards related to cybersecurity","page_number":110,"box":{"x":69,"y":710,"width":816,"height":11}},{"id":"ddd365a0-a4b3-4cda-a79c-86283e902c11","block_type":"box","text":"and data protection. Compliance with evolving regulations can be demanding and costly, requiring substantial","page_number":110,"box":{"x":69,"y":725,"width":778,"height":11}},{"id":"05102f03-bacd-48fe-b9e0-8f9974fec896","block_type":"box","text":"resources to monitor and implement required changes.","page_number":110,"box":{"x":69,"y":740,"width":391,"height":11}},{"id":"1a33b8fc-3e97-45ee-8dd5-449f78ed83b6","block_type":"box","text":"Participation Notes.","page_number":110,"box":{"x":102,"y":763,"width":145,"height":11}},{"id":"954e9bf0-06de-44d4-a9fb-b51cf3727f4d","block_type":"box","text":"A Fund may buy par ticipation notes from a bank or broker-dealer (“issuer”) that entitle the","page_number":110,"box":{"x":253,"y":763,"width":641,"height":11}},{"id":"2491cf39-6f83-485b-bf03-820ad1220748","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":110,"box":{"x":70,"y":778,"width":766,"height":11}},{"id":"82eb6a93-f308-45c7-82dc-9ee8c4b8b16e","block_type":"box","text":"(collectively, the “underlying security”). Par ticipation notes are typically used when a direct investment in the","page_number":110,"box":{"x":69,"y":793,"width":772,"height":11}},{"id":"77e12247-da45-4986-9961-cd8146321adc","block_type":"box","text":"underlying security is restricted due to country-specific regulations.","page_number":110,"box":{"x":69,"y":808,"width":475,"height":11}},{"id":"faef9ecb-2c13-4fee-832b-24cf74c151f5","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":110,"box":{"x":101,"y":831,"width":782,"height":11}},{"id":"5f70350f-2e6d-4287-9da3-1ccb67764354","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":110,"box":{"x":68,"y":846,"width":831,"height":11}},{"id":"fb94a965-13ca-42b8-ac4c-4b36140f6243","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":110,"box":{"x":69,"y":861,"width":831,"height":11}},{"id":"624fe495-0aae-45e1-a636-8a4929393caf","block_type":"box","text":"par ticipation note does not provide any beneficial or equitable entitlement or interest in the relevant underlying","page_number":110,"box":{"x":70,"y":876,"width":789,"height":11}},{"id":"296a7b65-8fe6-444b-9466-33a38fa7f146","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":110,"box":{"x":69,"y":891,"width":791,"height":12}},{"id":"356c3a73-005e-494d-8e0a-cd79f41809b0","block_type":"box","text":"par ticipation note synthetically replicates the economic benefit of holding shares in the underlying security. Because","page_number":110,"box":{"x":70,"y":906,"width":827,"height":12}},{"id":"7daf226d-8dde-4eb2-b496-5e11344a1da3","block_type":"box","text":"II-64","page_number":110,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2943cddd-125d-4235-bfd4-7bc34c9d5a50","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":110,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9def29e6-f790-4030-84b8-29cf55926667","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":111,"box":{"x":69,"y":45,"width":834,"height":11}},{"id":"cebddc60-32f2-4547-8881-e7a4fef34f3f","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":111,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"025b7dce-7a44-40b2-9327-536f9e9150de","block_type":"box","text":"obligations. A Fund attempts to mitigate that risk by purchasing only from issuers determined to be creditwor thy.","page_number":111,"box":{"x":69,"y":75,"width":801,"height":11}},{"id":"18a005fa-efb1-4685-9887-e009589ae56b","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":111,"box":{"x":101,"y":98,"width":743,"height":11}},{"id":"1cdc20dc-94ca-4e0f-9ebd-536354ab1814","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":111,"box":{"x":69,"y":113,"width":826,"height":11}},{"id":"814a996f-80b4-4ad7-bed8-c262d5bb400e","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":111,"box":{"x":70,"y":128,"width":799,"height":11}},{"id":"8571dce8-7620-4a50-a887-d91bd43edf6c","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":111,"box":{"x":70,"y":143,"width":776,"height":11}},{"id":"45412093-1d9f-4294-a799-84d34abad575","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":111,"box":{"x":68,"y":158,"width":834,"height":11}},{"id":"5f32ccde-1136-47d8-822b-9cca4e9a0b0c","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":111,"box":{"x":69,"y":173,"width":834,"height":11}},{"id":"365e00c5-52f4-47ce-bcd9-8a4117deabcf","block_type":"box","text":"trading market for the security underlying the par ticipation note.","page_number":111,"box":{"x":68,"y":188,"width":454,"height":12}},{"id":"391480f2-3794-4333-b430-9b37751ab7d4","block_type":"box","text":"Portfolio Turnover Rates.","page_number":111,"box":{"x":102,"y":211,"width":181,"height":9}},{"id":"5b0fa885-c7fd-452b-8a4f-73046edec8ea","block_type":"box","text":"A Fund’s annual por tfolio turnover rate will not be a factor preventing a sale or","page_number":111,"box":{"x":289,"y":211,"width":558,"height":11}},{"id":"3973aec9-bc8d-4c1b-808d-21fbc0799044","block_type":"box","text":"purchase when the Manager believes investment considerations warrant such sale or purchase. Although cer tain","page_number":111,"box":{"x":70,"y":226,"width":804,"height":11}},{"id":"ad6911e2-984b-4aad-97d0-bcaab2ed4390","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":111,"box":{"x":70,"y":241,"width":806,"height":11}},{"id":"2d8ef6d2-6f6f-46de-a2d1-b0f170a25e4a","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":111,"box":{"x":69,"y":256,"width":800,"height":11}},{"id":"e2bd8b56-d272-490c-9655-7a60800f6d1e","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":111,"box":{"x":70,"y":271,"width":818,"height":12}},{"id":"6410bd39-7c0a-4954-b5ef-feb337817280","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":111,"box":{"x":68,"y":286,"width":800,"height":12}},{"id":"3742c461-79dc-448d-a7bd-72c656f2e217","block_type":"box","text":"greatly from year to year as well as within a par ticular year. High por tfolio turnover (","page_number":111,"box":{"x":68,"y":302,"width":595,"height":11}},{"id":"4f61c097-4492-4ab5-89ed-8abe57b68b7f","block_type":"box","text":"i.e.","page_number":111,"box":{"x":665,"y":302,"width":20,"height":9}},{"id":"716035f6-f2bc-41b8-8753-540534368f83","block_type":"box","text":", 100% or more) may result in","page_number":111,"box":{"x":687,"y":302,"width":210,"height":11}},{"id":"caa1a23d-fd4a-45d1-a2cf-d8a7f0e8037e","block_type":"box","text":"increased transaction costs to a Fund, including brokerage commissions, dealer mark-ups and other transaction","page_number":111,"box":{"x":70,"y":317,"width":797,"height":11}},{"id":"a3d6949a-1ae6-40cb-a9f8-506a6ac2c73c","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":111,"box":{"x":69,"y":332,"width":832,"height":11}},{"id":"d8194b86-3e49-4ff3-b135-ce1b95ae17fb","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":111,"box":{"x":68,"y":347,"width":831,"height":11}},{"id":"70b88ad4-b9d7-4329-b6f0-1ed6b7c334fb","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":111,"box":{"x":68,"y":362,"width":795,"height":11}},{"id":"9bf2d794-9231-4e61-b148-aa1e85cd9587","block_type":"box","text":"Preferred Stock.","page_number":111,"box":{"x":102,"y":385,"width":118,"height":9}},{"id":"8e424ee6-44f1-4fb8-9ff9-2acc86512a82","block_type":"box","text":"Cer tain Funds may invest in preferred stocks. Preferred stock has a preference over common","page_number":111,"box":{"x":226,"y":385,"width":665,"height":11}},{"id":"24a93108-6cba-48c9-9353-94f6f7a7ec55","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":111,"box":{"x":69,"y":400,"width":808,"height":11}},{"id":"4b9dd665-580d-4c5c-b57c-043f26297f51","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":111,"box":{"x":69,"y":415,"width":834,"height":11}},{"id":"a0300893-7100-4cb8-aa5e-514276e7871c","block_type":"box","text":"varies inversely with interest rates and perceived credit risk, while the market price of conver tible preferred stock","page_number":111,"box":{"x":68,"y":430,"width":808,"height":11}},{"id":"e54b2a64-8df9-437b-b399-bbf4dbf3c27a","block_type":"box","text":"generally also reflects some element of conversion value. Because preferred stock is junior to debt securities and","page_number":111,"box":{"x":68,"y":445,"width":813,"height":12}},{"id":"bc8d44b0-2b2e-4ca9-8b96-042a689066fd","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":111,"box":{"x":69,"y":460,"width":831,"height":12}},{"id":"73b8592a-4837-4a3d-88e8-5d78f953c745","block_type":"box","text":"of a preferred stock than in a more senior debt security with similar stated yield characteristics. Unlike interest","page_number":111,"box":{"x":69,"y":475,"width":791,"height":12}},{"id":"fdbc79b4-0299-4984-b303-9e38cb3bbe83","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":111,"box":{"x":70,"y":491,"width":838,"height":11}},{"id":"7e7304ba-70e1-444e-bc00-93b8b46eb795","block_type":"box","text":"Preferred stock also may be subject to optional or mandatory redemption provisions.","page_number":111,"box":{"x":69,"y":506,"width":604,"height":11}},{"id":"39426ef7-0e05-4f55-a759-88fe0367a6d7","block_type":"box","text":"Tax-Exempt Preferred Shares.","page_number":111,"box":{"x":103,"y":528,"width":207,"height":11}},{"id":"30a69e78-958b-45f6-b345-cef9553b542b","block_type":"box","text":"Cer tain Funds may invest in preferred interests of other investment funds that pay","page_number":111,"box":{"x":316,"y":528,"width":588,"height":12}},{"id":"db1449ca-0d0e-4d57-a921-a13f3c89dfd2","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":111,"box":{"x":69,"y":543,"width":806,"height":12}},{"id":"1cd83d19-4828-48aa-8558-6decce1ea484","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":111,"box":{"x":69,"y":559,"width":814,"height":11}},{"id":"8e3d23a8-597f-43dd-913e-885d9d2d48de","block_type":"box","text":"revenue bonds issued by state or local agencies to fund the development of low-income, multi-family housing.","page_number":111,"box":{"x":69,"y":574,"width":780,"height":11}},{"id":"6732cbf3-1a68-4fb2-851c-68804dc7b03d","block_type":"box","text":"Investment in such tax-exempt preferred shares involves many of the same issues as investing in other investment","page_number":111,"box":{"x":70,"y":589,"width":820,"height":11}},{"id":"e61465f4-ad24-489e-b054-515fc3c16da4","block_type":"box","text":"companies. These investments also have additional risks, including illiquid investments risk, the absence of","page_number":111,"box":{"x":69,"y":604,"width":772,"height":11}},{"id":"353c2d5b-e5b6-4b4a-8749-c7ff6b7079ea","block_type":"box","text":"regulation governing investment practices, capital structure and leverage, affiliated transactions and other matters,","page_number":111,"box":{"x":69,"y":619,"width":821,"height":11}},{"id":"9e49cd2c-e476-4764-aef5-18f0f31bef08","block_type":"box","text":"and concentration of investments in par ticular issuers or industries. The Municipal Bond Funds will treat investments","page_number":111,"box":{"x":69,"y":634,"width":834,"height":11}},{"id":"2eac2f1e-b690-4e1a-bddc-164c0e94d39b","block_type":"box","text":"in tax-exempt preferred shares as investments in municipal bonds.","page_number":111,"box":{"x":70,"y":649,"width":474,"height":11}},{"id":"82922117-6015-49a9-aeb8-62af36c86a39","block_type":"box","text":"Trust Preferred Securities.","page_number":111,"box":{"x":103,"y":672,"width":184,"height":9}},{"id":"c6831154-08f7-43d2-8ffc-bff3952f961b","block_type":"box","text":"Cer tain Funds may invest in trust preferred securities. Trust preferred securities are","page_number":111,"box":{"x":294,"y":672,"width":599,"height":11}},{"id":"4bd8d1b3-4ff3-43ff-88ea-aa0daf965263","block_type":"box","text":"typically issued by corporations, generally in the form of interest bearing notes with preferred securities","page_number":111,"box":{"x":68,"y":687,"width":737,"height":11}},{"id":"8cffa18a-90ce-4f1d-b9c9-5342ad3607a5","block_type":"box","text":"characteristics, or by an affiliated business trust of a corporation, generally in the form of beneficial interests in","page_number":111,"box":{"x":69,"y":702,"width":796,"height":12}},{"id":"c3a39232-d40f-45e5-80b2-b5b137f83361","block_type":"box","text":"subordinated debentures or similarly structured securities. The trust preferred securities market consists of both","page_number":111,"box":{"x":69,"y":717,"width":805,"height":12}},{"id":"77e6f08f-e5f8-4275-a07d-6ccdd3b3f7a7","block_type":"box","text":"fixed and adjustable coupon rate securities that are either perpetual in nature or have stated maturity dates.","page_number":111,"box":{"x":68,"y":732,"width":773,"height":12}},{"id":"32b06e99-d240-4bb2-a013-6470e1b6397a","block_type":"box","text":"Trust preferred securities are typically junior and fully subordinated liabilities of an issuer and benefit from a","page_number":111,"box":{"x":101,"y":755,"width":770,"height":11}},{"id":"b672ff47-7996-4465-be3e-c0eaae6a1026","block_type":"box","text":"guarantee that is junior and fully subordinated to the other liabilities of the guarantor. In addition, trust preferred","page_number":111,"box":{"x":68,"y":770,"width":801,"height":12}},{"id":"c770d18d-b836-4bf5-aad2-a984f31db96e","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":111,"box":{"x":69,"y":785,"width":830,"height":12}},{"id":"f8cf093b-8795-4cdf-8e41-30a56a8ba1d4","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":111,"box":{"x":69,"y":801,"width":822,"height":11}},{"id":"64032169-951f-4740-ac8b-56f487e0bfa7","block_type":"box","text":"for extended periods of time without default consequences to the issuer, and cer tain other features (such as","page_number":111,"box":{"x":68,"y":816,"width":777,"height":11}},{"id":"1e829ad4-6293-40ef-a66d-ef3f97fca67c","block_type":"box","text":"restrictions on common dividend payments by the issuer or ultimate guarantor when full cumulative payments on the","page_number":111,"box":{"x":69,"y":831,"width":831,"height":11}},{"id":"fa1e9310-8048-4a03-abeb-c94027bd62b1","block_type":"box","text":"trust preferred securities have not been made), these trust preferred securities are often treated as close","page_number":111,"box":{"x":68,"y":846,"width":757,"height":11}},{"id":"82fb454f-4176-450d-b2c3-a900b5368b81","block_type":"box","text":"substitutes for traditional preferred securities, both by issuers and investors.","page_number":111,"box":{"x":69,"y":861,"width":548,"height":11}},{"id":"40cd04b1-47ba-49f0-89e2-dd45c046f7ac","block_type":"box","text":"Trust preferred securities include but are not limited to trust originated preferred securities (“TOPRS","page_number":111,"box":{"x":101,"y":884,"width":715,"height":11}},{"id":"7b34eea4-0008-428c-9c77-b79b11a37ef9","block_type":"box","text":"®","page_number":111,"box":{"x":817,"y":884,"width":5,"height":5}},{"id":"91745902-e27f-4464-807e-9e38142bbbda","block_type":"box","text":"”); monthly","page_number":111,"box":{"x":824,"y":884,"width":77,"height":11}},{"id":"a720a28b-f311-4a35-8c1f-992c6304ea26","block_type":"box","text":"income preferred securities (“MIPS","page_number":111,"box":{"x":70,"y":899,"width":248,"height":11}},{"id":"ee07052a-8549-47f0-a8e7-3dbd28920fbb","block_type":"box","text":"®","page_number":111,"box":{"x":319,"y":899,"width":6,"height":5}},{"id":"46875fce-2b46-43d6-8c00-2d84c974e72e","block_type":"box","text":"”); quar terly income bond securities (“QUIBS","page_number":111,"box":{"x":326,"y":899,"width":317,"height":11}},{"id":"550a9cd1-b16e-4065-9f5c-15f83e121192","block_type":"box","text":"®","page_number":111,"box":{"x":644,"y":899,"width":6,"height":5}},{"id":"10b21720-ca87-4a4b-b0f4-91610f9fa554","block_type":"box","text":"” ); quar terly income debt securities","page_number":111,"box":{"x":652,"y":899,"width":255,"height":11}},{"id":"e78ad9e4-777b-44b7-b37d-98c162c6434e","block_type":"box","text":"II-65","page_number":111,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"28fd274f-7c3d-472a-909a-13255b5948f2","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":111,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"98c36341-8c08-4eda-b8ef-a8d55029ab2b","block_type":"box","text":"(“QUIDS","page_number":112,"box":{"x":69,"y":45,"width":57,"height":11}},{"id":"69ddb54a-377c-4e86-b738-2e728c13f5a5","block_type":"box","text":"®","page_number":112,"box":{"x":127,"y":45,"width":6,"height":4}},{"id":"894e871f-d73d-48dc-8fb4-07c14cc4c1c3","block_type":"box","text":"”); quar terly income preferred securities (“QUIPS","page_number":112,"box":{"x":135,"y":45,"width":346,"height":11}},{"id":"2af67e34-d434-4b4f-967d-feb8b9ccc706","block_type":"box","text":"SM","page_number":112,"box":{"x":482,"y":45,"width":11,"height":4}},{"id":"59abd082-e9a2-4df5-8925-a79f9d9eb703","block_type":"box","text":"”); corporate trust securities (“CORTS","page_number":112,"box":{"x":495,"y":45,"width":267,"height":11}},{"id":"f0b429ee-378c-410c-bf0c-7e52b380568a","block_type":"box","text":"®","page_number":112,"box":{"x":762,"y":45,"width":6,"height":4}},{"id":"853f95af-7ecb-41a4-b4ee-c1e43e6b03b8","block_type":"box","text":"”); public income","page_number":112,"box":{"x":770,"y":45,"width":118,"height":11}},{"id":"b6576731-f899-41b4-bdd5-485022857ac6","block_type":"box","text":"notes (“PINES","page_number":112,"box":{"x":69,"y":60,"width":99,"height":11}},{"id":"3ce533e0-ab89-42d1-b15c-bfb6787be36d","block_type":"box","text":"®","page_number":112,"box":{"x":169,"y":60,"width":6,"height":5}},{"id":"f1d91d5a-74a0-4b1b-a7cb-92ceb953a7ce","block_type":"box","text":"”); and other trust preferred securities.","page_number":112,"box":{"x":177,"y":60,"width":275,"height":11}},{"id":"5a046dca-2ef3-4362-93f1-566e16e6aac4","block_type":"box","text":"Trust preferred securities are typically issued with a final maturity date, although some are perpetual in nature.","page_number":112,"box":{"x":101,"y":82,"width":790,"height":12}},{"id":"033ac194-dfdd-4b48-b0f0-98e2e1c9dec6","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":112,"box":{"x":70,"y":98,"width":825,"height":11}},{"id":"20af0fbf-a52c-488d-8593-f21977299332","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":112,"box":{"x":68,"y":113,"width":827,"height":11}},{"id":"0eaf8fa0-a418-4e91-a876-d50a187d7999","block_type":"box","text":"payment obligations have been met, although issuers may be able to engage in open-market repurchases without","page_number":112,"box":{"x":70,"y":128,"width":808,"height":11}},{"id":"1bf4962f-8d00-4894-8194-75b050901cb6","block_type":"box","text":"regard to whether all payments have been paid.","page_number":112,"box":{"x":69,"y":143,"width":338,"height":11}},{"id":"f8cd9c27-3979-4b23-9a1a-7ec76f25ab61","block_type":"box","text":"Many trust preferred securities are issued by trusts or other special purpose entities established by operating","page_number":112,"box":{"x":102,"y":166,"width":784,"height":11}},{"id":"6ff503bd-6408-4566-843a-f844333df97c","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":112,"box":{"x":69,"y":181,"width":811,"height":11}},{"id":"49a8cf65-8137-4c5e-b7fb-aefaafead361","block_type":"box","text":"sells such preferred securities to investors, it purchases debt of the operating company (with terms comparable to","page_number":112,"box":{"x":69,"y":196,"width":817,"height":11}},{"id":"aec1413f-a258-437f-8f9a-1a81dfab2c8c","block_type":"box","text":"those of the trust or special purpose entity securities), which enables the operating company to deduct for tax","page_number":112,"box":{"x":68,"y":211,"width":785,"height":11}},{"id":"6c636b28-19e9-428c-ab24-dad0ebcdc906","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":112,"box":{"x":70,"y":226,"width":830,"height":11}},{"id":"155fc329-c017-45f7-b716-ef26e29bcc7e","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":112,"box":{"x":70,"y":241,"width":819,"height":11}},{"id":"ef45985f-df14-4e1d-9e95-f8a6213d64c0","block_type":"box","text":"trust preferred securities are treated as owning beneficial interests in the underlying debt of the operating company.","page_number":112,"box":{"x":68,"y":256,"width":827,"height":12}},{"id":"7fe7ffe3-1157-4ac8-b9be-9e0aca7700b2","block_type":"box","text":"Accordingly, payments on the trust preferred securities are treated as interest rather than dividends for U.S. federal","page_number":112,"box":{"x":68,"y":271,"width":824,"height":12}},{"id":"98dda414-4016-4b40-8e10-8c7b87da3b84","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":112,"box":{"x":70,"y":286,"width":819,"height":12}},{"id":"a703879a-8a10-4c77-833a-7030e125096b","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":112,"box":{"x":69,"y":302,"width":817,"height":11}},{"id":"2da2a22a-c214-4672-ba16-b780b9e4041d","block_type":"box","text":"common shareholders, but would typically be subordinated to other classes of the operating company’s debt.","page_number":112,"box":{"x":69,"y":317,"width":778,"height":11}},{"id":"6e136a12-040f-48ff-af9e-69ab7f6e7793","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":112,"box":{"x":68,"y":332,"width":811,"height":11}},{"id":"ae5626d8-c753-48ac-af26-2e1c52e0a435","block_type":"box","text":"debt securities.","page_number":112,"box":{"x":69,"y":347,"width":109,"height":9}},{"id":"d7282bc4-6932-4d9a-b47f-3e21e1bd0282","block_type":"box","text":"Real Estate Investment Trusts (“REITs”).","page_number":112,"box":{"x":102,"y":370,"width":300,"height":11}},{"id":"573ea0aa-88b3-4619-be23-b3db47ad900a","block_type":"box","text":"In pursuing its investment strategy, a Fund may invest in shares of","page_number":112,"box":{"x":409,"y":370,"width":473,"height":11}},{"id":"7197ecc5-c554-406e-b6c5-a0c7cbcd3568","block_type":"box","text":"REITs. REITs possess cer tain risks which differ from an investment in common stocks. REITs are financial vehicles","page_number":112,"box":{"x":70,"y":385,"width":814,"height":11}},{"id":"2a7dfa00-1875-4e1d-9bfb-0390d1e2d10d","block_type":"box","text":"that pool investor’s capital to purchase or finance real estate. REITs may concentrate their investments in specific","page_number":112,"box":{"x":68,"y":400,"width":814,"height":11}},{"id":"3f3a5409-5b43-4322-977d-70588bb12517","block_type":"box","text":"geographic areas or in specific proper ty types,","page_number":112,"box":{"x":68,"y":415,"width":329,"height":11}},{"id":"f79c6160-688f-4bc2-9d49-e695b96d70ab","block_type":"box","text":"i.e.","page_number":112,"box":{"x":405,"y":415,"width":20,"height":9}},{"id":"0e05d394-5eab-4c01-8e19-287193708812","block_type":"box","text":", hotels, shopping malls, residential complexes and office","page_number":112,"box":{"x":428,"y":415,"width":411,"height":11}},{"id":"07442fec-a15f-4e90-ab9d-2052b7a5d683","block_type":"box","text":"buildings.","page_number":112,"box":{"x":69,"y":430,"width":66,"height":11}},{"id":"d301ae96-404d-48df-8ae3-7efe40fe71fe","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":112,"box":{"x":102,"y":453,"width":768,"height":11}},{"id":"0890c1fd-3afe-4587-9dce-92712351a41b","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":112,"box":{"x":70,"y":468,"width":824,"height":11}},{"id":"6e0d2bb4-bf35-495b-b938-1b8eeacabf8f","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":112,"box":{"x":70,"y":483,"width":829,"height":11}},{"id":"6a16135c-9de9-40e0-ae40-b1c15fe5200e","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":112,"box":{"x":70,"y":498,"width":813,"height":11}},{"id":"fa32fd65-3dd8-45f4-8a96-84fc580f56b6","block_type":"box","text":"which may secure construction, development or long-term loans; the main source of their income is mor tgage","page_number":112,"box":{"x":68,"y":513,"width":782,"height":12}},{"id":"a6f12b04-c8a6-48e5-b042-3f29df0f1f56","block_type":"box","text":"interest payments. Hybrid REITs hold both ownership and mor tgage interests in real estate.","page_number":112,"box":{"x":70,"y":529,"width":649,"height":11}},{"id":"b20e3eb6-0335-40b8-88f2-10f2872afcde","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":112,"box":{"x":102,"y":551,"width":776,"height":11}},{"id":"670743af-7974-462b-970f-87920148f1dd","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":112,"box":{"x":69,"y":566,"width":822,"height":11}},{"id":"d3b477a0-dc96-4961-b022-1343ec7b0a9f","block_type":"box","text":"adversely affected by several factors, including rising interest rates, changes in the national, state and local","page_number":112,"box":{"x":69,"y":581,"width":769,"height":12}},{"id":"ed36f6fd-7c79-4c6c-809d-ce6cc2a1b17e","block_type":"box","text":"economic climate and real estate conditions, occupancy and rental rates, perceptions of prospective tenants of the","page_number":112,"box":{"x":69,"y":596,"width":822,"height":12}},{"id":"3cffbdcc-4cc2-435a-833b-ed0c533b71d8","block_type":"box","text":"safety, convenience and attractiveness of the proper ties, the ability of the owners to provide adequate management,","page_number":112,"box":{"x":69,"y":612,"width":831,"height":11}},{"id":"6da9772b-3eab-405f-b5f1-f04b2545e395","block_type":"box","text":"maintenance and insurance, the cost of complying with the Americans with Disabilities Act, increased competition","page_number":112,"box":{"x":69,"y":627,"width":810,"height":11}},{"id":"5947b333-eec3-4656-a590-d0b5ae034b73","block_type":"box","text":"from new proper ties, the impact of present or future environmental legislation and compliance with environmental","page_number":112,"box":{"x":68,"y":642,"width":812,"height":11}},{"id":"41d05fc5-2227-48b2-9f54-fc970b61976d","block_type":"box","text":"laws, failing to maintain their exemptions from registration under the Investment Company Act, changes in real estate","page_number":112,"box":{"x":70,"y":657,"width":838,"height":11}},{"id":"30c2967c-039c-4fec-b866-f9ff09d981a6","block_type":"box","text":"taxes and other operating expenses, adverse changes in governmental rules and fiscal policies, adverse changes in","page_number":112,"box":{"x":68,"y":672,"width":826,"height":11}},{"id":"c0b04a2d-6b59-4915-bdd3-a6d86f0e3d5d","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":112,"box":{"x":69,"y":687,"width":817,"height":11}},{"id":"13acc4d6-cb4d-48cb-8ace-75ebbf1123e4","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":112,"box":{"x":70,"y":703,"width":822,"height":11}},{"id":"96a69664-4a07-4e4f-8195-9c2e9e340705","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":112,"box":{"x":70,"y":717,"width":792,"height":12}},{"id":"816cba8c-89d2-47c1-8047-92668228ec10","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":112,"box":{"x":69,"y":732,"width":834,"height":12}},{"id":"ae53846e-c68d-4605-bd9b-2deab0ccf176","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":112,"box":{"x":69,"y":748,"width":798,"height":11}},{"id":"22b1e6ad-f297-4d1f-9615-5bffe8880c3a","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":112,"box":{"x":70,"y":763,"width":818,"height":11}},{"id":"3ea41d38-7a20-4ba6-ad3e-a000cdec0416","block_type":"box","text":"comprised of REIT shares. Ordinary REIT dividends received by the Fund and distributed to the Fund’s shareholders","page_number":112,"box":{"x":69,"y":778,"width":821,"height":11}},{"id":"d3682cc4-795f-4a7c-ad85-4c21548bbe0b","block_type":"box","text":"will generally be taxable as ordinary income and will not constitute “qualified dividend income.” However, a non","page_number":112,"box":{"x":68,"y":793,"width":797,"height":11}},{"id":"583a257b-2703-4800-8efd-2045e4bae7f0","block_type":"box","text":"corporate taxpayer who is a direct REIT shareholder may claim a 20% “qualified business income” deduction for","page_number":112,"box":{"x":69,"y":808,"width":798,"height":11}},{"id":"3f24de4f-f348-4379-9ccb-68e10204306e","block_type":"box","text":"ordinary REIT dividends, and a regulated investment company may repor t dividends as eligible for this deduction to","page_number":112,"box":{"x":69,"y":823,"width":820,"height":12}},{"id":"5b96c4ae-55ac-47ba-b664-2aeca1a7876f","block_type":"box","text":"the extent the regulated investment company’s income is derived from ordinary REIT dividends (reduced by allocable","page_number":112,"box":{"x":68,"y":838,"width":831,"height":12}},{"id":"fd8aa769-bbb9-44f5-8169-83609d118d21","block_type":"box","text":"regulated investment company expenses). A shareholder may treat the dividends as such provided the regulated","page_number":112,"box":{"x":69,"y":854,"width":801,"height":11}},{"id":"b9016c9f-7ba6-45e3-ba95-76ea353474f4","block_type":"box","text":"investment company and the shareholder satisfy applicable holding period requirements.","page_number":112,"box":{"x":70,"y":869,"width":631,"height":11}},{"id":"3cc78542-fb85-46a0-b3ce-caadaf7e39db","block_type":"box","text":"REITs (especially mor tgage REITs) are also subject to interest rate risk. Rising interest rates may cause REIT","page_number":112,"box":{"x":102,"y":891,"width":772,"height":12}},{"id":"4457de9a-aa28-4d32-b8b6-e58f479af745","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":112,"box":{"x":70,"y":906,"width":790,"height":12}},{"id":"59090300-513d-4a47-98f8-9b4d82c870d1","block_type":"box","text":"II-66","page_number":112,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"89e63502-8025-43c7-8b6f-969db0089e79","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":112,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c7ac4e92-7e48-4301-80b1-88f8f2a58582","block_type":"box","text":"securities issued by a REIT. Rising interest rates also generally increase the costs of obtaining financing, which could","page_number":113,"box":{"x":69,"y":45,"width":834,"height":11}},{"id":"ddac85a2-f92d-42b5-96cb-1b5a49af6ec7","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":113,"box":{"x":69,"y":60,"width":837,"height":11}},{"id":"4bacc480-3084-4405-9584-81773bd60ce5","block_type":"box","text":"are often refinanced. Refinancing may reduce the yield on investments in mor tgage REITs. In addition, since REITs","page_number":113,"box":{"x":69,"y":75,"width":812,"height":11}},{"id":"e73fcffb-f022-4ebf-8f57-e086c0f97ac6","block_type":"box","text":"depend on payment under their mor tgage loans and leases to generate cash to make distributions to their","page_number":113,"box":{"x":69,"y":90,"width":759,"height":11}},{"id":"089f0545-ce12-4cfd-aa8a-442001d159f9","block_type":"box","text":"shareholders, investments in REITs may be adversely affected by defaults on such mor tgage loans or leases.","page_number":113,"box":{"x":69,"y":105,"width":778,"height":11}},{"id":"79f8bb6a-d1ca-4e2e-a660-365363572a0c","block_type":"box","text":"Investing in cer tain REITs, which often have small market capitalizations, may also involve the same risks as","page_number":113,"box":{"x":102,"y":128,"width":773,"height":11}},{"id":"8aee49e7-5fd9-4ad0-822a-d3f67094c47a","block_type":"box","text":"investing in other small capitalization companies. REITs may have limited financial resources and their securities may","page_number":113,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"9a75b2d8-eb2a-4d1f-b57d-8c6404950194","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":113,"box":{"x":68,"y":158,"width":839,"height":11}},{"id":"05f91668-d06a-4eff-a410-31b969afa8ea","block_type":"box","text":"company securities. Historically, small capitalization stocks, such as REITs, have been more volatile in price than the","page_number":113,"box":{"x":69,"y":173,"width":832,"height":11}},{"id":"1eace38a-ba41-468b-93c6-231d399e4272","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":113,"box":{"x":70,"y":188,"width":832,"height":12}},{"id":"ba5ec7f7-8302-43e4-9ee5-86fb51041425","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":113,"box":{"x":68,"y":203,"width":815,"height":12}},{"id":"b032951e-9a36-4e15-b27d-6320170cff51","block_type":"box","text":"activities competitive with the REIT. REITs may own proper ties through joint ventures or in other circumstances in","page_number":113,"box":{"x":69,"y":219,"width":804,"height":11}},{"id":"dbc295cf-cc35-4af5-a29a-d8b1ef976b56","block_type":"box","text":"which the REIT may not have control over its investments. REITs may incur significant amounts of leverage.","page_number":113,"box":{"x":68,"y":234,"width":761,"height":11}},{"id":"7d5c43a1-c536-43ff-b678-e3014ebea9c4","block_type":"box","text":"Market Risks/Recent Market Events.","page_number":113,"box":{"x":102,"y":256,"width":275,"height":11}},{"id":"38edff0a-cfaf-4c4e-847d-23df0432d0e4","block_type":"box","text":"Securities may decline in value due to factors affecting securities","page_number":113,"box":{"x":383,"y":256,"width":466,"height":12}},{"id":"2c7988de-1506-4ff1-927d-869ce4005fd1","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":113,"box":{"x":69,"y":271,"width":801,"height":12}},{"id":"e60e6177-9ed7-4f70-a2dc-064057b4d1ef","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":113,"box":{"x":68,"y":286,"width":837,"height":12}},{"id":"d869167a-53a3-459f-bf1a-aa00f241b75f","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":113,"box":{"x":69,"y":302,"width":795,"height":11}},{"id":"97b3f829-7b49-4184-96f5-48c4994622b2","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":113,"box":{"x":68,"y":317,"width":796,"height":11}},{"id":"7466f089-b51b-471b-ac30-bf71780e7421","block_type":"box","text":"activities could be affected by interest rates, availability of credit, inflation rates, economic uncer tainty, changes in","page_number":113,"box":{"x":69,"y":332,"width":817,"height":11}},{"id":"82ed6a61-cc97-45fa-b9b6-623e9e1007b1","block_type":"box","text":"laws, trade barriers, economic sanctions, currency exchange controls, and local, regional or global events such as","page_number":113,"box":{"x":70,"y":347,"width":812,"height":11}},{"id":"92018dad-7c04-4f10-9d88-44f45fbc5e42","block_type":"box","text":"war, acts of terrorism, natural and environmental disasters, the spread of infectious illness or other public health","page_number":113,"box":{"x":68,"y":362,"width":807,"height":11}},{"id":"130b4f17-69c2-4041-825e-b7c80f1758b2","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":113,"box":{"x":70,"y":377,"width":822,"height":12}},{"id":"e1c24956-c063-4947-ae30-ce4063e50385","block_type":"box","text":"economic downturn in the securities markets, multiple asset classes may be negatively affected. These factors may","page_number":113,"box":{"x":69,"y":392,"width":828,"height":12}},{"id":"aeb24ad7-c354-4019-bdd6-d1c54831c7e4","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":113,"box":{"x":69,"y":407,"width":804,"height":12}},{"id":"d333e238-9c71-49de-8f0c-dcbfa60d99a7","block_type":"box","text":"Fund’s profitability or result in losses. A Fund may maintain substantial trading positions that can be adversely","page_number":113,"box":{"x":70,"y":423,"width":787,"height":11}},{"id":"86a72ddc-95af-4249-a1b5-aba9d93615b1","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":113,"box":{"x":69,"y":438,"width":819,"height":11}},{"id":"383fe5f2-10fe-4f21-8b53-e94c108ba5cb","block_type":"box","text":"Unpredictable or unstable market conditions may result in reduced oppor tunities to find suitable investments to","page_number":113,"box":{"x":70,"y":453,"width":796,"height":11}},{"id":"b0874594-3498-46d2-9b6e-3c72f78fc6a4","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":113,"box":{"x":69,"y":468,"width":832,"height":11}},{"id":"cfc21b17-7dd8-4eea-b6a0-eba27ffea68c","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":113,"box":{"x":69,"y":483,"width":831,"height":11}},{"id":"e2774baf-d96c-4c0b-bdab-2198b0271e2a","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":113,"box":{"x":69,"y":498,"width":776,"height":11}},{"id":"ccbc0083-5a8b-40d9-8bab-426725b9e957","block_type":"box","text":"conditions.","page_number":113,"box":{"x":69,"y":514,"width":76,"height":8}},{"id":"9a83de18-a258-499f-a034-2eecb79f9271","block_type":"box","text":"Periods of unusually high volatility in the financial markets and restrictive credit conditions, sometimes limited to","page_number":113,"box":{"x":102,"y":536,"width":802,"height":11}},{"id":"a99cab8c-a6b6-4b42-bea0-ff030e24b803","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":113,"box":{"x":69,"y":551,"width":829,"height":11}},{"id":"871b2fed-9d78-4cd2-a218-61cb70f055b5","block_type":"box","text":"considering the adoption of more protectionist trade policies, a move away from the tighter financial industry","page_number":113,"box":{"x":69,"y":566,"width":775,"height":11}},{"id":"6511eb03-28c9-47db-a5ab-7dde57c4bad9","block_type":"box","text":"regulations that followed the financial crisis of 2008, and/or substantially reducing corporate taxes. The exact shape","page_number":113,"box":{"x":69,"y":581,"width":833,"height":12}},{"id":"464223b4-30d6-498c-96dd-d85e68f193c7","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":113,"box":{"x":69,"y":596,"width":799,"height":12}},{"id":"524ee290-e2a3-47ee-acf2-061c4fc5a418","block_type":"box","text":"change, which could increase volatility, especially if the market’s expectations are not borne out. A rise in","page_number":113,"box":{"x":69,"y":612,"width":751,"height":11}},{"id":"63fdc08f-a790-4beb-b747-34733e785e0a","block_type":"box","text":"protectionist trade policies, and the possibility of changes to some international trade agreements, could affect the","page_number":113,"box":{"x":70,"y":627,"width":822,"height":11}},{"id":"eeff67b1-e82e-49ff-b218-3fb769c9587c","block_type":"box","text":"economies of many nations in ways that cannot necessarily be foreseen at the present time. In addition, geopolitical","page_number":113,"box":{"x":69,"y":642,"width":831,"height":11}},{"id":"07c2b96b-a2bf-4466-b12c-6e4f7945f0f3","block_type":"box","text":"and other risks, including environmental and public health, may add to instability in world economies and markets","page_number":113,"box":{"x":69,"y":657,"width":810,"height":11}},{"id":"bcf83dbe-2f2c-403c-afad-d1e0e2230770","block_type":"box","text":"generally. Economies and financial markets throughout the world are increasingly interconnected. As a result, whether","page_number":113,"box":{"x":68,"y":672,"width":841,"height":11}},{"id":"4f10c54e-22ac-4dcb-af66-0ddf9d73a0d7","block_type":"box","text":"or not a Fund invests in securities of issuers located in or with significant exposure to countries experiencing","page_number":113,"box":{"x":69,"y":687,"width":775,"height":11}},{"id":"47128e8b-1fc3-4887-a075-e520b0849711","block_type":"box","text":"economic, political and/or financial difficulties, the value and liquidity of the Fund’s investments may be negatively","page_number":113,"box":{"x":69,"y":702,"width":818,"height":12}},{"id":"1c6d158e-fb63-44c8-969d-6e7f9aca5edf","block_type":"box","text":"affected by such events.","page_number":113,"box":{"x":69,"y":717,"width":173,"height":12}},{"id":"784f794e-58b6-4b35-9f0c-d3ce469067e7","block_type":"box","text":"Governments and regulators may take actions that affect the regulation of the Fund or the instruments in which","page_number":113,"box":{"x":102,"y":740,"width":795,"height":11}},{"id":"98cdc10d-3875-4e9c-890e-4c78b7cfca67","block_type":"box","text":"the Fund invests, or the issuers of such instruments, in ways that are unforeseeable. Future legislation or regulation","page_number":113,"box":{"x":68,"y":755,"width":830,"height":11}},{"id":"add054db-5f76-42a7-b824-2431be3a8063","block_type":"box","text":"or other governmental actions could limit or preclude the Fund’s abilities to achieve its investment objectives or","page_number":113,"box":{"x":69,"y":771,"width":796,"height":11}},{"id":"c63871e3-778f-4eee-8363-abc711bd387c","block_type":"box","text":"otherwise adversely impact an investment in the Fund. Recent policy initiatives under taken by the U.S. government","page_number":113,"box":{"x":69,"y":786,"width":820,"height":11}},{"id":"756e1c47-642b-43f4-8ea9-081aaf6acc50","block_type":"box","text":"have the potential to impact international relations, trade agreements and the overall regulatory environment in ways","page_number":113,"box":{"x":69,"y":801,"width":833,"height":11}},{"id":"686ce694-2950-4650-b75f-0b68747fc1b7","block_type":"box","text":"that could create uncer tainty and instability in domestic and global markets and could adversely affect the","page_number":113,"box":{"x":68,"y":816,"width":759,"height":11}},{"id":"91564d35-751d-4447-955f-66b8d318252f","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":113,"box":{"x":70,"y":831,"width":819,"height":11}},{"id":"27acf30d-473e-4728-b352-3baa881fb0b4","block_type":"box","text":"trade relations could lead to trade wars, increased costs for impor ted goods, disruptions in supply chains, reduced","page_number":113,"box":{"x":68,"y":846,"width":821,"height":11}},{"id":"0e979458-3e39-4b1a-b4d5-369fde30c39a","block_type":"box","text":"foreign investment, and instability in regions where the Fund invests. Political and diplomatic events within the United","page_number":113,"box":{"x":68,"y":861,"width":837,"height":11}},{"id":"5aaee917-724c-4d26-a4f0-0aa83f8862a8","block_type":"box","text":"States, including a contentious domestic political environment, changes in political par ty control of one or more","page_number":113,"box":{"x":69,"y":876,"width":795,"height":11}},{"id":"f203c84a-3b9e-4b21-b737-a80ca9bb44c0","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":113,"box":{"x":69,"y":891,"width":836,"height":12}},{"id":"39baa1ce-f3c0-4250-ba7b-db9159cbb8f8","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":113,"box":{"x":69,"y":906,"width":817,"height":12}},{"id":"70b66497-c6d0-4660-8bb6-c155e0943127","block_type":"box","text":"II-67","page_number":113,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"74bcca2d-5259-4f29-ba3f-9786deeea696","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":113,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d8292bb4-b1ab-4b00-a1ff-bf9198ed69fa","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":114,"box":{"x":70,"y":45,"width":816,"height":11}},{"id":"7caaf8d9-aded-430d-bd78-1c6c652985b0","block_type":"box","text":"investor and consumer confidence and may adversely impact financial markets and the broader economy, perhaps","page_number":114,"box":{"x":70,"y":60,"width":813,"height":11}},{"id":"cf30084d-b5fa-4f9c-b873-7b8f14337472","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":114,"box":{"x":69,"y":75,"width":815,"height":11}},{"id":"922ca795-b057-4a4e-9d10-2b6f63062200","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":114,"box":{"x":69,"y":90,"width":836,"height":11}},{"id":"26714a64-5f28-4245-be68-1ae42468d776","block_type":"box","text":"economies. For example, concerns about the U.S. Government’s credit quality may cause increased volatility in the","page_number":114,"box":{"x":69,"y":105,"width":820,"height":11}},{"id":"5f5d9c78-ae4d-4ea0-b7c4-9ab9cfc182a3","block_type":"box","text":"stock and bond markets, higher interest rates, reduced prices and liquidity of U.S. Treasury securities, and/or","page_number":114,"box":{"x":69,"y":120,"width":785,"height":12}},{"id":"2bc10603-d9ce-49f3-91fa-68efa45e7efe","block_type":"box","text":"increased costs of various kinds of debt. Moreover, although the U.S. Government has honored its credit obligations,","page_number":114,"box":{"x":70,"y":135,"width":832,"height":12}},{"id":"71d71c33-0a79-4932-ac51-a03b4abb3761","block_type":"box","text":"there remains a possibility that the United States could default on its obligations. The consequences of such an","page_number":114,"box":{"x":68,"y":150,"width":799,"height":12}},{"id":"5b2427f0-8798-454f-b1f6-8022c103c3fb","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":114,"box":{"x":69,"y":166,"width":802,"height":11}},{"id":"10455adf-ae43-40eb-bbf1-58f7353f207c","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":114,"box":{"x":69,"y":181,"width":746,"height":11}},{"id":"f66aeebd-cc3a-4970-8110-6acd6f6c32ea","block_type":"box","text":"investments.","page_number":114,"box":{"x":70,"y":196,"width":89,"height":9}},{"id":"82b957de-5a40-44fd-8242-ff13eac4509e","block_type":"box","text":"The COVID-19 pandemic resulted in significant market volatility, exchange suspensions and closures, declines in","page_number":114,"box":{"x":101,"y":218,"width":802,"height":12}},{"id":"cd75aff2-f212-4019-9ea0-49c3d9a3c5ad","block_type":"box","text":"global financial markets, higher default rates, supply chain disruptions, and a substantial economic downturn in","page_number":114,"box":{"x":68,"y":234,"width":796,"height":11}},{"id":"a5cb442d-0e2c-4adf-8fd4-b52322d30826","block_type":"box","text":"economies throughout the world. The impact of this coronavirus, and other epidemics and pandemics that may arise","page_number":114,"box":{"x":69,"y":249,"width":830,"height":11}},{"id":"6c79bf73-84f8-4e83-a4eb-29146c6bd593","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":114,"box":{"x":70,"y":264,"width":813,"height":11}},{"id":"5be2a8f8-7eec-4e2e-b33d-39ad3062a032","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":114,"box":{"x":68,"y":279,"width":812,"height":11}},{"id":"9130c28d-885c-4b87-bc1c-9ad1af30eb06","block_type":"box","text":"may exacerbate other pre-existing political, social and economic risks, disrupt normal market conditions and","page_number":114,"box":{"x":69,"y":294,"width":771,"height":11}},{"id":"f29f758b-8560-4209-b1f7-31dc16631912","block_type":"box","text":"operations, and negatively impact per formance. In addition, the impact of infectious diseases in emerging developing","page_number":114,"box":{"x":69,"y":309,"width":837,"height":11}},{"id":"5ecbc4fe-8d37-407c-bc8d-80508ade978f","block_type":"box","text":"or emerging market countries may be greater due to less established health care systems.","page_number":114,"box":{"x":69,"y":325,"width":646,"height":11}},{"id":"1dbc113f-3c14-48d8-a26f-9649503702ed","block_type":"box","text":"Legal and Regulatory Risks.","page_number":114,"box":{"x":102,"y":347,"width":197,"height":11}},{"id":"9c2b24e6-4ebe-4cf6-a98c-029623bcbff1","block_type":"box","text":"The Manager is par t of a larger firm with multiple business lines active in multiple","page_number":114,"box":{"x":305,"y":347,"width":583,"height":11}},{"id":"7ade97a7-2355-4272-bf20-28b798408267","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":114,"box":{"x":67,"y":362,"width":819,"height":11}},{"id":"88852d33-8219-4fd5-a196-4d39fc21e178","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":114,"box":{"x":69,"y":377,"width":820,"height":12}},{"id":"5b94da5d-79b0-4338-b00b-f9ad46f15917","block_type":"box","text":"tax and regulatory risks, including changing laws and regulations, developing interpretations of such laws and","page_number":114,"box":{"x":68,"y":392,"width":781,"height":12}},{"id":"ca97a305-d8df-48d0-95f6-3cd3dc8798c5","block_type":"box","text":"regulations, as well as existing laws, and increased scrutiny by regulators and law enforcement authorities.","page_number":114,"box":{"x":69,"y":407,"width":763,"height":12}},{"id":"5315775e-1852-47da-a1fc-64fefe0cac4e","block_type":"box","text":"Unexpected economic, political, regulatory and diplomatic events within the United States and abroad can trigger new","page_number":114,"box":{"x":70,"y":423,"width":838,"height":11}},{"id":"5d773c0d-ce16-4bc5-b819-fcbde6e96e4a","block_type":"box","text":"and complex regulations that the Manager and/or the Funds may need to comply with. The implementation of","page_number":114,"box":{"x":69,"y":438,"width":781,"height":11}},{"id":"46e35eec-0d4c-4ce7-b4ee-53fa41bdeca3","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":114,"box":{"x":69,"y":453,"width":807,"height":11}},{"id":"0783e732-b3a7-430b-b05d-408ae51285fb","block_type":"box","text":"material adverse effect on the Funds (including by imposing material costs on the Funds, reducing profit margins,","page_number":114,"box":{"x":69,"y":468,"width":807,"height":11}},{"id":"f912f1ca-ccd1-48c1-be30-6992eb1046cc","block_type":"box","text":"reducing investment oppor tunities or by otherwise restricting the Funds and/or the Manager).","page_number":114,"box":{"x":69,"y":483,"width":666,"height":11}},{"id":"a7d077ae-41b9-4c26-9d58-7b4ace83a65f","block_type":"box","text":"Tariff and Trade Policy Risks.","page_number":114,"box":{"x":103,"y":506,"width":202,"height":11}},{"id":"14c7e1f7-ec64-4763-a100-69701c20b0e3","block_type":"box","text":"Some countries, including the U.S., have adopted more protectionist trade policies.","page_number":114,"box":{"x":312,"y":506,"width":593,"height":11}},{"id":"6c207280-a49c-4b32-b4a5-df83ba4a5d64","block_type":"box","text":"The U.S. government recently altered its approach to international trade policy, resulting in significant impacts on","page_number":114,"box":{"x":68,"y":521,"width":806,"height":11}},{"id":"3f1594ad-ee5e-41c5-9878-de0cc5a5d8b6","block_type":"box","text":"international trade relations, cer tain tax and immigration policies, and other aspects of the national and international","page_number":114,"box":{"x":70,"y":536,"width":833,"height":11}},{"id":"39e91e01-ae23-45a7-aa62-22a19a7159f2","block_type":"box","text":"political and financial landscape. The rise in protectionist trade policies, slowing economic growth, changes to some","page_number":114,"box":{"x":70,"y":551,"width":827,"height":11}},{"id":"92d43396-a515-4093-8fb3-367bb9277de5","block_type":"box","text":"major international trade agreements, risks associated with trade agreements between the U.S. and the European","page_number":114,"box":{"x":69,"y":566,"width":814,"height":11}},{"id":"9a64e4ad-7d29-4b96-ae1a-02b5f1afff4a","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":114,"box":{"x":70,"y":581,"width":821,"height":12}},{"id":"751e7ce3-a9c5-4ce1-99e7-edd10c4562fe","block_type":"box","text":"many nations in ways that cannot necessarily be foreseen at the present time.","page_number":114,"box":{"x":69,"y":596,"width":559,"height":12}},{"id":"ba00abae-81df-4bb3-b7e0-5e66dee48b29","block_type":"box","text":"Global trade disruption, significant introductions of trade barriers, and bilateral trade frictions, together with any","page_number":114,"box":{"x":102,"y":619,"width":796,"height":11}},{"id":"c6b0e905-1763-4de6-845b-02d30aadea60","block_type":"box","text":"future downturns in the global economy resulting therefrom, could adversely affect the financial per formance of a","page_number":114,"box":{"x":68,"y":634,"width":809,"height":12}},{"id":"38cc0028-2678-4843-9805-08df59ad42a8","block_type":"box","text":"Fund and its investments. Trade policy may be an ongoing source of instability, potentially resulting in significant","page_number":114,"box":{"x":70,"y":649,"width":799,"height":12}},{"id":"28f212b4-02a0-45a9-88bf-85ea9a4d74d4","block_type":"box","text":"currency fluctuations and/or having other adverse effects on international markets, international trade agreements,","page_number":114,"box":{"x":69,"y":664,"width":823,"height":12}},{"id":"fd5a0c48-0c98-430e-9e68-78b17ff4d237","block_type":"box","text":"and/or other existing cross-border cooperation arrangements (whether economic, tax, fiscal, legal, regulatory, or","page_number":114,"box":{"x":69,"y":680,"width":801,"height":11}},{"id":"a671e36e-c675-49e5-90cb-66c3bfe654bc","block_type":"box","text":"otherwise). To the extent trade disputes escalate globally, there could be additional significant impacts on the","page_number":114,"box":{"x":69,"y":695,"width":783,"height":11}},{"id":"09b990f0-cc69-466e-842f-4c4eea5566b6","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":114,"box":{"x":69,"y":710,"width":753,"height":11}},{"id":"e9ec0810-db7a-47e9-ba23-16799a709b68","block_type":"box","text":"Geographic Risks","page_number":114,"box":{"x":102,"y":733,"width":123,"height":11}},{"id":"bc9f2b1c-a5ad-4c41-9a3d-f17417ca89ad","block_type":"box","text":". Some of the companies in which the Fund invests may be located in, or otherwise connected","page_number":114,"box":{"x":226,"y":732,"width":671,"height":12}},{"id":"09b883bd-7af3-4940-955d-0bb9c68fa8b3","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":114,"box":{"x":68,"y":748,"width":835,"height":11}},{"id":"f140230d-fb79-4887-91c3-8e9324df6f5d","block_type":"box","text":"wildfires, droughts, floods, hurricanes or tsunamis, and are economically sensitive to environmental events. In","page_number":114,"box":{"x":68,"y":763,"width":787,"height":11}},{"id":"65269461-6e4e-4809-b5bd-691ac0081fda","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":114,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"e028a7f0-38b9-48ce-afab-6b912d1f8fef","block_type":"box","text":"types of conflict, terrorism, strained international relations and territorial disputes. Any of these events may adversely","page_number":114,"box":{"x":68,"y":793,"width":840,"height":11}},{"id":"f6642bee-4ac9-4fcb-9d99-fdd554507908","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":114,"box":{"x":69,"y":808,"width":824,"height":11}},{"id":"913b62c9-3d0e-42ce-8022-b045d47e7310","block_type":"box","text":"Fund.","page_number":114,"box":{"x":70,"y":823,"width":36,"height":9}},{"id":"38d8957a-af6c-4ca3-bbac-842bf5ec248d","block_type":"box","text":"Reference Rate Replacement Risk.","page_number":114,"box":{"x":102,"y":846,"width":255,"height":11}},{"id":"1a5365d8-e882-424f-9c88-6a012ee6ad80","block_type":"box","text":"A Fund’s investments, payment obligations and financing terms may be","page_number":114,"box":{"x":363,"y":846,"width":508,"height":11}},{"id":"2e4c4153-f55b-4746-a4b6-1c761bacf3df","block_type":"box","text":"based on floating rates, such as the Secured Overnight Financing Rate (“SOFR”), Sterling Overnight Interbank Average","page_number":114,"box":{"x":69,"y":861,"width":839,"height":11}},{"id":"26b88e70-f5e8-4935-a730-fe51e33185f5","block_type":"box","text":"Rate (“SONIA”), and other similar types of reference rates (“Reference Rates”). The elimination of a Reference Rate","page_number":114,"box":{"x":70,"y":876,"width":825,"height":11}},{"id":"619b247f-df37-4a0c-9ea5-3662cc40e481","block_type":"box","text":"or any other changes or reforms to the determination or supervision of a Reference Rate could have an adverse","page_number":114,"box":{"x":69,"y":891,"width":797,"height":12}},{"id":"3bf4aa43-eb76-4d19-82c2-a53d00166b9b","block_type":"box","text":"impact on the market for, or value of, any instruments (including debt instruments and cer tain derivative instruments)","page_number":114,"box":{"x":70,"y":906,"width":837,"height":12}},{"id":"5341df17-34fb-49a6-9e90-1874d69d6543","block_type":"box","text":"II-68","page_number":114,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"5fa6633a-6bcb-4987-9f67-3033b5dfb0a3","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":114,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4eaa19f9-dc7e-4ca1-a046-5ee9178c19d3","block_type":"box","text":"or payments linked to those Reference Rates. In addition, any substitute Reference Rate and any pricing adjustments","page_number":115,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"7cbad440-0a90-4b8f-87e5-66c7a1358f45","block_type":"box","text":"imposed by a regulator or by counterpar ties or otherwise may adversely affect a Fund’s per formance and/or net","page_number":115,"box":{"x":70,"y":60,"width":800,"height":11}},{"id":"5a4a62e4-b3f2-4f2f-b2fe-52daf3a37a69","block_type":"box","text":"asset value. The London Interbank Offered Rate (“LIBOR”) had historically been used extensively in the U.S. and","page_number":115,"box":{"x":69,"y":75,"width":800,"height":11}},{"id":"61194c70-be9d-4bb1-95d8-acc1ae23a85d","block_type":"box","text":"globally as a “benchmark” or “reference rate” for various commercial and financial contracts, including corporate and","page_number":115,"box":{"x":68,"y":90,"width":836,"height":11}},{"id":"ea9c79de-14a0-4468-83d6-842bfb221a6f","block_type":"box","text":"municipal bonds, bank loans, asset-backed and mor tgage-related securities, interest rate swaps and other","page_number":115,"box":{"x":69,"y":105,"width":761,"height":11}},{"id":"2e1cf6e8-c0a2-416c-b2b3-66326b2988e0","block_type":"box","text":"derivatives. Instruments in which a Fund may have historically paid interest at floating rates based on LIBOR or may","page_number":115,"box":{"x":69,"y":120,"width":824,"height":12}},{"id":"d2918dbd-7ab5-46ea-98db-e73bd3d5e292","block_type":"box","text":"have been subject to interest caps or floors based on LIBOR. The Funds and issuers of instruments in which a Fund","page_number":115,"box":{"x":69,"y":135,"width":825,"height":11}},{"id":"41e76f95-e5b9-48b5-a1c1-7dbad145f9dd","block_type":"box","text":"invests may have also historically obtained financing at floating rates based on LIBOR. In connection with the global","page_number":115,"box":{"x":70,"y":150,"width":822,"height":12}},{"id":"76e4e7c0-ae5b-487d-a6b5-a1d2d43d4003","block_type":"box","text":"transition away from LIBOR led by regulators and market par ticipants as a result of benchmark reforms, LIBOR was","page_number":115,"box":{"x":68,"y":166,"width":822,"height":11}},{"id":"218a09fe-7198-4337-880c-6b91165da55a","block_type":"box","text":"last published on a representative basis at the end of June 2023. Alternative Reference Rates to LIBOR have been","page_number":115,"box":{"x":70,"y":181,"width":817,"height":11}},{"id":"9e5718f6-00f2-446b-a0ca-d3e2a3fa2eb8","block_type":"box","text":"established in most major currencies and markets in these alternative rates are continuing to develop (","page_number":115,"box":{"x":69,"y":196,"width":736,"height":11}},{"id":"0c64e281-17ca-412e-b2a1-f02448754fda","block_type":"box","text":"e.g.","page_number":115,"box":{"x":807,"y":197,"width":25,"height":10}},{"id":"a55f18d4-8cd9-410b-a3c5-98263289607b","block_type":"box","text":", SOFR for","page_number":115,"box":{"x":835,"y":196,"width":70,"height":10}},{"id":"1ffc8edb-f1c9-433e-85ed-17897c2d168e","block_type":"box","text":"USD-LIBOR and SONIA for GBP-LIBOR). While the transition from LIBOR has gone relatively smoothly, residual risks","page_number":115,"box":{"x":70,"y":211,"width":814,"height":11}},{"id":"ade1577a-1e3e-42ff-8357-3dc0e601d520","block_type":"box","text":"associated with the transition may remain that may impact markets or par ticular investments and, as such, the full","page_number":115,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"3e78ef75-4cb3-431e-9014-439d27a1b8c2","block_type":"box","text":"impact of the transition on the Funds or the financial instruments in which the Funds invest cannot yet be fully","page_number":115,"box":{"x":70,"y":241,"width":784,"height":11}},{"id":"905e215b-fa80-47e0-b0c0-0fade3e0d078","block_type":"box","text":"determined.","page_number":115,"box":{"x":69,"y":257,"width":84,"height":8}},{"id":"252dc191-5164-41f2-8654-7696521ab38b","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":115,"box":{"x":102,"y":279,"width":750,"height":11}},{"id":"f85028eb-fe51-4b54-b00a-56cd2187cf41","block_type":"box","text":"collateralized by U.S. Treasury securities. SOFR is calculated based on transaction-level repo data collected from","page_number":115,"box":{"x":69,"y":294,"width":803,"height":11}},{"id":"00f0de2d-b668-41a3-8c28-0043065771aa","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":115,"box":{"x":68,"y":309,"width":831,"height":11}},{"id":"55ec7332-6b4b-4f74-9bec-55a768e60737","block_type":"box","text":"Because SOFR is a financing rate based on overnight secured funding transactions, it differs fundamentally from","page_number":115,"box":{"x":70,"y":324,"width":801,"height":12}},{"id":"c17587a3-1bd8-4505-a1dc-176dee8367d3","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":115,"box":{"x":70,"y":339,"width":810,"height":12}},{"id":"1521a087-ebdb-4040-9dc2-98047b271f08","block_type":"box","text":"maturities or tenors. It is a forward-looking rate reflecting expectations regarding interest rates for the applicable","page_number":115,"box":{"x":69,"y":355,"width":803,"height":11}},{"id":"d09ac0aa-f80f-4870-b7f3-a85e59472623","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":115,"box":{"x":68,"y":370,"width":825,"height":11}},{"id":"c037e9c6-811a-49d8-8b58-c76609571073","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":115,"box":{"x":70,"y":385,"width":828,"height":11}},{"id":"4496c893-a4a7-455f-9d70-a6ca78b29887","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":115,"box":{"x":70,"y":400,"width":838,"height":11}},{"id":"ef046fb4-5857-46da-ba43-238a2547a98d","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":115,"box":{"x":69,"y":415,"width":796,"height":11}},{"id":"9ea22603-6a23-4543-b8ff-04ea08449f49","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":115,"box":{"x":70,"y":430,"width":836,"height":11}},{"id":"01c243b9-1acd-4796-8c4e-6e8157ce5aac","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":115,"box":{"x":70,"y":445,"width":824,"height":11}},{"id":"ffee1c06-a992-41ee-b989-74dc4ee5bcca","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":115,"box":{"x":69,"y":460,"width":830,"height":12}},{"id":"3b2c8b57-3ca8-4d48-886c-dbcc933519a8","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":115,"box":{"x":69,"y":475,"width":809,"height":11}},{"id":"3167205f-3482-47b3-8eaa-6fbe00d05686","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":115,"box":{"x":69,"y":491,"width":827,"height":11}},{"id":"a7425fb3-b733-4a70-92f3-c1818af9a506","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":115,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"019eb4e0-5313-48a4-a682-0512bf2c3bfd","block_type":"box","text":"that is materially adverse to the interests of the Fund.","page_number":115,"box":{"x":68,"y":521,"width":384,"height":11}},{"id":"b964a8c8-14dd-40db-ade2-edab09984562","block_type":"box","text":"In addition, interest rates or other types of rates and indices which are classified as “benchmarks” have been","page_number":115,"box":{"x":102,"y":543,"width":782,"height":12}},{"id":"f663d5d5-2d64-4422-b884-bf1a0f36091c","block_type":"box","text":"the subject of ongoing national and international regulatory reform, including under the European Union (“EU”)","page_number":115,"box":{"x":68,"y":559,"width":786,"height":11}},{"id":"493c4547-9955-44da-bb63-ee7da43e87cf","block_type":"box","text":"regulation on indices used as benchmarks in financial instruments and financial contracts (known as the","page_number":115,"box":{"x":69,"y":574,"width":746,"height":11}},{"id":"746247a0-8513-40b0-b36e-c4c1a65931ef","block_type":"box","text":"“Benchmarks Regulation”). The Benchmarks Regulation has been enacted into United Kingdom (“UK”) law by vir tue","page_number":115,"box":{"x":70,"y":589,"width":822,"height":11}},{"id":"398239b9-5a68-4c5d-b6cc-94f9166c2932","block_type":"box","text":"of the EU (Withdrawal) Act 2018 (as amended), subject to amendments made by the Benchmarks (Amendment and","page_number":115,"box":{"x":69,"y":604,"width":821,"height":11}},{"id":"3d124139-c0a5-4908-9f48-453653dbb064","block_type":"box","text":"Transitional Provision) (EU Exit) Regulations 2019 (SI 2019/657) and other statutory instruments. Following the","page_number":115,"box":{"x":68,"y":619,"width":799,"height":11}},{"id":"6022986f-ff0c-4617-ae03-e581cbc5911c","block_type":"box","text":"implementation of these reforms, the manner of administration of benchmarks has changed and may fur ther change","page_number":115,"box":{"x":70,"y":634,"width":830,"height":12}},{"id":"83b475e5-b4f1-4847-8297-f475fc32de31","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":115,"box":{"x":70,"y":649,"width":757,"height":12}},{"id":"3a637069-54f2-4d40-816f-81c9fc89e2d8","block_type":"box","text":"benchmarks that are not compliant with the new standards by cer tain supervised entities may be restricted, and","page_number":115,"box":{"x":69,"y":665,"width":802,"height":11}},{"id":"1f76b1ef-3704-4b08-af9e-0b7750a68ef7","block_type":"box","text":"cer tain benchmarks may be eliminated entirely. Such changes could cause increased market volatility and disruptions","page_number":115,"box":{"x":69,"y":680,"width":840,"height":11}},{"id":"77e36c7f-7b79-4dd2-89dd-9cecf45070e6","block_type":"box","text":"in liquidity for instruments that rely on or are impacted by such benchmarks. Additionally, there could be other","page_number":115,"box":{"x":70,"y":695,"width":782,"height":11}},{"id":"48a4cecf-8cfb-47dd-8596-1e7fbc502a8d","block_type":"box","text":"consequences which cannot be predicted.","page_number":115,"box":{"x":69,"y":710,"width":298,"height":11}},{"id":"fca9891d-dacb-4ffe-a099-ef0b0c1bd087","block_type":"box","text":"Repurchase Agreements and Purchase and Sale Contracts.","page_number":115,"box":{"x":102,"y":733,"width":432,"height":11}},{"id":"a8ee3451-8ef0-4d2a-b8f3-21eec74ad92a","block_type":"box","text":"Under repurchase agreements and purchase and","page_number":115,"box":{"x":541,"y":733,"width":347,"height":11}},{"id":"74f49a3e-4b9e-40d8-8659-578ec146bc81","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":115,"box":{"x":69,"y":748,"width":821,"height":11}},{"id":"5c7685a0-b108-420b-8f1a-48349bb80e1a","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":115,"box":{"x":68,"y":763,"width":815,"height":11}},{"id":"c69b4295-6924-4f86-a9de-32fb25d40c93","block_type":"box","text":"term of the agreement.","page_number":115,"box":{"x":68,"y":778,"width":164,"height":11}},{"id":"634cf170-bbdf-4353-b15c-1d01e277d055","block_type":"box","text":"A purchase and sale contract differs from a repurchase agreement in that the contract arrangements stipulate","page_number":115,"box":{"x":101,"y":801,"width":788,"height":11}},{"id":"b4ca0f6d-3e03-41da-964e-231a89cbf35f","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":115,"box":{"x":68,"y":816,"width":831,"height":11}},{"id":"c465e923-ffd1-4383-9c3f-6f306fd17caa","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":115,"box":{"x":70,"y":831,"width":821,"height":11}},{"id":"dad178d3-ca80-4589-9392-35c9bb465542","block_type":"box","text":"on the underlying obligation; whereas, in the case of purchase and sale contracts, the prices take into account","page_number":115,"box":{"x":69,"y":846,"width":790,"height":11}},{"id":"23edcf0a-cc09-40ba-9fe8-7750d1fd1b5a","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":115,"box":{"x":69,"y":861,"width":827,"height":11}},{"id":"83073552-8b53-44c0-92aa-a125ffc199f0","block_type":"box","text":"unaffiliated third-par ty custodian maintains accounts to hold collateral for the Fund and its counterpar ties and,","page_number":115,"box":{"x":69,"y":876,"width":788,"height":11}},{"id":"0a1116fe-aac6-4352-9e62-9dc050f44951","block_type":"box","text":"therefore, the Fund may be subject to the credit risk of those custodians.","page_number":115,"box":{"x":68,"y":891,"width":522,"height":11}},{"id":"b4e0ab02-3c96-4bc5-9f03-b0436149c834","block_type":"box","text":"II-69","page_number":115,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"9189da92-adf4-4f2f-8fa1-2993107be05d","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":115,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"202f9e59-53fc-448e-9ea7-7889201d3504","block_type":"box","text":"Some repurchase agreements and purchase and sale contracts are structured to result in a fixed rate of return","page_number":116,"box":{"x":102,"y":45,"width":792,"height":11}},{"id":"57441438-a20a-40b0-ac90-2c1ee63d2624","block_type":"box","text":"insulated from market fluctuations during the term of the agreement, although such return may be affected by","page_number":116,"box":{"x":70,"y":60,"width":784,"height":11}},{"id":"c7bcf634-a965-41cc-afe9-52a325f37fd2","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":116,"box":{"x":69,"y":75,"width":837,"height":11}},{"id":"81128cd6-bf17-4ef7-94ee-f386574bbf8b","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":116,"box":{"x":69,"y":90,"width":812,"height":11}},{"id":"14d15a05-5161-48a4-9380-28b4c9ccc5de","block_type":"box","text":"fluctuations of the market values of the securities underlying the contract and the accrued interest on those","page_number":116,"box":{"x":68,"y":105,"width":770,"height":11}},{"id":"1008327d-eccf-4014-81f4-a021490c8b8d","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":116,"box":{"x":69,"y":120,"width":802,"height":12}},{"id":"fa887cde-0994-4084-8010-7945d1df1bab","block_type":"box","text":"losses arising from market fluctuations following the default.","page_number":116,"box":{"x":70,"y":135,"width":430,"height":12}},{"id":"2536174a-b815-475d-b2a0-8ace1db71cb7","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":116,"box":{"x":102,"y":158,"width":759,"height":11}},{"id":"d9c0adaa-b816-4765-83dc-d200f9acc47c","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":116,"box":{"x":70,"y":173,"width":765,"height":11}},{"id":"29ec089b-fe50-4542-8ac6-aeeca3d47750","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":116,"box":{"x":69,"y":188,"width":835,"height":12}},{"id":"aa82d652-b1c1-4e3f-b522-8ffdb383888e","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":116,"box":{"x":69,"y":203,"width":799,"height":11}},{"id":"f79324fb-f07b-41d7-9325-41b86726ac0d","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":116,"box":{"x":69,"y":218,"width":801,"height":12}},{"id":"71c5a36a-52e2-4593-a0e2-61d1a4ddf7f3","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":116,"box":{"x":69,"y":234,"width":826,"height":11}},{"id":"a8f4d43f-5738-416f-a46d-e861fcb6bb50","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":116,"box":{"x":70,"y":249,"width":831,"height":11}},{"id":"073c9b52-91fb-4cad-b0c0-395211883958","block_type":"box","text":"Securities subject to repurchase agreements (other than tri-par ty repurchase agreements) and purchase and sale","page_number":116,"box":{"x":69,"y":264,"width":810,"height":11}},{"id":"4af06349-e87e-4f7d-8029-abfb24173e7a","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":116,"box":{"x":69,"y":279,"width":829,"height":11}},{"id":"89a8d70a-182c-4e2a-8b90-aebd7c29aa1b","block_type":"box","text":"or by another authorized securities depository.","page_number":116,"box":{"x":69,"y":294,"width":329,"height":11}},{"id":"6f137810-9755-4c77-8862-696b3b6a7710","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":116,"box":{"x":102,"y":317,"width":770,"height":11}},{"id":"8f246729-48e1-4340-83dc-3ab01fbef651","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":116,"box":{"x":69,"y":332,"width":805,"height":11}},{"id":"de9b6951-8311-44da-8896-bb08d7a7692d","block_type":"box","text":"repurchase price. Therefore, the Fund may suffer time delays and incur costs or possible losses in connection with","page_number":116,"box":{"x":69,"y":347,"width":819,"height":11}},{"id":"a344a57b-1388-40f7-ac69-6cdd760e4618","block_type":"box","text":"disposition of the collateral. If the seller becomes insolvent and subject to liquidation or reorganization under","page_number":116,"box":{"x":69,"y":362,"width":778,"height":11}},{"id":"851c0a4f-b60a-4543-9648-62415c1e8bd5","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":116,"box":{"x":69,"y":377,"width":832,"height":12}},{"id":"6728e256-27ec-4d24-af15-6b75e3bf29e3","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":116,"box":{"x":70,"y":393,"width":810,"height":11}},{"id":"6b57eb0d-6eb3-4306-8e0b-3ff8ccfc2614","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":116,"box":{"x":69,"y":408,"width":812,"height":11}},{"id":"259b4bd5-7b06-4206-bc41-4a7a76214f4d","block_type":"box","text":"amount at least equal to the repurchase price, including accrued interest. If the seller fails to repurchase the","page_number":116,"box":{"x":69,"y":423,"width":778,"height":11}},{"id":"ab140042-a2eb-4259-bcc3-b0c9e56987c7","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":116,"box":{"x":69,"y":438,"width":817,"height":11}},{"id":"63535333-4682-4c86-922a-bec70b457dc9","block_type":"box","text":"the repurchase price.","page_number":116,"box":{"x":68,"y":453,"width":151,"height":11}},{"id":"cfa1d240-4bee-469f-a103-a902d4e7806e","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":116,"box":{"x":102,"y":475,"width":805,"height":12}},{"id":"7b08566d-5ad0-432e-ba91-a7cdf885e679","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":116,"box":{"x":70,"y":491,"width":837,"height":11}},{"id":"e18fb136-e83b-4136-a58c-3f9fe9b76f13","block_type":"box","text":"collateral may include instruments other than cash items and obligations issued by the U.S. Government or its","page_number":116,"box":{"x":69,"y":506,"width":788,"height":11}},{"id":"f37d1bcd-502b-46c4-95f2-747689910a46","block_type":"box","text":"agencies or instrumentalities, including securities that the Fund could not hold directly under its investment","page_number":116,"box":{"x":69,"y":521,"width":767,"height":11}},{"id":"b1bf654c-36bb-446a-a605-d872da0eb02c","block_type":"box","text":"strategies without the repurchase obligation.","page_number":116,"box":{"x":69,"y":536,"width":317,"height":11}},{"id":"2c7f9112-0716-49f9-b2c6-580e8f861b97","block_type":"box","text":"The type of collateral underlying repurchase agreements may also pose cer tain risks for a Fund. Lower quality","page_number":116,"box":{"x":101,"y":559,"width":782,"height":11}},{"id":"3348cd83-fa4b-41b1-b92a-2c9900bab22f","block_type":"box","text":"collateral and collateral with longer maturities may be subject to greater price fluctuations than higher quality","page_number":116,"box":{"x":69,"y":574,"width":776,"height":11}},{"id":"863ed43a-45f7-4ca3-84a9-5df29b5481ff","block_type":"box","text":"collateral and collateral with shor ter maturities. If the repurchase agreement counterpar ty were to default, lower","page_number":116,"box":{"x":69,"y":589,"width":799,"height":11}},{"id":"937bae33-681e-4710-b574-939ed2e1f343","block_type":"box","text":"quality collateral may be more difficult to liquidate than higher quality collateral. Should the counterpar ty default and","page_number":116,"box":{"x":69,"y":604,"width":829,"height":11}},{"id":"25a16a18-75c8-4cf2-ac48-7e525694eaa8","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":116,"box":{"x":68,"y":619,"width":825,"height":11}},{"id":"42bb5e6a-cbb2-4c57-ac2a-03ce03cc176a","block_type":"box","text":"status of an unsecured creditor of the counterpar ty (","page_number":116,"box":{"x":69,"y":634,"width":374,"height":11}},{"id":"47e16adc-601e-4d19-a40a-342d325d3978","block_type":"box","text":"i.e.","page_number":116,"box":{"x":445,"y":634,"width":20,"height":9}},{"id":"3e538560-57fd-4b3b-82df-c9e35ce4e30d","block_type":"box","text":", the position the Fund would normally be in if it were to hold,","page_number":116,"box":{"x":468,"y":634,"width":434,"height":11}},{"id":"ec0cfc6f-77b2-4da3-96ee-019fd1867519","block_type":"box","text":"pursuant to its investment policies, other unsecured debt securities of the defaulting counterpar ty) with respect to","page_number":116,"box":{"x":70,"y":649,"width":813,"height":12}},{"id":"f9590225-b435-4d3d-9cb0-4757482be4e7","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":116,"box":{"x":68,"y":664,"width":816,"height":12}},{"id":"79b942d6-0f9e-46d3-86cd-7578369629a8","block_type":"box","text":"and income involved in the transaction.","page_number":116,"box":{"x":69,"y":680,"width":278,"height":9}},{"id":"9b43e589-12f5-440f-93bc-656ed1a59b63","block_type":"box","text":"Regulations adopted by global prudential regulators require cer tain bank-regulated counterpar ties and cer tain of","page_number":116,"box":{"x":102,"y":702,"width":800,"height":12}},{"id":"ebfe3361-8a48-4ed6-b5e0-8ed162c20289","block_type":"box","text":"their affiliates to include in cer tain financial contracts, including many repurchase agreements and purchase and sale","page_number":116,"box":{"x":68,"y":717,"width":840,"height":12}},{"id":"a446fa88-4d2e-4a60-8dec-e9af35ffa048","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":116,"box":{"x":69,"y":732,"width":814,"height":12}},{"id":"f4de2775-87fc-4e73-ac79-3101a722af1e","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":116,"box":{"x":68,"y":748,"width":790,"height":11}},{"id":"42277b9c-b468-4b7b-b92e-dad543006629","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":116,"box":{"x":69,"y":763,"width":818,"height":11}},{"id":"b729f133-9362-43a9-881e-aa661b337a99","block_type":"box","text":"that these requirements, as well as potential additional government regulation and other developments in the","page_number":116,"box":{"x":68,"y":778,"width":783,"height":11}},{"id":"0c0f7e54-ed73-4e15-9923-04f001de979a","block_type":"box","text":"market, could adversely affect a Fund’s ability to terminate existing repurchase agreements and purchase and sale","page_number":116,"box":{"x":69,"y":793,"width":821,"height":11}},{"id":"e0b2fc1d-2dcd-4c32-88bd-6f2fef8f867f","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":116,"box":{"x":69,"y":808,"width":800,"height":11}},{"id":"4855c3d7-750e-4cef-b491-7d17d3d0f2fa","block_type":"box","text":"require cer tain transactions involving U.S. Treasuries, including repurchase agreements, to be centrally cleared.","page_number":116,"box":{"x":69,"y":823,"width":796,"height":12}},{"id":"fa9dfad8-2874-4ed1-8011-d11e83938277","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":116,"box":{"x":69,"y":838,"width":834,"height":12}},{"id":"42a874f3-53b1-4da9-afe6-7bfb2181738c","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":116,"box":{"x":68,"y":853,"width":824,"height":12}},{"id":"14556aac-a5a8-4323-b0ed-4bfcf74e3c66","block_type":"box","text":"adversely affect a Fund’s per formance.","page_number":116,"box":{"x":69,"y":869,"width":279,"height":11}},{"id":"52a3b106-d61c-4d92-b55d-96f98f81ad3b","block_type":"box","text":"Restricted Securities.","page_number":116,"box":{"x":102,"y":891,"width":157,"height":9}},{"id":"6a053bb0-924c-4ecb-a64b-d4748953676a","block_type":"box","text":"A Fund may invest in or hold securities that are not registered under the Securities Act","page_number":116,"box":{"x":265,"y":891,"width":617,"height":12}},{"id":"6c8dbb6c-5868-46eb-a5fb-163e977ed620","block_type":"box","text":"(“restricted securities”), which may include securities in private companies and Rule 144A Securities. Restricted","page_number":116,"box":{"x":69,"y":906,"width":801,"height":12}},{"id":"5d109d71-3609-49e9-8bd3-df3758c6463f","block_type":"box","text":"II-70","page_number":116,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d15c5f70-7e73-4a8a-ac6d-19cba55a0d2a","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":116,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e2b04b87-ddbe-4318-b250-9b3bfc12709a","block_type":"box","text":"securities may be sold in private placement transactions between issuers and their purchasers, including through","page_number":117,"box":{"x":69,"y":45,"width":808,"height":11}},{"id":"e16c5798-d332-4ccb-90bf-e2f7b052129d","block_type":"box","text":"private negotiated transactions between the issuer and their purchasers, such as the Funds, and may be neither","page_number":117,"box":{"x":70,"y":60,"width":802,"height":11}},{"id":"902e185e-93f0-4594-939a-9f7ff3d8a2dd","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":117,"box":{"x":70,"y":75,"width":834,"height":11}},{"id":"87f39291-5252-4d0a-8dd9-be25e3c9db9d","block_type":"box","text":"freely transferable under the laws of the applicable jurisdiction or due to contractual restrictions on resale. Some of","page_number":117,"box":{"x":68,"y":90,"width":825,"height":11}},{"id":"1f780d9a-c912-4679-818c-64feb398046a","block_type":"box","text":"these securities are new and complex, and trade only among institutions; the markets for these securities are still","page_number":117,"box":{"x":68,"y":105,"width":815,"height":11}},{"id":"aefb8d06-6c80-46e1-ad7d-3632010fb520","block_type":"box","text":"developing, and may not function as efficiently as established markets. Typically, investments in private companies","page_number":117,"box":{"x":69,"y":120,"width":821,"height":12}},{"id":"4e5a1e40-72e3-4c24-a892-2cfd4d9ffea0","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":117,"box":{"x":69,"y":136,"width":831,"height":11}},{"id":"72e7c229-50cc-4517-8d26-a701316cb483","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":117,"box":{"x":70,"y":150,"width":824,"height":12}},{"id":"95520545-f2ea-4220-a9cd-2b9085c3378d","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":117,"box":{"x":69,"y":166,"width":834,"height":11}},{"id":"a57b925e-2d6c-460d-a169-d770df80edee","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":117,"box":{"x":69,"y":181,"width":769,"height":11}},{"id":"846e66d5-b374-491e-865c-058dff5b77aa","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":117,"box":{"x":69,"y":196,"width":838,"height":11}},{"id":"d266b46f-7774-41c8-be15-3598f898aec6","block_type":"box","text":"value than publicly traded securities. To the extent that restricted securities may be resold in privately negotiated","page_number":117,"box":{"x":68,"y":211,"width":805,"height":11}},{"id":"ac56ef25-fd99-437f-9ffb-5df264426d8f","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":117,"box":{"x":68,"y":226,"width":840,"height":11}},{"id":"20d6d88e-e351-4b6b-ab34-a83b5b5b145c","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":117,"box":{"x":70,"y":241,"width":815,"height":11}},{"id":"4d7879af-365e-4998-98cd-fd8a3cbbc103","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":117,"box":{"x":69,"y":256,"width":835,"height":12}},{"id":"8e4a8490-f99f-4b6c-bb85-328e3cf24a8b","block_type":"box","text":"market conditions. In addition, issuers whose securities are not publicly traded or who are not otherwise publicly","page_number":117,"box":{"x":69,"y":272,"width":803,"height":11}},{"id":"98000101-1e8b-4a9f-892c-0edca09dcebc","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":117,"box":{"x":70,"y":286,"width":830,"height":12}},{"id":"b8b2f93d-31a4-48cf-b573-6d76cc99061f","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":117,"box":{"x":69,"y":302,"width":817,"height":11}},{"id":"908023f8-60fc-4dcc-88ae-725caac3f157","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":117,"box":{"x":68,"y":317,"width":825,"height":11}},{"id":"66ea9fd1-d16d-443f-8ffb-1a2313eb3728","block_type":"box","text":"of registration. Where registration is required for restricted securities, a considerable time period may elapse","page_number":117,"box":{"x":69,"y":332,"width":777,"height":11}},{"id":"6f0035cf-428c-4fee-8a00-e8d6737b81c6","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":117,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"dfc9b513-7200-4fe4-b2ef-d28c6a8c7dc2","block_type":"box","text":"an effective registration statement. If during such period, adverse market conditions were to develop, the Fund might","page_number":117,"box":{"x":69,"y":362,"width":834,"height":11}},{"id":"909e851d-e562-4f4f-be3b-57e49bd442b0","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":117,"box":{"x":69,"y":377,"width":828,"height":12}},{"id":"01890e07-a431-4492-914e-d0f552d1ca88","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":117,"box":{"x":69,"y":392,"width":836,"height":12}},{"id":"f08ee5ef-6901-482a-8f84-af5a263054a6","block_type":"box","text":"to purchasers of the restricted securities if the registration statement prepared by the issuer, or the corresponding","page_number":117,"box":{"x":68,"y":407,"width":819,"height":12}},{"id":"648657c9-d02f-4f1a-afd6-0c23005f2296","block_type":"box","text":"prospectus, is materially inaccurate or misleading. Transactions in restricted securities may entail other transaction","page_number":117,"box":{"x":70,"y":423,"width":822,"height":11}},{"id":"4c9725b5-24ef-43a3-a095-bdfa42ea9d0a","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":117,"box":{"x":69,"y":438,"width":798,"height":11}},{"id":"06156475-60cb-46fa-9f74-fa3f590740ec","block_type":"box","text":"private placements may consist of direct investments and may include investments in smaller, less seasoned","page_number":117,"box":{"x":70,"y":453,"width":780,"height":11}},{"id":"867dcfb1-fb87-4449-a5b8-f74067a971c5","block_type":"box","text":"issuers, which may involve greater risks. Issuers of restricted securities may not be subject to SEC repor ting","page_number":117,"box":{"x":70,"y":468,"width":773,"height":11}},{"id":"a436ca46-beb2-4846-9cf4-11bdab404aff","block_type":"box","text":"requirements, may not be required to maintain their accounting records in accordance with generally accepted","page_number":117,"box":{"x":69,"y":483,"width":784,"height":11}},{"id":"c46d98a3-3d08-4122-80dd-3c1971225d1b","block_type":"box","text":"accounting principles, and may not be required to maintain effective internal controls over financial repor ting. As a","page_number":117,"box":{"x":69,"y":498,"width":816,"height":11}},{"id":"948e65bd-6e83-4bcd-90eb-7d80859c4295","block_type":"box","text":"result, BlackRock may not have timely or accurate information about the business, financial condition and results of","page_number":117,"box":{"x":69,"y":513,"width":828,"height":11}},{"id":"5a59965b-60b3-4fad-9718-d8f72585b8bc","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":117,"box":{"x":69,"y":528,"width":831,"height":12}},{"id":"63286801-fb70-4320-bde3-1e7caa302495","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":117,"box":{"x":68,"y":543,"width":804,"height":12}},{"id":"2a7f8828-3136-4786-a64e-ef3bcb1a61ea","block_type":"box","text":"markets or financial resources, or they may be dependent on a limited management group.","page_number":117,"box":{"x":69,"y":559,"width":647,"height":11}},{"id":"661206a8-5567-4e57-8e4b-6cfb667ed69d","block_type":"box","text":"Cer tain restricted securities may represent limited investment oppor tunities and each shareholder’s","page_number":117,"box":{"x":102,"y":581,"width":714,"height":11}},{"id":"65fc02ff-0e94-4710-bbd4-7d2454f9fca1","block_type":"box","text":"propor tionate investment exposure to such limited investment oppor tunities may be reduced propor tionately as the","page_number":117,"box":{"x":70,"y":597,"width":823,"height":11}},{"id":"d82f2dc7-3853-4511-bf0d-95d3ec65fa33","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":117,"box":{"x":70,"y":612,"width":826,"height":11}},{"id":"edccb930-4163-4032-a725-b0793846f4d1","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":117,"box":{"x":70,"y":627,"width":830,"height":11}},{"id":"73cfce49-47d4-44f4-8082-4e4531e3caa4","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":117,"box":{"x":69,"y":642,"width":812,"height":11}},{"id":"9a09b862-1780-4153-b5ea-68dd7c11c1ff","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":117,"box":{"x":69,"y":657,"width":787,"height":11}},{"id":"80c505ba-eb05-4dea-ab13-7baf2ea13e95","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":117,"box":{"x":69,"y":672,"width":833,"height":11}},{"id":"e98a4c2c-8d3d-4815-a083-daf1789ce079","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":117,"box":{"x":69,"y":687,"width":759,"height":11}},{"id":"360111d9-d9be-4079-aa91-8c518eb897ef","block_type":"box","text":"investments, potentially indefinitely, and may adversely affect the value of the investments. In making investments in","page_number":117,"box":{"x":70,"y":702,"width":833,"height":12}},{"id":"0729f869-47f5-4d87-9937-5fe00987b7b3","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":117,"box":{"x":69,"y":717,"width":828,"height":12}},{"id":"8706843c-364a-47f9-b6be-217f895bb97f","block_type":"box","text":"conduct por tfolio transactions in such securities. The activity of identifying, completing, and realizing upon attractive","page_number":117,"box":{"x":69,"y":732,"width":827,"height":12}},{"id":"fb30e44b-60c8-49c5-b46b-c807ab7e68e8","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":117,"box":{"x":70,"y":748,"width":804,"height":11}},{"id":"ce490b3c-754c-41f6-be6e-ffb522935e5f","block_type":"box","text":"competing for investments against other similarly situated investors. It is possible that competition for appropriate","page_number":117,"box":{"x":69,"y":763,"width":816,"height":11}},{"id":"438f92b9-66ae-4b04-8e1c-99fb5a8f2e72","block_type":"box","text":"investment oppor tunities may increase, thus potentially reducing the number of investment oppor tunities available to","page_number":117,"box":{"x":70,"y":778,"width":835,"height":11}},{"id":"a35cf494-d455-4e47-92de-1932c3d9e891","block_type":"box","text":"a Fund and adversely affecting the terms upon which investments can be made. There is no assurance that","page_number":117,"box":{"x":69,"y":793,"width":768,"height":11}},{"id":"01446435-2495-45ae-85a1-478e2ed1ddf9","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":117,"box":{"x":70,"y":808,"width":815,"height":11}},{"id":"57a0b352-67e7-42a9-85b0-503c5b1cc91f","block_type":"box","text":"especially as that Fund grows in size.","page_number":117,"box":{"x":69,"y":823,"width":264,"height":12}},{"id":"b6c6ffe8-f1e6-46a1-aa3f-cace3502b1ba","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":117,"box":{"x":101,"y":846,"width":762,"height":11}},{"id":"216e9746-68d0-474b-91a8-f8e4c155dd4e","block_type":"box","text":"securities issued by private companies) and thus they may be considered “illiquid”. Each Fund values restricted","page_number":117,"box":{"x":69,"y":861,"width":795,"height":11}},{"id":"1cff1a7d-07e0-44f7-8baa-86379cf806f0","block_type":"box","text":"securities in accordance with BlackRock’s valuation policies and procedures, which are designed to value","page_number":117,"box":{"x":69,"y":876,"width":751,"height":11}},{"id":"f4be9ef1-858b-4ac7-99df-efa3ea20b387","block_type":"box","text":"investments such that they accurately reflect fair value. Due to the inherent uncer tainty and subjectivity of","page_number":117,"box":{"x":70,"y":891,"width":755,"height":11}},{"id":"a1e1d598-2643-4325-90a9-8ad6bc7d4e3f","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":117,"box":{"x":69,"y":906,"width":830,"height":12}},{"id":"9d1b5514-4d08-4aa0-8b60-a86c98689d58","block_type":"box","text":"II-71","page_number":117,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6ec21270-119b-4d5f-b04a-727751d8de4a","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":117,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5a7a2eb4-6195-42f8-ad36-692b590b790a","block_type":"box","text":"private investments may differ significantly from the values that would have been used had a readily available market","page_number":118,"box":{"x":70,"y":45,"width":835,"height":11}},{"id":"c496e976-3760-44d5-b9e1-c9ad7a7a9ae1","block_type":"box","text":"value existed for such investments and may differ materially from the amounts the Fund may realize on any","page_number":118,"box":{"x":68,"y":60,"width":766,"height":11}},{"id":"ebfc698f-bc3e-4530-8c2a-bdffa56c8370","block_type":"box","text":"dispositions of such investments. Differences in the value of the Fund’s private investments could result in the","page_number":118,"box":{"x":69,"y":75,"width":792,"height":11}},{"id":"12330b6c-58c1-4a22-85af-97f8d3213ebe","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":118,"box":{"x":70,"y":90,"width":821,"height":11}},{"id":"f5f5db14-014d-4a4e-b19a-fd3541fcc7d4","block_type":"box","text":"Fund’s por tfolio, potentially resulting in the dilution of shareholder interests and increasing oppor tunities for","page_number":118,"box":{"x":70,"y":105,"width":771,"height":11}},{"id":"2b07ce2b-63ed-4074-a986-cb43c52b35f2","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":118,"box":{"x":69,"y":120,"width":826,"height":12}},{"id":"04c3b5dc-eb80-44af-88b8-4c8683ca0a5e","block_type":"box","text":"by other investment companies and investors to price the same restricted securities. In addition, the impact of","page_number":118,"box":{"x":69,"y":135,"width":790,"height":11}},{"id":"c84062d8-ef7e-4965-bb22-2f8e41c98ddc","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":118,"box":{"x":69,"y":150,"width":828,"height":12}},{"id":"15174c38-d646-4c8b-9cfb-e2325e1be3d3","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":118,"box":{"x":69,"y":166,"width":810,"height":11}},{"id":"ab7f13f3-06b8-499c-bb7a-dbfd6eadd620","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":118,"box":{"x":70,"y":181,"width":818,"height":11}},{"id":"589c3b73-712b-48e5-adb0-b4b25584f48e","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":118,"box":{"x":68,"y":196,"width":839,"height":11}},{"id":"bacafb14-796a-4a6d-9c76-76c4aa42ebed","block_type":"box","text":"that the Fund ultimately realizes upon the disposal of such investments.","page_number":118,"box":{"x":68,"y":211,"width":514,"height":11}},{"id":"4fdcf92f-9b8e-4f00-bb8b-aa77c14524f0","block_type":"box","text":"See also risks discussed under “Illiquid Investments.”","page_number":118,"box":{"x":102,"y":234,"width":385,"height":11}},{"id":"f7caed12-2a51-4871-8c81-08b442dae4bb","block_type":"box","text":"Reverse Repurchase Agreements.","page_number":118,"box":{"x":102,"y":257,"width":246,"height":10}},{"id":"1c67d40f-de8e-4fd6-b7c3-74dbc517eeb9","block_type":"box","text":"A Fund may enter into reverse repurchase agreements with the same par ties","page_number":118,"box":{"x":354,"y":257,"width":548,"height":11}},{"id":"30f143fd-7744-4cdd-bfc3-82e7ba19faec","block_type":"box","text":"with whom it may enter into repurchase agreements. Under a reverse repurchase agreement, a Fund sells securities","page_number":118,"box":{"x":68,"y":272,"width":830,"height":11}},{"id":"ddbccf30-5878-47f5-91e4-1842958c5658","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":118,"box":{"x":68,"y":287,"width":793,"height":11}},{"id":"a796eff0-c076-48ec-a34c-80ef935b5708","block_type":"box","text":"repurchase agreement when it is anticipated that the interest income to be earned from the investment of the","page_number":118,"box":{"x":69,"y":302,"width":784,"height":11}},{"id":"85c24938-cfae-425b-a641-f5cfa2f86412","block_type":"box","text":"proceeds of the transaction is greater than the interest expense of the transaction.","page_number":118,"box":{"x":70,"y":317,"width":591,"height":11}},{"id":"9066f5aa-6fec-4bd1-ba9c-4195630401f9","block_type":"box","text":"The use of reverse repurchase agreements may be regarded as leveraging and, therefore, speculative.","page_number":118,"box":{"x":101,"y":339,"width":730,"height":12}},{"id":"2521f3ff-92b5-4208-a782-5b7aec9dd5e0","block_type":"box","text":"Fur thermore, reverse repurchase agreements involve the risks that (i) the interest income earned in the investment","page_number":118,"box":{"x":70,"y":355,"width":822,"height":11}},{"id":"237e58a7-978a-4abf-9d78-9862b69da576","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":118,"box":{"x":69,"y":370,"width":821,"height":11}},{"id":"4c5eb007-6470-41ff-9619-d628b7c7c4fa","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":118,"box":{"x":69,"y":385,"width":801,"height":11}},{"id":"8c7b1637-cd80-4a4a-a4f0-37746583aa97","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":118,"box":{"x":69,"y":400,"width":830,"height":11}},{"id":"e35fb638-011f-4d67-ac9d-2a55bce03170","block_type":"box","text":"(iv) the securities will not be returned to the Fund.","page_number":118,"box":{"x":69,"y":415,"width":354,"height":11}},{"id":"23595555-8d9c-4246-876d-81f9b017f6c1","block_type":"box","text":"In addition, if the buyer of securities under a reverse repurchase agreement files for bankruptcy or becomes","page_number":118,"box":{"x":102,"y":438,"width":769,"height":11}},{"id":"5fd25299-661a-4d08-815b-befe3d88a7e1","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":118,"box":{"x":70,"y":453,"width":815,"height":11}},{"id":"1f1b8703-1d9c-4584-9d78-f4b57f6901a1","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":118,"box":{"x":70,"y":468,"width":782,"height":11}},{"id":"ad6eb3bc-218f-4f41-ad1b-d4a5f35fa287","block_type":"box","text":"agreement may effectively be restricted pending such decision.","page_number":118,"box":{"x":69,"y":483,"width":449,"height":11}},{"id":"2bcd8989-41c6-4adc-b55a-da64cfe0b091","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into reverse repurchase agreements and","page_number":118,"box":{"x":102,"y":506,"width":794,"height":11}},{"id":"c98ded36-e989-4df8-a079-f88465c56eea","block_type":"box","text":"similar financing transactions (","page_number":118,"box":{"x":69,"y":521,"width":218,"height":11}},{"id":"cc7ff8dd-20f0-443f-84c4-9743d4df8e53","block_type":"box","text":"e.g.","page_number":118,"box":{"x":289,"y":522,"width":24,"height":10}},{"id":"728d94d9-89c3-4ef3-a0d2-0512fc10e094","block_type":"box","text":", recourse and non-recourse tender option bonds, borrowed bonds) notwithstanding","page_number":118,"box":{"x":316,"y":521,"width":594,"height":11}},{"id":"15f1751d-1b79-4a57-bb2e-4d6dbb816f5f","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":118,"box":{"x":68,"y":536,"width":813,"height":11}},{"id":"5074d546-22ad-4ac7-ac57-25ea981f71e4","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":118,"box":{"x":70,"y":551,"width":789,"height":11}},{"id":"ffdba296-3423-4a0e-8112-a4ab41241794","block_type":"box","text":"borrowings in the aggregate, or (ii) treats all such transactions as Derivatives Transactions under Rule 18f-4. See “—","page_number":118,"box":{"x":69,"y":566,"width":836,"height":11}},{"id":"cbb6db80-497e-4e42-9b6c-301144fdeaab","block_type":"box","text":"Derivatives — Regulation of Derivatives — Rule 18f-4 under the Investment Company Act” above. The SEC has also","page_number":118,"box":{"x":70,"y":581,"width":824,"height":12}},{"id":"f519992f-e602-4577-9b14-d0b041eccb27","block_type":"box","text":"finalized rules that will require cer tain transactions involving U.S. Treasuries, including reverse repurchase","page_number":118,"box":{"x":68,"y":596,"width":758,"height":12}},{"id":"af567a93-f25f-4d14-a54a-73d241b4ce1e","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":118,"box":{"x":69,"y":612,"width":822,"height":11}},{"id":"4fb66d24-0b31-4dbe-afb3-ea1584d0bda6","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":118,"box":{"x":68,"y":627,"width":838,"height":11}},{"id":"c0490250-ed58-4cbe-b7ac-4d6a3eed725f","block_type":"box","text":"costs of such transactions and may adversely affect a Fund’s per formance.","page_number":118,"box":{"x":69,"y":642,"width":538,"height":11}},{"id":"6676612f-3e63-42b7-926b-f5ba54315cb1","block_type":"box","text":"Additionally, regulations adopted by global prudential regulators require cer tain bank-regulated counterpar ties","page_number":118,"box":{"x":101,"y":665,"width":780,"height":11}},{"id":"0acdc032-67a6-4ad4-a5d6-54b832b03ecd","block_type":"box","text":"and cer tain of their affiliates to include in cer tain financial contracts, including many reverse repurchase agreements,","page_number":118,"box":{"x":69,"y":680,"width":838,"height":11}},{"id":"0b095969-dbdd-4bfd-a5b5-2e0892ff9f3f","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":118,"box":{"x":68,"y":695,"width":775,"height":11}},{"id":"a4ad638a-3b3a-4e7e-9678-68b529b11377","block_type":"box","text":"foreclosure action, exercise other default rights or restrict transfers of credit suppor t in the event that the","page_number":118,"box":{"x":68,"y":710,"width":754,"height":11}},{"id":"69bfe3f1-21b5-4ad0-a8d2-0a4e08263db0","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":118,"box":{"x":69,"y":725,"width":818,"height":11}},{"id":"77aac366-9f6a-441e-b2d8-2ac48c4ab979","block_type":"box","text":"that these requirements, as well as potential additional government regulation and other developments in the","page_number":118,"box":{"x":68,"y":740,"width":783,"height":11}},{"id":"07f7e40c-0115-4eb7-85a6-b851f82defcb","block_type":"box","text":"market, could adversely affect a Fund’s ability to terminate existing reverse repurchase agreements or to realize","page_number":118,"box":{"x":69,"y":755,"width":800,"height":11}},{"id":"0240cd0f-3b45-4bb3-a183-32e9c3948bb3","block_type":"box","text":"amounts to be received under such agreements.","page_number":118,"box":{"x":69,"y":771,"width":345,"height":11}},{"id":"2d942b79-ca37-46d7-81c3-2aa20682f386","block_type":"box","text":"Rights Offerings and Warrants to Purchase.","page_number":118,"box":{"x":102,"y":793,"width":316,"height":11}},{"id":"be464c8c-c433-45cf-8232-cce004e6ad60","block_type":"box","text":"Cer tain Funds may par ticipate in rights offerings and may purchase","page_number":118,"box":{"x":424,"y":793,"width":481,"height":11}},{"id":"d8707947-cbf3-4fe0-91e8-c5feabded279","block_type":"box","text":"warrants, which are privileges issued by corporations enabling the owners to subscribe to and purchase a specified","page_number":118,"box":{"x":68,"y":808,"width":822,"height":11}},{"id":"bd29e058-51db-4d7c-99c3-420bdb2adfb8","block_type":"box","text":"number of shares of the corporation at a specified price during a specified period of time. Subscription rights","page_number":118,"box":{"x":69,"y":823,"width":776,"height":12}},{"id":"847bd190-93da-49b5-a918-f7a226ed5316","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":118,"box":{"x":69,"y":838,"width":817,"height":12}},{"id":"66dd7848-b713-4ed8-9b65-47b4d32208c7","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":118,"box":{"x":70,"y":853,"width":833,"height":12}},{"id":"85e7e774-2246-421a-815a-fe267fb0cda5","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":118,"box":{"x":69,"y":869,"width":835,"height":11}},{"id":"188d5bd4-7d1a-49fa-852c-9bee035c3432","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":118,"box":{"x":70,"y":884,"width":821,"height":11}},{"id":"1c18c869-5a6d-4e58-97ba-4c120b0a72dc","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":118,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"7cb0c5c4-9c84-4efe-b24b-5f35d5490548","block_type":"box","text":"II-72","page_number":118,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e6c983cf-d2ef-4786-9cec-e897bb91f869","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":118,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d2e56b47-bf23-444a-919d-4387dd49af5f","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":119,"box":{"x":69,"y":45,"width":777,"height":11}},{"id":"9cfeb6c3-fd3e-493e-94f9-424d380d8e05","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":119,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"faf93520-33ab-4728-b4b0-f4ed8021176b","block_type":"box","text":"this reason investments in warrants may be more speculative than other equity-based investments.","page_number":119,"box":{"x":68,"y":75,"width":708,"height":11}},{"id":"dc58752a-6e74-4b93-bff0-d12a30f6a5ca","block_type":"box","text":"Rule 144A Securities.","page_number":119,"box":{"x":102,"y":98,"width":159,"height":9}},{"id":"d20c832c-9c2e-4aee-a167-7a433ab102e0","block_type":"box","text":"A Fund may purchase securities that can be offered and sold only to “qualified","page_number":119,"box":{"x":266,"y":98,"width":560,"height":11}},{"id":"4480d232-a9c8-4b6f-b156-ce6758ac2c8b","block_type":"box","text":"institutional buyers” pursuant to Rule 144A under the Securities Act. See “Restricted Securities” above.","page_number":119,"box":{"x":70,"y":113,"width":741,"height":11}},{"id":"faf9912d-af30-45da-8431-c9c462d64fac","block_type":"box","text":"Securities Lending.","page_number":119,"box":{"x":101,"y":135,"width":139,"height":11}},{"id":"0342a1e0-dca4-45c0-8051-dcac1d7a3608","block_type":"box","text":"Each Fund may lend por tfolio securities to cer tain borrowers that BlackRock determines to","page_number":119,"box":{"x":247,"y":135,"width":645,"height":11}},{"id":"1d5bdac5-a4c0-4614-9f08-f595d6e5c6cf","block_type":"box","text":"be creditwor thy, including borrowers affiliated with BlackRock. The borrowers provide collateral that is maintained in","page_number":119,"box":{"x":69,"y":150,"width":825,"height":12}},{"id":"8e55d799-3491-475e-8f00-8ae8e8aa28b9","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":119,"box":{"x":69,"y":166,"width":817,"height":11}},{"id":"0d8cf7e6-8d68-4199-a80e-419ded36a9c5","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":119,"box":{"x":69,"y":181,"width":831,"height":11}},{"id":"109d6c78-28f9-494f-bcd4-9d24c4534a2e","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":119,"box":{"x":68,"y":196,"width":827,"height":11}},{"id":"2a0dce69-8e6f-4651-98a6-9de1013eed68","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":119,"box":{"x":69,"y":211,"width":829,"height":11}},{"id":"51b2b08f-30e9-4105-a16f-b4f947f60902","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":119,"box":{"x":69,"y":226,"width":838,"height":11}},{"id":"28178f54-c6ef-455d-97df-d8bf60dc3bea","block_type":"box","text":"the securities were not on loan.","page_number":119,"box":{"x":68,"y":241,"width":225,"height":9}},{"id":"142a4f52-dd68-41ea-9c5f-979274c851c8","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":119,"box":{"x":101,"y":264,"width":799,"height":11}},{"id":"ae5f7c5f-16a1-4d17-8785-4952cc8bb56f","block_type":"box","text":"amount of cash collateral. The Funds are compensated by any positive difference between the amount earned on the","page_number":119,"box":{"x":69,"y":279,"width":835,"height":11}},{"id":"e092ef7b-92f6-49fc-9349-c4ab7b9535e8","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":119,"box":{"x":69,"y":294,"width":824,"height":11}},{"id":"654792d3-54fc-4986-89d2-c55d46ea4562","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":119,"box":{"x":69,"y":309,"width":821,"height":11}},{"id":"e96e1212-5e4a-4da0-abbd-a154fc10cf39","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":119,"box":{"x":69,"y":324,"width":810,"height":11}},{"id":"1ab7583f-1012-42d8-a669-fe56d0b2880e","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":119,"box":{"x":70,"y":339,"width":789,"height":12}},{"id":"df2341a5-ae5d-4fe0-9471-4185680455f8","block_type":"box","text":"including those affiliated with BlackRock; such investments are subject to investment risk.","page_number":119,"box":{"x":70,"y":355,"width":643,"height":11}},{"id":"a552b24f-211d-41b3-a490-f8def7cff3be","block_type":"box","text":"Securities lending involves exposure to cer tain risks, including operational risk (","page_number":119,"box":{"x":102,"y":377,"width":568,"height":12}},{"id":"218b8ada-e45c-41dc-b14b-1137f6e986e7","block_type":"box","text":"i.e.","page_number":119,"box":{"x":672,"y":377,"width":20,"height":9}},{"id":"bec84c5c-93e4-4439-ac89-0b201d2c7d17","block_type":"box","text":", the risk of losses resulting","page_number":119,"box":{"x":695,"y":377,"width":198,"height":12}},{"id":"b2d1297a-b066-4fc3-b92b-dbd90f32de6c","block_type":"box","text":"from problems in the settlement and accounting process), “gap” risk (","page_number":119,"box":{"x":68,"y":392,"width":501,"height":12}},{"id":"08f0bf4f-b8de-4e55-9e39-08c6894dfabb","block_type":"box","text":"i.e.","page_number":119,"box":{"x":571,"y":393,"width":20,"height":8}},{"id":"f8f01291-d8a6-4365-a92b-ca83cb5186aa","block_type":"box","text":", the risk of a mismatch between the return","page_number":119,"box":{"x":594,"y":392,"width":307,"height":11}},{"id":"c49c7052-9a67-438e-b4e7-2de75300d403","block_type":"box","text":"on cash collateral reinvestments and the fees each Fund has agreed to pay a borrower), foreign exchange risk (","page_number":119,"box":{"x":69,"y":407,"width":794,"height":12}},{"id":"b94198f8-d810-4072-b95b-0799954f443f","block_type":"box","text":"i.e.","page_number":119,"box":{"x":865,"y":408,"width":20,"height":8}},{"id":"9a8b442c-7222-4ea6-bb8b-078efb6622f2","block_type":"box","text":",","page_number":119,"box":{"x":888,"y":415,"width":2,"height":3}},{"id":"d236ff11-6882-43f9-b23a-cf3c554ceafa","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":119,"box":{"x":68,"y":423,"width":788,"height":11}},{"id":"c7f9aa59-1128-4547-8806-b85293856253","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":119,"box":{"x":69,"y":438,"width":837,"height":11}},{"id":"28ad9a1b-04ee-4a8f-a6e9-49256a35898f","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":119,"box":{"x":69,"y":453,"width":822,"height":11}},{"id":"418daf7a-fd54-43a0-9d7c-b3ece54e0fa2","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":119,"box":{"x":68,"y":468,"width":811,"height":11}},{"id":"0e84100a-d0ac-4153-b90c-bb4f7fd9a9b2","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":119,"box":{"x":70,"y":483,"width":820,"height":11}},{"id":"181089f4-3f92-4fb6-b98c-2d28e3014bc0","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":119,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"e319e9c3-f8b0-4a05-858a-51447be612d4","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":119,"box":{"x":70,"y":513,"width":820,"height":12}},{"id":"7a884fcb-05e2-4897-8810-3b9a08be55c7","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":119,"box":{"x":70,"y":528,"width":805,"height":12}},{"id":"242a553b-3246-4f2f-b1d2-2e0fe37e1c84","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":119,"box":{"x":69,"y":543,"width":816,"height":12}},{"id":"969284ec-0110-45b4-90d0-8e8a4c5fb324","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":119,"box":{"x":69,"y":559,"width":775,"height":11}},{"id":"320c3c66-ab41-40b1-90c2-01315a1d32e0","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":119,"box":{"x":69,"y":574,"width":821,"height":11}},{"id":"2bd4571b-fbfd-4485-b071-cd9a1029fb8c","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":119,"box":{"x":69,"y":589,"width":838,"height":11}},{"id":"4e6563e4-c277-40e3-b520-b589a47d191e","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":119,"box":{"x":70,"y":604,"width":837,"height":11}},{"id":"8e0662c7-d777-4f5a-b533-5dfaa184ecfb","block_type":"box","text":"in purchasing replacement securities. This latter event could trigger adverse tax consequences for a Fund. A Fund","page_number":119,"box":{"x":70,"y":619,"width":808,"height":11}},{"id":"f6bd57ca-8beb-4699-8435-c5a9773a15c3","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":119,"box":{"x":69,"y":634,"width":839,"height":11}},{"id":"3379341d-c635-4042-b4ff-6de25a666a00","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":119,"box":{"x":70,"y":650,"width":832,"height":11}},{"id":"0b1a7d92-a06f-43c5-996f-d10ac8b9aa1e","block_type":"box","text":"qualified dividend income, and distributions by the Fund of such substitute payments will not constitute qualified","page_number":119,"box":{"x":69,"y":664,"width":801,"height":12}},{"id":"37ded927-d90e-49f8-a950-39045c49b401","block_type":"box","text":"dividend income. Additionally, substitute payments received by a Fund representing qualified REIT dividends paid on","page_number":119,"box":{"x":69,"y":680,"width":823,"height":11}},{"id":"9697b067-e17a-4c93-8c50-2887e8bf5043","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":119,"box":{"x":70,"y":695,"width":823,"height":11}},{"id":"13e17207-fa5b-4ac7-a223-3eb0ed48c3d4","block_type":"box","text":"of such substitute payments will not be eligible for a 20% deduction currently available for ordinary REIT dividends","page_number":119,"box":{"x":69,"y":710,"width":812,"height":11}},{"id":"e52b1413-77aa-4c23-b150-787c235c2849","block_type":"box","text":"paid to non-corporate shareholders provided cer tain other requirements are satisfied. The securities lending agent","page_number":119,"box":{"x":70,"y":725,"width":814,"height":11}},{"id":"3e1fa7d1-c268-45db-b39f-55d2f151ca1f","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":119,"box":{"x":68,"y":740,"width":787,"height":11}},{"id":"3ae69dd0-7855-43a3-a9c7-e4cc24aa50da","block_type":"box","text":"securities lending program. Substitute payments received on tax-exempt securities loaned out will not be tax-exempt","page_number":119,"box":{"x":69,"y":755,"width":828,"height":11}},{"id":"6f669edc-f52e-4721-918a-e2a175e8709b","block_type":"box","text":"income. There could also be changes in the status of issuers under applicable laws and regulations, including tax","page_number":119,"box":{"x":70,"y":770,"width":809,"height":12}},{"id":"8b57fb08-3eb6-48fb-ac32-acd744fb6393","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":119,"box":{"x":69,"y":785,"width":821,"height":12}},{"id":"d7fc6df3-3dac-49ec-bee7-3d69914f90aa","block_type":"box","text":"delay in the payment of dividend equivalent payments owed to a Fund (as permitted by applicable law).","page_number":119,"box":{"x":69,"y":801,"width":731,"height":11}},{"id":"6de35b80-febd-4d3c-905a-44b4eceed46e","block_type":"box","text":"Regulations adopted by global prudential regulators require cer tain bank-regulated counterpar ties and cer tain of","page_number":119,"box":{"x":102,"y":823,"width":800,"height":12}},{"id":"d2b68299-e8f6-40f6-a1d9-c9b29299a351","block_type":"box","text":"their affiliates to include in cer tain financial contracts, including many securities lending agreements, terms that","page_number":119,"box":{"x":68,"y":838,"width":802,"height":12}},{"id":"b81b5b3f-5e1b-4e69-a24b-c691bdbb28dc","block_type":"box","text":"delay or restrict the rights of counterpar ties, such as the Fund, to terminate such agreements, foreclose upon","page_number":119,"box":{"x":69,"y":853,"width":783,"height":12}},{"id":"adc11d38-7614-47ee-b887-dae79291968c","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":119,"box":{"x":69,"y":869,"width":839,"height":11}},{"id":"69cf0a03-5030-4746-9247-44889fb52d2b","block_type":"box","text":"its affiliates are subject to cer tain types of resolution or insolvency proceedings. It is possible that these","page_number":119,"box":{"x":70,"y":884,"width":747,"height":11}},{"id":"71e91769-aff2-43d1-98b3-abb13b4cab8a","block_type":"box","text":"requirements, as well as potential additional government regulation and other developments in the market, could","page_number":119,"box":{"x":69,"y":899,"width":806,"height":11}},{"id":"685bdb5d-5c76-46fe-af41-062d10e12565","block_type":"box","text":"II-73","page_number":119,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"eeef1d25-41ef-432c-977f-753d052fca95","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":119,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f12a794a-dd9c-496e-9443-9662aeb2cd72","block_type":"box","text":"adversely affect the Fund’s ability to terminate existing securities lending agreements or to realize amounts to be","page_number":120,"box":{"x":69,"y":45,"width":808,"height":11}},{"id":"98dcda04-8322-4c24-acf8-09d10e0eecf8","block_type":"box","text":"received under such agreements. Prudential regulation may also favor lenders that can provide additional protections,","page_number":120,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"f2628e42-74c1-4427-aa7d-f5dd20f767cb","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":120,"box":{"x":69,"y":75,"width":827,"height":11}},{"id":"4b600268-9230-4409-89e5-b3457905cd04","block_type":"box","text":"additional protections to borrowers, where permitted pursuant to a Fund’s investment policies and if BlackRock","page_number":120,"box":{"x":69,"y":90,"width":794,"height":11}},{"id":"cefb8616-8378-4073-a67f-2804291e9f6b","block_type":"box","text":"believes doing so is in the best interest of the Fund.","page_number":120,"box":{"x":69,"y":105,"width":371,"height":11}},{"id":"81edbd08-4678-448e-927e-ff0dd21912ba","block_type":"box","text":"The SEC has adopted a rule that will require repor ting and public disclosure of securities loan transaction","page_number":120,"box":{"x":101,"y":128,"width":753,"height":11}},{"id":"a8555330-8640-4484-a61f-0bea5779161d","block_type":"box","text":"information (not including par ty names); this may include, but is not limited to, information about securities loans","page_number":120,"box":{"x":70,"y":143,"width":808,"height":11}},{"id":"a55ee17f-3a83-4cdf-9cc5-920929e26dd3","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":120,"box":{"x":69,"y":158,"width":784,"height":11}},{"id":"17d8f5b2-db04-4d7d-9815-57ece252f2f6","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":120,"box":{"x":69,"y":173,"width":833,"height":11}},{"id":"a7b8d163-1caf-4e54-a824-4227f4b4c334","block_type":"box","text":"the current expected compliance date.","page_number":120,"box":{"x":68,"y":188,"width":273,"height":11}},{"id":"d015c871-8a91-4a5c-b11f-d3ec07776029","block_type":"box","text":"Short Sales.","page_number":120,"box":{"x":101,"y":211,"width":89,"height":9}},{"id":"e5aab9ff-d733-450d-9bf5-addbe9fffb7b","block_type":"box","text":"Cer tain Funds may make shor t sales of securities, either as a hedge against potential declines in","page_number":120,"box":{"x":196,"y":211,"width":696,"height":11}},{"id":"a2a15b94-af1d-40ff-b129-bb9b29457ca9","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":120,"box":{"x":68,"y":226,"width":821,"height":11}},{"id":"e5c2bdea-56a2-45e8-832e-8124f9e4d07e","block_type":"box","text":"Cer tain Funds have a fundamental investment restriction prohibiting shor t sales of securities unless they are","page_number":120,"box":{"x":69,"y":241,"width":778,"height":11}},{"id":"3c9e250f-28a8-48e8-a9ac-2e0d344703ac","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":120,"box":{"x":70,"y":256,"width":831,"height":12}},{"id":"af21b793-2db7-4c63-9c05-5acc01bc8ed6","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":120,"box":{"x":69,"y":272,"width":837,"height":11}},{"id":"a913e614-79b6-402a-a9d3-a17721f8664b","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":120,"box":{"x":68,"y":287,"width":828,"height":11}},{"id":"bfdd6d95-16f9-4af9-a132-8ad5f1334992","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":120,"box":{"x":70,"y":302,"width":829,"height":11}},{"id":"89398082-dbec-4478-8ddc-f9da4eb65dee","block_type":"box","text":"securities to the lender of the securities.","page_number":120,"box":{"x":69,"y":317,"width":289,"height":9}},{"id":"d3942077-15b5-4ee2-af8c-cfdcf43e2075","block_type":"box","text":"A Fund secures its obligation to replace the borrowed security by depositing collateral with the broker-dealer,","page_number":120,"box":{"x":101,"y":340,"width":772,"height":11}},{"id":"c9fe0f93-d5a3-4c72-bacf-940d76afd4fa","block_type":"box","text":"usually in cash, U.S. Government Securities or other liquid securities similar to those borrowed. With respect to","page_number":120,"box":{"x":69,"y":355,"width":795,"height":11}},{"id":"3f12cf0f-4e0c-4890-bb55-c709ce423261","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":120,"box":{"x":69,"y":370,"width":801,"height":11}},{"id":"551de8e2-bf2b-448b-bb43-73b417e08f15","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":120,"box":{"x":69,"y":385,"width":830,"height":11}},{"id":"91248aca-bd79-4a17-9d01-3f5d8e6dea2f","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":120,"box":{"x":69,"y":400,"width":839,"height":11}},{"id":"b11cda72-2eaa-445f-b807-b532a6c69089","block_type":"box","text":"borrowed the security, regarding payment received by the Fund on such security, a Fund may not receive any","page_number":120,"box":{"x":69,"y":415,"width":770,"height":11}},{"id":"997e0fab-6b54-4b8b-b43c-f40de81facfb","block_type":"box","text":"payments (including interest) on its collateral deposited with such broker-dealer.","page_number":120,"box":{"x":70,"y":430,"width":568,"height":11}},{"id":"be2e8cec-6ca9-4dbd-9c25-2adc14daeae1","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":120,"box":{"x":102,"y":453,"width":806,"height":11}},{"id":"d05264bb-1296-452c-917e-60d0d16ee314","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":120,"box":{"x":69,"y":468,"width":817,"height":11}},{"id":"7de36afc-2bd5-45a8-a7f7-1e4ddb491af1","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":120,"box":{"x":68,"y":483,"width":819,"height":11}},{"id":"339434e9-cf79-4990-a66f-d4c50a5394f4","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":120,"box":{"x":69,"y":498,"width":758,"height":11}},{"id":"9c351498-1376-40f4-ae54-d4f4ca4aeb89","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":120,"box":{"x":69,"y":513,"width":817,"height":12}},{"id":"2b4a36b2-ae93-4f67-8d70-570abbce5920","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":120,"box":{"x":69,"y":528,"width":800,"height":12}},{"id":"836eaf1a-4ada-4ad1-86c1-f3b8216e9ff9","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":120,"box":{"x":69,"y":544,"width":818,"height":11}},{"id":"f20447bc-80a3-49cb-b6c2-164a1af68a0b","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":120,"box":{"x":68,"y":559,"width":821,"height":11}},{"id":"fbd193cd-3cc7-4cf0-8760-bed79fbd26fc","block_type":"box","text":"security, less the price at which the security was sold and may, theoretically, be unlimited.","page_number":120,"box":{"x":69,"y":574,"width":640,"height":11}},{"id":"49ca35a7-1f44-439a-9c49-f82683809825","block_type":"box","text":"A Fund may also make shor t sales “against the box” without being subject to such limitations.","page_number":120,"box":{"x":101,"y":597,"width":673,"height":11}},{"id":"9d688fe6-d49d-4041-a9b1-4b04cf92c129","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":120,"box":{"x":101,"y":619,"width":721,"height":11}},{"id":"d1090691-725f-4056-b2c3-228408a2157f","block_type":"box","text":"borrowings, which are considered Derivatives Transactions under the Rule. See “—Derivatives — Regulation of","page_number":120,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"f23a6a68-4301-4df4-bfc9-4ece1e030b8b","block_type":"box","text":"Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":120,"box":{"x":70,"y":649,"width":489,"height":12}},{"id":"29627b3e-87d4-4d9e-b196-9513a5e49ec8","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":120,"box":{"x":102,"y":672,"width":745,"height":11}},{"id":"1461a90c-3a67-457f-bf28-330a473df0c7","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":120,"box":{"x":69,"y":687,"width":793,"height":11}},{"id":"2b440a98-0d7b-4117-b850-bea174f188f2","block_type":"box","text":"authorities in other jurisdictions were to adopt additional restrictions regarding shor t sales, they could restrict a","page_number":120,"box":{"x":69,"y":703,"width":796,"height":11}},{"id":"1199db0b-6bb2-4c77-a7b9-c757683dbdf6","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":120,"box":{"x":70,"y":718,"width":766,"height":11}},{"id":"258ab189-a002-4665-bfa1-90113da93569","block_type":"box","text":"investment strategy as a result. In response to market events, the SEC and regulatory authorities in other","page_number":120,"box":{"x":70,"y":733,"width":754,"height":11}},{"id":"e1a1e81a-1dcf-442d-9b22-d0060cd233d5","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":120,"box":{"x":67,"y":748,"width":800,"height":11}},{"id":"549b1e67-7443-4ce3-9117-d5c74e2f2cfe","block_type":"box","text":"securities or on derivatives and other hedging instruments used to achieve a similar economic effect. Such bans or","page_number":120,"box":{"x":69,"y":763,"width":823,"height":11}},{"id":"537c8199-0195-4096-b6a2-592786ef07ca","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":120,"box":{"x":69,"y":778,"width":782,"height":11}},{"id":"4ab1e57f-f630-42ef-82b8-ea4cf8dcbc53","block_type":"box","text":"material adverse effect on the Fund’s ability to generate returns.","page_number":120,"box":{"x":69,"y":793,"width":460,"height":11}},{"id":"2a085d9e-aecd-4d1e-8b70-105fdf3f732c","block_type":"box","text":"Special Purpose Acquisition Companies.","page_number":120,"box":{"x":101,"y":816,"width":293,"height":11}},{"id":"e708d919-194b-4aee-9417-b3228f7e6ac8","block_type":"box","text":"A Fund may invest in stock, warrants, rights and other interests issued","page_number":120,"box":{"x":400,"y":816,"width":504,"height":11}},{"id":"9381bfb2-adb4-443c-9002-8ce0d202ddcc","block_type":"box","text":"by special purpose acquisition companies (“SPACs”) or similar special purpose entities that pool funds to seek","page_number":120,"box":{"x":69,"y":831,"width":791,"height":11}},{"id":"3405b3bf-71bd-4c92-97d4-e7a5dd801818","block_type":"box","text":"potential acquisition oppor tunities, including the “founder’s” shares and warrants described below. A SPAC is a","page_number":120,"box":{"x":70,"y":846,"width":793,"height":11}},{"id":"5aa7e422-d854-4680-a9c5-cfb868e31612","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":120,"box":{"x":70,"y":861,"width":824,"height":11}},{"id":"4c59fa67-05f4-4358-b23c-7883c6b46039","block_type":"box","text":"more operating businesses or assets. In connection with forming a SPAC, the SPAC’s sponsors acquire “founder’s”","page_number":120,"box":{"x":69,"y":876,"width":821,"height":11}},{"id":"61a7189a-5154-4806-a484-67be242b1f87","block_type":"box","text":"shares, generally for nominal consideration, and warrants that will result in the sponsors owning a specified","page_number":120,"box":{"x":69,"y":891,"width":768,"height":12}},{"id":"3f85a181-af8d-45b9-bc9a-c39bf7e4cc2b","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":120,"box":{"x":70,"y":906,"width":826,"height":12}},{"id":"4bcd65c5-edaf-469a-b686-cbf738420112","block_type":"box","text":"II-74","page_number":120,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b537d466-0080-4443-8ef2-57b27a4f3303","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":120,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"83d0ac23-dd5a-4477-98be-c2d634a0bd6e","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":121,"box":{"x":69,"y":45,"width":809,"height":11}},{"id":"2889fdcf-74fa-4b19-afb8-7c6dd2c5bdb2","block_type":"box","text":"Unless and until an acquisition is completed, a SPAC generally invests its assets in U.S. Government securities,","page_number":121,"box":{"x":70,"y":60,"width":797,"height":11}},{"id":"ae879a33-3ee6-4521-bd3f-dcf5b0d32aa0","block_type":"box","text":"money market securities and cash. If an acquisition that meets the requirements for the SPAC is not completed","page_number":121,"box":{"x":69,"y":75,"width":795,"height":11}},{"id":"c1afd492-a2c2-43c0-873b-e91ad887feeb","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":121,"box":{"x":68,"y":90,"width":788,"height":11}},{"id":"f0f91523-c5c6-4004-b8d1-afd21ea95043","block_type":"box","text":"warrants expire, and the “founder’s” shares and such warrants become wor thless. Because SPACs and similar","page_number":121,"box":{"x":68,"y":105,"width":794,"height":11}},{"id":"e85451cb-875d-47b8-9c5b-b10ea0428fa8","block_type":"box","text":"entities are in essence “blank check” companies without operating histories or ongoing business operations (other","page_number":121,"box":{"x":69,"y":120,"width":820,"height":12}},{"id":"32e0a6ca-87a0-4743-93aa-cf919665c029","block_type":"box","text":"than identifying and pursuing acquisitions), the potential for the long-term capital appreciation of their securities is","page_number":121,"box":{"x":68,"y":135,"width":815,"height":12}},{"id":"bf15b7e3-1022-46f0-ab46-4f89be50b8bb","block_type":"box","text":"par ticularly dependent on the ability of the SPAC’s management to identify and complete a profitable acquisition.","page_number":121,"box":{"x":70,"y":150,"width":802,"height":12}},{"id":"89503360-9429-4171-9990-2fb9cf44f4d3","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":121,"box":{"x":68,"y":166,"width":812,"height":11}},{"id":"526e3392-b8da-4f78-b026-6547773775b6","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":121,"box":{"x":69,"y":181,"width":838,"height":11}},{"id":"f26ac41e-b4d8-4521-873f-dd3c688da064","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":121,"box":{"x":69,"y":196,"width":806,"height":11}},{"id":"70d62fa2-b312-4860-97be-4ee7445b65bc","block_type":"box","text":"acquisition. In addition, some of these securities may be considered illiquid and/or subject to restrictions on resale.","page_number":121,"box":{"x":69,"y":211,"width":828,"height":11}},{"id":"c71a1a1b-f596-4e7a-8e06-06b33dfe0ce0","block_type":"box","text":"Standby Commitment Agreements.","page_number":121,"box":{"x":101,"y":234,"width":255,"height":11}},{"id":"dcf7fa97-41cd-4ab6-a3e7-e30e23ea4916","block_type":"box","text":"Standby commitment agreements commit a Fund, for a stated period of","page_number":121,"box":{"x":362,"y":234,"width":511,"height":11}},{"id":"57eef249-e181-4db4-a526-762ece09e850","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":121,"box":{"x":68,"y":249,"width":834,"height":11}},{"id":"55b8cc8d-4125-4535-b67f-9f2c66559e8f","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":121,"box":{"x":68,"y":264,"width":834,"height":11}},{"id":"073a80f7-c889-4638-9c65-8158a308d3ef","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":121,"box":{"x":70,"y":279,"width":802,"height":11}},{"id":"ee36d244-d50b-44f7-be6e-e5e8a6150c19","block_type":"box","text":"agreements for the purpose of investing in the security underlying the commitment at a price that is considered","page_number":121,"box":{"x":69,"y":294,"width":793,"height":11}},{"id":"62c06c1f-8ad5-47d0-bd3e-24252df1ec89","block_type":"box","text":"advantageous to the Fund.","page_number":121,"box":{"x":69,"y":309,"width":188,"height":11}},{"id":"391a69fd-b035-43ae-9fdb-8f631df9ca9d","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":121,"box":{"x":101,"y":332,"width":800,"height":11}},{"id":"b43ee1fe-31b3-410d-bf1e-aa023793b3c8","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":121,"box":{"x":68,"y":347,"width":816,"height":11}},{"id":"f3ea3017-262a-45ee-9037-eb5b62bf0c05","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":121,"box":{"x":69,"y":362,"width":835,"height":11}},{"id":"0d87a9d3-8b48-4082-aded-2a2c032c7bb2","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":121,"box":{"x":69,"y":377,"width":828,"height":12}},{"id":"c2d4e703-c4a4-46ea-80eb-db34b20a6560","block_type":"box","text":"The purchase of a security pursuant to a standby commitment agreement and the related commitment fee will","page_number":121,"box":{"x":101,"y":400,"width":785,"height":11}},{"id":"044c6e1d-c2c6-4cd9-8dc8-f6b9391dea65","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":121,"box":{"x":69,"y":415,"width":837,"height":11}},{"id":"e20ccb73-a76a-4297-a112-bad7e9e4dcab","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":121,"box":{"x":68,"y":430,"width":815,"height":11}},{"id":"5d6b5cc7-114e-4cb6-a08a-b0b4f7aab9f8","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":121,"box":{"x":69,"y":445,"width":792,"height":11}},{"id":"5cf53274-8dab-4407-a3d8-3705e30c513d","block_type":"box","text":"income on the expiration date of the standby commitment.","page_number":121,"box":{"x":70,"y":460,"width":415,"height":12}},{"id":"36a2f53b-e7a3-4b88-8dba-e3be3664db89","block_type":"box","text":"Standby commitments will only be entered into with dealers, banks and broker-dealers which, in the Manager’s","page_number":121,"box":{"x":102,"y":483,"width":789,"height":11}},{"id":"769d724f-a6ab-49bd-bafa-685cb5b1b4be","block_type":"box","text":"or sub-adviser’s opinion, present minimal credit risks. A Fund will acquire standby commitments solely to facilitate","page_number":121,"box":{"x":69,"y":498,"width":814,"height":11}},{"id":"16aea6ec-ccb9-48f0-8579-e3d60d0a216d","block_type":"box","text":"por tfolio liquidity and not to exercise its rights thereunder for trading purposes. Standby commitments will be valued","page_number":121,"box":{"x":70,"y":513,"width":827,"height":12}},{"id":"49f84c75-bf29-4631-9513-6b44f32c0647","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":121,"box":{"x":69,"y":528,"width":815,"height":12}},{"id":"8197f133-3475-4138-b340-fa8b24ba76c4","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":121,"box":{"x":68,"y":543,"width":817,"height":12}},{"id":"b1d3d724-debf-4e81-b315-ee54fc742ef0","block_type":"box","text":"reflected as a realized gain or loss when the commitment is exercised or expires.","page_number":121,"box":{"x":69,"y":559,"width":578,"height":11}},{"id":"7bcca841-4d95-41a5-869d-2cb2d33e97eb","block_type":"box","text":"Stripped Securities.","page_number":121,"box":{"x":101,"y":581,"width":143,"height":11}},{"id":"c1c1c065-1e7a-4d0c-98fe-1f5a81ae4e7b","block_type":"box","text":"Stripped securities are created when the issuer separates the interest and principal","page_number":121,"box":{"x":251,"y":581,"width":596,"height":11}},{"id":"741d4898-cc67-4617-9783-8e298e4ba57b","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":121,"box":{"x":69,"y":596,"width":839,"height":12}},{"id":"6b5ed77e-0814-49b2-859d-3c20970e20da","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":121,"box":{"x":70,"y":612,"width":818,"height":11}},{"id":"463383f7-1e04-4290-8e19-753e37cb1c78","block_type":"box","text":"payments (the principal only or “PO” security). Some stripped securities may receive a combination of interest and","page_number":121,"box":{"x":70,"y":627,"width":813,"height":11}},{"id":"238aea22-9dba-4220-bf09-dff489e123c8","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":121,"box":{"x":70,"y":642,"width":777,"height":11}},{"id":"836b2da7-a081-45b6-b2ef-7abc183a3959","block_type":"box","text":"principal payments (including prepayments) on the related underlying assets, and principal payments may have a","page_number":121,"box":{"x":70,"y":657,"width":802,"height":11}},{"id":"efa49f9e-72ec-430c-b483-34d87d36d354","block_type":"box","text":"material effect on yield to maturity. If the underlying assets experience greater than anticipated prepayments of","page_number":121,"box":{"x":69,"y":672,"width":794,"height":11}},{"id":"0a220bc3-0985-4f22-9b38-76613dd3d36e","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":121,"box":{"x":70,"y":687,"width":837,"height":11}},{"id":"362d4b31-c6f1-46eb-b15d-46dae983dd8b","block_type":"box","text":"than anticipated prepayments of principal, the yield on POs could be adversely affected. Stripped securities may be","page_number":121,"box":{"x":68,"y":702,"width":823,"height":11}},{"id":"a1a50875-7625-4c96-91ce-3ad49cf08171","block_type":"box","text":"highly sensitive to changes in interest rates and rates of prepayment.","page_number":121,"box":{"x":69,"y":717,"width":494,"height":12}},{"id":"670f01c9-8ea5-4d9d-adf3-a07cff1a4f93","block_type":"box","text":"Structured Notes.","page_number":121,"box":{"x":101,"y":740,"width":130,"height":9}},{"id":"86488756-7c15-44f0-b28a-b95eccaf00b4","block_type":"box","text":"Structured notes and other related instruments purchased by a Fund are generally privately","page_number":121,"box":{"x":237,"y":740,"width":650,"height":11}},{"id":"4ed98df6-c314-404e-8f8c-c3b98f2e797c","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":121,"box":{"x":69,"y":755,"width":818,"height":11}},{"id":"12f6b52a-581e-4f90-add1-97ee229422f1","block_type":"box","text":"specific asset, benchmark asset, market or interest rate (“reference measure”). Issuers of structured notes generally","page_number":121,"box":{"x":69,"y":770,"width":839,"height":12}},{"id":"ccd08497-34b4-4985-a1f1-d893930350ea","block_type":"box","text":"include corporations and banks. The interest rate or the principal amount payable upon maturity or redemption may","page_number":121,"box":{"x":70,"y":786,"width":821,"height":11}},{"id":"b1f92009-7137-48e1-a11f-43ec306858e4","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":121,"box":{"x":70,"y":801,"width":839,"height":11}},{"id":"02624f36-9f6d-42ef-9699-115eb7ec862f","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":121,"box":{"x":69,"y":816,"width":801,"height":11}},{"id":"d40cc2d1-2aa8-4425-be55-251018745236","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":121,"box":{"x":70,"y":831,"width":813,"height":11}},{"id":"90da6844-f127-4535-807c-f885c0d9f301","block_type":"box","text":"vary widely, depending on a variety of factors, including the volatility of the reference measure.","page_number":121,"box":{"x":68,"y":846,"width":673,"height":11}},{"id":"e4a78d74-cebd-4047-b66b-13ed08b28a03","block_type":"box","text":"Structured notes may be positively or negatively indexed, so the appreciation of the reference measure may","page_number":121,"box":{"x":102,"y":869,"width":768,"height":11}},{"id":"deff1c2c-677f-4060-b6ce-3c8cb9d16438","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":121,"box":{"x":70,"y":884,"width":821,"height":11}},{"id":"ae374c7a-ae3f-41a3-845a-169710ef8ef6","block_type":"box","text":"II-75","page_number":121,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"3775633a-b46d-4b7a-9e5f-7a6366fe395f","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":121,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6f50be1a-daa8-4c70-ae51-c6c557f6bcb8","block_type":"box","text":"structured notes may be determined by applying a multiplier to the per formance or differential per formance of","page_number":122,"box":{"x":69,"y":45,"width":787,"height":11}},{"id":"af171b83-b10f-4838-9357-892307d59718","block_type":"box","text":"reference measures. Application of a multiplier involves leverage that will serve to magnify the potential for gain and","page_number":122,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"10876a05-ec60-45dc-99f3-5568fb47f9ef","block_type":"box","text":"the risk of loss.","page_number":122,"box":{"x":68,"y":75,"width":110,"height":9}},{"id":"48885810-0992-42d7-80c9-c0ec805714f1","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":122,"box":{"x":101,"y":98,"width":759,"height":11}},{"id":"ca46a6b1-b040-4de6-984b-2b24cc95fec1","block_type":"box","text":"Structured notes may also be more volatile, less liquid, and more difficult to price accurately than less complex","page_number":122,"box":{"x":69,"y":113,"width":795,"height":11}},{"id":"dbbc0076-96d2-44d8-920c-f3fa287b175c","block_type":"box","text":"securities and instruments or more traditional debt securities. The secondary market for structured notes could be","page_number":122,"box":{"x":69,"y":128,"width":819,"height":11}},{"id":"58937f6f-b2e8-4a50-874c-2211e27f0725","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":122,"box":{"x":70,"y":143,"width":821,"height":11}},{"id":"7f212a44-114d-430d-a31a-2be2b58476ee","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":122,"box":{"x":69,"y":158,"width":827,"height":11}},{"id":"b97574fd-fe22-4c36-aba5-5500436ad90a","block_type":"box","text":"losses and could make structured notes more difficult for the Fund to value accurately.","page_number":122,"box":{"x":70,"y":173,"width":618,"height":11}},{"id":"3c2dc21b-7685-47f6-93a2-abb3e5b9106c","block_type":"box","text":"Taxability Risk.","page_number":122,"box":{"x":103,"y":196,"width":109,"height":11}},{"id":"86d10a45-e519-4da3-b90b-09d65539b357","block_type":"box","text":"Cer tain of the Funds intend to minimize the payment of taxable income to shareholders by","page_number":122,"box":{"x":218,"y":196,"width":644,"height":11}},{"id":"60286565-36e6-4354-b59a-6ec1f63c6ef7","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":122,"box":{"x":70,"y":211,"width":817,"height":11}},{"id":"ee5ceea7-2a3e-4f00-8559-92ebdfdc3e07","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":122,"box":{"x":68,"y":226,"width":827,"height":11}},{"id":"cdd86c58-6933-48f3-9ce5-0e76edd90420","block_type":"box","text":"be excludable from gross income for U.S. federal income tax purposes. Such securities, however, may be determined","page_number":122,"box":{"x":69,"y":241,"width":835,"height":11}},{"id":"20bc23e3-c2d0-4d45-995f-b2799e389278","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":122,"box":{"x":68,"y":256,"width":809,"height":11}},{"id":"793aafea-1e2e-4ff0-80f2-2d302b770759","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":122,"box":{"x":69,"y":271,"width":832,"height":12}},{"id":"20ce48d3-0545-4e02-89e7-d420640c7c7b","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":122,"box":{"x":69,"y":286,"width":816,"height":12}},{"id":"46583e58-abb8-4afe-900b-0799aa87d46a","block_type":"box","text":"paid by the Fund as “exempt interest dividends” could be adversely affected, subjecting the Fund’s shareholders to","page_number":122,"box":{"x":70,"y":302,"width":822,"height":11}},{"id":"1f7b6af8-f8a2-490c-9f63-8850b3b8fc31","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":122,"box":{"x":70,"y":317,"width":818,"height":11}},{"id":"b2470ab5-c885-4491-a63a-a466db92f48e","block_type":"box","text":"Fund is subsequently determined to be taxable, the Fund will dispose of that security as soon as reasonably","page_number":122,"box":{"x":70,"y":332,"width":771,"height":11}},{"id":"a88b0fc9-ee2e-457d-ba5c-22c0e87aa04c","block_type":"box","text":"practicable. In addition, future laws, regulations, rulings or cour t decisions may cause interest on municipal","page_number":122,"box":{"x":70,"y":347,"width":765,"height":11}},{"id":"acfabdb2-33ae-456e-b171-d327717df88c","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":122,"box":{"x":69,"y":362,"width":834,"height":11}},{"id":"a6c4c0ef-a202-44bf-9afd-8c3632aa3990","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":122,"box":{"x":68,"y":377,"width":807,"height":11}},{"id":"6f7fd55d-64cd-4e0a-aee1-3043fbddc247","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":122,"box":{"x":70,"y":392,"width":830,"height":12}},{"id":"bc406573-e691-4566-a2c5-0f38e7f67e3e","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":122,"box":{"x":68,"y":407,"width":838,"height":12}},{"id":"6a74da62-3631-4869-915b-d71a7c8cbb98","block_type":"box","text":"the value of an investment in the Fund.","page_number":122,"box":{"x":68,"y":423,"width":278,"height":9}},{"id":"864a6cf7-6e67-42f5-ad4b-366725cc18cf","block_type":"box","text":"Temporary Defensive Measures.","page_number":122,"box":{"x":103,"y":445,"width":230,"height":11}},{"id":"6940f6dd-55f6-49b0-92c9-f7ec54410677","block_type":"box","text":"As a temporary defensive measure, including to respond to adverse