{"annotation_id":"4e33ce65-6f06-40c0-a2db-7e2b6f8ba46e","file_hash":"11019f56c189446d286afd45058e1689df68f518070a16d6b3eafd0febc5291a","schema_id":"open/document-extraction","schema_version":"0.5.0","record":{"extraction_type":"boxes","producer":"pdf-extractor-v0.5.0","blocks":[{"id":"36dcee4d-f256-4617-8edc-d757e9add282","block_type":"box","text":"BlackRock Advantage Global Fund, Inc.","page_number":1,"box":{"x":116,"y":87,"width":296,"height":12}},{"id":"e63e0df3-c2a5-478c-b5a6-5a54c0b7e059","block_type":"box","text":"BlackRock Advantage SMID Cap Fund, Inc.","page_number":1,"box":{"x":116,"y":103,"width":325,"height":12}},{"id":"f50c3b3d-c924-4410-83d0-f7923e44a143","block_type":"box","text":"BlackRock Allocation Target Shares","page_number":1,"box":{"x":116,"y":118,"width":266,"height":12}},{"id":"05b83590-245f-462a-931d-8645dadf892a","block_type":"box","text":"BlackRock Balanced Fund, Inc.","page_number":1,"box":{"x":116,"y":134,"width":232,"height":11}},{"id":"e00a5d43-9f30-493d-b492-43e5c06504be","block_type":"box","text":"BlackRock Bond Fund, Inc.","page_number":1,"box":{"x":116,"y":150,"width":203,"height":11}},{"id":"427ea016-7dd4-4c39-9d78-6bacbfc67eba","block_type":"box","text":"BlackRock California Municipal Series Trust","page_number":1,"box":{"x":116,"y":165,"width":331,"height":12}},{"id":"1837f2f2-f89a-4c7a-b453-d858bd8e4bfb","block_type":"box","text":"BlackRock Capital Appreciation Fund, Inc.","page_number":1,"box":{"x":116,"y":180,"width":317,"height":12}},{"id":"f85bb55c-d93c-402d-87fb-6b9c7a9e47b4","block_type":"box","text":"BlackRock Emerging Markets Fund, Inc.","page_number":1,"box":{"x":116,"y":196,"width":301,"height":12}},{"id":"b7727fb0-a5ca-48a6-ab90-889a76f74eb8","block_type":"box","text":"BlackRock Equity Dividend Fund","page_number":1,"box":{"x":116,"y":212,"width":248,"height":11}},{"id":"5594dc77-31ac-41f9-9a91-1a0e1b91181d","block_type":"box","text":"BlackRock Financial Institutions Series Trust","page_number":1,"box":{"x":116,"y":227,"width":332,"height":9}},{"id":"b90972f9-d7c5-4be1-8a89-25b94315af8d","block_type":"box","text":"BlackRock Funds","page_number":1,"box":{"x":116,"y":243,"width":127,"height":9}},{"id":"50b22cdb-c3b3-4369-8615-75b811e5ba0c","block_type":"box","text":"SM","page_number":1,"box":{"x":244,"y":242,"width":15,"height":6}},{"id":"7e36995f-0e70-460e-9a08-c1f041cfbbc5","block_type":"box","text":"BlackRock Funds II","page_number":1,"box":{"x":116,"y":258,"width":149,"height":9}},{"id":"ffa78f0a-7733-4525-a66f-4ad97aebf2dc","block_type":"box","text":"BlackRock Funds III","page_number":1,"box":{"x":116,"y":274,"width":155,"height":9}},{"id":"4559d91b-ad40-4048-a8d7-dcf25d2abc1d","block_type":"box","text":"BlackRock Funds IV","page_number":1,"box":{"x":116,"y":289,"width":154,"height":9}},{"id":"c5b2357a-d520-4f02-b896-d183ef0cb536","block_type":"box","text":"BlackRock Funds V","page_number":1,"box":{"x":116,"y":305,"width":148,"height":9}},{"id":"57e11df9-a59d-4bd7-8d21-b0a0ed21bae1","block_type":"box","text":"BlackRock Funds VI","page_number":1,"box":{"x":116,"y":320,"width":154,"height":9}},{"id":"289d30a8-434e-458a-ac76-8ce72505b065","block_type":"box","text":"BlackRock Global Allocation Fund, Inc.","page_number":1,"box":{"x":116,"y":336,"width":292,"height":11}},{"id":"ca4ca5af-b069-4f8b-93c0-52d63091308c","block_type":"box","text":"BlackRock Index Funds, Inc.","page_number":1,"box":{"x":116,"y":351,"width":213,"height":11}},{"id":"a1fe4434-769d-4f29-a056-5b7a4bb8a1f4","block_type":"box","text":"BlackRock International Select Equity Fund","page_number":1,"box":{"x":520,"y":87,"width":324,"height":12}},{"id":"a62d6e8b-a2bf-49eb-81fd-225c65f35c58","block_type":"box","text":"BlackRock Large Cap Focus Growth Fund, Inc.","page_number":1,"box":{"x":520,"y":103,"width":349,"height":12}},{"id":"f59c3aa3-66e8-4027-959e-148561299aaf","block_type":"box","text":"BlackRock Large Cap Focus Value Fund, Inc.","page_number":1,"box":{"x":520,"y":118,"width":335,"height":12}},{"id":"8ec790a1-ddf9-4f5a-b046-54a2dc3c0119","block_type":"box","text":"BlackRock Large Cap Series Funds, Inc.","page_number":1,"box":{"x":520,"y":134,"width":296,"height":12}},{"id":"a827bc5a-b49a-4669-a57f-fe619d072ada","block_type":"box","text":"BlackRock Liquidity Funds","page_number":1,"box":{"x":520,"y":149,"width":203,"height":12}},{"id":"7966158d-2266-4f0f-bc4d-d3e962205ab2","block_type":"box","text":"BlackRock Mid-Cap Value Series, Inc.","page_number":1,"box":{"x":520,"y":165,"width":282,"height":12}},{"id":"387909f9-d27e-4c4f-bcdd-230a5fab9e56","block_type":"box","text":"BlackRock Multi-State Municipal Series Trust","page_number":1,"box":{"x":520,"y":180,"width":339,"height":12}},{"id":"632537ca-9329-4494-bcc5-0294d8b80ae0","block_type":"box","text":"BlackRock Municipal Bond Fund, Inc.","page_number":1,"box":{"x":520,"y":196,"width":282,"height":12}},{"id":"95530a2c-ee9b-4c90-9318-a4d9d73e8b3d","block_type":"box","text":"BlackRock Municipal Series Trust","page_number":1,"box":{"x":520,"y":211,"width":252,"height":12}},{"id":"fffcf810-f9d3-4a97-85ba-cd3d004d3260","block_type":"box","text":"BlackRock Natural Resources Trust","page_number":1,"box":{"x":520,"y":227,"width":264,"height":9}},{"id":"c62146f2-0cb0-477e-ad86-54292087777b","block_type":"box","text":"BlackRock Series Fund, Inc.","page_number":1,"box":{"x":520,"y":242,"width":208,"height":12}},{"id":"a86bf988-bac0-4bb0-b925-87a1718788dc","block_type":"box","text":"BlackRock Series Fund II, Inc.","page_number":1,"box":{"x":520,"y":258,"width":226,"height":11}},{"id":"01de5b63-59bc-4449-9c0e-e7588c4da270","block_type":"box","text":"BlackRock Series, Inc.","page_number":1,"box":{"x":520,"y":274,"width":166,"height":11}},{"id":"4fd3f409-36ac-4603-910c-4d90c03d6d34","block_type":"box","text":"BlackRock Strategic Global Bond Fund, Inc.","page_number":1,"box":{"x":520,"y":289,"width":325,"height":12}},{"id":"df105936-1730-4b56-9b90-c0954eb986de","block_type":"box","text":"BlackRock Unconstrained Equity Fund","page_number":1,"box":{"x":520,"y":305,"width":288,"height":11}},{"id":"7f22456e-185c-46a2-ac26-8d23b122f1af","block_type":"box","text":"BlackRock Variable Series Funds, Inc.","page_number":1,"box":{"x":520,"y":320,"width":282,"height":11}},{"id":"a2f8e0f1-1fe9-4077-b12c-b5d88893a398","block_type":"box","text":"BlackRock Variable Series Funds II, Inc.","page_number":1,"box":{"x":520,"y":336,"width":299,"height":11}},{"id":"c78ebb81-b968-4a92-8fe3-28f87e9cf8d2","block_type":"box","text":"Supplement dated October 16, 2026","page_number":1,"box":{"x":372,"y":378,"width":260,"height":12}},{"id":"5899c175-4ffd-48ab-97f8-4ea91f5fd29f","block_type":"box","text":"to the Statement of Additional Information (“SAI”) of each of the funds listed","page_number":1,"box":{"x":221,"y":394,"width":561,"height":11}},{"id":"b03dcbd4-2818-4c2b-a7a5-28e77e19ca54","block_type":"box","text":"in Appendix A (each, a “Fund”), as amended from time to time.","page_number":1,"box":{"x":271,"y":409,"width":461,"height":12}},{"id":"bf11a5f2-b095-4110-8889-840f4a90b3ca","block_type":"box","text":"Each Fund’s SAI is amended as follows:","page_number":1,"box":{"x":116,"y":436,"width":292,"height":9}},{"id":"4c96c3a7-005b-4a29-ba2d-d506304c7877","block_type":"box","text":"The list in the section entitled “Purchase of Shares - Additional Payments by BlackRock - D. Service","page_number":1,"box":{"x":116,"y":463,"width":722,"height":12}},{"id":"93bcef9b-d2d3-4143-8113-3feed5e7e347","block_type":"box","text":"Organizations Receiving Additional Payments” in Part II, or in the section entitled “Miscellaneous -","page_number":1,"box":{"x":116,"y":479,"width":721,"height":12}},{"id":"b0012b4d-ef27-41d9-bf72-96c2ebb7c56b","block_type":"box","text":"Additional Payments by BlackRock - D. Service Organizations Receiving Additional Payments,”","page_number":1,"box":{"x":116,"y":494,"width":695,"height":12}},{"id":"d419206a-64a4-43e7-8ff6-d4b6487a052f","block_type":"box","text":"“Investment Advisory Arrangements - Additional Payments by BlackRock - D. Service Organizations","page_number":1,"box":{"x":116,"y":510,"width":734,"height":12}},{"id":"09a4e689-45f5-4f58-84cc-57c15192a8ad","block_type":"box","text":"Receiving Additional Payments” or “Investment Adviser and Other Service Providers - Additional","page_number":1,"box":{"x":116,"y":525,"width":712,"height":12}},{"id":"eb3d84b0-d954-431b-914b-9a16ff927255","block_type":"box","text":"Payments by BlackRock - D. Service Organizations Receiving Additional Payments,” as applicable, of each","page_number":1,"box":{"x":116,"y":541,"width":771,"height":12}},{"id":"46d71df6-6d05-45da-b4a4-51422f3f199f","block_type":"box","text":"Fund’s current SAI, is deleted in its entirety and replaced with the following:","page_number":1,"box":{"x":116,"y":556,"width":557,"height":12}},{"id":"a5009935-e400-456f-a965-c27dc8559174","block_type":"box","text":"&Partners","page_number":1,"box":{"x":116,"y":584,"width":72,"height":9}},{"id":"24034a3c-3acc-4872-9200-109ad852549f","block_type":"box","text":"AccuTech Systems Corporation","page_number":1,"box":{"x":116,"y":599,"width":219,"height":12}},{"id":"12a06e0e-878c-45a9-aa26-8939ffd7a326","block_type":"box","text":"ADP Broker-Dealer, Inc.","page_number":1,"box":{"x":116,"y":615,"width":173,"height":10}},{"id":"bc7381df-a5bf-47e6-b333-9a81fddd881e","block_type":"box","text":"Advisor Credit Exchange, LLC","page_number":1,"box":{"x":116,"y":630,"width":215,"height":12}},{"id":"6d6fc32a-b338-4f37-9a74-2e2df6b8c589","block_type":"box","text":"Advisor Group, Inc.","page_number":1,"box":{"x":116,"y":646,"width":140,"height":11}},{"id":"525ccc67-c42e-4c6d-a41a-2a256de3b097","block_type":"box","text":"AE Wealth Management, LLC","page_number":1,"box":{"x":116,"y":661,"width":207,"height":12}},{"id":"cc7db424-0b1d-4858-aa18-bfad055f1e5f","block_type":"box","text":"Alight Solutions LLC","page_number":1,"box":{"x":116,"y":677,"width":146,"height":11}},{"id":"9ac2b2d5-69af-4f78-86bb-9316e53a3bf0","block_type":"box","text":"Allianz Life Financial Services, LLC","page_number":1,"box":{"x":116,"y":692,"width":250,"height":11}},{"id":"65ed8e53-0b81-4a8d-a4fe-12f0ff00db83","block_type":"box","text":"Allianz Life Insurance Company of New York","page_number":1,"box":{"x":116,"y":708,"width":314,"height":11}},{"id":"07f1c4f3-1f2c-4cf0-a450-9b9e4c4679bc","block_type":"box","text":"Allianz Life Insurance Company of North America","page_number":1,"box":{"x":116,"y":723,"width":345,"height":12}},{"id":"7c166c5e-b9b5-461d-97b7-21a0801dddb9","block_type":"box","text":"Altruist Financial LLC","page_number":1,"box":{"x":116,"y":739,"width":154,"height":9}},{"id":"2aba1269-4153-40b0-94df-6091be485bda","block_type":"box","text":"American Enterprise Investment Services, Inc.","page_number":1,"box":{"x":116,"y":754,"width":313,"height":12}},{"id":"d902d289-8956-4ef4-aeb5-6db753077911","block_type":"box","text":"American General Life Insurance Company","page_number":1,"box":{"x":116,"y":770,"width":295,"height":11}},{"id":"3bac4ade-d9f0-47df-a7e9-34436a47419a","block_type":"box","text":"American United Life Insurance Company","page_number":1,"box":{"x":116,"y":785,"width":288,"height":12}},{"id":"0702615d-3cc8-4ca4-8f7e-306b831c46b4","block_type":"box","text":"Annuity Investors Life Insurance Company","page_number":1,"box":{"x":116,"y":801,"width":292,"height":11}},{"id":"03eb67ff-9187-4d69-909a-02362a5bf370","block_type":"box","text":"Anthem Securities LLC","page_number":1,"box":{"x":116,"y":816,"width":160,"height":9}},{"id":"9db763e9-05ab-40d3-afc6-d0efda8b3f38","block_type":"box","text":"Argent Institutional Trust Company","page_number":1,"box":{"x":116,"y":832,"width":246,"height":11}},{"id":"2bb23817-5e10-4a82-b0f1-7568e494f15a","block_type":"box","text":"Ascensus Broker Dealer Services, Inc.","page_number":1,"box":{"x":116,"y":847,"width":263,"height":11}},{"id":"10ec341c-f5ba-4199-bb64-f1d79993211d","block_type":"box","text":"Ascensus, Inc.","page_number":1,"box":{"x":116,"y":863,"width":102,"height":10}},{"id":"7db05ff5-ef60-496c-9097-a725891166e4","block_type":"box","text":"Atomic Brokerage LLC","page_number":1,"box":{"x":116,"y":878,"width":165,"height":12}},{"id":"854434e7-73f8-4da6-b3bc-a5f1035fd818","block_type":"box","text":"Avantax Investment Services, LLC","page_number":1,"box":{"x":116,"y":894,"width":242,"height":10}},{"id":"dc1ffaa7-b6d9-4a32-b6fe-1727f6083a9a","block_type":"box","text":"Bancroft Capital LLC","page_number":1,"box":{"x":116,"y":909,"width":147,"height":12}},{"id":"3752d35b-3347-4b85-bcdf-530e1b6b7c13","block_type":"box","text":"Bank of America, N.A.","page_number":1,"box":{"x":520,"y":584,"width":161,"height":10}},{"id":"770dedae-d634-4a0d-bad8-bfd3500abb01","block_type":"box","text":"Bank of New York Mellon","page_number":1,"box":{"x":520,"y":599,"width":185,"height":9}},{"id":"2f9e5ec2-3026-4160-bd62-243cc2c182c3","block_type":"box","text":"Barclays Capital Inc.","page_number":1,"box":{"x":520,"y":615,"width":146,"height":11}},{"id":"140e0810-78cf-4cd4-9520-72997b57cebf","block_type":"box","text":"Benefit Plans Administrative Services, Inc.","page_number":1,"box":{"x":520,"y":630,"width":295,"height":11}},{"id":"4e677732-814c-466a-805c-b82f89cdf7d8","block_type":"box","text":"Benefit Trust Company","page_number":1,"box":{"x":520,"y":646,"width":163,"height":11}},{"id":"5327e89d-bee2-4375-a4fa-5809298914ab","block_type":"box","text":"Beta Capital Securities LLC","page_number":1,"box":{"x":520,"y":661,"width":190,"height":12}},{"id":"90c35196-0966-49b6-8bff-44da97d21605","block_type":"box","text":"bfinance US Ltd.","page_number":1,"box":{"x":520,"y":677,"width":114,"height":9}},{"id":"8d55ccf8-1098-4424-8183-f4d5bb3b2d5e","block_type":"box","text":"BlackRock Advisors, LLC","page_number":1,"box":{"x":520,"y":692,"width":179,"height":11}},{"id":"589817fb-9428-4bf9-b544-ba7b253c00e6","block_type":"box","text":"BMO Capital Markets Corp.","page_number":1,"box":{"x":520,"y":708,"width":191,"height":11}},{"id":"758caf9d-3153-424e-8da3-67f4e7f44260","block_type":"box","text":"BNP Paribas","page_number":1,"box":{"x":520,"y":723,"width":85,"height":9}},{"id":"ea1ed3b9-5d56-4708-a38f-f02985f46178","block_type":"box","text":"BNP Paribas Investment Partners UK Limited","page_number":1,"box":{"x":520,"y":739,"width":311,"height":9}},{"id":"84818ca8-8a42-4046-b5c2-70616df6b324","block_type":"box","text":"BNY Mellon, N.A.","page_number":1,"box":{"x":520,"y":754,"width":128,"height":11}},{"id":"627bc439-4b4a-40d9-8d81-8bcbc8ae0983","block_type":"box","text":"BofA Securities, Inc.","page_number":1,"box":{"x":520,"y":770,"width":141,"height":10}},{"id":"c393e442-5b70-46b9-95dc-9cca035729fc","block_type":"box","text":"BOKF, N.A.","page_number":1,"box":{"x":520,"y":785,"width":84,"height":11}},{"id":"b42e54d8-0b06-4d6e-bcb4-8ea77cbe48d0","block_type":"box","text":"Brighthouse Life Insurance Company","page_number":1,"box":{"x":520,"y":801,"width":253,"height":11}},{"id":"b1a9a6a9-907e-4140-b3e3-6534d6839c14","block_type":"box","text":"Brighthouse Life Insurance Company of NY","page_number":1,"box":{"x":520,"y":816,"width":300,"height":12}},{"id":"8c7d81d5-657c-49f8-b18a-756de4f131de","block_type":"box","text":"Broadridge Business Process Outsourcing, LLC","page_number":1,"box":{"x":520,"y":832,"width":327,"height":11}},{"id":"30ae7c1e-043c-475c-8975-56111ec93b4e","block_type":"box","text":"Brown Brothers Harriman & Co.","page_number":1,"box":{"x":520,"y":847,"width":226,"height":9}},{"id":"3ed24147-42d8-4d14-993f-bf47ec8f36cb","block_type":"box","text":"Cabrera Capital Markets, LLC","page_number":1,"box":{"x":520,"y":863,"width":210,"height":11}},{"id":"55959163-a911-4eb6-af5e-28a3a5b0ddbc","block_type":"box","text":"Capital One, N.A.","page_number":1,"box":{"x":520,"y":878,"width":126,"height":12}},{"id":"4f31b464-7a42-4140-a30c-bbff95161e41","block_type":"box","text":"Cetera Advisor Networks LLC","page_number":1,"box":{"x":520,"y":894,"width":212,"height":9}},{"id":"879b831e-5f22-400c-a934-babec49f1d73","block_type":"box","text":"Cetera Advisors LLC","page_number":1,"box":{"x":520,"y":909,"width":144,"height":9}},{"id":"3715cf0d-cfe9-4d4b-a63c-342b6bf28d97","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":1,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"0afd2389-5624-458f-8236-483419f09a3f","block_type":"box","text":"Cetera Financial Group","page_number":2,"box":{"x":116,"y":88,"width":162,"height":11}},{"id":"3118d429-a782-46d5-b1fc-7361839146d1","block_type":"box","text":"Cetera Financial Specialists LLC","page_number":2,"box":{"x":116,"y":103,"width":227,"height":12}},{"id":"b767ff0f-c367-43a7-b8f0-8f53ad0385f0","block_type":"box","text":"Cetera Investment Services LLC","page_number":2,"box":{"x":116,"y":119,"width":224,"height":9}},{"id":"54af4526-27aa-4f93-97bb-42aaec02dc1c","block_type":"box","text":"CF Secured, LLC","page_number":2,"box":{"x":116,"y":134,"width":123,"height":11}},{"id":"9a78496a-9d23-456e-b1ae-98daeb39de2a","block_type":"box","text":"Charles Schwab & Co., Inc.","page_number":2,"box":{"x":116,"y":150,"width":192,"height":10}},{"id":"50db3779-f076-49d1-8818-ed1104a894ab","block_type":"box","text":"Charles Schwab Trust Bank","page_number":2,"box":{"x":116,"y":165,"width":192,"height":9}},{"id":"45598a37-b119-46d4-aefe-f7a85a0e4e0f","block_type":"box","text":"Chicago Mercantile Exchange Inc.","page_number":2,"box":{"x":116,"y":181,"width":238,"height":11}},{"id":"50448106-5b6b-4ae4-8998-9d6316422ab6","block_type":"box","text":"CIM Investment Management, Inc.","page_number":2,"box":{"x":116,"y":196,"width":241,"height":12}},{"id":"10a32492-875f-4441-a68c-cb8d7c956142","block_type":"box","text":"Citco Securities, LLC","page_number":2,"box":{"x":116,"y":212,"width":151,"height":10}},{"id":"0725233e-4d4c-44eb-bee5-8c922862f225","block_type":"box","text":"CitiBank, National Association","page_number":2,"box":{"x":116,"y":227,"width":215,"height":11}},{"id":"1d5eaaad-62d7-484c-b9c5-15ed73159f66","block_type":"box","text":"Citigroup Global Markets, Inc.","page_number":2,"box":{"x":116,"y":243,"width":212,"height":11}},{"id":"0f3504b9-ad8b-4c7e-9987-96c725e06503","block_type":"box","text":"Citizens Bank","page_number":2,"box":{"x":116,"y":258,"width":99,"height":9}},{"id":"9ab9ad84-324d-4bd8-a3ea-d8bce6e42f77","block_type":"box","text":"Citizens Business Bank","page_number":2,"box":{"x":116,"y":274,"width":163,"height":9}},{"id":"ca8442a9-46c4-45fa-8288-b59f23294b3b","block_type":"box","text":"CME Shareholder Servicing LLC","page_number":2,"box":{"x":116,"y":289,"width":231,"height":12}},{"id":"70f78731-59a5-488c-8202-3c5d9ca74522","block_type":"box","text":"CMFG Life Insurance Company","page_number":2,"box":{"x":116,"y":305,"width":223,"height":11}},{"id":"c3fb7adf-e75a-4dbe-bdad-a311dda45b28","block_type":"box","text":"Comerica Bank","page_number":2,"box":{"x":116,"y":320,"width":109,"height":9}},{"id":"c35fd16c-8bf3-4dd2-b89c-33a42db55dbb","block_type":"box","text":"Commonwealth Financial Network","page_number":2,"box":{"x":116,"y":336,"width":242,"height":9}},{"id":"3ef3b25d-14c1-4cc6-be0a-40102cafdcad","block_type":"box","text":"Computershare Trust Company","page_number":2,"box":{"x":116,"y":351,"width":216,"height":12}},{"id":"04393b0f-a5d6-4d66-a327-8b6ce5722829","block_type":"box","text":"Conduent HR Services, LLC","page_number":2,"box":{"x":116,"y":367,"width":198,"height":10}},{"id":"a1562db1-ea00-4853-af0d-8f69b0eb50ce","block_type":"box","text":"Delaware Life Insurance Company","page_number":2,"box":{"x":116,"y":382,"width":240,"height":12}},{"id":"a7520258-9ed4-4c98-8037-b84b7452f03e","block_type":"box","text":"Delaware Trust Company","page_number":2,"box":{"x":116,"y":398,"width":178,"height":11}},{"id":"5dcd4d2e-5494-4b5c-8d84-f75f5c9c8954","block_type":"box","text":"Deutsche Bank AG","page_number":2,"box":{"x":116,"y":413,"width":135,"height":9}},{"id":"cd32aac0-7262-4890-8275-380076b90ed9","block_type":"box","text":"Deutsche Bank Trust Company Americas","page_number":2,"box":{"x":116,"y":429,"width":285,"height":11}},{"id":"f6b1d529-ce59-4e76-b059-2a5c40e06983","block_type":"box","text":"Digital Retirement Solutions, Inc.","page_number":2,"box":{"x":116,"y":444,"width":232,"height":12}},{"id":"63ff9a8f-48b3-42de-854f-0b55cee774c8","block_type":"box","text":"Dunham & Associates Investment Counsel, Inc.","page_number":2,"box":{"x":116,"y":460,"width":328,"height":10}},{"id":"ba64524f-9ebb-4a12-b3b5-24e6423b8b93","block_type":"box","text":"Dynasty Financial Partners LLC","page_number":2,"box":{"x":116,"y":475,"width":223,"height":12}},{"id":"1f44a96f-88b8-4979-923d-0eaed27ea6d7","block_type":"box","text":"Edward D. Jones & Co., L.P.","page_number":2,"box":{"x":116,"y":491,"width":200,"height":10}},{"id":"c5887c8e-7a29-4eb1-be92-904f38eb170b","block_type":"box","text":"Empire Fidelity Investments Life Insurance","page_number":2,"box":{"x":116,"y":506,"width":298,"height":12}},{"id":"87de3d25-8433-46e2-aa47-f037985e0475","block_type":"box","text":"Company","page_number":2,"box":{"x":116,"y":522,"width":69,"height":11}},{"id":"3e9f032a-f100-4221-bd64-62732c078487","block_type":"box","text":"Empower Annuity Insurance Company of America","page_number":2,"box":{"x":116,"y":537,"width":349,"height":12}},{"id":"01e94499-ea94-4b17-ba8d-f89d88a14d8b","block_type":"box","text":"Empower Financial Services, Inc.","page_number":2,"box":{"x":116,"y":553,"width":232,"height":11}},{"id":"eee86749-fe81-4d25-ac2c-3c10e44279ec","block_type":"box","text":"Empower Life & Annuity Insurance Company of","page_number":2,"box":{"x":116,"y":568,"width":336,"height":12}},{"id":"e322a406-6f1e-4f52-97d4-14d5279a05d7","block_type":"box","text":"New York","page_number":2,"box":{"x":116,"y":584,"width":74,"height":9}},{"id":"95043b6c-4d2c-4af1-9ae7-3c19267363a3","block_type":"box","text":"Empower Plan Services, LLC","page_number":2,"box":{"x":116,"y":599,"width":205,"height":12}},{"id":"7ad46d9b-624e-43e7-9f2c-acef8c894f31","block_type":"box","text":"Envestnet Asset Management, Inc.","page_number":2,"box":{"x":116,"y":615,"width":238,"height":11}},{"id":"05fe2e1c-194e-48ea-a5a3-fae3ccd08267","block_type":"box","text":"Equitable Advisors, LLC","page_number":2,"box":{"x":116,"y":630,"width":174,"height":12}},{"id":"9b3f10f2-5baf-44b9-86dc-f836b0bcf193","block_type":"box","text":"Equitable Life Insurance Company","page_number":2,"box":{"x":116,"y":646,"width":240,"height":11}},{"id":"53f297f8-ace5-4c3c-950a-77ced043e4c2","block_type":"box","text":"E*trade Savings Bank","page_number":2,"box":{"x":116,"y":661,"width":150,"height":12}},{"id":"21cf0490-bd7f-49ce-9f20-cd0b2f063c1c","block_type":"box","text":"Federal Deposit Insurance Corporation","page_number":2,"box":{"x":116,"y":677,"width":262,"height":11}},{"id":"8ff42566-b514-45ef-859f-a39fb8a556fc","block_type":"box","text":"Fidelity Brokerage Services LLC","page_number":2,"box":{"x":116,"y":692,"width":223,"height":12}},{"id":"f6e45279-d988-472a-bf35-de445a41950b","block_type":"box","text":"Fidelity Investments Institutional Operations","page_number":2,"box":{"x":116,"y":708,"width":301,"height":11}},{"id":"9db0b4e8-d242-422a-8d73-c01381e60679","block_type":"box","text":"Company, Inc.","page_number":2,"box":{"x":116,"y":723,"width":98,"height":12}},{"id":"f38689d6-a41c-45c4-afe0-47865aa468ca","block_type":"box","text":"Fidelity Investments Life Insurance Company","page_number":2,"box":{"x":116,"y":739,"width":309,"height":11}},{"id":"33d31edd-8e79-4257-a04b-f70da2d2c690","block_type":"box","text":"Fifth Third Securities, Inc.","page_number":2,"box":{"x":116,"y":754,"width":178,"height":11}},{"id":"1e30bdbf-d171-4a03-bd39-f38cce90baa7","block_type":"box","text":"First Allied Securities, Inc.","page_number":2,"box":{"x":116,"y":770,"width":181,"height":10}},{"id":"1251c6b8-8907-498c-908c-95e20639fad6","block_type":"box","text":"First Command Financial Planning, Inc.","page_number":2,"box":{"x":116,"y":785,"width":269,"height":12}},{"id":"13b1de7d-9662-4672-b294-d7746038baff","block_type":"box","text":"First Hawaiian Bank","page_number":2,"box":{"x":116,"y":801,"width":139,"height":9}},{"id":"53dfa990-f77e-4f9a-a84d-13bfec194493","block_type":"box","text":"First Republic Bank","page_number":2,"box":{"x":116,"y":816,"width":136,"height":12}},{"id":"d4329955-d8e3-4202-b901-b294f5e9b304","block_type":"box","text":"First Security Benefit Life Insurance and Annuity","page_number":2,"box":{"x":116,"y":832,"width":339,"height":11}},{"id":"cd61fc28-ec24-4dff-988c-07a00f18e4ec","block_type":"box","text":"Company of New York","page_number":2,"box":{"x":116,"y":847,"width":162,"height":12}},{"id":"6575ec19-ae8e-4658-861a-d37edc28936c","block_type":"box","text":"First Symetra National Life Insurance Company of","page_number":2,"box":{"x":116,"y":863,"width":348,"height":11}},{"id":"01545bc5-9ec7-4569-ab04-6b6efd9966c4","block_type":"box","text":"New York","page_number":2,"box":{"x":116,"y":878,"width":74,"height":9}},{"id":"d40b418c-e337-4afe-b59b-a501b4df9dfc","block_type":"box","text":"First-Citizens Bank & Trust Company","page_number":2,"box":{"x":116,"y":894,"width":262,"height":11}},{"id":"718ac9b6-b3ec-495d-87d0-1035b410aff8","block_type":"box","text":"FIS Brokerage & Securities Services LLC","page_number":2,"box":{"x":116,"y":909,"width":283,"height":12}},{"id":"ed4f2267-42af-4ad8-87d5-90c79d3bf02e","block_type":"box","text":"FNEX Capital, LLC","page_number":2,"box":{"x":520,"y":88,"width":141,"height":11}},{"id":"792eeb1e-f48a-472a-9ca1-47e02269e393","block_type":"box","text":"Forethought Life Insurance Company","page_number":2,"box":{"x":520,"y":103,"width":258,"height":12}},{"id":"320d0203-b302-47ac-a99c-d8959c09a638","block_type":"box","text":"FSC Securities Corporation","page_number":2,"box":{"x":520,"y":119,"width":190,"height":11}},{"id":"c04d16e1-f88e-4570-a971-ca8c23e614ac","block_type":"box","text":"Genworth Life and Annuity Insurance Company","page_number":2,"box":{"x":520,"y":134,"width":331,"height":12}},{"id":"78759898-2409-4b07-906c-3e62e8cb7321","block_type":"box","text":"Genworth Life Insurance Company of New York","page_number":2,"box":{"x":520,"y":150,"width":336,"height":11}},{"id":"6a42d5f3-054b-4b19-8f6f-2f7284229ccb","block_type":"box","text":"Global Atlantic Distributors, LLC","page_number":2,"box":{"x":520,"y":165,"width":233,"height":11}},{"id":"43b47f08-1ef3-4a69-8e0b-f4ef87ed7fbe","block_type":"box","text":"Goldman Sachs & Co.","page_number":2,"box":{"x":520,"y":181,"width":156,"height":9}},{"id":"e6626862-6923-4845-8b93-7f0ff157db7e","block_type":"box","text":"Great Pacific Securities, LLC","page_number":2,"box":{"x":520,"y":196,"width":203,"height":11}},{"id":"7ec45656-a69b-48d5-9ecb-ee5a867e0a2d","block_type":"box","text":"Guardian Insurance & Annuity Co., Inc.","page_number":2,"box":{"x":520,"y":212,"width":275,"height":11}},{"id":"28e173a5-e2b0-4d40-9a63-d5880b662d67","block_type":"box","text":"Hancock Whitney Bank","page_number":2,"box":{"x":520,"y":227,"width":166,"height":12}},{"id":"3e2067f1-240d-4fec-9dec-07fe4fe2dc59","block_type":"box","text":"Hartford Funds Management Company","page_number":2,"box":{"x":520,"y":243,"width":269,"height":11}},{"id":"7b78cdc6-62c4-449f-9d7f-77bf1d5d4fdc","block_type":"box","text":"Hartford Securities Distribution Company, Inc.","page_number":2,"box":{"x":520,"y":258,"width":322,"height":12}},{"id":"532c0199-8eb7-4118-a98d-305cb1137204","block_type":"box","text":"Hazeltree Fund Services, Inc.","page_number":2,"box":{"x":520,"y":274,"width":203,"height":10}},{"id":"244d1976-73d6-4864-aeab-22a82076ef69","block_type":"box","text":"Hightower Securities, Inc.","page_number":2,"box":{"x":520,"y":289,"width":181,"height":12}},{"id":"ac0462ba-4a4e-42b8-938a-5d4062e1ec50","block_type":"box","text":"Hilltop Securities Inc.","page_number":2,"box":{"x":520,"y":305,"width":152,"height":11}},{"id":"1922973f-4197-432e-bd50-850dace03915","block_type":"box","text":"HSBC Bank USA, N.A.","page_number":2,"box":{"x":520,"y":320,"width":166,"height":11}},{"id":"e923dc25-dc2d-4d31-b370-59cabf520189","block_type":"box","text":"Huntington Securities, Inc.","page_number":2,"box":{"x":520,"y":336,"width":186,"height":11}},{"id":"d187c191-5780-4414-8a58-607b1735086b","block_type":"box","text":"Institutional Cash Distributors, LLC","page_number":2,"box":{"x":520,"y":351,"width":249,"height":11}},{"id":"c113836e-63fd-4bf6-95bd-0293c194b223","block_type":"box","text":"Integrity Life Insurance Company","page_number":2,"box":{"x":520,"y":367,"width":234,"height":11}},{"id":"e66260c1-2448-4ea0-bbcb-01c8a264f180","block_type":"box","text":"Interactive Brokers, LLC","page_number":2,"box":{"x":520,"y":382,"width":174,"height":11}},{"id":"2807a7ce-3e3b-41a4-90a8-3baa120f9c20","block_type":"box","text":"Investment Trust of California","page_number":2,"box":{"x":520,"y":398,"width":209,"height":9}},{"id":"0e23e749-221d-4430-9cf8-f93a4e5bc169","block_type":"box","text":"J.P. Morgan Institutional Investments Inc.","page_number":2,"box":{"x":520,"y":413,"width":287,"height":12}},{"id":"335c70ea-4687-4164-aae4-19fbdf8212b9","block_type":"box","text":"J.P. Morgan Securities LLC","page_number":2,"box":{"x":520,"y":429,"width":193,"height":11}},{"id":"3b301f0c-f905-4600-b223-74473e47a7f4","block_type":"box","text":"Jefferies LLC","page_number":2,"box":{"x":520,"y":444,"width":97,"height":9}},{"id":"fa600baa-6da3-44b5-b745-650b38fa600d","block_type":"box","text":"Jefferson National Life Insurance Company","page_number":2,"box":{"x":520,"y":460,"width":300,"height":11}},{"id":"089f8af8-8407-44b8-9a77-d03bae65817b","block_type":"box","text":"Jefferson National Life Insurance Company of New","page_number":2,"box":{"x":520,"y":475,"width":354,"height":12}},{"id":"7a359dbf-a714-4fae-b124-548e4e06dfab","block_type":"box","text":"York","page_number":2,"box":{"x":520,"y":491,"width":39,"height":9}},{"id":"6711f816-767e-41af-833e-cf14ed8de6e6","block_type":"box","text":"John Hancock Life Insurance Company (U.S.A.)","page_number":2,"box":{"x":520,"y":506,"width":333,"height":12}},{"id":"2ff6f6b6-2180-4966-be1c-e066aec1c6c4","block_type":"box","text":"John Hancock Life Insurance Company of New York","page_number":2,"box":{"x":520,"y":522,"width":365,"height":11}},{"id":"2d6c4e7f-1a47-46ab-9d76-4fdc4d2d0505","block_type":"box","text":"John Hancock Trust Company","page_number":2,"box":{"x":520,"y":537,"width":209,"height":12}},{"id":"d8dc0926-797d-4ea1-852f-1fb96ef63067","block_type":"box","text":"JPMorgan Chase Bank, N.A.","page_number":2,"box":{"x":520,"y":553,"width":199,"height":11}},{"id":"746c7393-2271-43ac-a942-70c9c7a2c990","block_type":"box","text":"Kestra Investment Services, LLC","page_number":2,"box":{"x":520,"y":568,"width":229,"height":11}},{"id":"a2ca70dc-abf4-4df5-82f4-6194439fe0dc","block_type":"box","text":"Lincoln Financial Advisors Corporation","page_number":2,"box":{"x":520,"y":584,"width":274,"height":11}},{"id":"ca36a7b0-91c2-4c36-9dd1-82b7943f6362","block_type":"box","text":"Lincoln Financial Securities Corporation","page_number":2,"box":{"x":520,"y":599,"width":280,"height":12}},{"id":"069b5e82-fd82-455a-8890-8b85c7230d8e","block_type":"box","text":"Lincoln Life & Annuity Company of New York","page_number":2,"box":{"x":520,"y":615,"width":328,"height":11}},{"id":"7340a2c9-60ee-4285-bd74-9bb65c71b616","block_type":"box","text":"Lincoln National Life Insurance Company","page_number":2,"box":{"x":520,"y":630,"width":290,"height":12}},{"id":"3d5011ea-c8c4-41ad-a6cf-9e6934bd6d95","block_type":"box","text":"Lincoln Retirement Services LLC","page_number":2,"box":{"x":520,"y":646,"width":233,"height":9}},{"id":"f8c99792-5cee-4482-b9df-d2b31cdf8ae5","block_type":"box","text":"Lombard International Life Assurance Company","page_number":2,"box":{"x":520,"y":661,"width":328,"height":12}},{"id":"7d3875b9-79af-4b8b-aabd-a6cc69c4e5fe","block_type":"box","text":"LPL Financial LLC","page_number":2,"box":{"x":520,"y":677,"width":132,"height":9}},{"id":"3cfc39e9-f3ba-4adf-80ff-bc25dd70fab5","block_type":"box","text":"M&T Securities Inc.","page_number":2,"box":{"x":520,"y":692,"width":138,"height":9}},{"id":"c8b97482-6e48-4d2e-a9b2-759d6074aafe","block_type":"box","text":"Manufacturers and Traders Trust Company","page_number":2,"box":{"x":520,"y":708,"width":291,"height":11}},{"id":"6573d60e-368c-4f68-be06-abaf1864bb4e","block_type":"box","text":"Massachusetts Mutual Life Insurance Company","page_number":2,"box":{"x":520,"y":723,"width":321,"height":12}},{"id":"09a1d92e-2b45-4c71-bcbd-be548d21fb3c","block_type":"box","text":"Members Life Insurance Company","page_number":2,"box":{"x":520,"y":739,"width":235,"height":11}},{"id":"3c783a47-1479-45ed-bfc1-22f6bd00cb75","block_type":"box","text":"Merrill Lynch, Pierce, Fenner & Smith Incorporated","page_number":2,"box":{"x":520,"y":754,"width":353,"height":12}},{"id":"c6df0a1b-d55a-4bce-b891-570a256746e4","block_type":"box","text":"Metavante Corporation","page_number":2,"box":{"x":520,"y":770,"width":156,"height":11}},{"id":"f146df66-aedd-4d06-aea4-993635b741b3","block_type":"box","text":"Metropolitan Life Insurance Company","page_number":2,"box":{"x":520,"y":785,"width":259,"height":12}},{"id":"bfaf8a98-baeb-4d7e-888a-87eb35f67998","block_type":"box","text":"Mid Atlantic Clearing & Settlement Corporation","page_number":2,"box":{"x":520,"y":801,"width":328,"height":11}},{"id":"87a8ff89-1e95-482d-b999-5998506235fb","block_type":"box","text":"Midland Life Insurance Company","page_number":2,"box":{"x":520,"y":816,"width":228,"height":12}},{"id":"3cc12279-80b5-4f38-b45f-ea121c74696b","block_type":"box","text":"Minnesota Life Insurance Company","page_number":2,"box":{"x":520,"y":832,"width":247,"height":11}},{"id":"bc1f000d-b5c9-407b-9f8d-e34bee044f1c","block_type":"box","text":"Mischler Financial Group","page_number":2,"box":{"x":520,"y":847,"width":178,"height":12}},{"id":"363066d9-8333-4f4a-9db6-647c749bb9fb","block_type":"box","text":"Mizuho Securities USA Inc.","page_number":2,"box":{"x":520,"y":863,"width":195,"height":9}},{"id":"7119993f-bc98-4263-bba1-0006d8d2e151","block_type":"box","text":"MML Distributors, LLC","page_number":2,"box":{"x":520,"y":878,"width":169,"height":11}},{"id":"061ebb65-0d7a-40ae-9a3c-840fd5185ae4","block_type":"box","text":"MML Investors Services, LLC","page_number":2,"box":{"x":520,"y":894,"width":212,"height":10}},{"id":"7e4f447a-348a-4028-baf6-00ea644cacfa","block_type":"box","text":"Morgan Stanley & Co. LLC","page_number":2,"box":{"x":520,"y":909,"width":189,"height":12}},{"id":"fe4d6358-e91c-4edd-8ec2-5c2df47b80c0","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":2,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"05470436-b7a5-4e98-9636-408d3988d7c0","block_type":"box","text":"Morgan Stanley Distribution, Inc.","page_number":3,"box":{"x":116,"y":88,"width":232,"height":11}},{"id":"3407d026-14a2-41c1-be33-049b0724cec1","block_type":"box","text":"Morgan Stanley Smith Barney LLC","page_number":3,"box":{"x":116,"y":103,"width":245,"height":12}},{"id":"396b78cf-8c39-4779-af3b-b9f72c3f8046","block_type":"box","text":"MUFG Union Bank, National Association","page_number":3,"box":{"x":116,"y":119,"width":289,"height":10}},{"id":"c98cd059-f947-4835-90d9-d68f7192b1b8","block_type":"box","text":"Nassau Life Insurance Company","page_number":3,"box":{"x":116,"y":134,"width":224,"height":12}},{"id":"60da67de-abd4-4d14-8691-debe03644ece","block_type":"box","text":"National Financial Services LLC","page_number":3,"box":{"x":116,"y":150,"width":226,"height":9}},{"id":"d5fe510b-8116-4a32-bd2a-0040a1af7000","block_type":"box","text":"National Integrity Life Insurance Company","page_number":3,"box":{"x":116,"y":165,"width":296,"height":12}},{"id":"b73f087b-1564-4706-8ae3-9d38862bcda7","block_type":"box","text":"National Life Insurance Company","page_number":3,"box":{"x":116,"y":181,"width":234,"height":11}},{"id":"0528d401-fd7e-4c2c-8432-4b2f112fbed1","block_type":"box","text":"Nationwide Financial Services, Inc.","page_number":3,"box":{"x":116,"y":196,"width":245,"height":11}},{"id":"32181687-0ad8-4aa3-832c-4c2c8af09faa","block_type":"box","text":"Nationwide Fund Distributors LLC","page_number":3,"box":{"x":116,"y":212,"width":242,"height":9}},{"id":"dcb87a56-c01f-4a5a-8ee8-d47c6e33452f","block_type":"box","text":"Nationwide Retirement Solutions","page_number":3,"box":{"x":116,"y":227,"width":230,"height":9}},{"id":"e5d5d1fe-9527-4b20-be78-0ffa6f02edd1","block_type":"box","text":"NCB Federal Savings Bank","page_number":3,"box":{"x":116,"y":243,"width":191,"height":11}},{"id":"59bba1f3-e1c8-4a59-b17a-2df9c4bf642b","block_type":"box","text":"New England Pension Plan Systems, LLC","page_number":3,"box":{"x":116,"y":258,"width":288,"height":12}},{"id":"fa247705-6eba-45fc-ad27-1a4d3a2275c0","block_type":"box","text":"New York Life Insurance and Annuity Corporation","page_number":3,"box":{"x":116,"y":274,"width":350,"height":11}},{"id":"0ebb2ce4-2fe8-42de-a7bc-573f8ed97adb","block_type":"box","text":"Newport Retirement Services, Inc.","page_number":3,"box":{"x":116,"y":289,"width":237,"height":12}},{"id":"31fc714f-c869-47a8-ba80-2c69f31a5d12","block_type":"box","text":"Northbrook Bank & Trust Company","page_number":3,"box":{"x":116,"y":305,"width":249,"height":11}},{"id":"00aca498-b58e-4165-9119-d2601875c86d","block_type":"box","text":"Northern Trust Company","page_number":3,"box":{"x":116,"y":320,"width":174,"height":12}},{"id":"9ac84d77-6e5f-440d-9f3b-8552d73eb0d7","block_type":"box","text":"Northwestern Mutual Investment Services, LLC","page_number":3,"box":{"x":116,"y":336,"width":329,"height":10}},{"id":"9205bdc8-2809-47da-8a12-21f43f94a80b","block_type":"box","text":"Northwestern Mutual Life Insurance Company","page_number":3,"box":{"x":116,"y":351,"width":320,"height":12}},{"id":"e454b765-2d50-4e43-b5be-e98aabed4656","block_type":"box","text":"NYLife Distributors LLC","page_number":3,"box":{"x":116,"y":367,"width":177,"height":9}},{"id":"585377a7-957b-4a6b-a6e0-d89a8216f4c9","block_type":"box","text":"Oppenheimer & Co., Inc.","page_number":3,"box":{"x":116,"y":382,"width":175,"height":12}},{"id":"1531f06e-865a-4d1d-98ab-1738e31e64fc","block_type":"box","text":"Orion Advisor Services, LLC","page_number":3,"box":{"x":116,"y":398,"width":203,"height":10}},{"id":"984088eb-ff0c-471f-9b50-6fc03a94a2a8","block_type":"box","text":"Osaic Wealth, Inc.","page_number":3,"box":{"x":116,"y":413,"width":129,"height":11}},{"id":"0066c26a-6889-4256-8457-f0a3836ec1c8","block_type":"box","text":"Pacific Life & Annuity Company","page_number":3,"box":{"x":116,"y":429,"width":230,"height":11}},{"id":"d4d0ca3f-e066-4f49-871d-15ab25ac23e5","block_type":"box","text":"Pacific Life Insurance Company","page_number":3,"box":{"x":116,"y":444,"width":223,"height":12}},{"id":"6c646501-120d-414f-8faa-923b8c0cb9c9","block_type":"box","text":"Pacific Select Distributors, LLC","page_number":3,"box":{"x":116,"y":460,"width":221,"height":10}},{"id":"10f10681-5e3a-4fdb-8219-61220e828d66","block_type":"box","text":"Park Avenue Securities LLC","page_number":3,"box":{"x":116,"y":475,"width":198,"height":9}},{"id":"91f7e653-ca7a-4039-ba81-ee81909a879f","block_type":"box","text":"Penserra Securities LLC","page_number":3,"box":{"x":116,"y":491,"width":169,"height":9}},{"id":"972c48ca-64fd-45d1-a6e8-742b666d4f5a","block_type":"box","text":"Pershing LLC","page_number":3,"box":{"x":116,"y":506,"width":99,"height":12}},{"id":"c58bed36-7f44-447b-98f0-634db991dedf","block_type":"box","text":"PFPC Inc.","page_number":3,"box":{"x":116,"y":522,"width":73,"height":9}},{"id":"4e08b732-96e1-4570-b603-4e60832b6efc","block_type":"box","text":"Piper Jaffray & Co.","page_number":3,"box":{"x":116,"y":537,"width":136,"height":12}},{"id":"3280c68c-7043-4115-bb31-4b1c8d4fee3b","block_type":"box","text":"PNC Bank, National Association","page_number":3,"box":{"x":116,"y":553,"width":226,"height":10}},{"id":"6155dd82-3956-4c15-8119-3ae6a1d0faf1","block_type":"box","text":"PNC Capital Markets LLC","page_number":3,"box":{"x":116,"y":568,"width":185,"height":12}},{"id":"9dddb4ec-5b09-45fb-8f05-27f29d973b53","block_type":"box","text":"PNC Investments LLC","page_number":3,"box":{"x":116,"y":584,"width":158,"height":9}},{"id":"e95efa31-8d71-4207-935e-46fe321eafaa","block_type":"box","text":"Principal Bank","page_number":3,"box":{"x":116,"y":599,"width":105,"height":12}},{"id":"277ffb70-6cb5-4f1a-b6b5-ba018c5f0140","block_type":"box","text":"Principal Life Insurance Company","page_number":3,"box":{"x":116,"y":615,"width":237,"height":11}},{"id":"7776c296-d4a2-4ab9-bcc7-ed8c1cd5db64","block_type":"box","text":"Protective Life and Annuity Insurance Company","page_number":3,"box":{"x":116,"y":630,"width":332,"height":12}},{"id":"aa3ee148-c49c-446a-ad9a-5be0d631c44c","block_type":"box","text":"Protective Life Insurance Company","page_number":3,"box":{"x":116,"y":646,"width":244,"height":11}},{"id":"56d95649-0088-48a9-b0d3-7d511c01a738","block_type":"box","text":"Pruco Life Insurance Company","page_number":3,"box":{"x":116,"y":661,"width":210,"height":12}},{"id":"15d2c92c-2ac2-4629-8a75-3439cb4f5108","block_type":"box","text":"Pruco Life Insurance Company of New Jersey","page_number":3,"box":{"x":116,"y":677,"width":311,"height":11}},{"id":"73ddc0c5-974b-4693-a87a-e09418b066f2","block_type":"box","text":"Prudential Annuities Distributors, Inc.","page_number":3,"box":{"x":116,"y":692,"width":257,"height":11}},{"id":"8e9bb52d-7ad8-4344-a76d-63f22e84a660","block_type":"box","text":"Prudential Insurance Company of America","page_number":3,"box":{"x":116,"y":708,"width":289,"height":11}},{"id":"9da31dd3-d9a4-41cc-970f-f2b6e2d87028","block_type":"box","text":"Raymond James & Associates, Inc.","page_number":3,"box":{"x":116,"y":723,"width":237,"height":12}},{"id":"0fe21455-b3cb-4e84-8c27-d597b0f1471f","block_type":"box","text":"Raymond James Financial Services, Inc.","page_number":3,"box":{"x":116,"y":739,"width":272,"height":11}},{"id":"e24acdef-98da-4de3-850f-63fe13fde952","block_type":"box","text":"RBC Capital Markets, LLC","page_number":3,"box":{"x":116,"y":754,"width":185,"height":12}},{"id":"16d20e53-444c-4416-93f6-f8690c5f7e58","block_type":"box","text":"Regions Bank","page_number":3,"box":{"x":116,"y":770,"width":95,"height":11}},{"id":"d6157a9c-da17-4375-917f-522712678969","block_type":"box","text":"Reliance Trust Company","page_number":3,"box":{"x":116,"y":785,"width":168,"height":12}},{"id":"5b8ecb9d-3669-4c84-b6f4-dda155d66960","block_type":"box","text":"Reliastar Life Insurance Company","page_number":3,"box":{"x":116,"y":801,"width":231,"height":11}},{"id":"1821590e-fd57-4f56-b501-d26075142c89","block_type":"box","text":"Reliastar Life Insurance Company of New York","page_number":3,"box":{"x":116,"y":816,"width":325,"height":12}},{"id":"35432084-959b-4aad-b648-3f2cc0baad99","block_type":"box","text":"RiverSource Distributors, Inc.","page_number":3,"box":{"x":116,"y":832,"width":207,"height":10}},{"id":"106217bc-0b03-48b3-99e7-ccb5ec0710f7","block_type":"box","text":"RiverSource Life Insurance Co. of New York","page_number":3,"box":{"x":116,"y":847,"width":311,"height":9}},{"id":"1c94314a-2324-4ff9-beb9-8d51df8766e4","block_type":"box","text":"RiverSource Life Insurance Company","page_number":3,"box":{"x":116,"y":863,"width":260,"height":11}},{"id":"a58d1b3b-caab-44d0-8b1a-21aba07191fa","block_type":"box","text":"SagePoint Financial, Inc.","page_number":3,"box":{"x":116,"y":878,"width":173,"height":12}},{"id":"f0621c5e-0250-4d1a-96d3-4d3d4a62857c","block_type":"box","text":"Sammons Retirement Solutions, Inc.","page_number":3,"box":{"x":116,"y":894,"width":252,"height":10}},{"id":"1c4a69da-9f96-457b-bd1e-f1bd4d09a3d2","block_type":"box","text":"Sanctuary Wealth Group, LLC","page_number":3,"box":{"x":116,"y":909,"width":207,"height":12}},{"id":"3230413b-d039-4735-a10c-0bd118562fe3","block_type":"box","text":"Santander Bank, N.A.","page_number":3,"box":{"x":520,"y":88,"width":152,"height":10}},{"id":"9e299615-4eb5-42fd-b518-ddb223614250","block_type":"box","text":"Saturna Trust Company","page_number":3,"box":{"x":520,"y":103,"width":165,"height":12}},{"id":"54581ebe-1f11-4db4-9d30-092a2d58e064","block_type":"box","text":"Securities America, Inc.","page_number":3,"box":{"x":520,"y":119,"width":167,"height":10}},{"id":"14867358-d429-4bdc-a456-dafc45964f65","block_type":"box","text":"Securities Finance Trust Company","page_number":3,"box":{"x":520,"y":134,"width":238,"height":12}},{"id":"85ba1189-6610-4358-bcea-ef927e49109f","block_type":"box","text":"Security Benefit Life Insurance Company","page_number":3,"box":{"x":520,"y":150,"width":286,"height":11}},{"id":"e24318d3-21de-4530-a302-b64690d4f959","block_type":"box","text":"Security Financial Resources, Inc.","page_number":3,"box":{"x":520,"y":165,"width":235,"height":12}},{"id":"9f13172a-8bf4-45d5-9ecb-3fda1e78284b","block_type":"box","text":"Security Life of Denver Insurance Company","page_number":3,"box":{"x":520,"y":181,"width":304,"height":11}},{"id":"839b8c68-38e6-476d-9a8b-16cdbd1acc40","block_type":"box","text":"SEI Private Trust Company","page_number":3,"box":{"x":520,"y":196,"width":191,"height":12}},{"id":"a4c47fe3-bd0c-4fa6-9eee-b0fff7f33049","block_type":"box","text":"SG Americas Securities, LLC","page_number":3,"box":{"x":520,"y":212,"width":205,"height":10}},{"id":"5204ae35-3cbd-431a-af14-b77e2228df4a","block_type":"box","text":"Silicon Valley Bank","page_number":3,"box":{"x":520,"y":227,"width":141,"height":12}},{"id":"f8c33c5c-239e-4df9-a7ae-75594bcee0d3","block_type":"box","text":"Standard Insurance Company","page_number":3,"box":{"x":520,"y":243,"width":203,"height":11}},{"id":"a740bb58-f67a-4c29-a0a2-4ced57ee3df0","block_type":"box","text":"Standard Retirement Services, Inc.","page_number":3,"box":{"x":520,"y":258,"width":239,"height":11}},{"id":"2f307e55-fe13-449e-9851-775affa5d911","block_type":"box","text":"State Farm Life and Accident Assurance Company","page_number":3,"box":{"x":520,"y":274,"width":347,"height":11}},{"id":"c5f1dd51-d266-492a-995c-5c737488918d","block_type":"box","text":"State Farm Life Insurance Company","page_number":3,"box":{"x":520,"y":289,"width":249,"height":12}},{"id":"89e864cf-b137-4950-9fb8-3feff23bdac6","block_type":"box","text":"State Farm VP Management Corp.","page_number":3,"box":{"x":520,"y":305,"width":237,"height":11}},{"id":"0e923107-e374-4364-b2c8-c5c3592974e2","block_type":"box","text":"State Street Bank and Trust Company","page_number":3,"box":{"x":520,"y":320,"width":259,"height":12}},{"id":"057bbd7b-f761-4bb3-bc22-78247444e4db","block_type":"box","text":"State Street Global Markets, LLC","page_number":3,"box":{"x":520,"y":336,"width":231,"height":10}},{"id":"462423ff-910d-4d92-889c-abd537653a47","block_type":"box","text":"Stern Brothers & Co.","page_number":3,"box":{"x":520,"y":351,"width":147,"height":9}},{"id":"81b0515a-9069-4467-8765-8d3287db6a1e","block_type":"box","text":"Stifel, Nicolaus & Company, Incorporated","page_number":3,"box":{"x":520,"y":367,"width":290,"height":11}},{"id":"8325c727-01a0-41f9-af18-8df79eb7fc51","block_type":"box","text":"Summit Brokerage Services, Inc.","page_number":3,"box":{"x":520,"y":382,"width":227,"height":12}},{"id":"35a89661-79fb-4f82-81c6-3a99db43c68d","block_type":"box","text":"SVB Asset Management","page_number":3,"box":{"x":520,"y":398,"width":170,"height":11}},{"id":"4cb755e6-66a6-461a-9a4c-1b7c9378977b","block_type":"box","text":"Symetra Life Insurance Company","page_number":3,"box":{"x":520,"y":413,"width":232,"height":12}},{"id":"4631173f-1276-4fd8-a101-08a9f67f34cc","block_type":"box","text":"Syntal Capital Partners, LLC","page_number":3,"box":{"x":520,"y":429,"width":200,"height":11}},{"id":"6757be51-b97a-4856-97eb-51ca284cb9c3","block_type":"box","text":"T. Rowe Price Retirement Plan Services, Inc.","page_number":3,"box":{"x":520,"y":444,"width":310,"height":11}},{"id":"e5b05339-28c5-47bb-9a2e-643c7f90ae39","block_type":"box","text":"Talcott Resolution Life and Annuity Insurance","page_number":3,"box":{"x":520,"y":460,"width":319,"height":11}},{"id":"2a6f31ac-a16f-41cb-8c80-e31899d01d84","block_type":"box","text":"Company","page_number":3,"box":{"x":520,"y":475,"width":69,"height":12}},{"id":"3a0a5745-082c-44e4-949b-9c8148187d98","block_type":"box","text":"Talcott Resolution Life Insurance Company","page_number":3,"box":{"x":520,"y":491,"width":301,"height":11}},{"id":"c6896981-080d-4c75-b0df-5d0753fdb974","block_type":"box","text":"TD Ameritrade Clearing, Inc.","page_number":3,"box":{"x":520,"y":506,"width":204,"height":12}},{"id":"cfdbb664-d05d-4e56-9ed4-36a8d39716ef","block_type":"box","text":"TD Ameritrade, Inc.","page_number":3,"box":{"x":520,"y":522,"width":141,"height":10}},{"id":"a79f3441-13c1-40a1-8885-297bba017e05","block_type":"box","text":"TD Prime Services (US) LLC","page_number":3,"box":{"x":520,"y":537,"width":205,"height":11}},{"id":"f589c4e3-7516-416a-bec2-686ae02ff99b","block_type":"box","text":"Teachers Insurance and Annuity Association of","page_number":3,"box":{"x":520,"y":553,"width":325,"height":11}},{"id":"8e2b163d-adc5-457a-ad7a-f227f2c60456","block_type":"box","text":"America","page_number":3,"box":{"x":520,"y":568,"width":62,"height":9}},{"id":"3a3a0045-f5af-4717-9618-dffaee492c55","block_type":"box","text":"Tigress Financial Partners, LLC","page_number":3,"box":{"x":520,"y":584,"width":220,"height":11}},{"id":"b2c8603b-9092-4caa-ab4a-4598a68c29e3","block_type":"box","text":"Transamerica Financial Life Insurance Company","page_number":3,"box":{"x":520,"y":599,"width":335,"height":12}},{"id":"3d281131-039d-4047-b5d1-36001b4dbd93","block_type":"box","text":"Transamerica Life Insurance Company","page_number":3,"box":{"x":520,"y":615,"width":268,"height":11}},{"id":"b1361c1c-5993-404b-b0b0-528dfad8f055","block_type":"box","text":"Treasury Brokerage","page_number":3,"box":{"x":520,"y":630,"width":138,"height":12}},{"id":"ea7d4908-2655-4f8a-8599-1b42edda8b80","block_type":"box","text":"Triad Advisors, LLC","page_number":3,"box":{"x":520,"y":646,"width":146,"height":10}},{"id":"45a20942-833d-4bf5-a331-f8dbe871aa19","block_type":"box","text":"Truist Bank","page_number":3,"box":{"x":520,"y":661,"width":80,"height":9}},{"id":"9bb878c4-0ffe-4831-8802-f737c10adb49","block_type":"box","text":"U.S. Bancorp Investments, Inc.","page_number":3,"box":{"x":520,"y":677,"width":210,"height":11}},{"id":"81a66d49-5515-4250-8778-109bfdf6c73a","block_type":"box","text":"U.S. Bank, National Association","page_number":3,"box":{"x":520,"y":692,"width":219,"height":11}},{"id":"858845b5-e048-48b7-80d0-a33b884df7cc","block_type":"box","text":"UBATCO & Co.","page_number":3,"box":{"x":520,"y":708,"width":113,"height":9}},{"id":"95550dc0-aa45-4f3b-963b-baa4052a4c66","block_type":"box","text":"UBS Financial Services, Inc.","page_number":3,"box":{"x":520,"y":723,"width":194,"height":11}},{"id":"3f38fef9-6a49-4721-9eec-b52ab01af63b","block_type":"box","text":"UBS Securities LLC","page_number":3,"box":{"x":520,"y":739,"width":139,"height":9}},{"id":"03d9ebb1-7b29-433b-a64f-86057d6eb07b","block_type":"box","text":"Ultimus Fund Solutions, LLC","page_number":3,"box":{"x":520,"y":754,"width":200,"height":11}},{"id":"a464f2cc-ebe7-4f5b-8485-04fcd9acdf74","block_type":"box","text":"UMB Bank, National Association","page_number":3,"box":{"x":520,"y":770,"width":228,"height":10}},{"id":"96e9983f-7ee1-495e-8f83-f0a624dc5a3c","block_type":"box","text":"United States Life Insurance Company in the City of","page_number":3,"box":{"x":520,"y":785,"width":356,"height":12}},{"id":"b105e631-bf44-459d-b6ce-f67a06d486ff","block_type":"box","text":"New York","page_number":3,"box":{"x":520,"y":801,"width":70,"height":9}},{"id":"c48f7e88-1f5e-4f4d-aad5-f2e3d199a310","block_type":"box","text":"VALIC Retirement Services Company","page_number":3,"box":{"x":520,"y":816,"width":261,"height":12}},{"id":"e4ac5f41-04e6-4411-b66a-4891b90e175b","block_type":"box","text":"Vanguard Group, Inc.","page_number":3,"box":{"x":520,"y":832,"width":152,"height":11}},{"id":"68328f60-da39-442d-b2eb-2fc351cb8662","block_type":"box","text":"Vanguard Marketing Corporation","page_number":3,"box":{"x":520,"y":847,"width":230,"height":12}},{"id":"debbc2c5-946d-41db-8925-874e4eb7ffa2","block_type":"box","text":"Voya Financial Advisors, Inc.","page_number":3,"box":{"x":520,"y":863,"width":207,"height":11}},{"id":"eb388aaf-dab7-40e7-98b6-d155ba3603d8","block_type":"box","text":"Voya Financial Partners, LLC","page_number":3,"box":{"x":520,"y":878,"width":207,"height":12}},{"id":"e3050c48-a59d-46e9-b804-c83a82a70cf7","block_type":"box","text":"Voya Institutional Plan Services, LLC","page_number":3,"box":{"x":520,"y":894,"width":262,"height":11}},{"id":"84980c37-f15b-491b-91be-56a67196344b","block_type":"box","text":"Voya Insurance and Annuity Company","page_number":3,"box":{"x":520,"y":909,"width":263,"height":12}},{"id":"5e7454a7-9b15-4dc1-b0f3-3244cd390b68","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":3,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"b9db43f5-1a15-4ae8-a6ad-c98cd527f2e1","block_type":"box","text":"Voya Investments Distributor, LLC","page_number":4,"box":{"x":116,"y":88,"width":245,"height":11}},{"id":"6bc4372b-7024-4038-bf3d-4d5fdff40c18","block_type":"box","text":"Voya Retirement Insurance and Annuity Company","page_number":4,"box":{"x":116,"y":103,"width":347,"height":12}},{"id":"7fe12490-c7e0-4bbe-98cd-4f0d79101996","block_type":"box","text":"Waddell & Reed, Inc.","page_number":4,"box":{"x":116,"y":119,"width":151,"height":10}},{"id":"e9f74f2d-4210-45fd-9efd-f22e3bbe4414","block_type":"box","text":"Wells Fargo Advisors, LLC","page_number":4,"box":{"x":116,"y":134,"width":192,"height":12}},{"id":"71196358-5495-4ff2-9b58-383a71ea47ea","block_type":"box","text":"Wells Fargo Advisors Financial Network, LLC","page_number":4,"box":{"x":116,"y":150,"width":322,"height":11}},{"id":"c996c185-1d2c-404d-b0ab-e84dd89c0b4b","block_type":"box","text":"Wells Fargo Bank, N.A.","page_number":4,"box":{"x":116,"y":165,"width":168,"height":12}},{"id":"9ef1fd60-4072-4d25-95f0-9038c8ed192d","block_type":"box","text":"Wells Fargo Clearing Services, LLC","page_number":4,"box":{"x":520,"y":88,"width":251,"height":11}},{"id":"73c53cc5-2aca-40b7-828b-f08c70ba6985","block_type":"box","text":"Wells Fargo Investments, LLC","page_number":4,"box":{"x":520,"y":103,"width":213,"height":12}},{"id":"517d1600-7b00-4c27-91f5-cac629cc551a","block_type":"box","text":"Wells Fargo Securities, LLC","page_number":4,"box":{"x":520,"y":119,"width":198,"height":11}},{"id":"13ac9fed-681c-44e4-b0da-8a0870567713","block_type":"box","text":"Wilmington Trust, National Association","page_number":4,"box":{"x":520,"y":134,"width":275,"height":12}},{"id":"fa38ebdc-5f0e-4cd5-9715-fba9811a5b6f","block_type":"box","text":"Woodbury Financial Services, Inc.","page_number":4,"box":{"x":520,"y":150,"width":238,"height":11}},{"id":"1e52193f-ea42-48c3-b74b-ca8059f2f8c4","block_type":"box","text":"ZB, National Association","page_number":4,"box":{"x":520,"y":165,"width":176,"height":11}},{"id":"44225e17-24cb-4f23-824a-191627951f70","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":4,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"52db5fb7-3c6a-4a23-963b-94ab0f5c92d8","block_type":"box","text":"Appendix A","page_number":5,"box":{"x":456,"y":87,"width":91,"height":12}},{"id":"17741f99-105d-4f4b-9515-62040488f154","block_type":"box","text":"BlackRock Advantage Global Fund, Inc.","page_number":5,"box":{"x":116,"y":118,"width":296,"height":12}},{"id":"a562b17d-e226-49e7-b85c-c6af9d2d2db4","block_type":"box","text":"BlackRock Advantage SMID Cap Fund, Inc.","page_number":5,"box":{"x":116,"y":149,"width":325,"height":12}},{"id":"cc6bdb20-b28e-4dc6-8b65-f27a61e2e607","block_type":"box","text":"BlackRock Allocation Target Shares","page_number":5,"box":{"x":116,"y":180,"width":266,"height":12}},{"id":"640e5433-683a-46b3-8330-670112de9ebb","block_type":"box","text":"BATS: Securitized Total Return Series","page_number":5,"box":{"x":150,"y":196,"width":267,"height":9}},{"id":"fadac2ca-ac00-42bf-bb26-21dae78e11fe","block_type":"box","text":"BATS: Corporate Credit Total Return Series","page_number":5,"box":{"x":150,"y":212,"width":304,"height":11}},{"id":"111ac107-1073-4f17-a4de-9ee6bf146198","block_type":"box","text":"BATS: High Income Municipal Series","page_number":5,"box":{"x":150,"y":227,"width":263,"height":12}},{"id":"bd8ac45f-3554-4178-949d-1469a8b248e0","block_type":"box","text":"BATS: High Income Taxable Series","page_number":5,"box":{"x":150,"y":243,"width":248,"height":11}},{"id":"f7179a99-0a9f-46b3-8ac7-e8cb8f440f67","block_type":"box","text":"BATS: Mortgage Total Return Series","page_number":5,"box":{"x":150,"y":258,"width":256,"height":12}},{"id":"39126311-9910-4635-aa1a-165ecdd00932","block_type":"box","text":"BATS: Interest Rate Hedge Series","page_number":5,"box":{"x":150,"y":274,"width":235,"height":11}},{"id":"ad780bee-b292-4ceb-814e-078ac95fcc6a","block_type":"box","text":"BATS: Short Duration Taxable Total","page_number":5,"box":{"x":150,"y":289,"width":254,"height":9}},{"id":"8db1f5cb-4617-42b1-a79b-01a643d3f66f","block_type":"box","text":"Return Series","page_number":5,"box":{"x":150,"y":305,"width":95,"height":9}},{"id":"1460c143-c670-4be7-ae69-679d5ee3061f","block_type":"box","text":"BATS: Short Term Municipal Income Series","page_number":5,"box":{"x":150,"y":320,"width":306,"height":12}},{"id":"0a18d306-d5d1-4297-9949-a521d4abea80","block_type":"box","text":"BlackRock Balanced Fund, Inc.","page_number":5,"box":{"x":116,"y":351,"width":232,"height":11}},{"id":"ce38e4df-b43d-451d-b26e-1fc7113c54fb","block_type":"box","text":"BlackRock Bond Fund, Inc.","page_number":5,"box":{"x":116,"y":382,"width":203,"height":11}},{"id":"7424a4ae-0c95-483d-94ca-ca5b8494b294","block_type":"box","text":"BlackRock Total Return Fund","page_number":5,"box":{"x":150,"y":398,"width":207,"height":9}},{"id":"10a7b77d-caa7-41d5-9640-e5388e2f585b","block_type":"box","text":"BlackRock California Municipal Series Trust","page_number":5,"box":{"x":116,"y":429,"width":331,"height":11}},{"id":"42fad82e-9870-4884-a0c5-324c0d0e2492","block_type":"box","text":"BlackRock California Municipal Opportunities","page_number":5,"box":{"x":150,"y":444,"width":321,"height":12}},{"id":"e8ecda75-1724-4806-b398-af9165a3f4c5","block_type":"box","text":"Fund","page_number":5,"box":{"x":150,"y":460,"width":38,"height":9}},{"id":"22477dcf-8f58-40da-898f-6e106d537790","block_type":"box","text":"BlackRock Capital Appreciation Fund, Inc.","page_number":5,"box":{"x":116,"y":491,"width":317,"height":11}},{"id":"0477a7e6-46ae-4a8c-91b1-2c64b729862c","block_type":"box","text":"BlackRock Emerging Markets Fund, Inc.","page_number":5,"box":{"x":116,"y":522,"width":301,"height":11}},{"id":"6e90e761-97f2-4ff2-b1af-498df25b04b0","block_type":"box","text":"BlackRock Equity Dividend Fund","page_number":5,"box":{"x":116,"y":553,"width":248,"height":11}},{"id":"79872b98-5c26-4cf6-82b8-7e0e9e754156","block_type":"box","text":"BlackRock Financial Institutions Series Trust","page_number":5,"box":{"x":116,"y":584,"width":332,"height":9}},{"id":"8db0948a-bf48-4991-a1b9-c19164cbcc24","block_type":"box","text":"BlackRock Summit Cash Reserves Fund","page_number":5,"box":{"x":150,"y":599,"width":278,"height":9}},{"id":"88aa8ebd-1fbe-4dcc-9275-54f94b98382f","block_type":"box","text":"BlackRock Funds","page_number":5,"box":{"x":116,"y":630,"width":127,"height":9}},{"id":"c5d14476-a2a5-4dec-848b-dee5e659cfae","block_type":"box","text":"SM","page_number":5,"box":{"x":244,"y":630,"width":15,"height":6}},{"id":"387a42e1-498c-4bcd-a2f7-ed1666709d05","block_type":"box","text":"BlackRock Advantage Emerging Markets Fund","page_number":5,"box":{"x":150,"y":646,"width":325,"height":11}},{"id":"eaceb7bc-7fd8-427a-a214-64a8146b41bf","block_type":"box","text":"BlackRock Advantage International Fund","page_number":5,"box":{"x":150,"y":661,"width":281,"height":12}},{"id":"cce2f989-0fcd-47be-9c19-f43a96b89907","block_type":"box","text":"BlackRock Advantage Large Cap Growth Fund","page_number":5,"box":{"x":150,"y":677,"width":320,"height":11}},{"id":"862e3b56-a038-46fd-b3f6-558a2e56eaa7","block_type":"box","text":"BlackRock Advantage Small Cap Core Fund","page_number":5,"box":{"x":150,"y":692,"width":302,"height":12}},{"id":"f5e91107-815c-48ca-ac34-bad0bdc0c003","block_type":"box","text":"BlackRock Advantage Small Cap Growth Fund","page_number":5,"box":{"x":150,"y":708,"width":321,"height":11}},{"id":"bd2139d6-9155-4fc0-abfc-c141bd714015","block_type":"box","text":"BlackRock China A Opportunities Fund","page_number":5,"box":{"x":150,"y":723,"width":271,"height":12}},{"id":"bedbfe8a-11d0-46cc-8b88-16752eeb47ef","block_type":"box","text":"BlackRock Commodity Strategies Fund","page_number":5,"box":{"x":150,"y":739,"width":268,"height":11}},{"id":"99cbb9db-2d8d-464b-acfb-c2c9c121d96a","block_type":"box","text":"BlackRock Daily Reinvestment Stablecoin","page_number":5,"box":{"x":150,"y":754,"width":288,"height":12}},{"id":"77be456f-0f4f-4346-91dd-6bfe2c66b084","block_type":"box","text":"Reserve Vehicle","page_number":5,"box":{"x":150,"y":770,"width":110,"height":9}},{"id":"773ec3ac-956c-472c-a5f4-c9de2574309d","block_type":"box","text":"BlackRock Defensive Advantage Emerging","page_number":5,"box":{"x":150,"y":785,"width":294,"height":12}},{"id":"065ecf00-4beb-4fff-a0ef-21fb8ac0d29c","block_type":"box","text":"Markets Fund","page_number":5,"box":{"x":150,"y":801,"width":93,"height":9}},{"id":"f508ce38-496e-40fe-b7e4-2b8be17071ce","block_type":"box","text":"BlackRock Emerging Markets ex-China Fund","page_number":5,"box":{"x":150,"y":816,"width":309,"height":12}},{"id":"9b5eb923-b7e9-4f03-a9d7-489d919d3b10","block_type":"box","text":"BlackRock Energy Opportunities Fund","page_number":5,"box":{"x":150,"y":832,"width":267,"height":11}},{"id":"651bc052-6f4c-489d-8727-4be6031f7387","block_type":"box","text":"BlackRock Exchange Portfolio","page_number":5,"box":{"x":150,"y":847,"width":213,"height":12}},{"id":"2abb442f-3cf2-4533-af1e-9cfb9be6e3c5","block_type":"box","text":"BlackRock Global Equity Market Neutral Fund","page_number":5,"box":{"x":150,"y":863,"width":324,"height":11}},{"id":"0d4abc89-c238-452b-99b7-17c918a56730","block_type":"box","text":"BlackRock Health Sciences Opportunities","page_number":5,"box":{"x":150,"y":878,"width":288,"height":12}},{"id":"d0ced532-ab6c-48c8-a1df-6d1fb04a5f02","block_type":"box","text":"Portfolio","page_number":5,"box":{"x":150,"y":894,"width":63,"height":9}},{"id":"eb012076-e7b4-46c6-9c1c-36bf61cd9a47","block_type":"box","text":"BlackRock High Equity Income Fund","page_number":5,"box":{"x":150,"y":909,"width":255,"height":12}},{"id":"a7427361-80ff-426c-981e-cfeeee5d4390","block_type":"box","text":"BlackRock Mid-Cap Growth Equity Portfolio","page_number":5,"box":{"x":554,"y":119,"width":312,"height":11}},{"id":"26e5a8ac-01bc-4de5-8b2c-317921a3aa8d","block_type":"box","text":"BlackRock Real Estate Securities Fund","page_number":5,"box":{"x":554,"y":134,"width":269,"height":9}},{"id":"43f9f021-d022-4881-8ac3-59c5037d866c","block_type":"box","text":"BlackRock Short Obligations Fund","page_number":5,"box":{"x":554,"y":150,"width":241,"height":11}},{"id":"1ff44b0e-75e8-4605-8bed-9e0fcf1fcb69","block_type":"box","text":"BlackRock Sustainable Aware Advantage","page_number":5,"box":{"x":554,"y":165,"width":287,"height":12}},{"id":"52536639-26f2-455a-8166-cb73008f2731","block_type":"box","text":"Emerging Markets Equity Fund","page_number":5,"box":{"x":554,"y":181,"width":218,"height":11}},{"id":"7277cba9-adeb-482c-991a-1e992dce3445","block_type":"box","text":"BlackRock Sustainable Aware Advantage Large","page_number":5,"box":{"x":554,"y":196,"width":330,"height":12}},{"id":"86daacad-bf02-461d-8a13-6b4cda8fa336","block_type":"box","text":"Cap Core Fund","page_number":5,"box":{"x":554,"y":212,"width":106,"height":11}},{"id":"ffa8b380-57f4-405e-a69f-ce89f52a613b","block_type":"box","text":"BlackRock Tactical Opportunities Fund","page_number":5,"box":{"x":554,"y":227,"width":273,"height":12}},{"id":"5efe3baf-e052-435f-8b77-df8fb05c89cc","block_type":"box","text":"BlackRock Technology Opportunities Fund","page_number":5,"box":{"x":554,"y":243,"width":299,"height":11}},{"id":"4fdba4e4-251a-4ba7-a1fe-3b1201ce9c85","block_type":"box","text":"BlackRock Wealth Liquid Environmentally","page_number":5,"box":{"x":554,"y":258,"width":298,"height":12}},{"id":"e57ffccf-44d7-4a15-8750-095f91186559","block_type":"box","text":"Aware Fund","page_number":5,"box":{"x":554,"y":274,"width":87,"height":9}},{"id":"992e97c9-9548-463e-9ddc-293e80211a12","block_type":"box","text":"Circle Reserve Fund","page_number":5,"box":{"x":554,"y":289,"width":142,"height":9}},{"id":"1bb09223-bcb3-4511-b27b-cc8314d8bc8b","block_type":"box","text":"iShares Developed Real Estate Index Fund","page_number":5,"box":{"x":554,"y":305,"width":292,"height":11}},{"id":"1a232bb1-bc47-4120-aad8-cd6e36f3cb9b","block_type":"box","text":"iShares Enhanced Roll Yield Index Fund","page_number":5,"box":{"x":554,"y":320,"width":280,"height":9}},{"id":"9ed683b0-aa6d-4bb0-a244-50aaf5c8c821","block_type":"box","text":"iShares FTSE NAREIT All Equity REIT Index","page_number":5,"box":{"x":554,"y":336,"width":322,"height":11}},{"id":"20ace141-5dec-410b-aef1-c8f424d7b189","block_type":"box","text":"Fund","page_number":5,"box":{"x":554,"y":351,"width":38,"height":9}},{"id":"f37255fc-a8da-4156-9b09-0fe24994f646","block_type":"box","text":"iShares Municipal Bond Index Fund","page_number":5,"box":{"x":554,"y":367,"width":249,"height":11}},{"id":"531be06e-089f-4924-9845-33381fa9aa38","block_type":"box","text":"iShares Russell Mid-Cap Index Fund","page_number":5,"box":{"x":554,"y":382,"width":254,"height":12}},{"id":"850519e8-70b3-49bd-9895-bfc14a73c0d0","block_type":"box","text":"iShares Russell Small/Mid-Cap Index Fund","page_number":5,"box":{"x":554,"y":398,"width":298,"height":11}},{"id":"8235a932-b6d1-4bc8-b342-71bf40e04e77","block_type":"box","text":"iShares Short-Term TIPS Bond Index Fund","page_number":5,"box":{"x":554,"y":413,"width":297,"height":9}},{"id":"198ea179-519e-41f4-bdfc-6b0c97e9c5a5","block_type":"box","text":"iShares Total U.S. Stock Market Index Fund","page_number":5,"box":{"x":554,"y":429,"width":304,"height":9}},{"id":"3f4f7fe3-1b42-484e-a514-9626ad94123f","block_type":"box","text":"iShares U.S. Intermediate Credit Bond Index","page_number":5,"box":{"x":554,"y":444,"width":306,"height":9}},{"id":"e4e260d7-67c5-4f74-a6d2-d66519f7a2d9","block_type":"box","text":"Fund","page_number":5,"box":{"x":554,"y":460,"width":38,"height":9}},{"id":"f7e85b07-8586-49ac-848d-1529b6837d18","block_type":"box","text":"iShares U.S. Intermediate Government Bond","page_number":5,"box":{"x":554,"y":475,"width":306,"height":9}},{"id":"51179f20-39d6-4ac3-adb7-6df82888a77c","block_type":"box","text":"Index Fund","page_number":5,"box":{"x":554,"y":491,"width":81,"height":9}},{"id":"ac0dacf1-7949-4cae-882f-170b7bc5e4b2","block_type":"box","text":"iShares U.S. Long Credit Bond Index Fund","page_number":5,"box":{"x":554,"y":506,"width":296,"height":12}},{"id":"ae6a4d99-69ff-44a4-9905-c675c6e1f068","block_type":"box","text":"iShares U.S. Long Government Bond Index","page_number":5,"box":{"x":554,"y":522,"width":299,"height":11}},{"id":"8ff70b69-5095-46d3-8b34-194e926099b1","block_type":"box","text":"Fund","page_number":5,"box":{"x":554,"y":537,"width":38,"height":9}},{"id":"b890ea09-b621-4a5f-a683-7753a5e8005d","block_type":"box","text":"iShares U.S. Securitized Bond Index Fund","page_number":5,"box":{"x":554,"y":553,"width":290,"height":9}},{"id":"a676c548-85c6-4213-9551-527c00ddf893","block_type":"box","text":"BlackRock Funds II","page_number":5,"box":{"x":520,"y":584,"width":149,"height":9}},{"id":"153c33ff-e107-4190-819d-e7956f26d392","block_type":"box","text":"BlackRock 20/80 Target Allocation Fund","page_number":5,"box":{"x":554,"y":599,"width":283,"height":12}},{"id":"3f03e244-a57f-4aae-877b-51a9683cc438","block_type":"box","text":"BlackRock 40/60 Target Allocation Fund","page_number":5,"box":{"x":554,"y":615,"width":283,"height":11}},{"id":"927f6863-ae74-4926-818a-710e7c08745c","block_type":"box","text":"BlackRock 60/40 Target Allocation Fund","page_number":5,"box":{"x":554,"y":630,"width":283,"height":12}},{"id":"54a01ba8-238c-45e1-bade-a23a73b83ed0","block_type":"box","text":"BlackRock 80/20 Target Allocation Fund","page_number":5,"box":{"x":554,"y":646,"width":283,"height":11}},{"id":"486cb650-9bf5-4294-848e-ab08b1d093b0","block_type":"box","text":"BlackRock Dynamic High Income Portfolio","page_number":5,"box":{"x":554,"y":661,"width":296,"height":12}},{"id":"985162a1-8644-4785-be94-0eab5de6000c","block_type":"box","text":"BlackRock Global Dividend Portfolio","page_number":5,"box":{"x":554,"y":677,"width":255,"height":9}},{"id":"b5cae447-caa5-4fdf-a887-f96bc3e0749e","block_type":"box","text":"BlackRock Managed Income Fund","page_number":5,"box":{"x":554,"y":692,"width":235,"height":12}},{"id":"4f14a74e-e6c4-4268-821f-2076733c443c","block_type":"box","text":"BlackRock Multi-Asset Income Portfolio","page_number":5,"box":{"x":554,"y":708,"width":277,"height":9}},{"id":"bba65ca6-c13f-41af-976e-2704f4fe55c2","block_type":"box","text":"BlackRock Retirement Income 2030 Fund","page_number":5,"box":{"x":554,"y":723,"width":285,"height":9}},{"id":"daeca092-8d7e-432b-aa68-bfcdb493b679","block_type":"box","text":"BlackRock Funds III","page_number":5,"box":{"x":520,"y":754,"width":151,"height":9}},{"id":"52b16e20-6683-4b29-97e8-a14ddcab4003","block_type":"box","text":"BlackRock Cash Funds: Institutional","page_number":5,"box":{"x":554,"y":770,"width":247,"height":9}},{"id":"afbf4507-aa86-44cf-92d9-4ab0e1ec203c","block_type":"box","text":"BlackRock Cash Funds: Treasury","page_number":5,"box":{"x":554,"y":785,"width":226,"height":12}},{"id":"196a2c58-64d4-49b1-a1a4-b86cc243fce3","block_type":"box","text":"BlackRock Diversified Equity Alpha Fund","page_number":5,"box":{"x":554,"y":801,"width":288,"height":11}},{"id":"5c691489-1b6a-42fe-a149-3fffd3a56973","block_type":"box","text":"BlackRock Diversified Fixed Income Fund","page_number":5,"box":{"x":554,"y":816,"width":290,"height":9}},{"id":"49564536-4d60-4252-9c1f-290b123bd770","block_type":"box","text":"BlackRock LifePath","page_number":5,"box":{"x":554,"y":832,"width":136,"height":9}},{"id":"4de1dca7-0e0d-4086-9291-cf7ac3780d68","block_type":"box","text":"®","page_number":5,"box":{"x":691,"y":831,"width":9,"height":6}},{"id":"01777495-c99a-49b9-9866-075f61f4e14b","block_type":"box","text":"Dynamic Retirement","page_number":5,"box":{"x":700,"y":832,"width":149,"height":11}},{"id":"186db888-51d4-44f4-a261-4c3c156805d9","block_type":"box","text":"Fund","page_number":5,"box":{"x":554,"y":847,"width":38,"height":9}},{"id":"5e29e85b-1af1-4b4e-a6ea-08cd1c850c5f","block_type":"box","text":"BlackRock LifePath","page_number":5,"box":{"x":554,"y":863,"width":136,"height":9}},{"id":"3e2ddd0a-2c95-4329-8a82-9d8ace6b1f75","block_type":"box","text":"®","page_number":5,"box":{"x":691,"y":862,"width":9,"height":6}},{"id":"d5379ff7-c0ef-4525-a34a-4ba38b958a4e","block_type":"box","text":"Dynamic 2030 Fund","page_number":5,"box":{"x":700,"y":863,"width":147,"height":11}},{"id":"6110b786-3e25-4842-abae-77b586b70669","block_type":"box","text":"BlackRock LifePath","page_number":5,"box":{"x":554,"y":878,"width":136,"height":9}},{"id":"ab6629dc-ad5a-4828-82c6-2b8d72e3e5aa","block_type":"box","text":"®","page_number":5,"box":{"x":691,"y":877,"width":9,"height":7}},{"id":"f3a7c001-4b36-4d30-bb0d-83cd2bfe6b3b","block_type":"box","text":"Dynamic 2035 Fund","page_number":5,"box":{"x":700,"y":878,"width":147,"height":12}},{"id":"958a25a6-00f8-4631-b419-1da6b4511c45","block_type":"box","text":"BlackRock LifePath","page_number":5,"box":{"x":554,"y":894,"width":136,"height":9}},{"id":"49597de3-d04d-45eb-9cdb-27ca098c02e9","block_type":"box","text":"®","page_number":5,"box":{"x":691,"y":893,"width":9,"height":6}},{"id":"4abaa9d9-9d91-4aa1-9a20-cadc0231f19a","block_type":"box","text":"Dynamic 2040 Fund","page_number":5,"box":{"x":700,"y":894,"width":147,"height":11}},{"id":"eecc4176-196b-4882-bd60-beb86b77314a","block_type":"box","text":"BlackRock LifePath","page_number":5,"box":{"x":554,"y":909,"width":136,"height":9}},{"id":"64656f34-2508-4405-bbab-75a36fb3a31c","block_type":"box","text":"®","page_number":5,"box":{"x":691,"y":908,"width":9,"height":7}},{"id":"206503a8-a289-4f3b-9387-20b1d10cdc5f","block_type":"box","text":"Dynamic 2045 Fund","page_number":5,"box":{"x":705,"y":909,"width":138,"height":12}},{"id":"b3f25efd-0e6f-4c06-a063-a9c3605d0757","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":5,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"74551210-fc18-4758-a48c-42fa265b6b75","block_type":"box","text":"BlackRock LifePath","page_number":6,"box":{"x":150,"y":88,"width":136,"height":9}},{"id":"cd3a3088-e959-40a8-9e27-3a4d30224ddd","block_type":"box","text":"®","page_number":6,"box":{"x":287,"y":87,"width":9,"height":6}},{"id":"9d5a93d4-de03-47a7-8dc4-848e91c3aa03","block_type":"box","text":"Dynamic 2050 Fund","page_number":6,"box":{"x":296,"y":88,"width":147,"height":11}},{"id":"b6ffe3da-9c1d-48bc-99b7-28942daad6d9","block_type":"box","text":"BlackRock LifePath","page_number":6,"box":{"x":150,"y":103,"width":136,"height":9}},{"id":"be0db56b-ad94-421f-97a6-1101a5e0441c","block_type":"box","text":"®","page_number":6,"box":{"x":287,"y":102,"width":9,"height":7}},{"id":"8b57a780-8246-4dae-91e7-bcbe44ca24cb","block_type":"box","text":"Dynamic 2055 Fund","page_number":6,"box":{"x":296,"y":103,"width":147,"height":12}},{"id":"62875490-9a6d-43f4-9311-c5c20a7cca85","block_type":"box","text":"BlackRock LifePath","page_number":6,"box":{"x":150,"y":119,"width":136,"height":9}},{"id":"d95b2e23-efe3-4673-86d1-cec01bf1290d","block_type":"box","text":"®","page_number":6,"box":{"x":287,"y":118,"width":9,"height":6}},{"id":"6c1515e8-9a48-4d50-b4c6-00f2799c09dc","block_type":"box","text":"Dynamic 2060 Fund","page_number":6,"box":{"x":296,"y":119,"width":147,"height":11}},{"id":"ce479ad8-7076-4ee3-82f2-708a4cff437b","block_type":"box","text":"BlackRock LifePath","page_number":6,"box":{"x":150,"y":134,"width":136,"height":9}},{"id":"c9bf16f8-f0af-4b31-b29c-488f472d6139","block_type":"box","text":"®","page_number":6,"box":{"x":287,"y":133,"width":9,"height":7}},{"id":"66c4bacd-c177-4a9b-b6d9-a6d83e932f1e","block_type":"box","text":"Dynamic 2065 Fund","page_number":6,"box":{"x":296,"y":134,"width":147,"height":12}},{"id":"0b6beebe-8f25-4bb5-b3a5-90b0bc5280d4","block_type":"box","text":"BlackRock LifePath","page_number":6,"box":{"x":150,"y":150,"width":136,"height":9}},{"id":"3900ee21-1639-47c3-b299-22d53cd5ea1a","block_type":"box","text":"®","page_number":6,"box":{"x":287,"y":149,"width":9,"height":6}},{"id":"2d08eb13-ef17-42c0-9036-e614c9eeea56","block_type":"box","text":"Dynamic 2070 Fund","page_number":6,"box":{"x":296,"y":150,"width":147,"height":11}},{"id":"460a3b92-9a7b-4f5c-99cd-af0f86a1edda","block_type":"box","text":"BlackRock LifePath","page_number":6,"box":{"x":150,"y":165,"width":136,"height":9}},{"id":"cfc17849-dc38-4ba1-b973-e8d5d7fcdd14","block_type":"box","text":"®","page_number":6,"box":{"x":287,"y":164,"width":9,"height":7}},{"id":"5a26d3f4-a6cc-4ff0-8bb4-58318c1a85ac","block_type":"box","text":"Index Retirement Fund","page_number":6,"box":{"x":296,"y":165,"width":165,"height":9}},{"id":"2a1169ea-b4a6-467a-a0d1-344d6dacd631","block_type":"box","text":"BlackRock LifePath","page_number":6,"box":{"x":150,"y":181,"width":136,"height":9}},{"id":"227cd34f-8231-4772-ac55-d148c4a3c76a","block_type":"box","text":"®","page_number":6,"box":{"x":287,"y":180,"width":9,"height":6}},{"id":"4b305077-d241-4222-99c0-b62c2a1af55b","block_type":"box","text":"Index 2030 Fund","page_number":6,"box":{"x":296,"y":181,"width":124,"height":9}},{"id":"19d4b986-d0b7-42cd-b472-54b0ff9681c1","block_type":"box","text":"BlackRock LifePath","page_number":6,"box":{"x":150,"y":196,"width":136,"height":9}},{"id":"a6ab56d5-72ad-455f-8839-251d6d6ebdaf","block_type":"box","text":"®","page_number":6,"box":{"x":287,"y":195,"width":9,"height":7}},{"id":"93cfd4f2-0a3c-4683-8ecd-0560cdd1fa81","block_type":"box","text":"Index 2035 Fund","page_number":6,"box":{"x":296,"y":196,"width":124,"height":9}},{"id":"a9aec0ac-64dc-4846-ba21-9d381f09c6c2","block_type":"box","text":"BlackRock LifePath","page_number":6,"box":{"x":150,"y":212,"width":136,"height":9}},{"id":"bb3b3021-b18c-45a1-a325-ee44d5961ed3","block_type":"box","text":"®","page_number":6,"box":{"x":287,"y":211,"width":9,"height":6}},{"id":"de65064c-2555-4ca9-be01-741f0dd892cf","block_type":"box","text":"Index 2040 Fund","page_number":6,"box":{"x":296,"y":212,"width":124,"height":9}},{"id":"894b6622-70d2-49ea-8230-e6c60ac82de5","block_type":"box","text":"BlackRock LifePath","page_number":6,"box":{"x":150,"y":227,"width":136,"height":9}},{"id":"e5b2e043-0100-4e96-9772-d8fe9e27f76a","block_type":"box","text":"®","page_number":6,"box":{"x":287,"y":226,"width":9,"height":7}},{"id":"81d1b498-3487-480a-b5e9-083db2eabf32","block_type":"box","text":"Index 2045 Fund","page_number":6,"box":{"x":296,"y":227,"width":124,"height":9}},{"id":"315662e0-6123-41ce-83b7-650eb480e200","block_type":"box","text":"BlackRock LifePath","page_number":6,"box":{"x":150,"y":243,"width":136,"height":9}},{"id":"21170a6e-2c1a-4b3a-b002-9a2ba99ce251","block_type":"box","text":"®","page_number":6,"box":{"x":287,"y":242,"width":9,"height":6}},{"id":"3c042d01-0cc4-42c9-987f-4853861518ab","block_type":"box","text":"Index 2050 Fund","page_number":6,"box":{"x":296,"y":243,"width":124,"height":9}},{"id":"24dda908-2cee-4069-a19a-97ec4ace05ab","block_type":"box","text":"BlackRock LifePath","page_number":6,"box":{"x":150,"y":258,"width":136,"height":9}},{"id":"2ff9286c-e27d-4245-8719-90dcc5e6aa7b","block_type":"box","text":"®","page_number":6,"box":{"x":287,"y":257,"width":9,"height":7}},{"id":"e2c33a0f-85e3-4a89-b66f-7fd5fcc2b831","block_type":"box","text":"Index 2055 Fund","page_number":6,"box":{"x":296,"y":258,"width":124,"height":9}},{"id":"06808b46-fb70-4fc9-a852-31e231df6c75","block_type":"box","text":"BlackRock LifePath","page_number":6,"box":{"x":150,"y":274,"width":136,"height":9}},{"id":"82ebb2eb-540d-424c-99e7-915a9cbcf60e","block_type":"box","text":"®","page_number":6,"box":{"x":287,"y":273,"width":9,"height":6}},{"id":"9d41e56c-56db-43ba-9085-c6795ab73d4e","block_type":"box","text":"Index 2060 Fund","page_number":6,"box":{"x":296,"y":274,"width":124,"height":9}},{"id":"d3dc9f42-ff8a-4941-afa5-f969b74cd49d","block_type":"box","text":"BlackRock LifePath","page_number":6,"box":{"x":150,"y":289,"width":136,"height":9}},{"id":"c02f1cfc-4b4f-44ad-8765-43a044631225","block_type":"box","text":"®","page_number":6,"box":{"x":287,"y":288,"width":9,"height":7}},{"id":"43be48db-f696-4753-ada0-3b82d6aecc4c","block_type":"box","text":"Index 2065 Fund","page_number":6,"box":{"x":296,"y":289,"width":124,"height":9}},{"id":"1dc622fb-414d-4b64-9ac9-f49861ea1b0d","block_type":"box","text":"BlackRock LifePath","page_number":6,"box":{"x":150,"y":305,"width":136,"height":9}},{"id":"d22fa9ed-b498-4813-a7a1-d52034e13b0a","block_type":"box","text":"®","page_number":6,"box":{"x":287,"y":304,"width":9,"height":6}},{"id":"06b07f1b-c5d4-4749-b400-8fc9b86cc040","block_type":"box","text":"Index 2070 Fund","page_number":6,"box":{"x":296,"y":305,"width":124,"height":9}},{"id":"ae6e47bd-f0fa-4bd6-a34e-83df39ed2265","block_type":"box","text":"iShares MSCI Total International Index Fund","page_number":6,"box":{"x":150,"y":320,"width":310,"height":9}},{"id":"b91d1f36-ca67-4661-8854-cf00c728ba80","block_type":"box","text":"iShares Russell 1000 Large-Cap Index Fund","page_number":6,"box":{"x":150,"y":336,"width":303,"height":11}},{"id":"76c49160-87c1-4b48-a201-d4211f042ac5","block_type":"box","text":"iShares S&P 500 Index Fund","page_number":6,"box":{"x":150,"y":351,"width":200,"height":9}},{"id":"d8ce11d1-aed8-4d36-999f-832c93979509","block_type":"box","text":"iShares U.S. Aggregate Bond Index Fund","page_number":6,"box":{"x":150,"y":367,"width":284,"height":11}},{"id":"246000b2-cf1b-4f39-ace0-61f42ba1fdff","block_type":"box","text":"BlackRock Funds IV","page_number":6,"box":{"x":116,"y":398,"width":154,"height":9}},{"id":"523c34ae-085a-450e-b580-73ee6b17b378","block_type":"box","text":"BlackRock Credit Relative Value Fund","page_number":6,"box":{"x":150,"y":413,"width":268,"height":9}},{"id":"0a7f9808-9e7f-485a-b7bc-3e1c811ad170","block_type":"box","text":"BlackRock Systematic Multi-Strategy Fund","page_number":6,"box":{"x":150,"y":429,"width":299,"height":11}},{"id":"96256257-6ecb-420e-98f0-f223973f12fc","block_type":"box","text":"BlackRock Funds V","page_number":6,"box":{"x":116,"y":460,"width":148,"height":9}},{"id":"caa8d933-709a-44e3-bcb5-4a9076872c37","block_type":"box","text":"BlackRock Core Bond Portfolio","page_number":6,"box":{"x":150,"y":475,"width":220,"height":9}},{"id":"6cac3b21-6bdc-4f27-8214-3c786ed7f6a6","block_type":"box","text":"BlackRock Floating Rate Income Portfolio","page_number":6,"box":{"x":150,"y":491,"width":293,"height":11}},{"id":"29d3e876-330b-4144-a911-9a54b4858a07","block_type":"box","text":"BlackRock High Yield Portfolio","page_number":6,"box":{"x":150,"y":506,"width":222,"height":12}},{"id":"20095f2d-bb3d-4419-92fa-49ebcb8c5ad7","block_type":"box","text":"BlackRock Income Fund","page_number":6,"box":{"x":150,"y":522,"width":172,"height":9}},{"id":"b4e31fb5-2bdf-462e-b706-a08c9e93e26c","block_type":"box","text":"BlackRock Inflation Protected Bond Portfolio","page_number":6,"box":{"x":150,"y":537,"width":313,"height":9}},{"id":"6dc16b4a-4130-45c2-bd24-c1d18a6e498d","block_type":"box","text":"BlackRock Low Duration Bond Portfolio","page_number":6,"box":{"x":150,"y":553,"width":282,"height":9}},{"id":"eb1b923e-e3a4-4d87-9eff-75fde5cccb5e","block_type":"box","text":"BlackRock Strategic Income Opportunities","page_number":6,"box":{"x":150,"y":568,"width":294,"height":12}},{"id":"19d070b6-d738-48e8-8a4c-66821b12229e","block_type":"box","text":"Portfolio","page_number":6,"box":{"x":150,"y":584,"width":63,"height":9}},{"id":"af27fde8-fc27-47e0-a71c-5cda54e931b0","block_type":"box","text":"BlackRock Funds VI","page_number":6,"box":{"x":116,"y":615,"width":154,"height":9}},{"id":"d4769688-016d-4c5d-b57c-d5714b8d400e","block_type":"box","text":"BlackRock Advantage CoreAlpha Bond Fund","page_number":6,"box":{"x":150,"y":630,"width":313,"height":12}},{"id":"e9436d88-a063-403d-99e8-b0ada8575573","block_type":"box","text":"BlackRock Global Allocation Fund, Inc.","page_number":6,"box":{"x":116,"y":661,"width":287,"height":11}},{"id":"b0ad2f5a-7dc2-48a7-a4b0-9b651b082d18","block_type":"box","text":"BlackRock Index Funds, Inc.","page_number":6,"box":{"x":116,"y":692,"width":208,"height":11}},{"id":"26e8657e-46f8-4340-b8ed-7f7c7a1ff70c","block_type":"box","text":"iShares MSCI EAFE International Index Fund","page_number":6,"box":{"x":150,"y":708,"width":312,"height":9}},{"id":"a77d406c-ac2a-4e03-8646-6928288ab9fa","block_type":"box","text":"iShares Russell 2000 Small-Cap Index Fund","page_number":6,"box":{"x":150,"y":723,"width":298,"height":12}},{"id":"0393e2b4-7780-47ad-92cf-28d8adb4442f","block_type":"box","text":"BlackRock International Select Equity Fund","page_number":6,"box":{"x":116,"y":754,"width":319,"height":12}},{"id":"69916e4b-dda7-43e6-8abb-8a9c1a1fa3e3","block_type":"box","text":"BlackRock Large Cap Focus Growth Fund, Inc.","page_number":6,"box":{"x":116,"y":785,"width":344,"height":12}},{"id":"b45a12f7-230d-483c-b356-d0e983f24dc6","block_type":"box","text":"BlackRock Large Cap Focus Value Fund, Inc.","page_number":6,"box":{"x":116,"y":816,"width":330,"height":12}},{"id":"86cf1bd6-40f3-4947-8c18-6213071a4820","block_type":"box","text":"BlackRock Large Cap Series Funds, Inc.","page_number":6,"box":{"x":116,"y":847,"width":296,"height":12}},{"id":"ad6e6862-99bd-49a8-a0a6-38b48658de13","block_type":"box","text":"BlackRock Advantage Large Cap Core Fund","page_number":6,"box":{"x":150,"y":863,"width":306,"height":11}},{"id":"8626e721-4357-4bf0-ae5e-b5340b13ecf2","block_type":"box","text":"BlackRock Advantage Large Cap Value Fund","page_number":6,"box":{"x":150,"y":878,"width":314,"height":12}},{"id":"eb5f9eab-883b-4631-81d4-553a33c67ff5","block_type":"box","text":"BlackRock Event Driven Equity Fund","page_number":6,"box":{"x":150,"y":894,"width":261,"height":11}},{"id":"1622891d-b646-47ad-8a02-e0df6af5036b","block_type":"box","text":"BlackRock Liquidity Funds","page_number":6,"box":{"x":520,"y":87,"width":203,"height":12}},{"id":"a88cd921-0b57-4792-a5d4-7e6f71ffdac2","block_type":"box","text":"FedFund","page_number":6,"box":{"x":554,"y":103,"width":63,"height":9}},{"id":"9c830f41-b235-4849-a838-9a7c902208ac","block_type":"box","text":"MuniCash","page_number":6,"box":{"x":554,"y":119,"width":74,"height":9}},{"id":"8cf63292-d9c1-46e1-9cba-d38383607ba4","block_type":"box","text":"TempCash","page_number":6,"box":{"x":554,"y":134,"width":77,"height":12}},{"id":"1618c140-4435-4ffa-8a54-5a3f688e8263","block_type":"box","text":"BlackRock Select Treasury Based Liquidity","page_number":6,"box":{"x":554,"y":150,"width":300,"height":11}},{"id":"b4f747b0-f7c4-4355-ba78-6c523cf45327","block_type":"box","text":"Fund","page_number":6,"box":{"x":554,"y":165,"width":38,"height":9}},{"id":"7ba14d3c-beeb-40bd-88e4-16cb33945ff0","block_type":"box","text":"T-Fund","page_number":6,"box":{"x":554,"y":181,"width":54,"height":9}},{"id":"5beb311a-f823-4688-a6aa-d338540e841e","block_type":"box","text":"Treasury Trust Fund","page_number":6,"box":{"x":554,"y":196,"width":142,"height":12}},{"id":"f939d00c-9255-439f-8669-b837c4161419","block_type":"box","text":"BlackRock Mid-Cap Value Series, Inc.","page_number":6,"box":{"x":520,"y":227,"width":282,"height":12}},{"id":"0097d64a-15ee-4c71-bfc0-d20985de64eb","block_type":"box","text":"BlackRock Mid-Cap Value Fund","page_number":6,"box":{"x":554,"y":243,"width":227,"height":11}},{"id":"d9593ea7-9ea0-4753-945a-ea3f4ea15c33","block_type":"box","text":"BlackRock Multi-State Municipal Series Trust","page_number":6,"box":{"x":520,"y":274,"width":339,"height":11}},{"id":"fad9efc2-246b-4982-a1d0-1c52c40870cb","block_type":"box","text":"BlackRock New Jersey Municipal Bond Fund","page_number":6,"box":{"x":554,"y":289,"width":314,"height":12}},{"id":"ed97a4f4-f1d5-49b3-aa77-1fce2e1f4a86","block_type":"box","text":"BlackRock New York Municipal Opportunities","page_number":6,"box":{"x":554,"y":305,"width":324,"height":11}},{"id":"97a8abb3-3ddc-4af0-9bff-122ea98cf36a","block_type":"box","text":"Fund","page_number":6,"box":{"x":554,"y":320,"width":38,"height":9}},{"id":"424c0c8b-0622-447d-a2c4-5634d7bd5cb6","block_type":"box","text":"BlackRock Pennsylvania Municipal Bond Fund","page_number":6,"box":{"x":554,"y":336,"width":326,"height":11}},{"id":"45623bff-b75d-40b4-838d-f05a3467c1b8","block_type":"box","text":"BlackRock Municipal Bond Fund, Inc.","page_number":6,"box":{"x":520,"y":367,"width":282,"height":11}},{"id":"86d057ad-1268-4411-9213-6a746b83af8d","block_type":"box","text":"BlackRock National Municipal Fund","page_number":6,"box":{"x":554,"y":382,"width":253,"height":12}},{"id":"9fcb3f62-a3d9-452c-a787-4760c8cf6183","block_type":"box","text":"BlackRock Short Duration Muni Fund","page_number":6,"box":{"x":554,"y":398,"width":263,"height":9}},{"id":"2e254db2-3200-41d8-b9ad-b8096e6c9f81","block_type":"box","text":"BlackRock Municipal Series Trust","page_number":6,"box":{"x":520,"y":429,"width":252,"height":11}},{"id":"07bfe46a-506d-4174-bebf-304c16a4f547","block_type":"box","text":"BlackRock Strategic Municipal Opportunities","page_number":6,"box":{"x":554,"y":444,"width":313,"height":12}},{"id":"60244115-1582-45dc-899c-fbc723777427","block_type":"box","text":"Fund","page_number":6,"box":{"x":554,"y":460,"width":38,"height":9}},{"id":"6585d25d-bd97-4f9c-9fd2-a248725b15d1","block_type":"box","text":"BlackRock Natural Resources Trust","page_number":6,"box":{"x":520,"y":491,"width":264,"height":9}},{"id":"5a503023-5b93-45d4-9248-41d66dc20b4c","block_type":"box","text":"BlackRock Series Fund, Inc.","page_number":6,"box":{"x":520,"y":522,"width":208,"height":11}},{"id":"6322b44e-19cc-4898-a70e-b4c4241d537c","block_type":"box","text":"BlackRock Advantage Large Cap Core Portfolio","page_number":6,"box":{"x":554,"y":537,"width":331,"height":12}},{"id":"369a0fcd-6266-4ea9-ae9c-5277a0c2fba6","block_type":"box","text":"BlackRock Balanced Portfolio","page_number":6,"box":{"x":554,"y":553,"width":209,"height":9}},{"id":"6f6bfccf-1583-41d1-836d-d9240de75d3a","block_type":"box","text":"BlackRock Capital Appreciation Portfolio","page_number":6,"box":{"x":554,"y":568,"width":288,"height":12}},{"id":"bf18c1c3-6811-4368-9270-4a0a41eedb8d","block_type":"box","text":"BlackRock Global Allocation Portfolio","page_number":6,"box":{"x":554,"y":584,"width":268,"height":9}},{"id":"b39eecdd-e6e8-445a-b77c-91fc5492cd35","block_type":"box","text":"BlackRock Government Money Market","page_number":6,"box":{"x":554,"y":599,"width":272,"height":12}},{"id":"d3fc0725-874a-4dc7-97fa-831cc20831ff","block_type":"box","text":"Portfolio","page_number":6,"box":{"x":554,"y":615,"width":63,"height":9}},{"id":"f83688c7-e806-491a-bfd4-5749ac8a160f","block_type":"box","text":"BlackRock Series Fund II, Inc.","page_number":6,"box":{"x":520,"y":646,"width":226,"height":11}},{"id":"9c70cf80-d4e2-4b96-a72f-3127157ffdc1","block_type":"box","text":"BlackRock High Yield Portfolio","page_number":6,"box":{"x":554,"y":661,"width":217,"height":12}},{"id":"e4cd57e6-fcc1-4050-8662-313e085fd785","block_type":"box","text":"BlackRock Series, Inc.","page_number":6,"box":{"x":520,"y":692,"width":161,"height":11}},{"id":"14f6668e-3aad-47aa-b7bf-d32b0acd3a88","block_type":"box","text":"BlackRock International Fund","page_number":6,"box":{"x":554,"y":708,"width":203,"height":9}},{"id":"aa8e9df3-4736-4863-995e-0f10061aaf16","block_type":"box","text":"BlackRock Strategic Global Bond Fund, Inc.","page_number":6,"box":{"x":520,"y":739,"width":320,"height":11}},{"id":"71d405b5-e8fb-42ff-98ca-505b4ef5ed73","block_type":"box","text":"BlackRock Unconstrained Equity Fund","page_number":6,"box":{"x":520,"y":770,"width":283,"height":11}},{"id":"cbc05e42-ebff-4da5-9ca4-9aa40ccda57e","block_type":"box","text":"BlackRock Variable Series Funds, Inc.","page_number":6,"box":{"x":520,"y":801,"width":277,"height":11}},{"id":"dfad3732-4eba-4313-a2dd-4dc41415db6a","block_type":"box","text":"BlackRock 60/40 Target Allocation ETF V.I.","page_number":6,"box":{"x":554,"y":816,"width":304,"height":12}},{"id":"0a75c78a-3cf1-4da2-ada6-07b579f57030","block_type":"box","text":"Fund","page_number":6,"box":{"x":554,"y":832,"width":38,"height":9}},{"id":"ba290712-c949-45d3-aeda-285a9af7bdf0","block_type":"box","text":"BlackRock Advantage Large Cap Core V.I.","page_number":6,"box":{"x":554,"y":847,"width":298,"height":12}},{"id":"db74a7f5-8cdc-4976-bc22-96e62131d54e","block_type":"box","text":"Fund","page_number":6,"box":{"x":554,"y":863,"width":38,"height":9}},{"id":"724160c2-23ac-4865-9256-b1d95dd9a021","block_type":"box","text":"BlackRock Advantage Large Cap Value V.I.","page_number":6,"box":{"x":554,"y":878,"width":305,"height":12}},{"id":"717f83ab-9be9-4151-ae0c-f2d82cb107d9","block_type":"box","text":"Fund","page_number":6,"box":{"x":554,"y":894,"width":38,"height":9}},{"id":"7a9eabb0-048a-472e-880d-d673f852a233","block_type":"box","text":"BlackRock Advantage SMID Cap V.I. Fund","page_number":6,"box":{"x":554,"y":909,"width":298,"height":12}},{"id":"f59dc6ec-8742-442b-bf92-671af83e6b4d","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":6,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"00552ca2-f078-4df3-b7e5-edc1aa06c906","block_type":"box","text":"BlackRock Basic Value V.I. Fund","page_number":7,"box":{"x":150,"y":88,"width":234,"height":9}},{"id":"712ef7e6-1ebe-4103-ae90-f7f8b85c9499","block_type":"box","text":"BlackRock Capital Appreciation V.I. Fund","page_number":7,"box":{"x":150,"y":103,"width":293,"height":12}},{"id":"c97bb7cb-652c-420b-8625-a49bb8fc47c4","block_type":"box","text":"BlackRock Equity Dividend V.I. Fund","page_number":7,"box":{"x":150,"y":119,"width":264,"height":11}},{"id":"f9c3a463-be9a-4c0f-91aa-c799e1432286","block_type":"box","text":"BlackRock Global Allocation V.I. Fund","page_number":7,"box":{"x":150,"y":134,"width":273,"height":9}},{"id":"f0c513ff-44d3-4337-b105-1074c00c6b9a","block_type":"box","text":"BlackRock Government Money Market V.I.","page_number":7,"box":{"x":150,"y":150,"width":302,"height":11}},{"id":"f6543ff6-e678-4ad7-889a-c446c7d8bf4f","block_type":"box","text":"Fund","page_number":7,"box":{"x":150,"y":165,"width":38,"height":9}},{"id":"e69d2de2-66cb-4468-88e9-de21a19ded49","block_type":"box","text":"BlackRock International Index V.I. Fund","page_number":7,"box":{"x":150,"y":181,"width":281,"height":9}},{"id":"70aa65e9-8d5a-4bb3-855e-d63d02128794","block_type":"box","text":"BlackRock International V.I. Fund","page_number":7,"box":{"x":150,"y":196,"width":238,"height":9}},{"id":"25a09320-9195-49f7-a4a7-bb91ab09feb6","block_type":"box","text":"BlackRock Large Cap Focus Growth V.I. Fund","page_number":7,"box":{"x":554,"y":88,"width":323,"height":11}},{"id":"6bff57be-387c-4f1c-a409-bc5c631b0b4b","block_type":"box","text":"BlackRock Managed Volatility V.I. Fund","page_number":7,"box":{"x":554,"y":103,"width":283,"height":12}},{"id":"423f55f0-8d78-45eb-9b31-5df06875fc5d","block_type":"box","text":"BlackRock S&P 500 Index V.I. Fund","page_number":7,"box":{"x":554,"y":119,"width":256,"height":9}},{"id":"aa9c0331-daa0-4358-baad-a184f4a7b1a9","block_type":"box","text":"BlackRock Small Cap Index V.I. Fund","page_number":7,"box":{"x":554,"y":134,"width":265,"height":12}},{"id":"46a31442-3e43-4ce3-bb89-bd2a3f027dc4","block_type":"box","text":"BlackRock Variable Series Funds II, Inc.","page_number":7,"box":{"x":520,"y":165,"width":299,"height":11}},{"id":"67bcc1ce-c9ee-4343-86d9-2a86d52f7857","block_type":"box","text":"BlackRock High Yield V.I. Fund","page_number":7,"box":{"x":554,"y":181,"width":227,"height":11}},{"id":"d6b86135-c8de-4ae7-b41d-8a7705f539d8","block_type":"box","text":"BlackRock Total Return V.I. Fund","page_number":7,"box":{"x":554,"y":196,"width":238,"height":9}},{"id":"8a72a312-4df1-4c5b-8ad6-3b2f6924631e","block_type":"box","text":"Shareholders should retain this Supplement for future reference.","page_number":7,"box":{"x":267,"y":227,"width":470,"height":12}},{"id":"6af33977-31b2-45f0-a11f-688b313beff0","block_type":"box","text":"SAI-GLOBAL-1026SUP","page_number":7,"box":{"x":116,"y":258,"width":175,"height":9}},{"id":"f3b947ca-37e4-4063-91d6-9b2570569686","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":7,"box":{"x":636,"y":981,"width":176,"height":7}},{"id":"9e76ff94-b0ba-4f63-bb04-0e71c053febb","block_type":"box","text":"STATEMENT OF ADDITIONAL INFORMATION","page_number":8,"box":{"x":271,"y":83,"width":435,"height":11}},{"id":"54bf60f4-b47a-44be-8d85-abda36830f83","block_type":"box","text":"BlackRock Funds II","page_number":8,"box":{"x":369,"y":120,"width":240,"height":14}},{"id":"347b3fcc-8b58-4be5-abcc-9072516b314d","block_type":"box","text":"100 Bellevue Parkway, Wilmington, Delaware 19809 • Phone No. (800) 441-7762","page_number":8,"box":{"x":118,"y":153,"width":742,"height":15}},{"id":"920faec4-6b67-47ab-9c45-2515133b7336","block_type":"box","text":"This Statement of Additional Information of BlackRock Global Dividend Portfolio (the “Portfolio” or the","page_number":8,"box":{"x":101,"y":211,"width":778,"height":10}},{"id":"f562f2ee-d96c-48fc-9555-926c3ba4ac59","block_type":"box","text":"“Fund”), a series of BlackRock Funds II (the “Trust”), is not a prospectus and should be read in conjunction","page_number":8,"box":{"x":69,"y":226,"width":806,"height":12}},{"id":"8c54f673-ac86-44d1-a7ef-2bdec1c0c857","block_type":"box","text":"with the Prospectuses of the Portfolio, dated September 28, 2026, as they may be amended or supplemented","page_number":8,"box":{"x":68,"y":241,"width":831,"height":12}},{"id":"41695afa-b57a-4a9d-a6f4-3bb53d03cbc7","block_type":"box","text":"from time to time (each, a “Prospectus”), which have been filed with the Securities and Exchange Commission","page_number":8,"box":{"x":69,"y":256,"width":835,"height":12}},{"id":"3796c5cd-fa07-439e-bec7-0b55566aa7ef","block_type":"box","text":"(the “Commission” or the “SEC”) and can be obtained, without charge, by calling (800) 441-7762 or by writing","page_number":8,"box":{"x":69,"y":271,"width":835,"height":12}},{"id":"fae021b3-5ce4-44a6-9112-24176c566b6b","block_type":"box","text":"to the Portfolio at the above address. Part I of this Statement of Additional Information and the portions of","page_number":8,"box":{"x":69,"y":286,"width":808,"height":12}},{"id":"3fc7607f-20c9-4ca2-a3e8-8d61167e620f","block_type":"box","text":"Part II of this Statement of Additional Information that relate to the Portfolio have been incorporated by","page_number":8,"box":{"x":70,"y":301,"width":786,"height":12}},{"id":"a4ea8870-a50a-402e-ae16-04b6fbf3d2f7","block_type":"box","text":"reference into the Portfolio’s Prospectuses. The portions of Part II of this Statement of Additional Information","page_number":8,"box":{"x":70,"y":317,"width":829,"height":11}},{"id":"b9b4cdc5-c9aa-4357-a823-e80cfbd45119","block_type":"box","text":"that do not relate to the Portfolio do not form a part of the Portfolio’s Statement of Additional Information,","page_number":8,"box":{"x":69,"y":332,"width":805,"height":11}},{"id":"92ca080c-3906-48d9-995c-331f66550760","block_type":"box","text":"have not been incorporated by reference into the Portfolio’s Prospectuses and should not be relied upon by","page_number":8,"box":{"x":70,"y":347,"width":815,"height":12}},{"id":"0396bdd6-4eec-447f-8518-85fa98dd1de3","block_type":"box","text":"investors in the Portfolio. The audited financial statements of the Portfolio are incorporated into this","page_number":8,"box":{"x":70,"y":362,"width":762,"height":11}},{"id":"03ba8366-5b36-44a2-9c44-7b84db9bfd4d","block_type":"box","text":"Statement of Additional Information by reference to the Portfolio’s Annual Financial Statement and Additional","page_number":8,"box":{"x":69,"y":377,"width":837,"height":12}},{"id":"e70b5313-5c04-48a5-9918-c78555383ece","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":8,"box":{"x":70,"y":392,"width":818,"height":12}},{"id":"7f924461-5125-48b8-80f3-8de6a5c9ec88","block_type":"box","text":"Financial Statements”). You may request a copy of the 2026 Annual Financial Statements at no charge by","page_number":8,"box":{"x":70,"y":407,"width":803,"height":12}},{"id":"eed7043c-7b6d-4d46-8b2f-a3201373a7b1","block_type":"box","text":"calling (800) 441-7762 between 8:00 a.m. and 6:00 p.m. Eastern time on any business day.","page_number":8,"box":{"x":69,"y":422,"width":693,"height":12}},{"id":"2a833e92-bf08-4bca-8edc-40248cc71ece","block_type":"box","text":"References to the Investment Company Act of 1940, as amended (the “Investment Company Act” or the","page_number":8,"box":{"x":103,"y":445,"width":786,"height":12}},{"id":"ca208439-6fe8-438b-a6ef-6d3403f7e3b5","block_type":"box","text":"“1940 Act”), or other applicable law, will include any rules promulgated thereunder and any guidance,","page_number":8,"box":{"x":69,"y":460,"width":772,"height":12}},{"id":"fba1a1b2-b5e5-4331-aa0f-28e0e727c262","block_type":"box","text":"interpretations or modifications by the Commission, Commission staff or other authority with appropriate","page_number":8,"box":{"x":70,"y":475,"width":804,"height":12}},{"id":"9f1f608d-6b43-4dee-8d0b-6b8e6d59ed4f","block_type":"box","text":"jurisdiction, including court interpretations, and exemptive, no-action or other relief or permission from the","page_number":8,"box":{"x":67,"y":490,"width":819,"height":12}},{"id":"2df8898e-105c-404e-b1a4-ba3da41a8042","block_type":"box","text":"Commission, Commission staff or other authority.","page_number":8,"box":{"x":70,"y":506,"width":378,"height":11}},{"id":"511feb30-3c1e-4f10-aee8-1cdc3dc0aa12","block_type":"box","text":"Class","page_number":8,"box":{"x":69,"y":534,"width":31,"height":7}},{"id":"fc734019-3b8b-45df-9628-fb11b16af58b","block_type":"box","text":"Ticker Symbol","page_number":8,"box":{"x":827,"y":534,"width":82,"height":9}},{"id":"a8a98bdf-5a56-4885-a5b3-9067eccbba38","block_type":"box","text":"Investor A Shares","page_number":8,"box":{"x":70,"y":552,"width":124,"height":9}},{"id":"efb61e7d-96e5-4b96-9453-b90af12eedb1","block_type":"box","text":"..........................................................................","page_number":8,"box":{"x":199,"y":559,"width":597,"height":2}},{"id":"376e5585-d95e-47ad-a478-c641c329aa87","block_type":"box","text":"BABDX","page_number":8,"box":{"x":845,"y":552,"width":48,"height":9}},{"id":"d96d122a-6412-4d1a-bcd1-5ce8d01e2b02","block_type":"box","text":"Investor C Shares.","page_number":8,"box":{"x":70,"y":567,"width":131,"height":9}},{"id":"1deaf7b5-8665-4b22-88af-066db2b6ad8a","block_type":"box","text":".........................................................................","page_number":8,"box":{"x":208,"y":574,"width":588,"height":2}},{"id":"64bbcec4-e995-4b15-9ecc-31d7ce036250","block_type":"box","text":"BCBDX","page_number":8,"box":{"x":845,"y":567,"width":48,"height":9}},{"id":"0a5c1388-ae3b-4611-9621-2079129623cc","block_type":"box","text":"Institutional Shares","page_number":8,"box":{"x":70,"y":582,"width":137,"height":9}},{"id":"fe86a847-9073-46c0-9b91-829fb06a2a1c","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . BIBDX","page_number":8,"box":{"x":216,"y":582,"width":674,"height":9}},{"id":"d6f5a893-086c-45ac-adc1-3883fd2a8923","block_type":"box","text":"Class K Shares","page_number":8,"box":{"x":69,"y":597,"width":109,"height":9}},{"id":"08b51731-7c4e-4751-aecf-bad65ba5165b","block_type":"box","text":"............................................................................","page_number":8,"box":{"x":183,"y":605,"width":613,"height":1}},{"id":"eab76d4d-6d43-43de-8ab8-bb14fa45eb35","block_type":"box","text":"BKBDX","page_number":8,"box":{"x":845,"y":597,"width":48,"height":9}},{"id":"2c674876-0d64-46a6-bac9-e141f9d87741","block_type":"box","text":"BlackRock Advisors, LLC — Manager","page_number":8,"box":{"x":260,"y":652,"width":460,"height":19}},{"id":"573f90a8-5581-41db-b1e0-732133b64960","block_type":"box","text":"BlackRock Investments, LLC — Distributor","page_number":8,"box":{"x":222,"y":674,"width":536,"height":18}},{"id":"a2328849-ec51-4fd6-b9dd-9eff228488e9","block_type":"box","text":"The date of this Statement of Additional Information is September 28, 2026.","page_number":8,"box":{"x":199,"y":734,"width":579,"height":12}},{"id":"5cb83155-93c0-41f6-9522-fec568fb33da","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":8,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d48f17cd-4f23-4571-9ec5-12ec4962303e","block_type":"box","text":"TABLE OF CONTENTS","page_number":9,"box":{"x":411,"y":45,"width":155,"height":9}},{"id":"52e37d0f-65f3-4141-9c39-bd65dee936b8","block_type":"box","text":"Page","page_number":9,"box":{"x":869,"y":73,"width":28,"height":9}},{"id":"ce5bda2e-c008-417c-a4f0-96f7cc7a3c0f","block_type":"box","text":"PART I","page_number":9,"box":{"x":69,"y":92,"width":47,"height":9}},{"id":"959e257e-3426-4ec6-97e1-c39c04d4de43","block_type":"box","text":"Investment Objective and Policies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-1","page_number":9,"box":{"x":70,"y":108,"width":839,"height":11}},{"id":"53af6893-2c6b-4fd9-a3c7-a67fbac33d75","block_type":"box","text":"Investment Restrictions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-5","page_number":9,"box":{"x":70,"y":125,"width":839,"height":9}},{"id":"2ddd976a-6622-4583-b050-a04a54e907e5","block_type":"box","text":"Information on Trustees and Officers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-7","page_number":9,"box":{"x":70,"y":141,"width":838,"height":9}},{"id":"0024c2da-d3f5-463a-9e8d-ac9d01b637db","block_type":"box","text":"Management, Advisory and Other Service Arrangements. . . . . . . . .","page_number":9,"box":{"x":70,"y":158,"width":469,"height":11}},{"id":"2b48f43a-5b3b-4b85-a5b7-fe89f9d3947c","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-19","page_number":9,"box":{"x":545,"y":158,"width":364,"height":8}},{"id":"d2599636-041f-4033-9315-c41166e5e638","block_type":"box","text":"Information on Sales Charges and Distribution Related Expenses .","page_number":9,"box":{"x":70,"y":174,"width":469,"height":11}},{"id":"49d47d91-4a9f-4612-bbb1-555eeb3c9843","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-23","page_number":9,"box":{"x":545,"y":174,"width":364,"height":9}},{"id":"677a159c-5eac-489d-804d-28701181c74c","block_type":"box","text":"Computation of Offering Price Per Share . . . . . . . . . . . . . . . . . . . .","page_number":9,"box":{"x":69,"y":190,"width":446,"height":11}},{"id":"d10c92bb-17f0-47bd-9f04-bc6eedff9c1a","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-24","page_number":9,"box":{"x":521,"y":190,"width":388,"height":9}},{"id":"3f461bcd-1b25-4ded-b3bd-554c7878ee3a","block_type":"box","text":"Portfolio Transactions and Brokerage . .","page_number":9,"box":{"x":69,"y":206,"width":283,"height":12}},{"id":"d819baee-874c-4e57-b3d7-bd86c792d823","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-24","page_number":9,"box":{"x":358,"y":207,"width":551,"height":8}},{"id":"2b4b7eaa-b0e7-4a0e-8ed5-ffdef241a7d0","block_type":"box","text":"Additional Information. . . . . . . . . . . . . . . . . . .","page_number":9,"box":{"x":68,"y":223,"width":308,"height":9}},{"id":"605da8c9-450e-46e4-8806-fc79983f7d1f","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-26","page_number":9,"box":{"x":382,"y":223,"width":527,"height":9}},{"id":"98a845b0-947d-468d-a7b1-dcef11c0d5cd","block_type":"box","text":"Financial Statements","page_number":9,"box":{"x":70,"y":239,"width":148,"height":9}},{"id":"7799010e-65ea-445c-9f71-f6b9af1cbc5e","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-29","page_number":9,"box":{"x":227,"y":239,"width":682,"height":9}},{"id":"c4b19081-a357-4ad1-81bf-384488962cff","block_type":"box","text":"PART II","page_number":9,"box":{"x":69,"y":271,"width":52,"height":9}},{"id":"189a9977-9d6b-4b7c-bb81-5a1c76c80abd","block_type":"box","text":"Investment Risks and Considerations . . . . . . . .","page_number":9,"box":{"x":70,"y":287,"width":330,"height":9}},{"id":"0fbf73d5-bf67-4fd9-a214-f117438d1737","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-1","page_number":9,"box":{"x":407,"y":287,"width":502,"height":9}},{"id":"195b3727-1e70-4582-8147-3ef7b49334fa","block_type":"box","text":"Management and Other Service Arrangements . . . . . . . . . . . . . . . .","page_number":9,"box":{"x":70,"y":304,"width":461,"height":11}},{"id":"728219c8-677f-4430-a199-9ce348bbc84a","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-82","page_number":9,"box":{"x":537,"y":304,"width":372,"height":9}},{"id":"c954c92c-5c43-4bd0-af89-e2c4d9df8e88","block_type":"box","text":"Selective Disclosure of Portfolio Holdings. . . . . . . . . . . . . . . . . . .","page_number":9,"box":{"x":69,"y":320,"width":446,"height":11}},{"id":"7dfeb515-d57e-4b60-928d-1e050c882c7f","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-84","page_number":9,"box":{"x":521,"y":320,"width":388,"height":9}},{"id":"c505234c-1dce-4b8f-ab6b-9e4cb193bbe5","block_type":"box","text":"Purchase of Shares","page_number":9,"box":{"x":69,"y":336,"width":139,"height":9}},{"id":"e1b3c571-572c-4204-8bc9-50ab704f593d","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-97","page_number":9,"box":{"x":211,"y":336,"width":697,"height":9}},{"id":"df34a58f-0d51-46ba-9db6-a9bb5f61d461","block_type":"box","text":"Redemption of Shares . .","page_number":9,"box":{"x":70,"y":353,"width":176,"height":11}},{"id":"44b3a03e-f831-46d0-9d00-fd0403fad2ea","block_type":"box","text":"........................................................................... I","page_number":9,"box":{"x":252,"y":353,"width":619,"height":9}},{"id":"70886ad0-84ee-4004-abd2-1b6997dba759","block_type":"box","text":"I-114","page_number":9,"box":{"x":874,"y":353,"width":35,"height":9}},{"id":"c221ae50-5472-46f5-a99f-2f6fe0c2df5c","block_type":"box","text":"Shareholder Services . .","page_number":9,"box":{"x":69,"y":369,"width":168,"height":9}},{"id":"00958fae-ed6f-40ab-83f7-3008ce83b281","block_type":"box","text":"............................................................................ I","page_number":9,"box":{"x":244,"y":369,"width":627,"height":9}},{"id":"d2d5a3e4-6bea-4ca5-9416-bf58bd3ad58f","block_type":"box","text":"I-118","page_number":9,"box":{"x":874,"y":369,"width":35,"height":9}},{"id":"3d47c365-318a-4ca6-bfca-50d47e2ad446","block_type":"box","text":"Pricing of Shares","page_number":9,"box":{"x":69,"y":385,"width":119,"height":12}},{"id":"5a4843c0-a82a-44b6-ada6-8b7fab25340f","block_type":"box","text":".................................................................................. I","page_number":9,"box":{"x":195,"y":386,"width":676,"height":8}},{"id":"3154a8a9-1f7d-4898-adcf-b1ceb3626b0c","block_type":"box","text":"I-122","page_number":9,"box":{"x":874,"y":386,"width":35,"height":8}},{"id":"9146f88a-313e-4547-bbf2-f23160c04c46","block_type":"box","text":"Portfolio Transactions and Brokerage . .","page_number":9,"box":{"x":69,"y":402,"width":283,"height":11}},{"id":"cfa35fa2-feab-450b-a8e7-b55beccaabb5","block_type":"box","text":".............................................................. I","page_number":9,"box":{"x":358,"y":402,"width":513,"height":9}},{"id":"13f45f33-5c88-4766-b908-4e5032e04dd8","block_type":"box","text":"I-124","page_number":9,"box":{"x":874,"y":402,"width":35,"height":9}},{"id":"0b452386-1869-44ac-b3a0-a3045a3d7ae9","block_type":"box","text":"Dividends and Taxes . .","page_number":9,"box":{"x":70,"y":418,"width":159,"height":9}},{"id":"2b734eaf-38fa-466e-92c7-c299432bb449","block_type":"box","text":"............................................................................. I","page_number":9,"box":{"x":236,"y":418,"width":635,"height":9}},{"id":"0102ca1e-e724-411f-b92a-59b9ca624ebf","block_type":"box","text":"I-129","page_number":9,"box":{"x":874,"y":418,"width":35,"height":9}},{"id":"461d4008-27f0-4f9e-b4ea-0e5d5a930f45","block_type":"box","text":"Performance Data","page_number":9,"box":{"x":69,"y":435,"width":129,"height":9}},{"id":"3e97aca4-5cea-4d71-942e-149efbdcefcd","block_type":"box","text":"................................................................................. I","page_number":9,"box":{"x":203,"y":435,"width":668,"height":8}},{"id":"7563b0db-a391-47f8-b770-e5bedbbfd60f","block_type":"box","text":"I-137","page_number":9,"box":{"x":874,"y":435,"width":34,"height":9}},{"id":"597801f5-9404-4aa0-aab4-5bbe08c0ff74","block_type":"box","text":"Proxy Voting Policies and Procedures. . . . . . . . . . . . . . . . . . . . . .","page_number":9,"box":{"x":69,"y":451,"width":437,"height":11}},{"id":"aef2ec50-c457-47bf-bb49-50bad62d0da6","block_type":"box","text":"........................................... I","page_number":9,"box":{"x":513,"y":451,"width":358,"height":9}},{"id":"2a74ee2d-5b74-44f5-9c3e-d357fc34776b","block_type":"box","text":"I-139","page_number":9,"box":{"x":874,"y":451,"width":35,"height":9}},{"id":"72b4ccc9-c662-44d5-b8c1-46f508f9bd56","block_type":"box","text":"General Information","page_number":9,"box":{"x":69,"y":467,"width":140,"height":9}},{"id":"9e590f71-dce2-4567-97f6-5e4baf2a1ff6","block_type":"box","text":"............................................................................... I","page_number":9,"box":{"x":219,"y":468,"width":652,"height":8}},{"id":"d6c1cf3f-e2d7-4e26-a94a-f4d7485fc86a","block_type":"box","text":"I-139","page_number":9,"box":{"x":874,"y":467,"width":35,"height":9}},{"id":"e7fa558b-784f-4f05-ac90-6d7fd0ee1d8a","block_type":"box","text":"Appendix A — Description of Bond Ratings. . . .","page_number":9,"box":{"x":68,"y":484,"width":332,"height":11}},{"id":"b37aa1bc-c361-4685-adde-97679251f0f1","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A-1","page_number":9,"box":{"x":407,"y":484,"width":502,"height":9}},{"id":"8d054b14-e6c7-40f3-a5f8-cd7fd535fdca","block_type":"box","text":"Appendix B — Proxy Voting Policies . . . . . .","page_number":9,"box":{"x":68,"y":500,"width":300,"height":11}},{"id":"e47ba40d-3ccb-4e96-a603-8417c2205ec3","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B-1","page_number":9,"box":{"x":374,"y":500,"width":535,"height":9}},{"id":"8e369c18-2d01-4abb-954f-32d58c70e8f8","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":9,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a1005129-5028-41a6-ab67-1223fea559e0","block_type":"box","text":"PART I: INFORMATION ABOUT THE PORTFOLIO","page_number":10,"box":{"x":319,"y":45,"width":341,"height":9}},{"id":"23c3d4dc-0978-4cf7-af80-5be1d44f3553","block_type":"box","text":"Part I of this Statement of Additional Information (“SAI”) sets forth information about BlackRock Global Dividend","page_number":10,"box":{"x":102,"y":67,"width":800,"height":11}},{"id":"5afce13c-8d1f-4297-8056-402b5059a955","block_type":"box","text":"Portfolio (“Global Dividend Portfolio” or the “Portfolio” or the “Fund”), a series of BlackRock Funds II (the “Trust”). It","page_number":10,"box":{"x":69,"y":82,"width":830,"height":11}},{"id":"fa05d40c-181e-4762-a50c-a7ccb5301057","block_type":"box","text":"includes information about the Trust’s Board of Trustees (the “Board” or the “Board of Trustees”), the management","page_number":10,"box":{"x":70,"y":98,"width":826,"height":11}},{"id":"3146994f-4fed-42de-bec5-88b23cfe3847","block_type":"box","text":"services provided to and the management fees paid by the Portfolio and information about other fees applicable to","page_number":10,"box":{"x":69,"y":113,"width":821,"height":11}},{"id":"bc21ff80-a00c-4769-a574-3ef8c5a1c532","block_type":"box","text":"and services provided to the Portfolio. This Part I of this SAI should be read in conjunction with the Portfolio’s","page_number":10,"box":{"x":69,"y":128,"width":783,"height":11}},{"id":"b3b922ae-baae-4b53-82c5-c7aa315b1917","block_type":"box","text":"Prospectuses and those portions of Part II of this SAI that pertain to the Portfolio.","page_number":10,"box":{"x":69,"y":143,"width":586,"height":11}},{"id":"2c58ff43-724a-4b74-89a1-6d8fc46bb18b","block_type":"box","text":"I. Investment Objective and Policies","page_number":10,"box":{"x":69,"y":173,"width":262,"height":11}},{"id":"ce6591f0-c99d-4511-adc1-5fd063a752e9","block_type":"box","text":"In implementing the Portfolio’s investment strategy, from time to time, BlackRock Advisors, LLC (“BlackRock” or","page_number":10,"box":{"x":102,"y":196,"width":798,"height":11}},{"id":"59bda853-2bf5-4228-87a4-340fad923f92","block_type":"box","text":"the “Manager”), the Portfolio’s investment manager, may consider and employ techniques and strategies designed to","page_number":10,"box":{"x":68,"y":211,"width":840,"height":11}},{"id":"f3962fc2-8723-465d-9095-82b58011f8cc","block_type":"box","text":"minimize and defer the U.S. federal income taxes which may be incurred by shareholders in connection with their","page_number":10,"box":{"x":69,"y":226,"width":805,"height":11}},{"id":"15301701-96ec-4d11-9753-d8a83e1ea46e","block_type":"box","text":"investment in the Portfolio.","page_number":10,"box":{"x":70,"y":241,"width":191,"height":9}},{"id":"071bd906-2b8f-4afa-880c-0b39774aaf3c","block_type":"box","text":"Set forth below is a listing of some of the types of investments and investment strategies that the Portfolio may","page_number":10,"box":{"x":102,"y":264,"width":800,"height":11}},{"id":"74dbb806-7439-4b7f-b9e7-f963894792c2","block_type":"box","text":"use, and the risks and considerations associated with those investments and investment strategies. Please see Part","page_number":10,"box":{"x":69,"y":279,"width":837,"height":11}},{"id":"4a68df98-627f-4b7c-9f01-a1e3c6e371fd","block_type":"box","text":"II of this SAI for further information on these investments and investment strategies. Information contained in Part II","page_number":10,"box":{"x":70,"y":294,"width":828,"height":11}},{"id":"7a2d59f6-994a-44c2-997f-efb929fa16fc","block_type":"box","text":"about the risks and considerations associated with investments and/or investment strategies applies only to the","page_number":10,"box":{"x":69,"y":309,"width":805,"height":11}},{"id":"fb55abc7-e626-4986-bad2-913e06ab1708","block_type":"box","text":"extent the Portfolio makes each type of investment or uses each investment strategy. Also set forth below is a listing","page_number":10,"box":{"x":69,"y":324,"width":837,"height":12}},{"id":"05c24f70-b4cb-4ae1-8ad0-d99bd40b0d99","block_type":"box","text":"of the proxy voting policy and related guidelines applicable to the Fund. Please see “Proxy Voting Policies and","page_number":10,"box":{"x":69,"y":339,"width":777,"height":12}},{"id":"3d7fa575-951c-4376-ac87-ef1535621f49","block_type":"box","text":"Procedures” in Part II of this SAI for further information about these policies. A copy of each policy is included in","page_number":10,"box":{"x":69,"y":355,"width":801,"height":11}},{"id":"8c193fbb-e062-4301-84f8-5a33988048eb","block_type":"box","text":"Appendix B.","page_number":10,"box":{"x":68,"y":370,"width":83,"height":11}},{"id":"ff40233d-aa54-4c44-a203-73d7cce0e456","block_type":"box","text":"Information that does not apply to the Portfolio does not form a part of the Portfolio’s SAI and should not be","page_number":10,"box":{"x":102,"y":392,"width":774,"height":12}},{"id":"e98bd045-3537-450f-8620-7c28dc28b6b6","block_type":"box","text":"relied on by investors in the Portfolio. Only information that is clearly identified as applicable to the Portfolio is","page_number":10,"box":{"x":69,"y":407,"width":787,"height":12}},{"id":"dc1b0e35-ec6e-48be-a283-1385c34fadb0","block_type":"box","text":"considered to form a part of the Portfolio’s SAI.","page_number":10,"box":{"x":69,"y":423,"width":339,"height":11}},{"id":"eb67a9f9-a983-45c9-aeb4-3f13a1d8cf76","block_type":"box","text":"Global Dividend Portfolio","page_number":10,"box":{"x":745,"y":451,"width":144,"height":8}},{"id":"81e29b4c-f606-489d-90d6-315ba34b785f","block_type":"box","text":"Asset-Backed Securities","page_number":10,"box":{"x":72,"y":471,"width":161,"height":8}},{"id":"ba7e38a0-543b-4701-8932-1e9b05e28de9","block_type":"box","text":"X","page_number":10,"box":{"x":813,"y":471,"width":8,"height":8}},{"id":"21128ec2-b660-4232-870d-10a260ae1e4d","block_type":"box","text":"Asset-Based Securities","page_number":10,"box":{"x":72,"y":491,"width":152,"height":8}},{"id":"c74b6d55-4843-4f13-a9ee-bef16507cd38","block_type":"box","text":"X","page_number":10,"box":{"x":813,"y":491,"width":8,"height":8}},{"id":"76eb567c-60cc-4d0d-a296-e2dde78130b3","block_type":"box","text":"Precious Metal-Related Securities","page_number":10,"box":{"x":83,"y":511,"width":215,"height":8}},{"id":"24ab712b-6b5f-46d0-b640-860a12ce8ab9","block_type":"box","text":"X","page_number":10,"box":{"x":813,"y":511,"width":8,"height":8}},{"id":"0f8e4429-9240-4fd4-bd0b-0c9fa959a4d3","block_type":"box","text":"Borrowing and Leverage","page_number":10,"box":{"x":73,"y":531,"width":157,"height":10}},{"id":"91beea1d-c681-47fd-a1ed-df2ec743638f","block_type":"box","text":"X","page_number":10,"box":{"x":813,"y":531,"width":8,"height":8}},{"id":"964aeb38-0921-43a2-b885-07aff38a37d8","block_type":"box","text":"Cash Management","page_number":10,"box":{"x":73,"y":551,"width":122,"height":10}},{"id":"0c0d34be-aea7-4de3-9ae2-063b082007b2","block_type":"box","text":"X","page_number":10,"box":{"x":813,"y":552,"width":8,"height":7}},{"id":"5961ba31-5566-46ab-a69e-3fb02203d372","block_type":"box","text":"Collateralized Debt Obligations","page_number":10,"box":{"x":73,"y":572,"width":202,"height":10}},{"id":"a48fb49c-c621-406f-ba80-8780e63f345c","block_type":"box","text":"X","page_number":10,"box":{"x":813,"y":572,"width":8,"height":8}},{"id":"93614570-2a55-46ca-be08-dc6d45ba8ce9","block_type":"box","text":"Collateralized Bond Obligations","page_number":10,"box":{"x":83,"y":592,"width":198,"height":10}},{"id":"ca2af8e0-49b5-4e4e-89ee-4144984316b4","block_type":"box","text":"X","page_number":10,"box":{"x":813,"y":592,"width":8,"height":8}},{"id":"dda7206d-87f5-4dea-b439-65b7e9d70fdf","block_type":"box","text":"Collateralized Loan Obligations","page_number":10,"box":{"x":83,"y":612,"width":196,"height":10}},{"id":"9ef03456-11e2-460a-88e3-c8a4c3814cf7","block_type":"box","text":"X","page_number":10,"box":{"x":813,"y":612,"width":8,"height":8}},{"id":"3185e07d-6b27-4ae3-aa72-24e96e505836","block_type":"box","text":"Commercial Paper","page_number":10,"box":{"x":73,"y":632,"width":120,"height":10}},{"id":"a83a5305-f326-4471-a6b0-0079324e235c","block_type":"box","text":"X","page_number":10,"box":{"x":813,"y":632,"width":8,"height":8}},{"id":"e7ae20ec-94ee-4f88-89c5-a7a6367af1b3","block_type":"box","text":"Commodity-Linked Derivative Instruments and Hybrid Instruments","page_number":10,"box":{"x":73,"y":652,"width":431,"height":10}},{"id":"632d2be7-2194-437c-9e50-a077286c0f74","block_type":"box","text":"X","page_number":10,"box":{"x":813,"y":652,"width":8,"height":8}},{"id":"83d1f4a0-a321-4df7-8e88-1958e26347e8","block_type":"box","text":"Qualifying Hybrid Instruments","page_number":10,"box":{"x":83,"y":672,"width":187,"height":10}},{"id":"8b44d77e-77e2-4fbc-a3a8-f5070861589c","block_type":"box","text":"X","page_number":10,"box":{"x":813,"y":673,"width":8,"height":7}},{"id":"fdadb3c3-fb5b-4ba1-ac74-45ee7fb19739","block_type":"box","text":"Hybrid Instruments Without Principal Protection X","page_number":10,"box":{"x":83,"y":693,"width":738,"height":9}},{"id":"2c80a4aa-6e16-4da3-810b-e28fbdc94b3f","block_type":"box","text":"Limitations on Leverage","page_number":10,"box":{"x":83,"y":713,"width":151,"height":10}},{"id":"68b58644-d543-4974-a127-cb70e84d3b13","block_type":"box","text":"X","page_number":10,"box":{"x":813,"y":713,"width":8,"height":8}},{"id":"295f1148-070f-4d4e-a84d-42999e6d0051","block_type":"box","text":"Counterparty Risk","page_number":10,"box":{"x":83,"y":733,"width":114,"height":10}},{"id":"406fe393-bb0a-4d27-9764-deb245e14631","block_type":"box","text":"X","page_number":10,"box":{"x":813,"y":733,"width":8,"height":8}},{"id":"07a1b062-fe8d-4cb5-9790-1f90eac07dc7","block_type":"box","text":"Convertible Securities","page_number":10,"box":{"x":73,"y":753,"width":145,"height":8}},{"id":"8576f86c-433b-49a0-b491-8d7d993f3bba","block_type":"box","text":"X","page_number":10,"box":{"x":813,"y":753,"width":8,"height":8}},{"id":"7cc82ad3-32cb-45ab-8034-a22915a73e14","block_type":"box","text":"Corporate Loans","page_number":10,"box":{"x":73,"y":773,"width":107,"height":10}},{"id":"13161877-6d41-4b4a-aaec-574fd42d0bd7","block_type":"box","text":"X","page_number":10,"box":{"x":813,"y":773,"width":8,"height":8}},{"id":"073ab585-64bf-443c-8c7b-d176241ca44a","block_type":"box","text":"Direct Lending","page_number":10,"box":{"x":83,"y":793,"width":91,"height":10}},{"id":"571a61ca-de26-4eb6-b75c-c2dd9cb4851a","block_type":"box","text":"Credit Linked Securities","page_number":10,"box":{"x":73,"y":814,"width":157,"height":7}},{"id":"82f5c5b9-d957-4af5-92c9-62a9358c7dad","block_type":"box","text":"X","page_number":10,"box":{"x":813,"y":814,"width":8,"height":7}},{"id":"277ca0f3-10bc-4855-adf8-ccc75e8636c9","block_type":"box","text":"Debt Securities","page_number":10,"box":{"x":73,"y":834,"width":100,"height":8}},{"id":"4a6f9531-b372-4449-be8a-c6eea6977cae","block_type":"box","text":"X","page_number":10,"box":{"x":813,"y":834,"width":8,"height":8}},{"id":"5bdb747a-7d54-44c5-a523-9adffcadae1d","block_type":"box","text":"Floating and Variable Rate Securities","page_number":10,"box":{"x":83,"y":854,"width":234,"height":10}},{"id":"7c8765ec-b112-47b3-a0e3-39afab834866","block_type":"box","text":"Inflation-Indexed Bonds","page_number":10,"box":{"x":83,"y":874,"width":148,"height":8}},{"id":"bc62cda9-f027-4a18-b959-6e5f4eb182b0","block_type":"box","text":"X","page_number":10,"box":{"x":813,"y":874,"width":8,"height":8}},{"id":"56e686c5-8657-4acc-8545-f62a32b1ab00","block_type":"box","text":"Investment Grade Debt Obligations","page_number":10,"box":{"x":83,"y":894,"width":223,"height":10}},{"id":"a3875b02-e6dd-4696-a4ff-fda361a51265","block_type":"box","text":"X","page_number":10,"box":{"x":813,"y":894,"width":8,"height":8}},{"id":"fb2888eb-75ca-4413-8997-f4bf5ce45ba8","block_type":"box","text":"I-1","page_number":10,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"714c4b3a-015b-49d5-b1a2-9e30f1bca526","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":10,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"dc8a7865-eb66-4789-913f-35bd9619bd78","block_type":"box","text":"Global Dividend Portfolio","page_number":11,"box":{"x":745,"y":50,"width":144,"height":7}},{"id":"8e0aaa6a-2fdc-4863-b55d-58e16b2ac54a","block_type":"box","text":"High Yield Investments (“Junk Bonds”)","page_number":11,"box":{"x":83,"y":69,"width":246,"height":10}},{"id":"b5c23b8a-a56d-4de7-bf4a-a09fe423348b","block_type":"box","text":"X","page_number":11,"box":{"x":813,"y":69,"width":8,"height":8}},{"id":"f4da0199-74b3-45d4-aff6-0d871fb8689f","block_type":"box","text":"Mezzanine Investments","page_number":11,"box":{"x":93,"y":89,"width":149,"height":8}},{"id":"29622a3e-aeaf-4622-ad63-ffc1d6f45e44","block_type":"box","text":"X","page_number":11,"box":{"x":813,"y":89,"width":8,"height":8}},{"id":"aa28846b-7d4b-4e9e-8ec5-4c4d15fb8e4b","block_type":"box","text":"Pay-in-kind Bonds","page_number":11,"box":{"x":83,"y":109,"width":110,"height":10}},{"id":"3004d5d5-0e98-466c-8d79-e20807cec63b","block_type":"box","text":"X","page_number":11,"box":{"x":813,"y":109,"width":8,"height":8}},{"id":"414ada51-538e-4c0f-b0ec-99e48f44500e","block_type":"box","text":"Supranational Entities","page_number":11,"box":{"x":83,"y":129,"width":140,"height":10}},{"id":"f75d97f5-ddb6-4478-ba12-e79dad2c340b","block_type":"box","text":"X","page_number":11,"box":{"x":813,"y":130,"width":8,"height":7}},{"id":"183929bc-6a82-4edc-8f56-5e883a0cbb3a","block_type":"box","text":"Depositary Receipts (ADRs, EDRs and GDRs)","page_number":11,"box":{"x":73,"y":150,"width":296,"height":9}},{"id":"9280718f-7010-44c5-b50a-98f71d4ce417","block_type":"box","text":"X","page_number":11,"box":{"x":813,"y":150,"width":8,"height":7}},{"id":"e39f7da6-b99b-43c2-bd5a-8187c6b3922e","block_type":"box","text":"Derivatives","page_number":11,"box":{"x":73,"y":170,"width":72,"height":8}},{"id":"5ec2594b-7115-4194-9609-e8e1314ce494","block_type":"box","text":"X","page_number":11,"box":{"x":813,"y":170,"width":8,"height":8}},{"id":"0e4a3c99-cc78-476e-9d45-8282b1b5da54","block_type":"box","text":"Hedging","page_number":11,"box":{"x":83,"y":190,"width":51,"height":10}},{"id":"c19463ab-c28e-4735-a1f4-beb09463824e","block_type":"box","text":"X","page_number":11,"box":{"x":813,"y":190,"width":8,"height":8}},{"id":"06eeccfd-cb77-4ff5-923b-be4e1a42a192","block_type":"box","text":"Speculation","page_number":11,"box":{"x":83,"y":210,"width":74,"height":10}},{"id":"1bb6c4cc-a290-4d4b-a0e9-141c61b19d54","block_type":"box","text":"X","page_number":11,"box":{"x":813,"y":210,"width":8,"height":8}},{"id":"3d21693e-2d78-4ded-97b3-4a4c895dba1b","block_type":"box","text":"Risk Factors in Derivatives","page_number":11,"box":{"x":83,"y":230,"width":168,"height":8}},{"id":"971a5d09-3abb-4861-a485-2ea6da7b976c","block_type":"box","text":"X","page_number":11,"box":{"x":813,"y":230,"width":8,"height":8}},{"id":"1e4d2cfa-7ddc-462b-8a2b-bcade34c1c17","block_type":"box","text":"Correlation Risk","page_number":11,"box":{"x":93,"y":250,"width":101,"height":8}},{"id":"a7a559d0-b9ae-4211-9b29-96a6ec099f77","block_type":"box","text":"X","page_number":11,"box":{"x":813,"y":250,"width":8,"height":8}},{"id":"15c7e7a8-21d7-432a-b652-77e9c0f0635d","block_type":"box","text":"Counterparty Risk","page_number":11,"box":{"x":93,"y":271,"width":114,"height":9}},{"id":"9dcac570-9048-43ce-bd01-a262f3e951a4","block_type":"box","text":"X","page_number":11,"box":{"x":813,"y":271,"width":8,"height":7}},{"id":"e11a7b19-e25c-4bc0-a409-75427428f814","block_type":"box","text":"Credit Risk","page_number":11,"box":{"x":93,"y":291,"width":69,"height":8}},{"id":"98c258a5-bc74-45df-b3e6-2132f53f9c66","block_type":"box","text":"X","page_number":11,"box":{"x":813,"y":291,"width":8,"height":8}},{"id":"95fb98dd-8275-41d9-8bd7-cbc2403749cc","block_type":"box","text":"Currency Risk","page_number":11,"box":{"x":93,"y":311,"width":87,"height":10}},{"id":"3eeeae60-c9f3-4d3b-acbd-870575c9b2c8","block_type":"box","text":"X","page_number":11,"box":{"x":813,"y":311,"width":8,"height":8}},{"id":"e9e8a878-d821-480a-b50b-0b99d5a441c5","block_type":"box","text":"Illiquidity Risk","page_number":11,"box":{"x":93,"y":331,"width":87,"height":10}},{"id":"d51966ed-13e5-43f6-a843-d022f7390e29","block_type":"box","text":"X","page_number":11,"box":{"x":813,"y":331,"width":8,"height":8}},{"id":"e7a1553d-e9f4-4df2-a2a0-298f87d3b598","block_type":"box","text":"Index Risk","page_number":11,"box":{"x":93,"y":351,"width":65,"height":8}},{"id":"13b447b1-5715-4162-bd63-c9d4ff70b29f","block_type":"box","text":"X","page_number":11,"box":{"x":813,"y":351,"width":8,"height":8}},{"id":"7d9cd341-824c-49f2-bd06-3b195af75c8d","block_type":"box","text":"Legal Risk","page_number":11,"box":{"x":93,"y":371,"width":65,"height":10}},{"id":"27103513-d6e6-4a1a-8d77-3be2fe5545d3","block_type":"box","text":"X","page_number":11,"box":{"x":813,"y":371,"width":8,"height":8}},{"id":"44473f67-2b42-4aba-ad6b-dc206b15b52d","block_type":"box","text":"Leverage Risk","page_number":11,"box":{"x":93,"y":392,"width":88,"height":10}},{"id":"0ca1be2c-59eb-4909-83c3-20a77596e73b","block_type":"box","text":"X","page_number":11,"box":{"x":813,"y":392,"width":8,"height":7}},{"id":"64b9cdd1-b07e-437f-aeeb-c72063df5dac","block_type":"box","text":"Market Risk","page_number":11,"box":{"x":93,"y":412,"width":75,"height":8}},{"id":"a9064497-d5c8-4478-b473-c75a0438149f","block_type":"box","text":"X","page_number":11,"box":{"x":813,"y":412,"width":8,"height":8}},{"id":"083e11f7-8e99-433c-a8e3-e612cd839e58","block_type":"box","text":"Operational Risk","page_number":11,"box":{"x":93,"y":432,"width":104,"height":10}},{"id":"140a7e27-8139-485b-8545-3e4cec7b9901","block_type":"box","text":"X","page_number":11,"box":{"x":813,"y":432,"width":8,"height":8}},{"id":"7124e4a9-37f0-43d9-84c2-537d74fba37b","block_type":"box","text":"Valuation Risk","page_number":11,"box":{"x":92,"y":452,"width":90,"height":8}},{"id":"60392895-5938-4dd7-8bde-820cb4ce15ed","block_type":"box","text":"X","page_number":11,"box":{"x":813,"y":452,"width":8,"height":8}},{"id":"0827cf91-f0c2-4ca3-b4d9-a40b41694f27","block_type":"box","text":"Volatility Risk","page_number":11,"box":{"x":92,"y":472,"width":85,"height":10}},{"id":"5a6a0caf-219f-4ecf-9ebd-ddf03e3dad3b","block_type":"box","text":"X","page_number":11,"box":{"x":813,"y":472,"width":8,"height":8}},{"id":"1244996a-bdd4-4148-b7ee-00f0a1810463","block_type":"box","text":"Futures","page_number":11,"box":{"x":83,"y":492,"width":46,"height":8}},{"id":"49559589-3745-4355-b0f1-af17f833b9d4","block_type":"box","text":"X","page_number":11,"box":{"x":813,"y":492,"width":8,"height":8}},{"id":"15169aab-ce2f-4f8d-af69-91cffc2730d3","block_type":"box","text":"Swap Agreements","page_number":11,"box":{"x":83,"y":512,"width":114,"height":10}},{"id":"26ad9689-18f3-4285-ab89-c174facc6bf1","block_type":"box","text":"X","page_number":11,"box":{"x":813,"y":513,"width":8,"height":7}},{"id":"8e214e76-e569-4ab6-8078-8a2a5eee7977","block_type":"box","text":"Credit Default Swaps and Similar Instruments X","page_number":11,"box":{"x":93,"y":532,"width":728,"height":10}},{"id":"2d2aa7cb-437b-4ee3-9dda-d6c000eca576","block_type":"box","text":"Interest Rate Swaps, Floors and Caps","page_number":11,"box":{"x":93,"y":553,"width":241,"height":9}},{"id":"31f8d1c9-744f-4e8e-979b-1c23ad5996c0","block_type":"box","text":"X","page_number":11,"box":{"x":813,"y":553,"width":8,"height":8}},{"id":"4e01dc0d-bcda-4f92-9564-f1ae079f1514","block_type":"box","text":"Total Return Swaps","page_number":11,"box":{"x":92,"y":573,"width":123,"height":10}},{"id":"0d591f05-7741-4987-9b4f-d91cdcf87d6f","block_type":"box","text":"X","page_number":11,"box":{"x":813,"y":573,"width":8,"height":8}},{"id":"b4dc66bc-4973-44c6-9932-ee2afd772551","block_type":"box","text":"Options","page_number":11,"box":{"x":83,"y":593,"width":48,"height":10}},{"id":"8d539f0a-f14f-423d-aa91-92fafa0c2206","block_type":"box","text":"See Note 1 below","page_number":11,"box":{"x":761,"y":593,"width":113,"height":8}},{"id":"a68a4e15-225e-4696-828e-76fe2322c777","block_type":"box","text":"Options on Securities and Securities Indices X","page_number":11,"box":{"x":93,"y":613,"width":728,"height":10}},{"id":"caa9d0e9-ecbc-4673-b076-992c646e553b","block_type":"box","text":"Call Options","page_number":11,"box":{"x":93,"y":633,"width":76,"height":10}},{"id":"b285d74f-900d-40da-aebb-ee9e2678650c","block_type":"box","text":"See Note 1 below","page_number":11,"box":{"x":761,"y":633,"width":113,"height":8}},{"id":"4080437f-9948-4712-a07e-6a11075a4372","block_type":"box","text":"Put Options","page_number":11,"box":{"x":93,"y":653,"width":73,"height":10}},{"id":"563817a0-bffd-4cde-b89b-4917f6e972fd","block_type":"box","text":"See Note 1 below","page_number":11,"box":{"x":761,"y":653,"width":113,"height":8}},{"id":"f26bdb59-f4ea-4777-851d-f01a04c08f6b","block_type":"box","text":"Options on Government National Mortgage Association (“GNMA”) Certificates","page_number":11,"box":{"x":93,"y":674,"width":496,"height":10}},{"id":"299d26c8-682f-4f58-bb9c-c7ccc9390ce3","block_type":"box","text":"Options on Swaps (“Swaptions”) See Note 1 below","page_number":11,"box":{"x":93,"y":694,"width":781,"height":10}},{"id":"48e659ba-1aba-4e70-90be-837293cb0eed","block_type":"box","text":"FLEX Options","page_number":11,"box":{"x":93,"y":714,"width":82,"height":10}},{"id":"44e90be6-7dea-42d0-a1af-144936b4af3c","block_type":"box","text":"Foreign Exchange Transactions","page_number":11,"box":{"x":83,"y":734,"width":196,"height":10}},{"id":"c1f5e695-546f-47ef-bef8-a6f68d1c3779","block_type":"box","text":"X","page_number":11,"box":{"x":813,"y":734,"width":8,"height":8}},{"id":"b6bfc4a7-d924-469d-9879-1128516e88f6","block_type":"box","text":"Spot Transactions and FX Forwards","page_number":11,"box":{"x":93,"y":754,"width":225,"height":10}},{"id":"fdba6c49-46e5-4f61-95da-fb6eac0272ca","block_type":"box","text":"X","page_number":11,"box":{"x":813,"y":754,"width":8,"height":8}},{"id":"0dbe4c22-a3c1-41d2-b9c0-60acba16da87","block_type":"box","text":"Currency Futures","page_number":11,"box":{"x":93,"y":774,"width":107,"height":10}},{"id":"e1336e80-4f6e-48f1-a31c-d5ef6e137a7c","block_type":"box","text":"X","page_number":11,"box":{"x":813,"y":775,"width":8,"height":7}},{"id":"85ee1860-555a-4353-8be5-3abe2a5e604a","block_type":"box","text":"Currency Options","page_number":11,"box":{"x":93,"y":795,"width":108,"height":10}},{"id":"4fa8c698-d889-479c-8a32-e793d5b5b496","block_type":"box","text":"X","page_number":11,"box":{"x":813,"y":795,"width":8,"height":7}},{"id":"cbb60cab-be1a-4d15-afd4-2eac85b7fcba","block_type":"box","text":"Currency Swaps","page_number":11,"box":{"x":93,"y":815,"width":101,"height":10}},{"id":"fb05bb9a-f8c9-4f1c-8d44-d6d3d3c4835b","block_type":"box","text":"X","page_number":11,"box":{"x":813,"y":815,"width":8,"height":8}},{"id":"b5e1af3e-4f2f-4648-bf59-3fe76ca297af","block_type":"box","text":"Distressed Securities","page_number":11,"box":{"x":73,"y":835,"width":139,"height":8}},{"id":"b3dcbf5e-da97-4ce5-9b4f-63d6ad515f14","block_type":"box","text":"X","page_number":11,"box":{"x":813,"y":835,"width":8,"height":8}},{"id":"5d21c616-3e7d-484c-a84b-e19b7b9dc822","block_type":"box","text":"Environmental, Social and Governance (“ESG”) Integration","page_number":11,"box":{"x":73,"y":855,"width":384,"height":10}},{"id":"29ea8660-8a8c-47b3-a595-cd1ee163dba5","block_type":"box","text":"X","page_number":11,"box":{"x":813,"y":855,"width":8,"height":8}},{"id":"59fb0b58-569b-4630-91c8-d5b5f6d266d5","block_type":"box","text":"Equity Securities","page_number":11,"box":{"x":73,"y":875,"width":110,"height":10}},{"id":"219e5549-3b89-440a-acb1-4ac6ce272709","block_type":"box","text":"X","page_number":11,"box":{"x":813,"y":875,"width":8,"height":8}},{"id":"70e4570b-50ec-4172-9cb3-627e5a041921","block_type":"box","text":"Real Estate-Related Securities","page_number":11,"box":{"x":83,"y":895,"width":193,"height":8}},{"id":"5c2a029a-6246-4b60-aaaa-65ab70a372f5","block_type":"box","text":"X","page_number":11,"box":{"x":813,"y":896,"width":8,"height":7}},{"id":"4852c932-ad17-44f3-8ecd-becc099ab93e","block_type":"box","text":"I-2","page_number":11,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"8088437d-eff1-41ae-a0fb-a09e66557b23","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":11,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9b3f703e-b6bf-4508-8d34-d34ffd38a49a","block_type":"box","text":"Global Dividend Portfolio","page_number":12,"box":{"x":745,"y":50,"width":144,"height":7}},{"id":"6c62ccca-72dd-4a21-96a6-0d524c92fa47","block_type":"box","text":"Securities of Smaller or Emerging Growth Companies X","page_number":12,"box":{"x":83,"y":69,"width":738,"height":10}},{"id":"395fd919-69d0-46f2-98e6-569bc0c5833c","block_type":"box","text":"Tracking Stocks","page_number":12,"box":{"x":82,"y":89,"width":100,"height":10}},{"id":"2cf3279b-6a70-48e5-8395-337345255a00","block_type":"box","text":"Exchange-Traded Notes (“ETNs”)","page_number":12,"box":{"x":73,"y":109,"width":216,"height":10}},{"id":"682cb32a-29d4-4b71-ba19-2c8490bba0d9","block_type":"box","text":"X","page_number":12,"box":{"x":813,"y":109,"width":8,"height":8}},{"id":"c722dbf1-691d-4762-923a-ac739fdfb0ac","block_type":"box","text":"Foreign Investments","page_number":12,"box":{"x":73,"y":129,"width":133,"height":10}},{"id":"8a33bb04-0e1e-4df4-92a0-0a5f88f464d9","block_type":"box","text":"X","page_number":12,"box":{"x":813,"y":130,"width":8,"height":7}},{"id":"bb15e4a1-fd51-492a-9c27-2039a08f6b86","block_type":"box","text":"Foreign Investment Risks","page_number":12,"box":{"x":83,"y":150,"width":160,"height":10}},{"id":"4654b4d2-1d08-4531-a02b-32d4fdfae3f3","block_type":"box","text":"X","page_number":12,"box":{"x":813,"y":150,"width":8,"height":7}},{"id":"b14e3481-cf4d-44c9-aecf-15116dcde477","block_type":"box","text":"Foreign Market Risk","page_number":12,"box":{"x":83,"y":170,"width":127,"height":10}},{"id":"aaaf15f1-8294-41a9-9a1f-97d6eaaefd44","block_type":"box","text":"X","page_number":12,"box":{"x":813,"y":170,"width":8,"height":8}},{"id":"90756ebf-1268-4243-aa8c-b4c480ca4059","block_type":"box","text":"Foreign Economy Risk","page_number":12,"box":{"x":83,"y":190,"width":139,"height":10}},{"id":"a47a9a43-e6e7-4e2c-8226-2f3a1b620048","block_type":"box","text":"X","page_number":12,"box":{"x":813,"y":190,"width":8,"height":8}},{"id":"e2f653c1-ca44-4530-883f-03ad0cda6cd2","block_type":"box","text":"Currency Risk and Exchange Risk","page_number":12,"box":{"x":83,"y":210,"width":212,"height":10}},{"id":"aac2a3f4-e0a2-4c7f-b2fc-a30ec61ed3f5","block_type":"box","text":"X","page_number":12,"box":{"x":813,"y":210,"width":8,"height":8}},{"id":"07728016-3d2f-4b7d-aa8e-2920d7fe6f06","block_type":"box","text":"Governmental Supervision and Regulation/Accounting Standards X","page_number":12,"box":{"x":83,"y":230,"width":738,"height":10}},{"id":"09427bca-7c9b-483b-9fb8-249a05ad2ef7","block_type":"box","text":"Certain Risks of Holding Fund Assets Outside the United States X","page_number":12,"box":{"x":83,"y":250,"width":738,"height":10}},{"id":"5e5b8812-a005-4029-9bae-187b01f85f03","block_type":"box","text":"Publicly Available Information","page_number":12,"box":{"x":83,"y":270,"width":185,"height":10}},{"id":"f2d11d25-bc07-40a8-8435-cbae5f1bca6d","block_type":"box","text":"X","page_number":12,"box":{"x":813,"y":271,"width":8,"height":7}},{"id":"ce5c956d-083c-4181-a8e7-ad97844a40f2","block_type":"box","text":"Settlement Risk","page_number":12,"box":{"x":83,"y":291,"width":101,"height":8}},{"id":"0505db51-a00b-461c-862c-005cc24030c1","block_type":"box","text":"X","page_number":12,"box":{"x":813,"y":291,"width":8,"height":8}},{"id":"da0bd65f-a173-4a3b-9a0c-812228b43dcf","block_type":"box","text":"Sovereign Debt","page_number":12,"box":{"x":83,"y":311,"width":97,"height":10}},{"id":"36b0ebce-cfc5-457a-a7f0-8a44ca16c129","block_type":"box","text":"X","page_number":12,"box":{"x":813,"y":311,"width":8,"height":8}},{"id":"6e71af8f-1578-4f0b-b214-11abaf90648d","block_type":"box","text":"Withholding Tax Reclaims Risk","page_number":12,"box":{"x":82,"y":331,"width":194,"height":10}},{"id":"f5d0e672-273a-44de-ad8f-af5465b5c0bd","block_type":"box","text":"X","page_number":12,"box":{"x":813,"y":331,"width":8,"height":8}},{"id":"d770b444-918e-4acb-ba36-ed2e7ba26633","block_type":"box","text":"U.S. Economic Trading Partners Risk","page_number":12,"box":{"x":83,"y":351,"width":234,"height":10}},{"id":"2f8ebd1f-4dd6-4546-b729-e9e43c71e782","block_type":"box","text":"X","page_number":12,"box":{"x":813,"y":351,"width":8,"height":8}},{"id":"9bedbe83-3af5-4ab0-9ce0-f117377ec9c6","block_type":"box","text":"Funding Agreements","page_number":12,"box":{"x":73,"y":371,"width":134,"height":10}},{"id":"3d64f122-4b40-4558-9ad2-2ec4a1f5be3a","block_type":"box","text":"X","page_number":12,"box":{"x":813,"y":371,"width":8,"height":8}},{"id":"ebc1803a-0583-45c5-b035-4260e75c5ddc","block_type":"box","text":"Guarantees","page_number":12,"box":{"x":73,"y":391,"width":74,"height":8}},{"id":"9f98c514-887c-4a45-a01e-da0d4982bbd3","block_type":"box","text":"X","page_number":12,"box":{"x":813,"y":392,"width":8,"height":7}},{"id":"f43be1ee-c360-4172-b4ce-1d21f7ad9c62","block_type":"box","text":"Illiquid Investments","page_number":12,"box":{"x":73,"y":412,"width":128,"height":9}},{"id":"2ee4ee0c-ebf9-4ab2-830c-001826244649","block_type":"box","text":"X","page_number":12,"box":{"x":813,"y":412,"width":8,"height":8}},{"id":"d90b2449-9f3e-4cb1-9b3a-386cb4e85653","block_type":"box","text":"Index Funds","page_number":12,"box":{"x":73,"y":432,"width":78,"height":8}},{"id":"c69f6a40-6c73-4f2a-81b1-87ad7313276d","block_type":"box","text":"Cash Flows; Expenses","page_number":12,"box":{"x":83,"y":452,"width":142,"height":10}},{"id":"a0dc5b17-928a-4720-b83a-b3d37755789b","block_type":"box","text":"X","page_number":12,"box":{"x":813,"y":452,"width":8,"height":8}},{"id":"5df5dd0f-634a-4629-a18c-8988a030b27e","block_type":"box","text":"Tracking Error Risk","page_number":12,"box":{"x":82,"y":472,"width":120,"height":10}},{"id":"7e12d134-f4ca-4134-bf34-a018ef1dcfdc","block_type":"box","text":"S&P 500 Index","page_number":12,"box":{"x":83,"y":492,"width":96,"height":8}},{"id":"b065ecf3-1633-43af-a95d-4ca884de7d10","block_type":"box","text":"Russell Indexes","page_number":12,"box":{"x":83,"y":513,"width":100,"height":7}},{"id":"8c883f39-c1d6-4fb7-a646-fd7de5a5728f","block_type":"box","text":"MSCI Indexes","page_number":12,"box":{"x":83,"y":533,"width":86,"height":8}},{"id":"733985ce-e06f-4d95-bebd-e0d286c9c81e","block_type":"box","text":"FTSE Indexes","page_number":12,"box":{"x":83,"y":553,"width":84,"height":8}},{"id":"eb87f62f-a4a2-4b6e-890f-b74843c191f7","block_type":"box","text":"Bloomberg Indexes","page_number":12,"box":{"x":83,"y":573,"width":121,"height":10}},{"id":"9a180abd-6973-490c-a884-141aceda8255","block_type":"box","text":"ICE BofA Indexes","page_number":12,"box":{"x":83,"y":593,"width":108,"height":8}},{"id":"9a927822-caa1-4773-aa57-f3987cb7ffc3","block_type":"box","text":"Indexed and Inverse Securities","page_number":12,"box":{"x":73,"y":613,"width":201,"height":8}},{"id":"cbca6d47-a647-4546-8471-9d3e3db25978","block_type":"box","text":"X","page_number":12,"box":{"x":813,"y":613,"width":8,"height":8}},{"id":"2f9febe6-759f-4cad-aea2-6bf7ef97acbe","block_type":"box","text":"Inflation Risk","page_number":12,"box":{"x":73,"y":633,"width":86,"height":8}},{"id":"97223d21-3b03-4252-99f6-70e117a843b7","block_type":"box","text":"X","page_number":12,"box":{"x":813,"y":633,"width":8,"height":8}},{"id":"3d3eedab-2ccb-4557-8363-a92f75a44ee0","block_type":"box","text":"Initial Public Offering (“IPO”) Risk","page_number":12,"box":{"x":73,"y":653,"width":224,"height":10}},{"id":"00b9be7c-a533-4d5d-8090-4e3bf05984ef","block_type":"box","text":"X","page_number":12,"box":{"x":813,"y":654,"width":8,"height":7}},{"id":"83672519-2608-4de0-b519-ef7ac4ed63ed","block_type":"box","text":"Investment in Emerging Markets","page_number":12,"box":{"x":73,"y":674,"width":214,"height":10}},{"id":"5abbeb21-8809-45b4-b475-a4c29ec1a1eb","block_type":"box","text":"X","page_number":12,"box":{"x":813,"y":674,"width":8,"height":8}},{"id":"99615a09-e141-41c6-a914-6d48b51d96c7","block_type":"box","text":"Brady Bonds","page_number":12,"box":{"x":83,"y":694,"width":79,"height":10}},{"id":"8e349df2-4dc4-4d5c-851e-8c3fd3a27281","block_type":"box","text":"X","page_number":12,"box":{"x":813,"y":694,"width":8,"height":8}},{"id":"c1c4076d-9af1-4246-9a90-85687da8b09c","block_type":"box","text":"China Investments Risk","page_number":12,"box":{"x":83,"y":714,"width":150,"height":8}},{"id":"cb62a8bc-6bdc-4d7e-abcc-d4e2373842d1","block_type":"box","text":"X","page_number":12,"box":{"x":813,"y":714,"width":8,"height":8}},{"id":"f5d73b85-58f4-4a87-bcf3-54c6cd87ff69","block_type":"box","text":"Investment in Other Investment Companies","page_number":12,"box":{"x":73,"y":734,"width":284,"height":10}},{"id":"4fc66da3-9e10-4c11-bc57-6240e4907ff2","block_type":"box","text":"X","page_number":12,"box":{"x":813,"y":734,"width":8,"height":8}},{"id":"0d4dff1c-dd2b-4f03-8e46-5e652b08c7c4","block_type":"box","text":"Exchange-Traded Funds","page_number":12,"box":{"x":83,"y":754,"width":148,"height":10}},{"id":"29b458d4-9017-4042-9b1d-aab9e189a69c","block_type":"box","text":"X","page_number":12,"box":{"x":813,"y":754,"width":8,"height":8}},{"id":"20de6eee-e59b-4bc7-b9f3-0f655cb5f68c","block_type":"box","text":"Issuer Insolvency Risk","page_number":12,"box":{"x":73,"y":774,"width":146,"height":10}},{"id":"8c75bf47-6274-4a1b-be78-403b13e06349","block_type":"box","text":"X","page_number":12,"box":{"x":813,"y":775,"width":8,"height":7}},{"id":"61e61b73-8a7b-4070-aa46-3a1d83850bc8","block_type":"box","text":"Lease Obligations","page_number":12,"box":{"x":73,"y":795,"width":116,"height":10}},{"id":"a9f01e74-770f-4c98-9c97-9bde43c0b00a","block_type":"box","text":"X","page_number":12,"box":{"x":813,"y":795,"width":8,"height":8}},{"id":"920301d2-8f68-4109-ac06-457e7925c8fb","block_type":"box","text":"Life Settlement Investments","page_number":12,"box":{"x":73,"y":815,"width":185,"height":8}},{"id":"78e5f6e8-919f-4503-ac0a-db1f805c8716","block_type":"box","text":"Liquidity Risk Management","page_number":12,"box":{"x":73,"y":835,"width":178,"height":10}},{"id":"4e9ef789-9ebe-4097-a81c-c4a62c052cf4","block_type":"box","text":"X","page_number":12,"box":{"x":813,"y":835,"width":8,"height":8}},{"id":"0b9452f4-8453-4b81-9438-e0789e2ff888","block_type":"box","text":"Market Risks/Recent Market Events","page_number":12,"box":{"x":73,"y":855,"width":244,"height":10}},{"id":"86dc3f27-d07b-47b3-88ff-da6d72418994","block_type":"box","text":"X","page_number":12,"box":{"x":813,"y":855,"width":8,"height":8}},{"id":"7cb949ee-1662-4778-afca-efc4ce052abf","block_type":"box","text":"Master Limited Partnerships","page_number":12,"box":{"x":73,"y":875,"width":186,"height":10}},{"id":"d166476b-f37d-4ba8-be59-a5a21a3a0c8a","block_type":"box","text":"X","page_number":12,"box":{"x":813,"y":875,"width":8,"height":8}},{"id":"111b3dc3-75c9-4d05-94a0-5c4104dd5d83","block_type":"box","text":"Merger Transaction Risk","page_number":12,"box":{"x":73,"y":895,"width":161,"height":10}},{"id":"fbc6314e-302a-48b8-9b14-977ad4cb7110","block_type":"box","text":"I-3","page_number":12,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"09a0806b-da06-4a5f-9955-b8f1f7e7fc31","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":12,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7ae3fe95-74d5-4905-b58f-ad4ad055bd7c","block_type":"box","text":"Global Dividend Portfolio","page_number":13,"box":{"x":745,"y":50,"width":144,"height":7}},{"id":"99f9c95a-433f-4955-ad50-6d4ba6274b82","block_type":"box","text":"Money Market Obligations of Domestic Banks, Foreign Banks and Foreign Branches of U.S.","page_number":13,"box":{"x":73,"y":69,"width":600,"height":10}},{"id":"4fb48869-f9e3-47ce-a5e4-1ab8980ab702","block_type":"box","text":"Banks","page_number":13,"box":{"x":88,"y":83,"width":40,"height":8}},{"id":"ff080fa7-70ca-4d72-a333-e796b15599d6","block_type":"box","text":"X","page_number":13,"box":{"x":813,"y":83,"width":8,"height":8}},{"id":"70cb7788-ef48-4761-80ba-12778f698db7","block_type":"box","text":"Money Market Securities","page_number":13,"box":{"x":73,"y":103,"width":165,"height":10}},{"id":"88973256-2312-4d21-ae66-56defa071988","block_type":"box","text":"X","page_number":13,"box":{"x":813,"y":103,"width":8,"height":8}},{"id":"6e8289ea-6b36-405a-90f1-5f006ed5dbd0","block_type":"box","text":"Mortgage-Related Securities","page_number":13,"box":{"x":73,"y":123,"width":188,"height":10}},{"id":"bde7210b-2f51-42fd-91d4-9ac66d07af7e","block_type":"box","text":"X","page_number":13,"box":{"x":813,"y":123,"width":8,"height":8}},{"id":"8a463f7c-3a9a-4782-b092-da23b54e6aca","block_type":"box","text":"Mortgage-Backed Securities","page_number":13,"box":{"x":83,"y":143,"width":178,"height":10}},{"id":"3c1839e2-99f8-4692-b772-1bd7800117b4","block_type":"box","text":"X","page_number":13,"box":{"x":813,"y":143,"width":8,"height":8}},{"id":"84bf424d-988f-4afb-9e99-61c339df9846","block_type":"box","text":"Collateralized Mortgage Obligations (“CMOs”) X","page_number":13,"box":{"x":83,"y":163,"width":738,"height":10}},{"id":"08113d43-260e-4b14-967c-928ae83a3201","block_type":"box","text":"Adjustable Rate Mortgage Securities","page_number":13,"box":{"x":82,"y":184,"width":234,"height":10}},{"id":"501f4f20-7852-4557-8085-0a3d892a1469","block_type":"box","text":"X","page_number":13,"box":{"x":813,"y":184,"width":8,"height":7}},{"id":"cf968472-f7ec-4772-be55-5a61f4e0b792","block_type":"box","text":"CMO Residuals","page_number":13,"box":{"x":83,"y":204,"width":97,"height":8}},{"id":"50b6ffe4-936c-4ad8-8fd9-3ea93245dc03","block_type":"box","text":"X","page_number":13,"box":{"x":813,"y":204,"width":8,"height":8}},{"id":"3dd8222d-adfd-4b33-a43b-09891a6364c8","block_type":"box","text":"Stripped Mortgage-Backed Securities","page_number":13,"box":{"x":83,"y":224,"width":237,"height":10}},{"id":"9673fa09-c1ed-4cb9-8845-c348d5ddfe62","block_type":"box","text":"X","page_number":13,"box":{"x":813,"y":224,"width":8,"height":8}},{"id":"75f22c08-dafb-4a6d-91f9-f02b02194c58","block_type":"box","text":"Tiered Index Bonds","page_number":13,"box":{"x":82,"y":244,"width":122,"height":8}},{"id":"2e8fad56-e722-4ac7-9aa0-ca00d6416e9b","block_type":"box","text":"X","page_number":13,"box":{"x":813,"y":244,"width":8,"height":8}},{"id":"23171f78-4ac5-4942-8278-dfe094ba111a","block_type":"box","text":"TBA Commitments","page_number":13,"box":{"x":82,"y":264,"width":118,"height":8}},{"id":"87fa64b7-eb9b-4d78-bf72-0a2fba5d92f8","block_type":"box","text":"Mortgage Dollar Rolls","page_number":13,"box":{"x":83,"y":284,"width":137,"height":10}},{"id":"d73e60ad-36d3-42f1-9a34-c02a5f81f535","block_type":"box","text":"X","page_number":13,"box":{"x":813,"y":284,"width":8,"height":8}},{"id":"ad07080a-6396-4335-a1ba-2bac381c7d93","block_type":"box","text":"Net Interest Margin (NIM) Securities","page_number":13,"box":{"x":83,"y":305,"width":230,"height":10}},{"id":"3f0696ee-8ade-4d61-9ba7-120983aa5ff0","block_type":"box","text":"Municipal Investments","page_number":13,"box":{"x":73,"y":325,"width":148,"height":10}},{"id":"e720abd9-2688-42c2-b447-d58fa6930a33","block_type":"box","text":"Risk Factors and Special Considerations Relating to Municipal Bonds","page_number":13,"box":{"x":83,"y":345,"width":442,"height":10}},{"id":"4f053d21-382e-4413-a29b-dc8758df11f9","block_type":"box","text":"Description of Municipal Bonds","page_number":13,"box":{"x":83,"y":365,"width":198,"height":10}},{"id":"cf706133-0ed0-4230-8f12-1d3c2bc8c869","block_type":"box","text":"General Obligation Bonds","page_number":13,"box":{"x":93,"y":385,"width":161,"height":10}},{"id":"87f5790d-8d20-42e6-8b74-8ccf8b00beba","block_type":"box","text":"Revenue Bonds","page_number":13,"box":{"x":93,"y":405,"width":98,"height":8}},{"id":"0c03cabd-b381-46d4-9450-f6e719e29b2d","block_type":"box","text":"Private Activity Bonds (“PABs”)","page_number":13,"box":{"x":93,"y":426,"width":194,"height":9}},{"id":"36ce7f89-f8c1-444b-8dd9-9c44b21fb427","block_type":"box","text":"Moral Obligation Bonds","page_number":13,"box":{"x":93,"y":446,"width":148,"height":10}},{"id":"e23cf576-4b5b-42d4-9dbf-e7701116e20c","block_type":"box","text":"Municipal Notes","page_number":13,"box":{"x":93,"y":466,"width":102,"height":10}},{"id":"39cf9337-cc4d-4ad4-ae04-ae7ff4badcf2","block_type":"box","text":"Municipal Commercial Paper","page_number":13,"box":{"x":93,"y":486,"width":182,"height":10}},{"id":"1b7b74de-73a5-456a-ac07-ea2b01a0be1a","block_type":"box","text":"Municipal Lease Obligations","page_number":13,"box":{"x":93,"y":506,"width":179,"height":10}},{"id":"dfedfbd0-23e4-4fa2-a9bf-a3009f90dd68","block_type":"box","text":"Tender Option Bonds","page_number":13,"box":{"x":92,"y":526,"width":133,"height":10}},{"id":"cbeac9bb-b833-4f61-ab59-ef2a571bd0b8","block_type":"box","text":"Yields","page_number":13,"box":{"x":92,"y":547,"width":38,"height":7}},{"id":"752c772b-f8df-45d3-85bb-9c403a851cb2","block_type":"box","text":"Variable Rate Demand Obligations (“VRDOs”)","page_number":13,"box":{"x":92,"y":567,"width":288,"height":10}},{"id":"0a65ee46-fd82-4b3d-8613-a3978c55725d","block_type":"box","text":"Transactions in Financial Futures Contracts on Municipal Indexes","page_number":13,"box":{"x":92,"y":587,"width":416,"height":9}},{"id":"7ccd00b5-8a60-4818-ae58-8f5e7382e32d","block_type":"box","text":"Call Rights","page_number":13,"box":{"x":93,"y":607,"width":67,"height":10}},{"id":"e43759c0-07aa-423d-b950-f8bd50752787","block_type":"box","text":"Municipal Interest Rate Swap Transactions","page_number":13,"box":{"x":93,"y":627,"width":272,"height":10}},{"id":"7e011f8c-d88c-4626-b328-32ba94ba62a2","block_type":"box","text":"Insured Municipal Bonds","page_number":13,"box":{"x":93,"y":647,"width":157,"height":10}},{"id":"44520dfa-50fa-41e1-bf4a-e3cd7d64d082","block_type":"box","text":"Build America Bonds","page_number":13,"box":{"x":93,"y":667,"width":131,"height":8}},{"id":"109f3796-bd4c-4b54-bc76-c77ea195da64","block_type":"box","text":"Tax-Exempt Municipal Investments","page_number":13,"box":{"x":82,"y":688,"width":219,"height":9}},{"id":"09482c1d-bfc9-48f2-a680-b92c4a3ba739","block_type":"box","text":"Operational and Technology Risks","page_number":13,"box":{"x":73,"y":708,"width":221,"height":10}},{"id":"fc621978-940d-4283-ac5a-29a1e19eab41","block_type":"box","text":"X","page_number":13,"box":{"x":813,"y":708,"width":8,"height":8}},{"id":"283424e1-4967-49b9-93bb-3fd0c1daacd1","block_type":"box","text":"Participation Notes","page_number":13,"box":{"x":73,"y":728,"width":127,"height":10}},{"id":"4f1c9408-2271-425b-a974-9e2911b019f9","block_type":"box","text":"X","page_number":13,"box":{"x":813,"y":728,"width":8,"height":8}},{"id":"e13623ca-c9b6-4655-ba14-a23208a2e031","block_type":"box","text":"Portfolio Turnover Rates","page_number":13,"box":{"x":73,"y":748,"width":159,"height":8}},{"id":"3574d14d-5a8c-4613-8269-63590767bde2","block_type":"box","text":"X","page_number":13,"box":{"x":813,"y":748,"width":8,"height":8}},{"id":"84859dec-3590-4d89-a8e1-cf01de67438d","block_type":"box","text":"Preferred Stock","page_number":13,"box":{"x":73,"y":768,"width":103,"height":8}},{"id":"c12c5e0f-6704-49db-a0b2-1bc6bc8b8e3f","block_type":"box","text":"X","page_number":13,"box":{"x":813,"y":768,"width":8,"height":8}},{"id":"c88f7d35-366a-4f6d-86f8-3090ad0c25ca","block_type":"box","text":"Tax-Exempt Preferred Shares","page_number":13,"box":{"x":82,"y":788,"width":184,"height":10}},{"id":"26e03835-e246-4e65-b2b9-b7222df2e184","block_type":"box","text":"X","page_number":13,"box":{"x":813,"y":788,"width":8,"height":8}},{"id":"e9f79710-0651-419a-b2da-844424e9bf51","block_type":"box","text":"Trust Preferred Securities","page_number":13,"box":{"x":82,"y":808,"width":164,"height":8}},{"id":"759cc9a6-014d-4f00-b3fd-35153cea5cfa","block_type":"box","text":"X","page_number":13,"box":{"x":813,"y":809,"width":8,"height":7}},{"id":"d954c744-7fb2-4ce5-b3d5-467aa3ca972c","block_type":"box","text":"Proxy Voting Policies","page_number":13,"box":{"x":73,"y":829,"width":138,"height":10}},{"id":"4e68880f-40f4-4ae3-af3d-9ba54f62ecef","block_type":"box","text":"X","page_number":13,"box":{"x":813,"y":829,"width":8,"height":8}},{"id":"f3bfcf68-7fe3-4811-8678-6be3bdb5d2a0","block_type":"box","text":"Open-End Active and Fixed Income Index Fund Proxy Voting Policy","page_number":13,"box":{"x":83,"y":849,"width":414,"height":10}},{"id":"f897b8dd-00f7-49dd-983f-ccfa34493e87","block_type":"box","text":"X","page_number":13,"box":{"x":813,"y":849,"width":8,"height":8}},{"id":"0ef6bb59-c4e3-4d3d-97d1-e5928b88c46d","block_type":"box","text":"BlackRock Active Investment Stewardship Climate and Decarbonization Stewardship Guidelines","page_number":13,"box":{"x":93,"y":869,"width":610,"height":10}},{"id":"84784807-6fce-45b7-b07d-39041d744f1c","block_type":"box","text":"Index Equity Fund Proxy Voting Policy","page_number":13,"box":{"x":83,"y":889,"width":233,"height":10}},{"id":"5d0714c1-d7ce-43a8-8da2-e4ce2350faba","block_type":"box","text":"I-4","page_number":13,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"743f3653-e29e-4267-90bf-6fa028763a56","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":13,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ac7914e9-843b-42cf-85de-057712389873","block_type":"box","text":"Global Dividend Portfolio","page_number":14,"box":{"x":745,"y":50,"width":144,"height":7}},{"id":"b5280e28-8ee8-4b14-a323-94fd62f8c492","block_type":"box","text":"BlackRock Investment Stewardship Climate and Decarbonization Stewardship Guidelines","page_number":14,"box":{"x":93,"y":69,"width":567,"height":10}},{"id":"02670c4e-d104-43d6-baa0-df34c68bd58c","block_type":"box","text":"Real Estate Investment Trusts (“REITs”)","page_number":14,"box":{"x":73,"y":89,"width":265,"height":10}},{"id":"2ff5ac6b-0791-4f8e-a1f5-1dc7dedb802b","block_type":"box","text":"X","page_number":14,"box":{"x":813,"y":89,"width":8,"height":8}},{"id":"b8447470-d517-41c3-aba3-a565d2b1e97a","block_type":"box","text":"Reference Rate Replacement Risk","page_number":14,"box":{"x":73,"y":109,"width":226,"height":10}},{"id":"853fb519-f2de-4d3c-9b82-ee9c6ef5a3d6","block_type":"box","text":"X","page_number":14,"box":{"x":813,"y":109,"width":8,"height":8}},{"id":"34945a9c-db32-4081-acf6-b62808be3ba3","block_type":"box","text":"Repurchase Agreements and Purchase and Sale Contracts","page_number":14,"box":{"x":73,"y":129,"width":385,"height":10}},{"id":"244cce89-86b0-4ecf-96df-f7ab3ce420d6","block_type":"box","text":"X","page_number":14,"box":{"x":813,"y":130,"width":8,"height":7}},{"id":"05caca16-d919-4e8b-ba58-b33cf906fc2d","block_type":"box","text":"Restricted Securities","page_number":14,"box":{"x":73,"y":150,"width":138,"height":8}},{"id":"865814e1-92c7-481d-8c74-f50ddbcdd7bc","block_type":"box","text":"X","page_number":14,"box":{"x":813,"y":150,"width":8,"height":7}},{"id":"a8ad87d6-a37a-40ac-9de6-562f3f9e33ff","block_type":"box","text":"Reverse Repurchase Agreements","page_number":14,"box":{"x":73,"y":170,"width":218,"height":10}},{"id":"536359a3-ef71-4cd6-be86-c676eabb4168","block_type":"box","text":"X","page_number":14,"box":{"x":813,"y":170,"width":8,"height":8}},{"id":"fab2f41d-7094-4b5e-880e-49e4030e95cc","block_type":"box","text":"Rights Offerings and Warrants to Purchase","page_number":14,"box":{"x":73,"y":190,"width":281,"height":10}},{"id":"01bb7563-40bf-480b-90c7-480f57912615","block_type":"box","text":"X","page_number":14,"box":{"x":813,"y":190,"width":8,"height":8}},{"id":"fe67a74d-b09d-4c3c-a2a3-7702aecbffc2","block_type":"box","text":"Rule 144A Securities","page_number":14,"box":{"x":73,"y":210,"width":139,"height":8}},{"id":"5de24678-d940-40cf-b8f9-d755b3d4aa6d","block_type":"box","text":"X","page_number":14,"box":{"x":813,"y":210,"width":8,"height":8}},{"id":"973cd38b-56fb-4ed0-bfb0-7310663d741e","block_type":"box","text":"Securities Lending","page_number":14,"box":{"x":72,"y":230,"width":122,"height":10}},{"id":"290ef362-d868-4bab-803f-f718d88daaaa","block_type":"box","text":"X","page_number":14,"box":{"x":813,"y":230,"width":8,"height":8}},{"id":"0926c812-dc4c-46cb-a54c-7a803862216c","block_type":"box","text":"Short Sales","page_number":14,"box":{"x":72,"y":250,"width":76,"height":8}},{"id":"ebe8496f-f928-4a6b-bc5f-a25c23996d45","block_type":"box","text":"Special Purpose Acquisition Companies","page_number":14,"box":{"x":72,"y":271,"width":260,"height":9}},{"id":"cda7fc1b-3ea1-4bc8-a390-c2c040a0a911","block_type":"box","text":"X","page_number":14,"box":{"x":813,"y":271,"width":8,"height":7}},{"id":"80c05b16-a0a9-4ed8-9dcc-de241f42489c","block_type":"box","text":"Standby Commitment Agreements","page_number":14,"box":{"x":72,"y":291,"width":226,"height":10}},{"id":"a12aaaed-b2df-44cf-9539-f1e34e05bc38","block_type":"box","text":"X","page_number":14,"box":{"x":813,"y":291,"width":8,"height":8}},{"id":"6b0ba7d4-87d7-4334-a9dc-7dd6ee30b158","block_type":"box","text":"Stripped Securities","page_number":14,"box":{"x":72,"y":311,"width":125,"height":10}},{"id":"e2cdcf01-e6ab-451a-8318-37b1dd206f8a","block_type":"box","text":"X","page_number":14,"box":{"x":813,"y":311,"width":8,"height":8}},{"id":"998eb4ff-68ed-4c7e-b1b7-3d635b6f5cd3","block_type":"box","text":"Structured Notes","page_number":14,"box":{"x":72,"y":331,"width":113,"height":8}},{"id":"a2a1efdf-af05-4901-ae08-98bbd0bb5c20","block_type":"box","text":"Taxability Risk","page_number":14,"box":{"x":73,"y":351,"width":95,"height":10}},{"id":"94cb8e46-9cb2-4152-99f7-06148991564e","block_type":"box","text":"Temporary Defensive Measures","page_number":14,"box":{"x":73,"y":371,"width":204,"height":10}},{"id":"6a064f49-54f9-48d4-bb10-085d1a555e08","block_type":"box","text":"X","page_number":14,"box":{"x":813,"y":371,"width":8,"height":8}},{"id":"890a92b0-48be-4cce-82fc-92a6b19a4149","block_type":"box","text":"U.S. Government Obligations","page_number":14,"box":{"x":73,"y":391,"width":188,"height":10}},{"id":"a0664426-2b0f-4037-b693-9caef842e324","block_type":"box","text":"X","page_number":14,"box":{"x":813,"y":392,"width":8,"height":7}},{"id":"002e32dc-f246-478b-b342-2a449ce51c52","block_type":"box","text":"U.S. Treasury Obligations","page_number":14,"box":{"x":83,"y":412,"width":161,"height":10}},{"id":"fde92646-d206-42cd-81ba-e326c8ace606","block_type":"box","text":"X","page_number":14,"box":{"x":813,"y":412,"width":8,"height":8}},{"id":"24433870-ad6b-4e84-b04a-459b606ce304","block_type":"box","text":"U.S. Treasury Rolls","page_number":14,"box":{"x":73,"y":432,"width":124,"height":10}},{"id":"f6967dfe-091a-418c-ae40-31570a60084f","block_type":"box","text":"X","page_number":14,"box":{"x":813,"y":432,"width":8,"height":8}},{"id":"82f98763-f0f0-4b3d-b6fb-0cc2c3888393","block_type":"box","text":"Utility Industries","page_number":14,"box":{"x":73,"y":452,"width":108,"height":10}},{"id":"ef1e3b56-f05c-486d-9ea9-298dbf879e3a","block_type":"box","text":"X","page_number":14,"box":{"x":813,"y":452,"width":8,"height":8}},{"id":"61efee26-4dfc-4513-b735-68323c3d0768","block_type":"box","text":"When-Issued Securities, Delayed Delivery Securities and Forward Commitments","page_number":14,"box":{"x":72,"y":472,"width":524,"height":10}},{"id":"78a1505a-5b7f-46b3-a5dc-8815363d28eb","block_type":"box","text":"X","page_number":14,"box":{"x":813,"y":472,"width":8,"height":8}},{"id":"07b75bc0-adc5-42e6-a496-d9f13c4274df","block_type":"box","text":"Yields and Ratings","page_number":14,"box":{"x":72,"y":492,"width":123,"height":10}},{"id":"2e2aac83-022f-4076-85ac-d12afd0ef8b1","block_type":"box","text":"X","page_number":14,"box":{"x":813,"y":492,"width":8,"height":8}},{"id":"1a4dc662-4f3e-41ee-abb5-a94d0a393e5b","block_type":"box","text":"Zero Coupon Securities","page_number":14,"box":{"x":73,"y":512,"width":154,"height":10}},{"id":"691be434-97bb-4394-8344-9ed2c7169bc6","block_type":"box","text":"X","page_number":14,"box":{"x":813,"y":513,"width":8,"height":7}},{"id":"f92bc6f9-75b2-44a2-af52-cf2c13d289bc","block_type":"box","text":"1","page_number":14,"box":{"x":69,"y":537,"width":3,"height":3}},{"id":"6c5f13c7-3bcc-42f7-9772-4308a9ad56fe","block_type":"box","text":"The Portfolio may purchase (but not write) interest rate options.","page_number":14,"box":{"x":76,"y":536,"width":361,"height":9}},{"id":"7d340879-02de-43b9-a446-af487adebf05","block_type":"box","text":"Regulation Regarding Derivatives.","page_number":14,"box":{"x":102,"y":558,"width":246,"height":11}},{"id":"02f47b88-7295-44b6-a89d-742b1a89695b","block_type":"box","text":"The Commodity Futures Trading Commission (“CFTC”) subjects advisers to","page_number":14,"box":{"x":355,"y":558,"width":530,"height":11}},{"id":"7bd334d2-15e5-469d-9a6e-e383f95be92e","block_type":"box","text":"registered investment companies to regulation by the CFTC if a fund that is advised by the investment adviser either","page_number":14,"box":{"x":69,"y":572,"width":828,"height":12}},{"id":"962210d2-0c2c-43d6-b6d9-dd103e8934a9","block_type":"box","text":"(i) invests, directly or indirectly, more than a prescribed level of its liquidation value in CFTC-regulated futures, options","page_number":14,"box":{"x":69,"y":588,"width":837,"height":11}},{"id":"4a2221a4-5603-4ce0-85ca-daee0bb4f450","block_type":"box","text":"and swaps (“CFTC Derivatives”), or (ii) markets itself as providing investment exposure to such instruments.","page_number":14,"box":{"x":69,"y":603,"width":770,"height":11}},{"id":"43ccb7f4-d05b-4122-8cf7-4de00e10d1db","block_type":"box","text":"To the extent the Portfolio uses CFTC Derivatives, it intends to do so below such prescribed levels and will not market","page_number":14,"box":{"x":68,"y":618,"width":841,"height":11}},{"id":"19036649-8ad4-4fbc-b586-b9e5c3e05cfa","block_type":"box","text":"itself as a “commodity pool” or a vehicle for trading such instruments. Accordingly, BlackRock has claimed an","page_number":14,"box":{"x":70,"y":633,"width":780,"height":11}},{"id":"2cd395c9-8a97-49ae-a19d-ed990a09d94b","block_type":"box","text":"exclusion from the definition of the term “commodity pool operator” under the Commodity Exchange Act (“CEA”)","page_number":14,"box":{"x":69,"y":648,"width":796,"height":11}},{"id":"c30b2f41-1df4-4682-b7df-7ebbf89cae9d","block_type":"box","text":"pursuant to Rule 4.5 under the CEA. BlackRock is not, therefore, subject to registration or regulation as a","page_number":14,"box":{"x":70,"y":663,"width":751,"height":12}},{"id":"016db378-88c6-48b5-86e8-33dccdef4079","block_type":"box","text":"“commodity pool operator” under the CEA in respect of the Portfolio.","page_number":14,"box":{"x":70,"y":678,"width":487,"height":11}},{"id":"1990f396-b91c-4868-9349-dc44989dd20c","block_type":"box","text":"II. Investment Restrictions","page_number":14,"box":{"x":69,"y":709,"width":194,"height":9}},{"id":"cc4c4951-56da-426a-9784-cb2f88e9bae5","block_type":"box","text":"The Portfolio has adopted restrictions and policies relating to the investment of the Portfolio’s assets and its","page_number":14,"box":{"x":101,"y":731,"width":779,"height":12}},{"id":"5105e433-89cf-4155-b1a9-b87b21d596dc","block_type":"box","text":"activities. Certain of the restrictions are fundamental policies of the Portfolio and may not be changed without the","page_number":14,"box":{"x":69,"y":746,"width":812,"height":12}},{"id":"f0530c63-a51c-4f07-a3e8-d8da6456cffe","block_type":"box","text":"approval of the holders of a majority of the Portfolio’s outstanding voting securities (which for this purpose and under","page_number":14,"box":{"x":69,"y":761,"width":836,"height":12}},{"id":"58410233-e339-4526-a35b-be82c6f0f1d3","block_type":"box","text":"the Investment Company Act, means the lesser of (i) 67% of the shares represented at a meeting at which more than","page_number":14,"box":{"x":68,"y":777,"width":838,"height":11}},{"id":"a222761b-dde9-49e7-b7e5-67cbdf8fa557","block_type":"box","text":"50% of the outstanding shares are represented or (ii) more than 50% of the outstanding shares).","page_number":14,"box":{"x":69,"y":792,"width":690,"height":11}},{"id":"aeb35f32-bd79-43b3-947b-3697752e2084","block_type":"box","text":"Under its fundamental investment restrictions, the Portfolio may not:","page_number":14,"box":{"x":102,"y":814,"width":488,"height":12}},{"id":"26f5f77b-d696-4515-a3f9-1d6abec7104b","block_type":"box","text":"1. Purchase any securities which would cause 25% or more of the value of the Portfolio’s total assets at the","page_number":14,"box":{"x":102,"y":837,"width":772,"height":11}},{"id":"2e903588-9721-4828-828c-2437468d69c2","block_type":"box","text":"time of purchase to be invested in the securities of one or more issuers conducting their principal business activities","page_number":14,"box":{"x":68,"y":852,"width":834,"height":11}},{"id":"52268a50-db0e-4c7f-9211-56d8c52ffcb0","block_type":"box","text":"in the same industry, provided that (a) the Portfolio may cause 25% or more of its total assets at the time of","page_number":14,"box":{"x":70,"y":867,"width":774,"height":11}},{"id":"7e4ff239-0b8e-47b3-baaa-85e5872d4c84","block_type":"box","text":"purchase to be invested in the securities of one or more investment companies; (b) there is no limitation with respect","page_number":14,"box":{"x":70,"y":882,"width":839,"height":11}},{"id":"989a2211-4714-4444-b0b6-f069a6e48591","block_type":"box","text":"to (i) instruments issued or guaranteed by the United States and tax exempt instruments issued by any state,","page_number":14,"box":{"x":68,"y":898,"width":782,"height":11}},{"id":"7f8f17b0-3730-42ab-9870-b4a46ff2f3c7","block_type":"box","text":"territory or possession of the United States, the District of Columbia or any of their authorities, agencies,","page_number":14,"box":{"x":68,"y":913,"width":751,"height":11}},{"id":"b522925b-0c65-4e54-80b4-5dfb78db0e5e","block_type":"box","text":"I-5","page_number":14,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"31620367-a376-4910-a172-dc91ec3d310e","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":14,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0a256ebe-b59c-4c7d-b1ab-bad292826d24","block_type":"box","text":"instrumentalities or political subdivisions, and (ii) repurchase agreements secured by the instruments described in","page_number":15,"box":{"x":70,"y":45,"width":816,"height":11}},{"id":"bb9ed8a1-4041-4664-8b4e-df1350fb0a49","block_type":"box","text":"clause (i); (c) wholly-owned finance companies will be considered to be in the industries of their parents if their","page_number":15,"box":{"x":69,"y":60,"width":789,"height":11}},{"id":"d09425ef-d916-4201-a7fa-964b21752443","block_type":"box","text":"activities are primarily related to financing the activities of the parents; and (d) utilities will be divided according to","page_number":15,"box":{"x":69,"y":75,"width":812,"height":11}},{"id":"f832e176-16ac-4886-9e78-7e138dd79003","block_type":"box","text":"their services; for example, gas, gas transmission, electric and gas, electric and telephone will each be considered a","page_number":15,"box":{"x":68,"y":90,"width":835,"height":11}},{"id":"fc7db6fc-8a0c-4521-8473-9da07915682a","block_type":"box","text":"separate industry. For purposes of the concentration policy, the Portfolio will look through to the portfolio holdings of","page_number":15,"box":{"x":69,"y":105,"width":832,"height":11}},{"id":"6966957e-064c-42a6-9315-2f15264acecb","block_type":"box","text":"the underlying funds in which they invest and will aggregate the holdings of the underlying funds (on a pro rata basis","page_number":15,"box":{"x":68,"y":120,"width":828,"height":12}},{"id":"9b445b8c-6db4-4e49-92c7-df5f1aae79b4","block_type":"box","text":"based on the Portfolio’s investment in each underlying fund) to determine concentration in a particular industry in","page_number":15,"box":{"x":69,"y":135,"width":811,"height":12}},{"id":"ec44e3e3-d4ef-4f2b-bd11-ab92246d833c","block_type":"box","text":"accordance with the concentration policy provided above. For the purposes of this policy, only those underlying funds","page_number":15,"box":{"x":69,"y":150,"width":830,"height":12}},{"id":"9fa3eca0-5568-4645-99b9-57477dc31bc9","block_type":"box","text":"that are part of the BlackRock family of funds will be aggregated; the Portfolio will not aggregate underlying fund","page_number":15,"box":{"x":68,"y":166,"width":799,"height":11}},{"id":"45a3f882-9998-415d-b63b-8dc835611c81","block_type":"box","text":"holdings, if any, in underlying funds outside of the BlackRock family of funds.","page_number":15,"box":{"x":69,"y":181,"width":546,"height":11}},{"id":"e00d4ee0-ec33-478c-8fdc-dcb3a48a1a2b","block_type":"box","text":"2. Issue senior securities, borrow money or pledge its assets, except that the Portfolio may borrow from banks","page_number":15,"box":{"x":102,"y":203,"width":791,"height":12}},{"id":"746fcabd-ac15-4d6e-a343-e79fe66c8b73","block_type":"box","text":"or enter into reverse repurchase agreements or dollar rolls in amounts aggregating not more than 33","page_number":15,"box":{"x":69,"y":219,"width":719,"height":11}},{"id":"521ac0cc-aff1-4ad2-9a8a-e26f4c8168c2","block_type":"box","text":"1⁄","page_number":15,"box":{"x":790,"y":219,"width":5,"height":5}},{"id":"18cc7329-22bd-455d-9bc3-db066ef4977c","block_type":"box","text":"1⁄3","page_number":15,"box":{"x":793,"y":219,"width":8,"height":8}},{"id":"695c62cc-202d-4332-95f1-7a472e7788b0","block_type":"box","text":"⁄3","page_number":15,"box":{"x":799,"y":222,"width":6,"height":5}},{"id":"d02db940-4bef-46fa-9762-25ddcd371f65","block_type":"box","text":"% of the value","page_number":15,"box":{"x":805,"y":218,"width":99,"height":9}},{"id":"5e82cf78-6c09-438d-ab7d-62f4c5e32003","block_type":"box","text":"of its total assets (calculated when the loan is made) to take advantage of investment opportunities and may pledge","page_number":15,"box":{"x":69,"y":234,"width":831,"height":11}},{"id":"b617ccc5-61d4-4f4a-9bd2-63af4fb616e5","block_type":"box","text":"up to 33","page_number":15,"box":{"x":69,"y":249,"width":60,"height":11}},{"id":"9eb5d88c-b334-4b1d-bf6b-092b1dc43311","block_type":"box","text":"1⁄","page_number":15,"box":{"x":130,"y":249,"width":6,"height":5}},{"id":"824f426d-da1c-43f5-a69b-ba2112e510d1","block_type":"box","text":"1⁄3","page_number":15,"box":{"x":134,"y":249,"width":7,"height":9}},{"id":"adf9a760-6098-46ae-a230-3c9996c2cdca","block_type":"box","text":"⁄3","page_number":15,"box":{"x":139,"y":252,"width":6,"height":6}},{"id":"cbd361be-4e5a-43c7-8cc9-8aea3302b9e2","block_type":"box","text":"% of the value of its total assets to secure such borrowings. The Portfolio is also authorized to borrow an","page_number":15,"box":{"x":146,"y":249,"width":749,"height":11}},{"id":"e7101507-853c-449c-8bb7-84e6a1c9accc","block_type":"box","text":"additional 5% of its total assets without regard to the foregoing limitations for temporary purposes such as clearance","page_number":15,"box":{"x":69,"y":264,"width":836,"height":11}},{"id":"c2955b69-3f81-4ef4-a2bf-1f781bd6a531","block_type":"box","text":"of portfolio transactions and share redemptions. For purposes of these restrictions, the purchase or sale of","page_number":15,"box":{"x":69,"y":279,"width":769,"height":11}},{"id":"c1fb6969-03b5-4533-b9a1-6398885a5e61","block_type":"box","text":"securities on a “when-issued,” delayed delivery or forward commitment basis, the purchase and sale of options and","page_number":15,"box":{"x":69,"y":294,"width":828,"height":11}},{"id":"91be9ce5-9654-429e-9de4-b788d5b7ebdb","block_type":"box","text":"futures contracts and collateral arrangements with respect thereto are not deemed to be the issuance of a senior","page_number":15,"box":{"x":68,"y":309,"width":812,"height":11}},{"id":"1ccbe1d0-41f3-4ae9-b030-0f2c633f989a","block_type":"box","text":"security, a borrowing or a pledge of assets.","page_number":15,"box":{"x":69,"y":324,"width":306,"height":12}},{"id":"f30066f5-d2c1-4b8a-96f5-806bee2450cf","block_type":"box","text":"3. Purchase or sell real estate, except that the Portfolio may purchase securities of issuers which deal in real","page_number":15,"box":{"x":102,"y":347,"width":781,"height":11}},{"id":"04a83c91-af85-47f9-8689-115fbe45eec5","block_type":"box","text":"estate and may purchase securities which are secured by interests in real estate.","page_number":15,"box":{"x":69,"y":362,"width":581,"height":11}},{"id":"f1c39116-5d59-44ea-9fe7-a918f7450968","block_type":"box","text":"4. Acquire any other investment company or investment company security except in connection with a merger,","page_number":15,"box":{"x":101,"y":385,"width":782,"height":11}},{"id":"fd73c5b2-a834-4d5c-b1c6-e77aa8a3c915","block_type":"box","text":"consolidation, reorganization or acquisition of assets or where otherwise permitted by the Investment Company Act.","page_number":15,"box":{"x":69,"y":400,"width":826,"height":11}},{"id":"9eda0bb2-a054-41b3-968e-4d6b3f872901","block_type":"box","text":"5. Act as an underwriter of securities within the meaning of the Securities Act of 1933 except to the extent that","page_number":15,"box":{"x":102,"y":423,"width":795,"height":11}},{"id":"31b4aed5-f55d-4a2b-94d7-f5ad5d162fe9","block_type":"box","text":"the purchase of obligations directly from the issuer thereof, or the disposition of securities, in accordance with the","page_number":15,"box":{"x":68,"y":438,"width":817,"height":11}},{"id":"b186c955-0765-4c44-9140-1843f834cef6","block_type":"box","text":"Portfolio’s investment objective, policies and limitations may be deemed to be underwriting.","page_number":15,"box":{"x":69,"y":453,"width":655,"height":11}},{"id":"10a9a0c8-cf1e-498b-ac97-38993b4e2b50","block_type":"box","text":"6. Write or sell put options, call options, straddles, spreads, or any combination thereof, except for transactions","page_number":15,"box":{"x":102,"y":475,"width":798,"height":12}},{"id":"d24de447-6d63-4767-942f-dfc1080eddb9","block_type":"box","text":"in options on securities and securities indices, futures contracts and options on futures contracts and currencies, to","page_number":15,"box":{"x":70,"y":491,"width":830,"height":11}},{"id":"0aeec585-e2a4-49fd-aedf-4ddb2d02eb69","block_type":"box","text":"the extent permitted by applicable law.","page_number":15,"box":{"x":68,"y":506,"width":274,"height":11}},{"id":"d17a01bd-ec14-4362-9e15-4d8ce3e2393d","block_type":"box","text":"7. Purchase securities of companies for the purpose of exercising control.","page_number":15,"box":{"x":102,"y":528,"width":526,"height":12}},{"id":"7f80fdc1-6c0e-46e7-b7a6-f6bd04d048ed","block_type":"box","text":"8. Purchase securities on margin, make short sales of securities or maintain a short position, except that","page_number":15,"box":{"x":101,"y":551,"width":757,"height":11}},{"id":"ef41d673-f65c-4e3c-a0d8-09efd7d9dcbb","block_type":"box","text":"(a) this investment limitation shall not apply to the Portfolio’s transactions in futures contracts and related options or","page_number":15,"box":{"x":69,"y":566,"width":837,"height":11}},{"id":"f30da67d-0e3e-4638-a8f6-4818fb9d2c21","block_type":"box","text":"the Portfolio’s sale of securities short against the box, and (b) the Portfolio may obtain short-term credit as may be","page_number":15,"box":{"x":68,"y":581,"width":825,"height":12}},{"id":"b4a205f5-4bae-4a6c-82dd-cd5915c5ced5","block_type":"box","text":"necessary for the clearance of purchases and sales of portfolio securities.","page_number":15,"box":{"x":69,"y":596,"width":532,"height":12}},{"id":"c75eccb2-3e48-4823-9221-78490f279567","block_type":"box","text":"9. Purchase or sell commodity contracts, or invest in oil, gas or mineral exploration or development programs,","page_number":15,"box":{"x":102,"y":619,"width":782,"height":11}},{"id":"cc134f3d-73ae-493d-a5aa-e6de5b3f6dde","block_type":"box","text":"except that the Portfolio may, to the extent appropriate to its investment policies, purchase securities of companies","page_number":15,"box":{"x":69,"y":634,"width":826,"height":11}},{"id":"8e356515-a148-46f8-8fbf-48ef4555fdc0","block_type":"box","text":"engaging in whole or in part in such activities and may enter into futures contracts and related options.","page_number":15,"box":{"x":69,"y":649,"width":734,"height":12}},{"id":"cd022a2b-c694-4192-85b1-cf2ebc22ee3c","block_type":"box","text":"10. Make loans, except that the Portfolio may purchase and hold debt instruments and enter into repurchase","page_number":15,"box":{"x":102,"y":672,"width":780,"height":11}},{"id":"fa54ad1b-086f-494d-92d0-9311f2339435","block_type":"box","text":"agreements in accordance with its investment objective and policies and may lend portfolio securities. See","page_number":15,"box":{"x":69,"y":687,"width":763,"height":11}},{"id":"f8566c95-18d4-4477-99c2-849374520148","block_type":"box","text":"“Securities Lending” in Part II of this SAI.","page_number":15,"box":{"x":70,"y":702,"width":292,"height":12}},{"id":"9e443d31-b4c7-44c3-a971-3a1010db5277","block_type":"box","text":"11. Purchase or sell commodities except that the Portfolio may, to the extent appropriate to its investment","page_number":15,"box":{"x":102,"y":725,"width":761,"height":11}},{"id":"10d721b5-1400-4007-ad64-263ca79e5413","block_type":"box","text":"policies, purchase securities of companies engaging in whole or in part in such activities, may engage in currency","page_number":15,"box":{"x":70,"y":740,"width":809,"height":11}},{"id":"177fc678-fcee-4970-b1d8-8bbc776c1066","block_type":"box","text":"transactions and may enter into futures contracts and related options, to the extent permitted by applicable law.","page_number":15,"box":{"x":68,"y":755,"width":800,"height":11}},{"id":"a34e0aee-4a45-45de-9c17-fb2e4bc0f107","block_type":"box","text":"While certain swaps are now considered commodity interests for purposes of the Commodity Exchange Act and","page_number":15,"box":{"x":101,"y":778,"width":793,"height":11}},{"id":"4ba6c8b7-08f3-4874-8144-b5b98819afbc","block_type":"box","text":"the rules thereunder, at the time of the Portfolio’s adoption of fundamental investment restrictions no. 6, 9 and 11","page_number":15,"box":{"x":68,"y":793,"width":822,"height":11}},{"id":"9d5db5b7-4191-4e6c-9dee-95333aecad7f","block_type":"box","text":"above, many swaps were treated as securities for purposes of the Portfolio’s compliance with applicable law.","page_number":15,"box":{"x":69,"y":808,"width":778,"height":11}},{"id":"21c7cbb1-6a0c-44cc-9dbc-5b4aabdc5c23","block_type":"box","text":"Accordingly, fundamental investment restriction no. 6, which does not restrict transactions in options on securities","page_number":15,"box":{"x":68,"y":823,"width":817,"height":12}},{"id":"903a8458-4384-43a6-a0a6-b13b59f25c9b","block_type":"box","text":"and securities indices, and fundamental investment restrictions no. 9 and 11 are being interpreted to permit the","page_number":15,"box":{"x":69,"y":838,"width":803,"height":12}},{"id":"2039fce4-51a3-4a0e-96d8-35e084f4b94b","block_type":"box","text":"Portfolio to engage in transactions in swaps and options on swaps, as applicable, related to financial instruments,","page_number":15,"box":{"x":69,"y":853,"width":817,"height":12}},{"id":"0ede4a11-e0a2-4701-9715-01ce53484c1e","block_type":"box","text":"such as securities, securities indices and currencies, but not to engage in transactions in swaps or options on swaps","page_number":15,"box":{"x":69,"y":869,"width":838,"height":11}},{"id":"fc7505bb-1e72-4b0d-9add-1eca5657ca12","block_type":"box","text":"related to physical commodities, such as oil or metals.","page_number":15,"box":{"x":69,"y":884,"width":390,"height":11}},{"id":"b5ab250c-ef27-46ed-8dc8-b5eabbc8cafd","block_type":"box","text":"Notations Regarding the Por tfolio’s Fundamental Investment Restrictions","page_number":15,"box":{"x":102,"y":908,"width":520,"height":11}},{"id":"56cbf790-4ea9-4815-b81e-1a2e4fb90c7b","block_type":"box","text":"I-6","page_number":15,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"e3cb787c-0771-4351-857b-0562332c0912","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":15,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2123f2c2-d543-4228-a3c9-80cc1c2ca106","block_type":"box","text":"The following notation is not considered to be part of the Portfolio’s fundamental investment restrictions and is","page_number":16,"box":{"x":101,"y":45,"width":795,"height":11}},{"id":"5c9ad104-693e-4a9e-b032-2d3e720cab17","block_type":"box","text":"subject to change without shareholder approval. With respect to the fundamental policy relating to concentration set","page_number":16,"box":{"x":69,"y":60,"width":828,"height":11}},{"id":"0a5cce44-c47f-48b2-9d7e-99f9d5c00df8","block_type":"box","text":"forth in no. 1 above, with respect to the Portfolio’s industry classifications, the Portfolio currently utilizes any one or","page_number":16,"box":{"x":68,"y":75,"width":831,"height":11}},{"id":"fc718b15-0735-4fcf-95c9-4662ba717aaf","block_type":"box","text":"more of the industry sub-classifications used by one or more widely recognized market indexes or rating group","page_number":16,"box":{"x":69,"y":90,"width":784,"height":11}},{"id":"e037ca02-8584-4542-9ef0-b2c5b71e8937","block_type":"box","text":"indexes, and/or as defined by Portfolio management. The policy also will be interpreted to give broad authority to the","page_number":16,"box":{"x":70,"y":105,"width":833,"height":11}},{"id":"bc73ac1b-1d58-4d86-85fa-d383c2e503ab","block_type":"box","text":"Portfolio as to how to classify issuers within or among industries.","page_number":16,"box":{"x":69,"y":120,"width":465,"height":12}},{"id":"dea1b5cd-82f6-427e-8a0f-9e5fc3dfad88","block_type":"box","text":"Under its non-fundamental investment restrictions, which may be changed by the Board without shareholder","page_number":16,"box":{"x":102,"y":143,"width":768,"height":11}},{"id":"b181712d-7702-4046-bad7-0804baa712a7","block_type":"box","text":"approval, the Portfolio may not:","page_number":16,"box":{"x":69,"y":158,"width":223,"height":11}},{"id":"6ff3cf1d-861c-4171-b26a-96376d2b0fb7","block_type":"box","text":"(a) Purchase securities of other investment companies, except to the extent permitted by the Investment","page_number":16,"box":{"x":102,"y":181,"width":751,"height":11}},{"id":"6449c146-ef32-4cde-aca4-453611da55b0","block_type":"box","text":"Company Act. As a matter of policy, however, the Portfolio will not purchase shares of any registered open-end","page_number":16,"box":{"x":69,"y":196,"width":785,"height":11}},{"id":"e42eafdb-cfe6-46c3-b9ea-7a5f5e4d5c3f","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":16,"box":{"x":70,"y":211,"width":829,"height":11}},{"id":"c5b88054-4048-4e89-89ae-7485eea491e8","block_type":"box","text":"provisions) of the Investment Company Act, at any time the Portfolio has knowledge that its shares are purchased by","page_number":16,"box":{"x":70,"y":226,"width":834,"height":11}},{"id":"c0739d5d-983d-4fe3-9d55-eb94cf37a79c","block_type":"box","text":"another investment company investor in reliance on the provisions of subparagraph (G) of Section 12(d)(1).","page_number":16,"box":{"x":69,"y":241,"width":763,"height":11}},{"id":"b656167b-4176-4140-8288-0ea0d46ba0f7","block_type":"box","text":"Unless otherwise indicated or with respect to policies adopted pursuant to Rule 35d-1 under the Investment","page_number":16,"box":{"x":102,"y":264,"width":771,"height":11}},{"id":"6f702aa2-8371-45c4-9bf0-7590371eff4f","block_type":"box","text":"Company Act, all limitations under the Portfolio’s fundamental or non-fundamental investment restrictions apply only","page_number":16,"box":{"x":69,"y":279,"width":830,"height":11}},{"id":"876458c3-0c42-4b2e-a7fe-d355425675dd","block_type":"box","text":"at the time that a transaction is undertaken. Any change in the percentage of the Portfolio’s assets invested in","page_number":16,"box":{"x":69,"y":294,"width":792,"height":11}},{"id":"747f2d6d-2878-47a6-891a-cec674816569","block_type":"box","text":"certain securities or other instruments resulting from market fluctuations or other changes in the Portfolio’s total","page_number":16,"box":{"x":69,"y":309,"width":806,"height":11}},{"id":"904255ab-484a-4bd4-9e79-aa1f9b37a64f","block_type":"box","text":"assets will not require the Portfolio to dispose of an investment until the adviser or sub-adviser determines that it is","page_number":16,"box":{"x":69,"y":324,"width":828,"height":11}},{"id":"fc9a2035-43a6-4453-940b-17510acad6a4","block_type":"box","text":"practicable to sell or close out the investment without undue market or tax consequences.","page_number":16,"box":{"x":70,"y":340,"width":642,"height":10}},{"id":"f9e41026-1519-4f4a-9166-624c96443873","block_type":"box","text":"The Portfolio is currently classified as a diversified fund under the Investment Company Act. This means that the","page_number":16,"box":{"x":101,"y":362,"width":803,"height":11}},{"id":"5d7bbbec-182b-4daa-8da4-05566da60268","block_type":"box","text":"Portfolio may not purchase securities of an issuer (other than (i) obligations issued or guaranteed by the U.S.","page_number":16,"box":{"x":69,"y":377,"width":778,"height":12}},{"id":"c58ddfb5-b186-4ea4-a03f-ee6a197d8312","block_type":"box","text":"government, its agencies or instrumentalities and (ii) securities of other investment companies) if, with respect to","page_number":16,"box":{"x":68,"y":392,"width":812,"height":12}},{"id":"04ef8d37-21e8-4d29-982a-271f7d019a70","block_type":"box","text":"75% of its total assets, (a) more than 5% of the Portfolio’s total assets would be invested in securities of that issuer","page_number":16,"box":{"x":69,"y":407,"width":834,"height":11}},{"id":"7472b913-80d2-44ed-8ab5-9e62c093749d","block_type":"box","text":"or (b) the Portfolio would hold more than 10% of the outstanding voting securities of that issuer. With respect to the","page_number":16,"box":{"x":69,"y":423,"width":825,"height":11}},{"id":"86b8e1e0-992a-40e2-b80b-1d749c1f4fb3","block_type":"box","text":"remaining 25% of its total assets, the Portfolio can invest more than 5% of its assets in one issuer. Under the","page_number":16,"box":{"x":69,"y":438,"width":785,"height":11}},{"id":"d10ee27d-732d-4e53-b101-20fef05bcdf6","block_type":"box","text":"Investment Company Act, the Portfolio cannot change its classification from diversified to non-diversified without","page_number":16,"box":{"x":70,"y":453,"width":800,"height":11}},{"id":"2fdff302-c85f-4860-ad9d-73bb468d9fb4","block_type":"box","text":"shareholder approval.","page_number":16,"box":{"x":69,"y":468,"width":153,"height":11}},{"id":"b1b61da0-e251-4061-9d68-b45f53df4a1e","block_type":"box","text":"With respect to the fundamental policy relating to issuing senior securities above, the Investment Company Act,","page_number":16,"box":{"x":101,"y":491,"width":795,"height":11}},{"id":"a4ad34c6-7e4b-41f0-aa4e-c9a79e109199","block_type":"box","text":"including the rules and regulations thereunder, generally prohibits the Portfolio from issuing senior securities (other","page_number":16,"box":{"x":70,"y":506,"width":822,"height":11}},{"id":"bdb8dfb4-dd7f-449e-b90c-61b55bf9a99a","block_type":"box","text":"than certain temporary borrowings) unless immediately after the issuance the Portfolio has satisfied an asset","page_number":16,"box":{"x":68,"y":521,"width":786,"height":11}},{"id":"add93021-30ec-4c28-a87b-8a136d4ee89f","block_type":"box","text":"coverage requirement with respect to senior securities representing indebtedness prescribed by the Investment","page_number":16,"box":{"x":69,"y":536,"width":795,"height":11}},{"id":"eada301a-17f1-49eb-a778-dbc37fbdc852","block_type":"box","text":"Company Act. Certain trading practices and investments, such as derivatives transactions, may be treated as senior","page_number":16,"box":{"x":69,"y":551,"width":829,"height":11}},{"id":"444ea261-91bd-43c0-8cbe-07f606f1345c","block_type":"box","text":"securities. Prior to the adoption and implementation of Rule 18f-4 under the Investment Company Act, when the","page_number":16,"box":{"x":69,"y":566,"width":797,"height":11}},{"id":"afdaf29f-832a-4eb4-996f-dceab239e596","block_type":"box","text":"Portfolio engaged in a derivatives transaction that creates future payment obligations, consistent with SEC staff","page_number":16,"box":{"x":69,"y":581,"width":799,"height":12}},{"id":"41ec0f51-ac2e-4de1-ad63-5cac35c6e16d","block_type":"box","text":"guidance and interpretations, the Portfolio was permitted to segregate or earmark liquid assets, or enter into an","page_number":16,"box":{"x":68,"y":596,"width":801,"height":12}},{"id":"16382a83-404d-4530-92df-f590b75ed0c2","block_type":"box","text":"offsetting position, in an amount at least equal to the Portfolio’s exposure, on a mark-to-market basis, to the","page_number":16,"box":{"x":69,"y":612,"width":777,"height":11}},{"id":"21beed2d-020a-49de-a39a-2eb64ee2a731","block_type":"box","text":"transaction, instead of meeting the asset coverage requirement with respect to senior securities prescribed by the","page_number":16,"box":{"x":68,"y":627,"width":817,"height":11}},{"id":"73d307be-919f-4ac2-8cfc-12b2b62ab355","block_type":"box","text":"Investment Company Act. The SEC staff guidance and interpretations were rescinded in connection with the adoption","page_number":16,"box":{"x":70,"y":642,"width":832,"height":11}},{"id":"84e30880-8a85-4d4e-8e35-fc6c189bad12","block_type":"box","text":"of Rule 18f-4, and the Portfolio now complies with Rule 18f-4 with respect to its derivatives transactions. Thus, the","page_number":16,"box":{"x":69,"y":657,"width":820,"height":11}},{"id":"f0f0dfe1-0ab3-4230-a533-eb5d748ecc38","block_type":"box","text":"fundamental policy relating to issuing senior securities above will not restrict the Portfolio from entering into","page_number":16,"box":{"x":68,"y":672,"width":771,"height":11}},{"id":"0d65832f-8410-4686-acb8-54a9fd070906","block_type":"box","text":"derivatives transactions that are treated as senior securities so long as the Portfolio complies with Rule 18f-4 with","page_number":16,"box":{"x":69,"y":687,"width":817,"height":11}},{"id":"27211a76-ff79-431a-8f10-cbe01ac5441c","block_type":"box","text":"respect to such derivatives transactions.","page_number":16,"box":{"x":69,"y":703,"width":288,"height":10}},{"id":"8491c01c-c1f0-46cb-9aab-4b4e513f1af5","block_type":"box","text":"III. Information on Trustees and Officers","page_number":16,"box":{"x":69,"y":733,"width":290,"height":9}},{"id":"8f924460-4541-4ddf-b596-52bd892318af","block_type":"box","text":"The Board consists of fifteen individuals (each, a “Trustee”), thirteen of whom are not “interested persons” of","page_number":16,"box":{"x":101,"y":755,"width":788,"height":11}},{"id":"327ef0be-dbd7-492d-bcea-42e1ef7d87d3","block_type":"box","text":"the Trust as defined in the Investment Company Act (the “Independent Trustees”). The registered investment","page_number":16,"box":{"x":68,"y":770,"width":779,"height":12}},{"id":"7de098e4-ac69-45c6-9049-d2e80ab1cd61","block_type":"box","text":"companies advised by the Manager or its affiliates (the “BlackRock-advised Funds”) are organized into the BlackRock","page_number":16,"box":{"x":69,"y":785,"width":837,"height":12}},{"id":"4b72e495-b03a-4699-97f0-63b1aabde957","block_type":"box","text":"Multi-Asset Complex, the BlackRock Fixed-Income Complex, and the iShares Complex (each, a “BlackRock Fund","page_number":16,"box":{"x":70,"y":801,"width":793,"height":11}},{"id":"0a31ede1-87c8-4b11-ba99-f45e2be4cfd2","block_type":"box","text":"Complex”). The Portfolio is included in the BlackRock Fund Complex referred to as the BlackRock Multi-Asset","page_number":16,"box":{"x":69,"y":816,"width":777,"height":11}},{"id":"1ecd77a1-5c0f-4c7e-946f-52028a8139f9","block_type":"box","text":"Complex. The Trustees also oversee as board members the operations of the other open-end registered investment","page_number":16,"box":{"x":69,"y":831,"width":824,"height":11}},{"id":"ded1f222-86b2-4b3c-9a34-3610ca7d23a4","block_type":"box","text":"companies included in the BlackRock Multi-Asset Complex.","page_number":16,"box":{"x":69,"y":846,"width":418,"height":11}},{"id":"48ac5d3e-f97d-4937-9a75-9965f67a14f6","block_type":"box","text":"The Board has overall responsibility for the oversight of the Trust and the Portfolio. The Chair of the Board is an","page_number":16,"box":{"x":101,"y":869,"width":795,"height":11}},{"id":"284d43bd-fa1f-42f7-88d0-6716ec08f7d2","block_type":"box","text":"Independent Trustee, and the Chair of each Board committee (each, a “Committee”) is an Independent Trustee. The","page_number":16,"box":{"x":70,"y":884,"width":827,"height":11}},{"id":"a6d7a845-120e-4fa6-8c0e-d1ec51135c31","block_type":"box","text":"Board has five standing Committees: an Audit Committee, a Governance and Nominating Committee, a Compliance","page_number":16,"box":{"x":70,"y":899,"width":821,"height":11}},{"id":"6689031a-1bb3-42c4-a59a-f6ca46e43a99","block_type":"box","text":"I-7","page_number":16,"box":{"x":481,"y":943,"width":16,"height":9}},{"id":"a31a4619-98be-48fc-b8f1-341563d46661","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":16,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0f0b0924-046c-4a8a-ab05-9d7bd870ad11","block_type":"box","text":"Committee, a Performance Oversight Committee and an Ad Hoc Topics Committee. The role of the Chair of the Board","page_number":17,"box":{"x":69,"y":45,"width":835,"height":11}},{"id":"6eb941a3-fbe5-43b8-a56c-f7cd59abdeb7","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":17,"box":{"x":70,"y":60,"width":830,"height":11}},{"id":"6e9f6e8d-c515-4a97-93a4-1ddb0dc40439","block_type":"box","text":"Trustees generally between meetings. The Chair of each Committee performs a similar role with respect to the","page_number":17,"box":{"x":68,"y":75,"width":789,"height":11}},{"id":"9c168665-99da-4a9b-bf3f-6f9c17940238","block_type":"box","text":"Committee. The Chair of the Board or the Chair of a Committee may also perform such other functions as may be","page_number":17,"box":{"x":69,"y":90,"width":810,"height":11}},{"id":"a546fbf4-7399-4194-aa31-b45ffdb31871","block_type":"box","text":"delegated by the Board or the Committee from time to time. The Independent Trustees meet regularly outside the","page_number":17,"box":{"x":69,"y":105,"width":809,"height":11}},{"id":"1b3ab448-e858-45a9-8820-67221cde85d7","block_type":"box","text":"presence of Portfolio management, in executive session or with other service providers to the Portfolio. The Board","page_number":17,"box":{"x":70,"y":120,"width":814,"height":12}},{"id":"854369d0-36a7-4417-bab4-4e4bcee722fb","block_type":"box","text":"has regular meetings five times a year, and may hold special meetings if required before its next regular meeting.","page_number":17,"box":{"x":69,"y":135,"width":807,"height":12}},{"id":"f10fb39e-ee9e-46ba-be61-6c7fa3346146","block_type":"box","text":"Each Committee meets regularly to conduct the oversight functions delegated to that Committee by the Board and","page_number":17,"box":{"x":70,"y":150,"width":812,"height":12}},{"id":"0893a44b-d85d-4a88-a130-ffb4c4dc01b6","block_type":"box","text":"reports its findings to the Board. The Board and each standing Committee conduct annual assessments of their","page_number":17,"box":{"x":69,"y":166,"width":800,"height":11}},{"id":"d010a32b-39da-4f8e-8d55-5c9a4c6d920f","block_type":"box","text":"oversight function and structure. The Board has determined that the Board’s leadership structure is appropriate","page_number":17,"box":{"x":69,"y":181,"width":798,"height":11}},{"id":"49248684-89c5-4038-ae9a-2be8a9b9760c","block_type":"box","text":"because it allows the Board to exercise independent judgment over management and to allocate areas of","page_number":17,"box":{"x":69,"y":196,"width":753,"height":11}},{"id":"9944eb30-fe23-47b5-a81d-06d87d9e413d","block_type":"box","text":"responsibility among Committees and the full Board to enhance effective oversight.","page_number":17,"box":{"x":69,"y":211,"width":593,"height":11}},{"id":"97cb61b8-371e-4db1-8ace-bbb98a8a96f5","block_type":"box","text":"The Board has engaged the Manager to manage the Portfolio on a day-to-day basis. The Board is responsible for","page_number":17,"box":{"x":101,"y":234,"width":803,"height":11}},{"id":"e27f3b73-b6c2-4fc3-a880-02515f6127ea","block_type":"box","text":"overseeing the Manager, other service providers, the operations of the Portfolio and associated risks in accordance","page_number":17,"box":{"x":69,"y":249,"width":825,"height":11}},{"id":"93cbd33f-ffb3-4b3c-b46f-bb85a1f58ecb","block_type":"box","text":"with the provisions of the Investment Company Act, state law, other applicable laws, the Trust’s charter, and the","page_number":17,"box":{"x":68,"y":264,"width":802,"height":11}},{"id":"f0d36533-7edf-4090-8e6a-78c5755d0390","block_type":"box","text":"Portfolio’s investment objective and strategies. The Board reviews, on an ongoing basis, the Portfolio’s performance,","page_number":17,"box":{"x":69,"y":279,"width":836,"height":11}},{"id":"b6ca9d4b-4f15-4521-8cd7-ff3617025f52","block_type":"box","text":"operations and investment strategies and techniques. The Board also conducts reviews of the Manager and its role","page_number":17,"box":{"x":69,"y":294,"width":823,"height":11}},{"id":"6bde1507-18de-4a58-b6aa-992e6d8cb3c7","block_type":"box","text":"in running the operations of the Portfolio.","page_number":17,"box":{"x":70,"y":309,"width":292,"height":11}},{"id":"b953f1a9-50b2-434b-ab4a-d700e4553cac","block_type":"box","text":"Day-to-day risk management with respect to the Portfolio is the responsibility of the Manager or of sub-advisers","page_number":17,"box":{"x":102,"y":332,"width":791,"height":11}},{"id":"a5dfe40d-6948-4895-98c4-248331126b09","block_type":"box","text":"or other service providers (depending on the nature of the risk), subject to the supervision of the Manager. The","page_number":17,"box":{"x":69,"y":347,"width":791,"height":11}},{"id":"88dd1b10-266e-44e1-be9b-ab159377f1c2","block_type":"box","text":"Portfolio is subject to a number of risks, including investment, compliance, operational and valuation risks, among","page_number":17,"box":{"x":69,"y":362,"width":816,"height":11}},{"id":"84392cee-f4f0-4aa2-81fb-f94882efc2bc","block_type":"box","text":"others. While there are a number of risk management functions performed by the Manager and the sub-advisers or","page_number":17,"box":{"x":69,"y":377,"width":820,"height":12}},{"id":"3595574b-14f1-4269-8e92-a854e07db1fd","block_type":"box","text":"other service providers, as applicable, it is not possible to eliminate all of the risks applicable to the Portfolio. Risk","page_number":17,"box":{"x":69,"y":392,"width":822,"height":11}},{"id":"7271c1a0-f5e1-47f0-bd12-7612a347cd5c","block_type":"box","text":"oversight forms part of the Board’s general oversight of the Portfolio and is addressed as part of various Board and","page_number":17,"box":{"x":69,"y":407,"width":826,"height":12}},{"id":"ae794e77-735b-450b-b3c7-6fc88fd950dc","block_type":"box","text":"Committee activities. The Board, directly or through a Committee, also reviews reports from, among others,","page_number":17,"box":{"x":69,"y":423,"width":766,"height":11}},{"id":"6fd0644c-a2d8-4623-993d-ab41e0d50158","block_type":"box","text":"management, the independent registered public accounting firm for the Portfolio, sub-advisers and internal auditors","page_number":17,"box":{"x":69,"y":438,"width":824,"height":11}},{"id":"e8abb715-0f6b-4cf1-8abf-eeb986ed939e","block_type":"box","text":"for the investment adviser or its affiliates, as appropriate, regarding risks faced by the Portfolio and management’s","page_number":17,"box":{"x":68,"y":453,"width":823,"height":11}},{"id":"2136a2a9-1fd8-4d95-b416-98f59faaa7f9","block_type":"box","text":"or the service provider’s risk functions. The Committee system facilitates the timely and efficient consideration of","page_number":17,"box":{"x":69,"y":468,"width":812,"height":11}},{"id":"0db141e7-d8a1-4040-a4c7-b4bf953fcb25","block_type":"box","text":"matters by the Trustees, and facilitates effective oversight of compliance with legal and regulatory requirements and","page_number":17,"box":{"x":69,"y":483,"width":830,"height":11}},{"id":"9d160487-198a-49a3-888f-6fa14c0e4e4f","block_type":"box","text":"of the Portfolio’s activities and associated risks. The Board has appointed a Chief Compliance Officer, who oversees","page_number":17,"box":{"x":69,"y":498,"width":831,"height":11}},{"id":"88632ecb-5995-4882-b4e3-ca862b059174","block_type":"box","text":"the implementation and testing of the Trust’s compliance program and reports to the Board regarding compliance","page_number":17,"box":{"x":68,"y":513,"width":811,"height":12}},{"id":"583e2f82-82cd-44ec-90fd-3f0f934166c9","block_type":"box","text":"matters for the Portfolio and its service providers. The Independent Trustees have engaged independent legal","page_number":17,"box":{"x":69,"y":528,"width":782,"height":12}},{"id":"467b255d-9131-4e1f-b8bd-029235406ce1","block_type":"box","text":"counsel to assist them in performing their oversight responsibilities.","page_number":17,"box":{"x":69,"y":543,"width":487,"height":12}},{"id":"d602aca7-580c-4db4-a566-b1dc4573f15e","block_type":"box","text":"Audit Committee.","page_number":17,"box":{"x":101,"y":566,"width":122,"height":9}},{"id":"d33e4b74-608e-48b1-929d-6ea899235381","block_type":"box","text":"The members of the Audit Committee (the “Audit Committee”) are Henry R. Keizer (Chair), Neil","page_number":17,"box":{"x":229,"y":566,"width":673,"height":11}},{"id":"30c5884f-0c1d-4e23-9b50-e42258bdbe9e","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":17,"box":{"x":68,"y":581,"width":831,"height":11}},{"id":"3b4b2064-cb72-4b40-abac-ffba619a8794","block_type":"box","text":"The principal responsibilities of the Audit Committee are to approve, and recommend to the full Board for approval,","page_number":17,"box":{"x":68,"y":596,"width":820,"height":11}},{"id":"136d5ff3-edd0-4b22-aebe-b1f5ceae04d7","block_type":"box","text":"the selection, retention, termination and compensation of the Portfolio’s independent registered public accounting","page_number":17,"box":{"x":68,"y":612,"width":817,"height":11}},{"id":"09ff7f58-97b0-47d2-9404-84796f3ed007","block_type":"box","text":"firm (the “Independent Registered Public Accounting Firm”) and to oversee the Independent Registered Public","page_number":17,"box":{"x":68,"y":627,"width":781,"height":11}},{"id":"3b1ef702-9d69-45f1-87cb-c35d73022f7a","block_type":"box","text":"Accounting Firm’s work. The Audit Committee’s responsibilities include, without limitation, to (1) evaluate the","page_number":17,"box":{"x":68,"y":642,"width":778,"height":11}},{"id":"fee80d42-ac5b-4d39-939d-a574efde418e","block_type":"box","text":"qualifications and independence of the Independent Registered Public Accounting Firm; (2) approve all audit","page_number":17,"box":{"x":69,"y":657,"width":769,"height":11}},{"id":"bb7107ab-820d-4045-b28c-25ad4de8b8a0","block_type":"box","text":"engagement terms and fees for the Portfolio; (3) review the conduct and results of each independent audit of the","page_number":17,"box":{"x":69,"y":672,"width":807,"height":11}},{"id":"b66d67e5-2db4-4837-a864-fb452fdee644","block_type":"box","text":"Portfolio’s annual financial statements; (4) review any issues raised by the Independent Registered Public Accounting","page_number":17,"box":{"x":69,"y":687,"width":838,"height":11}},{"id":"1d7d3c92-bb60-4317-80e7-c5def5797764","block_type":"box","text":"Firm or Portfolio management regarding the accounting or financial reporting policies and practices of the Portfolio","page_number":17,"box":{"x":70,"y":702,"width":816,"height":12}},{"id":"e3a2bc3c-40bc-4c73-9556-1ecb5f8ae6d2","block_type":"box","text":"and the internal controls of the Portfolio and certain service providers; (5) oversee the performance of the Portfolio’s","page_number":17,"box":{"x":69,"y":717,"width":837,"height":11}},{"id":"8e2eb2a3-59f4-4cd0-bf07-d814efa5ef0f","block_type":"box","text":"Independent Registered Public Accounting Firm; (6) review and discuss with management and the Portfolio’s","page_number":17,"box":{"x":70,"y":732,"width":772,"height":12}},{"id":"0eeed618-033c-49ea-a9ef-439f3429b744","block_type":"box","text":"Independent Registered Public Accounting Firm the performance and findings of the Portfolio’s internal auditors;","page_number":17,"box":{"x":70,"y":748,"width":799,"height":11}},{"id":"7afb5553-4ff7-491d-84c5-ddccd1ae7f5f","block_type":"box","text":"(7) discuss with Portfolio management its policies regarding risk assessment and risk management as such matters","page_number":17,"box":{"x":69,"y":763,"width":831,"height":11}},{"id":"a781ad92-c912-46c7-b976-29607735e208","block_type":"box","text":"relate to the Portfolio’s financial reporting and controls; (8) resolve any disagreements between Portfolio","page_number":17,"box":{"x":69,"y":778,"width":748,"height":11}},{"id":"577331cf-43d3-44a8-90d9-d5ad8f5580fb","block_type":"box","text":"management and the Independent Registered Public Accounting Firm regarding financial reporting; and (9) undertake","page_number":17,"box":{"x":69,"y":793,"width":834,"height":11}},{"id":"28f89ce0-e817-4d55-863f-bd0424aa0c9b","block_type":"box","text":"such other duties and responsibilities as may from time to time be delegated by the Board to the Audit Committee.","page_number":17,"box":{"x":69,"y":808,"width":819,"height":11}},{"id":"0728ae5a-62e3-4950-9788-827dc355c3f1","block_type":"box","text":"The Board has adopted a written charter for the Audit Committee. During the fiscal year ended May 31, 2026, the","page_number":17,"box":{"x":68,"y":823,"width":813,"height":12}},{"id":"80f5b197-b61a-4851-af73-1478bfe3be03","block_type":"box","text":"Audit Committee met four times.","page_number":17,"box":{"x":68,"y":838,"width":232,"height":9}},{"id":"127bc29d-d901-48c7-9010-b468a8e871f4","block_type":"box","text":"Governance and Nominating Committee.","page_number":17,"box":{"x":102,"y":861,"width":286,"height":11}},{"id":"41e51330-3273-4649-90b6-7c6ac60cc9bc","block_type":"box","text":"The members of the Governance and Nominating Committee (the","page_number":17,"box":{"x":394,"y":861,"width":464,"height":11}},{"id":"bc53b843-254a-40aa-b984-5a32fcef6c8a","block_type":"box","text":"“Governance Committee”) are Cynthia A. Montgomery (Chair), Christopher J. Ailman, Susan J. Carter, Collette Chilton,","page_number":17,"box":{"x":70,"y":876,"width":838,"height":11}},{"id":"6f6418d6-87a2-4643-bdc5-e848b396ef43","block_type":"box","text":"Henry R. Keizer and Marc D. Stern, all of whom are Independent Trustees. The principal responsibilities of the","page_number":17,"box":{"x":70,"y":891,"width":784,"height":11}},{"id":"b7c9333e-33e8-4e47-9fd5-2259d528aa52","block_type":"box","text":"Governance Committee are to (1) identify individuals qualified to serve as Independent Trustees of the Trust and","page_number":17,"box":{"x":69,"y":906,"width":803,"height":12}},{"id":"b03cf9f5-7ffd-4b32-91c4-94e577167e5c","block_type":"box","text":"I-8","page_number":17,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"cdaff3ab-ce4e-4960-9e36-1ec168399b6e","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":17,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"51ab2bc2-44c4-48b6-bf74-ca967955cc4e","block_type":"box","text":"recommend Independent Trustee nominees for election by shareholders or appointment by the Board; (2) advise the","page_number":18,"box":{"x":69,"y":45,"width":829,"height":11}},{"id":"80c7899f-9179-4279-a22e-d6d76f8678bd","block_type":"box","text":"Board with respect to Board composition, procedures and committees (other than the Audit Committee); (3) oversee","page_number":18,"box":{"x":70,"y":60,"width":828,"height":11}},{"id":"12f2b49f-7464-4e3e-9746-f716622f2368","block_type":"box","text":"periodic self-assessments of the Board and committees of the Board (other than the Audit Committee); (4) review","page_number":18,"box":{"x":70,"y":75,"width":809,"height":11}},{"id":"36d8aac1-971d-4f85-83cf-b4ed1fa15986","block_type":"box","text":"and make recommendations regarding Independent Trustee compensation; (5) monitor corporate governance matters","page_number":18,"box":{"x":69,"y":90,"width":838,"height":11}},{"id":"18dd60b7-5b90-4c45-aa67-f6c76c55db4b","block_type":"box","text":"and develop appropriate recommendations to the Board; (6) act as the administrative committee with respect to","page_number":18,"box":{"x":69,"y":105,"width":800,"height":11}},{"id":"d2f36f26-58cf-46ae-84a0-15b7a0aa96f8","block_type":"box","text":"Board policies and procedures, committee policies and procedures (other than the Audit Committee) and codes of","page_number":18,"box":{"x":70,"y":120,"width":813,"height":11}},{"id":"d6b23b2e-9b43-4c2b-9613-43cc00a5ad26","block_type":"box","text":"ethics as they relate to Independent Trustees; and (7) undertake such other duties and responsibilities as may from","page_number":18,"box":{"x":69,"y":135,"width":829,"height":11}},{"id":"11d718b7-2ce1-477a-8ab6-874a8455457e","block_type":"box","text":"time to time be delegated by the Board to the Governance Committee. The Governance Committee may consider","page_number":18,"box":{"x":68,"y":151,"width":804,"height":11}},{"id":"11af4ed2-d13c-42de-ac9c-87976e94598a","block_type":"box","text":"nominations for Trustees made by the Portfolio’s shareholders as it deems appropriate. Under the Trust’s Amended","page_number":18,"box":{"x":69,"y":166,"width":827,"height":11}},{"id":"acca58c7-96c5-44bd-9474-027f1163fda4","block_type":"box","text":"and Restated Code of Regulations (“Bylaws”), shareholders must follow certain procedures to nominate a person for","page_number":18,"box":{"x":69,"y":181,"width":833,"height":11}},{"id":"46c74272-ac12-47c8-9058-28fdc6e99da6","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":18,"box":{"x":69,"y":196,"width":799,"height":11}},{"id":"3013b7d1-cc6c-4e3c-a24b-cef41804567b","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":18,"box":{"x":70,"y":211,"width":776,"height":11}},{"id":"ade895a7-424c-4014-9a7f-046c252426ba","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":18,"box":{"x":69,"y":226,"width":821,"height":11}},{"id":"ba33e0c0-50bb-483d-ad5c-bed9d93d6c44","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":18,"box":{"x":68,"y":241,"width":812,"height":11}},{"id":"16d025c1-1660-4d4c-bbbf-86a2d7f6d0a6","block_type":"box","text":"made, whichever first occurs. The Trust’s Bylaws provide that notice of a proposed nomination must include certain","page_number":18,"box":{"x":69,"y":256,"width":823,"height":11}},{"id":"811468f2-cf95-44e8-94c5-230c30ac1c61","block_type":"box","text":"information about the shareholder and the nominee, as well as certain other information, including a written consent","page_number":18,"box":{"x":70,"y":271,"width":832,"height":12}},{"id":"51b337ca-9816-46e1-830c-d03d709cf6bf","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":18,"box":{"x":69,"y":286,"width":811,"height":12}},{"id":"8386cceb-e200-4f6f-9c3c-56e49b68de5a","block_type":"box","text":"has adopted a written charter for the Governance Committee. During the fiscal year ended May 31, 2026, the","page_number":18,"box":{"x":69,"y":302,"width":783,"height":11}},{"id":"0bee5297-d54e-49f7-b9c7-1fd9bfeed94c","block_type":"box","text":"Governance Committee met ten times.","page_number":18,"box":{"x":69,"y":317,"width":274,"height":9}},{"id":"f4b5de6a-1f54-4e50-9e72-f8e4e394439d","block_type":"box","text":"Compliance Committee.","page_number":18,"box":{"x":102,"y":340,"width":168,"height":10}},{"id":"1e03a864-0f37-47ff-85c8-c64162b3946c","block_type":"box","text":"The members of the Compliance Committee (the “Compliance Committee”) are Claire A.","page_number":18,"box":{"x":276,"y":339,"width":629,"height":11}},{"id":"32d24a1f-bd81-4ff0-ac43-f5081e1c3793","block_type":"box","text":"Walton (Chair), Jeffrey Jarczyk, Cynthia A. Montgomery, Donald C. Opatrny, Lori Richards and Kenneth L. Urish, all of","page_number":18,"box":{"x":68,"y":355,"width":828,"height":11}},{"id":"d47be037-0ec9-4bd8-b531-871290d504b2","block_type":"box","text":"whom are Independent Trustees. The Compliance Committee’s purpose is to assist the Board in fulfilling its","page_number":18,"box":{"x":68,"y":370,"width":771,"height":11}},{"id":"63aa745f-5d61-41c0-8de4-c7147d177039","block_type":"box","text":"responsibility to oversee regulatory and fiduciary compliance matters involving the Trust, the fund-related activities of","page_number":18,"box":{"x":69,"y":385,"width":835,"height":11}},{"id":"fde78f52-0219-4d8a-8a0b-505d8f9a7511","block_type":"box","text":"BlackRock and any sub-adviser and the Trust’s third-party service providers. The Compliance Committee’s","page_number":18,"box":{"x":70,"y":400,"width":754,"height":11}},{"id":"e8e7d9e5-1463-477b-89ef-699b16686f0a","block_type":"box","text":"responsibilities include, without limitation, to (1) oversee the compliance policies and procedures of the Trust and its","page_number":18,"box":{"x":69,"y":415,"width":834,"height":11}},{"id":"d4c3351a-54f4-4b66-8c60-371b2a1573e7","block_type":"box","text":"service providers and recommend changes or additions to such policies and procedures; (2) review information on","page_number":18,"box":{"x":69,"y":430,"width":815,"height":11}},{"id":"a71543ef-706e-47a7-93c7-62f98f233759","block_type":"box","text":"and, where appropriate, recommend policies concerning the Trust’s compliance with applicable law; (3) review","page_number":18,"box":{"x":69,"y":445,"width":785,"height":12}},{"id":"c0e2f7e5-c9ed-4cfd-8a7a-9ed51f6e6845","block_type":"box","text":"reports from, oversee the annual performance review of, and make certain recommendations and determinations","page_number":18,"box":{"x":69,"y":460,"width":811,"height":11}},{"id":"95c13192-e1ff-4cc4-9a89-90cdb7e3fd4a","block_type":"box","text":"regarding the Trust’s Chief Compliance Officer (the “CCO”), including determining the amount and structure of the","page_number":18,"box":{"x":69,"y":475,"width":812,"height":12}},{"id":"d5fe31e7-00f4-491c-9399-84e3a7d04544","block_type":"box","text":"CCO’s compensation and recommending such amount and structure to the full Board for approval and ratification;","page_number":18,"box":{"x":69,"y":491,"width":812,"height":11}},{"id":"74689dd1-ce63-42c7-8d0a-b967db6707c0","block_type":"box","text":"and (4) undertake such other duties and responsibilities as may from time to time be delegated by the Board to the","page_number":18,"box":{"x":69,"y":506,"width":825,"height":11}},{"id":"d3332cd5-8f29-4744-90aa-c0ef345738fb","block_type":"box","text":"Compliance Committee. The Board has adopted a written charter for the Compliance Committee. During the fiscal","page_number":18,"box":{"x":69,"y":521,"width":811,"height":11}},{"id":"e4b217d3-aee8-4824-9708-f68c5eb7f653","block_type":"box","text":"year ended May 31, 2026, the Compliance Committee met four times.","page_number":18,"box":{"x":68,"y":536,"width":502,"height":11}},{"id":"b74ede1c-b082-4e26-8325-90c891944e9d","block_type":"box","text":"Per formance Oversight Committee.","page_number":18,"box":{"x":102,"y":559,"width":248,"height":11}},{"id":"5b56b274-c008-4467-b7f4-56b789530b15","block_type":"box","text":"The members of the Performance Oversight Committee (the “Performance","page_number":18,"box":{"x":356,"y":559,"width":531,"height":11}},{"id":"f9bd2045-69c6-4274-92db-cc548cdad529","block_type":"box","text":"Oversight Committee”) are Donald C. Opatrny (Chair), Christopher J. Ailman, Susan J. Carter, Collette Chilton, Neil A.","page_number":18,"box":{"x":69,"y":574,"width":829,"height":11}},{"id":"b96eae26-367e-431a-bbe8-015c0217182c","block_type":"box","text":"Cotty and Marc D. Stern, all of whom are Independent Trustees. The Performance Oversight Committee’s purpose is","page_number":18,"box":{"x":69,"y":589,"width":830,"height":11}},{"id":"6b5eb745-8ee2-40dc-bbf6-2c1a2cda6292","block_type":"box","text":"to assist the Board in fulfilling its responsibility to oversee the Portfolio’s investment performance relative to its","page_number":18,"box":{"x":68,"y":604,"width":800,"height":11}},{"id":"abe7955d-c3ec-4e5b-a162-5de25f155194","block_type":"box","text":"agreed-upon performance objectives and to assist the Independent Trustees in their consideration of investment","page_number":18,"box":{"x":69,"y":619,"width":803,"height":11}},{"id":"8a50bb7f-450e-40bc-b00a-91d7fc458d82","block_type":"box","text":"advisory agreements. The Performance Oversight Committee’s responsibilities include, without limitation, to","page_number":18,"box":{"x":69,"y":634,"width":772,"height":12}},{"id":"4c2e8904-74f4-4f37-a769-5be7bca0eb90","block_type":"box","text":"(1) review information on, and make recommendations to the full Board in respect of, the Portfolio’s investment","page_number":18,"box":{"x":69,"y":649,"width":799,"height":11}},{"id":"57336869-66f0-43e3-bd81-127b0f1ff14d","block_type":"box","text":"objective, policies and practices; (2) review information on the Portfolio’s investment performance; (3) review","page_number":18,"box":{"x":69,"y":664,"width":780,"height":12}},{"id":"d0470847-26e9-4ebf-b4a6-6085bd191bea","block_type":"box","text":"information on appropriate benchmarks and competitive universes and unusual or exceptional investment matters;","page_number":18,"box":{"x":70,"y":680,"width":816,"height":11}},{"id":"e42c3f98-9dff-4106-b138-ee935c5673e2","block_type":"box","text":"(4) review personnel and other resources devoted to management of the Portfolio and evaluate the nature and quality","page_number":18,"box":{"x":69,"y":695,"width":840,"height":11}},{"id":"0fba7b19-1b09-4360-9cca-3221026ec6e5","block_type":"box","text":"of information furnished to the Performance Oversight Committee; (5) recommend any required action regarding","page_number":18,"box":{"x":69,"y":710,"width":799,"height":11}},{"id":"7b5a6beb-8f9d-4dc1-a75c-9fb28dac5c25","block_type":"box","text":"changes in fundamental and non-fundamental investment policies and restrictions, fund mergers or liquidations;","page_number":18,"box":{"x":69,"y":725,"width":799,"height":11}},{"id":"5e02abe4-b1cb-4ae1-96cd-052d5bdc78b9","block_type":"box","text":"(6) request and review information on the nature, extent and quality of services provided to the shareholders;","page_number":18,"box":{"x":69,"y":740,"width":780,"height":11}},{"id":"a7b16ae9-5282-40d9-beed-674d75b473f7","block_type":"box","text":"(7) make recommendations to the Board concerning the approval or renewal of investment advisory agreements; and","page_number":18,"box":{"x":69,"y":755,"width":835,"height":11}},{"id":"a01e41f4-dba5-43cf-967e-11bbcf44eb69","block_type":"box","text":"(8) undertake such other duties and responsibilities as may from time to time be delegated by the Board to the","page_number":18,"box":{"x":69,"y":770,"width":794,"height":12}},{"id":"7605b7d6-7a28-420d-9be4-0291a1019064","block_type":"box","text":"Performance Oversight Committee. The Board has adopted a written charter for the Performance Oversight","page_number":18,"box":{"x":69,"y":785,"width":763,"height":12}},{"id":"09532cd7-fada-4224-93df-b997b358ff5b","block_type":"box","text":"Committee. During the fiscal year ended May 31, 2026, the Performance Oversight Committee met five times.","page_number":18,"box":{"x":69,"y":801,"width":787,"height":11}},{"id":"6f62dbd3-2acd-4473-a867-fa082651a443","block_type":"box","text":"Ad Hoc Topics Committee.","page_number":18,"box":{"x":101,"y":823,"width":186,"height":11}},{"id":"8522837b-b9a2-48fc-9109-e8bbbb6718b9","block_type":"box","text":"The members of the Ad Hoc Topics Committee (the “Ad Hoc Topics Committee”) are","page_number":18,"box":{"x":293,"y":823,"width":598,"height":11}},{"id":"5baa065c-b2ca-46b0-892c-a076fdfb9888","block_type":"box","text":"Mark Stalnecker (Chair) and Claire A. Walton, both of whom are Independent Trustees, and John M. Perlowski, who","page_number":18,"box":{"x":70,"y":838,"width":817,"height":11}},{"id":"492e0d5f-18dd-4d5c-b2b8-4104430eb6a0","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":18,"box":{"x":69,"y":853,"width":795,"height":11}},{"id":"54b0d54a-efd8-4226-886d-828b454e967c","block_type":"box","text":"routine matters between meetings of the Board; (2) act on such matters as may require urgent action between","page_number":18,"box":{"x":69,"y":869,"width":788,"height":11}},{"id":"12543135-e926-444c-b57f-a89867becc7d","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":18,"box":{"x":69,"y":884,"width":813,"height":11}},{"id":"122281d2-063f-4c52-ba7a-14a0a2bbaee8","block_type":"box","text":"I-9","page_number":18,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"24b9c5f9-aa38-4199-9fc4-5d7c76899a7b","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":18,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"90527575-7188-44b4-b0e0-8681a06977b5","block_type":"box","text":"Topics Committee by the Board. The Board has adopted a written charter for the Ad Hoc Topics Committee. During","page_number":19,"box":{"x":68,"y":45,"width":816,"height":11}},{"id":"33a32a20-1842-43a7-a432-e994e461ef4a","block_type":"box","text":"the fiscal year ended May 31, 2026, the Ad Hoc Topics Committee did not meet.","page_number":19,"box":{"x":68,"y":60,"width":575,"height":11}},{"id":"dce6eaef-3abd-4702-be62-22a9712af7d5","block_type":"box","text":"The Governance Committee has adopted a statement of policy that describes the experience, qualifications,","page_number":19,"box":{"x":101,"y":82,"width":771,"height":12}},{"id":"1988562b-55ff-435b-afc8-6593a1790eb4","block_type":"box","text":"skills and attributes that are necessary and desirable for potential Independent Trustee candidates (the “Statement","page_number":19,"box":{"x":69,"y":98,"width":827,"height":11}},{"id":"c2f2a9af-bc39-4311-a2fe-a920b260a1f9","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":19,"box":{"x":69,"y":113,"width":830,"height":11}},{"id":"9075ee80-fde9-4279-bf27-3b3b0a2e99c3","block_type":"box","text":"appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. Furthermore,","page_number":19,"box":{"x":69,"y":128,"width":825,"height":11}},{"id":"49e5fc3c-1498-4cef-9130-58a80aae8305","block_type":"box","text":"in determining that a particular Independent Trustee was and continues to be qualified to serve as a Trustee, the","page_number":19,"box":{"x":70,"y":143,"width":807,"height":11}},{"id":"234fa22d-7e0b-4f2a-af95-8237fd32550e","block_type":"box","text":"Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that,","page_number":19,"box":{"x":70,"y":158,"width":787,"height":11}},{"id":"937fae11-4129-461f-a0fb-bf429050c2df","block_type":"box","text":"collectively, the Independent Trustees have balanced and diverse experience, skills, attributes and qualifications,","page_number":19,"box":{"x":69,"y":173,"width":805,"height":11}},{"id":"45c45866-1103-45ca-8248-e95a2734f0cf","block_type":"box","text":"which allow the Board to operate effectively in governing the Trust and protecting the interests of shareholders.","page_number":19,"box":{"x":68,"y":188,"width":794,"height":12}},{"id":"f30e7f36-bfb6-4978-89bc-c1f71e3902a7","block_type":"box","text":"Among the attributes common to all Independent Trustees are their ability to review critically, evaluate, question and","page_number":19,"box":{"x":68,"y":204,"width":829,"height":11}},{"id":"c81b1656-8876-4496-8557-c144206fc79a","block_type":"box","text":"discuss information provided to them, to interact effectively with the Portfolio’s investment adviser, sub-advisers,","page_number":19,"box":{"x":69,"y":218,"width":806,"height":12}},{"id":"db3d3880-2e1f-45c2-9867-21fa2016435e","block_type":"box","text":"other service providers, counsel and the Independent Registered Public Accounting Firm, and to exercise effective","page_number":19,"box":{"x":69,"y":234,"width":813,"height":11}},{"id":"444b0c55-ab99-430b-8d4c-f5288cfeca2c","block_type":"box","text":"business judgment in the performance of their duties as Trustees.","page_number":19,"box":{"x":69,"y":249,"width":473,"height":11}},{"id":"88d1e16a-2a4d-485d-8063-4587870b4811","block_type":"box","text":"Each Trustee’s ability to perform his or her duties effectively is evidenced by his or her educational background","page_number":19,"box":{"x":102,"y":271,"width":792,"height":12}},{"id":"5dc2f258-6259-4063-8f46-c76793f4a37b","block_type":"box","text":"or professional training; business, consulting, public service or academic positions; experience from service as a","page_number":19,"box":{"x":69,"y":286,"width":807,"height":12}},{"id":"87b30e16-ef01-47c1-bf86-cbb3ef49cf31","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":19,"box":{"x":69,"y":302,"width":837,"height":11}},{"id":"2a88e05a-046d-4756-9fd7-f863c3361feb","block_type":"box","text":"investment funds, public companies, non-profit entities or other organizations; ongoing commitment to and","page_number":19,"box":{"x":70,"y":317,"width":759,"height":11}},{"id":"5a8ce5c3-b327-437f-b2d7-e5d8d0de77de","block_type":"box","text":"participation in Board and Committee meetings, as well as his or her leadership of standing and","page_number":19,"box":{"x":70,"y":332,"width":685,"height":11}},{"id":"211694e1-76aa-4837-81bd-b0c2de81e25f","block_type":"box","text":"ad hoc","page_number":19,"box":{"x":762,"y":332,"width":47,"height":9}},{"id":"c637e969-7a54-4dda-8f54-9fda6e39af6c","block_type":"box","text":"committees","page_number":19,"box":{"x":814,"y":332,"width":82,"height":9}},{"id":"6ae286bf-b24d-4f1e-a9b3-e61e8984f853","block_type":"box","text":"throughout the years; or other relevant life experiences.","page_number":19,"box":{"x":68,"y":347,"width":395,"height":11}},{"id":"360ef8b7-34e4-411e-9eb9-82a91fdd051e","block_type":"box","text":"The table below discusses some of the experiences, qualifications and skills of each of the Trustees that","page_number":19,"box":{"x":101,"y":370,"width":751,"height":11}},{"id":"62412bfa-5c43-4db1-a875-d78b38386e24","block_type":"box","text":"support the conclusion that each Trustee should serve on the Board.","page_number":19,"box":{"x":69,"y":385,"width":492,"height":11}},{"id":"941c19b6-516d-47f4-a9c4-f372e5617faf","block_type":"box","text":"Trustees Experience, Qualifications and Skills","page_number":19,"box":{"x":68,"y":413,"width":409,"height":9}},{"id":"85037c35-cf48-46b3-99db-cd3440529195","block_type":"box","text":"Independent Trustees","page_number":19,"box":{"x":70,"y":430,"width":154,"height":10}},{"id":"736ed2c1-2389-439a-9088-c084c32b8c81","block_type":"box","text":"Christopher J. Ailman Christopher Ailman has more than 30 years of experience in the financial services","page_number":19,"box":{"x":69,"y":445,"width":781,"height":11}},{"id":"2d625745-3e39-49bb-8d1e-a870c536a085","block_type":"box","text":"industry, including most recently serving as Chief Investment Officer of the California","page_number":19,"box":{"x":265,"y":460,"width":604,"height":11}},{"id":"a21a15a9-c164-4fab-81de-5b06696e6334","block_type":"box","text":"State Teachers Retirement System (CalSTRS) from 2000 to June 2024 where he led its","page_number":19,"box":{"x":265,"y":475,"width":623,"height":11}},{"id":"d07b4a21-3471-4cfa-a1aa-45d96e94b1ea","block_type":"box","text":"investment program. Mr. Ailman currently is a principal at Ailman Advisers. In addition, he","page_number":19,"box":{"x":265,"y":490,"width":637,"height":11}},{"id":"0ba92187-7622-4a2f-a6a4-0a9587a874d3","block_type":"box","text":"has held various roles in the industry, including as member and chair of the asset owner","page_number":19,"box":{"x":265,"y":505,"width":631,"height":11}},{"id":"f422da63-68f2-455e-aba5-20a0628785e6","block_type":"box","text":"committee of the Kroner Center for Financial Research, chairman of the North American","page_number":19,"box":{"x":264,"y":520,"width":626,"height":11}},{"id":"99c9db91-eccb-43d2-8b7f-72b659a9bb20","block_type":"box","text":"Chapter of the 300 Club of Global CIOs, and co-chair of the Milken Global Capital Markets","page_number":19,"box":{"x":265,"y":535,"width":639,"height":11}},{"id":"110bb0f4-46ff-49e4-bc9a-2bd1728c4a11","block_type":"box","text":"Advisory Council. These positions have provided Mr. Ailman with considerable investment","page_number":19,"box":{"x":264,"y":551,"width":637,"height":11}},{"id":"cdedb3a1-85ec-4002-827f-41990e21448a","block_type":"box","text":"expertise across asset classes and strategies, and insight and perspective on the","page_number":19,"box":{"x":265,"y":566,"width":586,"height":11}},{"id":"216dcfae-9ed1-4a27-ab85-ab49a2c40fcb","block_type":"box","text":"markets and the economy. In addition, Mr. Ailman serves as a member of the Governance","page_number":19,"box":{"x":265,"y":581,"width":640,"height":11}},{"id":"0c21d750-ede6-4893-a6e8-e0005a806a17","block_type":"box","text":"Committee and the Performance Oversight Committee.","page_number":19,"box":{"x":265,"y":596,"width":389,"height":11}},{"id":"8d427f49-1ba1-4b06-9ae5-ce5823e45501","block_type":"box","text":"Susan J. Carter Susan J. Carter has over 35 years of experience in investment management. She has","page_number":19,"box":{"x":69,"y":618,"width":806,"height":12}},{"id":"8c895f44-a591-442c-81c8-3c3f7da0eb3d","block_type":"box","text":"served as President & Chief Executive Officer of Commonfund Capital, Inc. (“CCI”), a","page_number":19,"box":{"x":265,"y":634,"width":604,"height":11}},{"id":"0f6cd1f2-ac9c-4d51-a897-76f890f19864","block_type":"box","text":"registered investment adviser focused on non-profit investors, from 1997 to 2013, Chief","page_number":19,"box":{"x":265,"y":649,"width":632,"height":11}},{"id":"1f19a705-ba5c-4e7f-8d8d-1240f5e99548","block_type":"box","text":"Executive Officer of CCI from 2013 to 2014 and Senior Advisor to CCI in 2015.","page_number":19,"box":{"x":265,"y":664,"width":562,"height":9}},{"id":"30d1194b-9c90-46db-8aee-493b23d67b97","block_type":"box","text":"Ms. Carter also served as director of the Pacific Pension Institute from 2014 to 2018,","page_number":19,"box":{"x":265,"y":679,"width":616,"height":10}},{"id":"ebfc37af-4f5d-48c8-b2ec-1b138393981f","block_type":"box","text":"trustee to the Financial Accounting Foundation from 2017 to 2021, Advisory Board","page_number":19,"box":{"x":264,"y":694,"width":591,"height":11}},{"id":"6a757752-5892-46ff-b6e5-b4c2edda8bfb","block_type":"box","text":"Member for the Center for Private Equity and Entrepreneurship at Tuck School of Business","page_number":19,"box":{"x":265,"y":709,"width":641,"height":11}},{"id":"175081b5-3d4f-439c-b4e0-d0739ddfa56d","block_type":"box","text":"from 1997 to 2021, Advisory Board Member for Bridges Fund Management from 2016 to","page_number":19,"box":{"x":264,"y":724,"width":638,"height":12}},{"id":"7e42eef5-7ba3-4ca4-8207-c24255215a5d","block_type":"box","text":"2018, Advisory Board Member for Girls Who Invest from 2015 to 2018 and Board","page_number":19,"box":{"x":265,"y":739,"width":584,"height":12}},{"id":"5a93a614-bbdf-4b12-b276-00e7a709c07b","block_type":"box","text":"Member thereof from 2018 to 2022, and Practitioner Advisory Board Member for Private","page_number":19,"box":{"x":265,"y":755,"width":630,"height":11}},{"id":"21f8a183-0f2c-40d3-8448-20a0b0352c91","block_type":"box","text":"Capital Research Institute (“PCRI”) from 2017 to 2024. She currently serves as Member","page_number":19,"box":{"x":265,"y":770,"width":634,"height":11}},{"id":"cf63648f-8824-4ac0-9da7-d4592d9e18ab","block_type":"box","text":"of the President’s Counsel for Commonfund. These positions have provided her with","page_number":19,"box":{"x":265,"y":785,"width":599,"height":11}},{"id":"c1df4174-7b09-49db-a212-de76dfe33270","block_type":"box","text":"insight and perspective on the markets and the economy.","page_number":19,"box":{"x":265,"y":800,"width":407,"height":11}},{"id":"e6cd2a7b-cbef-4cd3-9e05-c5bc60c74f83","block_type":"box","text":"Collette Chilton Collette Chilton has over 20 years of experience in investment management. She held the","page_number":19,"box":{"x":69,"y":823,"width":837,"height":11}},{"id":"f1df6ff0-e49e-4499-8597-15c3aef5a7f7","block_type":"box","text":"position of Chief Investment Officer of Williams College from October 2006 to June 2023.","page_number":19,"box":{"x":265,"y":838,"width":638,"height":11}},{"id":"b4d7be0e-13cb-4fa4-a4df-ee391a48da53","block_type":"box","text":"Prior to that she was President and Chief Investment Officer of Lucent Asset Management","page_number":19,"box":{"x":265,"y":853,"width":642,"height":11}},{"id":"a5dbc9c7-e869-4dc7-8062-2fb5fd1ffd62","block_type":"box","text":"Corporation, where she oversaw approximately $40 billion in pension and retirement","page_number":19,"box":{"x":265,"y":867,"width":601,"height":12}},{"id":"90726a09-2161-42f1-999b-d7e4368d7db4","block_type":"box","text":"savings assets for the company. These positions have provided her with insight and","page_number":19,"box":{"x":265,"y":883,"width":595,"height":11}},{"id":"09906b20-9a86-4a18-ac51-b5157379003c","block_type":"box","text":"perspective on the markets and the economy.","page_number":19,"box":{"x":265,"y":898,"width":323,"height":11}},{"id":"f88904e0-aa77-4bd6-a8bc-08468e858d64","block_type":"box","text":"I-10","page_number":19,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"5ae8ea4a-3efd-47d9-a106-94f2cb1222c3","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":19,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7cb80a00-3ffe-4fda-b6dd-ea4b56470725","block_type":"box","text":"Trustees Experience, Qualifications and Skills","page_number":20,"box":{"x":68,"y":49,"width":409,"height":9}},{"id":"63f2a8b8-4690-4d74-89f3-7848bd902a92","block_type":"box","text":"Neil A. Cotty Neil A. Cotty has more than 30 years of experience in the financial services industry,","page_number":20,"box":{"x":70,"y":65,"width":798,"height":12}},{"id":"7f3bb703-c9a8-44b8-9cd7-b6347c4dc163","block_type":"box","text":"including 19 years at Bank of America Corporation and its affiliates, where he served, at","page_number":20,"box":{"x":265,"y":81,"width":631,"height":11}},{"id":"561d23e0-dbda-44d9-801d-ef2903bf5a5f","block_type":"box","text":"different times, as the Chief Financial Officer of various businesses including Investment","page_number":20,"box":{"x":265,"y":96,"width":633,"height":11}},{"id":"2edf5b55-4f98-4468-9824-f9172db2a935","block_type":"box","text":"Banking, Global Markets, Wealth Management and Consumer and also served ten years","page_number":20,"box":{"x":265,"y":111,"width":628,"height":11}},{"id":"2d2875ce-53fa-4234-92cb-83d18c52a69e","block_type":"box","text":"as the Chief Accounting Officer for Bank of America Corporation. Mr. Cotty has been","page_number":20,"box":{"x":265,"y":126,"width":596,"height":11}},{"id":"d48ecfda-0e73-4772-8a0e-3d2c315e395e","block_type":"box","text":"determined by the Audit Committee to be an audit committee financial expert, as such","page_number":20,"box":{"x":265,"y":141,"width":616,"height":11}},{"id":"d145d386-ce9a-4d28-9688-1fc545a89c84","block_type":"box","text":"term is defined in the applicable Commission rules.","page_number":20,"box":{"x":264,"y":156,"width":368,"height":11}},{"id":"e1a70353-0c0a-45b2-9056-7451fe7303bb","block_type":"box","text":"Jeffrey Jarczyk Jeffrey Jarczyk is a CPA and has more than 30 years of experience in the financial","page_number":20,"box":{"x":69,"y":179,"width":777,"height":11}},{"id":"39435f6b-0799-4ce4-9957-67552a78d6f2","block_type":"box","text":"services industry, including over 19 years at Fidelity Investments, where he served, at","page_number":20,"box":{"x":265,"y":194,"width":613,"height":11}},{"id":"52b89872-2362-4745-8d58-7a46948a9583","block_type":"box","text":"different times, as the Chief Auditor and the Chief Accounting Officer of Fidelity","page_number":20,"box":{"x":265,"y":209,"width":563,"height":11}},{"id":"ee1f91f1-7004-4386-8240-9de0c824037d","block_type":"box","text":"Investments’ parent company, FMR LLC. Prior to working at Fidelity, Mr. Jarczyk was a","page_number":20,"box":{"x":265,"y":224,"width":607,"height":11}},{"id":"1bb2d5dd-5d2a-4049-a5f0-3e7ddcb2c443","block_type":"box","text":"partner at Deloitte and Arthur Andersen for approximately 17 years. These positions have","page_number":20,"box":{"x":265,"y":239,"width":638,"height":11}},{"id":"5d15a5c3-f4a3-414a-b90a-2611150a232b","block_type":"box","text":"allowed him to work extensively with audit and risk committees and company executives","page_number":20,"box":{"x":265,"y":255,"width":626,"height":11}},{"id":"1e4ac741-80dd-47dd-9280-7d0fb6108d4b","block_type":"box","text":"helping to identify, manage and mitigate risks for financial services companies.","page_number":20,"box":{"x":265,"y":269,"width":563,"height":12}},{"id":"7ee0f346-4666-4afb-87b8-2221ce0c4c18","block_type":"box","text":"Mr. Jarczyk also served as consultant to the Independent Trustees prior to becoming an","page_number":20,"box":{"x":265,"y":285,"width":625,"height":11}},{"id":"10adc6f8-1efd-43e3-97cd-bb34fc7aa37c","block_type":"box","text":"Independent Trustee. Mr. Jarczyk has been determined by the Audit Committee to be an","page_number":20,"box":{"x":265,"y":300,"width":625,"height":11}},{"id":"a40dd4bd-82dd-4c08-8349-0983696c8750","block_type":"box","text":"audit committee financial expert, as such term is defined in the applicable Commission","page_number":20,"box":{"x":265,"y":315,"width":623,"height":11}},{"id":"0e4615bc-e84f-4ca1-84c1-557042e4c4b7","block_type":"box","text":"rules.","page_number":20,"box":{"x":265,"y":330,"width":38,"height":9}},{"id":"99c246e5-4e17-44a0-8b2f-7913cc775ede","block_type":"box","text":"Henry R. Keizer Henry R. Keizer brings over 40 years of executive, financial, operational, strategic and","page_number":20,"box":{"x":70,"y":353,"width":806,"height":11}},{"id":"26267a49-a822-4083-a030-ffbaa8449efe","block_type":"box","text":"global expertise gained through his 35 year career at KPMG, a global professional","page_number":20,"box":{"x":264,"y":368,"width":584,"height":11}},{"id":"884251ae-1b66-49db-a775-b67d545e867d","block_type":"box","text":"services organization and by his service as a director to both publicly and privately held","page_number":20,"box":{"x":265,"y":383,"width":622,"height":11}},{"id":"cb153da4-7b3f-4465-9a60-f69ea086555b","block_type":"box","text":"organizations. He has extensive experience with issues facing complex, global companies","page_number":20,"box":{"x":265,"y":398,"width":638,"height":11}},{"id":"9a2384d4-c33a-48c4-9a28-f591dde675a9","block_type":"box","text":"and expertise in financial reporting, accounting, auditing, risk management, and","page_number":20,"box":{"x":265,"y":413,"width":570,"height":11}},{"id":"5929ebb3-b67e-4a68-ba54-99ba78b3be63","block_type":"box","text":"regulatory affairs for such companies. Mr. Keizer’s experience also includes service as an","page_number":20,"box":{"x":265,"y":428,"width":642,"height":12}},{"id":"b1f05e3a-eec3-42c8-ac9e-332ec88c0543","block_type":"box","text":"audit committee chair to both publicly and privately held organizations across numerous","page_number":20,"box":{"x":265,"y":444,"width":626,"height":11}},{"id":"60355783-8f76-4d93-8dc6-6b0f8fc45100","block_type":"box","text":"industries including professional services, property and casualty reinsurance, insurance,","page_number":20,"box":{"x":265,"y":458,"width":630,"height":12}},{"id":"506e3894-5bf6-408f-99ce-ec17792d8d51","block_type":"box","text":"diversified financial services, banking, direct to consumer, business to business and","page_number":20,"box":{"x":265,"y":474,"width":602,"height":11}},{"id":"946554e6-c8ee-43da-ab7d-5497e60c97db","block_type":"box","text":"technology. Mr. Keizer is a certified public accountant and also served on the board of the","page_number":20,"box":{"x":264,"y":489,"width":643,"height":11}},{"id":"597b754a-07b0-4574-a97a-152e93c97e11","block_type":"box","text":"American Institute of Certified Public Accountants. Mr. Keizer has been determined by the","page_number":20,"box":{"x":264,"y":504,"width":639,"height":11}},{"id":"197e7449-e932-4d3c-81d4-6daca32854b0","block_type":"box","text":"Audit Committee to be an audit committee financial expert, as such term is defined in the","page_number":20,"box":{"x":264,"y":519,"width":641,"height":11}},{"id":"906a7683-478a-4e97-beb2-3be45be4030b","block_type":"box","text":"applicable Commission rules.","page_number":20,"box":{"x":265,"y":534,"width":208,"height":11}},{"id":"88288558-0e78-4588-85b9-69b59f29ea2d","block_type":"box","text":"Cynthia A. Montgomery Cynthia A. Montgomery has served for over 20 years on the boards of registered","page_number":20,"box":{"x":69,"y":557,"width":769,"height":11}},{"id":"b42122e8-9fe9-4128-81a9-88c54fc08383","block_type":"box","text":"investment companies, most recently as a member of the boards of certain BlackRock","page_number":20,"box":{"x":265,"y":572,"width":621,"height":11}},{"id":"53851f42-8286-4c58-99a4-b34f5dddc4e0","block_type":"box","text":"advised Funds and predecessor funds, including the legacy Merrill Lynch Investment","page_number":20,"box":{"x":265,"y":587,"width":599,"height":11}},{"id":"b30185b4-3a5b-413a-97b3-2210377f9754","block_type":"box","text":"Managers, L.P. (“MLIM”) funds. The Board benefits from Ms. Montgomery’s more than 20","page_number":20,"box":{"x":265,"y":602,"width":641,"height":11}},{"id":"616585e1-d559-4b76-be05-9995a2d7200e","block_type":"box","text":"years of academic experience as a professor at Harvard Business School where she","page_number":20,"box":{"x":264,"y":617,"width":602,"height":11}},{"id":"3d06de9a-404b-46e1-9a2e-5b8759f541d1","block_type":"box","text":"taught courses on corporate strategy and corporate governance. Ms. Montgomery also","page_number":20,"box":{"x":264,"y":633,"width":617,"height":11}},{"id":"2551e50b-bbeb-409b-92c0-a27752bdc688","block_type":"box","text":"has business management and corporate governance experience through her service on","page_number":20,"box":{"x":265,"y":648,"width":629,"height":11}},{"id":"06f0ecf8-d5a4-489d-928e-8edaf62f243a","block_type":"box","text":"the corporate boards of a variety of public companies. She has also authored numerous","page_number":20,"box":{"x":264,"y":663,"width":628,"height":11}},{"id":"14400fcb-ba92-4290-ac4c-0293715f4f09","block_type":"box","text":"articles and books on these topics.","page_number":20,"box":{"x":265,"y":678,"width":251,"height":11}},{"id":"5a02cd63-226d-4e35-a885-8780e7ec8feb","block_type":"box","text":"Donald C. Opatrny Donald C. Opatrny has more than 40 years of business, oversight and executive","page_number":20,"box":{"x":70,"y":700,"width":764,"height":12}},{"id":"93f2ae21-8684-46b9-99b5-c33545708581","block_type":"box","text":"experience, including through his service as president, director and investment committee","page_number":20,"box":{"x":265,"y":716,"width":642,"height":11}},{"id":"7b705fde-b8d7-45df-b630-b3ccb6e343bc","block_type":"box","text":"chair for academic and not-for-profit organizations, and his experience as a partner,","page_number":20,"box":{"x":264,"y":731,"width":593,"height":11}},{"id":"b6fa92d5-f482-49f8-a137-92dadc575cb5","block_type":"box","text":"managing director and advisory director at Goldman Sachs for 32 years. He also has","page_number":20,"box":{"x":265,"y":746,"width":603,"height":11}},{"id":"aae0b515-0836-45bf-8c5d-398667c4b25a","block_type":"box","text":"investment management experience as a board member of Athena Capital Advisors LLC.","page_number":20,"box":{"x":265,"y":761,"width":629,"height":11}},{"id":"e1bb99b0-d5d8-4ac4-8936-62f998b88ca1","block_type":"box","text":"I-11","page_number":20,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"f8e91715-d078-4194-8562-d3c9ee5cb728","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":20,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6a1b5dd8-b3e7-4a62-8c53-1404c33a2548","block_type":"box","text":"Trustees Experience, Qualifications and Skills","page_number":21,"box":{"x":68,"y":49,"width":409,"height":9}},{"id":"5a938f85-4cf5-4084-a0d6-2ad9bd8d2e3f","block_type":"box","text":"Lori Richards Lori Richards has more than 30 years of experience in the financial services industry,","page_number":21,"box":{"x":70,"y":65,"width":804,"height":12}},{"id":"ede59586-b8d3-49fe-bff0-94111b8308c3","block_type":"box","text":"most notably as the first Director of the Office of Compliance Inspections and","page_number":21,"box":{"x":265,"y":81,"width":552,"height":11}},{"id":"b942bb50-5290-4ac3-893e-7f65d30ead88","block_type":"box","text":"Examinations (“OCIE”) of the Securities and Exchange Commission (“SEC”) from 1995 to","page_number":21,"box":{"x":265,"y":96,"width":636,"height":11}},{"id":"bbb57ed5-8647-41e0-8974-bd517603c41a","block_type":"box","text":"2009. During 14 years as the Director of OCIE, she led the SEC’s nationwide examination","page_number":21,"box":{"x":265,"y":111,"width":639,"height":11}},{"id":"af7fba35-299f-45a3-9fff-78fc5d6c8447","block_type":"box","text":"oversight program for advisers, mutual funds, hedge funds, broker-dealers, stock","page_number":21,"box":{"x":265,"y":126,"width":576,"height":11}},{"id":"aecedf72-59b9-4ea0-a8ca-13d555b13a72","block_type":"box","text":"exchanges, and other industry firms. Prior to that, from 1985 to 1995, she held various","page_number":21,"box":{"x":265,"y":141,"width":626,"height":11}},{"id":"466ad3b3-06d0-47b2-9988-15b92ac0af17","block_type":"box","text":"roles at the SEC, including Associate Director for Enforcement for the SEC’s Pacific","page_number":21,"box":{"x":265,"y":156,"width":592,"height":11}},{"id":"0d32b8aa-72c4-419a-a28b-48d6f2c4a2d9","block_type":"box","text":"Regional Office and executive assistant and senior advisor to then SEC Chairman Arthur","page_number":21,"box":{"x":265,"y":171,"width":629,"height":12}},{"id":"07d4bdbd-9091-48f4-8f59-b2f77eb8cf2b","block_type":"box","text":"Levitt. More recently, Ms. Richards served as Chief Compliance Officer of the Asset and","page_number":21,"box":{"x":265,"y":186,"width":626,"height":12}},{"id":"f58ae6f4-d8df-4e8f-bac6-4a165ee43655","block_type":"box","text":"Wealth Management global lines of business at JPMorgan Chase & Co. from 2013 to","page_number":21,"box":{"x":264,"y":201,"width":608,"height":12}},{"id":"213e7b4c-7f50-4bda-afcd-e90ae12c30f6","block_type":"box","text":"2018 where she led its global compliance program, advised business leaders on","page_number":21,"box":{"x":265,"y":217,"width":575,"height":11}},{"id":"87952fbe-3390-4151-bacb-7fc221671b4f","block_type":"box","text":"compliance issues, oversaw risk assessment, monitoring, testing and training, and","page_number":21,"box":{"x":264,"y":232,"width":591,"height":11}},{"id":"305b46ab-3eb5-4aef-bcff-b1f898f55b9a","block_type":"box","text":"maintained relationships with regulators. In addition, Ms. Richards served as a member","page_number":21,"box":{"x":265,"y":247,"width":627,"height":11}},{"id":"c2895fc9-1d93-456e-9ffa-cf73ec1950f1","block_type":"box","text":"of the National Adjudicatory Council of the Financial Industry Regulatory Authority","page_number":21,"box":{"x":265,"y":262,"width":578,"height":11}},{"id":"ed658e1b-2846-4ce2-8423-87bddaf0ad94","block_type":"box","text":"(FINRA) from 2019 to 2022 and held the chair and vice chair posts during her tenure.","page_number":21,"box":{"x":265,"y":277,"width":607,"height":11}},{"id":"3fbe4609-7c37-4dda-ac3b-77e4240ba920","block_type":"box","text":"Prior thereto, from 2010 to 2013, she was a Principal at PricewaterhouseCoopers LLP","page_number":21,"box":{"x":265,"y":292,"width":615,"height":11}},{"id":"2fe823bb-2c1e-4283-b984-1c9298a75b68","block_type":"box","text":"(“PwC”) and co-leader of its Asset Management Regulatory group. At PwC, she assisted a","page_number":21,"box":{"x":265,"y":307,"width":638,"height":12}},{"id":"1174ea21-9fa9-4601-8ae1-14a6de5ae990","block_type":"box","text":"broad range of financial services clients in designing and implementing risk management","page_number":21,"box":{"x":265,"y":322,"width":635,"height":12}},{"id":"c7c43b1b-ac81-4db2-8248-c762c8d2c820","block_type":"box","text":"and compliance programs, and preparing for new regulatory expectations. These positions","page_number":21,"box":{"x":265,"y":338,"width":642,"height":11}},{"id":"a51b561e-d22a-4c3d-9a4d-1363b6e71caa","block_type":"box","text":"have provided her with insight and perspective on the markets and the economy, as well","page_number":21,"box":{"x":265,"y":353,"width":627,"height":11}},{"id":"f0aeb819-ced9-4638-8415-073f4f4f487c","block_type":"box","text":"as asset management regulation and compliance. In addition, Ms. Richards serves as a","page_number":21,"box":{"x":265,"y":368,"width":628,"height":11}},{"id":"ada5315e-fc5a-4926-ae75-d93e670c7631","block_type":"box","text":"member of the Audit Committee and the Compliance Committee.","page_number":21,"box":{"x":265,"y":383,"width":460,"height":11}},{"id":"dd9039d6-d5a3-4d6f-bf0e-5880a2428e0f","block_type":"box","text":"Mark Stalnecker Mark Stalnecker has gained a wealth of experience in investing and asset management","page_number":21,"box":{"x":70,"y":406,"width":818,"height":11}},{"id":"283d7e4c-3aa4-4dc5-b089-bb504d0d63cc","block_type":"box","text":"from his over 13 years of service as the Chief Investment Officer of the University of","page_number":21,"box":{"x":264,"y":421,"width":603,"height":11}},{"id":"d463ecca-df83-4a66-9a25-cd00fdf9a068","block_type":"box","text":"Delaware as well as from his various positions with First Union Corporation, including","page_number":21,"box":{"x":265,"y":436,"width":606,"height":11}},{"id":"901ebb7d-6f79-419f-81e3-ff6eb2a65e8f","block_type":"box","text":"Senior Vice President and State Investment Director of First Investment Advisors. The","page_number":21,"box":{"x":265,"y":451,"width":608,"height":9}},{"id":"f3d5c810-b358-4b90-9859-a7c3401ea737","block_type":"box","text":"Board benefits from his experience and perspective as the Chief Investment Officer of a","page_number":21,"box":{"x":265,"y":466,"width":626,"height":11}},{"id":"4e8ce0f8-e949-46d8-b894-0de3de9630ef","block_type":"box","text":"university endowment and from the oversight experience he gained from service on","page_number":21,"box":{"x":265,"y":481,"width":591,"height":11}},{"id":"813e209d-f41c-4157-ae0d-2390a701b0cd","block_type":"box","text":"various private and non-profit boards.","page_number":21,"box":{"x":264,"y":496,"width":265,"height":11}},{"id":"8f31439f-524b-4c99-a5e8-5d5fa0b02e90","block_type":"box","text":"Marc D. Stern Marc D. Stern has more than 30 years of experience in investing and asset management.","page_number":21,"box":{"x":70,"y":519,"width":833,"height":11}},{"id":"b16ca217-8eb7-4c06-a4b1-95793e80cd47","block_type":"box","text":"Mr. Stern served as the Chief Executive Officer at Bessemer Trust, a wealth management","page_number":21,"box":{"x":265,"y":534,"width":638,"height":11}},{"id":"3cc39946-49d1-47f8-a888-ad2e1bde994b","block_type":"box","text":"business, for 13 years. During his tenure at Bessemer Trust, Mr. Stern served on the","page_number":21,"box":{"x":265,"y":549,"width":608,"height":11}},{"id":"8c547906-a211-47ac-be09-9e4bbba68827","block_type":"box","text":"firm’s board of directors, chaired the board’s trust and investment committee, and led the","page_number":21,"box":{"x":264,"y":564,"width":645,"height":11}},{"id":"e09c650a-9062-4ff7-9f15-e2d3f661ea3d","block_type":"box","text":"firm’s executive committee. He also served as Bessemer’s Chief Investment Officer for 8","page_number":21,"box":{"x":264,"y":579,"width":639,"height":9}},{"id":"080ae2f6-2f2d-485a-bf6b-a7a1e5a2bebe","block_type":"box","text":"years, where he was Chair of the Investment Policy and Strategy Committee with","page_number":21,"box":{"x":264,"y":595,"width":573,"height":11}},{"id":"29bc3fd2-62f5-4c9a-8231-d257b30232a1","block_type":"box","text":"responsibility for overall asset allocation and investment strategy. Mr. Stern also served","page_number":21,"box":{"x":265,"y":610,"width":625,"height":11}},{"id":"6637a5f9-10ad-4158-9d0d-4073e1dd83a8","block_type":"box","text":"as Chair of the Private Clients Investment group at AllianceBernstein. These positions","page_number":21,"box":{"x":265,"y":625,"width":610,"height":11}},{"id":"fadd3b12-0106-4fd0-9550-2e19fec12d89","block_type":"box","text":"provide Mr. Stern with insight and perspective into investment management, the economy,","page_number":21,"box":{"x":265,"y":640,"width":642,"height":11}},{"id":"3497742d-b656-4a0f-abfb-5ad036ab0b6d","block_type":"box","text":"and fiduciary governance. Mr. Stern also served as consultant to the Independent","page_number":21,"box":{"x":265,"y":655,"width":583,"height":11}},{"id":"a16f3972-e353-43e2-95f9-32b2884bd752","block_type":"box","text":"Trustees prior to becoming an Independent Trustee.","page_number":21,"box":{"x":264,"y":670,"width":369,"height":11}},{"id":"308c9aa8-8b17-4217-873f-fd93304393a7","block_type":"box","text":"Kenneth L. Urish Kenneth L. Urish has served for over 15 years on the boards of registered investment","page_number":21,"box":{"x":70,"y":693,"width":807,"height":11}},{"id":"01fe282c-56cd-491a-9efc-162511504ac0","block_type":"box","text":"companies, most recently as a member of the boards of certain BlackRock-advised Funds","page_number":21,"box":{"x":264,"y":708,"width":641,"height":11}},{"id":"abe26e10-f788-4082-b89f-700cd22d77f8","block_type":"box","text":"and predecessor funds, including the legacy BlackRock funds. He has over 30 years of","page_number":21,"box":{"x":265,"y":723,"width":618,"height":11}},{"id":"0bd65dcb-346d-452c-b760-907650f52154","block_type":"box","text":"experience in public accounting. Mr. Urish has served as a managing member of an","page_number":21,"box":{"x":265,"y":738,"width":594,"height":11}},{"id":"7b51e8c2-75d1-472b-ae48-d221dc360a1a","block_type":"box","text":"accounting and consulting firm. Mr. Urish has been determined by the Audit Committee to","page_number":21,"box":{"x":265,"y":753,"width":639,"height":12}},{"id":"00a9f53d-43ed-442c-96c2-fe456d532ae4","block_type":"box","text":"be an audit committee financial expert, as such term is defined in the applicable","page_number":21,"box":{"x":265,"y":768,"width":575,"height":11}},{"id":"1d522d97-3501-4986-97b4-87b95eed188c","block_type":"box","text":"Commission rules.","page_number":21,"box":{"x":265,"y":784,"width":131,"height":9}},{"id":"542c035b-1741-4adb-8a0d-34dc6556ee7c","block_type":"box","text":"I-12","page_number":21,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"1cd1e3e4-5db4-4eaa-ae89-194fa6001b18","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":21,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"18d14b58-c857-464b-9010-5259dea14643","block_type":"box","text":"Trustees Experience, Qualifications and Skills","page_number":22,"box":{"x":68,"y":49,"width":409,"height":9}},{"id":"4921a1e1-aa38-4b8e-9d45-0de3527e6213","block_type":"box","text":"Claire A. Walton Claire A. Walton has over 25 years of experience in investment management. She has","page_number":22,"box":{"x":69,"y":65,"width":808,"height":12}},{"id":"de0ad675-7b6f-4a70-b7a5-298ee1888fb3","block_type":"box","text":"served as the Chief Operating Officer and Chief Financial Officer of Liberty Square Asset","page_number":22,"box":{"x":265,"y":81,"width":630,"height":11}},{"id":"5aecb0b8-e8b3-4dc4-87c3-ee8e7bdcc243","block_type":"box","text":"Management, LP / Steel Partners Japan Asset Management, LP from 1998 to 2015, an","page_number":22,"box":{"x":265,"y":96,"width":627,"height":11}},{"id":"e8d99eb7-4051-42f9-bd2e-cf7396d45186","block_type":"box","text":"investment manager that specialized in long/short non-U.S. equity investments, and was","page_number":22,"box":{"x":265,"y":111,"width":632,"height":11}},{"id":"2b7c46b4-3591-497b-8185-4f2c9e28003d","block_type":"box","text":"an owner and General Partner of Neon Liberty Capital Management, LLC from 2003 to","page_number":22,"box":{"x":265,"y":126,"width":615,"height":11}},{"id":"02e74330-bd29-4cc8-96b5-872cfb4c1bc2","block_type":"box","text":"2023, a firm focusing on long/short equities in global emerging and frontier markets.","page_number":22,"box":{"x":265,"y":141,"width":608,"height":11}},{"id":"e0d01f9c-db87-4846-945c-090c3a7e26ea","block_type":"box","text":"These positions have provided her with insight and perspective on the markets and the","page_number":22,"box":{"x":264,"y":156,"width":620,"height":11}},{"id":"5e1ece10-d1d2-46c0-9383-3121b10ed40e","block_type":"box","text":"economy. Ms. Walton has been determined by the Audit Committee to be an audit","page_number":22,"box":{"x":265,"y":171,"width":584,"height":11}},{"id":"d637694f-657f-4bc8-a95b-f1fc92a8e72f","block_type":"box","text":"committee financial expert, as such term is defined in the applicable Commission rules.","page_number":22,"box":{"x":264,"y":186,"width":629,"height":11}},{"id":"dd3f776b-6c3e-4ff5-801f-0f53739df98c","block_type":"box","text":"Interested Trustees","page_number":22,"box":{"x":70,"y":209,"width":138,"height":9}},{"id":"ecfcbb7b-6635-4013-ad52-48234f4d9034","block_type":"box","text":"Robert Fairbairn Robert Fairbairn has more than 25 years of experience with BlackRock, Inc. and over 30","page_number":22,"box":{"x":70,"y":224,"width":823,"height":11}},{"id":"bf04cb92-1b59-4184-b8ce-80b9b2601fd9","block_type":"box","text":"years of experience in finance and asset management. In particular, Mr. Fairbairn’s","page_number":22,"box":{"x":264,"y":239,"width":593,"height":12}},{"id":"10c6f6ae-1bbe-487e-93c0-b614efb2baa0","block_type":"box","text":"positions as Vice Chairman of BlackRock, Inc., Member of BlackRock’s Global Operating","page_number":22,"box":{"x":265,"y":254,"width":629,"height":12}},{"id":"6388619a-769f-4173-a96f-5ffd2d10dfb9","block_type":"box","text":"Committee and Co-Chair of BlackRock’s Human Capital Committee provide the Board with","page_number":22,"box":{"x":265,"y":269,"width":639,"height":11}},{"id":"9e76087d-609f-4580-bf38-6b5f878aad95","block_type":"box","text":"a wealth of practical business knowledge and leadership. In addition, Mr. Fairbairn has","page_number":22,"box":{"x":265,"y":285,"width":617,"height":11}},{"id":"f7fb8052-5704-4a82-8664-6d5799ee196e","block_type":"box","text":"global investment management and oversight experience through his former positions as","page_number":22,"box":{"x":264,"y":300,"width":634,"height":11}},{"id":"b05e58d8-3816-4c97-89a0-c73131c39c3a","block_type":"box","text":"Member of BlackRock’s Global Executive Committee, Global Head of BlackRock’s Retail","page_number":22,"box":{"x":265,"y":315,"width":624,"height":10}},{"id":"1c747811-ee4d-4239-8a63-83f8314408ec","block_type":"box","text":"and iShares","page_number":22,"box":{"x":265,"y":330,"width":84,"height":9}},{"id":"cfae36cf-65d0-47a8-81c5-f49ef9afbad5","block_type":"box","text":"®","page_number":22,"box":{"x":350,"y":330,"width":6,"height":5}},{"id":"92cbee3c-bebf-4a62-ad8b-66668615bab6","block_type":"box","text":"businesses, Head of BlackRock’s Global Client Group, Chairman of","page_number":22,"box":{"x":362,"y":330,"width":478,"height":11}},{"id":"ed34f468-5f28-41bb-9680-f1eecfebe646","block_type":"box","text":"BlackRock’s international businesses and his previous oversight over BlackRock’s","page_number":22,"box":{"x":265,"y":345,"width":585,"height":11}},{"id":"8d3ba17c-469a-4b2b-ae3f-34789d4b79bb","block_type":"box","text":"Strategic Partner Program and Strategic Product Management Group. Mr. Fairbairn also","page_number":22,"box":{"x":265,"y":360,"width":620,"height":12}},{"id":"2d7dd4a8-1069-43f4-bde3-a76c762f2ddb","block_type":"box","text":"serves as a board member for the funds in the BlackRock Fixed-Income Complex.","page_number":22,"box":{"x":265,"y":375,"width":578,"height":11}},{"id":"ccaf5963-755e-43b3-b143-b10d7fb9d688","block_type":"box","text":"John M. Perlowski John M. Perlowski’s experience as Senior Managing Director of BlackRock, Inc. since","page_number":22,"box":{"x":69,"y":398,"width":800,"height":11}},{"id":"3b642170-0581-4870-8b54-eb91b5154da5","block_type":"box","text":"2026, as Managing Director of BlackRock, Inc. from 2009 to 2025, as the Head of","page_number":22,"box":{"x":265,"y":413,"width":593,"height":11}},{"id":"8546ec38-c337-44be-94b4-e9c19024ba26","block_type":"box","text":"BlackRock Global Business Operations Services since 2009, and as President and Chief","page_number":22,"box":{"x":265,"y":428,"width":633,"height":11}},{"id":"a293c972-3ab4-4fe2-aeed-d0d173538053","block_type":"box","text":"Executive Officer of the BlackRock-advised Funds provides him with a strong","page_number":22,"box":{"x":265,"y":443,"width":542,"height":12}},{"id":"f65f71fa-898e-4203-908e-70b48e49497a","block_type":"box","text":"understanding of the BlackRock-advised Funds, their operations, and the business and","page_number":22,"box":{"x":265,"y":458,"width":617,"height":12}},{"id":"6d08e362-4d1e-4f28-b33b-07003315ce83","block_type":"box","text":"regulatory issues facing the BlackRock-advised Funds. Mr. Perlowski’s prior position as","page_number":22,"box":{"x":265,"y":474,"width":620,"height":11}},{"id":"9d0ac471-a13d-4699-b336-b730ea45b196","block_type":"box","text":"Managing Director and Chief Operating Officer of the Global Product Group at Goldman","page_number":22,"box":{"x":265,"y":489,"width":616,"height":11}},{"id":"6bedc624-890a-4c30-8e83-34e57c5e1544","block_type":"box","text":"Sachs Asset Management, and his former service as Treasurer and Senior Vice President","page_number":22,"box":{"x":265,"y":504,"width":639,"height":11}},{"id":"6ab2233b-f961-40f1-b6ee-3527a4b63b5c","block_type":"box","text":"of the Goldman Sachs Mutual Funds and as Director of the Goldman Sachs Offshore","page_number":22,"box":{"x":265,"y":519,"width":603,"height":9}},{"id":"90342106-2720-48b2-b80b-b17cd8e441d4","block_type":"box","text":"Funds provides the Board with the benefit of his experience with the management","page_number":22,"box":{"x":265,"y":534,"width":582,"height":11}},{"id":"c9290170-1a33-4dec-bb29-20f16a8e1ba7","block_type":"box","text":"practices of other financial companies. Mr. Perlowski also serves as a board member for","page_number":22,"box":{"x":265,"y":549,"width":632,"height":11}},{"id":"5842b457-4db1-4455-86e4-521538674047","block_type":"box","text":"the funds in the BlackRock Fixed-Income Complex. Mr. Perlowski is a member of","page_number":22,"box":{"x":264,"y":564,"width":572,"height":11}},{"id":"404f151c-c27f-4b1f-a253-eed64a5020ee","block_type":"box","text":"BlackRock’s Global Executive Committee.","page_number":22,"box":{"x":265,"y":580,"width":294,"height":8}},{"id":"62e2ba8d-9871-40e1-888e-ddcf2c88f582","block_type":"box","text":"Biographical Information","page_number":22,"box":{"x":69,"y":611,"width":178,"height":11}},{"id":"23f93ea7-3db4-406b-a6b0-4a46f1b46914","block_type":"box","text":"Certain biographical and other information relating to the Trustees of the Trust is set forth below, including their","page_number":22,"box":{"x":102,"y":634,"width":798,"height":11}},{"id":"b0ae7c18-45e0-4f39-bbee-76ec873fe92e","block_type":"box","text":"address and year of birth, principal occupations for at least the last five years, length of time served, total number of","page_number":22,"box":{"x":69,"y":649,"width":836,"height":11}},{"id":"e1d5bd9a-acca-4a5d-a005-1cb00af60dea","block_type":"box","text":"registered investment companies and investment portfolios overseen in the BlackRock-advised Funds and any","page_number":22,"box":{"x":69,"y":664,"width":785,"height":11}},{"id":"0913657b-901a-49b7-bbd5-c6d390ea125a","block_type":"box","text":"currently held public company and other investment company directorships.","page_number":22,"box":{"x":69,"y":679,"width":536,"height":11}},{"id":"63b4045a-1b62-4a53-8d14-a5060aec03ab","block_type":"box","text":"I-13","page_number":22,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"d03f324a-f9a3-40cc-855c-eb234d5cb6ec","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":22,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"972a515e-1e00-4224-83ac-3ff187196742","block_type":"box","text":"Name","page_number":23,"box":{"x":131,"y":150,"width":32,"height":7}},{"id":"4113b1f0-ccb8-4b3c-a620-0f2d559d3f16","block_type":"box","text":"and Year of Birth","page_number":23,"box":{"x":93,"y":160,"width":97,"height":7}},{"id":"c7de78f2-fa6d-4793-bbc0-b75d32613b65","block_type":"box","text":"1,2","page_number":23,"box":{"x":191,"y":160,"width":9,"height":4}},{"id":"8156df5b-b91d-4828-9e7f-df794d81949b","block_type":"box","text":"Position(s)","page_number":23,"box":{"x":252,"y":130,"width":62,"height":8}},{"id":"42a992bd-b5f3-441e-aa4d-b43b86578bb8","block_type":"box","text":"Held","page_number":23,"box":{"x":271,"y":140,"width":25,"height":7}},{"id":"d2c2ef40-8dcd-4e1d-b052-a3e6030909d8","block_type":"box","text":"(Length of","page_number":23,"box":{"x":254,"y":150,"width":60,"height":9}},{"id":"60e2eb46-54eb-4451-9ad9-ca201245f640","block_type":"box","text":"Service)","page_number":23,"box":{"x":257,"y":160,"width":48,"height":9}},{"id":"78fda977-b74d-4ade-9a03-f82bb4702110","block_type":"box","text":"3","page_number":23,"box":{"x":306,"y":160,"width":3,"height":3}},{"id":"f0d21adb-6268-4d28-bb18-008a346bd021","block_type":"box","text":"Principal Occupation(s)","page_number":23,"box":{"x":411,"y":150,"width":136,"height":9}},{"id":"3cb1eac0-08e0-4dc8-80fb-7396041f2454","block_type":"box","text":"During Past Five Years","page_number":23,"box":{"x":414,"y":160,"width":130,"height":9}},{"id":"12d6c567-b4b6-457b-a31d-c4f9e11272b3","block_type":"box","text":"Number of","page_number":23,"box":{"x":665,"y":49,"width":59,"height":7}},{"id":"41b709e2-84be-426c-9cb3-6d2bebe0b533","block_type":"box","text":"BlackRock","page_number":23,"box":{"x":662,"y":59,"width":66,"height":7}},{"id":"471aaede-038a-49db-b5fc-f0fb5c83bfe8","block_type":"box","text":"Advised","page_number":23,"box":{"x":672,"y":69,"width":45,"height":7}},{"id":"2d15f8f0-06b3-4cb2-aef5-65e0a3395915","block_type":"box","text":"Registered","page_number":23,"box":{"x":663,"y":79,"width":62,"height":9}},{"id":"f3b718ed-ddb5-4c17-8b26-c62a3afe71c1","block_type":"box","text":"Investment","page_number":23,"box":{"x":662,"y":89,"width":65,"height":7}},{"id":"4eeb6595-3c04-48bf-9abc-e5bea755b3c4","block_type":"box","text":"Companies","page_number":23,"box":{"x":663,"y":99,"width":63,"height":9}},{"id":"aa8b2437-fd6b-4551-90de-b095f97af021","block_type":"box","text":"(“RICs”)","page_number":23,"box":{"x":670,"y":109,"width":48,"height":9}},{"id":"30166f46-98bf-4206-bf46-2dea273f6c88","block_type":"box","text":"Consisting of","page_number":23,"box":{"x":656,"y":120,"width":77,"height":8}},{"id":"c1d5c595-66c6-49c5-951f-d21b787bfc12","block_type":"box","text":"Investment","page_number":23,"box":{"x":662,"y":130,"width":65,"height":7}},{"id":"6e899c18-ec68-4a84-90bf-ab9a99cec530","block_type":"box","text":"Portfolios","page_number":23,"box":{"x":667,"y":140,"width":55,"height":7}},{"id":"44af2be1-48cb-4a05-aa20-8deb694a5e49","block_type":"box","text":"(“Portfolios”)","page_number":23,"box":{"x":655,"y":150,"width":78,"height":9}},{"id":"db73b7d1-e5d4-4f15-9f86-f876e756151b","block_type":"box","text":"Overseen","page_number":23,"box":{"x":668,"y":160,"width":53,"height":7}},{"id":"7f600f46-91cf-43e4-a6b4-fe15b3ccf39d","block_type":"box","text":"Public","page_number":23,"box":{"x":824,"y":89,"width":35,"height":7}},{"id":"b89034fb-d273-447c-86f2-8b1528b7b244","block_type":"box","text":"Company","page_number":23,"box":{"x":815,"y":99,"width":53,"height":9}},{"id":"80f5d547-d520-44c9-9e91-e6ac63ddfadc","block_type":"box","text":"and Other","page_number":23,"box":{"x":813,"y":109,"width":57,"height":8}},{"id":"eab7a8a7-1efb-469c-8100-e9e0cf5a6e5b","block_type":"box","text":"Investment","page_number":23,"box":{"x":809,"y":120,"width":64,"height":7}},{"id":"90004ae6-8dd6-4e5c-b18e-529b52fca471","block_type":"box","text":"Company","page_number":23,"box":{"x":815,"y":130,"width":53,"height":8}},{"id":"64aa1c35-dc6d-4511-b44c-99e0c457a056","block_type":"box","text":"Directorships","page_number":23,"box":{"x":803,"y":140,"width":77,"height":8}},{"id":"87f6e83f-9158-4d73-91b5-ac7937af1001","block_type":"box","text":"Held During","page_number":23,"box":{"x":808,"y":150,"width":67,"height":9}},{"id":"990a7db9-5f40-4a25-ae63-7eb2b7263422","block_type":"box","text":"Past Five Years","page_number":23,"box":{"x":797,"y":160,"width":88,"height":7}},{"id":"faded787-1c89-4b68-bd2d-908be23bef6d","block_type":"box","text":"Independent Trustees","page_number":23,"box":{"x":70,"y":174,"width":138,"height":10}},{"id":"6898a6fd-c916-4dc5-ad8e-996e3704f66e","block_type":"box","text":"Mark Stalnecker","page_number":23,"box":{"x":69,"y":192,"width":98,"height":8}},{"id":"322fa754-c321-435e-9998-07d2ee0f3ec3","block_type":"box","text":"1951","page_number":23,"box":{"x":69,"y":208,"width":33,"height":8}},{"id":"75da581e-66ca-4885-aeab-556abbedf8ad","block_type":"box","text":"Chair of the","page_number":23,"box":{"x":235,"y":192,"width":69,"height":8}},{"id":"8243cd4b-be9a-4b4d-a311-be46f903b2b1","block_type":"box","text":"Board","page_number":23,"box":{"x":236,"y":204,"width":34,"height":8}},{"id":"65e4b1b0-4332-4a5b-86d8-dad3f8304578","block_type":"box","text":"and Trustee","page_number":23,"box":{"x":235,"y":216,"width":71,"height":8}},{"id":"2e8ccc11-223b-4fac-8d9b-4b8680359f34","block_type":"box","text":"(Since 2019)","page_number":23,"box":{"x":235,"y":228,"width":78,"height":9}},{"id":"689ebf5a-8fdb-4be3-9489-8d22c729f05f","block_type":"box","text":"Chief Investment Officer, University of","page_number":23,"box":{"x":343,"y":192,"width":226,"height":10}},{"id":"069788c1-dacd-43bf-959a-d06094a1d4f7","block_type":"box","text":"Delaware from 1999 to 2013; Trustee and","page_number":23,"box":{"x":343,"y":204,"width":257,"height":9}},{"id":"ee16cdde-f5eb-466c-a2f7-fc527dd176bf","block_type":"box","text":"Chair of the Finance and Investment","page_number":23,"box":{"x":343,"y":216,"width":217,"height":8}},{"id":"27d577a0-c113-43d5-969f-b114db4f440d","block_type":"box","text":"Committees, Winterthur Museum and","page_number":23,"box":{"x":343,"y":228,"width":227,"height":9}},{"id":"48ec0bc0-15db-4221-b6d3-c1775a95120a","block_type":"box","text":"Country Estate from 2005 to 2016; Member","page_number":23,"box":{"x":343,"y":240,"width":270,"height":10}},{"id":"83a17f67-574c-4670-a73c-deb61f5c6696","block_type":"box","text":"of the Investment Committee, Delaware","page_number":23,"box":{"x":343,"y":251,"width":239,"height":10}},{"id":"6cf09ae1-8144-43e1-b702-24f9dd31682e","block_type":"box","text":"Public Employees’ Retirement System from","page_number":23,"box":{"x":343,"y":263,"width":259,"height":11}},{"id":"e0b080ba-038d-4d6e-8cb7-df1041d44d7e","block_type":"box","text":"2002 to 2024; Member of the Investment","page_number":23,"box":{"x":343,"y":275,"width":254,"height":10}},{"id":"c89cac0a-a4d8-4120-a497-0a91c64193a1","block_type":"box","text":"Committee, Christiana Care Health System","page_number":23,"box":{"x":343,"y":288,"width":258,"height":9}},{"id":"f33b7e7c-e5ba-44ae-8fe9-e1af4f5794b0","block_type":"box","text":"from 2009 to 2017; Member of the","page_number":23,"box":{"x":342,"y":299,"width":215,"height":10}},{"id":"ebab7329-69b9-4891-b9e4-49a435698aca","block_type":"box","text":"Investment Committee, Delaware Community","page_number":23,"box":{"x":343,"y":311,"width":273,"height":10}},{"id":"c0e1c48c-9365-4171-8c84-15f7ec8422d8","block_type":"box","text":"Foundation from 2013 to 2014; Director and","page_number":23,"box":{"x":343,"y":323,"width":269,"height":10}},{"id":"4c35fda5-dd8f-4fd4-9063-47679d7a9949","block_type":"box","text":"Chair of the Audit Committee, SEI Private","page_number":23,"box":{"x":343,"y":335,"width":246,"height":10}},{"id":"dabc38b9-066e-4787-88f7-6d4a7e42c380","block_type":"box","text":"Trust Co. from 2001 to 2014.","page_number":23,"box":{"x":342,"y":347,"width":180,"height":8}},{"id":"21e36c36-3394-48c1-8945-141b65b04b22","block_type":"box","text":"26 RICs consisting of","page_number":23,"box":{"x":627,"y":192,"width":129,"height":10}},{"id":"4650bce2-f887-4afd-b3a6-f0c75f81d89f","block_type":"box","text":"170 Portfolios","page_number":23,"box":{"x":627,"y":204,"width":85,"height":8}},{"id":"e977280e-2bcf-4696-978a-0607647a9a1a","block_type":"box","text":"None","page_number":23,"box":{"x":774,"y":192,"width":30,"height":8}},{"id":"2169ac0f-9edf-4c40-9809-c1a5c5b39add","block_type":"box","text":"Christopher J. Ailman","page_number":23,"box":{"x":69,"y":365,"width":126,"height":10}},{"id":"ede85835-31d9-4751-a8b8-5e18974dc93c","block_type":"box","text":"1958","page_number":23,"box":{"x":69,"y":381,"width":33,"height":8}},{"id":"8351dee8-418c-41b7-998a-387d8a915cdd","block_type":"box","text":"Trustee","page_number":23,"box":{"x":235,"y":365,"width":45,"height":8}},{"id":"7c31111f-2bb5-470d-b2fe-f5cb32cf2155","block_type":"box","text":"(Since 