market,","page_number":122,"box":{"x":339,"y":445,"width":542,"height":12}},{"id":"47a98011-08f9-4666-810f-76d00e561f4c","block_type":"box","text":"economic, political or other conditions, a Fund may depar t from its principal investment strategies and may invest","page_number":122,"box":{"x":69,"y":460,"width":811,"height":12}},{"id":"027367e7-c2a8-40ef-8a81-e242b5c62ef6","block_type":"box","text":"without limitation in cash, high quality money market instruments, or other shor t term investments. Cer tain Funds","page_number":122,"box":{"x":68,"y":476,"width":813,"height":11}},{"id":"42ecb352-72d9-4a4c-baac-56ee8ae06688","block_type":"box","text":"may also invest in cash and other such instruments pending investment or to meet anticipated redemption requests.","page_number":122,"box":{"x":69,"y":491,"width":833,"height":11}},{"id":"a98487b4-bba3-4e5f-afe5-5a14af40edfc","block_type":"box","text":"High quality money market instruments include U.S. Government obligations, U.S. Government agency obligations,","page_number":122,"box":{"x":70,"y":506,"width":813,"height":11}},{"id":"3b1c6f23-970c-4562-a2af-5a1636fbcd3e","block_type":"box","text":"dollar denominated obligations of foreign issuers, bank obligations, including U.S. subsidiaries and branches of","page_number":122,"box":{"x":69,"y":521,"width":795,"height":11}},{"id":"8958244b-fa1f-4b55-b9a6-745b71ae7e47","block_type":"box","text":"foreign banks, corporate obligations, commercial paper, repurchase agreements and obligations of supranational","page_number":122,"box":{"x":68,"y":536,"width":806,"height":11}},{"id":"2078f64a-b838-4153-a286-a4de3e961625","block_type":"box","text":"organizations. Generally, such obligations will mature within one year from the date of settlement but may mature","page_number":122,"box":{"x":69,"y":551,"width":808,"height":11}},{"id":"a11fc843-fb07-4109-a4c3-af24cde59a17","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":122,"box":{"x":68,"y":566,"width":820,"height":11}},{"id":"15781b89-9fb5-40dd-8792-87a1c80fab56","block_type":"box","text":"its investment objective.","page_number":122,"box":{"x":70,"y":582,"width":171,"height":10}},{"id":"45ec41dc-9c2c-428d-9e5c-7b176331191d","block_type":"box","text":"U.S. Government Obligations.","page_number":122,"box":{"x":102,"y":604,"width":213,"height":11}},{"id":"ecf68b94-db38-4b65-927f-8cabc1140092","block_type":"box","text":"A Fund may purchase obligations issued or guaranteed by the U.S. Government","page_number":122,"box":{"x":321,"y":604,"width":566,"height":11}},{"id":"0f25c8eb-266a-454c-b91e-3318d0849eb8","block_type":"box","text":"and U.S. Government agencies and instrumentalities. Obligations of cer tain agencies and instrumentalities of the","page_number":122,"box":{"x":69,"y":619,"width":810,"height":11}},{"id":"5159323e-8437-4833-8ddd-e668cd472472","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":122,"box":{"x":70,"y":634,"width":826,"height":12}},{"id":"d79231a1-2b21-4057-984c-4717ec040999","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":122,"box":{"x":68,"y":649,"width":779,"height":12}},{"id":"3782a989-a843-422f-aaf9-68a24a330703","block_type":"box","text":"instrumentality issuing the obligation. No assurance can be given that the U.S. Government will provide financial","page_number":122,"box":{"x":70,"y":664,"width":798,"height":12}},{"id":"54f28188-b694-4659-8e2c-326698cd2430","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":122,"box":{"x":69,"y":680,"width":822,"height":11}},{"id":"03b166c0-85d9-4014-8506-d91b15d8e396","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":122,"box":{"x":69,"y":695,"width":809,"height":11}},{"id":"d48cd6c6-3447-48d7-adc8-1c6ad867eec8","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":122,"box":{"x":69,"y":710,"width":805,"height":11}},{"id":"36c31405-9faa-448a-931a-67440878f954","block_type":"box","text":"other stripped securities, represent beneficial ownership interests in either future interest payments or the future","page_number":122,"box":{"x":69,"y":725,"width":807,"height":11}},{"id":"6227a7a7-a630-4205-821e-453eda180d33","block_type":"box","text":"principal payments on U.S. Government obligations. These instruments are issued at a discount to their “face value”","page_number":122,"box":{"x":70,"y":740,"width":832,"height":11}},{"id":"70fa5581-7309-4445-a7b5-4e6cb60567b7","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":122,"box":{"x":69,"y":755,"width":829,"height":11}},{"id":"bf5afedf-07dc-4e65-8f50-42fe926fa6be","block_type":"box","text":"debt securities because of the manner in which their principal and interest are returned to investors.","page_number":122,"box":{"x":69,"y":770,"width":716,"height":11}},{"id":"d5ac6050-2f22-40e0-85f8-d5cf1180b98e","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":122,"box":{"x":102,"y":793,"width":800,"height":11}},{"id":"40a2dac8-462d-4c30-99b3-64bd807bd61c","block_type":"box","text":"Treasury Notes and Treasury Bonds and the obligations of the Federal Housing Administration, Farmers Home","page_number":122,"box":{"x":68,"y":808,"width":785,"height":11}},{"id":"43f1e0b3-4a71-41ee-a459-3d505d77ee49","block_type":"box","text":"Administration, Expor t-Impor t Bank of the United States, Small Business Administration, Ginnie Mae, Fannie Mae,","page_number":122,"box":{"x":68,"y":823,"width":813,"height":11}},{"id":"c9a868cf-e691-4276-9534-62455cf0aad0","block_type":"box","text":"Federal Financing Bank, General Services Administration, Student Loan Marketing Association, Central Bank for","page_number":122,"box":{"x":70,"y":838,"width":794,"height":12}},{"id":"bd24a0d6-790e-4110-bf85-a9e8813553e1","block_type":"box","text":"Cooperatives, Federal Home Loan Banks, Freddie Mac, Federal Intermediate Credit Banks, Federal Land Banks, Farm","page_number":122,"box":{"x":69,"y":854,"width":835,"height":10}},{"id":"0b91d7c2-6512-46d4-85fe-ceb85f588c28","block_type":"box","text":"Credit Banks System, Maritime Administration, Tennessee Valley Authority and Washington D.C. Armory Board. The","page_number":122,"box":{"x":69,"y":869,"width":818,"height":11}},{"id":"1cec8d83-811a-4c3d-8e15-0ab920a2d4a6","block_type":"box","text":"Funds may also invest in mor tgage-related securities issued or guaranteed by U.S. Government agencies and","page_number":122,"box":{"x":70,"y":884,"width":777,"height":11}},{"id":"dfa9284d-06fa-4df9-a28c-593d9f5bc08b","block_type":"box","text":"instrumentalities, including such instruments as obligations of Ginnie Mae, Fannie Mae and Freddie Mac.","page_number":122,"box":{"x":70,"y":899,"width":749,"height":11}},{"id":"97513e94-dc15-4aef-a776-9ed94dce1bf1","block_type":"box","text":"II-76","page_number":122,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"df341e68-a8cd-4d46-bba5-bf6f2951f69a","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":122,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"94ec5c9d-eb37-4d12-ada7-97f800d21f08","block_type":"box","text":"U.S. Treasury Obligations.","page_number":123,"box":{"x":103,"y":45,"width":183,"height":11}},{"id":"1d32122d-3949-4372-8d98-0d15c713f400","block_type":"box","text":"Treasury obligations may differ in their interest rates, maturities, times of issuance","page_number":123,"box":{"x":292,"y":45,"width":593,"height":11}},{"id":"c9fcd97f-475e-4c0c-81ff-565c8b819df4","block_type":"box","text":"and other characteristics. Obligations of U.S. Government agencies and authorities are suppor ted by varying degrees","page_number":123,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"f2938b7d-bfc2-44f3-96d6-ef1f25abb2d6","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":123,"box":{"x":69,"y":75,"width":827,"height":11}},{"id":"31a429f9-160f-4d77-92dd-a042b91914ad","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":123,"box":{"x":68,"y":90,"width":823,"height":11}},{"id":"d7617b07-b19d-426d-a30d-4662a520284c","block_type":"box","text":"do so.","page_number":123,"box":{"x":69,"y":105,"width":42,"height":9}},{"id":"243ae47f-2fbd-4995-b8cb-50a7acf1a8b9","block_type":"box","text":"U.S. Treasury Rolls","page_number":123,"box":{"x":102,"y":128,"width":139,"height":11}},{"id":"c6f2cf12-71ab-4cd0-9c67-fe4dcc8c3278","block_type":"box","text":".","page_number":123,"box":{"x":241,"y":135,"width":3,"height":2}},{"id":"9d771eba-ad39-458f-a969-a7612ef9bbf7","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":123,"box":{"x":250,"y":128,"width":656,"height":11}},{"id":"72768480-565d-4a72-a469-707eab9fada2","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":123,"box":{"x":69,"y":143,"width":804,"height":11}},{"id":"7155aaa4-e643-463a-9b0e-f0f4516c892f","block_type":"box","text":"agreed upon price and future settlement date. U.S. Treasury roll transactions may incrementally adjust the average","page_number":123,"box":{"x":69,"y":158,"width":820,"height":11}},{"id":"e0b1137d-f0ac-4104-a99a-1d4441f1e73d","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":123,"box":{"x":69,"y":173,"width":840,"height":11}},{"id":"cee52faa-ee27-4f84-829d-e0ad7b9e3e77","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":123,"box":{"x":69,"y":188,"width":828,"height":12}},{"id":"3036d963-abe5-4b2f-b194-1615b42b3db7","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":123,"box":{"x":69,"y":204,"width":775,"height":11}},{"id":"502bc2c0-4306-48d5-8799-f067e49eb4a9","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":123,"box":{"x":69,"y":218,"width":829,"height":12}},{"id":"b8c8067a-6e8d-4e0e-b9cb-883149244527","block_type":"box","text":"to the U.S. Treasury roll transaction failed to per form its obligations on the settlement date.","page_number":123,"box":{"x":68,"y":234,"width":657,"height":11}},{"id":"6c4cfe0a-5574-486e-af36-93f46bbec162","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":123,"box":{"x":101,"y":256,"width":756,"height":12}},{"id":"de142ac6-409a-4b24-8989-3672ae841bde","block_type":"box","text":"purchase price of those securities. U.S. Treasury rolls are speculative techniques that can be deemed to involve","page_number":123,"box":{"x":70,"y":271,"width":800,"height":12}},{"id":"c509fcd8-2b2f-4b41-b8f8-f0bb84c00c70","block_type":"box","text":"leverage. There is no assurance that U.S. Treasury rolls can be successfully employed.","page_number":123,"box":{"x":70,"y":286,"width":617,"height":12}},{"id":"88183418-682f-4c2f-9533-24f313cb24cb","block_type":"box","text":"Utility Industries.","page_number":123,"box":{"x":102,"y":309,"width":124,"height":11}},{"id":"2049a65f-54f6-4820-9e03-da792039b487","block_type":"box","text":"Risks that are intrinsic to the utility industries include difficulty in obtaining an adequate return","page_number":123,"box":{"x":233,"y":309,"width":674,"height":11}},{"id":"6160b1d5-1f83-4f87-8834-77dbeaffcbea","block_type":"box","text":"on invested capital, difficulty in financing large construction programs during an inflationary period, restrictions on","page_number":123,"box":{"x":69,"y":324,"width":812,"height":12}},{"id":"6a23356c-8756-495b-8f3f-d4923f9ca6aa","block_type":"box","text":"operations and increased cost and delays attributable to environmental considerations and regulation, difficulty in","page_number":123,"box":{"x":69,"y":339,"width":812,"height":12}},{"id":"38025378-7f9c-4630-9c37-8022e9e21c56","block_type":"box","text":"raising capital in adequate amounts on reasonable terms in periods of high inflation and unsettled capital markets,","page_number":123,"box":{"x":69,"y":355,"width":821,"height":11}},{"id":"d23e8fd1-5332-44da-9a01-2b02bded025f","block_type":"box","text":"technological innovations that may render existing plants, equipment or products obsolete, the potential impact of","page_number":123,"box":{"x":68,"y":370,"width":815,"height":11}},{"id":"8f94d08a-63fe-4285-83fa-aff8ae3fa2d5","block_type":"box","text":"natural or man-made disasters, increased costs and reduced availability of cer tain types of fuel, occasional reduced","page_number":123,"box":{"x":69,"y":385,"width":827,"height":11}},{"id":"e9c9c641-0641-46a8-8b2e-fde1bcb25315","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":123,"box":{"x":69,"y":400,"width":795,"height":11}},{"id":"61e0700b-dc87-4c37-bc1a-99d48ea520f0","block_type":"box","text":"energy policy and lengthy delays and greatly increased costs and other problems associated with the design,","page_number":123,"box":{"x":69,"y":415,"width":774,"height":11}},{"id":"10facd89-1586-46e5-8d42-7a977fe8200b","block_type":"box","text":"construction, licensing, regulation and operation of nuclear facilities for electric generation, including, among other","page_number":123,"box":{"x":69,"y":430,"width":817,"height":11}},{"id":"6d8a02ab-d09e-483f-85b3-6c093002e52d","block_type":"box","text":"considerations, the problems associated with the use of radioactive materials and the disposal of radioactive wastes.","page_number":123,"box":{"x":69,"y":445,"width":839,"height":11}},{"id":"4aa94b35-b988-4f5b-8f24-b77f4696aaf9","block_type":"box","text":"There are substantial differences among the regulatory practices and policies of various jurisdictions, and any given","page_number":123,"box":{"x":68,"y":460,"width":827,"height":12}},{"id":"dad9f559-e33f-46f0-bbc8-9f6c13b000fb","block_type":"box","text":"regulatory agency may make major shifts in policy from time to time. There is no assurance that regulatory","page_number":123,"box":{"x":69,"y":475,"width":761,"height":12}},{"id":"3940e73e-bbb0-4c17-98dc-be78461406e6","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":123,"box":{"x":69,"y":491,"width":821,"height":11}},{"id":"9f67a214-332f-416f-9c82-adb555cfa1cd","block_type":"box","text":"dividends on common stocks issued by a utility company. Additionally, existing and possible future regulatory","page_number":123,"box":{"x":69,"y":506,"width":777,"height":11}},{"id":"a4883060-0d4f-4ca2-b9ee-3a39916ff36f","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":123,"box":{"x":70,"y":521,"width":820,"height":11}},{"id":"ee95ba58-71ed-45de-afb9-032583080c3a","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":123,"box":{"x":69,"y":536,"width":835,"height":11}},{"id":"e144d13b-3273-4c9f-a64b-e98344f87661","block_type":"box","text":"to time review existing policies and impose additional requirements governing the licensing, construction and","page_number":123,"box":{"x":68,"y":551,"width":778,"height":11}},{"id":"cb1ce8df-fdf0-4c1c-8540-72e587be7853","block_type":"box","text":"operation of nuclear power plants. Prolonged changes in climatic conditions can also have a significant impact on","page_number":123,"box":{"x":69,"y":566,"width":808,"height":11}},{"id":"c9a7c90f-b262-4398-97c7-4a955082e2e5","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":123,"box":{"x":69,"y":581,"width":831,"height":12}},{"id":"857a70fe-c281-41fc-baf3-4823ae027d3d","block_type":"box","text":"utility.","page_number":123,"box":{"x":69,"y":597,"width":39,"height":11}},{"id":"74b0279f-6522-4673-afca-cdee1ed73fcd","block_type":"box","text":"Companies in the utilities sector may be adversely affected by changes in exchange rates, domestic and","page_number":123,"box":{"x":102,"y":619,"width":744,"height":11}},{"id":"8aaa6c63-f09d-4634-ad01-852ca42284bb","block_type":"box","text":"international competition, and governmental limitations on rates charged to customers. The value of regulated utility","page_number":123,"box":{"x":70,"y":634,"width":828,"height":12}},{"id":"200b8696-0c5a-49df-813b-8d880a465893","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":123,"box":{"x":69,"y":649,"width":817,"height":12}},{"id":"3d74b5b6-5922-4bfb-bd56-392488caaa92","block_type":"box","text":"interest rates and therefore may lead to volatility in per formance.","page_number":123,"box":{"x":70,"y":664,"width":464,"height":12}},{"id":"b301c9f4-d370-4245-9dc3-3b302b994ab9","block_type":"box","text":"Utility companies in the United States and in foreign countries are generally subject to regulation. In the United","page_number":123,"box":{"x":102,"y":687,"width":789,"height":11}},{"id":"dca23aac-c051-4f19-8191-68d297a52e4d","block_type":"box","text":"States, most utility companies are regulated by state and/or federal authorities. Such regulation is intended to","page_number":123,"box":{"x":69,"y":702,"width":790,"height":12}},{"id":"ad49ff87-05be-45c0-9224-579647b226d2","block_type":"box","text":"ensure appropriate standards of service and adequate capacity to meet public demand. Generally, prices are also","page_number":123,"box":{"x":69,"y":717,"width":811,"height":12}},{"id":"80d3a2da-c912-43b5-9614-d53efacd284b","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":123,"box":{"x":69,"y":732,"width":824,"height":12}},{"id":"48d26439-a83a-4f63-b0a9-6b0c2df1efae","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":123,"box":{"x":68,"y":748,"width":781,"height":11}},{"id":"1aeae3f9-10d6-4dc3-a37c-21d870a781f6","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":123,"box":{"x":69,"y":763,"width":826,"height":11}},{"id":"36d25b9b-cd75-4546-868f-9f4fbe667037","block_type":"box","text":"continue in the future.","page_number":123,"box":{"x":69,"y":778,"width":156,"height":9}},{"id":"be474125-0d39-4bdb-8d8a-1c0ced3b28f6","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":123,"box":{"x":101,"y":801,"width":763,"height":11}},{"id":"70a738f2-d57f-4d02-8e0e-4285f204b915","block_type":"box","text":"countries. In recent years, changes in regulation in the United States increasingly have allowed utility companies to","page_number":123,"box":{"x":69,"y":816,"width":820,"height":11}},{"id":"bbfff8a3-dc52-43bb-b47e-f82bad818de9","block_type":"box","text":"provide services and products outside their traditional geographic areas and lines of business, creating new areas of","page_number":123,"box":{"x":70,"y":831,"width":834,"height":11}},{"id":"3de4d56c-0546-428e-a2dc-2f437cae8a38","block_type":"box","text":"competition within the industries. In some instances, utility companies are operating on an unregulated basis.","page_number":123,"box":{"x":69,"y":846,"width":784,"height":11}},{"id":"83dbff53-e492-4537-b429-6020c3281bb2","block_type":"box","text":"Because of trends toward deregulation and the evolution of independent power producers as well as new entrants to","page_number":123,"box":{"x":70,"y":861,"width":830,"height":11}},{"id":"02b15674-d801-415d-9271-32cde0655f40","block_type":"box","text":"the field of telecommunications, non-regulated providers of utility services have become a significant par t of their","page_number":123,"box":{"x":68,"y":876,"width":809,"height":11}},{"id":"ada3f24d-3e9c-4950-a4b0-b294313f6e9e","block_type":"box","text":"respective industries. The Manager believes that the emergence of competition and deregulation will result in cer tain","page_number":123,"box":{"x":69,"y":891,"width":834,"height":12}},{"id":"f48ca581-9923-4444-937d-60ba653d2a5a","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":123,"box":{"x":69,"y":906,"width":825,"height":12}},{"id":"ddacf3d4-09c9-42a4-af0e-a4e370a2725b","block_type":"box","text":"II-77","page_number":123,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f152df01-628d-43f4-842c-3aa779e5283a","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":123,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4e321d3e-4ca8-4294-b187-c7ac04453c7f","block_type":"box","text":"to defend their core business from increased competition and may be less profitable. Reduced profitability, as well as","page_number":124,"box":{"x":68,"y":45,"width":840,"height":11}},{"id":"2400d41b-4d36-42f4-a0a7-30c601eb2c9b","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":124,"box":{"x":69,"y":60,"width":796,"height":11}},{"id":"b119d7f8-3524-4599-b5b9-7c7100ba42d2","block_type":"box","text":"rates. As deregulation allows utility companies to diversify outside of their original geographic regions and their","page_number":124,"box":{"x":69,"y":75,"width":790,"height":11}},{"id":"b7c1f18b-ce60-448b-8c07-24a98ec0b221","block_type":"box","text":"traditional lines of business, utility companies may engage in riskier ventures. Therefore, deregulation may eliminate","page_number":124,"box":{"x":68,"y":90,"width":831,"height":11}},{"id":"147ad614-6baa-4743-b4c3-710e7c4fb156","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":124,"box":{"x":69,"y":105,"width":812,"height":11}},{"id":"46680590-bb6f-447b-bbfc-5d2c1390dc7f","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":124,"box":{"x":68,"y":120,"width":833,"height":12}},{"id":"d2026572-edb0-4340-874f-44510367d7d3","block_type":"box","text":"these structural changes. Of course, there can be no assurance that favorable developments will occur in the future.","page_number":124,"box":{"x":68,"y":135,"width":831,"height":12}},{"id":"87e59244-a5b8-4bc4-9161-265c91d5f12c","block_type":"box","text":"Foreign utility companies are also subject to regulation, although such regulations may or may not be","page_number":124,"box":{"x":102,"y":158,"width":720,"height":11}},{"id":"3cb9bff2-6d3e-4ff6-9d7c-56f13377e73c","block_type":"box","text":"comparable to those in the United States. Foreign utility companies may be more heavily regulated by their respective","page_number":124,"box":{"x":69,"y":173,"width":838,"height":11}},{"id":"6c59ee64-ff1c-434f-8084-d5ebe34293cb","block_type":"box","text":"governments than utilities in the United States and, as in the United States, generally are required to seek","page_number":124,"box":{"x":68,"y":188,"width":762,"height":12}},{"id":"e519d78c-a3cf-4f29-93e8-27d3c08581ad","block_type":"box","text":"government approval for rate increases. In addition, many foreign utilities use fuels that may cause more pollution","page_number":124,"box":{"x":68,"y":203,"width":815,"height":12}},{"id":"3486db70-d3bd-4d23-a667-2eca6cb2bfaf","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":124,"box":{"x":68,"y":219,"width":801,"height":11}},{"id":"3ec9ab7f-7d1b-42bd-a8ff-49f545ffa14c","block_type":"box","text":"meet any proposed pollution restrictions. Foreign regulatory systems vary from country to country and may evolve in","page_number":124,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"0f418d46-ed4b-48a2-be4d-60c92e0fb58d","block_type":"box","text":"ways different from regulation in the United States.","page_number":124,"box":{"x":68,"y":249,"width":365,"height":11}},{"id":"69c89def-a933-47f2-8ed9-a54b90e76969","block_type":"box","text":"A Fund’s investment policies are designed to enable it to capitalize on evolving investment oppor tunities","page_number":124,"box":{"x":101,"y":272,"width":745,"height":11}},{"id":"5a7d306e-6e3b-41c9-b738-186cd5e591d9","block_type":"box","text":"throughout the world. For example, the rapid growth of cer tain foreign economies will necessitate expansion of","page_number":124,"box":{"x":68,"y":286,"width":790,"height":12}},{"id":"1d6382a5-9753-4ebb-91a2-decd36bda275","block_type":"box","text":"capacity in the utility industries in those countries. Although many foreign utility companies currently are government","page_number":124,"box":{"x":69,"y":302,"width":833,"height":11}},{"id":"48e3cbb2-8b7f-4fab-82ff-0b1bde85fdc8","block_type":"box","text":"owned, thereby limiting current investment oppor tunities for a Fund, the Manager believes that, in order to attract","page_number":124,"box":{"x":69,"y":317,"width":810,"height":11}},{"id":"8251c6db-7e67-4bc7-a890-aad2afb23919","block_type":"box","text":"significant capital for growth, foreign governments are likely to seek global investors through the privatization of their","page_number":124,"box":{"x":69,"y":332,"width":831,"height":11}},{"id":"b3a28e7b-47c2-431c-879d-779bc5b174f5","block_type":"box","text":"utility industries. Privatization, which refers to the trend toward investor ownership of assets rather than government","page_number":124,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"b15f05aa-41a6-4e18-991e-a33442f42c5a","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":124,"box":{"x":69,"y":362,"width":832,"height":11}},{"id":"421fac46-b589-4374-b412-2972c639cccd","block_type":"box","text":"assurance that such favorable developments will occur or that investment oppor tunities in foreign markets will","page_number":124,"box":{"x":69,"y":377,"width":786,"height":12}},{"id":"5392cad6-1483-43c3-aa89-dddc8cdfceae","block_type":"box","text":"increase.","page_number":124,"box":{"x":70,"y":393,"width":63,"height":8}},{"id":"6875ee2b-6959-4e99-9a79-e6c7175becfe","block_type":"box","text":"The revenues of domestic and foreign utility companies generally reflect the economic growth and development","page_number":124,"box":{"x":101,"y":415,"width":793,"height":11}},{"id":"af66e5b0-6faa-4462-adf2-ac929d5ecd0b","block_type":"box","text":"in the geographic areas in which they do business. The Manager will take into account anticipated economic growth","page_number":124,"box":{"x":70,"y":430,"width":821,"height":11}},{"id":"f0073fc7-74a6-4244-ab6d-eb81041f789a","block_type":"box","text":"rates and other economic developments when selecting securities of utility companies.","page_number":124,"box":{"x":69,"y":445,"width":619,"height":12}},{"id":"501bb537-d28e-4157-98ca-59431a0a854b","block_type":"box","text":"Electric.","page_number":124,"box":{"x":102,"y":468,"width":54,"height":9}},{"id":"b16b5d67-ab6c-4665-8821-88c7261c69f6","block_type":"box","text":"The electric utility industry consists of companies that are engaged principally in the generation,","page_number":124,"box":{"x":163,"y":468,"width":684,"height":11}},{"id":"f82bfeb1-bc14-4435-94dd-f41123ffe1d1","block_type":"box","text":"transmission and sale of electric energy, although many also provide other energy-related services. In the past,","page_number":124,"box":{"x":68,"y":483,"width":793,"height":11}},{"id":"a24f97dd-9c99-4a46-ba68-bd23cfeccdde","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":124,"box":{"x":69,"y":498,"width":814,"height":11}},{"id":"e788611b-2025-4315-909f-378cc45b2f81","block_type":"box","text":"near completion of major construction programs. In addition, many of these companies have generated cash flows in","page_number":124,"box":{"x":69,"y":513,"width":833,"height":12}},{"id":"e7e7c8bc-d463-4dbe-8595-8e2a3e481a98","block_type":"box","text":"excess of current operating expenses and construction expenditures, permitting some degree of diversification into","page_number":124,"box":{"x":69,"y":528,"width":821,"height":12}},{"id":"3950899e-b328-4943-ae52-3c20f601e4fe","block_type":"box","text":"unregulated businesses. Some electric utilities have also taken advantage of the right to sell power outside of their","page_number":124,"box":{"x":69,"y":543,"width":823,"height":12}},{"id":"9d91b743-c69d-440c-964f-0d90221e2870","block_type":"box","text":"traditional geographic areas. Electric utility companies have historically been subject to the risks associated with","page_number":124,"box":{"x":68,"y":559,"width":803,"height":11}},{"id":"940cbf6c-6503-4b52-b72a-a8dbd9c8025e","block_type":"box","text":"increases in fuel and other operating costs, high interest costs on borrowings needed for capital construction","page_number":124,"box":{"x":70,"y":574,"width":778,"height":11}},{"id":"fec2a271-a1c6-4dcb-9f3f-6598a3e726f4","block_type":"box","text":"programs, costs associated with compliance with environmental and safety regulations and changes in the regulatory","page_number":124,"box":{"x":70,"y":589,"width":836,"height":11}},{"id":"7684bb38-c2f8-427d-bda1-8541effa4b4d","block_type":"box","text":"climate. As interest rates declined, many utilities refinanced high cost debt and in doing so improved their fixed","page_number":124,"box":{"x":69,"y":604,"width":793,"height":11}},{"id":"26e7b1da-6e1c-4a8f-8ca0-085da7bd96cd","block_type":"box","text":"charges coverage. Regulators, however, lowered allowed rates of return as interest rates declined and thereby","page_number":124,"box":{"x":69,"y":619,"width":786,"height":11}},{"id":"addf4630-ef4f-41fd-8144-d17c1e0dc277","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":124,"box":{"x":69,"y":634,"width":819,"height":12}},{"id":"08414c3b-a369-4137-b1c5-1625f97305f0","block_type":"box","text":"rates, the allowed rates of return may not keep pace with the utilities’ increased costs. The construction and","page_number":124,"box":{"x":69,"y":649,"width":775,"height":12}},{"id":"39f1c5d4-64f6-482b-ae2a-845feba5a754","block_type":"box","text":"operation of nuclear power facilities are subject to strict scrutiny by, and evolving regulations of, the Nuclear","page_number":124,"box":{"x":69,"y":664,"width":770,"height":12}},{"id":"297f8406-2278-48ec-8237-bf9acc75ee14","block_type":"box","text":"Regulatory Commission and state agencies which have comparable jurisdiction. Strict scrutiny might result in higher","page_number":124,"box":{"x":70,"y":680,"width":826,"height":11}},{"id":"946ab66e-ec30-4426-af4a-d80657223c9b","block_type":"box","text":"operating costs and higher capital expenditures, with the risk that the regulators may disallow inclusion of these","page_number":124,"box":{"x":69,"y":695,"width":800,"height":11}},{"id":"d55e3d6f-889f-4aa4-908f-6d823772e539","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":124,"box":{"x":69,"y":710,"width":836,"height":11}},{"id":"75f1aa40-0dd1-4927-b2fc-8e70b0b6cade","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":124,"box":{"x":68,"y":725,"width":826,"height":11}},{"id":"e29445fa-a215-4d55-8079-3d04df40ec38","block_type":"box","text":"and for decommissioning such plants.","page_number":124,"box":{"x":69,"y":740,"width":270,"height":11}},{"id":"9e286352-9ebc-4404-872a-73f8bb275cf2","block_type":"box","text":"The rating agencies look closely at the business profile of utilities. Ratings for companies are expected to be","page_number":124,"box":{"x":101,"y":763,"width":776,"height":11}},{"id":"163dff71-796d-4161-9159-621638dce9be","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":124,"box":{"x":70,"y":778,"width":802,"height":11}},{"id":"836ede09-fc6b-40b0-984e-d390976a2c0a","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":124,"box":{"x":69,"y":793,"width":791,"height":11}},{"id":"36516a1a-b303-44f4-a4b2-ac03ccad91ee","block_type":"box","text":"competitive and the least regulated. On the other hand, companies that focus on transmission and distribution, which","page_number":124,"box":{"x":69,"y":808,"width":839,"height":11}},{"id":"1bb2c174-dfd2-459c-887c-ff031d5ad3a5","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":124,"box":{"x":70,"y":823,"width":838,"height":12}},{"id":"97e684f2-3d30-498f-bf35-087f89924bfb","block_type":"box","text":"greater predictability of cash flow.","page_number":124,"box":{"x":68,"y":838,"width":239,"height":12}},{"id":"eb10e862-b820-431d-9979-498346886c0e","block_type":"box","text":"A number of states are considering or have enacted deregulation proposals. The introduction of competition into","page_number":124,"box":{"x":101,"y":861,"width":801,"height":11}},{"id":"5ddd6d9d-7000-4164-8619-f0034e54b6a0","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":124,"box":{"x":68,"y":876,"width":821,"height":11}},{"id":"adc23664-f6be-43eb-95d9-5f538462fa0d","block_type":"box","text":"default risk, and lower electric utility security prices. Such increased competition may also cause long-term contracts,","page_number":124,"box":{"x":69,"y":891,"width":835,"height":12}},{"id":"41f70163-ebc0-4739-ae35-933eb8ba9906","block_type":"box","text":"which electric utilities previously entered into to buy power, to become “stranded assets” which have no economic","page_number":124,"box":{"x":68,"y":907,"width":815,"height":11}},{"id":"c25085ee-a37a-488d-a77c-7c024517d64a","block_type":"box","text":"II-78","page_number":124,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d504c755-51ea-4d66-8412-ea006c61549e","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":124,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ed013f4f-5c52-493b-b23c-ce83891f4d09","block_type":"box","text":"value. Any loss associated with such contracts must be absorbed by ratepayers and investors. In addition, some","page_number":125,"box":{"x":68,"y":45,"width":803,"height":11}},{"id":"3596d62b-e162-4e5d-9989-2084ce229eea","block_type":"box","text":"electric utilities have acquired electric utilities overseas to diversify, enhance earnings and gain experience in","page_number":125,"box":{"x":69,"y":60,"width":777,"height":11}},{"id":"6e87a6f8-f5c5-4a07-974d-98784ac6f97e","block_type":"box","text":"operating in a deregulated environment. In some instances, such acquisitions have involved significant borrowings,","page_number":125,"box":{"x":69,"y":75,"width":819,"height":11}},{"id":"e0f06519-a24c-4fb4-88e3-e18fef00bac7","block_type":"box","text":"which have burdened the acquirer’s balance sheet. There is no assurance that current deregulation proposals will be","page_number":125,"box":{"x":68,"y":90,"width":835,"height":11}},{"id":"5b92e86d-ccc5-4514-ab34-784c7d1ab5f5","block_type":"box","text":"adopted. However, deregulation in any form could significantly impact the electric utilities industry.","page_number":125,"box":{"x":69,"y":105,"width":700,"height":11}},{"id":"35429d9c-5b70-4e40-bbf1-67a7857d65db","block_type":"box","text":"Telecommunications.","page_number":125,"box":{"x":103,"y":128,"width":147,"height":9}},{"id":"a92715c2-619b-4956-8719-cc42a20cc2cf","block_type":"box","text":"The telecommunications industry today includes both traditional telephone companies, with","page_number":125,"box":{"x":256,"y":128,"width":652,"height":11}},{"id":"237f3273-421a-4370-ac1d-f6d0d1269653","block_type":"box","text":"a history of broad market coverage and highly regulated businesses, and cable companies, which began as small,","page_number":125,"box":{"x":69,"y":143,"width":813,"height":11}},{"id":"bdd31dfc-9174-492f-8aa5-9e7b4934c244","block_type":"box","text":"lightly regulated businesses focused on limited markets. Today these two historically different businesses are","page_number":125,"box":{"x":70,"y":158,"width":782,"height":11}},{"id":"be6d786e-d435-4e9b-9cc3-0421d1efd5cd","block_type":"box","text":"converging in an industry that is trending toward larger, competitive national and international markets with an","page_number":125,"box":{"x":69,"y":173,"width":786,"height":11}},{"id":"b02f0ab3-4529-4252-b1d5-bc5905d20a2f","block_type":"box","text":"emphasis on deregulation. Companies that distribute telephone services and provide access to the telephone","page_number":125,"box":{"x":69,"y":188,"width":784,"height":12}},{"id":"bd545052-4493-4da2-a734-1d88b357d2f1","block_type":"box","text":"networks still comprise the greatest por tion of this segment, but non-regulated activities such as wireless telephone","page_number":125,"box":{"x":69,"y":203,"width":830,"height":12}},{"id":"aadcdc85-b146-4f49-b828-b1f465cf9782","block_type":"box","text":"services, paging, data transmission and processing, equipment retailing, computer software and hardware and","page_number":125,"box":{"x":69,"y":218,"width":790,"height":12}},{"id":"cd9b02b5-4d8d-46e2-9411-1435c7f3276e","block_type":"box","text":"internet services are becoming increasingly significant components as well. In par ticular, wireless and internet","page_number":125,"box":{"x":70,"y":234,"width":788,"height":11}},{"id":"21b3963d-2142-4864-8936-5c9f71da8fd7","block_type":"box","text":"telephone services continue to gain market share at the expense of traditional telephone companies. The presence","page_number":125,"box":{"x":68,"y":249,"width":825,"height":11}},{"id":"6e7ac0ab-2502-4d17-852b-c61342a4c91d","block_type":"box","text":"of unregulated companies in this industry and the entry of traditional telephone companies into unregulated or less","page_number":125,"box":{"x":69,"y":264,"width":823,"height":11}},{"id":"3ffa650c-4605-4f84-b3cd-d5f5505c6f5d","block_type":"box","text":"regulated businesses provide significant investment oppor tunities with companies that may increase their earnings","page_number":125,"box":{"x":69,"y":279,"width":821,"height":11}},{"id":"66210402-7d51-4251-9b67-dc3766d8f60b","block_type":"box","text":"at faster rates than had been allowed in traditional regulated businesses. Still, increasing competition, technological","page_number":125,"box":{"x":69,"y":294,"width":830,"height":11}},{"id":"8d738d58-c5e7-4797-9834-d14a9578851e","block_type":"box","text":"innovations and other structural changes could adversely affect the profitability of such utilities and the growth rate","page_number":125,"box":{"x":70,"y":309,"width":821,"height":11}},{"id":"5446fa9c-0c9d-44ea-9803-3f2c90c9a58a","block_type":"box","text":"of their dividends. Given mergers and proposed legislation and enforcement changes, it is likely that both traditional","page_number":125,"box":{"x":69,"y":324,"width":827,"height":12}},{"id":"156cda99-abd8-42a4-8404-e7fc03634d09","block_type":"box","text":"telephone companies and cable companies will continue to provide an expanding range of utility services to both","page_number":125,"box":{"x":68,"y":339,"width":804,"height":12}},{"id":"e630a6b9-8ee4-419f-8a57-ccf027ead905","block_type":"box","text":"residential, corporate and governmental customers.","page_number":125,"box":{"x":69,"y":355,"width":367,"height":11}},{"id":"307aaf47-5f07-475a-b2d4-134fd7647ff4","block_type":"box","text":"Gas.","page_number":125,"box":{"x":102,"y":377,"width":31,"height":9}},{"id":"9ca11a7e-aa07-469c-b909-68257869b7d6","block_type":"box","text":"Gas transmission companies and gas distribution companies are undergoing significant changes. In the","page_number":125,"box":{"x":139,"y":377,"width":740,"height":12}},{"id":"5e4472c9-740d-4ae1-89be-61b0b4a1846b","block_type":"box","text":"United States, interstate transmission companies are regulated by the Federal Energy Regulatory Commission, which","page_number":125,"box":{"x":70,"y":392,"width":834,"height":12}},{"id":"97fca68c-df1f-4e0a-9ac1-6dc38a159226","block_type":"box","text":"is reducing its regulation of the industry. Many companies have diversified into oil and gas exploration and","page_number":125,"box":{"x":70,"y":407,"width":756,"height":12}},{"id":"a5ce805c-04b4-4c52-9d51-f354aed10ffd","block_type":"box","text":"development, making returns more sensitive to energy prices. In the recent decade, gas utility companies have been","page_number":125,"box":{"x":69,"y":423,"width":831,"height":11}},{"id":"be260dd8-8526-458b-afcf-6101effb4f10","block_type":"box","text":"adversely affected by disruptions in the oil industry and have also been affected by increased concentration and","page_number":125,"box":{"x":69,"y":438,"width":801,"height":11}},{"id":"5cc9fdc0-1d84-4bba-817e-148143d1d568","block_type":"box","text":"competition. In the opinion of the Manager, however, environmental considerations could improve the gas industry","page_number":125,"box":{"x":69,"y":453,"width":815,"height":11}},{"id":"ae7eaab6-495b-4d0b-9af1-8e7c5f8f5f01","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":125,"box":{"x":69,"y":468,"width":782,"height":11}},{"id":"34d42ab5-5a9f-4d59-a1ce-48b8ca22ccbf","block_type":"box","text":"incremental shifts in fuel consumption toward natural gas and away from oil and coal, even for electricity generation.","page_number":125,"box":{"x":70,"y":483,"width":829,"height":11}},{"id":"ff065d4c-a703-4ca2-b7f7-4a38374e24ea","block_type":"box","text":"However, technological or regulatory changes within the industry may delay or prevent this result.","page_number":125,"box":{"x":70,"y":498,"width":691,"height":11}},{"id":"b87355e7-1d6f-4c28-8b9b-aa6603823f2c","block_type":"box","text":"Water.","page_number":125,"box":{"x":103,"y":521,"width":42,"height":9}},{"id":"e0a40536-6753-4d98-858b-aa87bea350bb","block_type":"box","text":"Water supply utilities are companies that collect, purify, distribute and sell water. In the United States and","page_number":125,"box":{"x":151,"y":521,"width":754,"height":11}},{"id":"5337f1db-d177-45ff-a188-a56da3cac52a","block_type":"box","text":"around the world the industry is highly fragmented because most of the supplies are owned by local authorities.","page_number":125,"box":{"x":69,"y":536,"width":796,"height":11}},{"id":"193948bf-3d85-45c7-bfb4-0e8db1bbb138","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":125,"box":{"x":69,"y":551,"width":806,"height":11}},{"id":"6cbe7885-c38a-4c79-bbd0-999af554baf9","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":125,"box":{"x":69,"y":566,"width":814,"height":11}},{"id":"dc0a45f3-a2c3-4a58-a713-6535dd3f813a","block_type":"box","text":"and for foreign acquisition of domestic companies. The Manager believes that favorable investment oppor tunities","page_number":125,"box":{"x":69,"y":581,"width":808,"height":12}},{"id":"97ff2ae6-1d05-4cbb-a84d-4a27ace23d4d","block_type":"box","text":"may result from consolidation of this segment. As with other utilities, however, increased regulation, increased costs","page_number":125,"box":{"x":69,"y":596,"width":832,"height":12}},{"id":"bf3579d5-36ff-4ed7-b431-5d3995f4b735","block_type":"box","text":"and potential disruptions in supply may adversely affect investments in water supply utilities.","page_number":125,"box":{"x":69,"y":612,"width":662,"height":11}},{"id":"c1026688-5b3b-4390-bf1b-677a46ca47bd","block_type":"box","text":"Utility Industries Generally.","page_number":125,"box":{"x":103,"y":634,"width":186,"height":11}},{"id":"e5b45756-46b8-4101-ba86-23293e7b068d","block_type":"box","text":"There can be no assurance that the positive developments noted above, including","page_number":125,"box":{"x":296,"y":634,"width":584,"height":12}},{"id":"a11ebb68-bf30-465b-8dc6-4afd16025c49","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":125,"box":{"x":68,"y":649,"width":837,"height":12}},{"id":"f29adc6d-007c-4ce5-815b-52e553f5ddd2","block_type":"box","text":"not develop in the future.","page_number":125,"box":{"x":69,"y":664,"width":178,"height":11}},{"id":"dfb953e7-1f14-4586-9b7a-ec9cf5215663","block_type":"box","text":"When-Issued Securities, Delayed Delivery Securities and Forward Commitments.","page_number":125,"box":{"x":103,"y":687,"width":585,"height":11}},{"id":"d570bc72-8d3b-4634-8a0b-be26b10c4f66","block_type":"box","text":"A Fund may purchase or sell","page_number":125,"box":{"x":694,"y":687,"width":200,"height":11}},{"id":"e6ce97e9-42eb-4f62-aa00-4b73da4ed68f","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":125,"box":{"x":69,"y":703,"width":795,"height":10}},{"id":"bb9c0f5a-285e-4c41-8e1d-b506837a4344","block_type":"box","text":"delayed delivery basis or through a forward commitment (including on a TBA (to be announced) basis). These","page_number":125,"box":{"x":69,"y":717,"width":777,"height":12}},{"id":"d8348b4c-0685-4e31-a391-9269804f734e","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":125,"box":{"x":68,"y":732,"width":820,"height":12}},{"id":"4d198d5b-ebed-40ac-aee2-181314bce213","block_type":"box","text":"taking place in the future. The Fund enters into these transactions to obtain what is considered an advantageous","page_number":125,"box":{"x":68,"y":748,"width":807,"height":11}},{"id":"78b76933-5a12-4ec4-80cb-917bbf720be4","block_type":"box","text":"price to the Fund at the time of entering into the transaction.","page_number":125,"box":{"x":70,"y":763,"width":430,"height":11}},{"id":"d887624c-b412-4e10-8f1d-66d675c06e73","block_type":"box","text":"Pursuant to recommendations of the Treasury Market Practices Group, which is sponsored by the Federal","page_number":125,"box":{"x":102,"y":785,"width":750,"height":12}},{"id":"35fe8993-a8e6-4803-bb5b-2720f94bf6f1","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":125,"box":{"x":70,"y":801,"width":823,"height":11}},{"id":"0bb90490-65e7-4be8-8639-ab7d8b7eaa86","block_type":"box","text":"cer tain forward-settling transactions, including without limitation TBA transactions. FINRA rules have also been","page_number":125,"box":{"x":69,"y":816,"width":788,"height":11}},{"id":"2354a51d-a2bd-400f-a109-db3595545af5","block_type":"box","text":"implemented that include mandatory margin requirements for the TBA market with limited exceptions. The","page_number":125,"box":{"x":70,"y":831,"width":755,"height":11}},{"id":"8bd613e3-ca03-4c47-8c19-c0d4742043fd","block_type":"box","text":"collateralization of TBA trades is intended to mitigate counterpar ty credit risk between trade and settlement, but","page_number":125,"box":{"x":69,"y":846,"width":799,"height":11}},{"id":"804ec631-d3ea-47be-9c7e-e8599142d9e2","block_type":"box","text":"could increase the cost of TBA transactions and impose added operational complexity.","page_number":125,"box":{"x":69,"y":861,"width":614,"height":11}},{"id":"47bdabcc-7afa-44b4-aef2-3a354e52b78d","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":125,"box":{"x":101,"y":884,"width":780,"height":11}},{"id":"e4c90f21-ae09-431b-9d80-9101548d065c","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":125,"box":{"x":70,"y":899,"width":823,"height":11}},{"id":"3f31a303-65cc-4d8b-a4aa-0a21a7f41380","block_type":"box","text":"II-79","page_number":125,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"001a6ab3-9050-48b2-89af-c6de787e2fa5","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":125,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e62ececf-4cd8-4047-b2e0-9b3fe6e5e829","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":126,"box":{"x":69,"y":45,"width":838,"height":11}},{"id":"837f50aa-062f-42c9-a5a1-eb9d3da210a0","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":126,"box":{"x":68,"y":60,"width":839,"height":11}},{"id":"af03ffdc-0c43-4cc1-b61e-f795bbbad1cd","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":126,"box":{"x":70,"y":75,"width":824,"height":11}},{"id":"be8897a8-8ee5-436c-bb11-de618f0d716d","block_type":"box","text":"If deemed advisable as a matter of investment strategy, a Fund may dispose of or renegotiate a commitment","page_number":126,"box":{"x":102,"y":98,"width":776,"height":11}},{"id":"87bc1a73-f41e-40a1-8f4d-481370565950","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":126,"box":{"x":69,"y":113,"width":795,"height":11}},{"id":"b7aedc2d-a15d-401a-89d1-84b4f4b01d3d","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":126,"box":{"x":69,"y":128,"width":799,"height":11}},{"id":"16c78d4d-b59c-4363-a286-a3d47edcdab8","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":126,"box":{"x":101,"y":150,"width":784,"height":12}},{"id":"dddcc7dc-262e-45b0-8343-6212b1463e49","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":126,"box":{"x":69,"y":166,"width":772,"height":11}},{"id":"2245e71f-aea1-41fd-9925-07ab43a21e71","block_type":"box","text":"oppor tunity to obtain a price considered to be advantageous.","page_number":126,"box":{"x":69,"y":181,"width":434,"height":11}},{"id":"34967e61-0191-47a7-9a17-1f5753b7e10e","block_type":"box","text":"The market value of the securities underlying a commitment to purchase securities, and any subsequent","page_number":126,"box":{"x":101,"y":203,"width":745,"height":12}},{"id":"436f90aa-6156-4677-b162-60863e8c6e73","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":126,"box":{"x":68,"y":218,"width":831,"height":12}},{"id":"dac56210-7daa-4854-9da6-0e114148a22f","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":126,"box":{"x":69,"y":234,"width":823,"height":11}},{"id":"ffa63d84-f536-4854-8134-3e2832226f17","block_type":"box","text":"to purchase until they are paid for and delivered on the settlement date.","page_number":126,"box":{"x":68,"y":249,"width":514,"height":11}},{"id":"923ff7e6-44a0-45f4-a19b-2d398fc52dd0","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":126,"box":{"x":102,"y":271,"width":759,"height":12}},{"id":"604126a8-2b70-4f11-ae94-ce291a936e46","block_type":"box","text":"securities (","page_number":126,"box":{"x":69,"y":287,"width":78,"height":11}},{"id":"a3500379-4126-4b82-bfa2-6e031a7322d5","block_type":"box","text":"e.g.","page_number":126,"box":{"x":148,"y":288,"width":25,"height":10}},{"id":"feec745e-5a89-43cd-91c0-ed6eaddd8567","block_type":"box","text":", firm and standby commitments, including TBA commitments, and dollar rolls) and non-standard","page_number":126,"box":{"x":176,"y":286,"width":686,"height":12}},{"id":"fc5e17ad-a064-46d5-9953-cf2976a676d2","block_type":"box","text":"settlement cycle securities notwithstanding the limitation on the issuance of senior securities in Section 18 of the","page_number":126,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"0df7265f-c909-48e8-9c57-fe52ce9ec280","block_type":"box","text":"Investment Company Act, provided that the Fund intends to physically settle the transaction and the transaction will","page_number":126,"box":{"x":70,"y":317,"width":822,"height":11}},{"id":"0565b544-5b11-4095-8eab-6b1eb0911b1a","block_type":"box","text":"settle within 35 days of its trade date (the “Delayed-Settlement Securities Provision”). If a when-issued, forward","page_number":126,"box":{"x":69,"y":332,"width":802,"height":11}},{"id":"a965cf36-33d7-4fa4-87ea-ae9533e5b4ac","block_type":"box","text":"settling or non-standard settlement cycle security does not satisfy the Delayed-Settlement Securities Provision, then","page_number":126,"box":{"x":69,"y":347,"width":826,"height":11}},{"id":"908ec6d2-8b95-4b47-bea5-8e3fc603977c","block_type":"box","text":"it is treated as a Derivatives Transaction under Rule 18f-4. See “—Derivatives — Regulation of Derivatives — Rule","page_number":126,"box":{"x":70,"y":362,"width":816,"height":11}},{"id":"aa0b0644-3057-4aa5-b107-2fe97aa2cdbc","block_type":"box","text":"18f-4 under the Investment Company Act” above.","page_number":126,"box":{"x":70,"y":377,"width":349,"height":11}},{"id":"9c5afa42-a522-428f-ae0b-408cbf623351","block_type":"box","text":"Regulations adopted by global prudential regulators require cer tain bank-regulated counterpar ties and cer tain of","page_number":126,"box":{"x":102,"y":400,"width":800,"height":11}},{"id":"064bc5d6-1d98-4689-9aaf-bd83d65b0000","block_type":"box","text":"their affiliates to include in cer tain financial contracts, including many agreements with respect to when-issued, TBA","page_number":126,"box":{"x":68,"y":415,"width":829,"height":11}},{"id":"11b9f157-e069-4e79-897a-53530f45906c","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":126,"box":{"x":69,"y":430,"width":814,"height":11}},{"id":"2db0fedd-4fd2-41b7-a359-cba37a857d57","block_type":"box","text":"terminate such agreements, foreclose upon collateral, exercise other default rights or restrict transfers of credit","page_number":126,"box":{"x":68,"y":445,"width":799,"height":12}},{"id":"c0f8e108-8f2b-4c3c-851e-5fcc205e10a8","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":126,"box":{"x":69,"y":460,"width":836,"height":12}},{"id":"a21b6af4-6dc4-4c7b-95d0-8058f07c4be9","block_type":"box","text":"proceedings. It is possible that these requirements, as well as potential additional government regulation and other","page_number":126,"box":{"x":70,"y":476,"width":824,"height":11}},{"id":"3e04369f-2a0b-430f-b0bc-6aa29becf755","block_type":"box","text":"developments in the market, could adversely affect a Fund’s ability to terminate existing agreements with respect to","page_number":126,"box":{"x":69,"y":491,"width":829,"height":11}},{"id":"62fb418d-fd83-4ed8-936a-f7cdb482c33e","block_type":"box","text":"these transactions or to realize amounts to be received under such agreements.","page_number":126,"box":{"x":68,"y":506,"width":573,"height":11}},{"id":"ea924af8-40a9-4e31-aa4e-51399afab769","block_type":"box","text":"Yields and Ratings.","page_number":126,"box":{"x":103,"y":529,"width":139,"height":11}},{"id":"dbe36bab-dfd4-4079-820e-ea15f3d07578","block_type":"box","text":"The yields on cer tain obligations are dependent on a variety of factors, including general","page_number":126,"box":{"x":247,"y":528,"width":628,"height":12}},{"id":"f56dc1ce-5c0a-4217-b725-ad7651816c4f","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":126,"box":{"x":69,"y":543,"width":834,"height":12}},{"id":"d292eb53-9351-4b08-8bb1-3b3f95ee1f6e","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":126,"box":{"x":69,"y":559,"width":799,"height":11}},{"id":"99587b22-766e-4622-b601-d10ec785f4bb","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":126,"box":{"x":69,"y":574,"width":824,"height":11}},{"id":"e85d9638-223e-4bab-b9ca-a3dea5ed004d","block_type":"box","text":"general and are not absolute standards of quality. Consequently, obligations with the same rating, maturity and","page_number":126,"box":{"x":68,"y":589,"width":792,"height":11}},{"id":"f7d558f0-59fd-4281-b72b-5045012b472a","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":126,"box":{"x":70,"y":604,"width":827,"height":11}},{"id":"86819382-f883-49a7-9aca-952f4106164c","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":126,"box":{"x":69,"y":619,"width":786,"height":11}},{"id":"055bb302-7a85-4755-8652-9b8acdc6fe31","block_type":"box","text":"continue to hold the security.","page_number":126,"box":{"x":69,"y":634,"width":204,"height":11}},{"id":"0a15dcf8-9695-41ac-a733-1e12634aa1d7","block_type":"box","text":"Zero Coupon Securities.","page_number":126,"box":{"x":102,"y":657,"width":175,"height":11}},{"id":"665ed923-35ad-4b8f-985b-00842cc9c111","block_type":"box","text":"Zero coupon securities are securities that are sold at a discount to par value and do","page_number":126,"box":{"x":283,"y":657,"width":601,"height":11}},{"id":"2bb934ec-2a9e-4b39-9bca-53dce966d5df","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":126,"box":{"x":69,"y":672,"width":837,"height":11}},{"id":"ccfb9808-b7fa-4b0b-a9b1-f70de9cb1a5c","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":126,"box":{"x":69,"y":687,"width":822,"height":11}},{"id":"f91793c6-5cdb-4f6e-8a9c-2d313e58dc28","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":126,"box":{"x":68,"y":702,"width":814,"height":11}},{"id":"d1d10d70-49d3-465f-8927-b949c5aef3bf","block_type":"box","text":"security.","page_number":126,"box":{"x":69,"y":718,"width":57,"height":11}},{"id":"c936a663-2126-4a46-a180-e5740673abd1","block_type":"box","text":"While interest payments are not made on such securities, holders of such securities are deemed to have","page_number":126,"box":{"x":101,"y":740,"width":749,"height":11}},{"id":"5b0ed55c-9981-4ec5-ad25-597428d12fee","block_type":"box","text":"received income (“phantom income”) annually, notwithstanding that cash may not be received currently. The effect of","page_number":126,"box":{"x":69,"y":755,"width":835,"height":11}},{"id":"58931f0c-94bb-420e-a3d0-4a4056dd1899","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":126,"box":{"x":69,"y":770,"width":833,"height":12}},{"id":"2c33a102-27ab-4fc9-8b0e-21c347d2ec13","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":126,"box":{"x":70,"y":785,"width":836,"height":12}},{"id":"601b75ea-4948-4bf9-b61b-7e1a80e7c0bf","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":126,"box":{"x":69,"y":801,"width":804,"height":11}},{"id":"2775af0e-f239-4c60-9927-275d644169a4","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":126,"box":{"x":68,"y":816,"width":824,"height":11}},{"id":"d00aede8-e99d-4249-8fb5-aad2a2d1290a","block_type":"box","text":"future. For this reason, some of these securities may be subject to substantially greater price fluctuations during","page_number":126,"box":{"x":68,"y":831,"width":805,"height":11}},{"id":"32f2e196-b5bc-42b9-881c-8ddfb4b7734b","block_type":"box","text":"periods of changing market interest rates than are comparable securities that pay interest currently. Longer term zero","page_number":126,"box":{"x":70,"y":846,"width":837,"height":11}},{"id":"2db26380-4f67-4a2e-9af2-5eee3009075a","block_type":"box","text":"coupon bonds are more exposed to interest rate risk than shor ter term zero coupon bonds. These investments","page_number":126,"box":{"x":69,"y":861,"width":791,"height":11}},{"id":"15a1db7c-d4cc-453c-9d71-fc9c1a659dd9","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":126,"box":{"x":69,"y":876,"width":800,"height":11}},{"id":"e210b314-b7f9-4a85-9320-cfd04b0bd6d9","block_type":"box","text":"attract investors who are willing to defer receipt of cash.","page_number":126,"box":{"x":69,"y":891,"width":400,"height":12}},{"id":"626f136e-99f7-4055-a9c3-fc3218bdfeac","block_type":"box","text":"II-80","page_number":126,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"704b72b6-bc7d-4c9b-9016-202fa591795e","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":126,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d20d9934-b612-40a4-8f9d-8580e60b7ea8","block_type":"box","text":"A Fund accrues income with respect to these securities for U.S. federal income tax and accounting purposes","page_number":127,"box":{"x":101,"y":45,"width":775,"height":11}},{"id":"b3dfcc23-1d25-4ff2-b456-e61c358ad575","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":127,"box":{"x":70,"y":60,"width":827,"height":11}},{"id":"fcecc849-342a-4909-a8fc-a04ba90aa04b","block_type":"box","text":"liquidity in the event of adverse market conditions than comparably rated securities that pay cash interest at regular","page_number":127,"box":{"x":70,"y":75,"width":826,"height":11}},{"id":"1eadb825-75a0-4dec-a4da-bcd7e368a7a5","block_type":"box","text":"intervals.","page_number":127,"box":{"x":70,"y":90,"width":64,"height":9}},{"id":"27d4dc66-90f7-4a10-b18d-a5266f1b710a","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":127,"box":{"x":102,"y":113,"width":749,"height":11}},{"id":"121819d9-e955-4cb6-b269-ad1114f7bb2b","block_type":"box","text":"required to distribute income to its shareholders and, consequently, may have to dispose of other, more liquid","page_number":127,"box":{"x":69,"y":128,"width":784,"height":11}},{"id":"c162a2eb-5d64-4f05-9aa8-283e65bb44f8","block_type":"box","text":"por tfolio securities under disadvantageous circumstances or may have to leverage itself by borrowing in order to","page_number":127,"box":{"x":70,"y":143,"width":799,"height":11}},{"id":"106df8e1-ec45-4aa8-bd79-4491faf89f23","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":127,"box":{"x":68,"y":158,"width":799,"height":11}},{"id":"adf17d44-f5a3-4e2c-be3a-cafbc49dc03b","block_type":"box","text":"exposure to zero coupon securities.","page_number":127,"box":{"x":69,"y":173,"width":253,"height":11}},{"id":"6fded8c6-ad5e-4757-a413-e9c0bf92f931","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":127,"box":{"x":102,"y":196,"width":740,"height":11}},{"id":"b3c0a4ef-d802-4fa9-a3c8-b9d0ddbecf01","block_type":"box","text":"securities. During a period of severe market conditions, the market for such securities may become even less liquid.","page_number":127,"box":{"x":69,"y":211,"width":829,"height":11}},{"id":"ac581284-9541-4db1-87b4-bcefb4796dd5","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":127,"box":{"x":70,"y":226,"width":829,"height":11}},{"id":"d7e2328f-9fbb-4f56-a1b4-9868bd7cb368","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":127,"box":{"x":69,"y":241,"width":741,"height":11}},{"id":"d6316978-e09c-46f2-9ef6-e921da7c584e","block_type":"box","text":"Suitability. (All Funds)","page_number":127,"box":{"x":101,"y":264,"width":161,"height":11}},{"id":"7159506a-326d-4719-9b8d-4297c4ad83f0","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":127,"box":{"x":101,"y":286,"width":793,"height":12}},{"id":"9f7d7612-e253-4e9e-b425-171c1fe40ced","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":127,"box":{"x":68,"y":302,"width":811,"height":11}},{"id":"de03548b-8d4d-4732-ae26-d55ac0b1d215","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":127,"box":{"x":70,"y":317,"width":810,"height":11}},{"id":"1af82175-ceb4-4e18-aa34-dd18598cd2af","block_type":"box","text":"among other things, such investor’s investment objectives and such investor’s ability to accept the risks associated","page_number":127,"box":{"x":69,"y":332,"width":826,"height":11}},{"id":"3c6d9516-20f6-4a05-826b-afea0ad6962a","block_type":"box","text":"with investing in securities, including the risk of loss of principal.","page_number":127,"box":{"x":68,"y":347,"width":460,"height":11}},{"id":"cecf32ad-07db-49df-bb92-d96f834efcb3","block_type":"box","text":"Investment Restrictions. (All Funds)","page_number":127,"box":{"x":102,"y":370,"width":264,"height":11}},{"id":"bc04efec-cfaa-4bfb-a077-78ec0a73b8f7","block_type":"box","text":"See “Investment Restrictions” or “Investment Policies,” as applicable in each Fund’s SAI for the specific","page_number":127,"box":{"x":102,"y":392,"width":745,"height":11}},{"id":"c0878d79-340d-49be-83f9-90d347a3776b","block_type":"box","text":"fundamental and non-fundamental investment restrictions adopted by each Fund. In addition to those investment","page_number":127,"box":{"x":68,"y":407,"width":807,"height":12}},{"id":"30fafb97-e668-4da1-b72d-8373212f786a","block_type":"box","text":"restrictions, each Fund is also subject to the restrictions discussed below.","page_number":127,"box":{"x":69,"y":423,"width":528,"height":11}},{"id":"7723c144-a532-4b09-acfa-7ee89c1899cb","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":127,"box":{"x":102,"y":445,"width":735,"height":12}},{"id":"d0bfc982-8253-48e3-b848-1873d94d972f","block_type":"box","text":"company” for purposes of the Code. See “Dividends and Taxes — Taxes” or “Taxes.” To qualify, among other","page_number":127,"box":{"x":69,"y":460,"width":775,"height":12}},{"id":"4caebf86-a405-4c03-91f3-b4444216fe94","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":127,"box":{"x":69,"y":475,"width":837,"height":12}},{"id":"df147578-40ef-45ea-a67f-11353f39d27b","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":127,"box":{"x":69,"y":491,"width":799,"height":11}},{"id":"d9950db6-56df-42ad-85d6-66205b66dd2a","block_type":"box","text":"companies, U.S. Government Securities and other securities, with such other securities limited, in respect of any one","page_number":127,"box":{"x":69,"y":506,"width":837,"height":11}},{"id":"8f572002-355b-4b32-9a92-5cbbf8cf5994","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":127,"box":{"x":70,"y":521,"width":825,"height":11}},{"id":"0c9ce559-0ddd-4046-9d2a-cb08190e8c25","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":127,"box":{"x":68,"y":536,"width":802,"height":11}},{"id":"b8c91a54-9899-4c14-807e-b33cee8b7ff8","block_type":"box","text":"(other than U.S. Government Securities or securities of other regulated investment companies) of any one issuer, any","page_number":127,"box":{"x":69,"y":551,"width":837,"height":11}},{"id":"fc61a793-0898-4045-8226-244721f068ce","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":127,"box":{"x":68,"y":566,"width":819,"height":11}},{"id":"176008cc-d3da-44ba-820d-7e44e0ea924b","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":127,"box":{"x":69,"y":581,"width":828,"height":11}},{"id":"0e6d5db2-297b-46fd-8ccb-5118607aea21","block_type":"box","text":"(","page_number":127,"box":{"x":69,"y":597,"width":3,"height":10}},{"id":"1858dcaf-e031-4323-9add-a47f0a70abab","block_type":"box","text":"i.e.","page_number":127,"box":{"x":74,"y":597,"width":21,"height":8}},{"id":"c2b35060-47f0-4156-bc34-cbfd8cd2298c","block_type":"box","text":", par tnerships that are traded on an established securities market or tradable on a secondary market, other than","page_number":127,"box":{"x":97,"y":597,"width":806,"height":11}},{"id":"55fddb64-ea97-499a-8387-7058fbf04f7f","block_type":"box","text":"par tnerships that derive 90% of their income from interest, dividends, capital gains and other traditionally permitted","page_number":127,"box":{"x":70,"y":612,"width":824,"height":11}},{"id":"b6c80d2e-db51-4ec6-8b0b-ba5013032b91","block_type":"box","text":"mutual fund income). For purposes of this restriction, the Municipal Funds generally will regard each state and each","page_number":127,"box":{"x":69,"y":627,"width":824,"height":11}},{"id":"4964f0b6-1fcd-4724-8ef0-f9ad3d28b033","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":127,"box":{"x":69,"y":642,"width":838,"height":11}},{"id":"ddac0716-a183-44b3-8cc5-765144de2262","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":127,"box":{"x":69,"y":657,"width":815,"height":11}},{"id":"39c2735d-86e7-4bce-84c3-317342f5f085","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":127,"box":{"x":69,"y":672,"width":781,"height":11}},{"id":"c30ebf73-ee21-44b5-b308-7226f5cbc6b7","block_type":"box","text":"government entity, then the entity with the ultimate responsibility for the payment of interest and principal may be","page_number":127,"box":{"x":68,"y":687,"width":810,"height":11}},{"id":"64919532-dab5-47ac-aa9d-81a38cd0382c","block_type":"box","text":"regarded as the sole issuer.","page_number":127,"box":{"x":69,"y":703,"width":198,"height":11}},{"id":"b9e7f9a8-5c43-420e-8ad5-6c17c59416da","block_type":"box","text":"Foreign government securities (unlike U.S. Government Securities) are not exempt from the 5%, 10% and 25%","page_number":127,"box":{"x":102,"y":725,"width":784,"height":11}},{"id":"51a4069c-35ae-4a7f-a9c6-c59dc34ba94c","block_type":"box","text":"diversification requirements of the Code discussed above and the securities of each foreign government issuer are","page_number":127,"box":{"x":69,"y":740,"width":819,"height":11}},{"id":"f8c555f0-b081-43a1-bd94-aec53d8af79a","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":127,"box":{"x":69,"y":755,"width":811,"height":11}},{"id":"4e288fb0-effc-49f4-b3de-408c069fca8c","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":127,"box":{"x":70,"y":770,"width":747,"height":12}},{"id":"2cb283b5-c480-4ff7-ba3b-abc9253bca15","block_type":"box","text":"“diversified” under the Investment Company Act must satisfy the foregoing 5% and 10% requirements with respect to","page_number":127,"box":{"x":70,"y":785,"width":834,"height":12}},{"id":"78cce6f2-fc40-46bc-acbe-7c0ddc26bc16","block_type":"box","text":"75% of its total assets.","page_number":127,"box":{"x":69,"y":801,"width":165,"height":9}},{"id":"31e8e588-3fd0-417a-9a31-d008a8bfbc60","block_type":"box","text":"II-81","page_number":127,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"9d4a6f63-0bce-463f-acaf-3fc257638b29","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":127,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"babd8720-6020-4b41-bee7-99600562a92c","block_type":"box","text":"MANAGEMENT AND OTHER SERVICE ARRANGEMENTS","page_number":128,"box":{"x":268,"y":45,"width":442,"height":10}},{"id":"e004c9d5-aea4-4509-98c9-43c571d5f184","block_type":"box","text":"Directors and Officers","page_number":128,"box":{"x":69,"y":76,"width":159,"height":8}},{"id":"e79eecde-f809-43ee-ae09-4b08e8d16c06","block_type":"box","text":"See “Information on Directors and Officers, ‘—Biographical Information,’ ‘— Share Ownership’ and ‘—","page_number":128,"box":{"x":102,"y":98,"width":733,"height":11}},{"id":"bb2e55be-3034-449e-8dfb-13b9ddbfbb63","block_type":"box","text":"Compensation of Directors’” or “Information on Trustees and Officers, ‘—Biographical Information,’ ‘— Share","page_number":128,"box":{"x":69,"y":113,"width":783,"height":12}},{"id":"baabe9d7-e600-4e19-b3b7-efd31b8e4c6a","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":128,"box":{"x":69,"y":128,"width":795,"height":12}},{"id":"55b3b801-dcd7-45d2-9982-5f3441700494","block_type":"box","text":"cer tain other information relating to the Directors and officers of your Fund, including Directors’ compensation.","page_number":128,"box":{"x":69,"y":143,"width":789,"height":12}},{"id":"eaceafb8-c70a-46d6-9959-099704f36d9d","block_type":"box","text":"Management Arrangements","page_number":128,"box":{"x":69,"y":174,"width":202,"height":11}},{"id":"a10f1857-61ad-4f11-89f4-c49f61498f63","block_type":"box","text":"Management Services.","page_number":128,"box":{"x":102,"y":197,"width":162,"height":11}},{"id":"ae0013f5-b8ed-4be5-8f82-5ca2e850fc19","block_type":"box","text":"The Manager provides each Fund with investment advisory and management services.","page_number":128,"box":{"x":270,"y":197,"width":615,"height":11}},{"id":"5ea98c4c-8059-4288-862a-ec512f87abbb","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":128,"box":{"x":69,"y":212,"width":836,"height":11}},{"id":"0148078b-8f41-4970-b894-cdd7c860b2d8","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":128,"box":{"x":70,"y":227,"width":820,"height":11}},{"id":"f938d459-8c95-4220-835a-a16edc8b4a05","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":128,"box":{"x":68,"y":242,"width":832,"height":11}},{"id":"c12c437a-e5b1-422d-b454-68eb573ef4ff","block_type":"box","text":"per forms cer tain of the other administrative services and provides all the office space, facilities, equipment and","page_number":128,"box":{"x":70,"y":257,"width":801,"height":11}},{"id":"2dfc2ef4-ff96-4fb8-861d-7198ab4c1dcc","block_type":"box","text":"necessary personnel for management of each Fund.","page_number":128,"box":{"x":69,"y":272,"width":370,"height":11}},{"id":"7818b6c3-8edd-455a-be5e-78820cbd4cc2","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":128,"box":{"x":102,"y":295,"width":778,"height":11}},{"id":"5cc8f487-ce05-4f18-9935-5d90e61aee63","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":128,"box":{"x":70,"y":310,"width":800,"height":11}},{"id":"9b618fb9-53ff-492c-9f25-da96c682fdc4","block_type":"box","text":"require management services. For such Feeder Funds, por tfolio management occurs at the Master Por tfolio level.","page_number":128,"box":{"x":69,"y":325,"width":810,"height":11}},{"id":"fa2de0dd-0069-4704-8944-0a1ae70c0103","block_type":"box","text":"Management Fee.","page_number":128,"box":{"x":102,"y":348,"width":126,"height":11}},{"id":"f1fbabbc-2dff-4179-aa28-e53b547f0e8f","block_type":"box","text":"Each Fund has entered into a Management Agreement with the Manager pursuant to which","page_number":128,"box":{"x":235,"y":348,"width":646,"height":11}},{"id":"db44d47d-7df6-4edd-b087-d10a03cde560","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":128,"box":{"x":68,"y":363,"width":841,"height":11}},{"id":"df5753e0-9c0e-4cd7-a53c-58660ad0cef2","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":128,"box":{"x":69,"y":378,"width":833,"height":11}},{"id":"ea910bd8-ce9b-4ee5-ae27-3dc921bedea1","block_type":"box","text":"fiscal years or other applicable periods, see “Management, Advisory and Other Service Arrangements —","page_number":128,"box":{"x":68,"y":393,"width":746,"height":11}},{"id":"212b2f28-ac69-429f-bf9b-bf0030a85326","block_type":"box","text":"Management Agreement” or “Management and Advisory Arrangements,” as applicable, in Par t I of each Fund’s SAI.","page_number":128,"box":{"x":70,"y":408,"width":825,"height":11}},{"id":"b303c7b5-f56c-43cb-b3c6-7bdd0e4c0c52","block_type":"box","text":"For Funds that do not have an administrator, each Management Agreement obligates the Manager to provide","page_number":128,"box":{"x":102,"y":431,"width":774,"height":11}},{"id":"2a3b41b5-d765-4b22-be11-8b0ef311b3c7","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":128,"box":{"x":69,"y":446,"width":826,"height":11}},{"id":"163258d7-60ba-4c80-9780-d388cc3bab6c","block_type":"box","text":"in connection with investment and economic research, trading and investment management of the Fund, as well as","page_number":128,"box":{"x":70,"y":461,"width":820,"height":11}},{"id":"cf966854-5c42-48e0-b7c6-58958bfd040e","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":128,"box":{"x":68,"y":476,"width":797,"height":11}},{"id":"cec4a81a-2e24-4726-8a70-ef9713c0f005","block_type":"box","text":"incurred in the operation of that Fund, including among other things: taxes; expenses for legal and auditing services;","page_number":128,"box":{"x":70,"y":491,"width":830,"height":12}},{"id":"cfffc3af-c4e3-4b12-bc9f-c7b7c1360d04","block_type":"box","text":"costs of preparing, printing and mailing proxies, shareholder repor ts, prospectuses and statements of additional","page_number":128,"box":{"x":69,"y":506,"width":802,"height":12}},{"id":"4a95f4a9-f5f8-4051-ba26-aded23d62863","block_type":"box","text":"information, except to the extent paid by BlackRock Investments, LLC (“BRIL” or the “Distributor”); charges of the","page_number":128,"box":{"x":70,"y":521,"width":809,"height":12}},{"id":"6b2d175d-4065-4492-908e-88b9e260ead7","block_type":"box","text":"custodian and sub-custodian, and the transfer agent; expenses of redemption of shares; Commission fees; expenses","page_number":128,"box":{"x":69,"y":537,"width":838,"height":11}},{"id":"bbbebbe6-db6d-42cb-87d7-b5080db174ae","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":128,"box":{"x":69,"y":552,"width":830,"height":11}},{"id":"67d56e53-a43a-45e9-a6ae-0a26ddb84639","block_type":"box","text":"persons of a Fund as defined in the Investment Company Act; accounting and pricing costs (including the daily","page_number":128,"box":{"x":70,"y":567,"width":784,"height":11}},{"id":"04a1a168-d9f3-4ede-a73c-72531c0949fb","block_type":"box","text":"calculations of NAV); insurance; interest; brokerage costs; litigation and other extraordinary or non-recurring","page_number":128,"box":{"x":69,"y":582,"width":767,"height":11}},{"id":"99f6c885-c2c2-484c-ad14-dc592915e6c6","block_type":"box","text":"expenses; and other expenses properly payable by the Fund. Cer tain accounting services are provided to each Fund","page_number":128,"box":{"x":69,"y":597,"width":825,"height":11}},{"id":"7743f965-41ac-4934-99a5-4604318aff8b","block_type":"box","text":"by State Street Bank and Trust Company (“State Street”), The Bank of New York Mellon (“BNY Mellon”) or JPMorgan","page_number":128,"box":{"x":69,"y":612,"width":827,"height":11}},{"id":"82d59647-b3b6-47ef-b39e-ca6601a8f282","block_type":"box","text":"Chase Bank, N.A. (“JPM”) pursuant to an agreement between State Street, BNY Mellon or JPM, as applicable, and","page_number":128,"box":{"x":69,"y":627,"width":814,"height":12}},{"id":"cedf5f61-23d9-4b29-a03b-1217a01911b8","block_type":"box","text":"each Fund. Each Fund pays a fee for these services. The Distributor pays cer tain promotional expenses of the Funds","page_number":128,"box":{"x":69,"y":642,"width":832,"height":12}},{"id":"23dfe9ca-21fa-49c5-9b47-9d2828e3ace5","block_type":"box","text":"incurred in connection with the offering of shares of the Funds. Cer tain expenses are financed by each Fund pursuant","page_number":128,"box":{"x":70,"y":658,"width":839,"height":11}},{"id":"ac6e9bf5-5d09-4671-a829-daa9968f494b","block_type":"box","text":"to distribution plans in compliance with Rule 12b-1 under the Investment Company Act. See “Purchase of Shares —","page_number":128,"box":{"x":68,"y":673,"width":828,"height":11}},{"id":"b5e534bf-9184-4bd3-8dd2-37fa9fe816b0","block_type":"box","text":"Distribution and/or Shareholder Servicing Plans.”","page_number":128,"box":{"x":70,"y":688,"width":350,"height":11}},{"id":"bf50a6af-8fb0-4f30-91bd-6f2d512903c9","block_type":"box","text":"Sub-Advisory Fee.","page_number":128,"box":{"x":102,"y":711,"width":124,"height":11}},{"id":"7415b200-3703-4a6d-b411-210ee84338bc","block_type":"box","text":"The Manager of cer tain Funds has entered into one or more sub-advisory agreements (the","page_number":128,"box":{"x":232,"y":710,"width":643,"height":12}},{"id":"c234ecc7-2297-4b53-b74d-76e2379114f6","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":128,"box":{"x":70,"y":726,"width":839,"height":11}},{"id":"2a168d4e-b77f-4913-a8d3-77a8f3f08b12","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":128,"box":{"x":68,"y":741,"width":830,"height":11}},{"id":"992e8d21-ad0a-460f-9e2b-859e43393519","block_type":"box","text":"Organization of the Manager.","page_number":128,"box":{"x":102,"y":763,"width":204,"height":12}},{"id":"3f080438-a51e-4ff7-a2c0-5d87cf090b3e","block_type":"box","text":"BlackRock Advisors, LLC is a Delaware limited liability company and BlackRock","page_number":128,"box":{"x":313,"y":763,"width":560,"height":12}},{"id":"691d2a4d-e49c-4362-8d88-ea7b2227675d","block_type":"box","text":"Fund Advisors is a California corporation. Each Manager is an indirect, majority-owned subsidiary of BlackRock, Inc.","page_number":128,"box":{"x":70,"y":778,"width":819,"height":12}},{"id":"ad147358-4e32-4c4d-834c-a53c3dac65f8","block_type":"box","text":"BlackRock, Inc., through its subsidiaries and divisions, provides (i) investment management services to individuals","page_number":128,"box":{"x":70,"y":794,"width":817,"height":11}},{"id":"7d0663fc-4ecb-4123-99a0-74d9c705559f","block_type":"box","text":"and institutional investors through separate account management, non-discretionary advisory programs and","page_number":128,"box":{"x":69,"y":809,"width":768,"height":11}},{"id":"3a8465de-41fc-4aa6-8d2d-3017202ed191","block_type":"box","text":"commingled investment vehicles; (ii) risk management services, investment accounting and trade processing tools;","page_number":128,"box":{"x":69,"y":824,"width":821,"height":11}},{"id":"5b1d4f68-7c7f-4ffb-9793-0d384ccee2cd","block_type":"box","text":"(iii) transition management services, and (iv) securities lending services.","page_number":128,"box":{"x":69,"y":839,"width":517,"height":11}},{"id":"8f2056f4-33db-4cc6-8099-d41a08720b3d","block_type":"box","text":"Duration and Termination.","page_number":128,"box":{"x":102,"y":862,"width":182,"height":9}},{"id":"e33874ee-c1bb-4c37-ae70-8fbb3400db6d","block_type":"box","text":"Unless earlier terminated as described below, each Management Agreement and each","page_number":128,"box":{"x":292,"y":862,"width":613,"height":11}},{"id":"c44f0f5c-b22e-4361-add0-df673f6de2fd","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":128,"box":{"x":69,"y":877,"width":835,"height":11}},{"id":"bff22397-6911-476d-b4ff-c1e2d7675bc4","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":128,"box":{"x":69,"y":892,"width":803,"height":11}},{"id":"e38356c8-8965-48b8-89de-e2c78ceb740f","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":128,"box":{"x":69,"y":907,"width":839,"height":11}},{"id":"a55cee6d-ef88-4008-bed8-2270a20e89b8","block_type":"box","text":"II-82","page_number":128,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"dc9fcd8b-b0c0-4ab2-a9c5-ba2e30f92676","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":128,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a680ef1b-b6c4-486d-ac52-4ac04e6cbdae","block_type":"box","text":"in the Investment Company Act) of any such par ty. Each Management Agreement automatically terminates on","page_number":129,"box":{"x":70,"y":45,"width":778,"height":11}},{"id":"6a00be24-41da-46b2-8378-15ecab8a17eb","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":129,"box":{"x":69,"y":60,"width":832,"height":11}},{"id":"37da9eee-7b2d-41d5-85fe-1335955d7f4d","block_type":"box","text":"by the vote of the shareholders of the applicable Fund.","page_number":129,"box":{"x":69,"y":75,"width":388,"height":11}},{"id":"08401ecc-66af-4e65-b925-627e43924499","block_type":"box","text":"Other Service Arrangements","page_number":129,"box":{"x":69,"y":105,"width":205,"height":11}},{"id":"568d399c-9520-4b75-8f65-7d827b75e170","block_type":"box","text":"Administrative Services and Administrative Fee.","page_number":129,"box":{"x":101,"y":128,"width":338,"height":9}},{"id":"997583ff-ccd9-4de0-833c-d8958fb63145","block_type":"box","text":"Cer tain Funds have entered into an administration agreement","page_number":129,"box":{"x":446,"y":128,"width":439,"height":11}},{"id":"a5f3a301-c537-47fc-b717-5acaf0b6da22","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":129,"box":{"x":69,"y":143,"width":818,"height":11}},{"id":"d785b8f4-aa94-4940-a5f5-06d1ec5a0717","block_type":"box","text":"SAI (each an “Administrator”). 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For information regarding any administrative fees paid by","page_number":129,"box":{"x":69,"y":173,"width":833,"height":11}},{"id":"eda04de8-678b-43ca-a121-5a15d4f1a954","block_type":"box","text":"your Fund to the Administrator for the periods indicated, see “Management, Advisory and Other Service","page_number":129,"box":{"x":68,"y":188,"width":738,"height":12}},{"id":"08087b00-8c4f-4822-a0aa-5e54264dbc40","block_type":"box","text":"Arrangements — Administration Agreement” or “Management and Advisory Arrangements,” as applicable, in Par t I of","page_number":129,"box":{"x":68,"y":203,"width":839,"height":12}},{"id":"c849acf3-0433-47a7-b3a5-2d4d392f4169","block_type":"box","text":"that Fund’s SAI.","page_number":129,"box":{"x":68,"y":219,"width":113,"height":8}},{"id":"27f0b2c8-405f-434c-ad9e-69c93af0e75d","block_type":"box","text":"For Funds that have an Administrator, the Administration Agreement obligates the Administrator to provide","page_number":129,"box":{"x":102,"y":241,"width":755,"height":11}},{"id":"1fb4d610-1922-4d49-8ab8-ebcb88712c9b","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":129,"box":{"x":69,"y":256,"width":800,"height":12}},{"id":"cdd6431f-6f4f-4d42-aaa1-f959075de5a0","block_type":"box","text":"personnel and to provide office space, facilities and necessary personnel for the Fund. 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Such contract is not assignable","page_number":129,"box":{"x":70,"y":385,"width":810,"height":11}},{"id":"d127e9b7-9549-4c73-9be1-cad48799850c","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":129,"box":{"x":69,"y":400,"width":805,"height":11}},{"id":"30a886de-b3c9-428c-a053-74c2572b82ca","block_type":"box","text":"shareholders of the Fund.","page_number":129,"box":{"x":69,"y":415,"width":181,"height":9}},{"id":"6ab08c7d-6731-4148-b99e-50577c37fdb8","block_type":"box","text":"Transfer Agency Services.","page_number":129,"box":{"x":103,"y":438,"width":180,"height":11}},{"id":"bb6e9979-456b-4339-b576-b1d71d6e9f05","block_type":"box","text":"BNY Mellon Investment Servicing (US) Inc. (in this capacity, the “Transfer Agent”), a","page_number":129,"box":{"x":291,"y":438,"width":595,"height":11}},{"id":"475503c4-8b92-4894-b12c-7e25e7f1b82e","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":129,"box":{"x":69,"y":453,"width":816,"height":11}},{"id":"606f8045-a4ee-4fa4-990a-9be27703e0cf","block_type":"box","text":"Agency, Dividend Disbursing Agency and Shareholder Servicing Agency Agreement (the “Transfer Agency Agreement”)","page_number":129,"box":{"x":68,"y":468,"width":833,"height":11}},{"id":"65117574-3022-4f7d-861f-fe0e090878bf","block_type":"box","text":"with the Funds. Pursuant to the Transfer Agency Agreement, the Transfer Agent is responsible for the issuance,","page_number":129,"box":{"x":68,"y":483,"width":792,"height":11}},{"id":"d593c308-2d8c-4105-b7c5-d144cc799c41","block_type":"box","text":"transfer and redemption of shares and the opening and maintenance of shareholder accounts. Each Fund pays the","page_number":129,"box":{"x":68,"y":498,"width":819,"height":11}},{"id":"9ddc78ff-ff65-45ae-af03-bc85d866b98d","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. 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For","page_number":129,"box":{"x":68,"y":543,"width":813,"height":12}},{"id":"945565c2-80cc-451c-870f-561914f74944","block_type":"box","text":"purposes of each Transfer Agency Agreement, the term “account” includes a shareholder account maintained directly","page_number":129,"box":{"x":70,"y":559,"width":836,"height":11}},{"id":"8279f54f-998b-4042-bb4e-df4487220b91","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":129,"box":{"x":69,"y":574,"width":806,"height":11}},{"id":"c5108a83-63a4-4256-a456-1a6a9a46808f","block_type":"box","text":"class on a recordkeeping system.","page_number":129,"box":{"x":69,"y":589,"width":238,"height":11}},{"id":"130da540-d479-426e-b608-8ffd04347a65","block_type":"box","text":"Independent Registered Public Accounting Firm.","page_number":129,"box":{"x":102,"y":612,"width":338,"height":11}},{"id":"13f11671-98db-4aed-93eb-f9520f2cb853","block_type":"box","text":"The Audit Committee of each Fund, the members of which are","page_number":129,"box":{"x":446,"y":612,"width":441,"height":10}},{"id":"46d3a6bd-1e9a-4a0e-8bae-b0d6f3d3ee37","block_type":"box","text":"non-interested Directors of the Fund, has selected an independent registered public accounting firm for that Fund that","page_number":129,"box":{"x":69,"y":627,"width":840,"height":11}},{"id":"52988d33-2cef-42e5-83c7-6909837b74b7","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":129,"box":{"x":69,"y":642,"width":823,"height":11}},{"id":"66de54da-7ab8-407f-a5e0-123890b09392","block_type":"box","text":"of this SAI for information on your Fund’s independent registered public accounting firm.","page_number":129,"box":{"x":69,"y":657,"width":627,"height":11}},{"id":"62e2a1a2-cd2c-4ff5-91aa-0f21ffe5bbf0","block_type":"box","text":"Custodian Services.","page_number":129,"box":{"x":102,"y":680,"width":141,"height":9}},{"id":"2f9977bf-9439-4618-85d9-837ab21dc5e6","block_type":"box","text":"The name and address of the custodian (the “Custodian”) of each Fund are provided on the","page_number":129,"box":{"x":249,"y":680,"width":654,"height":11}},{"id":"a29a7f31-19c6-4da9-8f1c-60ca1fba7e59","block_type":"box","text":"inside back cover page of the Fund’s Prospectus. The Custodian is responsible for safeguarding and controlling the","page_number":129,"box":{"x":70,"y":695,"width":820,"height":11}},{"id":"33dff8f4-7a7d-4491-82d2-c84dd6a54df6","block_type":"box","text":"Fund’s cash and securities, handling the receipt and delivery of securities and collecting interest and dividends on","page_number":129,"box":{"x":70,"y":710,"width":814,"height":11}},{"id":"7052333d-de3d-43dd-9fd6-50cdafb8e072","block_type":"box","text":"the Fund’s investments. The Custodian is authorized to establish separate accounts in foreign currencies and to","page_number":129,"box":{"x":68,"y":725,"width":802,"height":11}},{"id":"919baf0d-9f93-4d90-b764-69db9d227678","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":129,"box":{"x":69,"y":740,"width":839,"height":11}},{"id":"af74b019-d6de-4269-9ca9-a44e288c2462","block_type":"box","text":"banks and securities depositories. A Fund also may use special purpose custodian banks from time to time for","page_number":129,"box":{"x":69,"y":755,"width":792,"height":11}},{"id":"87467b83-287d-4217-afe1-223a13149815","block_type":"box","text":"cer tain assets.","page_number":129,"box":{"x":69,"y":771,"width":106,"height":8}},{"id":"df6ae99c-794b-457d-8ae6-ebef375d18a4","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":129,"box":{"x":102,"y":793,"width":716,"height":10}},{"id":"cf07ea96-99ea-419c-b4a5-0db54de09a43","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":129,"box":{"x":102,"y":816,"width":803,"height":11}},{"id":"8f5c6893-c111-435c-ba4b-5d9b34207425","block_type":"box","text":"basis the Custodian nets the Fund’s daily positive and negative cash balances and calculates a credit (“custody","page_number":129,"box":{"x":69,"y":831,"width":799,"height":11}},{"id":"d4e8823d-1ed2-4a72-96d7-1a0a4fe30b40","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":129,"box":{"x":69,"y":846,"width":834,"height":11}},{"id":"4f72e3bd-4deb-4fa3-a026-044834d5ab5b","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":129,"box":{"x":69,"y":861,"width":826,"height":11}},{"id":"78209431-7d23-4f3a-b8a7-49486761803b","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":129,"box":{"x":69,"y":876,"width":807,"height":11}},{"id":"cfa79c03-cff6-4d0c-8578-0fdf408be575","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":129,"box":{"x":68,"y":891,"width":836,"height":12}},{"id":"c8eed501-1ea3-4aef-9e92-0c44f5bae602","block_type":"box","text":"Fund.","page_number":129,"box":{"x":70,"y":907,"width":36,"height":8}},{"id":"b09d625d-ba5c-49c5-ab1c-429a8a69ef3f","block_type":"box","text":"II-83","page_number":129,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"5990e61a-253c-4321-aa55-d5d7ebffc25a","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":129,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"dccdd18a-d14b-40db-8722-b7e5e467e46b","block_type":"box","text":"Accounting Services.","page_number":130,"box":{"x":101,"y":45,"width":148,"height":11}},{"id":"3f2ac2df-f072-4a38-9082-3d29c7dda71c","block_type":"box","text":"Each Fund has entered into an agreement with State Street, BNY Mellon or JPM, pursuant","page_number":130,"box":{"x":256,"y":45,"width":641,"height":11}},{"id":"38b40013-d386-4c24-974d-12fe3de751bf","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":130,"box":{"x":68,"y":60,"width":829,"height":11}},{"id":"c423d5c8-fa2c-4a2c-a928-ca0b784b2819","block_type":"box","text":"Fund pays a fee for these services. State Street, BNY Mellon or JPM provides similar accounting services to the","page_number":130,"box":{"x":70,"y":75,"width":797,"height":11}},{"id":"3a238c50-c9de-40ba-898b-c6ddf7df0520","block_type":"box","text":"Master LLCs.","page_number":130,"box":{"x":70,"y":90,"width":91,"height":9}},{"id":"59134196-496c-4846-a648-aa663147faf7","block_type":"box","text":"See “Management, Advisory and Other Service Arrangements — Accounting Services” or “Management and","page_number":130,"box":{"x":102,"y":113,"width":771,"height":11}},{"id":"c7ee78ae-5523-413e-a956-ae595d7601c9","block_type":"box","text":"Advisory Arrangements — Accounting Services,” as applicable, in Par t I of each Fund’s SAI for information on the","page_number":130,"box":{"x":68,"y":128,"width":810,"height":11}},{"id":"56455f99-b785-4740-ae21-9d5050914b4a","block_type":"box","text":"amounts paid by your Fund and, if applicable, Master LLC to State Street, BNY Mellon or JPM and the Manager or, if","page_number":130,"box":{"x":69,"y":143,"width":828,"height":11}},{"id":"9bf84cce-12fe-4093-8a5f-ed7ba3878c1c","block_type":"box","text":"applicable, the Administrator for the periods indicated.","page_number":130,"box":{"x":69,"y":158,"width":386,"height":11}},{"id":"52027745-2c71-455f-9071-028db0d1bf44","block_type":"box","text":"Distribution Expenses.","page_number":130,"box":{"x":102,"y":181,"width":158,"height":11}},{"id":"3009902a-57a0-4366-8bb9-83e717ef80e4","block_type":"box","text":"Each Fund has entered into a distribution agreement with the Distributor in connection","page_number":130,"box":{"x":267,"y":181,"width":614,"height":11}},{"id":"18ef96d7-4e6d-47d3-814b-09e00b795e11","block_type":"box","text":"with the continuous offering of each class of shares of the Fund (the “Distribution Agreements”). 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shareholders, prospective shareholders, consultants,","page_number":134,"box":{"x":69,"y":299,"width":818,"height":11}},{"id":"f5635bd3-3a7e-49e1-811f-c2e3225fddb7","block_type":"box","text":"and third-par ty data providers upon request, as soon as such data is available.","page_number":134,"box":{"x":69,"y":314,"width":562,"height":11}},{"id":"3c91a8f7-185f-417d-9a7a-c4781aec080d","block_type":"box","text":"Contact Information.","page_number":134,"box":{"x":102,"y":337,"width":144,"height":9}},{"id":"3bbf0b72-644f-4124-9f8a-19447e7fc242","block_type":"box","text":"For information about por tfolio holdings and characteristics, BlackRock fund shareholders","page_number":134,"box":{"x":253,"y":337,"width":639,"height":11}},{"id":"b97c1911-0d6e-4c2e-9e6a-9a4b27ee4dc7","block_type":"box","text":"and prospective investors should call the number set out on the back cover of the 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In some cases, this system may adversely affect the size or price of the assets purchased or sold for a","page_number":135,"box":{"x":69,"y":831,"width":835,"height":11}},{"id":"8daa4f5d-bac5-477a-99ae-6f8ac1e74657","block_type":"box","text":"Fund. In addition, transactions in investments by one or more other accounts managed by BlackRock may have the","page_number":135,"box":{"x":70,"y":846,"width":817,"height":11}},{"id":"383fc2c0-eaf9-4ee3-b633-26e5555dd202","block_type":"box","text":"effect of diluting or otherwise disadvantaging the values, prices or investment strategies of a Fund, par ticularly, but","page_number":135,"box":{"x":69,"y":861,"width":823,"height":11}},{"id":"0a14e229-9788-412b-8870-582dd358e7c8","block_type":"box","text":"not limited to, with respect to small capitalization, emerging market or less liquid strategies. This may occur with","page_number":135,"box":{"x":69,"y":876,"width":803,"height":11}},{"id":"fb794a02-8160-4499-be46-d7158e61340f","block_type":"box","text":"respect to BlackRock-advised accounts when investment decisions regarding a Fund are based on research or other","page_number":135,"box":{"x":69,"y":891,"width":827,"height":12}},{"id":"a2807c1d-5593-4553-bdfa-629920749045","block_type":"box","text":"information that is also used to suppor t decisions for other accounts. When BlackRock implements a por tfolio","page_number":135,"box":{"x":70,"y":906,"width":785,"height":11}},{"id":"ddec6631-58ac-4b71-83bb-08de663fa987","block_type":"box","text":"II-89","page_number":135,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"644b7012-bb36-42e8-b293-b64fcbb75dfa","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":135,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5d4bd74c-6dfd-4b0e-8bfc-64eb45195320","block_type":"box","text":"decision or strategy on behalf of another account ahead of, or contemporaneously with, similar decisions or","page_number":136,"box":{"x":69,"y":45,"width":767,"height":11}},{"id":"a83f4dc2-71b7-40f3-960a-475675cb2e96","block_type":"box","text":"strategies for a Fund, market impact, liquidity constraints, or other factors could result in the Fund receiving less","page_number":136,"box":{"x":69,"y":60,"width":802,"height":11}},{"id":"f12c018f-4c8f-4c23-b29a-38577b82d427","block_type":"box","text":"favorable trading results and the costs of implementing such decisions or strategies could be increased or the Fund","page_number":136,"box":{"x":68,"y":75,"width":827,"height":11}},{"id":"e10aba1e-d3aa-4c3d-9b83-8766544d96a9","block_type":"box","text":"could otherwise be disadvantaged. BlackRock may, in cer tain cases, elect to implement internal policies and","page_number":136,"box":{"x":69,"y":90,"width":776,"height":11}},{"id":"11851983-118d-4d4f-9267-4b050292a41e","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":136,"box":{"x":70,"y":105,"width":774,"height":11}},{"id":"888ea8f1-f57c-4fe2-b44f-456b52d00a71","block_type":"box","text":"activities, including purchasing or disposing of securities, when it might otherwise be desirable for it to do so.","page_number":136,"box":{"x":69,"y":120,"width":781,"height":12}},{"id":"259b976a-ddba-4802-8ad5-180926956650","block_type":"box","text":"Conflicts may also arise because por tfolio decisions regarding a Fund may benefit other accounts managed by","page_number":136,"box":{"x":69,"y":135,"width":787,"height":12}},{"id":"9e8fab4c-8267-46f0-b700-9123bd95167d","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":136,"box":{"x":70,"y":150,"width":809,"height":12}},{"id":"348823fc-dafc-4337-9f56-06bf3ed2c08b","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":136,"box":{"x":70,"y":166,"width":805,"height":11}},{"id":"2a441ea6-40bb-4e1e-bd1a-8bd9f56d7903","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":136,"box":{"x":70,"y":181,"width":797,"height":11}},{"id":"ef943ad5-f637-4069-90ad-700a38941990","block_type":"box","text":"security held by (and therefore benefit) BlackRock or its other accounts or funds.","page_number":136,"box":{"x":69,"y":196,"width":573,"height":11}},{"id":"08298642-e3df-4f5b-964e-2dbf68619df6","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":136,"box":{"x":102,"y":218,"width":797,"height":12}},{"id":"9a684078-ea64-4700-b0a8-39d582df8d17","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":136,"box":{"x":69,"y":234,"width":791,"height":11}},{"id":"5496a47e-a0d3-48d0-93d2-d390f1778560","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":136,"box":{"x":69,"y":249,"width":835,"height":11}},{"id":"c2b35ea8-b0d5-402c-b906-a48c7400035d","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":136,"box":{"x":69,"y":264,"width":812,"height":11}},{"id":"1cec3b1a-947a-43e3-8eaa-982311f3c793","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":136,"box":{"x":69,"y":279,"width":803,"height":11}},{"id":"c891249d-dae2-4512-a24e-d7020473f828","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":136,"box":{"x":70,"y":294,"width":783,"height":11}},{"id":"49c65603-147d-42d5-beed-0d794f2c14a4","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":136,"box":{"x":69,"y":309,"width":818,"height":11}},{"id":"4ddaad62-881d-4713-99a5-a06f34c6c3d6","block_type":"box","text":"BlackRock addresses these and other potential conflicts of interest based on the facts and circumstances of","page_number":136,"box":{"x":70,"y":324,"width":777,"height":11}},{"id":"4c012035-0e54-45ca-816f-8440bc3ad4c8","block_type":"box","text":"par ticular situations. For example, BlackRock may determine to rely on information barriers between different","page_number":136,"box":{"x":70,"y":339,"width":780,"height":12}},{"id":"9d2281ea-c1d2-4f57-a1b7-ae07122123ec","block_type":"box","text":"business units or por tfolio management teams. BlackRock may also determine to rely on the actions of similarly","page_number":136,"box":{"x":69,"y":355,"width":802,"height":11}},{"id":"0f342404-1bfc-407e-be5c-01812a15a44e","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":136,"box":{"x":69,"y":370,"width":817,"height":11}},{"id":"b45c6469-cffd-477e-9fd7-2bf0603f3a27","block_type":"box","text":"Funds.","page_number":136,"box":{"x":70,"y":385,"width":44,"height":9}},{"id":"1f716a04-80e0-4d04-b6bd-f77a42789125","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":136,"box":{"x":102,"y":407,"width":755,"height":12}},{"id":"b121e93e-7443-454b-8526-1611f8ecc419","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":136,"box":{"x":69,"y":423,"width":836,"height":11}},{"id":"ca2412c2-302e-4228-9eb1-96e4b9cc56a0","block_type":"box","text":"result in conflicts of interest relating to asset allocation, timing of Fund purchases and redemptions, and increased","page_number":136,"box":{"x":69,"y":438,"width":821,"height":11}},{"id":"95261102-19e9-496a-83f8-0805bba8a68d","block_type":"box","text":"remuneration and profitability for BlackRock and/or its personnel, including por tfolio managers.","page_number":136,"box":{"x":69,"y":453,"width":679,"height":11}},{"id":"be2d67aa-1cf0-4368-9cc1-a4b916eb4a43","block_type":"box","text":"Third par ties, including service providers to BlackRock or the Fund, may sponsor events (including, but not","page_number":136,"box":{"x":101,"y":476,"width":760,"height":11}},{"id":"c0b33474-331a-4bdd-bb14-bbc0ce4cb67a","block_type":"box","text":"limited to, marketing and promotional activities and presentations, educational training programs and conferences)","page_number":136,"box":{"x":70,"y":491,"width":818,"height":11}},{"id":"a12be3da-94b5-46fb-ac1d-498c62cf81fc","block_type":"box","text":"for registered representatives, other professionals and individual investors. There is a potential conflict of interest as","page_number":136,"box":{"x":68,"y":506,"width":836,"height":11}},{"id":"cdafd2b1-6fe0-4e70-b3ff-4606a9f24a2b","block_type":"box","text":"such sponsorships may defray the costs of such activities to BlackRock, and may provide an incentive to BlackRock","page_number":136,"box":{"x":69,"y":521,"width":825,"height":11}},{"id":"99256200-19ea-4ec3-9aca-48e18865e806","block_type":"box","text":"to retain such third par ties to provide services to the Fund.","page_number":136,"box":{"x":68,"y":536,"width":421,"height":11}},{"id":"a0b30a77-f317-4599-bc33-68efbb3df4b2","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":136,"box":{"x":102,"y":559,"width":794,"height":11}},{"id":"18d527d3-6e26-412a-86bc-9619b061222d","block_type":"box","text":"fund or account advised by BlackRock. BlackRock may (but is not required to) effect purchases and sales between","page_number":136,"box":{"x":68,"y":574,"width":817,"height":11}},{"id":"b5974806-891d-496f-a8fd-f98a7474ec28","block_type":"box","text":"BlackRock clients (“cross trades”), including the Funds, if BlackRock believes such transactions are appropriate","page_number":136,"box":{"x":70,"y":589,"width":797,"height":11}},{"id":"d8f27238-57ab-42cf-8b95-6306046b70b9","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":136,"box":{"x":69,"y":604,"width":826,"height":11}},{"id":"dbf50317-763a-4d9d-9dee-88cd1a391fa1","block_type":"box","text":"potential conflicts of interest or regulatory issues relating to these transactions which could limit BlackRock’s","page_number":136,"box":{"x":70,"y":619,"width":780,"height":11}},{"id":"b96c907a-28c8-40a2-927f-2d4bb37eebd1","block_type":"box","text":"decision to engage in these transactions for the Funds. BlackRock may have a potentially conflicting division of","page_number":136,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"a8aadb0c-a346-4356-9830-a50c40159301","block_type":"box","text":"loyalties and responsibilities to the par ties in such transactions.","page_number":136,"box":{"x":70,"y":650,"width":457,"height":11}},{"id":"cb436c74-d718-4bfc-9628-763f31b9bb1d","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":136,"box":{"x":102,"y":672,"width":784,"height":11}},{"id":"ce9be362-ecac-4149-80ff-dc1ac2fde439","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":136,"box":{"x":69,"y":687,"width":840,"height":11}},{"id":"a7a2fe27-bf0a-441e-a51d-7be78d0fdf54","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":136,"box":{"x":70,"y":702,"width":827,"height":12}},{"id":"70ddecfd-bf6d-4d16-aa4f-286a5ec1068e","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":136,"box":{"x":70,"y":717,"width":828,"height":12}},{"id":"7bfd22f2-1c78-4c0a-a209-247871df3026","block_type":"box","text":"case.","page_number":136,"box":{"x":69,"y":735,"width":37,"height":7}},{"id":"ae26f38d-067b-4714-aa00-2e5a4b6d7974","block_type":"box","text":"The results of a Fund’s investment activities may differ significantly from the results achieved by BlackRock for","page_number":136,"box":{"x":101,"y":755,"width":791,"height":11}},{"id":"68e5ee02-dbdb-43fe-abe0-834741f2b795","block_type":"box","text":"its proprietary accounts or other accounts (including investment companies or collective investment vehicles) that it","page_number":136,"box":{"x":70,"y":771,"width":824,"height":11}},{"id":"261bb120-b3e4-49e3-822a-28d27264dc86","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":136,"box":{"x":69,"y":786,"width":798,"height":11}},{"id":"25e6992f-dd31-4fb2-9d71-8e9787a47787","block_type":"box","text":"accounts will achieve investment results that are substantially more or less favorable than the results achieved by a","page_number":136,"box":{"x":69,"y":801,"width":828,"height":11}},{"id":"829ff036-cc7a-47e9-990a-3ca234624a6a","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":136,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"9426d756-25e9-4a3a-95a1-28061147e735","block_type":"box","text":"accounts managed or advised by BlackRock achieve significant profits. The opposite result is also possible.","page_number":136,"box":{"x":69,"y":831,"width":767,"height":11}},{"id":"9a300949-dad2-413c-8095-ba620f248d44","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":136,"box":{"x":102,"y":853,"width":766,"height":12}},{"id":"c78dca5c-f878-4850-ac8d-107dcc95150a","block_type":"box","text":"investment activities because of regulatory, legal or contractual requirements applicable to BlackRock or other","page_number":136,"box":{"x":70,"y":869,"width":786,"height":11}},{"id":"d1f5fea7-8bfd-4a35-a33c-f0601faa7ded","block_type":"box","text":"accounts managed or advised by BlackRock, and/or the internal policies of BlackRock designed to comply with such","page_number":136,"box":{"x":69,"y":884,"width":828,"height":11}},{"id":"f715cbbc-584c-4ebe-b712-1b04d60c9cf7","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":136,"box":{"x":69,"y":899,"width":831,"height":11}},{"id":"58d4c314-f87c-4936-abe3-1cfc8ad1a49a","block_type":"box","text":"II-90","page_number":136,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f890c0f3-67e0-46cb-b499-d10943812711","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":136,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d829a3e1-b352-4588-953f-7fc12663dc5d","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":137,"box":{"x":68,"y":45,"width":825,"height":11}},{"id":"ccd2ffa5-6abe-4202-8967-5aa57dd1a180","block_type":"box","text":"when position limits have been reached. For example, the investment activities of BlackRock for its proprietary","page_number":137,"box":{"x":68,"y":60,"width":790,"height":11}},{"id":"14e9ce26-b344-4680-9636-8da426807d27","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":137,"box":{"x":69,"y":75,"width":830,"height":11}},{"id":"bdd67fb5-8adf-4768-9110-03e227e8518d","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":137,"box":{"x":69,"y":90,"width":827,"height":11}},{"id":"f9bbd45e-62ae-48ee-bce7-d4530487c41c","block_type":"box","text":"issuers, by affiliated foreign investors.","page_number":137,"box":{"x":70,"y":105,"width":271,"height":11}},{"id":"923d3ded-18ec-4a81-8c37-851b35116826","block_type":"box","text":"In connection with its management of a Fund, BlackRock may have access to cer tain fundamental analysis and","page_number":137,"box":{"x":102,"y":128,"width":792,"height":11}},{"id":"597b1ffe-f703-430f-9265-33c9d5dcb287","block_type":"box","text":"proprietary technical models developed by BlackRock. BlackRock will not be under any obligation, however, to effect","page_number":137,"box":{"x":70,"y":143,"width":826,"height":11}},{"id":"b6da8c64-e4ed-437d-b5d3-628cc16461eb","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":137,"box":{"x":68,"y":158,"width":821,"height":11}},{"id":"9e6c7bd9-75e5-47e6-8f45-f1db3547cd17","block_type":"box","text":"any obligation to make available any information regarding its proprietary activities or strategies, or the activities or","page_number":137,"box":{"x":69,"y":173,"width":821,"height":11}},{"id":"51588ad7-135d-447c-ac94-cefac7e24ed3","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":137,"box":{"x":69,"y":188,"width":793,"height":12}},{"id":"b23a6124-4422-45e9-9718-692ea0d0825e","block_type":"box","text":"anticipated that BlackRock will have access to such information for the purpose of managing the Fund. The","page_number":137,"box":{"x":69,"y":203,"width":762,"height":12}},{"id":"2cde53d6-e47a-4b2a-81d7-b6a091f48d10","block_type":"box","text":"proprietary activities or por tfolio strategies of BlackRock, or the activities or strategies used for accounts managed by","page_number":137,"box":{"x":70,"y":218,"width":839,"height":12}},{"id":"a455e268-1fd0-451a-8ce8-9486e012004e","block_type":"box","text":"BlackRock or other client accounts could conflict with the transactions and strategies employed by BlackRock in","page_number":137,"box":{"x":70,"y":234,"width":795,"height":11}},{"id":"94fc5c9e-1c37-44b7-a30b-6043682e6153","block_type":"box","text":"managing a Fund.","page_number":137,"box":{"x":69,"y":249,"width":124,"height":11}},{"id":"c54912bb-404c-48f5-9e18-530bf034095f","block_type":"box","text":"The Funds may be included in investment models developed by BlackRock for use by clients and financial","page_number":137,"box":{"x":101,"y":271,"width":751,"height":12}},{"id":"fd987ec1-c352-49d3-8b7f-73e34a693874","block_type":"box","text":"advisors. To the extent clients invest in these investment models and increase the assets under management of the","page_number":137,"box":{"x":69,"y":286,"width":830,"height":12}},{"id":"3de37836-0878-46c9-ad34-0da343322c6c","block_type":"box","text":"Funds, the investment management fee amounts paid by the Funds to BlackRock may also increase. The net asset","page_number":137,"box":{"x":70,"y":302,"width":820,"height":11}},{"id":"eda96244-786d-4ea7-8460-c7b4f73bb1a8","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":137,"box":{"x":68,"y":317,"width":785,"height":11}},{"id":"6a213beb-9332-4a74-a7fe-fe6355ea9705","block_type":"box","text":"por tfolios, as well as by BlackRock itself and by its advisory clients.","page_number":137,"box":{"x":70,"y":332,"width":481,"height":11}},{"id":"b9e6483d-066a-45ef-b910-6dec19903059","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":137,"box":{"x":102,"y":355,"width":754,"height":11}},{"id":"33341d78-b724-4eeb-8909-512cc89de061","block_type":"box","text":"employees of other business units or entities within BlackRock. As a result, these principals and employees may","page_number":137,"box":{"x":69,"y":370,"width":804,"height":11}},{"id":"f10bdd3e-a79a-4e26-8805-dc46db5274d4","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":137,"box":{"x":69,"y":385,"width":831,"height":11}},{"id":"0fed089f-ee10-49d7-9f75-4d00d5ecc29b","block_type":"box","text":"or entities or their clients may be a consideration of which investors in a Fund should be aware.","page_number":137,"box":{"x":69,"y":400,"width":680,"height":11}},{"id":"74b52cbf-99f1-4f5e-90a7-60dce7029be9","block_type":"box","text":"BlackRock may enter into transactions and invest in securities, instruments and currencies on behalf of a Fund","page_number":137,"box":{"x":102,"y":423,"width":791,"height":11}},{"id":"3af114a5-951c-41eb-be0a-83887e7fab99","block_type":"box","text":"in which clients of BlackRock, or, to the extent permitted by the Commission and applicable law, BlackRock, serves","page_number":137,"box":{"x":70,"y":438,"width":820,"height":11}},{"id":"093322c2-864d-4093-a4fa-7f7f0aad17cd","block_type":"box","text":"as the counterpar ty, principal or issuer. In such cases, such par ty’s interests in the transaction will be adverse to the","page_number":137,"box":{"x":69,"y":453,"width":837,"height":11}},{"id":"180b0eb8-d4f5-4cac-965b-4ad9002f7e39","block_type":"box","text":"interests of the Fund, and such par ty may have no incentive to assure that the Fund obtains the best possible prices","page_number":137,"box":{"x":70,"y":468,"width":832,"height":11}},{"id":"d04747ce-81bf-4446-955e-dca3538d951e","block_type":"box","text":"or terms in connection with the transactions. In addition, the purchase, holding and sale of such investments by a","page_number":137,"box":{"x":69,"y":483,"width":813,"height":11}},{"id":"7457c9ad-5166-459c-8b34-809fe66a8ea1","block_type":"box","text":"Fund may enhance the profitability of BlackRock.","page_number":137,"box":{"x":70,"y":498,"width":344,"height":11}},{"id":"4ac7366f-20f1-44b4-b362-ac6a505ab7fc","block_type":"box","text":"BlackRock may also create, write or issue derivatives for clients, the underlying securities, currencies or","page_number":137,"box":{"x":102,"y":521,"width":741,"height":11}},{"id":"c8d3556e-c06b-4c78-9aac-07bd38025c29","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":137,"box":{"x":70,"y":536,"width":824,"height":11}},{"id":"40cd715b-94b8-45a8-9be3-7779255e0b38","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":137,"box":{"x":68,"y":551,"width":825,"height":11}},{"id":"f8f4b862-e674-416b-99b7-76549b56f1eb","block_type":"box","text":"cer tain Funds. BlackRock has entered into an arrangement with Markit Indices Limited, the index provider for","page_number":137,"box":{"x":69,"y":566,"width":777,"height":11}},{"id":"8a9cb509-5227-488d-b374-20b65f52e2af","block_type":"box","text":"underlying fixed-income indexes used by cer tain iShares ETFs, related to derivative fixed-income products that are","page_number":137,"box":{"x":69,"y":581,"width":810,"height":12}},{"id":"72507bbc-a557-474b-a121-1e4331442aa9","block_type":"box","text":"based on such iShares ETFs. Trading activity in these derivative products could also potentially lead to greater","page_number":137,"box":{"x":69,"y":597,"width":784,"height":11}},{"id":"6ba90800-e32a-4df2-b196-90dd0c8364ff","block_type":"box","text":"liquidity for such products, increased purchase activity with respect to these iShares ETFs and increased assets","page_number":137,"box":{"x":70,"y":612,"width":798,"height":11}},{"id":"fa2e6e8a-102b-40df-8068-35120c779b9c","block_type":"box","text":"under management for BlackRock.","page_number":137,"box":{"x":69,"y":627,"width":243,"height":11}},{"id":"3735bd56-b65d-4fba-810d-9f528a33dbc8","block_type":"box","text":"A Fund may, subject to applicable law, purchase investments that are the subject of an underwriting or other","page_number":137,"box":{"x":101,"y":649,"width":773,"height":12}},{"id":"5e7450d2-5d79-4caa-9eb1-e33e86c0f168","block_type":"box","text":"distribution by BlackRock and may also enter into transactions with other clients of BlackRock where such other","page_number":137,"box":{"x":69,"y":664,"width":797,"height":12}},{"id":"69251be0-b04c-4397-bf61-9b36bf1e47c7","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":137,"box":{"x":69,"y":680,"width":817,"height":11}},{"id":"ad2f8f48-9eb9-4380-aaf6-362b64baf679","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":137,"box":{"x":68,"y":695,"width":837,"height":11}},{"id":"da470e1c-4078-48ca-89ae-1aabdfb054e9","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":137,"box":{"x":70,"y":710,"width":781,"height":11}},{"id":"d2292607-44e1-4099-9f49-c7f66117f34d","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":137,"box":{"x":101,"y":733,"width":779,"height":11}},{"id":"61e5e145-0b1b-451a-8018-238645056c2d","block_type":"box","text":"other commercial capacities for a Fund. It is anticipated that the commissions, mark-ups, mark-downs, financial","page_number":137,"box":{"x":69,"y":748,"width":795,"height":11}},{"id":"3e7da783-0595-4637-be1c-9e0ed96302fa","block_type":"box","text":"advisory fees, underwriting and placement fees, sales fees, financing and commitment fees, brokerage fees, other","page_number":137,"box":{"x":69,"y":763,"width":821,"height":11}},{"id":"6af424a5-22fb-49a1-9d18-9647abbad86f","block_type":"box","text":"fees, compensation or profits, rates, terms and conditions charged by BlackRock will be in its view commercially","page_number":137,"box":{"x":68,"y":778,"width":802,"height":11}},{"id":"bfdc62f8-5fe8-4140-8b61-2c7ce85fe3b6","block_type":"box","text":"reasonable, although BlackRock, including its sales personnel, will have an interest in obtaining fees and other","page_number":137,"box":{"x":69,"y":793,"width":792,"height":11}},{"id":"537f1531-fc26-4dba-bde4-397306730059","block_type":"box","text":"amounts that are favorable to BlackRock and such sales personnel, which may have an adverse effect on the Funds.","page_number":137,"box":{"x":69,"y":808,"width":832,"height":11}},{"id":"9cb5ad19-9562-4832-a31c-4e05342373fe","block_type":"box","text":"Index based funds may use an index provider that is affiliated with another service provider of the Fund or BlackRock","page_number":137,"box":{"x":70,"y":823,"width":833,"height":11}},{"id":"c06e8475-6e6f-4d52-aa23-f47060889dc2","block_type":"box","text":"that acts as a broker, dealer, agent, lender or in other commercial capacities for a Fund or BlackRock.","page_number":137,"box":{"x":68,"y":838,"width":726,"height":12}},{"id":"4f3374ac-2e04-4c86-be40-cc305c8a76b6","block_type":"box","text":"Subject to applicable law, BlackRock (and its personnel and other distributors) will be entitled to retain fees and","page_number":137,"box":{"x":102,"y":861,"width":796,"height":11}},{"id":"fd6b324d-b7e4-45ff-8f64-2f57d96d3cb5","block_type":"box","text":"other amounts that they receive in connection with their service to the Funds as broker, dealer, agent, lender, adviser","page_number":137,"box":{"x":69,"y":876,"width":837,"height":11}},{"id":"22a338dc-fa85-4efd-b31a-275f43983ef0","block_type":"box","text":"or in other commercial capacities. No accounting to the Funds or their shareholders will be required, and no fees or","page_number":137,"box":{"x":69,"y":891,"width":823,"height":12}},{"id":"243485f8-9f0b-4c98-a2ad-478a21dc2d5d","block_type":"box","text":"II-91","page_number":137,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"25d758ea-7d38-4e3a-89a1-968446d06a02","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":137,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c58821f6-f46a-4226-aa14-339622a568cc","block_type":"box","text":"other compensation payable by the Funds or their shareholders will be reduced by reason of receipt by BlackRock of","page_number":138,"box":{"x":69,"y":45,"width":828,"height":11}},{"id":"562790cb-e607-4d5c-b674-f979bdff11f1","block_type":"box","text":"any such fees or other amounts.","page_number":138,"box":{"x":69,"y":60,"width":230,"height":11}},{"id":"e8d3b311-4329-4550-986c-d025a7ffd175","block_type":"box","text":"When BlackRock acts as broker, dealer, agent, adviser or in other commercial capacities in relation to the Funds,","page_number":138,"box":{"x":101,"y":83,"width":805,"height":11}},{"id":"5000368d-eb03-48ae-9b81-bc32048c9328","block_type":"box","text":"BlackRock may take commercial steps in its own interests, which may have an adverse effect on the Funds.","page_number":138,"box":{"x":70,"y":98,"width":768,"height":11}},{"id":"5036644d-44c4-4ba5-b01b-66925df74ced","block_type":"box","text":"A Fund will be required to establish business relationships with its counterpar ties based on the Fund’s own","page_number":138,"box":{"x":101,"y":120,"width":766,"height":11}},{"id":"622c087e-2ceb-4e7c-8ecc-e25d1572d2f3","block_type":"box","text":"credit standing. BlackRock will not have any obligation to allow its credit to be used in connection with a Fund’s","page_number":138,"box":{"x":69,"y":136,"width":793,"height":11}},{"id":"6150e087-f216-4572-96d7-8bc79bae3416","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":138,"box":{"x":69,"y":150,"width":835,"height":12}},{"id":"9b0d020e-bc93-42df-97df-e688ac847d11","block_type":"box","text":"BlackRock in evaluating the Fund’s creditwor thiness.","page_number":138,"box":{"x":70,"y":166,"width":374,"height":11}},{"id":"4af0af3d-d34b-4a38-bf88-d1f7df7ed51e","block_type":"box","text":"BlackRock Investment Management, LLC (“BIM”) or BlackRock Institutional Trust Company, N.A. (“BTC”), as","page_number":138,"box":{"x":102,"y":188,"width":768,"height":12}},{"id":"d4c35d76-12c3-4f6a-9fa2-899f9e35082f","block_type":"box","text":"applicable, each an affiliate of BlackRock, pursuant to SEC exemptive relief, acts as securities lending agent to, and","page_number":138,"box":{"x":69,"y":203,"width":829,"height":12}},{"id":"d560c9ec-40f6-4f78-a59c-8bec37ce045b","block_type":"box","text":"receives a share of securities lending revenues from, the Funds. BlackRock will also receive compensation for","page_number":138,"box":{"x":69,"y":218,"width":785,"height":12}},{"id":"bc1ef41c-f9d5-4319-8e54-258c0bd587a1","block_type":"box","text":"managing the reinvestment of the cash collateral from securities lending. There are potential conflicts of interests in","page_number":138,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"75a89959-b8e1-44f2-98e7-d4033f571d05","block_type":"box","text":"managing a securities lending program, including but not limited to: (i) BlackRock as securities lending agent may","page_number":138,"box":{"x":69,"y":249,"width":809,"height":11}},{"id":"ef84a78d-7ac5-4b75-a9d0-a65e1ecd7401","block_type":"box","text":"have an incentive to, among other things, increase or decrease the amount of securities on loan or to lend par ticular","page_number":138,"box":{"x":69,"y":264,"width":833,"height":11}},{"id":"eeb96e28-cec2-42e1-ac79-15b6e3e52c18","block_type":"box","text":"securities in order to generate additional risk-adjusted revenue for BlackRock and its affiliates; and (ii) BlackRock as","page_number":138,"box":{"x":69,"y":279,"width":829,"height":11}},{"id":"4f56213d-6fd3-4135-8365-7800ddf06e59","block_type":"box","text":"securities lending agent may have an incentive to allocate loans to clients that would provide more revenue to","page_number":138,"box":{"x":69,"y":294,"width":783,"height":11}},{"id":"790b5218-c5bb-4c81-a957-5c981183896a","block_type":"box","text":"BlackRock. As described fur ther below, BlackRock seeks to mitigate this conflict by providing its securities lending","page_number":138,"box":{"x":70,"y":309,"width":814,"height":11}},{"id":"6f2fc7da-d197-456d-96bb-64504044e72a","block_type":"box","text":"clients with equal lending oppor tunities over time in order to approximate pro rata allocation.","page_number":138,"box":{"x":69,"y":325,"width":660,"height":11}},{"id":"f92abf95-145b-4bca-a428-fdc85830993b","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":138,"box":{"x":101,"y":347,"width":767,"height":11}},{"id":"57b5e081-0dee-4a53-acf8-2978bcef3b9b","block_type":"box","text":"funds against a shor tfall in collateral in the event of borrower default. On a regular basis, BlackRock calculates the","page_number":138,"box":{"x":68,"y":362,"width":820,"height":11}},{"id":"18c49eb0-d122-4892-a147-63a6a701680e","block_type":"box","text":"potential dollar exposure of collateral shor tfall resulting from a borrower default (“shor tfall risk”) in the securities","page_number":138,"box":{"x":70,"y":377,"width":806,"height":12}},{"id":"c3f6af82-6030-4193-bc7d-a2dc0ac41f1b","block_type":"box","text":"lending program. BlackRock establishes program-wide borrower limits (“credit limits”) to actively manage borrower","page_number":138,"box":{"x":70,"y":393,"width":816,"height":11}},{"id":"15be1abe-aa95-40d7-af16-09b2ab0038c9","block_type":"box","text":"specific credit exposure. BlackRock oversees the risk model that calculates projected collateral shor tfall values using","page_number":138,"box":{"x":69,"y":407,"width":838,"height":12}},{"id":"2cc304c9-3eea-4724-912c-d91189a7288e","block_type":"box","text":"loan-level factors such as loan and collateral type and market value as well as specific borrower credit","page_number":138,"box":{"x":70,"y":423,"width":727,"height":11}},{"id":"0c85db04-6fb1-4313-8163-367586e42b6a","block_type":"box","text":"characteristics. When necessary, BlackRock may adjust securities lending program attributes by restricting eligible","page_number":138,"box":{"x":69,"y":438,"width":815,"height":11}},{"id":"090564d7-b4e2-4bcc-9079-bb2987f45959","block_type":"box","text":"collateral or reducing borrower credit limits. As a result, the management of program-wide exposure as well as","page_number":138,"box":{"x":69,"y":453,"width":786,"height":11}},{"id":"f5bc46f4-d7d2-48a7-8946-533dabc82137","block_type":"box","text":"BlackRock-specific indemnification exposure may affect the amount of securities lending activity BlackRock may","page_number":138,"box":{"x":70,"y":468,"width":796,"height":11}},{"id":"5a79d803-181d-4d11-9ff7-9630f96758d7","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":138,"box":{"x":69,"y":483,"width":799,"height":11}},{"id":"9ae44747-fd66-40d5-ac8b-9c9e5b2f2f3b","block_type":"box","text":"asset type, collateral type and/or revenue profile).","page_number":138,"box":{"x":69,"y":498,"width":356,"height":11}},{"id":"0ed78521-33f8-4986-a0eb-00e1b7d87987","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":138,"box":{"x":102,"y":521,"width":801,"height":11}},{"id":"ef47339f-c8b5-4328-8257-c838d3fcd3d2","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":138,"box":{"x":68,"y":536,"width":817,"height":11}},{"id":"5ca9d638-474e-4daf-903e-ea5867b6150f","block_type":"box","text":"and/or market rules, liquidity considerations, or credit considerations, which may impact Funds by reducing or","page_number":138,"box":{"x":69,"y":551,"width":784,"height":11}},{"id":"81fa273e-239f-4373-ab28-5ee624cbb07c","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":138,"box":{"x":69,"y":566,"width":789,"height":11}},{"id":"365d830c-5f2b-461f-835f-8fcf0b92b008","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":138,"box":{"x":70,"y":581,"width":783,"height":11}},{"id":"5f58953b-63cb-41b8-98a8-98c6c2d6b5b4","block_type":"box","text":"BlackRock lenders that provide additional protections against lender default that are favored by their prudential","page_number":138,"box":{"x":70,"y":596,"width":790,"height":12}},{"id":"a13bf238-0a8b-4c9e-9757-0d63cc13511c","block_type":"box","text":"regulation.","page_number":138,"box":{"x":69,"y":612,"width":73,"height":11}},{"id":"18d3936e-ab58-4e00-8541-eec3b2f5161f","block_type":"box","text":"BlackRock uses a predetermined systematic process in order to approximate pro rata allocation over time. In","page_number":138,"box":{"x":102,"y":634,"width":777,"height":11}},{"id":"f4e0d1a8-a62a-45a2-9d93-ca3052966801","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":138,"box":{"x":69,"y":649,"width":830,"height":12}},{"id":"7eaf8aca-7409-4078-8715-4bb4da51164c","block_type":"box","text":"various program limits (","page_number":138,"box":{"x":68,"y":665,"width":168,"height":11}},{"id":"b6105650-2bf3-4319-b885-761fd9a2d440","block_type":"box","text":"i.e.","page_number":138,"box":{"x":238,"y":665,"width":20,"height":8}},{"id":"6e4c6526-d2ea-4674-9217-6d82d4894cfd","block_type":"box","text":"indemnification exposure limit and borrower credit limits); (ii) the lending por tfolio must","page_number":138,"box":{"x":265,"y":664,"width":621,"height":12}},{"id":"60cdf08f-f3c0-41c7-8ab4-9e84942f3d81","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":138,"box":{"x":69,"y":680,"width":827,"height":11}},{"id":"a6023afe-85db-441d-9e5b-a835c4f0ba93","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":138,"box":{"x":69,"y":695,"width":836,"height":11}},{"id":"d41e49d1-cbdf-4d8a-8723-7660fdbd60d9","block_type":"box","text":"In doing so, BlackRock seeks to provide equal lending oppor tunities for all por tfolios, independent of whether","page_number":138,"box":{"x":70,"y":710,"width":780,"height":11}},{"id":"840b83ca-d7ad-45a9-8e88-4b6fc4cc1471","block_type":"box","text":"BlackRock indemnifies the por tfolio. Equal oppor tunities for lending por tfolios does not guarantee equal outcomes.","page_number":138,"box":{"x":70,"y":725,"width":820,"height":11}},{"id":"5d963994-1cc4-4c03-a242-a91451132750","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":138,"box":{"x":69,"y":740,"width":834,"height":11}},{"id":"24cd9934-0141-4048-848d-d043c80a9a3f","block_type":"box","text":"different securities, and the overall limits imposed by the firm.","page_number":138,"box":{"x":69,"y":755,"width":444,"height":11}},{"id":"2e31ea4c-a21a-41d6-9547-23578b46fc3d","block_type":"box","text":"Purchases and sales of securities and other assets for a Fund may be aggregated with orders for other","page_number":138,"box":{"x":102,"y":778,"width":734,"height":11}},{"id":"3e9db793-6bf2-4780-b017-27a3e573aa3c","block_type":"box","text":"BlackRock client accounts, including with accounts that pay different transaction costs solely due to the fact that they","page_number":138,"box":{"x":70,"y":793,"width":840,"height":11}},{"id":"e546744a-0907-45f8-a53b-a7c391d61d26","block_type":"box","text":"have different research payment arrangements. BlackRock, however, is not required to aggregate orders if por tfolio","page_number":138,"box":{"x":69,"y":808,"width":822,"height":11}},{"id":"08887ec6-a977-4607-9f48-0e2433aef484","block_type":"box","text":"management decisions for different accounts are made separately, or if they determine that aggregating is not","page_number":138,"box":{"x":69,"y":823,"width":788,"height":12}},{"id":"cc7ed1db-341b-4f63-9832-a7deff090274","block_type":"box","text":"practicable or required, or in cases involving client direction.","page_number":138,"box":{"x":70,"y":839,"width":426,"height":11}},{"id":"82dbd727-b297-4c9f-87d4-59417d058391","block_type":"box","text":"Prevailing trading activity frequently may make impossible the receipt of the same price or execution on the","page_number":138,"box":{"x":102,"y":861,"width":763,"height":11}},{"id":"0161393d-6c70-41ae-8c95-4ac0defcd3ff","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":138,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"e9b5c0ff-585d-4b6d-9126-75b7795a59c5","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":138,"box":{"x":68,"y":891,"width":767,"height":12}},{"id":"f61a3843-84a4-47cf-9d2a-99831f732f9f","block_type":"box","text":"II-92","page_number":138,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"69841c44-aafd-49ad-9e04-be5c5076e7d0","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":138,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2054492c-1c53-40f9-bb2d-3c09c449e217","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":139,"box":{"x":69,"y":45,"width":828,"height":11}},{"id":"26dd9759-ea59-4271-8088-5550f254e723","block_type":"box","text":"the same commission or commission equivalent rates in connection with an aggregated order.","page_number":139,"box":{"x":68,"y":60,"width":672,"height":11}},{"id":"a5749af6-1b66-4f50-b862-07fa332ba1dc","block_type":"box","text":"As discussed in the section below entitled “Por tfolio Transactions and Brokerage—Transactions in Por tfolio","page_number":139,"box":{"x":101,"y":82,"width":767,"height":12}},{"id":"526ebbab-539e-46f8-a6b0-3936c931c9bc","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":139,"box":{"x":69,"y":98,"width":832,"height":11}},{"id":"3f2af469-9c3f-4cda-a101-bf5065ef4ce5","block_type":"box","text":"commission for effecting a transaction that exceeds the amount another broker or dealer would have charged for","page_number":139,"box":{"x":69,"y":113,"width":805,"height":11}},{"id":"6edfcdba-f9d2-4a4b-b0d5-260747eb7236","block_type":"box","text":"effecting the same transaction in recognition of the value of brokerage and research services provided by that broker","page_number":139,"box":{"x":69,"y":128,"width":836,"height":11}},{"id":"d56805ff-0c66-4308-8535-91f0d4219502","block_type":"box","text":"or dealer. Under MiFID II, EU investment managers, including BlackRock International Limited (“BIL”) which acts as a","page_number":139,"box":{"x":69,"y":143,"width":831,"height":11}},{"id":"4b2d9eaf-872d-46ca-9651-b5854396c13b","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":139,"box":{"x":69,"y":158,"width":812,"height":11}},{"id":"97ddabc4-6148-494d-a791-abd99f76ecef","block_type":"box","text":"than through client commissions.","page_number":139,"box":{"x":68,"y":173,"width":237,"height":11}},{"id":"b566d7ce-6592-47e8-8ff7-ee8017340f3d","block_type":"box","text":"Subject to applicable law, BlackRock may select brokers that furnish BlackRock, the Funds, other BlackRock","page_number":139,"box":{"x":102,"y":196,"width":770,"height":11}},{"id":"5ead0fe5-2f57-4c88-8899-46d4900dd3b7","block_type":"box","text":"client accounts or personnel, directly or through correspondent relationships, with research or other appropriate","page_number":139,"box":{"x":69,"y":211,"width":797,"height":11}},{"id":"f77f74cd-9ac4-47c3-bde4-2cbf2358081b","block_type":"box","text":"services which provide, in BlackRock’s view, appropriate assistance to BlackRock in the investment decision making","page_number":139,"box":{"x":69,"y":226,"width":830,"height":11}},{"id":"9586d5ed-3510-44a5-8aed-2ecfb94caf9a","block_type":"box","text":"process (including with respect to futures, fixed-price offerings and OTC transactions). Such research or other","page_number":139,"box":{"x":70,"y":241,"width":780,"height":11}},{"id":"cecec2ee-cb31-457a-9525-8596b4d20fae","block_type":"box","text":"services may include, to the extent permitted by law, research repor ts on companies, industries and securities;","page_number":139,"box":{"x":69,"y":257,"width":795,"height":10}},{"id":"93f4ccc2-f6df-41a4-a55e-cf7e0a955a19","block_type":"box","text":"economic and financial data; financial publications; proxy analysis; trade industry seminars; computer data bases;","page_number":139,"box":{"x":69,"y":271,"width":815,"height":12}},{"id":"6d864b94-549b-4ce7-a5d4-1abb92ba8c9e","block_type":"box","text":"research-oriented software and other services and products.","page_number":139,"box":{"x":69,"y":286,"width":430,"height":11}},{"id":"c6bf2253-4762-4488-8bf0-dab19723d4d7","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":139,"box":{"x":102,"y":309,"width":785,"height":11}},{"id":"a03106be-a771-4b2e-96f5-195257312d7d","block_type":"box","text":"BlackRock client accounts, including in connection with BlackRock client accounts other than those that pay","page_number":139,"box":{"x":70,"y":325,"width":768,"height":11}},{"id":"6a07c004-8590-465e-a109-5699803cf9ec","block_type":"box","text":"commissions to the broker relating to the research or other service arrangements. Such products and services may","page_number":139,"box":{"x":69,"y":340,"width":826,"height":11}},{"id":"106f6051-b88f-4f71-9110-e62566db6edd","block_type":"box","text":"dispropor tionately benefit other BlackRock client accounts relative to the Funds based on the amount of brokerage","page_number":139,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"e191b332-e912-428a-9842-dfa2adf571c7","block_type":"box","text":"commissions paid by the Funds and such other BlackRock client accounts. For example, research or other services","page_number":139,"box":{"x":69,"y":370,"width":821,"height":11}},{"id":"8698ba99-af65-4d4f-9e7e-f2e8a80b496d","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":139,"box":{"x":68,"y":385,"width":815,"height":11}},{"id":"d46b5d9b-9c3c-46ec-94c2-59e55ae0ba2c","block_type":"box","text":"other BlackRock client accounts may receive the benefit, including dispropor tionate benefits, of economies of scale","page_number":139,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"f87455ff-8f06-441b-947a-7e71c9025b57","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":139,"box":{"x":69,"y":415,"width":804,"height":11}},{"id":"a2f6e1f1-c011-4432-925d-8952a9e91413","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":139,"box":{"x":70,"y":430,"width":819,"height":11}},{"id":"ac3d53c9-dff4-4688-9f7e-f01d89712b99","block_type":"box","text":"and services itself.","page_number":139,"box":{"x":69,"y":445,"width":134,"height":9}},{"id":"f7a414c3-9772-48c9-96cf-0310826eb9ad","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may endeavor to execute trades through brokers who, pursuant","page_number":139,"box":{"x":102,"y":468,"width":793,"height":11}},{"id":"f29d6dff-f190-4c01-9d2f-0b044b5d869e","block_type":"box","text":"to such arrangements, provide research or other services in order to ensure the continued receipt of research or","page_number":139,"box":{"x":68,"y":483,"width":805,"height":11}},{"id":"6fcbbaae-f1a0-4ee9-aceb-a8fd5a536176","block_type":"box","text":"other services BlackRock believes are useful in its investment decision-making process. BlackRock may from time to","page_number":139,"box":{"x":69,"y":498,"width":833,"height":11}},{"id":"0d6e4b14-c157-4393-9041-9362a938c5c0","block_type":"box","text":"time choose not to engage in the above described arrangements to varying degrees. BlackRock, unless prohibited by","page_number":139,"box":{"x":68,"y":514,"width":836,"height":11}},{"id":"d8688424-4e9a-48d3-a242-b363c74b176c","block_type":"box","text":"applicable law, may also enter into commission sharing arrangements under which BlackRock may execute","page_number":139,"box":{"x":69,"y":529,"width":760,"height":11}},{"id":"d64a329b-0fe6-4f7e-ab78-f5ba3abeb7ba","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":139,"box":{"x":68,"y":543,"width":803,"height":12}},{"id":"400a339e-6603-4a5e-b55b-9eb601282897","block_type":"box","text":"commission credits to another firm that provides research to BlackRock. To the extent that BlackRock engages in","page_number":139,"box":{"x":69,"y":559,"width":807,"height":11}},{"id":"54be83b2-74ff-4d19-9002-9d82e909ad33","block_type":"box","text":"commission sharing arrangements, many of the same conflicts related to traditional soft dollars may exist.","page_number":139,"box":{"x":69,"y":574,"width":760,"height":11}},{"id":"e8547d2c-3124-42e1-9c15-5d1e9954aa2c","block_type":"box","text":"BlackRock may utilize cer tain electronic crossing networks (“ECNs”) (including, without limitation, ECNs in which","page_number":139,"box":{"x":102,"y":597,"width":799,"height":11}},{"id":"c83ee770-26f6-4489-98ff-ac0e1f28bb46","block_type":"box","text":"BlackRock has an investment or other interest, to the extent permitted by applicable law) in executing client","page_number":139,"box":{"x":70,"y":612,"width":767,"height":11}},{"id":"a31f7c73-1343-4b39-86d4-51ce294b18aa","block_type":"box","text":"securities transactions for cer tain types of securities. These ECNs may charge fees for their services, including","page_number":139,"box":{"x":69,"y":627,"width":794,"height":11}},{"id":"f0df58ab-e4ae-4c4f-bbcb-26eb1b04494f","block_type":"box","text":"access fees and transaction fees. The transaction fees, which are similar to commissions or markups/ markdowns,","page_number":139,"box":{"x":69,"y":642,"width":825,"height":11}},{"id":"197396ed-db14-4b7e-bd1e-1e3b1d9b269a","block_type":"box","text":"will generally be charged to clients and, like commissions and markups/markdowns, would generally be included in","page_number":139,"box":{"x":68,"y":657,"width":821,"height":11}},{"id":"23cca981-6492-4a50-8c5a-ba3c56607efe","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":139,"box":{"x":68,"y":672,"width":833,"height":11}},{"id":"fc9a391f-6aa6-4dd6-9d84-bc1c81321cce","block_type":"box","text":"executing transactions on behalf of clients, including the Funds. In cer tain circumstances, ECNs may offer volume","page_number":139,"box":{"x":69,"y":687,"width":812,"height":11}},{"id":"600c4fa1-f67f-420d-8f75-a40dad7b929c","block_type":"box","text":"discounts that will reduce the access fees typically paid by BlackRock. BlackRock will only utilize ECNs consistent","page_number":139,"box":{"x":69,"y":702,"width":809,"height":11}},{"id":"96e1c5ea-476f-42f4-848a-865b5879f84e","block_type":"box","text":"with its obligation to seek to obtain best execution in client transactions.","page_number":139,"box":{"x":68,"y":718,"width":519,"height":11}},{"id":"d75d2a40-33c1-4f06-99fc-fbda2d7b256d","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":139,"box":{"x":102,"y":740,"width":793,"height":11}},{"id":"c40fc9dc-5145-4bf9-ba92-0adae43c2f04","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":139,"box":{"x":69,"y":755,"width":782,"height":11}},{"id":"d65df060-d7d3-4625-8676-9572f31aeec4","block_type":"box","text":"appropriate venue for execution of orders placed by BlackRock traders on behalf of client por tfolios.","page_number":139,"box":{"x":69,"y":770,"width":710,"height":11}},{"id":"781320b9-2c8c-4135-9373-e04fc0845388","block_type":"box","text":"BlackRock has adopted policies and procedures designed to prevent conflicts of interest from influencing proxy","page_number":139,"box":{"x":102,"y":793,"width":792,"height":11}},{"id":"38e8defb-ac63-474e-b09f-ab418b598516","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":139,"box":{"x":68,"y":808,"width":784,"height":11}},{"id":"0d8437a9-e98e-4fa1-ae28-31d433f566ae","block_type":"box","text":"decisions are made in accordance with BlackRock’s fiduciary obligations to its clients. Never theless, notwithstanding","page_number":139,"box":{"x":69,"y":823,"width":837,"height":12}},{"id":"67d7d37e-258a-4b7c-ba64-f88511b2959a","block_type":"box","text":"such proxy voting policies and procedures, actual proxy voting decisions of BlackRock may have the effect of favoring","page_number":139,"box":{"x":69,"y":838,"width":835,"height":12}},{"id":"fa5fb06d-d475-4c90-8923-cb861fa801e3","block_type":"box","text":"the interests of other clients or businesses of other divisions or units of BlackRock, provided that BlackRock believes","page_number":139,"box":{"x":68,"y":853,"width":837,"height":11}},{"id":"3335dde7-0f66-49d2-ba1a-d3a6d81068f3","block_type":"box","text":"such voting decisions to be in accordance with its fiduciary obligations. For a more detailed discussion of these","page_number":139,"box":{"x":69,"y":869,"width":795,"height":11}},{"id":"80a8594d-ee00-46d1-9f0b-096784ea6eb3","block_type":"box","text":"policies and procedures, see “Proxy Voting Policies and Procedures.”","page_number":139,"box":{"x":70,"y":884,"width":490,"height":11}},{"id":"90cb668a-7e82-4991-818e-4b38a6623084","block_type":"box","text":"II-93","page_number":139,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c18c3f14-c09e-4a2e-970a-f4e41279d6d3","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":139,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6566635d-f709-480f-bfe2-31852ce57524","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":140,"box":{"x":102,"y":45,"width":757,"height":11}},{"id":"b0e7ba8c-cfaa-4fab-9441-02698ddc190b","block_type":"box","text":"separately managed accounts) may, subject to compliance with applicable law, purchase and hold shares of a Fund.","page_number":140,"box":{"x":69,"y":60,"width":825,"height":11}},{"id":"7661b3e7-4b18-4973-9810-eecbdc711b74","block_type":"box","text":"Increasing a Fund’s assets may enhance investment flexibility and diversification and may contribute to economies of","page_number":140,"box":{"x":70,"y":75,"width":837,"height":11}},{"id":"bc58af81-0960-4cac-ae0b-b7533b536486","block_type":"box","text":"scale that tend to reduce the Fund’s expense ratio. BlackRock reserves the right, subject to compliance with","page_number":140,"box":{"x":69,"y":90,"width":774,"height":11}},{"id":"74800083-ebf7-47e3-b89a-d97c5457f61d","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":140,"box":{"x":69,"y":105,"width":796,"height":11}},{"id":"ee810078-c776-44ac-87a0-62f39b53637c","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":140,"box":{"x":69,"y":120,"width":830,"height":12}},{"id":"aa65055b-fdb6-4be5-a01c-57f2ae86fe78","block_type":"box","text":"an