2024)","page_number":23,"box":{"x":235,"y":377,"width":78,"height":10}},{"id":"179735e4-46d0-42bc-840a-8d63ee5b7313","block_type":"box","text":"Principal, Ailman Advisers, since 2024; Chief","page_number":23,"box":{"x":343,"y":365,"width":270,"height":10}},{"id":"5a2ef810-1c81-46fe-8680-c8cd7c8f0d36","block_type":"box","text":"Investment Officer, California State Teachers","page_number":23,"box":{"x":343,"y":377,"width":268,"height":9}},{"id":"1d12e0b4-2bda-482f-9ea5-e309773e5cd7","block_type":"box","text":"Retirement System (CalSTRS) from 2000 to","page_number":23,"box":{"x":343,"y":389,"width":264,"height":10}},{"id":"565a7266-bf88-4fe1-9204-b81274bd33a8","block_type":"box","text":"2024.","page_number":23,"box":{"x":343,"y":401,"width":36,"height":8}},{"id":"22cf414c-5352-4351-acd9-d0a7eb2fe484","block_type":"box","text":"26 RICs consisting of","page_number":23,"box":{"x":627,"y":365,"width":129,"height":10}},{"id":"183331cc-6e86-46d8-8f49-cc8d2830f8c8","block_type":"box","text":"170 Portfolios","page_number":23,"box":{"x":627,"y":377,"width":85,"height":8}},{"id":"df787041-04b9-4caf-9532-fe7aeffc66b4","block_type":"box","text":"None","page_number":23,"box":{"x":774,"y":365,"width":30,"height":8}},{"id":"9e65f701-7b5c-4f21-98d8-643e8ba62667","block_type":"box","text":"Susan J. Carter","page_number":23,"box":{"x":69,"y":419,"width":93,"height":8}},{"id":"fffa9357-23fe-4f3b-8e22-7cf6e1b742e7","block_type":"box","text":"1956","page_number":23,"box":{"x":69,"y":434,"width":33,"height":8}},{"id":"4d5dd06b-1964-4062-b314-3d319abca859","block_type":"box","text":"Trustee","page_number":23,"box":{"x":235,"y":419,"width":45,"height":8}},{"id":"e79305bf-034e-446a-a59e-1d1c8ec4bd15","block_type":"box","text":"(Since 2019)","page_number":23,"box":{"x":235,"y":431,"width":78,"height":9}},{"id":"33a9a952-f2b2-4eb3-8935-72842316848d","block_type":"box","text":"Trustee, Financial Accounting Foundation","page_number":23,"box":{"x":342,"y":419,"width":246,"height":10}},{"id":"43a7c720-9234-4585-9759-58911fe5816e","block_type":"box","text":"from 2017 to 2021; Advisory Board","page_number":23,"box":{"x":342,"y":430,"width":217,"height":10}},{"id":"038521cb-05d5-4465-93d7-eb44b0e6038f","block_type":"box","text":"Member, Center for Private Equity and","page_number":23,"box":{"x":343,"y":442,"width":227,"height":10}},{"id":"bea62396-4069-442f-a156-58fb7ad6a4fd","block_type":"box","text":"Entrepreneurship at Tuck School of Business","page_number":23,"box":{"x":343,"y":454,"width":270,"height":10}},{"id":"1e29e174-3cec-4a38-b5d0-018fd2b54cd0","block_type":"box","text":"from 1997 to 2021; Director, Pacific Pension","page_number":23,"box":{"x":342,"y":466,"width":272,"height":10}},{"id":"f5cb1666-f4eb-41d2-8de0-df4627fbc9dc","block_type":"box","text":"Institute from 2014 to 2018; Senior Advisor,","page_number":23,"box":{"x":343,"y":478,"width":267,"height":10}},{"id":"a104220c-4a36-4e9d-804a-f335a2fec8e7","block_type":"box","text":"Commonfund Capital, Inc. (“CCI”)","page_number":23,"box":{"x":343,"y":490,"width":201,"height":10}},{"id":"2ed9a7ed-62c2-4bc6-a453-9b5a918227d8","block_type":"box","text":"(investment adviser) in 2015; Chief Executive","page_number":23,"box":{"x":343,"y":502,"width":272,"height":10}},{"id":"0de99d1f-cd55-48ef-b81a-30a6444711ea","block_type":"box","text":"Officer, CCI from 2013 to 2014; President &","page_number":23,"box":{"x":343,"y":514,"width":268,"height":10}},{"id":"1caa2701-52a2-4851-bb12-d3eba12dedcb","block_type":"box","text":"Chief Executive Officer, CCI from 1997 to","page_number":23,"box":{"x":343,"y":526,"width":247,"height":10}},{"id":"66cfbc9d-c5fa-45d5-b1d1-4f8250d51e7d","block_type":"box","text":"2013; Advisory Board Member, Girls Who","page_number":23,"box":{"x":343,"y":538,"width":250,"height":10}},{"id":"9c6cb1da-538f-4d6a-a326-fd2583ae75bd","block_type":"box","text":"Invest from 2015 to 2018 and Board","page_number":23,"box":{"x":343,"y":550,"width":223,"height":8}},{"id":"0e55b9a2-7878-4519-9409-e8f2a6821875","block_type":"box","text":"Member thereof from 2018 to 2022;","page_number":23,"box":{"x":343,"y":562,"width":222,"height":10}},{"id":"96205aec-a44d-45bd-8ae4-f977e48f09dd","block_type":"box","text":"Advisory Board Member, Bridges Fund","page_number":23,"box":{"x":342,"y":574,"width":230,"height":10}},{"id":"5fae2608-b0ec-4b91-bb9a-23d12ea17d40","block_type":"box","text":"Management from 2016 to 2018;","page_number":23,"box":{"x":343,"y":586,"width":204,"height":10}},{"id":"dc6b5b6c-eb01-4d90-9a00-62a4220e5603","block_type":"box","text":"Practitioner Advisory Board Member, Private","page_number":23,"box":{"x":343,"y":598,"width":263,"height":10}},{"id":"1ae60ab5-273a-4f12-aa34-3aa8bb4e206e","block_type":"box","text":"Capital Research Institute (“PCRI”) from","page_number":23,"box":{"x":343,"y":610,"width":240,"height":10}},{"id":"a19a2a61-b293-4498-9a2f-739d55533d6f","block_type":"box","text":"2017 to 2024; Lecturer in the Practice of","page_number":23,"box":{"x":343,"y":622,"width":249,"height":9}},{"id":"83d417c3-abbd-48e5-8af2-6d9131ddf56d","block_type":"box","text":"Management, Yale School of Management","page_number":23,"box":{"x":343,"y":634,"width":255,"height":10}},{"id":"0ef911c9-d73a-4119-bff4-ab9f9f3b5482","block_type":"box","text":"from 2019 to 2025; Advisor to Finance","page_number":23,"box":{"x":342,"y":646,"width":236,"height":9}},{"id":"2073b739-d8fa-41fd-8b5f-bf2a559b5548","block_type":"box","text":"Committee, Altman Foundation from 2020 to","page_number":23,"box":{"x":343,"y":658,"width":271,"height":9}},{"id":"b6158ddf-1993-41b1-bd4b-f2c8b94ba7ae","block_type":"box","text":"2024; Investment Committee Member,","page_number":23,"box":{"x":343,"y":670,"width":234,"height":9}},{"id":"4e5286aa-8e55-41e7-b853-e0734df81e54","block_type":"box","text":"Tostan since 2021; Member of the","page_number":23,"box":{"x":342,"y":682,"width":210,"height":9}},{"id":"a0230800-729a-41d5-9e72-e2ff06fefd98","block_type":"box","text":"President’s Counsel, Commonfund since","page_number":23,"box":{"x":343,"y":694,"width":245,"height":9}},{"id":"7d0787de-fcdd-4b85-b1f9-c5f549509181","block_type":"box","text":"2023.","page_number":23,"box":{"x":343,"y":706,"width":36,"height":8}},{"id":"0dfd6207-ab2f-40b3-800f-553db5846d5f","block_type":"box","text":"26 RICs consisting of","page_number":23,"box":{"x":627,"y":418,"width":129,"height":11}},{"id":"105f55fa-09e4-4e29-b3ed-e980ef45511f","block_type":"box","text":"170 Portfolios","page_number":23,"box":{"x":627,"y":430,"width":85,"height":9}},{"id":"ac041f90-b1cf-47c6-82bf-4e5785cc5238","block_type":"box","text":"None","page_number":23,"box":{"x":774,"y":419,"width":30,"height":8}},{"id":"2d59b5b2-b7ae-4208-a9a4-0809760da474","block_type":"box","text":"Collette Chilton","page_number":23,"box":{"x":69,"y":723,"width":90,"height":8}},{"id":"888c91a6-b324-4e9c-a47b-66dc2f2aa6d1","block_type":"box","text":"1958","page_number":23,"box":{"x":69,"y":739,"width":33,"height":8}},{"id":"6a970512-6139-4e58-b04d-31658a1c36a0","block_type":"box","text":"Trustee","page_number":23,"box":{"x":235,"y":724,"width":45,"height":7}},{"id":"344256dc-1e5a-4c7d-8516-f05482917fd6","block_type":"box","text":"(Since 2019)","page_number":23,"box":{"x":235,"y":735,"width":78,"height":10}},{"id":"676f3992-7517-4e03-8c0d-3019e0d22b71","block_type":"box","text":"Trustee, UC Berkeley Foundation Board since","page_number":23,"box":{"x":342,"y":723,"width":273,"height":10}},{"id":"fce2ec20-8932-4308-9a24-a5f3fd6cdd0e","block_type":"box","text":"2024; Committee member, Oxford University","page_number":23,"box":{"x":343,"y":735,"width":269,"height":10}},{"id":"756851d3-7fe9-4324-8b88-434d287497fb","block_type":"box","text":"Endowment Management since 2024;","page_number":23,"box":{"x":343,"y":747,"width":230,"height":10}},{"id":"bbe4a182-2967-48ff-b8d8-1f9e58fe387b","block_type":"box","text":"Senior advisor, Insignia since 2024; Chief","page_number":23,"box":{"x":343,"y":759,"width":252,"height":10}},{"id":"c5984d55-4425-444c-9088-1229d6ad0eb5","block_type":"box","text":"Investment Officer, Williams College from","page_number":23,"box":{"x":343,"y":771,"width":247,"height":10}},{"id":"2b2bd0c1-82f1-4f84-bdb4-69f5e1cd64b6","block_type":"box","text":"2006 to 2023; Chief Investment Officer,","page_number":23,"box":{"x":343,"y":783,"width":242,"height":10}},{"id":"1c401639-07c1-4e1d-9215-49d731ec304e","block_type":"box","text":"Lucent Asset Management Corporation from","page_number":23,"box":{"x":343,"y":795,"width":266,"height":10}},{"id":"7b7165c8-5fca-4a71-9407-4648353b7639","block_type":"box","text":"1998 to 2006; Director, Boys and Girls Club","page_number":23,"box":{"x":343,"y":807,"width":266,"height":10}},{"id":"43065321-8b79-42f5-95f6-6738b564b5f4","block_type":"box","text":"of Boston since 2017; Director, B1 Capital","page_number":23,"box":{"x":343,"y":819,"width":255,"height":10}},{"id":"5231cb98-cdd6-4bac-b86e-d630e0e334ae","block_type":"box","text":"since 2018.","page_number":23,"box":{"x":343,"y":831,"width":72,"height":8}},{"id":"3bc669ca-90e1-42b7-a645-79d1f329648a","block_type":"box","text":"26 RICs consisting of","page_number":23,"box":{"x":627,"y":723,"width":129,"height":11}},{"id":"01eb63e6-3477-44fc-9485-2da9a92d59c8","block_type":"box","text":"170 Portfolios","page_number":23,"box":{"x":627,"y":735,"width":85,"height":8}},{"id":"32e593bd-f0f9-468d-8c9a-2d4275bb95d8","block_type":"box","text":"None","page_number":23,"box":{"x":774,"y":724,"width":30,"height":7}},{"id":"ed537899-f2e8-4e9a-9d8b-ed38de7d8d04","block_type":"box","text":"I-14","page_number":23,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"9054ba44-b67f-4668-86a4-b2b0903473b6","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":23,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6d6a2804-2b50-48a7-a058-d7dafc8c9ae1","block_type":"box","text":"Name","page_number":24,"box":{"x":131,"y":150,"width":32,"height":7}},{"id":"b1af8e29-a264-4c37-a3f6-13f5f05606dc","block_type":"box","text":"and Year of Birth","page_number":24,"box":{"x":93,"y":160,"width":97,"height":7}},{"id":"b353c062-deca-489b-8bc1-fb6a4f26ba0a","block_type":"box","text":"1,2","page_number":24,"box":{"x":191,"y":160,"width":9,"height":4}},{"id":"b4d81631-26b7-4c4a-8eb2-80ebd64a3827","block_type":"box","text":"Position(s)","page_number":24,"box":{"x":252,"y":130,"width":62,"height":8}},{"id":"111206ec-6534-4298-b0bf-f29b853951c5","block_type":"box","text":"Held","page_number":24,"box":{"x":271,"y":140,"width":25,"height":7}},{"id":"70877396-971c-4782-a601-cb50a0568734","block_type":"box","text":"(Length of","page_number":24,"box":{"x":254,"y":150,"width":60,"height":9}},{"id":"7afaacba-e919-4f16-90b4-2e4d2ba3c7b5","block_type":"box","text":"Service)","page_number":24,"box":{"x":257,"y":160,"width":48,"height":9}},{"id":"328c338d-3433-4b79-b0f7-4c9155492c47","block_type":"box","text":"3","page_number":24,"box":{"x":306,"y":160,"width":3,"height":3}},{"id":"b91d7b05-7b74-432b-a163-37cee41057b6","block_type":"box","text":"Principal Occupation(s)","page_number":24,"box":{"x":411,"y":150,"width":136,"height":9}},{"id":"74407098-39a4-4657-925a-abed0c098bed","block_type":"box","text":"During Past Five Years","page_number":24,"box":{"x":414,"y":160,"width":130,"height":9}},{"id":"e4f57c04-59d9-4de7-acd6-2a2ba80c7922","block_type":"box","text":"Number of","page_number":24,"box":{"x":665,"y":49,"width":59,"height":7}},{"id":"3d0047e6-3865-4a66-8b22-da8933a1c936","block_type":"box","text":"BlackRock","page_number":24,"box":{"x":662,"y":59,"width":66,"height":7}},{"id":"16b9fa9e-5a7f-45a6-b1a1-11a72e5c7bcd","block_type":"box","text":"Advised","page_number":24,"box":{"x":672,"y":69,"width":45,"height":7}},{"id":"3691fc20-92e3-4e18-b6a3-cc117daf3c73","block_type":"box","text":"Registered","page_number":24,"box":{"x":663,"y":79,"width":62,"height":9}},{"id":"2ba027a2-648d-46d6-a339-87a3a2f70bae","block_type":"box","text":"Investment","page_number":24,"box":{"x":662,"y":89,"width":65,"height":7}},{"id":"a2950001-533e-4b1c-a293-81b00080a374","block_type":"box","text":"Companies","page_number":24,"box":{"x":663,"y":99,"width":63,"height":9}},{"id":"f1bcb53b-b10a-454e-bd96-e4251c53af93","block_type":"box","text":"(“RICs”)","page_number":24,"box":{"x":670,"y":109,"width":48,"height":9}},{"id":"b4c10337-1d62-4723-981c-528c0263310f","block_type":"box","text":"Consisting of","page_number":24,"box":{"x":656,"y":120,"width":77,"height":8}},{"id":"f54d8eb9-b867-455e-b081-97d4276f4232","block_type":"box","text":"Investment","page_number":24,"box":{"x":662,"y":130,"width":65,"height":7}},{"id":"630022eb-31d5-42a3-b781-b56b90156d48","block_type":"box","text":"Portfolios","page_number":24,"box":{"x":667,"y":140,"width":55,"height":7}},{"id":"38655108-b2de-4432-8c16-7ec91f2d1d29","block_type":"box","text":"(“Portfolios”)","page_number":24,"box":{"x":655,"y":150,"width":78,"height":9}},{"id":"63f72d3d-0be8-4035-9915-23731ebea987","block_type":"box","text":"Overseen","page_number":24,"box":{"x":668,"y":160,"width":53,"height":7}},{"id":"601619ac-3b58-424a-b522-8f6cf085f965","block_type":"box","text":"Public","page_number":24,"box":{"x":824,"y":89,"width":35,"height":7}},{"id":"ada11ac9-dd41-4a0a-afc7-675ae6dfabf3","block_type":"box","text":"Company","page_number":24,"box":{"x":815,"y":99,"width":53,"height":9}},{"id":"7a829797-6eb5-475f-92b4-22b005e3fa3b","block_type":"box","text":"and Other","page_number":24,"box":{"x":813,"y":109,"width":57,"height":8}},{"id":"2175226e-0076-442e-a660-0bc61d02c297","block_type":"box","text":"Investment","page_number":24,"box":{"x":809,"y":120,"width":64,"height":7}},{"id":"7fa08e71-170e-4561-beeb-320e8c8ee866","block_type":"box","text":"Company","page_number":24,"box":{"x":815,"y":130,"width":53,"height":8}},{"id":"89efdd7b-345a-4b1e-8cad-98c0eb0ab773","block_type":"box","text":"Directorships","page_number":24,"box":{"x":803,"y":140,"width":77,"height":8}},{"id":"5ce5bf95-74dc-4a60-afb0-e5b083a0591b","block_type":"box","text":"Held During","page_number":24,"box":{"x":808,"y":150,"width":67,"height":9}},{"id":"627d94d4-4082-4de8-9011-e9eacdc803d1","block_type":"box","text":"Past Five Years","page_number":24,"box":{"x":797,"y":160,"width":88,"height":7}},{"id":"a87ea192-a7b1-45a0-9ae8-b48682dc13b8","block_type":"box","text":"Neil A. Cotty","page_number":24,"box":{"x":69,"y":174,"width":73,"height":10}},{"id":"4a2394ca-5eee-4706-a0c0-18b70f0c71b0","block_type":"box","text":"1954","page_number":24,"box":{"x":69,"y":190,"width":33,"height":8}},{"id":"8e6b27b3-3495-4761-9a01-986f07ad8dc3","block_type":"box","text":"Trustee","page_number":24,"box":{"x":235,"y":174,"width":45,"height":8}},{"id":"81abbaa8-16c6-470f-9d7c-376cfb4bf273","block_type":"box","text":"(Since 2019)","page_number":24,"box":{"x":235,"y":186,"width":78,"height":10}},{"id":"5acca424-3f3c-4602-a033-0d227bf338fc","block_type":"box","text":"Bank of America Corporation from 1996 to","page_number":24,"box":{"x":343,"y":174,"width":256,"height":10}},{"id":"c3688c2a-7199-4700-8206-19723bf931f6","block_type":"box","text":"2015, serving in various senior finance","page_number":24,"box":{"x":343,"y":186,"width":235,"height":10}},{"id":"aa6bc5b9-0279-4f32-9895-e138d69e8a15","block_type":"box","text":"leadership roles, including Chief Accounting","page_number":24,"box":{"x":343,"y":198,"width":261,"height":10}},{"id":"71ca8866-bc5e-4b2b-900b-bb2961727ea2","block_type":"box","text":"Officer from 2009 to 2015, Chief Financial","page_number":24,"box":{"x":343,"y":210,"width":256,"height":9}},{"id":"2e45649f-7cab-4bf2-a3a8-60f61db95b83","block_type":"box","text":"Officer of Global Banking, Markets and","page_number":24,"box":{"x":343,"y":222,"width":232,"height":10}},{"id":"c5ad74bb-4496-4f7c-b0ba-e107c77e4d78","block_type":"box","text":"Wealth Management from 2008 to 2009,","page_number":24,"box":{"x":342,"y":234,"width":251,"height":10}},{"id":"a1b9a52c-b1fb-4b93-a58b-15ff7fbd2b59","block_type":"box","text":"Chief Accounting Officer from 2004 to 2008,","page_number":24,"box":{"x":343,"y":246,"width":269,"height":10}},{"id":"fd413511-934c-4869-a2b8-e749e3c34d9f","block_type":"box","text":"Chief Financial Officer of Consumer Bank","page_number":24,"box":{"x":343,"y":258,"width":247,"height":8}},{"id":"87236dae-e678-4491-aa15-ab0133017a8c","block_type":"box","text":"from 2003 to 2004, Chief Financial Officer of","page_number":24,"box":{"x":342,"y":270,"width":274,"height":9}},{"id":"28715373-2e2e-4003-8c79-1899ffb217f4","block_type":"box","text":"Global Corporate Investment Bank from","page_number":24,"box":{"x":343,"y":282,"width":237,"height":10}},{"id":"b4baa3a5-cfc1-421a-82fd-55fa63b50fa7","block_type":"box","text":"1999 to 2002.","page_number":24,"box":{"x":343,"y":294,"width":89,"height":8}},{"id":"190b3ba0-d526-44b0-9969-a896e2d26136","block_type":"box","text":"26 RICs consisting of","page_number":24,"box":{"x":627,"y":174,"width":129,"height":10}},{"id":"52c6355a-080a-4a62-9222-ca1c1c8421b7","block_type":"box","text":"170 Portfolios","page_number":24,"box":{"x":627,"y":186,"width":85,"height":8}},{"id":"a909d71e-5557-483f-9585-fa781d5ab2f1","block_type":"box","text":"None","page_number":24,"box":{"x":774,"y":174,"width":30,"height":8}},{"id":"ccaf96e4-cc64-4cb0-a3d1-2cf00f3edec3","block_type":"box","text":"Jeffrey Jarczyk4","page_number":24,"box":{"x":69,"y":311,"width":86,"height":10}},{"id":"555d9afd-6813-4b16-bac9-ee3fdb76ba89","block_type":"box","text":"k4","page_number":24,"box":{"x":155,"y":311,"width":4,"height":4}},{"id":"f380a4bc-357b-4561-83f7-96a8c0beb9dd","block_type":"box","text":"1964","page_number":24,"box":{"x":69,"y":327,"width":33,"height":8}},{"id":"5ae6d162-0acd-458b-ac2b-2a13c705515a","block_type":"box","text":"Trustee","page_number":24,"box":{"x":235,"y":312,"width":45,"height":7}},{"id":"40e39853-2d42-4589-80ea-0412cc93bae3","block_type":"box","text":"(Since 2026)","page_number":24,"box":{"x":235,"y":323,"width":78,"height":10}},{"id":"5dc6309b-7bc5-45c1-8488-781c47c4deb3","block_type":"box","text":"Director, The Friends of the Public Garden","page_number":24,"box":{"x":343,"y":311,"width":249,"height":10}},{"id":"1df2520f-4537-4aa2-b515-5ea019dfdb99","block_type":"box","text":"since 2021; Executive Vice President, Chief","page_number":24,"box":{"x":343,"y":323,"width":263,"height":10}},{"id":"a14fafc9-4ed9-469d-8d78-607fd6c848d5","block_type":"box","text":"Auditor, Fidelity Investments from 2016 to","page_number":24,"box":{"x":342,"y":335,"width":253,"height":10}},{"id":"e32f9e91-dcb0-4ff4-97eb-a4efbac8794b","block_type":"box","text":"2021; Executive Vice President, Chief","page_number":24,"box":{"x":343,"y":347,"width":227,"height":10}},{"id":"4bb6ebd5-744b-44b5-8e3a-786497eaf8b2","block_type":"box","text":"Accounting Officer, Fidelity Investments from","page_number":24,"box":{"x":342,"y":359,"width":267,"height":10}},{"id":"5d6eabec-b6e9-4e2c-9d63-b96014d6f985","block_type":"box","text":"2007 to 2016.","page_number":24,"box":{"x":343,"y":371,"width":89,"height":8}},{"id":"20cccfbd-44c1-4039-ab6c-100efd0bec07","block_type":"box","text":"26 RICs consisting of","page_number":24,"box":{"x":627,"y":311,"width":129,"height":11}},{"id":"948dbd72-aa60-4b0e-8e2c-2124cc5acf51","block_type":"box","text":"170 Portfolios","page_number":24,"box":{"x":627,"y":323,"width":85,"height":8}},{"id":"64399df7-f8a7-4aed-9841-240646442fb0","block_type":"box","text":"None","page_number":24,"box":{"x":774,"y":312,"width":30,"height":7}},{"id":"cbdd3763-ae37-4a34-b4b5-d194633b2e8c","block_type":"box","text":"Henry R. Keizer","page_number":24,"box":{"x":69,"y":389,"width":93,"height":10}},{"id":"92504edf-127c-4bc1-81e4-b74f1f078853","block_type":"box","text":"1956","page_number":24,"box":{"x":69,"y":405,"width":33,"height":8}},{"id":"464be33f-0c9f-45f8-857b-4a92f9654c3d","block_type":"box","text":"Trustee","page_number":24,"box":{"x":235,"y":389,"width":45,"height":8}},{"id":"9d649501-e41f-45ec-a2b0-18734685cde8","block_type":"box","text":"(Since 2016)","page_number":24,"box":{"x":235,"y":401,"width":78,"height":10}},{"id":"0b8141be-6245-4fc4-be64-a2c66f73c638","block_type":"box","text":"Director, Park Indemnity Ltd. (captive insurer)","page_number":24,"box":{"x":343,"y":389,"width":269,"height":10}},{"id":"9a8acbed-f1d4-4c1b-9961-04d2bf22ae3c","block_type":"box","text":"from 2010 to 2022.","page_number":24,"box":{"x":342,"y":401,"width":122,"height":8}},{"id":"4db60c8d-a088-45d3-8446-2d2e24bd8d55","block_type":"box","text":"26 RICs consisting of","page_number":24,"box":{"x":627,"y":389,"width":129,"height":10}},{"id":"42463e0c-5944-4c9f-876e-ee7867aad8b9","block_type":"box","text":"170 Portfolios","page_number":24,"box":{"x":627,"y":401,"width":85,"height":8}},{"id":"f8d0834a-da8e-494f-9ad1-9482870a6995","block_type":"box","text":"GrafTech International","page_number":24,"box":{"x":773,"y":389,"width":131,"height":8}},{"id":"1987876c-12e8-4fee-95d7-a13f40bc52a7","block_type":"box","text":"Ltd. (materials","page_number":24,"box":{"x":774,"y":401,"width":85,"height":10}},{"id":"534517b9-fc05-45ef-823f-e5672fdb39e3","block_type":"box","text":"manufacturing);","page_number":24,"box":{"x":774,"y":413,"width":92,"height":10}},{"id":"580e6d86-c25d-47f7-a9ad-5c8c995c547b","block_type":"box","text":"Sealed Air Corp.","page_number":24,"box":{"x":773,"y":425,"width":96,"height":10}},{"id":"b076239d-dc65-4c09-9a05-7e5ab9b8f61c","block_type":"box","text":"(packaging); Hertz","page_number":24,"box":{"x":773,"y":437,"width":109,"height":10}},{"id":"37d41b44-9622-4ec4-944b-c400cb7491a6","block_type":"box","text":"Global Holdings (car","page_number":24,"box":{"x":773,"y":449,"width":121,"height":10}},{"id":"52f674c2-526a-4704-9670-d44c8a31193b","block_type":"box","text":"rental) from 2015 to","page_number":24,"box":{"x":774,"y":461,"width":122,"height":10}},{"id":"765d7b18-655a-4033-b3a1-9efe86cc2c57","block_type":"box","text":"2021.","page_number":24,"box":{"x":773,"y":473,"width":36,"height":8}},{"id":"9eb11da9-40ac-4ee2-96b9-efdfa72f7efb","block_type":"box","text":"Cynthia A. Montgomery","page_number":24,"box":{"x":69,"y":490,"width":140,"height":10}},{"id":"833e5672-7b0e-4c75-ac82-60fb697b7520","block_type":"box","text":"1952","page_number":24,"box":{"x":69,"y":506,"width":32,"height":8}},{"id":"5dec736b-24ca-432e-bd93-c8ef5c8cfd69","block_type":"box","text":"Trustee","page_number":24,"box":{"x":235,"y":490,"width":45,"height":8}},{"id":"8f673630-468c-4253-ac29-23433f090940","block_type":"box","text":"(Since 2019)","page_number":24,"box":{"x":235,"y":502,"width":78,"height":10}},{"id":"8eb23d85-a7f1-43c9-965e-888a59bfc48e","block_type":"box","text":"Professor, Harvard Business School since","page_number":24,"box":{"x":343,"y":490,"width":253,"height":10}},{"id":"b10b96fa-caa7-4ff5-b19d-0d19f23b080e","block_type":"box","text":"1989.","page_number":24,"box":{"x":343,"y":502,"width":36,"height":8}},{"id":"0e0874d2-49c5-4558-b1af-3865cf80110a","block_type":"box","text":"26 RICs consisting of","page_number":24,"box":{"x":627,"y":490,"width":129,"height":10}},{"id":"e79ba19d-5839-435e-8525-ba48c0d7fdbc","block_type":"box","text":"170 Portfolios","page_number":24,"box":{"x":627,"y":502,"width":85,"height":8}},{"id":"9a1cdc90-233d-4975-8de8-8dae45652716","block_type":"box","text":"None","page_number":24,"box":{"x":774,"y":490,"width":30,"height":8}},{"id":"e3f648b4-1975-414d-8493-b961b0a11e71","block_type":"box","text":"Donald C. Opatrny","page_number":24,"box":{"x":70,"y":524,"width":108,"height":10}},{"id":"3791e4b0-540a-4e4a-84b4-a832dfba08ec","block_type":"box","text":"1952","page_number":24,"box":{"x":69,"y":539,"width":32,"height":8}},{"id":"330f7961-5246-45bf-8440-3da14ba8715b","block_type":"box","text":"Trustee","page_number":24,"box":{"x":235,"y":524,"width":45,"height":8}},{"id":"1cc03061-6db6-4c3e-9ff9-74a6f5b6281b","block_type":"box","text":"(Since 2015)","page_number":24,"box":{"x":235,"y":536,"width":78,"height":10}},{"id":"1010b7ec-1403-4c28-962a-2669780b75f0","block_type":"box","text":"Chair of the Board of Phoenix Art Museum","page_number":24,"box":{"x":343,"y":524,"width":253,"height":8}},{"id":"007f6e92-f0b0-4db0-9c44-32bd96fa1ecd","block_type":"box","text":"since 2022 and Trustee thereof since 2018;","page_number":24,"box":{"x":343,"y":536,"width":268,"height":9}},{"id":"4ee66583-2926-46b5-84de-cbe12a508823","block_type":"box","text":"Chair of the Investment Committee of The","page_number":24,"box":{"x":343,"y":548,"width":251,"height":8}},{"id":"32db9ffa-5c35-4ea7-a676-d9553fd01c06","block_type":"box","text":"Arizona Community Foundation since 2022","page_number":24,"box":{"x":342,"y":560,"width":259,"height":10}},{"id":"2a86a320-7acd-424d-b052-a54cf73c714a","block_type":"box","text":"and Trustee thereof since 2020; Director,","page_number":24,"box":{"x":343,"y":571,"width":249,"height":10}},{"id":"ae78f45c-542f-4278-b77b-26dff65af44d","block_type":"box","text":"Athena Capital Advisors LLC (investment","page_number":24,"box":{"x":342,"y":584,"width":244,"height":9}},{"id":"39cfc156-b6b7-4f4d-8bd8-c5b64c5f88cf","block_type":"box","text":"management firm) from 2013 to 2020;","page_number":24,"box":{"x":343,"y":595,"width":236,"height":11}},{"id":"f94a4533-9638-4e78-b146-622082601806","block_type":"box","text":"Trustee, Vice Chair, Member of the Executive","page_number":24,"box":{"x":342,"y":607,"width":270,"height":10}},{"id":"6cfbacd8-994b-454f-a20e-cf25a4ab924f","block_type":"box","text":"Committee and Chair of the Investment","page_number":24,"box":{"x":343,"y":619,"width":237,"height":8}},{"id":"1e608d3e-541e-4eac-a6ce-f9b8374a4b54","block_type":"box","text":"Committee, Cornell University from 2004 to","page_number":24,"box":{"x":343,"y":631,"width":262,"height":10}},{"id":"aba82a1f-e780-4665-a932-a79d1c389cec","block_type":"box","text":"2019; Member of Affordable Housing Supply","page_number":24,"box":{"x":343,"y":643,"width":270,"height":10}},{"id":"8b0ebf2a-d943-406b-b8a2-bcd007071dc4","block_type":"box","text":"Board of Jackson, Wyoming from 2017 to","page_number":24,"box":{"x":343,"y":655,"width":251,"height":10}},{"id":"365803bc-ee21-49fc-80d0-1f7f76179346","block_type":"box","text":"2022; Member, Investment Funds","page_number":24,"box":{"x":343,"y":667,"width":205,"height":10}},{"id":"3c905c4d-1317-4160-8a28-853c0e6aef35","block_type":"box","text":"Committee, State of Wyoming from 2017 to","page_number":24,"box":{"x":343,"y":679,"width":264,"height":10}},{"id":"2b712460-7e45-49ad-99c3-c13a0c9af57e","block_type":"box","text":"2023; Member of the Investment","page_number":24,"box":{"x":343,"y":691,"width":201,"height":10}},{"id":"43cbb719-7d5a-48e1-ad99-004c1198988b","block_type":"box","text":"Committee, Mellon Foundation from 2009 to","page_number":24,"box":{"x":343,"y":703,"width":269,"height":10}},{"id":"7ee53dc3-88fd-41c4-a175-a3503057e8ef","block_type":"box","text":"2015; President, Trustee and Member of the","page_number":24,"box":{"x":343,"y":715,"width":270,"height":10}},{"id":"5a823610-0c4b-46b2-963e-6e4922655310","block_type":"box","text":"Investment Committee, The Aldrich","page_number":24,"box":{"x":343,"y":727,"width":210,"height":10}},{"id":"c6a8964d-a1ec-4c13-a92d-a3a9436dfb89","block_type":"box","text":"Contemporary Art Museum from 2007 to","page_number":24,"box":{"x":343,"y":739,"width":248,"height":10}},{"id":"d15534a9-9731-4dcb-a7d9-965937216e30","block_type":"box","text":"2014; Trustee and Chair of the Investment","page_number":24,"box":{"x":343,"y":751,"width":258,"height":9}},{"id":"21b858e5-4954-4444-8389-039676410be8","block_type":"box","text":"Committee, Community Foundation of","page_number":24,"box":{"x":343,"y":763,"width":228,"height":10}},{"id":"88d54737-4a4b-43ff-99d2-4d3056435dfc","block_type":"box","text":"Jackson Hole since 2014.","page_number":24,"box":{"x":342,"y":775,"width":157,"height":8}},{"id":"e2135220-ed73-40a8-b733-885a684748d0","block_type":"box","text":"26 RICs consisting of","page_number":24,"box":{"x":627,"y":524,"width":129,"height":10}},{"id":"13969c58-a0a8-4d13-aa45-50b3d8c28862","block_type":"box","text":"170 Portfolios","page_number":24,"box":{"x":627,"y":536,"width":85,"height":8}},{"id":"a206ad2d-ffc6-434b-9965-e11c3e87530e","block_type":"box","text":"None","page_number":24,"box":{"x":774,"y":524,"width":30,"height":8}},{"id":"7b654520-c749-47ff-b816-cf43491d0ba5","block_type":"box","text":"Lori Richards","page_number":24,"box":{"x":69,"y":793,"width":78,"height":8}},{"id":"d74fc6de-156f-45a1-a951-a3fdc3007eae","block_type":"box","text":"1960","page_number":24,"box":{"x":69,"y":808,"width":33,"height":8}},{"id":"ff08ce0f-636f-493c-bad5-9e458b5ad0b3","block_type":"box","text":"Trustee","page_number":24,"box":{"x":235,"y":793,"width":45,"height":8}},{"id":"05411371-fbeb-4f58-a0af-1f3c709d944f","block_type":"box","text":"(Since 2024)","page_number":24,"box":{"x":235,"y":805,"width":78,"height":10}},{"id":"aa032363-143b-4a42-840b-f3e5e5640755","block_type":"box","text":"President and Trustee, SEC Historical Society","page_number":24,"box":{"x":343,"y":793,"width":273,"height":10}},{"id":"a9f42016-57c2-4d58-a019-7793a1afc158","block_type":"box","text":"since 2018; Trustee, Garrett College","page_number":24,"box":{"x":343,"y":805,"width":220,"height":10}},{"id":"938fa2d2-be39-400a-b5f2-d05e0c96e99e","block_type":"box","text":"Foundation since 2019; Member, Vice-Chair","page_number":24,"box":{"x":343,"y":817,"width":264,"height":9}},{"id":"7424695b-a58e-4b02-b498-60ec727f0980","block_type":"box","text":"or Chair of FINRA National Adjudicatory","page_number":24,"box":{"x":343,"y":828,"width":233,"height":11}},{"id":"aa13f54a-9f80-4a54-93c8-1a6a50dec52d","block_type":"box","text":"Council from 2019 to 2022; Director,","page_number":24,"box":{"x":343,"y":840,"width":223,"height":10}},{"id":"b404b5a0-e7d1-4583-9b6e-ac1c9bcbde00","block_type":"box","text":"PharmaCann, Inc. from 2021 to 2024;","page_number":24,"box":{"x":343,"y":852,"width":232,"height":10}},{"id":"9b9a0c21-1504-4492-8e5a-e6287a61030b","block_type":"box","text":"Director, Wahed Invest from 2022 to 2024.","page_number":24,"box":{"x":343,"y":864,"width":260,"height":10}},{"id":"4144e626-cf98-4501-b6ab-f1ec10b3be68","block_type":"box","text":"26 RICs consisting of","page_number":24,"box":{"x":627,"y":793,"width":129,"height":10}},{"id":"4551c004-9848-4550-a5e9-17e3e8d86951","block_type":"box","text":"170 Portfolios","page_number":24,"box":{"x":627,"y":805,"width":85,"height":8}},{"id":"dd640dc7-49e2-4d20-b412-e323f1f59303","block_type":"box","text":"None","page_number":24,"box":{"x":774,"y":793,"width":30,"height":8}},{"id":"c5fb9c14-7ec2-468f-8f1f-c163028d83ac","block_type":"box","text":"Marc D. Stern","page_number":24,"box":{"x":69,"y":882,"width":83,"height":8}},{"id":"2aa2eda5-f5e2-42b7-b701-3903939242d8","block_type":"box","text":"4","page_number":24,"box":{"x":153,"y":882,"width":4,"height":4}},{"id":"8a794b84-277b-4201-8f28-37c5009da132","block_type":"box","text":"1962","page_number":24,"box":{"x":69,"y":898,"width":32,"height":8}},{"id":"ea10cd13-38cd-4294-9339-1861884a86bd","block_type":"box","text":"Trustee","page_number":24,"box":{"x":235,"y":882,"width":45,"height":8}},{"id":"7453d1ac-4eb7-407a-8c43-d4d5d9562f04","block_type":"box","text":"(Since 2026)","page_number":24,"box":{"x":235,"y":894,"width":78,"height":10}},{"id":"692091eb-fe12-414e-acf0-5bb51030b4e9","block_type":"box","text":"Chief Executive Officer and Director,","page_number":24,"box":{"x":343,"y":882,"width":214,"height":10}},{"id":"b9e01be4-22b2-4e3d-8e28-716e881631af","block_type":"box","text":"Bessemer Trust from 2013 to 2026.","page_number":24,"box":{"x":343,"y":894,"width":221,"height":8}},{"id":"41df7b97-5fc1-4295-a73a-55c962a008ad","block_type":"box","text":"26 RICs consisting of","page_number":24,"box":{"x":627,"y":882,"width":129,"height":10}},{"id":"c29d262b-3e05-47ff-a3e6-aaaacda7ca33","block_type":"box","text":"170 Portfolios","page_number":24,"box":{"x":627,"y":894,"width":85,"height":8}},{"id":"f1909624-eeab-4cb5-8ace-a09c2fdc045d","block_type":"box","text":"None","page_number":24,"box":{"x":774,"y":882,"width":30,"height":8}},{"id":"f965f513-716d-41f6-a478-2575b7997cde","block_type":"box","text":"I-15","page_number":24,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"ac230a01-f8da-4fbb-8dc9-772f75838c60","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":24,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"48831004-6524-4d7a-b0b3-b20ea30cb6d3","block_type":"box","text":"Name","page_number":25,"box":{"x":131,"y":150,"width":32,"height":7}},{"id":"d967b1cb-6b6f-43ce-beb1-4fc0ba7631b8","block_type":"box","text":"and Year of Birth","page_number":25,"box":{"x":93,"y":160,"width":97,"height":7}},{"id":"2711029c-0408-4e4e-8ff2-c953aba603bb","block_type":"box","text":"1,2","page_number":25,"box":{"x":191,"y":160,"width":9,"height":4}},{"id":"833b043f-41b5-444a-b1cc-2c95ef963684","block_type":"box","text":"Position(s)","page_number":25,"box":{"x":252,"y":130,"width":62,"height":8}},{"id":"14d4d140-4e1c-42b7-b0a8-503057f4eb33","block_type":"box","text":"Held","page_number":25,"box":{"x":271,"y":140,"width":25,"height":7}},{"id":"31271cf6-da21-4eee-96d8-23aa2ecb9acb","block_type":"box","text":"(Length of","page_number":25,"box":{"x":254,"y":150,"width":60,"height":9}},{"id":"e9b94f74-4753-4801-a599-bcca53eb1abb","block_type":"box","text":"Service)","page_number":25,"box":{"x":257,"y":160,"width":48,"height":9}},{"id":"d2142a49-2acb-4b2a-81eb-d33e189d4915","block_type":"box","text":"3","page_number":25,"box":{"x":306,"y":160,"width":3,"height":3}},{"id":"c0fda23e-50bc-453e-9ba7-9c7baa691b05","block_type":"box","text":"Principal Occupation(s)","page_number":25,"box":{"x":411,"y":150,"width":136,"height":9}},{"id":"96c87d1f-3c31-4a9f-8c75-6a626b800985","block_type":"box","text":"During Past Five Years","page_number":25,"box":{"x":414,"y":160,"width":130,"height":9}},{"id":"36332495-ef3e-4bf0-b83d-45a6c40d037c","block_type":"box","text":"Number of","page_number":25,"box":{"x":665,"y":49,"width":59,"height":7}},{"id":"b5d9573f-eff6-4703-835d-317cfcf08e30","block_type":"box","text":"BlackRock","page_number":25,"box":{"x":662,"y":59,"width":66,"height":7}},{"id":"885664e0-e908-411a-9265-202d4bcf5bdf","block_type":"box","text":"Advised","page_number":25,"box":{"x":672,"y":69,"width":45,"height":7}},{"id":"88cee826-8c47-411d-88a6-e1dde6254d85","block_type":"box","text":"Registered","page_number":25,"box":{"x":663,"y":79,"width":62,"height":9}},{"id":"b530b389-1d7b-4b30-b6f0-d61d6256151a","block_type":"box","text":"Investment","page_number":25,"box":{"x":662,"y":89,"width":65,"height":7}},{"id":"f421bc4d-d9dc-4721-bc9e-416446c11b27","block_type":"box","text":"Companies","page_number":25,"box":{"x":663,"y":99,"width":63,"height":9}},{"id":"a8fc6afb-c281-4b3b-b93f-6277506657dd","block_type":"box","text":"(“RICs”)","page_number":25,"box":{"x":670,"y":109,"width":48,"height":9}},{"id":"9c4747a4-1800-4040-927e-807ad02f8d7e","block_type":"box","text":"Consisting of","page_number":25,"box":{"x":656,"y":120,"width":77,"height":8}},{"id":"b82797a0-0804-4817-8fbf-cf832cc3919d","block_type":"box","text":"Investment","page_number":25,"box":{"x":662,"y":130,"width":65,"height":7}},{"id":"12411e97-3212-4ede-bc9d-474345f0e40b","block_type":"box","text":"Portfolios","page_number":25,"box":{"x":667,"y":140,"width":55,"height":7}},{"id":"cc020463-8343-4e3d-9eda-cc13e288ef28","block_type":"box","text":"(“Portfolios”)","page_number":25,"box":{"x":655,"y":150,"width":78,"height":9}},{"id":"88478948-52d9-4abf-9610-71519bde93e8","block_type":"box","text":"Overseen","page_number":25,"box":{"x":668,"y":160,"width":53,"height":7}},{"id":"af891fac-8dd4-4f34-b735-5b9bf4c83950","block_type":"box","text":"Public","page_number":25,"box":{"x":824,"y":89,"width":35,"height":7}},{"id":"98d93c77-2ab3-4667-954f-a0940c3f0621","block_type":"box","text":"Company","page_number":25,"box":{"x":815,"y":99,"width":53,"height":9}},{"id":"205dca31-19ea-4a16-b9af-808481c5be3c","block_type":"box","text":"and Other","page_number":25,"box":{"x":813,"y":109,"width":57,"height":8}},{"id":"7ddb053f-f450-4ad0-95fb-51cc66dfc0ff","block_type":"box","text":"Investment","page_number":25,"box":{"x":809,"y":120,"width":64,"height":7}},{"id":"d653c79a-785c-4985-a005-c88ec4b9b5b6","block_type":"box","text":"Company","page_number":25,"box":{"x":815,"y":130,"width":53,"height":8}},{"id":"a618c009-1370-4e8e-afbd-6a31417f10bf","block_type":"box","text":"Directorships","page_number":25,"box":{"x":803,"y":140,"width":77,"height":8}},{"id":"a3ded6d0-1b55-43eb-8267-dcfcafcb1297","block_type":"box","text":"Held During","page_number":25,"box":{"x":808,"y":150,"width":67,"height":9}},{"id":"e5438e2b-1932-481b-969b-977995096c0e","block_type":"box","text":"Past Five Years","page_number":25,"box":{"x":797,"y":160,"width":88,"height":7}},{"id":"3d287812-365a-4b17-8cfa-d36eafea809c","block_type":"box","text":"Kenneth L. Urish","page_number":25,"box":{"x":70,"y":174,"width":98,"height":8}},{"id":"cb0f41da-60c9-4513-bf05-139b1c88327c","block_type":"box","text":"1951","page_number":25,"box":{"x":69,"y":190,"width":33,"height":8}},{"id":"86d93079-eecd-41dd-8378-ed047f1198a0","block_type":"box","text":"Trustee","page_number":25,"box":{"x":235,"y":174,"width":45,"height":8}},{"id":"cc4b3f27-4a7c-437d-b624-2ea603d7b32a","block_type":"box","text":"(Since 2019)","page_number":25,"box":{"x":235,"y":186,"width":78,"height":10}},{"id":"595149b1-2548-4eb9-88e4-d50976c70a3f","block_type":"box","text":"Managing Partner, Urish Popeck & Co., LLC","page_number":25,"box":{"x":343,"y":174,"width":261,"height":10}},{"id":"aaebefc0-6239-4b31-8582-bf7ef5d163ce","block_type":"box","text":"(certified public accountants and","page_number":25,"box":{"x":343,"y":186,"width":196,"height":10}},{"id":"c3c8af1b-5366-4b53-b5a0-7444b139eca0","block_type":"box","text":"consultants) since 1976; Past-Chairman of","page_number":25,"box":{"x":343,"y":198,"width":259,"height":10}},{"id":"b463b663-67b9-4b5b-8fda-220f1e070a44","block_type":"box","text":"the Professional Ethics Committee of the","page_number":25,"box":{"x":342,"y":210,"width":247,"height":8}},{"id":"32503675-c76c-40b6-b409-56674498bcc0","block_type":"box","text":"Pennsylvania Institute of Certified Public","page_number":25,"box":{"x":343,"y":222,"width":241,"height":10}},{"id":"789ff4c7-8799-403c-8139-be266863d1e7","block_type":"box","text":"Accountants and Committee Member thereof","page_number":25,"box":{"x":342,"y":234,"width":273,"height":8}},{"id":"549c2010-4046-437b-8366-b00259c6c0cf","block_type":"box","text":"since 2007; Member of External Advisory","page_number":25,"box":{"x":343,"y":246,"width":250,"height":10}},{"id":"a781bcb2-c8f1-43b1-958e-c6dac3246fb4","block_type":"box","text":"Board, The Pennsylvania State University","page_number":25,"box":{"x":343,"y":258,"width":246,"height":10}},{"id":"66238a44-307f-4883-bb6d-c9bf87a4226c","block_type":"box","text":"Accounting Department since 2001,","page_number":25,"box":{"x":342,"y":270,"width":219,"height":10}},{"id":"2617e7ba-2347-4882-b9e3-6c6a32c93b2e","block_type":"box","text":"Emeritus since 2022; Principal, UP Strategic","page_number":25,"box":{"x":343,"y":282,"width":267,"height":10}},{"id":"7562ce93-b591-476f-95ba-8f6c615a90bb","block_type":"box","text":"Wealth Investment Advisors, LLC since","page_number":25,"box":{"x":342,"y":294,"width":233,"height":9}},{"id":"d763d515-2426-4901-959c-e6ce539d9911","block_type":"box","text":"2013; Trustee, The Holy Family Institute from","page_number":25,"box":{"x":343,"y":306,"width":272,"height":10}},{"id":"519491b1-fe35-4feb-938c-00807b5f17fa","block_type":"box","text":"2001 to 2010; President and Trustee,","page_number":25,"box":{"x":343,"y":318,"width":230,"height":9}},{"id":"87be5f65-42d9-4fd6-a31a-f0059ae97720","block_type":"box","text":"Pittsburgh Catholic Publishing Associates","page_number":25,"box":{"x":343,"y":330,"width":248,"height":10}},{"id":"9f36b2af-2309-433d-8b4f-3768b928e12d","block_type":"box","text":"from 2003 to 2008; Director, Inter-Tel from","page_number":25,"box":{"x":342,"y":342,"width":259,"height":9}},{"id":"17879944-5cc1-43e0-a859-f072606af120","block_type":"box","text":"2006 to 2007; Member, Advisory Board,","page_number":25,"box":{"x":343,"y":354,"width":245,"height":10}},{"id":"42ca1ae1-7806-4bfd-9240-e97731a54493","block_type":"box","text":"ESG Competent Boards since 2020.","page_number":25,"box":{"x":343,"y":366,"width":219,"height":9}},{"id":"2c9c9734-9aef-4ffe-a549-fab840314ee7","block_type":"box","text":"26 RICs consisting of","page_number":25,"box":{"x":627,"y":174,"width":129,"height":10}},{"id":"e54c0757-9047-4c52-a7ce-bdc351f65f78","block_type":"box","text":"170 Portfolios","page_number":25,"box":{"x":627,"y":186,"width":85,"height":8}},{"id":"d107ab2d-85f2-4013-b8dd-72529c5cfcb2","block_type":"box","text":"None","page_number":25,"box":{"x":774,"y":174,"width":30,"height":8}},{"id":"8c1bb223-643e-48e7-88ea-04c891967e1a","block_type":"box","text":"Claire A. Walton","page_number":25,"box":{"x":69,"y":383,"width":94,"height":8}},{"id":"fcd14e53-5d48-4d7d-b9f3-892eb94786ed","block_type":"box","text":"1957","page_number":25,"box":{"x":69,"y":399,"width":32,"height":8}},{"id":"b6de9903-d7d4-44ec-a43e-7ccf88c42807","block_type":"box","text":"Trustee","page_number":25,"box":{"x":235,"y":383,"width":45,"height":8}},{"id":"5311649a-08d1-41ab-9e8b-c082281a05ce","block_type":"box","text":"(Since 2019)","page_number":25,"box":{"x":235,"y":395,"width":78,"height":10}},{"id":"e02b65a5-f4a7-4304-89df-c28b94fceab8","block_type":"box","text":"Director/Treasurer, Reading Community Trust","page_number":25,"box":{"x":343,"y":383,"width":273,"height":10}},{"id":"641fdf75-3233-46ce-8258-a61dc0b0b01c","block_type":"box","text":"since 2024; Advisory Board Member,","page_number":25,"box":{"x":343,"y":395,"width":224,"height":10}},{"id":"a386d880-443d-4ee5-b6d0-36a3921b1633","block_type":"box","text":"Grossman School of Business at the","page_number":25,"box":{"x":343,"y":407,"width":221,"height":8}},{"id":"0a691e20-ea7f-47d9-a38e-20707990b4ed","block_type":"box","text":"University of Vermont since 2023; Advisory","page_number":25,"box":{"x":343,"y":419,"width":259,"height":10}},{"id":"bad09ddf-e13d-4cd4-8f92-0444a12b1ed5","block_type":"box","text":"Board Member, Scientific Financial Systems","page_number":25,"box":{"x":343,"y":431,"width":264,"height":10}},{"id":"786abb97-ec81-4568-b393-2b078ce9edb2","block_type":"box","text":"from 2022 to 2025; General Partner of Neon","page_number":25,"box":{"x":342,"y":443,"width":273,"height":9}},{"id":"1c4c1164-cabb-4896-8471-fdbe9f9bec23","block_type":"box","text":"Liberty Capital Management, LLC from 2003","page_number":25,"box":{"x":343,"y":455,"width":269,"height":10}},{"id":"3cbe0531-9e26-4171-959e-e26ffa0e4eb6","block_type":"box","text":"to 2023; Chief Operating Officer and Chief","page_number":25,"box":{"x":342,"y":467,"width":256,"height":10}},{"id":"770cb6a9-65f4-4b8d-ba3b-53fe87beaa1c","block_type":"box","text":"Financial Officer of Liberty Square Asset","page_number":25,"box":{"x":343,"y":479,"width":241,"height":10}},{"id":"894f138a-045e-4e64-9ae1-ef84923f2f43","block_type":"box","text":"Management, LP / Steel Partners Japan","page_number":25,"box":{"x":343,"y":491,"width":242,"height":10}},{"id":"b15bba19-11a0-4e81-b00d-88ddbcaa65b8","block_type":"box","text":"Asset Management, LP from 1998 to 2015;","page_number":25,"box":{"x":342,"y":503,"width":266,"height":10}},{"id":"8925e3f3-e4bf-463b-89e9-bad4b069f4e5","block_type":"box","text":"Director, Boston Hedge Fund Group from","page_number":25,"box":{"x":343,"y":515,"width":244,"height":10}},{"id":"6b0c9153-8eca-4359-a156-e84a36da1191","block_type":"box","text":"2009 to 2018; Director, Massachusetts","page_number":25,"box":{"x":343,"y":527,"width":242,"height":9}},{"id":"8dffcc91-2a2a-483a-b4c3-41713d8def9b","block_type":"box","text":"Council on Economic Education from 2013","page_number":25,"box":{"x":343,"y":539,"width":257,"height":8}},{"id":"458ec44e-d174-416c-a715-34e14871d0d0","block_type":"box","text":"to 2015.","page_number":25,"box":{"x":342,"y":551,"width":53,"height":8}},{"id":"5c93ba44-2cdf-4898-8ef4-4810069ba223","block_type":"box","text":"26 RICs consisting of","page_number":25,"box":{"x":627,"y":383,"width":129,"height":10}},{"id":"3a903024-df54-4b27-9d13-2aa18d13be03","block_type":"box","text":"170 Portfolios","page_number":25,"box":{"x":627,"y":395,"width":85,"height":8}},{"id":"6e5bea7b-86f6-417f-b389-961a339aaf4b","block_type":"box","text":"None","page_number":25,"box":{"x":774,"y":383,"width":30,"height":8}},{"id":"22bf0209-bc8f-4992-b2d5-76132bb75f00","block_type":"box","text":"Interested Trustees","page_number":25,"box":{"x":70,"y":569,"width":124,"height":7}},{"id":"d51fba69-46e5-4812-a8c0-862b5d95d7a3","block_type":"box","text":"5","page_number":25,"box":{"x":194,"y":565,"width":4,"height":4}},{"id":"cb0c56bb-017a-426f-8546-868413990204","block_type":"box","text":"Robert Fairbairn","page_number":25,"box":{"x":69,"y":586,"width":96,"height":8}},{"id":"793682e0-d403-4410-9b9a-113506fa8dd0","block_type":"box","text":"1965","page_number":25,"box":{"x":69,"y":602,"width":33,"height":8}},{"id":"b60b2b99-2493-4478-bf35-fa2ba82ef4eb","block_type":"box","text":"Trustee","page_number":25,"box":{"x":235,"y":586,"width":45,"height":8}},{"id":"811d1ffb-1b23-4114-bf5c-f706f58ecab1","block_type":"box","text":"(Since 2015)","page_number":25,"box":{"x":235,"y":598,"width":78,"height":10}},{"id":"0cdf2d88-7900-4ec7-9613-fe791f54f281","block_type":"box","text":"Vice Chairman of BlackRock, Inc. since","page_number":25,"box":{"x":342,"y":586,"width":235,"height":9}},{"id":"a95e0313-91ce-44e1-b2bc-ccbbe9bf3cf1","block_type":"box","text":"2019; Member of BlackRock’s Global","page_number":25,"box":{"x":343,"y":598,"width":225,"height":9}},{"id":"12c00bf9-14bf-4ffb-b7ee-a5d9b5fefd14","block_type":"box","text":"Operating Committee; Co-Chair of","page_number":25,"box":{"x":343,"y":610,"width":202,"height":10}},{"id":"421bc140-b5c4-4292-9030-49cddd2e9bbf","block_type":"box","text":"BlackRock’s Human Capital Committee;","page_number":25,"box":{"x":343,"y":622,"width":240,"height":10}},{"id":"0c0d21cd-4ac0-49a3-971c-34b0c89d7371","block_type":"box","text":"Senior Managing Director of BlackRock, Inc.","page_number":25,"box":{"x":343,"y":634,"width":262,"height":10}},{"id":"f1ce0b17-6fb2-4022-bdf9-3c819079e786","block_type":"box","text":"from 2010 to 2019; oversaw BlackRock’s","page_number":25,"box":{"x":342,"y":646,"width":254,"height":9}},{"id":"f8cf9149-67ef-4b25-8079-6cf290ee5f0f","block_type":"box","text":"Strategic Partner Program and Strategic","page_number":25,"box":{"x":343,"y":658,"width":239,"height":10}},{"id":"d5c42256-e01c-4f0a-be13-d5e82adb39f1","block_type":"box","text":"Product Management Group from 2012 to","page_number":25,"box":{"x":343,"y":670,"width":254,"height":10}},{"id":"24734f5e-7a3b-4492-bf0c-2962a6990a54","block_type":"box","text":"2019; Member of the Board of Managers of","page_number":25,"box":{"x":343,"y":682,"width":265,"height":10}},{"id":"3dca8b1e-ba78-4ea9-a309-e51b041f36bc","block_type":"box","text":"BlackRock Investments, LLC from 2011 to","page_number":25,"box":{"x":343,"y":694,"width":255,"height":9}},{"id":"d50d8cad-659f-4679-9633-fb24b6128904","block_type":"box","text":"2018; Global Head of BlackRock’s Retail","page_number":25,"box":{"x":343,"y":706,"width":245,"height":9}},{"id":"b5355d9c-d56c-41c7-b99b-fb113aa02fad","block_type":"box","text":"and iShares","page_number":25,"box":{"x":343,"y":718,"width":72,"height":8}},{"id":"97987f66-b239-4dc7-bd31-c6b316ae625f","block_type":"box","text":"®","page_number":25,"box":{"x":415,"y":718,"width":5,"height":4}},{"id":"761ef9b2-3952-4cf8-befc-5cfddeaf167a","block_type":"box","text":"businesses from 2012 to","page_number":25,"box":{"x":425,"y":718,"width":153,"height":8}},{"id":"d100b495-2d52-47bf-b4b0-bb3ac46c4650","block_type":"box","text":"2016.","page_number":25,"box":{"x":343,"y":730,"width":36,"height":8}},{"id":"68f297c0-06f3-4822-9875-e0ad767c9fea","block_type":"box","text":"78 RICs consisting of","page_number":25,"box":{"x":627,"y":586,"width":129,"height":10}},{"id":"5fa2568a-c928-4108-beef-631ddcc6f14d","block_type":"box","text":"255 Portfolios","page_number":25,"box":{"x":627,"y":598,"width":85,"height":8}},{"id":"59af9b21-f0a9-4be7-bb98-f0fba4079839","block_type":"box","text":"None","page_number":25,"box":{"x":774,"y":586,"width":30,"height":8}},{"id":"948a47d0-6cc3-4bcd-96ba-592c2d5fb422","block_type":"box","text":"John M. Perlowski","page_number":25,"box":{"x":69,"y":747,"width":107,"height":8}},{"id":"e13b3fc1-cd7d-43d0-9369-4c45d7bc0508","block_type":"box","text":"6","page_number":25,"box":{"x":177,"y":747,"width":4,"height":4}},{"id":"223bbff1-33f0-4524-9c82-fd4186eb0dd7","block_type":"box","text":"1964","page_number":25,"box":{"x":69,"y":763,"width":33,"height":8}},{"id":"7410785c-f7dc-478c-a4bc-0231053784f2","block_type":"box","text":"Trustee","page_number":25,"box":{"x":235,"y":747,"width":45,"height":8}},{"id":"c746b338-073b-4dc9-ae3f-877ea990fc57","block_type":"box","text":"(Since 2015)","page_number":25,"box":{"x":235,"y":759,"width":78,"height":10}},{"id":"1a217cdc-74f6-4167-a9d0-87eee8690612","block_type":"box","text":"President and","page_number":25,"box":{"x":236,"y":771,"width":82,"height":8}},{"id":"4d6c676a-7e93-430d-9510-2914ce70aaf0","block_type":"box","text":"Chief Executive","page_number":25,"box":{"x":235,"y":783,"width":91,"height":8}},{"id":"9bd1d1f5-83ea-40f9-a874-8c216b9e7dab","block_type":"box","text":"Officer","page_number":25,"box":{"x":235,"y":795,"width":40,"height":8}},{"id":"83632eb2-aa8e-456d-8502-5e2996e38dcf","block_type":"box","text":"(Since 2010)","page_number":25,"box":{"x":235,"y":807,"width":78,"height":10}},{"id":"038f79cc-29c4-44d1-8836-39b7bbeea81e","block_type":"box","text":"Senior Managing Director of BlackRock, Inc.","page_number":25,"box":{"x":343,"y":747,"width":262,"height":10}},{"id":"be798f61-b874-45e2-b3fe-00239215de16","block_type":"box","text":"since 2026; Managing Director of BlackRock,","page_number":25,"box":{"x":343,"y":759,"width":272,"height":10}},{"id":"bfa32a2a-7a3f-4363-b7a0-de0b8bba2dca","block_type":"box","text":"Inc. from 2009 to 2025; Member of","page_number":25,"box":{"x":343,"y":771,"width":218,"height":10}},{"id":"81b3ef5e-877d-4941-ad7c-f673bf20f79a","block_type":"box","text":"BlackRock’s Global Executive Committee","page_number":25,"box":{"x":343,"y":783,"width":246,"height":8}},{"id":"87d863f2-9de5-45e6-9ba1-f94459cdbb52","block_type":"box","text":"since 2025; Head of BlackRock Global","page_number":25,"box":{"x":343,"y":795,"width":232,"height":10}},{"id":"e387f8d0-1b79-48b1-80e4-7c30b6a0ca4e","block_type":"box","text":"Business Operations Services since 2009;","page_number":25,"box":{"x":343,"y":807,"width":258,"height":10}},{"id":"9f8d0a52-80e2-4e9f-bbc0-3bf9b3f4f133","block_type":"box","text":"Advisory Director of Family Resource Network","page_number":25,"box":{"x":342,"y":819,"width":274,"height":10}},{"id":"e1d72a63-c754-4280-9fdb-1d98a9ac69e9","block_type":"box","text":"(charitable foundation) since 2009.","page_number":25,"box":{"x":343,"y":831,"width":211,"height":10}},{"id":"7d6194a6-8893-4ec1-a7d1-9f2b4f615844","block_type":"box","text":"78 RICs consisting of","page_number":25,"box":{"x":627,"y":747,"width":129,"height":10}},{"id":"b356929f-2fe5-47ae-9305-098173a7554e","block_type":"box","text":"255 Portfolios","page_number":25,"box":{"x":627,"y":759,"width":85,"height":8}},{"id":"4d348b1d-24fb-4b20-981d-c31f7ff3110b","block_type":"box","text":"None","page_number":25,"box":{"x":774,"y":747,"width":30,"height":8}},{"id":"a5c7836e-d6ce-477d-b117-6e6404b4803a","block_type":"box","text":"1","page_number":25,"box":{"x":69,"y":855,"width":3,"height":3}},{"id":"8e6a5ebf-9b68-486f-beea-f06a6e841a4a","block_type":"box","text":"The address of each Trustee is c/o BlackRock, Inc., 50 Hudson Yards, New York, New York 10001.","page_number":25,"box":{"x":93,"y":855,"width":563,"height":8}},{"id":"5b7cc32c-12b5-41b4-bb67-e5c14a59f9c3","block_type":"box","text":"2","page_number":25,"box":{"x":69,"y":867,"width":3,"height":4}},{"id":"322c4487-cc4c-47f7-b3f4-d61abf6ffd6d","block_type":"box","text":"Each Independent Trustee holds office until his or her successor is duly elected and qualifies or until his or her earlier death, resignation,","page_number":25,"box":{"x":94,"y":867,"width":782,"height":9}},{"id":"978cff9a-e1d2-4e60-850a-02c35edf0443","block_type":"box","text":"retirement or removal as provided by the Trust’s by-laws or charter or statute, or until December 31 of the year in which he or she turns 75.","page_number":25,"box":{"x":94,"y":877,"width":795,"height":9}},{"id":"ac48afcd-e773-4665-b7bd-c96ba30e025e","block_type":"box","text":"Trustees who are “interested persons,” as defined in the Investment Company Act, serve until their successor is duly elected and qualifies or","page_number":25,"box":{"x":93,"y":887,"width":809,"height":9}},{"id":"5f3c1457-756b-46ec-b94e-ff34eb87caa6","block_type":"box","text":"until their earlier death, resignation, retirement or removal as provided by the Trust’s by-laws or statute, or until December 31 of the year in","page_number":25,"box":{"x":94,"y":897,"width":794,"height":9}},{"id":"573ce561-78cb-4fca-aabd-c82d626d7838","block_type":"box","text":"which they turn 72. The Board may determine to extend the terms of Independent Trustees on a case-by-case basis, as appropriate.","page_number":25,"box":{"x":93,"y":907,"width":754,"height":9}},{"id":"b365dc68-a620-41ae-9285-de2ab6b44288","block_type":"box","text":"I-16","page_number":25,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"c87b826a-e2c1-41cf-b2a8-4c143c5b3a04","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":25,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9fb7325c-f323-4dd2-8f08-b695a5aa31b0","block_type":"box","text":"3","page_number":26,"box":{"x":69,"y":45,"width":3,"height":4}},{"id":"f4833c9c-fa86-4a8e-8b06-2c317b11585e","block_type":"box","text":"Following the combination of MLIM and BlackRock, Inc. in September 2006, the various legacy MLIM and legacy BlackRock fund boards were","page_number":26,"box":{"x":94,"y":45,"width":804,"height":9}},{"id":"1d343693-54ed-4c36-8940-de63e5981459","block_type":"box","text":"realigned and consolidated into three new fund boards in 2007. In addition, effective January 1, 2019, three BlackRock Fund Complexes were","page_number":26,"box":{"x":94,"y":55,"width":812,"height":9}},{"id":"5e440a93-a64c-43b0-abe6-c6b0493a8ae3","block_type":"box","text":"realigned and consolidated into two BlackRock Fund Complexes. As a result, although the chart shows the year that each Independent Trustee","page_number":26,"box":{"x":94,"y":65,"width":813,"height":9}},{"id":"ef78041e-648a-4724-921a-6fb1e1dd75b1","block_type":"box","text":"joined the Board, certain Independent Trustees first became members of the boards of other BlackRock-advised Funds, legacy MLIM funds or","page_number":26,"box":{"x":92,"y":75,"width":809,"height":9}},{"id":"7e629421-6fe1-4c5c-b856-936bd0c772b4","block_type":"box","text":"legacy BlackRock funds as follows: Susan J. Carter, 2016; Collette Chilton, 2015; Neil A. Cotty, 2016; Cynthia A. Montgomery, 1994; Mark","page_number":26,"box":{"x":94,"y":85,"width":794,"height":9}},{"id":"71d128d5-a8d3-4127-9784-694a37ceb3d1","block_type":"box","text":"Stalnecker, 2015; Kenneth L. Urish, 1999; Claire A. Walton, 2016.","page_number":26,"box":{"x":93,"y":96,"width":381,"height":8}},{"id":"85f9f516-012f-44d7-910f-0644eeeb565d","block_type":"box","text":"4","page_number":26,"box":{"x":68,"y":108,"width":4,"height":4}},{"id":"168903dc-e9f6-4702-93dc-081860462b58","block_type":"box","text":"Mr. Jarczyk and Mr. Stern were each appointed as Trustees of the Trust effective July 1, 2026. Previously, each served as a consultant to the","page_number":26,"box":{"x":94,"y":108,"width":807,"height":9}},{"id":"62d00d33-5b1d-4016-a188-445a261873f7","block_type":"box","text":"Independent Trustees from April 1, 2026 to July 1, 2026.","page_number":26,"box":{"x":94,"y":118,"width":326,"height":9}},{"id":"3acd3f30-0643-44fe-938f-312b80f48bdf","block_type":"box","text":"5","page_number":26,"box":{"x":69,"y":131,"width":3,"height":4}},{"id":"3c100211-f3d8-41ae-9aa7-2045e9611b57","block_type":"box","text":"Mr. Fairbairn and Mr. Perlowski are both “interested persons,” as defined in the Investment Company Act, of the Trust based on their positions","page_number":26,"box":{"x":94,"y":131,"width":814,"height":9}},{"id":"d128d1cf-f4d1-47a8-a1ca-de7912a46074","block_type":"box","text":"with BlackRock, Inc. and its affiliates. Mr. Fairbairn and Mr. Perlowski are also board members of the BlackRock Fixed-Income Complex.","page_number":26,"box":{"x":93,"y":141,"width":772,"height":9}},{"id":"8a95d4e9-014f-40f5-a4e5-75efecccc642","block_type":"box","text":"6","page_number":26,"box":{"x":69,"y":154,"width":3,"height":3}},{"id":"1457a47e-009a-4a53-b786-132b666c4384","block_type":"box","text":"Mr. Perlowski is also a trustee of the BlackRock HPS Credit Strategies Fund and BlackRock Private Investments Fund.","page_number":26,"box":{"x":94,"y":153,"width":669,"height":10}},{"id":"86570f2f-c0d3-43d4-9f15-305144818987","block_type":"box","text":"Certain biographical and other information relating to the officers of the Trust who are not Trustees is set forth","page_number":26,"box":{"x":102,"y":174,"width":787,"height":12}},{"id":"2ff7de18-1942-419c-8c00-84b8f7f8a51e","block_type":"box","text":"below, including their address and year of birth, principal occupations for at least the last five years and length of","page_number":26,"box":{"x":69,"y":189,"width":808,"height":12}},{"id":"87e18f6c-e0ff-435b-be32-efa13d2dde5a","block_type":"box","text":"time served.","page_number":26,"box":{"x":68,"y":205,"width":89,"height":9}},{"id":"20249e09-a1e4-4ace-b279-797dc794e16a","block_type":"box","text":"Name","page_number":26,"box":{"x":160,"y":233,"width":32,"height":7}},{"id":"d9feb7c1-0dc2-4126-b0fb-5a2b48e3ad93","block_type":"box","text":"and Year of Birth","page_number":26,"box":{"x":122,"y":243,"width":97,"height":7}},{"id":"387c638b-df4f-417b-b2da-cc9641045117","block_type":"box","text":"1,2","page_number":26,"box":{"x":220,"y":243,"width":10,"height":4}},{"id":"29feb9c4-2f56-4e04-841a-176cfc443151","block_type":"box","text":"Position(s) Held","page_number":26,"box":{"x":335,"y":233,"width":93,"height":9}},{"id":"e8ac7d72-5bf9-46b0-bfaf-d73c2b9b189d","block_type":"box","text":"(Length of Service)","page_number":26,"box":{"x":326,"y":243,"width":110,"height":9}},{"id":"cd82a42d-98fc-430a-a804-5745b7c79d24","block_type":"box","text":"Principal Occupation(s)","page_number":26,"box":{"x":626,"y":233,"width":136,"height":9}},{"id":"34bc530f-eeda-4b5f-9438-590de34deba2","block_type":"box","text":"During Past Five Years","page_number":26,"box":{"x":629,"y":243,"width":131,"height":9}},{"id":"50fc14d6-2f97-4cf5-a7ca-e04d6af430ff","block_type":"box","text":"Officers Who Are Not Trustees","page_number":26,"box":{"x":69,"y":257,"width":194,"height":8}},{"id":"07a7fb36-0b2a-4b85-aede-a2d2fbda64cf","block_type":"box","text":"Jennifer McGovern","page_number":26,"box":{"x":69,"y":275,"width":110,"height":8}},{"id":"2624401a-4cd4-4d68-96ff-e73c72156e18","block_type":"box","text":"1977","page_number":26,"box":{"x":69,"y":291,"width":32,"height":8}},{"id":"78ef95b0-79af-4e37-abcc-7f3fd1f30bf9","block_type":"box","text":"Vice President","page_number":26,"box":{"x":293,"y":275,"width":87,"height":8}},{"id":"eca38d15-d94c-40c9-b0a4-cb0a98b0519b","block_type":"box","text":"(Since 2014)","page_number":26,"box":{"x":294,"y":287,"width":78,"height":10}},{"id":"593c4849-828e-4923-ad9b-e478482a4aca","block_type":"box","text":"Managing Director of BlackRock, Inc. since 2016.","page_number":26,"box":{"x":480,"y":275,"width":297,"height":10}},{"id":"32d17f2e-0cbe-4c00-8706-677fd9a2ae62","block_type":"box","text":"Trent Walker","page_number":26,"box":{"x":68,"y":308,"width":75,"height":8}},{"id":"cd5d1315-12ea-4ccc-a59e-109ae62650bb","block_type":"box","text":"1974","page_number":26,"box":{"x":69,"y":324,"width":33,"height":8}},{"id":"f92d293d-cc8f-4a5d-8112-c6e0bfbb142d","block_type":"box","text":"Chief","page_number":26,"box":{"x":294,"y":308,"width":31,"height":8}},{"id":"9253c5a0-eb0c-46f6-b95f-00a30df36183","block_type":"box","text":"Financial","page_number":26,"box":{"x":294,"y":320,"width":51,"height":8}},{"id":"e736601e-71ab-4d6e-8e9b-6961e759cad1","block_type":"box","text":"Officer","page_number":26,"box":{"x":294,"y":332,"width":40,"height":8}},{"id":"23695f86-6bb0-4f11-9fc8-a233e6b90356","block_type":"box","text":"(Since 2021) and","page_number":26,"box":{"x":294,"y":344,"width":104,"height":10}},{"id":"6c744192-4646-4f5e-97e0-279db927d371","block_type":"box","text":"Treasurer","page_number":26,"box":{"x":293,"y":356,"width":58,"height":8}},{"id":"0af672a7-b0ad-4d08-b2ea-63d4d5932fce","block_type":"box","text":"(Since 2026)","page_number":26,"box":{"x":294,"y":368,"width":78,"height":10}},{"id":"5555ab2b-0fc4-471b-a2b9-483fa5484213","block_type":"box","text":"Managing Director of BlackRock, Inc. since 2019.","page_number":26,"box":{"x":480,"y":308,"width":297,"height":10}},{"id":"7d51af88-bf55-46a0-8b27-6fb593abbee1","block_type":"box","text":"Charles Park","page_number":26,"box":{"x":69,"y":386,"width":76,"height":8}},{"id":"cf144733-5bbd-4524-adad-f4d71836212f","block_type":"box","text":"3","page_number":26,"box":{"x":145,"y":386,"width":4,"height":4}},{"id":"a37d8008-8ead-4c86-9482-ddcfcd0199bf","block_type":"box","text":"1967","page_number":26,"box":{"x":69,"y":402,"width":32,"height":8}},{"id":"c3bab11b-3a56-46a7-9ca7-00060280cf7e","block_type":"box","text":"Chief","page_number":26,"box":{"x":294,"y":386,"width":31,"height":8}},{"id":"a6819292-e80f-4ad4-824d-602cada2acdc","block_type":"box","text":"Compliance","page_number":26,"box":{"x":294,"y":398,"width":73,"height":10}},{"id":"91aa77c2-942e-4ac8-94df-9195c77efc0b","block_type":"box","text":"Officer","page_number":26,"box":{"x":294,"y":410,"width":42,"height":8}},{"id":"e012c4f3-d6eb-4b1b-901c-62b4550e6a7c","block_type":"box","text":"(Since 2026; and from","page_number":26,"box":{"x":294,"y":422,"width":144,"height":10}},{"id":"01286d78-9bc7-4fdc-b308-beccb8b1cb72","block_type":"box","text":"2014-2023)","page_number":26,"box":{"x":294,"y":434,"width":77,"height":9}},{"id":"a72c4650-9c31-4aeb-b386-20d4a64df412","block_type":"box","text":"Managing Director of BlackRock, Inc. (since 2006); Chief Compliance","page_number":26,"box":{"x":480,"y":386,"width":415,"height":10}},{"id":"05219d8a-4fc7-4065-87ab-e61c4ea56d26","block_type":"box","text":"Officer of BlackRock Advisors, LLC (since 2014) and BlackRock Fund","page_number":26,"box":{"x":480,"y":398,"width":414,"height":10}},{"id":"4b8e8f55-d2d1-4282-8435-b1ac48f69222","block_type":"box","text":"Advisors (since 2006); Chief Compliance Officer of the iShares","page_number":26,"box":{"x":479,"y":410,"width":378,"height":10}},{"id":"d5b372b7-da31-4483-b1de-cfdf971201e1","block_type":"box","text":"Complex (since 2026 and 2006-2023); Chief Compliance Officer of","page_number":26,"box":{"x":480,"y":422,"width":407,"height":10}},{"id":"98c820d8-be6b-4f7a-8514-b94477c3ff54","block_type":"box","text":"the BlackRock Multi-Asset Complex and the BlackRock Fixed-Income","page_number":26,"box":{"x":479,"y":434,"width":411,"height":9}},{"id":"9be494f8-0558-422b-a573-da3d0016e605","block_type":"box","text":"Complex (since 2026 and 2014-2023).","page_number":26,"box":{"x":480,"y":446,"width":236,"height":9}},{"id":"414767d2-c393-4bfd-8f15-ddba96205af7","block_type":"box","text":"Lisa Belle","page_number":26,"box":{"x":69,"y":463,"width":58,"height":8}},{"id":"837fb1f1-1f1a-4803-967f-59eb9b8ac0e0","block_type":"box","text":"1968","page_number":26,"box":{"x":69,"y":479,"width":33,"height":8}},{"id":"baac04be-0248-4351-baa3-8786d4fca0e3","block_type":"box","text":"Anti-Money Laundering","page_number":26,"box":{"x":293,"y":463,"width":136,"height":10}},{"id":"c43a3ea8-515d-4e85-94d6-516a4732b313","block_type":"box","text":"Compliance Officer","page_number":26,"box":{"x":294,"y":475,"width":114,"height":10}},{"id":"052562f5-f7ae-4dd0-94b1-1182e7820532","block_type":"box","text":"(Since 2019)","page_number":26,"box":{"x":294,"y":487,"width":78,"height":10}},{"id":"b1565f8d-47a2-4b32-9b40-e1ca52454ca7","block_type":"box","text":"Managing Director of BlackRock, Inc. since 2019.","page_number":26,"box":{"x":480,"y":463,"width":297,"height":10}},{"id":"5d691248-3b53-40c3-a630-e82398a5ccdb","block_type":"box","text":"Janey Ahn","page_number":26,"box":{"x":69,"y":505,"width":59,"height":10}},{"id":"8354db97-b0a1-4c0c-97f8-51023a1039ba","block_type":"box","text":"1975","page_number":26,"box":{"x":69,"y":521,"width":33,"height":8}},{"id":"dd3f2b1e-8c29-4a7c-bfff-d82109252ddd","block_type":"box","text":"Secretary","page_number":26,"box":{"x":294,"y":505,"width":58,"height":10}},{"id":"33eec1e4-3062-4e47-a796-635e4b52d09e","block_type":"box","text":"(Since 2019)","page_number":26,"box":{"x":294,"y":517,"width":78,"height":10}},{"id":"c5a6d2ef-6fbd-4128-a196-c00efc3f4930","block_type":"box","text":"Managing Director of BlackRock, Inc. since 2018.","page_number":26,"box":{"x":480,"y":505,"width":297,"height":10}},{"id":"61a2bf77-c52d-4e6d-8982-3610abd9177a","block_type":"box","text":"1","page_number":26,"box":{"x":69,"y":544,"width":3,"height":4}},{"id":"b3b6b989-46c8-443b-9d2d-c096e3aa3210","block_type":"box","text":"The address of each Officer is c/o BlackRock, Inc., 50 Hudson Yards, New York, New York 10001.","page_number":26,"box":{"x":93,"y":544,"width":559,"height":9}},{"id":"df6f6ba4-157b-4449-957a-3e41357a657a","block_type":"box","text":"2","page_number":26,"box":{"x":69,"y":557,"width":3,"height":3}},{"id":"a0deb0f7-d03a-45eb-b963-0394b6092976","block_type":"box","text":"Officers of the Trust serve at the pleasure of the Board.","page_number":26,"box":{"x":93,"y":557,"width":318,"height":8}},{"id":"2391f1f8-65a0-4738-8685-f8d6c95d931f","block_type":"box","text":"3","page_number":26,"box":{"x":69,"y":569,"width":3,"height":4}},{"id":"d0744e7b-ad4c-4834-b752-0f07b3055028","block_type":"box","text":"Effective August 1, 2026, Charles Park succeeded Aaron Wasserman as Chief Compliance Officer.","page_number":26,"box":{"x":94,"y":569,"width":560,"height":9}},{"id":"02e30169-4670-4591-9716-a0e2355ac4df","block_type":"box","text":"Share Ownership","page_number":26,"box":{"x":68,"y":598,"width":123,"height":11}},{"id":"0360c9b6-cd20-485d-8147-97a8aecc1b57","block_type":"box","text":"Information relating to each Trustee’s share ownership in the Portfolio and in all BlackRock-advised Funds that","page_number":26,"box":{"x":102,"y":620,"width":789,"height":12}},{"id":"f0515251-a400-43f1-9e31-28440a7e9fb7","block_type":"box","text":"are currently overseen by the respective Trustee (“Supervised Funds”) as of December 31, 2025, except as","page_number":26,"box":{"x":69,"y":635,"width":770,"height":12}},{"id":"1067582b-122e-485a-8029-3f951f642a20","block_type":"box","text":"otherwise noted, is set forth in the chart below. Amounts shown may include shares as to which a Trustee has","page_number":26,"box":{"x":69,"y":651,"width":791,"height":11}},{"id":"0e315dca-9b8f-4356-b19d-a696aae9fdda","block_type":"box","text":"indirect beneficial ownership, such as through participation in certain family accounts, 529 college savings plan","page_number":26,"box":{"x":70,"y":666,"width":796,"height":11}},{"id":"6ec49b71-ebe3-4bad-ae11-fb8755f50903","block_type":"box","text":"interests, or similar arrangements where the Trustee has beneficial economic interest but not a direct ownership","page_number":26,"box":{"x":70,"y":681,"width":803,"height":11}},{"id":"a38a7bc8-0705-44c9-8310-1827a9762ae2","block_type":"box","text":"interest.","page_number":26,"box":{"x":70,"y":696,"width":56,"height":9}},{"id":"20ab7f88-45c7-4fea-9cf4-a8dae8869554","block_type":"box","text":"Name","page_number":26,"box":{"x":69,"y":755,"width":32,"height":7}},{"id":"c1e439eb-7e3e-4399-ac88-9d08e2a61780","block_type":"box","text":"Dollar","page_number":26,"box":{"x":699,"y":724,"width":33,"height":7}},{"id":"5318c14f-1411-4dcf-9cfb-f108eab22e25","block_type":"box","text":"Range of Equity","page_number":26,"box":{"x":670,"y":734,"width":91,"height":9}},{"id":"0cfc0160-a11d-4e31-b8b9-e7800e2541e5","block_type":"box","text":"Securities in the","page_number":26,"box":{"x":667,"y":744,"width":96,"height":8}},{"id":"7a0eb468-4109-4fb4-951d-40c417cc11fd","block_type":"box","text":"Portfolio","page_number":26,"box":{"x":691,"y":754,"width":49,"height":8}},{"id":"ff96ae2f-6adc-40d1-ad93-b5977205246b","block_type":"box","text":"Aggregate Dollar","page_number":26,"box":{"x":805,"y":724,"width":99,"height":9}},{"id":"f68bd996-8abb-4032-b359-3b1bda3dec93","block_type":"box","text":"Range of Equity","page_number":26,"box":{"x":809,"y":734,"width":91,"height":9}},{"id":"3fed25b9-9ded-45ab-98d8-418bb4484b5b","block_type":"box","text":"Securities in","page_number":26,"box":{"x":818,"y":744,"width":72,"height":8}},{"id":"4e2ab7c8-7594-472f-9dcb-e846dc23f876","block_type":"box","text":"Supervised Funds","page_number":26,"box":{"x":803,"y":755,"width":102,"height":8}},{"id":"22a6e109-21b4-40a8-93bf-d9d8909efa8c","block_type":"box","text":"Independent Trustees","page_number":26,"box":{"x":70,"y":772,"width":154,"height":11}},{"id":"8127aa70-bfd0-4d0e-bf74-eaf3086c13f6","block_type":"box","text":"Christopher J. Ailman . . . . .","page_number":26,"box":{"x":79,"y":787,"width":191,"height":11}},{"id":"cd68e14f-466d-455c-95cd-e3735b39546c","block_type":"box","text":"............................................","page_number":26,"box":{"x":277,"y":795,"width":352,"height":1}},{"id":"6d70a781-c117-4a36-8922-7c5f47b9a596","block_type":"box","text":"None Over $100,000","page_number":26,"box":{"x":698,"y":787,"width":211,"height":11}},{"id":"2dd9c389-632c-4e59-a892-df920b12d830","block_type":"box","text":"Susan J. Carter","page_number":26,"box":{"x":79,"y":803,"width":110,"height":8}},{"id":"de0227fa-2fb8-4fe7-9380-8bcf60ba62bc","block_type":"box","text":"......................................................","page_number":26,"box":{"x":195,"y":810,"width":434,"height":1}},{"id":"71f0f342-fc5a-406b-b545-bb5705e325d1","block_type":"box","text":"None Over $100,000","page_number":26,"box":{"x":698,"y":802,"width":211,"height":11}},{"id":"e4aa141a-bb21-4712-bbda-d21158b11605","block_type":"box","text":"Collette Chilton . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":26,"box":{"x":79,"y":818,"width":550,"height":9}},{"id":"3054abf2-ad59-437e-a5f9-2cfcac3dd2b4","block_type":"box","text":"None Over $100,000","page_number":26,"box":{"x":698,"y":817,"width":211,"height":11}},{"id":"e60b0883-f9c7-42d0-a762-28863f768dc5","block_type":"box","text":"Neil A. Cotty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Over","page_number":26,"box":{"x":79,"y":833,"width":613,"height":11}},{"id":"ad3e1582-dffe-4244-b90e-f3856732c32c","block_type":"box","text":"$100,000 Over $100,000","page_number":26,"box":{"x":698,"y":832,"width":211,"height":11}},{"id":"34667bbe-b1fa-4755-9b7c-fa9ce344fdf3","block_type":"box","text":"Jeffrey Jarczyk* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":26,"box":{"x":78,"y":848,"width":551,"height":11}},{"id":"159cecb8-3cd4-4123-8d16-91ea965a195e","block_type":"box","text":"None None","page_number":26,"box":{"x":698,"y":848,"width":174,"height":9}},{"id":"a677ed20-c3e7-4e0f-a8aa-7051d45a4124","block_type":"box","text":"Henry R. Keizer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":26,"box":{"x":79,"y":863,"width":550,"height":11}},{"id":"45b1960c-642c-4a3d-8a71-89964000634f","block_type":"box","text":"None Over $100,000","page_number":26,"box":{"x":698,"y":862,"width":211,"height":11}},{"id":"2c3a3bcc-99d2-4868-9939-c8c3c75d8baa","block_type":"box","text":"Cynthia A. Montgomery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":26,"box":{"x":79,"y":878,"width":550,"height":11}},{"id":"218753f0-99c4-409a-8f24-76dc30af3255","block_type":"box","text":"None Over $100,000","page_number":26,"box":{"x":698,"y":877,"width":211,"height":12}},{"id":"ea157030-2b49-4f98-b3a2-ecce5166d2c6","block_type":"box","text":"Donald C. Opatrny. . .","page_number":26,"box":{"x":79,"y":893,"width":151,"height":11}},{"id":"dded8ee8-63f1-448d-8757-037209a07d1d","block_type":"box","text":".................................................","page_number":26,"box":{"x":236,"y":901,"width":393,"height":1}},{"id":"1d0e897c-87ec-4882-8d2c-0ab102d09f66","block_type":"box","text":"None Over $100,000","page_number":26,"box":{"x":698,"y":892,"width":211,"height":12}},{"id":"861fa625-a5ee-4030-807f-c32a581c43fe","block_type":"box","text":"I-17","page_number":26,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"4efcb7b1-9cc4-4894-be5a-5e3bf45c5378","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":26,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a2496b46-0896-4b24-b6bc-9b5baf28806d","block_type":"box","text":"Name","page_number":27,"box":{"x":69,"y":79,"width":32,"height":7}},{"id":"cdffb269-0a9c-408b-9716-a095f4d49fa3","block_type":"box","text":"Dollar","page_number":27,"box":{"x":699,"y":49,"width":33,"height":7}},{"id":"f818c989-c4c9-4dfe-927a-1d0b65b0bf7a","block_type":"box","text":"Range of Equity","page_number":27,"box":{"x":670,"y":59,"width":91,"height":9}},{"id":"06433d5a-9699-43c6-b0f7-bd64d5380f56","block_type":"box","text":"Securities in the","page_number":27,"box":{"x":667,"y":69,"width":96,"height":7}},{"id":"df70a9db-baa2-4e5a-b90a-ca41ea6f073c","block_type":"box","text":"Portfolio","page_number":27,"box":{"x":691,"y":79,"width":49,"height":7}},{"id":"1de9bbc0-b257-412b-9497-eba6bf68b3c1","block_type":"box","text":"Aggregate Dollar","page_number":27,"box":{"x":805,"y":49,"width":99,"height":9}},{"id":"328e965b-6fea-4866-95d3-83f8b99fead2","block_type":"box","text":"Range of Equity","page_number":27,"box":{"x":809,"y":59,"width":91,"height":9}},{"id":"ecf7d886-7812-40a3-acd6-3d4119d4486a","block_type":"box","text":"Securities in","page_number":27,"box":{"x":818,"y":69,"width":72,"height":7}},{"id":"0212e498-7ecb-49d5-9446-45d3e7934230","block_type":"box","text":"Supervised Funds","page_number":27,"box":{"x":803,"y":79,"width":102,"height":9}},{"id":"7d91e9c2-3b2b-46f7-823f-ee5e355b03ae","block_type":"box","text":"Lori Richards","page_number":27,"box":{"x":79,"y":97,"width":91,"height":9}},{"id":"d33beb80-2f38-437d-b627-277f5b7f2132","block_type":"box","text":"........................................................","page_number":27,"box":{"x":179,"y":104,"width":450,"height":2}},{"id":"4686f579-cbc9-4038-9dba-825cec2569fa","block_type":"box","text":"None None","page_number":27,"box":{"x":698,"y":97,"width":174,"height":9}},{"id":"12132973-7c97-446e-9770-4941e2ec50fa","block_type":"box","text":"Mark Stalnecker","page_number":27,"box":{"x":79,"y":112,"width":115,"height":9}},{"id":"bc629dca-af62-44c4-b579-89b76acc1c4e","block_type":"box","text":".....................................................","page_number":27,"box":{"x":203,"y":119,"width":426,"height":2}},{"id":"30645a06-5604-47aa-864e-025508e86fb6","block_type":"box","text":"None Over $100,000","page_number":27,"box":{"x":698,"y":111,"width":211,"height":12}},{"id":"bedfe38b-8c46-4563-9dfc-83c1cfaadad8","block_type":"box","text":"Marc D. Stern* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":27,"box":{"x":79,"y":127,"width":550,"height":9}},{"id":"89bd50ca-b816-4e9e-89c7-d98ed50572de","block_type":"box","text":"None None","page_number":27,"box":{"x":698,"y":127,"width":174,"height":9}},{"id":"39c24ecd-79e4-417a-8308-6744165bfc13","block_type":"box","text":"Kenneth L. Urish","page_number":27,"box":{"x":79,"y":143,"width":117,"height":8}},{"id":"6eed5234-90c2-45c1-96bc-86da85ca528f","block_type":"box","text":".....................................................","page_number":27,"box":{"x":203,"y":150,"width":426,"height":1}},{"id":"5bd04bfc-534e-4cff-a811-e215236b0b78","block_type":"box","text":"None Over $100,000","page_number":27,"box":{"x":698,"y":142,"width":211,"height":11}},{"id":"98a5d9c2-7bfe-48b3-9f3f-5079c0d9630d","block_type":"box","text":"Claire A. Walton. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":27,"box":{"x":79,"y":158,"width":550,"height":8}},{"id":"36bcde9e-3afe-4125-a699-e1b2f2c7d879","block_type":"box","text":"None Over $100,000","page_number":27,"box":{"x":698,"y":157,"width":211,"height":11}},{"id":"419621b0-ff4c-4b32-99d7-daac42cc3b2e","block_type":"box","text":"Interested Trustees","page_number":27,"box":{"x":70,"y":173,"width":138,"height":9}},{"id":"a3b91414-d808-4fb5-8949-fc264645cf3d","block_type":"box","text":"Robert Fairbairn. . .","page_number":27,"box":{"x":79,"y":188,"width":134,"height":9}},{"id":"1defe7f0-c9ae-4df0-a7b0-abeb3f9890ec","block_type":"box","text":"...................................................","page_number":27,"box":{"x":220,"y":195,"width":409,"height":2}},{"id":"50b68a42-d048-4b63-9c25-af2e0a42b950","block_type":"box","text":"None Over $100,000","page_number":27,"box":{"x":698,"y":187,"width":211,"height":11}},{"id":"812b9fc6-dd97-48da-b30b-436007b23b03","block_type":"box","text":"John M. Perlowski","page_number":27,"box":{"x":78,"y":203,"width":127,"height":9}},{"id":"d54fbffc-ac75-49cb-9ce2-32cc5b5e6b03","block_type":"box","text":"....................................................","page_number":27,"box":{"x":211,"y":210,"width":418,"height":2}},{"id":"36580f86-89c9-499d-a75c-a4cbfcc77835","block_type":"box","text":"None Over $100,000","page_number":27,"box":{"x":698,"y":202,"width":211,"height":11}},{"id":"51ec31d9-9b17-417a-b829-e379d15e933f","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":27,"box":{"x":70,"y":227,"width":782,"height":9}},{"id":"782260e4-e9e9-44a9-b5f9-6006bd68a249","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":27,"box":{"x":101,"y":248,"width":767,"height":11}},{"id":"740502b4-aff6-4a32-af21-1d16fb2ecc6c","block_type":"box","text":"owned an aggregate of less than 1% of any class of the outstanding shares of the Portfolio. As of","page_number":27,"box":{"x":69,"y":263,"width":695,"height":12}},{"id":"fa95041d-89ae-4c94-9b10-f479a7b52981","block_type":"box","text":"December 31, 2025 (and with respect to Mr. Jarczyk and Mr. Stern, as of April 1, 2026), none of the Independent","page_number":27,"box":{"x":70,"y":278,"width":811,"height":11}},{"id":"529bf05e-f522-4506-ac61-71e67fb98c2c","block_type":"box","text":"Trustees of the Trust or their immediate family members owned beneficially or of record any securities of the","page_number":27,"box":{"x":68,"y":293,"width":775,"height":12}},{"id":"e27143b7-7886-4bc4-8454-9c3375e29755","block_type":"box","text":"Portfolio’s investment adviser, sub-adviser, principal underwriter, or any person directly or indirectly controlling,","page_number":27,"box":{"x":69,"y":309,"width":788,"height":11}},{"id":"243e65bc-fe2c-4e8b-af94-881136411664","block_type":"box","text":"controlled by, or under common control with such entities.","page_number":27,"box":{"x":69,"y":324,"width":412,"height":11}},{"id":"54480b9d-48bc-4d70-bb3a-2dbbb0190980","block_type":"box","text":"Compensation of Trustees","page_number":27,"box":{"x":69,"y":354,"width":190,"height":11}},{"id":"389c172e-5762-47fd-ae34-23603b2bf618","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":27,"box":{"x":102,"y":376,"width":791,"height":12}},{"id":"71ea5b7e-8232-4834-abcc-7b86a3f75dd5","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":27,"box":{"x":68,"y":392,"width":810,"height":11}},{"id":"63d7a464-d285-49ae-93e2-01e11186f0f7","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":27,"box":{"x":70,"y":406,"width":838,"height":12}},{"id":"d40fc82e-2a05-4ab2-be34-0f49c2a60191","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":27,"box":{"x":69,"y":422,"width":807,"height":11}},{"id":"43c43645-b74a-47a5-ad60-c3a07858afcb","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":27,"box":{"x":69,"y":437,"width":791,"height":11}},{"id":"59b2db03-3dd5-4287-8c62-9129c2b1aa93","block_type":"box","text":"together with out-of-pocket expenses in accordance with a board policy on travel and other business expenses","page_number":27,"box":{"x":68,"y":452,"width":786,"height":11}},{"id":"2f97fdde-ad18-4ef5-869b-ae5f3fd73f99","block_type":"box","text":"relating to attendance at meetings. The Chairs of the Audit Committee, Compliance Committee, Governance","page_number":27,"box":{"x":69,"y":467,"width":769,"height":12}},{"id":"83817e90-cc83-4c35-916b-b67a1f55e8f8","block_type":"box","text":"Committee and Performance Oversight Committee are paid as compensation an additional annual retainer of","page_number":27,"box":{"x":69,"y":482,"width":778,"height":12}},{"id":"d4b25653-56be-41a9-9bc8-e6ca69271b4c","block_type":"box","text":"$45,000, respectively. The Chair of the Board is paid an additional annual retainer of $150,000.","page_number":27,"box":{"x":69,"y":497,"width":689,"height":12}},{"id":"953d3439-1b6b-4485-a533-c380cc0bc0cf","block_type":"box","text":"The following table sets forth the compensation the Trust paid to the Trustees, on behalf of the Portfolio, for the","page_number":27,"box":{"x":101,"y":520,"width":801,"height":12}},{"id":"68db77a9-ddff-4a29-817c-e0eec0d34064","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":27,"box":{"x":68,"y":535,"width":841,"height":12}},{"id":"fe37d8b2-7e73-4342-92de-36cc6f503104","block_type":"box","text":"calendar year ended December 31, 2025.","page_number":27,"box":{"x":69,"y":551,"width":298,"height":11}},{"id":"5e77adb2-73fb-4594-9b59-887412de1150","block_type":"box","text":"Name","page_number":27,"box":{"x":69,"y":629,"width":32,"height":7}},{"id":"245302c8-7a67-45a7-a41a-bdd074b7d835","block_type":"box","text":"Compensation from","page_number":27,"box":{"x":531,"y":619,"width":113,"height":9}},{"id":"e9042688-b0b1-488a-8c88-443109bf8e6e","block_type":"box","text":"the Portfolio","page_number":27,"box":{"x":551,"y":629,"width":73,"height":7}},{"id":"ee6bdd47-01e5-4fec-a0d9-b82940d4ded0","block_type":"box","text":"Estimated Annual","page_number":27,"box":{"x":675,"y":609,"width":101,"height":7}},{"id":"c8865963-96a6-4b75-ae24-9ab97a423dda","block_type":"box","text":"Benefits upon","page_number":27,"box":{"x":686,"y":619,"width":79,"height":9}},{"id":"32703572-0ff7-4320-9f56-a8a99d1e1a13","block_type":"box","text":"Retirement","page_number":27,"box":{"x":694,"y":629,"width":64,"height":7}},{"id":"9452e05c-66e8-4736-8176-bbbd28590b0b","block_type":"box","text":"Aggregate","page_number":27,"box":{"x":828,"y":579,"width":60,"height":9}},{"id":"5eec11e6-45b2-453c-927f-16bdd06c130d","block_type":"box","text":"Compensation","page_number":27,"box":{"x":817,"y":589,"width":82,"height":9}},{"id":"fb71c5d9-e5ad-4154-937d-33b9014f04b5","block_type":"box","text":"from the Portfolio","page_number":27,"box":{"x":807,"y":599,"width":102,"height":7}},{"id":"c7d43d0a-6533-414a-aec3-3eb29816c832","block_type":"box","text":"and Other","page_number":27,"box":{"x":830,"y":609,"width":56,"height":7}},{"id":"6c685863-db8f-4c2e-a1b8-2ab86fcc8689","block_type":"box","text":"BlackRock","page_number":27,"box":{"x":826,"y":619,"width":65,"height":7}},{"id":"c3b1af32-82d5-4948-a5c9-52c0390771eb","block_type":"box","text":"Advised Funds","page_number":27,"box":{"x":814,"y":629,"width":84,"height":7}},{"id":"3ab8288a-1c59-4751-9d7c-f02af9d41cae","block_type":"box","text":"1","page_number":27,"box":{"x":898,"y":629,"width":4,"height":4}},{"id":"4fbfb1f3-b040-48d1-bd28-32c4c271f53a","block_type":"box","text":"Independent Trustees","page_number":27,"box":{"x":70,"y":647,"width":154,"height":11}},{"id":"af68f42b-1bdc-4f26-83da-40adb7249d63","block_type":"box","text":"Christopher J. Ailman","page_number":27,"box":{"x":79,"y":662,"width":149,"height":11}},{"id":"22a5529d-b8e5-49b3-889a-40a18594629d","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,154","page_number":27,"box":{"x":238,"y":661,"width":376,"height":11}},{"id":"ce28be12-e49c-4d6c-9efc-3082fb0f84bb","block_type":"box","text":"None $445,000","page_number":27,"box":{"x":708,"y":661,"width":186,"height":11}},{"id":"5c10377a-936c-4905-9500-a368db6e29f4","block_type":"box","text":"Susan J. Carter","page_number":27,"box":{"x":79,"y":677,"width":110,"height":9}},{"id":"398b6704-363f-4f82-b3ed-8abdd5a49391","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,154","page_number":27,"box":{"x":197,"y":676,"width":417,"height":12}},{"id":"2a8b340c-d9e4-4e37-ace0-5f82468d47ed","block_type":"box","text":"None $445,000","page_number":27,"box":{"x":708,"y":676,"width":186,"height":12}},{"id":"aa0bc077-309e-4297-8251-b276df500319","block_type":"box","text":"Collette Chilton . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,154","page_number":27,"box":{"x":79,"y":692,"width":535,"height":11}},{"id":"83ac7706-2fbd-4a16-aee4-9180f32501f6","block_type":"box","text":"None $445,000","page_number":27,"box":{"x":708,"y":692,"width":186,"height":11}},{"id":"a5b84fa2-5743-44cb-b183-5324962f6919","block_type":"box","text":"Neil A. Cotty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,185","page_number":27,"box":{"x":79,"y":707,"width":535,"height":11}},{"id":"15a2f4ab-e616-4e4a-9e8d-7bdd59806d9b","block_type":"box","text":"None $467,500","page_number":27,"box":{"x":708,"y":707,"width":186,"height":11}},{"id":"1e277252-032f-47c1-89ee-7971d55a96c1","block_type":"box","text":"Jeffrey Jarczyk","page_number":27,"box":{"x":78,"y":722,"width":103,"height":12}},{"id":"cc93fd50-9e1c-4dfd-a571-eb440d02df01","block_type":"box","text":"2","page_number":27,"box":{"x":181,"y":723,"width":4,"height":4}},{"id":"16025c53-0f40-4ba9-88a2-f24c46cb53f3","block_type":"box","text":".......................................","page_number":27,"box":{"x":189,"y":730,"width":311,"height":1}},{"id":"1e6875c6-9833-4906-ad28-2e22c0fa8504","block_type":"box","text":"$292 None None","page_number":27,"box":{"x":569,"y":722,"width":307,"height":10}},{"id":"b0c1b3e5-4fc7-45ff-bbc1-500d6a0495a3","block_type":"box","text":"Henry R. Keizer","page_number":27,"box":{"x":79,"y":738,"width":109,"height":11}},{"id":"32505815-dc4d-4928-9140-04110d484788","block_type":"box","text":"3","page_number":27,"box":{"x":189,"y":738,"width":4,"height":4}},{"id":"5ff34270-bb79-4ad7-9f8d-8d49f08926c9","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,245","page_number":27,"box":{"x":197,"y":737,"width":417,"height":11}},{"id":"3b163a50-1707-43f7-8630-5207e6f18889","block_type":"box","text":"None $490,000","page_number":27,"box":{"x":708,"y":737,"width":186,"height":11}},{"id":"916da0f3-9c46-49db-8dfe-b5b2ede990b2","block_type":"box","text":"Cynthia A. Montgomery","page_number":27,"box":{"x":79,"y":753,"width":164,"height":11}},{"id":"686b7d8f-2d3b-43a0-af83-f0912dd4e368","block_type":"box","text":"4","page_number":27,"box":{"x":244,"y":753,"width":4,"height":4}},{"id":"4d586569-6a30-4b16-9fdb-a5616c4531a2","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,221","page_number":27,"box":{"x":254,"y":752,"width":360,"height":11}},{"id":"4a6d3f9e-026d-43c9-b05d-19c61b2b36ee","block_type":"box","text":"None $490,000","page_number":27,"box":{"x":708,"y":752,"width":186,"height":11}},{"id":"cbd3198a-03bb-4e08-9782-821a595f96ad","block_type":"box","text":"Donald C. Opatrny","page_number":27,"box":{"x":79,"y":768,"width":129,"height":11}},{"id":"04528239-ceee-4134-8a68-7e4fa64185e0","block_type":"box","text":"5","page_number":27,"box":{"x":208,"y":768,"width":4,"height":5}},{"id":"6de9c675-6fdd-43be-b24b-b85411218b6d","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,221","page_number":27,"box":{"x":221,"y":767,"width":393,"height":11}},{"id":"444c1db9-1f68-459b-86d8-8d367bf72391","block_type":"box","text":"None $490,000","page_number":27,"box":{"x":708,"y":767,"width":186,"height":11}},{"id":"710ac3d3-24f1-454f-bc85-0635bb0c8e76","block_type":"box","text":"Lori Richards","page_number":27,"box":{"x":79,"y":783,"width":91,"height":9}},{"id":"6fa6ccdc-f2cf-4473-affd-0ab83ccddb0b","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,154","page_number":27,"box":{"x":181,"y":782,"width":433,"height":11}},{"id":"17f35ff8-81c3-4a93-bacc-77c65ce20dcd","block_type":"box","text":"None $445,000","page_number":27,"box":{"x":708,"y":782,"width":186,"height":11}},{"id":"d9f61ee3-affd-4067-957d-9850eade01b9","block_type":"box","text":"Mark Stalnecker","page_number":27,"box":{"x":79,"y":798,"width":115,"height":9}},{"id":"02f2fc51-45d9-4c38-9d55-880c59733b43","block_type":"box","text":"6","page_number":27,"box":{"x":194,"y":798,"width":5,"height":5}},{"id":"0511a34f-450d-4ab9-9e9b-4ac37ef823bc","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,375","page_number":27,"box":{"x":205,"y":797,"width":409,"height":12}},{"id":"0ee134aa-d0c9-4355-bcc1-4f3c3f56e30f","block_type":"box","text":"None $595,000","page_number":27,"box":{"x":708,"y":797,"width":186,"height":12}},{"id":"cfb5947c-254b-49de-89e1-a22fdaebc7c4","block_type":"box","text":"Marc D. Stern","page_number":27,"box":{"x":79,"y":813,"width":97,"height":9}},{"id":"6082a8e5-1d1c-41f6-aca4-26c405ad69fe","block_type":"box","text":"2","page_number":27,"box":{"x":178,"y":814,"width":4,"height":4}},{"id":"9a67f779-dbd2-4398-a9ee-edb425549628","block_type":"box","text":".......................................","page_number":27,"box":{"x":189,"y":821,"width":311,"height":1}},{"id":"d02ff9d4-ef9c-40f6-9dd3-1c05f31c1302","block_type":"box","text":"$292 None None","page_number":27,"box":{"x":569,"y":812,"width":307,"height":11}},{"id":"1cd0b473-32f8-40c4-9e57-389c8e7b885b","block_type":"box","text":"Kenneth L. Urish","page_number":27,"box":{"x":79,"y":828,"width":117,"height":9}},{"id":"21429255-deb8-405d-a2fe-64f294e273fd","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,154","page_number":27,"box":{"x":205,"y":828,"width":409,"height":11}},{"id":"05f1e5a3-733e-42e1-8c13-bffe7a87f0ca","block_type":"box","text":"None $445,000","page_number":27,"box":{"x":708,"y":828,"width":186,"height":11}},{"id":"ca646af6-c8e0-4bc4-a25e-ff56a253c0b1","block_type":"box","text":"Claire A. Walton","page_number":27,"box":{"x":79,"y":843,"width":111,"height":9}},{"id":"a9ce635e-f838-48a6-9e67-fc0013edded4","block_type":"box","text":"7","page_number":27,"box":{"x":192,"y":844,"width":3,"height":4}},{"id":"bfbd5bc1-a1ba-42a1-9bf9-4bcf749563fa","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,221","page_number":27,"box":{"x":205,"y":843,"width":409,"height":11}},{"id":"7ea6e5ab-e7a2-4a71-8744-941c14226e4b","block_type":"box","text":"None $490,000","page_number":27,"box":{"x":708,"y":843,"width":186,"height":11}},{"id":"c9a46a81-6742-4f52-bc65-3e2247a14d83","block_type":"box","text":"Interested Trustees","page_number":27,"box":{"x":70,"y":859,"width":138,"height":8}},{"id":"ec7cbb62-7645-41ab-bab9-0b2ad0f631f6","block_type":"box","text":"Robert Fairbairn","page_number":27,"box":{"x":79,"y":874,"width":113,"height":9}},{"id":"c470511e-b668-4948-9232-c7f954761e7b","block_type":"box","text":"......................................","page_number":27,"box":{"x":197,"y":881,"width":303,"height":1}},{"id":"e0ea8e67-cf85-42bf-8af5-0ecd155cbfed","block_type":"box","text":"None None None","page_number":27,"box":{"x":571,"y":874,"width":305,"height":9}},{"id":"41ce2aa5-497c-43a2-9c1e-eca655971ebf","block_type":"box","text":"John M. Perlowski","page_number":27,"box":{"x":78,"y":889,"width":127,"height":9}},{"id":"1c180f99-8853-4b28-b910-bd4623810fbc","block_type":"box","text":"....................................","page_number":27,"box":{"x":213,"y":896,"width":287,"height":2}},{"id":"ae3c6c0c-34a8-4fb9-af5b-737aa78e4422","block_type":"box","text":"None None None","page_number":27,"box":{"x":571,"y":889,"width":305,"height":9}},{"id":"1bee96b1-0ebe-4e9e-9f91-10346d0f7d7a","block_type":"box","text":"I-18","page_number":27,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"cce74e92-59e0-4f41-999c-38d3376f8cc0","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":27,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f7d71a17-e66b-4d2b-96f7-1f7c2d0cd50a","block_type":"box","text":"1","page_number":28,"box":{"x":69,"y":58,"width":3,"height":3}},{"id":"0dfac892-dd46-4463-9181-11658b7fbf80","block_type":"box","text":"For the number of BlackRock-advised Funds from which each Trustee receives compensation, see “Biographical Information” beginning on","page_number":28,"box":{"x":94,"y":58,"width":786,"height":9}},{"id":"331cad41-0886-47f7-900e-e444445aeac6","block_type":"box","text":"page I-13.","page_number":28,"box":{"x":94,"y":68,"width":55,"height":9}},{"id":"75295e9f-5757-40e5-ae2e-1ba5b73d957d","block_type":"box","text":"2","page_number":28,"box":{"x":69,"y":81,"width":3,"height":3}},{"id":"86a2c2af-f5bc-4156-b6f6-9d6373c1beaf","block_type":"box","text":"Compensation includes $292 earned as a consultant to the Independent Trustees for the period April 1, 2026 to July 1, 2026.","page_number":28,"box":{"x":93,"y":80,"width":724,"height":9}},{"id":"cdb9c2c6-5c1f-48b0-81cc-73b9ecae65db","block_type":"box","text":"3","page_number":28,"box":{"x":69,"y":93,"width":3,"height":4}},{"id":"d6e10cf0-7f30-48d5-84ec-847488079713","block_type":"box","text":"Chair of the Audit Committee.","page_number":28,"box":{"x":93,"y":93,"width":168,"height":7}},{"id":"631e66dd-fb8f-4e0b-ad3a-ea906cd70f79","block_type":"box","text":"4","page_number":28,"box":{"x":68,"y":106,"width":4,"height":3}},{"id":"e3960f6a-af3b-4967-9c9f-2fcd160186a5","block_type":"box","text":"Chair of the Governance Committee.","page_number":28,"box":{"x":93,"y":106,"width":206,"height":7}},{"id":"897b33f3-bebe-47ca-b3f3-2c8ba29e5ca1","block_type":"box","text":"5","page_number":28,"box":{"x":69,"y":118,"width":3,"height":4}},{"id":"8a2fcd13-6e8f-4ebc-959a-1f1845ce2171","block_type":"box","text":"Chair of the Performance Oversight Committee.","page_number":28,"box":{"x":93,"y":118,"width":269,"height":9}},{"id":"a2d59bc4-8076-4cc4-854a-30f160e5ccb5","block_type":"box","text":"6","page_number":28,"box":{"x":69,"y":131,"width":3,"height":4}},{"id":"c6bc8c26-b6b2-4f2e-bd27-31057d030d00","block_type":"box","text":"Chair of the Board and Chair of the Ad Hoc Topics Committee.","page_number":28,"box":{"x":93,"y":131,"width":352,"height":9}},{"id":"495f5c8b-271c-468f-92c9-201764b5c5c6","block_type":"box","text":"7","page_number":28,"box":{"x":69,"y":144,"width":3,"height":3}},{"id":"9c81f45c-4be8-4e2a-9fd9-9873c5735f6a","block_type":"box","text":"Chair of the Compliance Committee.","page_number":28,"box":{"x":93,"y":143,"width":205,"height":9}},{"id":"0312b47a-1e3c-4967-994c-b085f4bb17ad","block_type":"box","text":"IV. Management, Advisory and Other Service Arrangements","page_number":28,"box":{"x":69,"y":172,"width":432,"height":11}},{"id":"b523c96a-53b4-4921-9e73-fe4b84181fd9","block_type":"box","text":"The management and sub-advisory services provided by BlackRock and BlackRock International Limited (“BIL”),","page_number":28,"box":{"x":101,"y":195,"width":796,"height":11}},{"id":"d852913f-7da2-42ee-b8c2-2ef684b7e5ab","block_type":"box","text":"and the fees received for such services, are described in the Prospectuses.","page_number":28,"box":{"x":69,"y":210,"width":539,"height":11}},{"id":"3e547bb6-4eed-4268-b7f8-5ff6076c1f2f","block_type":"box","text":"For its management services, BlackRock is entitled to fees, computed daily on a portfolio-by-portfolio basis and","page_number":28,"box":{"x":102,"y":232,"width":794,"height":12}},{"id":"cb3014aa-1b5a-4e47-8bc5-dff78c747f19","block_type":"box","text":"payable monthly. The management fees are based on assets attributable to the Portfolio’s direct investments and","page_number":28,"box":{"x":70,"y":247,"width":813,"height":12}},{"id":"eb304b8c-f1b3-4598-a3a8-3bbb60c43de9","block_type":"box","text":"exclude investments in underlying funds (as defined in the Portfolio’s Prospectuses). BlackRock has also entered into","page_number":28,"box":{"x":69,"y":263,"width":840,"height":11}},{"id":"27d18356-361b-437b-8aac-7380225963ec","block_type":"box","text":"a sub-advisory agreement with BIL (the “Sub-Adviser”) pursuant to which BlackRock pays the Sub-Adviser for services","page_number":28,"box":{"x":69,"y":278,"width":836,"height":11}},{"id":"156deec6-6892-4285-ae2d-03633bd7f282","block_type":"box","text":"it provides a monthly fee at an annual rate equal to a percentage of the advisory fee paid to BlackRock under the","page_number":28,"box":{"x":70,"y":293,"width":806,"height":11}},{"id":"8303eee7-bc9c-4560-802c-715a3ef5a840","block_type":"box","text":"Investment Management Agreement.","page_number":28,"box":{"x":70,"y":308,"width":260,"height":11}},{"id":"4be0f0bb-af32-441f-9a49-50c86384c2e0","block_type":"box","text":"BlackRock renders management services to the Portfolio pursuant to an Investment Management Agreement.","page_number":28,"box":{"x":102,"y":331,"width":782,"height":11}},{"id":"64da78f1-8145-4346-bdba-94e55fd7c3db","block_type":"box","text":"BIL renders sub-advisory services to the Portfolio pursuant to a Sub-Advisory agreement. The Investment","page_number":28,"box":{"x":70,"y":346,"width":748,"height":11}},{"id":"a6685f3d-a8ac-4dd7-bdad-75e462a8eabe","block_type":"box","text":"Management Agreement with BlackRock and the Sub-Advisory Agreement between BlackRock and BIL are collectively","page_number":28,"box":{"x":70,"y":361,"width":833,"height":11}},{"id":"974676c8-4afd-4c03-97f2-cabbb4afccd9","block_type":"box","text":"referred to as the “Advisory Contracts.”","page_number":28,"box":{"x":69,"y":376,"width":281,"height":11}},{"id":"1c33fc4e-28b8-4d54-870d-cb16002a46f9","block_type":"box","text":"Under the Advisory Contracts, BlackRock and BIL are not liable for any error of judgment or mistake of law or for","page_number":28,"box":{"x":102,"y":399,"width":799,"height":11}},{"id":"383b54ac-a00e-4d28-90fb-cfe4bc541501","block_type":"box","text":"any loss suffered by the Trust or the Portfolio in connection with the performance of the Advisory Contracts. Under","page_number":28,"box":{"x":69,"y":414,"width":818,"height":11}},{"id":"27bd7b73-c8f1-4932-a5eb-724b9cb14940","block_type":"box","text":"the Advisory Contracts, BlackRock and BIL are liable for a loss resulting from a breach of fiduciary duty with respect","page_number":28,"box":{"x":68,"y":429,"width":828,"height":11}},{"id":"3b3d6f1c-40a1-4119-b248-a3def8df51e0","block_type":"box","text":"to the receipt of compensation for services or a loss resulting from willful misfeasance, bad faith or gross negligence","page_number":28,"box":{"x":68,"y":444,"width":836,"height":11}},{"id":"6afc5ecf-89e3-4c90-a83e-1b93dce589ce","block_type":"box","text":"in the performance of their respective duties or from reckless disregard of their respective duties and obligations","page_number":28,"box":{"x":70,"y":459,"width":806,"height":11}},{"id":"d66cfe14-4347-4f14-b330-e9607ca81b5f","block_type":"box","text":"thereunder. Each Advisory Contract is terminable as to the Portfolio by vote of the Trust’s Board of Trustees or by the","page_number":28,"box":{"x":68,"y":474,"width":838,"height":11}},{"id":"a23e9f1a-3436-4fac-8230-53c831d682fd","block_type":"box","text":"holders of a majority of the outstanding voting securities of the Portfolio, at any time without penalty, on 60 days’","page_number":28,"box":{"x":69,"y":489,"width":806,"height":12}},{"id":"87211ac6-e5bf-438e-b25b-a1db73683c0b","block_type":"box","text":"written notice to BlackRock or BIL as the case may be. BlackRock and BIL may also terminate their advisory","page_number":28,"box":{"x":68,"y":505,"width":771,"height":11}},{"id":"698208eb-b7be-4f52-a9a5-e7f93367e813","block_type":"box","text":"relationship with respect to a Portfolio on 60 days’ written notice to the Trust. Each of the Advisory Contracts","page_number":28,"box":{"x":69,"y":520,"width":779,"height":11}},{"id":"68df2d47-58cc-45bd-b6fa-35f890f88444","block_type":"box","text":"terminates automatically in the event of its assignment.","page_number":28,"box":{"x":68,"y":535,"width":398,"height":11}},{"id":"16a3b996-41c7-4e0b-bdb0-85cd8f0f86ff","block_type":"box","text":"BlackRock has contractually agreed to waive the management fee with respect to any portion of the Portfolio’s","page_number":28,"box":{"x":102,"y":557,"width":788,"height":12}},{"id":"6719ee35-8de8-40f4-8c59-87f37e9077f8","block_type":"box","text":"assets estimated to be attributable to investments in other equity and fixed-income exchange-traded funds managed","page_number":28,"box":{"x":69,"y":572,"width":829,"height":12}},{"id":"b9579e17-bf7d-47f3-be70-56c10267afa3","block_type":"box","text":"by BlackRock or its affiliates that have a contractual management fee, through June 30, 2028. In addition, BlackRock","page_number":28,"box":{"x":69,"y":588,"width":840,"height":11}},{"id":"34dc2198-f528-47b6-958a-554ff745a73d","block_type":"box","text":"has contractually agreed to waive its management fees by the amount of investment advisory fees the Portfolio pays","page_number":28,"box":{"x":69,"y":603,"width":832,"height":11}},{"id":"4638f3a3-43f6-4054-a562-88c5742d6b87","block_type":"box","text":"to BlackRock indirectly through its investment in money market funds managed by BlackRock or its affiliates, through","page_number":28,"box":{"x":68,"y":618,"width":836,"height":11}},{"id":"0c5ff76f-149c-483c-892c-2fd19be3b2b4","block_type":"box","text":"June 30, 2028. The contractual agreements may be terminated upon 90 days’ notice by a majority of the","page_number":28,"box":{"x":69,"y":633,"width":750,"height":11}},{"id":"e3cd4989-23d3-4a6a-b374-7bb9d7bfe5c4","block_type":"box","text":"Independent Trustees or by a vote of a majority of the outstanding voting securities of the Portfolio.","page_number":28,"box":{"x":70,"y":648,"width":706,"height":11}},{"id":"7b231f88-884c-46df-91dd-10ed03bc9a1c","block_type":"box","text":"Pursuant to the Management Agreement, BlackRock may from time to time, in its sole discretion to the extent","page_number":28,"box":{"x":102,"y":671,"width":784,"height":11}},{"id":"4a08043d-21e9-48a9-8d4e-4a60f449f9f1","block_type":"box","text":"permitted by applicable law, appoint one or more sub-advisers, including, without limitation, affiliates of the Manager,","page_number":28,"box":{"x":70,"y":686,"width":834,"height":11}},{"id":"fd823a77-a9ba-4a33-8b7e-a968e8a7984e","block_type":"box","text":"to perform investment advisory services with respect to the Portfolio. In addition, the Manager may delegate certain","page_number":28,"box":{"x":68,"y":701,"width":831,"height":11}},{"id":"d5cdcec3-8ba6-4070-a931-4a0aa3a02564","block_type":"box","text":"of its investment advisory functions under the Management Agreement to one or more of its affiliates to the extent","page_number":28,"box":{"x":69,"y":716,"width":821,"height":11}},{"id":"eb283155-2c35-422b-8dd7-704f43188873","block_type":"box","text":"permitted by applicable law. BlackRock may terminate any or all sub-advisers or such delegation arrangements in its","page_number":28,"box":{"x":70,"y":731,"width":827,"height":12}},{"id":"6b9ddb52-690b-48c2-bb0a-ccfc26978ac1","block_type":"box","text":"sole discretion at any time to the extent permitted by applicable law.","page_number":28,"box":{"x":69,"y":747,"width":486,"height":11}},{"id":"2b6cd406-4f37-4dc2-87f2-c953314da274","block_type":"box","text":"Set forth below are the total management fees paid by the Trust to BlackRock (which include amounts paid by","page_number":28,"box":{"x":102,"y":769,"width":785,"height":11}},{"id":"c85a9202-e7ed-4a62-b010-2ba927bee6cb","block_type":"box","text":"BlackRock to BIL) for services provided to the Portfolio for the periods shown, and BlackRock waived management","page_number":28,"box":{"x":70,"y":784,"width":815,"height":11}},{"id":"0c5e1dcf-789a-4fcc-8ac9-134ffc1aeec2","block_type":"box","text":"fees and reimbursed expenses, as follows:","page_number":28,"box":{"x":68,"y":799,"width":306,"height":11}},{"id":"191bd88c-a69d-40c6-9c28-bcd96dd4aca1","block_type":"box","text":"Fees Paid to","page_number":28,"box":{"x":428,"y":828,"width":72,"height":7}},{"id":"6449a157-f26d-4f3b-9b75-2430f6fccd1b","block_type":"box","text":"BlackRock Fees Waived by BlackRock Fees Reimbursed by BlackRock","page_number":28,"box":{"x":433,"y":838,"width":477,"height":8}},{"id":"ac9bbdd1-fd90-45b1-adc5-d53a9915e7cf","block_type":"box","text":"Fiscal Year Ended May 31, 2026","page_number":28,"box":{"x":70,"y":855,"width":230,"height":11}},{"id":"3fd8c824-4d4d-491b-a062-4909549c88b6","block_type":"box","text":". . . . . . . . . . . $5,","page_number":28,"box":{"x":306,"y":855,"width":137,"height":11}},{"id":"83327f0e-4555-484d-b759-d6c4c066aa33","block_type":"box","text":"657,152 $5,658 $0","page_number":28,"box":{"x":445,"y":855,"width":381,"height":11}},{"id":"7385053a-7e4c-4976-bbd4-db06967f91c7","block_type":"box","text":"Fiscal Year Ended May 31, 2025","page_number":28,"box":{"x":70,"y":871,"width":230,"height":11}},{"id":"c2841e16-81ff-423e-9e68-78f8d3da853a","block_type":"box","text":". . . . . . . . . . . $6,","page_number":28,"box":{"x":306,"y":870,"width":137,"height":11}},{"id":"38ed3644-ba5f-43a0-965a-b2ed91f590f2","block_type":"box","text":"630,014 $2,727 $0","page_number":28,"box":{"x":445,"y":870,"width":381,"height":11}},{"id":"851f556e-8084-4b66-8b17-639e353e0369","block_type":"box","text":"Fiscal Year Ended May 31, 2024","page_number":28,"box":{"x":70,"y":886,"width":230,"height":11}},{"id":"c3a0cdc3-5a72-4eb3-b4ca-25a1efad9c9b","block_type":"box","text":". . . . . . . . . . . $7,","page_number":28,"box":{"x":306,"y":885,"width":137,"height":11}},{"id":"c4cde893-7e14-4a93-ba86-b10ba5147479","block_type":"box","text":"502,217 $6,048 $0","page_number":28,"box":{"x":445,"y":885,"width":381,"height":11}},{"id":"19f13c3a-09aa-487c-9bd7-e177c904e704","block_type":"box","text":"I-19","page_number":28,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"ceb9dec6-9763-4ba4-b68f-969ace8ff8f9","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":28,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c15a24d6-fc25-4690-b7ea-2aa6da7f6111","block_type":"box","text":"Administration Agreement","page_number":29,"box":{"x":68,"y":45,"width":191,"height":11}},{"id":"bfe4925b-d3e1-4bcd-84ca-d834f029dd41","block_type":"box","text":"BlackRock serves as the Portfolio’s administrator pursuant to an administration agreement (the “Administration","page_number":29,"box":{"x":102,"y":67,"width":797,"height":12}},{"id":"6bcedff1-7c35-4bdf-b00c-1b54820ead26","block_type":"box","text":"Agreement”). BlackRock has agreed to maintain office facilities for the Portfolio; furnish the Portfolio with clerical,","page_number":29,"box":{"x":68,"y":82,"width":813,"height":12}},{"id":"e4a91d83-0769-4df9-b690-c29f2cb98b5a","block_type":"box","text":"bookkeeping and administrative services; oversee the determination and publication of the Portfolio’s net asset","page_number":29,"box":{"x":69,"y":98,"width":799,"height":11}},{"id":"41ce6abb-24bc-43a1-b8b6-446c5bf2309a","block_type":"box","text":"value; oversee the preparation and filing of Federal, state and local income tax returns; prepare certain reports","page_number":29,"box":{"x":68,"y":113,"width":793,"height":11}},{"id":"5fd4ab07-b074-47bd-80e8-50169f3bddb3","block_type":"box","text":"required by regulatory authorities; calculate various contractual expenses; determine the amount of dividends and","page_number":29,"box":{"x":69,"y":128,"width":812,"height":11}},{"id":"79b78dd6-0025-4bd9-b75a-b8ec12e7784d","block_type":"box","text":"distributions available for payment by the Portfolio to its shareholders; prepare and arrange for the printing of","page_number":29,"box":{"x":69,"y":143,"width":781,"height":11}},{"id":"c474d826-f704-4840-89cd-0acfd94fdaee","block_type":"box","text":"dividend notices to shareholders; provide Portfolio service providers with such information as is required to effect the","page_number":29,"box":{"x":69,"y":158,"width":839,"height":11}},{"id":"c0a63342-f913-44cb-a3d5-d66800ab7087","block_type":"box","text":"payment of dividends and distributions; and serve as liaison with the Trust’s officers, independent accountants, legal","page_number":29,"box":{"x":70,"y":173,"width":836,"height":11}},{"id":"1a1c6d00-7a16-433c-a2e5-7a75428eafa3","block_type":"box","text":"counsel, custodian, accounting agent and transfer and dividend disbursing agent in establishing the accounting","page_number":29,"box":{"x":69,"y":188,"width":793,"height":12}},{"id":"82ddd810-983b-485d-9438-ce4e8e1244ed","block_type":"box","text":"policies of the Portfolio and monitoring financial and shareholder accounting services. BlackRock may from time to","page_number":29,"box":{"x":70,"y":203,"width":817,"height":12}},{"id":"89bc5806-3497-424f-8111-3f981d4e2a92","block_type":"box","text":"time voluntarily waive administration fees with respect to the Portfolio and may voluntarily reimburse the Portfolio for","page_number":29,"box":{"x":68,"y":218,"width":833,"height":12}},{"id":"25d79950-b170-467e-8cf8-9c9a59a21f2d","block_type":"box","text":"expenses.","page_number":29,"box":{"x":69,"y":236,"width":71,"height":9}},{"id":"72980683-dd12-427f-bcf4-f297e668701a","block_type":"box","text":"Under the Administration Agreement, the Trust, on behalf of the Portfolio, pays to BlackRock a fee, computed","page_number":29,"box":{"x":102,"y":256,"width":779,"height":12}},{"id":"3611ac3b-ca74-4955-927c-78bd7f787601","block_type":"box","text":"daily and payable monthly, at an aggregate annual rate of (i) 0.0425% of the first $500 million of the Portfolio’s","page_number":29,"box":{"x":69,"y":271,"width":795,"height":12}},{"id":"f915f0a8-50c1-4125-ae39-d297ab5668f6","block_type":"box","text":"average daily net assets, 0.040% of the next $500 million of the Portfolio’s average daily net assets, 0.0375% of the","page_number":29,"box":{"x":69,"y":286,"width":839,"height":12}},{"id":"1f5f2869-cb9f-4e89-b849-46c5aa2b1011","block_type":"box","text":"next $1 billion of the Portfolio’s average daily net assets, 0.035% of the next $2 billion of the Portfolio’s average","page_number":29,"box":{"x":69,"y":301,"width":807,"height":12}},{"id":"6fad4c1e-a6e4-4270-8e4e-ed5152ee18c8","block_type":"box","text":"daily net assets, 0.0325% of the next $9 billion of the Portfolio’s average daily net assets and 0.030% of the","page_number":29,"box":{"x":69,"y":316,"width":781,"height":12}},{"id":"0cb8b272-fac9-4198-85c5-40a85b969e86","block_type":"box","text":"average daily net assets of the Portfolio in excess of $13 billion and (ii) 0.020% of average daily net assets allocated","page_number":29,"box":{"x":69,"y":331,"width":836,"height":12}},{"id":"915d1412-2c25-4760-af6c-edb704b77585","block_type":"box","text":"to each class of shares of the Portfolio.","page_number":29,"box":{"x":68,"y":347,"width":283,"height":9}},{"id":"385ef123-1cb8-4868-8d4b-811dd2d9b9c9","block_type":"box","text":"For the periods shown, the Portfolio paid BlackRock administration fees, and BlackRock waived administration","page_number":29,"box":{"x":102,"y":370,"width":785,"height":11}},{"id":"dbabf553-ea80-4863-ac64-2140d2e795b2","block_type":"box","text":"fees and reimbursed expenses, as follows:","page_number":29,"box":{"x":68,"y":385,"width":306,"height":11}},{"id":"765aaa75-efc5-42c4-9f94-d13f90db9653","block_type":"box","text":"Fees Paid to BlackRock","page_number":29,"box":{"x":660,"y":423,"width":140,"height":7}},{"id":"876ff385-fb46-4a1d-bafa-91c14404b113","block_type":"box","text":"Fees Waived","page_number":29,"box":{"x":833,"y":413,"width":72,"height":7}},{"id":"2a87a439-8a67-438f-8fb2-d3762f3018e9","block_type":"box","text":"by BlackRock","page_number":29,"box":{"x":830,"y":423,"width":80,"height":9}},{"id":"af4567b7-a90c-46de-992d-8349d14bf676","block_type":"box","text":"Fiscal Year Ended May 31, 2026 . .","page_number":29,"box":{"x":70,"y":441,"width":249,"height":11}},{"id":"20075d25-f130-4ee1-8cce-04886446e5d3","block_type":"box","text":"......................................","page_number":29,"box":{"x":325,"y":448,"width":304,"height":2}},{"id":"80c20ad8-c9c5-4722-b74f-5f7e32e3b439","block_type":"box","text":"$578,719 $0","page_number":29,"box":{"x":694,"y":440,"width":184,"height":11}},{"id":"9a19f3ef-4fd0-4448-acdd-82d1d41205dd","block_type":"box","text":"Fiscal Year Ended May 31, 2025 . .","page_number":29,"box":{"x":70,"y":456,"width":249,"height":11}},{"id":"ce9d625e-ab19-4b14-aeb9-9eced0d38d39","block_type":"box","text":"......................................","page_number":29,"box":{"x":325,"y":463,"width":304,"height":2}},{"id":"45d4acf8-20e9-488f-81ef-141667e6dada","block_type":"box","text":"$678,746 $0","page_number":29,"box":{"x":694,"y":455,"width":184,"height":11}},{"id":"3eebeac2-d724-431e-aaea-94432d872c8a","block_type":"box","text":"Fiscal Year Ended May 31, 2024 . .","page_number":29,"box":{"x":70,"y":471,"width":249,"height":11}},{"id":"cd866c93-9631-493b-a5e8-948d5b7ece58","block_type":"box","text":"......................................","page_number":29,"box":{"x":325,"y":479,"width":304,"height":1}},{"id":"e22a4b30-5456-434f-930c-34a6f9b07421","block_type":"box","text":"$769,654 $0","page_number":29,"box":{"x":694,"y":470,"width":184,"height":12}},{"id":"7db9e038-b513-4625-a2c4-89aa8ef17995","block_type":"box","text":"The Trust and its service providers may engage third party plan administrators who provide trustee,","page_number":29,"box":{"x":101,"y":495,"width":708,"height":11}},{"id":"e1b44828-76b5-4c9a-acfb-d49e6bdb692d","block_type":"box","text":"administrative and recordkeeping services for certain employee benefit, profit-sharing and retirement plans as agents","page_number":29,"box":{"x":69,"y":510,"width":838,"height":11}},{"id":"4a9ae5ed-ac3f-4c3a-9ea9-49b70a1543ef","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":29,"box":{"x":68,"y":525,"width":800,"height":12}},{"id":"6c71f91f-a3ae-49d0-8847-20e76c676a6a","block_type":"box","text":"shares of the Portfolio.","page_number":29,"box":{"x":69,"y":540,"width":163,"height":9}},{"id":"3917bd09-1ee8-4d1e-9cbc-0966a61a7a47","block_type":"box","text":"In addition, pursuant to a Shareholders’ Administrative Services Agreement, BlackRock provides certain","page_number":29,"box":{"x":102,"y":563,"width":740,"height":11}},{"id":"dcd8acbb-e580-4382-881b-6a83cac95317","block_type":"box","text":"shareholder liaison services in connection with the Trust’s investor service center. The Trust, on behalf of the","page_number":29,"box":{"x":69,"y":578,"width":781,"height":11}},{"id":"e9c54a1d-c680-4709-b08a-7a40b44e8175","block_type":"box","text":"Portfolio, reimburses BlackRock for its costs in maintaining the service center, which costs include, among other","page_number":29,"box":{"x":69,"y":593,"width":805,"height":12}},{"id":"5bb6dae1-9b55-4bcb-b74b-b8e127ae6f40","block_type":"box","text":"things, employee salaries, leasehold expenses, and other out-of-pocket expenses.","page_number":29,"box":{"x":68,"y":608,"width":585,"height":12}},{"id":"e92ea083-b83f-45f1-a2ae-6f1945542e26","block_type":"box","text":"For the periods shown, the Trust, on behalf of the Portfolio, reimbursed to BlackRock fees for shareholder liaison","page_number":29,"box":{"x":102,"y":631,"width":805,"height":11}},{"id":"e809ad90-0a64-44c5-b8b7-0e38be014b21","block_type":"box","text":"services pursuant to such agreement as follows:","page_number":29,"box":{"x":69,"y":646,"width":346,"height":11}},{"id":"257bf7ce-86be-4ea6-8578-9001ae009316","block_type":"box","text":"Fees Paid to BlackRock Fees Waived by BlackRock","page_number":29,"box":{"x":583,"y":675,"width":327,"height":8}},{"id":"168843e8-eba6-4204-b6c0-b5a78bf0e56e","block_type":"box","text":"Fiscal Year Ended May 31, 2026. . .","page_number":29,"box":{"x":70,"y":692,"width":253,"height":11}},{"id":"4786d51e-8057-4f77-8322-5e8fa83ccc3b","block_type":"box","text":"............................","page_number":29,"box":{"x":329,"y":700,"width":222,"height":1}},{"id":"fedc1d37-c7d7-40a1-a9a9-e8577a71bcaf","block_type":"box","text":"$12,203 $0","page_number":29,"box":{"x":621,"y":692,"width":219,"height":11}},{"id":"5521b485-5dff-40df-bbcd-82ebef1035bf","block_type":"box","text":"Fiscal Year Ended May 31, 2025. . .","page_number":29,"box":{"x":70,"y":707,"width":253,"height":11}},{"id":"eefdd729-8339-4ff8-844b-93948831024f","block_type":"box","text":"............................","page_number":29,"box":{"x":329,"y":715,"width":222,"height":1}},{"id":"a9d03ac1-2e2c-4333-9027-4eeaef330874","block_type":"box","text":"$11,782 $0","page_number":29,"box":{"x":621,"y":707,"width":219,"height":11}},{"id":"1f471a67-d79b-48d6-806a-9d7e5a9e53a2","block_type":"box","text":"Fiscal Year Ended May 31, 2024. . .","page_number":29,"box":{"x":70,"y":723,"width":253,"height":11}},{"id":"77c8fedd-cb46-4396-a29f-35bd34f5058d","block_type":"box","text":"............................","page_number":29,"box":{"x":329,"y":730,"width":222,"height":1}},{"id":"b776388d-4ef1-491a-a00b-56bcbe7a5690","block_type":"box","text":"$13,106 $0","page_number":29,"box":{"x":621,"y":722,"width":219,"height":11}},{"id":"733a6159-bd18-4e71-898f-f84130c4c0d7","block_type":"box","text":"Information Regarding the Portfolio Managers","page_number":29,"box":{"x":69,"y":754,"width":335,"height":11}},{"id":"0cb5a2bb-3a07-4453-a3d8-094ef3bde77d","block_type":"box","text":"Zeshan Azam and Wendy Agnew, CFA are the Portfolio’s portfolio managers and are jointly and primarily","page_number":29,"box":{"x":101,"y":777,"width":739,"height":11}},{"id":"f4c17ee8-8af1-42a0-bbd3-7248378b75a5","block_type":"box","text":"responsible for the day-to-day management of the Portfolio’s portfolio.","page_number":29,"box":{"x":69,"y":792,"width":499,"height":11}},{"id":"91c85c92-0e86-48d0-98df-c0a319b0474a","block_type":"box","text":"Other Funds and Accounts Managed","page_number":29,"box":{"x":70,"y":822,"width":265,"height":11}},{"id":"8186de1b-b1d5-4a62-bc6b-5b0c5c0fbc1c","block_type":"box","text":"The following table sets forth information about funds and accounts other than the Portfolio for which the","page_number":29,"box":{"x":101,"y":845,"width":752,"height":11}},{"id":"ae9fb4a1-bae7-4842-9b4b-6507e91c5a94","block_type":"box","text":"Portfolio’s portfolio managers are primarily responsible for the day-to-day portfolio management as of May 31, 2026.","page_number":29,"box":{"x":69,"y":860,"width":834,"height":11}},{"id":"7bce6ef0-f739-486b-b6a3-0906d7e1a593","block_type":"box","text":"I-20","page_number":29,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"bab167e7-29ee-4c72-aba0-e9bdb8863ad5","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":29,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2f43245e-3edd-489e-abdf-ea99fda73a73","block_type":"box","text":"Number of Other Accounts Managed","page_number":30,"box":{"x":378,"y":49,"width":211,"height":9}},{"id":"33b2fdd7-068f-4020-9de6-0f78ff754e19","block_type":"box","text":"and Assets by Account Type","page_number":30,"box":{"x":401,"y":59,"width":165,"height":9}},{"id":"984cd988-20be-45c9-9d12-93502f7dab07","block_type":"box","text":"Number of Other Accounts and Assets","page_number":30,"box":{"x":656,"y":49,"width":222,"height":7}},{"id":"9946980d-bb49-4eb0-b348-8010573d9c5a","block_type":"box","text":"for Which Advisory Fee is Performance-Based","page_number":30,"box":{"x":634,"y":59,"width":265,"height":9}},{"id":"a85cdb95-f0a7-48e4-96a0-fb87067ef302","block_type":"box","text":"Name of Portfolio Manager","page_number":30,"box":{"x":74,"y":102,"width":157,"height":9}},{"id":"63df37f6-5441-400e-8e32-80f69eb5620a","block_type":"box","text":"Other","page_number":30,"box":{"x":373,"y":72,"width":32,"height":7}},{"id":"84d3af07-d9df-4f2a-9bc5-7cb4a8061b49","block_type":"box","text":"Registered","page_number":30,"box":{"x":358,"y":82,"width":62,"height":9}},{"id":"ed735292-e3e3-4eae-bf8b-e97e816842d1","block_type":"box","text":"Investment","page_number":30,"box":{"x":357,"y":92,"width":64,"height":7}},{"id":"228e991e-c9bf-428d-9688-3aa0cf17dba5","block_type":"box","text":"Companies","page_number":30,"box":{"x":357,"y":102,"width":64,"height":9}},{"id":"5eb20b0f-8971-47a0-9733-12083d106cd9","block_type":"box","text":"Other Pooled","page_number":30,"box":{"x":446,"y":82,"width":74,"height":7}},{"id":"ecea510e-061a-4591-bb13-acc4e5e3e8d8","block_type":"box","text":"Investment","page_number":30,"box":{"x":451,"y":92,"width":65,"height":7}},{"id":"81bc93c9-74ff-4dc2-a0c2-4ab8caa87095","block_type":"box","text":"Vehicles","page_number":30,"box":{"x":459,"y":102,"width":48,"height":7}},{"id":"341bdf4c-0adc-497c-9330-8bb6f8addfe3","block_type":"box","text":"Other","page_number":30,"box":{"x":562,"y":92,"width":31,"height":7}},{"id":"c9af76ef-23c9-4dd4-9290-6152858cd64d","block_type":"box","text":"Accounts","page_number":30,"box":{"x":550,"y":102,"width":55,"height":7}},{"id":"f61ffe80-e135-48f7-b59b-e410a912d124","block_type":"box","text":"Other","page_number":30,"box":{"x":653,"y":72,"width":32,"height":7}},{"id":"2757b669-2499-41ef-964d-1b197d2a616c","block_type":"box","text":"Registered","page_number":30,"box":{"x":638,"y":82,"width":62,"height":9}},{"id":"4e8a6350-984e-493e-b7c3-42a195e5833c","block_type":"box","text":"Investment","page_number":30,"box":{"x":637,"y":92,"width":64,"height":7}},{"id":"21f98e82-4c18-4c9d-a20f-57d3a24e5878","block_type":"box","text":"Companies","page_number":30,"box":{"x":637,"y":102,"width":63,"height":9}},{"id":"957de9a7-cd57-4f9e-a696-2216e47efa6f","block_type":"box","text":"Other Pooled","page_number":30,"box":{"x":725,"y":82,"width":75,"height":7}},{"id":"259e6bbb-6da1-4197-b554-3df373e01993","block_type":"box","text":"Investment","page_number":30,"box":{"x":731,"y":92,"width":64,"height":7}},{"id":"6c7c2155-70c6-4b54-bb0a-4807532c64b0","block_type":"box","text":"Vehicles","page_number":30,"box":{"x":738,"y":102,"width":49,"height":7}},{"id":"8ebaa553-58dc-4ba1-9317-35d9efb357e6","block_type":"box","text":"Other","page_number":30,"box":{"x":845,"y":92,"width":32,"height":7}},{"id":"bef18eac-3e82-41cc-a2cb-57421a7d51f2","block_type":"box","text":"Accounts","page_number":30,"box":{"x":833,"y":102,"width":55,"height":7}},{"id":"7dbccf99-d125-4152-952a-ba0b95f710cf","block_type":"box","text":"Wendy Agnew, CFA 7 6 2 0 0 1","page_number":30,"box":{"x":73,"y":116,"width":791,"height":9}},{"id":"f3f0dafb-6f55-4a5e-8874-05d4d178bdd7","block_type":"box","text":"$3.41 Billion $2.77 Billion $1.62 Billion $0 $0 $1.54 Billion","page_number":30,"box":{"x":353,"y":128,"width":544,"height":8}},{"id":"283b42f7-b8ba-4c04-b081-a31c7b8f10ee","block_type":"box","text":"Zeshan Azam 7 6 2 0 0 1","page_number":30,"box":{"x":73,"y":141,"width":791,"height":7}},{"id":"5ce06729-f1a0-453f-98bb-dfd3c52c4c7b","block_type":"box","text":"$3.41 Billion $2.77 Billion $1.62 Billion $0 $0 $1.54 Billion","page_number":30,"box":{"x":353,"y":153,"width":544,"height":8}},{"id":"ec99b0ea-7534-4a21-b4dc-7a865b78e6a3","block_type":"box","text":"Por tfolio Manager Compensation Overview","page_number":30,"box":{"x":69,"y":188,"width":304,"height":11}},{"id":"00d59860-ac67-443e-86fc-ef46218a0ec9","block_type":"box","text":"The discussion below describes the portfolio managers’ compensation as of May 31, 2026.","page_number":30,"box":{"x":101,"y":210,"width":656,"height":12}},{"id":"73607ce3-3786-4c24-9e8d-368eef047228","block_type":"box","text":"BlackRock’s financial arrangements with its portfolio managers, its competitive compensation and its career","page_number":30,"box":{"x":102,"y":233,"width":774,"height":11}},{"id":"cac09852-ff14-4f5d-9e65-49bbbf670ba4","block_type":"box","text":"path emphasis at all levels reflect the value senior management places on key resources. Compensation may include","page_number":30,"box":{"x":70,"y":248,"width":837,"height":11}},{"id":"9f3b6086-2576-4cee-b862-8e8fac4e7f9a","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":30,"box":{"x":69,"y":263,"width":823,"height":11}},{"id":"691a180c-16fd-416d-9642-b9bf114c5dfc","block_type":"box","text":"compensation include a base salary, a performance-based discretionary bonus, participation in various benefits","page_number":30,"box":{"x":69,"y":278,"width":799,"height":11}},{"id":"78451e58-9cdd-4a13-a7c5-a46cfbf5f879","block_type":"box","text":"programs and one or more of the incentive compensation programs established by BlackRock.","page_number":30,"box":{"x":70,"y":293,"width":670,"height":12}},{"id":"44278e6b-55c4-45f5-9173-6832bd195ab2","block_type":"box","text":"Base Compensation.","page_number":30,"box":{"x":102,"y":316,"width":148,"height":11}},{"id":"b9c1e713-cb7b-4994-a4ab-59e7154d7c55","block_type":"box","text":"Generally, portfolio managers receive base compensation based on their position with the","page_number":30,"box":{"x":257,"y":316,"width":640,"height":11}},{"id":"3415a623-1e4f-4d33-91a8-36259df1c0c8","block_type":"box","text":"firm.","page_number":30,"box":{"x":68,"y":331,"width":32,"height":9}},{"id":"f5f903ca-991d-4cbe-b7e8-7ee363b28be1","block_type":"box","text":"Discretionary Incentive Compensation.","page_number":30,"box":{"x":102,"y":354,"width":281,"height":11}},{"id":"652490d9-37ea-4f3b-827d-61bf57524b94","block_type":"box","text":"Generally, discretionary incentive compensation for Fundamental Equities portfolio managers is based on a","page_number":30,"box":{"x":102,"y":377,"width":763,"height":11}},{"id":"275fc1a8-bbf8-4069-a504-d4e2d8fe69e6","block_type":"box","text":"formulaic compensation program. BlackRock’s formulaic portfolio manager compensation program is based on team","page_number":30,"box":{"x":68,"y":392,"width":832,"height":11}},{"id":"dc84fd5e-670a-4ad8-9532-2f1732baf298","block_type":"box","text":"revenue and pre-tax investment performance relative to appropriate competitors or benchmarks over 3- and 5-year","page_number":30,"box":{"x":69,"y":407,"width":815,"height":11}},{"id":"37cf7ce2-3611-4dff-b9a0-bd387b9049f6","block_type":"box","text":"performance periods, as applicable. In most cases, these benchmarks are the same as the benchmark or","page_number":30,"box":{"x":70,"y":422,"width":757,"height":11}},{"id":"ddfc77ca-8ef8-4d6c-9d7f-e59458243f77","block_type":"box","text":"benchmarks against which the performance of the Portfolio or other accounts managed by the portfolio managers are","page_number":30,"box":{"x":69,"y":437,"width":840,"height":11}},{"id":"cee5b33d-5216-4adf-8051-45dfd84101d2","block_type":"box","text":"measured. BlackRock’s global compensation team determines the benchmarks or rankings against which the","page_number":30,"box":{"x":69,"y":452,"width":780,"height":11}},{"id":"11dc9d0c-4c59-4993-b75c-82fe38e19f93","block_type":"box","text":"performance of the Portfolio and other accounts managed by each portfolio management team is compared and the","page_number":30,"box":{"x":70,"y":467,"width":828,"height":12}},{"id":"30ef8d86-c7b2-481b-b6b1-1df8a8cc0a2f","block_type":"box","text":"period of time over which performance is evaluated. With respect to these portfolio managers, such benchmarks for","page_number":30,"box":{"x":70,"y":482,"width":828,"height":12}},{"id":"6b373ec9-1221-496a-9431-b03424d94ba3","block_type":"box","text":"the Portfolio and other accounts are: MSCI All Country World ex US Index (Net TR); MSCI All Country World Index (Net","page_number":30,"box":{"x":68,"y":498,"width":836,"height":11}},{"id":"29bbd465-44e2-4aa9-b550-0766d9d1d43d","block_type":"box","text":"Total Return); MSCI ACWI HIGH DIVIDEND YIELD - NET USD; MSCI All Country World Net TR Index - in GBP.","page_number":30,"box":{"x":68,"y":513,"width":753,"height":11}},{"id":"2bcfe650-e560-414f-85bc-ea295d50eccc","block_type":"box","text":"A smaller element of portfolio manager discretionary compensation may include consideration of: financial","page_number":30,"box":{"x":101,"y":535,"width":759,"height":12}},{"id":"ed27b78a-6f8f-430a-806a-261e91b57a71","block_type":"box","text":"results, expense control, profit margins, strategic planning and implementation, quality of client service, market","page_number":30,"box":{"x":69,"y":550,"width":798,"height":12}},{"id":"3cc09925-b11c-47b4-9507-94730c787b10","block_type":"box","text":"share, corporate reputation, capital allocation, compliance and risk control, leadership, technology and innovation.","page_number":30,"box":{"x":69,"y":566,"width":814,"height":11}},{"id":"0f0d32a4-4aca-4c8b-8d70-a55be1bfb052","block_type":"box","text":"These factors are considered collectively by BlackRock management and the relevant Chief Investment Officers.","page_number":30,"box":{"x":68,"y":581,"width":798,"height":11}},{"id":"f6241aa0-a623-446a-bfd0-0ef08ffe4583","block_type":"box","text":"Distribution of Discretionary Incentive Compensation.","page_number":30,"box":{"x":102,"y":603,"width":389,"height":11}},{"id":"9ecde380-1b5f-491f-bb3a-27f45ec4b2d0","block_type":"box","text":"Discretionary incentive compensation is distributed to","page_number":30,"box":{"x":499,"y":604,"width":383,"height":11}},{"id":"13f4d63d-cf13-4ac2-bde8-310e2c8ab335","block_type":"box","text":"portfolio managers in a combination of cash, deferred BlackRock, Inc. stock awards, and/or deferred cash awards","page_number":30,"box":{"x":70,"y":618,"width":815,"height":12}},{"id":"19fbcfdb-845e-47f2-afc8-261d44cb7fd1","block_type":"box","text":"that notionally track the return of certain BlackRock investment products.","page_number":30,"box":{"x":68,"y":634,"width":522,"height":11}},{"id":"ba40c4c6-068c-437d-a273-713fe426de62","block_type":"box","text":"Portfolio managers receive their annual discretionary incentive compensation in the form of cash. Portfolio","page_number":30,"box":{"x":102,"y":656,"width":760,"height":12}},{"id":"87806ee8-2b6e-4cb4-baa4-cc7b99cc9146","block_type":"box","text":"managers whose total compensation is above a specified threshold also receive deferred BlackRock, Inc. stock","page_number":30,"box":{"x":69,"y":671,"width":795,"height":12}},{"id":"80cdb4cb-7282-4532-b455-79828553d765","block_type":"box","text":"awards annually as part of their discretionary incentive compensation. Paying a portion of discretionary incentive","page_number":30,"box":{"x":69,"y":686,"width":805,"height":12}},{"id":"7e3f7271-a026-4e4f-b56a-2ebcd7585348","block_type":"box","text":"compensation in the form of deferred BlackRock, Inc. stock puts compensation earned by a portfolio manager for a","page_number":30,"box":{"x":69,"y":702,"width":822,"height":11}},{"id":"98212a7a-bc67-401b-acf1-6531ffaf9021","block_type":"box","text":"given year “at risk” based on BlackRock’s ability to sustain and improve its performance over future periods. In some","page_number":30,"box":{"x":68,"y":717,"width":839,"height":11}},{"id":"8822f813-35c0-4b73-8c4b-e292fda5065f","block_type":"box","text":"cases, additional deferred BlackRock, Inc. stock may be granted to certain key employees as part of a long-term","page_number":30,"box":{"x":69,"y":732,"width":802,"height":11}},{"id":"7319bdac-682b-48e6-b7c6-58567d3b9a52","block_type":"box","text":"incentive award to aid in retention, align interests with long-term shareholders and motivate performance. Deferred","page_number":30,"box":{"x":70,"y":747,"width":820,"height":11}},{"id":"ec2b0a67-165c-4b6b-8cc6-3b9beefba2c5","block_type":"box","text":"BlackRock, Inc. stock awards are generally granted in the form of BlackRock, Inc. restricted stock units that vest","page_number":30,"box":{"x":70,"y":762,"width":801,"height":11}},{"id":"6675a7dc-17bc-4ed5-839e-1752b1268672","block_type":"box","text":"pursuant to the terms of the applicable plan and, once vested, settle in BlackRock, Inc. common stock. The portfolio","page_number":30,"box":{"x":70,"y":777,"width":831,"height":11}},{"id":"aad5ccbf-f903-4739-a8a6-8302730aeac2","block_type":"box","text":"managers of this Portfolio have deferred BlackRock, Inc. stock awards.","page_number":30,"box":{"x":69,"y":792,"width":505,"height":12}},{"id":"7eef6903-a3c2-4fde-bbbb-3cd91a09395e","block_type":"box","text":"For certain portfolio managers, a portion of the discretionary incentive compensation is also distributed in the","page_number":30,"box":{"x":102,"y":815,"width":785,"height":11}},{"id":"44acaed2-b4bd-403d-9308-617aeedd6fd0","block_type":"box","text":"form of deferred cash awards that notionally track the returns of select BlackRock investment products they manage,","page_number":30,"box":{"x":68,"y":830,"width":836,"height":11}},{"id":"5d6b7ac2-c38a-417b-bdf4-de4eefe9f97b","block_type":"box","text":"which provides direct alignment of portfolio manager discretionary incentive compensation with investment product","page_number":30,"box":{"x":68,"y":845,"width":821,"height":12}},{"id":"1734f0e1-8f10-4ff0-91d8-067b1769ecb7","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":30,"box":{"x":69,"y":860,"width":829,"height":12}},{"id":"3e964e10-6f16-496b-a8a0-d9ce662288f8","block_type":"box","text":"portfolio managers who manage specified products and whose total compensation is above a specified threshold are","page_number":30,"box":{"x":70,"y":875,"width":835,"height":12}},{"id":"69c6250f-f3da-43d8-8943-05752ae39c01","block_type":"box","text":"eligible to participate in the deferred cash award program.","page_number":30,"box":{"x":69,"y":891,"width":414,"height":11}},{"id":"b087a728-c449-4290-8ad2-0b1756a81081","block_type":"box","text":"I-21","page_number":30,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"e5f340f8-64bb-4fb7-bc2e-67554fd34c76","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":30,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d3a6b70d-b907-4569-b822-c09f903a1e4f","block_type":"box","text":"Other Compensation Benefits.","page_number":31,"box":{"x":101,"y":45,"width":218,"height":11}},{"id":"5bad864a-a096-43da-9c8e-ad466de228f3","block_type":"box","text":"In addition to base salary and discretionary incentive compensation, portfolio","page_number":31,"box":{"x":327,"y":45,"width":552,"height":11}},{"id":"de449250-432f-45a7-8e52-fb9d8d378c60","block_type":"box","text":"managers may be eligible to receive or participate in one or more of the following:","page_number":31,"box":{"x":69,"y":60,"width":582,"height":11}},{"id":"9c5e2479-cefa-435b-b98c-b8981870d186","block_type":"box","text":"Incentive Savings Plans","page_number":31,"box":{"x":102,"y":83,"width":167,"height":11}},{"id":"cc0720ef-1650-4251-8533-d448e92424fb","block_type":"box","text":"— BlackRock, Inc. has created a variety of incentive savings plans in which BlackRock","page_number":31,"box":{"x":274,"y":82,"width":614,"height":12}},{"id":"8f9138ee-3a6c-42b7-94ba-318a57483fd9","block_type":"box","text":"employees are eligible to participate, including a 401(k) plan, the BlackRock Retirement Savings Plan (RSP), and the","page_number":31,"box":{"x":69,"y":98,"width":831,"height":11}},{"id":"8b276558-012c-4757-9f33-6fe1fd8156c4","block_type":"box","text":"BlackRock Employee Stock Purchase Plan (ESPP). The employer contribution components of the RSP include a","page_number":31,"box":{"x":70,"y":113,"width":785,"height":11}},{"id":"16970479-f59d-4cde-ac7c-7eda4bb254cb","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":31,"box":{"x":69,"y":127,"width":830,"height":12}},{"id":"f4aeea59-88b4-4bad-8441-47289f1482a6","block_type":"box","text":"company retirement contribution equal to 3-5% of eligible compensation up to the Internal Revenue Service limit","page_number":31,"box":{"x":69,"y":143,"width":799,"height":11}},{"id":"4398d7ad-a641-4661-8a4a-2433c9c4d092","block_type":"box","text":"($360,000 for 2026). The RSP offers a range of investment options, including registered investment companies and","page_number":31,"box":{"x":69,"y":157,"width":831,"height":12}},{"id":"c0957aa1-3fc6-4107-af05-d1582ec846fd","block_type":"box","text":"collective investment funds managed by the firm. BlackRock contributions follow the investment direction set by","page_number":31,"box":{"x":69,"y":173,"width":798,"height":11}},{"id":"a8af6fcf-0c27-44c7-a2b1-e3a6e0b5fbd5","block_type":"box","text":"participants for their own contributions or, absent participant investment direction, are invested into a target date","page_number":31,"box":{"x":70,"y":188,"width":809,"height":12}},{"id":"7f3dcadd-563f-45b6-bc5b-f0a98fec9244","block_type":"box","text":"fund that corresponds to, or is closest to, the year in which the participant attains age 65. The ESPP allows for","page_number":31,"box":{"x":68,"y":203,"width":793,"height":12}},{"id":"0efd2009-be67-4159-a9d8-2a3a01ec1537","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":31,"box":{"x":70,"y":218,"width":832,"height":11}},{"id":"46ffadf3-33aa-4d13-8c70-94c80a93c573","block_type":"box","text":"Annual participation in the ESPP is limited to the purchase of 1,000 shares of common stock or a dollar value of","page_number":31,"box":{"x":68,"y":234,"width":805,"height":11}},{"id":"f962206f-756f-4ad3-8450-d3463ca38250","block_type":"box","text":"$25,000 based on its fair market value on the purchase date. All of the eligible portfolio managers are eligible to","page_number":31,"box":{"x":69,"y":248,"width":808,"height":12}},{"id":"b56fe9b6-3023-42cb-841f-18e0a358cc59","block_type":"box","text":"participate in these plans.","page_number":31,"box":{"x":70,"y":264,"width":185,"height":11}},{"id":"e6eb354e-7550-4121-b40c-58ecfc58a789","block_type":"box","text":"Por tfolio Manager Beneficial Holdings","page_number":31,"box":{"x":69,"y":294,"width":268,"height":11}},{"id":"f1045156-7248-43c8-8558-ee24ebc49fe2","block_type":"box","text":"As of May 31, 2026, the Portfolio’s most recently completed fiscal year end, the dollar range of securities","page_number":31,"box":{"x":101,"y":317,"width":757,"height":11}},{"id":"37253dbc-cc7a-4e6c-a808-febaadf4a3a6","block_type":"box","text":"beneficially owned by the portfolio managers in the Portfolio is shown below:","page_number":31,"box":{"x":69,"y":332,"width":545,"height":11}},{"id":"cc83f3e8-1a16-4cb9-ac1c-97dad057a72f","block_type":"box","text":"Portfolio Manager","page_number":31,"box":{"x":69,"y":370,"width":105,"height":9}},{"id":"b22348b1-58aa-470e-a694-90538f1a0150","block_type":"box","text":"Dollar Range of Equity","page_number":31,"box":{"x":757,"y":360,"width":129,"height":9}},{"id":"38b1478f-aff5-4581-9e18-c13f3450b7a8","block_type":"box","text":"Securities Beneficially Owned","page_number":31,"box":{"x":732,"y":370,"width":173,"height":9}},{"id":"69bd6434-bc35-4161-9c1b-cd9001b5bd7a","block_type":"box","text":"1","page_number":31,"box":{"x":906,"y":370,"width":4,"height":4}},{"id":"6d5f9d4c-81e2-4d81-950c-c05265c7be62","block_type":"box","text":"Zeshan Azam","page_number":31,"box":{"x":69,"y":388,"width":94,"height":9}},{"id":"9b822b4f-497a-4841-b8ed-8da9a1ba67a5","block_type":"box","text":"..................................................................","page_number":31,"box":{"x":170,"y":395,"width":531,"height":2}},{"id":"0946c7ec-05ec-4a25-8425-4ace59be1cc6","block_type":"box","text":"None","page_number":31,"box":{"x":804,"y":388,"width":35,"height":9}},{"id":"3ae01811-640c-4d3a-ac3e-687aa91fcdf3","block_type":"box","text":"Wendy Agnew, CFA","page_number":31,"box":{"x":68,"y":403,"width":133,"height":11}},{"id":"c30801bd-9ffb-420f-a643-f67568adf78a","block_type":"box","text":"..............................................................","page_number":31,"box":{"x":202,"y":411,"width":499,"height":1}},{"id":"41176a12-7da3-48ef-86ff-ab796e3e4934","block_type":"box","text":"None","page_number":31,"box":{"x":804,"y":403,"width":35,"height":9}},{"id":"5d018481-dd57-45da-b22b-7e6c0c63dc08","block_type":"box","text":"1","page_number":31,"box":{"x":69,"y":428,"width":3,"height":3}},{"id":"0f9de4c0-ead5-431b-9d29-b6ced2774644","block_type":"box","text":"Includes securities attributable to the portfolio manager’s participation in certain deferred compensation and retirement programs.","page_number":31,"box":{"x":94,"y":427,"width":746,"height":10}},{"id":"d0bf292e-9196-42f7-8f98-c205212ea140","block_type":"box","text":"Por tfolio Manager Potential Material Conflicts of Interest","page_number":31,"box":{"x":69,"y":456,"width":403,"height":11}},{"id":"f0c958b2-b6e0-4b19-84c9-e4e74d1c072b","block_type":"box","text":"BlackRock has built a professional working environment, firm-wide compliance culture and compliance","page_number":31,"box":{"x":102,"y":479,"width":727,"height":11}},{"id":"2e3778fa-34e0-4663-89e3-e2119d84fb9d","block_type":"box","text":"procedures and systems designed to protect against potential incentives that may favor one account over another.","page_number":31,"box":{"x":70,"y":494,"width":814,"height":11}},{"id":"1ecf4c5a-1c5e-47e9-bab6-7dc606d64132","block_type":"box","text":"BlackRock has adopted policies and procedures that address the allocation of investment opportunities, execution of","page_number":31,"box":{"x":70,"y":509,"width":837,"height":11}},{"id":"04506429-aaf8-4a58-923a-d371cdd3be2e","block_type":"box","text":"portfolio transactions, personal trading by employees and other potential conflicts of interest that are designed to","page_number":31,"box":{"x":70,"y":524,"width":810,"height":11}},{"id":"ad92c2c7-4d16-4c42-a919-e3d59aa398d3","block_type":"box","text":"ensure that all client accounts are treated equitably over time. Nevertheless, BlackRock furnishes investment","page_number":31,"box":{"x":69,"y":539,"width":782,"height":11}},{"id":"9e6bee0d-e2e0-4a62-a1e8-bd47a90acd46","block_type":"box","text":"management and advisory services to numerous clients in addition to the Portfolio, and BlackRock may, consistent","page_number":31,"box":{"x":69,"y":554,"width":823,"height":12}},{"id":"4eb290d9-6a47-4558-9693-80058e527e84","block_type":"box","text":"with applicable law, make investment recommendations to other clients or accounts (including accounts which are","page_number":31,"box":{"x":68,"y":570,"width":814,"height":11}},{"id":"7d3130b8-1567-4515-8023-2b913d1ea63d","block_type":"box","text":"hedge funds or have performance or higher fees paid to BlackRock, or in which portfolio managers have a personal","page_number":31,"box":{"x":69,"y":584,"width":821,"height":12}},{"id":"c6afb8a9-9141-4dfa-ac36-64fbac026337","block_type":"box","text":"interest in the receipt of such fees), which may be the same as or different from those made to the Portfolio. In","page_number":31,"box":{"x":70,"y":600,"width":796,"height":11}},{"id":"743b29c2-fa35-46a8-a5e6-cf062d216549","block_type":"box","text":"addition, BlackRock, its affiliates and significant shareholders and any officer, director, shareholder or employee may","page_number":31,"box":{"x":69,"y":615,"width":836,"height":11}},{"id":"b6059396-31c0-4721-8e9b-0d1e8866cf50","block_type":"box","text":"or may not have an interest in the securities whose purchase and sale BlackRock recommends to the Portfolio.","page_number":31,"box":{"x":69,"y":630,"width":794,"height":11}},{"id":"fe62f885-2bbf-4fee-b718-1cad234c2d03","block_type":"box","text":"BlackRock, or any of its affiliates or significant shareholders, or any officer, director, shareholder, employee or any","page_number":31,"box":{"x":70,"y":645,"width":814,"height":11}},{"id":"f59319b1-ecc7-41e4-9746-889b9fee0022","block_type":"box","text":"member of their families may take different actions than those recommended to the Portfolio by BlackRock with","page_number":31,"box":{"x":69,"y":660,"width":798,"height":11}},{"id":"b359b958-fdf6-4762-bf95-920ae19042b6","block_type":"box","text":"respect to the same securities. Moreover, BlackRock may refrain from rendering any advice or services concerning","page_number":31,"box":{"x":69,"y":675,"width":816,"height":11}},{"id":"6757949f-ac61-4785-8a06-7e708ace4c24","block_type":"box","text":"securities of companies of which any of BlackRock’s (or its affiliates’ or significant shareholders’) officers, directors","page_number":31,"box":{"x":69,"y":690,"width":827,"height":12}},{"id":"6568a043-d62f-40b7-8d83-4bc49fefaec3","block_type":"box","text":"or employees are directors or officers, or companies as to which BlackRock or any of its affiliates or significant","page_number":31,"box":{"x":69,"y":705,"width":792,"height":12}},{"id":"97218278-1c79-4c58-901f-d2cee491155b","block_type":"box","text":"shareholders or the officers, directors and employees of any of them has any substantial economic interest or","page_number":31,"box":{"x":69,"y":721,"width":787,"height":11}},{"id":"2f39befd-6220-43d9-b9a4-21f9147a4400","block_type":"box","text":"possesses material non-public information. Certain portfolio managers also may manage accounts whose investment","page_number":31,"box":{"x":70,"y":736,"width":838,"height":11}},{"id":"e91df729-b641-4840-9a9c-e9dac15914ca","block_type":"box","text":"strategies may at times be opposed to the strategy utilized for the Portfolio. It should also be noted that Mr. Azam","page_number":31,"box":{"x":69,"y":751,"width":813,"height":11}},{"id":"73728bab-d4eb-4287-b497-909c07f08511","block_type":"box","text":"and Ms. Agnew may be managing hedge fund and/or long only accounts, or may be part of a team managing hedge","page_number":31,"box":{"x":69,"y":766,"width":823,"height":11}},{"id":"f1351d69-c253-4df7-9fbd-a42b5d85f601","block_type":"box","text":"fund and/or long only accounts, subject to incentive fees. Mr. Azam and Ms. Agnew may therefore be entitled to","page_number":31,"box":{"x":68,"y":781,"width":799,"height":11}},{"id":"cd1406a8-30f0-4025-baa2-54fdc9203235","block_type":"box","text":"receive a portion of any incentive fees earned on such accounts.","page_number":31,"box":{"x":69,"y":796,"width":460,"height":11}},{"id":"ac6d3cad-5a23-4e20-b4fa-41e300e4fc36","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":31,"box":{"x":101,"y":819,"width":788,"height":11}},{"id":"0f9c2a4e-c77e-40b1-8f66-a1a254aeda63","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":31,"box":{"x":70,"y":834,"width":839,"height":11}},{"id":"73cfd2f1-d0fd-48ed-8515-599fd99ebdd8","block_type":"box","text":"fiduciary duties. BlackRock attempts to allocate investments in a fair and equitable manner among client accounts,","page_number":31,"box":{"x":68,"y":849,"width":823,"height":11}},{"id":"4822821a-e276-491b-87ee-08b6987a0258","block_type":"box","text":"with no account receiving preferential treatment. To this end, BlackRock has adopted policies that are intended to","page_number":31,"box":{"x":68,"y":864,"width":812,"height":11}},{"id":"eb4783ca-d780-410d-bc92-dcf7f866d405","block_type":"box","text":"ensure reasonable efficiency in client transactions and provide BlackRock with sufficient flexibility to allocate","page_number":31,"box":{"x":69,"y":879,"width":777,"height":11}},{"id":"28f57148-1e73-478e-acd6-2f7e24a7590c","block_type":"box","text":"investments in a manner that is consistent with the particular investment discipline and client base, as appropriate.","page_number":31,"box":{"x":70,"y":895,"width":826,"height":10}},{"id":"de489215-fb44-4cc9-aea9-228f2ece292b","block_type":"box","text":"I-22","page_number":31,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"a22c43de-dbdc-4bed-a4cc-2d7867555502","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":31,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3bb26daa-d2ac-499b-9cb4-6a487db4d120","block_type":"box","text":"Accounting Services","page_number":32,"box":{"x":68,"y":45,"width":150,"height":11}},{"id":"1f350270-6ec9-4d7f-8915-99d8abfbb57b","block_type":"box","text":"The Bank of New York Mellon (“BNY”), which has its principal place of business at 240 Greenwich Street New","page_number":32,"box":{"x":101,"y":67,"width":782,"height":11}},{"id":"c7904946-c7e2-4ff7-adae-7c3d70143265","block_type":"box","text":"York, New York 10286, serves as the accounting services provider for the Portfolio. BNY records investment, capital","page_number":32,"box":{"x":68,"y":82,"width":829,"height":12}},{"id":"f6445d12-cbee-4022-8758-fbdf4ee45378","block_type":"box","text":"share and income and expense activities; verifies and transmits trade tickets; maintains accounting ledgers for","page_number":32,"box":{"x":69,"y":98,"width":793,"height":11}},{"id":"70bd0b08-6e16-465b-8e33-e3236c5a266b","block_type":"box","text":"investment securities; maintains tax lots; reconciles cash with the Portfolio’s custodian; reports cash balances to","page_number":32,"box":{"x":70,"y":113,"width":812,"height":11}},{"id":"add63112-89c0-4027-a9d9-dc2736125bba","block_type":"box","text":"BlackRock; prepares certain financial statements; calculates expenses, gains, losses and income; controls","page_number":32,"box":{"x":70,"y":128,"width":765,"height":11}},{"id":"2da13698-fbab-452d-9596-25f53b34c92e","block_type":"box","text":"disbursements; works with independent pricing sources; and computes and reports net asset value. In connection","page_number":32,"box":{"x":69,"y":143,"width":815,"height":11}},{"id":"b8abb46b-96f4-450b-b545-0cdd7f5b8f0a","block_type":"box","text":"with its accounting services, BNY also provides certain administration services.","page_number":32,"box":{"x":68,"y":158,"width":569,"height":11}},{"id":"62eddff2-f675-4c34-94e1-d3c59632ab9c","block_type":"box","text":"The table below shows the amounts paid by the Portfolio to BNY for accounting services for the periods shown:","page_number":32,"box":{"x":101,"y":181,"width":793,"height":11}},{"id":"5d4180bc-e59e-4d25-a353-3a13170c545f","block_type":"box","text":"Fees Paid to","page_number":32,"box":{"x":837,"y":209,"width":72,"height":7}},{"id":"cf662a34-1a85-4989-8651-68abb0f39398","block_type":"box","text":"BNY","page_number":32,"box":{"x":861,"y":219,"width":24,"height":7}},{"id":"8d6a7a65-15e2-4d3e-8406-a6305befccf1","block_type":"box","text":"Fiscal Year Ended May 31, 2026 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":32,"box":{"x":70,"y":237,"width":483,"height":11}},{"id":"b573e136-a579-4eb7-9e29-e0629e126d07","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 87,239","page_number":32,"box":{"x":559,"y":236,"width":350,"height":11}},{"id":"b081ebb3-e39e-4a02-955a-fea9cc7cae21","block_type":"box","text":"Fiscal Year Ended May 31, 2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":32,"box":{"x":70,"y":252,"width":483,"height":11}},{"id":"62e2b1bb-994b-485d-a455-b0c00caab1ba","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 97,515","page_number":32,"box":{"x":559,"y":251,"width":350,"height":11}},{"id":"352ea024-0eff-49fb-a0db-c4273492c209","block_type":"box","text":"Fiscal Year Ended May 31, 2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":32,"box":{"x":70,"y":267,"width":483,"height":11}},{"id":"d1d8fa4d-6ae5-4846-bb15-049dbb201d36","block_type":"box","text":"...............................","page_number":32,"box":{"x":559,"y":274,"width":246,"height":2}},{"id":"bb71fdc0-8b77-4fa8-a28f-a5ab19353b00","block_type":"box","text":"$105,546","page_number":32,"box":{"x":837,"y":266,"width":72,"height":11}},{"id":"0164d05a-2ad1-4f7f-be93-9a0271e71064","block_type":"box","text":"Custodian","page_number":32,"box":{"x":69,"y":299,"width":72,"height":8}},{"id":"7f554ca7-036a-486f-9b81-deab7f2810d5","block_type":"box","text":"Pursuant to the terms of a custodian agreement (the “Custodian Agreement”) between the Trust and The Bank","page_number":32,"box":{"x":102,"y":321,"width":789,"height":11}},{"id":"e41440fa-fcfd-4d5c-b583-139cf29e82a6","block_type":"box","text":"of New York Mellon (the “Custodian”), the Custodian or a sub-custodian (i) maintains a separate account or accounts","page_number":32,"box":{"x":69,"y":336,"width":834,"height":11}},{"id":"3970145c-6c75-4702-8231-d75011359def","block_type":"box","text":"in the name of the Portfolio, (ii) holds and transfers portfolio securities on account of the Portfolio, (iii) accepts","page_number":32,"box":{"x":70,"y":351,"width":791,"height":11}},{"id":"fa9adaf3-7d9e-448c-86e9-9ceb8d1c31e3","block_type":"box","text":"receipts and makes disbursements of money on behalf of the Portfolio, (iv) collects and receives all income and other","page_number":32,"box":{"x":69,"y":366,"width":841,"height":12}},{"id":"e10b755c-b2af-43f9-9eae-f6383c6b7532","block_type":"box","text":"payments and distributions on account of the Portfolio’s securities and (v) makes periodic reports to the Board of","page_number":32,"box":{"x":70,"y":382,"width":811,"height":11}},{"id":"0a82d70c-5602-4542-bd5e-10f527f910ea","block_type":"box","text":"Trustees concerning the Portfolio’s operations. The Custodian is authorized to select one or more banks or trust","page_number":32,"box":{"x":68,"y":397,"width":803,"height":11}},{"id":"c2249de3-0b19-45b8-829e-7dbfe2802a57","block_type":"box","text":"companies to serve as sub-custodian on behalf of the Portfolio, provided that, with respect to sub-custodians other","page_number":32,"box":{"x":69,"y":412,"width":823,"height":11}},{"id":"42df306b-98d6-4e3e-8bf1-82857252f1a2","block_type":"box","text":"than sub-custodians for non-U.S. securities, the Custodian remains responsible for the performance of all its duties","page_number":32,"box":{"x":68,"y":427,"width":826,"height":11}},{"id":"3b0952d1-48f3-48be-9be5-f372f99f048a","block_type":"box","text":"under the Custodian Agreement and holds the Trust harmless from the acts and omissions of any sub-custodian.","page_number":32,"box":{"x":69,"y":442,"width":805,"height":11}},{"id":"44892603-613e-4cd1-b15b-0e350bde3c7f","block_type":"box","text":"Transfer Agent","page_number":32,"box":{"x":68,"y":472,"width":107,"height":11}},{"id":"55c307b8-e1df-4d6e-a6fb-b8101e8fa1e1","block_type":"box","text":"BNY serves as the transfer and dividend disbursing agent for the Portfolio.","page_number":32,"box":{"x":102,"y":495,"width":531,"height":11}},{"id":"841e2ccf-f646-4a58-845e-10c0a4458dba","block_type":"box","text":"Credit Agreement","page_number":32,"box":{"x":69,"y":525,"width":129,"height":11}},{"id":"831c5463-ad0d-432d-9210-239697f1a6dc","block_type":"box","text":"The Trust, on behalf of the Portfolio, along with certain other funds managed by the Manager and its affiliates","page_number":32,"box":{"x":101,"y":548,"width":783,"height":11}},{"id":"dacc399a-1ad5-4d58-aeba-b9a34b57aa41","block_type":"box","text":"(“Participating Funds”), is a party to a 364-day, $2.4 billion credit agreement with a group of lenders, which facility","page_number":32,"box":{"x":69,"y":562,"width":817,"height":12}},{"id":"25f2fff0-bcdd-46de-82c2-9391cb262e04","block_type":"box","text":"terminates on April 8, 2027 unless otherwise extended or renewed (the “Credit Agreement”). Excluding commitments","page_number":32,"box":{"x":68,"y":578,"width":840,"height":11}},{"id":"21ee7cec-9f5c-4357-81f9-8f1a5e9a5d86","block_type":"box","text":"designated for certain Participating Funds, the Participating Funds, including the Portfolio, can borrow up to an","page_number":32,"box":{"x":69,"y":593,"width":789,"height":12}},{"id":"0f05b92a-b230-4f51-8f51-7ed1590ccd04","block_type":"box","text":"aggregate commitment amount of $1.75 billion at any time outstanding, subject to asset coverage and other","page_number":32,"box":{"x":69,"y":608,"width":776,"height":12}},{"id":"19a44e25-12ee-49be-84bf-8724524c65ee","block_type":"box","text":"limitations as specified in the Credit Agreement. The Portfolio may borrow under the Credit Agreement to meet","page_number":32,"box":{"x":70,"y":623,"width":787,"height":12}},{"id":"49fd47ec-16e5-4bfa-a372-1a5b79326fc4","block_type":"box","text":"shareholder redemptions and for other lawful purposes. However, the Portfolio may not borrow under the Credit","page_number":32,"box":{"x":69,"y":639,"width":794,"height":11}},{"id":"1efe6030-1ff7-4ac5-bf9a-734bbda8b1c0","block_type":"box","text":"Agreement for leverage. The Portfolio may borrow up to the maximum amount allowable under its current","page_number":32,"box":{"x":68,"y":654,"width":749,"height":11}},{"id":"e798369d-e084-4167-9bb0-43a7cfdb4d7e","block_type":"box","text":"Prospectuses and SAI, subject to various other legal, regulatory or contractual limits. Borrowing results in interest","page_number":32,"box":{"x":69,"y":669,"width":812,"height":11}},{"id":"738dfb76-1c12-4bd1-9e36-0ffba311923c","block_type":"box","text":"expense and other fees and expenses for the Portfolio which may impact the Portfolio’s net expenses. The costs of","page_number":32,"box":{"x":69,"y":684,"width":826,"height":11}},{"id":"a5ea8061-d668-4057-9bbf-be5c7bf99fe1","block_type":"box","text":"borrowing may reduce the Portfolio’s return. The Portfolio is charged its pro rata share of upfront fees and","page_number":32,"box":{"x":69,"y":699,"width":758,"height":11}},{"id":"3e488fd2-e6fa-461d-90d4-4d2f8d1ca359","block_type":"box","text":"commitment fees on the aggregate commitment amount based on its net assets. If the Portfolio borrows pursuant to","page_number":32,"box":{"x":69,"y":714,"width":835,"height":12}},{"id":"ba743482-ec0f-4e0b-9311-9a00efcf9cdd","block_type":"box","text":"the Credit Agreement, the Portfolio will be charged interest at a variable rate.","page_number":32,"box":{"x":68,"y":729,"width":550,"height":12}},{"id":"000dff5b-325c-47ee-9159-62187b67f54a","block_type":"box","text":"V. Information on Sales Charges and Distribution Related Expenses","page_number":32,"box":{"x":68,"y":760,"width":491,"height":11}},{"id":"591e7d56-8876-4d7b-ba9a-82da4aecf647","block_type":"box","text":"Distribution Agreement and Distribution and Service Plan","page_number":32,"box":{"x":102,"y":782,"width":416,"height":11}},{"id":"6f025b84-505c-4fd5-9424-5fa4b727269a","block_type":"box","text":". The Trust has entered into a distribution agreement","page_number":32,"box":{"x":521,"y":783,"width":376,"height":11}},{"id":"701fcbbd-2892-4b1b-929a-569a2b3e10e6","block_type":"box","text":"with BlackRock Investments, LLC (“BRIL” or the “Distributor”) under which BRIL, as agent, offers shares of the","page_number":32,"box":{"x":68,"y":797,"width":790,"height":12}},{"id":"b2f298a3-42c5-42bd-81e2-3e11411c8d77","block_type":"box","text":"Portfolio on a continuous basis. BRIL has agreed to use appropriate efforts to effect sales of the shares, but it is not","page_number":32,"box":{"x":69,"y":812,"width":839,"height":12}},{"id":"8bddfbbb-61dc-441b-98aa-b1054caa67e0","block_type":"box","text":"obligated to sell any particular amount of shares. BRIL’s principal business address is 50 Hudson Yards, New York,","page_number":32,"box":{"x":69,"y":828,"width":822,"height":11}},{"id":"fbb8409e-f421-4a9b-932b-95c19561790e","block_type":"box","text":"NY 10001. BRIL is an affiliate of BlackRock.","page_number":32,"box":{"x":70,"y":843,"width":314,"height":9}},{"id":"af747a5b-72e9-490e-bbf7-49699526e821","block_type":"box","text":"The Trust may also pay shareholder servicing fees (also referred to as general shareholder liaison services fees)","page_number":32,"box":{"x":101,"y":865,"width":805,"height":12}},{"id":"076027ec-3b0b-4c64-a62b-743b839b594d","block_type":"box","text":"to affiliated and unaffiliated brokers, dealers, financial institutions, insurance companies, retirement plan record","page_number":32,"box":{"x":68,"y":881,"width":808,"height":11}},{"id":"82f59bc2-1939-470e-9790-2cd111f458bc","block_type":"box","text":"keepers and other financial intermediaries (including BlackRock, BRIL and their affiliates) (collectively, “Service","page_number":32,"box":{"x":69,"y":896,"width":791,"height":11}},{"id":"f54f23f2-9b9b-41f3-b197-b2467d8dfb62","block_type":"box","text":"I-23","page_number":32,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"8ff08c91-d0c0-4272-b780-eb40b4d6617f","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":32,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1d07f731-3360-4925-a0fc-007ad3d6ead8","block_type":"box","text":"Organizations”) for certain support services rendered by Service Organizations to their customers who are the","page_number":33,"box":{"x":69,"y":45,"width":786,"height":11}},{"id":"0aaa7d6f-fb72-4fce-8c74-2797aa733319","block_type":"box","text":"beneficial owners of Investor A and Investor C Shares of the Portfolio.","page_number":33,"box":{"x":69,"y":60,"width":496,"height":9}},{"id":"fafa7aa5-14b8-41a9-8bed-9fe049db9a94","block_type":"box","text":"Set forth below is information on sales charges (including any contingent deferred sales charges (“CDSCs”))","page_number":33,"box":{"x":102,"y":82,"width":773,"height":12}},{"id":"5ec75ef2-ad33-4aa7-a78a-33526cb08764","block_type":"box","text":"received by the Portfolio, including the amounts paid to affiliates of BlackRock, for the periods shown. BRIL, an","page_number":33,"box":{"x":69,"y":98,"width":792,"height":11}},{"id":"5bab023e-3a8a-4f78-bc3c-ccd430f1f2cb","block_type":"box","text":"affiliate of BlackRock, acts as the Portfolio’s sole distributor.","page_number":33,"box":{"x":69,"y":113,"width":434,"height":10}},{"id":"10635b14-e05f-45fb-b114-c41d996ed620","block_type":"box","text":"Investor A Shares","page_number":33,"box":{"x":647,"y":141,"width":103,"height":7}},{"id":"c66f81aa-8201-4940-8b5e-17a2a62e2723","block_type":"box","text":"Gross Sales","page_number":33,"box":{"x":487,"y":167,"width":69,"height":7}},{"id":"f3bd9b20-4c22-450f-98fb-8fe921372d12","block_type":"box","text":"Charges","page_number":33,"box":{"x":498,"y":177,"width":47,"height":9}},{"id":"ca5f6be6-e0c7-40a8-9f90-a515c8302e7b","block_type":"box","text":"Collected","page_number":33,"box":{"x":494,"y":187,"width":55,"height":7}},{"id":"547c4639-655f-45f2-b12d-fa6704294c83","block_type":"box","text":"Sales Charges","page_number":33,"box":{"x":585,"y":167,"width":84,"height":9}},{"id":"23a17c8a-f019-4077-935f-820790f32e45","block_type":"box","text":"Retained","page_number":33,"box":{"x":602,"y":177,"width":51,"height":7}},{"id":"a45cb185-5a3e-4d42-9fad-fae834514f06","block_type":"box","text":"by BRIL","page_number":33,"box":{"x":606,"y":187,"width":44,"height":9}},{"id":"8ca85723-ea3c-49ca-9a66-f073cd21bb49","block_type":"box","text":"Sales Charges","page_number":33,"box":{"x":699,"y":167,"width":83,"height":9}},{"id":"b265fb92-4c4c-45bd-8b6e-917faad8bbcf","block_type":"box","text":"Paid to","page_number":33,"box":{"x":721,"y":177,"width":40,"height":7}},{"id":"04ea22b6-d259-473d-9153-6c606a8dccf4","block_type":"box","text":"Affiliates","page_number":33,"box":{"x":715,"y":187,"width":51,"height":7}},{"id":"cbabdf6e-6395-4a58-a086-ba5ed298c021","block_type":"box","text":"CDSCs Received","page_number":33,"box":{"x":812,"y":157,"width":97,"height":7}},{"id":"24155c8f-e971-4962-b0a9-886459fae096","block_type":"box","text":"on Redemption","page_number":33,"box":{"x":817,"y":167,"width":87,"height":9}},{"id":"df93efff-986f-45bf-81bf-6f64ce72caba","block_type":"box","text":"of Load-Waived","page_number":33,"box":{"x":817,"y":177,"width":87,"height":7}},{"id":"351057b4-caf3-4bdb-bd73-b2a47a6372fe","block_type":"box","text":"Shares","page_number":33,"box":{"x":841,"y":187,"width":39,"height":7}},{"id":"c0fe6b08-4570-4b4d-be7e-e3af0ad0449f","block_type":"box","text":"Fiscal Year Ended May 31, 2026 . . . . . . .","page_number":33,"box":{"x":70,"y":205,"width":288,"height":11}},{"id":"8a7adc6d-a6d2-457f-94e3-de777db8d28e","block_type":"box","text":"............","page_number":33,"box":{"x":365,"y":212,"width":91,"height":2}},{"id":"9e812c04-1f86-4a6e-ad0d-300ced8eae10","block_type":"box","text":"$84,279 $7,212 $7,212 $ 345","page_number":33,"box":{"x":491,"y":204,"width":396,"height":11}},{"id":"e3841768-7da4-4fb2-bc61-4376ea0390d0","block_type":"box","text":"Fiscal Year Ended May 31, 2025 . . . . . . .","page_number":33,"box":{"x":70,"y":220,"width":288,"height":11}},{"id":"39e5d3d6-6f52-4789-811f-a79090103320","block_type":"box","text":"............","page_number":33,"box":{"x":365,"y":227,"width":91,"height":2}},{"id":"684a6d7b-98e6-42a2-a3c4-6c6d990c9f70","block_type":"box","text":"$57,707 $4,613 $4,613 $ 370","page_number":33,"box":{"x":491,"y":219,"width":396,"height":11}},{"id":"529d60ec-5143-48cd-8007-093ac5c2c842","block_type":"box","text":"Fiscal Year Ended May 31, 2024 . . . . . . .","page_number":33,"box":{"x":70,"y":235,"width":288,"height":11}},{"id":"cbb334d0-48b2-4064-847e-4cd51d0ba8ed","block_type":"box","text":"............","page_number":33,"box":{"x":365,"y":242,"width":91,"height":2}},{"id":"da46276a-de39-4ba0-bdd1-55c5823e97b4","block_type":"box","text":"$56,747 $3,926 $3,926 $2,103","page_number":33,"box":{"x":491,"y":234,"width":396,"height":11}},{"id":"9225ac24-6b68-4ee2-9c45-de85b9cac764","block_type":"box","text":"Investor C Shares","page_number":33,"box":{"x":790,"y":264,"width":103,"height":8}},{"id":"2274a3ba-8bbb-4ea1-8344-4c4199808023","block_type":"box","text":"CDSCs","page_number":33,"box":{"x":780,"y":280,"width":39,"height":7}},{"id":"c41c1c7b-bb5b-4667-87d7-2222edd30880","block_type":"box","text":"Received","page_number":33,"box":{"x":774,"y":290,"width":52,"height":7}},{"id":"4ab7b478-72ea-46d2-9291-6198c03f34b4","block_type":"box","text":"by BRIL","page_number":33,"box":{"x":778,"y":300,"width":44,"height":9}},{"id":"80e78377-bece-41c3-bb6c-87954d97af00","block_type":"box","text":"CDSCs","page_number":33,"box":{"x":863,"y":280,"width":39,"height":7}},{"id":"4721c115-8611-4749-a747-cfff9b1ca358","block_type":"box","text":"Paid to","page_number":33,"box":{"x":863,"y":290,"width":40,"height":7}},{"id":"63b6b30c-8c3d-4a9a-92d5-d394c18fda84","block_type":"box","text":"Affiliates","page_number":33,"box":{"x":856,"y":300,"width":52,"height":7}},{"id":"6809f0a4-1602-4925-b4d0-9e03e9d420f8","block_type":"box","text":"Fiscal Year Ended May 31, 2026 . . . .","page_number":33,"box":{"x":70,"y":318,"width":264,"height":11}},{"id":"f018cbbc-4357-46ed-8ddb-0bc5d586d644","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 506 $ 506","page_number":33,"box":{"x":341,"y":317,"width":568,"height":11}},{"id":"663d5089-eb50-431c-a840-baf76bf4c41c","block_type":"box","text":"Fiscal Year Ended May 31, 2025 . . . .","page_number":33,"box":{"x":70,"y":333,"width":264,"height":11}},{"id":"ea1293cc-7d89-41bb-89fe-72966d6d1843","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 433 $ 433","page_number":33,"box":{"x":341,"y":332,"width":568,"height":11}},{"id":"94322ce6-94e9-4a2d-be40-e8e8e3c1cbd8","block_type":"box","text":"Fiscal Year Ended May 31, 2024 . . . .","page_number":33,"box":{"x":70,"y":348,"width":264,"height":11}},{"id":"124ffadd-33f7-493a-a05d-7a0d767a34e5","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,182 $1,182","page_number":33,"box":{"x":341,"y":348,"width":568,"height":11}},{"id":"cd7b7006-d156-4e10-ac42-ca5220d7310f","block_type":"box","text":"The table below provides information for the fiscal year ended May 31, 2026 about the 12b-1 fees the Portfolio","page_number":33,"box":{"x":101,"y":372,"width":796,"height":11}},{"id":"03c2d478-2a71-43ae-94ef-0d52463ae8b0","block_type":"box","text":"paid to BRIL under the Portfolio’s 12b-1 plans. A portion of the fees collected by BRIL were paid to affiliates for","page_number":33,"box":{"x":70,"y":387,"width":795,"height":11}},{"id":"ca96d388-706d-46a9-bd1f-987fbbeee693","block_type":"box","text":"providing shareholder servicing activities for Investor A Shares and for providing shareholder servicing and","page_number":33,"box":{"x":70,"y":402,"width":756,"height":12}},{"id":"c3cbc766-b58a-408a-bdc0-b1a08e93e44d","block_type":"box","text":"distribution-related activities and services for Investor C Shares.","page_number":33,"box":{"x":69,"y":418,"width":456,"height":9}},{"id":"5e6138b3-ff0c-4fa4-abbe-191051e2a7e9","block_type":"box","text":"Class Name","page_number":33,"box":{"x":69,"y":446,"width":68,"height":7}},{"id":"d39b2e13-ff44-403e-b283-fcdb7825a8db","block_type":"box","text":"Fees Paid to BRIL","page_number":33,"box":{"x":806,"y":446,"width":103,"height":7}},{"id":"ed315d61-711c-43d9-8dc1-552d35e6b41f","block_type":"box","text":"Investor A Shares .","page_number":33,"box":{"x":70,"y":464,"width":134,"height":9}},{"id":"3853d8a6-eb74-4f74-becb-194a556ddf7c","block_type":"box","text":"......................................................................","page_number":33,"box":{"x":210,"y":471,"width":564,"height":1}},{"id":"024422b1-06df-4be0-9100-ada8d104dee6","block_type":"box","text":"$928,466","page_number":33,"box":{"x":822,"y":463,"width":71,"height":11}},{"id":"5939c6ee-f178-4c36-9066-475457dfabc3","block_type":"box","text":"Investor C Shares . . .","page_number":33,"box":{"x":70,"y":479,"width":150,"height":9}},{"id":"4fa90dfb-0f78-42ac-829f-1f1d022d5e4c","block_type":"box","text":"....................................................................","page_number":33,"box":{"x":226,"y":486,"width":548,"height":2}},{"id":"5d510e8c-c17a-4b1e-a518-088b7909ce21","block_type":"box","text":"$126,286","page_number":33,"box":{"x":822,"y":478,"width":71,"height":11}},{"id":"0546e0dc-d2cb-45e0-ad80-ae568b1395e8","block_type":"box","text":"VI. Computation of Offering Price Per Share","page_number":33,"box":{"x":68,"y":510,"width":318,"height":11}},{"id":"878440e3-7875-43a5-b061-545cb4d8a2e9","block_type":"box","text":"An illustration of the computation of the public offering price of the Investor A Shares of the Portfolio, based on","page_number":33,"box":{"x":101,"y":533,"width":793,"height":11}},{"id":"4170f150-a836-43f4-b7ea-5228ed9a1463","block_type":"box","text":"the value of the Portfolio’s Investor A Shares’ net assets and number of Investor A Shares outstanding as of","page_number":33,"box":{"x":68,"y":548,"width":776,"height":11}},{"id":"c3f1385a-5a8b-40a6-a909-6fec98064019","block_type":"box","text":"May 31, 2026 follows:","page_number":33,"box":{"x":70,"y":563,"width":159,"height":11}},{"id":"d1c2219b-828b-4174-8079-a54930c7ddd5","block_type":"box","text":"Investor A Shares","page_number":33,"box":{"x":805,"y":591,"width":102,"height":7}},{"id":"4b9aac2d-cac9-407a-bd4a-a2cd57401c94","block_type":"box","text":"Net Assets","page_number":33,"box":{"x":70,"y":609,"width":76,"height":9}},{"id":"5151de64-e7c2-4a8f-b374-776c2bac8f38","block_type":"box","text":".............................................................................","page_number":33,"box":{"x":150,"y":617,"width":621,"height":1}},{"id":"caca8983-f4fd-49d2-a25f-4c77c0fc0155","block_type":"box","text":"$378,811,140","page_number":33,"box":{"x":803,"y":608,"width":106,"height":12}},{"id":"4aa9fc1c-f1b3-462a-88a0-f9d9e846009c","block_type":"box","text":"Number of Shares Outstanding . . .","page_number":33,"box":{"x":70,"y":624,"width":245,"height":11}},{"id":"f848af91-3f29-4db9-af30-f1587356cc4c","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29,","page_number":33,"box":{"x":321,"y":624,"width":524,"height":11}},{"id":"e73f9a39-ee0a-4714-8730-feb8da721b58","block_type":"box","text":"463,971","page_number":33,"box":{"x":847,"y":624,"width":62,"height":11}},{"id":"823af3d7-e786-447f-ae15-008c824bff06","block_type":"box","text":"Net Asset Value Per Share (net assets divided by","page_number":33,"box":{"x":70,"y":639,"width":347,"height":11}},{"id":"df38e899-d525-499a-bf35-9a8d8859f92c","block_type":"box","text":"number of shares outstanding) . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":33,"box":{"x":79,"y":654,"width":431,"height":11}},{"id":"e0471705-50ba-4985-80b9-d14aa312de25","block_type":"box","text":"................................","page_number":33,"box":{"x":517,"y":661,"width":254,"height":2}},{"id":"6b9017f7-e795-4acf-b70e-a8bdd9d9534a","block_type":"box","text":"$12.86","page_number":33,"box":{"x":857,"y":653,"width":52,"height":11}},{"id":"b60a6761-e84f-4369-b55e-8dde334aa2a1","block_type":"box","text":"Sales Charge (5.25% of offering price;","page_number":33,"box":{"x":69,"y":669,"width":271,"height":11}},{"id":"d7a6f68d-79fe-4430-b34f-80531b8a1b95","block_type":"box","text":"5.54% of net asset value per share)","page_number":33,"box":{"x":79,"y":683,"width":255,"height":11}},{"id":"4534242b-b99c-4c2e-9ba0-1a9741b527d5","block_type":"box","text":"1","page_number":33,"box":{"x":336,"y":684,"width":3,"height":4}},{"id":"bb0450f7-eb25-4f40-9f12-d8903020df33","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0.71","page_number":33,"box":{"x":345,"y":683,"width":564,"height":10}},{"id":"4d161979-b818-43c1-9a3c-121fa9e9eac6","block_type":"box","text":"Offering Price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":33,"box":{"x":69,"y":703,"width":702,"height":11}},{"id":"91ade3c2-afad-462e-b6e1-682c5fdbca84","block_type":"box","text":"$13.57","page_number":33,"box":{"x":857,"y":702,"width":51,"height":11}},{"id":"c0f37fee-3131-479a-a1db-9eb42d01fa1d","block_type":"box","text":"1","page_number":33,"box":{"x":69,"y":735,"width":3,"height":4}},{"id":"b8733b4d-0083-49b2-bd90-33c25e472fb0","block_type":"box","text":"Assumes maximum sales charge applicable.","page_number":33,"box":{"x":93,"y":735,"width":253,"height":9}},{"id":"d690d603-9736-450e-9920-adb35e9ea402","block_type":"box","text":"The offering price for the Portfolio’s other share classes is equal to the share class’s net asset value computed","page_number":33,"box":{"x":101,"y":756,"width":799,"height":11}},{"id":"16c3694d-c9a7-4c6f-978e-f79b87bab827","block_type":"box","text":"as set forth above for Investor A Shares. Though not subject to a sales charge, certain share classes may be subject","page_number":33,"box":{"x":69,"y":771,"width":837,"height":11}},{"id":"ce32663d-5dc8-4ba1-b32e-414ee913d357","block_type":"box","text":"to a CDSC on redemption. For more information on the purchasing and valuation of shares, please see “Purchase of","page_number":33,"box":{"x":68,"y":786,"width":833,"height":11}},{"id":"2ab9903b-ce4a-428d-8d72-f33a5ccba006","block_type":"box","text":"Shares” and “Pricing of Shares” in Part II of this SAI.","page_number":33,"box":{"x":69,"y":801,"width":377,"height":11}},{"id":"a2cbf8f9-047b-48ac-a20a-58ba88a5f4cc","block_type":"box","text":"VII. Portfolio Transactions and Brokerage","page_number":33,"box":{"x":68,"y":831,"width":302,"height":12}},{"id":"c26a3e1a-b836-4a5c-a4ba-32ab78e3e073","block_type":"box","text":"See “Portfolio Transactions and Brokerage” in Part II of this SAI for more information.","page_number":33,"box":{"x":102,"y":854,"width":609,"height":11}},{"id":"b3a10e4a-790f-4392-b7f2-1eb07109015d","block_type":"box","text":"I-24","page_number":33,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"7e891614-3cb0-4572-98db-600cf633320c","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":33,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1fb38b4c-09a0-4c16-a131-08e2140c94cf","block_type":"box","text":"Information about the brokerage commissions paid by the Portfolio, including commissions paid to affiliates, is","page_number":34,"box":{"x":102,"y":45,"width":792,"height":11}},{"id":"4ac0c5d1-9456-4ac5-bb47-9439028b4012","block_type":"box","text":"set forth in the following table:","page_number":34,"box":{"x":69,"y":60,"width":217,"height":11}},{"id":"61a8776c-71da-4f4d-a077-13880310f861","block_type":"box","text":"Aggregate Brokerage","page_number":34,"box":{"x":613,"y":88,"width":125,"height":9}},{"id":"dad51b0e-8ccb-408b-bd36-6d40dcabe647","block_type":"box","text":"Commissions Paid","page_number":34,"box":{"x":623,"y":98,"width":106,"height":7}},{"id":"2da17669-28eb-4ae0-a894-3025afee10b4","block_type":"box","text":"Brokerage Commissions","page_number":34,"box":{"x":769,"y":88,"width":140,"height":9}},{"id":"6847fdd6-7912-4bc0-88d3-e6bacff9d3d9","block_type":"box","text":"Paid to Affiliates","page_number":34,"box":{"x":791,"y":98,"width":96,"height":7}},{"id":"f37dad69-25d2-4f16-84c5-7fa841913d49","block_type":"box","text":"Fiscal Year Ended May 31, 2026. . . . . . . .","page_number":34,"box":{"x":70,"y":116,"width":292,"height":11}},{"id":"26a3539f-f45a-4ffe-85ef-6b1b8b52aa7a","block_type":"box","text":"...........................","page_number":34,"box":{"x":369,"y":123,"width":213,"height":2}},{"id":"18b00ab2-d343-4ff1-8bf8-e5bb132d4511","block_type":"box","text":"$340,212 $0","page_number":34,"box":{"x":640,"y":115,"width":208,"height":11}},{"id":"7324b97f-8622-445c-9a3f-472658ff0d7d","block_type":"box","text":"Fiscal Year Ended May 31, 2025. . . . . . . .","page_number":34,"box":{"x":70,"y":131,"width":292,"height":11}},{"id":"a50882c4-dbf4-4826-bcd5-d7d248653faa","block_type":"box","text":"...........................","page_number":34,"box":{"x":369,"y":138,"width":213,"height":2}},{"id":"141b6d05-c3e2-42d0-b6f1-21a30980f890","block_type":"box","text":"$215,102 $0","page_number":34,"box":{"x":640,"y":130,"width":208,"height":11}},{"id":"c6b64e2e-e2c7-40a4-9610-c83d1ac1f569","block_type":"box","text":"Fiscal Year Ended May 31, 2024. . . . . . . .","page_number":34,"box":{"x":70,"y":146,"width":292,"height":11}},{"id":"9faebf20-df74-43cb-aa69-9cb1e228a25b","block_type":"box","text":"...........................","page_number":34,"box":{"x":369,"y":154,"width":213,"height":1}},{"id":"d31bc07f-30a5-465d-9cae-de16fa862979","block_type":"box","text":"$260,176 $0","page_number":34,"box":{"x":640,"y":145,"width":208,"height":12}},{"id":"678f06b1-ffc1-4209-b155-f48dfe72a8fb","block_type":"box","text":"For the periods shown, the brokerage commissions paid to affiliates by the Portfolio represented 0% of the","page_number":34,"box":{"x":102,"y":170,"width":762,"height":11}},{"id":"a4c9ce21-12df-4b26-b9c0-17ca1604bfc7","block_type":"box","text":"aggregate brokerage commissions paid and involved 0% of the dollar amount of transactions involving payment of","page_number":34,"box":{"x":69,"y":185,"width":811,"height":11}},{"id":"f3f6c9ad-bd3f-4c94-b13b-011e5ab907aa","block_type":"box","text":"commissions during the periods shown.","page_number":34,"box":{"x":69,"y":200,"width":281,"height":12}},{"id":"64dc791a-7098-4ad6-9f67-cd64e1c8a497","block_type":"box","text":"The following table shows the dollar amount of brokerage commissions paid to brokers for providing Section","page_number":34,"box":{"x":101,"y":223,"width":770,"height":11}},{"id":"58b3ac83-aa67-4e23-907e-0a2bc0607755","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":34,"box":{"x":69,"y":238,"width":814,"height":11}},{"id":"f2f25831-7745-4c54-99a6-c683a9a3976a","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":34,"box":{"x":68,"y":253,"width":829,"height":11}},{"id":"3e57008d-4933-4bd6-9bdd-f170d8517c51","block_type":"box","text":"Section 28(e) research/brokerage services was not necessarily a factor in the placement of all brokerage business","page_number":34,"box":{"x":69,"y":268,"width":822,"height":12}},{"id":"9228209c-c58f-4ffd-bee1-a848af286688","block_type":"box","text":"with such brokers.","page_number":34,"box":{"x":68,"y":284,"width":130,"height":8}},{"id":"31422fec-e55d-40af-911d-d91e4e963efe","block_type":"box","text":"Amount of Commissions","page_number":34,"box":{"x":318,"y":312,"width":141,"height":7}},{"id":"7efcc44b-aa36-49c0-8d62-fe51aa34dfd1","block_type":"box","text":"Paid to Brokers for","page_number":34,"box":{"x":335,"y":322,"width":109,"height":7}},{"id":"f51f584f-580d-4597-9cb6-2b3222311fbe","block_type":"box","text":"Providing 28(e) Eligible Research Services","page_number":34,"box":{"x":265,"y":332,"width":248,"height":9}},{"id":"eb3370c6-56d7-4e27-85da-a6d4d8f0ace8","block_type":"box","text":"Amount of Brokerage","page_number":34,"box":{"x":588,"y":322,"width":124,"height":9}},{"id":"fc4c5c2f-cf53-40ad-b83e-4edabc2d6eec","block_type":"box","text":"Transactions Involved","page_number":34,"box":{"x":587,"y":332,"width":126,"height":7}},{"id":"300e2e1f-8976-479c-b16e-5520293649de","block_type":"box","text":"$0 $0","page_number":34,"box":{"x":380,"y":349,"width":280,"height":10}},{"id":"ca7f16d6-1f7f-4e7c-8be0-f2eddff42751","block_type":"box","text":"The Portfolio held no securities of its regular brokers or dealers (as defined in Rule 10b-1 under the Investment","page_number":34,"box":{"x":101,"y":373,"width":795,"height":12}},{"id":"39a22e4c-8ac1-4b29-ac02-67d1d68c1481","block_type":"box","text":"Company Act) or their parents as of May 31, 2026 whose shares were purchased during the fiscal year ended","page_number":34,"box":{"x":69,"y":389,"width":784,"height":11}},{"id":"ad978424-7dcb-4af4-9638-8f6023eb8ec5","block_type":"box","text":"May 31, 2026.","page_number":34,"box":{"x":70,"y":404,"width":104,"height":11}},{"id":"d22aa66e-4e14-4463-b5df-26aceb6ba632","block_type":"box","text":"Securities Lending","page_number":34,"box":{"x":68,"y":434,"width":135,"height":11}},{"id":"9aa8c31b-e8c7-43a5-b2a8-650c24ad20b4","block_type":"box","text":"To the extent that the Portfolio engages in securities lending, the Portfolio conducts its securities lending","page_number":34,"box":{"x":101,"y":457,"width":751,"height":11}},{"id":"fd65dbb6-1d77-4d0f-9cb7-0e83f883b2cb","block_type":"box","text":"pursuant to an exemptive order from the Commission permitting it to lend portfolio securities to borrowers affiliated","page_number":34,"box":{"x":70,"y":472,"width":825,"height":11}},{"id":"3be15ca0-f2c3-46c2-98a2-db2812efdae6","block_type":"box","text":"with the Portfolio and to retain an affiliate of the Portfolio as securities lending agent. To the extent that the Portfolio","page_number":34,"box":{"x":68,"y":487,"width":835,"height":11}},{"id":"41aea08c-7bcd-49db-acb5-70c8391461f8","block_type":"box","text":"engages in securities lending, BlackRock Investment Management, LLC (“BIM”) acts as securities lending agent for","page_number":34,"box":{"x":69,"y":502,"width":822,"height":11}},{"id":"38ce7143-92be-4a10-bc65-d74a6fb16c1e","block_type":"box","text":"the Portfolio, subject to the overall supervision of the Manager, pursuant to a written agreement (the “Securities","page_number":34,"box":{"x":68,"y":517,"width":802,"height":11}},{"id":"396e967d-2583-467d-996a-68656f0c5665","block_type":"box","text":"Lending Agency Agreement”). BIM administers the lending program in accordance with guidelines approved by the","page_number":34,"box":{"x":70,"y":532,"width":808,"height":11}},{"id":"d69213cb-ec04-4838-9a87-ff3ee1d8ac06","block_type":"box","text":"Board.","page_number":34,"box":{"x":70,"y":548,"width":44,"height":8}},{"id":"87a5e2a4-1856-473a-99e8-77aeae82955e","block_type":"box","text":"To the extent the Portfolio engages in securities lending, the Portfolio retains a portion of the securities lending","page_number":34,"box":{"x":101,"y":570,"width":796,"height":11}},{"id":"3378e3c4-5715-4278-a0bd-4f08d020db2d","block_type":"box","text":"income and remits the remaining portion to BIM as compensation for its services as securities lending agent.","page_number":34,"box":{"x":70,"y":585,"width":781,"height":11}},{"id":"2820ce81-4d86-4675-bb14-9999613e88a5","block_type":"box","text":"Securities lending income is generally equal to the total of income earned from the reinvestment of cash collateral","page_number":34,"box":{"x":69,"y":600,"width":814,"height":12}},{"id":"e1883b7c-82a2-4107-adbf-7ddb3b7f6216","block_type":"box","text":"(and excludes collateral investment fees as defined below), and any fees or other payments to and from borrowers of","page_number":34,"box":{"x":69,"y":615,"width":837,"height":11}},{"id":"3f595d15-4f1b-4061-8f09-9c401feb6c89","block_type":"box","text":"securities. As securities lending agent, BIM bears all operational costs directly related to securities lending. The","page_number":34,"box":{"x":69,"y":631,"width":798,"height":11}},{"id":"592814ea-013a-4372-847f-39b493ef3509","block_type":"box","text":"Portfolio is responsible for fees in connection with the investment of cash collateral received for securities on loan in","page_number":34,"box":{"x":69,"y":646,"width":833,"height":11}},{"id":"07092d85-3a7e-4237-917f-5df961617162","block_type":"box","text":"a money market fund managed by BlackRock (the “collateral investment fees”); however, the securities lending agent","page_number":34,"box":{"x":69,"y":661,"width":837,"height":11}},{"id":"3c7fe90e-cc19-4e0e-b6c9-5f94979412a8","block_type":"box","text":"has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral","page_number":34,"box":{"x":69,"y":676,"width":809,"height":11}},{"id":"5f32f4dd-7daf-4c1d-ac73-c1234f9bae88","block_type":"box","text":"investment fees the Portfolio bears to an annual rate of 0.04%. Such money market fund shares will not be subject","page_number":34,"box":{"x":70,"y":691,"width":822,"height":11}},{"id":"ddabb461-8912-40d8-988b-2fdd995236a5","block_type":"box","text":"to a sales load, distribution fee or service fee.","page_number":34,"box":{"x":68,"y":706,"width":330,"height":11}},{"id":"f4a31238-29b8-446c-ab95-68737ba8f827","block_type":"box","text":"To the extent that the Portfolio invests cash collateral in a non-government money market fund, the Portfolio may","page_number":34,"box":{"x":101,"y":729,"width":806,"height":11}},{"id":"857f8fde-79eb-487b-8679-4fc5257caed7","block_type":"box","text":"be subject to a discretionary liquidity fee of up to 2% on all redemptions. Discretionary liquidity fees may be imposed","page_number":34,"box":{"x":69,"y":744,"width":834,"height":11}},{"id":"dd2e859d-08a7-4e02-898e-559831ad64b5","block_type":"box","text":"or 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":34,"box":{"x":69,"y":759,"width":830,"height":11}},{"id":"437238b7-fa80-4148-9077-d1d9bb27a7fa","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":34,"box":{"x":69,"y":774,"width":799,"height":11}},{"id":"8c7038b2-90cf-4994-9b68-7974c65e5f00","block_type":"box","text":"Additionally, the Portfolio will be subject to a mandatory liquidity fee if the money market fund’s total net redemptions","page_number":34,"box":{"x":68,"y":789,"width":839,"height":11}},{"id":"6ef855bf-ae25-47c4-a52e-c72bfa6e148c","block_type":"box","text":"on a single day exceed 5% of the money market fund’s net assets, unless the liquidity costs are de minimis (i.e.,","page_number":34,"box":{"x":69,"y":804,"width":805,"height":12}},{"id":"aad483ed-aa90-45ef-940a-37e2a7eada1f","block_type":"box","text":"less than one basis point (0.01%)). The money market fund will determine the size of the mandatory liquidity fee by","page_number":34,"box":{"x":70,"y":819,"width":822,"height":12}},{"id":"5b188e04-6d98-4a76-94e7-4af22fcd4b73","block_type":"box","text":"making a good faith estimate of certain costs the money market fund would incur if it were to sell a pro rata amount","page_number":34,"box":{"x":69,"y":835,"width":829,"height":11}},{"id":"cd589a2b-4efd-4f87-95d0-7fc3f119eced","block_type":"box","text":"of each security in the portfolio to satisfy the amount of net redemptions on that day. There is no limit to the size of a","page_number":34,"box":{"x":69,"y":850,"width":839,"height":11}},{"id":"dffac2ad-897a-4053-a5ef-c29ec014ff8c","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":34,"box":{"x":69,"y":865,"width":802,"height":11}},{"id":"65b0b294-74a4-4064-ba1c-5e21a53524b5","block_type":"box","text":"portfolio security in good faith and supported by data, it is required to apply a default liquidity fee of 1% on the value","page_number":34,"box":{"x":70,"y":880,"width":830,"height":11}},{"id":"6e0a3b1e-c435-44d8-89e3-8ee059d9e129","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":34,"box":{"x":69,"y":895,"width":838,"height":11}},{"id":"3b2256f6-05a7-4e8d-8506-5574ae06c47d","block_type":"box","text":"Portfolio’s returns on securities lending.","page_number":34,"box":{"x":69,"y":910,"width":285,"height":11}},{"id":"fcdaf5dd-e956-4c75-ba79-992c676210bd","block_type":"box","text":"I-25","page_number":34,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"fd769982-e690-4f38-b6cd-563f2b644ba4","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":34,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c943928c-0100-40e8-bf67-a8532a5b501c","block_type":"box","text":"Under the securities lending program, the Portfolio is categorized into one of several specific asset classes. The","page_number":35,"box":{"x":102,"y":45,"width":800,"height":11}},{"id":"0f46e8b1-7449-472e-85df-d408c2a1203f","block_type":"box","text":"determination of the Portfolio’s asset class category (fixed-income, domestic equity, international equity, or fund of","page_number":35,"box":{"x":69,"y":60,"width":820,"height":11}},{"id":"e9ff2d58-7ef9-4a51-9eac-a0cb0567b51d","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":35,"box":{"x":68,"y":75,"width":809,"height":11}},{"id":"5e160e67-f7f2-4df2-9b35-a80647ad75c5","block_type":"box","text":"Trust and BIM.","page_number":35,"box":{"x":68,"y":90,"width":103,"height":9}},{"id":"42f7b971-6351-4757-9a60-3ded3a648395","block_type":"box","text":"Pursuant to the securities lending agreement effective January 1, 2026: (i) if the Portfolio were to engage in","page_number":35,"box":{"x":102,"y":113,"width":771,"height":11}},{"id":"dd50739a-22c9-4622-95d1-a0cef6bdb3b8","block_type":"box","text":"securities lending, the Portfolio retains 82% of securities lending income (which excludes collateral investment fees);","page_number":35,"box":{"x":69,"y":128,"width":833,"height":11}},{"id":"104a53bc-b5c9-4a94-b60b-2fd547d6e20a","block_type":"box","text":"and (ii) this amount can never be less than 70% of the sum of securities lending income plus collateral investment","page_number":35,"box":{"x":69,"y":143,"width":817,"height":11}},{"id":"55dfaa79-1b0b-4034-b49e-98a559b42a9c","block_type":"box","text":"fees.","page_number":35,"box":{"x":68,"y":158,"width":35,"height":9}},{"id":"fecda71a-ee10-4997-9342-2654d403d196","block_type":"box","text":"In addition, commencing the business day following the date that the aggregate securities lending income","page_number":35,"box":{"x":102,"y":181,"width":753,"height":11}},{"id":"6749b5a7-ceaf-4503-879d-8cd547ee610c","block_type":"box","text":"earned across the BlackRock Multi-Asset Complex in a calendar year exceeds specified thresholds, the Portfolio,","page_number":35,"box":{"x":69,"y":196,"width":804,"height":11}},{"id":"b7fef6f6-e060-4a6d-995e-64c98e822bbf","block_type":"box","text":"pursuant to the current securities lending agreement, will receive for the remainder of that calendar year securities","page_number":35,"box":{"x":70,"y":211,"width":817,"height":11}},{"id":"2c8eb2f1-6ab9-4dd6-804e-62db7afaba75","block_type":"box","text":"lending income as follows: (i) if the Portfolio were to engage in securities lending, 85% of securities lending income","page_number":35,"box":{"x":70,"y":226,"width":820,"height":11}},{"id":"1f803328-4ffa-46f8-90ce-29fd3d8e5164","block_type":"box","text":"(which excludes collateral investment fees); and (ii) this amount can never be less than 70% of the sum of securities","page_number":35,"box":{"x":69,"y":241,"width":832,"height":11}},{"id":"3a50c34e-95bf-4aed-ad9c-d69a2c66504f","block_type":"box","text":"lending income plus collateral investment fees.","page_number":35,"box":{"x":70,"y":256,"width":334,"height":12}},{"id":"8fba7fee-1978-4299-a5d2-9a26f0912cea","block_type":"box","text":"Prior to January 1, 2026, the Portfolio was subject to a different securities lending fee arrangement.","page_number":35,"box":{"x":102,"y":279,"width":716,"height":11}},{"id":"88fa4c10-148f-4b60-af5a-a6724d025c90","block_type":"box","text":"The Portfolio had no income and fees/compensation related to its securities lending activities during its most","page_number":35,"box":{"x":101,"y":302,"width":783,"height":11}},{"id":"502ede01-e5d0-4731-abc5-8dc653a1a99b","block_type":"box","text":"recent fiscal year ended May 31, 2026.","page_number":35,"box":{"x":69,"y":317,"width":281,"height":11}},{"id":"8957daef-4763-4d2b-84fe-357e3a463649","block_type":"box","text":"VIII. Additional Information","page_number":35,"box":{"x":68,"y":347,"width":195,"height":9}},{"id":"6be5e6df-4d15-4982-b832-caf54210369d","block_type":"box","text":"The Trust was organized as a Massachusetts business trust on April 26, 2007 and is registered under the","page_number":35,"box":{"x":101,"y":370,"width":760,"height":11}},{"id":"93c4c035-5c83-4c15-b6ab-f2b5654937b9","block_type":"box","text":"Investment Company Act as an open end, management investment company. Shares of each class of each Portfolio","page_number":35,"box":{"x":70,"y":385,"width":826,"height":11}},{"id":"a76b25b8-3119-48b9-83b4-6efbc073fbe9","block_type":"box","text":"of the Trust bear their pro rata portion of all operating expenses paid by a Portfolio, except transfer agency fees,","page_number":35,"box":{"x":69,"y":400,"width":801,"height":11}},{"id":"e7381430-4568-4bd5-a2f3-ed9ea004ac5b","block_type":"box","text":"certain administrative/ servicing fees and amounts payable under the Trust’s Amended and Restated Distribution","page_number":35,"box":{"x":69,"y":415,"width":810,"height":11}},{"id":"eac995b7-a795-4cf0-9f0e-8274dcb1cefa","block_type":"box","text":"and Service Plan. Each share of a Portfolio of the Trust has a par value of $.001, represents an interest in that","page_number":35,"box":{"x":69,"y":429,"width":795,"height":12}},{"id":"fc359e3c-401e-4d5c-970f-c53fe03bc495","block_type":"box","text":"Portfolio and is entitled to the dividends and distributions earned on that Portfolio’s assets that are declared in the","page_number":35,"box":{"x":69,"y":445,"width":823,"height":9}},{"id":"e98ca0ad-2eb1-4cd1-bcd8-ed6aef0adbb1","block_type":"box","text":"discretion of the Board of Trustees. The number of shares of each series, and class thereof, is unlimited. The Trust’s","page_number":35,"box":{"x":69,"y":460,"width":836,"height":11}},{"id":"7e3968c5-7168-4dca-903e-aa213fd202b3","block_type":"box","text":"shareholders are entitled to one vote for each full share held and proportionate fractional votes for fractional shares","page_number":35,"box":{"x":69,"y":475,"width":829,"height":11}},{"id":"9ef6a4c7-942f-4f9e-8bab-948645a3af10","block_type":"box","text":"held, and will vote in the aggregate and not by class, except where otherwise required by law or as determined by the","page_number":35,"box":{"x":69,"y":491,"width":837,"height":11}},{"id":"3d2af6f2-96d6-4f09-a164-fcea99d98133","block_type":"box","text":"Board of Trustees. Effective November 1, 2010, the BlackRock Income Builder Portfolio changed its name to the","page_number":35,"box":{"x":70,"y":506,"width":803,"height":11}},{"id":"8248735a-7b3f-4d0b-baf6-ae068d1871d1","block_type":"box","text":"BlackRock Global Dividend Income Portfolio. Effective September 23, 2013, the BlackRock Global Dividend Income","page_number":35,"box":{"x":70,"y":521,"width":820,"height":11}},{"id":"8d1e4b17-ffde-4292-b6d6-4f1af1c2fdff","block_type":"box","text":"Portfolio changed its name to the BlackRock Global Dividend Portfolio.","page_number":35,"box":{"x":69,"y":536,"width":501,"height":11}},{"id":"21bf441f-c1e3-45a7-b850-09fa77891621","block_type":"box","text":"Shares of the Trust have non-cumulative voting rights and, accordingly, the holders of more than 50% of the","page_number":35,"box":{"x":102,"y":559,"width":765,"height":11}},{"id":"2e7bec67-0af6-4434-8431-dfea304ac5fd","block_type":"box","text":"Trust’s outstanding shares (irrespective of class) may elect all of the Trustees. Shares have no preemptive rights and","page_number":35,"box":{"x":68,"y":574,"width":838,"height":11}},{"id":"dc6728a9-226e-457d-89a2-57a01b960ac8","block_type":"box","text":"only such conversion and exchange rights as the Board may grant in its discretion. When issued for payment, shares","page_number":35,"box":{"x":69,"y":589,"width":832,"height":11}},{"id":"b7c8a755-f118-4aa2-879a-583f74f2d7b9","block_type":"box","text":"will be fully paid and non-assessable by the Trust.","page_number":35,"box":{"x":68,"y":604,"width":354,"height":11}},{"id":"4c98a222-ddbf-456a-a585-94598f62a85b","block_type":"box","text":"There will normally be no meetings of shareholders for the purpose of electing Trustees unless and until such","page_number":35,"box":{"x":101,"y":627,"width":781,"height":11}},{"id":"957dbbd9-1322-428a-a1fa-e585014b6c36","block_type":"box","text":"time as required by law. At that time, the Trustees then in office will call a shareholders meeting to elect Trustees.","page_number":35,"box":{"x":68,"y":642,"width":816,"height":11}},{"id":"56221456-683d-4635-af70-9abceefdcb3f","block_type":"box","text":"Except as set forth above, the Trustees shall continue to hold office and may appoint successor Trustees. The","page_number":35,"box":{"x":70,"y":657,"width":787,"height":11}},{"id":"06847706-34cc-4230-bff8-4f387100a0fc","block_type":"box","text":"Trust’s Declaration of Trust provides that meetings of the shareholders of the Trust shall be called by the Trustees","page_number":35,"box":{"x":68,"y":672,"width":817,"height":11}},{"id":"50cf2a7e-de82-4639-b69f-c9825b3cec30","block_type":"box","text":"upon the written request of shareholders owning at least 10% of the outstanding shares entitled to vote.","page_number":35,"box":{"x":69,"y":687,"width":744,"height":11}},{"id":"35dc5c81-d248-4ada-84d7-16f66f720995","block_type":"box","text":"Rule 18f-2 under the Investment Company Act provides that any matter required by the provisions of the","page_number":35,"box":{"x":102,"y":710,"width":742,"height":11}},{"id":"e1ec9d6e-9891-4a2c-bad4-d97c4ab38375","block_type":"box","text":"Investment Company Act or applicable state law, or otherwise, to be submitted to the holders of the outstanding","page_number":35,"box":{"x":70,"y":725,"width":800,"height":11}},{"id":"ed31d751-7f32-4a47-9c9f-b8b4e70d3db3","block_type":"box","text":"voting securities of an investment company such as the Trust shall not be deemed to have been effectively acted","page_number":35,"box":{"x":68,"y":740,"width":808,"height":11}},{"id":"67b3a2b9-7592-441b-aa53-2052ba6aefac","block_type":"box","text":"upon unless approved by the holders of a majority of the outstanding shares of each investment portfolio affected by","page_number":35,"box":{"x":69,"y":755,"width":835,"height":11}},{"id":"165bfde4-7cc9-4dea-b327-ee10bc6e1f49","block_type":"box","text":"such matter. Rule 18f-2 further provides that an investment portfolio shall be deemed to be affected by a matter","page_number":35,"box":{"x":69,"y":770,"width":805,"height":11}},{"id":"0c3e9ba7-3244-41c3-b85c-3a29396fbf61","block_type":"box","text":"unless the interests of each investment portfolio in the matter are substantially identical or the matter does not","page_number":35,"box":{"x":69,"y":785,"width":798,"height":12}},{"id":"7dd02678-45b1-49de-a049-ba875a3bb5cf","block_type":"box","text":"affect any interest of the investment portfolio. Under Rule 18f-2, the approval of a management agreement, a","page_number":35,"box":{"x":69,"y":801,"width":782,"height":11}},{"id":"ff7c693b-13a3-46f9-b1a5-f9459a313e63","block_type":"box","text":"distribution plan subject to Rule 12b-1 under the Investment Company Act or any change in a fundamental investment","page_number":35,"box":{"x":69,"y":816,"width":840,"height":11}},{"id":"87c36cb4-3645-426b-a2b4-678771bf38b3","block_type":"box","text":"policy would be effectively acted upon with respect to an investment portfolio only if approved by a majority of the","page_number":35,"box":{"x":70,"y":831,"width":808,"height":11}},{"id":"61f3b10e-7826-4cf7-ac09-b438ec8497bc","block_type":"box","text":"outstanding shares of such investment portfolio. However, Rule 18f-2 also provides that the ratification of the","page_number":35,"box":{"x":69,"y":846,"width":782,"height":11}},{"id":"d55c5ae4-7082-49ce-810e-8829aa3f7abd","block_type":"box","text":"appointment of independent accountants, the approval of principal underwriting contracts and the election of","page_number":35,"box":{"x":69,"y":861,"width":777,"height":11}},{"id":"d1671032-50ef-409c-8784-67b3b3592e2f","block_type":"box","text":"Trustees may be effectively acted upon by shareholders of the Trust voting together in the aggregate without regard","page_number":35,"box":{"x":68,"y":876,"width":823,"height":11}},{"id":"27111d98-abf1-432f-8d81-bdb658077562","block_type":"box","text":"to a particular investment portfolio.","page_number":35,"box":{"x":68,"y":891,"width":252,"height":11}},{"id":"73daf0d2-5278-44a9-afa2-01ae991e395b","block_type":"box","text":"I-26","page_number":35,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"7d2c9a4b-6b9c-42b0-bd52-8284af1285e5","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":35,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3d12b9ac-bc69-45e3-bb28-65402b253e33","block_type":"box","text":"The proceeds received by the Portfolio for each issue or sale of its shares, and all net investment income,","page_number":36,"box":{"x":101,"y":45,"width":758,"height":11}},{"id":"f116be2a-8c31-4df6-b9ff-2735710a132b","block_type":"box","text":"realized and unrealized gain and proceeds thereof, subject only to the rights of creditors, will be specifically allocated","page_number":36,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"7ffe66c0-841e-4354-afb7-83a3c69f3e29","block_type":"box","text":"to and constitute the underlying assets of the Portfolio. The underlying assets of the Portfolio will be segregated on","page_number":36,"box":{"x":68,"y":75,"width":823,"height":11}},{"id":"054caed9-4b6c-4183-839a-ff8c2b88bbba","block_type":"box","text":"the books of account, and will be charged with the liabilities in respect to that Portfolio and with a share of the","page_number":36,"box":{"x":68,"y":90,"width":790,"height":11}},{"id":"495dca8a-c0e4-4636-a55b-2181157cc606","block_type":"box","text":"general liabilities of the Trust. As stated herein, certain expenses of the Portfolio may be charged to a specific class","page_number":36,"box":{"x":68,"y":105,"width":831,"height":11}},{"id":"e442d49a-5458-4ecf-971b-5c76d89073b8","block_type":"box","text":"of shares representing interests in that Portfolio.","page_number":36,"box":{"x":69,"y":120,"width":348,"height":12}},{"id":"eedd7eb3-1df5-4297-a8fd-3c906f3858d3","block_type":"box","text":"The Trust’s Declaration of Trust authorizes the Board of Trustees, without shareholder approval (unless","page_number":36,"box":{"x":101,"y":143,"width":736,"height":11}},{"id":"797a9428-5b57-46bd-bc5b-5885e3a4dc5f","block_type":"box","text":"otherwise required by applicable law), to: (i) sell and convey the assets belonging to a class of shares to another","page_number":36,"box":{"x":69,"y":158,"width":806,"height":11}},{"id":"6580970d-e133-468c-a361-9a3cad9a32e4","block_type":"box","text":"management investment company for consideration which may include securities issued by the purchaser and, in","page_number":36,"box":{"x":69,"y":173,"width":807,"height":11}},{"id":"a985546a-f3ef-4454-8723-787d862d4474","block_type":"box","text":"connection therewith, to cause all outstanding shares of such class to be redeemed at a price which is equal to their","page_number":36,"box":{"x":69,"y":188,"width":835,"height":12}},{"id":"18a88545-2fae-445d-8af7-e219b550075d","block_type":"box","text":"net asset value and which may be paid in cash or by distribution of the securities or other consideration received","page_number":36,"box":{"x":69,"y":203,"width":803,"height":12}},{"id":"a0929bf5-55c7-451d-a73b-6cd4af7ff368","block_type":"box","text":"from the sale and conveyance; (ii) sell and convert the assets belonging to one or more classes of shares into money","page_number":36,"box":{"x":68,"y":218,"width":840,"height":12}},{"id":"c49ccf9d-f8b1-4d9e-a3a6-8462bc47ef70","block_type":"box","text":"and, in connection therewith, to cause all outstanding shares of such classes to be redeemed at their net asset","page_number":36,"box":{"x":69,"y":234,"width":800,"height":11}},{"id":"3c42e908-e588-4a3a-8b74-ab352922664e","block_type":"box","text":"value; or (iii) combine the assets belonging to a class of shares with the assets belonging to one or more other","page_number":36,"box":{"x":68,"y":249,"width":794,"height":11}},{"id":"2593f422-dd16-4ccf-8a19-1be0a351c066","block_type":"box","text":"classes of shares, if the Board of Trustees reasonably determines that such combination will not have a material","page_number":36,"box":{"x":69,"y":264,"width":805,"height":11}},{"id":"ff18913d-f50c-4a7c-9572-a3753bdcde48","block_type":"box","text":"adverse effect on the shareholders of any class participating in such combination and, in connection therewith, to","page_number":36,"box":{"x":69,"y":279,"width":813,"height":11}},{"id":"82c32d00-55ce-438f-99d9-71eafdd04b9a","block_type":"box","text":"cause all outstanding shares of any such class to be redeemed or converted into shares of another class of shares","page_number":36,"box":{"x":69,"y":294,"width":825,"height":11}},{"id":"64143cae-aad0-4917-8248-c2aa10aafbb7","block_type":"box","text":"at their net asset value. The Board of Trustees may authorize the liquidation and termination of any Portfolio or any","page_number":36,"box":{"x":69,"y":309,"width":822,"height":11}},{"id":"fda1fddb-856f-454c-8b06-610d90810065","block_type":"box","text":"class of shares. Upon liquidation of the Portfolio, shareholders of each class of the Portfolio are entitled to share","page_number":36,"box":{"x":69,"y":324,"width":810,"height":11}},{"id":"80e72f6d-5748-4935-9ada-1af6f42a7935","block_type":"box","text":"pro-rata in the net assets belonging to that class available for distribution.","page_number":36,"box":{"x":70,"y":339,"width":526,"height":12}},{"id":"ec848d38-b259-43ca-aeb4-a69dea2f4248","block_type":"box","text":"Shareholder and Trustee Liability of the Trust","page_number":36,"box":{"x":70,"y":370,"width":321,"height":11}},{"id":"62385dfc-e07a-4d41-8013-c982bf50559c","block_type":"box","text":"Under Massachusetts law, shareholders of a business trust may, under certain circumstances, be held","page_number":36,"box":{"x":102,"y":392,"width":734,"height":12}},{"id":"be94cd80-6c6a-4c3b-89a3-3e0d93ff0176","block_type":"box","text":"personally liable as partners for the obligations of the Trust. However, the Trust’s Declaration of Trust provides that","page_number":36,"box":{"x":70,"y":407,"width":822,"height":12}},{"id":"a6e45d2b-24e8-4187-8561-624c465e2893","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":36,"box":{"x":69,"y":423,"width":814,"height":11}},{"id":"ddaa75f9-02b4-4e31-a8c2-3c689d22b712","block_type":"box","text":"obligations of the Trust, and that every note, bond, contract, order or other undertaking made by the Trust shall","page_number":36,"box":{"x":69,"y":438,"width":794,"height":11}},{"id":"07bb95a0-b3a8-43b4-9adf-3f91277f58f7","block_type":"box","text":"contain a provision to the effect that the shareholders are not personally liable thereunder. The Declaration of Trust","page_number":36,"box":{"x":69,"y":453,"width":824,"height":11}},{"id":"80073da4-761e-466d-8268-b9f0e157281c","block_type":"box","text":"provides for indemnification out of property of any shareholder held personally liable solely by reason of his being or","page_number":36,"box":{"x":70,"y":468,"width":827,"height":11}},{"id":"c8f9b4ee-6a52-4fcb-8e1c-02bf1f98c112","block_type":"box","text":"having been a shareholder and not because of such shareholder’s acts or omissions or some other reason. The","page_number":36,"box":{"x":69,"y":483,"width":799,"height":11}},{"id":"176079f5-5bbc-47da-a015-7ea4fa0fbb6c","block_type":"box","text":"Declaration of Trust also provides that the Trust shall, upon request, assume the defense of any claim made against","page_number":36,"box":{"x":70,"y":498,"width":832,"height":11}},{"id":"cf54cec2-cdd4-444b-bc59-f82db317d1cb","block_type":"box","text":"any shareholder for any act or obligation of the Trust, and shall satisfy any judgment thereon.","page_number":36,"box":{"x":69,"y":513,"width":662,"height":12}},{"id":"add8d4a0-9f6c-45b4-b608-a5a1ebde17fe","block_type":"box","text":"The Declaration of Trust further provides that all persons having any claim against the Trustees or Trust shall","page_number":36,"box":{"x":101,"y":536,"width":777,"height":11}},{"id":"46f5f529-5448-4142-bd18-736557b3a078","block_type":"box","text":"look solely to the Trust property for payment; that no Trustee of the Trust shall be personally liable for or on account","page_number":36,"box":{"x":70,"y":551,"width":828,"height":11}},{"id":"5b509e37-84a4-46ab-b8f4-2fa8e330716a","block_type":"box","text":"of any contract, debt, tort, claim, damage, judgment or decree arising out of or connected with the administration or","page_number":36,"box":{"x":69,"y":566,"width":827,"height":11}},{"id":"089aeef9-d374-43f1-bafc-db024536d866","block_type":"box","text":"preservation of the Trust property or the conduct of any business of the Trust; and that no Trustee shall be","page_number":36,"box":{"x":70,"y":581,"width":762,"height":11}},{"id":"06fd91e8-4468-4011-8ee8-04719933499b","block_type":"box","text":"personally liable to any person for any action or failure to act except by reason of such Trustee’s own bad faith, willful","page_number":36,"box":{"x":70,"y":596,"width":836,"height":12}},{"id":"3afcb6d1-3ed4-47b3-bde6-1d41d1587bbb","block_type":"box","text":"misfeasance, gross negligence or reckless disregard of his duties as a Trustee.","page_number":36,"box":{"x":69,"y":612,"width":567,"height":11}},{"id":"fa880736-c399-49ac-9f27-3029d95cfa0f","block_type":"box","text":"With the exception stated, the Declaration of Trust provides that a Trustee is entitled to be indemnified against","page_number":36,"box":{"x":101,"y":634,"width":792,"height":12}},{"id":"3c3e7a5b-8518-4ee2-b31f-e336bae0cc22","block_type":"box","text":"all liabilities and expenses reasonably incurred by such Trustee in connection with the defense or disposition of any","page_number":36,"box":{"x":69,"y":649,"width":825,"height":12}},{"id":"7ae30e49-57eb-46bd-b6a2-798a560b137e","block_type":"box","text":"proceeding in which he may be involved or with which he may be threatened by reason of his being or having been a","page_number":36,"box":{"x":70,"y":664,"width":824,"height":12}},{"id":"93e4c9fd-fbb9-4741-8e05-118482260773","block_type":"box","text":"Trustee, and that the Trust will indemnify officers, representatives and employees of the Trust to the same extent","page_number":36,"box":{"x":68,"y":680,"width":811,"height":11}},{"id":"82bf17a8-f46c-4603-b8ac-12dc445f4199","block_type":"box","text":"that trustees are entitled to indemnification.","page_number":36,"box":{"x":68,"y":695,"width":315,"height":9}},{"id":"bccf5628-1e75-4974-bd03-c894f151b700","block_type":"box","text":"Counsel.","page_number":36,"box":{"x":101,"y":718,"width":62,"height":8}},{"id":"6e7cb42e-0311-47ca-b819-e5bba7967402","block_type":"box","text":"Ropes & Gray LLP, with offices at 1211 Avenue of the Americas, New York, New York 10036, serves as","page_number":36,"box":{"x":170,"y":717,"width":736,"height":12}},{"id":"35cc10f9-28fd-4a54-93dc-484282c4a176","block_type":"box","text":"the Trust’s counsel.","page_number":36,"box":{"x":68,"y":733,"width":141,"height":9}},{"id":"5c6f075b-15b3-4998-b83f-017fc57552f7","block_type":"box","text":"Independent Registered Public Accounting Firm.","page_number":36,"box":{"x":102,"y":755,"width":352,"height":11}},{"id":"ebbd3332-fab8-4165-942d-0a30fcb24888","block_type":"box","text":"Deloitte & Touche LLP, with offices located at 115 Federal","page_number":36,"box":{"x":461,"y":755,"width":412,"height":11}},{"id":"8a548fb5-d818-455f-8292-b73c5e0ab810","block_type":"box","text":"Street, Boston, Massachusetts 02110, serves as the Portfolio’s independent registered public accounting firm.","page_number":36,"box":{"x":69,"y":770,"width":798,"height":12}},{"id":"86100885-a269-4d2f-af08-bc2c00dafb28","block_type":"box","text":"Additional Benchmark Performance Information.","page_number":36,"box":{"x":101,"y":793,"width":351,"height":9}},{"id":"3e2186fb-5ecc-4da7-8037-3f994e26eece","block_type":"box","text":"As noted in the Prospectus, performance of the Fund’s","page_number":36,"box":{"x":458,"y":793,"width":392,"height":11}},{"id":"b1c2d269-d330-4620-bc04-48a081a98676","block_type":"box","text":"benchmark, MSCI All Country World Index (Net), shown in the Prospectus generally assumes the reinvestment of","page_number":36,"box":{"x":69,"y":808,"width":802,"height":11}},{"id":"d8e5f67e-5a85-4aaf-9b94-80ba82b24ecc","block_type":"box","text":"dividends after the deduction of the maximum withholding tax in each country applicable to non-residents of the","page_number":36,"box":{"x":69,"y":823,"width":796,"height":12}},{"id":"c9bb7e2e-b574-46f6-9599-6e811c525e3f","block_type":"box","text":"I-27","page_number":36,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"449739dc-31ca-45d9-b60c-ce090c54e934","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":36,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"abaaa58e-d49a-4e6a-9350-6e08ecd42c3d","block_type":"box","text":"country as determined by the index provider. Please see below for the performance of the MSCI All Country World","page_number":37,"box":{"x":69,"y":45,"width":809,"height":11}},{"id":"73de121e-c1c8-4ece-890d-1be8f7a262be","block_type":"box","text":"Index that does not reflect the deduction of such maximum withholding taxes for the periods noted below:","page_number":37,"box":{"x":70,"y":60,"width":752,"height":11}},{"id":"a202319a-98f0-4815-9a5f-d486058fede8","block_type":"box","text":"For the periods ended 12/31/25","page_number":37,"box":{"x":69,"y":88,"width":193,"height":9}},{"id":"c9834845-152a-4400-8f96-e2a298236689","block_type":"box","text":"Average Annual Total Returns","page_number":37,"box":{"x":68,"y":98,"width":173,"height":9}},{"id":"7d0d04c2-2fa3-45ef-bfa7-2475d4468566","block_type":"box","text":"1 Year 5 Years 10 Years","page_number":37,"box":{"x":716,"y":98,"width":193,"height":7}},{"id":"20fc2676-43a4-437c-99cd-82ea73ac33cc","block_type":"box","text":"MSCI All Country World Index","page_number":37,"box":{"x":70,"y":116,"width":205,"height":11}},{"id":"83fec451-295e-4b82-8017-2f015b167424","block_type":"box","text":"(Reflects no deduction for fees, expenses or taxes) . . . . . . . .","page_number":37,"box":{"x":79,"y":130,"width":431,"height":11}},{"id":"00a0dbd3-b2d6-4710-b63d-c9b8ee0d94c8","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . 22.87% 11.70% 12.28%","page_number":37,"box":{"x":516,"y":130,"width":401,"height":9}},{"id":"db7526f6-8b90-4b03-9ccb-ffca78b43919","block_type":"box","text":"Principal Shareholders.","page_number":37,"box":{"x":102,"y":154,"width":166,"height":11}},{"id":"65bf866f-11cd-436f-869b-5057f702af98","block_type":"box","text":"To the knowledge of the Trust, the following entities owned of record or beneficially 5% or","page_number":37,"box":{"x":274,"y":154,"width":636,"height":12}},{"id":"4e54c32d-b6d8-4da4-a458-2a94ab161967","block_type":"box","text":"more of a class of the Portfolio’s shares as of September 1, 2026:","page_number":37,"box":{"x":69,"y":169,"width":479,"height":11}},{"id":"91de7ad8-2300-45ec-94e4-183212f0b244","block_type":"box","text":"Name Address Percentage Class","page_number":37,"box":{"x":69,"y":198,"width":786,"height":8}},{"id":"212e23ba-7524-47f3-b718-73df5bc24527","block_type":"box","text":"Merrill Lynch, Pierce, Fenner & Smith","page_number":37,"box":{"x":70,"y":215,"width":262,"height":11}},{"id":"7414bb68-112e-4a18-956e-1f6ed6e48b94","block_type":"box","text":"Incorporated","page_number":37,"box":{"x":70,"y":231,"width":87,"height":10}},{"id":"f2cd0c61-189e-4845-b8a7-eb77ff92aa52","block_type":"box","text":"4800 E. Deer Lake Drive","page_number":37,"box":{"x":436,"y":215,"width":175,"height":9}},{"id":"dda38c52-2c39-43c6-b48e-58057ceab859","block_type":"box","text":"3","page_number":37,"box":{"x":496,"y":231,"width":9,"height":8}},{"id":"fc263ebd-8fc2-403a-8fc6-ea348f990e20","block_type":"box","text":"rd","page_number":37,"box":{"x":506,"y":231,"width":6,"height":4}},{"id":"01b5effb-9eef-4e27-8351-45ad14d8e31f","block_type":"box","text":"Floor","page_number":37,"box":{"x":519,"y":231,"width":33,"height":8}},{"id":"cf7cf0a8-4e46-44d4-8b5d-a1362dda6047","block_type":"box","text":"Jacksonville, FL 32246-6484","page_number":37,"box":{"x":420,"y":246,"width":207,"height":10}},{"id":"6dbf833b-40e1-4627-85a6-55d59abec2f6","block_type":"box","text":"29.90% Investor A Shares","page_number":37,"box":{"x":680,"y":215,"width":222,"height":9}},{"id":"c1a897b0-a51e-4077-ab77-85dc047ec978","block_type":"box","text":"Edward D. Jones and Co. 12555 Manchester Road","page_number":37,"box":{"x":70,"y":268,"width":542,"height":9}},{"id":"17099ae4-90bf-4e38-808e-ce49154e2e2e","block_type":"box","text":"St. Louis, MO 63131-3710","page_number":37,"box":{"x":427,"y":283,"width":193,"height":11}},{"id":"3972a6f1-2171-41f2-a183-0fec15e288c3","block_type":"box","text":"16.75% Investor A Shares","page_number":37,"box":{"x":681,"y":268,"width":221,"height":9}},{"id":"0391472e-dc15-449f-bc50-fce2822abe6c","block_type":"box","text":"Morgan Stanley Smith Barney LLC 1 New York Plaza","page_number":37,"box":{"x":70,"y":306,"width":514,"height":11}},{"id":"d990153d-fc9e-4eb0-bd9d-8b36210af714","block_type":"box","text":"12","page_number":37,"box":{"x":492,"y":321,"width":17,"height":9}},{"id":"f7dcf97c-8818-4038-b599-3a0cb5e0c8a0","block_type":"box","text":"th","page_number":37,"box":{"x":510,"y":322,"width":7,"height":4}},{"id":"6550c87f-d773-4134-9f64-6181bd4195a4","block_type":"box","text":"Floor","page_number":37,"box":{"x":523,"y":321,"width":34,"height":9}},{"id":"c0ba0b38-683e-4194-90cd-9d233453e2eb","block_type":"box","text":"New York, NY 10004-1901","page_number":37,"box":{"x":429,"y":336,"width":189,"height":11}},{"id":"116d65bd-ce71-41b9-8ec8-4ba375ab819d","block_type":"box","text":"9.97% Investor A Shares","page_number":37,"box":{"x":685,"y":306,"width":217,"height":9}},{"id":"5ea8b6a9-1060-4813-b28b-b0beab610a15","block_type":"box","text":"National Financial Services LLC 499 Washington Boulevard","page_number":37,"box":{"x":70,"y":359,"width":549,"height":11}},{"id":"e08b21e5-42ee-4e11-b2b7-cd7a191fc3f4","block_type":"box","text":"5","page_number":37,"box":{"x":496,"y":374,"width":9,"height":9}},{"id":"5208c4b6-7b36-4d88-9fe7-a0d46146038b","block_type":"box","text":"th","page_number":37,"box":{"x":505,"y":375,"width":7,"height":4}},{"id":"7cb35324-5aff-447f-b10f-ca6541d86894","block_type":"box","text":"Floor","page_number":37,"box":{"x":519,"y":374,"width":33,"height":9}},{"id":"5cf78a4f-ee55-416c-a74c-08c7b4d01ef9","block_type":"box","text":"Jersey City, NJ 07310-2010","page_number":37,"box":{"x":425,"y":389,"width":197,"height":11}},{"id":"7f0427fb-f08a-4135-a1f3-693f4b221082","block_type":"box","text":"6.58% Investor A Shares","page_number":37,"box":{"x":685,"y":359,"width":217,"height":9}},{"id":"f658c3aa-c3b7-4a9e-bdaa-11b493fe76ab","block_type":"box","text":"Pershing LLC 1 Pershing Plaza","page_number":37,"box":{"x":69,"y":412,"width":513,"height":11}},{"id":"91273c60-a70c-4909-8ecd-9f440969afbb","block_type":"box","text":"Jersey City, NJ 07399-0001","page_number":37,"box":{"x":425,"y":427,"width":197,"height":11}},{"id":"8d51424d-8bb5-49d1-9d7c-74356ee75c34","block_type":"box","text":"6.44% Investor A Shares","page_number":37,"box":{"x":685,"y":412,"width":217,"height":9}},{"id":"8a5f9a21-5ce1-4eea-8892-05d91dc9380b","block_type":"box","text":"Raymond James 880 Carillon Parkway","page_number":37,"box":{"x":70,"y":450,"width":529,"height":11}},{"id":"2a7eff34-b182-4ecc-bda9-1d3115c87858","block_type":"box","text":"Saint Petersburg, FL 33716-1102","page_number":37,"box":{"x":404,"y":465,"width":239,"height":11}},{"id":"8c52fa73-3dee-4f35-a55a-b9f044cf0d80","block_type":"box","text":"16.80% Investor C Shares","page_number":37,"box":{"x":681,"y":450,"width":222,"height":9}},{"id":"0ce86406-573d-4f36-a6dd-d62b86146e92","block_type":"box","text":"Merrill Lynch, Pierce, Fenner & Smith","page_number":37,"box":{"x":70,"y":488,"width":262,"height":11}},{"id":"2cf8773b-096a-4d39-9cc9-632c5a049ed4","block_type":"box","text":"Incorporated","page_number":37,"box":{"x":70,"y":503,"width":87,"height":11}},{"id":"a96911ea-b50c-48ee-a1c8-83d17d92cfc6","block_type":"box","text":"4800 E. Deer Lake Drive","page_number":37,"box":{"x":436,"y":488,"width":175,"height":8}},{"id":"330f91f5-36d3-4e5c-8b68-30cab66fde8f","block_type":"box","text":"3","page_number":37,"box":{"x":496,"y":503,"width":9,"height":9}},{"id":"fe28205b-b3d6-42df-97c5-8f463669145b","block_type":"box","text":"rd","page_number":37,"box":{"x":506,"y":503,"width":6,"height":4}},{"id":"532d70f2-57e6-4ccb-ac36-5de093bc3c15","block_type":"box","text":"Floor","page_number":37,"box":{"x":519,"y":503,"width":33,"height":9}},{"id":"203f6bcb-740f-4c2e-9fe9-cda807bdb8cb","block_type":"box","text":"Jacksonville, FL 32246-6484","page_number":37,"box":{"x":420,"y":518,"width":207,"height":10}},{"id":"418856d5-482a-4ccf-9737-4c8d7c10dcac","block_type":"box","text":"15.83% Investor C Shares","page_number":37,"box":{"x":681,"y":488,"width":222,"height":8}},{"id":"171531a7-307e-4925-8bd0-be3dd05a7455","block_type":"box","text":"Morgan Stanley Smith Barney LLC 1 New York Plaza","page_number":37,"box":{"x":70,"y":540,"width":514,"height":12}},{"id":"00e06d29-c622-4df5-ab46-e86e98f62b2d","block_type":"box","text":"12","page_number":37,"box":{"x":492,"y":556,"width":17,"height":8}},{"id":"0cbf3a7d-067b-4516-b806-77427d77cda6","block_type":"box","text":"th","page_number":37,"box":{"x":510,"y":556,"width":7,"height":4}},{"id":"8690a8d4-e27f-4447-831d-06577f4a1136","block_type":"box","text":"Floor","page_number":37,"box":{"x":523,"y":556,"width":34,"height":8}},{"id":"14e86814-b237-458b-b07c-91aef16cc273","block_type":"box","text":"New York, NY 10004-1901","page_number":37,"box":{"x":429,"y":571,"width":189,"height":10}},{"id":"031e706f-2c9b-4cc6-9344-2dba04eb8ff5","block_type":"box","text":"12.89% Investor C Shares","page_number":37,"box":{"x":681,"y":540,"width":222,"height":9}},{"id":"7e5067d3-b6d7-405c-8064-032adc0daa12","block_type":"box","text":"Pershing LLC 1 Pershing Plaza","page_number":37,"box":{"x":69,"y":593,"width":513,"height":12}},{"id":"52bfe0c7-90e8-4751-b00f-48dff4544b71","block_type":"box","text":"Jersey City, NJ 07399-0001","page_number":37,"box":{"x":425,"y":609,"width":197,"height":11}},{"id":"7d04b6bb-948d-4c12-9160-1f0305fc7929","block_type":"box","text":"5.90% Investor C Shares","page_number":37,"box":{"x":685,"y":593,"width":218,"height":9}},{"id":"508be576-7fb1-4997-b6da-6a88aef797e5","block_type":"box","text":"American Enterprise Investment Services 707 2","page_number":37,"box":{"x":68,"y":631,"width":421,"height":11}},{"id":"058b512f-8006-417d-9786-45f379c68454","block_type":"box","text":"nd","page_number":37,"box":{"x":490,"y":632,"width":8,"height":4}},{"id":"72209c98-8c19-4182-8054-1ce1501e069f","block_type":"box","text":"Avenue South","page_number":37,"box":{"x":504,"y":631,"width":96,"height":9}},{"id":"a22131a9-99ed-4b2a-a228-224f806bf04d","block_type":"box","text":"Minneapolis, MN 55402-2405","page_number":37,"box":{"x":417,"y":646,"width":214,"height":11}},{"id":"37fd8279-4354-4962-a79d-5ba00f8de572","block_type":"box","text":"5.72% Investor C Shares","page_number":37,"box":{"x":685,"y":631,"width":218,"height":9}},{"id":"3b3b5723-b5fd-4120-a447-680091e53756","block_type":"box","text":"National Financial Services LLC 499 Washington Boulevard","page_number":37,"box":{"x":70,"y":669,"width":549,"height":11}},{"id":"b788809a-1aad-4d3e-a6f8-e6c0e60aad7f","block_type":"box","text":"5","page_number":37,"box":{"x":496,"y":684,"width":9,"height":9}},{"id":"9e77dac4-a912-411a-8e63-d89ddeb6a712","block_type":"box","text":"th","page_number":37,"box":{"x":505,"y":684,"width":7,"height":5}},{"id":"5c6cd5c5-189b-4ae0-ada8-bd605505cd96","block_type":"box","text":"Floor","page_number":37,"box":{"x":519,"y":684,"width":33,"height":9}},{"id":"8f25622d-af58-4d9d-af85-1b977fb3eb38","block_type":"box","text":"Jersey City, NJ 07310-2010","page_number":37,"box":{"x":425,"y":699,"width":197,"height":11}},{"id":"2cf34f00-7862-4e36-8738-efdc2a0ba48c","block_type":"box","text":"5.41% Investor C Shares","page_number":37,"box":{"x":685,"y":669,"width":218,"height":9}},{"id":"aaab6c88-8f01-4f23-8e76-322d2e1fd77d","block_type":"box","text":"Merrill Lynch, Pierce, Fenner & Smith","page_number":37,"box":{"x":70,"y":722,"width":262,"height":11}},{"id":"ebd37cbd-5db3-4b69-994e-7041f0fb44e2","block_type":"box","text":"Incorporated","page_number":37,"box":{"x":70,"y":737,"width":87,"height":11}},{"id":"de8aba34-32d7-459d-bf9d-1d6f9ebe5d5c","block_type":"box","text":"4800 E. Deer Lake Drive","page_number":37,"box":{"x":436,"y":722,"width":175,"height":9}},{"id":"05a7e221-b4ea-4b55-aa3d-2a59f1540f85","block_type":"box","text":"3","page_number":37,"box":{"x":496,"y":737,"width":9,"height":9}},{"id":"faef42a0-8675-4a7d-bfe8-ad4f9e9a02fc","block_type":"box","text":"rd","page_number":37,"box":{"x":506,"y":737,"width":6,"height":5}},{"id":"0c4feef7-01c4-4c91-9808-626b2c81c788","block_type":"box","text":"Floor","page_number":37,"box":{"x":519,"y":737,"width":33,"height":9}},{"id":"6f09118d-3786-47d0-8a98-396e9439f53c","block_type":"box","text":"Jacksonville, FL 32246-6484","page_number":37,"box":{"x":420,"y":752,"width":207,"height":11}},{"id":"4f4dd8b0-cf33-4e12-b201-2de45c9d9070","block_type":"box","text":"35.04% Institutional Shares","page_number":37,"box":{"x":680,"y":722,"width":229,"height":9}},{"id":"f36cb903-b277-413a-a7e5-b0419135ae25","block_type":"box","text":"Morgan Stanley Smith Barney LLC 1 New York Plaza","page_number":37,"box":{"x":70,"y":775,"width":514,"height":11}},{"id":"f3edc705-940d-4835-865e-ece3b2bbb74f","block_type":"box","text":"12","page_number":37,"box":{"x":492,"y":790,"width":17,"height":9}},{"id":"7e94e554-2b79-4ac7-a918-a50604a2ed39","block_type":"box","text":"th","page_number":37,"box":{"x":510,"y":790,"width":7,"height":5}},{"id":"a866fc34-2d90-4a88-b27f-14f228396ba4","block_type":"box","text":"Floor","page_number":37,"box":{"x":523,"y":790,"width":34,"height":9}},{"id":"3c5f624a-5444-44ab-a3b6-9808e72017df","block_type":"box","text":"New York, NY 10004-1901","page_number":37,"box":{"x":429,"y":805,"width":189,"height":10}},{"id":"8be384bb-3ffe-494e-b71e-5d2faaa5b660","block_type":"box","text":"17.62% Institutional Shares","page_number":37,"box":{"x":681,"y":775,"width":228,"height":9}},{"id":"d94a90e9-6ea3-44e4-bad4-d5d8832e30e4","block_type":"box","text":"National Financial Services LLC 499 Washington Boulevard","page_number":37,"box":{"x":70,"y":828,"width":549,"height":11}},{"id":"435e7e0a-a2a8-4d13-86a0-a08cda42beae","block_type":"box","text":"5","page_number":37,"box":{"x":496,"y":843,"width":9,"height":9}},{"id":"22fbabdd-fa29-4bec-8bd6-179e1f3fbe67","block_type":"box","text":"th","page_number":37,"box":{"x":505,"y":843,"width":7,"height":5}},{"id":"8283a989-785d-42cc-90e0-d5fcb1deae9c","block_type":"box","text":"Floor","page_number":37,"box":{"x":519,"y":843,"width":33,"height":9}},{"id":"67d4bb61-046c-4c4a-aff5-99bc5fe8dcd5","block_type":"box","text":"Jersey City, NJ 07310-2010","page_number":37,"box":{"x":425,"y":858,"width":197,"height":11}},{"id":"37e0dd1e-1179-432b-804c-82781585584c","block_type":"box","text":"8.35% Institutional Shares","page_number":37,"box":{"x":685,"y":828,"width":224,"height":9}},{"id":"58986f6a-e24e-4512-8805-ef9d7048da2d","block_type":"box","text":"Raymond James 880 Carillon Parkway","page_number":37,"box":{"x":70,"y":881,"width":529,"height":11}},{"id":"b72a0272-81b9-42a1-81b7-ba2ecbeba967","block_type":"box","text":"Saint Petersburg, FL 33716-1102","page_number":37,"box":{"x":404,"y":896,"width":239,"height":11}},{"id":"9e837998-2192-4229-9518-0a52f13f4d49","block_type":"box","text":"6.03% Institutional Shar","page_number":37,"box":{"x":685,"y":881,"width":216,"height":9}},{"id":"6a06aac2-808d-4629-9000-19346c10b5da","block_type":"box","text":"I-28","page_number":37,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"3334220a-3110-45d7-a330-5d1414aa309e","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":37,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a7971b4d-a79f-43c4-b304-74c97aebbe60","block_type":"box","text":"Name Address Percentage Class","page_number":38,"box":{"x":69,"y":49,"width":786,"height":9}},{"id":"e22f92fd-becf-419a-8f18-fdf706accef6","block_type":"box","text":"UBS Financial Services Inc. 1000 Harbor Blvd","page_number":38,"box":{"x":70,"y":67,"width":516,"height":9}},{"id":"fc635bf0-6188-4181-88e2-0e30ddf6dee5","block_type":"box","text":"Weehawken, NJ 07086-6761","page_number":38,"box":{"x":420,"y":82,"width":207,"height":10}},{"id":"c92db0c1-e9c6-42a2-a51b-6ca0eab35bb5","block_type":"box","text":"5.70% Institutional Shares","page_number":38,"box":{"x":685,"y":67,"width":224,"height":9}},{"id":"3ff5bea0-cce9-426b-8823-4f4d6c5bedc3","block_type":"box","text":"Edward D. Jones and Co. 12555 Manchester Road","page_number":38,"box":{"x":70,"y":105,"width":542,"height":8}},{"id":"967d0b3b-b89c-4cf1-ac36-d6191b3beeec","block_type":"box","text":"St. Louis, MO 63131-3710","page_number":38,"box":{"x":427,"y":120,"width":193,"height":10}},{"id":"72af8ca2-4850-438b-8d67-20121e3d65f1","block_type":"box","text":"64.53% Class K Shares","page_number":38,"box":{"x":680,"y":105,"width":214,"height":8}},{"id":"33ef9abc-6e24-44ab-9120-cb7bd2e36944","block_type":"box","text":"Merrill Lynch, Pierce, Fenner & Smith","page_number":38,"box":{"x":70,"y":142,"width":262,"height":11}},{"id":"0a899ae4-b575-434c-8640-2e958fd2be09","block_type":"box","text":"Incorporated","page_number":38,"box":{"x":70,"y":158,"width":87,"height":10}},{"id":"032df198-6da4-4f15-b5e6-004226deb5ce","block_type":"box","text":"4800 E. Deer Lake Drive","page_number":38,"box":{"x":436,"y":142,"width":175,"height":9}},{"id":"60c4ad59-59f6-4df2-9f54-30db037df6be","block_type":"box","text":"3","page_number":38,"box":{"x":496,"y":158,"width":9,"height":8}},{"id":"3640f272-8373-4f25-8a03-8b7f97c7753a","block_type":"box","text":"rd","page_number":38,"box":{"x":506,"y":158,"width":6,"height":4}},{"id":"f541f63b-5924-480e-b2b7-f88b7b4efb0d","block_type":"box","text":"Floor","page_number":38,"box":{"x":519,"y":158,"width":33,"height":8}},{"id":"353c5b72-6398-4e44-8653-1b5e4df7adf6","block_type":"box","text":"Jacksonville, FL 32246-6484","page_number":38,"box":{"x":420,"y":173,"width":207,"height":10}},{"id":"0bb3045a-35d5-4cee-862b-92bc9420fe71","block_type":"box","text":"13.40% Class K Shares","page_number":38,"box":{"x":681,"y":142,"width":213,"height":9}},{"id":"fb2d17bb-20dc-40d6-9cb0-7b0908e927d2","block_type":"box","text":"Shareholder Approvals.","page_number":38,"box":{"x":101,"y":197,"width":167,"height":10}},{"id":"6b017e76-782d-4e21-85b7-885ad64471b6","block_type":"box","text":"As used in this Statement of Additional Information and in the Prospectuses, a “majority","page_number":38,"box":{"x":274,"y":196,"width":631,"height":12}},{"id":"410a8f72-8eae-4190-98c3-e41d8432d3f5","block_type":"box","text":"of the outstanding shares” of a class, series or Portfolio means, with respect to the approval of an investment","page_number":38,"box":{"x":69,"y":212,"width":789,"height":11}},{"id":"9a12bee3-4804-4ab0-a71a-aa9c72fb4a6a","block_type":"box","text":"advisory agreement, a distribution plan or a change in a fundamental investment policy, the lesser of (1) 67% of the","page_number":38,"box":{"x":69,"y":227,"width":825,"height":11}},{"id":"7c05217e-0727-4054-95b2-8e2a22177042","block_type":"box","text":"shares of the particular class, series or Portfolio represented at a meeting at which the holders of more than 50% of","page_number":38,"box":{"x":69,"y":242,"width":833,"height":11}},{"id":"62bedd4c-2fd1-4e8b-8b87-d3cf1ac7e5eb","block_type":"box","text":"the outstanding shares of such class, series or Portfolio are present in person or by proxy, or (2) more than 50% of","page_number":38,"box":{"x":68,"y":257,"width":823,"height":11}},{"id":"966d77fc-3dd5-41ff-bb37-155cb601ba6f","block_type":"box","text":"the outstanding shares of such class, series or Portfolio.","page_number":38,"box":{"x":68,"y":272,"width":406,"height":11}},{"id":"bbd53562-e8f7-4dbb-9316-6f6c7fc8d89e","block_type":"box","text":"IX. Financial Statements","page_number":38,"box":{"x":69,"y":302,"width":179,"height":9}},{"id":"1c4023a0-5df4-4a7e-9916-1fdb50fddea9","block_type":"box","text":"The audited financial statements, financial highlights and notes thereto in the Portfolio’s Annual Financial","page_number":38,"box":{"x":101,"y":325,"width":752,"height":11}},{"id":"6ccd6de2-0034-4f13-8eb5-353be24b7823","block_type":"box","text":"Statements and Additional Information for the fiscal year ended May 31, 2026, as filed with the SEC on Form N-CSR","page_number":38,"box":{"x":69,"y":340,"width":829,"height":11}},{"id":"8d26f3cb-20bd-4f22-8aea-9609deca3cce","block_type":"box","text":"(the “2026 Annual Financial Statements”), are incorporated in this SAI by reference. No other parts of the 2026","page_number":38,"box":{"x":69,"y":355,"width":800,"height":11}},{"id":"2c2356d3-a268-4b2b-8242-9839b9f3c47b","block_type":"box","text":"Annual Financial Statements are incorporated by reference herein. The 2026 Annual Financial Statements have been","page_number":38,"box":{"x":68,"y":370,"width":833,"height":11}},{"id":"88063289-f3e5-41a1-8ecd-67dc59a68f45","block_type":"box","text":"audited by Deloitte & Touche LLP. The report of Deloitte & Touche LLP is incorporated herein by reference. Such 2026","page_number":38,"box":{"x":69,"y":385,"width":839,"height":12}},{"id":"697dfd48-0046-4002-9b70-aee633fd662a","block_type":"box","text":"Annual Financial Statements have been incorporated herein in reliance upon the report of such firm given their","page_number":38,"box":{"x":68,"y":401,"width":790,"height":11}},{"id":"3da89359-3cb4-449b-b266-c78d273a3913","block_type":"box","text":"authority as experts in accounting and auditing. Additional copies of the Portfolio’s annual and semi-annual reports","page_number":38,"box":{"x":69,"y":416,"width":821,"height":11}},{"id":"0bf3e797-1bdd-44b9-9df3-3b0202c46175","block_type":"box","text":"to shareholders and the Portfolio’s Annual and Semi-Annual Financial Statements and Additional Information may be","page_number":38,"box":{"x":68,"y":431,"width":831,"height":11}},{"id":"49617a9e-969d-4700-81d9-bea0caf165da","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":38,"box":{"x":69,"y":446,"width":836,"height":11}},{"id":"99375a1c-121d-4eec-bd56-c8064cc9a09a","block_type":"box","text":"I-29","page_number":38,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"37f5b8d6-4ca6-4403-a812-db231e7331de","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":38,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4744868c-0b88-4e7a-950a-5cb1a85d8133","block_type":"box","text":"PART II","page_number":39,"box":{"x":463,"y":45,"width":52,"height":9}},{"id":"51dd0e94-4527-443d-99fd-c9f517247e41","block_type":"box","text":"Throughout this Statement of Additional Information (“SAI”), each BlackRock-advised fund may be referred to as","page_number":39,"box":{"x":101,"y":67,"width":799,"height":12}},{"id":"85f5820a-c269-4676-bee8-6302786b64c3","block_type":"box","text":"a “Fund” or collectively with others as the “Funds.” Certain Funds may also be referred to as “Municipal Funds” if","page_number":39,"box":{"x":69,"y":82,"width":813,"height":12}},{"id":"1be546fa-8d99-4401-af87-d71a4224f794","block_type":"box","text":"they invest certain of their assets in municipal investments described below.","page_number":39,"box":{"x":68,"y":98,"width":546,"height":11}},{"id":"4617e242-d952-4af8-a69f-72a61aa896f7","block_type":"box","text":"Each Fund is organized either as a Maryland corporation, a Massachusetts business trust or a Delaware","page_number":39,"box":{"x":102,"y":120,"width":745,"height":12}},{"id":"f81911f3-caa6-4464-86c1-e66472c442ab","block_type":"box","text":"statutory trust. In each jurisdiction, nomenclature varies. For ease and clarity of presentation, shares of common","page_number":39,"box":{"x":69,"y":135,"width":805,"height":11}},{"id":"2d2a325a-5b0c-4895-ab21-b417d17ab625","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":39,"box":{"x":69,"y":150,"width":824,"height":11}},{"id":"716cb6ec-d6a5-4367-b494-1c4e954c4d43","block_type":"box","text":"Common Stock are referred to as “shareholders,” the trustees or directors of each Fund are referred to as","page_number":39,"box":{"x":69,"y":166,"width":761,"height":10}},{"id":"2e9cf128-dee1-45d9-858b-c683a91388ef","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":39,"box":{"x":70,"y":181,"width":835,"height":11}},{"id":"19408cf8-17cf-432c-a023-d4ce7bc55de9","block_type":"box","text":"BlackRock Advisors, LLC, BlackRock Fund Advisors or their respective affiliates is the investment adviser or manager","page_number":39,"box":{"x":70,"y":196,"width":832,"height":11}},{"id":"e131d9a3-f1c3-4608-abf4-8ac784dcf71a","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":39,"box":{"x":69,"y":211,"width":826,"height":11}},{"id":"4be29451-3840-4cc9-9b03-40a13f6dcb69","block_type":"box","text":"management agreement applicable to each Fund is referred to as the “Management Agreement.” Each Fund’s","page_number":39,"box":{"x":69,"y":226,"width":786,"height":11}},{"id":"3303c5de-36c1-4d20-89e4-13ae2551ac86","block_type":"box","text":"Articles of Incorporation or Declaration of Trust, together with all amendments thereto, is referred to as its “charter.”","page_number":39,"box":{"x":68,"y":241,"width":834,"height":11}},{"id":"312b6830-2d47-497c-8f25-c438a107e22d","block_type":"box","text":"The Investment Company Act of 1940, as amended, is referred to herein as the “Investment Company Act.” The","page_number":39,"box":{"x":68,"y":256,"width":801,"height":11}},{"id":"af82e66f-3c85-4461-b87e-14e34169dc43","block_type":"box","text":"Securities Act of 1933, as amended, is referred to herein as the “Securities Act.” The Securities and Exchange","page_number":39,"box":{"x":69,"y":271,"width":793,"height":12}},{"id":"1c662b13-4219-40ee-bebf-890d0465f4e0","block_type":"box","text":"Commission is referred to herein as the “Commission” or the “SEC.”","page_number":39,"box":{"x":69,"y":286,"width":492,"height":10}},{"id":"2ec4ac8e-e309-4707-8af3-3b3e5f676de8","block_type":"box","text":"Certain Funds are “feeder” funds (each, a “Feeder Fund”) that invest all or a portion of their assets in a","page_number":39,"box":{"x":102,"y":309,"width":741,"height":11}},{"id":"ee5f4d99-9409-46c4-b7ef-fa454a9b5cf0","block_type":"box","text":"corresponding “master” portfolio (each, a “Master Portfolio”) of a master limited liability company (each, a “Master","page_number":39,"box":{"x":69,"y":324,"width":824,"height":12}},{"id":"6ff3df77-f138-4e54-b38b-8f55e83cdf02","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":39,"box":{"x":70,"y":339,"width":814,"height":12}},{"id":"4276beba-a10e-4246-b70f-ca90f427220f","block_type":"box","text":"made at the level of the Master Portfolio. This structure is sometimes called a “master/feeder” structure. A Feeder","page_number":39,"box":{"x":69,"y":355,"width":825,"height":11}},{"id":"887a93e9-2f5f-4942-9cae-b02a51dcf6d9","block_type":"box","text":"Fund’s investment results will correspond directly to the investment results of the underlying Master Portfolio in","page_number":39,"box":{"x":70,"y":370,"width":795,"height":11}},{"id":"b1705310-4ba5-4c7c-9a92-f6278e7bd08c","block_type":"box","text":"which it invests. For simplicity, this SAI uses the term “Fund” to include both a Feeder Fund and its Master Portfolio.","page_number":39,"box":{"x":68,"y":385,"width":830,"height":11}},{"id":"241a16cd-01ef-4196-ac71-07f0f81b99bc","block_type":"box","text":"In addition to containing information about the Funds, Part II of this SAI contains general information about all","page_number":39,"box":{"x":102,"y":407,"width":783,"height":12}},{"id":"6462dd3d-a2b4-4d92-b908-331a9e4717bf","block_type":"box","text":"funds in the BlackRock-advised fund complex. Certain information contained herein may not be relevant to a","page_number":39,"box":{"x":68,"y":423,"width":772,"height":11}},{"id":"89107ec6-0c9a-404d-8ec6-dafa23d12987","block_type":"box","text":"particular Fund.","page_number":39,"box":{"x":70,"y":438,"width":109,"height":11}},{"id":"009ab3bc-858e-45ab-a61c-f13561711e65","block_type":"box","text":"INVESTMENT RISKS AND CONSIDERATIONS","page_number":39,"box":{"x":314,"y":467,"width":351,"height":10}},{"id":"6b15b864-5cdf-4b03-85cd-575992132785","block_type":"box","text":"Set forth below are descriptions of some of the types of investments and investment strategies that one or more","page_number":39,"box":{"x":102,"y":490,"width":805,"height":11}},{"id":"a5202d72-2943-4990-b4c4-68f699692eea","block_type":"box","text":"of the Funds may use, and the risks and considerations associated with those investments and investment","page_number":39,"box":{"x":69,"y":505,"width":765,"height":11}},{"id":"0c4ae092-6273-4f7f-9d84-47023a603c6c","block_type":"box","text":"strategies. Please see each Fund’s prospectuses (the “Prospectus”) and the “Investment Objective and Policies,”","page_number":39,"box":{"x":69,"y":520,"width":811,"height":12}},{"id":"ced63a05-b01c-42a8-8c2b-2884ecf5179a","block_type":"box","text":"“Investment Objectives and Policies” or “Investment Strategies and Risks of the Fund” section, as applicable, of Part","page_number":39,"box":{"x":70,"y":535,"width":837,"height":12}},{"id":"70b3a12f-1468-4779-ae27-6e03b122ea7b","block_type":"box","text":"I of this SAI for further information on each Fund’s investment policies and risks. Information contained in this","page_number":39,"box":{"x":70,"y":550,"width":785,"height":11}},{"id":"02866375-6896-4dab-ad4d-b28d8a9ad970","block_type":"box","text":"section about the risks and considerations associated with a Fund’s investments and/or investment strategies","page_number":39,"box":{"x":69,"y":566,"width":791,"height":11}},{"id":"2ee52653-4941-42f2-a3ce-c227ee5fc23a","block_type":"box","text":"applies only to those Funds specifically identified in Part I of this SAI as making each type of investment or using","page_number":39,"box":{"x":69,"y":581,"width":805,"height":11}},{"id":"eebc7004-7936-4432-8970-cb88f82ef4f5","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":39,"box":{"x":69,"y":596,"width":835,"height":11}},{"id":"2c06db25-4bb7-4d16-9201-1fdf8a99e1a3","block_type":"box","text":"a part of that Covered Fund’s SAI and should not be relied on by investors in that Covered Fund. Only information that","page_number":39,"box":{"x":69,"y":611,"width":840,"height":11}},{"id":"1be0010c-4d96-48ca-b031-df3cae4b40c8","block_type":"box","text":"is clearly identified as applicable to a Covered Fund is considered to form a part of that Covered Fund’s SAI.","page_number":39,"box":{"x":70,"y":626,"width":770,"height":11}},{"id":"eeb0db32-7813-46a6-b2d0-3087c1e5c42f","block_type":"box","text":"Asset-Backed Securities.","page_number":39,"box":{"x":101,"y":649,"width":183,"height":9}},{"id":"bfc0cded-2575-4e33-a553-02580438ed56","block_type":"box","text":"Asset-backed securities are securities backed by home equity loans, installment sale","page_number":39,"box":{"x":290,"y":649,"width":607,"height":11}},{"id":"68556e49-f510-46e3-9354-18965c9b4366","block_type":"box","text":"contracts, credit card receivables or other assets. Asset-backed securities are “pass-through” securities, meaning","page_number":39,"box":{"x":69,"y":664,"width":814,"height":11}},{"id":"16bbe042-666f-406e-8d28-3448e8b217a0","block_type":"box","text":"that principal and interest payments — net of expenses — made by the borrower on the underlying assets (such as","page_number":39,"box":{"x":68,"y":679,"width":825,"height":11}},{"id":"82328025-b92a-4874-9420-10cca0a61064","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":39,"box":{"x":69,"y":694,"width":813,"height":11}},{"id":"64e10c5e-270e-4cf3-8c8b-4d899898aa82","block_type":"box","text":"fixed-income securities, typically increases when interest rates fall and decreases when interest rates rise. However,","page_number":39,"box":{"x":68,"y":709,"width":830,"height":11}},{"id":"0ee785b9-69d2-4f0c-ae5a-c6c21a9e96e5","block_type":"box","text":"asset-backed securities differ from traditional fixed-income securities because of their potential for prepayment. The","page_number":39,"box":{"x":69,"y":724,"width":827,"height":11}},{"id":"8e98f0a2-e6bb-492a-be2f-1db7e9893eb8","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":39,"box":{"x":70,"y":739,"width":813,"height":12}},{"id":"72cbd7d4-920d-4e49-bff7-d616b1591a3f","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":39,"box":{"x":68,"y":755,"width":818,"height":11}},{"id":"d71e0109-61bf-42b7-99a2-c649c611a469","block_type":"box","text":"the underlying assets. In a period of declining interest rates, borrowers may prepay the underlying assets more","page_number":39,"box":{"x":68,"y":770,"width":792,"height":11}},{"id":"f350dd1c-dfe2-431f-8578-d6a7e329b4fc","block_type":"box","text":"quickly than anticipated, thereby reducing the yield to maturity and the average life of the asset-backed securities.","page_number":39,"box":{"x":69,"y":785,"width":811,"height":11}},{"id":"5cc5dc88-ce3e-4b1b-bdea-aff75e880a25","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":39,"box":{"x":70,"y":800,"width":832,"height":11}},{"id":"57b42815-eef9-4f54-983e-8dacd223bc57","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":39,"box":{"x":70,"y":815,"width":792,"height":11}},{"id":"ca8ad1bf-a4c2-4d94-8bf6-0371fa0ab666","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":39,"box":{"x":69,"y":830,"width":825,"height":11}},{"id":"3c7f99a4-c1e7-4695-96cb-7279f642c3e9","block_type":"box","text":"such securities at a discount, both scheduled payments and unscheduled prepayments will increase current and total","page_number":39,"box":{"x":69,"y":846,"width":838,"height":10}},{"id":"6ca26ed6-6897-4b98-aad5-efa37194b369","block_type":"box","text":"returns and unscheduled prepayments will also accelerate the recognition of income which, when distributed to","page_number":39,"box":{"x":69,"y":860,"width":793,"height":12}},{"id":"2e78918a-9f28-4d3a-a533-137f7ce81b77","block_type":"box","text":"shareholders, will be taxable as ordinary income. In a period of rising interest rates, prepayments of the underlying","page_number":39,"box":{"x":69,"y":875,"width":819,"height":12}},{"id":"74c46d01-e9a8-4bc7-b912-41be441b2367","block_type":"box","text":"assets may occur at a slower than expected rate, creating maturity extension risk. This particular risk may effectively","page_number":39,"box":{"x":69,"y":891,"width":834,"height":11}},{"id":"fa587223-9d53-4732-af19-c13ea7d70c3c","block_type":"box","text":"change a security that was considered short- or intermediate-term at the time of purchase into a longer term security.","page_number":39,"box":{"x":69,"y":906,"width":837,"height":11}},{"id":"cefc9813-0660-4cc9-9c3d-b3b299ba4c54","block_type":"box","text":"II-1","page_number":39,"box":{"x":478,"y":943,"width":23,"height":9}},{"id":"274a2da8-30ab-4f2c-b52f-9b2989c1f1d4","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":39,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"74bd5e8e-eb79-4841-b2d0-25cd2f50254a","block_type":"box","text":"Since the value of longer-term securities generally fluctuates more widely in response to changes in interest rates","page_number":40,"box":{"x":69,"y":45,"width":810,"height":11}},{"id":"80dece30-d1a6-42eb-9ce5-c14de992cc69","block_type":"box","text":"than does the value of shorter-term securities, maturity extension risk could increase the volatility of the Fund. When","page_number":40,"box":{"x":68,"y":60,"width":833,"height":11}},{"id":"04b916e9-1e32-4fea-979e-0aa5a36f0fa6","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":40,"box":{"x":70,"y":75,"width":827,"height":11}},{"id":"7a3cdcba-bbc9-4c7b-a529-e712242273e2","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":40,"box":{"x":68,"y":90,"width":805,"height":11}},{"id":"6b0830db-3dd2-499f-9664-2c7c8aa5127a","block_type":"box","text":"retard prepayments and thus affect maturities.","page_number":40,"box":{"x":69,"y":105,"width":333,"height":11}},{"id":"d391e16a-3026-4ee3-8714-2c96a0c41322","block_type":"box","text":"Asset-Based Securities.","page_number":40,"box":{"x":101,"y":128,"width":173,"height":9}},{"id":"9221f62c-2b5c-4b65-8c0b-9cd9696fe274","block_type":"box","text":"Certain Funds may invest in debt, preferred or convertible securities, the principal","page_number":40,"box":{"x":281,"y":128,"width":582,"height":11}},{"id":"d018154f-f5bf-4b45-ac20-6d0c676e94dd","block_type":"box","text":"amount, redemption terms or conversion terms of which are related to the market price of some natural resource","page_number":40,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"0a4770c5-7b21-4622-8a73-936e6d2f43a8","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":40,"box":{"x":69,"y":158,"width":815,"height":11}},{"id":"be733978-0ab0-404d-862f-938002fc7870","block_type":"box","text":"asset-based securities that are rated, or are issued by issuers that have outstanding debt obligations rated,","page_number":40,"box":{"x":69,"y":173,"width":769,"height":11}},{"id":"dba0a777-712f-4705-a2c4-e8417e17b283","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":40,"box":{"x":70,"y":188,"width":833,"height":12}},{"id":"622fdaea-6c4f-41a7-8236-dc1ab9395699","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":40,"box":{"x":70,"y":203,"width":795,"height":12}},{"id":"f110ff3e-60f9-4769-b679-fc4650325d62","block_type":"box","text":"issuers that the Manager has determined to be of similar creditworthiness. Obligations ranked in the fourth highest","page_number":40,"box":{"x":70,"y":218,"width":824,"height":12}},{"id":"be1b88b0-3957-4a10-b2f1-86cbfd91c0cf","block_type":"box","text":"rating category, while considered “investment grade,” may have certain speculative characteristics and may be more","page_number":40,"box":{"x":69,"y":234,"width":832,"height":11}},{"id":"5d0855d4-ecfd-4c43-a696-99ae247a45f9","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":40,"box":{"x":70,"y":249,"width":797,"height":11}},{"id":"f83cbc9a-0af4-4398-a3f4-db0a07caf206","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":40,"box":{"x":69,"y":264,"width":768,"height":11}},{"id":"f355c757-3eb1-4e78-a95c-121918da2339","block_type":"box","text":"determining the creditworthiness of the issuer. While the market prices for an asset-based security and the related","page_number":40,"box":{"x":69,"y":279,"width":819,"height":11}},{"id":"05d14748-41f3-4f4a-90c1-e371b510571c","block_type":"box","text":"natural resource asset generally are expected to move in the same direction, there may not be perfect correlation in","page_number":40,"box":{"x":69,"y":294,"width":829,"height":11}},{"id":"51fe079f-7be0-4289-9692-303f82f93bec","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":40,"box":{"x":68,"y":309,"width":780,"height":11}},{"id":"a990ce66-7943-4bd8-987a-c82e6e240eb6","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":40,"box":{"x":69,"y":325,"width":815,"height":11}},{"id":"de8b58c8-41e2-4126-b959-10fad0a0cb4a","block_type":"box","text":"preferred dividends at below market (or even relatively nominal) rates. Certain asset-based securities may be payable","page_number":40,"box":{"x":70,"y":339,"width":837,"height":12}},{"id":"0fc6205b-3e85-4695-b41b-38d4ac5e365c","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":40,"box":{"x":69,"y":355,"width":812,"height":11}},{"id":"aa731d4a-cf70-4d04-973b-9e4f7757c9bb","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":40,"box":{"x":69,"y":370,"width":836,"height":11}},{"id":"faff2a30-e1a3-4216-aa22-24bb568814de","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":40,"box":{"x":69,"y":385,"width":778,"height":11}},{"id":"e926392b-984b-422f-b861-c2dcef67b701","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":40,"box":{"x":69,"y":400,"width":819,"height":11}},{"id":"d527e23e-26bc-45dc-8dbb-1893658d4e39","block_type":"box","text":"appreciation in the underlying asset.","page_number":40,"box":{"x":69,"y":415,"width":258,"height":11}},{"id":"2676ce90-b320-4d0d-93eb-a0764543c50f","block_type":"box","text":"Precious Metal-Related Securities.","page_number":40,"box":{"x":102,"y":438,"width":243,"height":9}},{"id":"64f8eed6-18ad-423e-ae3c-751efb8294dc","block_type":"box","text":"A Fund may invest in the equity and other securities of companies that","page_number":40,"box":{"x":351,"y":438,"width":503,"height":11}},{"id":"69b4ccb6-15ee-4253-b235-08d8e4bbd82f","block_type":"box","text":"explore for, extract, process or deal in precious metals (","page_number":40,"box":{"x":69,"y":453,"width":398,"height":11}},{"id":"79474403-2573-403c-95de-6e4fca04a0ad","block_type":"box","text":"e.g.","page_number":40,"box":{"x":469,"y":454,"width":25,"height":10}},{"id":"28844aa2-eead-45a1-a70e-acbbd876743f","block_type":"box","text":", gold, silver and platinum), and in asset-based securities","page_number":40,"box":{"x":497,"y":453,"width":407,"height":11}},{"id":"30ceb635-ba9e-44e0-b65b-82c8a995fbbb","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":40,"box":{"x":70,"y":468,"width":801,"height":11}},{"id":"99ad251e-785a-47cb-8cc1-aadda6ae7249","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":40,"box":{"x":70,"y":483,"width":815,"height":11}},{"id":"468ee73b-99e0-41e4-8a8e-636a9da097d2","block_type":"box","text":"are expected to benefit from inflationary pressure or other economic, political or financial uncertainty or instability.","page_number":40,"box":{"x":69,"y":498,"width":815,"height":11}},{"id":"4a9fc94f-2187-40bd-9a64-bee5e6e022df","block_type":"box","text":"Based on historical experience, during periods of economic or financial instability the securities of companies","page_number":40,"box":{"x":70,"y":513,"width":779,"height":12}},{"id":"722ef6f6-bff2-45b1-9de6-b06589f910be","block_type":"box","text":"involved in precious metals may be subject to extreme price fluctuations, reflecting the high volatility of precious","page_number":40,"box":{"x":70,"y":528,"width":799,"height":12}},{"id":"16575459-a6bb-49f2-8cb2-939bddde9893","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":40,"box":{"x":69,"y":543,"width":838,"height":12}},{"id":"5fc30168-d61c-41ad-b5a8-68223e484f53","block_type":"box","text":"precious metal-related companies, which may, in turn, adversely affect the financial condition of such companies. The","page_number":40,"box":{"x":70,"y":559,"width":838,"height":11}},{"id":"1d68b216-fdfa-419b-9a10-42e98c92da48","block_type":"box","text":"major producers of gold include the Republic of South Africa, Russia, Canada, the United States, Brazil and Australia.","page_number":40,"box":{"x":69,"y":574,"width":835,"height":11}},{"id":"80823d9d-7cea-463c-abe1-afaedba93b1b","block_type":"box","text":"Sales of gold by Russia are largely unpredictable and often relate to political and economic considerations rather","page_number":40,"box":{"x":69,"y":589,"width":806,"height":11}},{"id":"13225744-aa6d-4a7b-908c-b000f2712036","block_type":"box","text":"than to market forces. Economic, financial, social and political factors within South Africa may significantly affect","page_number":40,"box":{"x":68,"y":604,"width":805,"height":11}},{"id":"f67a4338-50d5-4982-bfd0-2bc6ac52940d","block_type":"box","text":"South African gold production.","page_number":40,"box":{"x":69,"y":619,"width":213,"height":11}},{"id":"ceae3577-143a-4f35-af43-ccd86e9043d8","block_type":"box","text":"Borrowing and Leverage.","page_number":40,"box":{"x":102,"y":642,"width":179,"height":11}},{"id":"b0f296e7-d56b-4a40-8661-82359b9dd078","block_type":"box","text":"Each Fund may borrow as a temporary measure for extraordinary or emergency","page_number":40,"box":{"x":288,"y":642,"width":563,"height":11}},{"id":"4f4d75e8-7d90-4e5c-8044-c18d7185f4ab","block_type":"box","text":"purposes, including to meet redemptions or to settle securities transactions. Certain Funds will not purchase","page_number":40,"box":{"x":70,"y":657,"width":777,"height":11}},{"id":"cc02eaf3-8ffc-4e41-b2cd-c49bfb21c847","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":40,"box":{"x":69,"y":672,"width":806,"height":11}},{"id":"16ca0eb8-c0c4-4c1d-91c9-663965ac22ee","block_type":"box","text":"(b) to exercise subscription rights when outstanding borrowings have been obtained exclusively for settlements of","page_number":40,"box":{"x":69,"y":687,"width":810,"height":11}},{"id":"aa22b4fa-a3e0-4339-a21d-58f99e0e650e","block_type":"box","text":"other securities transactions.","page_number":40,"box":{"x":69,"y":703,"width":207,"height":8}},{"id":"e01f9ee0-b000-4dbf-a6b5-4a8bc0850fd1","block_type":"box","text":"Certain Funds may also borrow in order to make investments, to the extent disclosed in such Fund’s Prospectus.","page_number":40,"box":{"x":102,"y":725,"width":806,"height":11}},{"id":"0094feee-5321-4694-a5e0-2b99de04c9a4","block_type":"box","text":"The purchase of securities while borrowings are outstanding will have the effect of leveraging the Fund. Such","page_number":40,"box":{"x":68,"y":740,"width":776,"height":11}},{"id":"14cd8016-ae6a-43df-a639-49d00ed0d1a9","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":40,"box":{"x":70,"y":755,"width":813,"height":11}},{"id":"e670ea4c-7d5a-42ae-bb90-5d2b63b97208","block_type":"box","text":"reduce net income. The use of leverage by a Fund creates an opportunity for greater total return, but, at the same","page_number":40,"box":{"x":69,"y":770,"width":813,"height":12}},{"id":"e5b93e66-61ef-4ccc-bdb1-140747624cbe","block_type":"box","text":"time, creates special risks. For example, leveraging may exaggerate changes in the net asset value (“NAV”) of Fund","page_number":40,"box":{"x":68,"y":785,"width":823,"height":12}},{"id":"e76ed9fd-237f-4e3d-b298-dd03041cb6f5","block_type":"box","text":"shares and in the yield on the Fund’s portfolio. Although the principal of such borrowings will be fixed, the Fund’s","page_number":40,"box":{"x":69,"y":801,"width":806,"height":11}},{"id":"992ab4eb-0068-444c-8840-029992a4db80","block_type":"box","text":"assets may change in value during the time the borrowings are outstanding. Borrowings will create interest expenses","page_number":40,"box":{"x":69,"y":816,"width":835,"height":11}},{"id":"367af8a3-8af2-40f2-820d-40e5ddb49ec5","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":40,"box":{"x":68,"y":831,"width":835,"height":11}},{"id":"030f7839-a6d7-4de4-815f-ac2b1733504c","block_type":"box","text":"capital appreciation derived from securities purchased with borrowed funds exceeds the interest the Fund will have to","page_number":40,"box":{"x":69,"y":846,"width":838,"height":11}},{"id":"0743480b-b3db-4cc9-a53f-8f3d4826d82f","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":40,"box":{"x":70,"y":861,"width":835,"height":11}},{"id":"8f16f13b-f798-4282-8182-2218eeb22536","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":40,"box":{"x":69,"y":876,"width":825,"height":11}},{"id":"6418fa34-baf9-4145-9d93-33ef99437c2d","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":40,"box":{"x":69,"y":891,"width":837,"height":12}},{"id":"5b7eb964-9f62-4a46-b26a-022263e154f7","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":40,"box":{"x":68,"y":906,"width":805,"height":12}},{"id":"dd434198-29d4-4a1c-9f41-2af9a5e9be38","block_type":"box","text":"II-2","page_number":40,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"ceb0bba5-5fff-4315-a661-644dfaf24b28","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":40,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"de686e7f-6699-43f3-b8d0-ea19176fe1d4","block_type":"box","text":"nevertheless may determine to maintain the Fund’s leveraged position if it expects that the benefits to the Fund’s","page_number":41,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"f182f00c-5c75-45ed-8cdd-298783ed44d8","block_type":"box","text":"shareholders of maintaining the leveraged position will outweigh the current reduced return.","page_number":41,"box":{"x":69,"y":60,"width":653,"height":11}},{"id":"4f3ae8c3-56e5-40ea-8485-868d11df3c7c","block_type":"box","text":"Certain types of borrowings by a Fund may result in the Fund being subject to covenants in credit agreements","page_number":41,"box":{"x":102,"y":82,"width":780,"height":12}},{"id":"aee3577a-0d31-4c65-88f3-995b6fd06318","block_type":"box","text":"relating to asset coverage, portfolio composition requirements and other matters. It is not anticipated that","page_number":41,"box":{"x":69,"y":98,"width":759,"height":11}},{"id":"9b96db9f-24a8-48a2-94cf-9d0af620d248","block_type":"box","text":"observance of such covenants would impede the Manager from managing a Fund’s portfolio in accordance with the","page_number":41,"box":{"x":69,"y":113,"width":822,"height":11}},{"id":"f11fb5f4-428f-48c6-a32a-d0e341bec696","block_type":"box","text":"Fund’s investment objectives and policies. However, a breach of any such covenants not cured within the specified","page_number":41,"box":{"x":70,"y":128,"width":816,"height":11}},{"id":"2334e8eb-509a-4b39-af3e-8fb213d12ff0","block_type":"box","text":"cure period may result in acceleration of outstanding indebtedness and require the Fund to dispose of portfolio","page_number":41,"box":{"x":69,"y":143,"width":792,"height":11}},{"id":"49c991d2-288c-4d46-a997-96f77bd86ce5","block_type":"box","text":"investments at a time when it may be disadvantageous to do so.","page_number":41,"box":{"x":70,"y":158,"width":459,"height":11}},{"id":"3b82ed02-e03f-4ca3-824f-8f37abe04eed","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":41,"box":{"x":102,"y":181,"width":786,"height":11}},{"id":"677a3b5c-483f-409b-b8dd-8622565fe43e","block_type":"box","text":"no less favorable than those available from comparable sources of funds in the marketplace.","page_number":41,"box":{"x":69,"y":196,"width":663,"height":11}},{"id":"69ca1c09-5280-4d7b-af4d-4c628841b5a7","block_type":"box","text":"Cash Management.","page_number":41,"box":{"x":102,"y":219,"width":140,"height":11}},{"id":"a60003af-14a5-4699-842b-b1b85f051b1b","block_type":"box","text":"Generally, the Manager will employ futures and options on futures to provide liquidity","page_number":41,"box":{"x":249,"y":218,"width":603,"height":12}},{"id":"60608020-10a0-469f-b2ae-2de698fa8d98","block_type":"box","text":"necessary to meet anticipated redemptions or for day-to-day operating purposes. However, if considered appropriate","page_number":41,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"e1bae603-acba-4354-a6a9-19316315b07e","block_type":"box","text":"in the opinion of the Manager, a portion of a Fund’s assets may be invested in certain types of instruments with","page_number":41,"box":{"x":70,"y":249,"width":799,"height":11}},{"id":"30bbe25e-30c3-4591-9570-bfee98d1e0fd","block_type":"box","text":"remaining maturities of 397 days or less for liquidity purposes. Such instruments would consist of: (i) obligations of","page_number":41,"box":{"x":69,"y":264,"width":826,"height":11}},{"id":"ba5de302-be1b-4296-a893-2ea0b85486b5","block_type":"box","text":"the U.S. Government, its agencies, instrumentalities, authorities or political subdivisions (“U.S. Government","page_number":41,"box":{"x":68,"y":279,"width":772,"height":11}},{"id":"8d4669e7-b063-4904-880b-4a19c5af820f","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":41,"box":{"x":69,"y":294,"width":823,"height":11}},{"id":"9e657962-4f45-49c4-b656-1dc7b49b8101","block_type":"box","text":"comparable quality in the opinion of the Manager; (iii) commercial paper; (iv) bank obligations, including negotiable","page_number":41,"box":{"x":69,"y":309,"width":816,"height":11}},{"id":"590a3b3c-3fbc-410b-b3af-b693ed525897","block_type":"box","text":"certificates of deposit, time deposits and bankers’ acceptances; and (v) repurchase agreements. At the time the","page_number":41,"box":{"x":69,"y":324,"width":804,"height":12}},{"id":"5d640412-f99b-4910-b8c9-c9a812daa440","block_type":"box","text":"Fund invests in commercial paper, bank obligations or repurchase agreements, the issuer or the issuer’s parent must","page_number":41,"box":{"x":70,"y":340,"width":839,"height":11}},{"id":"089d4d80-234c-4ebc-b90e-4b18bfe643d3","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":41,"box":{"x":69,"y":355,"width":824,"height":11}},{"id":"e618c36b-1c4e-49df-8451-8ae09116985b","block_type":"box","text":"obligations or other short-term obligations rated Prime-1 by Moody’s or A-1 by S&P; or, if no such ratings are","page_number":41,"box":{"x":69,"y":370,"width":771,"height":11}},{"id":"d29c9d0c-6f92-47ff-85b3-c491fa39da34","block_type":"box","text":"available, the instrument must be of comparable quality in the opinion of the Manager. For more information on","page_number":41,"box":{"x":69,"y":385,"width":793,"height":11}},{"id":"f12b1ed1-f6de-4427-b22c-e8baffceae11","block_type":"box","text":"money market instruments, see “Money Market Securities” below.","page_number":41,"box":{"x":69,"y":400,"width":472,"height":11}},{"id":"93025644-2317-4d36-a45b-00105c10923d","block_type":"box","text":"Collateralized Debt Obligations.","page_number":41,"box":{"x":102,"y":423,"width":229,"height":11}},{"id":"4fd8cb94-dc1a-48c9-b2ad-efec562ab827","block_type":"box","text":"Certain Funds may invest in collateralized debt obligations (“CDOs”), which","page_number":41,"box":{"x":337,"y":423,"width":534,"height":11}},{"id":"6f6467e2-945e-4d97-bc60-f52e18d11673","block_type":"box","text":"include collateralized bond obligations (“CBOs”), collateralized loan obligations (“CLOs”) and other similarly","page_number":41,"box":{"x":70,"y":438,"width":764,"height":11}},{"id":"44d5dbff-fb68-49c8-8b51-ae9da5c3f7b6","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":41,"box":{"x":69,"y":453,"width":787,"height":11}},{"id":"d62fcb64-26c0-4d63-81f9-d9ed2a5b0cfd","block_type":"box","text":"special purpose entity (“SPE”) and is typically backed by a diversified pool of fixed-income securities (which may","page_number":41,"box":{"x":69,"y":468,"width":797,"height":11}},{"id":"6d3368b0-a808-4e83-8d92-6292ac79daa5","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":41,"box":{"x":70,"y":483,"width":798,"height":11}},{"id":"d0f7a85d-ae4e-4d1b-aae8-849dc80ef980","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":41,"box":{"x":69,"y":498,"width":827,"height":11}},{"id":"7b102b6b-5a9f-4565-a898-545d656da015","block_type":"box","text":"senior secured loans, senior unsecured loans, and subordinate corporate loans, including loans that may be rated","page_number":41,"box":{"x":69,"y":514,"width":814,"height":11}},{"id":"ddce3a1a-aae8-4fe9-b89a-76dbee701b7a","block_type":"box","text":"below investment grade or equivalent unrated loans, held by such issuer. Investments in a CLO organized outside of","page_number":41,"box":{"x":69,"y":528,"width":828,"height":12}},{"id":"96717ab4-4e3a-4fc3-946c-371b674ef082","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":41,"box":{"x":68,"y":543,"width":782,"height":12}},{"id":"60606ef5-32c2-4b75-a429-5db18207d84f","block_type":"box","text":"substantial portion of which are U.S. loans. Although certain CDOs may benefit from credit enhancement in the form","page_number":41,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"4a8d45ab-e118-43cc-9a53-6f8eab6a884a","block_type":"box","text":"of a senior-subordinate structure, over-collateralization or bond insurance, such enhancement may not always be","page_number":41,"box":{"x":69,"y":574,"width":803,"height":11}},{"id":"6c66805e-72db-43be-8fcb-427f38ae397d","block_type":"box","text":"present, and may fail to protect a Fund against the risk of loss on default of the collateral. Certain CDO issuers may","page_number":41,"box":{"x":70,"y":589,"width":827,"height":11}},{"id":"237e3d57-1059-4d00-82b1-016aea41cc14","block_type":"box","text":"use derivatives contracts to create “synthetic” exposure to assets rather than holding such assets directly, which","page_number":41,"box":{"x":69,"y":604,"width":807,"height":11}},{"id":"cf9e2022-0ca6-4347-acb3-271da11f3c21","block_type":"box","text":"entails the risks of derivative instruments described elsewhere in this SAI. CDOs may charge management fees and","page_number":41,"box":{"x":69,"y":619,"width":826,"height":11}},{"id":"237b6947-9b59-4037-9a4f-2b3ccae68840","block_type":"box","text":"administrative expenses, which are in addition to those of a Fund.","page_number":41,"box":{"x":69,"y":634,"width":469,"height":11}},{"id":"c92e4c5d-6bc7-4c52-a64d-420c5b038c11","block_type":"box","text":"For both CBOs and CLOs, the cash flows from the SPE are split into two or more portions, called tranches,","page_number":41,"box":{"x":102,"y":657,"width":758,"height":11}},{"id":"47f050e4-8487-46e0-bcde-7ce19b15925e","block_type":"box","text":"varying in risk and yield. The riskiest portion is the “equity” tranche, which bears the first loss from defaults from the","page_number":41,"box":{"x":68,"y":672,"width":836,"height":11}},{"id":"ad26eb0e-9d2c-4c06-8f48-cbc9262095d5","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":41,"box":{"x":69,"y":687,"width":838,"height":11}},{"id":"4267970b-18b7-4afa-aef3-55c613a13378","block_type":"box","text":"is not complete). Since it is partially protected from defaults, a senior tranche from a CBO or CLO typically has higher","page_number":41,"box":{"x":70,"y":702,"width":835,"height":12}},{"id":"3ee86d9c-5cd6-4e6a-a520-17ac518690ba","block_type":"box","text":"ratings and lower yields than its underlying securities, and may be rated investment grade. Despite the protection","page_number":41,"box":{"x":69,"y":718,"width":808,"height":11}},{"id":"0d494ed0-16fb-4542-b9ef-24f718ec4dbb","block_type":"box","text":"from the equity tranche, CBO or CLO tranches can experience substantial losses due to actual defaults, downgrades","page_number":41,"box":{"x":68,"y":732,"width":830,"height":12}},{"id":"9ab111a8-26d1-47aa-b7a1-cf7941ba9de5","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":41,"box":{"x":69,"y":748,"width":806,"height":11}},{"id":"9d8edf69-637c-4ec7-8d9e-a4ae5779afef","block_type":"box","text":"tests, increased sensitivity to defaults due to collateral default and disappearance of protecting tranches, market","page_number":41,"box":{"x":68,"y":763,"width":809,"height":11}},{"id":"b12181a5-8a14-4373-822f-a7cc2182bcb2","block_type":"box","text":"anticipation of defaults as well as investor aversion to CBO or CLO securities as a class. Interest on certain tranches","page_number":41,"box":{"x":69,"y":778,"width":835,"height":11}},{"id":"81fc9e74-01f3-4b09-b66a-c7a285deba05","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":41,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"5a9aa09a-f077-49bc-aece-4f3bbffd2695","block_type":"box","text":"cash), which involves continued exposure to default risk with respect to such payments.","page_number":41,"box":{"x":69,"y":808,"width":625,"height":11}},{"id":"ae091502-8640-425b-afd9-d769e5fcd0f5","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":41,"box":{"x":101,"y":831,"width":789,"height":11}},{"id":"f45343ed-6c32-4abf-bd98-de00f46ac25c","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":41,"box":{"x":69,"y":846,"width":830,"height":11}},{"id":"5c4df68a-f64e-492e-af30-80969e98cb31","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":41,"box":{"x":69,"y":861,"width":830,"height":11}},{"id":"cff83faa-10a3-476d-b2fd-91a0038a5dcb","block_type":"box","text":"for Rule 144A transactions. In addition to the normal risks associated with fixed-income securities and asset-backed","page_number":41,"box":{"x":68,"y":876,"width":831,"height":9}},{"id":"a9cbcce7-2f86-4aba-a8c7-e7e82b41ba2b","block_type":"box","text":"securities generally discussed elsewhere in this SAI, CDOs carry additional risks including, but not limited to: (i) the","page_number":41,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"c50a1219-b0ca-439d-8ac2-c9e0c08bf5ce","block_type":"box","text":"possibility that distributions from collateral securities will not be adequate to make interest or other payments; (ii) the","page_number":41,"box":{"x":70,"y":906,"width":838,"height":12}},{"id":"0af3623c-7123-4751-b200-7ae311b333c2","block_type":"box","text":"II-3","page_number":41,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"782a3a36-2572-477b-b8da-000ac67d5b78","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":41,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"aefffa56-5d9c-43d7-9ccb-1d8baf6afe5a","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":42,"box":{"x":69,"y":45,"width":832,"height":11}},{"id":"b2421caa-b364-4915-9643-2cf3b5bf2a11","block_type":"box","text":"rating organization (“NRSRO”); (iii) a Fund may invest in tranches of CDOs that are subordinate to other tranches;","page_number":42,"box":{"x":69,"y":60,"width":807,"height":11}},{"id":"4d47963b-1fe8-43f2-a43e-2b30aa69a697","block_type":"box","text":"(iv) the structure and complexity of the transaction and the legal documents could lead to disputes among investors","page_number":42,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"e2ad6e57-2a45-4267-af2a-90112d274432","block_type":"box","text":"regarding the characterization of proceeds; (v) the investment return achieved by the Fund could be significantly","page_number":42,"box":{"x":69,"y":90,"width":795,"height":11}},{"id":"ae203847-6b48-4654-bfb2-1905506968f2","block_type":"box","text":"different than those predicted by financial models; (vi) the lack of a readily available secondary market for CDOs;","page_number":42,"box":{"x":69,"y":105,"width":804,"height":11}},{"id":"3a33a7b6-afb1-4350-8eb8-a07a51e35832","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":42,"box":{"x":69,"y":120,"width":805,"height":12}},{"id":"c48492df-a64b-4703-86fc-51b5d0bf109a","block_type":"box","text":"CDO’s manager may perform poorly.","page_number":42,"box":{"x":69,"y":135,"width":257,"height":12}},{"id":"4fe037df-4adb-4b36-b577-d3db8bd505ba","block_type":"box","text":"Commercial Paper.","page_number":42,"box":{"x":102,"y":158,"width":136,"height":11}},{"id":"b31155c9-cc87-4194-80b1-d23ca7ee4314","block_type":"box","text":"Certain Funds may purchase commercial paper. Commercial paper purchasable by each","page_number":42,"box":{"x":244,"y":158,"width":626,"height":11}},{"id":"b4a0d8b2-0058-41fa-91d5-43e0d1473be4","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":42,"box":{"x":70,"y":173,"width":781,"height":11}},{"id":"15292f29-8d04-47a6-9d4b-6fcfb5e4ab56","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":42,"box":{"x":70,"y":188,"width":806,"height":12}},{"id":"f9f27e0d-3d0d-4c26-b9eb-38c7bb7abfa7","block_type":"box","text":"restricted as to disposition under the Federal securities laws, and is frequently sold (and resold) to institutional","page_number":42,"box":{"x":69,"y":203,"width":792,"height":12}},{"id":"8c5b4655-eeff-41fb-9f5f-43c91586e90b","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":42,"box":{"x":70,"y":218,"width":820,"height":12}},{"id":"d3dc60b5-23c3-4516-9817-9f5a41216e43","block_type":"box","text":"4(a)(2) paper, thereby providing liquidity. Certain transactions in Section 4(a)(2) paper may qualify for the registration","page_number":42,"box":{"x":69,"y":234,"width":831,"height":11}},{"id":"da4857ff-f71e-4476-b4e5-dea3df966b09","block_type":"box","text":"exemption provided in Rule 144A under the Securities Act. Most Funds can purchase commercial paper rated (at the","page_number":42,"box":{"x":69,"y":249,"width":831,"height":11}},{"id":"e593845a-afb3-4aa1-8878-2e2567e55157","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":42,"box":{"x":68,"y":264,"width":805,"height":11}},{"id":"b330ea45-933b-4e8b-ad8f-10a88bd6fc57","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":42,"box":{"x":69,"y":279,"width":707,"height":11}},{"id":"654d445c-9003-4b4b-ad1b-456146a02cd5","block_type":"box","text":"Commercial paper is generally considered to be short-term unsecured debt of corporations. Like all fixed income","page_number":42,"box":{"x":102,"y":302,"width":801,"height":11}},{"id":"ceadef92-c6a8-4adc-8813-9e8f55278aba","block_type":"box","text":"securities, commercial paper prices are susceptible to fluctuations in interest rates. If interest rates rise, commercial","page_number":42,"box":{"x":69,"y":317,"width":836,"height":11}},{"id":"96c2527c-0b48-471f-b089-c481fca9abe5","block_type":"box","text":"paper prices will decline and vice versa. However, the short-term nature of a commercial paper investment generally","page_number":42,"box":{"x":70,"y":332,"width":826,"height":11}},{"id":"8970fc9c-6fe7-4de7-9e44-bf863868514a","block_type":"box","text":"makes it less susceptible to volatility than many other fixed income securities because interest rate risk typically","page_number":42,"box":{"x":69,"y":347,"width":803,"height":11}},{"id":"cd8ec7a3-2816-4673-ae48-8897de4576b2","block_type":"box","text":"increases as maturity lengths increase. Commercial paper tends to yield smaller returns than longer-term corporate","page_number":42,"box":{"x":70,"y":362,"width":822,"height":11}},{"id":"6223f694-1c7d-4275-8ff9-97c8374f2aac","block_type":"box","text":"debt because securities with shorter maturities typically have lower effective yields than those with longer maturities.","page_number":42,"box":{"x":69,"y":377,"width":835,"height":12}},{"id":"fa8a26bf-e394-4afa-9275-93139d58f357","block_type":"box","text":"Commodity-Linked