adverse effect on the Fund’s investment flexibility, por tfolio diversification and expense ratio. BlackRock seeks to","page_number":140,"box":{"x":69,"y":135,"width":831,"height":11}},{"id":"addd6bc2-02f4-45ad-98dc-763e9eb430ac","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":140,"box":{"x":69,"y":150,"width":834,"height":12}},{"id":"a3ad0a1c-db96-40df-8f6d-718cdbcf909c","block_type":"box","text":"not obligated to do so and may elect not to do so.","page_number":140,"box":{"x":69,"y":166,"width":355,"height":11}},{"id":"390efbb6-75a7-492f-b097-31b69d7a9cbc","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":140,"box":{"x":102,"y":188,"width":742,"height":12}},{"id":"973585a6-8f88-422c-a9e4-8ea2fc1aa14b","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":140,"box":{"x":70,"y":203,"width":838,"height":12}},{"id":"5bcf362f-6acc-41a9-a7ce-ab37ce56e70b","block_type":"box","text":"structured notes) by entities for which BlackRock provides and is compensated for cash management services","page_number":140,"box":{"x":69,"y":218,"width":788,"height":12}},{"id":"1b91fe86-721a-4345-b3cc-c21e4e288484","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":140,"box":{"x":69,"y":234,"width":816,"height":11}},{"id":"c2fa5360-35f5-4a53-b202-2b1052685c0f","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":140,"box":{"x":69,"y":249,"width":806,"height":11}},{"id":"8b6e535e-f336-4aec-807b-a329857a5f8b","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":140,"box":{"x":68,"y":264,"width":822,"height":11}},{"id":"e81e602f-ba67-4dbb-a8e4-bdfbc2e89fa8","block_type":"box","text":"and sales of securities. As indicated below, BlackRock may engage in transactions with companies in which","page_number":140,"box":{"x":69,"y":279,"width":766,"height":11}},{"id":"3dd8a8a7-86ab-4b0d-9238-f8b5a2bbdc3d","block_type":"box","text":"BlackRock-advised funds or other clients of BlackRock have an investment.","page_number":140,"box":{"x":70,"y":294,"width":533,"height":9}},{"id":"fbe2c309-039e-4a87-8214-101c009b83b5","block_type":"box","text":"BlackRock and its personnel and other financial service providers may have interests in promoting sales of the","page_number":140,"box":{"x":102,"y":317,"width":789,"height":11}},{"id":"2f185c16-3e32-497e-a2ae-8f7fbe908de1","block_type":"box","text":"Funds. With respect to BlackRock and its personnel, the remuneration and profitability relating to services to and","page_number":140,"box":{"x":70,"y":332,"width":805,"height":11}},{"id":"42963d43-62ff-41bf-8f8a-98943207befb","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":140,"box":{"x":69,"y":347,"width":813,"height":11}},{"id":"362f05ef-1b74-4eeb-bfc6-d3113100df50","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":140,"box":{"x":69,"y":362,"width":814,"height":11}},{"id":"c841e7cc-5e97-40f6-8794-e26eeb1c5220","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":140,"box":{"x":69,"y":377,"width":788,"height":12}},{"id":"de77dce1-d015-4a82-9848-9b8f2b6f098e","block_type":"box","text":"BlackRock and its advisory or other personnel may also benefit from increased amounts of assets under","page_number":140,"box":{"x":70,"y":392,"width":745,"height":12}},{"id":"f3f4f62f-6aca-4fb4-af03-29eb5c5aadce","block_type":"box","text":"management. Fees and commissions may also be higher than for other products or services, and the remuneration","page_number":140,"box":{"x":69,"y":407,"width":822,"height":12}},{"id":"65cc5080-0a9e-44bd-b095-1d9dc88b6e7d","block_type":"box","text":"and profitability to BlackRock and such personnel resulting from transactions on behalf of or management of the","page_number":140,"box":{"x":69,"y":423,"width":801,"height":11}},{"id":"44a3eddd-480a-47f2-856f-386ae7e816a6","block_type":"box","text":"Funds may be greater than the remuneration and profitability resulting from other funds or products.","page_number":140,"box":{"x":70,"y":438,"width":711,"height":11}},{"id":"23e4f620-8aea-41f8-885e-43f313d7762d","block_type":"box","text":"BlackRock may provide valuation assistance to cer tain clients with respect to cer tain securities or other","page_number":140,"box":{"x":102,"y":461,"width":741,"height":11}},{"id":"ff970852-dabd-4a8f-9cd4-c6117cc1744d","block_type":"box","text":"investments and the valuation recommendations made for such clients’ accounts may differ from the valuations for","page_number":140,"box":{"x":70,"y":475,"width":823,"height":12}},{"id":"ce89d0da-475c-48c6-b074-ade174b9c957","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":140,"box":{"x":68,"y":491,"width":829,"height":11}},{"id":"9e63120e-4a53-40c3-a85a-c1c78131b4b3","block_type":"box","text":"broker-dealer quotes or other data sources unavailable to the Fund’s pricing vendors. While BlackRock will generally","page_number":140,"box":{"x":69,"y":506,"width":825,"height":11}},{"id":"98196f1f-c959-4e61-80c9-928eeb04094b","block_type":"box","text":"communicate its valuation information or determinations to a Fund’s pricing vendors and/or fund accountants, there","page_number":140,"box":{"x":69,"y":521,"width":830,"height":11}},{"id":"ee47745c-13ff-46ae-aceb-45cb1658da6c","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":140,"box":{"x":69,"y":536,"width":824,"height":11}},{"id":"355a7b86-3c16-4a35-befa-8d1985b5a747","block_type":"box","text":"other investment than the valuation for such security or investment determined or recommended by BlackRock.","page_number":140,"box":{"x":69,"y":551,"width":792,"height":11}},{"id":"b5b1c95a-f8e3-4a03-95ba-718c975f2238","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":140,"box":{"x":101,"y":574,"width":784,"height":11}},{"id":"4b92335c-e3a3-46be-af02-2c56e6153a20","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":140,"box":{"x":69,"y":589,"width":837,"height":11}},{"id":"244683b8-cafa-4db9-9f77-388e917f6590","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":140,"box":{"x":68,"y":604,"width":803,"height":11}},{"id":"7724c2c5-f63c-4812-b7da-77c9d34e9f02","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":140,"box":{"x":69,"y":619,"width":831,"height":11}},{"id":"e63ae795-53ba-471b-b61c-5d83b6f8a8e8","block_type":"box","text":"assistance from other BlackRock pricing committees and in accordance with BlackRock’s policies and procedures","page_number":140,"box":{"x":69,"y":634,"width":811,"height":12}},{"id":"f12915d4-a5b1-4847-bba4-7459644f996a","block_type":"box","text":"(the “Valuation Procedures”). When determining a “fair value price,” the 2a-5 Committee seeks to determine the","page_number":140,"box":{"x":69,"y":649,"width":802,"height":12}},{"id":"813715b6-04db-4c8a-8401-5d178ce08704","block_type":"box","text":"price that a Fund might reasonably expect to receive from the current sale of that asset or liability in an arm’s-length","page_number":140,"box":{"x":70,"y":664,"width":829,"height":12}},{"id":"43473970-1ac6-4756-ae24-29baff0f6aa8","block_type":"box","text":"transaction. The price generally may not be determined based on what a Fund might reasonably expect to receive for","page_number":140,"box":{"x":68,"y":680,"width":832,"height":11}},{"id":"821db99c-bae5-4f32-8b28-82646e151855","block_type":"box","text":"selling an asset or liability at a later time or if it holds the asset or liability to maturity. While fair value determinations","page_number":140,"box":{"x":69,"y":695,"width":837,"height":11}},{"id":"b8fc7092-5a8b-4051-9914-beb7bdb69c83","block_type":"box","text":"will be based upon all available factors that BlackRock deems relevant at the time of the determination, and may be","page_number":140,"box":{"x":68,"y":710,"width":829,"height":11}},{"id":"e298a8e0-1278-404f-a12a-22de2a1b8593","block_type":"box","text":"based on analytical values determined by BlackRock using proprietary or third par ty valuation models, fair value","page_number":140,"box":{"x":69,"y":725,"width":796,"height":11}},{"id":"75cccaf4-ed15-4e6f-8c6b-d155fa225d1e","block_type":"box","text":"represents only a good faith approximation of the value of an asset or liability. The fair value of one or more assets or","page_number":140,"box":{"x":69,"y":740,"width":839,"height":11}},{"id":"98d912d2-800b-4b7f-9e36-84961ee2bd3f","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":140,"box":{"x":70,"y":755,"width":800,"height":11}},{"id":"36209839-14d6-4296-a063-be8e2e4a15ec","block_type":"box","text":"period in which the par ticular fair values were used in determining a Fund’s NAV. As a result, a Fund’s sale or","page_number":140,"box":{"x":70,"y":770,"width":779,"height":12}},{"id":"f730d6e0-2e1a-4b74-a6a8-b0c988bf69e3","block_type":"box","text":"redemption of its shares at NAV, at a time when a holding or holdings are valued by the 2a-5 Committee at fair value,","page_number":140,"box":{"x":69,"y":785,"width":834,"height":12}},{"id":"b014dec2-4ed9-4835-b1b3-75b670b0e241","block_type":"box","text":"may have the effect of diluting or increasing the economic interest of existing shareholders and may affect the","page_number":140,"box":{"x":69,"y":801,"width":788,"height":11}},{"id":"e1a0bf44-73e8-4a9b-a106-f59eeaddcbd9","block_type":"box","text":"amount of revenue received by BlackRock with respect to services for which it receives an asset-based fee.","page_number":140,"box":{"x":69,"y":816,"width":765,"height":11}},{"id":"5a32ea66-b1c6-441f-89b4-4fc39f03485d","block_type":"box","text":"To the extent permitted by applicable law, a Fund may invest all or some of its shor t term cash investments in","page_number":140,"box":{"x":101,"y":838,"width":784,"height":11}},{"id":"14cb3a4e-0597-46ef-b090-4716111fa769","block_type":"box","text":"any money market fund or similarly-managed private fund advised or managed by BlackRock. In connection with any","page_number":140,"box":{"x":69,"y":853,"width":823,"height":12}},{"id":"379817ce-a82e-4ced-9ab3-55ac77e050c2","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":140,"box":{"x":69,"y":869,"width":833,"height":11}},{"id":"c5785e8b-bf5f-40bd-a5af-5641de97a310","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":140,"box":{"x":69,"y":884,"width":822,"height":11}},{"id":"312cba9e-7ec8-482c-b99b-1e73ac9d2052","block_type":"box","text":"some additional expenses.","page_number":140,"box":{"x":69,"y":899,"width":190,"height":11}},{"id":"ff826d2d-d39b-4f19-bca3-4d98fe7d5ddb","block_type":"box","text":"II-94","page_number":140,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a7d4370c-f6ba-4b6a-b735-649a50dee7ac","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":140,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"647d1cf8-1ae3-48e6-9b01-fc23b7671746","block_type":"box","text":"BlackRock and its directors, officers and employees, may buy and sell securities or other investments for their","page_number":141,"box":{"x":102,"y":45,"width":787,"height":11}},{"id":"b20dc887-99fd-4736-86a4-644518e799a9","block_type":"box","text":"own accounts and may have conflicts of interest with respect to investments made on behalf of a Fund. As a result of","page_number":141,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"2a5f1b42-84f7-46ee-a169-2b094b35153a","block_type":"box","text":"differing trading and investment strategies or constraints, positions may be taken by directors, officers and","page_number":141,"box":{"x":69,"y":75,"width":764,"height":11}},{"id":"ca1a21b5-a9e1-4b6c-9363-f91ed4998948","block_type":"box","text":"employees of BlackRock that are the same, different from or made at different times than positions taken for the","page_number":141,"box":{"x":69,"y":90,"width":809,"height":11}},{"id":"70f6d371-6374-4b9e-8f81-5f3a4e5d9d46","block_type":"box","text":"Fund. To lessen the possibility that a Fund will be adversely affected by this personal trading, the Fund, BRIL and","page_number":141,"box":{"x":70,"y":105,"width":802,"height":11}},{"id":"0fc0d87b-27fa-4c00-bed9-80573c1ec94c","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":141,"box":{"x":70,"y":120,"width":828,"height":11}},{"id":"df35f309-b111-44e3-b365-20a75fc4ab8f","block_type":"box","text":"restricts securities trading in the personal accounts of investment professionals and others who normally come into","page_number":141,"box":{"x":69,"y":135,"width":825,"height":12}},{"id":"2ba3b4e4-c3ae-429d-9580-fff2d4d31ebb","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":141,"box":{"x":70,"y":150,"width":816,"height":12}},{"id":"fcc06756-27fe-46bb-8401-7224914a7652","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":141,"box":{"x":70,"y":166,"width":836,"height":11}},{"id":"d068d9ef-500f-4e05-88aa-9ff453ce2b52","block_type":"box","text":"a duplicating fee, by e-mail at publicinfo@sec.gov.","page_number":141,"box":{"x":69,"y":181,"width":352,"height":11}},{"id":"3feae2a2-f78e-4a42-a7ef-0feb42c9416a","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":141,"box":{"x":102,"y":203,"width":768,"height":12}},{"id":"bb8401b2-b397-43f7-9eb0-4532412b7a6d","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":141,"box":{"x":69,"y":219,"width":836,"height":11}},{"id":"598018f5-9e89-4ee3-b6a7-f1bb4afb75fa","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":141,"box":{"x":68,"y":234,"width":839,"height":10}},{"id":"990f87b8-2470-4386-a84e-c4f7c20ff058","block_type":"box","text":"or investment advisers or pursuant to exemptive orders granted to the Funds and/or BlackRock by the Commission.","page_number":141,"box":{"x":69,"y":249,"width":824,"height":11}},{"id":"535f02bf-c6b0-46a7-8ffe-7f7da76d0cfb","block_type":"box","text":"These transactions would be effected in circumstances in which BlackRock determined that it would be appropriate","page_number":141,"box":{"x":68,"y":264,"width":824,"height":11}},{"id":"dbbe953f-2b68-4ca0-ba66-044afa84b31b","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":141,"box":{"x":68,"y":279,"width":826,"height":11}},{"id":"a89475a6-2a63-4717-9860-202bf5a166f3","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":141,"box":{"x":68,"y":294,"width":810,"height":11}},{"id":"63de80ab-ac52-46a6-a494-53341eb2c575","block_type":"box","text":"restricted because of regulatory requirements applicable to BlackRock and/or BlackRock’s internal policies designed","page_number":141,"box":{"x":69,"y":309,"width":834,"height":11}},{"id":"5c844613-d99a-4f40-a85d-1e67340300b4","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":141,"box":{"x":68,"y":324,"width":782,"height":11}},{"id":"feebd888-4601-40ae-a826-7ce6c4b94518","block_type":"box","text":"BlackRock would not be subject to some of those considerations. There may be periods when BlackRock may not","page_number":141,"box":{"x":70,"y":339,"width":807,"height":12}},{"id":"88a898f8-35bb-4452-9ee0-18e4b4f54af0","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":141,"box":{"x":70,"y":355,"width":804,"height":11}},{"id":"b8fdee78-f9d7-41eb-8b73-9199a76dd440","block_type":"box","text":"securities or instruments issued by or related to companies for which BlackRock is per forming advisory or other","page_number":141,"box":{"x":69,"y":370,"width":799,"height":11}},{"id":"74793858-7c72-4ab3-917f-5bdf6ca315b9","block_type":"box","text":"services or has proprietary positions. For example, when BlackRock is engaged to provide advisory or risk","page_number":141,"box":{"x":69,"y":385,"width":755,"height":11}},{"id":"89af4c41-47cc-42e7-8bad-cd9dc8cb6fbe","block_type":"box","text":"management services for a company, BlackRock may be prohibited from or limited in purchasing or selling securities","page_number":141,"box":{"x":69,"y":400,"width":831,"height":11}},{"id":"cdc71754-84f2-4985-bf1c-4a624f9a3833","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":141,"box":{"x":69,"y":415,"width":806,"height":11}},{"id":"f37f467f-eb42-4f1d-8f5b-70bf28b8bfd7","block_type":"box","text":"public information about the company (","page_number":141,"box":{"x":70,"y":430,"width":276,"height":11}},{"id":"ba9ca338-8f37-430f-8a05-a8474ecf561d","block_type":"box","text":"e.g.","page_number":141,"box":{"x":348,"y":432,"width":25,"height":9}},{"id":"d938a51c-8314-443f-a420-77cb1017e5e7","block_type":"box","text":", in connection with par ticipation in a creditors’ committee). Moreover,","page_number":141,"box":{"x":376,"y":430,"width":499,"height":11}},{"id":"9b782e57-d29d-4902-b50e-2e1abf43561b","block_type":"box","text":"applicable provisions of the Investment Company Act or other regulatory considerations may restrict a Fund or","page_number":141,"box":{"x":69,"y":445,"width":784,"height":12}},{"id":"bab4f6af-2b6a-4d1c-ab02-8623c3e4e79e","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":141,"box":{"x":70,"y":460,"width":827,"height":12}},{"id":"a4d646f2-c3b3-4cd0-b2f6-a0eec4bb2f15","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":141,"box":{"x":69,"y":475,"width":830,"height":12}},{"id":"a363448f-57c2-4218-af9f-a6247b782216","block_type":"box","text":"the investment. Similar situations could arise if personnel of BlackRock serve as directors of companies the","page_number":141,"box":{"x":68,"y":491,"width":773,"height":11}},{"id":"ed122d03-ffc8-4cd1-b9c2-56c57d5534ae","block_type":"box","text":"securities of which the Funds wish to purchase or sell. However, if permitted by applicable law, and where consistent","page_number":141,"box":{"x":69,"y":506,"width":832,"height":11}},{"id":"a62914c3-cc11-4ea6-929d-6afed95dc60f","block_type":"box","text":"with BlackRock’s policies and procedures (including the necessary implementation of appropriate information","page_number":141,"box":{"x":68,"y":521,"width":781,"height":11}},{"id":"256c18b2-b638-4f6b-9c91-35aa1ed85fd0","block_type":"box","text":"barriers), the Funds may purchase securities or instruments that are issued by such companies, are the subject of","page_number":141,"box":{"x":69,"y":536,"width":819,"height":11}},{"id":"79997b89-2732-4719-be61-1bee22a6bcea","block_type":"box","text":"an advisory or risk management assignment by BlackRock, or where personnel of BlackRock are directors or officers","page_number":141,"box":{"x":69,"y":551,"width":832,"height":11}},{"id":"14a085e6-06b3-415a-8807-d5d731101dcb","block_type":"box","text":"of the issuer.","page_number":141,"box":{"x":69,"y":566,"width":92,"height":9}},{"id":"e87221fa-536b-44f0-903e-4e67e428bde8","block_type":"box","text":"BlackRock has adopted and implemented policies and procedures that are designed to address potential","page_number":141,"box":{"x":102,"y":589,"width":748,"height":11}},{"id":"a111b155-b914-4174-ab67-54f2c6f8dda2","block_type":"box","text":"conflicts that arise in connection with the advisory services BlackRock provides to Funds and other clients. Cer tain","page_number":141,"box":{"x":69,"y":604,"width":819,"height":11}},{"id":"4d4e78b1-aaec-4efb-a30a-9ea97e0eae46","block_type":"box","text":"BlackRock advisory personnel may take views, and make decisions or recommendations, that are different than or","page_number":141,"box":{"x":70,"y":619,"width":817,"height":11}},{"id":"59ce0b25-bb2b-4ec3-8ab0-2e13559be113","block_type":"box","text":"opposite those of other BlackRock advisory personnel. Cer tain por tfolio management teams within BlackRock may","page_number":141,"box":{"x":69,"y":634,"width":818,"height":12}},{"id":"63e117fc-8134-46a6-812c-a4466a5c0ae3","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":141,"box":{"x":69,"y":649,"width":827,"height":12}},{"id":"2508f306-0f76-4cc5-88b4-87870009c3c0","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":141,"box":{"x":69,"y":664,"width":835,"height":12}},{"id":"7c7840ee-eb66-495a-b655-7b870bf73d80","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":141,"box":{"x":68,"y":680,"width":797,"height":11}},{"id":"45eaff6a-7505-4880-b272-3da41583a701","block_type":"box","text":"information barriers and other policies, and will not have any obligation or other duty to do so.","page_number":141,"box":{"x":70,"y":695,"width":667,"height":11}},{"id":"8b9e0e88-e0fb-43c3-828c-49ffe71515e5","block_type":"box","text":"BlackRock has established cer tain information barriers and other policies to address the sharing of information","page_number":141,"box":{"x":102,"y":717,"width":794,"height":12}},{"id":"802e9155-3496-489f-a315-02299b11e96f","block_type":"box","text":"between different businesses within BlackRock, including with respect to personnel responsible with managing","page_number":141,"box":{"x":69,"y":732,"width":791,"height":12}},{"id":"b72940a7-4e5a-4bb0-9293-16d780755f27","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":141,"box":{"x":70,"y":748,"width":812,"height":11}},{"id":"f1636a9e-96ae-4fad-b01a-233c2e5c584d","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":141,"box":{"x":70,"y":763,"width":818,"height":11}},{"id":"5e966107-ffde-4032-b0ef-563212e6b990","block_type":"box","text":"BlackRock generally will not have access, or will have limited access, to cer tain information and personnel, including","page_number":141,"box":{"x":70,"y":778,"width":830,"height":11}},{"id":"64d1e262-3e70-45b1-9811-719872bf8338","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":141,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"eaf92c93-0cac-4769-a720-802af3ebe2b2","block_type":"box","text":"possessed by such other units. Therefore, BlackRock may not be able to review potential investments for the Funds","page_number":141,"box":{"x":70,"y":808,"width":824,"height":11}},{"id":"000db744-6c81-4165-8fd5-67d9251e209b","block_type":"box","text":"with the benefit of information held by cer tain areas of BlackRock.","page_number":141,"box":{"x":68,"y":823,"width":472,"height":11}},{"id":"936c6d56-4d7b-470f-be99-4f8da96d6e64","block_type":"box","text":"BlackRock may determine to move cer tain personnel, businesses, or business units from one side of an","page_number":141,"box":{"x":102,"y":846,"width":744,"height":11}},{"id":"2b65386b-18cb-4843-9630-4f5582677be9","block_type":"box","text":"information barrier to the other side of the information barrier. In connection therewith, BlackRock personnel,","page_number":141,"box":{"x":70,"y":861,"width":775,"height":11}},{"id":"6c69d0a5-0ace-4cc2-999f-e553b7c3a9a8","block_type":"box","text":"businesses, and business units that were moved will no longer have access to the information and personnel from","page_number":141,"box":{"x":69,"y":876,"width":818,"height":11}},{"id":"131ac907-ef9d-4373-b370-545a82df83a2","block_type":"box","text":"the side of the information barrier from which they were moved. Information obtained in connection with such","page_number":141,"box":{"x":68,"y":891,"width":779,"height":11}},{"id":"6695b333-4fbd-4836-9357-f64215d6319e","block_type":"box","text":"changes to information barriers may limit or restrict the ability of BlackRock to engage in or otherwise effect","page_number":141,"box":{"x":69,"y":906,"width":771,"height":12}},{"id":"89b1550b-a00f-41ae-ab3f-ed10f429246e","block_type":"box","text":"II-95","page_number":141,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c7553a66-1867-4837-9675-be43e450db32","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":141,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"bb554550-72f5-4986-ab80-97ee1398a788","block_type":"box","text":"transactions on behalf of the Funds (including purchasing or selling securities that BlackRock may otherwise have","page_number":142,"box":{"x":68,"y":45,"width":812,"height":11}},{"id":"70145b97-88b0-448a-9b96-3927e7dd7fa4","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":142,"box":{"x":70,"y":60,"width":803,"height":11}},{"id":"6fd73672-8fa6-4de2-be0e-7c72a8c28fd3","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":142,"box":{"x":69,"y":75,"width":813,"height":11}},{"id":"f97ddf91-0499-4e37-b198-ffa374220aca","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":142,"box":{"x":69,"y":90,"width":829,"height":11}},{"id":"3ad8003f-b330-4ff5-a1b5-a0015c6ff610","block_type":"box","text":"a barrier.","page_number":142,"box":{"x":69,"y":105,"width":62,"height":9}},{"id":"25e085d4-0ec3-4dc4-bb36-9c481114babf","block_type":"box","text":"Although the information barriers are intended to allow for independent por tfolio management decision-making","page_number":142,"box":{"x":101,"y":128,"width":788,"height":11}},{"id":"d8e82383-1b49-42b5-a27b-4c553f0468a3","block_type":"box","text":"and proxy voting among cer tain BlackRock businesses, the investment activities of BlackRock for BlackRock clients,","page_number":142,"box":{"x":69,"y":143,"width":827,"height":11}},{"id":"72ce6c12-591c-42df-8fa6-08d941acc5da","block_type":"box","text":"as well as BlackRock’s proprietary accounts, may nonetheless limit the investment strategies and rights of other","page_number":142,"box":{"x":69,"y":158,"width":805,"height":11}},{"id":"a33bde7f-c4a5-403f-81c5-55377ec7f0f5","block_type":"box","text":"clients (including the Fund). As BlackRock’s assets under management increases, BlackRock clients may face greater","page_number":142,"box":{"x":69,"y":173,"width":840,"height":11}},{"id":"09421a7d-2482-49f8-855a-7cef3a2b7c17","block_type":"box","text":"negative impacts due to ownership restrictions and limitations imposed by laws, regulations, rules, regulators, or","page_number":142,"box":{"x":69,"y":188,"width":806,"height":12}},{"id":"a0d00749-feee-4988-8cec-8cf3550ca2c7","block_type":"box","text":"issuers. For example, in cer tain circumstances where a BlackRock client invests in securities issued by companies","page_number":142,"box":{"x":70,"y":204,"width":818,"height":11}},{"id":"3c9ae5dc-557f-4029-8650-862a5a7c8071","block_type":"box","text":"that operate in cer tain industries (","page_number":142,"box":{"x":68,"y":219,"width":244,"height":11}},{"id":"d2072c1f-c267-4c62-bf49-d79e43ab285b","block_type":"box","text":"e.g.","page_number":142,"box":{"x":314,"y":220,"width":25,"height":10}},{"id":"17176966-9110-4c8e-8945-6623d0bcfeff","block_type":"box","text":", banking, insurance, and utilities) or in cer tain emerging or international","page_number":142,"box":{"x":342,"y":219,"width":515,"height":11}},{"id":"7843a4d2-2089-4867-8431-3da7c68d06fd","block_type":"box","text":"markets, or are subject to regulatory or corporate ownership restrictions (","page_number":142,"box":{"x":69,"y":234,"width":523,"height":11}},{"id":"66a29412-df6f-4529-9fa6-44e02c7ece41","block_type":"box","text":"e.g.","page_number":142,"box":{"x":594,"y":235,"width":25,"height":10}},{"id":"31bceafa-5694-496f-94ef-86953de69957","block_type":"box","text":", with mechanisms such as poison pills","page_number":142,"box":{"x":621,"y":234,"width":280,"height":11}},{"id":"f20796ae-d365-431e-952a-65eb7bc6d943","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":142,"box":{"x":70,"y":249,"width":816,"height":11}},{"id":"743cef02-373f-46d5-978d-69ff7fbd8d43","block_type":"box","text":"limits on the aggregate amount invested by BlackRock for its clients and BlackRock’s proprietary accounts that may","page_number":142,"box":{"x":70,"y":264,"width":825,"height":11}},{"id":"398b2bfb-bc76-4a41-bae1-769634d26553","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":142,"box":{"x":69,"y":279,"width":837,"height":11}},{"id":"f4b22d38-877c-427d-8766-dc5af6fb095d","block_type":"box","text":"or non-disapproval or, if exceeded, may cause BlackRock or its clients to be subject to enforcement actions,","page_number":142,"box":{"x":69,"y":294,"width":769,"height":11}},{"id":"d8b67a2c-2873-4d76-83e2-ca89c8d409f1","block_type":"box","text":"disgorgement of share ownership or profits, regulatory restrictions, complex compliance repor ting, increased","page_number":142,"box":{"x":69,"y":309,"width":775,"height":11}},{"id":"93194c0f-1e8b-4dac-b985-810cb4896032","block_type":"box","text":"compliance costs or suffer disadvantages or business restrictions. In light of cer tain restrictions, BlackRock may also","page_number":142,"box":{"x":69,"y":324,"width":839,"height":12}},{"id":"520abaa8-afe8-46e1-a4c1-bef097fde2db","block_type":"box","text":"seek to make indirect investments (","page_number":142,"box":{"x":69,"y":340,"width":255,"height":10}},{"id":"fec1bfd9-a1df-4c15-97bc-f9523bb2a271","block_type":"box","text":"e.g.","page_number":142,"box":{"x":326,"y":341,"width":24,"height":10}},{"id":"204b2b0e-83a7-4c90-a0bd-c577dc102a14","block_type":"box","text":", using derivatives) on behalf of its clients to receive exposure to cer tain","page_number":142,"box":{"x":353,"y":339,"width":514,"height":12}},{"id":"a6af3afb-2b6f-4bbc-b167-f63d04b1481c","block_type":"box","text":"securities in excess of the applicable ownership restrictions and limitations when legally permitted that will expose","page_number":142,"box":{"x":69,"y":355,"width":817,"height":11}},{"id":"c0d82d06-2083-45f3-ade9-57c57acd950a","block_type":"box","text":"such clients to additional costs and additional risks, including any risks associated with investing in derivatives.","page_number":142,"box":{"x":69,"y":370,"width":795,"height":11}},{"id":"8246ee82-46f4-4145-9dbf-3d4778031589","block_type":"box","text":"There may be limited availability of derivatives that provide indirect exposure to an impacted security. BlackRock","page_number":142,"box":{"x":68,"y":385,"width":799,"height":11}},{"id":"d02ce8b6-28aa-4a09-acd7-28609752fd8f","block_type":"box","text":"clients can be subject to more than one ownership limitation depending on each client’s holdings, and each","page_number":142,"box":{"x":69,"y":400,"width":767,"height":11}},{"id":"9fbd67b0-6bde-4445-983b-58033072e8f1","block_type":"box","text":"ownership limitation can impact multiple securities held by the client. Cer tain clients or shareholders may have their","page_number":142,"box":{"x":69,"y":415,"width":829,"height":11}},{"id":"0e9d45de-a346-4197-a71c-ffaace2877e3","block_type":"box","text":"own overlapping obligations to monitor their compliance with ownership limitations across their investments.","page_number":142,"box":{"x":69,"y":430,"width":772,"height":11}},{"id":"7f363682-7ba7-4864-b57e-4c5eea1077b0","block_type":"box","text":"If cer tain aggregate ownership thresholds are reached either through the actions of BlackRock or a BlackRock","page_number":142,"box":{"x":102,"y":453,"width":783,"height":11}},{"id":"2cbf6d51-a3eb-42b0-833e-d1728f3d1ef8","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":142,"box":{"x":69,"y":468,"width":808,"height":11}},{"id":"2af45a8c-99e5-4a70-990d-b919e47545b9","block_type":"box","text":"dispose of investments, or exercise rights (including voting) or under take business transactions, may be restricted by","page_number":142,"box":{"x":69,"y":483,"width":837,"height":11}},{"id":"057daa31-c565-48ea-9c0d-fd1d59f53e5e","block_type":"box","text":"law, regulation, rule, or organizational documents or otherwise impaired. For example, to meet the requirements of","page_number":142,"box":{"x":70,"y":498,"width":818,"height":11}},{"id":"bd2404a5-892e-4bf5-9a7c-4d64bdca611e","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":142,"box":{"x":69,"y":514,"width":821,"height":10}},{"id":"2c716939-bd37-4bfa-9b7b-2f3977a9fc11","block_type":"box","text":"otherwise purchase or hold. The limitation or restriction may be based on the holdings of other BlackRock clients","page_number":142,"box":{"x":69,"y":528,"width":806,"height":12}},{"id":"fcb0c444-81b7-4b6f-82de-323b20c29198","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":142,"box":{"x":70,"y":543,"width":839,"height":12}},{"id":"39e68b4c-b1b8-47c3-8e33-09675b411aaa","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":142,"box":{"x":69,"y":559,"width":826,"height":11}},{"id":"db6ca3ff-ccad-466e-984f-351f93ad908b","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":142,"box":{"x":69,"y":574,"width":807,"height":11}},{"id":"40a4c3fb-5818-443e-b1d2-8ad4476cd1a2","block_type":"box","text":"existing investments, utilize indirect investments, utilize information barriers, or otherwise restrict, forgo, or limit the","page_number":142,"box":{"x":69,"y":589,"width":830,"height":11}},{"id":"613ba972-cccb-4e83-a376-65028be32357","block_type":"box","text":"exercise of rights (including transferring, outsourcing, or limiting voting rights or forgoing the right to receive","page_number":142,"box":{"x":69,"y":604,"width":765,"height":11}},{"id":"ba0cf514-c63a-4a5c-9a38-6e222c36c744","block_type":"box","text":"dividends) when BlackRock, in its sole discretion, deems it appropriate in light of potential regulatory or other","page_number":142,"box":{"x":69,"y":619,"width":781,"height":11}},{"id":"aa0fbde0-995f-4850-ad62-f69e92a01474","block_type":"box","text":"restrictions on ownership or other consequences resulting from reaching investment thresholds. These types of","page_number":142,"box":{"x":69,"y":634,"width":796,"height":12}},{"id":"333c9f7e-edef-42a9-a58f-6f8bc214b1a9","block_type":"box","text":"restrictions could negatively impact a client’s per formance or ability to meet its investment objective.","page_number":142,"box":{"x":69,"y":649,"width":720,"height":12}},{"id":"da506c8e-eb67-49e5-aa64-e1cfc1564cc8","block_type":"box","text":"When BlackRock or a BlackRock client is subject to an ownership limitation, BlackRock may in its discretion seek","page_number":142,"box":{"x":101,"y":672,"width":807,"height":11}},{"id":"f8337b06-840f-4e40-9098-14b4b4691ff7","block_type":"box","text":"permission from the applicable issuers or regulators to exceed the limitation. However, there is no guarantee that","page_number":142,"box":{"x":70,"y":687,"width":810,"height":11}},{"id":"bbbcd3f3-6c62-4e18-ab8d-1b3bffd592fa","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":142,"box":{"x":70,"y":702,"width":829,"height":12}},{"id":"8a7d4d6c-0b2d-451c-9d4b-5364c860b942","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":142,"box":{"x":69,"y":717,"width":824,"height":12}},{"id":"10c0e7f8-8d9d-40f7-9926-08ef7fce8786","block_type":"box","text":"from taking cer tain actions in connection with the approval, order, consent, relief or non-disapproval, which BlackRock","page_number":142,"box":{"x":68,"y":732,"width":841,"height":12}},{"id":"d85a5f8b-dc87-4e93-90e6-2a2c6bf5c454","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":142,"box":{"x":69,"y":748,"width":770,"height":11}},{"id":"1f3eab88-0056-4771-b161-b662fe37a960","block_type":"box","text":"otherwise would take. In those circumstances where ownership thresholds or limitations must be observed,","page_number":142,"box":{"x":69,"y":763,"width":769,"height":11}},{"id":"5b5b8db9-c420-44cc-af95-3cd0abdef876","block_type":"box","text":"BlackRock seeks to allocate limited investment oppor tunities equitably among clients, taking into consideration","page_number":142,"box":{"x":70,"y":778,"width":794,"height":11}},{"id":"f8a06c86-d22d-4dcb-bc39-428a2ed0aa15","block_type":"box","text":"benchmark weight and investment strategy. BlackRock may adopt cer tain controls designed to prevent the","page_number":142,"box":{"x":69,"y":793,"width":757,"height":11}},{"id":"4b56a9ad-5d71-47d5-b9b5-e5541e2a9008","block_type":"box","text":"occurrence of a breach of any applicable ownership threshold or limits, including, for example, when ownership in","page_number":142,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"27d23427-c9f1-4a66-a8cc-23bc17c97d2c","block_type":"box","text":"cer tain securities nears an applicable threshold, BlackRock may limit additional purchases in such securities or, with","page_number":142,"box":{"x":69,"y":823,"width":833,"height":11}},{"id":"d89572d3-af29-4cbe-afb8-f1841dad3ee3","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":142,"box":{"x":69,"y":838,"width":827,"height":11}},{"id":"cd81beac-98a2-4d74-a732-3373d25a475c","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":142,"box":{"x":68,"y":853,"width":803,"height":12}},{"id":"2023f11c-ca4e-4107-98bd-234e345eb5f4","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":142,"box":{"x":70,"y":869,"width":802,"height":11}},{"id":"795536b2-d9c3-4f51-a69b-97eb09fd6581","block_type":"box","text":"reduce these positions to meet the applicable limitations and BlackRock or such client may be subject to regulatory","page_number":142,"box":{"x":69,"y":884,"width":826,"height":11}},{"id":"9a5abad4-b126-49c1-b550-ce98863b5628","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":142,"box":{"x":69,"y":899,"width":834,"height":11}},{"id":"3bc42a32-d6ff-4356-a226-3d6a6620b2f0","block_type":"box","text":"II-96","page_number":142,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d64dde2f-4124-48bd-a389-0639f1b6ab77","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":142,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6ac17706-dd32-464d-bec5-81f6114d5899","block_type":"box","text":"Ownership limitations are highly complex. It is possible that, despite BlackRock’s intent to either comply with or","page_number":143,"box":{"x":102,"y":45,"width":795,"height":11}},{"id":"247ba064-bd92-4edb-a1fa-d58510b06ae8","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":143,"box":{"x":69,"y":60,"width":831,"height":11}},{"id":"1c220e18-27d9-43f4-b768-694b857bfc6a","block_type":"box","text":"regulatory approval, order, consent, relief or non-disapproval that was obtained.","page_number":143,"box":{"x":69,"y":75,"width":566,"height":11}},{"id":"f588c6f8-635c-4084-b0cd-fd214f9dd1c2","block_type":"box","text":"In addition to the foregoing, other ownership thresholds may trigger repor ting requirements to governmental and","page_number":143,"box":{"x":102,"y":98,"width":798,"height":11}},{"id":"9ae9f001-1420-473d-85d2-f7d18dffc95e","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":143,"box":{"x":69,"y":113,"width":823,"height":11}},{"id":"5ac2babb-8981-4fe2-93c9-85ea296ffc2d","block_type":"box","text":"strategy with respect to such security or asset.","page_number":143,"box":{"x":69,"y":128,"width":333,"height":11}},{"id":"703c0aad-881d-490c-adf1-2d5b62120c4f","block_type":"box","text":"BlackRock may maintain securities indices. To the extent permitted by applicable laws, the Funds may seek to","page_number":143,"box":{"x":102,"y":151,"width":785,"height":11}},{"id":"f655dbc9-0fad-4974-b1a3-9f4003f58833","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":143,"box":{"x":70,"y":166,"width":760,"height":11}},{"id":"78f469df-0d05-4dbf-b345-c536be0e70f1","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":143,"box":{"x":70,"y":181,"width":796,"height":11}},{"id":"c36c4e8b-089e-43c2-b336-59705a2a99cd","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":143,"box":{"x":70,"y":196,"width":830,"height":11}},{"id":"0b30c580-2863-473e-a793-6433e277e0cc","block_type":"box","text":"index or index name. In instances where BlackRock charges a unitary management fee, BlackRock may have a","page_number":143,"box":{"x":70,"y":211,"width":788,"height":11}},{"id":"9825d137-afe5-49c8-941d-2d8c7de2feb8","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":143,"box":{"x":68,"y":226,"width":829,"height":11}},{"id":"e346084b-9654-4235-909c-f0570e3821b5","block_type":"box","text":"benefit from the Funds using BlackRock indices by creating increasing acceptance in the marketplace for such","page_number":143,"box":{"x":69,"y":241,"width":784,"height":11}},{"id":"6c119851-2dd0-4d9e-be1c-46edcb0ccdf9","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":143,"box":{"x":70,"y":257,"width":797,"height":11}},{"id":"9acb1e4b-8911-468e-863b-921b3eb9708c","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":143,"box":{"x":70,"y":271,"width":837,"height":12}},{"id":"5fc43b2d-21e9-49b2-a18b-42ff9bec0dcb","block_type":"box","text":"index licensing agreement with BlackRock will be as favorable as those terms offered to other licensees.","page_number":143,"box":{"x":70,"y":286,"width":746,"height":12}},{"id":"3c27edfb-4eba-4c88-888b-68f3a1f3b21d","block_type":"box","text":"BlackRock may enter into contractual arrangements with third-par ty service providers to a Fund (","page_number":143,"box":{"x":102,"y":309,"width":686,"height":11}},{"id":"2bd9c3a2-d22e-46eb-a2d7-85d0a29c8ccc","block_type":"box","text":"e.g.","page_number":143,"box":{"x":790,"y":311,"width":25,"height":9}},{"id":"5e7c8834-56b5-4479-b1b2-3776774e17c4","block_type":"box","text":", custodians,","page_number":143,"box":{"x":817,"y":309,"width":90,"height":11}},{"id":"b9081f5f-a726-4ff1-8f1e-c47cc4388203","block_type":"box","text":"administrators and index providers) pursuant to which BlackRock receives fee discounts or concessions in","page_number":143,"box":{"x":69,"y":324,"width":756,"height":11}},{"id":"92e7919e-5042-45a8-bb98-c4e37bcf6047","block_type":"box","text":"recognition of BlackRock’s overall relationship with such service providers. BlackRock may also enter into contractual","page_number":143,"box":{"x":69,"y":339,"width":836,"height":12}},{"id":"5148d9b5-ae8f-4dd1-9f4d-9807849274dc","block_type":"box","text":"arrangements with such service providers pursuant to which BlackRock incurs additional costs if the service","page_number":143,"box":{"x":69,"y":355,"width":772,"height":11}},{"id":"658ff57d-8fab-48ef-afc5-e5642c4c7a72","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":143,"box":{"x":70,"y":370,"width":800,"height":11}},{"id":"ed348157-f57b-48a7-a294-4fef7e4b3723","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":143,"box":{"x":69,"y":385,"width":771,"height":11}},{"id":"bf2cf697-d99a-4e2b-94e4-25d0e9f3c57c","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":143,"box":{"x":69,"y":400,"width":839,"height":11}},{"id":"cc5ee125-ec2d-44ca-b41e-10724e5ef0c7","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":143,"box":{"x":70,"y":415,"width":785,"height":11}},{"id":"d4e8a55f-19d4-40c9-bb38-b0ddc4f0d812","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":143,"box":{"x":70,"y":430,"width":786,"height":11}},{"id":"d1cf7bce-a99a-497f-9a4d-1f581dd231ed","block_type":"box","text":"selection of such providers, par ticularly in circumstances where BlackRock is negotiating on behalf of both funds that","page_number":143,"box":{"x":69,"y":445,"width":837,"height":12}},{"id":"cf529ae2-81b3-4dc7-af98-35ee2e9d4efc","block_type":"box","text":"have a unitary management fee and those that do not or different service providers have different fee structures.","page_number":143,"box":{"x":69,"y":460,"width":809,"height":12}},{"id":"9f788419-7f17-48b9-87bb-fa81394c4208","block_type":"box","text":"Conflicts of interest may arise as a result of simultaneous investment management of multiple client accounts","page_number":143,"box":{"x":102,"y":483,"width":788,"height":11}},{"id":"6d6afefc-267c-4164-8f02-768591a921a8","block_type":"box","text":"by BlackRock’s investment professionals. For example, differences in the advisory fee structure may create the","page_number":143,"box":{"x":69,"y":498,"width":795,"height":11}},{"id":"036042cf-0e89-4221-b1fe-1321949123ab","block_type":"box","text":"appearance of actual or potential conflicts of interest because such differences could create pecuniary incentives for","page_number":143,"box":{"x":69,"y":513,"width":835,"height":11}},{"id":"6bdd98a8-64d9-4602-97e1-05a0f71ad5bf","block_type":"box","text":"BlackRock to favor one client account over another.","page_number":143,"box":{"x":70,"y":528,"width":363,"height":9}},{"id":"6a58ea51-7ca7-4237-8cf2-294de655c946","block_type":"box","text":"BlackRock owns or has an ownership interest in cer tain trading, por tfolio management, operations and/or","page_number":143,"box":{"x":102,"y":551,"width":757,"height":11}},{"id":"2aa45755-565b-4d48-946d-5f94c6ed30db","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":143,"box":{"x":70,"y":566,"width":826,"height":11}},{"id":"962880c6-db50-4288-8b6c-0bc47ebe58b4","block_type":"box","text":"in connection with the provision of services to accounts managed by BlackRock and funds managed and sponsored","page_number":143,"box":{"x":70,"y":581,"width":822,"height":12}},{"id":"2099a5e1-28ad-4c39-88a7-5e34be8e6d5c","block_type":"box","text":"by BlackRock, including the Funds, that engage the service provider (typically the custodian). A Fund’s service","page_number":143,"box":{"x":69,"y":597,"width":782,"height":11}},{"id":"8f4b8a12-cc92-4baf-86ed-ecb3e09e91d2","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":143,"box":{"x":70,"y":612,"width":835,"height":11}},{"id":"482b730f-7b1d-44a2-8a67-1154c19587d1","block_type":"box","text":"use of these systems may enhance the profitability of BlackRock.","page_number":143,"box":{"x":69,"y":627,"width":465,"height":11}},{"id":"5dfae009-2c01-42d6-90a4-13eeff18d3f6","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":143,"box":{"x":102,"y":649,"width":804,"height":12}},{"id":"fb09e952-38c0-464f-a928-1c576bc8d63e","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":143,"box":{"x":69,"y":664,"width":840,"height":12}},{"id":"8771da91-6ea3-4317-adab-ba79996d5970","block_type":"box","text":"provider.","page_number":143,"box":{"x":70,"y":680,"width":58,"height":11}},{"id":"9affd27e-6722-41ca-8b30-ba1c92e18937","block_type":"box","text":"In recognition of a BlackRock client’s overall relationship with BlackRock, BlackRock may offer special pricing","page_number":143,"box":{"x":102,"y":702,"width":778,"height":12}},{"id":"d1c621a3-5638-450a-91c9-c6257a776bfb","block_type":"box","text":"arrangements for cer tain services provided by BlackRock. Any such special pricing arrangements will not affect Fund","page_number":143,"box":{"x":69,"y":717,"width":831,"height":12}},{"id":"214d268b-e72e-430a-be7a-de2fd9fab8dd","block_type":"box","text":"fees and expenses applicable to such client’s investment in a Fund.","page_number":143,"box":{"x":68,"y":732,"width":485,"height":11}},{"id":"cf4e8df1-5bd2-47f8-96cb-62930b59a1a6","block_type":"box","text":"Present and future activities of BlackRock and its directors, officers and employees, in addition to those","page_number":143,"box":{"x":102,"y":755,"width":742,"height":11}},{"id":"c3d9df5a-3af7-4671-a80c-ee6cfd662cea","block_type":"box","text":"described in this section, may give rise to additional conflicts of interest.","page_number":143,"box":{"x":69,"y":770,"width":517,"height":12}},{"id":"c7020c33-fd62-453f-bd2c-e7b2c2af6870","block_type":"box","text":"PURCHASE OF SHARES","page_number":143,"box":{"x":395,"y":800,"width":188,"height":10}},{"id":"f0b44071-38a4-4435-a76b-b244e562558e","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":143,"box":{"x":102,"y":823,"width":800,"height":11}},{"id":"d2496376-ff9e-44cd-8238-288b729d57c9","block_type":"box","text":"under the Investment Company Act. Investor A Shares are sold to investors choosing the initial sales charge","page_number":143,"box":{"x":69,"y":838,"width":771,"height":11}},{"id":"8dab71cc-f721-4c83-a042-a13f3e9a906b","block_type":"box","text":"alternative, except that Investor A Shares of Index Funds (defined below) and BlackRock Shor t Obligations Fund are","page_number":143,"box":{"x":69,"y":853,"width":822,"height":11}},{"id":"2ac2c654-750c-4062-8701-58eec0526dc7","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":143,"box":{"x":68,"y":868,"width":809,"height":11}},{"id":"c04eeec9-c93e-470c-bee8-d1cae49c0e8b","block_type":"box","text":"sales charge alternative. Investor P Shares are available only to cer tain investors purchasing shares of Funds","page_number":143,"box":{"x":69,"y":883,"width":781,"height":11}},{"id":"954852c6-0aa3-4092-9d68-ce5ac2c65c65","block_type":"box","text":"through registered representatives of an insurance company’s broker-dealer that has entered into an agreement with","page_number":143,"box":{"x":68,"y":898,"width":833,"height":11}},{"id":"72e5d21b-f71c-4ced-8f86-ec3bc63e58c9","block_type":"box","text":"II-97","page_number":143,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c640bbe6-24ac-4be8-8b2b-4e8ac83877ae","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":143,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ffee1420-9107-4273-b986-399ddaa51457","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":144,"box":{"x":68,"y":45,"width":833,"height":11}},{"id":"30115c09-6cd3-44ea-bfe1-b0e952c0e60d","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":144,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"ceced18c-f5af-4a26-9b7d-994c1311221b","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":144,"box":{"x":69,"y":75,"width":804,"height":11}},{"id":"7c163287-0b25-4a54-bb7f-79bddd29782d","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":144,"box":{"x":70,"y":90,"width":816,"height":11}},{"id":"be95d7d5-717a-40f7-8af3-cdf6cb060c79","block_type":"box","text":"financial intermediary that meets an initial investment minimum of $2 billion. In addition, cer tain Funds offer Service","page_number":144,"box":{"x":68,"y":104,"width":835,"height":12}},{"id":"3d36de88-c628-42df-8c90-bab5cd5fd759","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":144,"box":{"x":69,"y":120,"width":834,"height":12}},{"id":"79ae83a0-4ee2-4cae-b97a-7d02ba942499","block_type":"box","text":"appropriate Prospectus for your Fund to determine which classes are offered by your Fund and under what","page_number":144,"box":{"x":69,"y":135,"width":757,"height":11}},{"id":"710bc45a-3def-49b2-a8f0-d2ff8e3c7c6b","block_type":"box","text":"circumstances. Each class has different exchange privileges. See “Shareholder Services — Exchange Privilege.”","page_number":144,"box":{"x":69,"y":150,"width":802,"height":12}},{"id":"bf16c0e4-6cf5-42ee-a8b5-d8afe24ab5a9","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":144,"box":{"x":101,"y":173,"width":799,"height":11}},{"id":"a44bc531-2230-4405-aba5-e26296217916","block_type":"box","text":"the purchase order by a dealer or other financial intermediary (“Selling Dealer”) that has been authorized by the","page_number":144,"box":{"x":68,"y":188,"width":798,"height":12}},{"id":"ad71641f-7d22-476c-a34e-fc8fbcd9d7e4","block_type":"box","text":"Distributor by contract to accept such orders. In addition, with respect to the affiliated underlying funds in which","page_number":144,"box":{"x":70,"y":203,"width":795,"height":12}},{"id":"a6e234ad-0bf1-4884-af40-2d64a537ded7","block_type":"box","text":"target date funds advised by BlackRock or its affiliates (“BlackRock Target Date Funds”) invest, the applicable","page_number":144,"box":{"x":68,"y":218,"width":786,"height":12}},{"id":"d521740c-2d15-4ae3-b090-64c446937126","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":144,"box":{"x":69,"y":234,"width":839,"height":11}},{"id":"9a654a77-00d2-4168-8f47-e9e9014633e6","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":144,"box":{"x":69,"y":249,"width":795,"height":11}},{"id":"0b772bc6-2d42-4423-bcac-3d49c1cc7c88","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":144,"box":{"x":68,"y":264,"width":819,"height":11}},{"id":"80a4b2b9-bae2-49dd-b017-11aee1ca9b21","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":144,"box":{"x":69,"y":279,"width":808,"height":11}},{"id":"07777a31-f2d8-4378-8732-3be741fa5d5d","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":144,"box":{"x":69,"y":294,"width":803,"height":11}},{"id":"0bf0ef18-0b4a-4f6a-81da-e508041d47e3","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":144,"box":{"x":70,"y":309,"width":812,"height":11}},{"id":"a01873bb-3e97-4145-bd32-c29bd81fcb83","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":144,"box":{"x":68,"y":324,"width":828,"height":11}},{"id":"b8868e1a-2862-4cf5-a7c1-1c66b7d12210","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":144,"box":{"x":68,"y":339,"width":788,"height":12}},{"id":"52388ced-8d73-4d5b-b1fc-f385da349a3d","block_type":"box","text":"deemed received on the next business day. It is the responsibility of brokers to transmit purchase orders and","page_number":144,"box":{"x":69,"y":355,"width":779,"height":11}},{"id":"97cf7b91-895a-4ed3-9305-7608e462786d","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":144,"box":{"x":70,"y":370,"width":830,"height":11}},{"id":"feefd9cf-7bcf-424f-915c-fc6ef27d15c3","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":144,"box":{"x":69,"y":385,"width":828,"height":11}},{"id":"91bc32b3-e7c5-496f-b696-88fe75c6aa30","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":144,"box":{"x":68,"y":399,"width":762,"height":12}},{"id":"2d474fd1-fdc5-4bee-912b-324b652c2f1c","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":144,"box":{"x":101,"y":423,"width":768,"height":11}},{"id":"77f44d96-2407-4502-a964-2c59caa5fd88","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":144,"box":{"x":69,"y":438,"width":819,"height":11}},{"id":"1b8ce4c1-69d1-4966-8d14-446eb5b771a7","block_type":"box","text":"affiliates is $100, unless payment is made through a payroll deduction program in which case the minimum","page_number":144,"box":{"x":69,"y":452,"width":769,"height":12}},{"id":"86dd5d55-ed34-4052-9197-417f40ee2e38","block_type":"box","text":"investment is $25.","page_number":144,"box":{"x":70,"y":467,"width":132,"height":11}},{"id":"9b653bf2-e6a0-4bd1-8ffb-2b6b76651ce2","block_type":"box","text":"Each Fund has lower investment minimums for other categories of shareholders eligible to purchase Institutional","page_number":144,"box":{"x":102,"y":491,"width":802,"height":11}},{"id":"49926163-0e4d-404a-a972-7df0a5193f00","block_type":"box","text":"Shares, including selected fee-based programs. Each Fund may permit a lower initial investment for cer tain investors","page_number":144,"box":{"x":69,"y":506,"width":833,"height":11}},{"id":"934803f8-09f7-4b07-8f28-738afa4893c9","block_type":"box","text":"if their purchase, combined with purchases by other investors received together by the Fund, meets the minimum","page_number":144,"box":{"x":70,"y":521,"width":806,"height":11}},{"id":"e7189323-95b7-41c4-96e9-dcac5669df4b","block_type":"box","text":"investment requirement. Each Fund may reject any purchase order, modify or waive the minimum initial or","page_number":144,"box":{"x":70,"y":536,"width":751,"height":11}},{"id":"ec6565e4-e39f-40e6-aef0-5ef5b3fa3df6","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":144,"box":{"x":69,"y":551,"width":826,"height":11}},{"id":"5d448c11-48cf-4b20-95ed-cb866083b51e","block_type":"box","text":"Financial intermediaries may, in connection with a change in account type or otherwise in accordance with a","page_number":144,"box":{"x":102,"y":574,"width":768,"height":11}},{"id":"4a8bf827-aa3c-4956-8d52-c53b007f7349","block_type":"box","text":"financial intermediary’s policies and procedures, exchange shares of a Fund from one class of shares to another","page_number":144,"box":{"x":68,"y":589,"width":807,"height":11}},{"id":"bf34fe2f-c0d9-4e3b-97ca-b575de36fc0c","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":144,"box":{"x":69,"y":604,"width":836,"height":11}},{"id":"0165b93a-d2ea-4a0e-ad9d-a5763bdd6266","block_type":"box","text":"charge (“CDSC”) and that shareholders meet eligibility requirements of the new share class. Please speak to your","page_number":144,"box":{"x":69,"y":619,"width":814,"height":11}},{"id":"516489ad-5f48-4aab-a5ef-2f42e647c0ce","block_type":"box","text":"financial intermediary for information about specific policies and procedures applicable to your account.","page_number":144,"box":{"x":68,"y":634,"width":740,"height":11}},{"id":"9d744dbb-1816-4708-86b0-6adbdbe4f66d","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":144,"box":{"x":102,"y":657,"width":795,"height":11}},{"id":"aa1274d3-989f-48dc-93c5-b6c5f377185b","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":144,"box":{"x":70,"y":672,"width":813,"height":11}},{"id":"8350746a-2714-4c05-b100-c093e1956385","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":144,"box":{"x":68,"y":687,"width":827,"height":11}},{"id":"023dcea7-50da-4e73-afa5-5be33529312b","block_type":"box","text":"financial intermediaries are permitted to withhold placing orders to benefit themselves by a price change.","page_number":144,"box":{"x":68,"y":702,"width":750,"height":12}},{"id":"b77610e5-65a4-446c-bd0f-9c7cef2d0870","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":144,"box":{"x":101,"y":725,"width":776,"height":11}},{"id":"ea515a95-6ddd-4857-973a-495f7f0062e1","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":144,"box":{"x":69,"y":740,"width":831,"height":11}},{"id":"a7dde27a-c4c9-4a3b-a86b-eb41e6ab96b2","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":144,"box":{"x":69,"y":755,"width":822,"height":11}},{"id":"1d258031-06ac-4eba-8054-018dd86e1d5d","block_type":"box","text":"single fiduciary account although more than one beneficiary may be involved. The term “purchase” also includes","page_number":144,"box":{"x":69,"y":770,"width":802,"height":12}},{"id":"60d5f216-8623-4754-b511-b2e2ea6aa447","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":144,"box":{"x":70,"y":785,"width":839,"height":12}},{"id":"3fbd0e92-7f6b-4cf8-b783-a4a20dc6d090","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":144,"box":{"x":69,"y":801,"width":819,"height":11}},{"id":"2181462c-977b-488e-94fd-c8648e58138b","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":144,"box":{"x":68,"y":816,"width":827,"height":11}},{"id":"838d233e-e611-46a0-8d49-b2c946988314","block_type":"box","text":"group of individuals whose sole organizational nexus is that its par ticipants are credit cardholders of a company,","page_number":144,"box":{"x":68,"y":831,"width":803,"height":11}},{"id":"544e3290-798a-4f1a-9721-3dba046d1b34","block_type":"box","text":"policyholders of an insurance company, customers of either a bank or broker-dealer or clients of an investment","page_number":144,"box":{"x":70,"y":846,"width":788,"height":11}},{"id":"cb38aa23-a431-472b-84cf-b6c7c6fb7526","block_type":"box","text":"adviser.","page_number":144,"box":{"x":69,"y":861,"width":53,"height":9}},{"id":"39e44e4d-8d20-410a-be2a-f2d00ab36e84","block_type":"box","text":"With cer tain limited exceptions, the Funds are generally available only to investors residing in the United States","page_number":144,"box":{"x":101,"y":884,"width":795,"height":11}},{"id":"b37c3fc9-d8a3-44f2-9f7d-6472bb2f1191","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":144,"box":{"x":69,"y":899,"width":821,"height":11}},{"id":"a8177008-bda8-4f85-876a-09d1f6da9806","block_type":"box","text":"II-98","page_number":144,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"71fe15ba-4a2d-4bca-84b6-a7ba0e563b1a","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":144,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2d3cea8c-76f6-486e-89e0-fc41736e4a20","block_type":"box","text":"additional investments (including by way of exchange from another Fund) into existing accounts, a Fund generally","page_number":145,"box":{"x":69,"y":45,"width":803,"height":11}},{"id":"832d63db-7da4-469a-9670-ccff7d023e45","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":145,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"08b1f03f-ba97-4e65-9859-0139fb054c8c","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":145,"box":{"x":68,"y":75,"width":747,"height":11}},{"id":"d1eeda6f-0432-4a84-8016-7e16793e8dab","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":145,"box":{"x":70,"y":90,"width":809,"height":11}},{"id":"f973be45-28bf-4760-83b7-34897355428a","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":145,"box":{"x":69,"y":105,"width":819,"height":11}},{"id":"ecdae187-ebc1-41ce-aefe-d3b649c47648","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":145,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"f58fb270-2bb6-4219-86bd-83c318f31678","block_type":"box","text":"also be restricted from making additional investments.","page_number":145,"box":{"x":69,"y":135,"width":388,"height":12}},{"id":"75070d5d-e688-4eda-8735-6f48ccc8da4c","block_type":"box","text":"In-Kind Purchases","page_number":145,"box":{"x":102,"y":158,"width":127,"height":9}},{"id":"b54a2144-cd4b-469b-aff7-b444873fc6d5","block_type":"box","text":". Payment for shares of a Fund may, at the discretion of BlackRock, be made in the form of","page_number":145,"box":{"x":230,"y":158,"width":649,"height":11}},{"id":"32fba913-6155-4222-955d-4b88fe009e4d","block_type":"box","text":"securities that are permissible investments for the Fund and that meet the investment objective, policies and","page_number":145,"box":{"x":69,"y":173,"width":779,"height":11}},{"id":"4a68d447-d49b-40d9-9ab1-083ac289b1c2","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":145,"box":{"x":70,"y":188,"width":820,"height":11}},{"id":"abc6f7d8-c7c9-4c79-bd05-c6fec6d73b0e","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":145,"box":{"x":69,"y":203,"width":827,"height":12}},{"id":"fa9fde8a-9475-4d1c-8511-8e1d61ee84fa","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":145,"box":{"x":69,"y":218,"width":831,"height":12}},{"id":"52ddaab5-9316-48d8-b8f9-86c86b431d44","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":145,"box":{"x":69,"y":234,"width":817,"height":11}},{"id":"d7369ef5-4bbc-4252-99be-b751d723a42f","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":145,"box":{"x":68,"y":249,"width":837,"height":11}},{"id":"f4b7397f-d6e4-4436-9eb5-021f03ef749c","block_type":"box","text":"securities. All dividends, interest, subscription or other rights per taining to such securities shall become the proper ty","page_number":145,"box":{"x":69,"y":264,"width":835,"height":11}},{"id":"5f056b41-3d27-4ae6-ae94-163a24df6b7c","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":145,"box":{"x":69,"y":279,"width":795,"height":11}},{"id":"ba22bc96-244e-45ad-863b-bcd74f96ae47","block_type":"box","text":"receipt from the issuer. Shares purchased in exchange for securities generally cannot be redeemed until the transfer","page_number":145,"box":{"x":69,"y":294,"width":833,"height":11}},{"id":"8028f9a0-5e55-4598-b3ea-ebe85f8ab809","block_type":"box","text":"has settled.","page_number":145,"box":{"x":69,"y":309,"width":83,"height":9}},{"id":"4822b6d9-e751-46bb-9f08-ad0d6b66d799","block_type":"box","text":"Institutional Shares","page_number":145,"box":{"x":69,"y":340,"width":142,"height":8}},{"id":"e1dccb17-39ff-4556-b631-85635e8f1311","block_type":"box","text":"Institutional Shares may be purchased at NAV without a sales charge. Only cer tain investors are eligible to","page_number":145,"box":{"x":102,"y":362,"width":759,"height":11}},{"id":"2b45bc76-b3a6-45dd-84f0-3e141b2713c3","block_type":"box","text":"purchase Institutional Shares. Investors who are eligible to purchase Institutional Shares should purchase","page_number":145,"box":{"x":70,"y":377,"width":756,"height":12}},{"id":"c0682d27-4896-4e46-81b8-b253d6798f41","block_type":"box","text":"Institutional Shares because they are not subject to any sales charge and have lower ongoing expenses than","page_number":145,"box":{"x":70,"y":392,"width":775,"height":12}},{"id":"a8edb238-e44d-4dfd-a04c-c370c55ccfe8","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":145,"box":{"x":70,"y":407,"width":839,"height":12}},{"id":"2075c2a1-4d13-474d-8e63-a68692110c81","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":145,"box":{"x":69,"y":423,"width":807,"height":11}},{"id":"87293747-4e33-442c-b96f-9b3643ce4005","block_type":"box","text":"sale of shares of any Fund at any time.","page_number":145,"box":{"x":69,"y":438,"width":276,"height":11}},{"id":"3f1f19e9-3566-4c35-98b0-6c919f28d96b","block_type":"box","text":"Eligible Institutional Share Investors.","page_number":145,"box":{"x":102,"y":460,"width":259,"height":12}},{"id":"7c23e77c-2803-4967-b9ff-f8812629e905","block_type":"box","text":"Institutional Shares of the Funds may be purchased by customers of broker","page_number":145,"box":{"x":369,"y":460,"width":540,"height":12}},{"id":"7b371a7e-b0c2-4f93-a7c0-49f185185e3e","block_type":"box","text":"dealers and agents that have established a servicing relationship with the Fund on behalf of their customers. These","page_number":145,"box":{"x":69,"y":475,"width":826,"height":12}},{"id":"bd44bc3e-4840-43aa-94d2-36014c0f4178","block_type":"box","text":"broker-dealers and agents may impose additional or different conditions on the purchase or redemption of Fund","page_number":145,"box":{"x":69,"y":491,"width":796,"height":11}},{"id":"bc53caae-86b8-47d8-bc10-bd740eb3041f","block_type":"box","text":"shares by their customers and may charge their customers transaction, account or other fees on the purchase and","page_number":145,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"80ce3734-5f18-4a3d-966b-de6d2e4a63fe","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":145,"box":{"x":69,"y":521,"width":840,"height":11}},{"id":"ab97bf4f-d7ee-4d66-bc70-583e768c3095","block_type":"box","text":"any such fees and information regarding any additional or different conditions regarding purchases and redemptions.","page_number":145,"box":{"x":69,"y":536,"width":833,"height":11}},{"id":"644fbe73-e959-4de2-8fd1-6606c8595148","block_type":"box","text":"Shareholders who are customers of such broker-dealers or agents should consult them for information regarding","page_number":145,"box":{"x":69,"y":551,"width":802,"height":11}},{"id":"b7ecc8af-ec14-451d-b6f5-7d7b169328db","block_type":"box","text":"these fees and conditions.","page_number":145,"box":{"x":68,"y":566,"width":189,"height":9}},{"id":"37637598-3193-47a0-8731-fafadfcab564","block_type":"box","text":"Payment for Institutional Shares must normally be made in Federal funds or other funds immediately available by","page_number":145,"box":{"x":102,"y":589,"width":805,"height":11}},{"id":"9ed177e8-7c0b-4ce3-aac5-7daeab07891b","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":145,"box":{"x":69,"y":604,"width":825,"height":11}},{"id":"777a3f64-841c-4ce0-a179-b7507d5eb947","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":145,"box":{"x":69,"y":619,"width":817,"height":11}},{"id":"0c58850f-4bbf-43b5-98f4-fff0beb5c7b2","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":145,"box":{"x":70,"y":634,"width":831,"height":12}},{"id":"9fc615e9-7a5d-4521-9959-bbff87c4f8e5","block_type":"box","text":"incurred by the Fund.","page_number":145,"box":{"x":70,"y":650,"width":147,"height":11}},{"id":"d2ed2264-a812-4036-ae28-55c4aa15cecf","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":145,"box":{"x":102,"y":672,"width":774,"height":11}},{"id":"c87b40a5-cc87-422f-90e4-cbdc43eecd78","block_type":"box","text":"following investors may purchase Institutional Shares: employees, officers and directors/trustees of BlackRock, Inc.,","page_number":145,"box":{"x":68,"y":687,"width":834,"height":11}},{"id":"8c6c28f6-d86b-41f2-b821-10a940be7c0b","block_type":"box","text":"BlackRock Funds, Bank of America Corporation (“BofA Corp.”), Barclays PLC or their respective affiliates and","page_number":145,"box":{"x":70,"y":702,"width":773,"height":11}},{"id":"8066dc91-5f08-465e-8783-cd7f50806c85","block_type":"box","text":"immediate family members of such persons, individuals and “Institutional Investors” with a minimum initial","page_number":145,"box":{"x":70,"y":717,"width":762,"height":12}},{"id":"2d1e30d4-d616-46b5-87ed-500b94755d73","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":145,"box":{"x":70,"y":732,"width":821,"height":12}},{"id":"39b181c2-50b4-497f-b861-b358bb479591","block_type":"box","text":"an agreement with the Distributor to purchase such shares (“Institutional Investors” include, but are not limited to,","page_number":145,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"5c77fd4f-56b4-4c60-a3b4-84fb71fa2a0f","block_type":"box","text":"endowments, foundations, family offices, local, city, and state governmental institutions, corporations, and insurance","page_number":145,"box":{"x":69,"y":763,"width":836,"height":11}},{"id":"85207a56-9777-4269-a62d-9ed6e18034b5","block_type":"box","text":"company separate accounts); employer-sponsored retirement plans (which, for this purpose, do not include SEP IRAs,","page_number":145,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"111ac07a-7f8b-46c3-bbca-0e2d9cd038a0","block_type":"box","text":"SIMPLE IRAs or SARSEPs), state sponsored 529 college savings plans, collective trust funds, investment companies","page_number":145,"box":{"x":69,"y":793,"width":832,"height":11}},{"id":"e12cd495-747a-484b-bc16-cd0d56bbf6f1","block_type":"box","text":"or other pooled investment vehicles, unaffiliated thrifts and unaffiliated banks and trust companies, each of which","page_number":145,"box":{"x":69,"y":808,"width":815,"height":11}},{"id":"ec3a6d09-13f8-4264-908d-43471e8a8499","block_type":"box","text":"may purchase shares of the Fund through a financial intermediary that has entered into an agreement with the","page_number":145,"box":{"x":69,"y":823,"width":789,"height":12}},{"id":"7eaa489b-0cfe-4b02-89c3-4aa458caf513","block_type":"box","text":"Distributor to purchase such shares; clients investing through a self-directed IRA brokerage account program","page_number":145,"box":{"x":70,"y":838,"width":772,"height":12}},{"id":"d9a57d94-57c8-47ad-a83a-28ad2bca77e1","block_type":"box","text":"sponsored by a retirement plan record-keeper, provided that such program offers only mutual fund options and that","page_number":145,"box":{"x":69,"y":853,"width":822,"height":12}},{"id":"77c59be8-77c2-473f-99bc-061789cfffd5","block_type":"box","text":"the program maintains an account with the Fund on an omnibus basis; clients of financial intermediaries that:","page_number":145,"box":{"x":68,"y":869,"width":783,"height":11}},{"id":"84c8285a-1e11-4373-b34a-fe293def601d","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":145,"box":{"x":69,"y":884,"width":785,"height":11}},{"id":"171b756c-8389-42ce-9d1f-8774dfe3acf0","block_type":"box","text":"agreement with the Distributor to offer Institutional Shares through a no-load program or investment platform, in each","page_number":145,"box":{"x":69,"y":899,"width":838,"height":11}},{"id":"c21e39ab-c52c-4b5b-9c80-1164f528f6d2","block_type":"box","text":"II-99","page_number":145,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b7d9093b-d016-455b-a1d6-d740f56cd9c3","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":145,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1aaae684-3938-4cc6-a930-8bb1a9dd4335","block_type":"box","text":"case, with no minimum initial investment; clients investing through financial intermediaries that have entered into an","page_number":146,"box":{"x":69,"y":45,"width":831,"height":11}},{"id":"239bae06-7626-4a0b-96cc-9ec4cf1b8f1e","block_type":"box","text":"agreement with the Distributor to offer such shares on a platform that charges a transaction based sales","page_number":146,"box":{"x":69,"y":60,"width":751,"height":11}},{"id":"87556dc9-1308-426f-bc04-b80e9cb4de18","block_type":"box","text":"commission outside of the Fund, with a minimum initial investment of $1,000; tax-qualified accounts for insurance","page_number":146,"box":{"x":69,"y":74,"width":817,"height":12}},{"id":"6f51ea80-ed9f-4cbb-bdd0-ab8ac8f19b92","block_type":"box","text":"agents that are registered representatives of an insurance company’s broker-dealer that has entered into an","page_number":146,"box":{"x":69,"y":90,"width":773,"height":11}},{"id":"a050662d-a0c6-499e-a3f5-67aeed2f4cf6","block_type":"box","text":"agreement with the Distributor to offer Institutional Shares, and the family members of such persons, with a","page_number":146,"box":{"x":69,"y":105,"width":771,"height":11}},{"id":"6cfc1ed1-9158-48a6-9dc1-361520845d09","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":146,"box":{"x":69,"y":120,"width":822,"height":11}},{"id":"9756aad2-1ad0-4ddd-a230-9e9bf9eb4756","block_type":"box","text":"they (i) act in a fiduciary capacity (excluding par ticipant directed employee benefit plans), (ii) otherwise have","page_number":146,"box":{"x":68,"y":135,"width":771,"height":12}},{"id":"beb87c38-d655-4a13-b9b1-067cb716ad5f","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":146,"box":{"x":70,"y":150,"width":801,"height":11}},{"id":"039b9bfb-16de-421d-9544-6954c9887970","block_type":"box","text":"sponsored unit investment trusts (UITs) who reinvest dividends received from such UITs in shares of a Fund.","page_number":146,"box":{"x":69,"y":166,"width":770,"height":11}},{"id":"7599795a-f979-47fb-8657-a22dd75b6ac6","block_type":"box","text":"Purchase Privileges of Cer tain Persons.","page_number":146,"box":{"x":102,"y":188,"width":280,"height":12}},{"id":"701b34e8-f37e-41fa-b320-6cc9aec6ea0a","block_type":"box","text":"Employees, officers, directors/trustees of BlackRock, Inc., BlackRock","page_number":146,"box":{"x":389,"y":188,"width":496,"height":11}},{"id":"6fe8f85c-61a6-4754-b5a4-216fe18d5955","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":146,"box":{"x":70,"y":203,"width":812,"height":12}},{"id":"17d418d2-26f8-4214-a2e6-9748fa9e40dd","block_type":"box","text":"persons may purchase Institutional Shares at lower investment minimums than stated in each Fund’s Prospectus. A","page_number":146,"box":{"x":70,"y":219,"width":828,"height":11}},{"id":"b14ec22d-b589-4a42-a688-e1863abc3054","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":146,"box":{"x":70,"y":234,"width":838,"height":11}},{"id":"0c022ea6-10ae-4d59-b49b-dec36d6239b1","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":146,"box":{"x":68,"y":249,"width":826,"height":11}},{"id":"9dd02568-37ce-4ff7-9af9-bf6ee8afc3c4","block_type":"box","text":"satisfy the Fund’s suitability standards.","page_number":146,"box":{"x":69,"y":264,"width":279,"height":11}},{"id":"d785cf3e-fae0-4b0d-97e3-612caec224e9","block_type":"box","text":"Initial Sales Charge Alternative — Investor A Shares","page_number":146,"box":{"x":69,"y":294,"width":382,"height":11}},{"id":"7f7b1e97-5f53-4261-b9a0-deee655b37ac","block_type":"box","text":"Investors who prefer an initial sales charge alternative may elect to purchase Investor A Shares. Investor A1","page_number":146,"box":{"x":102,"y":317,"width":770,"height":11}},{"id":"a90eba8e-86b9-4614-bc7d-ff0641af940e","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":146,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"1a464f9e-8d63-4adb-8c64-97bc5983854d","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":146,"box":{"x":69,"y":347,"width":819,"height":11}},{"id":"79471bde-6c24-46e4-96d5-d19d881e7be0","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":146,"box":{"x":68,"y":362,"width":840,"height":11}},{"id":"3c107075-1c57-47db-a78d-68874b57a6c3","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":146,"box":{"x":69,"y":377,"width":815,"height":11}},{"id":"afaccd26-c16d-476c-bcc6-60c55b79dca0","block_type":"box","text":"sometimes referred to herein as “front-end load shares.” Investor A Shares of Index Funds (defined below) and","page_number":146,"box":{"x":69,"y":392,"width":791,"height":11}},{"id":"eab225c9-4ef9-4ef1-a7d7-b2cc460e8ea5","block_type":"box","text":"BlackRock Shor t Obligations Fund generally are not subject to an initial sales charge or front-end load.","page_number":146,"box":{"x":70,"y":407,"width":727,"height":12}},{"id":"3d861b1f-1fe8-410f-944f-803f3938703e","block_type":"box","text":"Investors qualifying for significantly reduced initial sales charges may find the initial sales charge alternative","page_number":146,"box":{"x":102,"y":430,"width":770,"height":11}},{"id":"9fe83c09-39a5-4399-8c09-52934cc1bdf0","block_type":"box","text":"par ticularly attractive because similar sales charge reductions are not available with respect to the deferred sales","page_number":146,"box":{"x":70,"y":445,"width":812,"height":12}},{"id":"6c912ad4-6657-4286-a0b8-8cc3d7fbf69c","block_type":"box","text":"charges imposed in connection with investments in Investor C Shares (sometimes referred to herein as “CDSC","page_number":146,"box":{"x":69,"y":460,"width":791,"height":12}},{"id":"8f5c496e-77ec-418f-9660-7b77d8d82a36","block_type":"box","text":"shares”). Investors who do not qualify for reduced initial sales charges and who expect to maintain their investment","page_number":146,"box":{"x":69,"y":475,"width":826,"height":12}},{"id":"94eeb6ae-b005-48ee-b028-961a2e8854cd","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":146,"box":{"x":68,"y":491,"width":808,"height":11}},{"id":"fff1c499-58d0-4847-9caa-292a93b32341","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":146,"box":{"x":69,"y":506,"width":834,"height":11}},{"id":"674e3be7-5243-41ff-8826-926e43bfcd0e","block_type":"box","text":"service fee. Although some investors who previously purchased Institutional Shares may no longer be eligible to","page_number":146,"box":{"x":69,"y":521,"width":798,"height":11}},{"id":"b09813e3-3c7d-4b70-be1f-ad9aa2e966be","block_type":"box","text":"purchase Institutional Shares of other Funds, those previously purchased Institutional Shares, together with all","page_number":146,"box":{"x":70,"y":536,"width":789,"height":11}},{"id":"5d8caaa9-a15b-44e1-a67b-41c9f3fecf4f","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":146,"box":{"x":70,"y":551,"width":805,"height":11}},{"id":"727e0156-f6ff-4601-a9d9-065998a12126","block_type":"box","text":"investor for a reduced initial sales charge on new initial sales charge purchases. In addition, the ongoing CDSC","page_number":146,"box":{"x":70,"y":566,"width":792,"height":11}},{"id":"5b044949-57d5-4c61-b93b-aec56ba44f02","block_type":"box","text":"shares service and distribution fees will cause CDSC shares to have higher expense ratios, pay lower dividends and","page_number":146,"box":{"x":69,"y":581,"width":826,"height":12}},{"id":"0d78ca43-a9d7-40fd-9bd1-c5567a9cbf54","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":146,"box":{"x":69,"y":596,"width":802,"height":12}},{"id":"0acfe6b2-3b6b-46be-af54-e282ab72722f","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":146,"box":{"x":69,"y":612,"width":834,"height":11}},{"id":"8738a81c-61cd-427b-a46c-f9193f8bbf9a","block_type":"box","text":"have a lower total return than Institutional Shares.","page_number":146,"box":{"x":69,"y":627,"width":358,"height":9}},{"id":"ad589db2-222c-412f-841a-2214862f4342","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":146,"box":{"x":102,"y":649,"width":734,"height":12}},{"id":"1b594ccb-fb44-41b2-b4cc-f2017c4a7477","block_type":"box","text":"information about amounts paid to the Distributor in connection with Investor A and Investor A1 Shares for the","page_number":146,"box":{"x":70,"y":664,"width":785,"height":11}},{"id":"7213908a-e24f-462a-b177-1ce484140254","block_type":"box","text":"periods indicated.","page_number":146,"box":{"x":70,"y":680,"width":124,"height":11}},{"id":"ebe064a3-1bb9-4b99-8388-0a6ec874d9b9","block_type":"box","text":"The Distributor may reallow discounts to selected securities dealers and other financial intermediaries and retain","page_number":146,"box":{"x":101,"y":702,"width":806,"height":11}},{"id":"8a1cd00b-c717-4bbc-82dc-59216f41c2d8","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":146,"box":{"x":68,"y":718,"width":830,"height":11}},{"id":"a12de9b7-0e83-4b42-b307-e542886d9dae","block_type":"box","text":"securities dealers and other financial intermediaries selling front-end load shares of a Fund will receive a concession","page_number":146,"box":{"x":69,"y":732,"width":832,"height":12}},{"id":"031c4d9a-7bd2-4058-a820-49ef75e20955","block_type":"box","text":"equal to most of the sales charge, they may be deemed to be underwriters under the Securities Act.","page_number":146,"box":{"x":69,"y":748,"width":714,"height":11}},{"id":"da2f4132-fc70-48e3-a136-aa7c1ff56339","block_type":"box","text":"Initial Sales Charge — Investor P Shares","page_number":146,"box":{"x":69,"y":778,"width":297,"height":11}},{"id":"5e764943-a023-4f2d-9b0b-7c9a3fa6e205","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":146,"box":{"x":102,"y":801,"width":761,"height":11}},{"id":"8f3f49bf-2706-47e9-ab2a-e1c55a599fc1","block_type":"box","text":"available for purchase only through registered representatives of an insurance company’s broker-dealer that has","page_number":146,"box":{"x":69,"y":816,"width":800,"height":11}},{"id":"c054b9b7-45cc-48a2-88b9-1b9c66ce5767","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":146,"box":{"x":69,"y":831,"width":812,"height":11}},{"id":"d423fdcd-897d-43ee-b3dd-905d5d51a45f","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":146,"box":{"x":69,"y":846,"width":813,"height":11}},{"id":"49b94b8d-e8a1-4fdc-8bda-d507b556df69","block_type":"box","text":"dividends and have a lower total return than Investor A Shares of the same Fund.","page_number":146,"box":{"x":69,"y":861,"width":578,"height":9}},{"id":"b40deb7e-c7de-474a-a97d-e8ca1bdd0b24","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":146,"box":{"x":102,"y":884,"width":734,"height":11}},{"id":"e480f8aa-1e63-407c-a6cd-a91763c0d816","block_type":"box","text":"information about amounts paid to the Distributor in connection with Investor P Shares for the periods indicated.","page_number":146,"box":{"x":70,"y":899,"width":800,"height":11}},{"id":"be0e7666-bf18-45b5-8034-e0244decd0a7","block_type":"box","text":"II-100","page_number":146,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"4723d4b5-7e2c-43a1-a8e1-3ef571e8d368","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":146,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"920d9b88-68b0-46e7-9a98-9f13cf984e5e","block_type":"box","text":"The Distributor may reallow discounts to selected securities dealers and other financial intermediaries and retain","page_number":147,"box":{"x":101,"y":45,"width":806,"height":11}},{"id":"85c3c85e-aac6-4e41-87f7-991dd6aebd55","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":147,"box":{"x":68,"y":60,"width":830,"height":11}},{"id":"73443263-953e-435e-8406-978f13e297e4","block_type":"box","text":"securities dealers and other financial intermediaries selling front-end load shares of a Fund will receive a concession","page_number":147,"box":{"x":69,"y":75,"width":832,"height":11}},{"id":"7ffff9a8-6a15-4837-a68d-f67d03e106b9","block_type":"box","text":"equal to most of the sales charge, they may be deemed to be underwriters under the Securities Act.","page_number":147,"box":{"x":69,"y":90,"width":714,"height":11}},{"id":"3d6ac0d1-3937-4f53-b5e2-3c18212d13c7","block_type":"box","text":"Reduced Initial Sales Charges","page_number":147,"box":{"x":69,"y":120,"width":219,"height":11}},{"id":"3324084d-d9d7-42a5-9ec1-26b5286ecb2b","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":147,"box":{"x":102,"y":143,"width":782,"height":11}},{"id":"7332fb6a-65c6-43ca-bd6a-6b905cd16057","block_type":"box","text":"and/or the reduced sales effor ts necessary to obtain their investments. Financial intermediaries may, in connection","page_number":147,"box":{"x":69,"y":158,"width":827,"height":11}},{"id":"11300087-d55e-4a04-8afb-7bc5e0bccb36","block_type":"box","text":"with a change in account type or otherwise in accordance with a financial intermediary’s policies and procedures,","page_number":147,"box":{"x":68,"y":173,"width":809,"height":11}},{"id":"2e2d10c4-e48b-40a8-a6d0-772dccb98aff","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":147,"box":{"x":69,"y":188,"width":823,"height":12}},{"id":"49106458-03a7-455c-b8d3-ffd0a03872ae","block_type":"box","text":"exchanged shares are not subject to a contingent deferred sales charge and that shareholders meet the eligibility","page_number":147,"box":{"x":69,"y":203,"width":812,"height":12}},{"id":"5f4c8dcb-b51d-405f-b8cf-404cde1ef6b5","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":147,"box":{"x":69,"y":218,"width":813,"height":12}},{"id":"464a2f5b-c146-42e8-a704-1a3637a6b7ee","block_type":"box","text":"cer tain financial intermediaries, as described under “Intermediary-Defined Sales Charge Waiver Policies” in the","page_number":147,"box":{"x":69,"y":234,"width":793,"height":11}},{"id":"1afc2f2a-2fc0-49b1-a246-d1b300bd7205","block_type":"box","text":"Fund’s Prospectus. Please speak to your financial intermediary for more information.","page_number":147,"box":{"x":70,"y":249,"width":603,"height":11}},{"id":"d4c8818d-75d4-4449-af5d-527e6af3d03f","block_type":"box","text":"Reinvested Dividends.","page_number":147,"box":{"x":102,"y":272,"width":156,"height":8}},{"id":"33a3e364-a461-4669-9b5b-05de20419410","block_type":"box","text":"No sales charges are imposed upon shares issued as a result of the automatic","page_number":147,"box":{"x":265,"y":271,"width":566,"height":12}},{"id":"9b9d794b-7e87-4d20-a699-66b5d621b32a","block_type":"box","text":"reinvestment of dividends.","page_number":147,"box":{"x":69,"y":286,"width":186,"height":10}},{"id":"f9b6bc7f-b417-481f-9ced-1f79e984a1cb","block_type":"box","text":"Right of Accumulation.","page_number":147,"box":{"x":102,"y":309,"width":158,"height":11}},{"id":"1641a451-62d7-44a0-b9cf-9eb9e4d8cadf","block_type":"box","text":"Investors have a “right of accumulation” under which any of the following may be","page_number":147,"box":{"x":267,"y":309,"width":574,"height":11}},{"id":"e70ff548-ddff-40b4-b486-bf03d16ce731","block_type":"box","text":"combined with the amount of the current purchase in determining whether an investor qualifies for a breakpoint and","page_number":147,"box":{"x":69,"y":324,"width":826,"height":12}},{"id":"37b55102-6fd6-4497-a1ad-f717caab7503","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":147,"box":{"x":69,"y":339,"width":810,"height":12}},{"id":"0fb368d6-f8c3-413b-b5c9-3288f5881d43","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":147,"box":{"x":70,"y":355,"width":825,"height":11}},{"id":"f80e8405-57b6-46f4-b442-f5c8a41c6bc3","block_type":"box","text":"existing shares of cer tain unlisted closed-end management investment companies sponsored and advised by","page_number":147,"box":{"x":69,"y":370,"width":780,"height":11}},{"id":"bcba6895-0f83-462f-8fab-4fe68701fb85","block_type":"box","text":"BlackRock or its affiliates (“Eligible Unlisted BlackRock Closed-End Funds”) and (iii) the investment in the BlackRock","page_number":147,"box":{"x":70,"y":385,"width":828,"height":11}},{"id":"ae244f7c-1aad-4469-8a6a-2f9da7177cee","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":147,"box":{"x":69,"y":400,"width":804,"height":11}},{"id":"f839077a-a516-4cec-9b02-22062c82c509","block_type":"box","text":"intermediaries may value current holdings of their customers differently for purposes of determining whether an","page_number":147,"box":{"x":70,"y":415,"width":794,"height":11}},{"id":"daeb61ae-0dac-4cca-aec3-80f4208376c8","block_type":"box","text":"investor qualifies for a breakpoint and a reduced front-end sales charge, although customers of the same financial","page_number":147,"box":{"x":70,"y":430,"width":814,"height":11}},{"id":"8a54b2e7-06a2-4462-b0cb-91a69729d25a","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":147,"box":{"x":70,"y":445,"width":828,"height":12}},{"id":"34b0df4e-ea4e-4f7f-9636-2044a4ca6458","block_type":"box","text":"any previously purchased shares. Cer tain funds employ a “passive” management approach and attempt to match the","page_number":147,"box":{"x":69,"y":460,"width":838,"height":12}},{"id":"aabc6ba6-cd7d-4c4f-b946-205384502416","block_type":"box","text":"per formance of a target index as closely as possible before the deduction of Fund expenses (“Index Funds”).","page_number":147,"box":{"x":70,"y":475,"width":776,"height":12}},{"id":"65acdf0b-0381-433a-b294-669ffc4a27bd","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":147,"box":{"x":68,"y":491,"width":835,"height":11}},{"id":"dd74b033-4632-46ab-8f49-0bba47537810","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":147,"box":{"x":69,"y":506,"width":839,"height":11}},{"id":"da571451-ec5b-46df-b3f4-b0acc7b6e636","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":147,"box":{"x":70,"y":521,"width":829,"height":11}},{"id":"ce0aa359-3fa3-4fa5-87ee-a5dd15d7dd63","block_type":"box","text":"purchase in determining whether an investor qualifies for a breakpoint and a reduced front-end sales charge.","page_number":147,"box":{"x":70,"y":536,"width":774,"height":11}},{"id":"2424c7a2-0933-4a52-894e-96a507d5b542","block_type":"box","text":"Letter of Intent.","page_number":147,"box":{"x":102,"y":559,"width":109,"height":9}},{"id":"d18fc165-f2dd-4dab-aa0c-a6a86f553c6f","block_type":"box","text":"An investor may qualify for a reduced front-end sales charge immediately by signing a “Letter of","page_number":147,"box":{"x":217,"y":559,"width":681,"height":11}},{"id":"8786f56c-f142-494e-8a92-fb6cfc195198","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":147,"box":{"x":70,"y":574,"width":820,"height":11}},{"id":"61a86de4-dc3f-4870-879e-238f92504a01","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":147,"box":{"x":68,"y":589,"width":792,"height":11}},{"id":"c111682c-0ccc-4c4d-9988-8552901e2e49","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":147,"box":{"x":70,"y":604,"width":802,"height":11}},{"id":"2dd6b40c-f7a4-47cb-a3ef-205b83e2e7ea","block_type":"box","text":"more Eligible Unlisted BlackRock Closed-End Funds and/or (iii) make an investment through the BlackRock","page_number":147,"box":{"x":69,"y":619,"width":760,"height":11}},{"id":"ee8957a5-ed40-45d1-9312-64b8a6320b07","block_type":"box","text":"CollegeAdvantage 529 Program in one or more BlackRock Funds. The initial investment must meet the minimum","page_number":147,"box":{"x":69,"y":634,"width":800,"height":12}},{"id":"28ddcd8a-72fd-468a-803c-e1ec1eed83da","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":147,"box":{"x":70,"y":649,"width":826,"height":12}},{"id":"97f9f50b-1f6a-4195-bbe9-500804eac686","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":147,"box":{"x":69,"y":664,"width":822,"height":12}},{"id":"fcfa0638-2d04-41fa-a85e-a7ee567df7c7","block_type":"box","text":"Investor P, Institutional, Class K and Premier Shares, Eligible Unlisted BlackRock Closed-End Funds and the","page_number":147,"box":{"x":70,"y":680,"width":764,"height":11}},{"id":"95bab995-7fb2-4348-9f4a-f536ef852517","block_type":"box","text":"BlackRock CollegeAdvantage 529 Program Class A and Class C Units) as of the date of commencement that are","page_number":147,"box":{"x":70,"y":695,"width":800,"height":11}},{"id":"1283d6d2-339f-483a-be41-2c530e5b0b94","block_type":"box","text":"eligible under the Right of Accumulation may be counted towards the sales charge reduction. The investor must notify","page_number":147,"box":{"x":69,"y":710,"width":838,"height":11}},{"id":"745969a6-3118-486d-a528-206a2f0beff3","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":147,"box":{"x":68,"y":725,"width":835,"height":11}},{"id":"829b6e98-f174-4595-964b-d26793cc5820","block_type":"box","text":"BlackRock CollegeAdvantage 529 Program that should be counted towards the sales charge reduction and (ii) any","page_number":147,"box":{"x":70,"y":740,"width":811,"height":11}},{"id":"626a2e11-51ce-48ce-a453-40bd1115596a","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":147,"box":{"x":69,"y":755,"width":814,"height":11}},{"id":"95586b0c-e94d-44ae-bf24-bdf97cc80212","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":147,"box":{"x":68,"y":770,"width":827,"height":12}},{"id":"b604cee3-35fd-4929-b8fc-30ccb90ed807","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":147,"box":{"x":69,"y":785,"width":827,"height":12}},{"id":"b71cc0e3-ead2-4b67-b26e-cd702ad0c729","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":147,"box":{"x":69,"y":801,"width":817,"height":11}},{"id":"abebea40-2e43-4024-bd1d-665c5a538d60","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":147,"box":{"x":70,"y":816,"width":807,"height":11}},{"id":"d3df7638-f515-49f6-9b62-4a4c4ebeebe9","block_type":"box","text":"Shares, as applicable, held in escrow to pay the difference.","page_number":147,"box":{"x":69,"y":831,"width":423,"height":11}},{"id":"dca68d0c-1941-4a3f-8e95-3aa2683b12c1","block_type":"box","text":"Placement Fees.","page_number":147,"box":{"x":102,"y":854,"width":116,"height":8}},{"id":"85ba74ad-dc1b-444b-bbd8-1edd265f7ba8","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":147,"box":{"x":102,"y":876,"width":777,"height":11}},{"id":"cb018494-8a3b-4289-a9b8-0371d462febd","block_type":"box","text":"which may depend on the policies, procedures and trading platforms of your financial intermediary.","page_number":147,"box":{"x":68,"y":891,"width":704,"height":12}},{"id":"e799bbbf-752b-45d3-9b36-ad05304c563f","block_type":"box","text":"II-101","page_number":147,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"029ad870-362e-41cc-be9d-57b4ab494b2f","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":147,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b876e298-aa63-4104-a365-a6781de5050b","block_type":"box","text":"Except as noted below, these placement fees may be up to the following amounts for Investor A Shares:","page_number":148,"box":{"x":102,"y":45,"width":741,"height":11}},{"id":"47ae6aca-26a7-4a0b-9be8-b6d433eae92c","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":148,"box":{"x":167,"y":72,"width":361,"height":10}},{"id":"8e9cd03e-86bc-4883-870e-186d6560093a","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":148,"box":{"x":535,"y":72,"width":288,"height":9}},{"id":"527b6868-6d84-43da-880e-e5157a818103","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":148,"box":{"x":167,"y":87,"width":361,"height":10}},{"id":"8b91e5e2-c952-4d38-a044-11d57f8eb482","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":148,"box":{"x":535,"y":88,"width":288,"height":8}},{"id":"7327abbf-6496-460f-a5d7-967d59bb18d9","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":148,"box":{"x":167,"y":102,"width":345,"height":10}},{"id":"facdf617-a77f-45cf-9bfa-f3bb2ac4fbc2","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":148,"box":{"x":518,"y":103,"width":305,"height":9}},{"id":"9581cf20-90cd-4c3c-aa5c-9d0c49ff7210","block_type":"box","text":"With respect to Investor A Shares of BlackRock Global Allocation Fund, Inc., BlackRock Dynamic High Income","page_number":148,"box":{"x":101,"y":126,"width":776,"height":12}},{"id":"12afd332-84cd-429b-827b-a944e05e65c2","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":148,"box":{"x":69,"y":142,"width":774,"height":11}},{"id":"f0de57a4-c1bc-432f-9561-7ed838906a79","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":148,"box":{"x":70,"y":157,"width":824,"height":11}},{"id":"defe095e-c64b-4bec-b7b9-281ba565dbff","block_type":"box","text":"and BlackRock Event Driven Equity Fund, the placement fees may be up to the following amounts:","page_number":148,"box":{"x":69,"y":172,"width":695,"height":11}},{"id":"961eadf2-0ed1-4f91-a562-95cbaeb8d9f8","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":148,"box":{"x":167,"y":199,"width":410,"height":11}},{"id":"d83809db-3caf-4b32-a1d8-6398cb53cc87","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":148,"box":{"x":583,"y":200,"width":240,"height":9}},{"id":"c8afd999-bfaf-4f44-8efa-2cd2f549bf3b","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":148,"box":{"x":167,"y":214,"width":361,"height":11}},{"id":"4f1678ba-b1b1-4da5-b060-e8fd7107a80c","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":148,"box":{"x":535,"y":215,"width":288,"height":9}},{"id":"2ec4a02d-5911-4d8e-8323-607330ef5f27","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":148,"box":{"x":167,"y":229,"width":345,"height":11}},{"id":"959c68cf-0457-41ec-8f06-7e13747a6998","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":148,"box":{"x":518,"y":230,"width":305,"height":9}},{"id":"916ffcfc-d7cc-4eb8-8460-fa9bc12bebc4","block_type":"box","text":"With respect to Investor A Shares of BlackRock Systematic Multi-Strategy Fund of BlackRock Funds IV, BlackRock","page_number":148,"box":{"x":101,"y":254,"width":806,"height":11}},{"id":"267d22cf-3ca0-4ece-a4b1-43440899eec0","block_type":"box","text":"Advantage CoreAlpha Bond Fund of BlackRock Funds VI, BlackRock Tactical Oppor tunities Fund of BlackRock Funds","page_number":148,"box":{"x":68,"y":269,"width":821,"height":11}},{"id":"9f55dcbe-3c31-4edc-bad6-e28aa6c21325","block_type":"box","text":"SM","page_number":148,"box":{"x":890,"y":269,"width":11,"height":5}},{"id":"a1077d07-d4d5-4cd5-93df-acfaf1928ff9","block_type":"box","text":",","page_number":148,"box":{"x":903,"y":276,"width":2,"height":3}},{"id":"ef952a15-dc99-4a6b-8b61-30b834c18b92","block_type":"box","text":"BlackRock High Yield Por tfolio, BlackRock Core Bond Por tfolio and BlackRock Sustainable High Yield Bond Fund of","page_number":148,"box":{"x":70,"y":284,"width":816,"height":11}},{"id":"f9c7353a-92f5-4fc1-bea7-dab5f8ef3893","block_type":"box","text":"BlackRock Funds V, BlackRock Securitized Income Fund of Managed Account Series II and BlackRock Strategic Global","page_number":148,"box":{"x":70,"y":299,"width":835,"height":11}},{"id":"47e9de72-fd73-46c8-b19e-0c40021c59b2","block_type":"box","text":"Bond Fund, Inc., the placement fees may be up to the following amounts:","page_number":148,"box":{"x":70,"y":314,"width":520,"height":12}},{"id":"624eb544-89b2-48db-a7e1-4d0f3042071f","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":148,"box":{"x":167,"y":341,"width":361,"height":11}},{"id":"8451d2b6-e357-44a3-a759-c2ad77ad80a7","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":148,"box":{"x":535,"y":342,"width":288,"height":9}},{"id":"50706a2a-a1c5-4ea2-b147-edfaef00cf57","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":148,"box":{"x":167,"y":356,"width":361,"height":11}},{"id":"f9b3b78d-9a4a-468b-bf87-b61ce7c5cc99","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":148,"box":{"x":535,"y":357,"width":288,"height":9}},{"id":"23f64697-31a9-4005-a22c-7c29a1bce8f6","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":148,"box":{"x":167,"y":372,"width":345,"height":10}},{"id":"b873a20c-ac4b-4d74-9f99-506e5f33adb9","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":148,"box":{"x":518,"y":372,"width":305,"height":9}},{"id":"4eb76f5f-1bb1-42d5-9e9a-0641a41599ed","block_type":"box","text":"With respect to Investor A Shares of BlackRock Mor tgage-Backed Securities Fund and BlackRock Impact","page_number":148,"box":{"x":101,"y":396,"width":743,"height":11}},{"id":"f3bf1a54-6040-485d-a05c-3aea572047d8","block_type":"box","text":"Mor tgage Fund of BlackRock Funds V, the placement fees may be up to the following amounts:","page_number":148,"box":{"x":70,"y":411,"width":674,"height":12}},{"id":"cb7e173b-fdab-4682-8c26-2071b71e072e","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":148,"box":{"x":167,"y":438,"width":361,"height":11}},{"id":"673d09d2-bcf8-47c0-8b11-a74ce956baba","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":148,"box":{"x":535,"y":439,"width":288,"height":9}},{"id":"7fd4f5de-2da5-4024-8f97-aded48dcdee9","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":148,"box":{"x":167,"y":453,"width":361,"height":11}},{"id":"09fd380a-1f48-4d99-b294-60923473dbb1","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":148,"box":{"x":535,"y":454,"width":288,"height":9}},{"id":"cae80e99-7ef3-4751-a2a2-8ef5a833a283","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":148,"box":{"x":167,"y":469,"width":345,"height":10}},{"id":"7f7afa56-fc17-44d9-a094-5404f7351a0e","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":148,"box":{"x":518,"y":469,"width":305,"height":9}},{"id":"c04f4001-d5ed-44bb-b8c7-fca03f65e526","block_type":"box","text":"With respect to Investor A Shares of BlackRock Managed Income Fund of BlackRock Funds II, the placement fees","page_number":148,"box":{"x":101,"y":493,"width":808,"height":11}},{"id":"fb4071d6-adaf-4315-8a5b-8c3b0954a947","block_type":"box","text":"may be up to the following amounts:","page_number":148,"box":{"x":69,"y":508,"width":257,"height":12}},{"id":"11a4095e-c755-45eb-9764-438fac84f813","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":148,"box":{"x":167,"y":535,"width":410,"height":11}},{"id":"2a636b2b-80ad-45b0-9f77-7e99624c9f2e","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":148,"box":{"x":583,"y":536,"width":240,"height":9}},{"id":"5e91d389-9e5d-48ba-9c91-5c2190b2ca7c","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":148,"box":{"x":167,"y":550,"width":361,"height":11}},{"id":"362a939c-2b65-406f-a6d3-21f723666e00","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":148,"box":{"x":535,"y":551,"width":288,"height":9}},{"id":"c32893b4-1422-4594-88a5-8e64ab82927d","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":148,"box":{"x":167,"y":566,"width":345,"height":10}},{"id":"1f8ea331-0b31-48f2-a16b-a36cc2d403cb","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":148,"box":{"x":518,"y":566,"width":305,"height":9}},{"id":"af9adbd6-508b-462c-b97f-8f9f87fc47a2","block_type":"box","text":"With respect to Investor A Shares of BlackRock Inflation Protected Bond Por tfolio of BlackRock Funds V, the","page_number":148,"box":{"x":101,"y":590,"width":768,"height":11}},{"id":"d4efaca8-4396-49d0-b528-d3128cf373ec","block_type":"box","text":"placement fees may be up to the following amounts:","page_number":148,"box":{"x":70,"y":605,"width":371,"height":12}},{"id":"a74ecd14-7cd9-4772-8fed-0867a5340763","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":148,"box":{"x":167,"y":632,"width":361,"height":11}},{"id":"dcf5874d-611b-4e73-9704-18d3924565cf","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":148,"box":{"x":535,"y":633,"width":288,"height":9}},{"id":"9cfa4805-3a6e-4a9e-88f7-563913e2a335","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":148,"box":{"x":167,"y":647,"width":361,"height":11}},{"id":"2d0d642b-2c14-466b-84c9-1ebbbd069953","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.10%","page_number":148,"box":{"x":535,"y":648,"width":288,"height":9}},{"id":"3388da0b-814a-48df-81fe-65be6efcd74a","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":148,"box":{"x":167,"y":663,"width":345,"height":10}},{"id":"a8114185-3e49-409a-9e42-4d8de7ad734e","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.05%","page_number":148,"box":{"x":518,"y":663,"width":305,"height":9}},{"id":"ebe8ef3b-9e4e-4b7d-8fd4-a137afaa43ee","block_type":"box","text":"With respect to Investor A Shares of BlackRock Low Duration Bond Por tfolio, BlackRock Floating Rate Income","page_number":148,"box":{"x":101,"y":687,"width":778,"height":11}},{"id":"526bd307-03d5-4cb2-aa59-aa0047095816","block_type":"box","text":"Por tfolio, BlackRock Income Fund and BlackRock Strategic Income Oppor tunities Por tfolio of BlackRock Funds V, the","page_number":148,"box":{"x":69,"y":702,"width":830,"height":12}},{"id":"6183b5a4-53e2-4e40-8ddb-c8be7d544bb3","block_type":"box","text":"placement fees may be up to the following amounts:","page_number":148,"box":{"x":70,"y":717,"width":371,"height":12}},{"id":"78b3b35a-0e47-4d24-889c-86f0a9cebb95","block_type":"box","text":"$500,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":148,"box":{"x":167,"y":744,"width":410,"height":12}},{"id":"9f52040c-b80b-4ffc-ac15-fa8048f7e97e","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":148,"box":{"x":583,"y":745,"width":240,"height":9}},{"id":"5bd38f9f-9911-415b-91b9-f0f2531a195b","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":148,"box":{"x":167,"y":760,"width":361,"height":10}},{"id":"cdda893d-e5cf-46bb-8439-a9da729f295f","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":148,"box":{"x":535,"y":760,"width":288,"height":9}},{"id":"ad276286-460e-45a5-8234-77152aea57a5","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":148,"box":{"x":167,"y":775,"width":345,"height":10}},{"id":"581981fd-d2e4-411e-a178-f35983edb386","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":148,"box":{"x":518,"y":775,"width":305,"height":9}},{"id":"58537e74-2936-4e6c-a3bd-a71803b5a359","block_type":"box","text":"With respect to Investor A Shares of BlackRock Shor t Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":148,"box":{"x":101,"y":799,"width":779,"height":11}},{"id":"6d038646-a337-4721-812d-a54a85b19394","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":148,"box":{"x":70,"y":814,"width":780,"height":12}},{"id":"58ff6e4a-2b0a-4009-b563-e87113a9f599","block_type":"box","text":"$250,000 and above . . . .","page_number":148,"box":{"x":167,"y":841,"width":182,"height":12}},{"id":"b689fc49-3d8a-4152-82e9-5aa90c09d542","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":148,"box":{"x":355,"y":842,"width":468,"height":9}},{"id":"e8db72af-4a53-4637-a437-ee6a7dea8af6","block_type":"box","text":"II-102","page_number":148,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"539d451f-3c6f-4a48-aae7-e52ba1f2ad7e","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":148,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"daa30e34-5ff9-40ff-9606-b9ba89faca47","block_type":"box","text":"With respect to Investor A Shares of BlackRock Shor t Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":149,"box":{"x":101,"y":45,"width":779,"height":11}},{"id":"40201679-040a-416e-9ab2-cc57b571ebcf","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":149,"box":{"x":70,"y":60,"width":819,"height":11}},{"id":"2846e20f-9969-4657-a517-4012f0af2b1c","block_type":"box","text":"the following amounts:","page_number":149,"box":{"x":68,"y":75,"width":161,"height":11}},{"id":"be0c0792-533d-468b-9311-313362f4d95e","block_type":"box","text":"$100,000 and above . . . .","page_number":149,"box":{"x":167,"y":102,"width":182,"height":11}},{"id":"b1d26f1b-157e-4fed-8455-a6d71964ea76","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":149,"box":{"x":355,"y":103,"width":468,"height":9}},{"id":"e935998f-574e-4dbe-9275-862838e28302","block_type":"box","text":"With respect to Investor A Shares of BlackRock Shor t Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":149,"box":{"x":101,"y":126,"width":779,"height":11}},{"id":"7b4b6d12-d134-4da6-bddc-e9ae7017cbf7","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":149,"box":{"x":70,"y":142,"width":775,"height":11}},{"id":"13531005-9efc-4eda-ab12-d20448d87150","block_type":"box","text":"$250,000 and above . . . .","page_number":149,"box":{"x":167,"y":169,"width":182,"height":11}},{"id":"59c4c2f6-0c70-47a3-9716-c0dd38c84b4c","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":149,"box":{"x":355,"y":169,"width":468,"height":9}},{"id":"a64160bf-ddf3-4100-ae71-08963e35b0e2","block_type":"box","text":"With respect to Investor A Shares of BlackRock Strategic Municipal Oppor tunities Fund of BlackRock Municipal","page_number":149,"box":{"x":101,"y":193,"width":788,"height":12}},{"id":"464bc5a2-f17f-4c54-b2ea-4873ea71b035","block_type":"box","text":"Series Trust, BlackRock California Municipal Oppor tunities Fund of BlackRock California Municipal Series Trust,","page_number":149,"box":{"x":69,"y":208,"width":792,"height":11}},{"id":"96c14705-3a69-452a-9332-5790a016826d","block_type":"box","text":"BlackRock New York Municipal Oppor tunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock","page_number":149,"box":{"x":70,"y":224,"width":787,"height":11}},{"id":"99a0d7ba-c594-405b-ad25-43a1dbf2fb65","block_type":"box","text":"Pennsylvania Municipal Bond Fund of BlackRock Multi-State Municipal Series Trust and BlackRock National Municipal","page_number":149,"box":{"x":69,"y":239,"width":834,"height":11}},{"id":"f9cbd9b9-1d46-4c64-9d51-d0e4eee6e631","block_type":"box","text":"Fund of BlackRock Municipal Bond Fund, Inc., the placement fees may be up to the following amounts:","page_number":149,"box":{"x":70,"y":254,"width":729,"height":11}},{"id":"1c6e82b6-b34a-4656-9e29-62dd2d06865f","block_type":"box","text":"$250,000 but less than $4 million . . . . . . . . . . . . . . . . . . . .","page_number":149,"box":{"x":167,"y":281,"width":410,"height":11}},{"id":"622deaff-7c42-4aa0-8673-43e69da20e6c","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":149,"box":{"x":583,"y":282,"width":240,"height":8}},{"id":"d6b78afe-7b90-40f5-bc34-003aac1b56b7","block_type":"box","text":"$4 million but less than $10 million . . . . . . . . . . . . .","page_number":149,"box":{"x":167,"y":296,"width":361,"height":10}},{"id":"f5dceb6a-8a77-4411-90c2-2035ad25819d","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":149,"box":{"x":535,"y":297,"width":288,"height":9}},{"id":"3fa82756-370d-492f-941e-e5e152aae6b7","block_type":"box","text":"$10 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":149,"box":{"x":167,"y":311,"width":345,"height":11}},{"id":"dd4f1a0a-cffa-4b31-9000-07ab7f65eff4","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":149,"box":{"x":518,"y":312,"width":305,"height":9}},{"id":"b7c44d50-334d-4355-b0fe-e8ea790626b0","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":149,"box":{"x":101,"y":336,"width":801,"height":11}},{"id":"5dd5b017-1dc7-4f52-821e-841d02492e4c","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":149,"box":{"x":69,"y":351,"width":769,"height":11}},{"id":"1f836b96-b191-485f-bcfc-28af0ab983a8","block_type":"box","text":"BlackRock Funds II, BlackRock Total Return Fund of BlackRock Bond Fund, Inc. and BlackRock Balanced Fund, Inc.,","page_number":149,"box":{"x":70,"y":366,"width":818,"height":10}},{"id":"3e67d6c1-457f-4bbf-bff5-29b4eb13a7e6","block_type":"box","text":"the placement fees may be up to the following amounts:","page_number":149,"box":{"x":68,"y":381,"width":401,"height":11}},{"id":"56337525-847d-4357-a3fe-9c585cf55eae","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":149,"box":{"x":167,"y":408,"width":410,"height":11}},{"id":"24014668-bfc5-45eb-96f1-94d6485f6e76","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":149,"box":{"x":583,"y":409,"width":240,"height":9}},{"id":"c2eaf342-6799-4b6b-b90b-c081177d7a09","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":149,"box":{"x":167,"y":423,"width":361,"height":11}},{"id":"bef7061f-d06b-4290-8619-15f24bc0fa51","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":149,"box":{"x":535,"y":424,"width":288,"height":9}},{"id":"664f63bd-f730-491b-a91b-6d74985d9be3","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":149,"box":{"x":167,"y":438,"width":345,"height":11}},{"id":"e984a8a7-dde1-47ae-bfca-7079d8d0d692","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":149,"box":{"x":518,"y":439,"width":305,"height":9}},{"id":"d7cb01dd-a663-4538-b6a4-4a61a9cace7d","block_type":"box","text":"With respect to Investor P Shares of BlackRock LifePath","page_number":149,"box":{"x":101,"y":463,"width":398,"height":11}},{"id":"d854c7d7-2c49-4d2b-8dcd-a70fe12c51cc","block_type":"box","text":"®","page_number":149,"box":{"x":500,"y":463,"width":6,"height":5}},{"id":"9ee487ce-9ac4-4612-8b1d-9ef779a8180f","block_type":"box","text":"Index 2030 Fund, BlackRock 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a","page_number":149,"box":{"x":69,"y":899,"width":811,"height":11}},{"id":"2919cb84-a1ea-4ce9-a077-e687e02e8f6c","block_type":"box","text":"II-103","page_number":149,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"f74d9e16-30ed-40c8-9292-fad67a5fee51","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":149,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8f450eef-5945-423e-9032-9d4929e4e9d1","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":150,"box":{"x":68,"y":45,"width":827,"height":11}},{"id":"03a075ab-35f6-4316-a492-4e2df6c9f87a","block_type":"box","text":"institution; (f) financial intermediaries who have entered into an agreement with the Distributor and have been","page_number":150,"box":{"x":70,"y":60,"width":782,"height":11}},{"id":"452fcdfd-1feb-4e74-b3c1-7ce18949e2ff","block_type":"box","text":"approved by the Distributor to offer Fund 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who within 60 days of liquidation buy new shares of another BlackRock Fund (but","page_number":150,"box":{"x":70,"y":135,"width":836,"height":11}},{"id":"59748a1b-fc2b-4666-a219-6a1fd21f4df3","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":150,"box":{"x":69,"y":150,"width":812,"height":12}},{"id":"3f5f09e7-0c35-4295-9f64-a97f61d63bfb","block_type":"box","text":"Sub-Advisers, Transfer Agent, Distributor, fund accounting agents, Barclays PLC and their affiliates may buy Investor A","page_number":150,"box":{"x":69,"y":166,"width":840,"height":11}},{"id":"94f2ff34-4da0-4519-8684-c3d264435ea1","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":150,"box":{"x":69,"y":181,"width":788,"height":11}},{"id":"6d5db87c-f62a-4314-bbcd-c6957c7e86d8","block_type":"box","text":"including: (a) officers, directors and par tners; (b) employees and retirees; (c) employees or registered representatives","page_number":150,"box":{"x":70,"y":196,"width":838,"height":11}},{"id":"7a0c4c76-dda4-40b1-84ab-ddc4b16ecc22","block_type":"box","text":"of firms who have entered into selling agreements to distribute shares of BlackRock-advised funds; (d) immediate","page_number":150,"box":{"x":69,"y":211,"width":810,"height":11}},{"id":"f607dd01-bdf5-4f73-89da-89623e46845c","block_type":"box","text":"family members of such persons (“immediate family members” shall be defined as the investor, the investor’s","page_number":150,"box":{"x":68,"y":226,"width":787,"height":11}},{"id":"6f860f0f-f0ad-4f05-96f3-8f8829f3bf64","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":150,"box":{"x":69,"y":241,"width":834,"height":11}},{"id":"1aae27e0-d81b-4fd6-b65f-5d2801906dc2","block_type":"box","text":"plan for any of the persons set for th in (a) through (d). 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The availability of Investor A or Investor P Shares sales charge waivers may depend upon the policies,","page_number":150,"box":{"x":69,"y":332,"width":783,"height":11}},{"id":"f7c8a29a-c530-45f2-b744-6ad7d2d49465","block_type":"box","text":"procedures and trading platforms of your financial intermediary; consult your financial adviser.","page_number":150,"box":{"x":70,"y":347,"width":668,"height":11}},{"id":"e5b1d834-3f10-4d2d-8d96-6d7d350ad456","block_type":"box","text":"If you invest $1,000,000 ($250,000 for BlackRock Dynamic High Income Por tfolio, BlackRock Multi-Asset","page_number":150,"box":{"x":102,"y":369,"width":754,"height":12}},{"id":"0feab89c-ab8a-4a30-86e8-37f73dfdac1c","block_type":"box","text":"Income Por tfolio and BlackRock Managed Income Fund of BlackRock Funds II, BlackRock Credit Relative Value Fund","page_number":150,"box":{"x":70,"y":385,"width":823,"height":11}},{"id":"8d721497-432b-4dea-90d8-8bd8646e4918","block_type":"box","text":"of BlackRock Funds IV, BlackRock Total Return Fund of BlackRock Bond Fund, Inc., BlackRock Global Allocation Fund,","page_number":150,"box":{"x":69,"y":400,"width":833,"height":10}},{"id":"5a886814-84e3-41db-9024-567e8738eb18","block_type":"box","text":"Inc., BlackRock National Municipal Fund of BlackRock Municipal Bond Fund, Inc., BlackRock Shor t Duration Muni","page_number":150,"box":{"x":70,"y":415,"width":802,"height":11}},{"id":"cddbf513-3777-47d9-89c6-53d3c1eb9efd","block_type":"box","text":"Fund of BlackRock Municipal Bond Fund, Inc., BlackRock Strategic Municipal Oppor tunities Fund of BlackRock","page_number":150,"box":{"x":70,"y":430,"width":781,"height":11}},{"id":"4009887c-2985-4785-9539-7d049c18d08c","block_type":"box","text":"Municipal Series Trust, BlackRock California Municipal Oppor tunities Fund of BlackRock California Municipal Series","page_number":150,"box":{"x":70,"y":445,"width":819,"height":11}},{"id":"db63024f-61e4-47cc-b858-45a93c9eb8be","block_type":"box","text":"Trust, BlackRock New York Municipal Oppor tunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock","page_number":150,"box":{"x":68,"y":460,"width":835,"height":12}},{"id":"963a4a62-ad49-49e3-931e-59610a8fa9e5","block_type":"box","text":"Pennsylvania Municipal Bond Fund of BlackRock Multi-State Municipal Series Trust, BlackRock Event Driven Equity","page_number":150,"box":{"x":69,"y":475,"width":813,"height":12}},{"id":"fcf17c44-c324-44cb-b139-3367a80af667","block_type":"box","text":"Fund and BlackRock Balanced Fund, Inc., and $500,000 for BlackRock Low Duration Bond Por tfolio, BlackRock","page_number":150,"box":{"x":70,"y":490,"width":792,"height":11}},{"id":"f7dddccc-9ce6-4e75-834c-58570d413a05","block_type":"box","text":"Floating Rate Income Por tfolio, BlackRock Income Fund and BlackRock Strategic Income Oppor tunities Por tfolio of","page_number":150,"box":{"x":70,"y":506,"width":813,"height":11}},{"id":"133a7986-ac74-46b8-9b79-9e1f686c7a3a","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":150,"box":{"x":70,"y":521,"width":837,"height":11}},{"id":"e6aee85d-bd26-4e89-ba26-cfb91c506178","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":150,"box":{"x":70,"y":536,"width":790,"height":11}},{"id":"a7940168-a337-4a42-be0f-f0a3be622458","block_type":"box","text":"shor ter holding period may apply depending on the Fund), you may be charged a deferred sales charge.","page_number":150,"box":{"x":69,"y":551,"width":736,"height":11}},{"id":"9128e5ed-fc8f-4fa0-8165-626948d357d9","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":150,"box":{"x":101,"y":574,"width":763,"height":11}},{"id":"66807345-6172-4b39-bd6f-d22d7cdc7b27","block_type":"box","text":"Funds and BlackRock Shor t Obligations Fund purchased in an exchange transaction for Investor A Shares of a","page_number":150,"box":{"x":70,"y":589,"width":782,"height":11}},{"id":"17c38c19-ffd0-4580-a544-b7fbd91621f0","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":150,"box":{"x":70,"y":604,"width":832,"height":11}},{"id":"c0a77ec9-59fd-47a4-a8af-f4c82c811502","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":150,"box":{"x":68,"y":618,"width":839,"height":12}},{"id":"5e306ea2-c6f8-4532-9afe-862db7725bee","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":150,"box":{"x":69,"y":634,"width":817,"height":12}},{"id":"c99b9b49-1eb3-4d36-a974-af6c9c5ed36c","block_type":"box","text":"charge is only charged upon redemptions of Investor A Shares within 18 months after you originally acquired such","page_number":150,"box":{"x":69,"y":649,"width":811,"height":12}},{"id":"3c98e7a2-0412-4b17-b465-b7a2a442355a","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":150,"box":{"x":70,"y":664,"width":818,"height":12}},{"id":"8524afbf-9ebc-49b8-b01f-9ed37ce091a0","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":150,"box":{"x":69,"y":680,"width":836,"height":11}},{"id":"1a1d7213-a61d-406b-88f5-951150dd3252","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":150,"box":{"x":69,"y":695,"width":830,"height":11}},{"id":"6ba1015c-89b6-4e04-99f5-9671adc99028","block_type":"box","text":"period, as applicable) (as measured from your original purchase of Investor A Shares that you exchanged into","page_number":150,"box":{"x":70,"y":710,"width":778,"height":11}},{"id":"85ea0a99-cb36-40af-a1e0-8257c99d7b67","block_type":"box","text":"Investor A Shares of the Index Fund or BlackRock Shor t Obligations Fund).","page_number":150,"box":{"x":70,"y":725,"width":526,"height":11}},{"id":"bc6d9416-76af-4dc9-84bb-1a7814c3bcb3","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":150,"box":{"x":101,"y":748,"width":788,"height":11}},{"id":"09c71fce-de38-4b96-a24a-95f157245f32","block_type":"box","text":"(a) redemptions of Investor A or Investor P Shares purchased through cer tain employer-sponsored retirement plans","page_number":150,"box":{"x":69,"y":763,"width":819,"height":11}},{"id":"cb5019bf-5a06-4779-ae22-8c0c12d7a992","block_type":"box","text":"and rollovers of current investments in a Fund through such plans; (b) exchanges described in “Exchange Privilege”","page_number":150,"box":{"x":69,"y":778,"width":820,"height":11}},{"id":"8b8d36b9-7e64-438d-b287-aaecdefba80d","block_type":"box","text":"below; (c) redemptions made in connection with minimum required distributions from IRA and 403(b)(7) accounts due","page_number":150,"box":{"x":69,"y":793,"width":837,"height":11}},{"id":"e39c5823-7faf-4c27-a38e-74c40b2ecf6e","block_type":"box","text":"to the shareholder reaching the applicable age triggering such distributions; (d) redemptions made with respect to","page_number":150,"box":{"x":68,"y":808,"width":812,"height":11}},{"id":"38bd764f-51f1-44f7-a9a9-57de1535c709","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":150,"box":{"x":69,"y":823,"width":803,"height":11}},{"id":"95e75760-12da-4e44-9f96-7b4ac4b453ab","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":150,"box":{"x":69,"y":838,"width":772,"height":12}},{"id":"fe8efd5b-6a88-4bfa-9e3a-9c096943acc0","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":150,"box":{"x":69,"y":853,"width":835,"height":12}},{"id":"25fa225e-cdbb-4a29-82bd-98304779628d","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":150,"box":{"x":69,"y":869,"width":814,"height":11}},{"id":"7a2a17f5-fc67-491e-8649-c6ba2ed88fe3","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":150,"box":{"x":70,"y":884,"width":772,"height":11}},{"id":"530f365d-9af5-419b-905c-9374d6a0f601","block_type":"box","text":"Systematic Withdrawal Plan (described below); (h) redemptions related to the payment of BNY Mellon Investment","page_number":150,"box":{"x":69,"y":899,"width":805,"height":11}},{"id":"f2c33f76-8af2-4b64-acd1-619eca837e84","block_type":"box","text":"II-104","page_number":150,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"b2cdbdf8-4094-446a-97dd-58164c85a8ed","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":150,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"61a708b7-0622-4bd2-ab0b-f1e937eb8f1a","block_type":"box","text":"Servicing Trust Company custodial IRA fees; and (i) redemptions when a shareholder can demonstrate hardship, in","page_number":151,"box":{"x":69,"y":45,"width":817,"height":11}},{"id":"f39708c1-c8ee-431c-ac28-6efa53e6c2f4","block_type":"box","text":"the absolute discretion of a Fund.","page_number":151,"box":{"x":68,"y":60,"width":239,"height":9}},{"id":"ad611342-9727-4bec-9911-c11efb5d605a","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":151,"box":{"x":101,"y":82,"width":794,"height":12}},{"id":"9d287cc9-51fa-4539-b3de-812c3b2e2590","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":151,"box":{"x":68,"y":97,"width":776,"height":12}},{"id":"82a172e5-16ba-4b36-bd59-e9195c0b8cc0","block_type":"box","text":"BlackRock Dynamic High Income Por tfolio, BlackRock Multi-Asset Income Por tfolio and BlackRock Managed Income","page_number":151,"box":{"x":70,"y":113,"width":821,"height":11}},{"id":"1a725a8c-e335-4eb7-99a7-d52b0752077b","block_type":"box","text":"Fund of BlackRock Funds II, BlackRock Credit Relative Value Fund of BlackRock Funds IV, BlackRock Total Return","page_number":151,"box":{"x":70,"y":128,"width":800,"height":10}},{"id":"6bd45415-30a9-41d2-9d95-daf636e975c0","block_type":"box","text":"Fund of BlackRock Bond Fund, Inc., BlackRock Global Allocation Fund, Inc., BlackRock National Municipal Fund of","page_number":151,"box":{"x":70,"y":143,"width":806,"height":11}},{"id":"47b013cf-5438-4ce3-bfd6-f42f5341ac5b","block_type":"box","text":"BlackRock Municipal Bond Fund, Inc., BlackRock Shor t Duration Muni Fund of BlackRock Municipal Bond Fund, Inc.,","page_number":151,"box":{"x":70,"y":158,"width":823,"height":11}},{"id":"cc4eafad-fed3-4e3e-94b2-dc4da3c5e251","block_type":"box","text":"BlackRock Strategic Municipal Oppor tunities Fund of BlackRock Municipal Series Trust, BlackRock California","page_number":151,"box":{"x":70,"y":173,"width":770,"height":11}},{"id":"e63a2fc7-d7e8-4a03-871c-19da2f71c497","block_type":"box","text":"Municipal Oppor tunities Fund of BlackRock California Municipal Series Trust, BlackRock New York Municipal","page_number":151,"box":{"x":70,"y":188,"width":766,"height":11}},{"id":"03540f4a-96f0-4329-a24a-7efff4ee2c71","block_type":"box","text":"Oppor tunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock Pennsylvania Municipal Bond Fund of","page_number":151,"box":{"x":69,"y":203,"width":837,"height":12}},{"id":"84207d88-1873-4e83-8a05-ed5de364a676","block_type":"box","text":"BlackRock Multi-State Municipal Series Trust, BlackRock Event Driven Equity Fund and BlackRock Balanced Fund,","page_number":151,"box":{"x":70,"y":219,"width":805,"height":11}},{"id":"a3f1267d-28ef-47b2-80b4-ea57ad5238ff","block_type":"box","text":"Inc., and $500,000 for BlackRock Low Duration Bond Por tfolio, BlackRock Floating Rate Income Por tfolio, BlackRock","page_number":151,"box":{"x":70,"y":233,"width":832,"height":12}},{"id":"f202d9ea-21b6-458f-9309-3fbc6ec73081","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":151,"box":{"x":70,"y":249,"width":828,"height":11}},{"id":"9519f088-e6b5-499a-a0b8-2464c825e8f7","block_type":"box","text":"Investor P Shares. This may depend upon the policies, procedures and trading platforms of your financial","page_number":151,"box":{"x":70,"y":264,"width":746,"height":11}},{"id":"e943fc23-2f90-4f07-9c1c-b3d83f552b0b","block_type":"box","text":"intermediary; consult your financial adviser.","page_number":151,"box":{"x":70,"y":279,"width":307,"height":11}},{"id":"6d02de75-5703-49b4-a58b-ea96448b02c7","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":151,"box":{"x":102,"y":302,"width":799,"height":11}},{"id":"9e75a587-8a89-432a-9908-446e2ab03a51","block_type":"box","text":"to transfer investment positions from a foreign registered investment company advised by BlackRock or its affiliates","page_number":151,"box":{"x":68,"y":317,"width":829,"height":11}},{"id":"184f5008-b5fc-4d8b-8974-66dffeb73094","block_type":"box","text":"to a U.S. registered BlackRock-advised fund.","page_number":151,"box":{"x":68,"y":332,"width":317,"height":11}},{"id":"742a38d7-21ab-4fcc-b572-f24186f778d8","block_type":"box","text":"Acquisition of Cer tain Investment Companies.","page_number":151,"box":{"x":101,"y":355,"width":326,"height":11}},{"id":"ab3c78d5-33b4-420c-a733-c7e4e9b5a2db","block_type":"box","text":"Investor A and Investor P Shares may be offered at NAV in","page_number":151,"box":{"x":434,"y":355,"width":413,"height":11}},{"id":"fdfd8fd8-e180-43a4-bfb2-46bd0024cbc9","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":151,"box":{"x":69,"y":370,"width":811,"height":11}},{"id":"03f50e68-5317-49bc-8ce8-63f45d78ba9d","block_type":"box","text":"public or private investment company.","page_number":151,"box":{"x":70,"y":385,"width":266,"height":11}},{"id":"a9e5794e-39aa-4913-8d9c-28bfaa63ae28","block_type":"box","text":"Purchases Through Cer tain Financial Intermediaries.","page_number":151,"box":{"x":102,"y":408,"width":372,"height":11}},{"id":"feab1e2d-8d45-49a9-ba9c-52b603453ce2","block_type":"box","text":"Reduced sales charges may be applicable for purchases of","page_number":151,"box":{"x":481,"y":407,"width":421,"height":12}},{"id":"67dcddb9-33ef-4404-8618-d84040fa3fe3","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":151,"box":{"x":70,"y":423,"width":825,"height":11}},{"id":"a145a793-40df-4f17-8a75-33c1a6a08a80","block_type":"box","text":"and other financial intermediaries that meet and adhere to standards established by the Manager from time to time.","page_number":151,"box":{"x":69,"y":438,"width":830,"height":11}},{"id":"9f083195-9f2b-46dd-a685-b8e373a3104a","block_type":"box","text":"Deferred Sales Charge Alternative — Investor C Shares","page_number":151,"box":{"x":69,"y":468,"width":405,"height":11}},{"id":"d1eee8c8-7a5a-46e1-bc25-c9b3ef283842","block_type":"box","text":"Investors choosing the deferred sales charge alternative should consider Investor C Shares if they are uncer tain","page_number":151,"box":{"x":102,"y":491,"width":799,"height":11}},{"id":"1cf073de-0804-4b3c-a02b-9455c1ef713d","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":151,"box":{"x":69,"y":506,"width":828,"height":11}},{"id":"ce58ec4a-273d-4d08-a172-090d297f1554","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":151,"box":{"x":70,"y":520,"width":778,"height":12}},{"id":"81c53e47-73d8-4246-98b5-e0f1f01d18db","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":151,"box":{"x":70,"y":536,"width":826,"height":11}},{"id":"fce6e8d7-9253-4952-8983-7a6f99c6054d","block_type":"box","text":"set a lower maximum for Investor C Shares.","page_number":151,"box":{"x":69,"y":551,"width":311,"height":9}},{"id":"ac2d6507-a012-4f63-9bab-2128ca78b20b","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":151,"box":{"x":102,"y":574,"width":789,"height":11}},{"id":"23723a96-7c6d-4b06-85bf-0e7889ebe92e","block_type":"box","text":"intermediary associated with the account.","page_number":151,"box":{"x":70,"y":589,"width":297,"height":11}},{"id":"b3cab6b3-1682-49c1-b1a2-497d5f3a85d4","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":151,"box":{"x":102,"y":612,"width":669,"height":11}},{"id":"eb63a4af-de80-49bd-a4b2-3c6865d1499f","block_type":"box","text":"The deferred sales charge alternatives may be par ticularly appealing to investors who do not qualify for the","page_number":151,"box":{"x":101,"y":634,"width":763,"height":12}},{"id":"09ca90ba-b983-4e7d-b735-3855d563b2f9","block_type":"box","text":"reduction in initial sales charges. CDSC shares are subject to ongoing service fees and distribution fees; however,","page_number":151,"box":{"x":69,"y":649,"width":815,"height":12}},{"id":"433eb76f-54eb-4881-a16d-8bce119185e8","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":151,"box":{"x":68,"y":664,"width":813,"height":12}},{"id":"9043a2dc-9a32-4256-802f-81341bdbbc54","block_type":"box","text":"CDSC shares.","page_number":151,"box":{"x":69,"y":680,"width":97,"height":9}},{"id":"2432a73f-4955-47bc-b97a-c608245551b2","block_type":"box","text":"BlackRock compensates financial advisers and other financial intermediaries for selling CDSC shares at the time","page_number":151,"box":{"x":102,"y":702,"width":804,"height":12}},{"id":"47135be6-33b8-4eb4-a41f-05a58ef663c0","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":151,"box":{"x":69,"y":717,"width":827,"height":11}},{"id":"c6f9791b-49b1-4dcd-9120-2dfce1b064e0","block_type":"box","text":"used by the Distributor to defray the expenses of securities dealers or other financial intermediaries related to","page_number":151,"box":{"x":69,"y":732,"width":786,"height":12}},{"id":"f66e4b6b-0a04-4dfc-97e1-cb8dbe50d43c","block_type":"box","text":"providing distribution-related services to each Fund in connection with the sale of the CDSC shares. The combination","page_number":151,"box":{"x":70,"y":748,"width":831,"height":11}},{"id":"4bfcd9ea-c3a5-41a7-853f-23f9fdc06a6d","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":151,"box":{"x":69,"y":763,"width":809,"height":11}},{"id":"8991a952-ab8f-4bba-b993-38977aa2a148","block_type":"box","text":"sales charge being deducted at the time of purchase. See “Distribution and/or Shareholder Servicing Plans” below.","page_number":151,"box":{"x":69,"y":778,"width":824,"height":11}},{"id":"e8c168e8-f5c5-4d15-a342-3f63c416dce7","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":151,"box":{"x":70,"y":793,"width":822,"height":11}},{"id":"9970b5fd-7ad1-44d0-b610-0b72fe7183f8","block_type":"box","text":"sales charge rule. See “Limitations on the Payment of Deferred Sales Charges” below.","page_number":151,"box":{"x":69,"y":808,"width":618,"height":11}},{"id":"deca552c-667f-41d5-a57a-78096a0e5363","block_type":"box","text":"Dealers will generally immediately receive commissions equal to 1.00% of the Investor C Shares sold by them","page_number":151,"box":{"x":102,"y":831,"width":782,"height":11}},{"id":"f55fd1a4-5cf4-48a1-b067-6f95f424f859","block_type":"box","text":"plus ongoing fees under the Fund’s Distribution and Service Plan. Dealers may not receive a commission in","page_number":151,"box":{"x":70,"y":846,"width":764,"height":11}},{"id":"1325595b-dca0-4b00-88ce-ef23830e3bdf","block_type":"box","text":"connection with sales of Investor C Shares to cer tain employer-sponsored retirement plans sponsored by the Fund,","page_number":151,"box":{"x":69,"y":861,"width":820,"height":11}},{"id":"4a8f5ba1-f897-481a-bdaf-2352d3fcf723","block_type":"box","text":"BlackRock or its affiliates, but may receive fees under the Distribution and Service Plan. These commissions and","page_number":151,"box":{"x":70,"y":876,"width":806,"height":11}},{"id":"d3ef9a3a-fecf-4aaa-84d2-d4f7998f5d53","block_type":"box","text":"payments may be different than the reallowances, placement fees and commissions paid to dealers in connection","page_number":151,"box":{"x":70,"y":891,"width":813,"height":11}},{"id":"5fcfdda7-5ad6-4169-b1fe-7652312ee651","block_type":"box","text":"II-105","page_number":151,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"ad989a5a-1e12-4969-a6b1-4c9aeae908c5","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":151,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3185499e-0206-45e7-bee9-b6998162b9f2","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":152,"box":{"x":68,"y":45,"width":811,"height":11}},{"id":"acdeb1f4-3f76-481e-85c7-a480fd7c9428","block_type":"box","text":"trading platforms of your financial intermediary; consult your financial adviser.","page_number":152,"box":{"x":68,"y":60,"width":554,"height":11}},{"id":"8794d356-4d7b-4a59-9688-c0a83eccc1a5","block_type":"box","text":"Each Fund has adopted an automatic conversion feature for Investor C Shares. Effective November 23, 2020,","page_number":152,"box":{"x":102,"y":82,"width":783,"height":11}},{"id":"226ee1d7-5f32-4fca-a500-7011762c160b","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":152,"box":{"x":70,"y":98,"width":808,"height":11}},{"id":"683bc7cb-fbf4-49f0-8b73-c61c789229fc","block_type":"box","text":"Fund’s Prospectus. In addition, accounts that do not have a financial intermediary associated with them are not","page_number":152,"box":{"x":70,"y":113,"width":797,"height":11}},{"id":"6899889f-8b5c-4df7-a862-b738634c6cec","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":152,"box":{"x":69,"y":128,"width":837,"height":11}},{"id":"58f78666-3a01-4184-a0ce-8e008de4f55a","block_type":"box","text":"Investor A Shares.","page_number":152,"box":{"x":70,"y":143,"width":128,"height":9}},{"id":"5f399ca7-abb9-43d9-a4e9-9b6d5db8cc8a","block_type":"box","text":"Conversion of Investor C Shares to Investor A Shares","page_number":152,"box":{"x":102,"y":166,"width":378,"height":9}},{"id":"cc067a36-4f9b-4741-849e-cb2f21150e72","block_type":"box","text":"Effective November 23, 2020 (the “Effective Date”), approximately eight years after purchase, Investor C Shares","page_number":152,"box":{"x":102,"y":188,"width":804,"height":12}},{"id":"aff55177-4f20-47f7-88a3-cc4211a879ac","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":152,"box":{"x":69,"y":203,"width":794,"height":12}},{"id":"73e0bf0a-df62-472c-9bf3-f2ac42c781e5","block_type":"box","text":"Cer tain funds (the “Predecessor Funds”) were reorganized into new Funds (the “Successor Funds”) pursuant to","page_number":152,"box":{"x":69,"y":218,"width":794,"height":12}},{"id":"0f1e17f5-b86b-4ede-b888-54661b1cf645","block_type":"box","text":"reorganizations which occurred in September 2018. The holding period for Investor C Shares of Successor Funds","page_number":152,"box":{"x":69,"y":234,"width":806,"height":11}},{"id":"039513c2-9c0f-465b-8c33-9b2e5f91b716","block_type":"box","text":"includes the period such shares were held in the respective Predecessor Fund. It is the financial intermediary’s","page_number":152,"box":{"x":70,"y":249,"width":793,"height":11}},{"id":"13883aa4-8aa9-4355-a6c6-cea22bba5346","block_type":"box","text":"responsibility to ensure that the shareholder is credited with the proper holding period. As of the Effective Date,","page_number":152,"box":{"x":69,"y":264,"width":796,"height":11}},{"id":"a9dfa9e1-68d8-4f9f-be67-a85d2bf53d76","block_type":"box","text":"cer tain financial intermediaries, including group retirement recordkeeping platforms, may not have been tracking","page_number":152,"box":{"x":69,"y":279,"width":802,"height":11}},{"id":"2ff2b0a5-f3f1-4da1-8861-d8ab8a4310a4","block_type":"box","text":"such holding periods and therefore may not be able to process such conversions. In such instances, Investor C","page_number":152,"box":{"x":69,"y":294,"width":793,"height":11}},{"id":"c928dda4-45c1-4904-b5e1-b42a94e7457f","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":152,"box":{"x":69,"y":309,"width":817,"height":11}},{"id":"a31911a8-76cb-43aa-a177-5f6e9a85d8ff","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":152,"box":{"x":68,"y":324,"width":814,"height":12}},{"id":"56e0fdf7-18e1-42e9-90b9-9876f729355b","block_type":"box","text":"not implemented systems or procedures to track holding periods commencing from the Effective Date, shareholders","page_number":152,"box":{"x":69,"y":339,"width":828,"height":12}},{"id":"2635d5f7-92d8-4dac-a265-b5635a965e05","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":152,"box":{"x":69,"y":355,"width":832,"height":11}},{"id":"04033493-a2df-4876-a791-f3553a86f2e6","block_type":"box","text":"any such shares will conver t to Investor A Shares as soon as reasonably practicable after such date.","page_number":152,"box":{"x":69,"y":370,"width":718,"height":11}},{"id":"8a5de5bf-2da7-4a1e-8950-cf55198ec521","block_type":"box","text":"In addition, accounts that do not have a financial intermediary associated with them are not eligible to hold","page_number":152,"box":{"x":102,"y":392,"width":764,"height":12}},{"id":"700cae6f-29ae-401a-a691-d0cb54c62d3b","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":152,"box":{"x":70,"y":408,"width":816,"height":11}},{"id":"455883cb-51ab-4690-8ea1-0793da43298e","block_type":"box","text":"Shares (the “Investor C Direct Accounts Conversion” and together with the Investor C 8-Year Conversion, the","page_number":152,"box":{"x":69,"y":423,"width":772,"height":11}},{"id":"1b43f9d0-bf0b-468b-ac7a-ab04afaf1c65","block_type":"box","text":"“Investor C Conversions”).","page_number":152,"box":{"x":70,"y":438,"width":186,"height":11}},{"id":"5f70f745-6c65-4619-90cc-2f570a6248a0","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":152,"box":{"x":101,"y":460,"width":776,"height":11}},{"id":"daac064d-287e-472c-9236-078989c9bd6e","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":152,"box":{"x":69,"y":475,"width":824,"height":11}},{"id":"c304d295-6ca0-4e4e-8d49-07f866eee53c","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":152,"box":{"x":70,"y":491,"width":827,"height":11}},{"id":"5a7ab53f-381e-48a5-8308-f1ca92121137","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":152,"box":{"x":69,"y":506,"width":833,"height":11}},{"id":"445709d9-8664-46ea-bb78-e7c87c5b08aa","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":152,"box":{"x":69,"y":521,"width":818,"height":11}},{"id":"01388e0d-b54f-43ef-a264-f22e1edb92b9","block_type":"box","text":"Conversion Date for dividend reinvestment shares will be calculated taking into account the length of time the shares","page_number":152,"box":{"x":69,"y":536,"width":836,"height":11}},{"id":"5c4569cf-9052-4a17-aabf-9c9f43950e54","block_type":"box","text":"underlying the dividend reinvestment shares were outstanding.","page_number":152,"box":{"x":69,"y":551,"width":445,"height":11}},{"id":"02a554ff-d030-43d2-83a6-7e0dadd980d2","block_type":"box","text":"Contingent Deferred Sales Charge — Investor C Shares","page_number":152,"box":{"x":102,"y":574,"width":396,"height":11}},{"id":"b3fac8e8-c3b6-47ae-a635-1fde63e4bc01","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":152,"box":{"x":102,"y":596,"width":804,"height":12}},{"id":"054055f8-5c3e-486a-aa3e-552d6556569c","block_type":"box","text":"percentage of the dollar amount subject thereto. In determining whether an Investor C Shares CDSC is applicable to","page_number":152,"box":{"x":70,"y":612,"width":826,"height":11}},{"id":"41e6bd1e-164b-4a60-b09d-ae82dd6db602","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":152,"box":{"x":69,"y":627,"width":837,"height":11}},{"id":"906ce967-5c36-427d-8e1e-31d8127e31ac","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":152,"box":{"x":68,"y":642,"width":795,"height":11}},{"id":"d1a47981-5c9b-417e-b8cf-74ceedba601b","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":152,"box":{"x":69,"y":657,"width":840,"height":11}},{"id":"5e1f616a-d668-4834-b629-03d5948523e7","block_type":"box","text":"Investor C Shares. In addition, no CDSC will be assessed on Investor C Shares acquired through reinvestment of","page_number":152,"box":{"x":70,"y":672,"width":804,"height":11}},{"id":"d7d7a727-aa48-4733-8438-4a62b8fdf23a","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":152,"box":{"x":69,"y":687,"width":772,"height":11}},{"id":"60670668-9893-4f03-9dc4-0080ebe265b3","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":152,"box":{"x":70,"y":702,"width":790,"height":12}},{"id":"e128e2c5-c715-4a09-a067-45ff21f5b811","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":152,"box":{"x":69,"y":717,"width":776,"height":9}},{"id":"9a8b8b7b-285f-4af9-b702-5e957d014d62","block_type":"box","text":"redemption.","page_number":152,"box":{"x":69,"y":733,"width":83,"height":10}},{"id":"985585fd-eef0-4f0f-a8db-14f15fab1edc","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":152,"box":{"x":102,"y":755,"width":734,"height":11}},{"id":"e5a0ea9a-9a29-4a79-8f02-7aa807830ff4","block_type":"box","text":"information about amounts paid to the Distributor in connection with CDSC shares for the periods indicated.","page_number":152,"box":{"x":70,"y":770,"width":769,"height":11}},{"id":"5ed36619-9dc0-4a96-a18c-185619565377","block_type":"box","text":"Investor C Shares — Contingent Deferred Sales Charge Waivers and