Derivative Instruments and Hybrid Instruments.","page_number":42,"box":{"x":102,"y":400,"width":483,"height":11}},{"id":"b2602569-9c38-4032-bc03-def56c3ddb34","block_type":"box","text":"Certain Funds seek to gain exposure to the","page_number":42,"box":{"x":591,"y":400,"width":308,"height":11}},{"id":"7b45d67f-dc8f-4554-98bc-b6f458a17a39","block_type":"box","text":"commodities markets primarily through investments in hybrid instruments. Hybrid instruments are either equity or","page_number":42,"box":{"x":69,"y":415,"width":809,"height":11}},{"id":"0f5a21e2-148a-484f-996a-15dd1da0864a","block_type":"box","text":"debt derivative securities with one or more commodity-dependent components that have payment features similar to","page_number":42,"box":{"x":69,"y":430,"width":828,"height":11}},{"id":"edeaf0e4-f854-43f4-9331-283830fdf064","block_type":"box","text":"a commodity futures contract, a commodity option contract, or a combination of both. Therefore, these instruments","page_number":42,"box":{"x":69,"y":445,"width":822,"height":11}},{"id":"30853601-b01f-4ebf-a136-d88b21026ad2","block_type":"box","text":"are “commodity-linked.” They are considered “hybrid” instruments because they have both commodity-like and","page_number":42,"box":{"x":69,"y":461,"width":787,"height":11}},{"id":"2ff75f78-4493-4114-b5f8-80d2edb19d8a","block_type":"box","text":"security-like characteristics. Hybrid instruments are derivative instruments because at least part of their value is","page_number":42,"box":{"x":69,"y":475,"width":801,"height":12}},{"id":"c0cbd831-e1c6-4256-ae66-50dffb14ee47","block_type":"box","text":"derived from the value of an underlying commodity, futures contract, index or other readily measurable economic","page_number":42,"box":{"x":69,"y":491,"width":800,"height":11}},{"id":"88936d63-84b6-4c5a-9bba-eb49097f1cb9","block_type":"box","text":"variable.","page_number":42,"box":{"x":68,"y":506,"width":59,"height":9}},{"id":"6aeb9485-5b7a-420e-9a48-0dc99b88b2bd","block_type":"box","text":"The prices of commodity-linked derivative instruments may move in different directions than investments in","page_number":42,"box":{"x":101,"y":528,"width":763,"height":12}},{"id":"98708393-38f3-4d29-9862-6b3dec2465a6","block_type":"box","text":"traditional equity and debt securities when the value of those traditional securities is declining due to adverse","page_number":42,"box":{"x":68,"y":543,"width":783,"height":12}},{"id":"a94df20b-9eb5-4e6a-bc18-b08f4d113e8d","block_type":"box","text":"economic conditions. As an example, during periods of rising inflation, debt securities have historically tended to","page_number":42,"box":{"x":69,"y":559,"width":802,"height":11}},{"id":"5b05e25e-fe25-4704-b732-129a1d236839","block_type":"box","text":"decline in value due to the general increase in prevailing interest rates. Conversely, during those same periods of","page_number":42,"box":{"x":69,"y":574,"width":808,"height":11}},{"id":"6c614ade-013f-4546-97e1-a58474f7a848","block_type":"box","text":"rising inflation, the prices of certain commodities, such as oil and metals, have historically tended to increase. Of","page_number":42,"box":{"x":69,"y":589,"width":811,"height":11}},{"id":"b840cbe5-887f-49f7-a9d2-0c845c81d775","block_type":"box","text":"course, there cannot be any guarantee that these investments will perform in that manner in the future, and at","page_number":42,"box":{"x":69,"y":604,"width":791,"height":11}},{"id":"9c057758-c7c6-4d78-a82a-8cfeb3e7051d","block_type":"box","text":"certain times the price movements of commodity-linked instruments have been parallel to those of debt and equity","page_number":42,"box":{"x":69,"y":619,"width":819,"height":11}},{"id":"e13bfb99-6325-490f-b7bb-ce81b029287e","block_type":"box","text":"securities. Commodities have historically tended to increase and decrease in value during different parts of the","page_number":42,"box":{"x":69,"y":634,"width":795,"height":12}},{"id":"b12cf844-b00c-408a-a5bb-f0061cba83dc","block_type":"box","text":"business cycle than financial assets. Nevertheless, at various times, commodities prices may move in tandem with","page_number":42,"box":{"x":69,"y":649,"width":822,"height":12}},{"id":"ae26f174-8119-43f8-945b-de74c6d86b78","block_type":"box","text":"the prices of financial assets and thus may not provide overall portfolio diversification benefits. Under favorable","page_number":42,"box":{"x":68,"y":664,"width":797,"height":12}},{"id":"a3a2cf5d-d9ac-439e-ab2c-1966b08b9b34","block_type":"box","text":"economic conditions, the Fund’s investments may be expected to under-perform an investment in traditional","page_number":42,"box":{"x":69,"y":680,"width":772,"height":11}},{"id":"bf627bf9-86b7-4d03-9943-46f5d8b0d611","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":42,"box":{"x":69,"y":695,"width":773,"height":11}},{"id":"3046da2f-8ff5-4ca7-af65-a4164da6f663","block_type":"box","text":"correlation with stocks and bonds.","page_number":42,"box":{"x":69,"y":710,"width":244,"height":9}},{"id":"751b9dce-962a-412b-9578-d660c635a896","block_type":"box","text":"Qualifying Hybrid Instruments.","page_number":42,"box":{"x":102,"y":732,"width":212,"height":12}},{"id":"39bcb61e-fe6b-4f3e-adf4-8cf27be83f59","block_type":"box","text":"Certain Funds may invest in hybrid instruments that qualify for exclusion from","page_number":42,"box":{"x":320,"y":732,"width":552,"height":12}},{"id":"5a6bbb33-14de-4a37-95e3-9126c8a236ef","block_type":"box","text":"regulation under the Commodity Exchange Act and the regulations adopted thereunder. A hybrid instrument that","page_number":42,"box":{"x":69,"y":748,"width":795,"height":11}},{"id":"521035e7-f5aa-4172-9ee7-a68e5be4fc0b","block_type":"box","text":"qualifies for this exclusion from regulation must be “predominantly a security.” A hybrid instrument is considered to","page_number":42,"box":{"x":69,"y":763,"width":822,"height":11}},{"id":"e78869ee-47d4-4678-938e-ed5fc6c82f90","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":42,"box":{"x":69,"y":778,"width":834,"height":11}},{"id":"6560c567-9547-4bd0-8cc8-2e7760a99b66","block_type":"box","text":"the hybrid instrument, substantially contemporaneously with delivery of the hybrid instrument; (b) the purchaser or","page_number":42,"box":{"x":68,"y":793,"width":816,"height":11}},{"id":"3c1e1f49-74dd-4c04-bbeb-c4525fbb50b8","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":42,"box":{"x":69,"y":808,"width":817,"height":11}},{"id":"0fa4108f-25e0-44e8-8885-d80e8f04fa60","block_type":"box","text":"paid under subparagraph (a), whether as margin, settlement payment, or otherwise, during the life of the hybrid","page_number":42,"box":{"x":70,"y":823,"width":793,"height":12}},{"id":"e8fb2e2a-94a2-426f-9683-14ee072a0073","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":42,"box":{"x":70,"y":838,"width":798,"height":11}},{"id":"c254fc77-6698-40f6-ac3f-ff4e8b900e36","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":42,"box":{"x":69,"y":853,"width":797,"height":12}},{"id":"58605bfb-ee73-4bcd-a155-04effba3be37","block_type":"box","text":"commodity for future delivery (or option on such a contract) subject to applicable provisions of the Commodity","page_number":42,"box":{"x":69,"y":869,"width":783,"height":11}},{"id":"24b09857-3086-4e4b-9597-ac46fb3d91cd","block_type":"box","text":"Exchange Act. Hybrid instruments may be principal protected, partially protected, or offer no principal protection. A","page_number":42,"box":{"x":70,"y":884,"width":816,"height":11}},{"id":"aa8f78c0-9387-4e53-8a72-7d0d42044df2","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":42,"box":{"x":70,"y":899,"width":791,"height":11}},{"id":"4315edf2-771c-4917-917d-3835c49b7d90","block_type":"box","text":"II-4","page_number":42,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"3756083f-69a9-450c-a11b-c92fc066d067","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":42,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d7354a05-7622-4acf-b651-a15becd6118a","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":43,"box":{"x":69,"y":45,"width":829,"height":11}},{"id":"5ab16acf-9c29-45b7-8051-8d0b75d3ca90","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":43,"box":{"x":68,"y":60,"width":837,"height":11}},{"id":"1ad3854d-d744-40e0-a789-5453c8ef3fdd","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":43,"box":{"x":70,"y":75,"width":772,"height":11}},{"id":"1901f270-2b68-4fbd-8dbb-ac609f5659cd","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":43,"box":{"x":69,"y":90,"width":839,"height":11}},{"id":"fb374b79-56ea-47a4-a6c5-b413bd23028e","block_type":"box","text":"level of the underlying commodity. The Manager’s decision whether to use principal protection depends in part on the","page_number":43,"box":{"x":70,"y":105,"width":835,"height":11}},{"id":"c6cfd2af-2fb9-4417-a199-ded568aef048","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":43,"box":{"x":69,"y":120,"width":833,"height":12}},{"id":"f7ab3150-488e-4f96-abcb-4b89b7ea960a","block_type":"box","text":"to buy back the security, and, therefore, depends on the creditworthiness of the issuer. With full principal protection,","page_number":43,"box":{"x":68,"y":135,"width":831,"height":11}},{"id":"999f5585-c4aa-410d-9e68-ade9ca2e4e62","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":43,"box":{"x":68,"y":150,"width":795,"height":12}},{"id":"8c9bf356-f35c-47a2-9094-a5db54d27cfd","block_type":"box","text":"potentially, an amount greater than the stated par value if the underlying commodity, index, futures contract or","page_number":43,"box":{"x":70,"y":166,"width":784,"height":11}},{"id":"4167cec3-f040-4f58-9690-62fee6e0311a","block_type":"box","text":"economic variable to which the hybrid instrument is linked has increased in value. Partially protected hybrid","page_number":43,"box":{"x":69,"y":181,"width":765,"height":11}},{"id":"383945ea-2af5-4c94-94dd-59b53e041177","block_type":"box","text":"instruments may suffer some loss of principal if the underlying commodity, index, futures contract or economic","page_number":43,"box":{"x":70,"y":196,"width":788,"height":11}},{"id":"98b5f0b2-760b-40f8-9832-a673bdd09506","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":43,"box":{"x":68,"y":211,"width":828,"height":11}},{"id":"7a1c5a3c-c5dd-48cf-b384-e367d6002f8a","block_type":"box","text":"partially protected hybrid instruments have a specified limit as to the amount of principal that they may lose.","page_number":43,"box":{"x":70,"y":226,"width":773,"height":11}},{"id":"201c9a08-bcfc-48b8-910b-1268d48d9df5","block_type":"box","text":"Hybrid Instruments Without Principal Protection.","page_number":43,"box":{"x":102,"y":249,"width":339,"height":11}},{"id":"8c88a296-0f44-496d-a994-fcc089d1645f","block_type":"box","text":"Certain Funds may invest in hybrid instruments that offer no","page_number":43,"box":{"x":448,"y":249,"width":429,"height":11}},{"id":"954fe27d-417d-446b-8fac-7fc2af50b514","block_type":"box","text":"principal protection. At maturity, there is a risk that the underlying commodity price, futures contract, index or other","page_number":43,"box":{"x":70,"y":264,"width":818,"height":11}},{"id":"9d21d180-2de5-4b36-ada3-1a52093c6b78","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":43,"box":{"x":69,"y":279,"width":780,"height":11}},{"id":"b4e08e3d-37ba-4f55-9ecd-30dd90278a28","block_type":"box","text":"instrument might not be returned. The Manager, at its discretion, may invest in a partially protected principal","page_number":43,"box":{"x":70,"y":294,"width":773,"height":11}},{"id":"13fcd6ee-032a-4e02-b869-072bd2f51d01","block_type":"box","text":"structured note or a note without principal protection. In deciding to purchase a note without principal protection, the","page_number":43,"box":{"x":69,"y":309,"width":832,"height":11}},{"id":"7e42cf29-43f5-4574-a3bd-3b0f3233381f","block_type":"box","text":"Manager may consider, among other things, the expected performance of the underlying commodity futures contract,","page_number":43,"box":{"x":70,"y":324,"width":831,"height":12}},{"id":"931602bf-b656-4973-ad4f-5a53de490f8b","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":43,"box":{"x":70,"y":339,"width":831,"height":12}},{"id":"9dbe3a1e-657a-4f1f-af46-d4ebd562bbd9","block_type":"box","text":"the Manager believes are relevant.","page_number":43,"box":{"x":68,"y":355,"width":247,"height":11}},{"id":"f4c6834b-21a8-4a81-8d6f-afc8f82bf40c","block_type":"box","text":"Limitations on Leverage.","page_number":43,"box":{"x":102,"y":377,"width":173,"height":12}},{"id":"9dde5950-8bbc-4b0a-889b-60f150d0f149","block_type":"box","text":"Some of the hybrid instruments in which a Fund may invest may involve leverage. To","page_number":43,"box":{"x":281,"y":377,"width":598,"height":12}},{"id":"d83dee1f-dd4a-442e-9191-784cdbb2d16c","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":43,"box":{"x":69,"y":392,"width":840,"height":12}},{"id":"07cbf02b-3951-4584-ac0b-93e1976f4b8e","block_type":"box","text":"one hybrid instrument that it buys and the leverage of the Fund’s overall portfolio. A Fund will not invest in a hybrid","page_number":43,"box":{"x":69,"y":407,"width":816,"height":12}},{"id":"14d4cc40-936d-4e3b-af27-05ef9fdf06ad","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":43,"box":{"x":70,"y":423,"width":812,"height":11}},{"id":"eef6281d-301d-4e17-8030-7421fa6826f9","block_type":"box","text":"the underlying commodity, futures contract, index or other economic variable or (ii) the Fund’s “portfolio leverage","page_number":43,"box":{"x":68,"y":438,"width":803,"height":11}},{"id":"a60b81f7-2ea1-4bc4-82eb-25bd382c81b6","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":43,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"8aaae9e6-f3f4-4f97-8856-25c3a08c1f70","block_type":"box","text":"hybrid instrument, assuming a one percent price increase in the underlying commodity, futures contract, index or","page_number":43,"box":{"x":69,"y":468,"width":803,"height":11}},{"id":"6094bcfc-7502-4766-a8e9-0ed287798a8a","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":43,"box":{"x":69,"y":483,"width":783,"height":11}},{"id":"d8fbcd6a-d8d3-4e36-a6a1-b6c2cb13f664","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":43,"box":{"x":69,"y":498,"width":758,"height":11}},{"id":"b4e3e774-5399-46d6-bacb-fac42a777f82","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":43,"box":{"x":69,"y":513,"width":818,"height":12}},{"id":"2fc8ba2a-0d70-45dc-acbf-72ee9df27367","block_type":"box","text":"variable lost 1% of its value. “Portfolio leverage ratio” is defined as the average (mean) leverage ratio of all","page_number":43,"box":{"x":68,"y":528,"width":763,"height":12}},{"id":"83995c64-d3db-4b26-a879-ea3c65c6b1bb","block_type":"box","text":"instruments in a Fund’s portfolio, weighted by the market values of such instruments or, in the case of futures","page_number":43,"box":{"x":70,"y":543,"width":787,"height":12}},{"id":"cdd8b0f7-5854-4f8f-a18e-138872290573","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":43,"box":{"x":69,"y":559,"width":757,"height":11}},{"id":"4e93b9be-855a-4d59-942c-5bfb0699159c","block_type":"box","text":"investments or use less leverage than may otherwise be allowable.","page_number":43,"box":{"x":70,"y":574,"width":477,"height":11}},{"id":"e5738b33-9e62-4fc3-a457-53d3f0bbd4db","block_type":"box","text":"Counterpar ty Risk.","page_number":43,"box":{"x":102,"y":597,"width":130,"height":11}},{"id":"330d8b10-ad68-4c4f-a973-4d88612ae283","block_type":"box","text":"A significant risk of hybrid instruments is counterparty risk. Unlike exchange-traded futures","page_number":43,"box":{"x":238,"y":596,"width":646,"height":12}},{"id":"e7b94544-2577-41ef-afb5-b006f17ccb49","block_type":"box","text":"and options, which are standard contracts, hybrid instruments are customized securities, tailor-made by a specific","page_number":43,"box":{"x":69,"y":612,"width":813,"height":11}},{"id":"1271aba2-d2e5-49c8-b62e-2cb657b88a94","block_type":"box","text":"issuer. With a listed futures or options contract, an investor’s counterparty is the exchange clearinghouse. Exchange","page_number":43,"box":{"x":70,"y":627,"width":829,"height":11}},{"id":"bd6f886b-0b5c-4377-ade7-0d83c783322a","block_type":"box","text":"clearinghouses are capitalized by the exchange members and typically have high investment grade ratings (","page_number":43,"box":{"x":69,"y":642,"width":763,"height":11}},{"id":"95a528bc-f683-45db-849f-48105aa8f882","block_type":"box","text":"e.g.","page_number":43,"box":{"x":834,"y":643,"width":25,"height":10}},{"id":"504fe87c-8ebb-41dd-9d1f-e5c3ec2673b4","block_type":"box","text":",","page_number":43,"box":{"x":861,"y":649,"width":2,"height":3}},{"id":"c618a682-0332-4a13-bd96-365dfcbb27e8","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":43,"box":{"x":69,"y":657,"width":836,"height":11}},{"id":"4f324bb3-10ad-4b5a-96ed-4b2bf38b5703","block_type":"box","text":"obligations at maturity. However, with a hybrid instrument, a Fund will take on the counterparty credit risk of the","page_number":43,"box":{"x":69,"y":672,"width":795,"height":11}},{"id":"99ce9823-7b81-476f-97ef-2c7c4d29bb68","block_type":"box","text":"issuer. That is, at maturity of the hybrid instrument, there is a risk that the issuer may be unable to perform its","page_number":43,"box":{"x":70,"y":687,"width":791,"height":11}},{"id":"000da592-4a83-4786-b2ab-f5c771bdda85","block_type":"box","text":"obligations under the structured note.","page_number":43,"box":{"x":69,"y":703,"width":268,"height":11}},{"id":"9c0f576a-c982-4d0d-912d-73217c1836fe","block_type":"box","text":"Convertible Securities.","page_number":43,"box":{"x":102,"y":725,"width":165,"height":9}},{"id":"f365d953-9071-4690-8c42-26509a48714e","block_type":"box","text":"A convertible security is a bond, debenture, note, preferred stock or other security that","page_number":43,"box":{"x":273,"y":725,"width":619,"height":11}},{"id":"d0ec2bc3-1a59-45e9-9387-d8e8c44272bd","block_type":"box","text":"may be converted into or exchanged for a prescribed amount of common stock or other equity security of the same or","page_number":43,"box":{"x":69,"y":740,"width":839,"height":11}},{"id":"53c419e1-3198-4931-8d0e-45b553e36424","block_type":"box","text":"a different issuer within a particular period of time at a specified price or formula. A convertible security entitles the","page_number":43,"box":{"x":69,"y":755,"width":826,"height":11}},{"id":"fb4cb26b-f5bf-4d06-972d-3536bb7616a9","block_type":"box","text":"holder to receive interest paid or accrued on debt or the dividend paid on preferred stock until the convertible","page_number":43,"box":{"x":69,"y":770,"width":781,"height":11}},{"id":"84a010fe-81ba-40a0-84e9-332ca56caf0d","block_type":"box","text":"security matures or is redeemed, converted or exchanged. Before conversion, convertible securities have","page_number":43,"box":{"x":69,"y":785,"width":750,"height":12}},{"id":"6877bbdf-386b-4c4c-8a47-9c60cb298757","block_type":"box","text":"characteristics similar to nonconvertible income securities in that they ordinarily provide a stable stream of income","page_number":43,"box":{"x":69,"y":801,"width":819,"height":11}},{"id":"986fe0bc-e390-4dc6-8809-c32b7e7e759f","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":43,"box":{"x":68,"y":816,"width":784,"height":11}},{"id":"30f5cf0c-c212-4d51-9d4a-b539b663aebd","block_type":"box","text":"comparable nonconvertible securities. The value of a convertible security is influenced by changes in interest rates,","page_number":43,"box":{"x":69,"y":831,"width":823,"height":11}},{"id":"b9c1b1a1-255d-4f0e-a20d-0b80c6855bbb","block_type":"box","text":"with investment value declining as interest rates increase and increasing as interest rates decline. The credit","page_number":43,"box":{"x":68,"y":846,"width":780,"height":11}},{"id":"29ad7c69-be40-468a-bf3d-7b42bc9f703e","block_type":"box","text":"standing of the issuer and other factors also may have an effect on the convertible security’s investment value.","page_number":43,"box":{"x":69,"y":861,"width":795,"height":11}},{"id":"626df5f7-8b25-4db9-9109-2baa7d409716","block_type":"box","text":"Convertible securities rank senior to common stock in a corporation’s capital structure but are usually subordinated","page_number":43,"box":{"x":69,"y":876,"width":826,"height":11}},{"id":"d2b3f7ed-1903-491b-8ae6-810c4f512d2e","block_type":"box","text":"to comparable nonconvertible securities. Convertible securities may be subject to redemption at the option of the","page_number":43,"box":{"x":68,"y":891,"width":811,"height":11}},{"id":"f8da21d7-c3cc-4285-9d28-ae44d5b96f87","block_type":"box","text":"issuer at a price established in the convertible security’s governing instrument.","page_number":43,"box":{"x":70,"y":907,"width":563,"height":11}},{"id":"a20a6a9b-1dfa-45a3-b477-56f773357edc","block_type":"box","text":"II-5","page_number":43,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"8b366989-b3b4-4d4c-9e07-952d17a2cd0c","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":43,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a216f819-f825-476e-9560-5f1eb6bef93b","block_type":"box","text":"The characteristics of convertible securities make them potentially attractive investments for an investment","page_number":44,"box":{"x":101,"y":45,"width":767,"height":11}},{"id":"b4292779-6367-4311-b488-cce15cddc296","block_type":"box","text":"company seeking a high total return from capital appreciation and investment income. These characteristics include","page_number":44,"box":{"x":69,"y":60,"width":826,"height":11}},{"id":"a5015cbb-1583-46b4-90cc-ff939a77d140","block_type":"box","text":"the potential for capital appreciation as the value of the underlying common stock increases, the relatively high yield","page_number":44,"box":{"x":68,"y":75,"width":829,"height":11}},{"id":"df17b636-ee5f-4bc8-9952-48d4bc815f85","block_type":"box","text":"received from dividend or interest payments as compared to common stock dividends and decreased risks of decline","page_number":44,"box":{"x":69,"y":90,"width":834,"height":11}},{"id":"c349588b-5f92-43e6-87b6-3f26baf65bf5","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":44,"box":{"x":70,"y":105,"width":788,"height":11}},{"id":"3f640679-3249-43ca-b738-b1562e51adba","block_type":"box","text":"feature, however, the interest rate or dividend preference on a convertible security is generally less than would be the","page_number":44,"box":{"x":68,"y":120,"width":839,"height":12}},{"id":"383339bd-543d-40ab-886f-71958551f8c5","block_type":"box","text":"case if the securities were issued in nonconvertible form.","page_number":44,"box":{"x":69,"y":135,"width":409,"height":9}},{"id":"cfd8e824-9af6-49ed-bd4c-ad31f5ed76ce","block_type":"box","text":"In analyzing convertible securities, the Manager will consider both the yield on the convertible security relative to","page_number":44,"box":{"x":102,"y":158,"width":802,"height":11}},{"id":"45b89170-d6cb-434a-aa96-77b462bf3772","block_type":"box","text":"its credit quality and the potential capital appreciation that is offered by the underlying common stock, among other","page_number":44,"box":{"x":70,"y":173,"width":824,"height":11}},{"id":"573dfcd5-de37-4cd1-a8d4-eb5bc3477cb7","block_type":"box","text":"things.","page_number":44,"box":{"x":68,"y":188,"width":47,"height":12}},{"id":"38677603-cc9c-4d93-825a-41d14e9398ea","block_type":"box","text":"Convertible securities are issued and traded in a number of securities markets. Even in cases where a","page_number":44,"box":{"x":102,"y":211,"width":731,"height":9}},{"id":"60923ec8-efc2-4be1-9dab-ca92765a547e","block_type":"box","text":"substantial portion of the convertible securities held by a Fund are denominated in U.S. dollars, the underlying equity","page_number":44,"box":{"x":69,"y":226,"width":836,"height":11}},{"id":"c51f434b-110a-4101-bf14-5941e9267c05","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":44,"box":{"x":69,"y":241,"width":832,"height":11}},{"id":"d1a1230c-a8f2-4db3-972e-45ef34f9e7d4","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":44,"box":{"x":69,"y":257,"width":818,"height":11}},{"id":"9f4c243f-81d5-40d9-baa4-83222b3a4a91","block_type":"box","text":"price is quoted will affect the value of the convertible security. With respect to convertible securities denominated in","page_number":44,"box":{"x":70,"y":271,"width":828,"height":12}},{"id":"4f07ec46-eaea-4c93-949b-26b882d6bf71","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":44,"box":{"x":69,"y":286,"width":786,"height":12}},{"id":"710585b3-1200-431a-aaf8-39e1de857fae","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":44,"box":{"x":69,"y":302,"width":800,"height":11}},{"id":"9350345a-42d9-4754-ab26-ea29ffbae368","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":44,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"d7329d76-bf61-4cfc-95fa-6228a7229446","block_type":"box","text":"reduce the effect of exchange rate fluctuations.","page_number":44,"box":{"x":69,"y":332,"width":337,"height":11}},{"id":"30abdf49-62b7-4ea0-90bb-a95803a241c7","block_type":"box","text":"Apart from currency considerations, the value of convertible securities is influenced by both the yield on","page_number":44,"box":{"x":101,"y":355,"width":741,"height":11}},{"id":"2fea818c-078c-46f4-93b4-af34a46bb942","block_type":"box","text":"nonconvertible securities of comparable issuers and by the value of the underlying common stock. The value of a","page_number":44,"box":{"x":69,"y":370,"width":806,"height":11}},{"id":"37519301-6b5f-43bd-a54d-dc112847e1e3","block_type":"box","text":"convertible security viewed without regard to its conversion feature (","page_number":44,"box":{"x":69,"y":385,"width":485,"height":11}},{"id":"7bb26e43-17c4-46b7-88e4-596d843a1f31","block_type":"box","text":"i.e.","page_number":44,"box":{"x":557,"y":385,"width":20,"height":9}},{"id":"eced5aba-8845-48c7-9aeb-5dbd04960740","block_type":"box","text":", strictly on the basis of its yield) is","page_number":44,"box":{"x":579,"y":385,"width":248,"height":11}},{"id":"e06df9a0-3684-45a8-b814-db6b82895760","block_type":"box","text":"sometimes referred to as its “investment value.” To the extent interest rates change, the investment value of the","page_number":44,"box":{"x":69,"y":400,"width":808,"height":11}},{"id":"911a05cd-8deb-4685-8e32-44d461c623c5","block_type":"box","text":"convertible security typically will fluctuate. At the same time, however, the value of the convertible security will be","page_number":44,"box":{"x":69,"y":415,"width":807,"height":11}},{"id":"de485a36-847d-42dd-b527-008778d3cfc4","block_type":"box","text":"influenced by its “conversion value,” which is the market value of the underlying common stock that would be","page_number":44,"box":{"x":70,"y":430,"width":778,"height":11}},{"id":"0d9ae4c3-12a1-4147-82c8-80f002cbe8d1","block_type":"box","text":"obtained if the convertible security were converted. Conversion value fluctuates directly with the price of the","page_number":44,"box":{"x":69,"y":445,"width":769,"height":11}},{"id":"bfa165bb-0211-4f11-95da-88ce072c6da9","block_type":"box","text":"underlying common stock. If the conversion value of a convertible security is substantially below its investment value,","page_number":44,"box":{"x":69,"y":460,"width":837,"height":12}},{"id":"3ebcdb2f-998e-495b-9f57-3d2743eb7750","block_type":"box","text":"the price of the convertible security is governed principally by its investment value. To the extent the conversion value","page_number":44,"box":{"x":68,"y":475,"width":837,"height":12}},{"id":"69cd4af7-39a0-430a-b0ec-8312c66a1e4f","block_type":"box","text":"of a convertible security increases to a point that approximates or exceeds its investment value, the price of the","page_number":44,"box":{"x":69,"y":491,"width":800,"height":11}},{"id":"9b8f6e56-1d34-41f8-944a-3dd09d2a20d4","block_type":"box","text":"convertible security will be influenced principally by its conversion value. A convertible security will sell at a premium","page_number":44,"box":{"x":69,"y":506,"width":828,"height":11}},{"id":"2ca0b454-4523-4fec-8702-85c815db2be5","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":44,"box":{"x":69,"y":521,"width":808,"height":11}},{"id":"ab8703d1-d010-4d56-aef8-8450a8f557fa","block_type":"box","text":"while holding a fixed-income security. The yield and conversion premium of convertible securities issued in Japan and","page_number":44,"box":{"x":68,"y":536,"width":835,"height":11}},{"id":"8b4b65cc-6da9-4bc8-a928-59ad472ea16c","block_type":"box","text":"the Euromarket are frequently determined at levels that cause the conversion value to affect their market value more","page_number":44,"box":{"x":68,"y":551,"width":836,"height":11}},{"id":"eb2ff549-c826-450f-ba6b-d7ad5f562195","block_type":"box","text":"than the securities’ investment value.","page_number":44,"box":{"x":68,"y":566,"width":268,"height":9}},{"id":"c57170b7-5656-4659-9722-2c9d2816dfc1","block_type":"box","text":"Holders of convertible securities generally have a claim on the assets of the issuer prior to the common","page_number":44,"box":{"x":102,"y":589,"width":740,"height":11}},{"id":"4653c035-215b-48ce-b1b5-52b240acd171","block_type":"box","text":"stockholders but may be subordinated to other debt securities of the same issuer. A convertible security may be","page_number":44,"box":{"x":69,"y":604,"width":801,"height":11}},{"id":"0ad86a6b-db66-4912-ac7a-006ca0972158","block_type":"box","text":"subject to redemption at the option of the issuer at a price established in a charter provision, indenture or other","page_number":44,"box":{"x":69,"y":619,"width":800,"height":11}},{"id":"30524be9-7357-40ed-b196-ec7280f66035","block_type":"box","text":"governing instrument pursuant to which the convertible security was issued. If a convertible security held by a Fund is","page_number":44,"box":{"x":68,"y":634,"width":840,"height":12}},{"id":"5ba64c3e-f64b-4d30-ad83-d2c8e3aa57bb","block_type":"box","text":"called for redemption, the Fund will be required to redeem the security, convert it into the underlying common stock","page_number":44,"box":{"x":69,"y":649,"width":823,"height":12}},{"id":"d6634af9-a761-451e-a23d-3739218bca44","block_type":"box","text":"or sell it to a third party. Certain convertible debt securities may provide a put option to the holder, which entitles the","page_number":44,"box":{"x":69,"y":665,"width":835,"height":11}},{"id":"e5a11fb4-042e-4bf3-ab53-339b71dde323","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":44,"box":{"x":69,"y":680,"width":832,"height":11}},{"id":"986cba35-23ad-473c-99c4-e34bb81a71ff","block_type":"box","text":"security under certain circumstances.","page_number":44,"box":{"x":69,"y":695,"width":267,"height":11}},{"id":"6833886e-9549-4cbf-86cb-d178aaf9e895","block_type":"box","text":"A Fund may also invest in synthetic convertible securities. Synthetic convertible securities may include either","page_number":44,"box":{"x":101,"y":718,"width":777,"height":11}},{"id":"408999af-38e8-4c56-9298-6d74ce1e239b","block_type":"box","text":"Cash-Settled Convertibles or Manufactured Convertibles. “Cash-Settled Convertibles” are instruments that are","page_number":44,"box":{"x":69,"y":732,"width":789,"height":10}},{"id":"cf1a2785-8448-4957-b215-63d11c40ee2a","block_type":"box","text":"created by the issuer and have the economic characteristics of traditional convertible securities but may not actually","page_number":44,"box":{"x":69,"y":748,"width":831,"height":11}},{"id":"d514d44f-8391-4343-bcaf-3a096215b223","block_type":"box","text":"permit conversion into the underlying equity securities in all circumstances. As an example, a private company may","page_number":44,"box":{"x":70,"y":763,"width":819,"height":11}},{"id":"a3ad234a-e77a-4e89-97c8-b2c57c1fd1c5","block_type":"box","text":"issue a Cash-Settled Convertible that is convertible into common stock only if the company successfully completes a","page_number":44,"box":{"x":70,"y":778,"width":833,"height":11}},{"id":"998fd7ba-41e8-4457-bca4-3914605157c5","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":44,"box":{"x":70,"y":793,"width":769,"height":11}},{"id":"22094889-091c-40f3-8cbf-13b3807f22d0","block_type":"box","text":"appreciation. “Manufactured Convertibles” are created by the Manager or another party by combining separate","page_number":44,"box":{"x":69,"y":808,"width":791,"height":11}},{"id":"4fa9449b-0095-4694-855d-afb8f3411128","block_type":"box","text":"securities that possess one of the two principal characteristics of a convertible security,","page_number":44,"box":{"x":69,"y":823,"width":627,"height":11}},{"id":"cba0c383-e6a6-4eb4-b690-f14dfd33ff81","block_type":"box","text":"i.e.","page_number":44,"box":{"x":703,"y":823,"width":20,"height":9}},{"id":"56192a01-e40d-4c8a-bb99-ade9457cb748","block_type":"box","text":", fixed-income (“fixed","page_number":44,"box":{"x":726,"y":823,"width":151,"height":11}},{"id":"c9bf8264-591e-4cad-8be7-93f2d29004d3","block_type":"box","text":"income component”) or a right to acquire equity securities (“convertibility component”). The fixed-income component","page_number":44,"box":{"x":70,"y":838,"width":830,"height":12}},{"id":"9ff7b2b4-dd27-4c2a-900b-2bf15df37e57","block_type":"box","text":"is achieved by investing in nonconvertible fixed-income securities, such as nonconvertible bonds, preferred stocks","page_number":44,"box":{"x":70,"y":853,"width":814,"height":12}},{"id":"66de7c27-2220-4936-ba28-05a5e47b4a54","block_type":"box","text":"and money market instruments. The convertibility component is achieved by investing in call options, warrants, or","page_number":44,"box":{"x":69,"y":869,"width":811,"height":11}},{"id":"b5565868-4f0b-4f0b-8c81-d355f82f825d","block_type":"box","text":"other securities with equity conversion features (“equity features”) granting the holder the right to purchase a","page_number":44,"box":{"x":69,"y":884,"width":779,"height":11}},{"id":"d0742a70-92d9-409e-9ce2-cc316381ba26","block_type":"box","text":"II-6","page_number":44,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"94b51583-74e8-4d19-bc6c-10d88ddd409e","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":44,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"eb520656-e608-4668-a0e9-c6ed3efbe79c","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":45,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"a4007f6a-20dc-4328-b368-7a9fcc661b0d","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":45,"box":{"x":69,"y":60,"width":744,"height":11}},{"id":"e92d0dec-51fd-4e83-8461-520bb9ea0437","block_type":"box","text":"A Manufactured Convertible differs from traditional convertible securities in several respects. Unlike a traditional","page_number":45,"box":{"x":101,"y":82,"width":804,"height":11}},{"id":"7ae85dac-ad30-4004-8553-fa089ef1eb46","block_type":"box","text":"convertible security, which is a single security that has a unitary market value, a Manufactured Convertible is","page_number":45,"box":{"x":69,"y":98,"width":777,"height":11}},{"id":"0212aaa2-d66f-44cc-b613-713fa3120877","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":45,"box":{"x":69,"y":113,"width":832,"height":11}},{"id":"d893ec9f-31c1-4f8c-ae4a-c01e41947b82","block_type":"box","text":"such a Manufactured Convertible is the sum of the values of its fixed-income component and its convertibility","page_number":45,"box":{"x":69,"y":128,"width":781,"height":11}},{"id":"d387739e-e0d7-4076-8ab0-a6d7a4e5a7bb","block_type":"box","text":"component.","page_number":45,"box":{"x":69,"y":144,"width":82,"height":10}},{"id":"f240c189-e032-4d15-aa2e-b9101d157519","block_type":"box","text":"More flexibility is possible in the creation of a Manufactured Convertible than in the purchase of a traditional","page_number":45,"box":{"x":102,"y":166,"width":773,"height":11}},{"id":"f1d1359f-0370-48c7-89b8-8fafb54ca3ef","block_type":"box","text":"convertible security. Because many corporations have not issued convertible securities, the Manager may combine a","page_number":45,"box":{"x":69,"y":181,"width":833,"height":11}},{"id":"6f22fe80-68f6-433c-9293-a2cf70f19586","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":45,"box":{"x":68,"y":196,"width":826,"height":11}},{"id":"f93aadd2-ad1f-4d47-b524-4bda65d0d71e","block_type":"box","text":"to create a synthetic convertible security otherwise unavailable in the market. The Manager may also combine a","page_number":45,"box":{"x":68,"y":211,"width":800,"height":11}},{"id":"2eeec2be-ba73-4059-b80c-f41436461bf7","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":45,"box":{"x":68,"y":226,"width":817,"height":11}},{"id":"d630d374-b4e7-4222-97f0-84e57121360d","block_type":"box","text":"Manager believes such a Manufactured Convertible would better promote a Fund’s objective than alternative","page_number":45,"box":{"x":70,"y":241,"width":772,"height":11}},{"id":"04ff0062-fece-4044-af40-1a11cfa57a9e","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":45,"box":{"x":70,"y":256,"width":833,"height":12}},{"id":"b01473de-807c-4514-a8b3-46e540cd116d","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":45,"box":{"x":70,"y":271,"width":790,"height":12}},{"id":"4d55dd2e-86fd-412e-8312-bb0ae1d49d57","block_type":"box","text":"Treasury instrument to create a Manufactured Convertible with a higher credit profile than a traditional convertible","page_number":45,"box":{"x":68,"y":286,"width":815,"height":12}},{"id":"6960a066-073b-4224-938b-79b41cb2f0a4","block_type":"box","text":"security issued by that issuer. A Manufactured Convertible also is a more flexible investment in that its two","page_number":45,"box":{"x":69,"y":302,"width":764,"height":11}},{"id":"28c7d834-9bad-452b-8b05-9c3262137f88","block_type":"box","text":"components may be purchased separately and, upon purchasing the separate securities, “combined” to create a","page_number":45,"box":{"x":69,"y":317,"width":806,"height":11}},{"id":"3d5bdf9f-b0b0-45c5-ba4b-27870907d289","block_type":"box","text":"Manufactured Convertible. For example, the Fund may purchase a warrant for eventual inclusion in a Manufactured","page_number":45,"box":{"x":70,"y":332,"width":818,"height":11}},{"id":"e4be5ae4-f321-49aa-b79c-d3fdd2917c4b","block_type":"box","text":"Convertible while postponing the purchase of a suitable bond to pair with the warrant pending development of more","page_number":45,"box":{"x":69,"y":347,"width":824,"height":11}},{"id":"19ab63c6-7e49-4ca3-a684-edffef0f857f","block_type":"box","text":"favorable market conditions.","page_number":45,"box":{"x":68,"y":362,"width":202,"height":9}},{"id":"a034a3e8-671e-44bf-be38-1058c906ae8a","block_type":"box","text":"The value of a Manufactured Convertible may respond to certain market fluctuations differently from a traditional","page_number":45,"box":{"x":101,"y":385,"width":805,"height":11}},{"id":"ab07bd90-bbdd-43fe-a952-ce584076bae5","block_type":"box","text":"convertible security with similar characteristics. For example, in the event a Fund created a Manufactured Convertible","page_number":45,"box":{"x":69,"y":400,"width":837,"height":11}},{"id":"6f3fd945-df7b-47e5-b49a-8574850d1678","block_type":"box","text":"by combining a short-term U.S. Treasury instrument and a call option on a stock, the Manufactured Convertible would","page_number":45,"box":{"x":69,"y":415,"width":839,"height":11}},{"id":"450860ae-cf85-40d9-9687-9cb07dd8bc53","block_type":"box","text":"be expected to outperform a traditional convertible of similar maturity that is convertible into that stock during","page_number":45,"box":{"x":69,"y":430,"width":787,"height":11}},{"id":"333262b6-8c78-49fe-8887-2b7e40354818","block_type":"box","text":"periods when Treasury instruments outperform corporate fixed-income securities and underperform during periods","page_number":45,"box":{"x":70,"y":445,"width":815,"height":12}},{"id":"ab0b8297-102e-4bbe-a9c3-0916353edfca","block_type":"box","text":"when corporate fixed-income securities outperform Treasury instruments.","page_number":45,"box":{"x":68,"y":460,"width":523,"height":12}},{"id":"19f78918-cf24-4eed-9808-97d85b94b26d","block_type":"box","text":"Corporate Loans.","page_number":45,"box":{"x":102,"y":483,"width":123,"height":11}},{"id":"ae990a22-95e5-4330-9758-d81eb8365b34","block_type":"box","text":"Certain Funds may invest in corporate loans. Corporate loans are generally non-investment","page_number":45,"box":{"x":231,"y":483,"width":647,"height":11}},{"id":"10813940-c694-4e10-9514-59df7387d35b","block_type":"box","text":"grade floating rate instruments. Usually, they are freely callable at the issuer’s option. Certain Funds may invest in","page_number":45,"box":{"x":68,"y":498,"width":817,"height":11}},{"id":"311ffd61-fc9a-45c0-a7a4-8a4eb5076db7","block_type":"box","text":"fixed and floating rate loans (“Loans”) arranged through private negotiations between a corporate borrower or a","page_number":45,"box":{"x":68,"y":513,"width":794,"height":12}},{"id":"f9d8b4ea-d524-4c69-b6d5-e545e2f02d84","block_type":"box","text":"foreign sovereign entity and one or more financial institutions or institutional investors (“Lenders”). A Fund may invest","page_number":45,"box":{"x":68,"y":528,"width":841,"height":12}},{"id":"15c7f492-e297-4972-99ed-2ee1b06b713a","block_type":"box","text":"in such Loans in the form of participations in Loans (“Participations”) and assignments of all or a portion of Loans","page_number":45,"box":{"x":70,"y":543,"width":818,"height":12}},{"id":"8d0cb9a0-9969-42f3-b3b2-aed9e210099d","block_type":"box","text":"from third parties (“Assignments”). A Fund considers these investments to be investments in debt securities for","page_number":45,"box":{"x":68,"y":559,"width":801,"height":11}},{"id":"78bb2eac-542f-4657-9ae3-a54f762dd481","block_type":"box","text":"purposes of its investment policies. Participations typically will result in the Fund having a contractual relationship","page_number":45,"box":{"x":70,"y":574,"width":811,"height":11}},{"id":"b1cfec49-0575-4336-8f3c-ee9252ae7a0f","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":45,"box":{"x":69,"y":589,"width":833,"height":11}},{"id":"3cfee559-939d-4701-bc6e-49b7b68373fb","block_type":"box","text":"any fees to which it is entitled only from the Lender selling the Participation and only upon receipt by the Lender of","page_number":45,"box":{"x":69,"y":604,"width":817,"height":11}},{"id":"ee1948b2-e9a1-496a-bf11-bee71f297b1f","block_type":"box","text":"the payments from the borrower. In connection with purchasing Participations, the Fund generally will have no right to","page_number":45,"box":{"x":68,"y":619,"width":836,"height":11}},{"id":"eba945f7-1350-42d4-9e68-237b2267c044","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":45,"box":{"x":69,"y":634,"width":833,"height":12}},{"id":"c3878145-db23-4c23-be68-3e36274c60c3","block_type":"box","text":"off against the borrower, and the Fund may not benefit directly from any collateral supporting the Loan in which it has","page_number":45,"box":{"x":69,"y":649,"width":837,"height":12}},{"id":"f6e775d3-baeb-4d64-9e63-41c6cb0d3583","block_type":"box","text":"purchased the Participation. As a result, the Fund will assume the credit risk of both the borrower and the Lender","page_number":45,"box":{"x":70,"y":664,"width":809,"height":11}},{"id":"e72a5a1f-52d5-415d-8200-5b93c9dd286f","block_type":"box","text":"that is selling the Participation. In the event of the insolvency of the Lender selling the Participation, the Fund may be","page_number":45,"box":{"x":68,"y":680,"width":838,"height":11}},{"id":"32c2faff-d44b-4803-8d51-b81ad10d9506","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":45,"box":{"x":68,"y":695,"width":772,"height":11}},{"id":"2dde88f9-1a01-42a5-8f09-94e8e7d662ea","block_type":"box","text":"borrower. The Fund will acquire Participations only if the Lender interpositioned between the Fund and the borrower is","page_number":45,"box":{"x":69,"y":710,"width":837,"height":11}},{"id":"6b30ba9d-64c7-475c-97e1-88f4c8de51f8","block_type":"box","text":"determined by the Fund’s manager to be creditworthy. When the Fund purchases Assignments from Lenders, the","page_number":45,"box":{"x":69,"y":725,"width":804,"height":11}},{"id":"2d8982fa-1de8-4f69-b772-c15202c71b1c","block_type":"box","text":"Fund will acquire direct rights against the borrower on the Loan, and will not have exposure to a counterparty’s credit","page_number":45,"box":{"x":70,"y":740,"width":834,"height":11}},{"id":"f9674515-6b0c-4ee7-b2c4-ecacc5594665","block_type":"box","text":"risk. The Funds may enter into Participations and Assignments on a forward commitment or “when-issued” basis,","page_number":45,"box":{"x":69,"y":755,"width":809,"height":11}},{"id":"5854412c-b2fe-4818-be21-5264cc0415fb","block_type":"box","text":"whereby a Fund would agree to purchase a Participation or Assignment at set terms in the future. For more","page_number":45,"box":{"x":68,"y":770,"width":764,"height":12}},{"id":"065129aa-a827-41ed-9ec0-8ebe53ba0a85","block_type":"box","text":"information on forward commitments and when-issued securities, see “When-Issued Securities, Delayed Delivery","page_number":45,"box":{"x":70,"y":785,"width":805,"height":12}},{"id":"b20ef670-fbea-4e18-8e4c-2207b9ac6538","block_type":"box","text":"Securities and Forward Commitments” below.","page_number":45,"box":{"x":69,"y":801,"width":324,"height":9}},{"id":"4aa423cf-f8b7-44e4-8274-bf272f65ff36","block_type":"box","text":"A Fund may have difficulty disposing of Assignments and Participations. In certain cases, the market for such","page_number":45,"box":{"x":101,"y":823,"width":782,"height":12}},{"id":"457878e4-fd78-4c71-a1b2-60715fb8c9cd","block_type":"box","text":"instruments may lack sufficient liquidity, and therefore the Fund anticipates that in such cases such instruments","page_number":45,"box":{"x":70,"y":838,"width":803,"height":11}},{"id":"2ae6ebc3-7212-4625-89b9-760b9ebabbb5","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":45,"box":{"x":69,"y":853,"width":809,"height":12}},{"id":"ce03577d-83ae-4347-8f60-c93ad6953d86","block_type":"box","text":"may have an adverse impact on the value of such instruments and on the Fund’s ability to dispose of particular","page_number":45,"box":{"x":69,"y":869,"width":795,"height":11}},{"id":"1f7adb43-cb3d-4227-9ba4-ae7cb2d81847","block_type":"box","text":"Assignments or Participations in response to a specific economic event, such as deterioration in the creditworthiness","page_number":45,"box":{"x":68,"y":884,"width":841,"height":11}},{"id":"9cb3f40b-9df8-4642-a512-9021d4b7bf9f","block_type":"box","text":"of the borrower.","page_number":45,"box":{"x":69,"y":899,"width":111,"height":9}},{"id":"eae0b7ac-2a00-46d0-b035-6bbc82c22929","block_type":"box","text":"II-7","page_number":45,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"b8692863-787c-40d0-9d91-f12a5bdaa3b2","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":45,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"27f4a502-9b5d-4042-b154-ad041e30b664","block_type":"box","text":"Leading financial institutions often act as agent for a broader group of Lenders, generally referred to as a","page_number":46,"box":{"x":102,"y":45,"width":750,"height":11}},{"id":"174578ad-e776-477b-b1c6-a8f672d66984","block_type":"box","text":"syndicate. The syndicate’s agent arranges the loans, holds collateral and accepts payments of principal and interest.","page_number":46,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"504810f9-0c5b-4037-b2a8-07bd1f631734","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":46,"box":{"x":70,"y":75,"width":816,"height":11}},{"id":"60a11d30-cb85-43c0-9f29-1e512b975142","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":46,"box":{"x":101,"y":98,"width":740,"height":11}},{"id":"ddb8e221-685e-4f0d-875e-5c74a6b98573","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":46,"box":{"x":69,"y":113,"width":827,"height":11}},{"id":"aba95ce9-f12b-442d-ae3f-02ea9dbf4005","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":46,"box":{"x":70,"y":128,"width":802,"height":11}},{"id":"4da515bf-add3-4a5c-9e08-f87766bc8677","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":46,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"992700b8-1b46-4276-9cef-0583b86bb08d","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":46,"box":{"x":70,"y":158,"width":827,"height":11}},{"id":"afd88a3f-4d7e-4276-a6ae-8372d26646b7","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":46,"box":{"x":69,"y":173,"width":777,"height":11}},{"id":"94e8e101-1484-43d6-8c84-7aab515ad04b","block_type":"box","text":"investment and may not receive interest during the delay.","page_number":46,"box":{"x":70,"y":188,"width":406,"height":12}},{"id":"4797f4c5-9882-4ad5-9574-e1c30fa98d7c","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":46,"box":{"x":101,"y":211,"width":752,"height":11}},{"id":"5c48054b-2d6d-4275-97a7-b2c05b1729e5","block_type":"box","text":"corporate loans may not be readily available to make additional investments or to meet a Fund’s redemption","page_number":46,"box":{"x":69,"y":226,"width":773,"height":11}},{"id":"0688e725-4cbd-4b9d-9807-487e2e9b8574","block_type":"box","text":"obligations. To the extent the extended settlement process gives rise to short-term liquidity needs, a Fund may hold","page_number":46,"box":{"x":69,"y":241,"width":824,"height":11}},{"id":"5b546173-6b5a-43fa-903e-00d48f26d376","block_type":"box","text":"additional cash, sell investments or temporarily borrow from banks and other lenders.","page_number":46,"box":{"x":69,"y":256,"width":610,"height":11}},{"id":"0039c52f-f229-44ca-b7c6-604c91ecadc6","block_type":"box","text":"In certain circumstances, Loans may not be deemed to be securities under certain federal securities laws.","page_number":46,"box":{"x":102,"y":279,"width":759,"height":11}},{"id":"9369189b-92a7-4db3-b5d6-89d71bad78eb","block_type":"box","text":"Therefore, in the event of fraud or misrepresentation by a borrower or an arranger, Lenders and purchasers of","page_number":46,"box":{"x":68,"y":294,"width":784,"height":11}},{"id":"1fb47679-4e89-45e3-abde-af2195cb249f","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":46,"box":{"x":70,"y":309,"width":772,"height":11}},{"id":"b22692b7-71eb-4c44-9450-40b152b66b44","block_type":"box","text":"securities laws as would otherwise be available for bonds or stocks. Instead, in such cases, parties generally would","page_number":46,"box":{"x":69,"y":324,"width":827,"height":12}},{"id":"e3be079e-51f7-42e7-b8c8-816eb94ce3f6","block_type":"box","text":"rely on the contractual provisions in the Loan agreement itself and common-law fraud protections under applicable","page_number":46,"box":{"x":69,"y":339,"width":815,"height":12}},{"id":"228d31a3-a330-4562-b837-516033f98c6d","block_type":"box","text":"state law.","page_number":46,"box":{"x":69,"y":355,"width":67,"height":9}},{"id":"8b056418-63ba-4f16-a784-acc4bb50cfa9","block_type":"box","text":"Direct Lending.","page_number":46,"box":{"x":102,"y":377,"width":105,"height":12}},{"id":"e45a55f2-ce6d-407d-b6eb-b0140a42c2f8","block_type":"box","text":"The Fund may act as the originator for direct loans and engage in direct lending. Direct loans","page_number":46,"box":{"x":213,"y":377,"width":660,"height":12}},{"id":"203e44f2-1ddc-42fb-90d5-4b76ae60509a","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":46,"box":{"x":69,"y":393,"width":817,"height":11}},{"id":"8f777d5f-43dc-4268-b60c-73a0cd0c21cf","block_type":"box","text":"financing to commercial borrowers directly or through companies acquired (or created) and owned by or otherwise","page_number":46,"box":{"x":68,"y":407,"width":811,"height":12}},{"id":"22e08716-8bef-4bc8-90a4-33fb4f551055","block_type":"box","text":"affiliated with the Fund. The terms of the direct loans are negotiated with borrowers in private transactions.","page_number":46,"box":{"x":69,"y":423,"width":764,"height":11}},{"id":"2c72eb27-b7d6-43e2-abf3-0aa3ee6a57ee","block_type":"box","text":"Furthermore, a direct loan may be secured or unsecured.","page_number":46,"box":{"x":70,"y":438,"width":405,"height":11}},{"id":"85bffcfd-3e8e-4fdb-ab79-83ec47a02895","block_type":"box","text":"In determining whether to make a direct loan, the Fund will rely primarily upon the creditworthiness of the","page_number":46,"box":{"x":102,"y":460,"width":750,"height":12}},{"id":"fc7c32ca-a29f-4eaa-a0e8-b485fa8903af","block_type":"box","text":"borrower and/or any collateral for payment of interest and repayment of principal. The risks associated with direct","page_number":46,"box":{"x":69,"y":475,"width":813,"height":12}},{"id":"7d0a4a8d-cc35-4353-8e21-c47065fa2fec","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":46,"box":{"x":70,"y":491,"width":838,"height":11}},{"id":"0b814e85-c6e9-4b63-af38-35b3843998d9","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":46,"box":{"x":70,"y":506,"width":818,"height":11}},{"id":"1169ee39-66c4-48f0-a4f7-f1e2cfa76381","block_type":"box","text":"money on the loan. Furthermore, direct loans may subject the Fund to liquidity and interest rate risk and certain","page_number":46,"box":{"x":69,"y":521,"width":798,"height":11}},{"id":"da329b1a-a906-4338-a48b-c482f5094c94","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":46,"box":{"x":69,"y":536,"width":825,"height":11}},{"id":"ff8bf36c-21cf-4794-98cc-00c602732dd2","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":46,"box":{"x":70,"y":551,"width":807,"height":11}},{"id":"4840e0b3-5591-4ef6-892b-b36b42aa3a32","block_type":"box","text":"direct loan and/or to value the direct loan.","page_number":46,"box":{"x":69,"y":566,"width":301,"height":11}},{"id":"2bf43116-a61b-4cbb-8016-836593d9b6f8","block_type":"box","text":"When engaging in direct lending, the Fund’s performance may depend, in part, on the ability of the Fund to","page_number":46,"box":{"x":101,"y":589,"width":762,"height":11}},{"id":"054b6fd8-3a60-4630-9a35-9f94f35aeaed","block_type":"box","text":"originate loans on advantageous terms. In originating loans, the Fund will compete with a broad spectrum of lenders.","page_number":46,"box":{"x":69,"y":604,"width":833,"height":11}},{"id":"3e595421-e12f-4f7e-88ca-9f7675a84299","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":46,"box":{"x":70,"y":619,"width":836,"height":11}},{"id":"e9c55a40-a778-4edb-922d-c53e2815f7ce","block_type":"box","text":"such loans, which could reduce Fund performance.","page_number":46,"box":{"x":69,"y":634,"width":362,"height":11}},{"id":"28bf432c-5e68-4ecb-b391-dd70a4fe5dcb","block_type":"box","text":"As part of its lending activities, the Fund may originate loans to companies that are experiencing significant","page_number":46,"box":{"x":101,"y":657,"width":767,"height":11}},{"id":"a20872d1-fa93-41be-8575-817e8d4f3830","block_type":"box","text":"financial or business difficulties, including companies involved in bankruptcy or other reorganization and liquidation","page_number":46,"box":{"x":68,"y":672,"width":821,"height":11}},{"id":"d570ea59-49af-4238-a2e7-ae90e0443a5f","block_type":"box","text":"proceedings. Although the terms of such financing may result in significant financial returns to the Fund, they involve","page_number":46,"box":{"x":70,"y":687,"width":830,"height":11}},{"id":"e950f39d-4216-4430-a08e-460a80520355","block_type":"box","text":"a substantial degree of risk. The level of analytical sophistication, both financial and legal, necessary for successful","page_number":46,"box":{"x":69,"y":702,"width":826,"height":12}},{"id":"3d95e6e6-e2c8-465a-9dac-5153568541df","block_type":"box","text":"financing to companies experiencing significant business and financial difficulties is unusually high.","page_number":46,"box":{"x":68,"y":717,"width":709,"height":12}},{"id":"c61867fc-8ddf-4b40-b9bf-fe0159663438","block_type":"box","text":"Credit Linked Securities.","page_number":46,"box":{"x":102,"y":740,"width":179,"height":9}},{"id":"b9b2f35d-d331-48e4-a16d-d554907e30ba","block_type":"box","text":"Among the income producing securities in which a Fund may invest are credit linked","page_number":46,"box":{"x":287,"y":740,"width":596,"height":11}},{"id":"21d5c3c3-35a8-4b0a-aecb-94d619114e77","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":46,"box":{"x":69,"y":755,"width":837,"height":11}},{"id":"8d204b07-0ca8-4f7c-8a13-80b574558ffe","block_type":"box","text":"or basket of derivative instruments, such as credit default swaps, interest rate swaps and other securities, in order","page_number":46,"box":{"x":69,"y":770,"width":823,"height":11}},{"id":"256447c5-362e-4603-8132-29d6f6b5006e","block_type":"box","text":"to provide exposure to certain fixed-income markets. For instance, a Fund may invest in credit linked securities as a","page_number":46,"box":{"x":68,"y":785,"width":827,"height":12}},{"id":"3ee6ce1b-8094-40a0-a11e-99f5d1a7851d","block_type":"box","text":"cash management tool in order to gain exposure to a certain market and/or to remain fully invested when more","page_number":46,"box":{"x":69,"y":801,"width":795,"height":11}},{"id":"782796d2-eabf-4dd1-ad74-b835a32172f9","block_type":"box","text":"traditional income producing securities are not available.","page_number":46,"box":{"x":68,"y":816,"width":404,"height":11}},{"id":"bd90ced9-d9e2-41b8-be37-e86ed36380e7","block_type":"box","text":"Like an investment in a bond, investments in these credit linked securities represent the right to receive periodic","page_number":46,"box":{"x":102,"y":839,"width":804,"height":11}},{"id":"7723f44e-d2d3-43ad-9eb8-244ce6a8a99b","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":46,"box":{"x":70,"y":853,"width":780,"height":12}},{"id":"fbb63fdb-6ec9-4646-92df-5949e23c0499","block_type":"box","text":"However, these payments are conditioned on the issuer’s receipt of payments from, and the issuer’s potential","page_number":46,"box":{"x":102,"y":876,"width":785,"height":11}},{"id":"62f99add-008c-4eaa-a8fa-ec3be02e521f","block_type":"box","text":"obligations to, the counterparties to the derivative instruments and other securities in which the issuer invests. For","page_number":46,"box":{"x":69,"y":891,"width":821,"height":12}},{"id":"c4b37c01-f4f3-4a55-b053-f184fd5dc475","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":46,"box":{"x":70,"y":906,"width":806,"height":12}},{"id":"4df96ee6-acc9-4cee-b613-79e6744ad5f8","block_type":"box","text":"II-8","page_number":46,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"95881f89-4891-48c0-9324-f5d1a5f7c78b","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":46,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2f764ae2-acc7-4928-a962-fab033e633ab","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":47,"box":{"x":70,"y":45,"width":819,"height":11}},{"id":"358d5bf8-ae91-4425-85ad-ce411761c9bc","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":47,"box":{"x":69,"y":60,"width":826,"height":11}},{"id":"55294b01-e93e-477a-87ad-4dbd8a352d2b","block_type":"box","text":"the issuer would be obligated to pay the counterparty the par (or other agreed upon value) of the referenced debt","page_number":47,"box":{"x":68,"y":75,"width":807,"height":11}},{"id":"f1330116-60cf-4139-8511-62999f1429fd","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":47,"box":{"x":69,"y":90,"width":783,"height":11}},{"id":"933a84bd-076d-43a8-9466-b5f6a9c0ec64","block_type":"box","text":"investments in these instruments are indirectly subject to the risks associated with derivative instruments, including,","page_number":47,"box":{"x":70,"y":105,"width":833,"height":11}},{"id":"742d0cf0-b673-4322-b205-c1c55e824651","block_type":"box","text":"among others, credit risk, default or similar event risk, counterparty risk, interest rate risk, leverage risk and","page_number":47,"box":{"x":69,"y":120,"width":771,"height":12}},{"id":"46c649d6-4cc9-4528-a194-679d23a44c00","block_type":"box","text":"management risk. It is also expected that the securities will be exempt from registration under the Securities Act.","page_number":47,"box":{"x":69,"y":135,"width":808,"height":12}},{"id":"52c43e08-f73f-4af4-b069-6c6c568e210b","block_type":"box","text":"Accordingly, there may be no established trading market for the securities and they may constitute illiquid","page_number":47,"box":{"x":68,"y":150,"width":752,"height":12}},{"id":"f59e5073-ae02-4731-a6cc-212f611f7ce9","block_type":"box","text":"investments.","page_number":47,"box":{"x":70,"y":166,"width":89,"height":9}},{"id":"310f1f66-ecee-4410-9f64-3508a8262656","block_type":"box","text":"Debt Securities.","page_number":47,"box":{"x":102,"y":188,"width":116,"height":9}},{"id":"bdb0fe10-edff-49e8-89bd-27f9c7246662","block_type":"box","text":"Debt securities, such as bonds, involve credit risk. This is the risk that the issuer will not make","page_number":47,"box":{"x":225,"y":188,"width":677,"height":11}},{"id":"45982af3-9076-4f47-ad6e-c61f764edbe2","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":47,"box":{"x":68,"y":203,"width":839,"height":12}},{"id":"334d7e7a-6de3-4266-a48b-a7fb12e6f36d","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":47,"box":{"x":68,"y":218,"width":787,"height":12}},{"id":"433be14f-969a-4521-9b78-e49e8dce2bcf","block_type":"box","text":"creditworthiness may also affect the value of a Fund’s investment in that issuer. Credit risk is reduced to the extent","page_number":47,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"f778effe-1008-4291-82d0-33ded461c83b","block_type":"box","text":"a Fund limits its debt investments to U.S. Government Securities.","page_number":47,"box":{"x":69,"y":249,"width":466,"height":9}},{"id":"2f91ecbc-7f07-4d39-86db-7b876510c547","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":47,"box":{"x":101,"y":271,"width":784,"height":12}},{"id":"0980cc0a-c789-427b-89c9-aad3e8c09816","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":47,"box":{"x":68,"y":286,"width":792,"height":12}},{"id":"e1beb791-2dfb-4c57-91f1-d4131c0ea0f4","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":47,"box":{"x":70,"y":302,"width":806,"height":11}},{"id":"314a050c-6e6f-4e46-9880-ed7213fb841b","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":47,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"b96761aa-4ff1-482d-964e-af5fbc1fb42b","block_type":"box","text":"rates than will the market price of shorter-term debt securities.","page_number":47,"box":{"x":69,"y":332,"width":448,"height":11}},{"id":"702a4003-ab46-4b5d-b787-943aebc8e777","block_type":"box","text":"During periods of rising interest rates, the average life of certain fixed-income securities is extended because of","page_number":47,"box":{"x":102,"y":355,"width":798,"height":11}},{"id":"e09fc8d7-0f37-45da-8982-1b50f360d0d8","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":47,"box":{"x":69,"y":370,"width":813,"height":11}},{"id":"f4cd3562-abb7-4705-acdd-0958001ac6e5","block_type":"box","text":"these fixed-income securities, especially mortgage-related securities, making them more sensitive to changes in","page_number":47,"box":{"x":68,"y":385,"width":801,"height":11}},{"id":"55eaed7c-6e4c-4455-ad13-d05c2e5a13a0","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":47,"box":{"x":70,"y":400,"width":806,"height":11}},{"id":"efe3a6a5-8f8a-4f0b-8796-2003fa5fe325","block_type":"box","text":"lose value. This is known as extension risk.","page_number":47,"box":{"x":70,"y":415,"width":307,"height":9}},{"id":"58048eb0-2fab-457b-a3b5-a1b292104604","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":47,"box":{"x":101,"y":438,"width":778,"height":11}},{"id":"b2d28e4f-3a6b-482a-9d3b-c506b7dd5046","block_type":"box","text":"interest rates. Fixed-income securities with longer maturities, which tend to produce higher yields, are subject to","page_number":47,"box":{"x":70,"y":453,"width":798,"height":11}},{"id":"b7b3dc0e-5a86-4283-ac13-6afcb28e9455","block_type":"box","text":"potentially greater capital appreciation and depreciation than securities with shorter maturities. The Funds are not","page_number":47,"box":{"x":70,"y":468,"width":812,"height":11}},{"id":"d7e90d76-b04c-421e-8038-84cbef5a7d37","block_type":"box","text":"restricted to any maximum or minimum time to maturity in purchasing individual portfolio securities, and the average","page_number":47,"box":{"x":69,"y":483,"width":831,"height":11}},{"id":"de83cb5b-094d-4a2f-9e24-45de30b7a2fd","block_type":"box","text":"maturity of a Fund’s assets will vary.","page_number":47,"box":{"x":69,"y":498,"width":259,"height":11}},{"id":"70645230-0c16-4aa8-a98d-b50bafde8a1e","block_type":"box","text":"Floating and Variable Rate Securities","page_number":47,"box":{"x":102,"y":521,"width":260,"height":11}},{"id":"34473dcd-5973-4a4e-88e4-80faab03f70b","block_type":"box","text":". Certain Funds may invest in debt instruments that pay a variable coupon","page_number":47,"box":{"x":364,"y":521,"width":526,"height":11}},{"id":"47276c4a-6d70-4d2e-b13c-70177590b94e","block_type":"box","text":"rate. Securities with floating or variable interest rates can be less sensitive to interest rate changes than securities","page_number":47,"box":{"x":69,"y":536,"width":821,"height":11}},{"id":"88bd9a7a-94e7-4a39-9932-100ed21de418","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":47,"box":{"x":68,"y":551,"width":834,"height":11}},{"id":"32a31296-8d46-4c7c-ae85-af8653909a3d","block_type":"box","text":"rates in general. Conversely, floating rate securities will not generally increase in value if interest rates decline. The","page_number":47,"box":{"x":69,"y":566,"width":820,"height":11}},{"id":"eb81e24c-3948-4533-9061-5a2e6fc98719","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":47,"box":{"x":70,"y":581,"width":838,"height":12}},{"id":"054bfc65-8004-46ba-a045-c58544d6e136","block_type":"box","text":"the investments. Benchmark interest rates used for floating and variable rate securities may not accurately track","page_number":47,"box":{"x":68,"y":596,"width":804,"height":12}},{"id":"63b279d7-13b0-48a4-add0-fe541cc158c4","block_type":"box","text":"market interest rates.","page_number":47,"box":{"x":69,"y":612,"width":153,"height":9}},{"id":"c176740b-c34f-40cf-825d-fa0c3fc8f039","block_type":"box","text":"Inflation-Indexed Bonds.","page_number":47,"box":{"x":102,"y":634,"width":169,"height":9}},{"id":"46b8cdf0-a790-45e3-963f-743e75fef8f4","block_type":"box","text":"Certain Funds may invest in inflation-indexed bonds, which are fixed-income securities or","page_number":47,"box":{"x":278,"y":634,"width":632,"height":11}},{"id":"82dd24e2-af2e-4596-b9bb-9f2cd3ab2439","block_type":"box","text":"other instruments whose principal value is periodically adjusted according to the rate of inflation. Two structures are","page_number":47,"box":{"x":69,"y":649,"width":828,"height":12}},{"id":"34690d72-77f2-4291-a27c-89cea604e18b","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":47,"box":{"x":69,"y":664,"width":827,"height":12}},{"id":"dba2aaeb-3077-49b1-93c1-932532d1f24b","block_type":"box","text":"the bond. Most other issuers pay out the Consumer Price Index (“CPI”) accruals as part of a semi-annual coupon.","page_number":47,"box":{"x":68,"y":680,"width":810,"height":11}},{"id":"cf4903ef-48b6-4647-849c-27d0b728e766","block_type":"box","text":"Inflation-indexed securities issued by the U.S. Treasury have maturities of five, ten or thirty years, although it is","page_number":47,"box":{"x":102,"y":702,"width":792,"height":12}},{"id":"656042fd-18a4-4b91-90d4-a3d224b7b986","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":47,"box":{"x":70,"y":717,"width":833,"height":12}},{"id":"956913bd-dd28-4c3b-b866-829d6e48c704","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":47,"box":{"x":69,"y":732,"width":810,"height":12}},{"id":"5d1ce454-58a4-4457-8e00-dd9a5c61999c","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":47,"box":{"x":70,"y":747,"width":814,"height":12}},{"id":"6024e95b-7756-4483-8b73-5d8c89bf4fbe","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":47,"box":{"x":69,"y":762,"width":816,"height":12}},{"id":"821dbf65-239a-432d-a136-ebf40ad5ae93","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":47,"box":{"x":69,"y":777,"width":828,"height":12}},{"id":"4255365c-73fd-43c2-b824-d11b952117e0","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":47,"box":{"x":69,"y":792,"width":828,"height":12}},{"id":"36f81f9c-c95d-4ce2-8eb0-c55e384df694","block_type":"box","text":"and the second semi-annual interest payment would be $15.45 ($1,030 times 1.5%).","page_number":47,"box":{"x":69,"y":807,"width":610,"height":12}},{"id":"df19550d-d5d8-4ffd-a813-790c5aec7ce2","block_type":"box","text":"If the periodic adjustment rate measuring inflation falls, the principal value of inflation-indexed bonds will be","page_number":47,"box":{"x":102,"y":831,"width":767,"height":11}},{"id":"7871120c-7b45-4b9b-b572-2a0234fd6438","block_type":"box","text":"adjusted downward, and, consequently, the interest payable on these securities (calculated with respect to a smaller","page_number":47,"box":{"x":69,"y":846,"width":833,"height":11}},{"id":"2a8e18a8-0fee-44cb-a49e-86a220f5ef40","block_type":"box","text":"principal amount) will be reduced. Repayment of the original bond principal upon maturity (as adjusted for inflation) is","page_number":47,"box":{"x":70,"y":861,"width":834,"height":11}},{"id":"d4fe49ea-4b34-48fb-8dc4-a70cc72fe3ba","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":47,"box":{"x":68,"y":876,"width":795,"height":11}},{"id":"483f8ff6-0999-4016-8827-93f5d038b0a5","block_type":"box","text":"current market value of the bonds is not guaranteed, and will fluctuate. Certain Funds may also invest in other","page_number":47,"box":{"x":69,"y":891,"width":788,"height":12}},{"id":"27f94484-3180-4bfa-9148-26a19217a7bf","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":47,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"cb431582-e8b1-4535-b34e-a304e9933cbb","block_type":"box","text":"II-9","page_number":47,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"fafdb1f6-1821-4378-828f-8809e9f1bb47","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":47,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d25b2d86-6bc7-470e-b651-cb319775242a","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":48,"box":{"x":68,"y":45,"width":821,"height":11}},{"id":"b511169b-ed6c-4282-9db3-9cd494457e35","block_type":"box","text":"Fund purchases inflation-indexed bonds offered by foreign issuers, the rate of inflation measured by the foreign","page_number":48,"box":{"x":70,"y":60,"width":792,"height":11}},{"id":"ed5ff27f-810e-4fca-ab89-83464197fe7c","block_type":"box","text":"inflation index may not be correlated to the rate of inflation in the United States.","page_number":48,"box":{"x":70,"y":75,"width":570,"height":11}},{"id":"eac3dab4-fe7c-4a99-a054-4a4d9d9da685","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":48,"box":{"x":101,"y":98,"width":780,"height":11}},{"id":"85bb390c-b5fa-44ff-8b2e-2548631b0787","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":48,"box":{"x":70,"y":113,"width":831,"height":11}},{"id":"367771be-83f8-42b8-8adc-e6de98aba3ee","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":48,"box":{"x":70,"y":128,"width":808,"height":11}},{"id":"8d13693f-1248-46a3-9812-c60f9a25df50","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":48,"box":{"x":70,"y":143,"width":796,"height":10}},{"id":"fd4e198e-6819-4e6c-93a8-4397adce4045","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":48,"box":{"x":70,"y":158,"width":805,"height":11}},{"id":"30ac3d7e-93a8-4ccc-837a-d5477faa4920","block_type":"box","text":"assurance, however, that the value of inflation-indexed bonds will be directly correlated to changes in interest rates.","page_number":48,"box":{"x":69,"y":173,"width":824,"height":11}},{"id":"cd55f0b5-ac0b-4f30-aaf6-916e745248e2","block_type":"box","text":"While these securities are expected to be protected from long-term inflationary trends, short-term increases in","page_number":48,"box":{"x":101,"y":196,"width":788,"height":11}},{"id":"0cbebbbc-2246-4751-b71a-b25d8afc86e7","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":48,"box":{"x":70,"y":211,"width":825,"height":11}},{"id":"d23031c1-3eb5-4a80-840b-041918993730","block_type":"box","text":"changes in currency exchange rates), investors in these securities may not be protected to the extent that the","page_number":48,"box":{"x":69,"y":226,"width":784,"height":11}},{"id":"6aa664e6-6d77-44e6-a93c-61ee7dbdc8aa","block_type":"box","text":"increase is not reflected in the bond’s inflation measure.","page_number":48,"box":{"x":70,"y":241,"width":403,"height":9}},{"id":"57bfad1a-fd48-4ec1-be5e-d5adff8c77cd","block_type":"box","text":"In general, the measure used to determine the periodic adjustment of U.S. inflation-indexed bonds is the","page_number":48,"box":{"x":102,"y":264,"width":746,"height":11}},{"id":"958c4ee4-892c-4b15-97b0-ef7f1a26cca3","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":48,"box":{"x":69,"y":279,"width":786,"height":11}},{"id":"70092c56-e86c-4fc3-aeac-2366c1e32c79","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":48,"box":{"x":69,"y":294,"width":810,"height":11}},{"id":"8ba9300d-ad10-482c-92a6-d157a61a217b","block_type":"box","text":"food, transportation and energy. Inflation-indexed bonds issued by a foreign government are generally adjusted to","page_number":48,"box":{"x":68,"y":309,"width":809,"height":11}},{"id":"56be10f9-a152-4ce3-af61-3bfa0200d158","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":48,"box":{"x":69,"y":324,"width":830,"height":12}},{"id":"14cbd68d-531d-4ba4-91a9-31e74cb7ef25","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":48,"box":{"x":68,"y":339,"width":833,"height":12}},{"id":"b10bcc90-bd58-4acb-89f4-d305a72ad265","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":48,"box":{"x":68,"y":355,"width":840,"height":11}},{"id":"9e9ac3bc-f547-485a-bf03-69d961559ddb","block_type":"box","text":"United States.","page_number":48,"box":{"x":70,"y":370,"width":99,"height":9}},{"id":"c75d8fe4-79cd-4f41-a937-352e3b8c9051","block_type":"box","text":"Any increase in the principal amount of an inflation-indexed bond will be considered taxable ordinary income,","page_number":48,"box":{"x":101,"y":392,"width":774,"height":12}},{"id":"915a26e0-102d-4a89-a597-c2dfa32604d6","block_type":"box","text":"even though investors do not receive their principal until maturity.","page_number":48,"box":{"x":69,"y":408,"width":464,"height":11}},{"id":"1ec02903-efc3-46d8-8223-558e3b1d77ef","block_type":"box","text":"Investment Grade Debt Obligations.","page_number":48,"box":{"x":102,"y":430,"width":252,"height":11}},{"id":"4190b772-495a-48c5-b037-304f522f4f03","block_type":"box","text":"Certain Funds may invest in “investment grade securities,” which are","page_number":48,"box":{"x":360,"y":430,"width":493,"height":11}},{"id":"4ae38739-38b4-4790-8ab3-ce141bc28f56","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":48,"box":{"x":69,"y":445,"width":823,"height":12}},{"id":"8c3a6e0b-0c44-4af2-84ac-7fbc0b54ea14","block_type":"box","text":"Manager. Certain Funds may invest in debt securities rated Aaa by Moody’s or AAA by S&P. It should be noted that","page_number":48,"box":{"x":70,"y":460,"width":815,"height":12}},{"id":"316d9a82-3cb5-415d-89ed-17865c4b2c92","block_type":"box","text":"debt obligations rated in the lowest of the top four ratings (","page_number":48,"box":{"x":69,"y":475,"width":420,"height":12}},{"id":"0cb2a69d-498d-4aab-b499-c81b37a05f4a","block_type":"box","text":"i.e.","page_number":48,"box":{"x":492,"y":476,"width":20,"height":8}},{"id":"0a944bca-fc45-4e45-8b12-154b63146264","block_type":"box","text":", “Baa” by Moody’s or “BBB” by S&P) are considered","page_number":48,"box":{"x":514,"y":476,"width":377,"height":11}},{"id":"04df0b70-213f-4201-a72c-8506f1ca96db","block_type":"box","text":"to have some speculative characteristics and are more sensitive to economic change than higher rated securities. If","page_number":48,"box":{"x":68,"y":491,"width":829,"height":11}},{"id":"e18e1bd4-63ab-4434-99db-6195cf98cd9e","block_type":"box","text":"an investment grade security of a Fund is subsequently downgraded below investment grade, the Fund’s Manager will","page_number":48,"box":{"x":69,"y":506,"width":836,"height":11}},{"id":"fe746476-b626-486d-8aff-74391fd88c08","block_type":"box","text":"consider such an event in determining whether the Fund should continue to hold the security. Subject to its","page_number":48,"box":{"x":69,"y":521,"width":763,"height":11}},{"id":"227bc41d-685a-4566-9e2d-1d3824dcb928","block_type":"box","text":"investment strategies, there is no limit on the amount of such downgraded securities a Fund may hold.","page_number":48,"box":{"x":70,"y":536,"width":731,"height":11}},{"id":"07bf51c5-a6c8-4e52-92dc-c6da509167fc","block_type":"box","text":"See Appendix A to this SAI for a description of applicable securities ratings.","page_number":48,"box":{"x":102,"y":559,"width":536,"height":11}},{"id":"3bc7103f-0bf6-4f2b-9861-e8c67bf3b4c9","block_type":"box","text":"High Yield Investments (“Junk Bonds”).","page_number":48,"box":{"x":102,"y":582,"width":278,"height":11}},{"id":"f064667f-c0a0-4197-96c3-88a2222336d0","block_type":"box","text":"Non-investment grade or “high yield” fixed-income or convertible securities commonly known to investors as","page_number":48,"box":{"x":102,"y":604,"width":767,"height":11}},{"id":"676563ed-691b-4905-b6e7-6ff38c3aa61f","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":48,"box":{"x":70,"y":619,"width":834,"height":11}},{"id":"f2f42d89-beb4-4129-913f-731b0006c8b4","block_type":"box","text":"that Fund management believes are of comparable quality. While generally providing greater income and opportunity","page_number":48,"box":{"x":68,"y":634,"width":828,"height":12}},{"id":"295970d3-8dfd-4c2c-8ce8-6c83bb4364a1","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":48,"box":{"x":68,"y":649,"width":841,"height":12}},{"id":"4a450162-9755-4efb-a311-772547cc8132","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":48,"box":{"x":69,"y":664,"width":827,"height":12}},{"id":"0dac9822-a63c-461a-9b3a-0005a378bd1c","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":48,"box":{"x":70,"y":680,"width":830,"height":11}},{"id":"af803c94-8bb4-42ee-9582-867a96e833f4","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":48,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"8e95b502-501e-4de7-b8d6-b14edf959055","block_type":"box","text":"ratings may from time to time change, positively or negatively, to reflect developments regarding the issuer’s financial","page_number":48,"box":{"x":69,"y":710,"width":838,"height":11}},{"id":"c5d16c6c-b6b7-411b-8941-f8f780dc56fe","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":48,"box":{"x":69,"y":725,"width":817,"height":11}},{"id":"c9f5ea4d-8b40-4372-93ed-87f72cc7f20e","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":48,"box":{"x":69,"y":740,"width":837,"height":11}},{"id":"671a4dc5-015a-4183-9d11-d6a371578155","block_type":"box","text":"risk than higher rated securities.","page_number":48,"box":{"x":69,"y":755,"width":230,"height":11}},{"id":"6978e1c6-e044-4e81-98a1-8b567604b63d","block_type":"box","text":"The major risks in junk bond investments include the following:","page_number":48,"box":{"x":101,"y":778,"width":447,"height":11}},{"id":"95c5d59d-4ba4-4ed2-81f8-de9f76e026d9","block_type":"box","text":"•","page_number":48,"box":{"x":69,"y":801,"width":6,"height":4}},{"id":"58ab076c-d9f0-455f-b232-3bfcfdf50ab7","block_type":"box","text":"Junk bonds may be issued by less creditworthy companies. These securities are vulnerable to adverse changes","page_number":48,"box":{"x":101,"y":798,"width":796,"height":11}},{"id":"2aa24e22-58d0-4383-8d46-e14cb620a400","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":48,"box":{"x":102,"y":813,"width":792,"height":11}},{"id":"e7658cee-02b1-4783-b61e-945ddd7bab19","block_type":"box","text":"interest or principal payment obligations because of an economic downturn, specific issuer developments or the","page_number":48,"box":{"x":102,"y":828,"width":799,"height":12}},{"id":"417bb110-4abe-4217-adf6-c564bd73f60d","block_type":"box","text":"unavailability of additional financing.","page_number":48,"box":{"x":102,"y":843,"width":256,"height":12}},{"id":"782f2998-41de-40de-8285-f461fe7e0367","block_type":"box","text":"•","page_number":48,"box":{"x":69,"y":866,"width":6,"height":5}},{"id":"9372e6d5-507d-4fc7-be68-0f282bcf1f34","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":48,"box":{"x":101,"y":863,"width":797,"height":12}},{"id":"0e1899b7-c2cd-465d-ba4f-cb373439a727","block_type":"box","text":"investment grade bonds. If the issuer experiences financial stress, it may be unable to meet its debt obligations.","page_number":48,"box":{"x":102,"y":879,"width":804,"height":11}},{"id":"b6f8c868-58f1-4629-ae97-99cc14cbfe67","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":48,"box":{"x":101,"y":894,"width":769,"height":11}},{"id":"79fdba7a-31a1-4957-8507-bea3cd06366c","block_type":"box","text":"II-10","page_number":48,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d9a77720-bb18-4f87-99fb-d46413465583","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":48,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6c758d4c-f6e8-41ac-a655-4f5cd4485281","block_type":"box","text":"unavailability of additional financing. Issuers of high yield securities are often in the growth stage of their","page_number":49,"box":{"x":102,"y":45,"width":746,"height":11}},{"id":"4ee024bc-2813-4d86-9c4c-f9162b41b46c","block_type":"box","text":"development and/or involved in a reorganization or takeover.","page_number":49,"box":{"x":101,"y":60,"width":432,"height":11}},{"id":"71db7f12-ddc7-46e6-a583-41a9f8ade509","block_type":"box","text":"•","page_number":49,"box":{"x":69,"y":83,"width":6,"height":4}},{"id":"2d3eab63-9d13-498e-85d5-c2c959307fbb","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":49,"box":{"x":101,"y":80,"width":808,"height":11}},{"id":"fd9d6327-ff35-4862-aba2-4ab0ee01649d","block_type":"box","text":"senior obligations are generally paid off before the junior obligations, which will potentially limit a Fund’s ability","page_number":49,"box":{"x":102,"y":95,"width":789,"height":11}},{"id":"cf3d7675-e92c-4571-bdad-8ad20508df16","block_type":"box","text":"to fully recover principal or to receive interest payments when senior securities are in default. Thus, investors in","page_number":49,"box":{"x":101,"y":110,"width":796,"height":11}},{"id":"2508cdaf-17d0-4cfb-8b61-0049015e1486","block_type":"box","text":"high yield securities have a lower degree of protection with respect to principal and interest payments than do","page_number":49,"box":{"x":102,"y":125,"width":782,"height":12}},{"id":"1679f0e7-52c5-4beb-944b-82ea8375b012","block_type":"box","text":"investors in higher rated securities.","page_number":49,"box":{"x":102,"y":141,"width":249,"height":11}},{"id":"01ada3e5-19dc-4a09-b13b-753548a95374","block_type":"box","text":"•","page_number":49,"box":{"x":69,"y":163,"width":6,"height":5}},{"id":"a2ed89e9-301b-4c32-9a1e-2eeff16d9224","block_type":"box","text":"Junk bonds frequently have redemption features that permit an issuer to repurchase the security from a Fund","page_number":49,"box":{"x":101,"y":161,"width":780,"height":11}},{"id":"982eb36a-b8a8-4d03-9dd6-e17b26afc7bc","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":49,"box":{"x":102,"y":176,"width":784,"height":11}},{"id":"61592be0-6d19-4789-ad7a-92aa1f5ac671","block_type":"box","text":"lower yields and may lose income.","page_number":49,"box":{"x":102,"y":191,"width":242,"height":11}},{"id":"025835fb-8735-416b-9dac-542fa91ad205","block_type":"box","text":"•","page_number":49,"box":{"x":69,"y":214,"width":6,"height":4}},{"id":"eb2f8119-4a29-4729-a01e-c50732074b1b","block_type":"box","text":"Prices of junk bonds are subject to extreme price fluctuations. Negative economic developments may have a","page_number":49,"box":{"x":102,"y":211,"width":772,"height":11}},{"id":"e33514dd-48cc-4a17-8089-3ca0937ffd1e","block_type":"box","text":"greater impact on the prices of junk bonds than on those of other higher rated fixed-income securities.","page_number":49,"box":{"x":101,"y":226,"width":729,"height":11}},{"id":"f5267131-3173-4d37-99e4-5667bbcd371e","block_type":"box","text":"•","page_number":49,"box":{"x":69,"y":249,"width":6,"height":5}},{"id":"6a425faa-e7f7-4cbd-ba56-c3c2fdce3cae","block_type":"box","text":"Junk bonds may be less liquid than higher rated fixed-income securities even under normal economic conditions.","page_number":49,"box":{"x":101,"y":246,"width":802,"height":11}},{"id":"f76f4253-9bcb-4867-936a-bfb82c6cb3af","block_type":"box","text":"Under certain economic and/or market conditions, a Fund may have difficulty disposing of certain high yield","page_number":49,"box":{"x":102,"y":261,"width":768,"height":12}},{"id":"a76452d2-d4cd-4c5d-96b8-8dcf3fb100e4","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":49,"box":{"x":102,"y":276,"width":805,"height":12}},{"id":"063a22e4-14f5-4784-9b53-cd313ab825b8","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":49,"box":{"x":102,"y":292,"width":781,"height":11}},{"id":"8ebfe898-4b34-42a9-b7f8-63a0adedfa70","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":49,"box":{"x":102,"y":307,"width":767,"height":11}},{"id":"baea7977-7324-42ec-b30e-44c54a520e6a","block_type":"box","text":"liquid than higher rated bonds, judgment may play a greater role in valuing certain of a Fund’s portfolio securities","page_number":49,"box":{"x":102,"y":322,"width":806,"height":11}},{"id":"ebd399d1-6326-4a69-944f-630ba2acb94a","block_type":"box","text":"than in the case of securities trading in a more liquid market.","page_number":49,"box":{"x":101,"y":337,"width":436,"height":11}},{"id":"d24b05a7-5abc-4479-ae67-109576460275","block_type":"box","text":"•","page_number":49,"box":{"x":69,"y":360,"width":6,"height":5}},{"id":"e03cbc37-3184-4abd-ba87-039b59ed0495","block_type":"box","text":"The secondary markets for high yield securities are not as liquid as the secondary markets for higher rated","page_number":49,"box":{"x":101,"y":357,"width":763,"height":11}},{"id":"5bad4805-9d31-420e-ad5d-793162fc2416","block_type":"box","text":"securities. The secondary markets for high yield securities are concentrated in relatively few market makers and","page_number":49,"box":{"x":102,"y":372,"width":798,"height":11}},{"id":"0df79ef6-5416-409a-a240-e1dfbdffd7d8","block_type":"box","text":"participants in the markets are mostly institutional investors, including insurance companies, banks, other","page_number":49,"box":{"x":102,"y":388,"width":759,"height":11}},{"id":"3c81a0f4-20a1-4c04-a955-c3d435aad2dc","block_type":"box","text":"financial institutions and mutual funds. In addition, the trading volume for high yield securities is generally lower","page_number":49,"box":{"x":101,"y":402,"width":798,"height":12}},{"id":"70e02343-4b14-40cb-a5a2-2386e7508b11","block_type":"box","text":"than that for higher rated securities and the secondary markets could contract under adverse market or","page_number":49,"box":{"x":101,"y":418,"width":739,"height":11}},{"id":"8e5a9380-d133-4957-874d-36c1b56fb9f0","block_type":"box","text":"economic conditions independent of any specific adverse changes in the condition of a particular issuer. Under","page_number":49,"box":{"x":101,"y":433,"width":792,"height":11}},{"id":"0587ad81-5630-4e42-9de1-d1f340e9336e","block_type":"box","text":"certain economic and/or market conditions, a Fund may have difficulty disposing of certain high yield securities","page_number":49,"box":{"x":101,"y":448,"width":797,"height":11}},{"id":"ab5b17ad-1a98-4c4c-8875-7fdaac240a79","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":49,"box":{"x":101,"y":463,"width":791,"height":11}},{"id":"9546270f-f1c0-43d4-9a7a-fc13aec8edac","block_type":"box","text":"affect the market price of the high yield security, which may result in increased difficulty selling the particular","page_number":49,"box":{"x":102,"y":478,"width":777,"height":11}},{"id":"92efaae2-6c99-407b-8134-475a352e1dba","block_type":"box","text":"issue and obtaining accurate market quotations on the issue when valuing a Fund’s assets. Market quotations","page_number":49,"box":{"x":102,"y":493,"width":788,"height":11}},{"id":"4f687a69-fe7e-4859-8921-e863db36225a","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":49,"box":{"x":102,"y":508,"width":797,"height":12}},{"id":"15492ed5-1ca5-44bf-a814-2e953da677d1","block_type":"box","text":"actual prices available for a purchase or sale. When the secondary market for high yield securities becomes","page_number":49,"box":{"x":102,"y":523,"width":769,"height":12}},{"id":"84e623db-0620-4c08-bee6-c271f1c9a80f","block_type":"box","text":"more illiquid, or in the absence of readily available market quotations for such securities, the relative lack of","page_number":49,"box":{"x":102,"y":538,"width":772,"height":12}},{"id":"6f5bbc24-915b-4568-9af8-8e239558b08a","block_type":"box","text":"reliable objective data makes it more difficult to value a Fund’s securities, and judgment plays a more important","page_number":49,"box":{"x":102,"y":554,"width":801,"height":11}},{"id":"cfcc40f1-2abb-475b-9841-60423bdb9dbf","block_type":"box","text":"role in determining such valuations.","page_number":49,"box":{"x":102,"y":569,"width":252,"height":11}},{"id":"b4397de1-ebc4-448e-9c13-563b60053eae","block_type":"box","text":"•","page_number":49,"box":{"x":69,"y":592,"width":6,"height":4}},{"id":"a51eb61f-8ef5-49b6-a09c-6a24ab0d770f","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":49,"box":{"x":101,"y":589,"width":808,"height":11}},{"id":"a7f3ed2e-2f62-4397-af23-50f1495fd8bb","block_type":"box","text":"a defaulting issuer.","page_number":49,"box":{"x":102,"y":604,"width":134,"height":11}},{"id":"3c840f82-b83c-422d-b544-0460c250e42c","block_type":"box","text":"•","page_number":49,"box":{"x":69,"y":627,"width":6,"height":5}},{"id":"4522b1df-6b95-4086-a876-03db79f754fc","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":49,"box":{"x":101,"y":624,"width":800,"height":11}},{"id":"ad4a68b4-a9ce-493e-a630-a2674ccf67fe","block_type":"box","text":"or expectation of adverse news, whether or not it is based on fundamental analysis. Additionally, prices for high","page_number":49,"box":{"x":102,"y":639,"width":793,"height":12}},{"id":"d9d63c90-76e1-4110-a608-8cadff9dfc31","block_type":"box","text":"yield securities may be affected by legislative and regulatory developments. These developments could adversely","page_number":49,"box":{"x":101,"y":654,"width":808,"height":12}},{"id":"4936362a-d07b-4f97-be4e-c0e18824fbee","block_type":"box","text":"affect a Fund’s NAV and investment practices, the secondary market for high yield securities, the financial","page_number":49,"box":{"x":102,"y":669,"width":756,"height":12}},{"id":"8ca58d8e-7010-4e96-baf6-93fa15b732e7","block_type":"box","text":"condition of issuers of these securities and the value and liquidity of outstanding high yield securities, especially","page_number":49,"box":{"x":101,"y":685,"width":803,"height":11}},{"id":"be493e67-6ff4-4385-a59a-ceeadbcffc63","block_type":"box","text":"in a thinly traded market. For example, federal legislation requiring the divestiture by federally insured savings","page_number":49,"box":{"x":102,"y":700,"width":781,"height":11}},{"id":"2412c305-debb-4f0e-9cfc-c845c6202251","block_type":"box","text":"and loan associations of their investments in high yield bonds and limiting the deductibility of interest by certain","page_number":49,"box":{"x":102,"y":715,"width":798,"height":11}},{"id":"d8e20fc9-8a95-4e22-b1c6-747903bcf152","block_type":"box","text":"corporate issuers of high yield bonds adversely affected the market in the past.","page_number":49,"box":{"x":101,"y":730,"width":566,"height":11}},{"id":"e092dc1e-b1d9-4a46-906a-927843274224","block_type":"box","text":"•","page_number":49,"box":{"x":69,"y":753,"width":6,"height":5}},{"id":"17de907d-07e5-4155-84be-fd0cbcbc503e","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":49,"box":{"x":101,"y":750,"width":751,"height":11}},{"id":"38777772-1613-4907-81da-f342fc168048","block_type":"box","text":"investment grade security’s principal and interest payments, but does not address market value risk. Because","page_number":49,"box":{"x":102,"y":766,"width":786,"height":11}},{"id":"cf94d960-d397-4770-9a61-72519fc4d36f","block_type":"box","text":"such ratings of the ratings agencies may not always reflect current conditions and events, in addition to using","page_number":49,"box":{"x":102,"y":780,"width":782,"height":12}},{"id":"9bc0a61a-0669-4136-85e0-30c1c88630e2","block_type":"box","text":"recognized rating agencies and other sources, the Manager or sub-adviser performs its own analysis of the","page_number":49,"box":{"x":102,"y":795,"width":762,"height":12}},{"id":"9d02207c-b4f4-4b3b-b599-4f71e435f97a","block_type":"box","text":"issuers whose non-investment grade securities a Fund holds. Because of this, the Fund’s performance may","page_number":49,"box":{"x":102,"y":811,"width":767,"height":11}},{"id":"b27b9a14-5bcf-4db7-8623-8edc894320c4","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":49,"box":{"x":101,"y":826,"width":806,"height":11}},{"id":"6c8a07c5-e974-4606-a7f2-8c1e7e31261d","block_type":"box","text":"higher-rated securities.","page_number":49,"box":{"x":102,"y":841,"width":161,"height":11}},{"id":"dc982049-9b95-46e3-8a73-404991aeedab","block_type":"box","text":"In selecting non-investment grade securities, the Manager or sub-adviser considers factors such as those","page_number":49,"box":{"x":102,"y":863,"width":751,"height":12}},{"id":"da7afcac-17bc-409d-93d9-fb8e926f36b7","block_type":"box","text":"relating to the creditworthiness of issuers, the ratings and performance of the securities, the protections afforded","page_number":49,"box":{"x":69,"y":879,"width":814,"height":11}},{"id":"9d9056e6-3783-4e00-9439-1ab05060cd0e","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":49,"box":{"x":68,"y":894,"width":812,"height":11}},{"id":"f7842a99-4140-438f-9ee9-e2d5a7a79c56","block_type":"box","text":"investment grade securities held by the Fund for their ability to make required principal and interest payments, as","page_number":49,"box":{"x":70,"y":909,"width":808,"height":11}},{"id":"ba8ba988-f67c-4fbf-9e67-d81e64e02fdd","block_type":"box","text":"II-11","page_number":49,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ecb0f100-c8fc-4fd0-8c9b-d806fa7c37a1","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":49,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2f7fd84c-3390-432d-9325-a5d599b5b998","block_type":"box","text":"well as in an effort to control the liquidity of the Fund so that it can meet redemption requests. If a security’s rating","page_number":50,"box":{"x":68,"y":45,"width":825,"height":11}},{"id":"b35e5069-8bf2-4190-8abc-0d643e1e514c","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":50,"box":{"x":70,"y":60,"width":779,"height":11}},{"id":"3f005023-778e-4309-9fde-161156bdbf41","block_type":"box","text":"consider whether the Fund should continue to hold the security.","page_number":50,"box":{"x":69,"y":75,"width":451,"height":11}},{"id":"528683d2-2591-4ab5-9148-55e131c20929","block_type":"box","text":"In the event that a Fund investing in high yield securities experiences an unexpected level of net redemptions,","page_number":50,"box":{"x":102,"y":98,"width":782,"height":11}},{"id":"0abac0bd-9db9-4583-a5f6-541f30f3453f","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":50,"box":{"x":68,"y":113,"width":825,"height":11}},{"id":"c60e1f2a-8831-41eb-97f8-6b661ee2cf09","block_type":"box","text":"upon which the Fund’s rate of return is based.","page_number":50,"box":{"x":69,"y":128,"width":328,"height":11}},{"id":"17d6b8aa-8076-4a00-99e4-9a43c15d0822","block_type":"box","text":"The costs attributable to investing in the junk bond markets are usually higher for several reasons, such as","page_number":50,"box":{"x":101,"y":150,"width":764,"height":12}},{"id":"8b5b6f5f-b1aa-40f1-ae93-c76f6b71ceae","block_type":"box","text":"higher investment research costs and higher commission costs.","page_number":50,"box":{"x":69,"y":166,"width":455,"height":11}},{"id":"2e36f683-47c8-4d64-b10f-168542f55f57","block_type":"box","text":"Mezzanine Investments.","page_number":50,"box":{"x":102,"y":188,"width":170,"height":9}},{"id":"f6ded71c-7ed4-4a6f-bb55-1766438445d0","block_type":"box","text":"Certain Funds, consistent with their restrictions on investing in securities of a specific","page_number":50,"box":{"x":279,"y":188,"width":612,"height":12}},{"id":"f6670df1-5ac8-478e-957e-705fe3872940","block_type":"box","text":"credit quality, may invest in certain high yield securities known as mezzanine investments, which are subordinated","page_number":50,"box":{"x":69,"y":204,"width":813,"height":11}},{"id":"1209376d-fb9d-47e9-90f5-ae873bc166bd","block_type":"box","text":"debt securities which are generally issued in private placements in connection with an equity security (","page_number":50,"box":{"x":69,"y":219,"width":729,"height":11}},{"id":"55e9862e-67fb-42ad-9a23-334fdb1245ad","block_type":"box","text":"e.g.","page_number":50,"box":{"x":800,"y":220,"width":24,"height":10}},{"id":"5923de87-204d-442b-964c-bff51b9e1e50","block_type":"box","text":", with","page_number":50,"box":{"x":827,"y":219,"width":36,"height":10}},{"id":"ac988c7d-8e26-44d1-8ecf-7d3281bdb929","block_type":"box","text":"attached warrants). Such mezzanine investments may be issued with or without registration rights. Similar to other","page_number":50,"box":{"x":69,"y":234,"width":818,"height":11}},{"id":"ec5538ad-fa30-4233-8177-c6126465c759","block_type":"box","text":"high yield securities, maturities of mezzanine investments are typically seven to ten years, but the expected average","page_number":50,"box":{"x":69,"y":249,"width":827,"height":11}},{"id":"8cc67441-f7ff-42f5-8cba-88a34741c736","block_type":"box","text":"life is significantly shorter at three to five years. Mezzanine investments are usually unsecured and subordinate to","page_number":50,"box":{"x":70,"y":264,"width":813,"height":11}},{"id":"1472b3fd-0053-47b6-ab73-22488475b537","block_type":"box","text":"other obligations of the issuer.","page_number":50,"box":{"x":69,"y":279,"width":216,"height":11}},{"id":"c918a2d4-1996-4300-af01-8bec7fff84c8","block_type":"box","text":"Pay-in-kind Bonds.","page_number":50,"box":{"x":102,"y":302,"width":127,"height":11}},{"id":"90c862b5-d71d-4816-88ec-72b7a738738f","block_type":"box","text":"Certain Funds may invest in pay-in-kind, or PIK, bonds. PIK bonds are bonds which pay","page_number":50,"box":{"x":236,"y":302,"width":615,"height":11}},{"id":"878c6b1c-008f-4e40-8245-a3a7fdb40e61","block_type":"box","text":"interest through the issuance of additional debt or equity securities. Similar to zero coupon obligations, pay-in-kind","page_number":50,"box":{"x":70,"y":317,"width":813,"height":11}},{"id":"44750d32-f105-4543-9796-495932894b61","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":50,"box":{"x":69,"y":332,"width":820,"height":11}},{"id":"a497789e-5298-41d7-9257-cc492de9d220","block_type":"box","text":"unless a portion of such securities is sold and, if the issuer defaults, a Fund may obtain no return at all on its","page_number":50,"box":{"x":69,"y":347,"width":784,"height":11}},{"id":"414a2ce8-de9c-45da-966f-04f924ce1079","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":50,"box":{"x":70,"y":362,"width":783,"height":11}},{"id":"d26c7a99-f124-4cf8-b6fb-646d31af72a4","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":50,"box":{"x":68,"y":377,"width":790,"height":11}},{"id":"6346c8a4-d9ee-4954-8c27-4f6a85d2129f","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":50,"box":{"x":68,"y":392,"width":831,"height":12}},{"id":"c7340135-1cd8-4465-962a-dd04a37eef1d","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":50,"box":{"x":69,"y":407,"width":830,"height":12}},{"id":"a5e1cbd7-c98b-4213-8676-eae41fc29512","block_type":"box","text":"federal income and excise taxes, each Fund may be required to distribute income accrued with respect to these","page_number":50,"box":{"x":68,"y":423,"width":798,"height":11}},{"id":"bc9e0ef6-f7e1-4909-8bf2-9c51f28af6e6","block_type":"box","text":"securities and may have to dispose of portfolio securities under disadvantageous circumstances in order to generate","page_number":50,"box":{"x":69,"y":438,"width":835,"height":11}},{"id":"95cba0a0-dbe3-4c29-8471-15f89b66706f","block_type":"box","text":"cash to satisfy these distribution requirements.","page_number":50,"box":{"x":69,"y":453,"width":336,"height":11}},{"id":"d10ec5a3-ffbb-4c2f-a344-0c3ac3154f49","block_type":"box","text":"Supranational Entities.","page_number":50,"box":{"x":102,"y":476,"width":160,"height":10}},{"id":"e2e6412a-5d70-482e-a52d-96dacb7ac338","block_type":"box","text":"A Fund may invest in debt securities of supranational entities. Examples of such entities","page_number":50,"box":{"x":268,"y":475,"width":629,"height":12}},{"id":"aede1e8f-44ea-4dd2-b32f-b03ec616ce12","block_type":"box","text":"include the International Bank for Reconstruction and Development (the World Bank), the European Steel and Coal","page_number":50,"box":{"x":70,"y":491,"width":814,"height":11}},{"id":"0cc2bb69-65e5-41ae-bc6b-49d8fe9e5187","block_type":"box","text":"Community, the Asian Development Bank and the Inter-American Development Bank. The government members, or","page_number":50,"box":{"x":69,"y":506,"width":817,"height":11}},{"id":"a651e32e-169d-4fa1-9d8c-cc267d954b56","block_type":"box","text":"“stockholders,” usually make initial capital contributions to the supranational entity and in many cases are","page_number":50,"box":{"x":70,"y":521,"width":759,"height":11}},{"id":"23c34357-e80b-467d-982b-76dc6c60d607","block_type":"box","text":"committed to make additional capital contributions if the supranational entity is unable to repay its borrowings. There","page_number":50,"box":{"x":69,"y":536,"width":836,"height":11}},{"id":"4d2dca41-490b-47ea-a3ed-0d3907adeae7","block_type":"box","text":"is no guarantee that one or more stockholders of a supranational entity will continue to make any necessary","page_number":50,"box":{"x":70,"y":551,"width":772,"height":11}},{"id":"e1ea16ad-1d76-4430-bcba-926d5e8c41e2","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":50,"box":{"x":69,"y":566,"width":830,"height":11}},{"id":"d03eeb0c-44c1-4256-8b8e-eb59b128bf9e","block_type":"box","text":"principal on its debt securities, and a Fund may lose money on such investments.","page_number":50,"box":{"x":70,"y":582,"width":580,"height":10}},{"id":"bc01dba7-68ac-4799-ae98-3cfd86ef44b9","block_type":"box","text":"Depositary Receipts (ADRs, EDRs and GDRs).","page_number":50,"box":{"x":102,"y":604,"width":334,"height":11}},{"id":"ee684641-6795-4f51-a17d-85ae6d93e8c8","block_type":"box","text":"Certain Funds may invest in the securities of foreign issuers in","page_number":50,"box":{"x":442,"y":604,"width":446,"height":11}},{"id":"b2c392e2-7e89-44d9-a420-35bea7fa3976","block_type":"box","text":"the form of Depositary Receipts or other securities convertible into securities of foreign issuers. Depositary Receipts","page_number":50,"box":{"x":68,"y":619,"width":835,"height":11}},{"id":"bfbf39e8-9930-4c50-af66-eafe09acb168","block_type":"box","text":"may not necessarily be denominated in the same currency as the underlying securities into which they may be","page_number":50,"box":{"x":69,"y":634,"width":784,"height":12}},{"id":"add0c171-6db7-4da9-871d-1e8c7ad02b1c","block_type":"box","text":"converted. The Fund may invest in both sponsored and unsponsored American Depositary Receipts (“ADRs”),","page_number":50,"box":{"x":69,"y":650,"width":781,"height":11}},{"id":"861dc775-b153-4143-859d-aef3c7957301","block_type":"box","text":"European Depositary Receipts (“EDRs”), Global Depositary Receipts (“GDRs”) and other similar global instruments.","page_number":50,"box":{"x":70,"y":665,"width":823,"height":11}},{"id":"82426336-917c-4941-9179-cc758bf2d9db","block_type":"box","text":"ADRs typically are issued by an American bank or trust company and evidence ownership of underlying securities","page_number":50,"box":{"x":68,"y":680,"width":804,"height":11}},{"id":"55a992fb-2063-4374-8e1a-5c93d6ed51f4","block_type":"box","text":"issued by a foreign corporation. EDRs, which are sometimes referred to as Continental Depositary Receipts, are","page_number":50,"box":{"x":70,"y":695,"width":799,"height":11}},{"id":"978a3a45-cc23-47fc-892a-492c105369ba","block_type":"box","text":"receipts issued in Europe, typically by foreign banks and trust companies, that evidence ownership of either foreign","page_number":50,"box":{"x":69,"y":710,"width":821,"height":11}},{"id":"2f33067e-14a7-41b8-a1fc-033571432f71","block_type":"box","text":"or domestic underlying securities. GDRs are depositary receipts structured like global debt issues to facilitate trading","page_number":50,"box":{"x":69,"y":725,"width":837,"height":11}},{"id":"4b08b37d-00d7-44e4-be63-a4c92082271d","block_type":"box","text":"on an international basis. In addition to investment risks associated with the underlying issuer, Depositary Receipts","page_number":50,"box":{"x":69,"y":740,"width":825,"height":11}},{"id":"07f97c18-483d-40d2-a441-2b887922fb05","block_type":"box","text":"expose a Fund to additional risks associated with the non-uniform terms that apply to Depositary Receipt programs,","page_number":50,"box":{"x":69,"y":755,"width":825,"height":11}},{"id":"4070bea3-5d54-4d24-aefe-1128c4171d00","block_type":"box","text":"credit exposure to the depository bank and to the sponsors and other parties with whom the depository bank","page_number":50,"box":{"x":69,"y":771,"width":780,"height":10}},{"id":"4d113343-7a34-47b4-8475-20877cd19b2c","block_type":"box","text":"establishes the programs, currency risk and the risk of an illiquid market for Depositary Receipts. Unsponsored ADR,","page_number":50,"box":{"x":69,"y":785,"width":833,"height":12}},{"id":"e6e4a22b-3c98-4995-a766-045b4dc1a855","block_type":"box","text":"EDR and GDR programs are organized independently and without the cooperation of the issuer of the underlying","page_number":50,"box":{"x":70,"y":801,"width":796,"height":11}},{"id":"cc204f5a-32e6-47d9-9463-745db78426d6","block_type":"box","text":"securities. Unsponsored programs generally expose investors to greater risks than sponsored programs and do not","page_number":50,"box":{"x":69,"y":816,"width":822,"height":11}},{"id":"6d3335dd-1635-41ba-bea3-01baee04ab5c","block_type":"box","text":"provide holders with many of the shareholder benefits that come from investing in a sponsored Depositary Receipt.","page_number":50,"box":{"x":70,"y":831,"width":820,"height":11}},{"id":"f8772ec9-f3bb-43cd-b134-7a8e82d8a8cf","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":50,"box":{"x":68,"y":846,"width":827,"height":11}},{"id":"98c3fe75-dd34-4902-8d97-8ccc2aca4f6a","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":50,"box":{"x":70,"y":861,"width":825,"height":11}},{"id":"2add8264-1b8e-422e-9499-1856b3684676","block_type":"box","text":"issuer. Depositary Receipts are generally subject to the same risks as the foreign securities that they evidence or","page_number":50,"box":{"x":70,"y":876,"width":810,"height":11}},{"id":"097acbb3-0b39-4407-a55e-5b3ae032e532","block_type":"box","text":"into which they may be converted. Investments in ADRs, EDRs and GDRs present additional investment","page_number":50,"box":{"x":70,"y":891,"width":737,"height":11}},{"id":"7f342129-3922-4d9f-ab50-5103a43184c6","block_type":"box","text":"considerations as described under “Foreign Investment Risks.”","page_number":50,"box":{"x":69,"y":907,"width":449,"height":11}},{"id":"d38706c8-9aa0-48da-be6e-63eec7046146","block_type":"box","text":"II-12","page_number":50,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"8d9e3641-3354-4abd-9fe6-3ae11f27e416","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":50,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"54987c3c-29c6-4f73-bf5f-e96f1ffb8933","block_type":"box","text":"Derivatives.","page_number":51,"box":{"x":102,"y":45,"width":84,"height":9}},{"id":"a9afe4bf-39f9-41fe-a4ab-4a976ed04c0a","block_type":"box","text":"General.","page_number":51,"box":{"x":102,"y":67,"width":58,"height":9}},{"id":"5902cd93-d9b5-4d68-b586-9d338d7e78c1","block_type":"box","text":"Each Fund may use instruments referred to as derivatives, which are financial instruments that derive","page_number":51,"box":{"x":167,"y":67,"width":725,"height":11}},{"id":"3cb7033c-9e17-4545-bdd0-2c6b64580365","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":51,"box":{"x":68,"y":82,"width":836,"height":12}},{"id":"9f7676ec-1bfb-43bf-847a-48b02ef2180b","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":51,"box":{"x":70,"y":98,"width":829,"height":11}},{"id":"0c055836-1aca-4eb5-be90-1d0bb8964185","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":51,"box":{"x":70,"y":113,"width":830,"height":11}},{"id":"122440a3-a612-4ea3-be46-15ed13172d43","block_type":"box","text":"efficiently than with other transactions. Certain Funds may use derivatives to maintain a portion of their long and","page_number":51,"box":{"x":69,"y":128,"width":804,"height":11}},{"id":"25b03fb5-1a90-44e2-a7bd-c6a846fba0dc","block_type":"box","text":"short positions. Unless otherwise permitted, no Fund may use derivatives to gain exposure to an asset or asset","page_number":51,"box":{"x":69,"y":143,"width":800,"height":11}},{"id":"55a54865-9885-42bb-8406-300d34b3d353","block_type":"box","text":"class it is prohibited by its investment restrictions from purchasing directly. As described below, derivatives can be","page_number":51,"box":{"x":69,"y":158,"width":816,"height":11}},{"id":"c1d14096-e5ba-43ec-9c35-a50ad56b504a","block_type":"box","text":"used for hedging or speculative purposes. Funds will engage in transaction-level payment netting,","page_number":51,"box":{"x":69,"y":173,"width":691,"height":11}},{"id":"d4270c13-3e1b-422d-8433-e0caf10edef5","block_type":"box","text":"i.e.","page_number":51,"box":{"x":768,"y":173,"width":20,"height":9}},{"id":"9916c697-045d-4428-8398-df342165fa92","block_type":"box","text":", the payment","page_number":51,"box":{"x":791,"y":173,"width":96,"height":11}},{"id":"ab301fea-18f5-4426-bcb8-70e21dfa1b56","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":51,"box":{"x":69,"y":188,"width":839,"height":12}},{"id":"329fb820-03ee-4edf-a0e7-5675801d39d5","block_type":"box","text":"be, only the net amount of the two payment streams.","page_number":51,"box":{"x":69,"y":203,"width":378,"height":12}},{"id":"6df19818-cf59-4d15-90aa-14d55aab159b","block_type":"box","text":"Hedging.","page_number":51,"box":{"x":102,"y":226,"width":60,"height":11}},{"id":"fbb6f87b-8acc-475e-8680-d6dfa60f86e6","block_type":"box","text":"Each Fund may use derivatives for hedging purposes, in which a derivative is used to offset the risks","page_number":51,"box":{"x":169,"y":226,"width":717,"height":11}},{"id":"6c152a0d-0476-4d81-a53e-3fc4cd58f725","block_type":"box","text":"associated with other Fund holdings. Losses on other investments may be substantially reduced by gains on a","page_number":51,"box":{"x":69,"y":241,"width":786,"height":11}},{"id":"af3d32df-5651-46bb-ba5f-ed8d57961021","block_type":"box","text":"derivative that reacts in an opposite manner to market movements. Although hedging may reduce losses, it may also","page_number":51,"box":{"x":69,"y":257,"width":834,"height":11}},{"id":"b4343dfb-caac-4fc1-9b04-7572e5caa4e2","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":51,"box":{"x":69,"y":271,"width":834,"height":12}},{"id":"08acbfd3-f450-4a22-a15b-d36c8e038c12","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":51,"box":{"x":70,"y":286,"width":797,"height":12}},{"id":"5d0cd0f9-8557-4e62-850c-8b5103ee563c","block_type":"box","text":"correlation risk,","page_number":51,"box":{"x":69,"y":302,"width":109,"height":10}},{"id":"ea70a76c-9ec6-4972-b5ff-27473b88f0c0","block_type":"box","text":"i.e.","page_number":51,"box":{"x":186,"y":302,"width":20,"height":9}},{"id":"53fa5481-a0d2-45f4-b91a-53825b9e0281","block_type":"box","text":", the risk that changes in the value of the derivative will not match those of the holdings being","page_number":51,"box":{"x":209,"y":302,"width":669,"height":11}},{"id":"947c0244-d443-49f0-b28e-731fb1b50ce8","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":51,"box":{"x":69,"y":317,"width":797,"height":11}},{"id":"382ab324-3d15-43e8-b1d3-fe3022d3a661","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":51,"box":{"x":69,"y":332,"width":835,"height":11}},{"id":"5eac7d42-f681-4915-83a6-bf743f0d53f7","block_type":"box","text":"be effective. No Fund is required to use derivatives to hedge.","page_number":51,"box":{"x":69,"y":347,"width":434,"height":11}},{"id":"f401ecec-38ac-4575-a605-59dd5e1dc7b1","block_type":"box","text":"Speculation.","page_number":51,"box":{"x":102,"y":370,"width":86,"height":11}},{"id":"1a1235b8-79d8-4bb4-a90f-523c93df8f9a","block_type":"box","text":"Certain Funds may also use derivatives for speculative purposes to seek to enhance returns. The","page_number":51,"box":{"x":195,"y":370,"width":694,"height":11}},{"id":"d3722a7a-96e5-48ae-984e-9ea5ad5cf574","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":51,"box":{"x":69,"y":385,"width":831,"height":11}},{"id":"3c6ecf5b-b2c6-4bcf-a00f-4558cae100f7","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":51,"box":{"x":70,"y":400,"width":824,"height":11}},{"id":"9a40c608-947c-4bf7-b466-25bb0f0fb130","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":51,"box":{"x":69,"y":415,"width":831,"height":11}},{"id":"e0f6318b-d7f7-4cee-99d6-c91c2ffe4015","block_type":"box","text":"in certain cases may be unlimited.","page_number":51,"box":{"x":70,"y":430,"width":243,"height":11}},{"id":"55cc7205-0d82-4b77-b12e-b62b20c32e1e","block_type":"box","text":"Regulation of Derivatives.","page_number":51,"box":{"x":102,"y":453,"width":180,"height":11}},{"id":"aebacdd3-6557-4c52-ac2f-e8c27ec2db6e","block_type":"box","text":"Rule 18f-4 Under the Investment Company Act.","page_number":51,"box":{"x":102,"y":475,"width":333,"height":12}},{"id":"529e56d5-efb5-4ece-8c79-85f5a4495b9b","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to","page_number":51,"box":{"x":442,"y":475,"width":458,"height":12}},{"id":"0895ba03-2e04-4c95-a812-90bf54ccc104","block_type":"box","text":"enter into Derivatives Transactions (as defined below) and certain other transactions notwithstanding the restrictions","page_number":51,"box":{"x":69,"y":491,"width":833,"height":11}},{"id":"afd0fdf9-6813-4dcd-ae22-dbddefd86abd","block_type":"box","text":"on the issuance of “senior securities” under Section 18 of the Investment Company Act. Section 18 of the","page_number":51,"box":{"x":69,"y":506,"width":759,"height":11}},{"id":"03f71f54-2162-4cc8-8d7c-b8caa69e3088","block_type":"box","text":"Investment Company Act, among other things, prohibits open-end funds, including the Funds, from issuing or selling","page_number":51,"box":{"x":70,"y":521,"width":825,"height":11}},{"id":"2d5a2c9a-6466-4934-ab29-f7a8fefb0864","block_type":"box","text":"any “senior security,” other than borrowing from a bank (subject to a requirement to maintain 300% “asset","page_number":51,"box":{"x":69,"y":536,"width":763,"height":11}},{"id":"7b35834b-038a-4389-9e3d-b7e747c80895","block_type":"box","text":"coverage”).","page_number":51,"box":{"x":69,"y":551,"width":79,"height":11}},{"id":"94c60e86-f4f0-49c2-b9a5-23b641fd5f62","block_type":"box","text":"Under Rule 18f-4, “Derivatives Transactions” include the following: (1) any swap, security-based swap (including","page_number":51,"box":{"x":102,"y":574,"width":796,"height":11}},{"id":"07c7ee54-a9db-464e-80b1-032de3f67354","block_type":"box","text":"a contract for differences), futures contract, forward contract, option (excluding purchased options), any combination","page_number":51,"box":{"x":69,"y":589,"width":832,"height":11}},{"id":"82bc826e-9c3f-4c73-a752-a3d2780845cb","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":51,"box":{"x":69,"y":604,"width":840,"height":11}},{"id":"aade662c-8816-44a3-8ea4-fb582978ff4e","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":51,"box":{"x":69,"y":619,"width":801,"height":11}},{"id":"4fb20e33-079c-4a29-92fa-b7e94f2a4eea","block_type":"box","text":"settlement payment or otherwise; (2) any short sale borrowing; (3) reverse repurchase agreements and similar","page_number":51,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"7e99a981-5e09-46e2-8c2d-903dd272e7be","block_type":"box","text":"financing transactions (","page_number":51,"box":{"x":68,"y":649,"width":166,"height":12}},{"id":"c6d05ffb-dc8e-4070-a319-ad9ae251da1c","block_type":"box","text":"e.g.","page_number":51,"box":{"x":236,"y":651,"width":25,"height":10}},{"id":"3df7afc5-fd0e-455a-bb4d-7e2cf38523e4","block_type":"box","text":", recourse and non-recourse tender option bonds, and borrowed bonds), if a Fund elects to","page_number":51,"box":{"x":263,"y":649,"width":646,"height":11}},{"id":"7756b53b-eb0c-4591-86c9-230524b1f0c8","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":51,"box":{"x":68,"y":664,"width":825,"height":12}},{"id":"7620ef7d-49a0-438a-a150-0bb442600c71","block_type":"box","text":"securities (","page_number":51,"box":{"x":69,"y":680,"width":78,"height":11}},{"id":"75076127-078d-4af6-a268-219df76ad942","block_type":"box","text":"e.g.","page_number":51,"box":{"x":148,"y":681,"width":25,"height":10}},{"id":"309fd191-5ae4-478c-b0e4-f5a263d3e24e","block_type":"box","text":", firm and standby commitments, including to-be-announced (“TBA”) commitments, and dollar rolls)","page_number":51,"box":{"x":176,"y":680,"width":704,"height":11}},{"id":"f9c1b381-61fe-4863-908f-e0f56b5fcc89","block_type":"box","text":"and non-standard settlement cycle securities, unless such transactions meet the Delayed-Settlement Securities","page_number":51,"box":{"x":69,"y":695,"width":796,"height":11}},{"id":"10114cc5-db5b-400d-96e3-ed62c9942f9c","block_type":"box","text":"Provision (as defined below under “—When-Issued Securities, Delayed Delivery Securities and Forward","page_number":51,"box":{"x":69,"y":710,"width":732,"height":11}},{"id":"5d44ab1b-2411-488f-b60b-47c75367057b","block_type":"box","text":"Commitments”).","page_number":51,"box":{"x":69,"y":725,"width":115,"height":11}},{"id":"b58cde4e-4c97-4c0d-b54d-71c399b0ea55","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":51,"box":{"x":102,"y":748,"width":805,"height":11}},{"id":"90d5b337-9b3b-489d-9f17-61dc411dcea6","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":51,"box":{"x":70,"y":763,"width":832,"height":11}},{"id":"a19d1256-04d7-44ce-a23e-776b71a358f3","block_type":"box","text":"implement a comprehensive written derivatives risk management program (“DRMP”) and comply with a relative or","page_number":51,"box":{"x":70,"y":778,"width":808,"height":11}},{"id":"b064eb8a-9eda-431d-b9ef-8950bd14f026","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":51,"box":{"x":69,"y":793,"width":780,"height":11}},{"id":"986fe0a6-09cd-42ff-9d3c-20f409215798","block_type":"box","text":"“derivatives risk manager,” who is appointed by the Fund’s Board, including a majority of the independent Directors,","page_number":51,"box":{"x":70,"y":808,"width":824,"height":11}},{"id":"4452f106-8662-499c-896a-3f6f9e8b9f1d","block_type":"box","text":"and periodically reviews the DRMP and reports to the Fund’s Board.","page_number":51,"box":{"x":69,"y":823,"width":482,"height":11}},{"id":"7280212e-b1e0-4538-b7f7-f72f718c81ef","block_type":"box","text":"Rule 18f-4 provides an exception from the DRMP, VaR limit and certain other requirements if a Fund’s","page_number":51,"box":{"x":102,"y":846,"width":724,"height":11}},{"id":"d9edb465-9061-469d-b41f-ab1f7e0fcdb5","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":51,"box":{"x":70,"y":861,"width":830,"height":11}},{"id":"86d43a48-19c6-42a0-a4e1-3657e7f9f250","block_type":"box","text":"adopts and implements written policies and procedures reasonably designed to manage its derivatives risks (the","page_number":51,"box":{"x":69,"y":876,"width":803,"height":11}},{"id":"719b6046-186d-4f92-972b-4e064ef293eb","block_type":"box","text":"“Limited Derivatives User Exception”).","page_number":51,"box":{"x":70,"y":891,"width":268,"height":11}},{"id":"400e4e64-2f98-4485-8d3e-7488d41816e2","block_type":"box","text":"II-13","page_number":51,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"873dfac9-8e83-420d-b16a-6a8c7b317c1f","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":51,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"531fccfa-6ced-40a9-a4cc-73bdf051903a","block_type":"box","text":"Dodd-Frank Regulations.","page_number":52,"box":{"x":102,"y":45,"width":171,"height":11}},{"id":"2deded9e-de59-4b8e-acc4-056e73f8a489","block_type":"box","text":"The Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”),","page_number":52,"box":{"x":279,"y":45,"width":575,"height":11}},{"id":"6b7756bf-7526-481d-9fcf-cf2158092c6f","block_type":"box","text":"enacted in July 2010, includes provisions that comprehensively regulate the over-the-counter (“OTC”) derivatives","page_number":52,"box":{"x":69,"y":60,"width":800,"height":11}},{"id":"95d4d0f8-079b-4e22-8274-56ac96dab8d5","block_type":"box","text":"markets for the first time. While the Commodity Futures Trading Commission (“CFTC”) and other U.S. regulators have","page_number":52,"box":{"x":69,"y":75,"width":834,"height":11}},{"id":"1d456d58-4e76-4db1-8763-0610fa077576","block_type":"box","text":"adopted many of the required Dodd-Frank regulations, certain regulations have only recently become effective and","page_number":52,"box":{"x":69,"y":90,"width":813,"height":11}},{"id":"a0f7df36-9218-45f4-a740-60eb55238673","block_type":"box","text":"other regulations remain to be adopted. The full impact of Dodd-Frank on the Funds remains uncertain.","page_number":52,"box":{"x":69,"y":105,"width":733,"height":11}},{"id":"ec9aca40-a987-48c4-94d1-3e379d3bc214","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":52,"box":{"x":102,"y":128,"width":789,"height":11}},{"id":"8a990d88-0d29-4540-8cd7-af6913380310","block_type":"box","text":"“security-based swap dealers”. Registered swap dealers and security-based swap dealers are subject to various","page_number":52,"box":{"x":70,"y":143,"width":797,"height":11}},{"id":"628ac166-f942-4947-8cda-2374669e607e","block_type":"box","text":"regulatory requirements, including, but not limited to, margin, recordkeeping, reporting, transparency, position limits,","page_number":52,"box":{"x":69,"y":158,"width":833,"height":11}},{"id":"580b3ab2-7d15-4538-8b92-84d94a2fe292","block_type":"box","text":"limitations on conflicts of interest, business conduct standards, minimum capital requirements and other regulatory","page_number":52,"box":{"x":70,"y":173,"width":826,"height":11}},{"id":"0ddb1f32-a1c3-463b-8929-be476a9e7e59","block_type":"box","text":"requirements, which indirectly impact the Funds that enter into transactions with them.","page_number":52,"box":{"x":69,"y":188,"width":618,"height":11}},{"id":"f3e1ab08-2f5b-4193-925f-567d49f43f9c","block_type":"box","text":"The CFTC requires that certain interest rate swaps and certain credit default swaps must be executed in","page_number":52,"box":{"x":101,"y":211,"width":745,"height":11}},{"id":"6d5449d3-1e2a-423f-8fff-3e18ba5510e7","block_type":"box","text":"regulated markets and be submitted for clearing to regulated clearinghouses. The SEC is also expected to impose","page_number":52,"box":{"x":69,"y":226,"width":813,"height":11}},{"id":"e3fd0259-32c4-4409-a999-a921cbe875be","block_type":"box","text":"similar requirements on certain security-based derivatives in the future. OTC derivatives trades submitted for clearing","page_number":52,"box":{"x":69,"y":241,"width":835,"height":11}},{"id":"71296949-16fa-4012-ab93-beb0ceccd8b4","block_type":"box","text":"are subject to minimum initial and variation margin requirements set by the relevant clearinghouse, as well as margin","page_number":52,"box":{"x":69,"y":257,"width":837,"height":11}},{"id":"9a7d787a-bf36-47de-8c4d-47dd2949f9c5","block_type":"box","text":"requirements mandated by the CFTC, SEC and/or federal prudential regulators. In addition, futures commission","page_number":52,"box":{"x":69,"y":271,"width":794,"height":12}},{"id":"6367ebfe-6662-4f7d-bfde-d4705ff965ca","block_type":"box","text":"merchants (“FCMs”), who act as clearing members on behalf of customers for cleared OTC derivatives and futures","page_number":52,"box":{"x":69,"y":286,"width":815,"height":12}},{"id":"9e81bb27-de7d-4e56-beaf-042dc4c85ea6","block_type":"box","text":"contracts, also have discretion to increase a Fund’s margin requirements for these transactions beyond any","page_number":52,"box":{"x":69,"y":302,"width":770,"height":11}},{"id":"8862a526-89ec-4d88-9c29-5437ed508b64","block_type":"box","text":"regulatory and clearinghouse minimums subject to any restrictions on such discretion in the documentation between","page_number":52,"box":{"x":69,"y":317,"width":831,"height":11}},{"id":"afc8d0be-5e76-49bc-8e5d-a45c2335d194","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":52,"box":{"x":68,"y":332,"width":804,"height":11}},{"id":"173461a3-bed2-48cb-b33c-658795a98b6c","block_type":"box","text":"enter into highly tailored or customized transactions, potentially rendering certain investment strategies impossible or","page_number":52,"box":{"x":69,"y":347,"width":839,"height":11}},{"id":"8b08bb6d-ffe8-4ea9-b8a8-a1b98cb06752","block_type":"box","text":"not economically feasible. If a Fund decides to execute and clear cleared OTC derivatives and/or futures contracts","page_number":52,"box":{"x":69,"y":362,"width":814,"height":11}},{"id":"94dc74aa-54ab-455e-9b05-0886d7f919c4","block_type":"box","text":"through execution facilities, exchanges or clearinghouses, either indirectly through an executing broker, clearing","page_number":52,"box":{"x":68,"y":377,"width":796,"height":12}},{"id":"32abe481-ab37-4dd5-984c-dd23e8ada115","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":52,"box":{"x":69,"y":392,"width":793,"height":12}},{"id":"e33a8dd8-c789-44fe-8d0b-c66a46855565","block_type":"box","text":"exchange or clearinghouse and other applicable law.","page_number":52,"box":{"x":69,"y":408,"width":370,"height":11}},{"id":"26c62eba-6ad4-4e0f-94f4-24ccebd512e1","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":52,"box":{"x":101,"y":430,"width":766,"height":11}},{"id":"18daffb3-7309-4a9d-aa5d-7b849e822f45","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":52,"box":{"x":69,"y":445,"width":826,"height":12}},{"id":"8f58608a-5cf7-4a63-8baf-237e06e63887","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":52,"box":{"x":69,"y":460,"width":825,"height":12}},{"id":"ac9bf6d8-acc5-48af-82ef-d620f3576ca2","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":52,"box":{"x":70,"y":475,"width":791,"height":12}},{"id":"3f1c0806-065e-437c-8ef6-ff281c4aae62","block_type":"box","text":"obligations to the clearinghouse simultaneously with a customer’s failure to meet its obligations to the clearing","page_number":52,"box":{"x":69,"y":491,"width":793,"height":11}},{"id":"179146b5-5684-46bc-ac29-beed299f2105","block_type":"box","text":"member.","page_number":52,"box":{"x":69,"y":506,"width":60,"height":9}},{"id":"6790df42-8bc6-40ab-bc05-36cfb25ed56a","block_type":"box","text":"Clearing member FCMs are required to post initial margin to the clearinghouses through which they clear their","page_number":52,"box":{"x":102,"y":529,"width":782,"height":11}},{"id":"167c7123-3a4d-48f4-a792-6c6126773e51","block_type":"box","text":"customers’ cleared OTC derivatives and futures contracts, instead of using such initial margin in their businesses, as","page_number":52,"box":{"x":69,"y":543,"width":837,"height":12}},{"id":"1336fa10-0ec4-453b-978c-707153d9f08d","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":52,"box":{"x":68,"y":559,"width":811,"height":11}},{"id":"8b80d955-8fb4-4269-9e81-8ff4853e44ec","block_type":"box","text":"margin in excess of clearinghouse requirements, and certain clearinghouses may share a portion of their earnings on","page_number":52,"box":{"x":69,"y":574,"width":838,"height":11}},{"id":"4905dc08-bf19-4231-8680-60b2f0ff5485","block_type":"box","text":"initial margin with their clearing members, some portion of the initial margin that is passed through to the","page_number":52,"box":{"x":70,"y":589,"width":754,"height":11}},{"id":"03fac95c-563b-45c3-b9b4-bc75e8715334","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":52,"box":{"x":69,"y":604,"width":815,"height":11}},{"id":"5d5abe3f-4adf-4631-866f-19499c2cdff1","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":52,"box":{"x":70,"y":619,"width":817,"height":11}},{"id":"8314aba0-9917-4089-b5ce-87789b892d83","block_type":"box","text":"FCMs to charge higher fees, or provide less favorable pricing on cleared OTC derivatives than swap dealers will","page_number":52,"box":{"x":70,"y":634,"width":788,"height":12}},{"id":"41dd72af-76b3-437b-baf6-b683dc7d4ee2","block_type":"box","text":"provide for non-cleared OTC derivatives. Furthermore, customers, including the Funds, are subject to additional fees","page_number":52,"box":{"x":70,"y":649,"width":825,"height":12}},{"id":"f597f84f-c046-4685-9a79-499397a90701","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":52,"box":{"x":70,"y":664,"width":829,"height":12}},{"id":"66d30ecd-94cb-4947-b56d-844fbf2424c8","block_type":"box","text":"to trading non-cleared OTC derivatives bilaterally.","page_number":52,"box":{"x":68,"y":680,"width":346,"height":11}},{"id":"d0d8a0bf-e3f1-42e8-bc05-20643ed1908e","block_type":"box","text":"With respect to uncleared swaps, registered swap dealers and security-based swap dealers are required to","page_number":52,"box":{"x":101,"y":703,"width":762,"height":11}},{"id":"0c856a92-30f0-4e83-a363-1ae1bbef2f08","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":52,"box":{"x":69,"y":718,"width":820,"height":11}},{"id":"2531c9ee-484a-4acb-9fe2-b797711e0f4e","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":52,"box":{"x":69,"y":732,"width":816,"height":12}},{"id":"feeac32b-69e7-4b37-a4d8-2c91a43357c4","block_type":"box","text":"subject to applicable regulatory haircuts and other restrictions. Shares of investment companies (other than certain","page_number":52,"box":{"x":69,"y":748,"width":825,"height":11}},{"id":"8f53d65a-9fc4-4f31-aaf6-df87f4900ded","block_type":"box","text":"money market funds) may not be posted as collateral under applicable regulations.","page_number":52,"box":{"x":69,"y":763,"width":590,"height":11}},{"id":"c462b2a4-9d26-4124-a48f-f6b0e3f89910","block_type":"box","text":"The CFTC, certain foreign regulators, and many futures exchanges have established (and continue to evaluate","page_number":52,"box":{"x":101,"y":785,"width":783,"height":12}},{"id":"23fdf669-4682-4593-a5ca-3be32710fdc3","block_type":"box","text":"and monitor) speculative position limits (“position limits”) on the maximum speculative position which any person, or","page_number":52,"box":{"x":69,"y":801,"width":833,"height":11}},{"id":"c110ad89-f5b8-4755-9885-fa2fa14bad4b","block_type":"box","text":"group of persons acting in concert, may hold or control in particular contracts. In addition, U.S. federal position limits","page_number":52,"box":{"x":68,"y":816,"width":837,"height":11}},{"id":"f3b947b1-6410-42e6-94ea-bd648e7127f0","block_type":"box","text":"apply to swaps that are economically equivalent to futures contracts on certain agricultural, metals and energy","page_number":52,"box":{"x":69,"y":831,"width":789,"height":11}},{"id":"290b7290-e58a-40e7-b572-c3b3bad29fa6","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":52,"box":{"x":69,"y":846,"width":818,"height":11}},{"id":"c212939b-278b-4f20-8ba9-f5f738c2e1ab","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":52,"box":{"x":69,"y":861,"width":801,"height":11}},{"id":"5a326764-21a2-4b70-ad22-2b02dd857f03","block_type":"box","text":"applicable position limits, it is possible that different clients managed by the Manager and its affiliates may be","page_number":52,"box":{"x":69,"y":876,"width":791,"height":11}},{"id":"cecf035a-552d-44ea-a607-521f193645e4","block_type":"box","text":"aggregated for this purpose. Therefore, the trading decisions of the Manager may have to be modified and positions","page_number":52,"box":{"x":69,"y":891,"width":827,"height":12}},{"id":"8106edf6-d185-485f-ac1b-b86904fa3d19","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":52,"box":{"x":69,"y":906,"width":805,"height":12}},{"id":"bc743bfc-21d9-4db0-a6f0-07ef6ba0b3a3","block_type":"box","text":"II-14","page_number":52,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"5168adcc-6f37-4bf0-b234-cdcf658a7633","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":52,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6f2b2df7-c99e-4a5b-8000-7ec9e6620872","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":53,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"6cceb181-a5c2-4340-ae12-9eda1719d692","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":53,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"f63cb477-c2ee-48be-a4be-a2c6158a04f0","block_type":"box","text":"by other regimes, including those of the European Union and United Kingdom, and trading venues that impose","page_number":53,"box":{"x":69,"y":75,"width":785,"height":11}},{"id":"2b4e3a33-b6b3-4826-9c88-470b890d4cc4","block_type":"box","text":"position limits on commodity derivative contracts.","page_number":53,"box":{"x":70,"y":90,"width":350,"height":11}},{"id":"e2e11bda-1a86-4a0c-9d52-47d4323f46c5","block_type":"box","text":"Additional Regulation of Derivatives.","page_number":53,"box":{"x":101,"y":113,"width":256,"height":11}},{"id":"4e2bb71d-c731-49dc-a7ab-5ebea9c8788d","block_type":"box","text":"Regulatory bodies outside the U.S. have also passed, proposed, or may","page_number":53,"box":{"x":364,"y":113,"width":513,"height":11}},{"id":"8909eeda-16fd-488a-b5da-9561034800a1","block_type":"box","text":"propose in the future, legislation similar to Dodd-Frank or other legislation that could increase the costs of","page_number":53,"box":{"x":70,"y":128,"width":757,"height":11}},{"id":"71f60aa4-a845-4a1f-a706-bc20dfb0a28c","block_type":"box","text":"participating in, or otherwise adversely impact the liquidity of, participating in the commodities markets. For example,","page_number":53,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"a51133c1-11e2-41c1-b945-4589adc07caa","block_type":"box","text":"the European Market Infrastructure Regulation (Regulation (EU) No 648/2012) (“EMIR”) introduced certain","page_number":53,"box":{"x":68,"y":158,"width":762,"height":11}},{"id":"02e51610-db0f-438b-9596-c6b00c450568","block_type":"box","text":"requirements in respect of OTC derivatives including: (i) the mandatory clearing of OTC derivative contracts declared","page_number":53,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"e47c3f7b-8dc8-4891-924f-0184e4a911d0","block_type":"box","text":"subject to the clearing obligation; (ii) risk mitigation techniques in respect of uncleared OTC derivative contracts,","page_number":53,"box":{"x":69,"y":188,"width":798,"height":12}},{"id":"5fea8492-0dfc-484d-90e5-4fc0d1222ff6","block_type":"box","text":"including the mandatory margining of uncleared OTC derivative contracts; and (iii) reporting and recordkeeping","page_number":53,"box":{"x":70,"y":203,"width":785,"height":12}},{"id":"81e6d05e-932b-4053-bd7f-b93f910068f7","block_type":"box","text":"requirements in respect of all derivatives contracts. By way of further example, the European Union Markets in","page_number":53,"box":{"x":69,"y":218,"width":787,"height":12}},{"id":"7401a957-6f95-4eae-85d5-81dd8a63430d","block_type":"box","text":"Financial Instruments Directive (Directive 2014/65/EU) and Markets in Financial Instruments Regulation (Regulation","page_number":53,"box":{"x":70,"y":234,"width":830,"height":11}},{"id":"5be049ad-6563-4293-ac47-2bd46ccea56e","block_type":"box","text":"(EU) No 600/2014) (together “MiFID II”), which have applied since January 3, 2018, govern the provision of","page_number":53,"box":{"x":69,"y":249,"width":771,"height":11}},{"id":"1d8e5db0-192d-4a55-aeec-01b35a0d6f7d","block_type":"box","text":"investment services and activities in relation to, as well as the organized trading of, financial instruments such as","page_number":53,"box":{"x":70,"y":264,"width":812,"height":11}},{"id":"a9e74481-2f83-489b-9ad3-c26deaa0da8f","block_type":"box","text":"shares, bonds, units in collective investment schemes and derivatives. In particular, MiFID II requires European Union","page_number":53,"box":{"x":69,"y":279,"width":839,"height":11}},{"id":"1fc008ef-430c-41e5-93f3-5c059ab0de18","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":53,"box":{"x":70,"y":294,"width":793,"height":11}},{"id":"0cc8fa57-1770-41e2-85f5-1b852cc380eb","block_type":"box","text":"derivatives traded on European Union trading venues and in “economically equivalent” OTC contracts. If the","page_number":53,"box":{"x":69,"y":309,"width":765,"height":11}},{"id":"25155977-27ae-4b11-9f97-c79f4aad14d4","block_type":"box","text":"requirements of EMIR and MiFID II apply, the cost of derivatives transactions is expected to increase.","page_number":53,"box":{"x":69,"y":324,"width":720,"height":11}},{"id":"30e8e69b-3697-478f-b376-e9695c7ed6fb","block_type":"box","text":"In addition, regulations adopted by global prudential regulators that are now in effect require certain prudentially","page_number":53,"box":{"x":102,"y":347,"width":802,"height":11}},{"id":"c66f70b5-2c5f-4beb-a745-9fe702df53b3","block_type":"box","text":"regulated entities and certain of their affiliates and subsidiaries (including swap dealers) to include in their","page_number":53,"box":{"x":69,"y":362,"width":762,"height":11}},{"id":"0d3f2044-0d1c-4a48-9b5c-fa5816d5af0a","block_type":"box","text":"derivatives contracts and certain other financial contracts, terms that delay or restrict the rights of counterparties","page_number":53,"box":{"x":69,"y":377,"width":810,"height":12}},{"id":"f4f6a0f7-fe20-401c-a1ba-1a91c4e4ea0b","block_type":"box","text":"(such as the Funds) to terminate such contracts, foreclose upon collateral, exercise other default rights or restrict","page_number":53,"box":{"x":69,"y":392,"width":812,"height":12}},{"id":"083894df-64c4-43c7-9026-1bda1a4c3385","block_type":"box","text":"transfers of credit support in the event that the prudentially regulated entity and/or its affiliates are subject to","page_number":53,"box":{"x":68,"y":407,"width":787,"height":12}},{"id":"380d6d19-3b0f-4139-9612-3d46f8aef23f","block_type":"box","text":"certain types of resolution or insolvency proceedings. Similar regulations and laws have been adopted in non-U.S.","page_number":53,"box":{"x":69,"y":423,"width":810,"height":11}},{"id":"715dd8cd-19f2-412c-90b6-06dba33aade3","block_type":"box","text":"jurisdictions that may apply to a Fund’s counterparties located in those jurisdictions. In particular, in the United","page_number":53,"box":{"x":67,"y":438,"width":795,"height":11}},{"id":"9aa56f6f-45cc-4a03-9cbf-c0382abefad0","block_type":"box","text":"Kingdom and the European Union, governmental authorities could reduce, eliminate or convert to equity the liabilities","page_number":53,"box":{"x":70,"y":453,"width":835,"height":11}},{"id":"bff11cff-0524-4a2e-b5d9-c2e983594a69","block_type":"box","text":"to a Fund of a counterparty experiencing financial difficulties (sometimes referred to as a “bail in”). It is possible that","page_number":53,"box":{"x":68,"y":468,"width":839,"height":11}},{"id":"bfcb75cd-b8ae-4d79-bc96-5ba4f93267df","block_type":"box","text":"these requirements, as well as potential additional related government regulation, could adversely affect a Fund’s","page_number":53,"box":{"x":68,"y":483,"width":814,"height":11}},{"id":"fab3a17a-d8cc-401b-b25b-cbee0df5c1d0","block_type":"box","text":"ability to terminate existing derivatives contracts, exercise default rights or satisfy obligations owed to it with","page_number":53,"box":{"x":69,"y":498,"width":773,"height":11}},{"id":"91357bd9-9d9e-4827-804d-626f65935291","block_type":"box","text":"collateral received under such contracts.","page_number":53,"box":{"x":69,"y":514,"width":288,"height":8}},{"id":"7df8488a-a87f-46b8-9733-94f292b0b5a7","block_type":"box","text":"Risk Factors in Derivatives.","page_number":53,"box":{"x":102,"y":536,"width":191,"height":9}},{"id":"ff1f4249-f7e7-4dd0-a1e4-9fb0e69acc98","block_type":"box","text":"There are significant risks that apply generally to derivatives transactions, including:","page_number":53,"box":{"x":101,"y":559,"width":597,"height":11}},{"id":"f379ce74-30eb-4948-b1ae-ad26c7d2535d","block_type":"box","text":"Correlation Risk","page_number":53,"box":{"x":102,"y":581,"width":114,"height":9}},{"id":"5a5148a4-baee-4059-abfd-30e9a02b02c6","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":53,"box":{"x":220,"y":581,"width":668,"height":12}},{"id":"d119f763-8088-43d4-abf5-13d216887cda","block_type":"box","text":"the portfolio holdings that are being hedged or of the particular market or security to which the Fund seeks exposure.","page_number":53,"box":{"x":68,"y":596,"width":837,"height":12}},{"id":"77c2e286-70ba-4592-bce6-5c15c1a8e65e","block_type":"box","text":"There are a number of factors which may prevent a derivative instrument from achieving the desired correlation (or","page_number":53,"box":{"x":68,"y":612,"width":818,"height":11}},{"id":"07a5305c-f99f-4e14-aeb7-3e7fd8377695","block_type":"box","text":"inverse correlation) with an underlying asset, rate or index, such as the impact of fees, expenses and transaction","page_number":53,"box":{"x":70,"y":627,"width":806,"height":11}},{"id":"901d1860-cefa-45a2-aec3-f3efe79c14a2","block_type":"box","text":"costs, the timing of pricing, and disruptions or illiquidity in the markets for such derivative instrument.","page_number":53,"box":{"x":69,"y":642,"width":725,"height":11}},{"id":"773e408a-bc94-412a-b4a2-971ad6fea84e","block_type":"box","text":"Counterpar ty Risk","page_number":53,"box":{"x":102,"y":665,"width":128,"height":11}},{"id":"83a00b9c-c3e5-4d18-ba9a-0e40d8380cad","block_type":"box","text":"— the risk that a derivatives transaction counterparty will be unable or unwilling to make","page_number":53,"box":{"x":233,"y":665,"width":632,"height":11}},{"id":"4270b381-e197-447e-a66f-62268000c1b3","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":53,"box":{"x":70,"y":680,"width":830,"height":11}},{"id":"d3b7995d-88a0-4d5a-b7d3-fdf13254a196","block_type":"box","text":"a counterparty. In particular, derivatives traded in OTC markets often are not guaranteed by an exchange or clearing","page_number":53,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"29c08fb5-9bd7-46ff-969f-51c8015d6117","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":53,"box":{"x":69,"y":710,"width":834,"height":11}},{"id":"8059b6c4-3c4b-44e1-b40d-1f1883431b7e","block_type":"box","text":"instruments or has deposited collateral with its counterparties the Fund is at risk that its counterparties will become","page_number":53,"box":{"x":70,"y":725,"width":831,"height":11}},{"id":"70a47c99-081b-4234-9fc5-ad0cd3dd427f","block_type":"box","text":"bankrupt or otherwise fail to honor their obligations. A Fund will typically attempt to minimize counterparty risk by","page_number":53,"box":{"x":69,"y":740,"width":806,"height":11}},{"id":"27c1a511-ddbd-45e3-94fe-25c1c4383270","block_type":"box","text":"engaging in OTC derivatives transactions only with creditworthy entities that have substantial capital or that have","page_number":53,"box":{"x":69,"y":755,"width":803,"height":11}},{"id":"af6c53d8-ede0-451f-ae25-ceafcd70b328","block_type":"box","text":"provided the Fund with a third-party guaranty or other credit support. When a Fund enters into a derivatives","page_number":53,"box":{"x":70,"y":771,"width":760,"height":11}},{"id":"307d1585-5ae4-4d61-85cf-064dfe4a64d6","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":53,"box":{"x":68,"y":785,"width":819,"height":12}},{"id":"1f25f6ed-2004-46c9-b11c-070723c02c17","block_type":"box","text":"clearing house and the clearing member through which it holds its cleared position. Credit risk of market participants","page_number":53,"box":{"x":69,"y":801,"width":834,"height":11}},{"id":"d3a44a9b-d1f9-4ca0-aae8-7f2417ff5a0a","block_type":"box","text":"with respect to derivatives that are centrally cleared is concentrated in a few clearing houses and increasingly fewer","page_number":53,"box":{"x":68,"y":816,"width":826,"height":11}},{"id":"4f6af920-0ee5-4bd4-8036-a7a123b53d32","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":53,"box":{"x":69,"y":831,"width":805,"height":11}},{"id":"ed946301-32bb-4239-a485-a46de4de70cb","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":53,"box":{"x":70,"y":846,"width":824,"height":11}},{"id":"6d51a63f-05ac-415a-8826-d6f134541daa","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":53,"box":{"x":70,"y":861,"width":816,"height":11}},{"id":"c205fcbd-1dc1-4b03-ad9c-e895b4011927","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":53,"box":{"x":70,"y":876,"width":771,"height":11}},{"id":"f5c57ba6-554e-4725-bf8c-7b13d8802063","block_type":"box","text":"derivatives. Although a clearing member is required to segregate assets from customers with respect to cleared","page_number":53,"box":{"x":69,"y":891,"width":797,"height":12}},{"id":"b3604419-f96e-4b23-9180-1d9f40506ff6","block_type":"box","text":"derivatives positions from the clearing member’s proprietary assets, if a clearing member does not comply with the","page_number":53,"box":{"x":69,"y":906,"width":822,"height":12}},{"id":"f6997fa9-ce0f-487d-aae3-f520e6d4330f","block_type":"box","text":"II-15","page_number":53,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"4a78a812-3a10-4680-9433-50bc5b564c3e","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":53,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e94ac2a7-84dd-4297-8b4b-b62d367b39b1","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":54,"box":{"x":69,"y":45,"width":829,"height":11}},{"id":"9e3d4c6e-dde4-495a-9b4d-71c0634d6f1d","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":54,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"8bedcdd3-1e7b-4847-8c17-27150ac4f6cd","block_type":"box","text":"by the clearing member.","page_number":54,"box":{"x":69,"y":75,"width":169,"height":11}},{"id":"3ddd297f-de69-4e35-8772-808460b61923","block_type":"box","text":"Credit Risk","page_number":54,"box":{"x":102,"y":98,"width":78,"height":9}},{"id":"eef25478-4bd2-4544-9216-d5f57a0ee7cf","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":54,"box":{"x":184,"y":98,"width":698,"height":11}},{"id":"0fe54c4d-52ea-48b6-9a76-556b8d742020","block_type":"box","text":"honor its financial obligations.","page_number":54,"box":{"x":69,"y":113,"width":213,"height":11}},{"id":"f52fb316-c539-4ebc-be03-2f9ccba3e17c","block_type":"box","text":"Currency Risk","page_number":54,"box":{"x":102,"y":135,"width":98,"height":11}},{"id":"ea844b87-6948-4c7b-bf3b-1b8f871d3a2d","block_type":"box","text":"— the risk that changes in the exchange rate between two currencies will adversely affect the","page_number":54,"box":{"x":204,"y":135,"width":669,"height":12}},{"id":"7f97c723-e4a4-4a39-8fe1-f2533cbfb806","block_type":"box","text":"value (in U.S. dollar terms) of a derivative.","page_number":54,"box":{"x":68,"y":150,"width":300,"height":11}},{"id":"276dc670-6d98-4416-93d8-772eee8fba17","block_type":"box","text":"Illiquidity Risk","page_number":54,"box":{"x":102,"y":173,"width":98,"height":11}},{"id":"f8909958-db6b-470d-a4bf-aab68a14c8a7","block_type":"box","text":"— the risk that certain securities or instruments may be difficult or impossible to sell at the time","page_number":54,"box":{"x":204,"y":173,"width":693,"height":11}},{"id":"54962715-a3f2-4620-9970-027883c04730","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":54,"box":{"x":69,"y":188,"width":814,"height":12}},{"id":"7fb8a1da-c57a-42bd-b910-d36fe69e5d48","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":54,"box":{"x":69,"y":203,"width":799,"height":12}},{"id":"e4f8e5db-b34b-4cad-9b13-6da09b6b6c89","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":54,"box":{"x":69,"y":218,"width":799,"height":12}},{"id":"511b1fc6-d81e-4775-bba3-d6331510bf01","block_type":"box","text":"incurring substantial losses (if at all). Certain OTC derivatives, including swaps and OTC options, involve substantial","page_number":54,"box":{"x":70,"y":234,"width":824,"height":11}},{"id":"f5e5ba06-c30b-4f68-8b2d-8930b3b1cb4a","block_type":"box","text":"illiquidity risk. Illiquidity may also make it more difficult for a Fund to ascertain a market value for such derivatives. A","page_number":54,"box":{"x":70,"y":249,"width":830,"height":11}},{"id":"70a7b528-a037-47cb-9008-8f40d62f4100","block_type":"box","text":"Fund will, therefore, acquire illiquid OTC derivatives (i) if the agreement pursuant to which the instrument is","page_number":54,"box":{"x":70,"y":264,"width":762,"height":11}},{"id":"0805e2f9-d4f4-40fc-ad7c-a8664b22b681","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":54,"box":{"x":70,"y":279,"width":827,"height":11}},{"id":"65154e07-6f7d-4f71-9475-81f60cb4a70c","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":54,"box":{"x":69,"y":294,"width":816,"height":11}},{"id":"9513ff17-08f3-4bd2-a28e-ee89c98a6084","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":54,"box":{"x":68,"y":309,"width":831,"height":11}},{"id":"783d6e8b-c39c-4a91-9ea0-10133ce27fea","block_type":"box","text":"markets may be due to various factors, including congestion, disorderly markets, limitations on deliverable supplies,","page_number":54,"box":{"x":69,"y":324,"width":828,"height":12}},{"id":"c81d4002-c0a8-49c0-bfa8-c1597b79e378","block_type":"box","text":"the participation of speculators, government regulation and intervention, and technical and operational or system","page_number":54,"box":{"x":68,"y":339,"width":809,"height":12}},{"id":"090ed771-466b-4c35-8268-45b4eebff6bd","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":54,"box":{"x":68,"y":355,"width":826,"height":11}},{"id":"cf769cc7-dad8-4675-9928-093a19f899ca","block_type":"box","text":"“daily price fluctuation limits” established by the exchanges which limit the amount of fluctuation in an exchange","page_number":54,"box":{"x":70,"y":370,"width":806,"height":11}},{"id":"058454c0-ad92-420b-b3ed-e2813bb96d99","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":54,"box":{"x":68,"y":385,"width":838,"height":11}},{"id":"4a5da37d-94d4-41cd-9b40-2ab294ef459a","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":54,"box":{"x":69,"y":400,"width":827,"height":11}},{"id":"7771a599-be2b-40a5-81d7-6fd58380aca7","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":54,"box":{"x":69,"y":415,"width":828,"height":11}},{"id":"567b7954-018a-403d-ad9b-d6b72457fae4","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":54,"box":{"x":69,"y":430,"width":796,"height":11}},{"id":"1d47a9c3-9367-4fda-a88f-57d44b2fcc60","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":54,"box":{"x":70,"y":445,"width":759,"height":12}},{"id":"fcd43b6b-3cc6-465e-9705-f7963bf520e3","block_type":"box","text":"insufficient cash, it may have to sell portfolio securities to meet daily variation margin requirements at a time when it","page_number":54,"box":{"x":70,"y":460,"width":837,"height":12}},{"id":"13c7a4f8-179b-49f1-8857-0e67083f89e2","block_type":"box","text":"may be disadvantageous to do so.","page_number":54,"box":{"x":69,"y":476,"width":243,"height":11}},{"id":"eef656cf-4b04-4bd6-8e87-6d7ac8bae386","block_type":"box","text":"Index Risk","page_number":54,"box":{"x":102,"y":498,"width":73,"height":9}},{"id":"7510deed-c2e1-4e72-8a3d-c19ab556cc4a","block_type":"box","text":"— if the derivative is linked to the performance of an index, it will be subject to the risks associated","page_number":54,"box":{"x":179,"y":498,"width":714,"height":11}},{"id":"283eed70-a7ee-44ba-aea8-725e18af09f5","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":54,"box":{"x":68,"y":513,"width":800,"height":12}},{"id":"34b65292-8826-45e2-a25d-69de962485ea","block_type":"box","text":"reduction in the value of the derivative to below the price that the Fund paid for such derivative.","page_number":54,"box":{"x":69,"y":528,"width":678,"height":11}},{"id":"b04cd571-9ab5-4ae3-beb2-86a58ad30a13","block_type":"box","text":"Legal Risk","page_number":54,"box":{"x":102,"y":551,"width":73,"height":11}},{"id":"fc1af5be-2608-4a8f-9063-f77caab6e911","block_type":"box","text":"— the risk of insufficient documentation, insufficient capacity or authority of counterparty, or legality","page_number":54,"box":{"x":179,"y":551,"width":717,"height":11}},{"id":"c5c6206b-d1a9-4865-9a1b-1990fc94ec6c","block_type":"box","text":"or enforceability of a contract.","page_number":54,"box":{"x":69,"y":566,"width":211,"height":11}},{"id":"a555e751-6362-4b40-9f24-b29bb0403b11","block_type":"box","text":"Leverage Risk","page_number":54,"box":{"x":102,"y":589,"width":99,"height":11}},{"id":"2ee94961-42be-4568-9a36-c4b6ac92920d","block_type":"box","text":"— the risk that a Fund’s derivatives transactions can magnify the Fund’s gains and losses.","page_number":54,"box":{"x":205,"y":589,"width":648,"height":11}},{"id":"55f75859-5836-4576-81ee-1a8be63cd9b5","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":54,"box":{"x":70,"y":604,"width":823,"height":11}},{"id":"cdb2b5f3-3ba9-4627-bc06-7a99ff193d37","block_type":"box","text":"in losses that greatly exceed the amount originally invested.","page_number":54,"box":{"x":70,"y":619,"width":425,"height":11}},{"id":"64ad5046-811b-4e46-8234-911be0a671ef","block_type":"box","text":"Market Risk","page_number":54,"box":{"x":102,"y":642,"width":85,"height":9}},{"id":"1601dee1-65a2-47f0-bdfa-d56b1cc1369c","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":54,"box":{"x":191,"y":642,"width":716,"height":11}},{"id":"26dc370a-341f-4bfc-ad53-af8f998898ca","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":54,"box":{"x":68,"y":657,"width":833,"height":11}},{"id":"76178676-9473-4243-b42f-6b85bd6684c0","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":54,"box":{"x":69,"y":672,"width":794,"height":11}},{"id":"ea6fa03d-1223-4128-b02a-4d6a4c85fe5a","block_type":"box","text":"affected.","page_number":54,"box":{"x":69,"y":687,"width":62,"height":9}},{"id":"7193695e-36f0-4627-b761-951c1a8eecb4","block_type":"box","text":"Operational Risk","page_number":54,"box":{"x":102,"y":710,"width":117,"height":11}},{"id":"b6d28dd1-1857-41c0-8733-5f694059eeaf","block_type":"box","text":"— the risk related to potential operational issues, including documentation issues, settlement","page_number":54,"box":{"x":223,"y":710,"width":674,"height":11}},{"id":"f5f4ae29-508a-49bb-bb48-1fbb995712c0","block_type":"box","text":"issues, systems failures, inadequate controls and human error.","page_number":54,"box":{"x":70,"y":725,"width":451,"height":11}},{"id":"585e33dc-c15d-4605-aefc-324283e6958c","block_type":"box","text":"Valuation Risk","page_number":54,"box":{"x":103,"y":748,"width":99,"height":9}},{"id":"1b80615c-9968-4ea5-ac35-81a62ff5504d","block_type":"box","text":"— the risk that valuation sources for a derivative will not be readily available in the market. This is","page_number":54,"box":{"x":206,"y":748,"width":701,"height":11}},{"id":"b9de708c-7629-4d45-a1bd-2f725b1ba2c8","block_type":"box","text":"possible especially in times of market distress, since many market participants may be reluctant to purchase","page_number":54,"box":{"x":70,"y":763,"width":779,"height":11}},{"id":"0ffb45f0-9697-4082-b2c5-32bdffdf5410","block_type":"box","text":"complex instruments or quote prices for them.","page_number":54,"box":{"x":69,"y":778,"width":329,"height":11}},{"id":"fdfbc073-8b92-4e2c-a1d4-699482cd48c7","block_type":"box","text":"Volatility Risk","page_number":54,"box":{"x":103,"y":801,"width":93,"height":11}},{"id":"95396916-0857-44a0-9270-a999c823b098","block_type":"box","text":"— the risk that the value of derivatives will fluctuate significantly within a short time period.","page_number":54,"box":{"x":200,"y":801,"width":652,"height":11}},{"id":"4b421702-d9c3-4c98-804f-03d694bb14b1","block_type":"box","text":"Types of Derivatives Transactions.","page_number":54,"box":{"x":103,"y":823,"width":240,"height":11}},{"id":"a718bc68-78de-4b4c-9492-4ae642385f5d","block_type":"box","text":"A Fund may enter into derivatives transactions in accordance with its investment guidelines and restrictions,","page_number":54,"box":{"x":101,"y":846,"width":771,"height":11}},{"id":"bc2fc527-7487-4ab1-a691-45266cb3539d","block_type":"box","text":"including the following:","page_number":54,"box":{"x":70,"y":861,"width":159,"height":11}},{"id":"3e5db9a8-2ad1-4c00-a192-56997e446581","block_type":"box","text":"Futures.","page_number":54,"box":{"x":102,"y":884,"width":56,"height":9}},{"id":"4ba09c7c-6c8b-4ba4-8ec6-e93af6067732","block_type":"box","text":"II-16","page_number":54,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"73f3f847-fcf1-4946-91d1-d030743cea9c","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":54,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"007f3ef6-e6e4-4ca2-aa39-72e92a3303aa","block_type":"box","text":"A Fund may enter into futures contracts (“futures”) and options on futures contracts. Futures are standardized,","page_number":55,"box":{"x":101,"y":45,"width":791,"height":11}},{"id":"2d4ed42c-4c3b-4421-8d89-e76f5c57bb98","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":55,"box":{"x":69,"y":60,"width":799,"height":11}},{"id":"6f0c8291-aa9c-4b8b-aeb0-cf22149dfe16","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":55,"box":{"x":69,"y":75,"width":800,"height":11}},{"id":"f3a38859-7436-46dc-be5a-8e0622f82d34","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":55,"box":{"x":69,"y":90,"width":838,"height":11}},{"id":"d1df0ce9-0a58-497a-9d06-2ea9b782c87e","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":55,"box":{"x":69,"y":105,"width":820,"height":11}},{"id":"47d3874b-15ca-4798-8a60-e790eb026edf","block_type":"box","text":"applicable, based on the mark-to-market movement of the contract.","page_number":55,"box":{"x":69,"y":120,"width":478,"height":11}},{"id":"f7636f90-1505-4605-9742-f3a6fe504217","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":55,"box":{"x":101,"y":143,"width":801,"height":11}},{"id":"de35a1b2-e0af-40a7-be3d-4c7decc15bfb","block_type":"box","text":"market value of portfolio holdings correlated with the futures contract. However, in the event the market value of the","page_number":55,"box":{"x":69,"y":158,"width":829,"height":11}},{"id":"c78c4026-9ce2-4613-b66a-0514d926dd83","block_type":"box","text":"portfolio holdings correlated with the futures contract increases rather than decreases, a Fund will realize a loss on","page_number":55,"box":{"x":70,"y":173,"width":822,"height":11}},{"id":"43ea6eee-26f3-4d5d-9b74-f233ee68ab48","block_type":"box","text":"the futures position and a lower return on the portfolio holdings than would have been realized without the purchase","page_number":55,"box":{"x":68,"y":188,"width":830,"height":12}},{"id":"c5bb7613-287a-4c01-bcb1-afaa2b8e5594","block_type":"box","text":"of the futures contract.","page_number":55,"box":{"x":69,"y":203,"width":162,"height":9}},{"id":"781ea136-b654-442b-b295-6568accf3df3","block_type":"box","text":"The purchase of a futures contract may provide a Fund a lower cost alternative to purchasing securities or","page_number":55,"box":{"x":101,"y":226,"width":756,"height":11}},{"id":"32dbf06f-0e59-443e-9c93-2dac07ecd798","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":55,"box":{"x":69,"y":241,"width":820,"height":11}},{"id":"0cd612a1-2571-47a7-a4ba-56f34054d9f7","block_type":"box","text":"complete an anticipatory hedge transaction relating to a futures contract, however, the Fund may realize a loss","page_number":55,"box":{"x":69,"y":256,"width":789,"height":12}},{"id":"ccb8cbc8-c5b4-446d-bc9e-a33843c92428","block_type":"box","text":"relating to the futures position.","page_number":55,"box":{"x":69,"y":271,"width":219,"height":12}},{"id":"f6384790-415d-41a3-81c3-fd1139627a21","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":55,"box":{"x":102,"y":294,"width":757,"height":11}},{"id":"3eac7e04-d308-4e95-82c3-76de6c50d167","block_type":"box","text":"required to liquidate positions or may not be able to fully implement trading instructions. Any such liquidation or","page_number":55,"box":{"x":69,"y":309,"width":797,"height":11}},{"id":"c62c5110-ae3c-47b9-8920-e56878c1653b","block_type":"box","text":"limited implementation could result in substantial costs to a Fund. See “—Regulation of Derivatives — Dodd-Frank","page_number":55,"box":{"x":70,"y":324,"width":816,"height":12}},{"id":"33c598ed-0cb4-4bc5-afcc-fe0272c3a6fb","block_type":"box","text":"Regulations” above.","page_number":55,"box":{"x":70,"y":340,"width":140,"height":11}},{"id":"a5ad5fae-4248-4665-aa95-23402c17ded1","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":55,"box":{"x":101,"y":362,"width":799,"height":11}},{"id":"317206dd-5a22-43a6-96ca-ad023d9511ed","block_type":"box","text":"and stock indices. Generally, these strategies would be used under the same market and market sector conditions","page_number":55,"box":{"x":69,"y":377,"width":818,"height":12}},{"id":"f4dbe1db-be4d-4b55-8075-b4e9d1f2ced7","block_type":"box","text":"(","page_number":55,"box":{"x":69,"y":393,"width":3,"height":10}},{"id":"50dec20c-5206-41f7-8ffe-4576d948e9ec","block_type":"box","text":"i.e.","page_number":55,"box":{"x":74,"y":393,"width":21,"height":8}},{"id":"23798abb-9caa-480d-974e-e6bbc2ae109b","block_type":"box","text":", conditions relating to specific types of investments) in which the Fund entered into futures transactions. A Fund","page_number":55,"box":{"x":97,"y":392,"width":803,"height":12}},{"id":"29c3b0cb-4e5c-4f00-8628-8f62493aa690","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":55,"box":{"x":69,"y":407,"width":830,"height":12}},{"id":"1cd591e6-9a85-4574-90ec-d33ab248a34a","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":55,"box":{"x":68,"y":423,"width":835,"height":11}},{"id":"be2cc626-f3b3-447e-8bc4-8c1b6e62a0c6","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":55,"box":{"x":69,"y":438,"width":831,"height":11}},{"id":"d9ff83aa-c001-40c0-8a3c-5c94da1694c0","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":55,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"18301dc0-eff3-4d30-90c3-12035d70b3b7","block_type":"box","text":"Fund intends to purchase.","page_number":55,"box":{"x":70,"y":468,"width":183,"height":11}},{"id":"f3633593-44f7-4efa-bc4c-5f3244781b1f","block_type":"box","text":"To maintain greater flexibility, a Fund may invest in instruments which have characteristics similar to futures","page_number":55,"box":{"x":101,"y":491,"width":768,"height":11}},{"id":"c648c4bc-541e-4b0a-8cb0-7ecbf7fd77c5","block_type":"box","text":"contracts. These instruments may take a variety of forms, such as debt securities with interest or principal payments","page_number":55,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"831831ea-4b35-4339-9615-c4af567ac443","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":55,"box":{"x":69,"y":521,"width":839,"height":11}},{"id":"e27226f9-2a9a-445e-95d5-868b11773c46","block_type":"box","text":"risks of such investments could reflect the risks of investing in futures and securities, including volatility and","page_number":55,"box":{"x":69,"y":536,"width":773,"height":11}},{"id":"48a0e6d8-5fd7-469e-bff1-562259746bbc","block_type":"box","text":"illiquidity.","page_number":55,"box":{"x":70,"y":551,"width":63,"height":11}},{"id":"7635f9be-0cf2-4064-a492-4aaa7f0be80a","block_type":"box","text":"Futures contracts and options on futures contracts are subject to significant correlation risk, leverage risk,","page_number":55,"box":{"x":102,"y":574,"width":757,"height":11}},{"id":"17dd9e81-e6a4-4b2d-80d5-eb37b8055929","block_type":"box","text":"illiquidity risk, market risk and counterparty risk with respect to a Fund’s futures broker or the clearinghouse. See","page_number":55,"box":{"x":70,"y":589,"width":807,"height":11}},{"id":"0eddd2e4-2146-4803-8281-ab5a7e11649f","block_type":"box","text":"“—Risk Factors in Derivatives” above.","page_number":55,"box":{"x":70,"y":604,"width":269,"height":9}},{"id":"ec1ebfbe-e18e-4d13-a974-457ec64a9537","block_type":"box","text":"Certain Funds may invest in futures based on carbon “allowances.” Under certain regulatory regimes, a limit is","page_number":55,"box":{"x":102,"y":627,"width":791,"height":11}},{"id":"a2ebd8b4-f986-421d-8abb-f1db709a9613","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":55,"box":{"x":69,"y":642,"width":838,"height":11}},{"id":"e5ed1818-ecb3-44b0-9646-467e37011851","block_type":"box","text":"can be emitted by regulated entities, such as manufacturers or energy producers. The regulator then may issue or","page_number":55,"box":{"x":69,"y":657,"width":814,"height":11}},{"id":"b0cd162b-c02b-4e89-99a6-7973f8e95346","block_type":"box","text":"sell individual “emission allowances” to regulated entities, which can then be traded on the open market. Commodity","page_number":55,"box":{"x":69,"y":672,"width":837,"height":11}},{"id":"6c7d517c-9733-42bb-8810-a39c9e171075","block_type":"box","text":"futures contracts linked to the value of emission allowances are known as “carbon futures.”","page_number":55,"box":{"x":68,"y":687,"width":657,"height":9}},{"id":"4fddd866-147f-4f37-b64c-ef87c32af8d4","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":55,"box":{"x":101,"y":710,"width":792,"height":11}},{"id":"fe5086a6-d4da-4ca4-85e3-5e9533529481","block_type":"box","text":"for carbon futures contracts. Changes in law, market conditions and expectations, position limits, collateral","page_number":55,"box":{"x":68,"y":725,"width":764,"height":11}},{"id":"0bc0ef21-1108-4a37-8be1-6dfb1621d0eb","block_type":"box","text":"requirements, and other factors each can impact the supply of and demand for carbon futures contracts. The market","page_number":55,"box":{"x":69,"y":740,"width":832,"height":11}},{"id":"0f8847c4-f8a9-473d-8f65-7572c0d89bcb","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":55,"box":{"x":68,"y":755,"width":841,"height":11}},{"id":"2f1c085b-49a4-4a7a-9f40-4e7834dcf1f0","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":55,"box":{"x":69,"y":770,"width":819,"height":11}},{"id":"207e26fe-6346-4928-b532-e6ea7816df63","block_type":"box","text":"difficult to find a counterparty willing to transact at a reasonable price and sufficient size.","page_number":55,"box":{"x":69,"y":785,"width":637,"height":12}},{"id":"4ea86b34-f8ff-4127-b9d3-1308f444f5db","block_type":"box","text":"Swap Agreements.","page_number":55,"box":{"x":102,"y":808,"width":131,"height":11}},{"id":"00c4b9e2-aed0-440d-8e98-4dae726fdb0a","block_type":"box","text":"A Fund may enter into swap agreements for hedging purposes or speculative purposes. Swap agreements are","page_number":55,"box":{"x":101,"y":831,"width":782,"height":11}},{"id":"b96151ad-9dca-4b9f-ad08-ad602efb0a0e","block_type":"box","text":"OTC contracts entered into primarily by financial institutions and institutional investors which may or may not be","page_number":55,"box":{"x":69,"y":846,"width":796,"height":11}},{"id":"704e402e-e01f-4686-9163-f94efad28e68","block_type":"box","text":"cleared by a central clearinghouse. In a standard “swap” transaction, two parties agree to exchange the returns","page_number":55,"box":{"x":69,"y":861,"width":799,"height":11}},{"id":"6c69ba8c-a710-4607-a1c4-6502b4c04e69","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":55,"box":{"x":69,"y":876,"width":792,"height":11}},{"id":"9568e606-1955-4729-9607-b3f4fbfcb031","block_type":"box","text":"factor. The gross returns to be exchanged or “swapped” between the parties are generally calculated with respect to","page_number":55,"box":{"x":68,"y":891,"width":832,"height":12}},{"id":"f90b3033-7e47-4d61-a844-cdff0dd9bafe","block_type":"box","text":"a “notional amount,”","page_number":55,"box":{"x":69,"y":907,"width":147,"height":10}},{"id":"41bdec6a-8225-4920-87fe-6cad3eb86341","block_type":"box","text":"e.g.","page_number":55,"box":{"x":223,"y":908,"width":25,"height":10}},{"id":"0e12a227-289a-4477-97ee-4a7bcb5b122c","block_type":"box","text":", the return or increase in value of a particular dollar amount invested at a particular","page_number":55,"box":{"x":251,"y":906,"width":602,"height":11}},{"id":"d499c173-49e7-47f1-9996-f00b1887616b","block_type":"box","text":"II-17","page_number":55,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b6064cc5-6eac-444e-a7c1-bf04874736fe","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":55,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a81955e1-97c0-4ffa-9844-66e4ce799794","block_type":"box","text":"interest rate, in a particular foreign currency, or in a “basket” of securities representing a particular index. The","page_number":56,"box":{"x":70,"y":45,"width":787,"height":11}},{"id":"ed7ad154-44ef-4bc2-9996-4175114a2083","block_type":"box","text":"notional amount of the swap agreement is only used to calculate the obligations that the parties to a swap","page_number":56,"box":{"x":69,"y":60,"width":762,"height":11}},{"id":"03d6ed7f-2115-4439-8603-4e56e60ee105","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":56,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"6f49331c-41d0-4154-b5de-1bc0e9f955e2","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":56,"box":{"x":69,"y":90,"width":832,"height":11}},{"id":"de5ff409-fbed-4e8f-8269-12c736e1b292","block_type":"box","text":"by each party to the agreement. Swaps that are not cleared involve substantial counterparty risk. A Fund will typically","page_number":56,"box":{"x":69,"y":105,"width":835,"height":11}},{"id":"9ebcac4f-7f81-4335-8a8d-33774c181747","block_type":"box","text":"attempt to mitigate this counterparty risk by entering into swap agreements only with creditworthy entities that have","page_number":56,"box":{"x":69,"y":120,"width":826,"height":12}},{"id":"9bd423de-3c2c-45ba-b1c6-b3fa2fee52de","block_type":"box","text":"substantial capital or that have provided the Fund with a third-party guaranty or other credit support. A Fund’s ability","page_number":56,"box":{"x":69,"y":136,"width":827,"height":11}},{"id":"bc2ff80c-de85-4b2d-b1fd-6bd992fbce20","block_type":"box","text":"to use swap agreements may be restricted by the tax rules applicable to registered investment companies.","page_number":56,"box":{"x":68,"y":151,"width":763,"height":11}},{"id":"fbede21b-79f6-403f-b3fc-08b2dba0e27f","block_type":"box","text":"Credit Default Swaps and Similar Instruments.","page_number":56,"box":{"x":102,"y":173,"width":329,"height":11}},{"id":"3520389b-7405-4d09-ad8a-d29029a61cc5","block_type":"box","text":"Certain Funds may enter into credit default swaps and similar","page_number":56,"box":{"x":438,"y":173,"width":439,"height":11}},{"id":"00d19e09-df13-4b21-b887-06f1f97b9f1f","block_type":"box","text":"instruments. Credit default swaps are standardized agreements in which the protection “buyer” pays the protection","page_number":56,"box":{"x":70,"y":188,"width":821,"height":12}},{"id":"c6065243-9f3b-4083-820d-a75c9dbb6adb","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":56,"box":{"x":70,"y":203,"width":831,"height":12}},{"id":"925957f1-5b41-44c1-95cb-404811f25721","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":56,"box":{"x":69,"y":218,"width":801,"height":12}},{"id":"20a60302-74b6-4122-a8d2-2edac22864f2","block_type":"box","text":"buyer the difference between the notional amount of the contract and the value of a portfolio of securities issued by","page_number":56,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"cab67f97-c7e3-465a-b42b-ce2d75b74229","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":56,"box":{"x":68,"y":249,"width":798,"height":11}},{"id":"bfce5a11-07bf-49e2-a4e4-134076a2e24d","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":56,"box":{"x":69,"y":264,"width":827,"height":11}},{"id":"58f5ee60-2818-4f29-a748-cbc2009daf7c","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":56,"box":{"x":69,"y":279,"width":836,"height":11}},{"id":"d4fa928f-cb32-455c-b843-235a30e327b8","block_type":"box","text":"index CDS.","page_number":56,"box":{"x":70,"y":294,"width":75,"height":9}},{"id":"5a895457-f5c9-4d49-be6d-782d393eb5a5","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":56,"box":{"x":102,"y":317,"width":800,"height":11}},{"id":"39cc671f-8f79-477e-a293-baf554125f35","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":56,"box":{"x":69,"y":332,"width":806,"height":9}},{"id":"b0263ae3-947d-49c9-9204-95aaaecd6028","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":56,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"1220db9e-a2b2-4c70-97b9-f601306819d6","block_type":"box","text":"available only at unfavorable prices, as would be the case in a so-called “short squeeze.” In certain instances of","page_number":56,"box":{"x":69,"y":362,"width":804,"height":11}},{"id":"1c424459-620e-497a-ae8a-b4e2bceeb428","block_type":"box","text":"issuer defaults or restructurings, it has been unclear under the standard industry documentation for credit default","page_number":56,"box":{"x":70,"y":377,"width":812,"height":12}},{"id":"b0baf5ef-7331-4b5f-ad1a-d7892662a0f3","block_type":"box","text":"swaps whether or not a “credit event” triggering the seller’s payment obligation had occurred. Certain initiatives","page_number":56,"box":{"x":69,"y":392,"width":798,"height":12}},{"id":"82a04024-efda-435b-8b5c-b1c1ab84dd30","block_type":"box","text":"adopted by derivatives market participants, including the International Swaps and Derivatives Association (“ISDA”),","page_number":56,"box":{"x":69,"y":408,"width":819,"height":11}},{"id":"d4bfade2-545f-423d-ba74-d8a946c85881","block_type":"box","text":"are designed to implement uniform settlement terms into standard credit default swap documentation, as well as","page_number":56,"box":{"x":69,"y":423,"width":810,"height":11}},{"id":"c39598a4-c9b7-485f-95a4-255bd58ef549","block_type":"box","text":"refine the practices for the transparent conduct of the credit default swap market generally. Among these initiatives","page_number":56,"box":{"x":69,"y":438,"width":821,"height":11}},{"id":"cd6e5184-a199-400d-a819-8642129db5f7","block_type":"box","text":"are the ISDA Credit Derivatives Determination Committee and the implementation of market-wide cash settlement","page_number":56,"box":{"x":69,"y":453,"width":811,"height":11}},{"id":"a13b7ba8-6e3a-4f1f-8bc2-836492a59ed7","block_type":"box","text":"protocols applicable to all market-standard credit default swaps. These initiatives are intended to reduce both the","page_number":56,"box":{"x":70,"y":468,"width":809,"height":11}},{"id":"2802f55b-0d59-41de-af83-2d3485b693bc","block_type":"box","text":"uncertainty as to the occurrence of credit events and the risk of a “short squeeze” by providing that the ISDA Credit","page_number":56,"box":{"x":69,"y":483,"width":827,"height":11}},{"id":"1f40917f-0f9c-4e4b-b5d3-44717178a02d","block_type":"box","text":"Derivatives Determinations Committee will make determinations as to whether a credit event has occurred, establish","page_number":56,"box":{"x":70,"y":498,"width":834,"height":11}},{"id":"81822dd6-9005-4d3a-a527-768a0f2b5aad","block_type":"box","text":"an auction to determine a settlement price and identify the deliverable securities for purposes of the auction,","page_number":56,"box":{"x":69,"y":513,"width":778,"height":11}},{"id":"a2361ec7-41c7-4823-b56a-a08d251e06b5","block_type":"box","text":"although the ISDA Credit Derivatives Determinations Committee may in certain limited circumstances refrain from","page_number":56,"box":{"x":69,"y":528,"width":809,"height":12}},{"id":"18296ac2-5931-433a-86b8-070e7cca9c16","block_type":"box","text":"doing so. In the event the ISDA Credit Derivatives Determinations Committee cannot reach a timely resolution with","page_number":56,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"54f0f13c-4630-48c9-a630-9c3f7d6c8ee7","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":56,"box":{"x":69,"y":559,"width":807,"height":11}},{"id":"c932b8e4-d1e4-4a66-8452-f588a09cab22","block_type":"box","text":"realize the full value of the credit default swap upon a default by the reference entity. Furthermore, a Fund may enter","page_number":56,"box":{"x":69,"y":574,"width":832,"height":11}},{"id":"7ceb8f97-6b1c-4bed-b3b8-6d5b94734b59","block_type":"box","text":"into certain credit default swaps or similar instruments that may not be covered by these initiatives.","page_number":56,"box":{"x":70,"y":589,"width":711,"height":11}},{"id":"ec011e41-d0f6-41bb-9f93-ee72348f49c1","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":56,"box":{"x":102,"y":612,"width":757,"height":11}},{"id":"45649800-afbe-40bb-a996-8a6ca20a4727","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":56,"box":{"x":69,"y":627,"width":794,"height":11}},{"id":"8c48a560-9b3a-4ce9-889a-a04d3fffc497","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":56,"box":{"x":69,"y":642,"width":830,"height":11}},{"id":"7943536f-3fa8-4255-bda6-ca0203729945","block_type":"box","text":"settlement auction, together with the up-front or periodic payments previously received, may be less than the amount","page_number":56,"box":{"x":69,"y":657,"width":835,"height":11}},{"id":"c9036a06-de82-495e-a7eb-813f58681b7c","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":56,"box":{"x":70,"y":672,"width":817,"height":11}},{"id":"f1fa7ee1-e1c5-4091-89ab-11a72c5cf1da","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":56,"box":{"x":69,"y":687,"width":820,"height":11}},{"id":"5562b026-b948-40da-b8c0-5a6a17d1ea08","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":56,"box":{"x":68,"y":702,"width":833,"height":12}},{"id":"beadb3fc-adfa-4b22-b28a-523a4a6a8e3c","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":56,"box":{"x":69,"y":717,"width":837,"height":12}},{"id":"cca82e20-f633-4692-950c-d1ab4711056a","block_type":"box","text":"the event the ISDA Credit Derivatives Determinations Committee does not establish a cash settlement auction and","page_number":56,"box":{"x":68,"y":733,"width":820,"height":9}},{"id":"b81a9fe5-3250-4a5d-b37c-752dbfb7bfa5","block_type":"box","text":"identify the relevant deliverable securities or loans, the credit default swap buyer will have broad discretion to select","page_number":56,"box":{"x":70,"y":748,"width":828,"height":11}},{"id":"ee968a36-951c-4e20-adf7-5914886617c2","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":56,"box":{"x":68,"y":763,"width":815,"height":11}},{"id":"d985d7ae-ea4b-42cc-9f2b-49fdbb5e9e61","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":56,"box":{"x":68,"y":778,"width":814,"height":11}},{"id":"2a68ed13-2203-42b5-b9f2-72235d5d15d0","block_type":"box","text":"credit default swaps generally trade on the basis of theoretical pricing and valuation models, which may not","page_number":56,"box":{"x":69,"y":793,"width":766,"height":11}},{"id":"203797fd-8a64-487b-a83d-5f394506c579","block_type":"box","text":"accurately value such swap positions when established or when subsequently traded or unwound under actual market","page_number":56,"box":{"x":69,"y":808,"width":840,"height":11}},{"id":"3588e0bb-5300-4aa5-ae7a-6bbf0a1936d4","block_type":"box","text":"conditions.","page_number":56,"box":{"x":69,"y":823,"width":76,"height":9}},{"id":"3cfa37d4-af12-47db-a5ad-56524116f7ea","block_type":"box","text":"Dodd-Frank requires that certain index CDS be executed in regulated markets and submitted for clearing to","page_number":56,"box":{"x":102,"y":846,"width":762,"height":11}},{"id":"8b10574f-325b-45e3-9d90-bd582c64733c","block_type":"box","text":"regulated clearinghouses. See “—Derivatives — Regulation of Derivatives — Dodd-Frank Regulations” above. Other","page_number":56,"box":{"x":69,"y":861,"width":824,"height":11}},{"id":"e127817f-b91a-4af0-9b02-755d57dbffcd","block_type":"box","text":"single-name CDS and index CDS are permitted, although not required, to be cleared through regulated","page_number":56,"box":{"x":69,"y":876,"width":727,"height":11}},{"id":"932a350c-7d11-4844-aca6-ebde4404448b","block_type":"box","text":"clearinghouses. The Funds clear all credit default swaps that are subject to mandatory clearing and may voluntarily","page_number":56,"box":{"x":69,"y":891,"width":819,"height":12}},{"id":"812c703d-ebb4-4b15-aa4e-1dda4b690042","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":56,"box":{"x":69,"y":906,"width":764,"height":12}},{"id":"78b34609-1b21-4306-b65e-2c31c35a4430","block_type":"box","text":"II-18","page_number":56,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"79cd763a-30e9-40a8-ad54-6743afecbeb3","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":56,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"11ebaa6e-f004-4445-92f0-ec4342547581","block_type":"box","text":"counterparty risk with respect to the clearinghouse when entering into cleared single-name CDS and cleared index","page_number":57,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"decd384f-90b4-4bf8-a4a9-c42f2b236e2d","block_type":"box","text":"CDS. The Funds face significant counterparty risk with respect to their counterparties to non-cleared credit default","page_number":57,"box":{"x":69,"y":60,"width":813,"height":11}},{"id":"e96411e6-89f1-4c6b-bef0-671f11e37c9c","block_type":"box","text":"swaps and similar instruments. A Fund typically will enter into non-cleared credit default swaps and similar","page_number":57,"box":{"x":69,"y":75,"width":759,"height":11}},{"id":"bd533a90-708a-41fd-8c90-1c44500ed292","block_type":"box","text":"instruments with swap dealers and creditworthy entities that have substantial capital or that have provided the Fund","page_number":57,"box":{"x":70,"y":90,"width":828,"height":11}},{"id":"d71cf679-91f7-470c-852d-2ccb3248d754","block_type":"box","text":"with a third-party guaranty or other credit support.","page_number":57,"box":{"x":68,"y":105,"width":355,"height":11}},{"id":"c3a54d7f-846d-4ebc-a89e-55e23197757b","block_type":"box","text":"In certain instances, a Fund may enter into bespoke credit default swaps or similar instruments either as","page_number":57,"box":{"x":102,"y":128,"width":750,"height":11}},{"id":"3ff2fdf6-d9d8-4152-a5ad-8b7e152a4525","block_type":"box","text":"protection buyer or protection seller. While these contracts are similar in their operation to the market-standard credit","page_number":57,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"ae6939f2-3085-4489-974c-036e93f064ce","block_type":"box","text":"default swaps described above, they are less standardized and instead have bespoke or tailored features. For","page_number":57,"box":{"x":69,"y":158,"width":785,"height":11}},{"id":"5f91b74a-23c3-4fb4-8b9a-b995a7aee862","block_type":"box","text":"example, as compared to market-standard credit defaults, the range of “credit events” triggering settlement of such","page_number":57,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"822c3c54-fc61-45cb-8da4-349e4aac7bbd","block_type":"box","text":"bespoke contracts may be narrower or broader, any such triggered contracts are settled by physical delivery of the","page_number":57,"box":{"x":69,"y":188,"width":814,"height":12}},{"id":"1cfdf22d-98fb-4d7f-b676-4b4055493aee","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":57,"box":{"x":69,"y":203,"width":839,"height":12}},{"id":"e9041cc7-92c6-40d5-968e-c98831af1fe6","block_type":"box","text":"securities as the reference obligations and/or deliverable obligations.","page_number":57,"box":{"x":69,"y":218,"width":495,"height":12}},{"id":"ccec3cc2-dbca-4703-a206-dfab871cb10a","block_type":"box","text":"In addition, credit default swaps and similar instruments generally involve greater risks than if a Fund had","page_number":57,"box":{"x":102,"y":241,"width":752,"height":11}},{"id":"8ab6e88a-9de4-403f-a3d0-0125ea5af85e","block_type":"box","text":"invested in the reference obligation directly and are subject to significant credit risk, correlation risk, leverage risk,","page_number":57,"box":{"x":70,"y":256,"width":814,"height":12}},{"id":"d128df7b-c8ad-45cc-a87f-90c1d4d9a0ac","block_type":"box","text":"illiquidity risk and market risk. See “—Risk Factors in Derivatives” above.","page_number":57,"box":{"x":70,"y":272,"width":520,"height":11}},{"id":"a75e99c2-ac95-4939-ac16-709e62e066fa","block_type":"box","text":"Interest Rate Swaps, Floors and Caps.","page_number":57,"box":{"x":102,"y":294,"width":273,"height":11}},{"id":"604c2a23-edb4-46b0-9713-e10bd988419c","block_type":"box","text":"Certain Funds may enter into OTC derivatives in the form of interest rate","page_number":57,"box":{"x":381,"y":294,"width":515,"height":11}},{"id":"7ad658d2-50a2-4108-bb4b-aa822c815dc4","block_type":"box","text":"swaps and interest rate caps and floors. As described in further detail below, a Fund may enter into these","page_number":57,"box":{"x":69,"y":309,"width":755,"height":11}},{"id":"18e2a200-e9b3-4096-8779-3aa12dc555bc","block_type":"box","text":"transactions primarily to preserve a return or spread on a particular investment or portion of its holdings, as a","page_number":57,"box":{"x":68,"y":324,"width":788,"height":12}},{"id":"1ecfa792-0fda-45c2-b941-933a75e987bf","block_type":"box","text":"duration management technique, to protect against an increase in the price of securities a Fund anticipates","page_number":57,"box":{"x":69,"y":339,"width":768,"height":12}},{"id":"bbebfc6f-c00b-4261-998d-9aab80cf322a","block_type":"box","text":"purchasing at a later date, or for speculation to increase returns.","page_number":57,"box":{"x":70,"y":355,"width":461,"height":11}},{"id":"f4d1e211-1a06-419d-b6ac-9a12892064ce","block_type":"box","text":"Dodd-Frank requires that certain interest rate swaps be executed in regulated markets and submitted for","page_number":57,"box":{"x":102,"y":377,"width":748,"height":12}},{"id":"625d8aa1-8f86-4587-be9a-4a4602c1c234","block_type":"box","text":"clearing to regulated clearinghouses. See “—Regulation of Derivatives — Dodd-Frank Regulations” above. Other","page_number":57,"box":{"x":69,"y":392,"width":799,"height":12}},{"id":"a974b354-f1bb-4d12-a997-aad98228a18f","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":57,"box":{"x":70,"y":407,"width":829,"height":12}},{"id":"61659c45-fc37-410f-89b2-12bf0c6a7332","block_type":"box","text":"by the Funds are cleared. The Funds face counterparty risk with respect to the clearinghouse when entering into","page_number":57,"box":{"x":69,"y":423,"width":797,"height":11}},{"id":"0c6f29b6-54ec-4f75-9da1-5ba42f0e8f57","block_type":"box","text":"cleared interest rate swaps.","page_number":57,"box":{"x":69,"y":438,"width":198,"height":11}},{"id":"b45e4de4-a2c4-4990-9f9d-772bbd9cd61a","block_type":"box","text":"The Funds face significant counterparty risk with respect to their counterparties to non-cleared interest rate","page_number":57,"box":{"x":101,"y":460,"width":766,"height":12}},{"id":"3098a14e-77b8-4b99-be90-a86bebf73fe0","block_type":"box","text":"swaps and interest rate caps and floors. The typical counterparties for a Fund’s non-cleared interest rate derivatives","page_number":57,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"23e12c55-71be-47ae-89e8-342eb15263c5","block_type":"box","text":"transactions are swap dealers and other creditworthy entities that have substantial capital or that have provided the","page_number":57,"box":{"x":68,"y":491,"width":830,"height":11}},{"id":"a6961e4c-3ae9-4117-8f7e-29c164efd5c9","block_type":"box","text":"Fund with a third-party guaranty or other credit support. If the Fund’s counterparty defaults on such a transaction, a","page_number":57,"box":{"x":70,"y":506,"width":822,"height":11}},{"id":"57c82d4e-0cd0-410a-b452-69e7f3b99e47","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":57,"box":{"x":70,"y":521,"width":824,"height":11}},{"id":"7bccc743-796d-40a3-b55b-3835f63ab953","block_type":"box","text":"be successful in enforcing such remedies. The market for interest rate swaps is relatively liquid in comparison with","page_number":57,"box":{"x":69,"y":536,"width":819,"height":11}},{"id":"b6a120c6-42f4-4615-b8ff-f446d18b3b55","block_type":"box","text":"other similar instruments traded in the interbank market. A Fund may be limited in its ability to enter into certain","page_number":57,"box":{"x":69,"y":551,"width":801,"height":11}},{"id":"2cdf5473-2903-486e-bc3a-e6759264e6b4","block_type":"box","text":"interest rate derivatives due to applicable income tax requirements.","page_number":57,"box":{"x":70,"y":566,"width":480,"height":11}},{"id":"586cb9ff-7cc8-4263-b824-14e41cfe6cf2","block_type":"box","text":"Interest rate swaps are transactions in which each party makes periodic interest payments based on a fixed or","page_number":57,"box":{"x":102,"y":589,"width":790,"height":11}},{"id":"831e13d7-f2d3-4b53-8e04-562c3a31db80","block_type":"box","text":"variable interest rate, index or asset in return for periodic payments from its counterparty based on a different fixed","page_number":57,"box":{"x":68,"y":604,"width":825,"height":11}},{"id":"a2444b58-752e-47cc-b8bf-92c5727e5e5a","block_type":"box","text":"or variable interest rate, index or asset.","page_number":57,"box":{"x":69,"y":619,"width":280,"height":11}},{"id":"ea7f96af-160c-49f2-9e71-ba70f09104c1","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":57,"box":{"x":101,"y":642,"width":780,"height":11}},{"id":"ffd0f6a4-3b0d-4056-a8d6-b1f2cc5c50c7","block_type":"box","text":"predetermined interest rate, to receive payments of interest on a notional principal amount from the party selling","page_number":57,"box":{"x":70,"y":657,"width":805,"height":11}},{"id":"4afe26bc-58f5-4e07-ae56-7bd9ec3c28a0","block_type":"box","text":"such interest rate floor.","page_number":57,"box":{"x":69,"y":672,"width":165,"height":9}},{"id":"ad92a5ff-c8de-4d90-adf6-2fba2e763902","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":57,"box":{"x":101,"y":695,"width":780,"height":11}},{"id":"e573fdfe-8a8d-43b2-8484-097088b7e444","block_type":"box","text":"predetermined interest rate, to receive payments of interest on a notional principal amount from the party selling","page_number":57,"box":{"x":70,"y":710,"width":805,"height":11}},{"id":"331281d0-308b-4882-b8d3-75f11566435d","block_type":"box","text":"such interest rate cap.","page_number":57,"box":{"x":69,"y":725,"width":159,"height":11}},{"id":"38252552-c2da-4e22-8c57-66d04b248dc7","block_type":"box","text":"A Fund may enter into an interest rate swap to effectively exchange with another party their respective","page_number":57,"box":{"x":101,"y":748,"width":729,"height":11}},{"id":"ce85bfe6-b9d4-4959-b5f4-812e9b9182ac","block_type":"box","text":"commitments to pay or receive interest,","page_number":57,"box":{"x":69,"y":763,"width":282,"height":11}},{"id":"57af5856-bd00-4730-8523-d427a9c17478","block_type":"box","text":"e.g.","page_number":57,"box":{"x":359,"y":764,"width":24,"height":10}},{"id":"3d8ff001-590e-455c-84f9-2b4294426b8e","block_type":"box","text":", an exchange of fixed rate payments for floating rate payments. For","page_number":57,"box":{"x":386,"y":763,"width":482,"height":11}},{"id":"322770b4-b5c0-41a6-a079-200bea50dde0","block_type":"box","text":"example, if a Fund holds a mortgage-backed security with an interest rate that is reset only once each year, it may","page_number":57,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"c9343a0b-bcb7-4685-a650-103cce39543d","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":57,"box":{"x":69,"y":793,"width":823,"height":11}},{"id":"b094cc4f-94f0-427e-b72d-ab18cd32a804","block_type":"box","text":"This would enable a Fund to offset a decline in the value of the mortgage-backed security due to rising interest rates","page_number":57,"box":{"x":68,"y":808,"width":832,"height":11}},{"id":"bde4910d-80c0-490c-a0f5-56e61c649904","block_type":"box","text":"but would also limit its ability to benefit from falling interest rates. Conversely, if a Fund holds a mortgage-backed","page_number":57,"box":{"x":69,"y":823,"width":807,"height":12}},{"id":"a4eef0fe-874f-4aac-bbc5-181bd415a5de","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":57,"box":{"x":69,"y":839,"width":836,"height":11}},{"id":"a4f8d79f-af4c-4478-b5f0-2c01669725d7","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":57,"box":{"x":69,"y":853,"width":826,"height":12}},{"id":"7858a5ab-79ab-43b6-9f7e-48eef29c1d10","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":57,"box":{"x":69,"y":869,"width":840,"height":11}},{"id":"033165a3-420e-4bd8-afcf-d43cf7bfda3a","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":57,"box":{"x":69,"y":884,"width":810,"height":11}},{"id":"aee2b683-0964-4c1f-a5f5-031bae03cde6","block_type":"box","text":"year interest rates, but would preclude it from taking full advantage of rising interest rates.","page_number":57,"box":{"x":68,"y":899,"width":646,"height":11}},{"id":"f9dd240a-c639-4d4f-bb95-85e2eb663548","block_type":"box","text":"II-19","page_number":57,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"24073e7c-63f9-4b48-a41c-768e619a3899","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":57,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2614981c-bfd5-40f0-8cbd-7311f2e64eae","block_type":"box","text":"Gains from transactions in interest rate swaps distributed to shareholders will be taxable as ordinary income or,","page_number":58,"box":{"x":102,"y":45,"width":798,"height":11}},{"id":"f680e872-d17f-4033-afc5-eac3e66070a6","block_type":"box","text":"in certain circumstances, as long term capital gains to shareholders.","page_number":58,"box":{"x":70,"y":60,"width":490,"height":11}},{"id":"05f6eedb-70be-4c9f-a9f6-af3fd5b2c03d","block_type":"box","text":"Interest rate swaps and interest rate caps and floors may be subject to correlation risk, leverage risk, illiquidity","page_number":58,"box":{"x":102,"y":82,"width":791,"height":12}},{"id":"52f4a3c8-f89e-4af2-b052-cda4de6e0773","block_type":"box","text":"risk and market risk. See “—Risk Factors in Derivatives” above.","page_number":58,"box":{"x":69,"y":98,"width":454,"height":9}},{"id":"31cd6d16-aada-41fb-ba17-fd8febf2f437","block_type":"box","text":"Total Return Swaps.","page_number":58,"box":{"x":103,"y":120,"width":139,"height":11}},{"id":"1c89c24b-5e11-4546-b700-f8e638efc499","block_type":"box","text":"Total return swaps are contracts in which one party agrees to make periodic payments to","page_number":58,"box":{"x":249,"y":120,"width":634,"height":12}},{"id":"e70e2f20-0b44-42a0-924d-c0209f4a9838","block_type":"box","text":"the other party based on the return of the assets underlying the contract in exchange for periodic payments based on","page_number":58,"box":{"x":68,"y":135,"width":838,"height":12}},{"id":"85cff2e2-fcd3-4c73-8a5e-ff589ece14e3","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":58,"box":{"x":69,"y":150,"width":764,"height":12}},{"id":"1441ac16-56ca-4079-b60f-62968751f7b3","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":58,"box":{"x":69,"y":166,"width":791,"height":11}},{"id":"a29849f2-29cb-4d0e-b75a-51d0e8e15eb1","block_type":"box","text":"asset. The asset underlying the contract may include a specified security, basket of securities or securities indices.","page_number":58,"box":{"x":69,"y":181,"width":821,"height":11}},{"id":"e46a4ca4-5d9d-49d6-bef7-317cc463960e","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":58,"box":{"x":68,"y":196,"width":838,"height":11}},{"id":"98abb6bb-f4c5-4c37-ae48-369d7775ff54","block_type":"box","text":"“contracts for difference.”","page_number":58,"box":{"x":70,"y":211,"width":184,"height":9}},{"id":"8f0f58c9-c6a9-459a-a280-d5201851fe22","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":58,"box":{"x":101,"y":234,"width":770,"height":11}},{"id":"e032e968-9fdb-41d8-802b-793acbbbeb9c","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":58,"box":{"x":69,"y":249,"width":780,"height":11}},{"id":"27cb31e1-0d5b-458b-88c4-900b0d58a0be","block_type":"box","text":"required to deposit initial margin but the parties do not exchange the notional amount. As a result, total return swaps","page_number":58,"box":{"x":69,"y":264,"width":839,"height":11}},{"id":"b31a78c9-1aea-499e-b9fc-63b01219e2c5","block_type":"box","text":"may effectively add leverage to the Fund’s portfolio because the Fund would be subject to investment exposure on","page_number":58,"box":{"x":69,"y":279,"width":816,"height":11}},{"id":"103bcf6b-511a-4f3a-b3ed-4f607dcefa15","block_type":"box","text":"the notional amount of the swap.","page_number":58,"box":{"x":68,"y":294,"width":235,"height":11}},{"id":"f7d0832a-382a-4a0b-89c1-9d1adcef5af6","block_type":"box","text":"Total return swaps are subject to significant correlation risk, leverage risk, illiquidity risk, market risk and","page_number":58,"box":{"x":101,"y":317,"width":746,"height":11}},{"id":"3bc28038-6387-4fce-863b-9500adbadbf5","block_type":"box","text":"counterparty risk. See “—Risk Factors in Derivatives” above.","page_number":58,"box":{"x":69,"y":332,"width":433,"height":11}},{"id":"09bbe77f-9861-41f6-861e-d85029f4761b","block_type":"box","text":"Options.","page_number":58,"box":{"x":102,"y":355,"width":57,"height":11}},{"id":"4705e571-28b4-43af-8168-f05f18bcd8c6","block_type":"box","text":"Options on Securities and Securities Indices.","page_number":58,"box":{"x":102,"y":377,"width":319,"height":11}},{"id":"f845ca63-b478-41ec-8720-c9be38a0f51e","block_type":"box","text":"A Fund may engage in transactions in options on individual","page_number":58,"box":{"x":427,"y":377,"width":418,"height":12}},{"id":"7c7ffbb1-c471-4e64-a737-a157fa4e45f4","block_type":"box","text":"securities, baskets of securities or securities indices, or particular measurements of value or rates, such as an index","page_number":58,"box":{"x":69,"y":392,"width":838,"height":11}},{"id":"5ba374d1-0047-47f4-9d6c-f1ff23366caa","block_type":"box","text":"of the price of treasury securities or an index representative of short-term interest rates. Such investments may be","page_number":58,"box":{"x":69,"y":407,"width":820,"height":12}},{"id":"5204e005-e67e-4a6a-8b63-25872b8d8a91","block_type":"box","text":"made on exchanges and in the OTC markets. In general, exchange-traded options have standardized exercise prices","page_number":58,"box":{"x":69,"y":423,"width":826,"height":11}},{"id":"222bd0f0-0df4-4854-95d6-4664aef4b3c7","block_type":"box","text":"and expiration dates and require the parties to post margin against their obligations, and the performance of the","page_number":58,"box":{"x":69,"y":438,"width":806,"height":11}},{"id":"e84a9065-caab-4a42-90f2-e19022db24de","block_type":"box","text":"parties’ obligations in connection with such options is guaranteed by the exchange or a related clearing corporation.","page_number":58,"box":{"x":70,"y":453,"width":825,"height":11}},{"id":"ac480998-bbfc-4a47-a5ca-1b2ceaf9b9e6","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":58,"box":{"x":69,"y":468,"width":822,"height":11}},{"id":"401678c5-0a62-4fc9-9d2b-976ab709d097","block_type":"box","text":"risk. OTC options also involve greater illiquidity risk.","page_number":58,"box":{"x":69,"y":483,"width":366,"height":11}},{"id":"5aa65fe7-852f-49dc-b90e-c005dc1c18db","block_type":"box","text":"A Fund may also engage in transactions in options which have additional features that result in different","page_number":58,"box":{"x":101,"y":506,"width":743,"height":11}},{"id":"82f8a1e3-29d9-443a-be51-a9c2ec7a90ad","block_type":"box","text":"payment structures and/or expirations (commonly referred to as exotic options). For example, barrier options are","page_number":58,"box":{"x":70,"y":521,"width":804,"height":11}},{"id":"b544a3a0-a078-44d2-be3e-795bd42d969f","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":58,"box":{"x":69,"y":536,"width":827,"height":11}},{"id":"bf8b7dbf-8689-4196-9a30-18f0b4cd3ebf","block_type":"box","text":"more predetermined levels on or before expiration. Binary options are another example of exotic options which have","page_number":58,"box":{"x":69,"y":551,"width":827,"height":11}},{"id":"10e284e7-3905-4360-96d2-f18c765baf16","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":58,"box":{"x":69,"y":566,"width":812,"height":11}},{"id":"7e98f31e-ea9c-4b0e-9527-189796b5a12e","block_type":"box","text":"OTC markets.","page_number":58,"box":{"x":69,"y":581,"width":95,"height":9}},{"id":"13ab1bb8-4240-4f8f-a029-ad62b154463d","block_type":"box","text":"There are several risks associated with transactions in options on securities and indexes. For example, there are","page_number":58,"box":{"x":101,"y":604,"width":806,"height":11}},{"id":"b96aaa42-2b5c-49b7-ac96-db7b482b983d","block_type":"box","text":"significant differences between the securities and options markets that could result in an imperfect correlation","page_number":58,"box":{"x":69,"y":619,"width":791,"height":11}},{"id":"c36da660-6f20-4c36-8b85-c95e9f778429","block_type":"box","text":"between these markets, causing a given transaction not to achieve its objectives. In addition, a liquid market for","page_number":58,"box":{"x":69,"y":634,"width":801,"height":12}},{"id":"73983ed3-af9b-42d8-a774-5ec3639c2fa4","block_type":"box","text":"particular options, whether traded OTC or on a national securities exchange (“Exchange”) may be absent for reasons","page_number":58,"box":{"x":70,"y":649,"width":831,"height":12}},{"id":"dd148a78-fb25-4e00-a868-b014d38f1612","block_type":"box","text":"which include the following: there may be insufficient trading interest in certain options; restrictions may be imposed","page_number":58,"box":{"x":68,"y":664,"width":833,"height":12}},{"id":"dad94a76-20ad-4adc-a82a-777a48897075","block_type":"box","text":"by an Exchange on opening transactions or closing transactions or both; trading halts, suspensions or other","page_number":58,"box":{"x":69,"y":680,"width":769,"height":11}},{"id":"37cb903a-03df-4918-aafd-ed9e9a40927b","block_type":"box","text":"restrictions may be imposed with respect to particular classes or series of options or underlying securities; unusual","page_number":58,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"80fdcb0e-b87b-44f8-b876-9a5cb5712789","block_type":"box","text":"or unforeseen circumstances may interrupt normal operations on an Exchange; the facilities of an Exchange or the","page_number":58,"box":{"x":69,"y":710,"width":816,"height":11}},{"id":"bf2c28a1-3946-43b7-9fd8-e1f4c7c3a54a","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":58,"box":{"x":69,"y":725,"width":796,"height":11}},{"id":"3982abac-d92f-4295-863e-24858df9cd90","block_type":"box","text":"Exchanges could, for economic or other reasons, decide or be compelled at some future date to discontinue the","page_number":58,"box":{"x":70,"y":740,"width":798,"height":11}},{"id":"3445b44c-65d4-455d-b51f-aeb371723f7f","block_type":"box","text":"trading of options (or a particular class or series of options), in which event the market on that Exchange (or in that","page_number":58,"box":{"x":68,"y":755,"width":822,"height":11}},{"id":"6115f549-4493-4567-8da6-673ab2c4890b","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":58,"box":{"x":69,"y":770,"width":818,"height":12}},{"id":"8d2232f1-55ff-41f2-bdab-e0462be72440","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":58,"box":{"x":69,"y":785,"width":836,"height":12}},{"id":"1d43c396-bc84-462b-9ded-a4e834f7934e","block_type":"box","text":"terms.","page_number":58,"box":{"x":68,"y":801,"width":45,"height":9}},{"id":"2c63419a-464e-44b7-8ed4-e6eae52260ab","block_type":"box","text":"Each of the options exchanges has established limitations governing the maximum number of call or put options","page_number":58,"box":{"x":102,"y":823,"width":801,"height":12}},{"id":"92323a06-8bdf-4779-92d6-5228dc284fef","block_type":"box","text":"on the same asset that may be bought or written by a single investor, whether acting alone or in concert with others","page_number":58,"box":{"x":69,"y":839,"width":826,"height":11}},{"id":"ebd3013a-154d-4e9e-a053-d558575b5164","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":58,"box":{"x":69,"y":853,"width":823,"height":12}},{"id":"beb50d59-0933-4dac-b1b2-df027f2f7e66","block_type":"box","text":"more accounts or through one or more brokers). Under these limitations, option positions of all investment","page_number":58,"box":{"x":69,"y":869,"width":762,"height":11}},{"id":"ef158109-b459-487a-a742-ce219c5e2941","block_type":"box","text":"companies advised by the Manager are combined for purposes of these limits. Pursuant to these limitations, an","page_number":58,"box":{"x":69,"y":884,"width":798,"height":11}},{"id":"9cff9adf-a70b-4194-9913-d5d449abd083","block_type":"box","text":"II-20","page_number":58,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"80a26de0-ae2f-45ac-bd2f-89b1e9c79bfd","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":58,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"46ba25fe-bed4-4749-bfe3-3040b5b5cab8","block_type":"box","text":"exchange may order the liquidation of positions and may impose other sanctions or restrictions. These position limits","page_number":59,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"d5d370d5-5cd3-43ee-bfc4-1b099321e828","block_type":"box","text":"may restrict the number of listed options that a Fund may buy or sell.","page_number":59,"box":{"x":69,"y":60,"width":491,"height":11}},{"id":"82377dfb-4668-49ff-a670-59be6c6e42ed","block_type":"box","text":"Call Options.","page_number":59,"box":{"x":102,"y":83,"width":89,"height":10}},{"id":"b7ac3e3c-6805-4de4-9f35-13e5afafdfb2","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":59,"box":{"x":197,"y":82,"width":694,"height":12}},{"id":"c6852cb7-4360-40ed-b234-437d455914e0","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":59,"box":{"x":70,"y":98,"width":838,"height":11}},{"id":"c384e64f-b2e3-4a21-b051-72acb908b08d","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":59,"box":{"x":68,"y":113,"width":813,"height":11}},{"id":"2bce45a2-a4c7-409f-b66f-26343b0757bd","block_type":"box","text":"Index options are similar to options on securities except that, rather than taking or making delivery of securities","page_number":59,"box":{"x":70,"y":128,"width":795,"height":11}},{"id":"7336ecb1-06a7-4aa2-802c-6b7d2c3707e0","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":59,"box":{"x":69,"y":143,"width":807,"height":11}},{"id":"f745f143-8296-4129-a931-6708f1ac6929","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":59,"box":{"x":69,"y":158,"width":830,"height":11}},{"id":"504f801f-8139-4604-ac22-c2675399c770","block_type":"box","text":"of the option.","page_number":59,"box":{"x":69,"y":173,"width":93,"height":11}},{"id":"835d40f3-dce4-4b02-a6b7-87c42b9225a9","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":59,"box":{"x":101,"y":196,"width":794,"height":11}},{"id":"8f5e34a9-ead2-4e9d-bb28-7d748bf80325","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":59,"box":{"x":69,"y":211,"width":823,"height":11}},{"id":"a1e7a7ec-3747-4fb6-bf3a-1ed321c8f1da","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":59,"box":{"x":69,"y":226,"width":839,"height":11}},{"id":"1d411db2-c9f8-411e-b922-dfed440d33fa","block_type":"box","text":"illiquid investments under the Funds’ Liquidity Program (as defined below) (“liquid assets”) designated on the","page_number":59,"box":{"x":70,"y":241,"width":778,"height":11}},{"id":"7b9b0aba-fd26-4cb2-95c7-df3b8a325cb0","block_type":"box","text":"Manager’s or the sub-adviser’s books and records to the extent required by Commission guidelines.","page_number":59,"box":{"x":70,"y":256,"width":711,"height":12}},{"id":"0c5c313a-c318-488c-ba26-b55cd9ea7135","block_type":"box","text":"A Fund may write (","page_number":59,"box":{"x":101,"y":279,"width":130,"height":11}},{"id":"9fce9331-09dc-4eee-b11d-8bc701958a8c","block_type":"box","text":"i.e.","page_number":59,"box":{"x":233,"y":279,"width":20,"height":9}},{"id":"f630bc85-79c2-4fc0-a1ef-08a2de4d5dd6","block_type":"box","text":", sell) covered call options on the securities or instruments in which it may invest and to","page_number":59,"box":{"x":256,"y":279,"width":627,"height":11}},{"id":"fcacda34-00e4-4e67-bace-410505feb792","block_type":"box","text":"enter into closing purchase transactions with respect to certain of such options. A covered call option is an option in","page_number":59,"box":{"x":69,"y":294,"width":831,"height":11}},{"id":"0946e40b-a50a-4336-936a-69d2ed8fe3f0","block_type":"box","text":"which a Fund, in return for a premium, gives another party a right to buy specified securities owned by the Fund at a","page_number":59,"box":{"x":68,"y":309,"width":827,"height":11}},{"id":"a4762e1c-6621-45d1-b919-6ab048b21f03","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":59,"box":{"x":69,"y":324,"width":797,"height":12}},{"id":"f61bc5b8-9d9f-45a2-aea1-fb32f7e1854c","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":59,"box":{"x":69,"y":339,"width":823,"height":12}},{"id":"0d50dc03-5998-411e-aca1-75e2e580bac0","block_type":"box","text":"By writing covered call options, a Fund gives up the opportunity, while the option is in effect, to profit from any price","page_number":59,"box":{"x":70,"y":355,"width":823,"height":11}},{"id":"55490ee9-999d-4811-9c8a-65f978a3fc7b","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":59,"box":{"x":70,"y":370,"width":825,"height":11}},{"id":"166aeb32-4d2e-496e-b2b6-acdd90011f96","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":59,"box":{"x":69,"y":385,"width":800,"height":11}},{"id":"472448b2-c0a1-4cee-a00e-b546dcbbf100","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":59,"box":{"x":69,"y":400,"width":792,"height":11}},{"id":"6693f17c-7f97-4c62-bf97-7a5f3dc7bb03","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":59,"box":{"x":70,"y":415,"width":826,"height":11}},{"id":"192c7063-aea8-4d64-a60d-63e3a2d36738","block_type":"box","text":"a partial hedge to the extent of the premium received against the price of the underlying security declining.","page_number":59,"box":{"x":69,"y":430,"width":760,"height":11}},{"id":"abd45ff0-30b5-41eb-861e-94335574c7e2","block_type":"box","text":"A Fund may write","page_number":59,"box":{"x":101,"y":453,"width":120,"height":11}},{"id":"2f7322d1-ea29-406f-b20d-d3aa231aed36","block_type":"box","text":"(i.e.","page_number":59,"box":{"x":228,"y":453,"width":25,"height":11}},{"id":"0bf204f8-9cf2-4ca7-9021-36cccb140bbd","block_type":"box","text":", sell) uncovered call options on securities or instruments in which it may invest but that","page_number":59,"box":{"x":256,"y":453,"width":628,"height":11}},{"id":"5f0b54f7-4af1-4671-b331-dd36c7a7cf1c","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":59,"box":{"x":69,"y":468,"width":834,"height":11}},{"id":"f63db92b-aa9c-4f1f-9a99-88d7898d95d3","block_type":"box","text":"committing capital to the ownership of the underlying securities or instruments. When writing uncovered call options,","page_number":59,"box":{"x":69,"y":483,"width":830,"height":11}},{"id":"42474bed-6ce1-4812-a4d4-6947896e52f3","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":59,"box":{"x":69,"y":498,"width":825,"height":11}},{"id":"f6bfe5a4-a755-4e62-866f-237cfcb31fd7","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":59,"box":{"x":69,"y":513,"width":818,"height":11}},{"id":"48c23961-72ef-4869-a10d-556d2029e86e","block_type":"box","text":"During periods of declining securities prices or when prices are stable, writing uncovered calls can be a profitable","page_number":59,"box":{"x":70,"y":528,"width":806,"height":12}},{"id":"4a9e2578-f8cd-4c5c-a5bf-d930183a78c8","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":59,"box":{"x":69,"y":544,"width":839,"height":11}},{"id":"d57eacdf-4883-4b6b-a54d-c54e6da22ac9","block_type":"box","text":"there is no underlying security held by a Fund that can act as a partial hedge. Uncovered calls have speculative","page_number":59,"box":{"x":68,"y":559,"width":793,"height":11}},{"id":"755b1333-2397-4777-9205-2b099b57439f","block_type":"box","text":"characteristics and the potential for loss is unlimited. When an uncovered call is exercised, a Fund must purchase","page_number":59,"box":{"x":69,"y":574,"width":814,"height":11}},{"id":"fb7ea6f6-3877-44ce-a178-956541f710bd","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":59,"box":{"x":68,"y":589,"width":818,"height":11}},{"id":"6a2cd05e-d653-4ff5-adcf-698e024bde19","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":59,"box":{"x":68,"y":604,"width":825,"height":11}},{"id":"92f34b39-fc03-4a68-9cef-159f54072c03","block_type":"box","text":"exercise price, a Fund will lose the difference.","page_number":59,"box":{"x":69,"y":619,"width":326,"height":11}},{"id":"1f8b5489-86ea-4119-bb68-72d8f71f72f3","block_type":"box","text":"Put Options.","page_number":59,"box":{"x":102,"y":642,"width":85,"height":11}},{"id":"1af31faf-54df-474b-b595-7bfe017e4841","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":59,"box":{"x":194,"y":642,"width":712,"height":11}},{"id":"b2172647-c479-43b0-ad23-18e5a7dabc1c","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":59,"box":{"x":68,"y":657,"width":828,"height":11}},{"id":"0ded2a93-994f-426e-b285-fdb2437a4825","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":59,"box":{"x":69,"y":672,"width":816,"height":11}},{"id":"d24d4273-5644-4c1f-852c-7c92295a62f7","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":59,"box":{"x":70,"y":687,"width":820,"height":11}},{"id":"b96ed4a5-1027-427b-8da4-bc74a03086e0","block_type":"box","text":"instruments will be partially offset by the amount of the premium paid for the put option and any related transaction","page_number":59,"box":{"x":70,"y":702,"width":826,"height":11}},{"id":"471754f0-1d1f-460e-9945-0723cf79bab8","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":59,"box":{"x":69,"y":717,"width":815,"height":12}},{"id":"ee6e817f-6dc5-4e39-b3f7-e3f0cbf56818","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":59,"box":{"x":68,"y":732,"width":839,"height":11}},{"id":"959728ac-7d17-4d56-a61e-cca4a710dad0","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":59,"box":{"x":68,"y":748,"width":841,"height":11}},{"id":"ba22d734-0530-4b6c-a157-43df9e78ba09","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":59,"box":{"x":69,"y":763,"width":785,"height":11}},{"id":"67c86cae-feaf-4f7c-8adb-68d8f8a6231c","block_type":"box","text":"purchase uncovered put options.","page_number":59,"box":{"x":70,"y":778,"width":231,"height":11}},{"id":"89905972-fe78-444d-85c9-f6b830912c29","block_type":"box","text":"A Fund also may write (","page_number":59,"box":{"x":101,"y":801,"width":165,"height":11}},{"id":"43b0470f-3fb9-4174-81b5-9560f7e5a1a3","block_type":"box","text":"i.e.","page_number":59,"box":{"x":268,"y":801,"width":20,"height":9}},{"id":"3c462d6c-a299-4281-8b61-352c62f3645f","block_type":"box","text":", sell) put options on the types of securities or instruments that may be held by the","page_number":59,"box":{"x":291,"y":801,"width":591,"height":11}},{"id":"dcdd386d-0128-4959-8c32-650f5cec0c3c","block_type":"box","text":"Fund. A Fund will receive a premium for writing a put option, which increases the Fund’s return.","page_number":59,"box":{"x":70,"y":816,"width":675,"height":11}},{"id":"c44c1fd2-51e2-489a-8f3f-b7dbe8079b61","block_type":"box","text":"A Fund also may write (","page_number":59,"box":{"x":101,"y":839,"width":165,"height":10}},{"id":"80f97ae6-0e5e-42ba-baff-0751ec0ce7f2","block_type":"box","text":"i.e.","page_number":59,"box":{"x":268,"y":839,"width":20,"height":8}},{"id":"47f9ed24-9577-4474-893b-c40ccd2e0d38","block_type":"box","text":", sell) uncovered put options on securities or instruments in which it may invest but","page_number":59,"box":{"x":291,"y":839,"width":593,"height":10}},{"id":"95d7a14a-f326-4699-bb90-d99dd9ce7f23","block_type":"box","text":"with respect to which the Fund does not currently have a corresponding short position or has not deposited as","page_number":59,"box":{"x":68,"y":854,"width":789,"height":11}},{"id":"b653ae39-4c0a-4590-8ccf-9e1608d266de","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":59,"box":{"x":69,"y":869,"width":773,"height":11}},{"id":"505a9521-acd0-4b53-a227-7d3e128a8d27","block_type":"box","text":"uncovered put option. The principal reason for writing uncovered put options is to receive premium income and to","page_number":59,"box":{"x":69,"y":884,"width":807,"height":11}},{"id":"bb6ec6f5-0de5-4d8e-9d0f-f2830e2e826e","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":59,"box":{"x":69,"y":899,"width":835,"height":11}},{"id":"cdd0d7e0-9755-4ba2-b2ea-c63fae5db745","block_type":"box","text":"II-21","page_number":59,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"9f7c481d-d913-439b-acc6-79f110051223","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":59,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1e56025c-e335-4daf-b6a1-7e5725f66c03","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":60,"box":{"x":68,"y":45,"width":818,"height":11}},{"id":"75f89d5a-2acd-49e5-b439-c8bc8c008ca1","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":60,"box":{"x":68,"y":60,"width":800,"height":11}},{"id":"f7ffc13d-c7c1-4ca8-95d9-5c707f5b138b","block_type":"box","text":"expire worthless and a Fund will retain the premium and will not have to purchase the securities or instruments at","page_number":60,"box":{"x":69,"y":75,"width":814,"height":11}},{"id":"359d273e-2b88-4a31-a70c-2acd26b449b9","block_type":"box","text":"the exercise price.","page_number":60,"box":{"x":68,"y":90,"width":130,"height":11}},{"id":"a275c545-d6bb-4c2a-b68b-bf291b43d62a","block_type":"box","text":"Options on Government National Mor tgage Association (“GNMA”) Cer tificates.","page_number":60,"box":{"x":102,"y":113,"width":556,"height":11}},{"id":"b77d1ab3-d9d0-4961-86d4-14842734462c","block_type":"box","text":"The following information relates","page_number":60,"box":{"x":664,"y":113,"width":232,"height":11}},{"id":"e973393e-a666-4501-bd06-602ba22e1e31","block_type":"box","text":"to the unique characteristics of options on GNMA Certificates. Since the remaining principal balance of GNMA","page_number":60,"box":{"x":68,"y":128,"width":784,"height":11}},{"id":"16b73a34-5c49-4456-a5c3-3eed2e068455","block_type":"box","text":"Certificates declines each month as a result of mortgage payments, a Fund, as a writer of a GNMA call holding GNMA","page_number":60,"box":{"x":69,"y":143,"width":840,"height":11}},{"id":"d453d5c0-b59b-42a3-82b5-73ffc9d10f77","block_type":"box","text":"Certificates as “cover” to satisfy its delivery obligation in the event of exercise, may find that the GNMA Certificates","page_number":60,"box":{"x":69,"y":158,"width":827,"height":11}},{"id":"a39ebe7f-2e11-4431-a5ae-5c14c1250039","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":60,"box":{"x":70,"y":173,"width":781,"height":11}},{"id":"681f3069-d4a3-4ce3-ab2d-0ae617bd8aab","block_type":"box","text":"purchase additional GNMA Certificates from the same pool (if obtainable) or other GNMA Certificates in the cash","page_number":60,"box":{"x":70,"y":188,"width":803,"height":11}},{"id":"ebef714c-9a9f-4082-80d7-a58a6236a3a3","block_type":"box","text":"market in order to maintain its “cover.”","page_number":60,"box":{"x":69,"y":204,"width":277,"height":8}},{"id":"894f185b-c1dc-4468-a48b-03795e61af1c","block_type":"box","text":"A GNMA Certificate held by a Fund to cover an option position in any but the nearest expiration month may cease","page_number":60,"box":{"x":101,"y":226,"width":807,"height":11}},{"id":"263a8e4d-b0ac-4ccf-b2b8-13c2e43ea6f7","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":60,"box":{"x":68,"y":241,"width":835,"height":11}},{"id":"8060182a-cf25-4fd9-8edc-004221d3a35d","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":60,"box":{"x":69,"y":256,"width":821,"height":12}},{"id":"45dad557-69a5-4caa-a3f5-ca5f01d845a7","block_type":"box","text":"the Fund will either enter into a closing purchase transaction or replace such Certificate with a certificate that","page_number":60,"box":{"x":68,"y":271,"width":784,"height":12}},{"id":"1648f605-dcb2-4005-812c-fc60b7881486","block_type":"box","text":"represents cover. When a Fund closes its position or replaces such Certificate, it may realize an unanticipated loss","page_number":60,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"b85afe35-a8bc-450d-b410-d6dcee0e3928","block_type":"box","text":"and incur transaction costs.","page_number":60,"box":{"x":69,"y":302,"width":197,"height":9}},{"id":"ce01935d-7360-44bd-871b-807e7914e06b","block_type":"box","text":"Options on Swaps (“Swaptions”).","page_number":60,"box":{"x":102,"y":324,"width":235,"height":11}},{"id":"12e2d3b6-9665-4eb7-b30e-705c6a0022a7","block_type":"box","text":"A swaption gives a counterparty the option (but not the obligation) to enter into","page_number":60,"box":{"x":343,"y":325,"width":563,"height":11}},{"id":"11f9ff1c-eef3-4241-a20f-d86015f3772d","block_type":"box","text":"a new swap agreement or to shorten, extend, cancel or otherwise modify an existing swap agreement, at a","page_number":60,"box":{"x":69,"y":339,"width":763,"height":12}},{"id":"865471a6-298b-4a70-85a4-0a263db95fde","block_type":"box","text":"designated future time on specified terms. A Fund may write (","page_number":60,"box":{"x":69,"y":355,"width":439,"height":11}},{"id":"6ac7601f-3e68-4f62-8604-6a51d3d51542","block_type":"box","text":"i.e.","page_number":60,"box":{"x":510,"y":355,"width":20,"height":9}},{"id":"c850ba7a-2a68-4a64-8088-8e1c59ee0516","block_type":"box","text":", sell) and purchase put and call swaptions.","page_number":60,"box":{"x":533,"y":355,"width":309,"height":11}},{"id":"364bbd6d-5b31-469c-97fa-fc952b2029af","block_type":"box","text":"Depending on the terms of the particular option agreement, a Fund will generally incur a greater degree of risk when","page_number":60,"box":{"x":70,"y":370,"width":826,"height":11}},{"id":"6519b9f4-8d4b-42e0-8636-ab065c9cbf7c","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":60,"box":{"x":70,"y":385,"width":793,"height":11}},{"id":"c066517a-0357-4216-9b8d-1dfecad49b85","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":60,"box":{"x":70,"y":400,"width":802,"height":11}},{"id":"0e6c76ce-9ac8-44eb-baac-67fa7b00d3be","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":60,"box":{"x":68,"y":415,"width":836,"height":11}},{"id":"b8b4f638-3539-4b15-ae50-ba4b0f59f706","block_type":"box","text":"the underlying agreement and the potential for loss may be unlimited. Certain swaptions are permitted, although not","page_number":60,"box":{"x":68,"y":430,"width":832,"height":11}},{"id":"4eddea84-241b-40e2-8257-d5596642c8c8","block_type":"box","text":"required, to be cleared.","page_number":60,"box":{"x":69,"y":446,"width":165,"height":10}},{"id":"08312217-db7c-4e91-b1d1-5fe4eb84cabf","block_type":"box","text":"A Fund will likely enter into these transactions to preserve a return or spread on a particular investment or","page_number":60,"box":{"x":101,"y":468,"width":760,"height":11}},{"id":"2ca8fe47-53c3-4b83-b644-42bb0142eb7d","block_type":"box","text":"portion of its portfolio or to protect against any increase in the price of securities the Fund anticipates purchasing at","page_number":60,"box":{"x":70,"y":483,"width":830,"height":11}},{"id":"d118e062-1416-4804-88c8-e207c662f524","block_type":"box","text":"a later date. A Fund generally will use these transactions for hedging purposes, not for speculation.","page_number":60,"box":{"x":69,"y":498,"width":706,"height":11}},{"id":"ff72f63a-78da-4bfc-a9c2-6a6fd90a3820","block_type":"box","text":"Swaptions may be subject to correlation risk, leverage risk, illiquidity risk and market risk. See “—Risk Factors in","page_number":60,"box":{"x":102,"y":521,"width":805,"height":11}},{"id":"539d3f35-6d4d-4b4b-b8f0-59f53a6f8c6f","block_type":"box","text":"Derivatives” above.","page_number":60,"box":{"x":70,"y":536,"width":135,"height":9}},{"id":"a3961ed1-a54c-469b-bc8c-1a336051ef49","block_type":"box","text":"FLEX Options.","page_number":60,"box":{"x":102,"y":559,"width":96,"height":11}},{"id":"98f4e20f-8b76-4c05-ae9f-4e6c0cc54a79","block_type":"box","text":"FLEX Options are customized option contracts available through national securities exchanges that","page_number":60,"box":{"x":206,"y":559,"width":702,"height":11}},{"id":"8e95a2d1-ffad-4192-9af5-bb6f8a678377","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":60,"box":{"x":69,"y":574,"width":839,"height":11}},{"id":"2caf1f47-71c8-45be-b2d0-46cf8b5df30f","block_type":"box","text":"securities exchange. FLEX Options provide investors with the ability to customize assets referenced by the options,","page_number":60,"box":{"x":69,"y":589,"width":818,"height":11}},{"id":"abbf3931-3b53-46b0-8921-7419337fd86e","block_type":"box","text":"exercise prices, exercise styles (","page_number":60,"box":{"x":69,"y":604,"width":231,"height":11}},{"id":"b82d80ce-43a0-4ba6-b752-7e25dfb1ce6d","block_type":"box","text":"i.e.","page_number":60,"box":{"x":302,"y":604,"width":20,"height":9}},{"id":"d2b654f1-083c-45bc-830c-d716be15ce80","block_type":"box","text":", American-style, exercisable any time prior to the expiration date, or European","page_number":60,"box":{"x":325,"y":604,"width":561,"height":11}},{"id":"c38e5ccc-3601-42ba-95b4-53376dd3ecfa","block_type":"box","text":"style, exercisable only on the option expiration date) and expiration dates, while achieving price discovery in","page_number":60,"box":{"x":69,"y":619,"width":768,"height":11}},{"id":"d492f636-92f4-4303-b57e-5567ecbbe6b6","block_type":"box","text":"competitive, transparent auctions markets and avoiding the counterparty exposure of OTC options positions. Each","page_number":60,"box":{"x":69,"y":634,"width":812,"height":12}},{"id":"9a499cad-c1c2-4662-b3c7-a271d892a67a","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":60,"box":{"x":69,"y":649,"width":830,"height":11}},{"id":"56e68de6-988f-438d-8513-8482ad936bf2","block_type":"box","text":"reference asset at the strike price. A Fund’s portfolio may include several types of FLEX Options, including both","page_number":60,"box":{"x":69,"y":664,"width":792,"height":12}},{"id":"cab24c9d-1fd0-4b4e-b075-740988788172","block_type":"box","text":"purchased and written put and call options (as further described below). The FLEX Options are all European style","page_number":60,"box":{"x":70,"y":680,"width":802,"height":11}},{"id":"e994cacf-87fb-41fa-a1cb-a287c2f741a0","block_type":"box","text":"options, which means that they are exercisable at a predetermined specified price (the “strike price”) only on the","page_number":60,"box":{"x":69,"y":695,"width":806,"height":11}},{"id":"b5ad8141-0580-4444-9a00-76f5f8e18646","block_type":"box","text":"FLEX Option’s expiration date.","page_number":60,"box":{"x":70,"y":710,"width":211,"height":11}},{"id":"074739d8-a7a9-4ee3-bf56-b77f357f3702","block_type":"box","text":"The OCC guarantees performance by each of the counterparties to the FLEX Options, becoming the “buyer for","page_number":60,"box":{"x":101,"y":732,"width":783,"height":12}},{"id":"1fb1eddb-eb87-4303-a12a-2fb432241b35","block_type":"box","text":"every seller and the seller for every buyer”, reducing counterparty risk for clearing members and options traders.","page_number":60,"box":{"x":69,"y":748,"width":802,"height":11}},{"id":"970ffb3a-32b6-4846-87d3-42e958032b52","block_type":"box","text":"Although guaranteed for settlement by the OCC, FLEX Options are still subject to counterparty risk with the OCC and","page_number":60,"box":{"x":68,"y":763,"width":826,"height":11}},{"id":"c742a5c3-9b31-4cb0-a397-21c29300bfac","block_type":"box","text":"subject to the risk that the OCC may fail to perform the settlement of the FLEX Options due to bankruptcy or other","page_number":60,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"c0e6cfe0-4ac2-401f-a481-6b3605ffca69","block_type":"box","text":"adverse reasons. A Fund bears the risk that the OCC will be unable or unwilling to perform its obligations under the","page_number":60,"box":{"x":69,"y":793,"width":822,"height":11}},{"id":"ca1a001f-8ab2-4192-aa59-ddbf2b68a223","block_type":"box","text":"FLEX Options contracts.","page_number":60,"box":{"x":70,"y":808,"width":166,"height":11}},{"id":"65433576-dcf8-4375-bd8a-d5d2b2648b8d","block_type":"box","text":"Subject to determination by the Securities Committee of the OCC, adjustments may be made to the FLEX","page_number":60,"box":{"x":102,"y":831,"width":748,"height":11}},{"id":"fe5fd947-7f20-4f99-84b9-2549ee51ca4f","block_type":"box","text":"Options for certain events (collectively, “Corporate Actions”) specified in the OCC’s by-laws and rules: certain stock","page_number":60,"box":{"x":69,"y":846,"width":822,"height":11}},{"id":"d4cb38f3-b8cb-4890-81d7-82a5e60bf79e","block_type":"box","text":"dividends or distributions, stock splits, reverse stock splits, rights offerings, distributions, reorganizations,","page_number":60,"box":{"x":69,"y":861,"width":759,"height":11}},{"id":"09357aa1-2aad-438d-b463-0ebb0a4f803a","block_type":"box","text":"recapitalizations, or reclassifications with respect to an underlying security, or a merger, consolidation, dissolution or","page_number":60,"box":{"x":69,"y":876,"width":833,"height":11}},{"id":"346133e2-1c56-4628-a2eb-6c3c55e48d99","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":60,"box":{"x":70,"y":891,"width":829,"height":12}},{"id":"8d0be407-97ad-4844-ae9d-611354261549","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":60,"box":{"x":69,"y":906,"width":821,"height":12}},{"id":"5b978471-009c-4354-be72-cc7a9de8bfdb","block_type":"box","text":"II-22","page_number":60,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ea2033a0-d8ca-4c0f-8bfe-e7c0ecd4f15a","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":60,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"96af1664-f308-4ada-94a8-3bcdcfd026db","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":61,"box":{"x":68,"y":45,"width":835,"height":11}},{"id":"da64eeb7-5bd8-49bd-a625-e3018e018662","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":61,"box":{"x":68,"y":60,"width":829,"height":11}},{"id":"0ab5bfb4-f77d-4c3f-9694-faf7253c8ea4","block_type":"box","text":"the affected options, the maintenance of a fair and orderly market in the affected options, consistency of","page_number":61,"box":{"x":68,"y":75,"width":753,"height":11}},{"id":"dc41051a-8797-4c1b-a007-bcf2a91ce0c6","block_type":"box","text":"interpretation and practice, efficiency of exercise settlement procedures, and the coordination with other clearing","page_number":61,"box":{"x":70,"y":90,"width":806,"height":11}},{"id":"75247807-25ee-460b-833c-6814594c267b","block_type":"box","text":"agencies of the clearance and settlement of transactions in the underlying interest.","page_number":61,"box":{"x":69,"y":105,"width":593,"height":11}},{"id":"befa7560-fd39-46ab-baa4-a8eeccccc744","block_type":"box","text":"Cer tain Considerations Regarding Options","page_number":61,"box":{"x":135,"y":128,"width":298,"height":11}},{"id":"6d2da73a-7d6a-4ccb-99e9-ce55116e28c7","block_type":"box","text":". The FLEX Options in which each Fund may invest will be options","page_number":61,"box":{"x":435,"y":128,"width":461,"height":11}},{"id":"8718204e-35ac-4ba4-98be-0d92fb973608","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":61,"box":{"x":102,"y":143,"width":768,"height":11}},{"id":"15b0e7b2-07fc-4684-a1ed-6fb63d2a6139","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":61,"box":{"x":102,"y":158,"width":775,"height":11}},{"id":"7c7bd3b0-16c7-45bf-ab59-5454c71f6273","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":61,"box":{"x":102,"y":173,"width":777,"height":11}},{"id":"5b11f64b-070a-4c9e-8090-0b4597a51e0a","block_type":"box","text":"reflect, among other things, the time remaining until expiration (the end of the Outcome Period), the relationship","page_number":61,"box":{"x":102,"y":188,"width":799,"height":12}},{"id":"8da22f60-3695-42f4-ae9e-d1d1b17a6c1d","block_type":"box","text":"of the exercise price to the market price of the Reference Asset, and general market conditions. Options that","page_number":61,"box":{"x":102,"y":203,"width":777,"height":12}},{"id":"d8196aae-265b-4bf9-9432-c08aab95bc79","block_type":"box","text":"expire unexercised have no value.","page_number":61,"box":{"x":101,"y":219,"width":240,"height":10}},{"id":"a44599d2-1949-4da7-85f3-12becde5a99a","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":61,"box":{"x":134,"y":241,"width":747,"height":11}},{"id":"4db9c1d5-03f9-4205-80a5-e8268a3433c9","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":61,"box":{"x":101,"y":256,"width":792,"height":11}},{"id":"ffaaea80-3b94-4dc5-90bb-c28627140b71","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":61,"box":{"x":101,"y":271,"width":786,"height":12}},{"id":"dcae68cc-8d27-482e-8c85-482a9a7ef4eb","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":61,"box":{"x":101,"y":286,"width":798,"height":12}},{"id":"d339a794-2b61-47e7-8ea9-62d791f34177","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":61,"box":{"x":102,"y":302,"width":802,"height":11}},{"id":"55791f2d-9937-4b38-b014-02e8cc24b152","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":61,"box":{"x":102,"y":317,"width":800,"height":11}},{"id":"1ffc1a80-8ec8-4275-a28c-f2e5b802a8bc","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":61,"box":{"x":102,"y":332,"width":774,"height":11}},{"id":"d93d3bf3-3d15-4f7c-8eb9-f59688a68e1b","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":61,"box":{"x":102,"y":347,"width":793,"height":11}},{"id":"4aaf7913-e817-44ae-add8-f0a74f19930c","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":61,"box":{"x":102,"y":362,"width":764,"height":11}},{"id":"cc3aabe4-d0f3-4e41-ae68-101baeda33b1","block_type":"box","text":"number of shares of the ETF in exchange for the strike price.","page_number":61,"box":{"x":102,"y":377,"width":430,"height":12}},{"id":"af863d63-1e71-4670-843a-102730bbeeeb","block_type":"box","text":"Although each Fund will generally utilize FLEX Options that are physically settled, a Fund may also utilize","page_number":61,"box":{"x":134,"y":400,"width":740,"height":11}},{"id":"c155d57e-4c9f-42c7-a7e3-ec5f0beb14df","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":61,"box":{"x":102,"y":415,"width":787,"height":11}},{"id":"1b5d16e9-8611-4edc-a33c-bc758dd10ac2","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":61,"box":{"x":102,"y":430,"width":790,"height":11}},{"id":"039bd038-30fd-4d45-a5bd-1460fd7f1df5","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":61,"box":{"x":102,"y":445,"width":793,"height":12}},{"id":"5c1a891f-0b27-450b-b5a3-bbb365c6980f","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":61,"box":{"x":102,"y":460,"width":802,"height":12}},{"id":"763d0881-b681-42a2-a452-6db567aaee34","block_type":"box","text":"multiple (“multiplier”), which determines the total value for each point of such difference.","page_number":61,"box":{"x":102,"y":475,"width":635,"height":12}},{"id":"d29051a3-7977-48e1-b18b-8e428b5641b7","block_type":"box","text":"Risks of Options on the Reference Assets","page_number":61,"box":{"x":135,"y":498,"width":297,"height":11}},{"id":"cbbc2d4c-bb45-40e6-80e2-2b523ec1f388","block_type":"box","text":". If a Fund has purchased an option and exercises it before the","page_number":61,"box":{"x":433,"y":498,"width":448,"height":11}},{"id":"88f85d2d-4096-4dfa-8ffc-d51889afe7c4","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":61,"box":{"x":101,"y":513,"width":777,"height":12}},{"id":"b349d02b-21ec-467d-a81a-c28234855859","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":61,"box":{"x":101,"y":528,"width":753,"height":12}},{"id":"591c5bfe-8876-467e-a865-2f0d69052fd0","block_type":"box","text":"required to pay the difference between the closing Reference Asset value and the exercise price of the option","page_number":61,"box":{"x":102,"y":543,"width":780,"height":12}},{"id":"b2c94d8c-3064-473e-a414-da40d04cff16","block_type":"box","text":"(times the applicable multiplier) to the assigned writer.","page_number":61,"box":{"x":102,"y":559,"width":387,"height":11}},{"id":"f19cf5b0-5a8e-4985-ac2c-ae16c918a106","block_type":"box","text":"Foreign Exchange Transactions.","page_number":61,"box":{"x":102,"y":582,"width":222,"height":11}},{"id":"de6be673-8e2d-4a14-9d76-58d8f68c5ac1","block_type":"box","text":"A Fund may enter into spot foreign exchange transactions, forward foreign exchange transactions (“FX forwards”)","page_number":61,"box":{"x":101,"y":604,"width":807,"height":11}},{"id":"c238e9af-d59d-430a-b275-9a14914d8e14","block_type":"box","text":"and currency swaps, purchase and sell currency options, currency futures and related options thereon (collectively,","page_number":61,"box":{"x":69,"y":619,"width":818,"height":11}},{"id":"80b9f57e-2436-45ca-89f2-b35724dd1082","block_type":"box","text":"“Currency Instruments”) for purposes of hedging against the decline in the value of currencies in which its portfolio","page_number":61,"box":{"x":70,"y":634,"width":821,"height":12}},{"id":"b34b1f76-6c78-41d1-8ef4-0c56c578fe7f","block_type":"box","text":"holdings are denominated against the U.S. dollar or, with respect to certain Funds, to seek to enhance returns.","page_number":61,"box":{"x":69,"y":649,"width":792,"height":12}},{"id":"fb451bf6-1c13-4b9e-8c5e-ec386c137f5d","block_type":"box","text":"Such transactions could be effected to hedge with respect to foreign dollar denominated securities owned by a","page_number":61,"box":{"x":102,"y":672,"width":790,"height":11}},{"id":"a7406d70-ce1e-49f8-a656-e9ae629f645c","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":61,"box":{"x":70,"y":687,"width":830,"height":11}},{"id":"8d73931d-2df8-49db-b406-b5e2a7992483","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":61,"box":{"x":69,"y":702,"width":808,"height":12}},{"id":"6ff05417-e0de-40dd-b5a3-900e11a98033","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":61,"box":{"x":69,"y":717,"width":824,"height":12}},{"id":"df9b6432-197e-4a13-8dee-b77797c6af9d","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":61,"box":{"x":68,"y":732,"width":823,"height":12}},{"id":"80b3908b-af6e-4e9b-9582-a7895052f0db","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":61,"box":{"x":68,"y":748,"width":821,"height":11}},{"id":"4cfeb89a-4037-4a39-bee0-8fd438e10b75","block_type":"box","text":"part, the cost of acquiring such a put option, the Fund may also sell a call option which, if exercised, requires it to","page_number":61,"box":{"x":70,"y":763,"width":813,"height":11}},{"id":"97c7db6f-6b1b-4cae-acc0-1eccb73bf0b1","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":61,"box":{"x":69,"y":778,"width":813,"height":11}},{"id":"f13d8e59-d7b0-459d-8c17-c70d7f299320","block_type":"box","text":"selling such a call option in this illustration, the Fund gives up the opportunity to profit without limit from increases in","page_number":61,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"09435cc8-8137-4c52-baa9-6bb5fe552057","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":61,"box":{"x":68,"y":808,"width":836,"height":11}},{"id":"c3f9cbd5-7973-462a-a146-6563d12eb0a0","block_type":"box","text":"transactions. Certain Funds have a fundamental investment restriction that restricts currency option strategies.","page_number":61,"box":{"x":68,"y":823,"width":794,"height":12}},{"id":"39682d27-92ba-4105-ac7d-a21ebbee46c1","block_type":"box","text":"Hedging transactions involving Currency Instruments involve substantial risks, including correlation risk. A Fund’s","page_number":61,"box":{"x":102,"y":846,"width":805,"height":11}},{"id":"238d96a5-ca24-4b41-8370-2794a23758a9","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":61,"box":{"x":69,"y":861,"width":828,"height":11}},{"id":"9dbf8d48-55f6-4438-9dc7-c3c947a12574","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":61,"box":{"x":69,"y":876,"width":819,"height":11}},{"id":"a003916b-341d-491a-a681-988034dd01ce","block_type":"box","text":"Moreover, although Currency Instruments will be used with the intention of hedging against adverse currency","page_number":61,"box":{"x":70,"y":891,"width":773,"height":12}},{"id":"2ea60954-5bb1-40e7-9cd6-cd291917a5e2","block_type":"box","text":"movements, transactions in Currency Instruments involve the risk that anticipated currency movements will not be","page_number":61,"box":{"x":69,"y":906,"width":814,"height":12}},{"id":"fd92bf93-e79a-4b75-9ffc-6b5c2ecaa914","block_type":"box","text":"II-23","page_number":61,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e9943873-9c5a-43ff-9fb7-49234152e2ae","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":61,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c2b0451e-8a38-4591-bf3a-1b444f2eb3e3","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":62,"box":{"x":69,"y":45,"width":796,"height":11}},{"id":"9a0df0ad-fc64-49f9-9ef4-b84f13d7ad87","block_type":"box","text":"against anticipated currency movements that do not occur, the Fund may realize losses and decrease its total return.","page_number":62,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"c1e861e6-d244-4f72-bb88-5ec7f32725cc","block_type":"box","text":"Furthermore, a Fund will only engage in hedging activities from time to time and may not be engaging in hedging","page_number":62,"box":{"x":70,"y":75,"width":798,"height":11}},{"id":"0454c682-6413-4e07-95e9-447eaad2a45b","block_type":"box","text":"activities when movements in currency exchange rates actually occur.","page_number":62,"box":{"x":69,"y":90,"width":493,"height":11}},{"id":"cd728795-bc54-460b-93dd-b8737e973abc","block_type":"box","text":"In connection with its trading in forward foreign currency contracts, a Fund will contract with a foreign or","page_number":62,"box":{"x":102,"y":113,"width":738,"height":11}},{"id":"4a348587-37a2-4830-8c74-2abcf05b0af3","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":62,"box":{"x":69,"y":128,"width":814,"height":11}},{"id":"59fd3993-169e-42b6-ad9d-7f341747edc6","block_type":"box","text":"particular currency. There are no limitations on daily price moves in such forward contracts, and banks and dealers","page_number":62,"box":{"x":70,"y":143,"width":819,"height":11}},{"id":"548cabc7-1328-4ed0-adcd-9a5334c2358d","block_type":"box","text":"are not required to continue to make markets in such contracts. There have been periods during which certain banks","page_number":62,"box":{"x":69,"y":158,"width":834,"height":11}},{"id":"32f6df10-24ad-405a-b32c-5365bd8f1f4c","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":62,"box":{"x":69,"y":173,"width":797,"height":11}},{"id":"15d177c7-b67e-4798-8853-2ef7bed64de7","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":62,"box":{"x":69,"y":188,"width":794,"height":11}},{"id":"1218de3a-9607-4aec-9b3d-66d8f9374e42","block_type":"box","text":"Governmental imposition of currency controls might limit any such forward contract trading. With respect to its trading","page_number":62,"box":{"x":69,"y":203,"width":841,"height":12}},{"id":"40d14c22-8c9c-451f-8619-6be537a875ab","block_type":"box","text":"of forward contracts, if any, a Fund will be subject to counterparty risk. Any such failure to perform by a counterparty","page_number":62,"box":{"x":69,"y":218,"width":831,"height":12}},{"id":"0dfb573e-92ba-4b34-aad8-d08c40987094","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":62,"box":{"x":68,"y":234,"width":805,"height":11}},{"id":"f4dc9a30-d760-47d1-86b1-64585e6e09b4","block_type":"box","text":"then market price and could result in a loss to the Fund.","page_number":62,"box":{"x":68,"y":249,"width":401,"height":11}},{"id":"1f4d0200-bd4f-46c4-aebc-ffdf99088f7c","block_type":"box","text":"It may not be possible for a Fund to hedge against currency exchange rate movements, even if correctly","page_number":62,"box":{"x":102,"y":271,"width":738,"height":12}},{"id":"657d853f-51be-4ec2-9030-b1b9a464e2c6","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":62,"box":{"x":69,"y":287,"width":837,"height":11}},{"id":"1e81a2a0-a4ea-47b6-8a64-b47d0ff8ddd8","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":62,"box":{"x":69,"y":302,"width":837,"height":11}},{"id":"27fff496-8b76-4e00-a534-bc73e7f32a6e","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":62,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"fbb8b968-59f6-4de6-8d20-d755c9cdca80","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":62,"box":{"x":68,"y":332,"width":829,"height":11}},{"id":"f6643dc6-72aa-47cf-b938-66cb80a0b360","block_type":"box","text":"the currencies involved, the length of the contract period and the market conditions then prevailing. Since","page_number":62,"box":{"x":68,"y":347,"width":753,"height":11}},{"id":"21daa194-7d1b-4fbd-a840-0354fb8a043e","block_type":"box","text":"transactions in foreign currency exchange usually are conducted on a principal basis, no fees or commissions are","page_number":62,"box":{"x":68,"y":362,"width":811,"height":11}},{"id":"8586668d-fc79-4199-b991-6d8c9ef7e00c","block_type":"box","text":"involved.","page_number":62,"box":{"x":70,"y":377,"width":59,"height":9}},{"id":"22758110-9159-4ee6-970b-207e235eb115","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":62,"box":{"x":101,"y":400,"width":803,"height":11}},{"id":"af26ecee-30fa-4606-8abc-23115d947b30","block_type":"box","text":"receivables for unsettled securities sales), or has committed to purchase or anticipates purchasing, which are","page_number":62,"box":{"x":69,"y":415,"width":785,"height":11}},{"id":"1b2e2a32-103c-4709-b8fa-896827908df1","block_type":"box","text":"denominated in such currency.","page_number":62,"box":{"x":69,"y":430,"width":216,"height":11}},{"id":"db7876f3-50c6-474c-964a-2d5aeb75816d","block_type":"box","text":"Spot Transactions and FX Forwards.","page_number":62,"box":{"x":102,"y":453,"width":254,"height":11}},{"id":"a2d4d4aa-a761-41d6-bfc2-aac523e9007a","block_type":"box","text":"FX forwards are OTC contracts to purchase or sell a specified amount of a","page_number":62,"box":{"x":364,"y":453,"width":527,"height":11}},{"id":"db7d87cc-241b-4dc2-84ba-b54f7a0a1151","block_type":"box","text":"specified currency or multinational currency unit at a specified price and specified future date. Spot foreign exchange","page_number":62,"box":{"x":69,"y":468,"width":834,"height":11}},{"id":"3767da2c-6cc0-4fd3-8d4e-7157fb0e48a6","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":62,"box":{"x":68,"y":483,"width":798,"height":11}},{"id":"9342ba84-b521-4af2-b852-01b0eee348be","block_type":"box","text":"transactions for purposes of hedging either a specific transaction or a portfolio position, or, with respect to certain","page_number":62,"box":{"x":68,"y":498,"width":817,"height":11}},{"id":"1731ec01-fc52-4638-9f21-56965be3d559","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":62,"box":{"x":70,"y":513,"width":830,"height":11}},{"id":"969c9e16-0110-4dcf-96ff-7af8ed912b94","block_type":"box","text":"may enter into a foreign exchange transaction for purposes of hedging a specific transaction by, for example,","page_number":62,"box":{"x":69,"y":528,"width":774,"height":12}},{"id":"48284ebf-bee1-45fd-ba23-dedae2cf8c60","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":62,"box":{"x":70,"y":544,"width":828,"height":11}},{"id":"5fc157e2-eb0c-4bea-9e07-35fd8c12755e","block_type":"box","text":"anticipates receiving a dividend or distribution. A Fund may enter into a foreign exchange transaction for purposes of","page_number":62,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"2d22706e-1915-4fe3-ba83-24dab2e48f9c","block_type":"box","text":"hedging a portfolio position by selling forward a currency in which a portfolio position of the Fund is denominated or","page_number":62,"box":{"x":69,"y":574,"width":826,"height":11}},{"id":"886a1807-2d5e-4f17-91f5-b6a3d1ccec56","block_type":"box","text":"by purchasing a currency in which the Fund anticipates acquiring a portfolio position in the near future. A Fund may","page_number":62,"box":{"x":69,"y":589,"width":819,"height":11}},{"id":"4691fcce-4de7-4e1b-b155-0af8fe2cf583","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":62,"box":{"x":69,"y":604,"width":822,"height":11}},{"id":"74bd9bb8-79c9-4bda-85b4-1185a2849e10","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":62,"box":{"x":68,"y":619,"width":819,"height":11}},{"id":"e5a20bd5-e111-4f74-b8c8-de910676cabf","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":62,"box":{"x":69,"y":634,"width":814,"height":12}},{"id":"cfcae471-4f23-4ea8-828c-e926217e6256","block_type":"box","text":"currency being hedged, and (ii) executing a cross-hedge through the currency in which the cross-hedge is","page_number":62,"box":{"x":69,"y":650,"width":745,"height":11}},{"id":"1173989d-3ee5-489b-80b9-0bdedd37cef7","block_type":"box","text":"denominated will be significantly more cost-effective or provide substantially greater liquidity than executing a similar","page_number":62,"box":{"x":69,"y":664,"width":832,"height":12}},{"id":"0d0fce1f-e4a5-44cb-94df-50bf20fe0b2e","block_type":"box","text":"hedging transaction by means of the currency being hedged.","page_number":62,"box":{"x":69,"y":680,"width":428,"height":11}},{"id":"1c871561-4ab8-4883-8108-07e2ba5e6171","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":62,"box":{"x":101,"y":702,"width":797,"height":12}},{"id":"5eca69c8-9d01-487e-8c4d-e6e707d278df","block_type":"box","text":"of existing or anticipated holdings of portfolio securities. Proxy hedging is often used when the currency to which the","page_number":62,"box":{"x":69,"y":717,"width":829,"height":12}},{"id":"eb160595-203a-425d-96be-feddbb81ca40","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":62,"box":{"x":70,"y":732,"width":838,"height":12}},{"id":"4cac74e0-8985-4ce3-a509-318085238cb6","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":62,"box":{"x":69,"y":748,"width":823,"height":11}},{"id":"04fd5af5-37d2-476b-aaed-fdfac1d268a9","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":62,"box":{"x":70,"y":763,"width":827,"height":11}},{"id":"aea07d46-0d9d-4699-a7b8-c06a1d032a8e","block_type":"box","text":"hedging involves some of the same risks and considerations as other transactions with similar instruments. Currency","page_number":62,"box":{"x":69,"y":778,"width":838,"height":11}},{"id":"0e599185-f628-46cb-9492-c9b9148302bc","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":62,"box":{"x":68,"y":793,"width":798,"height":11}},{"id":"1eefe287-9bb9-44ab-bb6f-8683b0600f17","block_type":"box","text":"direction that is not anticipated. In addition, there is the risk that the perceived linkage between various currencies","page_number":62,"box":{"x":69,"y":808,"width":819,"height":11}},{"id":"cdb441e6-3c7c-44cb-8805-65fc391849f2","block_type":"box","text":"may not be present, including during the particular time that a Fund is engaging in proxy hedging.","page_number":62,"box":{"x":69,"y":823,"width":691,"height":12}},{"id":"951f3655-a70a-434c-a5c8-4b29b2041715","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":62,"box":{"x":101,"y":846,"width":785,"height":11}},{"id":"61b275b9-8ea0-482c-8268-89d30db1c366","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":62,"box":{"x":69,"y":861,"width":811,"height":11}},{"id":"67440c44-8db8-409d-b0b1-fef40531f1eb","block_type":"box","text":"have portfolio exposure. For example, a Fund may hold both Canadian government bonds and Japanese government","page_number":62,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"5f628b2d-1e1f-40b3-8b7b-dc10a5ead05e","block_type":"box","text":"bonds, and the Manager or sub-adviser may believe that Canadian dollars will deteriorate against Japanese yen. The","page_number":62,"box":{"x":69,"y":891,"width":829,"height":12}},{"id":"74068574-e525-44d6-a1bc-40df612161a4","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":62,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"bea53f70-01bc-49ed-aa52-094a99cf2d20","block_type":"box","text":"II-24","page_number":62,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"39c1c168-5f9c-464b-bda0-da9e7cdb787b","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":62,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d9414751-1b8a-4b36-ae7a-976cff808482","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":63,"box":{"x":69,"y":45,"width":818,"height":11}},{"id":"6a9441dd-944c-456e-99c2-62e78ea0fc3e","block_type":"box","text":"value of the Japanese yen relative to the U.S. dollar.","page_number":63,"box":{"x":68,"y":60,"width":372,"height":11}},{"id":"917ac2aa-0c22-4d1c-8077-82a0f612496c","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":63,"box":{"x":102,"y":82,"width":768,"height":12}},{"id":"0b4a0bb6-a05c-42b9-b26d-cc6720fbb4c3","block_type":"box","text":"forwards (“NDFs”). NDFs are cash-settled, short-term forward contracts that may be thinly traded or are denominated","page_number":63,"box":{"x":68,"y":98,"width":838,"height":11}},{"id":"82b7cf4b-bd15-4e35-b415-f4bbce11d126","block_type":"box","text":"in non-convertible foreign currency, where the profit or loss at the time at the settlement date is calculated by taking","page_number":63,"box":{"x":70,"y":113,"width":829,"height":11}},{"id":"1881ab5c-0dc0-4519-962e-283056b9c3b8","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":63,"box":{"x":68,"y":128,"width":806,"height":11}},{"id":"11b48325-52e2-4e6b-8ef1-0176b068b2cb","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":63,"box":{"x":69,"y":143,"width":839,"height":11}},{"id":"f5ff2eb4-2e8b-443f-9b05-726c19c12cb2","block_type":"box","text":"the difference between the prevailing market exchange rate and the agreed upon exchange rate is calculated. The","page_number":63,"box":{"x":68,"y":158,"width":812,"height":11}},{"id":"955cd849-cf96-47ea-b9df-3d950deae8d1","block_type":"box","text":"settlement date is the date by which the payment of the difference is due to the party receiving payment. NDFs are","page_number":63,"box":{"x":69,"y":173,"width":821,"height":11}},{"id":"941eb235-1ec6-4720-8448-29d3a4ccbe4b","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":63,"box":{"x":69,"y":188,"width":835,"height":11}},{"id":"99322f43-44a3-4fd7-81a1-ad7768e0161a","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":63,"box":{"x":68,"y":203,"width":802,"height":12}},{"id":"2d71c08a-20ae-4c13-a71e-63b462ff274d","block_type":"box","text":"traded.","page_number":63,"box":{"x":68,"y":219,"width":49,"height":8}},{"id":"7a0c101e-a642-40b9-ab92-35545f170b0d","block_type":"box","text":"Currency Futures.","page_number":63,"box":{"x":102,"y":241,"width":123,"height":11}},{"id":"3fe32814-dff2-4a9e-9369-db79f687feb8","block_type":"box","text":"A Fund may seek to enhance returns or hedge against the decline in the value of a currency","page_number":63,"box":{"x":232,"y":241,"width":654,"height":11}},{"id":"7d1b2e41-6c6b-4cd6-ace4-dbb2ffdfa796","block_type":"box","text":"through use of currency futures or options on currency futures. Currency futures are similar to forward foreign","page_number":63,"box":{"x":68,"y":256,"width":782,"height":12}},{"id":"bc11b908-bb3b-4862-8779-c31e071b9720","block_type":"box","text":"exchange transactions except that futures are standardized, exchange-traded contracts while forward foreign","page_number":63,"box":{"x":69,"y":271,"width":774,"height":12}},{"id":"d3451e2b-8b3c-43e9-b455-8566a815f869","block_type":"box","text":"exchange transactions are traded in the OTC market. Currency futures involve substantial currency risk as well as the","page_number":63,"box":{"x":69,"y":286,"width":836,"height":12}},{"id":"57c2113d-a485-4890-b605-583361b85797","block_type":"box","text":"risks discussed above in “—Futures.”","page_number":63,"box":{"x":69,"y":302,"width":269,"height":9}},{"id":"439d14bc-5bff-4acd-8bf9-58516d324703","block_type":"box","text":"Currency Options.","page_number":63,"box":{"x":102,"y":324,"width":125,"height":11}},{"id":"7ddd02f7-0fc3-4a9a-a5f9-793a6aa0fe82","block_type":"box","text":"A Fund may seek to enhance returns or hedge against the decline in the value of a currency","page_number":63,"box":{"x":233,"y":324,"width":654,"height":12}},{"id":"67b2f3c1-8784-4817-a741-5e0251f33fca","block_type":"box","text":"through the use of currency options. Certain Funds have fundamental investment restrictions that permit the","page_number":63,"box":{"x":68,"y":339,"width":776,"height":12}},{"id":"7bb0c491-3add-4009-9ab4-031eed0c7993","block_type":"box","text":"purchase of currency options, but prohibit the writing of currency options. Currency options are similar to options on","page_number":63,"box":{"x":70,"y":355,"width":825,"height":11}},{"id":"76956941-de67-4e9e-b363-757c047ba8fd","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":63,"box":{"x":69,"y":370,"width":827,"height":11}},{"id":"8dca85d1-7a63-4053-96b5-adc7cce83026","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":63,"box":{"x":68,"y":385,"width":820,"height":11}},{"id":"9b0cbe73-80b7-4e6b-a19f-bb016b07d835","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":63,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"4d3a1f15-4069-40f8-acef-172ac72137e1","block_type":"box","text":"on currencies either on exchanges or OTC markets. Such transactions in options may include exotic options on","page_number":63,"box":{"x":69,"y":415,"width":790,"height":11}},{"id":"90ba60ff-11c3-453d-bc1b-cd0430d02c11","block_type":"box","text":"currencies, which are typically traded in OTC markets and have additional features that result in different payment","page_number":63,"box":{"x":69,"y":430,"width":813,"height":11}},{"id":"57f9abfb-bc66-4e74-b6a3-7b631dc99979","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":63,"box":{"x":69,"y":446,"width":826,"height":10}},{"id":"35219ad5-1c6f-46b7-bfd1-5e28ddc99bac","block_type":"box","text":"on up to 100% of the currencies in its portfolio. See “—Options” above. Currency options involve substantial","page_number":63,"box":{"x":69,"y":460,"width":776,"height":12}},{"id":"994c1d43-44cb-48f5-adda-127f8aceba4a","block_type":"box","text":"currency risk, and may also involve credit, leverage or illiquidity risk.","page_number":63,"box":{"x":69,"y":476,"width":483,"height":11}},{"id":"de661749-63ff-48c7-acc7-0941e844777b","block_type":"box","text":"Currency Swaps.","page_number":63,"box":{"x":102,"y":498,"width":117,"height":11}},{"id":"62b19f25-d056-468b-b501-00e7ffb961b2","block_type":"box","text":"A Fund may enter into currency swaps in order to protect against currency fluctuations or to","page_number":63,"box":{"x":225,"y":498,"width":652,"height":11}},{"id":"5b8d420d-9c2a-4034-82b8-e37be67cb8a9","block_type":"box","text":"hedge portfolio positions. Currency swaps are transactions in which one currency is simultaneously bought for a","page_number":63,"box":{"x":69,"y":513,"width":799,"height":12}},{"id":"d828684f-38ea-48eb-9397-7fc995673215","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":63,"box":{"x":69,"y":528,"width":812,"height":12}},{"id":"9ca8b5ce-69be-424c-b70e-fc7908b136b5","block_type":"box","text":"exchange of the rights of a Fund and another party to make or receive payments in specified currencies, and typically","page_number":63,"box":{"x":69,"y":543,"width":836,"height":12}},{"id":"7145035b-a0bc-49c9-b24b-1be09b479880","block_type":"box","text":"require the delivery of the entire principal value of one designated currency in exchange for the other designated","page_number":63,"box":{"x":69,"y":559,"width":800,"height":11}},{"id":"38e14353-f778-46de-8a76-e70ba8f503f7","block_type":"box","text":"currency. As a result, the entire principal value of a currency swap is subject to the risk that the other party to the","page_number":63,"box":{"x":69,"y":574,"width":810,"height":11}},{"id":"a7181c60-1b89-485c-9a7a-e69d33249bbf","block_type":"box","text":"swap will default on its contractual delivery obligations.","page_number":63,"box":{"x":69,"y":589,"width":393,"height":11}},{"id":"3ee76d5a-11b1-4e72-b21d-d4f01bcf4d0c","block_type":"box","text":"Distressed Securities.","page_number":63,"box":{"x":102,"y":612,"width":159,"height":9}},{"id":"51197c55-2cad-49d1-874e-2fafff804931","block_type":"box","text":"A Fund may invest in securities, including loans purchased in the secondary market, that","page_number":63,"box":{"x":267,"y":612,"width":633,"height":11}},{"id":"09197ad3-1b22-4028-9d7c-19477d721c0d","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":63,"box":{"x":69,"y":627,"width":834,"height":11}},{"id":"6a0f3c97-7d42-4e6a-9bff-b09352f090ba","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":63,"box":{"x":70,"y":642,"width":827,"height":11}},{"id":"92b22d70-c0a9-4655-9819-53c0ec981e55","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":63,"box":{"x":69,"y":657,"width":835,"height":11}},{"id":"60919d6a-910b-4940-b325-f96f00c7bec8","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":63,"box":{"x":69,"y":672,"width":784,"height":11}},{"id":"31bc5ca5-2958-4584-a003-50b364b20791","block_type":"box","text":"Investment in Distressed Securities is speculative and involves significant risks.","page_number":63,"box":{"x":70,"y":687,"width":569,"height":11}},{"id":"e1c1ec89-3e6e-464c-bb1b-c65ffd91637a","block_type":"box","text":"A Fund will generally make such investments only when the Manager believes it is reasonably likely that the","page_number":63,"box":{"x":101,"y":710,"width":766,"height":11}},{"id":"a3732b03-7df4-40a5-9ae3-502e87593f63","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":63,"box":{"x":70,"y":725,"width":795,"height":11}},{"id":"e4617f4d-26f5-43e1-b48b-0d21e684519c","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":63,"box":{"x":70,"y":740,"width":826,"height":11}},{"id":"9deb9473-2274-4f03-adb6-ed67aaf7443d","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":63,"box":{"x":69,"y":755,"width":794,"height":11}},{"id":"cfc7f888-6a2d-48b4-a9a1-56685970b0a5","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":63,"box":{"x":69,"y":770,"width":832,"height":12}},{"id":"c6ae19e2-5bd6-4336-8f0a-675c98bebea1","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":63,"box":{"x":69,"y":785,"width":824,"height":12}},{"id":"7ec15e6b-ed61-4a9d-835c-810688705fac","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":63,"box":{"x":69,"y":801,"width":789,"height":11}},{"id":"a479439b-b374-47c7-ab6c-7190dabf5a0f","block_type":"box","text":"significant uncertainty as to whether or not the exchange offer or plan of reorganization will be completed and the","page_number":63,"box":{"x":69,"y":816,"width":810,"height":11}},{"id":"a6ae044e-a14c-4adf-8dfd-7dbc60f54060","block_type":"box","text":"Fund may be required to bear certain extraordinary expenses to protect and recover its investment. Therefore, to the","page_number":63,"box":{"x":70,"y":831,"width":831,"height":11}},{"id":"60699b31-3dd0-45a8-a37e-59bd0780e152","block_type":"box","text":"extent the Fund seeks capital appreciation through investment in distressed securities, the Fund’s ability to achieve","page_number":63,"box":{"x":69,"y":846,"width":826,"height":11}},{"id":"7be8d324-94af-4cfd-9b48-3a8aa06fa22c","block_type":"box","text":"current income for its shareholders may be diminished. The Fund also will be subject to significant uncertainty as to","page_number":63,"box":{"x":69,"y":861,"width":827,"height":11}},{"id":"8755dd18-5e55-4387-b9d8-e92db468851d","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":63,"box":{"x":68,"y":876,"width":834,"height":11}},{"id":"545c62ad-8f52-4653-a5e1-0fb36ffc1e8c","block_type":"box","text":"satisfied (","page_number":63,"box":{"x":69,"y":891,"width":70,"height":11}},{"id":"49969de4-c6ee-4c2d-a607-3c3ef0680306","block_type":"box","text":"e.g.","page_number":63,"box":{"x":140,"y":893,"width":25,"height":10}},{"id":"37e852ba-3c30-4df7-9b29-a217c9d700e5","block_type":"box","text":", through a liquidation of the obligor’s assets, an exchange offer or plan of reorganization involving the","page_number":63,"box":{"x":168,"y":891,"width":729,"height":12}},{"id":"5fe5bd57-9256-4979-894f-37ee4b8b7129","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":63,"box":{"x":69,"y":906,"width":807,"height":12}},{"id":"e37e9829-e85a-4e72-91cc-89673d772bce","block_type":"box","text":"II-25","page_number":63,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"81dbe6a8-8787-418b-95b5-6191cff2d9c5","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":63,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d840548e-630e-4fa0-b0b8-a9db09659631","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":64,"box":{"x":69,"y":45,"width":797,"height":11}},{"id":"04eee886-9aca-4d3f-9f29-458d10e9ee86","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":64,"box":{"x":69,"y":60,"width":816,"height":11}},{"id":"b4d42900-73e0-40fe-b6de-2b6395a409a1","block_type":"box","text":"reorganization will not have a lower value or income potential than may have been anticipated when the investment","page_number":64,"box":{"x":69,"y":75,"width":821,"height":11}},{"id":"2bb7533c-aece-4d04-ae89-30b671cca77d","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":64,"box":{"x":68,"y":90,"width":827,"height":11}},{"id":"d479be82-4a60-4d01-bf84-8b5af859832e","block_type":"box","text":"reorganization may be restricted as to resale. Similarly, if a Fund participates in negotiations with respect to any","page_number":64,"box":{"x":69,"y":105,"width":800,"height":11}},{"id":"abef85d3-9159-4e06-806e-a7859823111e","block_type":"box","text":"exchange offer or plan of reorganization with respect to an issuer of Distressed Securities, the Fund may be","page_number":64,"box":{"x":69,"y":120,"width":770,"height":12}},{"id":"a974faf0-69ce-4553-8e23-fc2c6a0efa7c","block_type":"box","text":"restricted from disposing of such securities. To the extent that a Fund becomes involved in such proceedings, the","page_number":64,"box":{"x":69,"y":135,"width":809,"height":12}},{"id":"b866fe1a-aabe-46c4-92a1-e62ff1543188","block_type":"box","text":"Fund may have a more active participation in the affairs of the issuer than that assumed generally by an investor. The","page_number":64,"box":{"x":70,"y":150,"width":839,"height":12}},{"id":"5a5158fe-8153-4513-a311-9437feed7cca","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":64,"box":{"x":70,"y":166,"width":787,"height":11}},{"id":"f98b2bb9-c2ed-42c8-ab64-39fe65b9a016","block_type":"box","text":"affairs.","page_number":64,"box":{"x":69,"y":181,"width":49,"height":9}},{"id":"bb398693-bed3-4d65-a861-14e60c197058","block_type":"box","text":"Environmental, Social and Governance (“ESG”) Integration","page_number":64,"box":{"x":102,"y":203,"width":428,"height":11}},{"id":"4bc2896a-e85b-41d2-932a-080537ccf595","block_type":"box","text":". Although a Fund does not seek to implement a","page_number":64,"box":{"x":531,"y":204,"width":341,"height":11}},{"id":"5f54bcd0-7169-4830-826a-7e1d3a6ec089","block_type":"box","text":"specific sustainability objective, strategy or process unless disclosed in its Prospectus, Fund management will","page_number":64,"box":{"x":69,"y":218,"width":785,"height":12}},{"id":"3fdfba8b-621e-4f58-9db6-4d95f2f0be72","block_type":"box","text":"consider ESG factors as part of the investment process for the Fund. Fund management views ESG integration as the","page_number":64,"box":{"x":69,"y":234,"width":838,"height":11}},{"id":"3d56bd67-e1fc-4ea9-9462-8bb852c0ce17","block_type":"box","text":"practice of incorporating financially material ESG data or information into investment processes with the objective of","page_number":64,"box":{"x":70,"y":249,"width":827,"height":11}},{"id":"d47eb3a1-646d-4a8c-ba57-f30be1cb7be3","block_type":"box","text":"enhancing risk-adjusted returns. These ESG considerations will vary depending on a Fund’s particular investment","page_number":64,"box":{"x":69,"y":264,"width":806,"height":11}},{"id":"e63cbccb-7817-4088-a2c9-63810cb6abd2","block_type":"box","text":"strategies and may include consideration of third-party research as well as consideration of proprietary BlackRock","page_number":64,"box":{"x":69,"y":279,"width":812,"height":11}},{"id":"a7ec3632-aba1-4d2c-81e0-ea546e33f9ae","block_type":"box","text":"research across the ESG risks and opportunities regarding an issuer. The ESG characteristics utilized in a Fund’s","page_number":64,"box":{"x":69,"y":294,"width":807,"height":11}},{"id":"c3c4e491-06b1-472c-b00c-9f891f5eca87","block_type":"box","text":"investment process are anticipated to evolve over time and one or more characteristics may not be relevant with","page_number":64,"box":{"x":70,"y":309,"width":800,"height":11}},{"id":"13552fbc-18d1-4b7e-b457-651ceefaa0a7","block_type":"box","text":"respect to all issuers that are eligible for investment.","page_number":64,"box":{"x":69,"y":324,"width":377,"height":12}},{"id":"08d4d87e-a84e-4e71-b4ca-759cbd8f22e7","block_type":"box","text":"Certain of these considerations may affect a Fund’s exposure to certain companies or industries. While Fund","page_number":64,"box":{"x":102,"y":347,"width":778,"height":11}},{"id":"a7855667-7b4c-4635-9573-e99ae3d7a5ad","block_type":"box","text":"management views ESG considerations as having the potential to contribute to a Fund’s long-term performance,","page_number":64,"box":{"x":69,"y":362,"width":800,"height":11}},{"id":"6048ef00-b2a0-4479-b3c0-c84af72b4944","block_type":"box","text":"there is no guarantee that such results will be achieved.","page_number":64,"box":{"x":68,"y":377,"width":400,"height":12}},{"id":"1e5cb085-886c-4bca-85df-7bf81061462c","block_type":"box","text":"Equity Securities.","page_number":64,"box":{"x":102,"y":400,"width":127,"height":11}},{"id":"756ce694-81fa-4225-b73d-347ba56a55f9","block_type":"box","text":"Certain Funds may invest in equity securities, which include common stock and, for certain","page_number":64,"box":{"x":235,"y":400,"width":648,"height":11}},{"id":"08ec7567-89a4-442e-9210-1fa38c6aaefc","block_type":"box","text":"Funds, preferred stock (including convertible preferred stock); bonds, stock purchase warrants and rights; equity","page_number":64,"box":{"x":70,"y":415,"width":802,"height":11}},{"id":"65ab6af2-e54d-4745-9f4b-d3e52dfb7dab","block_type":"box","text":"interests in trusts; general and limited partnerships and limited liability companies; and depositary receipts. Stock","page_number":64,"box":{"x":70,"y":430,"width":817,"height":11}},{"id":"750394ad-2060-4f63-af77-f8cda495f287","block_type":"box","text":"markets are volatile. The price of equity securities will fluctuate and can decline and reduce the value of a portfolio","page_number":64,"box":{"x":69,"y":445,"width":819,"height":11}},{"id":"51565632-9f73-414f-a6ee-9fedf52ea655","block_type":"box","text":"investing in equities. The price of equity securities fluctuates based on changes in a company’s financial condition","page_number":64,"box":{"x":70,"y":460,"width":813,"height":12}},{"id":"24695b77-2a8a-4604-8d10-49f2e497d799","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":64,"box":{"x":69,"y":475,"width":839,"height":12}},{"id":"d5c2f175-621d-4bee-bff2-6cf15b9517cb","block_type":"box","text":"financial condition of the companies the Fund invests in decline or if overall market and economic conditions","page_number":64,"box":{"x":68,"y":491,"width":775,"height":11}},{"id":"5dc88bc2-1c07-4663-bd00-441829136ed9","block_type":"box","text":"deteriorate. They may also decline due to factors that affect a particular industry or industries, such as labor","page_number":64,"box":{"x":69,"y":506,"width":777,"height":11}},{"id":"1af7824f-14da-4461-985f-df068adb0b3b","block_type":"box","text":"shortages or increase in production costs and competitive conditions within an industry. In addition, they may decline","page_number":64,"box":{"x":69,"y":521,"width":837,"height":11}},{"id":"abaf280b-0f46-48d1-bf45-a736ce75a901","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":64,"box":{"x":69,"y":536,"width":831,"height":11}},{"id":"16b6b5c3-0b50-4bcb-a9ec-b44ba504456e","block_type":"box","text":"adverse economic conditions, changes in the general outlook for corporate earnings, changes in interest or currency","page_number":64,"box":{"x":69,"y":551,"width":829,"height":11}},{"id":"64c24545-20e2-4885-8598-8d4e961c6deb","block_type":"box","text":"rates or generally adverse investor sentiment.","page_number":64,"box":{"x":69,"y":566,"width":325,"height":11}},{"id":"8a24d335-f1e0-4357-af12-420dadd3448d","block_type":"box","text":"From time to time certain of the Funds may invest in shares of companies through initial public offerings","page_number":64,"box":{"x":102,"y":589,"width":745,"height":11}},{"id":"3cbaf7da-611a-4193-8312-181feaaa6512","block_type":"box","text":"(“IPOs”). IPOs have the potential to produce, and have in fact produced, substantial gains for certain Funds. There is","page_number":64,"box":{"x":69,"y":604,"width":833,"height":11}},{"id":"8cef025d-b9eb-44c8-8ff9-49924ddd42c9","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":64,"box":{"x":69,"y":619,"width":824,"height":11}},{"id":"3842c0b2-df07-42f1-a72b-c85576891687","block_type":"box","text":"these past gains as an indication of future performance. The investment performance of a Fund during periods when","page_number":64,"box":{"x":68,"y":634,"width":834,"height":12}},{"id":"46169b3d-1dbb-4208-b1f0-1fdd725cb4ed","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":64,"box":{"x":70,"y":649,"width":782,"height":12}},{"id":"414718c1-66c5-4f18-a62d-1e4ecdc4fbab","block_type":"box","text":"addition, as a Fund increases in size, the impact of IPOs on its performance will generally decrease. Securities","page_number":64,"box":{"x":69,"y":664,"width":790,"height":12}},{"id":"e1bef85c-c3bb-4f0e-916d-7946f94b6f5e","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":64,"box":{"x":70,"y":680,"width":823,"height":11}},{"id":"26d5d4df-f7ae-46a3-8280-15f5047a7954","block_type":"box","text":"Securities issued in IPOs have no trading history, and information about the companies may be available for very","page_number":64,"box":{"x":69,"y":695,"width":805,"height":11}},{"id":"f9440ab9-bf24-4442-906c-f54113b7b282","block_type":"box","text":"limited periods. In addition, the prices of securities sold in IPOs may be highly volatile or may decline shortly after the","page_number":64,"box":{"x":70,"y":710,"width":836,"height":11}},{"id":"7dbfe6b1-8f1f-4c9a-bbef-89c0d651545d","block_type":"box","text":"initial public offering.","page_number":64,"box":{"x":70,"y":725,"width":147,"height":11}},{"id":"f8c694c3-8929-48f5-b820-6159123ad40f","block_type":"box","text":"The Funds may invest in companies that have relatively small market capitalizations. These organizations will","page_number":64,"box":{"x":101,"y":748,"width":777,"height":11}},{"id":"fb0ef4b2-d330-48d2-b762-57229a6658b9","block_type":"box","text":"normally have more limited product lines, markets and financial resources and will be dependent upon a more limited","page_number":64,"box":{"x":69,"y":763,"width":838,"height":11}},{"id":"2258004f-123c-403e-850c-93ed24447b64","block_type":"box","text":"management group than larger capitalized companies. In addition, it is more difficult to get information on smaller","page_number":64,"box":{"x":69,"y":778,"width":815,"height":11}},{"id":"09f65b01-6d64-465d-b0f3-432a8f440c91","block_type":"box","text":"companies, which tend to be less well known, have shorter operating histories, do not have significant ownership by","page_number":64,"box":{"x":69,"y":793,"width":829,"height":11}},{"id":"42d52f29-8439-4554-8052-6f93f426abab","block_type":"box","text":"large investors and are followed by relatively few securities analysts. The securities of smaller capitalized companies","page_number":64,"box":{"x":70,"y":808,"width":831,"height":11}},{"id":"1398ab2f-7625-4cb7-8bae-119517339bd9","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":64,"box":{"x":69,"y":823,"width":826,"height":11}},{"id":"c609f54d-2789-4afb-a6af-1eabc6a2c84a","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":64,"box":{"x":68,"y":838,"width":810,"height":12}},{"id":"b4b092bd-f7e6-4f02-9e24-bcbaa3c7660b","block_type":"box","text":"more established companies.","page_number":64,"box":{"x":69,"y":854,"width":209,"height":10}},{"id":"18af06f7-c601-4dac-8b7f-4489bdc80870","block_type":"box","text":"II-26","page_number":64,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"87d91892-29b5-4cae-84d1-d3fbb73808df","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":64,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"040c9e44-8fa7-4e86-90fe-44be6741d8ff","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":65,"box":{"x":102,"y":45,"width":776,"height":11}},{"id":"97b9d8a9-37d7-4237-80aa-e01c7aba5f19","block_type":"box","text":"investing in such equity securities, see your Fund’s Prospectus. Certain of the Funds may also invest in shares of","page_number":65,"box":{"x":70,"y":60,"width":810,"height":11}},{"id":"cee07cc6-fd42-4203-b64d-3bcf9731ba62","block_type":"box","text":"private companies, which are subject to the risks of “Illiquid Investments” and “Restricted Securities” described","page_number":65,"box":{"x":70,"y":75,"width":799,"height":11}},{"id":"ba211f6f-9803-45dd-9281-97f8b1a6db97","block_type":"box","text":"below.","page_number":65,"box":{"x":69,"y":90,"width":43,"height":9}},{"id":"6c98538a-9e03-42fa-9d86-a4a6d6858d11","block_type":"box","text":"Real Estate-Related Securities.","page_number":65,"box":{"x":102,"y":113,"width":219,"height":9}},{"id":"098dcadb-784e-4ee9-809a-8bf37d20487e","block_type":"box","text":"Although no Fund may invest directly in real estate, certain Funds may invest in","page_number":65,"box":{"x":327,"y":113,"width":565,"height":11}},{"id":"d8f3e3ed-e2a1-43f4-863a-aaa337ffb1be","block_type":"box","text":"equity securities of issuers that are principally engaged in the real estate industry. Such investments are subject to","page_number":65,"box":{"x":69,"y":128,"width":822,"height":11}},{"id":"788d3720-1aa6-4ed9-9d37-066b4bcada9e","block_type":"box","text":"certain risks associated with the ownership of real estate and with the real estate industry in general. These risks","page_number":65,"box":{"x":69,"y":143,"width":814,"height":11}},{"id":"7865d6e9-5b65-43a7-8477-389636bcc3bd","block_type":"box","text":"include, among others: possible declines in the value of real estate; risks related to general and local economic","page_number":65,"box":{"x":70,"y":158,"width":796,"height":11}},{"id":"a76dd5f9-0c39-44ad-9a16-8ab581962c46","block_type":"box","text":"conditions; possible lack of availability of mortgage funds or other limitations on access to capital; overbuilding; risks","page_number":65,"box":{"x":69,"y":173,"width":836,"height":11}},{"id":"7efbb65b-1222-497f-a929-f565f8c51ee4","block_type":"box","text":"associated with leverage; market illiquidity; extended vacancies of properties; increase in competition, property","page_number":65,"box":{"x":69,"y":188,"width":795,"height":12}},{"id":"b63af912-8d1b-4dce-a86e-beca5138d979","block_type":"box","text":"taxes, capital expenditures and operating expenses; changes in zoning laws or other governmental regulation; costs","page_number":65,"box":{"x":68,"y":204,"width":828,"height":11}},{"id":"3c3785ad-2e30-4bc4-9faf-21f11abe1341","block_type":"box","text":"resulting from the clean-up of, and liability to third parties for damages resulting from, environmental problems;","page_number":65,"box":{"x":69,"y":218,"width":794,"height":12}},{"id":"4542e9a4-7449-4795-937c-d23c53ca83e1","block_type":"box","text":"tenant bankruptcies or other credit problems; casualty or condemnation losses; uninsured damages from floods,","page_number":65,"box":{"x":68,"y":234,"width":805,"height":11}},{"id":"54d23dee-dcf6-4931-9973-8efbab1d708e","block_type":"box","text":"earthquakes or other natural disasters; limitations on and variations in rents, including decreases in market rates for","page_number":65,"box":{"x":69,"y":249,"width":836,"height":11}},{"id":"c58a23b9-e06a-4fba-a81a-3377186d8cdf","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":65,"box":{"x":69,"y":264,"width":838,"height":11}},{"id":"20e3e5a5-a6ac-4401-b1db-6fb85bafb895","block_type":"box","text":"interest rates. To the extent that assets underlying a Fund’s investments are concentrated geographically, by property","page_number":65,"box":{"x":70,"y":279,"width":838,"height":11}},{"id":"28e8667c-becb-4155-a5aa-abee2e63110b","block_type":"box","text":"type or in certain other respects, the Fund may be subject to certain of the foregoing risks to a greater extent.","page_number":65,"box":{"x":68,"y":294,"width":785,"height":11}},{"id":"3665e2ff-e06d-487a-8a1a-517cf2ed8316","block_type":"box","text":"Investments by a Fund in securities of companies providing mortgage servicing will be subject to the risks associated","page_number":65,"box":{"x":70,"y":309,"width":836,"height":11}},{"id":"15dd19db-8031-41b2-a92b-a975994ca71a","block_type":"box","text":"with refinancings and their impact on servicing rights.","page_number":65,"box":{"x":68,"y":324,"width":381,"height":12}},{"id":"07be2631-349a-487a-9aa0-7d9edb3c98ce","block_type":"box","text":"In addition, if a Fund receives rental income or income from the disposition of real property acquired as a result","page_number":65,"box":{"x":102,"y":347,"width":797,"height":11}},{"id":"58187260-584b-4a44-9439-b99ac656c6dd","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":65,"box":{"x":69,"y":362,"width":829,"height":11}},{"id":"36e2e4b3-95c5-4e18-8635-9e0926f331ce","block_type":"box","text":"its tax status as a regulated investment company because of certain income source requirements applicable to","page_number":65,"box":{"x":70,"y":377,"width":794,"height":12}},{"id":"931a6adf-328a-4d87-b9a3-482e6198b87c","block_type":"box","text":"regulated investment companies under the Internal Revenue Code of 1986, as amended (the “Code”).","page_number":65,"box":{"x":69,"y":392,"width":730,"height":12}},{"id":"84e00ede-3ffb-4ebb-9b2e-f7f5df14451f","block_type":"box","text":"Securities of Smaller or Emerging Growth Companies.","page_number":65,"box":{"x":102,"y":415,"width":381,"height":11}},{"id":"20e61c49-f7be-47da-8086-71e8d29a45c2","block_type":"box","text":"Investment in smaller or emerging growth companies","page_number":65,"box":{"x":490,"y":415,"width":376,"height":11}},{"id":"81b21932-29e7-4960-932a-edca62db3656","block_type":"box","text":"involves greater risk than is customarily associated with investments in more established companies. The securities","page_number":65,"box":{"x":70,"y":430,"width":828,"height":11}},{"id":"ff0466f0-afeb-445b-833f-54a3c1095101","block_type":"box","text":"of smaller or emerging growth companies may be subject to more abrupt or erratic market movements than larger,","page_number":65,"box":{"x":69,"y":445,"width":815,"height":12}},{"id":"21135eca-7a6a-4834-ba4a-e560c7aa277e","block_type":"box","text":"more established companies or the market average in general. These companies may have limited product lines,","page_number":65,"box":{"x":69,"y":461,"width":804,"height":11}},{"id":"f91fd38d-8214-465d-835c-ecacdfa99621","block_type":"box","text":"markets or financial resources, or they may be dependent on a limited management group.","page_number":65,"box":{"x":69,"y":475,"width":647,"height":12}},{"id":"a782dd0f-c3ee-4a98-9d26-53855205ec11","block_type":"box","text":"Investments in smaller or emerging growth companies may involve greater risks and thus may be considered","page_number":65,"box":{"x":102,"y":498,"width":773,"height":11}},{"id":"e2e7c93f-9b89-405a-ae17-eb19469b01c2","block_type":"box","text":"speculative. Full development of these companies and trends frequently takes time.","page_number":65,"box":{"x":69,"y":513,"width":597,"height":11}},{"id":"5ecc5db1-8e8c-4135-ab7d-ebbd203e1d28","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":65,"box":{"x":102,"y":536,"width":797,"height":11}},{"id":"01b39058-fca0-48ab-bcfb-3c4caf3cfb3f","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":65,"box":{"x":69,"y":551,"width":832,"height":11}},{"id":"2ab236f4-521b-4926-952b-2e7629685444","block_type":"box","text":"result, the disposition by a Fund of portfolio securities to meet redemptions or otherwise may require the Fund to","page_number":65,"box":{"x":69,"y":566,"width":808,"height":11}},{"id":"d54ac833-537c-47ec-9336-d1b8bff0a1c4","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":65,"box":{"x":69,"y":581,"width":825,"height":12}},{"id":"d77ca079-9859-4224-b0f4-4f8e9442bef3","block_type":"box","text":"during periods when, in Fund management’s judgment, such disposition is not desirable.","page_number":65,"box":{"x":69,"y":597,"width":631,"height":11}},{"id":"a710042f-4615-40a7-b3cd-ffd01cad34de","block_type":"box","text":"The process of selection and continuous supervision by Fund management does not guarantee successful","page_number":65,"box":{"x":101,"y":619,"width":758,"height":11}},{"id":"9ecde679-584d-4e4c-a94c-430171a8fe8a","block_type":"box","text":"investment results. Careful initial selection is particularly important in this area as many new enterprises have","page_number":65,"box":{"x":70,"y":634,"width":787,"height":11}},{"id":"93725cb9-86c7-471c-9e03-0cc5a6723c07","block_type":"box","text":"promise but lack certain of the fundamental factors necessary to prosper. Investing in small cap and emerging","page_number":65,"box":{"x":70,"y":649,"width":789,"height":12}},{"id":"0d584496-b282-4920-b146-5288e78b2c91","block_type":"box","text":"growth companies requires specialized research and analysis.","page_number":65,"box":{"x":68,"y":665,"width":442,"height":11}},{"id":"0d72890b-279c-4e4e-bd86-17a6a235a5a8","block_type":"box","text":"Fund management believes that relatively small companies may have the opportunity to develop into significant","page_number":65,"box":{"x":102,"y":687,"width":795,"height":11}},{"id":"00a0dca3-4aa6-4811-914a-9f1b672624f0","block_type":"box","text":"business enterprises. A Fund may invest in securities of small issuers in the relatively early stages of business","page_number":65,"box":{"x":69,"y":702,"width":791,"height":12}},{"id":"623cf2ef-8ce1-454f-8522-afc44266e5f8","block_type":"box","text":"development that have a new technology, a unique or proprietary product or service, or a favorable market position.","page_number":65,"box":{"x":69,"y":717,"width":823,"height":12}},{"id":"e6ac2703-f381-4a99-b3b7-ed3362dc08f5","block_type":"box","text":"Equity securities of specific small cap issuers may present different opportunities for long-term capital","page_number":65,"box":{"x":102,"y":740,"width":729,"height":11}},{"id":"474b138f-f365-430c-b6f2-a97c38d093f9","block_type":"box","text":"appreciation during varying portions of economic or securities market cycles, as well as during varying stages of their","page_number":65,"box":{"x":69,"y":755,"width":837,"height":11}},{"id":"172e55bf-dd0f-496c-b6d6-65e132162e9c","block_type":"box","text":"business development. The market valuation of small cap issuers tends to fluctuate during economic or market","page_number":65,"box":{"x":69,"y":770,"width":794,"height":12}},{"id":"1ade3511-b1c3-402b-93f5-7ce104a46ed2","block_type":"box","text":"cycles.","page_number":65,"box":{"x":69,"y":786,"width":46,"height":11}},{"id":"e87599ab-998e-47ea-b795-efa93d6fc107","block_type":"box","text":"Tracking Stocks","page_number":65,"box":{"x":103,"y":808,"width":110,"height":11}},{"id":"55e05f7f-6581-404c-aeb9-e7dc97965608","block_type":"box","text":". A tracking stock is a separate class of common stock whose value is linked to a specific","page_number":65,"box":{"x":214,"y":808,"width":640,"height":11}},{"id":"66ee832b-de8f-4154-813e-d06b92011f78","block_type":"box","text":"business unit or operating division within a larger company and is designed to “track” the performance of such","page_number":65,"box":{"x":69,"y":823,"width":791,"height":12}},{"id":"afcc7038-ea67-4e1d-b46b-8369ada216be","block_type":"box","text":"business unit or division. The tracking stock may pay dividends to shareholders independent of the parent company.","page_number":65,"box":{"x":69,"y":838,"width":826,"height":12}},{"id":"68f37f2a-ac29-4dea-a541-3d6139f9a9c4","block_type":"box","text":"The parent company, rather than the business unit or division, generally is the issuer of tracking stock. However,","page_number":65,"box":{"x":68,"y":853,"width":801,"height":12}},{"id":"f69597ba-437f-48b0-a72c-184618c61c0a","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":65,"box":{"x":69,"y":869,"width":740,"height":11}},{"id":"8fbc5b63-7d6e-4b6c-8227-171df17020d9","block_type":"box","text":"Exchange-Traded Notes (“ETNs”).","page_number":65,"box":{"x":102,"y":891,"width":245,"height":11}},{"id":"2759578d-3644-48f5-a90a-ff6b93745686","block_type":"box","text":"Certain Funds may invest in ETNs. ETNs are generally notes representing","page_number":65,"box":{"x":354,"y":891,"width":521,"height":12}},{"id":"ac0c4bc7-7e54-4d34-b7a7-2b16e29afbf3","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":65,"box":{"x":69,"y":906,"width":814,"height":12}},{"id":"98a5a9bd-5279-47dd-ae20-5fff6a5f9776","block_type":"box","text":"II-27","page_number":65,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1153823c-4491-40bc-b51c-16e96e28255c","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":65,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3102a21c-f0e9-477b-8e07-22898659e071","block_type":"box","text":"are based on the performance of one or more underlying assets, reference rates or indexes, minus fees and","page_number":66,"box":{"x":69,"y":45,"width":774,"height":11}},{"id":"515ec09c-e600-4d68-94ab-dcb2597b8815","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":66,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"99126442-ec73-4be0-b0bc-95357c575d0a","block_type":"box","text":"ETF, an ETN can be held until the ETN’s maturity, at which time the issuer will pay a return linked to the performance","page_number":66,"box":{"x":70,"y":75,"width":831,"height":11}},{"id":"b9b1656a-004b-45e4-a181-15be667f7856","block_type":"box","text":"of the specific asset, index or rate (“reference instrument”) to which the ETN is linked minus certain fees. Unlike","page_number":66,"box":{"x":69,"y":90,"width":805,"height":11}},{"id":"efdbb331-27ec-49cd-af1c-ba5a90dc812b","block_type":"box","text":"regular bonds, ETNs do not make periodic interest payments, and principal is not protected.","page_number":66,"box":{"x":69,"y":105,"width":654,"height":11}},{"id":"597e9c27-506e-4cf2-9e5b-6ab63f245543","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":66,"box":{"x":101,"y":128,"width":794,"height":11}},{"id":"43b8e0de-5799-4d5d-8e2e-75664987f7dc","block_type":"box","text":"the ETN, volatility and lack of liquidity in underlying markets, changes in the applicable interest rates, the","page_number":66,"box":{"x":68,"y":143,"width":748,"height":11}},{"id":"cffc28fe-e88a-4b2b-b9bd-534e602ff562","block_type":"box","text":"performance of the reference instrument, changes in the issuer’s credit rating and economic, legal, political or","page_number":66,"box":{"x":70,"y":158,"width":789,"height":11}},{"id":"9281ed64-6f04-489a-b6c6-a297663f5272","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":66,"box":{"x":68,"y":173,"width":831,"height":11}},{"id":"a94cb26a-7f55-4e39-8c33-402fcd3507a9","block_type":"box","text":"drop due to a downgrade in an issuer’s credit rating, despite the underlying reference instrument remaining","page_number":66,"box":{"x":69,"y":188,"width":766,"height":12}},{"id":"5901ecb9-ccca-483f-a0dc-59ce26bf24e3","block_type":"box","text":"unchanged. When a Fund invests in ETNs, it will bear its proportionate share of any fees and expenses borne by the","page_number":66,"box":{"x":69,"y":203,"width":828,"height":12}},{"id":"ac5a9804-cfda-4a61-b51b-c4962abf4563","block_type":"box","text":"ETN.","page_number":66,"box":{"x":70,"y":219,"width":30,"height":8}},{"id":"cdb58b5d-89ef-468d-881a-ce68a219782a","block_type":"box","text":"An ETN that is tied to a reference instrument may not replicate the performance of the reference instrument.","page_number":66,"box":{"x":101,"y":241,"width":776,"height":11}},{"id":"0275a86b-5fd4-45f2-898c-24cd4aca3306","block_type":"box","text":"ETNs also incur certain expenses not incurred by their applicable reference instrument. Some ETNs that use leverage","page_number":66,"box":{"x":70,"y":256,"width":837,"height":12}},{"id":"c4f9e9ae-dac9-447c-a1a3-2da27df9bc5d","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":66,"box":{"x":69,"y":271,"width":840,"height":12}},{"id":"864b6049-a7c9-47dc-b3cd-80d8b3609515","block_type":"box","text":"risk as other instruments that use leverage in any form. While leverage allows for greater potential return, the","page_number":66,"box":{"x":69,"y":286,"width":781,"height":12}},{"id":"36f7640b-3b03-4bfc-bffd-302940019164","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":66,"box":{"x":70,"y":302,"width":827,"height":11}},{"id":"7ceb76fc-6be5-4322-8525-4febdc2b451e","block_type":"box","text":"addition to the money lost on the investment, the loan still needs to be repaid.","page_number":66,"box":{"x":69,"y":317,"width":560,"height":11}},{"id":"4859abf6-032e-4dcc-a85b-f455dee510e5","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":66,"box":{"x":102,"y":340,"width":774,"height":11}},{"id":"a47b5837-b4c9-4c8d-8c7b-c14f7d7f93a8","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":66,"box":{"x":68,"y":355,"width":788,"height":11}},{"id":"2ae51f01-cbb3-4ae7-91fe-65c7e9ff5293","block_type":"box","text":"reference instrument. The market value of ETN shares may differ from the value of the reference instrument. This","page_number":66,"box":{"x":69,"y":370,"width":810,"height":11}},{"id":"a22f93f7-a296-4b4c-b590-9a75f29875e8","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":66,"box":{"x":69,"y":385,"width":815,"height":11}},{"id":"0b6dc0ff-67ca-495b-930d-87e6d3276591","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":66,"box":{"x":68,"y":400,"width":766,"height":11}},{"id":"2a022f7f-b8ff-47f6-ae84-534d9059d6da","block_type":"box","text":"instrument that the ETN seeks to track.","page_number":66,"box":{"x":70,"y":415,"width":279,"height":9}},{"id":"0a0c742f-0c43-4f83-8372-01b195a47e62","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":66,"box":{"x":101,"y":438,"width":791,"height":11}},{"id":"2221bbd4-e130-4de7-8858-f4c7c8cc849e","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":66,"box":{"x":69,"y":453,"width":818,"height":11}},{"id":"fe6542f1-ab09-4128-86d0-144b2c8a5e48","block_type":"box","text":"market. An investor in an ETN could lose some or all of the amount invested.","page_number":66,"box":{"x":69,"y":468,"width":547,"height":9}},{"id":"1c77aced-13b8-4347-9583-9c221974cc0e","block_type":"box","text":"ETNs are also subject to tax risks. The Internal Revenue Service (the “IRS”) may not accept, and a court may not","page_number":66,"box":{"x":102,"y":491,"width":807,"height":11}},{"id":"37c46327-45fa-443d-9342-5cd19de30b59","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":66,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"bb5ee2ab-79f2-447b-b162-dfe967a40405","block_type":"box","text":"derived by a Fund from investments in ETNs may be affected by future legislation.","page_number":66,"box":{"x":69,"y":521,"width":581,"height":11}},{"id":"f213d8f4-5530-4179-aa21-ae51a48ba8a8","block_type":"box","text":"Foreign Investments.","page_number":66,"box":{"x":102,"y":544,"width":152,"height":11}},{"id":"5549b7cd-1691-4653-bf78-454abe3c0b23","block_type":"box","text":"Foreign Investment Risks.","page_number":66,"box":{"x":102,"y":566,"width":182,"height":11}},{"id":"bfdf368c-0287-4bbd-a53c-a2c3958673d6","block_type":"box","text":"Certain Funds may invest in foreign securities, including securities from issuers","page_number":66,"box":{"x":291,"y":566,"width":567,"height":11}},{"id":"2a6c0747-eb4c-462a-8570-7b8745a848ae","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":66,"box":{"x":70,"y":581,"width":822,"height":12}},{"id":"1ceb4606-c3ae-4b32-9e24-db8847ce0074","block_type":"box","text":"Investing in foreign securities involves risks not typically associated with investing in securities of companies","page_number":66,"box":{"x":70,"y":596,"width":774,"height":12}},{"id":"2d5d5cd2-7318-46e1-98db-2690e041240e","block_type":"box","text":"organized and operated in the United States that can increase the chances that a Fund will lose money.","page_number":66,"box":{"x":69,"y":612,"width":738,"height":11}},{"id":"718c26ec-86c5-4d91-95c9-61b38d7945ab","block_type":"box","text":"Securities issued by certain companies organized outside the United States may not be deemed to be foreign","page_number":66,"box":{"x":102,"y":634,"width":782,"height":12}},{"id":"8bcf31cb-ad2b-47aa-b42c-15cbbba70873","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":66,"box":{"x":69,"y":649,"width":824,"height":12}},{"id":"63b44dc9-74d7-49dc-95ae-fa9554e3a563","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":66,"box":{"x":70,"y":665,"width":771,"height":11}},{"id":"a21d1608-7a89-4e7e-bc25-21b1002621da","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":66,"box":{"x":69,"y":680,"width":792,"height":11}},{"id":"d3537c20-12fc-4856-a851-152855ea06d1","block_type":"box","text":"benchmark index.","page_number":66,"box":{"x":69,"y":695,"width":124,"height":9}},{"id":"f116869a-7143-4a9a-85b1-8a0af7d02e59","block_type":"box","text":"In addition to equity securities, foreign investments of the Funds may include: (a) debt obligations issued or","page_number":66,"box":{"x":102,"y":717,"width":767,"height":12}},{"id":"27437616-c8ce-40ff-9529-a57b0b470537","block_type":"box","text":"guaranteed by foreign sovereign governments or their agencies, authorities, instrumentalities or political","page_number":66,"box":{"x":68,"y":732,"width":742,"height":12}},{"id":"bac96010-d68b-4c6a-a52b-047c24bac4ba","block_type":"box","text":"subdivisions, including a foreign state, province or municipality; (b) debt obligations of supranational organizations;","page_number":66,"box":{"x":69,"y":748,"width":818,"height":11}},{"id":"ee21b8c3-3fd5-4416-ac00-5c85588ec202","block_type":"box","text":"(c) debt obligations of foreign banks and bank holding companies; (d) debt obligations of domestic banks and","page_number":66,"box":{"x":69,"y":763,"width":780,"height":11}},{"id":"1e8f8fbd-f5a2-46c9-8ef0-01d92874b3d8","block_type":"box","text":"corporations issued in foreign currencies; (e) debt obligations denominated in the Euro; and (f) foreign corporate debt","page_number":66,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"641f3f0a-f2bd-4c01-968d-61afdf0ca07e","block_type":"box","text":"securities and commercial paper. Such securities may include loan participations and assignments, convertible","page_number":66,"box":{"x":69,"y":793,"width":794,"height":11}},{"id":"fcb8c260-dabd-4d70-8319-69dcae864750","block_type":"box","text":"securities and zero-coupon securities.","page_number":66,"box":{"x":69,"y":808,"width":268,"height":11}},{"id":"687b809c-e72d-423f-a02a-e441810de0e5","block_type":"box","text":"Dividends or interest on, or proceeds from the sale of, foreign securities may be subject to foreign withholding","page_number":66,"box":{"x":102,"y":831,"width":785,"height":11}},{"id":"bc313873-93f2-41fe-9564-6d98dd56a7a3","block_type":"box","text":"taxes.","page_number":66,"box":{"x":68,"y":847,"width":42,"height":8}},{"id":"2d844fe3-6e92-491a-bc53-41cd1b5c4dac","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":66,"box":{"x":101,"y":869,"width":798,"height":11}},{"id":"0fb44ce8-33a6-4daa-bdd2-15c39176eb55","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":66,"box":{"x":68,"y":884,"width":815,"height":11}},{"id":"cb239a81-9776-4771-96e8-b9fc4f7396bc","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":66,"box":{"x":70,"y":899,"width":792,"height":11}},{"id":"4016c344-9371-49b9-a1c6-f001406020f7","block_type":"box","text":"II-28","page_number":66,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"88e803ff-bf8a-45d4-a226-785e6c684a3b","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":66,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a32e4a4a-d5d8-4430-9b6b-68793766d015","block_type":"box","text":"underlying security (","page_number":67,"box":{"x":69,"y":45,"width":140,"height":11}},{"id":"a978305a-60a8-4579-89f8-d803e0cc5154","block_type":"box","text":"i.e.","page_number":67,"box":{"x":211,"y":45,"width":20,"height":9}},{"id":"59338d03-aae7-426e-8db2-4f83af3ee9d2","block_type":"box","text":", the Fund’s quote from the closed foreign market). The impact of a closed foreign market on a","page_number":67,"box":{"x":234,"y":45,"width":675,"height":11}},{"id":"67c255ea-b616-4379-9214-be5934642699","block_type":"box","text":"Fund is likely to be greater where a large portion of the Fund’s underlying securities or other instruments trade on","page_number":67,"box":{"x":70,"y":60,"width":809,"height":11}},{"id":"bad2e84e-0af6-4658-af42-d0a262ba0311","block_type":"box","text":"that closed foreign market or when the foreign market is closed for unscheduled reasons. These deviations may","page_number":67,"box":{"x":68,"y":75,"width":800,"height":11}},{"id":"b9f281b7-0792-4728-a490-c18255a01372","block_type":"box","text":"result in premiums or discounts to certain Funds’ NAVs that may be greater than those experienced by other ETFs.","page_number":67,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"bf75be98-155b-443d-b617-b2c4954c54fc","block_type":"box","text":"Foreign Market Risk.","page_number":67,"box":{"x":102,"y":113,"width":144,"height":11}},{"id":"ae1ac2b5-17f4-4fc8-b0b2-1be304480065","block_type":"box","text":"Funds that may invest in foreign securities offer the potential for more diversification than a","page_number":67,"box":{"x":254,"y":113,"width":652,"height":11}},{"id":"329230f1-7feb-4693-a92e-17427138b8f5","block_type":"box","text":"Fund that invests only in the United States because securities traded on foreign markets have often (though not","page_number":67,"box":{"x":70,"y":128,"width":797,"height":11}},{"id":"b4114da4-ad6b-4153-ba05-dd68c4d1a61c","block_type":"box","text":"always) performed differently from securities traded in the United States. However, such investments often involve","page_number":67,"box":{"x":69,"y":143,"width":817,"height":11}},{"id":"45169200-c34a-481b-a6de-970255ad987f","block_type":"box","text":"risks not present in U.S. investments that can increase the chances that a Fund will lose money. In particular, a Fund","page_number":67,"box":{"x":69,"y":158,"width":836,"height":11}},{"id":"f7e64c4d-0cf8-4b00-85ba-ea9c699f9796","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":67,"box":{"x":70,"y":173,"width":835,"height":11}},{"id":"f7b8aab3-9202-4258-b482-3aeca54c8933","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":67,"box":{"x":69,"y":188,"width":810,"height":12}},{"id":"822dc2dd-cff8-4633-bcfe-a364975ef7fd","block_type":"box","text":"prices of foreign securities may fluctuate more than prices of securities traded in the United States. Investments in","page_number":67,"box":{"x":70,"y":203,"width":820,"height":12}},{"id":"d8000de6-7eba-4f0b-b618-1c8c18705b90","block_type":"box","text":"foreign markets may also be adversely affected by governmental actions such as the imposition of punitive taxes or","page_number":67,"box":{"x":68,"y":218,"width":826,"height":12}},{"id":"574d6b24-279c-4b64-b7ae-6d015fb9d4f4","block_type":"box","text":"tariffs. In addition, economic conditions, such as volatile currency exchange rates and interest rates, political events,","page_number":67,"box":{"x":68,"y":234,"width":836,"height":11}},{"id":"2eaba985-29bb-4821-a26d-d41abe67d4b3","block_type":"box","text":"military action and other conditions may, without prior warning, lead to the governments of certain countries, or the","page_number":67,"box":{"x":69,"y":249,"width":821,"height":11}},{"id":"1ca9aba5-9c4a-4cdc-affe-9ac8bac098fb","block_type":"box","text":"U.S. Government with respect to certain countries, prohibiting or imposing substantial restrictions through capital","page_number":67,"box":{"x":70,"y":264,"width":807,"height":11}},{"id":"4b783599-e5c1-4f9f-96f9-eb37d82223bd","block_type":"box","text":"controls and/or sanctions on foreign investing in the capital markets or certain industries in those countries. Capital","page_number":67,"box":{"x":69,"y":279,"width":830,"height":11}},{"id":"6b68cc81-b139-4db5-8c9c-9d2b9d142368","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":67,"box":{"x":69,"y":294,"width":810,"height":11}},{"id":"484e9875-88c0-4e9c-a5ee-9ec6fab4ac25","block_type":"box","text":"securities, derivatives or other assets and may also include retaliatory actions of one government against another","page_number":67,"box":{"x":69,"y":309,"width":813,"height":11}},{"id":"cb1d774b-4dd5-4989-b088-a642986a8917","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":67,"box":{"x":68,"y":324,"width":828,"height":12}},{"id":"32a56855-69d9-4092-957f-c396e03cf00d","block_type":"box","text":"transfer, receive, deliver or otherwise obtain exposure to foreign securities and assets, including the ability to","page_number":67,"box":{"x":68,"y":339,"width":782,"height":12}},{"id":"24868b7f-30c6-4234-820a-3a901e5a3d3d","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":67,"box":{"x":68,"y":355,"width":796,"height":11}},{"id":"c2db0db1-02d1-4076-8582-99bd6a73eafd","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":67,"box":{"x":70,"y":370,"width":837,"height":11}},{"id":"7970fd39-f922-4e4d-863f-959b04115777","block_type":"box","text":"potential foreign market risks include exchange controls, difficulties in pricing securities, defaults on foreign","page_number":67,"box":{"x":70,"y":385,"width":768,"height":11}},{"id":"044f79cb-255b-4d53-8aa2-a6f68fa9d015","block_type":"box","text":"government securities, difficulties in enforcing favorable legal judgments in foreign courts, and political and social","page_number":67,"box":{"x":68,"y":400,"width":813,"height":11}},{"id":"79fdf9ce-e52f-455e-935a-06949a0da565","block_type":"box","text":"conditions, such as diplomatic relations, confiscatory taxation, expropriation, limitation on the removal of funds or","page_number":67,"box":{"x":69,"y":415,"width":814,"height":11}},{"id":"76ba0457-2424-4273-a580-d50e1ec5d423","block_type":"box","text":"assets, or imposition of (or change in) exchange control regulations. Legal remedies available to investors in certain","page_number":67,"box":{"x":69,"y":430,"width":828,"height":11}},{"id":"7f1d2ef8-80aa-4426-bb9f-8f3861254eda","block_type":"box","text":"foreign countries may be less extensive than those available to investors in the United States or other foreign","page_number":67,"box":{"x":68,"y":445,"width":782,"height":12}},{"id":"e337bb2c-5557-435d-8227-cc003247eb0b","block_type":"box","text":"countries. In addition, changes in government administrations or economic or monetary policies in the United States","page_number":67,"box":{"x":69,"y":460,"width":830,"height":12}},{"id":"06ddf0e4-8aef-4a9a-aaf8-212af156d528","block_type":"box","text":"or abroad could result in appreciation or depreciation of portfolio securities and could favorably or adversely affect a","page_number":67,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"4378c321-7618-4c5a-923e-9abb9eeb1b99","block_type":"box","text":"Fund’s operations.","page_number":67,"box":{"x":70,"y":491,"width":130,"height":11}},{"id":"196bedf7-7f1b-4bba-ba46-45ac24b47e2f","block_type":"box","text":"Foreign Economy Risk.","page_number":67,"box":{"x":102,"y":514,"width":158,"height":11}},{"id":"3322f5d4-4a5a-43d4-98a8-73bbc8f82581","block_type":"box","text":"The economies of certain foreign markets often do not compare favorably with that of the","page_number":67,"box":{"x":267,"y":513,"width":636,"height":12}},{"id":"e2ef9517-615a-45f2-8ca8-36f5032ddf13","block_type":"box","text":"United States with respect to such issues as growth of gross national product, reinvestment of capital, resources,","page_number":67,"box":{"x":70,"y":528,"width":812,"height":12}},{"id":"178e1851-412c-4af9-adc7-38c301282f6b","block_type":"box","text":"and balance of payments position. Certain such economies may rely heavily on particular industries or foreign capital","page_number":67,"box":{"x":69,"y":543,"width":835,"height":12}},{"id":"3e21ce4e-8db7-42dd-870c-c138b8499823","block_type":"box","text":"and are more vulnerable to diplomatic developments, the imposition of economic sanctions against a particular","page_number":67,"box":{"x":69,"y":559,"width":795,"height":11}},{"id":"b057c6fa-66f8-4f50-bc18-002b192aa55f","block_type":"box","text":"country or countries, changes in international trading patterns, trade barriers, and other protectionist or retaliatory","page_number":67,"box":{"x":69,"y":574,"width":817,"height":11}},{"id":"a2799a75-8c30-402d-b358-d4f9850eb5b7","block_type":"box","text":"measures.","page_number":67,"box":{"x":69,"y":591,"width":74,"height":7}},{"id":"2d8cda45-7fcf-4430-af0b-0bc493352f8e","block_type":"box","text":"Currency Risk and Exchange Risk.","page_number":67,"box":{"x":102,"y":612,"width":240,"height":11}},{"id":"e989e7ca-fbe6-4be2-b4a7-cb3dfc020fff","block_type":"box","text":"Because foreign securities generally are denominated and pay dividends or","page_number":67,"box":{"x":349,"y":612,"width":534,"height":11}},{"id":"5c66855e-beff-464e-b8ad-a9aa2a486171","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":67,"box":{"x":70,"y":627,"width":838,"height":11}},{"id":"b4ea5007-769d-48a6-b93c-9b27defb5054","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":67,"box":{"x":69,"y":642,"width":833,"height":11}},{"id":"ee73f63f-7a33-403e-bab1-249fc2950e9d","block_type":"box","text":"a foreign currency, a security denominated in that currency loses value because the currency is worth fewer U.S.","page_number":67,"box":{"x":69,"y":657,"width":801,"height":11}},{"id":"938779d3-a415-4186-9b9f-4ad86c00e6ea","block_type":"box","text":"dollars. Conversely, when the U.S. dollar decreases in value against a foreign currency, a security denominated in","page_number":67,"box":{"x":69,"y":672,"width":808,"height":11}},{"id":"57458f8c-6d28-47d4-8a3b-8e760ae89df9","block_type":"box","text":"that currency gains value because the currency is worth more U.S. dollars. This risk, generally known as “currency","page_number":67,"box":{"x":68,"y":687,"width":816,"height":11}},{"id":"71f9e657-3f9d-4b91-8bb9-3e8fa048fb76","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":67,"box":{"x":69,"y":702,"width":814,"height":12}},{"id":"2fbe115e-e344-436a-803a-d8dd8b04d39c","block_type":"box","text":"those returns. Currency exchange rates can also be affected unpredictably by intervention by U.S. or foreign","page_number":67,"box":{"x":68,"y":717,"width":771,"height":12}},{"id":"d1ef21a6-cb90-4d59-8d5d-40d8e44ace8c","block_type":"box","text":"governments or central banks, or the failure to intervene, or buy currency controls or political developments in the","page_number":67,"box":{"x":68,"y":732,"width":813,"height":12}},{"id":"f8ba69bf-6cea-46d3-bc05-bdb161e3bfde","block_type":"box","text":"United States or abroad.","page_number":67,"box":{"x":70,"y":748,"width":172,"height":9}},{"id":"56ab7880-e231-49b8-901b-17ad5e63fabe","block_type":"box","text":"Governmental Supervision and Regulation/Accounting Standards.","page_number":67,"box":{"x":102,"y":770,"width":466,"height":12}},{"id":"edc30b90-2bb9-415c-942a-6507926fba97","block_type":"box","text":"Many foreign governments supervise and","page_number":67,"box":{"x":575,"y":770,"width":293,"height":12}},{"id":"3db71ed0-948b-4cfc-a7ea-439a5c8f0a3d","block_type":"box","text":"regulate stock exchanges, brokers and the sale of securities less than does the United States. Some countries may","page_number":67,"box":{"x":69,"y":785,"width":828,"height":12}},{"id":"c4736cb9-53ba-4fca-8739-c1484e2f623d","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":67,"box":{"x":69,"y":801,"width":826,"height":11}},{"id":"ecc10361-6d38-4ca5-8515-eab02e182a78","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":67,"box":{"x":69,"y":816,"width":778,"height":11}},{"id":"92acbcd1-6bb0-4648-97f4-92edb82c124f","block_type":"box","text":"securities based on nonpublic information about that company. Accounting standards in other countries are not","page_number":67,"box":{"x":69,"y":831,"width":794,"height":11}},{"id":"c8431bbb-862d-45b3-af0b-ae0c79a40b3c","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":67,"box":{"x":69,"y":846,"width":831,"height":11}},{"id":"76a2d593-7201-4a9a-8637-6a4256d20c89","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":67,"box":{"x":69,"y":861,"width":840,"height":11}},{"id":"6bd0fec1-c301-481b-ab38-8f1e43f77be2","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":67,"box":{"x":69,"y":876,"width":760,"height":11}},{"id":"110ffecd-7897-42b7-966a-a24dbb9d99d9","block_type":"box","text":"restrictions, through penalties and otherwise, on foreign investments by U.S. investors such as the Fund. If such","page_number":67,"box":{"x":69,"y":891,"width":803,"height":12}},{"id":"4ae4b939-76a4-4b94-a0ca-3d988bcb377e","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":67,"box":{"x":69,"y":906,"width":798,"height":12}},{"id":"a520cd62-089c-4e7c-b41a-b561fcd5be86","block_type":"box","text":"II-29","page_number":67,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"77790e62-c49d-471a-991a-2a36b0cbf855","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":67,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b02d2333-4d13-44ba-9d7d-67054449ca87","block_type":"box","text":"assets in U.S. securities. Also, brokerage commissions and other costs of buying or selling securities often are","page_number":68,"box":{"x":69,"y":45,"width":793,"height":11}},{"id":"feec95c4-f0ce-42e4-83da-96376631da47","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":68,"box":{"x":69,"y":60,"width":797,"height":11}},{"id":"dab26c9d-8090-4cdc-b957-8e3edb67ea05","block_type":"box","text":"investments.","page_number":68,"box":{"x":70,"y":75,"width":89,"height":9}},{"id":"e7665618-731f-4c90-b7fc-e6a1a0e2c86d","block_type":"box","text":"Cer tain Risks of Holding Fund Assets Outside the United States.","page_number":68,"box":{"x":102,"y":98,"width":458,"height":11}},{"id":"a778daf8-999c-4b21-9cf1-39b354d1564e","block_type":"box","text":"A Fund generally holds its foreign securities and","page_number":68,"box":{"x":566,"y":98,"width":341,"height":11}},{"id":"afa6581b-ea7c-42ea-ad1d-7aa3df440cd9","block_type":"box","text":"cash in foreign banks and securities depositories. Some foreign banks and securities depositories may be recently","page_number":68,"box":{"x":69,"y":113,"width":819,"height":11}},{"id":"c2769a71-5600-4654-b2b4-463ea6639a25","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":68,"box":{"x":69,"y":128,"width":813,"height":11}},{"id":"c924ec00-35d2-454b-a74d-be2abb9f1a26","block_type":"box","text":"their operations. Also, the laws of certain countries may put limits on a Fund’s ability to recover its assets if a foreign","page_number":68,"box":{"x":68,"y":143,"width":838,"height":11}},{"id":"c803aa18-f4df-4fec-984d-7db162bd6494","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":68,"box":{"x":69,"y":158,"width":835,"height":11}},{"id":"45d91955-de3e-4712-b1a1-235c70759fde","block_type":"box","text":"for a Fund to buy, sell and hold securities in certain foreign markets than in the United States. The increased","page_number":68,"box":{"x":68,"y":173,"width":777,"height":11}},{"id":"8eaa2d33-9031-4ea7-a5dd-eb650165cf0d","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":68,"box":{"x":69,"y":188,"width":831,"height":12}},{"id":"f3fa1292-009f-44a8-afed-ae9eb408f4e3","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":68,"box":{"x":70,"y":203,"width":828,"height":12}},{"id":"6534f537-b1de-4182-b0a5-92cf63573eea","block_type":"box","text":"States.","page_number":68,"box":{"x":69,"y":219,"width":49,"height":8}},{"id":"42dc3f38-ba89-4fd1-83bb-3e712e058f6f","block_type":"box","text":"Publicly Available Information.","page_number":68,"box":{"x":102,"y":241,"width":210,"height":11}},{"id":"d5016228-a06e-464e-8570-472a6289800f","block_type":"box","text":"In general, less information is publicly available with respect to foreign issuers","page_number":68,"box":{"x":319,"y":241,"width":558,"height":11}},{"id":"31486f8c-4fbe-4eab-acf1-b67f6b6b7281","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":68,"box":{"x":68,"y":256,"width":779,"height":12}},{"id":"3003c9cc-5d5d-4d27-98e7-b15813c294dc","block_type":"box","text":"accounting and financial reporting requirements applicable to issuers in the United States. While the volume of","page_number":68,"box":{"x":69,"y":271,"width":793,"height":12}},{"id":"d6a67c4f-85a2-4dac-a37b-e209090ed4cd","block_type":"box","text":"transactions effected on foreign stock exchanges has increased in recent years, it remains appreciably below that of","page_number":68,"box":{"x":68,"y":286,"width":834,"height":12}},{"id":"36812f8a-d1d7-4596-9c6c-f44192130010","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":68,"box":{"x":68,"y":302,"width":841,"height":11}},{"id":"79d800ac-d859-4662-962f-b6a854092109","block_type":"box","text":"be more volatile than, comparable investments in securities in U.S. companies. In addition, there is generally less","page_number":68,"box":{"x":69,"y":317,"width":813,"height":11}},{"id":"864d47f5-721f-47e1-a554-f6efb0843b17","block_type":"box","text":"government supervision and regulation of securities exchanges, brokers and issuers in foreign countries than in the","page_number":68,"box":{"x":68,"y":332,"width":827,"height":11}},{"id":"aab3c18c-79d9-4818-85ab-a39ef0f9a6d9","block_type":"box","text":"United States.","page_number":68,"box":{"x":70,"y":347,"width":99,"height":9}},{"id":"0e6cb237-f25c-423a-8b9b-26bc5844b970","block_type":"box","text":"Settlement Risk.","page_number":68,"box":{"x":102,"y":370,"width":116,"height":9}},{"id":"0e1ef5db-1b2a-4a0e-8254-18a3cf58cec8","block_type":"box","text":"Settlement and clearance procedures in certain foreign markets differ significantly from those","page_number":68,"box":{"x":225,"y":370,"width":669,"height":11}},{"id":"1a1ca616-79a3-47b9-b566-9934b4c03d45","block_type":"box","text":"in the United States. Supervisory authorities may also be unable to apply standards which are comparable with those","page_number":68,"box":{"x":70,"y":385,"width":837,"height":11}},{"id":"932e4869-adb8-4ea0-ba0a-b38aa8c2b708","block_type":"box","text":"in the United States. Foreign settlement procedures and trade regulations also may involve certain risks (such as","page_number":68,"box":{"x":70,"y":400,"width":808,"height":11}},{"id":"be906074-327c-4d93-b5cc-cc071c1d897d","block_type":"box","text":"delays in payment for or delivery of securities) not typically generated by the settlement of U.S. investments.","page_number":68,"box":{"x":69,"y":415,"width":772,"height":11}},{"id":"1c198f4c-a138-4a28-985d-c938dc7622b9","block_type":"box","text":"Communications between the United States and emerging market countries may be unreliable, increasing the","page_number":68,"box":{"x":102,"y":438,"width":781,"height":11}},{"id":"d8de2e6e-cf3f-4216-adff-fe7fbe709582","block_type":"box","text":"risk of delayed settlements or losses of security certificates in markets that still rely on physical settlement.","page_number":68,"box":{"x":69,"y":453,"width":771,"height":11}},{"id":"5661ef98-f8f2-44a6-974e-db04138e7bd5","block_type":"box","text":"Settlements in certain foreign countries at times have not kept pace with the number of securities transactions;","page_number":68,"box":{"x":69,"y":468,"width":797,"height":11}},{"id":"d405ee95-2f02-4c77-a421-2a7a64c1696e","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":68,"box":{"x":68,"y":483,"width":802,"height":11}},{"id":"80a06115-7c8e-4f0b-83d6-326beaa8e3b2","block_type":"box","text":"settling a purchase of securities, it may miss attractive investment opportunities and certain of its assets may be","page_number":68,"box":{"x":69,"y":498,"width":812,"height":11}},{"id":"d721d614-c95d-4936-a394-2ade3766454f","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":68,"box":{"x":69,"y":513,"width":821,"height":12}},{"id":"b27e991c-3e9a-41db-84f3-ce5ad74c4bb0","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":68,"box":{"x":69,"y":528,"width":816,"height":12}},{"id":"4aaf3f74-54ba-4a67-89ca-416b357f1edf","block_type":"box","text":"another party, the Fund could be liable to that party for any losses incurred.","page_number":68,"box":{"x":69,"y":543,"width":539,"height":12}},{"id":"2499fcee-23fa-4c87-a31c-84f9eb0c315e","block_type":"box","text":"Because of uncertainties in the operation of settlement systems in individual markets, competing claims may","page_number":68,"box":{"x":102,"y":566,"width":781,"height":11}},{"id":"4ed45200-0f79-4154-9f17-d844770a6836","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":68,"box":{"x":69,"y":581,"width":810,"height":11}},{"id":"8631d7aa-1f15-4285-92e0-aedd877250d3","block_type":"box","text":"otherwise be limited or inadequate to meet the Fund’s claims in case of such event.","page_number":68,"box":{"x":69,"y":596,"width":601,"height":11}},{"id":"c02f6233-bf33-4daf-a19c-3529ebfe704f","block_type":"box","text":"Sovereign Debt.","page_number":68,"box":{"x":102,"y":619,"width":111,"height":11}},{"id":"e93074a5-3116-43d7-b070-87f228c2ac82","block_type":"box","text":"Investment in sovereign debt can involve a high degree of risk. The governmental entity that","page_number":68,"box":{"x":221,"y":619,"width":653,"height":11}},{"id":"aab19679-1829-4d78-897b-cc48c60b4610","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":68,"box":{"x":69,"y":634,"width":837,"height":12}},{"id":"41cd19d0-bfdd-4806-ae55-63447f176857","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":68,"box":{"x":69,"y":649,"width":826,"height":12}},{"id":"0b8eeff7-93d5-4f83-ad5d-db978ca2463b","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":68,"box":{"x":69,"y":664,"width":798,"height":12}},{"id":"6caa4682-514e-4052-97c5-f82caac7afee","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":68,"box":{"x":69,"y":680,"width":809,"height":11}},{"id":"6410bb7e-61ee-4b18-af66-d92793240052","block_type":"box","text":"service burden to the economy as a whole, the governmental entity’s policy towards the International Monetary Fund","page_number":68,"box":{"x":69,"y":695,"width":832,"height":11}},{"id":"57734f6d-e020-4636-9770-c49ec08e6e6a","block_type":"box","text":"and the political constraints to which a governmental entity may be subject. Governmental entities may also be","page_number":68,"box":{"x":69,"y":710,"width":790,"height":11}},{"id":"4077f6ac-492f-46f7-8b66-de6951d81531","block_type":"box","text":"dependent on expected disbursements from foreign governments, multilateral agencies and others abroad to reduce","page_number":68,"box":{"x":69,"y":725,"width":831,"height":11}},{"id":"7bc326eb-5813-45df-9be2-74912b2f0f8c","block_type":"box","text":"principal and interest arrearages on their debt. The commitment on the part of these governments, agencies and","page_number":68,"box":{"x":70,"y":740,"width":805,"height":11}},{"id":"79db1fcc-4716-4b6e-8483-178759ab488b","block_type":"box","text":"others to make such disbursements may be conditioned on the implementation of economic reforms and/or","page_number":68,"box":{"x":69,"y":755,"width":772,"height":11}},{"id":"014a3b96-22ff-42c1-a205-2086c9bf1e61","block_type":"box","text":"economic performance and the timely service of such debtor’s obligations. Failure to implement such reforms,","page_number":68,"box":{"x":69,"y":770,"width":789,"height":12}},{"id":"55708af7-f4a0-4100-8fcd-a6975e8d5134","block_type":"box","text":"achieve such levels of economic performance or repay principal or interest when due may result in the cancellation of","page_number":68,"box":{"x":69,"y":785,"width":839,"height":12}},{"id":"a430bbd6-ad8a-4ee6-a718-8bf6b5cbd631","block_type":"box","text":"such third parties’ commitments to lend funds to the governmental entity, which may further impair such debtor’s","page_number":68,"box":{"x":69,"y":801,"width":810,"height":11}},{"id":"06f75a96-a1a9-4f9e-8b20-e61839746d42","block_type":"box","text":"ability or willingness to timely service its debts. Consequently, governmental entities may default on their sovereign","page_number":68,"box":{"x":69,"y":816,"width":821,"height":11}},{"id":"68b465a8-7242-44ac-922d-6b1e294a5758","block_type":"box","text":"debt.","page_number":68,"box":{"x":69,"y":831,"width":34,"height":9}},{"id":"d23ded71-39cb-42be-9e12-3b1b90af9e18","block_type":"box","text":"Holders of sovereign debt may be requested to participate in the rescheduling of such debt and to extend further","page_number":68,"box":{"x":102,"y":853,"width":807,"height":12}},{"id":"dce89eba-ec59-4826-a7c6-0ecae20b2720","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":68,"box":{"x":70,"y":869,"width":814,"height":11}},{"id":"716ca054-0be5-484e-aa6a-5672f307d05d","block_type":"box","text":"legal remedies for collecting on such debt.","page_number":68,"box":{"x":70,"y":884,"width":300,"height":11}},{"id":"8fe703dd-d580-4188-b09a-611d2ef57193","block_type":"box","text":"II-30","page_number":68,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f5ddb51c-eb32-4115-9297-f2da13caaee4","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":68,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2ef27be6-c79f-4890-8b24-d0c9cb02b5cb","block_type":"box","text":"Withholding Tax Reclaims Risk","page_number":69,"box":{"x":103,"y":45,"width":215,"height":11}},{"id":"fe8ac15d-b4aa-46b5-a152-14aa3955c678","block_type":"box","text":". A Fund may file claims to recover foreign withholding taxes on dividend and","page_number":69,"box":{"x":318,"y":45,"width":542,"height":11}},{"id":"5d1d14dd-18f5-401a-ae2f-d4529597a6af","block_type":"box","text":"interest income (if any) received from issuers in certain countries and capital gains on the disposition of stocks or","page_number":69,"box":{"x":70,"y":60,"width":813,"height":11}},{"id":"9b2cae45-5a0a-43f4-a03e-f66e3b58a26f","block_type":"box","text":"securities where such withholding tax reclaim is possible. Whether or when a Fund will receive a withholding tax","page_number":69,"box":{"x":69,"y":75,"width":795,"height":11}},{"id":"8a7d5ee4-334a-44a7-a746-ef82d67858af","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":69,"box":{"x":69,"y":90,"width":799,"height":11}},{"id":"9e6ccc82-44ae-4f97-a5f3-aea71ee25d44","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":69,"box":{"x":68,"y":105,"width":838,"height":11}},{"id":"772864cb-ece0-4e39-9a84-9c071a1c51aa","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":69,"box":{"x":68,"y":120,"width":807,"height":12}},{"id":"a9c0620c-8301-426a-ba2a-bd09341fd74f","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":69,"box":{"x":69,"y":135,"width":814,"height":12}},{"id":"e45fed4d-f965-4424-a873-415d33d7edd5","block_type":"box","text":"down partially or in full, which will adversely affect the Fund’s net asset value. Shareholders in a Fund at the time an","page_number":69,"box":{"x":69,"y":150,"width":831,"height":12}},{"id":"5e0ffd6c-cf43-497e-b308-4497dc0ed84e","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":69,"box":{"x":69,"y":166,"width":819,"height":11}},{"id":"b6f78b84-0a5c-4517-98b0-12dfa35b7e5e","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":69,"box":{"x":68,"y":181,"width":833,"height":11}},{"id":"607ea250-92e9-4171-af9c-a38c96f1f496","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":69,"box":{"x":69,"y":196,"width":814,"height":11}},{"id":"e79b844e-c16c-4339-971b-6cfc787a5edf","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":69,"box":{"x":68,"y":211,"width":835,"height":11}},{"id":"aa155f5b-5be0-459f-9492-a1e2e7a7e098","block_type":"box","text":"in the Fund’s net asset value.","page_number":69,"box":{"x":70,"y":226,"width":209,"height":9}},{"id":"c804d87f-d659-48e8-839c-b79088068cc5","block_type":"box","text":"U.S. Economic Trading Par tners Risk.","page_number":69,"box":{"x":103,"y":249,"width":263,"height":11}},{"id":"f7973786-411a-411a-bacf-9822cf3cce42","block_type":"box","text":"The United States is a significant, and in some cases the most significant,","page_number":69,"box":{"x":372,"y":249,"width":532,"height":11}},{"id":"ebe09308-3a27-4803-9798-9bf6f08fdf55","block_type":"box","text":"trading partner of, or foreign investor in, certain countries in which a Fund may invest. As a result, economic","page_number":69,"box":{"x":68,"y":264,"width":773,"height":11}},{"id":"c8fe3f1a-06ab-49c7-8735-fbf6a88f1ca6","block_type":"box","text":"conditions of such countries may be particularly affected by changes in the U.S. economy. A decrease in U.S. imports","page_number":69,"box":{"x":69,"y":279,"width":839,"height":11}},{"id":"756c0a31-1ae4-426f-8501-33a8a994d087","block_type":"box","text":"or exports, new trade and financial regulations or tariffs, changes in the U.S. dollar exchange rate or an economic","page_number":69,"box":{"x":69,"y":294,"width":812,"height":11}},{"id":"28974ab7-af67-4b48-a487-e7f7db66ce1e","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":69,"box":{"x":69,"y":309,"width":803,"height":11}},{"id":"6c01c9a0-7fbb-4a65-834a-71040f6c26b8","block_type":"box","text":"result, securities to which the Fund has exposure. Circumstances could arise that could prevent the timely payment","page_number":69,"box":{"x":69,"y":324,"width":824,"height":11}},{"id":"0a843104-2c8a-4205-9bb3-a9a90a837c80","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":69,"box":{"x":69,"y":339,"width":819,"height":12}},{"id":"1f61da8b-6e51-4299-9f41-be944b57f70c","block_type":"box","text":"would result in substantial negative consequences for the U.S. economy and the global financial system.","page_number":69,"box":{"x":68,"y":355,"width":746,"height":11}},{"id":"f84d6197-1d97-445a-badc-4e112fac6a01","block_type":"box","text":"There are strained relations between the United States and a number of foreign countries, including traditional","page_number":69,"box":{"x":101,"y":377,"width":787,"height":12}},{"id":"a943f844-63a6-4755-9ef9-914efecdaa99","block_type":"box","text":"allies, such as certain European countries, and historical adversaries, such as North Korea, Iran, China and Russia.","page_number":69,"box":{"x":69,"y":392,"width":827,"height":11}},{"id":"185df22a-8e3b-4967-94d1-427040e3fd15","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":69,"box":{"x":70,"y":407,"width":817,"height":12}},{"id":"cdd29ace-07f0-48a1-9794-7e214a2c5189","block_type":"box","text":"United States for trade. The United States has also experienced increased internal unrest and discord. If these","page_number":69,"box":{"x":70,"y":423,"width":791,"height":11}},{"id":"2558827c-7967-4f61-9788-e1bcab7e1346","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":69,"box":{"x":68,"y":438,"width":803,"height":11}},{"id":"c075df48-3700-4c23-aed3-4bb0dbfd778c","block_type":"box","text":"Fund may invest.","page_number":69,"box":{"x":70,"y":453,"width":117,"height":11}},{"id":"2ac93116-8cef-4fe8-992a-13bf9cb42cda","block_type":"box","text":"Funding Agreements.","page_number":69,"box":{"x":102,"y":476,"width":154,"height":11}},{"id":"94025009-c6fc-4ae8-8a5a-85b88a1587e8","block_type":"box","text":"Certain Funds may invest in Guaranteed Investment Contracts and similar funding","page_number":69,"box":{"x":262,"y":475,"width":584,"height":12}},{"id":"7b8f6ee2-5f7a-4710-907c-07bff063ba4d","block_type":"box","text":"agreements. In connection with these investments, a Fund makes cash contributions to a deposit fund of an","page_number":69,"box":{"x":69,"y":491,"width":773,"height":11}},{"id":"ea9589d5-80f3-45cd-8601-003cc8604ec7","block_type":"box","text":"insurance company’s general account. The insurance company then credits to the Fund on a monthly basis","page_number":69,"box":{"x":70,"y":506,"width":761,"height":11}},{"id":"e95353e2-6d26-4dce-ba33-45825abb28ee","block_type":"box","text":"guaranteed interest, which is based on an index. The funding agreements provide that this guaranteed interest will","page_number":69,"box":{"x":68,"y":521,"width":817,"height":11}},{"id":"a43c4b28-a03a-4332-9062-75d60ed3c975","block_type":"box","text":"not be less than a certain minimum rate. The purchase price paid for a funding agreement becomes part of the","page_number":69,"box":{"x":69,"y":536,"width":794,"height":11}},{"id":"5b1b81e6-4971-4db4-a120-91fbb8f8144e","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":69,"box":{"x":68,"y":551,"width":839,"height":11}},{"id":"91327a35-1f59-4a02-8efe-b9e115f577a8","block_type":"box","text":"Generally, funding agreements are not assignable or transferable without the permission of the issuing insurance","page_number":69,"box":{"x":69,"y":566,"width":806,"height":11}},{"id":"666b4cf0-e7d3-4f95-af4d-db534cf0bf36","block_type":"box","text":"companies, and an active secondary market in some funding agreements does not currently exist.","page_number":69,"box":{"x":69,"y":581,"width":700,"height":12}},{"id":"ba954a82-7275-4906-a0fa-f5b3f7102991","block_type":"box","text":"Guarantees.","page_number":69,"box":{"x":102,"y":604,"width":87,"height":9}},{"id":"0e13a1ad-72eb-4cff-bb6a-b66c4307dc9f","block_type":"box","text":"A Fund may purchase securities which contain guarantees issued by an entity separate from the","page_number":69,"box":{"x":194,"y":604,"width":685,"height":11}},{"id":"b4bdd9ea-2570-457e-ab9a-bcabd124b0e2","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":69,"box":{"x":70,"y":619,"width":797,"height":11}},{"id":"7a842a0b-f746-45d0-8ab6-5aeac228ee5b","block_type":"box","text":"payment obligations under a security if the issuer is unable to do so.","page_number":69,"box":{"x":70,"y":634,"width":488,"height":12}},{"id":"b449e4b3-6e7a-40ee-9aa5-a4e42e84edaf","block_type":"box","text":"Illiquid Investments.","page_number":69,"box":{"x":102,"y":657,"width":146,"height":11}},{"id":"bc07c691-1149-41c7-a065-9d35f6d7ca17","block_type":"box","text":"Each Fund may not acquire any illiquid investment if, immediately after the acquisition, a","page_number":69,"box":{"x":255,"y":657,"width":630,"height":11}},{"id":"34b4327f-43f4-42fb-a8e7-2b463d4f5a99","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":69,"box":{"x":70,"y":672,"width":787,"height":11}},{"id":"75b1f785-5382-4745-94fb-bd188f05fb58","block_type":"box","text":"investment that a Fund reasonably expects cannot be sold or disposed of in current market conditions in seven","page_number":69,"box":{"x":70,"y":687,"width":792,"height":11}},{"id":"cf55b9c1-0fc7-42c7-a4fb-054ea2a36509","block_type":"box","text":"calendar days or less without the sale or disposition significantly changing the market value of the investment. Liquid","page_number":69,"box":{"x":69,"y":702,"width":834,"height":12}},{"id":"75426e5f-78f1-45b0-b032-28b2f39c897e","block_type":"box","text":"investments may become illiquid after purchase by a Fund, particularly during periods of market turmoil. There can be","page_number":69,"box":{"x":70,"y":717,"width":838,"height":12}},{"id":"f7c592fe-5f81-42c6-8200-7033b461302d","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":69,"box":{"x":69,"y":732,"width":824,"height":12}},{"id":"0eca82c6-7d8c-4e12-af18-8f3752c22940","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":69,"box":{"x":69,"y":748,"width":838,"height":11}},{"id":"cd94b627-bc19-4595-87f5-eeea27dc5e6d","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":69,"box":{"x":70,"y":763,"width":816,"height":11}},{"id":"09482b6c-4e1a-478a-92f8-795c4b133337","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":69,"box":{"x":68,"y":778,"width":832,"height":11}},{"id":"63cfd22e-4095-4dcf-b295-62fcb3596c4f","block_type":"box","text":"Fund is limited in its ability to dispose of illiquid investments during periods when shareholders are redeeming or","page_number":69,"box":{"x":70,"y":793,"width":803,"height":11}},{"id":"f371f83e-4729-472e-b888-e7feb1dc1835","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":69,"box":{"x":69,"y":808,"width":817,"height":11}},{"id":"4199afbc-811d-424f-90d0-f1f1fd9d5f44","block_type":"box","text":"meet redemption requests and illiquid securities will become a larger portion of the Fund’s holdings. If illiquid","page_number":69,"box":{"x":69,"y":823,"width":781,"height":12}},{"id":"91ae1a2c-88e1-4814-ab41-bfcb56e60cd3","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":69,"box":{"x":70,"y":838,"width":822,"height":12}},{"id":"e3319d87-c948-4e2a-96a5-08d2dfa5fa3f","block_type":"box","text":"defined below) will require that certain remedial actions be taken. Illiquid investments may trade at a discount from","page_number":69,"box":{"x":69,"y":853,"width":822,"height":12}},{"id":"5e357b6a-6f30-4eee-99f6-1fd564ed6c99","block_type":"box","text":"comparable liquid investments. Investment of a Fund’s assets in illiquid investments may restrict the ability of the","page_number":69,"box":{"x":69,"y":869,"width":813,"height":11}},{"id":"dc4f87f2-fe4d-41b8-9b8d-73e65aba49db","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":69,"box":{"x":70,"y":884,"width":814,"height":11}},{"id":"2593fc7d-ca55-4d5e-bd7c-fabdfadfe1e6","block_type":"box","text":"market opportunities. The risks associated with illiquidity will be particularly acute where a Fund’s operations require","page_number":69,"box":{"x":69,"y":899,"width":833,"height":11}},{"id":"581eb642-08d6-46ae-82ee-5beacba98a0f","block_type":"box","text":"II-31","page_number":69,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a0def0f7-cb10-4db9-9608-6da946fe40ca","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":69,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"613a78e6-097d-4896-bffc-e484a75b1e7c","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":70,"box":{"x":69,"y":45,"width":801,"height":11}},{"id":"46764ecb-5762-49a5-8846-1e3e14b4007d","block_type":"box","text":"short-term cash requirements or incurring capital losses on the sale of illiquid investments.","page_number":70,"box":{"x":69,"y":60,"width":651,"height":11}},{"id":"4fbe8a46-6204-4016-9f4c-8239b7a9fdd7","block_type":"box","text":"Index Funds.","page_number":70,"box":{"x":102,"y":83,"width":91,"height":8}},{"id":"e2859fb8-a23d-4039-8b01-e1f44e2a6674","block_type":"box","text":"Cash Flows; Expenses.","page_number":70,"box":{"x":102,"y":105,"width":162,"height":11}},{"id":"19fec8fd-f359-42bb-a5a5-4558cf7059b8","block_type":"box","text":"The ability of each Fund to satisfy its investment objective depends to some extent on","page_number":70,"box":{"x":270,"y":105,"width":613,"height":11}},{"id":"37fbecee-f8a7-4174-ba10-24e01c075a82","block_type":"box","text":"the Manager’s ability to manage cash flow (primarily from purchases and redemptions and distributions from the","page_number":70,"box":{"x":68,"y":120,"width":803,"height":12}},{"id":"09b123d6-aa44-4620-a5aa-9d5bef0afe7f","block_type":"box","text":"Fund’s investments). The Manager will make investment changes to a Fund’s portfolio to accommodate cash flow","page_number":70,"box":{"x":70,"y":135,"width":810,"height":12}},{"id":"5949df2b-c6f8-4ecc-a3a5-7bb4ba31b67d","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":70,"box":{"x":68,"y":150,"width":823,"height":12}},{"id":"b6cbd4f3-3ea6-4582-901a-da58ee712606","block_type":"box","text":"the investment performance of each index is a hypothetical number which does not take into account brokerage","page_number":70,"box":{"x":68,"y":166,"width":799,"height":11}},{"id":"a5fa5af8-398a-487d-b2f4-ac9ec31a2bd7","block_type":"box","text":"commissions and other transaction costs, custody and other costs of investing, and any incremental operating costs","page_number":70,"box":{"x":69,"y":181,"width":831,"height":11}},{"id":"485f8c8e-aeae-4c1c-bc5e-fb2c9e9a3353","block_type":"box","text":"(","page_number":70,"box":{"x":69,"y":196,"width":3,"height":11}},{"id":"5065433c-6bd2-4f33-a1f0-a6ff7a01648f","block_type":"box","text":"e.g.","page_number":70,"box":{"x":74,"y":197,"width":25,"height":10}},{"id":"6ad20138-406d-41c1-9084-d96c4a80ef13","block_type":"box","text":", transfer agency and accounting costs) that will be borne by the Funds. Finally, since each Fund seeks to","page_number":70,"box":{"x":101,"y":196,"width":749,"height":11}},{"id":"f84ebfef-b997-47b1-babd-c008f72b9228","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":70,"box":{"x":69,"y":211,"width":774,"height":11}},{"id":"8ac41037-8c38-40a4-a632-399de7791bc8","block_type":"box","text":"particular security as an investment.","page_number":70,"box":{"x":70,"y":226,"width":258,"height":11}},{"id":"b60da64e-9a5a-4818-b727-560751039f5f","block_type":"box","text":"Tracking Error Risk","page_number":70,"box":{"x":103,"y":249,"width":132,"height":11}},{"id":"cb1e535a-03ec-4d3d-8ad5-c46dd7e58dd3","block_type":"box","text":". A Fund may be subject to tracking error, which is the divergence of the Fund’s performance","page_number":70,"box":{"x":236,"y":249,"width":658,"height":11}},{"id":"cd204e17-7cb9-4b96-97d4-f021fdbca2e8","block_type":"box","text":"from that of the Underlying Index. Tracking error may occur because of differences between the securities and other","page_number":70,"box":{"x":68,"y":264,"width":827,"height":11}},{"id":"4f61a6c8-f799-4065-9f7b-96efb29febc7","block_type":"box","text":"instruments held in the Fund’s portfolio and those included in the Underlying Index, pricing differences (including, as","page_number":70,"box":{"x":70,"y":279,"width":830,"height":11}},{"id":"4454628e-50df-4915-9d6d-018680a501db","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":70,"box":{"x":69,"y":294,"width":827,"height":11}},{"id":"69456b3f-3481-4cef-9fe4-ce633426de5b","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":70,"box":{"x":68,"y":309,"width":797,"height":11}},{"id":"68c4cca5-7120-445a-9806-f52744fdeee0","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":70,"box":{"x":70,"y":324,"width":787,"height":12}},{"id":"2303d3c2-209f-41da-b6af-bce61670fc50","block_type":"box","text":"distributions, interest, the requirements to maintain pass-through tax treatment, portfolio transactions carried out to","page_number":70,"box":{"x":69,"y":339,"width":830,"height":12}},{"id":"126c0431-b686-46d3-8d81-8bd0c680233f","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":70,"box":{"x":69,"y":355,"width":838,"height":11}},{"id":"e4f01f10-21fd-43da-a493-23da8623e18d","block_type":"box","text":"complying with various new or existing regulatory requirements. These risks may be heightened during times of","page_number":70,"box":{"x":69,"y":370,"width":791,"height":11}},{"id":"432bc4d9-de2a-4cd2-823e-0cba85367830","block_type":"box","text":"increased market volatility or other unusual market conditions. In addition, tracking error may result because the","page_number":70,"box":{"x":70,"y":385,"width":801,"height":11}},{"id":"33603a88-de48-41f5-ae56-cf170390f011","block_type":"box","text":"Fund incurs fees and expenses, while the Underlying Index does not.","page_number":70,"box":{"x":70,"y":400,"width":487,"height":11}},{"id":"7ebfb777-cf22-4727-a64e-198b93041d73","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":70,"box":{"x":101,"y":423,"width":799,"height":11}},{"id":"7364fdc0-6be3-4e37-a95b-e4b45abc3928","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":70,"box":{"x":69,"y":438,"width":803,"height":11}},{"id":"15629612-be53-490d-9484-e633b674806e","block_type":"box","text":"price growth that does not appear to be supported by publicly available information on the business and assets of","page_number":70,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"dfcd2756-cd1d-4d47-973f-4e8b97ad2dda","block_type":"box","text":"the issuer, unusual or significant short interest or lending activity, negative sentiment, suspended trading or incorrect","page_number":70,"box":{"x":68,"y":468,"width":838,"height":11}},{"id":"b20bef1c-9c00-4195-9ef3-21e5d10b4e25","block_type":"box","text":"free-float calculations, which could be indicators of possible irregularities, miscalculations or even fraud). If it","page_number":70,"box":{"x":68,"y":483,"width":778,"height":11}},{"id":"7ff797ff-6b2a-435d-82ec-aab1d7eb148d","block_type":"box","text":"identifies such behavior, the Manager may, where appropriate, alert the index provider as to the alleged issue. The","page_number":70,"box":{"x":70,"y":498,"width":816,"height":11}},{"id":"a125d2cf-4899-47de-9944-8a3b364f8f71","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":70,"box":{"x":70,"y":513,"width":836,"height":11}},{"id":"c0283257-bcc9-4f67-9f08-0b2d122fd2b9","block_type":"box","text":"the rebalancing of its index. If the securities continue to be included in the index, the Manager may underweight or","page_number":70,"box":{"x":68,"y":528,"width":819,"height":12}},{"id":"7a78f598-82d4-4e87-aefc-354e076e774c","block_type":"box","text":"exclude such securities from a Fund’s portfolio and, if it does so, such Fund will be subject to increased tracking","page_number":70,"box":{"x":69,"y":543,"width":804,"height":12}},{"id":"2b58e720-b98f-4bf5-aa23-28ac62b56869","block_type":"box","text":"error due to the divergence in the securities included in its portfolio from its underlying index. The application of the","page_number":70,"box":{"x":69,"y":559,"width":825,"height":11}},{"id":"f7b69198-ed87-4667-8da5-9188606dd988","block_type":"box","text":"abovementioned analysis and screening to a Fund and its Underlying Index is in the sole discretion of the Manager","page_number":70,"box":{"x":69,"y":574,"width":818,"height":11}},{"id":"17ea22c8-aaa5-4331-a37c-aab8abb46c39","block_type":"box","text":"and its affiliates (without any guarantees). The analysis and screening may not exclude any or all high risk securities","page_number":70,"box":{"x":69,"y":589,"width":829,"height":11}},{"id":"8598f952-d183-47d9-a7d8-5b4e77d14cb0","block_type":"box","text":"from an Underlying Index or a Fund’s portfolio, and the inclusion of such securities will result in an adverse impact to","page_number":70,"box":{"x":68,"y":604,"width":835,"height":11}},{"id":"072260f5-acca-4e44-a97a-7fccbb9ff6bf","block_type":"box","text":"the Fund’s net asset value if one or more such securities declines in value.","page_number":70,"box":{"x":68,"y":619,"width":536,"height":9}},{"id":"d5b643f9-0a5d-4a66-81f8-da3068bb2e60","block_type":"box","text":"S&P 500®","page_number":70,"box":{"x":102,"y":642,"width":64,"height":9}},{"id":"4b9bbfb1-201a-4ef8-9852-f74cc5895870","block_type":"box","text":"0®","page_number":70,"box":{"x":166,"y":642,"width":6,"height":5}},{"id":"db0df9d8-9287-426d-a099-ac66e050ab30","block_type":"box","text":"Index (“S&P 500”).","page_number":70,"box":{"x":178,"y":642,"width":134,"height":11}},{"id":"c6b48142-90fe-4828-a15a-657ce11951d6","block_type":"box","text":"“Standard & Poor’s","page_number":70,"box":{"x":320,"y":642,"width":136,"height":9}},{"id":"7d45c0da-3b03-4a4c-9ce9-17498db22066","block_type":"box","text":"®","page_number":70,"box":{"x":457,"y":642,"width":6,"height":5}},{"id":"ce17e36c-0612-43a9-96b0-d88ba8078f0d","block_type":"box","text":",” “S&P","page_number":70,"box":{"x":465,"y":642,"width":53,"height":10}},{"id":"224d1683-308e-4d1b-a479-a950906678b9","block_type":"box","text":"®","page_number":70,"box":{"x":518,"y":642,"width":6,"height":5}},{"id":"c05be609-8ba5-4c00-b0f8-560110fbcce5","block_type":"box","text":",” “S&P 500","page_number":70,"box":{"x":526,"y":642,"width":87,"height":10}},{"id":"33a63f07-c0bb-4437-a412-e51187c0be87","block_type":"box","text":"®","page_number":70,"box":{"x":614,"y":642,"width":6,"height":5}},{"id":"b0c01491-1f70-4528-bb5e-a5b5b949a7b1","block_type":"box","text":",” “Standard & Poor’s 500,” and “500”","page_number":70,"box":{"x":621,"y":642,"width":280,"height":10}},{"id":"f2cbdd8a-94d4-479a-8f9d-1afd5dac1521","block_type":"box","text":"are trademarks of S&P Global Inc. and have been licensed for use by certain mutual funds sponsored and advised by","page_number":70,"box":{"x":69,"y":657,"width":837,"height":11}},{"id":"f10df830-2f7b-4594-a175-e12d5827421d","block_type":"box","text":"BlackRock or its affiliates (“BlackRock Funds”). No Fund is sponsored, endorsed, sold or promoted by S&P, a division","page_number":70,"box":{"x":70,"y":672,"width":836,"height":11}},{"id":"04a83597-7be0-4c90-adab-9d38b4d05a8e","block_type":"box","text":"of S&P Global Inc. S&P makes no representation regarding the advisability of investing in any Fund. S&P makes no","page_number":70,"box":{"x":69,"y":687,"width":818,"height":11}},{"id":"35d892dd-f6d5-41b7-90f0-24eff88770cb","block_type":"box","text":"representation or warranty, express or implied, to the owners of shares of a Fund or any member of the public","page_number":70,"box":{"x":69,"y":702,"width":783,"height":11}},{"id":"c76c18f3-fe5a-432b-aa7e-58a889d4e08f","block_type":"box","text":"regarding the advisability of investing in securities generally or in a Fund particularly or the ability of the S&P 500 to","page_number":70,"box":{"x":69,"y":717,"width":823,"height":12}},{"id":"abccace0-b3f8-4965-bc4a-cb5bb0156f53","block_type":"box","text":"track general stock market performance. S&P’s only relationship to certain Funds is the licensing of certain","page_number":70,"box":{"x":68,"y":732,"width":769,"height":12}},{"id":"227ae9e0-d0fa-4fb7-a3a4-6812ba1267eb","block_type":"box","text":"trademarks and trade names of S&P and of the S&P 500 which is determined, composed and calculated by S&P","page_number":70,"box":{"x":68,"y":748,"width":804,"height":11}},{"id":"97d7099f-3d02-4a00-ba82-0ad855aa4aea","block_type":"box","text":"without regard to the Funds. S&P has no obligation to take the needs of a Fund or the owners of shares of a Fund","page_number":70,"box":{"x":68,"y":763,"width":811,"height":11}},{"id":"08638d13-9d3f-4026-baa0-dbb4f2c1a08c","block_type":"box","text":"into consideration in determining, composing or calculating the S&P 500. S&P is not responsible for and has not","page_number":70,"box":{"x":70,"y":778,"width":803,"height":11}},{"id":"808af30a-11ff-4d43-ba7b-f29bd5dcd0ed","block_type":"box","text":"participated in the determination of the prices and amount of any Fund or the timing of the issuance or sale of","page_number":70,"box":{"x":70,"y":793,"width":787,"height":11}},{"id":"e99c292f-8fca-4563-b244-34402c088095","block_type":"box","text":"shares of a Fund or in the determination or calculation of the equation by which a Fund is to be converted into cash.","page_number":70,"box":{"x":69,"y":808,"width":828,"height":11}},{"id":"fae3d067-7e7d-4460-8ef3-a78fb614bde7","block_type":"box","text":"S&P has no obligation or liability in connection with the administration, marketing or trading of any Fund.","page_number":70,"box":{"x":69,"y":823,"width":742,"height":12}},{"id":"165a8097-8088-479c-a90e-bf7931d157d0","block_type":"box","text":"S&P does not guarantee the accuracy and/or the completeness of the S&P 500 Index or any data included","page_number":70,"box":{"x":102,"y":846,"width":761,"height":11}},{"id":"a0a97210-9f9b-4c0a-b59b-167e313c127d","block_type":"box","text":"therein, and S&P shall have no liability for any errors, omissions, or interruptions therein. S&P makes no warranty,","page_number":70,"box":{"x":68,"y":861,"width":816,"height":11}},{"id":"789ea204-d2a9-479b-96bd-0524e8668a88","block_type":"box","text":"express or implied, as to results to be obtained by a Fund, owners of shares of a Fund, or any other person or entity","page_number":70,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"af8e3bdb-f84e-440e-8ff1-b3dbbf407514","block_type":"box","text":"from the use of the S&P 500 Index or any data included therein. S&P makes no express or implied warranties and","page_number":70,"box":{"x":68,"y":891,"width":815,"height":11}},{"id":"aa4dd9a3-da7f-44eb-a700-b83a02709894","block_type":"box","text":"expressly disclaims all warranties of merchantability or fitness for a particular purpose or use with respect to the S&P","page_number":70,"box":{"x":69,"y":906,"width":840,"height":12}},{"id":"7bcd52be-07f9-4cb9-b3a0-990061615607","block_type":"box","text":"II-32","page_number":70,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"fa3d9680-dec0-494c-b5e7-4c6554f479ff","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":70,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c54d8efd-a247-4f88-8f00-907bc57b2722","block_type":"box","text":"500 Index or any data included therein. Without limiting any of the foregoing, in no event shall S&P have any liability","page_number":71,"box":{"x":69,"y":45,"width":826,"height":11}},{"id":"8fac136e-f643-4df8-9ce6-f96085b7ea12","block_type":"box","text":"for any special, punitive, indirect, or consequential damages (including lost profits), even if notified of the possibility","page_number":71,"box":{"x":68,"y":60,"width":827,"height":11}},{"id":"c1d65fdf-d6b7-4579-9174-cac1160c710e","block_type":"box","text":"of such damages.","page_number":71,"box":{"x":69,"y":75,"width":125,"height":11}},{"id":"572d352d-67de-4790-b4e9-63ef067f01b0","block_type":"box","text":"Russell®","page_number":71,"box":{"x":102,"y":98,"width":52,"height":9}},{"id":"0cec63ce-12f5-4ef9-8fc5-ac907cd88170","block_type":"box","text":"l®","page_number":71,"box":{"x":154,"y":98,"width":6,"height":4}},{"id":"e72e0510-58bb-40b0-ad92-6ef0d2169844","block_type":"box","text":"Indexes.","page_number":71,"box":{"x":166,"y":98,"width":57,"height":9}},{"id":"31d670a4-b040-41ef-bb51-44eb5cd02193","block_type":"box","text":"No Fund is promoted, sponsored or endorsed by, nor in any way affiliated with Russell","page_number":71,"box":{"x":231,"y":98,"width":611,"height":11}},{"id":"23a36088-a7ad-44cb-82f9-2198467bfb18","block_type":"box","text":"Investments. Russell Investments is not responsible for and has not reviewed any Fund nor any associated literature","page_number":71,"box":{"x":70,"y":113,"width":831,"height":11}},{"id":"029bb029-0fc6-4558-a30c-839ef2d38b28","block_type":"box","text":"or publications and Russell Investments makes no representation or warranty, express or implied, as to their","page_number":71,"box":{"x":69,"y":128,"width":776,"height":11}},{"id":"a8a12b91-3a72-4693-8580-cda7681dd2c8","block_type":"box","text":"accuracy, or completeness, or otherwise.","page_number":71,"box":{"x":69,"y":143,"width":291,"height":11}},{"id":"1746ff4f-4f1d-49b8-bf60-6385e7f767c5","block_type":"box","text":"Russell Investments reserves the right, at any time and without notice, to alter, amend, terminate or in any way","page_number":71,"box":{"x":102,"y":166,"width":794,"height":11}},{"id":"463d6a4a-7811-43ab-880b-b247bfbe6c98","block_type":"box","text":"change a Russell Index. Russell Investments has no obligation to take the needs of any particular Fund or its","page_number":71,"box":{"x":69,"y":181,"width":778,"height":11}},{"id":"6e9a789f-57b7-4bad-81c9-98acbd2494e8","block_type":"box","text":"participants or any other product or person into consideration in determining, composing or calculating the Russell","page_number":71,"box":{"x":70,"y":196,"width":815,"height":11}},{"id":"4466f908-120c-467f-afe9-8adb992d0625","block_type":"box","text":"Index.","page_number":71,"box":{"x":70,"y":211,"width":40,"height":9}},{"id":"a4aab130-5459-4ecd-86a7-a8638c24675b","block_type":"box","text":"Russell Investments’ publication of the Russell Indexes in no way suggests or implies an opinion by Russell","page_number":71,"box":{"x":102,"y":234,"width":766,"height":11}},{"id":"eaac676d-d590-4e15-84b4-0b699f3568fe","block_type":"box","text":"Investments as to the attractiveness or appropriateness of investment in any or all securities upon which the Russell","page_number":71,"box":{"x":70,"y":249,"width":833,"height":11}},{"id":"a838f4b8-9af5-4591-9b02-e797ba65736c","block_type":"box","text":"Indexes is based. Russell Investments makes no representation, warranty, or guarantee as to the accuracy,","page_number":71,"box":{"x":70,"y":264,"width":765,"height":11}},{"id":"6c955ad8-71fb-483b-a3ee-c0a42e6c6701","block_type":"box","text":"completeness, reliability, or otherwise of the Russell Indexes or any data included in the Russell Indexes. Russell","page_number":71,"box":{"x":69,"y":279,"width":807,"height":11}},{"id":"3dd0942b-39c9-4c34-8a49-93e533876cc7","block_type":"box","text":"Investments makes no representation or warranty regarding the use, or the results of use, of the Russell Indexes or","page_number":71,"box":{"x":70,"y":294,"width":826,"height":11}},{"id":"50a0127f-32ef-4c16-9894-aaa5186010c2","block_type":"box","text":"any data included therein, or any security (or combination thereof) comprising the Russell Indexes. Russell","page_number":71,"box":{"x":69,"y":309,"width":757,"height":11}},{"id":"afb33e07-919c-420b-b237-7a51cd7f6cb9","block_type":"box","text":"Investments makes no other express or implied warranty, and expressly disclaims any warranty, of any kind,","page_number":71,"box":{"x":70,"y":324,"width":767,"height":11}},{"id":"f88bdda7-2fa2-437b-be55-9606308cae3f","block_type":"box","text":"including, without means of limitation, any warranty of merchantability or fitness for a particular purpose with respect","page_number":71,"box":{"x":70,"y":339,"width":833,"height":12}},{"id":"38f113b3-06dd-48bf-b7e2-36399b72100d","block_type":"box","text":"to the Russell Indexes or any data or any security (or combination thereof) included therein.","page_number":71,"box":{"x":68,"y":355,"width":651,"height":11}},{"id":"92e43208-807e-4134-90fc-d710f37e5515","block_type":"box","text":"MSCI Indexes.","page_number":71,"box":{"x":102,"y":377,"width":100,"height":9}},{"id":"7309b959-875e-4069-be2c-b1a2aee060dd","block_type":"box","text":"The MSCI Europe, Australasia and Far East (Capitalization Weighted) Index (“EAFE Index”) and the","page_number":71,"box":{"x":209,"y":377,"width":696,"height":12}},{"id":"061d16a2-cc6a-4793-90fe-69fa17427404","block_type":"box","text":"MSCI All-Country World ex-US Index (“ACWI ex-US Index” and together with the EAFE Index, the “MSCI Indexes” and","page_number":71,"box":{"x":70,"y":392,"width":818,"height":12}},{"id":"c3028c04-d4b5-4fec-b9af-2269759c1fd5","block_type":"box","text":"individually an “MSCI Index”) are the exclusive property of MSCI, Inc. (“MSCI”). The EAFE Index and ACWI ex-US Index","page_number":71,"box":{"x":70,"y":407,"width":837,"height":12}},{"id":"06551630-9f46-45bf-aa9b-05e3b5195abf","block_type":"box","text":"are service marks of MSCI and have been licensed for use by the Manager and its affiliates.","page_number":71,"box":{"x":69,"y":423,"width":658,"height":11}},{"id":"859b8a49-4f3c-4a02-992c-e0e7b349368a","block_type":"box","text":"No Fund is sponsored, endorsed, sold or promoted by MSCI. MSCI makes no representation or warranty, express","page_number":71,"box":{"x":102,"y":445,"width":806,"height":11}},{"id":"90bbb013-c47a-47cb-abb8-be288f03b198","block_type":"box","text":"or implied, to the owners of shares of a Fund or any member of the public regarding the advisability of investing in","page_number":71,"box":{"x":69,"y":460,"width":811,"height":12}},{"id":"f0c12b7d-d432-45bf-ab23-732bc6dffc32","block_type":"box","text":"securities generally or in a Fund particularly or the ability of an MSCI Index to track general stock market","page_number":71,"box":{"x":69,"y":475,"width":743,"height":12}},{"id":"61d8250a-54c8-4f47-8b9d-4573d3f014eb","block_type":"box","text":"performance. MSCI is the licensor of certain trademarks, service marks and trade names of MSCI and of the MSCI","page_number":71,"box":{"x":70,"y":491,"width":819,"height":11}},{"id":"288c9e0c-4180-4eef-bb25-102620fad2ba","block_type":"box","text":"Indexes. MSCI has no obligation to take the needs of any Fund or the owners of shares of a Fund into consideration","page_number":71,"box":{"x":70,"y":506,"width":824,"height":11}},{"id":"49ad155b-ac45-4ff7-b17c-7b00a2f87933","block_type":"box","text":"in determining, composing or calculating an MSCI Index. MSCI is not responsible for and has not participated in the","page_number":71,"box":{"x":70,"y":521,"width":824,"height":11}},{"id":"23bce9ab-6d84-4acc-bcaa-507f8a91c7a7","block_type":"box","text":"determination of the timing of, prices at, or quantities of shares of any Fund to be issued or in the determination or","page_number":71,"box":{"x":69,"y":536,"width":823,"height":11}},{"id":"5625ad82-5b04-40cc-8c49-a0308ea5ef70","block_type":"box","text":"calculation of the equation by which the shares of a Fund are redeemable for cash. MSCI has no obligation or liability","page_number":71,"box":{"x":69,"y":551,"width":835,"height":11}},{"id":"30ec8abf-c86d-413f-8884-ec4fe23916f9","block_type":"box","text":"to owners of shares of a Fund in connection with the administration, marketing or trading of the Fund.","page_number":71,"box":{"x":68,"y":566,"width":724,"height":11}},{"id":"466a4171-f547-4778-8775-79b77e6ea617","block_type":"box","text":"Although MSCI shall obtain information for inclusion in or for use in the calculation of an MSCI Index from","page_number":71,"box":{"x":101,"y":589,"width":751,"height":11}},{"id":"001b5791-a4d1-477e-a0b3-4f7afda48b63","block_type":"box","text":"sources which MSCI considers reliable, MSCI does not guarantee the accuracy and/or the completeness of the MSCI","page_number":71,"box":{"x":69,"y":604,"width":835,"height":11}},{"id":"69686301-af0e-4179-b265-503f2d123cc8","block_type":"box","text":"Index or any data included therein. MSCI makes no warranty, express or implied, as to results to be obtained by","page_number":71,"box":{"x":70,"y":619,"width":797,"height":11}},{"id":"1a5e8e1e-70d0-4955-9411-4921fb3b4f4f","block_type":"box","text":"licensee, licensee’s customers and counterparties, owners of shares of a Fund, or any other person or entity from","page_number":71,"box":{"x":70,"y":634,"width":812,"height":11}},{"id":"bdadf3ca-904a-40cd-83fa-0019d65c423f","block_type":"box","text":"the use of an MSCI Index or any data included therein in connection with the rights licensed hereunder or for any","page_number":71,"box":{"x":68,"y":649,"width":804,"height":12}},{"id":"72c4653c-1fa0-48e9-b872-49b85e99573b","block_type":"box","text":"other use. MSCI makes no express or implied warranties, and hereby expressly disclaims all warranties of","page_number":71,"box":{"x":69,"y":664,"width":758,"height":12}},{"id":"c8e21410-b483-42e4-950c-8775722c55b9","block_type":"box","text":"merchantability or fitness for a particular purpose with respect to an MSCI Index or any data included therein. Without","page_number":71,"box":{"x":69,"y":680,"width":840,"height":11}},{"id":"990d25f4-6569-42f9-9e0b-f7b5fc10e7f0","block_type":"box","text":"limiting any of the foregoing, in no event shall MSCI have any liability for any direct, indirect, special, punitive,","page_number":71,"box":{"x":70,"y":695,"width":777,"height":11}},{"id":"0a08616f-5ac7-47c4-8f38-a6b5df1707ef","block_type":"box","text":"consequential or any other damages (including lost profits) even if notified of the possibility of such damages.","page_number":71,"box":{"x":69,"y":710,"width":782,"height":11}},{"id":"9d97bff8-27e8-4630-8663-e6ba77e8a34c","block_type":"box","text":"Financial Times Stock Exchange (“FTSE”) Indexes.","page_number":71,"box":{"x":102,"y":733,"width":355,"height":11}},{"id":"3907b1fd-a016-4467-9374-5644a0349be5","block_type":"box","text":"No Fund is promoted, sponsored or endorsed by, nor in any","page_number":71,"box":{"x":465,"y":733,"width":422,"height":11}},{"id":"64a86def-bb06-46c7-a1cf-0b5d0918423a","block_type":"box","text":"way affiliated with FTSE. FTSE is not responsible for and has not reviewed any Fund nor any associated literature or","page_number":71,"box":{"x":68,"y":748,"width":824,"height":11}},{"id":"f0d77d7d-a2b2-4571-af5a-511da0c494b0","block_type":"box","text":"publications and FTSE makes no representation or warranty, express or implied, as to their accuracy, or","page_number":71,"box":{"x":70,"y":763,"width":736,"height":11}},{"id":"207c0828-da30-47ce-b11d-f39db63f8e18","block_type":"box","text":"completeness, or otherwise.","page_number":71,"box":{"x":69,"y":778,"width":202,"height":11}},{"id":"e46cda33-346c-4cc7-90cd-c02855116022","block_type":"box","text":"FTSE reserves the right, at any time and without notice, to alter, amend, terminate or in any way change a FTSE","page_number":71,"box":{"x":102,"y":801,"width":794,"height":11}},{"id":"bffba102-db58-421a-b54e-723bab61f57e","block_type":"box","text":"Index. FTSE has no obligation to take the needs of any particular Fund or its participants or any other product or","page_number":71,"box":{"x":70,"y":816,"width":799,"height":11}},{"id":"00e091d1-d51a-4434-b0bc-1fdddb51ad6a","block_type":"box","text":"person into consideration in determining, composing or calculating the FTSE Index.","page_number":71,"box":{"x":70,"y":831,"width":587,"height":11}},{"id":"f75a4a23-9a33-4155-a4b4-2959c12b7ad7","block_type":"box","text":"Bloomberg Indexes.","page_number":71,"box":{"x":102,"y":854,"width":139,"height":11}},{"id":"74c2abbd-7e59-4899-be39-d73f09505c46","block_type":"box","text":"No Fund is promoted, sponsored or endorsed by, nor in any way affiliated with Bloomberg","page_number":71,"box":{"x":249,"y":853,"width":636,"height":12}},{"id":"dfcb9232-9554-4500-a957-67645da57c9a","block_type":"box","text":"Finance L.P. and its affiliates (collectively, “Bloomberg”). Bloomberg is not responsible for nor has it reviewed any","page_number":71,"box":{"x":70,"y":869,"width":809,"height":11}},{"id":"41cd9500-03a6-4202-84d8-b22fc30eb1bf","block_type":"box","text":"Fund nor any associated literature or publications, and Bloomberg makes no representation or warranty, express or","page_number":71,"box":{"x":70,"y":884,"width":821,"height":11}},{"id":"9ae8985a-84eb-4712-9602-a5c5eb6529fd","block_type":"box","text":"implied, as to their accuracy, or completeness, or otherwise.","page_number":71,"box":{"x":70,"y":899,"width":430,"height":11}},{"id":"d5e96308-fe23-4d7d-8492-205d0eb8c9e4","block_type":"box","text":"II-33","page_number":71,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2f21914a-892b-45f0-8912-a5069086b5f8","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":71,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c4e3b662-a0c5-4a8c-a317-b08f27a24a8a","block_type":"box","text":"Bloomberg reserves the right, at any time and without notice, to alter, amend, terminate or in any way change a","page_number":72,"box":{"x":102,"y":45,"width":795,"height":11}},{"id":"1dc945da-5cd8-45ad-b8e3-3a48d5ff6df3","block_type":"box","text":"Bloomberg Index. Bloomberg has no obligation to take the needs of any particular Fund or its participants or any","page_number":72,"box":{"x":70,"y":60,"width":802,"height":11}},{"id":"e779b98e-30b0-4809-ba16-b1bc084998c2","block_type":"box","text":"other product or person into consideration in determining, composing or calculating a Bloomberg Index.","page_number":72,"box":{"x":69,"y":75,"width":735,"height":11}},{"id":"9ea672fc-550d-4e3d-a184-2a1b24609c21","block_type":"box","text":"ICE BofA Indexes.","page_number":72,"box":{"x":102,"y":98,"width":124,"height":9}},{"id":"5b5a6e41-3e7d-436f-b6c8-8d7553b2c66d","block_type":"box","text":"No Fund is promoted, sponsored or endorsed by, nor in any way affiliated with Intercontinental","page_number":72,"box":{"x":233,"y":98,"width":670,"height":11}},{"id":"6f258728-0c9f-4b51-8557-382205cfae76","block_type":"box","text":"Exchange, Inc. and its affiliates (collectively, “ICE”) or Bank of America or its affiliates (collectively, “BofA”). BofA is","page_number":72,"box":{"x":70,"y":113,"width":819,"height":11}},{"id":"458844ec-3848-4578-8420-fa4cb278529a","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":72,"box":{"x":69,"y":128,"width":820,"height":11}},{"id":"54bb505b-bae4-4bc4-867f-701dc475af8a","block_type":"box","text":"under license. Neither ICE nor BofA is responsible for or has reviewed any Fund nor any associated literature or","page_number":72,"box":{"x":69,"y":143,"width":793,"height":11}},{"id":"88c03d35-4b9e-4186-9f33-06c6a13391d7","block_type":"box","text":"publications and ICE and BofA make no representation or warranty, express or implied, as to their accuracy, or","page_number":72,"box":{"x":70,"y":158,"width":785,"height":11}},{"id":"f4dc4f00-35a3-4c47-9a97-cd946ce8053c","block_type":"box","text":"completeness, or otherwise.","page_number":72,"box":{"x":69,"y":173,"width":202,"height":11}},{"id":"90326161-2a42-47c1-aa94-598198a7a74c","block_type":"box","text":"ICE reserves the right, at any time and without notice, to alter, amend, terminate or in any way change an ICE","page_number":72,"box":{"x":102,"y":196,"width":779,"height":11}},{"id":"a92e66b9-cfe8-4574-911d-3569a7684995","block_type":"box","text":"BofA Index. ICE has no obligation to take the needs of any particular Fund or its participants or any other product or","page_number":72,"box":{"x":70,"y":211,"width":825,"height":11}},{"id":"c625d522-5b17-440d-b118-0a5dfc2adee5","block_type":"box","text":"person into consideration in determining, composing or calculating an ICE BofA Index.","page_number":72,"box":{"x":70,"y":226,"width":608,"height":11}},{"id":"94e6228a-46d8-402b-98b5-302fca2e2083","block_type":"box","text":"Indexed and Inverse Securities.","page_number":72,"box":{"x":102,"y":249,"width":228,"height":9}},{"id":"7eca583d-d3ab-4357-a0ff-5fda7dddca83","block_type":"box","text":"A Fund may invest in securities that provide a potential return based on a","page_number":72,"box":{"x":336,"y":249,"width":523,"height":11}},{"id":"3cf19c23-df77-4a02-87a0-16b1e96b534b","block_type":"box","text":"particular index of value or interest rates. For example, a Fund may invest in securities that pay interest based on an","page_number":72,"box":{"x":70,"y":264,"width":831,"height":11}},{"id":"e6626dfa-f6a9-41b3-af75-b09344a8a594","block_type":"box","text":"index of interest rates. The principal amount payable upon maturity of certain securities also may be based on the","page_number":72,"box":{"x":70,"y":279,"width":814,"height":11}},{"id":"ed432509-ef9a-4300-ab0a-92a23785bc45","block_type":"box","text":"value of the index. To the extent a Fund invests in these types of securities, the Fund’s return on such securities will","page_number":72,"box":{"x":68,"y":294,"width":830,"height":11}},{"id":"5647bfbd-5a15-42ed-bdf8-cbf1d4619164","block_type":"box","text":"be subject to risk with respect to the value of the particular index: that is, if the value of the index falls, the value of","page_number":72,"box":{"x":69,"y":309,"width":827,"height":11}},{"id":"cbe4af97-49fd-4d58-b3a4-263428189951","block_type":"box","text":"the indexed securities owned by the Fund will fall. Interest and principal payable on certain securities may also be","page_number":72,"box":{"x":68,"y":324,"width":812,"height":11}},{"id":"cf1b080d-7b83-44e8-9660-ff8b567abe2f","block_type":"box","text":"based on relative changes among particular indices. A Fund may also invest in so-called “inverse floating obligations”","page_number":72,"box":{"x":69,"y":339,"width":837,"height":12}},{"id":"6f55d4cf-101f-44d0-a5c7-e600e929dbf0","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":72,"box":{"x":69,"y":355,"width":781,"height":11}},{"id":"c05b7dc5-fbc8-4423-b46a-7886d3a38cd2","block_type":"box","text":"periodically by a Dutch auction, a remarketing agent, or by reference to a short-term tax-exempt interest rate index). A","page_number":72,"box":{"x":70,"y":370,"width":838,"height":11}},{"id":"4107847f-e175-4fb6-9db6-17e9c22d95e7","block_type":"box","text":"Fund may purchase synthetically-created inverse floating rate bonds evidenced by custodial or trust receipts.","page_number":72,"box":{"x":70,"y":385,"width":771,"height":11}},{"id":"9df402f9-cadf-4489-a0b9-a16810f3c760","block_type":"box","text":"Generally, income on inverse floating rate bonds will decrease when interest rates increase, and will increase when","page_number":72,"box":{"x":69,"y":400,"width":820,"height":11}},{"id":"ee3f341b-0ff8-4daf-9571-267a69d8ac86","block_type":"box","text":"interest rates decrease. Such securities have the effect of providing a degree of investment leverage, since they may","page_number":72,"box":{"x":70,"y":415,"width":835,"height":11}},{"id":"f1410395-c5af-4f24-8518-757b6ed028fc","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":72,"box":{"x":70,"y":430,"width":817,"height":11}},{"id":"06648f18-0c89-48c6-8ce0-2e0f89310563","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":72,"box":{"x":69,"y":445,"width":829,"height":12}},{"id":"83c1ed5c-0682-425b-8f0a-366288e30b3d","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":72,"box":{"x":69,"y":460,"width":804,"height":12}},{"id":"5abbcd4a-4762-4cd8-8c71-31102b83d4f3","block_type":"box","text":"seek to limit the volatility of these securities, a Fund may purchase inverse floating obligations that have shorter-term","page_number":72,"box":{"x":69,"y":475,"width":838,"height":12}},{"id":"afb4d926-cf90-4c98-92d0-6fa19c24a187","block_type":"box","text":"maturities or that contain limitations on the extent to which the interest rate may vary. Certain investments in such","page_number":72,"box":{"x":69,"y":491,"width":819,"height":11}},{"id":"0ec37f29-4479-43dd-9c1c-e13c1a0bf457","block_type":"box","text":"obligations may be illiquid. The Manager believes that indexed and inverse floating obligations represent flexible","page_number":72,"box":{"x":69,"y":506,"width":798,"height":11}},{"id":"d8355aca-326c-47f6-8064-0a7af00572a0","block_type":"box","text":"portfolio management instruments for a Fund that allow the Fund to seek potential investment rewards, hedge other","page_number":72,"box":{"x":70,"y":521,"width":829,"height":11}},{"id":"fbca13f1-1371-4e50-b91d-e6323d27c852","block_type":"box","text":"portfolio positions or vary the degree of investment leverage relatively efficiently under different market conditions. A","page_number":72,"box":{"x":70,"y":536,"width":834,"height":11}},{"id":"fbcf0799-744c-4e9a-abae-6ce7832446e0","block_type":"box","text":"Fund may invest in indexed and inverse securities for hedging purposes or to seek to increase returns. When used for","page_number":72,"box":{"x":70,"y":551,"width":839,"height":11}},{"id":"57fda04e-48af-412b-abe8-a422c56b8e57","block_type":"box","text":"hedging purposes, indexed and inverse securities involve correlation risk. Furthermore, where such a security","page_number":72,"box":{"x":69,"y":566,"width":781,"height":11}},{"id":"e88502e5-103c-416a-ac64-bbb0f381b71e","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":72,"box":{"x":70,"y":581,"width":812,"height":12}},{"id":"1695d748-d329-404f-9e8c-b49989fb5a66","block_type":"box","text":"may be required to pay substantial additional margin to maintain the position.","page_number":72,"box":{"x":69,"y":597,"width":553,"height":11}},{"id":"9d20f637-94cd-4125-b55d-039954f506ca","block_type":"box","text":"The Funds may invest up to 10% of their total assets in leveraged inverse floating rate debt instruments","page_number":72,"box":{"x":101,"y":619,"width":741,"height":11}},{"id":"187e1925-baa1-4927-8f1d-910eb87d620a","block_type":"box","text":"(“inverse floaters”). Inverse floaters are securities the potential of which is inversely related to changes in interest","page_number":72,"box":{"x":69,"y":634,"width":815,"height":12}},{"id":"b5f5ce99-8664-452f-94c4-6a96fbf9872a","block_type":"box","text":"rates. In general, the return on inverse floaters will decrease when short-term interest rates increase and increase","page_number":72,"box":{"x":69,"y":649,"width":817,"height":12}},{"id":"5e11e916-74b1-4efe-84a1-389fecc71d81","block_type":"box","text":"when short-term rates decrease. Municipal tender option bonds, both taxable and tax-exempt, which may include","page_number":72,"box":{"x":68,"y":665,"width":805,"height":11}},{"id":"2e6c7445-dc2b-4e46-a605-e1097281c700","block_type":"box","text":"inverse floating rate debt instruments, (including residual interests thereon) are excluded from this 10% limitation.","page_number":72,"box":{"x":70,"y":680,"width":813,"height":11}},{"id":"4b6eeefa-a479-4d01-a640-394bf9d18da2","block_type":"box","text":"Inflation Risk.","page_number":72,"box":{"x":102,"y":702,"width":100,"height":9}},{"id":"6aaaf212-4716-412f-b04f-fc21d91e11ee","block_type":"box","text":"Like all funds, the Funds are subject to inflation risk. Inflation risk is the risk that the present","page_number":72,"box":{"x":209,"y":702,"width":663,"height":11}},{"id":"782ba828-2513-46c2-9de4-e772dab543ad","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":72,"box":{"x":68,"y":717,"width":820,"height":12}},{"id":"f0169921-9c07-4baf-a541-453adca6ed68","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":72,"box":{"x":70,"y":732,"width":792,"height":11}},{"id":"db23b3e1-1ff0-4628-a15c-75be56c1b537","block_type":"box","text":"Inflation rates may change frequently and significantly due to a number of potential factors, including, among others,","page_number":72,"box":{"x":70,"y":748,"width":829,"height":11}},{"id":"53bc5707-e1bb-4dc4-8684-4f10e06df488","block_type":"box","text":"unexpected economic shifts or changes in fiscal or monetary policies.","page_number":72,"box":{"x":69,"y":763,"width":497,"height":11}},{"id":"610f8b17-b220-490e-b67e-4719ddc1cd72","block_type":"box","text":"Initial Public Offering (“IPO”) Risk.","page_number":72,"box":{"x":102,"y":785,"width":253,"height":12}},{"id":"c15ec1b9-3066-40d4-980f-a660e4d744bc","block_type":"box","text":"The volume of IPOs and the levels at which the newly issued stocks trade in","page_number":72,"box":{"x":361,"y":785,"width":540,"height":12}},{"id":"d32e93fa-aaff-498c-a1ae-332a5e19a635","block_type":"box","text":"the secondary market are affected by the performance of the stock market overall. If IPOs are brought to the market,","page_number":72,"box":{"x":68,"y":801,"width":836,"height":11}},{"id":"32430a30-9681-4d53-bec8-6070ef9b3c9d","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":72,"box":{"x":69,"y":816,"width":815,"height":11}},{"id":"12179dad-aa77-4f49-9970-fb8b51af2b3c","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":72,"box":{"x":69,"y":831,"width":795,"height":11}},{"id":"6d2759f6-02be-4f4f-b100-0c29df34868f","block_type":"box","text":"securities involved in IPOs are often subject to greater and more unpredictable price changes than more established","page_number":72,"box":{"x":69,"y":846,"width":829,"height":11}},{"id":"04fb7e7b-df9e-4725-be7c-ff9c1536682b","block_type":"box","text":"stocks. IPOs have the potential to produce substantial gains. A Fund may hold shares from an IPO for only a short","page_number":72,"box":{"x":69,"y":861,"width":814,"height":11}},{"id":"11f23b6d-76c1-40b2-a569-48bc19cb1f17","block_type":"box","text":"period of time given possible price volatility. This may result in increased portfolio turnover and expenses, such as","page_number":72,"box":{"x":70,"y":876,"width":813,"height":11}},{"id":"333f7d1a-eb1f-4c5b-aaca-7a459a21fe08","block_type":"box","text":"commissions and transaction costs, and potentially result in taxable gains that the Fund will subsequently distribute","page_number":72,"box":{"x":69,"y":891,"width":828,"height":12}},{"id":"eb7ae745-015a-4423-b1ae-40217e4dc084","block_type":"box","text":"to shareholders. There is no assurance that any Fund will have access to profitable IPOs and therefore investors","page_number":72,"box":{"x":68,"y":906,"width":802,"height":12}},{"id":"19bb40de-1f40-4d53-9036-5c83dd8b2190","block_type":"box","text":"II-34","page_number":72,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"31d4380f-6724-486a-9b47-793425e10ff5","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":72,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a51a1385-9108-4d4a-a767-388769b56755","block_type":"box","text":"should not rely on any past gains from IPOs as an indication of future performance. The investment performance of a","page_number":73,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"7a8ba71e-b469-487f-91b2-0469d9086dd1","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":73,"box":{"x":70,"y":60,"width":832,"height":11}},{"id":"253fa68c-0f30-48f5-b52d-53f6a6524bed","block_type":"box","text":"is able to do so. In addition, as a Fund increases in size, the impact of IPOs on its performance will generally","page_number":73,"box":{"x":70,"y":75,"width":777,"height":11}},{"id":"4517bfbc-6b61-4fda-9669-35bc1b8b3164","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":73,"box":{"x":69,"y":90,"width":810,"height":11}},{"id":"3caad34c-9e10-4d35-9403-ab7786bcef47","block_type":"box","text":"market capitalizations. Securities issued in IPOs have no trading history, and information about the companies may","page_number":73,"box":{"x":69,"y":105,"width":823,"height":11}},{"id":"7326487b-a615-4a15-9249-b2a71718df38","block_type":"box","text":"be available for very limited periods.","page_number":73,"box":{"x":69,"y":120,"width":257,"height":11}},{"id":"bd4b3984-b9f4-49bb-847f-2fa30ca7df0e","block_type":"box","text":"Investment in Emerging Markets.","page_number":73,"box":{"x":102,"y":143,"width":242,"height":11}},{"id":"35360538-847a-4341-b576-ffdc34fe1308","block_type":"box","text":"General.","page_number":73,"box":{"x":102,"y":166,"width":58,"height":9}},{"id":"6692af67-b812-4bdd-b55f-d40ec773ee46","block_type":"box","text":"Certain Funds may invest in the securities of issuers domiciled in various countries with emerging capital","page_number":73,"box":{"x":102,"y":188,"width":748,"height":12}},{"id":"9a5e2ff3-ba4a-4964-be76-1b8572a94da2","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":73,"box":{"x":69,"y":204,"width":840,"height":11}},{"id":"3db0a104-d2c1-4a4d-8853-dd5c91ef0b8d","block_type":"box","text":"that is (i) generally recognized to be an emerging market country by the international financial community, such as","page_number":73,"box":{"x":68,"y":218,"width":813,"height":12}},{"id":"b93a30e7-266a-440d-9bc9-871f8cbc3d82","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":73,"box":{"x":68,"y":234,"width":836,"height":11}},{"id":"9602215f-ff88-402d-a44f-6601961633ce","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":73,"box":{"x":69,"y":249,"width":839,"height":11}},{"id":"7b826d30-0483-4427-9a69-d83ac54d0835","block_type":"box","text":"index that is generally representative of emerging markets. Countries with emerging markets can be found in regions","page_number":73,"box":{"x":70,"y":264,"width":831,"height":11}},{"id":"47b05621-149d-4f70-84ac-add91f31aedc","block_type":"box","text":"such as Asia, Latin America, Eastern Europe and Africa.","page_number":73,"box":{"x":69,"y":279,"width":396,"height":11}},{"id":"bd8390ac-12c5-456d-a217-789bc96f4f1c","block_type":"box","text":"Investments in the securities of issuers domiciled in countries with emerging capital markets involve certain","page_number":73,"box":{"x":102,"y":302,"width":770,"height":11}},{"id":"7f9f13e7-92b8-44ea-9b7d-8c35202e4cdb","block_type":"box","text":"additional risks that do not generally apply to investments in securities of issuers in more developed capital markets,","page_number":73,"box":{"x":69,"y":317,"width":835,"height":11}},{"id":"7a7355f6-f5e0-4a6b-9a0e-d391c3ca7eef","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":73,"box":{"x":69,"y":332,"width":828,"height":11}},{"id":"f44b26c1-f03b-42fe-892a-9cf452786c44","block_type":"box","text":"securities, as compared to securities of comparable issuers in more developed capital markets; (ii) uncertain","page_number":73,"box":{"x":69,"y":347,"width":779,"height":11}},{"id":"66a447a5-479a-4528-b5cf-943c2be8bc0b","block_type":"box","text":"national policies and social, political and economic instability, increasing the potential for expropriation of assets,","page_number":73,"box":{"x":69,"y":362,"width":809,"height":11}},{"id":"2a15de34-4d4b-4e2e-b10c-a8755691d351","block_type":"box","text":"confiscatory taxation, high rates of inflation or unfavorable diplomatic developments; (iii) possible fluctuations in","page_number":73,"box":{"x":69,"y":377,"width":800,"height":12}},{"id":"14638194-e7af-4dc9-911d-84a35fdb8ef0","block_type":"box","text":"exchange rates, differing legal systems and the existence or possible imposition of exchange controls, custodial","page_number":73,"box":{"x":69,"y":392,"width":800,"height":12}},{"id":"c7ff0c48-bf10-4919-9314-2ae2341297a8","block_type":"box","text":"restrictions or other foreign or U.S. Governmental laws or restrictions applicable to such investments; (iv) national","page_number":73,"box":{"x":69,"y":407,"width":811,"height":12}},{"id":"9157e9e5-6d39-45cf-83fc-9c8e3957eeb6","block_type":"box","text":"policies that may limit a Fund’s investment opportunities such as restrictions on investment in issuers or industries","page_number":73,"box":{"x":70,"y":423,"width":824,"height":11}},{"id":"3f0bce45-5006-4962-a169-abe9cf5bf635","block_type":"box","text":"deemed sensitive to national interests; and (v) the lack or relatively early development of legal structures governing","page_number":73,"box":{"x":69,"y":438,"width":823,"height":11}},{"id":"f5cd38df-dd14-4a64-ac8a-7c4c69d26603","block_type":"box","text":"private and foreign investments and private property. In addition to withholding taxes on investment income, some","page_number":73,"box":{"x":70,"y":453,"width":813,"height":11}},{"id":"ae03c74f-6d0d-476c-896b-9010e29ec6c6","block_type":"box","text":"countries with emerging markets may impose differential capital gains taxes on foreign investors.","page_number":73,"box":{"x":69,"y":468,"width":694,"height":11}},{"id":"366a85f1-ec3c-4f2c-84fd-67eeb242f42f","block_type":"box","text":"Political and economic structures in emerging market countries may be undergoing significant evolution and","page_number":73,"box":{"x":102,"y":491,"width":767,"height":11}},{"id":"c54920b3-f200-4035-91d0-529cf7c2c0a0","block_type":"box","text":"rapid development, and these countries may lack the social, political and economic stability characteristic of more","page_number":73,"box":{"x":69,"y":506,"width":814,"height":11}},{"id":"48c1ee6c-790c-4815-936c-adc03c6ce058","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":73,"box":{"x":69,"y":521,"width":792,"height":11}},{"id":"8d917b3a-f8f4-4987-a1fe-ff6120d44797","block_type":"box","text":"markets will continue to present viable investment opportunities for a Fund. In the past, governments of such nations","page_number":73,"box":{"x":69,"y":536,"width":838,"height":11}},{"id":"324cc566-c2bc-4b6c-9ff8-18c44165b228","block_type":"box","text":"have expropriated substantial amounts of private property, and most claims of the property owners have never been","page_number":73,"box":{"x":69,"y":551,"width":828,"height":11}},{"id":"e2a3eaee-5f64-4c73-b16d-a1187c92cc89","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":73,"box":{"x":68,"y":566,"width":816,"height":11}},{"id":"589ab95b-6492-46ff-be39-0476b03e041c","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":73,"box":{"x":70,"y":581,"width":802,"height":11}},{"id":"1b2a8207-f681-416a-ad38-367b718c32e4","block_type":"box","text":"including the risks of nationalization or expropriation of assets, may be heightened. In addition, unanticipated political","page_number":73,"box":{"x":70,"y":596,"width":838,"height":12}},{"id":"5c3e4a43-15f3-4ad8-b8c5-ad74a3d0ca0b","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":73,"box":{"x":69,"y":612,"width":788,"height":11}},{"id":"3daa3484-9240-4c55-aaf2-6bff57824afc","block_type":"box","text":"additional investments. The small size and inexperience of the securities markets in certain of these countries and","page_number":73,"box":{"x":69,"y":627,"width":819,"height":11}},{"id":"65626734-beb4-4fd5-8628-2d90db7f2816","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":73,"box":{"x":68,"y":642,"width":838,"height":11}},{"id":"1884ea04-755c-42dc-8277-27837d51d763","block_type":"box","text":"volatile than investments in more established markets.","page_number":73,"box":{"x":68,"y":657,"width":392,"height":9}},{"id":"51ec729f-6436-4cef-874f-329ceef8fda2","block_type":"box","text":"Also, there may be less publicly available information about issuers in emerging markets than would be available","page_number":73,"box":{"x":101,"y":680,"width":805,"height":11}},{"id":"7e8d4b35-922b-4207-b230-a5a0f0767b35","block_type":"box","text":"about issuers in more developed capital markets, and such issuers may not be subject to accounting, auditing and","page_number":73,"box":{"x":69,"y":695,"width":818,"height":11}},{"id":"6a99211d-d4e6-4401-8581-1eaf364a76da","block_type":"box","text":"financial reporting standards and requirements comparable to those to which U.S. companies are subject. In certain","page_number":73,"box":{"x":68,"y":710,"width":831,"height":11}},{"id":"1a7e5a2b-24da-4fde-8dae-1b235803f9f7","block_type":"box","text":"countries with emerging capital markets, reporting standards vary widely. As a result, traditional investment","page_number":73,"box":{"x":69,"y":725,"width":768,"height":11}},{"id":"4bfaf9f6-72ee-47c9-aafb-84376dbaee0b","block_type":"box","text":"measurements used in the United States, such as price/earnings ratios, may not be applicable. Emerging market","page_number":73,"box":{"x":69,"y":740,"width":811,"height":11}},{"id":"52a77193-ce96-410e-88cc-85fc4e168d0c","block_type":"box","text":"securities may be substantially less liquid than, and more volatile than, those of mature markets, and company","page_number":73,"box":{"x":69,"y":755,"width":795,"height":11}},{"id":"215e879d-e5fd-4325-8a9f-c21246de8578","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":73,"box":{"x":69,"y":770,"width":814,"height":12}},{"id":"c1a82f95-5442-40f0-b962-92588fea319e","block_type":"box","text":"acquisition or disposal of securities.","page_number":73,"box":{"x":69,"y":785,"width":257,"height":11}},{"id":"6104f4f7-82f4-41e5-8fec-3799e9d87d8b","block_type":"box","text":"Practices in relation to settlement of securities transactions in emerging markets involve higher risks than those","page_number":73,"box":{"x":102,"y":808,"width":800,"height":11}},{"id":"cee27322-cb05-4484-94b5-75d6b0cdba85","block_type":"box","text":"in developed markets, in part because a Fund will need to use brokers and counterparties that are less well","page_number":73,"box":{"x":70,"y":823,"width":769,"height":11}},{"id":"5eb372e3-f627-4eb6-8983-4c209d89b39e","block_type":"box","text":"capitalized, and custody and registration of assets in some countries may be unreliable. The possibility of fraud,","page_number":73,"box":{"x":69,"y":838,"width":798,"height":12}},{"id":"6ca862e3-435f-43b4-beb3-5359a14b8487","block_type":"box","text":"negligence, undue influence being exerted by the issuer or refusal to recognize ownership exists in some emerging","page_number":73,"box":{"x":69,"y":853,"width":819,"height":12}},{"id":"3769cf7d-fb7a-4a63-b79e-c2792b428bba","block_type":"box","text":"markets, and, along with other factors, could result in ownership registration being completely lost. A Fund would","page_number":73,"box":{"x":69,"y":869,"width":804,"height":11}},{"id":"e9bd1957-eab0-4456-91dd-1af52a3a7d68","block_type":"box","text":"absorb any loss resulting from such registration problems and may have no successful claim for compensation.","page_number":73,"box":{"x":69,"y":884,"width":794,"height":11}},{"id":"a3699e1c-8974-49a6-ace5-bda4164e7bce","block_type":"box","text":"II-35","page_number":73,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"66a594de-580f-4810-8171-239d82c6d949","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":73,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"827c16a1-6e6f-49d7-969c-2d8df7f5b621","block_type":"box","text":"Investment in non-dollar denominated securities including securities from issuers located in emerging market","page_number":74,"box":{"x":102,"y":45,"width":778,"height":11}},{"id":"3c93e726-7540-4f98-ac81-69e4da70f090","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":74,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"61563e0c-37d4-4677-91ec-7855787665bd","block_type":"box","text":"foreign currencies pending investment or conversion into U.S. dollars. Some of these instruments may have the","page_number":74,"box":{"x":68,"y":75,"width":797,"height":11}},{"id":"26d81b57-c482-4792-b084-ce0c009e484b","block_type":"box","text":"characteristics of futures contracts. In addition, certain Funds may engage in foreign currency exchange transactions","page_number":74,"box":{"x":69,"y":90,"width":832,"height":11}},{"id":"b02391cd-ce57-4e3a-b030-fd69a8edab06","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":74,"box":{"x":68,"y":105,"width":799,"height":11}},{"id":"5012282d-1b2d-4d15-ac71-6503ae9bf66a","block_type":"box","text":"performance. These investments and transactions involving foreign securities, currencies, options (including options","page_number":74,"box":{"x":70,"y":120,"width":829,"height":12}},{"id":"98da74d2-93d7-408e-85a6-95b9d3878645","block_type":"box","text":"that relate to foreign currencies), futures, hedging and cross-hedging are described under “Derivatives.”","page_number":74,"box":{"x":68,"y":135,"width":740,"height":12}},{"id":"c80d3569-4f37-4bcb-93ba-3d52e3ec02f6","block_type":"box","text":"Risks of Investing in Asia-Pacific Countries.","page_number":74,"box":{"x":102,"y":158,"width":305,"height":11}},{"id":"edec7c94-9fd8-4947-a035-b8f8a5cadec3","block_type":"box","text":"In addition to the risks of foreign investing and the risks of investing","page_number":74,"box":{"x":414,"y":158,"width":485,"height":11}},{"id":"8f1d5c59-407c-4de5-b9e0-3bcaff7736fe","block_type":"box","text":"in developing markets, the developing market Asia-Pacific countries in which a Fund may invest are subject to certain","page_number":74,"box":{"x":70,"y":173,"width":832,"height":11}},{"id":"7d1a5f81-5d0b-4b68-b2bd-7950c2541ba7","block_type":"box","text":"additional or specific risks. Certain Funds may make substantial investments in Asia-Pacific countries. In many of","page_number":74,"box":{"x":69,"y":188,"width":808,"height":11}},{"id":"9dee58d9-3459-4534-be59-66841ab64259","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":74,"box":{"x":68,"y":203,"width":838,"height":12}},{"id":"6f48ff4d-3fdd-4fd0-834a-5da709597fd7","block_type":"box","text":"representing a limited number of industries, as well as a high concentration of investors and financial intermediaries.","page_number":74,"box":{"x":69,"y":218,"width":834,"height":12}},{"id":"0ab51b79-76b1-4de5-8d03-0b030af39035","block_type":"box","text":"Many of these markets also may be affected by developments with respect to more established markets in the","page_number":74,"box":{"x":70,"y":234,"width":791,"height":11}},{"id":"c84bf061-5428-4d34-831f-b3dc97b27d49","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":74,"box":{"x":69,"y":249,"width":804,"height":11}},{"id":"0e3d13b1-5ac9-4033-a54a-a533faaa32ed","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":74,"box":{"x":69,"y":264,"width":833,"height":11}},{"id":"1b8e3a98-a4ed-415c-8ba3-a3d9fa56cc9e","block_type":"box","text":"requirements for open-end investment companies and the restrictions on foreign investment discussed below, result","page_number":74,"box":{"x":69,"y":279,"width":830,"height":11}},{"id":"4fec369d-b2a0-4c0d-aba1-1075ca3e3c90","block_type":"box","text":"in potentially fewer investment opportunities for a Fund and may have an adverse impact on the investment","page_number":74,"box":{"x":70,"y":294,"width":766,"height":11}},{"id":"13d58d9d-b0df-4fa6-8a7b-27c5bef647da","block_type":"box","text":"performance of the Fund.","page_number":74,"box":{"x":70,"y":309,"width":179,"height":11}},{"id":"1d490cd8-9023-4121-a68e-c7ba6fb19284","block_type":"box","text":"Many of the developing market Asia-Pacific countries may be subject to a greater degree of economic, political","page_number":74,"box":{"x":102,"y":332,"width":784,"height":11}},{"id":"4d0eaf8a-d489-4341-b97d-c6c948014473","block_type":"box","text":"and social instability than is the case in the United States and Western European countries. Such instability may","page_number":74,"box":{"x":69,"y":347,"width":803,"height":11}},{"id":"ebed8a01-8bbb-4bd5-8254-2deb4818ceda","block_type":"box","text":"result from, among other things: (i) authoritarian governments or military involvement in political and economic","page_number":74,"box":{"x":69,"y":362,"width":788,"height":11}},{"id":"e28b00e5-5b8a-48d9-b818-6f56d22bc6de","block_type":"box","text":"decision-making, including changes in government through extra-constitutional means; (ii) popular unrest associated","page_number":74,"box":{"x":69,"y":377,"width":827,"height":12}},{"id":"3cbe9048-8493-440a-86a3-1163168112d0","block_type":"box","text":"with demands for improved political, economic and social conditions; (iii) internal insurgencies; (iv) hostile relations","page_number":74,"box":{"x":68,"y":392,"width":823,"height":12}},{"id":"cd142a89-cf38-4001-8616-cce5e2cad8d6","block_type":"box","text":"with neighboring countries; and (v) ethnic, religious and racial disaffection. In addition, the governments of many of","page_number":74,"box":{"x":68,"y":407,"width":822,"height":12}},{"id":"c2c3791e-2ab6-4e24-8e77-e75a656e997d","block_type":"box","text":"such countries, such as Indonesia, have a substantial role in regulating and supervising the economy. Another risk","page_number":74,"box":{"x":69,"y":423,"width":818,"height":11}},{"id":"b6886db6-c9bd-4ebd-a605-1dd7510ad817","block_type":"box","text":"common to most such countries is that the economy is heavily export oriented and, accordingly, is dependent upon","page_number":74,"box":{"x":69,"y":438,"width":821,"height":11}},{"id":"e003c08a-0dc8-4829-a828-e80a3b521a9b","block_type":"box","text":"international trade. The existence of overburdened infrastructure and obsolete financial systems also presents risks","page_number":74,"box":{"x":70,"y":453,"width":827,"height":11}},{"id":"25631f75-dd8d-41e6-b038-919c321c2bb3","block_type":"box","text":"in certain countries, as do environmental problems. Certain economies also depend to a significant degree upon","page_number":74,"box":{"x":70,"y":468,"width":803,"height":11}},{"id":"049555b5-3c4e-403a-9122-c45bb8aaa5d1","block_type":"box","text":"exports of primary commodities and, therefore, are vulnerable to changes in commodity prices that, in turn, may be","page_number":74,"box":{"x":69,"y":483,"width":824,"height":11}},{"id":"31b68d32-1cae-495a-bfae-bbb9573f753b","block_type":"box","text":"affected by a variety of factors.","page_number":74,"box":{"x":69,"y":498,"width":220,"height":11}},{"id":"ceb5b384-ccd2-4312-bf15-9401f66756e3","block_type":"box","text":"The legal systems in certain developing market Asia-Pacific countries also may have an adverse impact on the","page_number":74,"box":{"x":101,"y":521,"width":785,"height":11}},{"id":"e7e0735c-27a8-4fda-a8d4-8cc76e8e7905","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":74,"box":{"x":70,"y":536,"width":789,"height":11}},{"id":"af7cd0da-f703-4161-b75d-adf7835bfb78","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":74,"box":{"x":69,"y":551,"width":814,"height":11}},{"id":"6c048afe-ee1d-409e-900a-dc829255a892","block_type":"box","text":"clear in certain emerging market Asia-Pacific countries. Similarly, the rights of investors in developing market Asia","page_number":74,"box":{"x":69,"y":566,"width":813,"height":11}},{"id":"f8cdc670-019b-4ec9-a41e-1e7f6ef4f750","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":74,"box":{"x":69,"y":581,"width":777,"height":11}},{"id":"dcdcba8f-7fed-42a6-880c-ab93de9974ef","block_type":"box","text":"impossible to obtain and/or enforce a judgment in a developing market Asia-Pacific country.","page_number":74,"box":{"x":70,"y":596,"width":652,"height":12}},{"id":"d87c42ad-e077-492c-86a2-097944a45324","block_type":"box","text":"Governments of many developing market Asia-Pacific countries have exercised and continue to exercise","page_number":74,"box":{"x":102,"y":619,"width":737,"height":11}},{"id":"891b3443-a8f1-4aba-a638-6972454dab81","block_type":"box","text":"substantial influence over many aspects of the private sector. In certain cases, the government owns or controls","page_number":74,"box":{"x":69,"y":634,"width":803,"height":12}},{"id":"b1fe6b8b-5feb-425e-a4aa-58ecf7a4f99c","block_type":"box","text":"many companies, including the largest in the country. Accordingly, government actions in the future could have a","page_number":74,"box":{"x":69,"y":649,"width":801,"height":12}},{"id":"43776f4c-ae39-4fda-855a-1094789bc5da","block_type":"box","text":"significant effect on economic conditions in developing market Asia-Pacific countries, which could affect private","page_number":74,"box":{"x":69,"y":664,"width":793,"height":12}},{"id":"7a66ec65-03d5-445b-9301-724cef584d2f","block_type":"box","text":"sector companies and a Fund itself, as well as the value of securities in the Fund’s portfolio. In addition, economic","page_number":74,"box":{"x":69,"y":680,"width":820,"height":11}},{"id":"e95fdcf9-8a12-44f6-87ad-16753cf356f3","block_type":"box","text":"statistics of developing market Asia-Pacific countries may be less reliable than economic statistics of more developed","page_number":74,"box":{"x":69,"y":695,"width":839,"height":11}},{"id":"acfc6258-2c41-469e-80b5-439e2f23110c","block_type":"box","text":"nations.","page_number":74,"box":{"x":69,"y":710,"width":56,"height":9}},{"id":"c244817e-7918-4aee-928c-857fa92c5335","block_type":"box","text":"In addition to the relative lack of publicly available information about developing market Asia-Pacific issuers and","page_number":74,"box":{"x":102,"y":732,"width":794,"height":12}},{"id":"30efecfd-3ad8-41d7-9f1e-fd8a194ee394","block_type":"box","text":"the possibility that such issuers may not be subject to the same accounting, auditing and financial reporting","page_number":74,"box":{"x":68,"y":748,"width":773,"height":11}},{"id":"3fcc5fb4-4225-4008-8622-bd9c63f9b14a","block_type":"box","text":"standards as U.S. companies, inflation accounting rules in some developing market Asia-Pacific countries require","page_number":74,"box":{"x":69,"y":763,"width":808,"height":11}},{"id":"342192e4-ceea-4168-9509-840fdd28a475","block_type":"box","text":"companies that keep accounting records in the local currency, for both tax and accounting purposes, to restate","page_number":74,"box":{"x":69,"y":778,"width":791,"height":11}},{"id":"d9ef5801-7d32-4af3-a180-fbcc8040253e","block_type":"box","text":"certain assets and liabilities on the company’s balance sheet in order to express items in terms of currency of","page_number":74,"box":{"x":69,"y":793,"width":790,"height":11}},{"id":"d36f9c78-d2d4-4112-8178-c0baf346f261","block_type":"box","text":"constant purchasing power. Inflation accounting may indirectly generate losses or profits for certain developing","page_number":74,"box":{"x":69,"y":808,"width":790,"height":11}},{"id":"6e7a047b-3701-4791-b5fe-9c263b1f9e05","block_type":"box","text":"market Asia-Pacific companies.","page_number":74,"box":{"x":69,"y":823,"width":220,"height":11}},{"id":"b0f9fd34-417d-4b93-820e-cd04041084c3","block_type":"box","text":"Satisfactory custodial services for investment securities may not be available in some developing Asia-Pacific","page_number":74,"box":{"x":102,"y":846,"width":780,"height":11}},{"id":"c82cc276-91f8-43f4-a811-3bb145f5b367","block_type":"box","text":"countries, which may result in the Fund incurring additional costs and delays in providing transportation and custody","page_number":74,"box":{"x":69,"y":861,"width":829,"height":11}},{"id":"f771cb4e-e05e-4168-a658-2dddf50817e2","block_type":"box","text":"services for such securities outside such countries.","page_number":74,"box":{"x":69,"y":876,"width":367,"height":9}},{"id":"f007c17b-2184-4b82-bab6-f65c6576254e","block_type":"box","text":"II-36","page_number":74,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a5a08803-700d-46aa-afe5-19579733ec2a","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":74,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"fa0c1faa-d83d-47ab-96d8-386a1ffab475","block_type":"box","text":"Certain developing Asia-Pacific countries, such as the Philippines, India and Turkey, are especially large debtors","page_number":75,"box":{"x":102,"y":45,"width":795,"height":11}},{"id":"63f0e8bc-1237-40cc-8d63-c05b94b6b682","block_type":"box","text":"to commercial banks and foreign governments.","page_number":75,"box":{"x":68,"y":60,"width":335,"height":11}},{"id":"49764f93-28c4-4d08-ab55-54fb3e9987b6","block_type":"box","text":"Natural disasters in Asia-Pacific countries, and the resulting damage, could have a severe and negative impact","page_number":75,"box":{"x":102,"y":82,"width":788,"height":12}},{"id":"3c7e945a-15dd-436c-9d97-b9a86f93265f","block_type":"box","text":"on a Fund’s investment portfolio and, in the longer term, could impair the ability of issuers in which the Fund invests","page_number":75,"box":{"x":69,"y":98,"width":830,"height":11}},{"id":"b9fa3de3-657a-45c4-86ec-41f9b3e42737","block_type":"box","text":"to conduct their businesses in the manner normally conducted.","page_number":75,"box":{"x":68,"y":113,"width":450,"height":11}},{"id":"e62396a9-9f4c-493f-90ec-0f160cf87c75","block_type":"box","text":"Fund management may determine that, notwithstanding otherwise favorable investment criteria, it may not be","page_number":75,"box":{"x":102,"y":135,"width":782,"height":12}},{"id":"3cabe4c3-0320-466c-b5ea-8947ef88bdfe","block_type":"box","text":"practicable or appropriate to invest in a particular developing Asia-Pacific country. A Fund may invest in countries in","page_number":75,"box":{"x":70,"y":150,"width":819,"height":12}},{"id":"cf54a2e9-775b-478f-8256-dec4a90797dc","block_type":"box","text":"which foreign investors, including management of the Fund, have had no or limited prior experience.","page_number":75,"box":{"x":68,"y":166,"width":711,"height":11}},{"id":"354d3878-2ebe-440b-ad90-06620362a50d","block_type":"box","text":"Restrictions on Foreign Investments in Asia-Pacific Countries.","page_number":75,"box":{"x":102,"y":188,"width":435,"height":12}},{"id":"bbe14809-ec60-4f45-b5d1-f26bd913487b","block_type":"box","text":"Some developing Asia-Pacific countries prohibit or","page_number":75,"box":{"x":543,"y":188,"width":355,"height":12}},{"id":"a826897c-0afb-48d1-ac3b-2256524c4bc1","block_type":"box","text":"impose substantial restrictions on investments in their capital markets, particularly their equity markets, by foreign","page_number":75,"box":{"x":70,"y":203,"width":817,"height":12}},{"id":"38c0a5ac-90f8-4746-88d7-06a81c0ca6b1","block_type":"box","text":"entities such as a Fund. As illustrations, certain countries may require governmental approval prior to investments by","page_number":75,"box":{"x":69,"y":219,"width":836,"height":11}},{"id":"e8502a38-5c02-4916-93ae-64fa90f1c393","block_type":"box","text":"foreign persons or limit the amount of investment by foreign persons in a particular company or limit the investment","page_number":75,"box":{"x":68,"y":234,"width":828,"height":11}},{"id":"bfb51a3d-e312-4fa3-90bf-58cf354479d1","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":75,"box":{"x":69,"y":249,"width":794,"height":11}},{"id":"1cd356a9-f0ba-4840-b84a-ff25af962f41","block_type":"box","text":"(including price and shareholder rights) than securities of the company available for purchase by nationals. There can","page_number":75,"box":{"x":69,"y":264,"width":835,"height":11}},{"id":"c9b64964-e954-4c80-8198-ff7e491c77e4","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":75,"box":{"x":69,"y":279,"width":820,"height":11}},{"id":"db9b0576-d6ea-40c6-87ba-2b6e7e29509d","block_type":"box","text":"changes to restrictions on foreign ownership of securities subsequent to a Fund’s purchase of such securities may","page_number":75,"box":{"x":69,"y":294,"width":820,"height":11}},{"id":"49ed989f-b4fe-4bd1-9c10-bc5cad817bba","block_type":"box","text":"have an adverse effect on the value of such shares. Certain countries may restrict investment opportunities in","page_number":75,"box":{"x":69,"y":309,"width":788,"height":11}},{"id":"8008afff-092d-4162-ad80-f49608370055","block_type":"box","text":"issuers or industries deemed important to national interests.","page_number":75,"box":{"x":70,"y":325,"width":434,"height":10}},{"id":"053fe3dc-274e-4d7f-aa4f-bc58f3d32955","block_type":"box","text":"The manner in which foreign investors may invest in companies in certain developing Asia-Pacific countries, as","page_number":75,"box":{"x":101,"y":347,"width":787,"height":11}},{"id":"d7845a0d-5b06-4aa6-a01d-d71214b73ea5","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":75,"box":{"x":68,"y":362,"width":833,"height":11}},{"id":"fecbb4de-c1f4-41b8-9e03-78345830c0af","block_type":"box","text":"a Fund may be required in certain of such countries to invest initially through a local broker or other entity and then","page_number":75,"box":{"x":69,"y":377,"width":820,"height":12}},{"id":"95d6de43-d697-4b28-9449-aead174cd97c","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":75,"box":{"x":69,"y":392,"width":831,"height":12}},{"id":"fc37f4c1-d3ec-4972-9d72-e1bd0178d571","block_type":"box","text":"to occur on a timely basis, resulting in a delay during which a Fund may be denied certain of its rights as an investor,","page_number":75,"box":{"x":68,"y":407,"width":834,"height":12}},{"id":"99507b34-e93b-49d8-b901-ea4d8102d85e","block_type":"box","text":"including rights as to dividends or to be made aware of certain corporate actions. There also may be instances where","page_number":75,"box":{"x":70,"y":423,"width":836,"height":11}},{"id":"10309a44-7fa0-469e-b528-066f97e75001","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":75,"box":{"x":69,"y":438,"width":800,"height":11}},{"id":"65bbacbe-f4fc-4dc5-9c18-0260117b0bbd","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":75,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"3795ddf3-30fd-4f2e-b90e-2e39142309cd","block_type":"box","text":"investment at that time.","page_number":75,"box":{"x":70,"y":468,"width":168,"height":9}},{"id":"b323879d-4b14-486a-b5e8-d0b2a96030ec","block_type":"box","text":"Substantial limitations may exist in certain countries with respect to a Fund’s ability to repatriate investment","page_number":75,"box":{"x":102,"y":491,"width":774,"height":11}},{"id":"46771950-2ac8-435a-aa54-510e67f42869","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":75,"box":{"x":70,"y":506,"width":803,"height":11}},{"id":"6e353cc2-991d-41a2-9c4d-31fe522b53ba","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":75,"box":{"x":69,"y":521,"width":789,"height":11}},{"id":"d0e58df2-9688-42ad-a0e3-fb8906abb737","block_type":"box","text":"application to the Fund of any restrictions on investments. It is possible that certain countries may impose currency","page_number":75,"box":{"x":69,"y":536,"width":826,"height":11}},{"id":"02dc5ef6-777b-4834-a7d4-be32fe11d85d","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":75,"box":{"x":69,"y":551,"width":818,"height":11}},{"id":"47658fd8-02ab-4a33-bc8a-1ea6876350c8","block_type":"box","text":"that such restrictions have the effect of making certain investments illiquid, securities may not be available for sale","page_number":75,"box":{"x":68,"y":566,"width":826,"height":11}},{"id":"3feb95f1-a1d7-4371-b8d7-3734a5316c41","block_type":"box","text":"to meet redemptions. Depending on a variety of financial factors, the percentage of a Fund’s portfolio subject to","page_number":75,"box":{"x":68,"y":581,"width":800,"height":12}},{"id":"62b14829-ef7d-4bfb-be37-dc2022760467","block_type":"box","text":"currency controls may increase. In the event other countries impose similar controls, the portion of the Fund’s assets","page_number":75,"box":{"x":69,"y":596,"width":839,"height":12}},{"id":"0c91e727-4d4b-4589-80c4-c6ef7dd4ce59","block_type":"box","text":"that may be used to meet redemptions may be further decreased. Even where there is no outright restriction on","page_number":75,"box":{"x":68,"y":612,"width":798,"height":11}},{"id":"8bed44ae-ca53-47da-87c7-44cb1b539db4","block_type":"box","text":"repatriation of capital, the mechanics of repatriation may affect certain aspects of the operations of a Fund (for","page_number":75,"box":{"x":69,"y":627,"width":795,"height":11}},{"id":"bcbd4b1d-f8c2-450e-a1ea-604056ee9f0e","block_type":"box","text":"example, if funds may be withdrawn only in certain currencies and/or only at an exchange rate established by the","page_number":75,"box":{"x":69,"y":642,"width":808,"height":11}},{"id":"69cb5b7f-2f2e-48e9-9e55-b38d4e4911bd","block_type":"box","text":"government).","page_number":75,"box":{"x":68,"y":657,"width":92,"height":11}},{"id":"ddaf07b7-b2c7-4a49-9b47-edc48cce3f3b","block_type":"box","text":"In certain countries, banks or other financial institutions may be among the leading companies or have actively","page_number":75,"box":{"x":102,"y":680,"width":790,"height":11}},{"id":"ac52a85a-2274-4477-952f-88586e0acf0a","block_type":"box","text":"traded securities available for investment. The Investment Company Act restricts a Fund’s investments in any equity","page_number":75,"box":{"x":68,"y":695,"width":828,"height":11}},{"id":"2705190f-1fc1-4c48-b26e-71c2db627adc","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":75,"box":{"x":69,"y":710,"width":808,"height":11}},{"id":"d657aff1-e08b-4e82-b787-c91c5af95fc7","block_type":"box","text":"related activities,” as defined by the rules thereunder. These provisions may restrict a Fund’s investments in certain","page_number":75,"box":{"x":69,"y":725,"width":829,"height":11}},{"id":"bb86b8af-550e-4482-9918-eecb435a9368","block_type":"box","text":"foreign banks and other financial institutions.","page_number":75,"box":{"x":68,"y":740,"width":322,"height":11}},{"id":"d25d4157-e9e0-4246-a6c4-dbcdef4e67f5","block_type":"box","text":"Political and economic structures in emerging market countries may be undergoing significant evolution and","page_number":75,"box":{"x":102,"y":763,"width":767,"height":11}},{"id":"faf7904e-740a-452b-8ce1-abdc5659a376","block_type":"box","text":"rapid development, and these countries may lack the social, political and economic stability characteristic of more","page_number":75,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"707f3179-c20b-4c1f-9376-fffe0d9b7fb5","block_type":"box","text":"developed countries. Some of these countries may have in the past failed to recognize private property rights and","page_number":75,"box":{"x":69,"y":793,"width":809,"height":11}},{"id":"c9814d3a-b0c4-4477-a764-301b7e12129d","block_type":"box","text":"have at times nationalized or expropriated the assets of private companies. As a result the risks described above,","page_number":75,"box":{"x":69,"y":808,"width":812,"height":11}},{"id":"d63fddda-6cc0-40a7-be87-ba7cf745ecb3","block_type":"box","text":"including the risks of nationalization or expropriation of assets, may be heightened. In addition, unanticipated political","page_number":75,"box":{"x":70,"y":823,"width":838,"height":12}},{"id":"b9cee4b6-d9d5-4759-8d02-ec121e2b9c04","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":75,"box":{"x":69,"y":838,"width":788,"height":11}},{"id":"06aa6f1d-1b14-42a4-9bf1-88cb0ab200ee","block_type":"box","text":"additional investments in emerging market countries. The small size and inexperience of the securities markets in","page_number":75,"box":{"x":69,"y":853,"width":812,"height":12}},{"id":"44ce1743-812a-48d6-ab65-423fdd14e135","block_type":"box","text":"certain of these countries and the limited volume of trading in securities in these countries may make investments in","page_number":75,"box":{"x":69,"y":869,"width":835,"height":11}},{"id":"277ad735-4a6c-4121-a0e3-1eee0b8db74f","block_type":"box","text":"the countries illiquid and more volatile than investments in Japan or most Western European countries. There may be","page_number":75,"box":{"x":68,"y":884,"width":837,"height":11}},{"id":"b5d158ef-41a5-4ade-8cc2-47b974e609e4","block_type":"box","text":"II-37","page_number":75,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"11786dc0-43b2-41be-aa8b-9b994737e351","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":75,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0cbfc9fc-9487-4c84-a631-ecac63ac4d23","block_type":"box","text":"little financial or accounting information available with respect to issuers located in certain emerging market","page_number":76,"box":{"x":70,"y":45,"width":771,"height":11}},{"id":"96b8c68a-6e92-400d-811e-7f720bc675d6","block_type":"box","text":"countries, and it may be difficult to assess the value or prospects of an investment in such issuers.","page_number":76,"box":{"x":69,"y":60,"width":711,"height":11}},{"id":"4ce3133a-f132-4313-9c24-61cbb7024820","block_type":"box","text":"The expense ratios of the Funds investing significantly in foreign securities can be expected to be higher than","page_number":76,"box":{"x":101,"y":82,"width":779,"height":12}},{"id":"40103914-511d-44d9-b4c7-338f4186836d","block_type":"box","text":"those of Funds investing primarily in domestic securities. The costs attributable to investing abroad are usually higher","page_number":76,"box":{"x":68,"y":98,"width":840,"height":11}},{"id":"f0359b78-d490-44f9-871e-06d9df0aed06","block_type":"box","text":"for several reasons, such as the higher cost of custody of foreign securities, higher commissions paid on comparable","page_number":76,"box":{"x":68,"y":113,"width":838,"height":11}},{"id":"5f05f022-8449-459c-8063-7d7d27136207","block_type":"box","text":"transactions on foreign markets and additional costs arising from delays in settlements of transactions involving","page_number":76,"box":{"x":68,"y":128,"width":802,"height":11}},{"id":"2e8bafe9-b0c8-4083-951b-5eb091d4678d","block_type":"box","text":"foreign securities.","page_number":76,"box":{"x":68,"y":143,"width":127,"height":11}},{"id":"930f8f98-22d3-4b5f-968c-dd7ccbd4d0f2","block_type":"box","text":"Risks of Investments in Russia.","page_number":76,"box":{"x":102,"y":166,"width":224,"height":9}},{"id":"a6b82d93-3552-497c-a0c4-347a91dcaa3b","block_type":"box","text":"A Fund may invest a portion of its assets in securities issued by companies","page_number":76,"box":{"x":332,"y":166,"width":539,"height":11}},{"id":"e4d80dc8-0d24-4ec0-b8f6-b7d4da5f28e1","block_type":"box","text":"located in Russia. The Russian securities market suffers from a variety of problems described above in “Investment","page_number":76,"box":{"x":70,"y":181,"width":826,"height":11}},{"id":"efe8d313-31cd-43a7-bc2d-c9d7daa890c6","block_type":"box","text":"in Emerging Markets” not encountered in more developed markets. The Russian securities market is relatively new,","page_number":76,"box":{"x":70,"y":196,"width":821,"height":11}},{"id":"b7deb284-70b5-42f4-b714-b4f70a8c2299","block_type":"box","text":"and a substantial portion of securities transactions in Russia are privately negotiated outside of stock exchanges.","page_number":76,"box":{"x":69,"y":211,"width":812,"height":11}},{"id":"53b4b887-85f6-4028-b43f-41a7430e6b90","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":76,"box":{"x":68,"y":226,"width":824,"height":11}},{"id":"268e2fd5-fbde-4bd3-a7f9-0fc95d7e5864","block_type":"box","text":"make obtaining accurate prices on portfolio securities from independent sources more difficult than in more","page_number":76,"box":{"x":69,"y":241,"width":771,"height":11}},{"id":"2aac6a82-49f4-4a52-afcc-e50047a9f2d1","block_type":"box","text":"developed markets.","page_number":76,"box":{"x":69,"y":257,"width":138,"height":10}},{"id":"3235b787-93f0-4d09-8417-9dfdf6e87b22","block_type":"box","text":"Because of the underdeveloped state of Russia’s securities markets and banking and telecommunication","page_number":76,"box":{"x":102,"y":279,"width":751,"height":11}},{"id":"f3f7a5c2-03b4-4206-8c43-871855ab41ba","block_type":"box","text":"systems, settlement, clearing and registration of securities transactions are subject to additional risks. Prior to 2013,","page_number":76,"box":{"x":69,"y":294,"width":839,"height":11}},{"id":"0dd0de4c-7e0f-4372-acf6-4319e55ecdf5","block_type":"box","text":"there was no central registration system for equity share registration in Russia and registration was carried out either","page_number":76,"box":{"x":68,"y":309,"width":838,"height":11}},{"id":"9ff3ab9b-29cd-400e-b1a0-3b2ab0d071f9","block_type":"box","text":"by the issuers themselves or by registrars located throughout Russia. These registrars may not have been subject to","page_number":76,"box":{"x":69,"y":325,"width":831,"height":11}},{"id":"351d30d9-1e10-4514-8d90-674f3020d0dd","block_type":"box","text":"effective state supervision or licensed with any governmental entity. In 2013, Russia established the National","page_number":76,"box":{"x":69,"y":339,"width":783,"height":12}},{"id":"015676b4-6e42-4e0a-a3d5-d644c31e20df","block_type":"box","text":"Settlement Depository (“NSD”) as a recognized central securities depository, and title to Russian equities held","page_number":76,"box":{"x":69,"y":355,"width":790,"height":11}},{"id":"15bfb2f1-e91f-450b-b05c-aedffad4f8e3","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":76,"box":{"x":68,"y":370,"width":833,"height":11}},{"id":"d3365571-98c6-48ae-af3f-ae5ee49fded6","block_type":"box","text":"implementation of the NSD has enhanced the efficiency and transparency of the Russian securities market, loss still","page_number":76,"box":{"x":70,"y":385,"width":831,"height":11}},{"id":"dd959a15-0dff-4740-bebc-800bcc1e9273","block_type":"box","text":"can occur. Additionally, issuers and registrars remain prominent in the validation and approval of documentation","page_number":76,"box":{"x":69,"y":400,"width":797,"height":11}},{"id":"83414cd5-778c-4fad-8de2-49708aac56ab","block_type":"box","text":"requirements for corporate action processing in Russia, and, because the documentation requirements and approval","page_number":76,"box":{"x":69,"y":415,"width":832,"height":11}},{"id":"b9ea4066-4e12-48a6-936a-b726b5e4281c","block_type":"box","text":"criteria vary between registrars and issuers, there remain inconsistent market standards in the Russian market with","page_number":76,"box":{"x":69,"y":430,"width":827,"height":11}},{"id":"f1b3195f-a723-44e4-bacd-6965fa1cf057","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":76,"box":{"x":69,"y":445,"width":800,"height":11}},{"id":"9213aa33-f8fe-4bda-927a-fdc7de550cd8","block_type":"box","text":"relating to title or corporate actions relating to its portfolio securities, it may be difficult for the Fund to enforce its","page_number":76,"box":{"x":69,"y":460,"width":813,"height":12}},{"id":"1585e3da-53fd-41e5-a1cf-dfa9f559733f","block_type":"box","text":"rights or otherwise remedy the loss. Russian securities laws may not recognize foreign nominee accounts held with a","page_number":76,"box":{"x":69,"y":475,"width":836,"height":12}},{"id":"fc4dce83-51bb-4530-a128-a175c55c1305","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":76,"box":{"x":69,"y":491,"width":824,"height":11}},{"id":"0b150118-8a3d-4b18-be66-72ce1cda9ebc","block_type":"box","text":"their clients. A Fund also may experience difficulty in obtaining and/or enforcing judgments in Russia.","page_number":76,"box":{"x":68,"y":506,"width":723,"height":11}},{"id":"d48f7a10-fe08-4c8e-8eca-39a855c61d52","block_type":"box","text":"In addition, Russia continues to assert its influence in the region through economic and military measures, as it","page_number":76,"box":{"x":102,"y":528,"width":801,"height":12}},{"id":"a897b8ef-8261-4754-af05-84ddf0130535","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":76,"box":{"x":69,"y":543,"width":826,"height":12}},{"id":"869a23d9-065f-439e-ab2f-1389296c674c","block_type":"box","text":"of Ukraine on February 24, 2022. The extent and duration of the military action, resulting sanctions and resulting","page_number":76,"box":{"x":69,"y":559,"width":809,"height":11}},{"id":"9ab88f48-5286-4236-8672-fa24948d7a60","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":76,"box":{"x":68,"y":574,"width":821,"height":11}},{"id":"b9d7f965-ad6e-429f-90dd-71f593a797a5","block_type":"box","text":"are impossible to predict. Any such disruptions caused by Russian military action or other actions (including","page_number":76,"box":{"x":69,"y":589,"width":770,"height":11}},{"id":"73a5b7bd-ffbb-414b-b45c-d1015005108b","block_type":"box","text":"cyberattacks and espionage) or resulting actual and threatened responses to such activity, including purchasing and","page_number":76,"box":{"x":69,"y":604,"width":827,"height":11}},{"id":"fecb13ff-c903-46ae-a392-8deedbf3245f","block_type":"box","text":"financing restrictions, boycotts or changes in consumer or purchaser preferences, sanctions, tariffs or cyberattacks","page_number":76,"box":{"x":68,"y":619,"width":824,"height":11}},{"id":"45babd3a-d809-40c6-9f34-5066bc46eb6f","block_type":"box","text":"on the Russian government, Russian companies or Russian individuals, including politicians, may impact Russia’s","page_number":76,"box":{"x":69,"y":634,"width":814,"height":12}},{"id":"2d242126-18bd-4016-8a6d-a205174e1496","block_type":"box","text":"economy and Russian issuers of securities in which the Fund invests. Actual and threatened responses to such","page_number":76,"box":{"x":69,"y":649,"width":795,"height":12}},{"id":"721cdccb-5a0b-4f83-a0ff-e0cb27524206","block_type":"box","text":"activity, including purchasing restrictions, sanctions, tariffs or cyberattacks on the Russian government or Russian","page_number":76,"box":{"x":69,"y":664,"width":814,"height":12}},{"id":"4f5a7d2e-417c-4ad1-9ffd-2432cd354407","block_type":"box","text":"companies, may impact Russia’s economy and Russian issuers of securities in which the Fund invests. Actual and","page_number":76,"box":{"x":69,"y":680,"width":816,"height":11}},{"id":"e098612f-6a4d-45d9-b8cb-529feeba8146","block_type":"box","text":"threatened responses to such military action may also impact the markets for certain Russian commodities, such as","page_number":76,"box":{"x":68,"y":695,"width":836,"height":11}},{"id":"bc5a030b-f598-42db-99e0-adfa4da88186","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":76,"box":{"x":69,"y":710,"width":829,"height":11}},{"id":"12262501-3dfd-42eb-918d-e16885f0ba0c","block_type":"box","text":"sectors globally.","page_number":76,"box":{"x":69,"y":725,"width":112,"height":11}},{"id":"4f3b9d00-02c7-4e9e-98fe-463f4887b016","block_type":"box","text":"Governments in the United States and many other countries (collectively, the “Sanctioning Bodies”) have","page_number":76,"box":{"x":102,"y":748,"width":745,"height":11}},{"id":"7364bfd4-7d82-4eda-a945-5957a8291c7d","block_type":"box","text":"imposed economic sanctions, which can consist of prohibiting certain securities trades, certain private transactions","page_number":76,"box":{"x":70,"y":763,"width":826,"height":11}},{"id":"3c3a1d12-8142-4d00-9459-ab545ab90295","block_type":"box","text":"in the energy sector, asset freezes and prohibition of all business, against certain Russian individuals, including","page_number":76,"box":{"x":70,"y":778,"width":799,"height":11}},{"id":"78011eae-7bca-4a86-b391-243a67a267b0","block_type":"box","text":"politicians, and Russian corporate and banking entities. The Sanctioning Bodies, or others, could also institute","page_number":76,"box":{"x":70,"y":793,"width":788,"height":11}},{"id":"d896a7e3-0d89-42f8-b3c4-4bf0b74851e9","block_type":"box","text":"broader sanctions on Russia, including banning Russia from global payments systems that facilitate cross-border","page_number":76,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"765241f6-7cd8-42a0-ad22-1c1ded9500e0","block_type":"box","text":"payments. These sanctions, or even the threat of further sanctions, may result in the decline of the value and","page_number":76,"box":{"x":70,"y":823,"width":782,"height":11}},{"id":"1e812725-66f9-4df1-91d3-62ba215c145e","block_type":"box","text":"liquidity of Russian securities, a weakening of the ruble or other adverse consequences to the Russian economy.","page_number":76,"box":{"x":70,"y":838,"width":802,"height":12}},{"id":"02cbdfbf-8d4c-4e6c-9054-71910ac6df99","block_type":"box","text":"These sanctions have resulted and may continue to result in the immediate freeze of Russian securities and/or","page_number":76,"box":{"x":68,"y":853,"width":797,"height":12}},{"id":"94d46062-8ab1-47f4-8db0-966233fcc6cd","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":76,"box":{"x":68,"y":869,"width":804,"height":11}},{"id":"8eb53cea-3707-4288-b602-5707aa438ff6","block_type":"box","text":"and/or assets. Sanctions could also result in Russia taking counter measures or retaliatory actions which may","page_number":76,"box":{"x":69,"y":884,"width":791,"height":11}},{"id":"3c8edfda-0359-43a6-b056-1db05848ac7a","block_type":"box","text":"further impair the value and liquidity of Russian securities.","page_number":76,"box":{"x":68,"y":899,"width":417,"height":11}},{"id":"ebab48b2-01ff-47bc-87f8-2c0c3df83e13","block_type":"box","text":"II-38","page_number":76,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"74e81b65-f6ce-49dd-8bf5-f1d80afa107b","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":76,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3e44be92-838f-43cf-a9f6-0b6a5a411d17","block_type":"box","text":"Risks of Investing in Saudi Arabia.","page_number":77,"box":{"x":102,"y":45,"width":241,"height":11}},{"id":"15820deb-c2d2-4aec-b9b4-065eddd148bd","block_type":"box","text":"The ability of foreign investors (such as a Fund) to invest in Saudi Arabian","page_number":77,"box":{"x":350,"y":45,"width":523,"height":11}},{"id":"d3023ea2-7366-4c7c-b6c0-bf49cdd22191","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":77,"box":{"x":70,"y":60,"width":838,"height":11}},{"id":"a70ddf09-2ea8-4f40-8fa2-0f012f70a747","block_type":"box","text":"and unforeseen risks could materialize due to foreign ownership in such securities. In addition, the Capital Market","page_number":77,"box":{"x":69,"y":75,"width":814,"height":11}},{"id":"3411836c-c9a3-47ad-9108-306f21d8b320","block_type":"box","text":"Authority (“CMA”) places investment limitations on the ownership of Saudi Arabian issuers by foreign investors,","page_number":77,"box":{"x":68,"y":90,"width":793,"height":11}},{"id":"d8d7741c-84e1-4e15-898e-53e2e2d202e7","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":77,"box":{"x":70,"y":105,"width":819,"height":11}},{"id":"8080bfaf-7437-44b7-bd8d-e9ca12d2c723","block_type":"box","text":"may prevent a Fund from investing in accordance with its strategy and contribute to tracking error against the","page_number":77,"box":{"x":69,"y":120,"width":777,"height":12}},{"id":"a2abedd2-953a-4409-9baf-c5ca1b405aff","block_type":"box","text":"Underlying Index. These restrictions may be changed or new restrictions, such as licensing requirements, special","page_number":77,"box":{"x":70,"y":136,"width":803,"height":11}},{"id":"a77eccb2-f044-4102-851d-b90844bcb9e6","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":77,"box":{"x":69,"y":150,"width":837,"height":12}},{"id":"7ce23a9e-ddf4-4892-b0b5-6b75caac88bb","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":77,"box":{"x":69,"y":166,"width":765,"height":11}},{"id":"c0044edd-ff7a-4cc4-a091-926f739e3dc4","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":77,"box":{"x":69,"y":181,"width":838,"height":11}},{"id":"b6d9c315-0b82-4da4-b3c2-dc8ed3577261","block_type":"box","text":"may be exacerbated, compared to more developed markets, given the limited history of foreign investment in the","page_number":77,"box":{"x":69,"y":196,"width":805,"height":11}},{"id":"9f2cc659-77cb-4e50-b75e-a2cb64872233","block_type":"box","text":"Saudi Arabian market. Investments in Saudi Arabia may also be subject to loss due to expropriation or nationalization","page_number":77,"box":{"x":69,"y":211,"width":837,"height":11}},{"id":"6bbb0928-2d1a-4b67-a281-2d7d20efcd44","block_type":"box","text":"of assets and property or the imposition of restrictions on additional foreign investments and repatriation of capital.","page_number":77,"box":{"x":69,"y":226,"width":826,"height":11}},{"id":"187fd207-f211-4e86-a80a-8848a76a842b","block_type":"box","text":"Such heightened risks may include, among others, restrictions on and government intervention in international trade,","page_number":77,"box":{"x":69,"y":241,"width":834,"height":11}},{"id":"44f361d3-053b-4679-b0c2-bf275652c7a2","block_type":"box","text":"confiscatory taxation, political instability, including authoritarian and/or military involvement in governmental decision","page_number":77,"box":{"x":69,"y":256,"width":835,"height":12}},{"id":"98076967-0437-4dd5-82f1-8bc4419f0d02","block_type":"box","text":"making, armed conflict, crime and instability as a result of religious, ethnic and/or socioeconomic unrest. Saudi","page_number":77,"box":{"x":69,"y":271,"width":797,"height":12}},{"id":"4690c3c6-6aa9-4edd-a958-b275511c2548","block_type":"box","text":"Arabia has privatized, or has begun the process of privatizing, certain entities and industries. Newly privatized","page_number":77,"box":{"x":68,"y":286,"width":781,"height":12}},{"id":"55f0cfa2-b73f-4260-b2b2-b089b6bd5160","block_type":"box","text":"companies may face strong competition from government-sponsored competitors that have not been privatized. In","page_number":77,"box":{"x":69,"y":302,"width":811,"height":11}},{"id":"c9f75efa-7664-4ecc-abc1-0832117c0740","block_type":"box","text":"some instances, investors in newly privatized entities have suffered losses due to the inability of the newly privatized","page_number":77,"box":{"x":69,"y":317,"width":833,"height":11}},{"id":"3b954a5b-8689-41a9-b695-289491ae252c","block_type":"box","text":"entities to adjust quickly to a competitive environment or changing regulatory and legal standards or, in some cases,","page_number":77,"box":{"x":69,"y":332,"width":831,"height":11}},{"id":"c419eb2a-86ce-416f-b755-374e36f13bcf","block_type":"box","text":"due to re-nationalization of such privatized entities. There is no assurance that similar losses will not recur. Further,","page_number":77,"box":{"x":69,"y":347,"width":823,"height":11}},{"id":"0d617989-13d6-4a4d-8c9a-e930771cf418","block_type":"box","text":"under income tax laws imposed by the Department of Zakat and Income Tax, dividends paid by a Saudi Arabian","page_number":77,"box":{"x":69,"y":362,"width":791,"height":11}},{"id":"31206f4f-5324-445c-a0e5-1a41c1034ae2","block_type":"box","text":"company to foreign stockholders are generally subject to a 5% withholding tax (different tax rates may apply pursuant","page_number":77,"box":{"x":69,"y":377,"width":835,"height":12}},{"id":"7ac07b79-0a1c-4092-9356-6ddbda1ecb60","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":77,"box":{"x":68,"y":392,"width":799,"height":12}},{"id":"14e35fa4-f6ba-4220-a2bf-48234f95b30a","block_type":"box","text":"countries involved in the sale of petroleum, and its economy is therefore vulnerable to changes in foreign currency","page_number":77,"box":{"x":69,"y":407,"width":815,"height":12}},{"id":"d898bb55-2208-4f27-bad4-07b7af8b0338","block_type":"box","text":"values and the market for petroleum. As global demand for petroleum fluctuates, Saudi Arabia may be significantly","page_number":77,"box":{"x":68,"y":423,"width":818,"height":11}},{"id":"f17e4557-007d-4a4e-a6b4-ee1454a0fc6a","block_type":"box","text":"impacted.","page_number":77,"box":{"x":70,"y":438,"width":67,"height":11}},{"id":"1dae42e5-eccc-42da-9ef0-b88fe96e819a","block_type":"box","text":"Like most Middle Eastern governments, the government of Saudi Arabia exercises substantial influence over","page_number":77,"box":{"x":102,"y":460,"width":773,"height":12}},{"id":"08a2ab15-556f-4bfd-a74a-2dd1fdfc7bde","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":77,"box":{"x":69,"y":475,"width":812,"height":12}},{"id":"938508de-8edd-4c83-ac42-a04929e7672c","block_type":"box","text":"lagged significantly: restrictions on foreign ownership persist, and the government has an ownership stake in many","page_number":77,"box":{"x":70,"y":491,"width":818,"height":11}},{"id":"405fda4c-a127-4289-97d0-b83a7c1a237c","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":77,"box":{"x":69,"y":506,"width":836,"height":11}},{"id":"c1791a73-b5db-48f2-9978-39a496e775e5","block_type":"box","text":"Arabia has historically experienced strained relations with economic partners worldwide, including other countries in","page_number":77,"box":{"x":68,"y":521,"width":826,"height":11}},{"id":"3eb530d6-b05a-47da-959e-208c6a8e16b1","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":77,"box":{"x":68,"y":536,"width":809,"height":11}},{"id":"ae410563-e1f5-453f-b875-249af3023fb0","block_type":"box","text":"including terrorism, may cause uncertainty in their markets and may adversely affect its economy and a Fund’s","page_number":77,"box":{"x":70,"y":551,"width":790,"height":11}},{"id":"d7bff516-aa23-4b15-905f-e4d0cb2c8e69","block_type":"box","text":"investments. Governmental actions in the future could have a significant effect on economic conditions in Saudi","page_number":77,"box":{"x":70,"y":566,"width":798,"height":11}},{"id":"0ccf9acf-3d62-4aad-a9d6-be2a88e0373f","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":77,"box":{"x":68,"y":581,"width":781,"height":11}},{"id":"6aec5bb8-0dd4-4405-90ce-84bf6c7048d5","block_type":"box","text":"portfolio. Any economic sanctions on Saudi Arabian individuals or Saudi Arabian corporate entities, or even the threat","page_number":77,"box":{"x":70,"y":596,"width":836,"height":12}},{"id":"f54ae76b-1b22-4b1f-87e8-c855e6b1d1d7","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":77,"box":{"x":69,"y":612,"width":837,"height":11}},{"id":"3e1c09a2-cfb3-42f7-bb3d-6a8a8006317e","block_type":"box","text":"riyal or other adverse consequences to the Saudi Arabian economy. In addition, Saudi Arabia’s economy relies heavily","page_number":77,"box":{"x":69,"y":627,"width":838,"height":11}},{"id":"2ce22bcb-c651-4edc-8a3d-606833bdf01f","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":77,"box":{"x":69,"y":642,"width":790,"height":11}},{"id":"7c1f9a20-6316-4a47-bf11-a3eedc6c6d2c","block_type":"box","text":"economy.","page_number":77,"box":{"x":69,"y":659,"width":65,"height":9}},{"id":"f3cea42d-e5d7-40e5-9563-da2acf5e63cb","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":77,"box":{"x":101,"y":680,"width":747,"height":11}},{"id":"8f56fb1c-2845-46d4-acf5-8efb111a7a2b","block_type":"box","text":"securities markets in Saudi Arabia are subject to greater risks associated with market volatility, lower market","page_number":77,"box":{"x":69,"y":695,"width":776,"height":11}},{"id":"27fc908f-8c12-43ed-9127-677efe6dc076","block_type":"box","text":"capitalization, lower trading volume, illiquidity, inflation, greater price fluctuations, uncertainty regarding the existence","page_number":77,"box":{"x":69,"y":710,"width":836,"height":11}},{"id":"8a8d7d59-6e59-49d7-8522-f2ddc46a08dc","block_type":"box","text":"of trading markets, governmental control and heavy regulation of labor and industry. Shares of certain Saudi Arabian","page_number":77,"box":{"x":69,"y":725,"width":830,"height":11}},{"id":"2c1ba085-7080-4b1d-8e36-abef82518e39","block_type":"box","text":"companies tend to trade less frequently than those of companies on exchanges in more developed markets. Such","page_number":77,"box":{"x":69,"y":740,"width":813,"height":11}},{"id":"e7cadba6-a21f-4bc1-abb7-5c5f93a12822","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":77,"box":{"x":70,"y":755,"width":822,"height":11}},{"id":"c6f3cfd9-8eb1-49b0-b63d-ac680aa16769","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":77,"box":{"x":68,"y":770,"width":837,"height":12}},{"id":"aeaf973f-149e-49dd-bf14-73e37c3a08ff","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":77,"box":{"x":69,"y":785,"width":826,"height":12}},{"id":"9677aa6c-0251-4135-b32e-af7dfc65a5cf","block_type":"box","text":"typically the case for investment managers.","page_number":77,"box":{"x":68,"y":801,"width":309,"height":11}},{"id":"e8336e9f-a3cd-4da5-9572-35b92408a2ea","block_type":"box","text":"Although the political situation in Saudi Arabia is largely stable, Saudi Arabia has historically experienced political","page_number":77,"box":{"x":101,"y":823,"width":806,"height":12}},{"id":"91a32923-392e-4ce3-9cb2-6a5d950a0dba","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":77,"box":{"x":70,"y":838,"width":828,"height":12}},{"id":"d1b068ed-a7c5-418b-a67f-94576ea623c4","block_type":"box","text":"Middle East region could adversely impact the economy of Saudi Arabia. Instability may be caused by military","page_number":77,"box":{"x":70,"y":853,"width":777,"height":12}},{"id":"75cd9dd8-aad4-42c5-a06c-e607fa292643","block_type":"box","text":"developments, government interventions in the marketplace, terrorism, extremist attitudes, attempted social or","page_number":77,"box":{"x":69,"y":869,"width":796,"height":11}},{"id":"5c7c9e2d-ed1b-491f-8d56-9bbd9012e8f7","block_type":"box","text":"political reforms, religious differences, or other factors. Additionally, anti-Western views held by certain groups in the","page_number":77,"box":{"x":70,"y":884,"width":830,"height":11}},{"id":"f7f251e8-3ade-44ed-aa7f-ee8b0514a1dd","block_type":"box","text":"Middle East may influence government policies regarding foreign investment. Further developments in U.S. relations","page_number":77,"box":{"x":70,"y":899,"width":827,"height":11}},{"id":"a6eb449b-ae62-4c59-8884-83ecc808034b","block_type":"box","text":"II-39","page_number":77,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"4055fd04-4bbf-41f4-9197-9283535513ed","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":77,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"bd37112e-a86a-41d6-bbe1-5dadb68b4832","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":78,"box":{"x":68,"y":45,"width":764,"height":11}},{"id":"de3d3b3c-324e-4350-b204-d609f12e962f","block_type":"box","text":"significant, and in some cases the most significant, trading partner of, or foreign investor in, Saudi Arabia. As a","page_number":78,"box":{"x":69,"y":60,"width":795,"height":11}},{"id":"e17d893b-67dc-4d0d-85d9-2b22fa16e067","block_type":"box","text":"result, economic conditions of Saudi Arabia may be particularly affected by changes in the U.S. economy. A decrease","page_number":78,"box":{"x":69,"y":75,"width":835,"height":11}},{"id":"4ed4f565-30de-4487-92b7-0bb6d90d1eac","block_type":"box","text":"in U.S. imports or exports, new trade and financial regulations or tariffs, changes in the U.S. dollar exchange rate or","page_number":78,"box":{"x":70,"y":90,"width":829,"height":11}},{"id":"dce35fae-0d75-470e-a572-0f97b4cb2b74","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":78,"box":{"x":69,"y":105,"width":815,"height":11}},{"id":"524a49d4-7ef2-41d3-b089-3270ae15744a","block_type":"box","text":"and, as a result, securities to which the Fund has exposure. Political instability in North Africa and the larger Middle","page_number":78,"box":{"x":69,"y":120,"width":825,"height":12}},{"id":"283b0b4f-06b3-470a-baff-2ed6dcf99001","block_type":"box","text":"East region has caused significant disruptions to many industries. Continued political and social unrest in these","page_number":78,"box":{"x":70,"y":135,"width":797,"height":12}},{"id":"959baf9e-40f5-4078-baa9-d6ad818a47ca","block_type":"box","text":"areas may negatively affect the value of securities in a Fund’s portfolio.","page_number":78,"box":{"x":69,"y":150,"width":510,"height":12}},{"id":"3e439c68-8aaf-4a83-973b-39562b068d20","block_type":"box","text":"Certain issuers located in Saudi Arabia may operate in, or have dealings with, countries subject to sanctions","page_number":78,"box":{"x":102,"y":173,"width":773,"height":11}},{"id":"24cb23cf-66b4-4e10-87ec-2a1a1baa9cc2","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":78,"box":{"x":69,"y":188,"width":820,"height":12}},{"id":"434693e8-7b84-48f8-af47-4d11825926d0","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":78,"box":{"x":69,"y":203,"width":787,"height":12}},{"id":"cb10ba9d-cffe-4ed5-9f78-630d1614f7fe","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":78,"box":{"x":70,"y":218,"width":837,"height":12}},{"id":"10eb43e2-4316-4e45-bbec-812a8823efea","block_type":"box","text":"will be indirectly subject to those risks.","page_number":78,"box":{"x":68,"y":234,"width":277,"height":11}},{"id":"de527c1b-0b62-40d5-b60c-0005d0bea9e9","block_type":"box","text":"Risks of Investing in Venezuela.","page_number":78,"box":{"x":102,"y":256,"width":223,"height":12}},{"id":"a3ee2114-c15e-4e21-847b-e55d801cc451","block_type":"box","text":"Investment in Venezuela may subject a Fund to legal, regulatory, political,","page_number":78,"box":{"x":332,"y":257,"width":521,"height":11}},{"id":"5849e859-b0ea-4338-a5cf-720b094724bb","block_type":"box","text":"currency, security, expropriation and/or nationalization of assets and economic risk specific to Venezuela. Venezuela","page_number":78,"box":{"x":69,"y":271,"width":829,"height":12}},{"id":"d2f7b226-6774-4f61-b966-f6314e02f35b","block_type":"box","text":"is extremely well endowed with natural resources, including oil and natural gas, and its economy is heavily dependent","page_number":78,"box":{"x":70,"y":287,"width":837,"height":11}},{"id":"56822be8-fd22-4b3c-91a5-acb6b048421d","block_type":"box","text":"on export of natural resources to key trading partners. Any act of terrorism, an armed conflict or a breakdown of a","page_number":78,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"68e6ce45-a614-4f79-9b26-54c84e6855b1","block_type":"box","text":"key trading relationship that disrupts the production or export of natural resources will likely negatively affect the","page_number":78,"box":{"x":69,"y":317,"width":804,"height":11}},{"id":"62b2a3a4-874e-4ce4-b60a-37c7d76b6790","block_type":"box","text":"Venezuelan economy. The government continues to control key sectors of the economy, including upstream oil and","page_number":78,"box":{"x":68,"y":332,"width":816,"height":11}},{"id":"ab4532df-afed-4149-81f6-b9f0c4125a47","block_type":"box","text":"gas production, and has sought to increase its role in key sectors, such as telecommunications and steel.","page_number":78,"box":{"x":68,"y":347,"width":758,"height":11}},{"id":"d50f4a23-241b-490a-a579-40311add3588","block_type":"box","text":"Meanwhile, ambiguities in the investment environment remain, such as continued high levels of bureaucracy and","page_number":78,"box":{"x":70,"y":362,"width":803,"height":11}},{"id":"19dfd314-b227-4a29-8f07-fe641de1f460","block_type":"box","text":"corruption, large macroeconomic imbalances, and political and policy uncertainty. Friction continues between the","page_number":78,"box":{"x":69,"y":377,"width":804,"height":12}},{"id":"996d3dd4-ed51-4b08-925b-750b9d54fdbb","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":78,"box":{"x":68,"y":392,"width":822,"height":12}},{"id":"2e0b26d9-1916-425c-ae11-6cafe8e9f284","block_type":"box","text":"and sectoral sanctions, on certain Venezuelan individuals and Venezuelan corporate entities, and on the Venezuelan","page_number":78,"box":{"x":69,"y":408,"width":827,"height":10}},{"id":"5b21d125-5deb-47e7-b23b-c5ed4b4e82ec","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":78,"box":{"x":68,"y":423,"width":814,"height":11}},{"id":"3a20e038-02fb-4838-90f9-044e9bd0b030","block_type":"box","text":"against Venezuela in an effort to effect regime change. Military action, sanctions, or even the threat of further","page_number":78,"box":{"x":69,"y":438,"width":787,"height":11}},{"id":"01d6b98f-35dd-4900-9490-00ce2eab0cad","block_type":"box","text":"military action and sanctions, may result in the decline of the value and liquidity of Venezuelan securities, a","page_number":78,"box":{"x":69,"y":453,"width":766,"height":11}},{"id":"b204fdb3-cacb-41eb-b2d2-0f51877bacbf","block_type":"box","text":"weakening of the bolivar or other adverse consequences to the Venezuelan economy. These sanctions impair the","page_number":78,"box":{"x":68,"y":468,"width":804,"height":11}},{"id":"cb6c05fb-fadb-4d29-be74-fd80d7beff72","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":78,"box":{"x":69,"y":483,"width":838,"height":11}},{"id":"5bcdbead-c395-42a7-9f40-1f70d8ce31d9","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":78,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"52aab3d7-38d7-4be7-a361-308225a31260","block_type":"box","text":"impact on a Fund’s investments.","page_number":78,"box":{"x":70,"y":514,"width":230,"height":10}},{"id":"31a4aa17-90b0-4dbf-af7e-fa6dce3cdc5e","block_type":"box","text":"Brady Bonds.","page_number":78,"box":{"x":102,"y":536,"width":92,"height":11}},{"id":"2b5861fa-d13d-4fa1-a8d0-184a784d8854","block_type":"box","text":"Certain Funds may invest in Brady Bonds. A Fund’s emerging market debt securities may include","page_number":78,"box":{"x":201,"y":536,"width":689,"height":11}},{"id":"c395a453-922a-4eac-a5cd-8d4b8faddaa3","block_type":"box","text":"emerging market governmental debt obligations commonly referred to as Brady Bonds. Brady Bonds are securities","page_number":78,"box":{"x":69,"y":551,"width":815,"height":11}},{"id":"a4b439e6-e83c-428c-ad7b-3b36c4626afa","block_type":"box","text":"created through the exchange of existing commercial bank loans to sovereign entities for new obligations in","page_number":78,"box":{"x":69,"y":566,"width":766,"height":11}},{"id":"ff00099d-3afb-4040-b313-36474ea5ae1f","block_type":"box","text":"connection with debt restructurings under a debt restructuring plan introduced by former U.S. Secretary of the","page_number":78,"box":{"x":69,"y":581,"width":784,"height":12}},{"id":"22f2a02c-bd7e-48f8-addb-22925c62c9ff","block_type":"box","text":"Treasury, Nicholas F. Brady (the “Brady Plan”). Brady Plan debt restructurings have been implemented in a number of","page_number":78,"box":{"x":68,"y":596,"width":837,"height":12}},{"id":"9bbebcc1-f350-47c4-846b-8ca7da7037b8","block_type":"box","text":"countries, including: Argentina, Bolivia, Brazil, Bulgaria, Costa Rica, the Dominican Republic, Ecuador, Jordan, Mexico,","page_number":78,"box":{"x":69,"y":612,"width":839,"height":11}},{"id":"9ccb1ea4-5cd1-4611-b074-7c94d8c00d9c","block_type":"box","text":"Niger, Nigeria, Panama, Peru, the Philippines, Poland, Uruguay, Venezuela, and Vietnam. Beginning in the early","page_number":78,"box":{"x":70,"y":627,"width":786,"height":11}},{"id":"e29b0f9d-a3a0-41e3-bf48-de2234a0f815","block_type":"box","text":"2000s, certain countries began retiring their Brady Bonds, including Brazil, Colombia, Mexico, the Philippines, and","page_number":78,"box":{"x":69,"y":642,"width":814,"height":11}},{"id":"a5e6a98c-7b04-4594-be86-6dfb73bbde20","block_type":"box","text":"Venezuela.","page_number":78,"box":{"x":68,"y":657,"width":75,"height":9}},{"id":"52dbe874-1eb7-4ea2-b579-d8655ea0edc7","block_type":"box","text":"Brady Bonds may be collateralized or uncollateralized, are issued in various currencies (primarily the U.S. dollar)","page_number":78,"box":{"x":102,"y":680,"width":798,"height":11}},{"id":"fda2d1d4-ee5c-47d8-abc0-3c9d0b73874f","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":78,"box":{"x":69,"y":695,"width":780,"height":11}},{"id":"9e780b78-c028-4d0f-9e8b-faaae8368e6e","block_type":"box","text":"Securities. U.S. dollar-denominated, collateralized Brady Bonds, which may be fixed rate par bonds or floating rate","page_number":78,"box":{"x":69,"y":710,"width":812,"height":11}},{"id":"99294c76-6a91-4e7d-b4fe-da2ff9f44a8a","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":78,"box":{"x":69,"y":725,"width":796,"height":11}},{"id":"cd67d670-d07c-4d51-8107-e74557090592","block_type":"box","text":"same maturity as the Brady Bonds. Interest payments on these Brady Bonds generally are collateralized on a one","page_number":78,"box":{"x":69,"y":740,"width":812,"height":11}},{"id":"2ccbc542-c58f-4fc1-b5ff-1ae224d8c59e","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":78,"box":{"x":68,"y":755,"width":823,"height":11}},{"id":"20d41c95-11d0-465b-9a5e-f5bd8088a688","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":78,"box":{"x":68,"y":770,"width":833,"height":12}},{"id":"194376ed-7164-49e8-b5ca-0cbe7de3e586","block_type":"box","text":"interest payments based on the applicable interest rate at that time and is adjusted at regular intervals thereafter.","page_number":78,"box":{"x":70,"y":785,"width":816,"height":12}},{"id":"6d23b552-6b87-40e4-8175-6707b7bdf125","block_type":"box","text":"Certain Brady Bonds are entitled to “value recovery payments” in certain circumstances, which in effect constitute","page_number":78,"box":{"x":69,"y":801,"width":818,"height":11}},{"id":"77f0c3c3-ba4f-46f2-bd1d-6df3bf103cd9","block_type":"box","text":"supplemental interest payments but generally are not collateralized. Brady Bonds are often viewed as having three or","page_number":78,"box":{"x":69,"y":816,"width":835,"height":11}},{"id":"2c6dd510-bca2-455d-b9b0-dfc6bedfd0ff","block_type":"box","text":"four valuation components: (i) the collateralized repayment of principal at final maturity; (ii) the collateralized interest","page_number":78,"box":{"x":68,"y":831,"width":832,"height":11}},{"id":"58ccf621-8830-4b9b-a265-10b55e69689f","block_type":"box","text":"payments; (iii) the uncollateralized interest payments; and (iv) any uncollateralized repayment of principal at maturity","page_number":78,"box":{"x":70,"y":846,"width":828,"height":11}},{"id":"590d963c-4b36-410d-b11a-55b4f2131274","block_type":"box","text":"(the uncollateralized amounts constitute the “residual risk”).","page_number":78,"box":{"x":69,"y":861,"width":430,"height":11}},{"id":"01112473-0e00-4469-8f22-dbf2cba8247d","block_type":"box","text":"Brady Bonds involve various risk factors described above associated with investing in foreign securities, including","page_number":78,"box":{"x":102,"y":884,"width":807,"height":11}},{"id":"e3db0475-ac96-43ef-ab24-06bd94081477","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":78,"box":{"x":68,"y":899,"width":838,"height":11}},{"id":"f1c918ed-f099-4c19-8138-c50d22c4d493","block_type":"box","text":"II-40","page_number":78,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"adefc0df-4781-4384-9669-66b528302ecc","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":78,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d6ce3da4-8882-4166-b9b6-df7b4275e397","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":79,"box":{"x":70,"y":45,"width":819,"height":11}},{"id":"a08073aa-2d43-468c-ae2c-cdbe94b0f60c","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":79,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"f6b61e1e-3d15-477b-9520-e5566897e699","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":79,"box":{"x":68,"y":75,"width":841,"height":11}},{"id":"26ed293e-d3d1-46c0-90dd-ec7bb3dfcbd0","block_type":"box","text":"loss of interest or principal on any of its holdings.","page_number":79,"box":{"x":70,"y":90,"width":351,"height":11}},{"id":"e1aea3bd-9dfe-46b9-bd89-062577bcf86f","block_type":"box","text":"China Investments Risk.","page_number":79,"box":{"x":102,"y":113,"width":171,"height":9}},{"id":"573a3e3e-c8be-49b2-a5dc-b69bc99d4490","block_type":"box","text":"Investments in securities of companies domiciled in the People’s Republic of China (“China” or the “PRC”),","page_number":79,"box":{"x":102,"y":135,"width":763,"height":11}},{"id":"78d3a5c2-6a99-43d9-9171-34c8808976fa","block_type":"box","text":"including certain Hong Kong-listed and U.S.-listed securities, involve a high degree of risk and special considerations","page_number":79,"box":{"x":70,"y":150,"width":830,"height":12}},{"id":"a45e11f0-90ab-4346-b982-1215f3647b4f","block_type":"box","text":"not typically associated with investing in the U.S. securities markets. Such heightened risks include, among others,","page_number":79,"box":{"x":69,"y":166,"width":821,"height":11}},{"id":"eb9d1fcb-4eaf-4482-8121-48cfd6b338a3","block_type":"box","text":"an authoritarian government, popular unrest associated with demands for improved political, economic and social","page_number":79,"box":{"x":69,"y":181,"width":809,"height":11}},{"id":"18d38310-0f23-4e05-8bc0-bee25435f07d","block_type":"box","text":"conditions, the impact of regional conflict on the economy and hostile relations with other countries.","page_number":79,"box":{"x":69,"y":196,"width":713,"height":11}},{"id":"43a47b9c-09b0-41d5-8181-d4d99d15a506","block_type":"box","text":"Military conflicts, either in response to internal social unrest or conflicts with other countries, could disrupt","page_number":79,"box":{"x":102,"y":218,"width":762,"height":12}},{"id":"e590b199-3921-4fc4-8b22-aaf7086129e1","block_type":"box","text":"economic development. The Chinese economy is vulnerable to the long-running disagreements and religious and","page_number":79,"box":{"x":69,"y":234,"width":800,"height":11}},{"id":"50a8eaa8-79c2-4bc2-89d0-bd5430375ad0","block_type":"box","text":"nationalist disputes with Tibet and the Xinjiang region. Since 1997, there have been tensions between the Chinese","page_number":79,"box":{"x":69,"y":249,"width":820,"height":11}},{"id":"11154899-342a-4fd6-900d-ff7b36e8cfa4","block_type":"box","text":"government and many people in Hong Kong who perceive China as tightening control over Hong Kong’s semi","page_number":79,"box":{"x":68,"y":264,"width":777,"height":11}},{"id":"9f2300cb-8e42-4755-ae1e-0c9d283d9ced","block_type":"box","text":"autonomous liberal political, economic, legal, and social framework. Protests and unrest have increased tensions","page_number":79,"box":{"x":69,"y":279,"width":809,"height":11}},{"id":"ba5e4915-be08-4850-8fee-7b4224b6d351","block_type":"box","text":"even further. Due to the interconnected nature of the Hong Kong and Chinese economies, this instability in Hong","page_number":79,"box":{"x":69,"y":294,"width":805,"height":11}},{"id":"aa7ff553-4b38-475f-9970-a5f146a5adad","block_type":"box","text":"Kong may cause uncertainty in the Hong Kong and Chinese markets. China has a complex territorial dispute","page_number":79,"box":{"x":70,"y":309,"width":770,"height":11}},{"id":"23edf825-9a18-4003-b6e7-1e9e7df3be87","block_type":"box","text":"regarding the sovereignty of Taiwan and has made threats of invasion. Taiwan-based companies and individuals are","page_number":79,"box":{"x":69,"y":324,"width":821,"height":12}},{"id":"5c8ec4d6-6a98-47df-af14-83c32694044e","block_type":"box","text":"significant investors in China. The continuing hostility between China and Taiwan may have an adverse impact on the","page_number":79,"box":{"x":69,"y":339,"width":831,"height":12}},{"id":"06adedd0-b508-4362-9a55-3545b251356a","block_type":"box","text":"value of the Fund’s investments in China or Taiwan, may cause a suspension in a Fund’s ability to trade in certain","page_number":79,"box":{"x":68,"y":355,"width":812,"height":11}},{"id":"7fffae5a-b65f-45e8-a2f7-8cdd56159490","block_type":"box","text":"securities or other assets or may otherwise make such investments impracticable or impossible. Any escalation of","page_number":79,"box":{"x":69,"y":370,"width":818,"height":11}},{"id":"f37ea5fb-59ea-4924-b680-bad4faf9fb3a","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":79,"box":{"x":69,"y":385,"width":769,"height":11}},{"id":"a910a068-3d33-471b-b0fb-e08ad595b5bb","block_type":"box","text":"investments in both countries and the region. In addition, China has strained international relations with Japan, India,","page_number":79,"box":{"x":70,"y":400,"width":836,"height":11}},{"id":"2ae16a80-65cb-4106-bae6-cbab39c5adf0","block_type":"box","text":"the Philippines and other neighbors due to territorial disputes, historical animosities and other defense concerns.","page_number":79,"box":{"x":68,"y":415,"width":810,"height":11}},{"id":"8a842dc4-0b26-40ba-a1ca-bd95aae7e1d4","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":79,"box":{"x":70,"y":430,"width":813,"height":11}},{"id":"3fbb0040-f88b-42d7-a035-b290c28d7177","block_type":"box","text":"military conflict. Additionally, China is alleged to have participated in state-sponsored cyberattacks against foreign","page_number":79,"box":{"x":69,"y":445,"width":811,"height":12}},{"id":"dd3587eb-c98a-4753-949f-ebf7b83a9ca8","block_type":"box","text":"companies and foreign governments. Actual and threatened responses to such activity and strained international","page_number":79,"box":{"x":69,"y":460,"width":804,"height":12}},{"id":"4f02b381-e76b-497f-8e56-008c410e8e00","block_type":"box","text":"relations, including purchasing restrictions, sanctions, tariffs or cyberattacks on the Chinese government or Chinese","page_number":79,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"7fabd6e6-5929-4e26-834a-b5d7b15f106f","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":79,"box":{"x":69,"y":491,"width":825,"height":11}},{"id":"c486fcf4-99cf-437b-8989-4fa4df4a85ad","block_type":"box","text":"affected by military events on the Korean peninsula or internal instability within North Korea. These situations may","page_number":79,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"63ab629f-106c-40d6-a87b-08b8815dedb1","block_type":"box","text":"cause uncertainty in the Chinese market and may adversely affect the performance of the Chinese economy.","page_number":79,"box":{"x":69,"y":521,"width":776,"height":11}},{"id":"81c964db-6e18-4b5c-9f99-fc10ca682aa1","block_type":"box","text":"The Chinese government has implemented economic reforms in order to liberalize trade policy, promote foreign","page_number":79,"box":{"x":101,"y":543,"width":792,"height":12}},{"id":"f6d840e8-9b8a-4c9c-a547-6c8bee712145","block_type":"box","text":"investment in the economy, reduce government control of the economy and develop market mechanisms. However,","page_number":79,"box":{"x":70,"y":559,"width":818,"height":11}},{"id":"552dd270-14e0-4805-abc4-2397d02b8816","block_type":"box","text":"the Chinese government still exercises substantial influence over many aspects of the private sector and may own or","page_number":79,"box":{"x":68,"y":574,"width":835,"height":11}},{"id":"a12a881e-00de-4642-9ac8-a74abdd516b7","block_type":"box","text":"control many companies. Chinese companies, such as those in the financial services or technology sectors, and","page_number":79,"box":{"x":69,"y":589,"width":802,"height":11}},{"id":"36f7b2d1-cde0-4930-aa4f-794bce118efc","block_type":"box","text":"potentially other sectors in the future, are subject to the risk that Chinese authorities can intervene in their","page_number":79,"box":{"x":70,"y":604,"width":763,"height":11}},{"id":"460eb58d-312f-4ab1-9eae-973eb4797af8","block_type":"box","text":"operations and structure. The Chinese government continues to maintain a major role in economic policymaking and","page_number":79,"box":{"x":69,"y":619,"width":829,"height":11}},{"id":"058cabf5-330a-4cff-926b-83b948dc74e4","block_type":"box","text":"investing in China involves risk of loss due to expropriation, nationalization, confiscation of assets and property or","page_number":79,"box":{"x":70,"y":634,"width":813,"height":12}},{"id":"341eaec3-f0ad-456b-a8c1-45de610e4c77","block_type":"box","text":"the imposition of restrictions on foreign investments and on repatriation of capital invested.","page_number":79,"box":{"x":68,"y":649,"width":653,"height":12}},{"id":"3a8d34be-2eb7-4fb0-a8ec-aa46cc19149f","block_type":"box","text":"The Chinese government may intervene in the Chinese financial markets, such as by the imposition of trading","page_number":79,"box":{"x":101,"y":672,"width":783,"height":11}},{"id":"d75ec105-5d2b-4f84-8682-6e74c167a4a4","block_type":"box","text":"restrictions, a ban on “naked” short selling or the suspension of short selling for certain stocks. This may affect","page_number":79,"box":{"x":69,"y":687,"width":805,"height":11}},{"id":"c59f2c06-668b-4bb2-b454-7ec23f859786","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":79,"box":{"x":69,"y":702,"width":827,"height":11}},{"id":"9b508314-de6d-4c92-9d42-5876e19b771a","block_type":"box","text":"Funds. Furthermore, such market interventions may have a negative impact on market sentiment which may in turn","page_number":79,"box":{"x":70,"y":718,"width":821,"height":11}},{"id":"6ed4c4da-c509-4caf-9d9b-82645f1de216","block_type":"box","text":"affect the performance of the securities markets and as a result the performance of the Funds.","page_number":79,"box":{"x":69,"y":732,"width":683,"height":11}},{"id":"957f9141-4f24-496e-8740-6414de2565ab","block_type":"box","text":"In addition, there is less regulation and monitoring of Chinese securities markets and the activities of investors,","page_number":79,"box":{"x":102,"y":755,"width":797,"height":11}},{"id":"81492206-9223-4a88-97b8-3e45d0af4c8f","block_type":"box","text":"brokers and other participants than in the United States. Accordingly, issuers of securities in China, including","page_number":79,"box":{"x":69,"y":770,"width":779,"height":12}},{"id":"4d041f82-aecd-45d0-b442-fcd350e0ac84","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":79,"box":{"x":69,"y":785,"width":822,"height":12}},{"id":"9ebc3a4a-f796-41fd-9d5d-3fec7d0a92f5","block_type":"box","text":"issuers with respect to such matters as insider trading rules, tender offer regulation, accounting standards or auditor","page_number":79,"box":{"x":70,"y":801,"width":836,"height":11}},{"id":"bb255624-614d-4fce-b446-f53e8b3b55e1","block_type":"box","text":"oversight, stockholder proxy requirements and the requirements mandating timely and accurate disclosure of","page_number":79,"box":{"x":69,"y":816,"width":778,"height":11}},{"id":"cfc47a1c-1c1e-4273-a137-afc7ca9ba8a6","block_type":"box","text":"information. Securities markets in China are in the process of change and further development. This may lead to","page_number":79,"box":{"x":70,"y":831,"width":803,"height":11}},{"id":"3382b845-7e17-49f8-9902-61311362fd8e","block_type":"box","text":"trading volatility, difficulty in the settlement and recording of transactions and difficulty in interpreting and applying","page_number":79,"box":{"x":68,"y":846,"width":816,"height":11}},{"id":"899956c6-d2bb-477d-9b35-0dea9002779b","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":79,"box":{"x":68,"y":861,"width":816,"height":11}},{"id":"ce916675-5673-4cd9-b3d1-ea03d9438474","block_type":"box","text":"settlement and administration of securities in China that is customary in more developed markets. In particular,","page_number":79,"box":{"x":69,"y":876,"width":798,"height":11}},{"id":"75c98526-0678-48d2-9c17-6ddb0c7a421e","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":79,"box":{"x":68,"y":891,"width":826,"height":12}},{"id":"1c4aef52-39cd-4177-909d-774a4ddd56e8","block_type":"box","text":"sub-custodian.","page_number":79,"box":{"x":69,"y":907,"width":102,"height":8}},{"id":"7d69d21a-add6-45ea-9301-3bd1909ddcf1","block_type":"box","text":"II-41","page_number":79,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"5ab21a38-95c5-4676-8018-3e16a9da73c9","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":79,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"08ad0756-378b-4e48-8f67-49be41ffd39d","block_type":"box","text":"There may be significant obstacles to obtaining information necessary for investigations into or litigation against","page_number":80,"box":{"x":101,"y":45,"width":801,"height":11}},{"id":"6f3414c2-6e9b-4fe1-8ecf-f158c9489e90","block_type":"box","text":"Chinese companies, and shareholders may have limited legal remedies. The Funds do not select investments based","page_number":80,"box":{"x":69,"y":60,"width":829,"height":11}},{"id":"27d7ba07-0132-4dfb-88a9-1e5e5a5f05d1","block_type":"box","text":"on investor protection considerations.","page_number":80,"box":{"x":69,"y":75,"width":268,"height":11}},{"id":"161324fe-9893-41c5-a206-a3fc2b7a4ba6","block_type":"box","text":"The Chinese government historically took positions that prevented the U.S. Public Company Accounting Oversight","page_number":80,"box":{"x":101,"y":98,"width":806,"height":11}},{"id":"16231533-116b-437c-b083-6f50c45f6a4a","block_type":"box","text":"Board (“PCAOB”) from inspecting the audit work and practices of accounting firms in mainland China and Hong Kong","page_number":80,"box":{"x":70,"y":113,"width":829,"height":11}},{"id":"a779973a-8ad2-4eb9-ba9f-b54827a6c06c","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":80,"box":{"x":68,"y":128,"width":810,"height":11}},{"id":"68f68a91-a15b-495e-9b84-cfcabe9e3efd","block_type":"box","text":"Protocol with the China Securities Regulatory Commission and the Ministry of Finance of the PRC, which marked the","page_number":80,"box":{"x":69,"y":143,"width":829,"height":11}},{"id":"f1985a40-b513-4326-8935-717210c74f82","block_type":"box","text":"first step toward opening access for the PCAOB to inspect and investigate registered public accounting firms","page_number":80,"box":{"x":68,"y":158,"width":774,"height":11}},{"id":"c0ea8a37-23d1-42ca-8e09-317612d0f9f2","block_type":"box","text":"headquartered in mainland China and Hong Kong completely in accordance with U.S. law. However, as this","page_number":80,"box":{"x":69,"y":173,"width":760,"height":11}},{"id":"e501b5ec-9ebb-4e45-8141-19eef5949180","block_type":"box","text":"development is relatively recent, the implementation of the Statement of Protocol remains to be tested. Audits","page_number":80,"box":{"x":69,"y":188,"width":788,"height":11}},{"id":"607e9b69-45cf-4d7c-97d4-54d0e0e5a655","block_type":"box","text":"performed by PCAOB-registered accounting firms in mainland China and Hong Kong may be less reliable than those","page_number":80,"box":{"x":70,"y":203,"width":822,"height":12}},{"id":"1508a83c-9738-4011-8885-c38bb9520a7b","block_type":"box","text":"performed by firms subject to PCAOB inspection. Accordingly, information about the Chinese securities in which the","page_number":80,"box":{"x":70,"y":218,"width":821,"height":12}},{"id":"05052735-5107-4021-81a6-29be01e524c8","block_type":"box","text":"Funds invest may be less reliable or complete. Under amendments to the Sarbanes-Oxley Act enacted in December","page_number":80,"box":{"x":70,"y":234,"width":820,"height":11}},{"id":"4cbeda56-95b0-4f14-bb70-34f02ec3853b","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":80,"box":{"x":69,"y":249,"width":805,"height":11}},{"id":"f73e2cb0-19b8-4146-8789-fc3b3a6d9f2e","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":80,"box":{"x":69,"y":264,"width":816,"height":11}},{"id":"dbbd2592-3ffa-40ac-826e-037b90261812","block_type":"box","text":"accounting firm.","page_number":80,"box":{"x":69,"y":279,"width":112,"height":11}},{"id":"361bf6e0-e0b1-48f5-a3ef-079fa62bb666","block_type":"box","text":"The Renminbi (“RMB”) is currently not a freely convertible currency and is subject to foreign exchange control","page_number":80,"box":{"x":101,"y":302,"width":780,"height":11}},{"id":"df929699-339a-4cd2-a9f6-feeefc9103f3","block_type":"box","text":"policies and repatriation restrictions imposed by the Chinese government. The imposition of currency controls may","page_number":80,"box":{"x":70,"y":317,"width":815,"height":11}},{"id":"ffd15f3b-684b-4307-ac0a-8cffaa35ac6c","block_type":"box","text":"negatively impact performance and liquidity of the Funds as capital may become trapped in the PRC. The Funds could","page_number":80,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"4c438f00-0181-4c06-8e88-166120c55c36","block_type":"box","text":"be adversely affected by delays in, or a refusal to grant, any required governmental approval for repatriation of","page_number":80,"box":{"x":69,"y":347,"width":787,"height":11}},{"id":"1ae14af2-5330-4ee3-a62e-e1e7a8a2a3de","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":80,"box":{"x":69,"y":362,"width":837,"height":11}},{"id":"90dbd73e-6571-49ef-8923-1392a75f578f","block_type":"box","text":"which have a substantial portion of their operations in, the PRC may require the Funds to adopt special procedures,","page_number":80,"box":{"x":68,"y":377,"width":825,"height":11}},{"id":"cead5a68-d9de-48de-8a4b-f371bb4717ba","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":80,"box":{"x":69,"y":392,"width":828,"height":12}},{"id":"592baa2b-8870-4d68-91e7-81538d7214dd","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":80,"box":{"x":70,"y":408,"width":812,"height":11}},{"id":"03768a77-1471-4b93-8e41-7a9849e048c7","block_type":"box","text":"connection with conversions between the two separate types of RMB, the onshore RMB (“CNY”) and the offshore","page_number":80,"box":{"x":69,"y":423,"width":808,"height":11}},{"id":"4194974f-53a2-43f5-8c20-87adeea21de9","block_type":"box","text":"RMB (“CNH”).","page_number":80,"box":{"x":70,"y":438,"width":97,"height":11}},{"id":"d0a900da-1669-4d6f-b65f-05779fce944c","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":80,"box":{"x":102,"y":460,"width":802,"height":12}},{"id":"7631dcf9-5f2c-4d86-bbd1-4b0677068f03","block_type":"box","text":"result of foreign ownership restrictions. In a VIE structure, a Chinese operating company establishes a shell company","page_number":80,"box":{"x":69,"y":475,"width":837,"height":12}},{"id":"7c5e2986-2556-4a14-b97e-6fb23721290b","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":80,"box":{"x":70,"y":491,"width":822,"height":11}},{"id":"ecee7934-0cb0-47bd-b3a3-dd3cbb9375a1","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":80,"box":{"x":70,"y":506,"width":775,"height":11}},{"id":"6b68c25b-b964-4ea2-9f87-d0149d8f1566","block_type":"box","text":"company directly or indirectly enters into contracts with the Chinese operating company under Chinese law. These","page_number":80,"box":{"x":69,"y":521,"width":809,"height":11}},{"id":"966faf4d-8c49-46f4-9ecc-97ac5865ffca","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":80,"box":{"x":69,"y":536,"width":803,"height":11}},{"id":"7939f3f3-6704-47f6-aedb-5760ca4e3ef5","block_type":"box","text":"represent equity ownership in the operating company.","page_number":80,"box":{"x":69,"y":551,"width":380,"height":11}},{"id":"e5dd8240-995f-44fe-875d-84bb93cef35b","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":80,"box":{"x":101,"y":574,"width":801,"height":11}},{"id":"251d08b8-a831-40df-8d3d-2ea56cf5b1e6","block_type":"box","text":"formally recognized under Chinese law. The Chinese government has provided guidance to and placed restrictions on","page_number":80,"box":{"x":68,"y":589,"width":833,"height":11}},{"id":"02e04eff-020a-425e-aef3-e3b81a1868c2","block_type":"box","text":"Chinese-based companies raising capital offshore, including through VIEs. In 2023, the China Securities Regulatory","page_number":80,"box":{"x":69,"y":604,"width":825,"height":11}},{"id":"284e0b7a-304c-4a0c-9e6a-9f5a02826b96","block_type":"box","text":"Commission (“CSRC”) released new rules that permit the use of VIE structures, provided they abide by Chinese laws","page_number":80,"box":{"x":69,"y":619,"width":832,"height":11}},{"id":"53c922b6-1a54-4010-a43d-3127410e0cdb","block_type":"box","text":"and register with the CSRC. The rules, however, may cause Chinese companies to undergo greater scrutiny and add","page_number":80,"box":{"x":69,"y":634,"width":826,"height":12}},{"id":"ba9e5607-883b-4c9c-89b9-cd97eda90366","block_type":"box","text":"costs to VIE structures. Intervention, rulemaking or guidance by the Chinese government with respect to VIE","page_number":80,"box":{"x":69,"y":649,"width":770,"height":12}},{"id":"61a23ffe-61cc-4d3d-9230-5acd47211dca","block_type":"box","text":"structures or the non-enforcement of VIE-related contractual rights could significantly affect the operating company’s","page_number":80,"box":{"x":69,"y":664,"width":829,"height":12}},{"id":"25057fa3-b595-4627-a2e6-e05f51fdba75","block_type":"box","text":"business in China, the enforceability of the U.S.-listed shell company’s contractual arrangements with the Chinese","page_number":80,"box":{"x":69,"y":680,"width":815,"height":11}},{"id":"4e9c7625-725a-40ee-a002-0f792e4d2d6b","block_type":"box","text":"company and the value of the U.S.-listed stock. Further, the VIE contractual arrangement would likely be subject to","page_number":80,"box":{"x":69,"y":695,"width":815,"height":11}},{"id":"b6f48b74-771b-44f2-9681-40d20493cffb","block_type":"box","text":"Chinese law and jurisdiction, and remedies available to the U.S.-listed shell company are uncertain and could be","page_number":80,"box":{"x":69,"y":710,"width":802,"height":11}},{"id":"88be3b40-3b92-454a-913b-3a7f6f77619a","block_type":"box","text":"ineffective. In addition to the risk of government intervention, investments through a VIE structure are subject to the","page_number":80,"box":{"x":70,"y":725,"width":828,"height":11}},{"id":"ac1f1a74-9e3f-4d1e-a621-0f16ef997c80","block_type":"box","text":"risk that the China-based company (or its officers, directors, or Chinese equity owners) may breach those contractual","page_number":80,"box":{"x":69,"y":740,"width":833,"height":11}},{"id":"aa7d6e9c-a15c-4598-b3be-b3b928a72f7d","block_type":"box","text":"arrangements, or Chinese law changes in a way that adversely affects the enforceability of these arrangements, or","page_number":80,"box":{"x":69,"y":755,"width":819,"height":11}},{"id":"a3947dbc-1bff-403e-8825-a8f96b60d18f","block_type":"box","text":"those contracts are otherwise not enforceable under Chinese law, in which case the Fund may suffer significant","page_number":80,"box":{"x":68,"y":770,"width":798,"height":12}},{"id":"1650b0f2-9fa2-43ca-8e5e-928b45558414","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":80,"box":{"x":70,"y":785,"width":833,"height":12}},{"id":"1f5ebe82-1736-4496-b704-abec2dacf36d","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":80,"box":{"x":69,"y":801,"width":837,"height":11}},{"id":"efebdaed-7288-435d-8bfe-140f16f75239","block_type":"box","text":"generally or with respect to specific industries, could result in significant, and possibly permanent and/or total,","page_number":80,"box":{"x":68,"y":816,"width":792,"height":11}},{"id":"c4894236-3c83-4d52-90e4-6c01bb92106a","block_type":"box","text":"losses to a Fund.","page_number":80,"box":{"x":70,"y":831,"width":120,"height":9}},{"id":"147628af-7687-4003-9ae1-04bf09c45d1c","block_type":"box","text":"While the Chinese economy has experienced past periods of rapid growth, there is no assurance that such","page_number":80,"box":{"x":101,"y":853,"width":760,"height":12}},{"id":"ad226716-0ae6-4fcb-bdd4-d358ad87b7a1","block_type":"box","text":"growth rates will recur. Other economic challenges for China include indebtedness, weak consumer demand, trade","page_number":80,"box":{"x":68,"y":869,"width":815,"height":11}},{"id":"09f1ccff-258c-4fda-af3a-3818e37c23d3","block_type":"box","text":"tensions, and an aging population. China continues to face pressure from its trading partners over its exporting of its","page_number":80,"box":{"x":68,"y":884,"width":837,"height":11}},{"id":"bc4049da-a236-40c5-9258-6b1600f7e637","block_type":"box","text":"excess industrial capacity and overall approach to economic management. China’s economy is heavily dependent on","page_number":80,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"7ced9a7c-661e-49b4-b613-a9b64ce51045","block_type":"box","text":"II-42","page_number":80,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"40f79585-9bf0-4e91-861a-bba0ab3b5188","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":80,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"dc9065fb-a604-47a4-8df5-e40dd5c6b41a","block_type":"box","text":"export growth. Reduction in spending on Chinese products and services, supply chain diversification, institution of","page_number":81,"box":{"x":69,"y":45,"width":815,"height":11}},{"id":"2ccb5d18-10d8-4539-bc51-94c6f70f77d2","block_type":"box","text":"additional tariffs, sanctions or other trade barriers (including as a result of heightened trade tensions between China","page_number":81,"box":{"x":69,"y":60,"width":832,"height":11}},{"id":"3fa85702-502e-422c-b3a9-4e218ed27336","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":81,"box":{"x":69,"y":75,"width":765,"height":11}},{"id":"fa5f7c28-87a2-4dd5-a959-f1510b04fb7b","block_type":"box","text":"economies of China’s key trading partners may have an adverse impact on the Chinese economy and the companies","page_number":81,"box":{"x":69,"y":90,"width":833,"height":11}},{"id":"e7bd98ce-10e9-4c87-b7cd-9653226f4dd6","block_type":"box","text":"in which a Fund invests. Certain Chinese companies (which may change from time to time) are directly or indirectly","page_number":81,"box":{"x":70,"y":105,"width":816,"height":11}},{"id":"567e74ef-71fe-47df-9b03-08e90f813801","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":81,"box":{"x":69,"y":120,"width":824,"height":12}},{"id":"f2e528ec-4152-4594-95ca-fb8f075e0d6b","block_type":"box","text":"rights or other concerns of such government. For example, certain foreign technology companies are subject to U.S.","page_number":81,"box":{"x":69,"y":135,"width":825,"height":12}},{"id":"0eeb6e1c-f8f5-48c2-bdd8-03a2d3b3cf90","block_type":"box","text":"export controls as those companies are believed to pose a risk to U.S. interests. The U.S. also bans imports of","page_number":81,"box":{"x":69,"y":150,"width":798,"height":11}},{"id":"0e83a23b-aa09-4019-9bcd-1b305b725129","block_type":"box","text":"goods produced in certain regions of China or by certain Chinese companies due to concerns about forced labor.","page_number":81,"box":{"x":68,"y":166,"width":805,"height":11}},{"id":"9257dd0e-4661-4149-a243-097bff2a12b8","block_type":"box","text":"Such restrictions may have unanticipated and adverse effects on the Chinese economy and companies. Any action","page_number":81,"box":{"x":69,"y":181,"width":817,"height":11}},{"id":"02771697-f3ed-4bbe-8ae2-b01908d9ba26","block_type":"box","text":"that targets Chinese financial markets or securities exchanges could interfere with orderly trading, delay settlement","page_number":81,"box":{"x":68,"y":196,"width":825,"height":11}},{"id":"69d6fa90-44a8-4c1a-8a23-d9d4fe307b6b","block_type":"box","text":"or cause market disruptions. Certain companies may be subject to economic or trade restrictions (but not investment","page_number":81,"box":{"x":69,"y":211,"width":839,"height":11}},{"id":"d287d30b-dbd8-4bf1-a8c1-0175f3c3c530","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":81,"box":{"x":69,"y":226,"width":815,"height":11}},{"id":"1adc9c0f-c16f-447c-ad9e-46ea9cb2f759","block_type":"box","text":"such government. So long as these restrictions do not include restrictions on investments, the Fund may invest in","page_number":81,"box":{"x":69,"y":241,"width":812,"height":11}},{"id":"9da23829-8a13-43cd-b628-c8509ad72d72","block_type":"box","text":"such companies.","page_number":81,"box":{"x":69,"y":257,"width":119,"height":10}},{"id":"6e5497e3-c92a-4085-9c01-84a211330695","block_type":"box","text":"The tax laws and regulations in the PRC are subject to change, including the issuance of authoritative guidance","page_number":81,"box":{"x":101,"y":279,"width":792,"height":11}},{"id":"ee5ccfa4-1b7d-43f0-bfba-c28f5560ab67","block_type":"box","text":"or enforcement, possibly with retroactive effect. The interpretation, applicability and enforcement of such laws by PRC","page_number":81,"box":{"x":69,"y":294,"width":840,"height":11}},{"id":"dca15674-c896-4c2b-a42d-2e4a20acf0a4","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":81,"box":{"x":68,"y":309,"width":815,"height":11}},{"id":"1c50b977-50eb-4883-bef4-a8c5016b474e","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":81,"box":{"x":69,"y":324,"width":823,"height":12}},{"id":"bbbe8abe-b10f-4fc1-af4a-091e5b32259d","block_type":"box","text":"on a Fund and its investors, particularly in relation to capital gains withholding tax imposed upon non-residents. In","page_number":81,"box":{"x":69,"y":340,"width":812,"height":11}},{"id":"f74406dd-ca7c-4fc7-a0bb-5dfe3af99eeb","block_type":"box","text":"addition, the accounting, auditing and financial reporting standards and practices applicable to Chinese companies","page_number":81,"box":{"x":69,"y":355,"width":821,"height":11}},{"id":"12a83ba0-66ad-4f86-a43c-bf690cef7df9","block_type":"box","text":"may be less rigorous, and may result in significant differences between financial statements prepared in accordance","page_number":81,"box":{"x":69,"y":370,"width":832,"height":11}},{"id":"6bb9b941-5f4c-42b2-8a20-6ae162bd0967","block_type":"box","text":"with PRC accounting standards and practice and those prepared in accordance with international accounting","page_number":81,"box":{"x":68,"y":385,"width":773,"height":11}},{"id":"c477e756-b6d5-44df-a95a-7d807ac90cff","block_type":"box","text":"standards.","page_number":81,"box":{"x":69,"y":400,"width":74,"height":9}},{"id":"41736c1f-7995-4373-bc80-2ac3f31a19fd","block_type":"box","text":"From time to time and in recent years, China has experienced outbreaks of infectious illnesses and the country","page_number":81,"box":{"x":102,"y":423,"width":794,"height":11}},{"id":"2fd00522-933a-4423-9549-ae3e7c8892c8","block_type":"box","text":"may be subject to other public health threats, infectious illnesses, diseases or similar issues in the future. Any","page_number":81,"box":{"x":69,"y":438,"width":792,"height":11}},{"id":"93a52326-cd55-42a2-83b2-c58782532458","block_type":"box","text":"spread of an infectious illness, public health threat or similar issue could reduce consumer demand or economic","page_number":81,"box":{"x":69,"y":453,"width":803,"height":11}},{"id":"43560d15-7f68-4cfe-a947-7f2b23d853f2","block_type":"box","text":"output, result in market closures, travel restrictions or quarantines, and generally have a significant impact on the","page_number":81,"box":{"x":69,"y":468,"width":811,"height":11}},{"id":"4b17378f-e1ab-42cd-9947-ee3bcfc05d62","block_type":"box","text":"Chinese economy, which in turn could adversely affect a Fund’s investments.","page_number":81,"box":{"x":69,"y":483,"width":548,"height":11}},{"id":"84554499-7635-46c2-9d0d-93dd232fedeb","block_type":"box","text":"Risk of Investing through Stock Connect.","page_number":81,"box":{"x":102,"y":506,"width":288,"height":11}},{"id":"3fbd4030-5a21-4b4f-9805-96adf120fa93","block_type":"box","text":"General","page_number":81,"box":{"x":102,"y":529,"width":55,"height":8}},{"id":"ef09dd48-d643-47e6-82f2-8e2acef1ff53","block_type":"box","text":". China A-shares are equity securities of companies domiciled in China that trade on Chinese stock","page_number":81,"box":{"x":158,"y":528,"width":704,"height":12}},{"id":"bed59750-573d-43a5-a090-4f7c6734323e","block_type":"box","text":"exchanges such as the Shanghai Stock Exchange (“SSE”), the Shenzhen Stock Exchange (“SZSE”) and the Beijing","page_number":81,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"1b948256-719a-4804-adce-da72aae37414","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":81,"box":{"x":69,"y":559,"width":815,"height":11}},{"id":"032d85d6-7bec-4b1a-98bd-1cd78eb15559","block_type":"box","text":"than pursuant to available exceptions, such as through a qualified foreign investor approved pursuant to the relevant","page_number":81,"box":{"x":68,"y":574,"width":833,"height":11}},{"id":"ec67b11a-8b42-4563-a1c7-d5a53fcd9974","block_type":"box","text":"mainland China laws and regulations as may be promulgated and/or amended from time to time (“QFI”).","page_number":81,"box":{"x":69,"y":589,"width":744,"height":11}},{"id":"3fed6abc-4988-4335-acb0-d30c684d4b90","block_type":"box","text":"Investment in eligible exchange traded funds and A-shares listed and traded on the SSE or SZSE (“Stock","page_number":81,"box":{"x":102,"y":612,"width":745,"height":11}},{"id":"d7dcb753-8f0e-476c-aaab-fa0a4d0b6343","block_type":"box","text":"Connect Securities”) is also permitted through the Shanghai-Hong Kong Stock Connect program or the Shenzhen","page_number":81,"box":{"x":69,"y":627,"width":807,"height":11}},{"id":"b05138eb-5e75-4ca7-8169-f82d7995d7f5","block_type":"box","text":"Hong Kong Stock Connect program, as applicable (each, a “Stock Connect” and collectively, “Stock Connects”). Each","page_number":81,"box":{"x":70,"y":642,"width":834,"height":11}},{"id":"f0535360-a8ba-4224-98da-1da6689b0f69","block_type":"box","text":"Stock Connect is a securities trading and clearing links program established by The Stock Exchange of Hong Kong","page_number":81,"box":{"x":69,"y":657,"width":812,"height":11}},{"id":"3a20f4a7-6f2c-403a-bbf3-2cca556492f8","block_type":"box","text":"Limited (“SEHK”), the Hong Kong Securities Clearing Company Limited (“HKSCC”), the SSE or SZSE, as applicable,","page_number":81,"box":{"x":70,"y":672,"width":819,"height":11}},{"id":"42a50755-45db-4f11-b753-91d4f83fc5d8","block_type":"box","text":"and China Securities Depository and Clearing Corporation Limited (“CSDCC”) that aims to provide mutual stock","page_number":81,"box":{"x":69,"y":687,"width":793,"height":11}},{"id":"bf76f6da-6c57-4db7-ba19-b8934e23810d","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":81,"box":{"x":69,"y":702,"width":818,"height":12}},{"id":"b5818801-21a0-4eaa-b628-6e533ae16148","block_type":"box","text":"through their local securities brokers. Under Stock Connects, a Fund’s trading of Stock Connect Securities listed on","page_number":81,"box":{"x":68,"y":717,"width":824,"height":12}},{"id":"89437593-6c36-454a-a9e9-cd1104af6441","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":81,"box":{"x":68,"y":732,"width":827,"height":12}},{"id":"469117da-657e-4c9e-8f9e-8bf05db86d8d","block_type":"box","text":"company established by SEHK.","page_number":81,"box":{"x":69,"y":748,"width":219,"height":11}},{"id":"1259922d-ccbf-435b-b1c1-3c751d44dbfe","block_type":"box","text":"Although no individual investment quotas or licensing requirements apply to investors in Stock Connect, trading","page_number":81,"box":{"x":101,"y":770,"width":794,"height":12}},{"id":"acee15b2-44f9-4ffc-87b3-22fde25515ec","block_type":"box","text":"through a Stock Connect’s Northbound Trading Link is subject to daily investment quota limitations which require that","page_number":81,"box":{"x":68,"y":786,"width":839,"height":11}},{"id":"ca27584d-0bcd-4a90-b6da-01cc6f18255d","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":81,"box":{"x":69,"y":801,"width":779,"height":11}},{"id":"8b3f1662-c6fa-4b85-b61d-37f2733dbe3b","block_type":"box","text":"permitted to sell their Stock Connect Securities regardless of the quota). These limitations may restrict a Fund from","page_number":81,"box":{"x":70,"y":816,"width":824,"height":11}},{"id":"dfd65ae0-697b-476c-a043-50e981f5b0d7","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":81,"box":{"x":70,"y":831,"width":827,"height":11}},{"id":"f7b92314-6091-4bd9-83d6-0c66ed7a350c","block_type":"box","text":"investment strategy. Investment quotas are also subject to change. Investment in Stock Connect Securities through a","page_number":81,"box":{"x":70,"y":846,"width":837,"height":11}},{"id":"bf709fb9-e0e6-44a5-b6dd-9ef5c4a2bce4","block_type":"box","text":"Stock Connect is subject to trading, clearance and settlement procedures that could pose risks to a Fund. Stock","page_number":81,"box":{"x":69,"y":861,"width":802,"height":11}},{"id":"635ecb2c-6fd5-4184-890c-4114b14e2e08","block_type":"box","text":"Connect Securities purchased through Stock Connects generally may not be sold or otherwise transferred other than","page_number":81,"box":{"x":69,"y":876,"width":831,"height":11}},{"id":"8acac2b9-fd71-417b-a8b4-f64c6e070e3f","block_type":"box","text":"through Stock Connects in accordance with applicable rules. For example, the PRC regulations require that in order","page_number":81,"box":{"x":68,"y":891,"width":821,"height":12}},{"id":"924252e0-3b88-4038-83bb-4ccfbe2380a5","block_type":"box","text":"for an investor to sell any Stock Connect Securities on a certain trading day, there must be sufficient Stock Connect","page_number":81,"box":{"x":68,"y":906,"width":829,"height":12}},{"id":"09388e51-b858-4251-9795-ad63c5b1cc10","block_type":"box","text":"II-43","page_number":81,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"65d2b84f-7100-42e0-9b84-d5a8be00f913","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":81,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a367b84c-8d2c-45b8-a92f-9e965ba8cd47","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":82,"box":{"x":69,"y":45,"width":797,"height":11}},{"id":"43520c60-7dc9-4c97-9bd2-db61cb16d6d6","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":82,"box":{"x":69,"y":60,"width":820,"height":11}},{"id":"5f8b43e2-589a-4449-9e06-9a270ddfbb6d","block_type":"box","text":"out pre-trade checking on sell orders of certain stocks listed on the SSE market (“SSE Securities”) or SZSE market","page_number":82,"box":{"x":69,"y":75,"width":820,"height":11}},{"id":"29b99f47-3a74-49c5-bff7-a6d0e86ee13f","block_type":"box","text":"(“SZSE Securities”) of its participants (","page_number":82,"box":{"x":69,"y":90,"width":278,"height":11}},{"id":"1ef91312-d59b-4ce0-aa65-b249d1c0c16b","block_type":"box","text":"i.e.","page_number":82,"box":{"x":349,"y":90,"width":21,"height":9}},{"id":"785ad06f-710c-46fe-b543-f81c47efa0b8","block_type":"box","text":", stock brokers) to ensure that this requirement is satisfied. While shares","page_number":82,"box":{"x":372,"y":90,"width":524,"height":11}},{"id":"68e60cf9-be1d-4e3b-8027-19f2bf71ec77","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":82,"box":{"x":69,"y":105,"width":815,"height":11}},{"id":"1c2cc51d-9339-4aa1-bec5-c20ed07ffdd8","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":82,"box":{"x":69,"y":120,"width":810,"height":12}},{"id":"4399d250-02d5-4227-90d3-bfc98b546dd5","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":82,"box":{"x":69,"y":135,"width":834,"height":12}},{"id":"b4ddbc3e-066a-4124-b3fd-de75952ce657","block_type":"box","text":"services are available in both markets on the corresponding settlement days. Therefore, an investment in Stock","page_number":82,"box":{"x":69,"y":150,"width":799,"height":12}},{"id":"08b4a600-1692-47ef-bc40-02a053c3c407","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":82,"box":{"x":69,"y":166,"width":797,"height":11}},{"id":"aa6acda2-865f-4ef6-94b7-cd2f3493dc08","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":82,"box":{"x":69,"y":181,"width":818,"height":11}},{"id":"7766f742-fd05-4882-ae09-86d6881debef","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":82,"box":{"x":68,"y":196,"width":820,"height":11}},{"id":"8cadd6cf-c52d-4aaf-a486-cfe6dd1eaca7","block_type":"box","text":"be able to sell the Stock Connect Securities on or after day T+1. Further, since all trades of Stock Connect Securities","page_number":82,"box":{"x":69,"y":211,"width":836,"height":11}},{"id":"60ff9b55-e20f-496e-a299-6e727f663da3","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":82,"box":{"x":69,"y":226,"width":811,"height":11}},{"id":"a8c47735-bd39-4623-8b8e-a714eb035cca","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":82,"box":{"x":68,"y":241,"width":815,"height":11}},{"id":"f8a779fd-dc3e-41c8-98c4-470615bfde6f","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":82,"box":{"x":69,"y":256,"width":824,"height":11}},{"id":"7f61a572-7aae-4ed0-a3ea-64e3c35582e2","block_type":"box","text":"RMB, the Fund will be exposed to currency exchange risk if the Fund converts the local currency into RMB for","page_number":82,"box":{"x":70,"y":271,"width":777,"height":12}},{"id":"daf540d9-8e0e-407e-821f-d2e604802d27","block_type":"box","text":"investments in Stock Connect Securities. A Fund may also incur conversion costs.","page_number":82,"box":{"x":70,"y":287,"width":582,"height":11}},{"id":"19724a2d-4dcb-453d-84c0-526861a63592","block_type":"box","text":"Stock Connect Securities held through the nominee structure under a Stock Connect will be held through HKSCC","page_number":82,"box":{"x":102,"y":309,"width":802,"height":11}},{"id":"b0f302a9-1357-434e-a0eb-5bc01a8ac954","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":82,"box":{"x":69,"y":324,"width":784,"height":12}},{"id":"c91de9f5-142f-427c-ac94-ea9bd3b65ac2","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":82,"box":{"x":69,"y":339,"width":837,"height":12}},{"id":"0911a063-cc29-444b-ac0e-5fe9e99ef8c8","block_type":"box","text":"clear definition of, and distinction between, legal ownership and beneficial ownership under the PRC laws and there","page_number":82,"box":{"x":69,"y":355,"width":822,"height":11}},{"id":"aab1891d-5c5c-4edb-96bc-f24c3757947f","block_type":"box","text":"have been few cases involving a nominee account structure in the PRC courts. The exact nature and methods of","page_number":82,"box":{"x":69,"y":370,"width":802,"height":11}},{"id":"38339cf8-fbfe-47c8-9b11-044cfe6100ef","block_type":"box","text":"enforcement of the rights and interests of a Fund under the PRC laws is also uncertain. In the unlikely event that","page_number":82,"box":{"x":69,"y":385,"width":805,"height":11}},{"id":"a0690e7f-4698-42b5-b601-8bc81cda610d","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":82,"box":{"x":70,"y":400,"width":807,"height":11}},{"id":"f7d80eef-72d0-433a-8772-6eb93e6310d4","block_type":"box","text":"Securities may not be regarded as held for the beneficial ownership of a Fund or as part of the general assets of","page_number":82,"box":{"x":69,"y":415,"width":805,"height":11}},{"id":"0b7cad89-12fb-45cd-8e26-9e836f112e13","block_type":"box","text":"HKSCC available for general distribution to its creditors. Notwithstanding the fact that HKSCC does not claim","page_number":82,"box":{"x":70,"y":430,"width":774,"height":11}},{"id":"84389e48-9726-4bb9-a928-c7d59bedcd65","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":82,"box":{"x":70,"y":445,"width":816,"height":11}},{"id":"c3bade52-9bef-4ee6-8c8e-17d154907f85","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":82,"box":{"x":69,"y":460,"width":808,"height":12}},{"id":"6740d9f9-1be0-4c6d-a58a-605b4cd61477","block_type":"box","text":"when it handles corporate actions in respect of such SSE Securities or SZSE Securities. HKSCC monitors the","page_number":82,"box":{"x":68,"y":475,"width":779,"height":11}},{"id":"7b67714c-4e76-41e1-96a4-d3cf6166f186","block_type":"box","text":"corporate actions affecting SSE Securities and SZSE Securities and keeps participants of Central Clearing and","page_number":82,"box":{"x":69,"y":491,"width":788,"height":11}},{"id":"62eb1216-b902-4f44-ba24-147054a2fb49","block_type":"box","text":"Settlement System (“CCASS”) informed of all such corporate actions that require CCASS participants to take steps in","page_number":82,"box":{"x":69,"y":506,"width":839,"height":11}},{"id":"512a4dee-b27b-447b-9744-b1cfb39b8d00","block_type":"box","text":"order to participate in them. Investors may only exercise their voting rights by providing their voting instructions to","page_number":82,"box":{"x":69,"y":521,"width":811,"height":11}},{"id":"3ad26f75-fdb0-4f36-96b3-106a513936b9","block_type":"box","text":"HKSCC through participants of CCASS. All voting instructions from CCASS participants will be consolidated by","page_number":82,"box":{"x":70,"y":536,"width":783,"height":11}},{"id":"771c05e1-1da3-4462-a7d1-cb8f353dce4c","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":82,"box":{"x":70,"y":551,"width":826,"height":11}},{"id":"e645cb66-4b68-42da-b939-00cbfce999cf","block_type":"box","text":"result, a Fund may suffer difficulties or delays in enforcing its rights in SSE Securities or SZSE Securities.","page_number":82,"box":{"x":69,"y":566,"width":752,"height":11}},{"id":"c90fc17d-82e1-4296-a696-b58be496d33b","block_type":"box","text":"Hong Kong’s Investor Compensation Fund is established to pay compensation to investors of any nationality who","page_number":82,"box":{"x":102,"y":589,"width":804,"height":11}},{"id":"581d99f2-01ee-4824-922d-7b36e0567a6a","block_type":"box","text":"suffer pecuniary losses as a result of default of a licensed intermediary or authorized financial institution in relation","page_number":82,"box":{"x":69,"y":604,"width":826,"height":11}},{"id":"391ff68a-834a-43ac-96a2-633da9b7d406","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":82,"box":{"x":68,"y":619,"width":769,"height":11}},{"id":"b455a7b8-a8d9-4fff-9c22-b88b6f727042","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":82,"box":{"x":70,"y":634,"width":809,"height":11}},{"id":"eb6eed9f-3f0b-439d-8d87-50c8148b0246","block_type":"box","text":"SZSE and (ii) in respect of which an order for sale or purchase is permitted to be routed through the Northbound","page_number":82,"box":{"x":69,"y":649,"width":801,"height":12}},{"id":"0249c5b7-4f17-48b0-85d1-cb28a1e8ed84","block_type":"box","text":"Trading Link of a Stock Connect. On the other hand, since a Fund carries out Northbound trading through securities","page_number":82,"box":{"x":68,"y":664,"width":822,"height":12}},{"id":"2b6f281d-ee1b-457d-9d42-b36631da9e13","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":82,"box":{"x":69,"y":680,"width":829,"height":11}},{"id":"33d76913-0cbd-4e02-a5c7-ba9fd1de83b3","block_type":"box","text":"PRC.","page_number":82,"box":{"x":69,"y":695,"width":32,"height":9}},{"id":"b133d144-7e29-42ab-b8da-f13501c60f09","block_type":"box","text":"Market participants are able to participate in Stock Connects subject to meeting certain information technology","page_number":82,"box":{"x":102,"y":717,"width":796,"height":12}},{"id":"d447f008-9282-4ad0-8665-452d4c16f9a6","block_type":"box","text":"capability, risk management and other requirements as may be specified by the relevant exchange and/or clearing","page_number":82,"box":{"x":69,"y":732,"width":815,"height":12}},{"id":"beb4acee-80cc-4dba-b83f-9b9d7a0840e9","block_type":"box","text":"house. Further, the “connectivity” in Stock Connects requires routing of orders across the border of Hong Kong and","page_number":82,"box":{"x":69,"y":748,"width":822,"height":11}},{"id":"c724abea-16f4-47ba-95f2-c171b8f00f53","block_type":"box","text":"the PRC. This requires the development of new information technology systems on the part of SEHK and exchange","page_number":82,"box":{"x":68,"y":763,"width":818,"height":11}},{"id":"156fc2be-e490-4d50-98be-e3a703032827","block_type":"box","text":"participants. There is no assurance that the systems of SEHK and market participants will function properly or will","page_number":82,"box":{"x":70,"y":778,"width":813,"height":11}},{"id":"39810565-89b7-4351-9eda-e310c340d324","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":82,"box":{"x":69,"y":793,"width":827,"height":11}},{"id":"8dfebce7-8fdb-4a29-8b05-c0a2ebab5c4a","block_type":"box","text":"function properly, trading in Stock Connect Securities through Stock Connects could be disrupted.","page_number":82,"box":{"x":68,"y":808,"width":695,"height":11}},{"id":"d3256c1b-6579-411a-935d-6a13b225eeb2","block_type":"box","text":"The Shanghai-Hong Kong Stock Connect program launched in November 2014 and the Shenzhen-Hong Kong","page_number":82,"box":{"x":101,"y":831,"width":772,"height":11}},{"id":"e7f9031b-7eb0-416f-a7fb-3c3f9cca6fd5","block_type":"box","text":"Stock Connect program launched in December 2016. Each program does not have an extensive operating history.","page_number":82,"box":{"x":69,"y":846,"width":810,"height":11}},{"id":"dbb3d9a1-14ce-44c4-b294-46ec0b303462","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":82,"box":{"x":70,"y":861,"width":798,"height":11}},{"id":"8aa40ad9-9d64-4c36-abff-865a4e3bbfdf","block_type":"box","text":"Hong Kong in connection with operations, legal enforcement and cross-border trades under Stock Connects. In","page_number":82,"box":{"x":70,"y":876,"width":786,"height":11}},{"id":"92a4d886-9457-42d3-91b6-a71e410c181e","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":82,"box":{"x":69,"y":891,"width":821,"height":11}},{"id":"1345e879-57f9-4761-ae59-878ba4343111","block_type":"box","text":"as a result of such changes. Furthermore, the securities regimes and legal systems of China and Hong Kong differ","page_number":82,"box":{"x":69,"y":906,"width":819,"height":12}},{"id":"4ffba139-4766-4672-a55f-fb30f4006392","block_type":"box","text":"II-44","page_number":82,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d5c588b7-c509-44b5-81ce-436c3e130525","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":82,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"345893c9-3568-4144-851c-57442be2e920","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":83,"box":{"x":69,"y":45,"width":823,"height":11}},{"id":"fd6314d6-6a48-4b5f-8130-a1d452bc04d2","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":83,"box":{"x":68,"y":60,"width":814,"height":11}},{"id":"630c748c-9f4f-4069-83b2-0003e4205bbf","block_type":"box","text":"achieve its investment objective may be adversely affected. In addition, a Fund’s investments in Stock Connect","page_number":83,"box":{"x":69,"y":75,"width":793,"height":11}},{"id":"ad1a9e93-dc85-4c49-a788-be1e31a30745","block_type":"box","text":"Securities through Stock Connects are generally subject to Chinese securities regulations and listing rules, among","page_number":83,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"21c4e28f-ed66-4c65-be46-c8ed26cb6678","block_type":"box","text":"other restrictions. Further, different fees, costs and taxes are imposed on foreign investors acquiring Stock Connect","page_number":83,"box":{"x":69,"y":105,"width":828,"height":11}},{"id":"dee00dce-0889-4a9e-8087-8ebffc6b9c54","block_type":"box","text":"Securities through Stock Connects, and these fees, costs and taxes may be higher than comparable fees, costs and","page_number":83,"box":{"x":69,"y":120,"width":831,"height":12}},{"id":"8ddb380d-08a9-4508-a558-f057e08350ab","block_type":"box","text":"taxes imposed on owners of other securities providing similar investment exposure.","page_number":83,"box":{"x":68,"y":135,"width":596,"height":12}},{"id":"ce21c235-1dcb-4e34-9e3e-465d321a421a","block_type":"box","text":"Suspension Risk.","page_number":83,"box":{"x":102,"y":158,"width":122,"height":11}},{"id":"73635bf7-9be1-4cd5-8bd4-8022c4394934","block_type":"box","text":"SSE Securities and SZSE Securities may only be bought from, or sold to, a Fund at times when","page_number":83,"box":{"x":231,"y":158,"width":675,"height":11}},{"id":"39493a7a-d982-48e3-bcb2-c555f32c832b","block_type":"box","text":"the relevant SSE Securities and SZSE Securities may be sold or purchased on the relevant Chinese stock exchange.","page_number":83,"box":{"x":68,"y":173,"width":829,"height":11}},{"id":"559965cf-a1ad-4505-b86f-8fe20fec425b","block_type":"box","text":"The SSE Securities and SZSE Securities markets have a higher propensity for trading suspensions than many other","page_number":83,"box":{"x":68,"y":188,"width":823,"height":12}},{"id":"6dd84957-732a-40ef-8ff3-bbd9f8fc5fee","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":83,"box":{"x":68,"y":203,"width":831,"height":12}},{"id":"4f72c03e-488f-44a2-8365-dbd32973bc4c","block_type":"box","text":"SZSE Securities purchased on the Stock Connects if necessary for ensuring an orderly and fair market and ensuring","page_number":83,"box":{"x":69,"y":218,"width":828,"height":12}},{"id":"f00cf4e6-4ac8-4864-958d-95b1a8d3f054","block_type":"box","text":"that risks are managed prudently. Consent from the relevant regulator would be sought before a suspension of","page_number":83,"box":{"x":68,"y":234,"width":791,"height":11}},{"id":"a6c46963-794c-4662-b1aa-ba7542d26787","block_type":"box","text":"Northbound trading is triggered. The relevant PRC government authority may also impose “circuit breakers” and other","page_number":83,"box":{"x":70,"y":249,"width":837,"height":11}},{"id":"e55f8d4a-f22f-42df-9ed2-7b8d3920eda3","block_type":"box","text":"measures to halt or suspend Northbound trading. Where a suspension in the Northbound trading through Stock","page_number":83,"box":{"x":69,"y":264,"width":796,"height":11}},{"id":"1eebc0a1-24b5-4f09-b3dc-dd61adb876d6","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":83,"box":{"x":69,"y":279,"width":820,"height":11}},{"id":"4d5bb794-d978-4796-a11a-5c286e776c7f","block_type":"box","text":"certain stocks could lead to greater market execution risk and costs for a Fund. The SSE and SZSE currently apply a","page_number":83,"box":{"x":69,"y":294,"width":829,"height":11}},{"id":"d50e10a8-4f92-486c-b371-c4094f8dcf29","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":83,"box":{"x":69,"y":309,"width":778,"height":11}},{"id":"3a41eea6-6154-43da-b931-e3f33a797c5b","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":83,"box":{"x":69,"y":324,"width":815,"height":12}},{"id":"1b23b1c0-62d6-426a-a68c-a22dbd52ae06","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":83,"box":{"x":69,"y":340,"width":833,"height":11}},{"id":"c3fbabf8-ad48-415b-bf7f-3de226d05cbd","block_type":"box","text":"exist for any particular SSE Security or SZSE Security or for any particular time.","page_number":83,"box":{"x":69,"y":355,"width":563,"height":11}},{"id":"835b2849-88af-4966-ad5b-098ee0e407f6","block_type":"box","text":"Risk of Investing in the China Interbank Bond Market through Bond Connect.","page_number":83,"box":{"x":102,"y":377,"width":542,"height":12}},{"id":"a07a3586-2222-4a8f-9184-6efaada04956","block_type":"box","text":"A Fund may invest directly in the","page_number":83,"box":{"x":650,"y":377,"width":230,"height":11}},{"id":"95aa0607-a50f-46df-a08d-c09bb210abf0","block_type":"box","text":"domestic bond market in the PRC (the “China Interbank Bond Market”) through the northbound trading of Bond","page_number":83,"box":{"x":69,"y":392,"width":791,"height":12}},{"id":"300e882a-6651-41f2-8ffb-e2f7c316effb","block_type":"box","text":"Connect (“Bond Connect”). Bond Connect is an initiative launched in July 2017 for mutual bond market access","page_number":83,"box":{"x":69,"y":407,"width":790,"height":12}},{"id":"ade5334a-c2ae-4dc8-a30d-4e040d79b567","block_type":"box","text":"between the PRC and Hong Kong, established by the China Foreign Exchange Trade System & National Interbank","page_number":83,"box":{"x":69,"y":423,"width":803,"height":11}},{"id":"f780317c-a5b5-41cd-b055-41fe8832a3b6","block_type":"box","text":"Funding Centre (“CFETS”), China Central Depository & Clearing Co., Ltd (“CDCC”), Shanghai Clearing House (“SCH”),","page_number":83,"box":{"x":70,"y":438,"width":832,"height":11}},{"id":"115c585b-f8d4-4c2c-a98d-946d3ccbbd81","block_type":"box","text":"Hong Kong Exchanges and Clearing Limited (“HKEX”) and Central Moneymarkets Unit (“CMU”). Under the prevailing","page_number":83,"box":{"x":70,"y":453,"width":821,"height":11}},{"id":"f3304af5-187e-463c-b628-cf21fcfa25ef","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":83,"box":{"x":69,"y":468,"width":825,"height":11}},{"id":"a940a451-68e6-419b-9ba5-d87ac068f080","block_type":"box","text":"Bond Market through Bond Connect. Eligible foreign investors may submit trade requests for bonds circulated in the","page_number":83,"box":{"x":70,"y":483,"width":825,"height":11}},{"id":"0d43ef7f-85b0-4e0f-a701-372d8523ea95","block_type":"box","text":"China Interbank Bond Market through offshore electronic bond trading platforms (such as Tradeweb), which will in","page_number":83,"box":{"x":69,"y":498,"width":809,"height":11}},{"id":"47d9246a-720a-4982-95f6-9e638a9e9fc0","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":83,"box":{"x":68,"y":513,"width":786,"height":11}},{"id":"ac248ef3-2990-4ce9-ae49-06e050c0c8ea","block_type":"box","text":"approved onshore dealers (including market makers and others engaged in the market making business) in the PRC.","page_number":83,"box":{"x":69,"y":529,"width":830,"height":11}},{"id":"df71c657-8913-4b64-9199-5a8dcbe6dc9c","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":83,"box":{"x":68,"y":543,"width":788,"height":12}},{"id":"01b267b5-d7b5-43ca-a78b-f86a25346a58","block_type":"box","text":"responses to those eligible foreign investors through the same offshore electronic bond trading platforms. Once the","page_number":83,"box":{"x":69,"y":559,"width":827,"height":11}},{"id":"8d5ae03c-6dab-44a6-b21d-a88cb605f080","block_type":"box","text":"eligible foreign investor accepts the quotation, the trade is concluded on CFETS.","page_number":83,"box":{"x":69,"y":574,"width":570,"height":11}},{"id":"f0b7926b-87d4-42e7-b9f8-f37e44883973","block_type":"box","text":"The settlement and custody of bonds traded in the China Interbank Bond Market under Bond Connect will be","page_number":83,"box":{"x":101,"y":596,"width":773,"height":12}},{"id":"23d1b417-26c5-4c78-8671-4429d49c7316","block_type":"box","text":"effected through the settlement and custody link between CMU, as an offshore custody agent, and CDCC and SCH,","page_number":83,"box":{"x":69,"y":612,"width":823,"height":11}},{"id":"2bf18d1b-6b7f-4474-82ff-d64b1a67d4f0","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":83,"box":{"x":69,"y":627,"width":832,"height":11}},{"id":"8ec88994-cebf-44fb-ac43-d36f3394ba42","block_type":"box","text":"settlement of confirmed trades onshore and CMU will process bond settlement instructions from CMU members on","page_number":83,"box":{"x":69,"y":642,"width":822,"height":11}},{"id":"6e99144e-4c03-43e7-bd08-676c85195f2f","block_type":"box","text":"behalf of eligible foreign investors in accordance with its relevant rules. Since the introduction in August 2018 of","page_number":83,"box":{"x":69,"y":657,"width":804,"height":11}},{"id":"ab2bce3d-6ac7-4391-981d-647907bb292d","block_type":"box","text":"delivery versus payment (DVP) settlement in respect of Bond Connect, the movement of cash and securities is","page_number":83,"box":{"x":69,"y":672,"width":787,"height":11}},{"id":"f4bc9ecd-e11b-46ce-97ac-6d18ecbaa761","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":83,"box":{"x":69,"y":687,"width":788,"height":11}},{"id":"2bb30b7c-fd6c-4993-a644-3f5389dfedf1","block_type":"box","text":"offshore custody agent recognized by the Hong Kong Monetary Authority, will open omnibus nominee accounts with","page_number":83,"box":{"x":69,"y":702,"width":820,"height":12}},{"id":"4641f4d3-784f-4270-ae61-e7b19afd9e0b","block_type":"box","text":"the onshore custody agent recognized by the People’s Bank of China (","page_number":83,"box":{"x":68,"y":717,"width":500,"height":12}},{"id":"cfc09d4d-9a47-453a-ac1a-6ef11cf5c3c6","block_type":"box","text":"i.e.","page_number":83,"box":{"x":570,"y":718,"width":20,"height":8}},{"id":"346b0ecc-1891-4743-bc6b-3160be09b763","block_type":"box","text":", CDCC and SCH). All bonds traded by","page_number":83,"box":{"x":593,"y":718,"width":267,"height":11}},{"id":"d725c3c2-2e55-40f8-a5be-3a7a72ffc7be","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":83,"box":{"x":69,"y":732,"width":832,"height":12}},{"id":"d8a5892d-d093-4599-a595-e8b2f8f48789","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":83,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"25ad9b85-7a23-43e6-b897-5a66f99f8e89","block_type":"box","text":"CDCC or SCH default, CMU’s liabilities in Bond Connect bonds under its market contracts with clearing participants","page_number":83,"box":{"x":69,"y":763,"width":822,"height":11}},{"id":"1ed119b7-0871-45d5-ae29-c804e4026aa2","block_type":"box","text":"will be limited to assisting clearing participants in pursuing their claims against CDCC or SCH. The Fund may suffer","page_number":83,"box":{"x":68,"y":778,"width":822,"height":11}},{"id":"ff687042-1e62-4a43-88a1-9d1ab24f9c64","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":83,"box":{"x":69,"y":793,"width":793,"height":11}},{"id":"cff4ec13-c486-4e55-87a7-540066d02f52","block_type":"box","text":"filings, registration with the People’s Bank of China, and account opening have to be carried out by third parties,","page_number":83,"box":{"x":68,"y":808,"width":802,"height":11}},{"id":"7728837f-e762-4298-b395-1589ab8095af","block_type":"box","text":"including CMU, CDCC, SCH, and CFETS, a Fund is subject to the risks of default or errors on the part of such third","page_number":83,"box":{"x":70,"y":823,"width":812,"height":12}},{"id":"1ab4c7b2-cf1a-492a-a3d5-eeee84bdf443","block_type":"box","text":"parties.","page_number":83,"box":{"x":70,"y":839,"width":52,"height":10}},{"id":"f0ada31c-0667-4d28-9ac5-6129d492385d","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":83,"box":{"x":101,"y":861,"width":799,"height":11}},{"id":"c60b855c-9e4d-4203-981e-5a6b5b85913e","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":83,"box":{"x":70,"y":876,"width":785,"height":11}},{"id":"df5b6383-7294-43ce-9d58-89e29decd665","block_type":"box","text":"distinction between, legal ownership and beneficial ownership under PRC law and there have been few cases","page_number":83,"box":{"x":69,"y":891,"width":776,"height":12}},{"id":"ce96aaab-e4c5-4b1b-b953-8048da19173e","block_type":"box","text":"II-45","page_number":83,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e3699992-86d8-40a3-9222-45d7c40f569b","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":83,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"bdc63cf7-9ace-41c1-b466-b65168cf2248","block_type":"box","text":"involving a nominee account structure in the PRC courts. The exact nature and methods of enforcement of the rights","page_number":84,"box":{"x":70,"y":45,"width":830,"height":11}},{"id":"c09cf9c2-8994-4c80-9cdf-3a47a6e8b0a9","block_type":"box","text":"and interests of a Fund under PRC law are also uncertain.","page_number":84,"box":{"x":69,"y":60,"width":412,"height":9}},{"id":"82cfd5b4-abcb-45ce-b739-01de04be2e38","block_type":"box","text":"Market volatility and potential lack of liquidity due to low trading volume of certain bonds in the China Interbank","page_number":84,"box":{"x":102,"y":82,"width":793,"height":12}},{"id":"8a87953f-cbd0-4daa-90a6-fcfdffd7fbc7","block_type":"box","text":"Bond Market may result in prices of certain bonds traded on such market fluctuating significantly. A Fund investing in","page_number":84,"box":{"x":70,"y":98,"width":832,"height":11}},{"id":"d8f94488-a23b-4381-b848-e1879d2d97a8","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":84,"box":{"x":69,"y":113,"width":821,"height":11}},{"id":"27415a85-202f-43ec-b66a-6de51926ca22","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":84,"box":{"x":69,"y":128,"width":836,"height":11}},{"id":"b6ba8dc3-e928-4772-87cf-4db443ab7c9c","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":84,"box":{"x":68,"y":143,"width":798,"height":11}},{"id":"ce8c4bb9-405b-4590-adae-47d16881ee18","block_type":"box","text":"Fund’s ability to acquire or dispose of such securities at their expected prices.","page_number":84,"box":{"x":70,"y":158,"width":556,"height":11}},{"id":"92f41c7a-0655-4dd4-8575-375e0062b562","block_type":"box","text":"Investing in the China Interbank Bond Market through Bond Connect is also subject to regulatory risks. The","page_number":84,"box":{"x":102,"y":181,"width":762,"height":11}},{"id":"ca5351b2-45f9-471d-b4a6-dec9b455e0db","block_type":"box","text":"relevant rules and regulations are subject to change, which may have potential retrospective effect, and there can be","page_number":84,"box":{"x":69,"y":196,"width":835,"height":11}},{"id":"4f9cfb90-03f5-464c-976d-17348408c8bc","block_type":"box","text":"no assurance that Bond Connect will not be discontinued or abolished. Furthermore, the securities regimes and legal","page_number":84,"box":{"x":69,"y":211,"width":835,"height":11}},{"id":"89891b65-13a9-48da-bc9a-b3e4d7495c34","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":84,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"f2339c9a-cdcd-4f3a-b1a4-e44f090f2ab1","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":84,"box":{"x":68,"y":241,"width":840,"height":11}},{"id":"99bdd1fd-5db7-44de-93d9-bb169df9345b","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":84,"box":{"x":68,"y":256,"width":826,"height":11}},{"id":"0702ceda-2ec2-4c52-a3d1-b2a1478bae05","block_type":"box","text":"to achieve its investment objective will be negatively affected and, after exhausting other trading alternatives, the","page_number":84,"box":{"x":68,"y":271,"width":808,"height":12}},{"id":"b1678725-95c8-48d1-80e8-6a24e9d7709b","block_type":"box","text":"Fund may suffer substantial losses as a result. Further, if Bond Connect is not operating, a Fund may not be able to","page_number":84,"box":{"x":70,"y":286,"width":826,"height":12}},{"id":"a61480ab-db20-48c5-a8fd-446960356167","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":84,"box":{"x":69,"y":302,"width":789,"height":11}},{"id":"f97c4417-5a76-438c-8849-f5feab81693c","block_type":"box","text":"performance.","page_number":84,"box":{"x":70,"y":317,"width":93,"height":11}},{"id":"f6fe063a-63c0-4243-91b6-08bf977620cd","block_type":"box","text":"Trading through Bond Connect is performed through newly developed trading platforms and operational systems.","page_number":84,"box":{"x":101,"y":339,"width":803,"height":12}},{"id":"ccd4a8fd-369c-4d5e-b0da-86b1e0ce5c66","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":84,"box":{"x":68,"y":355,"width":776,"height":11}},{"id":"51acbad1-3a14-4590-92aa-67ba948473bf","block_type":"box","text":"developments in the market. In the event that the relevant systems fail to function properly, trading through Bond","page_number":84,"box":{"x":69,"y":370,"width":806,"height":11}},{"id":"106cb327-222f-4e3a-ad30-9c683d316f99","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":84,"box":{"x":69,"y":385,"width":791,"height":11}},{"id":"7a963776-6675-495f-8ac3-80da7cc48b5b","block_type":"box","text":"strategy) may therefore be adversely affected. In addition, where a Fund invests in the China Interbank Bond Market","page_number":84,"box":{"x":69,"y":400,"width":827,"height":11}},{"id":"c4350792-cc04-4c6d-81c1-11986ceaefca","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":84,"box":{"x":68,"y":415,"width":827,"height":11}},{"id":"45a70890-c677-48a0-b544-58ff239e59d3","block_type":"box","text":"Bond Connect trades are settled in Chinese currency, the RMB, which is currently restricted and not freely","page_number":84,"box":{"x":102,"y":438,"width":755,"height":11}},{"id":"20d1be6c-fc2e-4987-8b7a-1f82c1bacc86","block_type":"box","text":"convertible. As a result, a Fund will be exposed to currency risk, and it cannot be guaranteed that investors will have","page_number":84,"box":{"x":69,"y":453,"width":830,"height":11}},{"id":"3f8d90b1-efcc-475f-838a-1d6f0df5ff1e","block_type":"box","text":"timely access to a reliable supply of RMB.","page_number":84,"box":{"x":68,"y":468,"width":298,"height":11}},{"id":"68dc2b7e-aacb-4a2b-8c23-392afeef850d","block_type":"box","text":"Tax Risk – Withholding Income Tax Risk","page_number":84,"box":{"x":103,"y":491,"width":277,"height":11}},{"id":"3887c6c2-44a2-491b-8224-dbd459b61c72","block_type":"box","text":".","page_number":84,"box":{"x":381,"y":498,"width":2,"height":2}},{"id":"91852f3f-4d32-4499-9569-594d083915b4","block_type":"box","text":"According to PRC tax regulations, a 10% withholding income tax is imposed on PRC sourced dividends and","page_number":84,"box":{"x":101,"y":513,"width":758,"height":12}},{"id":"4eef65a5-37be-4d06-a54f-e3499d6f5544","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":84,"box":{"x":70,"y":528,"width":828,"height":12}},{"id":"a63b7175-3b55-4847-b366-0a38f638e8b9","block_type":"box","text":"applicable tax treaty. From a technical perspective, withholding income tax is also applicable to capital gains realized","page_number":84,"box":{"x":69,"y":544,"width":831,"height":11}},{"id":"2445fc9e-47a8-4ce1-83ad-6a5c085c99f4","block_type":"box","text":"by foreign investors on the disposal of PRC equity interests.","page_number":84,"box":{"x":69,"y":559,"width":425,"height":11}},{"id":"887f6986-c0a2-4c36-8137-15d4a88b3199","block_type":"box","text":"There are however certain tax exemptions available, some temporary in nature, highlighted below.","page_number":84,"box":{"x":101,"y":582,"width":697,"height":11}},{"id":"4332dc9e-8381-4e20-9f18-fc461321cbbd","block_type":"box","text":"On November 14, 2014, the Ministry of Finance (“MoF”), China Securities Regulatory Commission and the State","page_number":84,"box":{"x":102,"y":604,"width":803,"height":11}},{"id":"89353ee8-accc-47ea-8f58-8eb662257f33","block_type":"box","text":"Taxation Administration (“STA”), acting with State Council’s approval, jointly released Circular 79, which temporarily","page_number":84,"box":{"x":68,"y":619,"width":822,"height":11}},{"id":"77ed150e-3341-4e53-bbdf-0a0ac1adc27d","block_type":"box","text":"exempts Qualified Foreign Institutional Investors (“QFIIs”) and Renminbi Qualified Foreign Institutional Investors","page_number":84,"box":{"x":69,"y":634,"width":794,"height":12}},{"id":"fd9a73a0-1cfd-4da7-b5a6-6a6dba0bf854","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":84,"box":{"x":69,"y":649,"width":812,"height":12}},{"id":"8d08f155-5f52-4eab-9621-db3ea5fc8cef","block_type":"box","text":"after November 17, 2014. Subsequently, Circulars 81 and 127 were issued to temporarily exempt tax on capital","page_number":84,"box":{"x":69,"y":664,"width":800,"height":12}},{"id":"03fa4797-5636-4a6c-b554-b6aaa4c767d6","block_type":"box","text":"gains derived from trading of equity securities of companies domiciled in the PRC that trade on Chinese stock","page_number":84,"box":{"x":68,"y":680,"width":783,"height":11}},{"id":"462b71e0-ae47-45a3-842d-996a6057ce27","block_type":"box","text":"exchanges (“A-Shares”) through the Shanghai-Hong Kong Stock Connect program or the Shenzhen-Hong Kong Stock","page_number":84,"box":{"x":69,"y":695,"width":825,"height":11}},{"id":"e7b95f79-ffb8-488d-bf30-7766401b1c5e","block_type":"box","text":"Connect program, as applicable (each, a “Stock Connect” and collectively, “Stock Connects”). The duration of the","page_number":84,"box":{"x":69,"y":710,"width":809,"height":11}},{"id":"5d0e7443-f168-4f63-9f3e-b97dc1dae3e9","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":84,"box":{"x":68,"y":725,"width":818,"height":11}},{"id":"77a65ab8-7ead-4cb4-97d3-4d903332c861","block_type":"box","text":"without notice.","page_number":84,"box":{"x":68,"y":740,"width":103,"height":9}},{"id":"95e4a8c1-5041-4ee3-af73-0c9e796b8686","block_type":"box","text":"On November 22, 2018, the MoF and STA jointly issued Circular 108 which states that foreign institutional","page_number":84,"box":{"x":102,"y":763,"width":759,"height":11}},{"id":"c5781ab3-e4e5-4706-80b9-53edef651fb2","block_type":"box","text":"investors are temporarily exempt from withholding income tax with respect to interest income on bonds derived from","page_number":84,"box":{"x":70,"y":778,"width":827,"height":11}},{"id":"7b77f686-4436-4a89-b2b8-230a8eb1bc52","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":84,"box":{"x":68,"y":793,"width":798,"height":10}},{"id":"46d81260-37e6-43ce-8d42-bf902413893d","block_type":"box","text":"issued Public Notice 34 to extend the temporary exemption from November 7, 2021 to December 31, 2025. On","page_number":84,"box":{"x":70,"y":808,"width":798,"height":11}},{"id":"a815edaa-b222-4b17-a47d-6ac7a1eeca32","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":84,"box":{"x":69,"y":823,"width":792,"height":12}},{"id":"3e869064-52a0-409c-8e41-fad445761e63","block_type":"box","text":"December 31, 2027.","page_number":84,"box":{"x":70,"y":838,"width":147,"height":11}},{"id":"aaebcee1-4e16-4546-a3b8-55a30ed234e2","block_type":"box","text":"Value Added Tax (“VAT”) Risk —","page_number":84,"box":{"x":103,"y":861,"width":225,"height":11}},{"id":"95c6dfd8-2b93-4803-bc6b-90a52b687069","block_type":"box","text":"From May 1, 2016, VAT applies to certain income derived by the Fund, including","page_number":84,"box":{"x":333,"y":861,"width":569,"height":11}},{"id":"bd23f38f-a35f-4e54-8384-df1c747893bf","block_type":"box","text":"PRC sourced interest income on non-government bonds and trading gains.","page_number":84,"box":{"x":69,"y":876,"width":528,"height":11}},{"id":"83d7f176-7194-4a1e-a2c5-bb49ad97c397","block_type":"box","text":"There are however certain tax exemptions available, some temporary in nature, highlighted below.","page_number":84,"box":{"x":101,"y":899,"width":697,"height":11}},{"id":"7de12f23-314c-4013-8071-29c19856bd9e","block_type":"box","text":"II-46","page_number":84,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c439a102-7bbc-4502-a839-7cc6937cc110","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":84,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7ff87c11-4888-4842-a320-afbff36f29bd","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":85,"box":{"x":101,"y":45,"width":789,"height":11}},{"id":"03c513fa-692c-4d8c-8567-61632492a43a","block_type":"box","text":"Stock Connects and debt securities traded in the China Interbank Bond Market.","page_number":85,"box":{"x":69,"y":60,"width":565,"height":9}},{"id":"fea1d52d-5bb3-4b4a-9fdd-76e3d3fc6951","block_type":"box","text":"On November 7, 2018, the MoF and STA jointly issued Circular 108 which states that foreign institutional","page_number":85,"box":{"x":102,"y":82,"width":749,"height":12}},{"id":"69533d53-0bd0-439f-be01-58f8da92765b","block_type":"box","text":"investors are temporarily exempt from VAT with respect to interest income on bonds derived from the PRC bond","page_number":85,"box":{"x":70,"y":98,"width":791,"height":11}},{"id":"b86883be-0780-43d1-9d72-752663b1a8d4","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":85,"box":{"x":69,"y":113,"width":840,"height":11}},{"id":"a4857ed8-34b9-4a35-b59f-196d68f76ae6","block_type":"box","text":"Notice 34 to extend the temporary exemption from November 7, 2021 to December 31, 2025. However, on","page_number":85,"box":{"x":70,"y":128,"width":766,"height":11}},{"id":"ff6bd7c1-aff4-4cae-83fb-083352fd7668","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":85,"box":{"x":69,"y":143,"width":826,"height":11}},{"id":"6d2fe714-531d-4117-a3e0-7bcff24de59c","block_type":"box","text":"interest income derived from treasury bonds, local government bonds and financial bonds issued on or after","page_number":85,"box":{"x":70,"y":158,"width":772,"height":11}},{"id":"d18aedb4-6b6c-4a6e-ba87-e532a89560cb","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":85,"box":{"x":68,"y":173,"width":840,"height":11}},{"id":"63d3c2d8-cc78-4dd7-8a87-7a8bf9290184","block_type":"box","text":"for foreign institutional investors. This exemption was extended through December 31, 2027.","page_number":85,"box":{"x":68,"y":188,"width":665,"height":12}},{"id":"b7eef630-a9a4-4f70-a2ff-ff58e0c6d055","block_type":"box","text":"Any changes in PRC tax law, future clarifications thereof, and/or subsequent retroactive enforcement by the PRC","page_number":85,"box":{"x":101,"y":211,"width":801,"height":11}},{"id":"d3d3e725-cf84-4bd6-b4c8-f79a89f70391","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":85,"box":{"x":68,"y":226,"width":821,"height":11}},{"id":"dbd1d01d-c45a-4a2e-9de9-e892ceb60f32","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":85,"box":{"x":68,"y":241,"width":808,"height":11}},{"id":"41e112be-8b0a-4cd2-be06-2fac16baa3ec","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":85,"box":{"x":69,"y":256,"width":810,"height":12}},{"id":"30f7a543-1b3a-4ba2-9fdc-cbe759f581b6","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":85,"box":{"x":68,"y":272,"width":829,"height":11}},{"id":"fe25b223-f80d-40ea-8f34-8c41a50c5850","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":85,"box":{"x":69,"y":287,"width":819,"height":11}},{"id":"5f39cbc6-53c4-4c52-a06d-588a9917be01","block_type":"box","text":"advantaged or disadvantaged depending on when the investors purchased and/or sold the shares of the Fund. There","page_number":85,"box":{"x":69,"y":302,"width":833,"height":11}},{"id":"815819eb-ca95-4eb6-886e-0074afdf900d","block_type":"box","text":"will be no retrospective restatement of the Fund’s net asset value.","page_number":85,"box":{"x":68,"y":317,"width":474,"height":11}},{"id":"a14319b2-16ff-4be0-8fc7-e6a7201f20e5","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":85,"box":{"x":102,"y":339,"width":777,"height":12}},{"id":"94272b3d-6236-4732-b454-703e6cd0441f","block_type":"box","text":"time, make a provision for potential tax liabilities if in its opinion such provision is warranted or as further clarified by","page_number":85,"box":{"x":68,"y":355,"width":836,"height":11}},{"id":"c0eb1895-86d4-41df-b0ed-bdac386976d0","block_type":"box","text":"the PRC in notifications.","page_number":85,"box":{"x":68,"y":370,"width":171,"height":9}},{"id":"0eacc8ba-120d-4867-82b1-eda3664626b3","block_type":"box","text":"Investment in Other Investment Companies.","page_number":85,"box":{"x":102,"y":392,"width":320,"height":11}},{"id":"157cb36b-8d72-4837-bfcf-3b3b4152f8ad","block_type":"box","text":"Each Fund may, subject to applicable law, invest in other","page_number":85,"box":{"x":429,"y":393,"width":402,"height":11}},{"id":"af636a13-5d65-467a-8b87-593730a5bfb1","block_type":"box","text":"investment companies (including investment companies managed by BlackRock and its affiliates), including money","page_number":85,"box":{"x":70,"y":407,"width":818,"height":12}},{"id":"d42d7f6e-33be-49fd-92f9-bfb47b3d0c14","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":85,"box":{"x":69,"y":423,"width":797,"height":11}},{"id":"3369390e-686e-4f16-a070-27d21495734d","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":85,"box":{"x":70,"y":438,"width":822,"height":11}},{"id":"6a9bc168-5425-49ef-9d7e-e6f5eb5fe294","block_type":"box","text":"in securities of other investment companies (measured at the time of such investment). In addition, under Section","page_number":85,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"3580800a-746a-41a5-a1b3-6242c67b59e7","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":85,"box":{"x":70,"y":468,"width":793,"height":11}},{"id":"be262910-0878-4a81-a905-b51dc71ce05f","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":85,"box":{"x":69,"y":483,"width":796,"height":11}},{"id":"613610be-910e-470f-a808-85cfea5a04d3","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":85,"box":{"x":69,"y":498,"width":837,"height":11}},{"id":"59b890a1-0cae-4357-a53e-c0197d62957b","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":85,"box":{"x":68,"y":513,"width":812,"height":11}},{"id":"c8ad772f-f723-4b96-82c2-e3a5e4d78ab4","block_type":"box","text":"restrict a Feeder Fund from investing all of its assets in shares of its Master Portfolio.) In addition to the restrictions","page_number":85,"box":{"x":69,"y":528,"width":829,"height":12}},{"id":"93458be1-c749-48f8-a8a6-b52289a0f937","block_type":"box","text":"on investing in other investment companies discussed above, under Section 12(d)(1)(C) of the Investment Company","page_number":85,"box":{"x":69,"y":543,"width":827,"height":12}},{"id":"6957f4ff-2194-49be-83cb-9a2d9e4f223b","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":85,"box":{"x":68,"y":559,"width":821,"height":11}},{"id":"41df5139-1573-4bb4-8c98-4dcc84c1cbe2","block_type":"box","text":"and other BlackRock-advised investment companies to own more than 10% of the total outstanding voting stock of","page_number":85,"box":{"x":69,"y":574,"width":817,"height":11}},{"id":"ef1d3d69-3e5a-4c21-ac9b-e216ee4c756e","block_type":"box","text":"such closed-end investment company. Pursuant to Section 12(d)(1)(G) of the Investment Company Act, these","page_number":85,"box":{"x":69,"y":589,"width":776,"height":11}},{"id":"f9e0aa9d-5f17-4ab3-b735-0053eb394faf","block_type":"box","text":"percentage limitations do not apply to investments in affiliated investment companies, including ETFs, subject to","page_number":85,"box":{"x":70,"y":604,"width":802,"height":11}},{"id":"98fed068-651a-4125-8153-e90474590dc5","block_type":"box","text":"certain conditions. In addition, a Fund may be able to rely on certain rules under the Investment Company Act to","page_number":85,"box":{"x":69,"y":619,"width":801,"height":11}},{"id":"f3c2d75b-bc66-4220-85cd-e6d622fefc35","block_type":"box","text":"invest in shares of money market funds or other investment companies beyond the statutory limits noted above, but","page_number":85,"box":{"x":70,"y":634,"width":829,"height":11}},{"id":"eb0e5baf-7af4-433b-9dbb-39b4103e4165","block_type":"box","text":"subject to certain conditions.","page_number":85,"box":{"x":69,"y":650,"width":206,"height":10}},{"id":"146246c2-19c1-40de-a2c8-080eb5da7454","block_type":"box","text":"As with other investments, investments in other investment companies are subject to market and selection risk.","page_number":85,"box":{"x":101,"y":672,"width":799,"height":11}},{"id":"f7cc9240-bd31-4ff1-bc6d-062fbc1da68e","block_type":"box","text":"Shares of investment companies, such as closed-end fund investment companies, that trade on an exchange","page_number":85,"box":{"x":102,"y":695,"width":779,"height":11}},{"id":"da382963-a3df-4f82-96c7-990a26955912","block_type":"box","text":"may at times be acquired at market prices representing premiums to their NAVs. In addition, investment companies","page_number":85,"box":{"x":69,"y":710,"width":824,"height":11}},{"id":"bf05e35e-bc0a-4e11-9a4a-7d293133353f","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":85,"box":{"x":69,"y":725,"width":836,"height":11}},{"id":"c325c56a-824a-4c46-aa5d-a388c4ef9e79","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":85,"box":{"x":68,"y":740,"width":839,"height":11}},{"id":"6ce85f0a-e7bc-4d6d-b92c-8153aadf1ca4","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":85,"box":{"x":68,"y":755,"width":806,"height":11}},{"id":"df945fb2-5a60-4392-a559-9f9a5423c1d0","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":85,"box":{"x":68,"y":771,"width":810,"height":10}},{"id":"874a8696-ae28-424d-b31c-2dc08a602363","block_type":"box","text":"loss.","page_number":85,"box":{"x":70,"y":786,"width":31,"height":8}},{"id":"eeb8b60d-513e-4de0-9ff7-3b845d3e0860","block_type":"box","text":"In addition, if a Fund acquires shares in investment companies, including affiliated investment companies,","page_number":85,"box":{"x":102,"y":808,"width":758,"height":11}},{"id":"3adadad9-8e75-4a51-a98c-7923035fd8ad","block_type":"box","text":"shareholders would bear both their proportionate share of expenses in the Fund and, indirectly, the expenses of such","page_number":85,"box":{"x":69,"y":823,"width":837,"height":11}},{"id":"a95f895c-085d-4c07-8d30-6eb4a7725c09","block_type":"box","text":"investment companies. Such expenses, both at the Fund level and acquired investment company level, would include","page_number":85,"box":{"x":70,"y":838,"width":835,"height":11}},{"id":"f6d9b78d-8698-4a36-a88b-cefa65599120","block_type":"box","text":"management and advisory fees, unless such fees have been waived by BlackRock. Please see the relevant Fund’s","page_number":85,"box":{"x":69,"y":853,"width":816,"height":12}},{"id":"24ec432b-4555-4571-adf5-241e8b727de4","block_type":"box","text":"Prospectus to determine whether any such management and advisory fees have been waived by BlackRock.","page_number":85,"box":{"x":69,"y":869,"width":768,"height":11}},{"id":"7275e442-7ba6-4269-80dd-62c0140d31e6","block_type":"box","text":"Investments by a Fund in wholly owned investment entities created under the laws of certain countries will not be","page_number":85,"box":{"x":70,"y":884,"width":807,"height":11}},{"id":"aac6ec3f-73dd-419c-8c48-d00005e3d9c1","block_type":"box","text":"deemed an investment in other investment companies. Pursuant to guidance issued by the staff of the Commission,","page_number":85,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"0a1c243c-d721-47e0-9343-e860dd1396e4","block_type":"box","text":"II-47","page_number":85,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"9ca71060-d3a6-4686-9d14-658c04f63f8d","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":85,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c2908706-ed62-482f-a05f-6cea38e95749","block_type":"box","text":"fees and expenses of money market funds used for the investment of cash collateral received in connection with","page_number":86,"box":{"x":68,"y":45,"width":804,"height":11}},{"id":"d4b7fe83-b7a8-44eb-a296-da5649ff6760","block_type":"box","text":"loans of Fund securities are not treated as “acquired fund fees and expenses,” which are fees and expenses","page_number":86,"box":{"x":70,"y":60,"width":778,"height":11}},{"id":"bf6946b1-090d-485e-92ea-bec71ea57a9c","block_type":"box","text":"charged by other investment companies and pooled investment vehicles in which a Fund invests a portion of its","page_number":86,"box":{"x":69,"y":75,"width":796,"height":11}},{"id":"e7aa95cb-ce7f-4d40-8aa5-d00466bc5ee5","block_type":"box","text":"assets.","page_number":86,"box":{"x":69,"y":91,"width":51,"height":8}},{"id":"ddc76637-f0bb-47a2-91c6-6d1c280e6ee6","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":86,"box":{"x":101,"y":113,"width":776,"height":11}},{"id":"3634f552-2112-43ba-b5c4-d42279016397","block_type":"box","text":"may be limited. In addition, a fund-of-funds (","page_number":86,"box":{"x":69,"y":128,"width":313,"height":11}},{"id":"249798da-cdcd-4159-ad4c-fc1423aa473e","block_type":"box","text":"e.g.","page_number":86,"box":{"x":384,"y":129,"width":24,"height":10}},{"id":"d2662d4c-f298-40ff-951e-586be993e967","block_type":"box","text":", an investment company that seeks to meet its investment objective","page_number":86,"box":{"x":411,"y":128,"width":491,"height":11}},{"id":"cdac6fd2-cc51-418b-82d4-8f5ea299aa67","block_type":"box","text":"by investing significantly in other investment companies) may be limited in its ability to purchase underlying funds if","page_number":86,"box":{"x":69,"y":143,"width":823,"height":11}},{"id":"486e6484-954a-4bab-bc62-f50e580f1ce1","block_type":"box","text":"such underlying funds themselves own shares of underlying funds.","page_number":86,"box":{"x":69,"y":158,"width":472,"height":11}},{"id":"72378fb6-283e-449d-8e13-d383e46726ba","block_type":"box","text":"A number of publicly traded closed-end investment companies have been organized to facilitate indirect foreign","page_number":86,"box":{"x":101,"y":181,"width":790,"height":11}},{"id":"19f3927b-ef21-48cf-bcea-e20577cbe9b5","block_type":"box","text":"investment in developing countries, and certain of such countries, such as Thailand, South Korea, Chile and Brazil,","page_number":86,"box":{"x":70,"y":196,"width":818,"height":11}},{"id":"0a0e3313-e56a-40f3-9f5c-e8c3a6235cec","block_type":"box","text":"have specifically authorized such funds. There also are investment opportunities in certain of such countries in","page_number":86,"box":{"x":69,"y":211,"width":791,"height":11}},{"id":"43debb68-a417-4ce1-b5ea-172d869127ad","block_type":"box","text":"pooled vehicles that resemble open-end investment companies. The restrictions on investments in securities of","page_number":86,"box":{"x":70,"y":226,"width":795,"height":11}},{"id":"0e815d55-f322-4a7a-8a60-5cc95a6ba467","block_type":"box","text":"investment companies set forth above may limit opportunities for a Fund to invest indirectly in certain developing","page_number":86,"box":{"x":70,"y":241,"width":807,"height":11}},{"id":"638b66f6-543f-4009-b8bc-bbfd1015f051","block_type":"box","text":"countries.","page_number":86,"box":{"x":69,"y":257,"width":69,"height":8}},{"id":"46b89882-e5c8-41d0-bbc6-c3d2e589105c","block_type":"box","text":"Issuer Insolvency Risk.","page_number":86,"box":{"x":102,"y":279,"width":166,"height":11}},{"id":"39148e58-bfc3-4e7e-a80b-a73fe61ccd0f","block_type":"box","text":"Certain Funds’ potential exposure to financially or operationally troubled issuers involves","page_number":86,"box":{"x":275,"y":279,"width":631,"height":11}},{"id":"c565371e-d620-4afc-bad7-454eb3812196","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":86,"box":{"x":69,"y":294,"width":832,"height":11}},{"id":"6d2a0120-2e88-4a0f-8117-81707005944d","block_type":"box","text":"an issuer of securities held by a Fund become involved in a bankruptcy proceeding, reorganization or financial","page_number":86,"box":{"x":69,"y":309,"width":781,"height":11}},{"id":"449eb824-e4ee-4830-9f47-0af363507ae3","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":86,"box":{"x":69,"y":324,"width":797,"height":12}},{"id":"b2566d63-5376-47f2-b0ae-5d072eadb74d","block_type":"box","text":"issuer uncertain.","page_number":86,"box":{"x":70,"y":340,"width":118,"height":8}},{"id":"cec26149-3f58-49b1-9105-f1fb44ed864a","block_type":"box","text":"During the period of a bankruptcy proceeding, reorganization or financial restructuring, it is unlikely that a Fund","page_number":86,"box":{"x":102,"y":362,"width":788,"height":11}},{"id":"970028a9-5d0f-4003-b940-888d4ecc65ff","block_type":"box","text":"will receive any interest payments on the securities of the issuer. A Fund will be subject to significant uncertainty as","page_number":86,"box":{"x":68,"y":377,"width":827,"height":12}},{"id":"0e5a3bf5-e063-4d79-9799-d0a4ffd861d7","block_type":"box","text":"to whether the reorganization or restructuring will be completed, and the Fund may bear certain extraordinary","page_number":86,"box":{"x":68,"y":393,"width":779,"height":11}},{"id":"29ec50d2-d1be-42ef-b3d4-2f2faaa2ed9b","block_type":"box","text":"expenses to protect and recover its investment. A Fund will also be subject to significant uncertainty as to when and","page_number":86,"box":{"x":69,"y":407,"width":829,"height":12}},{"id":"b8aad2e3-9a89-4edf-b38d-560a0dd38b12","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":86,"box":{"x":70,"y":423,"width":797,"height":11}},{"id":"86db8166-e8ba-40cf-acab-f9822bf6a48e","block_type":"box","text":"eventually be satisfied.","page_number":86,"box":{"x":69,"y":438,"width":162,"height":11}},{"id":"ea399e86-e2e3-4c67-899b-f80a6f643a7c","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":86,"box":{"x":102,"y":460,"width":805,"height":12}},{"id":"92685704-aea8-4035-bce9-d49fa7403d49","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":86,"box":{"x":70,"y":476,"width":827,"height":11}},{"id":"64033dba-0637-463b-afd2-16b0b9943564","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":86,"box":{"x":69,"y":491,"width":819,"height":11}},{"id":"3cdeb37e-e8d3-42a1-b3d8-b93b4b1c7d24","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":86,"box":{"x":69,"y":506,"width":802,"height":11}},{"id":"6b3ffc58-9d8d-48a6-bc74-e6f55ad516c8","block_type":"box","text":"interest in any collateral challenged, disallowed or subordinated to the claims or security interests of other creditors.","page_number":86,"box":{"x":70,"y":521,"width":830,"height":11}},{"id":"a9990a14-eb00-4d7d-bc77-ab89256e93c8","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":86,"box":{"x":70,"y":536,"width":805,"height":11}},{"id":"9d2ff281-bdc1-4568-aa63-d1973c2fe74a","block_type":"box","text":"introduce greater uncertainty regarding the outcome of the Fund’s securities holdings in the issuer. In a bankruptcy","page_number":86,"box":{"x":70,"y":551,"width":820,"height":11}},{"id":"058787c9-d534-400c-b07d-84131128d504","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":86,"box":{"x":70,"y":566,"width":828,"height":11}},{"id":"0343abdb-418f-4907-8c48-4b1424fb58d7","block_type":"box","text":"a Fund may receive different securities or other assets, including equity securities. These types of equity securities","page_number":86,"box":{"x":69,"y":581,"width":820,"height":12}},{"id":"349a37d7-2799-4109-9c29-342301dfbbd9","block_type":"box","text":"include, but are not limited to: common stock; preferred stock (including convertible preferred stock); bonds, notes","page_number":86,"box":{"x":70,"y":596,"width":820,"height":12}},{"id":"57213b76-d4e5-49b9-a173-cf58fc2c39ec","block_type":"box","text":"and debentures convertible into common or preferred stock; stock purchase warrants and rights; equity interests in","page_number":86,"box":{"x":69,"y":612,"width":824,"height":11}},{"id":"4b718b40-a23d-4ba4-8118-ba17da08ebe3","block_type":"box","text":"trusts; and depositary receipts. Equity securities are subject to changes in value, and their value may be more","page_number":86,"box":{"x":68,"y":627,"width":788,"height":11}},{"id":"2e10aeb3-3bc4-4b52-ae4f-aa3142f2ce9b","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":86,"box":{"x":68,"y":642,"width":826,"height":11}},{"id":"818d4e7f-7195-42b4-94cb-b9ec7fcc1277","block_type":"box","text":"securities because the status of equity holders is subordinate to debtholders in an issuer’s capital structure. The","page_number":86,"box":{"x":69,"y":657,"width":809,"height":11}},{"id":"cbe1bc03-538b-4ad9-9bd0-8b9b924e503a","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":86,"box":{"x":68,"y":672,"width":809,"height":11}},{"id":"b87da03f-7772-4849-a441-4a87823286ba","block_type":"box","text":"overall market and economic conditions, or conditions within the issuer’s region or industry, deteriorate.","page_number":86,"box":{"x":69,"y":687,"width":741,"height":11}},{"id":"a84de556-7e13-49cf-a702-65a35c9f63c3","block_type":"box","text":"To the extent that a Fund receives other assets in connection with a bankruptcy proceeding, reorganization or","page_number":86,"box":{"x":101,"y":710,"width":780,"height":11}},{"id":"64fbe734-2928-40de-a4d0-161064ec7c18","block_type":"box","text":"financial restructuring, the Fund may also be subject to additional risks associated with the assets received. One","page_number":86,"box":{"x":68,"y":725,"width":807,"height":11}},{"id":"b10951e1-1eb9-4e45-9281-e8c613878783","block_type":"box","text":"example of assets that a Fund could receive is an interest in one or more loans made to the issuer as part of a","page_number":86,"box":{"x":69,"y":740,"width":795,"height":11}},{"id":"deade899-e7df-486e-a82d-8f4ec4f1dd72","block_type":"box","text":"workout agreed to by a consortium of lienholders and creditors of the issuer. A Fund may receive such interests in","page_number":86,"box":{"x":68,"y":755,"width":814,"height":11}},{"id":"87590c5e-da22-4c1f-9896-03ceabaf0df6","block_type":"box","text":"loans to the extent permitted by the Investment Company Act.","page_number":86,"box":{"x":70,"y":770,"width":439,"height":11}},{"id":"c083d94e-ab34-4d7e-9ba5-961251b9bbf5","block_type":"box","text":"Securities or other assets received in a reorganization or restructuring typically entail a higher degree of risk than","page_number":86,"box":{"x":102,"y":793,"width":806,"height":11}},{"id":"3d1022bf-3dad-45c8-93c5-a4ea07b052e6","block_type":"box","text":"investments in securities of issuers that have not undergone a reorganization or restructuring and may be subject to","page_number":86,"box":{"x":70,"y":808,"width":829,"height":11}},{"id":"722be192-bd81-46a6-b93d-d8af03bc24c2","block_type":"box","text":"heavy selling or downward pricing pressure after completion of the reorganization or restructuring. The post","page_number":86,"box":{"x":69,"y":823,"width":767,"height":12}},{"id":"1e7e199d-655f-43d0-92a5-4d25084dc8fd","block_type":"box","text":"reorganization/restructuring assets and securities may also be illiquid and difficult to sell or value. If a Fund","page_number":86,"box":{"x":69,"y":838,"width":771,"height":12}},{"id":"75c146ea-e702-446a-a56c-b46f8a480b65","block_type":"box","text":"participates in negotiations with respect to a plan of reorganization or restructuring with respect to securities of the","page_number":86,"box":{"x":70,"y":853,"width":823,"height":12}},{"id":"ea4dd5dc-d0f0-4001-915d-ba125f63433d","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":86,"box":{"x":70,"y":869,"width":822,"height":11}},{"id":"10c229ca-008d-4769-83f5-1eb6c7c651d0","block_type":"box","text":"becomes involved in such proceedings, the Fund may have more active participation in the affairs of the issuer than","page_number":86,"box":{"x":69,"y":884,"width":828,"height":11}},{"id":"46975937-2c4e-432e-bfdf-423fcfa26f3c","block_type":"box","text":"that assumed generally by an investor.","page_number":86,"box":{"x":68,"y":899,"width":274,"height":11}},{"id":"828d58f5-2ac0-430b-8abe-6dfc78a0c1f9","block_type":"box","text":"II-48","page_number":86,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"140ec223-3d06-4026-848d-814559f606ab","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":86,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4d910a78-f648-4f13-99fa-0d1584587888","block_type":"box","text":"Lease