Reductions","page_number":152,"box":{"x":102,"y":793,"width":572,"height":11}},{"id":"6e7c58c0-87bf-4b4d-9f1c-c3fd61bcd6c3","block_type":"box","text":"The CDSC on Investor C Shares is not charged in connection with: (1) redemptions of Investor C Shares","page_number":152,"box":{"x":101,"y":816,"width":740,"height":11}},{"id":"8456df21-f2c0-4955-84f6-97aa34a7cbc3","block_type":"box","text":"purchased through cer tain employer-sponsored retirement plans and fee-based programs previously approved by","page_number":152,"box":{"x":70,"y":831,"width":802,"height":11}},{"id":"76c4909d-20b2-4006-ae71-b60d55e4fe00","block_type":"box","text":"cer tain Funds and rollovers of current investments in the Fund through such plans; (2) exchanges described in","page_number":152,"box":{"x":69,"y":846,"width":786,"height":11}},{"id":"3cbdd87e-f90e-4055-b54a-961b4637dc3f","block_type":"box","text":"“Exchange Privilege” below; (3) redemptions made in connection with minimum required distributions due to the","page_number":152,"box":{"x":70,"y":861,"width":797,"height":11}},{"id":"4f383c85-2e1f-4153-b2f6-9320b98c5d8f","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":152,"box":{"x":69,"y":876,"width":776,"height":11}},{"id":"d73c3664-119e-46ce-8a64-08b2e78e3a57","block_type":"box","text":"retirement plans sponsored by the Fund, BlackRock or its affiliates; (5) redemptions in connection with a","page_number":152,"box":{"x":69,"y":891,"width":747,"height":11}},{"id":"bc695f68-610e-4bcb-8dd2-618b64787f83","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":152,"box":{"x":69,"y":906,"width":822,"height":12}},{"id":"25e8aad1-6dde-4112-a1cd-6b1ed8450111","block_type":"box","text":"II-106","page_number":152,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"a1ed5a02-1f6f-4277-a5b0-9d5d39e0bc67","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":152,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8a4cfe1d-7d9b-405d-a3c5-facb096764ac","block_type":"box","text":"following completion of probate (including in connection with the distribution of account assets to a beneficiary of the","page_number":153,"box":{"x":68,"y":45,"width":836,"height":11}},{"id":"1fda3dd0-4775-411e-b123-6e822f615969","block_type":"box","text":"decedent) or disability (as defined in the Code) subsequent to the purchase of Investor C Shares; (6) withdrawals","page_number":153,"box":{"x":69,"y":60,"width":806,"height":11}},{"id":"6f5b7bb5-32ee-4bd4-8efe-3ae02e5c8e35","block_type":"box","text":"resulting from shareholder disability (as defined in the Code) as long as the disability arose subsequent to the","page_number":153,"box":{"x":69,"y":75,"width":786,"height":11}},{"id":"32adb337-2223-400e-a249-8195d93fa152","block_type":"box","text":"purchase of the shares; (7) involuntary redemptions of Investor C Shares in accounts with low balances as described","page_number":153,"box":{"x":70,"y":90,"width":834,"height":11}},{"id":"7ca087f6-31eb-45ec-8636-180b5342b0e1","block_type":"box","text":"in “Redemption of Shares” below; (8) redemptions made pursuant to a systematic withdrawal plan, subject to the","page_number":153,"box":{"x":70,"y":105,"width":809,"height":11}},{"id":"9a28391c-14e2-476d-b3f0-db10d0bee019","block_type":"box","text":"limitations set for th under “Systematic Withdrawal Plan” below; (9) redemptions related to the payment of BNY","page_number":153,"box":{"x":70,"y":120,"width":791,"height":11}},{"id":"890ef6b3-923a-4486-aceb-00c0f3ef2f9a","block_type":"box","text":"Mellon Investment Servicing Trust Company custodial IRA fees; and (10) redemptions when a shareholder can","page_number":153,"box":{"x":70,"y":135,"width":784,"height":12}},{"id":"2a844571-9778-4a3d-97e8-df175abfa8f3","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":153,"box":{"x":69,"y":150,"width":824,"height":12}},{"id":"002e7100-59c8-4ca0-a02f-e9a7b9823435","block_type":"box","text":"acquired through the reinvestment of dividends or distributions.","page_number":153,"box":{"x":69,"y":166,"width":451,"height":11}},{"id":"2480ac0d-ba66-44f6-a4c8-d3e9d89f7e79","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":153,"box":{"x":102,"y":188,"width":781,"height":11}},{"id":"ae171cb9-ae89-4840-bbfc-53e8d7c0bb38","block_type":"box","text":"intermediaries, as described under “Intermediary-Defined Sales Charge Waiver Policies” in the Fund’s Prospectus.","page_number":153,"box":{"x":70,"y":203,"width":813,"height":12}},{"id":"e1166f96-6f59-4027-8e3a-94b7f8903e27","block_type":"box","text":"Please speak to your financial intermediary for more information.","page_number":153,"box":{"x":69,"y":218,"width":462,"height":12}},{"id":"91636801-4f06-40f2-aca4-5a2d14f649aa","block_type":"box","text":"Class R Shares","page_number":153,"box":{"x":69,"y":249,"width":110,"height":9}},{"id":"39c5db2b-4597-4b11-9209-56d2e83a0490","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":153,"box":{"x":102,"y":271,"width":775,"height":11}},{"id":"aebdfa29-5424-4e46-aea6-c4d1fcb3b5e2","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":153,"box":{"x":69,"y":287,"width":799,"height":11}},{"id":"eea33b61-c50b-4d63-9d67-35be4fac5083","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":153,"box":{"x":69,"y":302,"width":801,"height":11}},{"id":"8939c01e-55cc-40ca-8d0b-6e4860c1c70a","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":153,"box":{"x":69,"y":317,"width":772,"height":11}},{"id":"e4292872-0f5d-4b4c-983a-d08de57c9250","block_type":"box","text":"compensating financial advisers and other financial intermediaries, adver tising and promotion. Service fees are used","page_number":153,"box":{"x":69,"y":332,"width":836,"height":11}},{"id":"cf5459e5-751d-4977-ac5f-0ebff6558c84","block_type":"box","text":"to compensate securities dealers and other financial intermediaries for service activities.","page_number":153,"box":{"x":68,"y":347,"width":636,"height":11}},{"id":"b3525f42-7eda-49e1-9b4d-deb3e837b869","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":153,"box":{"x":102,"y":370,"width":791,"height":11}},{"id":"41762883-0130-4ba0-b6e6-09c74df3dc61","block_type":"box","text":"have paid as a shareholder of one of the other share classes.","page_number":153,"box":{"x":69,"y":385,"width":440,"height":11}},{"id":"7720f474-2124-409a-8119-6160bae2028d","block_type":"box","text":"Class K Shares","page_number":153,"box":{"x":69,"y":415,"width":109,"height":9}},{"id":"fe6804a4-6e1f-4069-bb76-ee073b349197","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":153,"box":{"x":102,"y":438,"width":797,"height":11}},{"id":"7be6661f-ab2e-467f-a954-342c46537d69","block_type":"box","text":"only to (i) cer tain employee benefit plans, such as health savings accounts, and cer tain employer-sponsored","page_number":153,"box":{"x":69,"y":453,"width":772,"height":11}},{"id":"68649d63-935d-4ac2-8bdc-7cfe943a38d6","block_type":"box","text":"retirement plans (not including SEP IRAs, SIMPLE IRAs and SARSEPs) (collectively, “Employer-Sponsored Retirement","page_number":153,"box":{"x":69,"y":468,"width":827,"height":11}},{"id":"cafab4d4-1e0d-42fb-a08e-1fe922cf1fd7","block_type":"box","text":"Plans”), (ii) collective trust funds, investment companies and other pooled investment vehicles, each of which may","page_number":153,"box":{"x":69,"y":483,"width":817,"height":11}},{"id":"3786672c-3822-43cc-b48e-203c3c19c781","block_type":"box","text":"purchase shares of the Fund through a financial intermediary that has entered into an agreement with the Distributor","page_number":153,"box":{"x":70,"y":498,"width":834,"height":11}},{"id":"3cbbb1f6-6f66-4286-8df9-029653a7ce24","block_type":"box","text":"to purchase such shares, (iii) “Institutional Investors,” which include but are not limited to, endowments,","page_number":153,"box":{"x":68,"y":514,"width":748,"height":10}},{"id":"84cf4001-5bfc-47f4-ad40-bffa19b9188e","block_type":"box","text":"foundations, family offices, banks and bank trusts, local, city, and state governmental institutions, corporations and","page_number":153,"box":{"x":68,"y":528,"width":828,"height":12}},{"id":"991eb35b-bf64-46ec-9061-04cfd97e2725","block_type":"box","text":"insurance company separate accounts, each of which may purchase shares of the Fund through a financial","page_number":153,"box":{"x":70,"y":543,"width":760,"height":12}},{"id":"7a1d5c0a-f24c-444a-82ec-d5e2bb85dba2","block_type":"box","text":"intermediary that has entered into an agreement with the Distributor to purchase such shares, (iv) clients of private","page_number":153,"box":{"x":70,"y":559,"width":823,"height":11}},{"id":"deec6782-edf0-426a-92d5-5748c0dd739f","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":153,"box":{"x":69,"y":574,"width":836,"height":11}},{"id":"ee8e66a1-1a77-4558-8a83-cbd740f0c55f","block_type":"box","text":"Distributor to sell such shares; (v) fee-based advisory platforms of a financial intermediary that (a) has specifically","page_number":153,"box":{"x":70,"y":589,"width":814,"height":11}},{"id":"e713dcdd-b265-44b0-a4f8-08039abb7787","block_type":"box","text":"acknowledged in a written agreement with the Distributor and/or its affiliate(s) that the financial intermediary shall","page_number":153,"box":{"x":69,"y":604,"width":817,"height":11}},{"id":"c5f11ea2-d247-485f-bdab-b6653f9f0399","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":153,"box":{"x":69,"y":619,"width":823,"height":11}},{"id":"63ef1d8e-7f68-4038-a1f7-aa6b7b52ab69","block_type":"box","text":"Fund’s shares through another intermediary that has executed such an agreement and (vi) any other investors who","page_number":153,"box":{"x":70,"y":634,"width":818,"height":12}},{"id":"bfc4c146-ab05-49d2-adcc-d98de49ac6a8","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":153,"box":{"x":69,"y":649,"width":833,"height":12}},{"id":"fa0b7d72-1f4b-45a2-a834-8b98e6aa1477","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":153,"box":{"x":69,"y":664,"width":807,"height":12}},{"id":"389585de-d4d3-44a1-8c32-aedd0319b4e4","block_type":"box","text":"agreement referenced in (iv) above shall appear in a supplemental agreement to any selling, sub-transfer agent, or","page_number":153,"box":{"x":69,"y":680,"width":817,"height":11}},{"id":"8372b42f-5cdd-48fb-9e5a-d8e6b5a3626d","block_type":"box","text":"distribution and marketing agreement.","page_number":153,"box":{"x":69,"y":695,"width":270,"height":11}},{"id":"4b920045-db9c-4235-aa9c-648b4488c31b","block_type":"box","text":"Class K Shares are also available to employees, officers and directors/trustees of BlackRock, Inc. and","page_number":153,"box":{"x":102,"y":717,"width":734,"height":12}},{"id":"913eee35-8cf5-475c-9481-d0733b3d5300","block_type":"box","text":"BlackRock Funds and immediate family members of such persons, if they open an account directly with BlackRock.","page_number":153,"box":{"x":70,"y":732,"width":817,"height":12}},{"id":"39bcfa3f-c851-4c85-91dc-770c7b0a0c13","block_type":"box","text":"Eligible individuals who would like to conver t existing holdings to Class K Shares must contact BlackRock.","page_number":153,"box":{"x":70,"y":748,"width":753,"height":11}},{"id":"0ab08c81-0d9b-45d8-b50c-68f482df6c65","block_type":"box","text":"Class G Shares","page_number":153,"box":{"x":69,"y":778,"width":110,"height":9}},{"id":"42c2756b-9d59-4b4f-938f-a2f2b1660b04","block_type":"box","text":"Cer tain Funds offer Class G Shares, which are available only to investors on eligible platforms. Eligible platforms","page_number":153,"box":{"x":102,"y":801,"width":804,"height":11}},{"id":"37d29ec2-d3a7-4692-8ba0-12bb36e3b735","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":153,"box":{"x":69,"y":816,"width":826,"height":11}},{"id":"bb220a95-34d8-4edf-bad0-cc1b2c95b62d","block_type":"box","text":"that meets an initial investment minimum of $2 billion. For clients investing through such eligible platforms, the Fund","page_number":153,"box":{"x":68,"y":830,"width":836,"height":12}},{"id":"fd9fcdea-081f-45ea-8bb1-278b9df0373d","block_type":"box","text":"does not impose investment minimums on any individual investor. Financial intermediaries may impose separate","page_number":153,"box":{"x":69,"y":846,"width":803,"height":11}},{"id":"d2308832-d3d5-4f80-a6a0-239c455e8308","block_type":"box","text":"eligibility requirements.","page_number":153,"box":{"x":69,"y":861,"width":164,"height":11}},{"id":"a321aa64-742a-4245-b538-018f9f3331d6","block_type":"box","text":"II-107","page_number":153,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"d704a10b-a0a7-4d82-842f-1ba7f53f0e18","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":153,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6573e55f-5f71-412d-86b6-c4acdb1081b0","block_type":"box","text":"Service Shares","page_number":154,"box":{"x":68,"y":45,"width":109,"height":9}},{"id":"4cfba44f-9b31-4175-9164-327ac97e71ee","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":154,"box":{"x":102,"y":67,"width":788,"height":12}},{"id":"16ac5346-2e91-4b0b-95c1-5f4dcd011f77","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":154,"box":{"x":70,"y":82,"width":815,"height":12}},{"id":"0757ed43-0190-4d04-9f53-8e723b7acf96","block_type":"box","text":"shareholders of the Compass Capital Group of Funds at the time of its combination with The PNC","page_number":154,"box":{"x":69,"y":98,"width":693,"height":11}},{"id":"59b6a232-83c0-4400-ac29-a6e7f674d34f","block_type":"box","text":"®","page_number":154,"box":{"x":763,"y":98,"width":6,"height":4}},{"id":"84367525-8751-4c18-826f-844bb9d77f38","block_type":"box","text":"Fund in 1996; and","page_number":154,"box":{"x":775,"y":98,"width":130,"height":10}},{"id":"6d469456-b55e-4424-9ddc-7341d865ff2c","block_type":"box","text":"(iii) par ticipants in the Capital Directions","page_number":154,"box":{"x":69,"y":113,"width":287,"height":11}},{"id":"b4d5cb2c-ed79-4dd4-9df3-eca730616d6e","block_type":"box","text":"SM","page_number":154,"box":{"x":357,"y":113,"width":11,"height":5}},{"id":"86d2827b-1f3e-4035-8224-4885c538d3c3","block_type":"box","text":"asset allocation program. Service Shares are not subject to an initial sales","page_number":154,"box":{"x":374,"y":113,"width":534,"height":11}},{"id":"9c03e009-9607-4612-bbf4-2e154b45deef","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":154,"box":{"x":69,"y":128,"width":776,"height":11}},{"id":"bfbbec04-c4b4-48e7-8757-1449684d3c6f","block_type":"box","text":"BlackRock Shares","page_number":154,"box":{"x":69,"y":158,"width":133,"height":9}},{"id":"4b821126-d9ba-4dd2-96b9-a48f7963fd78","block_type":"box","text":"Cer tain Funds offer BlackRock Shares, which are available only to cer tain investors. BlackRock Shares are","page_number":154,"box":{"x":102,"y":181,"width":760,"height":11}},{"id":"a731c17c-cedf-4677-9a82-bba8c17e2dc6","block_type":"box","text":"offered without a sales charge to institutional and individual investors, registered investment advisers and cer tain","page_number":154,"box":{"x":69,"y":196,"width":813,"height":11}},{"id":"7ed7f7aa-e260-4f78-b5aa-c882a09ae9bd","block_type":"box","text":"fee-based programs.","page_number":154,"box":{"x":68,"y":211,"width":145,"height":11}},{"id":"ab9746f8-87f7-47b2-a811-59d0e9d5a6af","block_type":"box","text":"Distribution and/or Shareholder Servicing Plans","page_number":154,"box":{"x":69,"y":241,"width":348,"height":11}},{"id":"b78d8dcb-0485-4fd8-a0d8-dd7d19e7e042","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":154,"box":{"x":102,"y":264,"width":790,"height":11}},{"id":"86c1cf8c-35d9-416f-a54b-e07e22cf2ae0","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":154,"box":{"x":69,"y":279,"width":761,"height":11}},{"id":"23783f22-c15b-4700-8f05-9481ee8a3c26","block_type":"box","text":"shareholder servicing fees for cer tain services provided to its shareholders.","page_number":154,"box":{"x":69,"y":294,"width":541,"height":11}},{"id":"7a0c50b5-66d6-40b3-8b5a-dba46c7c35c6","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":154,"box":{"x":102,"y":317,"width":803,"height":11}},{"id":"81531eb1-3d27-4040-a300-4b690d52528a","block_type":"box","text":"BlackRock, fees for distribution and sales suppor t services with respect to Investor A, Investor A1, Investor C,","page_number":154,"box":{"x":70,"y":332,"width":783,"height":11}},{"id":"6b181a15-ce24-4b20-9141-7c0cd2ecd550","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":154,"box":{"x":70,"y":347,"width":809,"height":11}},{"id":"ce07dcc5-bc02-4f00-8a62-2f9a52cd212f","block_type":"box","text":"bear the expense of distribution fees under a Plan.","page_number":154,"box":{"x":69,"y":362,"width":360,"height":11}},{"id":"535749cd-6e6b-478f-8eab-3cd52be06da6","block_type":"box","text":"Each Fund has entered into a distribution agreement with BRIL under which BRIL, as agent, offers shares of","page_number":154,"box":{"x":102,"y":385,"width":770,"height":11}},{"id":"d0f10af9-65a4-4fd4-8028-fe1b0f7c12be","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":154,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"b68d56be-12b8-4030-a25f-8816785dd6f4","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":154,"box":{"x":69,"y":415,"width":812,"height":11}},{"id":"0ed04a65-735c-4c2d-96ed-862269b74db7","block_type":"box","text":"York, NY 10001. BRIL is an affiliate of BlackRock.","page_number":154,"box":{"x":68,"y":430,"width":355,"height":11}},{"id":"bae520ab-03a3-4b24-a9d2-8df4cdf88fa3","block_type":"box","text":"Pursuant to the Plans, each Fund may also pay shareholder servicing fees (also referred to as general","page_number":154,"box":{"x":102,"y":453,"width":727,"height":11}},{"id":"971708d6-21fb-4726-bc36-f9b31d169df1","block_type":"box","text":"shareholder liaison services fees) to affiliated and unaffiliated brokers, dealers, financial institutions, insurance","page_number":154,"box":{"x":69,"y":468,"width":799,"height":11}},{"id":"59a3623b-2832-451a-8e04-5c5e19857b19","block_type":"box","text":"companies, retirement plan record-keepers and other financial intermediaries (including BlackRock, BRIL and their","page_number":154,"box":{"x":69,"y":483,"width":813,"height":11}},{"id":"9fae35e0-c758-4f19-9842-7372df09a1fa","block_type":"box","text":"affiliates) (collectively, “Service Organizations”) for cer tain suppor t services rendered by Service Organizations to","page_number":154,"box":{"x":69,"y":498,"width":809,"height":11}},{"id":"143b08b6-5ce9-43b0-b064-cae37b9fcdd9","block_type":"box","text":"their customers (“Customers”) who are the beneficial owners of Investor A, Investor A1, Investor C, Investor P,","page_number":154,"box":{"x":68,"y":513,"width":786,"height":11}},{"id":"6f2ebc2a-151f-4c07-898c-b588dd813e49","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":154,"box":{"x":69,"y":528,"width":789,"height":12}},{"id":"722addac-a11a-42e7-9849-316e4277b1d8","block_type":"box","text":"Fund’s Administrators and Transfer Agent to the Fund’s shareholders of record.","page_number":154,"box":{"x":70,"y":543,"width":562,"height":12}},{"id":"91a88423-da93-4e60-a035-6ff5445b2907","block_type":"box","text":"The suppor t services provided by Service Organizations are general shareholder liaison services, which include,","page_number":154,"box":{"x":101,"y":566,"width":798,"height":11}},{"id":"1aa71418-aa21-4f5b-9aa3-54aad1fb26b5","block_type":"box","text":"but are not limited to: (i) answering Customer inquiries regarding account status and history, the manner in which","page_number":154,"box":{"x":69,"y":581,"width":808,"height":12}},{"id":"6e2c784d-24f8-41ec-a323-520355772200","block_type":"box","text":"purchases, exchanges and redemptions or repurchases of shares may be effected and cer tain other matters","page_number":154,"box":{"x":70,"y":596,"width":776,"height":12}},{"id":"c6f43283-39f2-495c-bf93-b21766e9ffb4","block_type":"box","text":"per taining to the Customers’ investments; and (ii) assisting Customers in designating and changing dividend options,","page_number":154,"box":{"x":70,"y":612,"width":835,"height":11}},{"id":"be0e02b9-93ed-444d-a5bb-9a18a4dc9869","block_type":"box","text":"account designations and addresses. The shareholder servicing fees payable pursuant to the Plans are paid to","page_number":154,"box":{"x":69,"y":627,"width":791,"height":11}},{"id":"6a461568-4924-4b1a-8153-a4057ae0f271","block_type":"box","text":"compensate Service Organizations for the administration and servicing of shareholder accounts and are not costs","page_number":154,"box":{"x":69,"y":642,"width":813,"height":11}},{"id":"b701b249-a9db-4c8c-bba4-c65134176db7","block_type":"box","text":"which are primarily intended to result in the sale of the Fund’s shares.","page_number":154,"box":{"x":68,"y":657,"width":501,"height":11}},{"id":"cc5ed7e1-ab28-47f4-bb14-0f26ea18c8b8","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":154,"box":{"x":102,"y":680,"width":783,"height":11}},{"id":"99301e7d-c91b-4f3a-aaed-d6a768f50c32","block_type":"box","text":"the applicable share class regardless of the amount of expenses incurred. As a result, payments under the Plans","page_number":154,"box":{"x":68,"y":695,"width":810,"height":11}},{"id":"df43561c-4838-4ced-bacb-ad0c67e4e54b","block_type":"box","text":"may be more or less than expenses incurred in connection with providing distribution and/or shareholder services","page_number":154,"box":{"x":69,"y":710,"width":813,"height":11}},{"id":"4d0fd473-eac7-4288-baae-e72bca932432","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":154,"box":{"x":68,"y":725,"width":836,"height":11}},{"id":"77a1a000-2bc7-4997-b341-6ea6de6b6c02","block_type":"box","text":"providing services with respect to the related class is presented to the Directors for their consideration quar terly.","page_number":154,"box":{"x":70,"y":740,"width":805,"height":11}},{"id":"49f6c727-b0b3-4232-ad85-eeef78fc0035","block_type":"box","text":"Payments under the Plans consist of the shareholder servicing fees and the distribution fees. Expenses with respect","page_number":154,"box":{"x":69,"y":755,"width":832,"height":11}},{"id":"c52689a9-40ce-402c-bc0b-70bfc89d1e53","block_type":"box","text":"to providing distribution and/or shareholder services with respect to a class may consist of Service Organization","page_number":154,"box":{"x":68,"y":770,"width":803,"height":12}},{"id":"02ff9b32-bf32-4008-8c86-eb7b2b5fe2ac","block_type":"box","text":"financial adviser compensation, branch office and regional operation center selling and transaction processing","page_number":154,"box":{"x":68,"y":785,"width":788,"height":12}},{"id":"23ee49f2-b172-4c99-aa3d-d56288d5f0fd","block_type":"box","text":"expenses, adver tising, sales promotion and marketing expenses. Payments under the Plans with respect to one","page_number":154,"box":{"x":69,"y":801,"width":798,"height":11}},{"id":"ef67e28e-e021-4ec3-8348-08db85efb4fb","block_type":"box","text":"class will not be used to finance the expenditures of another class. Sales personnel may receive different","page_number":154,"box":{"x":69,"y":816,"width":755,"height":11}},{"id":"85946434-3192-4076-a0da-a2d0238f2e06","block_type":"box","text":"compensation for selling different classes of shares.","page_number":154,"box":{"x":69,"y":831,"width":375,"height":11}},{"id":"7c61e809-1ca1-4c2d-98bb-ca29059e9478","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":154,"box":{"x":102,"y":853,"width":803,"height":12}},{"id":"805c2716-b6f0-401c-a374-c8725df95860","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":154,"box":{"x":69,"y":869,"width":839,"height":11}},{"id":"7915d11d-79be-4f1d-971f-6dd763fe69f6","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":154,"box":{"x":68,"y":884,"width":788,"height":11}},{"id":"d991a4ae-5a14-41d9-b459-6a839a08a9d0","block_type":"box","text":"interested Directors concluded that there is reasonable likelihood that the Plan will benefit the Fund and its related","page_number":154,"box":{"x":70,"y":899,"width":818,"height":9}},{"id":"38bd48fc-b357-45b4-98d4-5740265ee0bf","block_type":"box","text":"II-108","page_number":154,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"8db00b43-4dce-40ae-a9d2-a87abe737925","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":154,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6d9505a3-b937-47b3-b7d8-a232fdc2929e","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":155,"box":{"x":69,"y":45,"width":824,"height":11}},{"id":"bd747cac-aa99-4a06-8ab1-3e8104dbf1d5","block_type":"box","text":"repor ts regarding the amounts expended under the Plan and the purposes for which such expenditures were made;","page_number":155,"box":{"x":69,"y":60,"width":821,"height":11}},{"id":"9bb6253b-fbb1-4208-8157-96fb0267573c","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":155,"box":{"x":69,"y":75,"width":778,"height":11}},{"id":"fc4c5b81-02ca-425c-9d8e-80848825ec97","block_type":"box","text":"Directors, including the directors who are not “interested persons” of the Fund (as defined in the Investment","page_number":155,"box":{"x":70,"y":90,"width":773,"height":11}},{"id":"f56af2f4-6592-4a4e-b457-d814e246d2e5","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":155,"box":{"x":69,"y":105,"width":796,"height":11}},{"id":"c9a80783-b819-4f34-8376-798e27329108","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":155,"box":{"x":69,"y":120,"width":837,"height":12}},{"id":"78cc04ab-1d1c-427a-ae99-2cea4496192a","block_type":"box","text":"in accordance with Rule 12b-1 under the Investment Company Act; (iii) any material amendment thereto must be","page_number":155,"box":{"x":70,"y":135,"width":801,"height":11}},{"id":"3e77e923-1be2-4744-9d51-d45ea7460d3b","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":155,"box":{"x":69,"y":150,"width":787,"height":12}},{"id":"cd229908-9b9d-4968-b070-8f656b07d719","block_type":"box","text":"purpose; (iv) any amendment to increase materially the costs which any class of shares may bear for distribution","page_number":155,"box":{"x":70,"y":166,"width":802,"height":11}},{"id":"4a390bdb-9b60-4449-9fcb-cff606775b6d","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":155,"box":{"x":69,"y":181,"width":826,"height":11}},{"id":"3b0fabdd-8689-4e0f-b7be-9a140392bcea","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":155,"box":{"x":69,"y":196,"width":836,"height":11}},{"id":"bcdd5f5d-2cac-4691-ae5a-10c774f45d1e","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":155,"box":{"x":69,"y":211,"width":836,"height":11}},{"id":"7dbe82df-25df-4d88-8d09-07c713be059e","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":155,"box":{"x":68,"y":226,"width":792,"height":11}},{"id":"081e9567-e2b5-4185-b9a7-9b3bd1fb8fcf","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":155,"box":{"x":70,"y":241,"width":831,"height":11}},{"id":"7b090889-13b9-49a7-890c-768cac13c32d","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":155,"box":{"x":69,"y":256,"width":807,"height":11}},{"id":"71e17e9a-3f70-4f6e-8e24-1ee85178eb84","block_type":"box","text":"easily accessible place.","page_number":155,"box":{"x":69,"y":272,"width":167,"height":11}},{"id":"44345bb5-bf68-42ea-9094-e083ffbf017f","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":155,"box":{"x":102,"y":294,"width":804,"height":11}},{"id":"68142df1-dff1-4330-8497-6412cfc13f57","block_type":"box","text":"Directors, or by vote of the holders of a majority of the shares of such class.","page_number":155,"box":{"x":70,"y":309,"width":542,"height":11}},{"id":"90cc2af7-1ab6-45f7-8967-d3c5648371bc","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Par t I of each Fund’s SAI for","page_number":155,"box":{"x":102,"y":332,"width":734,"height":11}},{"id":"183a9061-4202-4bbf-b9b0-52619e64d137","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":155,"box":{"x":70,"y":347,"width":814,"height":11}},{"id":"bd923d5c-bbca-4e02-8625-5090503c6220","block_type":"box","text":"fiscal year.","page_number":155,"box":{"x":68,"y":362,"width":75,"height":11}},{"id":"272f8341-b824-46af-8906-3a152f329807","block_type":"box","text":"Limitations on the Payment of Deferred Sales Charges","page_number":155,"box":{"x":69,"y":392,"width":396,"height":11}},{"id":"3f78ff38-2b02-43be-ab0d-3c0cf5a7d52a","block_type":"box","text":"The maximum sales charge rule in the Conduct Rules of the Financial Industry Regulatory Authority (“FINRA”)","page_number":155,"box":{"x":101,"y":415,"width":777,"height":11}},{"id":"cc555610-f637-469d-80b1-3badb3daf8c8","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":155,"box":{"x":70,"y":430,"width":835,"height":11}},{"id":"7e8ee8cb-f876-4c52-83c2-4c9a89f18fc5","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":155,"box":{"x":68,"y":445,"width":822,"height":11}},{"id":"8f366362-318c-4091-a412-2c655dadb01e","block_type":"box","text":"servicing fee. The maximum sales charge rule is applied separately to each class and limits the aggregate of","page_number":155,"box":{"x":69,"y":460,"width":778,"height":12}},{"id":"06cd329b-5a12-48d5-ba80-ecec4ae07b28","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":155,"box":{"x":69,"y":475,"width":840,"height":12}},{"id":"5d1a54f2-986e-447f-bedc-b84a4d5da4ba","block_type":"box","text":"Shares, computed separately (excluding shares issued pursuant to dividend reinvestments and exchanges), plus","page_number":155,"box":{"x":69,"y":491,"width":803,"height":11}},{"id":"8ecbee82-f330-447f-8f3d-5fbcc0c5fbef","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":155,"box":{"x":69,"y":506,"width":794,"height":11}},{"id":"f2f406dc-be13-407d-ab99-d5227d4de9a1","block_type":"box","text":"unpaid balance being the maximum amount payable minus amounts received from the payment of the distribution fee","page_number":155,"box":{"x":69,"y":521,"width":839,"height":11}},{"id":"bc903079-373c-4397-b339-096c475e2dc9","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":155,"box":{"x":69,"y":536,"width":824,"height":11}},{"id":"37a1ae7a-e3f2-4c57-a20c-3492bfe9e472","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":155,"box":{"x":68,"y":551,"width":839,"height":11}},{"id":"db8979f6-7773-4025-8fd7-7583bdb667cc","block_type":"box","text":"and Class R Shares of your Fund.","page_number":155,"box":{"x":69,"y":566,"width":236,"height":11}},{"id":"e0f8427f-3d43-45e2-a8ff-d88deb7e264e","block_type":"box","text":"Other Payments by the Fund","page_number":155,"box":{"x":69,"y":597,"width":206,"height":11}},{"id":"7acd7e15-7cf8-4725-bcf6-0c0f6d5a6f88","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":155,"box":{"x":102,"y":619,"width":800,"height":11}},{"id":"4d621958-0340-4717-ab2a-6e527205f46c","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":155,"box":{"x":68,"y":634,"width":816,"height":12}},{"id":"2a30fb39-1ca7-4853-a60d-f423796f3ed2","block_type":"box","text":"Service Organizations pursuant to which the Fund will pay a Service Organization for administrative, networking,","page_number":155,"box":{"x":69,"y":649,"width":794,"height":12}},{"id":"0eed37c4-ca80-4231-ab3d-8b8a8f734391","block_type":"box","text":"recordkeeping, sub-transfer agency, sub-accounting and/or shareholder services. These non-Plan payments are","page_number":155,"box":{"x":69,"y":664,"width":792,"height":12}},{"id":"8666599f-af04-4adf-8942-bdce6461565e","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":155,"box":{"x":68,"y":680,"width":841,"height":11}},{"id":"615c62aa-c379-407a-b1ef-f93c8494ef62","block_type":"box","text":"Organization or (2) a fixed dollar amount for each account serviced by a Service Organization. The aggregate amount","page_number":155,"box":{"x":69,"y":695,"width":831,"height":11}},{"id":"a2748f1c-db58-4f5b-a6a3-dd2940faa8b3","block_type":"box","text":"of these payments may be substantial.","page_number":155,"box":{"x":69,"y":710,"width":276,"height":11}},{"id":"e507472b-aeb7-4e7a-9935-cff3af1b2a90","block_type":"box","text":"Additional Payments by BlackRock","page_number":155,"box":{"x":68,"y":740,"width":256,"height":11}},{"id":"2eff2f85-d4ef-4511-8e5a-aba6d231ace4","block_type":"box","text":"From time to time, BlackRock, BRIL and/or their affiliates (referred to in this section collectively as “BlackRock”)","page_number":155,"box":{"x":102,"y":763,"width":803,"height":11}},{"id":"9bfb62a6-c572-4f50-a611-780c001ce0f6","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":155,"box":{"x":69,"y":778,"width":823,"height":11}},{"id":"946f1984-c2b8-49c0-a951-d31743d7c98a","block_type":"box","text":"its shareholders and/or for data provision or technology suppor t. A Service Organization may per form these","page_number":155,"box":{"x":70,"y":793,"width":768,"height":11}},{"id":"b0040415-8802-4b41-8191-289d99077c1e","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":155,"box":{"x":69,"y":808,"width":830,"height":11}},{"id":"1e25b6eb-96f3-4396-b76f-e5372816d525","block_type":"box","text":"a Plan or otherwise paid by a Fund, are referred to as “Additional Payments” herein.","page_number":155,"box":{"x":69,"y":823,"width":599,"height":11}},{"id":"7755b51a-c40e-4926-b54b-adff2a984038","block_type":"box","text":"Additional Payments are made from BlackRock’s own assets (which may come directly or indirectly from fees","page_number":155,"box":{"x":101,"y":846,"width":776,"height":11}},{"id":"11447f5f-8511-4f75-9cac-caa5b26eb157","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":155,"box":{"x":70,"y":861,"width":832,"height":11}},{"id":"b569c117-90e6-4a84-a6a8-71c61956d107","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":155,"box":{"x":69,"y":876,"width":833,"height":11}},{"id":"fafcfeaa-7657-4fa2-b5dc-5ca8d3ac1ed7","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":155,"box":{"x":69,"y":891,"width":802,"height":11}},{"id":"9d221146-8e15-4cf0-83e3-78f8606a7ba1","block_type":"box","text":"Service Organizations are in addition to any distribution or shareholder servicing fees paid under any Plan of any","page_number":155,"box":{"x":69,"y":906,"width":802,"height":12}},{"id":"6e968b61-cf93-40ac-b764-be04818d4786","block_type":"box","text":"II-109","page_number":155,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"66405bd8-2482-4a72-a824-9edbb9a7c6cb","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":155,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"19e34901-f288-4da8-b2a7-3f3f861a039c","block_type":"box","text":"Fund, any sales charges, commissions or other concessions described in the Prospectuses or this SAI, and any","page_number":156,"box":{"x":70,"y":45,"width":796,"height":11}},{"id":"d9502229-f51b-4917-9867-368306e42240","block_type":"box","text":"administrative, networking, recordkeeping, sub-transfer agency or sub-accounting fees payable by a Fund. Pursuant to","page_number":156,"box":{"x":69,"y":60,"width":836,"height":11}},{"id":"bd4e92ff-b8ad-4a94-87af-0ea13805e247","block_type":"box","text":"applicable FINRA regulations, the details of cer tain of these payments, including the Service Organizations receiving","page_number":156,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"f45615f5-9501-400e-8cd2-d9457d6dd41b","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":156,"box":{"x":69,"y":90,"width":837,"height":11}},{"id":"eb619242-e6db-4e84-b72b-ecc7cf0ea445","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":156,"box":{"x":69,"y":105,"width":818,"height":11}},{"id":"2798858b-a084-4ce4-815e-5f20e08835c8","block_type":"box","text":"BlackRock may pay out of its own assets.","page_number":156,"box":{"x":70,"y":120,"width":294,"height":11}},{"id":"6ab5f252-3cc0-4d18-a5fb-24f4836253d5","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":156,"box":{"x":101,"y":143,"width":803,"height":11}},{"id":"9eb82631-effb-4f43-8bf5-b0139abb727e","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":156,"box":{"x":69,"y":158,"width":792,"height":11}},{"id":"ac37568e-c345-4e56-86b6-bd06bcfbede0","block_type":"box","text":"Customers of the Service Organization involved, or may be calculated on another basis.","page_number":156,"box":{"x":69,"y":173,"width":623,"height":11}},{"id":"b71ab0cd-b54d-4823-bcf9-b6994e15d6fe","block_type":"box","text":"BlackRock negotiates Additional Payments with each Service Organization on an individual basis. Additional","page_number":156,"box":{"x":102,"y":196,"width":765,"height":11}},{"id":"91ae7474-52fd-4fe2-9b7e-4672ffccf456","block_type":"box","text":"Payments may be different for different Service Organizations, and some Service Organizations may be paid pursuant","page_number":156,"box":{"x":69,"y":211,"width":841,"height":11}},{"id":"de00146c-00ef-44fc-8957-a24cbf831612","block_type":"box","text":"to more than one of the calculations described above. Not all Service Organizations receive Additional Payments.","page_number":156,"box":{"x":68,"y":226,"width":806,"height":11}},{"id":"ef8056f6-1c25-4ec8-964f-648aa7239016","block_type":"box","text":"Sales-based payments primarily create incentives to make new sales of shares of the Fund, and asset-based","page_number":156,"box":{"x":69,"y":241,"width":776,"height":11}},{"id":"585ed9e7-f08a-49dd-a14a-b2c09b6c9340","block_type":"box","text":"payments primarily create incentives to retain previously sold shares of the Fund. The level of payments made to","page_number":156,"box":{"x":70,"y":256,"width":802,"height":11}},{"id":"ef043d66-7623-4742-a6b7-b3cad10e7494","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":156,"box":{"x":68,"y":271,"width":811,"height":12}},{"id":"65fcbd94-c5a9-4134-9f26-047fa56bc92c","block_type":"box","text":"cases, these payments may be subject to cer tain minimum payment levels.","page_number":156,"box":{"x":69,"y":287,"width":538,"height":11}},{"id":"d61665c8-bea8-4181-b8dd-618f8a7f2882","block_type":"box","text":"The aggregate amount of Additional Payments made by BlackRock may be substantial and may be significant to","page_number":156,"box":{"x":101,"y":309,"width":795,"height":11}},{"id":"b0b59246-5595-4fd0-94fc-6070c43dd6af","block_type":"box","text":"cer tain Service Organizations. The categories of Additional Payments listed below are not mutually exclusive. The","page_number":156,"box":{"x":69,"y":324,"width":807,"height":12}},{"id":"a011b46f-2914-4b5e-97f6-bf93787a56d6","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":156,"box":{"x":69,"y":339,"width":823,"height":12}},{"id":"f5b234fc-60fb-48ac-9b5d-8c6e3aeee92c","block_type":"box","text":"Additional Payments. Such payments may be different for different Service Organizations and for different types of","page_number":156,"box":{"x":68,"y":355,"width":819,"height":11}},{"id":"a055cc8a-8bde-481c-befe-1727ada80143","block_type":"box","text":"Funds.","page_number":156,"box":{"x":70,"y":370,"width":44,"height":9}},{"id":"d963555c-8581-4fa0-8acf-4e2a1261ddce","block_type":"box","text":"A. Distribution and Marketing Suppor t","page_number":156,"box":{"x":101,"y":392,"width":270,"height":12}},{"id":"dae15515-59df-496f-8c71-5a0967d653a1","block_type":"box","text":"Additional Payments may be made by BlackRock for distribution and marketing suppor t activities. These","page_number":156,"box":{"x":101,"y":415,"width":740,"height":11}},{"id":"8811d163-f408-4138-913d-51115c2a83cd","block_type":"box","text":"payments may take the form of, among other things, “due diligence” payments for a Service Organization’s","page_number":156,"box":{"x":70,"y":430,"width":764,"height":11}},{"id":"859b3333-6e9a-495a-921b-65c9509e8981","block_type":"box","text":"examination of a Fund; payments for providing extra employee training and information relating to a Fund; fees for","page_number":156,"box":{"x":69,"y":445,"width":811,"height":12}},{"id":"6aa27365-acf9-4a27-a667-494d2c7548ac","block_type":"box","text":"access (in some cases on a preferential basis) to the Service Organization’s registered representatives,","page_number":156,"box":{"x":69,"y":460,"width":742,"height":12}},{"id":"f76ee82d-e452-49ac-bbbd-a6653f3e00ce","block_type":"box","text":"salespersons or other personnel, including at sales meetings and conferences; “shelf space” payments for placing","page_number":156,"box":{"x":69,"y":475,"width":820,"height":12}},{"id":"b9cd60f2-e244-4039-9d6c-37063b5e760b","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":156,"box":{"x":68,"y":491,"width":829,"height":11}},{"id":"ff6f9710-d44b-4fe3-887d-77ecd8fce09f","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":156,"box":{"x":69,"y":506,"width":830,"height":11}},{"id":"3ba7bebb-bd96-4eda-8166-36b764fced46","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":156,"box":{"x":70,"y":521,"width":803,"height":11}},{"id":"467990b7-6216-40e9-af00-239a21b39434","block_type":"box","text":"include promotions in communications with the Service Organization’s Customers, registered representatives,","page_number":156,"box":{"x":70,"y":536,"width":783,"height":11}},{"id":"58903cf2-ec1c-40af-8cbd-38f5e0815d33","block_type":"box","text":"salespersons and/or other personnel); payments for the sale of shares and/or the maintenance of share balances;","page_number":156,"box":{"x":69,"y":551,"width":823,"height":11}},{"id":"38f8a2c6-5944-498a-bd34-5c05e044892d","block_type":"box","text":"transaction fees (also referred to as “ticket charges”); and payments for infrastructure suppor t. These payments","page_number":156,"box":{"x":68,"y":566,"width":805,"height":11}},{"id":"39074e45-258b-49ea-80e5-a0b6971e4b58","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":156,"box":{"x":69,"y":581,"width":828,"height":12}},{"id":"a24ed152-44f7-48b3-8c75-7b0b330aa859","block_type":"box","text":"of the assets attributable to that Service Organization invested in a Fund.","page_number":156,"box":{"x":69,"y":596,"width":523,"height":12}},{"id":"8e0643c3-eccb-455e-8269-c475e8506715","block_type":"box","text":"B. Shareholder Services","page_number":156,"box":{"x":102,"y":619,"width":172,"height":9}},{"id":"f85dc636-3fcd-4831-a981-e4001f0ade81","block_type":"box","text":"Many Fund shares are owned or held by Service Organizations for the benefit of their Customers. In these","page_number":156,"box":{"x":102,"y":642,"width":754,"height":11}},{"id":"3d808507-7e54-4faa-8f36-eab6d731b1a9","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":156,"box":{"x":69,"y":657,"width":830,"height":11}},{"id":"26ee468b-08fb-4b50-9c6c-f50a17f112f3","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":156,"box":{"x":69,"y":672,"width":823,"height":11}},{"id":"66dcd1b4-3d08-487d-ba8c-62ff54facbe7","block_type":"box","text":"had been in the Customers’ names on the Fund’s books. Such services include sub-accounting services, shareholder","page_number":156,"box":{"x":69,"y":687,"width":839,"height":11}},{"id":"89b5cd56-d55c-4562-bd50-183a143c6a43","block_type":"box","text":"servicing and transaction processing services and are sometimes referred to as “recordkeeping,” “sub-transfer","page_number":156,"box":{"x":69,"y":702,"width":796,"height":12}},{"id":"ab7ff7d9-ff1a-4eda-8376-9b0998b95253","block_type":"box","text":"agency,” “sub-accounting,” “networking” and/or “administrative” services. Additional Payments may exceed amounts","page_number":156,"box":{"x":69,"y":718,"width":837,"height":11}},{"id":"3cd80160-9f96-4257-a6b1-4dedab308995","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":156,"box":{"x":68,"y":732,"width":828,"height":12}},{"id":"4a88c2f6-6add-4f0b-92de-ee0997a84060","block_type":"box","text":"Additional Payments made by BlackRock are in addition to any transfer agent, shareholder servicing and transaction","page_number":156,"box":{"x":68,"y":748,"width":827,"height":11}},{"id":"1d858546-4b4a-4c83-9b67-ddd89d8a21a2","block_type":"box","text":"processing fees paid by a Fund, as applicable.","page_number":156,"box":{"x":70,"y":763,"width":328,"height":11}},{"id":"8f73e4de-57af-4926-9e79-b8c50f3ba324","block_type":"box","text":"C. Data Provision and Technology Suppor t","page_number":156,"box":{"x":102,"y":786,"width":299,"height":11}},{"id":"c56bdfc7-f7b0-4422-b39d-3b085a35af3f","block_type":"box","text":"BlackRock may make Additional Payments to Service Organizations for the provision of cer tain analytical or other","page_number":156,"box":{"x":102,"y":808,"width":805,"height":11}},{"id":"965a5c51-8c29-4627-a97a-ca3d4a5f53d5","block_type":"box","text":"data services relating to the Funds, such as statistical information regarding sales of the Funds, or technology","page_number":156,"box":{"x":69,"y":823,"width":788,"height":12}},{"id":"bb2da071-6f69-4279-8200-7842310ec05a","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":156,"box":{"x":69,"y":838,"width":821,"height":12}},{"id":"77e17aa3-3e01-4ccf-9296-5016ccbe491a","block_type":"box","text":"D. 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Service Organizations may charge their Customers additional fees in connection with the","page_number":160,"box":{"x":69,"y":618,"width":794,"height":11}},{"id":"5807039a-893a-45be-a028-b75e9cf617e4","block_type":"box","text":"purchase or redemption of Fund shares or for account-related services which are in addition to the sales and other","page_number":160,"box":{"x":70,"y":633,"width":818,"height":11}},{"id":"35a4966f-4f6e-4dc8-a54b-e54e9d33edbb","block_type":"box","text":"charges described in the Fund’s Prospectus and this SAI. Such charges may vary among Service Organizations but in","page_number":160,"box":{"x":69,"y":648,"width":836,"height":11}},{"id":"3ac5c8d1-d18a-4f6f-924b-6d8720b4f159","block_type":"box","text":"all cases will be retained by the Service Organization and will not be remitted to a Fund or BlackRock.","page_number":160,"box":{"x":69,"y":663,"width":723,"height":12}},{"id":"39b9dcf9-67bc-4364-9838-3cc302a0639e","block_type":"box","text":"Shareholders should consider whether such incentives exist when evaluating any recommendations from a","page_number":160,"box":{"x":102,"y":686,"width":759,"height":11}},{"id":"b529e517-8a07-40aa-83b9-fddb79d512c0","block_type":"box","text":"Service Organization to purchase or sell shares of a Fund and when considering which share class is most","page_number":160,"box":{"x":69,"y":701,"width":760,"height":11}},{"id":"4a0745dd-7611-4871-94f5-29e02ab722e6","block_type":"box","text":"appropriate.","page_number":160,"box":{"x":69,"y":716,"width":84,"height":11}},{"id":"58144507-77e4-4a5c-8ac3-72664562aa3f","block_type":"box","text":"You should consult with your Service Organization, and review carefully any disclosure by the Service","page_number":160,"box":{"x":160,"y":716,"width":738,"height":11}},{"id":"b596f255-ebb3-4004-b2e3-d8e95be82d7e","block_type":"box","text":"Organization, as to compensation received by it or its affiliates and for more information about the payments","page_number":160,"box":{"x":69,"y":731,"width":795,"height":11}},{"id":"7e3b5f88-7985-464a-b3f7-bc3033ebd8cf","block_type":"box","text":"described above.","page_number":160,"box":{"x":69,"y":746,"width":122,"height":9}},{"id":"5db559eb-cac2-4b56-99bb-246ff9181d9d","block_type":"box","text":"REDEMPTION OF SHARES","page_number":160,"box":{"x":385,"y":776,"width":208,"height":10}},{"id":"6de4c575-9009-44ef-8767-f611f876aa75","block_type":"box","text":"Shares normally will be redeemed for cash upon receipt of a request in proper form, although each Fund retains","page_number":160,"box":{"x":102,"y":799,"width":798,"height":11}},{"id":"3bbae3cd-72c4-40a9-b7dc-540e84c91f65","block_type":"box","text":"the right to redeem some or all of its shares in kind (valued in the same way as they would be valued for purposes of","page_number":160,"box":{"x":68,"y":814,"width":836,"height":11}},{"id":"7a1f9fcb-200f-4c74-8892-88465fedf6ac","block_type":"box","text":"computing a Fund’s NAV), by delivery of securities and other assets selected from the Fund’s por tfolio holdings at the","page_number":160,"box":{"x":69,"y":829,"width":840,"height":11}},{"id":"c073fb77-c1e4-495c-b9cf-45854a5368bc","block_type":"box","text":"Manager’s discretion. In kind payment means payment will be made in por tfolio securities and other assets rather","page_number":160,"box":{"x":70,"y":844,"width":814,"height":11}},{"id":"f9049d89-3d89-4162-9223-140cd3044e9d","block_type":"box","text":"than cash. Redemptions in kind may be used in applicable circumstances, generally if the relevant shareholder is","page_number":160,"box":{"x":68,"y":859,"width":809,"height":11}},{"id":"a38e1ec3-406f-4872-b05b-5bacbd9323c6","block_type":"box","text":"able to accept securities in kind, and may also be used in stressed market conditions. If this occurs, the redeeming","page_number":160,"box":{"x":69,"y":874,"width":827,"height":12}},{"id":"44e46634-bc26-4f4e-ba2c-2fe5dd240a27","block_type":"box","text":"shareholder might incur brokerage or other transaction costs to conver t the securities and other assets to cash. Each","page_number":160,"box":{"x":69,"y":890,"width":839,"height":11}},{"id":"153c0499-795c-4d3e-ac94-0446fb391a18","block_type":"box","text":"Fund has elected, however, to be governed by Rule 18f-1 under the Investment Company Act so that the Fund is","page_number":160,"box":{"x":70,"y":904,"width":797,"height":12}},{"id":"01751071-9cd4-4627-954f-97b8df6a5c8c","block_type":"box","text":"II-114","page_number":160,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"8a7e565a-de11-4747-bf95-24af2477d67f","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":160,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"57b53da8-3b42-410e-913e-a0e4d90fa7dd","block_type":"box","text":"obligated to redeem its shares solely in cash up to the lesser of $250,000 or 1% of its NAV during any 90-day period","page_number":161,"box":{"x":69,"y":44,"width":833,"height":12}},{"id":"ad6d8760-eb24-4bea-896e-809c97183366","block_type":"box","text":"for any shareholder of the Fund.","page_number":161,"box":{"x":68,"y":60,"width":227,"height":11}},{"id":"eb32caf9-c97e-4461-b50d-342bb83d5569","block_type":"box","text":"The redemption price is the NAV per share next determined after the initial receipt of proper notice of","page_number":161,"box":{"x":101,"y":82,"width":722,"height":11}},{"id":"3c97f397-4919-4e43-9fd4-a0ceceab8c36","block_type":"box","text":"redemption. The value of shares of each Fund at the time of redemption may be more or less than your cost at the","page_number":161,"box":{"x":69,"y":98,"width":818,"height":11}},{"id":"9e259fe7-f5c9-437d-a9f7-693fb9fcfa16","block_type":"box","text":"time of purchase, depending in par t on the market value of the securities held by the Fund at such time. Except for","page_number":161,"box":{"x":68,"y":113,"width":821,"height":11}},{"id":"be3620a1-45d4-4d14-a19c-8a486d47d023","block_type":"box","text":"any CDSC that may be applicable, there will be no redemption charge if your redemption request is sent directly to","page_number":161,"box":{"x":69,"y":128,"width":815,"height":11}},{"id":"641539c9-0ada-48e7-8db1-648a1912fd5d","block_type":"box","text":"the Transfer Agent. If you are liquidating your holdings you will receive all dividends reinvested through the date of","page_number":161,"box":{"x":68,"y":143,"width":812,"height":11}},{"id":"1fc4e4d4-9385-4a1c-8c44-fa3926fdd931","block_type":"box","text":"redemption.","page_number":161,"box":{"x":69,"y":158,"width":83,"height":11}},{"id":"839bbe30-acff-4872-a63e-2694ba3cae53","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":161,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"999ba004-ee75-44fc-a851-13d89aa7c5c8","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":161,"box":{"x":69,"y":196,"width":835,"height":11}},{"id":"0e9bfa2b-4aaf-4986-aa8b-ab31651b6ca0","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":161,"box":{"x":68,"y":211,"width":811,"height":11}},{"id":"ae6e341f-832c-44bc-9aba-5c452f7c6cfb","block_type":"box","text":"emergency exists, as defined by the Commission, as a result of which disposal of por tfolio securities or","page_number":161,"box":{"x":69,"y":226,"width":741,"height":11}},{"id":"bf04aa7c-d835-4172-b1e9-f780fd183b3e","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":161,"box":{"x":69,"y":241,"width":813,"height":11}},{"id":"09116432-6f61-48e7-9c61-4a2247c22fc7","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":161,"box":{"x":69,"y":256,"width":787,"height":11}},{"id":"8baa95c6-f778-40ec-91ca-eb97872cb196","block_type":"box","text":"recordation of the transfer of its shares upon the occurrence of any of the foregoing conditions.)","page_number":161,"box":{"x":69,"y":271,"width":685,"height":12}},{"id":"a9a08c02-17bb-43f2-a0bc-94f85dbf034c","block_type":"box","text":"Each Fund, with other investment companies advised by the Manager, has entered into a joint committed line of","page_number":161,"box":{"x":102,"y":294,"width":798,"height":11}},{"id":"11f6dd9c-8818-49d5-8c01-26507984dd02","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":161,"box":{"x":69,"y":309,"width":820,"height":11}},{"id":"15e71236-cd57-474d-8bd4-9f779dea32bf","block_type":"box","text":"meet redemption requests from shareholders in extraordinary or emergency circumstances.","page_number":161,"box":{"x":69,"y":324,"width":653,"height":12}},{"id":"4a7758c7-78e6-45fd-b5fb-f5e875ae2821","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":161,"box":{"x":102,"y":347,"width":803,"height":11}},{"id":"faf269d8-6441-44f6-bf26-850b7cf1cc21","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":161,"box":{"x":69,"y":362,"width":827,"height":11}},{"id":"36c042e9-07b7-4efd-8a19-17a5406f6acc","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":161,"box":{"x":68,"y":377,"width":824,"height":12}},{"id":"329da7df-d013-47af-a19e-ff085b6b1fdf","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":161,"box":{"x":70,"y":392,"width":825,"height":12}},{"id":"0923b8f8-5a38-4172-90e8-16dc38dd09d7","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":161,"box":{"x":69,"y":407,"width":825,"height":12}},{"id":"4cbc5d50-2f2b-4001-b7b7-ee532ec775e4","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":161,"box":{"x":69,"y":423,"width":823,"height":11}},{"id":"b05d3455-e354-4054-89d2-a5c1b83ed6dd","block_type":"box","text":"Redemption","page_number":161,"box":{"x":69,"y":453,"width":86,"height":11}},{"id":"730db750-dedb-4d33-a527-9f38928e4d28","block_type":"box","text":"Investor A, Investor A1, Investor C, Institutional and Class R Shares","page_number":161,"box":{"x":70,"y":476,"width":481,"height":10}},{"id":"9800f588-b3be-4246-9124-f2d926388b38","block_type":"box","text":"Redeem by Telephone:","page_number":161,"box":{"x":102,"y":498,"width":162,"height":11}},{"id":"53c79b2c-60c4-46ab-88d2-de932f9d47a8","block_type":"box","text":"You may sell Investor Shares, excluding Investor P Shares, held at BlackRock by","page_number":161,"box":{"x":270,"y":498,"width":571,"height":11}},{"id":"3f91e5e0-b27a-4cbd-b2da-6e617ea789c9","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":161,"box":{"x":68,"y":513,"width":829,"height":12}},{"id":"05c2dd27-33dc-4f2d-a083-42754ebec0e0","block_type":"box","text":"by check or (ii) $250,000 for payments through the Automated Clearing House Network (“ACH”) or wire transfer.","page_number":161,"box":{"x":69,"y":528,"width":798,"height":12}},{"id":"c47f6aa7-560e-4e17-9759-9af5215d30fb","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":161,"box":{"x":69,"y":543,"width":838,"height":12}},{"id":"e70742c8-1b6b-4f1c-ae85-5e25ecd799df","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":161,"box":{"x":68,"y":559,"width":831,"height":11}},{"id":"f9c4c3d3-76e1-4552-9868-62bf3a6e4842","block_type":"box","text":"be in writing with a medallion signature guarantee provided by any “eligible guarantor institution” as defined in Rule","page_number":161,"box":{"x":69,"y":574,"width":822,"height":11}},{"id":"e2bb2328-cc37-4c46-a0ba-47d3a2039dfd","block_type":"box","text":"17Ad-15 under the Securities Exchange Act of 1934 (the “Exchange Act”), whose existence and validity may be","page_number":161,"box":{"x":70,"y":589,"width":791,"height":11}},{"id":"a8164b9b-a157-49af-99ad-9ea57fef29ba","block_type":"box","text":"verified by the Transfer Agent through the use of industry publications. For Institutional Shares, cer tain redemption","page_number":161,"box":{"x":68,"y":604,"width":818,"height":11}},{"id":"5ad7c289-9284-48dd-99ec-2ed6318d87a8","block_type":"box","text":"requests may require written instructions with a medallion signature guarantee. Call (800) 441-7762 for details. You","page_number":161,"box":{"x":69,"y":619,"width":829,"height":11}},{"id":"14ea40c4-a3b0-40d1-8691-92da858b27ed","block_type":"box","text":"can obtain a medallion signature guarantee stamp from a bank, securities dealer, securities broker, credit union,","page_number":161,"box":{"x":69,"y":634,"width":803,"height":12}},{"id":"e66be623-eefd-495e-bc4a-46ef797ed451","block_type":"box","text":"savings and loan association, national securities exchange or registered securities association. The three recognized","page_number":161,"box":{"x":69,"y":650,"width":834,"height":11}},{"id":"3c677ad1-fdf3-4fb3-b028-d953476b7189","block_type":"box","text":"medallion programs are Securities Transfer Agent Medallion Program, Stock Exchanges Medallion Program and New","page_number":161,"box":{"x":69,"y":664,"width":825,"height":12}},{"id":"0cafe6d6-cd50-4d1e-8a22-ee60e5b6f658","block_type":"box","text":"York Stock Exchange, Inc. Medallion Signature Program. Signature guarantees which are not a par t of these programs","page_number":161,"box":{"x":68,"y":680,"width":840,"height":11}},{"id":"1e96647e-fc25-41be-933c-071397882eb7","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":161,"box":{"x":68,"y":695,"width":835,"height":11}},{"id":"a76f5ca2-9904-40c5-871d-87e288efb2a0","block_type":"box","text":"required signature guarantee is all that is required for a redemption. In some cases, however, other documents may","page_number":161,"box":{"x":69,"y":710,"width":828,"height":11}},{"id":"ec889f1a-9b81-486b-98e6-15e0918629ba","block_type":"box","text":"be necessary. Additional documentary evidence of authority is required by the Transfer Agent in the event redemption","page_number":161,"box":{"x":69,"y":725,"width":835,"height":11}},{"id":"7c8ac508-be5a-4aae-b667-477b19f58b16","block_type":"box","text":"is requested by a corporation, par tnership, trust, fiduciary, executor or administrator.","page_number":161,"box":{"x":70,"y":740,"width":603,"height":11}},{"id":"e46172f4-95de-4369-b19b-9bb0c2be8536","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":161,"box":{"x":102,"y":763,"width":774,"height":11}},{"id":"3e1c8479-dfe4-4dfb-aafd-094eccb67930","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":161,"box":{"x":69,"y":778,"width":795,"height":11}},{"id":"0f2ccf43-830c-44ac-9a4a-a3ea3c518818","block_type":"box","text":"Distributor will employ reasonable procedures to confirm that instructions communicated by telephone are genuine.","page_number":161,"box":{"x":70,"y":793,"width":821,"height":11}},{"id":"75cb75a8-9740-4b89-afc9-812fdaccfca3","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":161,"box":{"x":68,"y":808,"width":823,"height":11}},{"id":"ae59c6dc-de14-43f5-b8d7-69b82055e7b0","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":161,"box":{"x":69,"y":823,"width":823,"height":11}},{"id":"704d914c-23e4-4c05-beb7-59c54a813ea8","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":161,"box":{"x":69,"y":838,"width":809,"height":11}},{"id":"6de18c6e-4166-4a25-ad62-744c55d51974","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":161,"box":{"x":69,"y":853,"width":833,"height":12}},{"id":"3a626e85-cd5e-4822-ad3e-619748648651","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":161,"box":{"x":69,"y":869,"width":821,"height":11}},{"id":"a896d943-1780-4b78-917f-b1fa28577a66","block_type":"box","text":"address registered on the account and the social security number registered on the account. The Fund and its","page_number":161,"box":{"x":69,"y":884,"width":785,"height":11}},{"id":"3265eeb9-fd18-4e7c-8727-ae2001d96cbe","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":161,"box":{"x":69,"y":899,"width":820,"height":11}},{"id":"9830c2f3-b6e8-45de-bbd2-fc77702ed406","block_type":"box","text":"II-115","page_number":161,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"68ac6b09-ae73-47ef-97ec-c5d596e95311","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":161,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"841ddb01-8faa-4d87-bc24-9765d5d4ed62","block_type":"box","text":"are reasonably believed to be genuine in accordance with such procedures. Before telephone requests will be","page_number":162,"box":{"x":69,"y":45,"width":782,"height":11}},{"id":"bff9364d-1fe8-4485-9136-38cf8e10cc14","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":162,"box":{"x":69,"y":60,"width":838,"height":11}},{"id":"9263f9e3-f30f-46b5-a457-b9a60114f241","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":162,"box":{"x":68,"y":75,"width":837,"height":11}},{"id":"7bb17d92-d912-4b3d-a4f0-c4a4cc0019d2","block_type":"box","text":"change, telephone redemptions may be difficult to complete. Please find below alternative redemption methods.","page_number":162,"box":{"x":69,"y":90,"width":800,"height":11}},{"id":"d355453c-ad10-4a98-af1b-aa3b9c031121","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":162,"box":{"x":102,"y":113,"width":776,"height":11}},{"id":"3245d0ba-855e-4472-ae88-262e074e5f3a","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":162,"box":{"x":70,"y":128,"width":823,"height":11}},{"id":"0306618d-4180-450f-b7d9-11e1ae61c4eb","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":162,"box":{"x":69,"y":143,"width":820,"height":11}},{"id":"978896dd-9a74-403f-a16f-262e2a9a30dc","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":162,"box":{"x":68,"y":158,"width":826,"height":11}},{"id":"a789afb4-1e03-45be-bc78-f503740f51ed","block_type":"box","text":"the redemption order will be accepted and processed the next succeeding business day when the Federal Reserve","page_number":162,"box":{"x":68,"y":173,"width":817,"height":11}},{"id":"49b94a4d-2d72-4943-b6a6-fd88330c270a","block_type":"box","text":"Bank of Philadelphia is open, provided that the Fund’s custodian is also open for business.","page_number":162,"box":{"x":70,"y":188,"width":648,"height":11}},{"id":"345bbc87-3271-4085-a022-fa8568faebcf","block_type":"box","text":"Redeem by VRU:","page_number":162,"box":{"x":102,"y":211,"width":120,"height":11}},{"id":"45168303-32cd-4ae5-96b8-0a99749c5102","block_type":"box","text":"Investor class shares, excluding Investor P Shares, may also be redeemed by use of a Fund’s","page_number":162,"box":{"x":229,"y":211,"width":667,"height":11}},{"id":"6e00d3c3-3c1b-42e3-ba09-b28a9a914af3","block_type":"box","text":"automated voice response unit service (“VRU”). Payment for Investor class shares redeemed by VRU may be made","page_number":162,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"5ab3c543-abd2-4a8a-9124-123e55168f6a","block_type":"box","text":"for non-retirement accounts in amounts up to $25,000, either through check, ACH or wire.","page_number":162,"box":{"x":68,"y":241,"width":644,"height":11}},{"id":"7ce81335-24aa-4e13-a449-ee67a2d03595","block_type":"box","text":"Redeem by Internet:","page_number":162,"box":{"x":102,"y":264,"width":147,"height":11}},{"id":"4850f230-fe02-41b6-b673-6590eb2c6578","block_type":"box","text":"Cer tain Investor and Institutional class shares may also be redeemed by logging onto the","page_number":162,"box":{"x":255,"y":264,"width":637,"height":11}},{"id":"40b2543f-95b5-487f-8c8b-6b474402ef3c","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":162,"box":{"x":70,"y":279,"width":836,"height":11}},{"id":"dfc5308e-d09c-43db-af6e-2ee49ead7349","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":162,"box":{"x":68,"y":294,"width":823,"height":11}},{"id":"3d28ef03-5172-45a3-9c57-f9487908ac6a","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":162,"box":{"x":68,"y":309,"width":789,"height":11}},{"id":"9e443697-eedf-4c7d-9cb7-43cbc7ad9557","block_type":"box","text":"institutional investors.","page_number":162,"box":{"x":70,"y":325,"width":155,"height":8}},{"id":"7b28e062-cbf3-4303-ba03-e5fa7df54c3d","block_type":"box","text":"Redeem in Writing:","page_number":162,"box":{"x":102,"y":347,"width":137,"height":11}},{"id":"4446e1e7-d618-474d-96c6-d558c205061b","block_type":"box","text":"If you hold shares with the Transfer Agent you may redeem such shares without charge by","page_number":162,"box":{"x":247,"y":347,"width":639,"height":11}},{"id":"66d2d72f-f89d-4691-acc8-87bea5fce940","block_type":"box","text":"writing to BlackRock, P.O. Box 534429, Pittsburgh, Pennsylvania 15253-4429. Redemption requests delivered other","page_number":162,"box":{"x":68,"y":362,"width":831,"height":11}},{"id":"0c8dfcbe-a417-4b46-ab2f-6efdc8d54a56","block_type":"box","text":"than by mail should be sent to BlackRock, Attention: 534429, 1350 Penn Avenue Suite 102, Pittsburgh,","page_number":162,"box":{"x":68,"y":377,"width":745,"height":12}},{"id":"5d80499f-8ab6-453b-a60d-8ab820931c5f","block_type":"box","text":"Pennsylvania 15222. If you hold share cer tificates issued by your Fund, the letter must be accompanied by","page_number":162,"box":{"x":69,"y":392,"width":764,"height":12}},{"id":"6d9829e3-2711-4e74-af9a-fe7d8fad5c04","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":162,"box":{"x":69,"y":407,"width":831,"height":12}},{"id":"8aee61f1-e2d7-4026-a5f8-886b8ed67a02","block_type":"box","text":"generally be required but may be waived in cer tain limited circumstances. You can obtain a medallion signature","page_number":162,"box":{"x":68,"y":423,"width":794,"height":11}},{"id":"b9ce8564-146b-4b59-83d5-9cd19c57a57a","block_type":"box","text":"guarantee stamp from a bank, securities dealer, securities broker, credit union, savings and loan association,","page_number":162,"box":{"x":68,"y":438,"width":782,"height":11}},{"id":"7fe35022-37ae-4fb7-8243-a7d8555e8029","block_type":"box","text":"national securities exchange or registered securities association. A notary public seal will not be acceptable. If you","page_number":162,"box":{"x":69,"y":453,"width":817,"height":11}},{"id":"9fee2985-ee34-4951-9cb4-37beac3cba45","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":162,"box":{"x":69,"y":468,"width":836,"height":11}},{"id":"788a626d-1ed4-4b6f-80a4-240fdddc9516","block_type":"box","text":"or wire to the bank account of record.","page_number":162,"box":{"x":69,"y":483,"width":266,"height":9}},{"id":"04b0a283-3c1a-4796-aa29-5bd269ba37ad","block_type":"box","text":"Redemptions of Investor P Shares, Service Shares, Class G Shares, Class K Shares and BlackRock Shares may","page_number":162,"box":{"x":102,"y":506,"width":802,"height":11}},{"id":"acd53856-3dc8-4275-ab3c-91506cd2b149","block_type":"box","text":"be made in the manner and amounts described in the Prospectuses.","page_number":162,"box":{"x":69,"y":521,"width":489,"height":11}},{"id":"d56af18e-5069-41a7-9cbb-28bb5d179b35","block_type":"box","text":"The Funds or the Transfer Agent may temporarily suspend telephone transactions at any time.","page_number":162,"box":{"x":101,"y":543,"width":668,"height":12}},{"id":"cb3bbda5-92e9-4236-b990-dbf8a22e6cc1","block_type":"box","text":"If you redeem shares directly with the Transfer Agent, payments will generally be mailed within one business day","page_number":162,"box":{"x":102,"y":566,"width":800,"height":11}},{"id":"8b3f44f3-eb9b-4ab0-8fe7-34c786b239b7","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":162,"box":{"x":69,"y":581,"width":838,"height":12}},{"id":"8342b947-1e97-49d1-b178-9d86a49bc55b","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":162,"box":{"x":69,"y":596,"width":811,"height":11}},{"id":"392f7d25-c6e1-4441-bd6e-4506afe5b6bc","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":162,"box":{"x":69,"y":612,"width":789,"height":11}},{"id":"52ee2def-6017-4023-89cf-149ad1eca4d2","block_type":"box","text":"contains a fractional share balance following a redemption, the fractional share balance will be automatically","page_number":162,"box":{"x":69,"y":627,"width":775,"height":11}},{"id":"5810a355-bd20-4afd-aec3-f6e5981db14a","block_type":"box","text":"redeemed by the Fund.","page_number":162,"box":{"x":69,"y":642,"width":162,"height":11}},{"id":"8002f404-8ada-4fde-9919-ec02fdeebdf8","block_type":"box","text":"Note on Low Balance Accounts.","page_number":162,"box":{"x":102,"y":665,"width":223,"height":8}},{"id":"28dccef4-1cd8-4275-ab5e-5dfd4fc83f3e","block_type":"box","text":"Because of the high cost of maintaining smaller shareholder accounts,","page_number":162,"box":{"x":332,"y":664,"width":503,"height":12}},{"id":"af1fa682-524b-4ce4-a560-e692ca7c0489","block_type":"box","text":"BlackRock has set a minimum balance of $500 in each Fund position you hold within your account (“Fund","page_number":162,"box":{"x":70,"y":679,"width":752,"height":12}},{"id":"795b931c-38e4-440c-8238-9a72addba67c","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":162,"box":{"x":70,"y":694,"width":829,"height":12}},{"id":"5aa0c038-72d4-4fec-8a9c-fd056f0a00b2","block_type":"box","text":"for any reason, including market fluctuation.","page_number":162,"box":{"x":68,"y":710,"width":313,"height":11}},{"id":"5db326b2-a6a6-4319-9a80-e22675ad856d","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":162,"box":{"x":101,"y":732,"width":775,"height":12}},{"id":"451f0f83-a66b-4e3d-8fa3-8556f0c284be","block_type":"box","text":"involuntary redemption. This notification will provide you with a 90 calendar day period to make an additional","page_number":162,"box":{"x":70,"y":748,"width":773,"height":11}},{"id":"0bfc620b-96e2-4940-9539-66d8c68c5239","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":162,"box":{"x":70,"y":762,"width":776,"height":12}},{"id":"4cb640a7-7234-4f92-b8f1-a5724b08b758","block_type":"box","text":"redemption. This involuntary redemption will not charge any deferred sales charge, and may not apply to accounts of","page_number":162,"box":{"x":69,"y":778,"width":834,"height":11}},{"id":"5435ee95-652f-44c8-8215-4b4fedcb2363","block_type":"box","text":"cer tain employer-sponsored retirement plans (not including IRAs), qualified state tuition plan (529 Plan) accounts,","page_number":162,"box":{"x":69,"y":793,"width":811,"height":11}},{"id":"8b0370a1-2eb7-450c-bec2-06e7dbf0093c","block_type":"box","text":"and select fee-based programs at your financial intermediary.","page_number":162,"box":{"x":69,"y":808,"width":435,"height":11}},{"id":"d39581b0-a8da-40b4-ba0e-6bd9a5501561","block_type":"box","text":"Redemptions in Kind:","page_number":162,"box":{"x":102,"y":831,"width":153,"height":11}},{"id":"278f64ec-81c0-4ee5-9e5a-59251d938879","block_type":"box","text":"Each Fund reserves the right to honor any request for redemption by making payment in","page_number":162,"box":{"x":263,"y":831,"width":624,"height":11}},{"id":"01f71eed-9020-4b2f-8e22-1545e6e6d631","block_type":"box","text":"whole or in par t by delivering securities valued in the same way as they would be valued for purposes of computing a","page_number":162,"box":{"x":68,"y":846,"width":833,"height":11}},{"id":"b44c9a04-b07a-47b0-80e4-944f0284ff3b","block_type":"box","text":"Fund’s NAV, except that each Fund is obligated to redeem shares solely in cash up to the lesser of $250,000 or 1%","page_number":162,"box":{"x":70,"y":860,"width":825,"height":12}},{"id":"83aa7659-2e08-425d-a8ed-a717c036365c","block_type":"box","text":"of the Fund’s NAV during any 90-day period for any one shareholder. Redemptions in excess of those amounts will","page_number":162,"box":{"x":69,"y":876,"width":811,"height":11}},{"id":"2c398db9-d8b7-4a99-bbc8-87941f005c93","block_type":"box","text":"normally be paid in cash but may be paid wholly or par tly by a distribution in kind of securities.","page_number":162,"box":{"x":69,"y":891,"width":672,"height":11}},{"id":"07c80ca1-132f-493c-a6e1-6fa707457816","block_type":"box","text":"II-116","page_number":162,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"fb06866e-5e0e-493f-8639-9e97482f1912","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":162,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"36b2952a-3560-40b3-a508-8457449e24b2","block_type":"box","text":"The specific security or securities to be distributed will be determined by the Manager and could include a pro","page_number":163,"box":{"x":101,"y":45,"width":787,"height":11}},{"id":"8586b006-ece0-4231-a722-c5624286f4d8","block_type":"box","text":"rata representation of the Fund’s por tfolio or a non-pro-rata representation of the Fund’s por tfolio depending upon","page_number":163,"box":{"x":69,"y":60,"width":812,"height":11}},{"id":"4436a948-c0cd-4e37-a801-6c52e4c7bf86","block_type":"box","text":"various circumstances and subject to the Funds’ policies and procedures and any applicable laws or regulations. In","page_number":163,"box":{"x":68,"y":75,"width":822,"height":11}},{"id":"441bfb8e-acd7-49f2-8238-3d35637cc319","block_type":"box","text":"effecting such redemption in kind, the Manager may select securities to distribute to the redeeming shareholder by","page_number":163,"box":{"x":69,"y":90,"width":822,"height":11}},{"id":"f7b10fb5-2bd5-416c-a2d4-2eb62b73a14c","block_type":"box","text":"considering cer tain factors, including, without limitation, the por tfolio management team’s model or optimal por tfolio,","page_number":163,"box":{"x":69,"y":105,"width":838,"height":11}},{"id":"19e6d420-98e8-4917-a45e-66eba879855b","block_type":"box","text":"risk management considerations, compliance considerations, the active positioning of a Fund post-redemption, the","page_number":163,"box":{"x":69,"y":120,"width":818,"height":12}},{"id":"ec7bbd69-78e4-433e-ba9a-32920db5522f","block_type":"box","text":"liquidity of the securities, and the tax basis of the securities. There is no assurance that BlackRock will select to","page_number":163,"box":{"x":70,"y":135,"width":801,"height":11}},{"id":"b56d5178-050c-419f-8b4a-a1a56fe29df9","block_type":"box","text":"retain those securities that will per form the best. An Index Fund may deviate from pro rata redemptions but will seek","page_number":163,"box":{"x":69,"y":150,"width":832,"height":12}},{"id":"d070c5c4-c900-4a0d-89a4-37d22eb11139","block_type":"box","text":"for the securities and other assets to be distributed to be deemed to be a fair representation of por tfolio holdings","page_number":163,"box":{"x":68,"y":166,"width":812,"height":11}},{"id":"34486899-cdc4-42d3-8dcf-79aa47eb315e","block_type":"box","text":"and the interests of the remaining shareholders in the Index Fund to not be diluted.","page_number":163,"box":{"x":69,"y":181,"width":594,"height":11}},{"id":"ed7247e6-5efc-4399-abc9-2f6a0483e243","block_type":"box","text":"The Funds may effect redemptions in kind in an effor t to, among other considerations: (a) manage the por tfolio","page_number":163,"box":{"x":101,"y":203,"width":795,"height":12}},{"id":"f680f402-ce92-40e9-870d-1b252b5d96b4","block_type":"box","text":"efficiently or for any other por tfolio management purpose, and (b) externalize cer tain transaction costs that would","page_number":163,"box":{"x":69,"y":218,"width":810,"height":12}},{"id":"cd4d948f-8441-4f86-94f9-b53af23e9aa3","block_type":"box","text":"otherwise be borne by a Fund in connection with redemption activity or por tfolio turnover. Redemptions in kind may","page_number":163,"box":{"x":69,"y":234,"width":820,"height":11}},{"id":"02139e80-1e2e-441b-8355-25125abefb3a","block_type":"box","text":"reduce the need for the Fund to maintain shor t-term cash reserves, reduce Fund transaction costs, reduce the need","page_number":163,"box":{"x":69,"y":249,"width":828,"height":10}},{"id":"7c886f3c-1e55-4cf5-a33f-0144d63d4008","block_type":"box","text":"for the Fund to sell its investments at inoppor tune times, and lower Fund capital gain recognition, all of which may be","page_number":163,"box":{"x":68,"y":264,"width":838,"height":11}},{"id":"0987b7ef-a05e-4b0e-a18b-b85b10025820","block_type":"box","text":"considerations when determining whether to effect a redemption in kind. However, there can be no assurance that","page_number":163,"box":{"x":69,"y":279,"width":817,"height":11}},{"id":"42d0ed6e-173c-4cdd-8dea-93d04c7efb67","block_type":"box","text":"redemptions in kind can or will be effected when they would be beneficial to a Fund, and it may be impractical or","page_number":163,"box":{"x":69,"y":294,"width":802,"height":11}},{"id":"3b79b074-2d00-4f48-8a69-c64214d753ce","block_type":"box","text":"impossible to effect redemptions in kind with many or substantially all of the Fund’s shareholders because of, among","page_number":163,"box":{"x":70,"y":309,"width":837,"height":11}},{"id":"5bd02936-ad64-4519-8759-3fe438b15876","block_type":"box","text":"other things, how they hold their Fund shares or the small value of the redemptions.","page_number":163,"box":{"x":69,"y":324,"width":598,"height":12}},{"id":"6cad2701-f324-4458-ac57-ab131aa0e61f","block_type":"box","text":"In some circumstances, in order to meet Fund liquidity needs, for optimization of the Fund’s por tfolio, or a","page_number":163,"box":{"x":102,"y":347,"width":756,"height":11}},{"id":"57195884-34e8-4df9-b0b5-1ebf16f0e1d8","block_type":"box","text":"combination thereof, a Fund, in its discretion, may accept large purchase orders from one or more financial","page_number":163,"box":{"x":69,"y":362,"width":764,"height":11}},{"id":"58a86c88-74a9-46ba-aa34-28ba39ea694d","block_type":"box","text":"institutions that are willing, upon redemption of their investment in the Fund, to receive their redemption proceeds in","page_number":163,"box":{"x":70,"y":377,"width":830,"height":12}},{"id":"f8ad483b-06f8-4238-86e3-b88d96f4c098","block_type":"box","text":"kind rather than in cash. A Fund’s ability to pay these redemption proceeds in kind relieves the Fund of the need of","page_number":163,"box":{"x":69,"y":392,"width":821,"height":12}},{"id":"23396c6d-7e3e-4f45-8850-5979f1c0c2c6","block_type":"box","text":"the Fund to sell the securities that are distributed in kind and incur brokerage and other transaction costs associated","page_number":163,"box":{"x":68,"y":408,"width":837,"height":11}},{"id":"67185a7e-0f0e-48ae-9b2b-1a7709a2a034","block_type":"box","text":"with such sale, and may have the effect of reducing the amount of taxable gains the Fund would otherwise be","page_number":163,"box":{"x":68,"y":423,"width":784,"height":11}},{"id":"d3aa3337-21f5-4b01-9b80-07ba4a7d6b0a","block_type":"box","text":"required to distribute to shareholders. A Fund’s ability to engage in such transactions is subject to, among other","page_number":163,"box":{"x":69,"y":438,"width":801,"height":11}},{"id":"86626f0a-451d-4796-b50a-aeef9f456417","block_type":"box","text":"things, limitations on frequency of redemptions in kind under the Fund’s policies and availability of shareholders able","page_number":163,"box":{"x":68,"y":453,"width":835,"height":11}},{"id":"c0ada1ac-7e26-4a7f-b668-1e7f0f9653e3","block_type":"box","text":"to transact in kind, and there is no assurance that the Fund can or will effect any redemptions in kind. Financial","page_number":163,"box":{"x":68,"y":468,"width":796,"height":11}},{"id":"e51134eb-bc5d-4f5c-8e0d-e408f3bf325e","block_type":"box","text":"institutions that par ticipate in the transactions described in this sub-section do not receive a fee from the Fund for","page_number":163,"box":{"x":70,"y":483,"width":816,"height":11}},{"id":"3533abda-f50d-42db-a444-753dbbc112bf","block_type":"box","text":"doing so. The Funds’ shor t-term trading policy shall not apply to the transactions described in this sub-section.","page_number":163,"box":{"x":69,"y":498,"width":788,"height":11}},{"id":"679ba4c5-1642-45ff-b762-79a1db950e0e","block_type":"box","text":"If you receive securities through a redemption in kind, and desire to conver t them to cash, you may pay taxes","page_number":163,"box":{"x":102,"y":521,"width":779,"height":11}},{"id":"37f733ed-16a7-4fe4-aa1a-46ec1f615ba1","block_type":"box","text":"and brokerage and other transaction costs to dispose of the securities. You may also receive less for the securities","page_number":163,"box":{"x":69,"y":536,"width":823,"height":11}},{"id":"0b8dffea-714b-4035-8cf3-72c87b641d76","block_type":"box","text":"than the price at which they were valued for purposes of effecting the redemption. There may also be a risk that","page_number":163,"box":{"x":68,"y":551,"width":800,"height":11}},{"id":"2e22b0a5-4943-423b-b4cd-9e5a9318d560","block_type":"box","text":"redemption in kind activity could negatively impact the market value of the securities distributed in kind and, in turn,","page_number":163,"box":{"x":69,"y":566,"width":826,"height":11}},{"id":"66ccc457-ee2f-47aa-8e58-94e6c71d6abd","block_type":"box","text":"the NAV of the corresponding Fund.","page_number":163,"box":{"x":68,"y":581,"width":251,"height":12}},{"id":"f9aa2896-61a5-4400-a2ff-42f2d98b6d78","block_type":"box","text":"Repurchase","page_number":163,"box":{"x":69,"y":612,"width":85,"height":11}},{"id":"b34748de-2b04-46c3-bbce-b4d4643e6d10","block_type":"box","text":"A Fund normally will accept orders to repurchase shares from Selling Dealers for their customers. Shares will be","page_number":163,"box":{"x":101,"y":634,"width":800,"height":12}},{"id":"0f4fc068-b891-44ac-b6fc-cdfbf74c2ce8","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":163,"box":{"x":70,"y":649,"width":833,"height":12}},{"id":"a8d66770-3ea3-497a-b303-75a99ae42fcf","block_type":"box","text":"authorized by the Distributor by contract to accept such orders. As to repurchase orders received by Selling Dealers","page_number":163,"box":{"x":69,"y":665,"width":822,"height":11}},{"id":"e8108a5e-9c13-4fc1-8d36-01ffbfb2e557","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":163,"box":{"x":70,"y":680,"width":809,"height":11}},{"id":"ad5c111e-1f6a-4647-b502-8dd5cee70689","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":163,"box":{"x":69,"y":695,"width":831,"height":11}},{"id":"5d33cc8b-2d7d-4587-aba6-1f71f2f24d77","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":163,"box":{"x":70,"y":710,"width":796,"height":11}},{"id":"a8baa7fd-43e4-448a-b7f7-1f729d41b492","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":163,"box":{"x":69,"y":725,"width":812,"height":11}},{"id":"f327b570-9a3c-42c5-b637-e8d58f45370b","block_type":"box","text":"next business day.","page_number":163,"box":{"x":69,"y":740,"width":130,"height":11}},{"id":"4099b1d1-c0f4-4180-a89f-1b9f70a6b112","block_type":"box","text":"These repurchase arrangements are for your convenience and do not involve a charge by the Fund (other than","page_number":163,"box":{"x":101,"y":763,"width":783,"height":11}},{"id":"a0f039db-bcf0-414c-92d7-96671453f720","block_type":"box","text":"any applicable CDSC or redemption fee). However, Selling Dealers may charge a processing fee in connection with","page_number":163,"box":{"x":69,"y":778,"width":813,"height":11}},{"id":"33f464d1-6503-4cc2-8ccb-b7752bdcb7b3","block_type":"box","text":"such transactions. In addition, securities firms that do not have selected dealer agreements with the Distributor may","page_number":163,"box":{"x":69,"y":793,"width":832,"height":11}},{"id":"9f1eb15a-7bf7-4c80-b0d9-e86c93df4bf8","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":163,"box":{"x":70,"y":808,"width":814,"height":11}},{"id":"29a11d89-1749-4c63-a00a-60f28b389885","block_type":"box","text":"reject any order for repurchase. A shareholder whose order for repurchase is rejected by a Fund, however, may","page_number":163,"box":{"x":69,"y":823,"width":788,"height":11}},{"id":"2b5d1023-f58f-4de4-9d4a-90e2677b74bc","block_type":"box","text":"redeem shares as set out above.","page_number":163,"box":{"x":69,"y":839,"width":235,"height":8}},{"id":"710ecede-af38-45d3-95c1-432176c592c3","block_type":"box","text":"II-117","page_number":163,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"257bb608-c10d-4558-9750-a695180f74c3","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":163,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4225c397-ab15-4171-abce-b91f55d6f222","block_type":"box","text":"Reinstatement Privilege — Investor A and Investor P Shares","page_number":164,"box":{"x":69,"y":45,"width":440,"height":11}},{"id":"21d054d5-a0cd-4ea0-9d7b-f37e5d6df700","block_type":"box","text":"Upon redemption of Investor A, Investor A1, Investor P or Institutional Shares, as applicable, shareholders may","page_number":164,"box":{"x":102,"y":67,"width":791,"height":11}},{"id":"f80e7347-e295-45fc-b7f8-07f86d6efc69","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":164,"box":{"x":69,"y":82,"width":815,"height":12}},{"id":"92775d49-860e-4d1d-a6bc-e8d08b0aebe7","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":164,"box":{"x":69,"y":98,"width":822,"height":11}},{"id":"c7fb9bb1-9bbc-4865-aecc-14ee9607e921","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":164,"box":{"x":68,"y":113,"width":806,"height":11}},{"id":"b9a53095-9bf1-45a2-a7c9-61d6c61bb159","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":164,"box":{"x":69,"y":128,"width":768,"height":11}},{"id":"9c92aeed-4989-42de-a23b-aea9e1b94ddf","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":164,"box":{"x":70,"y":143,"width":827,"height":11}},{"id":"76faba0f-60a4-4393-920f-5b2117b03e5f","block_type":"box","text":"this privilege, the Transfer Agent must receive written notification from the shareholder of record or the registered","page_number":164,"box":{"x":68,"y":158,"width":809,"height":11}},{"id":"df0dba54-6b11-49d5-8449-1d8db9691c0d","block_type":"box","text":"representative of record, at the time of purchase. Investors should consult a tax advisor concerning the tax","page_number":164,"box":{"x":69,"y":173,"width":764,"height":11}},{"id":"4d1f25d8-7298-4f6c-8a4d-4b52fb887506","block_type":"box","text":"consequences of exercising this reinstatement privilege.","page_number":164,"box":{"x":69,"y":188,"width":400,"height":12}},{"id":"eb551931-0e9f-413d-a8ab-c3630c19123c","block_type":"box","text":"SHAREHOLDER SERVICES","page_number":164,"box":{"x":384,"y":218,"width":210,"height":9}},{"id":"c5e5d684-8b1f-45c1-b159-546ce9211239","block_type":"box","text":"Each Fund offers one or more of the shareholder services described below that are designed to facilitate","page_number":164,"box":{"x":102,"y":241,"width":747,"height":11}},{"id":"2116d510-8f41-4cd9-8ed2-23815c2c2956","block_type":"box","text":"investment in its shares. You can obtain more information about these services from each Fund by calling the","page_number":164,"box":{"x":70,"y":256,"width":781,"height":11}},{"id":"0b6bb5c1-fa23-471d-908d-8ae8590df240","block_type":"box","text":"telephone number on the cover page, or from the Distributor, your financial adviser, your selected securities dealer or","page_number":164,"box":{"x":68,"y":271,"width":836,"height":11}},{"id":"9be5e039-6b9a-416e-aa2f-4c47d2de2d3d","block_type":"box","text":"other financial intermediary. Cer tain of these services are available only to U.S. investors.","page_number":164,"box":{"x":69,"y":286,"width":641,"height":11}},{"id":"c8fce782-48ff-425d-8136-023481a0c2c0","block_type":"box","text":"Investment Account","page_number":164,"box":{"x":69,"y":316,"width":146,"height":9}},{"id":"7ce44e92-ee2c-4cb6-9188-3768177043fd","block_type":"box","text":"If your account is maintained at the Transfer Agent (an “Investment Account”) you will receive statements, at","page_number":164,"box":{"x":102,"y":339,"width":774,"height":11}},{"id":"dad57fa9-8638-4911-81e6-0252a0c77102","block_type":"box","text":"least quar terly, from the Transfer Agent. These statements will serve as confirmations for automatic investment","page_number":164,"box":{"x":70,"y":354,"width":796,"height":11}},{"id":"5806d726-0a81-45e0-a25d-a6f051d28427","block_type":"box","text":"purchases and the reinvestment of dividends. The statements also will show any other activity in your Investment","page_number":164,"box":{"x":70,"y":369,"width":807,"height":11}},{"id":"47b1b693-88b9-4f8a-bfb0-49085b6d67c8","block_type":"box","text":"Account since the last statement. You also will receive separate confirmations for each purchase or sale transaction","page_number":164,"box":{"x":68,"y":384,"width":830,"height":11}},{"id":"ac27c57c-9a44-466d-9c5c-7ca15bfcc32a","block_type":"box","text":"other than automatic investment purchases and the reinvestment of dividends. If your Investment Account is held at","page_number":164,"box":{"x":69,"y":399,"width":829,"height":11}},{"id":"b9d3ddf2-c116-4a25-a3d9-674541b7625d","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":164,"box":{"x":68,"y":414,"width":815,"height":12}},{"id":"13c5aaa2-e8fd-4f32-a209-72d19a646a6c","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":164,"box":{"x":70,"y":429,"width":781,"height":12}},{"id":"8a0bf148-3a19-4504-abe0-b67b946c2e6f","block_type":"box","text":"selected securities dealer or other financial intermediary. If you transfer shares out of an account maintained with a","page_number":164,"box":{"x":69,"y":445,"width":825,"height":11}},{"id":"b6682e39-f898-45fa-b132-8e64090f71a4","block_type":"box","text":"selected securities dealer or other financial intermediary, an Investment Account in your name may be opened","page_number":164,"box":{"x":69,"y":460,"width":785,"height":11}},{"id":"d84e6efa-b20b-4317-92bf-f4c78f812444","block_type":"box","text":"automatically at the Transfer Agent.","page_number":164,"box":{"x":69,"y":475,"width":251,"height":11}},{"id":"140e59a3-2126-4457-a9cf-e33b98330610","block_type":"box","text":"You may transfer Fund shares from a selected securities dealer or other financial intermediary to another","page_number":164,"box":{"x":101,"y":498,"width":750,"height":11}},{"id":"9355bf82-249b-49dc-b759-3e098202db6d","block_type":"box","text":"securities dealer or other financial intermediary that has entered into an agreement with the Distributor. Cer tain","page_number":164,"box":{"x":69,"y":513,"width":797,"height":11}},{"id":"f563d56d-d96f-49d5-b9d6-2f34561dbcbd","block_type":"box","text":"shareholder services may not be available for the transferred shares. All future trading of these assets must be","page_number":164,"box":{"x":69,"y":528,"width":797,"height":11}},{"id":"2b93aa25-0ee1-4b0d-bad5-ac6d6aaa163a","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":164,"box":{"x":69,"y":543,"width":826,"height":11}},{"id":"ba58c759-06f2-4b02-8294-6b8f0884e971","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":164,"box":{"x":68,"y":558,"width":792,"height":11}},{"id":"124efe94-1a47-49e2-af0b-7e95f6015258","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":164,"box":{"x":69,"y":573,"width":824,"height":11}},{"id":"088d9317-dc27-49fa-affc-fd097ba13fde","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":164,"box":{"x":69,"y":588,"width":820,"height":11}},{"id":"0185d492-b754-48ad-8829-6c163bff5bf3","block_type":"box","text":"Transfer Agent registered in the name of the securities dealer or other financial intermediary for your benefit whether","page_number":164,"box":{"x":68,"y":603,"width":833,"height":12}},{"id":"5463d73b-75f6-435e-a74a-d5c130344efb","block_type":"box","text":"the securities dealer or other financial intermediary has entered into a selected dealer agreement or not. In the","page_number":164,"box":{"x":68,"y":618,"width":795,"height":12}},{"id":"18a22222-6dad-4c6c-a1eb-da10e9508ed3","block_type":"box","text":"interest of economy and convenience and because of the operating procedures of each Fund, share cer tificates will","page_number":164,"box":{"x":70,"y":634,"width":822,"height":11}},{"id":"7480e16a-fbe4-443f-b61b-9bf2b3270eb4","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":164,"box":{"x":69,"y":649,"width":814,"height":11}},{"id":"d03b006f-f345-4cec-9408-a2b31ebf2895","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":164,"box":{"x":68,"y":664,"width":822,"height":11}},{"id":"7bbe21b2-9673-42d9-8867-b14adf70ae7e","block_type":"box","text":"issued.","page_number":164,"box":{"x":70,"y":679,"width":49,"height":9}},{"id":"f77d3a73-e417-4bb4-8349-f2c4f28169c0","block_type":"box","text":"If you are considering transferring a tax-deferred retirement account, such as an individual retirement account,","page_number":164,"box":{"x":102,"y":702,"width":785,"height":11}},{"id":"abf715b5-2d6b-43fe-92e0-0943aa5f4279","block_type":"box","text":"from one selected securities dealer to another securities dealer or other financial intermediary, you should be aware","page_number":164,"box":{"x":68,"y":717,"width":830,"height":11}},{"id":"aca7b3ab-16cc-474e-8d21-84337aca1049","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":164,"box":{"x":68,"y":732,"width":790,"height":11}},{"id":"c5a1b370-1924-4635-908c-1c702ab8cf89","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":164,"box":{"x":69,"y":747,"width":831,"height":11}},{"id":"89f0768b-31d5-470a-90fd-a37e374187c3","block_type":"box","text":"to maintain a retirement account at the original selected securities dealer for those shares.","page_number":164,"box":{"x":68,"y":762,"width":652,"height":11}},{"id":"28dc5293-9548-4c10-9c6a-9a91e97385a1","block_type":"box","text":"Exchange Privilege","page_number":164,"box":{"x":69,"y":792,"width":138,"height":11}},{"id":"725f1427-1e55-495f-82b2-8a1ca00898ed","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":164,"box":{"x":102,"y":815,"width":797,"height":11}},{"id":"b67bfedf-6866-49c4-8bee-9bfc842004d8","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":164,"box":{"x":69,"y":830,"width":832,"height":11}},{"id":"0c8c9bd3-84a5-4858-9e70-4ab2408ac4e9","block_type":"box","text":"The minimum amount for exchanges of Investor class shares is $1,000, although you may exchange less than","page_number":164,"box":{"x":68,"y":845,"width":788,"height":12}},{"id":"da68a5a2-cc1b-4818-8f4c-a63be57ece6b","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":164,"box":{"x":69,"y":860,"width":796,"height":12}},{"id":"34551d57-8943-40b3-97d6-32d67bbf8aab","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":164,"box":{"x":69,"y":875,"width":824,"height":12}},{"id":"39a8b181-4265-4314-bafa-0966f6fbb79e","block_type":"box","text":"closed to new investors. Before effecting an exchange, you should obtain a currently effective prospectus of the fund","page_number":164,"box":{"x":69,"y":891,"width":835,"height":11}},{"id":"51ebaa78-649b-4e34-abd0-e1b7f06451dd","block_type":"box","text":"II-118","page_number":164,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"1228928a-6337-42de-b8db-c684fc5998a1","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":164,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1e720b9b-6465-4764-994c-305d7bbfa87c","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":165,"box":{"x":70,"y":45,"width":820,"height":11}},{"id":"3d416211-5042-441b-ab52-ffc4eccd608d","block_type":"box","text":"shares and a purchase of the acquired shares for U.S. federal income tax purposes.","page_number":165,"box":{"x":69,"y":60,"width":600,"height":11}},{"id":"5623326a-f64c-4e3d-ba55-c6bf6cfa44ab","block_type":"box","text":"Exchanges of Investor A, Investor A1, Investor P, Class K, Institutional and Class G Shares.","page_number":165,"box":{"x":102,"y":82,"width":648,"height":12}},{"id":"6849a9b0-86de-462f-a247-9dfc83a15ec7","block_type":"box","text":"Institutional Shares","page_number":165,"box":{"x":757,"y":83,"width":137,"height":8}},{"id":"57c22166-6d06-4e0e-b8aa-af9712b198d6","block_type":"box","text":"are exchangeable with Institutional Shares of other Funds. Investor A and Investor A1 Shares are exchangeable for","page_number":165,"box":{"x":69,"y":98,"width":817,"height":11}},{"id":"bd419003-b7ad-4a1c-a867-33a6ccf7c1c1","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":165,"box":{"x":70,"y":113,"width":798,"height":11}},{"id":"6dccfcd8-25c3-4568-b92f-ea1b8e5cabbf","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":165,"box":{"x":69,"y":128,"width":838,"height":11}},{"id":"6686ad73-5f77-41c1-bb5d-1de8d82bcd1a","block_type":"box","text":"intermediary. Class K Shares are exchangeable for Class K Shares of other Funds. Class G Shares are exchangeable","page_number":165,"box":{"x":70,"y":143,"width":834,"height":11}},{"id":"a0c3b5f1-54d0-4c67-bd87-360437ea593e","block_type":"box","text":"for Class G Shares of other Funds.","page_number":165,"box":{"x":68,"y":158,"width":246,"height":9}},{"id":"9b0540bc-372d-4da0-bf0c-6b8651e6e1ed","block_type":"box","text":"Exchanges of Institutional Shares outstanding for Institutional Shares of a second fund or for shares of a money","page_number":165,"box":{"x":102,"y":181,"width":800,"height":11}},{"id":"02da9828-cad9-4d83-9e21-441e71071a04","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":165,"box":{"x":69,"y":196,"width":826,"height":11}},{"id":"c06176c5-0fbb-486d-8da6-b82e23fd894f","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":165,"box":{"x":69,"y":211,"width":795,"height":11}},{"id":"7177590c-b794-4ae6-b000-c5f43926f3ff","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":165,"box":{"x":69,"y":226,"width":797,"height":11}},{"id":"381ffa01-e4af-4eaf-9797-d7b9da371b7e","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":165,"box":{"x":70,"y":241,"width":814,"height":11}},{"id":"aa484b81-3462-4c19-ba0a-40503afabdf1","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":165,"box":{"x":69,"y":256,"width":796,"height":12}},{"id":"4e8d38cb-3f4d-475b-a842-fb504960e2d2","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":165,"box":{"x":69,"y":271,"width":828,"height":12}},{"id":"82c245cb-d3b8-41fb-80e5-c0e42f728330","block_type":"box","text":"G Shares of a second fund are effected on the basis of relative NAV per share.","page_number":165,"box":{"x":69,"y":286,"width":561,"height":11}},{"id":"4f466028-17df-403b-9e9a-721d05f5be53","block_type":"box","text":"Exchanges of Investor C Shares.","page_number":165,"box":{"x":102,"y":309,"width":229,"height":11}},{"id":"3ca9e69f-19a1-419b-9942-feca46bcee0b","block_type":"box","text":"Shareholders of cer tain Funds with Investor C Shares outstanding (“outstanding","page_number":165,"box":{"x":338,"y":309,"width":570,"height":11}},{"id":"41ebcc57-1aab-4429-871b-081e29e33e0d","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":165,"box":{"x":70,"y":324,"width":827,"height":12}},{"id":"052155ff-369c-48cc-ae8e-4000e38c98ff","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":165,"box":{"x":68,"y":339,"width":839,"height":12}},{"id":"6f1ffc25-8381-4e02-a937-d19040008dcc","block_type":"box","text":"the payment of any CDSC. Cer tain Funds impose different CDSC schedules. For purposes of computing the CDSC","page_number":165,"box":{"x":68,"y":355,"width":811,"height":11}},{"id":"4657c4ef-1e2e-4f11-99b6-b56479cd8385","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":165,"box":{"x":69,"y":370,"width":827,"height":11}},{"id":"35740d73-303a-479f-a42b-4f9037b434ba","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":165,"box":{"x":68,"y":385,"width":781,"height":11}},{"id":"20b54145-637b-4a01-9d61-7eeb03b780aa","block_type":"box","text":"towards the holding period of the new Investor C Shares or new money market fund Shares.","page_number":165,"box":{"x":68,"y":400,"width":654,"height":11}},{"id":"04bebfd9-4de9-45a0-9f7e-00ab45d29bc7","block_type":"box","text":"Exchanges of Service Shares.","page_number":165,"box":{"x":102,"y":423,"width":211,"height":11}},{"id":"7ab5780b-1692-439c-9a06-38def4eaacbc","block_type":"box","text":"Service Shares can be exchanged for Service Shares of Funds that are covered by","page_number":165,"box":{"x":319,"y":423,"width":588,"height":11}},{"id":"3f1bc97b-719e-4417-87f0-81850d79aaac","block_type":"box","text":"selected dealer agreements with the Distributor.","page_number":165,"box":{"x":69,"y":438,"width":342,"height":11}},{"id":"8c7a355d-3290-46b0-8f9b-f4e2c6f9d0c1","block_type":"box","text":"Exchanges for Shares of a Money Market Fund.","page_number":165,"box":{"x":102,"y":460,"width":335,"height":12}},{"id":"b141010c-b525-4309-b61e-421fa6171c31","block_type":"box","text":"You may exchange any class of Investor class shares, excluding","page_number":165,"box":{"x":443,"y":460,"width":455,"height":12}},{"id":"3e92059f-f1d6-41f7-a071-49cbae264bc1","block_type":"box","text":"Investor P Shares, for shares of an affiliated money market fund. If you exchange into BlackRock Summit Cash","page_number":165,"box":{"x":70,"y":475,"width":788,"height":12}},{"id":"6dbc4057-8a67-46dc-bba2-0f39e4cc1dd8","block_type":"box","text":"Reserves Fund (“Summit”), a series of BlackRock Financial Institutions Series Trust, you will receive one of two","page_number":165,"box":{"x":70,"y":491,"width":793,"height":11}},{"id":"3205f3c6-7ae4-4571-b6d5-960b7459f922","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":165,"box":{"x":69,"y":506,"width":802,"height":11}},{"id":"0a088304-52d0-4183-a2db-52ccbe96c1cf","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":165,"box":{"x":69,"y":521,"width":824,"height":11}},{"id":"ec27a4e7-d004-4d35-aad1-5c59458a1a95","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":165,"box":{"x":69,"y":536,"width":805,"height":11}},{"id":"04fcf261-1444-4882-a979-1314f2a7c3d7","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":165,"box":{"x":69,"y":551,"width":827,"height":11}},{"id":"93c39d26-d885-4b4f-8958-e9d30d417d8e","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":165,"box":{"x":69,"y":566,"width":758,"height":11}},{"id":"4e730f74-b5c6-42d7-8a32-cb3245d43f13","block_type":"box","text":"satisfaction of the holding period requirement for purposes of reducing any CDSC. Investor C Shares of Summit are","page_number":165,"box":{"x":69,"y":581,"width":822,"height":12}},{"id":"e8687421-747a-4c45-bd16-8ac1b565ad32","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":165,"box":{"x":69,"y":596,"width":782,"height":12}},{"id":"d4684a0d-9e3f-4949-8000-2fb4577da8b2","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":165,"box":{"x":70,"y":612,"width":814,"height":11}},{"id":"4d282d19-0af1-42c2-9ca1-f50ad4417905","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":165,"box":{"x":69,"y":627,"width":830,"height":11}},{"id":"afe6e17a-ecb2-4f32-ad0c-98bdc181c6db","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":165,"box":{"x":69,"y":642,"width":821,"height":11}},{"id":"bebebcd0-542c-4701-b001-3229f81f001e","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":165,"box":{"x":69,"y":657,"width":823,"height":11}},{"id":"55c88276-2127-44d8-bc18-1698f4ae8ccd","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":165,"box":{"x":70,"y":672,"width":781,"height":11}},{"id":"ebb60a0e-668f-4725-a0c3-c5a17abc6d2b","block_type":"box","text":"exchange.","page_number":165,"box":{"x":69,"y":687,"width":70,"height":11}},{"id":"cf7658f8-a96d-428a-b9a6-3f86849e4f48","block_type":"box","text":"Exchanges by Par ticipants in Cer tain Programs.","page_number":165,"box":{"x":102,"y":710,"width":337,"height":11}},{"id":"0abc83da-60b6-46dd-ac3e-2774c76cc9b5","block_type":"box","text":"The exchange privilege may be modified with respect to cer tain","page_number":165,"box":{"x":445,"y":710,"width":448,"height":11}},{"id":"bf3e9636-98ba-4337-9f0b-4005ad5e7880","block_type":"box","text":"par ticipants in mutual fund advisory programs and other fee-based programs sponsored by the Manager, an affiliate","page_number":165,"box":{"x":70,"y":725,"width":828,"height":11}},{"id":"588978f3-5094-47e2-85fb-d2a85a66e0bd","block_type":"box","text":"of the Manager, or selected securities dealers or other financial intermediaries that have an agreement with the","page_number":165,"box":{"x":69,"y":740,"width":796,"height":11}},{"id":"d44c6ef0-9956-4441-9c6c-5843316291d9","block_type":"box","text":"Distributor. See “Fee-Based Programs” below.","page_number":165,"box":{"x":70,"y":755,"width":324,"height":11}},{"id":"873fecd1-9aeb-4e98-a2c7-770a77fc0e74","block_type":"box","text":"Exercise of the Exchange Privilege.","page_number":165,"box":{"x":102,"y":778,"width":245,"height":11}},{"id":"91a032c2-342e-4285-9291-097780d52cab","block_type":"box","text":"To exercise the exchange privilege, you should contact your financial adviser","page_number":165,"box":{"x":353,"y":778,"width":543,"height":11}},{"id":"946f52bc-9991-461d-8cb1-bec95c6efe55","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":165,"box":{"x":69,"y":793,"width":794,"height":11}},{"id":"9d78cfed-4360-44e9-8a30-648f76a7a0f5","block_type":"box","text":"exercise the exchange privilege by wire through your securities dealer or other financial intermediary. Each Fund","page_number":165,"box":{"x":69,"y":808,"width":795,"height":11}},{"id":"0925b0f9-4b6e-4f80-b13c-787700499712","block_type":"box","text":"reserves the right to require a properly completed exchange application.","page_number":165,"box":{"x":69,"y":823,"width":512,"height":12}},{"id":"05c16845-1418-4797-8c42-e746d668e012","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":165,"box":{"x":101,"y":846,"width":772,"height":11}},{"id":"856c7e6a-b8fd-431d-992a-854cace0499d","block_type":"box","text":"Transfer Agent at the following address: P.O. Box 534429, Pittsburgh, Pennsylvania 15253-4429. Shareholders are","page_number":165,"box":{"x":68,"y":861,"width":824,"height":11}},{"id":"1f71622d-fa03-4d6a-8e56-f92e2611fa52","block_type":"box","text":"automatically provided with telephone exchange privileges when opening an account, unless they indicate on the","page_number":165,"box":{"x":69,"y":876,"width":801,"height":11}},{"id":"fcc305de-9f87-4c9b-955a-33120069c201","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":165,"box":{"x":68,"y":891,"width":817,"height":12}},{"id":"7918c104-30eb-4d31-b859-5a0714f408ae","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":165,"box":{"x":69,"y":906,"width":826,"height":12}},{"id":"684c9b53-2f65-4ca0-8431-2e277563673c","block_type":"box","text":"II-119","page_number":165,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"5d3a412e-dbfe-46f2-be44-04561dbd5e19","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":165,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"72f61c03-8e5e-4963-b1a2-c58edfbab0ca","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":166,"box":{"x":69,"y":45,"width":840,"height":11}},{"id":"bd905e7e-f509-45ee-a665-9f4415fdff8c","block_type":"box","text":"telephone at (800) 441-7762 to request the exchange. During periods of substantial economic or market change,","page_number":166,"box":{"x":68,"y":60,"width":811,"height":11}},{"id":"0b1cb35d-e942-4bd8-966a-10566b4f6d52","block_type":"box","text":"telephone exchanges may be difficult to complete and shareholders may have to submit exchange requests to the","page_number":166,"box":{"x":68,"y":75,"width":815,"height":11}},{"id":"5c5ad7c8-e17e-430e-9e59-39842899c766","block_type":"box","text":"Transfer Agent in writing.","page_number":166,"box":{"x":68,"y":90,"width":175,"height":11}},{"id":"81f59980-3839-472b-9069-619fd7fd17b0","block_type":"box","text":"If the exchanging shareholder does not currently own shares of the investment por tfolio whose shares are being","page_number":166,"box":{"x":102,"y":113,"width":800,"height":11}},{"id":"aa4f1cd3-8ecc-4a3b-8fc9-ac483f04e687","block_type":"box","text":"acquired, a new account will be established with the same registration, dividend and capital gain options and broker","page_number":166,"box":{"x":69,"y":128,"width":828,"height":11}},{"id":"52949065-03cf-43c8-b5ca-d5196d912138","block_type":"box","text":"of record as the account from which shares are exchanged, unless otherwise specified in writing by the shareholder","page_number":166,"box":{"x":69,"y":143,"width":826,"height":11}},{"id":"b37358b0-09c6-4fc2-840c-6d1a7d5adcae","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":166,"box":{"x":68,"y":158,"width":797,"height":11}},{"id":"5f0f4fc1-f2d4-45d7-a4a9-31bb399c7256","block_type":"box","text":"Automatic Investment Program or establish a Systematic Withdrawal Plan for the new account, however, an","page_number":166,"box":{"x":68,"y":173,"width":763,"height":11}},{"id":"96da47f3-a166-41b5-9eb0-a0e71645f316","block_type":"box","text":"exchanging shareholder must file a specific written request.","page_number":166,"box":{"x":69,"y":188,"width":424,"height":12}},{"id":"3bca636a-7ab7-48cb-b3b2-4c10d32825e9","block_type":"box","text":"Any share exchange must satisfy the requirements relating to the minimum initial investment requirement, and","page_number":166,"box":{"x":101,"y":211,"width":790,"height":11}},{"id":"76763169-9ffe-4965-93d0-33aa7e92033c","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":166,"box":{"x":69,"y":226,"width":808,"height":11}},{"id":"6c7ba385-b500-4b6d-a3b3-58c4f3171b57","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":166,"box":{"x":69,"y":241,"width":771,"height":11}},{"id":"79478a7c-6c46-4742-96e5-eea68410ad2c","block_type":"box","text":"exchange request, shareholders should consult a tax or other financial adviser and should consider the investment","page_number":166,"box":{"x":69,"y":256,"width":819,"height":12}},{"id":"96fa043d-ac02-4784-a1d6-4bc222fdce6b","block_type":"box","text":"objective, policies and restrictions of the investment por tfolio into which the shareholder is making an exchange.","page_number":166,"box":{"x":69,"y":271,"width":802,"height":12}},{"id":"139abc14-65aa-41f4-aeba-b005bd9f4690","block_type":"box","text":"Brokers may charge a fee for handling exchanges.","page_number":166,"box":{"x":70,"y":286,"width":354,"height":12}},{"id":"304b4578-fa66-45ca-ac8d-d11036d45021","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":166,"box":{"x":101,"y":309,"width":782,"height":11}},{"id":"191b667f-5a73-4852-8d50-1542a34163a9","block_type":"box","text":"given to shareholders of any material modification or termination except where notice is not required. The Funds","page_number":166,"box":{"x":68,"y":324,"width":800,"height":12}},{"id":"cafc9421-a3be-4f75-b838-0c905cfaabec","block_type":"box","text":"reserve the right to reject any telephone exchange request. Telephone exchanges may be subject to limitations as to","page_number":166,"box":{"x":69,"y":340,"width":831,"height":11}},{"id":"246cefd5-350e-4fbe-8f11-fbdf102357bd","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":166,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"63f14d11-1081-4bee-8acd-5373b1c0d129","block_type":"box","text":"do not operate to the disadvantage of any por tfolio or its shareholders.","page_number":166,"box":{"x":69,"y":370,"width":506,"height":11}},{"id":"92cb7f93-8923-4803-b00b-c62031d0d586","block_type":"box","text":"The Funds, the Administrators and BRIL will employ reasonable procedures to confirm that instructions","page_number":166,"box":{"x":101,"y":392,"width":733,"height":12}},{"id":"eba0b41e-3eef-4494-a1aa-2498dab765c3","block_type":"box","text":"communicated by telephone are genuine. The Funds, the Administrators and BRIL will not be liable for any loss,","page_number":166,"box":{"x":69,"y":407,"width":793,"height":12}},{"id":"680d3cf3-77b3-4fc6-8c8b-127f3311765c","block_type":"box","text":"liability, cost or expense for acting upon telephone instructions reasonably believed to be genuine in accordance with","page_number":166,"box":{"x":70,"y":423,"width":832,"height":11}},{"id":"f787a96f-deab-4dcb-b191-e6d4d50ade18","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":166,"box":{"x":69,"y":438,"width":785,"height":11}},{"id":"68bfc46a-cb28-4b1a-8eff-82ad7001c3ef","block_type":"box","text":"telephonic or written exchange instructions from any person representing himself to be the investor and believed by","page_number":166,"box":{"x":68,"y":453,"width":825,"height":11}},{"id":"40508b4f-2973-43cc-acaa-b3240f495274","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":166,"box":{"x":68,"y":468,"width":837,"height":11}},{"id":"811c5e9f-5f24-474c-b48e-b0d56bc97a1b","block_type":"box","text":"binding. The exchange privilege may be modified or terminated at any time upon 60 days’ notice to affected","page_number":166,"box":{"x":69,"y":483,"width":767,"height":11}},{"id":"3e08b948-bb47-4891-9153-afddbb5f80ad","block_type":"box","text":"shareholders. The exchange privilege is only available in states where the exchange may legally be made.","page_number":166,"box":{"x":69,"y":498,"width":750,"height":11}},{"id":"b3069962-db8f-4bf1-8904-16eaea711177","block_type":"box","text":"Each Fund reserves the right to limit the number of times an investor may exercise the exchange privilege.","page_number":166,"box":{"x":102,"y":521,"width":757,"height":11}},{"id":"e68b4acf-4a7d-4258-bab2-969addb6703a","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":166,"box":{"x":69,"y":536,"width":837,"height":11}},{"id":"035de80f-f104-4e72-bb12-7f16c0e8fa99","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":166,"box":{"x":69,"y":551,"width":805,"height":11}},{"id":"cc122b21-ad31-4877-ba9d-86903ab8bf35","block_type":"box","text":"exchange legally may be made. The exchange privilege may be applicable to other new mutual funds whose shares","page_number":166,"box":{"x":69,"y":566,"width":817,"height":11}},{"id":"d7bd7a5a-4233-4194-bba5-bf30071f9b9a","block_type":"box","text":"may be distributed by the Distributor.","page_number":166,"box":{"x":69,"y":582,"width":262,"height":10}},{"id":"4a1c471b-5b15-4b68-adb5-7c27c72cea5f","block_type":"box","text":"Participation in Fee-Based Programs","page_number":166,"box":{"x":69,"y":612,"width":266,"height":11}},{"id":"385c9059-ac2b-4303-8dce-e798f3f41004","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":166,"box":{"x":102,"y":634,"width":780,"height":12}},{"id":"a0f36988-021e-4ea3-b14b-5f197fc18133","block_type":"box","text":"securities dealers or other financial intermediaries that have agreements with the Distributor or in cer tain fee-based","page_number":166,"box":{"x":69,"y":649,"width":826,"height":12}},{"id":"d8a4d6f5-9211-4c80-956c-f3d00d961867","block_type":"box","text":"programs in which BlackRock par ticipates, you may be able to buy Institutional Shares, including by exchanges from","page_number":166,"box":{"x":70,"y":664,"width":825,"height":12}},{"id":"c3d5de4c-b9c9-4200-b033-3753e2002f81","block_type":"box","text":"other share classes. Sales charges on the shares being exchanged may be reduced or waived under cer tain","page_number":166,"box":{"x":69,"y":680,"width":770,"height":11}},{"id":"cc156c13-2e12-4932-8513-88861f26f549","block_type":"box","text":"circumstances. You generally cannot transfer shares held through a fee-based program into another account. Instead,","page_number":166,"box":{"x":69,"y":695,"width":837,"height":11}},{"id":"6b21bbc6-b5c6-4ce6-81c2-97289a218dce","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":166,"box":{"x":70,"y":710,"width":808,"height":11}},{"id":"669602db-9b71-4b69-8177-3df9046588f8","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":166,"box":{"x":70,"y":725,"width":838,"height":11}},{"id":"da22aeec-49ea-4f56-9c98-26209662fa62","block_type":"box","text":"and you may pay any applicable sales charges or redemption fee. Please speak to your financial intermediary for","page_number":166,"box":{"x":69,"y":740,"width":804,"height":11}},{"id":"3bf2087a-9135-4e59-9ee0-4605d68e1145","block_type":"box","text":"information about specific policies and procedures applicable to your account.","page_number":166,"box":{"x":70,"y":755,"width":555,"height":11}},{"id":"b4f84160-1493-4ecc-b04c-2eb3876a37ef","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":166,"box":{"x":102,"y":778,"width":788,"height":11}},{"id":"6f4f5f55-018f-4473-9b8f-bd61e09434dc","block_type":"box","text":"an account. In cer tain circumstances, when a shareholder chooses to continue to hold the shares, whatever share","page_number":166,"box":{"x":69,"y":793,"width":817,"height":10}},{"id":"15e0640d-aef0-4eae-98b1-15d16c7e8d99","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":166,"box":{"x":69,"y":808,"width":796,"height":11}},{"id":"b4ac5340-d146-4e77-93b2-b4dd2e72dde9","block_type":"box","text":"periods within the program may be subject to a fee upon redemption. Shareholders that held Investor A or","page_number":166,"box":{"x":70,"y":823,"width":754,"height":12}},{"id":"2964ebf3-941e-41c8-be17-18893450ba04","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":166,"box":{"x":70,"y":838,"width":820,"height":12}},{"id":"2d00d4f2-2c78-4ad9-a571-7c1bea964128","block_type":"box","text":"Fund, but may be subject to upfront sales charges with respect to Investor A Shares. Additional purchases of","page_number":166,"box":{"x":70,"y":853,"width":777,"height":12}},{"id":"534ddfb4-9d42-41a9-a728-68f1aa63eaad","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":166,"box":{"x":70,"y":869,"width":791,"height":11}},{"id":"8310cea3-0c6c-45a4-aa6c-8f245b1ef9ca","block_type":"box","text":"eligible to purchase Institutional Shares. Please speak to your financial intermediary for more information.","page_number":166,"box":{"x":69,"y":884,"width":756,"height":11}},{"id":"669be9f1-5974-485c-ba51-d083a38e87df","block_type":"box","text":"II-120","page_number":166,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"c2f3411d-20e2-470f-b261-582b89cbb070","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":166,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1213162b-4cce-4cd9-83b8-857c8401a5a8","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":167,"box":{"x":102,"y":45,"width":793,"height":11}},{"id":"0f8855e5-520f-4536-8ae2-105ac2275e8d","block_type":"box","text":"fee-based program or upon termination of the fee-based program) or otherwise in accordance with the financial","page_number":167,"box":{"x":68,"y":60,"width":791,"height":11}},{"id":"9a02cc8d-0620-4cba-9eb4-bc78fe83c52a","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":167,"box":{"x":70,"y":75,"width":830,"height":11}},{"id":"94e6a479-3567-4473-bdfb-2188b1278f2a","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":167,"box":{"x":69,"y":90,"width":807,"height":11}},{"id":"6505cb98-bab6-4873-bb52-10d347a666de","block_type":"box","text":"eligibility requirements of the new share class. Please speak to your financial intermediary for information about","page_number":167,"box":{"x":69,"y":105,"width":801,"height":11}},{"id":"5aa14fb3-5f4a-4e8f-b6c9-1c10fb14cac6","block_type":"box","text":"specific policies and procedures applicable to your account.","page_number":167,"box":{"x":69,"y":120,"width":424,"height":11}},{"id":"fc4e10c0-24d8-4430-95d0-76c02ed21de3","block_type":"box","text":"Details about the features of each fee-based program and the relevant charges, terms and conditions are","page_number":167,"box":{"x":102,"y":143,"width":752,"height":11}},{"id":"aa8b8065-2293-47b7-81c0-97635c3b34d0","block_type":"box","text":"included in the client agreement for each fee-based program and are available from your financial professional,","page_number":167,"box":{"x":70,"y":158,"width":789,"height":11}},{"id":"f9c17bf6-0bb9-40d2-947b-08831341dc57","block_type":"box","text":"selected securities dealer or other financial intermediary. Please speak to your financial intermediary for more","page_number":167,"box":{"x":69,"y":173,"width":785,"height":11}},{"id":"94b89bcc-7345-44fd-832e-cfb4f3c242b3","block_type":"box","text":"information.","page_number":167,"box":{"x":70,"y":188,"width":83,"height":9}},{"id":"56e297fb-9510-4183-b09e-4ba5995d729d","block_type":"box","text":"Retirement and Education Savings Plans","page_number":167,"box":{"x":69,"y":219,"width":296,"height":11}},{"id":"8f22237e-3e06-4b05-a855-7a4a6b9b4d78","block_type":"box","text":"Individual retirement accounts and other retirement and education savings plans are available from your financial","page_number":167,"box":{"x":102,"y":241,"width":805,"height":11}},{"id":"868c5a49-417f-41bf-8568-feb69c9ee6f7","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":167,"box":{"x":70,"y":256,"width":815,"height":11}},{"id":"bab6cabc-811d-4f75-bab4-ea1355c34b6c","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":167,"box":{"x":68,"y":271,"width":819,"height":12}},{"id":"3d309403-cc9f-4bbd-b8ec-1f46ab9eccc0","block_type":"box","text":"associated with investing through these plans. Information with respect to these plans is available on request from","page_number":167,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"34d4f352-1ddd-4d1c-8320-9b6168af62b6","block_type":"box","text":"your financial intermediary.","page_number":167,"box":{"x":68,"y":302,"width":191,"height":11}},{"id":"17f6a01f-01e4-4e7d-9908-fb6553730568","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":167,"box":{"x":102,"y":324,"width":796,"height":11}},{"id":"06c1aa56-5ad0-42dc-9d8b-2ac1d162535e","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":167,"box":{"x":68,"y":339,"width":784,"height":12}},{"id":"0881993b-c7fc-475f-a0d3-ebe9f242ebfa","block_type":"box","text":"distributed as well. Investors considering par ticipation in any retirement or education savings plan should review","page_number":167,"box":{"x":69,"y":355,"width":801,"height":11}},{"id":"e951fa61-070c-48c2-a52f-6e4fa1720363","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":167,"box":{"x":69,"y":370,"width":753,"height":11}},{"id":"07262df0-a849-4720-abf2-19a26f06e50e","block_type":"box","text":"establishment and maintenance of any such plan.","page_number":167,"box":{"x":69,"y":385,"width":354,"height":11}},{"id":"0abe78ba-f054-4ccb-bf32-aebaa89637cb","block_type":"box","text":"Automatic Investment Plans","page_number":167,"box":{"x":68,"y":415,"width":207,"height":9}},{"id":"1840350f-e6e2-4a9c-9f7b-5cda823ca193","block_type":"box","text":"Investor class shareholders and cer tain Service Share shareholders who were shareholders of the Compass","page_number":167,"box":{"x":102,"y":438,"width":773,"height":11}},{"id":"edc907af-8fb5-4904-8a58-577c34114d35","block_type":"box","text":"Capital Group of Funds at the time of its combination with The PNC","page_number":167,"box":{"x":69,"y":453,"width":477,"height":11}},{"id":"541ee61c-6202-4112-b1b0-a8be80e6008f","block_type":"box","text":"®","page_number":167,"box":{"x":547,"y":453,"width":6,"height":5}},{"id":"ceda7e65-cd81-40ff-ac0c-c263381c33cb","block_type":"box","text":"Fund in 1996 may arrange for periodic","page_number":167,"box":{"x":559,"y":453,"width":272,"height":11}},{"id":"b69d3e31-71f3-4a72-99e6-7d81378f340f","block_type":"box","text":"investments in that Fund through automatic deductions from a checking or savings account. The minimum pre","page_number":167,"box":{"x":70,"y":468,"width":787,"height":11}},{"id":"e2ae111a-467c-4072-ab98-bcfb19be7d3c","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":167,"box":{"x":69,"y":482,"width":822,"height":12}},{"id":"792ed9e8-6b6d-460b-8743-c27d2976de5b","block_type":"box","text":"your bank account is required. Contact your financial adviser or other financial intermediary for more information.","page_number":167,"box":{"x":68,"y":498,"width":805,"height":11}},{"id":"d73e354d-9fad-4f77-9f4b-805aa95a2187","block_type":"box","text":"Automatic Dividend Reinvestment Plan","page_number":167,"box":{"x":68,"y":529,"width":285,"height":8}},{"id":"b3683386-895c-4aae-8a3c-10131de540c2","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":167,"box":{"x":102,"y":551,"width":782,"height":11}},{"id":"7eb71b95-f09d-4840-84e0-79f3c0ded0b5","block_type":"box","text":"shareholders. All distributions are automatically reinvested at NAV in the form of additional full and fractional shares","page_number":167,"box":{"x":69,"y":566,"width":828,"height":11}},{"id":"7398e699-aae6-4228-898c-aa4919aa8669","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":167,"box":{"x":69,"y":581,"width":839,"height":9}},{"id":"41908896-5b5b-4aef-9032-3c460da2d625","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":167,"box":{"x":70,"y":596,"width":822,"height":12}},{"id":"407440e9-8ee8-4a6a-82c3-1c2e9f963d86","block_type":"box","text":"become effective with respect to dividends paid after its receipt by the Transfer Agent.","page_number":167,"box":{"x":69,"y":612,"width":614,"height":11}},{"id":"442034a3-b8f2-4f84-8879-a1da394edc05","block_type":"box","text":"Systematic Withdrawal Plans","page_number":167,"box":{"x":68,"y":642,"width":214,"height":11}},{"id":"41ad6ce9-4c4f-4dd1-8823-73f8c48a92a4","block_type":"box","text":"Shareholders may receive regular distributions from their accounts via a Systematic Withdrawal Plan (“SWP”).","page_number":167,"box":{"x":102,"y":664,"width":780,"height":12}},{"id":"8eb07add-73d4-4e44-bce4-f13da371e19a","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":167,"box":{"x":70,"y":679,"width":742,"height":12}},{"id":"21c92ec1-9b15-4c79-8aad-471453ffd872","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":167,"box":{"x":69,"y":694,"width":834,"height":12}},{"id":"8efd7bd7-dbb9-44ae-a314-8ab988e80cfe","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":167,"box":{"x":68,"y":710,"width":823,"height":11}},{"id":"6c712509-ee80-426c-96cf-b9277eba1045","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":167,"box":{"x":69,"y":725,"width":840,"height":11}},{"id":"aa948a28-44d2-4ee7-8aff-48a3b158efb1","block_type":"box","text":"by completing the Systematic Withdrawal Plan Application Form which may be obtained by visiting our website at","page_number":167,"box":{"x":69,"y":740,"width":800,"height":11}},{"id":"1e4475f2-e8be-4882-82b6-e20b3ccc0421","block_type":"box","text":"www.blackrock.com.","page_number":167,"box":{"x":68,"y":755,"width":142,"height":9}},{"id":"aef3ad3f-8b6b-4c48-a4ca-d9143a9f517b","block_type":"box","text":"Shareholders should realize that if withdrawals exceed income dividends their invested principal in the account","page_number":167,"box":{"x":102,"y":778,"width":789,"height":11}},{"id":"96774add-d32c-4c7b-86ab-4dde8d3bcb36","block_type":"box","text":"will be depleted. To par ticipate in the SWP, shareholders must have their dividends automatically reinvested.","page_number":167,"box":{"x":68,"y":793,"width":774,"height":11}},{"id":"80cbb763-adf1-4f8a-9202-2ee0f55b0d36","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":167,"box":{"x":69,"y":808,"width":815,"height":11}},{"id":"4d88b7f9-7467-47dd-a6e8-bb1af49bafd2","block_type":"box","text":"(800) 441-7762. Purchases of additional Investor A or Investor P Shares of the Fund concurrently with withdrawals","page_number":167,"box":{"x":69,"y":823,"width":817,"height":11}},{"id":"67f9f681-ba71-4a3a-b5b0-f259fb88418b","block_type":"box","text":"may be disadvantageous to investors because of the sales charges involved and, therefore, are discouraged. No","page_number":167,"box":{"x":69,"y":838,"width":803,"height":12}},{"id":"35c8c8d7-1f1e-4926-9349-3bdbe6343ec5","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":167,"box":{"x":69,"y":853,"width":820,"height":12}},{"id":"0c21531e-4178-4ae1-accd-7fc290f1c4a2","block_type":"box","text":"original investment on an annualized basis. For example, monthly, quar terly and semi-annual SWP redemptions of","page_number":167,"box":{"x":69,"y":869,"width":810,"height":11}},{"id":"e10caf0f-7c69-4aca-8e64-0bce25b43be0","block_type":"box","text":"II-121","page_number":167,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"2db2de9c-ca46-4391-ad1f-1a3f88247f26","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":167,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f46da865-89e0-4fd9-a844-756132ba20ab","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":168,"box":{"x":70,"y":45,"width":816,"height":11}},{"id":"3dd0b7bb-ce64-4b5b-90c8-7cdd185f9933","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":168,"box":{"x":69,"y":60,"width":840,"height":11}},{"id":"2c408eab-a06e-42e3-9da0-bbebcd757fff","block_type":"box","text":"of this limit are still subject to the applicable CDSC.","page_number":168,"box":{"x":69,"y":75,"width":367,"height":11}},{"id":"7c3993dd-6e52-41ce-bb39-157343a8169d","block_type":"box","text":"For this reason, a shareholder may not par ticipate in the Automatic Investment Plan described above (see “How","page_number":168,"box":{"x":102,"y":98,"width":798,"height":11}},{"id":"24dfceb2-280c-4b11-9f20-66c99d47c99f","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":168,"box":{"x":68,"y":113,"width":834,"height":11}},{"id":"ccb5f2bc-d557-4678-bea5-a9ce14ed2b50","block_type":"box","text":"Prospectus) and the SWP at the same time.","page_number":168,"box":{"x":69,"y":128,"width":311,"height":11}},{"id":"3dbb38c1-b21e-4854-90d1-c085170d64e8","block_type":"box","text":"Dividend Allocation Plan","page_number":168,"box":{"x":69,"y":158,"width":176,"height":9}},{"id":"6e711a14-b886-472d-af0c-6bdd17920752","block_type":"box","text":"The Dividend Allocation Plan, as applicable, allows shareholders to elect to have all their dividends and any other","page_number":168,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"9b036d42-3d51-40a2-bcb3-00ca4a3a0426","block_type":"box","text":"distributions from any Eligible Fund (which means funds so designated by the Distributor from time to time)","page_number":168,"box":{"x":69,"y":196,"width":763,"height":11}},{"id":"7fac2e45-43c6-45d6-869b-7c9d997d95b9","block_type":"box","text":"automatically invested at NAV in one other such Eligible Fund designated by the shareholder, provided the account","page_number":168,"box":{"x":69,"y":211,"width":814,"height":11}},{"id":"99c8a12f-c09b-4cab-8931-bb9f6e9d6b46","block_type":"box","text":"into which the dividends and distributions are directed is initially funded with the requisite minimum amount.","page_number":168,"box":{"x":70,"y":226,"width":771,"height":11}},{"id":"cbd7cad2-5a63-4cf3-95d1-c4d91e115931","block_type":"box","text":"PRICING OF SHARES","page_number":168,"box":{"x":406,"y":256,"width":167,"height":9}},{"id":"c91dc55d-646a-47a5-acd1-a826bdda8369","block_type":"box","text":"Determination of Net Asset Value","page_number":168,"box":{"x":69,"y":286,"width":243,"height":9}},{"id":"ca8cb8b0-a4e0-460c-a71c-16a368c7390f","block_type":"box","text":"Valuation of Shares.","page_number":168,"box":{"x":101,"y":309,"width":145,"height":9}},{"id":"69574d71-7ca6-4234-bbf1-7a5397c22c45","block_type":"box","text":"The NAV for each class of shares of each Fund is generally calculated as of the close of","page_number":168,"box":{"x":252,"y":309,"width":626,"height":11}},{"id":"63d3523e-7c60-4ad8-8196-b74e4371fe4b","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":168,"box":{"x":69,"y":324,"width":785,"height":11}},{"id":"b3d92f0f-8834-48db-a100-a1a111e7cef6","block_type":"box","text":"Valuation of assets held by a Fund is as follows:","page_number":168,"box":{"x":68,"y":339,"width":343,"height":11}},{"id":"842df90f-0ecd-48b0-b215-14b56f71d73c","block_type":"box","text":"Equity Investments.","page_number":168,"box":{"x":102,"y":362,"width":143,"height":11}},{"id":"a72751e9-f03f-44c9-8deb-23780f41a1fc","block_type":"box","text":"Equity securities traded on a recognized securities exchange (","page_number":168,"box":{"x":252,"y":362,"width":439,"height":11}},{"id":"70338bc0-77b5-49fc-a687-54433962f865","block_type":"box","text":"e.g.","page_number":168,"box":{"x":693,"y":363,"width":25,"height":10}},{"id":"99b43aa2-8cef-47f5-aaf5-6652bd6aa649","block_type":"box","text":", NYSE), on separate","page_number":168,"box":{"x":720,"y":362,"width":147,"height":11}},{"id":"8e8fcb4e-82cc-4aa0-ad79-6658740fdd61","block_type":"box","text":"trading boards of a securities exchange or through a market system that provides contemporaneous transaction","page_number":168,"box":{"x":68,"y":377,"width":799,"height":11}},{"id":"b5d409ac-5b82-4127-ac59-c0ccaaaac2e9","block_type":"box","text":"pricing information (each, an “Exchange”) are valued using information obtained via independent pricing services,","page_number":168,"box":{"x":70,"y":392,"width":808,"height":11}},{"id":"57f43e3f-32b8-475e-b596-ef1fb9006674","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":168,"box":{"x":68,"y":407,"width":820,"height":11}},{"id":"c561ecb6-913e-4082-a5f3-06bbf1a40a1d","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":168,"box":{"x":70,"y":422,"width":805,"height":11}},{"id":"250424c9-7dc3-404a-939e-0a88115076ec","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":168,"box":{"x":69,"y":437,"width":793,"height":11}},{"id":"ba546ed7-222b-4952-844b-cfe5fd64c898","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":168,"box":{"x":70,"y":452,"width":836,"height":11}},{"id":"f9eefd77-d495-46f8-9bc8-892283efacbc","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":168,"box":{"x":68,"y":468,"width":815,"height":11}},{"id":"b6ac2dae-7f21-421a-8394-60c10fc786e2","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":168,"box":{"x":70,"y":482,"width":837,"height":12}},{"id":"dd0ea916-3734-4413-9b10-8ee507f3275a","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":168,"box":{"x":69,"y":498,"width":832,"height":11}},{"id":"d42e07fe-cb94-4e8a-9393-83f177811d05","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":168,"box":{"x":68,"y":513,"width":828,"height":11}},{"id":"3e6736b2-34a8-4f6c-9406-516b7d016c2a","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":168,"box":{"x":68,"y":528,"width":819,"height":11}},{"id":"486fe06d-935f-46a7-bdf4-8e2bd49825f9","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":168,"box":{"x":70,"y":543,"width":798,"height":11}},{"id":"0d4e89a6-eb9e-4cc8-8cb5-de5c58de779e","block_type":"box","text":"defined below).","page_number":168,"box":{"x":69,"y":558,"width":106,"height":11}},{"id":"f2bcc6ca-5980-4395-b02f-9dbe8d5f87ef","block_type":"box","text":"Fixed-Income Investments.","page_number":168,"box":{"x":102,"y":581,"width":194,"height":9}},{"id":"e09e5077-9be0-4bec-a571-50810e8374dc","block_type":"box","text":"Fixed-income securities are generally valued using prices provided by dealers or","page_number":168,"box":{"x":304,"y":581,"width":565,"height":11}},{"id":"6e83556e-8330-4550-a8ff-7901f39ed892","block_type":"box","text":"prices (including evaluated prices) supplied by the Fund’s approved independent third-par ty pricing services, each in","page_number":168,"box":{"x":70,"y":596,"width":825,"height":11}},{"id":"0eb8d14b-54b4-44e4-b2fb-85d58ec1f906","block_type":"box","text":"accordance with the Valuation Procedures. The pricing services may use valuation models that utilize cer tain inputs","page_number":168,"box":{"x":69,"y":611,"width":823,"height":11}},{"id":"eda9a554-3386-407c-80ad-8950c712d259","block_type":"box","text":"and assumptions to derive values, including transaction data (","page_number":168,"box":{"x":69,"y":626,"width":443,"height":11}},{"id":"622892e8-6771-4d1e-91f9-c3fd09d080c0","block_type":"box","text":"e.g.","page_number":168,"box":{"x":514,"y":628,"width":24,"height":9}},{"id":"5530ef64-3840-44e4-b351-79b382b2d667","block_type":"box","text":", recent representative bids and offers), credit","page_number":168,"box":{"x":541,"y":626,"width":328,"height":11}},{"id":"493a9217-9038-4629-8f1c-760e01e3ca13","block_type":"box","text":"quality information, perceived market movements, news, and other relevant information and by other methods, which","page_number":168,"box":{"x":69,"y":641,"width":834,"height":11}},{"id":"0e20ad4e-0ce5-4539-8d98-33c00674aa7c","block_type":"box","text":"may include consideration of: yields or prices of securities of comparable quality, coupon, maturity and type;","page_number":168,"box":{"x":69,"y":656,"width":769,"height":11}},{"id":"f33b79f6-716a-4d86-b0c2-d806e8a08cc6","block_type":"box","text":"indications as to values from dealers; general market conditions; and/or other factors and assumptions. Pricing","page_number":168,"box":{"x":70,"y":671,"width":797,"height":12}},{"id":"830404eb-ee39-4706-826a-5543e6c37edf","block_type":"box","text":"services generally value fixed-income securities assuming orderly transactions of an institutional round lot size, but","page_number":168,"box":{"x":69,"y":686,"width":821,"height":12}},{"id":"d4d20e6d-cfff-4cbc-94e5-be8983aad62a","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":168,"box":{"x":68,"y":702,"width":798,"height":11}},{"id":"6afbeebf-7e3f-48f5-a3c5-1be5ae17be0d","block_type":"box","text":"classes may trade at lower prices than institutional round lots, and the value ultimately realized when the securities","page_number":168,"box":{"x":69,"y":717,"width":825,"height":11}},{"id":"352f0192-b2f3-4b2b-ae2f-7b0ae7f9efa4","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":168,"box":{"x":69,"y":732,"width":791,"height":11}},{"id":"fbb8a76a-04d1-49b8-91bd-f49d85c14f5a","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":168,"box":{"x":69,"y":747,"width":814,"height":11}},{"id":"084d7889-6ab9-4b89-9c1b-d0d40a04f177","block_type":"box","text":"value. Cer tain fixed-income investments, including asset-backed and mor tgage related securities, may be valued","page_number":168,"box":{"x":68,"y":762,"width":802,"height":11}},{"id":"fc28c5cf-f8f8-441a-ab02-9c050ed27ba9","block_type":"box","text":"based on valuation models that consider the estimated cash flows of each tranche of the issuer, establish a","page_number":168,"box":{"x":69,"y":777,"width":773,"height":11}},{"id":"315ae7c5-1a3e-4f23-8b7b-df4eb25fc904","block_type":"box","text":"benchmark yield and develop an estimated tranche specific spread to the benchmark yield based on the unique","page_number":168,"box":{"x":69,"y":792,"width":795,"height":12}},{"id":"2d1cf00b-0959-4842-843e-96dd24f09806","block_type":"box","text":"attributes of the tranche.","page_number":168,"box":{"x":69,"y":807,"width":176,"height":9}},{"id":"124e629f-6300-4830-9d70-2fb878c755d9","block_type":"box","text":"Options, Futures, Swaps and Other Derivatives.","page_number":168,"box":{"x":101,"y":830,"width":344,"height":11}},{"id":"0f2c3167-ee98-425d-a791-aa14d3f1d25c","block_type":"box","text":"Exchange-traded equity options (except ETF options, equity","page_number":168,"box":{"x":453,"y":830,"width":416,"height":11}},{"id":"92c38fd3-7794-4f97-8803-ef764e419a8b","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":168,"box":{"x":70,"y":845,"width":829,"height":11}},{"id":"69e293e3-43a2-488a-8e6e-c3b6c35f7ec8","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":168,"box":{"x":69,"y":860,"width":824,"height":12}},{"id":"9921df5b-ae11-404c-a78e-6e39859cf768","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":168,"box":{"x":68,"y":875,"width":838,"height":12}},{"id":"6d9a3abd-957c-4545-a46b-7eccd8b3ce14","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":168,"box":{"x":68,"y":891,"width":820,"height":11}},{"id":"ba804232-e3bb-4b74-9cd0-73ce145a981b","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":168,"box":{"x":68,"y":906,"width":808,"height":11}},{"id":"820fd542-3ad5-4d41-a62d-718d46aba114","block_type":"box","text":"II-122","page_number":168,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"fb4e49ab-e21a-475d-b11f-a6d5cbeb3a48","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":168,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"023155cd-6b13-4236-b135-790e12ec3612","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":169,"box":{"x":69,"y":45,"width":824,"height":11}},{"id":"fae0725b-1e33-4f56-9a25-2829bbabb6be","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":169,"box":{"x":68,"y":60,"width":789,"height":11}},{"id":"1a076d55-5496-4b47-b331-94e1f47f73fe","block_type":"box","text":"options, ETF options, equity index options and OTC derivatives, may be valued using a mathematical model which","page_number":169,"box":{"x":69,"y":75,"width":807,"height":11}},{"id":"41c17fcb-ccc2-4599-b85b-ab3a26bbb35c","block_type":"box","text":"may incorporate a number of market data factors. Financial futures contracts and options thereon, which are traded","page_number":169,"box":{"x":69,"y":90,"width":824,"height":11}},{"id":"2c2832ee-a5ee-4131-b113-cf20dce1d3d5","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":169,"box":{"x":69,"y":105,"width":833,"height":11}},{"id":"4e7e2521-7834-488e-b486-e7b5b1b2586a","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":169,"box":{"x":69,"y":120,"width":830,"height":12}},{"id":"12856243-d398-4a08-8439-e5d78ea13186","block_type":"box","text":"accordance with the Valuation Procedures.","page_number":169,"box":{"x":69,"y":136,"width":301,"height":8}},{"id":"1bebf9c6-fc69-46e8-821d-1e9fe59e2457","block_type":"box","text":"Underlying Funds.","page_number":169,"box":{"x":102,"y":158,"width":128,"height":11}},{"id":"7737543e-93c0-4dce-bf12-0411aa040eae","block_type":"box","text":"Shares of underlying open-end funds that are not traded on an exchange (including money","page_number":169,"box":{"x":237,"y":158,"width":640,"height":11}},{"id":"57022d09-6f90-480a-b29a-3dc63bc797e0","block_type":"box","text":"market funds) are valued at NAV. Shares of underlying exchange-traded closed-end funds or other ETFs will be valued","page_number":169,"box":{"x":69,"y":173,"width":830,"height":11}},{"id":"961bbda5-beba-42dd-86b1-72dfe4275457","block_type":"box","text":"at their most recent closing price.","page_number":169,"box":{"x":69,"y":188,"width":238,"height":12}},{"id":"5f0ac676-7cfe-4fe0-8e2b-a6e2d352bba5","block_type":"box","text":"General Valuation Information.","page_number":169,"box":{"x":101,"y":211,"width":220,"height":9}},{"id":"48ec86a4-3c16-4762-bc92-1b91c9d2d9c3","block_type":"box","text":"Prices obtained from independent third-par ty pricing services, broker-dealers