Obligations.","page_number":87,"box":{"x":102,"y":45,"width":133,"height":11}},{"id":"4285e282-1c5a-4903-a4cc-2a9ef159edaf","block_type":"box","text":"A Fund may hold participation certificates in a lease, an installment purchase contract, or a","page_number":87,"box":{"x":241,"y":45,"width":653,"height":11}},{"id":"9e1155f3-37ab-4227-b853-c9a2e2fed3d3","block_type":"box","text":"conditional sales contract (“lease obligations”). The Manager will monitor the credit standing of each borrower and","page_number":87,"box":{"x":69,"y":60,"width":816,"height":11}},{"id":"4ce27bab-f822-4ae2-844d-b70e818eef36","block_type":"box","text":"each entity providing credit support and/or a put option relating to lease obligations.","page_number":87,"box":{"x":69,"y":75,"width":602,"height":11}},{"id":"de19f8c4-b932-41f7-b4d9-9508ae0b8c1b","block_type":"box","text":"Life Settlement Investments.","page_number":87,"box":{"x":102,"y":98,"width":210,"height":9}},{"id":"f6426785-cfa7-4969-839a-71be9960c62c","block_type":"box","text":"A Fund may invest in life settlements, which are sales to third parties, such as the","page_number":87,"box":{"x":318,"y":98,"width":589,"height":11}},{"id":"e6a5b0e0-f6d6-4935-bafa-71881390862e","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":87,"box":{"x":70,"y":113,"width":838,"height":11}},{"id":"5888c6f8-7412-4b41-8c8c-6cbed33f5d74","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":87,"box":{"x":70,"y":128,"width":834,"height":11}},{"id":"eb634077-671e-4020-80cf-7770ed4d6e11","block_type":"box","text":"receipt of the net benefit as the beneficiary under the policy. Investments in these contracts involve certain risks,","page_number":87,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"1597af28-5e97-4a5e-bd86-d438907ea391","block_type":"box","text":"including liquidity risk, credit risk of the insurance company, and inaccurate estimations of life expectancy of the","page_number":87,"box":{"x":70,"y":158,"width":797,"height":11}},{"id":"3bcea402-8904-4a88-956e-3df72f001adb","block_type":"box","text":"insured individuals (viators). These policies may be considered illiquid because they are bought and sold in a","page_number":87,"box":{"x":70,"y":173,"width":775,"height":11}},{"id":"46bc8580-c7b2-4bfb-9993-cfd3a4eb7cec","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":87,"box":{"x":69,"y":188,"width":805,"height":12}},{"id":"57f9775d-3c1c-48a3-b8fe-27cc3757ab07","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":87,"box":{"x":70,"y":203,"width":789,"height":12}},{"id":"5ac1a5db-4239-4ff0-b1ff-a0775177e3ac","block_type":"box","text":"investing in policies issued by a diverse range of highly-rated insurance carriers. Furthermore, a Fund may encounter","page_number":87,"box":{"x":70,"y":218,"width":829,"height":12}},{"id":"f9ba774c-a58e-4beb-90f6-286979ab9fef","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":87,"box":{"x":70,"y":234,"width":813,"height":11}},{"id":"dc796461-d5f2-4d25-8d61-10ac3e657604","block_type":"box","text":"reduce this life expectancy risk by investing only in contracts where the life expectancy was reviewed by an","page_number":87,"box":{"x":69,"y":249,"width":758,"height":11}},{"id":"40ead6f0-c558-49f2-9708-7489b792ecaf","block_type":"box","text":"experienced actuary, as well as by diversifying its investments across viators of varying ages and medical profiles. In","page_number":87,"box":{"x":69,"y":264,"width":832,"height":11}},{"id":"62fef465-eed3-426e-aee8-1c2621b9b7af","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":87,"box":{"x":69,"y":279,"width":800,"height":11}},{"id":"c6100039-5c7a-4ecc-bbb2-5af76c7b874c","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":87,"box":{"x":68,"y":294,"width":809,"height":11}},{"id":"643d783e-bcec-4795-991a-57db9edc8fda","block_type":"box","text":"monitor its investments to ensure that the Fund remains qualified as a regulated investment company.","page_number":87,"box":{"x":69,"y":309,"width":730,"height":11}},{"id":"c92330e2-7c9c-46e0-97b1-06de27f47d9b","block_type":"box","text":"Liquidity Risk Management.","page_number":87,"box":{"x":102,"y":332,"width":202,"height":11}},{"id":"aef9efc6-f52c-48f9-9de5-8c01407a4ecb","block_type":"box","text":"Rule 22e-4 under the Investment Company Act (the “Liquidity Rule”) requires open","page_number":87,"box":{"x":311,"y":332,"width":591,"height":11}},{"id":"be4b30f0-4194-4174-954e-dd123e16ac7f","block_type":"box","text":"end funds, such as the Funds, to adopt a liquidity risk management program and enhance disclosures regarding fund","page_number":87,"box":{"x":69,"y":347,"width":835,"height":11}},{"id":"7b5a2613-a6f3-454d-946b-113997230bbd","block_type":"box","text":"liquidity. As required by the Liquidity Rule, the Funds have implemented a liquidity risk management program (the","page_number":87,"box":{"x":70,"y":362,"width":803,"height":11}},{"id":"1d211de3-76c2-42ba-a178-e0d044eea43c","block_type":"box","text":"“Liquidity Program”), and the Boards of Directors of the Funds, including a majority of the independent Directors,","page_number":87,"box":{"x":70,"y":377,"width":801,"height":12}},{"id":"e4267596-94fe-4ae4-9d05-f3ad0e1d8cf6","block_type":"box","text":"have appointed the Manager as the liquidity risk program administrator of the Liquidity Program. Under the Liquidity","page_number":87,"box":{"x":69,"y":392,"width":822,"height":12}},{"id":"c0ac7f84-98e8-43d4-935e-d8a5b43af65f","block_type":"box","text":"Program, the Manager assesses, manages, and periodically reviews each Fund’s liquidity risk and classifies each","page_number":87,"box":{"x":69,"y":407,"width":808,"height":12}},{"id":"bd70f29c-9dbf-44ff-9694-09dd6d6b107f","block_type":"box","text":"investment held by a Fund as a “highly liquid investment,” “moderately liquid investment,” “less liquid investment” or","page_number":87,"box":{"x":70,"y":423,"width":838,"height":11}},{"id":"db0dec9f-91d5-441d-bcbb-9b859d3a1021","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":87,"box":{"x":70,"y":438,"width":804,"height":11}},{"id":"c05a9018-257e-4f42-a371-35a3c0c7e765","block_type":"box","text":"redeem shares issued by the Fund without significant dilution of the remaining investors’ interests in the Fund. The","page_number":87,"box":{"x":69,"y":453,"width":821,"height":11}},{"id":"16fc4bfc-53df-4ae6-9bde-7291a0c74858","block_type":"box","text":"liquidity of a Fund’s portfolio investments is determined based on relevant market, trading and investment-specific","page_number":87,"box":{"x":70,"y":468,"width":815,"height":11}},{"id":"cb54015f-40e2-4a41-a034-d98cbd2c2483","block_type":"box","text":"considerations under the Liquidity Program. To the extent that an investment is deemed to be an illiquid investment","page_number":87,"box":{"x":69,"y":483,"width":823,"height":11}},{"id":"1423618a-e250-42e4-9314-7aa5aaf07d40","block_type":"box","text":"or a less liquid investment, a Fund can expect to be exposed to greater liquidity risk.","page_number":87,"box":{"x":69,"y":498,"width":601,"height":11}},{"id":"46adeb28-1aff-4383-a1ea-def5f2575fbc","block_type":"box","text":"Master Limited Partnerships.","page_number":87,"box":{"x":102,"y":521,"width":211,"height":11}},{"id":"4f784174-2d38-4c7e-9732-ef6fe017d5d5","block_type":"box","text":"Certain Funds may invest in publicly traded master limited partnerships (“MLPs”)","page_number":87,"box":{"x":320,"y":521,"width":577,"height":11}},{"id":"cd1e7a5c-9a8d-4c68-b19d-68f2f4697e5e","block_type":"box","text":"which are limited partnerships or limited liability companies taxable as partnerships. MLPs may derive income and","page_number":87,"box":{"x":68,"y":536,"width":816,"height":11}},{"id":"ae879587-fd89-446f-9edb-6773177a1019","block_type":"box","text":"gains from the exploration, development, mining or production, processing, refining, transportation (including","page_number":87,"box":{"x":68,"y":551,"width":777,"height":11}},{"id":"71038796-5832-4ece-a103-e02faf05f487","block_type":"box","text":"pipelines transporting gas, oil, or products thereof), or the marketing of any mineral or natural resources. MLPs","page_number":87,"box":{"x":70,"y":566,"width":792,"height":11}},{"id":"2c588488-7ad7-4198-8a76-14e178178231","block_type":"box","text":"generally have two classes of owners, the general partner and limited partners. When investing in an MLP, a Fund","page_number":87,"box":{"x":68,"y":581,"width":811,"height":12}},{"id":"4f1229e8-3c38-4beb-94ab-ee7e9336c123","block_type":"box","text":"intends to purchase publicly traded common units issued to limited partners of the MLP. The general partner is","page_number":87,"box":{"x":70,"y":596,"width":791,"height":12}},{"id":"a3ab0d49-0f65-45a9-8c1f-2a35efcca9e0","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":87,"box":{"x":68,"y":612,"width":812,"height":11}},{"id":"8cc45413-58e2-4b0a-b06a-82911653e6b7","block_type":"box","text":"owned by one or more of such parties. The general partner may be structured as a private or publicly traded","page_number":87,"box":{"x":69,"y":627,"width":770,"height":11}},{"id":"4fd71ba6-019e-44e5-b2ff-73541351a085","block_type":"box","text":"corporation or other entity. The general partner typically controls the operations and management of the MLP through","page_number":87,"box":{"x":69,"y":642,"width":833,"height":11}},{"id":"2f77fe18-b25e-4100-9bff-f1113287718c","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":87,"box":{"x":69,"y":657,"width":799,"height":11}},{"id":"030a2f56-e16f-4cb2-9eb3-ee4d60cbcd95","block_type":"box","text":"Limited partners own the remainder of the partnership, through ownership of common units, and have a limited role","page_number":87,"box":{"x":70,"y":672,"width":825,"height":11}},{"id":"3af91fc3-3582-4c8f-bf10-b425731234f9","block_type":"box","text":"in the partnership’s operations and management.","page_number":87,"box":{"x":70,"y":687,"width":352,"height":11}},{"id":"764f39a8-8f85-4020-9c93-1e93f2181096","block_type":"box","text":"MLPs are typically structured such that common units and general partner interests have first priority to receive","page_number":87,"box":{"x":102,"y":710,"width":794,"height":11}},{"id":"8a0dace1-2fd0-49ac-83a3-c38304b2f088","block_type":"box","text":"quarterly cash distributions up to an established minimum amount (“minimum quarterly distributions” or “MQD”).","page_number":87,"box":{"x":69,"y":725,"width":809,"height":11}},{"id":"e9e0ec2a-0bbf-4822-85fa-8d4e568aa4c7","block_type":"box","text":"Common and general partner interests also accrue arrearages in distributions to the extent the MQD is not paid.","page_number":87,"box":{"x":69,"y":740,"width":804,"height":11}},{"id":"8755d0de-70fb-470b-99c0-03ec8f359951","block_type":"box","text":"Once common and general partner interests have been paid, subordinated units receive distributions of up to the","page_number":87,"box":{"x":69,"y":755,"width":808,"height":11}},{"id":"a4555f95-5ba7-4965-8d0a-7d5272455d06","block_type":"box","text":"MQD; however, subordinated units do not accrue arrearages. Distributable cash in excess of the MQD paid to both","page_number":87,"box":{"x":70,"y":770,"width":816,"height":12}},{"id":"9e70dee9-05fd-4c15-bd00-ec4dcdabf2a5","block_type":"box","text":"common and subordinated units is distributed to both common and subordinated units generally on a pro rata basis.","page_number":87,"box":{"x":69,"y":786,"width":831,"height":11}},{"id":"96557d81-c50c-4244-935f-3b118aea8b0d","block_type":"box","text":"The general partner is also eligible to receive incentive distributions if the general partner operates the business in a","page_number":87,"box":{"x":68,"y":801,"width":835,"height":11}},{"id":"e845d2cd-253e-45f3-97f2-dbd4bcbf4261","block_type":"box","text":"manner which results in distributions paid per common unit surpassing specified target levels. As the general partner","page_number":87,"box":{"x":69,"y":816,"width":838,"height":11}},{"id":"659ffc02-c20c-4920-adf7-5f43d31cae65","block_type":"box","text":"increases cash distributions to the limited partners, the general partner receives an increasingly higher percentage of","page_number":87,"box":{"x":70,"y":831,"width":839,"height":11}},{"id":"38a82b0b-bf73-47e3-9f69-95ff9b6238dc","block_type":"box","text":"the incremental cash distributions. A common arrangement provides that the general partner can reach a tier where","page_number":87,"box":{"x":68,"y":846,"width":828,"height":11}},{"id":"72f4c267-3f12-4c3b-9f45-24da07c85bff","block_type":"box","text":"it receives 50% of every incremental dollar paid to common and subordinated unit holders. These incentive","page_number":87,"box":{"x":70,"y":861,"width":761,"height":11}},{"id":"709370e0-dccc-49ea-bda5-1dc38930b442","block_type":"box","text":"distributions encourage the general partner to streamline costs, increase capital expenditures and acquire assets in","page_number":87,"box":{"x":69,"y":876,"width":830,"height":11}},{"id":"9c4182fe-4dcb-4f06-87da-51446401b571","block_type":"box","text":"order to increase the partnership’s cash flow and raise the quarterly cash distribution in order to reach higher tiers.","page_number":87,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"2fa119dc-86cd-4bfa-a527-b4b68cdc92fd","block_type":"box","text":"Such results benefit all security holders of the MLP.","page_number":87,"box":{"x":69,"y":906,"width":366,"height":12}},{"id":"a719da4d-0afb-4d60-b3ee-cdffa8f882d6","block_type":"box","text":"II-49","page_number":87,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"69534429-f8a1-4b8f-b93d-5a3f72fb3b30","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":87,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"84568879-3393-47a7-b44a-cb5657a9ef11","block_type":"box","text":"MLP common units represent a limited partnership interest in the MLP. Common units are listed and traded on","page_number":88,"box":{"x":102,"y":45,"width":790,"height":11}},{"id":"70d664c4-09a8-40ff-9396-ff8f9b0e4d00","block_type":"box","text":"U.S. securities exchanges, with their value fluctuating predominantly based on prevailing market conditions and the","page_number":88,"box":{"x":70,"y":60,"width":820,"height":11}},{"id":"95626c49-9c42-4f58-bf0d-849817874908","block_type":"box","text":"success of the MLP. Certain Funds intend to purchase common units in market transactions. Unlike owners of","page_number":88,"box":{"x":69,"y":75,"width":787,"height":11}},{"id":"cea3f3ec-036a-472c-8980-3cb98b6df495","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":88,"box":{"x":69,"y":90,"width":810,"height":11}},{"id":"a51e73a3-7f21-450d-b2ee-7e7dbbd71b43","block_type":"box","text":"elect directors. In the event of liquidation, common units have preference over subordinated units, but not over debt","page_number":88,"box":{"x":69,"y":105,"width":828,"height":11}},{"id":"ecba7361-1691-4132-8af8-a460f6d09bf1","block_type":"box","text":"or preferred units, to the remaining assets of the MLP.","page_number":88,"box":{"x":69,"y":120,"width":387,"height":12}},{"id":"7f1b6c44-cb68-48f3-9ff5-6fd39d093ff8","block_type":"box","text":"Merger Transaction Risk.","page_number":88,"box":{"x":102,"y":143,"width":183,"height":11}},{"id":"1ca4d756-c55c-45da-b26a-967f75777ba9","block_type":"box","text":"A Fund may buy stock of the target company in an announced merger transaction prior","page_number":88,"box":{"x":291,"y":143,"width":616,"height":11}},{"id":"ba3bc4c3-057f-430b-9046-70b580020c5b","block_type":"box","text":"to the consummation of such transaction. In that circumstance, a Fund would expect to receive an amount (whether","page_number":88,"box":{"x":68,"y":158,"width":827,"height":11}},{"id":"52cde478-83a2-4bc0-ae1d-5751a44b24b4","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":88,"box":{"x":70,"y":173,"width":816,"height":11}},{"id":"3c6221ec-3efc-48a6-b64a-c9c0e4d31c11","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":88,"box":{"x":68,"y":188,"width":825,"height":12}},{"id":"4a6f67fb-0acd-413a-813f-c2bfd38d7732","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":88,"box":{"x":69,"y":203,"width":832,"height":12}},{"id":"0f93303f-a559-46ca-a94c-e8266a370951","block_type":"box","text":"the Fund and may lose significant value.","page_number":88,"box":{"x":68,"y":218,"width":286,"height":12}},{"id":"19ba5628-3925-445d-976c-dcdeb329fcc7","block_type":"box","text":"Money Market Obligations of Domestic Banks, Foreign Banks and Foreign Branches of U.S. Banks.","page_number":88,"box":{"x":102,"y":241,"width":723,"height":11}},{"id":"40d9eee1-46eb-4cb4-89b3-555d516eaaa8","block_type":"box","text":"Certain","page_number":88,"box":{"x":831,"y":241,"width":50,"height":9}},{"id":"f61471dc-96ca-4efb-8b7b-5ead14d265e5","block_type":"box","text":"Funds may purchase bank obligations, such as certificates of deposit, notes, bankers’ acceptances and time","page_number":88,"box":{"x":70,"y":256,"width":778,"height":12}},{"id":"60adfb9e-76a5-4419-a41c-dd06e5efd543","block_type":"box","text":"deposits, including instruments issued or supported by the credit of U.S. or foreign banks or savings institutions","page_number":88,"box":{"x":69,"y":271,"width":802,"height":12}},{"id":"01e6850d-a360-452b-80cb-ea301c4feed1","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":88,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"2d53ec79-5460-43b5-a8c2-413fdca7f641","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":88,"box":{"x":68,"y":302,"width":794,"height":11}},{"id":"2c633cbd-256e-498e-965b-6aa2429ee2cf","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":88,"box":{"x":68,"y":317,"width":781,"height":11}},{"id":"b552d561-e05d-4476-b93d-760a70190699","block_type":"box","text":"domestic and foreign branches for purposes of a Fund’s investment policies. Investments in short-term bank","page_number":88,"box":{"x":69,"y":332,"width":776,"height":11}},{"id":"cd58ea18-8d4d-4fb7-b0b5-5a319dbe7e8d","block_type":"box","text":"obligations may include obligations of foreign banks and domestic branches of foreign banks, and also foreign","page_number":88,"box":{"x":69,"y":347,"width":785,"height":11}},{"id":"c2d2362b-158f-4ad4-b904-f32a762073ff","block_type":"box","text":"branches of domestic banks.","page_number":88,"box":{"x":69,"y":362,"width":205,"height":9}},{"id":"b1d8eb76-c2fe-41f7-b468-0c033722dea2","block_type":"box","text":"To the extent consistent with their investment objectives, a Fund may invest in debt obligations of domestic or","page_number":88,"box":{"x":101,"y":385,"width":785,"height":11}},{"id":"3f9cd635-934d-414c-8fc4-03834bedddf3","block_type":"box","text":"foreign corporations and banks, and may acquire commercial obligations issued by Canadian corporations and","page_number":88,"box":{"x":68,"y":400,"width":787,"height":11}},{"id":"44ee6196-5e40-4e9e-bf49-df03a9831f8a","block_type":"box","text":"Canadian counterparts of U.S. corporations, as well as Europaper, which is U.S. dollar-denominated commercial","page_number":88,"box":{"x":69,"y":415,"width":797,"height":11}},{"id":"82f96b00-96cd-4a91-ae3e-d563e5b91795","block_type":"box","text":"paper of a foreign issuer.","page_number":88,"box":{"x":70,"y":430,"width":176,"height":11}},{"id":"85cd40bf-0c65-4f2b-abfb-bcb3246bbb0b","block_type":"box","text":"Money Market Securities.","page_number":88,"box":{"x":102,"y":453,"width":188,"height":11}},{"id":"1d2d67ae-be7a-4ed0-b0dd-f419d00750ee","block_type":"box","text":"Certain Funds may invest in a broad range of short-term, high quality, U.S. dollar","page_number":88,"box":{"x":296,"y":453,"width":578,"height":11}},{"id":"d6c2c904-889d-458c-b04a-34a5fbb83ecb","block_type":"box","text":"denominated instruments, such as government, bank, commercial and other obligations that are available in the","page_number":88,"box":{"x":69,"y":468,"width":802,"height":11}},{"id":"139a0a84-8b4c-4185-953f-6b68e0248f2b","block_type":"box","text":"money markets. In particular, the Funds may invest in:","page_number":88,"box":{"x":69,"y":483,"width":386,"height":11}},{"id":"60944b40-1197-4c51-bfef-657786e4d7f6","block_type":"box","text":"(a) U.S. dollar-denominated obligations issued or supported by the credit of U.S. or foreign banks or savings","page_number":88,"box":{"x":69,"y":503,"width":779,"height":12}},{"id":"bfc7e7ac-ac4a-4da0-a051-579c13dd6b0c","block_type":"box","text":"institutions with total assets in excess of $1 billion (including obligations of foreign branches of such banks);","page_number":88,"box":{"x":102,"y":518,"width":776,"height":12}},{"id":"f586bcf2-c511-41e6-a91a-9f02c893fb9a","block_type":"box","text":"(b) high quality commercial paper and other obligations issued or guaranteed by U.S. and foreign corporations and","page_number":88,"box":{"x":69,"y":538,"width":821,"height":12}},{"id":"0f5ae50d-e41b-4053-b00f-3c47c52af80a","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":88,"box":{"x":102,"y":554,"width":795,"height":11}},{"id":"f62f9acb-92aa-4b8b-92d7-291db04b6e89","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":88,"box":{"x":102,"y":569,"width":757,"height":11}},{"id":"053a6e5c-2a7d-4b05-9b47-36e093a3d1c4","block_type":"box","text":"agencies;","page_number":88,"box":{"x":102,"y":584,"width":66,"height":11}},{"id":"d35b2f49-d990-4319-a141-2c9af9c0dfbc","block_type":"box","text":"(c) unrated notes, paper and other instruments that are of comparable quality to the instruments described in","page_number":88,"box":{"x":69,"y":604,"width":792,"height":11}},{"id":"cada0680-abcc-48ae-b95e-cc88f44a7aab","block_type":"box","text":"(b) above as determined by the Fund’s Manager;","page_number":88,"box":{"x":102,"y":619,"width":344,"height":11}},{"id":"3d57abca-ac61-4356-b845-4795ae76e780","block_type":"box","text":"(d) asset-backed securities (including interests in pools of assets such as mortgages, installment purchase","page_number":88,"box":{"x":69,"y":639,"width":776,"height":12}},{"id":"4c58eaa0-f456-4438-84d9-99fa052f281d","block_type":"box","text":"obligations and credit card receivables);","page_number":88,"box":{"x":102,"y":655,"width":283,"height":11}},{"id":"e63a9af2-b5f6-40bc-ae09-2f4e8f549e19","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":88,"box":{"x":69,"y":675,"width":778,"height":11}},{"id":"24a34540-dd43-40b5-8cf9-7bb3802c0a36","block_type":"box","text":"authorities and related custodial receipts;","page_number":88,"box":{"x":102,"y":690,"width":296,"height":11}},{"id":"171c8401-8e0a-4915-bea0-fee892c88d8c","block_type":"box","text":"(f) dollar-denominated securities issued or guaranteed by foreign governments or their political subdivisions,","page_number":88,"box":{"x":69,"y":710,"width":782,"height":11}},{"id":"c00fd43a-f247-4fe9-9936-0c6a289b88ea","block_type":"box","text":"agencies or authorities;","page_number":88,"box":{"x":102,"y":725,"width":166,"height":11}},{"id":"18f92b03-d097-43fb-b9da-115f2561113c","block_type":"box","text":"(g) funding agreements issued by highly-rated U.S. insurance companies;","page_number":88,"box":{"x":69,"y":745,"width":528,"height":11}},{"id":"0450c53a-f0ca-4d4e-ab40-b4d1746a1b80","block_type":"box","text":"(h) securities issued or guaranteed by state or local governmental bodies;","page_number":88,"box":{"x":69,"y":766,"width":534,"height":11}},{"id":"64c1c34c-6ec5-410c-9af5-3fe9b2a27e41","block_type":"box","text":"(i) repurchase agreements relating to the above instruments;","page_number":88,"box":{"x":69,"y":786,"width":447,"height":11}},{"id":"705f53fb-689b-4ce1-b51b-166f90431141","block_type":"box","text":"(j) municipal bonds and notes whose principal and interest payments are guaranteed by the U.S. Government or","page_number":88,"box":{"x":69,"y":806,"width":812,"height":11}},{"id":"7529fdc9-14f4-46bf-8490-cca68c5a660b","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":88,"box":{"x":102,"y":821,"width":766,"height":11}},{"id":"a489baf5-6b49-45f8-9810-2abf16c925c8","block_type":"box","text":"States;","page_number":88,"box":{"x":102,"y":836,"width":49,"height":10}},{"id":"710df1eb-ec66-4894-b377-0ac4cd903b00","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":88,"box":{"x":69,"y":856,"width":829,"height":11}},{"id":"2d1be28a-3723-4db2-8a69-315a555880f3","block_type":"box","text":"SP-2 or A-2 or higher by S&P, or F-2 or higher by Fitch;","page_number":88,"box":{"x":102,"y":871,"width":379,"height":11}},{"id":"0c3c44b9-a56c-4c6f-a371-03b8e9743eca","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":88,"box":{"x":69,"y":891,"width":826,"height":12}},{"id":"7f3c4f68-f847-4b7d-85c5-ebe46e21d0f3","block_type":"box","text":"S&P, or F-2 or higher by Fitch;","page_number":88,"box":{"x":102,"y":906,"width":207,"height":12}},{"id":"6acd2945-f3e8-46b6-a184-649011614f64","block_type":"box","text":"II-50","page_number":88,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"8bbeef78-7be9-4376-87f9-789fbbc6a888","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":88,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1431527c-c41c-4058-89d5-ca7a236c1683","block_type":"box","text":"(m) municipal bonds rated A or higher by Moody’s, S&P or Fitch;","page_number":89,"box":{"x":69,"y":45,"width":458,"height":11}},{"id":"f1a26332-7c05-4a40-9963-7d2802e28273","block_type":"box","text":"(n) unrated notes, paper or other instruments that are of comparable quality to the instruments described above, as","page_number":89,"box":{"x":69,"y":65,"width":837,"height":11}},{"id":"a4508033-0db2-421b-9c38-84a828e93919","block_type":"box","text":"determined by the Fund’s Manager under guidelines established by the Board; and","page_number":89,"box":{"x":101,"y":80,"width":589,"height":11}},{"id":"4e40f7d2-fa4e-4ffd-9008-e5650eaa4d0f","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":89,"box":{"x":69,"y":100,"width":795,"height":11}},{"id":"9bd1d17f-b367-42fe-a8d2-58de55459500","block_type":"box","text":"agency or instrumentality thereof or which otherwise depend directly or indirectly on the credit of the United","page_number":89,"box":{"x":102,"y":115,"width":764,"height":11}},{"id":"0852804e-0caf-43e1-9101-50d24be77e2b","block_type":"box","text":"States.","page_number":89,"box":{"x":102,"y":130,"width":49,"height":9}},{"id":"f4e8bf21-c44e-45ef-8068-dff0e7d5b62d","block_type":"box","text":"Mortgage-Related Securities.","page_number":89,"box":{"x":102,"y":153,"width":213,"height":11}},{"id":"df171566-3a2f-4220-a07c-a95fb9c8ab4f","block_type":"box","text":"Mor tgage-Backed Securities.","page_number":89,"box":{"x":102,"y":176,"width":203,"height":11}},{"id":"4efd83aa-c36a-44e5-8710-ff77e95c9b4b","block_type":"box","text":"Mortgage-backed securities represent interests in pools of mortgages in which","page_number":89,"box":{"x":312,"y":176,"width":560,"height":11}},{"id":"873d341c-3b6d-472d-b3b0-2aaad0466e49","block_type":"box","text":"payments of both principal and interest on the securities are generally made monthly, in effect “passing through”","page_number":89,"box":{"x":70,"y":191,"width":805,"height":11}},{"id":"7ad0f2d3-5b7c-45a3-9e26-459017df3245","block_type":"box","text":"monthly payments made by borrowers on the residential or commercial mortgage loans that underlie the securities","page_number":89,"box":{"x":69,"y":206,"width":819,"height":11}},{"id":"d09fd245-8ea1-476c-8d70-2573675dc70a","block_type":"box","text":"(net of any fees paid to the issuer or guarantor of the securities). Mortgage-backed securities differ from other forms","page_number":89,"box":{"x":69,"y":221,"width":832,"height":11}},{"id":"e1cd99d4-d8de-4b6f-b6bb-978c0c9099f8","block_type":"box","text":"of debt securities, which normally provide for periodic payment of interest in fixed amounts with principal payments at","page_number":89,"box":{"x":69,"y":236,"width":838,"height":11}},{"id":"60567a99-b58f-417c-a615-dbbab3db607c","block_type":"box","text":"maturity or specified call dates.","page_number":89,"box":{"x":69,"y":251,"width":222,"height":11}},{"id":"78613105-6329-4d6c-a340-1e466da45aa4","block_type":"box","text":"Mortgage-backed securities are subject to the general risks associated with investing in real estate securities;","page_number":89,"box":{"x":102,"y":274,"width":785,"height":11}},{"id":"80ef12a0-0524-4fc2-8301-3067d400b715","block_type":"box","text":"that is, they may lose value if the value of the underlying real estate to which a pool of mortgages relates declines. In","page_number":89,"box":{"x":68,"y":289,"width":838,"height":11}},{"id":"5e73d08a-cd78-4ba9-bbe0-4717f72ba490","block_type":"box","text":"addition, investments in mortgage-backed securities involve certain specific risks. These risks include the failure of a","page_number":89,"box":{"x":69,"y":304,"width":836,"height":11}},{"id":"e27a2d24-8a5e-4766-8bec-3263a67ae757","block_type":"box","text":"party to meet its commitments under the related operative documents, adverse interest rate changes and the effects","page_number":89,"box":{"x":70,"y":319,"width":837,"height":12}},{"id":"c991a5cf-6cba-4731-9a98-d49d60ccc208","block_type":"box","text":"of prepayments on mortgage cash flows. Mortgage-backed securities are “pass-through” securities, meaning that","page_number":89,"box":{"x":69,"y":334,"width":810,"height":12}},{"id":"6ae254f2-4b02-4fcb-8c4f-2a97ff52b881","block_type":"box","text":"principal and interest payments made by the borrower on the underlying mortgages are passed through to a Fund.","page_number":89,"box":{"x":70,"y":350,"width":811,"height":11}},{"id":"cd57d12d-d35c-4e40-a6d3-448a45a6cab4","block_type":"box","text":"Accordingly, the value of mortgage-backed securities in which a Fund invests may be particularly sensitive to changes","page_number":89,"box":{"x":68,"y":365,"width":837,"height":11}},{"id":"0999e679-428e-45cb-974f-21c7b8446929","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":89,"box":{"x":70,"y":380,"width":834,"height":11}},{"id":"e24df32c-a430-400c-a1a9-1ad279e107ce","block_type":"box","text":"successfully may depend in part upon the ability of the Manager to forecast interest rates and other economic factors","page_number":89,"box":{"x":69,"y":395,"width":840,"height":11}},{"id":"c1c9f727-80eb-4580-9f08-01c8dc848af1","block_type":"box","text":"correctly. The value of mortgage-backed securities, like that of traditional fixed-income securities, typically increases","page_number":89,"box":{"x":69,"y":410,"width":827,"height":11}},{"id":"914dc716-c751-43c4-989c-6aeb708a770f","block_type":"box","text":"when interest rates fall and decreases when interest rates rise. However, mortgage-backed securities differ from","page_number":89,"box":{"x":68,"y":425,"width":805,"height":11}},{"id":"7a3d59d3-069f-4bc1-855d-d3db9e6c5a34","block_type":"box","text":"traditional fixed-income securities because of their potential for prepayment without penalty. The price paid by a Fund","page_number":89,"box":{"x":68,"y":440,"width":834,"height":11}},{"id":"dce76b55-3001-4a54-bbbd-37c6d20fd290","block_type":"box","text":"for its mortgage-backed securities, the yield the Fund expects to receive from such securities and the weighted","page_number":89,"box":{"x":68,"y":455,"width":791,"height":12}},{"id":"75ba3a9f-5b1f-46e9-a0c2-7a1a32d68b13","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":89,"box":{"x":69,"y":470,"width":816,"height":12}},{"id":"cf83b8ef-9c1e-4ff9-a5ad-ecd3f579d2b0","block_type":"box","text":"underlying mortgages. In a period of declining interest rates, borrowers may prepay the underlying mortgages more","page_number":89,"box":{"x":69,"y":486,"width":819,"height":11}},{"id":"43be8627-993c-48f5-82e7-955604d290a1","block_type":"box","text":"quickly than anticipated, thereby reducing the yield to maturity and the average life of the mortgage-backed","page_number":89,"box":{"x":69,"y":501,"width":761,"height":11}},{"id":"7a808349-396d-424d-9db0-d0492b5dd012","block_type":"box","text":"securities. Moreover, when a Fund reinvests the proceeds of a prepayment in these circumstances, it will likely","page_number":89,"box":{"x":69,"y":516,"width":791,"height":11}},{"id":"cbb9d8a1-3077-459b-b5a1-7ab470a3e3d7","block_type":"box","text":"receive a rate of interest that is lower than the rate on the security that was prepaid.","page_number":89,"box":{"x":69,"y":531,"width":602,"height":11}},{"id":"ff214a8d-c96c-4933-95d6-b16e269afd2b","block_type":"box","text":"To the extent that a Fund purchases mortgage-backed securities at a premium, mortgage foreclosures and","page_number":89,"box":{"x":101,"y":554,"width":761,"height":11}},{"id":"d920b66f-2d13-496a-b909-9f1455155cf5","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":89,"box":{"x":70,"y":569,"width":800,"height":11}},{"id":"5ff0fb6a-a42a-464e-9748-129146f67340","block_type":"box","text":"discount, both scheduled payments of principal and unscheduled prepayments will increase current and total returns","page_number":89,"box":{"x":69,"y":584,"width":833,"height":11}},{"id":"115b75cf-fd23-4a20-a2db-c7546f3d605b","block_type":"box","text":"and will accelerate the recognition of income, which, when distributed to shareholders, will be taxable as ordinary","page_number":89,"box":{"x":69,"y":599,"width":809,"height":11}},{"id":"a83d5d33-7c59-4b6a-96c3-08b29d4e5b9b","block_type":"box","text":"income. In a period of rising interest rates, prepayments of the underlying mortgages may occur at a slower than","page_number":89,"box":{"x":70,"y":614,"width":801,"height":11}},{"id":"69b03975-070a-42c8-bb42-a991faa06080","block_type":"box","text":"expected rate, creating maturity extension risk. This particular risk may effectively change a security that was","page_number":89,"box":{"x":69,"y":629,"width":778,"height":11}},{"id":"cd9a2436-0dbb-4e8b-91c7-449dbbd2e9f0","block_type":"box","text":"considered short- or intermediate-term at the time of purchase into a long-term security. Since the value of long-term","page_number":89,"box":{"x":69,"y":644,"width":831,"height":12}},{"id":"73f62e93-4021-4db0-ad02-115ef875088e","block_type":"box","text":"securities generally fluctuates more widely in response to changes in interest rates than that of shorter-term","page_number":89,"box":{"x":69,"y":659,"width":773,"height":12}},{"id":"7ead3461-2396-4b01-bd7d-209568e8edfa","block_type":"box","text":"securities, maturity extension risk could increase the inherent volatility of the Fund. Under certain interest rate and","page_number":89,"box":{"x":69,"y":675,"width":818,"height":11}},{"id":"c171c28f-5870-427f-8130-856fdde93557","block_type":"box","text":"prepayment scenarios, a Fund may fail to recoup fully its investment in mortgage-backed securities notwithstanding","page_number":89,"box":{"x":70,"y":690,"width":822,"height":11}},{"id":"1dddbc28-e3e7-4da4-9fc2-0e2791716b6d","block_type":"box","text":"any direct or indirect governmental or agency guarantee.","page_number":89,"box":{"x":69,"y":705,"width":399,"height":11}},{"id":"00256e1a-0777-40fb-a44b-441dc9acfee9","block_type":"box","text":"There are currently three types of mortgage pass-through securities: (1) those issued by the U.S. Government or","page_number":89,"box":{"x":101,"y":727,"width":802,"height":12}},{"id":"43a37e8b-1a74-411f-ab13-7a6e36ce2fb5","block_type":"box","text":"one of its agencies or instrumentalities, such as the Government National Mortgage Association (“Ginnie Mae”), the","page_number":89,"box":{"x":69,"y":743,"width":830,"height":11}},{"id":"9500ccf4-8f88-493e-bac6-d1340510dc79","block_type":"box","text":"Federal National Mortgage Association (“Fannie Mae”) and the Federal Home Loan Mortgage Corporation (“Freddie","page_number":89,"box":{"x":70,"y":758,"width":818,"height":11}},{"id":"c02e7fb3-33ed-4b58-b834-dc3cfcff0178","block_type":"box","text":"Mac”); (2) those issued by private issuers that represent an interest in or are collateralized by pass-through","page_number":89,"box":{"x":70,"y":773,"width":766,"height":11}},{"id":"cfc776e6-5f34-47db-9d9f-c24d5b8612ba","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":89,"box":{"x":69,"y":788,"width":808,"height":11}},{"id":"a3af1a3c-9133-4a04-9330-38251d3f9e98","block_type":"box","text":"issued by private issuers that represent an interest in or are collateralized by whole mortgage loans or pass-through","page_number":89,"box":{"x":70,"y":803,"width":825,"height":11}},{"id":"35892edb-12b0-4d95-8149-d146ec003ae4","block_type":"box","text":"securities without a government guarantee but that usually have some form of private credit enhancement.","page_number":89,"box":{"x":69,"y":818,"width":761,"height":11}},{"id":"dd4a1036-563e-4c6a-b7de-162703c4709a","block_type":"box","text":"Ginnie Mae is a wholly owned U.S. Government corporation within the Department of Housing and Urban","page_number":89,"box":{"x":102,"y":841,"width":743,"height":11}},{"id":"681df007-fcd7-480f-8d52-f62a1039b9e8","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":89,"box":{"x":70,"y":856,"width":831,"height":11}},{"id":"f5f6ed65-de44-4732-8c70-9b83ea3589b8","block_type":"box","text":"payment of principal and interest on securities issued by the institutions approved by Ginnie Mae (such as savings","page_number":89,"box":{"x":70,"y":871,"width":815,"height":11}},{"id":"eb808e97-9c29-4a9a-a780-5eeb5a5234c9","block_type":"box","text":"and loan institutions, commercial banks and mortgage banks), and backed by pools of Federal Housing","page_number":89,"box":{"x":69,"y":886,"width":737,"height":12}},{"id":"01fe144c-a8a7-443b-8e7a-0fc5203b7e37","block_type":"box","text":"Administration (“FHA”)-insured or Veterans’ Administration (“VA”)-guaranteed mortgages. Pass-through certificates","page_number":89,"box":{"x":68,"y":901,"width":814,"height":12}},{"id":"7ee527a2-42ae-4511-94fa-230e3d75195d","block_type":"box","text":"II-51","page_number":89,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b7007b29-9e8a-49ed-b3db-87d9ba7355f6","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":89,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b6aecafd-8db4-4b48-af53-5d9fc0ca2b35","block_type":"box","text":"guaranteed by Ginnie Mae (such certificates are also known as “Ginnie Maes”) are guaranteed as to the timely","page_number":90,"box":{"x":68,"y":45,"width":794,"height":11}},{"id":"ec4ba890-c5fd-404e-b052-aeb95f212a6e","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":90,"box":{"x":70,"y":60,"width":828,"height":11}},{"id":"fd683e4a-99cb-4f6c-b83b-56e2664bf59e","block_type":"box","text":"States. Ginnie Mae certificates also are supported by the authority of Ginnie Mae to borrow funds from the U.S.","page_number":90,"box":{"x":69,"y":75,"width":798,"height":11}},{"id":"34ea7911-8bb8-4725-b547-fd3deb8572a0","block_type":"box","text":"Treasury Department to make payments under its guarantee. Mortgage-related securities issued by Fannie Mae","page_number":90,"box":{"x":68,"y":90,"width":798,"height":11}},{"id":"b86333fc-201b-4fcc-aaff-bcd635bcbb09","block_type":"box","text":"include Fannie Mae guaranteed Mortgage Pass-Through Certificates (also known as “Fannie Maes”), which are","page_number":90,"box":{"x":70,"y":105,"width":788,"height":11}},{"id":"76f3c367-e488-4b10-b31c-8ac99a520e7e","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":90,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"84a92322-4863-4575-9fed-6b0cfeb577cb","block_type":"box","text":"faith and credit of the United States, but are supported by the right of Fannie Mae to borrow from the U.S. Treasury","page_number":90,"box":{"x":68,"y":135,"width":825,"height":12}},{"id":"e2ed2fad-9b45-43a6-a957-a79473fb51c7","block_type":"box","text":"Department. Fannie Mae was established as a federal agency in 1938 and in 1968 was chartered by Congress as a","page_number":90,"box":{"x":70,"y":150,"width":830,"height":12}},{"id":"b5780b3c-a77a-4451-8792-ba7cfec8a752","block_type":"box","text":"private shareholder-owned company. Mortgage-related securities issued by Freddie Mac include Freddie Mac","page_number":90,"box":{"x":70,"y":166,"width":770,"height":11}},{"id":"32b9c66c-b7b5-4359-8bf5-a2d2e22728a2","block_type":"box","text":"Mortgage Participation Certificates (also known as “Freddie Macs” or “PCs”). Freddie Mac is a stockholder-owned","page_number":90,"box":{"x":70,"y":181,"width":812,"height":11}},{"id":"dc148488-109e-4385-8ea4-fb75ab310935","block_type":"box","text":"corporation chartered by Congress in 1970. Freddie Macs are not guaranteed by the United States or by any Federal","page_number":90,"box":{"x":69,"y":196,"width":829,"height":11}},{"id":"f6ddaffd-8cd9-4a06-ad44-1396ca22bdfb","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":90,"box":{"x":70,"y":211,"width":832,"height":11}},{"id":"349e09b9-2331-4c6c-abf5-58228496d48f","block_type":"box","text":"Freddie Macs entitle the holder to timely payment of interest, which is guaranteed by Freddie Mac. Freddie Mac","page_number":90,"box":{"x":70,"y":226,"width":792,"height":11}},{"id":"37621d4d-b78f-4b74-8bdc-61511829e41b","block_type":"box","text":"guarantees either ultimate collection or timely payment of all principal payments on the underlying mortgage loans.","page_number":90,"box":{"x":68,"y":241,"width":819,"height":11}},{"id":"1250d905-8b91-417d-9bc7-37ba0938bfb2","block_type":"box","text":"While Freddie Mac generally does not guarantee timely payment of principal, Freddie Mac may remit the amount due","page_number":90,"box":{"x":68,"y":256,"width":829,"height":12}},{"id":"b0f8c5ab-206b-4e6b-b621-aa5effd18e76","block_type":"box","text":"on account of its guarantee of ultimate payment of principal at any time after default on an underlying mortgage, but","page_number":90,"box":{"x":69,"y":271,"width":829,"height":12}},{"id":"6a8b8930-100b-4d67-a9e6-2e3dcd3e5bff","block_type":"box","text":"in no event later than one year after it becomes payable.","page_number":90,"box":{"x":70,"y":286,"width":401,"height":12}},{"id":"9df6f773-cb72-4b2f-9a8e-8a9f15979377","block_type":"box","text":"Private mortgage pass-through securities are structured similarly to Ginnie Mae, Fannie Mae, and Freddie Mac","page_number":90,"box":{"x":102,"y":309,"width":786,"height":11}},{"id":"983e9d87-57e2-4302-b33d-cce429752098","block_type":"box","text":"mortgage pass-through securities and are issued by originators of and investors in mortgage loans, including","page_number":90,"box":{"x":69,"y":324,"width":777,"height":12}},{"id":"1f0268d4-fca0-4aac-a202-08ccfa05674f","block_type":"box","text":"depository institutions, mortgage banks, investment banks and special purpose subsidiaries of the foregoing.","page_number":90,"box":{"x":69,"y":339,"width":782,"height":12}},{"id":"9d67c39c-102d-4a40-b535-e4ba8bff84a5","block_type":"box","text":"Pools created by private mortgage pass-through issuers generally offer a higher rate of interest than government","page_number":90,"box":{"x":102,"y":362,"width":802,"height":11}},{"id":"ab00a6d1-6f24-44bb-8e6e-950b70cb117d","block_type":"box","text":"and government-related pools because there are no direct or indirect government or agency guarantees of payments","page_number":90,"box":{"x":69,"y":377,"width":828,"height":12}},{"id":"54239b72-bcd0-4ef0-8694-f2f06a1721ac","block_type":"box","text":"in the private pools. However, timely payment of interest and principal of these pools may be supported by various","page_number":90,"box":{"x":70,"y":392,"width":814,"height":12}},{"id":"edd1453a-62e8-4c62-8033-f27c420201d8","block_type":"box","text":"forms of insurance or guarantees, including individual loan, title, pool and hazard insurance and letters of credit. The","page_number":90,"box":{"x":68,"y":407,"width":833,"height":12}},{"id":"59fc527f-01d8-4036-a2e3-cafde7285753","block_type":"box","text":"insurance and guarantees are issued by governmental entities, private insurers and the mortgage poolers. The","page_number":90,"box":{"x":70,"y":423,"width":789,"height":11}},{"id":"5c17ac58-51b7-4573-b018-81439afec788","block_type":"box","text":"insurance and guarantees and the creditworthiness of the issuers thereof will be considered in determining whether","page_number":90,"box":{"x":70,"y":438,"width":827,"height":11}},{"id":"2e27b188-4a20-4352-be73-b879c3defaf2","block_type":"box","text":"a mortgage-related security meets a Fund’s investment quality standards. There can be no assurance that the private","page_number":90,"box":{"x":69,"y":453,"width":838,"height":11}},{"id":"14794048-55d1-4983-82cf-85c5eb15cce8","block_type":"box","text":"insurers or guarantors can meet their obligations under the insurance policies or guarantee arrangements. Private","page_number":90,"box":{"x":70,"y":468,"width":810,"height":11}},{"id":"8270e0e8-08f7-4bd6-a050-ba6d5b5eef1d","block_type":"box","text":"mortgage pass-through securities may be bought without insurance or guarantees if, through an examination of the","page_number":90,"box":{"x":69,"y":483,"width":820,"height":11}},{"id":"844de650-6cc3-4603-9b4c-28b47d716923","block_type":"box","text":"loan experience and practices of the originator/servicers and poolers, the Manager determines that the securities","page_number":90,"box":{"x":70,"y":498,"width":812,"height":11}},{"id":"dc32838f-0fb6-4ba1-b62d-82c6321a5cc2","block_type":"box","text":"meet a Fund’s quality standards. Any mortgage-related securities that are issued by private issuers have some","page_number":90,"box":{"x":69,"y":514,"width":790,"height":11}},{"id":"5762a16d-0c23-461c-a05f-e1dfbfa7dd33","block_type":"box","text":"exposure to subprime loans as well as to the mortgage and credit markets generally.","page_number":90,"box":{"x":69,"y":529,"width":604,"height":11}},{"id":"c0110dbd-ec59-4fa6-a892-0a44e44f4493","block_type":"box","text":"In addition, mortgage-related securities that are issued by private issuers are not subject to the underwriting","page_number":90,"box":{"x":102,"y":551,"width":774,"height":11}},{"id":"af6e1923-f901-41c7-b8a6-ffbbb952cee2","block_type":"box","text":"requirements for the underlying mortgages that are applicable to those mortgage-related securities that have a","page_number":90,"box":{"x":69,"y":566,"width":791,"height":11}},{"id":"51f751c8-63cc-4f9f-8cd0-28e0653fa5ad","block_type":"box","text":"government or government-sponsored entity guarantee. As a result, the mortgage loans underlying private mortgage","page_number":90,"box":{"x":68,"y":582,"width":832,"height":11}},{"id":"c28f4be0-ae46-40ef-b4cb-1140481d5cf8","block_type":"box","text":"related securities may, and frequently do, have less favorable collateral, credit risk or other underwriting","page_number":90,"box":{"x":69,"y":596,"width":742,"height":12}},{"id":"59ca4e15-3a07-4227-b6b5-740a15527626","block_type":"box","text":"characteristics than government or government-sponsored mortgage-related securities and have wider variances in a","page_number":90,"box":{"x":69,"y":612,"width":831,"height":11}},{"id":"fc160aad-ad79-49af-9736-647557678ac4","block_type":"box","text":"number of terms including interest rate, term, size, purpose and borrower characteristics. Privately issued pools more","page_number":90,"box":{"x":69,"y":627,"width":840,"height":11}},{"id":"407760ab-3f0f-40a8-b327-9d6edaa1cd2a","block_type":"box","text":"frequently include second mortgages, high loan-to-value mortgages and manufactured housing loans. The coupon","page_number":90,"box":{"x":68,"y":642,"width":809,"height":11}},{"id":"f96c0410-dc27-4ef0-aa3b-0b89893e1f62","block_type":"box","text":"rates and maturities of the underlying mortgage loans in a private-label mortgage-related securities pool may vary to","page_number":90,"box":{"x":69,"y":657,"width":828,"height":11}},{"id":"74a72917-f32a-42aa-b3d2-d3c42feaa5c1","block_type":"box","text":"a greater extent than those included in a government guaranteed pool, and the pool may include subprime mortgage","page_number":90,"box":{"x":69,"y":672,"width":830,"height":11}},{"id":"da9f9d72-5d7d-4856-81c5-203e24c035c1","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":90,"box":{"x":70,"y":687,"width":810,"height":11}},{"id":"8a6f043c-e762-4580-bfad-6c31394721f3","block_type":"box","text":"make timely payments on their loans. For these reasons, the loans underlying these securities have had in many","page_number":90,"box":{"x":69,"y":703,"width":804,"height":11}},{"id":"2ef2655a-bd16-41fb-983b-250acd7df3f3","block_type":"box","text":"cases higher default rates than those loans that meet government underwriting requirements.","page_number":90,"box":{"x":69,"y":717,"width":669,"height":12}},{"id":"1f35c054-1d67-4687-8cc0-02357c2ec938","block_type":"box","text":"The risk of non-payment is greater for mortgage-related securities that are backed by mortgage pools that","page_number":90,"box":{"x":101,"y":740,"width":754,"height":11}},{"id":"7b6b341b-9878-43c1-bdec-34972e3f2af7","block_type":"box","text":"contain subprime loans, but a level of risk exists for all loans. Market factors adversely affecting mortgage loan","page_number":90,"box":{"x":69,"y":755,"width":795,"height":11}},{"id":"a47ebdeb-8c23-46e9-b69f-88812496bf75","block_type":"box","text":"repayments may include a general economic turndown, high unemployment, a general slowdown in the real estate","page_number":90,"box":{"x":69,"y":771,"width":812,"height":11}},{"id":"3a9b9c70-188c-400b-a0a5-bd2e3d0a3eee","block_type":"box","text":"market, a drop in the market prices of real estate, or an increase in interest rates resulting in higher mortgage","page_number":90,"box":{"x":69,"y":785,"width":788,"height":12}},{"id":"feeaac3b-dc37-4306-ba6d-42963131fe19","block_type":"box","text":"payments by holders of adjustable rate mortgages.","page_number":90,"box":{"x":70,"y":801,"width":361,"height":11}},{"id":"c6228d41-336a-468b-9fad-2b539ddea239","block_type":"box","text":"Privately issued mortgage-related securities are not traded on an exchange and there may be a limited market","page_number":90,"box":{"x":102,"y":823,"width":784,"height":12}},{"id":"f96194c5-040f-4990-81ae-a2d4f235cb5d","block_type":"box","text":"for the securities, especially when there is a perceived weakness in the mortgage and real estate market sectors.","page_number":90,"box":{"x":68,"y":838,"width":813,"height":12}},{"id":"6d52b133-11af-42bf-9483-ba302ca81a4a","block_type":"box","text":"Without an active trading market, mortgage-related securities held in a Fund’s portfolio may be particularly difficult to","page_number":90,"box":{"x":68,"y":853,"width":837,"height":12}},{"id":"d2c779fe-a3da-449b-accc-aa1b53de8804","block_type":"box","text":"value because of the complexities involved in assessing the value of the underlying mortgage loans.","page_number":90,"box":{"x":68,"y":869,"width":714,"height":11}},{"id":"f0523f6c-392a-4f0a-a22f-013fdbd028aa","block_type":"box","text":"Collateralized Mor tgage Obligations (“CMOs”).","page_number":90,"box":{"x":102,"y":891,"width":328,"height":12}},{"id":"8f2df217-b6f6-4e5b-974a-f549f6057c82","block_type":"box","text":"CMOs are debt obligations collateralized by residential or","page_number":90,"box":{"x":437,"y":891,"width":407,"height":12}},{"id":"8298bc3b-ada9-42eb-b8c3-14ecefdc25b5","block_type":"box","text":"commercial mortgage loans or residential or commercial mortgage pass-through securities. Interest and prepaid","page_number":90,"box":{"x":69,"y":907,"width":800,"height":11}},{"id":"c4120de2-31ca-48e0-8c13-101efc430210","block_type":"box","text":"II-52","page_number":90,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b998666d-3bb1-4c5f-90e8-f10387663a27","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":90,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"afc67c70-a847-4fb9-ac24-b409db2612ff","block_type":"box","text":"principal are generally paid monthly. CMOs may be collateralized by whole mortgage loans or private mortgage pass","page_number":91,"box":{"x":70,"y":45,"width":827,"height":11}},{"id":"da8afc64-e4f0-4e17-93bf-af723b031925","block_type":"box","text":"through securities but are more typically collateralized by portfolios of mortgage pass-through securities guaranteed","page_number":91,"box":{"x":68,"y":60,"width":826,"height":11}},{"id":"5f87086a-0080-4a13-bf72-31b2b0ea59b1","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":91,"box":{"x":69,"y":75,"width":833,"height":11}},{"id":"988659d1-6c80-4179-bee0-838476e0cdaa","block_type":"box","text":"Mortgage Investment Conduit (“REMIC”). All future references to CMOs also include REMICs.","page_number":91,"box":{"x":70,"y":90,"width":661,"height":11}},{"id":"fec12340-c090-4a7e-92a3-78afadde9dde","block_type":"box","text":"CMOs are structured into multiple classes, often referred to as a “tranche,” each issued at a specific adjustable","page_number":91,"box":{"x":102,"y":113,"width":803,"height":11}},{"id":"a9defbb4-af1b-4cc1-8486-4d3f5b906a1c","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":91,"box":{"x":69,"y":128,"width":837,"height":11}},{"id":"dfcf2f21-d1fe-4dcf-8f94-4f290b1ba150","block_type":"box","text":"distribution date. Actual maturity and average life will depend upon the prepayment experience of the collateral, which","page_number":91,"box":{"x":69,"y":143,"width":838,"height":11}},{"id":"ca74a43e-97b4-49a9-a3dc-e951bbd0e9bc","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":91,"box":{"x":70,"y":158,"width":836,"height":11}},{"id":"a78cf402-b159-42ac-bc43-5c8e35c7e3ae","block_type":"box","text":"de facto breakdown of the underlying pool of mortgages according to how quickly the loans are repaid. Monthly","page_number":91,"box":{"x":69,"y":173,"width":791,"height":11}},{"id":"516f337f-5002-4a7f-a568-bef8bf7f389a","block_type":"box","text":"payment of principal received from the pool of underlying mortgages, including prepayments, is first returned to","page_number":91,"box":{"x":70,"y":188,"width":792,"height":12}},{"id":"fb95c9c1-1526-42c6-9b4a-f4027de02a50","block_type":"box","text":"investors holding the shortest maturity class. Investors holding the longer maturity classes usually receive principal","page_number":91,"box":{"x":70,"y":204,"width":820,"height":11}},{"id":"1b30d819-6bd3-4505-b03a-88526922cfbc","block_type":"box","text":"only after the first class has been retired. An investor may be partially protected against a sooner than desired return","page_number":91,"box":{"x":69,"y":218,"width":836,"height":12}},{"id":"0cccde7f-2efb-423b-be73-7a60664abe57","block_type":"box","text":"of principal because of the sequential payments.","page_number":91,"box":{"x":69,"y":234,"width":346,"height":11}},{"id":"9ef524cf-df14-4d5c-8adc-2f18dc5a957f","block_type":"box","text":"Certain issuers of CMOs are not considered investment companies pursuant to a rule adopted by the","page_number":91,"box":{"x":102,"y":256,"width":723,"height":11}},{"id":"ed53aac1-7ca3-4db6-96ab-8d2dc912a60b","block_type":"box","text":"Commission, and a Fund may invest in the securities of such issuers without the limitations imposed by the","page_number":91,"box":{"x":69,"y":271,"width":768,"height":12}},{"id":"dc8d354a-1168-42b1-b5b3-fa4cfc50382f","block_type":"box","text":"Investment Company Act on investments by a Fund in other investment companies. In addition, in reliance on an","page_number":91,"box":{"x":70,"y":287,"width":800,"height":11}},{"id":"05d06344-6b8b-401e-b580-89194a09cd0d","block_type":"box","text":"earlier Commission interpretation, a Fund’s investments in certain other qualifying CMOs, which cannot or do not rely","page_number":91,"box":{"x":69,"y":302,"width":836,"height":11}},{"id":"6701ba9a-ad51-4108-9b67-a6bda7d1011c","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":91,"box":{"x":69,"y":317,"width":793,"height":11}},{"id":"2ff9554a-7370-48d6-bf1d-997202feb37e","block_type":"box","text":"investment companies. In order to be able to rely on the Commission’s interpretation, these CMOs must be","page_number":91,"box":{"x":70,"y":332,"width":767,"height":11}},{"id":"f8a9dd4a-4d13-40c0-9779-3be5b5cb7823","block_type":"box","text":"unmanaged, fixed asset issuers, that: (1) invest primarily in mortgage-backed securities; (2) do not issue redeemable","page_number":91,"box":{"x":69,"y":347,"width":838,"height":11}},{"id":"94dba1ab-ab79-40ea-904e-68ece31af001","block_type":"box","text":"securities; (3) operate under general exemptive orders exempting them from all provisions of the Investment","page_number":91,"box":{"x":69,"y":362,"width":773,"height":11}},{"id":"76d3251e-0d1d-4b60-ac2a-e8013ae5c162","block_type":"box","text":"Company Act; and (4) are not registered or regulated under the Investment Company Act as investment companies.","page_number":91,"box":{"x":69,"y":377,"width":821,"height":12}},{"id":"7a692292-f434-43b8-996b-f2566db27f51","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":91,"box":{"x":68,"y":392,"width":836,"height":12}},{"id":"b3f6edc4-8152-443b-bb5d-1c408cec160e","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":91,"box":{"x":69,"y":407,"width":795,"height":12}},{"id":"ee6ae4ff-ce4f-4eaf-af91-3e1470aa7917","block_type":"box","text":"securities of any single such entity.","page_number":91,"box":{"x":69,"y":423,"width":248,"height":11}},{"id":"0f19e11b-abcd-4306-8b8d-168eec77b80d","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":91,"box":{"x":101,"y":445,"width":807,"height":12}},{"id":"0a3eec18-0220-4437-8cfa-05da12417696","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":91,"box":{"x":69,"y":460,"width":805,"height":12}},{"id":"08ada9d0-7043-45a8-8f8f-12850e0d581b","block_type":"box","text":"concurrently on a proportionate or disproportionate basis. These simultaneous payments are taken into account in","page_number":91,"box":{"x":69,"y":476,"width":819,"height":11}},{"id":"890c0443-79b6-4d23-9292-333345cba367","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":91,"box":{"x":69,"y":491,"width":829,"height":11}},{"id":"e5e3e321-1dd1-4502-9467-cbbeb6864a29","block_type":"box","text":"a time while paying interest to several classes. A wide variety of REMIC Certificates may be issued in the parallel pay","page_number":91,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"656dff50-244a-4002-8f82-a4d640719caa","block_type":"box","text":"or sequential pay structures. These securities include accrual certificates (also known as “Z-Bonds”), which only","page_number":91,"box":{"x":69,"y":521,"width":802,"height":11}},{"id":"20c3fcf5-4644-4598-8d09-06b064e2f359","block_type":"box","text":"accrue interest at a specified rate until all other certificates having an earlier final distribution date have been retired","page_number":91,"box":{"x":69,"y":536,"width":833,"height":11}},{"id":"5963a0b0-c2ff-43cb-a6c4-3488c7d07282","block_type":"box","text":"and are converted thereafter to an interest-paying security. Floating rate CMOs are securities whose coupon rate","page_number":91,"box":{"x":69,"y":551,"width":801,"height":11}},{"id":"fa3dc6cc-9001-4d55-b1dd-6dd71cea0f3b","block_type":"box","text":"fluctuates according to some formula related to an existing market index or rate. Typical indices would include the","page_number":91,"box":{"x":68,"y":566,"width":813,"height":11}},{"id":"3c38fb0e-0f45-47d8-b675-0c01d419bdfc","block_type":"box","text":"eleventh district cost-of-funds index (“COFI”), one-year Treasury yields, and ten-year Treasury yields.","page_number":91,"box":{"x":69,"y":581,"width":708,"height":11}},{"id":"d1da8753-fd84-48c6-8bd4-32dc44c28fa8","block_type":"box","text":"Classes of CMOs also include planned amortization classes (“PACs”) and targeted amortization classes","page_number":91,"box":{"x":102,"y":604,"width":742,"height":11}},{"id":"be2154e2-67f8-4c2d-a05d-ae20cafe3e1c","block_type":"box","text":"(“TACs”). PAC bonds generally require payments of a specified amount of principal on each payment date. The","page_number":91,"box":{"x":69,"y":619,"width":784,"height":11}},{"id":"6f0cbbb2-520d-4d2f-96fe-666692b46119","block_type":"box","text":"scheduled principal payments for PAC Certificates generally have the highest priority on each payment date after","page_number":91,"box":{"x":69,"y":634,"width":800,"height":12}},{"id":"f94f2eeb-83dc-46f6-92d3-d8021b795302","block_type":"box","text":"interest due has been paid to all classes entitled to receive interest currently. Shortfalls, if any, are added to the","page_number":91,"box":{"x":70,"y":649,"width":802,"height":12}},{"id":"4279d509-c671-4317-bc20-5a77fd3e80f4","block_type":"box","text":"amount payable on the next payment date. The PAC Certificate payment schedule is taken into account in calculating","page_number":91,"box":{"x":69,"y":664,"width":834,"height":12}},{"id":"9f5877c4-be04-48ca-8b9a-e58515ca02e3","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":91,"box":{"x":68,"y":680,"width":835,"height":11}},{"id":"b25d1aa4-d661-4c85-b9a0-86baea9e92f1","block_type":"box","text":"be created that absorb most of the volatility in the underlying mortgage assets. These tranches (often called","page_number":91,"box":{"x":69,"y":695,"width":772,"height":11}},{"id":"4a648628-9c78-4b19-8dd9-2c8b8fdca021","block_type":"box","text":"“supports” or “companion” tranches) tend to have market prices and yields that are more volatile than the PAC","page_number":91,"box":{"x":70,"y":710,"width":792,"height":11}},{"id":"1e94c894-6b23-4a1c-a1dd-a15ccfd5daef","block_type":"box","text":"classes.","page_number":91,"box":{"x":69,"y":725,"width":57,"height":9}},{"id":"a047f180-2a4e-46d8-8ef1-b37dd3ffff9c","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":91,"box":{"x":101,"y":748,"width":774,"height":11}},{"id":"da9cfee2-f2ef-4151-abd7-ee473b9ecee1","block_type":"box","text":"date to one or more classes of REMIC Certificates. A PAC’s payment schedule, however, remains in effect as long as","page_number":91,"box":{"x":69,"y":763,"width":835,"height":11}},{"id":"29f406c7-e67a-46f3-b948-ebb33705e0b4","block_type":"box","text":"prepayment rates on the underlying mortgages do not exceed certain ranges. In contrast, a TAC provides investors","page_number":91,"box":{"x":70,"y":778,"width":815,"height":11}},{"id":"605626a2-8c3a-4e06-9990-3fde124ebaa3","block_type":"box","text":"with protection, to a certain level, against either faster than expected or slower than expected prepayment rates, but","page_number":91,"box":{"x":68,"y":793,"width":833,"height":11}},{"id":"e5dd4111-fe15-4faf-8c35-68af61d08c42","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":91,"box":{"x":69,"y":808,"width":839,"height":11}},{"id":"4746d5fe-141a-4463-933d-f9a3d2c378ba","block_type":"box","text":"also tend to have market prices and yields that are more volatile than PACs.","page_number":91,"box":{"x":69,"y":823,"width":541,"height":11}},{"id":"c69ed31d-ff8d-448b-a142-f4064fb27073","block_type":"box","text":"Adjustable Rate Mor tgage Securities.","page_number":91,"box":{"x":101,"y":846,"width":265,"height":11}},{"id":"120b1fea-d1ea-4893-9b16-fe07c598ffab","block_type":"box","text":"Adjustable rate mortgage securities (“ARMs”) are pass-through securities","page_number":91,"box":{"x":372,"y":846,"width":523,"height":11}},{"id":"83037031-a740-449d-bf72-9f7a826e79ee","block_type":"box","text":"collateralized by mortgages with adjustable rather than fixed rates. ARMs eligible for inclusion in a mortgage pool","page_number":91,"box":{"x":69,"y":861,"width":807,"height":11}},{"id":"8fc391e8-67b1-4a1f-aa86-69fe38efaf3d","block_type":"box","text":"generally provide for a fixed initial mortgage interest rate for a set number of scheduled monthly payments. After that","page_number":91,"box":{"x":68,"y":876,"width":835,"height":11}},{"id":"fc428918-10f3-47d0-8fbe-847613663057","block_type":"box","text":"schedule of payments has been completed, the interest rates are subject to periodic adjustment based on changes","page_number":91,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"4212d199-0381-4fcb-9601-67ab840bb438","block_type":"box","text":"to a designated benchmark index.","page_number":91,"box":{"x":68,"y":907,"width":241,"height":11}},{"id":"08763cd9-7f46-405c-8e81-6cac17d08cb8","block_type":"box","text":"II-53","page_number":91,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b924ec50-6753-4f89-be0f-9ee4ce002883","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":91,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7bb30b13-e2bf-4ab2-93e9-a77bc581825d","block_type":"box","text":"ARMs contain maximum and minimum rates beyond which the mortgage interest rate may not vary over the","page_number":92,"box":{"x":101,"y":45,"width":767,"height":11}},{"id":"b3e27f50-2c0e-4666-95b6-a3c7c134ea23","block_type":"box","text":"lifetime of the security. In addition, certain ARMs provide for additional limitations on the maximum amount by which","page_number":92,"box":{"x":70,"y":60,"width":828,"height":11}},{"id":"88ab5b72-0a8a-4598-823b-aa5493a46b42","block_type":"box","text":"the mortgage interest rate may adjust for any single adjustment period. In the event that market rates of interest rise","page_number":92,"box":{"x":68,"y":75,"width":837,"height":11}},{"id":"76211907-f2fd-4907-96a8-b50b135efc3d","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":92,"box":{"x":69,"y":90,"width":830,"height":11}},{"id":"8736b1b4-5703-448a-bdb3-880dcbade911","block_type":"box","text":"of interest. In these circumstances, the market value of the ARM security will likely have fallen.","page_number":92,"box":{"x":69,"y":105,"width":676,"height":11}},{"id":"9d4a93ed-ae85-40ba-a967-7837b5bbd636","block_type":"box","text":"Certain ARMs contain limitations on changes in the required monthly payment. In the event that a monthly","page_number":92,"box":{"x":102,"y":128,"width":757,"height":11}},{"id":"d277c26a-e43e-423f-84df-0f60e9054b50","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":92,"box":{"x":70,"y":143,"width":822,"height":11}},{"id":"848f795e-af21-4ce9-844c-0db86d6c79ec","block_type":"box","text":"balance of the mortgage loan, which is repaid through future monthly payments. If the monthly payment for such an","page_number":92,"box":{"x":69,"y":158,"width":823,"height":11}},{"id":"9d64b326-2b10-480a-b87d-4c445aab8dd5","block_type":"box","text":"instrument exceeds the sum of the interest accrued at the applicable mortgage interest rate and the principal","page_number":92,"box":{"x":70,"y":173,"width":782,"height":11}},{"id":"acb1cfd6-87bd-4fe5-a5ed-93e253f197fd","block_type":"box","text":"payment required at such point to amortize the outstanding principal balance over the remaining term of the loan, the","page_number":92,"box":{"x":70,"y":188,"width":838,"height":12}},{"id":"581b28f7-ca7f-459b-8c86-74642d5b2cab","block_type":"box","text":"excess is then used to reduce the outstanding principal balance of the ARM.","page_number":92,"box":{"x":69,"y":203,"width":544,"height":12}},{"id":"4d1f984d-d8b1-4dcb-b11c-8a51143a9c3b","block_type":"box","text":"CMO Residuals.","page_number":92,"box":{"x":102,"y":226,"width":112,"height":9}},{"id":"863b208a-150e-4f42-b307-dc6513ba652e","block_type":"box","text":"CMO residuals are derivative mortgage securities issued by agencies or instrumentalities of the","page_number":92,"box":{"x":221,"y":226,"width":682,"height":11}},{"id":"75b9f45d-cd30-4d37-80fe-3ebf37da63a4","block_type":"box","text":"U.S. Government or by private originators of, or investors in, mortgage loans, including savings and loan","page_number":92,"box":{"x":70,"y":241,"width":740,"height":11}},{"id":"7f3afeaf-441b-49a7-8840-61dab27e1ca9","block_type":"box","text":"associations, homebuilders, mortgage banks, commercial banks, investment banks, and special purpose entities of","page_number":92,"box":{"x":69,"y":256,"width":829,"height":12}},{"id":"dd9cca20-4d51-4a58-8613-0ad88213906f","block_type":"box","text":"the foregoing. The cash flow generated by the mortgage assets underlying a series of CMOs is applied first to make","page_number":92,"box":{"x":68,"y":271,"width":826,"height":12}},{"id":"ca55d37c-9651-4282-9735-01c4ae511b7f","block_type":"box","text":"required payments of principal and interest on the CMOs and second to pay the related administrative expenses and","page_number":92,"box":{"x":69,"y":286,"width":831,"height":12}},{"id":"5b12adff-cc52-4608-ad77-ed2f0ec59542","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":92,"box":{"x":69,"y":302,"width":827,"height":11}},{"id":"feb4e557-f532-4d9b-b8c0-1482a4dd2ee8","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":92,"box":{"x":69,"y":317,"width":829,"height":11}},{"id":"3dfe9fa3-f2be-4c2e-b0a8-20c0714b5251","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":92,"box":{"x":69,"y":332,"width":838,"height":11}},{"id":"6a31f99b-444b-4a4b-9d06-8518572a75a7","block_type":"box","text":"CMO will depend on, among other things, the characteristics of the mortgage assets, the coupon rate of each class","page_number":92,"box":{"x":69,"y":347,"width":825,"height":11}},{"id":"4400bafc-7edf-434b-89e5-af18fb9c71b5","block_type":"box","text":"of CMO, prevailing interest rates, the amount of administrative expenses and the prepayment experience on the","page_number":92,"box":{"x":69,"y":362,"width":798,"height":11}},{"id":"09ab73e3-a5c9-4ad5-83c6-2f10c3477465","block_type":"box","text":"mortgage assets. In part, the yield to maturity on the CMO residuals is extremely sensitive to prepayments on the","page_number":92,"box":{"x":69,"y":377,"width":813,"height":12}},{"id":"b6bd9d30-f092-42f2-a3c5-f6bd1a554fc6","block_type":"box","text":"related underlying mortgage assets, in the same manner as an interest-only class of stripped mortgage-related","page_number":92,"box":{"x":69,"y":392,"width":790,"height":12}},{"id":"a46d8362-4d7d-43f9-a848-bf12bd2c91b1","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":92,"box":{"x":69,"y":407,"width":805,"height":12}},{"id":"385525f2-0c26-447a-a4b5-1b22e75b1c1b","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":92,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"eb853730-cfe2-4fb6-978e-bef16f2ab43d","block_type":"box","text":"interest rate adjustments are based. In certain circumstances, a Fund may fail to recoup fully its initial investment in","page_number":92,"box":{"x":70,"y":438,"width":831,"height":11}},{"id":"dc8765b1-808f-4bc6-9042-b4c4d1f3cf07","block_type":"box","text":"a CMO residual.","page_number":92,"box":{"x":69,"y":453,"width":112,"height":9}},{"id":"e8e43be6-9c5a-4b44-82a6-00a8c28516e6","block_type":"box","text":"CMO residuals are generally purchased and sold by institutional investors through one or more investment","page_number":92,"box":{"x":102,"y":476,"width":758,"height":11}},{"id":"129a1817-5b85-42c9-91de-f971fc50c19f","block_type":"box","text":"banking firms acting as brokers or dealers. Transactions in CMO residuals are generally completed only after careful","page_number":92,"box":{"x":69,"y":491,"width":827,"height":11}},{"id":"832303d5-4501-4869-81b1-e1d5ce65469f","block_type":"box","text":"review of the characteristics of the securities in question. In addition, CMO residuals may or, pursuant to an","page_number":92,"box":{"x":69,"y":506,"width":769,"height":11}},{"id":"b1224c73-da51-4ea7-b1a4-f44e0e9f7593","block_type":"box","text":"exemption therefrom, may not have been registered under the Securities Act. Residual interests generally are junior","page_number":92,"box":{"x":69,"y":521,"width":825,"height":11}},{"id":"d6085c91-d01e-4e87-9500-7f18f0aed77a","block_type":"box","text":"to, and may be significantly more volatile than, “regular” CMO and REMIC interests. CMO residuals, whether or not","page_number":92,"box":{"x":68,"y":536,"width":820,"height":11}},{"id":"1efeeb0c-58d7-438d-b812-8668a7c59938","block_type":"box","text":"registered under the Securities Act, may be subject to certain restrictions on transferability.","page_number":92,"box":{"x":69,"y":551,"width":650,"height":11}},{"id":"1e32fe69-5a6d-47eb-9dd9-755c5cf1694a","block_type":"box","text":"Stripped Mor tgage-Backed Securities.","page_number":92,"box":{"x":102,"y":574,"width":267,"height":11}},{"id":"08a8514f-6fd4-4b18-a4fd-5ed79eb3b38b","block_type":"box","text":"A Fund may invest in stripped mortgage-backed securities (“SMBSs”)","page_number":92,"box":{"x":375,"y":574,"width":493,"height":11}},{"id":"9eb37191-2533-4967-a3c9-77ff2e5e4002","block_type":"box","text":"issued by agencies or instrumentalities of the United States. SMBSs are derivative multi-class mortgage-backed","page_number":92,"box":{"x":70,"y":589,"width":798,"height":11}},{"id":"7297685e-07a5-4d78-8571-b461cbd0acd7","block_type":"box","text":"securities. SMBS arrangements commonly involve two classes of securities that receive different proportions of the","page_number":92,"box":{"x":69,"y":604,"width":826,"height":11}},{"id":"e6d737b7-a1e8-46c3-ab2c-3aa90eeb0b35","block_type":"box","text":"interest and principal distributions on a pool of mortgage assets. A common variety of SMBS is where one class (the","page_number":92,"box":{"x":70,"y":619,"width":832,"height":11}},{"id":"6e693cfb-d0f5-486b-978c-5db95fcd0243","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":92,"box":{"x":70,"y":634,"width":821,"height":12}},{"id":"e5a6b0b6-7eed-4d08-9c1e-795268953b5c","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":92,"box":{"x":68,"y":649,"width":826,"height":12}},{"id":"cc8166a9-ad00-46b7-a61a-536485d574ba","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":92,"box":{"x":69,"y":664,"width":822,"height":11}},{"id":"eaeb8652-a233-49e0-a393-34e5b9176b55","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":92,"box":{"x":70,"y":680,"width":834,"height":11}},{"id":"5a0a9671-e6b6-41d8-9878-a0025ea5bdf4","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":92,"box":{"x":68,"y":695,"width":800,"height":11}},{"id":"7b77ac8b-be64-454c-8e5c-db66dead3bf7","block_type":"box","text":"related underlying assets, and a rapid rate of principal prepayments in excess of that considered in pricing the","page_number":92,"box":{"x":69,"y":710,"width":786,"height":11}},{"id":"87ad3e47-9961-41b9-b2fd-05682a8ac8d8","block_type":"box","text":"securities will have a material adverse effect on an IO security’s yield to maturity. If the underlying mortgage assets","page_number":92,"box":{"x":69,"y":725,"width":823,"height":11}},{"id":"e6e8aa4d-6eab-40df-b6b6-32ef83a6b71f","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":92,"box":{"x":69,"y":740,"width":832,"height":11}},{"id":"043e0a77-888d-4ac4-8f7c-56768ad6199a","block_type":"box","text":"In addition, there are certain types of IOs that represent the interest portion of a particular class as opposed to the","page_number":92,"box":{"x":70,"y":755,"width":824,"height":11}},{"id":"9d8be5b8-0bdf-4df2-8789-101edc05009d","block_type":"box","text":"interest portion of the entire pool. The sensitivity of this type of IO to interest rate fluctuations may be increased","page_number":92,"box":{"x":70,"y":770,"width":800,"height":11}},{"id":"cbad9312-3dab-4eae-87e1-3360adc930b0","block_type":"box","text":"because of the characteristics of the principal portion to which they relate. As a result of the above factors, a Fund","page_number":92,"box":{"x":69,"y":785,"width":818,"height":12}},{"id":"dc1df47f-5a14-4d6f-b3f2-6f3ba39b093a","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":92,"box":{"x":68,"y":801,"width":840,"height":11}},{"id":"fd28ebff-98ce-4182-b1d3-68fa40173a51","block_type":"box","text":"will be matched with certain purchases of other securities, such as POs, inverse floating rate CMOs or fixed rate","page_number":92,"box":{"x":68,"y":816,"width":802,"height":11}},{"id":"e17db384-30c6-4cee-89af-49873e359c4a","block_type":"box","text":"securities; as interest rates fall, presenting a greater risk of unanticipated prepayments of principal, the negative","page_number":92,"box":{"x":69,"y":831,"width":805,"height":11}},{"id":"371ab6d8-260d-4c44-a17c-fe22b260a319","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":92,"box":{"x":69,"y":846,"width":814,"height":11}},{"id":"b6ce039c-9a9b-4cb4-a1b5-03a9b0330073","block_type":"box","text":"the inverse floating rate CMOs or the increased appreciation on the POs or fixed rate securities.","page_number":92,"box":{"x":68,"y":861,"width":683,"height":11}},{"id":"2acc9519-6286-430d-9446-46bd8f0c8e22","block_type":"box","text":"Tiered Index Bonds.","page_number":92,"box":{"x":103,"y":884,"width":138,"height":9}},{"id":"e5c98680-5c25-4f25-a9fc-8da848998853","block_type":"box","text":"Tiered index bonds are forms of mortgage-related securities. The interest rate on a tiered","page_number":92,"box":{"x":247,"y":884,"width":638,"height":11}},{"id":"0eadc9dc-a976-480f-9dff-64790d276f76","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":92,"box":{"x":70,"y":899,"width":825,"height":11}},{"id":"3b615927-36e0-471b-82b0-0065cb344a64","block_type":"box","text":"II-54","page_number":92,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"def5408b-85ed-4b4d-a1eb-1e60c86dad02","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":92,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"164fac5f-3315-441a-bb4c-f019921c09c3","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":93,"box":{"x":70,"y":45,"width":827,"height":11}},{"id":"aee098da-ac17-4815-a40e-379231ff8ba1","block_type":"box","text":"rises above the “strike” rate, the interest rate of the tiered index bond will decrease. Thus, under these","page_number":93,"box":{"x":69,"y":60,"width":738,"height":10}},{"id":"29380f5a-3145-4e1c-95da-c2f81db9363f","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":93,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"2f51fa48-903e-49bc-ae2d-3e7f7aea075d","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":93,"box":{"x":70,"y":90,"width":836,"height":11}},{"id":"2cf1ebfe-f90e-4e40-929b-04932e5e7e9b","block_type":"box","text":"that of a fixed-rate bond.","page_number":93,"box":{"x":68,"y":105,"width":174,"height":9}},{"id":"61becba4-fb20-4fb2-99fc-f0a1ce76710d","block_type":"box","text":"TBA Commitments.","page_number":93,"box":{"x":103,"y":128,"width":133,"height":9}},{"id":"4e61dce6-29e6-4f09-b6e7-13033d512b5a","block_type":"box","text":"Certain Funds may enter into “to be announced” or “TBA” commitments. TBA commitments","page_number":93,"box":{"x":243,"y":128,"width":653,"height":11}},{"id":"f0b28d89-c0e7-4f69-94bb-4f4fcd7a9c47","block_type":"box","text":"are forward agreements for the purchase or sale of securities, including mortgage-backed securities for a fixed price,","page_number":93,"box":{"x":69,"y":143,"width":834,"height":11}},{"id":"0a6889f6-5c96-4ba1-b213-c202dc90adc2","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":93,"box":{"x":68,"y":158,"width":825,"height":11}},{"id":"e74f4d5c-268f-4b06-9237-819394106a0c","block_type":"box","text":"identified at the trade date. However, delivered securities must meet specified terms, including issuer, rate and","page_number":93,"box":{"x":70,"y":173,"width":793,"height":11}},{"id":"b37ca53a-1c8c-4b6c-b8a8-dedf01dd3576","block_type":"box","text":"mortgage terms. When the Fund enters into a TBA commitment for the sale of mortgage-backed securities for a fixed","page_number":93,"box":{"x":69,"y":188,"width":833,"height":12}},{"id":"655d81f1-2a99-4999-a308-440bcafc087f","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":93,"box":{"x":70,"y":203,"width":804,"height":12}},{"id":"f1c5febd-7ee2-440d-8345-b9aa1ba47de0","block_type":"box","text":"short position in such TBA securities), the Fund may or may not hold the types of mortgage-backed securities","page_number":93,"box":{"x":69,"y":218,"width":779,"height":12}},{"id":"5a26642a-bf81-4fdc-9a78-4661a96c3a98","block_type":"box","text":"required to be delivered. See “—When-Issued Securities, Delayed Delivery Securities and Forward Commitments”","page_number":93,"box":{"x":69,"y":234,"width":810,"height":11}},{"id":"bf4606ef-957f-4d44-bd02-883d6ef64d54","block_type":"box","text":"below.","page_number":93,"box":{"x":69,"y":249,"width":43,"height":9}},{"id":"11d4af13-3a49-498b-acd0-ee6b7af61bab","block_type":"box","text":"Mor tgage Dollar Rolls.","page_number":93,"box":{"x":102,"y":272,"width":157,"height":11}},{"id":"0f3b7119-8fdb-416d-b797-c4c220b50804","block_type":"box","text":"Certain Funds may invest in mortgage dollar rolls. In a mortgage dollar roll transaction, a","page_number":93,"box":{"x":266,"y":272,"width":634,"height":11}},{"id":"c533009b-dcaf-4f9d-b63e-8328f72a6f1f","block_type":"box","text":"Fund sells mortgage-backed securities for delivery in the current month and simultaneously contracts to repurchase","page_number":93,"box":{"x":70,"y":286,"width":825,"height":12}},{"id":"0e4c114a-a07d-4580-af3a-001f9c444023","block_type":"box","text":"substantially similar securities on a specified future date. The securities that are repurchased will bear the same","page_number":93,"box":{"x":69,"y":302,"width":805,"height":11}},{"id":"8bdaff26-89f2-4f2e-b5bb-5b47d4878575","block_type":"box","text":"interest rate and a similar maturity as those sold, but pools of mortgages collateralizing those securities may have","page_number":93,"box":{"x":70,"y":317,"width":817,"height":11}},{"id":"6484d4ec-a5a2-4105-a069-928c97c30aa4","block_type":"box","text":"different prepayment histories than those sold. During the period between the sale and repurchase, a Fund will not","page_number":93,"box":{"x":69,"y":332,"width":820,"height":11}},{"id":"16f9b207-860b-4d1e-aeb4-5b6e35dc8e55","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":93,"box":{"x":69,"y":347,"width":827,"height":11}},{"id":"67224621-53ab-4086-b772-43ad7eeac340","block_type":"box","text":"additional instruments for the Fund, and the income from these investments will generate income for the Fund. If","page_number":93,"box":{"x":69,"y":362,"width":806,"height":11}},{"id":"5b2e2dd9-8819-4a04-88c2-8bd1f48fe7bb","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":93,"box":{"x":69,"y":377,"width":833,"height":12}},{"id":"483b2730-99b0-482d-8420-2f33d9d3db16","block_type":"box","text":"securities sold as part of the dollar roll, the use of this technique will diminish the investment performance of a Fund","page_number":93,"box":{"x":69,"y":392,"width":836,"height":11}},{"id":"70e71a66-160c-4730-b9b8-d9221d79ceb6","block_type":"box","text":"compared with what the performance would have been without the use of dollar rolls.","page_number":93,"box":{"x":69,"y":407,"width":607,"height":11}},{"id":"1e09212d-17a7-4806-9e5d-776c01493234","block_type":"box","text":"Each mortgage dollar roll transaction is accounted for as a sale or purchase of a portfolio security and a","page_number":93,"box":{"x":102,"y":430,"width":744,"height":11}},{"id":"c3696450-5edb-4a71-9e1d-ecf806afaa48","block_type":"box","text":"subsequent purchase or sale of a substantially similar security in the forward market. Transactions in mortgage","page_number":93,"box":{"x":69,"y":445,"width":796,"height":12}},{"id":"f9e1a6ab-3eb1-41fa-be42-0b714e3d29b6","block_type":"box","text":"dollar rolls may increase trading costs and portfolio turnover.","page_number":93,"box":{"x":69,"y":460,"width":433,"height":12}},{"id":"9ddc2f5e-aaed-42b9-84e0-e0cfbdd77101","block_type":"box","text":"In the event the buyer of the securities under a mortgage dollar roll files for bankruptcy or becomes insolvent, a","page_number":93,"box":{"x":102,"y":483,"width":795,"height":11}},{"id":"6daab5b0-6240-43f9-b3c3-346a51e2ab35","block_type":"box","text":"Fund’s use of the proceeds of the current sale portion of the transaction may be restricted pending a determination","page_number":93,"box":{"x":70,"y":498,"width":824,"height":11}},{"id":"b5554898-73a2-48b8-88cf-d13645b4931a","block_type":"box","text":"by the other party, or its trustee or receiver, whether to enforce the Fund’s obligation to purchase the similar","page_number":93,"box":{"x":69,"y":513,"width":774,"height":12}},{"id":"d08ae58d-d329-4dda-815f-9aa52b1ad776","block_type":"box","text":"securities in the forward transaction.","page_number":93,"box":{"x":69,"y":528,"width":261,"height":9}},{"id":"06a0b20a-f64e-41db-ae2b-7fe396e8d9cd","block_type":"box","text":"A Fund may engage in dollar roll transactions to enhance returns. Successful use of mortgage dollar rolls may","page_number":93,"box":{"x":101,"y":551,"width":785,"height":11}},{"id":"22a80004-9b45-48ce-84a6-6d1119c7194e","block_type":"box","text":"depend upon the Manager’s ability to correctly predict interest rates and prepayments. Dollar rolls involve the risk","page_number":93,"box":{"x":69,"y":566,"width":812,"height":11}},{"id":"2bd21ab4-fe5f-4e23-8e36-39a4c855abc5","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":93,"box":{"x":68,"y":581,"width":824,"height":11}},{"id":"674badd0-7b05-4f04-8df0-882d97158338","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":93,"box":{"x":69,"y":596,"width":824,"height":12}},{"id":"d78cadb3-1d12-4054-b976-63c7bd1b7d95","block_type":"box","text":"of the forward commitment. Dollar rolls are speculative techniques that can be deemed to involve leverage. There is","page_number":93,"box":{"x":69,"y":612,"width":828,"height":11}},{"id":"df6665e2-f6d0-402a-b57d-6643677c4355","block_type":"box","text":"no assurance that dollar rolls can be successfully employed.","page_number":93,"box":{"x":69,"y":627,"width":430,"height":11}},{"id":"d55a6893-6ed3-4270-9e25-e3f31eadd98c","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":93,"box":{"x":102,"y":649,"width":759,"height":12}},{"id":"3f24c451-c2fe-479a-b841-13ca9dd9e108","block_type":"box","text":"securities (","page_number":93,"box":{"x":69,"y":665,"width":78,"height":11}},{"id":"e091faef-b8ee-44e7-a797-33399b5a5702","block_type":"box","text":"e.g.","page_number":93,"box":{"x":148,"y":666,"width":25,"height":10}},{"id":"0944eb0b-798e-44cf-8538-a34fd2237589","block_type":"box","text":", dollar rolls and firm and standby commitments, including TBA commitments) and non-standard","page_number":93,"box":{"x":176,"y":664,"width":681,"height":12}},{"id":"6199c375-1ddb-4fa4-a2f9-5f93ef178881","block_type":"box","text":"settlement cycle securities notwithstanding the limitation on the issuance of senior securities in Section 18 of the","page_number":93,"box":{"x":69,"y":680,"width":813,"height":11}},{"id":"2e5bdaf8-930b-4922-98d9-9b5fa255b8a6","block_type":"box","text":"Investment Company Act, provided that the transaction meets the Delayed-Settlement Securities Provision (as","page_number":93,"box":{"x":70,"y":695,"width":783,"height":11}},{"id":"28054f2c-4ba5-4efb-8d7d-2d5700f16e1f","block_type":"box","text":"defined below under “—When-Issued Securities, Delayed Delivery Securities and Forward Commitments”). If a when","page_number":93,"box":{"x":69,"y":710,"width":832,"height":11}},{"id":"53a5432a-96e9-415d-8881-ff0e2fddabc3","block_type":"box","text":"issued, forward-settling or non-standard settlement cycle security does not satisfy the Delayed-Settlement Securities","page_number":93,"box":{"x":70,"y":725,"width":830,"height":11}},{"id":"079369dd-d007-447e-9854-25ce773d79a2","block_type":"box","text":"Provision, then it is treated as a Derivatives Transaction under Rule 18f-4. See “—Derivatives — Regulation of","page_number":93,"box":{"x":69,"y":740,"width":788,"height":11}},{"id":"dc78ab80-4adf-4676-80b4-f9baa61a58e3","block_type":"box","text":"Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":93,"box":{"x":70,"y":755,"width":489,"height":11}},{"id":"3e69bd8c-ba39-4aaf-8a3f-f7e0df2886c1","block_type":"box","text":"Net Interest Margin (NIM) Securities.","page_number":93,"box":{"x":102,"y":778,"width":260,"height":11}},{"id":"3ba60bf8-3c03-4368-a16b-893ff6b111ce","block_type":"box","text":"A Fund may invest in net interest margin (“NIM”) securities. These","page_number":93,"box":{"x":368,"y":778,"width":473,"height":11}},{"id":"31789512-d4bd-41dd-8cf1-29f8aa78c066","block_type":"box","text":"securities are derivative interest-only mortgage securities structured off home equity loan transactions. NIM","page_number":93,"box":{"x":69,"y":793,"width":768,"height":11}},{"id":"68b4dbd2-97b5-4ca9-8dda-4b67aa7f89b1","block_type":"box","text":"securities receive any “excess” interest computed after paying coupon costs, servicing costs and fees and any credit","page_number":93,"box":{"x":69,"y":808,"width":836,"height":11}},{"id":"9bf1798c-69c2-4976-9daa-24a752691f56","block_type":"box","text":"losses associated with the underlying pool of home equity loans. Like traditional stripped mortgage-backed","page_number":93,"box":{"x":70,"y":823,"width":760,"height":12}},{"id":"4367465a-7ca0-4318-9407-d888a72ed6e0","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":93,"box":{"x":69,"y":839,"width":832,"height":11}},{"id":"158a9fa4-b037-4ba6-8f56-9a57bdb12560","block_type":"box","text":"to the rate of principal payments (including prepayments) on the underlying home equity loans. NIM securities are","page_number":93,"box":{"x":68,"y":853,"width":810,"height":12}},{"id":"3ee9cb38-11d8-4b8f-9b45-7c2695cca54c","block_type":"box","text":"highly sensitive to credit losses on the underlying collateral and the timing in which those losses are taken.","page_number":93,"box":{"x":69,"y":869,"width":764,"height":11}},{"id":"abb31aa6-e332-4d15-96dd-eb927de1359e","block_type":"box","text":"Municipal Investments.","page_number":93,"box":{"x":102,"y":891,"width":169,"height":11}},{"id":"0b4058c6-1919-4e0f-a58c-9b56832cd7e4","block_type":"box","text":"II-55","page_number":93,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"58591e8e-157e-422b-bce0-2ca7a9dc1b3d","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":93,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"bbcbc59c-1e35-42ac-8102-d8c9aa74f82a","block_type":"box","text":"Certain Funds may invest in obligations issued by or on behalf of states, territories and possessions of the","page_number":94,"box":{"x":102,"y":45,"width":763,"height":11}},{"id":"71ca251c-6850-4130-9d79-9df97ab51374","block_type":"box","text":"United States and the District of Columbia and their political subdivisions, agencies and instrumentalities, the","page_number":94,"box":{"x":70,"y":60,"width":783,"height":11}},{"id":"962e4795-ca55-4b47-a915-2a53877ba24d","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":94,"box":{"x":70,"y":75,"width":833,"height":11}},{"id":"42938dac-fdf7-456c-b077-8221e74420b0","block_type":"box","text":"income tax purposes (“Municipal Bonds”). Certain of the Municipal Funds may also invest in Municipal Bonds that","page_number":94,"box":{"x":70,"y":90,"width":813,"height":11}},{"id":"12fcf657-726e-4c25-8442-e8d3ad70ad55","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":94,"box":{"x":70,"y":105,"width":836,"height":11}},{"id":"90baed3b-28f2-408b-8566-f889261dbc65","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":94,"box":{"x":69,"y":120,"width":779,"height":12}},{"id":"7d90b917-2a10-4eb8-b326-e065ad6d1921","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":94,"box":{"x":70,"y":135,"width":838,"height":11}},{"id":"bdfd3bdb-c3c1-4a0b-a6ed-037385bc9e13","block_type":"box","text":"or by an agency or instrumentality thereof, if the Manager believes such securities to pay interest excludable from","page_number":94,"box":{"x":69,"y":150,"width":810,"height":12}},{"id":"367ec64f-3176-4f20-be3d-6ab031ee9cbd","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":94,"box":{"x":68,"y":166,"width":834,"height":11}},{"id":"d9626e4f-0980-4154-9788-48201b4ec539","block_type":"box","text":"or state and local personal property taxes of the designated state (“Non-Municipal Tax-Exempt Securities”). Non","page_number":94,"box":{"x":69,"y":181,"width":801,"height":11}},{"id":"bd2147a1-73ac-4532-8fef-10976bbf00c3","block_type":"box","text":"Municipal Tax-Exempt Securities could include trust certificates or other instruments evidencing interest in one or","page_number":94,"box":{"x":70,"y":196,"width":807,"height":11}},{"id":"3b5f6ab5-5399-4752-99cb-3567e8afb6f6","block_type":"box","text":"more long-term municipal securities. Non-Municipal Tax-Exempt Securities also may include securities issued by other","page_number":94,"box":{"x":69,"y":211,"width":837,"height":11}},{"id":"fbf9ca68-c2d6-463b-9e22-a287da566655","block_type":"box","text":"investment companies that invest in municipal bonds, to the extent such investments are permitted by applicable","page_number":94,"box":{"x":70,"y":226,"width":809,"height":11}},{"id":"f495ae11-2a22-4d7c-a8fc-295afa448f4c","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":94,"box":{"x":70,"y":241,"width":826,"height":11}},{"id":"0f1bd016-740a-46ee-b628-7be18a5c212f","block_type":"box","text":"purposes will be considered “Municipal Bonds” for purposes of a Municipal Fund’s investment objective and policies.","page_number":94,"box":{"x":70,"y":256,"width":834,"height":11}},{"id":"3b85fc7e-d5ce-4210-aab7-5fe8ec8fe9e4","block_type":"box","text":"Non-Municipal Tax-Exempt Securities that pay interest excludable from gross income for purposes of U.S. federal","page_number":94,"box":{"x":70,"y":271,"width":800,"height":12}},{"id":"d005a7d1-9b57-4f84-8b8a-e642ee5e2df3","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":94,"box":{"x":70,"y":286,"width":819,"height":12}},{"id":"2e417420-7e96-43cf-b250-dae812c79ecb","block_type":"box","text":"exempt from state and local personal property taxes of that state will be considered “State Municipal Bonds” for","page_number":94,"box":{"x":69,"y":302,"width":805,"height":11}},{"id":"007c79a0-d033-421c-929a-4cf4b579f0b2","block_type":"box","text":"purposes of the investment objective and policies of each of California Municipal Opportunities Fund, New Jersey","page_number":94,"box":{"x":70,"y":317,"width":805,"height":11}},{"id":"f00fda4d-d4e6-4e68-ba36-551325a07ec2","block_type":"box","text":"Municipal Bond Fund, New York Municipal Opportunities Fund and Pennsylvania Municipal Bond Fund.","page_number":94,"box":{"x":70,"y":332,"width":721,"height":11}},{"id":"5ea4c461-52f1-4b0d-9416-dcf27d81e769","block_type":"box","text":"Risk Factors and Special Considerations Relating to Municipal Bonds.","page_number":94,"box":{"x":102,"y":355,"width":495,"height":11}},{"id":"320a72a4-8ba5-41f1-a7a0-6b7f0fa20d01","block_type":"box","text":"The risks and special considerations","page_number":94,"box":{"x":603,"y":355,"width":260,"height":11}},{"id":"b99943b2-0ba2-48da-86b3-75bec10fd6ef","block_type":"box","text":"involved in investment in Municipal Bonds vary with the types of instruments being acquired. Investments in Non","page_number":94,"box":{"x":70,"y":370,"width":806,"height":11}},{"id":"9e103500-9fb2-4dac-b527-6a13cc2c2c42","block_type":"box","text":"Municipal Tax-Exempt Securities may present similar risks, depending on the particular product. Certain municipal","page_number":94,"box":{"x":70,"y":385,"width":810,"height":11}},{"id":"e76fc819-7cf1-43a8-bb22-df60bef703c8","block_type":"box","text":"instruments in which a Fund may invest may be characterized as derivatives.","page_number":94,"box":{"x":70,"y":400,"width":544,"height":11}},{"id":"c299ffa6-bc1d-45e1-9741-cde9d7428f93","block_type":"box","text":"The value of Municipal Bonds generally may be affected by uncertainties in the municipal markets as a result of","page_number":94,"box":{"x":101,"y":423,"width":799,"height":11}},{"id":"9d07445c-f73b-49e6-a7e6-b98939254cb7","block_type":"box","text":"legislation or litigation, including legislation or litigation that changes the taxation of Municipal Bonds or the rights of","page_number":94,"box":{"x":70,"y":438,"width":829,"height":11}},{"id":"282f71c8-c9ee-4bf3-88da-1faa79cd0e97","block_type":"box","text":"Municipal Bond holders in the event of a bankruptcy. Municipal bankruptcies are rare and certain provisions of the","page_number":94,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"de0e3a97-0ccf-448c-b44a-87ce220f1a11","block_type":"box","text":"U.S. Bankruptcy Code governing such bankruptcies are unclear. Further, the application of state law to Municipal","page_number":94,"box":{"x":70,"y":468,"width":802,"height":11}},{"id":"06f00eb1-ed30-41f0-8257-182b71722802","block_type":"box","text":"Bond issuers could produce varying results among the states or among Municipal Bond issuers within a state. These","page_number":94,"box":{"x":70,"y":483,"width":834,"height":11}},{"id":"e9e4a448-2930-4f1b-8656-1b7327367530","block_type":"box","text":"uncertainties could have a significant impact on the prices of the Municipal Bonds in which a Fund invests.","page_number":94,"box":{"x":69,"y":498,"width":761,"height":11}},{"id":"3bb10cb8-4148-4724-adee-7ae98f81b1eb","block_type":"box","text":"II-56","page_number":94,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"16eb931a-ef6d-4340-93d4-bb9173b276ad","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":94,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5e39ba80-d85b-4dd0-8b82-b5622d421be1","block_type":"box","text":"Description of Municipal Bonds.","page_number":95,"box":{"x":70,"y":45,"width":224,"height":11}},{"id":"3c57fb98-9ec2-4809-9914-d17f86434332","block_type":"box","text":"Municipal Bonds include debt obligations issued to obtain funds for various public purposes, including the","page_number":95,"box":{"x":102,"y":67,"width":754,"height":12}},{"id":"b8732b44-db2a-43ce-b800-c953933b0e56","block_type":"box","text":"construction of a wide range of public facilities, refunding of outstanding obligations and obtaining funds for general","page_number":95,"box":{"x":69,"y":82,"width":824,"height":12}},{"id":"d704a57c-746b-432b-8673-ba1aeebe584c","block_type":"box","text":"operating expenses and loans to other public institutions and facilities. In addition, certain types of bonds are issued","page_number":95,"box":{"x":69,"y":98,"width":836,"height":11}},{"id":"267ad92b-e030-487e-867d-52928264c5ed","block_type":"box","text":"by or on behalf of public authorities to finance various privately owned or operated facilities, including certain","page_number":95,"box":{"x":69,"y":113,"width":776,"height":11}},{"id":"c2fd96d7-88b2-4c71-b68b-33799000ea56","block_type":"box","text":"facilities for the local furnishing of electric energy or gas, sewage facilities, solid waste disposal facilities and other","page_number":95,"box":{"x":68,"y":128,"width":822,"height":11}},{"id":"787f458d-37df-48bb-8010-0b87d1b2977e","block_type":"box","text":"specialized facilities. Such obligations are included within the term Municipal Bonds if the interest paid thereon is","page_number":95,"box":{"x":69,"y":143,"width":810,"height":11}},{"id":"b18fd612-a423-4a0e-9ffd-f4c1860d1de3","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":95,"box":{"x":69,"y":158,"width":808,"height":11}},{"id":"b57057c2-8ed5-4328-86fd-3fb7fecaae98","block_type":"box","text":"types of private activity bonds, the proceeds of which are used for the construction, equipment or improvement of","page_number":95,"box":{"x":68,"y":173,"width":812,"height":11}},{"id":"cbddf0d2-75d5-4f99-9007-424d48acc715","block_type":"box","text":"privately operated industrial or commercial facilities, may constitute Municipal Bonds, although the current U.S.","page_number":95,"box":{"x":70,"y":188,"width":792,"height":12}},{"id":"ab3ab198-9499-4fd1-8dc6-5b63480a0fa3","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":95,"box":{"x":68,"y":203,"width":835,"height":12}},{"id":"31f15bff-2b02-4df0-8710-a156f402fb1d","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":95,"box":{"x":68,"y":218,"width":840,"height":12}},{"id":"aa8ef652-1018-4874-8f82-6e80c06b0d1b","block_type":"box","text":"obligation” and “revenue” or “special obligation” bonds, which latter category includes private activity bonds (“PABs”)","page_number":95,"box":{"x":69,"y":234,"width":838,"height":11}},{"id":"1c69dc17-e684-4529-8bc5-0f78d807078e","block_type":"box","text":"(or “industrial development bonds” under pre-1986 law).","page_number":95,"box":{"x":69,"y":249,"width":401,"height":11}},{"id":"69462a0e-e529-411d-918f-83a5776d3fb3","block_type":"box","text":"General Obligation Bonds.","page_number":95,"box":{"x":102,"y":272,"width":184,"height":11}},{"id":"ac951d3a-aafd-4fc2-8f5c-d7405cf76460","block_type":"box","text":"General obligation bonds are secured by the issuer’s pledge of its full faith, credit and","page_number":95,"box":{"x":292,"y":271,"width":613,"height":12}},{"id":"b522e50d-e57d-41d2-8b9c-6ec92ad644f6","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":95,"box":{"x":68,"y":286,"width":816,"height":12}},{"id":"9eaa751b-b664-4e02-a086-85c1105a5ebf","block_type":"box","text":"however, by provisions of its state constitution or laws, and an entity’s creditworthiness will depend on many factors,","page_number":95,"box":{"x":69,"y":302,"width":834,"height":11}},{"id":"32ad7d96-b58b-4091-a40b-ccb0e34404a2","block_type":"box","text":"including potential erosion of its tax base due to population declines, natural disasters, declines in the state’s","page_number":95,"box":{"x":70,"y":317,"width":786,"height":11}},{"id":"9c408bb3-6487-4a3e-9a32-b4d75a095de4","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":95,"box":{"x":70,"y":332,"width":835,"height":11}},{"id":"0091a2a6-794c-41e7-9ad3-8ffa7fe2c290","block_type":"box","text":"state legislative proposals or voter initiatives to limit ad valorem real property taxes and the extent to which the entity","page_number":95,"box":{"x":69,"y":347,"width":840,"height":11}},{"id":"cd89ed41-1d44-4c36-93b2-eef30feaec4c","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":95,"box":{"x":69,"y":362,"width":782,"height":11}},{"id":"6dca16de-10f5-4ff2-9c4a-c32e54d07de8","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":95,"box":{"x":68,"y":377,"width":791,"height":12}},{"id":"b702d826-2b23-4c5e-ba79-a42b24468b10","block_type":"box","text":"repayment of principal when due is affected by the issuer’s maintenance of its tax base.","page_number":95,"box":{"x":69,"y":392,"width":630,"height":12}},{"id":"dc01d5a4-5093-4cd9-af14-c4f91873db88","block_type":"box","text":"Revenue Bonds.","page_number":95,"box":{"x":102,"y":415,"width":114,"height":9}},{"id":"e1a224ff-129a-4bb7-b29e-727be0ae5fb6","block_type":"box","text":"Revenue bonds are payable only from the revenues derived from a particular facility or class of","page_number":95,"box":{"x":223,"y":415,"width":676,"height":11}},{"id":"38fedfb1-3ac6-4634-a2dd-8a0f3e58da69","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":95,"box":{"x":68,"y":430,"width":791,"height":11}},{"id":"6503e003-6530-4463-9cba-9abd6e00ba38","block_type":"box","text":"payments from the user of the facility being financed; accordingly, the timely payment of interest and the repayment","page_number":95,"box":{"x":70,"y":445,"width":824,"height":12}},{"id":"f6b3c1b0-a5d7-479c-91f0-589c849681a0","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":95,"box":{"x":69,"y":460,"width":798,"height":12}},{"id":"db0227cd-30af-4abf-a83a-5a54a79ac66e","block_type":"box","text":"viability of such facility or such revenue source.","page_number":95,"box":{"x":68,"y":475,"width":336,"height":12}},{"id":"53c20408-6809-4648-bceb-9fadf47cc1a9","block_type":"box","text":"Revenue bonds issued by state or local agencies to finance the development of low-income, multi-family housing","page_number":95,"box":{"x":102,"y":498,"width":801,"height":11}},{"id":"4cffd041-018b-4fda-98f4-bf0373cd8e9c","block_type":"box","text":"involve special risks in addition to those associated with municipal bonds generally, including that the underlying","page_number":95,"box":{"x":70,"y":514,"width":800,"height":11}},{"id":"a9036421-7b4e-4185-b62a-2f93c3dd3ecf","block_type":"box","text":"properties may not generate sufficient income to pay expenses and interest costs. Such bonds are generally non","page_number":95,"box":{"x":70,"y":528,"width":810,"height":12}},{"id":"380f2aa8-b0e3-421e-9478-914558b0b581","block_type":"box","text":"recourse against the property owner, may be junior to the rights of others with an interest in the properties, may pay","page_number":95,"box":{"x":69,"y":543,"width":830,"height":12}},{"id":"79232d62-6c3a-454a-a2ff-8bc192b80945","block_type":"box","text":"interest that changes based in part on the financial performance of the property, may be prepayable without penalty","page_number":95,"box":{"x":70,"y":559,"width":828,"height":11}},{"id":"d9c49e75-dda7-4b54-8363-7ac994c09817","block_type":"box","text":"and may be used to finance the construction of housing developments which, until completed and rented, do not","page_number":95,"box":{"x":69,"y":574,"width":804,"height":11}},{"id":"5eb5b65c-6606-456a-8176-a8dc747a094e","block_type":"box","text":"generate income to pay interest. Increases in interest rates payable on senior obligations may make it more difficult","page_number":95,"box":{"x":68,"y":589,"width":830,"height":11}},{"id":"467fdcd9-bdb1-4a1d-87d3-c39c6c176651","block_type":"box","text":"for issuers to meet payment obligations on subordinated bonds.","page_number":95,"box":{"x":68,"y":604,"width":457,"height":11}},{"id":"7d933558-78e3-4f6f-99bb-a6b293d2dc1b","block_type":"box","text":"PABs.","page_number":95,"box":{"x":102,"y":627,"width":38,"height":9}},{"id":"e7cabf9c-ebf7-4a23-b1b0-d8cbf969d023","block_type":"box","text":"PABs are, in most cases, tax-exempt securities issued by states, municipalities or public authorities to","page_number":95,"box":{"x":147,"y":627,"width":730,"height":11}},{"id":"a5ff83c2-833a-49c3-8caa-b112f969bd31","block_type":"box","text":"provide funds, usually through a loan or lease arrangement, to a private entity for the purpose of financing","page_number":95,"box":{"x":70,"y":642,"width":755,"height":11}},{"id":"a068374b-6887-4124-8e3c-8dd1d7a1a473","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":95,"box":{"x":69,"y":657,"width":797,"height":11}},{"id":"4f4efe4a-7355-49bf-9634-1f2ddb30fcdd","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":95,"box":{"x":69,"y":672,"width":793,"height":11}},{"id":"3ba054ad-5d6e-4a12-88fa-1db6b12a1a03","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":95,"box":{"x":70,"y":687,"width":840,"height":11}},{"id":"fd1ed491-9350-4fa6-ac30-03fb800c672e","block_type":"box","text":"such bonds. Therefore, an investor should understand that repayment of such bonds generally depends on the","page_number":95,"box":{"x":69,"y":702,"width":789,"height":12}},{"id":"f52496e2-4041-41a8-ba1d-fe38adb223a0","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":95,"box":{"x":69,"y":717,"width":832,"height":12}},{"id":"342463d1-c26a-4bc9-8148-b76f1a4a1bdc","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":95,"box":{"x":69,"y":732,"width":802,"height":12}},{"id":"6168c46d-1489-4cc5-a4a4-8ca72b4fbf7f","block_type":"box","text":"many factors including the size of the entity, its capital structure, demand for its products or services, competition,","page_number":95,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"1a3ad8b7-8bce-4577-845b-671a1ef303ad","block_type":"box","text":"general economic conditions, government regulation and the entity’s dependence on revenues for the operation of","page_number":95,"box":{"x":68,"y":763,"width":816,"height":11}},{"id":"81b5cf0c-3edd-4947-a633-80138881c915","block_type":"box","text":"the particular facility being financed.","page_number":95,"box":{"x":68,"y":778,"width":258,"height":11}},{"id":"a657cc85-06bd-4f3e-b147-0303f813c659","block_type":"box","text":"Moral Obligation Bonds.","page_number":95,"box":{"x":102,"y":801,"width":169,"height":11}},{"id":"026a6a69-8734-4750-af17-053f5972a91b","block_type":"box","text":"“Moral obligation” bonds are normally issued by special purpose public authorities. If an","page_number":95,"box":{"x":278,"y":801,"width":628,"height":11}},{"id":"f4eddd40-0bf0-4f04-922a-177f1d05b1e3","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":95,"box":{"x":70,"y":816,"width":809,"height":11}},{"id":"eeb96c29-308d-432a-bd1e-196a1a4c5557","block_type":"box","text":"commitment but not a legal obligation of the state or municipality that created the special purpose public authority","page_number":95,"box":{"x":69,"y":831,"width":816,"height":11}},{"id":"fa0f45a8-5e13-4876-a7e1-21c656ee3d21","block_type":"box","text":"that issued the bonds.","page_number":95,"box":{"x":68,"y":846,"width":160,"height":9}},{"id":"bd0a906f-7172-4df3-8a9b-204d01e8fed1","block_type":"box","text":"Municipal Notes.","page_number":95,"box":{"x":102,"y":869,"width":118,"height":11}},{"id":"2ce33a57-bd81-4020-8a94-5dd94eaf0b65","block_type":"box","text":"Municipal notes are shorter term municipal debt obligations. They may provide interim financing","page_number":95,"box":{"x":227,"y":869,"width":683,"height":11}},{"id":"35aa8636-7ae9-440f-a272-e2d298eaa267","block_type":"box","text":"in anticipation of tax collection, bond sales or revenue receipts. If there is a shortfall in the anticipated proceeds,","page_number":95,"box":{"x":70,"y":884,"width":807,"height":11}},{"id":"136b97ef-1a33-47c3-bdd0-a087dd643240","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":95,"box":{"x":69,"y":899,"width":739,"height":11}},{"id":"5b05b4d1-f19b-4373-89a2-9d0ce2f7ae7e","block_type":"box","text":"II-57","page_number":95,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a486236a-bdb1-4c59-8052-7bf24808b1c7","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":95,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ff0d03cd-657c-4301-96ad-c64cb6a0cab8","block_type":"box","text":"Municipal Commercial Paper.","page_number":96,"box":{"x":102,"y":45,"width":205,"height":11}},{"id":"62800713-446b-44b2-ae76-e5a1a3691b85","block_type":"box","text":"Municipal commercial paper is generally unsecured and issued to meet short-term","page_number":96,"box":{"x":314,"y":45,"width":586,"height":11}},{"id":"93009275-aab4-4f59-8841-731972aceab8","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":96,"box":{"x":68,"y":60,"width":767,"height":11}},{"id":"7454dda4-ace7-4536-853a-bc1643f5784c","block_type":"box","text":"bankruptcy, unsecured creditors are repaid only after the secured creditors out of the assets, if any, that remain.","page_number":96,"box":{"x":69,"y":75,"width":803,"height":11}},{"id":"5b23eeac-8167-4121-a683-0742cc0af779","block_type":"box","text":"Municipal Lease Obligations.","page_number":96,"box":{"x":102,"y":98,"width":203,"height":11}},{"id":"bb6f923d-ba28-45e4-b428-443c0aec4cfe","block_type":"box","text":"Also included within the general category of Municipal Bonds are certificates of","page_number":96,"box":{"x":311,"y":98,"width":566,"height":11}},{"id":"05aa848b-866f-4dbb-86ee-3ac857ab71c0","block_type":"box","text":"participation (“COPs”) issued by government authorities or entities to finance the acquisition or construction of","page_number":96,"box":{"x":70,"y":113,"width":791,"height":11}},{"id":"6af36639-b4bf-4090-a349-17a7703abe40","block_type":"box","text":"equipment, land and/or facilities. The COPs represent participations in a lease, an installment purchase contract or a","page_number":96,"box":{"x":69,"y":128,"width":840,"height":11}},{"id":"c5ba7ef0-d5a6-4ea0-996d-cc1ab5738317","block_type":"box","text":"conditional sales contract (hereinafter collectively called “lease obligations”) relating to such equipment, land or","page_number":96,"box":{"x":69,"y":143,"width":800,"height":11}},{"id":"ecc2057a-5317-4b8f-8154-d1676fcc607b","block_type":"box","text":"facilities. Municipal leases, like other municipal debt obligations, are subject to the risk of non-payment. Although","page_number":96,"box":{"x":68,"y":158,"width":809,"height":11}},{"id":"9d3b9524-29f6-46a9-8f6f-3a89198062ed","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":96,"box":{"x":70,"y":173,"width":820,"height":11}},{"id":"848e115e-fd13-46da-b713-1fb1ea610b93","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":96,"box":{"x":70,"y":188,"width":808,"height":12}},{"id":"23659cc5-467d-4683-9d82-5769532b50fa","block_type":"box","text":"payments due under the lease obligation. However, certain lease obligations contain “non-appropriation” clauses,","page_number":96,"box":{"x":70,"y":204,"width":809,"height":11}},{"id":"afabb12f-d9d7-42a7-8efd-3c2974313681","block_type":"box","text":"which provide that the issuer has no obligation to make lease or installment purchase payments in future years","page_number":96,"box":{"x":68,"y":218,"width":795,"height":12}},{"id":"7266a811-636b-4184-b1e3-b43437f7f573","block_type":"box","text":"unless money is appropriated for such purpose on a yearly basis. Although “non-appropriation” lease obligations are","page_number":96,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"56880d10-d45f-4931-aa6d-47d4e49cc759","block_type":"box","text":"secured by the leased property, disposition of the property in the event of foreclosure might prove difficult. These","page_number":96,"box":{"x":69,"y":249,"width":810,"height":11}},{"id":"25445d87-6470-477d-bfce-0ce48b8489f0","block_type":"box","text":"securities represent a type of financing that has not yet developed the depth of marketability associated with more","page_number":96,"box":{"x":69,"y":264,"width":817,"height":11}},{"id":"f0aee851-97c2-4bc1-a41d-602bbf6c68f4","block_type":"box","text":"conventional securities. Certain investments in lease obligations may be illiquid.","page_number":96,"box":{"x":69,"y":279,"width":572,"height":11}},{"id":"7089f76c-bd9a-498c-8b7f-749045fd0dc8","block_type":"box","text":"The ability of issuers of municipal leases to make timely lease payments may be adversely impacted in general","page_number":96,"box":{"x":101,"y":302,"width":791,"height":11}},{"id":"0beb09c2-314f-4c2c-b8b1-dfe30f3f5c52","block_type":"box","text":"economic downturns and as relative governmental cost burdens are allocated and reallocated among federal, state","page_number":96,"box":{"x":69,"y":317,"width":822,"height":11}},{"id":"7f6fd00e-bf5b-4f05-9322-e5553e3c403d","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":96,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"fd196a11-a10e-4f45-bfa1-20cb0d6ad479","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":96,"box":{"x":69,"y":347,"width":798,"height":11}},{"id":"510c417a-b18d-46b5-b9ac-41506fbc75cc","block_type":"box","text":"Fund. Issuers of municipal securities might seek protection under the bankruptcy laws. In the event of bankruptcy of","page_number":96,"box":{"x":70,"y":362,"width":828,"height":11}},{"id":"6f6964bc-6394-4e59-9403-8914530e850a","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":96,"box":{"x":69,"y":377,"width":833,"height":11}},{"id":"410e5f21-134e-4fb6-93f4-3f7f0f971568","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":96,"box":{"x":69,"y":393,"width":807,"height":11}},{"id":"ae0da0db-46aa-41b8-946e-d7c12d6bcf0d","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":96,"box":{"x":68,"y":407,"width":835,"height":12}},{"id":"6bbdb640-c600-4f7f-b85b-2904db8e5aaa","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":96,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"dce281bd-1339-41ab-b5a8-5d31e2de4cd9","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":96,"box":{"x":69,"y":438,"width":829,"height":11}},{"id":"9770f011-037b-417b-8fba-1fd15b93f50a","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":96,"box":{"x":68,"y":453,"width":793,"height":11}},{"id":"c4185120-7231-4915-8622-f5a60af22fcf","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":96,"box":{"x":70,"y":468,"width":810,"height":11}},{"id":"5341c2ac-11bd-4986-ae75-0f8362e19365","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":96,"box":{"x":70,"y":483,"width":820,"height":11}},{"id":"0ffb6792-b407-406e-8fb6-4ac5029a63fd","block_type":"box","text":"exercise its rights by taking possession of such assets, because as a regulated investment company a Fund is","page_number":96,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"bbc70a95-b82b-4e1a-8fa3-a04122d6622e","block_type":"box","text":"subject to certain limitations on its investments and on the nature of its income.","page_number":96,"box":{"x":69,"y":513,"width":574,"height":11}},{"id":"53bae5ed-a1b8-46b7-b5b6-0ebb8a21dc68","block_type":"box","text":"Tender Option Bonds.","page_number":96,"box":{"x":103,"y":536,"width":150,"height":11}},{"id":"e24ab3c5-4d6a-4d27-b74f-2b54c4006e39","block_type":"box","text":"Certain Funds may invest in residual inverse floating rate interest tender option bonds","page_number":96,"box":{"x":260,"y":536,"width":613,"height":11}},{"id":"f4d167a7-68a3-4094-b3d1-84ebc343b5db","block_type":"box","text":"(“TOB Residuals”), which are derivative interests in Municipal Bonds. The TOB Residuals in which the Funds will","page_number":96,"box":{"x":69,"y":551,"width":796,"height":11}},{"id":"4ebbea57-bf90-47e7-9d12-e0424c1f0f44","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":96,"box":{"x":70,"y":566,"width":834,"height":11}},{"id":"371a2bac-9abf-4283-99fe-3eecffb9eb75","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":96,"box":{"x":68,"y":581,"width":807,"height":11}},{"id":"c4bd378d-70ea-4454-a1a3-f3906277fb88","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":96,"box":{"x":69,"y":596,"width":836,"height":12}},{"id":"3c30a27e-ab51-40e2-ad67-956578a0879a","block_type":"box","text":"the potential for yields exceeding the yields available on fixed rate Municipal Bonds with comparable credit quality.","page_number":96,"box":{"x":68,"y":612,"width":814,"height":11}},{"id":"05414e8f-59b1-43fd-8f04-c3bdb75dd6e9","block_type":"box","text":"The Funds may invest in TOB Residuals for the purpose of using economic leverage.","page_number":96,"box":{"x":68,"y":627,"width":598,"height":11}},{"id":"1b826db4-d52c-4269-90bc-364a7937642b","block_type":"box","text":"TOB Residuals represent beneficial interests in a special purpose trust formed for the purpose of holding","page_number":96,"box":{"x":101,"y":649,"width":751,"height":12}},{"id":"2de85b1c-b712-4510-b9ea-59b8610fa9af","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":96,"box":{"x":70,"y":664,"width":786,"height":12}},{"id":"c6731442-80a3-460e-a75f-6a62e5aef456","block_type":"box","text":"beneficial interests: short-term floating rate interests (“TOB Floaters”), which are sold to third-party investors, and","page_number":96,"box":{"x":69,"y":680,"width":813,"height":11}},{"id":"caea1872-b2ec-43f7-8860-ec868ea59b09","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":96,"box":{"x":68,"y":695,"width":799,"height":11}},{"id":"ee5bcdac-cda6-49e7-a6e7-098796b4b397","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":96,"box":{"x":70,"y":710,"width":830,"height":11}},{"id":"3921f5f4-2f7a-45be-9a0c-35af102fd520","block_type":"box","text":"the Municipal Bonds held by the TOB Trust and are enhanced with a liquidity support arrangement from a third-party","page_number":96,"box":{"x":68,"y":725,"width":828,"height":11}},{"id":"352cfe96-b3ba-4826-ab78-7f42842270f2","block_type":"box","text":"Liquidity Provider (defined below) which allows holders to tender their position at par (plus accrued interest). A Fund,","page_number":96,"box":{"x":70,"y":740,"width":826,"height":11}},{"id":"3227d050-fa58-4459-9abd-99e73d8a39bf","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":96,"box":{"x":69,"y":755,"width":768,"height":11}},{"id":"3a35ae28-e903-4f41-9720-2624e505b733","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":96,"box":{"x":70,"y":770,"width":825,"height":11}},{"id":"a3da89af-5b05-4ce7-8a7e-cb7d43360d5e","block_type":"box","text":"certain transaction costs, and typically will invest the cash to purchase additional Municipal Bonds or other","page_number":96,"box":{"x":69,"y":786,"width":764,"height":11}},{"id":"4ded9ce3-3705-4d9f-ae14-b797f693b20d","block_type":"box","text":"investments permitted by its investment policies. If a Fund ever purchases all or a portion of the TOB Floaters sold by","page_number":96,"box":{"x":70,"y":801,"width":838,"height":11}},{"id":"c099a381-654d-49f8-baee-989413177946","block_type":"box","text":"the TOB Trust, it may surrender those TOB Floaters together with a proportionate amount of TOB Residuals to the","page_number":96,"box":{"x":68,"y":816,"width":810,"height":11}},{"id":"601f9a61-cbe4-46c4-ae64-534a897e5d5f","block_type":"box","text":"TOB Trust in exchange for a proportionate amount of the Municipal Bonds owned by the TOB Trust.","page_number":96,"box":{"x":68,"y":831,"width":704,"height":11}},{"id":"fb2b0ae0-e902-479a-83c9-d87427dfbe02","block_type":"box","text":"Other BlackRock-advised funds may contribute Municipal Bonds to a TOB Trust into which a Fund has contributed","page_number":96,"box":{"x":102,"y":853,"width":804,"height":12}},{"id":"40f67514-1a34-4f4c-b23d-2ebb067995f3","block_type":"box","text":"Municipal Bonds. If multiple BlackRock-advised funds participate in the same TOB Trust, the economic rights and","page_number":96,"box":{"x":70,"y":869,"width":805,"height":11}},{"id":"6bf42cc0-f5a5-490c-b1ba-eb29e4caec17","block_type":"box","text":"obligations under the TOB Residual will generally be shared among the funds ratably in proportion to their","page_number":96,"box":{"x":69,"y":884,"width":752,"height":11}},{"id":"2a3a9bc3-827c-4a2f-8fae-5d2f55513e82","block_type":"box","text":"participation in the TOB Trust.","page_number":96,"box":{"x":70,"y":899,"width":211,"height":11}},{"id":"91ac0807-2098-43dd-8393-48e136c3bdf0","block_type":"box","text":"II-58","page_number":96,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d8ce4815-b249-4641-b0cf-3866c8e9adbc","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":96,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"99d9a3b0-1f0f-455b-99fe-80faf9ad1d04","block_type":"box","text":"The Municipal Bonds transferred to a TOB Trust typically are high grade Municipal Bonds. In certain cases, when","page_number":97,"box":{"x":101,"y":45,"width":802,"height":11}},{"id":"6b33b559-fb0a-48e5-8dfd-7040a7f149e4","block_type":"box","text":"Municipal Bonds transferred are lower grade Municipal Bonds, the TOB Trust transaction includes a credit","page_number":97,"box":{"x":70,"y":60,"width":753,"height":11}},{"id":"a62a7690-a84d-4178-83af-871319b869db","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":97,"box":{"x":69,"y":75,"width":829,"height":11}},{"id":"f5c0b5ed-c7e7-4998-b903-2804bc048ef5","block_type":"box","text":"a credit enhancement provider. The TOB Trust would be responsible for the payment of the credit enhancement fee","page_number":97,"box":{"x":69,"y":90,"width":819,"height":11}},{"id":"54075360-ad0f-469f-b81f-04dd7ff16f0f","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":97,"box":{"x":69,"y":105,"width":802,"height":11}},{"id":"19a86568-5ae3-444d-b673-1059986916c1","block_type":"box","text":"interest made by the credit enhancement provider.","page_number":97,"box":{"x":70,"y":120,"width":357,"height":11}},{"id":"7dc0006a-7f26-4a6b-8e4c-5daf05915ac3","block_type":"box","text":"The TOB Residuals held by a Fund generally provide the Fund with the right to cause the holders of a proportional","page_number":97,"box":{"x":101,"y":143,"width":807,"height":11}},{"id":"92991ca8-73c7-42cb-85e8-f12b0c44d719","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":97,"box":{"x":69,"y":158,"width":810,"height":11}},{"id":"c38c3d3a-10bf-4ebc-83b5-aba25e7fca52","block_type":"box","text":"may withdraw a corresponding share of the Municipal Bonds from the TOB Trust. This transaction, in effect, creates","page_number":97,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"d39be3c9-17e3-4b18-8086-d8d2beced02c","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":97,"box":{"x":69,"y":188,"width":834,"height":11}},{"id":"9c6eb1a8-19ac-4cab-9f8b-1d1b77b7750e","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":97,"box":{"x":70,"y":203,"width":797,"height":12}},{"id":"f5ec6aff-57f9-4f4b-b48f-f7e5aefe4de9","block_type":"box","text":"impact of the Municipal Bonds’ return within the Fund (thereby creating leverage). The leverage within a TOB Trust","page_number":97,"box":{"x":70,"y":218,"width":809,"height":12}},{"id":"c7555f78-8aef-4e92-ba00-64dd3fa41fa6","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":97,"box":{"x":69,"y":234,"width":820,"height":11}},{"id":"3703bc0b-42ee-455d-a67d-bf09e0838bc9","block_type":"box","text":"issues.","page_number":97,"box":{"x":70,"y":249,"width":49,"height":9}},{"id":"3104efab-68b7-4400-be33-6aa57050fb90","block_type":"box","text":"A Fund may invest in highly leveraged TOB Residuals. A TOB Residual generally is considered highly leveraged if","page_number":97,"box":{"x":101,"y":271,"width":795,"height":12}},{"id":"9aeb087e-2b80-42fa-ab77-2d9d350a8ad1","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":97,"box":{"x":68,"y":286,"width":833,"height":12}},{"id":"ad15bd51-77c5-49fb-9da9-41812ab56598","block_type":"box","text":"Municipal Bonds owned by the TOB Trust.","page_number":97,"box":{"x":70,"y":302,"width":293,"height":11}},{"id":"81e6d825-3ff1-4cdd-8174-b4425e112923","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":97,"box":{"x":101,"y":324,"width":802,"height":11}},{"id":"396d2a1b-f6cf-4fb5-b6fa-9419ed5a16c1","block_type":"box","text":"events (“TOTEs”) and mandatory termination events (“MTEs”), as defined in the TOB Trust agreements. TOTEs","page_number":97,"box":{"x":69,"y":339,"width":788,"height":12}},{"id":"0e8d25ba-946d-4fd4-8ea0-efbea7340d67","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":97,"box":{"x":70,"y":355,"width":836,"height":11}},{"id":"18b88309-59b8-4d4e-beec-68dd5744beaa","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":97,"box":{"x":70,"y":370,"width":819,"height":11}},{"id":"dfde1b6d-b759-401f-b5e7-5c88e0e10bf3","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":97,"box":{"x":70,"y":385,"width":833,"height":11}},{"id":"95dccda2-4b74-4f6f-9cf4-78c5a24e5f9e","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":97,"box":{"x":68,"y":400,"width":834,"height":11}},{"id":"3b78a085-b270-4c27-b3c9-8b5d60a5524a","block_type":"box","text":"inability of the TOB Trust to obtain renewal of the liquidity support agreement, and a substantial decline in the market","page_number":97,"box":{"x":70,"y":415,"width":838,"height":11}},{"id":"e0f6def6-7e8a-492f-acdf-cbb9bb6e2111","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":97,"box":{"x":68,"y":430,"width":831,"height":11}},{"id":"34b24cb8-ba27-4a39-ad7e-0e53b388d8bf","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":97,"box":{"x":70,"y":445,"width":823,"height":12}},{"id":"fffcb050-3d7a-4281-8022-b7814a0a1a6d","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":97,"box":{"x":69,"y":460,"width":839,"height":12}},{"id":"01049af0-bf94-4136-b7ec-f824b457a240","block_type":"box","text":"the holders of the TOB Floaters would be paid senior to the TOB Residual holders (","page_number":97,"box":{"x":68,"y":475,"width":589,"height":12}},{"id":"403fa175-3fdd-4794-b253-caced35deb4a","block_type":"box","text":"i.e.","page_number":97,"box":{"x":659,"y":476,"width":21,"height":8}},{"id":"17d9a867-ac3c-4691-a4fc-4ce3e707f987","block_type":"box","text":", the Fund). In contrast, in the","page_number":97,"box":{"x":682,"y":476,"width":211,"height":11}},{"id":"07e5b877-2fce-47d4-84d0-82941cde8cf9","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":97,"box":{"x":69,"y":491,"width":822,"height":11}},{"id":"bb2b36a8-4a0d-4c2a-9ca4-e13f18f32cf8","block_type":"box","text":"rata in proportion to the respective face values of their certificates.","page_number":97,"box":{"x":69,"y":506,"width":479,"height":11}},{"id":"a3ef2cfc-bcf1-4102-a491-6dad4aac288b","block_type":"box","text":"A Fund may invest in a TOB Trust on either a non-recourse or recourse basis. TOB Trusts are typically supported","page_number":97,"box":{"x":101,"y":529,"width":797,"height":11}},{"id":"14e91704-9da7-4d13-b5c3-aee5aa65ef29","block_type":"box","text":"by a liquidity facility provided by a third-party bank or other financial institution (the “Liquidity Provider”) that allows","page_number":97,"box":{"x":69,"y":543,"width":815,"height":12}},{"id":"6b90ac95-e818-40d9-ac19-6b7f90fd4c6d","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":97,"box":{"x":68,"y":559,"width":828,"height":11}},{"id":"1a9f3c97-ad8b-4252-a09b-bd8289233032","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":97,"box":{"x":69,"y":574,"width":828,"height":11}},{"id":"7e70b6d5-ec96-47bd-b98d-ae4ee51b3670","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":97,"box":{"x":68,"y":589,"width":815,"height":11}},{"id":"9d199561-da67-4945-99f8-81882cf31e7e","block_type":"box","text":"the Liquidity Provider to purchase the tendered TOB Floaters.","page_number":97,"box":{"x":68,"y":604,"width":434,"height":11}},{"id":"8db1e23c-68f1-427b-9f11-88f96f483f5e","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":97,"box":{"x":101,"y":627,"width":772,"height":11}},{"id":"d611b467-6d4d-4441-94ec-9ebf48e5c692","block_type":"box","text":"payment under the liquidity facility, the Liquidity Provider will typically liquidate all or a portion of the Municipal Bonds","page_number":97,"box":{"x":70,"y":642,"width":831,"height":11}},{"id":"8618e3bf-accf-4616-8d5d-13b74e2c099e","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":97,"box":{"x":69,"y":657,"width":785,"height":11}},{"id":"0939a5a9-0332-4f04-aa89-2625da7b1e61","block_type":"box","text":"liquidation proceeds (the “Liquidation Shortfall”). If a Fund invests in a TOB Trust on a recourse basis, it will typically","page_number":97,"box":{"x":70,"y":672,"width":831,"height":11}},{"id":"4881152a-f3d0-4af6-9c9e-0ed2a733831d","block_type":"box","text":"enter into a reimbursement agreement with the Liquidity Provider pursuant to which the Fund is required to reimburse","page_number":97,"box":{"x":69,"y":687,"width":836,"height":11}},{"id":"04b2303b-a300-4bd3-b41e-4dcb5031ce8e","block_type":"box","text":"the Liquidity Provider the amount of any Liquidation Shortfall. As a result, if the Fund invests in a recourse TOB Trust,","page_number":97,"box":{"x":68,"y":702,"width":836,"height":11}},{"id":"ad64f07a-1061-4c55-b78a-9035957412cd","block_type":"box","text":"the Fund will bear the risk of loss with respect to any Liquidation Shortfall. If multiple BlackRock-advised funds","page_number":97,"box":{"x":68,"y":717,"width":788,"height":12}},{"id":"4baf0043-e8bf-40e6-b6e1-5b205dfc3272","block_type":"box","text":"participate in any such TOB Trust, these losses will be shared ratably, in proportion to their participation in the TOB","page_number":97,"box":{"x":70,"y":733,"width":823,"height":11}},{"id":"f325f02b-ed8a-4b06-bebb-fbdeb9e8506c","block_type":"box","text":"Trust.","page_number":97,"box":{"x":68,"y":748,"width":39,"height":9}},{"id":"72978a1a-1ef8-428a-88f5-392d71096c20","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":97,"box":{"x":102,"y":770,"width":784,"height":12}},{"id":"331081e9-2069-40df-915b-d979c4cd8ab1","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":97,"box":{"x":70,"y":785,"width":830,"height":12}},{"id":"505439f7-5c28-4c6d-a283-900f405f833f","block_type":"box","text":"are presented as liabilities in the Fund’s Statement of Assets and Liabilities. Interest income from the underlying","page_number":97,"box":{"x":69,"y":801,"width":806,"height":11}},{"id":"80a06cd8-93bc-42c9-ac70-af22d592c913","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":97,"box":{"x":70,"y":816,"width":831,"height":11}},{"id":"80768b4b-62b1-4f68-92d0-b351ade2c09d","block_type":"box","text":"expenses related to remarketing, administration, trustee and other services to a TOB Trust are reported as expenses","page_number":97,"box":{"x":69,"y":831,"width":837,"height":11}},{"id":"ed42fd9f-a234-4ba1-9c5f-0db895618833","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":97,"box":{"x":69,"y":846,"width":832,"height":11}},{"id":"2d110df9-03da-40a4-ba92-e96c308d0ee6","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":97,"box":{"x":70,"y":861,"width":728,"height":9}},{"id":"f637b0fb-3864-4748-ab4f-c4870350387f","block_type":"box","text":"For TOB Floaters, generally, the interest rate earned will be based upon the market rates for Municipal Bonds","page_number":97,"box":{"x":102,"y":884,"width":776,"height":11}},{"id":"b18facc4-ec38-41da-a802-fbc38d6c50d4","block_type":"box","text":"with maturities or remarketing provisions that are comparable in duration to the periodic interval of the tender option.","page_number":97,"box":{"x":68,"y":899,"width":837,"height":11}},{"id":"7b8bf348-e4da-41ca-ba4d-82f3dfc877ce","block_type":"box","text":"II-59","page_number":97,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6098f148-40e3-4bec-bcf2-82088418e48d","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":97,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"dc44bbb9-285b-4dc6-91ea-bf7e00c83c85","block_type":"box","text":"Since the tender option feature has a shorter term than the final maturity or first call date of the underlying Municipal","page_number":98,"box":{"x":69,"y":45,"width":836,"height":11}},{"id":"a11bde48-ecab-4479-8bd0-6ce640bf2b46","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":98,"box":{"x":70,"y":60,"width":809,"height":11}},{"id":"ab3e9dd7-b62c-40ec-9f2c-1f7963cd600b","block_type":"box","text":"financial institution furnishing the liquidity facility as well as the credit strength of that institution. The risk associated","page_number":98,"box":{"x":68,"y":75,"width":836,"height":11}},{"id":"8c0021fa-e389-4c5e-893d-a8d6250864f4","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":98,"box":{"x":68,"y":90,"width":835,"height":11}},{"id":"e656ff86-f19c-4103-aed3-ffe5e72c7434","block_type":"box","text":"the credit ratings, and thus the perceived reliability and creditworthiness, of many major financial institutions, some","page_number":98,"box":{"x":68,"y":105,"width":827,"height":11}},{"id":"eea5c63c-09bd-4a92-a26f-620c3c02792a","block_type":"box","text":"of which sponsor and/or provide liquidity support to TOB Trusts. This in turn may reduce the desirability of TOB","page_number":98,"box":{"x":69,"y":120,"width":790,"height":11}},{"id":"1c16f5eb-6d07-418f-bce3-dbb1d2ee0820","block_type":"box","text":"Floaters as investments, which could impair the viability or availability of TOB Trusts.","page_number":98,"box":{"x":70,"y":135,"width":599,"height":11}},{"id":"e81debf8-436f-4bb6-9289-5f3519109439","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into TOB Trust transactions, reverse","page_number":98,"box":{"x":102,"y":158,"width":762,"height":11}},{"id":"813c7db5-6645-48c3-a068-9a84c4dd5256","block_type":"box","text":"repurchase agreements and similar financing transactions (e.g., borrowed bonds) notwithstanding the limitation on","page_number":98,"box":{"x":69,"y":173,"width":818,"height":11}},{"id":"fbda830c-36b9-4fce-bb87-52673bd628fe","block_type":"box","text":"the issuance of senior securities in Section 18 of the Investment Company Act, provided that the Fund either","page_number":98,"box":{"x":68,"y":188,"width":778,"height":11}},{"id":"7d6ee1cd-6376-49c9-b54f-a8ea286579ab","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":98,"box":{"x":69,"y":203,"width":811,"height":12}},{"id":"24e8cf2e-85ac-4834-bf62-253307b63316","block_type":"box","text":"aggregate, or (ii) treats such transactions as Derivatives Transactions under Rule 18f-4. See “—Derivatives —","page_number":98,"box":{"x":69,"y":218,"width":786,"height":12}},{"id":"7127cb2b-4899-4c73-94c8-0d7753a5f60c","block_type":"box","text":"Regulation of Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":98,"box":{"x":70,"y":234,"width":588,"height":11}},{"id":"bb0067e3-8aef-4352-b264-0b698e294e47","block_type":"box","text":"Developments in the TOB Trust Market.","page_number":98,"box":{"x":102,"y":256,"width":279,"height":11}},{"id":"3d5cd2b1-373f-4d37-800e-d1db981cedb8","block_type":"box","text":"In response to the restrictions imposed by section 619 of the Dodd-Frank Wall Street Reform and Consumer","page_number":98,"box":{"x":102,"y":279,"width":771,"height":11}},{"id":"303ccfdf-6065-4297-b118-2de639540fd5","block_type":"box","text":"Protection Act (the “Volcker Rule”), market participants have developed a structure for TOB Trusts designed to","page_number":98,"box":{"x":69,"y":294,"width":786,"height":11}},{"id":"8509cccc-f131-4bb1-b8df-c0520cd1cee6","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":98,"box":{"x":69,"y":309,"width":816,"height":11}},{"id":"997442f9-cdc3-42f3-bf8c-2b02a4428398","block_type":"box","text":"establish, structure and “sponsor” the TOB Trusts in which it holds TOB Residuals. In such a structure, certain","page_number":98,"box":{"x":69,"y":324,"width":791,"height":11}},{"id":"26b9d6ce-3407-454e-ba6f-f5e8882665fd","block_type":"box","text":"responsibilities that previously belonged to the sponsor bank will be performed by, or on behalf of, a Fund. A Fund","page_number":98,"box":{"x":69,"y":339,"width":812,"height":12}},{"id":"f01a2890-a745-4a71-9006-2452a46ffd0d","block_type":"box","text":"may utilize service providers in meeting these responsibilities. It is possible that regulators could take positions that","page_number":98,"box":{"x":69,"y":355,"width":832,"height":11}},{"id":"8ec16ead-ed7b-48aa-8940-f9dd6208ed9e","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":98,"box":{"x":69,"y":370,"width":810,"height":11}},{"id":"b013f745-2c95-4098-a4f8-360e6fdb0d62","block_type":"box","text":"this TOB Trust structure, a Fund has certain additional duties and responsibilities, which may give rise to certain","page_number":98,"box":{"x":68,"y":385,"width":803,"height":11}},{"id":"bb62bb07-4265-481a-bebd-aac5a9f0510a","block_type":"box","text":"additional risks including, but not limited to, compliance, securities law and operational risks.","page_number":98,"box":{"x":69,"y":400,"width":665,"height":11}},{"id":"f7d343f7-4086-432d-9c41-a14ab5006501","block_type":"box","text":"Under this structure, service providers to a TOB Trust, such as administrators, liquidity providers, trustees, and","page_number":98,"box":{"x":102,"y":423,"width":793,"height":11}},{"id":"045d1241-f8a1-4cd1-852d-cd67c31d6181","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":98,"box":{"x":69,"y":438,"width":783,"height":11}},{"id":"2f1ada3e-6bf0-44af-9146-b98515802e7e","block_type":"box","text":"traditional tender option bond structure, a Fund deposits Municipal Bonds into the TOB Trust in exchange for TOB","page_number":98,"box":{"x":68,"y":453,"width":808,"height":11}},{"id":"283cf213-d84e-4e04-98f9-2d61b01c16b5","block_type":"box","text":"Residuals, the TOB Trust then issues and sells TOB Floaters to third-party investors, and the proceeds of the sale of","page_number":98,"box":{"x":70,"y":468,"width":830,"height":11}},{"id":"0eb9ca22-833d-4e53-83e8-2eac1a1c3d0b","block_type":"box","text":"the TOB Floaters is distributed to such TOB Residual holders (","page_number":98,"box":{"x":68,"y":483,"width":442,"height":11}},{"id":"cf4aead0-be15-4315-9590-7832fce28bf9","block_type":"box","text":"i.e.","page_number":98,"box":{"x":512,"y":483,"width":20,"height":9}},{"id":"bdb48565-5826-45a5-9c52-c5b1cab48421","block_type":"box","text":", the Fund). Tendered TOB Floaters continue to be","page_number":98,"box":{"x":535,"y":483,"width":352,"height":11}},{"id":"8db25132-a556-45ef-ae21-04b15beaa849","block_type":"box","text":"supported by a remarketing agent and a liquidity facility. However, the remarketing agent does not purchase tendered","page_number":98,"box":{"x":69,"y":498,"width":836,"height":11}},{"id":"76d5e94e-23d5-4f99-ab54-4d5932ebb4bc","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":98,"box":{"x":68,"y":513,"width":816,"height":12}},{"id":"7c703cea-4eb9-4b7b-9738-e5ee0602a76e","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":98,"box":{"x":68,"y":528,"width":835,"height":11}},{"id":"e3b1f2d4-86f9-434a-a32e-eab5aef31b7c","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":98,"box":{"x":69,"y":543,"width":822,"height":12}},{"id":"4f40f7dd-81f2-4c1e-98ba-62290fa49f4e","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":98,"box":{"x":69,"y":559,"width":777,"height":11}},{"id":"7b9b35de-4e28-4433-a6e9-b08bdf2d287d","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":98,"box":{"x":69,"y":574,"width":800,"height":11}},{"id":"d51858bc-1c72-4913-81a3-cb37bc7ba521","block_type":"box","text":"made by a Liquidity Provider will be secured by the purchased TOB Floaters held by the TOB Trust.","page_number":98,"box":{"x":69,"y":589,"width":696,"height":11}},{"id":"99aad2fa-21f7-4d0e-92ca-64d19ace06ef","block_type":"box","text":"Similar to the traditional structure for TOB Trusts, a Fund may hold either non-recourse TOB Residuals or","page_number":98,"box":{"x":102,"y":612,"width":745,"height":11}},{"id":"63c51022-448f-481f-a1f0-b4921f03a6ee","block_type":"box","text":"recourse TOB Residuals under this structure. In the event of a Liquidation Shortfall, there would generally be no","page_number":98,"box":{"x":69,"y":627,"width":797,"height":11}},{"id":"b34c5c19-ecc4-4404-abe3-6b80263c9599","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":98,"box":{"x":69,"y":642,"width":803,"height":10}},{"id":"4d15365e-8f46-4f57-af4e-167deb605e0a","block_type":"box","text":"above, a Fund would bear the risk of loss with respect to any Liquidation Shortfall if it holds a recourse TOB Residual.","page_number":98,"box":{"x":69,"y":657,"width":838,"height":11}},{"id":"eab8b0d2-1fe7-45d7-ac7f-d591ad64b8c4","block_type":"box","text":"The SEC and various federal banking and housing agencies adopted credit risk retention rules for securitizations","page_number":98,"box":{"x":101,"y":680,"width":801,"height":11}},{"id":"22c49775-a2ff-4280-a79a-e32de6fdca51","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":98,"box":{"x":69,"y":695,"width":838,"height":11}},{"id":"8b46b05b-050c-483c-9b4c-e54691f10a36","block_type":"box","text":"TOB Trust to retain at least 5% of the credit risk of the underlying assets supporting the TOB Trust’s Municipal","page_number":98,"box":{"x":68,"y":710,"width":787,"height":11}},{"id":"fbfd9853-2773-4ec6-ab98-0698965ac185","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":98,"box":{"x":70,"y":725,"width":791,"height":11}},{"id":"643a81f5-5eb8-493f-ac2c-a1c16d5cc623","block_type":"box","text":"increase the costs of such transactions in certain circumstances.","page_number":98,"box":{"x":70,"y":740,"width":466,"height":9}},{"id":"a0259a0e-707e-479c-95d8-316fc89fc548","block_type":"box","text":"TOB Trust transactions constitute an important component of the municipal bond market. Accordingly,","page_number":98,"box":{"x":101,"y":763,"width":726,"height":11}},{"id":"40f9adb6-087d-40f7-b87a-a0ff55b5ee3d","block_type":"box","text":"implementation of the Volcker Rule may adversely impact the municipal market, including through reduced demand","page_number":98,"box":{"x":70,"y":778,"width":816,"height":11}},{"id":"7cd7ca09-81d2-4f17-9f6e-efac714e7a2d","block_type":"box","text":"for and liquidity of municipal bonds and increased financing costs for municipal issuers. Any such developments","page_number":98,"box":{"x":68,"y":793,"width":799,"height":11}},{"id":"40ec214f-68f7-4cf2-b182-3b0b0cf589b9","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":98,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"a06e5481-b761-4d4c-9a41-ec51ab85762a","block_type":"box","text":"market is not yet certain.","page_number":98,"box":{"x":69,"y":823,"width":178,"height":11}},{"id":"66972319-6438-46fb-ba77-335192708b0b","block_type":"box","text":"Yields.","page_number":98,"box":{"x":103,"y":846,"width":45,"height":9}},{"id":"229cfd6b-7814-44ea-a923-77e7e4f27510","block_type":"box","text":"Yields on Municipal Bonds are dependent on a variety of factors, including the general condition of the","page_number":98,"box":{"x":154,"y":846,"width":730,"height":11}},{"id":"8619f5d9-d32b-49ae-a9b0-817960f988dd","block_type":"box","text":"money market and of the municipal bond market, the size of a particular offering, the financial condition of the","page_number":98,"box":{"x":69,"y":861,"width":788,"height":11}},{"id":"859fc7d4-a249-4346-8197-160bed58d01d","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":98,"box":{"x":70,"y":876,"width":787,"height":11}},{"id":"89b453f7-b114-470b-aac5-e7337702ef0c","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":98,"box":{"x":69,"y":891,"width":838,"height":12}},{"id":"9e5848e2-2593-4177-8ad9-549ae9ac1d90","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":98,"box":{"x":68,"y":906,"width":794,"height":12}},{"id":"f4fe7abb-439b-4b86-9bf2-224fdd5c48e6","block_type":"box","text":"II-60","page_number":98,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ec270d15-4c1c-446b-8dcf-b0cec8897faa","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":98,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"70cd348d-e846-478f-8f18-eb4d33cd643f","block_type":"box","text":"holding Municipal Bonds, both within a particular classification and between classifications, depending on numerous","page_number":99,"box":{"x":69,"y":45,"width":831,"height":11}},{"id":"da66493d-35f1-4506-a703-7db9fc477bd7","block_type":"box","text":"factors. Furthermore, the rights of owners of Municipal Bonds and the obligations of the issuer of such Municipal","page_number":99,"box":{"x":68,"y":60,"width":806,"height":11}},{"id":"20b59407-56b8-4dd6-a65b-13bd5a21aef5","block_type":"box","text":"Bonds may be subject to applicable bankruptcy, insolvency and similar laws and court decisions affecting the rights","page_number":99,"box":{"x":70,"y":75,"width":823,"height":11}},{"id":"cf411c44-3176-4141-a923-277f1e748bf2","block_type":"box","text":"of creditors generally and to general equitable principles, which may limit the enforcement of certain remedies.","page_number":99,"box":{"x":69,"y":90,"width":790,"height":11}},{"id":"f347db4a-8848-4a18-b1f6-58ee1dbb0086","block_type":"box","text":"Variable Rate Demand Obligations (“VRDOs”).","page_number":99,"box":{"x":103,"y":113,"width":323,"height":11}},{"id":"8b4d2a91-c704-486a-827c-99de854fa25c","block_type":"box","text":"VRDOs are tax-exempt obligations that contain a floating or","page_number":99,"box":{"x":432,"y":113,"width":422,"height":11}},{"id":"202a4ab8-d26e-49ef-a6bf-d88fd48e61e4","block_type":"box","text":"variable interest rate adjustment formula and a right of demand on the part of the holder thereof to receive payment","page_number":99,"box":{"x":68,"y":128,"width":830,"height":11}},{"id":"c012de1a-0ac5-4226-9973-1c209372a0ae","block_type":"box","text":"of the unpaid principal balance plus accrued interest upon a short notice period not to exceed seven days.","page_number":99,"box":{"x":69,"y":143,"width":759,"height":11}},{"id":"a056bd00-c914-4b7e-9d20-0fa7804a5f0f","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":99,"box":{"x":101,"y":166,"width":798,"height":11}},{"id":"2750a75f-e31f-456a-b1ea-65114f99da06","block_type":"box","text":"The interest rates are adjustable at periodic intervals to some prevailing market rate for similar investments, such","page_number":99,"box":{"x":68,"y":181,"width":815,"height":11}},{"id":"c32e62f7-4b54-43ea-b25f-f3a2aeccc330","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":99,"box":{"x":69,"y":196,"width":826,"height":11}},{"id":"8370b14d-6e6a-4ca2-87e7-1ebdc5f4f277","block_type":"box","text":"VRDOs on the adjustment date. The adjustments typically are based upon the Securities Industry and Financial","page_number":99,"box":{"x":68,"y":211,"width":791,"height":11}},{"id":"24da8542-16e3-475d-82c0-d73a81adcc2d","block_type":"box","text":"Markets Association (“SIFMA”) Index.","page_number":99,"box":{"x":70,"y":226,"width":264,"height":11}},{"id":"8670a325-0f82-4f07-bb1b-6135add231db","block_type":"box","text":"Because of the interest rate adjustment formula on VRDOs, VRDOs are not comparable to fixed rate securities.","page_number":99,"box":{"x":102,"y":249,"width":791,"height":11}},{"id":"28460287-2d9d-491d-88fd-a13d2649c8d2","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":99,"box":{"x":70,"y":264,"width":833,"height":11}},{"id":"65fc3da4-90e4-4bae-b1d1-8cb5a30f4ef2","block_type":"box","text":"opportunity for capital appreciation. During periods of rising interest rates, however, a Fund’s yield on a VRDO will","page_number":99,"box":{"x":69,"y":279,"width":808,"height":11}},{"id":"76a35c64-fc59-482f-85ac-8e544a709412","block_type":"box","text":"increase and the Fund’s shareholders will have a reduced risk of capital depreciation.","page_number":99,"box":{"x":70,"y":294,"width":608,"height":11}},{"id":"7a448c9f-3ee2-41ab-8f22-3f367a271e96","block_type":"box","text":"Transactions in Financial Futures Contracts on Municipal Indexes.","page_number":99,"box":{"x":103,"y":317,"width":465,"height":11}},{"id":"ffb184c5-89bd-4753-bee0-561d443c70a5","block_type":"box","text":"The Municipal Funds and certain other funds","page_number":99,"box":{"x":574,"y":317,"width":318,"height":11}},{"id":"d6b55614-4a5a-4c28-acd7-35d2c4e3daaf","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":99,"box":{"x":69,"y":332,"width":803,"height":11}},{"id":"2a9dbd90-246c-40ac-9198-e08ad43f02de","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":99,"box":{"x":68,"y":347,"width":825,"height":11}},{"id":"574fed50-0bec-44c9-8bb5-46c0379da786","block_type":"box","text":"term, actively traded tax-exempt municipal revenue and general obligation bonds. Each bond included in the Municipal","page_number":99,"box":{"x":68,"y":362,"width":840,"height":11}},{"id":"f6ff3e7d-70e2-4ce4-b100-daa01ae28d46","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":99,"box":{"x":70,"y":377,"width":815,"height":12}},{"id":"c0a4fc2d-0b63-4354-9605-f9e087fc154d","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":99,"box":{"x":68,"y":392,"width":836,"height":12}},{"id":"342f9319-3eab-44b2-90d8-5f2cb93e8dae","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":99,"box":{"x":69,"y":407,"width":796,"height":12}},{"id":"c24a83cb-25a5-41a7-9f1a-cea12267ea25","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":99,"box":{"x":68,"y":423,"width":816,"height":11}},{"id":"f3cdd77f-db14-47d5-8552-89fbee70ada4","block_type":"box","text":"The Municipal Bond Index futures contract is traded only on the CBT. Like other contract markets, the CBT","page_number":99,"box":{"x":101,"y":445,"width":756,"height":11}},{"id":"f8553d7d-0818-4f6f-85cc-204c577ffec3","block_type":"box","text":"assures performance under futures contracts through a clearing corporation, a nonprofit organization managed by the","page_number":99,"box":{"x":69,"y":460,"width":839,"height":12}},{"id":"06093791-2201-4125-9fd1-1b8d06563fb6","block_type":"box","text":"exchange membership that is also responsible for handling daily accounting of deposits or withdrawals of margin.","page_number":99,"box":{"x":69,"y":475,"width":808,"height":12}},{"id":"66321f9e-50c9-4c93-99fd-a5948da2a3b1","block_type":"box","text":"The particular municipal bonds comprising the index underlying the Municipal Bond Index financial futures","page_number":99,"box":{"x":101,"y":498,"width":753,"height":11}},{"id":"cceffdc4-9d4b-4e4b-860e-a9ea6a8fb196","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":99,"box":{"x":69,"y":513,"width":764,"height":12}},{"id":"8e229ff4-d677-422d-98c5-4eacd69c2cc8","block_type":"box","text":"effectively all or a portion of the value of its Municipal Bonds through the use of such financial futures contracts will","page_number":99,"box":{"x":69,"y":528,"width":826,"height":12}},{"id":"afa0d8b2-9e7a-4bf7-8849-de0a15e5addf","block_type":"box","text":"depend in part on the degree to which price movements in the index underlying the financial futures contract","page_number":99,"box":{"x":69,"y":543,"width":774,"height":12}},{"id":"a2bd4ed2-8c86-4fd2-90dc-dfcde73da528","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":99,"box":{"x":69,"y":559,"width":801,"height":11}},{"id":"7d21c38b-8647-4317-b8f2-a95cd68cc037","block_type":"box","text":"disparities in the average maturity, ratings, geographical mix or structure of a Municipal Fund’s investments as","page_number":99,"box":{"x":69,"y":574,"width":788,"height":11}},{"id":"50dc0e5d-1d21-4b66-a78b-00299cacf0ff","block_type":"box","text":"compared to those comprising the Municipal Bond Index and general economic or political factors. In addition, the","page_number":99,"box":{"x":69,"y":589,"width":812,"height":11}},{"id":"7e4c2a9c-0682-4d9b-81b9-668b10a861a0","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":99,"box":{"x":69,"y":604,"width":799,"height":11}},{"id":"e6ae0050-b2e6-4699-bc36-1e281aba788d","block_type":"box","text":"additions to and deletions from the Municipal Bond Index alter its structure. The correlation between futures","page_number":99,"box":{"x":69,"y":619,"width":772,"height":11}},{"id":"cb563ee3-c16e-44c2-8f48-d3c448cef7d8","block_type":"box","text":"contracts on U.S. Government Securities and the Municipal Bonds held by a Municipal Fund may be adversely","page_number":99,"box":{"x":69,"y":634,"width":782,"height":11}},{"id":"12d76d0a-3804-4c09-b655-653e67330c74","block_type":"box","text":"affected by similar factors and the risk of imperfect correlation between movements in the prices of such futures","page_number":99,"box":{"x":69,"y":649,"width":806,"height":12}},{"id":"12756d76-ebdb-4749-8ff1-4d8664af4fb7","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":99,"box":{"x":69,"y":664,"width":823,"height":12}},{"id":"598e72dd-5e2e-47dc-9594-92e19842548e","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":99,"box":{"x":69,"y":680,"width":837,"height":11}},{"id":"5f50c15b-db30-4f69-ba14-d43cf893b15f","block_type":"box","text":"in other futures contracts. The trading of futures contracts also is subject to certain market risks, such as inadequate","page_number":99,"box":{"x":70,"y":695,"width":839,"height":11}},{"id":"40aceebf-0ecc-47dc-9bd2-0abb7aa8be14","block_type":"box","text":"trading activity, which could at times make it difficult or impossible to liquidate existing positions.","page_number":99,"box":{"x":68,"y":710,"width":693,"height":11}},{"id":"90c928a9-ce04-46cc-8661-ea074842bd1f","block_type":"box","text":"Call Rights.","page_number":99,"box":{"x":102,"y":733,"width":79,"height":11}},{"id":"42db5942-e430-4676-b135-a7398c76cd6e","block_type":"box","text":"A Fund may purchase a Municipal Bond issuer’s right to call all or a portion of such Municipal Bond","page_number":99,"box":{"x":187,"y":732,"width":708,"height":12}},{"id":"1579c7e1-ca98-4c33-8e0b-931aada818b8","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":99,"box":{"x":68,"y":748,"width":790,"height":11}},{"id":"6a143791-a516-49cf-84fb-4106f217637b","block_type":"box","text":"mandatory tender for the purchase of related Municipal Bonds, subject to certain conditions. A Call Right that is not","page_number":99,"box":{"x":69,"y":763,"width":827,"height":11}},{"id":"7d17ae34-d302-4039-8951-119aae34ade4","block_type":"box","text":"exercised prior to maturity of the related Municipal Bond will expire without value. The economic effect of holding","page_number":99,"box":{"x":69,"y":778,"width":805,"height":11}},{"id":"e8287f6d-4a80-4d64-b8f3-ceeeeb929fa8","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":99,"box":{"x":69,"y":793,"width":833,"height":11}},{"id":"9a0a136d-62d6-46a6-a05e-83817190122f","block_type":"box","text":"Certain investments in such obligations may be illiquid.","page_number":99,"box":{"x":69,"y":808,"width":393,"height":11}},{"id":"9321fa71-fb63-4d19-9c69-732a40204208","block_type":"box","text":"Municipal Interest Rate Swap Transactions.","page_number":99,"box":{"x":102,"y":831,"width":307,"height":11}},{"id":"5d7c8043-a251-4ced-b1b3-7ba085222fb1","block_type":"box","text":"In order to hedge the value of a Fund against interest rate","page_number":99,"box":{"x":417,"y":831,"width":411,"height":11}},{"id":"6f2b9d4a-8ab7-4000-a20c-e95de64dec9a","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":99,"box":{"x":68,"y":846,"width":835,"height":11}},{"id":"ab94a15d-5e51-489c-985a-4d8035e034fd","block_type":"box","text":"Market Data AAA Cash Curve swaps (“MMD Swaps”) or Securities Industry and Financial Markets Association","page_number":99,"box":{"x":70,"y":861,"width":781,"height":11}},{"id":"3910dba6-3360-40dc-9190-362464b1e876","block_type":"box","text":"Municipal Swap Index swaps (“SIFMA Swaps”). To the extent that a Fund enters into these transactions, the Fund","page_number":99,"box":{"x":70,"y":876,"width":808,"height":11}},{"id":"26094ee3-1778-4935-8313-d3400f64fcb2","block_type":"box","text":"expects to do so primarily to preserve a return or spread on a particular investment or portion of its portfolio or to","page_number":99,"box":{"x":69,"y":891,"width":814,"height":11}},{"id":"897a4fdf-e9e8-4491-a1d5-0eaa1d4c4cb8","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":99,"box":{"x":70,"y":906,"width":832,"height":12}},{"id":"0c4fa9ba-92bd-471a-9fae-f42f32d4c905","block_type":"box","text":"II-61","page_number":99,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"12d6ad82-2f15-43ea-a8f7-7aad177ee0e3","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":99,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1d5afdf1-b86a-4aaf-ba85-be6b10c12e33","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":100,"box":{"x":68,"y":45,"width":817,"height":11}},{"id":"7629618b-d334-4569-a44c-287020588639","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":100,"box":{"x":70,"y":60,"width":797,"height":11}},{"id":"4769cb56-a79d-4f85-8174-1f9e036c34cf","block_type":"box","text":"during periods of steep interest rate yield curves (","page_number":100,"box":{"x":69,"y":75,"width":356,"height":11}},{"id":"842b3555-3f61-43af-9cf0-531b4ce98e87","block_type":"box","text":"i.e.","page_number":100,"box":{"x":427,"y":75,"width":20,"height":9}},{"id":"8e36adc1-066d-4a03-8074-e9f8af76b369","block_type":"box","text":", wide differences between short-term and long-term interest","page_number":100,"box":{"x":449,"y":75,"width":433,"height":11}},{"id":"35297f98-b92c-47eb-a570-ea42a192db41","block_type":"box","text":"rates).","page_number":100,"box":{"x":69,"y":90,"width":44,"height":11}},{"id":"cb7b6877-9301-42ba-b2c5-b0d5576c7c45","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":100,"box":{"x":101,"y":113,"width":807,"height":11}},{"id":"935e7c75-a6d7-47b2-ba45-666f78129c7c","block_type":"box","text":"another party their respective commitments to pay or receive interest (","page_number":100,"box":{"x":69,"y":128,"width":503,"height":11}},{"id":"3b4f3090-59d0-4142-89ea-b00049acf8d9","block_type":"box","text":"e.g.","page_number":100,"box":{"x":574,"y":129,"width":25,"height":10}},{"id":"5732093a-e5c2-4cfd-9ace-a365d4466030","block_type":"box","text":", an exchange of fixed rate payments for","page_number":100,"box":{"x":601,"y":128,"width":286,"height":11}},{"id":"ea799581-df05-47e8-aba4-c2a4f33bc53c","block_type":"box","text":"floating rate payments linked to the SIFMA Municipal Swap Index). Because the underlying index is a tax-exempt","page_number":100,"box":{"x":68,"y":143,"width":798,"height":11}},{"id":"3c3445cd-6e77-46b1-8a11-073175a96ab6","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":100,"box":{"x":70,"y":158,"width":778,"height":11}},{"id":"55a69fd7-91e4-427b-bd51-8b12995f5ebb","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":100,"box":{"x":69,"y":173,"width":833,"height":11}},{"id":"cc53ec2b-bf38-4345-b737-02e015d03bb9","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":100,"box":{"x":69,"y":188,"width":823,"height":11}},{"id":"7f750e14-2956-46fe-8a6d-6542a77b873d","block_type":"box","text":"with the same attributes as the swap (","page_number":100,"box":{"x":68,"y":204,"width":275,"height":10}},{"id":"d0df87f1-65b9-4d28-badb-ad5eabc119dc","block_type":"box","text":"e.g.","page_number":100,"box":{"x":345,"y":205,"width":24,"height":10}},{"id":"c42868ea-1bf7-4337-bbc2-cb0b968a2b8e","block_type":"box","text":", coupon, maturity, call feature).","page_number":100,"box":{"x":372,"y":203,"width":224,"height":12}},{"id":"6d05a1c6-40b6-457e-bab5-6bbc0aed995e","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":100,"box":{"x":101,"y":226,"width":797,"height":11}},{"id":"eaa0f451-2626-47a2-9690-21734a423755","block_type":"box","text":"to lock in a specified municipal interest rate for a portion of its portfolio to preserve a return on a particular","page_number":100,"box":{"x":68,"y":241,"width":770,"height":11}},{"id":"2e73deff-5244-4a6b-9c5a-9adbf8e18472","block_type":"box","text":"investment or a portion of its portfolio as a duration management technique or to protect against any increase in the","page_number":100,"box":{"x":70,"y":256,"width":832,"height":12}},{"id":"dea11fd7-8914-4627-8e56-ffe99c8d68aa","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":100,"box":{"x":70,"y":271,"width":805,"height":12}},{"id":"280a6b63-8198-4a85-839f-5135959274f5","block_type":"box","text":"short position, allowing the Fund to select the most attractive part of the yield curve. An MMD Swap is a contract","page_number":100,"box":{"x":69,"y":286,"width":808,"height":12}},{"id":"df63a938-a696-4e07-a0f7-7c5f8f35e33b","block_type":"box","text":"between a Fund and an MMD Swap provider pursuant to which the parties agree to make payments to each other on","page_number":100,"box":{"x":69,"y":302,"width":832,"height":11}},{"id":"19bb9596-fbec-49e1-8415-d734b2c48cb8","block_type":"box","text":"a notional amount, contingent upon whether the Municipal Market Data AAA General Obligation Scale is above or","page_number":100,"box":{"x":69,"y":317,"width":804,"height":11}},{"id":"fa03612a-779b-4eaf-b5cd-72d83439f34f","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":100,"box":{"x":69,"y":332,"width":803,"height":11}},{"id":"f28f33a4-9ff1-4990-b5fe-0583eab69951","block_type":"box","text":"Municipal Market Data AAA General Obligation Scale is below the specified level on the expiration date, the","page_number":100,"box":{"x":70,"y":347,"width":763,"height":11}},{"id":"3d0b20ea-bd9d-440c-bbb0-fd600b2b00e6","block_type":"box","text":"counterparty to the contract will make a payment to the Fund equal to the specified level minus the actual level,","page_number":100,"box":{"x":69,"y":362,"width":797,"height":11}},{"id":"f279e7b2-8389-47ad-af13-b22bb0c27a2c","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":100,"box":{"x":69,"y":377,"width":836,"height":12}},{"id":"388b18b0-c856-46de-848b-280068b7ea69","block_type":"box","text":"the specified level on the expiration date, a Fund will make a payment to the counterparty equal to the actual level","page_number":100,"box":{"x":68,"y":392,"width":816,"height":12}},{"id":"230e6c47-739e-4661-aa30-3c5a430aa3b3","block_type":"box","text":"minus the specified level, multiplied by the notional amount of the contract.","page_number":100,"box":{"x":69,"y":407,"width":537,"height":12}},{"id":"87920576-2cac-4b2c-a1af-2e31f3274777","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":100,"box":{"x":102,"y":430,"width":788,"height":11}},{"id":"aea15e38-0815-4f8d-8df0-b662524a714d","block_type":"box","text":"opposite direction than anticipated by a Fund, which would cause the Fund to make payments to its counterparty in","page_number":100,"box":{"x":69,"y":446,"width":821,"height":10}},{"id":"ca342ffd-e628-4f9c-bc84-d9396cbea1f7","block_type":"box","text":"the transaction that could adversely affect the Fund’s performance.","page_number":100,"box":{"x":68,"y":460,"width":482,"height":12}},{"id":"70e26e2f-a9f1-4489-8a04-626c3c7b0f0f","block_type":"box","text":"Insured Municipal Bonds.","page_number":100,"box":{"x":102,"y":483,"width":179,"height":11}},{"id":"6391e39f-ff88-41ce-8cbf-fea921668122","block_type":"box","text":"Bonds purchased by a Fund may be covered by insurance that guarantees that interest","page_number":100,"box":{"x":288,"y":483,"width":619,"height":11}},{"id":"4d0184c0-2c8b-4405-86f4-bc8568b32ecf","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":100,"box":{"x":70,"y":498,"width":835,"height":11}},{"id":"c595e36c-9103-43b2-b390-7ce19325ebdd","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":100,"box":{"x":69,"y":513,"width":840,"height":12}},{"id":"6a9f7aeb-16eb-45b3-b307-e40332344791","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":100,"box":{"x":69,"y":528,"width":818,"height":12}},{"id":"67e5bcea-3999-4eaa-bf2c-bd2df794e395","block_type":"box","text":"shareholders against losses caused by declines in a bond’s market value. Also, the Fund cannot be certain that any","page_number":100,"box":{"x":69,"y":544,"width":829,"height":11}},{"id":"dd9d40b9-5c3b-416e-bc5f-722f50a8d506","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":100,"box":{"x":70,"y":559,"width":827,"height":11}},{"id":"8f55e9a0-b04c-4747-a82f-d3cbf472ae8d","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":100,"box":{"x":70,"y":574,"width":815,"height":11}},{"id":"ccbf0e69-8f22-4699-9924-91363e1c8e7c","block_type":"box","text":"ability, financial strength, or equivalent ratings of at least investment grade. However, if insurance from insurers with","page_number":100,"box":{"x":69,"y":589,"width":829,"height":11}},{"id":"4130afcc-dd42-4035-ad56-0c9f0c18c7e9","block_type":"box","text":"these ratings is not available, the Fund may use insurance companies with lower ratings or stop purchasing","page_number":100,"box":{"x":68,"y":604,"width":767,"height":11}},{"id":"343922cb-9b61-43a4-ad0e-7f841caab993","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":100,"box":{"x":70,"y":619,"width":827,"height":11}},{"id":"a64e3a41-3564-449e-8fb9-4adb5b13f2e5","block_type":"box","text":"bond could drop.","page_number":100,"box":{"x":69,"y":634,"width":118,"height":11}},{"id":"538005e2-b392-42a3-a8a2-65d8ab937e22","block_type":"box","text":"Build America Bonds.","page_number":100,"box":{"x":102,"y":657,"width":150,"height":9}},{"id":"a8c57ada-6870-49aa-b47d-98bd643dfee3","block_type":"box","text":"If a Fund holds Build America Bonds, the Fund may be eligible to receive a U.S. federal","page_number":100,"box":{"x":259,"y":657,"width":616,"height":11}},{"id":"446e453d-7026-4729-91e0-fa1db5a2d0cc","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":100,"box":{"x":70,"y":672,"width":825,"height":11}},{"id":"c67ba08d-5c5a-4910-8564-20586a3f1c00","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":100,"box":{"x":68,"y":687,"width":824,"height":11}},{"id":"9d0586e5-7539-432e-9bd5-a9382976f942","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":100,"box":{"x":70,"y":702,"width":833,"height":11}},{"id":"044b3f3d-296f-420c-97d2-33fb8d519c39","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":100,"box":{"x":69,"y":717,"width":815,"height":12}},{"id":"a71a2936-ef8a-4e9d-ad41-ac6d88e42d3d","block_type":"box","text":"minimum distribution requirement, the Fund may elect for U.S. federal income tax purposes to pass through to","page_number":100,"box":{"x":69,"y":732,"width":788,"height":12}},{"id":"fc9a7535-b3ad-429c-abc8-4e2bd013abc5","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":100,"box":{"x":69,"y":748,"width":823,"height":11}},{"id":"80c10739-2ddf-4f62-bc03-33f4a72fb9c4","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":100,"box":{"x":70,"y":763,"width":825,"height":11}},{"id":"fb71ba3f-3a5a-4bd3-afe7-0458a42de52e","block_type":"box","text":"clean renewable energy bond, a qualified energy conservation bond, or a qualified zone academy bond, each of which","page_number":100,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"e9bce646-e21b-4d53-95a3-dea3017a32d0","block_type":"box","text":"must meet certain requirements specified in the Code), a “Build America Bond” (which includes certain qualified","page_number":100,"box":{"x":69,"y":793,"width":802,"height":11}},{"id":"01c5deaa-3fe3-4dcd-9260-32d635ec3192","block_type":"box","text":"bonds issued before January 1, 2011) or certain other specified bonds. If the Fund were to so elect, a shareholder","page_number":100,"box":{"x":69,"y":808,"width":821,"height":11}},{"id":"2de8f286-ff0d-4ce1-8027-abd55a948361","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":100,"box":{"x":68,"y":823,"width":760,"height":11}},{"id":"f4fff625-9244-4beb-89ed-7e0860cbdd22","block_type":"box","text":"proportionate share of such credits, and such amount would be subject to withholding provisions of the Code.","page_number":100,"box":{"x":70,"y":838,"width":782,"height":12}},{"id":"237973fa-85de-47b5-8b29-ebfbd03db26e","block_type":"box","text":"Certain limitations may apply on the extent to which the credit may be claimed.","page_number":100,"box":{"x":69,"y":854,"width":563,"height":11}},{"id":"2e1deefb-517f-455c-99b0-9a2ef826962f","block_type":"box","text":"Tax-Exempt Municipal Investments.","page_number":100,"box":{"x":103,"y":876,"width":246,"height":11}},{"id":"9b67bf6d-d440-450f-8092-96e633a0ee8a","block_type":"box","text":"Certain Funds may hold tax-exempt municipal investments which may be in","page_number":100,"box":{"x":355,"y":876,"width":534,"height":11}},{"id":"b9cc88e7-c219-4e0d-a2a6-c63f2dcba6a7","block_type":"box","text":"the form of tender option bonds, variable rate demand obligations, participations, beneficial interests in a trust,","page_number":100,"box":{"x":68,"y":891,"width":798,"height":12}},{"id":"39111e91-0c17-41bb-9423-2e75a0460975","block_type":"box","text":"partnership interests or other forms. These investments are described in greater detail above in this section. Some","page_number":100,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"528c61d4-7fd0-4866-89f0-6e0348fd6a52","block_type":"box","text":"II-62","page_number":100,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d71a22bd-475a-4ef3-8810-20846de3ef98","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":100,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"cd2da8a5-b1ac-4203-b2be-1b70c8bf6f0f","block_type":"box","text":"of the structures used by certain Funds include interests in long-term fixed-rate municipal debt obligations, held by a","page_number":101,"box":{"x":69,"y":45,"width":830,"height":11}},{"id":"202c248e-fd5a-4296-8842-13c118bdea84","block_type":"box","text":"trustee or custodian, that are coupled with tender option, demand and other features when the tax-exempt municipal","page_number":101,"box":{"x":68,"y":60,"width":832,"height":11}},{"id":"689e15d0-2e29-4a8e-859c-6b36c14d0d8c","block_type":"box","text":"investments are created. Together, these features entitle the holder of the interest to tender (or put) the underlying","page_number":101,"box":{"x":70,"y":75,"width":819,"height":11}},{"id":"6690b4f2-abcb-41dd-b7cd-c204476e04d7","block_type":"box","text":"municipal debt obligation to a third party at periodic intervals and to receive the principal amount thereof.","page_number":101,"box":{"x":69,"y":90,"width":752,"height":11}},{"id":"de900894-81e5-43ad-8a53-23800dc291d4","block_type":"box","text":"In some cases, municipal debt obligations are represented by custodial receipts evidencing rights to receive","page_number":101,"box":{"x":102,"y":113,"width":770,"height":11}},{"id":"3dc74920-e679-4af2-864e-c4312fefaa7b","block_type":"box","text":"specific future interest payments, principal payments, or both, on the underlying securities held by the custodian.","page_number":101,"box":{"x":69,"y":128,"width":806,"height":11}},{"id":"08aef389-8b14-4e4a-ba47-c76a6eaff854","block_type":"box","text":"Under such arrangements, the holder of the custodial receipt has the option to tender the underlying securities at","page_number":101,"box":{"x":70,"y":143,"width":809,"height":11}},{"id":"d3f1b9c6-d957-4837-aca1-ee7c4ea17577","block_type":"box","text":"their face value to the sponsor (","page_number":101,"box":{"x":68,"y":158,"width":228,"height":11}},{"id":"b5914db1-a315-4c4d-ab17-10e9b40735b8","block_type":"box","text":"e.g.","page_number":101,"box":{"x":297,"y":160,"width":25,"height":9}},{"id":"ee09e5f5-87c2-4f6a-9156-5690ca4f9d2a","block_type":"box","text":", a Fund, or a bank or broker-dealer or other financial institution), which is paid","page_number":101,"box":{"x":325,"y":158,"width":557,"height":11}},{"id":"9fb1472f-f5bd-4c28-a88a-ab55c4179469","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":101,"box":{"x":70,"y":173,"width":803,"height":11}},{"id":"879d2c58-1ee2-4af6-83d6-6c72bfe8c687","block_type":"box","text":"securities, coupled with the tender option, to trade at par on the date of a rate adjustment.","page_number":101,"box":{"x":69,"y":188,"width":648,"height":11}},{"id":"e5e106b9-5e51-4868-a73e-99da5754dabe","block_type":"box","text":"A participation interest gives the Fund an undivided interest in a Municipal Bond in the proportion the Fund’s","page_number":101,"box":{"x":101,"y":211,"width":775,"height":11}},{"id":"742a5bfe-0bba-47de-9dc1-0db5e36430ae","block_type":"box","text":"participation bears to the total principal amount of the Municipal Bond, and typically provides for a repurchase","page_number":101,"box":{"x":70,"y":226,"width":785,"height":11}},{"id":"538ad82b-7599-4293-8ca1-3696d46ce49f","block_type":"box","text":"feature for all or any part of the full principal amount of the participation interest, plus accrued interest. Trusts and","page_number":101,"box":{"x":68,"y":241,"width":821,"height":11}},{"id":"348cf9f1-1c37-4c08-8b72-87d81a8e2f1a","block_type":"box","text":"partnerships are typically used to convert long-term fixed rate high quality bonds of a single state or municipal issuer","page_number":101,"box":{"x":70,"y":256,"width":833,"height":12}},{"id":"f375843e-3918-41df-9b0c-56b8c92f4e74","block_type":"box","text":"into variable or floating rate demand instruments.","page_number":101,"box":{"x":70,"y":271,"width":351,"height":12}},{"id":"9c5ef72b-9f17-4548-bc8b-bee9ee81812b","block_type":"box","text":"The Municipal Bond Funds may hold participation interests and custodial receipts for municipal debt obligations","page_number":101,"box":{"x":101,"y":294,"width":797,"height":11}},{"id":"40402fc4-9dc9-4c28-ab0a-f37bcae8c35b","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":101,"box":{"x":68,"y":309,"width":836,"height":11}},{"id":"0c667846-9196-4c94-858a-5d2a308590c1","block_type":"box","text":"not ruled on whether the interest received on tax-exempt municipal investments in the form of participation interests","page_number":101,"box":{"x":69,"y":324,"width":831,"height":11}},{"id":"ed6b2b70-fa24-426b-9bb7-e12742fa7c89","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":101,"box":{"x":69,"y":339,"width":809,"height":12}},{"id":"5c3b99d7-7141-48bd-940e-550801c52617","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":101,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"3c5565e6-1465-412e-a6b7-0e916e1a1f53","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":101,"box":{"x":69,"y":370,"width":828,"height":11}},{"id":"46078ed1-f807-43ae-b0ee-1bc3a8340f98","block_type":"box","text":"such opinions.","page_number":101,"box":{"x":69,"y":385,"width":102,"height":11}},{"id":"ea2150de-dd13-48ae-9bfe-b8865f5ce686","block_type":"box","text":"Operational and Technology Risks.","page_number":101,"box":{"x":102,"y":408,"width":250,"height":11}},{"id":"6a60e628-3ce4-4713-bf0b-0b09a3a78231","block_type":"box","text":"The Fund and the entities with which it interacts directly or indirectly are","page_number":101,"box":{"x":358,"y":408,"width":512,"height":11}},{"id":"cfe7fa5a-37b8-43b5-9437-26b37a3c2296","block_type":"box","text":"susceptible to operational and technology risks, including those related to human errors, processing errors,","page_number":101,"box":{"x":69,"y":423,"width":766,"height":11}},{"id":"b64c9685-3542-4e6e-bb56-7b6ee0c98752","block_type":"box","text":"communication errors, systems failures, cybersecurity incidents, and the use of artificial intelligence and machine","page_number":101,"box":{"x":69,"y":438,"width":812,"height":11}},{"id":"c604b105-f60e-4224-bfaa-f2a5673a7853","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":101,"box":{"x":70,"y":453,"width":820,"height":11}},{"id":"a08081b8-431e-45ee-8fb7-faa16b5dd0b2","block_type":"box","text":"entities include, but are not limited to, the Fund’s adviser, administrator, distributor, other service providers (e.g.,","page_number":101,"box":{"x":69,"y":468,"width":807,"height":11}},{"id":"29ab667d-bf6d-4c48-bfd7-9decfcae4c35","block_type":"box","text":"index and benchmark providers, accountants, custodians, and transfer agents), financial intermediaries,","page_number":101,"box":{"x":70,"y":483,"width":741,"height":11}},{"id":"8b3961d2-0c73-47a4-ba14-e3872ace0c99","block_type":"box","text":"counterparties, market makers, Authorized Participants, listing exchanges, other financial market operators, and","page_number":101,"box":{"x":69,"y":498,"width":802,"height":11}},{"id":"a41430bc-4217-41a7-84a8-c7cb3424c2bd","block_type":"box","text":"governmental authorities, as applicable. Operational and technology risks for the issuers in which the Fund invests","page_number":101,"box":{"x":68,"y":513,"width":818,"height":12}},{"id":"505dd724-7877-460b-a34c-1be8a58827ea","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":101,"box":{"x":69,"y":528,"width":827,"height":12}},{"id":"78216ed7-d162-45f8-b131-025c028c9390","block_type":"box","text":"issuers to lose value. The Fund may incur substantial costs in order to mitigate operational and technology risks.","page_number":101,"box":{"x":70,"y":544,"width":803,"height":11}},{"id":"767f6a4a-215f-4613-9296-3d3587b2a76a","block_type":"box","text":"Cybersecurity incidents can result from deliberate attacks or unintentional events against an issuer in which the","page_number":101,"box":{"x":102,"y":566,"width":796,"height":11}},{"id":"96396dc2-b99c-49cf-be3c-ee4ec73002d4","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":101,"box":{"x":70,"y":581,"width":790,"height":12}},{"id":"61f72b68-26f5-46a4-8cd3-6e17459eca67","block_type":"box","text":"access to systems, misappropriating assets or sensitive information, corrupting or destroying data, and causing","page_number":101,"box":{"x":69,"y":596,"width":800,"height":12}},{"id":"963eda06-8663-4d9c-801b-1c7725d13ef9","block_type":"box","text":"operational disruption. Geopolitical tension may increase the scale and sophistication of deliberate attacks,","page_number":101,"box":{"x":69,"y":612,"width":768,"height":11}},{"id":"5ebb72dc-055e-4166-8e1e-2306920b1258","block_type":"box","text":"particularly those from nation states or from entities with nation state backing. Cybersecurity incidents may result in","page_number":101,"box":{"x":70,"y":627,"width":827,"height":11}},{"id":"b3bf72fe-78cb-4052-94c0-601cbc39f0fa","block_type":"box","text":"any of the following: financial losses; interference with the Fund’s ability to calculate its NAV; disclosure of","page_number":101,"box":{"x":69,"y":642,"width":760,"height":11}},{"id":"a3f904da-6b2d-4e1a-ad2b-aeba3115872f","block_type":"box","text":"confidential information; impediments to trading; submission of erroneous trades by the Fund or erroneous","page_number":101,"box":{"x":69,"y":657,"width":763,"height":11}},{"id":"eafccc89-ef70-442b-b839-d8aa5a75fc99","block_type":"box","text":"subscription or redemption orders; the inability of the Fund or its service providers to transact business; violations of","page_number":101,"box":{"x":69,"y":672,"width":835,"height":11}},{"id":"9d5bfaaa-01cc-45e6-82d0-2800366582b6","block_type":"box","text":"applicable privacy and other laws; regulatory fines; penalties; reputational damage; reimbursement or other","page_number":101,"box":{"x":69,"y":687,"width":766,"height":11}},{"id":"cf0c56ca-b2ed-4c8a-9e2e-d743789716fc","block_type":"box","text":"compensation costs; and other legal and compliance expenses. Furthermore, cybersecurity incidents may render","page_number":101,"box":{"x":69,"y":703,"width":804,"height":11}},{"id":"bbf6033f-ca09-40f0-83a8-78ebd7054ccf","block_type":"box","text":"records of the Fund, including records relating to its assets and transactions, shareholder ownership of Fund shares,","page_number":101,"box":{"x":69,"y":717,"width":833,"height":12}},{"id":"edf42784-4140-4814-8f0c-7aca3b01013b","block_type":"box","text":"and other data integral to the Fund’s functioning, inaccessible, inaccurate or incomplete. Power outages, natural","page_number":101,"box":{"x":69,"y":732,"width":800,"height":12}},{"id":"318e8ffb-1d1d-45af-92e9-5e892553579b","block_type":"box","text":"disasters, equipment malfunctions and processing errors that threaten information and technology systems relied","page_number":101,"box":{"x":69,"y":748,"width":812,"height":11}},{"id":"7c6eaed3-24af-4f79-9501-22a1441afd2a","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":101,"box":{"x":69,"y":763,"width":777,"height":11}},{"id":"8611df70-c008-4bbb-95a2-93887e9495c9","block_type":"box","text":"systems, may also disrupt business operations or impact critical data. Recent advances in AI technology pose risks","page_number":101,"box":{"x":69,"y":778,"width":824,"height":11}},{"id":"fe46b712-d40c-4b50-85b2-75b8e32a4ad9","block_type":"box","text":"to the Fund and its portfolio investments. These advancements could harm the Fund and its portfolio investments by","page_number":101,"box":{"x":68,"y":793,"width":836,"height":11}},{"id":"236d1869-0db0-441f-a370-bdea8098d621","block_type":"box","text":"reducing the demand for both the technology and software offerings of the Fund’s portfolio investments. Additionally,","page_number":101,"box":{"x":69,"y":808,"width":833,"height":11}},{"id":"4ec872a1-3f30-493c-8921-ac7466f9fb29","block_type":"box","text":"these advancements could significantly disrupt the Fund’s portfolio investments and subject them to increased","page_number":101,"box":{"x":68,"y":823,"width":793,"height":12}},{"id":"19a84131-e6ab-416f-a8f4-72253e32e79e","block_type":"box","text":"competition, which could have a material adverse effect on business, financial condition, and results of operations.","page_number":101,"box":{"x":69,"y":838,"width":822,"height":11}},{"id":"ec24b96b-57cc-4d1a-b1dc-eb72f6c83cd3","block_type":"box","text":"AI technology advancements, including efficiency improvements, without related increases in the adoption and","page_number":101,"box":{"x":68,"y":853,"width":787,"height":12}},{"id":"2da25b36-6a03-4848-8bd3-7a59ac9966f7","block_type":"box","text":"development of such technologies, could also negatively impact demand for, and the valuation of, digital","page_number":101,"box":{"x":69,"y":869,"width":742,"height":11}},{"id":"61585546-3e48-42c1-b4f6-9088774de1d0","block_type":"box","text":"infrastructure assets.","page_number":101,"box":{"x":70,"y":884,"width":151,"height":9}},{"id":"e5643b29-fc9c-4166-b1d9-04f3692c0635","block_type":"box","text":"II-63","page_number":101,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"533861f3-6978-48be-a21c-c14f10e33fdd","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":101,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d40b38f2-8a90-4f44-9b30-02cadf73368d","block_type":"box","text":"The Fund and its portfolio investments could be exposed to the risks of AI technology if third-party service","page_number":102,"box":{"x":101,"y":45,"width":755,"height":11}},{"id":"14c61e7b-256c-4814-bafc-2eb1d5cb39b5","block_type":"box","text":"providers or any counterparties, whether or not known to the Fund, also use AI technology in their business activities.","page_number":102,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"85c2b1e1-c98f-48ea-866d-901637e31c9e","block_type":"box","text":"The Fund and its service providers may not be in a position to control the use of AI technology in third-party products","page_number":102,"box":{"x":68,"y":75,"width":833,"height":11}},{"id":"0e7a09a5-5d90-43bb-96da-92042877f78d","block_type":"box","text":"or services.","page_number":102,"box":{"x":69,"y":90,"width":82,"height":9}},{"id":"2586699a-c80a-4a58-b79c-5a08a24c9ca0","block_type":"box","text":"Use of AI technology could include the input of confidential information in contravention of applicable policies,","page_number":102,"box":{"x":102,"y":113,"width":781,"height":11}},{"id":"52d63b7f-d10d-4183-ba89-a7dc5bf7861c","block_type":"box","text":"contractual or other obligations or restrictions, resulting in such confidential information becoming accessible by","page_number":102,"box":{"x":69,"y":128,"width":801,"height":11}},{"id":"7ca36191-1ca9-4092-b1f0-d7b293f63fa3","block_type":"box","text":"other third-party AI technology applications and users.","page_number":102,"box":{"x":69,"y":143,"width":383,"height":11}},{"id":"2c8e628a-6053-497a-aa11-1beca2545140","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":102,"box":{"x":102,"y":166,"width":795,"height":11}},{"id":"097f17ba-347a-4e1e-b29d-2715ea643532","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":102,"box":{"x":69,"y":181,"width":813,"height":11}},{"id":"5f940e31-e15c-4897-8b33-a85cc3c02df5","block_type":"box","text":"relevant data into the models that AI technology utilizes to operate. Certain data in such models will inevitably","page_number":102,"box":{"x":69,"y":196,"width":785,"height":11}},{"id":"e8fc681c-68a3-4126-8816-7a2cb6bf2a15","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":102,"box":{"x":69,"y":211,"width":782,"height":11}},{"id":"3c6de087-5bf7-4a15-acd5-59654922e5ad","block_type":"box","text":"degrade the effectiveness of AI technology. The output or results of any such AI technologies may therefore be","page_number":102,"box":{"x":69,"y":226,"width":787,"height":11}},{"id":"780a608c-2762-43f0-98cb-25c9dda1b46d","block_type":"box","text":"incomplete, erroneous, distorted, or misleading. Further, AI tools may lack transparency as to how data is utilized","page_number":102,"box":{"x":70,"y":241,"width":809,"height":11}},{"id":"fd5e44ef-cec7-47de-a39d-b4948afa2a2b","block_type":"box","text":"and how outputs are generated. AI technologies may also allow the unintended introduction of vulnerabilities into","page_number":102,"box":{"x":69,"y":256,"width":805,"height":12}},{"id":"07989356-e935-4546-bb06-8ea328da067c","block_type":"box","text":"infrastructures and applications. To the extent that the Fund or its portfolio investments are exposed to the risks of","page_number":102,"box":{"x":70,"y":271,"width":822,"height":11}},{"id":"fe081506-4478-4446-89bf-443edb0551fc","block_type":"box","text":"AI technology use, any such inaccuracies or errors could have adverse impacts on the Fund or its investments.","page_number":102,"box":{"x":68,"y":287,"width":789,"height":11}},{"id":"674c91b1-c018-4101-919d-71ed8ab95140","block_type":"box","text":"Regulations related to AI technology could also impose certain obligations and costs related to monitoring and","page_number":102,"box":{"x":102,"y":309,"width":786,"height":11}},{"id":"be3a1d87-d79b-4b63-ac3f-86850c3e5b4f","block_type":"box","text":"compliance. For example, in April 2023, the Federal Trade Commission, U.S. Department of Justice, Consumer","page_number":102,"box":{"x":69,"y":324,"width":791,"height":11}},{"id":"ba5238a2-02b9-4159-9400-eae6d3d392e9","block_type":"box","text":"Financial Protection Bureau, and U.S. Equal Employment Opportunity Commission released a joint statement on","page_number":102,"box":{"x":70,"y":340,"width":796,"height":11}},{"id":"54951740-f955-4679-b96c-c38a149520ad","block_type":"box","text":"artificial intelligence demonstrating interest in monitoring the development and use of automated systems and","page_number":102,"box":{"x":69,"y":355,"width":788,"height":11}},{"id":"37cdf40a-1bb4-47e5-bdb8-05f5d5731252","block_type":"box","text":"enforcement of their respective laws and regulations. In October 2023, an executive order established new standards","page_number":102,"box":{"x":69,"y":370,"width":839,"height":11}},{"id":"ece69102-0a6d-4f41-a269-999b84827812","block_type":"box","text":"for AI safety and security. In addition to the U.S. regulatory framework, in 2024, the EU adopted the Artificial","page_number":102,"box":{"x":68,"y":385,"width":773,"height":11}},{"id":"73561bbc-047b-4ca2-b390-09c363a3fd06","block_type":"box","text":"Intelligence Act, which applies to certain AI technology and the data used to train, test, and deploy them, which may","page_number":102,"box":{"x":70,"y":400,"width":826,"height":11}},{"id":"ca900b32-93a8-43d2-a6a7-e0c9413bfbd5","block_type":"box","text":"create additional compliance burdens, higher administrative costs, and significant penalties should the Fund, the","page_number":102,"box":{"x":69,"y":415,"width":805,"height":11}},{"id":"a1bda521-4891-46e4-809d-7e24f5603b45","block_type":"box","text":"adviser, or the Fund’s portfolio investments fail to comply.","page_number":102,"box":{"x":69,"y":430,"width":412,"height":11}},{"id":"ccd06ef3-876d-4ad6-80d3-1e2465c0b69a","block_type":"box","text":"AI technology and its applications, including in the investment and financial sectors, continue to develop rapidly,","page_number":102,"box":{"x":101,"y":453,"width":797,"height":11}},{"id":"1461264d-90ca-4ad6-aa29-c4ac3947c435","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":102,"box":{"x":69,"y":468,"width":817,"height":11}},{"id":"fb19af4c-e8f3-424a-a731-2626e3ef205f","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":102,"box":{"x":68,"y":483,"width":824,"height":11}},{"id":"c354f36c-c448-4351-a5ab-de108209d563","block_type":"box","text":"or remediate all of the potential risks, challenges, or impacts of such changes.","page_number":102,"box":{"x":69,"y":498,"width":561,"height":11}},{"id":"860227f4-8387-49a3-b9c7-c024e88babf1","block_type":"box","text":"While the Fund’s service providers are required to have appropriate operational, information security and","page_number":102,"box":{"x":101,"y":521,"width":747,"height":11}},{"id":"5220d8de-7e7f-48eb-8c9c-2415375e9d63","block_type":"box","text":"cybersecurity risk management policies and procedures, their methods of risk management may differ from those of","page_number":102,"box":{"x":69,"y":536,"width":830,"height":11}},{"id":"8be5df45-f654-4792-8588-f8b955ce6370","block_type":"box","text":"the Fund in the setting of priorities, the personnel and resources available or the effectiveness of relevant controls.","page_number":102,"box":{"x":68,"y":551,"width":823,"height":11}},{"id":"212b00d4-2e61-42af-a1d5-01616567e9ea","block_type":"box","text":"The Fund and its adviser seek to reduce these risks through controls, procedures and oversight, including","page_number":102,"box":{"x":68,"y":566,"width":755,"height":11}},{"id":"a0fb6bc1-e4dd-4918-af77-e38f150421a7","block_type":"box","text":"establishing business continuity plans and risk management systems. However, there are inherent limitations in such","page_number":102,"box":{"x":69,"y":582,"width":838,"height":11}},{"id":"c507d7c2-50e7-44a4-abfb-3d6cf208bd16","block_type":"box","text":"plans and systems, including the possibility that certain risks that may affect the Fund have not been identified or","page_number":102,"box":{"x":70,"y":596,"width":812,"height":12}},{"id":"9d58bab0-f315-480c-9e2b-76699612ef31","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":102,"box":{"x":69,"y":612,"width":828,"height":11}},{"id":"f0fc2579-3669-4474-8842-efab720e06ef","block_type":"box","text":"effects of operational or information security disruptions or failures or of cybersecurity incidents; or that prevention","page_number":102,"box":{"x":69,"y":627,"width":819,"height":11}},{"id":"ea116f5b-6325-4dc6-9611-e4dd84eef934","block_type":"box","text":"and remediation efforts will not be successful or that incidents will go undetected. The Fund cannot control the","page_number":102,"box":{"x":69,"y":642,"width":792,"height":11}},{"id":"1c36349c-4fbf-4433-9fcb-badda8a7c352","block_type":"box","text":"systems, information security or other cybersecurity of the issuers in which it invests or its service providers,","page_number":102,"box":{"x":69,"y":657,"width":775,"height":11}},{"id":"d259e9a4-4612-48f1-b778-f9c564f701fa","block_type":"box","text":"counterparties, and other third parties whose activities affect the Fund.","page_number":102,"box":{"x":69,"y":672,"width":510,"height":11}},{"id":"b8c009f2-b7de-4a5a-b561-ab67f2b68ef4","block_type":"box","text":"Lastly, the regulatory climate governing cybersecurity and data protection is developing quickly and may vary","page_number":102,"box":{"x":102,"y":695,"width":771,"height":11}},{"id":"ded8b16b-d9e0-44ce-ab32-5f4b9c23b3ec","block_type":"box","text":"considerably across jurisdictions. Regulators continue to develop new rules and standards related to cybersecurity","page_number":102,"box":{"x":69,"y":710,"width":816,"height":11}},{"id":"db10ee64-b0eb-4564-9bee-42d42cb63c60","block_type":"box","text":"and data protection. Compliance with evolving regulations can be demanding and costly, requiring substantial","page_number":102,"box":{"x":69,"y":725,"width":778,"height":11}},{"id":"cd3d5023-54f2-45da-9b79-6e7274b5c5eb","block_type":"box","text":"resources to monitor and implement required changes.","page_number":102,"box":{"x":69,"y":740,"width":391,"height":11}},{"id":"fc1c1b64-a979-4b2e-a5fc-9c6065cdd8a1","block_type":"box","text":"Participation Notes.","page_number":102,"box":{"x":102,"y":763,"width":145,"height":11}},{"id":"c087cc61-6495-4bb1-aea4-958a6c6d8b4f","block_type":"box","text":"A Fund may buy participation notes from a bank or broker-dealer (“issuer”) that entitle the","page_number":102,"box":{"x":253,"y":763,"width":641,"height":11}},{"id":"24b60935-2072-401f-8d62-cf1db55d1165","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":102,"box":{"x":70,"y":778,"width":766,"height":11}},{"id":"1c8adacd-6c5b-45ad-b20b-df1d87e86fbc","block_type":"box","text":"(collectively, the “underlying security”). Participation notes are typically used when a direct investment in the","page_number":102,"box":{"x":69,"y":793,"width":772,"height":11}},{"id":"5e7b06c9-8153-4635-8ba0-eac4f49eeaaf","block_type":"box","text":"underlying security is restricted due to country-specific regulations.","page_number":102,"box":{"x":69,"y":808,"width":475,"height":11}},{"id":"9fb2c20d-cb58-4f20-879d-825657c666d7","block_type":"box","text":"The Fund is subject to counterparty risk associated with each issuer. Investment in a participation note is not","page_number":102,"box":{"x":101,"y":831,"width":782,"height":11}},{"id":"d7bcd0d2-dcd6-4c09-b712-ec533402af9d","block_type":"box","text":"the same as investment in the constituent shares of the company. A participation note represents only an obligation","page_number":102,"box":{"x":68,"y":846,"width":831,"height":11}},{"id":"04a77a52-d7c2-4b12-85fd-a369f0e3fb12","block_type":"box","text":"of the issuer to provide the Fund the economic performance equivalent to holding shares of an underlying security. A","page_number":102,"box":{"x":69,"y":861,"width":831,"height":11}},{"id":"a03af7c1-e9ec-4f8c-8b8d-325841196bd7","block_type":"box","text":"participation note does not provide any beneficial or equitable entitlement or interest in the relevant underlying","page_number":102,"box":{"x":70,"y":876,"width":789,"height":11}},{"id":"b272b097-502c-46f3-ac26-b6cae33caad1","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":102,"box":{"x":69,"y":891,"width":791,"height":12}},{"id":"487539fd-ea2f-42e6-90d5-7b70ac9dc8fe","block_type":"box","text":"participation note synthetically replicates the economic benefit of holding shares in the underlying security. Because","page_number":102,"box":{"x":70,"y":906,"width":827,"height":12}},{"id":"ff4ff26b-080e-475e-9adb-acaa3324fbdd","block_type":"box","text":"II-64","page_number":102,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c8c9790e-c230-4b93-82b1-d1a0a33f27eb","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":102,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a6333dbb-b5e1-4c58-930a-b84905ff1da5","block_type":"box","text":"a participation note is an obligation of the issuer, rather than a direct investment in shares of the underlying security,","page_number":103,"box":{"x":69,"y":45,"width":834,"height":11}},{"id":"82d0ff99-7720-4b81-b80b-02f88feab354","block_type":"box","text":"a Fund may suffer losses potentially equal to the full value of the participation note if the issuer fails to perform its","page_number":103,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"03d7ec01-687c-4ca2-a86b-7f37c4870e1b","block_type":"box","text":"obligations. A Fund attempts to mitigate that risk by purchasing only from issuers determined to be creditworthy.","page_number":103,"box":{"x":69,"y":75,"width":801,"height":11}},{"id":"3dc030a2-4332-4484-94e3-f50bc922b2a8","block_type":"box","text":"The counterparty may, but is not required to, purchase the shares of the underlying security to hedge its","page_number":103,"box":{"x":101,"y":98,"width":743,"height":11}},{"id":"7d509154-5093-4637-91b4-89e376001e56","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":103,"box":{"x":69,"y":113,"width":826,"height":11}},{"id":"5c9d68f8-d169-4835-ae04-efc7ab1c73c6","block_type":"box","text":"participation note expires or a Fund exercises the participation note and closes its position, the Fund receives a","page_number":103,"box":{"x":70,"y":128,"width":799,"height":11}},{"id":"2244099f-d6ad-4548-a7f5-2a54edc8266b","block_type":"box","text":"payment that is based upon the then-current value of the underlying security converted into U.S. dollars (less","page_number":103,"box":{"x":70,"y":143,"width":776,"height":11}},{"id":"e4a94593-ae94-41b0-bc79-badcb3d8da9a","block_type":"box","text":"transaction costs). The price, performance and liquidity of a participation note are all linked directly to the underlying","page_number":103,"box":{"x":68,"y":158,"width":834,"height":11}},{"id":"2db4122a-52c9-4894-9747-3c2623b8eb05","block_type":"box","text":"security. A Fund’s ability to redeem or exercise a participation note generally is dependent on the liquidity in the local","page_number":103,"box":{"x":69,"y":173,"width":834,"height":11}},{"id":"f9031055-9a22-4879-b067-17c8ddf3c235","block_type":"box","text":"trading market for the security underlying the participation note.","page_number":103,"box":{"x":68,"y":188,"width":454,"height":12}},{"id":"c165f064-af5b-4fdf-b491-a51ff3f8c982","block_type":"box","text":"Portfolio Turnover Rates.","page_number":103,"box":{"x":102,"y":211,"width":181,"height":9}},{"id":"a310504c-83c0-400e-ba19-af86395993ce","block_type":"box","text":"A Fund’s annual portfolio turnover rate will not be a factor preventing a sale or","page_number":103,"box":{"x":289,"y":211,"width":558,"height":11}},{"id":"238ac698-b9dd-4022-bca9-3be88c47ae2a","block_type":"box","text":"purchase when the Manager believes investment considerations warrant such sale or purchase. Although certain","page_number":103,"box":{"x":70,"y":226,"width":804,"height":11}},{"id":"32a39321-e492-4d9d-92de-c9e48520fa51","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":103,"box":{"x":70,"y":241,"width":806,"height":11}},{"id":"55789de3-9522-4bdd-9d6c-9f5e51d27228","block_type":"box","text":"substantial number of portfolio transactions. With respect to these Funds, the rate of portfolio turnover will be a","page_number":103,"box":{"x":69,"y":256,"width":800,"height":11}},{"id":"3b26667b-f72c-434c-835d-1aeaf291aae7","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":103,"box":{"x":70,"y":271,"width":818,"height":12}},{"id":"162176b9-4627-420e-bf22-ad8cc9534e6e","block_type":"box","text":"the Manager will consider the impact of transaction costs on a Fund’s tracking error. Portfolio turnover may vary","page_number":103,"box":{"x":68,"y":286,"width":800,"height":12}},{"id":"c392ed82-3036-44df-ac6d-4854138a1432","block_type":"box","text":"greatly from year to year as well as within a particular year. High portfolio turnover (","page_number":103,"box":{"x":68,"y":302,"width":595,"height":11}},{"id":"bc4b5917-43f6-4a3a-a63e-2a07b184d749","block_type":"box","text":"i.e.","page_number":103,"box":{"x":665,"y":302,"width":20,"height":9}},{"id":"97e5c3d0-a143-40f9-a08c-8dbc2a1dc40a","block_type":"box","text":", 100% or more) may result in","page_number":103,"box":{"x":687,"y":302,"width":210,"height":11}},{"id":"1f548474-09ae-47b6-a897-75a38edc850b","block_type":"box","text":"increased transaction costs to a Fund, including brokerage commissions, dealer mark-ups and other transaction","page_number":103,"box":{"x":70,"y":317,"width":797,"height":11}},{"id":"c9d51111-83ef-4674-a445-cccd690de8b2","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":103,"box":{"x":69,"y":332,"width":832,"height":11}},{"id":"921e283a-bfd1-4044-9d62-a798259668b9","block_type":"box","text":"the recognition of capital gain or loss. Given the frequency of sales, such gain or loss will likely be short-term capital","page_number":103,"box":{"x":68,"y":347,"width":831,"height":11}},{"id":"17b3aacc-907d-44af-b907-c2c8a6ba8e7a","block_type":"box","text":"gain or loss. These effects of higher than normal portfolio turnover may adversely affect a Fund’s performance.","page_number":103,"box":{"x":68,"y":362,"width":795,"height":11}},{"id":"ebf7b890-bc8e-4982-a612-e3c19707fd16","block_type":"box","text":"Preferred Stock.","page_number":103,"box":{"x":102,"y":385,"width":118,"height":9}},{"id":"ea63c49e-9028-4dea-be8a-6b3ae81e256e","block_type":"box","text":"Certain Funds may invest in preferred stocks. Preferred stock has a preference over common","page_number":103,"box":{"x":226,"y":385,"width":665,"height":11}},{"id":"fb76a640-14fd-4cc5-83f8-67cd080e7b26","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":103,"box":{"x":69,"y":400,"width":808,"height":11}},{"id":"01f48ddc-2a8f-4073-80db-6e8f7eec76e2","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":103,"box":{"x":69,"y":415,"width":834,"height":11}},{"id":"283333e9-ead8-4d4a-8cb8-05862c747716","block_type":"box","text":"varies inversely with interest rates and perceived credit risk, while the market price of convertible preferred stock","page_number":103,"box":{"x":68,"y":430,"width":808,"height":11}},{"id":"02f7ead1-652f-40fe-84ea-4fcb4b8c5399","block_type":"box","text":"generally also reflects some element of conversion value. Because preferred stock is junior to debt securities and","page_number":103,"box":{"x":68,"y":445,"width":813,"height":12}},{"id":"6279b3ce-6112-4fd6-b1f4-5ad4499c2906","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":103,"box":{"x":69,"y":460,"width":831,"height":12}},{"id":"56b4e6f9-4a01-408f-9909-eec5374b2ad8","block_type":"box","text":"of a preferred stock than in a more senior debt security with similar stated yield characteristics. Unlike interest","page_number":103,"box":{"x":69,"y":475,"width":791,"height":12}},{"id":"0cac0f68-faf5-41c7-8a79-ed7dad9324d6","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":103,"box":{"x":70,"y":491,"width":838,"height":11}},{"id":"5087f1de-15ee-44bd-8b8c-51fefce951b8","block_type":"box","text":"Preferred stock also may be subject to optional or mandatory redemption provisions.","page_number":103,"box":{"x":69,"y":506,"width":604,"height":11}},{"id":"5d49d83d-a48b-43d9-a72d-ef43bd3d210d","block_type":"box","text":"Tax-Exempt Preferred Shares.","page_number":103,"box":{"x":103,"y":528,"width":207,"height":11}},{"id":"e7c922e4-0682-4c43-9d79-03691c118ef2","block_type":"box","text":"Certain Funds may invest in preferred interests of other investment funds that pay","page_number":103,"box":{"x":316,"y":528,"width":588,"height":12}},{"id":"7b352e82-d470-4e04-ae96-17e889cb2f5e","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":103,"box":{"x":69,"y":543,"width":806,"height":12}},{"id":"5bba50ae-a1f2-4f58-9eea-1eb043700dae","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":103,"box":{"x":69,"y":559,"width":814,"height":11}},{"id":"3430bd2b-b035-43b4-88f7-eb7334964ea1","block_type":"box","text":"revenue bonds issued by state or local agencies to fund the development of low-income, multi-family housing.","page_number":103,"box":{"x":69,"y":574,"width":780,"height":11}},{"id":"d121cee9-1469-4b6e-b07b-13b6c8e2121f","block_type":"box","text":"Investment in such tax-exempt preferred shares involves many of the same issues as investing in other investment","page_number":103,"box":{"x":70,"y":589,"width":820,"height":11}},{"id":"34f46521-8fab-4b90-8b3d-6a4d883e66a0","block_type":"box","text":"companies. These investments also have additional risks, including illiquid investments risk, the absence of","page_number":103,"box":{"x":69,"y":604,"width":772,"height":11}},{"id":"fb985c79-7e57-46d5-ae24-29e418426245","block_type":"box","text":"regulation governing investment practices, capital structure and leverage, affiliated transactions and other matters,","page_number":103,"box":{"x":69,"y":619,"width":821,"height":11}},{"id":"6845e596-0c80-4749-a02e-550d961da5e8","block_type":"box","text":"and concentration of investments in particular issuers or industries. The Municipal Bond Funds will treat investments","page_number":103,"box":{"x":69,"y":634,"width":834,"height":11}},{"id":"9335ae0b-0933-40c2-a94a-7267df2de925","block_type":"box","text":"in tax-exempt preferred shares as investments in municipal bonds.","page_number":103,"box":{"x":70,"y":649,"width":474,"height":11}},{"id":"a063f15d-e3b8-4734-a156-706ad59deeff","block_type":"box","text":"Trust Preferred Securities.","page_number":103,"box":{"x":103,"y":672,"width":184,"height":9}},{"id":"ee15633b-eda1-4810-8abb-eca8c07c9fcf","block_type":"box","text":"Certain Funds may invest in trust preferred securities. Trust preferred securities are","page_number":103,"box":{"x":294,"y":672,"width":599,"height":11}},{"id":"b410dd2e-f7cc-4c4e-8abd-fe02b5b53183","block_type":"box","text":"typically issued by corporations, generally in the form of interest bearing notes with preferred securities","page_number":103,"box":{"x":68,"y":687,"width":737,"height":11}},{"id":"37a1a795-50d5-453c-b53e-0e8d807e9dfa","block_type":"box","text":"characteristics, or by an affiliated business trust of a corporation, generally in the form of beneficial interests in","page_number":103,"box":{"x":69,"y":702,"width":796,"height":12}},{"id":"a68e7c45-ef61-4e4a-aaf5-5d99011c9ead","block_type":"box","text":"subordinated debentures or similarly structured securities. The trust preferred securities market consists of both","page_number":103,"box":{"x":69,"y":717,"width":805,"height":12}},{"id":"23824660-83f2-4154-a2f4-d3f93e4ecaec","block_type":"box","text":"fixed and adjustable coupon rate securities that are either perpetual in nature or have stated maturity dates.","page_number":103,"box":{"x":68,"y":732,"width":773,"height":12}},{"id":"3534ddd6-22e3-4d4e-8997-238ddf93ce5d","block_type":"box","text":"Trust preferred securities are typically junior and fully subordinated liabilities of an issuer and benefit from a","page_number":103,"box":{"x":101,"y":755,"width":770,"height":11}},{"id":"226811a7-9dda-433d-9b81-3a40bcaddfe4","block_type":"box","text":"guarantee that is junior and fully subordinated to the other liabilities of the guarantor. In addition, trust preferred","page_number":103,"box":{"x":68,"y":770,"width":801,"height":12}},{"id":"4c69d205-07e1-4e7c-be36-2cb5b866ac8a","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":103,"box":{"x":69,"y":785,"width":830,"height":12}},{"id":"7fd0937b-493b-4481-a5fd-38adfb1c44f6","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":103,"box":{"x":69,"y":801,"width":822,"height":11}},{"id":"2f4756cf-0fe1-4bcc-b50d-86bd8cd93c78","block_type":"box","text":"for extended periods of time without default consequences to the issuer, and certain other features (such as","page_number":103,"box":{"x":68,"y":816,"width":777,"height":11}},{"id":"cfa4341e-2599-4ba6-9137-5110928e7118","block_type":"box","text":"restrictions on common dividend payments by the issuer or ultimate guarantor when full cumulative payments on the","page_number":103,"box":{"x":69,"y":831,"width":831,"height":11}},{"id":"80a56d9b-3b2c-4fed-ab75-86dcc212e910","block_type":"box","text":"trust preferred securities have not been made), these trust preferred securities are often treated as close","page_number":103,"box":{"x":68,"y":846,"width":757,"height":11}},{"id":"12d23e30-37ba-4f1b-9335-6f5371445175","block_type":"box","text":"substitutes for traditional preferred securities, both by issuers and investors.","page_number":103,"box":{"x":69,"y":861,"width":548,"height":11}},{"id":"b49d73c1-e69e-445d-8288-1bdd9533d47f","block_type":"box","text":"Trust preferred securities include but are not limited to trust originated preferred securities (“TOPRS","page_number":103,"box":{"x":101,"y":884,"width":715,"height":11}},{"id":"42c1d08c-93dc-49c3-9afd-a9f2e00ae05d","block_type":"box","text":"®","page_number":103,"box":{"x":817,"y":884,"width":5,"height":5}},{"id":"98de6d64-139a-4087-a46c-4876685d72fd","block_type":"box","text":"”); monthly","page_number":103,"box":{"x":824,"y":884,"width":77,"height":11}},{"id":"e6855a7c-f3a5-4954-bb4b-bbd8005bfa9a","block_type":"box","text":"income preferred securities (“MIPS","page_number":103,"box":{"x":70,"y":899,"width":248,"height":11}},{"id":"3df8f7f7-ce9b-4c20-83ff-cac3543d79d9","block_type":"box","text":"®","page_number":103,"box":{"x":319,"y":899,"width":6,"height":5}},{"id":"1c08b480-90bb-401e-8d3c-3354d2277a72","block_type":"box","text":"”); quarterly income bond securities (“QUIBS","page_number":103,"box":{"x":326,"y":899,"width":317,"height":11}},{"id":"db9071a7-f742-4f14-9efe-88611ce95381","block_type":"box","text":"®","page_number":103,"box":{"x":644,"y":899,"width":6,"height":5}},{"id":"8efdefcc-7f35-45db-94b2-5be73f807451","block_type":"box","text":"” ); quarterly income debt securities","page_number":103,"box":{"x":652,"y":899,"width":255,"height":11}},{"id":"2f8a2441-ac6d-4479-a370-4bbcf37a9b1e","block_type":"box","text":"II-65","page_number":103,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"5b561aee-cbdc-46bd-bc32-c842346eb7d1","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":103,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"13269478-1252-4ee1-83a7-1f3c9fea011f","block_type":"box","text":"(“QUIDS","page_number":104,"box":{"x":69,"y":45,"width":57,"height":11}},{"id":"0a48ac51-1fb0-4b38-9142-dfd2a3e534d2","block_type":"box","text":"®","page_number":104,"box":{"x":127,"y":45,"width":6,"height":4}},{"id":"827bbe24-9939-4f40-8b7d-f5581e4eb521","block_type":"box","text":"”); quarterly income preferred securities (“QUIPS","page_number":104,"box":{"x":135,"y":45,"width":346,"height":11}},{"id":"a209400d-e60d-4cb8-9fca-6b59fffe9687","block_type":"box","text":"SM","page_number":104,"box":{"x":482,"y":45,"width":11,"height":4}},{"id":"40fc1993-b341-4477-8ad6-cd81837b4c59","block_type":"box","text":"”); corporate trust securities (“CORTS","page_number":104,"box":{"x":495,"y":45,"width":267,"height":11}},{"id":"452588c8-5db1-4ec4-9878-118677572c56","block_type":"box","text":"®","page_number":104,"box":{"x":762,"y":45,"width":6,"height":4}},{"id":"54a27a03-0989-4412-866a-9268fa3d6b34","block_type":"box","text":"”); public income","page_number":104,"box":{"x":770,"y":45,"width":118,"height":11}},{"id":"1df46dfb-a818-4334-a8b5-764dad98d3c6","block_type":"box","text":"notes (“PINES","page_number":104,"box":{"x":69,"y":60,"width":99,"height":11}},{"id":"9d7e36a8-eb53-4672-838c-6c61da697b5e","block_type":"box","text":"®","page_number":104,"box":{"x":169,"y":60,"width":6,"height":5}},{"id":"ef1f3433-1f4e-4416-85f2-c0d7d417dc6e","block_type":"box","text":"”); and other trust preferred securities.","page_number":104,"box":{"x":177,"y":60,"width":275,"height":11}},{"id":"e767f9c3-9bee-4250-a47d-ba770718c909","block_type":"box","text":"Trust preferred securities are typically issued with a final maturity date, although some are perpetual in nature.","page_number":104,"box":{"x":101,"y":82,"width":790,"height":12}},{"id":"da1322e3-b578-4b76-af4e-5044ad7acc16","block_type":"box","text":"In certain instances, a final maturity date may be extended and/or the final payment of principal may be deferred at","page_number":104,"box":{"x":70,"y":98,"width":825,"height":11}},{"id":"f4fdab5b-bcdf-4516-84ba-2674a1f89335","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":104,"box":{"x":68,"y":113,"width":827,"height":11}},{"id":"39250c41-4879-4b9f-94bf-2c62a25dcd93","block_type":"box","text":"payment obligations have been met, although issuers may be able to engage in open-market repurchases without","page_number":104,"box":{"x":70,"y":128,"width":808,"height":11}},{"id":"a3e0c22c-bd7f-4848-b37a-75d4c455ca75","block_type":"box","text":"regard to whether all payments have been paid.","page_number":104,"box":{"x":69,"y":143,"width":338,"height":11}},{"id":"c97d5412-5c42-411c-bb87-5c4b9b4f54ed","block_type":"box","text":"Many trust preferred securities are issued by trusts or other special purpose entities established by operating","page_number":104,"box":{"x":102,"y":166,"width":784,"height":11}},{"id":"30ee418b-4bdb-4eff-a67f-2cb9a22ff012","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":104,"box":{"x":69,"y":181,"width":811,"height":11}},{"id":"6ffc0da0-6c44-4a85-8436-9db61746ba9a","block_type":"box","text":"sells such preferred securities to investors, it purchases debt of the operating company (with terms comparable to","page_number":104,"box":{"x":69,"y":196,"width":817,"height":11}},{"id":"8826842d-c013-4e41-af6b-20e119239ed9","block_type":"box","text":"those of the trust or special purpose entity securities), which enables the operating company to deduct for tax","page_number":104,"box":{"x":68,"y":211,"width":785,"height":11}},{"id":"7c6cb60c-f598-4840-a460-4ab9556997b4","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":104,"box":{"x":70,"y":226,"width":830,"height":11}},{"id":"9997aa4d-c9b6-409f-965c-d73cd0396204","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":104,"box":{"x":70,"y":241,"width":819,"height":11}},{"id":"2966a571-7ea7-4951-88ee-b1375dd6aa50","block_type":"box","text":"trust preferred securities are treated as owning beneficial interests in the underlying debt of the operating company.","page_number":104,"box":{"x":68,"y":256,"width":827,"height":12}},{"id":"710258bb-64e2-44bb-bf99-adc8bb3ad476","block_type":"box","text":"Accordingly, payments on the trust preferred securities are treated as interest rather than dividends for U.S. federal","page_number":104,"box":{"x":68,"y":271,"width":824,"height":12}},{"id":"803f95ed-8645-4406-a2c8-b9c9d514b2c1","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":104,"box":{"x":70,"y":286,"width":819,"height":12}},{"id":"10ab3d83-8122-42be-8b4b-42e9b5e42fe2","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":104,"box":{"x":69,"y":302,"width":817,"height":11}},{"id":"bc845c13-c8cd-40db-9813-04bc925df2b5","block_type":"box","text":"common shareholders, but would typically be subordinated to other classes of the operating company’s debt.","page_number":104,"box":{"x":69,"y":317,"width":778,"height":11}},{"id":"15a955d0-2d0b-4537-a53e-356bc288fdd6","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":104,"box":{"x":68,"y":332,"width":811,"height":11}},{"id":"21d040a1-de3d-4588-83dd-c8a813d17aac","block_type":"box","text":"debt securities.","page_number":104,"box":{"x":69,"y":347,"width":109,"height":9}},{"id":"0bba694e-2815-490b-9242-0843984427e6","block_type":"box","text":"Real Estate Investment Trusts (“REITs”).","page_number":104,"box":{"x":102,"y":370,"width":300,"height":11}},{"id":"e1aac391-31bd-4c16-abaf-b9590abbd871","block_type":"box","text":"In pursuing its investment strategy, a Fund may invest in shares of","page_number":104,"box":{"x":409,"y":370,"width":473,"height":11}},{"id":"533edb29-fae1-4e22-a466-8f3e40076ca1","block_type":"box","text":"REITs. REITs possess certain risks which differ from an investment in common stocks. REITs are financial vehicles","page_number":104,"box":{"x":70,"y":385,"width":814,"height":11}},{"id":"9454a988-ef78-442e-b889-09882160c68f","block_type":"box","text":"that pool investor’s capital to purchase or finance real estate. REITs may concentrate their investments in specific","page_number":104,"box":{"x":68,"y":400,"width":814,"height":11}},{"id":"8f406f25-b780-4aa8-aaa6-4e3de41b128c","block_type":"box","text":"geographic areas or in specific property types,","page_number":104,"box":{"x":68,"y":415,"width":329,"height":11}},{"id":"b4089e35-8b3a-4cbd-99ce-65c8e2ecde72","block_type":"box","text":"i.e.","page_number":104,"box":{"x":405,"y":415,"width":20,"height":9}},{"id":"42cbde24-06a6-4769-b5ab-359b1531bbb1","block_type":"box","text":", hotels, shopping malls, residential complexes and office","page_number":104,"box":{"x":428,"y":415,"width":411,"height":11}},{"id":"f8434910-e0a7-4b84-a7cb-74f26e313e05","block_type":"box","text":"buildings.","page_number":104,"box":{"x":69,"y":430,"width":66,"height":11}},{"id":"c029574b-abc3-4f07-9272-c7f059822bd6","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":104,"box":{"x":102,"y":453,"width":768,"height":11}},{"id":"4b034294-a06b-4b20-809c-6c8f2c20336a","block_type":"box","text":"proportionate share of the costs of the REITs’ operations. There are three general categories of REITs: Equity REITs,","page_number":104,"box":{"x":70,"y":468,"width":824,"height":11}},{"id":"f17a4508-fee6-43d2-af27-e59b9956dffa","block_type":"box","text":"Mortgage REITs and Hybrid REITs. Equity REITs invest primarily in direct fee ownership or leasehold ownership of real","page_number":104,"box":{"x":70,"y":483,"width":829,"height":11}},{"id":"6e37a66a-8e40-49d6-98bb-befb7caff849","block_type":"box","text":"property, which derive most of their income from rents. Mortgage REITs invest mostly in mortgages on real estate,","page_number":104,"box":{"x":70,"y":498,"width":813,"height":11}},{"id":"c6f891d1-3e11-4914-aef6-025f25ff1001","block_type":"box","text":"which may secure construction, development or long-term loans; the main source of their income is mortgage","page_number":104,"box":{"x":68,"y":513,"width":782,"height":12}},{"id":"2f24621c-c798-4c34-9f68-b942ebe9a66b","block_type":"box","text":"interest payments. Hybrid REITs hold both ownership and mortgage interests in real estate.","page_number":104,"box":{"x":70,"y":529,"width":649,"height":11}},{"id":"293075db-4473-4377-af61-1b777f5abb4e","block_type":"box","text":"Investing in REITs involves certain unique risks in addition to those risks associated with investing in the real","page_number":104,"box":{"x":102,"y":551,"width":776,"height":11}},{"id":"6e9db03f-9a91-4a9e-9190-100752db8f67","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":104,"box":{"x":69,"y":566,"width":822,"height":11}},{"id":"034d4b35-f827-4892-a784-b608e9ba4af0","block_type":"box","text":"adversely affected by several factors, including rising interest rates, changes in the national, state and local","page_number":104,"box":{"x":69,"y":581,"width":769,"height":12}},{"id":"03c72f6e-b0b8-4996-9fe4-59fd4e1f3867","block_type":"box","text":"economic climate and real estate conditions, occupancy and rental rates, perceptions of prospective tenants of the","page_number":104,"box":{"x":69,"y":596,"width":822,"height":12}},{"id":"daa0ef76-a2f9-4627-9d25-2ded4f48889c","block_type":"box","text":"safety, convenience and attractiveness of the properties, the ability of the owners to provide adequate management,","page_number":104,"box":{"x":69,"y":612,"width":831,"height":11}},{"id":"54a4e3c6-d106-4884-8977-31c50743f1d9","block_type":"box","text":"maintenance and insurance, the cost of complying with the Americans with Disabilities Act, increased competition","page_number":104,"box":{"x":69,"y":627,"width":810,"height":11}},{"id":"cdef6400-7fa1-4241-a09e-d6c7d09f719e","block_type":"box","text":"from new properties, the impact of present or future environmental legislation and compliance with environmental","page_number":104,"box":{"x":68,"y":642,"width":812,"height":11}},{"id":"e234e942-b509-4f6e-ab13-c0cb198d4993","block_type":"box","text":"laws, failing to maintain their exemptions from registration under the Investment Company Act, changes in real estate","page_number":104,"box":{"x":70,"y":657,"width":838,"height":11}},{"id":"33525b2e-1414-4837-a626-df8d3b4209c9","block_type":"box","text":"taxes and other operating expenses, adverse changes in governmental rules and fiscal policies, adverse changes in","page_number":104,"box":{"x":68,"y":672,"width":826,"height":11}},{"id":"8127a17e-0450-403b-b26a-792d644e1f99","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":104,"box":{"x":69,"y":687,"width":817,"height":11}},{"id":"46a7aa3c-9e31-4465-bf88-16fb18b8c4f3","block_type":"box","text":"REIT are concentrated geographically, by property type, or in certain other respects, these risks may be heightened.","page_number":104,"box":{"x":70,"y":703,"width":822,"height":11}},{"id":"2b4b034c-3702-46f2-8c86-1a2b7eafdba6","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":104,"box":{"x":70,"y":717,"width":792,"height":12}},{"id":"ced5c507-2a91-4343-b885-56b624ebed70","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":104,"box":{"x":69,"y":732,"width":834,"height":12}},{"id":"bbd78e10-bafd-432b-bad5-180687c40425","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":104,"box":{"x":69,"y":748,"width":798,"height":11}},{"id":"84aed71d-c75f-4d1b-b4e2-f95e9316bd33","block_type":"box","text":"Fund’s dividend income received from REIT shares will likely exceed the percentage of the Fund’s portfolio which is","page_number":104,"box":{"x":70,"y":763,"width":818,"height":11}},{"id":"0b6a94a6-c387-4ecb-a2f7-4e2ad17e9b0d","block_type":"box","text":"comprised of REIT shares. Ordinary REIT dividends received by the Fund and distributed to the Fund’s shareholders","page_number":104,"box":{"x":69,"y":778,"width":821,"height":11}},{"id":"404f7bad-10e6-4587-90b5-538f5bd4657c","block_type":"box","text":"will generally be taxable as ordinary income and will not constitute “qualified dividend income.” However, a non","page_number":104,"box":{"x":68,"y":793,"width":797,"height":11}},{"id":"a39521db-0968-46c8-8634-574212493d29","block_type":"box","text":"corporate taxpayer who is a direct REIT shareholder may claim a 20% “qualified business income” deduction for","page_number":104,"box":{"x":69,"y":808,"width":798,"height":11}},{"id":"2088d8a8-3c2a-4b25-900f-db3d2906b482","block_type":"box","text":"ordinary REIT dividends, and a regulated investment company may report dividends as eligible for this deduction to","page_number":104,"box":{"x":69,"y":823,"width":820,"height":12}},{"id":"352c7c5b-702b-42a9-a931-fdfc5092d79d","block_type":"box","text":"the extent the regulated investment company’s income is derived from ordinary REIT dividends (reduced by allocable","page_number":104,"box":{"x":68,"y":838,"width":831,"height":12}},{"id":"42c734d1-2408-43fa-86bd-b0b5b746a702","block_type":"box","text":"regulated investment company expenses). A shareholder may treat the dividends as such provided the regulated","page_number":104,"box":{"x":69,"y":854,"width":801,"height":11}},{"id":"1909510b-2c0e-4695-aa5c-2a6a15760f28","block_type":"box","text":"investment company and the shareholder satisfy applicable holding period requirements.","page_number":104,"box":{"x":70,"y":869,"width":631,"height":11}},{"id":"bf0011c2-71eb-4233-b0b9-418e8156d7f4","block_type":"box","text":"REITs (especially mortgage REITs) are also subject to interest rate risk. Rising interest rates may cause REIT","page_number":104,"box":{"x":102,"y":891,"width":772,"height":12}},{"id":"b443836f-582b-4edf-8f7f-db5484500515","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":104,"box":{"x":70,"y":906,"width":790,"height":12}},{"id":"507a5e17-d0d0-411f-80a9-12c38b72b05f","block_type":"box","text":"II-66","page_number":104,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b56b4465-28a6-445d-a0a1-6d3428a9158d","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":104,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"fcbab5f3-a30c-46c7-bcf1-44882be2b0f5","block_type":"box","text":"securities issued by a REIT. Rising interest rates also generally increase the costs of obtaining financing, which could","page_number":105,"box":{"x":69,"y":45,"width":834,"height":11}},{"id":"2a06c554-5ec7-47ef-aedb-93456fca2b45","block_type":"box","text":"cause the value of a Fund’s REIT investments to decline. During periods when interest rates are declining, mortgages","page_number":105,"box":{"x":69,"y":60,"width":837,"height":11}},{"id":"3d00e8e1-22d6-43a1-82f3-b72cd3e1123c","block_type":"box","text":"are often refinanced. Refinancing may reduce the yield on investments in mortgage REITs. In addition, since REITs","page_number":105,"box":{"x":69,"y":75,"width":812,"height":11}},{"id":"aee7ddcd-dfba-4329-8575-d1016be386fb","block_type":"box","text":"depend on payment under their mortgage loans and leases to generate cash to make distributions to their","page_number":105,"box":{"x":69,"y":90,"width":759,"height":11}},{"id":"2c5b7e0f-32e2-4cf5-93fb-681c7c5c6d7e","block_type":"box","text":"shareholders, investments in REITs may be adversely affected by defaults on such mortgage loans or leases.","page_number":105,"box":{"x":69,"y":105,"width":778,"height":11}},{"id":"d95b4686-be87-4ef0-aa04-d16af6d5917b","block_type":"box","text":"Investing in certain REITs, which often have small market capitalizations, may also involve the same risks as","page_number":105,"box":{"x":102,"y":128,"width":773,"height":11}},{"id":"6d06626b-4cf3-4d0d-ac5d-cb8141ad4673","block_type":"box","text":"investing in other small capitalization companies. REITs may have limited financial resources and their securities may","page_number":105,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"bf4bc2d5-78a1-44b3-97de-c79051c08824","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":105,"box":{"x":68,"y":158,"width":839,"height":11}},{"id":"f1f28350-b75e-406b-a81f-f2061c68d03b","block_type":"box","text":"company securities. Historically, small capitalization stocks, such as REITs, have been more volatile in price than the","page_number":105,"box":{"x":69,"y":173,"width":832,"height":11}},{"id":"3f06c8c2-394d-4dfe-a321-07516435ec1c","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":105,"box":{"x":70,"y":188,"width":832,"height":12}},{"id":"8de19164-0199-4cfd-b466-0dc176ad8c2f","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":105,"box":{"x":68,"y":203,"width":815,"height":12}},{"id":"995e3d46-80e5-4b40-84bb-96eaf00f054b","block_type":"box","text":"activities competitive with the REIT. REITs may own properties through joint ventures or in other circumstances in","page_number":105,"box":{"x":69,"y":219,"width":804,"height":11}},{"id":"20979e7d-bdd4-4080-80d0-e6c69d31db7d","block_type":"box","text":"which the REIT may not have control over its investments. REITs may incur significant amounts of leverage.","page_number":105,"box":{"x":68,"y":234,"width":761,"height":11}},{"id":"24b911d7-6f64-4f93-bfcd-4280fa02db0b","block_type":"box","text":"Market Risks/Recent Market Events.","page_number":105,"box":{"x":102,"y":256,"width":275,"height":11}},{"id":"6e5af6d9-58a9-4cf8-a35c-b71eaa690dda","block_type":"box","text":"Securities may decline in value due to factors affecting securities","page_number":105,"box":{"x":383,"y":256,"width":466,"height":12}},{"id":"905bbf78-b1ba-4877-83e7-3f529c7b6509","block_type":"box","text":"markets generally or particular industries represented in the markets. The value of a security may decline due to","page_number":105,"box":{"x":69,"y":271,"width":801,"height":12}},{"id":"ff39b10b-51ce-4cdd-a783-4f5b7c7d3e09","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":105,"box":{"x":68,"y":286,"width":837,"height":12}},{"id":"448f580c-8418-4696-a9bc-69aaa5df1388","block_type":"box","text":"affect a particular industry or industries, or factors that affect a particular issuer or issuers, exchange, country,","page_number":105,"box":{"x":69,"y":302,"width":795,"height":11}},{"id":"f9c8e811-a61b-44d4-8897-0181a8bde4a1","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":105,"box":{"x":68,"y":317,"width":796,"height":11}},{"id":"953cadc1-1d6b-40d5-a49e-08e3ccf799c0","block_type":"box","text":"activities could be affected by interest rates, availability of credit, inflation rates, economic uncertainty, changes in","page_number":105,"box":{"x":69,"y":332,"width":817,"height":11}},{"id":"4c8a2fcd-d528-4d17-904c-28e99a3a39c8","block_type":"box","text":"laws, trade barriers, economic sanctions, currency exchange controls, and local, regional or global events such as","page_number":105,"box":{"x":70,"y":347,"width":812,"height":11}},{"id":"38e42ecc-504b-4b98-a189-fdec7f426136","block_type":"box","text":"war, acts of terrorism, natural and environmental disasters, the spread of infectious illness or other public health","page_number":105,"box":{"x":68,"y":362,"width":807,"height":11}},{"id":"6a969643-5750-4524-8d51-539da8a808a9","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":105,"box":{"x":70,"y":377,"width":822,"height":12}},{"id":"ec31f7e8-e91b-4f8c-ad13-47eb689fe275","block_type":"box","text":"economic downturn in the securities markets, multiple asset classes may be negatively affected. These factors may","page_number":105,"box":{"x":69,"y":392,"width":828,"height":12}},{"id":"ce97f3e0-d258-4268-8390-f058ac22e680","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":105,"box":{"x":69,"y":407,"width":804,"height":12}},{"id":"f96d7296-2269-44c7-bb83-5401143d01b0","block_type":"box","text":"Fund’s profitability or result in losses. A Fund may maintain substantial trading positions that can be adversely","page_number":105,"box":{"x":70,"y":423,"width":787,"height":11}},{"id":"90334af2-92a6-4a91-b169-5ba5a2ffa40c","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":105,"box":{"x":69,"y":438,"width":819,"height":11}},{"id":"971c4382-1be0-47bb-9eb0-65a6b1704726","block_type":"box","text":"Unpredictable or unstable market conditions may result in reduced opportunities to find suitable investments to","page_number":105,"box":{"x":70,"y":453,"width":796,"height":11}},{"id":"321a45e8-2c67-49fd-8b1a-f92bfb5d0500","block_type":"box","text":"deploy capital or make it more difficult to exit and realize value from a Fund’s existing investments. It is important to","page_number":105,"box":{"x":69,"y":468,"width":832,"height":11}},{"id":"af24376c-974d-4c19-8d8a-9a97c83f683d","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":105,"box":{"x":69,"y":483,"width":831,"height":11}},{"id":"808bb8ff-edf0-440a-bdc7-b8b4bae46a03","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":105,"box":{"x":69,"y":498,"width":776,"height":11}},{"id":"ad031f9e-d83f-438a-b58b-24ef25ebe2aa","block_type":"box","text":"conditions.","page_number":105,"box":{"x":69,"y":514,"width":76,"height":8}},{"id":"22f131ad-1e62-4241-933c-f817cba3497b","block_type":"box","text":"Periods of unusually high volatility in the financial markets and restrictive credit conditions, sometimes limited to","page_number":105,"box":{"x":102,"y":536,"width":802,"height":11}},{"id":"74ab0f55-39cb-4b71-9250-a158a9c335b3","block_type":"box","text":"a particular sector or a geography, can occur. Some countries, including the United States, have adopted and/or are","page_number":105,"box":{"x":69,"y":551,"width":829,"height":11}},{"id":"aef92396-86ca-4f1c-a685-a1f4e9abde56","block_type":"box","text":"considering the adoption of more protectionist trade policies, a move away from the tighter financial industry","page_number":105,"box":{"x":69,"y":566,"width":775,"height":11}},{"id":"921a4b15-de7a-404e-8948-2f28c64cdc74","block_type":"box","text":"regulations that followed the financial crisis of 2008, and/or substantially reducing corporate taxes. The exact shape","page_number":105,"box":{"x":69,"y":581,"width":833,"height":12}},{"id":"077906de-95d3-4aca-b0b8-fbc5211df1eb","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":105,"box":{"x":69,"y":596,"width":799,"height":12}},{"id":"33ee74b4-aba6-425a-99c9-641f295c0e51","block_type":"box","text":"change, which could increase volatility, especially if the market’s expectations are not borne out. A rise in","page_number":105,"box":{"x":69,"y":612,"width":751,"height":11}},{"id":"a863d449-d248-498d-a24f-0ab0b6f20a00","block_type":"box","text":"protectionist trade policies, and the possibility of changes to some international trade agreements, could affect the","page_number":105,"box":{"x":70,"y":627,"width":822,"height":11}},{"id":"f12dfbb6-8e1d-432f-a7a6-ec820fb80a35","block_type":"box","text":"economies of many nations in ways that cannot necessarily be foreseen at the present time. In addition, geopolitical","page_number":105,"box":{"x":69,"y":642,"width":831,"height":11}},{"id":"c30fe412-0f3e-461b-a3ae-4a8931fe62b5","block_type":"box","text":"and other risks, including environmental and public health, may add to instability in world economies and markets","page_number":105,"box":{"x":69,"y":657,"width":810,"height":11}},{"id":"f881d942-e9cd-430b-a6a6-cce452e132e0","block_type":"box","text":"generally. Economies and financial markets throughout the world are increasingly interconnected. As a result, whether","page_number":105,"box":{"x":68,"y":672,"width":841,"height":11}},{"id":"96162655-bb57-4ba8-a09c-842e75fc1069","block_type":"box","text":"or not a Fund invests in securities of issuers located in or with significant exposure to countries experiencing","page_number":105,"box":{"x":69,"y":687,"width":775,"height":11}},{"id":"8fdf6bc3-439c-4212-a53e-9c305e40e6ce","block_type":"box","text":"economic, political and/or financial difficulties, the value and liquidity of the Fund’s investments may be negatively","page_number":105,"box":{"x":69,"y":702,"width":818,"height":12}},{"id":"536ac4c5-cd3c-433f-b839-e4a84e5dbb86","block_type":"box","text":"affected by such events.","page_number":105,"box":{"x":69,"y":717,"width":173,"height":12}},{"id":"507ab5f3-a4b2-49a3-9e86-50bd5ec2e323","block_type":"box","text":"Governments and regulators may take actions that affect the regulation of the Fund or the instruments in which","page_number":105,"box":{"x":102,"y":740,"width":795,"height":11}},{"id":"d167213e-e0b6-46ef-81cd-b5e02ebc52fa","block_type":"box","text":"the Fund invests, or the issuers of such instruments, in ways that are unforeseeable. Future legislation or regulation","page_number":105,"box":{"x":68,"y":755,"width":830,"height":11}},{"id":"efceae48-79a2-43ea-ae5c-df2ccf088f5a","block_type":"box","text":"or other governmental actions could limit or preclude the Fund’s abilities to achieve its investment objectives or","page_number":105,"box":{"x":69,"y":771,"width":796,"height":11}},{"id":"3b663f72-fc2c-4dd1-a378-ab2920403494","block_type":"box","text":"otherwise adversely impact an investment in the Fund. Recent policy initiatives undertaken by the U.S. government","page_number":105,"box":{"x":69,"y":786,"width":820,"height":11}},{"id":"929d1721-7c21-4d8a-9d2b-c9a93b0c179e","block_type":"box","text":"have the potential to impact international relations, trade agreements and the overall regulatory environment in ways","page_number":105,"box":{"x":69,"y":801,"width":833,"height":11}},{"id":"907d7209-81f8-4d65-9d4d-fe24462bf58e","block_type":"box","text":"that could create uncertainty and instability in domestic and global markets and could adversely affect the","page_number":105,"box":{"x":68,"y":816,"width":759,"height":11}},{"id":"b4d49f62-bed3-41cd-9169-fd388ccd900e","block_type":"box","text":"investment performance of the Fund. In particular, actions taken by the U.S. government in respect of international","page_number":105,"box":{"x":70,"y":831,"width":819,"height":11}},{"id":"c1123b65-6f52-4bb2-a7ad-48ecca5c730f","block_type":"box","text":"trade relations could lead to trade wars, increased costs for imported goods, disruptions in supply chains, reduced","page_number":105,"box":{"x":68,"y":846,"width":821,"height":11}},{"id":"a6a77062-29d5-450f-ad28-665ecac00b6e","block_type":"box","text":"foreign investment, and instability in regions where the Fund invests. Political and diplomatic events within the United","page_number":105,"box":{"x":68,"y":861,"width":837,"height":11}},{"id":"00510808-f2b8-4fda-ba61-748873058c6a","block_type":"box","text":"States, including a contentious domestic political environment, changes in political party control of one or more","page_number":105,"box":{"x":69,"y":876,"width":795,"height":11}},{"id":"17e0083b-9947-4861-a689-3d435c653000","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":105,"box":{"x":69,"y":891,"width":836,"height":12}},{"id":"c18824a1-0c02-4d4d-9ecb-8aece591c80b","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":105,"box":{"x":69,"y":906,"width":817,"height":12}},{"id":"f070a752-00a7-4ee0-b3c5-8edc91b8d705","block_type":"box","text":"II-67","page_number":105,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"afc498da-eb48-4c1c-bf0e-384a06f9d7a6","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":105,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"22a97192-a331-43f0-a95b-45a82bdc756f","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":106,"box":{"x":70,"y":45,"width":816,"height":11}},{"id":"ba843d2e-cdf8-4cb7-b13a-3c91afeeda3a","block_type":"box","text":"investor and consumer confidence and may adversely impact financial markets and the broader economy, perhaps","page_number":106,"box":{"x":70,"y":60,"width":813,"height":11}},{"id":"83d17c28-64be-4360-8a8b-1ae33d14571f","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":106,"box":{"x":69,"y":75,"width":815,"height":11}},{"id":"46b32b2c-f817-42aa-aab9-322f87252238","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":106,"box":{"x":69,"y":90,"width":836,"height":11}},{"id":"bbc903df-d8ba-479f-b9fa-5ea2fac13fda","block_type":"box","text":"economies. For example, concerns about the U.S. Government’s credit quality may cause increased volatility in the","page_number":106,"box":{"x":69,"y":105,"width":820,"height":11}},{"id":"af46a0bc-4d1b-4d73-a737-775b32535ce2","block_type":"box","text":"stock and bond markets, higher interest rates, reduced prices and liquidity of U.S. Treasury securities, and/or","page_number":106,"box":{"x":69,"y":120,"width":785,"height":12}},{"id":"00a381a3-2417-47af-a28b-3f5ea7fc6f8e","block_type":"box","text":"increased costs of various kinds of debt. Moreover, although the U.S. Government has honored its credit obligations,","page_number":106,"box":{"x":70,"y":135,"width":832,"height":12}},{"id":"e05c2c61-b774-4141-9922-7d5925cda064","block_type":"box","text":"there remains a possibility that the United States could default on its obligations. The consequences of such an","page_number":106,"box":{"x":68,"y":150,"width":799,"height":12}},{"id":"6b19be4d-2eb0-486e-8e2e-067793442bb9","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":106,"box":{"x":69,"y":166,"width":802,"height":11}},{"id":"76eebcbe-5f57-4327-bf46-40aa2ebe3b02","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":106,"box":{"x":69,"y":181,"width":746,"height":11}},{"id":"a9f47780-5319-40b1-822d-f6895118782f","block_type":"box","text":"investments.","page_number":106,"box":{"x":70,"y":196,"width":89,"height":9}},{"id":"14c8ca75-1b20-4fab-9f19-bfabca158d7c","block_type":"box","text":"The COVID-19 pandemic resulted in significant market volatility, exchange suspensions and closures, declines in","page_number":106,"box":{"x":101,"y":218,"width":802,"height":12}},{"id":"4359cdfe-a8e9-406e-9329-8855b347cddc","block_type":"box","text":"global financial markets, higher default rates, supply chain disruptions, and a substantial economic downturn in","page_number":106,"box":{"x":68,"y":234,"width":796,"height":11}},{"id":"b0494f27-2e98-4e10-8a64-8c322a4b9361","block_type":"box","text":"economies throughout the world. The impact of this coronavirus, and other epidemics and pandemics that may arise","page_number":106,"box":{"x":69,"y":249,"width":830,"height":11}},{"id":"1ee02d70-c11f-41bc-b327-f9d170e10eec","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":106,"box":{"x":70,"y":264,"width":813,"height":11}},{"id":"f1f6a272-8bc4-488b-a773-f1dbd586d0d2","block_type":"box","text":"that cannot necessarily be foreseen at the present time. These health crises may be short term or long term, and","page_number":106,"box":{"x":68,"y":279,"width":812,"height":11}},{"id":"3dd483b6-0b4b-4b0b-b4e7-50c55c6c49bc","block_type":"box","text":"may exacerbate other pre-existing political, social and economic risks, disrupt normal market conditions and","page_number":106,"box":{"x":69,"y":294,"width":771,"height":11}},{"id":"6880ed75-b5cd-4e03-9d4f-a46cfa46c42a","block_type":"box","text":"operations, and negatively impact performance. In addition, the impact of infectious diseases in emerging developing","page_number":106,"box":{"x":69,"y":309,"width":837,"height":11}},{"id":"c232173f-a455-4e41-bd65-cc4deeab3d4d","block_type":"box","text":"or emerging market countries may be greater due to less established health care systems.","page_number":106,"box":{"x":69,"y":325,"width":646,"height":11}},{"id":"d87cbbc4-dcae-478e-946f-0ed8a8afe681","block_type":"box","text":"Legal and Regulatory Risks.","page_number":106,"box":{"x":102,"y":347,"width":197,"height":11}},{"id":"893a8732-9b4d-4474-8c75-cee5303aa887","block_type":"box","text":"The Manager is part of a larger firm with multiple business lines active in multiple","page_number":106,"box":{"x":305,"y":347,"width":583,"height":11}},{"id":"b02286df-23e5-4de2-83df-ee636d23c3a2","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":106,"box":{"x":67,"y":362,"width":819,"height":11}},{"id":"ce627019-d584-4a26-bcfe-2d07f125e7e7","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":106,"box":{"x":69,"y":377,"width":820,"height":12}},{"id":"9c06fcc7-bd0d-46d3-816a-c496600e96e5","block_type":"box","text":"tax and regulatory risks, including changing laws and regulations, developing interpretations of such laws and","page_number":106,"box":{"x":68,"y":392,"width":781,"height":12}},{"id":"c41570f9-daec-486d-b3bb-4a6d17475aeb","block_type":"box","text":"regulations, as well as existing laws, and increased scrutiny by regulators and law enforcement authorities.","page_number":106,"box":{"x":69,"y":407,"width":763,"height":12}},{"id":"341bb676-581d-42c7-9338-552e5a72c2e5","block_type":"box","text":"Unexpected economic, political, regulatory and diplomatic events within the United States and abroad can trigger new","page_number":106,"box":{"x":70,"y":423,"width":838,"height":11}},{"id":"32fbe1ad-3c43-4136-9978-68c0eac0cca5","block_type":"box","text":"and complex regulations that the Manager and/or the Funds may need to comply with. The implementation of","page_number":106,"box":{"x":69,"y":438,"width":781,"height":11}},{"id":"da9d5f4b-c771-4fbe-99bc-e67a42adde41","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":106,"box":{"x":69,"y":453,"width":807,"height":11}},{"id":"415c7049-6f56-4b42-aaae-004567174cbd","block_type":"box","text":"material adverse effect on the Funds (including by imposing material costs on the Funds, reducing profit margins,","page_number":106,"box":{"x":69,"y":468,"width":807,"height":11}},{"id":"7af27187-f5e7-4dcb-9ce9-3092b089feb8","block_type":"box","text":"reducing investment opportunities or by otherwise restricting the Funds and/or the Manager).","page_number":106,"box":{"x":69,"y":483,"width":666,"height":11}},{"id":"b8b0560e-ba12-41d9-8a9d-c4c55aa90d8a","block_type":"box","text":"Tariff and Trade Policy Risks.","page_number":106,"box":{"x":103,"y":506,"width":202,"height":11}},{"id":"17dfb7a9-8099-4b14-956e-416804429f4b","block_type":"box","text":"Some countries, including the U.S., have adopted more protectionist trade policies.","page_number":106,"box":{"x":312,"y":506,"width":593,"height":11}},{"id":"18efe46c-3ef9-4a2a-ae10-9071ba6afc6e","block_type":"box","text":"The U.S. government recently altered its approach to international trade policy, resulting in significant impacts on","page_number":106,"box":{"x":68,"y":521,"width":806,"height":11}},{"id":"bd0130f8-ca4e-4633-88dc-24c7be3e6c95","block_type":"box","text":"international trade relations, certain tax and immigration policies, and other aspects of the national and international","page_number":106,"box":{"x":70,"y":536,"width":833,"height":11}},{"id":"19804f9c-760e-493a-bf7e-5ce8f87558eb","block_type":"box","text":"political and financial landscape. The rise in protectionist trade policies, slowing economic growth, changes to some","page_number":106,"box":{"x":70,"y":551,"width":827,"height":11}},{"id":"72ead644-5664-4dcf-ace8-8f27225a4719","block_type":"box","text":"major international trade agreements, risks associated with trade agreements between the U.S. and the European","page_number":106,"box":{"x":69,"y":566,"width":814,"height":11}},{"id":"ff5d3b17-9f1b-4811-a3b6-633b0e3642f7","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":106,"box":{"x":70,"y":581,"width":821,"height":12}},{"id":"065f5239-461b-4b54-aa85-c7fd8c21b1cc","block_type":"box","text":"many nations in ways that cannot necessarily be foreseen at the present time.","page_number":106,"box":{"x":69,"y":596,"width":559,"height":12}},{"id":"03a05d57-0108-4127-8800-b46c5dcf1058","block_type":"box","text":"Global trade disruption, significant introductions of trade barriers, and bilateral trade frictions, together with any","page_number":106,"box":{"x":102,"y":619,"width":796,"height":11}},{"id":"60df6717-fa27-4f02-ba3c-186ca9349605","block_type":"box","text":"future downturns in the global economy resulting therefrom, could adversely affect the financial performance of a","page_number":106,"box":{"x":68,"y":634,"width":809,"height":12}},{"id":"bdf155e5-e8be-4d56-8247-0a08a30063dc","block_type":"box","text":"Fund and its investments. Trade policy may be an ongoing source of instability, potentially resulting in significant","page_number":106,"box":{"x":70,"y":649,"width":799,"height":12}},{"id":"a8e6891f-d8c3-4cf1-8e5c-3bf31f4217ef","block_type":"box","text":"currency fluctuations and/or having other adverse effects on international markets, international trade agreements,","page_number":106,"box":{"x":69,"y":664,"width":823,"height":12}},{"id":"2c68e609-1ca8-4841-b5fa-4e9fbacc7585","block_type":"box","text":"and/or other existing cross-border cooperation arrangements (whether economic, tax, fiscal, legal, regulatory, or","page_number":106,"box":{"x":69,"y":680,"width":801,"height":11}},{"id":"c9131259-e6ec-4d81-be78-a676aa76a754","block_type":"box","text":"otherwise). To the extent trade disputes escalate globally, there could be additional significant impacts on the","page_number":106,"box":{"x":69,"y":695,"width":783,"height":11}},{"id":"cf2f7b90-1711-466b-918d-b5cf9833d57e","block_type":"box","text":"sectors or industries in which a Fund invests and other adverse impacts on a Fund’s overall performance.","page_number":106,"box":{"x":69,"y":710,"width":753,"height":11}},{"id":"23c10d18-6136-402f-a744-f6d54155c8c3","block_type":"box","text":"Geographic Risks","page_number":106,"box":{"x":102,"y":733,"width":123,"height":11}},{"id":"74f2d3ad-2f8f-4bcc-babb-d230f11d1ac8","block_type":"box","text":". Some of the companies in which the Fund invests may be located in, or otherwise connected","page_number":106,"box":{"x":226,"y":732,"width":671,"height":12}},{"id":"e42b8e19-77ad-4afb-b2ed-3b9c1a140191","block_type":"box","text":"to, parts of the world affected by natural disasters such as severe heat, earthquakes, tornadoes, volcanic eruptions,","page_number":106,"box":{"x":68,"y":748,"width":835,"height":11}},{"id":"6cc0716b-7d98-4a36-a287-1a08277b5cf6","block_type":"box","text":"wildfires, droughts, floods, hurricanes or tsunamis, and are economically sensitive to environmental events. In","page_number":106,"box":{"x":68,"y":763,"width":787,"height":11}},{"id":"0f8417d4-1f43-42c7-b841-773e646a1779","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":106,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"fff4aff5-630c-4515-a166-413377886e2b","block_type":"box","text":"types of conflict, terrorism, strained international relations and territorial disputes. Any of these events may adversely","page_number":106,"box":{"x":68,"y":793,"width":840,"height":11}},{"id":"72075c09-c87a-489e-962c-4d256846cfee","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":106,"box":{"x":69,"y":808,"width":824,"height":11}},{"id":"b06a229c-25e3-43ff-9389-b9c5694e3447","block_type":"box","text":"Fund.","page_number":106,"box":{"x":70,"y":823,"width":36,"height":9}},{"id":"16a44460-1963-4bb4-b886-0a7250aa6b63","block_type":"box","text":"Reference Rate Replacement Risk.","page_number":106,"box":{"x":102,"y":846,"width":255,"height":11}},{"id":"1fe54fcf-cfa6-41b6-85a7-d1fb353cb976","block_type":"box","text":"A Fund’s investments, payment obligations and financing terms may be","page_number":106,"box":{"x":363,"y":846,"width":508,"height":11}},{"id":"a7555ba2-2dc3-4bff-b5f0-4b2a100a879f","block_type":"box","text":"based on floating rates, such as the Secured Overnight Financing Rate (“SOFR”), Sterling Overnight Interbank Average","page_number":106,"box":{"x":69,"y":861,"width":839,"height":11}},{"id":"d550b995-50de-4f1c-b117-f13d12ecddf9","block_type":"box","text":"Rate (“SONIA”), and other similar types of reference rates (“Reference Rates”). The elimination of a Reference Rate","page_number":106,"box":{"x":70,"y":876,"width":825,"height":11}},{"id":"024f17e0-c37d-45ba-8f77-3fa8853852a2","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":106,"box":{"x":69,"y":891,"width":797,"height":12}},{"id":"d8654f9d-0b0a-4ba2-8978-b12367e94c86","block_type":"box","text":"impact on the market for, or value of, any instruments (including debt instruments and certain derivative instruments)","page_number":106,"box":{"x":70,"y":906,"width":837,"height":12}},{"id":"54f7e6a8-2421-4876-bc12-923f971d1f03","block_type":"box","text":"II-68","page_number":106,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"176c99ad-67bd-4398-a077-fde89911277d","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":106,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e09c38ad-cc82-41d2-9e25-6121c00a024d","block_type":"box","text":"or payments linked to those Reference Rates. In addition, any substitute Reference Rate and any pricing adjustments","page_number":107,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"d4e12b9d-109e-4df4-b15e-1c6f6bac780f","block_type":"box","text":"imposed by a regulator or by counterparties or otherwise may adversely affect a Fund’s performance and/or net","page_number":107,"box":{"x":70,"y":60,"width":800,"height":11}},{"id":"89775b91-0310-4ba7-9199-c7de41fe7e71","block_type":"box","text":"asset value. The London Interbank Offered Rate (“LIBOR”) had historically been used extensively in the U.S. and","page_number":107,"box":{"x":69,"y":75,"width":800,"height":11}},{"id":"9199544f-519f-44d8-b606-065a698a5814","block_type":"box","text":"globally as a “benchmark” or “reference rate” for various commercial and financial contracts, including corporate and","page_number":107,"box":{"x":68,"y":90,"width":836,"height":11}},{"id":"9553337a-85a5-496c-9efe-daf4356cfa4c","block_type":"box","text":"municipal bonds, bank loans, asset-backed and mortgage-related securities, interest rate swaps and other","page_number":107,"box":{"x":69,"y":105,"width":761,"height":11}},{"id":"c6e92f66-2fa5-4ca8-bb9b-3a76f6ae7988","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":107,"box":{"x":69,"y":120,"width":824,"height":12}},{"id":"a24d61d1-250c-4e81-a83c-de0b1552121c","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":107,"box":{"x":69,"y":135,"width":825,"height":11}},{"id":"b7a3d793-ff17-4408-9e02-65afe198271b","block_type":"box","text":"invests may have also historically obtained financing at floating rates based on LIBOR. In connection with the global","page_number":107,"box":{"x":70,"y":150,"width":822,"height":12}},{"id":"577552f7-1ee2-45eb-9a6e-bd5baf7e7846","block_type":"box","text":"transition away from LIBOR led by regulators and market participants as a result of benchmark reforms, LIBOR was","page_number":107,"box":{"x":68,"y":166,"width":822,"height":11}},{"id":"cc9f7789-086d-425f-86d3-5c31ffeda24d","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":107,"box":{"x":70,"y":181,"width":817,"height":11}},{"id":"6c6a2da1-174d-4bc6-9ae0-33f85f85892c","block_type":"box","text":"established in most major currencies and markets in these alternative rates are continuing to develop (","page_number":107,"box":{"x":69,"y":196,"width":736,"height":11}},{"id":"953590d4-0dc1-4687-83c9-59549e55cff0","block_type":"box","text":"e.g.","page_number":107,"box":{"x":807,"y":197,"width":25,"height":10}},{"id":"ed34733a-3991-4232-9f51-1dfe4dee8982","block_type":"box","text":", SOFR for","page_number":107,"box":{"x":835,"y":196,"width":70,"height":10}},{"id":"7af6a68e-5909-413b-ac53-454675938ae9","block_type":"box","text":"USD-LIBOR and SONIA for GBP-LIBOR). While the transition from LIBOR has gone relatively smoothly, residual risks","page_number":107,"box":{"x":70,"y":211,"width":814,"height":11}},{"id":"26cedf9b-0f78-46cd-a185-78f6f2323b14","block_type":"box","text":"associated with the transition may remain that may impact markets or particular investments and, as such, the full","page_number":107,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"1caacd22-ef50-4e21-843f-b05de5b28354","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":107,"box":{"x":70,"y":241,"width":784,"height":11}},{"id":"a2dcab91-f2eb-4ce9-9501-6527799cbd25","block_type":"box","text":"determined.","page_number":107,"box":{"x":69,"y":257,"width":84,"height":8}},{"id":"9ca77304-aae1-45e5-9739-218575cf8aac","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":107,"box":{"x":102,"y":279,"width":750,"height":11}},{"id":"33b82c03-9e8c-4d4b-b281-b508b91df906","block_type":"box","text":"collateralized by U.S. Treasury securities. SOFR is calculated based on transaction-level repo data collected from","page_number":107,"box":{"x":69,"y":294,"width":803,"height":11}},{"id":"049bd3c8-5023-4d66-82fb-fff1fc9b85a6","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":107,"box":{"x":68,"y":309,"width":831,"height":11}},{"id":"40d636b5-6946-497e-b176-45239727907f","block_type":"box","text":"Because SOFR is a financing rate based on overnight secured funding transactions, it differs fundamentally from","page_number":107,"box":{"x":70,"y":324,"width":801,"height":12}},{"id":"fb86218d-bf72-49a1-92ac-c1190738f884","block_type":"box","text":"LIBOR. LIBOR is intended to be an unsecured rate that represents interbank funding costs for different short-term","page_number":107,"box":{"x":70,"y":339,"width":810,"height":12}},{"id":"55fafd32-43c0-43dc-a066-3e6f3fedf936","block_type":"box","text":"maturities or tenors. It is a forward-looking rate reflecting expectations regarding interest rates for the applicable","page_number":107,"box":{"x":69,"y":355,"width":803,"height":11}},{"id":"58bddd83-8153-4075-946a-6051c068526e","block_type":"box","text":"tenor. Thus, LIBOR is intended to be sensitive, in certain respects, to bank credit risk and to term interest rate risk.","page_number":107,"box":{"x":68,"y":370,"width":825,"height":11}},{"id":"6b659a2b-d6ca-413c-9abe-446c27555fdd","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":107,"box":{"x":70,"y":385,"width":828,"height":11}},{"id":"4b1ab2fa-47b8-477f-b397-4877ae045bde","block_type":"box","text":"largely insensitive to credit-risk considerations and to short-term interest rate risks. SOFR is a transaction-based rate,","page_number":107,"box":{"x":70,"y":400,"width":838,"height":11}},{"id":"0a61a321-5327-4aba-a21f-bbc11091e550","block_type":"box","text":"and it has been more volatile than other benchmark or market rates, such as three-month LIBOR, during certain","page_number":107,"box":{"x":69,"y":415,"width":796,"height":11}},{"id":"12c5ae78-3d6a-426b-85a8-91f9238d7b81","block_type":"box","text":"periods. For these reasons, among others, there is no assurance that SOFR, or rates derived from SOFR, will perform","page_number":107,"box":{"x":70,"y":430,"width":836,"height":11}},{"id":"f04e39dd-5c5a-4be9-b96a-e87dffcbf131","block_type":"box","text":"in the same or similar way as LIBOR would have performed at any time, and there is no assurance that SOFR-based","page_number":107,"box":{"x":70,"y":445,"width":824,"height":11}},{"id":"0ff01197-048c-4048-a826-cf4be7dd63f8","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":107,"box":{"x":69,"y":460,"width":830,"height":12}},{"id":"b703c73c-1226-4292-953a-2ca6b402d488","block_type":"box","text":"2018. The future performance of SOFR, and SOFR-based Reference Rates, cannot be predicted based on SOFR’s","page_number":107,"box":{"x":69,"y":475,"width":809,"height":11}},{"id":"545cac90-1cd9-4940-b1ba-782c1c6d7e6d","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":107,"box":{"x":69,"y":491,"width":827,"height":11}},{"id":"886bc6a6-4453-4853-902f-e363221f2872","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":107,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"d58c7e1f-15b9-4644-acc4-212951445e7a","block_type":"box","text":"that is materially adverse to the interests of the Fund.","page_number":107,"box":{"x":68,"y":521,"width":384,"height":11}},{"id":"fc4f4272-6ad9-4ff2-91b8-75d105b774d3","block_type":"box","text":"In addition, interest rates or other types of rates and indices which are classified as “benchmarks” have been","page_number":107,"box":{"x":102,"y":543,"width":782,"height":12}},{"id":"570a35dc-c278-47dc-8986-eb3ba3185e68","block_type":"box","text":"the subject of ongoing national and international regulatory reform, including under the European Union (“EU”)","page_number":107,"box":{"x":68,"y":559,"width":786,"height":11}},{"id":"57be5f8a-1dde-4b59-ac69-fb6d1d8cb230","block_type":"box","text":"regulation on indices used as benchmarks in financial instruments and financial contracts (known as the","page_number":107,"box":{"x":69,"y":574,"width":746,"height":11}},{"id":"d6c15977-ca59-4623-93ec-ac451b30ecbc","block_type":"box","text":"“Benchmarks Regulation”). The Benchmarks Regulation has been enacted into United Kingdom (“UK”) law by virtue","page_number":107,"box":{"x":70,"y":589,"width":822,"height":11}},{"id":"6b690f91-9597-4144-9579-4d9bf2e87a4a","block_type":"box","text":"of the EU (Withdrawal) Act 2018 (as amended), subject to amendments made by the Benchmarks (Amendment and","page_number":107,"box":{"x":69,"y":604,"width":821,"height":11}},{"id":"012968e6-0aad-4616-9756-8b35e7eff80f","block_type":"box","text":"Transitional Provision) (EU Exit) Regulations 2019 (SI 2019/657) and other statutory instruments. Following the","page_number":107,"box":{"x":68,"y":619,"width":799,"height":11}},{"id":"a9b9e3e3-e3d4-4e6a-ac9c-71949437dd63","block_type":"box","text":"implementation of these reforms, the manner of administration of benchmarks has changed and may further change","page_number":107,"box":{"x":70,"y":634,"width":830,"height":12}},{"id":"547ec12d-8672-4565-8044-3845db94d875","block_type":"box","text":"in the future, with the result that relevant benchmarks may perform differently than in the past, the use of","page_number":107,"box":{"x":70,"y":649,"width":757,"height":12}},{"id":"edd7fa62-5f6a-44da-8b67-4cd76829cc48","block_type":"box","text":"benchmarks that are not compliant with the new standards by certain supervised entities may be restricted, and","page_number":107,"box":{"x":69,"y":665,"width":802,"height":11}},{"id":"e1f438f6-73bc-4ed6-854f-e508274e709d","block_type":"box","text":"certain benchmarks may be eliminated entirely. Such changes could cause increased market volatility and disruptions","page_number":107,"box":{"x":69,"y":680,"width":840,"height":11}},{"id":"0bf4edb2-66ba-4428-acb3-81484081a919","block_type":"box","text":"in liquidity for instruments that rely on or are impacted by such benchmarks. Additionally, there could be other","page_number":107,"box":{"x":70,"y":695,"width":782,"height":11}},{"id":"5967b632-daf4-4415-80a8-9a263191fd21","block_type":"box","text":"consequences which cannot be predicted.","page_number":107,"box":{"x":69,"y":710,"width":298,"height":11}},{"id":"86f58c12-7a9e-4fef-aa4d-40e2cab15548","block_type":"box","text":"Repurchase Agreements and Purchase and Sale Contracts.","page_number":107,"box":{"x":102,"y":733,"width":432,"height":11}},{"id":"44166a16-dd49-4518-8071-bb4e5f3aa719","block_type":"box","text":"Under repurchase agreements and purchase and","page_number":107,"box":{"x":541,"y":733,"width":347,"height":11}},{"id":"b2a432b8-aa1b-441c-88f3-274a1bcc3cec","block_type":"box","text":"sale contracts, the other party agrees, upon entering into the contract with a Fund, to repurchase a security sold to","page_number":107,"box":{"x":69,"y":748,"width":821,"height":11}},{"id":"bbad39f8-6c69-4e67-9d7b-55f94a4f6560","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":107,"box":{"x":68,"y":763,"width":815,"height":11}},{"id":"1877ec54-cd71-49a3-ae59-cc66074871e6","block_type":"box","text":"term of the agreement.","page_number":107,"box":{"x":68,"y":778,"width":164,"height":11}},{"id":"605d2af7-e677-41d4-a504-8a51879677d8","block_type":"box","text":"A purchase and sale contract differs from a repurchase agreement in that the contract arrangements stipulate","page_number":107,"box":{"x":101,"y":801,"width":788,"height":11}},{"id":"74feecb9-4bbd-4b6b-870c-16249720f4cd","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":107,"box":{"x":68,"y":816,"width":831,"height":11}},{"id":"9e6cb0c2-e76c-4247-9347-07b086317a3f","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":107,"box":{"x":70,"y":831,"width":821,"height":11}},{"id":"5f2cdf2b-08bd-43a9-955b-556e5a631733","block_type":"box","text":"on the underlying obligation; whereas, in the case of purchase and sale contracts, the prices take into account","page_number":107,"box":{"x":69,"y":846,"width":790,"height":11}},{"id":"04cf95c2-e23e-4ff4-a694-6906e7761389","block_type":"box","text":"accrued interest. A Fund may enter into “tri-party” repurchase agreements. In “tri-party” repurchase agreements, an","page_number":107,"box":{"x":69,"y":861,"width":827,"height":11}},{"id":"cfa8167e-bf1b-4c17-9d6e-556ccf1f3096","block_type":"box","text":"unaffiliated third-party custodian maintains accounts to hold collateral for the Fund and its counterparties and,","page_number":107,"box":{"x":69,"y":876,"width":788,"height":11}},{"id":"4ea9318b-f258-44bb-bbea-cd200b998bcb","block_type":"box","text":"therefore, the Fund may be subject to the credit risk of those custodians.","page_number":107,"box":{"x":68,"y":891,"width":522,"height":11}},{"id":"4aca7d7c-9ba2-4068-8732-8e465c749185","block_type":"box","text":"II-69","page_number":107,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1a52285c-c813-4389-8f1f-b98a817a1aa8","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":107,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"af2d5866-a57e-4bf2-ba93-be809c2955ab","block_type":"box","text":"Some repurchase agreements and purchase and sale contracts are structured to result in a fixed rate of return","page_number":108,"box":{"x":102,"y":45,"width":792,"height":11}},{"id":"b91896da-9585-40f3-945e-b905d0b7c686","block_type":"box","text":"insulated from market fluctuations during the term of the agreement, although such return may be affected by","page_number":108,"box":{"x":70,"y":60,"width":784,"height":11}},{"id":"79587c04-d9aa-4ef9-ae9b-ef67e2820d13","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":108,"box":{"x":69,"y":75,"width":837,"height":11}},{"id":"b39527f9-8b62-4618-bea0-ad2ac2204751","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":108,"box":{"x":69,"y":90,"width":812,"height":11}},{"id":"b1c61dbd-97c7-446d-a0b8-6745cad7e4f8","block_type":"box","text":"fluctuations of the market values of the securities underlying the contract and the accrued interest on those","page_number":108,"box":{"x":68,"y":105,"width":770,"height":11}},{"id":"6a89c666-8b6c-47cd-8f01-509ef39ed3b0","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":108,"box":{"x":69,"y":120,"width":802,"height":12}},{"id":"c0da60f8-19df-4232-9c53-27e833df21ac","block_type":"box","text":"losses arising from market fluctuations following the default.","page_number":108,"box":{"x":70,"y":135,"width":430,"height":12}},{"id":"3c9bf6bc-368e-4dc2-9f03-e46943948402","block_type":"box","text":"Both types of agreement usually cover short periods, such as less than one week, although they may have","page_number":108,"box":{"x":102,"y":158,"width":759,"height":11}},{"id":"78e3fc75-4b7c-4ffa-938a-9f06592fef7c","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":108,"box":{"x":70,"y":173,"width":765,"height":11}},{"id":"8e25741c-b06d-415a-9c36-18f736fcb30d","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":108,"box":{"x":69,"y":188,"width":835,"height":12}},{"id":"4ede2db2-9eef-4143-9951-8927c92f321a","block_type":"box","text":"sub-adviser will monitor the creditworthiness of the seller, and a Fund will require the seller to provide additional","page_number":108,"box":{"x":69,"y":203,"width":799,"height":11}},{"id":"280509c1-5cec-4311-bb09-1140b6bb2bc3","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":108,"box":{"x":69,"y":218,"width":801,"height":12}},{"id":"8eb61e03-145c-4646-8789-d558e06058a7","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":108,"box":{"x":69,"y":234,"width":826,"height":11}},{"id":"557f18cf-c0a5-4c9f-8339-c1e6eb7eb6c1","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":108,"box":{"x":70,"y":249,"width":831,"height":11}},{"id":"13e50cd5-2d37-4bcc-b9ea-e24ba18085c7","block_type":"box","text":"Securities subject to repurchase agreements (other than tri-party repurchase agreements) and purchase and sale","page_number":108,"box":{"x":69,"y":264,"width":810,"height":11}},{"id":"fc6dca07-9754-4a2e-bb38-d430ddedb4f2","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":108,"box":{"x":69,"y":279,"width":829,"height":11}},{"id":"fa22ca5a-d001-477c-b00b-0e5600c1c9db","block_type":"box","text":"or by another authorized securities depository.","page_number":108,"box":{"x":69,"y":294,"width":329,"height":11}},{"id":"ac86dbea-42d3-4814-945f-dfa769475fac","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":108,"box":{"x":102,"y":317,"width":770,"height":11}},{"id":"acae362d-4ec4-4a4d-bfe2-8264e7398e8a","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":108,"box":{"x":69,"y":332,"width":805,"height":11}},{"id":"bad8bd1c-dd17-4b79-9e0c-57287b3b2dc4","block_type":"box","text":"repurchase price. Therefore, the Fund may suffer time delays and incur costs or possible losses in connection with","page_number":108,"box":{"x":69,"y":347,"width":819,"height":11}},{"id":"b1841e33-3016-48a0-ab86-f34cf8627f71","block_type":"box","text":"disposition of the collateral. If the seller becomes insolvent and subject to liquidation or reorganization under","page_number":108,"box":{"x":69,"y":362,"width":778,"height":11}},{"id":"e66e85f2-b9df-416b-9fce-379daa8ca5ae","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":108,"box":{"x":69,"y":377,"width":832,"height":12}},{"id":"e11ed130-1258-4e10-99dd-29f881da60ed","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":108,"box":{"x":70,"y":393,"width":810,"height":11}},{"id":"bf70b673-094b-48b5-af4d-2d7d310b868c","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":108,"box":{"x":69,"y":408,"width":812,"height":11}},{"id":"a8c6724f-6a2e-4e41-ae84-fcec7c6fec7d","block_type":"box","text":"amount at least equal to the repurchase price, including accrued interest. If the seller fails to repurchase the","page_number":108,"box":{"x":69,"y":423,"width":778,"height":11}},{"id":"83d4f898-fee8-42f4-b60a-eacdc08299d1","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":108,"box":{"x":69,"y":438,"width":817,"height":11}},{"id":"b7ff5ce9-b4ee-4833-b38c-015328e3908b","block_type":"box","text":"the repurchase price.","page_number":108,"box":{"x":68,"y":453,"width":151,"height":11}},{"id":"80a13fab-9c8f-43c0-853c-923f4c6ce177","block_type":"box","text":"In any repurchase transaction to which a Fund is a party, collateral for a repurchase agreement may include cash","page_number":108,"box":{"x":102,"y":475,"width":805,"height":12}},{"id":"d55e7688-cddb-4b0e-bdb7-e69f5cd38b8c","block_type":"box","text":"items and obligations issued by the U.S. Government or its agencies or instrumentalities. For certain Funds, however,","page_number":108,"box":{"x":70,"y":491,"width":837,"height":11}},{"id":"dc094b59-d9c4-40f1-a07b-6ac4910a3c64","block_type":"box","text":"collateral may include instruments other than cash items and obligations issued by the U.S. Government or its","page_number":108,"box":{"x":69,"y":506,"width":788,"height":11}},{"id":"219f0923-e7b3-421b-bf15-12ce1ce72435","block_type":"box","text":"agencies or instrumentalities, including securities that the Fund could not hold directly under its investment","page_number":108,"box":{"x":69,"y":521,"width":767,"height":11}},{"id":"6a1a88f2-52c4-4e76-9d73-efc40dd41efb","block_type":"box","text":"strategies without the repurchase obligation.","page_number":108,"box":{"x":69,"y":536,"width":317,"height":11}},{"id":"697594ca-db7c-4590-8e94-b53b09bae9fa","block_type":"box","text":"The type of collateral underlying repurchase agreements may also pose certain risks for a Fund. Lower quality","page_number":108,"box":{"x":101,"y":559,"width":782,"height":11}},{"id":"6d73278a-afe1-4550-a73a-2ad668a76a55","block_type":"box","text":"collateral and collateral with longer maturities may be subject to greater price fluctuations than higher quality","page_number":108,"box":{"x":69,"y":574,"width":776,"height":11}},{"id":"7d433670-a6f5-404c-b974-9306cd7c539e","block_type":"box","text":"collateral and collateral with shorter maturities. If the repurchase agreement counterparty were to default, lower","page_number":108,"box":{"x":69,"y":589,"width":799,"height":11}},{"id":"c07c18c1-55ea-451c-82f6-7c127addbeec","block_type":"box","text":"quality collateral may be more difficult to liquidate than higher quality collateral. Should the counterparty default and","page_number":108,"box":{"x":69,"y":604,"width":829,"height":11}},{"id":"76c9ed21-ae52-43a2-9fbb-70b39c6d8177","block_type":"box","text":"the amount of collateral not be sufficient to cover the counterparty’s repurchase obligation, a Fund would retain the","page_number":108,"box":{"x":68,"y":619,"width":825,"height":11}},{"id":"aa41a341-8aff-4325-998a-93f98bff10c8","block_type":"box","text":"status of an unsecured creditor of the counterparty (","page_number":108,"box":{"x":69,"y":634,"width":374,"height":11}},{"id":"e44203ad-3a87-4bba-b387-c0ee8b9090c8","block_type":"box","text":"i.e.","page_number":108,"box":{"x":445,"y":634,"width":20,"height":9}},{"id":"918264d7-3a73-4fac-b639-b97ad079cd28","block_type":"box","text":", the position the Fund would normally be in if it were to hold,","page_number":108,"box":{"x":468,"y":634,"width":434,"height":11}},{"id":"43b57211-679e-4cf7-84a7-64a681e123a6","block_type":"box","text":"pursuant to its investment policies, other unsecured debt securities of the defaulting counterparty) with respect to","page_number":108,"box":{"x":70,"y":649,"width":813,"height":12}},{"id":"47d463cd-cc51-4853-839d-372e5f5f51b1","block_type":"box","text":"the amount of the shortfall. As an unsecured creditor, a Fund would be at risk of losing some or all of the principal","page_number":108,"box":{"x":68,"y":664,"width":816,"height":12}},{"id":"9ebdc74e-4b40-4912-89d0-232bec5acaa1","block_type":"box","text":"and income involved in the transaction.","page_number":108,"box":{"x":69,"y":680,"width":278,"height":9}},{"id":"acb36b90-74ad-48d9-a944-d17902f93a0c","block_type":"box","text":"Regulations adopted by global prudential regulators require certain bank-regulated counterparties and certain of","page_number":108,"box":{"x":102,"y":702,"width":800,"height":12}},{"id":"8351f98d-8a41-44fb-94ea-e0680245af90","block_type":"box","text":"their affiliates to include in certain financial contracts, including many repurchase agreements and purchase and sale","page_number":108,"box":{"x":68,"y":717,"width":840,"height":12}},{"id":"c84acd73-5161-418f-be9b-6f2308bb9a6b","block_type":"box","text":"contracts, terms that delay or restrict the rights of counterparties, such as a Fund, to terminate such agreements,","page_number":108,"box":{"x":69,"y":732,"width":814,"height":12}},{"id":"9087aed2-c126-45f2-a572-1d9f672581b0","block_type":"box","text":"take foreclosure action, exercise other default rights or restrict transfers of credit support in the event that the","page_number":108,"box":{"x":68,"y":748,"width":790,"height":11}},{"id":"9ae9af2b-8d12-4bd2-b19e-0f402bf0c05b","block_type":"box","text":"counterparty and/or its affiliates are subject to certain types of resolution or insolvency proceedings. It is possible","page_number":108,"box":{"x":69,"y":763,"width":818,"height":11}},{"id":"fa2fe1a3-82c3-4f69-b36b-fa6083dc484e","block_type":"box","text":"that these requirements, as well as potential additional government regulation and other developments in the","page_number":108,"box":{"x":68,"y":778,"width":783,"height":11}},{"id":"c922a5cf-3308-4009-bd03-61247246115e","block_type":"box","text":"market, could adversely affect a Fund’s ability to terminate existing repurchase agreements and purchase and sale","page_number":108,"box":{"x":69,"y":793,"width":821,"height":11}},{"id":"4a15c566-a749-4e31-9bf3-f6c9f0386eec","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":108,"box":{"x":69,"y":808,"width":800,"height":11}},{"id":"2db978c1-6ec5-45a5-aefa-09ad8417bf6f","block_type":"box","text":"require certain transactions involving U.S. Treasuries, including repurchase agreements, to be centrally cleared.","page_number":108,"box":{"x":69,"y":823,"width":796,"height":12}},{"id":"264d8498-9146-4604-ab92-5f95f1e226a4","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":108,"box":{"x":69,"y":838,"width":834,"height":12}},{"id":"559ad2e0-f14e-4409-9e0d-4b4ebe69929f","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":108,"box":{"x":68,"y":853,"width":824,"height":12}},{"id":"8e798c8f-3f6d-4379-9f1b-1deaa96985c4","block_type":"box","text":"adversely affect a Fund’s performance.","page_number":108,"box":{"x":69,"y":869,"width":279,"height":11}},{"id":"c0c5b154-1f49-4e32-b297-d455f4e50af2","block_type":"box","text":"Restricted Securities.","page_number":108,"box":{"x":102,"y":891,"width":157,"height":9}},{"id":"b2cd81ed-89d5-4eff-92ae-b20122599811","block_type":"box","text":"A Fund may invest in or hold securities that are not registered under the Securities Act","page_number":108,"box":{"x":265,"y":891,"width":617,"height":12}},{"id":"7ea69e5c-735a-49a4-8af6-5ee16ba69c94","block_type":"box","text":"(“restricted securities”), which may include securities in private companies and Rule 144A Securities. Restricted","page_number":108,"box":{"x":69,"y":906,"width":801,"height":12}},{"id":"3ef1b0ee-fb8c-4a6e-b64d-41312176a6bb","block_type":"box","text":"II-70","page_number":108,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7a9063d5-761e-425a-9137-09664e90b22a","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":108,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c22b5b2d-9647-4619-bbfb-05ae43ff7ed9","block_type":"box","text":"securities may be sold in private placement transactions between issuers and their purchasers, including through","page_number":109,"box":{"x":69,"y":45,"width":808,"height":11}},{"id":"b3304728-64b4-41dd-8b58-b2b998069144","block_type":"box","text":"private negotiated transactions between the issuer and their purchasers, such as the Funds, and may be neither","page_number":109,"box":{"x":70,"y":60,"width":802,"height":11}},{"id":"4d4ed99c-6822-4340-869d-8c0fe2f29489","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":109,"box":{"x":70,"y":75,"width":834,"height":11}},{"id":"c21698b6-7a81-4bc1-8e31-668c231cc078","block_type":"box","text":"freely transferable under the laws of the applicable jurisdiction or due to contractual restrictions on resale. Some of","page_number":109,"box":{"x":68,"y":90,"width":825,"height":11}},{"id":"01f8976a-750c-402b-ae11-e3f1ac833e96","block_type":"box","text":"these securities are new and complex, and trade only among institutions; the markets for these securities are still","page_number":109,"box":{"x":68,"y":105,"width":815,"height":11}},{"id":"90ad3ad0-7c18-422a-b26c-943f98d9e2f7","block_type":"box","text":"developing, and may not function as efficiently as established markets. Typically, investments in private companies","page_number":109,"box":{"x":69,"y":120,"width":821,"height":12}},{"id":"9dc9319c-acc7-488f-8995-8c5641c998c2","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":109,"box":{"x":69,"y":136,"width":831,"height":11}},{"id":"7bcda62c-3ca6-4b75-95bf-95e995a6ee40","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":109,"box":{"x":70,"y":150,"width":824,"height":12}},{"id":"1bd161cf-e79d-49a4-8907-dd20d7e5e011","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":109,"box":{"x":69,"y":166,"width":834,"height":11}},{"id":"7b983655-d2fa-4b2b-a4bd-cca68d0b6432","block_type":"box","text":"a result of the absence of a public trading market and the potential bespoke nature on certain transactions,","page_number":109,"box":{"x":69,"y":181,"width":769,"height":11}},{"id":"a9e67106-793d-4b84-80c6-68701d2bfdb6","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":109,"box":{"x":69,"y":196,"width":838,"height":11}},{"id":"a566a1bb-ec13-48be-8446-55f6c40b537b","block_type":"box","text":"value than publicly traded securities. To the extent that restricted securities may be resold in privately negotiated","page_number":109,"box":{"x":68,"y":211,"width":805,"height":11}},{"id":"3ae74ddb-2bca-4e73-92e7-08e3ab07f6b0","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":109,"box":{"x":68,"y":226,"width":840,"height":11}},{"id":"671b2bdf-4963-48c2-ae86-460478c57b39","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":109,"box":{"x":70,"y":241,"width":815,"height":11}},{"id":"82bb7d26-08a0-4d14-8990-36a458d13569","block_type":"box","text":"character of the issuer, which party (if any) will bear the expenses of registering the restricted security, and prevailing","page_number":109,"box":{"x":69,"y":256,"width":835,"height":12}},{"id":"0eb06602-a3de-4263-85b5-3bc60866cd8d","block_type":"box","text":"market conditions. In addition, issuers whose securities are not publicly traded or who are not otherwise publicly","page_number":109,"box":{"x":69,"y":272,"width":803,"height":11}},{"id":"4cb34d03-0237-4b55-8087-18d3d990c35c","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":109,"box":{"x":70,"y":286,"width":830,"height":12}},{"id":"0751d7d6-b6a4-41d0-9dc6-1bbb5356f3ff","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":109,"box":{"x":69,"y":302,"width":817,"height":11}},{"id":"7b21c00a-db9e-4603-afc3-5dd543442354","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":109,"box":{"x":68,"y":317,"width":825,"height":11}},{"id":"83e23a24-7a10-4f9d-9e4f-a27b99c7fdeb","block_type":"box","text":"of registration. Where registration is required for restricted securities, a considerable time period may elapse","page_number":109,"box":{"x":69,"y":332,"width":777,"height":11}},{"id":"c39f45ec-a3ac-4861-8980-8cdf6ae778a6","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":109,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"73ce8b71-2379-4544-9409-b54b3085385c","block_type":"box","text":"an effective registration statement. If during such period, adverse market conditions were to develop, the Fund might","page_number":109,"box":{"x":69,"y":362,"width":834,"height":11}},{"id":"0cc44e04-4cc7-46e4-a679-06665434fa24","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":109,"box":{"x":69,"y":377,"width":828,"height":12}},{"id":"f7d7d1ea-9da8-4e21-ac9e-d3c3869ec3e0","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":109,"box":{"x":69,"y":392,"width":836,"height":12}},{"id":"eb9a6391-28a5-4232-be4b-2d2a23d42605","block_type":"box","text":"to purchasers of the restricted securities if the registration statement prepared by the issuer, or the corresponding","page_number":109,"box":{"x":68,"y":407,"width":819,"height":12}},{"id":"fded6c01-c11c-430d-9ce2-04196dbfdb38","block_type":"box","text":"prospectus, is materially inaccurate or misleading. Transactions in restricted securities may entail other transaction","page_number":109,"box":{"x":70,"y":423,"width":822,"height":11}},{"id":"eff16757-fd35-416a-a0fd-60b13a593a4c","block_type":"box","text":"costs that are higher than those for transactions in unrestricted securities. Certain of the Fund’s investments in","page_number":109,"box":{"x":69,"y":438,"width":798,"height":11}},{"id":"2cc2a5e6-4010-4340-a0fe-d90aa18c3956","block_type":"box","text":"private placements may consist of direct investments and may include investments in smaller, less seasoned","page_number":109,"box":{"x":70,"y":453,"width":780,"height":11}},{"id":"a652d721-28e6-474a-900b-a20104a5014c","block_type":"box","text":"issuers, which may involve greater risks. Issuers of restricted securities may not be subject to SEC reporting","page_number":109,"box":{"x":70,"y":468,"width":773,"height":11}},{"id":"729352d9-309b-4db2-bc36-de7c4c46db1e","block_type":"box","text":"requirements, may not be required to maintain their accounting records in accordance with generally accepted","page_number":109,"box":{"x":69,"y":483,"width":784,"height":11}},{"id":"fb7e0997-d215-4bc8-95bb-d87e7efbf94d","block_type":"box","text":"accounting principles, and may not be required to maintain effective internal controls over financial reporting. As a","page_number":109,"box":{"x":69,"y":498,"width":816,"height":11}},{"id":"127688da-c3d1-4d06-bd7b-668f1197253b","block_type":"box","text":"result, BlackRock may not have timely or accurate information about the business, financial condition and results of","page_number":109,"box":{"x":69,"y":513,"width":828,"height":11}},{"id":"1efa84c4-2c06-48d8-a3e9-d8f5cc489793","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":109,"box":{"x":69,"y":528,"width":831,"height":12}},{"id":"c4899f59-60e3-4dc7-b59d-1e03ba636c6a","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":109,"box":{"x":68,"y":543,"width":804,"height":12}},{"id":"f6c362a2-cd7c-4180-9d03-5abd577e021e","block_type":"box","text":"markets or financial resources, or they may be dependent on a limited management group.","page_number":109,"box":{"x":69,"y":559,"width":647,"height":11}},{"id":"7e38eb01-cba5-47a9-be37-1f8dfe52cd6d","block_type":"box","text":"Certain restricted securities may represent limited investment opportunities and each shareholder’s","page_number":109,"box":{"x":102,"y":581,"width":714,"height":11}},{"id":"7aefe31c-0a19-495b-b8f8-a23b7de38bf5","block_type":"box","text":"proportionate investment exposure to such limited investment opportunities may be reduced proportionately as the","page_number":109,"box":{"x":70,"y":597,"width":823,"height":11}},{"id":"5950cd29-21d3-4457-90d7-86b27fd36da9","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":109,"box":{"x":70,"y":612,"width":826,"height":11}},{"id":"ffa403ce-a2d6-4d36-99ef-ff24a86004db","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":109,"box":{"x":70,"y":627,"width":830,"height":11}},{"id":"ee0948a7-9637-43d4-b222-8c338636864b","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":109,"box":{"x":69,"y":642,"width":812,"height":11}},{"id":"6a25fe8a-1239-4ebe-8780-40a0220b6b3c","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":109,"box":{"x":69,"y":657,"width":787,"height":11}},{"id":"1332b5c5-cdf2-4755-8894-44a4d1d6c4bf","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":109,"box":{"x":69,"y":672,"width":833,"height":11}},{"id":"96aa354b-f68f-41c9-8c95-d49aefb06a24","block_type":"box","text":"offer other liquidity opportunities to the Fund and other investors will extend the holding period of a Fund’s","page_number":109,"box":{"x":69,"y":687,"width":759,"height":11}},{"id":"32dcb739-7f21-4ab4-80a4-b95091f0d735","block_type":"box","text":"investments, potentially indefinitely, and may adversely affect the value of the investments. In making investments in","page_number":109,"box":{"x":70,"y":702,"width":833,"height":12}},{"id":"99ae5b4c-b7fa-4963-95b9-41af035eef89","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":109,"box":{"x":69,"y":717,"width":828,"height":12}},{"id":"46c73471-4668-4ddb-8c3c-c24c3dfe0350","block_type":"box","text":"conduct portfolio transactions in such securities. The activity of identifying, completing, and realizing upon attractive","page_number":109,"box":{"x":69,"y":732,"width":827,"height":12}},{"id":"a911aaec-03f2-4c31-8941-c7a4a13e7578","block_type":"box","text":"investments in restricted securities is highly competitive and involves a high degree of uncertainty. A Fund will be","page_number":109,"box":{"x":70,"y":748,"width":804,"height":11}},{"id":"da88e4d4-9dad-4ba4-bfdb-2c8d50ecd1df","block_type":"box","text":"competing for investments against other similarly situated investors. It is possible that competition for appropriate","page_number":109,"box":{"x":69,"y":763,"width":816,"height":11}},{"id":"30a169bf-e5c9-4f30-9ecc-189c48083e2f","block_type":"box","text":"investment opportunities may increase, thus potentially reducing the number of investment opportunities available to","page_number":109,"box":{"x":70,"y":778,"width":835,"height":11}},{"id":"a45b38bf-d1bc-4935-8c08-b0ea12539169","block_type":"box","text":"a Fund and adversely affecting the terms upon which investments can be made. There is no assurance that","page_number":109,"box":{"x":69,"y":793,"width":768,"height":11}},{"id":"4e0bb144-8808-4be0-aa72-44a005bcc45d","block_type":"box","text":"investment opportunities for restricted securities will be available at any given time or at a level desired by a Fund,","page_number":109,"box":{"x":70,"y":808,"width":815,"height":11}},{"id":"388fc3b1-c159-4ef8-8203-27d26e3eb777","block_type":"box","text":"especially as that Fund grows in size.","page_number":109,"box":{"x":69,"y":823,"width":264,"height":12}},{"id":"c0edf65a-1728-42a8-b90d-34aada8a77c2","block_type":"box","text":"There may not be a readily available market value for a Fund’s restricted securities (in particular, restricted","page_number":109,"box":{"x":101,"y":846,"width":762,"height":11}},{"id":"e93b5941-b7ea-428e-8b31-f43af1327a7f","block_type":"box","text":"securities issued by private companies) and thus they may be considered “illiquid”. Each Fund values restricted","page_number":109,"box":{"x":69,"y":861,"width":795,"height":11}},{"id":"a6c1627d-52d1-41c8-b127-62fce506f97c","block_type":"box","text":"securities in accordance with BlackRock’s valuation policies and procedures, which are designed to value","page_number":109,"box":{"x":69,"y":876,"width":751,"height":11}},{"id":"8ac4786b-b22c-4497-86f9-6abed6428b1d","block_type":"box","text":"investments such that they accurately reflect fair value. Due to the inherent uncertainty and subjectivity of","page_number":109,"box":{"x":70,"y":891,"width":755,"height":11}},{"id":"23910e18-49aa-4976-8c10-8ef53cefff2e","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":109,"box":{"x":69,"y":906,"width":830,"height":12}},{"id":"fc09bcb7-31d9-4795-a8ed-e8cac9f5b235","block_type":"box","text":"II-71","page_number":109,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"492a3070-6d94-4e8e-9d2f-d3d102c9410b","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":109,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"77a4dc95-ed4a-411f-85fe-e785a6da56f3","block_type":"box","text":"private investments may differ significantly from the values that would have been used had a readily available market","page_number":110,"box":{"x":70,"y":45,"width":835,"height":11}},{"id":"d69e5844-a3b0-4b8c-87a1-bcee1ddcb786","block_type":"box","text":"value existed for such investments and may differ materially from the amounts the Fund may realize on any","page_number":110,"box":{"x":68,"y":60,"width":766,"height":11}},{"id":"f2d40ef1-efa9-45da-8882-4989ec35cfbf","block_type":"box","text":"dispositions of such investments. Differences in the value of the Fund’s private investments could result in the","page_number":110,"box":{"x":69,"y":75,"width":792,"height":11}},{"id":"7c9db65d-a846-4c06-b8a3-330825c68b10","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":110,"box":{"x":70,"y":90,"width":821,"height":11}},{"id":"84dcf16a-3595-4f57-af90-5b5d3bdd3323","block_type":"box","text":"Fund’s portfolio, potentially resulting in the dilution of shareholder interests and increasing opportunities for","page_number":110,"box":{"x":70,"y":105,"width":771,"height":11}},{"id":"819145b3-b5eb-46cb-882b-4b76f4e21c5d","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":110,"box":{"x":69,"y":120,"width":826,"height":12}},{"id":"609891e3-c1f6-4828-90a4-2335c60fd617","block_type":"box","text":"by other investment companies and investors to price the same restricted securities. In addition, the impact of","page_number":110,"box":{"x":69,"y":135,"width":790,"height":11}},{"id":"bd79bb3e-f48f-47a9-88dc-dc498526b030","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":110,"box":{"x":69,"y":150,"width":828,"height":12}},{"id":"fbab0521-ccec-4894-8063-615a1e4ac1e0","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":110,"box":{"x":69,"y":166,"width":810,"height":11}},{"id":"b56e23dc-3def-419a-b62b-84b49ed37443","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":110,"box":{"x":70,"y":181,"width":818,"height":11}},{"id":"56d0b9d9-e092-43e9-b31b-7236a0392e36","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":110,"box":{"x":68,"y":196,"width":839,"height":11}},{"id":"dd9391d4-940c-4f08-b439-325e956219fa","block_type":"box","text":"that the Fund ultimately realizes upon the disposal of such investments.","page_number":110,"box":{"x":68,"y":211,"width":514,"height":11}},{"id":"37eda4c7-9d3a-4ac1-aa21-b68deff1dcc7","block_type":"box","text":"See also risks discussed under “Illiquid Investments.”","page_number":110,"box":{"x":102,"y":234,"width":385,"height":11}},{"id":"66192b51-4f7e-4bf9-b385-94c8dca33200","block_type":"box","text":"Reverse Repurchase Agreements.","page_number":110,"box":{"x":102,"y":257,"width":246,"height":10}},{"id":"b0b7ccfe-7b39-4c64-aeb7-5f870657f10c","block_type":"box","text":"A Fund may enter into reverse repurchase agreements with the same parties","page_number":110,"box":{"x":354,"y":257,"width":548,"height":11}},{"id":"2934dcfe-1f4b-42c7-8638-2bf0d2f59462","block_type":"box","text":"with whom it may enter into repurchase agreements. Under a reverse repurchase agreement, a Fund sells securities","page_number":110,"box":{"x":68,"y":272,"width":830,"height":11}},{"id":"23c9fb64-d7a6-40d5-a165-7f9bbfdfa77d","block_type":"box","text":"to another party and agrees to repurchase them at a particular date and price. A Fund may enter into a reverse","page_number":110,"box":{"x":68,"y":287,"width":793,"height":11}},{"id":"8c215535-35d0-44b3-9318-b33ac5c7d5cd","block_type":"box","text":"repurchase agreement when it is anticipated that the interest income to be earned from the investment of the","page_number":110,"box":{"x":69,"y":302,"width":784,"height":11}},{"id":"ad7bcbe4-0857-4d1b-8133-ac8de103a254","block_type":"box","text":"proceeds of the transaction is greater than the interest expense of the transaction.","page_number":110,"box":{"x":70,"y":317,"width":591,"height":11}},{"id":"897fbf2b-23d5-452e-82d0-de59aad8dff9","block_type":"box","text":"The use of reverse repurchase agreements may be regarded as leveraging and, therefore, speculative.","page_number":110,"box":{"x":101,"y":339,"width":730,"height":12}},{"id":"acab323e-abae-43ee-931a-07d833f7b758","block_type":"box","text":"Furthermore, reverse repurchase agreements involve the risks that (i) the interest income earned in the investment","page_number":110,"box":{"x":70,"y":355,"width":822,"height":11}},{"id":"2d7add18-f573-4e84-9383-58057c478a9c","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":110,"box":{"x":69,"y":370,"width":821,"height":11}},{"id":"114795b8-df7d-48cf-9b3e-e2365959a3e3","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":110,"box":{"x":69,"y":385,"width":801,"height":11}},{"id":"61e6d594-b27e-4c1a-92e7-a8e63661df49","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":110,"box":{"x":69,"y":400,"width":830,"height":11}},{"id":"d4184cef-b2b1-4c57-b984-5f2b18dae6e4","block_type":"box","text":"(iv) the securities will not be returned to the Fund.","page_number":110,"box":{"x":69,"y":415,"width":354,"height":11}},{"id":"0cf498c7-0d88-4a57-a4f5-50433cf46d87","block_type":"box","text":"In addition, if the buyer of securities under a reverse repurchase agreement files for bankruptcy or becomes","page_number":110,"box":{"x":102,"y":438,"width":769,"height":11}},{"id":"acc66a66-eba8-4108-8b48-807eb8287c37","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":110,"box":{"x":70,"y":453,"width":815,"height":11}},{"id":"1acf4cb7-ee7d-411a-901f-1d2a9c6c8823","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":110,"box":{"x":70,"y":468,"width":782,"height":11}},{"id":"20a1f14a-92cc-40c2-8637-41e8fba5b325","block_type":"box","text":"agreement may effectively be restricted pending such decision.","page_number":110,"box":{"x":69,"y":483,"width":449,"height":11}},{"id":"aeba3f54-5d30-4de0-a369-01bb4962886a","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into reverse repurchase agreements and","page_number":110,"box":{"x":102,"y":506,"width":794,"height":11}},{"id":"682cc200-12a6-40a0-9500-a26820b7d3e5","block_type":"box","text":"similar financing transactions (","page_number":110,"box":{"x":69,"y":521,"width":218,"height":11}},{"id":"f73db994-4671-4381-916f-c4db56271e57","block_type":"box","text":"e.g.","page_number":110,"box":{"x":289,"y":522,"width":24,"height":10}},{"id":"9d071c00-395d-477c-86b5-99603e0af619","block_type":"box","text":", recourse and non-recourse tender option bonds, borrowed bonds) notwithstanding","page_number":110,"box":{"x":316,"y":521,"width":594,"height":11}},{"id":"88a9d50b-990b-4114-9942-a1d5fd027775","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":110,"box":{"x":68,"y":536,"width":813,"height":11}},{"id":"a1f417a1-7cc8-48dc-9092-c3613bafde71","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":110,"box":{"x":70,"y":551,"width":789,"height":11}},{"id":"2e8c05b3-4079-41e3-8375-5dcd2795783a","block_type":"box","text":"borrowings in the aggregate, or (ii) treats all such transactions as Derivatives Transactions under Rule 18f-4. See “—","page_number":110,"box":{"x":69,"y":566,"width":836,"height":11}},{"id":"c352fd46-4f87-4b12-9914-4f8d4816196c","block_type":"box","text":"Derivatives — Regulation of Derivatives — Rule 18f-4 under the Investment Company Act” above. The SEC has also","page_number":110,"box":{"x":70,"y":581,"width":824,"height":12}},{"id":"21613cb6-46f4-430c-a4aa-18b21bfe2dfd","block_type":"box","text":"finalized rules that will require certain transactions involving U.S. Treasuries, including reverse repurchase","page_number":110,"box":{"x":68,"y":596,"width":758,"height":12}},{"id":"913bd515-5203-4761-90ca-01186228c82a","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":110,"box":{"x":69,"y":612,"width":822,"height":11}},{"id":"2952ef78-5c97-40ad-9986-a7de42984680","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":110,"box":{"x":68,"y":627,"width":838,"height":11}},{"id":"999ecd5a-af04-4744-956b-bc1c7f67fcbc","block_type":"box","text":"costs of such transactions and may adversely affect a Fund’s performance.","page_number":110,"box":{"x":69,"y":642,"width":538,"height":11}},{"id":"c47b8d43-407f-4a2b-834b-9cb5f4d5ada0","block_type":"box","text":"Additionally, regulations adopted by global prudential regulators require certain bank-regulated counterparties","page_number":110,"box":{"x":101,"y":665,"width":780,"height":11}},{"id":"88f2ff4d-7684-43b5-b223-f6b98f9490a7","block_type":"box","text":"and certain of their affiliates to include in certain financial contracts, including many reverse repurchase agreements,","page_number":110,"box":{"x":69,"y":680,"width":838,"height":11}},{"id":"100a9a17-2749-44af-aaf8-303e050c2726","block_type":"box","text":"terms that delay or restrict the rights of counterparties, such as a Fund, to terminate such agreements, take","page_number":110,"box":{"x":68,"y":695,"width":775,"height":11}},{"id":"519d52a7-a547-4b88-aa28-1bcb9b9febbe","block_type":"box","text":"foreclosure action, exercise other default rights or restrict transfers of credit support in the event that the","page_number":110,"box":{"x":68,"y":710,"width":754,"height":11}},{"id":"e94e0ae7-4669-430b-bc1d-b949d76c6859","block_type":"box","text":"counterparty and/or its affiliates are subject to certain types of resolution or insolvency proceedings. It is possible","page_number":110,"box":{"x":69,"y":725,"width":818,"height":11}},{"id":"7c59419c-99fa-4bc7-a36a-4dbebb3476d1","block_type":"box","text":"that these requirements, as well as potential additional government regulation and other developments in the","page_number":110,"box":{"x":68,"y":740,"width":783,"height":11}},{"id":"737d6523-f700-4078-b20c-e74a2719ae25","block_type":"box","text":"market, could adversely affect a Fund’s ability to terminate existing reverse repurchase agreements or to realize","page_number":110,"box":{"x":69,"y":755,"width":800,"height":11}},{"id":"795b295d-ec4a-4b11-8d53-eb7e070ad4af","block_type":"box","text":"amounts to be received under such agreements.","page_number":110,"box":{"x":69,"y":771,"width":345,"height":11}},{"id":"498c0165-0abb-4f83-a78c-d66aa7a3461d","block_type":"box","text":"Rights Offerings and Warrants to Purchase.","page_number":110,"box":{"x":102,"y":793,"width":316,"height":11}},{"id":"ce79c49e-993e-476a-87a1-3b2802586a7b","block_type":"box","text":"Certain Funds may participate in rights offerings and may purchase","page_number":110,"box":{"x":424,"y":793,"width":481,"height":11}},{"id":"fce44039-efb0-43d3-a79f-a74dd198e108","block_type":"box","text":"warrants, which are privileges issued by corporations enabling the owners to subscribe to and purchase a specified","page_number":110,"box":{"x":68,"y":808,"width":822,"height":11}},{"id":"9424888f-144b-490e-b301-917e415c7147","block_type":"box","text":"number of shares of the corporation at a specified price during a specified period of time. Subscription rights","page_number":110,"box":{"x":69,"y":823,"width":776,"height":12}},{"id":"e65dd05f-a64b-49fc-9977-056550313148","block_type":"box","text":"normally have a short life span to expiration. The purchase of rights or warrants involves the risk that a Fund could","page_number":110,"box":{"x":69,"y":838,"width":817,"height":12}},{"id":"243ccf39-e504-410d-b6e8-60cb4aa98ed0","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":110,"box":{"x":70,"y":853,"width":833,"height":12}},{"id":"b6b92a5c-8bde-447b-8e36-0be69fb97ea6","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":110,"box":{"x":69,"y":869,"width":835,"height":11}},{"id":"2fa017aa-9e79-40df-89fb-882e4bb927a1","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":110,"box":{"x":70,"y":884,"width":821,"height":11}},{"id":"32ea1383-1a32-40d2-bf10-fb6303248072","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":110,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"d3ed26af-7115-4924-9707-1ea92beb8c3c","block_type":"box","text":"II-72","page_number":110,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ef3b1200-49fd-4ad9-ad88-f0ec47646fcb","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":110,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b90d943b-7e6d-4189-a302-088a780c4f24","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":111,"box":{"x":69,"y":45,"width":777,"height":11}},{"id":"5e00d3a2-84ae-47d7-bff9-e6afbe17c677","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":111,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"c2cc76db-53a7-4d16-8cb6-0f6ee9b3fc7c","block_type":"box","text":"this reason investments in warrants may be more speculative than other equity-based investments.","page_number":111,"box":{"x":68,"y":75,"width":708,"height":11}},{"id":"44f1b06e-edf9-4934-b868-2b36ec3c48db","block_type":"box","text":"Rule 144A Securities.","page_number":111,"box":{"x":102,"y":98,"width":159,"height":9}},{"id":"929f98c4-2ce5-45ca-9614-16f9b81470d8","block_type":"box","text":"A Fund may purchase securities that can be offered and sold only to “qualified","page_number":111,"box":{"x":266,"y":98,"width":560,"height":11}},{"id":"e2a55884-390b-4c99-833b-f7662d5a02fc","block_type":"box","text":"institutional buyers” pursuant to Rule 144A under the Securities Act. See “Restricted Securities” above.","page_number":111,"box":{"x":70,"y":113,"width":741,"height":11}},{"id":"a50a3dfb-2d27-4ed8-9a2c-60604ec9e79f","block_type":"box","text":"Securities Lending.","page_number":111,"box":{"x":101,"y":135,"width":139,"height":11}},{"id":"8b236d5f-2cda-4b17-a0ae-81d3099bed2e","block_type":"box","text":"Each Fund may lend portfolio securities to certain borrowers that BlackRock determines to","page_number":111,"box":{"x":247,"y":135,"width":645,"height":11}},{"id":"90f97c88-f486-466f-906a-8dfa365984fa","block_type":"box","text":"be creditworthy, including borrowers affiliated with BlackRock. The borrowers provide collateral that is maintained in","page_number":111,"box":{"x":69,"y":150,"width":825,"height":12}},{"id":"910f8e26-4f67-47d6-856c-7375aafbcb9d","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":111,"box":{"x":69,"y":166,"width":817,"height":11}},{"id":"5a9f960d-877c-44a2-ab84-877d8aa02f49","block_type":"box","text":"behalf of a Fund if, as a result, the aggregate value of all securities loans of the particular Fund exceeds one-third of","page_number":111,"box":{"x":69,"y":181,"width":831,"height":11}},{"id":"33aa1866-0a7b-4958-8798-baedc91f911d","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":111,"box":{"x":68,"y":196,"width":827,"height":11}},{"id":"1ab2a571-b862-451b-a14e-06fbdd06e952","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":111,"box":{"x":69,"y":211,"width":829,"height":11}},{"id":"eced283d-4a9a-4f83-aa90-e2f216118075","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":111,"box":{"x":69,"y":226,"width":838,"height":11}},{"id":"8117d4cc-0fc9-41e8-ac92-c753bbbd83da","block_type":"box","text":"the securities were not on loan.","page_number":111,"box":{"x":68,"y":241,"width":225,"height":9}},{"id":"5e2aa6e4-5a50-4919-823d-66a9ac7f4a88","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":111,"box":{"x":101,"y":264,"width":799,"height":11}},{"id":"3a9b5f1d-3396-42d7-8a3b-32acf44ec78b","block_type":"box","text":"amount of cash collateral. The Funds are compensated by any positive difference between the amount earned on the","page_number":111,"box":{"x":69,"y":279,"width":835,"height":11}},{"id":"20bc8a20-68b4-4aeb-850d-c5a4113c0f47","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":111,"box":{"x":69,"y":294,"width":824,"height":11}},{"id":"97396aa9-bf46-4b8f-bb64-4c73b38684da","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":111,"box":{"x":69,"y":309,"width":821,"height":11}},{"id":"d169878d-d10d-40c7-a859-c98d712b9be1","block_type":"box","text":"cash collateral received by the Fund for such loans, and uninvested cash, may be reinvested in certain short-term","page_number":111,"box":{"x":69,"y":324,"width":810,"height":11}},{"id":"773ad885-d8ed-468c-8f1f-6530ee8f96a0","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":111,"box":{"x":70,"y":339,"width":789,"height":12}},{"id":"672666fa-81f9-4355-9def-bcae734998a4","block_type":"box","text":"including those affiliated with BlackRock; such investments are subject to investment risk.","page_number":111,"box":{"x":70,"y":355,"width":643,"height":11}},{"id":"089681bb-599b-4837-9aef-e091e8b3a371","block_type":"box","text":"Securities lending involves exposure to certain risks, including operational risk (","page_number":111,"box":{"x":102,"y":377,"width":568,"height":12}},{"id":"ba1f5a40-845f-45c7-a860-dc1de88a63b3","block_type":"box","text":"i.e.","page_number":111,"box":{"x":672,"y":377,"width":20,"height":9}},{"id":"8a6e5a81-7dc2-4483-8ca4-53fad9613cd1","block_type":"box","text":", the risk of losses resulting","page_number":111,"box":{"x":695,"y":377,"width":198,"height":12}},{"id":"44fdc7b6-8d78-46eb-9504-25b483d36bc7","block_type":"box","text":"from problems in the settlement and accounting process), “gap” risk (","page_number":111,"box":{"x":68,"y":392,"width":501,"height":12}},{"id":"7753518e-7706-4d2c-8cf8-da6991064ebb","block_type":"box","text":"i.e.","page_number":111,"box":{"x":571,"y":393,"width":20,"height":8}},{"id":"f513dbbe-7b65-4d76-98b0-9af4e43f30b2","block_type":"box","text":", the risk of a mismatch between the return","page_number":111,"box":{"x":594,"y":392,"width":307,"height":11}},{"id":"761edd08-5181-4f09-ab1b-61660d5f3142","block_type":"box","text":"on cash collateral reinvestments and the fees each Fund has agreed to pay a borrower), foreign exchange risk (","page_number":111,"box":{"x":69,"y":407,"width":794,"height":12}},{"id":"4cf65b52-5ade-4881-8c2e-80c1276e05b5","block_type":"box","text":"i.e.","page_number":111,"box":{"x":865,"y":408,"width":20,"height":8}},{"id":"9b10f1cc-83b4-494b-bb03-3ab228ce9dd3","block_type":"box","text":",","page_number":111,"box":{"x":888,"y":415,"width":2,"height":3}},{"id":"3486ce0c-b529-43a1-8884-5ae30c9bf239","block_type":"box","text":"the risk of a shortfall at default when a cash collateral investment is denominated in a currency other than the","page_number":111,"box":{"x":68,"y":423,"width":788,"height":11}},{"id":"eeff53e3-03d5-4011-8414-51dbdcde0917","block_type":"box","text":"currency of the assets being loaned due to movements in foreign exchange rates), and credit, legal, counterparty and","page_number":111,"box":{"x":69,"y":438,"width":837,"height":11}},{"id":"3c10ebae-9f4d-45ed-825b-8e4d0f3f0445","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":111,"box":{"x":69,"y":453,"width":822,"height":11}},{"id":"69db5353-6f41-4d53-adb8-eaf35f306966","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":111,"box":{"x":68,"y":468,"width":811,"height":11}},{"id":"c3ff8a2b-8386-4502-a1d2-7cb656ad60a8","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":111,"box":{"x":70,"y":483,"width":820,"height":11}},{"id":"2aeec401-3d38-4ba9-95a1-e3ce9b357636","block_type":"box","text":"are subject to a corporate action and commit to the borrower a particular election as determined by the Fund’s","page_number":111,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"574b50c4-1c5f-40ad-9981-2cca5f3a790b","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":111,"box":{"x":70,"y":513,"width":820,"height":12}},{"id":"47c7a738-17bc-4279-bb5b-ccf425273255","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":111,"box":{"x":70,"y":528,"width":805,"height":12}},{"id":"9aa5f2bf-301f-4c0a-9a76-590fdd10a0cf","block_type":"box","text":"securities lending counterparty were to default, a Fund would be subject to the risk of a possible delay in receiving","page_number":111,"box":{"x":69,"y":543,"width":816,"height":12}},{"id":"3b82420c-1be8-42f4-8f4f-396c168360dd","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":111,"box":{"x":69,"y":559,"width":775,"height":11}},{"id":"093b74bd-a070-411b-bdd2-21c4c7c70768","block_type":"box","text":"borrower does not return a Fund’s securities as agreed, the Fund’s ability to participate in a corporate action event","page_number":111,"box":{"x":69,"y":574,"width":821,"height":11}},{"id":"3d60048f-5763-43d9-b74a-19e81bbce78e","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":111,"box":{"x":69,"y":589,"width":838,"height":11}},{"id":"698930a0-e95e-4bae-a040-49d8be411fec","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":111,"box":{"x":70,"y":604,"width":837,"height":11}},{"id":"c5874048-d9c1-4810-bf15-b8fcdddbdb0e","block_type":"box","text":"in purchasing replacement securities. This latter event could trigger adverse tax consequences for a Fund. A Fund","page_number":111,"box":{"x":70,"y":619,"width":808,"height":11}},{"id":"d9c4f615-5f87-4639-bf11-e433a93f2ec6","block_type":"box","text":"could lose money if its short-term investment of the collateral declines in value over the period of the loan. Substitute","page_number":111,"box":{"x":69,"y":634,"width":839,"height":11}},{"id":"9170b1c6-7288-4952-8fb5-5c0ea5218a76","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":111,"box":{"x":70,"y":650,"width":832,"height":11}},{"id":"467eeacf-3661-4d43-b97c-a131bc8be491","block_type":"box","text":"qualified dividend income, and distributions by the Fund of such substitute payments will not constitute qualified","page_number":111,"box":{"x":69,"y":664,"width":801,"height":12}},{"id":"cfd0d562-3e1a-4d8d-9ed8-be92c24a2d73","block_type":"box","text":"dividend income. Additionally, substitute payments received by a Fund representing qualified REIT dividends paid on","page_number":111,"box":{"x":69,"y":680,"width":823,"height":11}},{"id":"6b24f4a1-d2b8-4928-8580-49241d3e288b","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":111,"box":{"x":70,"y":695,"width":823,"height":11}},{"id":"a24af0dc-6035-4b8a-a001-3fd5f99cc054","block_type":"box","text":"of such substitute payments will not be eligible for a 20% deduction currently available for ordinary REIT dividends","page_number":111,"box":{"x":69,"y":710,"width":812,"height":11}},{"id":"3281303d-9504-486e-8dc2-6f73e042e04d","block_type":"box","text":"paid to non-corporate shareholders provided certain other requirements are satisfied. The securities lending agent","page_number":111,"box":{"x":70,"y":725,"width":814,"height":11}},{"id":"0caecc8a-21e3-44ca-8de0-0f7f2a18cd4c","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":111,"box":{"x":68,"y":740,"width":787,"height":11}},{"id":"13ee321c-5cf8-4808-85aa-270c9cd43a79","block_type":"box","text":"securities lending program. Substitute payments received on tax-exempt securities loaned out will not be tax-exempt","page_number":111,"box":{"x":69,"y":755,"width":828,"height":11}},{"id":"7d6dfeb4-3e9d-49e0-b4b0-6ca422d234d9","block_type":"box","text":"income. There could also be changes in the status of issuers under applicable laws and regulations, including tax","page_number":111,"box":{"x":70,"y":770,"width":809,"height":12}},{"id":"98b6440a-6742-467e-8a57-10ddbd69d70a","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":111,"box":{"x":69,"y":785,"width":821,"height":12}},{"id":"7f1276d5-f3d2-416e-93c5-daf892d0034b","block_type":"box","text":"delay in the payment of dividend equivalent payments owed to a Fund (as permitted by applicable law).","page_number":111,"box":{"x":69,"y":801,"width":731,"height":11}},{"id":"bea6fa3b-07a9-4cf6-b845-710223423503","block_type":"box","text":"Regulations adopted by global prudential regulators require certain bank-regulated counterparties and certain of","page_number":111,"box":{"x":102,"y":823,"width":800,"height":12}},{"id":"06e3e79d-6c31-42d2-9e64-da49f6e7f32e","block_type":"box","text":"their affiliates to include in certain financial contracts, including many securities lending agreements, terms that","page_number":111,"box":{"x":68,"y":838,"width":802,"height":12}},{"id":"99107989-c8d7-4b92-abb1-9e12a8fa5cd8","block_type":"box","text":"delay or restrict the rights of counterparties, such as the Fund, to terminate such agreements, foreclose upon","page_number":111,"box":{"x":69,"y":853,"width":783,"height":12}},{"id":"017a8783-0335-43f6-ae7a-4783009a306e","block_type":"box","text":"collateral, exercise other default rights or restrict transfers of credit support in the event that the counterparty and/or","page_number":111,"box":{"x":69,"y":869,"width":839,"height":11}},{"id":"a295f23d-f945-49b3-8552-a82771597d1e","block_type":"box","text":"its affiliates are subject to certain types of resolution or insolvency proceedings. It is possible that these","page_number":111,"box":{"x":70,"y":884,"width":747,"height":11}},{"id":"f13a7361-0445-4e4a-a4c5-301a436621e2","block_type":"box","text":"requirements, as well as potential additional government regulation and other developments in the market, could","page_number":111,"box":{"x":69,"y":899,"width":806,"height":11}},{"id":"b397001f-0208-4864-b2ae-ef566219e3bd","block_type":"box","text":"II-73","page_number":111,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6bea7b4b-c36c-41ed-811b-db0a916a8ef2","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":111,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6c23779a-2e2c-4cef-9268-3409ee2e7c7c","block_type":"box","text":"adversely affect the Fund’s ability to terminate existing securities lending agreements or to realize amounts to be","page_number":112,"box":{"x":69,"y":45,"width":808,"height":11}},{"id":"35216197-8a4b-42a7-b7eb-eae1c5bb527b","block_type":"box","text":"received under such agreements. Prudential regulation may also favor lenders that can provide additional protections,","page_number":112,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"77e89302-796e-4455-8349-02704e24f1f8","block_type":"box","text":"such as liens that are exercisable in connection with a lender default, to borrowers. Certain Funds expect to provide","page_number":112,"box":{"x":69,"y":75,"width":827,"height":11}},{"id":"87dd5ccf-0f27-4da6-a9f4-7a4b4659c322","block_type":"box","text":"additional protections to borrowers, where permitted pursuant to a Fund’s investment policies and if BlackRock","page_number":112,"box":{"x":69,"y":90,"width":794,"height":11}},{"id":"bde6721a-3512-4620-901b-b6f2f8bccb60","block_type":"box","text":"believes doing so is in the best interest of the Fund.","page_number":112,"box":{"x":69,"y":105,"width":371,"height":11}},{"id":"eff8bf00-36ac-4292-bb82-3399c56b1da7","block_type":"box","text":"The SEC has adopted a rule that will require reporting and public disclosure of securities loan transaction","page_number":112,"box":{"x":101,"y":128,"width":753,"height":11}},{"id":"3fad8bbc-ca12-4daa-8cf5-1e4d7340d7a2","block_type":"box","text":"information (not including party names); this may include, but is not limited to, information about securities loans","page_number":112,"box":{"x":70,"y":143,"width":808,"height":11}},{"id":"46df8a7d-290f-4b7b-8dc9-b1d48c609235","block_type":"box","text":"entered into in connection with short sales. Compliance with this rule is expected to be required in late 2028,","page_number":112,"box":{"x":69,"y":158,"width":784,"height":11}},{"id":"2fb9dd9d-41ee-4257-becf-b28af003e6ff","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":112,"box":{"x":69,"y":173,"width":833,"height":11}},{"id":"ff203776-f5e9-4efc-a44e-71aae5bbc46b","block_type":"box","text":"the current expected compliance date.","page_number":112,"box":{"x":68,"y":188,"width":273,"height":11}},{"id":"680b6c06-ce29-48df-9c78-4222559a3ba7","block_type":"box","text":"Short Sales.","page_number":112,"box":{"x":101,"y":211,"width":89,"height":9}},{"id":"ee58988a-e3a3-4c5c-b3f2-a075a1c67945","block_type":"box","text":"Certain Funds may make short sales of securities, either as a hedge against potential declines in","page_number":112,"box":{"x":196,"y":211,"width":696,"height":11}},{"id":"b3c813ed-0db0-4075-aa1b-f9852ded14b1","block_type":"box","text":"value of a portfolio security or to realize appreciation when a security that the Fund does not own declines in value.","page_number":112,"box":{"x":68,"y":226,"width":821,"height":11}},{"id":"e9a2e295-f30b-45af-8bcf-6acb610988a2","block_type":"box","text":"Certain Funds have a fundamental investment restriction prohibiting short sales of securities unless they are","page_number":112,"box":{"x":69,"y":241,"width":778,"height":11}},{"id":"40e416cf-40a4-488e-8812-1099d3188eac","block_type":"box","text":"“against-the-box.” In a short sale “against-the-box,” at the time of the sale, the Fund owns or has the immediate and","page_number":112,"box":{"x":70,"y":256,"width":831,"height":12}},{"id":"dd862dfd-4b63-405c-9ff8-9a8e0f715f7b","block_type":"box","text":"unconditional right to acquire the identical security at no additional cost. When a Fund makes a short sale, it borrows","page_number":112,"box":{"x":69,"y":272,"width":837,"height":11}},{"id":"5f1fad75-2db6-421a-ae92-6eeb460592ca","block_type":"box","text":"the security sold short and delivers it to the broker-dealer through which it made the short sale. A Fund may have to","page_number":112,"box":{"x":68,"y":287,"width":828,"height":11}},{"id":"df57df57-841d-4067-b83a-c2c2bb38fdfd","block_type":"box","text":"pay a fee to borrow particular securities and is often obligated to turn over any payments received on such borrowed","page_number":112,"box":{"x":70,"y":302,"width":829,"height":11}},{"id":"9c65caba-4058-4ef0-914a-b39fd463ab46","block_type":"box","text":"securities to the lender of the securities.","page_number":112,"box":{"x":69,"y":317,"width":289,"height":9}},{"id":"81888c20-142e-4316-b1d8-6468bfd94555","block_type":"box","text":"A Fund secures its obligation to replace the borrowed security by depositing collateral with the broker-dealer,","page_number":112,"box":{"x":101,"y":340,"width":772,"height":11}},{"id":"e2e784f7-2165-4703-8e00-6b4595fdec6d","block_type":"box","text":"usually in cash, U.S. Government Securities or other liquid securities similar to those borrowed. With respect to","page_number":112,"box":{"x":69,"y":355,"width":795,"height":11}},{"id":"d559eca1-9a6b-4e29-a0e5-58da2b880e15","block_type":"box","text":"uncovered short positions, a Fund is required to deposit similar collateral with its custodian, if necessary, to the","page_number":112,"box":{"x":69,"y":370,"width":801,"height":11}},{"id":"62eea87a-e382-424e-ba7b-6416d3b58534","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":112,"box":{"x":69,"y":385,"width":830,"height":11}},{"id":"ca5a9d83-715b-4472-9e3c-2f1a906b78a7","block_type":"box","text":"market value of the security sold short. Depending on arrangements made with the broker-dealer from which the Fund","page_number":112,"box":{"x":69,"y":400,"width":839,"height":11}},{"id":"faab9c83-c67f-4bc0-8c58-fe34a59424a7","block_type":"box","text":"borrowed the security, regarding payment received by the Fund on such security, a Fund may not receive any","page_number":112,"box":{"x":69,"y":415,"width":770,"height":11}},{"id":"5ecdb7d8-3ffc-4b97-a530-517b3998cdb8","block_type":"box","text":"payments (including interest) on its collateral deposited with such broker-dealer.","page_number":112,"box":{"x":70,"y":430,"width":568,"height":11}},{"id":"4c21bb55-3c84-41d2-a4da-8a0731ed742e","block_type":"box","text":"Because making short sales in securities that it does not own exposes a Fund to the risks associated with those","page_number":112,"box":{"x":102,"y":453,"width":806,"height":11}},{"id":"b291dceb-4d8a-4843-a592-fabc7acab36e","block_type":"box","text":"securities, such short sales involve speculative exposure risk. A Fund will incur a loss as a result of a short sale if","page_number":112,"box":{"x":69,"y":468,"width":817,"height":11}},{"id":"05af1458-e80c-4e63-b355-4f45fcb02f4c","block_type":"box","text":"the price of the security increases between the date of the short sale and the date on which the Fund replaces the","page_number":112,"box":{"x":68,"y":483,"width":819,"height":11}},{"id":"0e3653be-76e1-4578-8982-cc9426a3136e","block_type":"box","text":"borrowed security. As a result, if a Fund makes short sales in securities that increase in value, it will likely","page_number":112,"box":{"x":69,"y":498,"width":758,"height":11}},{"id":"15eb3a02-0189-44cf-883a-d1fafecce4aa","block_type":"box","text":"underperform similar mutual funds that do not make short sales in securities. A Fund will realize a gain on a short","page_number":112,"box":{"x":69,"y":513,"width":817,"height":12}},{"id":"e814d2fd-bb6b-4f68-bc20-1185faef0565","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":112,"box":{"x":69,"y":528,"width":800,"height":12}},{"id":"ff3ddc73-1d30-4360-9777-42e9bc04e407","block_type":"box","text":"close out a short sale position at any particular time or at an acceptable price. Although a Fund’s gain is limited to","page_number":112,"box":{"x":69,"y":544,"width":818,"height":11}},{"id":"81c71291-07ae-474c-8b05-fd8226aa9b49","block_type":"box","text":"the price at which it sold the security short, its potential loss is limited only by the maximum attainable price of the","page_number":112,"box":{"x":68,"y":559,"width":821,"height":11}},{"id":"3e6a88af-8b97-425d-bb32-892fe08da699","block_type":"box","text":"security, less the price at which the security was sold and may, theoretically, be unlimited.","page_number":112,"box":{"x":69,"y":574,"width":640,"height":11}},{"id":"820b3258-a333-4ee0-8cb4-56179257569a","block_type":"box","text":"A Fund may also make short sales “against the box” without being subject to such limitations.","page_number":112,"box":{"x":101,"y":597,"width":673,"height":11}},{"id":"79d3fb11-9949-4da8-8123-e80303003cc3","block_type":"box","text":"A Fund must comply with Rule 18f-4 under the Investment Company Act with respect to its short sale","page_number":112,"box":{"x":101,"y":619,"width":721,"height":11}},{"id":"c7b37f4b-7842-4f79-85ad-751c1c662617","block_type":"box","text":"borrowings, which are considered Derivatives Transactions under the Rule. See “—Derivatives — Regulation of","page_number":112,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"1565cd13-e794-4949-b6c6-ee67e6945502","block_type":"box","text":"Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":112,"box":{"x":70,"y":649,"width":489,"height":12}},{"id":"643dbf3a-6013-4b3e-86de-3084cc5b02de","block_type":"box","text":"Short sales are also subject to certain SEC regulations and certain European Union and United Kingdom","page_number":112,"box":{"x":102,"y":672,"width":745,"height":11}},{"id":"dbc52e87-2167-43d7-af16-baf2c82a35aa","block_type":"box","text":"regulations (under which there are restrictions on net short sales in certain securities). If the SEC or regulatory","page_number":112,"box":{"x":69,"y":687,"width":793,"height":11}},{"id":"7283364c-6f59-48c4-991d-1218d5ec672e","block_type":"box","text":"authorities in other jurisdictions were to adopt additional restrictions regarding short sales, they could restrict a","page_number":112,"box":{"x":69,"y":703,"width":796,"height":11}},{"id":"f3139f9c-ddc0-49a1-8e12-b10a63257f73","block_type":"box","text":"Fund’s ability to engage in short sales in certain circumstances, and the Fund may be unable to execute its","page_number":112,"box":{"x":70,"y":718,"width":766,"height":11}},{"id":"05dd24ff-bee6-4aec-a909-3f301969004e","block_type":"box","text":"investment strategy as a result. In response to market events, the SEC and regulatory authorities in other","page_number":112,"box":{"x":70,"y":733,"width":754,"height":11}},{"id":"bb643350-8b30-451f-ad7b-3ff83e95feed","block_type":"box","text":"jurisdictions may adopt (and in certain cases, have adopted) bans or other restrictions on short sales of certain","page_number":112,"box":{"x":67,"y":748,"width":800,"height":11}},{"id":"dd423649-94b3-4b47-ac5e-b45de7a1f5bf","block_type":"box","text":"securities or on derivatives and other hedging instruments used to achieve a similar economic effect. Such bans or","page_number":112,"box":{"x":69,"y":763,"width":823,"height":11}},{"id":"5a3fd69c-f149-4ab6-8922-aa4980f4cac8","block_type":"box","text":"other restrictions may make it impossible for a Fund to execute certain investment strategies and may have a","page_number":112,"box":{"x":69,"y":778,"width":782,"height":11}},{"id":"7bf2c7e6-b66e-492f-a123-6ffd8497d769","block_type":"box","text":"material adverse effect on the Fund’s ability to generate returns.","page_number":112,"box":{"x":69,"y":793,"width":460,"height":11}},{"id":"115d0eb1-fd00-43c8-82f5-bb4ffbb7668b","block_type":"box","text":"Special Purpose Acquisition Companies.","page_number":112,"box":{"x":101,"y":816,"width":293,"height":11}},{"id":"1e72e71b-8dfa-409a-a161-852a08030ad6","block_type":"box","text":"A Fund may invest in stock, warrants, rights and other interests issued","page_number":112,"box":{"x":400,"y":816,"width":504,"height":11}},{"id":"dfda4197-2cb0-4e4b-9de5-d5aa3482c642","block_type":"box","text":"by special purpose acquisition companies (“SPACs”) or similar special purpose entities that pool funds to seek","page_number":112,"box":{"x":69,"y":831,"width":791,"height":11}},{"id":"6f6afaa9-d8eb-4abe-9fc2-b5aa53aaec79","block_type":"box","text":"potential acquisition opportunities, including the “founder’s” shares and warrants described below. A SPAC is a","page_number":112,"box":{"x":70,"y":846,"width":793,"height":11}},{"id":"7ad3eecc-631a-4f15-85ea-56535d1dc352","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":112,"box":{"x":70,"y":861,"width":824,"height":11}},{"id":"4b2cbade-72e4-4663-ab07-7bbaa1045562","block_type":"box","text":"more operating businesses or assets. In connection with forming a SPAC, the SPAC’s sponsors acquire “founder’s”","page_number":112,"box":{"x":69,"y":876,"width":821,"height":11}},{"id":"8b819418-06ec-44ff-aaeb-7a3b6dd89dfc","block_type":"box","text":"shares, generally for nominal consideration, and warrants that will result in the sponsors owning a specified","page_number":112,"box":{"x":69,"y":891,"width":768,"height":12}},{"id":"0343b182-7226-469f-b117-0c7056bf6cf9","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":112,"box":{"x":70,"y":906,"width":826,"height":12}},{"id":"cf49c53f-c64e-438e-b5bc-f6dc3a583244","block_type":"box","text":"II-74","page_number":112,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"25550c12-8ffa-4846-a2ca-5d4fa2d2164c","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":112,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"10657a56-256c-42be-b3ee-372ae857478c","block_type":"box","text":"conducts an IPO, it has selected a management team but has not yet identified a specific acquisition opportunity.","page_number":113,"box":{"x":69,"y":45,"width":809,"height":11}},{"id":"30f6fd21-7d21-4b7f-a751-53f065186706","block_type":"box","text":"Unless and until an acquisition is completed, a SPAC generally invests its assets in U.S. Government securities,","page_number":113,"box":{"x":70,"y":60,"width":797,"height":11}},{"id":"18eb9071-9b32-4bc6-a7a8-49b9b29ad69b","block_type":"box","text":"money market securities and cash. If an acquisition that meets the requirements for the SPAC is not completed","page_number":113,"box":{"x":69,"y":75,"width":795,"height":11}},{"id":"1c19af38-6600-41bb-9a8e-ca37b8e40bd0","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":113,"box":{"x":68,"y":90,"width":788,"height":11}},{"id":"aa5834dc-d50e-4f3c-9342-7964955025f2","block_type":"box","text":"warrants expire, and the “founder’s” shares and such warrants become worthless. Because SPACs and similar","page_number":113,"box":{"x":68,"y":105,"width":794,"height":11}},{"id":"02f8e3d5-f3de-4490-98e4-339aaccc8a53","block_type":"box","text":"entities are in essence “blank check” companies without operating histories or ongoing business operations (other","page_number":113,"box":{"x":69,"y":120,"width":820,"height":12}},{"id":"80f8de1d-519b-4c4f-bba5-0322bd978ed1","block_type":"box","text":"than identifying and pursuing acquisitions), the potential for the long-term capital appreciation of their securities is","page_number":113,"box":{"x":68,"y":135,"width":815,"height":12}},{"id":"bab42b91-30fd-44b9-adb8-88725697ef17","block_type":"box","text":"particularly dependent on the ability of the SPAC’s management to identify and complete a profitable acquisition.","page_number":113,"box":{"x":70,"y":150,"width":802,"height":12}},{"id":"03529ca2-aad3-4969-af0c-8e9de59ace8e","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":113,"box":{"x":68,"y":166,"width":812,"height":11}},{"id":"c63b9fcc-6a20-40f7-9cda-e4a18211e575","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":113,"box":{"x":69,"y":181,"width":838,"height":11}},{"id":"fa04b4b6-90ea-4ea5-ac8a-3420d6609cc3","block_type":"box","text":"certain industries or regions, which may ultimately lead to an increase in the volatility of their prices following the","page_number":113,"box":{"x":69,"y":196,"width":806,"height":11}},{"id":"b7ad134f-22da-4b91-b200-57bcd6f67935","block_type":"box","text":"acquisition. In addition, some of these securities may be considered illiquid and/or subject to restrictions on resale.","page_number":113,"box":{"x":69,"y":211,"width":828,"height":11}},{"id":"6331cdfc-fcfc-418d-a173-94c1764a53c8","block_type":"box","text":"Standby Commitment Agreements.","page_number":113,"box":{"x":101,"y":234,"width":255,"height":11}},{"id":"28ae3478-8a9b-4861-86d1-330a27ca8101","block_type":"box","text":"Standby commitment agreements commit a Fund, for a stated period of","page_number":113,"box":{"x":362,"y":234,"width":511,"height":11}},{"id":"f55e0a0a-c118-437e-968c-5ff813925542","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":113,"box":{"x":68,"y":249,"width":834,"height":11}},{"id":"58ef0467-01e8-4182-98f9-9775cfef18a1","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":113,"box":{"x":68,"y":264,"width":834,"height":11}},{"id":"a2bbe985-d04c-4aaf-9a0f-1f6b4d03dca8","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":113,"box":{"x":70,"y":279,"width":802,"height":11}},{"id":"aeeb2bdf-c8c1-4e44-8469-445372ad81dc","block_type":"box","text":"agreements for the purpose of investing in the security underlying the commitment at a price that is considered","page_number":113,"box":{"x":69,"y":294,"width":793,"height":11}},{"id":"4eda9e44-4054-4fda-a515-91bddd4227d5","block_type":"box","text":"advantageous to the Fund.","page_number":113,"box":{"x":69,"y":309,"width":188,"height":11}},{"id":"ab0ebd47-def1-4431-947e-42ed2b0e4348","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":113,"box":{"x":101,"y":332,"width":800,"height":11}},{"id":"b2b45d4c-3a18-4810-b1cb-0b5496c640a2","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":113,"box":{"x":68,"y":347,"width":816,"height":11}},{"id":"b7dc9541-32e0-4a0f-9983-8a0be2dc1f1e","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":113,"box":{"x":69,"y":362,"width":835,"height":11}},{"id":"ef03d9c3-93a5-4dac-be4a-a0eff36dcdf7","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":113,"box":{"x":69,"y":377,"width":828,"height":12}},{"id":"20f7cbd7-d7f8-4bc4-87bb-45d4f9b7ba85","block_type":"box","text":"The purchase of a security pursuant to a standby commitment agreement and the related commitment fee will","page_number":113,"box":{"x":101,"y":400,"width":785,"height":11}},{"id":"d32e5db6-1e21-492c-9f21-844ce8f44365","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":113,"box":{"x":69,"y":415,"width":837,"height":11}},{"id":"2e38ea61-e8e6-4ab4-a170-f708a30e8847","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":113,"box":{"x":68,"y":430,"width":815,"height":11}},{"id":"e0a17040-5f2a-4aeb-9c1d-adf9c93dd641","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":113,"box":{"x":69,"y":445,"width":792,"height":11}},{"id":"0e9b13f3-92f1-437c-be1f-338de748d380","block_type":"box","text":"income on the expiration date of the standby commitment.","page_number":113,"box":{"x":70,"y":460,"width":415,"height":12}},{"id":"1422cd76-e3ac-4b98-b756-ad384826e183","block_type":"box","text":"Standby commitments will only be entered into with dealers, banks and broker-dealers which, in the Manager’s","page_number":113,"box":{"x":102,"y":483,"width":789,"height":11}},{"id":"8c342622-0c9b-4e09-9b95-99c4d2244685","block_type":"box","text":"or sub-adviser’s opinion, present minimal credit risks. A Fund will acquire standby commitments solely to facilitate","page_number":113,"box":{"x":69,"y":498,"width":814,"height":11}},{"id":"9aba84d9-251c-46cd-94d1-5580e4e60e9a","block_type":"box","text":"portfolio liquidity and not to exercise its rights thereunder for trading purposes. Standby commitments will be valued","page_number":113,"box":{"x":70,"y":513,"width":827,"height":12}},{"id":"13fa79dd-95b9-4750-a9d2-ab379c98c4fc","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":113,"box":{"x":69,"y":528,"width":815,"height":12}},{"id":"2e2e7f3d-bfb8-4b8e-b792-6cbede94611b","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":113,"box":{"x":68,"y":543,"width":817,"height":12}},{"id":"86e48104-d7a6-4d84-9d52-c205ec573551","block_type":"box","text":"reflected as a realized gain or loss when the commitment is exercised or expires.","page_number":113,"box":{"x":69,"y":559,"width":578,"height":11}},{"id":"018abec5-9097-42ac-a93b-1a6508be2fbc","block_type":"box","text":"Stripped Securities.","page_number":113,"box":{"x":101,"y":581,"width":143,"height":11}},{"id":"fe2582f3-4489-4952-a4d4-00cc644107d2","block_type":"box","text":"Stripped securities are created when the issuer separates the interest and principal","page_number":113,"box":{"x":251,"y":581,"width":596,"height":11}},{"id":"3148729d-bc48-4d04-9486-2bfb187fdc6b","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":113,"box":{"x":69,"y":596,"width":839,"height":12}},{"id":"185635bd-c1ab-4534-8616-b93ba7a207ac","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":113,"box":{"x":70,"y":612,"width":818,"height":11}},{"id":"7851605b-6a1d-4713-bfbb-31ad322ff90f","block_type":"box","text":"payments (the principal only or “PO” security). Some stripped securities may receive a combination of interest and","page_number":113,"box":{"x":70,"y":627,"width":813,"height":11}},{"id":"0f0f8c90-3a1c-4088-8fba-552c27fc1690","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":113,"box":{"x":70,"y":642,"width":777,"height":11}},{"id":"2eb8abdf-9212-4d68-9933-d5de29d93ac3","block_type":"box","text":"principal payments (including prepayments) on the related underlying assets, and principal payments may have a","page_number":113,"box":{"x":70,"y":657,"width":802,"height":11}},{"id":"ea4ce26f-1da3-458c-874c-0bb0746e30ba","block_type":"box","text":"material effect on yield to maturity. If the underlying assets experience greater than anticipated prepayments of","page_number":113,"box":{"x":69,"y":672,"width":794,"height":11}},{"id":"e940eabf-ae10-4903-976a-7080fa1ec0aa","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":113,"box":{"x":70,"y":687,"width":837,"height":11}},{"id":"c49e3494-1024-4359-a332-270edf0d59a3","block_type":"box","text":"than anticipated prepayments of principal, the yield on POs could be adversely affected. Stripped securities may be","page_number":113,"box":{"x":68,"y":702,"width":823,"height":11}},{"id":"d044563c-0ae0-431f-aa02-6d6980d2edfa","block_type":"box","text":"highly sensitive to changes in interest rates and rates of prepayment.","page_number":113,"box":{"x":69,"y":717,"width":494,"height":12}},{"id":"3090aa6c-87ca-43d5-985d-4a51f74d9fe4","block_type":"box","text":"Structured Notes.","page_number":113,"box":{"x":101,"y":740,"width":130,"height":9}},{"id":"c2feb8d0-f671-490f-9c63-0e6eaf5a9224","block_type":"box","text":"Structured notes and other related instruments purchased by a Fund are generally privately","page_number":113,"box":{"x":237,"y":740,"width":650,"height":11}},{"id":"16320779-992c-4851-b997-bb23ead6dc60","block_type":"box","text":"negotiated debt obligations where the principal and/or interest is determined by reference to the performance of a","page_number":113,"box":{"x":69,"y":755,"width":818,"height":11}},{"id":"c817897c-a2c7-4b8f-8005-6278c12f8c05","block_type":"box","text":"specific asset, benchmark asset, market or interest rate (“reference measure”). Issuers of structured notes generally","page_number":113,"box":{"x":69,"y":770,"width":839,"height":12}},{"id":"ffa09f7f-6c7a-4aa8-b092-d8bc00a77571","block_type":"box","text":"include corporations and banks. The interest rate or the principal amount payable upon maturity or redemption may","page_number":113,"box":{"x":70,"y":786,"width":821,"height":11}},{"id":"f3420424-4354-4824-9861-d02402fda773","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":113,"box":{"x":70,"y":801,"width":839,"height":11}},{"id":"e648cc5b-74dc-4500-93c4-41da06a0103d","block_type":"box","text":"may provide that, in certain circumstances, no principal is due at maturity and, therefore, may result in a loss of","page_number":113,"box":{"x":69,"y":816,"width":801,"height":11}},{"id":"a60e5844-0dd3-4741-90b6-8b5606e8a489","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":113,"box":{"x":70,"y":831,"width":813,"height":11}},{"id":"7d45d9b4-8dd4-419b-b7a9-8ba26659ec40","block_type":"box","text":"vary widely, depending on a variety of factors, including the volatility of the reference measure.","page_number":113,"box":{"x":68,"y":846,"width":673,"height":11}},{"id":"304962c3-0f14-4f54-9367-a0d7f1964d3c","block_type":"box","text":"Structured notes may be positively or negatively indexed, so the appreciation of the reference measure may","page_number":113,"box":{"x":102,"y":869,"width":768,"height":11}},{"id":"dee3285a-4b14-4074-8aed-3def7557cbbb","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":113,"box":{"x":70,"y":884,"width":821,"height":11}},{"id":"6a913019-a6f6-4856-9750-9217a24dde6c","block_type":"box","text":"II-75","page_number":113,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7f543a34-f2b4-489b-9f6f-e2141161b5ad","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":113,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8559ea9f-0a65-434d-a817-cf94c50247e4","block_type":"box","text":"structured notes may be determined by applying a multiplier to the performance or differential performance of","page_number":114,"box":{"x":69,"y":45,"width":787,"height":11}},{"id":"9986dffd-e8de-469f-aacb-8c0d946d2c27","block_type":"box","text":"reference measures. Application of a multiplier involves leverage that will serve to magnify the potential for gain and","page_number":114,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"8bd2c1d0-5c41-4d99-8e5f-69ad86397905","block_type":"box","text":"the risk of loss.","page_number":114,"box":{"x":68,"y":75,"width":110,"height":9}},{"id":"543acd88-5c72-4b62-bb93-9a25b95bebf5","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":114,"box":{"x":101,"y":98,"width":759,"height":11}},{"id":"b9438611-85ff-4964-b0ed-a2cfdb5d96ce","block_type":"box","text":"Structured notes may also be more volatile, less liquid, and more difficult to price accurately than less complex","page_number":114,"box":{"x":69,"y":113,"width":795,"height":11}},{"id":"929a8205-18e2-41eb-8f72-f97580f9b944","block_type":"box","text":"securities and instruments or more traditional debt securities. The secondary market for structured notes could be","page_number":114,"box":{"x":69,"y":128,"width":819,"height":11}},{"id":"971518cd-e58b-498e-b4f2-09d229436b22","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":114,"box":{"x":70,"y":143,"width":821,"height":11}},{"id":"b8cc0e69-e869-4f23-9acd-d54b6a6ef3b7","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":114,"box":{"x":69,"y":158,"width":827,"height":11}},{"id":"0b4055be-7c0d-429f-a636-34c0c4531af1","block_type":"box","text":"losses and could make structured notes more difficult for the Fund to value accurately.","page_number":114,"box":{"x":70,"y":173,"width":618,"height":11}},{"id":"94981bf2-fff1-4a29-9f27-6fab9ffe3453","block_type":"box","text":"Taxability Risk.","page_number":114,"box":{"x":103,"y":196,"width":109,"height":11}},{"id":"118ad4bc-3429-4879-92d5-a5a8eb395a8c","block_type":"box","text":"Certain of the Funds intend to minimize the payment of taxable income to shareholders by","page_number":114,"box":{"x":218,"y":196,"width":644,"height":11}},{"id":"74f8b232-ed87-423b-a0e1-9d4c6658bdcf","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":114,"box":{"x":70,"y":211,"width":817,"height":11}},{"id":"1d08af45-f55f-419e-a5e9-f3849183ba21","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":114,"box":{"x":68,"y":226,"width":827,"height":11}},{"id":"b1ff8ff0-9fc2-46d8-ab0d-792ff375f184","block_type":"box","text":"be excludable from gross income for U.S. federal income tax purposes. Such securities, however, may be determined","page_number":114,"box":{"x":69,"y":241,"width":835,"height":11}},{"id":"acaa6ba1-322c-4edf-a6b8-796a4539ac1b","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":114,"box":{"x":68,"y":256,"width":809,"height":11}},{"id":"80c89192-ca2f-4439-b215-acaeacf2d94f","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":114,"box":{"x":69,"y":271,"width":832,"height":12}},{"id":"1bc4dc94-6b56-4319-b031-66585eacdfe0","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":114,"box":{"x":69,"y":286,"width":816,"height":12}},{"id":"06250dda-1c48-4b28-a854-9d215560ece8","block_type":"box","text":"paid by the Fund as “exempt interest dividends” could be adversely affected, subjecting the Fund’s shareholders to","page_number":114,"box":{"x":70,"y":302,"width":822,"height":11}},{"id":"0c79913a-932b-41d6-9c6a-2dcb8400a63f","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":114,"box":{"x":70,"y":317,"width":818,"height":11}},{"id":"34ad4d61-f354-4850-a653-da408cfc6125","block_type":"box","text":"Fund is subsequently determined to be taxable, the Fund will dispose of that security as soon as reasonably","page_number":114,"box":{"x":70,"y":332,"width":771,"height":11}},{"id":"54c987b7-e8e8-4eb4-81fc-186286ecd91f","block_type":"box","text":"practicable. In addition, future laws, regulations, rulings or court decisions may cause interest on municipal","page_number":114,"box":{"x":70,"y":347,"width":765,"height":11}},{"id":"994ad52f-5bd5-4e17-a63a-02b521909434","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":114,"box":{"x":69,"y":362,"width":834,"height":11}},{"id":"23faebe7-78fe-4c81-9f48-b8d0c050d9d5","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":114,"box":{"x":68,"y":377,"width":807,"height":11}},{"id":"12f837dd-820a-4fb5-8095-9b40132942fe","block_type":"box","text":"local intangible personal property tax, or may otherwise prevent the Fund from realizing the full current benefit of the","page_number":114,"box":{"x":70,"y":392,"width":830,"height":12}},{"id":"2a81732d-fb07-44e6-be0e-ebcdec621369","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":114,"box":{"x":68,"y":407,"width":838,"height":12}},{"id":"a263ce2a-3e20-4ee1-ab4c-dd0ce1165ca7","block_type":"box","text":"the value of an investment in the Fund.","page_number":114,"box":{"x":68,"y":423,"width":278,"height":9}},{"id":"ed995175-47d9-4a25-878a-be42164eeaba","block_type":"box","text":"Temporary Defensive Measures.","page_number":114,"box":{"x":103,"y":445,"width":230,"height":11}},{"id":"1ca2dffd-5ecb-40f9-850f-d6af3df63159","block_type":"box","text":"As a temporary defensive measure, including to respond to adverse market,","page_number":114,"box":{"x":339,"y":445,"width":542,"height":12}},{"id":"27a07561-a89c-4710-a522-db3748930133","block_type":"box","text":"economic, political or other conditions, a Fund may depart from its principal investment strategies and may invest","page_number":114,"box":{"x":69,"y":460,"width":811,"height":12}},{"id":"c0504b16-9ec9-4646-a958-440a21c12d66","block_type":"box","text":"without limitation in cash, high quality money market instruments, or other short term investments. Certain Funds","page_number":114,"box":{"x":68,"y":476,"width":813,"height":11}},{"id":"201f2706-efe5-435c-a6f1-fcb63dff0baa","block_type":"box","text":"may also invest in cash and other such instruments pending investment or to meet anticipated redemption requests.","page_number":114,"box":{"x":69,"y":491,"width":833,"height":11}},{"id":"56cbab68-3586-4f6e-9f9a-4b088d80a58e","block_type":"box","text":"High quality money market instruments include U.S. Government obligations, U.S. Government agency obligations,","page_number":114,"box":{"x":70,"y":506,"width":813,"height":11}},{"id":"b9ffa0b3-e91f-4815-8b7d-c1ac558163e2","block_type":"box","text":"dollar denominated obligations of foreign issuers, bank obligations, including U.S. subsidiaries and branches of","page_number":114,"box":{"x":69,"y":521,"width":795,"height":11}},{"id":"714e98b0-eefe-4372-a084-9d7d8ed4dc3f","block_type":"box","text":"foreign banks, corporate obligations, commercial paper, repurchase agreements and obligations of supranational","page_number":114,"box":{"x":68,"y":536,"width":806,"height":11}},{"id":"841b8273-d02a-47aa-bc94-5e4546b573c4","block_type":"box","text":"organizations. Generally, such obligations will mature within one year from the date of settlement but may mature","page_number":114,"box":{"x":69,"y":551,"width":808,"height":11}},{"id":"736bdf5a-5b73-401f-b1a0-f4712a2b02e5","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":114,"box":{"x":68,"y":566,"width":820,"height":11}},{"id":"5aa46b0e-3b24-4fd3-ae94-8d0fc5064ddf","block_type":"box","text":"its investment objective.","page_number":114,"box":{"x":70,"y":582,"width":171,"height":10}},{"id":"f58bf740-165b-406c-8b2c-b4df034431ae","block_type":"box","text":"U.S. Government Obligations.","page_number":114,"box":{"x":102,"y":604,"width":213,"height":11}},{"id":"c4733f98-108e-4d6b-bec2-79d260afc9b5","block_type":"box","text":"A Fund may purchase obligations issued or guaranteed by the U.S. Government","page_number":114,"box":{"x":321,"y":604,"width":566,"height":11}},{"id":"e31c34d6-9ada-467e-ab49-2b6a4fff8319","block_type":"box","text":"and U.S. Government agencies and instrumentalities. Obligations of certain agencies and instrumentalities of the","page_number":114,"box":{"x":69,"y":619,"width":810,"height":11}},{"id":"e2bb6850-36dd-4e31-9510-d840048a9c26","block_type":"box","text":"U.S. Government are supported by the full faith and credit of the U.S. Treasury. Others are supported by the right of","page_number":114,"box":{"x":70,"y":634,"width":826,"height":12}},{"id":"f9801b4b-e0a7-4bed-b73a-f66f5fb74df0","block_type":"box","text":"the issuer to borrow from the U.S. Treasury; and still others are supported only by the credit of the agency or","page_number":114,"box":{"x":68,"y":649,"width":779,"height":12}},{"id":"fcd1ed49-d2fb-4acd-9759-5b2175a8f3f8","block_type":"box","text":"instrumentality issuing the obligation. No assurance can be given that the U.S. Government will provide financial","page_number":114,"box":{"x":70,"y":664,"width":798,"height":12}},{"id":"343612b2-8609-45b7-b7ee-af3d56f49cee","block_type":"box","text":"support to U.S. Government-sponsored instrumentalities if it is not obligated to do so by law. Certain U.S. Treasury","page_number":114,"box":{"x":69,"y":680,"width":822,"height":11}},{"id":"145dcc2b-d07c-42cf-a2e0-896337d8e0af","block_type":"box","text":"and agency securities may be held by trusts that issue participation certificates (such as Treasury income growth","page_number":114,"box":{"x":69,"y":695,"width":809,"height":11}},{"id":"2c18efd8-0644-48cb-aa45-0d88ceaea7f3","block_type":"box","text":"receipts and certificates of accrual on Treasury certificates). These certificates, as well as Treasury receipts and","page_number":114,"box":{"x":69,"y":710,"width":805,"height":11}},{"id":"be7336c4-53e7-4b3b-99ca-b2be3391c38b","block_type":"box","text":"other stripped securities, represent beneficial ownership interests in either future interest payments or the future","page_number":114,"box":{"x":69,"y":725,"width":807,"height":11}},{"id":"a6eb1463-37f4-4c73-8712-40a4a7bd9bd4","block_type":"box","text":"principal payments on U.S. Government obligations. These instruments are issued at a discount to their “face value”","page_number":114,"box":{"x":70,"y":740,"width":832,"height":11}},{"id":"b533913f-59d6-4e2e-8bf9-a881bd19744a","block_type":"box","text":"and may (particularly in the case of stripped mortgage-backed securities) exhibit greater price volatility than ordinary","page_number":114,"box":{"x":69,"y":755,"width":829,"height":11}},{"id":"145c72d2-1613-4538-8dab-920b891f3247","block_type":"box","text":"debt securities because of the manner in which their principal and interest are returned to investors.","page_number":114,"box":{"x":69,"y":770,"width":716,"height":11}},{"id":"ad1b7646-6713-47bb-9123-83d1558bf690","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":114,"box":{"x":102,"y":793,"width":800,"height":11}},{"id":"ccc85047-9ae1-40e7-9137-bedb03acd444","block_type":"box","text":"Treasury Notes and Treasury Bonds and the obligations of the Federal Housing Administration, Farmers Home","page_number":114,"box":{"x":68,"y":808,"width":785,"height":11}},{"id":"9649ae1e-e51a-4ef4-86a2-43eb9112c498","block_type":"box","text":"Administration, Export-Import Bank of the United States, Small Business Administration, Ginnie Mae, Fannie Mae,","page_number":114,"box":{"x":68,"y":823,"width":813,"height":11}},{"id":"c89a73f4-490c-4d21-b173-59049fd099fe","block_type":"box","text":"Federal Financing Bank, General Services Administration, Student Loan Marketing Association, Central Bank for","page_number":114,"box":{"x":70,"y":838,"width":794,"height":12}},{"id":"a13a1859-f40d-4de7-8a2c-cdeccc6b99d5","block_type":"box","text":"Cooperatives, Federal Home Loan Banks, Freddie Mac, Federal Intermediate Credit Banks, Federal Land Banks, Farm","page_number":114,"box":{"x":69,"y":854,"width":835,"height":10}},{"id":"b10aaa05-9e8c-48a0-9477-a001d96fd094","block_type":"box","text":"Credit Banks System, Maritime Administration, Tennessee Valley Authority and Washington D.C. Armory Board. The","page_number":114,"box":{"x":69,"y":869,"width":818,"height":11}},{"id":"3ba4534a-586d-442a-aa46-bce72e269e78","block_type":"box","text":"Funds may also invest in mortgage-related securities issued or guaranteed by U.S. Government agencies and","page_number":114,"box":{"x":70,"y":884,"width":777,"height":11}},{"id":"9bb6967f-87a1-4a3d-bc75-f9d314971b88","block_type":"box","text":"instrumentalities, including such instruments as obligations of Ginnie Mae, Fannie Mae and Freddie Mac.","page_number":114,"box":{"x":70,"y":899,"width":749,"height":11}},{"id":"d0e04acb-29ae-405d-bda1-498ad35ceaac","block_type":"box","text":"II-76","page_number":114,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a21011c9-b651-4ff2-9ffd-f299109f5661","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":114,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8cfe4106-46d7-423b-ab7e-727f662135d2","block_type":"box","text":"U.S. Treasury Obligations.","page_number":115,"box":{"x":103,"y":45,"width":183,"height":11}},{"id":"a1a1eee8-9722-4d6b-a26a-df4cda539399","block_type":"box","text":"Treasury obligations may differ in their interest rates, maturities, times of issuance","page_number":115,"box":{"x":292,"y":45,"width":593,"height":11}},{"id":"6cac43ba-0b3a-449b-ba68-14656f35ff8f","block_type":"box","text":"and other characteristics. Obligations of U.S. Government agencies and authorities are supported by varying degrees","page_number":115,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"811cfd0d-c054-4572-a998-eed7fcee1c7d","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":115,"box":{"x":69,"y":75,"width":827,"height":11}},{"id":"22959b81-ae8e-4126-a1a6-d0c6302cd813","block_type":"box","text":"that the U.S. Government will provide financial support to its agencies and authorities if it is not obligated by law to","page_number":115,"box":{"x":68,"y":90,"width":823,"height":11}},{"id":"018d59cb-f606-40f6-9cf1-f9bcaba1207a","block_type":"box","text":"do so.","page_number":115,"box":{"x":69,"y":105,"width":42,"height":9}},{"id":"50c4e64a-e6cb-432d-8f13-f356cf67d722","block_type":"box","text":"U.S. Treasury Rolls","page_number":115,"box":{"x":102,"y":128,"width":139,"height":11}},{"id":"c02cd55e-ad4f-42b0-b557-69d1448656d2","block_type":"box","text":".","page_number":115,"box":{"x":241,"y":135,"width":3,"height":2}},{"id":"fc44c5d8-9375-4f4b-88d2-8151c242c930","block_type":"box","text":"Certain Funds may invest in U.S. Treasury rolls. In a U.S. Treasury roll transaction, the Fund","page_number":115,"box":{"x":250,"y":128,"width":656,"height":11}},{"id":"71d4caca-8b7c-400a-9553-afeefe6b99e9","block_type":"box","text":"sells a treasury security to a counterparty with a simultaneous agreement to repurchase the same security at an","page_number":115,"box":{"x":69,"y":143,"width":804,"height":11}},{"id":"894de12b-3712-406b-910f-b0e4c6245fac","block_type":"box","text":"agreed upon price and future settlement date. U.S. Treasury roll transactions may incrementally adjust the average","page_number":115,"box":{"x":69,"y":158,"width":820,"height":11}},{"id":"bcbaf8c3-06ca-43fe-bac3-07157d93bc14","block_type":"box","text":"maturity of a Fund’s portfolio and increase the interest yield on the Fund’s portfolio by extending the average maturity","page_number":115,"box":{"x":69,"y":173,"width":840,"height":11}},{"id":"dc96180a-9c9d-4151-a61f-6e6dab402ff2","block_type":"box","text":"of the portfolio in a normal yield curve environment. During the period before the settlement date of a U.S. Treasury","page_number":115,"box":{"x":69,"y":188,"width":828,"height":12}},{"id":"deb1fac0-0e7b-4dbd-81ad-8a1f274750d9","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":115,"box":{"x":69,"y":204,"width":775,"height":11}},{"id":"3979e9fb-a2fe-4b99-bb12-59c6773b5e72","block_type":"box","text":"securities it is purchasing until after the settlement date. A Fund could suffer an opportunity loss if the counterparty","page_number":115,"box":{"x":69,"y":218,"width":829,"height":12}},{"id":"6ee92d4b-130d-44c1-b3a7-0c4eed8b1fa6","block_type":"box","text":"to the U.S. Treasury roll transaction failed to perform its obligations on the settlement date.","page_number":115,"box":{"x":68,"y":234,"width":657,"height":11}},{"id":"df5e5c3f-386f-41ef-a4c8-8788a074816d","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":115,"box":{"x":101,"y":256,"width":756,"height":12}},{"id":"3fa5974d-ceb8-46e4-9886-9fb0520915f7","block_type":"box","text":"purchase price of those securities. U.S. Treasury rolls are speculative techniques that can be deemed to involve","page_number":115,"box":{"x":70,"y":271,"width":800,"height":12}},{"id":"139b5e52-578e-44fd-897b-37c39f3a7792","block_type":"box","text":"leverage. There is no assurance that U.S. Treasury rolls can be successfully employed.","page_number":115,"box":{"x":70,"y":286,"width":617,"height":12}},{"id":"ab6c4131-936a-431e-b95a-b29f275934bb","block_type":"box","text":"Utility Industries.","page_number":115,"box":{"x":102,"y":309,"width":124,"height":11}},{"id":"a61dcf96-93dd-45d2-8196-b3679debea1c","block_type":"box","text":"Risks that are intrinsic to the utility industries include difficulty in obtaining an adequate return","page_number":115,"box":{"x":233,"y":309,"width":674,"height":11}},{"id":"b4d82120-6fad-4d44-a802-04a988fa4afd","block_type":"box","text":"on invested capital, difficulty in financing large construction programs during an inflationary period, restrictions on","page_number":115,"box":{"x":69,"y":324,"width":812,"height":12}},{"id":"672b933a-aa84-4335-802d-838cb05c3774","block_type":"box","text":"operations and increased cost and delays attributable to environmental considerations and regulation, difficulty in","page_number":115,"box":{"x":69,"y":339,"width":812,"height":12}},{"id":"0fd5199c-df5e-4c77-b5a3-9feed72725c3","block_type":"box","text":"raising capital in adequate amounts on reasonable terms in periods of high inflation and unsettled capital markets,","page_number":115,"box":{"x":69,"y":355,"width":821,"height":11}},{"id":"bbcfa108-a940-4635-9eb1-6b671257d177","block_type":"box","text":"technological innovations that may render existing plants, equipment or products obsolete, the potential impact of","page_number":115,"box":{"x":68,"y":370,"width":815,"height":11}},{"id":"0035b2c1-bb1f-496c-b35a-ca57a606a97a","block_type":"box","text":"natural or man-made disasters, increased costs and reduced availability of certain types of fuel, occasional reduced","page_number":115,"box":{"x":69,"y":385,"width":827,"height":11}},{"id":"a1ef5df4-34ce-4435-abc7-97f3b6c4c3eb","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":115,"box":{"x":69,"y":400,"width":795,"height":11}},{"id":"ef1e365b-a449-4d44-affb-5a167b865c0b","block_type":"box","text":"energy policy and lengthy delays and greatly increased costs and other problems associated with the design,","page_number":115,"box":{"x":69,"y":415,"width":774,"height":11}},{"id":"5db06f67-a2eb-4d66-8dce-e9838d5b5a13","block_type":"box","text":"construction, licensing, regulation and operation of nuclear facilities for electric generation, including, among other","page_number":115,"box":{"x":69,"y":430,"width":817,"height":11}},{"id":"477c42f1-2928-45e6-b4fd-ba034e751dc5","block_type":"box","text":"considerations, the problems associated with the use of radioactive materials and the disposal of radioactive wastes.","page_number":115,"box":{"x":69,"y":445,"width":839,"height":11}},{"id":"32ec1b1e-6c59-4b9c-bad2-ac999be2bf66","block_type":"box","text":"There are substantial differences among the regulatory practices and policies of various jurisdictions, and any given","page_number":115,"box":{"x":68,"y":460,"width":827,"height":12}},{"id":"b7c97f08-7492-4b42-a5db-d15bd984834b","block_type":"box","text":"regulatory agency may make major shifts in policy from time to time. There is no assurance that regulatory","page_number":115,"box":{"x":69,"y":475,"width":761,"height":12}},{"id":"8f6cf781-910c-441a-a22c-36f2ee4e8567","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":115,"box":{"x":69,"y":491,"width":821,"height":11}},{"id":"339f1463-1a17-41aa-b9ca-2748b54e12c9","block_type":"box","text":"dividends on common stocks issued by a utility company. Additionally, existing and possible future regulatory","page_number":115,"box":{"x":69,"y":506,"width":777,"height":11}},{"id":"eaaa80a2-b816-4dc2-a168-75a931c4db9c","block_type":"box","text":"legislation may make it even more difficult for utilities to obtain adequate relief. Certain of the issuers of securities","page_number":115,"box":{"x":70,"y":521,"width":820,"height":11}},{"id":"3a23d00f-ee46-4c27-bfe4-fa38a8cc7750","block_type":"box","text":"held in the Fund’s portfolio may own or operate nuclear generating facilities. Governmental authorities may from time","page_number":115,"box":{"x":69,"y":536,"width":835,"height":11}},{"id":"1a38e828-56e1-4723-b97e-f45cae4b89a7","block_type":"box","text":"to time review existing policies and impose additional requirements governing the licensing, construction and","page_number":115,"box":{"x":68,"y":551,"width":778,"height":11}},{"id":"56ba80ea-c033-4cce-bf11-051ef84f041b","block_type":"box","text":"operation of nuclear power plants. Prolonged changes in climatic conditions can also have a significant impact on","page_number":115,"box":{"x":69,"y":566,"width":808,"height":11}},{"id":"763b99bd-df01-4f9a-bca8-ef881b7d5708","block_type":"box","text":"both the revenues of an electric and gas utility as well as the expenses of a utility, particularly a hydro-based electric","page_number":115,"box":{"x":69,"y":581,"width":831,"height":12}},{"id":"16c29ffc-3bfa-4d82-af56-dad02eb5a149","block_type":"box","text":"utility.","page_number":115,"box":{"x":69,"y":597,"width":39,"height":11}},{"id":"7a10b03e-cda4-4b75-bdc7-9993acd8a179","block_type":"box","text":"Companies in the utilities sector may be adversely affected by changes in exchange rates, domestic and","page_number":115,"box":{"x":102,"y":619,"width":744,"height":11}},{"id":"a5a0949e-b35a-4329-9bdf-0253c36fe7bc","block_type":"box","text":"international competition, and governmental limitations on rates charged to customers. The value of regulated utility","page_number":115,"box":{"x":70,"y":634,"width":828,"height":12}},{"id":"8f4346dd-8a36-4ec7-81ae-2f67580325dc","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":115,"box":{"x":69,"y":649,"width":817,"height":12}},{"id":"c5f763ab-7a36-4543-92bd-336d45230e7c","block_type":"box","text":"interest rates and therefore may lead to volatility in performance.","page_number":115,"box":{"x":70,"y":664,"width":464,"height":12}},{"id":"b940c1ab-efcb-4a88-8337-c84a79b0eaef","block_type":"box","text":"Utility companies in the United States and in foreign countries are generally subject to regulation. In the United","page_number":115,"box":{"x":102,"y":687,"width":789,"height":11}},{"id":"192d7375-1748-47d0-853f-3721141fc4ff","block_type":"box","text":"States, most utility companies are regulated by state and/or federal authorities. Such regulation is intended to","page_number":115,"box":{"x":69,"y":702,"width":790,"height":12}},{"id":"d1913853-1f7e-48df-ac91-c5fe2084a33d","block_type":"box","text":"ensure appropriate standards of service and adequate capacity to meet public demand. Generally, prices are also","page_number":115,"box":{"x":69,"y":717,"width":811,"height":12}},{"id":"122266e8-f6c4-4330-8804-c8204a0c6f51","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":115,"box":{"x":69,"y":732,"width":824,"height":12}},{"id":"c1319b1f-cb6d-4d82-b188-2abdd1466a1e","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":115,"box":{"x":68,"y":748,"width":781,"height":11}},{"id":"f87f92f0-10e6-4d50-8045-b9c34938b90e","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":115,"box":{"x":69,"y":763,"width":826,"height":11}},{"id":"92d704dd-c946-4590-a70e-40273eba1629","block_type":"box","text":"continue in the future.","page_number":115,"box":{"x":69,"y":778,"width":156,"height":9}},{"id":"4c9422e1-1c05-4eaf-bccd-b87000e9c127","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":115,"box":{"x":101,"y":801,"width":763,"height":11}},{"id":"e50b98e3-9aa0-4034-8e0d-c052ec5faf87","block_type":"box","text":"countries. In recent years, changes in regulation in the United States increasingly have allowed utility companies to","page_number":115,"box":{"x":69,"y":816,"width":820,"height":11}},{"id":"ececcfcb-a990-4031-9e8d-75d6e9a5fc7d","block_type":"box","text":"provide services and products outside their traditional geographic areas and lines of business, creating new areas of","page_number":115,"box":{"x":70,"y":831,"width":834,"height":11}},{"id":"4cc0e51a-563a-4189-8a20-b759f712797f","block_type":"box","text":"competition within the industries. In some instances, utility companies are operating on an unregulated basis.","page_number":115,"box":{"x":69,"y":846,"width":784,"height":11}},{"id":"b4f4ffd8-2955-4f0a-86fa-aa78172d996c","block_type":"box","text":"Because of trends toward deregulation and the evolution of independent power producers as well as new entrants to","page_number":115,"box":{"x":70,"y":861,"width":830,"height":11}},{"id":"793d6418-6166-40cb-97b3-5a007c31048a","block_type":"box","text":"the field of telecommunications, non-regulated providers of utility services have become a significant part of their","page_number":115,"box":{"x":68,"y":876,"width":809,"height":11}},{"id":"b1bf73d4-7386-45af-85b1-de31f80e66b9","block_type":"box","text":"respective industries. The Manager believes that the emergence of competition and deregulation will result in certain","page_number":115,"box":{"x":69,"y":891,"width":834,"height":12}},{"id":"260ac265-b4a6-46b1-9c9c-396920c3830f","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":115,"box":{"x":69,"y":906,"width":825,"height":12}},{"id":"deaafc46-feee-41b8-baea-0ec220f99143","block_type":"box","text":"II-77","page_number":115,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"00e7294f-2618-44a2-ba3c-bb1906cb1cb7","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":115,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1f1d3f50-dd53-4199-bdfa-acf3867dc8bc","block_type":"box","text":"to defend their core business from increased competition and may be less profitable. Reduced profitability, as well as","page_number":116,"box":{"x":68,"y":45,"width":840,"height":11}},{"id":"c2fe5e1f-0002-4332-b213-edb3e84386fa","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":116,"box":{"x":69,"y":60,"width":796,"height":11}},{"id":"b51d5822-2d7d-4ecc-ba69-96732561bc0a","block_type":"box","text":"rates. As deregulation allows utility companies to diversify outside of their original geographic regions and their","page_number":116,"box":{"x":69,"y":75,"width":790,"height":11}},{"id":"3fd01a2f-868d-43b8-a701-8548e18304a2","block_type":"box","text":"traditional lines of business, utility companies may engage in riskier ventures. Therefore, deregulation may eliminate","page_number":116,"box":{"x":68,"y":90,"width":831,"height":11}},{"id":"7c6e4997-254c-4c71-a83c-73bd64d20be9","block_type":"box","text":"restrictions on the maximum level of profits of certain utility companies, but may also subject these companies to","page_number":116,"box":{"x":69,"y":105,"width":812,"height":11}},{"id":"68088fb3-ac68-4ced-82f0-56c191f5f9eb","block_type":"box","text":"greater risk of loss. The Manager seeks to take advantage of favorable investment opportunities that may arise from","page_number":116,"box":{"x":68,"y":120,"width":833,"height":12}},{"id":"052b571f-3bda-4790-92ed-626d097b2f3f","block_type":"box","text":"these structural changes. Of course, there can be no assurance that favorable developments will occur in the future.","page_number":116,"box":{"x":68,"y":135,"width":831,"height":12}},{"id":"fbd0102c-3c9b-4a8d-8cf3-ba6912f38a98","block_type":"box","text":"Foreign utility companies are also subject to regulation, although such regulations may or may not be","page_number":116,"box":{"x":102,"y":158,"width":720,"height":11}},{"id":"00b9dc3f-1e38-4fc4-bb9a-36a352442056","block_type":"box","text":"comparable to those in the United States. Foreign utility companies may be more heavily regulated by their respective","page_number":116,"box":{"x":69,"y":173,"width":838,"height":11}},{"id":"478d706a-0afc-4b71-b20a-0f1c34ec9811","block_type":"box","text":"governments than utilities in the United States and, as in the United States, generally are required to seek","page_number":116,"box":{"x":68,"y":188,"width":762,"height":12}},{"id":"140baf45-9684-40a8-837e-f94b76d0a6fa","block_type":"box","text":"government approval for rate increases. In addition, many foreign utilities use fuels that may cause more pollution","page_number":116,"box":{"x":68,"y":203,"width":815,"height":12}},{"id":"f441b2c5-a30f-40cf-ad2a-bcdb524aa14d","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":116,"box":{"x":68,"y":219,"width":801,"height":11}},{"id":"c5868a86-f128-49a1-a2b9-b7359f4fa17e","block_type":"box","text":"meet any proposed pollution restrictions. Foreign regulatory systems vary from country to country and may evolve in","page_number":116,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"cc229380-b098-4f75-b6ee-b4e4103197c1","block_type":"box","text":"ways different from regulation in the United States.","page_number":116,"box":{"x":68,"y":249,"width":365,"height":11}},{"id":"381d4cbe-20a2-488c-bbb1-af7f1478bbb7","block_type":"box","text":"A Fund’s investment policies are designed to enable it to capitalize on evolving investment opportunities","page_number":116,"box":{"x":101,"y":272,"width":745,"height":11}},{"id":"a446b8ad-1563-4a69-95e7-669f0aaa579a","block_type":"box","text":"throughout the world. For example, the rapid growth of certain foreign economies will necessitate expansion of","page_number":116,"box":{"x":68,"y":286,"width":790,"height":12}},{"id":"5c7a8437-679c-4ff1-a755-c804646abbc7","block_type":"box","text":"capacity in the utility industries in those countries. Although many foreign utility companies currently are government","page_number":116,"box":{"x":69,"y":302,"width":833,"height":11}},{"id":"5502d030-6714-4d03-bf01-6ad6e1a218e3","block_type":"box","text":"owned, thereby limiting current investment opportunities for a Fund, the Manager believes that, in order to attract","page_number":116,"box":{"x":69,"y":317,"width":810,"height":11}},{"id":"9dada75a-a517-43c0-8623-f82220ca32bd","block_type":"box","text":"significant capital for growth, foreign governments are likely to seek global investors through the privatization of their","page_number":116,"box":{"x":69,"y":332,"width":831,"height":11}},{"id":"276fff82-3672-49d8-9693-5103ba80873f","block_type":"box","text":"utility industries. Privatization, which refers to the trend toward investor ownership of assets rather than government","page_number":116,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"21312742-2420-41cc-b027-e86dad7651ec","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":116,"box":{"x":69,"y":362,"width":832,"height":11}},{"id":"38b2a102-34d4-4084-ad34-a283fe0889d0","block_type":"box","text":"assurance that such favorable developments will occur or that investment opportunities in foreign markets will","page_number":116,"box":{"x":69,"y":377,"width":786,"height":12}},{"id":"4ad9f939-91d7-4d95-aace-44c54f2585cb","block_type":"box","text":"increase.","page_number":116,"box":{"x":70,"y":393,"width":63,"height":8}},{"id":"b2f2d119-ff97-494c-bb88-b3d4d4aa1915","block_type":"box","text":"The revenues of domestic and foreign utility companies generally reflect the economic growth and development","page_number":116,"box":{"x":101,"y":415,"width":793,"height":11}},{"id":"cb7884a0-7ded-4405-a46c-28e04ade1265","block_type":"box","text":"in the geographic areas in which they do business. The Manager will take into account anticipated economic growth","page_number":116,"box":{"x":70,"y":430,"width":821,"height":11}},{"id":"92f107eb-35c9-4b9f-a759-ca3e6ad47922","block_type":"box","text":"rates and other economic developments when selecting securities of utility companies.","page_number":116,"box":{"x":69,"y":445,"width":619,"height":12}},{"id":"9656efac-52e1-4634-877c-e3ff9c7eaa32","block_type":"box","text":"Electric.","page_number":116,"box":{"x":102,"y":468,"width":54,"height":9}},{"id":"0ae05cf8-566d-4e10-9fc3-16e77f1ca671","block_type":"box","text":"The electric utility industry consists of companies that are engaged principally in the generation,","page_number":116,"box":{"x":163,"y":468,"width":684,"height":11}},{"id":"5045abe9-68bb-4051-a6cc-b656031c1dba","block_type":"box","text":"transmission and sale of electric energy, although many also provide other energy-related services. In the past,","page_number":116,"box":{"x":68,"y":483,"width":793,"height":11}},{"id":"e1b0d6f3-f45f-4a9a-8526-930804eddc8b","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":116,"box":{"x":69,"y":498,"width":814,"height":11}},{"id":"de7bda38-71b8-4d2f-8105-121481b203fc","block_type":"box","text":"near completion of major construction programs. In addition, many of these companies have generated cash flows in","page_number":116,"box":{"x":69,"y":513,"width":833,"height":12}},{"id":"e20c35af-a664-4a9b-9dde-d56725fae42b","block_type":"box","text":"excess of current operating expenses and construction expenditures, permitting some degree of diversification into","page_number":116,"box":{"x":69,"y":528,"width":821,"height":12}},{"id":"cee5ce18-57a8-443c-9c39-e8d9c973d409","block_type":"box","text":"unregulated businesses. Some electric utilities have also taken advantage of the right to sell power outside of their","page_number":116,"box":{"x":69,"y":543,"width":823,"height":12}},{"id":"7666e13e-081a-406f-b7df-e3caaeb1015a","block_type":"box","text":"traditional geographic areas. Electric utility companies have historically been subject to the risks associated with","page_number":116,"box":{"x":68,"y":559,"width":803,"height":11}},{"id":"beb21e0b-1cbe-408d-af57-75f2175255ee","block_type":"box","text":"increases in fuel and other operating costs, high interest costs on borrowings needed for capital construction","page_number":116,"box":{"x":70,"y":574,"width":778,"height":11}},{"id":"9d18265b-1c0e-4e11-9cec-0655ea5faf12","block_type":"box","text":"programs, costs associated with compliance with environmental and safety regulations and changes in the regulatory","page_number":116,"box":{"x":70,"y":589,"width":836,"height":11}},{"id":"414f4a66-4e88-47b0-b810-177b4de3204b","block_type":"box","text":"climate. As interest rates declined, many utilities refinanced high cost debt and in doing so improved their fixed","page_number":116,"box":{"x":69,"y":604,"width":793,"height":11}},{"id":"2d559d6c-abac-46de-aecd-c8169497b5bc","block_type":"box","text":"charges coverage. Regulators, however, lowered allowed rates of return as interest rates declined and thereby","page_number":116,"box":{"x":69,"y":619,"width":786,"height":11}},{"id":"370e7f19-bd06-462c-ba05-aabd4a00aba3","block_type":"box","text":"caused the benefits of the rate declines to be shared wholly or in part with customers. In a period of rising interest","page_number":116,"box":{"x":69,"y":634,"width":819,"height":12}},{"id":"122fc193-e10c-47d3-8461-ee4bacd7952e","block_type":"box","text":"rates, the allowed rates of return may not keep pace with the utilities’ increased costs. The construction and","page_number":116,"box":{"x":69,"y":649,"width":775,"height":12}},{"id":"aa048594-b6ea-4068-ad77-ee23ec8bb1d2","block_type":"box","text":"operation of nuclear power facilities are subject to strict scrutiny by, and evolving regulations of, the Nuclear","page_number":116,"box":{"x":69,"y":664,"width":770,"height":12}},{"id":"7c060902-89e4-4f55-b005-699d1602227c","block_type":"box","text":"Regulatory Commission and state agencies which have comparable jurisdiction. Strict scrutiny might result in higher","page_number":116,"box":{"x":70,"y":680,"width":826,"height":11}},{"id":"b536a28b-400d-4bc9-b0fd-d8d96be00d5f","block_type":"box","text":"operating costs and higher capital expenditures, with the risk that the regulators may disallow inclusion of these","page_number":116,"box":{"x":69,"y":695,"width":800,"height":11}},{"id":"2ef56c81-8132-4c7b-af5f-de4aec51002a","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":116,"box":{"x":69,"y":710,"width":836,"height":11}},{"id":"ee7f300e-3e74-43ee-960d-0b279ab1dd95","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":116,"box":{"x":68,"y":725,"width":826,"height":11}},{"id":"3ac87f6a-e206-4762-a0b3-c1f4bd7b2fcf","block_type":"box","text":"and for decommissioning such plants.","page_number":116,"box":{"x":69,"y":740,"width":270,"height":11}},{"id":"db8b506b-bcbc-4845-a1e2-f0c58f519561","block_type":"box","text":"The rating agencies look closely at the business profile of utilities. Ratings for companies are expected to be","page_number":116,"box":{"x":101,"y":763,"width":776,"height":11}},{"id":"e5e58ece-d000-4613-8967-595170ba6d72","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":116,"box":{"x":70,"y":778,"width":802,"height":11}},{"id":"7b640be2-b8fe-45e8-9510-c5b735776494","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":116,"box":{"x":69,"y":793,"width":791,"height":11}},{"id":"6540ec67-9a25-4c47-b0b1-c48ab767042a","block_type":"box","text":"competitive and the least regulated. On the other hand, companies that focus on transmission and distribution, which","page_number":116,"box":{"x":69,"y":808,"width":839,"height":11}},{"id":"01824c3d-d45d-4530-bf6e-80d9d5b163e9","block_type":"box","text":"is expected to be the least competitive and the more regulated part of the business, may see higher ratings given the","page_number":116,"box":{"x":70,"y":823,"width":838,"height":12}},{"id":"a2ba54fe-2733-46f7-af8b-f386917ea605","block_type":"box","text":"greater predictability of cash flow.","page_number":116,"box":{"x":68,"y":838,"width":239,"height":12}},{"id":"68a8430f-08d2-44cf-b059-50a1baf6d898","block_type":"box","text":"A number of states are considering or have enacted deregulation proposals. The introduction of competition into","page_number":116,"box":{"x":101,"y":861,"width":801,"height":11}},{"id":"e206c034-4e36-4d26-92ce-b9a88dd96fe5","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":116,"box":{"x":68,"y":876,"width":821,"height":11}},{"id":"7954aa2e-c31d-467f-bef9-3c4c463faaab","block_type":"box","text":"default risk, and lower electric utility security prices. Such increased competition may also cause long-term contracts,","page_number":116,"box":{"x":69,"y":891,"width":835,"height":12}},{"id":"e068b0b4-e673-473e-bbbe-69019c505a6f","block_type":"box","text":"which electric utilities previously entered into to buy power, to become “stranded assets” which have no economic","page_number":116,"box":{"x":68,"y":907,"width":815,"height":11}},{"id":"4befe97e-cdd8-4f76-8685-8f367673087f","block_type":"box","text":"II-78","page_number":116,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b8ae4c82-0025-4f2b-8579-960a09f75d70","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":116,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5b1add0b-a671-448c-8e5c-2dd79a3549dc","block_type":"box","text":"value. Any loss associated with such contracts must be absorbed by ratepayers and investors. In addition, some","page_number":117,"box":{"x":68,"y":45,"width":803,"height":11}},{"id":"5af7634a-3aa6-40a6-a29b-129245400420","block_type":"box","text":"electric utilities have acquired electric utilities overseas to diversify, enhance earnings and gain experience in","page_number":117,"box":{"x":69,"y":60,"width":777,"height":11}},{"id":"a63f4785-cd1a-4a36-822e-cd083c40cb10","block_type":"box","text":"operating in a deregulated environment. In some instances, such acquisitions have involved significant borrowings,","page_number":117,"box":{"x":69,"y":75,"width":819,"height":11}},{"id":"d91b3dea-6265-4b77-848a-28a755a188d0","block_type":"box","text":"which have burdened the acquirer’s balance sheet. There is no assurance that current deregulation proposals will be","page_number":117,"box":{"x":68,"y":90,"width":835,"height":11}},{"id":"3289479a-4de9-4b3a-8b1b-51653f3a9c44","block_type":"box","text":"adopted. However, deregulation in any form could significantly impact the electric utilities industry.","page_number":117,"box":{"x":69,"y":105,"width":700,"height":11}},{"id":"505863de-facd-49d7-adb1-340360bedb03","block_type":"box","text":"Telecommunications.","page_number":117,"box":{"x":103,"y":128,"width":147,"height":9}},{"id":"147a408c-97bf-43f7-94ca-b1173674b29b","block_type":"box","text":"The telecommunications industry today includes both traditional telephone companies, with","page_number":117,"box":{"x":256,"y":128,"width":652,"height":11}},{"id":"b9863418-8b39-437d-a6b3-e69c94338d9a","block_type":"box","text":"a history of broad market coverage and highly regulated businesses, and cable companies, which began as small,","page_number":117,"box":{"x":69,"y":143,"width":813,"height":11}},{"id":"03471ac8-fe6c-4715-b843-244bce2205bd","block_type":"box","text":"lightly regulated businesses focused on limited markets. Today these two historically different businesses are","page_number":117,"box":{"x":70,"y":158,"width":782,"height":11}},{"id":"7812a349-184c-4366-b0af-eef679fd01ff","block_type":"box","text":"converging in an industry that is trending toward larger, competitive national and international markets with an","page_number":117,"box":{"x":69,"y":173,"width":786,"height":11}},{"id":"e2937199-5517-4e8b-b2d1-307ff4b24460","block_type":"box","text":"emphasis on deregulation. Companies that distribute telephone services and provide access to the telephone","page_number":117,"box":{"x":69,"y":188,"width":784,"height":12}},{"id":"2ec1b5b2-d873-4b07-b85d-d72532902195","block_type":"box","text":"networks still comprise the greatest portion of this segment, but non-regulated activities such as wireless telephone","page_number":117,"box":{"x":69,"y":203,"width":830,"height":12}},{"id":"305e1104-e31c-45d7-80fa-8fc3ca32221c","block_type":"box","text":"services, paging, data transmission and processing, equipment retailing, computer software and hardware and","page_number":117,"box":{"x":69,"y":218,"width":790,"height":12}},{"id":"07ac894f-36c8-405d-93eb-b43b6c083b19","block_type":"box","text":"internet services are becoming increasingly significant components as well. In particular, wireless and internet","page_number":117,"box":{"x":70,"y":234,"width":788,"height":11}},{"id":"947bf241-0292-477f-9efa-8632b2b3a034","block_type":"box","text":"telephone services continue to gain market share at the expense of traditional telephone companies. The presence","page_number":117,"box":{"x":68,"y":249,"width":825,"height":11}},{"id":"cf79ce02-d81c-4b3a-9fdc-899445028571","block_type":"box","text":"of unregulated companies in this industry and the entry of traditional telephone companies into unregulated or less","page_number":117,"box":{"x":69,"y":264,"width":823,"height":11}},{"id":"5334e3c9-cdfa-4a70-a152-b684c97c7480","block_type":"box","text":"regulated businesses provide significant investment opportunities with companies that may increase their earnings","page_number":117,"box":{"x":69,"y":279,"width":821,"height":11}},{"id":"5dd99b2a-f2aa-4673-8be4-50fb3ffb5569","block_type":"box","text":"at faster rates than had been allowed in traditional regulated businesses. Still, increasing competition, technological","page_number":117,"box":{"x":69,"y":294,"width":830,"height":11}},{"id":"c3061690-cb78-4db7-b98c-875661503709","block_type":"box","text":"innovations and other structural changes could adversely affect the profitability of such utilities and the growth rate","page_number":117,"box":{"x":70,"y":309,"width":821,"height":11}},{"id":"2cfa53c9-f92d-4ea7-8930-a9ea899d8d67","block_type":"box","text":"of their dividends. Given mergers and proposed legislation and enforcement changes, it is likely that both traditional","page_number":117,"box":{"x":69,"y":324,"width":827,"height":12}},{"id":"2f2bd9a8-872f-42e1-8d13-17037118bcda","block_type":"box","text":"telephone companies and cable companies will continue to provide an expanding range of utility services to both","page_number":117,"box":{"x":68,"y":339,"width":804,"height":12}},{"id":"45000ee6-d7c2-4af5-86ff-15cd9b534ddd","block_type":"box","text":"residential, corporate and governmental customers.","page_number":117,"box":{"x":69,"y":355,"width":367,"height":11}},{"id":"778f3dee-4a9a-4d87-aee6-e3054abfda6d","block_type":"box","text":"Gas.","page_number":117,"box":{"x":102,"y":377,"width":31,"height":9}},{"id":"c6bdd821-7b28-494b-af6a-65e43577a241","block_type":"box","text":"Gas transmission companies and gas distribution companies are undergoing significant changes. In the","page_number":117,"box":{"x":139,"y":377,"width":740,"height":12}},{"id":"037cb4e0-e698-48f6-9ce0-59cc9d7e4891","block_type":"box","text":"United States, interstate transmission companies are regulated by the Federal Energy Regulatory Commission, which","page_number":117,"box":{"x":70,"y":392,"width":834,"height":12}},{"id":"92a99e21-fa1b-4061-ae29-e93b46650a91","block_type":"box","text":"is reducing its regulation of the industry. Many companies have diversified into oil and gas exploration and","page_number":117,"box":{"x":70,"y":407,"width":756,"height":12}},{"id":"f5231564-019b-40f0-847c-bf12c5fa937f","block_type":"box","text":"development, making returns more sensitive to energy prices. In the recent decade, gas utility companies have been","page_number":117,"box":{"x":69,"y":423,"width":831,"height":11}},{"id":"6fb40166-047e-4b63-8091-bf44a3ebdbd6","block_type":"box","text":"adversely affected by disruptions in the oil industry and have also been affected by increased concentration and","page_number":117,"box":{"x":69,"y":438,"width":801,"height":11}},{"id":"69fa3499-2be6-43ec-b152-5d51b935a4e2","block_type":"box","text":"competition. In the opinion of the Manager, however, environmental considerations could improve the gas industry","page_number":117,"box":{"x":69,"y":453,"width":815,"height":11}},{"id":"a178b720-8f40-42ee-8031-193304c7f7a0","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":117,"box":{"x":69,"y":468,"width":782,"height":11}},{"id":"31cc5ac9-0f39-45c4-865f-7f9e2c983bca","block_type":"box","text":"incremental shifts in fuel consumption toward natural gas and away from oil and coal, even for electricity generation.","page_number":117,"box":{"x":70,"y":483,"width":829,"height":11}},{"id":"ca8a21d1-e9dd-44c4-957b-0e746128d275","block_type":"box","text":"However, technological or regulatory changes within the industry may delay or prevent this result.","page_number":117,"box":{"x":70,"y":498,"width":691,"height":11}},{"id":"f174dfda-50a2-4322-928b-cc3575897abe","block_type":"box","text":"Water.","page_number":117,"box":{"x":103,"y":521,"width":42,"height":9}},{"id":"0678e454-6cf8-46bd-b1e0-1e2f38da7e91","block_type":"box","text":"Water supply utilities are companies that collect, purify, distribute and sell water. In the United States and","page_number":117,"box":{"x":151,"y":521,"width":754,"height":11}},{"id":"bd567623-c117-4048-99a4-fd496e14744f","block_type":"box","text":"around the world the industry is highly fragmented because most of the supplies are owned by local authorities.","page_number":117,"box":{"x":69,"y":536,"width":796,"height":11}},{"id":"6e55b1b7-b462-4ae8-b88b-e541002c37c8","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":117,"box":{"x":69,"y":551,"width":806,"height":11}},{"id":"a7b0101e-faef-434c-8c63-9b0f1bebad14","block_type":"box","text":"opinion of the Manager, there may be opportunities for certain companies to acquire other water utility companies","page_number":117,"box":{"x":69,"y":566,"width":814,"height":11}},{"id":"2d3a534b-6017-48d1-85f7-1ca3142ca4dc","block_type":"box","text":"and for foreign acquisition of domestic companies. The Manager believes that favorable investment opportunities","page_number":117,"box":{"x":69,"y":581,"width":808,"height":12}},{"id":"a49a01c5-ba0c-4658-80d4-c50eecc28182","block_type":"box","text":"may result from consolidation of this segment. As with other utilities, however, increased regulation, increased costs","page_number":117,"box":{"x":69,"y":596,"width":832,"height":12}},{"id":"526670ff-5434-44d5-bb46-66aca9d61226","block_type":"box","text":"and potential disruptions in supply may adversely affect investments in water supply utilities.","page_number":117,"box":{"x":69,"y":612,"width":662,"height":11}},{"id":"62667aa4-1fb8-4320-905e-2e74679fbf31","block_type":"box","text":"Utility Industries Generally.","page_number":117,"box":{"x":103,"y":634,"width":186,"height":11}},{"id":"3bce74e5-d3e2-40d6-a74d-471354eccd4a","block_type":"box","text":"There can be no assurance that the positive developments noted above, including","page_number":117,"box":{"x":296,"y":634,"width":584,"height":12}},{"id":"f1f53fbe-6f42-4940-b4c1-8df7727c8204","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":117,"box":{"x":68,"y":649,"width":837,"height":12}},{"id":"eda37f45-ab34-4752-89e5-3e5a5e53dac2","block_type":"box","text":"not develop in the future.","page_number":117,"box":{"x":69,"y":664,"width":178,"height":11}},{"id":"368a2b5a-a17b-46af-b87c-213ab3b8eb62","block_type":"box","text":"When-Issued Securities, Delayed Delivery Securities and Forward Commitments.","page_number":117,"box":{"x":103,"y":687,"width":585,"height":11}},{"id":"58eaa8e7-d408-4d32-941f-cd52a3706554","block_type":"box","text":"A Fund may purchase or sell","page_number":117,"box":{"x":694,"y":687,"width":200,"height":11}},{"id":"22c29852-a2b3-4a8f-a313-e7e96f24221a","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":117,"box":{"x":69,"y":703,"width":795,"height":10}},{"id":"bd919ec1-f63d-484b-9c8a-9ec584b7101e","block_type":"box","text":"delayed delivery basis or through a forward commitment (including on a TBA (to be announced) basis). These","page_number":117,"box":{"x":69,"y":717,"width":777,"height":12}},{"id":"2c03a2cc-dcdf-4efe-b389-f3c12668061c","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":117,"box":{"x":68,"y":732,"width":820,"height":12}},{"id":"d64e7e91-bfe9-4aeb-be0f-8310f87c7398","block_type":"box","text":"taking place in the future. The Fund enters into these transactions to obtain what is considered an advantageous","page_number":117,"box":{"x":68,"y":748,"width":807,"height":11}},{"id":"5486fea5-d2b0-49e0-873b-3ad3af165e11","block_type":"box","text":"price to the Fund at the time of entering into the transaction.","page_number":117,"box":{"x":70,"y":763,"width":430,"height":11}},{"id":"335bd666-ecd1-45e0-b51d-063101c0b159","block_type":"box","text":"Pursuant to recommendations of the Treasury Market Practices Group, which is sponsored by the Federal","page_number":117,"box":{"x":102,"y":785,"width":750,"height":12}},{"id":"f0ec5d5a-d1bc-40b8-ba42-299bc764efe2","block_type":"box","text":"Reserve Bank of New York, a Fund or its counterparty generally will be required to post collateral when entering into","page_number":117,"box":{"x":70,"y":801,"width":823,"height":11}},{"id":"5b68368e-ea29-4a26-99df-cf69d438199e","block_type":"box","text":"certain forward-settling transactions, including without limitation TBA transactions. FINRA rules have also been","page_number":117,"box":{"x":69,"y":816,"width":788,"height":11}},{"id":"5b18e703-7e1b-44aa-863a-90388beaca0d","block_type":"box","text":"implemented that include mandatory margin requirements for the TBA market with limited exceptions. The","page_number":117,"box":{"x":70,"y":831,"width":755,"height":11}},{"id":"29851aa7-5a55-4354-88d7-a43a54bf5fb4","block_type":"box","text":"collateralization of TBA trades is intended to mitigate counterparty credit risk between trade and settlement, but","page_number":117,"box":{"x":69,"y":846,"width":799,"height":11}},{"id":"a55ff2f6-2ff2-46b0-b9f6-970811803339","block_type":"box","text":"could increase the cost of TBA transactions and impose added operational complexity.","page_number":117,"box":{"x":69,"y":861,"width":614,"height":11}},{"id":"43d54e23-b72a-4a81-be55-b5d88925fe12","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":117,"box":{"x":101,"y":884,"width":780,"height":11}},{"id":"ea59023f-4e17-4ba6-b393-ea766602957c","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":117,"box":{"x":70,"y":899,"width":823,"height":11}},{"id":"4cc41baf-fb33-449e-aad4-5614facd3e1e","block_type":"box","text":"II-79","page_number":117,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"cbb44d90-30d8-41b9-9b03-1d6d697e6707","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":117,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b320c142-86c5-430c-b25e-f1ddf9b7e8f2","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":118,"box":{"x":69,"y":45,"width":838,"height":11}},{"id":"470579c4-daad-490c-8616-5b72f4d802cf","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":118,"box":{"x":68,"y":60,"width":839,"height":11}},{"id":"3bc8ec58-561e-41d6-9409-b4c1c92b0955","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":118,"box":{"x":70,"y":75,"width":824,"height":11}},{"id":"2ec1d5dd-add9-42ab-aa36-f829c278ae2e","block_type":"box","text":"If deemed advisable as a matter of investment strategy, a Fund may dispose of or renegotiate a commitment","page_number":118,"box":{"x":102,"y":98,"width":776,"height":11}},{"id":"11f45c65-a8fd-4175-8d3c-66cd95bc9765","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":118,"box":{"x":69,"y":113,"width":795,"height":11}},{"id":"849163b5-507a-47e4-bfc9-d99d8f504061","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":118,"box":{"x":69,"y":128,"width":799,"height":11}},{"id":"dcc45b9c-34c1-4f26-9fc0-cc0ba900fb85","block_type":"box","text":"When a Fund engages in when-issued, TBA or forward commitment transactions, it relies on the other party to","page_number":118,"box":{"x":101,"y":150,"width":784,"height":12}},{"id":"45b32b9c-833b-432c-b93f-e9ed7a38d33c","block_type":"box","text":"consummate the trade. Failure of such party to do so may result in the Fund’s incurring a loss or missing an","page_number":118,"box":{"x":69,"y":166,"width":772,"height":11}},{"id":"bd800b05-41a8-4640-b5dc-3caceed41847","block_type":"box","text":"opportunity to obtain a price considered to be advantageous.","page_number":118,"box":{"x":69,"y":181,"width":434,"height":11}},{"id":"7b5629be-b78a-4685-9070-63d1c0d10da0","block_type":"box","text":"The market value of the securities underlying a commitment to purchase securities, and any subsequent","page_number":118,"box":{"x":101,"y":203,"width":745,"height":12}},{"id":"dd391691-181e-4296-bb97-d8fd3131bd77","block_type":"box","text":"fluctuations in their market value, is taken into account when determining the market value of a Fund starting on the","page_number":118,"box":{"x":68,"y":218,"width":831,"height":12}},{"id":"196c6fc3-6b3f-483f-8366-b9bcb5665419","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":118,"box":{"x":69,"y":234,"width":823,"height":11}},{"id":"8aac0737-20de-4af3-8145-a87c1d80fad0","block_type":"box","text":"to purchase until they are paid for and delivered on the settlement date.","page_number":118,"box":{"x":68,"y":249,"width":514,"height":11}},{"id":"b9e95a92-4e41-425f-8d43-64a0b9dfd022","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":118,"box":{"x":102,"y":271,"width":759,"height":12}},{"id":"e346dea5-6273-4dd0-9158-013cdf57caa1","block_type":"box","text":"securities (","page_number":118,"box":{"x":69,"y":287,"width":78,"height":11}},{"id":"28fd1d88-878f-47cc-8b4d-2729ea693d35","block_type":"box","text":"e.g.","page_number":118,"box":{"x":148,"y":288,"width":25,"height":10}},{"id":"9ddfbe1a-c626-4955-af87-4927d9a2e3e7","block_type":"box","text":", firm and standby commitments, including TBA commitments, and dollar rolls) and non-standard","page_number":118,"box":{"x":176,"y":286,"width":686,"height":12}},{"id":"14681bbb-988f-4b1f-ab42-61dea89a8ea5","block_type":"box","text":"settlement cycle securities notwithstanding the limitation on the issuance of senior securities in Section 18 of the","page_number":118,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"1274bb4c-3392-4b5c-9c20-26fc80cc34ea","block_type":"box","text":"Investment Company Act, provided that the Fund intends to physically settle the transaction and the transaction will","page_number":118,"box":{"x":70,"y":317,"width":822,"height":11}},{"id":"80b36af5-dd11-42a8-a61e-e3ca5a8c532f","block_type":"box","text":"settle within 35 days of its trade date (the “Delayed-Settlement Securities Provision”). If a when-issued, forward","page_number":118,"box":{"x":69,"y":332,"width":802,"height":11}},{"id":"f9589ba7-9086-4d35-906e-6767622db208","block_type":"box","text":"settling or non-standard settlement cycle security does not satisfy the Delayed-Settlement Securities Provision, then","page_number":118,"box":{"x":69,"y":347,"width":826,"height":11}},{"id":"f00bf766-48be-4c90-b87b-910b37401823","block_type":"box","text":"it is treated as a Derivatives Transaction under Rule 18f-4. See “—Derivatives — Regulation of Derivatives — Rule","page_number":118,"box":{"x":70,"y":362,"width":816,"height":11}},{"id":"11a0d9a7-9805-41bd-a1e0-01d02dea6e4d","block_type":"box","text":"18f-4 under the Investment Company Act” above.","page_number":118,"box":{"x":70,"y":377,"width":349,"height":11}},{"id":"fe8599fc-71cd-44af-a509-80b61a2fa99b","block_type":"box","text":"Regulations adopted by global prudential regulators require certain bank-regulated counterparties and certain of","page_number":118,"box":{"x":102,"y":400,"width":800,"height":11}},{"id":"712647b4-d769-43f1-a11c-4f976e76d5c6","block_type":"box","text":"their affiliates to include in certain financial contracts, including many agreements with respect to when-issued, TBA","page_number":118,"box":{"x":68,"y":415,"width":829,"height":11}},{"id":"07488f83-4e34-4c00-8949-a67b8cfc9ae3","block_type":"box","text":"and forward commitment transactions, terms that delay or restrict the rights of counterparties, such as a Fund, to","page_number":118,"box":{"x":69,"y":430,"width":814,"height":11}},{"id":"67110f50-770c-4b27-be7c-3e2ebf05f638","block_type":"box","text":"terminate such agreements, foreclose upon collateral, exercise other default rights or restrict transfers of credit","page_number":118,"box":{"x":68,"y":445,"width":799,"height":12}},{"id":"eba64879-0b15-475f-8408-72eff76dfea6","block_type":"box","text":"support in the event that the counterparty and/or its affiliates are subject to certain types of resolution or insolvency","page_number":118,"box":{"x":69,"y":460,"width":836,"height":12}},{"id":"0964a785-702a-497e-9dd8-2a2818df14f5","block_type":"box","text":"proceedings. It is possible that these requirements, as well as potential additional government regulation and other","page_number":118,"box":{"x":70,"y":476,"width":824,"height":11}},{"id":"b61eddee-cf2c-41c3-a2e6-9e247c69fa37","block_type":"box","text":"developments in the market, could adversely affect a Fund’s ability to terminate existing agreements with respect to","page_number":118,"box":{"x":69,"y":491,"width":829,"height":11}},{"id":"57e4be31-5d5d-41f9-a471-9c7e7c7f91eb","block_type":"box","text":"these transactions or to realize amounts to be received under such agreements.","page_number":118,"box":{"x":68,"y":506,"width":573,"height":11}},{"id":"62a77a3c-165e-46c5-92ed-a7fc232c1078","block_type":"box","text":"Yields and Ratings.","page_number":118,"box":{"x":103,"y":529,"width":139,"height":11}},{"id":"9da4ffcf-9505-4e4a-a6fe-460d36f6c3de","block_type":"box","text":"The yields on certain obligations are dependent on a variety of factors, including general","page_number":118,"box":{"x":247,"y":528,"width":628,"height":12}},{"id":"72a11b27-1311-47f1-aa64-57b83a5f1026","block_type":"box","text":"market conditions, conditions in the particular market for the obligation, the financial condition of the issuer, the size","page_number":118,"box":{"x":69,"y":543,"width":834,"height":12}},{"id":"f94b1a0f-814e-47bb-b692-32bd0514120b","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":118,"box":{"x":69,"y":559,"width":799,"height":11}},{"id":"55b5e814-b266-41e1-8596-36daca4fbfb2","block_type":"box","text":"represent their respective opinions as to the quality of the obligations they undertake to rate. Ratings, however, are","page_number":118,"box":{"x":69,"y":574,"width":824,"height":11}},{"id":"56162946-ab40-451c-bc0a-36021cdf4e20","block_type":"box","text":"general and are not absolute standards of quality. Consequently, obligations with the same rating, maturity and","page_number":118,"box":{"x":68,"y":589,"width":792,"height":11}},{"id":"ad5aa339-fcb4-40bf-9b7f-afa927e7acac","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":118,"box":{"x":70,"y":604,"width":827,"height":11}},{"id":"98c0751c-c975-4fbc-8ffa-7144cfc62f0f","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":118,"box":{"x":69,"y":619,"width":786,"height":11}},{"id":"ddc4e7d9-e89e-46be-bc71-deb5e83b6852","block_type":"box","text":"continue to hold the security.","page_number":118,"box":{"x":69,"y":634,"width":204,"height":11}},{"id":"6fc05ffc-b0d3-41e0-91ee-2a682781c780","block_type":"box","text":"Zero Coupon Securities.","page_number":118,"box":{"x":102,"y":657,"width":175,"height":11}},{"id":"58615f1d-2463-43ce-bba9-6d87c7271407","block_type":"box","text":"Zero coupon securities are securities that are sold at a discount to par value and do","page_number":118,"box":{"x":283,"y":657,"width":601,"height":11}},{"id":"08d903a7-8e96-40dd-8c4b-838bed6070f4","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":118,"box":{"x":69,"y":672,"width":837,"height":11}},{"id":"1bb59916-786e-4434-99fc-328806d895f4","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":118,"box":{"x":69,"y":687,"width":822,"height":11}},{"id":"40accae7-7bd7-4cf7-9b50-984b8cf450fe","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":118,"box":{"x":68,"y":702,"width":814,"height":11}},{"id":"27733364-f103-42b9-b847-bacabd456c46","block_type":"box","text":"security.","page_number":118,"box":{"x":69,"y":718,"width":57,"height":11}},{"id":"bde6c47e-9a72-49e3-b2e5-3f8aa171a042","block_type":"box","text":"While interest payments are not made on such securities, holders of such securities are deemed to have","page_number":118,"box":{"x":101,"y":740,"width":749,"height":11}},{"id":"f5bff09a-ff55-4760-8677-405a7831f9a9","block_type":"box","text":"received income (“phantom income”) annually, notwithstanding that cash may not be received currently. The effect of","page_number":118,"box":{"x":69,"y":755,"width":835,"height":11}},{"id":"ce9475ae-b027-4f5b-8bf8-796112d158cf","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":118,"box":{"x":69,"y":770,"width":833,"height":12}},{"id":"2879df4a-e6ce-40ae-b5fe-521f47511a03","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":118,"box":{"x":70,"y":785,"width":836,"height":12}},{"id":"6c158ef7-d1a2-4c0b-bbb8-78d7c39ec9c5","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":118,"box":{"x":69,"y":801,"width":804,"height":11}},{"id":"4f2fd0f9-1dd1-41c6-9de7-a6f198d7b632","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":118,"box":{"x":68,"y":816,"width":824,"height":11}},{"id":"a8744cae-82ef-416d-adbf-7854236e9024","block_type":"box","text":"future. For this reason, some of these securities may be subject to substantially greater price fluctuations during","page_number":118,"box":{"x":68,"y":831,"width":805,"height":11}},{"id":"ad471228-0e0c-4ac1-a836-71866227f729","block_type":"box","text":"periods of changing market interest rates than are comparable securities that pay interest currently. Longer term zero","page_number":118,"box":{"x":70,"y":846,"width":837,"height":11}},{"id":"35c1be1d-fec0-46f5-9b54-abbd9bb50ea1","block_type":"box","text":"coupon bonds are more exposed to interest rate risk than shorter term zero coupon bonds. These investments","page_number":118,"box":{"x":69,"y":861,"width":791,"height":11}},{"id":"b8114d41-7259-4ec1-b1b5-94d95e8ba634","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":118,"box":{"x":69,"y":876,"width":800,"height":11}},{"id":"b15b3661-e28a-4465-ac10-0c23ecad423d","block_type":"box","text":"attract investors who are willing to defer receipt of cash.","page_number":118,"box":{"x":69,"y":891,"width":400,"height":12}},{"id":"a12fc2ae-c8a9-481a-8241-f2df1e59e122","block_type":"box","text":"II-80","page_number":118,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2be51638-1bed-47ed-95fc-4005532170fa","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":118,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ae439dcf-f1c4-45a4-bb56-7cfc998d8b42","block_type":"box","text":"A Fund accrues income with respect to these securities for U.S. federal income tax and accounting purposes","page_number":119,"box":{"x":101,"y":45,"width":775,"height":11}},{"id":"78ecfe41-6621-4195-8096-5e99d5384513","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":119,"box":{"x":70,"y":60,"width":827,"height":11}},{"id":"2151b06e-2076-460b-a21c-8a6cf4d29d4d","block_type":"box","text":"liquidity in the event of adverse market conditions than comparably rated securities that pay cash interest at regular","page_number":119,"box":{"x":70,"y":75,"width":826,"height":11}},{"id":"c46c2d94-1a0a-4e2f-853c-357928b30916","block_type":"box","text":"intervals.","page_number":119,"box":{"x":70,"y":90,"width":64,"height":9}},{"id":"68a1eefa-4e8b-462b-850b-da25e5d92f98","block_type":"box","text":"Further, to maintain its qualification for pass-through treatment under the U.S. federal tax laws, a Fund is","page_number":119,"box":{"x":102,"y":113,"width":749,"height":11}},{"id":"c7c9b5e2-bdfa-4196-8847-b79ee88e92c4","block_type":"box","text":"required to distribute income to its shareholders and, consequently, may have to dispose of other, more liquid","page_number":119,"box":{"x":69,"y":128,"width":784,"height":11}},{"id":"57215882-3c96-4957-9355-c4b154a66fc2","block_type":"box","text":"portfolio securities under disadvantageous circumstances or may have to leverage itself by borrowing in order to","page_number":119,"box":{"x":70,"y":143,"width":799,"height":11}},{"id":"813f78a6-b638-4302-9f69-a3f28742e7db","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":119,"box":{"x":68,"y":158,"width":799,"height":11}},{"id":"76280927-adb1-4b6b-ab3d-6bd35f2b1715","block_type":"box","text":"exposure to zero coupon securities.","page_number":119,"box":{"x":69,"y":173,"width":253,"height":11}},{"id":"93e4eebf-61f9-4b37-8e11-bb1dec9dc777","block_type":"box","text":"In addition to the above-described risks, there are certain other risks related to investing in zero coupon","page_number":119,"box":{"x":102,"y":196,"width":740,"height":11}},{"id":"71fd73c8-9901-48d5-80f3-0b5c548f5f66","block_type":"box","text":"securities. During a period of severe market conditions, the market for such securities may become even less liquid.","page_number":119,"box":{"x":69,"y":211,"width":829,"height":11}},{"id":"20b3a3c9-c603-43d5-89da-c04006b82539","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":119,"box":{"x":70,"y":226,"width":829,"height":11}},{"id":"c9982a14-8f7f-49fe-b2c1-9e4aa8c5c00c","block_type":"box","text":"risks, including credit risk, will increase during the time these securities are held in the Fund’s portfolio.","page_number":119,"box":{"x":69,"y":241,"width":741,"height":11}},{"id":"dda64d16-f2c2-45e2-8da0-5018bbd36087","block_type":"box","text":"Suitability. (All Funds)","page_number":119,"box":{"x":101,"y":264,"width":161,"height":11}},{"id":"31d3bd44-25db-4323-b316-c9abf25574c4","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":119,"box":{"x":101,"y":286,"width":793,"height":12}},{"id":"406e6f01-8ce4-4b00-acf7-14a359458839","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":119,"box":{"x":68,"y":302,"width":811,"height":11}},{"id":"e4cd9aca-f451-49cf-a987-63bc95ec5523","block_type":"box","text":"investment program. The suitability for any particular investor of a purchase of shares in a Fund will depend upon,","page_number":119,"box":{"x":70,"y":317,"width":810,"height":11}},{"id":"468f506c-d42d-4e9d-9548-964157f677c4","block_type":"box","text":"among other things, such investor’s investment objectives and such investor’s ability to accept the risks associated","page_number":119,"box":{"x":69,"y":332,"width":826,"height":11}},{"id":"ab49afdb-ca93-4d60-a0bb-e8efd10a7c8d","block_type":"box","text":"with investing in securities, including the risk of loss of principal.","page_number":119,"box":{"x":68,"y":347,"width":460,"height":11}},{"id":"6a1149b7-ec83-464e-906a-c9e826732413","block_type":"box","text":"Investment Restrictions. (All Funds)","page_number":119,"box":{"x":102,"y":370,"width":264,"height":11}},{"id":"cee20b38-e2cd-43f5-9fc9-e914213aa378","block_type":"box","text":"See “Investment Restrictions” or “Investment Policies,” as applicable in each Fund’s SAI for the specific","page_number":119,"box":{"x":102,"y":392,"width":745,"height":11}},{"id":"66d4e12e-54e2-4293-96ac-c896f4e20dc4","block_type":"box","text":"fundamental and non-fundamental investment restrictions adopted by each Fund. In addition to those investment","page_number":119,"box":{"x":68,"y":407,"width":807,"height":12}},{"id":"43c48a23-3072-4714-8d6e-fb05eb8a06f1","block_type":"box","text":"restrictions, each Fund is also subject to the restrictions discussed below.","page_number":119,"box":{"x":69,"y":423,"width":528,"height":11}},{"id":"92fcd540-8a0b-4e7e-ac01-228d78127036","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":119,"box":{"x":102,"y":445,"width":735,"height":12}},{"id":"c1086d6d-35fe-4e2d-b2d1-d4fc792c66c3","block_type":"box","text":"company” for purposes of the Code. See “Dividends and Taxes — Taxes” or “Taxes.” To qualify, among other","page_number":119,"box":{"x":69,"y":460,"width":775,"height":12}},{"id":"b8009963-1543-42fd-a4f0-1d5c13ec8f20","block_type":"box","text":"requirements, each Fund will limit its investments so that, at the close of each quarter of the taxable year, (i) at least","page_number":119,"box":{"x":69,"y":475,"width":837,"height":12}},{"id":"20674884-dba0-4485-83be-8f0822f20827","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":119,"box":{"x":69,"y":491,"width":799,"height":11}},{"id":"777aecf1-82d8-4b27-a69b-e56ef8e4c8a4","block_type":"box","text":"companies, U.S. Government Securities and other securities, with such other securities limited, in respect of any one","page_number":119,"box":{"x":69,"y":506,"width":837,"height":11}},{"id":"569169ff-0e4e-491d-b035-92d6c60bbbf5","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":119,"box":{"x":70,"y":521,"width":825,"height":11}},{"id":"779dbade-e407-4234-9baa-16f1506e8ee1","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":119,"box":{"x":68,"y":536,"width":802,"height":11}},{"id":"4b4462b6-bd17-4774-ab54-f72e4f0f592d","block_type":"box","text":"(other than U.S. Government Securities or securities of other regulated investment companies) of any one issuer, any","page_number":119,"box":{"x":69,"y":551,"width":837,"height":11}},{"id":"ce719c71-2aa4-4bbb-b48f-3fef824c2ba9","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":119,"box":{"x":68,"y":566,"width":819,"height":11}},{"id":"7ddb0287-d25a-4ed9-b414-6b4064c96a32","block_type":"box","text":"businesses or related trades or businesses or in the securities of one or more qualified publicly traded partnerships","page_number":119,"box":{"x":69,"y":581,"width":828,"height":11}},{"id":"9eb310b8-1c43-4efe-9ce3-1f30e999d8c7","block_type":"box","text":"(","page_number":119,"box":{"x":69,"y":597,"width":3,"height":10}},{"id":"be86114b-d6a8-4a32-ae6b-7f2663b647f4","block_type":"box","text":"i.e.","page_number":119,"box":{"x":74,"y":597,"width":21,"height":8}},{"id":"19b97ffc-95e1-4b5a-9bda-e1f6fc1934aa","block_type":"box","text":", partnerships that are traded on an established securities market or tradable on a secondary market, other than","page_number":119,"box":{"x":97,"y":597,"width":806,"height":11}},{"id":"667814bd-ad45-411e-89e2-e48f0e0ab946","block_type":"box","text":"partnerships that derive 90% of their income from interest, dividends, capital gains and other traditionally permitted","page_number":119,"box":{"x":70,"y":612,"width":824,"height":11}},{"id":"a3568293-41c3-48d8-b9f5-3d513e664030","block_type":"box","text":"mutual fund income). For purposes of this restriction, the Municipal Funds generally will regard each state and each","page_number":119,"box":{"x":69,"y":627,"width":824,"height":11}},{"id":"7463bcf6-6033-4d59-b02e-f458d36d317d","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":119,"box":{"x":69,"y":642,"width":838,"height":11}},{"id":"68569831-ca33-423f-9409-564bd5f31d66","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":119,"box":{"x":69,"y":657,"width":815,"height":11}},{"id":"a5024f37-a520-4ebe-a7e4-dbea587fa31c","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":119,"box":{"x":69,"y":672,"width":781,"height":11}},{"id":"45aed60b-4aa8-4869-8bac-d57b72cf85ea","block_type":"box","text":"government entity, then the entity with the ultimate responsibility for the payment of interest and principal may be","page_number":119,"box":{"x":68,"y":687,"width":810,"height":11}},{"id":"e65887b6-3c48-4ea6-8b0d-fada7ccf4a27","block_type":"box","text":"regarded as the sole issuer.","page_number":119,"box":{"x":69,"y":703,"width":198,"height":11}},{"id":"6f7cac3b-ac85-42c1-8126-1ecb43c13b2b","block_type":"box","text":"Foreign government securities (unlike U.S. Government Securities) are not exempt from the 5%, 10% and 25%","page_number":119,"box":{"x":102,"y":725,"width":784,"height":11}},{"id":"f6ebb173-5685-46ee-9a52-955fb1cc6d9f","block_type":"box","text":"diversification requirements of the Code discussed above and the securities of each foreign government issuer are","page_number":119,"box":{"x":69,"y":740,"width":819,"height":11}},{"id":"dba6956d-7ce2-4a13-a643-c3091848d12e","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":119,"box":{"x":69,"y":755,"width":811,"height":11}},{"id":"38638f7f-0c4c-4a9e-bf72-5e7f7dd3844a","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":119,"box":{"x":70,"y":770,"width":747,"height":12}},{"id":"9eb22448-efa7-4804-8ca9-005b240c2ee1","block_type":"box","text":"“diversified” under the Investment Company Act must satisfy the foregoing 5% and 10% requirements with respect to","page_number":119,"box":{"x":70,"y":785,"width":834,"height":12}},{"id":"891e6086-5ae6-4df3-beb0-37565aa3cf3b","block_type":"box","text":"75% of its total assets.","page_number":119,"box":{"x":69,"y":801,"width":165,"height":9}},{"id":"4d997666-6927-4972-a7ca-dbddd2b2a958","block_type":"box","text":"II-81","page_number":119,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"eebb8b6f-86bc-4cb6-99a5-dd25961350ec","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":119,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"02742e7d-276c-4fd4-836c-682258a3181d","block_type":"box","text":"MANAGEMENT AND OTHER SERVICE ARRANGEMENTS","page_number":120,"box":{"x":268,"y":45,"width":442,"height":10}},{"id":"edc35d12-047a-4bb4-abb3-683665232345","block_type":"box","text":"Directors and Officers","page_number":120,"box":{"x":69,"y":76,"width":159,"height":8}},{"id":"42045bfd-d572-4577-880e-cd639ca7c79f","block_type":"box","text":"See “Information on Directors and Officers, ‘—Biographical Information,’ ‘— Share Ownership’ and ‘—","page_number":120,"box":{"x":102,"y":98,"width":733,"height":11}},{"id":"a5753abf-ebc8-4458-b887-55f87a76e55c","block_type":"box","text":"Compensation of Directors’” or “Information on Trustees and Officers, ‘—Biographical Information,’ ‘— Share","page_number":120,"box":{"x":69,"y":113,"width":783,"height":12}},{"id":"27565077-d8e0-434c-9f06-eb905ddf36e0","block_type":"box","text":"Ownership’ and ‘— Compensation of Trustees’,” as applicable, in Part I of each Fund’s SAI for biographical and","page_number":120,"box":{"x":69,"y":128,"width":795,"height":12}},{"id":"28907c61-bf06-4028-b2f2-a595e40001db","block_type":"box","text":"certain other information relating to the Directors and officers of your Fund, including Directors’ compensation.","page_number":120,"box":{"x":69,"y":143,"width":789,"height":12}},{"id":"00d4b6c0-441e-4a3e-803f-7d0c1b49044b","block_type":"box","text":"Management Arrangements","page_number":120,"box":{"x":69,"y":174,"width":202,"height":11}},{"id":"10e209b9-088e-419e-98e7-08812f1ecea0","block_type":"box","text":"Management Services.","page_number":120,"box":{"x":102,"y":197,"width":162,"height":11}},{"id":"4b097fbb-8ab6-4167-a2bb-6e11cf707376","block_type":"box","text":"The Manager provides each Fund with investment advisory and management services.","page_number":120,"box":{"x":270,"y":197,"width":615,"height":11}},{"id":"b7cb1dec-9669-4238-83e2-87587449a136","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":120,"box":{"x":69,"y":212,"width":836,"height":11}},{"id":"37b42486-d45e-4ab1-8d27-5fb7885cf324","block_type":"box","text":"portfolio and reviews the Fund’s holdings in light of its own research analysis and that from other relevant sources.","page_number":120,"box":{"x":70,"y":227,"width":820,"height":11}},{"id":"1091cd3c-acb9-49ee-b918-eef47f809d1b","block_type":"box","text":"The responsibility for making decisions to buy, sell or hold a particular security rests with the Manager. The Manager","page_number":120,"box":{"x":68,"y":242,"width":832,"height":11}},{"id":"15b67938-dccb-48b9-afdb-9d16054d4a30","block_type":"box","text":"performs certain of the other administrative services and provides all the office space, facilities, equipment and","page_number":120,"box":{"x":70,"y":257,"width":801,"height":11}},{"id":"33daa8f7-f1ca-4c3b-b1e3-5e9ad75482e8","block_type":"box","text":"necessary personnel for management of each Fund.","page_number":120,"box":{"x":69,"y":272,"width":370,"height":11}},{"id":"607ff994-94ba-4a7f-895c-136160fd05ea","block_type":"box","text":"Each Feeder Fund invests all or a portion of its assets in shares of a Master Portfolio. To the extent a Feeder","page_number":120,"box":{"x":102,"y":295,"width":778,"height":11}},{"id":"8602ea1e-bc4d-4fd2-aa82-e5f0c2bc6ded","block_type":"box","text":"Fund invests all of its assets in a Master Portfolio, it does not invest directly in portfolio securities and does not","page_number":120,"box":{"x":70,"y":310,"width":800,"height":11}},{"id":"ec70f6f4-4d3e-48ee-b0fc-31836ededf5e","block_type":"box","text":"require management services. For such Feeder Funds, portfolio management occurs at the Master Portfolio level.","page_number":120,"box":{"x":69,"y":325,"width":810,"height":11}},{"id":"5c54f113-82d8-4e28-ae8d-955c4990cb49","block_type":"box","text":"Management Fee.","page_number":120,"box":{"x":102,"y":348,"width":126,"height":11}},{"id":"cfdcc697-46f8-4439-b13b-318e3d548b32","block_type":"box","text":"Each Fund has entered into a Management Agreement with the Manager pursuant to which","page_number":120,"box":{"x":235,"y":348,"width":646,"height":11}},{"id":"ac253950-d381-4351-913f-02cfe68c87e1","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":120,"box":{"x":68,"y":363,"width":841,"height":11}},{"id":"f13560e8-1dd3-41c1-b39d-f33cf1c27576","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":120,"box":{"x":69,"y":378,"width":833,"height":11}},{"id":"1d155acc-09ef-40c2-8186-8e40426b7702","block_type":"box","text":"fiscal years or other applicable periods, see “Management, Advisory and Other Service Arrangements —","page_number":120,"box":{"x":68,"y":393,"width":746,"height":11}},{"id":"4d1519a4-7025-40ce-a6a0-e713275cf4c1","block_type":"box","text":"Management Agreement” or “Management and Advisory Arrangements,” as applicable, in Part I of each Fund’s SAI.","page_number":120,"box":{"x":70,"y":408,"width":825,"height":11}},{"id":"1f69c7dd-1075-4d6e-b88d-1c8145f29e47","block_type":"box","text":"For Funds that do not have an administrator, each Management Agreement obligates the Manager to provide","page_number":120,"box":{"x":102,"y":431,"width":774,"height":11}},{"id":"4ef1cdb0-5eb8-40ed-8bdb-53e1f5382231","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":120,"box":{"x":69,"y":446,"width":826,"height":11}},{"id":"3d932286-d76a-47fc-98b6-455a3e7bd7e4","block_type":"box","text":"in connection with investment and economic research, trading and investment management of the Fund, as well as","page_number":120,"box":{"x":70,"y":461,"width":820,"height":11}},{"id":"37175039-bf7f-4917-b9df-600b89f03603","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":120,"box":{"x":68,"y":476,"width":797,"height":11}},{"id":"a5508f45-21da-454a-86d4-876c724adc63","block_type":"box","text":"incurred in the operation of that Fund, including among other things: taxes; expenses for legal and auditing services;","page_number":120,"box":{"x":70,"y":491,"width":830,"height":12}},{"id":"49aa6352-353b-4888-83a4-60e25e4824c1","block_type":"box","text":"costs of preparing, printing and mailing proxies, shareholder reports, prospectuses and statements of additional","page_number":120,"box":{"x":69,"y":506,"width":802,"height":12}},{"id":"9ab882e8-4008-44fb-b66b-6f63774d60c1","block_type":"box","text":"information, except to the extent paid by BlackRock Investments, LLC (“BRIL” or the “Distributor”); charges of the","page_number":120,"box":{"x":70,"y":521,"width":809,"height":12}},{"id":"a019179a-7b5e-415d-a06a-0a05e1eede07","block_type":"box","text":"custodian and sub-custodian, and the transfer agent; expenses of redemption of shares; Commission fees; expenses","page_number":120,"box":{"x":69,"y":537,"width":838,"height":11}},{"id":"2afd3da4-7c63-4b0b-85d5-cc8c64c4bd0f","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":120,"box":{"x":69,"y":552,"width":830,"height":11}},{"id":"93e9ccef-86f6-4868-9814-00e34752fbec","block_type":"box","text":"persons of a Fund as defined in the Investment Company Act; accounting and pricing costs (including the daily","page_number":120,"box":{"x":70,"y":567,"width":784,"height":11}},{"id":"1ddda84c-ed87-4c34-be32-67479e3149fb","block_type":"box","text":"calculations of NAV); insurance; interest; brokerage costs; litigation and other extraordinary or non-recurring","page_number":120,"box":{"x":69,"y":582,"width":767,"height":11}},{"id":"80895d94-890f-4a94-bc96-e0c984e7696f","block_type":"box","text":"expenses; and other expenses properly payable by the Fund. Certain accounting services are provided to each Fund","page_number":120,"box":{"x":69,"y":597,"width":825,"height":11}},{"id":"8e7c332f-3b60-4c81-b7f7-967623fb0614","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":120,"box":{"x":69,"y":612,"width":827,"height":11}},{"id":"df3a222d-d58e-4246-8bce-00e30a3597ad","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":120,"box":{"x":69,"y":627,"width":814,"height":12}},{"id":"92676302-08db-4d47-8d76-1941e2b999d9","block_type":"box","text":"each Fund. Each Fund pays a fee for these services. The Distributor pays certain promotional expenses of the Funds","page_number":120,"box":{"x":69,"y":642,"width":832,"height":12}},{"id":"12ff9b6b-fd0c-4ec7-a714-07810f8947cc","block_type":"box","text":"incurred in connection with the offering of shares of the Funds. Certain expenses are financed by each Fund pursuant","page_number":120,"box":{"x":70,"y":658,"width":839,"height":11}},{"id":"c84c0f9c-d5ef-46f7-949c-60e08a144ede","block_type":"box","text":"to distribution plans in compliance with Rule 12b-1 under the Investment Company Act. See “Purchase of Shares —","page_number":120,"box":{"x":68,"y":673,"width":828,"height":11}},{"id":"9d1405ec-45be-4e62-9197-fa4fdbf46b62","block_type":"box","text":"Distribution and/or Shareholder Servicing Plans.”","page_number":120,"box":{"x":70,"y":688,"width":350,"height":11}},{"id":"f2a7e414-0166-4b66-b21e-99fac27327d5","block_type":"box","text":"Sub-Advisory Fee.","page_number":120,"box":{"x":102,"y":711,"width":124,"height":11}},{"id":"c45f4633-9770-4943-960f-bb38a1596ff8","block_type":"box","text":"The Manager of certain Funds has entered into one or more sub-advisory agreements (the","page_number":120,"box":{"x":232,"y":710,"width":643,"height":12}},{"id":"2ce50aeb-2c37-451e-8a93-8088c178164d","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":120,"box":{"x":70,"y":726,"width":839,"height":11}},{"id":"fc0103e2-867a-48fa-825e-9a638b85bf61","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":120,"box":{"x":68,"y":741,"width":830,"height":11}},{"id":"794a51ac-53cb-437c-8076-a6d951cf32c0","block_type":"box","text":"Organization of the Manager.","page_number":120,"box":{"x":102,"y":763,"width":204,"height":12}},{"id":"9de19475-7228-4085-ae29-93222336107f","block_type":"box","text":"BlackRock Advisors, LLC is a Delaware limited liability company and BlackRock","page_number":120,"box":{"x":313,"y":763,"width":560,"height":12}},{"id":"8a35ac75-543e-442c-89cd-55971a6cf5d8","block_type":"box","text":"Fund Advisors is a California corporation. Each Manager is an indirect, majority-owned subsidiary of BlackRock, Inc.","page_number":120,"box":{"x":70,"y":778,"width":819,"height":12}},{"id":"2cc5a5f9-69ca-4a5c-9881-1a579ee65154","block_type":"box","text":"BlackRock, Inc., through its subsidiaries and divisions, provides (i) investment management services to individuals","page_number":120,"box":{"x":70,"y":794,"width":817,"height":11}},{"id":"6e915ef9-9b17-46cd-876e-0ef4bfc45c3d","block_type":"box","text":"and institutional investors through separate account management, non-discretionary advisory programs and","page_number":120,"box":{"x":69,"y":809,"width":768,"height":11}},{"id":"b91c618f-b64f-494d-a054-e5d48d100e38","block_type":"box","text":"commingled investment vehicles; (ii) risk management services, investment accounting and trade processing tools;","page_number":120,"box":{"x":69,"y":824,"width":821,"height":11}},{"id":"22fa1413-fae6-410b-a16a-65da971625c9","block_type":"box","text":"(iii) transition management services, and (iv) securities lending services.","page_number":120,"box":{"x":69,"y":839,"width":517,"height":11}},{"id":"a0bdf549-9413-441a-9d96-76a75734743f","block_type":"box","text":"Duration and Termination.","page_number":120,"box":{"x":102,"y":862,"width":182,"height":9}},{"id":"8fb69fdb-11f5-4eb4-bc79-d42350722994","block_type":"box","text":"Unless earlier terminated as described below, each Management Agreement and each","page_number":120,"box":{"x":292,"y":862,"width":613,"height":11}},{"id":"55a161d4-654d-4382-90e3-a21abd84463e","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":120,"box":{"x":69,"y":877,"width":835,"height":11}},{"id":"a2290646-7687-4509-83f7-193e0373eefd","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":120,"box":{"x":69,"y":892,"width":803,"height":11}},{"id":"6fade789-f334-478f-bf0d-3efa6b0ba44c","block_type":"box","text":"(b) by a majority of the Directors of the Fund who are not parties to such agreement or interested persons (as defined","page_number":120,"box":{"x":69,"y":907,"width":839,"height":11}},{"id":"c46d1cd4-69a8-4178-a7f9-53fb4757a7e7","block_type":"box","text":"II-82","page_number":120,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e2a889f6-1723-40d9-86f1-43b0cfd38aaa","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":120,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"cd7698fe-e1bc-421a-9ff3-cab1a2bb31f6","block_type":"box","text":"in the Investment Company Act) of any such party. Each Management Agreement automatically terminates on","page_number":121,"box":{"x":70,"y":45,"width":778,"height":11}},{"id":"0318670f-17a8-4520-898b-f08d670bb69f","block_type":"box","text":"assignment and may be terminated without penalty on 60 days’ written notice at the option of either party thereto or","page_number":121,"box":{"x":69,"y":60,"width":832,"height":11}},{"id":"56f8dcf6-818e-400a-8772-045332d7589c","block_type":"box","text":"by the vote of the shareholders of the applicable Fund.","page_number":121,"box":{"x":69,"y":75,"width":388,"height":11}},{"id":"32c67e6f-5ee8-44bd-b4aa-cb0b30322e6d","block_type":"box","text":"Other Service Arrangements","page_number":121,"box":{"x":69,"y":105,"width":205,"height":11}},{"id":"5958cf8e-e5e2-4801-abc3-f9648eec58fa","block_type":"box","text":"Administrative Services and Administrative Fee.","page_number":121,"box":{"x":101,"y":128,"width":338,"height":9}},{"id":"63b32202-4a96-4e1d-b37c-1acf78ced8fa","block_type":"box","text":"Certain Funds have entered into an administration agreement","page_number":121,"box":{"x":446,"y":128,"width":439,"height":11}},{"id":"0d239cc4-09be-4870-a771-de1e16dc411c","block_type":"box","text":"(the “Administration Agreement”) with an administrator identified in the Fund’s Prospectus and Part I of the Fund’s","page_number":121,"box":{"x":69,"y":143,"width":818,"height":11}},{"id":"12d8240e-d621-4163-9395-55503bca9783","block_type":"box","text":"SAI (each an “Administrator”). For its services to a Fund, the Administrator receives monthly compensation at the","page_number":121,"box":{"x":69,"y":158,"width":808,"height":11}},{"id":"27443dbc-7c19-4f74-9a7f-a702f931123d","block_type":"box","text":"annual rate set forth in each applicable Fund’s Prospectus. For information regarding any administrative fees paid by","page_number":121,"box":{"x":69,"y":173,"width":833,"height":11}},{"id":"6a993296-520b-4de7-b662-a303614a0fca","block_type":"box","text":"your Fund to the Administrator for the periods indicated, see “Management, Advisory and Other Service","page_number":121,"box":{"x":68,"y":188,"width":738,"height":12}},{"id":"a4a8ab1c-96cc-403b-bade-68c2420d0429","block_type":"box","text":"Arrangements — Administration Agreement” or “Management and Advisory Arrangements,” as applicable, in Part I of","page_number":121,"box":{"x":68,"y":203,"width":839,"height":12}},{"id":"6c9fe730-e250-49cb-89d7-2b12af499c88","block_type":"box","text":"that Fund’s SAI.","page_number":121,"box":{"x":68,"y":219,"width":113,"height":8}},{"id":"6eb9295b-11c8-40d6-8672-fb7bd0a02614","block_type":"box","text":"For Funds that have an Administrator, the Administration Agreement obligates the Administrator to provide","page_number":121,"box":{"x":102,"y":241,"width":755,"height":11}},{"id":"132f9404-5800-4d96-a78d-0e301b66d271","block_type":"box","text":"certain administrative services to the Fund and to pay, or cause its affiliates to pay, for maintaining its staff and","page_number":121,"box":{"x":69,"y":256,"width":800,"height":12}},{"id":"ec22c545-9746-40a7-8d9d-0134477c46a7","block_type":"box","text":"personnel and to provide office space, facilities and necessary personnel for the Fund. Each Administrator is also","page_number":121,"box":{"x":70,"y":271,"width":809,"height":12}},{"id":"742099cd-930b-4896-a1d7-652ebc2b1a2b","block_type":"box","text":"obligated to pay, or cause its affiliates to pay, the fees of those officers and Directors of the Fund who are affiliated","page_number":121,"box":{"x":69,"y":286,"width":826,"height":12}},{"id":"02096079-d170-4146-a9c7-692685b39bd1","block_type":"box","text":"persons of the Administrator or any of its affiliates.","page_number":121,"box":{"x":70,"y":302,"width":362,"height":11}},{"id":"db9d0fb3-afcd-4dac-a557-513263db7b22","block_type":"box","text":"Duration and Termination of Administration Agreement.","page_number":121,"box":{"x":102,"y":324,"width":390,"height":12}},{"id":"6298036a-9b9b-4e35-853b-0c4fad10873f","block_type":"box","text":"Unless earlier terminated as described below, each","page_number":121,"box":{"x":499,"y":325,"width":364,"height":10}},{"id":"65ee5d09-53e2-4dba-a9ba-c6fe3e3a8728","block_type":"box","text":"Administration Agreement with BlackRock will continue for an initial two year period and from year to year if approved","page_number":121,"box":{"x":68,"y":339,"width":832,"height":12}},{"id":"948d7329-9c6c-4945-8eb9-46f2d8fc6bee","block_type":"box","text":"annually (a) by the Board of Directors of each applicable Fund or by a vote of a majority of the outstanding voting","page_number":121,"box":{"x":69,"y":355,"width":802,"height":11}},{"id":"2c603087-216e-4d32-b34c-e8a13927642f","block_type":"box","text":"securities of such Fund and (b) by a majority of the Directors of the Fund who are not parties to such contract or","page_number":121,"box":{"x":69,"y":370,"width":800,"height":11}},{"id":"2b8356bd-866d-462e-9cab-16336bb758cd","block_type":"box","text":"interested persons (as defined in the Investment Company Act) of any such party. Such contract is not assignable","page_number":121,"box":{"x":70,"y":385,"width":810,"height":11}},{"id":"5248cb87-f66e-4b73-955f-f6b5fd261d9b","block_type":"box","text":"and may be terminated without penalty on written notice at the option of either party thereto or by the vote of the","page_number":121,"box":{"x":69,"y":400,"width":805,"height":11}},{"id":"fad3cfe9-1b07-422d-afad-94e59ef9ae6a","block_type":"box","text":"shareholders of the Fund.","page_number":121,"box":{"x":69,"y":415,"width":181,"height":9}},{"id":"fe6c8b69-6549-4bb9-adcc-eac52ec92e76","block_type":"box","text":"Transfer Agency Services.","page_number":121,"box":{"x":103,"y":438,"width":180,"height":11}},{"id":"f595adce-c939-4fa2-9b3e-c174800bd2d8","block_type":"box","text":"BNY Mellon Investment Servicing (US) Inc. (in this capacity, the “Transfer Agent”), a","page_number":121,"box":{"x":291,"y":438,"width":595,"height":11}},{"id":"6de850d0-68f6-418b-a73e-f645e6c5a319","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":121,"box":{"x":69,"y":453,"width":816,"height":11}},{"id":"5edab281-733b-44d8-8213-d74534e0eee2","block_type":"box","text":"Agency, Dividend Disbursing Agency and Shareholder Servicing Agency Agreement (the “Transfer Agency Agreement”)","page_number":121,"box":{"x":68,"y":468,"width":833,"height":11}},{"id":"2ec4d07f-ca4a-4d72-899f-045aab1c8cd8","block_type":"box","text":"with the Funds. Pursuant to the Transfer Agency Agreement, the Transfer Agent is responsible for the issuance,","page_number":121,"box":{"x":68,"y":483,"width":792,"height":11}},{"id":"d6c36f67-3b48-4c1e-a9e2-bff67476f818","block_type":"box","text":"transfer and redemption of shares and the opening and maintenance of shareholder accounts. Each Fund pays the","page_number":121,"box":{"x":68,"y":498,"width":819,"height":11}},{"id":"51167c38-6fa8-4904-8bbe-6f86ca373067","block_type":"box","text":"Transfer Agent a fee for the services it receives based on the type of account and the level of services required. Each","page_number":121,"box":{"x":68,"y":513,"width":839,"height":12}},{"id":"d8feb80a-a34d-46e6-b8b9-9bb78dd18a0c","block_type":"box","text":"Fund reimburses the Transfer Agent’s reasonable out-of-pocket expenses and pays a fee of 0.10% of account assets","page_number":121,"box":{"x":70,"y":528,"width":831,"height":12}},{"id":"04f7154e-f8e1-4fca-b01c-ac4ba60f9353","block_type":"box","text":"for certain accounts that participate in certain fee-based programs sponsored by the Manager or its affiliates. For","page_number":121,"box":{"x":68,"y":543,"width":813,"height":12}},{"id":"967b406d-d38e-421f-8b8e-6c6d17631643","block_type":"box","text":"purposes of each Transfer Agency Agreement, the term “account” includes a shareholder account maintained directly","page_number":121,"box":{"x":70,"y":559,"width":836,"height":11}},{"id":"f92a6bdf-c9df-49c2-8502-fb4dd28eb469","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":121,"box":{"x":69,"y":574,"width":806,"height":11}},{"id":"dff01aa4-b6b2-4808-8c57-d3940f9e3153","block_type":"box","text":"class on a recordkeeping system.","page_number":121,"box":{"x":69,"y":589,"width":238,"height":11}},{"id":"3dc3b10b-683b-4e38-a627-ec20b1e3d624","block_type":"box","text":"Independent Registered Public Accounting Firm.","page_number":121,"box":{"x":102,"y":612,"width":338,"height":11}},{"id":"0b649685-cc1f-4c37-abab-e5bfcca1cb16","block_type":"box","text":"The Audit Committee of each Fund, the members of which are","page_number":121,"box":{"x":446,"y":612,"width":441,"height":10}},{"id":"823b3adc-b559-4656-b8de-ffaac25edb4e","block_type":"box","text":"non-interested Directors of the Fund, has selected an independent registered public accounting firm for that Fund that","page_number":121,"box":{"x":69,"y":627,"width":840,"height":11}},{"id":"6cc31193-0fbc-4f4d-a7fc-1daed8c65784","block_type":"box","text":"audits the Fund’s financial statements. Please see the inside back cover page of your Fund’s Prospectus and Part I","page_number":121,"box":{"x":69,"y":642,"width":823,"height":11}},{"id":"f7514286-dee6-42e7-b2e1-577eaf81f410","block_type":"box","text":"of this SAI for information on your Fund’s independent registered public accounting firm.","page_number":121,"box":{"x":69,"y":657,"width":627,"height":11}},{"id":"594c9730-b636-47a1-a74e-83e48affe687","block_type":"box","text":"Custodian Services.","page_number":121,"box":{"x":102,"y":680,"width":141,"height":9}},{"id":"f8147a7a-2de3-4abf-8065-e53b02acd940","block_type":"box","text":"The name and address of the custodian (the “Custodian”) of each Fund are provided on the","page_number":121,"box":{"x":249,"y":680,"width":654,"height":11}},{"id":"714da363-8467-4326-9bad-0f9bdc3cde94","block_type":"box","text":"inside back cover page of the Fund’s Prospectus. The Custodian is responsible for safeguarding and controlling the","page_number":121,"box":{"x":70,"y":695,"width":820,"height":11}},{"id":"252dbb0c-ae63-4dbc-b9d9-c56b4fb5a388","block_type":"box","text":"Fund’s cash and securities, handling the receipt and delivery of securities and collecting interest and dividends on","page_number":121,"box":{"x":70,"y":710,"width":814,"height":11}},{"id":"f836e73c-5953-4cb5-9990-499079f355c3","block_type":"box","text":"the Fund’s investments. The Custodian is authorized to establish separate accounts in foreign currencies and to","page_number":121,"box":{"x":68,"y":725,"width":802,"height":11}},{"id":"4d80ddbf-2f84-468e-a6b4-c9e58ac46bcb","block_type":"box","text":"cause foreign securities owned by the Fund to be held in its offices outside the United States and with certain foreign","page_number":121,"box":{"x":69,"y":740,"width":839,"height":11}},{"id":"a76d6759-4446-4655-bd1a-a12dc6d803a1","block_type":"box","text":"banks and securities depositories. A Fund also may use special purpose custodian banks from time to time for","page_number":121,"box":{"x":69,"y":755,"width":792,"height":11}},{"id":"a8067122-2adf-48db-90d2-cff67edabe69","block_type":"box","text":"certain assets.","page_number":121,"box":{"x":69,"y":771,"width":106,"height":8}},{"id":"3691e75d-65a2-4121-87c4-f1039cb8ee4b","block_type":"box","text":"For certain Feeder Funds, the Custodian also acts as the custodian of the Master Portfolio’s assets.","page_number":121,"box":{"x":102,"y":793,"width":716,"height":10}},{"id":"86d06136-5d1d-45e8-89f9-e9852b52e152","block_type":"box","text":"Generally, overdraft charges, if any, are treated as interest expense. With respect to certain Funds, on a monthly","page_number":121,"box":{"x":102,"y":816,"width":803,"height":11}},{"id":"303c6ae6-7ca1-4a48-b9fe-5db13eba1520","block_type":"box","text":"basis the Custodian nets the Fund’s daily positive and negative cash balances and calculates a credit (“custody","page_number":121,"box":{"x":69,"y":831,"width":799,"height":11}},{"id":"5077bdef-9cf7-470e-9f29-fd5117d60834","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":121,"box":{"x":69,"y":846,"width":834,"height":11}},{"id":"7deed7ee-eb92-4b2f-8d4d-5afc6e6fcef5","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":121,"box":{"x":69,"y":861,"width":826,"height":11}},{"id":"7fbb8a5b-330a-4b6f-91b4-f35d9755988a","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":121,"box":{"x":69,"y":876,"width":807,"height":11}},{"id":"d46b45b3-e8cc-40fd-a5d6-110ff82cbeb8","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":121,"box":{"x":68,"y":891,"width":836,"height":12}},{"id":"3afc6e15-79ba-4b30-a1f8-768361998f0d","block_type":"box","text":"Fund.","page_number":121,"box":{"x":70,"y":907,"width":36,"height":8}},{"id":"ce3b2962-0aa4-46eb-9dfb-129c3bbbaa2c","block_type":"box","text":"II-83","page_number":121,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c72276cc-b1e2-4355-bda1-247a0b35bcd1","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":121,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ade636dd-6213-4d78-be21-c6f3c358bce3","block_type":"box","text":"Accounting Services.","page_number":122,"box":{"x":101,"y":45,"width":148,"height":11}},{"id":"5fe2b930-210f-4adc-96c8-b1949da56336","block_type":"box","text":"Each Fund has entered into an agreement with State Street, BNY Mellon or JPM, pursuant","page_number":122,"box":{"x":256,"y":45,"width":641,"height":11}},{"id":"876200fa-9bd5-4d48-8365-0bfe055b4f46","block_type":"box","text":"to which State Street, BNY Mellon or JPM provides certain accounting and administrative services to the Fund. Each","page_number":122,"box":{"x":68,"y":60,"width":829,"height":11}},{"id":"43ffc734-c4f7-4611-845b-32d2b68f2be9","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":122,"box":{"x":70,"y":75,"width":797,"height":11}},{"id":"e368efcd-6ded-411b-bfb3-f956f0476e7a","block_type":"box","text":"Master LLCs.","page_number":122,"box":{"x":70,"y":90,"width":91,"height":9}},{"id":"6ecbce3c-83c9-4981-a66b-87caef2e65cb","block_type":"box","text":"See “Management, Advisory and Other Service Arrangements — Accounting Services” or “Management and","page_number":122,"box":{"x":102,"y":113,"width":771,"height":11}},{"id":"3bee1fcf-b611-419a-8cbf-8850475d750f","block_type":"box","text":"Advisory Arrangements — Accounting Services,” as applicable, in Part I of each Fund’s SAI for information on the","page_number":122,"box":{"x":68,"y":128,"width":810,"height":11}},{"id":"666de47d-2eb4-4616-b3cb-2dc1240f046b","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":122,"box":{"x":69,"y":143,"width":828,"height":11}},{"id":"b8725d4b-ca7f-43e3-ac68-03637c5e8bfd","block_type":"box","text":"applicable, the Administrator for the periods indicated.","page_number":122,"box":{"x":69,"y":158,"width":386,"height":11}},{"id":"10f539ef-94b7-486c-8aa7-6e54d335d7b2","block_type":"box","text":"Distribution Expenses.","page_number":122,"box":{"x":102,"y":181,"width":158,"height":11}},{"id":"0d72dcb3-f2fe-4b9b-9879-89b8dae0ac1e","block_type":"box","text":"Each Fund has entered into a distribution agreement with the Distributor in connection","page_number":122,"box":{"x":267,"y":181,"width":614,"height":11}},{"id":"32b367b9-932c-45b3-9927-196b44d940a2","block_type":"box","text":"with the continuous offering of each class of shares of the Fund (the “Distribution Agreements”). The Distribution","page_number":122,"box":{"x":68,"y":196,"width":807,"height":11}},{"id":"8a3b924b-0ac9-4e85-97de-55e414d1a204","block_type":"box","text":"Agreements obligate the Distributor to pay certain expenses in connection with the offering of each class of shares of","page_number":122,"box":{"x":68,"y":211,"width":842,"height":11}},{"id":"d10c4014-af01-4891-97b7-377ab13540f1","block_type":"box","text":"the Funds. After the prospectuses, statements of additional information and periodic reports have been prepared,","page_number":122,"box":{"x":68,"y":226,"width":813,"height":11}},{"id":"e6321993-71eb-4dac-a150-ac0f17daea28","block_type":"box","text":"set in type and mailed to shareholders, the Distributor pays for the printing and distribution of these documents used","page_number":122,"box":{"x":69,"y":241,"width":836,"height":11}},{"id":"ddfa338a-9731-405c-bb96-c28b22f6d2bb","block_type":"box","text":"in connection with the offering to dealers and investors. The Distributor also pays for other supplementary sales","page_number":122,"box":{"x":70,"y":256,"width":799,"height":12}},{"id":"42e59609-1fb0-4036-8426-e54189227892","block_type":"box","text":"literature and advertising costs. Each Distribution Agreement is subject to the same renewal requirements and","page_number":122,"box":{"x":70,"y":272,"width":788,"height":11}},{"id":"40b9efc8-3c79-4555-a1ac-a9bc104e4c5e","block_type":"box","text":"termination provisions as the Management Agreement described above.","page_number":122,"box":{"x":68,"y":287,"width":513,"height":11}},{"id":"64264d4c-65e3-4e06-b47e-82b1c8aa2b72","block_type":"box","text":"Code of Ethics","page_number":122,"box":{"x":69,"y":317,"width":105,"height":9}},{"id":"1ffea109-31e0-404f-bb01-c1fb0e352628","block_type":"box","text":"Each Fund, the Manager, each Sub-Adviser and the Distributor has adopted a Code of Ethics pursuant to Rule","page_number":122,"box":{"x":102,"y":339,"width":780,"height":12}},{"id":"d1b7dc7b-26b8-48e1-91a9-c0da49f3e11e","block_type":"box","text":"17j-1 under the Investment Company Act. The Code of Ethics establishes procedures for personal investing and","page_number":122,"box":{"x":70,"y":355,"width":794,"height":11}},{"id":"32fbc8f5-a3e3-4818-a30c-1d3b015e1476","block_type":"box","text":"restricts certain transactions. Employees subject to the Code of Ethics may invest in securities for their personal","page_number":122,"box":{"x":69,"y":370,"width":803,"height":11}},{"id":"b76bb40a-5826-4ca4-8ee5-542ede9386fb","block_type":"box","text":"investment accounts, including securities that may be purchased or held by a Fund.","page_number":122,"box":{"x":70,"y":385,"width":593,"height":11}},{"id":"7794057f-39ac-47d6-bba3-7c97baf8da02","block_type":"box","text":"SELECTIVE DISCLOSURE OF PORTFOLIO HOLDINGS","page_number":122,"box":{"x":282,"y":414,"width":413,"height":10}},{"id":"7761455b-4c02-4c92-b03b-279d08e8d7a0","block_type":"box","text":"The Board of Directors of each Fund and the Board of Directors of the Manager have each approved Portfolio","page_number":122,"box":{"x":101,"y":437,"width":777,"height":11}},{"id":"1b0a89ff-395f-4fa1-8502-8697b82ce8d5","block_type":"box","text":"Holdings and Related Information Distribution Guidelines (the “Policy”) regarding the disclosure of each Fund’s","page_number":122,"box":{"x":70,"y":452,"width":788,"height":11}},{"id":"0a0ff997-b068-4e33-9196-2a17cd62860a","block_type":"box","text":"portfolio securities, as applicable, and other portfolio information. The purpose of the Policy is to ensure that","page_number":122,"box":{"x":70,"y":467,"width":778,"height":11}},{"id":"b3b33e8f-1bf3-47dd-8cec-19c13f73eb1e","block_type":"box","text":"(i) shareholders and prospective shareholders of the Funds have equal access to portfolio holdings and","page_number":122,"box":{"x":69,"y":482,"width":737,"height":12}},{"id":"fb830439-d83b-47b0-a96d-446ced7e3b6d","block_type":"box","text":"characteristics and (ii) third parties (such as consultants, intermediaries and third-party data providers) have access","page_number":122,"box":{"x":69,"y":498,"width":829,"height":11}},{"id":"25d94f57-5b26-4979-acfd-08b3a315a117","block_type":"box","text":"to such information no earlier or more frequently than shareholders and prospective shareholders.","page_number":122,"box":{"x":68,"y":513,"width":701,"height":11}},{"id":"3d16adaf-9278-4c1e-84bc-5b9f81cc5259","block_type":"box","text":"Pursuant to the Policy, each Fund and the Manager may, under certain circumstances as set forth below, make","page_number":122,"box":{"x":102,"y":535,"width":791,"height":12}},{"id":"ebb1a439-0a4f-4806-a7dc-e9296665663b","block_type":"box","text":"selective disclosure with respect to a Fund’s Portfolio Characteristics (as defined below) and Portfolio Holdings (as","page_number":122,"box":{"x":69,"y":550,"width":819,"height":12}},{"id":"1eaf8112-7428-4c93-b1f3-47e12e5a19c4","block_type":"box","text":"defined below). The Board of Directors of each Fund and the Board of Directors of the Manager have each approved","page_number":122,"box":{"x":69,"y":566,"width":824,"height":11}},{"id":"66669ebd-d617-480f-9e03-7aa2b9de99b4","block_type":"box","text":"the adoption by the Fund of the Policy, and employees of the Manager are responsible for adherence to the Policy.","page_number":122,"box":{"x":68,"y":581,"width":813,"height":11}},{"id":"64be0437-7161-4db6-b01c-7b6be5319544","block_type":"box","text":"The Board of Directors provides ongoing oversight of the Fund’s and Manager’s compliance with the Policy.","page_number":122,"box":{"x":68,"y":596,"width":761,"height":11}},{"id":"ac923312-c8fe-4d81-83ad-de546fc0f62b","block_type":"box","text":"Notwithstanding the above, there is no assurance that the Policy will protect the Funds from the potential misuse of","page_number":122,"box":{"x":70,"y":611,"width":825,"height":11}},{"id":"a7af06ef-3e34-44fe-a4fa-c12d7dd3bbf8","block_type":"box","text":"holdings information by an individual or firms in possession of that information.","page_number":122,"box":{"x":69,"y":626,"width":565,"height":11}},{"id":"65d86dcc-64d9-4533-bfb4-f7ecd68d2336","block_type":"box","text":"Disclosure of material non-public information (“Confidential Information”) about a Fund’s Portfolio Holdings and/","page_number":122,"box":{"x":102,"y":649,"width":802,"height":11}},{"id":"1760c018-9b96-4a84-bb81-1d5e7ee29eb7","block_type":"box","text":"or Portfolio Characteristics is prohibited, except as provided in the Policy.","page_number":122,"box":{"x":69,"y":664,"width":520,"height":11}},{"id":"4b18a72b-1d53-47de-abb7-a5e8f84ee650","block_type":"box","text":"Confidential Information relating to a Fund may not be distributed to persons not employed by BlackRock unless","page_number":122,"box":{"x":102,"y":686,"width":797,"height":12}},{"id":"822a384c-5700-4857-9ad0-55b10428f0fb","block_type":"box","text":"the Fund has a legitimate business purpose for doing so and confidentiality obligations are in effect, as appropriate.","page_number":122,"box":{"x":68,"y":702,"width":829,"height":11}},{"id":"4daa1e74-d454-4146-b4c4-aebeeb42a503","block_type":"box","text":"•","page_number":122,"box":{"x":69,"y":725,"width":6,"height":4}},{"id":"b0121a1b-53af-4044-bdd7-c4074939be24","block_type":"box","text":"Por tfolio Holdings","page_number":122,"box":{"x":102,"y":722,"width":126,"height":11}},{"id":"f577ad4f-0a81-4084-bd89-288911231e63","block_type":"box","text":": “Portfolio Holdings” are a Fund’s portfolio securities and other instruments, and include, but","page_number":122,"box":{"x":229,"y":722,"width":671,"height":11}},{"id":"c2523f35-116f-4a51-8601-47a85c718122","block_type":"box","text":"are not limited to:","page_number":122,"box":{"x":102,"y":737,"width":125,"height":9}},{"id":"4b996180-fd53-4973-9ce0-8d9d87970159","block_type":"box","text":"•","page_number":122,"box":{"x":102,"y":760,"width":6,"height":5}},{"id":"278aa286-5f06-4603-99eb-c11114d445f8","block_type":"box","text":"for equity securities, information such as issuer name, CUSIP, ticker symbol, total shares and market value;","page_number":122,"box":{"x":134,"y":757,"width":768,"height":11}},{"id":"d1be6b0f-2983-47fc-bc27-eb4a42374e81","block_type":"box","text":"•","page_number":122,"box":{"x":102,"y":780,"width":6,"height":5}},{"id":"e51eb293-5af5-44ea-a453-eb00c85af806","block_type":"box","text":"for fixed income securities, information such as issuer name, CUSIP, ticker symbol, coupon, maturity,","page_number":122,"box":{"x":134,"y":777,"width":720,"height":11}},{"id":"8cc06f04-995d-4adb-952c-1b72cc18099b","block_type":"box","text":"current face value, market value, yield, WAL, WAM, duration and convexity;","page_number":122,"box":{"x":134,"y":792,"width":529,"height":12}},{"id":"c0e99d5d-b421-4de6-a7d9-f8de14c7a000","block_type":"box","text":"•","page_number":122,"box":{"x":102,"y":815,"width":6,"height":5}},{"id":"e7bdbc45-922a-458b-a68d-111e3d9050af","block_type":"box","text":"for all securities, information such as quantity, SEDOL and market price as of a specific date;","page_number":122,"box":{"x":134,"y":812,"width":664,"height":12}},{"id":"71fd9d96-1df1-4217-b3f7-2881a9884511","block_type":"box","text":"•","page_number":122,"box":{"x":102,"y":836,"width":6,"height":4}},{"id":"aad35ba3-0db8-4005-b7ec-0afb9fce738a","block_type":"box","text":"for derivatives, indicative data including, but not limited to, pay leg, receive leg, notional amount, reset","page_number":122,"box":{"x":134,"y":833,"width":731,"height":11}},{"id":"35e17742-4950-4ffd-8056-4bd99919b6ac","block_type":"box","text":"frequency and trade counterparty; and","page_number":122,"box":{"x":134,"y":848,"width":271,"height":11}},{"id":"c0f5cd8b-18b4-4177-a181-e79862e06367","block_type":"box","text":"•","page_number":122,"box":{"x":102,"y":871,"width":6,"height":4}},{"id":"d8f1c3b3-11fa-46c2-af03-0a160aa64841","block_type":"box","text":"for trading strategies, specific portfolio holdings, including the number of shares held, weightings of","page_number":122,"box":{"x":134,"y":868,"width":712,"height":11}},{"id":"fd4acf4b-d7c2-4d7c-9be9-2f3d40ade78d","block_type":"box","text":"particular holdings, trading details, pending or recent transactions and portfolio management plans to","page_number":122,"box":{"x":135,"y":883,"width":726,"height":11}},{"id":"9f02ffa6-928a-4e73-b3d0-6c0f60ee3e98","block_type":"box","text":"purchase or sell particular securities or allocation within particular sectors.","page_number":122,"box":{"x":135,"y":898,"width":533,"height":11}},{"id":"bf974796-ba5e-4e9c-93ed-9e180ca66895","block_type":"box","text":"II-84","page_number":122,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"bd130c1b-0a6c-4111-8476-74888cf55a4b","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":122,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9ddbd437-63db-48c8-8031-c26246deac0f","block_type":"box","text":"•","page_number":123,"box":{"x":69,"y":48,"width":6,"height":4}},{"id":"b0dad7f4-1db2-4d5e-b73f-101bdaa9a9d5","block_type":"box","text":"Por tfolio Characteristics (excluding Liquidity Metrics):","page_number":123,"box":{"x":102,"y":45,"width":377,"height":11}},{"id":"4ae878ef-e326-4392-8c0b-f41aff665c5e","block_type":"box","text":"“Portfolio Characteristics” include, but are not limited to,","page_number":123,"box":{"x":486,"y":45,"width":404,"height":10}},{"id":"836edc0e-be75-4115-9f15-ba8290d17283","block_type":"box","text":"sector allocation, credit quality breakdown, maturity distribution, duration and convexity measures, average credit","page_number":123,"box":{"x":102,"y":60,"width":807,"height":11}},{"id":"cb0db64f-8765-4e13-8b31-1fc89d1ae13b","block_type":"box","text":"quality, average maturity, average coupon, top 10 holdings with percent of the fund held, average market","page_number":123,"box":{"x":102,"y":75,"width":745,"height":11}},{"id":"84ef0dde-e05a-4f08-a681-9913d09f4a15","block_type":"box","text":"capitalization, capitalization range, risk related information (","page_number":123,"box":{"x":101,"y":90,"width":427,"height":11}},{"id":"43ecada5-981e-4e32-91ed-6e79a55ea3ce","block_type":"box","text":"e.g.","page_number":123,"box":{"x":529,"y":91,"width":25,"height":10}},{"id":"01955269-a021-4207-9e92-946a6d101c1b","block_type":"box","text":", value at risk, standard deviation), ROE, P/E,","page_number":123,"box":{"x":557,"y":90,"width":322,"height":11}},{"id":"3ad2ee02-83d7-429b-87c9-2d234e053113","block_type":"box","text":"P/B, P/CF, P/S and EPS.","page_number":123,"box":{"x":102,"y":105,"width":177,"height":11}},{"id":"2c0e43ab-3167-4b26-9386-703376d85c90","block_type":"box","text":"•","page_number":123,"box":{"x":102,"y":128,"width":6,"height":5}},{"id":"6f84cb65-3c40-4bd1-8cfe-f8bdfd83b0cf","block_type":"box","text":"Additional characteristics specific to money market funds include, but are not limited to, historical daily and","page_number":123,"box":{"x":134,"y":125,"width":766,"height":11}},{"id":"14c04a1d-9a3c-414c-999d-bca87871b76c","block_type":"box","text":"weekly liquid assets (as defined under Rule 2a-7) and historical fund net inflows and outflows.","page_number":123,"box":{"x":134,"y":140,"width":670,"height":12}},{"id":"818dead8-78f1-472c-afae-ed562f8fe2df","block_type":"box","text":"•","page_number":123,"box":{"x":69,"y":163,"width":6,"height":5}},{"id":"9d31f212-e6eb-45b0-838a-836da4ab977e","block_type":"box","text":"Por tfolio Characteristics — Liquidity Metrics:","page_number":123,"box":{"x":102,"y":161,"width":318,"height":11}},{"id":"7812a20e-6556-4406-8f8b-6e16c776e626","block_type":"box","text":"•","page_number":123,"box":{"x":102,"y":184,"width":6,"height":4}},{"id":"7af15311-bd44-4a76-b74f-b184815d8eeb","block_type":"box","text":"“Liquidity Metrics” which seek to ascertain a Fund’s liquidity profile under BlackRock’s global liquidity risk","page_number":123,"box":{"x":135,"y":181,"width":754,"height":11}},{"id":"29e38fef-1406-4fc4-bf3a-4d5659e80b82","block_type":"box","text":"methodology which include, but are not limited to: (a) disclosure regarding the number of days needed to","page_number":123,"box":{"x":135,"y":196,"width":746,"height":11}},{"id":"e907723b-a6c3-48e3-a52c-6af3e833b903","block_type":"box","text":"liquidate a portfolio or the portfolio’s underlying investments; and (b) the percentage of a Fund’s NAV","page_number":123,"box":{"x":135,"y":211,"width":721,"height":11}},{"id":"50733154-4f26-4440-80b3-a975b8cfb978","block_type":"box","text":"invested in a particular liquidity tier under BlackRock’s global liquidity risk methodology.","page_number":123,"box":{"x":135,"y":226,"width":621,"height":11}},{"id":"8e504369-a18f-4b16-bcce-16218be62dab","block_type":"box","text":"•","page_number":123,"box":{"x":102,"y":249,"width":6,"height":5}},{"id":"862aacd1-ec0c-4ec0-b126-a6f850686a1a","block_type":"box","text":"The dissemination of position-level liquidity metrics data and any non-public regulatory data pursuant to SEC","page_number":123,"box":{"x":134,"y":246,"width":771,"height":11}},{"id":"4dee6302-6c8f-47bc-beb3-ae58558da333","block_type":"box","text":"Rule 22e-4 (including SEC liquidity tiering) is not permitted unless pre-approved.","page_number":123,"box":{"x":135,"y":261,"width":568,"height":12}},{"id":"98977008-4b09-4b36-8c27-cf0da4656aac","block_type":"box","text":"•","page_number":123,"box":{"x":102,"y":284,"width":6,"height":5}},{"id":"5ff7f9d4-cde5-4909-a028-5f53717b5bc2","block_type":"box","text":"Disclosure of Liquidity Metrics pursuant to Section 3 of the Policy should be reviewed by BlackRock’s Risk","page_number":123,"box":{"x":135,"y":281,"width":755,"height":12}},{"id":"3cd4c678-5340-4691-8748-1d832d07bc3a","block_type":"box","text":"and Quantitative Analysis Group and the relevant portfolio management team prior to dissemination.","page_number":123,"box":{"x":134,"y":297,"width":716,"height":11}},{"id":"d91a0bb4-a543-4255-a754-4e86ccb0cc60","block_type":"box","text":"Information that is non-material or that may be obtained from public sources (","page_number":123,"box":{"x":102,"y":319,"width":553,"height":11}},{"id":"10ca1489-58e3-4455-8823-3a63264a357f","block_type":"box","text":"i.e.","page_number":123,"box":{"x":658,"y":320,"width":20,"height":8}},{"id":"6eb6297f-c013-4a17-9912-0af29450bafe","block_type":"box","text":", information that has been","page_number":123,"box":{"x":680,"y":319,"width":193,"height":11}},{"id":"e9d37c58-be42-4ba8-b977-19f20b47d1d0","block_type":"box","text":"publicly disclosed via a filing with the SEC (","page_number":123,"box":{"x":70,"y":334,"width":305,"height":12}},{"id":"fc2d3e7b-b3d7-45e6-9e74-742b3b3b5904","block_type":"box","text":"e.g.","page_number":123,"box":{"x":377,"y":336,"width":25,"height":10}},{"id":"175ceaf9-aaf3-4ef8-b44e-e8e83ae90a6d","block_type":"box","text":", a fund’s annual report and annual financial statements), through a","page_number":123,"box":{"x":404,"y":334,"width":485,"height":12}},{"id":"b61b1c1d-39c0-43c3-bc53-bf0fc95e97cc","block_type":"box","text":"press release or placement on a publicly-available internet website), or information derived or calculated from such","page_number":123,"box":{"x":70,"y":349,"width":817,"height":12}},{"id":"76378ab2-4237-49da-9c57-fc86451fb53c","block_type":"box","text":"public sources shall not be deemed Confidential Information.","page_number":123,"box":{"x":70,"y":365,"width":433,"height":11}},{"id":"5b649d81-a038-47cd-8436-429c066515d1","block_type":"box","text":"Portfolio Holdings and Portfolio Characteristics may be disclosed in accordance with the below schedule.","page_number":123,"box":{"x":102,"y":387,"width":747,"height":12}},{"id":"c09cc8b7-468b-4709-b14e-d2377aef84e9","block_type":"box","text":"Prior to the time periods designated below, non-public portfolio holdings and portfolio characteristics may only","page_number":123,"box":{"x":102,"y":410,"width":806,"height":11}},{"id":"3c11ff7b-66b1-431c-b7c2-07af951bcfb6","block_type":"box","text":"be disclosed with both a non-disclosure or confidentiality agreement and Fund CCO approval.","page_number":123,"box":{"x":69,"y":425,"width":678,"height":11}},{"id":"379f07b9-718b-4302-a48a-c8d2b8fe5ec6","block_type":"box","text":"Thereafter, BlackRock","page_number":123,"box":{"x":753,"y":425,"width":156,"height":11}},{"id":"653b83e5-8d21-4a5c-9ed3-8d04d3053523","block_type":"box","text":"may disclose such information to shareholders, prospective shareholders, intermediaries, consultants and third-party","page_number":123,"box":{"x":69,"y":440,"width":838,"height":11}},{"id":"8a78831d-4ef4-4cd2-b36d-89e34351ceea","block_type":"box","text":"data providers. BlackRock generally discloses portfolio holdings and other portfolio characteristics information on the","page_number":123,"box":{"x":69,"y":455,"width":837,"height":12}},{"id":"7f614f4a-a7fc-4769-9645-dced6bae7ebc","block_type":"box","text":"lag times established herein on its public website.","page_number":123,"box":{"x":70,"y":471,"width":356,"height":11}},{"id":"60ec76a9-2179-49a2-8f08-4cda59563975","block_type":"box","text":"II-85","page_number":123,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1b5ddecc-ad6b-49e9-bca6-c070ea6eca00","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":123,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d2e30eff-e3b2-4eb9-ab6f-2ea60f7b54e2","block_type":"box","text":"Time Periods for Portfolio Holdings","page_number":124,"box":{"x":440,"y":69,"width":254,"height":11}},{"id":"ded1db7a-d65e-4d52-aa82-56e08aec6bd8","block_type":"box","text":"Funds in Scope Days After Month-End — After Which","page_number":124,"box":{"x":339,"y":91,"width":536,"height":11}},{"id":"d53c5540-40f8-4390-8c73-148a03aff9b0","block_type":"box","text":"Portfolio Holdings May be Disclosed","page_number":124,"box":{"x":609,"y":106,"width":263,"height":11}},{"id":"2f0a8160-482e-405f-a217-694d2f849522","block_type":"box","text":"All Open-End Mutual Funds (non-money","page_number":124,"box":{"x":231,"y":129,"width":277,"height":11}},{"id":"f6830692-35ef-41f1-b5b4-ef2d9edb1987","block_type":"box","text":"market) except those noted below.","page_number":124,"box":{"x":232,"y":144,"width":243,"height":11}},{"id":"7b19f09b-71a4-4fb9-90e2-24dd8a4a967d","block_type":"box","text":"20 Calendar Days After Month-End","page_number":124,"box":{"x":578,"y":129,"width":244,"height":11}},{"id":"503a4f6e-e55c-466c-9b15-4a091a2fc5b7","block_type":"box","text":"Global Allocation funds,","page_number":124,"box":{"x":231,"y":167,"width":167,"height":10}},{"id":"44b0c7f2-bb7d-4b8c-9bbc-9e392399891d","block_type":"box","text":"1","page_number":124,"box":{"x":400,"y":167,"width":4,"height":5}},{"id":"bec5476e-519c-4b65-8bb6-164dcc72385e","block_type":"box","text":"BlackRock Core","page_number":124,"box":{"x":410,"y":167,"width":110,"height":9}},{"id":"ee4fdd84-253a-4284-8791-b6fb9dae5496","block_type":"box","text":"Bond Portfolio of BlackRock Funds V,","page_number":124,"box":{"x":232,"y":182,"width":261,"height":10}},{"id":"792c26d7-66c5-4e1b-bc68-c2ef9536756c","block_type":"box","text":"BlackRock Strategic Income Opportunities","page_number":124,"box":{"x":232,"y":197,"width":298,"height":11}},{"id":"a7aa9b76-535e-4106-a1f7-1625a00f518d","block_type":"box","text":"Portfolio of BlackRock Funds V, BlackRock","page_number":124,"box":{"x":232,"y":212,"width":300,"height":11}},{"id":"a1feab0f-a0c0-4f22-b46a-2122019d73ed","block_type":"box","text":"Strategic Global Bond Fund, Inc., BlackRock","page_number":124,"box":{"x":231,"y":227,"width":312,"height":12}},{"id":"db033f9d-1357-4022-b037-48e31166cc91","block_type":"box","text":"Total Return Fund of BlackRock Bond Fund,","page_number":124,"box":{"x":231,"y":242,"width":306,"height":11}},{"id":"9ab7afbf-b1ec-49ef-9cfe-df7b97f127c0","block_type":"box","text":"Inc., BlackRock Total Return V.I. Fund of","page_number":124,"box":{"x":232,"y":258,"width":283,"height":10}},{"id":"0f2ca586-43ec-4649-92c9-30ec6e69e4a7","block_type":"box","text":"BlackRock Variable Series Funds II, Inc.,","page_number":124,"box":{"x":232,"y":273,"width":283,"height":10}},{"id":"37384f6e-a7c9-472a-8188-bd59e6d1722f","block_type":"box","text":"BlackRock Unconstrained Equity Fund,","page_number":124,"box":{"x":232,"y":288,"width":270,"height":11}},{"id":"cc5c1bc5-90e1-4b54-8546-a4f50c1fbf64","block_type":"box","text":"BlackRock Systematic Multi-Strategy Fund of","page_number":124,"box":{"x":232,"y":303,"width":316,"height":11}},{"id":"5a12b1f7-7b58-4018-af5d-2ffb2dde655b","block_type":"box","text":"BlackRock Funds IV and BlackRock Global","page_number":124,"box":{"x":232,"y":318,"width":296,"height":9}},{"id":"0e4e6f91-103d-469b-85c2-e49333fcea4a","block_type":"box","text":"Equity Market Neutral Fund of BlackRock","page_number":124,"box":{"x":232,"y":333,"width":288,"height":11}},{"id":"e7d41714-05df-4221-b8aa-1e61f19f9649","block_type":"box","text":"Funds","page_number":124,"box":{"x":232,"y":348,"width":40,"height":9}},{"id":"fae69d13-d357-48c2-837b-4ffdb0186e33","block_type":"box","text":"SM","page_number":124,"box":{"x":274,"y":349,"width":10,"height":4}},{"id":"01406252-4649-4c1f-8e41-d131d2f56b94","block_type":"box","text":".","page_number":124,"box":{"x":287,"y":356,"width":1,"height":1}},{"id":"831ba4b6-2058-4775-a551-1c2b58f4d7b2","block_type":"box","text":"60 Calendar Days After Month-End","page_number":124,"box":{"x":578,"y":167,"width":244,"height":11}},{"id":"8d8ee828-1b1a-43bf-889d-9881be2fbc8b","block_type":"box","text":"1","page_number":124,"box":{"x":823,"y":167,"width":4,"height":5}},{"id":"a436f3fd-885b-4d9a-85a0-b623cbda1719","block_type":"box","text":"BlackRock Capital Appreciation Fund, Inc.,","page_number":124,"box":{"x":232,"y":371,"width":298,"height":11}},{"id":"11250366-8396-45e1-81fa-66a4330b109c","block_type":"box","text":"BlackRock Equity Dividend Fund, BlackRock","page_number":124,"box":{"x":232,"y":386,"width":308,"height":11}},{"id":"d7c22f00-f591-4ed2-8099-04667c7df9dd","block_type":"box","text":"High Equity Income Fund of BlackRock","page_number":124,"box":{"x":232,"y":401,"width":271,"height":11}},{"id":"f7bfa816-8005-47f9-871a-274c6b3ce6d0","block_type":"box","text":"Funds","page_number":124,"box":{"x":232,"y":417,"width":40,"height":8}},{"id":"1d0aa2d3-cc53-4ada-a3b2-41a87375e371","block_type":"box","text":"SM","page_number":124,"box":{"x":274,"y":417,"width":10,"height":4}},{"id":"747667a4-4e42-499a-8d46-665928f2f3a1","block_type":"box","text":", BlackRock Large Cap Focus Growth","page_number":124,"box":{"x":286,"y":416,"width":260,"height":12}},{"id":"fa427111-7709-4b01-bd8e-a8ae762f6f64","block_type":"box","text":"Fund, Inc., BlackRock Large Cap Focus Value","page_number":124,"box":{"x":232,"y":432,"width":318,"height":11}},{"id":"14969e1b-3e66-4c0a-9b57-18e37474bb7d","block_type":"box","text":"Fund, Inc., BlackRock Mid-Cap Growth Equity","page_number":124,"box":{"x":232,"y":447,"width":316,"height":11}},{"id":"7fe73707-4248-40e4-8301-d15064ac91a2","block_type":"box","text":"Portfolio of BlackRock Funds","page_number":124,"box":{"x":232,"y":462,"width":203,"height":9}},{"id":"f9a5c842-3ae6-4633-8d17-2ee5d8122dd4","block_type":"box","text":"SM","page_number":124,"box":{"x":436,"y":462,"width":11,"height":4}},{"id":"8d354f3f-e90c-4f07-8c25-e471714886d5","block_type":"box","text":", BlackRock","page_number":124,"box":{"x":449,"y":462,"width":81,"height":10}},{"id":"9d990149-6ea4-4fdb-bd89-bc15e5264b60","block_type":"box","text":"Mid-Cap Value Fund of BlackRock Mid-Cap","page_number":124,"box":{"x":232,"y":477,"width":297,"height":11}},{"id":"d0a45823-7ee0-4d8a-96ea-7c976119362e","block_type":"box","text":"Value Series, Inc.","page_number":124,"box":{"x":231,"y":492,"width":122,"height":10}},{"id":"f5566ab2-680c-4cab-9e92-05c8f4b9b581","block_type":"box","text":"15 Calendar Days After Month-End","page_number":124,"box":{"x":578,"y":371,"width":244,"height":11}},{"id":"43dd1448-ef2c-4b03-a3d1-52d29434dc32","block_type":"box","text":"Time Periods for Portfolio Characteristics (Excluding Liquidity Metrics (Addressed Below))","page_number":124,"box":{"x":158,"y":515,"width":661,"height":11}},{"id":"0081fedd-5854-46c1-94b5-944ca5b3e51a","block_type":"box","text":"Funds in Scope Days After Month-End — After Which","page_number":124,"box":{"x":339,"y":537,"width":536,"height":11}},{"id":"4e539773-df80-48c8-a3ee-45070753db96","block_type":"box","text":"Portfolio Characteristics May be Disclosed","page_number":124,"box":{"x":585,"y":552,"width":311,"height":11}},{"id":"83635230-1b07-474f-a1b4-a1a29f81999b","block_type":"box","text":"All Open-End Mutual Funds (non-money","page_number":124,"box":{"x":231,"y":575,"width":277,"height":11}},{"id":"6b5c2a25-ff99-487d-812e-ff5bd8c8111c","block_type":"box","text":"market)","page_number":124,"box":{"x":232,"y":590,"width":52,"height":11}},{"id":"87b1889a-c684-48e4-8c0f-769c642c5e37","block_type":"box","text":"5 Calendar Days After Month-End","page_number":124,"box":{"x":578,"y":575,"width":234,"height":11}},{"id":"9c26893f-078b-4cf3-8c2c-6197b4bf90ef","block_type":"box","text":"1","page_number":124,"box":{"x":69,"y":615,"width":3,"height":4}},{"id":"332841fa-e5b9-4403-8090-ed37872f2a9e","block_type":"box","text":"Global Allocation Exception:","page_number":124,"box":{"x":94,"y":615,"width":164,"height":9}},{"id":"48015f5c-c88d-43ff-98ed-8e45257a3d0d","block_type":"box","text":"The “Global Allocation funds” include BlackRock Global Allocation Fund, Inc., BlackRock Global Allocation","page_number":124,"box":{"x":262,"y":615,"width":598,"height":9}},{"id":"9cb90ab9-2a43-42d5-8298-386276f8887e","block_type":"box","text":"Portfolio of BlackRock Series Fund, Inc. and BlackRock Global Allocation V.I. Fund of BlackRock Variable Series Funds, Inc. Information on","page_number":124,"box":{"x":94,"y":625,"width":784,"height":9}},{"id":"d88dca6e-82f4-4d01-adcf-076afbbddbc2","block_type":"box","text":"certain Portfolio Characteristics of BlackRock Global Allocation Portfolio of BlackRock Series Fund, Inc. and BlackRock Global Allocation V.I.","page_number":124,"box":{"x":93,"y":635,"width":795,"height":9}},{"id":"e18e05b9-3330-448d-86a6-1e3accba63e7","block_type":"box","text":"Fund of BlackRock Variable Series Funds, Inc. is available, upon request, to insurance companies that use these funds as underlying","page_number":124,"box":{"x":94,"y":645,"width":757,"height":9}},{"id":"f3088705-3c53-40f1-bc59-345a3060486c","block_type":"box","text":"investments (and to advisers and sub-advisers of funds invested in BlackRock Global Allocation Portfolio of BlackRock Series Fund, Inc. and","page_number":124,"box":{"x":94,"y":656,"width":797,"height":8}},{"id":"c5fd0ec1-75e7-4fa0-9c08-d8bcb90ef7d7","block_type":"box","text":"BlackRock Global Allocation V.I. Fund of BlackRock Variable Series Funds, Inc.) in their variable annuity contracts and variable life insurance","page_number":124,"box":{"x":94,"y":666,"width":793,"height":9}},{"id":"bfc3beb1-6735-408d-ad26-89b78976a4d6","block_type":"box","text":"policies on a weekly basis (or such other period as may be determined to be appropriate).","page_number":124,"box":{"x":94,"y":676,"width":511,"height":9}},{"id":"8b3cdfb8-522d-4145-870e-6e4c33bf9355","block_type":"box","text":"Open-End Mutual Funds and ETFs (Excluding Money Market Mutual Funds and MM ETFs)","page_number":124,"box":{"x":163,"y":694,"width":651,"height":11}},{"id":"aeca3fb7-00f0-4270-b7b5-83cdccb1998f","block_type":"box","text":"Time Periods for Portfolio Characteristics: Liquidity Metrics","page_number":124,"box":{"x":350,"y":709,"width":434,"height":11}},{"id":"e84b42f8-0171-4ce0-828a-9638b8a44dc0","block_type":"box","text":"Funds in Scope Days After Quarter-End — After Which","page_number":124,"box":{"x":339,"y":732,"width":540,"height":11}},{"id":"388b6765-9c9b-47d6-8fcd-3bea556dcd73","block_type":"box","text":"Liquidity Metrics May be Disclosed","page_number":124,"box":{"x":613,"y":747,"width":255,"height":11}},{"id":"ebf18626-839a-4140-b88e-bbfc6661f837","block_type":"box","text":"All Open-End Mutual Funds and ETFs (non","page_number":124,"box":{"x":231,"y":770,"width":300,"height":11}},{"id":"a9f1d2f4-175c-46e9-afeb-2b72fafe665c","block_type":"box","text":"money market).","page_number":124,"box":{"x":232,"y":785,"width":108,"height":11}},{"id":"0620a618-60a2-438b-92f7-fa9419a8ca21","block_type":"box","text":"60 Calendar Days After Quarter-End","page_number":124,"box":{"x":578,"y":770,"width":253,"height":11}},{"id":"804dc0d7-afa7-48cd-a768-dd7dbb53ad2a","block_type":"box","text":"If Liquidity Metrics are disclosed to one party, they must also be disclosed to all other","page_number":124,"box":{"x":232,"y":808,"width":631,"height":11}},{"id":"d493b44f-eb73-4612-9984-2799f4e4caaf","block_type":"box","text":"parties requesting the same information.","page_number":124,"box":{"x":231,"y":823,"width":298,"height":11}},{"id":"e6986c48-cee6-43c7-a91e-052ffa8c3d44","block_type":"box","text":"Money Market Mutual Funds and ETFs","page_number":124,"box":{"x":340,"y":864,"width":281,"height":11}},{"id":"11a08ebe-8e72-4779-81c0-fbd7ac3bbb01","block_type":"box","text":"2,3","page_number":124,"box":{"x":627,"y":864,"width":11,"height":5}},{"id":"13260bd7-2c4d-49ce-b6cf-bd1f888d82cb","block_type":"box","text":"Money Market ETFs will comply with the disclosure requirements under both the Money Market (Rule 2a-7) Policy and","page_number":124,"box":{"x":75,"y":879,"width":834,"height":11}},{"id":"f316e74d-ac7d-4b29-b687-9e67d889ff14","block_type":"box","text":"the ETF Rule (Rule 6c-11) Policy.","page_number":124,"box":{"x":74,"y":894,"width":229,"height":11}},{"id":"f789f600-ca4e-4494-ae36-23688f7efc50","block_type":"box","text":"II-86","page_number":124,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7a22f7f6-9e76-4d6f-b4ed-cebe3a6ca015","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":124,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1451f29a-bba4-416b-a3e9-1f03451d6a59","block_type":"box","text":"Time Periods","page_number":125,"box":{"x":520,"y":49,"width":94,"height":9}},{"id":"4f7d3036-6f6d-44ef-8ff1-6c9c41c3910a","block_type":"box","text":"Prior to 5 Business Days After Month-End 5 Business Days After Month-End to Date of","page_number":125,"box":{"x":243,"y":72,"width":659,"height":11}},{"id":"2014a8c9-9b55-4b08-bd9f-3c79e0ba0e7b","block_type":"box","text":"Public Filing","page_number":125,"box":{"x":697,"y":87,"width":88,"height":11}},{"id":"8090dc46-6e1c-40cf-a5f0-bf982f242f02","block_type":"box","text":"Portfolio","page_number":125,"box":{"x":75,"y":110,"width":61,"height":9}},{"id":"e8af5e6c-7690-4b15-8b6b-a3fb74c29ab8","block_type":"box","text":"Holdings","page_number":125,"box":{"x":75,"y":125,"width":61,"height":11}},{"id":"f2f107f5-3767-4290-b853-36c433f2870f","block_type":"box","text":"Cannot disclose without non-disclosure or","page_number":125,"box":{"x":231,"y":110,"width":297,"height":9}},{"id":"040babe5-9019-4059-8e36-a992ef4bd3e7","block_type":"box","text":"confidentiality agreement and CCO approval","page_number":125,"box":{"x":231,"y":125,"width":310,"height":11}},{"id":"904b39e6-946e-4325-b1ed-0b66c9c4d345","block_type":"box","text":"except the following Portfolio Holdings","page_number":125,"box":{"x":231,"y":140,"width":271,"height":11}},{"id":"70134f53-b3bc-4c81-b50f-c442af5232b2","block_type":"box","text":"information is required to be released on the","page_number":125,"box":{"x":232,"y":155,"width":318,"height":11}},{"id":"cd1696c6-ebda-4753-bb97-06bef3737900","block_type":"box","text":"website pursuant to Rule 2a-7 on a monthly","page_number":125,"box":{"x":231,"y":170,"width":311,"height":11}},{"id":"e4a6e5d8-9a2a-4929-a050-0f86a710ada8","block_type":"box","text":"basis: name of issuer, category of","page_number":125,"box":{"x":231,"y":185,"width":244,"height":11}},{"id":"3906cc66-5c9c-4ba7-b7e5-6f5fddf43b13","block_type":"box","text":"investment, CUSIP, principal amount, maturity","page_number":125,"box":{"x":232,"y":200,"width":325,"height":11}},{"id":"ce12816e-b999-4406-b2f3-24a7668eed6d","block_type":"box","text":"dates, yields and value. BlackRock will","page_number":125,"box":{"x":231,"y":216,"width":273,"height":10}},{"id":"0923a473-31f4-4352-b573-a0e463a3b47f","block_type":"box","text":"release this information on the following","page_number":125,"box":{"x":232,"y":230,"width":286,"height":12}},{"id":"ab9b23e5-de61-4af0-af00-42afc0852075","block_type":"box","text":"timelines or on a more frequent timeline than","page_number":125,"box":{"x":231,"y":246,"width":323,"height":11}},{"id":"47f8b428-4c5e-437e-9bf9-b362844f9305","block_type":"box","text":"required under Rule 2a-7:","page_number":125,"box":{"x":232,"y":261,"width":179,"height":11}},{"id":"09f7de84-19a3-45bd-ad9e-f887858e220b","block_type":"box","text":"•","page_number":125,"box":{"x":234,"y":279,"width":4,"height":3}},{"id":"64987897-b32f-47d4-a44f-a0ddf3e57f61","block_type":"box","text":"Government MMFs: Daily portfolio holdings","page_number":125,"box":{"x":241,"y":276,"width":306,"height":11}},{"id":"0effa59a-b5f5-4a0a-8e4d-f117920caced","block_type":"box","text":"are released on the website on a one","page_number":125,"box":{"x":241,"y":291,"width":266,"height":9}},{"id":"c00d07d1-7f1d-4140-9867-06186905115a","block_type":"box","text":"business day lag.","page_number":125,"box":{"x":241,"y":306,"width":122,"height":11}},{"id":"318d1567-11c7-47e0-afd5-08d7ea5eac4b","block_type":"box","text":"•","page_number":125,"box":{"x":234,"y":324,"width":4,"height":3}},{"id":"875b4fb6-9e83-483a-9ded-e58c22a7104a","block_type":"box","text":"Money Market ETFs (prime and","page_number":125,"box":{"x":242,"y":321,"width":218,"height":11}},{"id":"39f78331-3964-48ed-866e-eb850f986e4c","block_type":"box","text":"government): Daily portfolio holdings","page_number":125,"box":{"x":240,"y":336,"width":261,"height":12}},{"id":"793fc76f-d46e-4364-81ac-64c09e47f956","block_type":"box","text":"information released pursuant to ETF rule","page_number":125,"box":{"x":242,"y":351,"width":294,"height":11}},{"id":"fec817ff-ece6-49d7-aae9-7c3546f1612c","block_type":"box","text":"requirements.","page_number":125,"box":{"x":241,"y":367,"width":97,"height":10}},{"id":"81a7a3e1-56c6-4b3c-b399-9613b560940f","block_type":"box","text":"•","page_number":125,"box":{"x":234,"y":385,"width":4,"height":3}},{"id":"088e2594-5649-40f0-a96d-795bbcee9478","block_type":"box","text":"Certain Money Market Mutual Funds and","page_number":125,"box":{"x":241,"y":382,"width":289,"height":11}},{"id":"9f547ec5-2437-43ee-bd1a-b15a4b032256","block_type":"box","text":"Money Market ETFs: Weekly schedule of","page_number":125,"box":{"x":242,"y":397,"width":285,"height":11}},{"id":"12bf5d5e-fd1d-4cd0-b052-89f1c88c7525","block_type":"box","text":"investments (PDF) is posted to the website","page_number":125,"box":{"x":242,"y":412,"width":304,"height":11}},{"id":"d6359be9-103a-42af-b5bf-853f840a603e","block_type":"box","text":"at least one business day after week-end.","page_number":125,"box":{"x":241,"y":427,"width":296,"height":11}},{"id":"f7ab253a-ae04-484a-b9fb-288e8a4d6bd2","block_type":"box","text":"(The Cash business identifies those Funds.)","page_number":125,"box":{"x":241,"y":442,"width":312,"height":11}},{"id":"3125655b-b189-4ea0-a888-f1fb16550b9e","block_type":"box","text":"May disclose to shareholders, prospective","page_number":125,"box":{"x":578,"y":110,"width":300,"height":11}},{"id":"b8fd6e08-1c9c-4cfb-948a-22d1d279dc13","block_type":"box","text":"shareholders, intermediaries, consultants","page_number":125,"box":{"x":578,"y":125,"width":297,"height":10}},{"id":"300366b8-f8f8-4762-bace-0a9c6e35e426","block_type":"box","text":"and third party data providers. If Portfolio","page_number":125,"box":{"x":578,"y":140,"width":294,"height":11}},{"id":"2a656315-cc92-41c4-9f44-fc3c43d264e1","block_type":"box","text":"Holdings are disclosed to one party, they","page_number":125,"box":{"x":578,"y":155,"width":291,"height":11}},{"id":"0ec41d32-2682-4cfb-9d43-8abc5eb37414","block_type":"box","text":"must also be disclosed to all other parties","page_number":125,"box":{"x":578,"y":170,"width":302,"height":11}},{"id":"f7dd4282-5479-45cd-bb1a-7ecc25c6d28e","block_type":"box","text":"requesting the same information.","page_number":125,"box":{"x":578,"y":185,"width":236,"height":11}},{"id":"2559b89a-3166-45b7-9bf1-86079b43a2c2","block_type":"box","text":"Portfolio","page_number":125,"box":{"x":75,"y":465,"width":61,"height":9}},{"id":"58e43c4b-1f0f-4d02-98db-cca26c1c1a54","block_type":"box","text":"Characteristics","page_number":125,"box":{"x":74,"y":480,"width":111,"height":9}},{"id":"f71a3194-46cf-45db-9d8a-1d30c7ab15e6","block_type":"box","text":"Cannot disclose without non-disclosure or","page_number":125,"box":{"x":231,"y":465,"width":297,"height":9}},{"id":"01be3175-d47b-4237-9917-192bde438ff5","block_type":"box","text":"confidentiality agreement and CCO approval","page_number":125,"box":{"x":231,"y":480,"width":310,"height":11}},{"id":"ec976219-5148-46d1-8d06-ed1ec6adc9ab","block_type":"box","text":"except the following information is:","page_number":125,"box":{"x":231,"y":495,"width":247,"height":11}},{"id":"1e321bf7-e672-49e2-8a3d-71e42c6c112d","block_type":"box","text":"(i) required to be released on the Fund’s","page_number":125,"box":{"x":231,"y":510,"width":287,"height":11}},{"id":"bb512820-36f0-4c34-b362-a500f2a3a96e","block_type":"box","text":"website daily (","page_number":125,"box":{"x":231,"y":526,"width":100,"height":10}},{"id":"2c8fb2f2-ac08-4339-bbf2-560731c549d4","block_type":"box","text":"i.e.","page_number":125,"box":{"x":334,"y":526,"width":20,"height":8}},{"id":"459465a6-b9bb-46c9-98e5-895ac8b67632","block_type":"box","text":", each Business Day as of","page_number":125,"box":{"x":356,"y":525,"width":186,"height":11}},{"id":"3b06079d-cbca-4ec1-993d-c634a3cb6b32","block_type":"box","text":"the end of the preceding Business Day):","page_number":125,"box":{"x":231,"y":540,"width":285,"height":12}},{"id":"37dc28b9-737e-452e-aba9-cc81123da246","block_type":"box","text":"•","page_number":125,"box":{"x":234,"y":559,"width":4,"height":3}},{"id":"0c55ba4c-e766-4e1e-8d83-f78459d06e46","block_type":"box","text":"Historical NAVs calculated based on market","page_number":125,"box":{"x":242,"y":556,"width":309,"height":8}},{"id":"562c65fb-e001-4a52-97d2-e94aae9dcedf","block_type":"box","text":"factors (","page_number":125,"box":{"x":240,"y":571,"width":58,"height":11}},{"id":"a0420e09-adea-464c-9642-70719029ed24","block_type":"box","text":"e.g.","page_number":125,"box":{"x":300,"y":572,"width":25,"height":10}},{"id":"e5f0d968-d6a1-4955-b77f-1817dff404a2","block_type":"box","text":", marked to market).","page_number":125,"box":{"x":328,"y":571,"width":143,"height":11}},{"id":"a4680958-76cd-4826-b226-5e27ac2a4880","block_type":"box","text":"•","page_number":125,"box":{"x":234,"y":589,"width":4,"height":3}},{"id":"9165bd33-2ccb-4295-a267-954ac3aa63b2","block_type":"box","text":"Percentage of fund assets invested in daily","page_number":125,"box":{"x":241,"y":586,"width":307,"height":11}},{"id":"a9009d19-7eef-424a-b527-da337bd1987c","block_type":"box","text":"and weekly liquid assets (as defined under","page_number":125,"box":{"x":241,"y":601,"width":304,"height":11}},{"id":"b76dd18e-a94e-4a0a-adbb-ae48b09b1066","block_type":"box","text":"Rule 2a-7).","page_number":125,"box":{"x":242,"y":616,"width":75,"height":11}},{"id":"ea7b9010-5c33-47a2-a434-882a9a1d8aed","block_type":"box","text":"•","page_number":125,"box":{"x":234,"y":634,"width":4,"height":3}},{"id":"75805a67-fc04-440a-b1db-2082ef04810b","block_type":"box","text":"Daily net flow information (inflows less","page_number":125,"box":{"x":242,"y":631,"width":273,"height":11}},{"id":"4451ae69-cb2f-4aaa-84f0-6b63447e16b1","block_type":"box","text":"outflows).","page_number":125,"box":{"x":241,"y":646,"width":67,"height":11}},{"id":"6ab8e2bf-63d1-48bf-b6e5-1ed72e2f5306","block_type":"box","text":"•","page_number":125,"box":{"x":234,"y":664,"width":4,"height":4}},{"id":"3a9d02da-846f-488d-8e13-5a41d9d78e8d","block_type":"box","text":"Other information as may be required by","page_number":125,"box":{"x":241,"y":661,"width":287,"height":11}},{"id":"d2525084-ed4c-45f5-9839-bf28e70ca3d1","block_type":"box","text":"Rule 2a-7.","page_number":125,"box":{"x":242,"y":677,"width":70,"height":8}},{"id":"d857d297-a02c-428c-b0a2-c425bcf79fd1","block_type":"box","text":"(ii) voluntarily released on the Fund’s","page_number":125,"box":{"x":241,"y":692,"width":262,"height":11}},{"id":"d60235fc-0840-43df-9a5c-88550bb4cce6","block_type":"box","text":"website daily (","page_number":125,"box":{"x":240,"y":707,"width":101,"height":11}},{"id":"531af43e-3adf-40d2-9d66-a2b4e198842c","block_type":"box","text":"i.e.","page_number":125,"box":{"x":343,"y":707,"width":20,"height":9}},{"id":"12ffc0ba-3995-4687-ad85-a147319a5250","block_type":"box","text":", each Business Day as of","page_number":125,"box":{"x":366,"y":707,"width":186,"height":11}},{"id":"a3714a76-b2b2-4153-8d34-2d0821d33725","block_type":"box","text":"the end of the preceding Business Day):","page_number":125,"box":{"x":240,"y":722,"width":285,"height":11}},{"id":"d5b4c0d4-967c-4ee6-bb53-46e380e26601","block_type":"box","text":"•","page_number":125,"box":{"x":234,"y":740,"width":4,"height":3}},{"id":"c5b05595-df2d-4c19-abf1-9ccf1d4a7e8a","block_type":"box","text":"Fund SEC yields, WAM (required monthly),","page_number":125,"box":{"x":242,"y":737,"width":295,"height":11}},{"id":"1aef7e8e-19f9-4e1d-af8c-55b6f2475edb","block_type":"box","text":"WAL (required monthly), fund size and share","page_number":125,"box":{"x":240,"y":752,"width":314,"height":11}},{"id":"b0b50af4-a473-4efc-94cd-39162e47e167","block_type":"box","text":"class size.","page_number":125,"box":{"x":241,"y":767,"width":73,"height":9}},{"id":"3eefa441-3907-4f90-93b6-de79d281b6aa","block_type":"box","text":"May disclose to shareholders, prospective","page_number":125,"box":{"x":578,"y":465,"width":300,"height":11}},{"id":"098d82d5-de5f-4bdd-ab55-4678d07b2375","block_type":"box","text":"shareholders, intermediaries, consultants","page_number":125,"box":{"x":578,"y":480,"width":297,"height":10}},{"id":"bf780521-3ca0-461e-89d3-af4e0e5c5cac","block_type":"box","text":"and third party data providers. If Portfolio","page_number":125,"box":{"x":578,"y":495,"width":294,"height":11}},{"id":"a4707808-b1b8-471c-afb3-5237d71b9095","block_type":"box","text":"Characteristics are disclosed to one party,","page_number":125,"box":{"x":578,"y":510,"width":300,"height":11}},{"id":"5ee77338-a3c2-407d-8afc-022e79718e40","block_type":"box","text":"they must also be disclosed to all other","page_number":125,"box":{"x":577,"y":526,"width":283,"height":10}},{"id":"96ad5ed1-2d25-4710-934f-b4e5ef7c8a4d","block_type":"box","text":"parties requesting the same information.","page_number":125,"box":{"x":578,"y":540,"width":291,"height":12}},{"id":"dbea5117-4cb6-4697-83a7-57fa8571499f","block_type":"box","text":"2","page_number":125,"box":{"x":69,"y":785,"width":3,"height":3}},{"id":"0bf87ee2-e651-4590-9ab8-c372dbd7d6ca","block_type":"box","text":"BlackRock Short Obligations Fund","page_number":125,"box":{"x":77,"y":785,"width":200,"height":9}},{"id":"9cee1372-0dd5-404c-8e91-5f309acc4674","block_type":"box","text":". Fund’s holdings may be disclosed in accordance with the frequency for money market funds.","page_number":125,"box":{"x":278,"y":785,"width":534,"height":9}},{"id":"74dbf37d-6a6c-4657-8968-13a1324613ba","block_type":"box","text":"3","page_number":125,"box":{"x":69,"y":800,"width":3,"height":3}},{"id":"6bf24d04-737e-475e-b1cb-47a91540c8c0","block_type":"box","text":"Circle Reserve Fund Exception","page_number":125,"box":{"x":76,"y":800,"width":179,"height":9}},{"id":"6da49318-8666-4452-beda-1b694e3872d5","block_type":"box","text":": Information on portfolio holdings and certain portfolio characteristics of the Circle Reserve Fund of BlackRock","page_number":125,"box":{"x":257,"y":800,"width":634,"height":9}},{"id":"ae89d971-f3e6-41dd-be24-d770d14b7b48","block_type":"box","text":"Funds","page_number":125,"box":{"x":69,"y":813,"width":33,"height":7}},{"id":"8a8b7803-481f-4be3-a7f1-640cd3f87805","block_type":"box","text":"SM","page_number":125,"box":{"x":103,"y":813,"width":8,"height":3}},{"id":"3b71b0ea-a1df-4d95-ab74-8a69b2c969af","block_type":"box","text":"may be made available to the shareholders of the Fund, upon request, on a more frequent basis as may be deemed appropriate by","page_number":125,"box":{"x":117,"y":812,"width":748,"height":9}},{"id":"08376d1c-ea6c-4120-a2a9-e6e111558c23","block_type":"box","text":"BlackRock from time-to-time.","page_number":125,"box":{"x":69,"y":825,"width":162,"height":7}},{"id":"a36f6367-2156-4c60-be69-c3cbfff19cef","block_type":"box","text":"Guidelines for Confidential and Non-Material Information.","page_number":125,"box":{"x":102,"y":848,"width":404,"height":9}},{"id":"39681283-cf3e-4593-9b36-3b42894daef5","block_type":"box","text":"Confidential Information may be disclosed to the","page_number":125,"box":{"x":512,"y":848,"width":346,"height":12}},{"id":"9dd21730-2a53-41b2-ba2e-73a999e8dd5c","block_type":"box","text":"Fund’s Board of Directors and its counsel, outside counsel for the Fund, the Fund’s auditors and to certain third-party","page_number":125,"box":{"x":70,"y":863,"width":839,"height":12}},{"id":"521749c5-d546-4ec2-98aa-0d17c8476c26","block_type":"box","text":"service providers (","page_number":125,"box":{"x":69,"y":879,"width":130,"height":11}},{"id":"b889b156-1c92-4d56-ae3a-e5036422e157","block_type":"box","text":"e.g.","page_number":125,"box":{"x":201,"y":880,"width":25,"height":10}},{"id":"837fc337-5b59-4bfc-bbdb-ed77e10746c7","block_type":"box","text":", Fund administrator, Fund custodian, proxy voting service), securities lending borrowers,","page_number":125,"box":{"x":228,"y":879,"width":630,"height":11}},{"id":"f181eb91-b8a1-43a5-84f6-736f53df8922","block_type":"box","text":"broker-dealers that are fund counterparties and shareholders and their representatives that participate in applicable","page_number":125,"box":{"x":69,"y":894,"width":829,"height":11}},{"id":"dda55bf4-4192-429b-8077-e6c321be32bd","block_type":"box","text":"redemptions in kind. Non-disclosure or confidentiality agreements will be in place with such service providers,","page_number":125,"box":{"x":69,"y":909,"width":781,"height":11}},{"id":"2d9b5f25-2745-448d-b99d-14544152070c","block_type":"box","text":"II-87","page_number":125,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2607adbc-eea7-4e3b-ab0c-b40935d3b932","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":125,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"612851d5-e857-45f5-9a9c-c18baf8562bf","block_type":"box","text":"borrowers, and broker-dealers. With respect to Confidential Information, the Fund’s CCO or his or her designee may","page_number":126,"box":{"x":69,"y":45,"width":823,"height":11}},{"id":"2c223c37-6f74-44a1-8c6f-76f7380c475c","block_type":"box","text":"authorize the following, subject in the case of (ii) and (iii) to a confidentiality or non-disclosure arrangement:","page_number":126,"box":{"x":69,"y":60,"width":765,"height":11}},{"id":"6bb35844-cd23-47ef-a5da-d7f7327d7431","block_type":"box","text":"(i) the preparation and posting of the Fund’s Portfolio Holdings and/or Portfolio Characteristics to its website","page_number":126,"box":{"x":102,"y":80,"width":787,"height":11}},{"id":"20dc08bd-ff13-4e03-ae70-650090af9f1a","block_type":"box","text":"on a more frequent basis than authorized above;","page_number":126,"box":{"x":131,"y":95,"width":346,"height":11}},{"id":"f1d7cef4-5380-4156-a90a-f4b6352a09c1","block_type":"box","text":"(ii) the disclosure of the Fund’s Portfolio Holdings to third-party service providers not noted above; and","page_number":126,"box":{"x":102,"y":115,"width":738,"height":11}},{"id":"208ceab4-b9d9-43b6-8f39-545384bcd417","block_type":"box","text":"(iii) the disclosure of the Fund’s Portfolio Holdings and/or Portfolio Characteristics to other parties for legitimate","page_number":126,"box":{"x":102,"y":135,"width":804,"height":12}},{"id":"ec732282-f1c4-45ae-b272-128bec038568","block_type":"box","text":"business purposes.","page_number":126,"box":{"x":131,"y":151,"width":138,"height":10}},{"id":"3b48e4e0-3ba0-4c54-ba9d-5966a3981639","block_type":"box","text":"Fact Sheets and Repor ts","page_number":126,"box":{"x":102,"y":173,"width":177,"height":11}},{"id":"53bb4643-79ae-42fe-99cb-c19da7e3fa16","block_type":"box","text":"•","page_number":126,"box":{"x":102,"y":196,"width":6,"height":5}},{"id":"0f229563-75d0-401d-980a-a6cadf4ac4a7","block_type":"box","text":"Fund Fact Sheets are available to shareholders, prospective shareholders, intermediaries and consultants","page_number":126,"box":{"x":135,"y":193,"width":756,"height":11}},{"id":"31c14273-deb8-46b5-b217-03e31c80f8f7","block_type":"box","text":"on a monthly or quarterly basis no earlier than the fifth calendar day after the end of a month or quarter.","page_number":126,"box":{"x":134,"y":208,"width":744,"height":12}},{"id":"9deafca8-4d42-494e-a8a7-aecb2064a0dc","block_type":"box","text":"Other Information.","page_number":126,"box":{"x":102,"y":231,"width":128,"height":9}},{"id":"a6fdaace-b385-4811-a4b2-de2005ddb797","block_type":"box","text":"The Policy shall also apply to other Confidential Information of a Fund such as performance","page_number":126,"box":{"x":236,"y":231,"width":651,"height":11}},{"id":"21367656-7002-4a69-b985-65838dcfc4c9","block_type":"box","text":"attribution analyses or security-specific information (","page_number":126,"box":{"x":69,"y":246,"width":372,"height":11}},{"id":"44c89e19-9bea-4acf-8ccd-710583384b1e","block_type":"box","text":"e.g.","page_number":126,"box":{"x":442,"y":248,"width":25,"height":9}},{"id":"59351edd-2dd5-482a-9171-669e5947c3aa","block_type":"box","text":", information about Fund holdings where an issuer has been","page_number":126,"box":{"x":470,"y":246,"width":427,"height":11}},{"id":"424c837d-0c06-454f-a0dd-7558e6f0c0cc","block_type":"box","text":"downgraded, been acquired or declared bankruptcy).","page_number":126,"box":{"x":69,"y":262,"width":372,"height":11}},{"id":"18671039-19c0-4642-b9cc-40767ea01c0b","block_type":"box","text":"Data on NAVs, asset levels (by total Fund and share class), accruals, yields, capital gains, dividends and fund","page_number":126,"box":{"x":102,"y":284,"width":781,"height":11}},{"id":"a5f4cfd6-41c3-40ad-8921-a7e4b763966f","block_type":"box","text":"returns (net of fees by share class) are generally available to shareholders, prospective shareholders, consultants,","page_number":126,"box":{"x":69,"y":299,"width":818,"height":11}},{"id":"3c778f87-f61e-4ea0-822d-16b732f3b45b","block_type":"box","text":"and third-party data providers upon request, as soon as such data is available.","page_number":126,"box":{"x":69,"y":314,"width":562,"height":11}},{"id":"6c6abb38-d321-4a9a-8f35-f2568c24123c","block_type":"box","text":"Contact Information.","page_number":126,"box":{"x":102,"y":337,"width":144,"height":9}},{"id":"24e27697-b269-4f84-ae97-aea342e9ca2d","block_type":"box","text":"For information about portfolio holdings and characteristics, BlackRock fund shareholders","page_number":126,"box":{"x":253,"y":337,"width":639,"height":11}},{"id":"409027e0-3abf-43bd-af20-83ec12bd6a41","block_type":"box","text":"and prospective investors should call the number set out on the back cover of the Prospectus.","page_number":126,"box":{"x":69,"y":352,"width":672,"height":11}},{"id":"e86e972a-78a2-4756-bf6a-6bd300d706b4","block_type":"box","text":"Compensation.","page_number":126,"box":{"x":102,"y":375,"width":105,"height":11}},{"id":"5fb60d81-335c-4a4a-b71e-c7b4ee9e6d1a","block_type":"box","text":"Neither a Fund, a service provider nor any of their affiliated persons (as that term is defined in","page_number":126,"box":{"x":215,"y":375,"width":672,"height":11}},{"id":"a1703ec9-934d-4275-912f-3e8ce122ccdd","block_type":"box","text":"the Investment Company Act) shall receive compensation in any form in connection with the disclosure of information","page_number":126,"box":{"x":68,"y":390,"width":837,"height":11}},{"id":"3268ef40-03b5-4cc4-8321-06ebb377c8fb","block_type":"box","text":"about such Fund’s Portfolio Holdings or Portfolio Characteristics.","page_number":126,"box":{"x":69,"y":405,"width":461,"height":11}},{"id":"6bab60a4-e819-4872-8f84-79e681bdc21e","block_type":"box","text":"Ongoing Arrangements.","page_number":126,"box":{"x":102,"y":428,"width":164,"height":11}},{"id":"12b35a9c-3104-43bc-949d-b3c1c3ad4f64","block_type":"box","text":"The Manager has entered into ongoing agreements to provide selective disclosure of","page_number":126,"box":{"x":272,"y":428,"width":605,"height":11}},{"id":"889ce71a-c9f1-4dd9-848c-64b3c2807bd3","block_type":"box","text":"Fund Portfolio Holdings to the following persons or entities:","page_number":126,"box":{"x":70,"y":443,"width":420,"height":11}},{"id":"ff628003-0a5d-4937-ade0-ddce84492c2e","block_type":"box","text":"1. Fund’s Board of Directors and, if necessary, independent Directors’ counsel and Fund counsel.","page_number":126,"box":{"x":70,"y":463,"width":707,"height":11}},{"id":"9e1e5321-ebcf-445e-9dae-bd7c926e9e27","block_type":"box","text":"2. Fund’s Transfer Agent.","page_number":126,"box":{"x":69,"y":483,"width":190,"height":11}},{"id":"3f16b36b-f168-4205-919b-263692bef877","block_type":"box","text":"3. Fund’s Custodian.","page_number":126,"box":{"x":69,"y":503,"width":160,"height":9}},{"id":"acc6be05-d629-43cd-a206-a8948e40e8dc","block_type":"box","text":"4. Fund’s Administrator, if applicable.","page_number":126,"box":{"x":69,"y":523,"width":278,"height":11}},{"id":"0937a161-77bb-4b7b-9d3c-968d80397469","block_type":"box","text":"5. Fund’s independent registered public accounting firm.","page_number":126,"box":{"x":69,"y":543,"width":414,"height":12}},{"id":"17b4d4d9-ad8e-4677-b9dd-bf62499b662b","block_type":"box","text":"6. Fund’s accounting services provider.","page_number":126,"box":{"x":69,"y":564,"width":291,"height":11}},{"id":"f4aeba12-409f-41ef-8749-a85e31beb947","block_type":"box","text":"7. Independent rating agencies — Lipper Inc., Moody’s, Fitch.","page_number":126,"box":{"x":69,"y":584,"width":451,"height":11}},{"id":"d5220a8d-1d45-424c-9126-fc9d8b5a7fa7","block_type":"box","text":"8. Information aggregators — S&P Global, Bloomberg, eVestments Alliance and Informa/PSN Investment Solutions.","page_number":126,"box":{"x":69,"y":604,"width":837,"height":11}},{"id":"d26e6730-9e90-4a76-8a72-253eb69191fe","block_type":"box","text":"9. Pricing Vendors — Refinitiv Limited, Refinitiv US LLC, ICE Data Services, Bloomberg, IHS Markit, JP Morgan","page_number":126,"box":{"x":69,"y":624,"width":796,"height":11}},{"id":"ac08a990-355f-49d7-be11-2a3e564b5c11","block_type":"box","text":"Pricing-Direct, Valuation Research Corporation, Murray, Devine & Co., Inc. and WM Company PLC.","page_number":126,"box":{"x":102,"y":639,"width":690,"height":12}},{"id":"e5f03672-f7b9-4966-b92e-ac1bd5461d07","block_type":"box","text":"10. Valuation Providers — Houlihan Lokey, Lincoln Financial, Chatham and Kroll.","page_number":126,"box":{"x":70,"y":660,"width":573,"height":11}},{"id":"a898310a-67be-4fff-a026-10c1f3fa1994","block_type":"box","text":"11. Third-party feeder funds — Stock Index Fund, a series of Homestead Funds, Inc. and Transamerica Stock Index,","page_number":126,"box":{"x":70,"y":680,"width":827,"height":11}},{"id":"668b0c75-c50b-4ecd-8a37-c58998de60b0","block_type":"box","text":"a series of Transamerica Funds and their respective boards, sponsors, administrators and other service","page_number":126,"box":{"x":102,"y":695,"width":741,"height":11}},{"id":"8c8ff923-aa0d-4141-9620-a4a0540896e5","block_type":"box","text":"providers.","page_number":126,"box":{"x":102,"y":710,"width":68,"height":11}},{"id":"b107c5dc-0652-45e9-aa7e-46cb30ba8378","block_type":"box","text":"12. Affiliated feeder funds — iShares S&P 500 Index Fund, iShares U.S. Aggregate Bond Index Fund, Treasury","page_number":126,"box":{"x":70,"y":730,"width":790,"height":11}},{"id":"51748738-9324-442a-a017-59b4619d5ce5","block_type":"box","text":"Money Market Fund (Cayman) and their respective boards, sponsors, administrators and other service providers.","page_number":126,"box":{"x":102,"y":745,"width":803,"height":11}},{"id":"0ff39f46-14b5-43f3-b142-f8d1e112f09a","block_type":"box","text":"13. Other — Investment Company Institute, Goldman Sachs Asset Management, L.P., JPMorgan Chase Bank, N.A.,","page_number":126,"box":{"x":70,"y":765,"width":821,"height":12}},{"id":"5d1713b4-b11a-4023-9d4e-eca61059d144","block_type":"box","text":"Mizuho Asset Management Co., Ltd., Nationwide Fund Advisors, State Street Bank and Trust Company,","page_number":126,"box":{"x":102,"y":780,"width":732,"height":12}},{"id":"36097275-eccd-4c59-90cf-580d99434018","block_type":"box","text":"Donnelley Financial Solutions, Inc. and Silicon Valley Bank.","page_number":126,"box":{"x":102,"y":796,"width":416,"height":11}},{"id":"277447e6-cf8f-4db4-af70-c21dee83f4c3","block_type":"box","text":"In connection with effecting redemptions in kind, the Fund or the Manager may provide information about a","page_number":126,"box":{"x":102,"y":818,"width":762,"height":11}},{"id":"6b6245c0-516e-4b84-b28f-14efa8cde3de","block_type":"box","text":"Fund’s portfolio holdings, such as the securities to be delivered in connection with the redemption in kind, to a","page_number":126,"box":{"x":70,"y":833,"width":790,"height":12}},{"id":"fa0615a3-e387-4738-b54a-4aaeffae13e2","block_type":"box","text":"redeeming shareholder. Typically, such shareholder will be subject to a non-disclosure agreement or other duty to","page_number":126,"box":{"x":69,"y":849,"width":806,"height":11}},{"id":"c7e45303-9676-4d02-b36e-0b6970bff248","block_type":"box","text":"keep the information confidential.","page_number":126,"box":{"x":69,"y":863,"width":238,"height":11}},{"id":"d3bcad14-2392-42ed-95c9-27013ec58685","block_type":"box","text":"With respect to each such arrangement, a Fund has a legitimate business purpose for the release of","page_number":126,"box":{"x":101,"y":886,"width":720,"height":12}},{"id":"108dfd57-6ae3-435e-bb45-fcbba59fc31d","block_type":"box","text":"information. The release of the information is subject to confidential treatment to prohibit the entity from sharing with","page_number":126,"box":{"x":70,"y":901,"width":836,"height":12}},{"id":"449a745a-d239-4eac-b3cb-d9deaefbc5af","block_type":"box","text":"II-88","page_number":126,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"093073de-bac0-4aa0-84b0-e134be217909","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":126,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"587bbcb4-d3f2-44c0-8d81-78daafeff3cf","block_type":"box","text":"an unauthorized source. The Funds, BlackRock and their affiliates do not receive any compensation or other","page_number":127,"box":{"x":69,"y":45,"width":770,"height":11}},{"id":"9816fe2b-d560-47ac-9244-47e39ea679c1","block_type":"box","text":"consideration in connection with such arrangements.","page_number":127,"box":{"x":69,"y":60,"width":375,"height":11}},{"id":"de4c3167-3fce-4c24-812b-61f4f59d14a8","block_type":"box","text":"The Funds and the Manager may monitor, to the extent possible, the use of Confidential Information by the","page_number":127,"box":{"x":101,"y":82,"width":762,"height":12}},{"id":"ec119c7a-8f5a-4a11-84a7-f40b07f4af57","block_type":"box","text":"individuals or firms to which it has been disclosed. To do so, in addition to the requirements of any applicable","page_number":127,"box":{"x":70,"y":98,"width":781,"height":11}},{"id":"c75146f2-bb9b-4693-ab03-cf4fcfd30628","block_type":"box","text":"confidentiality agreement and/or the terms and conditions of the Fund’s and Manager’s Codes of Ethics, the","page_number":127,"box":{"x":69,"y":113,"width":775,"height":11}},{"id":"d3f4b0df-cf28-4bc6-96ce-8d2bf15fe58d","block_type":"box","text":"Manager’s compliance personnel under the supervision of the Fund’s CCO, monitor the Manager’s securities trading","page_number":127,"box":{"x":70,"y":128,"width":830,"height":11}},{"id":"df159676-a3f0-455c-8ea2-08706f46cbca","block_type":"box","text":"desks to determine whether individuals or firms who have received Confidential Information have made any trades on","page_number":127,"box":{"x":69,"y":143,"width":836,"height":11}},{"id":"de7bd8ca-4e63-4a07-ab96-a8c8e6a32c8c","block_type":"box","text":"the basis of that information. In addition, the Manager maintains an internal restricted list to prevent trading by the","page_number":127,"box":{"x":68,"y":158,"width":822,"height":11}},{"id":"8ed7db18-7763-4a32-8a61-ff405a554010","block_type":"box","text":"personnel of the Manager or its affiliates in securities — including securities held by a Fund — about which the","page_number":127,"box":{"x":70,"y":173,"width":793,"height":11}},{"id":"8ec7be83-c969-42e3-ac97-d4e5bdac5b81","block_type":"box","text":"Manager has Confidential Information. There can be no assurance, however, that the Fund’s policies and procedures","page_number":127,"box":{"x":70,"y":188,"width":831,"height":12}},{"id":"76f20de6-c07b-4aa8-b343-8bfb330d0efc","block_type":"box","text":"with respect to the selective disclosure of Portfolio Holdings will prevent the misuse of such information by","page_number":127,"box":{"x":68,"y":203,"width":764,"height":12}},{"id":"48ab7fc1-9934-4ba3-9fd7-7dde0f17308b","block_type":"box","text":"individuals or firms that receive such information.","page_number":127,"box":{"x":70,"y":218,"width":351,"height":9}},{"id":"d456346c-4fc2-435d-a0c6-c4cb0feb0b59","block_type":"box","text":"Potential Conflicts of Interest","page_number":127,"box":{"x":69,"y":249,"width":216,"height":9}},{"id":"314c3074-dbb6-42bf-ad9a-6c0200b6679c","block_type":"box","text":"Cer tain activities of BlackRock, Inc., BlackRock Advisors, LLC, BlackRock Fund Advisors and the other","page_number":127,"box":{"x":102,"y":271,"width":727,"height":11}},{"id":"f467eb38-abf2-423e-ab88-d563848d2deb","block_type":"box","text":"subsidiaries of BlackRock, Inc. (collectively referred to in this section as “BlackRock”) and their respective directors,","page_number":127,"box":{"x":69,"y":286,"width":829,"height":12}},{"id":"6ccaee9f-3986-42c2-9bd4-f51e84ef914e","block_type":"box","text":"officers or employees, with respect to the Funds and/or other accounts managed by BlackRock, may give rise to","page_number":127,"box":{"x":69,"y":302,"width":802,"height":11}},{"id":"5bf3949f-63b0-4e24-96c6-521df45c8cef","block_type":"box","text":"actual or perceived conflicts of interest such as those described below.","page_number":127,"box":{"x":69,"y":317,"width":507,"height":11}},{"id":"f9edc3df-e234-4d72-a470-1a5ae83f5b04","block_type":"box","text":"BlackRock is one of the world’s largest asset management firms. BlackRock, its subsidiaries and their","page_number":127,"box":{"x":102,"y":339,"width":731,"height":12}},{"id":"050902b0-cbb2-46eb-b26d-bdae5b589a0b","block_type":"box","text":"respective directors, officers and employees, including the business units or entities and personnel who may be","page_number":127,"box":{"x":69,"y":355,"width":799,"height":11}},{"id":"d78cb36c-2127-4bd2-88b6-2de3c8ae6c67","block_type":"box","text":"involved in the investment activities and business operations of a Fund, are engaged worldwide in businesses,","page_number":127,"box":{"x":70,"y":370,"width":786,"height":11}},{"id":"806a9162-1bed-4b3d-a03b-481b92768069","block_type":"box","text":"including managing equities, fixed income securities, cash and alternative investments, and other financial services,","page_number":127,"box":{"x":70,"y":385,"width":829,"height":11}},{"id":"7c9a24a2-9c54-4a08-8ea4-7d74e2f999e2","block_type":"box","text":"and have interests other than that of managing the Funds. These are considerations of which investors in a Fund","page_number":127,"box":{"x":69,"y":400,"width":804,"height":11}},{"id":"dda074f2-2bab-4b7d-9e73-b45a30324ae8","block_type":"box","text":"should be aware, and which may cause conflicts of interest that could disadvantage a Fund and its shareholders.","page_number":127,"box":{"x":69,"y":415,"width":806,"height":11}},{"id":"5f88842f-5470-4bd0-9c2d-58238c6fa686","block_type":"box","text":"These businesses and interests include potential multiple advisory, transactional, financial and other","page_number":127,"box":{"x":101,"y":438,"width":722,"height":11}},{"id":"6e45168c-c821-4036-9520-3dd618f5f965","block_type":"box","text":"relationships with, or interests in companies and interests in securities or other instruments that may be purchased","page_number":127,"box":{"x":69,"y":453,"width":827,"height":11}},{"id":"113fad6a-d953-47cd-9f6e-3f34dd2e0a6a","block_type":"box","text":"or sold by a Fund.","page_number":127,"box":{"x":69,"y":468,"width":125,"height":11}},{"id":"0fc498f6-cedf-4292-b531-262a994773ee","block_type":"box","text":"BlackRock may have proprietary interests in, and may manage or advise with respect to, accounts or funds","page_number":127,"box":{"x":102,"y":491,"width":762,"height":11}},{"id":"03ce3721-18ef-44ba-8090-2735c02fb1c6","block_type":"box","text":"(including separate accounts and other funds and collective investment vehicles) that have investment objectives","page_number":127,"box":{"x":69,"y":506,"width":806,"height":11}},{"id":"ca7a2305-d902-48c4-a3ef-35f7c393cae9","block_type":"box","text":"identical or similar to those of a Fund and/or that engage in transactions in the same types of securities, currencies","page_number":127,"box":{"x":70,"y":521,"width":828,"height":11}},{"id":"5e3471a4-33ff-41e6-84c5-94f60de976c8","block_type":"box","text":"and instruments as the Fund. Such other funds or accounts may offer exposure to strategies that are identical or","page_number":127,"box":{"x":69,"y":536,"width":808,"height":11}},{"id":"145bf9d8-9788-4721-bf09-d82be09ddb4b","block_type":"box","text":"substantially similar to those of a Fund but with different fees and expenses, governance and structures, and/or","page_number":127,"box":{"x":69,"y":551,"width":803,"height":11}},{"id":"fa0f76c8-901a-4aad-a403-9e88e833c805","block_type":"box","text":"services provided by BlackRock","page_number":127,"box":{"x":69,"y":566,"width":224,"height":11}},{"id":"82a14047-e0b7-42a2-a28c-c0e5c3e69e37","block_type":"box","text":".","page_number":127,"box":{"x":295,"y":574,"width":2,"height":1}},{"id":"3e1102ab-b8fe-45ac-aa77-e654be87f161","block_type":"box","text":"BlackRock is also a major participant in the global currency, equities, swap and fixed","page_number":127,"box":{"x":304,"y":566,"width":603,"height":11}},{"id":"75bb8ac5-69a6-4075-8794-eefc72623054","block_type":"box","text":"income markets, in each case, for the accounts of clients and, in some cases, on a proprietary basis. As such,","page_number":127,"box":{"x":70,"y":581,"width":791,"height":11}},{"id":"3704e8cc-049d-47f4-ba8f-fe36ff53ab35","block_type":"box","text":"BlackRock is or may be actively engaged in transactions in the same securities, currencies, and instruments in which","page_number":127,"box":{"x":70,"y":597,"width":835,"height":11}},{"id":"0370b0d4-2adb-4dde-9a7d-83afe2ad9c95","block_type":"box","text":"a Fund invests.","page_number":127,"box":{"x":69,"y":612,"width":106,"height":9}},{"id":"4080a118-5b5c-4e16-9607-837b0c237e23","block_type":"box","text":"Such activities could affect the prices and availability of the securities, currencies, and instruments in which a","page_number":127,"box":{"x":102,"y":634,"width":785,"height":11}},{"id":"717e596b-5369-4236-b18d-21797d3a7adb","block_type":"box","text":"Fund invests, which could have an adverse impact on a Fund’s performance. Such transactions, particularly in","page_number":127,"box":{"x":70,"y":649,"width":785,"height":12}},{"id":"522a11ac-f794-4ecf-a49f-f89f652a9644","block_type":"box","text":"respect of most proprietary accounts or client accounts, will be executed independently of a Fund’s transactions and","page_number":127,"box":{"x":69,"y":664,"width":832,"height":12}},{"id":"3b20153c-9b0d-4a6e-b3ad-88db65c5e50b","block_type":"box","text":"thus at prices or rates that may be more or less favorable than those obtained by the Fund.","page_number":127,"box":{"x":68,"y":680,"width":652,"height":11}},{"id":"b7593d3b-da7b-4175-b877-65e7155fc39e","block_type":"box","text":"In addition, the portfolio holdings of certain BlackRock-advised investment vehicles managed in an identical or","page_number":127,"box":{"x":102,"y":702,"width":787,"height":12}},{"id":"cc1ffa96-dcba-4c15-bcde-aa5f928b5cf1","block_type":"box","text":"substantially similar manner as certain Funds are made publicly available on a more timely basis than the applicable","page_number":127,"box":{"x":69,"y":718,"width":832,"height":11}},{"id":"b7cd887f-4fce-4880-9a41-5ddb445ee0f6","block_type":"box","text":"Fund. In some cases, such portfolio holdings are made publicly available on a daily basis. While not expected, it is","page_number":127,"box":{"x":70,"y":732,"width":816,"height":12}},{"id":"3524e36a-9513-4aaa-b60b-caeba5b54f3f","block_type":"box","text":"possible that a recipient of portfolio holdings information for such an investment vehicle could cause harm to a Fund","page_number":127,"box":{"x":70,"y":748,"width":831,"height":11}},{"id":"7e102e3f-4264-4ae5-b8c8-4641a6d7f705","block_type":"box","text":"that is managed in an identical or substantially similar manner, including by trading ahead of or against such Fund","page_number":127,"box":{"x":68,"y":763,"width":813,"height":11}},{"id":"b542e0be-c642-41f8-b9d5-2ca19ecb3890","block_type":"box","text":"based on the information received.","page_number":127,"box":{"x":69,"y":778,"width":247,"height":9}},{"id":"dd501531-2884-47cc-8064-192be57e75e6","block_type":"box","text":"When BlackRock seeks to purchase or sell the same assets for client accounts, including a Fund, the assets","page_number":127,"box":{"x":101,"y":801,"width":777,"height":11}},{"id":"05a7ac68-f0a0-4476-82b7-329892a7736c","block_type":"box","text":"actually purchased or sold may be allocated among the accounts on a basis determined in its good faith discretion to","page_number":127,"box":{"x":69,"y":816,"width":838,"height":11}},{"id":"60e55505-7769-4bce-b485-b68ead749484","block_type":"box","text":"be equitable. In some cases, this system may adversely affect the size or price of the assets purchased or sold for a","page_number":127,"box":{"x":69,"y":831,"width":835,"height":11}},{"id":"ff9573e9-6fbc-4502-b956-66567b293cf5","block_type":"box","text":"Fund. In addition, transactions in investments by one or more other accounts managed by BlackRock may have the","page_number":127,"box":{"x":70,"y":846,"width":817,"height":11}},{"id":"298efac4-6802-44b2-84de-8805cb545bfb","block_type":"box","text":"effect of diluting or otherwise disadvantaging the values, prices or investment strategies of a Fund, particularly, but","page_number":127,"box":{"x":69,"y":861,"width":823,"height":11}},{"id":"b297cdd4-4471-4664-bc87-841690c43c96","block_type":"box","text":"not limited to, with respect to small capitalization, emerging market or less liquid strategies. This may occur with","page_number":127,"box":{"x":69,"y":876,"width":803,"height":11}},{"id":"e89ba856-d933-4acd-b495-8820d1a495e0","block_type":"box","text":"respect to BlackRock-advised accounts when investment decisions regarding a Fund are based on research or other","page_number":127,"box":{"x":69,"y":891,"width":827,"height":12}},{"id":"cb5e5cd1-1606-43a0-b43f-0d6ccaa81cd6","block_type":"box","text":"information that is also used to support decisions for other accounts. When BlackRock implements a portfolio","page_number":127,"box":{"x":70,"y":906,"width":785,"height":11}},{"id":"47fc9934-d04d-49a7-b7f4-95a8d09656ee","block_type":"box","text":"II-89","page_number":127,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ccd53a6e-dbd6-43f5-9ae7-060f34c39b9c","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":127,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"643db7e2-01e7-487e-add2-50e06775c14b","block_type":"box","text":"decision or strategy on behalf of another account ahead of, or contemporaneously with, similar decisions or","page_number":128,"box":{"x":69,"y":45,"width":767,"height":11}},{"id":"fc3f1be0-29e5-4b15-931b-a1dce6f834e5","block_type":"box","text":"strategies for a Fund, market impact, liquidity constraints, or other factors could result in the Fund receiving less","page_number":128,"box":{"x":69,"y":60,"width":802,"height":11}},{"id":"314f0630-6ac5-4f4d-9216-01f9717f03bd","block_type":"box","text":"favorable trading results and the costs of implementing such decisions or strategies could be increased or the Fund","page_number":128,"box":{"x":68,"y":75,"width":827,"height":11}},{"id":"0fb690b5-a1b5-4be5-9c32-3760324a7740","block_type":"box","text":"could otherwise be disadvantaged. BlackRock may, in certain cases, elect to implement internal policies and","page_number":128,"box":{"x":69,"y":90,"width":776,"height":11}},{"id":"30596413-b38b-4cd3-9793-5d52b8193103","block_type":"box","text":"procedures designed to limit such consequences, which may cause a Fund to be unable to engage in certain","page_number":128,"box":{"x":70,"y":105,"width":774,"height":11}},{"id":"3f13f338-5b2b-43b3-8fcf-53854b1fe77b","block_type":"box","text":"activities, including purchasing or disposing of securities, when it might otherwise be desirable for it to do so.","page_number":128,"box":{"x":69,"y":120,"width":781,"height":12}},{"id":"0947804c-4bf6-4a26-9844-b90c0ec900ff","block_type":"box","text":"Conflicts may also arise because portfolio decisions regarding a Fund may benefit other accounts managed by","page_number":128,"box":{"x":69,"y":135,"width":787,"height":12}},{"id":"74c12b2d-b0b9-4f8d-823c-7863da28d1a5","block_type":"box","text":"BlackRock. For example, the sale of a long position or establishment of a short position by a Fund may impair the","page_number":128,"box":{"x":70,"y":150,"width":809,"height":12}},{"id":"0a3f0115-f921-43e8-946e-58647c86a7b1","block_type":"box","text":"price of the same security sold short by (and therefore benefit) BlackRock or its other accounts or funds, and the","page_number":128,"box":{"x":70,"y":166,"width":805,"height":11}},{"id":"378efcdc-a7ce-45ae-8fd1-525eb41e0960","block_type":"box","text":"purchase of a security or covering of a short position in a security by a Fund may increase the price of the same","page_number":128,"box":{"x":70,"y":181,"width":797,"height":11}},{"id":"9448a878-b8e2-401a-aa9a-779553f36964","block_type":"box","text":"security held by (and therefore benefit) BlackRock or its other accounts or funds.","page_number":128,"box":{"x":69,"y":196,"width":573,"height":11}},{"id":"f704b2cf-21e8-4ed4-aeab-ffe8b4c37407","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":128,"box":{"x":102,"y":218,"width":797,"height":12}},{"id":"1a42645b-6426-4461-a33b-243cf3af92dd","block_type":"box","text":"extend credit to different parts of the capital structure of a single issuer. BlackRock may pursue rights, provide","page_number":128,"box":{"x":69,"y":234,"width":791,"height":11}},{"id":"84d290ea-4a31-4190-be8b-866c776b9117","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":128,"box":{"x":69,"y":249,"width":835,"height":11}},{"id":"746692b6-ebb8-4bb6-a0b0-15e67b30a83d","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":128,"box":{"x":69,"y":264,"width":812,"height":11}},{"id":"45ad0b35-a358-4308-9508-835563704141","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":128,"box":{"x":69,"y":279,"width":803,"height":11}},{"id":"75c2a36e-a6df-48da-a59b-125570ca1c31","block_type":"box","text":"Funds) hold positions in multiple parts of the capital structure of an issuer, BlackRock may not pursue certain","page_number":128,"box":{"x":70,"y":294,"width":783,"height":11}},{"id":"b4c3effd-e4d6-4cbe-85e5-2181dddb58d4","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":128,"box":{"x":69,"y":309,"width":818,"height":11}},{"id":"3a3bb464-c939-4b39-85d9-55a5c2ab084e","block_type":"box","text":"BlackRock addresses these and other potential conflicts of interest based on the facts and circumstances of","page_number":128,"box":{"x":70,"y":324,"width":777,"height":11}},{"id":"618aff6d-19c8-4875-aef3-0574a271245e","block_type":"box","text":"particular situations. For example, BlackRock may determine to rely on information barriers between different","page_number":128,"box":{"x":70,"y":339,"width":780,"height":12}},{"id":"ff8dafb0-ef53-4b0f-86e0-31ff684dea99","block_type":"box","text":"business units or portfolio management teams. BlackRock may also determine to rely on the actions of similarly","page_number":128,"box":{"x":69,"y":355,"width":802,"height":11}},{"id":"3dc786e9-be84-4fc3-bef3-0746c657294e","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":128,"box":{"x":69,"y":370,"width":817,"height":11}},{"id":"67154af6-55bc-4631-9452-9238b48b2538","block_type":"box","text":"Funds.","page_number":128,"box":{"x":70,"y":385,"width":44,"height":9}},{"id":"4f3ec495-7141-47d1-b990-2d1909d0010c","block_type":"box","text":"In addition, to the extent permitted by applicable law, certain Funds may invest their assets in other funds","page_number":128,"box":{"x":102,"y":407,"width":755,"height":12}},{"id":"6d606d4f-a36c-4c75-bd72-82285316d1bd","block_type":"box","text":"advised by BlackRock, including funds that are managed by one or more of the same portfolio managers, which could","page_number":128,"box":{"x":69,"y":423,"width":836,"height":11}},{"id":"dba035d3-7de7-4517-a40c-8fa66f8d8758","block_type":"box","text":"result in conflicts of interest relating to asset allocation, timing of Fund purchases and redemptions, and increased","page_number":128,"box":{"x":69,"y":438,"width":821,"height":11}},{"id":"c11d4754-5eba-4b86-82d4-c4e097319b48","block_type":"box","text":"remuneration and profitability for BlackRock and/or its personnel, including portfolio managers.","page_number":128,"box":{"x":69,"y":453,"width":679,"height":11}},{"id":"bc606468-ea4d-449b-8408-49d0bc70d2e3","block_type":"box","text":"Third parties, including service providers to BlackRock or the Fund, may sponsor events (including, but not","page_number":128,"box":{"x":101,"y":476,"width":760,"height":11}},{"id":"c8beb4fe-a2ba-4409-9a36-ede5237c4157","block_type":"box","text":"limited to, marketing and promotional activities and presentations, educational training programs and conferences)","page_number":128,"box":{"x":70,"y":491,"width":818,"height":11}},{"id":"0745a29e-6b25-46cf-98d6-8220395c7fb0","block_type":"box","text":"for registered representatives, other professionals and individual investors. There is a potential conflict of interest as","page_number":128,"box":{"x":68,"y":506,"width":836,"height":11}},{"id":"0580f1b4-4027-499b-97ee-a1031bb7b826","block_type":"box","text":"such sponsorships may defray the costs of such activities to BlackRock, and may provide an incentive to BlackRock","page_number":128,"box":{"x":69,"y":521,"width":825,"height":11}},{"id":"c21c1290-9fc6-4db4-8aa5-d546bb7fa762","block_type":"box","text":"to retain such third parties to provide services to the Fund.","page_number":128,"box":{"x":68,"y":536,"width":421,"height":11}},{"id":"c9696136-6450-4545-b615-0af41cdbd189","block_type":"box","text":"In certain circumstances, BlackRock, on behalf of the Funds, may seek to buy from or sell securities to another","page_number":128,"box":{"x":102,"y":559,"width":794,"height":11}},{"id":"7b887c89-2f01-4287-b231-18dec08f694c","block_type":"box","text":"fund or account advised by BlackRock. BlackRock may (but is not required to) effect purchases and sales between","page_number":128,"box":{"x":68,"y":574,"width":817,"height":11}},{"id":"c9d73e9e-d5f3-44a5-93c1-15b3c84c8aa0","block_type":"box","text":"BlackRock clients (“cross trades”), including the Funds, if BlackRock believes such transactions are appropriate","page_number":128,"box":{"x":70,"y":589,"width":797,"height":11}},{"id":"19129af8-bd0b-4047-a0ee-71064abb757a","block_type":"box","text":"based on each party’s investment objectives and guidelines, subject to applicable law and regulation. There may be","page_number":128,"box":{"x":69,"y":604,"width":826,"height":11}},{"id":"fc91977e-fb35-4d0b-af83-686ca69f5d65","block_type":"box","text":"potential conflicts of interest or regulatory issues relating to these transactions which could limit BlackRock’s","page_number":128,"box":{"x":70,"y":619,"width":780,"height":11}},{"id":"e8ec66e5-413c-4f7e-b09e-41b5777b35f8","block_type":"box","text":"decision to engage in these transactions for the Funds. BlackRock may have a potentially conflicting division of","page_number":128,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"1a4313ae-3ada-4407-86f1-42a3d806800a","block_type":"box","text":"loyalties and responsibilities to the parties in such transactions.","page_number":128,"box":{"x":70,"y":650,"width":457,"height":11}},{"id":"e73561cf-d6de-45ae-a505-e184a5708947","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":128,"box":{"x":102,"y":672,"width":784,"height":11}},{"id":"4258767f-85e8-4a70-9919-63a1353b66e1","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":128,"box":{"x":69,"y":687,"width":840,"height":11}},{"id":"a18d6fa6-b915-491a-8e84-d8678e6a0f12","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":128,"box":{"x":70,"y":702,"width":827,"height":12}},{"id":"31df5e9d-a38c-45d4-92fd-b3a8f63fe408","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":128,"box":{"x":70,"y":717,"width":828,"height":12}},{"id":"510c08c4-7750-4951-97c2-de6f877ba960","block_type":"box","text":"case.","page_number":128,"box":{"x":69,"y":735,"width":37,"height":7}},{"id":"c585e4b3-0f8f-4c4d-8fae-769fbda6ddcc","block_type":"box","text":"The results of a Fund’s investment activities may differ significantly from the results achieved by BlackRock for","page_number":128,"box":{"x":101,"y":755,"width":791,"height":11}},{"id":"2ec8588f-4ed4-4866-b56d-768bef39243b","block_type":"box","text":"its proprietary accounts or other accounts (including investment companies or collective investment vehicles) that it","page_number":128,"box":{"x":70,"y":771,"width":824,"height":11}},{"id":"6996aaf2-356e-45c7-a70c-75a52aee1b08","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":128,"box":{"x":69,"y":786,"width":798,"height":11}},{"id":"4690625d-aae7-4cb1-8d46-ca2d9f9800c1","block_type":"box","text":"accounts will achieve investment results that are substantially more or less favorable than the results achieved by a","page_number":128,"box":{"x":69,"y":801,"width":828,"height":11}},{"id":"de91727b-04ac-4f10-8469-6e96e50757b7","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":128,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"950d9563-01d3-4cce-8a22-f319977352da","block_type":"box","text":"accounts managed or advised by BlackRock achieve significant profits. The opposite result is also possible.","page_number":128,"box":{"x":69,"y":831,"width":767,"height":11}},{"id":"5f956ff4-bff4-452c-8001-b72c640c43b3","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":128,"box":{"x":102,"y":853,"width":766,"height":12}},{"id":"5bdf3512-6cbf-412f-92c0-b108505e6e2c","block_type":"box","text":"investment activities because of regulatory, legal or contractual requirements applicable to BlackRock or other","page_number":128,"box":{"x":70,"y":869,"width":786,"height":11}},{"id":"d7e3db7b-04e1-4b5d-956d-44979f5c42d3","block_type":"box","text":"accounts managed or advised by BlackRock, and/or the internal policies of BlackRock designed to comply with such","page_number":128,"box":{"x":69,"y":884,"width":828,"height":11}},{"id":"efb4c12a-de33-4c3f-9cc3-aa557162eee3","block_type":"box","text":"requirements. As a result, there may be periods, for example, when BlackRock will not initiate or recommend certain","page_number":128,"box":{"x":69,"y":899,"width":831,"height":11}},{"id":"94df8847-9bc4-4dde-a075-d1138c3748ec","block_type":"box","text":"II-90","page_number":128,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b19b4410-1867-486b-832d-4a44f5410f7c","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":128,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"93d604c8-5f33-415d-9495-87c5d0d44030","block_type":"box","text":"types of transactions in certain securities or instruments with respect to which BlackRock is performing services or","page_number":129,"box":{"x":68,"y":45,"width":825,"height":11}},{"id":"1b8bf908-17ed-4414-8b99-954addadfc45","block_type":"box","text":"when position limits have been reached. For example, the investment activities of BlackRock for its proprietary","page_number":129,"box":{"x":68,"y":60,"width":790,"height":11}},{"id":"71ca59da-3dfd-42bb-b9e3-b485d18e5139","block_type":"box","text":"accounts and accounts under its management may limit the investment opportunities for a Fund in certain emerging","page_number":129,"box":{"x":69,"y":75,"width":830,"height":11}},{"id":"cdb10b4e-96a3-4506-8594-c2c53fc262ea","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":129,"box":{"x":69,"y":90,"width":827,"height":11}},{"id":"4ab319d9-f3b3-44e3-9378-7bf0cd5ded88","block_type":"box","text":"issuers, by affiliated foreign investors.","page_number":129,"box":{"x":70,"y":105,"width":271,"height":11}},{"id":"2ce8f553-f481-4efd-92f2-89637afe2948","block_type":"box","text":"In connection with its management of a Fund, BlackRock may have access to certain fundamental analysis and","page_number":129,"box":{"x":102,"y":128,"width":792,"height":11}},{"id":"ad9e4a16-2bcc-46c2-bf0b-a332318f98dd","block_type":"box","text":"proprietary technical models developed by BlackRock. BlackRock will not be under any obligation, however, to effect","page_number":129,"box":{"x":70,"y":143,"width":826,"height":11}},{"id":"331446c8-698c-4965-8af6-dff131b6563e","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":129,"box":{"x":68,"y":158,"width":821,"height":11}},{"id":"7d913a7e-0de9-4c9c-9469-80c197b12f6e","block_type":"box","text":"any obligation to make available any information regarding its proprietary activities or strategies, or the activities or","page_number":129,"box":{"x":69,"y":173,"width":821,"height":11}},{"id":"8098d514-e56f-4c07-bd02-6644e4ca01cb","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":129,"box":{"x":69,"y":188,"width":793,"height":12}},{"id":"153b941c-87e7-4f2a-a197-815fbf0b2e3a","block_type":"box","text":"anticipated that BlackRock will have access to such information for the purpose of managing the Fund. The","page_number":129,"box":{"x":69,"y":203,"width":762,"height":12}},{"id":"aafd96b9-375b-4cf8-a404-81befbf299f5","block_type":"box","text":"proprietary activities or portfolio strategies of BlackRock, or the activities or strategies used for accounts managed by","page_number":129,"box":{"x":70,"y":218,"width":839,"height":12}},{"id":"759dd903-f058-4e59-9f48-fe0f724290a9","block_type":"box","text":"BlackRock or other client accounts could conflict with the transactions and strategies employed by BlackRock in","page_number":129,"box":{"x":70,"y":234,"width":795,"height":11}},{"id":"0f8fcb0b-fd16-4e77-b176-cf7cd8f3b13f","block_type":"box","text":"managing a Fund.","page_number":129,"box":{"x":69,"y":249,"width":124,"height":11}},{"id":"eb369bcf-f00b-44fa-bc31-49cd7886f3d6","block_type":"box","text":"The Funds may be included in investment models developed by BlackRock for use by clients and financial","page_number":129,"box":{"x":101,"y":271,"width":751,"height":12}},{"id":"45bb5d3c-c219-4b06-802c-2a38dbcd84e6","block_type":"box","text":"advisors. To the extent clients invest in these investment models and increase the assets under management of the","page_number":129,"box":{"x":69,"y":286,"width":830,"height":12}},{"id":"2bbc998a-ac5e-48a2-9c80-d879aa1f46f1","block_type":"box","text":"Funds, the investment management fee amounts paid by the Funds to BlackRock may also increase. The net asset","page_number":129,"box":{"x":70,"y":302,"width":820,"height":11}},{"id":"8be3ef65-ede8-4634-bb15-3f8c14fab729","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":129,"box":{"x":68,"y":317,"width":785,"height":11}},{"id":"08f19718-83bf-4788-af9b-14d7f66c5d71","block_type":"box","text":"portfolios, as well as by BlackRock itself and by its advisory clients.","page_number":129,"box":{"x":70,"y":332,"width":481,"height":11}},{"id":"71e6d986-a9e1-4f76-8990-d0da921c2e24","block_type":"box","text":"In addition, certain principals and certain employees of a Fund’s investment adviser are also principals or","page_number":129,"box":{"x":102,"y":355,"width":754,"height":11}},{"id":"88763124-a1d7-4d85-ad12-2b833d204536","block_type":"box","text":"employees of other business units or entities within BlackRock. As a result, these principals and employees may","page_number":129,"box":{"x":69,"y":370,"width":804,"height":11}},{"id":"2d7df7ba-6454-439c-b51c-150352f36e79","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":129,"box":{"x":69,"y":385,"width":831,"height":11}},{"id":"33ff86d1-7d38-498a-afc9-bb042a928250","block_type":"box","text":"or entities or their clients may be a consideration of which investors in a Fund should be aware.","page_number":129,"box":{"x":69,"y":400,"width":680,"height":11}},{"id":"890b36d6-c1cc-4f6c-93da-68389653b7bc","block_type":"box","text":"BlackRock may enter into transactions and invest in securities, instruments and currencies on behalf of a Fund","page_number":129,"box":{"x":102,"y":423,"width":791,"height":11}},{"id":"7a45054b-a137-4453-a780-c7d242e0deea","block_type":"box","text":"in which clients of BlackRock, or, to the extent permitted by the Commission and applicable law, BlackRock, serves","page_number":129,"box":{"x":70,"y":438,"width":820,"height":11}},{"id":"637793ed-5ade-4273-ae90-79bfc3e3f45b","block_type":"box","text":"as the counterparty, principal or issuer. In such cases, such party’s interests in the transaction will be adverse to the","page_number":129,"box":{"x":69,"y":453,"width":837,"height":11}},{"id":"2e44aca9-f4d2-458a-b9dd-05cf77572733","block_type":"box","text":"interests of the Fund, and such party may have no incentive to assure that the Fund obtains the best possible prices","page_number":129,"box":{"x":70,"y":468,"width":832,"height":11}},{"id":"4bb3180a-eae1-49f8-b9d6-22c67774463c","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":129,"box":{"x":69,"y":483,"width":813,"height":11}},{"id":"be1f0269-3e5f-45cd-9143-f793cfba177c","block_type":"box","text":"Fund may enhance the profitability of BlackRock.","page_number":129,"box":{"x":70,"y":498,"width":344,"height":11}},{"id":"4a43e324-92eb-4440-b00f-3ae3b31cb9fd","block_type":"box","text":"BlackRock may also create, write or issue derivatives for clients, the underlying securities, currencies or","page_number":129,"box":{"x":102,"y":521,"width":741,"height":11}},{"id":"092db645-5c5c-426d-81ce-531e41d83d4d","block_type":"box","text":"instruments of which may be those in which a Fund invests or which may be based on the performance of the Fund.","page_number":129,"box":{"x":70,"y":536,"width":824,"height":11}},{"id":"a00cd364-480e-4a2d-8b61-75af32dd0749","block_type":"box","text":"Additionally, an affiliate of BlackRock will create, write or issue options, which may be based on the performance of","page_number":129,"box":{"x":68,"y":551,"width":825,"height":11}},{"id":"03908a49-3e28-49e9-b9f9-6d5614af552c","block_type":"box","text":"certain Funds. BlackRock has entered into an arrangement with Markit Indices Limited, the index provider for","page_number":129,"box":{"x":69,"y":566,"width":777,"height":11}},{"id":"d75da424-9446-4742-a66a-e15d089e2964","block_type":"box","text":"underlying fixed-income indexes used by certain iShares ETFs, related to derivative fixed-income products that are","page_number":129,"box":{"x":69,"y":581,"width":810,"height":12}},{"id":"b754c6ae-23a8-4bf2-8620-8e01897eb007","block_type":"box","text":"based on such iShares ETFs. Trading activity in these derivative products could also potentially lead to greater","page_number":129,"box":{"x":69,"y":597,"width":784,"height":11}},{"id":"cd84c337-c83d-459e-b879-4604748f7b84","block_type":"box","text":"liquidity for such products, increased purchase activity with respect to these iShares ETFs and increased assets","page_number":129,"box":{"x":70,"y":612,"width":798,"height":11}},{"id":"d6ba52f1-4b8e-4058-bd84-9d032f2c29cb","block_type":"box","text":"under management for BlackRock.","page_number":129,"box":{"x":69,"y":627,"width":243,"height":11}},{"id":"c747cd15-b9d8-40b5-969d-c111a044a423","block_type":"box","text":"A Fund may, subject to applicable law, purchase investments that are the subject of an underwriting or other","page_number":129,"box":{"x":101,"y":649,"width":773,"height":12}},{"id":"3c59f354-f441-4b77-80c2-9d3b1a630dce","block_type":"box","text":"distribution by BlackRock and may also enter into transactions with other clients of BlackRock where such other","page_number":129,"box":{"x":69,"y":664,"width":797,"height":12}},{"id":"5efa2d65-5d92-41ef-b750-45f0e41f6a12","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":129,"box":{"x":69,"y":680,"width":817,"height":11}},{"id":"1f2b65d3-9e52-4051-a29b-9404e26fe5eb","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":129,"box":{"x":68,"y":695,"width":837,"height":11}},{"id":"f0def559-403d-46bb-b1f4-930e5edb5373","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":129,"box":{"x":70,"y":710,"width":781,"height":11}},{"id":"cd46cf11-c538-496a-859f-d34a43b25f3a","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":129,"box":{"x":101,"y":733,"width":779,"height":11}},{"id":"6bf155ab-1a3c-4feb-90d6-c6914b8bcabb","block_type":"box","text":"other commercial capacities for a Fund. It is anticipated that the commissions, mark-ups, mark-downs, financial","page_number":129,"box":{"x":69,"y":748,"width":795,"height":11}},{"id":"3c975fb5-b9ab-4411-8991-c3a607a21131","block_type":"box","text":"advisory fees, underwriting and placement fees, sales fees, financing and commitment fees, brokerage fees, other","page_number":129,"box":{"x":69,"y":763,"width":821,"height":11}},{"id":"8abaa2a1-1cb4-4002-8fc7-ba918edec9a2","block_type":"box","text":"fees, compensation or profits, rates, terms and conditions charged by BlackRock will be in its view commercially","page_number":129,"box":{"x":68,"y":778,"width":802,"height":11}},{"id":"62cf54a5-4f43-4649-a64f-5f6a4cc46fe5","block_type":"box","text":"reasonable, although BlackRock, including its sales personnel, will have an interest in obtaining fees and other","page_number":129,"box":{"x":69,"y":793,"width":792,"height":11}},{"id":"b8f6fe56-c492-472d-a25d-310aeda4b105","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":129,"box":{"x":69,"y":808,"width":832,"height":11}},{"id":"14e22e6e-ae01-4d5b-82ce-4875a7f51145","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":129,"box":{"x":70,"y":823,"width":833,"height":11}},{"id":"3da3de89-a8ae-477c-b185-8807f0575082","block_type":"box","text":"that acts as a broker, dealer, agent, lender or in other commercial capacities for a Fund or BlackRock.","page_number":129,"box":{"x":68,"y":838,"width":726,"height":12}},{"id":"724eb19a-b250-47ef-a7a5-ce990f6e163c","block_type":"box","text":"Subject to applicable law, BlackRock (and its personnel and other distributors) will be entitled to retain fees and","page_number":129,"box":{"x":102,"y":861,"width":796,"height":11}},{"id":"070bf217-8176-4804-8fd5-8b07196e8528","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":129,"box":{"x":69,"y":876,"width":837,"height":11}},{"id":"430b701f-834e-4114-b064-822fe9267173","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":129,"box":{"x":69,"y":891,"width":823,"height":12}},{"id":"be8353fd-e271-401b-b4ab-be79921b17c3","block_type":"box","text":"II-91","page_number":129,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c4767d30-c4f1-48ed-845d-608d7fdad1d0","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":129,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9909ff3d-0289-49bd-ae94-e98a15f0b8d0","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":130,"box":{"x":69,"y":45,"width":828,"height":11}},{"id":"979d5772-6608-4fdb-81d4-b347bbc60c7a","block_type":"box","text":"any such fees or other amounts.","page_number":130,"box":{"x":69,"y":60,"width":230,"height":11}},{"id":"d262fd31-d2e9-4b14-83f2-4e1074b0755c","block_type":"box","text":"When BlackRock acts as broker, dealer, agent, adviser or in other commercial capacities in relation to the Funds,","page_number":130,"box":{"x":101,"y":83,"width":805,"height":11}},{"id":"bfa53a1c-8a4e-4f6a-97ac-6908dbbae310","block_type":"box","text":"BlackRock may take commercial steps in its own interests, which may have an adverse effect on the Funds.","page_number":130,"box":{"x":70,"y":98,"width":768,"height":11}},{"id":"26631661-3095-4399-849f-c7543fc6b5ea","block_type":"box","text":"A Fund will be required to establish business relationships with its counterparties based on the Fund’s own","page_number":130,"box":{"x":101,"y":120,"width":766,"height":11}},{"id":"2ad24fa8-143b-4432-9466-b0636eff93f2","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":130,"box":{"x":69,"y":136,"width":793,"height":11}},{"id":"1b427711-561b-40c9-9a14-365bb873556f","block_type":"box","text":"establishment of its business relationships, nor is it expected that the Fund’s counterparties will rely on the credit of","page_number":130,"box":{"x":69,"y":150,"width":835,"height":12}},{"id":"1aabef4c-7e6e-42a0-b86c-94682cbdaa8d","block_type":"box","text":"BlackRock in evaluating the Fund’s creditworthiness.","page_number":130,"box":{"x":70,"y":166,"width":374,"height":11}},{"id":"7088ebb0-9d2f-497c-99fa-95195eed86e0","block_type":"box","text":"BlackRock Investment Management, LLC (“BIM”) or BlackRock Institutional Trust Company, N.A. (“BTC”), as","page_number":130,"box":{"x":102,"y":188,"width":768,"height":12}},{"id":"97f9142c-3465-47a3-af2c-7dbaa3ed5654","block_type":"box","text":"applicable, each an affiliate of BlackRock, pursuant to SEC exemptive relief, acts as securities lending agent to, and","page_number":130,"box":{"x":69,"y":203,"width":829,"height":12}},{"id":"e7d9eac1-91ab-4f31-ab54-b007efbcf806","block_type":"box","text":"receives a share of securities lending revenues from, the Funds. BlackRock will also receive compensation for","page_number":130,"box":{"x":69,"y":218,"width":785,"height":12}},{"id":"e1cb90f7-db4d-4fe7-95ac-b5cbb600ce01","block_type":"box","text":"managing the reinvestment of the cash collateral from securities lending. There are potential conflicts of interests in","page_number":130,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"0b1401d7-e5bd-440c-9163-78f6e2b00e15","block_type":"box","text":"managing a securities lending program, including but not limited to: (i) BlackRock as securities lending agent may","page_number":130,"box":{"x":69,"y":249,"width":809,"height":11}},{"id":"684039b9-d6d5-46bb-83c0-84a5a206ada4","block_type":"box","text":"have an incentive to, among other things, increase or decrease the amount of securities on loan or to lend particular","page_number":130,"box":{"x":69,"y":264,"width":833,"height":11}},{"id":"fcd3dbcb-b3f6-4165-b89b-7c3947ce2cfb","block_type":"box","text":"securities in order to generate additional risk-adjusted revenue for BlackRock and its affiliates; and (ii) BlackRock as","page_number":130,"box":{"x":69,"y":279,"width":829,"height":11}},{"id":"d3ba25ee-463d-4bd9-9aed-61b574f52ad7","block_type":"box","text":"securities lending agent may have an incentive to allocate loans to clients that would provide more revenue to","page_number":130,"box":{"x":69,"y":294,"width":783,"height":11}},{"id":"2c018b42-b32f-4de2-8f42-1c2a3ed880b1","block_type":"box","text":"BlackRock. As described further below, BlackRock seeks to mitigate this conflict by providing its securities lending","page_number":130,"box":{"x":70,"y":309,"width":814,"height":11}},{"id":"4f3be953-b151-466e-8f10-e7aa24fcbcba","block_type":"box","text":"clients with equal lending opportunities over time in order to approximate pro rata allocation.","page_number":130,"box":{"x":69,"y":325,"width":660,"height":11}},{"id":"d47f308d-e737-4042-ada6-70268c949731","block_type":"box","text":"As part of its securities lending program, BlackRock indemnifies the Funds and certain other clients and/or","page_number":130,"box":{"x":101,"y":347,"width":767,"height":11}},{"id":"e821df00-b4d6-4dd2-9bf2-8546bc86f320","block_type":"box","text":"funds against a shortfall in collateral in the event of borrower default. On a regular basis, BlackRock calculates the","page_number":130,"box":{"x":68,"y":362,"width":820,"height":11}},{"id":"afbecf1e-46b0-416c-be40-3477f96d98cd","block_type":"box","text":"potential dollar exposure of collateral shortfall resulting from a borrower default (“shortfall risk”) in the securities","page_number":130,"box":{"x":70,"y":377,"width":806,"height":12}},{"id":"30382f2c-6cb1-43d3-aa0e-13a32f351232","block_type":"box","text":"lending program. BlackRock establishes program-wide borrower limits (“credit limits”) to actively manage borrower","page_number":130,"box":{"x":70,"y":393,"width":816,"height":11}},{"id":"2ad661ae-4ebb-4e0f-bf7c-5708324dab84","block_type":"box","text":"specific credit exposure. BlackRock oversees the risk model that calculates projected collateral shortfall values using","page_number":130,"box":{"x":69,"y":407,"width":838,"height":12}},{"id":"980cfaa0-1fc1-4ffe-a251-56d4b00302d2","block_type":"box","text":"loan-level factors such as loan and collateral type and market value as well as specific borrower credit","page_number":130,"box":{"x":70,"y":423,"width":727,"height":11}},{"id":"5d262a8f-5883-440a-85a8-94c3102341ec","block_type":"box","text":"characteristics. When necessary, BlackRock may adjust securities lending program attributes by restricting eligible","page_number":130,"box":{"x":69,"y":438,"width":815,"height":11}},{"id":"f989dac2-ae3e-49d7-9c47-c7b5e6841800","block_type":"box","text":"collateral or reducing borrower credit limits. As a result, the management of program-wide exposure as well as","page_number":130,"box":{"x":69,"y":453,"width":786,"height":11}},{"id":"aa5965f0-7847-4a4f-a049-3b1f66605d62","block_type":"box","text":"BlackRock-specific indemnification exposure may affect the amount of securities lending activity BlackRock may","page_number":130,"box":{"x":70,"y":468,"width":796,"height":11}},{"id":"bc0545da-9798-437c-9663-f7af20a0bb50","block_type":"box","text":"conduct at any given point in time by reducing the volume of lending opportunities for certain loans (including by","page_number":130,"box":{"x":69,"y":483,"width":799,"height":11}},{"id":"b36f17f1-835b-44e1-b65b-cdf83aa5998d","block_type":"box","text":"asset type, collateral type and/or revenue profile).","page_number":130,"box":{"x":69,"y":498,"width":356,"height":11}},{"id":"a41ae58a-826d-4501-b157-1a57d73386aa","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":130,"box":{"x":102,"y":521,"width":801,"height":11}},{"id":"84dc1036-71b9-4f06-883d-b76905491f93","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":130,"box":{"x":68,"y":536,"width":817,"height":11}},{"id":"84c4e73a-d9b1-43c8-9b6f-09d41aa74e5b","block_type":"box","text":"and/or market rules, liquidity considerations, or credit considerations, which may impact Funds by reducing or","page_number":130,"box":{"x":69,"y":551,"width":784,"height":11}},{"id":"05cc3b38-218e-4cc2-83f1-4a2085d34c5f","block_type":"box","text":"eliminating the volume of lending opportunities for certain types of loans, loans in particular markets, loans of","page_number":130,"box":{"x":69,"y":566,"width":789,"height":11}},{"id":"49d85f65-63a5-4047-8d7c-fca41c2a3630","block_type":"box","text":"particular securities or types of securities, or for loans overall. In addition, some borrowers may prefer certain","page_number":130,"box":{"x":70,"y":581,"width":783,"height":11}},{"id":"3d398357-e815-461a-84fe-0ab5f2bca111","block_type":"box","text":"BlackRock lenders that provide additional protections against lender default that are favored by their prudential","page_number":130,"box":{"x":70,"y":596,"width":790,"height":12}},{"id":"8d4471d3-229c-4d02-afd0-db688f532aa2","block_type":"box","text":"regulation.","page_number":130,"box":{"x":69,"y":612,"width":73,"height":11}},{"id":"96688ac8-0aa0-4e26-a7fa-188a79c8537c","block_type":"box","text":"BlackRock uses a predetermined systematic process in order to approximate pro rata allocation over time. In","page_number":130,"box":{"x":102,"y":634,"width":777,"height":11}},{"id":"51d89ab6-ab02-40c4-a586-93af99ee0f57","block_type":"box","text":"order to allocate a loan to a portfolio: (i) BlackRock as a whole must have sufficient lending capacity pursuant to the","page_number":130,"box":{"x":69,"y":649,"width":830,"height":12}},{"id":"cb870304-5da4-4f47-bebb-2438635290ce","block_type":"box","text":"various program limits (","page_number":130,"box":{"x":68,"y":665,"width":168,"height":11}},{"id":"31331426-bbd7-4d6c-83a5-ef03ae0c1419","block_type":"box","text":"i.e.","page_number":130,"box":{"x":238,"y":665,"width":20,"height":8}},{"id":"da99e85a-5b6a-415f-a3ea-26f8335e0e40","block_type":"box","text":"indemnification exposure limit and borrower credit limits); (ii) the lending portfolio must","page_number":130,"box":{"x":265,"y":664,"width":621,"height":12}},{"id":"a0f9a102-b8d1-440e-92f9-103a73e7b780","block_type":"box","text":"hold the asset at the time a loan opportunity arrives; and (iii) the lending portfolio must also have enough inventory,","page_number":130,"box":{"x":69,"y":680,"width":827,"height":11}},{"id":"8e93c83d-a416-487b-a767-167da1b9bae6","block_type":"box","text":"either on its own or when aggregated with other portfolios into one single market delivery, to satisfy the loan request.","page_number":130,"box":{"x":69,"y":695,"width":836,"height":11}},{"id":"8e4064c6-d5a9-44c1-b304-92c4b9108845","block_type":"box","text":"In doing so, BlackRock seeks to provide equal lending opportunities for all portfolios, independent of whether","page_number":130,"box":{"x":70,"y":710,"width":780,"height":11}},{"id":"420bc954-3476-45fe-a771-b4cc9ae29834","block_type":"box","text":"BlackRock indemnifies the portfolio. Equal opportunities for lending portfolios does not guarantee equal outcomes.","page_number":130,"box":{"x":70,"y":725,"width":820,"height":11}},{"id":"ac7a1712-0847-4ba5-839a-fc470a38fa09","block_type":"box","text":"Specifically, short and long-term outcomes for individual clients may vary due to asset mix, asset/liability spreads on","page_number":130,"box":{"x":69,"y":740,"width":834,"height":11}},{"id":"bc367d82-ed1d-447f-947c-299d2041cd0b","block_type":"box","text":"different securities, and the overall limits imposed by the firm.","page_number":130,"box":{"x":69,"y":755,"width":444,"height":11}},{"id":"244ecfa3-f0af-4d2a-9c3f-a0ce4d132865","block_type":"box","text":"Purchases and sales of securities and other assets for a Fund may be aggregated with orders for other","page_number":130,"box":{"x":102,"y":778,"width":734,"height":11}},{"id":"e56305b8-1760-4869-95b3-6e3915a07d6b","block_type":"box","text":"BlackRock client accounts, including with accounts that pay different transaction costs solely due to the fact that they","page_number":130,"box":{"x":70,"y":793,"width":840,"height":11}},{"id":"1ed03d02-f3c1-49f3-8938-2fda8a1ab52d","block_type":"box","text":"have different research payment arrangements. BlackRock, however, is not required to aggregate orders if portfolio","page_number":130,"box":{"x":69,"y":808,"width":822,"height":11}},{"id":"de6d721d-76c8-4f44-bc96-989b70901ed0","block_type":"box","text":"management decisions for different accounts are made separately, or if they determine that aggregating is not","page_number":130,"box":{"x":69,"y":823,"width":788,"height":12}},{"id":"ad88c76f-a077-45c1-96fa-d59ae6d5d000","block_type":"box","text":"practicable or required, or in cases involving client direction.","page_number":130,"box":{"x":70,"y":839,"width":426,"height":11}},{"id":"0f0f5947-8733-4b9a-9ba4-2331693a2725","block_type":"box","text":"Prevailing trading activity frequently may make impossible the receipt of the same price or execution on the","page_number":130,"box":{"x":102,"y":861,"width":763,"height":11}},{"id":"de07cb49-d148-4542-baa4-72f13b8c9474","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":130,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"d5123123-63c2-434a-bbf3-fb4cbf2eca7e","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":130,"box":{"x":68,"y":891,"width":767,"height":12}},{"id":"8c9e96f5-5201-443e-84b3-5282102e158a","block_type":"box","text":"II-92","page_number":130,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b67db5a7-9264-4bee-b19d-ecdd5883228d","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":130,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2b5fe43b-db23-41cd-8200-a74e74e2bc36","block_type":"box","text":"occasions to the disadvantage of the Funds. In addition, under certain circumstances, the Funds will not be charged","page_number":131,"box":{"x":69,"y":45,"width":828,"height":11}},{"id":"2ddeb626-134a-4689-9482-3ed1d02fc60b","block_type":"box","text":"the same commission or commission equivalent rates in connection with an aggregated order.","page_number":131,"box":{"x":68,"y":60,"width":672,"height":11}},{"id":"891edc20-19f6-4fee-aa96-11e66ffdca9b","block_type":"box","text":"As discussed in the section below entitled “Portfolio Transactions and Brokerage—Transactions in Portfolio","page_number":131,"box":{"x":101,"y":82,"width":767,"height":12}},{"id":"34eadf02-4256-41ab-b78e-fce6549c08f0","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":131,"box":{"x":69,"y":98,"width":832,"height":11}},{"id":"96caef47-2dc1-4be9-b363-81fe48dd08c3","block_type":"box","text":"commission for effecting a transaction that exceeds the amount another broker or dealer would have charged for","page_number":131,"box":{"x":69,"y":113,"width":805,"height":11}},{"id":"115491f4-a9c4-441e-a149-8bab5947ca1a","block_type":"box","text":"effecting the same transaction in recognition of the value of brokerage and research services provided by that broker","page_number":131,"box":{"x":69,"y":128,"width":836,"height":11}},{"id":"c75de03a-1f8d-4350-b43a-821aabcf34b9","block_type":"box","text":"or dealer. Under MiFID II, EU investment managers, including BlackRock International Limited (“BIL”) which acts as a","page_number":131,"box":{"x":69,"y":143,"width":831,"height":11}},{"id":"627751e7-3c47-4a51-a879-bc7a6d40e406","block_type":"box","text":"sub-adviser to certain Funds, pay for research from brokers and dealers directly out of their own resources, rather","page_number":131,"box":{"x":69,"y":158,"width":812,"height":11}},{"id":"52e5209f-6f98-4185-ad28-6b77ca96cf5f","block_type":"box","text":"than through client commissions.","page_number":131,"box":{"x":68,"y":173,"width":237,"height":11}},{"id":"e58a5d36-d6cc-4a0e-bae7-6e289a15012b","block_type":"box","text":"Subject to applicable law, BlackRock may select brokers that furnish BlackRock, the Funds, other BlackRock","page_number":131,"box":{"x":102,"y":196,"width":770,"height":11}},{"id":"cd0c69d7-02cd-4260-8346-dcad5834283c","block_type":"box","text":"client accounts or personnel, directly or through correspondent relationships, with research or other