or","page_number":169,"box":{"x":328,"y":211,"width":564,"height":11}},{"id":"2e9dfdd3-5da6-4523-bf20-8e97e4258d8d","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":169,"box":{"x":69,"y":226,"width":831,"height":9}},{"id":"77b224d1-7222-46cd-8184-a97129e6a597","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":169,"box":{"x":68,"y":241,"width":828,"height":11}},{"id":"04a28fcd-725e-49cf-98bc-a5e6daa0762e","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":169,"box":{"x":69,"y":257,"width":829,"height":11}},{"id":"337495dc-ded7-4fa2-9cd2-da1357db3137","block_type":"box","text":"applied prospectively. Such determination will be made considering per tinent facts and circumstances surrounding","page_number":169,"box":{"x":69,"y":271,"width":817,"height":12}},{"id":"cae10393-d180-46fc-875a-126ae6c85dc3","block_type":"box","text":"the revision.","page_number":169,"box":{"x":68,"y":287,"width":87,"height":9}},{"id":"e261dbf4-f30c-41d8-bbea-1b0fdaa1a955","block_type":"box","text":"In determining the market value of por tfolio investments, the Fund may employ independent third-par ty pricing","page_number":169,"box":{"x":102,"y":309,"width":784,"height":11}},{"id":"826e4429-5a68-437c-b520-c85d803174d9","block_type":"box","text":"services, which may use, without limitation, evaluated pricing methods that take into consideration market indexes,","page_number":169,"box":{"x":69,"y":325,"width":823,"height":11}},{"id":"b47d2afb-0043-41f6-beac-c3ca0456fe75","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":169,"box":{"x":69,"y":339,"width":818,"height":12}},{"id":"d76096d8-585c-4a67-ab8e-175e960b2fcf","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":169,"box":{"x":70,"y":355,"width":832,"height":11}},{"id":"b3862a3d-3bd7-4210-b67e-8371ddb5efae","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":169,"box":{"x":70,"y":370,"width":832,"height":11}},{"id":"ca03b9bb-2477-4832-8642-a2ba3051fea3","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":169,"box":{"x":69,"y":385,"width":834,"height":11}},{"id":"00d0d34b-1d1e-44af-b38c-a8fd730b52f5","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":169,"box":{"x":69,"y":400,"width":837,"height":11}},{"id":"621aff97-e595-42c4-9148-47c9be2d4e27","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":169,"box":{"x":70,"y":415,"width":833,"height":11}},{"id":"5a25af6f-0296-4e49-bbe2-cc3918e98432","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":169,"box":{"x":69,"y":430,"width":827,"height":11}},{"id":"fa083b1d-93dd-4023-984d-d2e5074fd719","block_type":"box","text":"impacted by technological issues and/or errors by pricing services or other third-par ty service providers.","page_number":169,"box":{"x":70,"y":446,"width":741,"height":11}},{"id":"14d0bb6a-d322-4edb-9f7d-e20295fe1f60","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":169,"box":{"x":102,"y":468,"width":800,"height":11}},{"id":"d3c8808f-d251-4843-b16c-2ef3e853ac97","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":169,"box":{"x":69,"y":483,"width":811,"height":11}},{"id":"d0f9b6f0-d174-4097-a785-b4da8339b531","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":169,"box":{"x":69,"y":498,"width":827,"height":11}},{"id":"6a04aa4e-fa3c-4016-8e6b-50997fbdf558","block_type":"box","text":"value. All other assets and liabilities (including securities for which market quotations are not readily available) held","page_number":169,"box":{"x":68,"y":513,"width":824,"height":12}},{"id":"5ef89bc0-a477-46d8-816e-6308e1f32118","block_type":"box","text":"by a Fund (including restricted securities and private market investments, as applicable) are valued at fair value as","page_number":169,"box":{"x":69,"y":528,"width":817,"height":12}},{"id":"72cb0e72-10db-4a7d-bf45-815cd4bfcb6f","block_type":"box","text":"determined in good faith by BlackRock pursuant to the Valuation Procedures. Any assets and liabilities which are","page_number":169,"box":{"x":69,"y":543,"width":802,"height":12}},{"id":"07f1efaa-ccdf-46bc-8bbe-7fa2f0005e07","block_type":"box","text":"denominated in a foreign currency are translated into U.S. dollars at the prevailing market rates.","page_number":169,"box":{"x":69,"y":559,"width":685,"height":11}},{"id":"9024321b-2e4b-4282-9e98-7db646b0fd4e","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":169,"box":{"x":102,"y":581,"width":795,"height":12}},{"id":"29ab6d78-f5aa-4440-b674-424ec250a7c3","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":169,"box":{"x":68,"y":596,"width":805,"height":12}},{"id":"a255a10d-92d1-4e5b-9867-014ba63b8bfa","block_type":"box","text":"days when investors can neither purchase nor redeem shares of the Fund.","page_number":169,"box":{"x":69,"y":612,"width":529,"height":11}},{"id":"e41ced77-1bb7-4ce6-8a8a-7eb44ccc00b1","block_type":"box","text":"Fair Value.","page_number":169,"box":{"x":102,"y":634,"width":74,"height":9}},{"id":"730b6de5-f2a8-40f2-bc39-cd6a520b35be","block_type":"box","text":"When market quotations are not readily available or are believed by BlackRock to be unreliable, a","page_number":169,"box":{"x":183,"y":634,"width":693,"height":11}},{"id":"2ae2ffbe-37c4-4c0d-bcbb-bd10e9b86ccb","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":169,"box":{"x":70,"y":649,"width":785,"height":12}},{"id":"be2d2839-1571-4dea-aaa1-cd164b4d9d5a","block_type":"box","text":"accordance with the Valuation Procedures. Pursuant to Rule 2a-5 under the Investment Company Act, the Board of","page_number":169,"box":{"x":69,"y":664,"width":816,"height":12}},{"id":"7339fef5-a837-4eee-85a3-8ce0a56ca69c","block_type":"box","text":"Directors has designated BlackRock as the valuation designee for the respective Funds for which it serves as","page_number":169,"box":{"x":70,"y":680,"width":779,"height":11}},{"id":"d6be2a55-7a3b-4dbf-ab31-598a1309e5c1","block_type":"box","text":"investment adviser. BlackRock may reasonably conclude that a market quotation is not readily available or is","page_number":169,"box":{"x":70,"y":695,"width":773,"height":11}},{"id":"504c652f-e422-499b-a739-6c97611c8b28","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":169,"box":{"x":69,"y":710,"width":772,"height":11}},{"id":"7f113af6-da7e-4065-bf0f-8d54cd27c9da","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":169,"box":{"x":69,"y":725,"width":826,"height":11}},{"id":"e6736876-c6a5-4b64-a9ef-c19299c3e30d","block_type":"box","text":"(","page_number":169,"box":{"x":69,"y":740,"width":3,"height":11}},{"id":"af06cb7e-14ca-4c02-a45b-e3b99ad0e4ba","block_type":"box","text":"e.g.","page_number":169,"box":{"x":74,"y":742,"width":25,"height":9}},{"id":"d071e1c4-96e9-4dc1-8d40-f54235e36ca8","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":169,"box":{"x":101,"y":740,"width":806,"height":11}},{"id":"26301263-4990-4513-bc5b-0c473027f1a1","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":169,"box":{"x":69,"y":755,"width":813,"height":11}},{"id":"9696a384-a51f-4d53-b004-5a57dccd2970","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":169,"box":{"x":68,"y":770,"width":837,"height":12}},{"id":"b2739ada-c67e-467d-af91-d49eeceadb9e","block_type":"box","text":"purpose, a “significant event” is deemed to occur if BlackRock determines, in its reasonable business judgment, that","page_number":169,"box":{"x":70,"y":785,"width":838,"height":12}},{"id":"424a1fed-011c-43fe-b9e8-ede6b6a6ade4","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":169,"box":{"x":69,"y":801,"width":824,"height":11}},{"id":"4962bf97-a89e-482f-ab7a-5fa3df78ee47","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":169,"box":{"x":69,"y":816,"width":828,"height":11}},{"id":"da7ef697-ef8a-4eae-805f-edf8d50ff4df","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":169,"box":{"x":69,"y":831,"width":793,"height":11}},{"id":"12535eea-a7ea-4582-8891-ea16c954b3f5","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":169,"box":{"x":70,"y":846,"width":819,"height":11}},{"id":"cb8667a2-a7bd-4b35-a23d-4cf62e2ebaf3","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":169,"box":{"x":68,"y":861,"width":810,"height":11}},{"id":"f7a88654-af3f-4591-a846-a591664e76fb","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":169,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"9b10f6f9-4616-4152-95a6-e482cff9f6c4","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":169,"box":{"x":69,"y":891,"width":822,"height":12}},{"id":"8cf3266d-f60e-4805-877c-6db1223011eb","block_type":"box","text":"value pricing based upon the movement of a proprietary multi-factor model after the relevant foreign markets have","page_number":169,"box":{"x":68,"y":906,"width":814,"height":12}},{"id":"c316f730-071a-4c56-ada2-cb03ef341d25","block_type":"box","text":"II-123","page_number":169,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"7c293ece-2c31-4d11-bc7e-4d6e3318d46f","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":169,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7f3c3049-de40-4edc-b918-19f996615aff","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":170,"box":{"x":69,"y":45,"width":827,"height":11}},{"id":"5374fa61-0e72-4857-b54b-bb3fbcbf8d02","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":170,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"287de893-9a7a-48b7-8be7-394ce45d14df","block_type":"box","text":"pricing time.","page_number":170,"box":{"x":70,"y":75,"width":85,"height":11}},{"id":"cd6f6555-5b21-45e1-9448-409767ec0f91","block_type":"box","text":"BlackRock’s Rule 2a-5 Committee is responsible for reviewing and approving methodologies by investment type","page_number":170,"box":{"x":102,"y":98,"width":794,"height":11}},{"id":"96afb324-25ff-480c-95cf-182b53859bff","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":170,"box":{"x":69,"y":113,"width":829,"height":11}},{"id":"83950cbd-b6ea-4dca-81e3-ec4ae9f99064","block_type":"box","text":"assists BlackRock by periodically endeavoring to confirm the prices it receives from all third-par ty pricing services,","page_number":170,"box":{"x":69,"y":128,"width":813,"height":11}},{"id":"a2ba6308-d7ad-4e48-afee-5d46af47f32e","block_type":"box","text":"index providers and broker-dealers. BlackRock regularly evaluates the values assigned to the securities and other","page_number":170,"box":{"x":70,"y":143,"width":808,"height":11}},{"id":"b8c46804-4325-476c-a844-d9c3dd5f3ea6","block_type":"box","text":"assets and liabilities of the Funds.","page_number":170,"box":{"x":69,"y":158,"width":245,"height":9}},{"id":"c1e8779a-e257-4b18-83ed-41a6c85bd092","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":170,"box":{"x":101,"y":181,"width":795,"height":11}},{"id":"8933e244-4d3e-45e2-bd9c-2da4e5bd15cd","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":170,"box":{"x":69,"y":196,"width":832,"height":11}},{"id":"1b2ee1af-ec45-4462-ad96-ba4d970071d7","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":170,"box":{"x":69,"y":211,"width":805,"height":11}},{"id":"8838c76f-e89e-44ce-9672-1ad766c7fb54","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":170,"box":{"x":69,"y":226,"width":834,"height":11}},{"id":"9e3a0ffa-1999-44fb-8d40-62ad1332ee7b","block_type":"box","text":"determinations will be based upon all available factors that BlackRock deems relevant at the time of the","page_number":170,"box":{"x":69,"y":241,"width":744,"height":11}},{"id":"6508da19-5d29-4aa3-a600-804d757c3d37","block_type":"box","text":"determination, and may be based on analytical values determined by BlackRock using proprietary or third-par ty","page_number":170,"box":{"x":69,"y":257,"width":791,"height":11}},{"id":"9d312e33-5ac9-4686-bae0-e03f7b75e000","block_type":"box","text":"valuation models.","page_number":170,"box":{"x":68,"y":272,"width":125,"height":8}},{"id":"8583f676-01f6-4b3c-9f7e-06e566016f38","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":170,"box":{"x":102,"y":294,"width":785,"height":11}},{"id":"d7f60723-b1c1-41e4-8adc-9d74c55b042c","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":170,"box":{"x":68,"y":309,"width":822,"height":11}},{"id":"f7b971a0-ef4d-4bb5-b985-01bca7f7e687","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":170,"box":{"x":68,"y":324,"width":820,"height":12}},{"id":"b3cc7196-aa74-4858-a5ed-134863a85bc2","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":170,"box":{"x":69,"y":339,"width":818,"height":12}},{"id":"fe3cb921-3610-41b1-b0ea-541a0f28259d","block_type":"box","text":"actual, executed or historical transactions in the relevant investment (or comparable instruments) or, where","page_number":170,"box":{"x":69,"y":355,"width":766,"height":11}},{"id":"061e8d40-ebcf-4fc7-830b-9ce1828eac06","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":170,"box":{"x":69,"y":370,"width":828,"height":11}},{"id":"505436bb-3f51-4a15-9e0a-bfababc9b54a","block_type":"box","text":"basis for establishing the fair value of an investment.","page_number":170,"box":{"x":69,"y":385,"width":378,"height":11}},{"id":"b71758e8-11d5-4a73-93b2-7e15693bde6c","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":170,"box":{"x":101,"y":407,"width":784,"height":12}},{"id":"90dfa5da-a2a3-4393-99af-e061b20ed9bb","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":170,"box":{"x":70,"y":423,"width":836,"height":11}},{"id":"f297a13a-bd11-45b1-bb67-ed98dd03d733","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":170,"box":{"x":70,"y":438,"width":834,"height":11}},{"id":"79886a77-d91e-4a5f-88e0-e0dd4a82e41b","block_type":"box","text":"fair value, may have the effect of diluting or increasing the economic interest of existing shareholders.","page_number":170,"box":{"x":68,"y":453,"width":728,"height":11}},{"id":"98a13901-9764-47a5-bf1c-39eba0197112","block_type":"box","text":"Each Fund’s annual audited financial statements, which are prepared in accordance with accounting principles","page_number":170,"box":{"x":102,"y":475,"width":786,"height":12}},{"id":"b6001d68-b1ae-4dab-876b-7e07f7af894a","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":170,"box":{"x":68,"y":491,"width":809,"height":11}},{"id":"b4a320de-3c64-4508-8d27-8e21dd97136d","block_type":"box","text":"Financial Accounting Standards Board Accounting Standards Codification Topic 820, “Fair Value Measurements and","page_number":170,"box":{"x":70,"y":506,"width":821,"height":11}},{"id":"d28b1989-f65f-44bc-a6de-9bd594aafdce","block_type":"box","text":"Disclosures” (“ASC 820”), which defines and establishes a framework for measuring fair value under US GAAP and","page_number":170,"box":{"x":70,"y":521,"width":818,"height":11}},{"id":"2bb4721c-2253-4131-8e2d-25e75df5a4ee","block_type":"box","text":"expands financial statement disclosure requirements relating to fair value measurements.","page_number":170,"box":{"x":69,"y":536,"width":641,"height":11}},{"id":"462a80b9-25ad-4a1a-9813-f6ac627f4468","block_type":"box","text":"Generally, ASC 820 and other accounting rules applicable to funds and various assets in which they invest are","page_number":170,"box":{"x":102,"y":559,"width":786,"height":11}},{"id":"62ece607-daf7-41e4-9b1f-b9e69b51771a","block_type":"box","text":"evolving. Such changes may adversely affect a Fund. For example, the evolution of rules governing the determination","page_number":170,"box":{"x":69,"y":574,"width":832,"height":11}},{"id":"6da0ed02-e035-4873-9e2d-4fc9d15268b2","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":170,"box":{"x":69,"y":589,"width":780,"height":11}},{"id":"7f45b072-1949-4064-aab8-e2d3b866b7fe","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":170,"box":{"x":70,"y":604,"width":810,"height":11}},{"id":"48a64add-377a-4893-9345-ac4fcba3804c","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":170,"box":{"x":70,"y":619,"width":810,"height":11}},{"id":"56af5f10-2738-44f9-84cd-3514e657ee45","block_type":"box","text":"par ty determination of fair market value.","page_number":170,"box":{"x":70,"y":634,"width":285,"height":11}},{"id":"8a2c2f67-0b03-4076-ab00-55ca44c034cc","block_type":"box","text":"Computation of Offering Price Per Share","page_number":170,"box":{"x":69,"y":665,"width":292,"height":11}},{"id":"a5422392-53cd-46bb-b2c9-5a1587fcf167","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":170,"box":{"x":102,"y":687,"width":791,"height":11}},{"id":"79eb0a1c-c5ec-4c71-8db7-67cf77ea5bc3","block_type":"box","text":"the offering price for shares of your Fund.","page_number":170,"box":{"x":68,"y":702,"width":295,"height":12}},{"id":"ff164658-660f-4fd0-8e6c-f8f82f8e3b23","block_type":"box","text":"PORTFOLIO TRANSACTIONS AND BROKERAGE","page_number":170,"box":{"x":303,"y":732,"width":373,"height":10}},{"id":"cbcbd9f5-2647-4cbf-bff9-ccf5110865db","block_type":"box","text":"Transactions in Portfolio Securities","page_number":170,"box":{"x":68,"y":762,"width":257,"height":9}},{"id":"aeb14221-450e-4b12-a132-56dfde601d1d","block_type":"box","text":"Subject to policies established by the Board of Directors, BlackRock is primarily responsible for the execution of","page_number":170,"box":{"x":102,"y":785,"width":798,"height":11}},{"id":"1f7347d4-b39e-4b85-93fb-24acaa4dab4e","block_type":"box","text":"a Fund’s por tfolio transactions and the allocation of brokerage. BlackRock does not execute transactions through any","page_number":170,"box":{"x":69,"y":800,"width":839,"height":11}},{"id":"e00b1fd8-faec-4ebc-9c92-2c739b792bd5","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":170,"box":{"x":70,"y":815,"width":822,"height":11}},{"id":"f6f803ed-f5cc-4b13-9231-2cc06ff8a10e","block_type":"box","text":"set out below. While BlackRock generally seeks reasonable trade execution costs, a Fund does not necessarily pay","page_number":170,"box":{"x":69,"y":830,"width":820,"height":11}},{"id":"36e55dcd-d7a8-4957-8730-9b35ed0bc27a","block_type":"box","text":"the lowest spread or commission available, and payment of the lowest commission or spread is not necessarily","page_number":170,"box":{"x":68,"y":845,"width":798,"height":11}},{"id":"a221666b-acba-4300-9385-b6cee604c6ee","block_type":"box","text":"consistent with obtaining the best price and execution in par ticular transactions. Subject to applicable legal","page_number":170,"box":{"x":69,"y":860,"width":765,"height":12}},{"id":"ae7a2207-82eb-41e3-b1bd-9cfb91166dde","block_type":"box","text":"requirements, BlackRock may select a broker based par tly upon brokerage or research services provided to","page_number":170,"box":{"x":69,"y":876,"width":768,"height":11}},{"id":"f10051d7-16eb-4c0a-8277-05cf86e3964e","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":170,"box":{"x":70,"y":891,"width":830,"height":11}},{"id":"383e5c8f-84da-4bf7-81cd-d3d40caf19a5","block_type":"box","text":"II-124","page_number":170,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"7551c1ae-3e4b-4b30-9190-1214c22b6db4","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":170,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"86d1a5c4-6523-487c-9bee-30920296ee8d","block_type":"box","text":"commission than other brokers would charge if BlackRock determines in good faith that the commission is","page_number":171,"box":{"x":69,"y":45,"width":760,"height":11}},{"id":"c37664a1-f266-4fbf-ac99-c97ab0442164","block_type":"box","text":"reasonable in relation to the services provided.","page_number":171,"box":{"x":69,"y":60,"width":336,"height":11}},{"id":"13177590-b55f-46d5-ba1b-7205dbf06765","block_type":"box","text":"In the case of Feeder Funds, because each Feeder Fund generally invests exclusively in beneficial interests of a","page_number":171,"box":{"x":102,"y":82,"width":794,"height":12}},{"id":"cfb9535b-ea7f-48e7-bc5e-d0f203fbd571","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":171,"box":{"x":70,"y":98,"width":835,"height":11}},{"id":"ea46fa8b-d840-49e1-9e91-882f1b947d1b","block_type":"box","text":"In selecting brokers or dealers to execute por tfolio transactions, the Manager and sub-advisers seek to obtain","page_number":171,"box":{"x":102,"y":120,"width":784,"height":12}},{"id":"2e040a3d-748a-4b37-8271-8714554350c1","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":171,"box":{"x":68,"y":135,"width":829,"height":12}},{"id":"db0b9734-4760-4e2d-8d08-dbeef645d9c3","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":171,"box":{"x":69,"y":150,"width":802,"height":12}},{"id":"3de23952-f371-4354-96aa-3451ba74a84c","block_type":"box","text":"(ii) the desired timing of the transaction; (iii) BlackRock’s knowledge of the expected commission rates and spreads","page_number":171,"box":{"x":69,"y":166,"width":826,"height":11}},{"id":"0db72001-bfdf-4b1c-b2b5-ba6def542848","block_type":"box","text":"currently available; (iv) the activity existing and expected in the market for the par ticular security or instrument,","page_number":171,"box":{"x":69,"y":181,"width":789,"height":11}},{"id":"81c89b9f-48a0-4dc1-86ad-ab5b9a817a86","block_type":"box","text":"including any anticipated execution difficulties; (v) the full range of brokerage services provided; (vi) the broker’s or","page_number":171,"box":{"x":70,"y":196,"width":818,"height":11}},{"id":"42c3062e-f982-497c-8c60-4ae3cbf375c5","block_type":"box","text":"dealer’s capital; (vii) the quality of research and research services provided; (viii) the reasonableness of the","page_number":171,"box":{"x":69,"y":211,"width":769,"height":11}},{"id":"b468e33d-e183-4135-8e5a-0dd1f97a0b88","block_type":"box","text":"commission, dealer spread or its equivalent for the specific transaction; and (ix) BlackRock’s knowledge of any actual","page_number":171,"box":{"x":69,"y":226,"width":837,"height":11}},{"id":"f264a3de-b65e-46a8-b145-cdae783770b2","block_type":"box","text":"or apparent operational problems of a broker or dealer.","page_number":171,"box":{"x":69,"y":241,"width":391,"height":11}},{"id":"b35f6dfb-8dbe-4168-b335-93b6e39ff84b","block_type":"box","text":"Section 28(e) of the Exchange Act (“Section 28(e)”) permits an investment adviser, under cer tain circumstances","page_number":171,"box":{"x":102,"y":264,"width":801,"height":11}},{"id":"42e626da-9f23-4553-a201-d55f09a8d081","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":171,"box":{"x":68,"y":279,"width":802,"height":11}},{"id":"6d6cb83a-6316-485a-b34c-4626a65584ca","block_type":"box","text":"another broker or dealer would have charged for effecting the same transaction in recognition of the value of","page_number":171,"box":{"x":69,"y":294,"width":775,"height":11}},{"id":"26a71bcf-bfa8-4c51-8de8-c4721139f412","block_type":"box","text":"brokerage and research services provided by that broker or dealer. This includes commissions paid on riskless","page_number":171,"box":{"x":69,"y":309,"width":790,"height":11}},{"id":"9539f9c4-af5a-4378-a9fd-9c3b431db8e6","block_type":"box","text":"principal transactions under cer tain conditions. Brokerage and research services include: (1) furnishing advice as to","page_number":171,"box":{"x":70,"y":324,"width":827,"height":12}},{"id":"be455048-dccb-4a40-a278-567ee1e82cf4","block_type":"box","text":"the value of securities, including pricing and appraisal advice, credit analysis, risk measurement analysis,","page_number":171,"box":{"x":68,"y":339,"width":753,"height":12}},{"id":"cf8acab2-f323-4f5b-b350-7ab0f05a4e91","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":171,"box":{"x":70,"y":355,"width":818,"height":11}},{"id":"57ab3284-d58d-4266-bcd4-7f3dc101e270","block_type":"box","text":"availability of securities or purchasers or sellers of securities; (2) furnishing analyses and repor ts concerning issuers,","page_number":171,"box":{"x":69,"y":370,"width":837,"height":11}},{"id":"52acb3dc-7a5c-45f1-9c7e-dab608c79259","block_type":"box","text":"industries, securities, economic factors and trends, por tfolio strategy, and the per formance of accounts; and","page_number":171,"box":{"x":70,"y":385,"width":775,"height":11}},{"id":"97dd8dd6-4982-4a78-8f49-e0774fa7c636","block_type":"box","text":"(3) effecting securities transactions and per forming functions incidental to securities transactions (such as","page_number":171,"box":{"x":69,"y":400,"width":764,"height":11}},{"id":"522d310f-7490-458a-afbd-f7f72a6f3dea","block_type":"box","text":"clearance, settlement, and custody). BlackRock believes that access to independent investment research is","page_number":171,"box":{"x":69,"y":415,"width":770,"height":11}},{"id":"1cd0a0e7-00a4-47b7-a4d0-3b9ec9e9df51","block_type":"box","text":"beneficial to its investment decision-making processes and, therefore, to the Funds.","page_number":171,"box":{"x":69,"y":430,"width":599,"height":11}},{"id":"5429ffb5-b123-412b-8da4-50a7c265a097","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may par ticipate in client commission arrangements under which","page_number":171,"box":{"x":102,"y":453,"width":796,"height":11}},{"id":"0b0cd4a7-44ea-489c-927e-2cce413acfc1","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":171,"box":{"x":70,"y":468,"width":829,"height":11}},{"id":"26538908-141c-4863-bb6d-f1616e5286c8","block_type":"box","text":"the commissions or commission credits to another firm that provides research to BlackRock. BlackRock believes that","page_number":171,"box":{"x":68,"y":483,"width":839,"height":11}},{"id":"4c014b4f-0499-43d0-a280-990eefb20b3a","block_type":"box","text":"research services obtained through soft dollar or commission sharing arrangements enhance its investment decision","page_number":171,"box":{"x":69,"y":498,"width":839,"height":11}},{"id":"464ba303-db6f-4d61-83fb-3f8debaf6282","block_type":"box","text":"making capabilities, thereby increasing the prospects for higher investment returns. BlackRock will engage only in","page_number":171,"box":{"x":69,"y":513,"width":809,"height":12}},{"id":"8b14fa1d-c9a4-4b7a-b839-594d3f7cc046","block_type":"box","text":"soft dollar or commission sharing transactions that comply with the requirements of Section 28(e). Cer tain Funds","page_number":171,"box":{"x":69,"y":528,"width":808,"height":12}},{"id":"f7b06180-7500-45c1-91a4-76d62c738563","block_type":"box","text":"may be subject to additional regulations, including MiFID II. Under MiFID II, EU investment managers, including BIL,","page_number":171,"box":{"x":69,"y":544,"width":818,"height":11}},{"id":"341b6dce-a4d3-4ea2-919b-0846e921a5ef","block_type":"box","text":"pay for any research out of their own resources and not through soft dollars or commission sharing arrangements.","page_number":171,"box":{"x":70,"y":559,"width":813,"height":11}},{"id":"a2e13927-a715-4adc-94dd-c9b42261bfae","block_type":"box","text":"BlackRock regularly evaluates the soft dollar products and services utilized, as well as the overall soft dollar and","page_number":171,"box":{"x":70,"y":574,"width":801,"height":11}},{"id":"a2533ed0-a575-475c-a466-247a48b09207","block_type":"box","text":"commission sharing arrangements to ensure that trades are executed by firms that are regarded as best able to","page_number":171,"box":{"x":69,"y":589,"width":802,"height":11}},{"id":"80aa72bc-cc54-478d-981f-c98a288738c0","block_type":"box","text":"execute trades for client accounts, while at the same time providing access to the research and other services","page_number":171,"box":{"x":69,"y":604,"width":790,"height":11}},{"id":"9ac8ae19-ca37-4bb8-af94-c581d1aa3567","block_type":"box","text":"BlackRock views as impactful to its trading results.","page_number":171,"box":{"x":70,"y":619,"width":361,"height":11}},{"id":"f2189bd0-01ac-4ed7-b89d-8a98abfa511e","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may utilize soft dollars and related services, including research","page_number":171,"box":{"x":102,"y":642,"width":791,"height":11}},{"id":"c109fae3-ca40-4445-87f6-97940b642c95","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":171,"box":{"x":69,"y":657,"width":819,"height":11}},{"id":"d0c88bd4-d275-493e-9de5-f9b6a3a425e0","block_type":"box","text":"and execution or brokerage services within applicable rules and BlackRock’s policies to the extent that such","page_number":171,"box":{"x":69,"y":672,"width":772,"height":11}},{"id":"b999b2ff-0bad-4931-894c-6f4efdc8ff95","block_type":"box","text":"permitted services do not compromise BlackRock’s ability to seek to obtain best execution. In this regard, the","page_number":171,"box":{"x":70,"y":687,"width":785,"height":11}},{"id":"c24a90cb-e3ba-4861-9dfb-760f025d2347","block_type":"box","text":"por tfolio management investment and/or trading teams may consider a variety of factors, including the degree to","page_number":171,"box":{"x":70,"y":702,"width":806,"height":12}},{"id":"53f48ffa-285e-4efa-b119-dfbe7aa5f0e9","block_type":"box","text":"which the broker-dealer: (a) provides access to company management; (b) provides access to their analysts;","page_number":171,"box":{"x":68,"y":718,"width":772,"height":11}},{"id":"3dc8aa1b-e372-47f7-af3b-ecedfc9d03e1","block_type":"box","text":"(c) provides meaningful/insightful research notes on companies or other potential investments; (d) facilitates calls on","page_number":171,"box":{"x":69,"y":732,"width":838,"height":12}},{"id":"b9eede3f-cc88-406d-a7f4-54cd3159ca1b","block_type":"box","text":"which meaningful or insightful ideas about companies or potential investments are discussed; (e) facilitates","page_number":171,"box":{"x":68,"y":748,"width":769,"height":11}},{"id":"4918feb2-0eb7-44e7-8aa6-3430b1220736","block_type":"box","text":"conferences at which meaningful or insightful ideas about companies or potential investments are discussed; or","page_number":171,"box":{"x":69,"y":763,"width":801,"height":11}},{"id":"178931ff-4c8d-44bb-9800-9962f1976294","block_type":"box","text":"(f) provides research tools such as market data, financial analysis, and other third-par ty related research and","page_number":171,"box":{"x":69,"y":778,"width":778,"height":11}},{"id":"e56b296f-f0ae-4229-9d83-ba4ffb069ced","block_type":"box","text":"brokerage tools that aid in the investment process.","page_number":171,"box":{"x":69,"y":793,"width":363,"height":11}},{"id":"075b8494-0778-4254-8ee3-2374cdaf1ed0","block_type":"box","text":"Research-oriented services for which BlackRock, unless prohibited by applicable law, might pay with Fund","page_number":171,"box":{"x":102,"y":816,"width":749,"height":11}},{"id":"e5a415ff-76c3-4006-a982-2e2a17adaa9d","block_type":"box","text":"commissions may be in written form or through direct contact with individuals and may include information as to","page_number":171,"box":{"x":69,"y":831,"width":799,"height":11}},{"id":"1c4465f2-037e-4104-9a44-03cb3fb3eefb","block_type":"box","text":"par ticular companies or industries and securities or groups of securities, as well as market, economic, or","page_number":171,"box":{"x":70,"y":846,"width":752,"height":11}},{"id":"2b697cf6-8a0b-4212-9b1e-576cbda71167","block_type":"box","text":"institutional advice and statistical information, political developments and technical market information that assists","page_number":171,"box":{"x":70,"y":861,"width":823,"height":11}},{"id":"d7e5952f-32cc-4992-88b2-60cad5f08d2e","block_type":"box","text":"in the valuation of investments. Except as noted immediately below, research services furnished by brokers may be","page_number":171,"box":{"x":70,"y":876,"width":822,"height":11}},{"id":"74629ae1-7cfd-4423-842c-d074090db83b","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":171,"box":{"x":69,"y":891,"width":840,"height":12}},{"id":"a86098ea-c283-44be-9f1e-365854d406c2","block_type":"box","text":"that paid commissions to the broker providing such services. In some cases, research information received from","page_number":171,"box":{"x":68,"y":906,"width":805,"height":12}},{"id":"68e2984a-3647-400f-91b7-16282fbe0b4c","block_type":"box","text":"II-125","page_number":171,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"f4c9e952-6fd3-4a7f-922b-8cc155f46903","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":171,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"aa3e7159-2273-4148-b5ee-d03cb7764298","block_type":"box","text":"brokers by mutual fund management personnel, or personnel principally responsible for BlackRock’s individually","page_number":172,"box":{"x":69,"y":45,"width":798,"height":11}},{"id":"4375dfd2-7024-4a8c-8cb4-f233fce1b0cb","block_type":"box","text":"managed por tfolios, is not necessarily shared by and between such personnel. Any investment advisory or other fees","page_number":172,"box":{"x":69,"y":60,"width":836,"height":11}},{"id":"05e66330-7438-4fb5-b446-f250e1cb9e6e","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":172,"box":{"x":70,"y":75,"width":832,"height":11}},{"id":"3b03e175-3542-447a-9c42-515b4e0da7b2","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":172,"box":{"x":70,"y":90,"width":798,"height":11}},{"id":"5f5d3465-fac9-40f3-a363-248017ef8508","block_type":"box","text":"occurs BlackRock makes a good faith allocation, under all the circumstances, between the research and non","page_number":172,"box":{"x":69,"y":105,"width":780,"height":11}},{"id":"336bbdb8-fd50-4a20-8204-deff53017e32","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":172,"box":{"x":69,"y":120,"width":827,"height":12}},{"id":"4100129f-e624-4740-ac47-f2247fc6550f","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":172,"box":{"x":69,"y":135,"width":821,"height":12}},{"id":"50404f31-b1c1-413c-86b0-17cc11b612cc","block_type":"box","text":"non-research purposes. In making this good faith allocation, BlackRock faces a potential conflict of interest, but","page_number":172,"box":{"x":69,"y":150,"width":797,"height":12}},{"id":"4674b7db-3805-45ed-a6ba-cde911282b38","block_type":"box","text":"BlackRock believes that its allocation procedures are reasonably designed to ensure that it appropriately allocates","page_number":172,"box":{"x":70,"y":166,"width":815,"height":11}},{"id":"58b70804-1001-415f-bba2-14b75824f86d","block_type":"box","text":"the anticipated use of such services to their research and non-research uses.","page_number":172,"box":{"x":68,"y":181,"width":555,"height":11}},{"id":"6bd12988-5cf0-430e-8a1f-76ad27335705","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":172,"box":{"x":102,"y":203,"width":802,"height":12}},{"id":"50316cf9-95e2-4832-94e5-71b55ad48456","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":172,"box":{"x":68,"y":218,"width":825,"height":12}},{"id":"a1fb3ca6-22c5-4269-a5f2-0c20db0c4d56","block_type":"box","text":"or agree with clients to have research costs paid by clients through research payment accounts that are directly","page_number":172,"box":{"x":69,"y":234,"width":798,"height":11}},{"id":"456b0462-d4bf-491d-a0ef-d579ac75dd20","block_type":"box","text":"funded or funded by a specific client research charge collected alongside execution commissions, provided that the","page_number":172,"box":{"x":68,"y":249,"width":824,"height":11}},{"id":"a3b15148-94a9-4a16-bb1f-56219978e757","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":172,"box":{"x":70,"y":264,"width":812,"height":11}},{"id":"4599eb75-e963-45bd-854d-58a0d3244bb5","block_type":"box","text":"resources and not through soft dollars or commission sharing arrangements.","page_number":172,"box":{"x":69,"y":279,"width":547,"height":11}},{"id":"ddcc3d80-1121-4d64-95be-a6fb891d18e7","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":172,"box":{"x":102,"y":302,"width":804,"height":11}},{"id":"5c0cafc1-a87c-4254-a974-a653148e6e29","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":172,"box":{"x":68,"y":317,"width":806,"height":11}},{"id":"23487275-5d07-47cc-a61a-9d455369bcd5","block_type":"box","text":"Investment Company Act. Subject to policies established by the Board of Directors of the Master Por tfolio, BlackRock","page_number":172,"box":{"x":70,"y":332,"width":836,"height":11}},{"id":"4d90907a-0735-480e-9829-4d9ba2323aae","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":172,"box":{"x":70,"y":347,"width":777,"height":11}},{"id":"7b8e1abe-87cc-427c-98a0-96dc4b472da8","block_type":"box","text":"brokerage.","page_number":172,"box":{"x":69,"y":362,"width":74,"height":11}},{"id":"d4b3de8b-ec6f-4aa8-8124-e61d3e955b0c","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":172,"box":{"x":102,"y":385,"width":781,"height":11}},{"id":"82d61b1e-07ae-4156-b274-da566e294e46","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":172,"box":{"x":68,"y":400,"width":810,"height":11}},{"id":"468f1dd1-dab3-472c-84cf-5f65e58d1651","block_type":"box","text":"research services. FINRA has adopted rules expressly permitting these types of arrangements under cer tain","page_number":172,"box":{"x":69,"y":415,"width":771,"height":11}},{"id":"03899577-8799-4726-9372-9e34ad754727","block_type":"box","text":"circumstances. Generally, the broker will provide research “credits” in these situations at a rate that is higher than","page_number":172,"box":{"x":69,"y":430,"width":818,"height":11}},{"id":"61aa13c7-78c1-469d-bbf5-6b7ed06e6cd1","block_type":"box","text":"that available for typical secondary market transactions. These arrangements may not fall within the safe harbor of","page_number":172,"box":{"x":68,"y":445,"width":821,"height":12}},{"id":"cc8fa154-bc55-4733-893d-876dfe8ebbf9","block_type":"box","text":"Section 28(e).","page_number":172,"box":{"x":69,"y":460,"width":99,"height":11}},{"id":"8db96f7f-71d0-4c29-91ec-66fa1956f862","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":172,"box":{"x":102,"y":483,"width":755,"height":9}},{"id":"1c72016e-f4aa-464a-8ee4-5b0240cb0ec1","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":172,"box":{"x":69,"y":498,"width":828,"height":11}},{"id":"8cfae314-0146-43e3-a9b4-2f7bcca85852","block_type":"box","text":"sells shares of the mutual funds advised by BlackRock neither qualifies nor disqualifies such broker or dealer to","page_number":172,"box":{"x":69,"y":513,"width":799,"height":11}},{"id":"fca1820e-735e-41a9-b9a6-27a36a32b257","block_type":"box","text":"execute transactions for those mutual funds.","page_number":172,"box":{"x":69,"y":528,"width":319,"height":9}},{"id":"72a416b8-20a3-4349-b6bf-97141b6ebc06","block_type":"box","text":"Each Fund anticipates that its brokerage transactions involving foreign securities generally will be conducted","page_number":172,"box":{"x":102,"y":551,"width":770,"height":11}},{"id":"9ee485b7-30b4-4f2b-9199-bc3c5326ae5f","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":172,"box":{"x":70,"y":566,"width":825,"height":11}},{"id":"561831b7-0f2f-4c9d-816b-c00cb6a7e4fa","block_type":"box","text":"in the form of depositary receipts, or other securities conver tible into foreign equity securities. Depositary receipts","page_number":172,"box":{"x":70,"y":581,"width":816,"height":12}},{"id":"ea26fe87-8290-4a8b-97d0-01c9488390c4","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":172,"box":{"x":69,"y":597,"width":805,"height":11}},{"id":"16714863-e9f5-4821-9584-8cc113db4bdd","block_type":"box","text":"American Depositary Receipts, like other securities traded in the United States, will be subject to negotiated","page_number":172,"box":{"x":68,"y":612,"width":773,"height":11}},{"id":"522fe1c9-3259-409a-893e-24dd7db0b7c5","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":172,"box":{"x":69,"y":627,"width":798,"height":11}},{"id":"523e2257-6770-4c7a-9066-5f714e74abed","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":172,"box":{"x":70,"y":642,"width":812,"height":11}},{"id":"354469ce-fcc1-4c38-a9d6-aa594e2ac9f9","block_type":"box","text":"extent necessary to meet anticipated redemptions. Under present conditions, it is not believed that these","page_number":172,"box":{"x":69,"y":657,"width":754,"height":11}},{"id":"7cae0403-75c4-45f0-a138-20a37103c29b","block_type":"box","text":"considerations will have a significant effect on a Fund’s por tfolio strategies.","page_number":172,"box":{"x":69,"y":672,"width":540,"height":11}},{"id":"03dc197f-46c8-4b40-b189-60ee63dd3437","block_type":"box","text":"See “Por tfolio Transactions and Brokerage” in the SAI for information about the brokerage commissions paid by","page_number":172,"box":{"x":102,"y":695,"width":798,"height":11}},{"id":"d82ee700-8d84-4ee7-86bc-590a4560ae9b","block_type":"box","text":"your Fund, including commissions paid to affiliates, if any, for the periods indicated.","page_number":172,"box":{"x":68,"y":710,"width":597,"height":11}},{"id":"f36506ef-268d-42fb-806f-93b99038ee3c","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":172,"box":{"x":102,"y":733,"width":802,"height":11}},{"id":"4a401bbe-195d-435d-9691-0e2cba880164","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":172,"box":{"x":68,"y":748,"width":822,"height":11}},{"id":"b0fb58d9-995c-4e64-a23c-56b77aa4e5e5","block_type":"box","text":"are available elsewhere. Under the Investment Company Act, persons affiliated with a Fund and persons who are","page_number":172,"box":{"x":69,"y":763,"width":804,"height":11}},{"id":"76b30dc6-25ed-4aa8-ac53-1a9710d7eb2b","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":172,"box":{"x":69,"y":778,"width":832,"height":11}},{"id":"c54d935e-e094-4938-b3b0-817406d2afa7","block_type":"box","text":"of securities unless a permissive order allowing such transactions is obtained from the Commission. Since","page_number":172,"box":{"x":69,"y":793,"width":762,"height":11}},{"id":"6a16ba10-88df-4704-8642-ed316840c074","block_type":"box","text":"transactions in the OTC market usually involve transactions with the dealers acting as principal for their own","page_number":172,"box":{"x":68,"y":808,"width":770,"height":11}},{"id":"e7a07af9-a493-4a32-822f-9cad284f40ea","block_type":"box","text":"accounts, the Funds will not deal with affiliated persons in connection with such transactions. However, an affiliated","page_number":172,"box":{"x":69,"y":823,"width":828,"height":11}},{"id":"efadd642-7b8c-4146-955b-b812c8333aa5","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":172,"box":{"x":70,"y":838,"width":814,"height":12}},{"id":"253fe2cb-e5ab-4a0e-9ce2-1633e9cad20c","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":172,"box":{"x":69,"y":853,"width":825,"height":12}},{"id":"c482898c-857d-4613-9639-cd6e9da698e9","block_type":"box","text":"commission received by non-affiliated brokers in connection with comparable transactions.","page_number":172,"box":{"x":69,"y":869,"width":645,"height":11}},{"id":"5bc9f29d-bcf1-43f3-bf11-512647e4476e","block_type":"box","text":"OTC issues, including most fixed-income securities such as corporate debt and U.S. Government Securities, are","page_number":172,"box":{"x":102,"y":891,"width":797,"height":12}},{"id":"1081e7d6-be15-4630-972c-e19567436dc1","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":172,"box":{"x":69,"y":906,"width":826,"height":12}},{"id":"5aabc4f9-6c0f-4028-953c-1b9c82753964","block_type":"box","text":"II-126","page_number":172,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"852061c9-6539-4ae0-888c-6e7168340930","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":172,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3781ba5f-c530-4496-9dc6-1fa540868e63","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":173,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"adbe104a-ab06-4a7a-a5b1-9794fe098d68","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":173,"box":{"x":69,"y":60,"width":833,"height":11}},{"id":"7b46ee22-2a95-4b8f-b0cd-be673d22547f","block_type":"box","text":"domestic securities will generally include a “spread,” which is the difference between the prices at which the dealer","page_number":173,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"5c9913a5-8207-4376-a334-0e4b69f4c373","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":173,"box":{"x":70,"y":90,"width":730,"height":11}},{"id":"24482812-aee4-4e36-babb-623752557a45","block_type":"box","text":"Purchases of money market instruments by a Fund are made from dealers, underwriters and issuers. The Funds","page_number":173,"box":{"x":102,"y":113,"width":800,"height":11}},{"id":"3d23d95d-0091-4717-8936-feb348b8f0ff","block_type":"box","text":"do not currently expect to incur any brokerage commission expense on such transactions because money market","page_number":173,"box":{"x":69,"y":128,"width":807,"height":11}},{"id":"0335b15a-af18-45e6-adc9-15341ea0fffe","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":173,"box":{"x":70,"y":143,"width":812,"height":11}},{"id":"3d67dbd3-d2aa-488e-bcea-d6c37f78d591","block_type":"box","text":"stated commission. The price of the security, however, usually includes a profit to the dealer. Each money market","page_number":173,"box":{"x":69,"y":158,"width":807,"height":11}},{"id":"edb22804-7a76-4679-a4dc-629e9362ccf6","block_type":"box","text":"fund intends to purchase only securities with remaining maturities of 397 days or less as determined in accordance","page_number":173,"box":{"x":68,"y":173,"width":827,"height":11}},{"id":"16b2dd58-eb84-4257-9616-c42aa7e246a1","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":173,"box":{"x":68,"y":188,"width":817,"height":11}},{"id":"3bab2ed6-4e5a-48f2-8467-d0172ae8717f","block_type":"box","text":"high. However, because brokerage commissions will not normally be paid with respect to investments made by a","page_number":173,"box":{"x":69,"y":204,"width":802,"height":11}},{"id":"b17b7070-59a2-49f5-b28d-94fe226f2f8a","block_type":"box","text":"money market fund, the turnover rates should not adversely affect the Fund’s NAVs or net income.","page_number":173,"box":{"x":69,"y":218,"width":700,"height":12}},{"id":"0d7c4838-7897-4c18-99b9-80ae9e42e636","block_type":"box","text":"Securities purchased in underwritten offerings include a fixed amount of compensation to the underwriter,","page_number":173,"box":{"x":102,"y":241,"width":756,"height":11}},{"id":"82ed6edf-163f-4bbf-9b4d-dcd743af201d","block_type":"box","text":"generally referred to as the underwriter’s concession or discount. When offered securities are purchased or sold","page_number":173,"box":{"x":68,"y":256,"width":804,"height":12}},{"id":"05eee6fa-74c0-4102-8d4b-98cbb3336f78","block_type":"box","text":"directly from or to an issuer, no commissions or discounts are paid except where required by local markets.","page_number":173,"box":{"x":69,"y":271,"width":766,"height":12}},{"id":"ad0d62ef-c772-4f2e-a548-935299535e5e","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":173,"box":{"x":101,"y":294,"width":780,"height":11}},{"id":"8ce2999d-7b28-4b7d-9b35-8073dcc2a6ac","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":173,"box":{"x":69,"y":309,"width":826,"height":11}},{"id":"0e1fd06a-e0f5-4c6b-9a13-dbf350c3c036","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":173,"box":{"x":69,"y":324,"width":806,"height":11}},{"id":"bc335357-4682-4fcb-8b3d-18c3dfac370f","block_type":"box","text":"anticipated need for liquidity makes such action desirable. Any such repurchase prior to maturity reduces the","page_number":173,"box":{"x":69,"y":339,"width":776,"height":12}},{"id":"67493b73-5aaf-418f-8ad7-2d454022aa23","block_type":"box","text":"possibility that a Fund would incur a capital loss in liquidating commercial paper, especially if interest rates have","page_number":173,"box":{"x":70,"y":355,"width":800,"height":11}},{"id":"0507faef-9f69-4190-89c1-5e497958f15b","block_type":"box","text":"risen since acquisition of such commercial paper.","page_number":173,"box":{"x":69,"y":370,"width":352,"height":11}},{"id":"48de0703-7318-46ce-84fe-d944b780d4e9","block_type":"box","text":"Investment decisions for each Fund and for other investment accounts managed by the Manager or sub-advisers","page_number":173,"box":{"x":102,"y":392,"width":800,"height":12}},{"id":"79806874-5572-4869-b1b9-93e1dfa6870e","block_type":"box","text":"are made independently of each other in light of differing conditions. BlackRock allocates investments among client","page_number":173,"box":{"x":69,"y":407,"width":824,"height":12}},{"id":"47f8ea2f-54ad-4525-91f0-91df18486a12","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":173,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"51663b3b-f3ed-492d-8404-94669885a197","block_type":"box","text":"These factors include: (i) investment objectives or strategies for par ticular accounts, including sector, industry,","page_number":173,"box":{"x":68,"y":438,"width":788,"height":11}},{"id":"a810a8bf-afe5-464a-900b-df058c35e451","block_type":"box","text":"country or region and capitalization weightings, (ii) tax considerations of an account, (iii) risk or investment","page_number":173,"box":{"x":69,"y":453,"width":759,"height":11}},{"id":"ccc14285-b65d-4cd8-9607-4078cb9a211b","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":173,"box":{"x":69,"y":468,"width":780,"height":11}},{"id":"8a748fbb-7093-4c5e-b557-0290f029f57d","block_type":"box","text":"available investment, (vi) cash availability and liquidity requirements for accounts, (vii) regulatory restrictions,","page_number":173,"box":{"x":69,"y":483,"width":777,"height":11}},{"id":"9067a607-044c-4cc0-8223-0fd6d836ea8b","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":173,"box":{"x":69,"y":498,"width":788,"height":11}},{"id":"1c350f7f-25b9-4f09-ab96-c7fd30f2b310","block_type":"box","text":"approved by BlackRock’s general counsel. Moreover, investments may not be allocated to one client account over","page_number":173,"box":{"x":69,"y":514,"width":811,"height":11}},{"id":"ba6aff53-15da-4d1b-ab29-6c8ff0e1af42","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":173,"box":{"x":69,"y":528,"width":829,"height":12}},{"id":"973e8df1-6397-456d-9743-1def8b3854f9","block_type":"box","text":"generate higher fees paid by one client account over another or to produce greater per formance compensation to","page_number":173,"box":{"x":68,"y":543,"width":808,"height":12}},{"id":"0e3c3472-0e15-40a5-a73b-61fc1f7cd866","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":173,"box":{"x":70,"y":559,"width":832,"height":11}},{"id":"a36bef78-d560-440c-8b61-cfde46853b17","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":173,"box":{"x":70,"y":574,"width":836,"height":11}},{"id":"f62996ee-2632-454b-a315-456c36844310","block_type":"box","text":"or (v) to manage or equalize investment per formance among different client accounts.","page_number":173,"box":{"x":69,"y":589,"width":613,"height":11}},{"id":"fac8e22b-b637-4b1a-8215-b956c8c50586","block_type":"box","text":"Equity securities will generally be allocated among client accounts within the same investment mandate on a pro","page_number":173,"box":{"x":102,"y":612,"width":802,"height":11}},{"id":"4ce9bc47-b505-494a-9814-d79a921d35ee","block_type":"box","text":"rata basis. All allocations of equity securities will be subject, where relevant, to share minimums established for","page_number":173,"box":{"x":69,"y":627,"width":800,"height":11}},{"id":"378be71e-3fff-49f0-a322-03f424aaff62","block_type":"box","text":"accounts and compliance constraints.","page_number":173,"box":{"x":69,"y":642,"width":269,"height":11}},{"id":"c2299ddf-4adb-4433-9e75-b4191113ba2b","block_type":"box","text":"Initial public offerings of securities may be over-subscribed and subsequently trade at a premium in the","page_number":173,"box":{"x":102,"y":664,"width":736,"height":12}},{"id":"594cfe51-b6d9-4e93-bda0-72d139b3bef6","block_type":"box","text":"secondary market. In these situations, the supply of securities available for client accounts is often less than the","page_number":173,"box":{"x":69,"y":680,"width":808,"height":11}},{"id":"fd1fe6a6-2022-4bca-ad8a-f8a30b374d92","block_type":"box","text":"amount of securities the accounts would otherwise take. In order to allocate these investments fairly and equitably","page_number":173,"box":{"x":69,"y":695,"width":821,"height":11}},{"id":"c886202e-d7da-4f30-889a-04acd66d6111","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":173,"box":{"x":69,"y":710,"width":823,"height":11}},{"id":"306510f4-3fb2-4a70-912c-cd1346e89aca","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":173,"box":{"x":70,"y":725,"width":783,"height":11}},{"id":"3879e902-4d45-436d-87e7-425494ba4899","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":173,"box":{"x":69,"y":740,"width":793,"height":11}},{"id":"ffb0203e-2677-41a1-bf37-baec950c5e76","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":173,"box":{"x":69,"y":755,"width":831,"height":11}},{"id":"69b60726-258d-4a5e-8746-c98ed267978c","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":173,"box":{"x":69,"y":770,"width":828,"height":11}},{"id":"f21c85ab-83a6-4149-ae07-a989bcafd0d6","block_type":"box","text":"the case of international equity securities, the country where the offering is taking place and the investment mandate","page_number":173,"box":{"x":68,"y":785,"width":839,"height":12}},{"id":"65d6d895-95a2-49bf-bbdd-14d3bbd06c91","block_type":"box","text":"of the client account. Generally, shares received during the initial public offering will be allocated among par ticipating","page_number":173,"box":{"x":69,"y":801,"width":835,"height":11}},{"id":"241a6257-d50b-4a64-b337-26dbf9fa5495","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":173,"box":{"x":69,"y":816,"width":819,"height":11}},{"id":"a74cc752-8f4f-4e37-a326-f47e3014df52","block_type":"box","text":"allocated among all accounts for which the investment is eligible, por tfolio managers may rotate such investment","page_number":173,"box":{"x":69,"y":831,"width":808,"height":11}},{"id":"7f02aee2-8d94-49cd-b9e5-20d0912080e9","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":173,"box":{"x":69,"y":846,"width":791,"height":11}},{"id":"f06cd84e-e020-40af-9d6b-a897ddf72799","block_type":"box","text":"accounts over time. Other allocation methodologies that are considered by BlackRock to be fair and equitable to","page_number":173,"box":{"x":69,"y":861,"width":799,"height":11}},{"id":"804dfb2c-be5c-46e0-9f16-6d420a17da87","block_type":"box","text":"clients may be used as well.","page_number":173,"box":{"x":69,"y":876,"width":200,"height":11}},{"id":"aebdea09-5e5f-474f-96cd-f206b8cc6254","block_type":"box","text":"II-127","page_number":173,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"68b2791e-b142-4b55-bc51-e0acdedd787b","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":173,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"40d6477e-69c4-419f-9f5f-4aedaadb08cd","block_type":"box","text":"Because different accounts may have differing investment objectives and policies, BlackRock may buy and sell","page_number":174,"box":{"x":102,"y":45,"width":789,"height":11}},{"id":"914fadb6-122a-4273-a99a-a7852efeb7b9","block_type":"box","text":"the same securities at the same time for different clients based on the par ticular investment objective, guidelines","page_number":174,"box":{"x":68,"y":60,"width":815,"height":11}},{"id":"a69979c2-d391-4a3c-b290-d52ee92bbc07","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":174,"box":{"x":69,"y":75,"width":835,"height":11}},{"id":"59c0d52b-cc36-4f0a-b3cd-f50d0b51f85b","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":174,"box":{"x":68,"y":90,"width":833,"height":11}},{"id":"baa5dc81-91fa-4d9f-91e6-d63d5909808e","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":174,"box":{"x":69,"y":105,"width":829,"height":11}},{"id":"c5dfc1db-958a-4b75-97e7-d35555dd153c","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":174,"box":{"x":69,"y":120,"width":825,"height":12}},{"id":"4d98d58b-2c92-4308-a4f6-7765ca5f7dd1","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":174,"box":{"x":69,"y":135,"width":806,"height":11}},{"id":"63d96788-2463-4ac8-98b9-b775bea80ff1","block_type":"box","text":"adversely impacting other BlackRock clients that still hold the security. If purchases or sales of securities arise for","page_number":174,"box":{"x":69,"y":150,"width":814,"height":12}},{"id":"551dcd4a-f3a6-4530-8991-cd81291fc411","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":174,"box":{"x":69,"y":166,"width":836,"height":9}},{"id":"76fea55b-e6fe-4029-9b51-a6f058b1f88a","block_type":"box","text":"affiliate act as investment manager, transactions in such securities will be made, insofar as feasible, for the","page_number":174,"box":{"x":69,"y":181,"width":773,"height":11}},{"id":"43ef8095-c5ce-4c06-947f-7612875026bf","block_type":"box","text":"respective funds and clients in a manner deemed equitable to all.","page_number":174,"box":{"x":69,"y":196,"width":467,"height":11}},{"id":"3ea1b802-d345-44c9-82a3-5f7d1c4ca264","block_type":"box","text":"In cer tain instances, BlackRock may find it efficient for purposes of seeking to obtain best execution, to","page_number":174,"box":{"x":102,"y":218,"width":741,"height":12}},{"id":"7ce3cf38-19bb-4bbe-9e1d-ee693094afef","block_type":"box","text":"aggregate cer tain contemporaneous purchases or sale orders of its advisory accounts. In general, all","page_number":174,"box":{"x":69,"y":234,"width":721,"height":11}},{"id":"ae91c199-4cfd-4a5d-abe0-ab7bb551377f","block_type":"box","text":"contemporaneous trades for client accounts under management by the same por tfolio manager or investment team","page_number":174,"box":{"x":69,"y":249,"width":824,"height":11}},{"id":"bd48981b-fe4e-4b52-8bb2-e8e918b42f71","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":174,"box":{"x":68,"y":264,"width":795,"height":11}},{"id":"f42df37d-a2e6-4dbf-833f-89427594e2f5","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":174,"box":{"x":69,"y":279,"width":834,"height":11}},{"id":"9db81415-8080-4f13-b96b-f645ec765f00","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":174,"box":{"x":69,"y":294,"width":783,"height":11}},{"id":"478fbaf1-7a6a-41e1-909d-bdb8717744fd","block_type":"box","text":"par ticular por tfolio manager or management team is filled at several different prices through multiple trades, all","page_number":174,"box":{"x":70,"y":309,"width":796,"height":11}},{"id":"7183c2ed-7bf4-4e67-87a8-9892a8a75720","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":174,"box":{"x":69,"y":324,"width":821,"height":12}},{"id":"974eaca8-3d0f-4864-9bb6-61c6020b03a1","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":174,"box":{"x":68,"y":339,"width":819,"height":12}},{"id":"6c0155ba-9d7c-4388-9468-c90f14180341","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":174,"box":{"x":70,"y":355,"width":771,"height":11}},{"id":"f52cad97-fae5-4682-8e48-a0bc84b24e60","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":174,"box":{"x":68,"y":370,"width":815,"height":11}},{"id":"e0705ee6-d6ab-423f-b681-4ee3d421c7ca","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":174,"box":{"x":68,"y":385,"width":835,"height":11}},{"id":"a9661024-148c-411e-b285-b54eb72f736c","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":174,"box":{"x":68,"y":400,"width":817,"height":11}},{"id":"90628be3-9126-4248-ab26-8d27dbd66aa9","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":174,"box":{"x":68,"y":415,"width":823,"height":11}},{"id":"91e10ff1-f308-4bb7-9082-a4d04bf19f3e","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":174,"box":{"x":69,"y":430,"width":803,"height":11}},{"id":"c7aff1b9-9a57-4482-92eb-64a95ba521cb","block_type":"box","text":"A Fund will not purchase securities during the existence of any underwriting or selling group relating to such","page_number":174,"box":{"x":101,"y":453,"width":767,"height":11}},{"id":"38593f23-7855-4433-8697-e5de15a51194","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":174,"box":{"x":69,"y":468,"width":826,"height":11}},{"id":"854de931-30a4-49e8-ba6b-7828d8244b4e","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":174,"box":{"x":69,"y":483,"width":816,"height":11}},{"id":"e84d4208-8dc5-49da-a082-e43002a6841d","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":174,"box":{"x":70,"y":498,"width":833,"height":11}},{"id":"3507d132-a176-4408-a098-59f3b844067f","block_type":"box","text":"affiliated person of the foregoing entities except as permitted by Commission exemptive order or by applicable law.","page_number":174,"box":{"x":69,"y":513,"width":818,"height":12}},{"id":"ad392c80-6eaf-41ab-951f-3e04516adf76","block_type":"box","text":"A Fund’s purchase and sale orders for securities may be combined with those of other investment companies,","page_number":174,"box":{"x":101,"y":536,"width":786,"height":11}},{"id":"ba1a0740-435c-44ed-a4b9-c80d970dcd33","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":174,"box":{"x":69,"y":551,"width":814,"height":11}},{"id":"f677e76a-c682-492d-8b74-f2672558943d","block_type":"box","text":"one or more other accounts managed or advised by BlackRock are considered at or about the same time,","page_number":174,"box":{"x":69,"y":566,"width":751,"height":11}},{"id":"387eed40-a469-4ea7-8839-8782d7e2c6db","block_type":"box","text":"transactions in such securities are allocated among the Fund and the other accounts in a manner deemed equitable","page_number":174,"box":{"x":68,"y":582,"width":829,"height":11}},{"id":"0c6ade11-1451-420e-9fc3-573375bb6fa6","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":174,"box":{"x":68,"y":596,"width":799,"height":12}},{"id":"e4ae440e-e063-40a5-b74f-9b63cca61374","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":174,"box":{"x":69,"y":612,"width":834,"height":11}},{"id":"b5d82b46-e070-4853-9d78-f249e70f7ae7","block_type":"box","text":"transactions and to negotiate lower transaction costs will be beneficial to the Fund. BlackRock may deal, trade and","page_number":174,"box":{"x":68,"y":627,"width":820,"height":11}},{"id":"4381cc58-65ec-4eb3-b5c3-284fea60291c","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":174,"box":{"x":70,"y":642,"width":812,"height":11}},{"id":"ad02209f-17b4-4a71-8369-4dc4e92fd1eb","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":174,"box":{"x":69,"y":657,"width":781,"height":10}},{"id":"eaebe822-5eb8-4e97-b467-7434b1356c02","block_type":"box","text":"conformity with the Investment Company Act and Commission rules and regulations. Under these provisions, any","page_number":174,"box":{"x":69,"y":672,"width":805,"height":11}},{"id":"9bee1145-c9ee-4f00-83c5-48c4c90e4e89","block_type":"box","text":"commissions paid to affiliated brokers or dealers must be reasonable and fair compared to the commissions charged","page_number":174,"box":{"x":69,"y":687,"width":840,"height":11}},{"id":"820f5269-0ba4-4990-a39c-b39cd0e55c94","block_type":"box","text":"by other brokers or dealers in comparable transactions. A Fund will not deal with affiliates in principal transactions","page_number":174,"box":{"x":69,"y":702,"width":815,"height":11}},{"id":"03b5dcd0-117e-4e79-bf23-19cdf474b0e9","block_type":"box","text":"unless permitted by applicable Commission rules or regulations, or by Commission exemptive order.","page_number":174,"box":{"x":69,"y":718,"width":713,"height":11}},{"id":"c494813c-ebf4-4c39-a511-05c97ffbe9b6","block_type":"box","text":"Portfolio Turnover","page_number":174,"box":{"x":69,"y":748,"width":129,"height":9}},{"id":"3629536e-db1f-440b-8584-08a35a27a86d","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":174,"box":{"x":101,"y":770,"width":798,"height":12}},{"id":"ad003aa5-dea4-4225-91e3-35d51aa056ab","block_type":"box","text":"securities (exclusive of purchases or sales of U.S. Government Securities and all other securities whose maturities at","page_number":174,"box":{"x":69,"y":785,"width":839,"height":11}},{"id":"9b176fa3-6e47-4dfc-8189-af6a7a81d3f3","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":174,"box":{"x":68,"y":801,"width":814,"height":11}},{"id":"076e3998-87b9-4266-bf70-0aaf8b4bd59f","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":174,"box":{"x":68,"y":816,"width":777,"height":11}},{"id":"a0eae1a7-0d65-46b7-9e0c-2dd8630abfa1","block_type":"box","text":"dividends and/or ordinary income dividends, and in correspondingly greater transaction costs in the form of dealer","page_number":174,"box":{"x":69,"y":831,"width":818,"height":11}},{"id":"63986d7c-1324-42b3-a232-b73a85f82a7c","block_type":"box","text":"spreads and brokerage commissions, which are borne directly by a Fund.","page_number":174,"box":{"x":69,"y":846,"width":519,"height":11}},{"id":"f6d1f72f-601a-4c33-8a06-43259816d18e","block_type":"box","text":"II-128","page_number":174,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"8a6338fe-fe12-45a2-a4e0-1775e09ab726","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":174,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a3ec9ae6-cbb3-48a3-a8ab-71ade0e42504","block_type":"box","text":"DIVIDENDS AND TAXES","page_number":175,"box":{"x":396,"y":45,"width":186,"height":10}},{"id":"bb1b4a04-fe26-47c6-b7fe-e0ff637c35ce","block_type":"box","text":"Dividends","page_number":175,"box":{"x":69,"y":76,"width":69,"height":8}},{"id":"20438066-ed25-42ee-8caf-7de7ae02ab23","block_type":"box","text":"Each Fund intends to distribute substantially all of its net investment income, if any. Dividends from such net","page_number":175,"box":{"x":102,"y":98,"width":776,"height":11}},{"id":"c150a735-32f4-4690-93cd-dbf9706ea9d2","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":175,"box":{"x":70,"y":113,"width":795,"height":11}},{"id":"9c433d7e-197c-4b9b-bc16-3608579e0bc1","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":175,"box":{"x":69,"y":128,"width":837,"height":12}},{"id":"b695f85f-a93c-400a-aa71-8903e78cb9fe","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":175,"box":{"x":69,"y":143,"width":836,"height":12}},{"id":"d0217c9f-9d8b-41e5-9734-f742568df0e9","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":175,"box":{"x":70,"y":159,"width":822,"height":11}},{"id":"fd7cb208-0e78-4568-86fa-702bb2306718","block_type":"box","text":"net income from cer tain foreign currency transactions, such income will be distributed at least annually.","page_number":175,"box":{"x":69,"y":174,"width":739,"height":11}},{"id":"57f1dbcc-475e-4175-bf10-d20cd8fb3a04","block_type":"box","text":"For information concerning the manner in which dividends may be reinvested automatically in shares of each","page_number":175,"box":{"x":102,"y":196,"width":773,"height":12}},{"id":"0b1ba752-5eb4-406e-bd7c-3f0a3e3ed12d","block_type":"box","text":"Fund, as applicable, see “Shareholder Services — Automatic Dividend Reinvestment Plan.” Shareholders may also","page_number":175,"box":{"x":70,"y":212,"width":819,"height":11}},{"id":"83bcc6a5-21b2-40da-bbc4-712add5445b5","block_type":"box","text":"elect in writing to receive any such dividends in cash. Dividends are taxable to shareholders, as discussed below,","page_number":175,"box":{"x":69,"y":227,"width":807,"height":11}},{"id":"21dcb274-c63d-465e-84d7-b363d96dbf22","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":175,"box":{"x":68,"y":242,"width":800,"height":11}},{"id":"811aadec-b03e-44f8-856c-3ec6b76a99e5","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":175,"box":{"x":69,"y":257,"width":801,"height":11}},{"id":"285fab22-74ee-49af-981b-39054761111a","block_type":"box","text":"result of the service, distribution and higher transfer agency fees applicable to CDSC shares, the service fees","page_number":175,"box":{"x":69,"y":272,"width":783,"height":11}},{"id":"060de9af-ae3d-4e28-b714-9ec4cdc57c24","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":175,"box":{"x":69,"y":287,"width":820,"height":11}},{"id":"40b37b71-9812-48c5-b24d-7ee81319e994","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":175,"box":{"x":69,"y":302,"width":794,"height":11}},{"id":"ff1023ac-f825-4ca9-93c2-1567e08c089c","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":175,"box":{"x":69,"y":317,"width":834,"height":12}},{"id":"95a2e5ab-3459-4914-aa7c-da482e664a9f","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":175,"box":{"x":68,"y":332,"width":826,"height":11}},{"id":"d3b487d0-477b-4866-b604-46244c24bcda","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":175,"box":{"x":69,"y":348,"width":816,"height":11}},{"id":"b0917b4d-b07d-4d8d-8f65-004d6577e122","block_type":"box","text":"fees and higher transfer agency fees applicable to CDSC shares.","page_number":175,"box":{"x":68,"y":363,"width":461,"height":11}},{"id":"697edd24-bebb-4cee-838d-a86574db25e8","block_type":"box","text":"Taxes","page_number":175,"box":{"x":68,"y":393,"width":42,"height":9}},{"id":"b103d601-3552-4bc3-bcb9-abf37e98c7aa","block_type":"box","text":"Each Fund intends to continue to qualify for the special tax treatment afforded to regulated investment","page_number":175,"box":{"x":102,"y":416,"width":732,"height":11}},{"id":"d7b8c2bf-1802-457d-9a7d-647c23dee722","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":175,"box":{"x":69,"y":431,"width":825,"height":11}},{"id":"433e34f7-cfec-4337-aa2b-901d65da8221","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":175,"box":{"x":70,"y":446,"width":817,"height":11}},{"id":"be7a47fe-0ca9-4a8e-9810-de47bbc16fb0","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":175,"box":{"x":69,"y":461,"width":832,"height":11}},{"id":"93ebdcc4-1a08-46fe-ad16-b38513dd1400","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":175,"box":{"x":69,"y":476,"width":791,"height":11}},{"id":"8dd0bce0-6841-466f-a64e-d848eaab4d30","block_type":"box","text":"company, a Fund must meet cer tain requirements regarding the source of its income and the composition and","page_number":175,"box":{"x":69,"y":491,"width":786,"height":12}},{"id":"d441c640-a671-40f0-9fd8-73105825e2df","block_type":"box","text":"diversification of its assets. See Par t II, “Investment Risks and Considerations—Investment Restrictions (All Funds)”","page_number":175,"box":{"x":69,"y":506,"width":831,"height":11}},{"id":"0c1ed1fe-304c-41b6-b85b-b49d772218f0","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":175,"box":{"x":68,"y":521,"width":819,"height":12}},{"id":"3f99cd3d-e08b-42eb-b3e7-3e64dc5b095f","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":175,"box":{"x":69,"y":537,"width":824,"height":11}},{"id":"a622c07c-54b4-4f72-aaad-9fcdd890eebf","block_type":"box","text":"requirement and various other requirements of the Code applicable to regulated investment companies.","page_number":175,"box":{"x":69,"y":552,"width":739,"height":11}},{"id":"bf569f7b-abe4-4414-b77d-8b1e4762495b","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":175,"box":{"x":101,"y":574,"width":792,"height":12}},{"id":"abf4c285-7c18-4468-ba12-60dce7a78500","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":175,"box":{"x":68,"y":589,"width":819,"height":12}},{"id":"f42c8bdb-c724-44cd-ad84-d6cc1259260c","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":175,"box":{"x":70,"y":605,"width":830,"height":11}},{"id":"4fab2342-6e7e-470b-90e6-b524a080dc49","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":175,"box":{"x":68,"y":620,"width":744,"height":11}},{"id":"2fbc5570-19b4-4c83-bbfe-22584d590471","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":175,"box":{"x":69,"y":635,"width":835,"height":11}},{"id":"e5db3082-158f-4c29-9312-714bfb3e1361","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":175,"box":{"x":69,"y":650,"width":808,"height":11}},{"id":"cdf53d87-5552-4e0b-a441-7dbcdc373fd1","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":175,"box":{"x":69,"y":665,"width":767,"height":11}},{"id":"39793c7f-db1d-48ee-a267-ff0e2924a374","block_type":"box","text":"investments in par tnerships, including in qualified publicly-traded par tnerships, may result in the Fund being subject","page_number":175,"box":{"x":70,"y":680,"width":826,"height":12}},{"id":"63774664-e5f2-448d-9d44-213d304ee796","block_type":"box","text":"to state, local, or non-U.S. income, franchise or withholding tax liabilities.","page_number":175,"box":{"x":68,"y":695,"width":521,"height":12}},{"id":"6d8f8398-51f7-4f32-b6dc-e20095946a29","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":175,"box":{"x":102,"y":718,"width":798,"height":11}},{"id":"7d6191dc-a9cf-4f8d-a836-1c015b63fe25","block_type":"box","text":"qualify as a regulated investment company under the Code, notwithstanding the availability of cer tain relief","page_number":175,"box":{"x":69,"y":733,"width":762,"height":11}},{"id":"2494e6f2-6c86-46fa-9c2b-7de5adc0aa8b","block_type":"box","text":"provisions, such Fund would be taxed in the same manner as an ordinary corporation and all distributions from","page_number":175,"box":{"x":70,"y":748,"width":789,"height":11}},{"id":"e22edf66-6d82-4409-a59c-e259921db87e","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":175,"box":{"x":69,"y":763,"width":837,"height":12}},{"id":"841cd16c-8442-44c1-85f3-f698e77b55bc","block_type":"box","text":"ordinary dividend income eligible for taxation at a reduced tax rate for non-corporate shareholders and the dividends","page_number":175,"box":{"x":69,"y":778,"width":831,"height":12}},{"id":"d4b872ca-b537-4fbb-920b-f97f6ad4cae3","block_type":"box","text":"received deduction for corporate shareholders. However, a Municipal Fund’s distributions derived from income on tax","page_number":175,"box":{"x":69,"y":794,"width":837,"height":11}},{"id":"dc962782-ef3d-4b36-9c1e-d4d5ba5a62f0","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":175,"box":{"x":69,"y":809,"width":825,"height":11}},{"id":"12acab9f-1e57-4fb9-a236-5e7dc9cb4efe","block_type":"box","text":"series of a regulated investment company that consists of multiple series is treated as a separate corporation for","page_number":175,"box":{"x":69,"y":824,"width":811,"height":11}},{"id":"87a24267-2d86-4512-ba32-8c6ee2553a85","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":175,"box":{"x":70,"y":839,"width":813,"height":11}},{"id":"8b7e8d34-9e0f-4ffd-827c-9a8e9bee331b","block_type":"box","text":"under the rules for regulated investment companies. Losses in one series of a regulated investment company do not","page_number":175,"box":{"x":69,"y":854,"width":834,"height":11}},{"id":"06840adf-8022-45ec-b850-3ebcbc25c48e","block_type":"box","text":"offset gains in another, and the requirements (other than cer tain organizational requirements) for qualifying for","page_number":175,"box":{"x":69,"y":869,"width":790,"height":11}},{"id":"14a36426-2be9-4820-a610-21b68186a772","block_type":"box","text":"regulated investment company status will be determined at the level of the individual series. In the following","page_number":175,"box":{"x":69,"y":884,"width":771,"height":12}},{"id":"eb5326a5-7bda-43c0-a7d4-8d803f8e47d9","block_type":"box","text":"discussion, the term “Fund” means each individual series, if applicable.","page_number":175,"box":{"x":69,"y":899,"width":512,"height":11}},{"id":"b7377615-8366-4fce-a224-52e01b4f2fc4","block_type":"box","text":"II-129","page_number":175,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"f3890dde-1976-4852-b634-2e85b62ade81","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":175,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"68fd8afc-ee80-4b9f-988e-6e7c6c73e8d0","block_type":"box","text":"The Code requires a regulated investment company to pay a nondeductible 4% excise tax to the extent the","page_number":176,"box":{"x":101,"y":45,"width":759,"height":11}},{"id":"e54b95b5-c536-44ff-9c7b-b760f8ce0d36","block_type":"box","text":"regulated investment company does not distribute, during each calendar year, at least 98% of its ordinary income,","page_number":176,"box":{"x":69,"y":60,"width":813,"height":11}},{"id":"f75e1b66-fc5a-4701-8bb7-10655ee23d2f","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":176,"box":{"x":69,"y":75,"width":830,"height":11}},{"id":"837bd60d-fc04-48df-a941-96a8014315cc","block_type":"box","text":"the regulated investment company’s taxable year ended on October 31, plus cer tain undistributed amounts from the","page_number":176,"box":{"x":68,"y":90,"width":832,"height":11}},{"id":"e6406416-5c3f-45e8-b521-e2bf250e8c14","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":176,"box":{"x":70,"y":105,"width":825,"height":11}},{"id":"9e6cdfd5-a4f9-4dae-8a8f-9dd575729599","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":176,"box":{"x":70,"y":120,"width":810,"height":11}},{"id":"f73a4c80-1b0e-4549-a4c4-21203b1ab599","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":176,"box":{"x":69,"y":135,"width":828,"height":12}},{"id":"7d6c0189-03e9-4bde-9d27-1d09f1d44ff1","block_type":"box","text":"the tax only on the amount by which it does not meet the foregoing distribution requirements.","page_number":176,"box":{"x":68,"y":150,"width":666,"height":12}},{"id":"78c4c96e-1388-4623-aa28-6217009f74e5","block_type":"box","text":"Net capital loss carryforwards may be applied against realized capital gains in each succeeding year, until they","page_number":176,"box":{"x":102,"y":173,"width":790,"height":11}},{"id":"8b2aab0c-f72c-4ba6-b728-ccbf0e55f379","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":176,"box":{"x":69,"y":188,"width":830,"height":12}},{"id":"5c197e29-5e35-471e-b302-12294f9ff89b","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":176,"box":{"x":69,"y":203,"width":770,"height":12}},{"id":"d8063a78-8c14-4bc4-859d-b8fd8fe125e0","block_type":"box","text":"limitation.","page_number":176,"box":{"x":70,"y":219,"width":68,"height":8}},{"id":"6f030a22-7b6a-4eeb-a4b4-c5e56d5e6a82","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":176,"box":{"x":102,"y":241,"width":803,"height":11}},{"id":"f7fadd11-352a-4c6c-aa26-9bf3ebf86d9a","block_type":"box","text":"term capital loss (together referred to as “ordinary income dividends”) are taxable to shareholders as ordinary","page_number":176,"box":{"x":68,"y":256,"width":790,"height":12}},{"id":"c2d2b5ec-9dc3-4539-bc83-119dfc0038e8","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":176,"box":{"x":70,"y":271,"width":815,"height":12}},{"id":"61b41eb5-3a8f-41cb-8c53-b4c7f00a1483","block_type":"box","text":"gains or losses from cer tain transactions in futures and options) (“capital gain dividends”) are taxable to","page_number":176,"box":{"x":68,"y":286,"width":748,"height":12}},{"id":"113df70b-430f-403f-9137-4a8d3c6653b6","block_type":"box","text":"shareholders as long-term capital gains, regardless of the length of time the shareholder has owned Fund shares.","page_number":176,"box":{"x":69,"y":302,"width":811,"height":11}},{"id":"8752aab7-e7da-46ac-a818-7c4f56811107","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":176,"box":{"x":70,"y":317,"width":829,"height":11}},{"id":"6de512a2-c720-4575-a64c-343a332f0495","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":176,"box":{"x":70,"y":332,"width":785,"height":11}},{"id":"062715cc-9213-4cfe-b8ce-f79f3b9ef01d","block_type":"box","text":"applies to non-corporate shareholders. Under these rules, the por tion of ordinary income dividends constituting","page_number":176,"box":{"x":69,"y":347,"width":795,"height":11}},{"id":"8d395fed-85f6-4c9b-bce3-5f913b35d53d","block_type":"box","text":"“qualified dividend income” when paid by a regulated investment company to a non-corporate shareholder may be","page_number":176,"box":{"x":70,"y":362,"width":809,"height":11}},{"id":"cd14df8c-a6f5-4379-b550-e04d84307525","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":176,"box":{"x":68,"y":377,"width":814,"height":12}},{"id":"f7e7557f-46d3-4c14-ab9d-1a0da7456647","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":176,"box":{"x":68,"y":392,"width":822,"height":12}},{"id":"ec77eb79-a425-44f5-ae78-0e2d6217c8b1","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":176,"box":{"x":68,"y":407,"width":751,"height":11}},{"id":"033836cf-ce63-4366-82c0-4bb7b3e64f87","block_type":"box","text":"accumulated dividends with respect to preferred stocks, the shareholder has held the shares on which the dividend","page_number":176,"box":{"x":69,"y":423,"width":823,"height":11}},{"id":"0b44836f-89a1-40d5-848e-6ecdd2903b46","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":176,"box":{"x":68,"y":438,"width":817,"height":11}},{"id":"0b020f19-518b-4369-85d1-19af7c76b6b1","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":176,"box":{"x":68,"y":453,"width":813,"height":11}},{"id":"d28a15b1-7089-44f5-a0ae-1b120b8d0b7c","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":176,"box":{"x":69,"y":468,"width":825,"height":11}},{"id":"d542de57-ad73-48e7-9357-a30e4c3aaad3","block_type":"box","text":"tax purposes and shor t-term capital gains, such distributions will not constitute “qualified dividend income.” In","page_number":176,"box":{"x":68,"y":483,"width":789,"height":11}},{"id":"f89305e7-73f0-4274-b1f9-170d2e6be93d","block_type":"box","text":"addition, distributions that are derived from securities lending income, such as substitute dividend payments, will not","page_number":176,"box":{"x":69,"y":498,"width":836,"height":11}},{"id":"b0b63976-8716-4215-bad3-66655c5bd2d5","block_type":"box","text":"constitute “qualified dividend income.”","page_number":176,"box":{"x":69,"y":513,"width":275,"height":11}},{"id":"2a9688a3-f869-444b-8a16-fdcdd6ab05d2","block_type":"box","text":"A 3.8% Medicare tax is imposed on the net investment income (which includes taxable dividends and redemption","page_number":176,"box":{"x":101,"y":536,"width":806,"height":11}},{"id":"de9942ef-3735-49a7-8766-2bf30c159635","block_type":"box","text":"proceeds) of cer tain individuals, trusts and estates.","page_number":176,"box":{"x":70,"y":551,"width":368,"height":11}},{"id":"ce259237-6986-4a7b-8dfe-4511e6ed928c","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":176,"box":{"x":101,"y":574,"width":772,"height":11}},{"id":"5706f81d-a45f-459d-aa70-a27abd0d7cfb","block_type":"box","text":"subject to the 90% distribution requirement for taxation as a regulated investment company, described above. If a","page_number":176,"box":{"x":69,"y":589,"width":811,"height":11}},{"id":"15a8c816-6a36-4418-947a-e270b83f487d","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":176,"box":{"x":70,"y":604,"width":745,"height":11}},{"id":"31ccb6a7-dd32-4e2e-9bbf-35945453ba63","block_type":"box","text":"undistributed capital gain in a written statement furnished to its shareholders, who will be required to include in","page_number":176,"box":{"x":69,"y":619,"width":795,"height":11}},{"id":"554ca3fb-4cf8-4547-96c9-26b71c6402f1","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":176,"box":{"x":70,"y":634,"width":838,"height":12}},{"id":"979ee567-68b5-4e26-a637-e1e77b69771d","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":176,"box":{"x":69,"y":649,"width":809,"height":12}},{"id":"340691ca-582b-463c-b03d-a33246d2f012","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":176,"box":{"x":69,"y":664,"width":822,"height":12}},{"id":"5d9ba224-036f-4af4-b2af-15cd38cabc9d","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":176,"box":{"x":69,"y":680,"width":838,"height":11}},{"id":"d45809d2-f212-42b5-b87f-f040232b1d35","block_type":"box","text":"against their taxes.","page_number":176,"box":{"x":69,"y":695,"width":135,"height":11}},{"id":"3bfc920a-1a48-4e34-abd6-52ff52214942","block_type":"box","text":"Distributions in excess of a Fund’s current and accumulated earnings and profits will first reduce the adjusted","page_number":176,"box":{"x":102,"y":717,"width":783,"height":12}},{"id":"85c25f20-7f37-4365-adc7-424d6d24c3e4","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":176,"box":{"x":68,"y":732,"width":812,"height":12}},{"id":"9d4dc7ee-874d-4c71-941e-96bb9fb6710c","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":176,"box":{"x":69,"y":748,"width":769,"height":11}},{"id":"eaf877fa-a5b4-4d10-80b4-e5d1f0d7c7b2","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":176,"box":{"x":69,"y":763,"width":805,"height":11}},{"id":"b1cd5baf-2b42-439d-8566-bd5d490dc7a3","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":176,"box":{"x":69,"y":778,"width":824,"height":11}},{"id":"e746b9e0-8040-44ae-83f5-d8d2292f3179","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":176,"box":{"x":68,"y":793,"width":831,"height":11}},{"id":"88c3b9e3-0875-4160-ba65-cee081eccae9","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":176,"box":{"x":68,"y":808,"width":817,"height":11}},{"id":"cce78498-ee4d-4d5e-8154-47b81fba65d5","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":176,"box":{"x":70,"y":823,"width":797,"height":12}},{"id":"d687e47d-aae1-41a5-b71a-57133b291da0","block_type":"box","text":"dividends received by the shareholder.","page_number":176,"box":{"x":69,"y":839,"width":272,"height":10}},{"id":"54c4c229-9318-4246-940a-298fb077e52a","block_type":"box","text":"Ordinary income and capital gain dividends are taxable to shareholders even if they are reinvested in additional","page_number":176,"box":{"x":102,"y":861,"width":792,"height":11}},{"id":"83574460-44c7-45a1-b58a-887cda50d63c","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":176,"box":{"x":69,"y":876,"width":835,"height":11}},{"id":"64b71868-cae9-48b7-aeaa-eb5647f61fc7","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":176,"box":{"x":68,"y":891,"width":809,"height":11}},{"id":"aee31032-91a7-4a9d-b03f-65a3d42c218b","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":176,"box":{"x":68,"y":906,"width":819,"height":11}},{"id":"76a71211-a6d9-4269-a1d4-256085d5d7f6","block_type":"box","text":"II-130","page_number":176,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"08074539-9f9e-410b-8e52-50bf4fd94f10","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":176,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7971cd11-d0fe-4f2f-8e18-7b204357286a","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":177,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"d13c9551-e2fa-457d-b47f-b32e1dbb8835","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":177,"box":{"x":69,"y":60,"width":794,"height":11}},{"id":"99c82e8c-73df-4234-8d8a-f351cfe5262f","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":177,"box":{"x":69,"y":75,"width":804,"height":11}},{"id":"c78489fc-a6e7-46bf-91ab-20633c92e8d7","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":177,"box":{"x":70,"y":90,"width":797,"height":11}},{"id":"0d3022ef-4d8e-4d46-836b-cae5cc51f2bf","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":177,"box":{"x":69,"y":105,"width":810,"height":11}},{"id":"1d06e38a-0a10-4fd6-9d1d-b8801fb1ac79","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":177,"box":{"x":68,"y":120,"width":826,"height":12}},{"id":"29f0a981-9655-44c4-b552-7f2a760b482a","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":177,"box":{"x":70,"y":135,"width":772,"height":12}},{"id":"e5226fa2-7131-4c2d-b5e9-c22ffd54b1d1","block_type":"box","text":"increasing the amount of dividends otherwise includible in the shareholder’s income with respect to the current","page_number":177,"box":{"x":70,"y":150,"width":795,"height":12}},{"id":"aa244175-15f4-4ec5-93ea-b153e8d4531c","block_type":"box","text":"taxable year.","page_number":177,"box":{"x":68,"y":166,"width":89,"height":11}},{"id":"024c86c9-bd29-4dc0-8c6e-f8eb5e58114a","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":177,"box":{"x":102,"y":188,"width":733,"height":12}},{"id":"6138721c-0214-4e95-aa88-3d9df5cb255b","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":177,"box":{"x":69,"y":203,"width":832,"height":11}},{"id":"fd8f0ba3-28db-47a7-b9b5-7a0fdf352da1","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":177,"box":{"x":69,"y":218,"width":809,"height":12}},{"id":"a16cc101-4cbf-4f99-a43b-fd2eaa53d131","block_type":"box","text":"holding period for the conver ted Investor C Shares.","page_number":177,"box":{"x":69,"y":234,"width":362,"height":11}},{"id":"ed7ab15f-d835-4ccd-8486-173f5f4da1ef","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":177,"box":{"x":102,"y":256,"width":795,"height":12}},{"id":"40293137-7ed2-4134-9360-0207c3c6de81","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":177,"box":{"x":69,"y":271,"width":824,"height":12}},{"id":"dc3ed6f4-7770-49f3-b2fd-6010b31f0865","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":177,"box":{"x":69,"y":287,"width":797,"height":11}},{"id":"fca83705-bb93-4db2-8057-253df4ce6206","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":177,"box":{"x":69,"y":302,"width":791,"height":11}},{"id":"f2380605-55db-4ec5-910e-1573bf93d3b3","block_type":"box","text":"privilege. Instead, such sales charge will be treated as an amount paid for the new shares.","page_number":177,"box":{"x":70,"y":317,"width":646,"height":11}},{"id":"47df182a-edf8-44e6-8d7c-508f74a7593b","block_type":"box","text":"A sale, redemption, or exchange of Fund shares may give rise to a gain or loss. In general, any gain or loss","page_number":177,"box":{"x":101,"y":339,"width":762,"height":12}},{"id":"f0d9825e-f9e6-4435-bcd4-7fe4c3a2d77a","block_type":"box","text":"realized upon a taxable disposition of shares of a Fund will be treated as long-term capital gain or loss if such shares","page_number":177,"box":{"x":69,"y":355,"width":836,"height":11}},{"id":"d97b63f9-1f49-4893-820b-82b99e3e121d","block_type":"box","text":"have been held for more than 12 months. Otherwise, the gain or loss on the taxable disposition of Fund shares will","page_number":177,"box":{"x":69,"y":370,"width":822,"height":11}},{"id":"9649f83c-baf9-4499-963d-05b6bdc03a06","block_type":"box","text":"generally be treated as shor t-term capital gain or loss. Any loss realized upon a taxable disposition of shares held for","page_number":177,"box":{"x":68,"y":385,"width":838,"height":11}},{"id":"d3ebdcde-8722-40b4-9c1b-a55f7fcc6ad2","block_type":"box","text":"six months or less will be treated as long-term capital loss, rather than shor t-term capital loss, to the extent of any","page_number":177,"box":{"x":69,"y":400,"width":820,"height":11}},{"id":"4a7dbcdb-3e39-4a2c-b4a1-0f7d0972a48b","block_type":"box","text":"amounts treated as distributions to the shareholder of long-term capital gain (including any amounts credited to the","page_number":177,"box":{"x":69,"y":415,"width":823,"height":11}},{"id":"98189a91-d487-4e46-b155-934d45653c50","block_type":"box","text":"shareholder as undistributed capital gains). Shareholders that hold shares of a Fund through a qualified tax-exempt","page_number":177,"box":{"x":69,"y":430,"width":822,"height":11}},{"id":"a0989aeb-4331-4ae8-9041-e048d546ceb7","block_type":"box","text":"plan described in section 401(a) of the Internal Revenue Code should see the Fund’s Prospectus for a discussion of","page_number":177,"box":{"x":70,"y":445,"width":829,"height":11}},{"id":"f80ccca2-042a-4933-b973-fcec8ef66dcf","block_type":"box","text":"special tax rules that apply to their investments.","page_number":177,"box":{"x":69,"y":461,"width":343,"height":11}},{"id":"9bacfce5-9afd-4bf8-ae11-dece7e622e5c","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":177,"box":{"x":101,"y":483,"width":807,"height":11}},{"id":"bd012a13-1373-4587-beb7-07fab1d7a67a","block_type":"box","text":"are acquired (whether through the automatic reinvestment of dividends or otherwise) within a 61-day period beginning","page_number":177,"box":{"x":69,"y":498,"width":839,"height":11}},{"id":"a6e1a3e0-f1dc-4348-8179-cd6a1ac5be77","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":177,"box":{"x":69,"y":513,"width":799,"height":12}},{"id":"fd98e084-a17c-425c-9056-649476a35c5b","block_type":"box","text":"basis of the shares acquired will be adjusted to reflect the disallowed loss.","page_number":177,"box":{"x":69,"y":528,"width":534,"height":12}},{"id":"d25bfd92-1e82-4ac8-a188-52824e89b8d0","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":177,"box":{"x":101,"y":551,"width":792,"height":11}},{"id":"6b5e315c-1cca-4a71-bd00-5a52e002b38d","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":177,"box":{"x":69,"y":566,"width":800,"height":11}},{"id":"0d53c674-244b-407b-921f-cc6cdf693962","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":177,"box":{"x":70,"y":581,"width":828,"height":12}},{"id":"48128bb0-9e74-4a53-a4ca-aa4058879b93","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":177,"box":{"x":70,"y":596,"width":824,"height":12}},{"id":"b7945d7a-f14a-4473-967f-acab290de5e2","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":177,"box":{"x":69,"y":612,"width":816,"height":11}},{"id":"d40c7e98-94e9-4992-8d61-d6ea36d06498","block_type":"box","text":"different IRS-accepted method offered by the Fund. These requirements, however, will not apply for investments","page_number":177,"box":{"x":69,"y":627,"width":797,"height":11}},{"id":"4a965e3c-a8a1-46f1-b06e-bd4ff270371f","block_type":"box","text":"through an IRA or other tax-advantaged account. Shareholders should consult their tax advisors to determine the best","page_number":177,"box":{"x":68,"y":642,"width":840,"height":11}},{"id":"e5c5be47-cd79-4305-8fe9-ece942c5911a","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":177,"box":{"x":69,"y":657,"width":788,"height":11}},{"id":"3fcf743d-d217-44b0-8507-121673185b55","block_type":"box","text":"requirements apply to them. For shares of a Fund acquired before January 1, 2012, these requirements will not","page_number":177,"box":{"x":69,"y":672,"width":797,"height":11}},{"id":"d2f3f2d3-f96d-477c-9b4d-9cff2835b2a5","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":177,"box":{"x":69,"y":687,"width":821,"height":11}},{"id":"f502c796-b0a0-4254-a063-ea4a41d3e937","block_type":"box","text":"redemption of such shares.","page_number":177,"box":{"x":69,"y":702,"width":195,"height":11}},{"id":"f11a3f80-7e23-4f75-8161-f113aac15596","block_type":"box","text":"The Manager may determine it is in the best interest of a Fund to distribute por tfolio securities in kind for the","page_number":177,"box":{"x":101,"y":725,"width":780,"height":11}},{"id":"bfdcb382-98bd-42d1-aa64-12de3b3f0de9","block_type":"box","text":"purposes of por tfolio management when meeting redemption requests. When the Manager determines to do so, a","page_number":177,"box":{"x":70,"y":740,"width":814,"height":11}},{"id":"9d95e165-021d-472e-81d0-4567cfdce0b9","block_type":"box","text":"Fund generally will not recognize taxable gains in respect of the por tfolio securities it distributes to the redeeming","page_number":177,"box":{"x":70,"y":755,"width":810,"height":11}},{"id":"c071ae91-0087-4027-a3a3-6b5d7ee64718","block_type":"box","text":"shareholder, which may reduce the amount of taxable gains the Fund would otherwise be required to distribute.","page_number":177,"box":{"x":69,"y":770,"width":793,"height":12}},{"id":"23dabed9-b2fc-4b3d-9baf-0e1284009c17","block_type":"box","text":"While a Fund may engage in redemptions in kind that have the effect of reducing or eliminating distributable","page_number":177,"box":{"x":101,"y":793,"width":770,"height":11}},{"id":"3df42d66-36ae-42ca-b0a7-4eb516568dfc","block_type":"box","text":"capital gains as described above, the Funds do not employ a systematic approach to tax management. There is no","page_number":177,"box":{"x":69,"y":808,"width":817,"height":11}},{"id":"e95ff7e0-bc46-4e20-99b5-a4f52202ef1b","block_type":"box","text":"assurance that a Fund can or will be successful in effecting any redemptions in kind and shareholders should expect","page_number":177,"box":{"x":69,"y":823,"width":833,"height":12}},{"id":"fbaa6ca7-142f-4218-8782-6ce87e6ad219","block_type":"box","text":"that each Fund will distribute capital gains.","page_number":177,"box":{"x":68,"y":839,"width":305,"height":11}},{"id":"b9bd94df-900b-40d4-89d1-098405b85a85","block_type":"box","text":"Cer tain Funds may invest in derivative contracts such as options, futures contracts, forward contracts and swap","page_number":177,"box":{"x":102,"y":861,"width":799,"height":11}},{"id":"f731ceac-03ee-4893-aec9-01524452d424","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":177,"box":{"x":69,"y":876,"width":791,"height":11}},{"id":"8859d8cf-d4e1-45a7-9ebc-95c3ef94f429","block_type":"box","text":"investment in the underlying security and may adversely affect the timing, character and amount of income the Fund","page_number":177,"box":{"x":70,"y":891,"width":826,"height":12}},{"id":"e59e44cb-4eaa-458a-bbaf-2c09a3911d3b","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":177,"box":{"x":69,"y":906,"width":803,"height":12}},{"id":"e0effca5-2f2f-4672-a333-5e68c73b9ebd","block_type":"box","text":"II-131","page_number":177,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"8786dd3b-cd92-4643-9650-be8ab14b3971","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":177,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b52c744d-1167-4b1e-9252-61522247bbb9","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":178,"box":{"x":70,"y":45,"width":825,"height":11}},{"id":"3479795e-2c6b-4054-bbde-1ac2e333cd4c","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":178,"box":{"x":69,"y":60,"width":829,"height":11}},{"id":"3f6142fd-d59e-4bbb-a6f7-16b8780ff681","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":178,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"64c8e6bf-0614-4faa-8cd4-76375ece920e","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":178,"box":{"x":69,"y":90,"width":808,"height":11}},{"id":"72dfb24e-3ade-494c-8d59-efb92c7fbd2a","block_type":"box","text":"distributed to meet distribution requirements and avoid the excise tax. In addition, the tax treatment of cer tain","page_number":178,"box":{"x":69,"y":105,"width":787,"height":11}},{"id":"4e518f21-453b-4f16-949b-4f7876ebbced","block_type":"box","text":"derivative contracts, such as swap agreements, is unsettled and may be subject to future legislation, regulation or","page_number":178,"box":{"x":69,"y":120,"width":816,"height":12}},{"id":"d007123f-83de-4831-b5fd-3b8f23115436","block_type":"box","text":"administrative pronouncements issued by the IRS. If such future guidance limits the Fund’s ability to use derivatives,","page_number":178,"box":{"x":69,"y":135,"width":832,"height":12}},{"id":"8016bbe7-26ca-4956-9a1d-1a185944a7c9","block_type":"box","text":"the Fund may have to find other ways of achieving its investment objectives.","page_number":178,"box":{"x":68,"y":150,"width":542,"height":12}},{"id":"d0e68515-8e51-4014-af56-8a541b1364a1","block_type":"box","text":"Cer tain swap agreements, including exchange-traded swap agreements, are treated as notional principal","page_number":178,"box":{"x":102,"y":173,"width":744,"height":11}},{"id":"9731f637-189c-4cac-8f61-2306daf8ebd5","block_type":"box","text":"contracts rather than as section 1256 contracts. This can affect the type of income earned by such swap","page_number":178,"box":{"x":69,"y":188,"width":751,"height":11}},{"id":"a1df21a8-d8be-49f1-9792-067835edf689","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":178,"box":{"x":69,"y":203,"width":819,"height":12}},{"id":"fe65eea3-7d31-47ad-9d64-a7cbd7baf2d3","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":178,"box":{"x":69,"y":219,"width":823,"height":11}},{"id":"f3f04cc7-17f8-42ed-9b74-1a52eff3cdb0","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":178,"box":{"x":68,"y":234,"width":823,"height":11}},{"id":"72c7a883-eda3-4058-81b0-eb7c6f93d774","block_type":"box","text":"which may be taxable at more favorable rates than ordinary income. Proposed regulations interpret what types of","page_number":178,"box":{"x":68,"y":249,"width":807,"height":11}},{"id":"7709da5c-acde-45b6-a452-c8d711105ea1","block_type":"box","text":"swap agreements are to be treated as notional principal contracts rather than as section 1256 contracts. When","page_number":178,"box":{"x":69,"y":264,"width":797,"height":11}},{"id":"98e70cb3-a361-486e-9c86-2d283b5a289b","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":178,"box":{"x":68,"y":279,"width":838,"height":11}},{"id":"8e9355bd-df9f-4a9e-98fe-c50cc123b63c","block_type":"box","text":"of the distributions made to shareholders as ordinary income and less as long-term capital gains.","page_number":178,"box":{"x":69,"y":294,"width":695,"height":11}},{"id":"539df51f-7bbf-475b-b205-a2f10be23255","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":178,"box":{"x":102,"y":317,"width":768,"height":11}},{"id":"63bd0050-ab51-48b8-88c4-84614d655d86","block_type":"box","text":"discount or provide for deferred interest. Even though a Fund receives no actual interest payments on these","page_number":178,"box":{"x":69,"y":332,"width":769,"height":11}},{"id":"0fadddef-ec2c-43ee-b1bf-c3fed5bca5e5","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":178,"box":{"x":69,"y":347,"width":822,"height":11}},{"id":"2e577062-9312-460a-9955-acb9af50f3d8","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":178,"box":{"x":70,"y":362,"width":819,"height":11}},{"id":"eef606c6-09b5-4d7a-b31c-e7cf90cc3db1","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":178,"box":{"x":68,"y":377,"width":818,"height":12}},{"id":"1459c725-6aaf-4a26-a833-0edf752d59e2","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":178,"box":{"x":70,"y":392,"width":830,"height":12}},{"id":"b21b2934-8dff-40a7-ac85-fc84923c01a7","block_type":"box","text":"in order to satisfy its distribution requirements. In addition, a Fund’s investment in foreign currencies or foreign","page_number":178,"box":{"x":70,"y":407,"width":792,"height":12}},{"id":"c59b7532-1c40-47ca-b1fe-608e9da21573","block_type":"box","text":"currency denominated or referenced debt securities, cer tain asset-backed securities and contingent payment and","page_number":178,"box":{"x":69,"y":423,"width":808,"height":11}},{"id":"302b12af-bfce-4dcd-ae74-16188a820879","block_type":"box","text":"inflation-indexed debt instruments also may increase or accelerate the Fund’s recognition of income, including the","page_number":178,"box":{"x":70,"y":438,"width":812,"height":11}},{"id":"9113b4d2-717d-470c-8a6d-70d685af3f8a","block_type":"box","text":"recognition of taxable income in excess of cash generated by such investments. Any transaction by the Fund in","page_number":178,"box":{"x":69,"y":453,"width":789,"height":11}},{"id":"d8354b02-ae83-417a-9fb1-f44c8bb02884","block_type":"box","text":"foreign currencies, foreign currency-denominated debt obligations or cer tain foreign currency options, futures","page_number":178,"box":{"x":68,"y":468,"width":777,"height":11}},{"id":"74cf087b-73c9-439c-9e39-f70e042a7420","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":178,"box":{"x":69,"y":483,"width":810,"height":11}},{"id":"eec16c8b-771a-42fa-b0e1-722b19994279","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":178,"box":{"x":70,"y":498,"width":801,"height":11}},{"id":"04ad6125-c08e-4215-802a-0dc8d268e2a8","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":178,"box":{"x":69,"y":513,"width":762,"height":12}},{"id":"cabe0098-ec96-46bf-91f0-3f5aa540515d","block_type":"box","text":"potentially require the recharacterization of prior ordinary income distributions. Such ordinary income treatment may","page_number":178,"box":{"x":70,"y":528,"width":827,"height":12}},{"id":"79b5aa63-f33d-48cf-8b25-f1c7a90b5693","block_type":"box","text":"accelerate Fund distributions to shareholders and increase the distributions taxed to shareholders as ordinary","page_number":178,"box":{"x":69,"y":544,"width":787,"height":11}},{"id":"8e0b8854-662c-46c4-b139-5bd6cdc3d08b","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":178,"box":{"x":70,"y":559,"width":822,"height":11}},{"id":"86e2907d-4c43-49cd-bec2-f78937af5a0c","block_type":"box","text":"in subsequent taxable years.","page_number":178,"box":{"x":70,"y":574,"width":203,"height":11}},{"id":"b948e6bf-0940-44e6-a42b-323fac0fa5d5","block_type":"box","text":"Ordinary income dividends paid to shareholders who are nonresident aliens or foreign entities (other than pass","page_number":178,"box":{"x":102,"y":596,"width":795,"height":12}},{"id":"f0923a11-3dbc-4eed-b7c2-e95c5613c67e","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":178,"box":{"x":68,"y":612,"width":816,"height":11}},{"id":"ecd59a11-9d4d-4c28-9513-827da48b1592","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":178,"box":{"x":69,"y":627,"width":835,"height":11}},{"id":"dd307020-31e2-4401-9a66-d1c055b597d2","block_type":"box","text":"withholding exemption is provided under applicable treaty law. Capital gain dividends paid to shareholders that are","page_number":178,"box":{"x":68,"y":642,"width":815,"height":11}},{"id":"d99ab17c-89a9-4c4b-9d41-d2c4ea439ae6","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":178,"box":{"x":69,"y":657,"width":816,"height":11}},{"id":"2be1efd5-6d20-4e41-b60f-e0c404fe6df1","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":178,"box":{"x":69,"y":672,"width":840,"height":11}},{"id":"e2f1a673-88b1-4e80-aa94-f80e61e616eb","block_type":"box","text":"company from shor t-term capital gains and qualified net interest income (including income from original issue","page_number":178,"box":{"x":69,"y":687,"width":781,"height":11}},{"id":"d23e7e37-f02c-4b5e-8754-c9fad4b98885","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":178,"box":{"x":69,"y":702,"width":824,"height":12}},{"id":"4c3f5ef6-96e7-4211-86c4-735b6bc37b0c","block_type":"box","text":"extent properly repor ted as “shor t-term capital gain dividends” or “interest-related dividends”, respectively, generally","page_number":178,"box":{"x":69,"y":718,"width":832,"height":11}},{"id":"f9e9c2cf-5e0e-4f01-9354-5f51f7c677fa","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":178,"box":{"x":68,"y":733,"width":808,"height":11}},{"id":"2a752ca1-8949-441d-a101-1bc45cd85764","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":178,"box":{"x":69,"y":748,"width":826,"height":11}},{"id":"ba036b3c-3b86-49e5-ad78-7435001c2f2e","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":178,"box":{"x":69,"y":763,"width":830,"height":11}},{"id":"09950197-b1bc-4356-848e-dd943e18e89c","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":178,"box":{"x":69,"y":778,"width":811,"height":11}},{"id":"d71d369c-9af4-47c0-8cfb-28f67f230327","block_type":"box","text":"this exemption from withholding, a foreign shareholder must comply with applicable cer tification requirements","page_number":178,"box":{"x":68,"y":793,"width":784,"height":11}},{"id":"d9f4ad60-808a-4dbd-9c8c-e16968bd5e34","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":178,"box":{"x":69,"y":808,"width":828,"height":11}},{"id":"31043ac4-5696-43f9-be97-44ba11433ca2","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":178,"box":{"x":70,"y":823,"width":839,"height":12}},{"id":"cb04e56a-a26e-4ca8-b6d7-9ab1fdc203c4","block_type":"box","text":"payment as an interest-related or shor t-term capital gain dividend. Foreign shareholders should contact their","page_number":178,"box":{"x":70,"y":839,"width":772,"height":11}},{"id":"f7bd1b59-ca15-40ca-948d-53005f83d3b0","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":178,"box":{"x":70,"y":853,"width":791,"height":11}},{"id":"00629d82-5ee7-4604-91ce-c821c98e0989","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":178,"box":{"x":70,"y":869,"width":787,"height":11}},{"id":"2a49e09d-333f-4173-a465-53c9ef72276e","block_type":"box","text":"dividends under these rules.","page_number":178,"box":{"x":69,"y":884,"width":201,"height":9}},{"id":"b3aa3b72-e244-4322-946e-3ce120ddd71c","block_type":"box","text":"II-132","page_number":178,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"ac14b63e-bbdf-4eb0-a32c-f9a2d901475d","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":178,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ca0e247f-019a-4a25-96fb-1fd09d3a56d9","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":179,"box":{"x":102,"y":45,"width":747,"height":11}},{"id":"81864b4f-e792-46ae-9a7d-b224d31a5e70","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":179,"box":{"x":70,"y":60,"width":838,"height":11}},{"id":"c7335aca-0f16-4365-be38-9a0a5240f483","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":179,"box":{"x":68,"y":75,"width":829,"height":11}},{"id":"5b970aae-8031-48d2-a844-33066080331c","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":179,"box":{"x":69,"y":90,"width":817,"height":11}},{"id":"8bd7773c-187d-4e53-8405-8e7d4bd14164","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":179,"box":{"x":69,"y":105,"width":786,"height":11}},{"id":"d86b5a8c-a247-4c52-a927-9e019772de5d","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":179,"box":{"x":69,"y":120,"width":800,"height":12}},{"id":"d7f9f6fa-6b8c-4fde-a8f6-5d2d2299f024","block_type":"box","text":"period ending on the date of the distributions), generally must be treated by such foreign shareholders as income","page_number":179,"box":{"x":70,"y":135,"width":807,"height":12}},{"id":"907331a7-7336-4a3d-9467-d04f0ad79053","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":179,"box":{"x":69,"y":150,"width":772,"height":12}},{"id":"857cda08-3608-478e-a948-e0fbf4b31381","block_type":"box","text":"graduated rates applicable to U.S. shareholders, except for distributions to foreign shareholders that held no more","page_number":179,"box":{"x":68,"y":166,"width":818,"height":11}},{"id":"2efe2519-16d4-4731-8fce-36668f5ea165","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":179,"box":{"x":68,"y":181,"width":820,"height":11}},{"id":"3c3a54e8-2159-439e-8b4d-c459670cced2","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":179,"box":{"x":69,"y":196,"width":833,"height":11}},{"id":"63d57837-4def-4ad4-a95f-4c72056f37ef","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":179,"box":{"x":69,"y":211,"width":823,"height":11}},{"id":"05f72b82-8b2b-4865-ae5b-f1f3c990070b","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":179,"box":{"x":69,"y":226,"width":774,"height":11}},{"id":"515dc0d1-cc2e-4ffe-95e2-1c9189fce471","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":179,"box":{"x":69,"y":241,"width":839,"height":11}},{"id":"c5dd4373-4341-48f9-aba8-5b31fe1ee4aa","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":179,"box":{"x":69,"y":256,"width":822,"height":12}},{"id":"adbac7c8-b3fb-4a2c-ba79-29fdcb036f86","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":179,"box":{"x":70,"y":271,"width":827,"height":12}},{"id":"adb9886b-13d2-499e-9814-8400e30e77ed","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":179,"box":{"x":69,"y":286,"width":823,"height":12}},{"id":"9afbe175-8bf5-4be8-9360-3dfb627fd357","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":179,"box":{"x":68,"y":302,"width":827,"height":11}},{"id":"e7251d43-6d3a-401f-9976-1ba55e635202","block_type":"box","text":"at all times during the five-year period ending on the date of the sale or redemption.","page_number":179,"box":{"x":69,"y":317,"width":596,"height":11}},{"id":"d83431ab-4e3b-4c84-af02-14cd1574ec16","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":179,"box":{"x":102,"y":339,"width":802,"height":12}},{"id":"e4d61f18-01bc-4458-a6a7-2facdba7388e","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":179,"box":{"x":69,"y":355,"width":827,"height":11}},{"id":"578a882f-4c4c-4760-8381-db90266a7c71","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":179,"box":{"x":69,"y":370,"width":804,"height":11}},{"id":"1154fd11-69ff-452c-80c1-cc0701ea6714","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":179,"box":{"x":69,"y":385,"width":824,"height":11}},{"id":"39151829-4b30-4528-a8f0-13ea92594782","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":179,"box":{"x":68,"y":400,"width":801,"height":11}},{"id":"d0ca84fb-6eb0-4c0c-8321-7cd3afe6c1aa","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":179,"box":{"x":69,"y":415,"width":803,"height":11}},{"id":"e51c57a1-df03-499d-9312-8f436a44fd14","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":179,"box":{"x":69,"y":430,"width":785,"height":11}},{"id":"ff85a275-bdf7-42c0-ae6c-e471e885e40d","block_type":"box","text":"ownership percentage of the Fund during the five-year period ending on the date of distribution.","page_number":179,"box":{"x":69,"y":445,"width":676,"height":12}},{"id":"a071506b-1aea-421b-8094-288e7fc75a13","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":179,"box":{"x":101,"y":468,"width":798,"height":11}},{"id":"034edbcf-4bfc-43bb-8f6a-02e44724a675","block_type":"box","text":"and payment obligations discussed above through the sale and repurchase of Fund shares.","page_number":179,"box":{"x":69,"y":483,"width":651,"height":11}},{"id":"197c806a-b296-4bbb-877d-15fa5b9dbd00","block_type":"box","text":"Shareholders that are nonresident aliens or foreign entities are urged to consult their own tax advisors","page_number":179,"box":{"x":102,"y":506,"width":731,"height":11}},{"id":"ddc6d762-1da6-42df-8d5a-dca71f088c7e","block_type":"box","text":"concerning the par ticular tax consequences to them of an investment in a Fund.","page_number":179,"box":{"x":69,"y":521,"width":570,"height":11}},{"id":"98cdc0fd-1950-4520-8b23-001bd66e11da","block_type":"box","text":"Separately, a 30% withholding tax is currently imposed on U.S.-source dividends, interest and other income","page_number":179,"box":{"x":102,"y":544,"width":763,"height":11}},{"id":"a6a67d2f-8b13-4ad9-b3c9-3f7d5d00846b","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":179,"box":{"x":70,"y":559,"width":820,"height":11}},{"id":"bdc2228b-5dbe-430d-9c32-0959979704f2","block_type":"box","text":"avoid withholding, foreign financial institutions and investment funds will generally either need to (a) collect and","page_number":179,"box":{"x":69,"y":574,"width":794,"height":11}},{"id":"fc00743d-d318-4415-815c-dde169cfc87a","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":179,"box":{"x":69,"y":589,"width":794,"height":11}},{"id":"c23c6fac-27ee-4d11-8c18-4ad95770cf39","block_type":"box","text":"diligence procedures for identifying U.S. accounts and withhold tax on cer tain payments made to noncomplying","page_number":179,"box":{"x":69,"y":604,"width":791,"height":11}},{"id":"e9af9cb5-7b53-492b-af67-ac9549f95635","block_type":"box","text":"foreign entities and account holders or (b) if an intergovernmental agreement is entered into and implementing","page_number":179,"box":{"x":68,"y":619,"width":791,"height":11}},{"id":"af3b9445-01ef-40f6-899b-8e29120d9038","block_type":"box","text":"legislation is adopted, comply with the agreement and legislation. Other foreign entities will generally either need to","page_number":179,"box":{"x":70,"y":634,"width":822,"height":12}},{"id":"c39e503a-b066-40e2-ad3a-686fa3cf46f8","block_type":"box","text":"provide detailed information identifying each substantial U.S. owner or cer tify there are no such owners.","page_number":179,"box":{"x":70,"y":649,"width":739,"height":12}},{"id":"d561c5f5-55b4-40a0-872f-1b0c719377fc","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":179,"box":{"x":102,"y":672,"width":786,"height":11}},{"id":"cbf749de-e491-4f45-ac57-81d108d1bd33","block_type":"box","text":"income dividends, capital gain dividends and redemption payments (“backup withholding”). Generally, shareholders","page_number":179,"box":{"x":70,"y":687,"width":820,"height":11}},{"id":"1c749e05-a0e0-47aa-9e2e-e0c4fbfba211","block_type":"box","text":"subject to backup withholding will be non-corporate shareholders for whom no cer tified taxpayer identification number","page_number":179,"box":{"x":69,"y":702,"width":837,"height":12}},{"id":"123d0631-fb4f-44a3-b744-9561c4847418","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":179,"box":{"x":70,"y":717,"width":821,"height":12}},{"id":"d3f80ff8-597e-46a6-b3c3-42883f844d2b","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":179,"box":{"x":69,"y":732,"width":819,"height":12}},{"id":"3f0b83b7-ef24-4e9a-a7dc-07b0e8bdcefe","block_type":"box","text":"otherwise subject to backup withholding. Backup withholding is not an additional tax. Any amount withheld generally","page_number":179,"box":{"x":69,"y":748,"width":826,"height":11}},{"id":"bb6568e3-dd18-45fc-b9f7-a95da7f168f0","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":179,"box":{"x":69,"y":763,"width":802,"height":11}},{"id":"d1497e65-39cc-44e8-9cfe-db2117356724","block_type":"box","text":"required information is timely forwarded to the IRS.","page_number":179,"box":{"x":69,"y":778,"width":364,"height":11}},{"id":"a9c7809e-cb2d-4519-a5f1-62c552168601","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":179,"box":{"x":102,"y":800,"width":774,"height":12}},{"id":"f0c33c99-cd5a-4b3d-b245-4dceb3286b79","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":179,"box":{"x":68,"y":815,"width":787,"height":12}},{"id":"a010f43f-8d40-45f4-8de1-84867c30afbc","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":179,"box":{"x":68,"y":830,"width":835,"height":12}},{"id":"db1d3928-16f3-4b1a-be43-812b9f2db585","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":179,"box":{"x":68,"y":846,"width":809,"height":11}},{"id":"0ab53f6b-f911-4a90-ad8a-4293b9b61021","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":179,"box":{"x":69,"y":861,"width":817,"height":11}},{"id":"e4d554e0-ba52-44d8-a189-15b493873a38","block_type":"box","text":"determination of whether the taxpayer’s treatment of the loss is proper. Shareholders should consult their tax","page_number":179,"box":{"x":69,"y":876,"width":783,"height":11}},{"id":"091b5211-a292-40c2-bee7-15d438120d3c","block_type":"box","text":"advisors to determine the applicability of these regulations in light of their individual circumstances.","page_number":179,"box":{"x":69,"y":891,"width":710,"height":12}},{"id":"69d0c61e-c458-49ed-9dc0-9264edebb95b","block_type":"box","text":"II-133","page_number":179,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"bdfcb294-f86d-469e-b639-db5b6cbd6916","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":179,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"cbad3c6d-8656-4939-969f-5ce8e97ce49c","block_type":"box","text":"Cer tain types of income received by a Fund from REITs, real estate mor tgage investment conduits, taxable","page_number":180,"box":{"x":102,"y":45,"width":758,"height":11}},{"id":"8ff035cf-be57-483c-85d8-d18cf216a2d9","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":180,"box":{"x":69,"y":60,"width":782,"height":11}},{"id":"ba78dc3b-b76e-4be2-b1f2-111e900c975b","block_type":"box","text":"inclusion income.” To Fund shareholders, such excess inclusion income may: (i) constitute taxable income, as","page_number":180,"box":{"x":70,"y":75,"width":783,"height":11}},{"id":"685668f6-f5e3-4816-a113-1cb7f5265265","block_type":"box","text":"unrelated business taxable income (“UBTI”) for those shareholders who would otherwise be tax-exempt such as","page_number":180,"box":{"x":69,"y":90,"width":797,"height":11}},{"id":"9afd24ba-273d-4e3b-b912-bd803366ee1d","block_type":"box","text":"individual retirement accounts, 401(k) accounts, Keogh plans, pension plans and cer tain charitable entities; (ii) not","page_number":180,"box":{"x":70,"y":105,"width":822,"height":11}},{"id":"c081e319-6357-486a-9842-b113685c5259","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":180,"box":{"x":69,"y":120,"width":836,"height":12}},{"id":"9c9aa0e5-224a-430e-bc9f-edb9b280345f","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":180,"box":{"x":70,"y":135,"width":826,"height":11}},{"id":"0abf9628-40cd-4996-a631-4c3de86cdb2c","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":180,"box":{"x":69,"y":150,"width":808,"height":12}},{"id":"44c64b2f-05a6-42dd-8970-62c22d1bba69","block_type":"box","text":"expected to generate excess inclusion income, but the Fund may not always be successful in doing so. Because","page_number":180,"box":{"x":69,"y":166,"width":800,"height":11}},{"id":"a7fab866-5d5e-4514-9509-21d864e341dd","block_type":"box","text":"information about a REIT’s investments may be inadequate or inaccurate, or because a REIT may change its","page_number":180,"box":{"x":70,"y":181,"width":770,"height":11}},{"id":"91895f07-f9a1-4712-be3e-3247e70211b5","block_type":"box","text":"investment program, the Fund may not be successful in avoiding the consequences described above. Avoidance of","page_number":180,"box":{"x":70,"y":196,"width":816,"height":11}},{"id":"003062d6-8329-4809-bac6-87d6e7637583","block_type":"box","text":"investments in REITs that generate excess inclusion income may require the Fund to forego otherwise attractive","page_number":180,"box":{"x":70,"y":211,"width":796,"height":11}},{"id":"fcf2a9ea-7b2f-4f71-9f59-a31e8073d64c","block_type":"box","text":"investment oppor tunities.","page_number":180,"box":{"x":70,"y":226,"width":180,"height":11}},{"id":"9b0d0e1b-fc0d-4714-bbe5-e280271bc7e0","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":180,"box":{"x":102,"y":249,"width":801,"height":11}},{"id":"16b8da5a-0432-4e29-84dc-97afdadc897e","block_type":"box","text":"imposed by foreign countries. Tax conventions between cer tain foreign countries and the United States may reduce or","page_number":180,"box":{"x":70,"y":264,"width":839,"height":11}},{"id":"5cd2de38-fdcb-44cd-a8be-4b66c42adf72","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":180,"box":{"x":69,"y":279,"width":840,"height":11}},{"id":"01350a3e-50a5-4353-a416-352a858f6c51","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":180,"box":{"x":68,"y":294,"width":837,"height":11}},{"id":"22aed689-69a4-4b2a-9c46-b886f0938fd3","block_type":"box","text":"Fund, subject to cer tain requirements and limitations contained in the Code. For example, cer tain retirement","page_number":180,"box":{"x":70,"y":309,"width":774,"height":11}},{"id":"2d0e83cb-e9ca-4184-92a9-08cbbe969c44","block_type":"box","text":"accounts and cer tain tax-exempt organizations cannot claim foreign tax credits on investments in foreign securities","page_number":180,"box":{"x":69,"y":324,"width":820,"height":12}},{"id":"c67a9100-fd7a-46b5-b911-3953d866dd09","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":180,"box":{"x":69,"y":339,"width":795,"height":12}},{"id":"07e7974d-e687-407a-b842-5466b43245b0","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":180,"box":{"x":69,"y":355,"width":755,"height":11}},{"id":"d442cf89-1d58-4dd5-8ab8-985770b1250a","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":180,"box":{"x":69,"y":370,"width":811,"height":11}},{"id":"da6be8d4-9d70-4889-87bb-9d6e8205ca29","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":180,"box":{"x":69,"y":385,"width":839,"height":11}},{"id":"f5989f26-023f-4d61-a572-6d6da6ae8f3c","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":180,"box":{"x":68,"y":400,"width":812,"height":11}},{"id":"d733ce75-38f2-4942-a8f2-76e3b708de12","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":180,"box":{"x":69,"y":415,"width":829,"height":11}},{"id":"16db0e3d-ba3e-437f-aee4-5dde0cb12329","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":180,"box":{"x":68,"y":430,"width":827,"height":11}},{"id":"40a786e8-13b4-47ab-aee2-9e45f385169c","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":180,"box":{"x":70,"y":445,"width":829,"height":12}},{"id":"da98fcfd-28df-4785-8517-1ca6eba24dd7","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":180,"box":{"x":68,"y":460,"width":825,"height":12}},{"id":"8092b819-ab99-4550-a8b9-1fa9030fd897","block_type":"box","text":"deduct such propor tionate shares in computing their taxable incomes or, alternatively, use them as foreign tax","page_number":180,"box":{"x":69,"y":475,"width":788,"height":12}},{"id":"5dd7da54-668a-4405-8163-609d1420a8cf","block_type":"box","text":"credits against their U.S. income taxes. No deductions for foreign taxes, however, may be claimed by noncorporate","page_number":180,"box":{"x":69,"y":491,"width":818,"height":11}},{"id":"0a55e77c-8d11-4ce4-94c6-2d45b1f45765","block_type":"box","text":"shareholders who do not itemize deductions. A shareholder that is a nonresident alien individual or a foreign","page_number":180,"box":{"x":69,"y":506,"width":773,"height":11}},{"id":"7cdc6d5e-d5c8-479d-acd1-bc35c5cbfc25","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":180,"box":{"x":69,"y":521,"width":817,"height":11}},{"id":"a534d60c-8719-421b-a485-28c94b2342d6","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":180,"box":{"x":70,"y":536,"width":814,"height":11}},{"id":"4122a13c-361b-49f1-a1f1-b79c34b82598","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":180,"box":{"x":69,"y":551,"width":821,"height":11}},{"id":"71418000-979b-43e3-90d0-27cb1e179e1b","block_type":"box","text":"foreign taxes and other information needed to claim the foreign tax credit.","page_number":180,"box":{"x":68,"y":566,"width":527,"height":11}},{"id":"a40ff395-994d-4ce9-8e68-3fc36b18d5c7","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":180,"box":{"x":102,"y":589,"width":768,"height":11}},{"id":"c4ee8d8c-878d-4c08-b0e7-4c12c1e0661e","block_type":"box","text":"other things, (a) affect the character of gains and losses realized, (b) disallow, suspend or otherwise limit the","page_number":180,"box":{"x":69,"y":604,"width":780,"height":11}},{"id":"08f56e85-fbe1-4bf9-ae78-75be3a267aab","block_type":"box","text":"allowance of cer tain losses or deductions, and (c) accelerate the recognition of income without a corresponding","page_number":180,"box":{"x":69,"y":619,"width":797,"height":11}},{"id":"e49a0be6-b0f5-49a3-b224-674c3567a983","block_type":"box","text":"receipt of cash (with which to make the necessary distributions to satisfy distribution requirements applicable to","page_number":180,"box":{"x":69,"y":634,"width":802,"height":11}},{"id":"bf01d80a-22a5-4801-af71-b316b34fddab","block_type":"box","text":"regulated investment companies). Operation of these rules could, therefore, affect the character, amount and timing","page_number":180,"box":{"x":69,"y":649,"width":831,"height":12}},{"id":"e0bb755e-34f1-4a08-9b9d-864e29e1403f","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":180,"box":{"x":69,"y":664,"width":776,"height":12}},{"id":"c3d6a273-d0a2-4281-b489-2004f10851d8","block_type":"box","text":"positions in its por tfolio (","page_number":180,"box":{"x":70,"y":680,"width":177,"height":11}},{"id":"e33bb789-c3b9-4247-ade4-aa5e9322e489","block_type":"box","text":"i.e.","page_number":180,"box":{"x":249,"y":680,"width":20,"height":9}},{"id":"9be199cd-80bd-44a1-8123-e37c0550f6b3","block_type":"box","text":", treat them as sold on the last day of the taxable year), and may result in the recognition","page_number":180,"box":{"x":272,"y":680,"width":636,"height":11}},{"id":"26ba5b37-d6cd-4fca-b5b9-8ff737abf3c6","block_type":"box","text":"of income without a corresponding receipt of cash. Funds engaging in transactions affected by these provisions","page_number":180,"box":{"x":69,"y":695,"width":795,"height":11}},{"id":"8bed9fa4-1256-4b8b-b4e0-811fcb57aa82","block_type":"box","text":"intend to monitor their transactions, make appropriate tax elections and make appropriate entries in their books and","page_number":180,"box":{"x":70,"y":710,"width":830,"height":11}},{"id":"9ef9bff5-7e3b-46fb-bac4-328f1dddc6a8","block_type":"box","text":"records to lessen the effect of these tax rules and avoid any possible disqualification from the special treatment","page_number":180,"box":{"x":69,"y":725,"width":804,"height":11}},{"id":"f6c268e8-5d36-494a-8771-ed2683190f35","block_type":"box","text":"afforded regulated investment companies under the Code.","page_number":180,"box":{"x":69,"y":740,"width":415,"height":11}},{"id":"1c8252f0-efa6-4b70-a8f9-56bc2180899f","block_type":"box","text":"Cer tain of a Fund’s investments in derivative instruments and foreign currency-denominated instruments, and","page_number":180,"box":{"x":102,"y":763,"width":781,"height":11}},{"id":"8caafaaf-5226-4a7e-b39a-a1b9dfd1b2a5","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":180,"box":{"x":69,"y":778,"width":835,"height":11}},{"id":"f1189a01-bc89-4886-924a-7f6c5c731d27","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":180,"box":{"x":70,"y":793,"width":811,"height":11}},{"id":"1f116575-7754-4492-aef2-aabf1a33f9cd","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":180,"box":{"x":69,"y":808,"width":818,"height":11}},{"id":"bceee9dc-b4d8-4626-b82e-8a06c48e2afd","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":180,"box":{"x":69,"y":823,"width":820,"height":12}},{"id":"f8ccf73f-1b38-4f06-95d0-33a93763e8c0","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":180,"box":{"x":69,"y":838,"width":834,"height":11}},{"id":"89966fe2-0baf-47c2-8c4a-393f6896eb03","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":180,"box":{"x":69,"y":853,"width":833,"height":12}},{"id":"0599b2bb-871e-4dc6-a63b-dc7163c3d866","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":180,"box":{"x":69,"y":869,"width":805,"height":11}},{"id":"b2a5a75a-8438-41bd-b636-53cc06d97cf8","block_type":"box","text":"II-134","page_number":180,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"8d6f984b-e005-4db5-a708-b407c0f42faa","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":180,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"42531ef3-2d6a-4c58-a0d0-429eb1f41a4d","block_type":"box","text":"earnings and profits (including earnings and profits arising from tax-exempt income), (ii) thereafter, as a return of","page_number":181,"box":{"x":69,"y":45,"width":805,"height":11}},{"id":"f0838a26-635c-4151-9f93-6cde79e968df","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":181,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"ce6596c1-ac30-4f80-a456-95623c00cb9b","block_type":"box","text":"capital asset.","page_number":181,"box":{"x":69,"y":75,"width":95,"height":11}},{"id":"d6e6c947-6310-459b-906b-e6ba2872ee72","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":181,"box":{"x":102,"y":98,"width":787,"height":11}},{"id":"7b1c1857-248a-4cfc-b350-33ee00e2fe20","block_type":"box","text":"indefinitely or permanently deferred as “wash sales.” Distributions of shor t-term capital gains by underlying funds will","page_number":181,"box":{"x":70,"y":113,"width":836,"height":11}},{"id":"ad3de958-a594-4e58-8018-24cc5667df9a","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":181,"box":{"x":69,"y":128,"width":812,"height":11}},{"id":"5ab7e726-9420-4c72-a9ee-e747e6df3674","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":181,"box":{"x":69,"y":143,"width":805,"height":11}},{"id":"bfd896a9-9387-45fa-8d10-9367071bc667","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":181,"box":{"x":68,"y":158,"width":829,"height":11}},{"id":"c167642d-fd76-449b-8ab4-fd65e41ff215","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":181,"box":{"x":70,"y":173,"width":803,"height":11}},{"id":"06d9e33d-13da-449a-85f0-54b35a07c9b7","block_type":"box","text":"Fund were to invest otherwise.","page_number":181,"box":{"x":70,"y":188,"width":216,"height":9}},{"id":"e4ad4ca2-b717-4833-bfb3-b25ae5470681","block_type":"box","text":"A Fund may take cer tain positions through a wholly-owned (or majority-owned), foreign subsidiary (the","page_number":181,"box":{"x":101,"y":211,"width":721,"height":11}},{"id":"343b82c9-29f2-477c-a91f-c6f1caed8925","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":181,"box":{"x":70,"y":226,"width":787,"height":11}},{"id":"5208ffc0-8b32-4e60-9d59-c02e7e628464","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":181,"box":{"x":70,"y":241,"width":831,"height":11}},{"id":"5d82fc2c-0340-4699-b7b2-09502f4cae14","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":181,"box":{"x":68,"y":256,"width":823,"height":12}},{"id":"fed7f3b7-2085-4436-8578-3e41acf98f8e","block_type":"box","text":"differently (for example, as capital gain) at the Subsidiary level and regardless of whether that income is distributed","page_number":181,"box":{"x":69,"y":271,"width":825,"height":12}},{"id":"cab63aa8-fcf2-4b5c-8a25-6ef53a861d94","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":181,"box":{"x":68,"y":286,"width":838,"height":12}},{"id":"51571358-84e6-46ed-9cbd-b59e7590361f","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":181,"box":{"x":68,"y":302,"width":830,"height":11}},{"id":"312be59f-2415-4bd5-ad95-1ceb5de7f81d","block_type":"box","text":"expected that the Subsidiary will be subject to an entity-level federal tax.","page_number":181,"box":{"x":69,"y":317,"width":515,"height":11}},{"id":"5e4c7426-2b6e-46da-bb1e-46e08aeb791c","block_type":"box","text":"If a Fund purchases shares of an investment company (or similar investment entity) organized under foreign law,","page_number":181,"box":{"x":102,"y":339,"width":798,"height":12}},{"id":"4b6a9692-e47e-4d87-a9ab-cba50a5dfd39","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":181,"box":{"x":68,"y":355,"width":835,"height":11}},{"id":"2518240b-0c97-4727-9cf7-57394f8a39d2","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":181,"box":{"x":70,"y":370,"width":827,"height":11}},{"id":"af354abb-5be2-4514-9967-b67233244081","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":181,"box":{"x":68,"y":385,"width":830,"height":11}},{"id":"49adb94a-29c5-4851-a1bb-3d481d00b9da","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":181,"box":{"x":69,"y":400,"width":802,"height":11}},{"id":"604fc0c3-a303-4183-99ff-35c054192bfb","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":181,"box":{"x":69,"y":415,"width":821,"height":11}},{"id":"ba13a838-ea35-4e02-89d2-0a2640b3ba91","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":181,"box":{"x":70,"y":430,"width":797,"height":11}},{"id":"5596eb5a-b752-44ce-ae90-2a1b33a93ebb","block_type":"box","text":"made separately for each PFIC held and, once made, would be effective for all subsequent taxable years, unless","page_number":181,"box":{"x":69,"y":445,"width":801,"height":11}},{"id":"c23b007a-c4c8-49a1-99ad-3f01bca3980a","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":181,"box":{"x":69,"y":460,"width":818,"height":12}},{"id":"9242d106-3e51-4c5f-b1ca-be8d5d92859f","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":181,"box":{"x":68,"y":475,"width":797,"height":12}},{"id":"1a21013a-be63-4531-ba6d-4ec6d4c8bc0a","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":181,"box":{"x":69,"y":491,"width":824,"height":11}},{"id":"d2a7c5d9-c607-48ca-aeb0-0829ef6a7f88","block_type":"box","text":"to-market election, a Fund could avoid imposition of the interest charge with respect to excess distributions from","page_number":181,"box":{"x":68,"y":506,"width":804,"height":11}},{"id":"dbbc26ce-0504-41ab-b6fc-68304d16c053","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":181,"box":{"x":69,"y":521,"width":831,"height":11}},{"id":"1ee99347-cace-48a6-9772-1c07ec946e1f","block_type":"box","text":"PFICs.","page_number":181,"box":{"x":69,"y":536,"width":42,"height":9}},{"id":"0d17bf82-b041-4cd1-8092-0fe70ad929ed","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":181,"box":{"x":102,"y":559,"width":804,"height":11}},{"id":"bdafc385-2546-4a6e-af10-fa1ae7dcd4ff","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":181,"box":{"x":69,"y":574,"width":816,"height":11}},{"id":"56540e7f-d682-4be1-80fc-96d5802cad5b","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":181,"box":{"x":69,"y":589,"width":816,"height":11}},{"id":"2d795f38-c4e2-424b-81ec-73617862d233","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":181,"box":{"x":68,"y":604,"width":840,"height":11}},{"id":"9311b4b7-6150-48ab-9791-3999d503e30c","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":181,"box":{"x":68,"y":619,"width":804,"height":11}},{"id":"72df3f50-5a4b-45ce-9bbf-7bab33b1e7e4","block_type":"box","text":"difficult or impossible to obtain.","page_number":181,"box":{"x":69,"y":634,"width":225,"height":11}},{"id":"dad7bfb4-c7bd-4db8-81ab-15cc4f877792","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":181,"box":{"x":102,"y":657,"width":796,"height":11}},{"id":"5ab64cbb-a9a9-4957-88b2-a6e76585df5c","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":181,"box":{"x":69,"y":672,"width":806,"height":11}},{"id":"fa53fa7f-ab50-479a-aad4-71c0bdd40426","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":181,"box":{"x":69,"y":687,"width":778,"height":11}},{"id":"ac494d3d-4e71-4946-a739-bd8c050f3ddb","block_type":"box","text":"currency and PFIC gains plus the excess of post-December ordinary losses over post-December ordinary income) until","page_number":181,"box":{"x":69,"y":702,"width":838,"height":12}},{"id":"18df36b7-9b87-48c7-be1c-90354ef8ce92","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":181,"box":{"x":68,"y":717,"width":824,"height":12}},{"id":"53065fc7-e3db-4114-ba5e-eb8bd0b4c38e","block_type":"box","text":"recognition of such realized losses. Such deferrals and other rules regarding gains and losses realized after October","page_number":181,"box":{"x":69,"y":732,"width":830,"height":12}},{"id":"7d441f50-4cbf-41af-a46d-050bcb46a32b","block_type":"box","text":"(or December) may affect the tax character of shareholder distributions.","page_number":181,"box":{"x":69,"y":748,"width":511,"height":11}},{"id":"5f1fa1d4-b628-439b-bade-866b3097d87c","block_type":"box","text":"Municipal Funds","page_number":181,"box":{"x":102,"y":771,"width":115,"height":10}},{"id":"4fafc5ac-f75a-4193-9bab-de761a11efc8","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":181,"box":{"x":102,"y":793,"width":798,"height":11}},{"id":"0d618a1d-fb7e-457e-a0b6-db3c46c6a5c9","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":181,"box":{"x":69,"y":808,"width":815,"height":11}},{"id":"3766172d-f4fd-46f7-8a74-28c65decf13f","block_type":"box","text":"Fund’s total assets consists of obligations exempt from U.S. federal income tax (“tax-exempt obligations”) under","page_number":181,"box":{"x":70,"y":823,"width":803,"height":12}},{"id":"a8293ca8-9b85-4254-8410-e90fbbe70e98","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":181,"box":{"x":69,"y":838,"width":826,"height":12}},{"id":"c3121b22-0062-4e4f-8df3-23241a616ab5","block_type":"box","text":"qualified to pay exempt-interest dividends to holders of all outstanding classes of its shares (together the","page_number":181,"box":{"x":69,"y":853,"width":752,"height":12}},{"id":"f8ecd508-e097-4fa7-855f-ff0eca8edbff","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":181,"box":{"x":70,"y":869,"width":817,"height":11}},{"id":"4aa2267d-0f2c-42ad-b9f4-4e00c859d4a1","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":181,"box":{"x":70,"y":884,"width":780,"height":11}},{"id":"13dd7a61-3f24-480d-adfc-bb7bc48274b7","block_type":"box","text":"interest from tax-exempt obligations (as well as ordinary income, capital gains and tax preference items discussed","page_number":181,"box":{"x":70,"y":899,"width":815,"height":11}},{"id":"283bb156-de1b-4252-ae0a-dfc9ad90b7bf","block_type":"box","text":"II-135","page_number":181,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"fb7a139c-0a6b-4a33-aec8-0f5351bcb5f2","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":181,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"eef14eb7-4e72-431a-9886-c70aad1e08a0","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":182,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"f5488b8c-7014-4ddd-a400-6c2fdc859def","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":182,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"b6bdefaa-360d-4ec8-8c5f-6a2ffca78731","block_type":"box","text":"to each class of shareholders during the taxable year, or such other method as the IRS may prescribe.","page_number":182,"box":{"x":68,"y":75,"width":730,"height":11}},{"id":"4c2e2498-b7b4-49bd-8cc8-8d32e1403690","block_type":"box","text":"Exempt-interest dividends will be excludable from a shareholder’s gross income for U.S. federal income tax","page_number":182,"box":{"x":102,"y":98,"width":763,"height":11}},{"id":"8c317222-f0d2-4296-b5d7-0bf2b5b4b7bc","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":182,"box":{"x":70,"y":113,"width":809,"height":11}},{"id":"5e8e445c-b101-4586-9db6-a6a37573c08e","block_type":"box","text":"security and railroad retirement benefits subject to U.S. federal income taxes. Interest on indebtedness incurred or","page_number":182,"box":{"x":69,"y":128,"width":821,"height":11}},{"id":"54e167c0-4b00-458e-9f48-c748a556f5e7","block_type":"box","text":"continued to purchase or carry shares of a regulated investment company paying exempt-interest dividends, such as","page_number":182,"box":{"x":69,"y":143,"width":831,"height":11}},{"id":"ecafc7c3-f92b-43e8-9452-69c6bab92f47","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":182,"box":{"x":68,"y":158,"width":800,"height":11}},{"id":"8d9d07e7-fd64-4148-bbd7-a33ddc886739","block_type":"box","text":"exempt-interest dividends. Shareholders are advised to consult their tax advisors with respect to whether exempt","page_number":182,"box":{"x":69,"y":173,"width":810,"height":11}},{"id":"4433424b-235a-4288-896e-5b681109e1d8","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":182,"box":{"x":70,"y":188,"width":836,"height":11}},{"id":"d1a31d02-7e07-4cc3-9e8c-478369ede7a6","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":182,"box":{"x":69,"y":203,"width":835,"height":12}},{"id":"6dc05617-4c82-476b-b7a7-d469b213c62a","block_type":"box","text":"of PABs, if any, held by a Fund.","page_number":182,"box":{"x":69,"y":218,"width":217,"height":12}},{"id":"2e594d9c-038a-433b-8641-85d2396b7381","block_type":"box","text":"Substitute payments received by a Fund representing interest paid on tax-exempt obligations loaned out by the","page_number":182,"box":{"x":102,"y":241,"width":788,"height":11}},{"id":"10beb174-c34d-4e04-9519-a3da6ed4704e","block_type":"box","text":"Fund will not be considered exempt interest, and distributions by the Fund of such substitute payments will not","page_number":182,"box":{"x":70,"y":256,"width":790,"height":11}},{"id":"64b36b30-2ee5-4532-982f-a56fda204481","block_type":"box","text":"constitute exempt-interest