appropriate","page_number":131,"box":{"x":69,"y":211,"width":797,"height":11}},{"id":"4b26c253-61c5-483c-bd6d-23ee17b441d0","block_type":"box","text":"services which provide, in BlackRock’s view, appropriate assistance to BlackRock in the investment decision making","page_number":131,"box":{"x":69,"y":226,"width":830,"height":11}},{"id":"ef54866e-92ff-4f15-9504-8be4429715f1","block_type":"box","text":"process (including with respect to futures, fixed-price offerings and OTC transactions). Such research or other","page_number":131,"box":{"x":70,"y":241,"width":780,"height":11}},{"id":"95b1bd1c-4390-487f-b05b-5cccd3fecf67","block_type":"box","text":"services may include, to the extent permitted by law, research reports on companies, industries and securities;","page_number":131,"box":{"x":69,"y":257,"width":795,"height":10}},{"id":"fb3a0f24-312d-475a-89ba-fd20085910bd","block_type":"box","text":"economic and financial data; financial publications; proxy analysis; trade industry seminars; computer data bases;","page_number":131,"box":{"x":69,"y":271,"width":815,"height":12}},{"id":"d326778b-5b58-41e7-aacf-78411e38f22e","block_type":"box","text":"research-oriented software and other services and products.","page_number":131,"box":{"x":69,"y":286,"width":430,"height":11}},{"id":"ca35b6a5-7e4d-4ef8-969f-89563841f541","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":131,"box":{"x":102,"y":309,"width":785,"height":11}},{"id":"33535f41-3c69-4d17-bf38-1901e46901b2","block_type":"box","text":"BlackRock client accounts, including in connection with BlackRock client accounts other than those that pay","page_number":131,"box":{"x":70,"y":325,"width":768,"height":11}},{"id":"beb958cc-a65d-4a47-88b8-68de2df8c09c","block_type":"box","text":"commissions to the broker relating to the research or other service arrangements. Such products and services may","page_number":131,"box":{"x":69,"y":340,"width":826,"height":11}},{"id":"ccc7e46c-2dfc-4a5f-b383-9df7f6f488d9","block_type":"box","text":"disproportionately benefit other BlackRock client accounts relative to the Funds based on the amount of brokerage","page_number":131,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"9f765028-57e0-4506-a42b-95bbb71856ed","block_type":"box","text":"commissions paid by the Funds and such other BlackRock client accounts. For example, research or other services","page_number":131,"box":{"x":69,"y":370,"width":821,"height":11}},{"id":"9de5e81b-e819-4f6d-bcd2-acd239d1a10c","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":131,"box":{"x":68,"y":385,"width":815,"height":11}},{"id":"07ae8b51-5632-47b8-b4cb-9d5d60d36382","block_type":"box","text":"other BlackRock client accounts may receive the benefit, including disproportionate benefits, of economies of scale","page_number":131,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"dfa3c229-aa92-47bc-8ab5-08fd13ada1d4","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":131,"box":{"x":69,"y":415,"width":804,"height":11}},{"id":"bcb152b0-6719-4971-a749-aea267d810c2","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":131,"box":{"x":70,"y":430,"width":819,"height":11}},{"id":"cd59db97-a98d-485f-aed4-ef210b8bf3aa","block_type":"box","text":"and services itself.","page_number":131,"box":{"x":69,"y":445,"width":134,"height":9}},{"id":"511ba23c-5763-474d-b3f9-249879364849","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may endeavor to execute trades through brokers who, pursuant","page_number":131,"box":{"x":102,"y":468,"width":793,"height":11}},{"id":"589be3bf-1285-48e9-a7be-b81529034a52","block_type":"box","text":"to such arrangements, provide research or other services in order to ensure the continued receipt of research or","page_number":131,"box":{"x":68,"y":483,"width":805,"height":11}},{"id":"cc2398e6-647b-4dfc-a53b-4ff3cd7e4a27","block_type":"box","text":"other services BlackRock believes are useful in its investment decision-making process. BlackRock may from time to","page_number":131,"box":{"x":69,"y":498,"width":833,"height":11}},{"id":"1ef55c14-a06d-4344-b8c0-925f09857487","block_type":"box","text":"time choose not to engage in the above described arrangements to varying degrees. BlackRock, unless prohibited by","page_number":131,"box":{"x":68,"y":514,"width":836,"height":11}},{"id":"876a7e6e-7f9e-4721-a5c8-9b60a0cb0591","block_type":"box","text":"applicable law, may also enter into commission sharing arrangements under which BlackRock may execute","page_number":131,"box":{"x":69,"y":529,"width":760,"height":11}},{"id":"8626dc23-a33a-4517-8a7b-2c5d57b36e74","block_type":"box","text":"transactions through a broker-dealer and request that the broker-dealer allocate a portion of the commissions or","page_number":131,"box":{"x":68,"y":543,"width":803,"height":12}},{"id":"c0ccdbbb-07d5-406b-b63a-02f4cbab22c8","block_type":"box","text":"commission credits to another firm that provides research to BlackRock. To the extent that BlackRock engages in","page_number":131,"box":{"x":69,"y":559,"width":807,"height":11}},{"id":"4db7b276-da0a-473b-9fe3-48fe990eda00","block_type":"box","text":"commission sharing arrangements, many of the same conflicts related to traditional soft dollars may exist.","page_number":131,"box":{"x":69,"y":574,"width":760,"height":11}},{"id":"1da7a228-ec99-46f4-8e80-daff28233253","block_type":"box","text":"BlackRock may utilize certain electronic crossing networks (“ECNs”) (including, without limitation, ECNs in which","page_number":131,"box":{"x":102,"y":597,"width":799,"height":11}},{"id":"27f44b8f-f9b7-467c-a631-adf59b3b10f5","block_type":"box","text":"BlackRock has an investment or other interest, to the extent permitted by applicable law) in executing client","page_number":131,"box":{"x":70,"y":612,"width":767,"height":11}},{"id":"6691c673-f401-4f12-a845-1f2f0f624e4d","block_type":"box","text":"securities transactions for certain types of securities. These ECNs may charge fees for their services, including","page_number":131,"box":{"x":69,"y":627,"width":794,"height":11}},{"id":"d1acdfa0-aafe-44dd-8c17-043685523dfc","block_type":"box","text":"access fees and transaction fees. The transaction fees, which are similar to commissions or markups/ markdowns,","page_number":131,"box":{"x":69,"y":642,"width":825,"height":11}},{"id":"768d87c4-5014-4015-b809-bdd7647b0f04","block_type":"box","text":"will generally be charged to clients and, like commissions and markups/markdowns, would generally be included in","page_number":131,"box":{"x":68,"y":657,"width":821,"height":11}},{"id":"03958618-b374-4124-898a-fb8be231940f","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":131,"box":{"x":68,"y":672,"width":833,"height":11}},{"id":"619f40da-fbfe-46a7-b7da-e1084c1c4e6c","block_type":"box","text":"executing transactions on behalf of clients, including the Funds. In certain circumstances, ECNs may offer volume","page_number":131,"box":{"x":69,"y":687,"width":812,"height":11}},{"id":"5850465e-f20e-403b-8f1b-0850dc0109fe","block_type":"box","text":"discounts that will reduce the access fees typically paid by BlackRock. BlackRock will only utilize ECNs consistent","page_number":131,"box":{"x":69,"y":702,"width":809,"height":11}},{"id":"7a8a325c-ee67-450f-a67c-f29618e8917f","block_type":"box","text":"with its obligation to seek to obtain best execution in client transactions.","page_number":131,"box":{"x":68,"y":718,"width":519,"height":11}},{"id":"982a6581-370b-4cdf-ad4d-929b041fe7db","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":131,"box":{"x":102,"y":740,"width":793,"height":11}},{"id":"8175592f-6a3b-4e5b-877a-da8264ef6933","block_type":"box","text":"stock exchange. Transactions for a Fund may be executed on MEMX if third party brokers select MEMX as the","page_number":131,"box":{"x":69,"y":755,"width":782,"height":11}},{"id":"12ee4cd8-7b8a-462a-beda-25a2108a1278","block_type":"box","text":"appropriate venue for execution of orders placed by BlackRock traders on behalf of client portfolios.","page_number":131,"box":{"x":69,"y":770,"width":710,"height":11}},{"id":"f192b2d8-7d20-4bbd-ace2-9439f09e93c8","block_type":"box","text":"BlackRock has adopted policies and procedures designed to prevent conflicts of interest from influencing proxy","page_number":131,"box":{"x":102,"y":793,"width":792,"height":11}},{"id":"2df30414-e19f-42fd-86a5-53aaf21c46d9","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":131,"box":{"x":68,"y":808,"width":784,"height":11}},{"id":"91ac5ad1-9f41-48c2-bf98-124d7cf07851","block_type":"box","text":"decisions are made in accordance with BlackRock’s fiduciary obligations to its clients. Nevertheless, notwithstanding","page_number":131,"box":{"x":69,"y":823,"width":837,"height":12}},{"id":"53c254fa-35ff-49df-8eaf-5356349a1584","block_type":"box","text":"such proxy voting policies and procedures, actual proxy voting decisions of BlackRock may have the effect of favoring","page_number":131,"box":{"x":69,"y":838,"width":835,"height":12}},{"id":"7fa88b70-5dd5-47ef-8275-b6e6b13783d6","block_type":"box","text":"the interests of other clients or businesses of other divisions or units of BlackRock, provided that BlackRock believes","page_number":131,"box":{"x":68,"y":853,"width":837,"height":11}},{"id":"1bf837ea-7c5b-44bc-8558-ea7b7bb3401f","block_type":"box","text":"such voting decisions to be in accordance with its fiduciary obligations. For a more detailed discussion of these","page_number":131,"box":{"x":69,"y":869,"width":795,"height":11}},{"id":"91f2e759-5d52-4526-b907-c6e739f93feb","block_type":"box","text":"policies and procedures, see “Proxy Voting Policies and Procedures.”","page_number":131,"box":{"x":70,"y":884,"width":490,"height":11}},{"id":"e4296a4d-724b-4d61-a4b7-d02e962d36e3","block_type":"box","text":"II-93","page_number":131,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"2f5d62d8-22da-42ab-81c3-4aa859cd700b","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":131,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"84029911-af12-4d85-9850-6df8ada9f61b","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":132,"box":{"x":102,"y":45,"width":757,"height":11}},{"id":"a59984db-4ea3-4183-9ea3-76fa7df64024","block_type":"box","text":"separately managed accounts) may, subject to compliance with applicable law, purchase and hold shares of a Fund.","page_number":132,"box":{"x":69,"y":60,"width":825,"height":11}},{"id":"37673031-7368-4de0-a2ba-7b3ac87eedce","block_type":"box","text":"Increasing a Fund’s assets may enhance investment flexibility and diversification and may contribute to economies of","page_number":132,"box":{"x":70,"y":75,"width":837,"height":11}},{"id":"b86663e5-8d49-40c3-b84c-535d4a514bbc","block_type":"box","text":"scale that tend to reduce the Fund’s expense ratio. BlackRock reserves the right, subject to compliance with","page_number":132,"box":{"x":69,"y":90,"width":774,"height":11}},{"id":"62d1d7d1-9f66-4b22-a7b6-a1120188e226","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":132,"box":{"x":69,"y":105,"width":796,"height":11}},{"id":"3a9c8889-651a-4e6b-8ae5-a5806521f699","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":132,"box":{"x":69,"y":120,"width":830,"height":12}},{"id":"2e7100cb-d0b6-452a-99c6-f0594a376ef1","block_type":"box","text":"an adverse effect on the Fund’s investment flexibility, portfolio diversification and expense ratio. BlackRock seeks to","page_number":132,"box":{"x":69,"y":135,"width":831,"height":11}},{"id":"d084a023-3d51-4364-b650-501e6c47518a","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":132,"box":{"x":69,"y":150,"width":834,"height":12}},{"id":"4c553aa3-3405-4540-a62f-fd18062543eb","block_type":"box","text":"not obligated to do so and may elect not to do so.","page_number":132,"box":{"x":69,"y":166,"width":355,"height":11}},{"id":"7b49bab4-dfd5-4645-a86c-914b49eb90f4","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":132,"box":{"x":102,"y":188,"width":742,"height":12}},{"id":"dd159bee-8e2d-43a5-a358-d389847a73c2","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":132,"box":{"x":70,"y":203,"width":838,"height":12}},{"id":"50a9816f-1575-4c4d-a101-ce55e77f5df3","block_type":"box","text":"structured notes) by entities for which BlackRock provides and is compensated for cash management services","page_number":132,"box":{"x":69,"y":218,"width":788,"height":12}},{"id":"842c0ab6-c363-43c0-927b-04d5282b1555","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":132,"box":{"x":69,"y":234,"width":816,"height":11}},{"id":"253533a8-0fda-4a81-8836-67ee0699146d","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":132,"box":{"x":69,"y":249,"width":806,"height":11}},{"id":"ac9fd02d-2b92-490c-94aa-d763d4350021","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":132,"box":{"x":68,"y":264,"width":822,"height":11}},{"id":"c9008cd0-35c0-4acc-aa22-45cb73a04a34","block_type":"box","text":"and sales of securities. As indicated below, BlackRock may engage in transactions with companies in which","page_number":132,"box":{"x":69,"y":279,"width":766,"height":11}},{"id":"67b44df2-7b14-48ba-aedf-5f84c63275be","block_type":"box","text":"BlackRock-advised funds or other clients of BlackRock have an investment.","page_number":132,"box":{"x":70,"y":294,"width":533,"height":9}},{"id":"10dfcff6-fcff-4614-b178-3d82152aff27","block_type":"box","text":"BlackRock and its personnel and other financial service providers may have interests in promoting sales of the","page_number":132,"box":{"x":102,"y":317,"width":789,"height":11}},{"id":"83a89400-a1d1-477e-8042-a420f5165259","block_type":"box","text":"Funds. With respect to BlackRock and its personnel, the remuneration and profitability relating to services to and","page_number":132,"box":{"x":70,"y":332,"width":805,"height":11}},{"id":"eaacb4f0-bca3-4c1b-8724-ffa2fb673e27","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":132,"box":{"x":69,"y":347,"width":813,"height":11}},{"id":"3fcb187d-5a15-4a37-9bc1-c7ab131216f9","block_type":"box","text":"sales of certain funds or other products that might be provided or offered. BlackRock and its sales personnel may","page_number":132,"box":{"x":69,"y":362,"width":814,"height":11}},{"id":"4fb3a11e-9f69-41bf-b3e0-9f7dc1d772b6","block_type":"box","text":"directly or indirectly receive a portion of the fees and commissions charged to the Funds or their shareholders.","page_number":132,"box":{"x":69,"y":377,"width":788,"height":12}},{"id":"af5aa8e1-c18c-45e0-b19c-33c657be1110","block_type":"box","text":"BlackRock and its advisory or other personnel may also benefit from increased amounts of assets under","page_number":132,"box":{"x":70,"y":392,"width":745,"height":12}},{"id":"81b8353d-3804-4ff2-9a17-4e1453048884","block_type":"box","text":"management. Fees and commissions may also be higher than for other products or services, and the remuneration","page_number":132,"box":{"x":69,"y":407,"width":822,"height":12}},{"id":"f1c5bad6-2c93-44cb-9f27-7857fbd656e7","block_type":"box","text":"and profitability to BlackRock and such personnel resulting from transactions on behalf of or management of the","page_number":132,"box":{"x":69,"y":423,"width":801,"height":11}},{"id":"7fc92348-71b8-4fb9-aacf-66908c61ae40","block_type":"box","text":"Funds may be greater than the remuneration and profitability resulting from other funds or products.","page_number":132,"box":{"x":70,"y":438,"width":711,"height":11}},{"id":"2beffd52-2d53-4599-971f-86dd53a79894","block_type":"box","text":"BlackRock may provide valuation assistance to certain clients with respect to certain securities or other","page_number":132,"box":{"x":102,"y":461,"width":741,"height":11}},{"id":"38d00da3-894e-4b46-8046-fc8578003c54","block_type":"box","text":"investments and the valuation recommendations made for such clients’ accounts may differ from the valuations for","page_number":132,"box":{"x":70,"y":475,"width":823,"height":12}},{"id":"4fc73084-a4df-4b44-8fe0-a4c843e4f1da","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":132,"box":{"x":68,"y":491,"width":829,"height":11}},{"id":"763391a8-18ea-4ed9-aced-e642de21f724","block_type":"box","text":"broker-dealer quotes or other data sources unavailable to the Fund’s pricing vendors. While BlackRock will generally","page_number":132,"box":{"x":69,"y":506,"width":825,"height":11}},{"id":"b877bea5-6449-45f1-a8c2-acebe623ac18","block_type":"box","text":"communicate its valuation information or determinations to a Fund’s pricing vendors and/or fund accountants, there","page_number":132,"box":{"x":69,"y":521,"width":830,"height":11}},{"id":"f7a790ab-1a5f-42d5-a622-c04202bfd40d","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":132,"box":{"x":69,"y":536,"width":824,"height":11}},{"id":"1ac6339f-75a3-47c8-b59b-d385bdc27796","block_type":"box","text":"other investment than the valuation for such security or investment determined or recommended by BlackRock.","page_number":132,"box":{"x":69,"y":551,"width":792,"height":11}},{"id":"905cdb9b-5843-4e56-9569-d86762e481ea","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":132,"box":{"x":101,"y":574,"width":784,"height":11}},{"id":"55d3527c-6a95-4413-942f-402c9a85a189","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":132,"box":{"x":69,"y":589,"width":837,"height":11}},{"id":"9aead9e8-c7f4-43be-b275-26f7924af9dc","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":132,"box":{"x":68,"y":604,"width":803,"height":11}},{"id":"c4f5b586-b165-4026-b84d-82e6e9a877aa","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":132,"box":{"x":69,"y":619,"width":831,"height":11}},{"id":"835c6f79-9300-4c40-bcd2-42794090cb8a","block_type":"box","text":"assistance from other BlackRock pricing committees and in accordance with BlackRock’s policies and procedures","page_number":132,"box":{"x":69,"y":634,"width":811,"height":12}},{"id":"686f8ad2-4848-43a3-bd19-8dc775b133bf","block_type":"box","text":"(the “Valuation Procedures”). When determining a “fair value price,” the 2a-5 Committee seeks to determine the","page_number":132,"box":{"x":69,"y":649,"width":802,"height":12}},{"id":"033988a0-0dbf-4260-a24d-dbbd8e5134e1","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":132,"box":{"x":70,"y":664,"width":829,"height":12}},{"id":"cc423214-385f-4109-b29d-bfb4f374f07a","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":132,"box":{"x":68,"y":680,"width":832,"height":11}},{"id":"9094d3d9-a37e-48e8-b71f-a2c460ba2d5b","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":132,"box":{"x":69,"y":695,"width":837,"height":11}},{"id":"d4a2aae5-51cb-42a8-bd9f-1247b3d79fc5","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":132,"box":{"x":68,"y":710,"width":829,"height":11}},{"id":"ee6c35da-bfdb-44c1-b81e-5d742b9c98c5","block_type":"box","text":"based on analytical values determined by BlackRock using proprietary or third party valuation models, fair value","page_number":132,"box":{"x":69,"y":725,"width":796,"height":11}},{"id":"a0f9df6c-1477-44ee-8665-d3618e2a7440","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":132,"box":{"x":69,"y":740,"width":839,"height":11}},{"id":"a2e2cc7b-61f3-4572-af9f-96228cd3e522","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":132,"box":{"x":70,"y":755,"width":800,"height":11}},{"id":"e703bbcd-f053-45a2-ad05-8b23e7b17e22","block_type":"box","text":"period in which the particular fair values were used in determining a Fund’s NAV. As a result, a Fund’s sale or","page_number":132,"box":{"x":70,"y":770,"width":779,"height":12}},{"id":"26cf5498-0c97-4d20-b092-5cf36963cea5","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":132,"box":{"x":69,"y":785,"width":834,"height":12}},{"id":"73e95b37-89bc-410d-a440-cbfc95a91e33","block_type":"box","text":"may have the effect of diluting or increasing the economic interest of existing shareholders and may affect the","page_number":132,"box":{"x":69,"y":801,"width":788,"height":11}},{"id":"bb45452e-2a0d-4c91-b772-336ecd17bba4","block_type":"box","text":"amount of revenue received by BlackRock with respect to services for which it receives an asset-based fee.","page_number":132,"box":{"x":69,"y":816,"width":765,"height":11}},{"id":"82fc9579-3af8-46ea-96e5-7063d0af01d8","block_type":"box","text":"To the extent permitted by applicable law, a Fund may invest all or some of its short term cash investments in","page_number":132,"box":{"x":101,"y":838,"width":784,"height":11}},{"id":"fcfe6298-6c5e-4c2e-b3bf-c55f11e4640b","block_type":"box","text":"any money market fund or similarly-managed private fund advised or managed by BlackRock. In connection with any","page_number":132,"box":{"x":69,"y":853,"width":823,"height":12}},{"id":"ab410e38-6a05-4afb-83e7-9623138c07c3","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":132,"box":{"x":69,"y":869,"width":833,"height":11}},{"id":"956bf66c-df3e-4b2a-b037-e001f7ad5499","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":132,"box":{"x":69,"y":884,"width":822,"height":11}},{"id":"a4306591-8c34-4181-9fb8-83cf32f55be2","block_type":"box","text":"some additional expenses.","page_number":132,"box":{"x":69,"y":899,"width":190,"height":11}},{"id":"150390c8-1d59-4546-86a3-09335493130c","block_type":"box","text":"II-94","page_number":132,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"82270bb4-c359-411a-b713-7a8ad3dba449","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":132,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"cee9f36b-63a1-43ad-b3cc-5f33dd35395f","block_type":"box","text":"BlackRock and its directors, officers and employees, may buy and sell securities or other investments for their","page_number":133,"box":{"x":102,"y":45,"width":787,"height":11}},{"id":"7d640b71-09c4-45c2-98da-61a7067213fd","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":133,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"9c8613f9-aa0d-4d83-9ab2-bd7ef9c8acd9","block_type":"box","text":"differing trading and investment strategies or constraints, positions may be taken by directors, officers and","page_number":133,"box":{"x":69,"y":75,"width":764,"height":11}},{"id":"49b37bea-013b-422e-a842-3ae6ecf865af","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":133,"box":{"x":69,"y":90,"width":809,"height":11}},{"id":"658bd5e6-f1d7-4678-b9c5-6e4de1282d9d","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":133,"box":{"x":70,"y":105,"width":802,"height":11}},{"id":"d0cd3970-a34e-4751-bce2-bcd1d8396e8e","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":133,"box":{"x":70,"y":120,"width":828,"height":11}},{"id":"a69d65cd-b83b-4c12-a9e3-e70494b4bbf9","block_type":"box","text":"restricts securities trading in the personal accounts of investment professionals and others who normally come into","page_number":133,"box":{"x":69,"y":135,"width":825,"height":12}},{"id":"bc50c1e5-33b6-4bc5-bfe2-2a7890d1a5aa","block_type":"box","text":"possession of information regarding the Fund’s portfolio transactions. Each Code of Ethics is also available on the","page_number":133,"box":{"x":70,"y":150,"width":816,"height":12}},{"id":"fb8684cd-db4e-4e61-8aa7-85133ef35540","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":133,"box":{"x":70,"y":166,"width":836,"height":11}},{"id":"358fdfa2-2208-47db-8d60-302498561cde","block_type":"box","text":"a duplicating fee, by e-mail at publicinfo@sec.gov.","page_number":133,"box":{"x":69,"y":181,"width":352,"height":11}},{"id":"b51756d5-cd87-4b5d-86ae-8b5a2b659986","block_type":"box","text":"BlackRock will not purchase securities or other property from, or sell securities or other property to, a Fund,","page_number":133,"box":{"x":102,"y":203,"width":768,"height":12}},{"id":"4ad950b8-d750-464f-a839-1f5450e90161","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":133,"box":{"x":69,"y":219,"width":836,"height":11}},{"id":"e514bc80-d626-40e2-bc3a-6d79e646f0b6","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":133,"box":{"x":68,"y":234,"width":839,"height":10}},{"id":"995dda7c-67a2-41a1-868f-c5057b008a75","block_type":"box","text":"or investment advisers or pursuant to exemptive orders granted to the Funds and/or BlackRock by the Commission.","page_number":133,"box":{"x":69,"y":249,"width":824,"height":11}},{"id":"ff89a4e2-06b9-4940-8179-2723aab9e43a","block_type":"box","text":"These transactions would be effected in circumstances in which BlackRock determined that it would be appropriate","page_number":133,"box":{"x":68,"y":264,"width":824,"height":11}},{"id":"7259b871-e91c-4245-aabc-96cac3f3f194","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":133,"box":{"x":68,"y":279,"width":826,"height":11}},{"id":"78e491dd-94df-41e0-a143-a20589a603c8","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":133,"box":{"x":68,"y":294,"width":810,"height":11}},{"id":"524ac987-5653-46fa-9713-d4d5e55214fb","block_type":"box","text":"restricted because of regulatory requirements applicable to BlackRock and/or BlackRock’s internal policies designed","page_number":133,"box":{"x":69,"y":309,"width":834,"height":11}},{"id":"f113ad1a-afb4-485d-b71c-202aa87df41c","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":133,"box":{"x":68,"y":324,"width":782,"height":11}},{"id":"f17b9762-61d1-41d3-993e-4f72a7fe03ab","block_type":"box","text":"BlackRock would not be subject to some of those considerations. There may be periods when BlackRock may not","page_number":133,"box":{"x":70,"y":339,"width":807,"height":12}},{"id":"873d6a66-0864-4c3d-8140-530349e753be","block_type":"box","text":"initiate or recommend certain types of transactions, or may otherwise restrict or limit its advice regarding certain","page_number":133,"box":{"x":70,"y":355,"width":804,"height":11}},{"id":"aeb25975-536d-485c-80ff-356b984ebea4","block_type":"box","text":"securities or instruments issued by or related to companies for which BlackRock is performing advisory or other","page_number":133,"box":{"x":69,"y":370,"width":799,"height":11}},{"id":"fc435b3e-6aab-4fbe-9217-3f5e2707a60c","block_type":"box","text":"services or has proprietary positions. For example, when BlackRock is engaged to provide advisory or risk","page_number":133,"box":{"x":69,"y":385,"width":755,"height":11}},{"id":"11c3d31d-67a9-4fa0-b27e-52f47124f4c0","block_type":"box","text":"management services for a company, BlackRock may be prohibited from or limited in purchasing or selling securities","page_number":133,"box":{"x":69,"y":400,"width":831,"height":11}},{"id":"3f05fe26-3807-4cd2-a1d4-c969535fc5ca","block_type":"box","text":"of that company on behalf of a Fund, particularly where such services result in BlackRock obtaining material non","page_number":133,"box":{"x":69,"y":415,"width":806,"height":11}},{"id":"0d756c48-6bf3-489b-83c6-485809cb71ed","block_type":"box","text":"public information about the company (","page_number":133,"box":{"x":70,"y":430,"width":276,"height":11}},{"id":"1ee3dc45-9b12-4c3c-9dab-cac2bc6f865d","block_type":"box","text":"e.g.","page_number":133,"box":{"x":348,"y":432,"width":25,"height":9}},{"id":"d29217a2-1a21-41b9-98d3-11694caa62f7","block_type":"box","text":", in connection with participation in a creditors’ committee). Moreover,","page_number":133,"box":{"x":376,"y":430,"width":499,"height":11}},{"id":"2b6ac39a-44ca-434d-ad95-5ae9673878d0","block_type":"box","text":"applicable provisions of the Investment Company Act or other regulatory considerations may restrict a Fund or","page_number":133,"box":{"x":69,"y":445,"width":784,"height":12}},{"id":"07c48a2d-d88c-48e8-a7b1-60eabda64679","block_type":"box","text":"BlackRock from effecting certain portfolio transactions or taking other actions in respect of an investment on behalf","page_number":133,"box":{"x":70,"y":460,"width":827,"height":12}},{"id":"5fc8b50d-133d-4dd3-a348-d430d5aba180","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":133,"box":{"x":69,"y":475,"width":830,"height":12}},{"id":"dcbe9f40-33d3-4307-8fe5-91f903692fa8","block_type":"box","text":"the investment. Similar situations could arise if personnel of BlackRock serve as directors of companies the","page_number":133,"box":{"x":68,"y":491,"width":773,"height":11}},{"id":"72319e56-4b5c-4fcb-aa32-94b98cc878e7","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":133,"box":{"x":69,"y":506,"width":832,"height":11}},{"id":"48867cdb-21ae-4465-93ff-eee0dc1984ac","block_type":"box","text":"with BlackRock’s policies and procedures (including the necessary implementation of appropriate information","page_number":133,"box":{"x":68,"y":521,"width":781,"height":11}},{"id":"1b486b04-9dd5-4df8-a5c0-9a3b70d54b5c","block_type":"box","text":"barriers), the Funds may purchase securities or instruments that are issued by such companies, are the subject of","page_number":133,"box":{"x":69,"y":536,"width":819,"height":11}},{"id":"17cd2a1c-036a-48c8-a456-59df2859634c","block_type":"box","text":"an advisory or risk management assignment by BlackRock, or where personnel of BlackRock are directors or officers","page_number":133,"box":{"x":69,"y":551,"width":832,"height":11}},{"id":"7d8d16d8-ebc0-4f37-878b-c60b82f6e791","block_type":"box","text":"of the issuer.","page_number":133,"box":{"x":69,"y":566,"width":92,"height":9}},{"id":"9b64371a-d78b-4473-834b-a945811448ac","block_type":"box","text":"BlackRock has adopted and implemented policies and procedures that are designed to address potential","page_number":133,"box":{"x":102,"y":589,"width":748,"height":11}},{"id":"aba9ff20-48f1-4644-97e9-0005713f7633","block_type":"box","text":"conflicts that arise in connection with the advisory services BlackRock provides to Funds and other clients. Certain","page_number":133,"box":{"x":69,"y":604,"width":819,"height":11}},{"id":"417bf1ab-ccb1-45c5-8a99-f2c6369f0245","block_type":"box","text":"BlackRock advisory personnel may take views, and make decisions or recommendations, that are different than or","page_number":133,"box":{"x":70,"y":619,"width":817,"height":11}},{"id":"fb4e9ae7-2344-4d87-87a6-1e14df7e8ee0","block_type":"box","text":"opposite those of other BlackRock advisory personnel. Certain portfolio management teams within BlackRock may","page_number":133,"box":{"x":69,"y":634,"width":818,"height":12}},{"id":"39a774a2-3a42-4ea7-bb36-b7c8cf4917cf","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":133,"box":{"x":69,"y":649,"width":827,"height":12}},{"id":"bd8c0719-2a1f-42e8-a7f2-b0ce23400911","block_type":"box","text":"or adverse to the decisions made or the actions taken (or not taken) by the Funds’ portfolio management teams. The","page_number":133,"box":{"x":69,"y":664,"width":835,"height":12}},{"id":"d7e54f63-e3a7-4886-ac7e-8b3e24fed628","block_type":"box","text":"various portfolio management teams may not share information with each other, including as a result of certain","page_number":133,"box":{"x":68,"y":680,"width":797,"height":11}},{"id":"5c32393f-c8ed-4cfa-9648-aab92a298d02","block_type":"box","text":"information barriers and other policies, and will not have any obligation or other duty to do so.","page_number":133,"box":{"x":70,"y":695,"width":667,"height":11}},{"id":"5a893cb3-9c94-44c9-9288-79ddc33284e7","block_type":"box","text":"BlackRock has established certain information barriers and other policies to address the sharing of information","page_number":133,"box":{"x":102,"y":717,"width":794,"height":12}},{"id":"c132f899-95dc-46a2-8c8b-a3bfc1de5e9d","block_type":"box","text":"between different businesses within BlackRock, including with respect to personnel responsible with managing","page_number":133,"box":{"x":69,"y":732,"width":791,"height":12}},{"id":"63c3ba56-f30f-44b7-8297-21be24caa507","block_type":"box","text":"portfolios and voting proxies with respect to certain index equity portfolios versus those responsible for managing","page_number":133,"box":{"x":70,"y":748,"width":812,"height":11}},{"id":"20ab1a28-a6c6-4283-b628-c6a22eb56dc8","block_type":"box","text":"portfolios and voting proxies with respect to all other portfolios. As a result of information barriers, certain units of","page_number":133,"box":{"x":70,"y":763,"width":818,"height":11}},{"id":"4f333a90-375f-43a6-8c1a-2661813bdf6d","block_type":"box","text":"BlackRock generally will not have access, or will have limited access, to certain information and personnel, including","page_number":133,"box":{"x":70,"y":778,"width":830,"height":11}},{"id":"7f2645c7-e6a7-4891-b387-58fa681b8a42","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":133,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"4b79a7c6-fbdc-4762-839d-7d55b748e6f6","block_type":"box","text":"possessed by such other units. Therefore, BlackRock may not be able to review potential investments for the Funds","page_number":133,"box":{"x":70,"y":808,"width":824,"height":11}},{"id":"047b570e-fd33-4b6f-a6b6-724e431e91f5","block_type":"box","text":"with the benefit of information held by certain areas of BlackRock.","page_number":133,"box":{"x":68,"y":823,"width":472,"height":11}},{"id":"c155a888-664b-4919-a6eb-a85016b30b49","block_type":"box","text":"BlackRock may determine to move certain personnel, businesses, or business units from one side of an","page_number":133,"box":{"x":102,"y":846,"width":744,"height":11}},{"id":"d9edeed8-2ff5-42f6-9e2f-3b7220f90f49","block_type":"box","text":"information barrier to the other side of the information barrier. In connection therewith, BlackRock personnel,","page_number":133,"box":{"x":70,"y":861,"width":775,"height":11}},{"id":"ceaec559-8094-4da0-9777-6bc9f9fc4ab5","block_type":"box","text":"businesses, and business units that were moved will no longer have access to the information and personnel from","page_number":133,"box":{"x":69,"y":876,"width":818,"height":11}},{"id":"d3c8251b-6f2a-462f-b8a5-b502396c4eac","block_type":"box","text":"the side of the information barrier from which they were moved. Information obtained in connection with such","page_number":133,"box":{"x":68,"y":891,"width":779,"height":11}},{"id":"93f46506-81ff-4818-86be-d903e55420b7","block_type":"box","text":"changes to information barriers may limit or restrict the ability of BlackRock to engage in or otherwise effect","page_number":133,"box":{"x":69,"y":906,"width":771,"height":12}},{"id":"10c90b53-8d38-48af-bb29-bfcc9f7d5873","block_type":"box","text":"II-95","page_number":133,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"5314354d-eadf-4508-84b2-1f9becff4136","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":133,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"635d85d2-b7ac-408f-a629-d8e66c0046e2","block_type":"box","text":"transactions on behalf of the Funds (including purchasing or selling securities that BlackRock may otherwise have","page_number":134,"box":{"x":68,"y":45,"width":812,"height":11}},{"id":"d1ae1e6d-99c7-4caf-b839-d5387f2cffdc","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":134,"box":{"x":70,"y":60,"width":803,"height":11}},{"id":"f7319a00-3cce-4f6b-be22-e1c8a1e26eae","block_type":"box","text":"have their intended impact due to, for example, changes in applicable law or inadvertent crossings of the barriers,","page_number":134,"box":{"x":69,"y":75,"width":813,"height":11}},{"id":"ddc069d5-3672-4b97-935f-04f7a80bee22","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":134,"box":{"x":69,"y":90,"width":829,"height":11}},{"id":"701f4f2b-eb9b-4c00-99ff-afad43485267","block_type":"box","text":"a barrier.","page_number":134,"box":{"x":69,"y":105,"width":62,"height":9}},{"id":"318d2f09-747f-4a85-970b-5798b460bcae","block_type":"box","text":"Although the information barriers are intended to allow for independent portfolio management decision-making","page_number":134,"box":{"x":101,"y":128,"width":788,"height":11}},{"id":"d3c5e873-f641-4027-99c3-f87e948ea11d","block_type":"box","text":"and proxy voting among certain BlackRock businesses, the investment activities of BlackRock for BlackRock clients,","page_number":134,"box":{"x":69,"y":143,"width":827,"height":11}},{"id":"9bb8fdc8-6508-4217-aeb6-9ccd930620bc","block_type":"box","text":"as well as BlackRock’s proprietary accounts, may nonetheless limit the investment strategies and rights of other","page_number":134,"box":{"x":69,"y":158,"width":805,"height":11}},{"id":"d5a8f820-e391-4e12-ae32-6f95a5c4d01b","block_type":"box","text":"clients (including the Fund). As BlackRock’s assets under management increases, BlackRock clients may face greater","page_number":134,"box":{"x":69,"y":173,"width":840,"height":11}},{"id":"7c6c6258-c4c8-46b8-a6b4-29ba0fadd82a","block_type":"box","text":"negative impacts due to ownership restrictions and limitations imposed by laws, regulations, rules, regulators, or","page_number":134,"box":{"x":69,"y":188,"width":806,"height":12}},{"id":"78b2d4b2-8625-4eaf-8223-20e3ba217616","block_type":"box","text":"issuers. For example, in certain circumstances where a BlackRock client invests in securities issued by companies","page_number":134,"box":{"x":70,"y":204,"width":818,"height":11}},{"id":"6ea7869d-05f3-4708-b5df-1d4a7ad8fd8d","block_type":"box","text":"that operate in certain industries (","page_number":134,"box":{"x":68,"y":219,"width":244,"height":11}},{"id":"dffa2368-d8ac-45d0-998e-c714296054a6","block_type":"box","text":"e.g.","page_number":134,"box":{"x":314,"y":220,"width":25,"height":10}},{"id":"6a106226-7ff1-4da7-aed8-7458f6f26ba2","block_type":"box","text":", banking, insurance, and utilities) or in certain emerging or international","page_number":134,"box":{"x":342,"y":219,"width":515,"height":11}},{"id":"6e2e0af3-eb05-439a-b3b5-8e1cb27199dc","block_type":"box","text":"markets, or are subject to regulatory or corporate ownership restrictions (","page_number":134,"box":{"x":69,"y":234,"width":523,"height":11}},{"id":"33e78a21-9d5e-435d-a017-7344a470d11b","block_type":"box","text":"e.g.","page_number":134,"box":{"x":594,"y":235,"width":25,"height":10}},{"id":"4bfba041-8e39-4f64-9129-c64ee0ba7029","block_type":"box","text":", with mechanisms such as poison pills","page_number":134,"box":{"x":621,"y":234,"width":280,"height":11}},{"id":"98a9c00b-c4f6-4e42-8950-a7a5f3a7797b","block_type":"box","text":"in place to prevent takeovers), or where a BlackRock client invests in certain futures and derivatives, there may be","page_number":134,"box":{"x":70,"y":249,"width":816,"height":11}},{"id":"ccb8810c-12ff-4d82-9c9a-859ebc512bb3","block_type":"box","text":"limits on the aggregate amount invested by BlackRock for its clients and BlackRock’s proprietary accounts that may","page_number":134,"box":{"x":70,"y":264,"width":825,"height":11}},{"id":"1b82db0a-ff09-4447-bcb4-6409bcb4f360","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":134,"box":{"x":69,"y":279,"width":837,"height":11}},{"id":"c9fc8f63-2c88-4491-976b-ec8c2f76b9d0","block_type":"box","text":"or non-disapproval or, if exceeded, may cause BlackRock or its clients to be subject to enforcement actions,","page_number":134,"box":{"x":69,"y":294,"width":769,"height":11}},{"id":"5cf36d6b-d2b5-4cb8-916f-9bd51cbb3eaa","block_type":"box","text":"disgorgement of share ownership or profits, regulatory restrictions, complex compliance reporting, increased","page_number":134,"box":{"x":69,"y":309,"width":775,"height":11}},{"id":"0aae607b-34d7-4250-93d9-c40154c85ef7","block_type":"box","text":"compliance costs or suffer disadvantages or business restrictions. In light of certain restrictions, BlackRock may also","page_number":134,"box":{"x":69,"y":324,"width":839,"height":12}},{"id":"2642422f-9885-4a39-bb94-aa33bae16af4","block_type":"box","text":"seek to make indirect investments (","page_number":134,"box":{"x":69,"y":340,"width":255,"height":10}},{"id":"e6d10d62-d829-418e-a561-245b3e6bcb50","block_type":"box","text":"e.g.","page_number":134,"box":{"x":326,"y":341,"width":24,"height":10}},{"id":"da3eb5be-6003-48e7-af7a-ddb72e497410","block_type":"box","text":", using derivatives) on behalf of its clients to receive exposure to certain","page_number":134,"box":{"x":353,"y":339,"width":514,"height":12}},{"id":"0faf9a56-34fb-4fb7-bcb1-7662d5e6ecac","block_type":"box","text":"securities in excess of the applicable ownership restrictions and limitations when legally permitted that will expose","page_number":134,"box":{"x":69,"y":355,"width":817,"height":11}},{"id":"5debc341-718f-4132-bd44-f6655886fd47","block_type":"box","text":"such clients to additional costs and additional risks, including any risks associated with investing in derivatives.","page_number":134,"box":{"x":69,"y":370,"width":795,"height":11}},{"id":"81a59842-b2e3-4561-a4c0-35d805135c24","block_type":"box","text":"There may be limited availability of derivatives that provide indirect exposure to an impacted security. BlackRock","page_number":134,"box":{"x":68,"y":385,"width":799,"height":11}},{"id":"7ac75ec6-6ec3-4d42-be90-dbfc1b0180d3","block_type":"box","text":"clients can be subject to more than one ownership limitation depending on each client’s holdings, and each","page_number":134,"box":{"x":69,"y":400,"width":767,"height":11}},{"id":"5a9a98df-1d31-4146-bab7-b5c280c49952","block_type":"box","text":"ownership limitation can impact multiple securities held by the client. Certain clients or shareholders may have their","page_number":134,"box":{"x":69,"y":415,"width":829,"height":11}},{"id":"78998177-68d1-406e-ac6d-529be1252dad","block_type":"box","text":"own overlapping obligations to monitor their compliance with ownership limitations across their investments.","page_number":134,"box":{"x":69,"y":430,"width":772,"height":11}},{"id":"0f433b87-4430-46d8-a4ef-4484317cc4c2","block_type":"box","text":"If certain aggregate ownership thresholds are reached either through the actions of BlackRock or a BlackRock","page_number":134,"box":{"x":102,"y":453,"width":783,"height":11}},{"id":"3f9e2b22-e805-4d76-bcf6-788cc7aba8d9","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":134,"box":{"x":69,"y":468,"width":808,"height":11}},{"id":"beffecf5-b826-4083-9c65-6436f813b786","block_type":"box","text":"dispose of investments, or exercise rights (including voting) or undertake business transactions, may be restricted by","page_number":134,"box":{"x":69,"y":483,"width":837,"height":11}},{"id":"5eddc706-2174-4bfa-9b2d-ad60a565f924","block_type":"box","text":"law, regulation, rule, or organizational documents or otherwise impaired. For example, to meet the requirements of","page_number":134,"box":{"x":70,"y":498,"width":818,"height":11}},{"id":"b3ab643c-c29d-4000-b9a0-ec72e498ef03","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":134,"box":{"x":69,"y":514,"width":821,"height":10}},{"id":"6b9dcb41-7e19-4442-b6b3-ffd7f3ee3cff","block_type":"box","text":"otherwise purchase or hold. The limitation or restriction may be based on the holdings of other BlackRock clients","page_number":134,"box":{"x":69,"y":528,"width":806,"height":12}},{"id":"a69210e7-f530-4143-8ac0-e99df4a7c4f3","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":134,"box":{"x":70,"y":543,"width":839,"height":12}},{"id":"b620ec89-5f90-4b17-91b9-ba94d9051fa7","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":134,"box":{"x":69,"y":559,"width":826,"height":11}},{"id":"9569d673-0a4d-4278-b3f8-c154c36092e7","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":134,"box":{"x":69,"y":574,"width":807,"height":11}},{"id":"71357a15-cdfe-4b0e-8e65-9c1f9ce67adf","block_type":"box","text":"existing investments, utilize indirect investments, utilize information barriers, or otherwise restrict, forgo, or limit the","page_number":134,"box":{"x":69,"y":589,"width":830,"height":11}},{"id":"e2575b33-bbf7-402a-9b53-f44fe432b7dd","block_type":"box","text":"exercise of rights (including transferring, outsourcing, or limiting voting rights or forgoing the right to receive","page_number":134,"box":{"x":69,"y":604,"width":765,"height":11}},{"id":"ce8a2b3e-c9af-4056-bb7a-8fa0fad1b663","block_type":"box","text":"dividends) when BlackRock, in its sole discretion, deems it appropriate in light of potential regulatory or other","page_number":134,"box":{"x":69,"y":619,"width":781,"height":11}},{"id":"80a4d0ca-0230-4a84-b868-6808a74cdc93","block_type":"box","text":"restrictions on ownership or other consequences resulting from reaching investment thresholds. These types of","page_number":134,"box":{"x":69,"y":634,"width":796,"height":12}},{"id":"97d397c0-9704-4190-9907-c032f67cc999","block_type":"box","text":"restrictions could negatively impact a client’s performance or ability to meet its investment objective.","page_number":134,"box":{"x":69,"y":649,"width":720,"height":12}},{"id":"bdc1360e-fcb1-4517-9d65-85a2124be6f0","block_type":"box","text":"When BlackRock or a BlackRock client is subject to an ownership limitation, BlackRock may in its discretion seek","page_number":134,"box":{"x":101,"y":672,"width":807,"height":11}},{"id":"d31846fc-a079-4f12-ac0a-7834763ee325","block_type":"box","text":"permission from the applicable issuers or regulators to exceed the limitation. However, there is no guarantee that","page_number":134,"box":{"x":70,"y":687,"width":810,"height":11}},{"id":"e503b777-3c7f-4025-994b-eb5551b61bd4","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":134,"box":{"x":70,"y":702,"width":829,"height":12}},{"id":"e761ae99-6ccb-4a00-a947-40053ada6444","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":134,"box":{"x":69,"y":717,"width":824,"height":12}},{"id":"f165ce6b-4579-4242-8d7a-10a7e3e28c83","block_type":"box","text":"from taking certain actions in connection with the approval, order, consent, relief or non-disapproval, which BlackRock","page_number":134,"box":{"x":68,"y":732,"width":841,"height":12}},{"id":"10a53ef4-c7c7-4844-bad4-4677cca130d0","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":134,"box":{"x":69,"y":748,"width":770,"height":11}},{"id":"288e561b-a162-46a5-b333-ac36a1eb283d","block_type":"box","text":"otherwise would take. In those circumstances where ownership thresholds or limitations must be observed,","page_number":134,"box":{"x":69,"y":763,"width":769,"height":11}},{"id":"ba6ee18d-1c77-4718-b7e3-e10355b2a29d","block_type":"box","text":"BlackRock seeks to allocate limited investment opportunities equitably among clients, taking into consideration","page_number":134,"box":{"x":70,"y":778,"width":794,"height":11}},{"id":"6584bcda-f8bd-46a2-9084-af5af030c316","block_type":"box","text":"benchmark weight and investment strategy. BlackRock may adopt certain controls designed to prevent the","page_number":134,"box":{"x":69,"y":793,"width":757,"height":11}},{"id":"b418a26b-54e6-4476-abae-fcfc34d5e5c4","block_type":"box","text":"occurrence of a breach of any applicable ownership threshold or limits, including, for example, when ownership in","page_number":134,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"b90bd1d4-7941-4e19-b69a-9a5ff6d536fc","block_type":"box","text":"certain securities nears an applicable threshold, BlackRock may limit additional purchases in such securities or, with","page_number":134,"box":{"x":69,"y":823,"width":833,"height":11}},{"id":"3363973e-d976-456e-852f-54b8ac600e55","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":134,"box":{"x":69,"y":838,"width":827,"height":11}},{"id":"f37ec793-5929-4caf-85e1-d6372941669a","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":134,"box":{"x":68,"y":853,"width":803,"height":12}},{"id":"a8b30239-79ca-4119-ad50-7e3fc1677cca","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":134,"box":{"x":70,"y":869,"width":802,"height":11}},{"id":"654532d1-d688-458a-987d-bfe852ba379a","block_type":"box","text":"reduce these positions to meet the applicable limitations and BlackRock or such client may be subject to regulatory","page_number":134,"box":{"x":69,"y":884,"width":826,"height":11}},{"id":"225081bf-6c25-4a51-8b31-15bafa17b743","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":134,"box":{"x":69,"y":899,"width":834,"height":11}},{"id":"9d58d60b-51ac-4cab-832d-ad4e6f998eb9","block_type":"box","text":"II-96","page_number":134,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"82b841f8-cd66-4101-8ced-1f56bec7de44","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":134,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"17bba5b2-ca47-4065-a1a0-f0ed26a009ab","block_type":"box","text":"Ownership limitations are highly complex. It is possible that, despite BlackRock’s intent to either comply with or","page_number":135,"box":{"x":102,"y":45,"width":795,"height":11}},{"id":"eea75a93-0433-4ebc-97d9-f4dd63528c01","block_type":"box","text":"be granted permission to exceed ownership limitations, it may inadvertently breach a limit or violate the corporate or","page_number":135,"box":{"x":69,"y":60,"width":831,"height":11}},{"id":"753e12c8-83d3-4beb-8ab9-2124dfff7804","block_type":"box","text":"regulatory approval, order, consent, relief or non-disapproval that was obtained.","page_number":135,"box":{"x":69,"y":75,"width":566,"height":11}},{"id":"50fe36db-9f3f-431e-b3e3-eb20d649b5bd","block_type":"box","text":"In addition to the foregoing, other ownership thresholds may trigger reporting requirements to governmental and","page_number":135,"box":{"x":102,"y":98,"width":798,"height":11}},{"id":"17678d26-3705-4ea9-9f90-1e7ef802c843","block_type":"box","text":"regulatory authorities, and such reports may entail the disclosure of the identity of a client or BlackRock’s intended","page_number":135,"box":{"x":69,"y":113,"width":823,"height":11}},{"id":"f1c47cee-1adc-438f-8ad3-77dbf76bab55","block_type":"box","text":"strategy with respect to such security or asset.","page_number":135,"box":{"x":69,"y":128,"width":333,"height":11}},{"id":"29d2ff92-5ec1-46ca-8830-e719de179e13","block_type":"box","text":"BlackRock may maintain securities indices. To the extent permitted by applicable laws, the Funds may seek to","page_number":135,"box":{"x":102,"y":151,"width":785,"height":11}},{"id":"5f700751-e7f7-4b4f-95b3-10f06c7f179b","block_type":"box","text":"license and use such indices as part of their investment strategy. Index based funds that seek to track the","page_number":135,"box":{"x":70,"y":166,"width":760,"height":11}},{"id":"c1ea7ca2-8d3b-4772-8148-15572a43341f","block_type":"box","text":"performance of securities indices also may use the name of the index or index provider in the fund name. Index","page_number":135,"box":{"x":70,"y":181,"width":796,"height":11}},{"id":"0f4a1579-342a-4d64-a5b5-fb53675327bb","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":135,"box":{"x":70,"y":196,"width":830,"height":11}},{"id":"3037ae24-09c0-4793-94ca-6ef16abe39c9","block_type":"box","text":"index or index name. In instances where BlackRock charges a unitary management fee, BlackRock may have a","page_number":135,"box":{"x":70,"y":211,"width":788,"height":11}},{"id":"00550b6b-ba3b-41c7-a119-a3d6c3cd0496","block_type":"box","text":"financial incentive to use a BlackRock index that is less costly to BlackRock than a third party index. BlackRock may","page_number":135,"box":{"x":68,"y":226,"width":829,"height":11}},{"id":"7084a4ce-cc67-452a-8154-087d1c91a604","block_type":"box","text":"benefit from the Funds using BlackRock indices by creating increasing acceptance in the marketplace for such","page_number":135,"box":{"x":69,"y":241,"width":784,"height":11}},{"id":"a764b6f2-012d-4d1c-a28a-e5e5c9f54bd0","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":135,"box":{"x":70,"y":257,"width":797,"height":11}},{"id":"4bf15b89-355f-4daa-8842-61b2a73ce5c6","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":135,"box":{"x":70,"y":271,"width":837,"height":12}},{"id":"c41791ea-426b-4adb-9c7d-197d0fe856a1","block_type":"box","text":"index licensing agreement with BlackRock will be as favorable as those terms offered to other licensees.","page_number":135,"box":{"x":70,"y":286,"width":746,"height":12}},{"id":"1bf1c804-9db7-477a-a7b8-f15489fc0891","block_type":"box","text":"BlackRock may enter into contractual arrangements with third-party service providers to a Fund (","page_number":135,"box":{"x":102,"y":309,"width":686,"height":11}},{"id":"572b5bb8-b774-4687-9f93-b3bbe917ef4c","block_type":"box","text":"e.g.","page_number":135,"box":{"x":790,"y":311,"width":25,"height":9}},{"id":"1fb3d88e-2f52-43e7-845c-42142a2604f1","block_type":"box","text":", custodians,","page_number":135,"box":{"x":817,"y":309,"width":90,"height":11}},{"id":"f61cc110-9653-4002-8d5c-a21b6c7d1091","block_type":"box","text":"administrators and index providers) pursuant to which BlackRock receives fee discounts or concessions in","page_number":135,"box":{"x":69,"y":324,"width":756,"height":11}},{"id":"bab9865b-ee4b-4df2-b2aa-bb32fbd71483","block_type":"box","text":"recognition of BlackRock’s overall relationship with such service providers. BlackRock may also enter into contractual","page_number":135,"box":{"x":69,"y":339,"width":836,"height":12}},{"id":"276d133e-2437-4c6e-843f-552c3bc4fe93","block_type":"box","text":"arrangements with such service providers pursuant to which BlackRock incurs additional costs if the service","page_number":135,"box":{"x":69,"y":355,"width":772,"height":11}},{"id":"68ad0013-b670-4a46-9474-088f65241db9","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":135,"box":{"x":70,"y":370,"width":800,"height":11}},{"id":"c10a89e5-aab6-45ed-98ac-aff7356988e4","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":135,"box":{"x":69,"y":385,"width":771,"height":11}},{"id":"22b2a8e9-cb0a-4e31-8110-116914df3b11","block_type":"box","text":"discounts or concessions, or any additional savings, may accrue, in whole or in part, to BlackRock, which could result","page_number":135,"box":{"x":69,"y":400,"width":839,"height":11}},{"id":"02262dcf-b308-4b74-adfc-69166f17857f","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":135,"box":{"x":70,"y":415,"width":785,"height":11}},{"id":"488d6f7d-c033-49f6-b3e4-0f2a608b7b60","block_type":"box","text":"interest may arise with respect to contractual arrangements with third-party service providers to a Fund, or the","page_number":135,"box":{"x":70,"y":430,"width":786,"height":11}},{"id":"63aaaee8-7c97-437e-914e-998a66b6a4c8","block_type":"box","text":"selection of such providers, particularly in circumstances where BlackRock is negotiating on behalf of both funds that","page_number":135,"box":{"x":69,"y":445,"width":837,"height":12}},{"id":"4cce637c-633e-4db9-a65a-0deb06210464","block_type":"box","text":"have a unitary management fee and those that do not or different service providers have different fee structures.","page_number":135,"box":{"x":69,"y":460,"width":809,"height":12}},{"id":"517cd358-b2e3-4bd3-9a95-44530ac9d1ef","block_type":"box","text":"Conflicts of interest may arise as a result of simultaneous investment management of multiple client accounts","page_number":135,"box":{"x":102,"y":483,"width":788,"height":11}},{"id":"00bbf83a-cb4c-41a7-b38c-867ddd61a5b7","block_type":"box","text":"by BlackRock’s investment professionals. For example, differences in the advisory fee structure may create the","page_number":135,"box":{"x":69,"y":498,"width":795,"height":11}},{"id":"d2eb84c4-2eef-4f3b-8d00-95473e31eb50","block_type":"box","text":"appearance of actual or potential conflicts of interest because such differences could create pecuniary incentives for","page_number":135,"box":{"x":69,"y":513,"width":835,"height":11}},{"id":"6c060375-46bd-40fe-bf67-d9974f2e1066","block_type":"box","text":"BlackRock to favor one client account over another.","page_number":135,"box":{"x":70,"y":528,"width":363,"height":9}},{"id":"b59c2467-7ed7-40d9-998f-aee6a1cd942a","block_type":"box","text":"BlackRock owns or has an ownership interest in certain trading, portfolio management, operations and/or","page_number":135,"box":{"x":102,"y":551,"width":757,"height":11}},{"id":"09afd22d-2adf-4841-9bc8-fc61a5c62bb4","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":135,"box":{"x":70,"y":566,"width":826,"height":11}},{"id":"bcc6ed91-8a1f-4f86-bb8c-ce56f80d3480","block_type":"box","text":"in connection with the provision of services to accounts managed by BlackRock and funds managed and sponsored","page_number":135,"box":{"x":70,"y":581,"width":822,"height":12}},{"id":"c3addbc2-21b9-4efc-82f9-b8265b748fd8","block_type":"box","text":"by BlackRock, including the Funds, that engage the service provider (typically the custodian). A Fund’s service","page_number":135,"box":{"x":69,"y":597,"width":782,"height":11}},{"id":"4923db68-eb73-452d-b863-33ea1d8552c5","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":135,"box":{"x":70,"y":612,"width":835,"height":11}},{"id":"422f9a22-1369-4441-9d63-6ca8a5b07a40","block_type":"box","text":"use of these systems may enhance the profitability of BlackRock.","page_number":135,"box":{"x":69,"y":627,"width":465,"height":11}},{"id":"07f2dfc4-8c3c-4661-bd52-697fa6c617a3","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":135,"box":{"x":102,"y":649,"width":804,"height":12}},{"id":"4c78f055-19ec-4595-9af6-33d711060070","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":135,"box":{"x":69,"y":664,"width":840,"height":12}},{"id":"d311ef4b-dd5f-4fe5-bc93-b825c60b62db","block_type":"box","text":"provider.","page_number":135,"box":{"x":70,"y":680,"width":58,"height":11}},{"id":"db21c745-e09a-4f39-81ab-65fb4dc241ee","block_type":"box","text":"In recognition of a BlackRock client’s overall relationship with BlackRock, BlackRock may offer special pricing","page_number":135,"box":{"x":102,"y":702,"width":778,"height":12}},{"id":"fd5b991a-0250-4bd2-bb9f-2510e90efc78","block_type":"box","text":"arrangements for certain services provided by BlackRock. Any such special pricing arrangements will not affect Fund","page_number":135,"box":{"x":69,"y":717,"width":831,"height":12}},{"id":"572110bb-c1af-4732-9eb8-005115e3e24e","block_type":"box","text":"fees and expenses applicable to such client’s investment in a Fund.","page_number":135,"box":{"x":68,"y":732,"width":485,"height":11}},{"id":"46e489fe-0e38-4b3a-8f8a-7cb9f7f3fd27","block_type":"box","text":"Present and future activities of BlackRock and its directors, officers and employees, in addition to those","page_number":135,"box":{"x":102,"y":755,"width":742,"height":11}},{"id":"8f0c34ac-e95d-4135-859d-39c2bc73c9c0","block_type":"box","text":"described in this section, may give rise to additional conflicts of interest.","page_number":135,"box":{"x":69,"y":770,"width":517,"height":12}},{"id":"177917eb-2a36-4f20-a3b0-4de4037413cd","block_type":"box","text":"PURCHASE OF SHARES","page_number":135,"box":{"x":395,"y":800,"width":188,"height":10}},{"id":"bfa40bb2-443e-4cfd-a922-36f3c1a7ac90","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":135,"box":{"x":102,"y":823,"width":800,"height":11}},{"id":"47ba0b75-0ff9-488d-b833-c6e1b8dcfd69","block_type":"box","text":"under the Investment Company Act. Investor A Shares are sold to investors choosing the initial sales charge","page_number":135,"box":{"x":69,"y":838,"width":771,"height":11}},{"id":"a693356c-9637-4c67-91c1-6a30fa2cafc7","block_type":"box","text":"alternative, except that Investor A Shares of Index Funds (defined below) and BlackRock Short Obligations Fund are","page_number":135,"box":{"x":69,"y":853,"width":822,"height":11}},{"id":"3587fa21-f007-4619-8182-d511c2e93b8b","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":135,"box":{"x":68,"y":868,"width":809,"height":11}},{"id":"50265637-55dc-42e2-b059-e8b2aff87638","block_type":"box","text":"sales charge alternative. Investor P Shares are available only to certain investors purchasing shares of Funds","page_number":135,"box":{"x":69,"y":883,"width":781,"height":11}},{"id":"1dabde53-9b43-4233-a47c-67e06f3044bf","block_type":"box","text":"through registered representatives of an insurance company’s broker-dealer that has entered into an agreement with","page_number":135,"box":{"x":68,"y":898,"width":833,"height":11}},{"id":"2e4a0b57-164d-41cc-bf62-97e14f586402","block_type":"box","text":"II-97","page_number":135,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"82f4ba26-e1b3-47b1-b0fa-2add7a046dfc","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":135,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e73eb1fc-7df7-4661-81cd-527e9ce2e653","block_type":"box","text":"the Distributor to offer such shares. Institutional Shares are sold to certain eligible investors without a sales charge.","page_number":136,"box":{"x":68,"y":45,"width":833,"height":11}},{"id":"e7b298aa-037e-4e60-beae-73aa9ad67cdc","block_type":"box","text":"Certain Funds offer Class R Shares, which are available only to certain employer-sponsored retirement plans and are","page_number":136,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"f349b903-ee40-42fe-a88e-798c293ef597","block_type":"box","text":"sold without a sales charge. Certain Funds offer Class G Shares, which are available only to investors on eligible","page_number":136,"box":{"x":69,"y":75,"width":804,"height":11}},{"id":"00db4f53-d2c0-4f3f-a22e-dae4a0e85be2","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":136,"box":{"x":70,"y":90,"width":816,"height":11}},{"id":"ff6020d5-5d58-47be-8ec8-faf4bcecc707","block_type":"box","text":"financial intermediary that meets an initial investment minimum of $2 billion. In addition, certain Funds offer Service","page_number":136,"box":{"x":68,"y":104,"width":835,"height":12}},{"id":"ae47969b-74e0-43c4-b615-369938d535a8","block_type":"box","text":"Shares, BlackRock Shares and/or Class K Shares that are available only to certain eligible investors. Please see the","page_number":136,"box":{"x":69,"y":120,"width":834,"height":12}},{"id":"83119ff6-44eb-4f00-bd57-6f14b503c5bd","block_type":"box","text":"appropriate Prospectus for your Fund to determine which classes are offered by your Fund and under what","page_number":136,"box":{"x":69,"y":135,"width":757,"height":11}},{"id":"84dec7fd-b121-450c-8d54-3dcf3a78d4bd","block_type":"box","text":"circumstances. Each class has different exchange privileges. See “Shareholder Services — Exchange Privilege.”","page_number":136,"box":{"x":69,"y":150,"width":802,"height":12}},{"id":"85cee140-b1e9-479c-863c-a1da0c9f580e","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":136,"box":{"x":101,"y":173,"width":799,"height":11}},{"id":"d21e8d76-3970-4a56-8788-01cf0c0084de","block_type":"box","text":"the purchase order by a dealer or other financial intermediary (“Selling Dealer”) that has been authorized by the","page_number":136,"box":{"x":68,"y":188,"width":798,"height":12}},{"id":"b948789f-9996-440d-a024-a9b28b3748c4","block_type":"box","text":"Distributor by contract to accept such orders. In addition, with respect to the affiliated underlying funds in which","page_number":136,"box":{"x":70,"y":203,"width":795,"height":12}},{"id":"39de88a1-e0a1-4664-ad30-dce17eed2144","block_type":"box","text":"target date funds advised by BlackRock or its affiliates (“BlackRock Target Date Funds”) invest, the applicable","page_number":136,"box":{"x":68,"y":218,"width":786,"height":12}},{"id":"8a8c2d70-f574-4093-9685-e9e345b7ec0c","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":136,"box":{"x":69,"y":234,"width":839,"height":11}},{"id":"5eaacd63-df7a-4f66-9f1e-84ef42569805","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":136,"box":{"x":69,"y":249,"width":795,"height":11}},{"id":"fbbb7865-cb7e-4b0f-8235-073aa1aa8506","block_type":"box","text":"Target Date Funds that allocate a portion of such purchase order to such affiliated underlying fund. As to purchase","page_number":136,"box":{"x":68,"y":264,"width":819,"height":11}},{"id":"29d65cb0-1886-4a5f-9416-373427813e02","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":136,"box":{"x":69,"y":279,"width":808,"height":11}},{"id":"1a2af70c-6295-4459-9e67-8546b23e5d15","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":136,"box":{"x":69,"y":294,"width":803,"height":11}},{"id":"9dd93d5b-f38f-4d04-b6b5-66fe1c8e49d4","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":136,"box":{"x":70,"y":309,"width":812,"height":11}},{"id":"5cc8b37d-5920-493a-8519-b65dbd7cd839","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":136,"box":{"x":68,"y":324,"width":828,"height":11}},{"id":"2ea4035a-77a6-4fce-b346-b867372e0c76","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":136,"box":{"x":68,"y":339,"width":788,"height":12}},{"id":"f0567cf2-8021-4199-a5d5-08dfea9ea697","block_type":"box","text":"deemed received on the next business day. It is the responsibility of brokers to transmit purchase orders and","page_number":136,"box":{"x":69,"y":355,"width":779,"height":11}},{"id":"175f2f29-4e1f-451a-b036-3577bb334229","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":136,"box":{"x":70,"y":370,"width":830,"height":11}},{"id":"5779d5bb-ccc8-45e3-a672-5c6ad770e74d","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":136,"box":{"x":69,"y":385,"width":828,"height":11}},{"id":"c48d3e1a-11f9-4bb6-b593-f399ca6ad33d","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":136,"box":{"x":68,"y":399,"width":762,"height":12}},{"id":"a2126c4e-f350-4abd-9ede-e0fe1f9f56ab","block_type":"box","text":"The minimum investment for the initial purchase of shares is set forth in the Prospectus for each Fund. The","page_number":136,"box":{"x":101,"y":423,"width":768,"height":11}},{"id":"f888b6ca-9945-400e-92d8-c7ead124a946","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":136,"box":{"x":69,"y":438,"width":819,"height":11}},{"id":"34cca877-90c2-4c4f-a015-6e1cd40931fc","block_type":"box","text":"affiliates is $100, unless payment is made through a payroll deduction program in which case the minimum","page_number":136,"box":{"x":69,"y":452,"width":769,"height":12}},{"id":"5ec4c935-869a-4bae-8d61-4ebb94d7ca37","block_type":"box","text":"investment is $25.","page_number":136,"box":{"x":70,"y":467,"width":132,"height":11}},{"id":"ef1f348f-663e-492a-9930-039b88003435","block_type":"box","text":"Each Fund has lower investment minimums for other categories of shareholders eligible to purchase Institutional","page_number":136,"box":{"x":102,"y":491,"width":802,"height":11}},{"id":"5c690900-846c-4a7e-a991-b972167af542","block_type":"box","text":"Shares, including selected fee-based programs. Each Fund may permit a lower initial investment for certain investors","page_number":136,"box":{"x":69,"y":506,"width":833,"height":11}},{"id":"2d5a41c7-4c2f-4cda-8859-075475f13550","block_type":"box","text":"if their purchase, combined with purchases by other investors received together by the Fund, meets the minimum","page_number":136,"box":{"x":70,"y":521,"width":806,"height":11}},{"id":"5ae7f9a7-c813-4b97-b849-45b8ae3d9437","block_type":"box","text":"investment requirement. Each Fund may reject any purchase order, modify or waive the minimum initial or","page_number":136,"box":{"x":70,"y":536,"width":751,"height":11}},{"id":"03aea466-e390-489f-91a4-292d3d59bd20","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":136,"box":{"x":69,"y":551,"width":826,"height":11}},{"id":"6cb37bc9-b985-46a7-8b46-b465fec6add1","block_type":"box","text":"Financial intermediaries may, in connection with a change in account type or otherwise in accordance with a","page_number":136,"box":{"x":102,"y":574,"width":768,"height":11}},{"id":"1bf5f48a-9431-4605-b82f-ea4d0e48188b","block_type":"box","text":"financial intermediary’s policies and procedures, exchange shares of a Fund from one class of shares to another","page_number":136,"box":{"x":68,"y":589,"width":807,"height":11}},{"id":"a5dfacfc-9a28-40fe-9cc9-63b4c06e82e4","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":136,"box":{"x":69,"y":604,"width":836,"height":11}},{"id":"efb73e3b-1e5b-4ea4-92e3-adadc2fa6097","block_type":"box","text":"charge (“CDSC”) and that shareholders meet eligibility requirements of the new share class. Please speak to your","page_number":136,"box":{"x":69,"y":619,"width":814,"height":11}},{"id":"5a7359fd-20d1-442d-a40a-73915177ed00","block_type":"box","text":"financial intermediary for information about specific policies and procedures applicable to your account.","page_number":136,"box":{"x":68,"y":634,"width":740,"height":11}},{"id":"5c614fdd-a4ee-460c-a517-30d1e0f2f420","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":136,"box":{"x":102,"y":657,"width":795,"height":11}},{"id":"c09b7d80-c4db-415d-9732-beecb952e66b","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":136,"box":{"x":70,"y":672,"width":813,"height":11}},{"id":"d6f500d2-421e-4c55-b902-30161b93ee0b","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":136,"box":{"x":68,"y":687,"width":827,"height":11}},{"id":"94d0e8fb-7a76-4586-ade9-bba47391db76","block_type":"box","text":"financial intermediaries are permitted to withhold placing orders to benefit themselves by a price change.","page_number":136,"box":{"x":68,"y":702,"width":750,"height":12}},{"id":"83d2eb48-8886-48fb-b0c8-cd374a901fd0","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":136,"box":{"x":101,"y":725,"width":776,"height":11}},{"id":"7762c8e8-7205-462c-9015-d3944247d294","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":136,"box":{"x":69,"y":740,"width":831,"height":11}},{"id":"cfac7e97-c3f1-4061-9a70-50d699e59836","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":136,"box":{"x":69,"y":755,"width":822,"height":11}},{"id":"b42d4cc8-c19a-4afb-a7be-b8cc4e3de14e","block_type":"box","text":"single fiduciary account although more than one beneficiary may be involved. The term “purchase” also includes","page_number":136,"box":{"x":69,"y":770,"width":802,"height":12}},{"id":"0239f486-4f27-4957-996b-3824ebb45662","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":136,"box":{"x":70,"y":785,"width":839,"height":12}},{"id":"6cc75640-536a-424e-a1ba-6f7d52be3cb6","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":136,"box":{"x":69,"y":801,"width":819,"height":11}},{"id":"e0e2adf4-2968-4187-b4bf-ff4c2cc2ee66","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":136,"box":{"x":68,"y":816,"width":827,"height":11}},{"id":"2aa3b8f2-17e0-436b-abc6-2a64d6a7236c","block_type":"box","text":"group of individuals whose sole organizational nexus is that its participants are credit cardholders of a company,","page_number":136,"box":{"x":68,"y":831,"width":803,"height":11}},{"id":"cb4162b4-9651-49b3-88f7-2f7bc08c9e4c","block_type":"box","text":"policyholders of an insurance company, customers of either a bank or broker-dealer or clients of an investment","page_number":136,"box":{"x":70,"y":846,"width":788,"height":11}},{"id":"d72fa84d-d6a7-46ba-90d1-3343190e5e13","block_type":"box","text":"adviser.","page_number":136,"box":{"x":69,"y":861,"width":53,"height":9}},{"id":"c978372f-3ccd-4be7-bcaf-26ae0a0f053e","block_type":"box","text":"With certain limited exceptions, the Funds are generally available only to investors residing in the United States","page_number":136,"box":{"x":101,"y":884,"width":795,"height":11}},{"id":"81a0c57b-a917-4689-80c4-0efe73f64445","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":136,"box":{"x":69,"y":899,"width":821,"height":11}},{"id":"00ec1972-2f0d-4577-9fa2-dd4ba0a73285","block_type":"box","text":"II-98","page_number":136,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7442e865-0249-4222-aa2d-7b43f486e15e","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":136,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"29f9e409-32aa-4eaf-8276-aa0e5fca0f3b","block_type":"box","text":"additional investments (including by way of exchange from another Fund) into existing accounts, a Fund generally","page_number":137,"box":{"x":69,"y":45,"width":803,"height":11}},{"id":"bbb5833b-cfbc-483b-a21d-feccb9f19e45","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":137,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"92bd858c-c6b4-4b58-bbef-83f49091b336","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":137,"box":{"x":68,"y":75,"width":747,"height":11}},{"id":"7ec2259f-a81c-4e27-a838-b8da7a702d76","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":137,"box":{"x":70,"y":90,"width":809,"height":11}},{"id":"f77b2605-abe9-4d01-9b8c-3b7e23e2a068","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":137,"box":{"x":69,"y":105,"width":819,"height":11}},{"id":"c4eabc30-ffaf-478f-9328-9e8e72f43c40","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":137,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"801dca96-104a-401f-be07-9c4c14fbcad6","block_type":"box","text":"also be restricted from making additional investments.","page_number":137,"box":{"x":69,"y":135,"width":388,"height":12}},{"id":"8b424c13-a865-47f7-abfc-5b9ab18f9fdd","block_type":"box","text":"In-Kind Purchases","page_number":137,"box":{"x":102,"y":158,"width":127,"height":9}},{"id":"e85dd09d-8980-43aa-8e19-d16944b19134","block_type":"box","text":". Payment for shares of a Fund may, at the discretion of BlackRock, be made in the form of","page_number":137,"box":{"x":230,"y":158,"width":649,"height":11}},{"id":"08512ac7-d6f0-463f-a3e5-9e06e4637881","block_type":"box","text":"securities that are permissible investments for the Fund and that meet the investment objective, policies and","page_number":137,"box":{"x":69,"y":173,"width":779,"height":11}},{"id":"5eedfbbe-88cc-4a17-9733-624dd763097c","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":137,"box":{"x":70,"y":188,"width":820,"height":11}},{"id":"c8484fb6-7acb-4b91-808d-ee883884cbda","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":137,"box":{"x":69,"y":203,"width":827,"height":12}},{"id":"06a8cfb2-c2e4-4a34-8351-4276dfc2997e","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":137,"box":{"x":69,"y":218,"width":831,"height":12}},{"id":"9a8e89b0-1791-4b8e-a267-06df357519ab","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":137,"box":{"x":69,"y":234,"width":817,"height":11}},{"id":"c6914f05-7f71-47c2-a2e2-3883280868ab","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":137,"box":{"x":68,"y":249,"width":837,"height":11}},{"id":"006866e4-ea8c-4043-82a9-1b2a5e27f0bf","block_type":"box","text":"securities. All dividends, interest, subscription or other rights pertaining to such securities shall become the property","page_number":137,"box":{"x":69,"y":264,"width":835,"height":11}},{"id":"9452c702-1f9b-474e-bb23-52da2b789610","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":137,"box":{"x":69,"y":279,"width":795,"height":11}},{"id":"d1efe0ad-2772-442a-81cb-e07d4fd1f01b","block_type":"box","text":"receipt from the issuer. Shares purchased in exchange for securities generally cannot be redeemed until the transfer","page_number":137,"box":{"x":69,"y":294,"width":833,"height":11}},{"id":"49961a6c-2e00-4947-a3e4-54e0de02adec","block_type":"box","text":"has settled.","page_number":137,"box":{"x":69,"y":309,"width":83,"height":9}},{"id":"fc3b5e70-aac3-40c2-b881-593dd54b1167","block_type":"box","text":"Institutional Shares","page_number":137,"box":{"x":69,"y":340,"width":142,"height":8}},{"id":"c3fabf59-6406-4276-bfdc-c677a34a99cd","block_type":"box","text":"Institutional Shares may be purchased at NAV without a sales charge. Only certain investors are eligible to","page_number":137,"box":{"x":102,"y":362,"width":759,"height":11}},{"id":"d3b84c3d-15ea-460f-8909-d6b17f88566d","block_type":"box","text":"purchase Institutional Shares. Investors who are eligible to purchase Institutional Shares should purchase","page_number":137,"box":{"x":70,"y":377,"width":756,"height":12}},{"id":"f6b9602b-901f-4444-a357-1fccc9a4fda8","block_type":"box","text":"Institutional Shares because they are not subject to any sales charge and have lower ongoing expenses than","page_number":137,"box":{"x":70,"y":392,"width":775,"height":12}},{"id":"6badcde2-e38c-4e16-82c8-4d04ed6788e8","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":137,"box":{"x":70,"y":407,"width":839,"height":12}},{"id":"3d4d1bcf-c9e2-4ba9-a6ac-6ab35e114923","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":137,"box":{"x":69,"y":423,"width":807,"height":11}},{"id":"818ea9bb-e226-4445-91a9-cd95687011fb","block_type":"box","text":"sale of shares of any Fund at any time.","page_number":137,"box":{"x":69,"y":438,"width":276,"height":11}},{"id":"73e67431-768d-4bf0-ba48-895271187d8d","block_type":"box","text":"Eligible Institutional Share Investors.","page_number":137,"box":{"x":102,"y":460,"width":259,"height":12}},{"id":"75cb1b18-0150-4dae-889d-0f2fc07bdea6","block_type":"box","text":"Institutional Shares of the Funds may be purchased by customers of broker","page_number":137,"box":{"x":369,"y":460,"width":540,"height":12}},{"id":"9b3d45dd-57db-4194-a247-ca736b59a604","block_type":"box","text":"dealers and agents that have established a servicing relationship with the Fund on behalf of their customers. These","page_number":137,"box":{"x":69,"y":475,"width":826,"height":12}},{"id":"2ce73fd2-0a78-412b-af0d-a87ce3ea85a4","block_type":"box","text":"broker-dealers and agents may impose additional or different conditions on the purchase or redemption of Fund","page_number":137,"box":{"x":69,"y":491,"width":796,"height":11}},{"id":"86ab000a-9e82-4993-a96d-4b1f29d43f47","block_type":"box","text":"shares by their customers and may charge their customers transaction, account or other fees on the purchase and","page_number":137,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"d50f2852-f5e5-47f1-92ad-2b90ca630a97","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":137,"box":{"x":69,"y":521,"width":840,"height":11}},{"id":"90a86900-bc20-476f-857d-d9056e841af1","block_type":"box","text":"any such fees and information regarding any additional or different conditions regarding purchases and redemptions.","page_number":137,"box":{"x":69,"y":536,"width":833,"height":11}},{"id":"c0ab53a9-f547-464c-8bab-faa72cfe199d","block_type":"box","text":"Shareholders who are customers of such broker-dealers or agents should consult them for information regarding","page_number":137,"box":{"x":69,"y":551,"width":802,"height":11}},{"id":"af116ded-751d-4512-84fe-c21b7431f53a","block_type":"box","text":"these fees and conditions.","page_number":137,"box":{"x":68,"y":566,"width":189,"height":9}},{"id":"9cf1f448-7d4b-4cb1-a522-57784a517012","block_type":"box","text":"Payment for Institutional Shares must normally be made in Federal funds or other funds immediately available by","page_number":137,"box":{"x":102,"y":589,"width":805,"height":11}},{"id":"08394b6e-297c-46b9-a2fa-0e2626495ff6","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":137,"box":{"x":69,"y":604,"width":825,"height":11}},{"id":"1b7f6bad-00d2-42c4-a2aa-2fd2839b479a","block_type":"box","text":"certain Funds, be made in the form of securities that are permissible investments for such Funds. If payment for a","page_number":137,"box":{"x":69,"y":619,"width":817,"height":11}},{"id":"904d4b7a-37e6-4484-9f79-a7ad571d4480","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":137,"box":{"x":70,"y":634,"width":831,"height":12}},{"id":"bc57aa29-d677-4a54-9a9b-9c24e2cd4ec5","block_type":"box","text":"incurred by the Fund.","page_number":137,"box":{"x":70,"y":650,"width":147,"height":11}},{"id":"d142bfd2-1705-481d-8111-7bfabdaf663c","block_type":"box","text":"Certain of the Funds offer Institutional Shares as described in each such Fund’s Prospectus. In addition, the","page_number":137,"box":{"x":102,"y":672,"width":774,"height":11}},{"id":"8311b004-e2f5-452e-ba3b-7e01374ad1ab","block_type":"box","text":"following investors may purchase Institutional Shares: employees, officers and directors/trustees of BlackRock, Inc.,","page_number":137,"box":{"x":68,"y":687,"width":834,"height":11}},{"id":"afb2f7f2-5404-451b-b627-220a9dff4e14","block_type":"box","text":"BlackRock Funds, Bank of America Corporation (“BofA Corp.”), Barclays PLC or their respective affiliates and","page_number":137,"box":{"x":70,"y":702,"width":773,"height":11}},{"id":"24579284-ed24-4cdc-92c6-bf1d1a01b191","block_type":"box","text":"immediate family members of such persons, individuals and “Institutional Investors” with a minimum initial","page_number":137,"box":{"x":70,"y":717,"width":762,"height":12}},{"id":"cee2b201-abb5-4434-8492-6d81d1f26c30","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":137,"box":{"x":70,"y":732,"width":821,"height":12}},{"id":"856cfc75-cea1-477d-8d9b-a26eada568ca","block_type":"box","text":"an agreement with the Distributor to purchase such shares (“Institutional Investors” include, but are not limited to,","page_number":137,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"152bae25-020f-4382-a7e2-5453396028ba","block_type":"box","text":"endowments, foundations, family offices, local, city, and state governmental institutions, corporations, and insurance","page_number":137,"box":{"x":69,"y":763,"width":836,"height":11}},{"id":"b5c2dee6-4c8e-4349-a133-1c37c0bfb72c","block_type":"box","text":"company separate accounts); employer-sponsored retirement plans (which, for this purpose, do not include SEP IRAs,","page_number":137,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"12afd426-0e29-4616-9318-46ed6aeab862","block_type":"box","text":"SIMPLE IRAs or SARSEPs), state sponsored 529 college savings plans, collective trust funds, investment companies","page_number":137,"box":{"x":69,"y":793,"width":832,"height":11}},{"id":"aafb8b18-b360-4376-81e8-b4aae706c29d","block_type":"box","text":"or other pooled investment vehicles, unaffiliated thrifts and unaffiliated banks and trust companies, each of which","page_number":137,"box":{"x":69,"y":808,"width":815,"height":11}},{"id":"a1887541-42f1-4f0d-a6fc-1fb149ec8e71","block_type":"box","text":"may purchase shares of the Fund through a financial intermediary that has entered into an agreement with the","page_number":137,"box":{"x":69,"y":823,"width":789,"height":12}},{"id":"dc50b421-7e31-4706-88a3-b455115a3e62","block_type":"box","text":"Distributor to purchase such shares; clients investing through a self-directed IRA brokerage account program","page_number":137,"box":{"x":70,"y":838,"width":772,"height":12}},{"id":"9ce333f6-8df8-47a0-bb75-bcd66a6bf37f","block_type":"box","text":"sponsored by a retirement plan record-keeper, provided that such program offers only mutual fund options and that","page_number":137,"box":{"x":69,"y":853,"width":822,"height":12}},{"id":"77f619bc-0486-4248-960a-a189623b7215","block_type":"box","text":"the program maintains an account with the Fund on an omnibus basis; clients of financial intermediaries that:","page_number":137,"box":{"x":68,"y":869,"width":783,"height":11}},{"id":"76a5fd2f-4b74-47aa-8e38-25e749dabc70","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":137,"box":{"x":69,"y":884,"width":785,"height":11}},{"id":"5e4fbfd0-8091-40d7-8ae2-5c29f32ee33d","block_type":"box","text":"agreement with the Distributor to offer Institutional Shares through a no-load program or investment platform, in each","page_number":137,"box":{"x":69,"y":899,"width":838,"height":11}},{"id":"b0d5aca2-2146-49d9-8d6b-6282f602e544","block_type":"box","text":"II-99","page_number":137,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"74f29d2c-9406-409f-9251-0854bdb54b5a","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":137,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0e02768d-60d2-454b-be81-6aad6f0679b0","block_type":"box","text":"case, with no minimum initial investment; clients investing through financial intermediaries that have entered into an","page_number":138,"box":{"x":69,"y":45,"width":831,"height":11}},{"id":"a75f9702-0aa8-4802-8b1a-7b4904c202c7","block_type":"box","text":"agreement with the Distributor to offer such shares on a platform that charges a transaction based sales","page_number":138,"box":{"x":69,"y":60,"width":751,"height":11}},{"id":"2976fa97-697e-45f5-9efd-533690ad05b2","block_type":"box","text":"commission outside of the Fund, with a minimum initial investment of $1,000; tax-qualified accounts for insurance","page_number":138,"box":{"x":69,"y":74,"width":817,"height":12}},{"id":"0665bbed-7d14-4587-b9f8-0658638f9fe2","block_type":"box","text":"agents that are registered representatives of an insurance company’s broker-dealer that has entered into an","page_number":138,"box":{"x":69,"y":90,"width":773,"height":11}},{"id":"5f081edb-897d-402f-ad11-af1889a595f6","block_type":"box","text":"agreement with the Distributor to offer Institutional Shares, and the family members of such persons, with a","page_number":138,"box":{"x":69,"y":105,"width":771,"height":11}},{"id":"4b7bede9-8456-4dc7-a847-a71ca4ef0b38","block_type":"box","text":"minimum initial investment of $1,000; trust department clients of Bank of America, N.A. and its affiliates for whom","page_number":138,"box":{"x":69,"y":120,"width":822,"height":11}},{"id":"efe0f20e-e2ea-4998-8e59-76efc1be5a49","block_type":"box","text":"they (i) act in a fiduciary capacity (excluding participant directed employee benefit plans), (ii) otherwise have","page_number":138,"box":{"x":68,"y":135,"width":771,"height":12}},{"id":"cb93a456-778e-42fb-a3d8-81577bad32dc","block_type":"box","text":"investment discretion, or (iii) act as custodian for at least $2 million in assets; and holders of certain BofA Corp.","page_number":138,"box":{"x":70,"y":150,"width":801,"height":11}},{"id":"203dda93-e79f-471b-b46d-58de0fbe52a8","block_type":"box","text":"sponsored unit investment trusts (UITs) who reinvest dividends received from such UITs in shares of a Fund.","page_number":138,"box":{"x":69,"y":166,"width":770,"height":11}},{"id":"a484bbf3-a94e-4338-af27-1f1e515b7b38","block_type":"box","text":"Purchase Privileges of Cer tain Persons.","page_number":138,"box":{"x":102,"y":188,"width":280,"height":12}},{"id":"bc69909e-9225-4096-b59f-95fc74501e1c","block_type":"box","text":"Employees, officers, directors/trustees of BlackRock, Inc., BlackRock","page_number":138,"box":{"x":389,"y":188,"width":496,"height":11}},{"id":"b1e06a62-9790-4842-8938-aab46e473deb","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":138,"box":{"x":70,"y":203,"width":812,"height":12}},{"id":"a383c1be-d93e-4848-bd3f-1f9a9110a029","block_type":"box","text":"persons may purchase Institutional Shares at lower investment minimums than stated in each Fund’s Prospectus. A","page_number":138,"box":{"x":70,"y":219,"width":828,"height":11}},{"id":"3624d9c0-b586-4249-8fdc-4337c39b9081","block_type":"box","text":"Fund realizes economies of scale and reduction of sales-related expenses by virtue of the familiarity of these persons","page_number":138,"box":{"x":70,"y":234,"width":838,"height":11}},{"id":"e765ba6b-9224-4321-8cc9-656d297320ee","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":138,"box":{"x":68,"y":249,"width":826,"height":11}},{"id":"89a6a0ee-1fc6-430f-af8a-6ae7ce97b74b","block_type":"box","text":"satisfy the Fund’s suitability standards.","page_number":138,"box":{"x":69,"y":264,"width":279,"height":11}},{"id":"77a1655b-0bfb-4a24-95ee-071cc2f25034","block_type":"box","text":"Initial Sales Charge Alternative — Investor A Shares","page_number":138,"box":{"x":69,"y":294,"width":382,"height":11}},{"id":"d98aea6f-9d44-484c-8319-44f4a1b9d0e2","block_type":"box","text":"Investors who prefer an initial sales charge alternative may elect to purchase Investor A Shares. Investor A1","page_number":138,"box":{"x":102,"y":317,"width":770,"height":11}},{"id":"f3ed0a8d-683c-4ff0-8724-26d53a887bcf","block_type":"box","text":"Shares are offered only (i) for purchase by certain employer-sponsored retirement plans and fee-based programs that","page_number":138,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"48320641-0149-4ce0-9b98-bb268c6881ff","block_type":"box","text":"have been previously approved by certain Funds, and (ii) to certain investors who currently hold Investor A1 Shares","page_number":138,"box":{"x":69,"y":347,"width":819,"height":11}},{"id":"08e99b27-df01-49bc-82b3-25763e186788","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":138,"box":{"x":68,"y":362,"width":840,"height":11}},{"id":"178b436a-080d-4242-936a-06362fa8ac28","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":138,"box":{"x":69,"y":377,"width":815,"height":11}},{"id":"f2be133d-e3ea-4583-b3f7-e99402748757","block_type":"box","text":"sometimes referred to herein as “front-end load shares.” Investor A Shares of Index Funds (defined below) and","page_number":138,"box":{"x":69,"y":392,"width":791,"height":11}},{"id":"e89a1515-3feb-4c2b-aa54-4643d046826d","block_type":"box","text":"BlackRock Short Obligations Fund generally are not subject to an initial sales charge or front-end load.","page_number":138,"box":{"x":70,"y":407,"width":727,"height":12}},{"id":"bd05fb62-2b5c-476b-87a0-5fe903aa7080","block_type":"box","text":"Investors qualifying for significantly reduced initial sales charges may find the initial sales charge alternative","page_number":138,"box":{"x":102,"y":430,"width":770,"height":11}},{"id":"9c66effb-aa0d-4ceb-aa42-409c4a87edd8","block_type":"box","text":"particularly attractive because similar sales charge reductions are not available with respect to the deferred sales","page_number":138,"box":{"x":70,"y":445,"width":812,"height":12}},{"id":"36c6bf1a-2f19-4f07-b34f-daeb31d5e65f","block_type":"box","text":"charges imposed in connection with investments in Investor C Shares (sometimes referred to herein as “CDSC","page_number":138,"box":{"x":69,"y":460,"width":791,"height":12}},{"id":"4cdd0e33-c2ea-4bc6-b627-89add2c5d09f","block_type":"box","text":"shares”). Investors who do not qualify for reduced initial sales charges and who expect to maintain their investment","page_number":138,"box":{"x":69,"y":475,"width":826,"height":12}},{"id":"044dded7-089d-45be-9afa-adba20a49cc5","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":138,"box":{"x":68,"y":491,"width":808,"height":11}},{"id":"1358740f-beba-4eb3-a897-b0b04d88f86a","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":138,"box":{"x":69,"y":506,"width":834,"height":11}},{"id":"9b9cfd33-cd05-4db7-88f6-3cdace1a060b","block_type":"box","text":"service fee. Although some investors who previously purchased Institutional Shares may no longer be eligible to","page_number":138,"box":{"x":69,"y":521,"width":798,"height":11}},{"id":"76daada5-e143-42b6-96b9-d5fdc1adf964","block_type":"box","text":"purchase Institutional Shares of other Funds, those previously purchased Institutional Shares, together with all","page_number":138,"box":{"x":70,"y":536,"width":789,"height":11}},{"id":"dec47da1-5b0c-4fcc-99ea-dbfc28d3dcbc","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":138,"box":{"x":70,"y":551,"width":805,"height":11}},{"id":"3878d453-c371-472f-8175-f2f222014910","block_type":"box","text":"investor for a reduced initial sales charge on new initial sales charge purchases. In addition, the ongoing CDSC","page_number":138,"box":{"x":70,"y":566,"width":792,"height":11}},{"id":"21c03fff-fa98-4c68-a672-7cc794e5e049","block_type":"box","text":"shares service and distribution fees will cause CDSC shares to have higher expense ratios, pay lower dividends and","page_number":138,"box":{"x":69,"y":581,"width":826,"height":12}},{"id":"59ac1305-3603-4251-a22d-ea144f5714fa","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":138,"box":{"x":69,"y":596,"width":802,"height":12}},{"id":"a7afe64e-9961-4caf-aae1-9140c9fff37d","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":138,"box":{"x":69,"y":612,"width":834,"height":11}},{"id":"eb41e3eb-4aab-450a-b9bc-50e1c76d883d","block_type":"box","text":"have a lower total return than Institutional Shares.","page_number":138,"box":{"x":69,"y":627,"width":358,"height":9}},{"id":"c53ada89-fe78-4ea7-8e8a-0f19b6ffeb91","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Part I of each Fund’s SAI for","page_number":138,"box":{"x":102,"y":649,"width":734,"height":12}},{"id":"aa655fc1-0b4e-4719-b3cd-a96e5fb23933","block_type":"box","text":"information about amounts paid to the Distributor in connection with Investor A and Investor A1 Shares for the","page_number":138,"box":{"x":70,"y":664,"width":785,"height":11}},{"id":"f8a69021-a654-4ace-8164-acebb2ec405f","block_type":"box","text":"periods indicated.","page_number":138,"box":{"x":70,"y":680,"width":124,"height":11}},{"id":"37047a05-8482-49af-abda-7da68aed5cdb","block_type":"box","text":"The Distributor may reallow discounts to selected securities dealers and other financial intermediaries and retain","page_number":138,"box":{"x":101,"y":702,"width":806,"height":11}},{"id":"435cc0a4-d02f-43d6-ac5a-67056be26352","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":138,"box":{"x":68,"y":718,"width":830,"height":11}},{"id":"35806828-273b-4aaa-bf83-8b35bb8d38f5","block_type":"box","text":"securities dealers and other financial intermediaries selling front-end load shares of a Fund will receive a concession","page_number":138,"box":{"x":69,"y":732,"width":832,"height":12}},{"id":"bc15f386-d45e-4441-9638-da2d245f53fa","block_type":"box","text":"equal to most of the sales charge, they may be deemed to be underwriters under the Securities Act.","page_number":138,"box":{"x":69,"y":748,"width":714,"height":11}},{"id":"9241a61e-6ad6-41c6-b3a5-e32b8791e1ef","block_type":"box","text":"Initial Sales Charge — Investor P Shares","page_number":138,"box":{"x":69,"y":778,"width":297,"height":11}},{"id":"41598787-74fc-45c6-ad91-e89a00519cf7","block_type":"box","text":"Certain Funds offer Investor P Shares as described in each such Fund’s Prospectus, Investor P Shares are","page_number":138,"box":{"x":102,"y":801,"width":761,"height":11}},{"id":"72abeff1-6f65-4133-a1d2-031c6873d034","block_type":"box","text":"available for purchase only through registered representatives of an insurance company’s broker-dealer that has","page_number":138,"box":{"x":69,"y":816,"width":800,"height":11}},{"id":"9c84c97f-6318-4d61-9a70-aad1a08f0c0d","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":138,"box":{"x":69,"y":831,"width":812,"height":11}},{"id":"b576718f-7e62-452d-8a11-1cb4dfbca238","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":138,"box":{"x":69,"y":846,"width":813,"height":11}},{"id":"1dd7d083-d545-41e8-9e33-7b5f85a04575","block_type":"box","text":"dividends and have a lower total return than Investor A Shares of the same Fund.","page_number":138,"box":{"x":69,"y":861,"width":578,"height":9}},{"id":"b4cf782b-b31c-4f0c-bb42-f6f9355e28a2","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Part I of each Fund’s SAI for","page_number":138,"box":{"x":102,"y":884,"width":734,"height":11}},{"id":"f320a1ba-47be-4a5f-8b92-67563d550e6d","block_type":"box","text":"information about amounts paid to the Distributor in connection with Investor P Shares for the periods indicated.","page_number":138,"box":{"x":70,"y":899,"width":800,"height":11}},{"id":"39f6c54a-e2d9-4ccf-8878-1efa1765f202","block_type":"box","text":"II-100","page_number":138,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"a8c02708-af14-4a01-befe-8d3d6285a437","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":138,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4d5f9f47-62c6-4446-999e-afecf971f06e","block_type":"box","text":"The Distributor may reallow discounts to selected securities dealers and other financial intermediaries and retain","page_number":139,"box":{"x":101,"y":45,"width":806,"height":11}},{"id":"80871d21-0572-4899-8c91-8ce7112730eb","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":139,"box":{"x":68,"y":60,"width":830,"height":11}},{"id":"c7dc13f5-6786-42d8-bfe5-62f3702251cd","block_type":"box","text":"securities dealers and other financial intermediaries selling front-end load shares of a Fund will receive a concession","page_number":139,"box":{"x":69,"y":75,"width":832,"height":11}},{"id":"b4794c5f-9427-46aa-9f2b-cb883067c1f6","block_type":"box","text":"equal to most of the sales charge, they may be deemed to be underwriters under the Securities Act.","page_number":139,"box":{"x":69,"y":90,"width":714,"height":11}},{"id":"1c156d58-d679-46ef-bf5d-f18cc6331f48","block_type":"box","text":"Reduced Initial Sales Charges","page_number":139,"box":{"x":69,"y":120,"width":219,"height":11}},{"id":"3264009e-8be1-4440-91fc-3131bb6bdfce","block_type":"box","text":"Certain investors may be eligible for a reduction in or waiver of a sales load due to the nature of the investors","page_number":139,"box":{"x":102,"y":143,"width":782,"height":11}},{"id":"4b4d78fa-061e-4474-9fd6-29178ceb8a3e","block_type":"box","text":"and/or the reduced sales efforts necessary to obtain their investments. Financial intermediaries may, in connection","page_number":139,"box":{"x":69,"y":158,"width":827,"height":11}},{"id":"256bcce0-b71b-47d8-b771-54fb810728ef","block_type":"box","text":"with a change in account type or otherwise in accordance with a financial intermediary’s policies and procedures,","page_number":139,"box":{"x":68,"y":173,"width":809,"height":11}},{"id":"ef380a0d-928a-43dc-bb03-36d7c08ac4d1","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":139,"box":{"x":69,"y":188,"width":823,"height":12}},{"id":"b9c90b80-1e8c-4a31-8cea-635fd50cd4e3","block_type":"box","text":"exchanged shares are not subject to a contingent deferred sales charge and that shareholders meet the eligibility","page_number":139,"box":{"x":69,"y":203,"width":812,"height":12}},{"id":"a7344361-5076-467f-a0c1-ae4cee35ff6d","block_type":"box","text":"requirements of the new share class. Certain sales load reductions and waivers may be available to customers of","page_number":139,"box":{"x":69,"y":218,"width":813,"height":12}},{"id":"f1deae3d-55ef-4fb6-84d7-dde8b3addf6e","block_type":"box","text":"certain financial intermediaries, as described under “Intermediary-Defined Sales Charge Waiver Policies” in the","page_number":139,"box":{"x":69,"y":234,"width":793,"height":11}},{"id":"ee930da2-dbd3-462b-b7cd-08af0d879df6","block_type":"box","text":"Fund’s Prospectus. Please speak to your financial intermediary for more information.","page_number":139,"box":{"x":70,"y":249,"width":603,"height":11}},{"id":"33c922fb-8d78-45fd-a14a-02ec3bdea8b0","block_type":"box","text":"Reinvested Dividends.","page_number":139,"box":{"x":102,"y":272,"width":156,"height":8}},{"id":"10ee132b-c5e7-421c-a0ca-8e3a47369371","block_type":"box","text":"No sales charges are imposed upon shares issued as a result of the automatic","page_number":139,"box":{"x":265,"y":271,"width":566,"height":12}},{"id":"5459c9cd-84a2-4791-a89d-e0618da87f2f","block_type":"box","text":"reinvestment of dividends.","page_number":139,"box":{"x":69,"y":286,"width":186,"height":10}},{"id":"79405320-540d-4ea8-a8b4-6a2c253a4cbd","block_type":"box","text":"Right of Accumulation.","page_number":139,"box":{"x":102,"y":309,"width":158,"height":11}},{"id":"b31bef01-1d30-4232-9fca-a231d7b97fe9","block_type":"box","text":"Investors have a “right of accumulation” under which any of the following may be","page_number":139,"box":{"x":267,"y":309,"width":574,"height":11}},{"id":"8763c340-583a-479e-8884-e9fdca3af258","block_type":"box","text":"combined with the amount of the current purchase in determining whether an investor qualifies for a breakpoint and","page_number":139,"box":{"x":69,"y":324,"width":826,"height":12}},{"id":"bff59220-8e17-4663-bf0a-d2614501f850","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":139,"box":{"x":69,"y":339,"width":810,"height":12}},{"id":"08e2ba48-e510-4ecf-8e18-07a53a4405c8","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":139,"box":{"x":70,"y":355,"width":825,"height":11}},{"id":"3ac1477f-f879-470b-a111-45b9375bf188","block_type":"box","text":"existing shares of certain unlisted closed-end management investment companies sponsored and advised by","page_number":139,"box":{"x":69,"y":370,"width":780,"height":11}},{"id":"5450bf01-7e3e-4239-8cce-e61ee46f7850","block_type":"box","text":"BlackRock or its affiliates (“Eligible Unlisted BlackRock Closed-End Funds”) and (iii) the investment in the BlackRock","page_number":139,"box":{"x":70,"y":385,"width":828,"height":11}},{"id":"61b484c8-3cb4-419f-8c3f-1a491de67b9e","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":139,"box":{"x":69,"y":400,"width":804,"height":11}},{"id":"5822c383-a6cb-40d9-b3c2-70aaf342be80","block_type":"box","text":"intermediaries may value current holdings of their customers differently for purposes of determining whether an","page_number":139,"box":{"x":70,"y":415,"width":794,"height":11}},{"id":"f1b7ecb1-56eb-48c0-9b80-f124e22bf1e6","block_type":"box","text":"investor qualifies for a breakpoint and a reduced front-end sales charge, although customers of the same financial","page_number":139,"box":{"x":70,"y":430,"width":814,"height":11}},{"id":"b6bed467-b9e8-4861-8cc8-697258ac661d","block_type":"box","text":"intermediary will be treated similarly. In order to use this right, the investor must alert BlackRock to the existence of","page_number":139,"box":{"x":70,"y":445,"width":828,"height":12}},{"id":"40e847d3-bf5a-4196-8dd5-ba8706ed5064","block_type":"box","text":"any previously purchased shares. Certain funds employ a “passive” management approach and attempt to match the","page_number":139,"box":{"x":69,"y":460,"width":838,"height":12}},{"id":"7eeffabc-c609-4530-83d0-fd47492d122a","block_type":"box","text":"performance of a target index as closely as possible before the deduction of Fund expenses (“Index Funds”).","page_number":139,"box":{"x":70,"y":475,"width":776,"height":12}},{"id":"cfcaedaf-aad4-418b-add2-c04ff4ab7674","block_type":"box","text":"Although Investor A Shares of Index Funds and BlackRock Short Obligations Fund generally are not subject to a sales","page_number":139,"box":{"x":68,"y":491,"width":835,"height":11}},{"id":"a99158d6-c60a-49bc-961c-f414706406da","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":139,"box":{"x":69,"y":506,"width":839,"height":11}},{"id":"3e008a64-84dd-402f-9658-4f47374a600b","block_type":"box","text":"in the Index Funds and BlackRock Short Obligations Fund may be combined with the amount of an investor’s current","page_number":139,"box":{"x":70,"y":521,"width":829,"height":11}},{"id":"dbe439c7-557c-4734-b4de-fa758151382d","block_type":"box","text":"purchase in determining whether an investor qualifies for a breakpoint and a reduced front-end sales charge.","page_number":139,"box":{"x":70,"y":536,"width":774,"height":11}},{"id":"a65790ec-2f64-4db4-af28-fb9f877a21c1","block_type":"box","text":"Letter of Intent.","page_number":139,"box":{"x":102,"y":559,"width":109,"height":9}},{"id":"1fb25f63-688e-454d-a6bf-2dcc1036e2f5","block_type":"box","text":"An investor may qualify for a reduced front-end sales charge immediately by signing a “Letter of","page_number":139,"box":{"x":217,"y":559,"width":681,"height":11}},{"id":"bd7654dd-bb09-403b-ad31-862898e73e08","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":139,"box":{"x":70,"y":574,"width":820,"height":11}},{"id":"9fd8b309-e87e-4681-96aa-d37be15bad40","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":139,"box":{"x":68,"y":589,"width":792,"height":11}},{"id":"bb8f05ee-1637-41ef-91fd-39231070b61c","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":139,"box":{"x":70,"y":604,"width":802,"height":11}},{"id":"6ecb8103-793e-4937-b7cf-a6c0abf5a2bd","block_type":"box","text":"more Eligible Unlisted BlackRock Closed-End Funds and/or (iii) make an investment through the BlackRock","page_number":139,"box":{"x":69,"y":619,"width":760,"height":11}},{"id":"8d224c85-9d4c-4219-a5ad-f30e8a49016e","block_type":"box","text":"CollegeAdvantage 529 Program in one or more BlackRock Funds. The initial investment must meet the minimum","page_number":139,"box":{"x":69,"y":634,"width":800,"height":12}},{"id":"d8f1299e-c6df-470f-a855-e07982b13eaa","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":139,"box":{"x":70,"y":649,"width":826,"height":12}},{"id":"0b824c08-d493-4b50-a367-21bb27adb25a","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":139,"box":{"x":69,"y":664,"width":822,"height":12}},{"id":"70859548-1fe0-485c-bfd7-61003c379fd0","block_type":"box","text":"Investor P, Institutional, Class K and Premier Shares, Eligible Unlisted BlackRock Closed-End Funds and the","page_number":139,"box":{"x":70,"y":680,"width":764,"height":11}},{"id":"861b3384-074e-4f79-a576-be0f892e81f5","block_type":"box","text":"BlackRock CollegeAdvantage 529 Program Class A and Class C Units) as of the date of commencement that are","page_number":139,"box":{"x":70,"y":695,"width":800,"height":11}},{"id":"8fee245c-1ade-4f4b-abe3-7096db72a7e9","block_type":"box","text":"eligible under the Right of Accumulation may be counted towards the sales charge reduction. The investor must notify","page_number":139,"box":{"x":69,"y":710,"width":838,"height":11}},{"id":"69f74d2f-0b1d-4cbc-bec6-57871faa0f92","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":139,"box":{"x":68,"y":725,"width":835,"height":11}},{"id":"a3aa31c7-f3cb-4589-bbaf-6a5f98e0528f","block_type":"box","text":"BlackRock CollegeAdvantage 529 Program that should be counted towards the sales charge reduction and (ii) any","page_number":139,"box":{"x":70,"y":740,"width":811,"height":11}},{"id":"a77094d9-382e-4201-bd29-6b8f38c320bd","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":139,"box":{"x":69,"y":755,"width":814,"height":11}},{"id":"8084bc46-e18d-4629-910f-c9f1f2510558","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":139,"box":{"x":68,"y":770,"width":827,"height":12}},{"id":"59465d1e-5129-4913-a126-db140fd4d971","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":139,"box":{"x":69,"y":785,"width":827,"height":12}},{"id":"fbe945ff-8b26-449f-a31e-407787a58234","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":139,"box":{"x":69,"y":801,"width":817,"height":11}},{"id":"3ee3f58f-1582-41ed-806a-69e9f71131b7","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":139,"box":{"x":70,"y":816,"width":807,"height":11}},{"id":"84decbd0-b990-4898-ae52-91a957b3f351","block_type":"box","text":"Shares, as applicable, held in escrow to pay the difference.","page_number":139,"box":{"x":69,"y":831,"width":423,"height":11}},{"id":"3af3ffea-f8cb-465f-9ce4-3b13b9aa0d96","block_type":"box","text":"Placement Fees.","page_number":139,"box":{"x":102,"y":854,"width":116,"height":8}},{"id":"c58c28d3-b597-464e-88e9-af7e8e3a6fc2","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":139,"box":{"x":102,"y":876,"width":777,"height":11}},{"id":"c96d2040-8d81-4e5b-9394-fd255ac0ba24","block_type":"box","text":"which may depend on the policies, procedures and trading platforms of your financial intermediary.","page_number":139,"box":{"x":68,"y":891,"width":704,"height":12}},{"id":"102345db-8c02-443c-9231-e43346af2bcb","block_type":"box","text":"II-101","page_number":139,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"27b0fd1c-7373-4b09-80d6-b5922f701934","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":139,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"947afbc3-1f36-489d-8757-741c86a5f8b0","block_type":"box","text":"Except as noted below, these placement fees may be up to the following amounts for Investor A Shares:","page_number":140,"box":{"x":102,"y":45,"width":741,"height":11}},{"id":"bb8a76e0-767a-4254-9bf6-d97baf496b9f","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":72,"width":361,"height":10}},{"id":"6ac73c29-1fcb-4763-b89e-b8646c38ccc7","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":140,"box":{"x":535,"y":72,"width":288,"height":9}},{"id":"def0bed5-d92a-4b1a-90f8-dc1bc3d5854e","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":87,"width":361,"height":10}},{"id":"d17e90bd-5610-4899-895c-19123eb280c4","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":140,"box":{"x":535,"y":88,"width":288,"height":8}},{"id":"7c198356-dcf0-4d44-b6be-58649eb54af2","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":102,"width":345,"height":10}},{"id":"194aab59-d70b-450d-b2d7-4a96ba959248","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":140,"box":{"x":518,"y":103,"width":305,"height":9}},{"id":"d61429ff-38eb-4c01-8fee-d7e1a59ed013","block_type":"box","text":"With respect to Investor A Shares of BlackRock Global Allocation Fund, Inc., BlackRock Dynamic High Income","page_number":140,"box":{"x":101,"y":126,"width":776,"height":12}},{"id":"f12fa6d8-d83d-4381-88c2-9602f420fa65","block_type":"box","text":"Portfolio (for shares purchased prior to July 1, 2020) and BlackRock Multi-Asset Income Portfolio (for shares","page_number":140,"box":{"x":69,"y":142,"width":774,"height":11}},{"id":"d6efbd76-05f7-414b-9ad6-b5cbedc714d0","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":140,"box":{"x":70,"y":157,"width":824,"height":11}},{"id":"5713ecfe-ae36-4881-a3f1-4e36e5a2748a","block_type":"box","text":"and BlackRock Event Driven Equity Fund, the placement fees may be up to the following amounts:","page_number":140,"box":{"x":69,"y":172,"width":695,"height":11}},{"id":"63556432-c7cb-431c-bfdb-62a97bf929a2","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":199,"width":410,"height":11}},{"id":"81694972-6c74-4c01-9fd9-24a5849a86d1","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":140,"box":{"x":583,"y":200,"width":240,"height":9}},{"id":"4cfd885c-7d20-4836-ab09-4ce6182b7315","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":214,"width":361,"height":11}},{"id":"bdfba988-b461-450b-b701-3f830a898b05","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":140,"box":{"x":535,"y":215,"width":288,"height":9}},{"id":"1bc3eead-e493-4b85-82b7-e18cecb8d355","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":229,"width":345,"height":11}},{"id":"d397b676-fd98-4aea-96b3-8598bfe74ce4","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":140,"box":{"x":518,"y":230,"width":305,"height":9}},{"id":"36675d74-0b81-4155-823f-700def48da01","block_type":"box","text":"With respect to Investor A Shares of BlackRock Systematic Multi-Strategy Fund of BlackRock Funds IV, BlackRock","page_number":140,"box":{"x":101,"y":254,"width":806,"height":11}},{"id":"a0f41421-d736-4388-96bc-a5ba94792371","block_type":"box","text":"Advantage CoreAlpha Bond Fund of BlackRock Funds VI, BlackRock Tactical Opportunities Fund of BlackRock Funds","page_number":140,"box":{"x":68,"y":269,"width":821,"height":11}},{"id":"550d9dc5-afa5-468d-b844-d12f3917da5d","block_type":"box","text":"SM","page_number":140,"box":{"x":890,"y":269,"width":11,"height":5}},{"id":"341e23ba-3511-4469-8a4d-d44fed2686ee","block_type":"box","text":",","page_number":140,"box":{"x":903,"y":276,"width":2,"height":3}},{"id":"553f4a1e-dd4c-4e5b-b899-0a30603046b2","block_type":"box","text":"BlackRock High Yield Portfolio, BlackRock Core Bond Portfolio and BlackRock Sustainable High Yield Bond Fund of","page_number":140,"box":{"x":70,"y":284,"width":816,"height":11}},{"id":"adc6aa2a-ea3f-439b-abd5-3e9588f69ecb","block_type":"box","text":"BlackRock Funds V, BlackRock Securitized Income Fund of Managed Account Series II and BlackRock Strategic Global","page_number":140,"box":{"x":70,"y":299,"width":835,"height":11}},{"id":"7f93620b-72b2-4f4b-ae7b-5c1f282b79f4","block_type":"box","text":"Bond Fund, Inc., the placement fees may be up to the following amounts:","page_number":140,"box":{"x":70,"y":314,"width":520,"height":12}},{"id":"96dc02f3-f003-4d96-91b1-50485de5449b","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":341,"width":361,"height":11}},{"id":"e0b98356-4232-471b-9428-795f01ae1f44","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":140,"box":{"x":535,"y":342,"width":288,"height":9}},{"id":"2ee612a2-95dc-4080-b1fe-5356c99a2943","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":356,"width":361,"height":11}},{"id":"e6771d46-b4b7-4be6-8256-104db9cb6f07","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":140,"box":{"x":535,"y":357,"width":288,"height":9}},{"id":"8eb2b1fc-e13c-4833-b92e-103f6b3ecbf8","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":372,"width":345,"height":10}},{"id":"9f4956e9-48a6-438f-a295-395eaae2adc3","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":140,"box":{"x":518,"y":372,"width":305,"height":9}},{"id":"d8b638a3-ab64-4a02-ad72-a748fe6ab779","block_type":"box","text":"With respect to Investor A Shares of BlackRock Mortgage-Backed Securities Fund and BlackRock Impact","page_number":140,"box":{"x":101,"y":396,"width":743,"height":11}},{"id":"c089c2ad-09f7-4555-924a-f064cb2cdee9","block_type":"box","text":"Mortgage Fund of BlackRock Funds V, the placement fees may be up to the following amounts:","page_number":140,"box":{"x":70,"y":411,"width":674,"height":12}},{"id":"6a908970-1350-4c9f-a656-9638adff517f","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":438,"width":361,"height":11}},{"id":"f190c51b-2f2e-4ab3-b64f-d651c9674a6b","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":140,"box":{"x":535,"y":439,"width":288,"height":9}},{"id":"7ee7344a-75e5-412b-a8c6-e8ac1200a0d8","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":453,"width":361,"height":11}},{"id":"ca2fdda3-20b4-4885-99d4-25d97caf8f50","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":140,"box":{"x":535,"y":454,"width":288,"height":9}},{"id":"e003b35a-2684-445b-84c3-391aa12e3dae","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":469,"width":345,"height":10}},{"id":"02251b42-8b11-4c49-b7b4-75fe4904c0a2","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":140,"box":{"x":518,"y":469,"width":305,"height":9}},{"id":"dc2ea922-3d9c-4a21-84ab-298f148204a8","block_type":"box","text":"With respect to Investor A Shares of BlackRock Managed Income Fund of BlackRock Funds II, the placement fees","page_number":140,"box":{"x":101,"y":493,"width":808,"height":11}},{"id":"6da61db6-bb6d-4c06-ac59-c157ba08ade8","block_type":"box","text":"may be up to the following amounts:","page_number":140,"box":{"x":69,"y":508,"width":257,"height":12}},{"id":"ed3a91bd-aa46-4e45-bfb2-077253e41758","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":535,"width":410,"height":11}},{"id":"6ddcba72-cc13-40ec-8b93-524cd8fd1f7e","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":140,"box":{"x":583,"y":536,"width":240,"height":9}},{"id":"b4eae912-eb9b-484a-81ba-bf3a847ce1fb","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":550,"width":361,"height":11}},{"id":"be9a24e6-2a6f-4f7a-bd63-07946f3d6732","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":140,"box":{"x":535,"y":551,"width":288,"height":9}},{"id":"c96f87a4-5b49-4b8f-a0cb-5b99112c4460","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":566,"width":345,"height":10}},{"id":"f0ac6a54-2158-4553-8a91-dc17df2bca3b","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":140,"box":{"x":518,"y":566,"width":305,"height":9}},{"id":"57dca6ea-1a63-4223-bea2-0cfe51617331","block_type":"box","text":"With respect to Investor A Shares of BlackRock Inflation Protected Bond Portfolio of BlackRock Funds V, the","page_number":140,"box":{"x":101,"y":590,"width":768,"height":11}},{"id":"850cd802-3d75-4d15-917f-30e38950c697","block_type":"box","text":"placement fees may be up to the following amounts:","page_number":140,"box":{"x":70,"y":605,"width":371,"height":12}},{"id":"c8be98ef-42cf-4538-aa0b-dc25785835b1","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":632,"width":361,"height":11}},{"id":"aaef7eb4-7e96-4da1-bc66-c87219378df6","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":140,"box":{"x":535,"y":633,"width":288,"height":9}},{"id":"3d6121c1-a2a7-46fa-a76d-27e8dd80ad40","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":647,"width":361,"height":11}},{"id":"a9188511-574f-41a3-9cc2-c39dc6e10988","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.10%","page_number":140,"box":{"x":535,"y":648,"width":288,"height":9}},{"id":"436918a9-5000-4e37-832e-51839ef54a58","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":663,"width":345,"height":10}},{"id":"2989897b-4343-45d3-8b6e-c9e322b60090","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.05%","page_number":140,"box":{"x":518,"y":663,"width":305,"height":9}},{"id":"94a514ef-67a6-41f7-952a-142364b2a221","block_type":"box","text":"With respect to Investor A Shares of BlackRock Low Duration Bond Portfolio, BlackRock Floating Rate Income","page_number":140,"box":{"x":101,"y":687,"width":778,"height":11}},{"id":"f2dd6ed2-9ecd-47be-ae80-1df32e6028f5","block_type":"box","text":"Portfolio, BlackRock Income Fund and BlackRock Strategic Income Opportunities Portfolio of BlackRock Funds V, the","page_number":140,"box":{"x":69,"y":702,"width":830,"height":12}},{"id":"867ce6a5-1b44-4129-8bd4-c94963fd6d06","block_type":"box","text":"placement fees may be up to the following amounts:","page_number":140,"box":{"x":70,"y":717,"width":371,"height":12}},{"id":"e19c8f6e-ba5b-43d0-a689-9bdce0ca058c","block_type":"box","text":"$500,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":744,"width":410,"height":12}},{"id":"5c5b7186-b6bc-4f17-8685-912df8105d8f","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":140,"box":{"x":583,"y":745,"width":240,"height":9}},{"id":"afc4810c-7b67-4f0c-a166-0887f5cfec61","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":760,"width":361,"height":10}},{"id":"94bfe565-7f0d-4f5e-8034-43eb0c581400","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":140,"box":{"x":535,"y":760,"width":288,"height":9}},{"id":"d613a1ef-8cc6-42f9-8489-2e6392c77587","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":140,"box":{"x":167,"y":775,"width":345,"height":10}},{"id":"63d66d54-0507-4767-98a9-9971b526e895","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":140,"box":{"x":518,"y":775,"width":305,"height":9}},{"id":"4e0ca1bd-d835-4051-9b37-5225069c452f","block_type":"box","text":"With respect to Investor A Shares of BlackRock Short Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":140,"box":{"x":101,"y":799,"width":779,"height":11}},{"id":"749f8384-a20d-4898-acf3-e9b109bc9110","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":140,"box":{"x":70,"y":814,"width":780,"height":12}},{"id":"8524d2ef-2bde-42d2-82d9-e45dfd9c2b27","block_type":"box","text":"$250,000 and above . . . .","page_number":140,"box":{"x":167,"y":841,"width":182,"height":12}},{"id":"b7363b64-f460-4fca-8c4b-b0e06e037b3a","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":140,"box":{"x":355,"y":842,"width":468,"height":9}},{"id":"c79c44a9-fcb9-4e9a-b0b7-2ee6f90f4db7","block_type":"box","text":"II-102","page_number":140,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"ea4a625c-f26e-485a-85cb-28f87b9b8e5c","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":140,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"286f27a1-2e89-429b-8eff-c43c3724d267","block_type":"box","text":"With respect to Investor A Shares of BlackRock Short Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":141,"box":{"x":101,"y":45,"width":779,"height":11}},{"id":"47c8358e-795d-421b-bad6-d6a6025bd1f5","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":141,"box":{"x":70,"y":60,"width":819,"height":11}},{"id":"ddd13385-58fa-4b87-a0bc-100f7c1a3f82","block_type":"box","text":"the following amounts:","page_number":141,"box":{"x":68,"y":75,"width":161,"height":11}},{"id":"85051d44-bf81-44b5-bf27-d9b7fa8a3177","block_type":"box","text":"$100,000 and above . . . .","page_number":141,"box":{"x":167,"y":102,"width":182,"height":11}},{"id":"ac5ead3e-9508-40b3-9ebc-0d5287304862","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":141,"box":{"x":355,"y":103,"width":468,"height":9}},{"id":"da510d99-931c-4547-912c-1edafae74bdd","block_type":"box","text":"With respect to Investor A Shares of BlackRock Short Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":141,"box":{"x":101,"y":126,"width":779,"height":11}},{"id":"824b5114-7a4c-4a70-8775-c045f8dd1091","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":141,"box":{"x":70,"y":142,"width":775,"height":11}},{"id":"d3c3b09e-09d8-4299-8924-ce6613f833e6","block_type":"box","text":"$250,000 and above . . . .","page_number":141,"box":{"x":167,"y":169,"width":182,"height":11}},{"id":"6be282db-cda8-46f4-aa8b-73a6acd7605d","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":141,"box":{"x":355,"y":169,"width":468,"height":9}},{"id":"e9c41e85-4254-4aa2-ac99-e821553273ee","block_type":"box","text":"With respect to Investor A Shares of BlackRock Strategic Municipal Opportunities Fund of BlackRock Municipal","page_number":141,"box":{"x":101,"y":193,"width":788,"height":12}},{"id":"f082a360-e789-404b-8d94-ee79eff2abaf","block_type":"box","text":"Series Trust, BlackRock California Municipal Opportunities Fund of BlackRock California Municipal Series Trust,","page_number":141,"box":{"x":69,"y":208,"width":792,"height":11}},{"id":"96b916db-426e-4dc7-b8c2-9458f0ebceab","block_type":"box","text":"BlackRock New York Municipal Opportunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock","page_number":141,"box":{"x":70,"y":224,"width":787,"height":11}},{"id":"9ac7d79e-82a7-4498-abfa-450f0dd95467","block_type":"box","text":"Pennsylvania Municipal Bond Fund of BlackRock Multi-State Municipal Series Trust and BlackRock National Municipal","page_number":141,"box":{"x":69,"y":239,"width":834,"height":11}},{"id":"7d04ce4b-d2b3-47da-8b11-683b9a90351b","block_type":"box","text":"Fund of BlackRock Municipal Bond Fund, Inc., the placement fees may be up to the following amounts:","page_number":141,"box":{"x":70,"y":254,"width":729,"height":11}},{"id":"cbde643b-b366-4682-9ee9-f58fe8aae396","block_type":"box","text":"$250,000 but less than $4 million . . . . . . . . . . . . . . . . . . . .","page_number":141,"box":{"x":167,"y":281,"width":410,"height":11}},{"id":"d7044612-9c1b-4744-b5c9-d699d8957a88","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":141,"box":{"x":583,"y":282,"width":240,"height":8}},{"id":"285b9932-95e2-4907-acd9-719f8814392b","block_type":"box","text":"$4 million but less than $10 million . . . . . . . . . . . . .","page_number":141,"box":{"x":167,"y":296,"width":361,"height":10}},{"id":"e9974c0b-e987-418b-875e-63f11dc62977","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":141,"box":{"x":535,"y":297,"width":288,"height":9}},{"id":"8e4c950a-1e39-4379-822c-7292d281a580","block_type":"box","text":"$10 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":141,"box":{"x":167,"y":311,"width":345,"height":11}},{"id":"46b93fb1-58c7-438b-baa4-b62e12745bb8","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":141,"box":{"x":518,"y":312,"width":305,"height":9}},{"id":"50eb1ae1-4a54-437b-8f48-638a3fb6dde5","block_type":"box","text":"With respect to Investor A Shares of BlackRock Dynamic High Income Portfolio (for shares purchased on or after","page_number":141,"box":{"x":101,"y":336,"width":801,"height":11}},{"id":"fbd3faa3-68a4-49d4-be46-1c9451600238","block_type":"box","text":"July 1, 2020) and BlackRock Multi-Asset Income Portfolio (for shares purchased on or after July 1, 2020) of","page_number":141,"box":{"x":69,"y":351,"width":769,"height":11}},{"id":"8790ccb1-fe81-4791-a767-f250cf159620","block_type":"box","text":"BlackRock Funds II, BlackRock Total Return Fund of BlackRock Bond Fund, Inc. and BlackRock Balanced Fund, Inc.,","page_number":141,"box":{"x":70,"y":366,"width":818,"height":10}},{"id":"4551935c-0604-4d87-bdc0-111f417e0923","block_type":"box","text":"the placement fees may be up to the following amounts:","page_number":141,"box":{"x":68,"y":381,"width":401,"height":11}},{"id":"4cd810ec-94d2-472f-b66f-d50a396e0dc2","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":141,"box":{"x":167,"y":408,"width":410,"height":11}},{"id":"6d92f5a5-0dcd-4df3-96c1-333a8cf8dbd0","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":141,"box":{"x":583,"y":409,"width":240,"height":9}},{"id":"8b107c42-da75-4187-ba03-4c4d9be2791f","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":141,"box":{"x":167,"y":423,"width":361,"height":11}},{"id":"df15c5c2-2691-470d-97ad-c92d50b7bb13","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":141,"box":{"x":535,"y":424,"width":288,"height":9}},{"id":"51f6484a-c147-4d70-9155-c45f18b7ef41","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":141,"box":{"x":167,"y":438,"width":345,"height":11}},{"id":"9a03e9f5-cfa0-40a7-9347-37783353fea1","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":141,"box":{"x":518,"y":439,"width":305,"height":9}},{"id":"70fd852c-f882-4e35-bbd7-3abde4c2e8d5","block_type":"box","text":"With respect to Investor P Shares of BlackRock LifePath","page_number":141,"box":{"x":101,"y":463,"width":398,"height":11}},{"id":"15ae3120-51e3-49e4-9179-b225fd8b5c8b","block_type":"box","text":"®","page_number":141,"box":{"x":500,"y":463,"width":6,"height":5}},{"id":"046d9d23-1587-4cff-bfca-ba4383b0adf5","block_type":"box","text":"Index 2030 Fund, BlackRock LifePath","page_number":141,"box":{"x":513,"y":463,"width":264,"height":10}},{"id":"e95879a0-1edf-4963-a9c7-0896e816aade","block_type":"box","text":"®","page_number":141,"box":{"x":778,"y":463,"width":6,"height":5}},{"id":"f3f32ec9-f500-446e-b0cb-1b5cd6dfd3c7","block_type":"box","text":"Index 2035","page_number":141,"box":{"x":791,"y":463,"width":79,"height":9}},{"id":"41a8c7be-a211-4229-9e83-02df695ef27f","block_type":"box","text":"Fund, BlackRock LifePath","page_number":141,"box":{"x":70,"y":478,"width":177,"height":11}},{"id":"81b2bc14-6fb9-483f-a981-92aa36d47639","block_type":"box","text":"®","page_number":141,"box":{"x":249,"y":478,"width":6,"height":5}},{"id":"111a45f8-72a2-4af8-8689-cf4c1a8c112b","block_type":"box","text":"Index 2040 Fund, BlackRock LifePath","page_number":141,"box":{"x":261,"y":478,"width":265,"height":11}},{"id":"6f1b01ee-7828-4c3b-a68e-21954ed34de0","block_type":"box","text":"®","page_number":141,"box":{"x":527,"y":478,"width":6,"height":5}},{"id":"dac3dd26-67be-4ddc-964f-d81fdf8a863d","block_type":"box","text":"Index 2045 Fund, BlackRock LifePath","page_number":141,"box":{"x":539,"y":478,"width":265,"height":11}},{"id":"b32eb53e-594b-4ee9-b4d0-cf6194d5742b","block_type":"box","text":"®","page_number":141,"box":{"x":805,"y":478,"width":6,"height":5}},{"id":"76d05032-bc28-4ef1-86fe-61fe22bf23db","block_type":"box","text":"Index 2050","page_number":141,"box":{"x":817,"y":478,"width":80,"height":9}},{"id":"1d2bf72e-b71c-4997-8d59-f2943ad124b3","block_type":"box","text":"Fund, BlackRock LifePath","page_number":141,"box":{"x":70,"y":493,"width":177,"height":11}},{"id":"3d71c528-fec6-4076-8ff1-74bcf21aed4b","block_type":"box","text":"®","page_number":141,"box":{"x":248,"y":494,"width":6,"height":4}},{"id":"56986c65-267f-487b-b849-07ac2672650b","block_type":"box","text":"Index 2055 Fund, BlackRock LifePath","page_number":141,"box":{"x":261,"y":493,"width":263,"height":11}},{"id":"64137170-bb7d-4a13-9524-dcad3ce0f61f","block_type":"box","text":"®","page_number":141,"box":{"x":526,"y":494,"width":6,"height":4}},{"id":"1a221be3-b84c-4f8e-96f8-18eb1e735f35","block_type":"box","text":"Index 2060 Fund, BlackRock LifePath","page_number":141,"box":{"x":538,"y":493,"width":264,"height":11}},{"id":"da8d9b98-1fad-452a-acfd-af4e46b6302f","block_type":"box","text":"®","page_number":141,"box":{"x":803,"y":494,"width":6,"height":4}},{"id":"6b2f651f-c919-4332-ab5c-e0f621284577","block_type":"box","text":"Index 2065","page_number":141,"box":{"x":815,"y":493,"width":80,"height":9}},{"id":"44e56d4a-88c8-4887-839e-dab3d6194b82","block_type":"box","text":"Fund, BlackRock LifePath","page_number":141,"box":{"x":70,"y":508,"width":177,"height":11}},{"id":"999cd56c-f96a-45bf-9eaf-96c62236504b","block_type":"box","text":"®","page_number":141,"box":{"x":248,"y":509,"width":6,"height":4}},{"id":"a7fde68f-3550-4787-a7dd-2b16a2d776e9","block_type":"box","text":"Index 2070 Fund and BlackRock LifePath","page_number":141,"box":{"x":261,"y":508,"width":290,"height":9}},{"id":"b3440c97-6377-4d7b-bdfc-7d77e0d96195","block_type":"box","text":"®","page_number":141,"box":{"x":552,"y":509,"width":6,"height":4}},{"id":"183dec08-8dd2-4b31-81eb-5d53a9245523","block_type":"box","text":"Index Retirement Fund of BlackRock Funds III,","page_number":141,"box":{"x":564,"y":508,"width":324,"height":11}},{"id":"35d84607-fe2e-491d-92e0-f3d43d97204e","block_type":"box","text":"the placement fees may be up to the following amounts:","page_number":141,"box":{"x":68,"y":523,"width":401,"height":12}},{"id":"e59f75e6-8bf8-4250-8c45-bdc7c3b46e59","block_type":"box","text":"$1,000,000 and above . . . . .","page_number":141,"box":{"x":167,"y":550,"width":206,"height":12}},{"id":"432e361a-beca-421f-a02e-d33e97749ca7","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.10%","page_number":141,"box":{"x":380,"y":551,"width":443,"height":9}},{"id":"51b30d17-4af3-4b91-bf39-eb2a541be69f","block_type":"box","text":"With respect to Investor P Shares of iShares Municipal Bond Index Fund of BlackRock Funds","page_number":141,"box":{"x":101,"y":575,"width":657,"height":11}},{"id":"cff75700-34f6-4059-8695-7d0556c8fda9","block_type":"box","text":"SM","page_number":141,"box":{"x":760,"y":575,"width":10,"height":5}},{"id":"6ae06b29-9737-4764-9fc3-03c6d0562483","block_type":"box","text":", the placement","page_number":141,"box":{"x":773,"y":575,"width":110,"height":11}},{"id":"703874ab-a9bb-4741-921f-d40950706146","block_type":"box","text":"fees may be up to the following amounts:","page_number":141,"box":{"x":68,"y":590,"width":294,"height":11}},{"id":"03102980-efe2-4bba-9855-5a36993f1c69","block_type":"box","text":"$1,000,000 and above . . . . .","page_number":141,"box":{"x":167,"y":617,"width":206,"height":11}},{"id":"748bf74b-59bc-408d-9e4b-6011d1ba96ca","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":141,"box":{"x":380,"y":618,"width":443,"height":9}},{"id":"95172bf8-5271-4099-8857-d837b4e0fbe1","block_type":"box","text":"There are no placement fees for Investor P Shares of iShares MSCI EAFE International Index Fund and iShares","page_number":141,"box":{"x":101,"y":642,"width":787,"height":11}},{"id":"9ee742bb-2eec-4cca-9ff2-d6a0732c7a9a","block_type":"box","text":"Russell 2000 Small-Cap Index Fund of BlackRock Index Funds, Inc. and iShares S&P 500 Index Fund and iShares","page_number":141,"box":{"x":70,"y":657,"width":808,"height":11}},{"id":"2d3ce91a-8794-46f1-8aac-b922bf7ce1a5","block_type":"box","text":"U.S. Aggregate Bond Index Fund of BlackRock Funds III.","page_number":141,"box":{"x":70,"y":672,"width":393,"height":11}},{"id":"32657e19-99ec-4b9b-84c6-9b8d4269c62a","block_type":"box","text":"For the tables above, the placement fees indicated will apply up to the indicated breakpoint (so that, for","page_number":141,"box":{"x":102,"y":695,"width":740,"height":11}},{"id":"d3b999a8-0892-4ef4-934c-25c4a7bf8c4a","block_type":"box","text":"example, a sale of $4 million worth of Investor A Shares of BlackRock Impact Mortgage Fund of BlackRock Funds V","page_number":141,"box":{"x":69,"y":709,"width":823,"height":12}},{"id":"05183847-812c-4186-b03a-f6f037900930","block_type":"box","text":"will result in a placement fee of up to 0.50% on the first $3 million and a placement fee of 0.25% on the final","page_number":141,"box":{"x":68,"y":724,"width":780,"height":12}},{"id":"8e688900-d307-4c95-9c25-635f7ac21e35","block_type":"box","text":"$1 million).","page_number":141,"box":{"x":69,"y":739,"width":79,"height":12}},{"id":"39f16653-4f0c-40f0-907a-b75a92208890","block_type":"box","text":"Other.","page_number":141,"box":{"x":102,"y":763,"width":41,"height":9}},{"id":"ffb631c0-291a-464c-81b1-f4a609174c53","block_type":"box","text":"The following persons may also buy Investor A or Investor P Shares without paying a sales charge:","page_number":141,"box":{"x":149,"y":763,"width":698,"height":11}},{"id":"eaacbad7-d52f-461f-a978-7fc890503cff","block_type":"box","text":"(a) certain employer-sponsored retirement plans (for purposes of this waiver, employer-sponsored retirement plans do","page_number":141,"box":{"x":69,"y":778,"width":839,"height":11}},{"id":"192d9199-e189-42e0-8748-99bd7f99e389","block_type":"box","text":"not include SEP IRAs, SIMPLE IRAs or SARSEPs); (b) rollovers of current investments through certain employer","page_number":141,"box":{"x":69,"y":793,"width":790,"height":11}},{"id":"046ffb5b-6f95-4904-a2ba-5adc29cada86","block_type":"box","text":"sponsored retirement plans provided the shares are transferred to Investor A or Investor P, as applicable, shares of","page_number":141,"box":{"x":69,"y":808,"width":825,"height":11}},{"id":"2893a07d-a58c-443c-a3e8-52756c3f67cc","block_type":"box","text":"the same or another BlackRock Fund as either a direct rollover, or subsequent to distribution, the rolled-over","page_number":141,"box":{"x":68,"y":823,"width":773,"height":11}},{"id":"24d4c201-d06e-4103-b9ab-45b4f50791f3","block_type":"box","text":"proceeds are contributed to a BlackRock IRA through an account directly with the Fund; or purchases by IRA programs","page_number":141,"box":{"x":70,"y":839,"width":838,"height":11}},{"id":"3baca776-2f94-461a-abb5-06ee14b76512","block_type":"box","text":"that are sponsored by financial intermediary firms provided the financial intermediary firm has entered into a Class A","page_number":141,"box":{"x":68,"y":853,"width":837,"height":12}},{"id":"e322495d-f710-4ceb-b431-4430efbaa81b","block_type":"box","text":"or Investor P NAV agreement, as applicable, with respect to such program with the Distributor; (c) insurance company","page_number":141,"box":{"x":69,"y":869,"width":836,"height":11}},{"id":"0859a335-cd36-4a80-8f21-3eaf44142530","block_type":"box","text":"separate accounts; (d) registered investment advisers, trust companies and bank trust departments exercising","page_number":141,"box":{"x":69,"y":884,"width":793,"height":11}},{"id":"c95e0cb2-0d88-44e1-949c-dbb96489b3b5","block_type":"box","text":"discretionary investment authority with respect to amounts to be invested in a Fund; (e) persons participating in a","page_number":141,"box":{"x":69,"y":899,"width":811,"height":11}},{"id":"2255223f-443d-493c-a3b2-574908e25ca2","block_type":"box","text":"II-103","page_number":141,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"d362de70-5493-4229-85a0-126ae33eaf8b","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":141,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ce272bf3-7098-4d2b-b2c1-94a40d487cc1","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":142,"box":{"x":68,"y":45,"width":827,"height":11}},{"id":"495dafd5-02b5-4605-807f-22e471145d44","block_type":"box","text":"institution; (f) financial intermediaries who have entered into an agreement with the Distributor and have been","page_number":142,"box":{"x":70,"y":60,"width":782,"height":11}},{"id":"430da1b6-5138-4258-b227-f8d32efb711c","block_type":"box","text":"approved by the Distributor to offer Fund shares to self-directed investment brokerage accounts that may or may not","page_number":142,"box":{"x":69,"y":75,"width":830,"height":11}},{"id":"5eec8b27-b39a-45d9-9f5e-888dd006c5b7","block_type":"box","text":"charge a transaction fee; (g) state sponsored 529 college savings plans and rollovers of such 529 plans into Roth","page_number":142,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"b496acad-07c5-494e-9921-aa561ef63c14","block_type":"box","text":"IRAs as permitted under the Internal Revenue Code; (h) with respect to Investor A Shares only, accounts opened","page_number":142,"box":{"x":70,"y":105,"width":799,"height":11}},{"id":"0f3418fd-a3c0-4c46-bc54-0861e5d4ccf3","block_type":"box","text":"directly with a Fund that do not have a financial intermediary associated with the account; and (i) persons","page_number":142,"box":{"x":69,"y":120,"width":752,"height":11}},{"id":"7548c74f-df7e-4a74-a825-345fa3d94af2","block_type":"box","text":"involuntarily liquidated from a Fund, who within 60 days of liquidation buy new shares of another BlackRock Fund (but","page_number":142,"box":{"x":70,"y":135,"width":836,"height":11}},{"id":"afa35f7c-312e-4e42-b84d-6e2cb492e2b6","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":142,"box":{"x":69,"y":150,"width":812,"height":12}},{"id":"66a32faa-5ccc-4e33-b927-a6ea71598e94","block_type":"box","text":"Sub-Advisers, Transfer Agent, Distributor, fund accounting agents, Barclays PLC and their affiliates may buy Investor A","page_number":142,"box":{"x":69,"y":166,"width":840,"height":11}},{"id":"27c72075-5dff-47be-92fd-505a2ee8d973","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":142,"box":{"x":69,"y":181,"width":788,"height":11}},{"id":"b641b090-bd00-43af-bb9c-f45bd7378f83","block_type":"box","text":"including: (a) officers, directors and partners; (b) employees and retirees; (c) employees or registered representatives","page_number":142,"box":{"x":70,"y":196,"width":838,"height":11}},{"id":"4d49d520-a63b-48a9-88bb-6ecc42ee6bbc","block_type":"box","text":"of firms who have entered into selling agreements to distribute shares of BlackRock-advised funds; (d) immediate","page_number":142,"box":{"x":69,"y":211,"width":810,"height":11}},{"id":"57403374-1155-49e6-9b22-a35d0c85c871","block_type":"box","text":"family members of such persons (“immediate family members” shall be defined as the investor, the investor’s","page_number":142,"box":{"x":68,"y":226,"width":787,"height":11}},{"id":"f53cf2ef-5955-4171-b03a-f94b6a78a098","block_type":"box","text":"spouse or domestic partner, children, parents and siblings); and (e) any trust, pension, profit-sharing or other benefit","page_number":142,"box":{"x":69,"y":241,"width":834,"height":11}},{"id":"7d5477b0-e534-4d85-84aa-64d1c2c26381","block_type":"box","text":"plan for any of the persons set forth in (a) through (d). Investors who qualify for any of these exemptions from the","page_number":142,"box":{"x":70,"y":256,"width":808,"height":12}},{"id":"20083302-bfa5-47d6-8752-0294fc9ff183","block_type":"box","text":"sales charge should purchase Investor A or Investor P Shares. In addition, a sales charge waiver may be available for","page_number":142,"box":{"x":69,"y":271,"width":837,"height":12}},{"id":"120c8a1a-5967-400c-b77c-e341bb53ad44","block_type":"box","text":"investors exchanging Investor A Shares of one BlackRock Fund for Investor P Shares of another BlackRock Fund, or","page_number":142,"box":{"x":70,"y":286,"width":820,"height":12}},{"id":"8e3e773b-1eea-458f-b774-92de8a2d94b0","block_type":"box","text":"exchanging Investor P Shares of one BlackRock Fund for Investor A Shares of another BlackRock Fund, through an","page_number":142,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"5488ac98-34f8-4c83-9c6e-3f9a0abe2e27","block_type":"box","text":"intermediary-processed exchange, provided that the investor had previously paid a sales charge with respect to such","page_number":142,"box":{"x":70,"y":317,"width":831,"height":11}},{"id":"38413f9d-9aa3-4e6b-bf0a-4df7e93a4d19","block_type":"box","text":"shares. The availability of Investor A or Investor P Shares sales charge waivers may depend upon the policies,","page_number":142,"box":{"x":69,"y":332,"width":783,"height":11}},{"id":"f555c5b5-841e-4104-a7fd-0d824fcfe686","block_type":"box","text":"procedures and trading platforms of your financial intermediary; consult your financial adviser.","page_number":142,"box":{"x":70,"y":347,"width":668,"height":11}},{"id":"b9d59281-a214-4189-ae2a-79b5f3cb1313","block_type":"box","text":"If you invest $1,000,000 ($250,000 for BlackRock Dynamic High Income Portfolio, BlackRock Multi-Asset","page_number":142,"box":{"x":102,"y":369,"width":754,"height":12}},{"id":"3c5d1ef8-c801-4cad-b586-008150c809f3","block_type":"box","text":"Income Portfolio and BlackRock Managed Income Fund of BlackRock Funds II, BlackRock Credit Relative Value Fund","page_number":142,"box":{"x":70,"y":385,"width":823,"height":11}},{"id":"d5ac06ac-af0e-491d-aa54-4e5a794c16f6","block_type":"box","text":"of BlackRock Funds IV, BlackRock Total Return Fund of BlackRock Bond Fund, Inc., BlackRock Global Allocation Fund,","page_number":142,"box":{"x":69,"y":400,"width":833,"height":10}},{"id":"2abb6f7e-fbfc-4689-b156-77cc0c4741b4","block_type":"box","text":"Inc., BlackRock National Municipal Fund of BlackRock Municipal Bond Fund, Inc., BlackRock Short Duration Muni","page_number":142,"box":{"x":70,"y":415,"width":802,"height":11}},{"id":"b294c17c-fa26-4e30-bf77-2c3d92b72962","block_type":"box","text":"Fund of BlackRock Municipal Bond Fund, Inc., BlackRock Strategic Municipal Opportunities Fund of BlackRock","page_number":142,"box":{"x":70,"y":430,"width":781,"height":11}},{"id":"57b15e3d-a01e-420b-9e06-c903d5f950d3","block_type":"box","text":"Municipal Series Trust, BlackRock California Municipal Opportunities Fund of BlackRock California Municipal Series","page_number":142,"box":{"x":70,"y":445,"width":819,"height":11}},{"id":"096f30fb-a8db-47b5-ae30-a5427d379077","block_type":"box","text":"Trust, BlackRock New York Municipal Opportunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock","page_number":142,"box":{"x":68,"y":460,"width":835,"height":12}},{"id":"ef2bf39e-fd6c-40e0-a12c-6d709a49235d","block_type":"box","text":"Pennsylvania Municipal Bond Fund of BlackRock Multi-State Municipal Series Trust, BlackRock Event Driven Equity","page_number":142,"box":{"x":69,"y":475,"width":813,"height":12}},{"id":"5b999557-bf4c-44e8-b70f-689303120887","block_type":"box","text":"Fund and BlackRock Balanced Fund, Inc., and $500,000 for BlackRock Low Duration Bond Portfolio, BlackRock","page_number":142,"box":{"x":70,"y":490,"width":792,"height":11}},{"id":"56acc729-08e2-4082-be9b-fd9ee3fc7912","block_type":"box","text":"Floating Rate Income Portfolio, BlackRock Income Fund and BlackRock Strategic Income Opportunities Portfolio of","page_number":142,"box":{"x":70,"y":506,"width":813,"height":11}},{"id":"36f3ec56-cdbe-4da6-a9a0-291f35c7e720","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":142,"box":{"x":70,"y":521,"width":837,"height":11}},{"id":"4f95db21-1a68-4122-9d96-e94dddf2ae90","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":142,"box":{"x":70,"y":536,"width":790,"height":11}},{"id":"cc75c484-d711-4668-bbae-4e248172ea3a","block_type":"box","text":"shorter holding period may apply depending on the Fund), you may be charged a deferred sales charge.","page_number":142,"box":{"x":69,"y":551,"width":736,"height":11}},{"id":"f813fb71-75a8-4b2b-ba99-c4941488fbe9","block_type":"box","text":"A deferred sales charge of up to 1.00% may apply to certain redemptions of Investor A Shares of the Index","page_number":142,"box":{"x":101,"y":574,"width":763,"height":11}},{"id":"c96863dc-3dcf-489f-98ca-1b5058b33e8c","block_type":"box","text":"Funds and BlackRock Short Obligations Fund purchased in an exchange transaction for Investor A Shares of a","page_number":142,"box":{"x":70,"y":589,"width":782,"height":11}},{"id":"7d670d3c-7ed5-46b6-bab5-1b5b292c8305","block_type":"box","text":"portfolio advised by BlackRock or its affiliates where no initial sales charge was paid at the time of purchase of such","page_number":142,"box":{"x":70,"y":604,"width":832,"height":11}},{"id":"0f12aa4d-ff9d-4b97-8cc9-634f0053c874","block_type":"box","text":"fund (an “Investor A Load-Waived BlackRock Portfolio”) as part of an investment of $1,000,000 (lesser amounts may","page_number":142,"box":{"x":68,"y":618,"width":839,"height":12}},{"id":"2adba733-bbf4-4628-b7db-8d086509d60f","block_type":"box","text":"apply depending on the Investor A Load-Waived BlackRock Portfolio) or more. The Investor A Shares deferred sales","page_number":142,"box":{"x":69,"y":634,"width":817,"height":12}},{"id":"043b76f3-762d-4bc3-aae3-7d01304f520d","block_type":"box","text":"charge is only charged upon redemptions of Investor A Shares within 18 months after you originally acquired such","page_number":142,"box":{"x":69,"y":649,"width":811,"height":12}},{"id":"8a14847c-0a99-468a-9b96-21440d4dfc64","block_type":"box","text":"Investor A Shares of the Investor A Load-Waived BlackRock Portfolio (a shorter holding period may apply depending","page_number":142,"box":{"x":70,"y":664,"width":818,"height":12}},{"id":"57bf3863-d25c-4f20-909e-605a3b4ae706","block_type":"box","text":"on the Investor A Load-Waived BlackRock Portfolio), unless you qualify for a waiver. There is no deferred sales charge","page_number":142,"box":{"x":69,"y":680,"width":836,"height":11}},{"id":"fc57246a-ec8c-4f3c-95d8-cdd9a2d1f08c","block_type":"box","text":"charged on redemptions if you have owned your Investor A Shares for more than 18 months (or for a shorter holding","page_number":142,"box":{"x":69,"y":695,"width":830,"height":11}},{"id":"3a06744f-36f9-4637-b2cf-edb52b2e8466","block_type":"box","text":"period, as applicable) (as measured from your original purchase of Investor A Shares that you exchanged into","page_number":142,"box":{"x":70,"y":710,"width":778,"height":11}},{"id":"37ccbfed-bf82-4e37-86b0-73ed84ae9266","block_type":"box","text":"Investor A Shares of the Index Fund or BlackRock Short Obligations Fund).","page_number":142,"box":{"x":70,"y":725,"width":526,"height":11}},{"id":"5e29ed55-fc8f-44b0-9bcc-11f2bf9da5dd","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":142,"box":{"x":101,"y":748,"width":788,"height":11}},{"id":"42bde8f6-2004-4a2d-993a-fd43614a2155","block_type":"box","text":"(a) redemptions of Investor A or Investor P Shares purchased through certain employer-sponsored retirement plans","page_number":142,"box":{"x":69,"y":763,"width":819,"height":11}},{"id":"0059bf6c-d14f-4ab8-a79d-0bd5c81ed991","block_type":"box","text":"and rollovers of current investments in a Fund through such plans; (b) exchanges described in “Exchange Privilege”","page_number":142,"box":{"x":69,"y":778,"width":820,"height":11}},{"id":"aac91fd2-f8db-4dd6-86a9-c818b5290924","block_type":"box","text":"below; (c) redemptions made in connection with minimum required distributions from IRA and 403(b)(7) accounts due","page_number":142,"box":{"x":69,"y":793,"width":837,"height":11}},{"id":"974b670a-679b-4ed5-a970-c84a514cf8d4","block_type":"box","text":"to the shareholder reaching the applicable age triggering such distributions; (d) redemptions made with respect to","page_number":142,"box":{"x":68,"y":808,"width":812,"height":11}},{"id":"298af520-0cf5-482b-8bb6-0fc8f0fdb4cb","block_type":"box","text":"certain retirement plans sponsored by a Fund, BlackRock or its affiliates; (e) redemptions (i) within one year of a","page_number":142,"box":{"x":69,"y":823,"width":803,"height":11}},{"id":"a9953463-655c-459d-a020-d050149ea6bc","block_type":"box","text":"shareholder’s death or, if later, the receipt of a certified probate settlement (including in connection with the","page_number":142,"box":{"x":69,"y":838,"width":772,"height":12}},{"id":"4426ab00-7dfe-4d10-bc57-11ff742fda79","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":142,"box":{"x":69,"y":853,"width":835,"height":12}},{"id":"9fa779a6-6c48-4401-9cff-90380512026b","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":142,"box":{"x":69,"y":869,"width":814,"height":11}},{"id":"c632916d-8b5f-4485-8b06-0bb98d57ab38","block_type":"box","text":"Investor A or Investor P Shares in accounts with low balances; (g) certain redemptions made pursuant to the","page_number":142,"box":{"x":70,"y":884,"width":772,"height":11}},{"id":"bf3755d0-8793-4cc5-aed3-b07cf3275778","block_type":"box","text":"Systematic Withdrawal Plan (described below); (h) redemptions related to the payment of BNY Mellon Investment","page_number":142,"box":{"x":69,"y":899,"width":805,"height":11}},{"id":"be730b10-7f57-415e-bb68-bd7145d5e63c","block_type":"box","text":"II-104","page_number":142,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"57f23a47-bf9f-48a9-a5d5-fcf6c7ca41e8","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":142,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"32b136ff-8e90-4c09-8a92-7ecf36bef513","block_type":"box","text":"Servicing Trust Company custodial IRA fees; and (i) redemptions when a shareholder can demonstrate hardship, in","page_number":143,"box":{"x":69,"y":45,"width":817,"height":11}},{"id":"65ebdf80-3534-4b94-8d17-049b55b6b719","block_type":"box","text":"the absolute discretion of a Fund.","page_number":143,"box":{"x":68,"y":60,"width":239,"height":9}},{"id":"f7a9a2f2-4bcd-499c-8e0a-f846797611cd","block_type":"box","text":"With respect to certain employer-sponsored retirement plans, if a dealer waives its right to receive a placement","page_number":143,"box":{"x":101,"y":82,"width":794,"height":12}},{"id":"22490051-3c75-41b5-9652-76f2181f642f","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":143,"box":{"x":68,"y":97,"width":776,"height":12}},{"id":"000e883a-d4ac-456d-8c96-10e6eaef9cbc","block_type":"box","text":"BlackRock Dynamic High Income Portfolio, BlackRock Multi-Asset Income Portfolio and BlackRock Managed Income","page_number":143,"box":{"x":70,"y":113,"width":821,"height":11}},{"id":"f41c1810-0d51-4755-8d28-1284a75a3b34","block_type":"box","text":"Fund of BlackRock Funds II, BlackRock Credit Relative Value Fund of BlackRock Funds IV, BlackRock Total Return","page_number":143,"box":{"x":70,"y":128,"width":800,"height":10}},{"id":"172d4ace-0456-4ab5-838f-975b4a556488","block_type":"box","text":"Fund of BlackRock Bond Fund, Inc., BlackRock Global Allocation Fund, Inc., BlackRock National Municipal Fund of","page_number":143,"box":{"x":70,"y":143,"width":806,"height":11}},{"id":"418cc7a2-7441-4e9d-af48-71da3e3888d0","block_type":"box","text":"BlackRock Municipal Bond Fund, Inc., BlackRock Short Duration Muni Fund of BlackRock Municipal Bond Fund, Inc.,","page_number":143,"box":{"x":70,"y":158,"width":823,"height":11}},{"id":"ac9839f4-87d5-4f13-b9f3-14b1624ad74b","block_type":"box","text":"BlackRock Strategic Municipal Opportunities Fund of BlackRock Municipal Series Trust, BlackRock California","page_number":143,"box":{"x":70,"y":173,"width":770,"height":11}},{"id":"b1dc71f4-1400-4d24-83a1-0514f1fb496b","block_type":"box","text":"Municipal Opportunities Fund of BlackRock California Municipal Series Trust, BlackRock New York Municipal","page_number":143,"box":{"x":70,"y":188,"width":766,"height":11}},{"id":"62c06708-8410-423e-b386-37b22be8660e","block_type":"box","text":"Opportunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock Pennsylvania Municipal Bond Fund of","page_number":143,"box":{"x":69,"y":203,"width":837,"height":12}},{"id":"8f6779a4-28dc-42d5-b732-e9785a58b084","block_type":"box","text":"BlackRock Multi-State Municipal Series Trust, BlackRock Event Driven Equity Fund and BlackRock Balanced Fund,","page_number":143,"box":{"x":70,"y":219,"width":805,"height":11}},{"id":"641801c1-34b3-4c3d-8874-7e64c39ce5e7","block_type":"box","text":"Inc., and $500,000 for BlackRock Low Duration Bond Portfolio, BlackRock Floating Rate Income Portfolio, BlackRock","page_number":143,"box":{"x":70,"y":233,"width":832,"height":12}},{"id":"5836288b-c094-460e-a8d4-af2f30cf9f4b","block_type":"box","text":"Income Fund and BlackRock Strategic Income Opportunities Portfolio of BlackRock Funds V) or more of Investor A or","page_number":143,"box":{"x":70,"y":249,"width":828,"height":11}},{"id":"3fb66803-f10c-4249-855d-5e4f335ba66f","block_type":"box","text":"Investor P Shares. This may depend upon the policies, procedures and trading platforms of your financial","page_number":143,"box":{"x":70,"y":264,"width":746,"height":11}},{"id":"4745f9c3-5bf7-4166-90a9-64b0e1440be3","block_type":"box","text":"intermediary; consult your financial adviser.","page_number":143,"box":{"x":70,"y":279,"width":307,"height":11}},{"id":"a4069075-7393-4ed9-9c26-a822f3759b31","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":143,"box":{"x":102,"y":302,"width":799,"height":11}},{"id":"f4feaccf-c611-4228-a6bf-7f2783c22738","block_type":"box","text":"to transfer investment positions from a foreign registered investment company advised by BlackRock or its affiliates","page_number":143,"box":{"x":68,"y":317,"width":829,"height":11}},{"id":"680416c1-2314-4248-bfea-09854a3d82a7","block_type":"box","text":"to a U.S. registered BlackRock-advised fund.","page_number":143,"box":{"x":68,"y":332,"width":317,"height":11}},{"id":"03eec155-7587-4dcf-a630-a715de6c1b35","block_type":"box","text":"Acquisition of Cer tain Investment Companies.","page_number":143,"box":{"x":101,"y":355,"width":326,"height":11}},{"id":"19c87e35-dc99-4030-b55e-4d618bd99dd3","block_type":"box","text":"Investor A and Investor P Shares may be offered at NAV in","page_number":143,"box":{"x":434,"y":355,"width":413,"height":11}},{"id":"88e2e6ae-27b0-4bb8-98a3-814198574efa","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":143,"box":{"x":69,"y":370,"width":811,"height":11}},{"id":"dc2b4160-881d-4344-b78e-3c1b82cd5ae3","block_type":"box","text":"public or private investment company.","page_number":143,"box":{"x":70,"y":385,"width":266,"height":11}},{"id":"9488a7d4-4591-4dd4-931f-29df8a9f0693","block_type":"box","text":"Purchases Through Cer tain Financial Intermediaries.","page_number":143,"box":{"x":102,"y":408,"width":372,"height":11}},{"id":"4a3458fa-31bc-432d-9225-dc3d2653ebe2","block_type":"box","text":"Reduced sales charges may be applicable for purchases of","page_number":143,"box":{"x":481,"y":407,"width":421,"height":12}},{"id":"7f856d1a-e044-413f-bd17-e7dd680a5794","block_type":"box","text":"Investor A, Investor A1 or Investor P Shares of a Fund through certain financial advisers, selected securities dealers","page_number":143,"box":{"x":70,"y":423,"width":825,"height":11}},{"id":"bb11e912-e369-491d-96f7-66accdd155f1","block_type":"box","text":"and other financial intermediaries that meet and adhere to standards established by the Manager from time to time.","page_number":143,"box":{"x":69,"y":438,"width":830,"height":11}},{"id":"cf7c19d5-e29b-4cd3-9de3-ca9dcf1f9dfc","block_type":"box","text":"Deferred Sales Charge Alternative — Investor C Shares","page_number":143,"box":{"x":69,"y":468,"width":405,"height":11}},{"id":"dc198bd7-1355-4492-8601-30120fc7824f","block_type":"box","text":"Investors choosing the deferred sales charge alternative should consider Investor C Shares if they are uncertain","page_number":143,"box":{"x":102,"y":491,"width":799,"height":11}},{"id":"d8c8bad2-f78e-429a-aec9-7d146817fe47","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":143,"box":{"x":69,"y":506,"width":828,"height":11}},{"id":"a30a4097-5cf6-40ae-8b8f-64f5e13ac42b","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":143,"box":{"x":70,"y":520,"width":778,"height":12}},{"id":"7f0aa893-3076-417e-83c9-25a0d99e1f0e","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":143,"box":{"x":70,"y":536,"width":826,"height":11}},{"id":"313e280c-c12d-4521-9d42-9f05d3b4e6ad","block_type":"box","text":"set a lower maximum for Investor C Shares.","page_number":143,"box":{"x":69,"y":551,"width":311,"height":9}},{"id":"d7f580b5-a619-4149-84bc-70428ad08625","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":143,"box":{"x":102,"y":574,"width":789,"height":11}},{"id":"90a639bd-56c2-4af5-86b8-d94d055e30d0","block_type":"box","text":"intermediary associated with the account.","page_number":143,"box":{"x":70,"y":589,"width":297,"height":11}},{"id":"ac9141c7-d649-4d74-9016-f4e0676191e0","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":143,"box":{"x":102,"y":612,"width":669,"height":11}},{"id":"1a5ba4a2-a2a6-462c-a373-ce8e9e4b6b37","block_type":"box","text":"The deferred sales charge alternatives may be particularly appealing to investors who do not qualify for the","page_number":143,"box":{"x":101,"y":634,"width":763,"height":12}},{"id":"87d791fd-9ba0-422a-946a-04a9abe785e0","block_type":"box","text":"reduction in initial sales charges. CDSC shares are subject to ongoing service fees and distribution fees; however,","page_number":143,"box":{"x":69,"y":649,"width":815,"height":12}},{"id":"6a7b5891-7bc5-4e87-82cf-810d74fd14fa","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":143,"box":{"x":68,"y":664,"width":813,"height":12}},{"id":"c6912df3-02b7-4249-ad2b-e09a5399f2e7","block_type":"box","text":"CDSC shares.","page_number":143,"box":{"x":69,"y":680,"width":97,"height":9}},{"id":"d476d284-d9b4-40a8-9962-3f33af74c155","block_type":"box","text":"BlackRock compensates financial advisers and other financial intermediaries for selling CDSC shares at the time","page_number":143,"box":{"x":102,"y":702,"width":804,"height":12}},{"id":"0a5b8b8c-4726-4371-b349-80e2b6d27393","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":143,"box":{"x":69,"y":717,"width":827,"height":11}},{"id":"0516e440-0222-4f4b-b29c-8e7cd40ba6ea","block_type":"box","text":"used by the Distributor to defray the expenses of securities dealers or other financial intermediaries related to","page_number":143,"box":{"x":69,"y":732,"width":786,"height":12}},{"id":"dceff8ca-ec27-465f-8358-1fcf40888388","block_type":"box","text":"providing distribution-related services to each Fund in connection with the sale of the CDSC shares. The combination","page_number":143,"box":{"x":70,"y":748,"width":831,"height":11}},{"id":"adf0ba22-d9df-411e-a9c2-551eed5f6aec","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":143,"box":{"x":69,"y":763,"width":809,"height":11}},{"id":"1568742c-b5e9-4ecb-b42c-e929e6afcf6f","block_type":"box","text":"sales charge being deducted at the time of purchase. See “Distribution and/or Shareholder Servicing Plans” below.","page_number":143,"box":{"x":69,"y":778,"width":824,"height":11}},{"id":"14ac21e0-ffda-4dfe-b4f1-a50ccadd40fc","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":143,"box":{"x":70,"y":793,"width":822,"height":11}},{"id":"dc52b553-d10b-46e6-982d-c8c27e05af52","block_type":"box","text":"sales charge rule. See “Limitations on the Payment of Deferred Sales Charges” below.","page_number":143,"box":{"x":69,"y":808,"width":618,"height":11}},{"id":"5947d481-45aa-460d-926c-9006dc504b2b","block_type":"box","text":"Dealers will generally immediately receive commissions equal to 1.00% of the Investor C Shares sold by them","page_number":143,"box":{"x":102,"y":831,"width":782,"height":11}},{"id":"dbf9fa6c-38c3-4b9f-9c68-60356924f6e8","block_type":"box","text":"plus ongoing fees under the Fund’s Distribution and Service Plan. Dealers may not receive a commission in","page_number":143,"box":{"x":70,"y":846,"width":764,"height":11}},{"id":"82aca90b-b5d8-4f33-9ab9-b5d8b2dd64e8","block_type":"box","text":"connection with sales of Investor C Shares to certain employer-sponsored retirement plans sponsored by the Fund,","page_number":143,"box":{"x":69,"y":861,"width":820,"height":11}},{"id":"5e4a3098-c30e-4a97-8272-88314400b82b","block_type":"box","text":"BlackRock or its affiliates, but may receive fees under the Distribution and Service Plan. These commissions and","page_number":143,"box":{"x":70,"y":876,"width":806,"height":11}},{"id":"89711dec-9ca0-447d-98df-3bddc9530b9d","block_type":"box","text":"payments may be different than the reallowances, placement fees and commissions paid to dealers in connection","page_number":143,"box":{"x":70,"y":891,"width":813,"height":11}},{"id":"39b64b3d-67d3-4675-9525-0da18ee77e59","block_type":"box","text":"II-105","page_number":143,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"91b7c8c7-32fa-462f-aa87-3cf2bb80579e","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":143,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b51fd21b-c068-4a55-9711-fe58f9abc631","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":144,"box":{"x":68,"y":45,"width":811,"height":11}},{"id":"4760abbe-8c58-4ba3-b326-4821cadb6c11","block_type":"box","text":"trading platforms of your financial intermediary; consult your financial adviser.","page_number":144,"box":{"x":68,"y":60,"width":554,"height":11}},{"id":"6b27492a-4cae-442a-83d3-f8d889e6319a","block_type":"box","text":"Each Fund has adopted an automatic conversion feature for Investor C Shares. Effective November 23, 2020,","page_number":144,"box":{"x":102,"y":82,"width":783,"height":11}},{"id":"4fd45fd7-6174-4822-af06-0b9847315a0b","block_type":"box","text":"Investor C Shares held for approximately eight years will be converted into Investor A Shares, as set forth in each","page_number":144,"box":{"x":70,"y":98,"width":808,"height":11}},{"id":"844ab04b-145f-4978-a40c-f11ea59c55ee","block_type":"box","text":"Fund’s Prospectus. In addition, accounts that do not have a financial intermediary associated with them are not","page_number":144,"box":{"x":70,"y":113,"width":797,"height":11}},{"id":"7eec40ec-0050-4402-bded-f0a47d36ed76","block_type":"box","text":"eligible to hold Investor C Shares, and any Investor C Shares held in such accounts will be automatically converted to","page_number":144,"box":{"x":69,"y":128,"width":837,"height":11}},{"id":"db5ea362-687b-4757-a74f-533d6a85a838","block_type":"box","text":"Investor A Shares.","page_number":144,"box":{"x":70,"y":143,"width":128,"height":9}},{"id":"269810fc-d6ed-4fd2-b3ca-70bb5fc0be7e","block_type":"box","text":"Conversion of Investor C Shares to Investor A Shares","page_number":144,"box":{"x":102,"y":166,"width":378,"height":9}},{"id":"60273815-62f7-49fc-98b6-8ffe3b60457b","block_type":"box","text":"Effective November 23, 2020 (the “Effective Date”), approximately eight years after purchase, Investor C Shares","page_number":144,"box":{"x":102,"y":188,"width":804,"height":12}},{"id":"e80a9e1a-c0a4-4f20-b04b-99509c834e7e","block_type":"box","text":"of each Fund will convert automatically into Investor A Shares of that Fund (the “Investor C 8-Year Conversion”).","page_number":144,"box":{"x":69,"y":203,"width":794,"height":12}},{"id":"8cfe99d9-e0d0-4bee-bfe2-c4904bdea4fe","block_type":"box","text":"Certain funds (the “Predecessor Funds”) were reorganized into new Funds (the “Successor Funds”) pursuant to","page_number":144,"box":{"x":69,"y":218,"width":794,"height":12}},{"id":"9c03a624-1bbf-4078-a8d6-44f865af0642","block_type":"box","text":"reorganizations which occurred in September 2018. The holding period for Investor C Shares of Successor Funds","page_number":144,"box":{"x":69,"y":234,"width":806,"height":11}},{"id":"57318c1e-84de-4280-b977-1adb764141e2","block_type":"box","text":"includes the period such shares were held in the respective Predecessor Fund. It is the financial intermediary’s","page_number":144,"box":{"x":70,"y":249,"width":793,"height":11}},{"id":"07d902f2-bda8-48c3-9255-af2020877a00","block_type":"box","text":"responsibility to ensure that the shareholder is credited with the proper holding period. As of the Effective Date,","page_number":144,"box":{"x":69,"y":264,"width":796,"height":11}},{"id":"690e1800-49e5-4fb7-9133-ca6061f35b5b","block_type":"box","text":"certain financial intermediaries, including group retirement recordkeeping platforms, may not have been tracking","page_number":144,"box":{"x":69,"y":279,"width":802,"height":11}},{"id":"2f1d00d9-a7b9-4922-8718-b58c5cdb26d2","block_type":"box","text":"such holding periods and therefore may not be able to process such conversions. In such instances, Investor C","page_number":144,"box":{"x":69,"y":294,"width":793,"height":11}},{"id":"7c17369f-2ea9-450d-a0f5-e354e50a2b8d","block_type":"box","text":"Shares held as of the Effective Date will automatically convert to Investor A Shares approximately eight years after","page_number":144,"box":{"x":69,"y":309,"width":817,"height":11}},{"id":"203e5938-716f-49d0-b936-445cc0891db9","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":144,"box":{"x":68,"y":324,"width":814,"height":12}},{"id":"6fd5964d-b92a-43cc-b816-730778e82f23","block_type":"box","text":"not implemented systems or procedures to track holding periods commencing from the Effective Date, shareholders","page_number":144,"box":{"x":69,"y":339,"width":828,"height":12}},{"id":"aeffd6ee-18b0-442e-8400-cf8514117593","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":144,"box":{"x":69,"y":355,"width":832,"height":11}},{"id":"378aa1d1-39d4-4168-9fa1-60d4e198cad4","block_type":"box","text":"any such shares will convert to Investor A Shares as soon as reasonably practicable after such date.","page_number":144,"box":{"x":69,"y":370,"width":718,"height":11}},{"id":"d1b10286-a1f4-4b33-9ee4-4180ddc4cd76","block_type":"box","text":"In addition, accounts that do not have a financial intermediary associated with them are not eligible to hold","page_number":144,"box":{"x":102,"y":392,"width":764,"height":12}},{"id":"34910617-62d7-4f4f-a4a1-1a7d7082d0a2","block_type":"box","text":"Investor C Shares, and any Investor C Shares held in such accounts will be automatically converted into Investor A","page_number":144,"box":{"x":70,"y":408,"width":816,"height":11}},{"id":"b7bd678d-6706-4c31-ab7b-a74428992a85","block_type":"box","text":"Shares (the “Investor C Direct Accounts Conversion” and together with the Investor C 8-Year Conversion, the","page_number":144,"box":{"x":69,"y":423,"width":772,"height":11}},{"id":"463556ec-772f-4fb1-9633-a8d84e758572","block_type":"box","text":"“Investor C Conversions”).","page_number":144,"box":{"x":70,"y":438,"width":186,"height":11}},{"id":"b66124b4-1336-4eb9-b238-1ee194744e64","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":144,"box":{"x":101,"y":460,"width":776,"height":11}},{"id":"02b80a7d-3ce1-4608-8c77-afe24b11db40","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":144,"box":{"x":69,"y":475,"width":824,"height":11}},{"id":"a2a093a8-24ce-408c-b584-7d8a6fdb3059","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":144,"box":{"x":70,"y":491,"width":827,"height":11}},{"id":"b5a5ba56-840f-4183-bdda-124d37cc12e7","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":144,"box":{"x":69,"y":506,"width":833,"height":11}},{"id":"23edfb07-9a12-4abb-a6cb-34cbc93c5cd4","block_type":"box","text":"Shares will also convert automatically to Investor A Shares, as set forth in each Fund’s Prospectus. The Investor C","page_number":144,"box":{"x":69,"y":521,"width":818,"height":11}},{"id":"dff97a6b-9ea8-4010-9524-a63ec97e5efe","block_type":"box","text":"Conversion Date for dividend reinvestment shares will be calculated taking into account the length of time the shares","page_number":144,"box":{"x":69,"y":536,"width":836,"height":11}},{"id":"02c0cd97-15e0-40bb-bff9-91e7cd1ac86e","block_type":"box","text":"underlying the dividend reinvestment shares were outstanding.","page_number":144,"box":{"x":69,"y":551,"width":445,"height":11}},{"id":"80014e99-41aa-4918-8652-b496e9daa54b","block_type":"box","text":"Contingent Deferred Sales Charge — Investor C Shares","page_number":144,"box":{"x":102,"y":574,"width":396,"height":11}},{"id":"959284f4-38bd-47a4-bca6-0c472c9225ea","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":144,"box":{"x":102,"y":596,"width":804,"height":12}},{"id":"bce24d49-4c1b-430c-bd77-b703375e3865","block_type":"box","text":"percentage of the dollar amount subject thereto. In determining whether an Investor C Shares CDSC is applicable to","page_number":144,"box":{"x":70,"y":612,"width":826,"height":11}},{"id":"fa530e45-7455-41a8-9522-529c50967ccc","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":144,"box":{"x":69,"y":627,"width":837,"height":11}},{"id":"aee0687c-46d4-4fb4-93e0-fdb8745e8ae2","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":144,"box":{"x":68,"y":642,"width":795,"height":11}},{"id":"850f7ef7-a98b-4ca8-bc7e-9318faac5300","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":144,"box":{"x":69,"y":657,"width":840,"height":11}},{"id":"0380d8f4-a508-4098-a8e0-3cf7a3ed6b7e","block_type":"box","text":"Investor C Shares. In addition, no CDSC will be assessed on Investor C Shares acquired through reinvestment of","page_number":144,"box":{"x":70,"y":672,"width":804,"height":11}},{"id":"bce44e53-377c-43bc-8d94-cd14b5d55350","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":144,"box":{"x":69,"y":687,"width":772,"height":11}},{"id":"3f3fb5cb-f56d-4a9d-8047-0c610fa210e6","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":144,"box":{"x":70,"y":702,"width":790,"height":12}},{"id":"0f3e1314-6e6d-418c-b7fb-e36bd5d5a87f","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":144,"box":{"x":69,"y":717,"width":776,"height":9}},{"id":"31770ec0-243c-4385-a070-71c3e2715e6c","block_type":"box","text":"redemption.","page_number":144,"box":{"x":69,"y":733,"width":83,"height":10}},{"id":"6234293e-9025-4abe-8bb7-732d1d824ada","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Part I of each Fund’s SAI for","page_number":144,"box":{"x":102,"y":755,"width":734,"height":11}},{"id":"3f0e4172-439b-4e67-8846-47d22201e1ca","block_type":"box","text":"information about amounts paid to the Distributor in connection with CDSC shares for the periods indicated.","page_number":144,"box":{"x":70,"y":770,"width":769,"height":11}},{"id":"9984dacb-da58-4c8d-8cb5-0790bbab31ea","block_type":"box","text":"Investor C Shares — Contingent Deferred Sales Charge Waivers and Reductions","page_number":144,"box":{"x":102,"y":793,"width":572,"height":11}},{"id":"a143a9ab-ea60-4316-bbf5-66bdac85b6ec","block_type":"box","text":"The CDSC on Investor C Shares is not charged in connection with: (1) redemptions of Investor C Shares","page_number":144,"box":{"x":101,"y":816,"width":740,"height":11}},{"id":"0b6aaaba-116e-480a-9d70-5872269c53b1","block_type":"box","text":"purchased through certain employer-sponsored retirement plans and fee-based programs previously approved by","page_number":144,"box":{"x":70,"y":831,"width":802,"height":11}},{"id":"27b783f7-e0b2-4a67-81c4-1d3e8e4f73e0","block_type":"box","text":"certain Funds and rollovers of current investments in the Fund through such plans; (2) exchanges described in","page_number":144,"box":{"x":69,"y":846,"width":786,"height":11}},{"id":"67559111-f4a1-4c53-94f8-c149ba8f60a4","block_type":"box","text":"“Exchange Privilege” below; (3) redemptions made in connection with minimum required distributions due to the","page_number":144,"box":{"x":70,"y":861,"width":797,"height":11}},{"id":"42237e27-0dbc-41bb-88bd-4b2ce5f49efb","block_type":"box","text":"shareholder reaching age 72 from IRA and 403(b)(7) accounts; (4) redemptions made with respect to certain","page_number":144,"box":{"x":69,"y":876,"width":776,"height":11}},{"id":"634e6071-4bdb-4e8f-8504-e385e3d0e628","block_type":"box","text":"retirement plans sponsored by the Fund, BlackRock or its affiliates; (5) redemptions in connection with a","page_number":144,"box":{"x":69,"y":891,"width":747,"height":11}},{"id":"c4139509-4516-421b-a3a6-3958c3f6e6a4","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":144,"box":{"x":69,"y":906,"width":822,"height":12}},{"id":"fad8e9f5-1bb3-4b3e-92ef-2b6a0d522f24","block_type":"box","text":"II-106","page_number":144,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"0703eb13-1f34-4f3c-8dd5-64717a3236a9","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":144,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"94c47154-d534-41b1-b7d9-4bba499dcb1b","block_type":"box","text":"following completion of probate (including in connection with the distribution of account assets to a beneficiary of the","page_number":145,"box":{"x":68,"y":45,"width":836,"height":11}},{"id":"c30c0a82-94d0-45eb-ad74-b1630d4cf347","block_type":"box","text":"decedent) or disability (as defined in the Code) subsequent to the purchase of Investor C Shares; (6) withdrawals","page_number":145,"box":{"x":69,"y":60,"width":806,"height":11}},{"id":"97354873-8b6a-4eb2-80fd-586e822884da","block_type":"box","text":"resulting from shareholder disability (as defined in the Code) as long as the disability arose subsequent to the","page_number":145,"box":{"x":69,"y":75,"width":786,"height":11}},{"id":"e7cfea4c-e154-4cfd-a564-ced7ea3df571","block_type":"box","text":"purchase of the shares; (7) involuntary redemptions of Investor C Shares in accounts with low balances as described","page_number":145,"box":{"x":70,"y":90,"width":834,"height":11}},{"id":"90393a3d-1a86-438b-a4a1-7ef275ac7cbc","block_type":"box","text":"in “Redemption of Shares” below; (8) redemptions made pursuant to a systematic withdrawal plan, subject to the","page_number":145,"box":{"x":70,"y":105,"width":809,"height":11}},{"id":"e87197fd-f538-491e-b1dc-7dd8a68f08b6","block_type":"box","text":"limitations set forth under “Systematic Withdrawal Plan” below; (9) redemptions related to the payment of BNY","page_number":145,"box":{"x":70,"y":120,"width":791,"height":11}},{"id":"4fcb4e98-9997-485e-9f23-180e76d7c31e","block_type":"box","text":"Mellon Investment Servicing Trust Company custodial IRA fees; and (10) redemptions when a shareholder can","page_number":145,"box":{"x":70,"y":135,"width":784,"height":12}},{"id":"5fe96b3c-32e0-4ae5-868c-34da6f9db97b","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":145,"box":{"x":69,"y":150,"width":824,"height":12}},{"id":"4f06e48c-e464-4952-a6e4-23bc9b41f250","block_type":"box","text":"acquired through the reinvestment of dividends or distributions.","page_number":145,"box":{"x":69,"y":166,"width":451,"height":11}},{"id":"bc82a2ba-2412-47f2-bd4b-829f21a79db2","block_type":"box","text":"Certain CDSC waivers and reductions on Investor C Shares may be available to customers of certain financial","page_number":145,"box":{"x":102,"y":188,"width":781,"height":11}},{"id":"c924a763-53d2-40c7-81f9-5fcfbd08c13e","block_type":"box","text":"intermediaries, as described under “Intermediary-Defined Sales Charge Waiver Policies” in the Fund’s Prospectus.","page_number":145,"box":{"x":70,"y":203,"width":813,"height":12}},{"id":"f16f6ef4-74eb-4bf1-9d35-3a17260dc0f4","block_type":"box","text":"Please speak to your financial intermediary for more information.","page_number":145,"box":{"x":69,"y":218,"width":462,"height":12}},{"id":"96417097-81d1-444c-9991-7ce079fbd6de","block_type":"box","text":"Class R Shares","page_number":145,"box":{"x":69,"y":249,"width":110,"height":9}},{"id":"5a150f74-d56f-4fd3-858d-5e2ca8a30a59","block_type":"box","text":"Certain of the Funds offer Class R Shares as described in each such Fund’s Prospectus. Class R Shares are","page_number":145,"box":{"x":102,"y":271,"width":775,"height":11}},{"id":"6baaf632-ba9b-468c-9d41-026894d05271","block_type":"box","text":"available only to certain employer-sponsored retirement plans. Class R Shares are not subject to an initial sales","page_number":145,"box":{"x":69,"y":287,"width":799,"height":11}},{"id":"a6bc1115-7094-4918-bf2e-ef165cd1619c","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":145,"box":{"x":69,"y":302,"width":801,"height":11}},{"id":"547973fd-20e8-40fe-b8c7-eeb8f64f5329","block_type":"box","text":"0.25% per year. Distribution fees are used to support the Fund’s marketing and distribution efforts, such as","page_number":145,"box":{"x":69,"y":317,"width":772,"height":11}},{"id":"cc5704e7-026d-42e4-9d57-385b60407118","block_type":"box","text":"compensating financial advisers and other financial intermediaries, advertising and promotion. Service fees are used","page_number":145,"box":{"x":69,"y":332,"width":836,"height":11}},{"id":"b4d62219-80e8-457b-9af9-7caa7372d4a8","block_type":"box","text":"to compensate securities dealers and other financial intermediaries for service activities.","page_number":145,"box":{"x":68,"y":347,"width":636,"height":11}},{"id":"3add53bd-50df-42a4-ab18-2e5789b598ad","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":145,"box":{"x":102,"y":370,"width":791,"height":11}},{"id":"16db8a08-50aa-4e60-a260-ee9bec8dcb0b","block_type":"box","text":"have paid as a shareholder of one of the other share classes.","page_number":145,"box":{"x":69,"y":385,"width":440,"height":11}},{"id":"5dd98929-48aa-4bb3-981c-ae4a1084b5ac","block_type":"box","text":"Class K Shares","page_number":145,"box":{"x":69,"y":415,"width":109,"height":9}},{"id":"20fd2930-fce2-4aef-a827-78fa467e948a","block_type":"box","text":"Certain Funds offer Class K Shares as described in each such Fund’s Prospectus. Class K Shares are available","page_number":145,"box":{"x":102,"y":438,"width":797,"height":11}},{"id":"a2252da1-e51b-4b36-a427-6e041cd5df0b","block_type":"box","text":"only to (i) certain employee benefit plans, such as health savings accounts, and certain employer-sponsored","page_number":145,"box":{"x":69,"y":453,"width":772,"height":11}},{"id":"7d720703-af98-421e-8f44-e6355bd08daf","block_type":"box","text":"retirement plans (not including SEP IRAs, SIMPLE IRAs and SARSEPs) (collectively, “Employer-Sponsored Retirement","page_number":145,"box":{"x":69,"y":468,"width":827,"height":11}},{"id":"240e8e21-328a-4a0d-b191-7754dec1d338","block_type":"box","text":"Plans”), (ii) collective trust funds, investment companies and other pooled investment vehicles, each of which may","page_number":145,"box":{"x":69,"y":483,"width":817,"height":11}},{"id":"cbc57e5d-b26d-4699-87b5-ee8315ef7807","block_type":"box","text":"purchase shares of the Fund through a financial intermediary that has entered into an agreement with the Distributor","page_number":145,"box":{"x":70,"y":498,"width":834,"height":11}},{"id":"4c0a5c7b-11a4-4a0c-b57f-4b6644a9fa62","block_type":"box","text":"to purchase such shares, (iii) “Institutional Investors,” which include but are not limited to, endowments,","page_number":145,"box":{"x":68,"y":514,"width":748,"height":10}},{"id":"23f556f7-f0e2-4787-8233-99d4d8d1cdb1","block_type":"box","text":"foundations, family offices, banks and bank trusts, local, city, and state governmental institutions, corporations and","page_number":145,"box":{"x":68,"y":528,"width":828,"height":12}},{"id":"6b5bc428-7c60-4ea6-b74a-a3e1bc8e0919","block_type":"box","text":"insurance company separate accounts, each of which may purchase shares of the Fund through a financial","page_number":145,"box":{"x":70,"y":543,"width":760,"height":12}},{"id":"5183bd9f-fd1d-4806-9f8d-468b58451ee0","block_type":"box","text":"intermediary that has entered into an agreement with the Distributor to purchase such shares, (iv) clients of private","page_number":145,"box":{"x":70,"y":559,"width":823,"height":11}},{"id":"39864a51-b65c-46bc-85a1-148d2dd3e052","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":145,"box":{"x":69,"y":574,"width":836,"height":11}},{"id":"ff377581-c14c-43bb-95b8-1be74413f453","block_type":"box","text":"Distributor to sell such shares; (v) fee-based advisory platforms of a financial intermediary that (a) has specifically","page_number":145,"box":{"x":70,"y":589,"width":814,"height":11}},{"id":"51880fa1-bbc5-47a3-b3b5-5ea67cd1c2aa","block_type":"box","text":"acknowledged in a written agreement with the Distributor and/or its affiliate(s) that the financial intermediary shall","page_number":145,"box":{"x":69,"y":604,"width":817,"height":11}},{"id":"28962f0a-5a9d-448b-acfa-da938a6d9ace","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":145,"box":{"x":69,"y":619,"width":823,"height":11}},{"id":"ed460759-0951-4645-9d1b-5e8419a104ae","block_type":"box","text":"Fund’s shares through another intermediary that has executed such an agreement and (vi) any other investors who","page_number":145,"box":{"x":70,"y":634,"width":818,"height":12}},{"id":"f4116ee6-aff8-4970-8854-175c1cf6a687","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":145,"box":{"x":69,"y":649,"width":833,"height":12}},{"id":"07d420f5-e843-4edc-81f0-2f704144976f","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":145,"box":{"x":69,"y":664,"width":807,"height":12}},{"id":"4ba3d054-874b-4e65-8004-f1f462768c12","block_type":"box","text":"agreement referenced in (iv) above shall appear in a supplemental agreement to any selling, sub-transfer agent, or","page_number":145,"box":{"x":69,"y":680,"width":817,"height":11}},{"id":"00e7d3d0-1bea-4582-b3d6-a6b775eedc8b","block_type":"box","text":"distribution and marketing agreement.","page_number":145,"box":{"x":69,"y":695,"width":270,"height":11}},{"id":"ca3cec0d-5970-40e3-affe-cc9a82f5cf40","block_type":"box","text":"Class K Shares are also available to employees, officers and directors/trustees of BlackRock, Inc. and","page_number":145,"box":{"x":102,"y":717,"width":734,"height":12}},{"id":"d6a8ca65-bc72-4ce6-9c93-78ac940a7b3d","block_type":"box","text":"BlackRock Funds and immediate family members of such persons, if they open an account directly with BlackRock.","page_number":145,"box":{"x":70,"y":732,"width":817,"height":12}},{"id":"0d293b71-cb6b-4f87-88ce-44e9e99d7a4d","block_type":"box","text":"Eligible individuals who would like to convert existing holdings to Class K Shares must contact BlackRock.","page_number":145,"box":{"x":70,"y":748,"width":753,"height":11}},{"id":"88ae8204-d9b9-4ecf-ac4c-4ee99ec249ad","block_type":"box","text":"Class G Shares","page_number":145,"box":{"x":69,"y":778,"width":110,"height":9}},{"id":"5b98008c-1744-47d0-8456-7c9138e7bc8e","block_type":"box","text":"Certain Funds offer Class G Shares, which are available only to investors on eligible platforms. Eligible platforms","page_number":145,"box":{"x":102,"y":801,"width":804,"height":11}},{"id":"ec83b199-6513-4331-bde1-b674777f3412","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":145,"box":{"x":69,"y":816,"width":826,"height":11}},{"id":"7eec983a-c88f-45ab-be15-b662c18ef235","block_type":"box","text":"that meets an initial investment minimum of $2 billion. For clients investing through such eligible platforms, the Fund","page_number":145,"box":{"x":68,"y":830,"width":836,"height":12}},{"id":"75fb3a6e-82d1-4415-8088-b581b4751ec1","block_type":"box","text":"does not impose investment minimums on any individual investor. Financial intermediaries may impose separate","page_number":145,"box":{"x":69,"y":846,"width":803,"height":11}},{"id":"8565e2ce-cce7-4c80-958b-0fc6f6138a15","block_type":"box","text":"eligibility requirements.","page_number":145,"box":{"x":69,"y":861,"width":164,"height":11}},{"id":"17e81156-9972-46da-bee0-6e27e9440ca4","block_type":"box","text":"II-107","page_number":145,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"f05d6794-74a1-48f1-a3d6-499964539aff","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":145,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5d74b724-430a-4739-8f12-f5eb0fbcedf5","block_type":"box","text":"Service Shares","page_number":146,"box":{"x":68,"y":45,"width":109,"height":9}},{"id":"ede78e6c-f307-419d-9818-455ff3638ec0","block_type":"box","text":"Certain Funds offer Service Shares, which are available only to certain investors, including: (i) certain financial","page_number":146,"box":{"x":102,"y":67,"width":788,"height":12}},{"id":"9b4196c9-aa2a-487d-b3b3-764f5b5c55fc","block_type":"box","text":"institutions, such as banks and brokerage firms, acting on behalf of their customers; (ii) certain persons who were","page_number":146,"box":{"x":70,"y":82,"width":815,"height":12}},{"id":"7b9a32f3-b720-4a50-a891-0b7a1e78e1c3","block_type":"box","text":"shareholders of the Compass Capital Group of Funds at the time of its combination with The PNC","page_number":146,"box":{"x":69,"y":98,"width":693,"height":11}},{"id":"4e93d8f8-08db-4c10-ab19-800817edb67b","block_type":"box","text":"®","page_number":146,"box":{"x":763,"y":98,"width":6,"height":4}},{"id":"f6886333-167f-4fef-846c-a35b3496849a","block_type":"box","text":"Fund in 1996; and","page_number":146,"box":{"x":775,"y":98,"width":130,"height":10}},{"id":"d346193d-89d5-4fc5-a5d8-243076fe1508","block_type":"box","text":"(iii) participants in the Capital Directions","page_number":146,"box":{"x":69,"y":113,"width":287,"height":11}},{"id":"e652db31-105a-473a-93f7-630af60221ae","block_type":"box","text":"SM","page_number":146,"box":{"x":357,"y":113,"width":11,"height":5}},{"id":"7eee650a-b462-43cf-8c6b-a9a69cd24265","block_type":"box","text":"asset allocation program. Service Shares are not subject to an initial sales","page_number":146,"box":{"x":374,"y":113,"width":534,"height":11}},{"id":"80120e1f-cdf5-4d90-a2d9-efa3f1ff940d","block_type":"box","text":"charge or a CDSC but are subject to an ongoing service fee as set forth in the applicable Fund’s Prospectus.","page_number":146,"box":{"x":69,"y":128,"width":776,"height":11}},{"id":"6e6bf9c5-bfc0-4822-a7f2-800d3fb955a6","block_type":"box","text":"BlackRock Shares","page_number":146,"box":{"x":69,"y":158,"width":133,"height":9}},{"id":"222b816c-8313-40da-9199-a3fb6e4e0a9e","block_type":"box","text":"Certain Funds offer BlackRock Shares, which are available only to certain investors. BlackRock Shares are","page_number":146,"box":{"x":102,"y":181,"width":760,"height":11}},{"id":"f971663c-3030-48c3-83cc-6cd2fe6ade17","block_type":"box","text":"offered without a sales charge to institutional and individual investors, registered investment advisers and certain","page_number":146,"box":{"x":69,"y":196,"width":813,"height":11}},{"id":"d8faf628-4d6c-470c-9b19-733cf3ed9154","block_type":"box","text":"fee-based programs.","page_number":146,"box":{"x":68,"y":211,"width":145,"height":11}},{"id":"18792f5c-71f1-4863-bbc8-821df749e4ca","block_type":"box","text":"Distribution and/or Shareholder Servicing Plans","page_number":146,"box":{"x":69,"y":241,"width":348,"height":11}},{"id":"8fc8c5f2-6934-4dc7-9556-c470b74c98f3","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":146,"box":{"x":102,"y":264,"width":790,"height":11}},{"id":"30c0f4b0-55b5-4fe9-be80-5282a2b239c5","block_type":"box","text":"respect to certain share classes that allows the Fund to pay distribution fees for the sale of its shares and","page_number":146,"box":{"x":69,"y":279,"width":761,"height":11}},{"id":"51b37f8c-b70c-4216-8345-968c8d1d72e9","block_type":"box","text":"shareholder servicing fees for certain services provided to its shareholders.","page_number":146,"box":{"x":69,"y":294,"width":541,"height":11}},{"id":"b82fe8e8-131e-4708-9481-b751a50e237b","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":146,"box":{"x":102,"y":317,"width":803,"height":11}},{"id":"ce344432-f3de-43e5-b650-1b7f7ef2d258","block_type":"box","text":"BlackRock, fees for distribution and sales support services with respect to Investor A, Investor A1, Investor C,","page_number":146,"box":{"x":70,"y":332,"width":783,"height":11}},{"id":"3a0ef475-9d67-4934-8dc0-cbf4587ddafd","block_type":"box","text":"Investor P, Service and Class R Shares. Currently, as described further below, only Investor C and Class R Shares","page_number":146,"box":{"x":70,"y":347,"width":809,"height":11}},{"id":"b6e50398-dd76-4be7-897e-330e67812b11","block_type":"box","text":"bear the expense of distribution fees under a Plan.","page_number":146,"box":{"x":69,"y":362,"width":360,"height":11}},{"id":"2d618c54-d574-4e32-a8e7-6a5ccbf21e34","block_type":"box","text":"Each Fund has entered into a distribution agreement with BRIL under which BRIL, as agent, offers shares of","page_number":146,"box":{"x":102,"y":385,"width":770,"height":11}},{"id":"f2e9cba4-44a5-4c3f-a07d-38328c2db8d6","block_type":"box","text":"each Fund on a continuous basis. BRIL has agreed to use appropriate efforts to effect sales of the shares, but it is","page_number":146,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"9a95f960-6b05-4ad3-8e1f-6019446a13da","block_type":"box","text":"not obligated to sell any particular amount of shares. BRIL’s principal business address is 50 Hudson Yards, New","page_number":146,"box":{"x":69,"y":415,"width":812,"height":11}},{"id":"a5e6da97-db5d-4c94-9b8e-0767b7434fd2","block_type":"box","text":"York, NY 10001. BRIL is an affiliate of BlackRock.","page_number":146,"box":{"x":68,"y":430,"width":355,"height":11}},{"id":"3be5740d-784f-4873-ac13-01e6abfbb21c","block_type":"box","text":"Pursuant to the Plans, each Fund may also pay shareholder servicing fees (also referred to as general","page_number":146,"box":{"x":102,"y":453,"width":727,"height":11}},{"id":"e7d90988-bef3-42a5-9321-6f5e0d53ec19","block_type":"box","text":"shareholder liaison services fees) to affiliated and unaffiliated brokers, dealers, financial institutions, insurance","page_number":146,"box":{"x":69,"y":468,"width":799,"height":11}},{"id":"412031e0-5f4a-474f-9b5e-9de4cb198321","block_type":"box","text":"companies, retirement plan record-keepers and other financial intermediaries (including BlackRock, BRIL and their","page_number":146,"box":{"x":69,"y":483,"width":813,"height":11}},{"id":"5d5594d7-3645-4fa6-a7d8-308f9b41f1af","block_type":"box","text":"affiliates) (collectively, “Service Organizations”) for certain support services rendered by Service Organizations to","page_number":146,"box":{"x":69,"y":498,"width":809,"height":11}},{"id":"68417355-33d9-4808-b947-73fc9074e34b","block_type":"box","text":"their customers (“Customers”) who are the beneficial owners of Investor A, Investor A1, Investor C, Investor P,","page_number":146,"box":{"x":68,"y":513,"width":786,"height":11}},{"id":"b138f2bb-7808-496e-be2c-4cbeeb313c4a","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":146,"box":{"x":69,"y":528,"width":789,"height":12}},{"id":"6f954a31-1e11-429b-8840-e2d1500912c0","block_type":"box","text":"Fund’s Administrators and Transfer Agent to the Fund’s shareholders of record.","page_number":146,"box":{"x":70,"y":543,"width":562,"height":12}},{"id":"154f2cab-827f-4b2b-af61-f8c14857cca2","block_type":"box","text":"The support services provided by Service Organizations are general shareholder liaison services, which include,","page_number":146,"box":{"x":101,"y":566,"width":798,"height":11}},{"id":"70da4bfe-02ba-405e-bfd1-a847f9f613d1","block_type":"box","text":"but are not limited to: (i) answering Customer inquiries regarding account status and history, the manner in which","page_number":146,"box":{"x":69,"y":581,"width":808,"height":12}},{"id":"8b5a0565-8991-43a7-9168-d04c96ac8221","block_type":"box","text":"purchases, exchanges and redemptions or repurchases of shares may be effected and certain other matters","page_number":146,"box":{"x":70,"y":596,"width":776,"height":12}},{"id":"86ae5246-eef2-4853-8114-f8a7f216a4e2","block_type":"box","text":"pertaining to the Customers’ investments; and (ii) assisting Customers in designating and changing dividend options,","page_number":146,"box":{"x":70,"y":612,"width":835,"height":11}},{"id":"f83b9eb0-6a80-4e30-8b79-d101239b3de5","block_type":"box","text":"account designations and addresses. The shareholder servicing fees payable pursuant to the Plans are paid to","page_number":146,"box":{"x":69,"y":627,"width":791,"height":11}},{"id":"8681f274-68a0-4f26-a2d5-c3c5e47c760b","block_type":"box","text":"compensate Service Organizations for the administration and servicing of shareholder accounts and are not costs","page_number":146,"box":{"x":69,"y":642,"width":813,"height":11}},{"id":"d57fa314-9411-4801-ba92-6a6d9b1f16e8","block_type":"box","text":"which are primarily intended to result in the sale of the Fund’s shares.","page_number":146,"box":{"x":68,"y":657,"width":501,"height":11}},{"id":"4a58bab9-163c-4b1d-a401-0b1924abd240","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":146,"box":{"x":102,"y":680,"width":783,"height":11}},{"id":"008107d4-aee6-4afa-b830-a7fd54143817","block_type":"box","text":"the applicable share class regardless of the amount of expenses incurred. As a result, payments under the Plans","page_number":146,"box":{"x":68,"y":695,"width":810,"height":11}},{"id":"af96f220-0b38-4e54-948a-33bed2305c79","block_type":"box","text":"may be more or less than expenses incurred in connection with providing distribution and/or shareholder services","page_number":146,"box":{"x":69,"y":710,"width":813,"height":11}},{"id":"3bc41ff5-c2c6-4434-929f-bcd43733a3e9","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":146,"box":{"x":68,"y":725,"width":836,"height":11}},{"id":"ef0f03fa-c421-489b-8ffa-9eee54054f55","block_type":"box","text":"providing services with respect to the related class is presented to the Directors for their consideration quarterly.","page_number":146,"box":{"x":70,"y":740,"width":805,"height":11}},{"id":"a39fc143-a56a-4758-b6df-3d637274f45e","block_type":"box","text":"Payments under the Plans consist of the shareholder servicing fees and the distribution fees. Expenses with respect","page_number":146,"box":{"x":69,"y":755,"width":832,"height":11}},{"id":"76740f5e-6997-42a8-888e-f9ea341fa82d","block_type":"box","text":"to providing distribution and/or shareholder services with respect to a class may consist of Service Organization","page_number":146,"box":{"x":68,"y":770,"width":803,"height":12}},{"id":"c2d67b10-f3fb-47f3-83ab-29b12232d980","block_type":"box","text":"financial adviser compensation, branch office and regional operation center selling and transaction processing","page_number":146,"box":{"x":68,"y":785,"width":788,"height":12}},{"id":"facea51a-25a9-435c-9d35-e661ad0ddab1","block_type":"box","text":"expenses, advertising, sales promotion and marketing expenses. Payments under the Plans with respect to one","page_number":146,"box":{"x":69,"y":801,"width":798,"height":11}},{"id":"69a40f13-1664-41ab-80a7-7aeded91eb2b","block_type":"box","text":"class will not be used to finance the expenditures of another class. Sales personnel may receive different","page_number":146,"box":{"x":69,"y":816,"width":755,"height":11}},{"id":"d26cd10e-d23f-4a56-ba2c-ef837ed0de57","block_type":"box","text":"compensation for selling different classes of shares.","page_number":146,"box":{"x":69,"y":831,"width":375,"height":11}},{"id":"aa81a86d-b3e6-4b92-b239-cb7f5236f80c","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":146,"box":{"x":102,"y":853,"width":803,"height":12}},{"id":"8cef2dc3-4e5b-4dfd-af7e-1f4b6880074f","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":146,"box":{"x":69,"y":869,"width":839,"height":11}},{"id":"4223c92d-e86e-41c9-a8dc-8ed1f0eb7cd8","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":146,"box":{"x":68,"y":884,"width":788,"height":11}},{"id":"0f4e6714-0ccd-48fc-b316-077d60d0d42f","block_type":"box","text":"interested Directors concluded that there is reasonable likelihood that the Plan will benefit the Fund and its related","page_number":146,"box":{"x":70,"y":899,"width":818,"height":9}},{"id":"a8e58f87-636b-4bc0-be5f-174b0c76b6a6","block_type":"box","text":"II-108","page_number":146,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"eb54cba4-1226-4225-a8d0-ee84fab6b31c","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":146,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"50661d07-4655-481b-b6f4-bc0e4cf29284","block_type":"box","text":"class of shareholders. The Plan provides, among other things, that: (i) the Board of Directors shall receive quarterly","page_number":147,"box":{"x":69,"y":45,"width":824,"height":11}},{"id":"a8328615-5df2-49ad-a8d4-a63e62e495b9","block_type":"box","text":"reports regarding the amounts expended under the Plan and the purposes for which such expenditures were made;","page_number":147,"box":{"x":69,"y":60,"width":821,"height":11}},{"id":"059af6dd-8041-40e1-806d-7f17e73be78d","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":147,"box":{"x":69,"y":75,"width":778,"height":11}},{"id":"c6ff8243-86a5-4af4-beba-4810250fc252","block_type":"box","text":"Directors, including the directors who are not “interested persons” of the Fund (as defined in the Investment","page_number":147,"box":{"x":70,"y":90,"width":773,"height":11}},{"id":"d8d08ea7-01f4-426b-92ea-035e240e28fb","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":147,"box":{"x":69,"y":105,"width":796,"height":11}},{"id":"77a05405-5fca-41f2-a105-9e529935391a","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":147,"box":{"x":69,"y":120,"width":837,"height":12}},{"id":"1ce50baa-72ef-469c-af22-b0980777a497","block_type":"box","text":"in accordance with Rule 12b-1 under the Investment Company Act; (iii) any material amendment thereto must be","page_number":147,"box":{"x":70,"y":135,"width":801,"height":11}},{"id":"5ad5e1a7-e428-49d9-9471-dc30f97809a8","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":147,"box":{"x":69,"y":150,"width":787,"height":12}},{"id":"e2a147d2-e4d1-49da-b7e7-509ec302e00e","block_type":"box","text":"purpose; (iv) any amendment to increase materially the costs which any class of shares may bear for distribution","page_number":147,"box":{"x":70,"y":166,"width":802,"height":11}},{"id":"c619b9df-6dfc-4797-b438-60afab3e9e9b","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":147,"box":{"x":69,"y":181,"width":826,"height":11}},{"id":"5e06abb2-f782-4aae-9f93-ec05b8bda85d","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":147,"box":{"x":69,"y":196,"width":836,"height":11}},{"id":"a72a9464-926f-4c87-94cd-f5de31d04b40","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":147,"box":{"x":69,"y":211,"width":836,"height":11}},{"id":"2a4a7587-5267-4474-a4c8-8da8429f844b","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":147,"box":{"x":68,"y":226,"width":792,"height":11}},{"id":"552c0b2e-f890-4b96-9306-82fac53dddb5","block_type":"box","text":"Directors. Rule 12b-1 further requires that each Fund preserve copies of each Plan and any report made pursuant to","page_number":147,"box":{"x":70,"y":241,"width":831,"height":11}},{"id":"9bdf12e1-628d-44e9-a469-1298b4abc350","block_type":"box","text":"such Plan for a period of not less than six years from the date of the Plan or such report, the first two years in an","page_number":147,"box":{"x":69,"y":256,"width":807,"height":11}},{"id":"ffbdc99c-5f8b-4916-91bb-1b2af83d9a70","block_type":"box","text":"easily accessible place.","page_number":147,"box":{"x":69,"y":272,"width":167,"height":11}},{"id":"ba85aaeb-dfbe-4484-8b9d-06dad1750d6a","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":147,"box":{"x":102,"y":294,"width":804,"height":11}},{"id":"e46e469d-4285-40b5-9ab3-a75676ddb986","block_type":"box","text":"Directors, or by vote of the holders of a majority of the shares of such class.","page_number":147,"box":{"x":70,"y":309,"width":542,"height":11}},{"id":"813ce496-b106-4d62-aab4-31398df93f14","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Part I of each Fund’s SAI for","page_number":147,"box":{"x":102,"y":332,"width":734,"height":11}},{"id":"273a7da7-3f34-44f9-9d43-17399879dc4d","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":147,"box":{"x":70,"y":347,"width":814,"height":11}},{"id":"d2c02ec1-9784-4cf3-ab13-0f6a24147a78","block_type":"box","text":"fiscal year.","page_number":147,"box":{"x":68,"y":362,"width":75,"height":11}},{"id":"2ae7e0a4-a308-42fa-9b82-bda4e9820dda","block_type":"box","text":"Limitations on the Payment of Deferred Sales Charges","page_number":147,"box":{"x":69,"y":392,"width":396,"height":11}},{"id":"524090fb-0b24-4b21-b597-095fcaf9deef","block_type":"box","text":"The maximum sales charge rule in the Conduct Rules of the Financial Industry Regulatory Authority (“FINRA”)","page_number":147,"box":{"x":101,"y":415,"width":777,"height":11}},{"id":"1341340c-cc30-48b7-a1d9-ad700a4a2ccf","block_type":"box","text":"imposes a limitation on certain asset-based sales charges such as the distribution fee borne by Class R Shares, and","page_number":147,"box":{"x":70,"y":430,"width":835,"height":11}},{"id":"0815df10-4508-47e9-af67-719e6bdd758c","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":147,"box":{"x":68,"y":445,"width":822,"height":11}},{"id":"7c7864ea-3729-4331-a44c-95b354938051","block_type":"box","text":"servicing fee. The maximum sales charge rule is applied separately to each class and limits the aggregate of","page_number":147,"box":{"x":69,"y":460,"width":778,"height":12}},{"id":"3985f7e2-48e2-46f1-a007-b949dd6443e1","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":147,"box":{"x":69,"y":475,"width":840,"height":12}},{"id":"a5cfe858-5aa8-4d69-9b14-367742cb28d5","block_type":"box","text":"Shares, computed separately (excluding shares issued pursuant to dividend reinvestments and exchanges), plus","page_number":147,"box":{"x":69,"y":491,"width":803,"height":11}},{"id":"632f9c1c-24db-463d-904e-987c39982a9a","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":147,"box":{"x":69,"y":506,"width":794,"height":11}},{"id":"24376222-c857-4c8f-99a8-5da6fb4ab389","block_type":"box","text":"unpaid balance being the maximum amount payable minus amounts received from the payment of the distribution fee","page_number":147,"box":{"x":69,"y":521,"width":839,"height":11}},{"id":"6733813b-8f18-4776-ba31-56610fa94b3a","block_type":"box","text":"and the CDSC). See “Information on Sales Charges and Distribution Related Expenses” in Part I of each Fund’s SAI","page_number":147,"box":{"x":69,"y":536,"width":824,"height":11}},{"id":"9a5ad396-84c6-4dbc-b42e-1d9013db874d","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":147,"box":{"x":68,"y":551,"width":839,"height":11}},{"id":"1d9d42cc-d5c8-4201-bc5e-06952f01be59","block_type":"box","text":"and Class R Shares of your Fund.","page_number":147,"box":{"x":69,"y":566,"width":236,"height":11}},{"id":"929e335e-b859-49a5-ac89-9c091f10f14b","block_type":"box","text":"Other Payments by the Fund","page_number":147,"box":{"x":69,"y":597,"width":206,"height":11}},{"id":"8d3af4fb-30de-48fc-8598-55a7db3b4789","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":147,"box":{"x":102,"y":619,"width":800,"height":11}},{"id":"69c569cb-4d08-44a3-84f2-abfdecf2e9fc","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":147,"box":{"x":68,"y":634,"width":816,"height":12}},{"id":"c52aa201-266e-4254-8911-104991858943","block_type":"box","text":"Service Organizations pursuant to which the Fund will pay a Service Organization for administrative, networking,","page_number":147,"box":{"x":69,"y":649,"width":794,"height":12}},{"id":"bbd4660e-9814-40b3-a8f3-61e2872f1075","block_type":"box","text":"recordkeeping, sub-transfer agency, sub-accounting and/or shareholder services. These non-Plan payments are","page_number":147,"box":{"x":69,"y":664,"width":792,"height":12}},{"id":"15bb24de-4871-490a-bc1c-259149b316fd","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":147,"box":{"x":68,"y":680,"width":841,"height":11}},{"id":"6eccef9f-98be-473f-a58b-843bd2ce3e0f","block_type":"box","text":"Organization or (2) a fixed dollar amount for each account serviced by a Service Organization. The aggregate amount","page_number":147,"box":{"x":69,"y":695,"width":831,"height":11}},{"id":"f525af1b-8867-429e-b7f0-ddf1b056bb03","block_type":"box","text":"of these payments may be substantial.","page_number":147,"box":{"x":69,"y":710,"width":276,"height":11}},{"id":"cb85ebfd-ae58-4176-bfa4-0fc5ca4030a8","block_type":"box","text":"Additional Payments by BlackRock","page_number":147,"box":{"x":68,"y":740,"width":256,"height":11}},{"id":"b60facdc-634b-46ad-bd25-57efac01f089","block_type":"box","text":"From time to time, BlackRock, BRIL and/or their affiliates (referred to in this section collectively as “BlackRock”)","page_number":147,"box":{"x":102,"y":763,"width":803,"height":11}},{"id":"0d6f62dd-4cec-4d98-b244-8cbc2adb7e33","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":147,"box":{"x":69,"y":778,"width":823,"height":11}},{"id":"990ae6b7-800c-4eaf-82a1-be26975daf96","block_type":"box","text":"its shareholders and/or for data provision or technology support. A Service Organization may perform these","page_number":147,"box":{"x":70,"y":793,"width":768,"height":11}},{"id":"ffc5fb9b-0e78-4216-9ffb-22093f8e5773","block_type":"box","text":"obligations itself or may arrange for a third party to perform them. These payments, which are not made pursuant to","page_number":147,"box":{"x":69,"y":808,"width":830,"height":11}},{"id":"a13381d1-1e3d-477f-b223-6909a492d1b5","block_type":"box","text":"a Plan or otherwise paid by a Fund, are referred to as “Additional Payments” herein.","page_number":147,"box":{"x":69,"y":823,"width":599,"height":11}},{"id":"d89689d9-c4c8-4d32-9b3e-19e22fd3c48f","block_type":"box","text":"Additional Payments are made from BlackRock’s own assets (which may come directly or indirectly from fees","page_number":147,"box":{"x":101,"y":846,"width":776,"height":11}},{"id":"42dcbe73-2ee4-48f6-974b-3e605d442119","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":147,"box":{"x":70,"y":861,"width":832,"height":11}},{"id":"5f946593-273b-4c44-8ca5-eb40da487cf6","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":147,"box":{"x":69,"y":876,"width":833,"height":11}},{"id":"a282649b-ea2d-4d0d-bfb7-32b8bc574771","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":147,"box":{"x":69,"y":891,"width":802,"height":11}},{"id":"444b48a2-faa2-4140-b20f-58a53011ddb9","block_type":"box","text":"Service Organizations are in addition to any distribution or shareholder servicing fees paid under any Plan of any","page_number":147,"box":{"x":69,"y":906,"width":802,"height":12}},{"id":"0f319687-f09b-4f46-9c88-6ef9c198c8f4","block_type":"box","text":"II-109","page_number":147,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"a31516a4-b1ba-413c-9d56-4527f951d042","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":147,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"42988bf0-42aa-419f-84e8-dfd34060790a","block_type":"box","text":"Fund, any sales charges, commissions or other concessions described in the Prospectuses or this SAI, and any","page_number":148,"box":{"x":70,"y":45,"width":796,"height":11}},{"id":"12e174f6-4c0c-4cf4-a69d-91a6ddcb47ea","block_type":"box","text":"administrative, networking, recordkeeping, sub-transfer agency or sub-accounting fees payable by a Fund. Pursuant to","page_number":148,"box":{"x":69,"y":60,"width":836,"height":11}},{"id":"36dd070a-262d-4b9f-8a96-9547a269dc41","block_type":"box","text":"applicable FINRA regulations, the details of certain of these payments, including the Service Organizations receiving","page_number":148,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"3f2d6759-da98-4e58-a39a-e6c3b3c3f066","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":148,"box":{"x":69,"y":90,"width":837,"height":11}},{"id":"eee7a937-be62-442b-9e16-3b5e0f7d73b0","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":148,"box":{"x":69,"y":105,"width":818,"height":11}},{"id":"ec4fa24d-93cb-4b4b-9c2d-966f2a1de7d8","block_type":"box","text":"BlackRock may pay out of its own assets.","page_number":148,"box":{"x":70,"y":120,"width":294,"height":11}},{"id":"94a9c0ed-e11a-4537-a367-3873d73524ec","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":148,"box":{"x":101,"y":143,"width":803,"height":11}},{"id":"221c0bd1-8c09-4a0d-b5b1-bd855313449e","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":148,"box":{"x":69,"y":158,"width":792,"height":11}},{"id":"7a933289-ffa2-4f82-9bff-f2c161ed4197","block_type":"box","text":"Customers of the Service Organization involved, or may be calculated on another basis.","page_number":148,"box":{"x":69,"y":173,"width":623,"height":11}},{"id":"b26e25b5-dd3b-42ab-9b40-86f5dc2e413a","block_type":"box","text":"BlackRock negotiates Additional Payments with each Service Organization on an individual basis. Additional","page_number":148,"box":{"x":102,"y":196,"width":765,"height":11}},{"id":"10f8d29c-ef41-4b56-8f5e-d02aeec80cc7","block_type":"box","text":"Payments may be different for different Service Organizations, and some Service Organizations may be paid pursuant","page_number":148,"box":{"x":69,"y":211,"width":841,"height":11}},{"id":"9d1fa494-f105-4620-a7ac-381fb6e50364","block_type":"box","text":"to more than one of the calculations described above. Not all Service Organizations receive Additional Payments.","page_number":148,"box":{"x":68,"y":226,"width":806,"height":11}},{"id":"cd0203a0-4632-475a-8654-38ddf7141b71","block_type":"box","text":"Sales-based payments primarily create incentives to make new sales of shares of the Fund, and asset-based","page_number":148,"box":{"x":69,"y":241,"width":776,"height":11}},{"id":"ec881c50-a69a-4e1e-9460-3b6721f437e0","block_type":"box","text":"payments primarily create incentives to retain previously sold shares of the Fund. The level of payments made to","page_number":148,"box":{"x":70,"y":256,"width":802,"height":11}},{"id":"30c311fe-b36f-402d-841d-ca95fefa8a66","block_type":"box","text":"these Service Organizations in any year will vary and may be limited to specific Funds or share classes. In certain","page_number":148,"box":{"x":68,"y":271,"width":811,"height":12}},{"id":"ddfa845f-5f05-40ee-a94a-0cecba4b133f","block_type":"box","text":"cases, these payments may be subject to certain minimum payment levels.","page_number":148,"box":{"x":69,"y":287,"width":538,"height":11}},{"id":"a167c802-4ac0-43a5-8a93-14c7880f05a1","block_type":"box","text":"The aggregate amount of Additional Payments made by BlackRock may be substantial and may be significant to","page_number":148,"box":{"x":101,"y":309,"width":795,"height":11}},{"id":"94b804bb-3791-4635-8c22-9dd3ef75ffbf","block_type":"box","text":"certain Service Organizations. The categories of Additional Payments listed below are not mutually exclusive. The","page_number":148,"box":{"x":69,"y":324,"width":807,"height":12}},{"id":"52cdfdf8-0d8a-44a8-8279-de293baabd67","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":148,"box":{"x":69,"y":339,"width":823,"height":12}},{"id":"d933a811-50be-4748-baf7-6d8212b95607","block_type":"box","text":"Additional Payments. Such payments may be different for different Service Organizations and for different types of","page_number":148,"box":{"x":68,"y":355,"width":819,"height":11}},{"id":"e8afa74e-9e9e-4a73-8a0d-868ddc5f2d94","block_type":"box","text":"Funds.","page_number":148,"box":{"x":70,"y":370,"width":44,"height":9}},{"id":"88bc01b5-e8c3-4c9b-8cd6-9812f7bfb997","block_type":"box","text":"A. Distribution and Marketing Suppor t","page_number":148,"box":{"x":101,"y":392,"width":270,"height":12}},{"id":"1e1f724f-6561-4d91-8a10-985a11724d8e","block_type":"box","text":"Additional Payments may be made by BlackRock for distribution and marketing support activities. These","page_number":148,"box":{"x":101,"y":415,"width":740,"height":11}},{"id":"c1fc1a19-7891-47d9-b060-edbe02733bca","block_type":"box","text":"payments may take the form of, among other things, “due diligence” payments for a Service Organization’s","page_number":148,"box":{"x":70,"y":430,"width":764,"height":11}},{"id":"0e163f9c-e108-41d4-abb2-9792f19cbf6f","block_type":"box","text":"examination of a Fund; payments for providing extra employee training and information relating to a Fund; fees for","page_number":148,"box":{"x":69,"y":445,"width":811,"height":12}},{"id":"14854dc6-5d58-4937-9490-d2308eaac9b4","block_type":"box","text":"access (in some cases on a preferential basis) to the Service Organization’s registered representatives,","page_number":148,"box":{"x":69,"y":460,"width":742,"height":12}},{"id":"e66c51ab-3f3d-4192-8446-7109c65b709f","block_type":"box","text":"salespersons or other personnel, including at sales meetings and conferences; “shelf space” payments for placing","page_number":148,"box":{"x":69,"y":475,"width":820,"height":12}},{"id":"b4754f94-2041-4523-94b5-302c626c0072","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":148,"box":{"x":68,"y":491,"width":829,"height":11}},{"id":"da660578-50b2-420f-b4de-93d5c6eb162f","block_type":"box","text":"may be a preferred or recommended list) of mutual funds available for purchase by its Customers or in certain sales","page_number":148,"box":{"x":69,"y":506,"width":830,"height":11}},{"id":"1015dd21-b713-4eeb-ab80-02329286a45d","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":148,"box":{"x":70,"y":521,"width":803,"height":11}},{"id":"43e61ea2-4126-4c09-bff5-527ad7efabda","block_type":"box","text":"include promotions in communications with the Service Organization’s Customers, registered representatives,","page_number":148,"box":{"x":70,"y":536,"width":783,"height":11}},{"id":"72f367dd-7c87-4f7a-b827-56d9aa1dcc50","block_type":"box","text":"salespersons and/or other personnel); payments for the sale of shares and/or the maintenance of share balances;","page_number":148,"box":{"x":69,"y":551,"width":823,"height":11}},{"id":"7ddf0ccf-4ba8-4776-b80d-630386e83709","block_type":"box","text":"transaction fees (also referred to as “ticket charges”); and payments for infrastructure support. These payments","page_number":148,"box":{"x":68,"y":566,"width":805,"height":11}},{"id":"0d2425a0-1a86-42fb-83e2-f50727a46b70","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":148,"box":{"x":69,"y":581,"width":828,"height":12}},{"id":"6f56959b-7fc7-4a9b-921a-1cd8ab99eba9","block_type":"box","text":"of the assets attributable to that Service Organization invested in a Fund.","page_number":148,"box":{"x":69,"y":596,"width":523,"height":12}},{"id":"71cb2f2a-8de2-4549-bccb-10749950d401","block_type":"box","text":"B. Shareholder Services","page_number":148,"box":{"x":102,"y":619,"width":172,"height":9}},{"id":"5d3613af-e5fd-457c-a54f-1179e589d496","block_type":"box","text":"Many Fund shares are owned or held by Service Organizations for the benefit of their Customers. In these","page_number":148,"box":{"x":102,"y":642,"width":754,"height":11}},{"id":"5d599c82-62a7-4bfe-8a45-2ea6b40587c7","block_type":"box","text":"situations, a Fund may not maintain accounts in the name of the Customers and Service Organizations may perform","page_number":148,"box":{"x":69,"y":657,"width":830,"height":11}},{"id":"165e7a95-b188-481e-bafd-a75b3b290a82","block_type":"box","text":"some of the functions for these Customers’ accounts that the Transfer Agent would have performed if the accounts","page_number":148,"box":{"x":69,"y":672,"width":823,"height":11}},{"id":"d1166a0e-7963-487a-a316-1d0ae7fb5c7c","block_type":"box","text":"had been in the Customers’ names on the Fund’s books. Such services include sub-accounting services, shareholder","page_number":148,"box":{"x":69,"y":687,"width":839,"height":11}},{"id":"b29db39e-135a-4ade-b3f1-b100d8ce5508","block_type":"box","text":"servicing and transaction processing services and are sometimes referred to as “recordkeeping,” “sub-transfer","page_number":148,"box":{"x":69,"y":702,"width":796,"height":12}},{"id":"bd428fd4-73e4-4b43-989e-c6a1a6106931","block_type":"box","text":"agency,” “sub-accounting,” “networking” and/or “administrative” services. Additional Payments may exceed amounts","page_number":148,"box":{"x":69,"y":718,"width":837,"height":11}},{"id":"f5429870-9fc9-41ea-938e-2c3b5d1ac229","block_type":"box","text":"that would be earned on these assets by the Transfer Agent for the performance of these or similar services. These","page_number":148,"box":{"x":68,"y":732,"width":828,"height":12}},{"id":"bb99932f-edbe-4660-872c-54350656fba4","block_type":"box","text":"Additional Payments made by BlackRock are in addition to any transfer agent, shareholder servicing and transaction","page_number":148,"box":{"x":68,"y":748,"width":827,"height":11}},{"id":"7071d590-b336-4740-8f80-6551f40a3116","block_type":"box","text":"processing fees paid by a Fund, as applicable.","page_number":148,"box":{"x":70,"y":763,"width":328,"height":11}},{"id":"567e273c-f55a-4ee1-9ea4-558702822311","block_type":"box","text":"C. Data Provision and Technology Suppor t","page_number":148,"box":{"x":102,"y":786,"width":299,"height":11}},{"id":"a23ecae9-a3e8-4164-8b1e-8889d9f3c3f5","block_type":"box","text":"BlackRock may make Additional Payments to Service Organizations for the provision of certain analytical or other","page_number":148,"box":{"x":102,"y":808,"width":805,"height":11}},{"id":"56c68ade-0c03-4903-b2f8-0806fccc9880","block_type":"box","text":"data services relating to the Funds, such as statistical information regarding sales of the Funds, or technology","page_number":148,"box":{"x":69,"y":823,"width":788,"height":12}},{"id":"8cc896d3-08a6-4f46-8ead-386675d98b0e","block_type":"box","text":"support. Such Additional Payments are generally made as a fixed dollar amount, and not based on assets or sales.","page_number":148,"box":{"x":69,"y":838,"width":821,"height":12}},{"id":"b4fae221-5a50-4789-88c7-8ec323efab24","block_type":"box","text":"D. Service Organizations Receiving Additional Payments","page_number":148,"box":{"x":102,"y":861,"width":397,"height":11}},{"id":"9cf47f44-d453-45dd-a6b2-bf3e41dc4ae2","block_type":"box","text":"As of the date of this SAI, the Service Organizations listed below, and, in some cases, certain of the Service","page_number":148,"box":{"x":101,"y":884,"width":774,"height":11}},{"id":"1e4ecb25-feef-45b3-85f5-6f4aa37bfe0e","block_type":"box","text":"Organization’s affiliates, may be receiving one or more types of Additional Payments. This list may change over time,","page_number":148,"box":{"x":69,"y":899,"width":831,"height":11}},{"id":"5d6e0e37-e004-4a9e-8a24-1d26a048d0c8","block_type":"box","text":"II-110","page_number":148,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"053da02d-1968-4817-bc6d-daf3e1122a26","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":148,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4952bd7d-d542-489f-a308-800a005b108e","block_type":"box","text":"and BlackRock may pay Service Organizations or their affiliates additional types of Additional Payments in the future.","page_number":149,"box":{"x":69,"y":45,"width":832,"height":11}},{"id":"029f7e99-921a-493f-b0b6-7d5e96d65ffd","block_type":"box","text":"Please contact your Service Organization to determine whether it or its affiliate currently may be receiving such","page_number":149,"box":{"x":69,"y":60,"width":791,"height":11}},{"id":"b09e21dc-b114-4df2-8cfd-19e1cca4d94a","block_type":"box","text":"payments and to obtain further information regarding any such payments.","page_number":149,"box":{"x":70,"y":75,"width":523,"height":11}},{"id":"037a81e0-88ab-4cc8-8647-2971a8ee5448","block_type":"box","text":"&Partners","page_number":149,"box":{"x":69,"y":106,"width":71,"height":9}},{"id":"ba821a7e-ccdf-4ca7-9045-d0de39fb495d","block_type":"box","text":"AccuTech Systems Corporation","page_number":149,"box":{"x":68,"y":127,"width":219,"height":11}},{"id":"de3ac4aa-be36-470b-b712-9ee912d24d51","block_type":"box","text":"ADP Broker-Dealer, Inc.","page_number":149,"box":{"x":68,"y":147,"width":164,"height":10}},{"id":"6f56951c-662b-4afb-9b8a-cd25a80d9e50","block_type":"box","text":"Advisor Credit Exchange, LLC","page_number":149,"box":{"x":68,"y":167,"width":207,"height":11}},{"id":"129354a1-12ca-412d-a1ec-ec6f8330a84c","block_type":"box","text":"Advisor Group, Inc.","page_number":149,"box":{"x":68,"y":187,"width":133,"height":11}},{"id":"17613e5d-f79b-4043-bac7-a536879ed200","block_type":"box","text":"AE Wealth Management, LLC","page_number":149,"box":{"x":68,"y":207,"width":205,"height":11}},{"id":"f7a6f60a-d3d6-4103-ba55-eae199f6f362","block_type":"box","text":"Alight Solutions LLC","page_number":149,"box":{"x":68,"y":227,"width":142,"height":12}},{"id":"71c910e9-f08a-4af2-b4a8-a836434a4416","block_type":"box","text":"Allianz Life Financial Services, LLC","page_number":149,"box":{"x":68,"y":247,"width":246,"height":11}},{"id":"9e0dc5be-b54d-412f-92f7-38cfbd7efc75","block_type":"box","text":"Allianz Life Insurance Company of New York","page_number":149,"box":{"x":68,"y":268,"width":310,"height":11}},{"id":"ffb157f4-482c-4755-964a-05060db0dcac","block_type":"box","text":"Allianz Life Insurance Company of North America","page_number":149,"box":{"x":68,"y":288,"width":346,"height":11}},{"id":"5d965033-619c-4673-aa83-7af69b959b32","block_type":"box","text":"Altruist Financial LLC","page_number":149,"box":{"x":68,"y":308,"width":149,"height":9}},{"id":"a91d23f6-f4f9-490b-9863-7ab89b6d142f","block_type":"box","text":"American Enterprise Investment Services, Inc.","page_number":149,"box":{"x":68,"y":328,"width":328,"height":11}},{"id":"d645d61e-89b1-46a4-bbb9-ed4ea1551c3e","block_type":"box","text":"American General Life Insurance Company","page_number":149,"box":{"x":68,"y":348,"width":302,"height":11}},{"id":"ee7ae4cf-b51e-48ab-8801-467808878832","block_type":"box","text":"American United Life Insurance Company","page_number":149,"box":{"x":68,"y":368,"width":293,"height":12}},{"id":"b65836ee-a281-4be9-8997-21da4f4dcecb","block_type":"box","text":"Annuity Investors Life Insurance Company","page_number":149,"box":{"x":68,"y":389,"width":298,"height":11}},{"id":"a16191f3-5054-4a7a-8ea1-627652d7192c","block_type":"box","text":"Anthem Securities LLC","page_number":149,"box":{"x":68,"y":409,"width":161,"height":9}},{"id":"7742e5e5-171a-49a8-9d67-84e3551f417d","block_type":"box","text":"Argent Institutional Trust Company","page_number":149,"box":{"x":68,"y":429,"width":246,"height":11}},{"id":"5d03aa5c-48b0-4590-bc5f-6d4d97014d79","block_type":"box","text":"Ascensus Broker Dealer Services, Inc.","page_number":149,"box":{"x":68,"y":449,"width":272,"height":11}},{"id":"4b89a75a-e4b1-48dc-920d-167d66f8b876","block_type":"box","text":"Ascensus, Inc.","page_number":149,"box":{"x":68,"y":469,"width":103,"height":11}},{"id":"d64a39db-4d2e-4334-abd1-7e98720f1fb2","block_type":"box","text":"Atomic Brokerage LLC","page_number":149,"box":{"x":68,"y":489,"width":156,"height":12}},{"id":"2748cc5f-fc55-4bd8-86c3-9e71f53a8533","block_type":"box","text":"Avantax Investment Services, LLC","page_number":149,"box":{"x":68,"y":510,"width":241,"height":10}},{"id":"e0f2cdeb-7e4b-42fd-8a3e-5234e6355eec","block_type":"box","text":"Bancroft Capital LLC","page_number":149,"box":{"x":70,"y":530,"width":143,"height":11}},{"id":"56e87e8f-5226-4e01-a416-5bc6d7d0de35","block_type":"box","text":"Bank of America, N.A.","page_number":149,"box":{"x":70,"y":550,"width":153,"height":10}},{"id":"a76561df-9021-4452-8119-f0267e94f436","block_type":"box","text":"Bank of New York Mellon","page_number":149,"box":{"x":70,"y":570,"width":174,"height":9}},{"id":"ae468e30-eb81-42d6-a094-016afcfa455e","block_type":"box","text":"Barclays Capital Inc.","page_number":149,"box":{"x":70,"y":590,"width":142,"height":11}},{"id":"c789ee4f-b983-46d8-95c3-bb161eea6353","block_type":"box","text":"Benefit Plans Administrative Services, Inc.","page_number":149,"box":{"x":70,"y":610,"width":299,"height":11}},{"id":"c3501fca-7e92-410c-be36-519af616da99","block_type":"box","text":"Benefit Trust Company","page_number":149,"box":{"x":70,"y":630,"width":160,"height":12}},{"id":"7ab420aa-f5ff-4d59-9f6d-b59702d9bdfb","block_type":"box","text":"Beta Capital Securities LLC","page_number":149,"box":{"x":70,"y":651,"width":192,"height":11}},{"id":"3312316c-bab7-42bc-b559-37725579f9f2","block_type":"box","text":"bfinance US Ltd.","page_number":149,"box":{"x":69,"y":671,"width":116,"height":9}},{"id":"4cec6c8b-c4e7-4413-9dfe-09114d097215","block_type":"box","text":"BlackRock Advisors, LLC","page_number":149,"box":{"x":70,"y":691,"width":172,"height":10}},{"id":"ac5a0890-460c-4ce2-93b8-0787720b3978","block_type":"box","text":"BMO Capital Markets Corp.","page_number":149,"box":{"x":70,"y":711,"width":191,"height":11}},{"id":"c50044eb-2a8e-431d-973f-7bca36aadedf","block_type":"box","text":"BNP Paribas","page_number":149,"box":{"x":70,"y":731,"width":86,"height":9}},{"id":"8780d65c-2abd-4764-a3e1-138366378215","block_type":"box","text":"BNP Paribas Investment Partners UK Limited","page_number":149,"box":{"x":70,"y":752,"width":318,"height":8}},{"id":"254c5465-9022-4bf6-926a-d5684ea16993","block_type":"box","text":"BNY Mellon, N.A.","page_number":149,"box":{"x":70,"y":772,"width":119,"height":10}},{"id":"42174e73-7b27-43c6-8891-88dfd51346ff","block_type":"box","text":"BofA Securities, Inc.","page_number":149,"box":{"x":70,"y":792,"width":141,"height":10}},{"id":"090c90f2-d28a-4850-a7b3-b6883648c3c7","block_type":"box","text":"BOKF, N.A.","page_number":149,"box":{"x":70,"y":812,"width":74,"height":10}},{"id":"119b8b7d-4c38-4448-aa38-837f6ac4c8a4","block_type":"box","text":"Brighthouse Life Insurance Company","page_number":149,"box":{"x":70,"y":832,"width":259,"height":11}},{"id":"384b5ec0-f08c-4f7d-8b63-8ee8b220023b","block_type":"box","text":"Brighthouse Life Insurance Company of NY","page_number":149,"box":{"x":70,"y":852,"width":302,"height":11}},{"id":"08b48ae0-6fc8-45a8-82dd-013043eff2ec","block_type":"box","text":"Broadridge Business Process Outsourcing, LLC","page_number":149,"box":{"x":70,"y":872,"width":333,"height":12}},{"id":"f33f48ff-bf66-4556-86b1-a168108b25a9","block_type":"box","text":"Brown Brothers Harriman & Co.","page_number":149,"box":{"x":70,"y":893,"width":222,"height":9}},{"id":"bfa369cc-10fb-4e8a-9aca-8b01b2d3bbea","block_type":"box","text":"Cabrera Capital Markets, LLC","page_number":149,"box":{"x":69,"y":913,"width":208,"height":11}},{"id":"58eefb2a-3046-48fb-9a0b-dee85654a171","block_type":"box","text":"Capital One, N.A.","page_number":149,"box":{"x":509,"y":106,"width":120,"height":11}},{"id":"94ce75f6-c1c0-474b-87de-18d5e119c818","block_type":"box","text":"Cetera Advisor Networks LLC","page_number":149,"box":{"x":509,"y":127,"width":204,"height":9}},{"id":"5a67730c-662f-4949-83b1-54ca543dfec8","block_type":"box","text":"Cetera Advisors LLC","page_number":149,"box":{"x":509,"y":147,"width":142,"height":9}},{"id":"5ca28d69-78d9-4497-8657-f6830f137e8d","block_type":"box","text":"Cetera Financial Group","page_number":149,"box":{"x":509,"y":167,"width":161,"height":11}},{"id":"026c10f0-6890-4a9f-9537-0ade06da9eba","block_type":"box","text":"Cetera Financial Specialists LLC","page_number":149,"box":{"x":509,"y":187,"width":228,"height":11}},{"id":"7607e94e-d55d-4b52-ae86-36a8e64b797d","block_type":"box","text":"Cetera Investment Services LLC","page_number":149,"box":{"x":509,"y":207,"width":227,"height":9}},{"id":"e3f29493-81e6-4129-8c9e-e6d68b0b215b","block_type":"box","text":"CF Secured, LLC","page_number":149,"box":{"x":509,"y":227,"width":116,"height":11}},{"id":"0bfedd50-9a94-4241-913a-c875a5601547","block_type":"box","text":"Charles Schwab & Co., Inc.","page_number":149,"box":{"x":509,"y":248,"width":192,"height":10}},{"id":"bd6eb8fb-f9cf-4fd1-b8bc-a00bfaeacb0e","block_type":"box","text":"Charles Schwab Trust Bank","page_number":149,"box":{"x":509,"y":268,"width":195,"height":9}},{"id":"723c92ab-2194-4d55-969f-07c5193d57c9","block_type":"box","text":"Chicago Mercantile Exchange Inc.","page_number":149,"box":{"x":509,"y":288,"width":237,"height":11}},{"id":"ffe2c17d-5644-449b-a000-14723cd6ed32","block_type":"box","text":"CIM Investment Management, Inc.","page_number":149,"box":{"x":509,"y":308,"width":243,"height":11}},{"id":"c2e4fb33-f042-4cb2-8a99-bbe7b90ce400","block_type":"box","text":"Citco Securities, LLC","page_number":149,"box":{"x":509,"y":328,"width":147,"height":11}},{"id":"7a81d6eb-ff15-4e30-8c54-b425a5f436ae","block_type":"box","text":"CitiBank, National Association","page_number":149,"box":{"x":509,"y":348,"width":213,"height":11}},{"id":"e7425d98-ba64-49de-9eba-2465b1bdbe4b","block_type":"box","text":"Citigroup Global Markets, Inc.","page_number":149,"box":{"x":509,"y":369,"width":210,"height":11}},{"id":"d34712b9-bfe9-4799-9be7-a0855ef5036c","block_type":"box","text":"Citizens Bank","page_number":149,"box":{"x":509,"y":389,"width":96,"height":9}},{"id":"572778bf-ac64-466c-8014-aaaed7f6b6b6","block_type":"box","text":"Citizens Business Bank","page_number":149,"box":{"x":509,"y":409,"width":167,"height":9}},{"id":"cd3c484e-491b-4a82-8bc4-ebe119592da5","block_type":"box","text":"CME Shareholder Servicing LLC","page_number":149,"box":{"x":509,"y":429,"width":224,"height":11}},{"id":"b5553d5a-2d8e-4c61-b1fe-35874726edab","block_type":"box","text":"CMFG Life Insurance Company","page_number":149,"box":{"x":509,"y":449,"width":217,"height":11}},{"id":"8c434d53-9a3c-4f4d-9d51-9724aa58d6da","block_type":"box","text":"Comerica Bank","page_number":149,"box":{"x":509,"y":469,"width":107,"height":9}},{"id":"900cb783-f649-4a2b-a646-8f9a482e5f68","block_type":"box","text":"Commonwealth Financial Network","page_number":149,"box":{"x":509,"y":489,"width":239,"height":9}},{"id":"06094e8c-876e-4716-86ce-61db67a14f2c","block_type":"box","text":"Computershare Trust Company","page_number":149,"box":{"x":509,"y":510,"width":220,"height":11}},{"id":"2ee79dca-ba66-4117-ba53-2766bda04df6","block_type":"box","text":"Conduent HR Services, LLC","page_number":149,"box":{"x":509,"y":530,"width":196,"height":10}},{"id":"1f11d7e7-dcf9-4597-954a-fe345d76d887","block_type":"box","text":"Delaware Life Insurance Company","page_number":149,"box":{"x":510,"y":550,"width":240,"height":11}},{"id":"47364fd3-2682-4256-afbf-f77f44bc6055","block_type":"box","text":"Delaware Trust Company","page_number":149,"box":{"x":510,"y":570,"width":176,"height":11}},{"id":"efb4af11-3178-4a41-9b61-1ae3e9ea274f","block_type":"box","text":"Deutsche Bank AG","page_number":149,"box":{"x":510,"y":590,"width":131,"height":9}},{"id":"9547a362-33bf-4894-812d-82a98fb7e4f4","block_type":"box","text":"Deutsche Bank Trust Company Americas","page_number":149,"box":{"x":510,"y":610,"width":288,"height":11}},{"id":"3eccb1a7-51ce-4b91-8db8-0bd9a0e26bc2","block_type":"box","text":"Digital Retirement Solutions, Inc.","page_number":149,"box":{"x":510,"y":631,"width":232,"height":11}},{"id":"0f59099a-19cb-49ef-9ee3-bd9f208315ca","block_type":"box","text":"Dunham & Associates Investment Counsel, Inc.","page_number":149,"box":{"x":510,"y":651,"width":337,"height":10}},{"id":"8429c239-8d13-493f-b7e3-3e9b881092d3","block_type":"box","text":"Dynasty Financial Partners LLC","page_number":149,"box":{"x":510,"y":671,"width":218,"height":11}},{"id":"50748526-672d-47e6-a6eb-7499ba488af3","block_type":"box","text":"Edward D. Jones & Co., L.P.","page_number":149,"box":{"x":510,"y":691,"width":196,"height":10}},{"id":"fd735292-0465-41b3-8a80-93a94b96d27f","block_type":"box","text":"Empire Fidelity Investments Life Insurance Company","page_number":149,"box":{"x":510,"y":711,"width":370,"height":11}},{"id":"ec7c73f7-a25e-423c-b831-a7754686bf1e","block_type":"box","text":"Empower Annuity Insurance Company of America","page_number":149,"box":{"x":510,"y":731,"width":345,"height":11}},{"id":"88300c14-3dc7-427f-bedb-be7ad63f3d1a","block_type":"box","text":"Empower Financial Services, Inc.","page_number":149,"box":{"x":510,"y":752,"width":232,"height":10}},{"id":"05abe657-483b-40b9-93a8-a4d1b5a4c3de","block_type":"box","text":"Empower Life & Annuity Insurance Company of New","page_number":149,"box":{"x":510,"y":772,"width":365,"height":11}},{"id":"ee7f6e89-6fd7-4667-ae4e-891e3408e3b4","block_type":"box","text":"York","page_number":149,"box":{"x":509,"y":787,"width":29,"height":9}},{"id":"d467c846-3d99-4d84-bd66-b56407804c83","block_type":"box","text":"Empower Plan Services, LLC","page_number":149,"box":{"x":510,"y":807,"width":201,"height":11}},{"id":"475f1d49-5bf0-410b-82be-80864b4c5be1","block_type":"box","text":"Envestnet Asset Management, Inc.","page_number":149,"box":{"x":510,"y":827,"width":246,"height":11}},{"id":"cf7f401e-c48a-4987-b70e-8d88f68ecbc1","block_type":"box","text":"Equitable Advisors, LLC","page_number":149,"box":{"x":510,"y":847,"width":165,"height":11}},{"id":"4f6cef5f-03d6-453d-8595-3f4e6ab1c43f","block_type":"box","text":"Equitable Life Insurance Company","page_number":149,"box":{"x":510,"y":867,"width":240,"height":11}},{"id":"29bacf07-7192-463c-907f-d600b9686266","block_type":"box","text":"E*trade Savings Bank","page_number":149,"box":{"x":510,"y":888,"width":155,"height":11}},{"id":"41edf603-1ed6-4e47-bfda-74a0bfc34b95","block_type":"box","text":"Federal Deposit Insurance Corporation","page_number":149,"box":{"x":510,"y":908,"width":271,"height":11}},{"id":"7a698bcd-0e7a-4ba9-b006-1dddd090c11a","block_type":"box","text":"II-111","page_number":149,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"e485c769-5bc7-42d9-a803-6efcee635362","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":149,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7d5a3123-4466-401b-bd03-43ce6903116c","block_type":"box","text":"Fidelity Brokerage Services LLC","page_number":150,"box":{"x":70,"y":45,"width":222,"height":11}},{"id":"799955c6-2f7a-4321-8581-e1fe98b146a8","block_type":"box","text":"Fidelity Investments Institutional Operations Company,","page_number":150,"box":{"x":70,"y":65,"width":384,"height":11}},{"id":"0c13677c-791e-4bf1-8b86-c2d3ccfd7e64","block_type":"box","text":"Inc.","page_number":150,"box":{"x":70,"y":80,"width":23,"height":9}},{"id":"232a76c3-ddf3-4c66-9c8e-ab00efdbbe11","block_type":"box","text":"Fidelity Investments Life Insurance Company","page_number":150,"box":{"x":70,"y":100,"width":316,"height":11}},{"id":"5b087e68-fd6c-4784-8152-5375607443ca","block_type":"box","text":"Fifth Third Securities, Inc.","page_number":150,"box":{"x":70,"y":120,"width":179,"height":11}},{"id":"5b58e228-2861-4e83-b995-9501b89d361f","block_type":"box","text":"First Allied Securities, Inc.","page_number":150,"box":{"x":70,"y":140,"width":182,"height":11}},{"id":"e891747d-5f96-46c5-893b-a1d4a032e949","block_type":"box","text":"First Command Financial Planning, Inc.","page_number":150,"box":{"x":70,"y":161,"width":273,"height":11}},{"id":"2e854569-328f-4499-a8c3-803f51f88992","block_type":"box","text":"First Hawaiian Bank","page_number":150,"box":{"x":70,"y":181,"width":139,"height":9}},{"id":"668710e1-ef4a-4d54-95f2-5bbfba1e8ff7","block_type":"box","text":"First Republic Bank","page_number":150,"box":{"x":70,"y":201,"width":135,"height":11}},{"id":"c107f4a0-4e5b-409c-bafd-ad239b98c58c","block_type":"box","text":"First Security Benefit Life Insurance and Annuity","page_number":150,"box":{"x":70,"y":221,"width":339,"height":11}},{"id":"8a29f0dd-be12-47c4-a720-12809336f511","block_type":"box","text":"Company of New York","page_number":150,"box":{"x":69,"y":236,"width":153,"height":11}},{"id":"eb65cf71-ddbf-4dd8-ad12-1dfb05b920af","block_type":"box","text":"First Symetra National Life Insurance Company of New","page_number":150,"box":{"x":70,"y":256,"width":385,"height":11}},{"id":"2bf2f4f6-8e2f-420c-8bf9-3e54ab2ab992","block_type":"box","text":"York","page_number":150,"box":{"x":68,"y":272,"width":30,"height":8}},{"id":"5d893b54-dde3-46d0-9ffa-490fd0e19335","block_type":"box","text":"First-Citizens Bank & Trust Company","page_number":150,"box":{"x":70,"y":292,"width":257,"height":11}},{"id":"d02d0b48-09a6-46a1-9cf8-1756d110bf53","block_type":"box","text":"FIS Brokerage & Securities Services LLC","page_number":150,"box":{"x":70,"y":312,"width":287,"height":11}},{"id":"75ed9b20-7d53-479e-b548-013484434e78","block_type":"box","text":"FNEX Capital, LLC","page_number":150,"box":{"x":70,"y":332,"width":125,"height":11}},{"id":"9692d1c2-0c35-40cc-9974-cedfb32839b4","block_type":"box","text":"Forethought Life Insurance Company","page_number":150,"box":{"x":70,"y":352,"width":259,"height":11}},{"id":"9b514145-515c-4913-a1fd-d3860d218d06","block_type":"box","text":"FSC Securities Corporation","page_number":150,"box":{"x":70,"y":372,"width":189,"height":11}},{"id":"54eacdb0-9582-4dc2-bdeb-8f213def8a98","block_type":"box","text":"Genworth Life and Annuity Insurance Company","page_number":150,"box":{"x":69,"y":392,"width":331,"height":12}},{"id":"4111dab1-896f-49db-82a9-c745671277e0","block_type":"box","text":"Genworth Life Insurance Company of New York","page_number":150,"box":{"x":69,"y":412,"width":332,"height":12}},{"id":"25e4ef63-5eda-4654-929d-3322b2dde28e","block_type":"box","text":"Global Atlantic Distributors, LLC","page_number":150,"box":{"x":69,"y":433,"width":225,"height":10}},{"id":"5fe31eb3-a45b-4b12-b12e-24be3d14c1af","block_type":"box","text":"Goldman Sachs & Co.","page_number":150,"box":{"x":69,"y":453,"width":155,"height":9}},{"id":"d7299bb5-73c4-495e-ac11-4290d146b558","block_type":"box","text":"Great Pacific Securities, LLC","page_number":150,"box":{"x":69,"y":473,"width":201,"height":10}},{"id":"1f47d61f-61a0-4739-b6e1-154a846588ef","block_type":"box","text":"Guardian Insurance & Annuity Co., Inc.","page_number":150,"box":{"x":69,"y":493,"width":273,"height":11}},{"id":"decf1263-682e-4732-b4b3-5dbc6931ddb8","block_type":"box","text":"Hancock Whitney Bank","page_number":150,"box":{"x":70,"y":514,"width":161,"height":10}},{"id":"e31f4751-ac2c-492a-a7cb-a227b88e2a3b","block_type":"box","text":"Hartford Funds Management Company","page_number":150,"box":{"x":70,"y":533,"width":274,"height":12}},{"id":"d8c0d998-9ebe-4462-ad4a-b305eab9e3ef","block_type":"box","text":"Hartford Securities Distribution Company, Inc.","page_number":150,"box":{"x":70,"y":554,"width":324,"height":11}},{"id":"a0a0fb6e-238e-4d53-8ead-f24b7d7e2e99","block_type":"box","text":"Hazeltree Fund Services, Inc.","page_number":150,"box":{"x":70,"y":574,"width":206,"height":10}},{"id":"2470e9fc-eaca-4a2d-858d-e6bed142d809","block_type":"box","text":"Hightower Securities, Inc.","page_number":150,"box":{"x":70,"y":594,"width":179,"height":11}},{"id":"a2782e75-13e2-4014-b2ac-5a87d089a060","block_type":"box","text":"Hilltop Securities Inc.","page_number":150,"box":{"x":70,"y":614,"width":149,"height":11}},{"id":"b657cd9c-01fe-4a11-a874-a2c2d1ff29c6","block_type":"box","text":"HSBC Bank USA, N.A.","page_number":150,"box":{"x":70,"y":634,"width":153,"height":11}},{"id":"fa1ae198-2546-41c3-88bd-57d27a68908f","block_type":"box","text":"Huntington Securities, Inc.","page_number":150,"box":{"x":70,"y":655,"width":186,"height":11}},{"id":"b266953e-b061-4938-bdcc-85731783d556","block_type":"box","text":"Institutional Cash Distributors, LLC","page_number":150,"box":{"x":70,"y":675,"width":247,"height":10}},{"id":"e710d4f8-8b12-40b0-91f7-c07a4589ee41","block_type":"box","text":"Integrity Life Insurance Company","page_number":150,"box":{"x":70,"y":695,"width":230,"height":11}},{"id":"a8447861-6ce0-4271-b095-2cb87313f9c5","block_type":"box","text":"Interactive Brokers, LLC","page_number":150,"box":{"x":70,"y":715,"width":168,"height":10}},{"id":"8fb038e6-f908-460c-bd15-de73378ae0d0","block_type":"box","text":"Investment Trust of California","page_number":150,"box":{"x":70,"y":735,"width":208,"height":9}},{"id":"2bcddc5a-2f5f-480b-8a9d-0885c3d03259","block_type":"box","text":"J.P. Morgan Institutional Investments Inc.","page_number":150,"box":{"x":69,"y":755,"width":292,"height":11}},{"id":"1c7bac53-6b47-4f20-8d4a-b3e222a3b1c6","block_type":"box","text":"J.P. Morgan Securities LLC","page_number":150,"box":{"x":69,"y":775,"width":188,"height":12}},{"id":"60225ab9-182e-48be-8346-688065973695","block_type":"box","text":"Jefferies LLC","page_number":150,"box":{"x":69,"y":795,"width":91,"height":9}},{"id":"81cecc48-1bf7-4780-be76-df5d7e9af891","block_type":"box","text":"Jefferson National Life Insurance Company","page_number":150,"box":{"x":69,"y":816,"width":305,"height":11}},{"id":"2a9ed8ff-4b5b-4e3d-a2f5-603a040fda1c","block_type":"box","text":"Jefferson National Life Insurance Company of New York","page_number":150,"box":{"x":69,"y":836,"width":394,"height":11}},{"id":"2067ae8a-7909-4b55-a567-b8fa5b0396f5","block_type":"box","text":"John Hancock Life Insurance Company (U.S.A.)","page_number":150,"box":{"x":69,"y":856,"width":332,"height":11}},{"id":"5a54a834-0578-4ca0-b93c-80da338aec79","block_type":"box","text":"John Hancock Life Insurance Company of New York","page_number":150,"box":{"x":69,"y":876,"width":362,"height":11}},{"id":"a3920ec4-922e-480b-8f98-29de1f040b74","block_type":"box","text":"John Hancock Trust Company","page_number":150,"box":{"x":69,"y":896,"width":209,"height":11}},{"id":"6ea26c54-873d-422a-9593-c603c0d839f2","block_type":"box","text":"JPMorgan Chase Bank, N.A.","page_number":150,"box":{"x":509,"y":45,"width":197,"height":11}},{"id":"ead3a763-865f-4319-b192-84b91bdc9677","block_type":"box","text":"Kestra Investment Services, LLC","page_number":150,"box":{"x":510,"y":65,"width":231,"height":10}},{"id":"523a597d-969f-4d09-8222-61fe7314109e","block_type":"box","text":"Lincoln Financial Advisors Corporation","page_number":150,"box":{"x":510,"y":85,"width":267,"height":11}},{"id":"e0dee0da-b1fb-4001-9f80-51637a3e8489","block_type":"box","text":"Lincoln Financial Securities Corporation","page_number":150,"box":{"x":510,"y":105,"width":278,"height":11}},{"id":"67a55e70-b844-408f-aa6c-83fc768c62e8","block_type":"box","text":"Lincoln Life & Annuity Company of New York","page_number":150,"box":{"x":510,"y":125,"width":310,"height":11}},{"id":"b7c9cb11-e803-4550-8719-0098865f6d9d","block_type":"box","text":"Lincoln National Life Insurance Company","page_number":150,"box":{"x":510,"y":145,"width":288,"height":12}},{"id":"9446cd70-0431-4193-afab-83d07fdd3104","block_type":"box","text":"Lincoln Retirement Services LLC","page_number":150,"box":{"x":510,"y":166,"width":229,"height":9}},{"id":"b79262bc-bb4c-49d0-b466-47b3bf2ecc24","block_type":"box","text":"Lombard International Life Assurance Company","page_number":150,"box":{"x":510,"y":186,"width":336,"height":11}},{"id":"f4dd59e4-8ca6-4489-9bae-b08d07d11a51","block_type":"box","text":"LPL Financial LLC","page_number":150,"box":{"x":510,"y":206,"width":122,"height":9}},{"id":"ad161a36-9348-492e-8865-6e8557cf1bf3","block_type":"box","text":"M&T Securities Inc.","page_number":150,"box":{"x":510,"y":226,"width":136,"height":9}},{"id":"6dc29c58-cd78-4e9c-b875-da163a5bf960","block_type":"box","text":"Manufacturers and Traders Trust Company","page_number":150,"box":{"x":510,"y":246,"width":302,"height":11}},{"id":"0a6f74ad-5e1a-4809-a1d6-8d14b70254dc","block_type":"box","text":"Massachusetts Mutual Life Insurance Company","page_number":150,"box":{"x":510,"y":266,"width":338,"height":12}},{"id":"a1be4b7b-2047-4d58-a3c6-de3133c66aa9","block_type":"box","text":"Members Life Insurance Company","page_number":150,"box":{"x":510,"y":286,"width":241,"height":12}},{"id":"daa697b2-8238-498b-b7a6-06c9aeac4773","block_type":"box","text":"Merrill Lynch, Pierce, Fenner & Smith Incorporated","page_number":150,"box":{"x":510,"y":307,"width":356,"height":11}},{"id":"121400b5-47b6-445f-bdef-53c249faa962","block_type":"box","text":"Metavante Corporation","page_number":150,"box":{"x":510,"y":327,"width":160,"height":11}},{"id":"491c170d-245c-462a-adb2-f1fd911c3289","block_type":"box","text":"Metropolitan Life Insurance Company","page_number":150,"box":{"x":510,"y":347,"width":264,"height":11}},{"id":"96458548-d850-422b-a613-39a8b33abb40","block_type":"box","text":"Mid Atlantic Clearing & Settlement Corporation","page_number":150,"box":{"x":510,"y":367,"width":330,"height":11}},{"id":"4ebcaad3-16a7-401b-9040-56aad1db9a28","block_type":"box","text":"Midland Life Insurance Company","page_number":150,"box":{"x":510,"y":387,"width":231,"height":11}},{"id":"1b720125-e0af-4b1a-ad1b-281aa5fcd1e7","block_type":"box","text":"Minnesota Life Insurance Company","page_number":150,"box":{"x":510,"y":407,"width":249,"height":12}},{"id":"442b5c0c-189d-4b58-b0b9-8cc4f9db1c57","block_type":"box","text":"Mischler Financial Group","page_number":150,"box":{"x":510,"y":428,"width":173,"height":11}},{"id":"655c239f-fc1f-46f9-80bc-ab06efc9ccdd","block_type":"box","text":"Mizuho Securities USA Inc.","page_number":150,"box":{"x":510,"y":448,"width":189,"height":9}},{"id":"a5141798-2f52-43e1-abf2-379d2ac5fdcc","block_type":"box","text":"MML Distributors, LLC","page_number":150,"box":{"x":510,"y":468,"width":157,"height":10}},{"id":"897d0205-842b-4e68-b2bf-6e60a04684ef","block_type":"box","text":"MML Investors Services, LLC","page_number":150,"box":{"x":510,"y":488,"width":206,"height":11}},{"id":"0af94cf6-c23d-4ec2-8d6a-c3fdaeb8d195","block_type":"box","text":"Morgan Stanley & Co. LLC","page_number":150,"box":{"x":510,"y":508,"width":185,"height":12}},{"id":"1b4b970e-e2f0-4b1f-8fcf-6f9a0113cb07","block_type":"box","text":"Morgan Stanley Distribution, Inc.","page_number":150,"box":{"x":510,"y":529,"width":230,"height":11}},{"id":"96f71a70-a4b0-44c8-a1b1-a0ed845b34f1","block_type":"box","text":"Morgan Stanley Smith Barney LLC","page_number":150,"box":{"x":510,"y":549,"width":240,"height":11}},{"id":"c9d78a54-9eda-40af-8f6b-7c9bfd0f1172","block_type":"box","text":"MUFG Union Bank, National Association","page_number":150,"box":{"x":510,"y":569,"width":282,"height":10}},{"id":"06d45a37-6044-42c2-8ce8-743cdf493b97","block_type":"box","text":"Nassau Life Insurance Company","page_number":150,"box":{"x":510,"y":589,"width":228,"height":11}},{"id":"b372dbe8-2e2d-4a96-ac1b-8bc2b42c1a73","block_type":"box","text":"National Financial Services LLC","page_number":150,"box":{"x":510,"y":609,"width":222,"height":9}},{"id":"fff31d3e-4702-45e7-a015-836c1e9434b2","block_type":"box","text":"National Integrity Life Insurance Company","page_number":150,"box":{"x":510,"y":629,"width":295,"height":11}},{"id":"2dd0a7c2-0f9a-4200-bd94-c074460df35d","block_type":"box","text":"National Life Insurance Company","page_number":150,"box":{"x":510,"y":649,"width":233,"height":12}},{"id":"1aa0810a-f1a9-412b-8dfc-fc269dadfb59","block_type":"box","text":"Nationwide Financial Services, Inc.","page_number":150,"box":{"x":510,"y":670,"width":245,"height":10}},{"id":"a0e5f824-828d-48d6-9201-5c2914fca6ca","block_type":"box","text":"Nationwide Fund Distributors LLC","page_number":150,"box":{"x":510,"y":690,"width":234,"height":9}},{"id":"19016738-e991-4d93-9e38-b28591ea98d6","block_type":"box","text":"Nationwide Retirement Solutions","page_number":150,"box":{"x":510,"y":710,"width":231,"height":9}},{"id":"f1293f61-14f4-4bff-8226-6b0a998534e2","block_type":"box","text":"NCB Federal Savings Bank","page_number":150,"box":{"x":510,"y":730,"width":187,"height":11}},{"id":"37f06338-41a1-4066-b8ca-759bbd505136","block_type":"box","text":"New England Pension Plan Systems, LLC","page_number":150,"box":{"x":510,"y":750,"width":289,"height":11}},{"id":"ec767e86-9cc4-47f3-905e-2f601e9808a3","block_type":"box","text":"New York Life Insurance and Annuity Corporation","page_number":150,"box":{"x":510,"y":770,"width":343,"height":11}},{"id":"3da471ea-09d7-4e85-a772-9e2951d72399","block_type":"box","text":"Newport Retirement Services, Inc.","page_number":150,"box":{"x":510,"y":791,"width":242,"height":10}},{"id":"a1532e9c-b631-4d07-9578-b6bf93d9a497","block_type":"box","text":"Northbrook Bank & Trust Company","page_number":150,"box":{"x":510,"y":811,"width":247,"height":11}},{"id":"d69cb691-bd4b-41e4-b7f8-1a47cc69a31e","block_type":"box","text":"Northern Trust Company","page_number":150,"box":{"x":510,"y":831,"width":173,"height":11}},{"id":"145b9494-eaad-4398-bb40-e19628b6bb6a","block_type":"box","text":"Northwestern Mutual Investment Services, LLC","page_number":150,"box":{"x":510,"y":851,"width":335,"height":10}},{"id":"a8a432b7-3a6f-47df-8b16-7f4e2b7add2d","block_type":"box","text":"Northwestern Mutual Life Insurance Company","page_number":150,"box":{"x":510,"y":871,"width":325,"height":11}},{"id":"34d37883-ecf7-44e9-822d-d15075f58c89","block_type":"box","text":"NYLife Distributors LLC","page_number":150,"box":{"x":510,"y":891,"width":162,"height":9}},{"id":"0a194614-93a3-4b69-97b5-13629c8025eb","block_type":"box","text":"Oppenheimer & Co., Inc.","page_number":150,"box":{"x":509,"y":912,"width":173,"height":10}},{"id":"5721a50f-b8b8-4f43-abd3-c8a33fc5e141","block_type":"box","text":"II-112","page_number":150,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"8902bde8-e539-45a6-901b-18ecf3dd890c","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":150,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"72ae0e33-1231-4ec2-b0e6-81c4794756a2","block_type":"box","text":"Orion Advisor Services, LLC","page_number":151,"box":{"x":69,"y":45,"width":195,"height":10}},{"id":"1672b443-d964-4802-92a9-70a941545dcb","block_type":"box","text":"Osaic Wealth, Inc.","page_number":151,"box":{"x":69,"y":65,"width":127,"height":10}},{"id":"70e2bf95-8fc4-40af-afed-3398b7d598ea","block_type":"box","text":"Pacific Life & Annuity Company","page_number":151,"box":{"x":69,"y":85,"width":219,"height":11}},{"id":"744248b2-3d11-4a7a-9835-1e6e050891b4","block_type":"box","text":"Pacific Life Insurance Company","page_number":151,"box":{"x":69,"y":105,"width":221,"height":11}},{"id":"6fd5880d-b802-4d10-8324-00cdb610aa77","block_type":"box","text":"Pacific Select Distributors, LLC","page_number":151,"box":{"x":69,"y":125,"width":218,"height":11}},{"id":"d18abd9e-3d66-4a94-b346-cccd0a67b0e8","block_type":"box","text":"Park Avenue Securities LLC","page_number":151,"box":{"x":69,"y":146,"width":193,"height":8}},{"id":"1ff31ef3-06aa-464a-a62b-acac08a808ce","block_type":"box","text":"Penserra Securities LLC","page_number":151,"box":{"x":69,"y":166,"width":170,"height":9}},{"id":"beaab29a-1315-4372-b465-893c79590361","block_type":"box","text":"Pershing LLC","page_number":151,"box":{"x":69,"y":186,"width":91,"height":11}},{"id":"9caedfe8-1830-4ee1-b656-c24601931b06","block_type":"box","text":"PFPC Inc.","page_number":151,"box":{"x":69,"y":206,"width":65,"height":9}},{"id":"6ff2963d-7082-4c8b-ab61-328dfba1f758","block_type":"box","text":"Piper Jaffray & Co.","page_number":151,"box":{"x":69,"y":226,"width":130,"height":11}},{"id":"33765e6d-7119-4a71-9468-8a38af8210ac","block_type":"box","text":"PNC Bank, National Association","page_number":151,"box":{"x":69,"y":246,"width":225,"height":11}},{"id":"0b2ef571-2c62-4f55-914a-2d8b2088b5d8","block_type":"box","text":"PNC Capital Markets LLC","page_number":151,"box":{"x":69,"y":266,"width":177,"height":11}},{"id":"33298a53-2d01-4c21-a2db-2ba7a1d5cdb4","block_type":"box","text":"PNC Investments LLC","page_number":151,"box":{"x":69,"y":287,"width":152,"height":9}},{"id":"b8b7aa30-24ac-49e4-b7ea-217874edb2e6","block_type":"box","text":"Principal Bank","page_number":151,"box":{"x":69,"y":307,"width":100,"height":11}},{"id":"b66cdd1b-bad9-4150-8160-228973fefdda","block_type":"box","text":"Principal Life Insurance Company","page_number":151,"box":{"x":69,"y":327,"width":235,"height":11}},{"id":"dd449d46-ae4a-4cad-822b-beed8da7e992","block_type":"box","text":"Protective Life and Annuity Insurance Company","page_number":151,"box":{"x":69,"y":347,"width":333,"height":11}},{"id":"6f39f754-cd85-4a0c-851f-8f671c8bb430","block_type":"box","text":"Protective Life Insurance Company","page_number":151,"box":{"x":69,"y":367,"width":245,"height":11}},{"id":"a398c833-6679-4567-b81f-981584e01676","block_type":"box","text":"Pruco Life Insurance Company","page_number":151,"box":{"x":69,"y":387,"width":215,"height":11}},{"id":"227354d4-ba69-435e-b4db-a9f7c36225f5","block_type":"box","text":"Pruco Life Insurance Company of New Jersey","page_number":151,"box":{"x":69,"y":407,"width":319,"height":12}},{"id":"bc44b574-7e24-45e3-a5db-c63c4fcf1dea","block_type":"box","text":"Prudential Annuities Distributors, Inc.","page_number":151,"box":{"x":69,"y":428,"width":264,"height":10}},{"id":"c055bf2c-fec4-4763-8f21-fcc9900e9fb2","block_type":"box","text":"Prudential Insurance Company of America","page_number":151,"box":{"x":69,"y":448,"width":296,"height":11}},{"id":"80525c57-b663-4b36-82d9-50955fc459ac","block_type":"box","text":"Raymond James & Associates, Inc.","page_number":151,"box":{"x":70,"y":468,"width":248,"height":11}},{"id":"83498f0b-105f-4002-9017-80cb20b9b5d3","block_type":"box","text":"Raymond James Financial Services, Inc.","page_number":151,"box":{"x":70,"y":488,"width":283,"height":11}},{"id":"772a2a7a-dcdd-4faa-870d-74833451ce20","block_type":"box","text":"RBC Capital Markets, LLC","page_number":151,"box":{"x":70,"y":508,"width":181,"height":11}},{"id":"f5a3f6aa-ba0f-46de-909a-d8a217ab2dae","block_type":"box","text":"Regions Bank","page_number":151,"box":{"x":70,"y":529,"width":96,"height":11}},{"id":"b01a332b-0377-4564-a5a9-c322a6e82840","block_type":"box","text":"Reliance Trust Company","page_number":151,"box":{"x":70,"y":549,"width":170,"height":11}},{"id":"93de03e0-f3ab-4cf6-8076-e95047e1a4d5","block_type":"box","text":"Reliastar Life Insurance Company","page_number":151,"box":{"x":70,"y":569,"width":237,"height":11}},{"id":"32ceae5d-a180-4b2c-8698-2c4127321b6e","block_type":"box","text":"Reliastar Life Insurance Company of New York","page_number":151,"box":{"x":70,"y":589,"width":325,"height":11}},{"id":"5e8b2c1c-4c9e-4299-b2a6-2d59d262a763","block_type":"box","text":"RiverSource Distributors, Inc.","page_number":151,"box":{"x":70,"y":609,"width":205,"height":11}},{"id":"412be182-46ef-4b98-b602-5d9d268209ad","block_type":"box","text":"RiverSource Life Insurance Co. of New York","page_number":151,"box":{"x":70,"y":629,"width":306,"height":9}},{"id":"79fee0ba-821c-4784-8ac7-b7a7a5199828","block_type":"box","text":"RiverSource Life Insurance Company","page_number":151,"box":{"x":70,"y":649,"width":259,"height":12}},{"id":"aa1167bd-d000-43e8-8f27-329fe60a399e","block_type":"box","text":"SagePoint Financial, Inc.","page_number":151,"box":{"x":69,"y":670,"width":173,"height":11}},{"id":"90accdad-9aa6-41c7-8180-b721d6c956bc","block_type":"box","text":"Sammons Retirement Solutions, Inc.","page_number":151,"box":{"x":69,"y":690,"width":260,"height":10}},{"id":"c4bf62f9-b993-406d-8705-7d6de5659655","block_type":"box","text":"Sanctuary Wealth Group, LLC","page_number":151,"box":{"x":69,"y":710,"width":208,"height":11}},{"id":"ca086fb6-4668-4c55-a015-fb1166e8280e","block_type":"box","text":"Santander Bank, N.A.","page_number":151,"box":{"x":69,"y":730,"width":151,"height":10}},{"id":"058da83b-b206-439e-a2ec-2d2c9399764b","block_type":"box","text":"Saturna Trust Company","page_number":151,"box":{"x":69,"y":750,"width":167,"height":11}},{"id":"7a794819-cc0a-44a7-a02f-e14c443a8e90","block_type":"box","text":"Securities America, Inc.","page_number":151,"box":{"x":69,"y":770,"width":166,"height":11}},{"id":"6f876024-f2f7-4eff-9010-0a7d6278dd1a","block_type":"box","text":"Securities Finance Trust Company","page_number":151,"box":{"x":69,"y":791,"width":241,"height":11}},{"id":"57cc3778-26fa-46d8-aaee-860b0c6626d5","block_type":"box","text":"Security Benefit Life Insurance Company","page_number":151,"box":{"x":69,"y":811,"width":287,"height":11}},{"id":"b29d4df5-de66-4f7d-bc4c-940d05d1a002","block_type":"box","text":"Security Financial Resources, Inc.","page_number":151,"box":{"x":69,"y":831,"width":238,"height":11}},{"id":"5d35625d-ad9b-4b9b-9cf0-5e06a26d9756","block_type":"box","text":"Security Life of Denver Insurance Company","page_number":151,"box":{"x":69,"y":851,"width":305,"height":11}},{"id":"9e7f1587-2360-4400-bbe8-84d6c990f8a3","block_type":"box","text":"SEI Private Trust Company","page_number":151,"box":{"x":69,"y":871,"width":187,"height":11}},{"id":"b7d68ab6-04a3-4b28-af0e-3dadea357fa5","block_type":"box","text":"SG Americas Securities, LLC","page_number":151,"box":{"x":69,"y":891,"width":202,"height":11}},{"id":"21f63590-35de-4639-8046-918cee7774f8","block_type":"box","text":"Silicon Valley Bank","page_number":151,"box":{"x":69,"y":912,"width":132,"height":11}},{"id":"e03afc2b-b936-49e9-950b-12176fc549cf","block_type":"box","text":"Standard Insurance Company","page_number":151,"box":{"x":509,"y":45,"width":209,"height":11}},{"id":"6117be06-32a5-4afe-bad8-10bc799a6459","block_type":"box","text":"State Farm Life and Accident Assurance Company","page_number":151,"box":{"x":509,"y":65,"width":355,"height":11}},{"id":"a20f3d16-7c20-47b9-9a1b-18edb33a5466","block_type":"box","text":"State Farm Life Insurance Company","page_number":151,"box":{"x":509,"y":85,"width":254,"height":11}},{"id":"4c6733c4-d630-456c-82c4-e75873962e57","block_type":"box","text":"State Farm VP Management Corp.","page_number":151,"box":{"x":509,"y":105,"width":240,"height":11}},{"id":"ba9f9f71-3fe2-4625-828f-9beb20d483bf","block_type":"box","text":"State Street Bank and Trust Company","page_number":151,"box":{"x":509,"y":125,"width":269,"height":11}},{"id":"7e320300-f473-4978-b8d9-594755ededf4","block_type":"box","text":"State Street Global Markets, LLC","page_number":151,"box":{"x":509,"y":146,"width":234,"height":10}},{"id":"ce2a0a6f-8d7a-4acc-8e87-cbb9fe0aef34","block_type":"box","text":"Stern Brothers & Co.","page_number":151,"box":{"x":509,"y":166,"width":147,"height":9}},{"id":"0495cd40-d3c6-4395-85ce-bc1b4cd1e537","block_type":"box","text":"Stifel, Nicolaus & Company, Incorporated","page_number":151,"box":{"x":509,"y":186,"width":291,"height":11}},{"id":"d7897dfc-3ae4-452e-a5d9-f61d877694ee","block_type":"box","text":"Summit Brokerage Services, Inc.","page_number":151,"box":{"x":509,"y":206,"width":232,"height":11}},{"id":"52f3a3a9-52f6-42aa-b7fc-36ba28f93afc","block_type":"box","text":"SVB Asset Management","page_number":151,"box":{"x":509,"y":226,"width":171,"height":11}},{"id":"15fe3580-3d28-40c5-9385-1243bc13eb12","block_type":"box","text":"Symetra Life Insurance Company","page_number":151,"box":{"x":509,"y":246,"width":234,"height":11}},{"id":"2a669672-1337-4c41-8967-1045368c02e2","block_type":"box","text":"Syntal Capital Partners, LLC","page_number":151,"box":{"x":509,"y":266,"width":199,"height":12}},{"id":"46e336f4-daf9-44f7-a88b-03b9d14aa382","block_type":"box","text":"T. Rowe Price Retirement Plan Services, Inc.","page_number":151,"box":{"x":509,"y":287,"width":314,"height":10}},{"id":"29cfead0-af1f-4305-99d2-0f8f4ec070b1","block_type":"box","text":"Talcott Resolution Life and Annuity Insurance Company","page_number":151,"box":{"x":509,"y":307,"width":390,"height":11}},{"id":"2570ff70-7397-4a8f-af74-ccdba516fbc6","block_type":"box","text":"Talcott Resolution Life Insurance Company","page_number":151,"box":{"x":509,"y":327,"width":302,"height":11}},{"id":"d33252d8-d350-4090-a2e4-8970b142adb5","block_type":"box","text":"TD Ameritrade Clearing, Inc.","page_number":151,"box":{"x":509,"y":347,"width":197,"height":11}},{"id":"77f54618-7e6c-4eec-a0cc-45ec23c81bdd","block_type":"box","text":"TD Ameritrade, Inc.","page_number":151,"box":{"x":509,"y":367,"width":135,"height":11}},{"id":"e796f310-e177-4085-8753-3914f2b187a4","block_type":"box","text":"TD Prime Services (US) LLC","page_number":151,"box":{"x":509,"y":387,"width":196,"height":11}},{"id":"2007541a-6135-4047-b103-f76fd702087f","block_type":"box","text":"Teachers Insurance and Annuity Association of America","page_number":151,"box":{"x":509,"y":407,"width":392,"height":12}},{"id":"9e9a83f0-e343-4e38-b643-b4ac790627db","block_type":"box","text":"Tigress Financial Partners, LLC","page_number":151,"box":{"x":509,"y":428,"width":220,"height":11}},{"id":"f1e1ccc2-bc98-4b0f-b481-0ed25b5af25b","block_type":"box","text":"Transamerica Financial Life Insurance Company","page_number":151,"box":{"x":509,"y":448,"width":338,"height":11}},{"id":"1328a62a-403d-42fc-8a04-2db6b1ed000d","block_type":"box","text":"Transamerica Life Insurance Company","page_number":151,"box":{"x":509,"y":468,"width":271,"height":11}},{"id":"c14fc4ec-2edc-4786-89c2-2180bcf0bb27","block_type":"box","text":"Treasury Brokerage","page_number":151,"box":{"x":509,"y":488,"width":137,"height":11}},{"id":"31d1ef13-17f6-48c7-8352-8d4299d22442","block_type":"box","text":"Triad Advisors, LLC","page_number":151,"box":{"x":509,"y":508,"width":134,"height":11}},{"id":"bb1fdb31-dc08-4bc0-a913-96f64d5e8706","block_type":"box","text":"Truist Bank","page_number":151,"box":{"x":509,"y":529,"width":80,"height":8}},{"id":"9f2db2dd-f339-4016-9ec4-b1b415f50068","block_type":"box","text":"U.S. Bancorp Investments, Inc.","page_number":151,"box":{"x":510,"y":549,"width":218,"height":11}},{"id":"c532e702-936f-47db-b841-1f06533779c7","block_type":"box","text":"U.S. Bank, National Association","page_number":151,"box":{"x":510,"y":569,"width":224,"height":10}},{"id":"6e486382-2f71-4d0b-ae7f-b31878eeec31","block_type":"box","text":"UBATCO & Co.","page_number":151,"box":{"x":510,"y":589,"width":99,"height":9}},{"id":"54a45c00-1f85-4cdf-bd66-0e69fd88135a","block_type":"box","text":"UBS Financial Services, Inc.","page_number":151,"box":{"x":510,"y":609,"width":197,"height":11}},{"id":"a0ab0dec-512d-4fd9-8a20-9f5fe596aa5c","block_type":"box","text":"UBS Securities LLC","page_number":151,"box":{"x":510,"y":629,"width":136,"height":9}},{"id":"daec2b30-753f-4a7b-a4d8-355335f65685","block_type":"box","text":"Ultimus Fund Solutions, LLC","page_number":151,"box":{"x":510,"y":649,"width":199,"height":11}},{"id":"969f8485-ea4a-4d88-91d7-6da304824b9f","block_type":"box","text":"UMB Bank, National Association","page_number":151,"box":{"x":510,"y":670,"width":228,"height":10}},{"id":"dba0b688-b1e8-4ce8-a3bc-2e41467063d6","block_type":"box","text":"United States Life Insurance Company in the City of","page_number":151,"box":{"x":510,"y":690,"width":367,"height":11}},{"id":"ad9cbf6c-df1e-47c9-b22e-a8fb97d5d209","block_type":"box","text":"New York","page_number":151,"box":{"x":510,"y":705,"width":63,"height":9}},{"id":"6137f4e8-8a1d-43d9-b803-574abff114ee","block_type":"box","text":"VALIC Retirement Services Company","page_number":151,"box":{"x":509,"y":725,"width":260,"height":11}},{"id":"043e35f6-5e6d-458c-98a7-7f36ecdd0be4","block_type":"box","text":"Vanguard Group, Inc.","page_number":151,"box":{"x":509,"y":745,"width":147,"height":11}},{"id":"1502ed6f-b594-4f2e-8279-81a758f09774","block_type":"box","text":"Vanguard Marketing Corporation","page_number":151,"box":{"x":509,"y":765,"width":227,"height":12}},{"id":"220d1508-3dcb-495b-a7ff-1fa2f9289bc9","block_type":"box","text":"Voya Financial Advisors, Inc.","page_number":151,"box":{"x":509,"y":786,"width":198,"height":11}},{"id":"bc4032b9-edef-4bdc-8e07-3d7402a00441","block_type":"box","text":"Voya Financial Partners, LLC","page_number":151,"box":{"x":509,"y":806,"width":201,"height":11}},{"id":"11ad635f-0e1f-47f3-a9cd-cffab994fe71","block_type":"box","text":"Voya Institutional Plan Services, LLC","page_number":151,"box":{"x":509,"y":826,"width":259,"height":11}},{"id":"d637b417-349c-4f77-874c-0393f12b2ff2","block_type":"box","text":"Voya Insurance and Annuity Company","page_number":151,"box":{"x":509,"y":846,"width":265,"height":11}},{"id":"11bfc4a6-b4cc-44e7-ba68-7f63e82dfde7","block_type":"box","text":"Voya Investments Distributor, LLC","page_number":151,"box":{"x":509,"y":866,"width":238,"height":11}},{"id":"2482e0c0-b84b-44a8-9d6f-091582c607a0","block_type":"box","text":"Voya Retirement Insurance and Annuity Company","page_number":151,"box":{"x":509,"y":886,"width":348,"height":11}},{"id":"bc5e90ac-c71f-47a3-a5f7-ce938e55954b","block_type":"box","text":"Waddell & Reed, Inc.","page_number":151,"box":{"x":509,"y":906,"width":147,"height":11}},{"id":"6961a513-c9e0-4ddc-bbc5-ec5179c316c5","block_type":"box","text":"II-113","page_number":151,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"6bf17bf9-4ba0-4233-a256-879c2c558a78","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":151,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"53124a22-f20c-4c77-a96b-b5a7e7077cd2","block_type":"box","text":"Wells Fargo Advisors, LLC","page_number":152,"box":{"x":68,"y":45,"width":183,"height":11}},{"id":"344c159a-dfad-4253-83cc-15487c4ea041","block_type":"box","text":"Wells Fargo Advisors Financial Network, LLC","page_number":152,"box":{"x":68,"y":65,"width":313,"height":11}},{"id":"e5472056-7f45-450c-9547-7d4efb57e1b5","block_type":"box","text":"Wells Fargo Bank, N.A.","page_number":152,"box":{"x":68,"y":85,"width":161,"height":11}},{"id":"b4bed1b5-bca4-4139-81b4-8086c0205994","block_type":"box","text":"Wells Fargo Clearing Services, LLC","page_number":152,"box":{"x":68,"y":105,"width":247,"height":11}},{"id":"f8cf8d1f-7119-4140-a901-8cf8d935f858","block_type":"box","text":"Wells Fargo Investments, LLC","page_number":152,"box":{"x":68,"y":125,"width":210,"height":12}},{"id":"28b7c459-81b8-492d-9847-f02d366eba01","block_type":"box","text":"Wells Fargo Securities, LLC","page_number":152,"box":{"x":509,"y":45,"width":193,"height":11}},{"id":"faf7bc94-0cbf-472f-aa9a-88051c12732d","block_type":"box","text":"Wilmington Trust, National Association","page_number":152,"box":{"x":509,"y":65,"width":273,"height":11}},{"id":"6286aa6e-219e-4995-8405-6fb0160db1b3","block_type":"box","text":"Woodbury Financial Services, Inc.","page_number":152,"box":{"x":509,"y":85,"width":238,"height":11}},{"id":"a1187db6-f153-4055-a0d1-e87a25bf8900","block_type":"box","text":"ZB, National Association","page_number":152,"box":{"x":509,"y":105,"width":173,"height":11}},{"id":"a9ffbe3d-17d1-4da7-91ce-ce4c94e31af5","block_type":"box","text":"E. Sponsorship and Other Incentive Payments and Services","page_number":152,"box":{"x":102,"y":164,"width":423,"height":11}},{"id":"51689e62-5c57-481a-a8db-76eaa4e6c196","block_type":"box","text":"In addition to the Additional Payments described above, BlackRock may contribute to various other incentive","page_number":152,"box":{"x":102,"y":187,"width":769,"height":11}},{"id":"f8a1eb5e-8fc2-4176-a671-84e25629ffd0","block_type":"box","text":"arrangements to promote the sale of shares, including hosting proprietary and financially sponsoring Service","page_number":152,"box":{"x":69,"y":202,"width":776,"height":11}},{"id":"c330e644-2282-40ab-af61-e58b8af8586e","block_type":"box","text":"Organizations’ training and educational seminars, conferences, meetings or events. BlackRock may also pay for the","page_number":152,"box":{"x":69,"y":217,"width":824,"height":12}},{"id":"6baffb11-3ab7-48bf-b096-51887031b1a5","block_type":"box","text":"travel, meal, lodging and other expenses of Service Organizations and their salespersons or other personnel in","page_number":152,"box":{"x":68,"y":232,"width":791,"height":12}},{"id":"92f0aea1-2b62-4327-868b-e2a80e8a71e3","block_type":"box","text":"connection with educational and sales promotional programs. This compensation is not included in, and is made in","page_number":152,"box":{"x":69,"y":248,"width":820,"height":11}},{"id":"3e40bb5e-25ef-4550-bc5e-1323dced3e2b","block_type":"box","text":"addition to, the Additional Payments described above. These payments may be made directly to the Service","page_number":152,"box":{"x":69,"y":263,"width":767,"height":11}},{"id":"134eb4b3-0b40-4c58-8900-be8b3c7700a5","block_type":"box","text":"Organizations or their affiliates, or to a third party vendor, and may vary depending upon the nature of the event or","page_number":152,"box":{"x":69,"y":278,"width":817,"height":11}},{"id":"8a43c4d0-37b3-4c3c-ac7a-d6bf020cd7bf","block_type":"box","text":"the relationship and are subject to applicable laws and regulations, including the rules of applicable self-regulatory","page_number":152,"box":{"x":68,"y":293,"width":819,"height":11}},{"id":"58a8cbac-d4a8-451b-ae55-3dc3c17a7d65","block_type":"box","text":"organizations, such as FINRA. BlackRock may pay Service Organizations additional types of incentive compensation","page_number":152,"box":{"x":69,"y":308,"width":823,"height":11}},{"id":"2bf413d0-789e-4d69-aafe-2a8d2cf8091d","block_type":"box","text":"in the future to the extent not prohibited by applicable laws or regulations.","page_number":152,"box":{"x":70,"y":323,"width":526,"height":11}},{"id":"8f29122b-185a-4974-94b6-a80ffb7a99bf","block_type":"box","text":"Separately, BlackRock has developed proprietary tools, calculators and related interactive or digital content that","page_number":152,"box":{"x":102,"y":346,"width":797,"height":11}},{"id":"667da343-a97d-4d95-9977-bdeecb139cec","block_type":"box","text":"is made available through the www.BlackRock.com website at no additional cost to Service Organizations. BlackRock","page_number":152,"box":{"x":70,"y":361,"width":833,"height":11}},{"id":"e240b0e6-ca30-448b-92c5-5c9b4824c6a6","block_type":"box","text":"configures these tools and calculators and localizes the content for Service Organizations as part of its customary","page_number":152,"box":{"x":69,"y":376,"width":817,"height":11}},{"id":"e9fc8898-87ce-4e14-b6fd-ff8e1e8ce48d","block_type":"box","text":"digital marketing support and promotion of the Funds or other BlackRock funds, iShares ETFs and other exchange","page_number":152,"box":{"x":69,"y":391,"width":815,"height":11}},{"id":"0c36c308-0690-4d65-a40c-91e2b7abafb6","block_type":"box","text":"traded products.","page_number":152,"box":{"x":68,"y":406,"width":116,"height":11}},{"id":"1d439474-c3f5-4ad3-85e5-027d757611cd","block_type":"box","text":"F. Conflicts","page_number":152,"box":{"x":102,"y":429,"width":78,"height":9}},{"id":"34c5d37f-81e9-4789-a596-105728d85581","block_type":"box","text":"Additional Payments made by BlackRock to a Service Organization or its affiliates or other incentive","page_number":152,"box":{"x":101,"y":452,"width":710,"height":11}},{"id":"9f812265-5ddb-48ce-9439-1d95e303365b","block_type":"box","text":"arrangements may be an important factor in the Service Organization’s willingness to support the sale of a Fund","page_number":152,"box":{"x":69,"y":467,"width":803,"height":11}},{"id":"ead81a27-9420-4e46-83d5-08259d88a8c0","block_type":"box","text":"and/or particular share class through its distribution system or to perform services with respect to such Fund.","page_number":152,"box":{"x":69,"y":482,"width":788,"height":11}},{"id":"49a7c629-5a07-4be4-9866-9f51c61feccb","block_type":"box","text":"Additional Payments and other incentive arrangements may also be important factors in the Service Organization’s","page_number":152,"box":{"x":68,"y":497,"width":819,"height":11}},{"id":"9ca4f06b-b049-4acb-ad8a-30dd7dba42c1","block_type":"box","text":"willingness to recommend the BlackRock Fund complex in general.","page_number":152,"box":{"x":68,"y":512,"width":473,"height":11}},{"id":"b6abf204-4277-4af7-8a08-f8eb84ce0ba1","block_type":"box","text":"BlackRock may be motivated to pay Additional Payments and other incentive compensation to promote the sale","page_number":152,"box":{"x":102,"y":535,"width":793,"height":11}},{"id":"4e32f82b-eec3-41b7-80cd-94f469a2eb30","block_type":"box","text":"of Fund shares to Customers of Service Organizations and the retention of those investments by such Customers. To","page_number":152,"box":{"x":69,"y":550,"width":835,"height":11}},{"id":"344889c4-44c1-4495-952b-0c35f83beeef","block_type":"box","text":"the extent Service Organizations sell more shares of a Fund or retain shares of a Fund in their Customers’ accounts,","page_number":152,"box":{"x":68,"y":565,"width":833,"height":11}},{"id":"b6029032-1f42-4b0a-91b2-704f3d5740fe","block_type":"box","text":"BlackRock benefits from the incremental management and other fees paid by the Fund with respect to those assets.","page_number":152,"box":{"x":70,"y":580,"width":830,"height":11}},{"id":"e69e2840-c208-4700-9bfc-355216b080eb","block_type":"box","text":"Service Organizations may have financial incentives for recommending a particular Fund, share class or fund","page_number":152,"box":{"x":102,"y":603,"width":774,"height":11}},{"id":"ece7fa2c-478a-4933-8615-3c658dfd9bd0","block_type":"box","text":"complex over another. Service Organizations may charge their Customers additional fees in connection with the","page_number":152,"box":{"x":69,"y":618,"width":794,"height":11}},{"id":"dc6cf6e7-9046-437a-8f73-a9213626654b","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":152,"box":{"x":70,"y":633,"width":818,"height":11}},{"id":"b1863e5c-ad23-4fb7-be42-610129a82812","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":152,"box":{"x":69,"y":648,"width":836,"height":11}},{"id":"8bdfe3c0-c4fa-47cd-a0fd-9e19d018b8e9","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":152,"box":{"x":69,"y":663,"width":723,"height":12}},{"id":"5606f455-5203-4a80-9125-0017a7986943","block_type":"box","text":"Shareholders should consider whether such incentives exist when evaluating any recommendations from a","page_number":152,"box":{"x":102,"y":686,"width":759,"height":11}},{"id":"201df815-2a28-411a-b259-02a07967d028","block_type":"box","text":"Service Organization to purchase or sell shares of a Fund and when considering which share class is most","page_number":152,"box":{"x":69,"y":701,"width":760,"height":11}},{"id":"bc6c72b6-0c8b-49ad-862a-a5ec0c9dabd4","block_type":"box","text":"appropriate.","page_number":152,"box":{"x":69,"y":716,"width":84,"height":11}},{"id":"73528529-bdc2-486e-a755-de8c20ff263a","block_type":"box","text":"You should consult with your Service Organization, and review carefully any disclosure by the Service","page_number":152,"box":{"x":160,"y":716,"width":738,"height":11}},{"id":"c826a746-b14d-4e19-bd1c-3da471ddc3b4","block_type":"box","text":"Organization, as to compensation received by it or its affiliates and for more information about the payments","page_number":152,"box":{"x":69,"y":731,"width":795,"height":11}},{"id":"8f4639ba-97b3-4eff-a92d-e46b7c8a0b18","block_type":"box","text":"described above.","page_number":152,"box":{"x":69,"y":746,"width":122,"height":9}},{"id":"22654c63-b0df-485c-a385-40e32b61ca7b","block_type":"box","text":"REDEMPTION OF SHARES","page_number":152,"box":{"x":385,"y":776,"width":208,"height":10}},{"id":"4ed4327e-e481-4698-a017-d767afbc9713","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":152,"box":{"x":102,"y":799,"width":798,"height":11}},{"id":"07c702f9-de0b-4d91-b1ac-f49e7a979667","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":152,"box":{"x":68,"y":814,"width":836,"height":11}},{"id":"abf61162-976d-4964-97c7-8707ab2f7736","block_type":"box","text":"computing a Fund’s NAV), by delivery of securities and other assets selected from the Fund’s portfolio holdings at the","page_number":152,"box":{"x":69,"y":829,"width":840,"height":11}},{"id":"39e90592-b942-406e-9740-74f6d06178b9","block_type":"box","text":"Manager’s discretion. In kind payment means payment will be made in portfolio securities and other assets rather","page_number":152,"box":{"x":70,"y":844,"width":814,"height":11}},{"id":"ff7a5869-8298-419b-a925-58d1a6b2318d","block_type":"box","text":"than cash. Redemptions in kind may be used in applicable circumstances, generally if the relevant shareholder is","page_number":152,"box":{"x":68,"y":859,"width":809,"height":11}},{"id":"12ff5a87-d733-4999-b7f2-4e8763c5e092","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":152,"box":{"x":69,"y":874,"width":827,"height":12}},{"id":"407d7943-0662-4fa5-9b54-d6ec0375bccc","block_type":"box","text":"shareholder might incur brokerage or other transaction costs to convert the securities and other assets to cash. Each","page_number":152,"box":{"x":69,"y":890,"width":839,"height":11}},{"id":"77e79767-38f1-4fe9-97dd-19eda98f8acb","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":152,"box":{"x":70,"y":904,"width":797,"height":12}},{"id":"864087f7-d509-4415-9678-8676f7dca280","block_type":"box","text":"II-114","page_number":152,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"bc27e076-3c2d-42d3-bad4-7cf4bc434804","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":152,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"695a926b-7b1b-4dc0-9c30-3c49c7f7ffcf","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":153,"box":{"x":69,"y":44,"width":833,"height":12}},{"id":"605cf860-97f7-4d86-a897-ed10972f6572","block_type":"box","text":"for any shareholder of the Fund.","page_number":153,"box":{"x":68,"y":60,"width":227,"height":11}},{"id":"2722cbb3-bc3e-4d8c-82ee-c435d8309f9e","block_type":"box","text":"The redemption price is the NAV per share next determined after the initial receipt of proper notice of","page_number":153,"box":{"x":101,"y":82,"width":722,"height":11}},{"id":"6cd3c13c-a987-42cd-8ccd-1743e14023e1","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":153,"box":{"x":69,"y":98,"width":818,"height":11}},{"id":"99690de5-9637-43b8-b4c9-3c10eff39e73","block_type":"box","text":"time of purchase, depending in part on the market value of the securities held by the Fund at such time. Except for","page_number":153,"box":{"x":68,"y":113,"width":821,"height":11}},{"id":"dfa65151-e91c-4345-a133-921b6f2bf6b6","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":153,"box":{"x":69,"y":128,"width":815,"height":11}},{"id":"04f8c1b3-ad28-4250-9cad-6b773dafb148","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":153,"box":{"x":68,"y":143,"width":812,"height":11}},{"id":"29fa22f6-2871-4f6d-8ebe-139c56003444","block_type":"box","text":"redemption.","page_number":153,"box":{"x":69,"y":158,"width":83,"height":11}},{"id":"1925614e-4b32-4b61-a566-6bc3364c0b98","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":153,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"1268ee28-8167-497c-aa1b-2917975b8669","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":153,"box":{"x":69,"y":196,"width":835,"height":11}},{"id":"a9b7862a-e38e-409a-a4bc-f9caa405ff96","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":153,"box":{"x":68,"y":211,"width":811,"height":11}},{"id":"7397059c-2d89-4043-baaf-dd5918d29291","block_type":"box","text":"emergency exists, as defined by the Commission, as a result of which disposal of portfolio securities or","page_number":153,"box":{"x":69,"y":226,"width":741,"height":11}},{"id":"d0e9d8f2-e720-46d9-9a70-42aa34d34630","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":153,"box":{"x":69,"y":241,"width":813,"height":11}},{"id":"531ddcdf-f527-4fc7-bfec-63c77b299d52","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":153,"box":{"x":69,"y":256,"width":787,"height":11}},{"id":"1fc68ccd-1e0e-4b44-9e3c-b29f15d2a0f5","block_type":"box","text":"recordation of the transfer of its shares upon the occurrence of any of the foregoing conditions.)","page_number":153,"box":{"x":69,"y":271,"width":685,"height":12}},{"id":"fb691e4e-6964-40f8-89bd-cc308b5572c7","block_type":"box","text":"Each Fund, with other investment companies advised by the Manager, has entered into a joint committed line of","page_number":153,"box":{"x":102,"y":294,"width":798,"height":11}},{"id":"814c0e37-bd04-4138-8802-7fe5fc6adc9d","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":153,"box":{"x":69,"y":309,"width":820,"height":11}},{"id":"f6219ace-92c5-4a1d-8cda-c2cb1ff6b4be","block_type":"box","text":"meet redemption requests from shareholders in extraordinary or emergency