dividends.","page_number":182,"box":{"x":69,"y":272,"width":261,"height":10}},{"id":"6d69e54b-4bfa-4e52-a316-810eab290131","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":182,"box":{"x":102,"y":294,"width":765,"height":11}},{"id":"6cf87263-9713-4f8d-abcc-07e191486c7d","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":182,"box":{"x":69,"y":309,"width":819,"height":11}},{"id":"9c91ed37-c5cf-4638-9b17-d3680c696956","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":182,"box":{"x":68,"y":324,"width":813,"height":12}},{"id":"4ece97d6-7ed2-4332-b588-b2c24d22742f","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":182,"box":{"x":70,"y":339,"width":809,"height":12}},{"id":"313e3364-57eb-424b-a97d-972ad49f13da","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":182,"box":{"x":69,"y":355,"width":829,"height":11}},{"id":"9df49c65-7881-4259-b50c-651e61337659","block_type":"box","text":"any capital gain dividends received by the shareholder.","page_number":182,"box":{"x":69,"y":370,"width":388,"height":11}},{"id":"4ca3c973-1fd7-4a0c-af68-a01d165e71d7","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":182,"box":{"x":101,"y":392,"width":787,"height":12}},{"id":"b24d9167-5586-43eb-8b97-e598359945eb","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":182,"box":{"x":69,"y":407,"width":817,"height":12}},{"id":"7b0ce1d7-9761-4b35-a974-b2a1afbf4efa","block_type":"box","text":"income dividends received by shareholders.","page_number":182,"box":{"x":70,"y":423,"width":309,"height":11}},{"id":"3c693ce5-f083-4371-92c0-d0f5ecb06f87","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":182,"box":{"x":101,"y":446,"width":766,"height":11}},{"id":"a181b386-761a-4dca-a607-faf67eceffbc","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":182,"box":{"x":69,"y":460,"width":808,"height":12}},{"id":"adeb1774-a6c9-4b19-af6b-303658c45c00","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":182,"box":{"x":70,"y":476,"width":815,"height":11}},{"id":"9f5e9c61-34fd-4da4-bb2f-3cb0e7a86fbc","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":182,"box":{"x":70,"y":491,"width":815,"height":11}},{"id":"1a56cb81-2543-4c20-bd07-b9d11f7c1a1d","block_type":"box","text":"the accrued market discount.","page_number":182,"box":{"x":68,"y":506,"width":208,"height":9}},{"id":"dc45ffd1-1167-41b6-88da-421746cbfe0a","block_type":"box","text":"The Code subjects interest received on cer tain otherwise tax-exempt securities to a federal alternative minimum","page_number":182,"box":{"x":101,"y":528,"width":801,"height":12}},{"id":"cd7ac574-d1c3-4168-8aeb-9eb631441802","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":182,"box":{"x":68,"y":543,"width":818,"height":12}},{"id":"3b9ae1fe-f47c-4627-ac77-a55fe1d248c1","block_type":"box","text":"are bonds that, although tax-exempt, are used for purposes other than those generally per formed by governmental","page_number":182,"box":{"x":69,"y":559,"width":816,"height":11}},{"id":"21726dbe-8c41-4548-a198-57a99d949442","block_type":"box","text":"units and that benefit non-governmental entities (","page_number":182,"box":{"x":69,"y":574,"width":351,"height":11}},{"id":"10f9cfd8-1e99-44bd-9df1-6acb1608fe10","block_type":"box","text":"e.g.","page_number":182,"box":{"x":422,"y":575,"width":24,"height":10}},{"id":"0c806a08-2b58-4581-9bd4-22102ad80484","block_type":"box","text":", bonds used for industrial development or housing purposes).","page_number":182,"box":{"x":449,"y":574,"width":441,"height":11}},{"id":"192fc83c-2d4d-4e03-a50a-36b62dbe1cbb","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":182,"box":{"x":70,"y":589,"width":827,"height":11}},{"id":"0ed872c9-8bcc-4504-bab8-a05000f91085","block_type":"box","text":"such bonds, including shareholders of a Fund, to a federal alternative minimum tax. A Fund will purchase such","page_number":182,"box":{"x":69,"y":604,"width":786,"height":11}},{"id":"f7751de6-d461-439c-b1a9-744eb3bf49f5","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":182,"box":{"x":70,"y":619,"width":782,"height":11}},{"id":"4488a0e2-4808-4eeb-a1a3-9ba957484d38","block_type":"box","text":"declared during the year that constitute an item of tax preference for alternative minimum tax purposes.","page_number":182,"box":{"x":69,"y":634,"width":740,"height":12}},{"id":"8e581920-8d80-4efe-a07d-6e047845c0b7","block_type":"box","text":"Each Municipal Fund may engage in interest rate swap transactions. The U.S. federal income tax rules governing","page_number":182,"box":{"x":102,"y":657,"width":802,"height":11}},{"id":"77b07296-fc91-4779-8a39-07c9fb594ffa","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":182,"box":{"x":68,"y":672,"width":812,"height":11}},{"id":"36b843af-cece-4242-88f8-a5e5526a96f9","block_type":"box","text":"such arrangements as ordinary income and to amor tize payments made under cer tain circumstances. Because","page_number":182,"box":{"x":69,"y":687,"width":794,"height":11}},{"id":"89127c9c-e425-4ce3-8141-68e5774b20ee","block_type":"box","text":"payments received by a Fund in connection with swap transactions will be taxable rather than tax-exempt and","page_number":182,"box":{"x":70,"y":703,"width":776,"height":10}},{"id":"d49dc843-88db-4f35-bae5-b6bf947496f7","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":182,"box":{"x":69,"y":717,"width":826,"height":12}},{"id":"9e186d1e-1e2d-4795-87d8-8041831444d0","block_type":"box","text":"may result in increased taxable distributions to shareholders.","page_number":182,"box":{"x":69,"y":733,"width":436,"height":11}},{"id":"080bcea1-8f71-4768-a4b7-09c1e0eeebc0","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":182,"box":{"x":102,"y":755,"width":771,"height":11}},{"id":"fe98878c-8ea5-476f-bbe4-8590a5d5c4b2","block_type":"box","text":"California Municipal Oppor tunities Fund, BlackRock New Jersey Municipal Bond Fund, BlackRock New York Municipal","page_number":182,"box":{"x":69,"y":770,"width":828,"height":11}},{"id":"4c0cfe47-58f4-42c3-b16b-cb3659727482","block_type":"box","text":"Oppor tunities Fund and BlackRock Pennsylvania Municipal Bond Fund, as well as information on economic conditions","page_number":182,"box":{"x":69,"y":785,"width":836,"height":12}},{"id":"e2209ba9-f97c-4e36-9bce-5709e53bd1bd","block_type":"box","text":"within each applicable state.","page_number":182,"box":{"x":68,"y":801,"width":203,"height":11}},{"id":"5b8cde21-4496-4455-8d99-543ac40f81ca","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":182,"box":{"x":102,"y":823,"width":774,"height":12}},{"id":"98675300-519d-442c-b73e-7b001acb07a0","block_type":"box","text":"which it has invested for purposes of satisfying various qualification requirements of the Code applicable to regulated","page_number":182,"box":{"x":68,"y":838,"width":837,"height":12}},{"id":"8bf0ca22-740f-44b2-9448-8643270960d3","block_type":"box","text":"investment companies. Each Master Por tfolio is classified either as a par tnership or a separate disregarded entity","page_number":182,"box":{"x":70,"y":853,"width":816,"height":12}},{"id":"3435cfeb-b001-4eab-bdce-92c66d1bfea7","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":182,"box":{"x":69,"y":869,"width":830,"height":11}},{"id":"2bb94b05-7949-4870-8bea-ad35c3ce9f5f","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":182,"box":{"x":68,"y":884,"width":822,"height":11}},{"id":"66adedd1-8396-4054-bbd9-92724449b863","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":182,"box":{"x":70,"y":899,"width":783,"height":11}},{"id":"034df400-4943-4842-9aa0-19819c04b48f","block_type":"box","text":"II-136","page_number":182,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"5a426c68-1b0d-449d-a66f-6aa8d7751519","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":182,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"46c5993d-b8c4-480a-9239-18e1c035067a","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":183,"box":{"x":68,"y":45,"width":822,"height":11}},{"id":"4475a05f-2ea7-43fd-8633-b35c667b75d5","block_type":"box","text":"the Feeder Fund’s assets in accordance with the investment policies applicable to the Feeder Fund.","page_number":183,"box":{"x":68,"y":60,"width":710,"height":11}},{"id":"3c7f0b0e-4db2-4ec9-ad22-557567a04768","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":183,"box":{"x":102,"y":83,"width":796,"height":11}},{"id":"75d86178-9fcd-4e01-9c40-3ec7216d3bfc","block_type":"box","text":"from state income taxation dividends paid by regulated investment companies that are derived from interest on U.S.","page_number":183,"box":{"x":68,"y":98,"width":828,"height":11}},{"id":"6344d981-e705-4cb1-8b74-c9e60e6c7e83","block_type":"box","text":"government obligations. State law varies as to whether dividend income attributable to U.S. government obligations is","page_number":183,"box":{"x":68,"y":113,"width":841,"height":11}},{"id":"b077fabc-3a0b-4c8f-a964-970e83e7916a","block_type":"box","text":"exempt from state income tax.","page_number":183,"box":{"x":69,"y":128,"width":216,"height":11}},{"id":"dc1a1992-95ce-4915-9a23-63ea303f29d8","block_type":"box","text":"Shareholders of each Fund are urged to consult their tax advisers regarding specific questions as to federal,","page_number":183,"box":{"x":102,"y":150,"width":771,"height":12}},{"id":"6cfe3181-1f76-419a-9191-2d1b9798cce6","block_type":"box","text":"foreign, state or local taxes with respect to their Fund. Foreign investors should consider applicable foreign taxes in","page_number":183,"box":{"x":68,"y":166,"width":823,"height":11}},{"id":"8bfd6914-a139-400b-9c80-a0378fdfeb57","block_type":"box","text":"their evaluation of an investment in a Fund.","page_number":183,"box":{"x":68,"y":181,"width":309,"height":9}},{"id":"5ae5ca9a-73c6-48a4-9f09-f7dbc7514ffd","block_type":"box","text":"The foregoing general discussion of U.S. federal income tax consequences is based on the Code and the","page_number":183,"box":{"x":101,"y":203,"width":749,"height":12}},{"id":"1fae5d19-5b31-4ec9-929d-2ee3efdfa2eb","block_type":"box","text":"regulations issued thereunder as in effect on the date of this SAI. Future legislative or administrative changes or","page_number":183,"box":{"x":69,"y":218,"width":803,"height":12}},{"id":"c87eee38-847c-4689-8cd2-279a78c82df1","block_type":"box","text":"cour t decisions may significantly change the conclusions expressed in this discussion, and any such changes or","page_number":183,"box":{"x":69,"y":234,"width":801,"height":11}},{"id":"64f03d53-a274-47cb-b1db-5cd7c9aa55e4","block_type":"box","text":"decisions may have a retroactive effect.","page_number":183,"box":{"x":69,"y":249,"width":283,"height":11}},{"id":"dc3403db-2681-4487-9cd4-e4a3b64f8ba3","block_type":"box","text":"PERFORMANCE DATA","page_number":183,"box":{"x":403,"y":278,"width":173,"height":10}},{"id":"61e4cf47-92dd-4137-b84e-665413df5ada","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":183,"box":{"x":102,"y":301,"width":738,"height":11}},{"id":"145f32df-20db-4ddd-8530-d04499842813","block_type":"box","text":"applicable, yield and tax-equivalent yield in adver tisements or information furnished to present or prospective","page_number":183,"box":{"x":69,"y":316,"width":779,"height":11}},{"id":"640faedb-59dd-4893-b087-5256258eabf1","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":183,"box":{"x":69,"y":331,"width":833,"height":11}},{"id":"41f1d573-c002-4727-8884-a72dc30d364d","block_type":"box","text":"intended to indicate future per formance. Average annual total return is determined separately for each class of","page_number":183,"box":{"x":70,"y":346,"width":792,"height":12}},{"id":"79d90e0a-f6e1-43e7-9f6d-0dc55060503a","block_type":"box","text":"shares in accordance with a formula specified by the Commission.","page_number":183,"box":{"x":69,"y":361,"width":473,"height":12}},{"id":"8a0b2bfe-d153-46f2-88b0-4cb3dcdbb3e5","block_type":"box","text":"Quotations of average annual total return, before tax, for the specified periods are computed by finding the","page_number":183,"box":{"x":102,"y":384,"width":761,"height":11}},{"id":"db720ffe-b7c1-4a9a-8aaa-6a3b9c8ea96b","block_type":"box","text":"average annual compounded rates of return (based on net investment income and any realized and unrealized capital","page_number":183,"box":{"x":69,"y":399,"width":836,"height":12}},{"id":"cd319a90-e018-4967-8489-adcf1557cdf7","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":183,"box":{"x":68,"y":414,"width":798,"height":12}},{"id":"55013c46-ab20-4a54-a014-39e0c07252a0","block_type":"box","text":"redeemable value of such investment at the end of each period. Average annual total return before taxes is","page_number":183,"box":{"x":69,"y":429,"width":765,"height":12}},{"id":"1aa99656-6cec-4c30-81f4-c39214613371","block_type":"box","text":"computed assuming all dividends are reinvested and taking into account all applicable recurring and nonrecurring","page_number":183,"box":{"x":69,"y":445,"width":808,"height":11}},{"id":"18d6abc9-c537-4dd5-8c10-1bf1ac7f2c7f","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":183,"box":{"x":69,"y":460,"width":813,"height":11}},{"id":"e62c4d0d-8b36-4250-a0f5-4fed97411a22","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":183,"box":{"x":69,"y":475,"width":839,"height":11}},{"id":"e83a6390-816b-4a27-b9ee-04179afa61e1","block_type":"box","text":"but does not take into account taxes payable on dividends or on redemption.","page_number":183,"box":{"x":69,"y":490,"width":546,"height":11}},{"id":"c77105f4-dfd8-4f97-847e-ab23ae22c9a9","block_type":"box","text":"Quotations of average annual total return, after taxes, on dividends for the specified periods are computed by","page_number":183,"box":{"x":102,"y":513,"width":781,"height":11}},{"id":"80648bd8-4733-4607-911d-c6cb2685897a","block_type":"box","text":"finding the average annual compounded rates of return that would equate the initial amount invested to the ending","page_number":183,"box":{"x":68,"y":528,"width":819,"height":11}},{"id":"2ab523b4-e8a5-4da8-8757-52b210a8fde5","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":183,"box":{"x":68,"y":543,"width":810,"height":11}},{"id":"3aff1696-e592-4de8-9a91-b83a9f0e484d","block_type":"box","text":"period. Average annual total return after taxes on dividends is computed assuming all dividends, less the taxes due","page_number":183,"box":{"x":70,"y":558,"width":823,"height":11}},{"id":"86093d98-3189-4b61-affc-ba33e1a3e0e3","block_type":"box","text":"on such dividends, are reinvested and taking into account all applicable recurring and nonrecurring expenses,","page_number":183,"box":{"x":69,"y":573,"width":780,"height":11}},{"id":"a03f8c43-7ee1-4eb6-b743-2d2688b10138","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":183,"box":{"x":70,"y":588,"width":825,"height":12}},{"id":"973fd708-a411-4436-8ffa-83af1fb4d65e","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":183,"box":{"x":69,"y":603,"width":817,"height":11}},{"id":"a4753eaf-6356-4800-9f2c-356b533de299","block_type":"box","text":"due on dividends are calculated by applying to each dividend the highest applicable marginal U.S. federal individual","page_number":183,"box":{"x":69,"y":618,"width":820,"height":12}},{"id":"5c2bea22-ce37-4676-ba96-09b0706ab191","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":183,"box":{"x":70,"y":634,"width":833,"height":11}},{"id":"a5257867-fe11-46e5-9c0c-39856f673657","block_type":"box","text":"(including eligibility for the maximum 20% tax rate applicable to qualified dividend income) of each dividend. The","page_number":183,"box":{"x":69,"y":649,"width":797,"height":11}},{"id":"ccdd1ad7-69dd-4c5d-a480-50d93c6ded75","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":183,"box":{"x":68,"y":664,"width":824,"height":11}},{"id":"7d700f35-72ad-4db6-831f-aca8b4b709ae","block_type":"box","text":"may be adjusted to reflect subsequent recharacterizations of distributions. The applicable tax rates may vary over the","page_number":183,"box":{"x":69,"y":679,"width":837,"height":11}},{"id":"f9f6f927-a4a5-4df2-920a-1a07a4fe7b7f","block_type":"box","text":"measurement period. The effects of state and local taxes are not reflected. Applicable tax credits, such as foreign","page_number":183,"box":{"x":69,"y":694,"width":814,"height":11}},{"id":"93516670-c078-411e-afd3-8e038c9f567d","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":183,"box":{"x":69,"y":709,"width":830,"height":11}},{"id":"2d016aa2-91a3-4a64-b94a-2cff3c12386d","block_type":"box","text":"redemption at the end of the applicable periods with no tax consequences associated with such redemption.","page_number":183,"box":{"x":69,"y":724,"width":774,"height":11}},{"id":"8edbc9f9-831e-470a-b1b9-729c127a2ed7","block_type":"box","text":"Quotations of average annual total return, after taxes, on both dividends and redemption for the specified","page_number":183,"box":{"x":102,"y":747,"width":752,"height":11}},{"id":"c86598e1-3f78-4669-a611-3b0bb21cc744","block_type":"box","text":"periods are computed by finding the average annual compounded rates of return that would equate the initial amount","page_number":183,"box":{"x":70,"y":762,"width":835,"height":11}},{"id":"b5114f8b-1558-4565-a9e1-c8a3a0575940","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":183,"box":{"x":70,"y":777,"width":820,"height":12}},{"id":"68200c24-d29e-404f-9395-7f38f52e2c46","block_type":"box","text":"received during such period as well as on complete redemption. Average annual total return after taxes on","page_number":183,"box":{"x":69,"y":792,"width":756,"height":12}},{"id":"893cc955-49c3-41c5-8348-785340ff87ee","block_type":"box","text":"distributions and redemption is computed assuming all dividends, less the taxes due on such dividends, are","page_number":183,"box":{"x":69,"y":808,"width":772,"height":11}},{"id":"f741f3aa-fa29-43a5-a241-c10e7a003e6a","block_type":"box","text":"reinvested and taking into account all applicable recurring and nonrecurring expenses, including the maximum sales","page_number":183,"box":{"x":69,"y":823,"width":827,"height":11}},{"id":"c4f9e5af-8222-42b6-88ca-8dc64bb763ce","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":183,"box":{"x":69,"y":838,"width":825,"height":11}},{"id":"e275e88e-b423-4439-ae59-49e5cc9fe996","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":183,"box":{"x":70,"y":853,"width":812,"height":11}},{"id":"8dc902b4-7f5b-4708-8026-3b2718e403a1","block_type":"box","text":"complete redemption and payment of taxes due on such redemption. The ending value is determined assuming","page_number":183,"box":{"x":69,"y":868,"width":795,"height":11}},{"id":"5f929a1b-b42f-44ff-9283-9cc214b03fa4","block_type":"box","text":"complete redemption at the end of the applicable periods, subtracting capital gains taxes resulting from the","page_number":183,"box":{"x":69,"y":883,"width":768,"height":11}},{"id":"c1435267-0cba-49ac-82d6-558e326b7fbe","block_type":"box","text":"redemption and adding the presumed tax benefit from capital losses resulting from redemption. The taxes due on","page_number":183,"box":{"x":69,"y":898,"width":810,"height":11}},{"id":"bfb4abe7-59c1-491f-9565-7ce6594ee0b0","block_type":"box","text":"II-137","page_number":183,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"ae1ef186-40da-49e5-93f4-746390e909d4","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":183,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2ffce6ab-3bea-43a8-9b4a-7075bd6ca703","block_type":"box","text":"dividends and on the deemed redemption are calculated by applying the highest applicable marginal U.S. federal","page_number":184,"box":{"x":69,"y":45,"width":802,"height":11}},{"id":"30a49cad-8662-43fa-a6b0-eaac240c9a2a","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":184,"box":{"x":70,"y":60,"width":825,"height":11}},{"id":"5b8d9a7e-644c-4199-b385-ad83807d818d","block_type":"box","text":"the tax character (including eligibility for the maximum 20% tax rate applicable to qualified dividend income) of each","page_number":184,"box":{"x":68,"y":75,"width":823,"height":11}},{"id":"5721de36-2911-4700-8b38-afa85c405d24","block_type":"box","text":"component of each dividend and/or the redemption payment. The applicable tax rates may vary over the","page_number":184,"box":{"x":69,"y":90,"width":743,"height":11}},{"id":"3e4e4d14-969f-4d1e-b04c-7e0fdfe9c676","block_type":"box","text":"measurement period. The effects of state and local taxes are not reflected. Applicable tax credits, such as foreign","page_number":184,"box":{"x":69,"y":105,"width":814,"height":11}},{"id":"1e756e9d-ec91-4771-a641-a1f4974f06cf","block_type":"box","text":"tax credits, are taken into account according to federal law.","page_number":184,"box":{"x":68,"y":120,"width":422,"height":12}},{"id":"f6ae218e-df5a-43b9-a31e-15c0c8251e86","block_type":"box","text":"A Fund also may quote annual, average annual and annualized total return and aggregate total return","page_number":184,"box":{"x":101,"y":143,"width":720,"height":11}},{"id":"a14d7ab7-a617-4152-a36b-99ddbab09d41","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":184,"box":{"x":70,"y":157,"width":813,"height":12}},{"id":"a6ed3d6d-7235-4a48-b552-5a4e6938f14e","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":184,"box":{"x":69,"y":173,"width":781,"height":11}},{"id":"c5f1d0c5-6787-4c0c-afbc-d85f9840af96","block_type":"box","text":"computed as described above, except that (1) as required by the periods of the quotations, actual annual, annualized","page_number":184,"box":{"x":69,"y":188,"width":837,"height":11}},{"id":"c3be7cbf-687b-4696-a861-a7508432e94f","block_type":"box","text":"or aggregate data, rather than average annual data, may be quoted and (2) the maximum applicable sales charges","page_number":184,"box":{"x":69,"y":203,"width":817,"height":12}},{"id":"e4432cb9-31a6-4e61-91d0-9bef29b9d7b7","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":184,"box":{"x":68,"y":218,"width":815,"height":11}},{"id":"7b009fbd-add9-4384-9409-5c8a7bf526a7","block_type":"box","text":"per formance data calculations of including or excluding the maximum applicable sales charges, actual annual or","page_number":184,"box":{"x":70,"y":234,"width":801,"height":11}},{"id":"a9206d9f-b219-4c28-94f7-b3da1a437930","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":184,"box":{"x":69,"y":249,"width":819,"height":11}},{"id":"2002e017-b283-423b-a692-2d9809934521","block_type":"box","text":"return reflect compounding of return; aggregate total return data generally will be higher than average annual total","page_number":184,"box":{"x":69,"y":264,"width":811,"height":11}},{"id":"a9546c7b-ed72-4a15-9aca-6acd71bd6a7d","block_type":"box","text":"return data since the aggregate rates of return reflect compounding over a longer period of time.","page_number":184,"box":{"x":69,"y":279,"width":686,"height":11}},{"id":"7babfb94-07c0-4f27-bc7b-81fd91611b7e","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":184,"box":{"x":101,"y":302,"width":796,"height":11}},{"id":"197019a2-6f41-48a0-a8c9-65eea42c0624","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":184,"box":{"x":69,"y":317,"width":821,"height":11}},{"id":"a71abc5e-ded8-4cc8-8e1a-ad006517be10","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":184,"box":{"x":68,"y":332,"width":817,"height":11}},{"id":"fdc347c7-178d-4ebc-a772-685d33749221","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":184,"box":{"x":68,"y":347,"width":837,"height":11}},{"id":"ce3227ab-aef0-45f5-af19-46dc7605f853","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":184,"box":{"x":69,"y":362,"width":759,"height":11}},{"id":"2cbf35d8-1746-4314-bb3a-1aec217b0c89","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":184,"box":{"x":101,"y":385,"width":779,"height":11}},{"id":"f457466a-5b95-4a47-8cbe-62c44f444dd8","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":184,"box":{"x":70,"y":400,"width":819,"height":11}},{"id":"c646c8cf-8146-4e05-9fcb-732b3a8bcba2","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":184,"box":{"x":68,"y":415,"width":830,"height":11}},{"id":"1a1d5b3b-16bf-486d-a2e3-eaceb384b269","block_type":"box","text":"less than their original cost.","page_number":184,"box":{"x":70,"y":430,"width":196,"height":11}},{"id":"c778c77d-577d-4459-899f-fef71a4eb603","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":184,"box":{"x":102,"y":453,"width":782,"height":11}},{"id":"a9376c8f-d6c0-4cef-aaa1-49378df170b0","block_type":"box","text":"the case of CDSC shares applicable to cer tain investors, as described under “Purchase of Shares” and “Redemption","page_number":184,"box":{"x":68,"y":468,"width":836,"height":11}},{"id":"45eedc23-19e9-471e-8de0-aa14298ec6d9","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":184,"box":{"x":69,"y":483,"width":807,"height":11}},{"id":"4f1bb3c5-bf09-4a54-92d2-6c980affab62","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":184,"box":{"x":68,"y":498,"width":820,"height":11}},{"id":"c34f7de2-0f08-46fe-9be9-8737e767177b","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":184,"box":{"x":68,"y":513,"width":824,"height":12}},{"id":"33056bce-738a-4123-9832-76c87a84853f","block_type":"box","text":"lower amount of expenses is deducted.","page_number":184,"box":{"x":70,"y":528,"width":278,"height":11}},{"id":"a673cd69-7616-4b46-b651-5e1908a56ed2","block_type":"box","text":"On occasion, a Fund may compare its per formance to, among other things, the Fund’s benchmark index","page_number":184,"box":{"x":102,"y":551,"width":741,"height":11}},{"id":"04709278-d2be-4b87-8d34-35a1e361a5bf","block_type":"box","text":"indicated in the Prospectus, the Value Line Composite Index, the Dow Jones Industrial Average, or to other published","page_number":184,"box":{"x":70,"y":566,"width":830,"height":11}},{"id":"5e7e090c-c069-4884-97e7-20ec7e787c47","block_type":"box","text":"indices, or to per formance data published by Lipper Inc., Morningstar, Inc. (“Morningstar”),","page_number":184,"box":{"x":70,"y":581,"width":646,"height":12}},{"id":"e53048e2-2ccc-4897-8d1e-a9dd9b85c50c","block_type":"box","text":"Money Magazine, U.S.","page_number":184,"box":{"x":724,"y":581,"width":156,"height":12}},{"id":"0c34ac3b-ab07-46c6-9676-082242f0d155","block_type":"box","text":"News & World Repor t, BusinessWeek, Forbes Magazine, For tune Magazine","page_number":184,"box":{"x":70,"y":597,"width":533,"height":11}},{"id":"484d5118-6754-4344-9c62-062431221510","block_type":"box","text":"or other industry publications. When","page_number":184,"box":{"x":608,"y":597,"width":257,"height":11}},{"id":"1472558d-aecd-43c7-baf3-a16a562db126","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":184,"box":{"x":69,"y":612,"width":797,"height":11}},{"id":"5c9ea912-e31f-48f9-a0d7-cf20361545f0","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":184,"box":{"x":69,"y":627,"width":803,"height":11}},{"id":"20f95081-aa4c-4f58-97c0-d56c553f0d46","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":184,"box":{"x":69,"y":642,"width":824,"height":11}},{"id":"41f07d0c-e534-44de-9706-203bb7d74ab8","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":184,"box":{"x":70,"y":657,"width":818,"height":11}},{"id":"c3a86a30-04b7-49b7-9367-50fe6303b17d","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":184,"box":{"x":69,"y":672,"width":793,"height":11}},{"id":"23b46ce6-c83e-44b6-b9f2-e0992b040861","block_type":"box","text":"adver tisements or other materials other applicable measures of Fund per formance and may also make reference to","page_number":184,"box":{"x":69,"y":687,"width":826,"height":11}},{"id":"253c58b1-fd77-41fe-8ca1-c96debad7933","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":184,"box":{"x":69,"y":702,"width":825,"height":12}},{"id":"818ebefd-8ebd-4438-aa36-de622327d1c2","block_type":"box","text":"developed by Fund management.","page_number":184,"box":{"x":69,"y":718,"width":233,"height":11}},{"id":"2b917ee6-6be0-4540-becf-28fb71dcb2ca","block_type":"box","text":"A Fund may provide information designed to help investors understand how the Fund is seeking to achieve its","page_number":184,"box":{"x":101,"y":740,"width":780,"height":11}},{"id":"33f3585d-ae1a-401b-94e0-69590f743675","block_type":"box","text":"investment objectives. This may include information about past, current or possible economic, market, political or","page_number":184,"box":{"x":70,"y":755,"width":810,"height":11}},{"id":"0ccac136-7f5f-4f0e-97bc-35ee83dab0ae","block_type":"box","text":"other conditions, descriptive information or general principles of investing such as asset allocation, diversification","page_number":184,"box":{"x":69,"y":770,"width":810,"height":12}},{"id":"7cdb9480-4dcd-4bb7-bf13-ba4d36743703","block_type":"box","text":"and risk tolerance, discussion of a Fund’s por tfolio composition, investment philosophy, strategy or investment","page_number":184,"box":{"x":69,"y":785,"width":792,"height":12}},{"id":"f2e30e3b-efa2-4581-8570-b6abc912fcb6","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":184,"box":{"x":68,"y":801,"width":788,"height":11}},{"id":"c6e34db7-ff3b-47c2-a3d1-a3dbd2eb8a15","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":184,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"fcf797f4-80a5-46bb-ad7d-1cc74fbdc402","block_type":"box","text":"quote various measures of volatility and benchmark correlation in adver tising and other materials, and may compare","page_number":184,"box":{"x":69,"y":831,"width":830,"height":11}},{"id":"27d0687e-9ae2-45c0-9f32-e7d303929063","block_type":"box","text":"these measures to those of other funds or types of investments.","page_number":184,"box":{"x":68,"y":846,"width":461,"height":11}},{"id":"71f192d5-f17e-4cb4-95a8-9fa67a1fe3cb","block_type":"box","text":"II-138","page_number":184,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"09b94256-8210-4521-8c34-d86559e5ad0b","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":184,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"cba7dd53-a213-4950-a2b0-cf3625c0041d","block_type":"box","text":"PROXY VOTING POLICIES AND PROCEDURES","page_number":185,"box":{"x":308,"y":45,"width":362,"height":10}},{"id":"f66ce083-207a-42db-a6f8-52c16babf2bd","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":185,"box":{"x":101,"y":68,"width":802,"height":11}},{"id":"c1ad182a-8e36-482d-a393-b4d752344dee","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":185,"box":{"x":70,"y":83,"width":809,"height":11}},{"id":"625115b1-844c-4446-a0bc-f4a047c60dca","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":185,"box":{"x":69,"y":98,"width":833,"height":11}},{"id":"154b4200-e795-410d-af16-9f59cf187254","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":185,"box":{"x":70,"y":113,"width":755,"height":11}},{"id":"31536e09-c928-482c-a3cc-60ff77744a0f","block_type":"box","text":"With respect to Funds covered by the Active Fund Proxy Voting Policy, the Manager has adopted the BlackRock","page_number":185,"box":{"x":101,"y":136,"width":785,"height":11}},{"id":"6bd5fe75-e705-4c4b-b2f4-2ef48f097ccb","block_type":"box","text":"Active Investment Stewardship—Global Engagement and Voting Guidelines (the “BAIS Guidelines”). Cer tain of such","page_number":185,"box":{"x":68,"y":151,"width":822,"height":11}},{"id":"59d7345a-539e-45ae-b0bb-dbff2c2ea1c1","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":185,"box":{"x":70,"y":166,"width":824,"height":11}},{"id":"6bdd8a95-3fd9-45fc-864b-4bc54333ccfa","block_type":"box","text":"guidelines within the BAIS Guidelines that are applicable to cer tain climate and decarbonization issues (the “BAIS","page_number":185,"box":{"x":68,"y":181,"width":812,"height":12}},{"id":"11004cb4-88a1-4eed-acbe-670ac0efcf3d","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines”).","page_number":185,"box":{"x":69,"y":197,"width":392,"height":10}},{"id":"784272e1-2b6e-4d54-a0d4-576f5d060e58","block_type":"box","text":"With respect to Funds covered by the Index Equity Fund Proxy Voting Policy, the Manager has adopted the","page_number":185,"box":{"x":101,"y":219,"width":749,"height":11}},{"id":"efddde40-1823-40bc-bb25-85f12d76dd26","block_type":"box","text":"BlackRock Investment Stewardship (“BIS”) Global Benchmark Policy, comprised of the Global Principles for","page_number":185,"box":{"x":70,"y":234,"width":759,"height":11}},{"id":"62b1526e-7212-47d8-b5c7-e6a60948721d","block_type":"box","text":"Benchmark Policies, regional voting guidelines, and engagement priorities, which are each available upon request. In","page_number":185,"box":{"x":70,"y":250,"width":830,"height":11}},{"id":"8b760d76-b50f-4b22-85a0-b864620d84e9","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":185,"box":{"x":69,"y":264,"width":838,"height":12}},{"id":"f72591f5-cbf2-41a8-ac52-f2f297e4a2df","block_type":"box","text":"this SAI, follow supplemental guidelines that are applicable to cer tain climate and decarbonization issues (the “BIS","page_number":185,"box":{"x":68,"y":280,"width":822,"height":11}},{"id":"d3cb3892-583f-4ee0-af49-8fabebe16d44","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines”).","page_number":185,"box":{"x":69,"y":295,"width":392,"height":11}},{"id":"ee706cc6-a310-4df3-b70e-752407dbe522","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":185,"box":{"x":102,"y":317,"width":767,"height":12}},{"id":"74457bea-fdf0-43db-8b58-e22dc81b923a","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":185,"box":{"x":68,"y":332,"width":827,"height":12}},{"id":"aa5d9e54-f3de-4172-aee9-845f7eea1a49","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":185,"box":{"x":69,"y":348,"width":819,"height":11}},{"id":"30c01f30-9029-404e-9bde-b3847720c36c","block_type":"box","text":"underlying fund may use the Index Equity Fund Proxy Voting Policy, and the opposite is also true.","page_number":185,"box":{"x":69,"y":363,"width":684,"height":11}},{"id":"fe33dd29-1701-4bce-ac47-702264c9b99e","block_type":"box","text":"Copies of the Active Fund Proxy Voting Policy, Index Equity Fund Proxy Voting Policy, the BAIS Guidelines, the","page_number":185,"box":{"x":102,"y":385,"width":766,"height":12}},{"id":"610fe896-e221-4a73-81bf-9cc32d9ec0ab","block_type":"box","text":"Global Principles for Benchmark Policies and the BIS Climate and Decarbonization Stewardship Guidelines are","page_number":185,"box":{"x":69,"y":401,"width":784,"height":11}},{"id":"f74d244e-eb8b-4f13-81d1-ad00d7240119","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":185,"box":{"x":69,"y":416,"width":805,"height":11}},{"id":"5f6b0f96-44ab-4cc4-b412-abffd06b5a40","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":185,"box":{"x":68,"y":431,"width":790,"height":11}},{"id":"d6bf620c-99b9-4a0a-abd6-55d6d7e1b38a","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":185,"box":{"x":70,"y":446,"width":810,"height":11}},{"id":"2eb1267d-e45c-49cf-826d-273af9363d94","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":185,"box":{"x":69,"y":461,"width":788,"height":11}},{"id":"2f045fe7-601e-4111-8e07-c17dba68a047","block_type":"box","text":"Commission’s website at http://www.sec.gov.","page_number":185,"box":{"x":69,"y":476,"width":327,"height":11}},{"id":"011c2c1e-0e65-4120-bec1-e3f092c103c4","block_type":"box","text":"GENERAL INFORMATION","page_number":185,"box":{"x":391,"y":506,"width":195,"height":9}},{"id":"a0e2a1d4-2706-4343-a1cf-00cb876484e8","block_type":"box","text":"Description of Shares","page_number":185,"box":{"x":69,"y":536,"width":156,"height":11}},{"id":"cca8ea9a-6abb-4a13-a77f-48b01fb8ca9d","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":185,"box":{"x":102,"y":559,"width":800,"height":9}},{"id":"e2a8c527-f06b-4348-93bc-01b1d8b9818d","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":185,"box":{"x":69,"y":574,"width":811,"height":11}},{"id":"33ba84b1-85be-4162-8744-44f93d55beb4","block_type":"box","text":"Shareholders of a class that bears distribution and/or service expenses have exclusive voting rights with respect to","page_number":185,"box":{"x":69,"y":589,"width":825,"height":11}},{"id":"f86f2515-d6a7-405e-a59c-7c933511ecde","block_type":"box","text":"matters relating to such distribution and service expenditures. Voting rights are not cumulative, so that the holders of","page_number":185,"box":{"x":69,"y":604,"width":838,"height":11}},{"id":"305418b0-4e87-4c52-a0da-1c50d69dc5a9","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":185,"box":{"x":69,"y":619,"width":835,"height":11}},{"id":"733d1ba9-3163-414e-8973-1737a7ba396f","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":185,"box":{"x":69,"y":634,"width":781,"height":12}},{"id":"4a46f9d0-ff23-409b-a846-0623c13eceb3","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":185,"box":{"x":102,"y":657,"width":801,"height":11}},{"id":"396600b6-c0ea-4156-8a9e-dbdf100241af","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":185,"box":{"x":69,"y":672,"width":760,"height":11}},{"id":"ebd92042-a09d-4e78-bdb7-713f05c35ce2","block_type":"box","text":"management agreement; (iii) approval of a distribution agreement; and (iv) ratification of selection of independent","page_number":185,"box":{"x":69,"y":687,"width":810,"height":11}},{"id":"8fbf96bd-e693-4488-8c29-854b1cbec6c5","block_type":"box","text":"accountants. Shares issued are fully paid and non-assessable and have no preemptive rights. Redemption and","page_number":185,"box":{"x":69,"y":702,"width":790,"height":12}},{"id":"7ce05e5d-c1b8-417d-80d0-9ca8ee601e7a","block_type":"box","text":"conversion rights are discussed elsewhere herein and in each Fund’s Prospectus. Each share of each class of","page_number":185,"box":{"x":69,"y":717,"width":787,"height":12}},{"id":"447acffe-1cd2-4400-9522-4b4fbe475b11","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":185,"box":{"x":69,"y":733,"width":797,"height":11}},{"id":"f5c0439f-3bbc-4138-93c1-95137fbbf369","block_type":"box","text":"assets of the Fund upon liquidation or dissolution after satisfaction of outstanding liabilities.","page_number":185,"box":{"x":69,"y":748,"width":658,"height":11}},{"id":"40d6bb03-55cd-4cb7-9fa7-91e0451435fb","block_type":"box","text":"For Funds organized as Maryland corporations, the by-laws of the Fund require that a special meeting of","page_number":185,"box":{"x":102,"y":770,"width":741,"height":12}},{"id":"a0680310-20ef-4515-9a4f-87dbbf4c8c03","block_type":"box","text":"shareholders be held upon the written request of a minimum percentage of the outstanding shares of the Fund","page_number":185,"box":{"x":69,"y":785,"width":790,"height":12}},{"id":"a63ea709-7484-48ce-97b7-35459332f638","block_type":"box","text":"entitled to vote at such meeting, if they comply with applicable Maryland law.","page_number":185,"box":{"x":69,"y":801,"width":546,"height":11}},{"id":"6c86920c-3710-40b9-b34f-6863a401ad9a","block_type":"box","text":"Cer tain of the Funds are organized as “Massachusetts business trusts.” Under Massachusetts law,","page_number":185,"box":{"x":102,"y":823,"width":712,"height":12}},{"id":"5609d365-99c8-4f0c-a7f1-1878ba0542e9","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":185,"box":{"x":69,"y":838,"width":765,"height":11}},{"id":"1723ce6d-479b-460c-9c60-c2e7e7482338","block_type":"box","text":"obligations. However, the Declaration of Trust establishing a trust, a copy of which for each applicable Fund, together","page_number":185,"box":{"x":69,"y":853,"width":834,"height":12}},{"id":"79595c5a-fbe0-46eb-9aea-2ead630054d6","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":185,"box":{"x":68,"y":869,"width":729,"height":11}},{"id":"2cf8c661-0f00-4db1-9508-c9c9902fe3a1","block_type":"box","text":"Commonwealth of Massachusetts, contains an express disclaimer of shareholder liability for acts or obligations of","page_number":185,"box":{"x":69,"y":884,"width":815,"height":11}},{"id":"4269347d-f5e7-46d6-9ee4-5b1cfaa16a18","block_type":"box","text":"the trust and provides for indemnification and reimbursement of expenses out of the trust proper ty for any","page_number":185,"box":{"x":68,"y":899,"width":761,"height":11}},{"id":"7e221216-0f59-4daf-ab3f-52b25e97941e","block_type":"box","text":"II-139","page_number":185,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"07bd24db-6c74-47c7-8438-53c746dfe019","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":185,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0a1ecbde-1048-481d-b52d-cfa393a5cba3","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":186,"box":{"x":69,"y":45,"width":824,"height":11}},{"id":"e1e7c810-43ca-46e3-b370-80842e6fd4a1","block_type":"box","text":"may maintain appropriate insurance (for example, fidelity bond and errors and omissions insurance) for the protection","page_number":186,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"4e9fd3da-a57e-4463-8101-1837721b5f41","block_type":"box","text":"of the trust, its shareholders, trustees, officers, employees and agents covering possible tor t and other liabilities.","page_number":186,"box":{"x":69,"y":75,"width":813,"height":11}},{"id":"ed31ba4f-8b9d-4d41-ae0c-af76dfc86f67","block_type":"box","text":"Thus, the risk of a shareholder incurring financial loss on account of shareholder liability is limited to circumstances","page_number":186,"box":{"x":68,"y":90,"width":827,"height":11}},{"id":"8fbbaa28-8cfc-48fa-9075-b56c3c06bdb1","block_type":"box","text":"in which both inadequate insurance existed and the trust itself was unable to meet its obligations.","page_number":186,"box":{"x":70,"y":105,"width":699,"height":11}},{"id":"7f05f4a9-7de8-4433-ad28-a68594ea62ce","block_type":"box","text":"Cer tain Funds are organized as Delaware statutory trusts.","page_number":186,"box":{"x":102,"y":128,"width":413,"height":11}},{"id":"03921af4-03de-46fd-af07-93dbc3c05aca","block_type":"box","text":"Additional Information","page_number":186,"box":{"x":68,"y":158,"width":161,"height":9}},{"id":"b4c06160-408a-4aef-b3b6-6ccc0170a6b1","block_type":"box","text":"Under a separate agreement, BlackRock has granted cer tain Funds the right to use the “BlackRock” name and","page_number":186,"box":{"x":102,"y":181,"width":789,"height":11}},{"id":"6d95fc44-e8d0-4185-bca3-ab9c7285560a","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":186,"box":{"x":69,"y":196,"width":799,"height":11}},{"id":"efc1760c-5792-4475-b0e4-4dc130280b5a","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":186,"box":{"x":70,"y":211,"width":837,"height":11}},{"id":"6c2135d8-7e0b-474a-8f46-09837dafd30f","block_type":"box","text":"such name to any other company.","page_number":186,"box":{"x":69,"y":226,"width":238,"height":11}},{"id":"9b78a779-6a9b-49ef-9adf-22513dd456c2","block_type":"box","text":"II-140","page_number":186,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"3130743c-7176-4d7a-8352-28cf32cbbc60","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":186,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"64db6dc7-9a3a-492c-a9ed-c424f541e535","block_type":"box","text":"APPENDIX A","page_number":187,"box":{"x":438,"y":45,"width":101,"height":10}},{"id":"deb0c358-1336-4acb-8bdb-9ff85e8f5f7f","block_type":"box","text":"Description of Bond Ratings","page_number":187,"box":{"x":377,"y":68,"width":224,"height":13}},{"id":"697662e6-60cb-40b8-8bad-58219117e93e","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":187,"box":{"x":101,"y":91,"width":743,"height":12}},{"id":"81062081-5cbe-4c4a-8799-13b726941546","block_type":"box","text":"designated as a nationally recognized statistical rating organization (“NRSRO”) by the Securities and Exchange","page_number":187,"box":{"x":69,"y":106,"width":787,"height":12}},{"id":"7f2bf163-0fba-4509-add3-2bdd57209efb","block_type":"box","text":"Commission (“SEC”). While NRSROs may from time to time revise such ratings, they under take no obligation to do","page_number":187,"box":{"x":69,"y":121,"width":817,"height":12}},{"id":"f6e93581-d5ca-4224-8394-d89b7f3a2eaf","block_type":"box","text":"so, and the ratings given to securities at issuance do not necessarily represent ratings which would be given to these","page_number":187,"box":{"x":69,"y":137,"width":837,"height":11}},{"id":"7ee96488-3d61-48ef-a110-8352201132d1","block_type":"box","text":"securities on a par ticular subsequent date.","page_number":187,"box":{"x":69,"y":152,"width":306,"height":11}},{"id":"0ea92a22-5478-4995-9649-044bbdc115ba","block_type":"box","text":"NRSROs may rate specific investments (","page_number":187,"box":{"x":102,"y":174,"width":286,"height":12}},{"id":"32672de2-fb52-4063-9153-f9ac8cb00a36","block_type":"box","text":"e.g.","page_number":187,"box":{"x":390,"y":176,"width":25,"height":10}},{"id":"2dc2b882-3cff-4b11-8f3b-a872596a7699","block_type":"box","text":", bonds), issuers (","page_number":187,"box":{"x":417,"y":175,"width":128,"height":10}},{"id":"11bd5eed-5d8f-40f8-9caf-2708c222641a","block_type":"box","text":"e.g.","page_number":187,"box":{"x":547,"y":176,"width":25,"height":10}},{"id":"9c95280b-1257-44f2-a38e-78d0a1f76842","block_type":"box","text":", corporations, governments and financial","page_number":187,"box":{"x":574,"y":174,"width":293,"height":12}},{"id":"463c39e1-3a91-426e-b0e4-6bc2d4219f13","block_type":"box","text":"institutions) and/or programs (","page_number":187,"box":{"x":70,"y":190,"width":217,"height":11}},{"id":"8b392774-b869-464d-a24b-7422244277ea","block_type":"box","text":"e.g.","page_number":187,"box":{"x":289,"y":191,"width":25,"height":10}},{"id":"88222e50-c776-4fd9-987c-a2d11c7da75b","block_type":"box","text":", commercial paper programs). However, cer tain types of investments may not be","page_number":187,"box":{"x":317,"y":189,"width":578,"height":12}},{"id":"85c4e401-81a3-4b0d-b4df-894bc4ea5ff0","block_type":"box","text":"rated by NRSROs, such as cer tain government/sovereign obligations, US agency securities, commercial paper, time","page_number":187,"box":{"x":69,"y":205,"width":826,"height":11}},{"id":"bc4f2bab-f7d2-422a-b80e-3694b50bfa50","block_type":"box","text":"deposits at financial institutions, and derivative instruments such as credit default swaps. For these types of","page_number":187,"box":{"x":69,"y":220,"width":777,"height":11}},{"id":"6041d804-aaf8-4cfa-86fb-a88ff90a992d","block_type":"box","text":"investments, as well as US Treasury securities (some of which are not rated), where an NRSRO has not rated the","page_number":187,"box":{"x":70,"y":235,"width":807,"height":11}},{"id":"0479e60d-8fe3-4f3b-b00f-fc3f37ac9173","block_type":"box","text":"specific investment but has rated the investment’s issuer, program, financial institution or underlying reference","page_number":187,"box":{"x":69,"y":250,"width":791,"height":11}},{"id":"d65de2c3-1f8e-4c0d-9df1-a94c8e252fa4","block_type":"box","text":"asset, BlackRock Advisors, LLC, BlackRock Fund Advisors or their respective affiliates (“BlackRock”) may consider","page_number":187,"box":{"x":69,"y":265,"width":816,"height":11}},{"id":"b46e8392-0117-40df-abfb-de96a03052e2","block_type":"box","text":"the investment to have the same NRSRO rating as its issuer, program, financial institution or underlying reference","page_number":187,"box":{"x":68,"y":280,"width":812,"height":12}},{"id":"384af9b2-8a21-4bc9-b66b-8371358f6bc3","block_type":"box","text":"asset, as applicable. In the case of municipal securities, where one NRSRO provides multiple ratings for the same","page_number":187,"box":{"x":69,"y":295,"width":815,"height":12}},{"id":"8f4a88a2-49d9-4af0-80ac-3b186e3d24ea","block_type":"box","text":"security (","page_number":187,"box":{"x":69,"y":311,"width":63,"height":11}},{"id":"1a5ab5a4-4f96-4e29-bc9e-dc4e27a0ac9e","block_type":"box","text":"e.g.","page_number":187,"box":{"x":134,"y":312,"width":25,"height":10}},{"id":"bbb7cd41-32cd-4dd8-9d68-96ebf0ffde64","block_type":"box","text":", “underlying,” “insured” and/or “enhanced” ratings), BlackRock may consider the security to have the","page_number":187,"box":{"x":161,"y":311,"width":730,"height":11}},{"id":"233fe1f9-445d-4834-afd1-0387128f45c3","block_type":"box","text":"highest of the multiple ratings.","page_number":187,"box":{"x":69,"y":326,"width":216,"height":11}},{"id":"d39df286-84c4-4d3e-bb98-ac97587522f3","block_type":"box","text":"New issue securities (regardless of type) may not be rated by an NRSRO at the time of their initial offering.","page_number":187,"box":{"x":102,"y":348,"width":760,"height":12}},{"id":"7476060f-f91d-4637-9543-b03e707cbef3","block_type":"box","text":"Preliminary prospectuses or term sheets for new issue securities may include an expected rating for the security (as","page_number":187,"box":{"x":69,"y":363,"width":830,"height":12}},{"id":"e9c067e5-6fa7-44e9-9738-4d8d13223d9a","block_type":"box","text":"determined by the underwriter and/or issuer) or an NRSRO rating for the issuer of the security. If applicable, when","page_number":187,"box":{"x":69,"y":378,"width":812,"height":12}},{"id":"2be97d22-6976-4999-b19e-da73db03daba","block_type":"box","text":"deciding whether to purchase a new issue security that has not yet been rated by an NRSRO, BlackRock may","page_number":187,"box":{"x":69,"y":394,"width":776,"height":11}},{"id":"cd98037d-d8ed-4742-b9a4-d7d8d3a744ec","block_type":"box","text":"attribute an expected rating to the security based on: (i) the expected rating of the security set for th in the","page_number":187,"box":{"x":69,"y":409,"width":756,"height":11}},{"id":"c74a0d23-ac4f-4cad-af0e-7a648982a3de","block_type":"box","text":"preliminary prospectus or term sheet for the security; (ii) the NRSRO’s rating for the issuer of the security set for th in","page_number":187,"box":{"x":70,"y":424,"width":835,"height":11}},{"id":"cc114d0d-ac43-4e23-851e-800282aa5f03","block_type":"box","text":"the preliminary prospectus or term sheet for the security; or (iii) with respect to asset-backed securities, the rating of","page_number":187,"box":{"x":68,"y":439,"width":836,"height":11}},{"id":"df126b37-87bd-48fe-a08c-a207cb222e80","block_type":"box","text":"a prior issuance having a similar structure or the same sponsor.","page_number":187,"box":{"x":69,"y":454,"width":456,"height":11}},{"id":"0928736d-9197-48d0-9dca-aeb8eb3c1e4e","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":187,"box":{"x":101,"y":477,"width":771,"height":11}},{"id":"7bd43f78-5858-46ea-8fde-51fd56b2b3bb","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":187,"box":{"x":69,"y":492,"width":832,"height":11}},{"id":"41a0adfa-cd5c-403e-8e66-31d5f708616f","block_type":"box","text":"having been determined by the index provider as meeting its credit ratings eligibility criteria. The credit ratings","page_number":187,"box":{"x":69,"y":507,"width":782,"height":11}},{"id":"82e4c60c-3f52-4947-972c-9ff185b15609","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":187,"box":{"x":70,"y":522,"width":796,"height":11}},{"id":"87e10d74-8fa9-4619-8c27-86c20bb288ba","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":187,"box":{"x":70,"y":537,"width":811,"height":12}},{"id":"4996f0df-d6aa-414b-acaa-580e39288d45","block_type":"box","text":"differs from the credit rating specified in its index methodology in various circumstances, including where a security is","page_number":187,"box":{"x":69,"y":552,"width":840,"height":12}},{"id":"c75273ef-4222-49e4-ad71-da6d23087043","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":187,"box":{"x":69,"y":567,"width":824,"height":12}},{"id":"9e9b7fc2-85a1-4521-bdb7-199c1e018f33","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":187,"box":{"x":68,"y":583,"width":781,"height":11}},{"id":"a8bfa4d9-465a-4ee1-98d3-434fefd1f55c","block_type":"box","text":"Fixed-income securities which are unrated may expose the investor to risks with respect to capacity to pay","page_number":187,"box":{"x":102,"y":606,"width":756,"height":10}},{"id":"7d96375d-5ef0-4961-8cbf-b0ff160e6829","block_type":"box","text":"interest or repay principal which are similar to the risks of lower-rated speculative bonds (although BlackRock may","page_number":187,"box":{"x":70,"y":620,"width":811,"height":12}},{"id":"73b0b0c8-c535-4d06-90a3-b974058398d3","block_type":"box","text":"deem such unrated securities to be of higher quality). Evaluation of these securities is dependent on BlackRock’s","page_number":187,"box":{"x":69,"y":635,"width":809,"height":12}},{"id":"c2d4da79-0f16-48c7-8492-3e5464e7634c","block_type":"box","text":"judgment, analysis and experience in the evaluation of such securities.","page_number":187,"box":{"x":67,"y":651,"width":506,"height":11}},{"id":"449cfdd5-2073-45f4-b727-1cd005df2a2a","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":187,"box":{"x":102,"y":673,"width":776,"height":12}},{"id":"6df5856d-f7fd-41b6-bf2c-5667abe3e3fd","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":187,"box":{"x":69,"y":688,"width":818,"height":12}},{"id":"f4736a69-8976-49d0-9bcf-a1776dfaa503","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":187,"box":{"x":102,"y":711,"width":799,"height":11}},{"id":"39c8e1bb-60c7-4554-976f-450ac581ebb7","block_type":"box","text":"Fitch. Other terms used to describe such securities include “lower rated bonds,” “non-investment grade bonds,”","page_number":187,"box":{"x":70,"y":726,"width":798,"height":11}},{"id":"21921500-6f03-4961-9662-20e52f70f9e2","block_type":"box","text":"“below investment grade bonds,” and “junk bonds.”","page_number":187,"box":{"x":70,"y":742,"width":368,"height":11}},{"id":"53c35e41-97a7-4c4b-a074-3484c476b60c","block_type":"box","text":"The descriptions below relate to general long-term and shor t-term obligations of an issuer.","page_number":187,"box":{"x":101,"y":764,"width":643,"height":11}},{"id":"5c295260-1003-40a2-8dad-1b2288f5b07d","block_type":"box","text":"A Description of Moody’s Investors Service, Inc.’s (“Moody’s”) Global Rating Scales","page_number":187,"box":{"x":68,"y":794,"width":616,"height":11}},{"id":"22f7e048-93d4-4e59-8ee7-1aab38996f69","block_type":"box","text":"Credit ratings are assigned on Moody’s global long-term and shor t-term rating scales and are forward-looking","page_number":187,"box":{"x":102,"y":817,"width":777,"height":11}},{"id":"d96a8dda-7222-49b1-aede-af295f488878","block_type":"box","text":"opinions of the relative credit risks of financial obligations issued by non-financial corporates, financial institutions,","page_number":187,"box":{"x":69,"y":832,"width":818,"height":11}},{"id":"310c3d9d-e734-4d89-baf6-01bf4f1d3c14","block_type":"box","text":"structured finance vehicles, project finance vehicles, and public sector entities. Moody’s defines credit risk as the","page_number":187,"box":{"x":69,"y":847,"width":812,"height":11}},{"id":"05269b39-3f8a-48de-893b-53972b751c7f","block_type":"box","text":"risk that an entity may not meet its contractual financial obligations as they come due and any estimated financial","page_number":187,"box":{"x":69,"y":862,"width":812,"height":12}},{"id":"6ac5528b-1b03-49b6-abef-8922b00d483b","block_type":"box","text":"loss in the event of default or impairment. The contractual financial obligations addressed by Moody’s ratings are","page_number":187,"box":{"x":70,"y":877,"width":807,"height":12}},{"id":"dda4475c-9430-4308-b947-f14414680a96","block_type":"box","text":"those that call for, without regard to enforceability, the payment of an ascer tainable amount, which may vary based","page_number":187,"box":{"x":68,"y":892,"width":821,"height":12}},{"id":"d55c407b-69f0-4d2b-9c9b-a16bab8ef2ab","block_type":"box","text":"upon standard sources of variation (","page_number":187,"box":{"x":69,"y":908,"width":257,"height":11}},{"id":"b94d1c29-0f50-4ac3-afed-e7422ce665f7","block_type":"box","text":"e.g.","page_number":187,"box":{"x":328,"y":909,"width":25,"height":10}},{"id":"31a7c615-c997-4c1a-b0f3-9b7222cf0044","block_type":"box","text":", floating interest rates), by an ascer tainable date. Moody’s rating addresses","page_number":187,"box":{"x":355,"y":908,"width":548,"height":11}},{"id":"452f25c5-51e8-4822-a272-4dbeefeac518","block_type":"box","text":"A-1","page_number":187,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"eaffcc49-f48c-41f6-9e88-90e9a8579797","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":187,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9236f50d-8bbe-4707-83df-2ab6d9cac480","block_type":"box","text":"the issuer’s ability to obtain cash sufficient to service the obligation, and its willingness to pay. Moody’s ratings do","page_number":188,"box":{"x":68,"y":45,"width":821,"height":11}},{"id":"7afcd336-6b36-4d10-9926-73bb38af1203","block_type":"box","text":"not address non-standard sources of variation in the amount of the principal obligation (","page_number":188,"box":{"x":69,"y":60,"width":627,"height":11}},{"id":"e8747f6d-58fd-40fc-8c8e-aaa7f793b7e4","block_type":"box","text":"e.g.","page_number":188,"box":{"x":697,"y":61,"width":25,"height":10}},{"id":"0013a3b7-dc6e-433e-a83b-ce71ea81f726","block_type":"box","text":", equity indexed), absent","page_number":188,"box":{"x":725,"y":60,"width":174,"height":11}},{"id":"4429a625-2786-43b4-8d28-0a999bb5f814","block_type":"box","text":"an express statement to the contrary in a press release accompanying an initial rating. Long-term ratings are","page_number":188,"box":{"x":69,"y":75,"width":777,"height":11}},{"id":"c21f1164-57b7-45bb-9bb4-f2c9621e3ee1","block_type":"box","text":"assigned to issuers or obligations with an original maturity of eleven months or more and reflect both on the","page_number":188,"box":{"x":69,"y":90,"width":771,"height":11}},{"id":"39152aae-32be-4cc0-baeb-9d02da2c0da2","block_type":"box","text":"likelihood of a default or impairment on contractual financial obligations and the expected financial loss suffered in","page_number":188,"box":{"x":70,"y":105,"width":819,"height":11}},{"id":"21d00dbd-20c7-46a2-96f6-8b41b909037d","block_type":"box","text":"the event of default or impairment. Shor t-term ratings are assigned for obligations with an original maturity of thir teen","page_number":188,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"8ebd2680-7bfe-49b6-ab42-2b8d54ac0fcb","block_type":"box","text":"months or less and reflect both on the likelihood of a default or impairment on contractual financial obligations and","page_number":188,"box":{"x":69,"y":135,"width":822,"height":12}},{"id":"8328d4d1-3b1d-4059-9118-a9eb0874e8ab","block_type":"box","text":"the expected financial loss suffered in the event of default or impairment. Moody’s issues ratings at the issuer level","page_number":188,"box":{"x":68,"y":150,"width":829,"height":12}},{"id":"f36dc969-ba6a-4889-93fa-7e8dee004d41","block_type":"box","text":"and instrument level on both the long-term scale and the shor t-term scale. Typically, ratings are made publicly","page_number":188,"box":{"x":69,"y":166,"width":784,"height":11}},{"id":"98b60557-6207-435d-ba2e-734432973fb7","block_type":"box","text":"available although private and unpublished ratings may also be assigned.","page_number":188,"box":{"x":69,"y":181,"width":521,"height":11}},{"id":"c982d449-ba07-4bb2-9900-48886897b938","block_type":"box","text":"Moody’s differentiates structured finance ratings from fundamental ratings (","page_number":188,"box":{"x":102,"y":203,"width":542,"height":12}},{"id":"ce2fe778-3b91-4dd3-b6ca-11ed6e3b3fb2","block_type":"box","text":"i.e.","page_number":188,"box":{"x":646,"y":204,"width":20,"height":8}},{"id":"7d96e015-a3fe-45c7-8e02-f2a03e09697f","block_type":"box","text":", ratings on nonfinancial","page_number":188,"box":{"x":669,"y":203,"width":169,"height":12}},{"id":"d1fdecb3-464c-421e-b3b9-eceb0940604c","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":188,"box":{"x":69,"y":218,"width":837,"height":12}},{"id":"7e5a6dcd-71a3-4008-ba05-4e472a9cb93e","block_type":"box","text":"finance ratings. The addition of (sf) to structured finance ratings should eliminate any presumption that such ratings","page_number":188,"box":{"x":68,"y":234,"width":828,"height":11}},{"id":"9675c89a-4f89-4688-8298-ac15c0622562","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":188,"box":{"x":69,"y":249,"width":832,"height":11}},{"id":"31255962-a272-4e4f-85bd-009094ad7e16","block_type":"box","text":"security ratings indicates that otherwise similarly rated structured finance and fundamental securities may have","page_number":188,"box":{"x":69,"y":264,"width":797,"height":11}},{"id":"d4fc18d4-c26d-4f1f-888b-535e9213152d","block_type":"box","text":"different risk characteristics. Through its current methodologies, however, Moody’s aspires to achieve broad","page_number":188,"box":{"x":69,"y":279,"width":771,"height":11}},{"id":"5a502c57-860b-467a-a02f-47148dfe81d7","block_type":"box","text":"expected equivalence in structured finance and fundamental rating per formance when measured over a long period","page_number":188,"box":{"x":69,"y":294,"width":821,"height":11}},{"id":"60add041-da5f-440f-a790-4d5314280f7c","block_type":"box","text":"of time.","page_number":188,"box":{"x":69,"y":309,"width":53,"height":9}},{"id":"8424fe13-403c-4689-832a-4eed3ba76618","block_type":"box","text":"Description of Moody’s Global Long-Term Rating Scale","page_number":188,"box":{"x":69,"y":339,"width":395,"height":12}},{"id":"6983a4bd-706d-468e-9633-1f8088ae25b0","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":188,"box":{"x":68,"y":367,"width":815,"height":11}},{"id":"33e7f8dc-cd43-43f8-a056-472e0383de7d","block_type":"box","text":"risk.","page_number":188,"box":{"x":197,"y":383,"width":28,"height":8}},{"id":"897c32d9-4240-4200-8ce7-8a9847f96740","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":188,"box":{"x":68,"y":402,"width":773,"height":12}},{"id":"7047e7ec-debf-4909-9792-d5d9d07fd3ea","block_type":"box","text":"A Obligations rated A are judged to be upper-medium grade and are subject to low credit risk.","page_number":188,"box":{"x":68,"y":423,"width":776,"height":11}},{"id":"29dd4e0f-023c-48bd-81fb-e9b43e0042cd","block_type":"box","text":"Baa Obligations rated Baa are judged to be medium-grade and subject to moderate credit risk and as","page_number":188,"box":{"x":70,"y":443,"width":813,"height":11}},{"id":"40c641b7-c854-42af-9de0-e6c95d88c66a","block_type":"box","text":"such may possess cer tain speculative characteristics.","page_number":188,"box":{"x":196,"y":458,"width":385,"height":11}},{"id":"c121951b-c9e2-4167-85e3-84d942c8b7c4","block_type":"box","text":"Ba Obligations rated Ba are judged to be speculative and are subject to substantial credit risk.","page_number":188,"box":{"x":70,"y":478,"width":775,"height":11}},{"id":"3468b1ac-9ccb-4fc0-80fe-5abfe0df5118","block_type":"box","text":"B Obligations rated B are considered speculative and are subject to high credit risk.","page_number":188,"box":{"x":70,"y":498,"width":707,"height":11}},{"id":"d790ec4f-92cb-44ee-8db7-0d877905a781","block_type":"box","text":"Caa Obligations rated Caa are judged to be speculative of poor standing and are subject to very high","page_number":188,"box":{"x":69,"y":518,"width":810,"height":12}},{"id":"03c4aa68-592f-4601-8d9f-1bed977d9cb0","block_type":"box","text":"credit risk.","page_number":188,"box":{"x":196,"y":534,"width":74,"height":8}},{"id":"db1a0a92-8337-4527-b47a-89fe28586074","block_type":"box","text":"Ca Obligations rated Ca are highly speculative and are likely in, or very near, default, with some","page_number":188,"box":{"x":69,"y":554,"width":783,"height":11}},{"id":"8306a504-0df4-4e48-9978-3b0347c36a46","block_type":"box","text":"prospect of recovery of principal and interest.","page_number":188,"box":{"x":197,"y":569,"width":322,"height":11}},{"id":"cd1618c5-47eb-4194-a13b-6d992f5409ec","block_type":"box","text":"C Obligations rated C are the lowest rated and are typically in default, with little prospect for recovery","page_number":188,"box":{"x":69,"y":589,"width":834,"height":11}},{"id":"38a63c23-264f-4eff-afa7-4c3cb217378b","block_type":"box","text":"of principal or interest.","page_number":188,"box":{"x":196,"y":604,"width":160,"height":11}},{"id":"c175d7c6-658f-4a61-82b7-81448ff06250","block_type":"box","text":"Note:","page_number":188,"box":{"x":102,"y":624,"width":37,"height":9}},{"id":"6c61d613-e473-4744-a186-85a5f0b6f337","block_type":"box","text":"Moody’s appends numerical modifiers 1, 2, and 3 to each generic rating classification from Aa through","page_number":188,"box":{"x":146,"y":624,"width":731,"height":11}},{"id":"36c726a7-6962-4b2c-811d-18d988aac371","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":188,"box":{"x":69,"y":639,"width":831,"height":12}},{"id":"052cde5b-8530-48a2-b0fa-0279bdc418d4","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":188,"box":{"x":70,"y":654,"width":829,"height":12}},{"id":"ed68e737-d41a-42a2-86c5-e412f1c11dfe","block_type":"box","text":"Additionally, a “(hyb)” indicator is appended to all ratings of hybrid securities issued by banks, insurers, finance","page_number":188,"box":{"x":68,"y":669,"width":795,"height":12}},{"id":"df4cb524-cb80-4d29-860a-57eba34ab4fc","block_type":"box","text":"companies, and securities firms.","page_number":188,"box":{"x":69,"y":685,"width":232,"height":11}},{"id":"1be03885-e6e0-4a82-9f55-66091eb68dd7","block_type":"box","text":"By their terms, hybrid securities allow for the omission of scheduled dividends, interest, or principal payments,","page_number":188,"box":{"x":102,"y":707,"width":787,"height":11}},{"id":"6d711954-7f07-4584-987d-af207a4ae31e","block_type":"box","text":"which can potentially result in impairment if such an omission occurs. Hybrid securities may also be subject to","page_number":188,"box":{"x":68,"y":722,"width":788,"height":12}},{"id":"bf1670ce-1f4e-4d8b-a2c6-f7c39741287a","block_type":"box","text":"contractually allowable write-downs of principal that could result in impairment. Together with the hybrid indicator, the","page_number":188,"box":{"x":69,"y":738,"width":833,"height":11}},{"id":"3a791eff-529b-4316-b82d-5827f0578cc7","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":188,"box":{"x":70,"y":753,"width":809,"height":11}},{"id":"2b12d0f0-d9b1-47bc-88eb-f14627afef0d","block_type":"box","text":"that security.","page_number":188,"box":{"x":68,"y":768,"width":91,"height":11}},{"id":"7082d30d-472c-4692-ad6b-70d990278697","block_type":"box","text":"Description of Moody’s Global Short-Term Rating Scale","page_number":188,"box":{"x":69,"y":798,"width":400,"height":11}},{"id":"7cc7f0dc-610f-4782-8216-f563ea811067","block_type":"box","text":"P-1 Ratings of Prime-1 reflect a superior ability to repay shor t-term obligations.","page_number":188,"box":{"x":69,"y":826,"width":658,"height":11}},{"id":"b38a11c7-8cf0-4c5b-a860-91c8366a2022","block_type":"box","text":"P-2 Ratings of Prime-2 reflect a strong ability to repay shor t-term obligations.","page_number":188,"box":{"x":69,"y":846,"width":645,"height":11}},{"id":"ec950060-377c-4680-b0b8-b604896ba9b0","block_type":"box","text":"P-3 Ratings of Prime-3 reflect an acceptable ability to repay shor t-term obligations.","page_number":188,"box":{"x":69,"y":866,"width":686,"height":11}},{"id":"bae00379-430f-43e3-b62f-317b9bd8a66a","block_type":"box","text":"NP Issuers (or suppor ting institutions) rated Not Prime do not fall within any of the Prime rating","page_number":188,"box":{"x":70,"y":886,"width":778,"height":12}},{"id":"ba2bbf69-3f5b-43b2-8bf3-aec6c94369ce","block_type":"box","text":"categories.","page_number":188,"box":{"x":196,"y":902,"width":77,"height":11}},{"id":"82562475-8b1a-40bd-a820-291aa2479ff1","block_type":"box","text":"A-2","page_number":188,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"c96ea95d-3cd5-4129-9130-5efdd115f546","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":188,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"aa814063-8487-4313-90e3-c3e6efa05e91","block_type":"box","text":"Description of Moody’s U.S. Municipal Short-Term Debt and Demand Obligation Ratings","page_number":189,"box":{"x":69,"y":45,"width":637,"height":11}},{"id":"36c6baba-385b-4643-a1e1-e3276dde7b11","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":189,"box":{"x":102,"y":67,"width":784,"height":12}},{"id":"d538b0c3-49dd-4ffe-85a2-e6016180ba4f","block_type":"box","text":"nonprofits. These commercial paper programs may be backed by external letters of credit or liquidity facilities, or by","page_number":189,"box":{"x":69,"y":82,"width":824,"height":12}},{"id":"211b2957-d773-4e9f-adca-7d9343c7a4fd","block_type":"box","text":"an issuer’s self-liquidity.","page_number":189,"box":{"x":69,"y":98,"width":170,"height":11}},{"id":"9c867e8b-0fce-4e0e-babf-b5ef34f6e083","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":189,"box":{"x":102,"y":120,"width":736,"height":12}},{"id":"b1f93780-4599-4d78-88fb-e748eaf17fd5","block_type":"box","text":"Municipal Investment Grade (“MIG”) and Variable Municipal Investment Grade (“VMIG”) scales discussed below.","page_number":189,"box":{"x":70,"y":135,"width":796,"height":11}},{"id":"50c6365a-3b99-4506-afff-99bbc3bd64c8","block_type":"box","text":"MIG Ratings","page_number":189,"box":{"x":102,"y":158,"width":85,"height":11}},{"id":"3b167f57-68f5-45e0-ab22-e4ca945051f9","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":189,"box":{"x":102,"y":181,"width":803,"height":11}},{"id":"60543487-f253-49b2-a3aa-7506db98cbcb","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":189,"box":{"x":68,"y":196,"width":823,"height":11}},{"id":"73362c6f-f33a-47f1-8ef5-02085f63a8f8","block_type":"box","text":"scale for bond anticipation notes with maturities of up to five years.","page_number":189,"box":{"x":69,"y":211,"width":480,"height":11}},{"id":"88c98ac0-98c3-4fae-84d3-70cf4c83346a","block_type":"box","text":"MIG Scale","page_number":189,"box":{"x":102,"y":234,"width":71,"height":9}},{"id":"a473543c-d7ac-4b3e-8f9d-9829eaa1e003","block_type":"box","text":"MIG 1 This designation denotes superior credit quality. Excellent protection is afforded by established","page_number":189,"box":{"x":70,"y":261,"width":802,"height":12}},{"id":"2e882414-2598-456e-92e8-04630bf488cc","block_type":"box","text":"cash flows, highly reliable liquidity suppor t, or demonstrated broad-based access to the market for","page_number":189,"box":{"x":196,"y":276,"width":703,"height":12}},{"id":"9b6d7a2d-8009-48c1-8c28-1bceb629dc35","block_type":"box","text":"refinancing.","page_number":189,"box":{"x":197,"y":292,"width":80,"height":11}},{"id":"eead1717-f2a4-4691-be7f-9f0ee45756eb","block_type":"box","text":"MIG 2 This designation denotes strong credit quality. Margins of protection are ample, although not as","page_number":189,"box":{"x":70,"y":312,"width":809,"height":11}},{"id":"256a5121-679c-4b18-b08d-ad0cae505ca2","block_type":"box","text":"large as in the preceding group.","page_number":189,"box":{"x":197,"y":327,"width":224,"height":11}},{"id":"13fae0a2-47b1-4282-a997-b1c1eddf1969","block_type":"box","text":"MIG 3 This designation denotes acceptable credit quality. Liquidity and cash-flow protection may be","page_number":189,"box":{"x":70,"y":347,"width":785,"height":11}},{"id":"96249285-33de-473c-a5dd-cf2b0b5753fe","block_type":"box","text":"narrow, and market access for refinancing is likely to be less well-established.","page_number":189,"box":{"x":197,"y":362,"width":554,"height":11}},{"id":"ebc2ec8f-2f34-48b9-8468-75bfe6a48714","block_type":"box","text":"SG This designation denotes speculative-grade credit quality. Debt instruments in this category may","page_number":189,"box":{"x":69,"y":382,"width":813,"height":12}},{"id":"9da60a3a-6878-44cf-9b69-271af534630a","block_type":"box","text":"lack sufficient margins of protection.","page_number":189,"box":{"x":197,"y":397,"width":259,"height":12}},{"id":"0a9c3e79-ca91-4069-9a82-c570fc6a4065","block_type":"box","text":"VMIG Ratings","page_number":189,"box":{"x":68,"y":425,"width":100,"height":11}},{"id":"04493860-4b00-4b64-b147-29edc17eb7c8","block_type":"box","text":"In the case of variable rate demand obligations (“VRDOs”), a two-component rating is assigned. The components","page_number":189,"box":{"x":102,"y":448,"width":804,"height":11}},{"id":"5e79ce57-7574-4a4c-a728-1fa60495beba","block_type":"box","text":"are a long-term rating and a shor t-term payment obligation rating. The long-term rating addresses the issuer’s ability","page_number":189,"box":{"x":69,"y":463,"width":829,"height":11}},{"id":"9eaef441-517c-4a9b-8bde-9246e6764bad","block_type":"box","text":"to meet scheduled principal and interest payments. The shor t-term payment obligation rating addresses the ability of","page_number":189,"box":{"x":68,"y":478,"width":836,"height":11}},{"id":"6f68f511-e4b4-4ca1-b4c6-95771689aa42","block_type":"box","text":"the issuer or the liquidity provider meet any purchase-price payment obligation resulting from optional tenders (“on","page_number":189,"box":{"x":68,"y":493,"width":817,"height":11}},{"id":"98b2be0e-94ea-4dd1-90e7-9992da1f8324","block_type":"box","text":"demand”) and/or mandatory tenders of the VRDO. The shor t-term demand obligation rating uses the VMIG scale.","page_number":189,"box":{"x":69,"y":508,"width":807,"height":12}},{"id":"ebd8926a-8645-4a8b-b42e-694274d17a43","block_type":"box","text":"VMIG ratings with liquidity suppor t use as an input the shor t-term Counterpar ty Risk Assessment of the suppor t","page_number":189,"box":{"x":68,"y":523,"width":800,"height":12}},{"id":"651887f0-765c-49e1-bd6b-4e8b1064c9b1","block_type":"box","text":"provider, or the long-term rating of the underlying obligor in the absence of third par ty liquidity suppor t. Transitions of","page_number":189,"box":{"x":70,"y":538,"width":832,"height":12}},{"id":"62d72390-8fa1-4e62-a1c7-ae76dc80d149","block_type":"box","text":"VMIG ratings of demand obligations with conditional liquidity suppor t differ from transitions on the Prime scale to","page_number":189,"box":{"x":68,"y":554,"width":807,"height":11}},{"id":"2c8ca16b-dbf9-4f0c-be43-c8714540aeff","block_type":"box","text":"reflect the risk that external liquidity suppor t will terminate if the issuer’s long-term rating drops below investment","page_number":189,"box":{"x":69,"y":569,"width":812,"height":11}},{"id":"fa09e4fb-7c1a-4d16-864d-2508c20dba35","block_type":"box","text":"grade.","page_number":189,"box":{"x":68,"y":584,"width":43,"height":11}},{"id":"f4c82da5-80bd-4a3e-a10b-cb99b9d9fbdf","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":189,"box":{"x":102,"y":606,"width":807,"height":12}},{"id":"709f1733-f4c8-4ee0-b720-beecdebce8e5","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":189,"box":{"x":70,"y":622,"width":833,"height":11}},{"id":"c90c0708-cdb2-436a-a475-5b26f083f50d","block_type":"box","text":"payable only with remarketing proceeds, the shor t-term demand obligation rating is “NR”.","page_number":189,"box":{"x":70,"y":637,"width":635,"height":11}},{"id":"90f0a74c-9468-403b-8dd5-e7d5b2a33292","block_type":"box","text":"Industrial development bonds in the US where the obligor is a corporate may carry a VMIG rating that reflects","page_number":189,"box":{"x":102,"y":659,"width":778,"height":12}},{"id":"59600e3b-9e7c-45c1-8b98-91359e4731eb","block_type":"box","text":"Moody’s view of the relative likelihood of default and loss. In these cases, liquidity assessment is based on the","page_number":189,"box":{"x":70,"y":675,"width":795,"height":11}},{"id":"7c7d847c-931f-4719-9192-c28f5f6d9556","block_type":"box","text":"liquidity of the corporate obligor.","page_number":189,"box":{"x":70,"y":690,"width":226,"height":11}},{"id":"836fec94-44c2-4465-aa1c-e1a16af8ba75","block_type":"box","text":"VMIG Scale","page_number":189,"box":{"x":101,"y":712,"width":81,"height":9}},{"id":"f9e2037b-ab2a-457a-a044-52cd314a1fa2","block_type":"box","text":"VMIG 1 This designation denotes superior credit quality. Excellent protection is afforded by the superior","page_number":189,"box":{"x":68,"y":740,"width":808,"height":11}},{"id":"3a5893e4-f93f-4b2b-a86c-1b2d611a36a5","block_type":"box","text":"shor t-term credit strength of the liquidity provider and structural and legal protections.","page_number":189,"box":{"x":196,"y":755,"width":613,"height":11}},{"id":"4d90f1f3-98af-4e24-951f-1e01f113e70e","block_type":"box","text":"VMIG 2 This designation denotes strong credit quality. Good protection is afforded by the strong shor t-term","page_number":189,"box":{"x":68,"y":775,"width":834,"height":12}},{"id":"967f39e0-0f7b-4858-b551-9a98d275c64f","block_type":"box","text":"credit strength of the liquidity provider and structural and legal protections.","page_number":189,"box":{"x":196,"y":790,"width":533,"height":12}},{"id":"74b5db94-5c30-41b6-b205-e94daced64f4","block_type":"box","text":"VMIG 3 This designation denotes acceptable credit quality. Adequate protection is afforded by the","page_number":189,"box":{"x":68,"y":811,"width":768,"height":11}},{"id":"a7055379-4ce5-40a4-b920-c41751f62f5d","block_type":"box","text":"satisfactory shor t-term credit strength of the liquidity provider and structural and legal protections.","page_number":189,"box":{"x":196,"y":826,"width":701,"height":11}},{"id":"4dbe003f-0e28-4bad-93f0-d295da8db9c8","block_type":"box","text":"SG This designation denotes speculative-grade credit quality. Demand features rated in this category","page_number":189,"box":{"x":69,"y":846,"width":820,"height":11}},{"id":"74a140c1-c6ef-4558-ae7a-44405f2f8506","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":189,"box":{"x":197,"y":861,"width":711,"height":11}},{"id":"c2e55d79-74d8-4c88-8745-10901e001c70","block_type":"box","text":"may lack the structural or legal protections.","page_number":189,"box":{"x":197,"y":876,"width":308,"height":11}},{"id":"8ac56b21-5ac6-4df4-9de3-9a7c53b8878c","block_type":"box","text":"A-3","page_number":189,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"a67e66c7-b849-40a6-a05a-24d26205f545","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":189,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9bcf68ee-54ba-4bd9-aae6-46edfec42a7f","block_type":"box","text":"Description of S&P Global Ratings (“S&P”), a Division of S&P Global Inc., Issue Credit Ratings","page_number":190,"box":{"x":69,"y":45,"width":691,"height":11}},{"id":"78a885c6-5979-48e5-932d-aa297382a983","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":190,"box":{"x":101,"y":67,"width":801,"height":12}},{"id":"ff0b2a31-9a66-4148-b40a-0ff1a737a9dc","block_type":"box","text":"specific financial obligation, a specific class of financial obligations, or a specific financial program (including ratings","page_number":190,"box":{"x":69,"y":82,"width":829,"height":12}},{"id":"383eebe0-0dd2-4be2-b35f-2cb6e6e4b354","block_type":"box","text":"on medium-term note programs and commercial paper programs). It takes into consideration the creditwor thiness of","page_number":190,"box":{"x":69,"y":98,"width":831,"height":11}},{"id":"f321d3f5-8305-40d4-aab6-9644c74daa95","block_type":"box","text":"guarantors, insurers, or other forms of credit enhancement on the obligation and takes into account the currency in","page_number":190,"box":{"x":68,"y":113,"width":823,"height":11}},{"id":"82858d4e-bdef-4e42-a9b9-50278abecf35","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":190,"box":{"x":68,"y":128,"width":841,"height":11}},{"id":"d19e773d-9692-41bb-b8fc-f93988bfa45c","block_type":"box","text":"its financial commitments as they come due, and this opinion may assess terms, such as collateral security and","page_number":190,"box":{"x":70,"y":143,"width":801,"height":11}},{"id":"66b72c74-f8a9-465e-bd07-4a79594f2d0a","block_type":"box","text":"subordination, which could affect ultimate payment in the event of default.","page_number":190,"box":{"x":69,"y":158,"width":530,"height":11}},{"id":"a3d53982-1a8c-4bcc-a791-63c1ddfe20d9","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":190,"box":{"x":102,"y":181,"width":796,"height":11}},{"id":"bd81a8d1-c4f4-433e-bcdd-0a5b917c2a0f","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":190,"box":{"x":68,"y":196,"width":825,"height":11}},{"id":"79a05242-d2b0-4647-b389-f86c1d17fe33","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":190,"box":{"x":69,"y":211,"width":832,"height":11}},{"id":"234d185b-4206-4cd2-8506-9e2c9712d9a4","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":190,"box":{"x":70,"y":226,"width":826,"height":11}},{"id":"a4af771a-53a7-4a31-a1de-48414f51eaa0","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":190,"box":{"x":69,"y":241,"width":823,"height":11}},{"id":"843636d8-4764-4d18-8fa9-f50b5c694dd2","block_type":"box","text":"from these guidelines based on market practices.","page_number":190,"box":{"x":68,"y":256,"width":354,"height":12}},{"id":"8c67b30d-f0b2-41e1-ab07-c5b8560a76da","block_type":"box","text":"Issue credit ratings are based, in varying degrees, on S&P’s analysis of the following considerations:","page_number":190,"box":{"x":102,"y":279,"width":718,"height":11}},{"id":"6f48e80f-a170-49b9-ad9b-49ffee443c30","block_type":"box","text":"•","page_number":190,"box":{"x":69,"y":302,"width":6,"height":5}},{"id":"a028fc82-2c10-45ed-b780-30e392f4bf12","block_type":"box","text":"The likelihood of payment—the capacity and willingness of the obligor to meet its financial commitments on an","page_number":190,"box":{"x":101,"y":299,"width":790,"height":11}},{"id":"9d685297-027c-4de7-b941-8a56a421419a","block_type":"box","text":"obligation in accordance with the terms of the obligation;","page_number":190,"box":{"x":102,"y":314,"width":404,"height":12}},{"id":"87f6e075-2528-4c2e-aa16-ccb38d1eac11","block_type":"box","text":"•","page_number":190,"box":{"x":69,"y":337,"width":6,"height":5}},{"id":"03f869a1-e352-40ea-b332-8b3d343685d4","block_type":"box","text":"The nature and provisions of the financial obligation, and the promise S&P imputes; and","page_number":190,"box":{"x":101,"y":334,"width":629,"height":12}},{"id":"3af9bcce-4557-4080-bd84-abe92da82916","block_type":"box","text":"•","page_number":190,"box":{"x":69,"y":357,"width":6,"height":5}},{"id":"a4f0d27a-7d24-4ff5-b207-6de8a0a9ddee","block_type":"box","text":"The protection afforded by, and relative position of, the financial obligation in the event of a bankruptcy,","page_number":190,"box":{"x":101,"y":355,"width":738,"height":11}},{"id":"d6c19785-923b-4bab-ac8a-d8dd1c6c10ee","block_type":"box","text":"reorganization, or other arrangement under the laws of bankruptcy and other laws affecting creditors’ rights.","page_number":190,"box":{"x":102,"y":370,"width":770,"height":11}},{"id":"a8dda2aa-cb7f-4741-9a16-164254d96255","block_type":"box","text":"An issue rating is an assessment of default risk but may incorporate an assessment of relative seniority or","page_number":190,"box":{"x":101,"y":392,"width":763,"height":12}},{"id":"efe3543a-b80f-429f-ba71-b1852c85fc88","block_type":"box","text":"ultimate recovery in the event of default. Junior obligations are typically rated lower than senior obligations, to reflect","page_number":190,"box":{"x":69,"y":407,"width":833,"height":12}},{"id":"3659838f-1911-4bf4-ba87-901370ddad08","block_type":"box","text":"lower priority in bankruptcy, as noted above. (Such differentiation may apply when an entity has both senior and","page_number":190,"box":{"x":70,"y":423,"width":794,"height":11}},{"id":"f8c36e00-ab5d-468c-812d-311a4d455a9f","block_type":"box","text":"subordinated obligations, secured and unsecured obligations, or operating company and holding company","page_number":190,"box":{"x":69,"y":438,"width":754,"height":11}},{"id":"d6fc312e-3987-4246-9ee1-0ed518f1944f","block_type":"box","text":"obligations.)","page_number":190,"box":{"x":69,"y":453,"width":86,"height":11}},{"id":"cc16e15d-ac7f-4181-b654-dde303fde288","block_type":"box","text":"Long-Term Issue Credit Ratings*","page_number":190,"box":{"x":69,"y":483,"width":236,"height":11}},{"id":"11810dd3-7da1-4b79-b184-99b9d5c53168","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":190,"box":{"x":68,"y":511,"width":833,"height":11}},{"id":"277b4540-0453-4854-8511-f3c11c1c2bdb","block_type":"box","text":"financial commitments on the obligation is extremely strong.","page_number":190,"box":{"x":196,"y":526,"width":429,"height":11}},{"id":"f1dfcbb4-08f6-4279-9c8a-9baf7fafd467","block_type":"box","text":"AA An obligation rated ‘AA’ differs from the highest-rated obligations only to a small degree. The","page_number":190,"box":{"x":68,"y":546,"width":788,"height":11}},{"id":"d8690ee8-a857-43ff-86dc-c5204e10178f","block_type":"box","text":"obligor’s capacity to meet its financial commitments on the obligation is very strong.","page_number":190,"box":{"x":196,"y":561,"width":602,"height":11}},{"id":"df051c19-030a-461b-b268-558e35b22a20","block_type":"box","text":"A An obligation rated ‘A’ is somewhat more susceptible to the adverse effects of changes in","page_number":190,"box":{"x":68,"y":581,"width":770,"height":12}},{"id":"c3b6c867-8abf-4410-b3d6-18a1c92a2953","block_type":"box","text":"circumstances and economic conditions than obligations in higher-rated categories. However, the","page_number":190,"box":{"x":196,"y":597,"width":692,"height":11}},{"id":"01791f9a-d534-4224-b05a-b11b6233ea85","block_type":"box","text":"obligor’s capacity to meet its financial commitments on the obligation is still strong.","page_number":190,"box":{"x":196,"y":612,"width":598,"height":11}},{"id":"9011374a-227b-4834-9785-9d775b538e9c","block_type":"box","text":"BBB An obligation rated ‘BBB’ exhibits adequate protection parameters. However, adverse economic","page_number":190,"box":{"x":70,"y":632,"width":806,"height":11}},{"id":"910a89f5-77ca-4fb9-a965-b900b318058a","block_type":"box","text":"conditions or changing circumstances are more likely to weaken the obligor’s capacity to meet its","page_number":190,"box":{"x":196,"y":647,"width":694,"height":11}},{"id":"dd297c21-5cff-4ec9-bc8a-4cfa64fb2a9a","block_type":"box","text":"financial commitments on the obligation.","page_number":190,"box":{"x":196,"y":662,"width":289,"height":11}},{"id":"81056ae0-9f4e-476b-8aab-03abcbf3d173","block_type":"box","text":"BB,","page_number":190,"box":{"x":70,"y":682,"width":22,"height":11}},{"id":"79cf66c1-8cc0-4ce0-9ef8-2fb133ff54d7","block_type":"box","text":"B,","page_number":190,"box":{"x":70,"y":697,"width":12,"height":11}},{"id":"b1fb7d9e-272a-4715-b256-f4472ffaec21","block_type":"box","text":"CCC,","page_number":190,"box":{"x":69,"y":712,"width":33,"height":11}},{"id":"c5d5753f-9863-4b19-b197-3857433082f4","block_type":"box","text":"CC,","page_number":190,"box":{"x":69,"y":728,"width":23,"height":10}},{"id":"7b79f469-73d5-42fd-995f-de2ec0a89384","block_type":"box","text":"and C","page_number":190,"box":{"x":69,"y":743,"width":40,"height":9}},{"id":"675bf7c1-109f-478c-965f-7b3cc0e1da86","block_type":"box","text":"Obligations rated ‘BB’, ‘B’, ‘CCC’, ‘CC’, and ‘C’ are regarded as having significant speculative","page_number":190,"box":{"x":196,"y":682,"width":667,"height":11}},{"id":"5925f8cf-ec40-4b5f-b685-5f7c0c22e517","block_type":"box","text":"characteristics. ‘BB’ indicates the least degree of speculation and ‘C’ the highest. While such","page_number":190,"box":{"x":196,"y":697,"width":667,"height":12}},{"id":"7d566b4a-edff-4e9e-90ba-68ad93f1083c","block_type":"box","text":"obligations will likely have some quality and protective characteristics, these may be outweighed by","page_number":190,"box":{"x":196,"y":713,"width":707,"height":11}},{"id":"9d088e40-08bd-474b-98e3-06f6dc21e158","block_type":"box","text":"large uncer tainties or major exposure to adverse conditions.","page_number":190,"box":{"x":197,"y":728,"width":428,"height":11}},{"id":"78ce011a-fd08-4633-988f-064a9d0c38dc","block_type":"box","text":"BB An obligation rated ‘BB’ is less vulnerable to nonpayment than other speculative issues. However, it","page_number":190,"box":{"x":70,"y":763,"width":838,"height":11}},{"id":"7bd6bafb-519e-4e14-b2df-07ef8982d908","block_type":"box","text":"faces major ongoing uncer tainties or exposure to adverse business, financial, or economic","page_number":190,"box":{"x":196,"y":778,"width":646,"height":11}},{"id":"61f526cf-143a-42f0-a9cb-46c207271c51","block_type":"box","text":"conditions that could lead to the obligor’s inadequate capacity to meet its financial commitments","page_number":190,"box":{"x":196,"y":793,"width":692,"height":11}},{"id":"d501bf18-be2a-4d27-957c-a59377f4a15e","block_type":"box","text":"on the obligation.","page_number":190,"box":{"x":196,"y":808,"width":122,"height":11}},{"id":"49cdf8b8-81b5-4885-bfce-d80e92fa20dc","block_type":"box","text":"B An obligation rated ‘B’ is more vulnerable to nonpayment than obligations rated ‘BB’, but the obligor","page_number":190,"box":{"x":70,"y":828,"width":840,"height":12}},{"id":"a6046604-e6dd-4cdc-8216-467bd8d71e4a","block_type":"box","text":"currently has the capacity to meet its financial commitments on the obligation. Adverse business,","page_number":190,"box":{"x":196,"y":843,"width":695,"height":12}},{"id":"dfb3e41b-5930-4625-b243-3125b9697318","block_type":"box","text":"financial, or economic conditions will likely impair the obligor’s capacity or willingness to meet its","page_number":190,"box":{"x":196,"y":858,"width":691,"height":12}},{"id":"4393b3b2-aaff-44ac-9de6-9d76ab06a284","block_type":"box","text":"financial commitments on the obligation.","page_number":190,"box":{"x":196,"y":874,"width":289,"height":11}},{"id":"38558095-634a-4275-b805-42e198dfb8b5","block_type":"box","text":"A-4","page_number":190,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"be46f09f-2a4c-40b9-bba5-3192da6d510d","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":190,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7d9866c4-0faa-42e0-8f55-9872afe3e944","block_type":"box","text":"CCC An obligation rated ‘CCC’ is currently vulnerable to nonpayment and is dependent upon favorable","page_number":191,"box":{"x":69,"y":48,"width":816,"height":12}},{"id":"32ff8114-2b81-4dc4-b403-ddebce7ef506","block_type":"box","text":"business, financial, and economic conditions for the obligor to meet its financial commitments on","page_number":191,"box":{"x":196,"y":63,"width":695,"height":12}},{"id":"be1440c8-d993-42b7-b9c0-1f319a0101c8","block_type":"box","text":"the obligation. In the event of adverse business, financial, or economic conditions, the obligor is","page_number":191,"box":{"x":195,"y":79,"width":687,"height":11}},{"id":"610ce85f-94bb-437a-b45d-7f9c383096bb","block_type":"box","text":"not likely to have the capacity to meet its financial commitments on the obligation.","page_number":191,"box":{"x":197,"y":94,"width":586,"height":11}},{"id":"4b413490-d10e-431e-a710-5a77d3ef8fe2","block_type":"box","text":"CC An obligation rated ‘CC’ is currently highly vulnerable to nonpayment. The ‘CC’ rating is used when","page_number":191,"box":{"x":69,"y":114,"width":826,"height":11}},{"id":"cf189597-8b7f-40c8-ba27-ffa681bf33de","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":191,"box":{"x":196,"y":129,"width":692,"height":11}},{"id":"ff036805-81c5-4644-9878-92bc21bcb43e","block_type":"box","text":"anticipated time to default.","page_number":191,"box":{"x":196,"y":144,"width":191,"height":11}},{"id":"9848d491-25d2-43e8-bfcf-e223a97e3698","block_type":"box","text":"C An obligation rated ‘C’ is currently highly vulnerable to nonpayment, and the obligation is expected","page_number":191,"box":{"x":69,"y":164,"width":826,"height":12}},{"id":"f64782e3-1353-4736-b5c9-2e3218b3a3bc","block_type":"box","text":"to have lower relative seniority or lower ultimate recovery compared with obligations that are rated","page_number":191,"box":{"x":195,"y":180,"width":700,"height":11}},{"id":"fd7025fa-804d-4be3-97d6-d4699d1bb726","block_type":"box","text":"higher.","page_number":191,"box":{"x":197,"y":195,"width":45,"height":11}},{"id":"82c1fc8d-2f38-4e9d-9c47-f79ece2f3491","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":191,"box":{"x":70,"y":215,"width":789,"height":11}},{"id":"59d4b490-4f39-47cd-bf0b-f5b53379947d","block_type":"box","text":"instruments, the ‘D’ rating category is used when payments on an obligation are not made on the","page_number":191,"box":{"x":197,"y":230,"width":695,"height":11}},{"id":"2489d237-8685-48e9-b466-d016ecda65bf","block_type":"box","text":"date due, unless S&P believes that such payments will be made within five business days in the","page_number":191,"box":{"x":196,"y":245,"width":686,"height":11}},{"id":"2b1d82c9-7ce7-4b20-96ab-ff0e4dec8af2","block_type":"box","text":"absence of a stated grace period or within the earlier of the stated grace period or 30 calendar","page_number":191,"box":{"x":196,"y":260,"width":676,"height":11}},{"id":"b930898f-6b41-43a6-9b13-ca3b0e56fbe7","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":191,"box":{"x":196,"y":275,"width":708,"height":11}},{"id":"b42b47f3-0614-4458-860c-82d62eb6a062","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":191,"box":{"x":196,"y":290,"width":694,"height":12}},{"id":"a2d09089-efad-4c51-bca0-587be73111d7","block_type":"box","text":"provisions. A rating on an obligation is lowered to ‘D’ if it is subject to a distressed debt","page_number":191,"box":{"x":197,"y":305,"width":626,"height":12}},{"id":"542140e5-ca5e-4a34-9e1d-36b2d26b2d47","block_type":"box","text":"restructuring.","page_number":191,"box":{"x":197,"y":321,"width":92,"height":11}},{"id":"34aca8c4-f30d-4ec8-a28b-c5ee4ff0e3d6","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":191,"box":{"x":103,"y":341,"width":756,"height":11}},{"id":"d16f9553-6406-4f9f-a57f-3aa375b030a0","block_type":"box","text":"standing within the rating categories.","page_number":191,"box":{"x":69,"y":356,"width":262,"height":11}},{"id":"b8dc954f-f093-464a-9c50-6ebf5f55ecef","block_type":"box","text":"Short-Term Issue Credit Ratings","page_number":191,"box":{"x":68,"y":386,"width":233,"height":11}},{"id":"832a9add-6e46-49e3-8780-8b4d4b0f2880","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":191,"box":{"x":68,"y":414,"width":833,"height":11}},{"id":"dd20ab60-671f-4490-9ad4-8a547d8df733","block_type":"box","text":"meet its financial commitments on the obligation is strong. Within this category, cer tain obligations","page_number":191,"box":{"x":197,"y":429,"width":707,"height":11}},{"id":"bf2f35a6-3e7a-499f-b4cc-cd8fd5b3f57d","block_type":"box","text":"are designated with a plus sign (+). This indicates that the obligor’s capacity to meet its financial","page_number":191,"box":{"x":196,"y":444,"width":691,"height":11}},{"id":"fb9a1575-bb30-4e10-bac5-d8dd641e0bc3","block_type":"box","text":"commitments on these obligations is extremely strong.","page_number":191,"box":{"x":196,"y":459,"width":390,"height":11}},{"id":"982d5065-0f98-4cab-8680-862fbfd49833","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":191,"box":{"x":68,"y":479,"width":837,"height":12}},{"id":"0c2f8b6b-0683-44af-a3b5-af576b0ddca5","block_type":"box","text":"in circumstances and economic conditions than obligations in higher rating categories. However,","page_number":191,"box":{"x":197,"y":495,"width":684,"height":11}},{"id":"7d79a216-b90d-456c-ad65-240c964f4ea6","block_type":"box","text":"the obligor’s capacity to meet its financial commitments on the obligation is satisfactory.","page_number":191,"box":{"x":195,"y":509,"width":634,"height":12}},{"id":"bcfc95ab-0d75-454b-bf8a-6ec2ad8e01b5","block_type":"box","text":"A-3 A shor t-term obligation rated ‘A-3’ exhibits adequate protection parameters. However, adverse","page_number":191,"box":{"x":68,"y":530,"width":798,"height":11}},{"id":"e9bf1475-6a09-48b6-9806-e31fae2de5b7","block_type":"box","text":"economic conditions or changing circumstances are more likely to weaken an obligor’s capacity to","page_number":191,"box":{"x":196,"y":545,"width":699,"height":11}},{"id":"659ab524-bd25-4091-bbf9-a659b2882db1","block_type":"box","text":"meet its financial commitments on the obligation.","page_number":191,"box":{"x":197,"y":560,"width":351,"height":11}},{"id":"3d1a8b88-32e3-46cf-829b-2de5213944d7","block_type":"box","text":"B A shor t-term obligation rated ‘B’ is regarded as vulnerable and has significant speculative","page_number":191,"box":{"x":70,"y":580,"width":765,"height":11}},{"id":"99a2c282-c379-43e7-9f1d-09a96099ca0e","block_type":"box","text":"characteristics. The obligor currently has the capacity to meet its financial commitments; however,","page_number":191,"box":{"x":196,"y":595,"width":700,"height":11}},{"id":"929ec70b-9154-494f-819c-d18d311060d9","block_type":"box","text":"it faces major ongoing uncer tainties that could lead to the obligor’s inadequate capacity to meet its","page_number":191,"box":{"x":197,"y":610,"width":708,"height":12}},{"id":"468f76b6-ac52-4b72-a130-c47246f98f0c","block_type":"box","text":"financial commitments.","page_number":191,"box":{"x":196,"y":625,"width":165,"height":9}},{"id":"6286c8d9-b414-451e-8e7c-c9a1aeaebad1","block_type":"box","text":"C A shor t-term obligation rated ‘C’ is currently vulnerable to nonpayment and is dependent upon","page_number":191,"box":{"x":69,"y":646,"width":796,"height":11}},{"id":"41a97f4e-d3fe-4392-9f8e-7fd0aa8f8d29","block_type":"box","text":"favorable business, financial, and economic conditions for the obligor to meet its financial","page_number":191,"box":{"x":196,"y":661,"width":641,"height":11}},{"id":"cbb31529-b6e7-41ce-811a-ff39e34151a9","block_type":"box","text":"commitments on the obligation.","page_number":191,"box":{"x":196,"y":676,"width":224,"height":11}},{"id":"10f5d9a0-a5ee-411f-96ba-a1f182912914","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":191,"box":{"x":70,"y":696,"width":808,"height":11}},{"id":"eb373adb-b0a1-4f98-8807-0d4c5cd6ef91","block_type":"box","text":"capital instruments, the ‘D’ rating category is used when payments on an obligation are not made","page_number":191,"box":{"x":196,"y":711,"width":698,"height":11}},{"id":"346aa6d0-2712-4225-b20a-5ee8369cbe6e","block_type":"box","text":"on the date due, unless S&P believes that such payments will be made within any stated grace","page_number":191,"box":{"x":196,"y":726,"width":678,"height":12}},{"id":"ae1e3cfa-b224-45ed-86cf-fa1b744644e8","block_type":"box","text":"period. However, any stated grace period longer than five business days will be treated as five","page_number":191,"box":{"x":197,"y":741,"width":669,"height":12}},{"id":"c073a6cd-bb57-447c-b483-7a15050fc1ab","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":191,"box":{"x":196,"y":756,"width":707,"height":12}},{"id":"22b1142b-7fed-4137-88e5-47e238aaabc5","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":191,"box":{"x":196,"y":772,"width":669,"height":11}},{"id":"40d2b4d5-cf1e-4a54-aaaf-06bf13dc64ab","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":191,"box":{"x":196,"y":787,"width":700,"height":11}},{"id":"8252903a-ca10-4a7b-9882-4afff296ac5c","block_type":"box","text":"debt restructuring.","page_number":191,"box":{"x":196,"y":802,"width":130,"height":11}},{"id":"f16c0aab-1aac-43e8-946f-4e6fe73a3c89","block_type":"box","text":"Description of S&P’s Municipal Short-Term Note Ratings","page_number":191,"box":{"x":69,"y":830,"width":411,"height":11}},{"id":"08a58b4a-26c4-43c9-9c81-6d3265ced186","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":191,"box":{"x":101,"y":852,"width":772,"height":11}},{"id":"5911b3b2-6d8f-4288-9e02-5b0e20b51ebc","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":191,"box":{"x":69,"y":868,"width":823,"height":11}},{"id":"4d08407f-8b63-4e39-849c-97639f829bb2","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":191,"box":{"x":69,"y":882,"width":832,"height":12}},{"id":"961fb84d-be24-42c1-bd6e-639fe74eb166","block_type":"box","text":"assign, S&P’s analysis will review the following considerations:","page_number":191,"box":{"x":69,"y":898,"width":447,"height":11}},{"id":"0c76347e-ae3c-4677-b85f-f5d1d2f99b61","block_type":"box","text":"A-5","page_number":191,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"ba1527d0-6d9e-439b-bb5d-df83cb1f7564","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":191,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ee645323-0472-495b-afe3-29f70bdd00a3","block_type":"box","text":"•","page_number":192,"box":{"x":69,"y":48,"width":6,"height":4}},{"id":"9b0ae8b2-f4a6-45ac-8475-7de4a96bdbfa","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":192,"box":{"x":101,"y":45,"width":796,"height":11}},{"id":"2b92a663-2d29-40f6-be10-840b29500f82","block_type":"box","text":"as a note; and","page_number":192,"box":{"x":102,"y":60,"width":101,"height":10}},{"id":"2e316964-6f23-47cf-a0bf-50479bbd4acf","block_type":"box","text":"•","page_number":192,"box":{"x":69,"y":83,"width":6,"height":4}},{"id":"19ab3437-fa19-4800-abd9-db33f402e936","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":192,"box":{"x":102,"y":80,"width":794,"height":11}},{"id":"9058083b-e8aa-48bd-93aa-411ac8460b3c","block_type":"box","text":"treated as a note.","page_number":192,"box":{"x":101,"y":95,"width":127,"height":9}},{"id":"8e09ae50-699a-46ed-83c7-af8b7a48a086","block_type":"box","text":"S&P’s municipal shor t-term note rating symbols are as follows:","page_number":192,"box":{"x":102,"y":118,"width":448,"height":11}},{"id":"c275a0ed-9838-46c2-89f0-54624f395e62","block_type":"box","text":"SP-1 Strong capacity to pay principal and interest. An issue determined to possess a very strong","page_number":192,"box":{"x":69,"y":146,"width":779,"height":11}},{"id":"d7a54e01-725c-44d8-9bc3-72dc429eb4ef","block_type":"box","text":"capacity to pay debt service is given a plus (+) designation.","page_number":192,"box":{"x":196,"y":161,"width":422,"height":11}},{"id":"6d1b1a44-2beb-49ec-9134-82c1239e4ef9","block_type":"box","text":"SP-2 Satisfactory capacity to pay principal and interest, with some vulnerability to adverse financial and","page_number":192,"box":{"x":69,"y":181,"width":825,"height":11}},{"id":"11e1a641-1a35-4ed7-972e-f76dedf64f44","block_type":"box","text":"economic changes over the term of the notes.","page_number":192,"box":{"x":196,"y":196,"width":327,"height":11}},{"id":"264d175b-feb0-4822-9b3e-5ab52d69d6c2","block_type":"box","text":"SP-3 Speculative capacity to pay principal and interest.","page_number":192,"box":{"x":69,"y":216,"width":479,"height":11}},{"id":"a70c8f2f-a226-4ebb-a1f7-453cd0951960","block_type":"box","text":"D ‘D’ is assigned upon failure to pay the note when due, completion of a distressed debt","page_number":192,"box":{"x":70,"y":236,"width":745,"height":11}},{"id":"488caa47-5178-48f9-9e96-2caf1d74e9f4","block_type":"box","text":"restructuring, or the filing of a bankruptcy petition or the taking of similar action and where default","page_number":192,"box":{"x":197,"y":251,"width":699,"height":12}},{"id":"f95395b6-9b82-444f-96da-8c417665f9e4","block_type":"box","text":"on an obligation is a vir tual cer tainty, for example due to automatic stay provisions.","page_number":192,"box":{"x":196,"y":266,"width":594,"height":12}},{"id":"cecb2ec4-0fc4-4843-b5bb-e8a08fc84df9","block_type":"box","text":"Description of Fitch Ratings’ (“Fitch”) Credit Ratings Scales","page_number":192,"box":{"x":69,"y":294,"width":442,"height":11}},{"id":"a3cf616b-2d59-4dd2-a886-4a642eb9fa91","block_type":"box","text":"Fitch publishes credit ratings that are forward-looking opinions on the relative ability of an entity or obligation to","page_number":192,"box":{"x":102,"y":317,"width":793,"height":11}},{"id":"66d2a652-b5e7-4f4b-bb0d-3deee517de7b","block_type":"box","text":"meet financial commitments. Issuer default ratings (IDRs) are assigned to corporations, sovereign entities, financial","page_number":192,"box":{"x":69,"y":332,"width":826,"height":11}},{"id":"a2bbb697-0c51-405d-8758-07bf98358e9e","block_type":"box","text":"institutions such as banks, leasing companies and insurers, and public finance entities (local and regional","page_number":192,"box":{"x":70,"y":347,"width":756,"height":11}},{"id":"04ec8868-377b-463b-b205-29ede24143db","block_type":"box","text":"governments). Issue level ratings are also assigned, often include an expectation of recovery and may be notched","page_number":192,"box":{"x":68,"y":362,"width":813,"height":11}},{"id":"820fccd4-184f-4022-bed6-ec29a3092330","block_type":"box","text":"above or below the issuer level rating. Issue ratings are assigned to secured and unsecured debt securities, loans,","page_number":192,"box":{"x":69,"y":377,"width":819,"height":12}},{"id":"39f1bb79-a055-4aaf-a538-7632f8a5474b","block_type":"box","text":"preferred stock and other instruments, Structured finance ratings are issue ratings to securities backed by","page_number":192,"box":{"x":70,"y":392,"width":760,"height":12}},{"id":"7fb9c37d-d9a2-44ab-aede-4fcf25809956","block_type":"box","text":"receivables or other financial assets that consider the obligations’ relative vulnerability to default.","page_number":192,"box":{"x":69,"y":407,"width":694,"height":12}},{"id":"81df1645-e7fb-45db-a026-efbd03e6b6f1","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":192,"box":{"x":102,"y":430,"width":747,"height":11}},{"id":"c2fc99e2-6ed0-4145-a97a-034b4331ed05","block_type":"box","text":"commitments, such as interest, preferred dividends, repayment of principal, insurance claims or counterpar ty","page_number":192,"box":{"x":69,"y":445,"width":782,"height":11}},{"id":"17344dbd-1e7f-4f50-8c3a-d0de78609a7d","block_type":"box","text":"obligations. Credit ratings relating to securities and obligations of an issuer can include a recovery expectation.","page_number":192,"box":{"x":69,"y":460,"width":793,"height":12}},{"id":"8050e368-21ab-4935-a57c-16258f3b472d","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":192,"box":{"x":69,"y":475,"width":761,"height":12}},{"id":"68c22c38-6a6c-4d5a-b39b-dc36bdf6ab0e","block_type":"box","text":"accordance with the terms on which they invested. The agency’s credit ratings cover the global spectrum of","page_number":192,"box":{"x":69,"y":491,"width":766,"height":11}},{"id":"f920d504-1835-4923-b53d-4fa5b4ab9b76","block_type":"box","text":"corporate, sovereign financial, bank, insurance, and public finance entities (including supranational and sub-national","page_number":192,"box":{"x":69,"y":506,"width":827,"height":11}},{"id":"786c5fc5-03c9-4abf-8613-12bab537022d","block_type":"box","text":"entities) and the securities or other obligations they issue, as well as structured finance securities backed by","page_number":192,"box":{"x":69,"y":521,"width":779,"height":11}},{"id":"9a4b3408-54fd-414a-82bb-20317d78a379","block_type":"box","text":"receivables or other financial assets.","page_number":192,"box":{"x":69,"y":536,"width":262,"height":9}},{"id":"6d1c6631-9f33-4b5a-a8d9-e1f6bd53f036","block_type":"box","text":"The terms “investment grade” and “speculative grade” have established themselves over time as shor thand to","page_number":192,"box":{"x":101,"y":559,"width":794,"height":11}},{"id":"701d86fd-2281-4aa4-8932-4f3b9f2215c1","block_type":"box","text":"describe the categories ‘AAA’ to ‘BBB’ (investment grade) and ‘BB’ to ‘D’ (speculative grade). The terms investment","page_number":192,"box":{"x":69,"y":574,"width":826,"height":11}},{"id":"25fd2ddf-be64-4b9d-81ff-28d503ea2085","block_type":"box","text":"grade and speculative grade are market conventions and do not imply any recommendation or endorsement of a","page_number":192,"box":{"x":68,"y":589,"width":800,"height":11}},{"id":"b7915c01-dbfc-447b-a71e-a3fed9df8ca9","block_type":"box","text":"specific security for investment purposes. Investment grade categories indicate relatively low to moderate credit risk,","page_number":192,"box":{"x":69,"y":604,"width":832,"height":11}},{"id":"25013651-4c76-478f-9668-a569acae1aa9","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":192,"box":{"x":68,"y":619,"width":793,"height":11}},{"id":"fd3b339a-2c4a-425c-847f-6203a7f36165","block_type":"box","text":"occurred.","page_number":192,"box":{"x":69,"y":634,"width":65,"height":9}},{"id":"b32a51d5-25a7-452e-b699-628bd38521db","block_type":"box","text":"Fitch may also include issues relating to a rated issuer that are not and have not been rated on its web page.","page_number":192,"box":{"x":102,"y":657,"width":779,"height":11}},{"id":"3b76dfdd-4e83-4257-bb33-22283ac124ba","block_type":"box","text":"Such issues are also denoted as ‘NR’.","page_number":192,"box":{"x":69,"y":672,"width":274,"height":9}},{"id":"5e28a835-c0fd-43c5-916c-bd60b9a3aa2b","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":192,"box":{"x":102,"y":695,"width":797,"height":11}},{"id":"c3ed3574-334e-4d59-94fb-57befb09b5e2","block_type":"box","text":"not predictive of a specific frequency of default or loss.","page_number":192,"box":{"x":69,"y":710,"width":391,"height":11}},{"id":"5536aeb9-794c-4f6e-a75e-c67d7f308fe2","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":192,"box":{"x":102,"y":733,"width":798,"height":11}},{"id":"200b0204-4d9d-4f4c-9158-e709dafaf476","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":192,"box":{"x":68,"y":748,"width":780,"height":11}},{"id":"9cd9727f-0693-44d1-85da-60851eb907bb","block_type":"box","text":"considerations. However, in terms of payment obligation on the rated liability, market risk may be considered to the","page_number":192,"box":{"x":69,"y":763,"width":821,"height":11}},{"id":"8be7d450-666b-4552-aa5c-eff382f2b924","block_type":"box","text":"extent that it influences the ability of an issuer to pay upon a commitment.","page_number":192,"box":{"x":69,"y":778,"width":531,"height":11}},{"id":"2e3925cf-c027-4397-99f3-916ae82c8dd7","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":192,"box":{"x":102,"y":801,"width":801,"height":11}},{"id":"e82becd8-46b0-41ff-a542-9ed806a24ce9","block_type":"box","text":"the obligation to pay upon a commitment (for example, in the case of index-linked bonds).","page_number":192,"box":{"x":68,"y":816,"width":639,"height":11}},{"id":"ac096e40-bdbc-49b5-8509-400e83911751","block_type":"box","text":"In the default components of ratings assigned to individual obligations or instruments, the agency typically rates","page_number":192,"box":{"x":102,"y":838,"width":799,"height":12}},{"id":"9ff30824-bc39-4069-82fa-7b25682aea0f","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":192,"box":{"x":68,"y":853,"width":794,"height":12}},{"id":"8e6048fd-f68b-44e0-a4d7-5990db53a166","block_type":"box","text":"limited cases, Fitch may include additional considerations (","page_number":192,"box":{"x":70,"y":869,"width":420,"height":11}},{"id":"401f652c-bbb6-44e1-bde2-64dc7e5b3c53","block_type":"box","text":"i.e.","page_number":192,"box":{"x":492,"y":869,"width":20,"height":9}},{"id":"5a613a6c-1b68-4aa9-b167-0edf2af3e0b1","block_type":"box","text":"rate to a higher or lower standard than that implied in","page_number":192,"box":{"x":519,"y":869,"width":380,"height":11}},{"id":"0e0815dd-56da-4aea-9001-74ab1d86340f","block_type":"box","text":"the obligation’s documentation).","page_number":192,"box":{"x":68,"y":884,"width":230,"height":11}},{"id":"e68199a1-4412-4e64-9336-0e80d3d84bff","block_type":"box","text":"A-6","page_number":192,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"6df45f18-8c1f-46c2-8931-ff8de68adaa3","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":192,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ff1b9385-4ff1-403c-b79b-0ffcc0600289","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":193,"box":{"x":101,"y":45,"width":779,"height":11}},{"id":"4e02fa1e-772c-44a7-b8a4-abc51f558bee","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":193,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"5d16f52b-30a6-4b92-9ebf-1c810d88cdbe","block_type":"box","text":"agents in the form of a rating letter.","page_number":193,"box":{"x":69,"y":75,"width":253,"height":11}},{"id":"01ad0864-b552-4c4c-93d1-15aa2b082b04","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":193,"box":{"x":101,"y":98,"width":797,"height":11}},{"id":"bd706035-6448-4c29-9f7b-ce3995409fdd","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":193,"box":{"x":69,"y":113,"width":806,"height":11}},{"id":"5b39b1a8-13d2-4c6d-b8ac-69ab7bea6846","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":193,"box":{"x":69,"y":128,"width":796,"height":11}},{"id":"e3812891-baea-42fe-a621-dfe7bf0e1673","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":193,"box":{"x":69,"y":143,"width":811,"height":11}},{"id":"40113a54-b9ed-4db9-b88f-b9d39b664254","block_type":"box","text":"case letter symbol combined with either an ‘*’ (","page_number":193,"box":{"x":69,"y":158,"width":340,"height":11}},{"id":"e92c0451-fe87-4deb-a3ab-8ec7410e1f33","block_type":"box","text":"e.g.","page_number":193,"box":{"x":410,"y":160,"width":25,"height":9}},{"id":"b07b52e8-43f5-4fb7-a77d-f5c41dab4fd5","block_type":"box","text":"‘bbb+*’) or (cat) suffix to denote the opinion status. Credit","page_number":193,"box":{"x":443,"y":158,"width":418,"height":11}},{"id":"44ff64fd-3411-4293-81d2-4023eb2f4475","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":193,"box":{"x":69,"y":173,"width":780,"height":11}},{"id":"77d0cde4-8d89-4aea-9cb6-80da27e8cd24","block_type":"box","text":"sufficiently available. Rating assessment services are a notch-specific view using the primary rating scale of how an","page_number":193,"box":{"x":69,"y":188,"width":827,"height":12}},{"id":"565b2592-68a3-40a6-b740-20164447f5ac","block_type":"box","text":"existing or potential rating may be changed by a given set of hypothetical circumstances. While credit opinions and","page_number":193,"box":{"x":69,"y":203,"width":816,"height":12}},{"id":"877e2093-ff45-4e0d-82e6-648f9d782049","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":193,"box":{"x":69,"y":219,"width":808,"height":11}},{"id":"849c3b80-2d92-47b4-af8d-aca58c0d3743","block_type":"box","text":"assigned, which can signify the trajectory of the credit profile.","page_number":193,"box":{"x":69,"y":234,"width":437,"height":11}},{"id":"bb9ddf71-555c-4005-bea0-1dc541f2bca2","block_type":"box","text":"Description of Fitch’s Long-Term Corporate Finance Obligations Rating Scales","page_number":193,"box":{"x":69,"y":264,"width":567,"height":11}},{"id":"6fe68f72-26cb-40e6-842e-1e5b1651e22a","block_type":"box","text":"Ratings of individual securities or financial obligations of a corporate issuer address relative vulnerability to","page_number":193,"box":{"x":102,"y":286,"width":763,"height":12}},{"id":"90635a46-63c8-4a15-a427-7f83be222765","block_type":"box","text":"default on an ordinal scale. In addition, for financial obligations in corporate finance, a measure of recovery given","page_number":193,"box":{"x":69,"y":302,"width":807,"height":11}},{"id":"d3355994-66f3-40ca-a38a-6005f3fbf064","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":193,"box":{"x":69,"y":317,"width":840,"height":11}},{"id":"8bfe4f14-e99f-45ad-abfc-59c457d42e30","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":193,"box":{"x":70,"y":332,"width":833,"height":11}},{"id":"086f6a45-7ccf-46a4-a349-0adf498e4575","block_type":"box","text":"On the contrary, Ratings of debtor-in-possession (“DIP”) obligations incorporate the expectation of full repayment.","page_number":193,"box":{"x":69,"y":347,"width":807,"height":11}},{"id":"8fa4c7b9-ebe7-47f2-bae3-a83133725717","block_type":"box","text":"The relationship between the issuer scale and obligation scale assumes a generic historical average recovery.","page_number":193,"box":{"x":101,"y":370,"width":784,"height":11}},{"id":"d5a9e7ce-c61f-4e9e-9c53-84897f9b0c7a","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":193,"box":{"x":70,"y":385,"width":787,"height":11}},{"id":"8d0fe539-bf65-4ca2-9ef7-3742614c040a","block_type":"box","text":"default rating (“IDR”), based on their relative ranking, relative vulnerability to default or based on explicit Recovery","page_number":193,"box":{"x":69,"y":400,"width":813,"height":11}},{"id":"733e16a8-6ee7-40d9-8ba4-da7f6a2ecf10","block_type":"box","text":"Ratings.","page_number":193,"box":{"x":70,"y":415,"width":55,"height":11}},{"id":"2166d5b2-19bc-44ff-921f-42673450c05e","block_type":"box","text":"As a result, individual obligations of entities, such as corporations, are assigned ratings higher, lower, or the","page_number":193,"box":{"x":101,"y":438,"width":772,"height":11}},{"id":"33b6cc4c-1a43-49d3-8949-97fec593cfff","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":193,"box":{"x":69,"y":453,"width":815,"height":11}},{"id":"e4ab9a7d-ece8-4383-b8f8-5de6aa36a171","block_type":"box","text":"end of the ratings scale, Fitch publishes explicit Recovery Ratings in many cases to complement issuer and","page_number":193,"box":{"x":69,"y":468,"width":766,"height":11}},{"id":"cce1a39b-cbc2-4eb6-80b9-53e22defb77d","block_type":"box","text":"obligation ratings.","page_number":193,"box":{"x":69,"y":483,"width":125,"height":11}},{"id":"37e470b8-d8c7-4018-8d02-7707ec067f9d","block_type":"box","text":"Fitch long-term obligations rating scales are as follows:","page_number":193,"box":{"x":102,"y":506,"width":390,"height":11}},{"id":"ccc7ec6e-343a-4312-b035-e64166e24950","block_type":"box","text":"AAA Highest Credit Quality. ‘AAA’ ratings denote the lowest expectation of default risk. They are","page_number":193,"box":{"x":68,"y":533,"width":774,"height":12}},{"id":"606bf0da-b0bd-4227-ac91-26066180e6d6","block_type":"box","text":"assigned only in cases of exceptionally strong capacity for payment of financial commitments. This","page_number":193,"box":{"x":196,"y":549,"width":703,"height":11}},{"id":"e5529985-058b-4b62-a086-9122c2d5f001","block_type":"box","text":"capacity is highly unlikely to be adversely affected by foreseeable events.","page_number":193,"box":{"x":196,"y":564,"width":521,"height":11}},{"id":"cb02082a-71ed-4c57-b416-82a22fa68ae2","block_type":"box","text":"AA Very High Credit Quality. ‘AA’ ratings denote expectations of very low default risk. They indicate very","page_number":193,"box":{"x":68,"y":584,"width":838,"height":11}},{"id":"32ebd521-ee52-4055-b8ca-719a24478ed4","block_type":"box","text":"strong capacity for payment of financial commitments. This capacity is not significantly vulnerable","page_number":193,"box":{"x":196,"y":599,"width":694,"height":11}},{"id":"c543cf9c-5902-4981-ac3c-69fecc626815","block_type":"box","text":"to foreseeable events.","page_number":193,"box":{"x":195,"y":614,"width":159,"height":9}},{"id":"61e94596-a4be-401b-afac-2b53c4abfcdf","block_type":"box","text":"A High Credit Quality. ‘A’ ratings denote expectations of low default risk. The capacity for payment of","page_number":193,"box":{"x":68,"y":634,"width":828,"height":12}},{"id":"4fd651da-95e2-4960-ba8c-8847a702807f","block_type":"box","text":"financial commitments is considered strong. This capacity may, never theless, be more vulnerable","page_number":193,"box":{"x":196,"y":649,"width":695,"height":12}},{"id":"3bbf52d1-ab06-414c-bae6-642952547cbc","block_type":"box","text":"to adverse business or economic conditions than is the case for higher ratings.","page_number":193,"box":{"x":195,"y":664,"width":565,"height":12}},{"id":"eac5a93e-4f5d-4598-b6f0-36affb61e63b","block_type":"box","text":"BBB Good Credit Quality. ‘BBB’ ratings indicate that expectations of default risk are currently low. The","page_number":193,"box":{"x":70,"y":685,"width":814,"height":11}},{"id":"135edfb8-340a-46c2-b71d-e505654c199c","block_type":"box","text":"capacity for payment of financial commitments is considered adequate, but adverse business or","page_number":193,"box":{"x":196,"y":700,"width":686,"height":11}},{"id":"60d8ff87-eb1e-4122-ba24-0913ccd6438f","block_type":"box","text":"economic conditions are more likely to impair this capacity.","page_number":193,"box":{"x":196,"y":715,"width":420,"height":11}},{"id":"b7f4a480-e46e-49a9-b527-47d62ea1e41b","block_type":"box","text":"BB Speculative. ‘BB’ ratings indicate an elevated vulnerability to default risk, par ticularly in the event of","page_number":193,"box":{"x":70,"y":735,"width":839,"height":11}},{"id":"e9c9802a-597a-4640-add6-c1a55971d0d6","block_type":"box","text":"adverse changes in business or economic conditions over time; however, business or financial","page_number":193,"box":{"x":196,"y":750,"width":672,"height":11}},{"id":"37af6b3c-79ab-4eb7-a02a-54ec25a7cc6f","block_type":"box","text":"flexibility exists that suppor ts the servicing of financial commitments.","page_number":193,"box":{"x":196,"y":765,"width":495,"height":12}},{"id":"83657d68-64aa-4d3f-9ccb-6d84fcb71740","block_type":"box","text":"B Highly Speculative. ‘B’ ratings indicate that material default risk is present, but a limited margin of","page_number":193,"box":{"x":70,"y":785,"width":828,"height":12}},{"id":"69bdbcf3-aa11-49d0-ade7-00cc078109a1","block_type":"box","text":"safety remains. 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The modifiers “+” or “-” may be appended to a rating to denote","page_number":194,"box":{"x":101,"y":164,"width":808,"height":12}},{"id":"390f942c-f941-4c06-a2c1-d148821eae74","block_type":"box","text":"relative status within major rating categories.","page_number":194,"box":{"x":69,"y":180,"width":320,"height":11}},{"id":"6f26a8e9-2aae-4b6c-93b4-e9a51a19ebbd","block_type":"box","text":"For example, the rating category ‘AA’ has three notch-specific rating levels (‘AA+’; ‘AA’; ‘AA–’; each a rating","page_number":194,"box":{"x":102,"y":202,"width":761,"height":11}},{"id":"f8e8cf9d-f71d-4a5e-b1b2-147b7f19eeb1","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":194,"box":{"x":70,"y":217,"width":813,"height":12}},{"id":"3f23ea2e-0d9c-44cd-a1a9-2ed9e1308167","block_type":"box","text":"category of ‘F1’, a ‘+’ may be appended.","page_number":194,"box":{"x":69,"y":232,"width":289,"height":12}},{"id":"ce9a6ea5-ed67-4db3-93e8-138d4bae63dd","block_type":"box","text":"Description of Fitch’s Short-Term Ratings Assigned to Issuers and Obligations","page_number":194,"box":{"x":69,"y":263,"width":568,"height":11}},{"id":"c97ea370-7d23-461a-9a83-8e69fcb02a9a","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":194,"box":{"x":101,"y":285,"width":806,"height":12}},{"id":"b160e666-f610-48e5-9ba8-57c50906cf86","block_type":"box","text":"entity and relates to the capacity to meet financial obligations in accordance with the documentation governing the","page_number":194,"box":{"x":69,"y":300,"width":817,"height":12}},{"id":"0fdbe55a-3f62-440c-a19c-c3b9794bcf7a","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":194,"box":{"x":69,"y":315,"width":822,"height":12}},{"id":"ec0f3c7a-10ad-4823-a07b-9b6a7f04f6e6","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":194,"box":{"x":69,"y":331,"width":827,"height":11}},{"id":"4b563032-41e0-4d4a-95f4-1baa4bb46a0b","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":194,"box":{"x":70,"y":346,"width":808,"height":11}},{"id":"f6213646-8b4b-4f74-afd7-e524df2b92c8","block_type":"box","text":"finance markets.","page_number":194,"box":{"x":68,"y":361,"width":118,"height":9}},{"id":"ba01a7f5-8812-4f8d-85f1-94601adaade7","block_type":"box","text":"Fitch shor t-term ratings are as follows:","page_number":194,"box":{"x":102,"y":383,"width":273,"height":12}},{"id":"b44096db-8701-48fd-8e93-4b51f691d414","block_type":"box","text":"F1 Highest Shor t-Term Credit Quality. Indicates the strongest intrinsic capacity for timely payment of","page_number":194,"box":{"x":70,"y":411,"width":816,"height":12}},{"id":"9f0deb6a-a308-4c1d-a7db-7d7ea5aa48c3","block_type":"box","text":"financial commitments; may have an added “+” to denote any exceptionally strong credit feature.","page_number":194,"box":{"x":196,"y":426,"width":692,"height":12}},{"id":"f195329d-2b22-4009-afd2-72855aa42c2a","block_type":"box","text":"F2 Good Shor t-Term Credit Quality. Good intrinsic capacity for timely payment of financial","page_number":194,"box":{"x":70,"y":446,"width":734,"height":12}},{"id":"a66f96f7-1eec-4ffa-91dc-933f07ca7bd4","block_type":"box","text":"commitments.","page_number":194,"box":{"x":196,"y":462,"width":100,"height":9}},{"id":"3ebe6d18-3116-41c0-8261-30726766b7b3","block_type":"box","text":"F3 Fair Shor t-Term Credit Quality. The intrinsic capacity for timely payment of financial commitments is","page_number":194,"box":{"x":70,"y":482,"width":831,"height":11}},{"id":"8cfce346-75b8-4e26-9524-10d50f8f3895","block_type":"box","text":"adequate.","page_number":194,"box":{"x":196,"y":497,"width":70,"height":11}},{"id":"9033d66f-f8cd-4948-a214-41bf9557e940","block_type":"box","text":"B Speculative Shor t-Term Credit Quality. Minimal capacity for timely payment of financial","page_number":194,"box":{"x":70,"y":517,"width":737,"height":11}},{"id":"f3268f17-dcab-4a9d-9160-065749432154","block_type":"box","text":"commitments, plus heightened vulnerability to near term adverse changes in financial and","page_number":194,"box":{"x":196,"y":532,"width":641,"height":11}},{"id":"c0830bc8-4fb7-4671-8bd7-c66717712c3e","block_type":"box","text":"economic conditions.","page_number":194,"box":{"x":196,"y":548,"width":149,"height":8}},{"id":"a327cc4a-020d-4e6b-a7a1-7704faf590a4","block_type":"box","text":"C High Shor t-Term Default Risk. Default is a real possibility.","page_number":194,"box":{"x":69,"y":567,"width":535,"height":12}},{"id":"aa7a2666-a713-45e9-9299-d0e06771dc41","block_type":"box","text":"RD Restricted Default. 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Indicates a broad-based default event for an entity, or the default of a shor t-term","page_number":194,"box":{"x":70,"y":638,"width":761,"height":11}},{"id":"f621c64c-e96e-4573-9ab2-12faa7570fa5","block_type":"box","text":"obligation.","page_number":194,"box":{"x":196,"y":653,"width":72,"height":11}},{"id":"a5c12c9f-8f26-47c9-b084-b8059f6f68ef","block_type":"box","text":"A-8","page_number":194,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"261418c5-6812-4701-b5a5-fad88796e29f","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":194,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7a5f157b-28ce-4016-962d-7967a3b60f72","block_type":"box","text":"APPENDIX B","page_number":195,"box":{"x":438,"y":76,"width":101,"height":9}},{"id":"35d1921f-83a8-4a04-b4e0-038238cba447","block_type":"box","text":"Open-End Active and Fixed Income Index Fund Proxy Voting Policy","page_number":195,"box":{"x":247,"y":106,"width":484,"height":11}},{"id":"0fd16818-4bce-4139-966e-9c2042766e6f","block_type":"box","text":"Procedures Governing Delegation of Proxy Voting to Fund Advisers","page_number":195,"box":{"x":247,"y":121,"width":486,"height":11}},{"id":"0e90ea85-8bdc-43fc-9e71-a0b7b46c4c3f","block_type":"box","text":"Effective Date: January 1, 2025","page_number":195,"box":{"x":376,"y":136,"width":227,"height":11}},{"id":"2ecf0b24-bd4c-4d87-862e-7c958f169a68","block_type":"box","text":"Applies to the following types of Funds registered under the 1940 Act:","page_number":195,"box":{"x":231,"y":159,"width":515,"height":11}},{"id":"a70cff04-83b7-4fd5-bd04-54218afa478d","block_type":"box","text":"□","page_number":195,"box":{"x":284,"y":181,"width":15,"height":12}},{"id":"95a8e700-4301-4b88-ad9f-03702001f806","block_type":"box","text":"Index Equity Mutual Funds and Exchange-Traded 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Funds","page_number":195,"box":{"x":437,"y":249,"width":125,"height":9}},{"id":"8846c81f-7014-44cc-9c2b-2b4db0419f9d","block_type":"box","text":"□","page_number":195,"box":{"x":460,"y":272,"width":14,"height":11}},{"id":"203d0e7b-0296-4baa-ad85-d4a1858673a4","block_type":"box","text":"Other","page_number":195,"box":{"x":481,"y":272,"width":38,"height":9}},{"id":"9839fdd5-c0e0-4b05-84a6-1f3f832cd9b8","block_type":"box","text":"Objective and Scope","page_number":195,"box":{"x":101,"y":295,"width":149,"height":11}},{"id":"518e0b1e-7d3a-4dc1-92e2-06a064484213","block_type":"box","text":"Set for th below is the Open-End Active and Fixed Income Index Fund Proxy Voting Policy.","page_number":195,"box":{"x":134,"y":317,"width":622,"height":12}},{"id":"75aa8ae7-f57c-4b4f-b0ca-b7a94fa3a959","block_type":"box","text":"Policy/Document Requirements and Statements","page_number":195,"box":{"x":102,"y":340,"width":354,"height":11}},{"id":"c5258c35-b17f-42e7-911f-eed7dd9e8ff7","block_type":"box","text":"The Boards of Trustees/Directors (“Directors”) of cer tain open-end funds (the “Funds”) advised by","page_number":195,"box":{"x":134,"y":363,"width":702,"height":11}},{"id":"da386350-d1af-4915-b033-8ce514ad5f73","block_type":"box","text":"BlackRock Fund Advisors or BlackRock Advisors, LLC (“BlackRock”), have the responsibility for the oversight of","page_number":195,"box":{"x":102,"y":378,"width":789,"height":11}},{"id":"a8d1186b-793f-41ff-8d89-08e1f9660729","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":195,"box":{"x":101,"y":393,"width":801,"height":11}},{"id":"fc35b9a9-738c-4d41-b67f-325de1327e95","block_type":"box","text":"the Funds and their shareholders to delegate the responsibility to vote proxies to BlackRock, subject to the","page_number":195,"box":{"x":101,"y":408,"width":763,"height":11}},{"id":"74bade26-963f-4cb8-b27b-c932abacf2e9","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":195,"box":{"x":102,"y":423,"width":775,"height":12}},{"id":"7215ce91-0d9c-46f7-8674-4481f3c739d8","block_type":"box","text":"assets, all as contemplated by the Funds’ respective investment management agreements.","page_number":195,"box":{"x":102,"y":439,"width":651,"height":11}},{"id":"270b5bfa-f71b-4bd0-86cc-f53524e11d3d","block_type":"box","text":"BlackRock has adopted the BlackRock Active Investment Stewardship Global Engagement and Voting","page_number":195,"box":{"x":135,"y":461,"width":718,"height":11}},{"id":"0cd801ca-b6c9-4901-b2d0-6bc9a430569d","block_type":"box","text":"Guidelines (as from time to time amended, the “Guidelines”) governing proxy voting by active and fixed income","page_number":195,"box":{"x":102,"y":476,"width":788,"height":11}},{"id":"0967e533-fd3b-4f08-9b38-38fba250e26e","block_type":"box","text":"index Funds managed by BlackRock. The Guidelines include “climate and decarbonization” guidelines which","page_number":195,"box":{"x":102,"y":491,"width":766,"height":12}},{"id":"90806014-08f2-4e9b-8ef8-234af67b858c","block_type":"box","text":"apply to the Funds listed in Appendix A, if any.","page_number":195,"box":{"x":102,"y":506,"width":325,"height":12}},{"id":"4c835d57-9a49-4dff-93e8-10eb094f9f7a","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":195,"box":{"x":135,"y":529,"width":751,"height":11}},{"id":"b64763dc-3a32-47e9-8094-a5e00bed55b4","block_type":"box","text":"respect of securities held by each such Fund (or may refrain from voting) in accordance with the Guidelines.","page_number":195,"box":{"x":102,"y":544,"width":765,"height":11}},{"id":"b9b0a559-108b-45b2-af1e-f8d182741a07","block_type":"box","text":"Conflicts Management","page_number":195,"box":{"x":101,"y":567,"width":165,"height":11}},{"id":"cdd032b5-481a-4fe1-b948-1ebf8dac458c","block_type":"box","text":"BlackRock Active Investment Stewardship (“BAIS”) maintains policies and procedures that seek to prevent","page_number":195,"box":{"x":135,"y":590,"width":758,"height":11}},{"id":"1c084876-3aca-4c59-9a2c-8727d3ec3f0a","block_type":"box","text":"undue influence on BlackRock’s proxy voting activity and to mitigate material conflicts of interest in the exercise","page_number":195,"box":{"x":102,"y":605,"width":797,"height":11}},{"id":"d61e63d6-2266-47a0-9c2a-52c829aac6d1","block_type":"box","text":"of proxy voting responsibilities. Potential material conflicts, and the resultant potential for undue influence, might","page_number":195,"box":{"x":102,"y":620,"width":805,"height":11}},{"id":"3941220e-503d-4489-a56c-93751f9d4919","block_type":"box","text":"be due to a relationship between the investee company (or any shareholder proponent or dissident shareholder)","page_number":195,"box":{"x":102,"y":635,"width":797,"height":11}},{"id":"9ff22c63-1284-4e38-87d8-ccec0c74b0cb","block_type":"box","text":"and BlackRock, BlackRock’s affiliates or employees, or a Fund or a Fund’s affiliates. BlackRock has taken","page_number":195,"box":{"x":102,"y":650,"width":756,"height":11}},{"id":"a8870a47-80d4-4209-ab78-ab1cde795a02","block_type":"box","text":"cer tain steps to mitigate potential conflicts, which are outlined in detail in the Guidelines. 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The money BlackRock manages is not its own — it","page_number":200,"box":{"x":102,"y":64,"width":777,"height":11}},{"id":"a649e87d-e145-4971-8edb-e59f672e8471","block_type":"box","text":"belongs to BlackRock’s clients, many of whom make their own asset allocation and por tfolio construction decisions.","page_number":200,"box":{"x":69,"y":78,"width":828,"height":12}},{"id":"1f532558-2201-4b39-94ff-62c0fcf4ea9f","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":200,"box":{"x":68,"y":93,"width":835,"height":11}},{"id":"46f9cd38-ce71-4af9-99ed-57ccffdb0d6b","block_type":"box","text":"by understanding clients’ long-term investment objectives and offering choice on how and where they wish to invest","page_number":200,"box":{"x":69,"y":108,"width":823,"height":11}},{"id":"9a8965a3-3c0c-4210-89b6-780ca179f698","block_type":"box","text":"their money. BlackRock then helps clients seek the best risk-adjusted returns based on those choices, underpinning","page_number":200,"box":{"x":68,"y":123,"width":830,"height":11}},{"id":"c16cdbc5-a2bd-4673-8277-dbdc432872b5","block_type":"box","text":"this work with research, data and analytics.","page_number":200,"box":{"x":68,"y":138,"width":309,"height":11}},{"id":"2a7044c2-d271-4ddf-990f-8e99c780df3b","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":200,"box":{"x":101,"y":156,"width":796,"height":12}},{"id":"33314b32-6f29-4e7e-a9eb-95eee4ff143b","block_type":"box","text":"stewards of our clients’ assets, we engage with companies to discuss the corporate governance and business","page_number":200,"box":{"x":69,"y":171,"width":787,"height":12}},{"id":"9b33f76e-60f4-42ae-ab75-5c61ede4e8ef","block_type":"box","text":"practices that, in our experience, suppor t companies in delivering durable, risk-adjusted financial returns over time.","page_number":200,"box":{"x":70,"y":186,"width":820,"height":12}},{"id":"13f47afb-5d07-4fa4-a0d7-7b0946602aea","block_type":"box","text":"We are committed to building strong relationships through constructive, ongoing dialogue with the boards and","page_number":200,"box":{"x":68,"y":201,"width":782,"height":11}},{"id":"7b7e0a6a-8c06-4c98-9c08-320b75b72e2c","block_type":"box","text":"executive management of the companies in which our clients are invested.","page_number":200,"box":{"x":69,"y":216,"width":531,"height":11}},{"id":"ffbf1d0a-b3c6-4186-96b4-9e16f2745bc7","block_type":"box","text":"ABOUT BLACKROCK ACTIVE INVESTMENT STEWARDSHIP","page_number":200,"box":{"x":277,"y":246,"width":424,"height":9}},{"id":"94b850f9-f512-4cae-b668-0de0a4ebbd5f","block_type":"box","text":"BlackRock Active Investment Stewardship (BAIS) is a specialist team within the Por tfolio Management Group and","page_number":200,"box":{"x":102,"y":265,"width":804,"height":11}},{"id":"e65e475b-65e2-495e-88fb-bfbf0472812c","block_type":"box","text":"manages BlackRock’s stewardship engagement and voting on behalf of clients invested in active strategies globally.","page_number":200,"box":{"x":69,"y":280,"width":826,"height":11}},{"id":"25bf92d9-9692-428c-893f-8868c65f60b0","block_type":"box","text":"BAIS is also responsible for engagement with issuers in index fixed income strategies, where appropriate. Our","page_number":200,"box":{"x":70,"y":295,"width":783,"height":11}},{"id":"6a54043b-1488-4b7e-94f3-efe8e70b3ed3","block_type":"box","text":"activities are informed by these Global Engagement and Voting Guidelines (the “Guidelines”) and insights from active","page_number":200,"box":{"x":69,"y":309,"width":834,"height":12}},{"id":"81d5a0e5-eb54-4d90-9424-6a61237ad91b","block_type":"box","text":"investment analysts and por tfolio managers, with whom we work closely in engaging companies and voting at","page_number":200,"box":{"x":70,"y":324,"width":779,"height":12}},{"id":"dd84c157-8418-451e-85e5-dd5cdeda62ed","block_type":"box","text":"shareholder meetings.","page_number":200,"box":{"x":69,"y":339,"width":158,"height":11}},{"id":"bfe8651f-19a4-426d-a66a-02b807f5c4a7","block_type":"box","text":"Engagement with public companies is the foundation of our approach to stewardship within fundamental active","page_number":200,"box":{"x":102,"y":358,"width":789,"height":11}},{"id":"14f65ec2-a6d4-49d2-8ef3-129ea861bea6","block_type":"box","text":"investing.","page_number":200,"box":{"x":70,"y":373,"width":65,"height":11}},{"id":"7bf9fc9a-6f68-486b-b096-0140a218cc98","block_type":"box","text":"3","page_number":200,"box":{"x":137,"y":373,"width":4,"height":5}},{"id":"8e85e553-a48e-4d8d-9772-07a0d405bac7","block_type":"box","text":"Through direct dialogue with company leadership, we seek to understand their businesses and how they","page_number":200,"box":{"x":146,"y":373,"width":744,"height":11}},{"id":"e26876f7-5045-48a7-bf7e-c02151128be7","block_type":"box","text":"manage risks and oppor tunities to deliver durable, risk-adjusted financial returns. Por tfolio managers and","page_number":200,"box":{"x":69,"y":387,"width":751,"height":12}},{"id":"77562009-97f5-4520-b776-19ad5634db1c","block_type":"box","text":"stewardship specialists may engage jointly or independently on material corporate governance matters. Our","page_number":200,"box":{"x":69,"y":402,"width":765,"height":12}},{"id":"0e30917c-eaee-48ff-9f34-3bdd29f26a30","block_type":"box","text":"discussions focus on topics relevant to a company’s success over time, including governance and leadership,","page_number":200,"box":{"x":69,"y":417,"width":782,"height":12}},{"id":"f86ba00f-0ea9-4191-84cd-9f00eeaa4281","block_type":"box","text":"corporate strategy, capital structure and financial per formance, operations and material sustainability-related risks,","page_number":200,"box":{"x":69,"y":432,"width":820,"height":11}},{"id":"bc38ef39-7cf7-4677-b3dc-210794f0967b","block_type":"box","text":"as well as macro-economic, geopolitical and sector dynamics. We aim to be constructive investors and are generally","page_number":200,"box":{"x":69,"y":447,"width":828,"height":11}},{"id":"1f2aa156-5715-4653-a64d-665f934778e9","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":200,"box":{"x":69,"y":462,"width":821,"height":11}},{"id":"6ce9d2c6-c61d-4116-a14a-ba34b9822951","block_type":"box","text":"strong relationships with company leadership based on open dialogue and mutual respect.","page_number":200,"box":{"x":69,"y":477,"width":645,"height":11}},{"id":"7199576a-5e8a-4fbd-b5e4-085ee1539121","block_type":"box","text":"Different active equity strategies may implement these voting guidelines differently, as a result of the latitude","page_number":200,"box":{"x":102,"y":495,"width":780,"height":12}},{"id":"73741a1d-c0d3-400e-b17e-5205d9342cf1","block_type":"box","text":"each por tfolio manager has to make independent voting decisions on their holdings. For example, BAIS will generally","page_number":200,"box":{"x":69,"y":510,"width":831,"height":11}},{"id":"08ae860b-dd18-4cfc-9fef-94b1ef9d466b","block_type":"box","text":"vote the holdings in Systematic Active Equity por tfolios in accordance with these guidelines. We provide voting","page_number":200,"box":{"x":68,"y":525,"width":787,"height":11}},{"id":"6a0dc18a-0d2e-4f9f-a2b5-72ae4251e15d","block_type":"box","text":"recommendations to fundamental equity por tfolio managers, who may determine to vote differently based on each","page_number":200,"box":{"x":69,"y":540,"width":816,"height":11}},{"id":"1d6df86d-84f7-40ca-b901-1e6e3b1eac83","block_type":"box","text":"por tfolio’s investment objectives and strategy.","page_number":200,"box":{"x":70,"y":555,"width":327,"height":11}},{"id":"aeac2555-5185-43fe-815e-99aec6789d34","block_type":"box","text":"These guidelines discuss BAIS’ views on corporate governance topics on which we may engage with","page_number":200,"box":{"x":101,"y":574,"width":711,"height":11}},{"id":"3783d269-6898-4543-b384-46b1ec576121","block_type":"box","text":"management teams and board directors","page_number":200,"box":{"x":69,"y":589,"width":285,"height":11}},{"id":"9eedc053-7fe3-434d-a205-b9e35a49f068","block_type":"box","text":"4","page_number":200,"box":{"x":355,"y":589,"width":5,"height":4}},{"id":"5efac62a-718d-4d8e-9178-3f038b27312a","block_type":"box","text":"and on matters that routinely come to a shareholder vote. We recognize that","page_number":200,"box":{"x":366,"y":589,"width":544,"height":11}},{"id":"fb864265-809c-4f7e-bc2b-043b1c3ad34f","block_type":"box","text":"accepted corporate governance norms can differ across markets, and believe these guidelines represent globally","page_number":200,"box":{"x":69,"y":603,"width":807,"height":11}},{"id":"409fc68b-11aa-4db1-9179-e7b397415348","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":200,"box":{"x":69,"y":618,"width":827,"height":11}},{"id":"5981518f-c800-42db-82e3-8bdde6ce2b24","block_type":"box","text":"deliver financial returns to investors. Generally, we believe companies should observe accepted corporate governance","page_number":200,"box":{"x":69,"y":633,"width":840,"height":11}},{"id":"60558dc6-8a62-41b5-a3c1-b0b48cdc9d78","block_type":"box","text":"norms within their local markets or, par ticularly in markets without well-established norms, aspire to widely","page_number":200,"box":{"x":69,"y":648,"width":762,"height":11}},{"id":"2b937af7-186b-4326-8ddb-10b3b77b85a8","block_type":"box","text":"recognized international best practices. As one of many minority shareholders, BlackRock cannot – and does not try","page_number":200,"box":{"x":69,"y":663,"width":827,"height":11}},{"id":"8b570cd6-7efc-4dcf-a85a-14fcd99bc6a3","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":200,"box":{"x":68,"y":678,"width":837,"height":11}},{"id":"35495a83-4724-491a-9591-f1bcbda3d85f","block_type":"box","text":"their approach to corporate governance best aligns with the financial interests of their investors.","page_number":200,"box":{"x":68,"y":692,"width":687,"height":12}},{"id":"1ff8a931-8043-4350-bbc6-715bc9962bfe","block_type":"box","text":"OUR APPROACH TO STEWARDSHIP WITHIN ACTIVE EQUITIES","page_number":200,"box":{"x":263,"y":722,"width":451,"height":11}},{"id":"4d928a97-d91f-42c4-bef7-1ea4def4a19a","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":200,"box":{"x":101,"y":741,"width":753,"height":12}},{"id":"adecd239-367c-4f8a-96a1-1f2e11369fd9","block_type":"box","text":"governance. The voting rights attached to clients’ holdings are an impor tant mechanism for investors to express","page_number":200,"box":{"x":68,"y":756,"width":801,"height":11}},{"id":"8897a96e-dc9f-4fb1-a05b-b2a8c4cd79d2","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":200,"box":{"x":69,"y":771,"width":829,"height":11}},{"id":"444fdabb-e63a-44d9-9ea4-dfc7dd2586c5","block_type":"box","text":"voting determinations, on behalf of clients who have delegated voting authority to us, in a manner consistent with","page_number":200,"box":{"x":68,"y":786,"width":809,"height":11}},{"id":"c887c6fa-b2c7-4c99-97d0-e7c105313aaf","block_type":"box","text":"BlackRock’s contractual arrangements with clients and funds.","page_number":200,"box":{"x":70,"y":801,"width":438,"height":11}},{"id":"f6978838-46c1-4116-bf89-c27cd72a93ac","block_type":"box","text":"3","page_number":200,"box":{"x":69,"y":830,"width":4,"height":5}},{"id":"15dc7b8e-01ee-497b-bf1d-13f5fa48e744","block_type":"box","text":"On February 11, 2025, the U.S. Securities and Exchange Commission (SEC) staff issued updated guidance for","page_number":200,"box":{"x":79,"y":830,"width":790,"height":11}},{"id":"d5eb5196-2a92-47e9-8161-6fa7da65ee44","block_type":"box","text":"shareholders to maintain their eligibility to repor t their beneficial ownership under Schedule 13G of the Exchange Act.","page_number":200,"box":{"x":69,"y":845,"width":836,"height":11}},{"id":"c97297b4-9420-4581-a1d7-baee1a4611f5","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":200,"box":{"x":68,"y":860,"width":805,"height":11}},{"id":"27701339-911d-4d6f-a62a-5502f359b3d7","block_type":"box","text":"effect, of changing or influencing control of the company.","page_number":200,"box":{"x":69,"y":875,"width":403,"height":12}},{"id":"8c029c6e-ed7c-413e-951b-ad70726df978","block_type":"box","text":"4","page_number":200,"box":{"x":69,"y":893,"width":4,"height":5}},{"id":"1114e047-eee3-463b-a49f-46030243c8ea","block_type":"box","text":"References to the board, board directors or non-executive directors should be understood to include supervisory","page_number":200,"box":{"x":79,"y":893,"width":801,"height":11}},{"id":"91739624-0e60-427f-8138-e22cbfb70dd4","block_type":"box","text":"boards and their members, where relevant.","page_number":200,"box":{"x":69,"y":908,"width":306,"height":11}},{"id":"59044201-4dad-4106-8c14-e44665160f0d","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":200,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"54744355-aaef-4c2b-bed9-37e64fa44892","block_type":"box","text":"Global Engagement and Voting Guidelines | 4","page_number":200,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"528e7801-7882-4991-ab86-1927990378f0","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":200,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f8eb4b19-366c-4de8-9372-9242857f89c4","block_type":"box","text":"In general, we tend to suppor t the recommendations of the board of directors and management. As indicated","page_number":201,"box":{"x":102,"y":45,"width":778,"height":11}},{"id":"400121e8-a4eb-4464-997a-1d2fa695ecd7","block_type":"box","text":"below, we may vote against management recommendations when we have concerns about how companies are","page_number":201,"box":{"x":69,"y":60,"width":788,"height":11}},{"id":"2494cfdd-084d-45d6-8414-d446ec466f5b","block_type":"box","text":"serving the financial interests of our clients as their shareholders. BAIS takes a globally consistent approach to","page_number":201,"box":{"x":69,"y":74,"width":795,"height":12}},{"id":"2790de1c-fe5f-41e3-9615-5f169cf68321","block_type":"box","text":"voting but considers the different corporate governance regulations and norms across markets. Votes are determined","page_number":201,"box":{"x":68,"y":89,"width":839,"height":12}},{"id":"ce8bedc4-0104-4754-851f-59c69991b472","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":201,"box":{"x":69,"y":104,"width":823,"height":11}},{"id":"0b9cd6ae-66ac-45f5-abab-cfa06c06cd4e","block_type":"box","text":"Please see page 19 for more information about how we fulfill and oversee our investment stewardship","page_number":201,"box":{"x":69,"y":119,"width":729,"height":11}},{"id":"33263950-c624-4cd1-b7fc-2eb1ac989e7b","block_type":"box","text":"responsibilities for BlackRock’s non-index equity strategies.","page_number":201,"box":{"x":69,"y":134,"width":423,"height":11}},{"id":"aad76299-2e69-4401-a38a-3182c5e82ead","block_type":"box","text":"5","page_number":201,"box":{"x":493,"y":134,"width":5,"height":5}},{"id":"d33abc97-5bf9-4965-996e-e74eaa08b1db","block_type":"box","text":"OUR APPROACH TO STEWARDSHIP WITHIN FIXED INCOME","page_number":201,"box":{"x":272,"y":164,"width":434,"height":9}},{"id":"d7820549-67f3-44bd-8fae-e5682a690e80","block_type":"box","text":"Although fixed income investors do not have the right to vote at shareholder meetings, issuer engagement is a","page_number":201,"box":{"x":101,"y":183,"width":788,"height":11}},{"id":"41c5e34c-d05e-48aa-8ab2-876c2d81189c","block_type":"box","text":"component of fixed income investment strategies at BlackRock, par ticularly for those with sustainability objectives in","page_number":201,"box":{"x":69,"y":198,"width":831,"height":11}},{"id":"706f343c-aad0-4e5d-9cf2-65cf56c429be","block_type":"box","text":"addition to financial objectives. Most corporate governance-related fixed income engagements are under taken in","page_number":201,"box":{"x":69,"y":212,"width":801,"height":12}},{"id":"0c5cb1b3-3c49-4f5c-93bc-7f435e812f5b","block_type":"box","text":"conjunction with the active investment stewardship team, and often active equity investors. In addition to the topics","page_number":201,"box":{"x":69,"y":227,"width":824,"height":11}},{"id":"95c08f90-add9-4262-823b-526db7e37d88","block_type":"box","text":"listed below, engagement with fixed income investment teams may help inform an issuer’s approach to structuring","page_number":201,"box":{"x":70,"y":242,"width":816,"height":11}},{"id":"89ef8c1b-c32a-46f0-beb1-58d1bf13bcf0","block_type":"box","text":"specialist issuances and the standard terms and information in bond documentation.","page_number":201,"box":{"x":69,"y":257,"width":608,"height":11}},{"id":"b5d47cae-2474-4fce-97f8-78e64ab95810","block_type":"box","text":"5","page_number":201,"box":{"x":69,"y":302,"width":4,"height":4}},{"id":"44759ece-ff82-434f-86aa-5c459ec8ca8c","block_type":"box","text":"Non-index equity strategies include active equity holdings in BlackRock’s fundamental equity, systematic equity and","page_number":201,"box":{"x":79,"y":301,"width":820,"height":11}},{"id":"ae504604-a484-4664-ae43-3e422e769819","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":201,"box":{"x":69,"y":316,"width":822,"height":12}},{"id":"40bdb271-8039-48f0-aae1-8bb4a5fda765","block_type":"box","text":"extent those strategies hold voting securities or conduct issuer engagements.","page_number":201,"box":{"x":69,"y":332,"width":554,"height":11}},{"id":"c9a50b87-f6aa-452b-826a-057486cc91f5","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":201,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"eda41bda-c861-483f-9fc9-c2f5bc2f18a2","block_type":"box","text":"Global Engagement and Voting Guidelines | 5","page_number":201,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"825ec4e1-2580-42e2-8b88-10e83a1fc990","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":201,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e71c8e6a-8820-4976-a39c-685e12a36759","block_type":"box","text":"BOARDS OF DIRECTORS","page_number":202,"box":{"x":400,"y":45,"width":178,"height":9}},{"id":"7952db93-b29b-45c5-8fd7-b590bcbfa25f","block_type":"box","text":"Roles and responsibilities","page_number":202,"box":{"x":69,"y":67,"width":186,"height":11}},{"id":"2f21cbc4-c8d9-4c2d-9797-6e27641c81b0","block_type":"box","text":"There is widespread consensus that the foundation of good corporate governance is an effective board of","page_number":202,"box":{"x":101,"y":86,"width":754,"height":11}},{"id":"9baf51fd-6924-4d98-a06e-1364a3e85db9","block_type":"box","text":"directors that is able to advise and supervise management in an independent and objective manner.","page_number":202,"box":{"x":69,"y":101,"width":715,"height":11}},{"id":"b2fa5c42-f818-4e05-84dd-ed02efe5434c","block_type":"box","text":"6","page_number":202,"box":{"x":786,"y":101,"width":4,"height":5}},{"id":"420c9c6f-db79-49bf-937c-6789e34be72d","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":202,"box":{"x":101,"y":119,"width":765,"height":12}},{"id":"e436de77-6c10-42d6-a596-80d5841f8d79","block_type":"box","text":"realization of a company’s strategy, purpose and culture. These constructs are interdependent and, when aligned,","page_number":202,"box":{"x":69,"y":134,"width":811,"height":12}},{"id":"4fb1335e-34cf-43af-8e77-c312d6d60bf1","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":202,"box":{"x":69,"y":149,"width":822,"height":11}},{"id":"451b88b8-1529-4b77-a0f0-abe3e53aeb9c","block_type":"box","text":"of corporate or employee misconduct, and attract and retain the caliber of workers necessary to deliver financial","page_number":202,"box":{"x":69,"y":164,"width":799,"height":11}},{"id":"742dfb10-8d0c-4ed7-bc59-6ac571639f6b","block_type":"box","text":"per formance over time.","page_number":202,"box":{"x":70,"y":179,"width":164,"height":11}},{"id":"4b67f17c-8d61-4988-a3d0-babdeba50550","block_type":"box","text":"In overseeing the management of the company, the board ensures the necessary resources, policies and","page_number":202,"box":{"x":102,"y":198,"width":750,"height":11}},{"id":"7fb0adb0-acfb-417a-918a-76a274d81e87","block_type":"box","text":"procedures are in place to help management meet its strategic objectives within an agreed risk tolerance.","page_number":202,"box":{"x":70,"y":213,"width":753,"height":11}},{"id":"e34447d0-8530-4508-a4f7-cdd6939f4d52","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":202,"box":{"x":102,"y":231,"width":753,"height":11}},{"id":"0552c301-63fa-4a10-b65b-df2ff44615f0","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":202,"box":{"x":69,"y":246,"width":811,"height":11}},{"id":"890bfd3c-9940-42b0-b0c5-92555b275617","block_type":"box","text":"and other key executives, determining executive compensation, ensuring a rigorous audit, overseeing strategy","page_number":202,"box":{"x":69,"y":261,"width":783,"height":11}},{"id":"f3a6124d-1c94-4e32-aaf7-66b1e403259e","block_type":"box","text":"execution and risk management and engaging with shareholders, and other stakeholders, as necessary.","page_number":202,"box":{"x":69,"y":276,"width":742,"height":11}},{"id":"b2eab856-5538-45c1-bac4-8a62bbb4cebf","block_type":"box","text":"Composition and effectiveness","page_number":202,"box":{"x":69,"y":298,"width":224,"height":11}},{"id":"02753fe2-cad5-4d0c-a2e1-2ac6acb0881f","block_type":"box","text":"Appointment process","page_number":202,"box":{"x":68,"y":317,"width":152,"height":11}},{"id":"58d3aa6e-0cef-4f5d-8d22-38a5b381543b","block_type":"box","text":"A formal and transparent process for identifying and appointing director candidates is critical to ensuring the","page_number":202,"box":{"x":101,"y":335,"width":773,"height":12}},{"id":"335bc8c6-7400-459a-9dc6-d900ea748cf6","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":202,"box":{"x":69,"y":350,"width":792,"height":11}},{"id":"f1f122cc-0b6b-4b9f-b3a3-9262c25e9981","block_type":"box","text":"committee determines the general criteria given the company’s circumstances (","page_number":202,"box":{"x":69,"y":365,"width":568,"height":11}},{"id":"3d81154a-0d40-4374-a3a6-d68eb22141df","block_type":"box","text":"e.g.","page_number":202,"box":{"x":638,"y":367,"width":25,"height":9}},{"id":"bb104eef-98ed-4b07-a15c-bdaa1c54513f","block_type":"box","text":", sector, maturity, geographic","page_number":202,"box":{"x":666,"y":365,"width":204,"height":11}},{"id":"f9286245-2418-4281-acb6-910ea3c973e9","block_type":"box","text":"footprint) and any additional criteria for a specific role being filled (","page_number":202,"box":{"x":68,"y":380,"width":474,"height":11}},{"id":"e132afe8-fd75-403a-a957-31f9b21be1f0","block_type":"box","text":"e.g.","page_number":202,"box":{"x":544,"y":381,"width":25,"height":10}},{"id":"6c528e07-dd06-4282-8367-1dfc051d9746","block_type":"box","text":", financial exper tise, industry track record). To","page_number":202,"box":{"x":571,"y":380,"width":327,"height":11}},{"id":"1ac78fe0-1a29-44b7-bb99-dbd725e04dba","block_type":"box","text":"inform the process, we encourage companies to review the skills and experience of incumbent directors to identify","page_number":202,"box":{"x":70,"y":395,"width":815,"height":11}},{"id":"747f73d0-c8c1-4fc3-952a-f708443c3d86","block_type":"box","text":"any gaps and whether the skills and experience of a director candidate would be additive. We welcome disclosures","page_number":202,"box":{"x":69,"y":410,"width":817,"height":11}},{"id":"b06561b6-e680-470b-8432-91a8fbe39163","block_type":"box","text":"that explain how the board considered different skills and experience to ensure that the directors collectively can be","page_number":202,"box":{"x":68,"y":425,"width":829,"height":11}},{"id":"9ebfd39e-7b2d-4f01-8699-a96e33d3e3e5","block_type":"box","text":"effective in fulfilling their responsibilities. We assess a company’s board composition against that of its peer group","page_number":202,"box":{"x":69,"y":439,"width":821,"height":12}},{"id":"c98119e7-e96c-449d-aef1-37370bcabf35","block_type":"box","text":"and local market requirements.","page_number":202,"box":{"x":69,"y":455,"width":221,"height":10}},{"id":"33476d98-d671-47c2-9356-a3a3cd5e95ff","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":202,"box":{"x":102,"y":473,"width":798,"height":11}},{"id":"7f868701-e2dc-4b3c-be7a-8814c33cb8ed","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":202,"box":{"x":69,"y":488,"width":800,"height":11}},{"id":"3bdc88e4-a80f-4106-b30c-46ba9d0e1c63","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":202,"box":{"x":70,"y":503,"width":794,"height":11}},{"id":"ca97d1d5-633b-4b1c-a281-e8a46f51006e","block_type":"box","text":"committee, where a company has not demonstrated it has an appointment process that results in a high functioning","page_number":202,"box":{"x":69,"y":517,"width":830,"height":12}},{"id":"a65be06e-2c19-46b4-9f4a-94917d2f2e89","block_type":"box","text":"board with the appropriate complement of skills and experience amongst the directors to suppor t strong financial","page_number":202,"box":{"x":69,"y":532,"width":808,"height":12}},{"id":"6eaac086-d303-48f6-968e-8229c12b62c2","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":202,"box":{"x":70,"y":547,"width":808,"height":12}},{"id":"7993486d-356c-4776-ba32-3cb566a654d0","block_type":"box","text":"skills or experience to contribute to the board’s effectiveness.","page_number":202,"box":{"x":69,"y":562,"width":442,"height":11}},{"id":"a5d06faa-4d02-424b-93e7-0d914ab11bef","block_type":"box","text":"Independence","page_number":202,"box":{"x":70,"y":585,"width":99,"height":10}},{"id":"0be96d53-49ab-4884-a4e0-ca2156eac715","block_type":"box","text":"Director independence from management, significant shareholders or other stakeholders (","page_number":202,"box":{"x":102,"y":603,"width":642,"height":11}},{"id":"58533599-ff92-4ee8-97cd-2d7a379d7b3a","block_type":"box","text":"e.g.","page_number":202,"box":{"x":746,"y":605,"width":25,"height":9}},{"id":"75f1aacc-94d3-40b2-b5d4-f48114f04896","block_type":"box","text":", government or","page_number":202,"box":{"x":773,"y":604,"width":111,"height":10}},{"id":"33047eff-986f-4638-b03f-a1ecf803f17d","block_type":"box","text":"employees) is of paramount impor tance to the protection of the interests of minority shareholders such as","page_number":202,"box":{"x":69,"y":618,"width":759,"height":11}},{"id":"ba62059a-b59b-4715-92bf-8b593bc66fbc","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":202,"box":{"x":70,"y":633,"width":793,"height":11}},{"id":"58d18b41-050a-46b1-8648-2620befd216f","block_type":"box","text":"conflicts of interest or undue influence.","page_number":202,"box":{"x":69,"y":648,"width":278,"height":9}},{"id":"bb5adf43-6ef9-4f83-a400-2498c085ac4d","block_type":"box","text":"7","page_number":202,"box":{"x":349,"y":648,"width":4,"height":5}},{"id":"ca56c3b2-e801-4588-8ee6-5b410efea7ca","block_type":"box","text":"This also helps to ensure that board committees are composed of a","page_number":202,"box":{"x":358,"y":648,"width":486,"height":11}},{"id":"5b9db1d1-0b3c-40ea-a579-adc9a374fc1e","block_type":"box","text":"sufficient number of independent directors. Companies domiciled in markets with a higher threshold for board","page_number":202,"box":{"x":69,"y":663,"width":783,"height":11}},{"id":"4a98a422-d547-437b-9ba7-1e3c7765fe92","block_type":"box","text":"independence should meet those local requirements.","page_number":202,"box":{"x":70,"y":678,"width":378,"height":10}},{"id":"f0d5a3b0-ab4c-41cf-84ca-76a6c43a1f0e","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":202,"box":{"x":101,"y":696,"width":803,"height":11}},{"id":"e00bd5e7-e345-43b0-a79b-d57a1c8d06ca","block_type":"box","text":"independence. We may also vote against the election of the chair of the committee responsible for board","page_number":202,"box":{"x":70,"y":711,"width":748,"height":11}},{"id":"f12f497c-0e73-429f-a372-5a339b8a65b6","block_type":"box","text":"composition if this is a perennial issue.","page_number":202,"box":{"x":69,"y":726,"width":280,"height":11}},{"id":"a4efe2c4-6cd0-4efe-8873-f46416b02593","block_type":"box","text":"6","page_number":202,"box":{"x":69,"y":756,"width":4,"height":4}},{"id":"69e168b6-4e6a-46ff-8988-85931a615207","block_type":"box","text":"See the Corporate Governance Codes of Germany, Japan, and the UK, as well as the corporate governance","page_number":202,"box":{"x":93,"y":755,"width":763,"height":11}},{"id":"93c58f4d-4692-45f5-a7a1-4a1fbd30742e","block_type":"box","text":"principles of the US Business Roundtable as examples.","page_number":202,"box":{"x":94,"y":770,"width":394,"height":11}},{"id":"9afc28ba-5831-49d9-841d-f0eeb158feb8","block_type":"box","text":"7","page_number":202,"box":{"x":69,"y":788,"width":4,"height":5}},{"id":"62cb314a-9408-49be-b204-c216d402542c","block_type":"box","text":"Common impediments to independence may include but are not limited to: current or recent employment at the","page_number":202,"box":{"x":93,"y":788,"width":795,"height":11}},{"id":"31706111-c47e-4789-b9e2-d1ac20eead2d","block_type":"box","text":"company or a subsidiary; being, or representing, a shareholder with a substantial shareholding in the company;","page_number":202,"box":{"x":93,"y":803,"width":793,"height":11}},{"id":"2dfa4ee3-a3b1-4212-b63b-4966b01ad203","block_type":"box","text":"interlocking directorships; lengthy tenure, and having any other interest, business, or other relationship which","page_number":202,"box":{"x":94,"y":818,"width":778,"height":11}},{"id":"5a78ee63-a3ed-4509-b015-fdea8e1755d7","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":202,"box":{"x":93,"y":833,"width":807,"height":11}},{"id":"a3588d8d-f375-4cf3-af62-74c4da9286f4","block_type":"box","text":"of the company and shareholders.","page_number":202,"box":{"x":93,"y":848,"width":242,"height":11}},{"id":"1c5b7ee8-5cb0-4359-8fec-178a454825ac","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":202,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"cb2bfd5a-24fb-4525-b0fc-b7312f43ba86","block_type":"box","text":"Global Engagement and Voting Guidelines | 6","page_number":202,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"9f0f676a-adca-4516-b439-4eb808c56af8","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":202,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8adcf106-d9b7-4d8c-aded-11bcf54e9a2b","block_type":"box","text":"Independent board leadership","page_number":203,"box":{"x":70,"y":45,"width":212,"height":11}},{"id":"c61d5170-1f40-4ebe-961f-e2d8f27d407b","block_type":"box","text":"Practices across markets differ, as do board structures, but we observe two main approaches to independent","page_number":203,"box":{"x":102,"y":63,"width":784,"height":11}},{"id":"3850eef7-d0eb-4bff-b4c3-eb702d574f87","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":203,"box":{"x":69,"y":78,"width":827,"height":11}},{"id":"6ab10114-1043-4817-a40d-1565be1b0da3","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":203,"box":{"x":68,"y":93,"width":774,"height":11}},{"id":"05db83c9-33d8-47c3-ac70-dbb1845be015","block_type":"box","text":"coordinating with the other non-executive directors and working closely with the executive chair on the board agenda","page_number":203,"box":{"x":69,"y":108,"width":826,"height":11}},{"id":"2082ac5a-f06e-4534-893f-2065ece30e1d","block_type":"box","text":"and other board procedures. In this case, the executive chair and the lead independent director work together to","page_number":203,"box":{"x":69,"y":123,"width":801,"height":11}},{"id":"7c353de9-10f3-4c9a-b002-ac64c32d449b","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":203,"box":{"x":69,"y":138,"width":823,"height":11}},{"id":"8fbacb7f-1d0b-42d6-ba84-c8d1a606f4f3","block_type":"box","text":"the chair of a relevant committee, should be available to investors to discuss governance matters such as CEO","page_number":203,"box":{"x":68,"y":152,"width":793,"height":12}},{"id":"0c6d347f-d657-4410-8f06-e87c48a4ed28","block_type":"box","text":"succession, executive pay, and board per formance. We look to boards to explain their board leadership model and","page_number":203,"box":{"x":69,"y":167,"width":816,"height":11}},{"id":"ed05187c-b272-4d27-b12c-f605d5c16df7","block_type":"box","text":"how it serves the interests of shareholders.","page_number":203,"box":{"x":69,"y":182,"width":311,"height":9}},{"id":"3b90b192-5a31-497b-8f05-46df87e71bde","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":203,"box":{"x":101,"y":201,"width":798,"height":11}},{"id":"9cef3625-4c99-4c37-9f63-c59b24273a94","block_type":"box","text":"an identified independent leader of the board with clear responsibilities for board per formance. We may vote against","page_number":203,"box":{"x":69,"y":216,"width":831,"height":11}},{"id":"de76e83a-2a77-4c7b-baed-ae3fa3bcd224","block_type":"box","text":"the most senior independent director if the board has a policy of not engaging with shareholders.","page_number":203,"box":{"x":68,"y":231,"width":691,"height":11}},{"id":"20984c06-cb89-422a-956b-35f28c605ee6","block_type":"box","text":"Tenure and succession","page_number":203,"box":{"x":70,"y":253,"width":162,"height":9}},{"id":"743a9ea4-c461-434d-aaeb-304f0ffffb7d","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":203,"box":{"x":102,"y":272,"width":803,"height":11}},{"id":"93c9f306-1f31-4d8e-8819-7839f29214e2","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":203,"box":{"x":69,"y":286,"width":805,"height":11}},{"id":"ec180a82-d05e-4a9f-8c96-05bcb7dcfcbb","block_type":"box","text":"director tenure par ticularly around the contributions of directors who have served for longer periods than typically","page_number":203,"box":{"x":69,"y":301,"width":806,"height":12}},{"id":"1094cbc3-e992-4781-b679-a34ca7e96795","block_type":"box","text":"provided for under local practice. In our experience, long-serving directors could become less independent given their","page_number":203,"box":{"x":70,"y":316,"width":833,"height":12}},{"id":"ca14845b-7409-4e44-8f17-89551315636c","block_type":"box","text":"long-term relationship with management and involvement in past board decisions.","page_number":203,"box":{"x":70,"y":331,"width":581,"height":11}},{"id":"424b560b-6007-4adb-aafc-761c9816db61","block_type":"box","text":"Succession planning for board roles helps achieve the appropriate cadence of turnover that balances renewal","page_number":203,"box":{"x":102,"y":350,"width":779,"height":11}},{"id":"a3197a6c-431e-4003-bc95-ca35f4329928","block_type":"box","text":"through the regular introduction of directors with fresh perspectives and exper tise with continuity through the","page_number":203,"box":{"x":68,"y":365,"width":777,"height":11}},{"id":"e5486765-7b91-4b1c-aeb4-aabf096de795","block_type":"box","text":"retention of directors with long-term knowledge of the board and company.","page_number":203,"box":{"x":69,"y":379,"width":528,"height":12}},{"id":"959f0b71-6c7b-440b-a1fa-30d9d6e1d9ad","block_type":"box","text":"In markets where there is not specific director tenure guidance from regulation or corporate governance best","page_number":203,"box":{"x":102,"y":398,"width":774,"height":11}},{"id":"89cf6641-445c-4e6b-9c79-202965bda855","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":203,"box":{"x":70,"y":413,"width":795,"height":11}},{"id":"93c204c2-8f31-4002-96fd-fed476fedd58","block_type":"box","text":"company does not clearly disclose its approach to director tenure and board renewal. We may vote against the","page_number":203,"box":{"x":69,"y":428,"width":788,"height":11}},{"id":"2604458b-4f2f-4b64-b151-e59345221aa6","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":203,"box":{"x":69,"y":443,"width":839,"height":11}},{"id":"01014180-3696-4261-aa30-5398932e9bbc","block_type":"box","text":"for their continued service is not evident.","page_number":203,"box":{"x":68,"y":458,"width":292,"height":9}},{"id":"3b490a2f-dd59-413f-8f7b-4d7bb0ecb484","block_type":"box","text":"Capacity","page_number":203,"box":{"x":70,"y":480,"width":60,"height":11}},{"id":"0449aa95-9475-4cd0-8e08-304b6f438bb4","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":203,"box":{"x":101,"y":499,"width":784,"height":11}},{"id":"712e93fc-5b9c-4826-91ba-8e7bcb0c703b","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":203,"box":{"x":69,"y":513,"width":801,"height":12}},{"id":"5dc453de-f231-4ad0-8de6-b864a460511a","block_type":"box","text":"company taking into consideration competing responsibilities. We recognize that board leadership roles vary across","page_number":203,"box":{"x":69,"y":529,"width":823,"height":11}},{"id":"2da34964-9984-4f78-9758-fd0c55b17e70","block_type":"box","text":"markets in responsibilities and required time commitment but note that they are generally more intensive than a","page_number":203,"box":{"x":69,"y":543,"width":800,"height":11}},{"id":"7b3320cc-39e9-4874-b85d-c286d8739a0a","block_type":"box","text":"standard directorship. We will take local norms and practices into consideration when making our voting","page_number":203,"box":{"x":69,"y":558,"width":741,"height":11}},{"id":"41b537d4-5500-4aa0-aca0-9cf0120bf736","block_type":"box","text":"determinations across markets.","page_number":203,"box":{"x":69,"y":573,"width":226,"height":9}},{"id":"31e411ed-be8a-49da-b330-f6a94fc8a6b7","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":203,"box":{"x":101,"y":592,"width":776,"height":11}},{"id":"e1d65837-f16c-43f9-824f-566302466e87","block_type":"box","text":"their duties to the board and company.","page_number":203,"box":{"x":68,"y":607,"width":275,"height":11}},{"id":"e3830181-0a91-4ab2-886a-2a3d89b3a649","block_type":"box","text":"Director elections","page_number":203,"box":{"x":70,"y":629,"width":124,"height":9}},{"id":"2836774c-09ab-44ee-a4c6-e6c8d4c31673","block_type":"box","text":"Regular election of directors, ideally annually, suppor ts director accountability to shareholders. A classified board","page_number":203,"box":{"x":102,"y":647,"width":805,"height":12}},{"id":"763138e3-d587-48b4-baea-05d98664f9b2","block_type":"box","text":"structure","page_number":203,"box":{"x":69,"y":663,"width":63,"height":8}},{"id":"3942a455-e904-455a-b4ec-02ecda481bd0","block_type":"box","text":"8","page_number":203,"box":{"x":133,"y":663,"width":4,"height":4}},{"id":"17a16f9f-7755-4211-8e34-dba5d89b852e","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":203,"box":{"x":144,"y":662,"width":761,"height":12}},{"id":"eaefc90d-4d0f-44eb-8bd8-575af34fdf95","block_type":"box","text":"basis of its business model (","page_number":203,"box":{"x":69,"y":677,"width":206,"height":11}},{"id":"074b5729-17b3-42f4-a07b-d653d39d8c49","block_type":"box","text":"e.g.","page_number":203,"box":{"x":277,"y":679,"width":24,"height":10}},{"id":"d2478a83-0bce-4589-8fe7-356946c40ebb","block_type":"box","text":", a non-operating company such as closed-end funds).","page_number":203,"box":{"x":304,"y":677,"width":382,"height":12}},{"id":"943e5fcb-d9d0-48e1-9b64-9a54835cc897","block_type":"box","text":"Shareholders should have the oppor tunity to evaluate nominated directors individually rather than in bundled","page_number":203,"box":{"x":102,"y":696,"width":774,"height":11}},{"id":"dce73ccd-b0ee-421d-9cb7-2f661952bcf6","block_type":"box","text":"slates. We look to companies to provide sufficient information on each director standing for election so that","page_number":203,"box":{"x":69,"y":711,"width":770,"height":11}},{"id":"1c53107a-df8f-49d8-87c3-e4873a858e92","block_type":"box","text":"shareholders can assess their capabilities and suitability. We will generally not suppor t the election of directors","page_number":203,"box":{"x":69,"y":726,"width":794,"height":11}},{"id":"ced972c9-5902-4fae-aa48-ef789ad955b3","block_type":"box","text":"whose names and biographical details have not been disclosed sufficiently in advance of the shareholder meeting.","page_number":203,"box":{"x":68,"y":740,"width":818,"height":12}},{"id":"441d4296-81a5-4ecf-aa4f-71d44bb371c9","block_type":"box","text":"Each director’s appointment should be dependent on receiving a simple majority of the votes cast at the","page_number":203,"box":{"x":102,"y":759,"width":743,"height":11}},{"id":"7743e53e-8df4-4cd4-ad9c-b34cd84b5fca","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":203,"box":{"x":69,"y":774,"width":823,"height":11}},{"id":"e0459275-b594-4d4e-9c5d-00855fd13ede","block_type":"box","text":"to how its approach best serves investors’ interests.","page_number":203,"box":{"x":68,"y":789,"width":377,"height":11}},{"id":"61d28ed1-8eb6-45d5-bee7-8a93ea269af4","block_type":"box","text":"We may vote for shareholder or management proposals seeking to establish annual election of directors and/or","page_number":203,"box":{"x":101,"y":807,"width":798,"height":12}},{"id":"6292badf-a487-4905-a7b8-3e38d39394cf","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":203,"box":{"x":69,"y":822,"width":822,"height":12}},{"id":"dd39999f-19c0-44a7-9039-77514a255b9f","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":203,"box":{"x":70,"y":837,"width":706,"height":12}},{"id":"10804764-6d9d-45d7-a15e-e58638503d50","block_type":"box","text":"8","page_number":203,"box":{"x":69,"y":867,"width":4,"height":4}},{"id":"3e6f0b12-8177-4894-9c44-7dc63f12e377","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":203,"box":{"x":78,"y":866,"width":818,"height":12}},{"id":"1b032173-2ca6-4775-8f04-26259fc9e218","block_type":"box","text":"directors stands for election in any one year.","page_number":203,"box":{"x":69,"y":882,"width":315,"height":11}},{"id":"63d11eb3-6464-4c17-8c9f-5b0a0c002ca5","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":203,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"430a5e63-79fd-4f42-873a-d808b3649281","block_type":"box","text":"Global Engagement and Voting Guidelines | 7","page_number":203,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"995cb371-29f7-436c-bfbe-b71bd787dc4b","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":203,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9dac086c-d7fa-4fdb-8562-4b5ed2178664","block_type":"box","text":"Committees","page_number":204,"box":{"x":70,"y":45,"width":84,"height":9}},{"id":"8ee4f8f6-f0ce-4e3e-9aec-2a8f1f1b57fd","block_type":"box","text":"Many boards establish committees to focus on specific responsibilities of the board such as audit and risk,","page_number":204,"box":{"x":102,"y":63,"width":766,"height":11}},{"id":"dff974be-64bd-4da5-900f-efdfed9a820f","block_type":"box","text":"governance and human capital, and executive compensation, amongst other matters. We do not prescribe to","page_number":204,"box":{"x":68,"y":78,"width":776,"height":11}},{"id":"3c63a085-4249-4612-ae8a-d8fe7d3381c0","block_type":"box","text":"companies what committees they should establish, but we seek to understand the board’s rationale for the","page_number":204,"box":{"x":69,"y":93,"width":766,"height":11}},{"id":"009b4a0d-b883-411a-8b73-c60b8c24322d","block_type":"box","text":"committee structure it determines is appropriate. We note that, in some markets, regulation requires such","page_number":204,"box":{"x":69,"y":108,"width":759,"height":11}},{"id":"2fc1327c-214e-4c79-bfd5-4309376afb3c","block_type":"box","text":"committees. The responsibilities of each committee should be clear, and the board should ensure that all critical","page_number":204,"box":{"x":69,"y":123,"width":804,"height":11}},{"id":"589eb17f-4d21-4094-bc37-e54e0dfd8179","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":204,"box":{"x":69,"y":138,"width":837,"height":11}},{"id":"bbb0871d-2b0a-4d1e-9a5e-8c4af2cc1f8d","block_type":"box","text":"the board discloses the structure, membership, propor tion of independent directors, and responsibilities of each","page_number":204,"box":{"x":68,"y":152,"width":806,"height":11}},{"id":"f62c0e65-7b88-4960-ac90-db1449135f6f","block_type":"box","text":"committee. The responsibilities we typically see assigned to the three most common committees include:","page_number":204,"box":{"x":69,"y":168,"width":752,"height":11}},{"id":"270ef52c-2be8-411e-8d59-a34fa715bd8e","block_type":"box","text":"•","page_number":204,"box":{"x":69,"y":188,"width":6,"height":4}},{"id":"8316b775-7cd1-446f-84fd-29762279defd","block_type":"box","text":"Audit and risk – oversight responsibilities for the integrity of financial repor ting, risk management and","page_number":204,"box":{"x":101,"y":185,"width":722,"height":11}},{"id":"4a15d2f0-3020-4b32-b86b-21afc9510d9c","block_type":"box","text":"compliance with legal and regulatory requirements; may also play an oversight role in relation to the internal","page_number":204,"box":{"x":101,"y":200,"width":771,"height":11}},{"id":"88cbf87a-4254-4eb1-944f-71cf8b98ff99","block_type":"box","text":"audit function and whistleblowing mechanisms.","page_number":204,"box":{"x":102,"y":214,"width":335,"height":12}},{"id":"e5c4cc4e-a793-4ec4-bfc3-b84e0c5869a8","block_type":"box","text":"•","page_number":204,"box":{"x":69,"y":235,"width":6,"height":4}},{"id":"f4bf36e9-89b8-4ea5-a4ce-50df44d66ce6","block_type":"box","text":"Nominating, governance and human capital – oversight responsibilities for corporate governance principles and","page_number":204,"box":{"x":102,"y":232,"width":790,"height":11}},{"id":"fd601f89-e119-4c3e-ab73-022f1621bb4c","block_type":"box","text":"practices of the company, including the periodic review of board per formance; responsibility for succession","page_number":204,"box":{"x":102,"y":247,"width":761,"height":11}},{"id":"2841a6d2-a13a-4d2c-9582-00c9f3d334c8","block_type":"box","text":"planning for CEO and key board roles, as well as the director appointment process; may also have oversight","page_number":204,"box":{"x":102,"y":262,"width":769,"height":11}},{"id":"751d9390-850d-40ff-b3c0-9c7e1c28f359","block_type":"box","text":"responsibilities for human capital management strategies, including corporate culture and purpose.","page_number":204,"box":{"x":102,"y":276,"width":707,"height":12}},{"id":"7b4d8229-b2c3-4c5f-8856-e5c4a5bb5335","block_type":"box","text":"•","page_number":204,"box":{"x":69,"y":297,"width":6,"height":4}},{"id":"3bcf0969-4d74-4330-b179-b6f032efc751","block_type":"box","text":"Executive compensation – determines the compensation policies and programs for the CEO and other executive","page_number":204,"box":{"x":102,"y":294,"width":796,"height":11}},{"id":"cb17f75d-88a5-41d4-8b69-ba5f7a6c541d","block_type":"box","text":"officers, approves annual awards and payments under the policies; may also have oversight responsibilities for","page_number":204,"box":{"x":102,"y":309,"width":793,"height":11}},{"id":"5b1d2915-2e25-4b08-8766-fab72f73205f","block_type":"box","text":"firm-wide compensation policies.","page_number":204,"box":{"x":101,"y":323,"width":232,"height":11}},{"id":"518b0ca7-9087-4a39-9b7f-d209d862ab82","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":204,"box":{"x":101,"y":342,"width":807,"height":11}},{"id":"2804f996-c0f9-4469-9fb3-472b15dd33e8","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":204,"box":{"x":68,"y":357,"width":828,"height":11}},{"id":"74dc300d-4f1c-4a47-b99f-aba71cba5902","block_type":"box","text":"the most senior non-executive director if there is not a clearly disclosed approach to board committees.","page_number":204,"box":{"x":68,"y":372,"width":738,"height":11}},{"id":"aba889a1-541e-47ea-aa75-b131953f8b6b","block_type":"box","text":"Board and director evaluation","page_number":204,"box":{"x":70,"y":395,"width":209,"height":8}},{"id":"62dc5f15-d97b-4a59-b393-c98990b3c838","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":204,"box":{"x":101,"y":413,"width":776,"height":11}},{"id":"97acfe57-b28b-4d04-826a-212b23c12384","block_type":"box","text":"committees, the chair and individual directors. Periodically, this review could be under taken by an independent third","page_number":204,"box":{"x":69,"y":428,"width":825,"height":11}},{"id":"6c469e14-8b91-49b8-a28b-f839b2a893f9","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":204,"box":{"x":70,"y":443,"width":831,"height":11}},{"id":"ca18d1e9-b74f-499c-81f0-f8370a792659","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":204,"box":{"x":69,"y":458,"width":835,"height":11}},{"id":"7a7f3ae9-d3aa-4f24-88ce-f55bf510dbe7","block_type":"box","text":"a result.","page_number":204,"box":{"x":69,"y":473,"width":57,"height":8}},{"id":"4e184100-5585-4134-80c8-334738dbca10","block_type":"box","text":"Access to independent advice","page_number":204,"box":{"x":68,"y":495,"width":214,"height":11}},{"id":"345f0c38-e655-45c7-9073-dc3474ded082","block_type":"box","text":"To suppor t the directors in effectively fulfilling their duties to the company and shareholders, they should have","page_number":204,"box":{"x":101,"y":513,"width":786,"height":12}},{"id":"701a502d-ba87-4f9d-b984-b402aad8e00c","block_type":"box","text":"access to independent advice. In cer tain circumstances, it may be helpful to boards to retain independent third","page_number":204,"box":{"x":69,"y":528,"width":793,"height":11}},{"id":"7f13cf44-fc41-436c-84af-a88be16cd155","block_type":"box","text":"par ties to advise on critical matters. These might include new industry developments such as emergent and","page_number":204,"box":{"x":70,"y":543,"width":770,"height":11}},{"id":"e26ef575-629f-4f41-b670-d8f9498a5fd4","block_type":"box","text":"disruptive technology, operating events with material consequences for the company’s reputation and/or","page_number":204,"box":{"x":69,"y":558,"width":746,"height":11}},{"id":"237208db-782f-476c-915a-9e436551a8f2","block_type":"box","text":"per formance, or significant transactions. Board committees may similarly retain third par ties to advise them on","page_number":204,"box":{"x":70,"y":573,"width":793,"height":11}},{"id":"6719818b-9fa5-4556-929c-d3f5ad222c86","block_type":"box","text":"specialist matters such as audit, compensation and succession planning.","page_number":204,"box":{"x":69,"y":588,"width":524,"height":11}},{"id":"0207735d-a08f-4400-8124-25387c9c3194","block_type":"box","text":"EXECUTIVE COMPENSATION","page_number":204,"box":{"x":385,"y":618,"width":207,"height":9}},{"id":"2999f11e-bf7c-4f6c-9a39-b5077fb1892c","block_type":"box","text":"Boards play an impor tant role in establishing compensation arrangements that enable the company to recruit,","page_number":204,"box":{"x":102,"y":637,"width":784,"height":11}},{"id":"8d1d6de1-e683-485b-8bc9-567f1fbf55df","block_type":"box","text":"retain and reward the caliber of executive management necessary to lead and operate the company to deliver","page_number":204,"box":{"x":69,"y":652,"width":782,"height":11}},{"id":"3937699a-af58-4260-81a4-b412af4083f5","block_type":"box","text":"superior financial returns over time. We focus on alignment between variable pay and a company’s financial","page_number":204,"box":{"x":69,"y":666,"width":766,"height":12}},{"id":"941a11e4-9f1f-49e5-992e-f282cdbe7d67","block_type":"box","text":"per formance.","page_number":204,"box":{"x":70,"y":681,"width":93,"height":11}},{"id":"2aa9ac0a-1a91-4190-a451-0ef9f3ce5590","block_type":"box","text":"Generally, executive compensation arrangements have four components: base salary, annual bonus that rewards","page_number":204,"box":{"x":102,"y":700,"width":805,"height":11}},{"id":"6ea2d159-1c18-44ff-b7c3-f4281d98c27b","block_type":"box","text":"per formance against shor t-term metrics, incentives – most often share-based that reward per formance against long","page_number":204,"box":{"x":70,"y":715,"width":831,"height":11}},{"id":"20721f41-6e9f-45f7-aef2-6f5d34b779e2","block_type":"box","text":"term metrics, and pensions and benefits. In our observation, base salary, pensions and benefits are largely set","page_number":204,"box":{"x":68,"y":730,"width":798,"height":11}},{"id":"a7e71674-a220-460b-9b24-c2b7b3726bdf","block_type":"box","text":"relative to market norms and benchmarks. The annual bonus and share-based incentive, or variable pay plans, tend","page_number":204,"box":{"x":69,"y":745,"width":824,"height":11}},{"id":"f4168102-cc80-4be1-8e93-2ec6d1f1fdb7","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":204,"box":{"x":68,"y":760,"width":807,"height":11}},{"id":"242a6d8a-fc3d-49a9-8e02-e165295dc201","block_type":"box","text":"recruit and motivate.","page_number":204,"box":{"x":69,"y":774,"width":146,"height":9}},{"id":"0f4580a8-3929-42ae-b2f8-36d4da8982e3","block_type":"box","text":"Recognizing the unique circumstances of each company, we determine whether to suppor t a company’s","page_number":204,"box":{"x":102,"y":793,"width":739,"height":11}},{"id":"bf1ab492-096d-4fb5-9a75-42f01de370c2","block_type":"box","text":"approach to executive compensation on a case-by-case basis. We rely on companies providing sufficient quantitative","page_number":204,"box":{"x":69,"y":808,"width":831,"height":11}},{"id":"33f69fab-6c2c-411b-b8ab-ee4e986ef4fd","block_type":"box","text":"and qualitative information in their disclosures to enable shareholders to understand the compensation","page_number":204,"box":{"x":69,"y":823,"width":737,"height":11}},{"id":"f405f62a-6e18-4319-aa17-1fac36aae7f6","block_type":"box","text":"arrangements and assess the alignment with investors’ interests. Features we look for in compensation","page_number":204,"box":{"x":69,"y":837,"width":741,"height":12}},{"id":"6d207657-4e75-427d-b48e-292ef1d26dc1","block_type":"box","text":"arrangements include:","page_number":204,"box":{"x":69,"y":853,"width":157,"height":11}},{"id":"ee2dc0fb-182a-4495-842b-88892ad6467f","block_type":"box","text":"•","page_number":204,"box":{"x":69,"y":873,"width":6,"height":4}},{"id":"744c3e3b-7bdb-4506-833a-b9f16fac2780","block_type":"box","text":"Fixed pay components, including base salary, benefits and prerequisites that are appropriate in the context of","page_number":204,"box":{"x":102,"y":870,"width":783,"height":11}},{"id":"42647be5-c048-4dc5-bb71-83f89cc1f722","block_type":"box","text":"the company’s size, sector and market.","page_number":204,"box":{"x":101,"y":885,"width":280,"height":11}},{"id":"82bf49fd-3468-4d51-a347-7886a8596075","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":204,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"a62f3bf8-681d-4eba-9aec-fde10866383a","block_type":"box","text":"Global Engagement and Voting Guidelines | 8","page_number":204,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"2697564f-973f-4341-87a2-c3386f31d29a","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":204,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"76f0e628-b26e-4700-bc28-15f8863c2acc","block_type":"box","text":"•","page_number":205,"box":{"x":69,"y":48,"width":6,"height":4}},{"id":"f0ab62ee-ea42-404b-9c9c-08a67f1bbdf4","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":205,"box":{"x":101,"y":45,"width":752,"height":11}},{"id":"01c7e814-06d1-46fc-a04f-ae8060772530","block_type":"box","text":"strategic objectives.","page_number":205,"box":{"x":102,"y":60,"width":140,"height":11}},{"id":"25f7ba66-ffc0-4c0b-a3a5-b3d81b62b37b","block_type":"box","text":"•","page_number":205,"box":{"x":69,"y":80,"width":6,"height":4}},{"id":"72dab8ac-6449-43ca-8df5-af0b99a94b77","block_type":"box","text":"Long-term incentives that motivate sustained per formance across a multi-year period.","page_number":205,"box":{"x":102,"y":77,"width":609,"height":11}},{"id":"cce8e423-2c13-4b86-b3fe-a84869237c2a","block_type":"box","text":"•","page_number":205,"box":{"x":69,"y":97,"width":6,"height":5}},{"id":"e17edac9-3f82-4620-bafa-463a43c4ba57","block_type":"box","text":"A balance between fixed and variable pay, shor t- and long-term incentives, and specific instruments (cash and","page_number":205,"box":{"x":101,"y":94,"width":784,"height":12}},{"id":"eca3a47d-6c77-4a9e-bd65-98ed7f05716a","block_type":"box","text":"equity awards) that promotes pay program durability and seldom necessitates one-off, discretionary payments.","page_number":205,"box":{"x":101,"y":109,"width":790,"height":11}},{"id":"ea4b648e-253b-4921-8900-a246348ed749","block_type":"box","text":"•","page_number":205,"box":{"x":69,"y":129,"width":6,"height":5}},{"id":"c585edeb-9855-4ca1-b02d-590b09f1bae7","block_type":"box","text":"Pay outcomes that are consistent with the returns to investors over the relevant time period.","page_number":205,"box":{"x":102,"y":127,"width":658,"height":11}},{"id":"1ea53683-3f8c-48cf-a26a-3c4176caa0fb","block_type":"box","text":"•","page_number":205,"box":{"x":69,"y":147,"width":6,"height":4}},{"id":"cb6a1727-e0b4-4870-944a-2b0e1f9ff70a","block_type":"box","text":"Board discretion, if allowed within the variable pay arrangements, to be used sparingly, responsibly and","page_number":205,"box":{"x":102,"y":144,"width":735,"height":11}},{"id":"9ce1d25a-f436-4fd9-8c86-d159d703f854","block_type":"box","text":"transparently.","page_number":205,"box":{"x":101,"y":159,"width":95,"height":11}},{"id":"d4b24068-4455-46d1-a0bd-9d37b67aa48e","block_type":"box","text":"•","page_number":205,"box":{"x":69,"y":179,"width":6,"height":5}},{"id":"6bd6c730-fb39-4659-8f10-da7a83bc17e1","block_type":"box","text":"A requirement, that par ticipants in long-term share-based incentive plans build a meaningful shareholding in the","page_number":205,"box":{"x":101,"y":176,"width":798,"height":11}},{"id":"d39d5dde-0576-4dfe-8338-c020ea006c52","block_type":"box","text":"company within a defined time period, as determined by the board or relevant board committee.","page_number":205,"box":{"x":101,"y":191,"width":683,"height":11}},{"id":"83d72898-1c8b-4df2-84ed-bc1b4962967d","block_type":"box","text":"•","page_number":205,"box":{"x":69,"y":211,"width":6,"height":5}},{"id":"5c014b3d-fba8-413f-a9c6-3585ef849aec","block_type":"box","text":"Change of control provisions that appropriately balance the interests of executives and shareholders.","page_number":205,"box":{"x":102,"y":208,"width":720,"height":12}},{"id":"3db38718-1368-4ad6-961c-59a2625b3fbc","block_type":"box","text":"•","page_number":205,"box":{"x":69,"y":229,"width":6,"height":4}},{"id":"765c3f43-e971-4e7b-828c-24ed1a91f326","block_type":"box","text":"Clawback or malus provisions that allow the company to recoup or hold back variable compensation from","page_number":205,"box":{"x":102,"y":226,"width":747,"height":11}},{"id":"e63e2a8b-fc4f-4328-b85b-f35a3b75e5a6","block_type":"box","text":"individuals whose awards were based on fraudulent activities, misstated financial repor ts, or executive","page_number":205,"box":{"x":102,"y":241,"width":733,"height":11}},{"id":"54fc163a-19a7-4b52-bb50-3456ceb2c1c8","block_type":"box","text":"misconduct.","page_number":205,"box":{"x":102,"y":256,"width":84,"height":8}},{"id":"c4d3b8a5-4ac2-410a-9ba2-30a36d4ae4f6","block_type":"box","text":"•","page_number":205,"box":{"x":69,"y":276,"width":6,"height":4}},{"id":"818bd848-aefd-411b-bf95-d11a68624895","block_type":"box","text":"Severance arrangements that protect the company’s interests but do not cost more than is contractual.","page_number":205,"box":{"x":102,"y":273,"width":738,"height":11}},{"id":"ec5deeaf-e5e0-4b0c-a171-6b1290ce87c9","block_type":"box","text":"We may vote against proposals to introduce new share-based incentives, approve existing policies or plans, or","page_number":205,"box":{"x":101,"y":292,"width":787,"height":11}},{"id":"b31d4846-1983-4f3b-bdfc-b1e78921eab6","block_type":"box","text":"approve the compensation repor t where we do not see alignment between executive compensation arrangements","page_number":205,"box":{"x":69,"y":307,"width":810,"height":11}},{"id":"cdba34e2-0f09-4848-8581-a22582965e44","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":205,"box":{"x":69,"y":321,"width":831,"height":11}},{"id":"7a9d9f78-8416-4c41-8b43-dc9a2a03b9ee","block_type":"box","text":"compensation misaligned with per formance, we may vote against the election of the chair of the responsible","page_number":205,"box":{"x":69,"y":336,"width":775,"height":11}},{"id":"f6926eba-351c-4b06-a0de-3640f8d73a85","block_type":"box","text":"committee, or the most senior independent director.","page_number":205,"box":{"x":69,"y":351,"width":371,"height":11}},{"id":"1a35f152-51b0-4a9d-a7ed-cf43f5bcef9a","block_type":"box","text":"NON-EXECUTIVE DIRECTOR COMPENSATION","page_number":205,"box":{"x":326,"y":381,"width":325,"height":9}},{"id":"bd47b5ce-4e76-4d83-bc05-71b778711828","block_type":"box","text":"Companies generally pay non-executive directors an annual retainer or fee in cash, shares or a combination of","page_number":205,"box":{"x":102,"y":400,"width":785,"height":11}},{"id":"c7c74e50-00b1-4ac5-a23a-5d53ca5bfea2","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":205,"box":{"x":68,"y":415,"width":831,"height":11}},{"id":"de3c4239-d22e-4760-9842-19375ba959cc","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":205,"box":{"x":69,"y":430,"width":825,"height":11}},{"id":"327fc3ae-0109-4111-ba50-fb29ace01621","block_type":"box","text":"conflict of interest and undermine their independence from management, whom they oversee.","page_number":205,"box":{"x":69,"y":444,"width":668,"height":12}},{"id":"c150530c-c996-4e39-ae2b-9975dada5b11","block_type":"box","text":"CAPITAL STRUCTURE","page_number":205,"box":{"x":411,"y":475,"width":156,"height":8}},{"id":"77691103-a807-4226-aaff-3fc6d6ad570e","block_type":"box","text":"Boards are responsible for ensuring senior executive leadership has established a capital strategy that achieves","page_number":205,"box":{"x":102,"y":493,"width":800,"height":12}},{"id":"bbbf1706-433f-4be4-897b-f1ed64e9f4d9","block_type":"box","text":"appropriate capital allocation in suppor t of long-term financial resilience.","page_number":205,"box":{"x":69,"y":508,"width":516,"height":11}},{"id":"d0bdfc32-c20a-4383-b47e-2f7ef8311e5e","block_type":"box","text":"Where company practices diverge from those set out below, we look for companies to disclose why they view","page_number":205,"box":{"x":101,"y":527,"width":776,"height":11}},{"id":"a57ccbd4-7dcf-438a-b362-bc2df982bb54","block_type":"box","text":"these practices to be aligned with shareholders’ interests. We may vote against management proposals seeking","page_number":205,"box":{"x":68,"y":542,"width":803,"height":11}},{"id":"8da0982d-8279-476a-8ea4-fa54d8396464","block_type":"box","text":"capital-related authorities, or the election of the most senior independent director, if we have concerns about a","page_number":205,"box":{"x":69,"y":557,"width":790,"height":11}},{"id":"a27e8bbd-8eae-4904-85dc-c057cfad9f9d","block_type":"box","text":"company’s approach. We may also suppor t a shareholder proposal seeking conversion of shares with differentiated","page_number":205,"box":{"x":69,"y":571,"width":825,"height":12}},{"id":"4ac5f26c-9b34-463e-85ff-8cd5855c4527","block_type":"box","text":"voting rights to a one-share, one-vote standard.","page_number":205,"box":{"x":68,"y":587,"width":336,"height":11}},{"id":"c8a5b7cb-a9dc-42c2-a8f9-343cb7f59e17","block_type":"box","text":"Share issuance","page_number":205,"box":{"x":68,"y":609,"width":111,"height":9}},{"id":"5b2f9a31-cc6a-4cfb-8adf-04d733b85de8","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":205,"box":{"x":101,"y":627,"width":776,"height":12}},{"id":"60f07164-88fa-4233-b359-ca0d166d6141","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":205,"box":{"x":69,"y":642,"width":832,"height":12}},{"id":"ef995413-ce46-4e7f-896a-863cefbd8c8c","block_type":"box","text":"consider it good practice for companies to seek regular approval of these authorities to allow shareholders to take","page_number":205,"box":{"x":69,"y":657,"width":815,"height":11}},{"id":"7767d4f7-1355-405d-bc7f-1695c08cd4a6","block_type":"box","text":"into consideration how prior authorities were used, as well as the current circumstances of the company and the","page_number":205,"box":{"x":70,"y":672,"width":802,"height":11}},{"id":"c063bf22-1c97-404a-ae9d-5acfe5b5c6a0","block_type":"box","text":"market environment.","page_number":205,"box":{"x":69,"y":687,"width":145,"height":9}},{"id":"1631082f-c4b4-41ce-ad86-8f0a789c5b67","block_type":"box","text":"Share buybacks","page_number":205,"box":{"x":68,"y":709,"width":116,"height":11}},{"id":"f8615828-dd3e-45e3-8a14-1ece8251a0f1","block_type":"box","text":"We assess share buyback proposals in the context of the company’s disclosed capital management strategy and","page_number":205,"box":{"x":101,"y":728,"width":806,"height":11}},{"id":"7af3df00-a91a-44e9-9e9f-47a6b40c1b92","block_type":"box","text":"management’s determination of the appropriate balance between investment that suppor ts the long-term growth of","page_number":205,"box":{"x":69,"y":743,"width":823,"height":11}},{"id":"9ef82692-2d60-4784-a85f-335f71e8a291","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":205,"box":{"x":68,"y":758,"width":836,"height":11}},{"id":"2760dd99-1384-48a7-b631-b37b93f5ec72","block_type":"box","text":"company’s balance sheet and executive compensation arrangements and the price at which shares are repurchased","page_number":205,"box":{"x":69,"y":773,"width":830,"height":11}},{"id":"fe2d9c56-cacd-49ce-8019-a3b363bf8f02","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":205,"box":{"x":69,"y":787,"width":822,"height":12}},{"id":"ab649016-b2f0-41a6-8607-1b174ded16c7","block_type":"box","text":"allow shareholders to take into consideration how prior authorities were used, as well as the current circumstances","page_number":205,"box":{"x":69,"y":802,"width":823,"height":11}},{"id":"46fc2e39-3f6f-466b-ba79-ee1ca48a1b19","block_type":"box","text":"of the company and the market environment.","page_number":205,"box":{"x":69,"y":817,"width":319,"height":11}},{"id":"fdf81171-b28f-4fe8-9d12-b932c715168f","block_type":"box","text":"Dividends","page_number":205,"box":{"x":69,"y":840,"width":69,"height":8}},{"id":"405f438b-c023-401c-a16c-fe43ff2ee504","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":205,"box":{"x":101,"y":858,"width":799,"height":11}},{"id":"b873cfd0-2ff2-4680-8d90-8b5f7c8b8a06","block_type":"box","text":"where a proposed dividend appears out of line with the company’s financial position.","page_number":205,"box":{"x":68,"y":873,"width":604,"height":11}},{"id":"5a82b6ca-1645-4876-88f4-c4571948a053","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":205,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"35969630-14b9-44e9-b0f6-08d8bac71736","block_type":"box","text":"Global Engagement and Voting Guidelines | 9","page_number":205,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"0b4d6ec4-9dbb-4448-a240-5ff226f7717b","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":205,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5f0eaeec-a0c6-4a92-a05c-02d09d16264e","block_type":"box","text":"Differentiated voting rights","page_number":206,"box":{"x":69,"y":45,"width":196,"height":11}},{"id":"c430c86d-2b13-4b2a-9424-1e8a0aa7f333","block_type":"box","text":"We prefer companies to adopt a one-share, one-vote structure for share classes with the same economic","page_number":206,"box":{"x":101,"y":63,"width":750,"height":11}},{"id":"4b19fc03-5627-4163-80a7-35a602176cd2","block_type":"box","text":"exposure. Cer tain companies, par ticularly those new to public markets, could make the case to adopt a","page_number":206,"box":{"x":69,"y":78,"width":740,"height":11}},{"id":"43d673b6-1110-410f-92ee-de7f736b40f8","block_type":"box","text":"differentiated voting rights structure, or dual class stock. In those situations, we encourage companies to evaluate","page_number":206,"box":{"x":69,"y":93,"width":819,"height":11}},{"id":"2af9fbc5-b420-4515-898f-3d21c09f4525","block_type":"box","text":"and seek approval for their capital structure on a periodic basis.","page_number":206,"box":{"x":69,"y":108,"width":456,"height":11}},{"id":"911220f2-d207-4552-bad7-be9184df4cda","block_type":"box","text":"TRANSACTIONS AND SPECIAL SITUATIONS","page_number":206,"box":{"x":332,"y":138,"width":314,"height":9}},{"id":"1e4e81b6-92b6-4d49-832b-4bec53be3c39","block_type":"box","text":"We monitor developments in transactions and special situations closely and under take our own detailed","page_number":206,"box":{"x":101,"y":157,"width":743,"height":11}},{"id":"7f42383f-1e1d-4003-96e2-af9903592bc6","block_type":"box","text":"analyses of proposals.","page_number":206,"box":{"x":69,"y":172,"width":159,"height":11}},{"id":"c951c07a-97fa-4085-bd9d-de1336b8bb69","block_type":"box","text":"Mergers and acquisitions","page_number":206,"box":{"x":69,"y":194,"width":184,"height":11}},{"id":"9a723383-4fa3-42bd-9df7-4231f5681315","block_type":"box","text":"We evaluate proposed mergers or acquisitions by assessing the financial outcome for our clients as minority","page_number":206,"box":{"x":101,"y":213,"width":775,"height":11}},{"id":"dfdfff2d-3027-4467-ba62-adb67d3c063c","block_type":"box","text":"shareholders. Management should provide an assessment of the proposed transaction’s strategic and financial","page_number":206,"box":{"x":69,"y":228,"width":797,"height":11}},{"id":"a3bf71e2-4100-478e-a192-73f857bf1e5b","block_type":"box","text":"rationale, along with its execution and operational risks. We review each transaction independently based on these","page_number":206,"box":{"x":69,"y":243,"width":819,"height":11}},{"id":"8916ef15-2e03-4cf3-82c4-dfef817371c8","block_type":"box","text":"factors and the degree to which the transaction enhances shareholder value. The board might consider establishing","page_number":206,"box":{"x":68,"y":257,"width":827,"height":12}},{"id":"f5cdaa44-22d6-4eaf-8724-5143ade05ad0","block_type":"box","text":"an ad hoc transaction committee to under take an independent assessment of a significant merger or acquisition, in","page_number":206,"box":{"x":69,"y":272,"width":827,"height":11}},{"id":"46314045-4e9f-4368-ae43-50b0e6097fce","block_type":"box","text":"advance of making its recommendation to shareholders.","page_number":206,"box":{"x":69,"y":287,"width":400,"height":11}},{"id":"2ea697b5-bd67-4f07-9d54-07283507f517","block_type":"box","text":"We will vote against transactions that, in our assessment, do not advance our clients’ financial interests.","page_number":206,"box":{"x":101,"y":306,"width":749,"height":11}},{"id":"4ae62e8b-6a63-41b0-9e8b-acd05d3e24dd","block_type":"box","text":"Anti-takeover defenses","page_number":206,"box":{"x":68,"y":328,"width":167,"height":9}},{"id":"25675c88-a339-4ff6-affa-d4e527bf5892","block_type":"box","text":"In principle, we do not suppor t companies using anti-takeover defenses, also known as poison pills or","page_number":206,"box":{"x":102,"y":347,"width":727,"height":11}},{"id":"ef7491da-ff40-41b9-a2cd-d984df039b7d","block_type":"box","text":"shareholder rights plans, as they can entrench management and boards which have not delivered long-term","page_number":206,"box":{"x":69,"y":362,"width":766,"height":11}},{"id":"ebc408b2-84f1-4243-bd15-6ffda14fa761","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":206,"box":{"x":69,"y":376,"width":763,"height":12}},{"id":"4d6840a8-eb70-4f3c-866b-b5ccc35a5b6a","block_type":"box","text":"considered sub-optimal and enable management to seek an improved offer. Similarly, management could make the","page_number":206,"box":{"x":69,"y":391,"width":821,"height":12}},{"id":"7183077f-0514-4a27-9909-6b6fa9620dce","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":206,"box":{"x":69,"y":406,"width":799,"height":11}},{"id":"f02c63cd-65ff-43fc-b382-f951d0d9c05b","block_type":"box","text":"investors. Defense mechanisms introduced in these circumstances should be limited in term and threshold, and also","page_number":206,"box":{"x":70,"y":421,"width":836,"height":11}},{"id":"619a1c47-2864-450d-8c26-b3b03aa9447c","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":206,"box":{"x":69,"y":436,"width":835,"height":11}},{"id":"b466a7a8-4bb8-4ab5-a876-5e1d6b45f7de","block_type":"box","text":"a shareholder vote any mechanisms expected to be in place for more than 12 months.","page_number":206,"box":{"x":69,"y":451,"width":616,"height":11}},{"id":"30903c61-f106-4698-ac23-0a56fcf7379e","block_type":"box","text":"Shareholder activism","page_number":206,"box":{"x":68,"y":473,"width":153,"height":9}},{"id":"9b31a297-fb48-4cd3-a257-5e473d0ba1ec","block_type":"box","text":"When companies are the focus of an activism campaign, we may communicate with the activist to understand","page_number":206,"box":{"x":101,"y":492,"width":783,"height":11}},{"id":"280754a6-ae30-4c2c-b67b-34ff9752e78e","block_type":"box","text":"their analysis and objectives, once they have publicly disclosed their campaign. We may also engage with company","page_number":206,"box":{"x":68,"y":507,"width":819,"height":11}},{"id":"1781349c-4282-48d1-8320-198e87fb7657","block_type":"box","text":"management and possibly board members, especially those the activist may be seeking to replace. In our","page_number":206,"box":{"x":69,"y":522,"width":755,"height":11}},{"id":"5318dd39-10c8-4d37-a9f7-f6cde3761fdc","block_type":"box","text":"assessment, we evaluate various factors, including the concerns raised by the activist and the case for change; the","page_number":206,"box":{"x":69,"y":536,"width":824,"height":12}},{"id":"801b6559-e000-4241-b023-5720e58c7479","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":206,"box":{"x":69,"y":551,"width":839,"height":12}},{"id":"6630b5e3-edfb-4cd5-be46-2c3b9b6d24e6","block_type":"box","text":"each contested situation by assessing the potential financial outcome for our clients as minority shareholders.","page_number":206,"box":{"x":69,"y":566,"width":788,"height":11}},{"id":"232a37e7-de83-40f9-a359-765e277dbd00","block_type":"box","text":"We may suppor t board candidates nominated by a shareholder activist if BAIS, in its independent judgment, or","page_number":206,"box":{"x":101,"y":585,"width":789,"height":11}},{"id":"b03d7564-ede9-4157-9345-77e18d3c6034","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":206,"box":{"x":68,"y":600,"width":839,"height":11}},{"id":"56673d0d-1ccf-4285-9378-0503de168926","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":206,"box":{"x":70,"y":614,"width":786,"height":11}},{"id":"a88ad4b2-06ab-45bd-9f76-6d6d9af6ebc8","block_type":"box","text":"protecting shareholders’ interests.","page_number":206,"box":{"x":70,"y":630,"width":244,"height":11}},{"id":"0b6f7ba2-8a6b-4acf-83c9-3e77ecab7b20","block_type":"box","text":"Significant shareholders and related party transactions","page_number":206,"box":{"x":68,"y":652,"width":403,"height":11}},{"id":"080defdb-a2c1-4b68-9647-76b5c32da987","block_type":"box","text":"Boards of companies with affiliated shareholders or directors should give equitable consideration to the","page_number":206,"box":{"x":102,"y":670,"width":740,"height":12}},{"id":"729d101b-4b0d-4496-9b54-3f02603b7ea3","block_type":"box","text":"interests of all shareholders when evaluating related par ty transactions.","page_number":206,"box":{"x":70,"y":685,"width":511,"height":12}},{"id":"5c7683ca-5e75-47bf-81ad-dccf879dda07","block_type":"box","text":"We consider it good practice for transactions with related par ties, such as significant shareholders or companies","page_number":206,"box":{"x":101,"y":704,"width":805,"height":11}},{"id":"36a6e8cd-d949-40a7-8094-86db8b9f6c26","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":206,"box":{"x":69,"y":719,"width":832,"height":11}},{"id":"42e7cb8b-f628-4474-9310-ed678c84952b","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":206,"box":{"x":69,"y":734,"width":812,"height":11}},{"id":"5e31e7f7-41cf-42bc-b17b-7f4f19069a04","block_type":"box","text":"independent members of the board, and if voted on, only disinterested shareholders should vote.","page_number":206,"box":{"x":70,"y":748,"width":692,"height":12}},{"id":"b9866e81-4550-48db-8999-1813376b9a59","block_type":"box","text":"CORPORATE REPORTING, RISK MANAGEMENT AND AUDIT","page_number":206,"box":{"x":274,"y":779,"width":430,"height":10}},{"id":"b76888b9-33f2-4296-861e-c7fc08be816a","block_type":"box","text":"Investors depend on corporate repor ting, both regulatory and voluntary, to understand a company’s strategy, its","page_number":206,"box":{"x":102,"y":798,"width":796,"height":11}},{"id":"e5a9171e-50b5-4c01-88ff-0258d14bcd5b","block_type":"box","text":"implementation and financial per formance, as well as to assess the quality of management and operations and","page_number":206,"box":{"x":70,"y":812,"width":795,"height":12}},{"id":"e270f62f-962e-4670-859a-028a8b7dcb91","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":206,"box":{"x":70,"y":827,"width":779,"height":11}},{"id":"00692984-fb37-4b45-a314-82fb0333aac0","block_type":"box","text":"oversee corporate repor ting and the policies and procedures underpinning the internal audit function and external","page_number":206,"box":{"x":69,"y":842,"width":809,"height":11}},{"id":"0167878c-64ad-4645-ba2e-1e8875fb3a64","block_type":"box","text":"audit.","page_number":206,"box":{"x":69,"y":857,"width":38,"height":9}},{"id":"f50d1a5b-418b-4625-ac71-c16ac522b5ff","block_type":"box","text":"A company’s financial repor ting should provide decision-useful information for investors, and other stakeholders,","page_number":206,"box":{"x":101,"y":875,"width":803,"height":12}},{"id":"c92c3536-cc97-44bc-a443-59aaa3cc6a2d","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":206,"box":{"x":69,"y":890,"width":819,"height":11}},{"id":"284af349-0d3f-4fd3-b7fa-16d4a1c9022e","block_type":"box","text":"oppor tunities the company faces in realizing its long-term strategy. Accordingly, the assumptions made by","page_number":206,"box":{"x":69,"y":905,"width":752,"height":12}},{"id":"173e6758-36f6-44e2-9cc6-f54bb26ed1b8","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":206,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"ba0a9eb8-4843-4e52-ac90-23a5b8ee1336","block_type":"box","text":"Global Engagement and Voting Guidelines | 10","page_number":206,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"2d3f1593-8d97-4cc8-b0d2-b086f6905374","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":206,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"df9e0110-a6e2-4874-b031-30d1b4c99c89","block_type":"box","text":"management and reviewed by the auditor in preparing the financial statements should be reasonable and justified.","page_number":207,"box":{"x":69,"y":45,"width":817,"height":11}},{"id":"5539f99a-53b3-4313-9b44-f89424616297","block_type":"box","text":"Financial statements should be prepared in accordance with globally developed repor ting standards and any","page_number":207,"box":{"x":70,"y":60,"width":771,"height":11}},{"id":"103b32b2-805e-4004-93b0-a1345728db59","block_type":"box","text":"divergence from generally accepted accounting principles should be explained in detail and justified. Accounting","page_number":207,"box":{"x":69,"y":74,"width":796,"height":12}},{"id":"37ac7860-9ba3-409e-8e4f-7a5eb556f05a","block_type":"box","text":"restatements should be explained in detail and any remedial actions, and the implications of these, disclosed.","page_number":207,"box":{"x":69,"y":89,"width":788,"height":11}},{"id":"a554b8e5-981b-48f0-b158-015d03dd7786","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":207,"box":{"x":102,"y":108,"width":739,"height":11}},{"id":"23a8f159-7176-4453-af3f-19a4eb136d0c","block_type":"box","text":"independent oversight of the accounts, material financial and, where appropriate to the jurisdiction, non-financial","page_number":207,"box":{"x":70,"y":123,"width":801,"height":11}},{"id":"fa6d3d37-6acb-42b4-9e98-cd4cea32cb64","block_type":"box","text":"information, internal control frameworks and Enterprise Risk Management systems. In our view, effective audit","page_number":207,"box":{"x":70,"y":138,"width":787,"height":11}},{"id":"0dc04d96-3b24-48c1-a578-e70d314d39d6","block_type":"box","text":"committee oversight strengthens the quality and reliability of a company’s financial statements and provides an","page_number":207,"box":{"x":69,"y":152,"width":795,"height":12}},{"id":"ed187bc1-edd8-45e9-b724-97755365eb4d","block_type":"box","text":"impor tant level of reassurance to shareholders. Audit committees should have a procedure in place for assessing the","page_number":207,"box":{"x":70,"y":167,"width":838,"height":12}},{"id":"b1838dac-0939-4438-af1b-ceaeea118ef0","block_type":"box","text":"independence of the auditor and the quality of the external audit process annually.","page_number":207,"box":{"x":70,"y":182,"width":585,"height":11}},{"id":"080b6163-5e8b-4ed0-ac2a-41ae2c206819","block_type":"box","text":"Similarly, we encourage companies to disclose material sustainability-related factors that are integral to how a","page_number":207,"box":{"x":102,"y":201,"width":784,"height":11}},{"id":"dcf5c948-3ab3-461e-b49b-d45cebce81e6","block_type":"box","text":"company manages risks or generates revenue. BAIS finds it helpful to our understanding when companies provide","page_number":207,"box":{"x":69,"y":216,"width":812,"height":11}},{"id":"c74515b1-f4aa-41c4-a50c-522e5305d9be","block_type":"box","text":"robust, standardized disclosures on their material sustainability-related risks and oppor tunities. The International","page_number":207,"box":{"x":69,"y":231,"width":806,"height":11}},{"id":"589d42fe-d658-488d-8cb6-d8c2c9f0f263","block_type":"box","text":"Sustainability Standards Board (ISSB) is one entity working to meet these objectives through its repor ting standards,","page_number":207,"box":{"x":69,"y":246,"width":832,"height":11}},{"id":"4519a2a1-184e-49da-aebf-f185d0282c21","block_type":"box","text":"which may be helpful to companies in preparing such repor ts.","page_number":207,"box":{"x":68,"y":260,"width":440,"height":12}},{"id":"c97f469b-facc-490c-9484-581205ab45c5","block_type":"box","text":"9","page_number":207,"box":{"x":509,"y":261,"width":5,"height":4}},{"id":"677d6ddd-8acb-46d1-a95c-33bdde202715","block_type":"box","text":"However, we do not mandate any specific disclosure","page_number":207,"box":{"x":520,"y":260,"width":372,"height":11}},{"id":"a1aa78ef-ed61-4a8e-bed7-57e3e036681d","block_type":"box","text":"framework, and note that companies in cer tain jurisdictions are subject to mandatory repor ting requirements under","page_number":207,"box":{"x":68,"y":275,"width":824,"height":11}},{"id":"a80f1288-0a8b-429b-9845-4ed7b8642633","block_type":"box","text":"standards specified by policy makers.","page_number":207,"box":{"x":69,"y":290,"width":267,"height":11}},{"id":"0ae56b8f-ebf4-40e5-94c2-506a1e429dee","block_type":"box","text":"10","page_number":207,"box":{"x":338,"y":290,"width":9,"height":5}},{"id":"1bd70f74-c24b-4702-8ce6-05895d2d541d","block_type":"box","text":"Companies should establish robust risk management and internal control processes appropriate to the","page_number":207,"box":{"x":102,"y":309,"width":735,"height":11}},{"id":"96d3bec6-de2e-404c-acc2-531da5afc4ae","block_type":"box","text":"company’s business, risk tolerance, and regulatory environment. A credible whistleblowing system for employees,","page_number":207,"box":{"x":69,"y":323,"width":810,"height":12}},{"id":"f299693c-ed2a-4bea-8cd0-bf97bdcd1605","block_type":"box","text":"and potentially other stakeholders, can be a useful mechanism for ensuring that senior management and the board","page_number":207,"box":{"x":69,"y":338,"width":822,"height":12}},{"id":"1055fe8d-d5af-4057-a5e0-597bdd1e0ecb","block_type":"box","text":"are aware of potential misconduct or breaches in risk management and internal control processes.","page_number":207,"box":{"x":69,"y":353,"width":704,"height":12}},{"id":"d1daa0b1-d52f-4e20-8b41-49983e3b058d","block_type":"box","text":"A comprehensive audit conducted by an independent audit firm contributes to investor confidence in the quality","page_number":207,"box":{"x":101,"y":372,"width":794,"height":11}},{"id":"abcfcbc2-a25f-4dd7-b476-faded455a032","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":207,"box":{"x":69,"y":387,"width":836,"height":11}},{"id":"d6ee2939-e193-47d5-b942-7a805997b294","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":207,"box":{"x":68,"y":402,"width":838,"height":11}},{"id":"349fb981-a348-4b60-87e7-dbb9500c1985","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":207,"box":{"x":69,"y":416,"width":773,"height":11}},{"id":"d754d636-13fe-4290-8c43-c791bc9080e2","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":207,"box":{"x":69,"y":431,"width":804,"height":12}},{"id":"fb64e7c7-2de4-4882-a6db-29279233c888","block_type":"box","text":"audit. The audit committee should explain its position on auditor tenure and how it confirmed that the auditor","page_number":207,"box":{"x":69,"y":446,"width":780,"height":11}},{"id":"d577b395-4bcb-4f57-a8e4-70e844cdb03b","block_type":"box","text":"remained independent.","page_number":207,"box":{"x":69,"y":461,"width":163,"height":11}},{"id":"855c0128-5c60-4573-a605-51d1a2a89865","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":207,"box":{"x":101,"y":480,"width":783,"height":11}},{"id":"4c004851-d1ee-468a-8e71-ee9f88ae0e54","block_type":"box","text":"material misstatements in financial repor ts. In markets where relevant, we may vote against a proposal to approve","page_number":207,"box":{"x":69,"y":495,"width":819,"height":11}},{"id":"d907cb96-716c-41aa-b282-e6c86ae0397d","block_type":"box","text":"the financial statements or the discharge of the board when we are concerned about the quality of corporate","page_number":207,"box":{"x":68,"y":509,"width":774,"height":12}},{"id":"4384bb10-753f-42e2-ab43-30e0f9a69249","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":207,"box":{"x":69,"y":524,"width":816,"height":12}},{"id":"4e9c43e7-3005-41a2-9aa7-00d9040ce041","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":207,"box":{"x":69,"y":539,"width":779,"height":11}},{"id":"1f9d4374-1e30-4c46-a1c5-a31029cb0ea7","block_type":"box","text":"misstatements in financial repor ts and the board has not established reasonable remediation plans.","page_number":207,"box":{"x":69,"y":554,"width":718,"height":11}},{"id":"f4044e37-9338-474f-8c56-d8812e65a5f5","block_type":"box","text":"SHAREHOLDER RIGHTS AND PROTECTIONS","page_number":207,"box":{"x":329,"y":584,"width":319,"height":9}},{"id":"8aee8cf1-8b00-421e-b135-e7677f1e859c","block_type":"box","text":"General shareholder meetings","page_number":207,"box":{"x":69,"y":607,"width":217,"height":11}},{"id":"4ad33923-caf5-4de5-a6ff-1f2c1f64e54a","block_type":"box","text":"Companies normally have an annual general meeting of shareholders at which routine and non-routine items of","page_number":207,"box":{"x":102,"y":625,"width":792,"height":12}},{"id":"87f1e349-d684-49a1-8c65-84f6e5bf723d","block_type":"box","text":"business are discussed and voted on by shareholders in attendance or submitting proxy votes. Companies should","page_number":207,"box":{"x":69,"y":640,"width":812,"height":11}},{"id":"73453cce-ab08-47bd-8c24-1950727e2875","block_type":"box","text":"disclose materials relevant to the shareholder meeting sufficiently in advance so that shareholders can take them","page_number":207,"box":{"x":69,"y":655,"width":813,"height":11}},{"id":"684654cb-d49d-4281-87a1-be82eed88b5a","block_type":"box","text":"into consideration in their voting decisions. Many companies offer shareholders the option of par ticipating in the","page_number":207,"box":{"x":70,"y":670,"width":801,"height":11}},{"id":"8d39e68b-8780-4d57-845c-72714270ad82","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":207,"box":{"x":69,"y":685,"width":841,"height":11}},{"id":"39d24c38-5682-41c0-9a3f-d7ab3cc94edd","block_type":"box","text":"an in-person meeting.","page_number":207,"box":{"x":69,"y":700,"width":152,"height":11}},{"id":"7df1180c-98d9-48a6-b8a2-021c60f6bf79","block_type":"box","text":"We may vote against directors when materials related to the business of the shareholder meeting are not","page_number":207,"box":{"x":101,"y":718,"width":752,"height":12}},{"id":"5d86abd7-85ea-4e6b-ae42-43c850ecf9ab","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":207,"box":{"x":70,"y":733,"width":821,"height":11}},{"id":"b2bda920-e43b-425d-ad30-61787e5b024f","block_type":"box","text":"may vote against directors if the format of the shareholder meeting does not accommodate reasonable shareholder","page_number":207,"box":{"x":69,"y":748,"width":825,"height":11}},{"id":"5d9f05d8-a5b9-4566-b250-125cc3f0f070","block_type":"box","text":"par ticipation.","page_number":207,"box":{"x":70,"y":763,"width":91,"height":11}},{"id":"bf29294b-2728-44c4-a3db-001c7288e9bb","block_type":"box","text":"9","page_number":207,"box":{"x":69,"y":793,"width":4,"height":4}},{"id":"9e365d19-e1a8-42ae-b8b9-db9f0355928f","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Repor ting Standards","page_number":207,"box":{"x":93,"y":792,"width":744,"height":11}},{"id":"29e9a3b7-e8ed-44f0-97f4-8a5311418739","block_type":"box","text":"(IFRS) Foundation. Please refer to the IFRS website to learn more about the framework and standards S1","page_number":207,"box":{"x":94,"y":807,"width":748,"height":11}},{"id":"ac865b9a-8557-4ed8-9ae9-f6c8c0c872e3","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":207,"box":{"x":94,"y":822,"width":778,"height":12}},{"id":"74abf548-bc42-4ec3-97d3-db5e430cbf6a","block_type":"box","text":"Disclosures.”","page_number":207,"box":{"x":94,"y":838,"width":93,"height":8}},{"id":"b407efe6-89f4-494e-aba4-dfe2a705d8a2","block_type":"box","text":"10","page_number":207,"box":{"x":69,"y":856,"width":9,"height":4}},{"id":"701daabe-dfb0-430a-bd31-ef7070c20cc8","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":207,"box":{"x":93,"y":858,"width":810,"height":11}},{"id":"72949f1e-c7b8-4767-b9f9-06ab330d607b","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":207,"box":{"x":94,"y":866,"width":804,"height":12}},{"id":"d0007800-846f-4e1d-80ef-adcf00b54a36","block_type":"box","text":"p/ p//p/p\r\nrepor ting-and-auditing/company-repor ting/corporate-sustainability-repor ting_en.","page_number":207,"box":{"x":94,"y":876,"width":564,"height":11}},{"id":"0565a887-4322-4954-a486-2212ef1bae5b","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":207,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"f9472f0b-33e1-404f-9a5f-1bbacd4fa39e","block_type":"box","text":"Global Engagement and Voting Guidelines | 11","page_number":207,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"702a4390-bd9f-4fb2-ad56-979a84bca061","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":207,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c692774c-5ff1-45b9-97bb-fa3061e48c51","block_type":"box","text":"Bylaw amendments","page_number":208,"box":{"x":69,"y":45,"width":141,"height":11}},{"id":"d888c8be-3c29-4583-8bdd-90ee1dced940","block_type":"box","text":"We review bylaw amendments proposed by management on a case-by-case basis and will generally suppor t","page_number":208,"box":{"x":101,"y":64,"width":766,"height":11}},{"id":"2f968d3e-c0f2-4684-9e33-4ba40a25d99a","block_type":"box","text":"those that are aligned with the interests of minority shareholders. Any material changes to the bylaws should be","page_number":208,"box":{"x":68,"y":78,"width":800,"height":11}},{"id":"3cbdaf04-6e9a-4ba5-a337-d7c2a5f7ec24","block_type":"box","text":"explained in detail and put to a shareholder vote.","page_number":208,"box":{"x":69,"y":93,"width":349,"height":11}},{"id":"d01b2d2a-76a3-46a1-b079-0bff2454a7c5","block_type":"box","text":"We may vote against bylaw amendments that reduce shareholder rights and protections or introduce additional","page_number":208,"box":{"x":101,"y":112,"width":790,"height":11}},{"id":"8ee0a223-3444-4fff-afe9-69ec63871ff5","block_type":"box","text":"burdens. We may vote against directors if material changes are made to the bylaws without shareholder approval.","page_number":208,"box":{"x":69,"y":126,"width":810,"height":12}},{"id":"83933c26-5f1e-4597-8974-0c4743878506","block_type":"box","text":"If not provided for in the relevant corporate law, company bylaws should allow shareholders, individually or as a","page_number":208,"box":{"x":102,"y":145,"width":790,"height":11}},{"id":"b2e0b962-69bc-4d97-9c11-d3f891f35688","block_type":"box","text":"group, with a meaningful shareholding, the right to call a special meeting of shareholders. The shareholding required","page_number":208,"box":{"x":68,"y":160,"width":831,"height":11}},{"id":"01d6847d-c803-4e0a-b254-e8c4cd0b6133","block_type":"box","text":"to exercise this right should balance its utility with the cost to the company of holding special meetings.","page_number":208,"box":{"x":68,"y":175,"width":740,"height":11}},{"id":"52a09dc6-4b51-41ad-88fa-f6a468aeb8da","block_type":"box","text":"If not provided for in the relevant corporate law, company bylaws should allow shareholders, individually or as a","page_number":208,"box":{"x":102,"y":193,"width":790,"height":12}},{"id":"66580825-ac8c-4196-a351-dc6d022fd929","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":208,"box":{"x":68,"y":208,"width":834,"height":12}},{"id":"fd86d19f-afba-4cd8-9c47-7ab7a0aa4df3","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":208,"box":{"x":69,"y":223,"width":758,"height":12}},{"id":"69c12299-539c-438f-99b3-8983302c9e59","block_type":"box","text":"nomination process.","page_number":208,"box":{"x":69,"y":238,"width":143,"height":11}},{"id":"4dd801fd-f03c-4bb5-b9f8-f285f88294fc","block_type":"box","text":"Whilst we would not use either of these rights ourselves, we see them as impor tant accountability mechanisms.","page_number":208,"box":{"x":101,"y":257,"width":799,"height":11}},{"id":"3f781d23-53a8-48ae-be6d-8f7d08b8d08b","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":208,"box":{"x":68,"y":272,"width":810,"height":11}},{"id":"0d36d881-c90a-4846-9093-85643f541700","block_type":"box","text":"Change of domicile","page_number":208,"box":{"x":69,"y":294,"width":139,"height":11}},{"id":"297d5929-ebae-45b1-86f1-ae9c054b662b","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":208,"box":{"x":101,"y":313,"width":778,"height":11}},{"id":"f92bad48-ad2b-4ac7-9f20-1194834a4ecf","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":208,"box":{"x":69,"y":328,"width":766,"height":11}},{"id":"1e7b0f1d-0c51-439c-8120-8b40314c8abb","block_type":"box","text":"immaterial.","page_number":208,"box":{"x":70,"y":343,"width":77,"height":8}},{"id":"a320fdb1-81ca-4f4f-8ab2-296ceca7a65d","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":208,"box":{"x":101,"y":361,"width":777,"height":11}},{"id":"75e7241c-6c50-4c1e-9755-822ead87015b","block_type":"box","text":"with our clients’ financial interests.","page_number":208,"box":{"x":68,"y":376,"width":249,"height":9}},{"id":"e172fcb7-fd02-4920-987e-6cd970af76ae","block_type":"box","text":"Changes to a company’s purpose or the nature of its business","page_number":208,"box":{"x":69,"y":398,"width":452,"height":11}},{"id":"0d642db6-fba2-4e79-bad6-f66a07252f7c","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":208,"box":{"x":102,"y":417,"width":803,"height":11}},{"id":"75053014-e8da-46f0-a926-e52024d5f8ee","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":208,"box":{"x":70,"y":432,"width":829,"height":11}},{"id":"48cf4e76-9570-40b5-a61b-899a7a56ca41","block_type":"box","text":"on the suitability of a company for their investment strategy or por tfolio.","page_number":208,"box":{"x":69,"y":447,"width":511,"height":11}},{"id":"22058af0-3fde-4dab-9c24-2312a3a6fd86","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":208,"box":{"x":101,"y":465,"width":792,"height":12}},{"id":"e0edec00-9e9f-49e9-8150-448db534b9ef","block_type":"box","text":"the board has not provided a credible argument for change.","page_number":208,"box":{"x":68,"y":480,"width":424,"height":12}},{"id":"98f295ef-64fd-4673-87d0-2a33f9895577","block_type":"box","text":"SHAREHOLDER PROPOSALS","page_number":208,"box":{"x":385,"y":510,"width":207,"height":9}},{"id":"5eca043c-e64e-4cf0-b907-e3c655f488fe","block_type":"box","text":"Shareholders in many markets, who meet cer tain eligibility criteria, have the right to submit proposals to the","page_number":208,"box":{"x":102,"y":529,"width":772,"height":11}},{"id":"7b383db2-4676-4bf6-b574-45fac866db90","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":208,"box":{"x":68,"y":544,"width":811,"height":11}},{"id":"86ae44ce-1135-447d-a9da-b00577b3348d","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":208,"box":{"x":69,"y":559,"width":824,"height":11}},{"id":"84686692-ef33-42a2-8027-3cd814cd31d0","block_type":"box","text":"relevant to a company’s business.","page_number":208,"box":{"x":69,"y":574,"width":243,"height":11}},{"id":"b3e3006d-927c-4f8c-b319-e5290ab17657","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":208,"box":{"x":101,"y":592,"width":730,"height":11}},{"id":"b5ba60dd-0328-4bbb-8c77-943705e4cb64","block_type":"box","text":"company’s business and its current approach, whether the actions sought are consistent with shareholders’","page_number":208,"box":{"x":69,"y":607,"width":772,"height":11}},{"id":"ba2caa98-df64-4336-8f0b-b5a0f950fdd2","block_type":"box","text":"interests, and what impact the proposal being acted upon might have on financial per formance.","page_number":208,"box":{"x":70,"y":622,"width":681,"height":11}},{"id":"6c499e29-95c6-4ad3-8eee-e6d299d602cc","block_type":"box","text":"Our general approach where we have concerns about a company’s governance, disclosures or per formance is to","page_number":208,"box":{"x":102,"y":641,"width":801,"height":11}},{"id":"9364af2e-8ba6-4e39-a01e-1aebee5e3043","block_type":"box","text":"engage to understand the apparent difference in perspective. If we are concerned a company is not acting in","page_number":208,"box":{"x":69,"y":656,"width":774,"height":11}},{"id":"8fa6dad3-a799-4e60-849d-3f629712d0d3","block_type":"box","text":"shareholders’ financial interests, we may vote against the election of directors. We may suppor t a relevant","page_number":208,"box":{"x":69,"y":670,"width":761,"height":12}},{"id":"513b0131-8b09-4b42-b2f0-3e8e2a2b5954","block_type":"box","text":"shareholder proposal if doing so is aligned with our clients’ financial interests. We generally do not suppor t","page_number":208,"box":{"x":69,"y":685,"width":764,"height":12}},{"id":"859e9d64-c15b-479e-ae9f-aa7ee0846442","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":208,"box":{"x":69,"y":700,"width":785,"height":11}},{"id":"4e5e0606-8f5c-4a02-9709-cc294c3a2c23","block_type":"box","text":"operations, or are unrelated to how a company manages risk or generates financial returns.","page_number":208,"box":{"x":69,"y":715,"width":653,"height":11}},{"id":"2647abae-a686-44cc-b642-4ed3a77f2f15","block_type":"box","text":"BlackRock is subject to rules, regulations, agency guidance and contractual agreements that place restrictions","page_number":208,"box":{"x":102,"y":734,"width":788,"height":11}},{"id":"de13536d-6710-44a8-b8ef-d851d1d0a7a8","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":208,"box":{"x":69,"y":748,"width":822,"height":12}},{"id":"b03b6692-9fad-4ac4-a01f-8126466ceb14","block_type":"box","text":"ability to submit shareholder proposals. We do not submit shareholder proposals but can vote, on behalf of clients","page_number":208,"box":{"x":69,"y":763,"width":817,"height":12}},{"id":"8ed28c37-39bb-4284-a0f5-9772df2d1546","block_type":"box","text":"who authorize us to do so, on proposals put for th by others.","page_number":208,"box":{"x":68,"y":778,"width":428,"height":11}},{"id":"2193f250-c2f9-47c6-b74c-d1d63fee15a8","block_type":"box","text":"CORPORATE POLITICAL ACTIVITIES","page_number":208,"box":{"x":359,"y":808,"width":260,"height":9}},{"id":"411d26c2-6ec0-4ae3-8543-d69b37caf2db","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":208,"box":{"x":101,"y":827,"width":795,"height":11}},{"id":"36aee504-3679-4703-9c11-4017c60e9817","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":208,"box":{"x":70,"y":842,"width":824,"height":11}},{"id":"fdb8b5a8-7936-4edd-b32b-d65063ff7d46","block_type":"box","text":"BAIS may seek to understand how it is addressing the material risk identified. We seek to understand how","page_number":208,"box":{"x":70,"y":857,"width":757,"height":11}},{"id":"e702f440-ee23-4592-bbd1-a344e77b48ce","block_type":"box","text":"companies engage in corporate political activities and ensure that their par ticipation is consistent with their public","page_number":208,"box":{"x":69,"y":872,"width":814,"height":11}},{"id":"1b942c5a-9347-427a-aafd-29db09986f67","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":208,"box":{"x":69,"y":887,"width":780,"height":11}},{"id":"29ccfbe4-1480-4554-9de3-6137d2bbe9b5","block_type":"box","text":"approach taken by management on corporate political activities as there can be reputational risks arising from","page_number":208,"box":{"x":69,"y":901,"width":786,"height":12}},{"id":"f396486d-1cb3-4390-9517-682bdfa2ce4f","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":208,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"058b9345-a75a-49eb-8ed7-89a84492fd22","block_type":"box","text":"Global Engagement and Voting Guidelines | 12","page_number":208,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"65adf9f6-55fc-478b-9b7d-66f80adf3c7a","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":208,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d0d2525d-e3b7-4349-8f08-b369474d3d0a","block_type":"box","text":"inconsistencies between a company’s policy engagement and stated policy positions. Companies should, as a","page_number":209,"box":{"x":70,"y":45,"width":786,"height":11}},{"id":"e3d8f5dd-05cb-4c8e-8566-254e1f904ae3","block_type":"box","text":"minimum, meet all regulatory disclosure requirements on political activities. We may engage a company where we","page_number":209,"box":{"x":69,"y":60,"width":812,"height":11}},{"id":"1bb44018-9158-4fa5-8ea4-6b993493e3fe","block_type":"box","text":"would like to better understand its approach to policy engagement, where relevant.","page_number":209,"box":{"x":68,"y":75,"width":590,"height":11}},{"id":"a892c9f7-c143-4aff-85b7-900d51422728","block_type":"box","text":"To mitigate the risk of inconsistencies, companies may wish to assess the alignment between their policy","page_number":209,"box":{"x":101,"y":93,"width":753,"height":11}},{"id":"775c60e0-aa1b-404b-b605-4c4413cdf337","block_type":"box","text":"priorities and the policy positions of the trade associations of which they are active members and any engagements","page_number":209,"box":{"x":70,"y":108,"width":823,"height":11}},{"id":"a7077f82-90b5-4592-b185-b4f7276ffb17","block_type":"box","text":"under taken by trade associations on behalf of members.","page_number":209,"box":{"x":69,"y":123,"width":404,"height":11}},{"id":"e9bf3ce1-d822-4ca5-b9ea-d59b96f5ff77","block_type":"box","text":"We may suppor t a relevant shareholder proposal, or vote against directors, where a company’s disclosures are","page_number":209,"box":{"x":101,"y":142,"width":793,"height":11}},{"id":"dfc9227a-3ce9-471d-856a-2943167a4dbd","block_type":"box","text":"insufficient to address the material risk it has identified.","page_number":209,"box":{"x":70,"y":156,"width":400,"height":9}},{"id":"0fb45689-0fea-412e-8264-35b4aa876c73","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":209,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"41d2bae6-4fcb-4d11-bb2e-7b0fbfb24edb","block_type":"box","text":"Global Engagement and Voting Guidelines | 13","page_number":209,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"4a3895a9-0093-4012-bbcd-54de748291e9","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":209,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0d470f90-7ab4-44ca-97ac-24fa07913fdb","block_type":"box","text":"MATERIAL SUSTAINABILITY- RELATED RISKS AND OPPORTUNITIES","page_number":210,"box":{"x":245,"y":45,"width":489,"height":9}},{"id":"97713e9a-5944-4eaa-b10c-43fdd91b3011","block_type":"box","text":"We seek to understand how companies manage the material risks and oppor tunities inherent in their business","page_number":210,"box":{"x":101,"y":64,"width":790,"height":11}},{"id":"f3c85599-e176-4bac-8e04-5b07fbd16bb9","block_type":"box","text":"operations. In our experience, sustainability-related factors","page_number":210,"box":{"x":69,"y":78,"width":418,"height":12}},{"id":"99317b5e-bf42-4b2a-9c04-f53811061a40","block_type":"box","text":"11","page_number":210,"box":{"x":488,"y":79,"width":9,"height":4}},{"id":"69a6a86d-ceeb-4e06-b4b8-f2c129f96df8","block_type":"box","text":"that are relevant to a company’s business or material to","page_number":210,"box":{"x":502,"y":79,"width":402,"height":11}},{"id":"b3a15ba9-83fa-4b45-9312-71ae310fab1a","block_type":"box","text":"its financial per formance, are generally operational considerations embedded into day-to-day management systems.","page_number":210,"box":{"x":70,"y":93,"width":824,"height":12}},{"id":"d5fd4e7e-e422-4bbe-bdba-e8e360e4988c","block_type":"box","text":"Cer tain sustainability issues may also inform long-term strategic planning, for example, investing in product","page_number":210,"box":{"x":69,"y":108,"width":766,"height":11}},{"id":"4089db39-3260-4a70-bbc8-c6ad083322e7","block_type":"box","text":"innovation in anticipation of changing consumer demand or adapting supply chains in response to changing","page_number":210,"box":{"x":70,"y":123,"width":764,"height":11}},{"id":"6cbb0eae-b461-4654-874c-c5b1e07fe9be","block_type":"box","text":"regulatory requirements.","page_number":210,"box":{"x":69,"y":138,"width":174,"height":11}},{"id":"254eaea1-6e8f-411a-9802-7cea1d739465","block_type":"box","text":"We recognize that the specific sustainability-related factors that may be financially material or business relevant","page_number":210,"box":{"x":101,"y":156,"width":798,"height":12}},{"id":"cc77ae60-a396-456b-b40e-de4e258742c3","block_type":"box","text":"will vary by company business model, sector, key markets, and time horizon, amongst other considerations. From","page_number":210,"box":{"x":68,"y":172,"width":809,"height":11}},{"id":"846598d0-bb48-4f0a-a3f4-de0210278c57","block_type":"box","text":"company disclosures and our engagement, we aim to understand how management is identifying, assessing and","page_number":210,"box":{"x":69,"y":186,"width":803,"height":12}},{"id":"e03f499c-f1b3-4875-b376-4e8d15cc300c","block_type":"box","text":"integrating material sustainability-related risks and oppor tunities into their business decision-making and practices.","page_number":210,"box":{"x":70,"y":201,"width":820,"height":11}},{"id":"da1173b0-c4be-4107-b2db-7b0a1df00dbc","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":210,"box":{"x":70,"y":216,"width":808,"height":11}},{"id":"a7ac3608-ff83-48a3-8774-e03f5db4b22c","block_type":"box","text":"likely risk-adjusted returns of an investment.","page_number":210,"box":{"x":70,"y":231,"width":313,"height":11}},{"id":"91ce222d-64fc-4cce-ab69-f8a80a733603","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":210,"box":{"x":101,"y":249,"width":764,"height":12}},{"id":"722cc8aa-2530-434b-ae02-b80ae6688281","block_type":"box","text":"company is managing or disclosing its approach to material sustainability-related risks that may impact financial","page_number":210,"box":{"x":69,"y":264,"width":798,"height":12}},{"id":"8fc9be12-7f6b-40c9-92f0-fca54b027308","block_type":"box","text":"returns.","page_number":210,"box":{"x":69,"y":280,"width":54,"height":8}},{"id":"afdd08e8-d751-4338-8ef2-86967836a4fd","block_type":"box","text":"KEY STAKEHOLDERS","page_number":210,"box":{"x":414,"y":309,"width":151,"height":9}},{"id":"f7cf8347-3afa-4125-b336-f3b41cafb7b0","block_type":"box","text":"In our view, companies should understand and take into consideration the interests of the various par ties on","page_number":210,"box":{"x":102,"y":328,"width":774,"height":11}},{"id":"cbd0b3ea-9b12-48ba-a943-e1769fd2866a","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":210,"box":{"x":68,"y":343,"width":826,"height":11}},{"id":"19a9669b-d939-4e90-8ba0-c8154a353c08","block_type":"box","text":"what is material to their business and long-term financial per formance. For many companies, key stakeholders","page_number":210,"box":{"x":68,"y":358,"width":790,"height":11}},{"id":"341279a7-4e30-4f49-909e-ec2d0fe75e43","block_type":"box","text":"include employees, business par tners (such as suppliers and distributors), clients and consumers, regulators, and","page_number":210,"box":{"x":70,"y":373,"width":817,"height":11}},{"id":"e6a373f0-a348-4b02-b36a-352ed9b7b351","block_type":"box","text":"the communities in which they operate. Companies that appropriately balance the interests of investors and other","page_number":210,"box":{"x":68,"y":387,"width":813,"height":12}},{"id":"b7692d27-f15f-499a-803f-ed901559a2c2","block_type":"box","text":"stakeholders are, in our experience, more likely to be financially resilient over time.","page_number":210,"box":{"x":69,"y":402,"width":592,"height":12}},{"id":"5cce028e-1505-40a6-841c-c061e7705714","block_type":"box","text":"CLIMATE AND DECARBONIZATION INVESTMENT OBJECTIVES","page_number":210,"box":{"x":265,"y":432,"width":448,"height":9}},{"id":"ce05c1d6-d9ee-4951-a2fe-7f37dd44ed4e","block_type":"box","text":"Cer tain active BlackRock funds have climate and decarbonization objectives in addition to financial objectives.","page_number":210,"box":{"x":102,"y":451,"width":784,"height":11}},{"id":"ff0994a5-dddc-4e95-b08e-2f87ac707957","block_type":"box","text":"Consistent with the objectives of those investment strategies, our stewardship activity in relation to the holdings in","page_number":210,"box":{"x":69,"y":466,"width":818,"height":11}},{"id":"82999f38-67c6-4a97-872d-0bcd9489d059","block_type":"box","text":"those funds differs in some respects from BAIS’ benchmark guidelines, which are described above. Specifically, for","page_number":210,"box":{"x":68,"y":481,"width":823,"height":11}},{"id":"4a6a725f-dead-4c1f-aeb9-3f2bd13b9539","block_type":"box","text":"those funds’ holdings, we look to investee companies to demonstrate that they are aligned with a decarbonization","page_number":210,"box":{"x":68,"y":496,"width":814,"height":11}},{"id":"64a4b0b2-e189-4e51-863e-afd94a905c27","block_type":"box","text":"pathway that means their business model would be viable in a low-carbon economy,","page_number":210,"box":{"x":70,"y":511,"width":594,"height":11}},{"id":"b898c7f7-bb4b-465c-887f-2a3f5b7e8f58","block_type":"box","text":"i.e.","page_number":210,"box":{"x":672,"y":511,"width":20,"height":9}},{"id":"9615a19d-3719-4745-81df-ddf35df23617","block_type":"box","text":", one in which global","page_number":210,"box":{"x":694,"y":511,"width":144,"height":11}},{"id":"4d815aa2-7c30-4a36-9147-5bf2dc6f95a3","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":210,"box":{"x":68,"y":526,"width":821,"height":11}},{"id":"6c009524-bcb9-414c-893a-7b8efce11a21","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":210,"box":{"x":69,"y":540,"width":839,"height":12}},{"id":"455a975d-e6c6-46c3-b7ad-849dd0cd7bf1","block_type":"box","text":"accounts, these guidelines are only implemented upon explicit selection and approval by the applicable fund board or","page_number":210,"box":{"x":69,"y":555,"width":837,"height":12}},{"id":"b5cb3e06-dc8f-427e-81b5-725927d09539","block_type":"box","text":"client.","page_number":210,"box":{"x":69,"y":570,"width":41,"height":9}},{"id":"101753b7-d933-47c5-b85b-47fa21744a4d","block_type":"box","text":"These decarbonization stewardship guidelines focus on companies which produce goods and services that","page_number":210,"box":{"x":101,"y":589,"width":761,"height":11}},{"id":"9989a180-f15a-46c3-b1ce-6c83679a5ccb","block_type":"box","text":"contribute to real world decarbonization or have a carbon intensive business model and face outsized impacts from","page_number":210,"box":{"x":69,"y":604,"width":821,"height":11}},{"id":"3adb5353-1518-4d3d-a9a7-147ebb0206b1","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":210,"box":{"x":68,"y":619,"width":817,"height":11}},{"id":"18ef2975-0859-42f7-8c66-436d51821ba5","block_type":"box","text":"companies should provide disclosures that set out their governance, strategy, risk management processes and","page_number":210,"box":{"x":69,"y":634,"width":792,"height":11}},{"id":"85b66c56-c0c1-4460-adff-ea0b4325c1f5","block_type":"box","text":"metrics and targets relevant to decarbonization. It is helpful to investors’ understanding when these disclosures","page_number":210,"box":{"x":69,"y":648,"width":799,"height":12}},{"id":"7ee2c4a2-ea4e-4d0d-90a9-eb3e6b29e9fe","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":210,"box":{"x":70,"y":663,"width":812,"height":11}},{"id":"2b07ca54-cba8-4762-9f5c-fa477a572083","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":210,"box":{"x":68,"y":678,"width":831,"height":11}},{"id":"cba9c8cd-40b3-4a79-b6b7-3fff4b9b410e","block_type":"box","text":"1 and 2 emissions.","page_number":210,"box":{"x":70,"y":693,"width":135,"height":9}},{"id":"2c096ea2-f76a-45eb-b72f-2d6fb72b0934","block_type":"box","text":"Under these climate- and decarbonization-specific guidelines, BAIS may recommend a vote against directors or","page_number":210,"box":{"x":102,"y":711,"width":788,"height":12}},{"id":"9c81ab14-a901-4046-9633-262d66113e2f","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":210,"box":{"x":69,"y":726,"width":800,"height":12}},{"id":"5df27446-6a71-4bad-aab4-afab33306d70","block_type":"box","text":"disclosing material climate-related risks, consistent with the parameters set out in these climate-and decarbonization","page_number":210,"box":{"x":69,"y":741,"width":839,"height":12}},{"id":"4ab8972b-ee34-453f-b895-916a202eb706","block_type":"box","text":"specific guidelines. We may recommend suppor ting shareholder proposals seeking information relevant to a","page_number":210,"box":{"x":69,"y":756,"width":771,"height":11}},{"id":"b25f758e-2bae-484b-bd53-1cb978b21f76","block_type":"box","text":"11","page_number":210,"box":{"x":69,"y":786,"width":9,"height":4}},{"id":"fe052111-3ab7-44f0-a549-2e0aaf55d4f0","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":210,"box":{"x":84,"y":785,"width":822,"height":11}},{"id":"58957729-0c36-41a5-a8f2-4c95fac41b47","block_type":"box","text":"a company’s business model that have an environmental or social dependency or impact. Examples of environmental","page_number":210,"box":{"x":69,"y":800,"width":835,"height":12}},{"id":"b2d54dde-9afd-4a77-82ff-49d018ebd369","block_type":"box","text":"issues include, but are not limited to, water use, land use, waste management, and climate risk. Examples of social","page_number":210,"box":{"x":70,"y":816,"width":827,"height":11}},{"id":"fc9fd9d0-4209-4322-bc40-e40439e06dd9","block_type":"box","text":"issues include, but are not limited to, human capital management, impacts on the communities in which a company","page_number":210,"box":{"x":70,"y":831,"width":826,"height":11}},{"id":"fbf28095-4b49-46ff-959b-fd54be6f9079","block_type":"box","text":"operates, customer loyalty, and relationships with regulators. It is our view that well-managed companies will","page_number":210,"box":{"x":69,"y":846,"width":773,"height":11}},{"id":"166efe96-5ead-473a-8eef-12f8a9d30036","block_type":"box","text":"effectively evaluate and manage material sustainability-related risks and oppor tunities relevant to their businesses.","page_number":210,"box":{"x":69,"y":861,"width":823,"height":11}},{"id":"2ed714a0-f781-49d9-ab3f-d1b196d7fd27","block_type":"box","text":"Governance is the core means by which boards can oversee the creation of durable financial value over time.","page_number":210,"box":{"x":69,"y":876,"width":777,"height":11}},{"id":"39892720-4eaf-4785-be00-b935a664607d","block_type":"box","text":"Appropriate risk oversight of business-relevant and material sustainability-related considerations is a component of a","page_number":210,"box":{"x":68,"y":891,"width":833,"height":11}},{"id":"14032d23-2814-4944-b4e5-e2fcaf2c7677","block_type":"box","text":"sound governance framework.","page_number":210,"box":{"x":69,"y":906,"width":212,"height":12}},{"id":"4b283eaa-93b0-4f07-aeb6-bb71e71dd8bc","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":210,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"c92985b7-e211-4d01-a7c5-e856dbc031cf","block_type":"box","text":"Global Engagement and Voting Guidelines | 14","page_number":210,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"8b4967de-b8b1-4e99-892d-84a8d8224b95","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":210,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b56ffaa3-074f-44e1-8380-cacd596ee44c","block_type":"box","text":"company’s stated low-carbon transition strategy or targets that the company does not currently provide and that","page_number":211,"box":{"x":69,"y":45,"width":798,"height":11}},{"id":"64acce29-3bbd-4a70-b086-290acc6d2678","block_type":"box","text":"would be helpful to investment decision-making. We would not recommend suppor t for shareholder proposals that","page_number":211,"box":{"x":68,"y":59,"width":814,"height":12}},{"id":"a2107c1a-6ee9-4b46-bdd4-e2db142486e5","block_type":"box","text":"seek to constrain board or management decision-making or direct specific business or strategic decisions. As under","page_number":211,"box":{"x":69,"y":74,"width":828,"height":12}},{"id":"a50c8710-1eda-4121-9b1c-912ae2d38b88","block_type":"box","text":"the BAIS benchmark approach, the active por tfolio managers are ultimately responsible for voting consistent with","page_number":211,"box":{"x":68,"y":89,"width":807,"height":12}},{"id":"134cd346-ae00-413c-bc8e-f98129f7f3ea","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":211,"box":{"x":68,"y":104,"width":832,"height":11}},{"id":"91e9dbf0-1832-4752-a2bb-e1d441a4ac98","block_type":"box","text":"climate risk and the energy transition is under taken in line with BAIS’ benchmark guidelines.","page_number":211,"box":{"x":69,"y":119,"width":658,"height":11}},{"id":"ccaa3035-024e-44da-bd21-d926bd402572","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":211,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"071ba9c2-ef2c-42b8-9c49-d57bed167b22","block_type":"box","text":"Global Engagement and Voting Guidelines | 15","page_number":211,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"843d45cb-d0c4-4f72-90af-5034d9e89011","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":211,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f08f5c95-85d5-457f-be3a-353bf84deffd","block_type":"box","text":"APPENDIX 1: HOW WE FULFILL AND OVERSEE OUR INVESTMENT STEWARDSHIP RESPONSIBILITIES FOR NON","page_number":212,"box":{"x":83,"y":45,"width":812,"height":9}},{"id":"2f76a5f3-6da1-4e77-9359-d65c00c4df85","block_type":"box","text":"INDEX EQUITY INVESTMENT STRATEGIES","page_number":212,"box":{"x":338,"y":60,"width":302,"height":10}},{"id":"6681bd69-603e-43d2-9581-f9df0871e2cd","block_type":"box","text":"Oversight","page_number":212,"box":{"x":69,"y":83,"width":68,"height":11}},{"id":"41f2b79a-6723-41e7-a2be-5de60233ccde","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":212,"box":{"x":101,"y":101,"width":793,"height":11}},{"id":"3d71021e-0d9a-469f-b1f5-8ddf7b39aaa2","block_type":"box","text":"accordance with the BlackRock Active Investment Stewardship Global Engagement and Voting Guidelines (the","page_number":212,"box":{"x":69,"y":116,"width":778,"height":11}},{"id":"ef137d43-8135-4c1e-82f6-9d0115ebcb77","block_type":"box","text":"“Guidelines”), which require the application of professional judgment and consideration of each company’s unique","page_number":212,"box":{"x":70,"y":131,"width":814,"height":11}},{"id":"1d7dbb45-12e7-4440-bb67-67e23a095881","block_type":"box","text":"circumstances, as well as input from active investors. BAIS is independent from BlackRock Investment Stewardship","page_number":212,"box":{"x":69,"y":146,"width":825,"height":11}},{"id":"ade6c8d4-9e35-4f19-85d6-a85105fc1733","block_type":"box","text":"in our engagement and voting activities, repor ting lines, and oversight.","page_number":212,"box":{"x":70,"y":161,"width":500,"height":11}},{"id":"9e482b79-b7df-46ff-93df-0434e7ff6af2","block_type":"box","text":"The Stewardship Leaders Group, comprised of senior active investors and other relevant stakeholders in","page_number":212,"box":{"x":101,"y":179,"width":744,"height":11}},{"id":"1a0be383-0683-4392-b435-31e648096b20","block_type":"box","text":"BlackRock’s legal, public policy, sustainability and communications teams, helps shape the firm’s approach to","page_number":212,"box":{"x":70,"y":194,"width":786,"height":11}},{"id":"e8581f24-907a-40d1-b4f8-25ad764995b2","block_type":"box","text":"investment stewardship on non-index equity investment strategies. The Group may advise on and review amendments","page_number":212,"box":{"x":70,"y":209,"width":839,"height":11}},{"id":"ba2d210a-dc49-4aa6-ad99-2b4fc3cfc3a4","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":212,"box":{"x":68,"y":224,"width":822,"height":11}},{"id":"9ef806a4-b9da-41fc-b73b-a4bced06f656","block_type":"box","text":"relevant active equity investors.","page_number":212,"box":{"x":69,"y":239,"width":223,"height":11}},{"id":"ca5bb97b-7168-4257-842c-b8c24efa4c03","block_type":"box","text":"BAIS carries out engagement with companies in collaboration with active investment colleagues, executes proxy","page_number":212,"box":{"x":102,"y":257,"width":797,"height":12}},{"id":"1e34a215-9eec-48ff-96d7-39839a8024dd","block_type":"box","text":"votes, and conducts vote operations (including maintaining records of votes cast) in a manner consistent with the","page_number":212,"box":{"x":68,"y":272,"width":810,"height":11}},{"id":"e59ae968-628c-4655-aa67-30017b99cc98","block_type":"box","text":"Guidelines. BAIS also conducts research on corporate governance issues and par ticipates in industry discussions to","page_number":212,"box":{"x":69,"y":287,"width":832,"height":11}},{"id":"28a4df17-3802-4682-9ec5-e060d9678d75","block_type":"box","text":"contribute to and keep abreast of impor tant developments in the corporate governance field. BAIS may use third","page_number":212,"box":{"x":69,"y":302,"width":801,"height":11}},{"id":"2e86912d-673c-421d-bb42-92e23d4419d6","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":212,"box":{"x":70,"y":317,"width":836,"height":11}},{"id":"83b547e5-190f-4e18-8a91-5efdfa4adbae","block_type":"box","text":"third-par ty vote services providers” below).","page_number":212,"box":{"x":68,"y":332,"width":305,"height":11}},{"id":"b02c663f-82dd-4df8-9474-76b914521ca3","block_type":"box","text":"Voting guidelines and vote execution","page_number":212,"box":{"x":68,"y":354,"width":269,"height":11}},{"id":"eee95363-a922-4258-9e40-aef41a8ec14b","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":212,"box":{"x":102,"y":373,"width":790,"height":11}},{"id":"794e87a9-af43-48d3-8c91-9a96c50cc7f0","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":212,"box":{"x":69,"y":387,"width":838,"height":12}},{"id":"ae074d5e-fcc8-4f6e-802e-9fb443723425","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":212,"box":{"x":69,"y":402,"width":831,"height":12}},{"id":"2577c10e-78c6-4e78-aa7c-06d8b91d7847","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":212,"box":{"x":68,"y":417,"width":809,"height":12}},{"id":"317e4b40-eca3-49d1-ad53-d3598129a8f7","block_type":"box","text":"judgment, and without regard to the relationship of the issuer (or any shareholder proponent or dissident","page_number":212,"box":{"x":67,"y":432,"width":749,"height":11}},{"id":"04b64ca0-d9ef-4bd9-ac55-8cb237144659","block_type":"box","text":"shareholder) to the Fund, the Fund’s affiliates (if any), BlackRock or BlackRock’s affiliates, or BlackRock employees","page_number":212,"box":{"x":69,"y":447,"width":825,"height":11}},{"id":"f5ebf95b-912c-4f32-a158-8f65e3f59a50","block_type":"box","text":"(see “Conflicts management policies and procedures,” below).","page_number":212,"box":{"x":69,"y":462,"width":445,"height":11}},{"id":"70bc7a9f-092d-4c03-a983-5078c0c6b38f","block_type":"box","text":"When exercising voting rights, BAIS will normally vote on specific proxy issues in accordance with the Guidelines,","page_number":212,"box":{"x":101,"y":480,"width":803,"height":12}},{"id":"6b4ff453-c1d8-4000-9f6f-6b9849789b36","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":212,"box":{"x":69,"y":495,"width":806,"height":12}},{"id":"eba9e10c-7021-43ad-b564-9555f39ed9c8","block_type":"box","text":"aligned with the investment objective and financial interests of clients invested in the funds they manage.","page_number":212,"box":{"x":69,"y":510,"width":752,"height":11}},{"id":"7397899f-4d0b-47ad-af9e-1d2d0651271e","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":212,"box":{"x":101,"y":529,"width":782,"height":11}},{"id":"e8f7715f-e0f0-402f-818e-b7b0f68bf2b3","block_type":"box","text":"context of the individual circumstances of each company and the specific issue under review. As such, the Guidelines","page_number":212,"box":{"x":69,"y":544,"width":837,"height":11}},{"id":"f98b19bc-3157-4847-9842-00950c5a9606","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":212,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"03585b6e-1a82-4086-9b2b-f1b8a0ac5c36","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":212,"box":{"x":68,"y":574,"width":838,"height":11}},{"id":"628e7288-f42a-4371-a771-f75e5422d2ef","block_type":"box","text":"Guidelines are reviewed annually and updated as necessary to reflect changes in market practices, developments in","page_number":212,"box":{"x":69,"y":588,"width":829,"height":12}},{"id":"a62aff8d-6c15-441a-bac0-0f3227fad5fe","block_type":"box","text":"corporate governance and feedback from companies and clients. In this way, BAIS aims to maintain policies that","page_number":212,"box":{"x":69,"y":603,"width":802,"height":11}},{"id":"f2a5e57f-ee52-4277-8f1e-40929293472e","block_type":"box","text":"explain our approach to governance practices most aligned with clients’ long-term financial interests.","page_number":212,"box":{"x":69,"y":618,"width":718,"height":11}},{"id":"c5768e89-57d3-4ca8-8c6f-6f8036fcd6c2","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":212,"box":{"x":102,"y":637,"width":792,"height":11}},{"id":"397f6490-64e8-4ad7-ae25-7d4a5d562e81","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":212,"box":{"x":68,"y":652,"width":791,"height":11}},{"id":"aa0c1c45-cac2-4216-87d4-fe46fd111d55","block_type":"box","text":"shareholder meetings; ii) restrictions on a foreigner’s ability to exercise votes; iii) requirements to vote proxies in","page_number":212,"box":{"x":69,"y":666,"width":805,"height":12}},{"id":"a234497c-2bdb-4715-97bb-2110022bd4ca","block_type":"box","text":"person; iv) “share-blocking” (requirements that investors who exercise their voting rights surrender the right to","page_number":212,"box":{"x":70,"y":682,"width":784,"height":11}},{"id":"f057c8cf-f162-4b99-9af3-d04e0c35c27b","block_type":"box","text":"dispose of their holdings from the point at which votes are submitted until after the shareholder meeting has","page_number":212,"box":{"x":69,"y":696,"width":775,"height":11}},{"id":"b2983f7d-a083-4625-ad1e-7cb3c09adf68","block_type":"box","text":"occurred); v) potential difficulties in translating the proxy; vi) regulatory constraints; and vii) requirements to provide","page_number":212,"box":{"x":69,"y":711,"width":824,"height":11}},{"id":"9b3cdc94-c63a-4251-a257-7811198b0c80","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":212,"box":{"x":70,"y":726,"width":806,"height":11}},{"id":"159096f5-1599-4b75-9802-09bb8c300910","block_type":"box","text":"exercise of voting rights such as share-blocking or overly burdensome administrative requirements.","page_number":212,"box":{"x":69,"y":741,"width":704,"height":11}},{"id":"238160d9-9908-4bb8-bf79-21420f6c8b84","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":212,"box":{"x":102,"y":759,"width":796,"height":12}},{"id":"39212f0a-1321-4391-8d8d-c39c4ed7b524","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":212,"box":{"x":68,"y":774,"width":799,"height":12}},{"id":"5c7bc0b7-a5d6-4482-b9a4-052215ee7886","block_type":"box","text":"(including but not limited to oppor tunity costs associated with share-blocking constraints) associated with exercising","page_number":212,"box":{"x":69,"y":789,"width":829,"height":11}},{"id":"ac61e8d8-ea63-4610-bbdb-876fbc73ac90","block_type":"box","text":"a vote are expected to outweigh the benefit the client would derive by voting on the proposal.","page_number":212,"box":{"x":69,"y":804,"width":661,"height":11}},{"id":"776ca10a-9346-44be-9f2f-ebea0889d178","block_type":"box","text":"Voting Choice","page_number":212,"box":{"x":68,"y":826,"width":101,"height":12}},{"id":"9404e37a-8bcf-4e11-a033-cad06ffecebf","block_type":"box","text":"BlackRock offers Voting Choice, a program that provides eligible clients with more oppor tunities to par ticipate in","page_number":212,"box":{"x":102,"y":845,"width":800,"height":11}},{"id":"e68ea781-13a4-4f61-82e8-66bb34025d19","block_type":"box","text":"the proxy voting process where legally and operationally viable.","page_number":212,"box":{"x":68,"y":860,"width":447,"height":11}},{"id":"c57cd935-f46b-4dcf-8e83-05ca0e234ad5","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":212,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"1853e30e-b8f0-41c5-95df-796fb3400a30","block_type":"box","text":"Global Engagement and Voting Guidelines | 16","page_number":212,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"be934ef1-397d-49d2-9bbe-10616b3ced51","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":212,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"193d6cc5-b6d1-463d-aff4-96c4351316ed","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":213,"box":{"x":101,"y":45,"width":786,"height":11}},{"id":"1f89d448-354c-4915-b1b2-c55339b8a632","block_type":"box","text":"UK, and Canada that use systematic active equity (SAE) and multi-asset strategies. In addition, institutional clients in","page_number":213,"box":{"x":70,"y":60,"width":834,"height":11}},{"id":"56520fd3-8db2-4971-a5da-8e7e89bbf0d1","block_type":"box","text":"separately managed accounts (SMAs) are eligible for BlackRock Voting Choice regardless of their investment","page_number":213,"box":{"x":69,"y":74,"width":774,"height":12}},{"id":"bb21ed6d-ff45-4c44-8096-f878fd5aca7a","block_type":"box","text":"strategies.","page_number":213,"box":{"x":69,"y":89,"width":74,"height":12}},{"id":"270d6482-9c94-4a62-ac30-e670eea875b2","block_type":"box","text":"12","page_number":213,"box":{"x":145,"y":90,"width":9,"height":4}},{"id":"f980b80b-43fb-4ae3-a4b3-a9b24bd871f5","block_type":"box","text":"As a result, the shares attributed to BlackRock in company share registers may be voted differently depending","page_number":213,"box":{"x":101,"y":108,"width":788,"height":11}},{"id":"c360d580-9166-4ec8-919f-78f60f12c7d0","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":213,"box":{"x":69,"y":123,"width":834,"height":10}},{"id":"d76a9b5a-f0f7-4330-9d94-b3518b6ee952","block_type":"box","text":"with a third-par ty policy, or have elected to vote shares in accordance with their own policy. 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All other trademarks are those of their respective owners.","page_number":215,"box":{"x":70,"y":913,"width":624,"height":11}},{"id":"02f34199-94c3-400c-adb4-254e3a2d7f8a","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":215,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"da52b58c-d855-4d6a-83b5-1acf38f17f22","block_type":"box","text":"Global Engagement and Voting Guidelines | 19","page_number":215,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"519fab55-6b4f-42de-a92c-7cdb7a51524a","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":215,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e2dafcb4-0391-4d79-9260-1dc0d9effd30","block_type":"box","text":"Index Equity Fund Proxy Voting Policy","page_number":216,"box":{"x":352,"y":75,"width":275,"height":11}},{"id":"1ea9f3f8-c3da-4ad4-8879-3901a3be13f6","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":216,"box":{"x":134,"y":316,"width":702,"height":11}},{"id":"dd546a5e-3f3a-4220-87d5-dfdab1e3e228","block_type":"box","text":"BlackRock Fund Advisors or BlackRock Advisors, LLC (“BlackRock”), have the responsibility for the oversight of","page_number":216,"box":{"x":102,"y":331,"width":789,"height":11}},{"id":"4bce3b4b-c084-4b5f-9464-a86612613d3d","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":216,"box":{"x":101,"y":346,"width":801,"height":11}},{"id":"4ccfdb11-434c-4f3e-abbe-e9f5c3b7fc4f","block_type":"box","text":"the Funds and their shareholders to delegate the responsibility to vote proxies to BlackRock, subject to the","page_number":216,"box":{"x":101,"y":361,"width":763,"height":11}},{"id":"ae7a5bd3-a0e0-46f6-b776-0d92002be153","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":216,"box":{"x":102,"y":375,"width":775,"height":12}},{"id":"1a1b723f-2e44-4587-8bd2-b1dbffdf09f2","block_type":"box","text":"assets, all as contemplated by the Funds’ respective investment management agreements.","page_number":216,"box":{"x":102,"y":391,"width":651,"height":11}},{"id":"76550ca7-0ed4-4a9f-9680-38ddd6bc3e7a","block_type":"box","text":"BlackRock has adopted the BlackRock Investment Stewardship Global Benchmark Policy (as from time to","page_number":216,"box":{"x":135,"y":409,"width":748,"height":11}},{"id":"23d01e85-eea8-46d4-9495-f7a117dcbfa3","block_type":"box","text":"time amended, the “Guidelines”) governing proxy voting by index equity Funds managed by BlackRock, except for","page_number":216,"box":{"x":101,"y":424,"width":804,"height":11}},{"id":"44c3c1a2-1d55-42ff-a6c4-f8ce803fb371","block_type":"box","text":"the iShares Core S&P 500 ETF. 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In mitigating conflicts,","page_number":216,"box":{"x":101,"y":643,"width":800,"height":12}},{"id":"392a629f-a7a1-48c5-82bf-5da3c5440f40","block_type":"box","text":"BIS will adhere to the Guidelines.","page_number":216,"box":{"x":102,"y":658,"width":235,"height":9}},{"id":"ca70f6a7-95a2-49ea-8a59-6cefab33b58f","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":216,"box":{"x":135,"y":677,"width":769,"height":11}},{"id":"64fe0a4c-2d56-4dd8-bfb7-c9fd4fe16a80","block_type":"box","text":"recommendations as a fur ther safeguard to avoid potential conflicts of interest, to satisfy regulatory compliance","page_number":216,"box":{"x":102,"y":692,"width":800,"height":11}},{"id":"023e9cea-689b-464b-a213-082ee5e84431","block_type":"box","text":"requirements, or as may be otherwise required by applicable law.","page_number":216,"box":{"x":102,"y":707,"width":463,"height":11}},{"id":"c5f9a1d9-75a7-474a-88c2-679243eb2b48","block_type":"box","text":"With respect to the relationship between securities lending and proxy voting, shares on loan cannot be voted","page_number":216,"box":{"x":134,"y":725,"width":774,"height":11}},{"id":"ad58151f-e291-4d34-8b88-00b8465ba24b","block_type":"box","text":"and BlackRock may determine to recall them for voting, as guided by BlackRock’s fiduciary responsibility to act","page_number":216,"box":{"x":102,"y":740,"width":791,"height":11}},{"id":"50adacf7-580a-4d1a-9bfe-58259c5ecfb6","block_type":"box","text":"in clients’ financial interests. The Guidelines set for th BlackRock’s approach to recalling securities on loan in","page_number":216,"box":{"x":102,"y":755,"width":778,"height":11}},{"id":"09786a83-40f6-45f5-9dcd-0103423acbad","block_type":"box","text":"connection with proxy voting.","page_number":216,"box":{"x":101,"y":770,"width":203,"height":11}},{"id":"25ff592b-6769-43a8-a3af-28f3eaacf835","block_type":"box","text":"Reports to the Board","page_number":216,"box":{"x":102,"y":789,"width":153,"height":10}},{"id":"ab265659-ca6c-4c57-8ffc-c783b611afb7","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":216,"box":{"x":135,"y":807,"width":755,"height":11}},{"id":"d6c94a2b-72f1-4b3a-8ec4-45a1e5c2c88d","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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Through stewardship, we assess how companies are creating long-term financial","page_number":220,"box":{"x":70,"y":639,"width":831,"height":12}},{"id":"59664f96-eb69-41da-9c7c-3d95466949e8","block_type":"box","text":"value to serve our clients, many of whom are saving for long-term goals, such as retirement. 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As a fiduciary, BlackRock is legally required to make proxy voting determinations in a manner that is","page_number":221,"box":{"x":68,"y":60,"width":805,"height":11}},{"id":"325e7f08-620b-465b-b1c4-2329ad6cc50d","block_type":"box","text":"consistent with the investment objectives of clients who have delegated voting authority to us. BIS’ Benchmark","page_number":221,"box":{"x":69,"y":75,"width":790,"height":11}},{"id":"abb56299-0a97-4630-9b6e-1f46890ceb5b","block_type":"box","text":"Policies, and the vote decisions made consistent with those policies, reflect our reasonable and independent","page_number":221,"box":{"x":69,"y":90,"width":779,"height":11}},{"id":"0de085e0-793e-4fea-a102-db9d5436045b","block_type":"box","text":"judgment of what is in the long-term financial interests of clients. 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These are topics that shareholders may have","page_number":221,"box":{"x":69,"y":475,"width":822,"height":12}},{"id":"e5fd3545-b9c0-42cb-9ae1-220d06d84b21","block_type":"box","text":"the ability to vote on at shareholder meetings. These areas include:","page_number":221,"box":{"x":68,"y":491,"width":482,"height":11}},{"id":"a9ad6911-0b88-4eb6-98c4-a219c260d68d","block_type":"box","text":"•","page_number":221,"box":{"x":69,"y":514,"width":6,"height":4}},{"id":"051cb14f-cef7-4cce-b884-5c73e31f8a9e","block_type":"box","text":"Boards and directors","page_number":221,"box":{"x":102,"y":511,"width":147,"height":9}},{"id":"1fed9d4d-5beb-4835-96c6-0966f46a098d","block_type":"box","text":"•","page_number":221,"box":{"x":69,"y":534,"width":6,"height":4}},{"id":"8b747b48-4805-4d2c-8c22-c32acbbb99e2","block_type":"box","text":"Auditors and audit-related issues","page_number":221,"box":{"x":101,"y":531,"width":234,"height":9}},{"id":"8a31dd5e-a865-401b-bdd9-53b8d2343479","block_type":"box","text":"•","page_number":221,"box":{"x":69,"y":554,"width":6,"height":5}},{"id":"ad2d19ed-b272-4fc2-b29f-a5c88b3528a0","block_type":"box","text":"Capital structure, mergers, acquisitions, asset sales, and other special situations","page_number":221,"box":{"x":102,"y":551,"width":583,"height":11}},{"id":"c8335444-14b1-4c33-9fe2-883b062592a8","block_type":"box","text":"•","page_number":221,"box":{"x":69,"y":574,"width":6,"height":5}},{"id":"28ec9653-6e3d-47c7-bcb4-a860aebd1014","block_type":"box","text":"Executive compensation","page_number":221,"box":{"x":102,"y":571,"width":170,"height":11}},{"id":"603db110-3f36-47ae-b27e-dc407a59fd9e","block_type":"box","text":"•","page_number":221,"box":{"x":69,"y":594,"width":6,"height":5}},{"id":"952c2efe-30b8-42a1-bde6-a73965986248","block_type":"box","text":"Shareholder protections and other significant corporate governance matters","page_number":221,"box":{"x":102,"y":591,"width":539,"height":12}},{"id":"153a0fbc-bb7d-4b72-b599-97b0ac2512cd","block_type":"box","text":"•","page_number":221,"box":{"x":69,"y":614,"width":6,"height":5}},{"id":"a7195845-a9ab-482e-9965-2f3a17ce0528","block_type":"box","text":"Shareholder proposals","page_number":221,"box":{"x":102,"y":612,"width":160,"height":11}},{"id":"fc4001c6-a0bf-40a2-a039-e2d06a4d38d0","block_type":"box","text":"The BIS Benchmark Policies are not prescriptive but rather are applied on a pragmatic basis, taking into","page_number":221,"box":{"x":101,"y":634,"width":740,"height":12}},{"id":"9a37ef30-8f1f-4823-8bf8-76e3d7e35b4b","block_type":"box","text":"consideration a number of company-specific factors, including the sector, market, and business environment within","page_number":221,"box":{"x":69,"y":649,"width":819,"height":12}},{"id":"e05b9053-90ef-4b26-8345-03c9bad15b04","block_type":"box","text":"which companies operate.","page_number":221,"box":{"x":68,"y":665,"width":186,"height":10}},{"id":"4a4590ab-fb33-44b7-adb4-d40adaa54569","block_type":"box","text":"At the regional level, it is our view that companies should observe the accepted corporate governance standards","page_number":221,"box":{"x":101,"y":687,"width":803,"height":11}},{"id":"273d0524-bc42-4653-89b1-1ba6103d4097","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":221,"box":{"x":70,"y":702,"width":785,"height":11}},{"id":"68593aa5-ad6a-4e89-a4a8-7e93bb46e9f2","block_type":"box","text":"suppor ts durable, long-term financial value creation. Our regional voting guidelines explain how the BIS Global","page_number":221,"box":{"x":69,"y":717,"width":781,"height":12}},{"id":"78bf6ea0-08f3-44bd-8e3d-f9dbf76a3edf","block_type":"box","text":"Principles inform our voting decisions in relation to common ballot items for shareholder meetings in those markets.","page_number":221,"box":{"x":69,"y":732,"width":829,"height":12}},{"id":"36c22a83-35c8-43ca-a46e-95e1f355fd13","block_type":"box","text":"4","page_number":221,"box":{"x":899,"y":733,"width":5,"height":4}},{"id":"00220b2e-7084-4003-b610-cc8296d04130","block_type":"box","text":"3","page_number":221,"box":{"x":69,"y":762,"width":4,"height":5}},{"id":"52840a72-47b1-4ef8-9056-4653f59273c5","block_type":"box","text":"Examples include: Government of Canada, “Canada Business Corporations Act,” amended 2024; European Union,","page_number":221,"box":{"x":79,"y":762,"width":816,"height":11}},{"id":"12d07575-36a7-4cd4-9e75-002225daf334","block_type":"box","text":"“Shareholder Rights Directive II,” 2017; and the China Securities Regulatory Commission, “Code of Corporate","page_number":221,"box":{"x":70,"y":777,"width":784,"height":11}},{"id":"57f8f7bb-80df-46b1-a9ec-503557967888","block_type":"box","text":"Governance for Listed Companies in China,” 2001. Websites accessed in December 2025.","page_number":221,"box":{"x":69,"y":792,"width":650,"height":11}},{"id":"8820c3b5-1610-4f80-9623-bf1f08dedf34","block_type":"box","text":"4","page_number":221,"box":{"x":69,"y":810,"width":4,"height":4}},{"id":"fab49957-e9c9-4195-a75a-ca4a2b6477e0","block_type":"box","text":"Our regional voting guidelines reflect these different market standards and norms. Depending on the market,","page_number":221,"box":{"x":79,"y":810,"width":776,"height":11}},{"id":"d5c7ce62-7775-4173-8576-91e5e17207ac","block_type":"box","text":"generally accepted practice is informed by corporate law, market regulation, best practices, and industry initiatives,","page_number":221,"box":{"x":68,"y":825,"width":821,"height":11}},{"id":"d42b0d9b-f5e1-4c58-8e52-855cf3daf54f","block_type":"box","text":"amongst other factors. BIS carries out engagement with companies, executes proxy votes, and conducts vote","page_number":221,"box":{"x":69,"y":840,"width":780,"height":11}},{"id":"b03f6050-0945-4fd8-8986-a095bf1a6ad7","block_type":"box","text":"operations (including maintaining records of votes cast) in a manner consistent with the relevant regional voting","page_number":221,"box":{"x":69,"y":855,"width":796,"height":11}},{"id":"0f3bf45f-26cc-4a9c-8220-30bd026d62a9","block_type":"box","text":"guidelines.","page_number":221,"box":{"x":68,"y":870,"width":76,"height":11}},{"id":"c4f40536-b916-4aca-b5f1-940a2be2b40b","block_type":"box","text":"BlackRock Investment Stewardship","page_number":221,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"0ce9f025-0645-4249-b442-c16b2fc351f4","block_type":"box","text":"Global Principles | 4","page_number":221,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"e70e5bcc-8548-42c4-b484-e1b799b66322","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":221,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5d0c8fc3-52f7-49f8-b1c3-e3733fcbbf93","block_type":"box","text":"BOARDS AND DIRECTORS","page_number":222,"box":{"x":394,"y":45,"width":190,"height":9}},{"id":"d990d8a7-3022-4c5e-9d57-b85dd28e2058","block_type":"box","text":"Oversight role of the board","page_number":222,"box":{"x":69,"y":75,"width":194,"height":11}},{"id":"e503f48d-a06e-4759-a108-d94b6ed213a4","block_type":"box","text":"Companies whose boards are comprised of appropriately qualified, engaged directors with professional","page_number":222,"box":{"x":102,"y":98,"width":734,"height":11}},{"id":"af798060-17d7-4b26-ac93-06b4e617066b","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":222,"box":{"x":69,"y":113,"width":806,"height":11}},{"id":"ba990ad1-3fe0-458b-83fc-f70ed7b82421","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":222,"box":{"x":69,"y":128,"width":822,"height":11}},{"id":"5c7cdfd6-550b-4335-82f4-d6b40e2b88b3","block_type":"box","text":"advantage, providing valuable oversight and contributing to the most impor tant management decisions that suppor t","page_number":222,"box":{"x":69,"y":143,"width":825,"height":11}},{"id":"602609cd-6fb7-4dfc-8c40-9237a5750237","block_type":"box","text":"long-term financial per formance.","page_number":222,"box":{"x":70,"y":158,"width":229,"height":11}},{"id":"e8a6c04a-da9a-4b19-be58-f5f066a53a08","block_type":"box","text":"For this reason, our investment stewardship effor ts focus on the effectiveness of the board of directors. We","page_number":222,"box":{"x":102,"y":181,"width":771,"height":11}},{"id":"9e2a79fd-1b96-4590-8631-29c633bc80f2","block_type":"box","text":"engage, as necessary, with members of the board’s nominating and/or governance committee to assess whether","page_number":222,"box":{"x":69,"y":196,"width":811,"height":11}},{"id":"463a1210-b856-42a5-8b18-44f5eb12ef00","block_type":"box","text":"governance practices and board composition are effective given a company’s business model, sector, market, and","page_number":222,"box":{"x":68,"y":211,"width":817,"height":11}},{"id":"adba7d6a-c998-496d-b158-22b6b85856ff","block_type":"box","text":"the business environment in which a company is operating.","page_number":222,"box":{"x":68,"y":226,"width":422,"height":11}},{"id":"c31281c9-3afd-44d4-850b-89a2b8e28f77","block_type":"box","text":"We consider it good practice when the board establishes and maintains a framework of robust and effective","page_number":222,"box":{"x":101,"y":249,"width":770,"height":11}},{"id":"cf561087-7924-4c3f-bc08-6c3a9069be52","block_type":"box","text":"governance mechanisms that suppor ts its oversight of the company’s strategy and operations, consistent with the","page_number":222,"box":{"x":68,"y":264,"width":817,"height":11}},{"id":"bd750ab8-a958-4562-8d56-b4572f3cfa8c","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":222,"box":{"x":70,"y":279,"width":799,"height":11}},{"id":"63ddb9b6-4895-4444-9629-867af0ba8ab3","block_type":"box","text":"committees of the board and how directors engage with and oversee management, as well as disclosure of material","page_number":222,"box":{"x":69,"y":294,"width":827,"height":11}},{"id":"6c061dad-b4bb-49c7-86b2-074f17ace2d3","block_type":"box","text":"risks that may affect a company’s long-term strategy and how management is effectively identifying, managing, and","page_number":222,"box":{"x":69,"y":309,"width":822,"height":11}},{"id":"a25223fe-42eb-46ac-9254-329c26e917dc","block_type":"box","text":"mitigating such risks.","page_number":222,"box":{"x":69,"y":325,"width":150,"height":11}},{"id":"528348da-63e9-438f-911a-ff039721c9c0","block_type":"box","text":"Understanding management’s long-term strategy and the milestones against which investors should assess its","page_number":222,"box":{"x":102,"y":347,"width":791,"height":11}},{"id":"ab19e5cf-9cae-4bc0-ba2d-4b48b5530d72","block_type":"box","text":"implementation is central to our approach. If any strategic targets are significantly missed or materially restated, we","page_number":222,"box":{"x":70,"y":362,"width":826,"height":11}},{"id":"f0273e6a-879a-4849-b74f-06feb337b635","block_type":"box","text":"find it helpful when company disclosures provide a detailed explanation of the changes and an indication of the","page_number":222,"box":{"x":68,"y":377,"width":793,"height":12}},{"id":"e3020c3a-972e-4d2f-a760-4ba3db079014","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":222,"box":{"x":69,"y":392,"width":755,"height":12}},{"id":"c4458f96-d1f1-4ad6-99e0-ab4cfe839b28","block_type":"box","text":"mechanisms in overseeing the management of business risks and oppor tunities and the fulfillment of the company’s","page_number":222,"box":{"x":69,"y":407,"width":835,"height":12}},{"id":"0e250c41-cb55-452f-8207-a0067c05b82c","block_type":"box","text":"strategy.","page_number":222,"box":{"x":69,"y":423,"width":58,"height":11}},{"id":"4f5091f7-a8b1-436c-9af4-b2cd54b295b9","block_type":"box","text":"Where a company has not adequately disclosed or demonstrated that its board has fulfilled these corporate","page_number":222,"box":{"x":101,"y":445,"width":769,"height":11}},{"id":"317f9843-b5ec-4786-942e-17547bc5abbf","block_type":"box","text":"governance and risk oversight responsibilities, we may consider not suppor ting the election of directors who, in our","page_number":222,"box":{"x":68,"y":460,"width":823,"height":12}},{"id":"013ee90d-1353-4401-8e7a-866935886ee7","block_type":"box","text":"assessment, have par ticular responsibility for the issues.","page_number":222,"box":{"x":69,"y":475,"width":409,"height":12}},{"id":"ab968113-9acb-4a7b-a0b5-b3b875d96b9b","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":222,"box":{"x":101,"y":498,"width":791,"height":11}},{"id":"8f8ea448-b4f7-4040-9653-b3716d375b93","block_type":"box","text":"the board’s effectiveness as a group include the relevance of individual directors’ qualifications and skillsets, as well","page_number":222,"box":{"x":68,"y":513,"width":836,"height":12}},{"id":"1e20f272-4476-4263-91e0-f64a4460a34f","block_type":"box","text":"as directors’ capacity and other time commitments, and how these factors may contribute to the company’s financial","page_number":222,"box":{"x":69,"y":528,"width":833,"height":12}},{"id":"48acf6b1-1592-4e5f-94ef-9ec192db755f","block_type":"box","text":"per formance. We look to boards to establish formal and transparent processes for nominating directors that reflect","page_number":222,"box":{"x":70,"y":543,"width":823,"height":12}},{"id":"e88b529b-8a02-412e-aa2f-d5ee6bfdb6b0","block_type":"box","text":"the company’s long-term strategy and business model.","page_number":222,"box":{"x":68,"y":559,"width":390,"height":11}},{"id":"51a7486b-5990-4a3e-8e26-ba244bed1a20","block_type":"box","text":"In the section titled “Board quality and effectiveness” below, we provide more detail about our approach to board","page_number":222,"box":{"x":102,"y":581,"width":807,"height":11}},{"id":"0ee073c0-8a71-4817-84c6-3cdbe4968621","block_type":"box","text":"composition and how it underpins board effectiveness and long-term financial value creation.","page_number":222,"box":{"x":69,"y":596,"width":662,"height":12}},{"id":"488dff3e-597a-4c8a-b1b6-e8f51b3c4470","block_type":"box","text":"Regular accountability through director elections","page_number":222,"box":{"x":69,"y":627,"width":358,"height":11}},{"id":"94a1bca3-b61d-4d44-b322-5a8711ccdad7","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":222,"box":{"x":101,"y":649,"width":750,"height":12}},{"id":"cdafdfb1-3370-4e64-9346-d118b7e88f38","block_type":"box","text":"concern about, the per formance of the board in overseeing and advising management. To ensure accountability for","page_number":222,"box":{"x":69,"y":664,"width":819,"height":12}},{"id":"bf45eec3-7a4a-431c-8528-d911fd1107f1","block_type":"box","text":"their decisions on behalf of shareholders, directors should stand for election on a regular basis, ideally annually.","page_number":222,"box":{"x":68,"y":680,"width":802,"height":11}},{"id":"f7df542b-99d8-448e-ad37-d4b50cbf6749","block_type":"box","text":"5","page_number":222,"box":{"x":872,"y":680,"width":4,"height":4}},{"id":"f51906c3-c59b-433e-9919-e2216e35bb28","block_type":"box","text":"Annual director elections allow shareholders to reaffirm their suppor t for, or concerns about, board members’","page_number":222,"box":{"x":68,"y":695,"width":782,"height":11}},{"id":"3e4b3007-b231-4e13-86c1-c8f4ab1ab83a","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":222,"box":{"x":69,"y":710,"width":832,"height":11}},{"id":"e1de6fcd-db65-4020-a62c-fc23d9b504a6","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":222,"box":{"x":68,"y":725,"width":832,"height":11}},{"id":"63e9eb5a-2bd3-450a-b585-a351bb409578","block_type":"box","text":"with a propor tion of directors being put forward for election at each shareholder meeting.","page_number":222,"box":{"x":68,"y":740,"width":636,"height":11}},{"id":"8eb80283-ebe4-4a94-ba63-eee0c1da9f27","block_type":"box","text":"BOARD QUALITY AND EFFECTIVENESS","page_number":222,"box":{"x":348,"y":770,"width":282,"height":11}},{"id":"55e27de0-f8b1-44ca-ac29-1c36ff02567d","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":222,"box":{"x":102,"y":793,"width":805,"height":11}},{"id":"e8ba9004-5814-448e-82d9-b9b073b944af","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":222,"box":{"x":69,"y":808,"width":831,"height":11}},{"id":"c9e1ef00-509d-44f8-b832-389af67c5307","block_type":"box","text":"be brought onto the board periodically to refresh the group’s thinking, while suppor ting both continuity and","page_number":222,"box":{"x":69,"y":823,"width":758,"height":12}},{"id":"3c9c37cc-a7b2-48c1-b53a-b77cc437d3e3","block_type":"box","text":"5","page_number":222,"box":{"x":69,"y":853,"width":4,"height":4}},{"id":"5a8e7858-075b-4c6d-8bd8-7e5f241b91d1","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":222,"box":{"x":79,"y":852,"width":795,"height":12}},{"id":"23afe7cb-24f3-46b4-a256-4b763ab4bb71","block_type":"box","text":"market regulation or voluntary best practice.","page_number":222,"box":{"x":69,"y":868,"width":314,"height":11}},{"id":"6470428a-07c8-417a-810a-46eca690f224","block_type":"box","text":"BlackRock Investment Stewardship","page_number":222,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"64401358-dce4-4eea-a3fb-00b7ff888701","block_type":"box","text":"Global Principles | 5","page_number":222,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"ce5b8992-f207-4d83-ad7c-25727ae173ff","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":222,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"61a9ef65-6d1e-4f67-b04f-b9e8f56e6b14","block_type":"box","text":"appropriate succession planning. We consider the average overall tenure of the board and seek a balance between","page_number":223,"box":{"x":69,"y":45,"width":819,"height":11}},{"id":"47230dac-9dfd-4a4d-a05a-ecb0100e2e6a","block_type":"box","text":"the knowledge and experience of longer-serving directors and the fresh perspectives of directors who joined more","page_number":223,"box":{"x":68,"y":60,"width":809,"height":11}},{"id":"924741b7-5657-4f7f-9e86-dc63dbabca85","block_type":"box","text":"recently.","page_number":223,"box":{"x":69,"y":75,"width":57,"height":11}},{"id":"eca21bfa-a201-48b7-b90d-8ca8f555c20e","block_type":"box","text":"We appreciate when companies regularly review and assess how directors nominated for election contribute to","page_number":223,"box":{"x":101,"y":98,"width":789,"height":11}},{"id":"0e9b7336-26fa-4b15-b0cb-b32a09a2d8cf","block_type":"box","text":"the effectiveness of the board. In our view, the company’s assessment should consider a number of factors,","page_number":223,"box":{"x":68,"y":113,"width":774,"height":11}},{"id":"36d77b83-9c30-4f95-9e28-fd234a9b5e77","block_type":"box","text":"including each director’s independence and time commitments, as well as the breadth and relevance of director","page_number":223,"box":{"x":70,"y":128,"width":798,"height":11}},{"id":"0d7b394d-4dd8-4837-9c68-8173ba9490c3","block_type":"box","text":"experiences and skillsets, and how these collectively contribute to the board’s effectiveness in advising and","page_number":223,"box":{"x":69,"y":143,"width":770,"height":11}},{"id":"d472571f-8729-4f98-94d0-209e1f7bdb35","block_type":"box","text":"overseeing management in delivering long-term financial returns.","page_number":223,"box":{"x":69,"y":158,"width":459,"height":11}},{"id":"6d64edef-d616-44e0-9644-bb75516c11d3","block_type":"box","text":"Director independence","page_number":223,"box":{"x":69,"y":188,"width":164,"height":11}},{"id":"63373984-d4bf-4b92-8ba5-b87bac95cb57","block_type":"box","text":"Director independence — from management, significant shareholders, or other related par ties — is a central","page_number":223,"box":{"x":102,"y":211,"width":777,"height":11}},{"id":"1e7da5d9-9cd8-4a12-9712-d8c0d6014af9","block_type":"box","text":"tenet of sound corporate governance across markets.","page_number":223,"box":{"x":68,"y":226,"width":382,"height":11}},{"id":"04660ab9-d507-4b4d-b7ab-5c8a534fe3b0","block_type":"box","text":"6","page_number":223,"box":{"x":452,"y":226,"width":4,"height":5}},{"id":"a9e11df3-53a9-4646-8fcb-08852439523a","block_type":"box","text":"We look to boards to have a sufficient number of independent","page_number":223,"box":{"x":462,"y":226,"width":442,"height":11}},{"id":"92b363f5-9792-4865-a0a7-a35735446e55","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":223,"box":{"x":69,"y":241,"width":825,"height":11}},{"id":"bfc2094d-8498-49b8-a580-00a938826651","block_type":"box","text":"and its ability to oversee management. We generally consider it good practice for independent directors to make a","page_number":223,"box":{"x":69,"y":256,"width":813,"height":12}},{"id":"2bf8cb9c-3b2c-41fe-bda9-4cab0acc2975","block_type":"box","text":"majority of the board, or in the case of controlled companies, at least one-third.","page_number":223,"box":{"x":69,"y":271,"width":566,"height":12}},{"id":"133282bc-ef98-47e0-9ec8-68b73af9d828","block_type":"box","text":"Common impediments to independence may include but are not limited to:","page_number":223,"box":{"x":102,"y":294,"width":531,"height":11}},{"id":"adaa8b3d-fa44-4f1b-9cb3-669ea7eb541c","block_type":"box","text":"•","page_number":223,"box":{"x":69,"y":317,"width":6,"height":5}},{"id":"291e4cc2-4f91-44be-ac74-c804068cefad","block_type":"box","text":"Current or recent employment at the company or a subsidiary","page_number":223,"box":{"x":102,"y":314,"width":438,"height":11}},{"id":"a17b0f1a-f4db-458d-99d1-8940faf44c83","block_type":"box","text":"•","page_number":223,"box":{"x":69,"y":337,"width":6,"height":5}},{"id":"d627f1df-c939-47b4-9a55-9feb2149d7a5","block_type":"box","text":"Being, or representing, a shareholder with a substantial shareholding in the company","page_number":223,"box":{"x":102,"y":335,"width":606,"height":11}},{"id":"9c881728-5fb0-42e2-83fa-ae1a4074355e","block_type":"box","text":"•","page_number":223,"box":{"x":69,"y":357,"width":6,"height":5}},{"id":"8643ad7b-59fd-4ef7-843f-680e1255fa10","block_type":"box","text":"Interlocking directorates","page_number":223,"box":{"x":102,"y":355,"width":170,"height":11}},{"id":"51652670-ebc8-4cc5-9b74-09cdef7b7917","block_type":"box","text":"•","page_number":223,"box":{"x":69,"y":378,"width":6,"height":4}},{"id":"1e4d7d02-c5a4-4465-bb4e-c53e8c1ac60e","block_type":"box","text":"Having any other interest, business, or other relationship which could, or could reasonably be perceived to,","page_number":223,"box":{"x":102,"y":375,"width":761,"height":11}},{"id":"dcbe19bb-e999-4f0c-a345-78b9af00636d","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":223,"box":{"x":102,"y":390,"width":738,"height":11}},{"id":"ba500552-0b0c-4599-9fb1-c4c53d6009d7","block_type":"box","text":"In our experience, boards are most effective at overseeing and advising management when there is a senior,","page_number":223,"box":{"x":102,"y":412,"width":775,"height":12}},{"id":"5032ca21-6228-452e-9fbe-fa4dc3f4785e","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":223,"box":{"x":70,"y":428,"width":827,"height":11}},{"id":"7b723782-a0eb-4aa9-8882-6092def4bb1c","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":223,"box":{"x":70,"y":443,"width":835,"height":11}},{"id":"05d65de9-4502-43db-adac-597d3462d75d","block_type":"box","text":"members in fulfilling their oversight responsibilities effectively by shaping the agenda, ensuring adequate information","page_number":223,"box":{"x":69,"y":458,"width":834,"height":11}},{"id":"8d3f72fc-2044-4793-8246-64def0472f74","block_type":"box","text":"is provided to the board, and encouraging independent director par ticipation in board deliberations. We appreciate","page_number":223,"box":{"x":70,"y":473,"width":813,"height":11}},{"id":"550592eb-0b92-465a-9f85-990e3552c436","block_type":"box","text":"when the lead independent director or another appropriate director is available to meet with shareholders to explain","page_number":223,"box":{"x":68,"y":488,"width":826,"height":11}},{"id":"322404c6-cf42-453b-9897-601b0911e81d","block_type":"box","text":"and contextualize a company’s approach as a situation warrants.","page_number":223,"box":{"x":69,"y":503,"width":463,"height":11}},{"id":"3e480b84-3658-407a-8acd-0bbf47cd2961","block_type":"box","text":"Boards may face matters that could involve conflicts of interest for executives or affiliated directors, or that","page_number":223,"box":{"x":102,"y":526,"width":765,"height":11}},{"id":"56260286-2af7-42b1-842f-aa7f2aa8b4f1","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":223,"box":{"x":69,"y":541,"width":837,"height":11}},{"id":"c66e1958-941b-48b9-8f1b-54baac950754","block_type":"box","text":"committees with a majority of independent directors, depending on market norms and a company’s ownership","page_number":223,"box":{"x":69,"y":556,"width":784,"height":11}},{"id":"3d74ca9c-76c8-4b90-8b7a-034ab9822b8b","block_type":"box","text":"structure. In many markets, these committees of the board specialize in audit, director nominations, and","page_number":223,"box":{"x":69,"y":571,"width":747,"height":11}},{"id":"c118cb35-cda8-41ba-9529-7362c9f7b60b","block_type":"box","text":"compensation matters, among others. An ad hoc committee might also be formed to decide on a special transaction,","page_number":223,"box":{"x":69,"y":586,"width":836,"height":12}},{"id":"bae3b4f6-94fe-43b8-965b-ef61088ce38c","block_type":"box","text":"par ticularly one involving a related par ty, or to investigate a significant adverse event.","page_number":223,"box":{"x":70,"y":601,"width":607,"height":12}},{"id":"c165f8ad-7d6f-4f93-aa9e-b596c07e3984","block_type":"box","text":"Sufficient capacity","page_number":223,"box":{"x":68,"y":632,"width":137,"height":11}},{"id":"8c2b05f7-bfde-4b39-85a6-0b3fa9076d93","block_type":"box","text":"As the role and expectations of a director are increasingly demanding, directors must be able to commit an","page_number":223,"box":{"x":101,"y":654,"width":763,"height":12}},{"id":"a4073dd2-1e2d-471d-b92a-d274b07a37bd","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":223,"box":{"x":69,"y":669,"width":830,"height":12}},{"id":"1208b413-8540-4d00-8248-75bb32940329","block_type":"box","text":"all of their responsibilities — including when there are unforeseen events — and therefore, we consider it best","page_number":223,"box":{"x":69,"y":685,"width":791,"height":11}},{"id":"a66815bf-fa11-4e87-9ad9-425194a0e341","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":223,"box":{"x":70,"y":700,"width":804,"height":11}},{"id":"228effb8-879a-482f-bfb9-7711518e5e93","block_type":"box","text":"Board composition","page_number":223,"box":{"x":69,"y":730,"width":135,"height":11}},{"id":"98eea63f-76e2-4293-a408-99030c11f3cc","block_type":"box","text":"In assessing board composition, we take into account a company’s board size, business model, strategy, market","page_number":223,"box":{"x":102,"y":753,"width":806,"height":11}},{"id":"6b57e58d-71d1-4cb3-9bbf-38cfdb093a65","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":223,"box":{"x":69,"y":768,"width":836,"height":11}},{"id":"574da09a-8163-4390-9d5f-6bf06e0e5c62","block_type":"box","text":"companies explain how their approach to board composition suppor ts the company’s governance practices.","page_number":223,"box":{"x":69,"y":783,"width":767,"height":11}},{"id":"9b46d2a3-dd87-4e73-a7ae-0c3a97b04aa3","block_type":"box","text":"When nominating directors to the board, we look to companies to provide sufficient information on the individual","page_number":223,"box":{"x":101,"y":806,"width":802,"height":11}},{"id":"745833db-2a66-4259-98e6-aab8923558cc","block_type":"box","text":"candidates so that shareholders can assess the capabilities and suitability of each individual nominee and their fit","page_number":223,"box":{"x":69,"y":821,"width":818,"height":11}},{"id":"21d5e242-ed5d-4816-9f65-02656f603768","block_type":"box","text":"within overall board composition. These disclosures should explain how the collective experience and exper tise of the","page_number":223,"box":{"x":68,"y":836,"width":840,"height":11}},{"id":"f1a9a447-8f99-4b43-9788-489b30e675d5","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":223,"box":{"x":69,"y":851,"width":823,"height":11}},{"id":"1d00e444-fbbb-4610-aadd-07ffd213588d","block_type":"box","text":"6","page_number":223,"box":{"x":69,"y":881,"width":4,"height":4}},{"id":"4507d5b4-57d1-440d-80ac-c5c00a421d1b","block_type":"box","text":"For example, please see: Tokyo Stock Exchange, “Japan’s Corporate Governance Code,” June 11, 2021; Financial","page_number":223,"box":{"x":79,"y":880,"width":813,"height":11}},{"id":"97e67eb4-73cd-4ade-82fc-b231a55ad3f1","block_type":"box","text":"Repor ting Council, “UK Corporate Governance Code,” January 2024, accessed in December 2025.","page_number":223,"box":{"x":70,"y":895,"width":704,"height":12}},{"id":"2a164c7f-b57b-47fa-b292-6b092a9fd6b2","block_type":"box","text":"BlackRock Investment Stewardship","page_number":223,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"39494cbd-7474-4c6f-a481-5e38884e432d","block_type":"box","text":"Global Principles | 6","page_number":223,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"9b4541d6-8a7f-4a1f-a9c0-8af4eeed5492","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":223,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1fa6a963-58a5-47ba-9b68-a73b12560887","block_type":"box","text":"qualified, engaged directors with professional characteristics relevant to a company’s business and strategy enhance","page_number":224,"box":{"x":69,"y":45,"width":836,"height":11}},{"id":"9d0df4bd-5554-4554-a623-5bfeb6e1cd93","block_type":"box","text":"the ability of the board to add value and be the voice of shareholders in board discussions.","page_number":224,"box":{"x":68,"y":60,"width":650,"height":11}},{"id":"b6da05ce-5cda-48c6-9829-0d56c1f29600","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":224,"box":{"x":102,"y":82,"width":775,"height":12}},{"id":"c08e234e-8000-426f-baea-e32791896f29","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":224,"box":{"x":69,"y":98,"width":806,"height":11}},{"id":"9807c1dc-85e5-4db9-b65b-30db552ce0db","block_type":"box","text":"oversee management. We note that in many markets, policymakers have set board gender diversity goals which we","page_number":224,"box":{"x":69,"y":113,"width":820,"height":11}},{"id":"59fe4558-dea4-40a3-b124-0533bc7fdcf1","block_type":"box","text":"may discuss with companies, par ticularly if there is a risk their board composition may be misaligned.","page_number":224,"box":{"x":69,"y":128,"width":726,"height":11}},{"id":"0673fa6f-b37d-47b3-9ff3-aef0b6e3f3f5","block_type":"box","text":"AUDITORS AND AUDIT-RELATED ISSUES","page_number":224,"box":{"x":342,"y":158,"width":293,"height":9}},{"id":"942725ef-bd36-4d5e-b2ba-f2904a5257fc","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":224,"box":{"x":102,"y":181,"width":795,"height":11}},{"id":"6f8f5f87-31a0-438d-b8c9-44007b4f2417","block_type":"box","text":"company’s financial condition. Accordingly, we look for the assumptions made by management, and reviewed by the","page_number":224,"box":{"x":69,"y":196,"width":825,"height":11}},{"id":"7fb3243e-a0eb-4eb7-ab9f-2c8d9bdbf26d","block_type":"box","text":"auditor in preparing the financial statements, to be reasonable and justified.","page_number":224,"box":{"x":69,"y":211,"width":543,"height":11}},{"id":"65a21d6b-4b19-43ca-9906-bd85c8b71351","block_type":"box","text":"We view the audit committee, or its equivalent, as responsible for overseeing the management of the","page_number":224,"box":{"x":101,"y":234,"width":722,"height":11}},{"id":"6ae183d2-7977-460f-b34d-b2a722eebe7b","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":224,"box":{"x":70,"y":249,"width":778,"height":11}},{"id":"b6b0ce50-f2cb-461f-b13e-5a37c0ab9d24","block_type":"box","text":"company’s financial repor ting system by providing independent oversight of the accounts, material financial, and,","page_number":224,"box":{"x":69,"y":264,"width":806,"height":11}},{"id":"de1d824c-a149-4add-8503-3419b4896aac","block_type":"box","text":"where appropriate to the jurisdiction, non-financial information and internal control frameworks. Moreover, in the","page_number":224,"box":{"x":68,"y":279,"width":799,"height":11}},{"id":"7292c68f-d413-403f-9926-19ce2bde2060","block_type":"box","text":"absence of a dedicated risk committee, these committees can provide oversight of Enterprise Risk Management","page_number":224,"box":{"x":69,"y":294,"width":801,"height":11}},{"id":"c37cf4d3-4fe7-46d6-a1a9-afb05d1df479","block_type":"box","text":"systems.","page_number":224,"box":{"x":69,"y":310,"width":62,"height":10}},{"id":"3702400a-fa4f-4d41-affd-13be51fd2374","block_type":"box","text":"7","page_number":224,"box":{"x":133,"y":310,"width":4,"height":4}},{"id":"1b40e87d-546d-48c4-b4f3-08a9e3cc7fc8","block_type":"box","text":"In our view, effective audit committee oversight strengthens the quality and reliability of a company’s","page_number":224,"box":{"x":144,"y":309,"width":717,"height":11}},{"id":"80735246-1e76-4a5f-88fc-f2c81f68d7be","block_type":"box","text":"financial statements and provides an impor tant level of reassurance to shareholders.","page_number":224,"box":{"x":68,"y":324,"width":609,"height":11}},{"id":"d1e77fe5-8c62-4047-aeb4-0aa69b2736d1","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":224,"box":{"x":101,"y":347,"width":727,"height":11}},{"id":"cb36dec6-1772-47d5-9c4f-9ad519cefb01","block_type":"box","text":"responsibilities. Additionally, having a rotation plan can periodically refresh the committee membership and introduce","page_number":224,"box":{"x":69,"y":362,"width":835,"height":11}},{"id":"f4088e92-aada-4248-8eb2-6fd1cf5687e0","block_type":"box","text":"new perspectives. We recognize that audit committees will rely on management, internal audit, and the independent","page_number":224,"box":{"x":69,"y":377,"width":827,"height":12}},{"id":"5d4c9f42-2d49-4f03-9dc4-fe4a5d690a85","block_type":"box","text":"auditor to fulfill their responsibilities. However, we look to committee members to demonstrate they have relevant","page_number":224,"box":{"x":69,"y":392,"width":810,"height":12}},{"id":"ef2af4f6-3f8f-482e-906e-a7231e4bffc3","block_type":"box","text":"exper tise to monitor and oversee the audit process and related activities.","page_number":224,"box":{"x":69,"y":408,"width":523,"height":10}},{"id":"3485a682-c044-4e76-b5e4-96bd76c85a57","block_type":"box","text":"We take par ticular note of unexplained changes in repor ting methodology, cases involving significant financial","page_number":224,"box":{"x":101,"y":430,"width":780,"height":11}},{"id":"da850a08-6319-490c-8f3f-21e8aec808cb","block_type":"box","text":"restatements, or ad hoc notifications of material financial weakness. In this respect, we look to audit committees to","page_number":224,"box":{"x":69,"y":445,"width":828,"height":11}},{"id":"171e1949-1a35-465b-b5bf-2a8d3b42366f","block_type":"box","text":"provide timely disclosure on the remediation of key and critical audit matters identified either by the external auditor","page_number":224,"box":{"x":70,"y":460,"width":827,"height":12}},{"id":"4867d657-3c44-43e1-ab8a-5693c0274ec2","block_type":"box","text":"or internal audit function.","page_number":224,"box":{"x":69,"y":475,"width":178,"height":9}},{"id":"68e76b6b-4ec2-4430-b453-d09803a990be","block_type":"box","text":"The integrity of financial statements depends on the auditor being free of any impediments that could","page_number":224,"box":{"x":101,"y":498,"width":723,"height":11}},{"id":"aedaad42-7b56-4382-bd07-61d1aca78818","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":224,"box":{"x":69,"y":513,"width":825,"height":12}},{"id":"6ccd2991-314c-4f62-b948-69a69672cd43","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":224,"box":{"x":69,"y":528,"width":824,"height":12}},{"id":"3eb052c6-fdaf-4d97-ba74-73be46449fda","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":224,"box":{"x":70,"y":543,"width":839,"height":11}},{"id":"468edb0b-64ef-40a9-b57f-1e224e6ba38d","block_type":"box","text":"assessing the independence of the auditor and the quality of the external audit process on an annual basis.","page_number":224,"box":{"x":69,"y":559,"width":770,"height":11}},{"id":"6fda2b8c-e829-4dc8-9e6a-3f1b3db41fd6","block_type":"box","text":"Comprehensive disclosure provides investors with an understanding of the company’s long-term operational risk","page_number":224,"box":{"x":102,"y":581,"width":799,"height":12}},{"id":"4b4e53b8-1b37-4a8f-ae5e-eb1b751fd799","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":224,"box":{"x":69,"y":596,"width":836,"height":12}},{"id":"02452ef4-4a31-4638-8700-0663d8ca28bb","block_type":"box","text":"to periodically review the company’s risk assessment and risk management policies and the significant risks and","page_number":224,"box":{"x":68,"y":612,"width":806,"height":11}},{"id":"89fb6396-75ff-432b-b5d0-782842af279a","block_type":"box","text":"exposures identified by management, the internal auditors or the independent auditors, and management’s steps to","page_number":224,"box":{"x":69,"y":627,"width":829,"height":11}},{"id":"12488cd4-6e3e-49c5-8dfd-896cfe6f8acc","block_type":"box","text":"address them. In the absence of detailed disclosures, we may conclude that companies are not adequately managing","page_number":224,"box":{"x":69,"y":642,"width":840,"height":11}},{"id":"ef8e5b6e-2250-420c-bfcc-684ca137f6fb","block_type":"box","text":"risk.","page_number":224,"box":{"x":69,"y":657,"width":28,"height":9}},{"id":"49769d2c-2279-4a82-b170-1d6eda4d3679","block_type":"box","text":"CAPITAL STRUCTURE, MERGERS, ACQUISITIONS, ASSET SALES, AND OTHER SPECIAL SITUATIONS","page_number":224,"box":{"x":125,"y":687,"width":728,"height":11}},{"id":"07e9ea9a-f17d-4ada-be42-be33bb115753","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":224,"box":{"x":101,"y":710,"width":798,"height":11}},{"id":"cce51925-8e3a-4d5d-b67e-1971a9ed2616","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":224,"box":{"x":70,"y":725,"width":824,"height":11}},{"id":"50ca03d9-73a0-4ec7-bae4-86bdc3c6e4b6","block_type":"box","text":"protection for shareholders against the dilution of their interests.","page_number":224,"box":{"x":70,"y":740,"width":460,"height":11}},{"id":"9d556f7d-3eb3-4627-bf0e-fff27c9b7360","block_type":"box","text":"In principle, we have concerns with the creation of a share class with equivalent economic exposure and","page_number":224,"box":{"x":102,"y":763,"width":743,"height":11}},{"id":"b25380c3-9fb2-4d67-9526-62541f0359da","block_type":"box","text":"differentiated voting rights. As a result, BIS generally suppor ts bylaw amendments that introduce the adoption of","page_number":224,"box":{"x":69,"y":778,"width":805,"height":11}},{"id":"b102db9f-c4f1-4e75-ba11-7e0b3a7aa29d","block_type":"box","text":"“one share, one vote” for registered shareholders.","page_number":224,"box":{"x":70,"y":793,"width":358,"height":11}},{"id":"bf7cbd73-1c0c-4caa-9550-d8cc1ba1c73c","block_type":"box","text":"7","page_number":224,"box":{"x":69,"y":823,"width":4,"height":4}},{"id":"ba60a865-5660-4ebe-a716-14596d9adac1","block_type":"box","text":"Enterprise Risk Management is a process, effected by the entity’s board of directors, management, and other","page_number":224,"box":{"x":79,"y":822,"width":784,"height":12}},{"id":"729c921a-4ecc-442e-85d7-52ef09531161","block_type":"box","text":"personnel, applied in strategy setting and across the enterprise, designed to identify potential events that may affect","page_number":224,"box":{"x":70,"y":837,"width":834,"height":12}},{"id":"6b3b4f99-278c-48bc-8742-ec7f23829b27","block_type":"box","text":"the entity, and manage risk to be within the risk appetite, to provide reasonable assurance regarding the achievement","page_number":224,"box":{"x":68,"y":853,"width":841,"height":11}},{"id":"c4f72aaf-fc46-4a93-ab5d-8dd7ee9d0b5b","block_type":"box","text":"of objectives. Please see: The Committee of Sponsoring Organizations of the Treadway Commission (COSO),","page_number":224,"box":{"x":69,"y":868,"width":771,"height":11}},{"id":"5ac3d2a6-8c91-4f26-bf18-a60b816ba6b6","block_type":"box","text":"“Enterprise Risk Management,” 2023, accessed in December 2025.","page_number":224,"box":{"x":70,"y":883,"width":488,"height":11}},{"id":"8bc0cdfb-34db-4cfb-b9d9-a7f6d912e574","block_type":"box","text":"BlackRock Investment Stewardship","page_number":224,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"302c479d-210f-418f-95a2-dc9ba18453b0","block_type":"box","text":"Global Principles | 7","page_number":224,"box":{"x":768,"y":942,"width":140,"height":13}},{"id":"292f844f-fd99-498c-b2f4-88b88828af3c","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":224,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a304211c-c091-4fea-8acd-2a720d823d7b","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":225,"box":{"x":102,"y":45,"width":798,"height":11}},{"id":"2b5693cd-5ae0-4dd3-b11d-c0b50e8cbabd","block_type":"box","text":"for listing dual classes of shares with differentiated voting rights. In our view, such companies should review these","page_number":225,"box":{"x":68,"y":60,"width":818,"height":11}},{"id":"f4542132-ae09-48a5-95f2-d490ad981142","block_type":"box","text":"share class structures on a regular basis or as company circumstances change. Additionally, they should seek","page_number":225,"box":{"x":69,"y":75,"width":788,"height":11}},{"id":"5a5760ed-1816-44b1-b149-b170d4635fe6","block_type":"box","text":"shareholder approval of their capital structure on a periodic basis via a management proposal at the company’s","page_number":225,"box":{"x":69,"y":90,"width":797,"height":11}},{"id":"d533525f-d887-4462-81a3-a8be15041717","block_type":"box","text":"shareholder meeting. The proposal should give unaffiliated shareholders the oppor tunity to affirm the current","page_number":225,"box":{"x":69,"y":105,"width":780,"height":11}},{"id":"c4c96c90-7a1f-4f73-b432-da05f7a6a2ad","block_type":"box","text":"structure or establish mechanisms to end or phase out controlling structures at the appropriate time, while","page_number":225,"box":{"x":69,"y":120,"width":764,"height":12}},{"id":"7d2a71f9-1493-4f34-8545-dc6a03a4971d","block_type":"box","text":"minimizing costs to shareholders.","page_number":225,"box":{"x":69,"y":136,"width":238,"height":11}},{"id":"233edb17-8e30-4ec5-b3b0-93cb5ab9b4e8","block_type":"box","text":"In assessing mergers, asset sales, or other special situations, BIS’ primary consideration is the long-term","page_number":225,"box":{"x":102,"y":158,"width":756,"height":11}},{"id":"a53ecc3b-54b6-480f-ba1f-92878f66c957","block_type":"box","text":"financial interests of our clients as shareholders, and so we will review any proposed transaction with that objective","page_number":225,"box":{"x":68,"y":173,"width":826,"height":11}},{"id":"a5fdfda4-4774-44ef-a829-fef01cbbfe31","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":225,"box":{"x":70,"y":188,"width":806,"height":11}},{"id":"ac900aed-2639-4f4a-961d-7f4e4e954a7c","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":225,"box":{"x":69,"y":204,"width":799,"height":11}},{"id":"c5d7c575-0064-45e3-ac9b-0332356ec894","block_type":"box","text":"economic and strategic rationale. We may also seek reassurance from the board that the financial interests of","page_number":225,"box":{"x":69,"y":218,"width":788,"height":12}},{"id":"9e931ea5-7625-46eb-b4fd-01000a802fe1","block_type":"box","text":"executives and/or board members in a given transaction have not adversely affected their ability to place","page_number":225,"box":{"x":69,"y":234,"width":750,"height":11}},{"id":"afe1c2f2-39e2-43ec-95b8-24b7f853e617","block_type":"box","text":"shareholders’ interests before their own. Where the transaction involves related par ties, the recommendation to","page_number":225,"box":{"x":69,"y":249,"width":801,"height":11}},{"id":"cf07bf80-7a46-4869-84d7-ed50df0606ff","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":225,"box":{"x":69,"y":264,"width":830,"height":11}},{"id":"2235facd-c659-413d-a4b6-1010888ca94c","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":225,"box":{"x":69,"y":279,"width":836,"height":11}},{"id":"5bee9169-4d7a-46f3-b711-d9c5d1fbef97","block_type":"box","text":"a separate vote of the non-conflicted par ties.","page_number":225,"box":{"x":69,"y":294,"width":320,"height":11}},{"id":"5447e34f-c8b1-4d0a-8ab1-ff80b8e57d77","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":225,"box":{"x":101,"y":317,"width":806,"height":11}},{"id":"ae6df361-4782-42d6-9270-85c8dd1a683e","block_type":"box","text":"open market without unnecessary restriction. In our view, corporate mechanisms designed to limit shareholders’","page_number":225,"box":{"x":69,"y":332,"width":801,"height":11}},{"id":"d1c553d7-933c-4d5d-ace0-219b8505b3c3","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":225,"box":{"x":69,"y":347,"width":829,"height":11}},{"id":"c1987054-2e4c-4ed0-80a7-9ec93a297cbc","block_type":"box","text":"interests other than those of the shareholders. In our view, shareholders are broadly capable of making decisions in","page_number":225,"box":{"x":70,"y":362,"width":826,"height":11}},{"id":"235683c8-d54b-4c79-a9db-a048adade924","block_type":"box","text":"their own best interests. We encourage any shareholder rights plans proposed by a board to be subject to","page_number":225,"box":{"x":68,"y":377,"width":755,"height":12}},{"id":"7ee93c39-f104-4aa5-a22b-60c94080b3f3","block_type":"box","text":"shareholder approval upon introduction and periodically thereafter.","page_number":225,"box":{"x":69,"y":392,"width":472,"height":12}},{"id":"b10be4b4-f253-4995-8a86-cedd9ecd565e","block_type":"box","text":"EXECUTIVE COMPENSATION AND BENEFITS","page_number":225,"box":{"x":328,"y":423,"width":322,"height":9}},{"id":"88bbfede-1e58-4014-9345-534f3315c13d","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":225,"box":{"x":102,"y":445,"width":799,"height":12}},{"id":"5a0e40ed-4c04-412c-9b04-1b44517e50a1","block_type":"box","text":"well-structured compensation policy rewards the successful delivery of strategic, operational, and/or financial goals;","page_number":225,"box":{"x":68,"y":460,"width":830,"height":12}},{"id":"5a1c8e8f-32f5-4616-9b22-c2dc0c5aba4f","block_type":"box","text":"encourages an appropriate risk appetite; and aligns the interests of shareholders and executives through equity","page_number":225,"box":{"x":69,"y":475,"width":797,"height":12}},{"id":"f29b25f1-0d07-4bc5-8340-3dcf97a48252","block_type":"box","text":"ownership.","page_number":225,"box":{"x":69,"y":491,"width":75,"height":11}},{"id":"6ae73926-2ab5-4343-9705-8bd18315552d","block_type":"box","text":"8","page_number":225,"box":{"x":146,"y":491,"width":4,"height":4}},{"id":"f00cb100-c23b-40f2-a554-42ef164cee00","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":225,"box":{"x":101,"y":513,"width":793,"height":11}},{"id":"d029bc9e-d60e-428a-81a8-81384e936184","block_type":"box","text":"financial value creation for our clients as shareholders. We appreciate when per formance targets incorporate","page_number":225,"box":{"x":68,"y":528,"width":778,"height":12}},{"id":"8a45c8a2-2bae-4784-baa9-7219cff4ec54","block_type":"box","text":"ambitious objectives, and the corresponding metrics are aligned with the company’s strategy and business model.","page_number":225,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"d6004741-522f-466e-b02b-7624fa58c99d","block_type":"box","text":"BIS does not have a position on whether companies choose to use sustainability-related criteria in compensation","page_number":225,"box":{"x":70,"y":559,"width":804,"height":11}},{"id":"05ba922b-ce7e-458f-8eed-07a8be043fbf","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":225,"box":{"x":69,"y":574,"width":814,"height":11}},{"id":"ba7d8c5e-5fac-4714-9cc3-426f0730fca8","block_type":"box","text":"financial or operational targets. We appreciate when long-term incentive plans encompass timeframes that: 1) are","page_number":225,"box":{"x":68,"y":589,"width":813,"height":11}},{"id":"1e6b3cd0-5a3c-42ba-a3d9-a4bcd3e539b3","block_type":"box","text":"distinct from annual executive compensation structures and metrics, and 2) encourage the delivery of strong financial","page_number":225,"box":{"x":69,"y":604,"width":839,"height":11}},{"id":"2498f059-fba7-4327-87ac-b8db43778491","block_type":"box","text":"results over a period of years.","page_number":225,"box":{"x":69,"y":619,"width":211,"height":11}},{"id":"2012feb7-ec0a-4f2a-a10f-03634267a3c6","block_type":"box","text":"We consider it best practice when board members responsible for designing and approving executive","page_number":225,"box":{"x":101,"y":642,"width":718,"height":11}},{"id":"69e72f40-8848-4c84-bc58-70cbdfe39cba","block_type":"box","text":"compensation carefully consider the company’s specific circumstances. Factors to consider may include the","page_number":225,"box":{"x":69,"y":657,"width":770,"height":11}},{"id":"fd074361-f766-415d-ad7d-196e9097bff8","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":225,"box":{"x":69,"y":672,"width":838,"height":11}},{"id":"4d91c676-8f13-482e-96d8-51a3332d0717","block_type":"box","text":"look to the compensation committees to guard against contractual arrangements that would entitle executives to","page_number":225,"box":{"x":70,"y":687,"width":804,"height":11}},{"id":"f17d2446-ccb3-48cb-b89e-473ea4f57bc7","block_type":"box","text":"material compensation for early termination of their employment. Finally, we look for pension contributions and other","page_number":225,"box":{"x":69,"y":702,"width":831,"height":11}},{"id":"7eab650e-308a-44c5-8f0b-4411ae2e4442","block_type":"box","text":"deferred compensation arrangements to be reasonable in light of market practices or the company’s business and","page_number":225,"box":{"x":69,"y":717,"width":817,"height":12}},{"id":"c5f67199-405e-49db-9cce-c491b110ba3c","block_type":"box","text":"executive compensation strategies.","page_number":225,"box":{"x":69,"y":733,"width":250,"height":11}},{"id":"ed3818b1-ac76-48eb-9b51-f996d369b5d1","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":225,"box":{"x":101,"y":755,"width":772,"height":11}},{"id":"9dcba4c7-b1be-4be7-918d-425a031f085b","block_type":"box","text":"discretion has been used by the compensation committee, or its equivalent, we appreciate disclosure relating to how","page_number":225,"box":{"x":69,"y":771,"width":836,"height":11}},{"id":"4bd58f40-beca-4ce3-93f8-9538addbd512","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":225,"box":{"x":69,"y":785,"width":803,"height":12}},{"id":"aa1a25d7-8599-474c-80b6-8e32196c068c","block_type":"box","text":"addition, we acknowledge that the use of peer group evaluation by compensation committees can help ensure","page_number":225,"box":{"x":69,"y":801,"width":785,"height":11}},{"id":"af8bd6f8-64ed-4e6d-86bb-b34234258f67","block_type":"box","text":"competitive pay. However, we encourage companies to clearly explain how compensation outcomes have rewarded","page_number":225,"box":{"x":69,"y":816,"width":815,"height":11}},{"id":"5d42448f-4593-4235-ae63-de8262c3bfa9","block_type":"box","text":"per formance rather than solely base increases in total compensation on peer benchmarking.","page_number":225,"box":{"x":70,"y":831,"width":659,"height":11}},{"id":"96a0ff77-fdc1-42b5-86bf-895fb59e76ae","block_type":"box","text":"8","page_number":225,"box":{"x":69,"y":860,"width":4,"height":5}},{"id":"74a33dfa-f451-44a9-8588-ea7ad965a1a7","block_type":"box","text":"The terms “compensation,” “remuneration,” and “pay” are used interchangeably to describe the same concept in","page_number":225,"box":{"x":78,"y":860,"width":811,"height":11}},{"id":"c5423e34-ec23-4d00-bafa-8bc21cb1bd66","block_type":"box","text":"different markets.","page_number":225,"box":{"x":69,"y":875,"width":126,"height":9}},{"id":"a150a398-4d91-445c-a00a-55e78ede06c7","block_type":"box","text":"BlackRock Investment Stewardship","page_number":225,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"7f12292d-8181-40f1-8f28-2fa1a40035c9","block_type":"box","text":"Global Principles | 8","page_number":225,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"69b69fad-a0fa-4cc1-a586-8ddef0a77720","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":225,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2cb1bb58-ba0b-4fda-9f36-b99ba13278f5","block_type":"box","text":"We consider the inclusion of building clawback provisions into incentive plans as good practice. Such provisions","page_number":226,"box":{"x":101,"y":45,"width":797,"height":11}},{"id":"554d5506-d3d2-4006-a752-908ed142ea67","block_type":"box","text":"could require executives to forgo awards when compensation was based on faulty financial statements or deceptive","page_number":226,"box":{"x":69,"y":60,"width":825,"height":11}},{"id":"a2157c63-938a-484c-9b41-556f69d2ebc2","block_type":"box","text":"business practices, or when their behavior caused material financial harm to shareholders, material reputational risk","page_number":226,"box":{"x":69,"y":75,"width":833,"height":11}},{"id":"8f45d925-ddc5-41d1-bcbc-545099cb5231","block_type":"box","text":"to the company, or resulted in a criminal investigation.","page_number":226,"box":{"x":68,"y":90,"width":386,"height":11}},{"id":"43c1efc7-7bcc-46d9-993b-02cc00f0c509","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":226,"box":{"x":102,"y":113,"width":803,"height":11}},{"id":"c73c2045-e688-434c-a29e-7db395f08ea6","block_type":"box","text":"effor t expended in fulfilling their professional responsibilities. Additionally, these compensation arrangements should","page_number":226,"box":{"x":69,"y":128,"width":834,"height":11}},{"id":"056d8471-08f2-4a36-9b6f-8e3f11f8dc14","block_type":"box","text":"not risk compromising directors’ independence or aligning their interests too closely with those of the management,","page_number":226,"box":{"x":69,"y":143,"width":825,"height":11}},{"id":"3389b7da-b608-4df7-8527-236f1fc4118d","block_type":"box","text":"whom they are charged with overseeing.","page_number":226,"box":{"x":68,"y":158,"width":285,"height":11}},{"id":"0271532a-671f-4546-8054-5d24ebf02337","block_type":"box","text":"When assessing compensation proposals, BIS reviews companies’ disclosures to determine whether the board’s","page_number":226,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"4da4fece-7d1f-4281-8dbf-5330b1605d6b","block_type":"box","text":"approach to executive compensation is rigorous in light of the company’s stated long-term corporate strategy and","page_number":226,"box":{"x":69,"y":196,"width":807,"height":11}},{"id":"70321672-2d41-4a53-8a8d-a66e4be07dde","block_type":"box","text":"specific circumstances, as well as local market and policy developments.","page_number":226,"box":{"x":69,"y":211,"width":521,"height":11}},{"id":"d9cf1909-0990-4c1e-94f5-ef52876add12","block_type":"box","text":"When our analysis indicates that executive compensation is misaligned with company per formance, BIS may not","page_number":226,"box":{"x":101,"y":234,"width":802,"height":11}},{"id":"455d16b7-809e-4b55-9715-636c3f1608bc","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":226,"box":{"x":69,"y":249,"width":838,"height":11}},{"id":"c6708e96-f55a-4d63-a017-561d9707c14f","block_type":"box","text":"members of the compensation committee or equivalent board members for poor compensation practices or","page_number":226,"box":{"x":69,"y":264,"width":766,"height":11}},{"id":"f84b8790-00ec-4bb3-849d-8861aef9e536","block_type":"box","text":"structures.","page_number":226,"box":{"x":69,"y":280,"width":76,"height":8}},{"id":"e2ac106f-785e-4f93-bfb6-e662eead21bf","block_type":"box","text":"SHAREHOLDER PROTECTIONS AND OTHER CORPORATE GOVERNANCE MATTERS","page_number":226,"box":{"x":191,"y":309,"width":595,"height":9}},{"id":"25159116-d3a3-45c4-bc2d-d1819e8be3c6","block_type":"box","text":"Corporate form","page_number":226,"box":{"x":69,"y":339,"width":108,"height":11}},{"id":"fdc6634b-62b6-409d-b068-b122faddbcc0","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":226,"box":{"x":102,"y":362,"width":781,"height":11}},{"id":"fc8f897d-7835-4c5a-af9b-8f06f7003b53","block_type":"box","text":"the company’s purpose and business model.","page_number":226,"box":{"x":68,"y":377,"width":320,"height":11}},{"id":"9af1f6fb-a4fe-4c73-b6c6-ac785979b3f9","block_type":"box","text":"9","page_number":226,"box":{"x":390,"y":378,"width":4,"height":4}},{"id":"aa49577a-ce20-4080-a8f5-e49c7b9701f2","block_type":"box","text":"We look to companies proposing to change their corporate form to a","page_number":226,"box":{"x":399,"y":377,"width":487,"height":12}},{"id":"29898764-2301-4659-9364-64f13d89df7e","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":226,"box":{"x":70,"y":392,"width":791,"height":12}},{"id":"5625469e-daa9-4c00-a141-ad1f23a9105f","block_type":"box","text":"applicable law. We appreciate when suppor ting documentation from companies or shareholders proposing to alter the","page_number":226,"box":{"x":69,"y":407,"width":839,"height":12}},{"id":"db4dd633-04eb-4628-9b99-f97708c071e3","block_type":"box","text":"corporate form clearly explains how the interests of shareholders and different stakeholders would be impacted as","page_number":226,"box":{"x":69,"y":423,"width":818,"height":11}},{"id":"1ad0b050-30f8-4912-afa5-eacd49feb3c1","block_type":"box","text":"well as the accountability and voting mechanisms that would be available to shareholders. We generally suppor t","page_number":226,"box":{"x":68,"y":438,"width":800,"height":11}},{"id":"1f2d1809-14d2-4333-9eba-f9c45a110234","block_type":"box","text":"management proposals if our analysis indicates that shareholders’ financial interests are adequately protected.","page_number":226,"box":{"x":69,"y":453,"width":796,"height":11}},{"id":"3dbe89fe-c4ff-4c95-b594-aaac26f5638c","block_type":"box","text":"Corporate form shareholder proposals are evaluated on a case-by-case basis.","page_number":226,"box":{"x":69,"y":468,"width":552,"height":11}},{"id":"001204cb-7422-4985-aaae-58a69586e042","block_type":"box","text":"SHAREHOLDER PROPOSALS","page_number":226,"box":{"x":385,"y":498,"width":207,"height":9}},{"id":"43625bcd-b7dd-4897-9fe1-74b8ea3755d6","block_type":"box","text":"In most markets, shareholders can submit proposals to be voted on at a company’s shareholder meeting, as","page_number":226,"box":{"x":102,"y":521,"width":777,"height":11}},{"id":"35272458-98cd-462d-ae71-4524780ac6cb","block_type":"box","text":"long as cer tain requirements are met. Shareholder proposals span a wide range of topics, including governance","page_number":226,"box":{"x":70,"y":536,"width":796,"height":11}},{"id":"b1e688df-fe1f-4a0b-87b5-a2ca21e77239","block_type":"box","text":"reforms, capital management, and changes in the management or disclosure of sustainability-related risks. These","page_number":226,"box":{"x":69,"y":551,"width":813,"height":11}},{"id":"af7db6f9-8bbe-4f73-a8fb-7f9a1998a184","block_type":"box","text":"proposals have a varying degree of relevance for companies across sectors, locations, and business models.","page_number":226,"box":{"x":70,"y":566,"width":779,"height":11}},{"id":"65e739c1-73d8-4cda-8c1c-91fc65010734","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":226,"box":{"x":102,"y":589,"width":775,"height":11}},{"id":"7fe38468-18d7-40f9-903d-62bf051d5ef9","block_type":"box","text":"proposal’s implications for long-term financial value creation for shareholders. Our analysis considers whether a","page_number":226,"box":{"x":70,"y":604,"width":796,"height":11}},{"id":"ee280ca8-27a5-4436-8875-dea9a2d245d2","block_type":"box","text":"shareholder proposal addresses a material risk that may impact a company’s long-term financial per formance. BIS","page_number":226,"box":{"x":69,"y":619,"width":818,"height":11}},{"id":"c4414f55-3562-4b5e-b682-c327bdecc5b4","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":226,"box":{"x":69,"y":634,"width":809,"height":12}},{"id":"bb4ac253-7fc0-4b76-be56-f76a272b744c","block_type":"box","text":"clients, better understand the material risks and oppor tunities companies face and how they are managing them,","page_number":226,"box":{"x":69,"y":649,"width":807,"height":12}},{"id":"b4374281-ba89-4597-b4dc-f31b882a279b","block_type":"box","text":"especially where this information is additive given the company’s existing disclosures. We look for consistency","page_number":226,"box":{"x":69,"y":664,"width":787,"height":12}},{"id":"62f00c06-f248-4911-9b89-a7c89e149abc","block_type":"box","text":"between the specific request formally made in the proposal, the suppor ting documentation, and the proponents’","page_number":226,"box":{"x":69,"y":680,"width":801,"height":11}},{"id":"84a776e1-5555-4c82-b200-559cbf6925d9","block_type":"box","text":"other communications on the issues. We also assess the company’s practices and disclosures and the costs and","page_number":226,"box":{"x":69,"y":695,"width":813,"height":11}},{"id":"509b19b2-59f5-4f3b-94a3-3160a99bbdfd","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":226,"box":{"x":69,"y":710,"width":791,"height":11}},{"id":"41aa7b02-82de-483a-bcbd-01629e617c0f","block_type":"box","text":"governance practices and disclosures against those of their peers.","page_number":226,"box":{"x":68,"y":725,"width":475,"height":11}},{"id":"fd1bb4d6-9f9f-4b69-be38-2cb60d3f7ef1","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":226,"box":{"x":102,"y":748,"width":787,"height":11}},{"id":"7e215c82-0580-4273-9ef7-a3d63b94375b","block_type":"box","text":"seek to micromanage companies. We take into consideration the legal effect of the proposal, as shareholder","page_number":226,"box":{"x":69,"y":763,"width":778,"height":11}},{"id":"11ae1d0d-6490-4d8d-bb6e-5c5eb314f9e2","block_type":"box","text":"proposals may be advisory or legally binding depending on the jurisdiction, while others may make requests that","page_number":226,"box":{"x":70,"y":778,"width":799,"height":11}},{"id":"7bdf4115-9530-43fe-b0f7-cb0cf6165616","block_type":"box","text":"would be deemed illegal in a given jurisdiction.","page_number":226,"box":{"x":68,"y":793,"width":331,"height":11}},{"id":"b6139058-e85f-4ef1-b172-d33654f0849b","block_type":"box","text":"In our experience, it is helpful when companies disclose the names of the proponent or organization that has","page_number":226,"box":{"x":102,"y":816,"width":777,"height":11}},{"id":"f3a0bd81-21bd-4470-b996-54e16781ea24","block_type":"box","text":"submitted or advised on the proposal. We recognize that some shareholder proposals bundle topics and/or specific","page_number":226,"box":{"x":69,"y":831,"width":825,"height":11}},{"id":"fdd8a12c-46b4-425d-b522-c7d2116c1b46","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":226,"box":{"x":69,"y":846,"width":788,"height":11}},{"id":"24fac46b-3148-4e55-bd32-a2ab1cbb6557","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":226,"box":{"x":69,"y":861,"width":820,"height":11}},{"id":"495bf876-07d4-4f87-90f1-476dfff9b265","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":226,"box":{"x":68,"y":876,"width":831,"height":11}},{"id":"f783fc7d-9387-45f2-b6de-5494f8e0148a","block_type":"box","text":"9","page_number":226,"box":{"x":69,"y":906,"width":4,"height":4}},{"id":"f129f03b-3853-4011-ae56-97e7b4ae5530","block_type":"box","text":"Corporate form refers to the legal structure by which a business is organized.","page_number":226,"box":{"x":79,"y":905,"width":550,"height":12}},{"id":"a3e8b5fb-0185-416a-9c5d-15c794f9ff12","block_type":"box","text":"BlackRock Investment Stewardship","page_number":226,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"17567fa3-0154-443b-b423-a174845d54f9","block_type":"box","text":"Global Principles | 9","page_number":226,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"6eb49af9-dbf9-4ff6-97d9-81473ae87594","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":226,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"41c73745-69f3-4119-ac82-532712e8dba2","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":227,"box":{"x":68,"y":45,"width":829,"height":11}},{"id":"47f42068-38cf-4794-90f2-4dad2ced0cdb","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":227,"box":{"x":69,"y":60,"width":802,"height":11}},{"id":"0a16b400-dc22-4635-b198-d522b9ea2e76","block_type":"box","text":"long-term financial interests.","page_number":227,"box":{"x":70,"y":75,"width":201,"height":11}},{"id":"479dbb29-8230-4c6d-bca3-d18f570f7647","block_type":"box","text":"BlackRock is subject to cer tain rules, regulations, agency guidance, and contractual agreements that place","page_number":227,"box":{"x":102,"y":98,"width":763,"height":11}},{"id":"da5f7dfe-8a16-4304-9305-6e5684b0dac0","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":227,"box":{"x":69,"y":113,"width":809,"height":11}},{"id":"95ba24d8-df6f-4bbc-8c93-a5ca59394a05","block_type":"box","text":"clients. BlackRock does not nominate directors for board elections or submit shareholder proposals to companies.","page_number":227,"box":{"x":69,"y":128,"width":817,"height":11}},{"id":"3fd6c3af-4a52-44fa-8c8c-641b469fed5d","block_type":"box","text":"Non-compliance with these requirements could adversely affect BlackRock’s ability to serve its clients’ interests.","page_number":227,"box":{"x":70,"y":143,"width":803,"height":11}},{"id":"596ab760-92ae-4be9-8751-98af220ad1f7","block_type":"box","text":"MATERIAL SUSTAINABILITY-RELATED RISKS AND OPPORTUNITIES","page_number":227,"box":{"x":247,"y":173,"width":484,"height":9}},{"id":"b3bd6be4-aeba-4fa8-a271-d2d97ff95cb6","block_type":"box","text":"Appropriate oversight of material risks and oppor tunities, including material sustainability-related risks and","page_number":227,"box":{"x":101,"y":196,"width":760,"height":11}},{"id":"28272cc0-1bf5-4789-b0b0-423abc526ef4","block_type":"box","text":"oppor tunities, is an impor tant component of having an effective governance framework that suppor ts durable, long","page_number":227,"box":{"x":69,"y":211,"width":824,"height":11}},{"id":"c62abe0f-00d7-48f1-8495-ed378126780b","block_type":"box","text":"term financial value creation.","page_number":227,"box":{"x":68,"y":226,"width":206,"height":9}},{"id":"72550ed2-5f7a-4ee1-9fb2-a5b0a0282ad4","block_type":"box","text":"10","page_number":227,"box":{"x":276,"y":226,"width":9,"height":5}},{"id":"ab62a052-effc-488f-a2d1-18dbb800c71f","block_type":"box","text":"We look to companies to provide robust disclosure that allows investors to effectively evaluate companies’","page_number":227,"box":{"x":101,"y":249,"width":761,"height":11}},{"id":"4198cfbb-8fbd-4595-9105-24727727f01c","block_type":"box","text":"strategy and business practices related to material sustainability-related risks and oppor tunities. We find it helpful","page_number":227,"box":{"x":69,"y":264,"width":814,"height":11}},{"id":"66721d1a-f9d2-4c85-abc6-c3d22d075351","block_type":"box","text":"when companies’ disclosures demonstrate that they have a resilient business model that integrates material","page_number":227,"box":{"x":68,"y":279,"width":777,"height":11}},{"id":"a47af699-1933-4219-8666-fd11ddbeccd1","block_type":"box","text":"sustainability-related risks and oppor tunities into their strategy, risk management, and metrics and targets, including","page_number":227,"box":{"x":69,"y":294,"width":833,"height":11}},{"id":"fba4bb5d-9bf4-4374-8e88-d3016c384fa4","block_type":"box","text":"industry-specific metrics.","page_number":227,"box":{"x":70,"y":309,"width":175,"height":11}},{"id":"f1e4f647-f84f-493a-808d-921f2a721a29","block_type":"box","text":"Standardized disclosure of sustainability-related data suppor ts investors in making informed decisions. The","page_number":227,"box":{"x":102,"y":332,"width":765,"height":11}},{"id":"7bf1f7cb-436c-4d17-b76b-1097249528fd","block_type":"box","text":"International Sustainability Standards Board (ISSB) standards, IFRS S1 and S2, represent one such approach to","page_number":227,"box":{"x":70,"y":347,"width":800,"height":11}},{"id":"6747e3bd-35ea-4001-b9a3-36ba52c325ab","block_type":"box","text":"standardization that we find useful in our analysis.","page_number":227,"box":{"x":69,"y":362,"width":358,"height":11}},{"id":"5539b99d-54e9-4c4a-9c15-5e8e9b42eebb","block_type":"box","text":"11","page_number":227,"box":{"x":429,"y":363,"width":9,"height":4}},{"id":"0977ddcb-d011-4bca-941e-9f3bc871377d","block_type":"box","text":"However, we do not mandate any specific disclosure framework","page_number":227,"box":{"x":444,"y":362,"width":451,"height":11}},{"id":"4956c09f-ffa8-4046-ba80-19ead87add06","block_type":"box","text":"companies should use, and recognize that companies may repor t using different standards, some of which may be","page_number":227,"box":{"x":69,"y":377,"width":821,"height":12}},{"id":"e238df14-3fa9-489a-9ecf-78ba837f73a5","block_type":"box","text":"required by regulation. In such cases, we ask that companies highlight the metrics that are industry- or company","page_number":227,"box":{"x":69,"y":393,"width":806,"height":11}},{"id":"328688b2-f867-49ad-a3e1-17c81bc8ee99","block_type":"box","text":"specific.","page_number":227,"box":{"x":69,"y":407,"width":57,"height":11}},{"id":"34e4b6a2-e343-47c0-92dd-3d4f46746f1a","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":227,"box":{"x":101,"y":430,"width":805,"height":11}},{"id":"f4f425c2-b336-4140-85af-7b0d35e01aa6","block_type":"box","text":"regarding when companies should make sustainability-related disclosures but appreciate it when companies produce","page_number":227,"box":{"x":69,"y":446,"width":833,"height":11}},{"id":"bac3b7b0-d0df-4729-a92c-b5ab75b7b709","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":227,"box":{"x":68,"y":460,"width":830,"height":12}},{"id":"20695529-2428-4e99-94bc-1da8920a8701","block_type":"box","text":"to assess the data and make informed voting decisions.","page_number":227,"box":{"x":68,"y":475,"width":401,"height":12}},{"id":"e8b45e4e-1132-47fe-9460-39e9b70327cd","block_type":"box","text":"Industry initiatives on managing specific operational risks may also provide useful guidance to companies on","page_number":227,"box":{"x":102,"y":498,"width":775,"height":11}},{"id":"773c692d-e531-4a76-b9b8-c6cdb2d53813","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":227,"box":{"x":69,"y":513,"width":804,"height":12}},{"id":"6106213b-3888-408b-bdc2-90dc5a46c7b2","block_type":"box","text":"when companies disclose any relevant global sustainability-related standards adopted, the industry initiatives in","page_number":227,"box":{"x":68,"y":529,"width":799,"height":11}},{"id":"6c82b526-6b3d-4002-a111-19c168e2b8c8","block_type":"box","text":"which they par ticipate, any peer group benchmarking under taken, and any assurance processes to help investors","page_number":227,"box":{"x":68,"y":544,"width":810,"height":11}},{"id":"2fef1fe0-7860-49a8-988d-e82b58414e65","block_type":"box","text":"understand their approach to sustainable and responsible business practices.","page_number":227,"box":{"x":69,"y":559,"width":556,"height":11}},{"id":"c0bc8879-0c02-4cce-86a0-a415172e2955","block_type":"box","text":"10","page_number":227,"box":{"x":69,"y":603,"width":9,"height":5}},{"id":"e446ea6e-3a82-4d77-bfbd-c8589d110d58","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":227,"box":{"x":84,"y":603,"width":822,"height":11}},{"id":"f7819c3a-14e3-446a-b9f8-b8435453ae42","block_type":"box","text":"a company’s business model that have an environmental or social dependency or impact. Examples of environmental","page_number":227,"box":{"x":69,"y":618,"width":835,"height":11}},{"id":"b67807c9-ef94-4570-82ea-5d1cc2cbc016","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":227,"box":{"x":70,"y":633,"width":827,"height":12}},{"id":"72da7703-8798-47de-bd57-0d9bda87d15a","block_type":"box","text":"issues include, but are not limited to, human capital management, impacts on the communities in which a company","page_number":227,"box":{"x":70,"y":649,"width":826,"height":11}},{"id":"9484361a-3b1a-46d5-8567-8954bbfa29ff","block_type":"box","text":"operates, customer loyalty, and relationships with regulators.","page_number":227,"box":{"x":69,"y":664,"width":433,"height":11}},{"id":"bf8ee0f2-8b2e-4ef6-9e4b-2610e453686a","block_type":"box","text":"11","page_number":227,"box":{"x":69,"y":682,"width":9,"height":4}},{"id":"813d7a10-c143-4905-a9f6-dfbbc7bfaab5","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Repor ting Standards","page_number":227,"box":{"x":83,"y":681,"width":744,"height":11}},{"id":"7afd2790-3dcc-464d-b683-c3c56d4d7ccc","block_type":"box","text":"(IFRS) Foundation. The standards build on the Task Force on Climate-related Financial Disclosures (TCFD) framework","page_number":227,"box":{"x":69,"y":696,"width":828,"height":11}},{"id":"d86869a0-7488-4dad-8e83-b7ab64c7d8b3","block_type":"box","text":"and the standards and metrics developed by the Sustainability Accounting Standards Board (SASB), which have both","page_number":227,"box":{"x":69,"y":711,"width":830,"height":12}},{"id":"2e7816e0-0dd1-45bd-93b3-a53bf15a3c04","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":227,"box":{"x":69,"y":726,"width":809,"height":12}},{"id":"f8d341b7-e699-4ba8-8519-8b564baf60b1","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":227,"box":{"x":70,"y":742,"width":778,"height":11}},{"id":"5286bae0-c95c-421a-ae04-e18b215830fc","block_type":"box","text":"Disclosures.” Websites accessed in December 2025.","page_number":227,"box":{"x":70,"y":757,"width":380,"height":9}},{"id":"674e5700-adff-4221-99ae-c7de57522785","block_type":"box","text":"BlackRock Investment Stewardship","page_number":227,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"855a9eb0-ca20-4a9a-9b29-18d2f9d15bd7","block_type":"box","text":"Global Principles | 10","page_number":227,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"a4eb96fe-b38a-4f7f-aafa-dee14149fb5d","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":227,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ef08523e-b6d4-4cd1-b5bd-e682ee4a51d6","block_type":"box","text":"CLIMATE AND NATURE-RELATED RISK","page_number":228,"box":{"x":351,"y":45,"width":277,"height":9}},{"id":"80c8b856-6581-4f5f-bf38-810ab15c4552","block_type":"box","text":"Many companies are assessing how to navigate the low-carbon transition while delivering long-term financial","page_number":228,"box":{"x":102,"y":67,"width":769,"height":12}},{"id":"7a0e4275-7e38-4fd4-85b6-b83151a67cba","block_type":"box","text":"value to investors. For companies facing material climate-related risks, we find it helpful when they publicly disclose,","page_number":228,"box":{"x":68,"y":82,"width":829,"height":12}},{"id":"1e426582-755d-4e72-acc5-47e87125aadc","block_type":"box","text":"consistent with their business model and sector, how they intend to deliver long-term financial per formance through","page_number":228,"box":{"x":69,"y":98,"width":824,"height":11}},{"id":"f5ce5744-2227-444a-aba2-7a5e4d63741a","block_type":"box","text":"the low-carbon transition, including where available, their transition plan.","page_number":228,"box":{"x":68,"y":113,"width":514,"height":11}},{"id":"b6b21dcb-2b81-4d3e-998c-cf82efa69766","block_type":"box","text":"12, 13","page_number":228,"box":{"x":584,"y":113,"width":26,"height":5}},{"id":"e61c2189-da0a-47ce-bd6e-d73f88a604bd","block_type":"box","text":"From company disclosures and","page_number":228,"box":{"x":617,"y":113,"width":218,"height":11}},{"id":"79d0cb5e-0d05-4711-a288-ca04d8c5f9e9","block_type":"box","text":"engagement, we seek to understand the strategies companies have in place to manage material risks to, and","page_number":228,"box":{"x":69,"y":128,"width":782,"height":11}},{"id":"c47f0e3a-f7e8-435d-a517-3f1cbe994a81","block_type":"box","text":"oppor tunities for, their long-term business model associated with a range of climate-related scenarios.","page_number":228,"box":{"x":69,"y":143,"width":729,"height":11}},{"id":"d6568ef0-2ee7-4199-9abd-92f7614bd031","block_type":"box","text":"Recognizing the value of these disclosures, cer tain markets such as the European Union mandate large","page_number":228,"box":{"x":102,"y":166,"width":740,"height":11}},{"id":"0518595f-56ff-4043-b29f-3da6558dbc87","block_type":"box","text":"companies to disclose such climate-related financial information, while in other jurisdictions these disclosures are","page_number":228,"box":{"x":69,"y":181,"width":814,"height":11}},{"id":"97c7742f-e188-4581-a6b5-a63fdb911157","block_type":"box","text":"viewed as best practice in the market.","page_number":228,"box":{"x":68,"y":196,"width":271,"height":11}},{"id":"f7d4bb8b-36fc-4ef0-a6be-328209dea577","block_type":"box","text":"The ISSB standards provide one such framework that can assist investors in assessing company-specific","page_number":228,"box":{"x":101,"y":218,"width":749,"height":12}},{"id":"ede5c468-04dc-46d8-b313-d8831fe198dc","block_type":"box","text":"climate-related risks and oppor tunities, and informing investment decisions. Such disclosures also provide investors","page_number":228,"box":{"x":69,"y":234,"width":831,"height":11}},{"id":"82f7d574-ac17-4872-8aee-2b724643dfe7","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":228,"box":{"x":68,"y":249,"width":809,"height":11}},{"id":"9b61ee0e-8eab-44b9-b139-bd3c88500d04","block_type":"box","text":"managing their own carbon emissions or emissions intensities to the extent financially practicable.","page_number":228,"box":{"x":69,"y":264,"width":702,"height":11}},{"id":"724128de-7952-4b64-ac40-3dc6fe50578e","block_type":"box","text":"The ISSB standards, for example, contemplate disclosures on how companies are setting shor t-, medium- and","page_number":228,"box":{"x":101,"y":286,"width":786,"height":12}},{"id":"a10af875-4e00-45fb-b842-8b9999c9a889","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":228,"box":{"x":70,"y":302,"width":834,"height":11}},{"id":"01b9b62e-d878-4aa9-93d2-71e27542266e","block_type":"box","text":"emissions (GHG) reductions and to demonstrate how their targets are consistent with the long-term financial","page_number":228,"box":{"x":69,"y":317,"width":773,"height":11}},{"id":"ee933884-0a13-430d-b4bf-f5ac1eaf4553","block_type":"box","text":"interests of their investors.","page_number":228,"box":{"x":70,"y":332,"width":190,"height":9}},{"id":"cb2f6f19-3fd6-41c2-bee8-83a8d2425be3","block_type":"box","text":"While we recognize that regulators in some markets are moving to mandate cer tain disclosures, at this stage,","page_number":228,"box":{"x":101,"y":355,"width":784,"height":11}},{"id":"72a6ddf6-b69a-49e0-8f64-5f5df4244085","block_type":"box","text":"we view scope 3 emissions differently from scopes 1 and 2, given methodological complexity, regulatory uncer tainty,","page_number":228,"box":{"x":68,"y":370,"width":832,"height":11}},{"id":"683eea1d-c365-4549-9076-a3c7880328ae","block_type":"box","text":"concerns about double-counting, and lack of direct control by companies. We welcome disclosures and commitments","page_number":228,"box":{"x":69,"y":385,"width":834,"height":11}},{"id":"e2deb6a2-d113-4135-b5fd-f729058347ad","block_type":"box","text":"that companies choose to make regarding material scope 3 emissions and recognize that these are provided on a","page_number":228,"box":{"x":68,"y":400,"width":815,"height":11}},{"id":"9a6380a4-3c1b-4764-ac38-8ace51e0326c","block_type":"box","text":"good-faith basis as methodology develops.","page_number":228,"box":{"x":68,"y":415,"width":303,"height":11}},{"id":"0194e3a3-734f-4222-9fea-d932f9c9023c","block_type":"box","text":"In addition to climate-related risks and oppor tunities, for companies whose strategies, operations or supply","page_number":228,"box":{"x":102,"y":438,"width":766,"height":11}},{"id":"33768412-2514-4774-99bf-20781f68db3c","block_type":"box","text":"chains are materially reliant on natural capital, nature-related risks and oppor tunities may affect their ability to","page_number":228,"box":{"x":69,"y":453,"width":788,"height":11}},{"id":"4570fc51-69d6-4c73-87cb-ce70be280196","block_type":"box","text":"generate long-term financial returns.","page_number":228,"box":{"x":68,"y":468,"width":258,"height":11}},{"id":"7dbaddcf-8d8d-4232-b7e7-28efd5fb342d","block_type":"box","text":"14","page_number":228,"box":{"x":328,"y":468,"width":9,"height":5}},{"id":"44cd0321-f362-4148-96a0-d13b64e43d3b","block_type":"box","text":"For these companies, we rely on disclosures to understand how their","page_number":228,"box":{"x":344,"y":468,"width":490,"height":11}},{"id":"c6dcf89e-fbcf-4567-b528-a200686495db","block_type":"box","text":"strategies consider nature-related impacts and dependencies and to assess how the board oversees these risks.","page_number":228,"box":{"x":69,"y":483,"width":807,"height":11}},{"id":"14431859-63b9-4ba7-9bd4-a9af2830026a","block_type":"box","text":"15","page_number":228,"box":{"x":878,"y":484,"width":9,"height":4}},{"id":"a9535107-0a1f-450b-8096-1cd46d15d554","block_type":"box","text":"COMPANIES’ IMPACT ON THEIR WORKFORCE, SUPPLY CHAINS, AND COMMUNITIES","page_number":228,"box":{"x":179,"y":513,"width":620,"height":11}},{"id":"8aba97d4-7f65-4d65-8d79-138bb37f96df","block_type":"box","text":"Companies determine their key stakeholders based on what is material to their business and long-term financial","page_number":228,"box":{"x":102,"y":536,"width":799,"height":11}},{"id":"e35c5c01-dafa-46bc-b736-a221f4483c69","block_type":"box","text":"per formance. For many companies, key stakeholders include employees, business supply chains, clients and","page_number":228,"box":{"x":70,"y":551,"width":778,"height":11}},{"id":"4e561ad0-1838-4595-a216-2bdc2c04206b","block_type":"box","text":"consumers, regulators, and the communities in which they operate.","page_number":228,"box":{"x":69,"y":566,"width":479,"height":11}},{"id":"65396a95-a57e-41b2-9e17-124ed51121ad","block_type":"box","text":"In our experience, companies that invest in the relationships that are critical to their strategic objectives are","page_number":228,"box":{"x":102,"y":589,"width":770,"height":11}},{"id":"1f9e7bb5-9483-44b4-b8de-be0decd657c0","block_type":"box","text":"more likely to deliver durable, long-term financial per formance. By contrast, we have found that poor relationships","page_number":228,"box":{"x":69,"y":604,"width":810,"height":11}},{"id":"45303874-7b10-4452-b2a0-c92a0828add2","block_type":"box","text":"12","page_number":228,"box":{"x":69,"y":634,"width":9,"height":4}},{"id":"ac4eece6-3768-4492-9b22-353e6ac92d47","block_type":"box","text":"We have observed that more companies are developing such plans, and public policymakers in cer tain markets are","page_number":228,"box":{"x":83,"y":633,"width":823,"height":12}},{"id":"48c97e93-e9dd-4515-b964-d3282b0a2d87","block_type":"box","text":"signaling their intentions to require them or already have requirements in place, such as Australia, Brazil, and the","page_number":228,"box":{"x":69,"y":649,"width":808,"height":11}},{"id":"3dff0da4-c15b-4600-a757-eb5ab6d4186a","block_type":"box","text":"European Union (please see the International Transition Plan Network for information). We view transition plans as a","page_number":228,"box":{"x":70,"y":663,"width":827,"height":11}},{"id":"21cbf847-84cd-4407-a42a-04cf7c2f1782","block_type":"box","text":"method for a company to both internally assess and externally communicate its long-term strategy, ambition,","page_number":228,"box":{"x":69,"y":679,"width":774,"height":11}},{"id":"74822524-cb53-4b5e-88b1-d2c6d095ba63","block_type":"box","text":"objectives, and actions to create financial value through the global transition towards a low-carbon economy. Across","page_number":228,"box":{"x":69,"y":694,"width":825,"height":11}},{"id":"423cf3b7-38d4-4ace-ae19-7e90ff608c06","block_type":"box","text":"the landscape there remains divergence on the objectives of such plans and the details they should contain. While","page_number":228,"box":{"x":68,"y":709,"width":819,"height":11}},{"id":"cc6af49f-23dd-40d6-9d55-2b58dd4c0033","block_type":"box","text":"transition plans can be helpful disclosure, BIS does not make the preparation and production of transition plans a","page_number":228,"box":{"x":68,"y":724,"width":813,"height":11}},{"id":"ea93e818-e869-43fd-b11d-676df10c5d12","block_type":"box","text":"voting issue. BIS may engage companies that have chosen to publish a transition plan to understand their planned","page_number":228,"box":{"x":68,"y":739,"width":819,"height":11}},{"id":"5695f1cf-28a9-4fae-9ce8-8267e5e8ad60","block_type":"box","text":"actions and resource implications. Website accessed in December 2025.","page_number":228,"box":{"x":69,"y":754,"width":522,"height":11}},{"id":"0ed8f1e8-0411-40a2-ba2b-d93245f17e6a","block_type":"box","text":"13","page_number":228,"box":{"x":69,"y":772,"width":9,"height":5}},{"id":"df9f6b06-a7d6-451e-ac5a-16275de7e78c","block_type":"box","text":"For more information, please see our commentary “Climate-related risks and a low-carbon transition,” December","page_number":228,"box":{"x":84,"y":772,"width":804,"height":11}},{"id":"56701f04-4e15-4d39-bb82-809968544808","block_type":"box","text":"2025.","page_number":228,"box":{"x":69,"y":787,"width":42,"height":9}},{"id":"8be1a3f0-2dbf-4f79-8460-56b41e7a1b63","block_type":"box","text":"14","page_number":228,"box":{"x":69,"y":805,"width":9,"height":4}},{"id":"1dae9888-2f12-4dff-9493-025e530a9716","block_type":"box","text":"For more information, please see our commentary “Our approach to engagement on natural capital,” December","page_number":228,"box":{"x":84,"y":805,"width":796,"height":11}},{"id":"0bf780e2-2471-4bcb-88c8-cb1a12a5f143","block_type":"box","text":"2025.","page_number":228,"box":{"x":69,"y":820,"width":42,"height":9}},{"id":"62e71697-3fc7-4ed7-81e1-6bfe8653aac6","block_type":"box","text":"15","page_number":228,"box":{"x":69,"y":838,"width":9,"height":4}},{"id":"947449e9-33d7-40bc-ab49-371f6e34b76e","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":228,"box":{"x":84,"y":837,"width":797,"height":12}},{"id":"f8553000-1d8d-49d3-a89e-a45c1db63258","block_type":"box","text":"company’s natural capital dependencies and impacts would aid investors’ understanding. The recommendations of","page_number":228,"box":{"x":69,"y":852,"width":820,"height":12}},{"id":"0888066e-7b9e-482c-8ddf-9310827dfc4d","block_type":"box","text":"the Taskforce on Nature-related Financial Disclosures (TNFD) may prove useful to some companies. We recognize that","page_number":228,"box":{"x":68,"y":868,"width":842,"height":11}},{"id":"5ae8b8b8-5a78-49c0-82ee-a34385932a17","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":228,"box":{"x":69,"y":883,"width":820,"height":11}},{"id":"d47e3998-4cea-414f-9db9-81bf4530527f","block_type":"box","text":"other private sector standards. TNFD-aligned repor ting is not a voting issue. Website accessed in December 2025.","page_number":228,"box":{"x":69,"y":898,"width":817,"height":11}},{"id":"3c204793-eddc-4b67-a3e1-95ccc0f37a40","block_type":"box","text":"BlackRock Investment Stewardship","page_number":228,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"5df763e1-2527-479a-bce5-8ff01f40a43d","block_type":"box","text":"Global Principles | 11","page_number":228,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"f239aa8a-33e3-4399-bbca-5189f1694d7c","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":228,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"12d13e29-01f0-44c0-8764-103f56113344","block_type":"box","text":"may create adverse impacts that could expose companies to legal, regulatory, operational, and reputational risks.","page_number":229,"box":{"x":69,"y":45,"width":811,"height":11}},{"id":"9044242d-69b4-4220-91db-f3220c09f91c","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":229,"box":{"x":68,"y":60,"width":764,"height":11}},{"id":"7ad1ba04-b840-4fb1-b8cb-40c919743674","block_type":"box","text":"16","page_number":229,"box":{"x":834,"y":60,"width":9,"height":5}},{"id":"db46b1fe-57f0-4b66-9ea4-a8b5bfae632e","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":229,"box":{"x":101,"y":82,"width":783,"height":12}},{"id":"f1f4f297-4815-4423-82b5-b2dbbd60541c","block_type":"box","text":"identified their key stakeholders and considered their interests in business decision-making. In addition to","page_number":229,"box":{"x":70,"y":98,"width":755,"height":11}},{"id":"31e60625-9b05-45ae-9bc4-d4c688c32d35","block_type":"box","text":"understanding broader stakeholder relationships, BIS finds it helpful when companies discuss how they consider the","page_number":229,"box":{"x":69,"y":113,"width":831,"height":11}},{"id":"99e5b8d6-26cd-4c26-8333-460ad4a0d41c","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":229,"box":{"x":69,"y":128,"width":809,"height":11}},{"id":"46623429-f87d-47f1-b1dd-f25b85c45cd8","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":229,"box":{"x":69,"y":143,"width":821,"height":11}},{"id":"fac3f6a7-cc45-437f-99ef-41d72fdc7933","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":229,"box":{"x":69,"y":158,"width":775,"height":11}},{"id":"4606d3d2-3e59-47c9-bb4b-c79051624797","block_type":"box","text":"company’s policies or practices, which are the responsibility of management and the board.","page_number":229,"box":{"x":69,"y":173,"width":653,"height":11}},{"id":"47db8b2a-bd6a-4fac-9784-7931aaa9dc89","block_type":"box","text":"In addition, we find it helpful when companies disclose their approach to addressing material adverse impacts","page_number":229,"box":{"x":102,"y":196,"width":784,"height":11}},{"id":"58dcd48a-c560-4457-a99a-28971b45e6d0","block_type":"box","text":"that could arise from their business practices and affect critical relationships with their stakeholders. We encourage","page_number":229,"box":{"x":68,"y":211,"width":829,"height":11}},{"id":"50115288-0904-461c-9feb-e487e383ec97","block_type":"box","text":"companies to implement, to the extent appropriate, monitoring processes (often referred to as due diligence) to","page_number":229,"box":{"x":69,"y":226,"width":797,"height":11}},{"id":"97246a56-92bd-4885-aedd-623904c51f5e","block_type":"box","text":"identify and mitigate potential adverse impacts and grievance mechanisms to remediate any actual adverse material","page_number":229,"box":{"x":70,"y":241,"width":828,"height":11}},{"id":"ec23cad6-2ce8-4235-b88b-1ab4ec54eb9f","block_type":"box","text":"impacts.","page_number":229,"box":{"x":70,"y":257,"width":58,"height":10}},{"id":"f7ab4e44-093e-4d27-afd7-387bd7344ade","block_type":"box","text":"We look to boards to oversee management’s approach to addressing material risks related to key stakeholders","page_number":229,"box":{"x":101,"y":279,"width":794,"height":11}},{"id":"989b9a68-028c-493e-934c-7ccd10f1695c","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":229,"box":{"x":69,"y":294,"width":831,"height":11}},{"id":"a2436167-ad77-4b2f-9abf-a055744b9ad1","block_type":"box","text":"shareholder proposal when, in our assessment, the board is not acting in shareholders’ long-term financial interests.","page_number":229,"box":{"x":69,"y":309,"width":834,"height":11}},{"id":"00064a42-3008-44f8-a0cd-ae629f88471a","block_type":"box","text":"BLACKROCK’S OVERSIGHT OF ITS INVESTMENT STEWARDSHIP ACTIVITIES","page_number":229,"box":{"x":213,"y":340,"width":553,"height":8}},{"id":"90589e52-49bb-4819-90f2-1790ff86af9a","block_type":"box","text":"BIS’ governance structure suppor ts oversight and accountability of stewardship-related activities on behalf of","page_number":229,"box":{"x":102,"y":362,"width":778,"height":11}},{"id":"87f8f864-d317-4165-96e5-87d7001cea93","block_type":"box","text":"clients at the global and regional level.","page_number":229,"box":{"x":69,"y":377,"width":274,"height":12}},{"id":"2088ca93-b579-43fd-9261-1d88d72458e2","block_type":"box","text":"At the top of this governance structure, the risk-focused BIS Global Oversight Committee (the Committee)","page_number":229,"box":{"x":101,"y":400,"width":751,"height":11}},{"id":"7c35a946-2193-4d8f-a796-d1d87a85c44d","block_type":"box","text":"suppor ts BIS’ regulatory responsibilities in relation to proxy voting, including adherence to policies and procedures as","page_number":229,"box":{"x":69,"y":415,"width":840,"height":11}},{"id":"8414e8ba-d3e3-4a19-ba6c-c0e822d43c6f","block_type":"box","text":"well as market-level stewardship requirements. The Committee reviews and approves amendments to the Global","page_number":229,"box":{"x":68,"y":430,"width":802,"height":11}},{"id":"e1714c28-8bd3-488d-b72d-683bfeaf86ec","block_type":"box","text":"Principles and regional voting guidelines. The Committee also reviews periodic repor ts regarding the votes cast by","page_number":229,"box":{"x":69,"y":445,"width":813,"height":12}},{"id":"6d89c820-214c-4c4a-9a25-f90cd41bc2f1","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":229,"box":{"x":70,"y":460,"width":835,"height":12}},{"id":"93662593-b76d-4907-afbf-86e7d58bd8ee","block_type":"box","text":"considerations. The Committee is chaired by the Global Heads of the Investment Stewardship function and its","page_number":229,"box":{"x":69,"y":475,"width":783,"height":12}},{"id":"fe5f8215-cfb1-439a-8ed8-ce0d3c0b4b11","block_type":"box","text":"members include senior BlackRock executives with legal, risk, and other experience relevant to team oversight who","page_number":229,"box":{"x":69,"y":491,"width":820,"height":11}},{"id":"c48fb252-bb23-48b9-ae9d-b0575850323e","block_type":"box","text":"are independent from the investment stewardship function.","page_number":229,"box":{"x":69,"y":506,"width":421,"height":11}},{"id":"984d6853-bda1-4e83-bc58-91bdf188d55d","block_type":"box","text":"The Global Heads have primary oversight of BIS’ activities globally, including voting in accordance with the Global","page_number":229,"box":{"x":101,"y":528,"width":804,"height":12}},{"id":"b7f23f05-2962-4e9c-b862-65d75b48441c","block_type":"box","text":"Principles and regional voting guidelines. At the regional level, three regional Heads for the Americas, APAC, and","page_number":229,"box":{"x":69,"y":543,"width":798,"height":12}},{"id":"7b210aa1-2bdd-4764-8037-be6df5c5c622","block_type":"box","text":"EMEA oversee BIS’ activities for their specific markets.","page_number":229,"box":{"x":70,"y":559,"width":389,"height":11}},{"id":"69057976-8841-4afc-a04a-f0c54f5a4c58","block_type":"box","text":"VOTE EXECUTION","page_number":229,"box":{"x":424,"y":589,"width":129,"height":9}},{"id":"5cfe1812-138b-4be2-a80a-ea3c585cee14","block_type":"box","text":"BIS votes proxies on behalf of index equity funds and accounts when authorized by our clients. We have","page_number":229,"box":{"x":102,"y":612,"width":739,"height":11}},{"id":"3282378b-9dbf-484f-9bf0-dac081e2779b","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":229,"box":{"x":70,"y":627,"width":822,"height":11}},{"id":"973ce89a-4515-4f48-950b-6c2518f54f45","block_type":"box","text":"from voting when logistical issues arise (see below). The BIS Benchmark Policies – and the vote decisions made","page_number":229,"box":{"x":68,"y":642,"width":801,"height":11}},{"id":"6926af33-1654-4653-8df8-18bd4288a8e3","block_type":"box","text":"consistent with those policies – reflect our reasonable and independent judgment and are made without regard to the","page_number":229,"box":{"x":69,"y":657,"width":838,"height":11}},{"id":"b5ad3e90-ac41-4a73-8d3d-0869cefd327b","block_type":"box","text":"relationship between the issuer of the proxy (or any shareholder proponent or dissident shareholder) and the Fund,","page_number":229,"box":{"x":69,"y":672,"width":817,"height":11}},{"id":"7b0f3f6f-e633-41ef-beb1-0c4499ebe599","block_type":"box","text":"the Fund’s affiliates (if any), BlackRock or BlackRock’s affiliates, or BlackRock employees (see “Conflicts","page_number":229,"box":{"x":68,"y":687,"width":751,"height":11}},{"id":"41c415ce-3551-411e-991c-db71b8a76697","block_type":"box","text":"management policies and procedures,” below).","page_number":229,"box":{"x":69,"y":703,"width":334,"height":11}},{"id":"b942fc4c-b0e3-499a-a065-82457514b4d6","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":229,"box":{"x":102,"y":725,"width":806,"height":11}},{"id":"9ef27517-d624-4c09-a990-2219a5c8ecb4","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":229,"box":{"x":69,"y":740,"width":801,"height":11}},{"id":"667c35f1-6a8b-47b8-977c-333eea57508f","block_type":"box","text":"shareholder meetings; 2) restrictions on a foreigner’s ability to exercise votes; 3) requirements to vote proxies in","page_number":229,"box":{"x":69,"y":755,"width":805,"height":11}},{"id":"1d8a2418-a149-4301-8904-333531960618","block_type":"box","text":"person; 4) “share-blocking” (requirements that investors who exercise their voting rights surrender the right to","page_number":229,"box":{"x":70,"y":771,"width":783,"height":11}},{"id":"7f155a26-cff5-4551-88a7-b640d7df3156","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":229,"box":{"x":69,"y":785,"width":811,"height":12}},{"id":"1dd0750c-6964-4fcd-8919-329a9b0cdc8f","block_type":"box","text":"has occurred); 5) potential difficulties in translating the proxy; 6) regulatory constraints; and 7) requirements to","page_number":229,"box":{"x":69,"y":801,"width":795,"height":11}},{"id":"6da5ad7d-6a18-462a-86ca-8acbe646e9f1","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":229,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"68d8d7f8-d57f-439d-b33f-f14df911358f","block_type":"box","text":"the exercise of voting rights such as share-blocking or overly burdensome administrative requirements.","page_number":229,"box":{"x":68,"y":831,"width":732,"height":11}},{"id":"0d411279-8ac7-4705-9027-0f2eecb49abb","block_type":"box","text":"16","page_number":229,"box":{"x":69,"y":860,"width":9,"height":5}},{"id":"14acd448-4ffb-4bab-865b-bc59cae4696e","block_type":"box","text":"For more information, please see our commentary “Our approach to engagement on human capital management,”","page_number":229,"box":{"x":84,"y":860,"width":814,"height":11}},{"id":"86a17cd9-2551-482f-99fd-14eabe8a8a9d","block_type":"box","text":"December 2025.","page_number":229,"box":{"x":70,"y":875,"width":118,"height":9}},{"id":"2cfe7569-806b-4fc3-bb86-f7b6bd8dfbb7","block_type":"box","text":"BlackRock Investment Stewardship","page_number":229,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"4d43ec8b-0f1e-4fe3-93da-ec3f9244ab9a","block_type":"box","text":"Global Principles | 12","page_number":229,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"603fd404-b6c7-4185-bf17-2ebe3ef2020e","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":229,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6f8a4846-ff5f-4969-9985-46b52581685f","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":230,"box":{"x":102,"y":45,"width":807,"height":11}},{"id":"b465282e-a8ca-402b-a38a-0a66831d4099","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":230,"box":{"x":70,"y":60,"width":830,"height":11}},{"id":"b335de03-4034-4122-82ed-a1a7de72cc16","block_type":"box","text":"not limited to oppor tunity costs associated with share-blocking constraints) associated with exercising a vote are","page_number":230,"box":{"x":69,"y":75,"width":805,"height":11}},{"id":"36270f39-1981-47a2-b626-6e2d7e5080dc","block_type":"box","text":"expected to outweigh the benefit the client would derive by voting on the proposal.","page_number":230,"box":{"x":69,"y":90,"width":585,"height":11}},{"id":"bbb70588-d8e7-4bc3-ba0c-a2165bd7827f","block_type":"box","text":"CONFLICTS MANAGEMENT POLICIES AND PROCEDURES","page_number":230,"box":{"x":281,"y":120,"width":416,"height":9}},{"id":"87985ca5-bd4b-48e8-a4e7-9e821c72ef60","block_type":"box","text":"BIS is a dedicated function whose responsibilities are separate from BlackRock’s sales, business par tnership or","page_number":230,"box":{"x":102,"y":143,"width":804,"height":11}},{"id":"c1cb0913-b66f-4e6a-94b1-729168d6ceb9","block_type":"box","text":"enterprise-level vendor management activities.","page_number":230,"box":{"x":69,"y":158,"width":329,"height":11}},{"id":"16ca2e47-3d36-4847-bb63-f2c2db746454","block_type":"box","text":"BlackRock maintains policies and procedures that are designed to prevent undue influence on BIS’ proxy voting","page_number":230,"box":{"x":102,"y":181,"width":794,"height":11}},{"id":"e06411ea-f8c1-4b41-b5c4-9b2e03fe4cd3","block_type":"box","text":"activity. Such influence might stem from any relationship between the investee company (or any shareholder","page_number":230,"box":{"x":69,"y":196,"width":771,"height":11}},{"id":"3d6b8163-91be-4205-ae3e-9ae98d56ff9d","block_type":"box","text":"proponent or dissident shareholder) and BlackRock, BlackRock’s affiliates, a Fund or a Fund’s affiliates, or","page_number":230,"box":{"x":70,"y":211,"width":763,"height":11}},{"id":"8879ae3b-200d-44f5-91ca-3d5baca8d2a4","block_type":"box","text":"BlackRock employees.","page_number":230,"box":{"x":70,"y":226,"width":157,"height":11}},{"id":"4117c13a-6a92-47aa-b384-59509ac91da1","block_type":"box","text":"For information on how BIS manages conflicts of interest, please see our disclosure.","page_number":230,"box":{"x":102,"y":249,"width":602,"height":11}},{"id":"79d49014-2bb8-44ca-91ae-f16e1c191987","block_type":"box","text":"SECURITIES LENDING","page_number":230,"box":{"x":409,"y":279,"width":159,"height":9}},{"id":"1605b626-e6fd-4c00-a621-5bc91eb0c00e","block_type":"box","text":"When authorized, BlackRock acts as a securities lending agent on behalf of its clients. Lending securities","page_number":230,"box":{"x":101,"y":302,"width":751,"height":11}},{"id":"51ffaf76-6435-4182-b3b1-5efc614c072e","block_type":"box","text":"enables BlackRock to increase the returns in clients’ por tfolios, and BlackRock’s lending agreements allow it to","page_number":230,"box":{"x":69,"y":317,"width":797,"height":11}},{"id":"94e439f5-208a-4078-b7c1-c63b489b485e","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":230,"box":{"x":69,"y":332,"width":817,"height":11}},{"id":"dd93fdab-9970-4628-a8f6-a937b41c7233","block_type":"box","text":"out on loan. Entitlements associated with the lent securities (dividends, coupons, etc.), while on loan are paid back","page_number":230,"box":{"x":69,"y":347,"width":823,"height":11}},{"id":"76256e17-7f9b-452b-a2b3-7dde7e2ce255","block_type":"box","text":"to the lender of the security as stipulated in industry standard legal agreements.","page_number":230,"box":{"x":68,"y":362,"width":575,"height":11}},{"id":"5db370c7-e853-49b7-9a1c-fc55b0b11613","block_type":"box","text":"With regard to the relationship between securities lending and proxy voting, BlackRock cannot vote shares on","page_number":230,"box":{"x":101,"y":385,"width":779,"height":11}},{"id":"76969b69-e103-45b8-acd7-238a3a87dc95","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":230,"box":{"x":70,"y":400,"width":827,"height":11}},{"id":"b8ea195d-3961-415c-bcdb-bb9462097e95","block_type":"box","text":"in helping them achieve their investment goals. 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All other trademarks are those of their respective owners.","page_number":232,"box":{"x":70,"y":898,"width":624,"height":11}},{"id":"ec25f91c-a591-499a-867e-4f04da5a8999","block_type":"box","text":"BlackRock Investment Stewardship","page_number":232,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"a5d38fdc-ea35-4f39-b932-a7f0188483c6","block_type":"box","text":"Global Principles | 15","page_number":232,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"6976f746-f39a-429c-bb19-2cf4d3cd9aca","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":232,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9c2b33b8-a111-408b-8c5e-105975239503","block_type":"box","text":"BlackRock Investment Stewardship","page_number":233,"box":{"x":359,"y":45,"width":260,"height":11}},{"id":"704a680a-f000-41ce-8bb3-1665c180b62a","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines","page_number":233,"box":{"x":297,"y":67,"width":384,"height":11}},{"id":"34ba8ed3-a621-4ae7-a00f-37ce8b893d6d","block_type":"box","text":"Effective as of January 2026","page_number":233,"box":{"x":385,"y":90,"width":208,"height":11}},{"id":"b76d90bf-c700-45a1-9ad7-b53aee5415a8","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":233,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e63fad84-841b-48d4-9aef-1d340ed56307","block_type":"box","text":"Contents","page_number":234,"box":{"x":456,"y":45,"width":66,"height":9}},{"id":"40d4ea96-283f-4b5b-a80e-a99fbecf75a0","block_type":"box","text":"Introduction to BlackRock Investment Stewardship 3","page_number":234,"box":{"x":69,"y":80,"width":840,"height":11}},{"id":"c1449c02-847f-4793-8459-0504d1c3b520","block_type":"box","text":"Stewardship for clients with investment objectives relating to the low-carbon transition 3","page_number":234,"box":{"x":68,"y":96,"width":841,"height":11}},{"id":"83ad06c5-ff14-4974-ae8f-e78b5b0b0e57","block_type":"box","text":"The Climate and Decarbonization Stewardship Guidelines 3","page_number":234,"box":{"x":68,"y":113,"width":841,"height":11}},{"id":"ae8cd210-f787-498e-b609-7eceb466ff69","block_type":"box","text":"Understanding the investment implications of the transition to a low-carbon economy 4","page_number":234,"box":{"x":69,"y":129,"width":840,"height":11}},{"id":"85a4d76a-3115-4fc0-96be-004077646297","block_type":"box","text":"The Guidelines’ design principles","page_number":234,"box":{"x":68,"y":146,"width":240,"height":11}},{"id":"1b8c8d41-8a7f-4b21-968d-9433f439fe9d","block_type":"box","text":"4","page_number":234,"box":{"x":900,"y":146,"width":9,"height":8}},{"id":"4f4c210a-5685-4b48-994d-edb09fa38a4a","block_type":"box","text":"Voting approach under the Guidelines","page_number":234,"box":{"x":68,"y":162,"width":273,"height":11}},{"id":"6b45ea73-4193-4b65-832b-bfb83ca6a5ab","block_type":"box","text":"5","page_number":234,"box":{"x":901,"y":162,"width":8,"height":9}},{"id":"434519fd-7c23-4dee-b2a6-aa8b1a5fdfe7","block_type":"box","text":"Related matters","page_number":234,"box":{"x":69,"y":178,"width":117,"height":9}},{"id":"9e5f28c1-dae9-4b53-9038-fea41a6f4513","block_type":"box","text":"8","page_number":234,"box":{"x":900,"y":178,"width":9,"height":9}},{"id":"0e68bd2c-ca9b-4e0d-bff6-e42f86cb8b42","block_type":"box","text":"Appendix 1","page_number":234,"box":{"x":68,"y":195,"width":82,"height":11}},{"id":"3602764f-c3e7-431f-b13b-365631543e30","block_type":"box","text":"10","page_number":234,"box":{"x":891,"y":195,"width":18,"height":9}},{"id":"931a2bc6-0f1a-4dc3-b931-b8135a86355f","block_type":"box","text":"Appendix 2","page_number":234,"box":{"x":68,"y":211,"width":82,"height":11}},{"id":"9bb92697-23b5-46b3-94c0-54e4a92caab6","block_type":"box","text":"11","page_number":234,"box":{"x":891,"y":211,"width":18,"height":9}},{"id":"93995cf6-593e-487e-beb2-da61fb00e576","block_type":"box","text":"BlackRock Investment Stewardship","page_number":234,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"fd34ed05-0d02-498d-ae84-174600bd2fba","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 2","page_number":234,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"40ae4fff-a77a-4384-a778-e46f81f5aec1","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":234,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"26d142e7-905c-45ea-85f7-80f0dff232de","block_type":"box","text":"INTRODUCTION TO BLACKROCK INVESTMENT STEWARDSHIP","page_number":235,"box":{"x":264,"y":45,"width":450,"height":9}},{"id":"25bc4bea-8743-4970-bc60-08e44473c59f","block_type":"box","text":"At BlackRock, investment stewardship serves as a link between our clients and the companies they invest in and","page_number":235,"box":{"x":101,"y":68,"width":807,"height":10}},{"id":"6935474f-3b79-4a8b-b3c0-419f658dde0c","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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Under the Guidelines, the dedicated team","page_number":237,"box":{"x":102,"y":176,"width":805,"height":11}},{"id":"1b4ebada-95a9-4b17-8976-be38bbaa60d1","block_type":"box","text":"makes decisions on how to engage companies and vote proxies independently, based on its professional","page_number":237,"box":{"x":102,"y":191,"width":748,"height":11}},{"id":"8b0574d1-eb8f-46bd-8c26-1d866be88502","block_type":"box","text":"judgment of the priorities and outcomes most aligned with par ticipating clients’ investment objectives.","page_number":237,"box":{"x":100,"y":206,"width":730,"height":11}},{"id":"6059e808-d138-4746-bd81-0c7dee882660","block_type":"box","text":"Voting approach under the Guidelines","page_number":237,"box":{"x":68,"y":236,"width":273,"height":11}},{"id":"5b7003de-8288-4508-8fcc-0fbb2dd173be","block_type":"box","text":"12","page_number":237,"box":{"x":342,"y":237,"width":9,"height":4}},{"id":"6465182c-cb29-4fdc-86bb-f1b48b85acba","block_type":"box","text":"When evaluating each voting item across management or shareholder proposals, the dedicated team applies a","page_number":237,"box":{"x":101,"y":259,"width":791,"height":11}},{"id":"6a610acc-3910-4e37-88dd-ac27eb4b8878","block_type":"box","text":"case-by-case approach that reflects the uneven pace of the low-carbon transition across sectors and markets, and","page_number":237,"box":{"x":69,"y":274,"width":813,"height":11}},{"id":"25e1cf18-1168-4e54-a659-be481b3fab66","block_type":"box","text":"acknowledges the distinction between what company management can influence and what lies beyond its control. As","page_number":237,"box":{"x":69,"y":289,"width":833,"height":11}},{"id":"5bfaeb23-0457-4599-b8a0-1c730825eda5","block_type":"box","text":"a result, voting decisions — on behalf of in-scope funds and SMAs — on similar proposals included on different","page_number":237,"box":{"x":69,"y":304,"width":799,"height":11}},{"id":"d5887b8a-2ea6-42a4-b83c-002fef77eaef","block_type":"box","text":"companies’ shareholder meeting agendas may vary depending on company, sector, or market-specific circumstances.","page_number":237,"box":{"x":69,"y":319,"width":837,"height":12}},{"id":"f68c8fb8-9c92-464a-9a7c-bcac6a39f28d","block_type":"box","text":"Consistent with the investment objective of each fund or account that has selected these Guidelines, the","page_number":237,"box":{"x":102,"y":342,"width":748,"height":11}},{"id":"5ee78ab4-a2c1-4f3e-a87e-f7c19eade1a6","block_type":"box","text":"dedicated team will look to the companies to demonstrate the following:","page_number":237,"box":{"x":69,"y":357,"width":513,"height":11}},{"id":"6b00d054-2dd9-4f09-b8f1-9bf908c0be95","block_type":"box","text":"Corporate Disclosures","page_number":237,"box":{"x":69,"y":387,"width":160,"height":11}},{"id":"740d4aa2-aea9-4fc5-bfb7-cb9e418ef93a","block_type":"box","text":"13","page_number":237,"box":{"x":230,"y":388,"width":9,"height":4}},{"id":"470bf6a3-d4e4-49ca-999c-3f2c06a992e9","block_type":"box","text":"In the context of these Guidelines, the dedicated team looks for companies to provide sufficient disclosure to","page_number":237,"box":{"x":102,"y":410,"width":781,"height":11}},{"id":"56c7e0fc-52da-454d-93c6-b996f95b0e3a","block_type":"box","text":"assess whether the company’s strategy is aligned with the low-carbon transition. As a general point, the team looks","page_number":237,"box":{"x":69,"y":425,"width":825,"height":11}},{"id":"3a236e3e-11a5-4331-920f-b9cfa8f1a2f2","block_type":"box","text":"to companies that are impor tant to the transition to a low-carbon economy to explain the strategy and governance","page_number":237,"box":{"x":68,"y":440,"width":812,"height":12}},{"id":"b260ce75-1e3c-4ba8-9c67-fce28eae6935","block_type":"box","text":"frameworks that they have determined most appropriate, which may include:","page_number":237,"box":{"x":68,"y":455,"width":545,"height":11}},{"id":"c296f759-0c8c-4c01-ad17-e97cb3d31f34","block_type":"box","text":"(1) a low-carbon transition strategy to demonstrate their alignment with the ambition to limit average global","page_number":237,"box":{"x":69,"y":476,"width":769,"height":11}},{"id":"42362337-3dca-454b-b467-6e336be9bf2a","block_type":"box","text":"temperature rise to 1.5°C above pre-industrial levels. This would typically include a long-term strategy to achieve","page_number":237,"box":{"x":101,"y":491,"width":800,"height":11}},{"id":"4e9646fe-c974-4231-97bf-c45f4134ba4d","block_type":"box","text":"net-zero GHG emissions by 2050, with appropriate near- and medium-term milestones to assess their progress.","page_number":237,"box":{"x":102,"y":506,"width":796,"height":11}},{"id":"8a35c47f-bda5-40aa-8153-e54129df33b1","block_type":"box","text":"(2) low-carbon transition-related repor ting. Standardized disclosure of sustainability-related data suppor ts investors","page_number":237,"box":{"x":69,"y":526,"width":828,"height":11}},{"id":"64cf0f4f-ba61-4c52-aa85-8cd9238cad48","block_type":"box","text":"in making informed decisions. The International Sustainability Standards Board (ISSB) standards, IFRS S1 and","page_number":237,"box":{"x":102,"y":541,"width":787,"height":11}},{"id":"122d5e73-7904-415c-a832-50b255fa5b31","block_type":"box","text":"S2, represent one such approach to standardization that the dedicated team finds useful in its analysis.","page_number":237,"box":{"x":102,"y":556,"width":741,"height":11}},{"id":"6c235873-1ee7-40b9-91b1-e0c95ae93f37","block_type":"box","text":"14, 15","page_number":237,"box":{"x":845,"y":557,"width":25,"height":5}},{"id":"c9d93f9e-78ab-4b27-80cc-2a78978f4660","block_type":"box","text":"IFRS","page_number":237,"box":{"x":877,"y":556,"width":30,"height":9}},{"id":"a7df5d0e-968e-49bd-b9ce-7cccbbf2e97d","block_type":"box","text":"S1 addresses the general requirements of sustainability repor ting and IFRS S2 sets out the disclosures that","page_number":237,"box":{"x":102,"y":571,"width":774,"height":12}},{"id":"b79f8e37-676d-4a16-af1f-74a2151f1dfe","block_type":"box","text":"provide investors with decision-useful information about a company’s most significant climate- and low-carbon","page_number":237,"box":{"x":102,"y":586,"width":781,"height":12}},{"id":"e4e8ddfb-0eae-4fe6-a14e-8fa539751343","block_type":"box","text":"transition-related risks and oppor tunities. This includes receiving independent, third-par ty assurances, as audit","page_number":237,"box":{"x":101,"y":602,"width":792,"height":11}},{"id":"ba278447-4ed3-4bb5-bb6e-dc740e27cd0b","block_type":"box","text":"and assurance standards are developed.","page_number":237,"box":{"x":102,"y":617,"width":290,"height":11}},{"id":"2ce76b8d-05a7-47b0-a5b8-f4c839eaac17","block_type":"box","text":"12","page_number":237,"box":{"x":69,"y":646,"width":9,"height":5}},{"id":"e32815c0-1973-4785-b1b0-45d7c6f5ecc6","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":237,"box":{"x":83,"y":646,"width":825,"height":11}},{"id":"6f1745cf-72fe-488e-a500-404deb93f3ff","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":237,"box":{"x":69,"y":661,"width":833,"height":11}},{"id":"7724dab6-39d9-4440-8b07-70b14a8785c3","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":237,"box":{"x":68,"y":676,"width":830,"height":11}},{"id":"08762d7e-c25c-4fc2-bc87-9735fa4b6cab","block_type":"box","text":"company, as well as individual ballot items at shareholder meetings.","page_number":237,"box":{"x":69,"y":691,"width":486,"height":11}},{"id":"00411f1d-1427-468c-98f6-a07fc2b7d460","block_type":"box","text":"13","page_number":237,"box":{"x":69,"y":709,"width":9,"height":5}},{"id":"b9133750-bedd-497a-9955-82caf474a488","block_type":"box","text":"Given data and measurement limitations, companies may need to provide estimated GHG emissions where","page_number":237,"box":{"x":84,"y":709,"width":764,"height":11}},{"id":"781053a4-da8b-4448-a10d-18e822c2cf2e","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":237,"box":{"x":69,"y":724,"width":834,"height":11}},{"id":"52d4ce3f-d642-4a82-b6dd-3e9a24aee76a","block_type":"box","text":"business models through the low-carbon transition may require forward-looking statements.","page_number":237,"box":{"x":69,"y":739,"width":651,"height":11}},{"id":"0077974f-df6c-4271-a57c-682cde761cf4","block_type":"box","text":"14","page_number":237,"box":{"x":69,"y":757,"width":9,"height":4}},{"id":"4e2708a7-1d55-40f0-a6a4-8d160bdc1441","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Repor ting Standards","page_number":237,"box":{"x":83,"y":757,"width":744,"height":11}},{"id":"f06b104d-372e-49d8-b1b2-a5b1ad075589","block_type":"box","text":"(IFRS) Foundation. The standards build on the Task Force on Climate-related Financial Disclosures (TCFD) framework","page_number":237,"box":{"x":69,"y":772,"width":828,"height":11}},{"id":"5485095f-bfcb-4637-9b64-c5024fd1f670","block_type":"box","text":"and the standards and metrics developed by the Sustainability Accounting Standards Board (SASB), which have both","page_number":237,"box":{"x":69,"y":787,"width":830,"height":11}},{"id":"948ae5eb-21c9-4e3d-8ae8-af2fc58c7163","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":237,"box":{"x":69,"y":802,"width":809,"height":11}},{"id":"64d8c5ac-1656-4dd7-9e5a-d1b56c65b096","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":237,"box":{"x":70,"y":817,"width":778,"height":11}},{"id":"6bc225fe-6602-4131-8514-6931e95ff9da","block_type":"box","text":"Disclosures.” Websites accessed in December 2025.","page_number":237,"box":{"x":70,"y":832,"width":380,"height":9}},{"id":"ffbb1bed-a9d5-430c-8e27-9ba472bc8eef","block_type":"box","text":"15","page_number":237,"box":{"x":69,"y":850,"width":9,"height":5}},{"id":"59e6ef54-24e7-4f79-8ccc-27058e67f9c2","block_type":"box","text":"A number of jurisdictions are consulting on adopting the standards issued to date or have already committed to","page_number":237,"box":{"x":83,"y":850,"width":795,"height":11}},{"id":"a2779207-b658-4224-aff5-f155ff074d59","block_type":"box","text":"doing so. BIS does not mandate any specific disclosure framework companies should use, and recognize that some","page_number":237,"box":{"x":69,"y":865,"width":826,"height":11}},{"id":"19a47640-3561-4938-8068-d9bab8779a3e","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":237,"box":{"x":69,"y":880,"width":811,"height":11}},{"id":"ca34c1b7-7097-492e-b32c-9f9f971fc90e","block_type":"box","text":"ask that companies highlight the metrics that are industry- or company-specific. We also recognize that companies","page_number":237,"box":{"x":69,"y":895,"width":816,"height":12}},{"id":"8f3651a4-8eed-4c91-b526-3cc82f2d19e5","block_type":"box","text":"may be phasing in repor ting over several years. We do not prescribe timelines regarding when companies should","page_number":237,"box":{"x":69,"y":911,"width":803,"height":11}},{"id":"3e3bc0bc-22f6-410a-97f7-5e715e5b1d1d","block_type":"box","text":"BlackRock Investment Stewardship","page_number":237,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"688b8ac3-f506-4e2f-b955-8cf55f162f42","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 5","page_number":237,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"63922a84-15c1-491a-90e8-6f7d39a0f377","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":237,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"cd8bafc2-0d04-44a5-8948-cb42df3c9e53","block_type":"box","text":"(3) scope 1 and scope 2, and most significant scope 3 GHG emissions","page_number":238,"box":{"x":69,"y":45,"width":513,"height":11}},{"id":"61ad110f-cc73-49a6-bc59-9b1fdeac185c","block_type":"box","text":"16, 17","page_number":238,"box":{"x":583,"y":45,"width":26,"height":5}},{"id":"fb01c983-6ed2-4039-8c49-238015f05790","block_type":"box","text":"In addition, the dedicated team looks to","page_number":238,"box":{"x":615,"y":45,"width":283,"height":10}},{"id":"b843d18e-fae5-47af-a4df-38e4ade8a224","block_type":"box","text":"companies to disclose their emissions reduction targets for scope 1 and 2 emissions, science-based where","page_number":238,"box":{"x":101,"y":60,"width":770,"height":11}},{"id":"752738ea-68a0-4729-a9d3-8a31a5d44305","block_type":"box","text":"possible. The team welcomes disclosure of targets or indicative goals, where companies have set them, for","page_number":238,"box":{"x":102,"y":75,"width":768,"height":11}},{"id":"8f36e1de-e8b0-4643-a696-b390e90b4b7b","block_type":"box","text":"scope 3 emissions reductions. Scope 3 information, including how a company is working with its value chain to","page_number":238,"box":{"x":102,"y":90,"width":792,"height":11}},{"id":"0deef2dc-8200-478c-b260-e8442d55a237","block_type":"box","text":"accelerate reductions in GHG intensity, provides useful insight to investors focused on investing in the low","page_number":238,"box":{"x":102,"y":105,"width":760,"height":11}},{"id":"c918a813-0e8a-449c-959c-f5d8f591efd3","block_type":"box","text":"carbon transition and understanding the impact of their investments on their decarbonization goals.","page_number":238,"box":{"x":101,"y":120,"width":709,"height":12}},{"id":"2a6fd82d-93f0-4cff-9dfa-25187266892b","block_type":"box","text":"18","page_number":238,"box":{"x":812,"y":121,"width":9,"height":4}},{"id":"4c881a12-35b4-44c9-8541-e79464a3fea5","block_type":"box","text":"However,","page_number":238,"box":{"x":827,"y":120,"width":62,"height":11}},{"id":"2bbfbd25-921b-409d-98e3-1b6907abd7cb","block_type":"box","text":"the team recognizes that companies have varying ability to influence the emissions across the different par ts of","page_number":238,"box":{"x":101,"y":135,"width":802,"height":12}},{"id":"5d0d75da-5ce9-4d29-a8c1-ae674732ebf7","block_type":"box","text":"their value chain and, therefore, it is helpful when disclosures explain the implications for the achievement of","page_number":238,"box":{"x":101,"y":150,"width":780,"height":11}},{"id":"fbb19fc1-3ca8-49ac-815f-0726dc152a4c","block_type":"box","text":"their decarbonization targets. 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The Protocol Standards and Guidance are currently being updated to ensure they continue to","page_number":238,"box":{"x":69,"y":648,"width":838,"height":12}},{"id":"5801d962-539f-4c37-9d56-31cee6177dda","block_type":"box","text":"provide “a rigorous and credible accounting foundation for businesses to measure, plan and track progress toward","page_number":238,"box":{"x":70,"y":663,"width":816,"height":12}},{"id":"4b536c68-86d4-426f-bc0f-2ffcc44ad70b","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":238,"box":{"x":69,"y":679,"width":784,"height":11}},{"id":"a005ed85-a105-4951-85d3-fbaadff8ee7a","block_type":"box","text":"18","page_number":238,"box":{"x":69,"y":697,"width":9,"height":4}},{"id":"65d96238-0050-4141-b1f9-9d95e55f9303","block_type":"box","text":"The dedicated team does not believe the purpose of scope 3 disclosure requirements should be to push publicly","page_number":238,"box":{"x":83,"y":696,"width":804,"height":11}},{"id":"bc8c629f-41a1-48db-969a-4e473e3f815e","block_type":"box","text":"traded companies into the role of enforcing emission reduction targets outside of their control. Given methodological","page_number":238,"box":{"x":68,"y":711,"width":832,"height":12}},{"id":"b9698d5b-b9f2-4c15-add1-3178eb5bbee9","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":238,"box":{"x":69,"y":726,"width":832,"height":12}},{"id":"8a48be2c-fd24-45b2-ae64-0510ac3dd1bf","block_type":"box","text":"useful when companies focus their disclosures on those of the fifteen scope 3 GHG Protocol categories that are","page_number":238,"box":{"x":69,"y":742,"width":800,"height":11}},{"id":"354dcc1d-2c3f-4e0f-9d64-42eaf7eeede5","block_type":"box","text":"material to their business models.","page_number":238,"box":{"x":69,"y":757,"width":243,"height":9}},{"id":"4c252200-d848-4ce4-ad16-ca2373c12718","block_type":"box","text":"19","page_number":238,"box":{"x":69,"y":775,"width":9,"height":4}},{"id":"870bfcc9-8ea6-47fd-bf8e-cdc7d5879619","block_type":"box","text":"International Financial Repor ting Standards, “IFRS S2: Climate-related Disclosures,” June 2023, accessed in","page_number":238,"box":{"x":84,"y":774,"width":777,"height":12}},{"id":"7f1e48fa-1811-4b2d-996a-bf418f23db78","block_type":"box","text":"December 2025.","page_number":238,"box":{"x":70,"y":790,"width":118,"height":8}},{"id":"fcac58e8-83cc-4d2b-ba05-ccf0a6f96f96","block_type":"box","text":"20","page_number":238,"box":{"x":69,"y":807,"width":9,"height":5}},{"id":"8b7d533a-4f4c-4976-be33-4e048e73b4e5","block_type":"box","text":"More companies are developing such plans, and public policymakers in cer tain markets are signaling their","page_number":238,"box":{"x":84,"y":807,"width":758,"height":11}},{"id":"767da35b-4c5d-4e32-85b5-f9f443d77173","block_type":"box","text":"intentions to require them or already have requirements in place, such as Australia, Brazil, and the European Union","page_number":238,"box":{"x":70,"y":822,"width":820,"height":11}},{"id":"b45c212c-4395-4212-851f-285fcd09cace","block_type":"box","text":"(please see the International Transition Plan Network for information). 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Given for thcoming regulatory requirements in cer tain jurisdictions, some companies are voluntarily","page_number":239,"box":{"x":101,"y":420,"width":774,"height":11}},{"id":"a56e035f-b625-4f1b-a52a-594e5fe360f7","block_type":"box","text":"disclosing scope 3 emissions reductions targets and plans, setting out how they are working on decarbonization","page_number":239,"box":{"x":101,"y":435,"width":800,"height":11}},{"id":"9c253e44-b290-4fc3-91e9-04d8fafb39b0","block_type":"box","text":"with the different constituents in their value chain.","page_number":239,"box":{"x":101,"y":450,"width":358,"height":9}},{"id":"84a6293b-3366-4c2c-850a-451fda674264","block_type":"box","text":"21","page_number":239,"box":{"x":461,"y":451,"width":9,"height":4}},{"id":"f6ce362e-42f6-4138-b6f6-c7cb0943e554","block_type":"box","text":"•","page_number":239,"box":{"x":69,"y":473,"width":6,"height":5}},{"id":"5812d72e-e22e-4b40-88b5-f7ba1b2d6a71","block_type":"box","text":"The company’s governance and oversight processes for managing material risks associated with corporate","page_number":239,"box":{"x":101,"y":470,"width":761,"height":12}},{"id":"c75aa979-9bff-47cc-ad8b-bdef1b069def","block_type":"box","text":"political activities including applicable policies and procedures where relevant.","page_number":239,"box":{"x":102,"y":486,"width":556,"height":11}},{"id":"9429183d-c741-4322-abf5-47091ba003b3","block_type":"box","text":"22","page_number":239,"box":{"x":660,"y":486,"width":8,"height":4}},{"id":"f93a0f5b-7fc4-4d07-8b3e-5a705e8f538e","block_type":"box","text":"The dedicated team looks for","page_number":239,"box":{"x":674,"y":486,"width":208,"height":9}},{"id":"56c6ff94-c667-477b-a9c8-d4810557ceac","block_type":"box","text":"public policy engagement to be consistent with a company’s stated strategic policy objectives, including those","page_number":239,"box":{"x":102,"y":501,"width":783,"height":11}},{"id":"1c1d38e1-8c47-4bde-b3eb-a680f906548b","block_type":"box","text":"related to the low-carbon transition.","page_number":239,"box":{"x":102,"y":516,"width":251,"height":9}},{"id":"633592df-ca86-4c59-ac3d-85ce12275442","block_type":"box","text":"Voting against directors over concerns about climate risk","page_number":239,"box":{"x":68,"y":546,"width":420,"height":11}},{"id":"0f84e7bc-8469-4299-97b0-06c4f602e799","block_type":"box","text":"In implementing these Guidelines, the dedicated team generally suppor ts non-executive directors standing for","page_number":239,"box":{"x":102,"y":569,"width":781,"height":11}},{"id":"452444fa-19d3-4f57-9ec2-229d4ece1679","block_type":"box","text":"election where, in its assessment based on company disclosures and engagement, a company is executing on its","page_number":239,"box":{"x":69,"y":584,"width":811,"height":11}},{"id":"2537eb3c-3833-4cb9-96da-eb25f7e07b63","block_type":"box","text":"commitment to align with the transition to a low-carbon economy, as defined above. 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The directors most likely to be in focus are the chair of the board","page_number":239,"box":{"x":69,"y":629,"width":780,"height":11}},{"id":"7aaef2c9-0faa-4a1d-bd3e-0062ae3f0c8a","block_type":"box","text":"committee with low-carbon transition, climate or sustainability risk oversight responsibilities, other members of the","page_number":239,"box":{"x":69,"y":644,"width":817,"height":12}},{"id":"cb80a77b-28fe-4b2f-949d-2ef881d9bde6","block_type":"box","text":"relevant committee, the lead independent director or the non-executive chair of the board. 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The research uses a definition of materiality from the GHG Protocol,","page_number":239,"box":{"x":69,"y":734,"width":813,"height":11}},{"id":"43bb5bba-e7d1-4062-8078-0c0890328257","block_type":"box","text":"which “encourages companies to maintain a representative inventory of the “most significant GHG emissions, [that]","page_number":239,"box":{"x":68,"y":749,"width":828,"height":11}},{"id":"f71a2907-1695-4ab3-8379-85ce35f9d856","block_type":"box","text":"offer the most significant GHG reduction oppor tunities and are most relevant to the company’s business goals.”","page_number":239,"box":{"x":69,"y":764,"width":801,"height":12}},{"id":"9c8551b0-b29b-4f60-984c-1326b40d7aa1","block_type":"box","text":"Website accessed in December 2025.","page_number":239,"box":{"x":68,"y":779,"width":272,"height":9}},{"id":"8f6c52bd-9fe3-49e6-8b54-13e9026ed0aa","block_type":"box","text":"22","page_number":239,"box":{"x":69,"y":797,"width":9,"height":5}},{"id":"5a863bf3-a723-426f-90e3-3b0248886dc1","block_type":"box","text":"Corporate political activities may include lobbying as defined by local regulations, policy engagement (including","page_number":239,"box":{"x":84,"y":797,"width":787,"height":11}},{"id":"98388d69-52e4-45b8-b2de-f2d18b2e32ba","block_type":"box","text":"trade association memberships), and corporate political contributions.","page_number":239,"box":{"x":68,"y":812,"width":500,"height":11}},{"id":"5c1a1a0d-7b89-4826-96d7-72ae94c366bf","block_type":"box","text":"23","page_number":239,"box":{"x":69,"y":830,"width":9,"height":5}},{"id":"b8d537c7-0a90-4849-8030-7d157f124491","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":239,"box":{"x":84,"y":830,"width":801,"height":11}},{"id":"c00cbda8-c223-40eb-9fe4-f5608e1262f5","block_type":"box","text":"information on a company’s sustainability effor ts, operational resilience, or financial condition, among others.","page_number":239,"box":{"x":70,"y":845,"width":782,"height":11}},{"id":"f10b1e83-3d6a-4ae0-ba1e-57e6433e1460","block_type":"box","text":"BlackRock Investment Stewardship","page_number":239,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"91db3af5-52e1-4f05-ae22-706c914fdedc","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 7","page_number":239,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"b315fc90-a63f-456b-832a-568184cc5b98","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":239,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"60f7e967-f190-4044-9eaa-9bef89b3e58b","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":240,"box":{"x":101,"y":45,"width":780,"height":11}},{"id":"016c19a6-fdc3-41c0-b90a-5ad59f86f06b","block_type":"box","text":"company has not subsequently made progress towards aligning with the transition to a low-carbon economy, the team","page_number":240,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"329c7f07-6231-4492-b1b5-9dbe3a5ec5a4","block_type":"box","text":"may escalate by not suppor ting the re-election of additional responsible directors.","page_number":240,"box":{"x":69,"y":75,"width":582,"height":11}},{"id":"09a71a72-7fd5-4043-aff7-3d202e322161","block_type":"box","text":"24","page_number":240,"box":{"x":653,"y":75,"width":9,"height":5}},{"id":"fc1b92d6-9e93-4fdf-94e3-763aa95e730f","block_type":"box","text":"Management proposals to approve a climate strategy or progress report","page_number":240,"box":{"x":69,"y":105,"width":528,"height":11}},{"id":"e0d53d14-c5b1-4f9b-bd55-ffc5de0f391f","block_type":"box","text":"In cer tain markets, company management may submit proposals— commonly referred to as “Say on Climate” —","page_number":240,"box":{"x":102,"y":128,"width":807,"height":11}},{"id":"d070dc88-43a6-4a9e-a746-c63a36c30d38","block_type":"box","text":"seeking shareholder approval of their climate action plans or progress repor ts. The Guidelines consider these","page_number":240,"box":{"x":69,"y":143,"width":782,"height":11}},{"id":"d3d778fa-e44c-4662-9c47-47149f31ee9c","block_type":"box","text":"proposals as a valuable governance mechanism that can enhance transparency, accountability, and investors’","page_number":240,"box":{"x":70,"y":158,"width":782,"height":11}},{"id":"6aaff12e-45e7-47f9-b903-6975d3cb4af1","block_type":"box","text":"understanding of a company’s climate strategy. The dedicated team generally suppor ts management’s climate","page_number":240,"box":{"x":69,"y":173,"width":787,"height":11}},{"id":"61fadd37-af9d-4e7f-9e7e-e72ba098d2bc","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":240,"box":{"x":69,"y":188,"width":838,"height":12}},{"id":"69475e0e-eba0-4d01-894a-7e2309a4786f","block_type":"box","text":"transition. Similarly, the dedicated team generally suppor ts management’s proposal on a progress repor t if the","page_number":240,"box":{"x":68,"y":203,"width":792,"height":12}},{"id":"3bba07da-018a-4b1d-b261-4d9be1f15984","block_type":"box","text":"company has clearly explained its progress against, and any deviations from or changes to, its stated low-carbon","page_number":240,"box":{"x":69,"y":218,"width":803,"height":12}},{"id":"8fd465ca-00b0-4d6c-844a-cf63648824ef","block_type":"box","text":"transition plan and targets.","page_number":240,"box":{"x":68,"y":234,"width":193,"height":11}},{"id":"c70ea101-7752-4db4-8c5e-fbffa5580438","block_type":"box","text":"Shareholder proposals on climate and low-carbon transition matters","page_number":240,"box":{"x":68,"y":264,"width":495,"height":11}},{"id":"a5d3bc5e-4042-4019-a928-fabf661de95b","block_type":"box","text":"In most markets, shareholders can submit proposals to be voted on at a company’s shareholder meeting, as","page_number":240,"box":{"x":102,"y":287,"width":777,"height":11}},{"id":"bd181b73-f5ad-43e3-bbfa-8dd28092ba59","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":240,"box":{"x":70,"y":302,"width":824,"height":11}},{"id":"281262f0-0b34-4396-8d10-d9d3df9813f3","block_type":"box","text":"of relevance for companies across sectors, locations, and business models.","page_number":240,"box":{"x":69,"y":317,"width":543,"height":11}},{"id":"1a2731f2-295b-4490-9b6e-64996ba12ad3","block_type":"box","text":"Each shareholder proposal is evaluated on a case-by-case basis, focusing on its merit while considering the","page_number":240,"box":{"x":102,"y":339,"width":767,"height":12}},{"id":"b1b16c37-7a14-43c0-a275-8c1c44132e9f","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":240,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"fdceed18-0323-49a0-808d-57d15410e6cd","block_type":"box","text":"endorsing every element of the proposal or the reasoning, objectives, or suppor ting statement of the proponent.","page_number":240,"box":{"x":69,"y":370,"width":800,"height":11}},{"id":"2235030f-4036-4ced-8dd5-c3e7b28d3721","block_type":"box","text":"In addition to financial materiality, the Guidelines consider the proposal’s relevance to the company’s low-carbon","page_number":240,"box":{"x":102,"y":392,"width":802,"height":12}},{"id":"a456b49a-dea1-49cc-afdb-944dd4ca8fdd","block_type":"box","text":"transition strategy and targets. The dedicated team assesses the implications for, and the relevance to, the","page_number":240,"box":{"x":68,"y":407,"width":770,"height":12}},{"id":"3885189b-b675-40b8-ad81-9c66ae416ada","block_type":"box","text":"company’s stated low-carbon transition strategy and targets. Under the Guidelines, the team may suppor t","page_number":240,"box":{"x":69,"y":423,"width":754,"height":11}},{"id":"3ed88cb1-4a4b-4d2f-a02c-c0ca5226d36f","block_type":"box","text":"shareholder proposals that, for example, ask a company to:","page_number":240,"box":{"x":69,"y":438,"width":425,"height":11}},{"id":"a72ba345-2d6d-4f8b-88dd-6f6d2ad21f30","block_type":"box","text":"•","page_number":240,"box":{"x":69,"y":461,"width":6,"height":4}},{"id":"a29d7276-73a6-4fd8-b47f-58263ee4bf9d","block_type":"box","text":"Publish a business plan, and related disclosures, consistent with the ambition to limit average global","page_number":240,"box":{"x":102,"y":458,"width":719,"height":11}},{"id":"1d4092d1-48bd-474c-93d7-29fdf924bc98","block_type":"box","text":"temperature rise to no more than 1.5°C above pre-industrial levels","page_number":240,"box":{"x":101,"y":473,"width":474,"height":11}},{"id":"68e7a82d-544e-4b17-9e2c-be92a742e492","block_type":"box","text":"•","page_number":240,"box":{"x":69,"y":496,"width":6,"height":5}},{"id":"65b852d4-30e2-4871-8225-56484164001b","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":240,"box":{"x":101,"y":493,"width":807,"height":11}},{"id":"79b9ac0e-f8ea-41bf-9a60-81bb8bcb5f67","block_type":"box","text":"goal of the company achieving net zero GHG emissions by 2050","page_number":240,"box":{"x":101,"y":508,"width":457,"height":12}},{"id":"c80d9e60-1e04-459f-9b19-0cf652b2c824","block_type":"box","text":"•","page_number":240,"box":{"x":69,"y":531,"width":6,"height":5}},{"id":"449179c7-fbdb-4913-be72-9ef7dea1bde9","block_type":"box","text":"Disclose the categories of scope 3 GHG emissions most significant to a company’s business model","page_number":240,"box":{"x":102,"y":528,"width":712,"height":12}},{"id":"b9b19148-bf81-42ed-ae5d-e9d7144ecbfc","block_type":"box","text":"•","page_number":240,"box":{"x":69,"y":551,"width":6,"height":5}},{"id":"a1d13c80-e03f-4bd8-bed1-9b5bd2661926","block_type":"box","text":"Improve voluntary disclosures on the alignment of a company’s climate-related corporate political activities with","page_number":240,"box":{"x":102,"y":549,"width":794,"height":11}},{"id":"f7090325-3cd5-4f18-8738-42411653d947","block_type":"box","text":"its strategic policy positions, where existing disclosure is insufficient","page_number":240,"box":{"x":102,"y":564,"width":489,"height":11}},{"id":"2a9929dc-3b23-45b7-bfbf-ead71202d8ed","block_type":"box","text":"25","page_number":240,"box":{"x":592,"y":564,"width":9,"height":5}},{"id":"9e80479d-d55c-4933-bc9e-31cc03677a88","block_type":"box","text":"The dedicated team does not suppor t shareholder proposals that seek to constrain board or management","page_number":240,"box":{"x":101,"y":587,"width":758,"height":11}},{"id":"db06242e-1694-4b41-8711-3b83f9db270c","block_type":"box","text":"decision-making or direct specific business or strategic decisions.","page_number":240,"box":{"x":69,"y":601,"width":468,"height":12}},{"id":"dee2df5a-598d-48f7-9826-3775593856e5","block_type":"box","text":"RELATED MATTERS","page_number":240,"box":{"x":419,"y":632,"width":140,"height":9}},{"id":"af0719c9-d379-4830-aef3-e00c85f7f93e","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":240,"box":{"x":101,"y":655,"width":771,"height":11}},{"id":"7f293b94-1672-4f2e-8699-feae95588cf6","block_type":"box","text":"matters relevant to the transition to a low-carbon economy. Under these Guidelines, the dedicated team engages,","page_number":240,"box":{"x":69,"y":670,"width":808,"height":11}},{"id":"a92a4a5c-a5dc-4cb7-8eab-90294178dadb","block_type":"box","text":"where appropriate, to enhance its understanding of a company’s approach. Generally, voting on these matters would","page_number":240,"box":{"x":68,"y":685,"width":831,"height":11}},{"id":"b8b4eba5-48fd-4b30-a4b3-d22373b773a7","block_type":"box","text":"be covered by BIS’ Benchmark Policies.","page_number":240,"box":{"x":69,"y":700,"width":280,"height":11}},{"id":"3a65d164-ce8d-4160-adb5-d4a463f417c2","block_type":"box","text":"Executive compensation","page_number":240,"box":{"x":69,"y":730,"width":177,"height":11}},{"id":"b228ad33-7538-4329-838f-dff6ff9d71ea","block_type":"box","text":"The dedicated team looks to company boards to put in place a compensation structure that incentivizes and","page_number":240,"box":{"x":101,"y":753,"width":772,"height":11}},{"id":"8976afc9-38c6-491e-bb2d-55f71a4fedfd","block_type":"box","text":"rewards executives appropriately. Some companies, in light of their long-term strategy, may decide to include relevant","page_number":240,"box":{"x":69,"y":768,"width":837,"height":11}},{"id":"90493c19-fd33-4c7c-9a00-10ff91c79952","block_type":"box","text":"GHG emissions reduction targets or low-carbon transition-related metrics in their incentive plans. In such cases, the","page_number":240,"box":{"x":69,"y":783,"width":826,"height":11}},{"id":"b3091dd5-5d90-4b13-9469-b2534680685a","block_type":"box","text":"dedicated team would engage to understand the alignment between those metrics and the company’s stated climate","page_number":240,"box":{"x":69,"y":798,"width":834,"height":11}},{"id":"19452253-3a7b-42ac-a731-e9787a3756d6","block_type":"box","text":"24","page_number":240,"box":{"x":69,"y":828,"width":9,"height":4}},{"id":"daf96603-3b9c-47c4-b405-da7463b6bee8","block_type":"box","text":"While the dedicated team may escalate voting by not suppor ting additional management proposals, principally","page_number":240,"box":{"x":83,"y":827,"width":787,"height":12}},{"id":"e6f79b96-3871-44fb-b99e-a24ecbac27ef","block_type":"box","text":"director elections, the team does not consider filing shareholder proposals, preannouncing voting intentions or using","page_number":240,"box":{"x":69,"y":842,"width":832,"height":12}},{"id":"91922af2-fba2-4d18-bd1e-f03ede8107bb","block_type":"box","text":"the media to amplify concerns as appropriate courses of action. The dedicated team will continue to take a","page_number":240,"box":{"x":68,"y":857,"width":765,"height":12}},{"id":"5b74b432-420e-4e26-8999-27fcc3a25b22","block_type":"box","text":"constructive, long-term focused approach, to engagement and voting on behalf of clients under these Guidelines.","page_number":240,"box":{"x":69,"y":873,"width":805,"height":11}},{"id":"e38cfc65-e1a8-4f32-9d04-cb57eec94ed9","block_type":"box","text":"25","page_number":240,"box":{"x":69,"y":891,"width":9,"height":4}},{"id":"592712de-c4ed-48bb-8962-f41d9e1c0df8","block_type":"box","text":"Corporate political activities may include lobbying as defined by local regulations, policy engagement (including","page_number":240,"box":{"x":84,"y":890,"width":787,"height":12}},{"id":"ba3b5aa2-11e0-423b-887d-bb08852ed9dd","block_type":"box","text":"trade association memberships), and corporate political contributions.","page_number":240,"box":{"x":68,"y":906,"width":500,"height":10}},{"id":"b1f3e2ea-c3fd-40ca-8415-5fb14b01fc96","block_type":"box","text":"BlackRock Investment Stewardship","page_number":240,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"b1ed2e72-39d7-4d5a-994b-1f1026c4b25b","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 8","page_number":240,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"2016bebe-7b95-4230-acf8-29971014a03d","block_type":"box","text":"BNM1026U-6032633-19203484","page_number":240,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0896f52b-efe2-4bf6-a6dd-4bfede39cab0","block_type":"box","text":"strategy. Clear disclosure also helps investors assess whether pay structures are consistent with long-term climate","page_number":241,"box":{"x":69,"y":45,"width":821,"height":11}},{"id":"6427f45a-d2b5-4b01-914b-42cf718a86d3","block_type":"box","text":"strategy and risk management.","page_number":241,"box":{"x":69,"y":60,"width":219,"height":11}},{"id":"200503b0-4fb2-4e0d-b3ed-d6a86ca4731b","block_type":"box","text":"Auditors and audit-related issues","page_number":241,"box":{"x":68,"y":90,"width":240,"height":9}},{"id":"7abe97bb-6950-4fe8-80a5-95e5515de726","block_type":"box","text":"For companies with material climate or transition risks or oppor tunities in their business models, the dedicated","page_number":241,"box":{"x":102,"y":113,"width":793,"height":11}},{"id":"00aa573c-98fa-48c6-b09e-bfc2787ff3e2","block_type":"box","text":"team is interested in understanding whether the company considers and, if relevant, quantifies, and accounts for","page_number":241,"box":{"x":68,"y":128,"width":807,"height":11}},{"id":"7a57c04b-b23a-43c4-b244-718812833d84","block_type":"box","text":"material climate-related risks in its financial statements, including if the company explains such risks within the","page_number":241,"box":{"x":69,"y":143,"width":794,"height":11}},{"id":"72039a49-4ad8-4b58-b8d5-af190ba4da23","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":241,"box":{"x":69,"y":158,"width":812,"height":11}},{"id":"c3a65ac7-8824-4a2b-ab15-874ec5d6edf5","block_type":"box","text":"transition to a low-carbon economy is still nascent.","page_number":241,"box":{"x":68,"y":173,"width":361,"height":11}},{"id":"81e6d39a-877d-4bb1-88ab-296151076073","block_type":"box","text":"Mergers, acquisitions, asset sales, and other special situations","page_number":241,"box":{"x":69,"y":203,"width":463,"height":11}},{"id":"71ac7f22-fddc-4603-b4ba-6bdf5e447756","block_type":"box","text":"Special situations will be considered on their financial merits, but the dedicated team may engage on climate","page_number":241,"box":{"x":102,"y":226,"width":783,"height":11}},{"id":"03b49ab2-7ba2-432f-be72-3af8c4155b7c","block_type":"box","text":"related factors under these Guidelines where a transaction may significantly alter a company’s climate strategy or a","page_number":241,"box":{"x":69,"y":241,"width":824,"height":11}},{"id":"67b49bdf-6f7b-4931-91ec-4223a4acf714","block_type":"box","text":"shareholder activist has proposed governance, strategic or operational changes that may impact its climate strategy.","page_number":241,"box":{"x":69,"y":257,"width":831,"height":11}},{"id":"176b9724-3dda-4287-acca-51bf76a1f6ab","block_type":"box","text":"The dedicated team does not promote changes in corporate control or engage in shareholder activism.","page_number":241,"box":{"x":68,"y":272,"width":731,"height":11}},{"id":"a8a5480e-0834-4051-bed2-3253324b5497","block_type":"box","text":"Other business relevant sustainability-related risks and opportunities","page_number":241,"box":{"x":69,"y":302,"width":503,"height":11}},{"id":"6636688c-c221-49db-9e93-445ec2a9ea9a","block_type":"box","text":"Climate risk and the transition to a low-carbon economy are interconnected with a number of other material","page_number":241,"box":{"x":102,"y":324,"width":762,"height":11}},{"id":"e5546b7b-fa7d-4fbe-b204-6be2d12960bd","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":241,"box":{"x":69,"y":340,"width":802,"height":11}},{"id":"e2758156-cc36-4fb7-b997-21d17d3bfc36","block_type":"box","text":"financial per formance. These include a company’s impacts or dependencies on natural capital and key","page_number":241,"box":{"x":68,"y":355,"width":734,"height":11}},{"id":"0aa13842-26a4-4291-956a-73b5addd3982","block_type":"box","text":"stakeholders.","page_number":241,"box":{"x":69,"y":370,"width":95,"height":9}},{"id":"a9a091c1-a435-40b6-86ca-b712f7034c6f","block_type":"box","text":"26","page_number":241,"box":{"x":166,"y":370,"width":9,"height":5}},{"id":"0ab6e097-5bdd-49a1-b38f-8442604beef2","block_type":"box","text":"In the context of these Guidelines, the dedicated team may engage companies to better understand","page_number":241,"box":{"x":182,"y":370,"width":710,"height":11}},{"id":"72812dfb-ac1f-4b7b-a19f-642fb7a5e21d","block_type":"box","text":"how they are managing the impact on people (e.g., employees, suppliers, customers and communities) of any","page_number":241,"box":{"x":69,"y":385,"width":783,"height":11}},{"id":"43f7ee3a-f3f1-45ab-a043-2e6f5f630f6b","block_type":"box","text":"strategic or operational changes they are making in relation to their transition to a low-carbon economy. 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The economic transformation is being driven by changes in","page_number":242,"box":{"x":69,"y":188,"width":811,"height":12}},{"id":"c24394ed-cf42-4ba4-a138-edf1d6563be4","block_type":"box","text":"government policy, technology, and consumer and investor preferences, as well as the physical effects of climate","page_number":242,"box":{"x":68,"y":203,"width":807,"height":12}},{"id":"607645ab-2203-4c0d-8a07-e0216c334f0f","block_type":"box","text":"change (e.g., extreme weather), and can potentially have a material impact on clients’ investments and por tfolios.","page_number":242,"box":{"x":69,"y":218,"width":812,"height":12}},{"id":"9be88aa1-1c2e-4bae-99c7-17c78e21d63d","block_type":"box","text":"Decarbonization:","page_number":242,"box":{"x":102,"y":241,"width":120,"height":9}},{"id":"9e2741cb-0743-4443-ab00-2ed427cc3b8d","block_type":"box","text":"the process of reducing or eliminating emissions of carbon dioxide (CO2) from human activity","page_number":242,"box":{"x":228,"y":241,"width":664,"height":11}},{"id":"c93dc370-c538-4867-8eba-37b488554fa9","block_type":"box","text":"and removing carbon currently in the atmosphere. This can be carried out by countries, companies and even","page_number":242,"box":{"x":69,"y":257,"width":771,"height":11}},{"id":"d9a4c84a-5394-4bf5-a7df-0ffa3c37250f","block_type":"box","text":"individual consumers. Sometimes the concept is understood to include the reduction and elimination of other GHG,","page_number":242,"box":{"x":70,"y":271,"width":820,"height":11}},{"id":"b199823d-a771-4314-991a-4d4ddaea38e9","block_type":"box","text":"e.g., methane.","page_number":242,"box":{"x":69,"y":287,"width":102,"height":11}},{"id":"ab1da7a2-7c3f-4c49-8bb3-e214d0fcbd16","block_type":"box","text":"Climate-related risks and opportunities:","page_number":242,"box":{"x":101,"y":309,"width":289,"height":11}},{"id":"7c749a56-23c3-4383-85f4-a16d81e49818","block_type":"box","text":"The investment oppor tunities and risks associated with the transition","page_number":242,"box":{"x":396,"y":309,"width":495,"height":11}},{"id":"f2e58fa9-483c-427e-8dd7-e8c7dcb7b8df","block_type":"box","text":"to a low-carbon economy, including transition risks and oppor tunities and physical risks and oppor tunities in adapting","page_number":242,"box":{"x":68,"y":325,"width":838,"height":11}},{"id":"f838dd04-0a3a-47f9-9eaf-1bd1d12f1b84","block_type":"box","text":"to physical climate change.","page_number":242,"box":{"x":68,"y":340,"width":193,"height":11}},{"id":"a65a6916-182f-4268-abcf-5776a3cad5b2","block_type":"box","text":"Climate-related transition plan:","page_number":242,"box":{"x":101,"y":362,"width":226,"height":11}},{"id":"a89af79a-5bd7-4b40-937a-3b1064bc7b57","block_type":"box","text":"“An aspect of an entity’s overall strategy that lays out the entity’s targets,","page_number":242,"box":{"x":334,"y":362,"width":525,"height":11}},{"id":"c25ac8b9-008c-414b-91b0-f2def8c3595d","block_type":"box","text":"actions or resources for its transition towards a lower-carbon economy, including actions such as reducing its","page_number":242,"box":{"x":69,"y":377,"width":778,"height":12}},{"id":"8b337fe1-2e08-4e42-a5b3-b28c48d2679c","block_type":"box","text":"greenhouse gas emissions.”","page_number":242,"box":{"x":68,"y":393,"width":203,"height":11}},{"id":"65de7486-5824-449c-bf67-72e02c4e08b5","block_type":"box","text":"27","page_number":242,"box":{"x":273,"y":393,"width":9,"height":4}},{"id":"9de572ba-7458-4f9b-a96b-ec6d0f392fcc","block_type":"box","text":"Science-based GHG emissions reduction targets:","page_number":242,"box":{"x":101,"y":415,"width":356,"height":11}},{"id":"ffd14576-5164-41ee-a167-5a1fc8d57e3d","block_type":"box","text":"Targets that “","page_number":242,"box":{"x":463,"y":415,"width":96,"height":11}},{"id":"5535cc0a-b91f-4d00-a15b-9a351dfebe16","block_type":"box","text":"are in line with what the latest climate science","page_number":242,"box":{"x":569,"y":415,"width":331,"height":9}},{"id":"3454e3ec-52a8-4081-8979-2e4c6e1ec01f","block_type":"box","text":"deems necessary to meet the goals of the Paris Agreement — limiting global warming to 1.5°C above pre-industrial","page_number":242,"box":{"x":69,"y":430,"width":822,"height":11}},{"id":"dd88ce54-1433-4679-ac0d-4e91e454b0a0","block_type":"box","text":"levels. Science-based targets give companies a clearly defined path to reduce GHG emissions in line with limiting","page_number":242,"box":{"x":70,"y":445,"width":806,"height":12}},{"id":"a8e62c4d-4f73-4973-abb2-79aafc556b56","block_type":"box","text":"global warming to 1.5°C. They define how much and how quickly a business must reduce its emissions to be in line","page_number":242,"box":{"x":68,"y":460,"width":824,"height":12}},{"id":"a03efdea-056d-4073-b601-aa349d3715d6","block_type":"box","text":"with the Paris Agreement goals.”","page_number":242,"box":{"x":68,"y":476,"width":232,"height":11}},{"id":"5d49ee09-5168-4b93-8681-c353ea226c9b","block_type":"box","text":"28","page_number":242,"box":{"x":302,"y":476,"width":9,"height":4}},{"id":"03d2f5b6-6572-4cbc-b290-1bd93bb9e8f2","block_type":"box","text":"Scope 1:","page_number":242,"box":{"x":101,"y":498,"width":63,"height":11}},{"id":"08a1b137-2249-4e9b-a595-4d0f7507db6b","block_type":"box","text":"Direct GHG emissions. Direct GHG emissions occur from sources that are owned or controlled by the","page_number":242,"box":{"x":172,"y":498,"width":718,"height":11}},{"id":"d649bba5-e9c6-4f83-a9c6-25ac9d2e2afa","block_type":"box","text":"company, for example, emissions from combustion in owned or controlled boilers, furnaces, vehicles, etc.; emissions","page_number":242,"box":{"x":69,"y":513,"width":836,"height":11}},{"id":"5dfd05ff-0278-49bc-9ea0-ae5abcef755c","block_type":"box","text":"from chemical production in owned or controlled process equipment.","page_number":242,"box":{"x":68,"y":528,"width":489,"height":11}},{"id":"9e5e22c4-5c4c-4078-bd9c-945a64b27e1f","block_type":"box","text":"29","page_number":242,"box":{"x":559,"y":529,"width":9,"height":4}},{"id":"1c8b8087-cbac-4e9f-b9d7-662febae1998","block_type":"box","text":"Scope 2","page_number":242,"box":{"x":101,"y":551,"width":59,"height":11}},{"id":"d793cc84-7d8d-4068-82c5-d1b88e082355","block_type":"box","text":": Electricity indirect GHG emissions Scope 2 accounts for GHG emissions from the generation of","page_number":242,"box":{"x":162,"y":551,"width":685,"height":11}},{"id":"48e62056-e785-4c0e-9220-5a1115944050","block_type":"box","text":"purchased electricity [steam, and heating/cooling] consumed by the company. [It] is defined as electricity [steam,","page_number":242,"box":{"x":70,"y":566,"width":807,"height":11}},{"id":"b1873f0a-1666-4f13-82e1-270162b8de12","block_type":"box","text":"and heating/cooling] that is purchased or otherwise brought into the organizational boundary of the company.","page_number":242,"box":{"x":69,"y":581,"width":781,"height":12}},{"id":"fb6965d4-5e74-4590-8ab0-f7716e330d02","block_type":"box","text":"30","page_number":242,"box":{"x":852,"y":582,"width":9,"height":4}},{"id":"b9801b49-7087-48c5-856b-8fa3b58e1e4b","block_type":"box","text":"Scope 3:","page_number":242,"box":{"x":101,"y":604,"width":63,"height":11}},{"id":"3b259393-9066-4dbe-9361-9a0053cbf3a3","block_type":"box","text":"Other indirect GHG emissions. Scope 3 is an optional repor ting category that allows for the treatment","page_number":242,"box":{"x":171,"y":604,"width":725,"height":11}},{"id":"121804a5-3d0a-48d1-a13f-6ffb4ecba735","block_type":"box","text":"of all other indirect emissions. 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