circumstances.","page_number":153,"box":{"x":69,"y":324,"width":653,"height":12}},{"id":"7bae02ed-f5b8-4afe-9dc5-af5540418d78","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":153,"box":{"x":102,"y":347,"width":803,"height":11}},{"id":"0f792e13-052a-44f0-8077-0e8858e63774","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":153,"box":{"x":69,"y":362,"width":827,"height":11}},{"id":"0aa6e0fc-47a3-476b-a495-7d85dedc575d","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":153,"box":{"x":68,"y":377,"width":824,"height":12}},{"id":"dd490ffb-8075-4c07-b7c0-1aab47f8ca9f","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":153,"box":{"x":70,"y":392,"width":825,"height":12}},{"id":"066da6d2-6aed-4616-b8e8-c88e85d3fc2f","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":153,"box":{"x":69,"y":407,"width":825,"height":12}},{"id":"2ead39f0-8d41-4c9e-a9a3-012a49f06df0","block_type":"box","text":"so redeemed shall have no further right with respect thereto other than to receive payment of the redemption price.","page_number":153,"box":{"x":69,"y":423,"width":823,"height":11}},{"id":"f20abe84-fbe4-45ea-9fb6-b1d02ded245b","block_type":"box","text":"Redemption","page_number":153,"box":{"x":69,"y":453,"width":86,"height":11}},{"id":"90ebb2a5-5515-49d4-b669-4f0fb7b671a8","block_type":"box","text":"Investor A, Investor A1, Investor C, Institutional and Class R Shares","page_number":153,"box":{"x":70,"y":476,"width":481,"height":10}},{"id":"51cf040d-e612-43a1-a91f-c40f58309c87","block_type":"box","text":"Redeem by Telephone:","page_number":153,"box":{"x":102,"y":498,"width":162,"height":11}},{"id":"264412d1-f64d-4d22-ab44-8336945a3a06","block_type":"box","text":"You may sell Investor Shares, excluding Investor P Shares, held at BlackRock by","page_number":153,"box":{"x":270,"y":498,"width":571,"height":11}},{"id":"eb48faaf-afcd-4a52-8cd3-cdc7a431ee3a","block_type":"box","text":"telephone request if certain conditions are met and if the amount being sold is less than (i) $100,000 for payments","page_number":153,"box":{"x":68,"y":513,"width":829,"height":12}},{"id":"a7aed8e7-4f7b-4988-af46-f89aecd6a4db","block_type":"box","text":"by check or (ii) $250,000 for payments through the Automated Clearing House Network (“ACH”) or wire transfer.","page_number":153,"box":{"x":69,"y":528,"width":798,"height":12}},{"id":"30227461-0112-4824-9b1f-2e5add692547","block_type":"box","text":"Certain redemption requests, such as those in excess of these amounts, and those where (i) the Fund does not have","page_number":153,"box":{"x":69,"y":543,"width":838,"height":12}},{"id":"b550b462-fa31-476b-9013-8c124ec146b1","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":153,"box":{"x":68,"y":559,"width":831,"height":11}},{"id":"20e221b1-86bf-4e78-bbab-8bf33852101b","block_type":"box","text":"be in writing with a medallion signature guarantee provided by any “eligible guarantor institution” as defined in Rule","page_number":153,"box":{"x":69,"y":574,"width":822,"height":11}},{"id":"7b7df257-d839-4bf4-9640-9418eb2fc4b4","block_type":"box","text":"17Ad-15 under the Securities Exchange Act of 1934 (the “Exchange Act”), whose existence and validity may be","page_number":153,"box":{"x":70,"y":589,"width":791,"height":11}},{"id":"6978ab4e-6efc-4836-9af2-d63edbde35b6","block_type":"box","text":"verified by the Transfer Agent through the use of industry publications. For Institutional Shares, certain redemption","page_number":153,"box":{"x":68,"y":604,"width":818,"height":11}},{"id":"4c3b19e8-a72d-4aad-bf16-344e9157c4bb","block_type":"box","text":"requests may require written instructions with a medallion signature guarantee. Call (800) 441-7762 for details. You","page_number":153,"box":{"x":69,"y":619,"width":829,"height":11}},{"id":"8ac8b5c7-3e01-4f32-8880-2bde016c3d24","block_type":"box","text":"can obtain a medallion signature guarantee stamp from a bank, securities dealer, securities broker, credit union,","page_number":153,"box":{"x":69,"y":634,"width":803,"height":12}},{"id":"73f44c85-2f91-462b-8c96-dca50ed15430","block_type":"box","text":"savings and loan association, national securities exchange or registered securities association. The three recognized","page_number":153,"box":{"x":69,"y":650,"width":834,"height":11}},{"id":"04f858e1-cdb9-4dc3-91ff-19a642241612","block_type":"box","text":"medallion programs are Securities Transfer Agent Medallion Program, Stock Exchanges Medallion Program and New","page_number":153,"box":{"x":69,"y":664,"width":825,"height":12}},{"id":"2521a5ee-9d9c-4312-af7b-91ef304d8f73","block_type":"box","text":"York Stock Exchange, Inc. Medallion Signature Program. Signature guarantees which are not a part of these programs","page_number":153,"box":{"x":68,"y":680,"width":840,"height":11}},{"id":"14986518-04f8-46f8-9681-529156961109","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":153,"box":{"x":68,"y":695,"width":835,"height":11}},{"id":"b902c169-c264-4f91-a802-3c9205575f18","block_type":"box","text":"required signature guarantee is all that is required for a redemption. In some cases, however, other documents may","page_number":153,"box":{"x":69,"y":710,"width":828,"height":11}},{"id":"96b7ae16-daa1-4ec9-abb9-5ae26b67abdc","block_type":"box","text":"be necessary. Additional documentary evidence of authority is required by the Transfer Agent in the event redemption","page_number":153,"box":{"x":69,"y":725,"width":835,"height":11}},{"id":"8553ed52-55e9-4c08-8f22-4327202c6fd0","block_type":"box","text":"is requested by a corporation, partnership, trust, fiduciary, executor or administrator.","page_number":153,"box":{"x":70,"y":740,"width":603,"height":11}},{"id":"46df0542-f0b9-4a99-9467-92c4e2b8f50c","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":153,"box":{"x":102,"y":763,"width":774,"height":11}},{"id":"e4ece0d4-b9f7-4002-8fc7-7c8463eadc62","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":153,"box":{"x":69,"y":778,"width":795,"height":11}},{"id":"eaf9f6b5-8b96-459e-a6b5-e2243d2df647","block_type":"box","text":"Distributor will employ reasonable procedures to confirm that instructions communicated by telephone are genuine.","page_number":153,"box":{"x":70,"y":793,"width":821,"height":11}},{"id":"ad0be46a-2667-47d1-9a52-266d2f90ee5c","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":153,"box":{"x":68,"y":808,"width":823,"height":11}},{"id":"9a2dec7f-37c8-450f-82ee-710b89c19f2a","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":153,"box":{"x":69,"y":823,"width":823,"height":11}},{"id":"17ba4206-3d9f-459a-a0c6-5c288396e37f","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":153,"box":{"x":69,"y":838,"width":809,"height":11}},{"id":"29f9e0d7-b5a9-42da-9894-79480afc9305","block_type":"box","text":"divorced, (vi) the address on the account has changed within the last 30 days or share certificates have been issued","page_number":153,"box":{"x":69,"y":853,"width":833,"height":12}},{"id":"4da73891-8622-40c2-9907-d220a84fc53e","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":153,"box":{"x":69,"y":869,"width":821,"height":11}},{"id":"0bb7b861-1942-43b0-8475-ed8a040d4900","block_type":"box","text":"address registered on the account and the social security number registered on the account. The Fund and its","page_number":153,"box":{"x":69,"y":884,"width":785,"height":11}},{"id":"05931dcc-62ec-4b47-9074-fa5faa5d3c95","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":153,"box":{"x":69,"y":899,"width":820,"height":11}},{"id":"e32656e0-8225-444c-8a30-aec38f112e79","block_type":"box","text":"II-115","page_number":153,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"9544a817-eb19-4aa5-bcef-959d0e4ee9a4","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":153,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"cf485f6b-0cb6-48e0-9976-335300c8b177","block_type":"box","text":"are reasonably believed to be genuine in accordance with such procedures. Before telephone requests will be","page_number":154,"box":{"x":69,"y":45,"width":782,"height":11}},{"id":"ef28bc4d-b30e-4406-a62d-67cf51eedb44","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":154,"box":{"x":69,"y":60,"width":838,"height":11}},{"id":"4bf63260-38c4-4144-82da-65001df1e206","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":154,"box":{"x":68,"y":75,"width":837,"height":11}},{"id":"e608d7d3-d903-460b-bfcc-650958266f9d","block_type":"box","text":"change, telephone redemptions may be difficult to complete. Please find below alternative redemption methods.","page_number":154,"box":{"x":69,"y":90,"width":800,"height":11}},{"id":"796dc420-584b-4742-9452-5c77758d5f57","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":154,"box":{"x":102,"y":113,"width":776,"height":11}},{"id":"01ceccf2-1679-43ac-bb2c-72c04d163283","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":154,"box":{"x":70,"y":128,"width":823,"height":11}},{"id":"81902992-ae7b-42b9-b20f-e3e501098f94","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":154,"box":{"x":69,"y":143,"width":820,"height":11}},{"id":"792863f1-ed88-4b25-9f9e-65cdc128b6b0","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":154,"box":{"x":68,"y":158,"width":826,"height":11}},{"id":"38fac027-04e7-4cb1-913c-fcf05a0eea1d","block_type":"box","text":"the redemption order will be accepted and processed the next succeeding business day when the Federal Reserve","page_number":154,"box":{"x":68,"y":173,"width":817,"height":11}},{"id":"dccb48bf-97e2-4c73-aad6-570bc8a6b155","block_type":"box","text":"Bank of Philadelphia is open, provided that the Fund’s custodian is also open for business.","page_number":154,"box":{"x":70,"y":188,"width":648,"height":11}},{"id":"5e90c8af-7f08-456f-8ebc-44b82d529f1d","block_type":"box","text":"Redeem by VRU:","page_number":154,"box":{"x":102,"y":211,"width":120,"height":11}},{"id":"85dc5c83-8a67-4465-b27c-b561f4473ba2","block_type":"box","text":"Investor class shares, excluding Investor P Shares, may also be redeemed by use of a Fund’s","page_number":154,"box":{"x":229,"y":211,"width":667,"height":11}},{"id":"18d8f668-2515-4aa1-ab25-3c1f50a29e07","block_type":"box","text":"automated voice response unit service (“VRU”). Payment for Investor class shares redeemed by VRU may be made","page_number":154,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"730692bd-58af-4b02-a79e-8e3b52ca98ae","block_type":"box","text":"for non-retirement accounts in amounts up to $25,000, either through check, ACH or wire.","page_number":154,"box":{"x":68,"y":241,"width":644,"height":11}},{"id":"ccad0a0c-2b32-438d-b2dc-ceb7808724c6","block_type":"box","text":"Redeem by Internet:","page_number":154,"box":{"x":102,"y":264,"width":147,"height":11}},{"id":"031d3733-5e7d-4442-8891-7f4a161bb4e5","block_type":"box","text":"Certain Investor and Institutional class shares may also be redeemed by logging onto the","page_number":154,"box":{"x":255,"y":264,"width":637,"height":11}},{"id":"4ba062ef-eaf1-4a1d-af0e-d59e573661da","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":154,"box":{"x":70,"y":279,"width":836,"height":11}},{"id":"88676dc2-86d1-4ac0-ba5f-39e44ecef42e","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":154,"box":{"x":68,"y":294,"width":823,"height":11}},{"id":"d63f0beb-2abe-4e94-a6af-7ff24911fad6","block_type":"box","text":"to $100,000 per account per day, either through check, ACH or wire. Different maximums may apply to certain","page_number":154,"box":{"x":68,"y":309,"width":789,"height":11}},{"id":"349543e7-4196-46b4-bdb4-0a3dd4c6c51d","block_type":"box","text":"institutional investors.","page_number":154,"box":{"x":70,"y":325,"width":155,"height":8}},{"id":"c2087421-816b-4476-ae64-6cc9a8d7a88a","block_type":"box","text":"Redeem in Writing:","page_number":154,"box":{"x":102,"y":347,"width":137,"height":11}},{"id":"493638ee-ffe6-4f75-a9a0-24fc21fb8a61","block_type":"box","text":"If you hold shares with the Transfer Agent you may redeem such shares without charge by","page_number":154,"box":{"x":247,"y":347,"width":639,"height":11}},{"id":"05747875-1316-4f2d-bc9a-581a350c7e89","block_type":"box","text":"writing to BlackRock, P.O. Box 534429, Pittsburgh, Pennsylvania 15253-4429. Redemption requests delivered other","page_number":154,"box":{"x":68,"y":362,"width":831,"height":11}},{"id":"872da44a-7078-47c9-b12c-256c0761752c","block_type":"box","text":"than by mail should be sent to BlackRock, Attention: 534429, 1350 Penn Avenue Suite 102, Pittsburgh,","page_number":154,"box":{"x":68,"y":377,"width":745,"height":12}},{"id":"abdf8510-2e1e-483c-8cb8-46978aad1ee2","block_type":"box","text":"Pennsylvania 15222. If you hold share certificates issued by your Fund, the letter must be accompanied by","page_number":154,"box":{"x":69,"y":392,"width":764,"height":12}},{"id":"2bca5028-ce1d-47e8-adb7-a170fb4221b1","block_type":"box","text":"certificates for the shares. All shareholders on the account must sign the letter. A medallion signature guarantee will","page_number":154,"box":{"x":69,"y":407,"width":831,"height":12}},{"id":"d560250e-ad28-4d04-a6da-4d146e5c521b","block_type":"box","text":"generally be required but may be waived in certain limited circumstances. You can obtain a medallion signature","page_number":154,"box":{"x":68,"y":423,"width":794,"height":11}},{"id":"c177a121-4797-4c15-8d34-34b46e5c2835","block_type":"box","text":"guarantee stamp from a bank, securities dealer, securities broker, credit union, savings and loan association,","page_number":154,"box":{"x":68,"y":438,"width":782,"height":11}},{"id":"41903d4b-44ec-4c12-a7f6-f102ee74b5a4","block_type":"box","text":"national securities exchange or registered securities association. A notary public seal will not be acceptable. If you","page_number":154,"box":{"x":69,"y":453,"width":817,"height":11}},{"id":"5701644a-bc74-4789-a006-718e83bac778","block_type":"box","text":"hold stock certificates, return the certificates with the letter. Proceeds from redemptions may be sent via check, ACH","page_number":154,"box":{"x":69,"y":468,"width":836,"height":11}},{"id":"7a234aa0-743d-4c15-80c7-8461c5987dea","block_type":"box","text":"or wire to the bank account of record.","page_number":154,"box":{"x":69,"y":483,"width":266,"height":9}},{"id":"9f65eb43-8aa6-4a24-ae45-f3a709215f7d","block_type":"box","text":"Redemptions of Investor P Shares, Service Shares, Class G Shares, Class K Shares and BlackRock Shares may","page_number":154,"box":{"x":102,"y":506,"width":802,"height":11}},{"id":"eba88023-833c-4a1f-a7fb-8d007ae5f15b","block_type":"box","text":"be made in the manner and amounts described in the Prospectuses.","page_number":154,"box":{"x":69,"y":521,"width":489,"height":11}},{"id":"ad3f04aa-f6dd-4b00-b14d-7185fdd465ba","block_type":"box","text":"The Funds or the Transfer Agent may temporarily suspend telephone transactions at any time.","page_number":154,"box":{"x":101,"y":543,"width":668,"height":12}},{"id":"c4c5cd8c-57b3-4e96-bca0-0e0e1d8a7a64","block_type":"box","text":"If you redeem shares directly with the Transfer Agent, payments will generally be mailed within one business day","page_number":154,"box":{"x":102,"y":566,"width":800,"height":11}},{"id":"f56c136b-4ecf-4c23-9370-3ba615666815","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":154,"box":{"x":69,"y":581,"width":838,"height":12}},{"id":"adbc5743-35dc-4cc4-a96b-7666a8297eda","block_type":"box","text":"(that is, cash, Federal funds or certified check drawn on a U.S. bank) has been collected for the purchase of Fund","page_number":154,"box":{"x":69,"y":596,"width":811,"height":11}},{"id":"3630893c-b44c-4689-a4c6-a1acbe6f4e18","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":154,"box":{"x":69,"y":612,"width":789,"height":11}},{"id":"e04b511a-aeba-4c12-9e33-fd0315e8d98a","block_type":"box","text":"contains a fractional share balance following a redemption, the fractional share balance will be automatically","page_number":154,"box":{"x":69,"y":627,"width":775,"height":11}},{"id":"9f713b12-0d9d-4404-907c-4a4f0a61cf90","block_type":"box","text":"redeemed by the Fund.","page_number":154,"box":{"x":69,"y":642,"width":162,"height":11}},{"id":"c1903456-607f-422e-a462-6b59ed481ea5","block_type":"box","text":"Note on Low Balance Accounts.","page_number":154,"box":{"x":102,"y":665,"width":223,"height":8}},{"id":"40d1fcda-69cf-422c-b3c9-cb53b40addc2","block_type":"box","text":"Because of the high cost of maintaining smaller shareholder accounts,","page_number":154,"box":{"x":332,"y":664,"width":503,"height":12}},{"id":"2b9f5ad0-5d7a-4dba-b3a2-444fab477d15","block_type":"box","text":"BlackRock has set a minimum balance of $500 in each Fund position you hold within your account (“Fund","page_number":154,"box":{"x":70,"y":679,"width":752,"height":12}},{"id":"641b847f-f5ee-47e9-abab-69da3c33188e","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":154,"box":{"x":70,"y":694,"width":829,"height":12}},{"id":"782c1328-7b55-4b2f-9c26-38570ae83de3","block_type":"box","text":"for any reason, including market fluctuation.","page_number":154,"box":{"x":68,"y":710,"width":313,"height":11}},{"id":"a35829fa-2c25-43a0-8467-b765da58304e","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":154,"box":{"x":101,"y":732,"width":775,"height":12}},{"id":"1dde2795-6585-4cc5-b08e-e00a9f9f3176","block_type":"box","text":"involuntary redemption. This notification will provide you with a 90 calendar day period to make an additional","page_number":154,"box":{"x":70,"y":748,"width":773,"height":11}},{"id":"b7a29799-92e3-4245-9c8e-a31f006bf406","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":154,"box":{"x":70,"y":762,"width":776,"height":12}},{"id":"0fbcc542-0ed6-4688-84f6-613f138b55e4","block_type":"box","text":"redemption. This involuntary redemption will not charge any deferred sales charge, and may not apply to accounts of","page_number":154,"box":{"x":69,"y":778,"width":834,"height":11}},{"id":"27bbd0e2-6ffe-4b8d-8c1b-8881512fa176","block_type":"box","text":"certain employer-sponsored retirement plans (not including IRAs), qualified state tuition plan (529 Plan) accounts,","page_number":154,"box":{"x":69,"y":793,"width":811,"height":11}},{"id":"9138d01e-b935-4e57-aad8-a5b20db75e62","block_type":"box","text":"and select fee-based programs at your financial intermediary.","page_number":154,"box":{"x":69,"y":808,"width":435,"height":11}},{"id":"84efbb54-9fb5-4fa4-89f5-9f720f8b1047","block_type":"box","text":"Redemptions in Kind:","page_number":154,"box":{"x":102,"y":831,"width":153,"height":11}},{"id":"085b9c83-b8d9-4c8e-847c-777db684f389","block_type":"box","text":"Each Fund reserves the right to honor any request for redemption by making payment in","page_number":154,"box":{"x":263,"y":831,"width":624,"height":11}},{"id":"5ddf83e8-e3d3-4271-9a03-6d88865542ba","block_type":"box","text":"whole or in part by delivering securities valued in the same way as they would be valued for purposes of computing a","page_number":154,"box":{"x":68,"y":846,"width":833,"height":11}},{"id":"5b07ad76-f663-4197-8106-9cb8badccd8c","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":154,"box":{"x":70,"y":860,"width":825,"height":12}},{"id":"07b0f9ea-864f-4f24-9108-8a2faed8433f","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":154,"box":{"x":69,"y":876,"width":811,"height":11}},{"id":"90440fc7-bb98-4b29-8f7b-ea2d8b1d3749","block_type":"box","text":"normally be paid in cash but may be paid wholly or partly by a distribution in kind of securities.","page_number":154,"box":{"x":69,"y":891,"width":672,"height":11}},{"id":"d7a3b1a7-81d2-42a4-9b2e-e8f94dc8203e","block_type":"box","text":"II-116","page_number":154,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"cd18f6e0-0213-4f6f-acf2-ae2abb1c7e72","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":154,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"eea9cba7-b96c-4208-ad40-f2145f5df110","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":155,"box":{"x":101,"y":45,"width":787,"height":11}},{"id":"2609b989-7f69-4acc-94c0-d8662fcc0d7b","block_type":"box","text":"rata representation of the Fund’s portfolio or a non-pro-rata representation of the Fund’s portfolio depending upon","page_number":155,"box":{"x":69,"y":60,"width":812,"height":11}},{"id":"f707c82c-7c3c-49f0-81d0-5c3844d919ed","block_type":"box","text":"various circumstances and subject to the Funds’ policies and procedures and any applicable laws or regulations. In","page_number":155,"box":{"x":68,"y":75,"width":822,"height":11}},{"id":"09724713-beeb-4d40-8206-37fec7774d9d","block_type":"box","text":"effecting such redemption in kind, the Manager may select securities to distribute to the redeeming shareholder by","page_number":155,"box":{"x":69,"y":90,"width":822,"height":11}},{"id":"526c01b1-5941-48fc-b413-3e57cb59fa45","block_type":"box","text":"considering certain factors, including, without limitation, the portfolio management team’s model or optimal portfolio,","page_number":155,"box":{"x":69,"y":105,"width":838,"height":11}},{"id":"c0c2e115-3ea4-459c-b8d1-03c58663a29a","block_type":"box","text":"risk management considerations, compliance considerations, the active positioning of a Fund post-redemption, the","page_number":155,"box":{"x":69,"y":120,"width":818,"height":12}},{"id":"33abe072-1405-4141-b0d3-bbda0a534bae","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":155,"box":{"x":70,"y":135,"width":801,"height":11}},{"id":"90c3cc5f-324d-4591-a182-05489c215c6d","block_type":"box","text":"retain those securities that will perform the best. An Index Fund may deviate from pro rata redemptions but will seek","page_number":155,"box":{"x":69,"y":150,"width":832,"height":12}},{"id":"e21f0047-9515-4249-a083-5e776e8a95b7","block_type":"box","text":"for the securities and other assets to be distributed to be deemed to be a fair representation of portfolio holdings","page_number":155,"box":{"x":68,"y":166,"width":812,"height":11}},{"id":"529b766e-2a19-4cb5-969b-7f18d88abf19","block_type":"box","text":"and the interests of the remaining shareholders in the Index Fund to not be diluted.","page_number":155,"box":{"x":69,"y":181,"width":594,"height":11}},{"id":"748ed424-8d2c-4954-873b-122e3cbbf273","block_type":"box","text":"The Funds may effect redemptions in kind in an effort to, among other considerations: (a) manage the portfolio","page_number":155,"box":{"x":101,"y":203,"width":795,"height":12}},{"id":"f4aea64d-4797-43d0-b4c0-e4b772466fd1","block_type":"box","text":"efficiently or for any other portfolio management purpose, and (b) externalize certain transaction costs that would","page_number":155,"box":{"x":69,"y":218,"width":810,"height":12}},{"id":"5fcdaf53-c0bc-4186-9b5f-3ac049586460","block_type":"box","text":"otherwise be borne by a Fund in connection with redemption activity or portfolio turnover. Redemptions in kind may","page_number":155,"box":{"x":69,"y":234,"width":820,"height":11}},{"id":"8a96e53a-c1e6-41df-8478-dcbd5291e311","block_type":"box","text":"reduce the need for the Fund to maintain short-term cash reserves, reduce Fund transaction costs, reduce the need","page_number":155,"box":{"x":69,"y":249,"width":828,"height":10}},{"id":"d25993ef-7766-4e09-ae10-a9317bb07ada","block_type":"box","text":"for the Fund to sell its investments at inopportune times, and lower Fund capital gain recognition, all of which may be","page_number":155,"box":{"x":68,"y":264,"width":838,"height":11}},{"id":"be0f4952-762f-49c9-9ead-5621db9ce05a","block_type":"box","text":"considerations when determining whether to effect a redemption in kind. However, there can be no assurance that","page_number":155,"box":{"x":69,"y":279,"width":817,"height":11}},{"id":"2b68d914-174f-4986-92af-bc3982626cf5","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":155,"box":{"x":69,"y":294,"width":802,"height":11}},{"id":"fd8d2eb6-541f-44b1-bd14-0c5f94a29adc","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":155,"box":{"x":70,"y":309,"width":837,"height":11}},{"id":"4544b550-fbe5-4ff6-96e9-87843413d519","block_type":"box","text":"other things, how they hold their Fund shares or the small value of the redemptions.","page_number":155,"box":{"x":69,"y":324,"width":598,"height":12}},{"id":"db8091c2-9e71-4c23-bd8b-9e309a632eb4","block_type":"box","text":"In some circumstances, in order to meet Fund liquidity needs, for optimization of the Fund’s portfolio, or a","page_number":155,"box":{"x":102,"y":347,"width":756,"height":11}},{"id":"6f157aa4-b7f6-4d79-b536-795b2878fab8","block_type":"box","text":"combination thereof, a Fund, in its discretion, may accept large purchase orders from one or more financial","page_number":155,"box":{"x":69,"y":362,"width":764,"height":11}},{"id":"052217d6-e2fd-483c-88a4-52c20bb57cbc","block_type":"box","text":"institutions that are willing, upon redemption of their investment in the Fund, to receive their redemption proceeds in","page_number":155,"box":{"x":70,"y":377,"width":830,"height":12}},{"id":"9871985d-d2ce-4c76-a8fb-f4e4447a4510","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":155,"box":{"x":69,"y":392,"width":821,"height":12}},{"id":"2e86dd7a-452a-4a19-b24a-4252c6445c41","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":155,"box":{"x":68,"y":408,"width":837,"height":11}},{"id":"94aae9c7-0cfa-439b-b685-2a07158c2c74","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":155,"box":{"x":68,"y":423,"width":784,"height":11}},{"id":"694d32e8-8d8c-4187-87c3-440997b9a620","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":155,"box":{"x":69,"y":438,"width":801,"height":11}},{"id":"daa42611-4eb7-4d31-99a3-e077b9bc14c6","block_type":"box","text":"things, limitations on frequency of redemptions in kind under the Fund’s policies and availability of shareholders able","page_number":155,"box":{"x":68,"y":453,"width":835,"height":11}},{"id":"594f40ef-2f33-41f8-88c5-4b6a0be080a8","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":155,"box":{"x":68,"y":468,"width":796,"height":11}},{"id":"4be785ed-70f5-4034-ac09-dbd937a37821","block_type":"box","text":"institutions that participate in the transactions described in this sub-section do not receive a fee from the Fund for","page_number":155,"box":{"x":70,"y":483,"width":816,"height":11}},{"id":"5d2bab8b-6de9-4ed0-9527-9d62b724827f","block_type":"box","text":"doing so. The Funds’ short-term trading policy shall not apply to the transactions described in this sub-section.","page_number":155,"box":{"x":69,"y":498,"width":788,"height":11}},{"id":"86d0470a-96f3-457d-b148-a2196abe45a3","block_type":"box","text":"If you receive securities through a redemption in kind, and desire to convert them to cash, you may pay taxes","page_number":155,"box":{"x":102,"y":521,"width":779,"height":11}},{"id":"4911b8d9-2f06-4a38-8f04-1d1a25eb1161","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":155,"box":{"x":69,"y":536,"width":823,"height":11}},{"id":"2905e566-635f-4e93-9f43-8a6f88aeb6d6","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":155,"box":{"x":68,"y":551,"width":800,"height":11}},{"id":"40e95510-54ef-4426-ac58-ef6c58880812","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":155,"box":{"x":69,"y":566,"width":826,"height":11}},{"id":"ce6e4409-e1ef-4583-90e4-cf746000510b","block_type":"box","text":"the NAV of the corresponding Fund.","page_number":155,"box":{"x":68,"y":581,"width":251,"height":12}},{"id":"c4a24cce-1088-4c7e-8a94-b0cd2c395e46","block_type":"box","text":"Repurchase","page_number":155,"box":{"x":69,"y":612,"width":85,"height":11}},{"id":"586bec23-d18d-4ad1-a580-26a1c787dbbb","block_type":"box","text":"A Fund normally will accept orders to repurchase shares from Selling Dealers for their customers. Shares will be","page_number":155,"box":{"x":101,"y":634,"width":800,"height":12}},{"id":"7a238e21-aed2-436e-9a26-8849e848892a","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":155,"box":{"x":70,"y":649,"width":833,"height":12}},{"id":"a6e7336b-f406-4964-9f01-a946b446f048","block_type":"box","text":"authorized by the Distributor by contract to accept such orders. As to repurchase orders received by Selling Dealers","page_number":155,"box":{"x":69,"y":665,"width":822,"height":11}},{"id":"8fbdaa48-4fce-44e1-866a-367467f19bdf","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":155,"box":{"x":70,"y":680,"width":809,"height":11}},{"id":"e776e570-1455-423f-abfb-f70b752a0402","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":155,"box":{"x":69,"y":695,"width":831,"height":11}},{"id":"3240b9a6-39bf-4dd1-9574-0650be50e858","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":155,"box":{"x":70,"y":710,"width":796,"height":11}},{"id":"a8375037-95a3-461f-b50b-f7c497888417","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":155,"box":{"x":69,"y":725,"width":812,"height":11}},{"id":"c7125268-516f-41dc-aea8-4626b28b0756","block_type":"box","text":"next business day.","page_number":155,"box":{"x":69,"y":740,"width":130,"height":11}},{"id":"1ea2a7ef-edb2-42c2-abde-1cf5dcf96816","block_type":"box","text":"These repurchase arrangements are for your convenience and do not involve a charge by the Fund (other than","page_number":155,"box":{"x":101,"y":763,"width":783,"height":11}},{"id":"090ca55f-d7e1-41c7-8d4f-d973291a025f","block_type":"box","text":"any applicable CDSC or redemption fee). However, Selling Dealers may charge a processing fee in connection with","page_number":155,"box":{"x":69,"y":778,"width":813,"height":11}},{"id":"dd7b3657-d4fb-4981-b13c-12a73ad58220","block_type":"box","text":"such transactions. In addition, securities firms that do not have selected dealer agreements with the Distributor may","page_number":155,"box":{"x":69,"y":793,"width":832,"height":11}},{"id":"a4c63a70-489c-454a-8256-10cd0f9fa71b","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":155,"box":{"x":70,"y":808,"width":814,"height":11}},{"id":"362680e4-02a0-4351-9bbd-06bdbe7cfc4a","block_type":"box","text":"reject any order for repurchase. A shareholder whose order for repurchase is rejected by a Fund, however, may","page_number":155,"box":{"x":69,"y":823,"width":788,"height":11}},{"id":"8667dddd-b890-495d-8779-962fd5951ccc","block_type":"box","text":"redeem shares as set out above.","page_number":155,"box":{"x":69,"y":839,"width":235,"height":8}},{"id":"af05cfc4-ec2b-4370-92a0-43bb677c00f2","block_type":"box","text":"II-117","page_number":155,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"cf917dee-c53d-4861-a3f8-0c8b562fa480","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":155,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"bf809fd5-6f5f-4082-a26d-70490fe3c31d","block_type":"box","text":"Reinstatement Privilege — Investor A and Investor P Shares","page_number":156,"box":{"x":69,"y":45,"width":440,"height":11}},{"id":"063532af-9647-4cfe-a4f2-c1fcb2e7c348","block_type":"box","text":"Upon redemption of Investor A, Investor A1, Investor P or Institutional Shares, as applicable, shareholders may","page_number":156,"box":{"x":102,"y":67,"width":791,"height":11}},{"id":"b6f6efb3-3b5c-4309-8c2f-746e3ceb51cd","block_type":"box","text":"reinvest all or a portion of their redemption proceeds (after paying any applicable CDSC) in Investor A or Investor P","page_number":156,"box":{"x":69,"y":82,"width":815,"height":12}},{"id":"3e4f9782-0f31-4fa4-a3ea-09a52f787d04","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":156,"box":{"x":69,"y":98,"width":822,"height":11}},{"id":"be27ec5a-a98c-4849-886a-003f616e0c54","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":156,"box":{"x":68,"y":113,"width":806,"height":11}},{"id":"9eb3c64e-fdce-4a97-ba8a-8e1289444aeb","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":156,"box":{"x":69,"y":128,"width":768,"height":11}},{"id":"ac691774-0c91-42ef-9c27-ffa138befa70","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":156,"box":{"x":70,"y":143,"width":827,"height":11}},{"id":"b287f95e-bf53-4a12-8590-506a32de93bc","block_type":"box","text":"this privilege, the Transfer Agent must receive written notification from the shareholder of record or the registered","page_number":156,"box":{"x":68,"y":158,"width":809,"height":11}},{"id":"2fc7303c-0266-461b-ac8e-0392c4b09f29","block_type":"box","text":"representative of record, at the time of purchase. Investors should consult a tax advisor concerning the tax","page_number":156,"box":{"x":69,"y":173,"width":764,"height":11}},{"id":"c7b49e48-57ff-48b7-9076-d50a36e31885","block_type":"box","text":"consequences of exercising this reinstatement privilege.","page_number":156,"box":{"x":69,"y":188,"width":400,"height":12}},{"id":"d0c82bf0-7f67-4ced-ba66-e9c6e30043c2","block_type":"box","text":"SHAREHOLDER SERVICES","page_number":156,"box":{"x":384,"y":218,"width":210,"height":9}},{"id":"8cfddee5-94d7-4a17-810b-68054a5a8550","block_type":"box","text":"Each Fund offers one or more of the shareholder services described below that are designed to facilitate","page_number":156,"box":{"x":102,"y":241,"width":747,"height":11}},{"id":"dc67dc41-66c6-4063-bc9c-d85c975501e8","block_type":"box","text":"investment in its shares. You can obtain more information about these services from each Fund by calling the","page_number":156,"box":{"x":70,"y":256,"width":781,"height":11}},{"id":"0f3ea61c-f13a-4fec-a4f6-ded16e331619","block_type":"box","text":"telephone number on the cover page, or from the Distributor, your financial adviser, your selected securities dealer or","page_number":156,"box":{"x":68,"y":271,"width":836,"height":11}},{"id":"1391ca1e-0cf3-4046-b759-a2c4e463fc76","block_type":"box","text":"other financial intermediary. Certain of these services are available only to U.S. investors.","page_number":156,"box":{"x":69,"y":286,"width":641,"height":11}},{"id":"fded5b74-1274-4f7c-abc6-3c3a54942838","block_type":"box","text":"Investment Account","page_number":156,"box":{"x":69,"y":316,"width":146,"height":9}},{"id":"c79d3aaf-81ab-44e3-93be-b2d457af3a32","block_type":"box","text":"If your account is maintained at the Transfer Agent (an “Investment Account”) you will receive statements, at","page_number":156,"box":{"x":102,"y":339,"width":774,"height":11}},{"id":"a94d3047-e8ba-4fd1-9c2e-794a329a8aa9","block_type":"box","text":"least quarterly, from the Transfer Agent. These statements will serve as confirmations for automatic investment","page_number":156,"box":{"x":70,"y":354,"width":796,"height":11}},{"id":"d570a52a-6f56-4c00-862a-9276bb11c719","block_type":"box","text":"purchases and the reinvestment of dividends. The statements also will show any other activity in your Investment","page_number":156,"box":{"x":70,"y":369,"width":807,"height":11}},{"id":"8729a708-ffa0-48bf-99d4-f33fe6c87744","block_type":"box","text":"Account since the last statement. You also will receive separate confirmations for each purchase or sale transaction","page_number":156,"box":{"x":68,"y":384,"width":830,"height":11}},{"id":"466f0e3c-7002-425c-8e61-7f5f73d55fd3","block_type":"box","text":"other than automatic investment purchases and the reinvestment of dividends. If your Investment Account is held at","page_number":156,"box":{"x":69,"y":399,"width":829,"height":11}},{"id":"5523008f-850d-4567-bb8b-ea99b1c56981","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":156,"box":{"x":68,"y":414,"width":815,"height":12}},{"id":"70c3895c-d65a-4923-8a1f-95ed10e33b49","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":156,"box":{"x":70,"y":429,"width":781,"height":12}},{"id":"10d5f160-48a4-4188-856c-cf7a3aa3e2eb","block_type":"box","text":"selected securities dealer or other financial intermediary. If you transfer shares out of an account maintained with a","page_number":156,"box":{"x":69,"y":445,"width":825,"height":11}},{"id":"63b15c42-e26b-479c-898f-9de559750b02","block_type":"box","text":"selected securities dealer or other financial intermediary, an Investment Account in your name may be opened","page_number":156,"box":{"x":69,"y":460,"width":785,"height":11}},{"id":"72e8fdd7-74bc-468b-9cfd-7e702ee0b7fe","block_type":"box","text":"automatically at the Transfer Agent.","page_number":156,"box":{"x":69,"y":475,"width":251,"height":11}},{"id":"90919b93-6c5d-4561-8299-ebd954d83eed","block_type":"box","text":"You may transfer Fund shares from a selected securities dealer or other financial intermediary to another","page_number":156,"box":{"x":101,"y":498,"width":750,"height":11}},{"id":"60465551-6152-483f-bf7d-788613f96639","block_type":"box","text":"securities dealer or other financial intermediary that has entered into an agreement with the Distributor. Certain","page_number":156,"box":{"x":69,"y":513,"width":797,"height":11}},{"id":"dc4ae361-61d4-4824-94e8-d5681ff4bcfa","block_type":"box","text":"shareholder services may not be available for the transferred shares. All future trading of these assets must be","page_number":156,"box":{"x":69,"y":528,"width":797,"height":11}},{"id":"2655a3d7-e568-497b-a978-9af206214fd5","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":156,"box":{"x":69,"y":543,"width":826,"height":11}},{"id":"1b3f26e9-6f46-4b16-83cc-6bc8b6aef217","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":156,"box":{"x":68,"y":558,"width":792,"height":11}},{"id":"38e0c805-9cff-40a8-a2a3-a4d884a31409","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":156,"box":{"x":69,"y":573,"width":824,"height":11}},{"id":"09caf8e3-7dee-4c2b-a938-f230b2e77fe7","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":156,"box":{"x":69,"y":588,"width":820,"height":11}},{"id":"4651d37d-deba-4833-b49c-1089f8647e14","block_type":"box","text":"Transfer Agent registered in the name of the securities dealer or other financial intermediary for your benefit whether","page_number":156,"box":{"x":68,"y":603,"width":833,"height":12}},{"id":"42520b22-0242-4a81-a3b3-9fba03f5e787","block_type":"box","text":"the securities dealer or other financial intermediary has entered into a selected dealer agreement or not. In the","page_number":156,"box":{"x":68,"y":618,"width":795,"height":12}},{"id":"080b5a8d-abe8-43cc-95ef-a9c692d73f44","block_type":"box","text":"interest of economy and convenience and because of the operating procedures of each Fund, share certificates will","page_number":156,"box":{"x":70,"y":634,"width":822,"height":11}},{"id":"4b74be97-40fc-4082-8cbf-76f1eadd01d1","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":156,"box":{"x":69,"y":649,"width":814,"height":11}},{"id":"0a946546-93e1-4f46-8548-150956b59f89","block_type":"box","text":"the holders thereof will have the same rights and ownership with respect to such shares as if certificates had been","page_number":156,"box":{"x":68,"y":664,"width":822,"height":11}},{"id":"37a49791-e85d-4f93-899e-15dc3733dcc8","block_type":"box","text":"issued.","page_number":156,"box":{"x":70,"y":679,"width":49,"height":9}},{"id":"c496868b-bfcc-4128-9dfb-74b516707e3a","block_type":"box","text":"If you are considering transferring a tax-deferred retirement account, such as an individual retirement account,","page_number":156,"box":{"x":102,"y":702,"width":785,"height":11}},{"id":"4297adb3-3a1a-4c2b-8863-db1ed42022dd","block_type":"box","text":"from one selected securities dealer to another securities dealer or other financial intermediary, you should be aware","page_number":156,"box":{"x":68,"y":717,"width":830,"height":11}},{"id":"ec673ae1-6247-44e3-bfd0-8736a9269089","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":156,"box":{"x":68,"y":732,"width":790,"height":11}},{"id":"71964530-59c8-48f8-9e28-a0773ad85fde","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":156,"box":{"x":69,"y":747,"width":831,"height":11}},{"id":"a477f591-3f1b-47b5-9ce7-4becc16d73b7","block_type":"box","text":"to maintain a retirement account at the original selected securities dealer for those shares.","page_number":156,"box":{"x":68,"y":762,"width":652,"height":11}},{"id":"b39a833d-d7e3-4de9-9b4a-777776f1e5f0","block_type":"box","text":"Exchange Privilege","page_number":156,"box":{"x":69,"y":792,"width":138,"height":11}},{"id":"42b38ab3-4d80-4de1-85bf-c6588fd7fdd7","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":156,"box":{"x":102,"y":815,"width":797,"height":11}},{"id":"b6b2f4e3-bebd-4204-b7f5-8ab0c4f6de0f","block_type":"box","text":"each Fund have an exchange privilege with certain other Funds. However, Investor A1 Shares may only exchange out.","page_number":156,"box":{"x":69,"y":830,"width":832,"height":11}},{"id":"dabe8a3e-4d4e-4af3-9439-2a29bad59ee6","block_type":"box","text":"The minimum amount for exchanges of Investor class shares is $1,000, although you may exchange less than","page_number":156,"box":{"x":68,"y":845,"width":788,"height":12}},{"id":"8bbe9a88-1e5b-4b59-a1f1-f99236a79c62","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":156,"box":{"x":69,"y":860,"width":796,"height":12}},{"id":"a530cc7b-6f85-4074-959a-6cafcec193d6","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":156,"box":{"x":69,"y":875,"width":824,"height":12}},{"id":"061f8fb6-1291-48ef-9967-c011cc8d0d91","block_type":"box","text":"closed to new investors. Before effecting an exchange, you should obtain a currently effective prospectus of the fund","page_number":156,"box":{"x":69,"y":891,"width":835,"height":11}},{"id":"f82fafca-0dc8-4e32-a3d4-69c490b2af85","block_type":"box","text":"II-118","page_number":156,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"1ca201c9-b3c6-4723-b164-1ce4e47e1f3a","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":156,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"953ca3b0-bb61-4a44-9b50-7e2c6b404018","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":157,"box":{"x":70,"y":45,"width":820,"height":11}},{"id":"7a3b624b-f9fe-46a6-a6d4-af1cfacea05f","block_type":"box","text":"shares and a purchase of the acquired shares for U.S. federal income tax purposes.","page_number":157,"box":{"x":69,"y":60,"width":600,"height":11}},{"id":"d2b313a7-8d5b-42ee-b1e5-5e8b267518e0","block_type":"box","text":"Exchanges of Investor A, Investor A1, Investor P, Class K, Institutional and Class G Shares.","page_number":157,"box":{"x":102,"y":82,"width":648,"height":12}},{"id":"f28be6e5-e08f-406c-bb89-8237ab8a076e","block_type":"box","text":"Institutional Shares","page_number":157,"box":{"x":757,"y":83,"width":137,"height":8}},{"id":"73ad48fc-8831-45d1-b8c2-054a64e598a1","block_type":"box","text":"are exchangeable with Institutional Shares of other Funds. Investor A and Investor A1 Shares are exchangeable for","page_number":157,"box":{"x":69,"y":98,"width":817,"height":11}},{"id":"3031042f-f623-4919-bbe0-df244954d759","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":157,"box":{"x":70,"y":113,"width":798,"height":11}},{"id":"5015f05e-e580-4930-80c2-90bd47260985","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":157,"box":{"x":69,"y":128,"width":838,"height":11}},{"id":"a6044645-501f-4360-942d-0ff9b7c0bfed","block_type":"box","text":"intermediary. Class K Shares are exchangeable for Class K Shares of other Funds. Class G Shares are exchangeable","page_number":157,"box":{"x":70,"y":143,"width":834,"height":11}},{"id":"057370ea-c0dd-40d8-9946-28e02b6b05f5","block_type":"box","text":"for Class G Shares of other Funds.","page_number":157,"box":{"x":68,"y":158,"width":246,"height":9}},{"id":"37be6070-7861-4ba9-a81d-152066a1ff05","block_type":"box","text":"Exchanges of Institutional Shares outstanding for Institutional Shares of a second fund or for shares of a money","page_number":157,"box":{"x":102,"y":181,"width":800,"height":11}},{"id":"7d693dc5-d26b-4fe1-a31c-3aa3df287be5","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":157,"box":{"x":69,"y":196,"width":826,"height":11}},{"id":"6aca55a8-4a1e-4474-ac4e-02547f8c2848","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":157,"box":{"x":69,"y":211,"width":795,"height":11}},{"id":"980c5bfc-db40-4e2c-b1dd-0134ea8e9eb8","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":157,"box":{"x":69,"y":226,"width":797,"height":11}},{"id":"9b587079-f416-40f5-bda6-244f131aca08","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":157,"box":{"x":70,"y":241,"width":814,"height":11}},{"id":"fd16631c-d8a1-4db7-b42d-1a53ff0f4b9e","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":157,"box":{"x":69,"y":256,"width":796,"height":12}},{"id":"ba78363d-e818-4929-9eb2-43cc924d899a","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":157,"box":{"x":69,"y":271,"width":828,"height":12}},{"id":"7b77a13c-f4ae-45dd-ae3e-18b442280eee","block_type":"box","text":"G Shares of a second fund are effected on the basis of relative NAV per share.","page_number":157,"box":{"x":69,"y":286,"width":561,"height":11}},{"id":"74e82bdf-a3a8-4cde-8c93-c8c2e8d03e58","block_type":"box","text":"Exchanges of Investor C Shares.","page_number":157,"box":{"x":102,"y":309,"width":229,"height":11}},{"id":"37b72081-0d85-46f7-8cab-fc6b17a79e82","block_type":"box","text":"Shareholders of certain Funds with Investor C Shares outstanding (“outstanding","page_number":157,"box":{"x":338,"y":309,"width":570,"height":11}},{"id":"8c4ca743-2dbd-45ee-926c-83c67d4c6441","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":157,"box":{"x":70,"y":324,"width":827,"height":12}},{"id":"aa6e731b-5c12-4a7c-bfcd-78a2932203be","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":157,"box":{"x":68,"y":339,"width":839,"height":12}},{"id":"5fa729f0-3e98-44c1-bfcd-bc6b92b4bc39","block_type":"box","text":"the payment of any CDSC. Certain Funds impose different CDSC schedules. For purposes of computing the CDSC","page_number":157,"box":{"x":68,"y":355,"width":811,"height":11}},{"id":"effb5d10-b079-4293-9889-fefa3349358b","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":157,"box":{"x":69,"y":370,"width":827,"height":11}},{"id":"f8efd393-6603-414d-913e-bb3bd30f8e56","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":157,"box":{"x":68,"y":385,"width":781,"height":11}},{"id":"00ccb24e-36a9-4c3d-a9d2-3ac2c1d0d0b6","block_type":"box","text":"towards the holding period of the new Investor C Shares or new money market fund Shares.","page_number":157,"box":{"x":68,"y":400,"width":654,"height":11}},{"id":"6e183892-e361-4415-b82f-c3058dc8ae85","block_type":"box","text":"Exchanges of Service Shares.","page_number":157,"box":{"x":102,"y":423,"width":211,"height":11}},{"id":"76041ed1-e73c-499e-9f49-ceac4f1a286f","block_type":"box","text":"Service Shares can be exchanged for Service Shares of Funds that are covered by","page_number":157,"box":{"x":319,"y":423,"width":588,"height":11}},{"id":"350d5627-9fa0-459c-8a31-5c0612df02d1","block_type":"box","text":"selected dealer agreements with the Distributor.","page_number":157,"box":{"x":69,"y":438,"width":342,"height":11}},{"id":"5d63949c-9d36-4186-8a72-55827483f067","block_type":"box","text":"Exchanges for Shares of a Money Market Fund.","page_number":157,"box":{"x":102,"y":460,"width":335,"height":12}},{"id":"b9370494-440a-4277-bce6-7f7436dd05ce","block_type":"box","text":"You may exchange any class of Investor class shares, excluding","page_number":157,"box":{"x":443,"y":460,"width":455,"height":12}},{"id":"ccb950f1-6041-4632-8541-9ab178f0d821","block_type":"box","text":"Investor P Shares, for shares of an affiliated money market fund. If you exchange into BlackRock Summit Cash","page_number":157,"box":{"x":70,"y":475,"width":788,"height":12}},{"id":"45cfa685-9555-4d71-9609-96df2c484f72","block_type":"box","text":"Reserves Fund (“Summit”), a series of BlackRock Financial Institutions Series Trust, you will receive one of two","page_number":157,"box":{"x":70,"y":491,"width":793,"height":11}},{"id":"ae2e78ce-54fa-4b03-9f83-962419480fad","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":157,"box":{"x":69,"y":506,"width":802,"height":11}},{"id":"7e81bdaa-5fb0-4928-a354-4615aa1bc5ef","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":157,"box":{"x":69,"y":521,"width":824,"height":11}},{"id":"ababc453-6580-4fbc-a567-4ec35932c913","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":157,"box":{"x":69,"y":536,"width":805,"height":11}},{"id":"b9eea3a0-68c0-4c55-95c3-d5effd8b1ac9","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":157,"box":{"x":69,"y":551,"width":827,"height":11}},{"id":"d348e621-1720-482b-a094-c9fabbc09532","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":157,"box":{"x":69,"y":566,"width":758,"height":11}},{"id":"c5562b09-9b36-49fd-a828-8d69e4cf7fca","block_type":"box","text":"satisfaction of the holding period requirement for purposes of reducing any CDSC. Investor C Shares of Summit are","page_number":157,"box":{"x":69,"y":581,"width":822,"height":12}},{"id":"81fd80d2-23e1-4f9e-a22f-bdd1b09c1068","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":157,"box":{"x":69,"y":596,"width":782,"height":12}},{"id":"d05dd655-99ac-4e9b-a288-d198ee302b6b","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":157,"box":{"x":70,"y":612,"width":814,"height":11}},{"id":"e00f39b0-87a7-4b4f-bc6a-b34239c9b157","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":157,"box":{"x":69,"y":627,"width":830,"height":11}},{"id":"da1a71ed-bf38-4963-a2aa-cab7112f505b","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":157,"box":{"x":69,"y":642,"width":821,"height":11}},{"id":"6f47a2dd-ab03-4428-a6af-1c6613026f89","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":157,"box":{"x":69,"y":657,"width":823,"height":11}},{"id":"673f1e2e-d597-46f8-882d-21e9941f99cb","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":157,"box":{"x":70,"y":672,"width":781,"height":11}},{"id":"bd894855-85d7-436b-8167-f7eb2e9b2254","block_type":"box","text":"exchange.","page_number":157,"box":{"x":69,"y":687,"width":70,"height":11}},{"id":"c1179c2e-9bb7-401a-bf7f-92148a1a75a1","block_type":"box","text":"Exchanges by Par ticipants in Cer tain Programs.","page_number":157,"box":{"x":102,"y":710,"width":337,"height":11}},{"id":"a974934c-df2d-4b86-afb2-eb2725c8a8e1","block_type":"box","text":"The exchange privilege may be modified with respect to certain","page_number":157,"box":{"x":445,"y":710,"width":448,"height":11}},{"id":"d42e951f-6981-4461-914c-a42a0138d777","block_type":"box","text":"participants in mutual fund advisory programs and other fee-based programs sponsored by the Manager, an affiliate","page_number":157,"box":{"x":70,"y":725,"width":828,"height":11}},{"id":"5abf6bae-45c6-418c-a919-def0d55ccf5c","block_type":"box","text":"of the Manager, or selected securities dealers or other financial intermediaries that have an agreement with the","page_number":157,"box":{"x":69,"y":740,"width":796,"height":11}},{"id":"7cdfee3f-d3ba-451a-bec1-fc5ca03a733a","block_type":"box","text":"Distributor. See “Fee-Based Programs” below.","page_number":157,"box":{"x":70,"y":755,"width":324,"height":11}},{"id":"ffc0e7e3-919c-4440-83cb-31885d839b61","block_type":"box","text":"Exercise of the Exchange Privilege.","page_number":157,"box":{"x":102,"y":778,"width":245,"height":11}},{"id":"967177fc-e35f-496b-86ef-b078aa595f23","block_type":"box","text":"To exercise the exchange privilege, you should contact your financial adviser","page_number":157,"box":{"x":353,"y":778,"width":543,"height":11}},{"id":"4da41886-1bf3-4a28-baa3-425e7b14c8f8","block_type":"box","text":"or the Transfer Agent, who will advise each Fund of the exchange. If you do not hold share certificates, you may","page_number":157,"box":{"x":69,"y":793,"width":794,"height":11}},{"id":"1b14aa8b-6ef9-49a4-b971-d5f176dc2677","block_type":"box","text":"exercise the exchange privilege by wire through your securities dealer or other financial intermediary. Each Fund","page_number":157,"box":{"x":69,"y":808,"width":795,"height":11}},{"id":"bea864c6-1995-4ff8-9233-83bf20819503","block_type":"box","text":"reserves the right to require a properly completed exchange application.","page_number":157,"box":{"x":69,"y":823,"width":512,"height":12}},{"id":"668a4905-ecfe-41f2-8e4b-6d52b476c2f9","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":157,"box":{"x":101,"y":846,"width":772,"height":11}},{"id":"e9de478b-137c-4fd7-b238-1bd17631a262","block_type":"box","text":"Transfer Agent at the following address: P.O. Box 534429, Pittsburgh, Pennsylvania 15253-4429. Shareholders are","page_number":157,"box":{"x":68,"y":861,"width":824,"height":11}},{"id":"e1bd0346-6864-419a-897f-39980e3a5475","block_type":"box","text":"automatically provided with telephone exchange privileges when opening an account, unless they indicate on the","page_number":157,"box":{"x":69,"y":876,"width":801,"height":11}},{"id":"4c3096ac-a95e-471b-a65c-7e43314d3a80","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":157,"box":{"x":68,"y":891,"width":817,"height":12}},{"id":"ec596b37-bfad-441b-816b-7d38cad379ee","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":157,"box":{"x":69,"y":906,"width":826,"height":12}},{"id":"d9452e4c-6e4a-4d37-9893-a6f8dc16ab3e","block_type":"box","text":"II-119","page_number":157,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"44e4acb9-3d72-47f2-95c2-b99d20d714c6","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":157,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e4bcc44a-b142-43df-bf90-2d1a4e601f09","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":158,"box":{"x":69,"y":45,"width":840,"height":11}},{"id":"6d800e62-15bb-4218-bc50-d5ca9dffdd47","block_type":"box","text":"telephone at (800) 441-7762 to request the exchange. During periods of substantial economic or market change,","page_number":158,"box":{"x":68,"y":60,"width":811,"height":11}},{"id":"9d9f278a-1ed1-4521-bef1-1476295b55d8","block_type":"box","text":"telephone exchanges may be difficult to complete and shareholders may have to submit exchange requests to the","page_number":158,"box":{"x":68,"y":75,"width":815,"height":11}},{"id":"5967b9d5-03b0-4109-8d4f-e1588a6359a9","block_type":"box","text":"Transfer Agent in writing.","page_number":158,"box":{"x":68,"y":90,"width":175,"height":11}},{"id":"bf4872f2-6b5b-49c2-8681-c3d173e4ee11","block_type":"box","text":"If the exchanging shareholder does not currently own shares of the investment portfolio whose shares are being","page_number":158,"box":{"x":102,"y":113,"width":800,"height":11}},{"id":"cceb072e-590e-425b-a913-c289cd3d0432","block_type":"box","text":"acquired, a new account will be established with the same registration, dividend and capital gain options and broker","page_number":158,"box":{"x":69,"y":128,"width":828,"height":11}},{"id":"c7d76d65-9efb-4caa-a9bf-9eb706b143ab","block_type":"box","text":"of record as the account from which shares are exchanged, unless otherwise specified in writing by the shareholder","page_number":158,"box":{"x":69,"y":143,"width":826,"height":11}},{"id":"1a2eafe6-4cd5-44e1-a21a-2caa2a3f3851","block_type":"box","text":"with all signatures guaranteed by an eligible guarantor institution as defined below. In order to participate in the","page_number":158,"box":{"x":68,"y":158,"width":797,"height":11}},{"id":"793d8d62-c2b5-4c2c-abcb-7f5c32450d82","block_type":"box","text":"Automatic Investment Program or establish a Systematic Withdrawal Plan for the new account, however, an","page_number":158,"box":{"x":68,"y":173,"width":763,"height":11}},{"id":"95134721-6a5e-4535-9c38-12068419a73e","block_type":"box","text":"exchanging shareholder must file a specific written request.","page_number":158,"box":{"x":69,"y":188,"width":424,"height":12}},{"id":"0aff2da8-2884-4bc4-9363-9de522dbd877","block_type":"box","text":"Any share exchange must satisfy the requirements relating to the minimum initial investment requirement, and","page_number":158,"box":{"x":101,"y":211,"width":790,"height":11}},{"id":"f5cdba2d-8415-4998-b814-4a112f0f2a6c","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":158,"box":{"x":69,"y":226,"width":808,"height":11}},{"id":"f2f0061b-3aae-452f-85ba-bdd5d89fb650","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":158,"box":{"x":69,"y":241,"width":771,"height":11}},{"id":"f0a7a0ab-a84e-41c4-b75f-a4ae2dac73c4","block_type":"box","text":"exchange request, shareholders should consult a tax or other financial adviser and should consider the investment","page_number":158,"box":{"x":69,"y":256,"width":819,"height":12}},{"id":"3ed86c1c-d124-4b66-8043-e6adb0b4334b","block_type":"box","text":"objective, policies and restrictions of the investment portfolio into which the shareholder is making an exchange.","page_number":158,"box":{"x":69,"y":271,"width":802,"height":12}},{"id":"cab80150-4842-4b9c-a689-ff73571babe4","block_type":"box","text":"Brokers may charge a fee for handling exchanges.","page_number":158,"box":{"x":70,"y":286,"width":354,"height":12}},{"id":"7382ceca-4353-402d-9703-d645e53ddd2f","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":158,"box":{"x":101,"y":309,"width":782,"height":11}},{"id":"2cf65b00-a365-4933-bf87-dc984a56ea6a","block_type":"box","text":"given to shareholders of any material modification or termination except where notice is not required. The Funds","page_number":158,"box":{"x":68,"y":324,"width":800,"height":12}},{"id":"6b463c6f-6c69-447f-882c-ae9bcefcd151","block_type":"box","text":"reserve the right to reject any telephone exchange request. Telephone exchanges may be subject to limitations as to","page_number":158,"box":{"x":69,"y":340,"width":831,"height":11}},{"id":"f672ceeb-a79a-414b-950e-1c4d9784bd38","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":158,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"6c358543-9bfc-4ce7-9046-b035c3bfae68","block_type":"box","text":"do not operate to the disadvantage of any portfolio or its shareholders.","page_number":158,"box":{"x":69,"y":370,"width":506,"height":11}},{"id":"48392a19-23d8-4e40-b72f-64b656d7830f","block_type":"box","text":"The Funds, the Administrators and BRIL will employ reasonable procedures to confirm that instructions","page_number":158,"box":{"x":101,"y":392,"width":733,"height":12}},{"id":"19be42a8-6874-4290-8bb5-0fff2d12ef3c","block_type":"box","text":"communicated by telephone are genuine. The Funds, the Administrators and BRIL will not be liable for any loss,","page_number":158,"box":{"x":69,"y":407,"width":793,"height":12}},{"id":"948649d8-6682-4392-bf77-63608cad37f5","block_type":"box","text":"liability, cost or expense for acting upon telephone instructions reasonably believed to be genuine in accordance with","page_number":158,"box":{"x":70,"y":423,"width":832,"height":11}},{"id":"55cf807e-31a3-4d09-bf58-43ba2bdbeac8","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":158,"box":{"x":69,"y":438,"width":785,"height":11}},{"id":"2621d390-27f6-4c4f-a372-340afb67881d","block_type":"box","text":"telephonic or written exchange instructions from any person representing himself to be the investor and believed by","page_number":158,"box":{"x":68,"y":453,"width":825,"height":11}},{"id":"eeb03cbc-ce91-4472-bb2f-f9a390d665e6","block_type":"box","text":"the Fund’s Transfer Agent to be genuine. The records of the Fund’s Transfer Agent pertaining to such instructions are","page_number":158,"box":{"x":68,"y":468,"width":837,"height":11}},{"id":"1812f49f-733d-47b6-9eaa-34817315b3ec","block_type":"box","text":"binding. The exchange privilege may be modified or terminated at any time upon 60 days’ notice to affected","page_number":158,"box":{"x":69,"y":483,"width":767,"height":11}},{"id":"992e922c-6585-4d77-bb74-e341f5815365","block_type":"box","text":"shareholders. The exchange privilege is only available in states where the exchange may legally be made.","page_number":158,"box":{"x":69,"y":498,"width":750,"height":11}},{"id":"9b902ea7-75ee-4cc3-b797-d73ad8ae91ed","block_type":"box","text":"Each Fund reserves the right to limit the number of times an investor may exercise the exchange privilege.","page_number":158,"box":{"x":102,"y":521,"width":757,"height":11}},{"id":"bfe2ac5d-c141-4321-85be-43c4a9ea5909","block_type":"box","text":"Certain Funds may suspend the continuous offering of their shares to the general public at any time and may resume","page_number":158,"box":{"x":69,"y":536,"width":837,"height":11}},{"id":"f3043a9a-5956-4404-9caf-c6eb83e30d20","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":158,"box":{"x":69,"y":551,"width":805,"height":11}},{"id":"859bc51f-205c-4edb-bee2-84ec3c66e0c5","block_type":"box","text":"exchange legally may be made. The exchange privilege may be applicable to other new mutual funds whose shares","page_number":158,"box":{"x":69,"y":566,"width":817,"height":11}},{"id":"9629b3cd-8e8b-4b4b-8793-a797bfc2da3c","block_type":"box","text":"may be distributed by the Distributor.","page_number":158,"box":{"x":69,"y":582,"width":262,"height":10}},{"id":"1efcab30-215b-4e26-bfdb-9bb8f4777fd7","block_type":"box","text":"Participation in Fee-Based Programs","page_number":158,"box":{"x":69,"y":612,"width":266,"height":11}},{"id":"a27ca2c2-892d-4548-8b7d-f1d65d81cf4c","block_type":"box","text":"If you participate in certain fee-based programs offered by BlackRock or an affiliate of BlackRock, or selected","page_number":158,"box":{"x":102,"y":634,"width":780,"height":12}},{"id":"b032f12c-3d13-47d7-b5f7-4d566b4a2b01","block_type":"box","text":"securities dealers or other financial intermediaries that have agreements with the Distributor or in certain fee-based","page_number":158,"box":{"x":69,"y":649,"width":826,"height":12}},{"id":"7852bab6-2069-4704-ad93-aeefc0f27a6d","block_type":"box","text":"programs in which BlackRock participates, you may be able to buy Institutional Shares, including by exchanges from","page_number":158,"box":{"x":70,"y":664,"width":825,"height":12}},{"id":"1605100b-903b-447b-8d5a-e01241d46834","block_type":"box","text":"other share classes. Sales charges on the shares being exchanged may be reduced or waived under certain","page_number":158,"box":{"x":69,"y":680,"width":770,"height":11}},{"id":"e48a6449-37a9-4732-8e83-61af3eb340f7","block_type":"box","text":"circumstances. You generally cannot transfer shares held through a fee-based program into another account. Instead,","page_number":158,"box":{"x":69,"y":695,"width":837,"height":11}},{"id":"a0ccbe4f-1ec9-4572-81ab-14ee44c2fbba","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":158,"box":{"x":70,"y":710,"width":808,"height":11}},{"id":"e25824d1-345a-4dfd-9c42-7367fd485dfb","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":158,"box":{"x":70,"y":725,"width":838,"height":11}},{"id":"bce50afc-69ec-482f-a671-7669388c584c","block_type":"box","text":"and you may pay any applicable sales charges or redemption fee. Please speak to your financial intermediary for","page_number":158,"box":{"x":69,"y":740,"width":804,"height":11}},{"id":"ff8410bb-4ea2-46c0-9ffe-1fb326e0c4c4","block_type":"box","text":"information about specific policies and procedures applicable to your account.","page_number":158,"box":{"x":70,"y":755,"width":555,"height":11}},{"id":"e0ffeff7-9217-4a7d-bdf2-f1546831f3ee","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":158,"box":{"x":102,"y":778,"width":788,"height":11}},{"id":"aeed8a9b-d207-4781-944b-75380c34a9d9","block_type":"box","text":"an account. In certain circumstances, when a shareholder chooses to continue to hold the shares, whatever share","page_number":158,"box":{"x":69,"y":793,"width":817,"height":10}},{"id":"749f4337-440c-476e-9ef7-6a71d3b05d26","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":158,"box":{"x":69,"y":808,"width":796,"height":11}},{"id":"6f78c4fe-4a06-422e-bd78-5d132bc70744","block_type":"box","text":"periods within the program may be subject to a fee upon redemption. Shareholders that held Investor A or","page_number":158,"box":{"x":70,"y":823,"width":754,"height":12}},{"id":"96f5bee9-99ee-4011-b9d8-e1d6f5b3cafc","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":158,"box":{"x":70,"y":838,"width":820,"height":12}},{"id":"36af9c05-a23e-4ef6-8b73-bb175b4557d0","block_type":"box","text":"Fund, but may be subject to upfront sales charges with respect to Investor A Shares. Additional purchases of","page_number":158,"box":{"x":70,"y":853,"width":777,"height":12}},{"id":"d49ab28f-0897-4dd7-aaac-19914dbab0c6","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":158,"box":{"x":70,"y":869,"width":791,"height":11}},{"id":"c9d47aa2-0a2a-46da-82c2-ae89c65c0301","block_type":"box","text":"eligible to purchase Institutional Shares. Please speak to your financial intermediary for more information.","page_number":158,"box":{"x":69,"y":884,"width":756,"height":11}},{"id":"33619b3e-8679-4614-b00f-6335c9c9ea1c","block_type":"box","text":"II-120","page_number":158,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"f456594d-e9e6-4ad9-8e22-80a37d64537c","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":158,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"942431ae-35d9-4af8-ac25-4b01b6ae3c91","block_type":"box","text":"Certain financial intermediaries may, in connection with a change in account type (for example, due to leaving a","page_number":159,"box":{"x":102,"y":45,"width":793,"height":11}},{"id":"8285d73e-5e3c-4975-af2c-c217c3a6390f","block_type":"box","text":"fee-based program or upon termination of the fee-based program) or otherwise in accordance with the financial","page_number":159,"box":{"x":68,"y":60,"width":791,"height":11}},{"id":"024115b0-5d61-4cf7-8c49-5d8d4639038a","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":159,"box":{"x":70,"y":75,"width":830,"height":11}},{"id":"dab10a88-88ac-478c-a3ea-54e4a8708134","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":159,"box":{"x":69,"y":90,"width":807,"height":11}},{"id":"dff90b93-011a-4ee6-8340-58a2c03c4ea8","block_type":"box","text":"eligibility requirements of the new share class. Please speak to your financial intermediary for information about","page_number":159,"box":{"x":69,"y":105,"width":801,"height":11}},{"id":"aa1321ea-8202-4a58-a378-bd74e71b99fc","block_type":"box","text":"specific policies and procedures applicable to your account.","page_number":159,"box":{"x":69,"y":120,"width":424,"height":11}},{"id":"6a4d8f39-ed90-4921-a8f8-a2a2e221968b","block_type":"box","text":"Details about the features of each fee-based program and the relevant charges, terms and conditions are","page_number":159,"box":{"x":102,"y":143,"width":752,"height":11}},{"id":"41bde0c9-c43a-4c93-80b8-57294ff58b91","block_type":"box","text":"included in the client agreement for each fee-based program and are available from your financial professional,","page_number":159,"box":{"x":70,"y":158,"width":789,"height":11}},{"id":"d809395a-975c-4f80-bcff-9a97097095ad","block_type":"box","text":"selected securities dealer or other financial intermediary. Please speak to your financial intermediary for more","page_number":159,"box":{"x":69,"y":173,"width":785,"height":11}},{"id":"a86d1046-0eb7-4832-b07f-2c267b4e1a4e","block_type":"box","text":"information.","page_number":159,"box":{"x":70,"y":188,"width":83,"height":9}},{"id":"eef1de07-7777-4272-8b2b-6423d2e6d858","block_type":"box","text":"Retirement and Education Savings Plans","page_number":159,"box":{"x":69,"y":219,"width":296,"height":11}},{"id":"4d424f7a-c286-404d-a512-da6d2de7cd2c","block_type":"box","text":"Individual retirement accounts and other retirement and education savings plans are available from your financial","page_number":159,"box":{"x":102,"y":241,"width":805,"height":11}},{"id":"b2ea7f57-aae6-41ff-8bbf-7ece0f6d222c","block_type":"box","text":"intermediary. Under these plans, investments may be made in a Fund (other than a Municipal Fund) and certain of","page_number":159,"box":{"x":70,"y":256,"width":815,"height":11}},{"id":"f2f166fc-87a9-4921-9d8b-33644a597a5f","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":159,"box":{"x":68,"y":271,"width":819,"height":12}},{"id":"22ba9081-330c-4133-9582-f50db1bcdea8","block_type":"box","text":"associated with investing through these plans. Information with respect to these plans is available on request from","page_number":159,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"d443278f-35ab-4da1-bde1-888a0529ef9b","block_type":"box","text":"your financial intermediary.","page_number":159,"box":{"x":68,"y":302,"width":191,"height":11}},{"id":"7eca8ec0-4a80-41e7-9e5c-1208e6b29a39","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":159,"box":{"x":102,"y":324,"width":796,"height":11}},{"id":"ac77d6d4-edb5-48a1-8c63-7fab74c56376","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":159,"box":{"x":68,"y":339,"width":784,"height":12}},{"id":"c0b30c19-f03a-4487-bad7-449f6e890842","block_type":"box","text":"distributed as well. Investors considering participation in any retirement or education savings plan should review","page_number":159,"box":{"x":69,"y":355,"width":801,"height":11}},{"id":"c7f7d0e6-f459-4ed8-8015-d85c4983912d","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":159,"box":{"x":69,"y":370,"width":753,"height":11}},{"id":"2d36147e-f91b-4ff9-a53d-4ac38c73efb4","block_type":"box","text":"establishment and maintenance of any such plan.","page_number":159,"box":{"x":69,"y":385,"width":354,"height":11}},{"id":"06e27d5e-c130-4e07-8789-daddc44f7a4a","block_type":"box","text":"Automatic Investment Plans","page_number":159,"box":{"x":68,"y":415,"width":207,"height":9}},{"id":"d377637b-99cf-4c70-9d8b-1a58daa3bf1a","block_type":"box","text":"Investor class shareholders and certain Service Share shareholders who were shareholders of the Compass","page_number":159,"box":{"x":102,"y":438,"width":773,"height":11}},{"id":"74fa55d7-7a97-4940-a563-5ae12331f832","block_type":"box","text":"Capital Group of Funds at the time of its combination with The PNC","page_number":159,"box":{"x":69,"y":453,"width":477,"height":11}},{"id":"3dfb0212-06da-413b-92c6-8bec0fd59cc7","block_type":"box","text":"®","page_number":159,"box":{"x":547,"y":453,"width":6,"height":5}},{"id":"b6a1810e-3b6e-4705-a5a2-0b15c99b390e","block_type":"box","text":"Fund in 1996 may arrange for periodic","page_number":159,"box":{"x":559,"y":453,"width":272,"height":11}},{"id":"ad4558e3-80b4-45c6-81fb-8d7259226a46","block_type":"box","text":"investments in that Fund through automatic deductions from a checking or savings account. The minimum pre","page_number":159,"box":{"x":70,"y":468,"width":787,"height":11}},{"id":"ee889493-d8b8-4239-b897-ab7f8313fa1e","block_type":"box","text":"authorized investment amount is $50. If you buy shares of a Fund through certain accounts, no minimum charge to","page_number":159,"box":{"x":69,"y":482,"width":822,"height":12}},{"id":"7571b8fa-e2ce-41cc-bbeb-2502422a273a","block_type":"box","text":"your bank account is required. Contact your financial adviser or other financial intermediary for more information.","page_number":159,"box":{"x":68,"y":498,"width":805,"height":11}},{"id":"532d7928-aebb-4d88-b7ba-2331d1598a33","block_type":"box","text":"Automatic Dividend Reinvestment Plan","page_number":159,"box":{"x":68,"y":529,"width":285,"height":8}},{"id":"f1e7c756-a225-4d73-8dd8-4360bcff0afb","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":159,"box":{"x":102,"y":551,"width":782,"height":11}},{"id":"947efbf1-7d0f-48d8-b0a2-7a4e0a001553","block_type":"box","text":"shareholders. All distributions are automatically reinvested at NAV in the form of additional full and fractional shares","page_number":159,"box":{"x":69,"y":566,"width":828,"height":11}},{"id":"2d01cd39-fe7b-4618-9dbc-1ee1f31c5a09","block_type":"box","text":"of the same class of shares of the relevant Fund unless a shareholder elects otherwise or as otherwise set forth in a","page_number":159,"box":{"x":69,"y":581,"width":839,"height":9}},{"id":"e1955ade-fb21-410a-ae6e-4633562ea517","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":159,"box":{"x":70,"y":596,"width":822,"height":12}},{"id":"b9d09f02-b98d-41e9-abca-2b5a01120b2e","block_type":"box","text":"become effective with respect to dividends paid after its receipt by the Transfer Agent.","page_number":159,"box":{"x":69,"y":612,"width":614,"height":11}},{"id":"7265bf54-7742-4b2a-8b1a-c1e3a619b296","block_type":"box","text":"Systematic Withdrawal Plans","page_number":159,"box":{"x":68,"y":642,"width":214,"height":11}},{"id":"d58e52ae-2292-4713-a2e6-a873420772cb","block_type":"box","text":"Shareholders may receive regular distributions from their accounts via a Systematic Withdrawal Plan (“SWP”).","page_number":159,"box":{"x":102,"y":664,"width":780,"height":12}},{"id":"aee10dc1-e4d1-4407-b925-b9aa47887f06","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":159,"box":{"x":70,"y":679,"width":742,"height":12}},{"id":"8d052dba-2dd0-4e10-aec0-7f641b5d96f7","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":159,"box":{"x":69,"y":694,"width":834,"height":12}},{"id":"acc331a5-1a7a-4314-8075-79ad5921dc95","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":159,"box":{"x":68,"y":710,"width":823,"height":11}},{"id":"38026edb-837f-4f93-8bb0-ca3b2d8e7893","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":159,"box":{"x":69,"y":725,"width":840,"height":11}},{"id":"c2f58c92-a5e9-426e-8a2b-ecad434780f6","block_type":"box","text":"by completing the Systematic Withdrawal Plan Application Form which may be obtained by visiting our website at","page_number":159,"box":{"x":69,"y":740,"width":800,"height":11}},{"id":"29e849ec-54b5-4107-a3a6-f0cd0f2c091b","block_type":"box","text":"www.blackrock.com.","page_number":159,"box":{"x":68,"y":755,"width":142,"height":9}},{"id":"b008947e-ff3b-47c9-905f-2e8b5c740718","block_type":"box","text":"Shareholders should realize that if withdrawals exceed income dividends their invested principal in the account","page_number":159,"box":{"x":102,"y":778,"width":789,"height":11}},{"id":"2b7f4acd-ddf7-4b2b-bd12-cd0d6f7f18bc","block_type":"box","text":"will be depleted. To participate in the SWP, shareholders must have their dividends automatically reinvested.","page_number":159,"box":{"x":68,"y":793,"width":774,"height":11}},{"id":"a2eb1370-d436-4784-9a10-48299446ed20","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":159,"box":{"x":69,"y":808,"width":815,"height":11}},{"id":"63646391-3446-405b-8ff8-9929d3d33534","block_type":"box","text":"(800) 441-7762. Purchases of additional Investor A or Investor P Shares of the Fund concurrently with withdrawals","page_number":159,"box":{"x":69,"y":823,"width":817,"height":11}},{"id":"c2b71a4c-817a-4599-ade6-5c1f2c358897","block_type":"box","text":"may be disadvantageous to investors because of the sales charges involved and, therefore, are discouraged. No","page_number":159,"box":{"x":69,"y":838,"width":803,"height":12}},{"id":"ae2c3c5e-5b5a-464f-96c7-37cab1d572cf","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":159,"box":{"x":69,"y":853,"width":820,"height":12}},{"id":"988579e2-13a5-41f7-bc66-80dc116f0177","block_type":"box","text":"original investment on an annualized basis. For example, monthly, quarterly and semi-annual SWP redemptions of","page_number":159,"box":{"x":69,"y":869,"width":810,"height":11}},{"id":"d0f2d29d-af9d-4afb-a2a6-3132bfa188dc","block_type":"box","text":"II-121","page_number":159,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"3fa5ae4a-347d-4a12-aea7-83634b5628f2","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":159,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3035d2cc-ef4d-4aca-b4e4-d4a530dce43b","block_type":"box","text":"Investor C Shares will not be subject to the CDSC if they do not exceed 1% (monthly), 3% (quarterly) and 6% (semi","page_number":160,"box":{"x":70,"y":45,"width":816,"height":11}},{"id":"52308e2b-dcb0-4489-871c-1f8b2f3790c1","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":160,"box":{"x":69,"y":60,"width":840,"height":11}},{"id":"79c6dd2b-5b88-42c6-8ac3-549349320390","block_type":"box","text":"of this limit are still subject to the applicable CDSC.","page_number":160,"box":{"x":69,"y":75,"width":367,"height":11}},{"id":"3010b264-c7a9-4612-a8d6-b8bb1c4b57ee","block_type":"box","text":"For this reason, a shareholder may not participate in the Automatic Investment Plan described above (see “How","page_number":160,"box":{"x":102,"y":98,"width":798,"height":11}},{"id":"75e44e16-0ae8-42a0-8b53-31111feaa800","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":160,"box":{"x":68,"y":113,"width":834,"height":11}},{"id":"99ad159a-45d1-4708-b43e-2fc1fdf93292","block_type":"box","text":"Prospectus) and the SWP at the same time.","page_number":160,"box":{"x":69,"y":128,"width":311,"height":11}},{"id":"637037d8-1311-48c2-a059-84ac930ebdc3","block_type":"box","text":"Dividend Allocation Plan","page_number":160,"box":{"x":69,"y":158,"width":176,"height":9}},{"id":"656ea213-6591-47f6-bc2b-0a028625db11","block_type":"box","text":"The Dividend Allocation Plan, as applicable, allows shareholders to elect to have all their dividends and any other","page_number":160,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"55df5706-559c-4ebc-a8d3-8806c40f4ffc","block_type":"box","text":"distributions from any Eligible Fund (which means funds so designated by the Distributor from time to time)","page_number":160,"box":{"x":69,"y":196,"width":763,"height":11}},{"id":"2a3f14cf-7dba-4053-8911-65dd5be271c5","block_type":"box","text":"automatically invested at NAV in one other such Eligible Fund designated by the shareholder, provided the account","page_number":160,"box":{"x":69,"y":211,"width":814,"height":11}},{"id":"0340c401-d8ea-40ab-97e1-dce0d5ed8589","block_type":"box","text":"into which the dividends and distributions are directed is initially funded with the requisite minimum amount.","page_number":160,"box":{"x":70,"y":226,"width":771,"height":11}},{"id":"95ceb41e-95ad-494f-9e38-7cc30bfcb6f3","block_type":"box","text":"PRICING OF SHARES","page_number":160,"box":{"x":406,"y":256,"width":167,"height":9}},{"id":"02eca3f6-762b-4880-9f02-62192b6aabb5","block_type":"box","text":"Determination of Net Asset Value","page_number":160,"box":{"x":69,"y":286,"width":243,"height":9}},{"id":"c0db6c2a-5f68-49c5-9f38-42c0cc43964d","block_type":"box","text":"Valuation of Shares.","page_number":160,"box":{"x":101,"y":309,"width":145,"height":9}},{"id":"344ebb5a-9e92-4d48-bf8d-89e30aaeafe1","block_type":"box","text":"The NAV for each class of shares of each Fund is generally calculated as of the close of","page_number":160,"box":{"x":252,"y":309,"width":626,"height":11}},{"id":"29776102-47c0-4c5b-8296-37f14d428977","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":160,"box":{"x":69,"y":324,"width":785,"height":11}},{"id":"b7ac319f-b60b-4e37-b86a-40653fbc5c00","block_type":"box","text":"Valuation of assets held by a Fund is as follows:","page_number":160,"box":{"x":68,"y":339,"width":343,"height":11}},{"id":"20020ff8-50aa-4405-a73e-77a0cb257591","block_type":"box","text":"Equity Investments.","page_number":160,"box":{"x":102,"y":362,"width":143,"height":11}},{"id":"da2eadb5-7117-4fd4-8c43-96b1dfdfd3dd","block_type":"box","text":"Equity securities traded on a recognized securities exchange (","page_number":160,"box":{"x":252,"y":362,"width":439,"height":11}},{"id":"a2f8e177-6207-46c4-8a27-ff027ba2d948","block_type":"box","text":"e.g.","page_number":160,"box":{"x":693,"y":363,"width":25,"height":10}},{"id":"acebf87f-504e-4e9e-acff-8cfc002e85f1","block_type":"box","text":", NYSE), on separate","page_number":160,"box":{"x":720,"y":362,"width":147,"height":11}},{"id":"7fcc6415-936a-4132-b442-8bf9e4a1ccb4","block_type":"box","text":"trading boards of a securities exchange or through a market system that provides contemporaneous transaction","page_number":160,"box":{"x":68,"y":377,"width":799,"height":11}},{"id":"89f1687d-6711-4df4-a29a-23ee2745433b","block_type":"box","text":"pricing information (each, an “Exchange”) are valued using information obtained via independent pricing services,","page_number":160,"box":{"x":70,"y":392,"width":808,"height":11}},{"id":"06bf3049-e71c-4259-9c6a-9ab3f7496ddf","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":160,"box":{"x":68,"y":407,"width":820,"height":11}},{"id":"e25096a5-9dc2-4af9-aaf2-8a35c9ef8544","block_type":"box","text":"Exchange prior to the time as of which the assets or liabilities are valued. However, under certain circumstances,","page_number":160,"box":{"x":70,"y":422,"width":805,"height":11}},{"id":"1fa5bf13-8f1b-4a07-9847-c72cd6e7023a","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":160,"box":{"x":69,"y":437,"width":793,"height":11}},{"id":"b521caf1-eb04-48d2-b703-953d0a8a08ba","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":160,"box":{"x":70,"y":452,"width":836,"height":11}},{"id":"f93ee051-37d0-48de-8ae0-2962eff7219e","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":160,"box":{"x":68,"y":468,"width":815,"height":11}},{"id":"0b2affb7-c7b4-47ec-8ace-dcb21a5eb6b0","block_type":"box","text":"last bid (long positions) or ask (short positions) price, if available, will be used as the value of such security. If a Fund","page_number":160,"box":{"x":70,"y":482,"width":837,"height":12}},{"id":"f07a6f8c-08ab-47c9-b67f-d17c56463c68","block_type":"box","text":"holds both long and short positions in the same security, the last bid price will be applied to securities held long and","page_number":160,"box":{"x":69,"y":498,"width":832,"height":11}},{"id":"62a7c47f-eb6a-4e2b-b2f5-dccc60b66dda","block_type":"box","text":"the last ask price will be applied to securities sold short. If no bid or ask price is available on a day on which a Fund","page_number":160,"box":{"x":68,"y":513,"width":828,"height":11}},{"id":"99784aeb-3f37-419b-902e-429d27a8429c","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":160,"box":{"x":68,"y":528,"width":819,"height":11}},{"id":"dac51115-4629-47e1-b65e-5417e2123c28","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":160,"box":{"x":70,"y":543,"width":798,"height":11}},{"id":"13114cca-dd30-4733-9a2c-39e0f5168e36","block_type":"box","text":"defined below).","page_number":160,"box":{"x":69,"y":558,"width":106,"height":11}},{"id":"15464323-4ec8-4692-a2f4-ad4ab23254ac","block_type":"box","text":"Fixed-Income Investments.","page_number":160,"box":{"x":102,"y":581,"width":194,"height":9}},{"id":"d001bb87-20e7-43ed-942a-88831cb8fcc1","block_type":"box","text":"Fixed-income securities are generally valued using prices provided by dealers or","page_number":160,"box":{"x":304,"y":581,"width":565,"height":11}},{"id":"9eb98be7-761c-4fce-98ff-2d7114a127a1","block_type":"box","text":"prices (including evaluated prices) supplied by the Fund’s approved independent third-party pricing services, each in","page_number":160,"box":{"x":70,"y":596,"width":825,"height":11}},{"id":"ac8f4bc1-06c9-4297-b6d1-6a45347456fc","block_type":"box","text":"accordance with the Valuation Procedures. The pricing services may use valuation models that utilize certain inputs","page_number":160,"box":{"x":69,"y":611,"width":823,"height":11}},{"id":"af42558d-0359-4292-ba90-f5d7bda7cfb1","block_type":"box","text":"and assumptions to derive values, including transaction data (","page_number":160,"box":{"x":69,"y":626,"width":443,"height":11}},{"id":"92238970-5a5f-410d-a125-8b07231dcae3","block_type":"box","text":"e.g.","page_number":160,"box":{"x":514,"y":628,"width":24,"height":9}},{"id":"08982609-5f85-49f0-904b-6c32814c88bd","block_type":"box","text":", recent representative bids and offers), credit","page_number":160,"box":{"x":541,"y":626,"width":328,"height":11}},{"id":"52a7d293-399b-4aab-9968-1e5a346d8b8c","block_type":"box","text":"quality information, perceived market movements, news, and other relevant information and by other methods, which","page_number":160,"box":{"x":69,"y":641,"width":834,"height":11}},{"id":"43d1fdd1-7c04-45f8-a4c8-2a2bab490a5a","block_type":"box","text":"may include consideration of: yields or prices of securities of comparable quality, coupon, maturity and type;","page_number":160,"box":{"x":69,"y":656,"width":769,"height":11}},{"id":"e8c16bca-03e2-43db-adeb-a0f498548e64","block_type":"box","text":"indications as to values from dealers; general market conditions; and/or other factors and assumptions. Pricing","page_number":160,"box":{"x":70,"y":671,"width":797,"height":12}},{"id":"c03edad2-e004-45ef-843a-f3b8b15dafa8","block_type":"box","text":"services generally value fixed-income securities assuming orderly transactions of an institutional round lot size, but","page_number":160,"box":{"x":69,"y":686,"width":821,"height":12}},{"id":"6d252ab3-4a5c-4091-82fe-1e66be5ceac7","block_type":"box","text":"the Fund may hold or transact in such securities in smaller, odd lot sizes. Odd lots of securities in certain asset","page_number":160,"box":{"x":68,"y":702,"width":798,"height":11}},{"id":"72ddafcb-c1c8-4e97-b58d-4f34963cbf53","block_type":"box","text":"classes may trade at lower prices than institutional round lots, and the value ultimately realized when the securities","page_number":160,"box":{"x":69,"y":717,"width":825,"height":11}},{"id":"268c1fff-fef1-4f26-a41a-4314c411ed9a","block_type":"box","text":"are sold could differ from the prices used by a Fund. The amortized cost method of valuation may be used with","page_number":160,"box":{"x":69,"y":732,"width":791,"height":11}},{"id":"bb10eb1d-c337-494a-b470-37b3ee7011bb","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":160,"box":{"x":69,"y":747,"width":814,"height":11}},{"id":"fa8147da-5381-4f37-aea4-15ab0944becd","block_type":"box","text":"value. Certain fixed-income investments, including asset-backed and mortgage related securities, may be valued","page_number":160,"box":{"x":68,"y":762,"width":802,"height":11}},{"id":"b9be73d4-f46f-4cd1-aaa4-7bb65360f39f","block_type":"box","text":"based on valuation models that consider the estimated cash flows of each tranche of the issuer, establish a","page_number":160,"box":{"x":69,"y":777,"width":773,"height":11}},{"id":"96b4c9fb-fb62-4d31-9ec9-b1708e5d7f2d","block_type":"box","text":"benchmark yield and develop an estimated tranche specific spread to the benchmark yield based on the unique","page_number":160,"box":{"x":69,"y":792,"width":795,"height":12}},{"id":"3fea7fea-8b63-4bee-bd43-0fd8a4590a0c","block_type":"box","text":"attributes of the tranche.","page_number":160,"box":{"x":69,"y":807,"width":176,"height":9}},{"id":"9fd5ea05-8272-4bb2-ad5f-c1f3c991d788","block_type":"box","text":"Options, Futures, Swaps and Other Derivatives.","page_number":160,"box":{"x":101,"y":830,"width":344,"height":11}},{"id":"b7c597b8-6faf-4cbb-84d0-e7c36e7ffbf8","block_type":"box","text":"Exchange-traded equity options (except ETF options, equity","page_number":160,"box":{"x":453,"y":830,"width":416,"height":11}},{"id":"ae18dc6f-75d3-4deb-9c31-e9bac7367bcd","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":160,"box":{"x":70,"y":845,"width":829,"height":11}},{"id":"fecf57b7-ce1f-44e2-af33-31cbac325b36","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":160,"box":{"x":69,"y":860,"width":824,"height":12}},{"id":"82d5072d-d42a-45e7-8507-c615dfcc4337","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":160,"box":{"x":68,"y":875,"width":838,"height":12}},{"id":"b0ff1e1a-400d-46d2-b974-6ce5fd6bc08c","block_type":"box","text":"the Fund values such option, the last bid (long positions) or ask (short positions) price, if available, will be used as","page_number":160,"box":{"x":68,"y":891,"width":820,"height":11}},{"id":"e527d18c-3887-4bed-98ec-91590dd9ccef","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":160,"box":{"x":68,"y":906,"width":808,"height":11}},{"id":"44741095-f72f-4f3c-9507-4d5c234f7d63","block_type":"box","text":"II-122","page_number":160,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"3e174b30-acf3-489f-95c7-975429f0e0c9","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":160,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7dadcbf2-fbdc-4c5f-9264-43821823e385","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":161,"box":{"x":69,"y":45,"width":824,"height":11}},{"id":"c8994c97-d609-4075-9277-53ffa7465e2a","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":161,"box":{"x":68,"y":60,"width":789,"height":11}},{"id":"650c0dda-5186-4955-9a4f-c145801bf61e","block_type":"box","text":"options, ETF options, equity index options and OTC derivatives, may be valued using a mathematical model which","page_number":161,"box":{"x":69,"y":75,"width":807,"height":11}},{"id":"3fb4884e-43c3-4ec9-80da-81edbcd94d05","block_type":"box","text":"may incorporate a number of market data factors. Financial futures contracts and options thereon, which are traded","page_number":161,"box":{"x":69,"y":90,"width":824,"height":11}},{"id":"56c6a246-1728-4d16-aaa0-12b077fcbb95","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":161,"box":{"x":69,"y":105,"width":833,"height":11}},{"id":"94439ecf-e73a-42c3-ba85-0326f769d392","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":161,"box":{"x":69,"y":120,"width":830,"height":12}},{"id":"9f31fdb6-759d-4bbb-83bd-ea681bff370e","block_type":"box","text":"accordance with the Valuation Procedures.","page_number":161,"box":{"x":69,"y":136,"width":301,"height":8}},{"id":"08aec7c9-5424-453f-9773-a23ff645c42d","block_type":"box","text":"Underlying Funds.","page_number":161,"box":{"x":102,"y":158,"width":128,"height":11}},{"id":"2baff1a5-0956-408c-977b-e47174e29e2d","block_type":"box","text":"Shares of underlying open-end funds that are not traded on an exchange (including money","page_number":161,"box":{"x":237,"y":158,"width":640,"height":11}},{"id":"e9ba57c3-5cb4-4885-a987-aa877697e440","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":161,"box":{"x":69,"y":173,"width":830,"height":11}},{"id":"d77e624c-9c52-4ab3-85fa-146d362e04da","block_type":"box","text":"at their most recent closing price.","page_number":161,"box":{"x":69,"y":188,"width":238,"height":12}},{"id":"2883ce5f-7f2a-4188-93d2-258c40e60c1a","block_type":"box","text":"General Valuation Information.","page_number":161,"box":{"x":101,"y":211,"width":220,"height":9}},{"id":"4b953745-ae61-4070-8adf-97b4ea55852d","block_type":"box","text":"Prices obtained from independent third-party pricing services, broker-dealers or","page_number":161,"box":{"x":328,"y":211,"width":564,"height":11}},{"id":"29c1a1a4-8287-438b-9af0-302b38c3e380","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":161,"box":{"x":69,"y":226,"width":831,"height":9}},{"id":"6a46dcf5-93b6-4dba-9358-633ef4565812","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":161,"box":{"x":68,"y":241,"width":828,"height":11}},{"id":"04d47a98-2e29-4984-82e2-7e6b38965b1f","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":161,"box":{"x":69,"y":257,"width":829,"height":11}},{"id":"aade121d-4548-45bf-b854-2346c77f963a","block_type":"box","text":"applied prospectively. Such determination will be made considering pertinent facts and circumstances surrounding","page_number":161,"box":{"x":69,"y":271,"width":817,"height":12}},{"id":"b44555d4-b3b3-4a2e-acbe-5b332fa95f0d","block_type":"box","text":"the revision.","page_number":161,"box":{"x":68,"y":287,"width":87,"height":9}},{"id":"c6a911f4-74c6-4c7d-a207-4aec3d7ebb8a","block_type":"box","text":"In determining the market value of portfolio investments, the Fund may employ independent third-party pricing","page_number":161,"box":{"x":102,"y":309,"width":784,"height":11}},{"id":"12538d79-3dda-4467-8a0a-37746ce183b7","block_type":"box","text":"services, which may use, without limitation, evaluated pricing methods that take into consideration market indexes,","page_number":161,"box":{"x":69,"y":325,"width":823,"height":11}},{"id":"20f1ce0d-d51e-4f9b-8f12-4cc48901e467","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":161,"box":{"x":69,"y":339,"width":818,"height":12}},{"id":"c9949cea-d083-487f-990b-b4e08ef2a62c","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":161,"box":{"x":70,"y":355,"width":832,"height":11}},{"id":"ec268eff-b4bd-417d-bb71-8a9510d67a0c","block_type":"box","text":"price the Fund could receive upon the sale of any particular portfolio investment may differ from the Fund’s valuation","page_number":161,"box":{"x":70,"y":370,"width":832,"height":11}},{"id":"dbe6b709-6b41-4ea0-ab42-6f887c18a273","block_type":"box","text":"of the investment, particularly for assets that trade in thin or volatile markets or that are valued using a fair valuation","page_number":161,"box":{"x":69,"y":385,"width":834,"height":11}},{"id":"0543dfe4-8407-4b56-89fc-aff4a3742257","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":161,"box":{"x":69,"y":400,"width":837,"height":11}},{"id":"93c27d51-209d-4bd5-b872-dc76e06b33e0","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":161,"box":{"x":70,"y":415,"width":833,"height":11}},{"id":"029447b9-f148-411c-899e-685207e0c419","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":161,"box":{"x":69,"y":430,"width":827,"height":11}},{"id":"c7bd25fe-6a4f-4cfb-a8ba-906a173043c1","block_type":"box","text":"impacted by technological issues and/or errors by pricing services or other third-party service providers.","page_number":161,"box":{"x":70,"y":446,"width":741,"height":11}},{"id":"42698946-d3ff-4530-b0c2-d1dd62925899","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":161,"box":{"x":102,"y":468,"width":800,"height":11}},{"id":"919f9c0c-a767-4f38-a2a5-85536f3188f5","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":161,"box":{"x":69,"y":483,"width":811,"height":11}},{"id":"81209923-bda1-4f8c-ac8e-d100f462acd2","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":161,"box":{"x":69,"y":498,"width":827,"height":11}},{"id":"55eebc4f-3424-4e95-a556-7b2b8875aaaf","block_type":"box","text":"value. All other assets and liabilities (including securities for which market quotations are not readily available) held","page_number":161,"box":{"x":68,"y":513,"width":824,"height":12}},{"id":"8968020e-7ffe-4c73-a183-f0f53623b12d","block_type":"box","text":"by a Fund (including restricted securities and private market investments, as applicable) are valued at fair value as","page_number":161,"box":{"x":69,"y":528,"width":817,"height":12}},{"id":"cdaa3334-dfb2-45f2-8e36-16c1c19ff900","block_type":"box","text":"determined in good faith by BlackRock pursuant to the Valuation Procedures. Any assets and liabilities which are","page_number":161,"box":{"x":69,"y":543,"width":802,"height":12}},{"id":"0ea32adc-5bb4-4819-98d1-8ca713c0d6c0","block_type":"box","text":"denominated in a foreign currency are translated into U.S. dollars at the prevailing market rates.","page_number":161,"box":{"x":69,"y":559,"width":685,"height":11}},{"id":"fe1ea3bd-5680-4092-881e-600d0d6d82c6","block_type":"box","text":"Certain of the securities acquired by the Funds may be traded on foreign exchanges or OTC markets on days on","page_number":161,"box":{"x":102,"y":581,"width":795,"height":12}},{"id":"2c7be09d-eac2-4381-be18-ad7e79dbc7e5","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":161,"box":{"x":68,"y":596,"width":805,"height":12}},{"id":"0d914617-07dd-41a4-ac81-5e024bf5651c","block_type":"box","text":"days when investors can neither purchase nor redeem shares of the Fund.","page_number":161,"box":{"x":69,"y":612,"width":529,"height":11}},{"id":"72cc64da-f03a-4f3f-b61c-c9337e1ee57b","block_type":"box","text":"Fair Value.","page_number":161,"box":{"x":102,"y":634,"width":74,"height":9}},{"id":"6eed82bb-24ae-482f-966c-61a14eb5fc13","block_type":"box","text":"When market quotations are not readily available or are believed by BlackRock to be unreliable, a","page_number":161,"box":{"x":183,"y":634,"width":693,"height":11}},{"id":"50a292c0-c28d-494a-9fd1-8c051d6dd180","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":161,"box":{"x":70,"y":649,"width":785,"height":12}},{"id":"fa1c16ab-637a-4878-a250-e69f6ae07679","block_type":"box","text":"accordance with the Valuation Procedures. Pursuant to Rule 2a-5 under the Investment Company Act, the Board of","page_number":161,"box":{"x":69,"y":664,"width":816,"height":12}},{"id":"31662286-5d30-4965-8adb-fa4d9d65cf20","block_type":"box","text":"Directors has designated BlackRock as the valuation designee for the respective Funds for which it serves as","page_number":161,"box":{"x":70,"y":680,"width":779,"height":11}},{"id":"e4b9168c-f449-4299-ab4e-8203dd48c306","block_type":"box","text":"investment adviser. BlackRock may reasonably conclude that a market quotation is not readily available or is","page_number":161,"box":{"x":70,"y":695,"width":773,"height":11}},{"id":"fd8e0fc8-a746-4220-befd-1cf1fc4b3ad9","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":161,"box":{"x":69,"y":710,"width":772,"height":11}},{"id":"020fd1a1-b2f0-4f87-bab6-86117b74ca18","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":161,"box":{"x":69,"y":725,"width":826,"height":11}},{"id":"f278832b-de3a-4eae-a9e4-941a01a93784","block_type":"box","text":"(","page_number":161,"box":{"x":69,"y":740,"width":3,"height":11}},{"id":"e77f5310-1bd6-4a75-a024-c5ed17064d08","block_type":"box","text":"e.g.","page_number":161,"box":{"x":74,"y":742,"width":25,"height":9}},{"id":"dd73f45a-7e9f-4f68-a672-a24a836f12bb","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":161,"box":{"x":101,"y":740,"width":806,"height":11}},{"id":"5d9cd666-bacd-4ad8-9a88-c9e5b7627565","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":161,"box":{"x":69,"y":755,"width":813,"height":11}},{"id":"9841dfcf-1dae-4b85-bc52-001e5754be09","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":161,"box":{"x":68,"y":770,"width":837,"height":12}},{"id":"c4adeb6d-40c1-4ff1-9ae9-100e0c6e8aec","block_type":"box","text":"purpose, a “significant event” is deemed to occur if BlackRock determines, in its reasonable business judgment, that","page_number":161,"box":{"x":70,"y":785,"width":838,"height":12}},{"id":"e72aefa8-26db-449a-858e-02ad80f52176","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":161,"box":{"x":69,"y":801,"width":824,"height":11}},{"id":"f6650852-23c6-4535-924b-62805e6398f1","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":161,"box":{"x":69,"y":816,"width":828,"height":11}},{"id":"75441bdc-c0dc-4939-ab3e-f6056ac67f3c","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":161,"box":{"x":69,"y":831,"width":793,"height":11}},{"id":"8e46a930-9581-4097-8856-751bb633da37","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":161,"box":{"x":70,"y":846,"width":819,"height":11}},{"id":"1b2dbd92-0f90-4e40-b7ff-fc4292b5d703","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":161,"box":{"x":68,"y":861,"width":810,"height":11}},{"id":"e9060482-ba28-41e5-b423-fed6581884a9","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":161,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"36416fd9-fad0-4e61-8a74-57c415ab803d","block_type":"box","text":"be treated as a Fair Value Asset. For certain foreign assets, a third-party vendor supplies evaluated, systematic fair","page_number":161,"box":{"x":69,"y":891,"width":822,"height":12}},{"id":"dfaef01a-b284-4fe5-866b-8de9bd8b70a5","block_type":"box","text":"value pricing based upon the movement of a proprietary multi-factor model after the relevant foreign markets have","page_number":161,"box":{"x":68,"y":906,"width":814,"height":12}},{"id":"1f513747-fc81-498a-9238-df5d2d575c60","block_type":"box","text":"II-123","page_number":161,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"5216ac52-7b27-4dd4-8ff6-e249c6b1e8b7","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":161,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4745a485-7769-4374-be3f-4f89189c993d","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":162,"box":{"x":69,"y":45,"width":827,"height":11}},{"id":"1cd29027-886b-4e12-af17-3c57924dbe8b","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":162,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"2fae5f4b-9569-43f7-b7e5-63272840650b","block_type":"box","text":"pricing time.","page_number":162,"box":{"x":70,"y":75,"width":85,"height":11}},{"id":"93452695-eb7d-497f-8ec9-a7df048a1409","block_type":"box","text":"BlackRock’s Rule 2a-5 Committee is responsible for reviewing and approving methodologies by investment type","page_number":162,"box":{"x":102,"y":98,"width":794,"height":11}},{"id":"3bbf24f4-bd44-4527-901a-f7a2a8d59f7b","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":162,"box":{"x":69,"y":113,"width":829,"height":11}},{"id":"355b2f36-ae12-46d5-a504-ca4dd1a67216","block_type":"box","text":"assists BlackRock by periodically endeavoring to confirm the prices it receives from all third-party pricing services,","page_number":162,"box":{"x":69,"y":128,"width":813,"height":11}},{"id":"ac8e7662-dc3b-47ce-872a-abc2c3d58843","block_type":"box","text":"index providers and broker-dealers. BlackRock regularly evaluates the values assigned to the securities and other","page_number":162,"box":{"x":70,"y":143,"width":808,"height":11}},{"id":"26fcbba5-acc0-4107-ae43-d6d7e659438d","block_type":"box","text":"assets and liabilities of the Funds.","page_number":162,"box":{"x":69,"y":158,"width":245,"height":9}},{"id":"c2054464-909a-4502-b9ad-04dc98a9b593","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":162,"box":{"x":101,"y":181,"width":795,"height":11}},{"id":"8eb73ea8-0353-4b3c-a662-ae70dc242e28","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":162,"box":{"x":69,"y":196,"width":832,"height":11}},{"id":"f8b506d0-d1d6-440a-af54-70493b1b5971","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":162,"box":{"x":69,"y":211,"width":805,"height":11}},{"id":"8c24d8ae-a263-41d6-a241-ea0978082ffa","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":162,"box":{"x":69,"y":226,"width":834,"height":11}},{"id":"2ceee7f5-516b-4f0d-8f3c-05be502b39c2","block_type":"box","text":"determinations will be based upon all available factors that BlackRock deems relevant at the time of the","page_number":162,"box":{"x":69,"y":241,"width":744,"height":11}},{"id":"63aa8014-6ffc-41d0-bb6f-f6738f608ef0","block_type":"box","text":"determination, and may be based on analytical values determined by BlackRock using proprietary or third-party","page_number":162,"box":{"x":69,"y":257,"width":791,"height":11}},{"id":"2581bdb8-d7cf-45c7-8646-711f611cd106","block_type":"box","text":"valuation models.","page_number":162,"box":{"x":68,"y":272,"width":125,"height":8}},{"id":"e11dccf7-4320-499f-90f5-e3b3da34616b","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":162,"box":{"x":102,"y":294,"width":785,"height":11}},{"id":"3fcce2d9-e138-48f6-b86b-3d47216e61fc","block_type":"box","text":"value of an investment, one or more fair value methodologies may be used (depending on certain factors, including","page_number":162,"box":{"x":68,"y":309,"width":822,"height":11}},{"id":"e9088c98-a8aa-4f54-b42f-2bf9646b1a50","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":162,"box":{"x":68,"y":324,"width":820,"height":12}},{"id":"9b4d8c1e-7a3c-4605-a28e-f6116f6565fa","block_type":"box","text":"alternatively, using proprietary or third-party models that may rely upon one or more unobservable inputs. Prices of","page_number":162,"box":{"x":69,"y":339,"width":818,"height":12}},{"id":"dfc4f858-da16-41b8-9cea-a7ac9bc176b6","block_type":"box","text":"actual, executed or historical transactions in the relevant investment (or comparable instruments) or, where","page_number":162,"box":{"x":69,"y":355,"width":766,"height":11}},{"id":"82423e48-e768-4ac5-ad40-d01e7f9d40ee","block_type":"box","text":"appropriate, an appraisal by a third-party experienced in the valuation of similar instruments, may also be used as a","page_number":162,"box":{"x":69,"y":370,"width":828,"height":11}},{"id":"ebf5eef7-0237-45bd-a87f-112cb7fb4285","block_type":"box","text":"basis for establishing the fair value of an investment.","page_number":162,"box":{"x":69,"y":385,"width":378,"height":11}},{"id":"1fea502a-4915-4245-8c3f-09e41f733a28","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":162,"box":{"x":101,"y":407,"width":784,"height":12}},{"id":"80bbe88e-781b-4720-91a1-ea65829ea88e","block_type":"box","text":"liabilities could have been sold during the period in which the particular fair values were used in determining a Fund’s","page_number":162,"box":{"x":70,"y":423,"width":836,"height":11}},{"id":"7b0ba5a2-96f0-45c1-98b8-3f38e7f66526","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":162,"box":{"x":70,"y":438,"width":834,"height":11}},{"id":"524366d3-5437-42f5-aeee-febc23bd3812","block_type":"box","text":"fair value, may have the effect of diluting or increasing the economic interest of existing shareholders.","page_number":162,"box":{"x":68,"y":453,"width":728,"height":11}},{"id":"414e6824-cf33-4c2d-bf9e-175af4d19d75","block_type":"box","text":"Each Fund’s annual audited financial statements, which are prepared in accordance with accounting principles","page_number":162,"box":{"x":102,"y":475,"width":786,"height":12}},{"id":"c7fa573d-1887-4995-b816-c14486b6f401","block_type":"box","text":"generally accepted in the United States of America (“US GAAP”), follow the requirements for valuation set forth in","page_number":162,"box":{"x":68,"y":491,"width":809,"height":11}},{"id":"1ae4a3d1-a090-49db-a40d-bcce7c6071bd","block_type":"box","text":"Financial Accounting Standards Board Accounting Standards Codification Topic 820, “Fair Value Measurements and","page_number":162,"box":{"x":70,"y":506,"width":821,"height":11}},{"id":"2ee26cf8-5d2c-4522-933d-a972dd0cf659","block_type":"box","text":"Disclosures” (“ASC 820”), which defines and establishes a framework for measuring fair value under US GAAP and","page_number":162,"box":{"x":70,"y":521,"width":818,"height":11}},{"id":"dd0f5420-31ca-4247-8a51-870cdd82a79f","block_type":"box","text":"expands financial statement disclosure requirements relating to fair value measurements.","page_number":162,"box":{"x":69,"y":536,"width":641,"height":11}},{"id":"112a9428-28f5-4ad8-9873-ecbab29302dd","block_type":"box","text":"Generally, ASC 820 and other accounting rules applicable to funds and various assets in which they invest are","page_number":162,"box":{"x":102,"y":559,"width":786,"height":11}},{"id":"a260649e-59b3-48f6-8cc9-8673b201f8c7","block_type":"box","text":"evolving. Such changes may adversely affect a Fund. For example, the evolution of rules governing the determination","page_number":162,"box":{"x":69,"y":574,"width":832,"height":11}},{"id":"1263f7b7-4fbd-4841-b370-0a68343b8320","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":162,"box":{"x":69,"y":589,"width":780,"height":11}},{"id":"e81bedaa-b1c3-4b48-9a51-47ddc266b1ab","block_type":"box","text":"increase the cost and/or reduce the availability of third-party determinations of fair market value. This may in turn","page_number":162,"box":{"x":70,"y":604,"width":810,"height":11}},{"id":"3b6975c5-a9f1-4785-ab9e-89408921f48d","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":162,"box":{"x":70,"y":619,"width":810,"height":11}},{"id":"b3b81d30-2c13-4296-b14a-4c1db7d13b16","block_type":"box","text":"party determination of fair market value.","page_number":162,"box":{"x":70,"y":634,"width":285,"height":11}},{"id":"d1285fdc-9652-4e56-9cae-8e2074c072c6","block_type":"box","text":"Computation of Offering Price Per Share","page_number":162,"box":{"x":69,"y":665,"width":292,"height":11}},{"id":"5cfe2c77-675d-45e9-98a0-401a6b220d5d","block_type":"box","text":"See “Computation of Offering Price Per Share” in Part I of a Fund’s SAI for an illustration of the computation of","page_number":162,"box":{"x":102,"y":687,"width":791,"height":11}},{"id":"caa9d769-8db0-471f-8d15-7f082e510b31","block_type":"box","text":"the offering price for shares of your Fund.","page_number":162,"box":{"x":68,"y":702,"width":295,"height":12}},{"id":"044dcce9-6622-438f-a13a-f4fc1504d4c5","block_type":"box","text":"PORTFOLIO TRANSACTIONS AND BROKERAGE","page_number":162,"box":{"x":303,"y":732,"width":373,"height":10}},{"id":"882f8e94-b795-400c-bb3f-fdc1613e133f","block_type":"box","text":"Transactions in Portfolio Securities","page_number":162,"box":{"x":68,"y":762,"width":257,"height":9}},{"id":"6de1a20f-ed76-4e0e-8b90-3c09294e6a4b","block_type":"box","text":"Subject to policies established by the Board of Directors, BlackRock is primarily responsible for the execution of","page_number":162,"box":{"x":102,"y":785,"width":798,"height":11}},{"id":"b67dfee5-ee98-41e8-a3ac-579c4aabf5a5","block_type":"box","text":"a Fund’s portfolio transactions and the allocation of brokerage. BlackRock does not execute transactions through any","page_number":162,"box":{"x":69,"y":800,"width":839,"height":11}},{"id":"8e51db9c-e56b-49f3-a32a-dc124115122c","block_type":"box","text":"particular broker or dealer, but seeks to obtain the best net results for the Fund, taking into account certain factors","page_number":162,"box":{"x":70,"y":815,"width":822,"height":11}},{"id":"32c480bd-f9a3-458c-a247-ee6e16aacd57","block_type":"box","text":"set out below. While BlackRock generally seeks reasonable trade execution costs, a Fund does not necessarily pay","page_number":162,"box":{"x":69,"y":830,"width":820,"height":11}},{"id":"930dd5c9-6332-4e79-a443-eff518c7b2f7","block_type":"box","text":"the lowest spread or commission available, and payment of the lowest commission or spread is not necessarily","page_number":162,"box":{"x":68,"y":845,"width":798,"height":11}},{"id":"78347019-60f2-402f-b0aa-807e3eac6158","block_type":"box","text":"consistent with obtaining the best price and execution in particular transactions. Subject to applicable legal","page_number":162,"box":{"x":69,"y":860,"width":765,"height":12}},{"id":"bfe1a81c-8bf9-4c8f-b236-55786a982964","block_type":"box","text":"requirements, BlackRock may select a broker based partly upon brokerage or research services provided to","page_number":162,"box":{"x":69,"y":876,"width":768,"height":11}},{"id":"3255a82d-be01-443a-bd60-be4a96c71ffa","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":162,"box":{"x":70,"y":891,"width":830,"height":11}},{"id":"d3a838f4-1284-4c91-9566-c555723042b1","block_type":"box","text":"II-124","page_number":162,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"531a7e7b-4b51-4b37-9fd0-5af43cda98c6","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":162,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0c6988b2-3535-4ce1-94eb-59eb12ba7b35","block_type":"box","text":"commission than other brokers would charge if BlackRock determines in good faith that the commission is","page_number":163,"box":{"x":69,"y":45,"width":760,"height":11}},{"id":"b1d28662-7dca-4ebc-b675-65d0f40e8485","block_type":"box","text":"reasonable in relation to the services provided.","page_number":163,"box":{"x":69,"y":60,"width":336,"height":11}},{"id":"03a647e1-350e-43ee-8dea-379c0dd5ec44","block_type":"box","text":"In the case of Feeder Funds, because each Feeder Fund generally invests exclusively in beneficial interests of a","page_number":163,"box":{"x":102,"y":82,"width":794,"height":12}},{"id":"81ed8176-5cbb-4231-b74f-c779781a60ec","block_type":"box","text":"Master Portfolio, it is expected that all transactions in portfolio securities will be entered into by the Master Portfolio.","page_number":163,"box":{"x":70,"y":98,"width":835,"height":11}},{"id":"41b252e4-c753-4ad8-b67c-eb4805cd7416","block_type":"box","text":"In selecting brokers or dealers to execute portfolio transactions, the Manager and sub-advisers seek to obtain","page_number":163,"box":{"x":102,"y":120,"width":784,"height":12}},{"id":"803257b2-9a4a-4964-96a1-30d8048d0f7a","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":163,"box":{"x":68,"y":135,"width":829,"height":12}},{"id":"b69b1ab6-86c0-49f9-82ba-1740187d7fd8","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":163,"box":{"x":69,"y":150,"width":802,"height":12}},{"id":"ef1a653f-5c9e-4f2c-b9f3-bf09f2792ad1","block_type":"box","text":"(ii) the desired timing of the transaction; (iii) BlackRock’s knowledge of the expected commission rates and spreads","page_number":163,"box":{"x":69,"y":166,"width":826,"height":11}},{"id":"df86b36a-e0f9-4028-b3d9-ef1e6ae3cd0a","block_type":"box","text":"currently available; (iv) the activity existing and expected in the market for the particular security or instrument,","page_number":163,"box":{"x":69,"y":181,"width":789,"height":11}},{"id":"564df043-964f-48f7-b37e-38847cbe3dc5","block_type":"box","text":"including any anticipated execution difficulties; (v) the full range of brokerage services provided; (vi) the broker’s or","page_number":163,"box":{"x":70,"y":196,"width":818,"height":11}},{"id":"95a5dd76-a115-459e-afa2-491710218fad","block_type":"box","text":"dealer’s capital; (vii) the quality of research and research services provided; (viii) the reasonableness of the","page_number":163,"box":{"x":69,"y":211,"width":769,"height":11}},{"id":"f0b6978d-70c7-426e-a39a-dd521b596b7c","block_type":"box","text":"commission, dealer spread or its equivalent for the specific transaction; and (ix) BlackRock’s knowledge of any actual","page_number":163,"box":{"x":69,"y":226,"width":837,"height":11}},{"id":"90644083-a25d-40f9-847c-2a497e36bdc2","block_type":"box","text":"or apparent operational problems of a broker or dealer.","page_number":163,"box":{"x":69,"y":241,"width":391,"height":11}},{"id":"331ee26d-596c-4770-b290-bee273e72a55","block_type":"box","text":"Section 28(e) of the Exchange Act (“Section 28(e)”) permits an investment adviser, under certain circumstances","page_number":163,"box":{"x":102,"y":264,"width":801,"height":11}},{"id":"207d1904-763d-45ce-977e-34a96da35a0a","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":163,"box":{"x":68,"y":279,"width":802,"height":11}},{"id":"4c229a7d-cefa-471f-aa9c-f5014ef4561d","block_type":"box","text":"another broker or dealer would have charged for effecting the same transaction in recognition of the value of","page_number":163,"box":{"x":69,"y":294,"width":775,"height":11}},{"id":"9fb7aaf0-88c4-46d6-b17f-2d7e4cdb229c","block_type":"box","text":"brokerage and research services provided by that broker or dealer. This includes commissions paid on riskless","page_number":163,"box":{"x":69,"y":309,"width":790,"height":11}},{"id":"f61623b1-2c6f-4bee-b4d2-5412ea692fab","block_type":"box","text":"principal transactions under certain conditions. Brokerage and research services include: (1) furnishing advice as to","page_number":163,"box":{"x":70,"y":324,"width":827,"height":12}},{"id":"69399c2c-fd6c-47ee-a292-f44b137d2960","block_type":"box","text":"the value of securities, including pricing and appraisal advice, credit analysis, risk measurement analysis,","page_number":163,"box":{"x":68,"y":339,"width":753,"height":12}},{"id":"77c914ae-b093-482b-9cc6-76c53134d793","block_type":"box","text":"performance and other analysis, as well as the advisability of investing in, purchasing or selling securities, and the","page_number":163,"box":{"x":70,"y":355,"width":818,"height":11}},{"id":"bc37e99a-3205-4ed9-88ac-bf1c2055d49c","block_type":"box","text":"availability of securities or purchasers or sellers of securities; (2) furnishing analyses and reports concerning issuers,","page_number":163,"box":{"x":69,"y":370,"width":837,"height":11}},{"id":"3b72d7d6-c310-4641-b1b3-c7079e79a0c9","block_type":"box","text":"industries, securities, economic factors and trends, portfolio strategy, and the performance of accounts; and","page_number":163,"box":{"x":70,"y":385,"width":775,"height":11}},{"id":"3b4d06d8-4e58-4c37-a09c-c08b7e69dbd7","block_type":"box","text":"(3) effecting securities transactions and performing functions incidental to securities transactions (such as","page_number":163,"box":{"x":69,"y":400,"width":764,"height":11}},{"id":"171f80e8-9c24-4abe-b0a8-60d281af1608","block_type":"box","text":"clearance, settlement, and custody). BlackRock believes that access to independent investment research is","page_number":163,"box":{"x":69,"y":415,"width":770,"height":11}},{"id":"95e5f0ef-3768-47e9-a6df-f15c3b9ecddb","block_type":"box","text":"beneficial to its investment decision-making processes and, therefore, to the Funds.","page_number":163,"box":{"x":69,"y":430,"width":599,"height":11}},{"id":"d96b22e2-d7f4-46ad-aac5-86b1627a102d","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may participate in client commission arrangements under which","page_number":163,"box":{"x":102,"y":453,"width":796,"height":11}},{"id":"5e91a86c-86a8-47cf-971d-2ce5381e29e6","block_type":"box","text":"BlackRock may execute transactions through a broker-dealer and request that the broker-dealer allocate a portion of","page_number":163,"box":{"x":70,"y":468,"width":829,"height":11}},{"id":"62db6740-3f2d-40dc-bdd6-356685458ea3","block_type":"box","text":"the commissions or commission credits to another firm that provides research to BlackRock. BlackRock believes that","page_number":163,"box":{"x":68,"y":483,"width":839,"height":11}},{"id":"8ecf463b-70cd-48a2-b258-1a5bf970272b","block_type":"box","text":"research services obtained through soft dollar or commission sharing arrangements enhance its investment decision","page_number":163,"box":{"x":69,"y":498,"width":839,"height":11}},{"id":"505b14f3-0ebf-4f80-bf1a-22a6fde7f8db","block_type":"box","text":"making capabilities, thereby increasing the prospects for higher investment returns. BlackRock will engage only in","page_number":163,"box":{"x":69,"y":513,"width":809,"height":12}},{"id":"a9859652-ca2d-48ae-ac1c-672920b89e2f","block_type":"box","text":"soft dollar or commission sharing transactions that comply with the requirements of Section 28(e). Certain Funds","page_number":163,"box":{"x":69,"y":528,"width":808,"height":12}},{"id":"5c766a9d-37d3-443a-8712-cb1bf9fc195e","block_type":"box","text":"may be subject to additional regulations, including MiFID II. Under MiFID II, EU investment managers, including BIL,","page_number":163,"box":{"x":69,"y":544,"width":818,"height":11}},{"id":"53537d36-0235-4dbf-ae56-000f6c4d6efa","block_type":"box","text":"pay for any research out of their own resources and not through soft dollars or commission sharing arrangements.","page_number":163,"box":{"x":70,"y":559,"width":813,"height":11}},{"id":"9f8b7db3-f894-44fd-b2ff-19d1f94b3ca0","block_type":"box","text":"BlackRock regularly evaluates the soft dollar products and services utilized, as well as the overall soft dollar and","page_number":163,"box":{"x":70,"y":574,"width":801,"height":11}},{"id":"1870a5b0-6f16-426b-86cc-7fc20c0451e7","block_type":"box","text":"commission sharing arrangements to ensure that trades are executed by firms that are regarded as best able to","page_number":163,"box":{"x":69,"y":589,"width":802,"height":11}},{"id":"aaf6d2e9-37ba-45d0-8104-3e6e8535fa10","block_type":"box","text":"execute trades for client accounts, while at the same time providing access to the research and other services","page_number":163,"box":{"x":69,"y":604,"width":790,"height":11}},{"id":"1bad6248-b643-4781-afde-b7b876854233","block_type":"box","text":"BlackRock views as impactful to its trading results.","page_number":163,"box":{"x":70,"y":619,"width":361,"height":11}},{"id":"819c015f-8694-48ff-96e0-e337deeb1af9","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may utilize soft dollars and related services, including research","page_number":163,"box":{"x":102,"y":642,"width":791,"height":11}},{"id":"c08e3461-de69-454e-9585-99292d09abb3","block_type":"box","text":"(whether prepared by the broker-dealer or prepared by a third-party and provided to BlackRock by the broker-dealer)","page_number":163,"box":{"x":69,"y":657,"width":819,"height":11}},{"id":"b30c8da0-ba64-41c8-aff8-eea4f6e1e348","block_type":"box","text":"and execution or brokerage services within applicable rules and BlackRock’s policies to the extent that such","page_number":163,"box":{"x":69,"y":672,"width":772,"height":11}},{"id":"f07f9c0e-30fe-4377-b39e-ece0c5a60527","block_type":"box","text":"permitted services do not compromise BlackRock’s ability to seek to obtain best execution. In this regard, the","page_number":163,"box":{"x":70,"y":687,"width":785,"height":11}},{"id":"fed45be0-47a5-4315-8dab-d7008c67b5ec","block_type":"box","text":"portfolio management investment and/or trading teams may consider a variety of factors, including the degree to","page_number":163,"box":{"x":70,"y":702,"width":806,"height":12}},{"id":"c7c34772-b6ed-4f81-bd8f-c08736eae4a6","block_type":"box","text":"which the broker-dealer: (a) provides access to company management; (b) provides access to their analysts;","page_number":163,"box":{"x":68,"y":718,"width":772,"height":11}},{"id":"9ad729a0-4648-4072-b658-db673af84de4","block_type":"box","text":"(c) provides meaningful/insightful research notes on companies or other potential investments; (d) facilitates calls on","page_number":163,"box":{"x":69,"y":732,"width":838,"height":12}},{"id":"092240b8-f99b-4ac9-8c6a-749711550aef","block_type":"box","text":"which meaningful or insightful ideas about companies or potential investments are discussed; (e) facilitates","page_number":163,"box":{"x":68,"y":748,"width":769,"height":11}},{"id":"4152d782-d8c8-4083-a33a-38f8366e6a64","block_type":"box","text":"conferences at which meaningful or insightful ideas about companies or potential investments are discussed; or","page_number":163,"box":{"x":69,"y":763,"width":801,"height":11}},{"id":"45f9be4f-5b1a-4857-a3cc-216a8d0928bd","block_type":"box","text":"(f) provides research tools such as market data, financial analysis, and other third-party related research and","page_number":163,"box":{"x":69,"y":778,"width":778,"height":11}},{"id":"fb216545-dfcb-4f97-9116-e98e8a0fd569","block_type":"box","text":"brokerage tools that aid in the investment process.","page_number":163,"box":{"x":69,"y":793,"width":363,"height":11}},{"id":"34c1de50-ddd2-4203-b618-e2f4924596a6","block_type":"box","text":"Research-oriented services for which BlackRock, unless prohibited by applicable law, might pay with Fund","page_number":163,"box":{"x":102,"y":816,"width":749,"height":11}},{"id":"83ac2dfe-e5c3-4506-85d8-cdd57719bf5f","block_type":"box","text":"commissions may be in written form or through direct contact with individuals and may include information as to","page_number":163,"box":{"x":69,"y":831,"width":799,"height":11}},{"id":"d6e66d0e-7f24-40cc-b6b5-4e7bc2e72395","block_type":"box","text":"particular companies or industries and securities or groups of securities, as well as market, economic, or","page_number":163,"box":{"x":70,"y":846,"width":752,"height":11}},{"id":"610328be-faee-44d7-966d-f760788f31fe","block_type":"box","text":"institutional advice and statistical information, political developments and technical market information that assists","page_number":163,"box":{"x":70,"y":861,"width":823,"height":11}},{"id":"2f0b5307-7727-4e07-8afd-10adca24b922","block_type":"box","text":"in the valuation of investments. Except as noted immediately below, research services furnished by brokers may be","page_number":163,"box":{"x":70,"y":876,"width":822,"height":11}},{"id":"10380ca6-82ac-4b01-a8f3-d5682b42c339","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":163,"box":{"x":69,"y":891,"width":840,"height":12}},{"id":"f4cde3f0-164a-40fd-a298-2e2bd2ad2145","block_type":"box","text":"that paid commissions to the broker providing such services. In some cases, research information received from","page_number":163,"box":{"x":68,"y":906,"width":805,"height":12}},{"id":"d7cd469a-6ce2-487f-aea0-d88435022f1d","block_type":"box","text":"II-125","page_number":163,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"0029aada-779c-4658-8a12-53d1da9b7aa8","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":163,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"44f2a68c-4c71-496b-a28a-181446eb5d73","block_type":"box","text":"brokers by mutual fund management personnel, or personnel principally responsible for BlackRock’s individually","page_number":164,"box":{"x":69,"y":45,"width":798,"height":11}},{"id":"909e6be7-9931-4fb6-a6f0-5dd7877f1027","block_type":"box","text":"managed portfolios, is not necessarily shared by and between such personnel. Any investment advisory or other fees","page_number":164,"box":{"x":69,"y":60,"width":836,"height":11}},{"id":"f37e6b97-2ec0-4478-a6a3-c2bd300eb4cd","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":164,"box":{"x":70,"y":75,"width":832,"height":11}},{"id":"8ebb83d3-62f1-454d-84ff-7cc3f1c01a7d","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":164,"box":{"x":70,"y":90,"width":798,"height":11}},{"id":"96d9ae2e-de99-48ee-af9f-36131b250a1c","block_type":"box","text":"occurs BlackRock makes a good faith allocation, under all the circumstances, between the research and non","page_number":164,"box":{"x":69,"y":105,"width":780,"height":11}},{"id":"6a3e9329-2cd1-4c72-b118-59110c84f037","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":164,"box":{"x":69,"y":120,"width":827,"height":12}},{"id":"6a482841-0462-4521-8bb3-378baae3c28e","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":164,"box":{"x":69,"y":135,"width":821,"height":12}},{"id":"965a731b-9b2d-4837-93e9-f4e5353c34a4","block_type":"box","text":"non-research purposes. In making this good faith allocation, BlackRock faces a potential conflict of interest, but","page_number":164,"box":{"x":69,"y":150,"width":797,"height":12}},{"id":"694ee729-8c64-484c-bdf2-05a8fb13af1d","block_type":"box","text":"BlackRock believes that its allocation procedures are reasonably designed to ensure that it appropriately allocates","page_number":164,"box":{"x":70,"y":166,"width":815,"height":11}},{"id":"e31d3aa6-af52-460c-8f2e-2f35b9ff4e47","block_type":"box","text":"the anticipated use of such services to their research and non-research uses.","page_number":164,"box":{"x":68,"y":181,"width":555,"height":11}},{"id":"0c96f4d0-3cb2-4496-9180-af2bd370e1f1","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":164,"box":{"x":102,"y":203,"width":802,"height":12}},{"id":"ce1bdef4-fa6b-4c9e-a5ab-af0bd3874e9d","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":164,"box":{"x":68,"y":218,"width":825,"height":12}},{"id":"1f841ae4-ca2c-48f4-a285-cbbe93567cb6","block_type":"box","text":"or agree with clients to have research costs paid by clients through research payment accounts that are directly","page_number":164,"box":{"x":69,"y":234,"width":798,"height":11}},{"id":"1faf94af-1b01-4783-8d23-50d834bb297b","block_type":"box","text":"funded or funded by a specific client research charge collected alongside execution commissions, provided that the","page_number":164,"box":{"x":68,"y":249,"width":824,"height":11}},{"id":"70a2d64e-a26a-448c-8f4c-d6c202337a2a","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":164,"box":{"x":70,"y":264,"width":812,"height":11}},{"id":"d31b8229-f240-4ca2-86bd-4144401549e8","block_type":"box","text":"resources and not through soft dollars or commission sharing arrangements.","page_number":164,"box":{"x":69,"y":279,"width":547,"height":11}},{"id":"ee866eca-2d92-4199-95d0-1ea40e201d77","block_type":"box","text":"Payments of commissions to brokers who are affiliated persons of the Fund, or the Master Portfolio with respect","page_number":164,"box":{"x":102,"y":302,"width":804,"height":11}},{"id":"33ea6926-7b7e-453b-9e4d-89955a1d94bd","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":164,"box":{"x":68,"y":317,"width":806,"height":11}},{"id":"b6cd9141-9f1b-4f21-bcb2-7a7f5b3b86ae","block_type":"box","text":"Investment Company Act. Subject to policies established by the Board of Directors of the Master Portfolio, BlackRock","page_number":164,"box":{"x":70,"y":332,"width":836,"height":11}},{"id":"4117bdcc-150e-41cd-a3c6-6ab19a360e7b","block_type":"box","text":"is primarily responsible for the execution of the Master Portfolio’s portfolio transactions and the allocation of","page_number":164,"box":{"x":70,"y":347,"width":777,"height":11}},{"id":"d590e570-46ea-4a4f-bb2a-f352d2e52444","block_type":"box","text":"brokerage.","page_number":164,"box":{"x":69,"y":362,"width":74,"height":11}},{"id":"b2884f3e-8915-4c84-85ff-75aabe3f37be","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":164,"box":{"x":102,"y":385,"width":781,"height":11}},{"id":"b172c89f-0164-46a3-8ed3-b591cab52103","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":164,"box":{"x":68,"y":400,"width":810,"height":11}},{"id":"ddaf4091-c6fc-4661-9e3a-5259e50aa1a3","block_type":"box","text":"research services. FINRA has adopted rules expressly permitting these types of arrangements under certain","page_number":164,"box":{"x":69,"y":415,"width":771,"height":11}},{"id":"e6e3709b-d1c4-4695-a72a-0527c24e58de","block_type":"box","text":"circumstances. Generally, the broker will provide research “credits” in these situations at a rate that is higher than","page_number":164,"box":{"x":69,"y":430,"width":818,"height":11}},{"id":"2d0574b7-470a-414a-b877-0d25ddc84873","block_type":"box","text":"that available for typical secondary market transactions. These arrangements may not fall within the safe harbor of","page_number":164,"box":{"x":68,"y":445,"width":821,"height":12}},{"id":"583a4c0e-be02-4814-aab2-34724443cb12","block_type":"box","text":"Section 28(e).","page_number":164,"box":{"x":69,"y":460,"width":99,"height":11}},{"id":"3b1588a0-baee-4a40-8585-25674009daa9","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":164,"box":{"x":102,"y":483,"width":755,"height":9}},{"id":"27f31510-9afa-4776-8d7d-41b479eb1854","block_type":"box","text":"brokers or dealers to execute portfolio transactions for a Fund; however, whether or not a particular broker or dealer","page_number":164,"box":{"x":69,"y":498,"width":828,"height":11}},{"id":"0835cf48-abe0-4877-ab39-4d99d6d8b4e9","block_type":"box","text":"sells shares of the mutual funds advised by BlackRock neither qualifies nor disqualifies such broker or dealer to","page_number":164,"box":{"x":69,"y":513,"width":799,"height":11}},{"id":"1e732e63-3180-45b9-9926-5ca83a403b6e","block_type":"box","text":"execute transactions for those mutual funds.","page_number":164,"box":{"x":69,"y":528,"width":319,"height":9}},{"id":"80da083c-fa4c-46ea-8efd-704b2bf37287","block_type":"box","text":"Each Fund anticipates that its brokerage transactions involving foreign securities generally will be conducted","page_number":164,"box":{"x":102,"y":551,"width":770,"height":11}},{"id":"0e410fc1-1732-4072-a6bc-53133bcfdea3","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":164,"box":{"x":70,"y":566,"width":825,"height":11}},{"id":"0fca1d51-be45-4276-b655-2aae7ef03d20","block_type":"box","text":"in the form of depositary receipts, or other securities convertible into foreign equity securities. Depositary receipts","page_number":164,"box":{"x":70,"y":581,"width":816,"height":12}},{"id":"a8b481c9-3b4a-49b6-bb27-5ef56c7803dd","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":164,"box":{"x":69,"y":597,"width":805,"height":11}},{"id":"083d75c3-231b-4df1-83ca-9365b551adc1","block_type":"box","text":"American Depositary Receipts, like other securities traded in the United States, will be subject to negotiated","page_number":164,"box":{"x":68,"y":612,"width":773,"height":11}},{"id":"395af875-4527-473c-b388-b67f6e3e2b4a","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":164,"box":{"x":69,"y":627,"width":798,"height":11}},{"id":"cf81f351-8feb-4972-bdf6-5598e0e01ba4","block_type":"box","text":"intends to manage its portfolio so as to give reasonable assurance that it will be able to obtain U.S. dollars to the","page_number":164,"box":{"x":70,"y":642,"width":812,"height":11}},{"id":"98bd60bf-0465-430d-99d2-96c3e11ceb1c","block_type":"box","text":"extent necessary to meet anticipated redemptions. Under present conditions, it is not believed that these","page_number":164,"box":{"x":69,"y":657,"width":754,"height":11}},{"id":"efa570fb-68ce-4df2-82df-c8fb9b48287e","block_type":"box","text":"considerations will have a significant effect on a Fund’s portfolio strategies.","page_number":164,"box":{"x":69,"y":672,"width":540,"height":11}},{"id":"7e2939eb-17b0-42ad-8026-e5d25295847e","block_type":"box","text":"See “Portfolio Transactions and Brokerage” in the SAI for information about the brokerage commissions paid by","page_number":164,"box":{"x":102,"y":695,"width":798,"height":11}},{"id":"1bcaa569-65aa-4a26-97d2-7d38d0f8c767","block_type":"box","text":"your Fund, including commissions paid to affiliates, if any, for the periods indicated.","page_number":164,"box":{"x":68,"y":710,"width":597,"height":11}},{"id":"1f23ca37-2307-4225-b7f1-5f28389b25c8","block_type":"box","text":"Each Fund may invest in certain securities traded in the OTC market and intends to deal directly with the dealers","page_number":164,"box":{"x":102,"y":733,"width":802,"height":11}},{"id":"5d0a3802-bfc9-4feb-90da-98295f6b823a","block_type":"box","text":"who make a market in the particular securities, except in those circumstances in which better prices and execution","page_number":164,"box":{"x":68,"y":748,"width":822,"height":11}},{"id":"913c9bd9-6bf9-4b15-824b-37255c85629f","block_type":"box","text":"are available elsewhere. Under the Investment Company Act, persons affiliated with a Fund and persons who are","page_number":164,"box":{"x":69,"y":763,"width":804,"height":11}},{"id":"7bca8297-37a0-4adb-98c8-1781a86f7882","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":164,"box":{"x":69,"y":778,"width":832,"height":11}},{"id":"879c322a-27e0-455d-8dd2-acd2fcd5ebb0","block_type":"box","text":"of securities unless a permissive order allowing such transactions is obtained from the Commission. Since","page_number":164,"box":{"x":69,"y":793,"width":762,"height":11}},{"id":"0740135b-54d7-49f7-9cd2-1485ec0fe6d8","block_type":"box","text":"transactions in the OTC market usually involve transactions with the dealers acting as principal for their own","page_number":164,"box":{"x":68,"y":808,"width":770,"height":11}},{"id":"5877ad60-3690-4105-be28-f6f89bf705fc","block_type":"box","text":"accounts, the Funds will not deal with affiliated persons in connection with such transactions. However, an affiliated","page_number":164,"box":{"x":69,"y":823,"width":828,"height":11}},{"id":"2e489923-064a-4f78-a091-521ed4bf4a87","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":164,"box":{"x":70,"y":838,"width":814,"height":12}},{"id":"d2c6a194-838b-406c-809b-e897ddf1e134","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":164,"box":{"x":69,"y":853,"width":825,"height":12}},{"id":"d071feb4-e201-4a95-ac5f-40dab96e279d","block_type":"box","text":"commission received by non-affiliated brokers in connection with comparable transactions.","page_number":164,"box":{"x":69,"y":869,"width":645,"height":11}},{"id":"620b5d0f-90fd-4a39-9e7a-8dd47fe3cb9b","block_type":"box","text":"OTC issues, including most fixed-income securities such as corporate debt and U.S. Government Securities, are","page_number":164,"box":{"x":102,"y":891,"width":797,"height":12}},{"id":"961d37d4-2c15-46ff-aa97-e5464bbed6ce","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":164,"box":{"x":69,"y":906,"width":826,"height":12}},{"id":"b198f995-e563-490c-9782-fca42f8abb0b","block_type":"box","text":"II-126","page_number":164,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"d3104901-856d-4ee7-bab8-65a4f29d17e3","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":164,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c9c08c51-1798-42e6-9c57-5fa307f21dbe","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":165,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"987cbb7a-28d8-4c48-9c19-7f03036ce8df","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":165,"box":{"x":69,"y":60,"width":833,"height":11}},{"id":"0297ab71-1120-4a54-9eb8-d032759a8ca6","block_type":"box","text":"domestic securities will generally include a “spread,” which is the difference between the prices at which the dealer","page_number":165,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"12f8d584-1403-47f3-b594-c3be76252d46","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":165,"box":{"x":70,"y":90,"width":730,"height":11}},{"id":"841e9e55-aa10-43e4-a204-6fdcee7eeeb7","block_type":"box","text":"Purchases of money market instruments by a Fund are made from dealers, underwriters and issuers. The Funds","page_number":165,"box":{"x":102,"y":113,"width":800,"height":11}},{"id":"fa1bd95e-e3bc-41f8-9d10-2a8375b5a6a4","block_type":"box","text":"do not currently expect to incur any brokerage commission expense on such transactions because money market","page_number":165,"box":{"x":69,"y":128,"width":807,"height":11}},{"id":"dd29c512-6678-418a-bdf5-ae5af0510549","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":165,"box":{"x":70,"y":143,"width":812,"height":11}},{"id":"cb355fa5-642a-4932-ab3f-bd690c7a73e3","block_type":"box","text":"stated commission. The price of the security, however, usually includes a profit to the dealer. Each money market","page_number":165,"box":{"x":69,"y":158,"width":807,"height":11}},{"id":"289c439d-6ace-4b4f-a1bd-b361728bd608","block_type":"box","text":"fund intends to purchase only securities with remaining maturities of 397 days or less as determined in accordance","page_number":165,"box":{"x":68,"y":173,"width":827,"height":11}},{"id":"4125a477-6433-49d1-a3ad-7dec417f021d","block_type":"box","text":"with the rules of the Commission. As a result, the portfolio turnover rates of a money market fund will be relatively","page_number":165,"box":{"x":68,"y":188,"width":817,"height":11}},{"id":"c558f1d6-8e38-4972-bac8-466c939c4083","block_type":"box","text":"high. However, because brokerage commissions will not normally be paid with respect to investments made by a","page_number":165,"box":{"x":69,"y":204,"width":802,"height":11}},{"id":"322870be-21b3-48e8-9f4c-071381a4babe","block_type":"box","text":"money market fund, the turnover rates should not adversely affect the Fund’s NAVs or net income.","page_number":165,"box":{"x":69,"y":218,"width":700,"height":12}},{"id":"ed641951-603e-4a77-b587-62caa70dfe1d","block_type":"box","text":"Securities purchased in underwritten offerings include a fixed amount of compensation to the underwriter,","page_number":165,"box":{"x":102,"y":241,"width":756,"height":11}},{"id":"35837428-ee0e-456c-894f-f2f6b3ec721f","block_type":"box","text":"generally referred to as the underwriter’s concession or discount. When offered securities are purchased or sold","page_number":165,"box":{"x":68,"y":256,"width":804,"height":12}},{"id":"6f242581-96b3-4f4a-954b-6d5c1a746304","block_type":"box","text":"directly from or to an issuer, no commissions or discounts are paid except where required by local markets.","page_number":165,"box":{"x":69,"y":271,"width":766,"height":12}},{"id":"eb6e3a06-a5c7-4a09-a9b7-fb208d6dbe04","block_type":"box","text":"The Manager or sub-advisers may seek to obtain an undertaking from issuers of commercial paper or dealers","page_number":165,"box":{"x":101,"y":294,"width":780,"height":11}},{"id":"77aadc1b-3b22-4bba-a434-2fa89d1b2678","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":165,"box":{"x":69,"y":309,"width":826,"height":11}},{"id":"fb08063f-3b86-455a-852c-a4efb88e6f6a","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":165,"box":{"x":69,"y":324,"width":806,"height":11}},{"id":"fe9d2a6b-2230-4b3b-b13e-a6a3cd2d4877","block_type":"box","text":"anticipated need for liquidity makes such action desirable. Any such repurchase prior to maturity reduces the","page_number":165,"box":{"x":69,"y":339,"width":776,"height":12}},{"id":"dfa29d43-c4a3-4dc7-a5c0-7cb7d635607c","block_type":"box","text":"possibility that a Fund would incur a capital loss in liquidating commercial paper, especially if interest rates have","page_number":165,"box":{"x":70,"y":355,"width":800,"height":11}},{"id":"444132b9-f1da-412b-ac04-6ce077347c6c","block_type":"box","text":"risen since acquisition of such commercial paper.","page_number":165,"box":{"x":69,"y":370,"width":352,"height":11}},{"id":"16a0855c-b258-4f22-8ff7-9e9b50a3d3e5","block_type":"box","text":"Investment decisions for each Fund and for other investment accounts managed by the Manager or sub-advisers","page_number":165,"box":{"x":102,"y":392,"width":800,"height":12}},{"id":"470985b0-e903-4ded-b52a-fd340319c1cd","block_type":"box","text":"are made independently of each other in light of differing conditions. BlackRock allocates investments among client","page_number":165,"box":{"x":69,"y":407,"width":824,"height":12}},{"id":"cfd77ace-53b9-4905-ab6e-74354f78d5a2","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":165,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"26948f78-9f69-44f3-a98c-d4f475592f27","block_type":"box","text":"These factors include: (i) investment objectives or strategies for particular accounts, including sector, industry,","page_number":165,"box":{"x":68,"y":438,"width":788,"height":11}},{"id":"3cb4db67-700b-41c2-8ce7-115139911a96","block_type":"box","text":"country or region and capitalization weightings, (ii) tax considerations of an account, (iii) risk or investment","page_number":165,"box":{"x":69,"y":453,"width":759,"height":11}},{"id":"b033e699-3831-4cbe-aa57-4b6063838bf1","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":165,"box":{"x":69,"y":468,"width":780,"height":11}},{"id":"c1fb5d34-bea1-4b4c-8821-ada1c5c8079b","block_type":"box","text":"available investment, (vi) cash availability and liquidity requirements for accounts, (vii) regulatory restrictions,","page_number":165,"box":{"x":69,"y":483,"width":777,"height":11}},{"id":"9c1fb27b-d469-4803-a1e9-5f86c4e73c11","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":165,"box":{"x":69,"y":498,"width":788,"height":11}},{"id":"3a217cce-a93b-4c36-b522-1ede492ba07a","block_type":"box","text":"approved by BlackRock’s general counsel. Moreover, investments may not be allocated to one client account over","page_number":165,"box":{"x":69,"y":514,"width":811,"height":11}},{"id":"51525731-dd30-4bb2-8543-a0bb8e26fe97","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":165,"box":{"x":69,"y":528,"width":829,"height":12}},{"id":"5598ed9d-e215-44f6-aa8c-d39406c729ba","block_type":"box","text":"generate higher fees paid by one client account over another or to produce greater performance compensation to","page_number":165,"box":{"x":68,"y":543,"width":808,"height":12}},{"id":"cdddd192-e53e-4854-860c-c261a6330b48","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":165,"box":{"x":70,"y":559,"width":832,"height":11}},{"id":"3f876bde-0d73-4639-aae5-befc6b789550","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":165,"box":{"x":70,"y":574,"width":836,"height":11}},{"id":"d65a2cc7-1016-4ee1-a39c-5724e0a5caf0","block_type":"box","text":"or (v) to manage or equalize investment performance among different client accounts.","page_number":165,"box":{"x":69,"y":589,"width":613,"height":11}},{"id":"b1844b2c-d2c7-4915-9f89-f2207a293926","block_type":"box","text":"Equity securities will generally be allocated among client accounts within the same investment mandate on a pro","page_number":165,"box":{"x":102,"y":612,"width":802,"height":11}},{"id":"65b23be6-5729-4ba1-a1b0-b2f29aee23e1","block_type":"box","text":"rata basis. All allocations of equity securities will be subject, where relevant, to share minimums established for","page_number":165,"box":{"x":69,"y":627,"width":800,"height":11}},{"id":"9aedbc1a-a7bf-48e7-9e06-0b809dacfb2e","block_type":"box","text":"accounts and compliance constraints.","page_number":165,"box":{"x":69,"y":642,"width":269,"height":11}},{"id":"583cf02b-5e05-49d2-ad7c-ecfa365bc51b","block_type":"box","text":"Initial public offerings of securities may be over-subscribed and subsequently trade at a premium in the","page_number":165,"box":{"x":102,"y":664,"width":736,"height":12}},{"id":"bb411f00-7ef4-4375-91f1-09c3c6d2fd06","block_type":"box","text":"secondary market. In these situations, the supply of securities available for client accounts is often less than the","page_number":165,"box":{"x":69,"y":680,"width":808,"height":11}},{"id":"d334e85d-b29a-4a14-97f4-25b3a3c696e8","block_type":"box","text":"amount of securities the accounts would otherwise take. In order to allocate these investments fairly and equitably","page_number":165,"box":{"x":69,"y":695,"width":821,"height":11}},{"id":"99d801a0-5c3e-4d3b-b80e-163f9077a54d","block_type":"box","text":"among client accounts over time, each portfolio manager or a member of his or her respective investment team will","page_number":165,"box":{"x":69,"y":710,"width":823,"height":11}},{"id":"d7eea032-23a4-45f4-9b30-e0fe047d358f","block_type":"box","text":"indicate to BlackRock’s trading desk their level of interest in a particular offering with respect to eligible client","page_number":165,"box":{"x":70,"y":725,"width":783,"height":11}},{"id":"e0171ff0-121f-4913-8f70-5e220d4d2eb9","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":165,"box":{"x":69,"y":740,"width":793,"height":11}},{"id":"5445df17-1b8a-40d4-9853-dae97ee968de","block_type":"box","text":"eligible for particular client accounts that are managed by portfolio teams who have indicated interest in the offering","page_number":165,"box":{"x":69,"y":755,"width":831,"height":11}},{"id":"14b4759a-4fac-423e-a06b-609261dbc70c","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":165,"box":{"x":69,"y":770,"width":828,"height":11}},{"id":"21ffcc09-17e4-41fa-a956-a35f69d00cc3","block_type":"box","text":"the case of international equity securities, the country where the offering is taking place and the investment mandate","page_number":165,"box":{"x":68,"y":785,"width":839,"height":12}},{"id":"817475fe-0751-4461-a3f8-ab837f4c8a80","block_type":"box","text":"of the client account. Generally, shares received during the initial public offering will be allocated among participating","page_number":165,"box":{"x":69,"y":801,"width":835,"height":11}},{"id":"bd4bfb1b-d830-4ccf-a919-4bc988935ece","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":165,"box":{"x":69,"y":816,"width":819,"height":11}},{"id":"0b879535-d76d-4152-97b1-58ce39272f28","block_type":"box","text":"allocated among all accounts for which the investment is eligible, portfolio managers may rotate such investment","page_number":165,"box":{"x":69,"y":831,"width":808,"height":11}},{"id":"709f4dad-9534-4522-a4c6-3e3ea4300892","block_type":"box","text":"opportunities among one or more accounts so long as the rotation system provides for fair access for all client","page_number":165,"box":{"x":69,"y":846,"width":791,"height":11}},{"id":"e89d8eda-9240-418c-b7a2-dfc6c014c841","block_type":"box","text":"accounts over time. Other allocation methodologies that are considered by BlackRock to be fair and equitable to","page_number":165,"box":{"x":69,"y":861,"width":799,"height":11}},{"id":"feeb0dbf-c79d-4acb-824a-f56e8f93ff96","block_type":"box","text":"clients may be used as well.","page_number":165,"box":{"x":69,"y":876,"width":200,"height":11}},{"id":"a9a521ba-731e-4ceb-86d2-5d2d6f3b93d2","block_type":"box","text":"II-127","page_number":165,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"61ca2ce4-fede-4e3e-a15a-d907f7343b6b","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":165,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3738f25c-10c7-4929-ab99-3bee810b2411","block_type":"box","text":"Because different accounts may have differing investment objectives and policies, BlackRock may buy and sell","page_number":166,"box":{"x":102,"y":45,"width":789,"height":11}},{"id":"06e423bc-8909-4ca3-baec-87068319c038","block_type":"box","text":"the same securities at the same time for different clients based on the particular investment objective, guidelines","page_number":166,"box":{"x":68,"y":60,"width":815,"height":11}},{"id":"00c23b46-5d7d-4dee-aeec-6cac4d426a48","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":166,"box":{"x":69,"y":75,"width":835,"height":11}},{"id":"2d895389-607c-4bae-904a-8164015fd018","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":166,"box":{"x":68,"y":90,"width":833,"height":11}},{"id":"d7650bb1-2086-437d-b1a5-6e05db8bbcc9","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":166,"box":{"x":69,"y":105,"width":829,"height":11}},{"id":"382f8f3a-d28f-43d9-9632-ac026d47c850","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":166,"box":{"x":69,"y":120,"width":825,"height":12}},{"id":"138859c3-aefc-45fb-92ba-f7706e18100b","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":166,"box":{"x":69,"y":135,"width":806,"height":11}},{"id":"1d05fdae-1177-4da2-8485-aff6b4fbc365","block_type":"box","text":"adversely impacting other BlackRock clients that still hold the security. If purchases or sales of securities arise for","page_number":166,"box":{"x":69,"y":150,"width":814,"height":12}},{"id":"a20f3aa0-0a4c-4de0-b492-a99c2985dfee","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":166,"box":{"x":69,"y":166,"width":836,"height":9}},{"id":"a3ab9db5-22ee-41c9-8885-3ab75c959783","block_type":"box","text":"affiliate act as investment manager, transactions in such securities will be made, insofar as feasible, for the","page_number":166,"box":{"x":69,"y":181,"width":773,"height":11}},{"id":"a63e5457-f5a8-4468-96a0-f43d7ab28b3c","block_type":"box","text":"respective funds and clients in a manner deemed equitable to all.","page_number":166,"box":{"x":69,"y":196,"width":467,"height":11}},{"id":"4c36530f-69f8-4e56-a794-c178e651f8f9","block_type":"box","text":"In certain instances, BlackRock may find it efficient for purposes of seeking to obtain best execution, to","page_number":166,"box":{"x":102,"y":218,"width":741,"height":12}},{"id":"f475ded4-5b30-42cc-92d9-11300402b99a","block_type":"box","text":"aggregate certain contemporaneous purchases or sale orders of its advisory accounts. In general, all","page_number":166,"box":{"x":69,"y":234,"width":721,"height":11}},{"id":"e3468a1d-35db-48dd-8e11-f580719bd39e","block_type":"box","text":"contemporaneous trades for client accounts under management by the same portfolio manager or investment team","page_number":166,"box":{"x":69,"y":249,"width":824,"height":11}},{"id":"30f4da7f-3e56-46b9-9fea-257de31902fe","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":166,"box":{"x":68,"y":264,"width":795,"height":11}},{"id":"e0add8e8-bb78-4b43-a6fd-0c2f8eb6892e","block_type":"box","text":"opportunity to achieve a more favorable execution at a potentially lower execution cost. The costs associated with an","page_number":166,"box":{"x":69,"y":279,"width":834,"height":11}},{"id":"b374ce3a-f457-4a01-86ae-990698f57144","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":166,"box":{"x":69,"y":294,"width":783,"height":11}},{"id":"9b2aac39-00b0-4c19-baf6-aa21d4053c58","block_type":"box","text":"particular portfolio manager or management team is filled at several different prices through multiple trades, all","page_number":166,"box":{"x":70,"y":309,"width":796,"height":11}},{"id":"a86e37ec-77c7-46fb-a69d-4422a0727435","block_type":"box","text":"accounts participating in the order will receive the average price except in the case of certain international markets","page_number":166,"box":{"x":69,"y":324,"width":821,"height":12}},{"id":"bf510ce8-5eeb-4fd8-9123-2341bbea0c82","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":166,"box":{"x":68,"y":339,"width":819,"height":12}},{"id":"78b8d8c1-d867-4fe6-8e10-c0d463d14d6b","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":166,"box":{"x":70,"y":355,"width":771,"height":11}},{"id":"6c467b78-a802-42e8-aeb5-63ed539027e9","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":166,"box":{"x":68,"y":370,"width":815,"height":11}},{"id":"3ae753f2-fad5-46d9-8ef3-67b9c13ff27f","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":166,"box":{"x":68,"y":385,"width":835,"height":11}},{"id":"d2642522-b2bf-4fc7-ae97-4f8645a7a4cb","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":166,"box":{"x":68,"y":400,"width":817,"height":11}},{"id":"09a740e1-38a4-4198-8fe8-4c3e7eec4773","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":166,"box":{"x":68,"y":415,"width":823,"height":11}},{"id":"6909d28e-c9d1-4064-8d66-69afb729db7e","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":166,"box":{"x":69,"y":430,"width":803,"height":11}},{"id":"90cc06fb-46da-4609-afe3-77d3b3cd0dce","block_type":"box","text":"A Fund will not purchase securities during the existence of any underwriting or selling group relating to such","page_number":166,"box":{"x":101,"y":453,"width":767,"height":11}},{"id":"10a85844-c8f7-4274-bdb5-fae7e9524d35","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":166,"box":{"x":69,"y":468,"width":826,"height":11}},{"id":"16b2e586-ad52-4dcb-bda6-a8a7909a085a","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":166,"box":{"x":69,"y":483,"width":816,"height":11}},{"id":"1503b2a4-3a6e-4eb7-bbce-7f3e82dafe46","block_type":"box","text":"Investment Company Act. In no instance will portfolio securities be purchased from or sold to BlackRock, BRIL or any","page_number":166,"box":{"x":70,"y":498,"width":833,"height":11}},{"id":"cea9e579-5559-4b48-815e-5c9ec33b3b16","block_type":"box","text":"affiliated person of the foregoing entities except as permitted by Commission exemptive order or by applicable law.","page_number":166,"box":{"x":69,"y":513,"width":818,"height":12}},{"id":"a42e2784-525d-4afa-a017-608d4c25b6ae","block_type":"box","text":"A Fund’s purchase and sale orders for securities may be combined with those of other investment companies,","page_number":166,"box":{"x":101,"y":536,"width":786,"height":11}},{"id":"7a60be20-dd0c-4096-a452-683e1a0afd1a","block_type":"box","text":"clients or accounts that BlackRock manages or advises. If purchases or sales of portfolio securities of a Fund and","page_number":166,"box":{"x":69,"y":551,"width":814,"height":11}},{"id":"7c3c4970-283e-47fa-8a8e-f19123f4a6b5","block_type":"box","text":"one or more other accounts managed or advised by BlackRock are considered at or about the same time,","page_number":166,"box":{"x":69,"y":566,"width":751,"height":11}},{"id":"a453f5ab-ea73-400f-a229-6350e94056ed","block_type":"box","text":"transactions in such securities are allocated among the Fund and the other accounts in a manner deemed equitable","page_number":166,"box":{"x":68,"y":582,"width":829,"height":11}},{"id":"1d8ba1d2-bfc7-488d-aef9-74e7af5e7e90","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":166,"box":{"x":68,"y":596,"width":799,"height":12}},{"id":"42aca00d-4b69-4e24-8e1f-83822885b465","block_type":"box","text":"security as far as a Fund is concerned. However, in other cases, it is possible that the ability to participate in volume","page_number":166,"box":{"x":69,"y":612,"width":834,"height":11}},{"id":"be4c5114-9381-410e-ab3c-7ee4b3ee7496","block_type":"box","text":"transactions and to negotiate lower transaction costs will be beneficial to the Fund. BlackRock may deal, trade and","page_number":166,"box":{"x":68,"y":627,"width":820,"height":11}},{"id":"1b14996e-c347-4807-a351-c88235852407","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":166,"box":{"x":70,"y":642,"width":812,"height":11}},{"id":"a4531558-6355-440b-8452-3eec47d1a4a8","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":166,"box":{"x":69,"y":657,"width":781,"height":10}},{"id":"269e1fb9-14f1-4205-90e8-842c881f2a15","block_type":"box","text":"conformity with the Investment Company Act and Commission rules and regulations. Under these provisions, any","page_number":166,"box":{"x":69,"y":672,"width":805,"height":11}},{"id":"83477a32-048a-44fa-8e23-1d21b994f0c5","block_type":"box","text":"commissions paid to affiliated brokers or dealers must be reasonable and fair compared to the commissions charged","page_number":166,"box":{"x":69,"y":687,"width":840,"height":11}},{"id":"0d54a51f-0565-4a1b-9256-aa508f9e4df0","block_type":"box","text":"by other brokers or dealers in comparable transactions. A Fund will not deal with affiliates in principal transactions","page_number":166,"box":{"x":69,"y":702,"width":815,"height":11}},{"id":"a7963656-6193-4835-8c2b-299fae5caa71","block_type":"box","text":"unless permitted by applicable Commission rules or regulations, or by Commission exemptive order.","page_number":166,"box":{"x":69,"y":718,"width":713,"height":11}},{"id":"18d8abff-a721-4560-90aa-b7e6612595d5","block_type":"box","text":"Portfolio Turnover","page_number":166,"box":{"x":69,"y":748,"width":129,"height":9}},{"id":"7914368e-03ef-474d-8478-61a5948af5a7","block_type":"box","text":"The portfolio turnover rate is calculated by dividing the lesser of a Fund’s annual sales or purchases of portfolio","page_number":166,"box":{"x":101,"y":770,"width":798,"height":12}},{"id":"b3287f4a-1c43-4841-8403-e0c88fd6285b","block_type":"box","text":"securities (exclusive of purchases or sales of U.S. Government Securities and all other securities whose maturities at","page_number":166,"box":{"x":69,"y":785,"width":839,"height":11}},{"id":"b9ff7a23-c39d-4d15-b73c-ad9a5814c3b9","block_type":"box","text":"the time of acquisition were one year or less) by the monthly average value of the securities in the portfolio during","page_number":166,"box":{"x":68,"y":801,"width":814,"height":11}},{"id":"b3dde5bf-6c80-4b7d-a2fb-fc84989b0c47","block_type":"box","text":"the year. A high rate of portfolio turnover results in certain tax consequences, such as increased capital gain","page_number":166,"box":{"x":68,"y":816,"width":777,"height":11}},{"id":"4ad3e695-0f19-4e63-b85c-da2f3c169177","block_type":"box","text":"dividends and/or ordinary income dividends, and in correspondingly greater transaction costs in the form of dealer","page_number":166,"box":{"x":69,"y":831,"width":818,"height":11}},{"id":"71d25f60-6cd5-4c54-87b4-ddca1b3bd2a1","block_type":"box","text":"spreads and brokerage commissions, which are borne directly by a Fund.","page_number":166,"box":{"x":69,"y":846,"width":519,"height":11}},{"id":"133e0efb-9940-4e0d-8437-5ee5c39f2417","block_type":"box","text":"II-128","page_number":166,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"8607715e-6ae9-43ac-85df-963da99863c4","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":166,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"67b629f4-6db8-4e83-9990-9054202da527","block_type":"box","text":"DIVIDENDS AND TAXES","page_number":167,"box":{"x":396,"y":45,"width":186,"height":10}},{"id":"3de52676-d20c-4b46-9d23-c502dcc35766","block_type":"box","text":"Dividends","page_number":167,"box":{"x":69,"y":76,"width":69,"height":8}},{"id":"728b906c-1e82-4c6e-9b41-dc3626b17288","block_type":"box","text":"Each Fund intends to distribute substantially all of its net investment income, if any. Dividends from such net","page_number":167,"box":{"x":102,"y":98,"width":776,"height":11}},{"id":"419d460f-d9a6-4236-98dc-419f31aac59d","block_type":"box","text":"investment income are paid as set forth in each Fund’s Prospectus. Each Fund also intends to distribute all net","page_number":167,"box":{"x":70,"y":113,"width":795,"height":11}},{"id":"719a8ab8-4745-4711-8f4e-4c36602e0284","block_type":"box","text":"realized capital gains, if any, as set forth in such Fund’s Prospectus. From time to time, a Fund may declare a special","page_number":167,"box":{"x":69,"y":128,"width":837,"height":12}},{"id":"c5ac3328-a56b-4dc5-9e58-0aafe5f26034","block_type":"box","text":"distribution at or about the end of the calendar year in order to comply with U.S. federal tax requirements that certain","page_number":167,"box":{"x":69,"y":143,"width":836,"height":12}},{"id":"e5e11447-fccc-4759-84ba-7dd2b3c33799","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":167,"box":{"x":70,"y":159,"width":822,"height":11}},{"id":"f7bbb3c7-a57d-49d1-b77d-1e99834dfd37","block_type":"box","text":"net income from certain foreign currency transactions, such income will be distributed at least annually.","page_number":167,"box":{"x":69,"y":174,"width":739,"height":11}},{"id":"9fb19305-9440-47a2-9911-c4b5ec8fa33c","block_type":"box","text":"For information concerning the manner in which dividends may be reinvested automatically in shares of each","page_number":167,"box":{"x":102,"y":196,"width":773,"height":12}},{"id":"70b1e180-0456-4e2d-ab76-fe73ae3689bc","block_type":"box","text":"Fund, as applicable, see “Shareholder Services — Automatic Dividend Reinvestment Plan.” Shareholders may also","page_number":167,"box":{"x":70,"y":212,"width":819,"height":11}},{"id":"197cf670-63c7-4d1a-b764-d7eade0d628d","block_type":"box","text":"elect in writing to receive any such dividends in cash. Dividends are taxable to shareholders, as discussed below,","page_number":167,"box":{"x":69,"y":227,"width":807,"height":11}},{"id":"f2780235-bee4-4de5-8581-2ed35b52e3ee","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":167,"box":{"x":68,"y":242,"width":800,"height":11}},{"id":"30b67412-d216-4a72-adeb-dc1ec1129932","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":167,"box":{"x":69,"y":257,"width":801,"height":11}},{"id":"154a7284-19f8-4a98-9c54-5e513efe80d6","block_type":"box","text":"result of the service, distribution and higher transfer agency fees applicable to CDSC shares, the service fees","page_number":167,"box":{"x":69,"y":272,"width":783,"height":11}},{"id":"aed2b75c-52dd-4895-8253-d9f4ee8489e5","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":167,"box":{"x":69,"y":287,"width":820,"height":11}},{"id":"12163294-286b-4d36-b1c9-1edf37860437","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":167,"box":{"x":69,"y":302,"width":794,"height":11}},{"id":"0ff0c211-2aa0-4737-8926-cf8fe8db6ae1","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":167,"box":{"x":69,"y":317,"width":834,"height":12}},{"id":"d15ff47c-6fa9-4fe5-965b-4c2a132998be","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":167,"box":{"x":68,"y":332,"width":826,"height":11}},{"id":"e9fd59d2-d3c1-419f-b63e-e30064ef1824","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":167,"box":{"x":69,"y":348,"width":816,"height":11}},{"id":"73763808-fa4b-4122-bff3-70c43845a27b","block_type":"box","text":"fees and higher transfer agency fees applicable to CDSC shares.","page_number":167,"box":{"x":68,"y":363,"width":461,"height":11}},{"id":"8592da9b-b7b3-468a-9354-79ae69b53526","block_type":"box","text":"Taxes","page_number":167,"box":{"x":68,"y":393,"width":42,"height":9}},{"id":"ba52d772-3c17-4018-8d46-898f99665234","block_type":"box","text":"Each Fund intends to continue to qualify for the special tax treatment afforded to regulated investment","page_number":167,"box":{"x":102,"y":416,"width":732,"height":11}},{"id":"bdced525-f4f8-4cac-878d-da510323e009","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":167,"box":{"x":69,"y":431,"width":825,"height":11}},{"id":"79a20ec2-4ce4-4d98-828e-20c8c0ecaf1a","block_type":"box","text":"U.S. federal income tax on the part of its investment company taxable income and net realized capital gains that it","page_number":167,"box":{"x":70,"y":446,"width":817,"height":11}},{"id":"32acac8c-fefe-481e-a21c-f4f4cc9362c4","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":167,"box":{"x":69,"y":461,"width":832,"height":11}},{"id":"b01eee74-9083-45d6-8988-ec1649eee489","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":167,"box":{"x":69,"y":476,"width":791,"height":11}},{"id":"c99de500-4486-4081-a29f-975b932ee900","block_type":"box","text":"company, a Fund must meet certain requirements regarding the source of its income and the composition and","page_number":167,"box":{"x":69,"y":491,"width":786,"height":12}},{"id":"ce2c1f6b-3e46-4229-b2a8-73605138a77b","block_type":"box","text":"diversification of its assets. See Part II, “Investment Risks and Considerations—Investment Restrictions (All Funds)”","page_number":167,"box":{"x":69,"y":506,"width":831,"height":11}},{"id":"e1ba8550-d83a-452c-bbb6-590c532fbf10","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":167,"box":{"x":68,"y":521,"width":819,"height":12}},{"id":"4db00d4b-9a3c-4c2a-815a-31588fdf7412","block_type":"box","text":"underlying assets of the Master Portfolio in which it has invested for purposes of satisfying the asset diversification","page_number":167,"box":{"x":69,"y":537,"width":824,"height":11}},{"id":"dfdb16a1-3a71-40c4-9919-d30994c503c2","block_type":"box","text":"requirement and various other requirements of the Code applicable to regulated investment companies.","page_number":167,"box":{"x":69,"y":552,"width":739,"height":11}},{"id":"b74fc554-7382-409c-96ea-10689da0c122","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":167,"box":{"x":101,"y":574,"width":792,"height":12}},{"id":"da83fd0e-e05a-4f24-8c56-4afe5d72efec","block_type":"box","text":"failure to diversify its holdings in the manner described above by paying a tax, by disposing of certain assets, or by","page_number":167,"box":{"x":68,"y":589,"width":819,"height":12}},{"id":"6e20d45f-5a83-4ac1-b300-7794a36a2c55","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":167,"box":{"x":70,"y":605,"width":830,"height":11}},{"id":"66c2685b-d316-489b-8fdc-c917cc1a4fc5","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":167,"box":{"x":68,"y":620,"width":744,"height":11}},{"id":"96655669-f64a-4e30-848c-a0b77aa18fa2","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":167,"box":{"x":69,"y":635,"width":835,"height":11}},{"id":"b4d31c0f-376c-4495-841c-0d1d99a9202d","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":167,"box":{"x":69,"y":650,"width":808,"height":11}},{"id":"cb929458-0d9a-42f7-bdfd-78192b07e3be","block_type":"box","text":"company with respect to items attributable to an interest in a qualified publicly-traded partnership. A Fund’s","page_number":167,"box":{"x":69,"y":665,"width":767,"height":11}},{"id":"32b9e9ce-997d-437d-be34-5cc7f43c2348","block_type":"box","text":"investments in partnerships, including in qualified publicly-traded partnerships, may result in the Fund being subject","page_number":167,"box":{"x":70,"y":680,"width":826,"height":12}},{"id":"7247d51e-da96-479b-b8f4-668a0778da3e","block_type":"box","text":"to state, local, or non-U.S. income, franchise or withholding tax liabilities.","page_number":167,"box":{"x":68,"y":695,"width":521,"height":12}},{"id":"40a945b9-b418-4914-9c1f-3e7affe07495","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":167,"box":{"x":102,"y":718,"width":798,"height":11}},{"id":"e166e281-401f-45b5-97e4-7690b803560f","block_type":"box","text":"qualify as a regulated investment company under the Code, notwithstanding the availability of certain relief","page_number":167,"box":{"x":69,"y":733,"width":762,"height":11}},{"id":"6abc201b-d7dc-4db0-8d2a-45e362ec236a","block_type":"box","text":"provisions, such Fund would be taxed in the same manner as an ordinary corporation and all distributions from","page_number":167,"box":{"x":70,"y":748,"width":789,"height":11}},{"id":"ac1c6acc-76ac-4702-9561-119ba08b9a14","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":167,"box":{"x":69,"y":763,"width":837,"height":12}},{"id":"9f50e3cc-b469-40b0-a5ee-bd3c61a111dd","block_type":"box","text":"ordinary dividend income eligible for taxation at a reduced tax rate for non-corporate shareholders and the dividends","page_number":167,"box":{"x":69,"y":778,"width":831,"height":12}},{"id":"2817cbf2-2982-4f2a-90e4-71c1604752a0","block_type":"box","text":"received deduction for corporate shareholders. However, a Municipal Fund’s distributions derived from income on tax","page_number":167,"box":{"x":69,"y":794,"width":837,"height":11}},{"id":"41125430-73eb-469e-848b-6f7b3beccd47","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":167,"box":{"x":69,"y":809,"width":825,"height":11}},{"id":"1bdfbdcf-1d92-4a25-9cc7-1c3ec2e8424a","block_type":"box","text":"series of a regulated investment company that consists of multiple series is treated as a separate corporation for","page_number":167,"box":{"x":69,"y":824,"width":811,"height":11}},{"id":"65f768b5-6f71-4264-aa51-bbe9616ee710","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":167,"box":{"x":70,"y":839,"width":813,"height":11}},{"id":"bff66245-3862-4e6f-ad56-e742c7a37ce8","block_type":"box","text":"under the rules for regulated investment companies. Losses in one series of a regulated investment company do not","page_number":167,"box":{"x":69,"y":854,"width":834,"height":11}},{"id":"73a0bb0c-02d6-4d04-a720-46793e099ff0","block_type":"box","text":"offset gains in another, and the requirements (other than certain organizational requirements) for qualifying for","page_number":167,"box":{"x":69,"y":869,"width":790,"height":11}},{"id":"640e0099-a0e8-41b5-bbaf-c094c55b14e0","block_type":"box","text":"regulated investment company status will be determined at the level of the individual series. In the following","page_number":167,"box":{"x":69,"y":884,"width":771,"height":12}},{"id":"7943ebcf-c577-46ee-a683-05041848a5ca","block_type":"box","text":"discussion, the term “Fund” means each individual series, if applicable.","page_number":167,"box":{"x":69,"y":899,"width":512,"height":11}},{"id":"d1867094-4cc7-4523-afa3-bfc2dcb98317","block_type":"box","text":"II-129","page_number":167,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"b41fcedc-05a5-4b19-8303-208c49f36375","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":167,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4d04a11d-9f33-4d68-a01b-53f9301fab1c","block_type":"box","text":"The Code requires a regulated investment company to pay a nondeductible 4% excise tax to the extent the","page_number":168,"box":{"x":101,"y":45,"width":759,"height":11}},{"id":"c8a3b73a-8c95-4964-98cb-420de514d62e","block_type":"box","text":"regulated investment company does not distribute, during each calendar year, at least 98% of its ordinary income,","page_number":168,"box":{"x":69,"y":60,"width":813,"height":11}},{"id":"d210d6ac-8aa4-4fc3-943b-ada4664110fb","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":168,"box":{"x":69,"y":75,"width":830,"height":11}},{"id":"2818a0a1-7bb6-436c-a28c-9920544a7d52","block_type":"box","text":"the regulated investment company’s taxable year ended on October 31, plus certain undistributed amounts from the","page_number":168,"box":{"x":68,"y":90,"width":832,"height":11}},{"id":"01621550-6e93-46d1-8ede-7000b352f156","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":168,"box":{"x":70,"y":105,"width":825,"height":11}},{"id":"6fd23c41-a621-4f6e-98ac-ea63f8e16469","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":168,"box":{"x":70,"y":120,"width":810,"height":11}},{"id":"bab7bdcf-2a29-4335-a097-5a1ddfaeaa15","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":168,"box":{"x":69,"y":135,"width":828,"height":12}},{"id":"e7991ada-e61c-4684-afde-585558c308ea","block_type":"box","text":"the tax only on the amount by which it does not meet the foregoing distribution requirements.","page_number":168,"box":{"x":68,"y":150,"width":666,"height":12}},{"id":"844d4068-95e3-4461-a2aa-45b544ab9771","block_type":"box","text":"Net capital loss carryforwards may be applied against realized capital gains in each succeeding year, until they","page_number":168,"box":{"x":102,"y":173,"width":790,"height":11}},{"id":"09b2702f-f49b-4c94-8f9a-c602a59141db","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":168,"box":{"x":69,"y":188,"width":830,"height":12}},{"id":"aa828472-7872-4de7-a90e-1acfb370bd0a","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":168,"box":{"x":69,"y":203,"width":770,"height":12}},{"id":"04cc3795-61eb-44cc-972f-a546af4008fb","block_type":"box","text":"limitation.","page_number":168,"box":{"x":70,"y":219,"width":68,"height":8}},{"id":"1343bf86-c765-4693-a46e-08d64ae2ff7e","block_type":"box","text":"Dividends paid by a Fund from its ordinary income or from an excess of net short-term capital gain over net long","page_number":168,"box":{"x":102,"y":241,"width":803,"height":11}},{"id":"7fe43e7e-86ea-4a5e-a3c2-8693022ba339","block_type":"box","text":"term capital loss (together referred to as “ordinary income dividends”) are taxable to shareholders as ordinary","page_number":168,"box":{"x":68,"y":256,"width":790,"height":12}},{"id":"0fb81c2d-5954-43d9-b711-ec74ec7ef195","block_type":"box","text":"income. Distributions made from an excess of net long-term capital gain over net short-term capital loss (including","page_number":168,"box":{"x":70,"y":271,"width":815,"height":12}},{"id":"8b5753d1-b9f7-4c05-bb91-47983712e4f6","block_type":"box","text":"gains or losses from certain transactions in futures and options) (“capital gain dividends”) are taxable to","page_number":168,"box":{"x":68,"y":286,"width":748,"height":12}},{"id":"d4c6a328-808a-453b-a0bf-732f1b26781e","block_type":"box","text":"shareholders as long-term capital gains, regardless of the length of time the shareholder has owned Fund shares.","page_number":168,"box":{"x":69,"y":302,"width":811,"height":11}},{"id":"1cd4244c-a729-4d4e-9cca-a1117639d442","block_type":"box","text":"Distributions paid by a Fund that are reported as exempt-interest dividends will not be subject to regular U.S. federal","page_number":168,"box":{"x":70,"y":317,"width":829,"height":11}},{"id":"0e4f5ba3-4465-4649-a6e4-7a0575e23eee","block_type":"box","text":"income tax. Certain dividend income and long-term capital gains are eligible for taxation at a reduced rate that","page_number":168,"box":{"x":70,"y":332,"width":785,"height":11}},{"id":"a4e324c1-6496-475e-8a94-3197a9d3e73f","block_type":"box","text":"applies to non-corporate shareholders. Under these rules, the portion of ordinary income dividends constituting","page_number":168,"box":{"x":69,"y":347,"width":795,"height":11}},{"id":"3c3e5b04-a68d-4192-9007-0d6cd38abb1e","block_type":"box","text":"“qualified dividend income” when paid by a regulated investment company to a non-corporate shareholder may be","page_number":168,"box":{"x":70,"y":362,"width":809,"height":11}},{"id":"086d15e9-30c8-4dff-b1ff-7e5897ae6e38","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":168,"box":{"x":68,"y":377,"width":814,"height":12}},{"id":"2a3dbf9a-85e7-4aa0-943f-748c43c2f4f8","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":168,"box":{"x":68,"y":392,"width":822,"height":12}},{"id":"12a03243-bc46-499a-969d-1a782290fde3","block_type":"box","text":"the date on which the shares become ex-dividend with respect to such dividend (or, in the case of certain","page_number":168,"box":{"x":68,"y":407,"width":751,"height":11}},{"id":"275c032a-e41a-466e-a1f1-b1c133a25a35","block_type":"box","text":"accumulated dividends with respect to preferred stocks, the shareholder has held the shares on which the dividend","page_number":168,"box":{"x":69,"y":423,"width":823,"height":11}},{"id":"1ceb600c-6e69-4107-aa9b-de7024c45fd2","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":168,"box":{"x":68,"y":438,"width":817,"height":11}},{"id":"f9bf02d5-a128-4401-959a-93a2d2de3e67","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":168,"box":{"x":68,"y":453,"width":813,"height":11}},{"id":"0ed7785b-6a9e-45b8-bf14-ae4619e6016f","block_type":"box","text":"are derived from income on debt securities, certain types of preferred stock treated as debt for U.S. federal income","page_number":168,"box":{"x":69,"y":468,"width":825,"height":11}},{"id":"e7a66aff-a98c-41be-ba81-449e77c7ae4c","block_type":"box","text":"tax purposes and short-term capital gains, such distributions will not constitute “qualified dividend income.” In","page_number":168,"box":{"x":68,"y":483,"width":789,"height":11}},{"id":"4c0ce603-5c63-4146-83fd-a6cbc8bf3a5e","block_type":"box","text":"addition, distributions that are derived from securities lending income, such as substitute dividend payments, will not","page_number":168,"box":{"x":69,"y":498,"width":836,"height":11}},{"id":"3404dd96-7e3e-4191-99ca-28a32259903a","block_type":"box","text":"constitute “qualified dividend income.”","page_number":168,"box":{"x":69,"y":513,"width":275,"height":11}},{"id":"e8c47d25-6ee5-42ee-bdd7-292a6c558e37","block_type":"box","text":"A 3.8% Medicare tax is imposed on the net investment income (which includes taxable dividends and redemption","page_number":168,"box":{"x":101,"y":536,"width":806,"height":11}},{"id":"327c6b15-7563-456b-b23a-a325a0dd1c41","block_type":"box","text":"proceeds) of certain individuals, trusts and estates.","page_number":168,"box":{"x":70,"y":551,"width":368,"height":11}},{"id":"d584d000-c793-4716-b006-b2fb283572b6","block_type":"box","text":"A Fund’s net capital gain (the excess of net long-term capital gains over net short-term capital losses) is not","page_number":168,"box":{"x":101,"y":574,"width":772,"height":11}},{"id":"249f0f97-240b-4990-8ce2-5afc2ececf39","block_type":"box","text":"subject to the 90% distribution requirement for taxation as a regulated investment company, described above. If a","page_number":168,"box":{"x":69,"y":589,"width":811,"height":11}},{"id":"7ff1f785-3354-4982-955d-2244e354c4f9","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":168,"box":{"x":70,"y":604,"width":745,"height":11}},{"id":"3e3d7ed7-5d2a-490b-816f-20938756938b","block_type":"box","text":"undistributed capital gain in a written statement furnished to its shareholders, who will be required to include in","page_number":168,"box":{"x":69,"y":619,"width":795,"height":11}},{"id":"6cfa66c0-69e5-441c-9198-cfcb04e2e930","block_type":"box","text":"income, as long-term capital gain, their proportionate shares of such undistributed net capital gain, will be deemed to","page_number":168,"box":{"x":70,"y":634,"width":838,"height":12}},{"id":"9bb28110-0d6f-47d7-94a2-02fe8c611810","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":168,"box":{"x":69,"y":649,"width":809,"height":12}},{"id":"93ffe9bd-6432-4636-a797-8964915ac43e","block_type":"box","text":"exceeds that liability) their proportionate shares of the tax paid by the Fund on that gain, and shall increase the tax","page_number":168,"box":{"x":69,"y":664,"width":822,"height":12}},{"id":"215ce4f0-04a8-4201-870a-072231af1806","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":168,"box":{"x":69,"y":680,"width":838,"height":11}},{"id":"56b71bbf-f81d-4122-a325-ffc809cf59d7","block_type":"box","text":"against their taxes.","page_number":168,"box":{"x":69,"y":695,"width":135,"height":11}},{"id":"714fe912-8fc6-4d31-b227-e6bd883ff4b9","block_type":"box","text":"Distributions in excess of a Fund’s current and accumulated earnings and profits will first reduce the adjusted","page_number":168,"box":{"x":102,"y":717,"width":783,"height":12}},{"id":"441d1977-c14f-4d0d-969c-94716e27c106","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":168,"box":{"x":68,"y":732,"width":812,"height":12}},{"id":"9bd43066-947c-4100-9ec7-a20f7c486714","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":168,"box":{"x":69,"y":748,"width":769,"height":11}},{"id":"0d19d5a7-0cb2-4aab-8a35-4bce2b711ac5","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":168,"box":{"x":69,"y":763,"width":805,"height":11}},{"id":"d3b397be-bdd6-4112-8904-a3f2ec8aabaa","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":168,"box":{"x":69,"y":778,"width":824,"height":11}},{"id":"9b3322b3-1561-4e49-bd0b-98e5e2b62d6b","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":168,"box":{"x":68,"y":793,"width":831,"height":11}},{"id":"5c1e9ceb-120d-4324-8c48-cf493cd1c09a","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":168,"box":{"x":68,"y":808,"width":817,"height":11}},{"id":"bfaee4cf-399a-4a6f-9e9b-1b834e9bf038","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":168,"box":{"x":70,"y":823,"width":797,"height":12}},{"id":"46a394d5-d0c6-4cc6-bdc7-dd30014aaa66","block_type":"box","text":"dividends received by the shareholder.","page_number":168,"box":{"x":69,"y":839,"width":272,"height":10}},{"id":"50c15f79-589b-4e1a-8dd1-485e47834205","block_type":"box","text":"Ordinary income and capital gain dividends are taxable to shareholders even if they are reinvested in additional","page_number":168,"box":{"x":102,"y":861,"width":792,"height":11}},{"id":"54d09bc6-7707-44bb-9afe-427e6f3c2992","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":168,"box":{"x":69,"y":876,"width":835,"height":11}},{"id":"28746992-6ab1-4197-b053-64fc62e5a63f","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":168,"box":{"x":68,"y":891,"width":809,"height":11}},{"id":"dfd6d7e1-0f46-4138-ac8f-9ff29ebadd0f","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":168,"box":{"x":68,"y":906,"width":819,"height":11}},{"id":"a892f813-6ef6-45ab-96be-d7cff4538a1f","block_type":"box","text":"II-130","page_number":168,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"59156ea2-046e-421e-900d-3bb39299662f","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":168,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5e736291-3e3e-43c5-bee2-0908fde412ca","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":169,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"1ab8492c-30b8-48a0-b7ee-cd3fc703e67f","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":169,"box":{"x":69,"y":60,"width":794,"height":11}},{"id":"5570dde7-ca83-416e-83ab-35ac1d57a4d7","block_type":"box","text":"calendar taxable year, if the Fund reports more capital gain dividends than it earns in such taxable year, then the","page_number":169,"box":{"x":69,"y":75,"width":804,"height":11}},{"id":"0cfe067d-bba5-4b16-928f-d416caf99d8b","block_type":"box","text":"Fund will reduce the amounts reported as capital gains. Where possible, such reduction will first be allocated to","page_number":169,"box":{"x":70,"y":90,"width":797,"height":11}},{"id":"d5f92e65-265c-40e9-825d-4de2207d892f","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":169,"box":{"x":69,"y":105,"width":810,"height":11}},{"id":"0080b19d-cdd6-43e9-85e4-9830f12339f1","block_type":"box","text":"taxable year, certain net capital losses arising after October 31 of the current taxable year, and certain net ordinary","page_number":169,"box":{"x":68,"y":120,"width":826,"height":12}},{"id":"fc1b8f34-a4d1-47a5-b12a-63efa1d509bd","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":169,"box":{"x":70,"y":135,"width":772,"height":12}},{"id":"3d39f7fb-b5c7-4b4e-b0d2-6a90c1745622","block_type":"box","text":"increasing the amount of dividends otherwise includible in the shareholder’s income with respect to the current","page_number":169,"box":{"x":70,"y":150,"width":795,"height":12}},{"id":"9e843781-685d-431e-9451-840c4e45d181","block_type":"box","text":"taxable year.","page_number":169,"box":{"x":68,"y":166,"width":89,"height":11}},{"id":"d529bed1-1ba9-4b3d-a7d1-94bb52dc070a","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":169,"box":{"x":102,"y":188,"width":733,"height":12}},{"id":"5d3f9cf8-c04f-4b7c-ba95-0f27d89f4b9d","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":169,"box":{"x":69,"y":203,"width":832,"height":11}},{"id":"52a09f97-37e2-45f6-b9c8-2afb0f415ee2","block_type":"box","text":"basis in the converted Investor C Shares and the holding period of the acquired Investor A Shares will include the","page_number":169,"box":{"x":69,"y":218,"width":809,"height":12}},{"id":"0ff1c1af-b86e-48dd-a064-4dfa26560083","block_type":"box","text":"holding period for the converted Investor C Shares.","page_number":169,"box":{"x":69,"y":234,"width":362,"height":11}},{"id":"55522604-85ce-433a-91f8-3859869e9c5d","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":169,"box":{"x":102,"y":256,"width":795,"height":12}},{"id":"0bc4fe6e-b874-4489-9a92-19f7814ebbd1","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":169,"box":{"x":69,"y":271,"width":824,"height":12}},{"id":"ebf3cabd-9cc2-4be8-b244-c58599d5f24c","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":169,"box":{"x":69,"y":287,"width":797,"height":11}},{"id":"92a1f9dd-0935-4eeb-9582-892ae2e9181a","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":169,"box":{"x":69,"y":302,"width":791,"height":11}},{"id":"fec83861-596a-4085-ba64-bacaf0cc3247","block_type":"box","text":"privilege. Instead, such sales charge will be treated as an amount paid for the new shares.","page_number":169,"box":{"x":70,"y":317,"width":646,"height":11}},{"id":"49517bea-ad8e-4c2d-9b99-c75e833429e9","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":169,"box":{"x":101,"y":339,"width":762,"height":12}},{"id":"1a9ba4d3-4ebe-4fab-92df-637dd2d857c6","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":169,"box":{"x":69,"y":355,"width":836,"height":11}},{"id":"2beae9d3-400c-44ff-8802-a93d19188e0c","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":169,"box":{"x":69,"y":370,"width":822,"height":11}},{"id":"e5e32c88-ef24-43da-97bd-8bae2dcd1980","block_type":"box","text":"generally be treated as short-term capital gain or loss. Any loss realized upon a taxable disposition of shares held for","page_number":169,"box":{"x":68,"y":385,"width":838,"height":11}},{"id":"25fbba22-cc4c-4035-a825-4c1f03b2ed9b","block_type":"box","text":"six months or less will be treated as long-term capital loss, rather than short-term capital loss, to the extent of any","page_number":169,"box":{"x":69,"y":400,"width":820,"height":11}},{"id":"fa10ffac-bc58-43d6-81af-01d1cad82f4c","block_type":"box","text":"amounts treated as distributions to the shareholder of long-term capital gain (including any amounts credited to the","page_number":169,"box":{"x":69,"y":415,"width":823,"height":11}},{"id":"6951ec9e-4680-4500-8198-06deecc81548","block_type":"box","text":"shareholder as undistributed capital gains). Shareholders that hold shares of a Fund through a qualified tax-exempt","page_number":169,"box":{"x":69,"y":430,"width":822,"height":11}},{"id":"6adeb587-5053-4cb1-99bb-762b4d9fb324","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":169,"box":{"x":70,"y":445,"width":829,"height":11}},{"id":"3220ecaa-da43-4dad-b53d-26e0209f1bbf","block_type":"box","text":"special tax rules that apply to their investments.","page_number":169,"box":{"x":69,"y":461,"width":343,"height":11}},{"id":"f9b3435a-2a9d-4e91-a6e7-af6ba4cd3086","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":169,"box":{"x":101,"y":483,"width":807,"height":11}},{"id":"bea750b4-473e-4783-989e-587af8a2d29b","block_type":"box","text":"are acquired (whether through the automatic reinvestment of dividends or otherwise) within a 61-day period beginning","page_number":169,"box":{"x":69,"y":498,"width":839,"height":11}},{"id":"d061bf5a-94a2-446b-a1e2-867727111dd0","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":169,"box":{"x":69,"y":513,"width":799,"height":12}},{"id":"7f470f90-1f84-4f8c-b944-1994b393cefd","block_type":"box","text":"basis of the shares acquired will be adjusted to reflect the disallowed loss.","page_number":169,"box":{"x":69,"y":528,"width":534,"height":12}},{"id":"2e9d63d9-9b0c-4349-8472-72cfef3a8d36","block_type":"box","text":"A Fund is also generally required by law to report to each shareholder and to the IRS cost basis information for","page_number":169,"box":{"x":101,"y":551,"width":792,"height":11}},{"id":"b72899ec-fa6e-4ef4-9c2d-e311d6215860","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":169,"box":{"x":69,"y":566,"width":800,"height":11}},{"id":"29a5a96a-e178-4ed4-8e97-f3d48f1c43cd","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":169,"box":{"x":70,"y":581,"width":828,"height":12}},{"id":"9486afb4-9049-4596-8551-3ef9bd14c402","block_type":"box","text":"long-term or short-term. The adjusted cost basis of shares will be based on the default cost basis reporting method","page_number":169,"box":{"x":70,"y":596,"width":824,"height":12}},{"id":"9fec351e-0d7b-49d9-9d74-10eebf8d4f3c","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":169,"box":{"x":69,"y":612,"width":816,"height":11}},{"id":"6f750142-2484-4162-a639-5a70fd4a462a","block_type":"box","text":"different IRS-accepted method offered by the Fund. These requirements, however, will not apply for investments","page_number":169,"box":{"x":69,"y":627,"width":797,"height":11}},{"id":"eebb1181-c082-4c46-ae31-8a35f58698db","block_type":"box","text":"through an IRA or other tax-advantaged account. Shareholders should consult their tax advisors to determine the best","page_number":169,"box":{"x":68,"y":642,"width":840,"height":11}},{"id":"323de2f4-1850-497b-ace1-21bf94fa2152","block_type":"box","text":"cost basis method for their tax situation, and to obtain more information about how these cost basis reporting","page_number":169,"box":{"x":69,"y":657,"width":788,"height":11}},{"id":"42315a05-6ff9-4e0a-b115-b009f18b9d55","block_type":"box","text":"requirements apply to them. For shares of a Fund acquired before January 1, 2012, these requirements will not","page_number":169,"box":{"x":69,"y":672,"width":797,"height":11}},{"id":"c8105a67-0710-447d-845d-ae8231d6f2c2","block_type":"box","text":"apply, but the Fund will continue to report to the IRS the gross proceeds received by a shareholder from the sale or","page_number":169,"box":{"x":69,"y":687,"width":821,"height":11}},{"id":"69c5723f-6833-4371-a6f2-5d6085c40de7","block_type":"box","text":"redemption of such shares.","page_number":169,"box":{"x":69,"y":702,"width":195,"height":11}},{"id":"6d1b8686-cbe6-46d5-be8e-b1e35208e137","block_type":"box","text":"The Manager may determine it is in the best interest of a Fund to distribute portfolio securities in kind for the","page_number":169,"box":{"x":101,"y":725,"width":780,"height":11}},{"id":"56eeff97-50ed-4ec4-9279-5405494c0e99","block_type":"box","text":"purposes of portfolio management when meeting redemption requests. When the Manager determines to do so, a","page_number":169,"box":{"x":70,"y":740,"width":814,"height":11}},{"id":"b39d32f3-3dc2-4c83-971f-4149fcc44cee","block_type":"box","text":"Fund generally will not recognize taxable gains in respect of the portfolio securities it distributes to the redeeming","page_number":169,"box":{"x":70,"y":755,"width":810,"height":11}},{"id":"d9a06cea-642d-4721-baed-135c4039da82","block_type":"box","text":"shareholder, which may reduce the amount of taxable gains the Fund would otherwise be required to distribute.","page_number":169,"box":{"x":69,"y":770,"width":793,"height":12}},{"id":"0922cdd8-2f1c-4dfe-8240-4e5d4ee21a8d","block_type":"box","text":"While a Fund may engage in redemptions in kind that have the effect of reducing or eliminating distributable","page_number":169,"box":{"x":101,"y":793,"width":770,"height":11}},{"id":"1bb9e0bc-5ad5-4483-9637-6a832562592b","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":169,"box":{"x":69,"y":808,"width":817,"height":11}},{"id":"91637c22-b06c-4361-a9c3-0fdf7439105c","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":169,"box":{"x":69,"y":823,"width":833,"height":12}},{"id":"5d80cd9d-8706-4f5e-b965-6e059bae47d9","block_type":"box","text":"that each Fund will distribute capital gains.","page_number":169,"box":{"x":68,"y":839,"width":305,"height":11}},{"id":"be00cd0a-82a7-4c0f-b668-df94d4fa6ee9","block_type":"box","text":"Certain Funds may invest in derivative contracts such as options, futures contracts, forward contracts and swap","page_number":169,"box":{"x":102,"y":861,"width":799,"height":11}},{"id":"94aba23c-3b3a-4d68-bd43-c3af91b54048","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":169,"box":{"x":69,"y":876,"width":791,"height":11}},{"id":"b92ce45a-6066-440a-8714-703bb7f22002","block_type":"box","text":"investment in the underlying security and may adversely affect the timing, character and amount of income the Fund","page_number":169,"box":{"x":70,"y":891,"width":826,"height":12}},{"id":"1a67b3a1-04eb-4a95-b2bd-70967ee3d0a9","block_type":"box","text":"realizes from its investments. As a result, a larger portion of the Fund’s distributions may be treated as ordinary","page_number":169,"box":{"x":69,"y":906,"width":803,"height":12}},{"id":"86b8f8b8-ec01-4c90-8183-ff1f7e9ad21b","block_type":"box","text":"II-131","page_number":169,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"6feaca4e-160a-4d23-a47e-54392cd9fda9","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":169,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"39c51644-92d8-4664-b6c8-25527b8e7b9c","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":170,"box":{"x":70,"y":45,"width":825,"height":11}},{"id":"f5adb7e8-30dc-4e88-94af-6e09c2027b6d","block_type":"box","text":"(and, for purposes of the 4% excise tax, certain other dates as prescribed under the Code) are generally “marked-to","page_number":170,"box":{"x":69,"y":60,"width":829,"height":11}},{"id":"cb99ebf9-33a2-4413-97b0-b8842d65e7d4","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":170,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"a862e49d-c06f-4bb8-be5e-e9717470b202","block_type":"box","text":"considered 60% long-term and 40% short-term capital gain or loss), which may increase the amount that must be","page_number":170,"box":{"x":69,"y":90,"width":808,"height":11}},{"id":"8e0d7a5a-cece-4f7c-8f31-9b0b700c72ba","block_type":"box","text":"distributed to meet distribution requirements and avoid the excise tax. In addition, the tax treatment of certain","page_number":170,"box":{"x":69,"y":105,"width":787,"height":11}},{"id":"f94a5771-c7d5-41b9-92d4-0aee9089c97c","block_type":"box","text":"derivative contracts, such as swap agreements, is unsettled and may be subject to future legislation, regulation or","page_number":170,"box":{"x":69,"y":120,"width":816,"height":12}},{"id":"113f9d76-c214-4bf2-9241-08cccda7e8eb","block_type":"box","text":"administrative pronouncements issued by the IRS. If such future guidance limits the Fund’s ability to use derivatives,","page_number":170,"box":{"x":69,"y":135,"width":832,"height":12}},{"id":"78c9f41f-28a9-4c39-b2d9-796894f7107c","block_type":"box","text":"the Fund may have to find other ways of achieving its investment objectives.","page_number":170,"box":{"x":68,"y":150,"width":542,"height":12}},{"id":"4dca44b6-c986-4404-9fdd-45c7529d5f44","block_type":"box","text":"Certain swap agreements, including exchange-traded swap agreements, are treated as notional principal","page_number":170,"box":{"x":102,"y":173,"width":744,"height":11}},{"id":"bacc5b29-13d9-4567-b66f-74e62a666915","block_type":"box","text":"contracts rather than as section 1256 contracts. This can affect the type of income earned by such swap","page_number":170,"box":{"x":69,"y":188,"width":751,"height":11}},{"id":"6a070ce1-e3a4-4893-b184-5abf6deeb234","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":170,"box":{"x":69,"y":203,"width":819,"height":12}},{"id":"c34cba2f-1bdf-45da-9fc9-a4d92315a12d","block_type":"box","text":"on a section 1256 contract is treated as short-term capital gain taxed at ordinary rates and 60% is treated as long","page_number":170,"box":{"x":69,"y":219,"width":823,"height":11}},{"id":"a724b6f8-cc99-496b-9f1b-8ec7d5233929","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":170,"box":{"x":68,"y":234,"width":823,"height":11}},{"id":"d17d0423-b4d2-41f5-924c-7711aa6db811","block_type":"box","text":"which may be taxable at more favorable rates than ordinary income. Proposed regulations interpret what types of","page_number":170,"box":{"x":68,"y":249,"width":807,"height":11}},{"id":"b863ff8f-b02e-42ca-b20c-0abf91359f8b","block_type":"box","text":"swap agreements are to be treated as notional principal contracts rather than as section 1256 contracts. When","page_number":170,"box":{"x":69,"y":264,"width":797,"height":11}},{"id":"5a5460a0-9abb-400b-8aa3-8b7cbd829c4c","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":170,"box":{"x":68,"y":279,"width":838,"height":11}},{"id":"956de16d-43d8-4475-b928-63830d65c6ec","block_type":"box","text":"of the distributions made to shareholders as ordinary income and less as long-term capital gains.","page_number":170,"box":{"x":69,"y":294,"width":695,"height":11}},{"id":"1fae7e86-f368-4ba9-a569-88d1d01a3aa3","block_type":"box","text":"Certain Funds may invest in zero coupon U.S. Treasury bonds and other debt securities that are issued at a","page_number":170,"box":{"x":102,"y":317,"width":768,"height":11}},{"id":"e0df861a-25da-4808-8f80-0a215db99fe6","block_type":"box","text":"discount or provide for deferred interest. Even though a Fund receives no actual interest payments on these","page_number":170,"box":{"x":69,"y":332,"width":769,"height":11}},{"id":"804c813f-1ca9-43d0-8a74-a5497cc0ffaf","block_type":"box","text":"securities, it will be deemed to receive income equal, generally, to a portion of the excess of the stated redemption","page_number":170,"box":{"x":69,"y":347,"width":822,"height":11}},{"id":"aecf1d2d-33f8-43f2-9c59-cb4f09626663","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":170,"box":{"x":70,"y":362,"width":819,"height":11}},{"id":"5f004864-6f5d-4f3a-8b6c-f0884a473fc6","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":170,"box":{"x":68,"y":377,"width":818,"height":12}},{"id":"0cfacf2c-77ce-414e-a431-e94776761f02","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":170,"box":{"x":70,"y":392,"width":830,"height":12}},{"id":"315d27c0-3883-42ab-aa56-470add75a4b5","block_type":"box","text":"in order to satisfy its distribution requirements. In addition, a Fund’s investment in foreign currencies or foreign","page_number":170,"box":{"x":70,"y":407,"width":792,"height":12}},{"id":"57e0904c-0431-4859-b78f-9aca64bc23b1","block_type":"box","text":"currency denominated or referenced debt securities, certain asset-backed securities and contingent payment and","page_number":170,"box":{"x":69,"y":423,"width":808,"height":11}},{"id":"6e2d80f8-06cd-4fd1-86ec-d6adffa23ece","block_type":"box","text":"inflation-indexed debt instruments also may increase or accelerate the Fund’s recognition of income, including the","page_number":170,"box":{"x":70,"y":438,"width":812,"height":11}},{"id":"8781b206-6473-4f6d-9a09-2d0e597d9ed5","block_type":"box","text":"recognition of taxable income in excess of cash generated by such investments. Any transaction by the Fund in","page_number":170,"box":{"x":69,"y":453,"width":789,"height":11}},{"id":"2dade442-1b10-4923-ba9f-14990c77146f","block_type":"box","text":"foreign currencies, foreign currency-denominated debt obligations or certain foreign currency options, futures","page_number":170,"box":{"x":68,"y":468,"width":777,"height":11}},{"id":"ad2a7a31-22e2-4833-a4ca-faf3d1d4c36a","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":170,"box":{"x":69,"y":483,"width":810,"height":11}},{"id":"b498e9a0-6012-457f-a70d-95dba49093af","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":170,"box":{"x":70,"y":498,"width":801,"height":11}},{"id":"f72033ba-22b8-46e2-8904-f044283d7849","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":170,"box":{"x":69,"y":513,"width":762,"height":12}},{"id":"6336f5a4-3bc7-4486-bf5d-9d11e6c8dbf2","block_type":"box","text":"potentially require the recharacterization of prior ordinary income distributions. Such ordinary income treatment may","page_number":170,"box":{"x":70,"y":528,"width":827,"height":12}},{"id":"636eb35c-8358-492a-9dc7-183b8ca278f8","block_type":"box","text":"accelerate Fund distributions to shareholders and increase the distributions taxed to shareholders as ordinary","page_number":170,"box":{"x":69,"y":544,"width":787,"height":11}},{"id":"8945b052-a995-4f9b-8263-7fda1a42ef41","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":170,"box":{"x":70,"y":559,"width":822,"height":11}},{"id":"658b6d17-0750-4db3-85c2-5a1e14e4812e","block_type":"box","text":"in subsequent taxable years.","page_number":170,"box":{"x":70,"y":574,"width":203,"height":11}},{"id":"6405de67-7d37-4bfe-a914-9c2d4f75fcb9","block_type":"box","text":"Ordinary income dividends paid to shareholders who are nonresident aliens or foreign entities (other than pass","page_number":170,"box":{"x":102,"y":596,"width":795,"height":12}},{"id":"17ad27ef-fd3d-4603-b071-b6f8dcd7c975","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":170,"box":{"x":68,"y":612,"width":816,"height":11}},{"id":"1eb5bac1-915d-44de-bfec-8c782e59ed90","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":170,"box":{"x":69,"y":627,"width":835,"height":11}},{"id":"b246a0b0-1b4a-4fc0-bdb3-5b6186ab2809","block_type":"box","text":"withholding exemption is provided under applicable treaty law. Capital gain dividends paid to shareholders that are","page_number":170,"box":{"x":68,"y":642,"width":815,"height":11}},{"id":"80909ecc-9047-432f-90f8-c327996e5a81","block_type":"box","text":"nonresident aliens or foreign entities, if and to the extent properly reported as capital gain dividends, generally will","page_number":170,"box":{"x":69,"y":657,"width":816,"height":11}},{"id":"b5b49c75-8e74-4a74-bb38-3176ff0c2cb1","block_type":"box","text":"not be subject to a 30% withholding tax, unless certain exceptions apply. Dividends derived by a regulated investment","page_number":170,"box":{"x":69,"y":672,"width":840,"height":11}},{"id":"25498ae4-cd16-4d9b-8a51-4500aa898faf","block_type":"box","text":"company from short-term capital gains and qualified net interest income (including income from original issue","page_number":170,"box":{"x":69,"y":687,"width":781,"height":11}},{"id":"af98d6cd-acf5-42dc-92f7-a41a0f9fe253","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":170,"box":{"x":69,"y":702,"width":824,"height":12}},{"id":"ae5303f3-e2ce-4f80-9c12-d4ac89126a25","block_type":"box","text":"extent properly reported as “short-term capital gain dividends” or “interest-related dividends”, respectively, generally","page_number":170,"box":{"x":69,"y":718,"width":832,"height":11}},{"id":"8a469d2a-a219-4328-b10b-98463a15a524","block_type":"box","text":"will not be subject to U.S. withholding tax. Where possible, the Funds intend to report such dividends as interest","page_number":170,"box":{"x":68,"y":733,"width":808,"height":11}},{"id":"78df2dc3-be73-47b0-a915-cb61c1bd41af","block_type":"box","text":"related dividends or short-term capital gain dividends. However, depending on its circumstances, a Fund may report","page_number":170,"box":{"x":69,"y":748,"width":826,"height":11}},{"id":"006745cf-cc68-416f-9476-8105b08eba41","block_type":"box","text":"all, some or none of its potentially eligible dividends as interest-related or as short-term capital gain dividends, and/","page_number":170,"box":{"x":69,"y":763,"width":830,"height":11}},{"id":"b5998861-535f-4081-96eb-9d130b09af4d","block_type":"box","text":"or treat such dividends, in whole or in part, as ineligible for this exemption from withholding. In order to qualify for","page_number":170,"box":{"x":69,"y":778,"width":811,"height":11}},{"id":"6b778aaa-7a6f-4a29-a5ad-ebf0f13d5fdb","block_type":"box","text":"this exemption from withholding, a foreign shareholder must comply with applicable certification requirements","page_number":170,"box":{"x":68,"y":793,"width":784,"height":11}},{"id":"866eae9c-5f31-4836-be68-29faa6abcabc","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":170,"box":{"x":69,"y":808,"width":828,"height":11}},{"id":"7ed99c6e-0a17-4ab9-aab3-7bafe12f56f8","block_type":"box","text":"Form). In the case of shares held through an intermediary, the intermediary may withhold even if the Fund reports the","page_number":170,"box":{"x":70,"y":823,"width":839,"height":12}},{"id":"82f8457b-c39f-48bf-95d4-494b208833ab","block_type":"box","text":"payment as an interest-related or short-term capital gain dividend. Foreign shareholders should contact their","page_number":170,"box":{"x":70,"y":839,"width":772,"height":11}},{"id":"d178ddcc-d236-4e23-8479-47945666f53d","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":170,"box":{"x":70,"y":853,"width":791,"height":11}},{"id":"58d12729-95c9-408f-b19f-ceba72d1b4a6","block_type":"box","text":"portion, if any, of a Fund’s distributions will be reported as interest-related dividends or short-term capital gain","page_number":170,"box":{"x":70,"y":869,"width":787,"height":11}},{"id":"33ee384c-320e-46aa-ac29-761f1386ce92","block_type":"box","text":"dividends under these rules.","page_number":170,"box":{"x":69,"y":884,"width":201,"height":9}},{"id":"05602553-5da0-429e-b1fb-f6eb5de662c3","block_type":"box","text":"II-132","page_number":170,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"bcb5b9a1-e2c7-4a76-958e-38edea6efb68","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":170,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1bf7f4c6-8748-42df-ab66-8ae9a7f5645b","block_type":"box","text":"Distributions to certain foreign shareholders by a Fund at least 50% of the assets of which are “U.S. real","page_number":171,"box":{"x":102,"y":45,"width":747,"height":11}},{"id":"b416ec28-72b9-4b6e-aaa8-4a8e593ec5c2","block_type":"box","text":"property interests” (as defined in the Code and Treasury regulations) at any time during the five-year period ending on","page_number":171,"box":{"x":70,"y":60,"width":838,"height":11}},{"id":"aa9d8fa8-f187-44ac-9742-a9d7e62af1f2","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":171,"box":{"x":68,"y":75,"width":829,"height":11}},{"id":"c8a536ae-49ef-45bb-8d11-2c7c57a1ae8f","block_type":"box","text":"real property interests (including shares in certain “U.S. real property holding corporations” such as certain REITs,","page_number":171,"box":{"x":69,"y":90,"width":817,"height":11}},{"id":"cbdf9f41-4988-4d55-8ec8-a0a4baabe3c6","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":171,"box":{"x":69,"y":105,"width":786,"height":11}},{"id":"b86611ba-d932-4f9b-b080-89e8f821183b","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":171,"box":{"x":69,"y":120,"width":800,"height":12}},{"id":"2f8e735d-8945-4d52-a1b0-a6c70e11de68","block_type":"box","text":"period ending on the date of the distributions), generally must be treated by such foreign shareholders as income","page_number":171,"box":{"x":70,"y":135,"width":807,"height":12}},{"id":"b0d538ab-d27c-4907-b6f9-f13c001fbc8d","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":171,"box":{"x":69,"y":150,"width":772,"height":12}},{"id":"6a960ef9-2f82-4ed2-9363-58a02fdd79aa","block_type":"box","text":"graduated rates applicable to U.S. shareholders, except for distributions to foreign shareholders that held no more","page_number":171,"box":{"x":68,"y":166,"width":818,"height":11}},{"id":"35b77844-83f8-41dd-8758-6ba090b61a5a","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":171,"box":{"x":68,"y":181,"width":820,"height":11}},{"id":"f92e9ff7-3447-4bcc-a612-29b6f2ac1224","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":171,"box":{"x":69,"y":196,"width":833,"height":11}},{"id":"161978a7-4ba3-4267-ac47-084740842e40","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":171,"box":{"x":69,"y":211,"width":823,"height":11}},{"id":"86686038-4f9d-4c64-bd5d-42365e47a36d","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":171,"box":{"x":69,"y":226,"width":774,"height":11}},{"id":"c1b8ad71-e0a6-4955-933f-6ff2b9a05618","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":171,"box":{"x":69,"y":241,"width":839,"height":11}},{"id":"2709feaa-e321-4dce-9cd1-804f3cc08322","block_type":"box","text":"sales or redemptions of shares held by certain foreign shareholders in such a Fund generally will be subject to U.S.","page_number":171,"box":{"x":69,"y":256,"width":822,"height":12}},{"id":"a54fcb20-b1f0-441f-b39f-46672dd9d1f0","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":171,"box":{"x":70,"y":271,"width":827,"height":12}},{"id":"1d12f670-a000-4fde-b2a3-404c7f93a7ed","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":171,"box":{"x":69,"y":286,"width":823,"height":12}},{"id":"c9ceffc1-b8e0-4285-9c69-c0ec421395d4","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":171,"box":{"x":68,"y":302,"width":827,"height":11}},{"id":"66080814-7e6b-465d-b6b7-430a98c84c31","block_type":"box","text":"at all times during the five-year period ending on the date of the sale or redemption.","page_number":171,"box":{"x":69,"y":317,"width":596,"height":11}},{"id":"9c27496d-e843-4576-b6cc-e1301788c656","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":171,"box":{"x":102,"y":339,"width":802,"height":12}},{"id":"4c57fde9-890f-40bc-8690-67583068481b","block_type":"box","text":"distributions made in the form of U.S. real property interests (including shares in certain “U.S. real property holding","page_number":171,"box":{"x":69,"y":355,"width":827,"height":11}},{"id":"0d567744-c376-41b5-956f-0208f322c509","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":171,"box":{"x":69,"y":370,"width":804,"height":11}},{"id":"6632dbba-6d9a-41b5-9cfd-78630d3f0341","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":171,"box":{"x":69,"y":385,"width":824,"height":11}},{"id":"0db0c8db-9b2e-49a8-8948-20f4b9a9fd73","block_type":"box","text":"five-year period ending on the date of the distribution) generally will cause the Fund to recognize a portion of any","page_number":171,"box":{"x":68,"y":400,"width":801,"height":11}},{"id":"48eea8f9-11f9-47c7-b41d-33762b854ca4","block_type":"box","text":"unrecognized gain in the U.S. real property interests equal to the product of (i) the excess of fair market value of","page_number":171,"box":{"x":69,"y":415,"width":803,"height":11}},{"id":"31e20758-6837-4de3-9e5b-d3c0d534ef0d","block_type":"box","text":"such U.S. real property interests over the Fund’s adjusted bases in such interests and (ii) the greatest foreign","page_number":171,"box":{"x":69,"y":430,"width":785,"height":11}},{"id":"d821b7de-891d-49fe-a19e-ba2441f34d43","block_type":"box","text":"ownership percentage of the Fund during the five-year period ending on the date of distribution.","page_number":171,"box":{"x":69,"y":445,"width":676,"height":12}},{"id":"26e19f85-d7a4-4691-8075-d644071ac8f3","block_type":"box","text":"A foreign shareholder may also be subject to certain “wash sale” rules to prevent the avoidance of the tax filing","page_number":171,"box":{"x":101,"y":468,"width":798,"height":11}},{"id":"3ca7c9f8-644c-4f1a-8301-6bc854631f11","block_type":"box","text":"and payment obligations discussed above through the sale and repurchase of Fund shares.","page_number":171,"box":{"x":69,"y":483,"width":651,"height":11}},{"id":"e3aa2f72-62c1-459c-9f07-6f6e83e2e531","block_type":"box","text":"Shareholders that are nonresident aliens or foreign entities are urged to consult their own tax advisors","page_number":171,"box":{"x":102,"y":506,"width":731,"height":11}},{"id":"3d1d31c8-bc08-4cac-9ef7-889d145d3a24","block_type":"box","text":"concerning the particular tax consequences to them of an investment in a Fund.","page_number":171,"box":{"x":69,"y":521,"width":570,"height":11}},{"id":"10a4c9ee-148d-44de-aef4-405a3bc4669e","block_type":"box","text":"Separately, a 30% withholding tax is currently imposed on U.S.-source dividends, interest and other income","page_number":171,"box":{"x":102,"y":544,"width":763,"height":11}},{"id":"7e53d6ad-a13d-4d53-9e36-5a2ffc968452","block_type":"box","text":"items paid to (i) certain foreign financial institutions and investment funds, and (ii) certain other foreign entities. To","page_number":171,"box":{"x":70,"y":559,"width":820,"height":11}},{"id":"60a0bc29-cd42-4fdd-b621-6e027223a8f7","block_type":"box","text":"avoid withholding, foreign financial institutions and investment funds will generally either need to (a) collect and","page_number":171,"box":{"x":69,"y":574,"width":794,"height":11}},{"id":"3d47a486-3292-4440-8d9d-44bad4a012b9","block_type":"box","text":"report to the IRS detailed information identifying their U.S. accounts and U.S. account holders, comply with due","page_number":171,"box":{"x":69,"y":589,"width":794,"height":11}},{"id":"925e4f2b-f4f1-4689-b23f-2def2585aff3","block_type":"box","text":"diligence procedures for identifying U.S. accounts and withhold tax on certain payments made to noncomplying","page_number":171,"box":{"x":69,"y":604,"width":791,"height":11}},{"id":"cde26382-2df0-4a17-a804-82ad4c2407af","block_type":"box","text":"foreign entities and account holders or (b) if an intergovernmental agreement is entered into and implementing","page_number":171,"box":{"x":68,"y":619,"width":791,"height":11}},{"id":"6ae5649f-c5e5-4dc6-9d04-96ac56ccdf51","block_type":"box","text":"legislation is adopted, comply with the agreement and legislation. Other foreign entities will generally either need to","page_number":171,"box":{"x":70,"y":634,"width":822,"height":12}},{"id":"98e3a8f0-e77f-49e0-8fe6-23b5238d82da","block_type":"box","text":"provide detailed information identifying each substantial U.S. owner or certify there are no such owners.","page_number":171,"box":{"x":70,"y":649,"width":739,"height":12}},{"id":"f3bbd5a3-0b3e-4b84-953d-d38d55877a0a","block_type":"box","text":"Under certain provisions of the Code, some shareholders may be subject to a 24% withholding tax on ordinary","page_number":171,"box":{"x":102,"y":672,"width":786,"height":11}},{"id":"0b6f128a-d310-4d2a-b179-84eb6b263532","block_type":"box","text":"income dividends, capital gain dividends and redemption payments (“backup withholding”). Generally, shareholders","page_number":171,"box":{"x":70,"y":687,"width":820,"height":11}},{"id":"4cbcd1e7-3b54-486c-ba9c-dfc6d6ed6111","block_type":"box","text":"subject to backup withholding will be non-corporate shareholders for whom no certified taxpayer identification number","page_number":171,"box":{"x":69,"y":702,"width":837,"height":12}},{"id":"69d4eefa-47e2-4665-a7e5-f63b532202e7","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":171,"box":{"x":70,"y":717,"width":821,"height":12}},{"id":"126f46b6-de1d-4dd1-888f-40188f91d671","block_type":"box","text":"account, an investor must certify under penalty of perjury that such number is correct and that such investor is not","page_number":171,"box":{"x":69,"y":732,"width":819,"height":12}},{"id":"5d25c643-789f-4eaf-9fba-a7565a12b513","block_type":"box","text":"otherwise subject to backup withholding. Backup withholding is not an additional tax. Any amount withheld generally","page_number":171,"box":{"x":69,"y":748,"width":826,"height":11}},{"id":"2fbbaef0-dc17-439c-88e8-54ee6cdbb022","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":171,"box":{"x":69,"y":763,"width":802,"height":11}},{"id":"5d01d197-dba1-452c-8f21-0d8d86eb7517","block_type":"box","text":"required information is timely forwarded to the IRS.","page_number":171,"box":{"x":69,"y":778,"width":364,"height":11}},{"id":"a49f449c-51ff-466a-a0e4-45b57341b6fc","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":171,"box":{"x":102,"y":800,"width":774,"height":12}},{"id":"c9cfccbd-1934-4255-97c6-c4f835061494","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":171,"box":{"x":68,"y":815,"width":787,"height":12}},{"id":"b28deeef-6462-48e7-9bd8-694628b61a2e","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":171,"box":{"x":68,"y":830,"width":835,"height":12}},{"id":"9ee2c517-6ddd-4eea-b6f8-eb6bb3ee6a2d","block_type":"box","text":"the shareholder must file a disclosure statement on IRS Form 8886 with the IRS. Direct shareholders of portfolio","page_number":171,"box":{"x":68,"y":846,"width":809,"height":11}},{"id":"f881fa8f-8888-4501-90d2-e139e53894a3","block_type":"box","text":"securities are in many cases exempted. That a loss is reportable under these regulations does not affect the legal","page_number":171,"box":{"x":69,"y":861,"width":817,"height":11}},{"id":"769cbc60-3243-4a76-a4d5-14aabab19bc6","block_type":"box","text":"determination of whether the taxpayer’s treatment of the loss is proper. Shareholders should consult their tax","page_number":171,"box":{"x":69,"y":876,"width":783,"height":11}},{"id":"b1df1d7c-403c-4b2a-ba1b-bc3aee12c084","block_type":"box","text":"advisors to determine the applicability of these regulations in light of their individual circumstances.","page_number":171,"box":{"x":69,"y":891,"width":710,"height":12}},{"id":"7ca30ca3-a113-45b8-abc1-1cb7474ad200","block_type":"box","text":"II-133","page_number":171,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"92783efd-3297-4452-90a9-047cef28ca8a","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":171,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d3669831-66c0-4d31-8673-a15dcc29f18e","block_type":"box","text":"Certain types of income received by a Fund from REITs, real estate mortgage investment conduits, taxable","page_number":172,"box":{"x":102,"y":45,"width":758,"height":11}},{"id":"36e0dafe-0f62-430c-9e1b-5f34b467d287","block_type":"box","text":"mortgage pools or other investments may cause the Fund to report some or all of its distributions as “excess","page_number":172,"box":{"x":69,"y":60,"width":782,"height":11}},{"id":"79af0d4a-7ebe-409e-9ef8-4adbb44d8740","block_type":"box","text":"inclusion income.” To Fund shareholders, such excess inclusion income may: (i) constitute taxable income, as","page_number":172,"box":{"x":70,"y":75,"width":783,"height":11}},{"id":"2f729052-2f64-432d-85a9-7dbf8d136f06","block_type":"box","text":"unrelated business taxable income (“UBTI”) for those shareholders who would otherwise be tax-exempt such as","page_number":172,"box":{"x":69,"y":90,"width":797,"height":11}},{"id":"df7dbf5d-0441-4828-a1d6-78cd42bd0b17","block_type":"box","text":"individual retirement accounts, 401(k) accounts, Keogh plans, pension plans and certain charitable entities; (ii) not","page_number":172,"box":{"x":70,"y":105,"width":822,"height":11}},{"id":"c93be2f4-c834-4b2a-a1f1-7968f2383356","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":172,"box":{"x":69,"y":120,"width":836,"height":12}},{"id":"1ae51abd-9ebb-4324-905c-7a6e5a04b04e","block_type":"box","text":"U.S. shareholders even from tax treaty countries; and (iv) cause the Fund to be subject to tax if certain “disqualified","page_number":172,"box":{"x":70,"y":135,"width":826,"height":11}},{"id":"f0ab8963-208b-4a3c-ae2d-9c4aff5d7005","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":172,"box":{"x":69,"y":150,"width":808,"height":12}},{"id":"da9bb07c-272a-4363-8743-a23e4bf1b71b","block_type":"box","text":"expected to generate excess inclusion income, but the Fund may not always be successful in doing so. Because","page_number":172,"box":{"x":69,"y":166,"width":800,"height":11}},{"id":"faa22415-99b4-4ed1-8997-4aec73e511c1","block_type":"box","text":"information about a REIT’s investments may be inadequate or inaccurate, or because a REIT may change its","page_number":172,"box":{"x":70,"y":181,"width":770,"height":11}},{"id":"00e95062-d26f-40c8-96c2-f73dd607aad7","block_type":"box","text":"investment program, the Fund may not be successful in avoiding the consequences described above. Avoidance of","page_number":172,"box":{"x":70,"y":196,"width":816,"height":11}},{"id":"412d9066-0718-4537-afe5-080bb61f261d","block_type":"box","text":"investments in REITs that generate excess inclusion income may require the Fund to forego otherwise attractive","page_number":172,"box":{"x":70,"y":211,"width":796,"height":11}},{"id":"a6acb4e7-091f-43f1-8c4e-d62c79e4d24e","block_type":"box","text":"investment opportunities.","page_number":172,"box":{"x":70,"y":226,"width":180,"height":11}},{"id":"e3c19c21-86d9-46c3-a2a4-b4538540547a","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":172,"box":{"x":102,"y":249,"width":801,"height":11}},{"id":"543fa96a-0a0a-4893-a18f-cd0265375c95","block_type":"box","text":"imposed by foreign countries. Tax conventions between certain foreign countries and the United States may reduce or","page_number":172,"box":{"x":70,"y":264,"width":839,"height":11}},{"id":"622d02b1-8686-48aa-a4ca-6a7e57822b82","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":172,"box":{"x":69,"y":279,"width":840,"height":11}},{"id":"500fc6f4-7d28-4e2c-b043-4991b17b0700","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":172,"box":{"x":68,"y":294,"width":837,"height":11}},{"id":"820ba9b4-504c-4ef1-bcc3-48e57781ff31","block_type":"box","text":"Fund, subject to certain requirements and limitations contained in the Code. For example, certain retirement","page_number":172,"box":{"x":70,"y":309,"width":774,"height":11}},{"id":"98250035-a626-4fa9-82b6-a779ffb58605","block_type":"box","text":"accounts and certain tax-exempt organizations cannot claim foreign tax credits on investments in foreign securities","page_number":172,"box":{"x":69,"y":324,"width":820,"height":12}},{"id":"74520401-7302-4fc4-8f4a-4e52d917941c","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":172,"box":{"x":69,"y":339,"width":795,"height":12}},{"id":"dd8ec006-2dfa-43eb-8fb6-df464c9f7e8f","block_type":"box","text":"respect to a security only if the holder of the security meets certain holding period requirements. Both the","page_number":172,"box":{"x":69,"y":355,"width":755,"height":11}},{"id":"2e330578-08ad-4b74-ba6a-02712a9c17f9","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":172,"box":{"x":69,"y":370,"width":811,"height":11}},{"id":"a9e20d66-0df0-4bd1-984e-8d7373f3fe32","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":172,"box":{"x":69,"y":385,"width":839,"height":11}},{"id":"c398c152-6a2e-48a6-b829-1e605166f8ae","block_type":"box","text":"the Fund. Further, to the extent that a Fund engages in securities lending with respect to a security paying income","page_number":172,"box":{"x":68,"y":400,"width":812,"height":11}},{"id":"48f337fe-8589-4791-b138-982add17199d","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":172,"box":{"x":69,"y":415,"width":829,"height":11}},{"id":"1a0f3e84-d068-4c73-94d9-05c1a58f3b41","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":172,"box":{"x":68,"y":430,"width":827,"height":11}},{"id":"871348f3-a404-4407-96e8-1e40b7fd7404","block_type":"box","text":"IRS pursuant to which shareholders of the Fund will be required to include their proportionate shares of such foreign","page_number":172,"box":{"x":70,"y":445,"width":829,"height":12}},{"id":"14cf9a2e-f8d2-4cfa-9115-76b2b1b6837b","block_type":"box","text":"taxes in their U.S. income tax returns as gross income, treat such proportionate shares as taxes paid by them, and","page_number":172,"box":{"x":68,"y":460,"width":825,"height":12}},{"id":"b4ca1d8c-1453-4451-9416-f60948d2c30f","block_type":"box","text":"deduct such proportionate shares in computing their taxable incomes or, alternatively, use them as foreign tax","page_number":172,"box":{"x":69,"y":475,"width":788,"height":12}},{"id":"5f04c71f-2dbb-4a59-a18c-797d462a6909","block_type":"box","text":"credits against their U.S. income taxes. No deductions for foreign taxes, however, may be claimed by noncorporate","page_number":172,"box":{"x":69,"y":491,"width":818,"height":11}},{"id":"cee65898-683b-4237-ac5f-cc8717e70aa4","block_type":"box","text":"shareholders who do not itemize deductions. A shareholder that is a nonresident alien individual or a foreign","page_number":172,"box":{"x":69,"y":506,"width":773,"height":11}},{"id":"fbaf9618-fa3e-404d-a918-cbe8fc6e1c21","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":172,"box":{"x":69,"y":521,"width":817,"height":11}},{"id":"7791e303-83c7-4e9d-86a8-58a92ad99710","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":172,"box":{"x":70,"y":536,"width":814,"height":11}},{"id":"843527cd-9f5f-42c1-a146-eff17e7480ef","block_type":"box","text":"having been paid by such shareholder. A Fund will report annually to its shareholders the amount per share of such","page_number":172,"box":{"x":69,"y":551,"width":821,"height":11}},{"id":"b74a0070-e7a1-4e9e-b4a9-1822d8941558","block_type":"box","text":"foreign taxes and other information needed to claim the foreign tax credit.","page_number":172,"box":{"x":68,"y":566,"width":527,"height":11}},{"id":"8ecc03f6-7d96-475e-adbc-3cc4bf6a8631","block_type":"box","text":"Certain transactions entered into by the Funds are subject to special tax rules of the Code that may, among","page_number":172,"box":{"x":102,"y":589,"width":768,"height":11}},{"id":"97f07346-9095-4d98-9422-e9d9c731dddf","block_type":"box","text":"other things, (a) affect the character of gains and losses realized, (b) disallow, suspend or otherwise limit the","page_number":172,"box":{"x":69,"y":604,"width":780,"height":11}},{"id":"2b37db00-c3a2-4514-b738-0c166beb869d","block_type":"box","text":"allowance of certain losses or deductions, and (c) accelerate the recognition of income without a corresponding","page_number":172,"box":{"x":69,"y":619,"width":797,"height":11}},{"id":"eb65ea70-338b-4f28-97aa-bd29a03cf158","block_type":"box","text":"receipt of cash (with which to make the necessary distributions to satisfy distribution requirements applicable to","page_number":172,"box":{"x":69,"y":634,"width":802,"height":11}},{"id":"78f4d60d-7016-4a2a-85ae-c2d49d2de13a","block_type":"box","text":"regulated investment companies). Operation of these rules could, therefore, affect the character, amount and timing","page_number":172,"box":{"x":69,"y":649,"width":831,"height":12}},{"id":"fe822d91-5cc3-4353-a923-9f5c94c7d265","block_type":"box","text":"of distributions to shareholders. Special tax rules also may require a Fund to mark-to-market certain types of","page_number":172,"box":{"x":69,"y":664,"width":776,"height":12}},{"id":"d15862b9-9631-43b6-97f4-06de55f56831","block_type":"box","text":"positions in its portfolio (","page_number":172,"box":{"x":70,"y":680,"width":177,"height":11}},{"id":"7377e016-5895-4f97-b224-b436a7fb90de","block_type":"box","text":"i.e.","page_number":172,"box":{"x":249,"y":680,"width":20,"height":9}},{"id":"91366dfc-30cf-47a8-bad7-2fb7d4350bfe","block_type":"box","text":", treat them as sold on the last day of the taxable year), and may result in the recognition","page_number":172,"box":{"x":272,"y":680,"width":636,"height":11}},{"id":"dfe18530-8fcc-4863-a4f3-96c250ac5d67","block_type":"box","text":"of income without a corresponding receipt of cash. Funds engaging in transactions affected by these provisions","page_number":172,"box":{"x":69,"y":695,"width":795,"height":11}},{"id":"177383e0-e854-4d7a-929f-dc09b04843c6","block_type":"box","text":"intend to monitor their transactions, make appropriate tax elections and make appropriate entries in their books and","page_number":172,"box":{"x":70,"y":710,"width":830,"height":11}},{"id":"12f93d7e-80c5-4c61-ad3f-b29cac0f10fb","block_type":"box","text":"records to lessen the effect of these tax rules and avoid any possible disqualification from the special treatment","page_number":172,"box":{"x":69,"y":725,"width":804,"height":11}},{"id":"cf2c5207-3e3e-4bc2-8cc9-1c8308cd8d29","block_type":"box","text":"afforded regulated investment companies under the Code.","page_number":172,"box":{"x":69,"y":740,"width":415,"height":11}},{"id":"5c618f3f-8af2-406b-95d2-fa5f6bff167a","block_type":"box","text":"Certain of a Fund’s investments in derivative instruments and foreign currency-denominated instruments, and","page_number":172,"box":{"x":102,"y":763,"width":781,"height":11}},{"id":"b5f9dd0c-2c46-469c-86d9-2ed0443bf3ea","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":172,"box":{"x":69,"y":778,"width":835,"height":11}},{"id":"bd04219a-8164-41e9-9d16-2f96b86b2f75","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":172,"box":{"x":70,"y":793,"width":811,"height":11}},{"id":"8ffc1c56-06a5-40f9-b4e3-e7ab009040d7","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":172,"box":{"x":69,"y":808,"width":818,"height":11}},{"id":"aeda7d80-18b6-4895-9bfa-8d9fb8a0e2d5","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":172,"box":{"x":69,"y":823,"width":820,"height":12}},{"id":"0f177cbc-0e76-4951-9f61-c6ecb27b15a4","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":172,"box":{"x":69,"y":838,"width":834,"height":11}},{"id":"9bc7016c-da47-4643-8f84-04979b277edd","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":172,"box":{"x":69,"y":853,"width":833,"height":12}},{"id":"cec01a9b-9c7e-4d2f-b49f-ea560d86eab7","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":172,"box":{"x":69,"y":869,"width":805,"height":11}},{"id":"db3c6c43-6d75-473e-abe6-7ef549cde02b","block_type":"box","text":"II-134","page_number":172,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"ebc1f5a5-bfa5-49b5-8d4e-caf6b44acfa8","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":172,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0994e29a-a7bd-4f58-8771-5b2c4030e225","block_type":"box","text":"earnings and profits (including earnings and profits arising from tax-exempt income), (ii) thereafter, as a return of","page_number":173,"box":{"x":69,"y":45,"width":805,"height":11}},{"id":"11c7534e-b4fd-4ca6-856c-2cf81eafaa9c","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":173,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"c9582d0d-b680-4eae-af87-87a2e922fb5b","block_type":"box","text":"capital asset.","page_number":173,"box":{"x":69,"y":75,"width":95,"height":11}},{"id":"d02f108a-0599-415a-9c0d-d16ad14e61a1","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":173,"box":{"x":102,"y":98,"width":787,"height":11}},{"id":"e517b0e5-11dc-44b1-b0c1-e4c1cab09280","block_type":"box","text":"indefinitely or permanently deferred as “wash sales.” Distributions of short-term capital gains by underlying funds will","page_number":173,"box":{"x":70,"y":113,"width":836,"height":11}},{"id":"780c3b7c-6806-452c-ae1c-831b39c9f5d6","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":173,"box":{"x":69,"y":128,"width":812,"height":11}},{"id":"e104961b-dd55-4c18-9e0a-e8bc4151e419","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":173,"box":{"x":69,"y":143,"width":805,"height":11}},{"id":"0f0ec413-426a-4ce3-8d6c-ac8ca17ff000","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":173,"box":{"x":68,"y":158,"width":829,"height":11}},{"id":"a03a7999-5d33-4cf2-ae9c-5282ab7dc394","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":173,"box":{"x":70,"y":173,"width":803,"height":11}},{"id":"d2a2cab5-bb1e-4025-bb2a-7386c3ff759b","block_type":"box","text":"Fund were to invest otherwise.","page_number":173,"box":{"x":70,"y":188,"width":216,"height":9}},{"id":"25f73c86-f9d3-4f7f-b259-a4f16fd874d4","block_type":"box","text":"A Fund may take certain positions through a wholly-owned (or majority-owned), foreign subsidiary (the","page_number":173,"box":{"x":101,"y":211,"width":721,"height":11}},{"id":"965569d7-e529-4385-86da-f69266bdc672","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":173,"box":{"x":70,"y":226,"width":787,"height":11}},{"id":"5b3a67db-5db3-49d5-a5c4-abcf5718edfc","block_type":"box","text":"income will be “subpart F income” for U.S. federal income tax purposes. If that is the case, the Fund will be required","page_number":173,"box":{"x":70,"y":241,"width":831,"height":11}},{"id":"c34d83f9-351d-43e1-874f-a23dbd10443e","block_type":"box","text":"to report all of the Subsidiary’s net income as ordinary income regardless of whether that income would be treated","page_number":173,"box":{"x":68,"y":256,"width":823,"height":12}},{"id":"34cb5fed-b3ed-4668-a7fb-1e5e381ec1d1","block_type":"box","text":"differently (for example, as capital gain) at the Subsidiary level and regardless of whether that income is distributed","page_number":173,"box":{"x":69,"y":271,"width":825,"height":12}},{"id":"a406e5bc-6858-4b93-b524-cd37efc291e1","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":173,"box":{"x":68,"y":286,"width":838,"height":12}},{"id":"19f531b4-dc59-4be1-8e56-52e1beae3a61","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":173,"box":{"x":68,"y":302,"width":830,"height":11}},{"id":"cd09eb38-5e11-41c4-a0c7-403ff306551c","block_type":"box","text":"expected that the Subsidiary will be subject to an entity-level federal tax.","page_number":173,"box":{"x":69,"y":317,"width":515,"height":11}},{"id":"0ca19f29-8d45-47e4-a7a9-bf220cbaa969","block_type":"box","text":"If a Fund purchases shares of an investment company (or similar investment entity) organized under foreign law,","page_number":173,"box":{"x":102,"y":339,"width":798,"height":12}},{"id":"5430954e-7757-4377-8fda-d307ed366f74","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":173,"box":{"x":68,"y":355,"width":835,"height":11}},{"id":"f5556d58-5058-43db-b762-17cd9811db40","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":173,"box":{"x":70,"y":370,"width":827,"height":11}},{"id":"cc8fd8a1-bcdc-4c57-9197-3e26597d3715","block_type":"box","text":"to tax underpayments) on tax liability treated as having been deferred with respect to certain distributions from such","page_number":173,"box":{"x":68,"y":385,"width":830,"height":11}},{"id":"ba148053-84d4-441e-9e44-0b411dab92f4","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":173,"box":{"x":69,"y":400,"width":802,"height":11}},{"id":"bc0fb076-622f-4dab-b399-298c5e94313f","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":173,"box":{"x":69,"y":415,"width":821,"height":11}},{"id":"9cd1b97e-cd00-4d8f-bec0-164449bccf2f","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":173,"box":{"x":70,"y":430,"width":797,"height":11}},{"id":"da4f9eda-652c-49a1-b114-f45da4a2ce39","block_type":"box","text":"made separately for each PFIC held and, once made, would be effective for all subsequent taxable years, unless","page_number":173,"box":{"x":69,"y":445,"width":801,"height":11}},{"id":"eccfdafe-3e42-42a4-8e20-bc773a85de22","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":173,"box":{"x":69,"y":460,"width":818,"height":12}},{"id":"b75e600d-977f-48d5-b829-2b3f5b5f73b1","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":173,"box":{"x":68,"y":475,"width":797,"height":12}},{"id":"5d0fc509-2da5-43b2-99da-e9ab6069f549","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":173,"box":{"x":69,"y":491,"width":824,"height":11}},{"id":"2e851db6-de10-4a81-9f14-a10b97b5b32d","block_type":"box","text":"to-market election, a Fund could avoid imposition of the interest charge with respect to excess distributions from","page_number":173,"box":{"x":68,"y":506,"width":804,"height":11}},{"id":"faade2ab-b89b-40ff-bfec-ba69e5ff73b8","block_type":"box","text":"PFICs, but in any particular year might be required to recognize income in excess of the distributions it received from","page_number":173,"box":{"x":69,"y":521,"width":831,"height":11}},{"id":"fe4402f6-bf0e-497b-972a-d6345047f8de","block_type":"box","text":"PFICs.","page_number":173,"box":{"x":69,"y":536,"width":42,"height":9}},{"id":"17b2eb3c-bd2e-48f7-8312-9c9dfc587130","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":173,"box":{"x":102,"y":559,"width":804,"height":11}},{"id":"cf565cec-5317-4979-8004-3b4a2396de1f","block_type":"box","text":"of the foregoing requirements, the Fund would be required to include in income each year a portion of the ordinary","page_number":173,"box":{"x":69,"y":574,"width":816,"height":11}},{"id":"6d43df6f-7911-4482-95c7-ea1b57ba7c88","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":173,"box":{"x":69,"y":589,"width":816,"height":11}},{"id":"bf5625de-c2e6-4759-beb5-239708db3ad0","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":173,"box":{"x":68,"y":604,"width":840,"height":11}},{"id":"1009c8b2-6c4f-4289-afec-b468c50d93b1","block_type":"box","text":"the Fund would be required to obtain certain annual information from the PFICs in which it invests, which may be","page_number":173,"box":{"x":68,"y":619,"width":804,"height":11}},{"id":"d0069f17-a302-4640-8592-01c2acefb0e5","block_type":"box","text":"difficult or impossible to obtain.","page_number":173,"box":{"x":69,"y":634,"width":225,"height":11}},{"id":"15959d97-c841-4d09-a3cc-c46f9161e463","block_type":"box","text":"In certain situations, a Fund may, for a taxable year, defer all or a portion of its net capital loss (or if there is no","page_number":173,"box":{"x":102,"y":657,"width":796,"height":11}},{"id":"658e0bd2-579d-49f9-aaa1-6ab03c9d9907","block_type":"box","text":"net capital loss, any net long-term or short-term capital loss) realized after October and its late-year ordinary loss","page_number":173,"box":{"x":69,"y":672,"width":806,"height":11}},{"id":"3c9bfc70-4cd0-4002-a4e1-65b740af9cc0","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":173,"box":{"x":69,"y":687,"width":778,"height":11}},{"id":"893cc371-85d4-485a-83f7-1e300ad1bde2","block_type":"box","text":"currency and PFIC gains plus the excess of post-December ordinary losses over post-December ordinary income) until","page_number":173,"box":{"x":69,"y":702,"width":838,"height":12}},{"id":"44abff5c-051a-497c-be1d-a2d584e5159e","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":173,"box":{"x":68,"y":717,"width":824,"height":12}},{"id":"353947d6-7854-4238-8d8c-790fbc818580","block_type":"box","text":"recognition of such realized losses. Such deferrals and other rules regarding gains and losses realized after October","page_number":173,"box":{"x":69,"y":732,"width":830,"height":12}},{"id":"c95c3c90-fb63-4e9e-92ad-5ed403860c61","block_type":"box","text":"(or December) may affect the tax character of shareholder distributions.","page_number":173,"box":{"x":69,"y":748,"width":511,"height":11}},{"id":"afbd1137-6627-4fd2-8b10-ccfd96a12d27","block_type":"box","text":"Municipal Funds","page_number":173,"box":{"x":102,"y":771,"width":115,"height":10}},{"id":"0a70d85d-3a02-473c-8aa1-2da045e6fa8b","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":173,"box":{"x":102,"y":793,"width":798,"height":11}},{"id":"0d2c8155-50a2-4234-9505-918a6a1148e7","block_type":"box","text":"Code. Under such section if, at the close of each quarter of a Fund’s taxable year, at least 50% of the value of the","page_number":173,"box":{"x":69,"y":808,"width":815,"height":11}},{"id":"4084bc5c-43f7-443c-891a-8cb1cae539c3","block_type":"box","text":"Fund’s total assets consists of obligations exempt from U.S. federal income tax (“tax-exempt obligations”) under","page_number":173,"box":{"x":70,"y":823,"width":803,"height":12}},{"id":"3a523d27-2158-4f11-a959-8c7457ccb5a9","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":173,"box":{"x":69,"y":838,"width":826,"height":12}},{"id":"51067721-e238-439a-891f-56fcff1d603e","block_type":"box","text":"qualified to pay exempt-interest dividends to holders of all outstanding classes of its shares (together the","page_number":173,"box":{"x":69,"y":853,"width":752,"height":12}},{"id":"ced4cde7-6f2c-418c-9d5b-d441b52279ac","block_type":"box","text":"“shareholders”). Exempt-interest dividends are dividends or any part thereof paid by a Fund that are attributable to","page_number":173,"box":{"x":70,"y":869,"width":817,"height":11}},{"id":"b5123748-67c9-484c-a485-5492935524ba","block_type":"box","text":"interest on tax-exempt obligations and reported by the Fund as exempt-interest dividends. A Fund will allocate","page_number":173,"box":{"x":70,"y":884,"width":780,"height":11}},{"id":"20bd7e75-5414-46b5-af93-9048dea700ce","block_type":"box","text":"interest from tax-exempt obligations (as well as ordinary income, capital gains and tax preference items discussed","page_number":173,"box":{"x":70,"y":899,"width":815,"height":11}},{"id":"fb87e33b-b2af-4d8f-83d8-22d82ed54f5b","block_type":"box","text":"II-135","page_number":173,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"908fc83a-fae0-454c-9d10-9ae2d8087d93","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":173,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"56eae5a8-b608-4ed3-93cd-5043ce12bbdc","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":174,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"45f65ada-d38d-4a42-905f-b24ab457d4a0","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":174,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"c60f2d7e-c5de-4d86-82fa-64d4d3c3f65f","block_type":"box","text":"to each class of shareholders during the taxable year, or such other method as the IRS may prescribe.","page_number":174,"box":{"x":68,"y":75,"width":730,"height":11}},{"id":"b9c819df-de2e-4641-b5b8-3666fe1b2543","block_type":"box","text":"Exempt-interest dividends will be excludable from a shareholder’s gross income for U.S. federal income tax","page_number":174,"box":{"x":102,"y":98,"width":763,"height":11}},{"id":"8d497e4d-86d9-41b2-84fa-6b9d16cb03d2","block_type":"box","text":"purposes. Exempt-interest dividends are included, however, in determining the portion, if any, of a person’s social","page_number":174,"box":{"x":70,"y":113,"width":809,"height":11}},{"id":"ec0cb3de-894e-4a89-bc71-482cfa22e077","block_type":"box","text":"security and railroad retirement benefits subject to U.S. federal income taxes. Interest on indebtedness incurred or","page_number":174,"box":{"x":69,"y":128,"width":821,"height":11}},{"id":"d738bcaa-8dfa-4ac7-bd98-0176ee903e5b","block_type":"box","text":"continued to purchase or carry shares of a regulated investment company paying exempt-interest dividends, such as","page_number":174,"box":{"x":69,"y":143,"width":831,"height":11}},{"id":"a316b426-55a6-4e1b-92a0-3a8a42942440","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":174,"box":{"x":68,"y":158,"width":800,"height":11}},{"id":"66fc1fe2-7833-4c26-bc22-0dd0ef07685e","block_type":"box","text":"exempt-interest dividends. Shareholders are advised to consult their tax advisors with respect to whether exempt","page_number":174,"box":{"x":69,"y":173,"width":810,"height":11}},{"id":"82b53787-11a7-41db-a13a-4dcabac367a5","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":174,"box":{"x":70,"y":188,"width":836,"height":11}},{"id":"bbc9a760-66ef-4062-a581-e899efe87757","block_type":"box","text":"user” or “related person” under Code Section 147(a) with respect to property financed with the proceeds of an issue","page_number":174,"box":{"x":69,"y":203,"width":835,"height":12}},{"id":"d2a0ff23-4ce5-4adb-9acc-ef71237a8d40","block_type":"box","text":"of PABs, if any, held by a Fund.","page_number":174,"box":{"x":69,"y":218,"width":217,"height":12}},{"id":"16c385b7-7a63-422e-ad68-4c55c88cf80f","block_type":"box","text":"Substitute payments received by a Fund representing interest paid on tax-exempt obligations loaned out by the","page_number":174,"box":{"x":102,"y":241,"width":788,"height":11}},{"id":"d05360e6-b00d-4856-ad6d-425d7065d1a1","block_type":"box","text":"Fund will not be considered exempt interest, and distributions by the Fund of such substitute payments will not","page_number":174,"box":{"x":70,"y":256,"width":790,"height":11}},{"id":"f8753ca3-a422-4ad9-a374-659cbb8b702c","block_type":"box","text":"constitute exempt-interest dividends.","page_number":174,"box":{"x":69,"y":272,"width":261,"height":10}},{"id":"1596c0bc-681a-4ca7-ab28-759230e75454","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":174,"box":{"x":102,"y":294,"width":765,"height":11}},{"id":"dc9f4e2a-b963-4cc9-bcc0-803a0de6cf34","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":174,"box":{"x":69,"y":309,"width":819,"height":11}},{"id":"e311cc40-c2c9-4ac8-8eae-349b64e52cc9","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":174,"box":{"x":68,"y":324,"width":813,"height":12}},{"id":"0edea362-fc3f-4a71-a275-2a4292a67c09","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":174,"box":{"x":70,"y":339,"width":809,"height":12}},{"id":"fa779d28-dd84-49ef-9382-c057aac1e04e","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":174,"box":{"x":69,"y":355,"width":829,"height":11}},{"id":"6f9d9f35-0a52-4b48-bdc7-b5a397be3c75","block_type":"box","text":"any capital gain dividends received by the shareholder.","page_number":174,"box":{"x":69,"y":370,"width":388,"height":11}},{"id":"40ff06ff-a15a-4846-92f0-af22cb94db89","block_type":"box","text":"All or a portion of a Fund’s gains from the sale or redemption of tax-exempt obligations purchased at a market","page_number":174,"box":{"x":101,"y":392,"width":787,"height":12}},{"id":"a24a7455-1e00-4637-af70-ab9c0b3bfb26","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":174,"box":{"x":69,"y":407,"width":817,"height":12}},{"id":"66cde843-ed0f-466a-9205-572a19792d4d","block_type":"box","text":"income dividends received by shareholders.","page_number":174,"box":{"x":70,"y":423,"width":309,"height":11}},{"id":"8e65d01c-97d1-4093-9098-a5908ad29570","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":174,"box":{"x":101,"y":446,"width":766,"height":11}},{"id":"2635ef7a-00b2-4bf3-bd2f-2adb687112b4","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":174,"box":{"x":69,"y":460,"width":808,"height":12}},{"id":"486dbc73-400a-4eac-85bd-8a1e657513cf","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":174,"box":{"x":70,"y":476,"width":815,"height":11}},{"id":"e15bfeb8-f12a-4079-9921-5ad2c177de3f","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":174,"box":{"x":70,"y":491,"width":815,"height":11}},{"id":"8144326e-d912-4528-955a-f142c875d1c6","block_type":"box","text":"the accrued market discount.","page_number":174,"box":{"x":68,"y":506,"width":208,"height":9}},{"id":"0d4352ca-9b58-410d-bac9-78caf3efa6ea","block_type":"box","text":"The Code subjects interest received on certain otherwise tax-exempt securities to a federal alternative minimum","page_number":174,"box":{"x":101,"y":528,"width":801,"height":12}},{"id":"5ab15dd8-0241-40bd-8030-3724dd3adb7e","block_type":"box","text":"tax. The alternative minimum tax applies to interest received on certain “PABs” issued after August 7, 1986. PABs","page_number":174,"box":{"x":68,"y":543,"width":818,"height":12}},{"id":"f9a0070b-c414-4c90-ab45-074c9be496a4","block_type":"box","text":"are bonds that, although tax-exempt, are used for purposes other than those generally performed by governmental","page_number":174,"box":{"x":69,"y":559,"width":816,"height":11}},{"id":"cdfd92f9-0119-4a77-bf6e-5ff23fd54c0f","block_type":"box","text":"units and that benefit non-governmental entities (","page_number":174,"box":{"x":69,"y":574,"width":351,"height":11}},{"id":"e6e33fb2-5400-430f-a7a2-9b66fa85b65d","block_type":"box","text":"e.g.","page_number":174,"box":{"x":422,"y":575,"width":24,"height":10}},{"id":"f43a9cee-929d-44a1-b94b-e6e8989cbdd1","block_type":"box","text":", bonds used for industrial development or housing purposes).","page_number":174,"box":{"x":449,"y":574,"width":441,"height":11}},{"id":"c765e8d3-29ab-4a3f-9e49-569711e61a3f","block_type":"box","text":"Income received on such bonds is classified as an item of “tax preference,” which could subject certain investors in","page_number":174,"box":{"x":70,"y":589,"width":827,"height":11}},{"id":"6b70dcd2-4b83-47b9-97c4-6bfa68b47591","block_type":"box","text":"such bonds, including shareholders of a Fund, to a federal alternative minimum tax. A Fund will purchase such","page_number":174,"box":{"x":69,"y":604,"width":786,"height":11}},{"id":"78ce4529-0c4f-4730-a07d-538c67bae887","block_type":"box","text":"“PABs” and will report to shareholders after the close of the calendar year the portion of the Fund’s dividends","page_number":174,"box":{"x":70,"y":619,"width":782,"height":11}},{"id":"0bd49b78-2264-4a25-afb2-ecd468a9eab2","block_type":"box","text":"declared during the year that constitute an item of tax preference for alternative minimum tax purposes.","page_number":174,"box":{"x":69,"y":634,"width":740,"height":12}},{"id":"f6584f27-2f94-4d9a-817f-3f24fc39b6b0","block_type":"box","text":"Each Municipal Fund may engage in interest rate swap transactions. The U.S. federal income tax rules governing","page_number":174,"box":{"x":102,"y":657,"width":802,"height":11}},{"id":"9f220ab0-66c1-49f9-841f-530e41df345d","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":174,"box":{"x":68,"y":672,"width":812,"height":11}},{"id":"14b0b4f3-3d44-4915-a5db-ac735e002ca1","block_type":"box","text":"such arrangements as ordinary income and to amortize payments made under certain circumstances. Because","page_number":174,"box":{"x":69,"y":687,"width":794,"height":11}},{"id":"9c6f8e14-eea0-4c26-b88b-45168953004c","block_type":"box","text":"payments received by a Fund in connection with swap transactions will be taxable rather than tax-exempt and","page_number":174,"box":{"x":70,"y":703,"width":776,"height":10}},{"id":"5b02aef5-6e6f-49aa-b830-eea5aa43468f","block_type":"box","text":"because swap payments made by a Fund will offset both taxable and tax-exempt gross income proportionately, they","page_number":174,"box":{"x":69,"y":717,"width":826,"height":12}},{"id":"b86c23bf-c602-4add-87b2-edef77b5daa6","block_type":"box","text":"may result in increased taxable distributions to shareholders.","page_number":174,"box":{"x":69,"y":733,"width":436,"height":11}},{"id":"a1e49043-e1d5-4467-82c2-ec3be390ce28","block_type":"box","text":"Please see Part I of your Fund’s SAI for certain state tax information relevant to an investment in BlackRock","page_number":174,"box":{"x":102,"y":755,"width":771,"height":11}},{"id":"a76e3023-ae69-4ca0-8417-65cb0e57aeb2","block_type":"box","text":"California Municipal Opportunities Fund, BlackRock New Jersey Municipal Bond Fund, BlackRock New York Municipal","page_number":174,"box":{"x":69,"y":770,"width":828,"height":11}},{"id":"fcce9963-a9f6-4f5e-bf17-6c792236b717","block_type":"box","text":"Opportunities Fund and BlackRock Pennsylvania Municipal Bond Fund, as well as information on economic conditions","page_number":174,"box":{"x":69,"y":785,"width":836,"height":12}},{"id":"41e4581f-86c3-4d72-9300-a0e0192dc560","block_type":"box","text":"within each applicable state.","page_number":174,"box":{"x":68,"y":801,"width":203,"height":11}},{"id":"608bee87-fe27-479b-8d25-9de6df241acf","block_type":"box","text":"In the case of a Feeder Fund, such Fund is entitled to look to the underlying assets of the Master Portfolio in","page_number":174,"box":{"x":102,"y":823,"width":774,"height":12}},{"id":"e49068b9-efa2-441e-b048-cd793ad99988","block_type":"box","text":"which it has invested for purposes of satisfying various qualification requirements of the Code applicable to regulated","page_number":174,"box":{"x":68,"y":838,"width":837,"height":12}},{"id":"aaf068a0-863d-4755-aed0-1ac407bb2fd6","block_type":"box","text":"investment companies. Each Master Portfolio is classified either as a partnership or a separate disregarded entity","page_number":174,"box":{"x":70,"y":853,"width":816,"height":12}},{"id":"ee79d0b9-fbb4-4014-b633-df0eef92cf38","block_type":"box","text":"(depending on the particular Master Portfolio) for U.S. federal income tax purposes. If applicable tax provisions were","page_number":174,"box":{"x":69,"y":869,"width":830,"height":11}},{"id":"40f4721f-a37d-42ea-bc65-99f9c04677f3","block_type":"box","text":"to change the classification of a Master Portfolio, then the Board of Directors of a Feeder Fund would determine, in","page_number":174,"box":{"x":68,"y":884,"width":822,"height":11}},{"id":"48378e79-456c-4647-983d-c38e61e5cfe9","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":174,"box":{"x":70,"y":899,"width":783,"height":11}},{"id":"9544a081-6324-48fa-bec9-5d8ccc3fa4d8","block_type":"box","text":"II-136","page_number":174,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"8bca9f07-d4f7-4b60-9618-a6c29a304925","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":174,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"99608af5-ff15-4559-a9dd-c2e9491cc3e5","block_type":"box","text":"withdraw the Feeder Fund’s investments from the Master Portfolio and to retain an investment manager to manage","page_number":175,"box":{"x":68,"y":45,"width":822,"height":11}},{"id":"6c00682c-ddd2-46be-aea8-8a10c9ed9231","block_type":"box","text":"the Feeder Fund’s assets in accordance with the investment policies applicable to the Feeder Fund.","page_number":175,"box":{"x":68,"y":60,"width":710,"height":11}},{"id":"eb746660-2368-49ed-8e26-ea8cd42ee146","block_type":"box","text":"Ordinary income and capital gain dividends may also be subject to state and local taxes. Certain states exempt","page_number":175,"box":{"x":102,"y":83,"width":796,"height":11}},{"id":"086de3e2-b71d-4d91-9fd3-256c0c4822b2","block_type":"box","text":"from state income taxation dividends paid by regulated investment companies that are derived from interest on U.S.","page_number":175,"box":{"x":68,"y":98,"width":828,"height":11}},{"id":"db78d2d0-fc72-45fc-b405-609fa2e1ce1c","block_type":"box","text":"government obligations. State law varies as to whether dividend income attributable to U.S. government obligations is","page_number":175,"box":{"x":68,"y":113,"width":841,"height":11}},{"id":"fd80abe7-69fc-4087-85a3-3a3ad95cf6a4","block_type":"box","text":"exempt from state income tax.","page_number":175,"box":{"x":69,"y":128,"width":216,"height":11}},{"id":"bee20900-4195-4a9e-b7ce-19455c83db7f","block_type":"box","text":"Shareholders of each Fund are urged to consult their tax advisers regarding specific questions as to federal,","page_number":175,"box":{"x":102,"y":150,"width":771,"height":12}},{"id":"709207e4-e3cb-4f7f-8a92-6e6fabf1c671","block_type":"box","text":"foreign, state or local taxes with respect to their Fund. Foreign investors should consider applicable foreign taxes in","page_number":175,"box":{"x":68,"y":166,"width":823,"height":11}},{"id":"91d2d79e-2c61-4a85-bec1-4225e2bb287e","block_type":"box","text":"their evaluation of an investment in a Fund.","page_number":175,"box":{"x":68,"y":181,"width":309,"height":9}},{"id":"a5a3cefa-3f23-4654-9cc3-e14be497efde","block_type":"box","text":"The foregoing general discussion of U.S. federal income tax consequences is based on the Code and the","page_number":175,"box":{"x":101,"y":203,"width":749,"height":12}},{"id":"5508ca03-63de-4ad8-9e98-a5d50c1bd334","block_type":"box","text":"regulations issued thereunder as in effect on the date of this SAI. Future legislative or administrative changes or","page_number":175,"box":{"x":69,"y":218,"width":803,"height":12}},{"id":"e6a1ea11-f446-418b-b6a5-1ca5dbe1955f","block_type":"box","text":"court decisions may significantly change the conclusions expressed in this discussion, and any such changes or","page_number":175,"box":{"x":69,"y":234,"width":801,"height":11}},{"id":"22ea139b-1cb7-4f92-b093-771cef1bf609","block_type":"box","text":"decisions may have a retroactive effect.","page_number":175,"box":{"x":69,"y":249,"width":283,"height":11}},{"id":"d9d2b357-eafc-42f0-b692-db5f11f0170a","block_type":"box","text":"PERFORMANCE DATA","page_number":175,"box":{"x":403,"y":278,"width":173,"height":10}},{"id":"a278eca6-ac35-4af9-a06a-d153558cc383","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":175,"box":{"x":102,"y":301,"width":738,"height":11}},{"id":"a504220f-8b51-4547-8045-f3b1351d323f","block_type":"box","text":"applicable, yield and tax-equivalent yield in advertisements or information furnished to present or prospective","page_number":175,"box":{"x":69,"y":316,"width":779,"height":11}},{"id":"f3437e47-c00f-443f-84b9-e120d6a7a208","block_type":"box","text":"shareholders. Total return, yield and tax-equivalent yield each is based on a Fund’s historical performance and is not","page_number":175,"box":{"x":69,"y":331,"width":833,"height":11}},{"id":"e4117a0a-5d54-49a4-b054-c898ed8b4619","block_type":"box","text":"intended to indicate future performance. Average annual total return is determined separately for each class of","page_number":175,"box":{"x":70,"y":346,"width":792,"height":12}},{"id":"2ecabc9f-4168-47b5-b3b8-7759c2651893","block_type":"box","text":"shares in accordance with a formula specified by the Commission.","page_number":175,"box":{"x":69,"y":361,"width":473,"height":12}},{"id":"015250e1-403a-4739-94ab-df0d31c05a13","block_type":"box","text":"Quotations of average annual total return, before tax, for the specified periods are computed by finding the","page_number":175,"box":{"x":102,"y":384,"width":761,"height":11}},{"id":"c4788a49-48f6-4ec7-ade8-2cdbb58f0980","block_type":"box","text":"average annual compounded rates of return (based on net investment income and any realized and unrealized capital","page_number":175,"box":{"x":69,"y":399,"width":836,"height":12}},{"id":"45c8c7f9-26d6-4bb0-ade0-96e14e06b326","block_type":"box","text":"gains or losses on portfolio investments over such periods) that would equate the initial amount invested to the","page_number":175,"box":{"x":68,"y":414,"width":798,"height":12}},{"id":"d413b131-d01c-4886-af0b-0528a14081ca","block_type":"box","text":"redeemable value of such investment at the end of each period. Average annual total return before taxes is","page_number":175,"box":{"x":69,"y":429,"width":765,"height":12}},{"id":"cbe17b29-c61d-47e3-8e7a-ebf167eb2785","block_type":"box","text":"computed assuming all dividends are reinvested and taking into account all applicable recurring and nonrecurring","page_number":175,"box":{"x":69,"y":445,"width":808,"height":11}},{"id":"d817bea9-5e03-4bde-9b9b-8bdf0d44f53d","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":175,"box":{"x":69,"y":460,"width":813,"height":11}},{"id":"8a4a036c-8a62-4b8a-b8b1-5c62f8a3a212","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":175,"box":{"x":69,"y":475,"width":839,"height":11}},{"id":"6f3eb151-f76b-417f-abd2-0cbe1351183f","block_type":"box","text":"but does not take into account taxes payable on dividends or on redemption.","page_number":175,"box":{"x":69,"y":490,"width":546,"height":11}},{"id":"badb1cb5-f232-4061-bd1b-dc106bb0aa02","block_type":"box","text":"Quotations of average annual total return, after taxes, on dividends for the specified periods are computed by","page_number":175,"box":{"x":102,"y":513,"width":781,"height":11}},{"id":"f19695e6-5010-4bfa-b640-4808c0341761","block_type":"box","text":"finding the average annual compounded rates of return that would equate the initial amount invested to the ending","page_number":175,"box":{"x":68,"y":528,"width":819,"height":11}},{"id":"6d2f8ee9-26e1-4894-b3e4-bd997a24dcac","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":175,"box":{"x":68,"y":543,"width":810,"height":11}},{"id":"5d8737e2-3d01-4b52-bd7c-54cac07d9080","block_type":"box","text":"period. Average annual total return after taxes on dividends is computed assuming all dividends, less the taxes due","page_number":175,"box":{"x":70,"y":558,"width":823,"height":11}},{"id":"d82712d6-586b-4a24-ba78-e40ab86e3824","block_type":"box","text":"on such dividends, are reinvested and taking into account all applicable recurring and nonrecurring expenses,","page_number":175,"box":{"x":69,"y":573,"width":780,"height":11}},{"id":"ffc24aca-301b-4528-8b99-e4314a1a70ca","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":175,"box":{"x":70,"y":588,"width":825,"height":12}},{"id":"69eaf5a9-50eb-43fb-a2c4-ebfcc131505f","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":175,"box":{"x":69,"y":603,"width":817,"height":11}},{"id":"69f76627-ec46-4310-a4ce-4c2dca651e96","block_type":"box","text":"due on dividends are calculated by applying to each dividend the highest applicable marginal U.S. federal individual","page_number":175,"box":{"x":69,"y":618,"width":820,"height":12}},{"id":"b35f5932-ef74-4898-81ed-f193b32946bf","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":175,"box":{"x":70,"y":634,"width":833,"height":11}},{"id":"32470bed-f497-41fd-a3f5-f93e66815137","block_type":"box","text":"(including eligibility for the maximum 20% tax rate applicable to qualified dividend income) of each dividend. The","page_number":175,"box":{"x":69,"y":649,"width":797,"height":11}},{"id":"632da5c7-3149-4609-8c30-48d9c33b49f0","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":175,"box":{"x":68,"y":664,"width":824,"height":11}},{"id":"5dab28c8-6e95-453c-9b1d-b3597420b46e","block_type":"box","text":"may be adjusted to reflect subsequent recharacterizations of distributions. The applicable tax rates may vary over the","page_number":175,"box":{"x":69,"y":679,"width":837,"height":11}},{"id":"894448f9-e5b8-406f-b499-a9824f514ef9","block_type":"box","text":"measurement period. The effects of state and local taxes are not reflected. Applicable tax credits, such as foreign","page_number":175,"box":{"x":69,"y":694,"width":814,"height":11}},{"id":"9c72877e-1f79-4366-a10a-923497f53d9a","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":175,"box":{"x":69,"y":709,"width":830,"height":11}},{"id":"b9659d92-b12b-449a-8468-657ed2341c81","block_type":"box","text":"redemption at the end of the applicable periods with no tax consequences associated with such redemption.","page_number":175,"box":{"x":69,"y":724,"width":774,"height":11}},{"id":"0907342d-062d-458f-be77-e241cc6971df","block_type":"box","text":"Quotations of average annual total return, after taxes, on both dividends and redemption for the specified","page_number":175,"box":{"x":102,"y":747,"width":752,"height":11}},{"id":"de171216-6612-4037-8df9-ad2e027aabf4","block_type":"box","text":"periods are computed by finding the average annual compounded rates of return that would equate the initial amount","page_number":175,"box":{"x":70,"y":762,"width":835,"height":11}},{"id":"b910416b-35ea-49ad-868e-a62daf37bcb0","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":175,"box":{"x":70,"y":777,"width":820,"height":12}},{"id":"076784e7-be75-43ce-9ee4-29f62cc5bc45","block_type":"box","text":"received during such period as well as on complete redemption. Average annual total return after taxes on","page_number":175,"box":{"x":69,"y":792,"width":756,"height":12}},{"id":"574cdb87-af7a-422d-be59-6cad27ff5a28","block_type":"box","text":"distributions and redemption is computed assuming all dividends, less the taxes due on such dividends, are","page_number":175,"box":{"x":69,"y":808,"width":772,"height":11}},{"id":"fbf9a560-5956-45dd-b1e2-6e3bab6a499c","block_type":"box","text":"reinvested and taking into account all applicable recurring and nonrecurring expenses, including the maximum sales","page_number":175,"box":{"x":69,"y":823,"width":827,"height":11}},{"id":"86eb5d48-e511-43a1-add2-4d66024bf2d4","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":175,"box":{"x":69,"y":838,"width":825,"height":11}},{"id":"5ae9d47d-4a31-460b-8fe2-ce8ebef33ee9","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":175,"box":{"x":70,"y":853,"width":812,"height":11}},{"id":"3d4c2b8f-e92b-4ced-90e2-42491e11abd2","block_type":"box","text":"complete redemption and payment of taxes due on such redemption. The ending value is determined assuming","page_number":175,"box":{"x":69,"y":868,"width":795,"height":11}},{"id":"2df833a1-15e0-4c8c-8cfc-190288b395d9","block_type":"box","text":"complete redemption at the end of the applicable periods, subtracting capital gains taxes resulting from the","page_number":175,"box":{"x":69,"y":883,"width":768,"height":11}},{"id":"3930d409-9758-41ac-8e38-1f7f1620bd68","block_type":"box","text":"redemption and adding the presumed tax benefit from capital losses resulting from redemption. The taxes due on","page_number":175,"box":{"x":69,"y":898,"width":810,"height":11}},{"id":"2dc0edfd-b117-42ae-ad6a-56624598d6ff","block_type":"box","text":"II-137","page_number":175,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"bd65f54a-0fca-4642-b187-79f5aba5d0d8","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":175,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d326c858-79cc-4c2e-807a-3eab7feebb95","block_type":"box","text":"dividends and on the deemed redemption are calculated by applying the highest applicable marginal U.S. federal","page_number":176,"box":{"x":69,"y":45,"width":802,"height":11}},{"id":"82553947-17dd-4380-8392-fe3482792917","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":176,"box":{"x":70,"y":60,"width":825,"height":11}},{"id":"bec61d4d-30e6-4cdb-96b6-d216551ae7fa","block_type":"box","text":"the tax character (including eligibility for the maximum 20% tax rate applicable to qualified dividend income) of each","page_number":176,"box":{"x":68,"y":75,"width":823,"height":11}},{"id":"ec46473d-6e70-4766-9518-4ed2d8e1c1a9","block_type":"box","text":"component of each dividend and/or the redemption payment. The applicable tax rates may vary over the","page_number":176,"box":{"x":69,"y":90,"width":743,"height":11}},{"id":"c91bf497-d975-4c4b-8ee1-23c2c928dcc0","block_type":"box","text":"measurement period. The effects of state and local taxes are not reflected. Applicable tax credits, such as foreign","page_number":176,"box":{"x":69,"y":105,"width":814,"height":11}},{"id":"ed1a8fa8-8c2c-45a8-9768-b08d019ce995","block_type":"box","text":"tax credits, are taken into account according to federal law.","page_number":176,"box":{"x":68,"y":120,"width":422,"height":12}},{"id":"a329d3e5-5342-4e11-b5bb-32e3834a9231","block_type":"box","text":"A Fund also may quote annual, average annual and annualized total return and aggregate total return","page_number":176,"box":{"x":101,"y":143,"width":720,"height":11}},{"id":"aa589704-0ef1-4974-8dae-c08805fce773","block_type":"box","text":"performance data, both as a percentage and as a dollar amount based on a hypothetical investment of $1,000 or","page_number":176,"box":{"x":70,"y":157,"width":813,"height":12}},{"id":"f177abca-4d67-4ac1-aebf-d2d58730e509","block_type":"box","text":"some other amount, for various periods other than those noted in Part I of each Fund’s SAI. Such data will be","page_number":176,"box":{"x":69,"y":173,"width":781,"height":11}},{"id":"ab9d5336-58b8-46dd-addc-4748cf066b36","block_type":"box","text":"computed as described above, except that (1) as required by the periods of the quotations, actual annual, annualized","page_number":176,"box":{"x":69,"y":188,"width":837,"height":11}},{"id":"cc8c2cc7-a334-41ad-9f14-e3e465d20cd6","block_type":"box","text":"or aggregate data, rather than average annual data, may be quoted and (2) the maximum applicable sales charges","page_number":176,"box":{"x":69,"y":203,"width":817,"height":12}},{"id":"c6e11e3a-b9ff-4e7f-b535-4b9bfcaa79f9","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":176,"box":{"x":68,"y":218,"width":815,"height":11}},{"id":"a5ce918f-59e5-457e-919d-85028592dace","block_type":"box","text":"performance data calculations of including or excluding the maximum applicable sales charges, actual annual or","page_number":176,"box":{"x":70,"y":234,"width":801,"height":11}},{"id":"4308a8db-c41c-42a8-a2b5-c3cb3d0a2a81","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":176,"box":{"x":69,"y":249,"width":819,"height":11}},{"id":"038e063f-2fa1-46da-82c5-5998cd344479","block_type":"box","text":"return reflect compounding of return; aggregate total return data generally will be higher than average annual total","page_number":176,"box":{"x":69,"y":264,"width":811,"height":11}},{"id":"1cd799b8-c023-4f2f-a737-1e600ba1694e","block_type":"box","text":"return data since the aggregate rates of return reflect compounding over a longer period of time.","page_number":176,"box":{"x":69,"y":279,"width":686,"height":11}},{"id":"62c47e9d-4406-4a49-b85e-068f08bcdcd4","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":176,"box":{"x":101,"y":302,"width":796,"height":11}},{"id":"cce6cbe9-1d5b-4966-962a-91439cdd82b3","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":176,"box":{"x":69,"y":317,"width":821,"height":11}},{"id":"7cff5f34-2f81-4cc7-931a-17c5bad1993d","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":176,"box":{"x":68,"y":332,"width":817,"height":11}},{"id":"3dd35843-cfc9-4645-801a-63af7279053d","block_type":"box","text":"Tax equivalent yield quotations will be computed by dividing (a) the part of a Fund’s yield that is tax-exempt by (b) one","page_number":176,"box":{"x":68,"y":347,"width":837,"height":11}},{"id":"a9b3107b-4299-41c0-b6fd-1d05a15d260e","block_type":"box","text":"minus a stated tax rate and adding the result to that part, if any, of the Fund’s yield that is not tax-exempt.","page_number":176,"box":{"x":69,"y":362,"width":759,"height":11}},{"id":"d6109225-2009-49d2-ba71-64ed1bbf70ed","block_type":"box","text":"A Fund’s total return will vary depending on market conditions, the securities comprising a Fund’s portfolio, a","page_number":176,"box":{"x":101,"y":385,"width":779,"height":11}},{"id":"a0af1837-3e39-4921-8769-44dcb28102ea","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":176,"box":{"x":70,"y":400,"width":819,"height":11}},{"id":"72a3c596-e582-4c05-a0f2-2f19063cfea4","block_type":"box","text":"The value of an investment in a Fund will fluctuate and an investor’s shares, when redeemed, may be worth more or","page_number":176,"box":{"x":68,"y":415,"width":830,"height":11}},{"id":"684b7e64-faa2-4c1f-a273-924cc33b44f7","block_type":"box","text":"less than their original cost.","page_number":176,"box":{"x":70,"y":430,"width":196,"height":11}},{"id":"d1e15d54-b93e-4a30-b25d-5118eceeac66","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":176,"box":{"x":102,"y":453,"width":782,"height":11}},{"id":"d4bba979-7589-44d8-870e-ebf664dbc628","block_type":"box","text":"the case of CDSC shares applicable to certain investors, as described under “Purchase of Shares” and “Redemption","page_number":176,"box":{"x":68,"y":468,"width":836,"height":11}},{"id":"24a88c87-1667-4d13-9314-2aad54cef23a","block_type":"box","text":"of Shares,” respectively, the total return data quoted by a Fund in advertisements directed to such investors may","page_number":176,"box":{"x":69,"y":483,"width":807,"height":11}},{"id":"5bb9bc71-479f-4b60-b853-b7a45e641562","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":176,"box":{"x":68,"y":498,"width":820,"height":11}},{"id":"b957748f-0151-4ae1-b2d5-10e146341f13","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":176,"box":{"x":68,"y":513,"width":824,"height":12}},{"id":"0814f416-3905-4714-b46c-5eed437ad229","block_type":"box","text":"lower amount of expenses is deducted.","page_number":176,"box":{"x":70,"y":528,"width":278,"height":11}},{"id":"911609c8-7a2b-4889-a94f-d67ecaea4442","block_type":"box","text":"On occasion, a Fund may compare its performance to, among other things, the Fund’s benchmark index","page_number":176,"box":{"x":102,"y":551,"width":741,"height":11}},{"id":"5009ff2e-9c2c-4088-88d5-1e8091a91b8d","block_type":"box","text":"indicated in the Prospectus, the Value Line Composite Index, the Dow Jones Industrial Average, or to other published","page_number":176,"box":{"x":70,"y":566,"width":830,"height":11}},{"id":"b76c3f91-304c-4aa0-bbd2-16972af1ca8c","block_type":"box","text":"indices, or to performance data published by Lipper Inc., Morningstar, Inc. (“Morningstar”),","page_number":176,"box":{"x":70,"y":581,"width":646,"height":12}},{"id":"bb81582c-af2a-40e6-b8a5-28307674b159","block_type":"box","text":"Money Magazine, U.S.","page_number":176,"box":{"x":724,"y":581,"width":156,"height":12}},{"id":"00252120-e5d2-43c3-a936-986dd37b66d9","block_type":"box","text":"News & World Repor t, BusinessWeek, Forbes Magazine, For tune Magazine","page_number":176,"box":{"x":70,"y":597,"width":533,"height":11}},{"id":"23116ed6-e757-4fd7-be4c-f96fa21b0df0","block_type":"box","text":"or other industry publications. When","page_number":176,"box":{"x":608,"y":597,"width":257,"height":11}},{"id":"f829b173-a36f-4061-a969-c124a233f5b1","block_type":"box","text":"comparing its performance to a market index, a Fund may refer to various statistical measures derived from the","page_number":176,"box":{"x":69,"y":612,"width":797,"height":11}},{"id":"53b1908a-7783-42f3-b8e6-bce5096799f1","block_type":"box","text":"historical performance of a Fund and the index, such as standard deviation and beta. As with other performance","page_number":176,"box":{"x":69,"y":627,"width":803,"height":11}},{"id":"0f2933db-28a8-4d3a-8ff9-e26daffdce55","block_type":"box","text":"data, performance comparisons should not be considered indicative of a Fund’s relative performance for any future","page_number":176,"box":{"x":69,"y":642,"width":824,"height":11}},{"id":"5c876861-ce47-4012-8991-fe3c88a91628","block_type":"box","text":"period. In addition, from time to time a Fund may include the Fund’s Morningstar risk-adjusted performance ratings","page_number":176,"box":{"x":70,"y":657,"width":818,"height":11}},{"id":"e2624213-68f0-4eb3-823e-d24cadd1e2d0","block_type":"box","text":"assigned by Morningstar in advertising or supplemental sales literature. From time to time a Fund may quote in","page_number":176,"box":{"x":69,"y":672,"width":793,"height":11}},{"id":"9aa68965-7668-424b-944d-e69d8846731f","block_type":"box","text":"advertisements or other materials other applicable measures of Fund performance and may also make reference to","page_number":176,"box":{"x":69,"y":687,"width":826,"height":11}},{"id":"47759993-c83e-4ad0-8990-6fdaef4971b5","block_type":"box","text":"awards that may be given to the Manager. Certain Funds may also compare their performance to composite indices","page_number":176,"box":{"x":69,"y":702,"width":825,"height":12}},{"id":"0850bdf3-4451-4d86-a709-ed2ef257393f","block_type":"box","text":"developed by Fund management.","page_number":176,"box":{"x":69,"y":718,"width":233,"height":11}},{"id":"5f7e01b0-cc5d-4a48-bbef-0dd8766bc188","block_type":"box","text":"A Fund may provide information designed to help investors understand how the Fund is seeking to achieve its","page_number":176,"box":{"x":101,"y":740,"width":780,"height":11}},{"id":"b96ec36b-9e90-4678-b57f-c4aaaea975e6","block_type":"box","text":"investment objectives. This may include information about past, current or possible economic, market, political or","page_number":176,"box":{"x":70,"y":755,"width":810,"height":11}},{"id":"bf6fe5ac-3cac-4adc-bed3-23a17dfc2fce","block_type":"box","text":"other conditions, descriptive information or general principles of investing such as asset allocation, diversification","page_number":176,"box":{"x":69,"y":770,"width":810,"height":12}},{"id":"7273075c-e943-465d-89b3-a43bb50c07e0","block_type":"box","text":"and risk tolerance, discussion of a Fund’s portfolio composition, investment philosophy, strategy or investment","page_number":176,"box":{"x":69,"y":785,"width":792,"height":12}},{"id":"0ee913c9-0422-401a-a45a-0c7466dad51d","block_type":"box","text":"techniques, comparisons of the Fund’s performance or portfolio composition to that of other funds or types of","page_number":176,"box":{"x":68,"y":801,"width":788,"height":11}},{"id":"3860799d-e3c3-452a-9223-2f472139ef08","block_type":"box","text":"investments, indices relevant to the comparison being made, or to a hypothetical or model portfolio. A Fund may also","page_number":176,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"3c1ae83a-dfe3-4940-b5fb-872492b1cf9f","block_type":"box","text":"quote various measures of volatility and benchmark correlation in advertising and other materials, and may compare","page_number":176,"box":{"x":69,"y":831,"width":830,"height":11}},{"id":"109eab0f-8998-4eb8-81fc-cf8c3c84dbe5","block_type":"box","text":"these measures to those of other funds or types of investments.","page_number":176,"box":{"x":68,"y":846,"width":461,"height":11}},{"id":"29acd5af-4d33-4ca5-956c-a3c6eaa9e4d5","block_type":"box","text":"II-138","page_number":176,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"f47ca638-9dcc-4351-aabd-718faad5df67","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":176,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"94e6e3a9-a8d3-4062-b712-3c0673fe9fcb","block_type":"box","text":"PROXY VOTING POLICIES AND PROCEDURES","page_number":177,"box":{"x":308,"y":45,"width":362,"height":10}},{"id":"fee935ed-acaf-4811-b7d2-5e6520d99391","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":177,"box":{"x":101,"y":68,"width":802,"height":11}},{"id":"b4489461-f8f9-49b3-bb3b-501565d5ac94","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":177,"box":{"x":70,"y":83,"width":809,"height":11}},{"id":"d62dd820-7993-4080-ad38-b0665f17782e","block_type":"box","text":"Policy”), with respect to certain Funds, and (ii) the Index Equity Fund Proxy Voting Policy, with respect to certain other","page_number":177,"box":{"x":69,"y":98,"width":833,"height":11}},{"id":"ae22d0ba-9477-4495-818f-d3cd85c386ab","block_type":"box","text":"Funds, as applicable. Please refer to Part I of this SAI, which discloses the policy applicable to each Fund.","page_number":177,"box":{"x":70,"y":113,"width":755,"height":11}},{"id":"52b2c6b0-0f62-4cf1-a485-dbd5be9be5d1","block_type":"box","text":"With respect to Funds covered by the Active Fund Proxy Voting Policy, the Manager has adopted the BlackRock","page_number":177,"box":{"x":101,"y":136,"width":785,"height":11}},{"id":"7ca91a73-506b-442d-b1d2-613ef3e33dcc","block_type":"box","text":"Active Investment Stewardship—Global Engagement and Voting Guidelines (the “BAIS Guidelines”). Certain of such","page_number":177,"box":{"x":68,"y":151,"width":822,"height":11}},{"id":"3ae4f6e5-fd32-4ab9-af28-77cff8a7e04d","block_type":"box","text":"Funds, as listed within the Active Fund Proxy Voting Policy and as disclosed in Part I of this SAI, follow supplemental","page_number":177,"box":{"x":70,"y":166,"width":824,"height":11}},{"id":"24eacabf-2d11-4243-a164-5c78e436b6ab","block_type":"box","text":"guidelines within the BAIS Guidelines that are applicable to certain climate and decarbonization issues (the “BAIS","page_number":177,"box":{"x":68,"y":181,"width":812,"height":12}},{"id":"70f58a45-8e46-4204-b6eb-de058b674554","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines”).","page_number":177,"box":{"x":69,"y":197,"width":392,"height":10}},{"id":"2904753d-d1f6-4eb9-90d4-bd4b89dfbd9b","block_type":"box","text":"With respect to Funds covered by the Index Equity Fund Proxy Voting Policy, the Manager has adopted the","page_number":177,"box":{"x":101,"y":219,"width":749,"height":11}},{"id":"b4c2b496-96d3-45c3-9846-7d4c9b5fa5f0","block_type":"box","text":"BlackRock Investment Stewardship (“BIS”) Global Benchmark Policy, comprised of the Global Principles for","page_number":177,"box":{"x":70,"y":234,"width":759,"height":11}},{"id":"556176da-e28a-4b66-a806-428f014f770e","block_type":"box","text":"Benchmark Policies, regional voting guidelines, and engagement priorities, which are each available upon request. In","page_number":177,"box":{"x":70,"y":250,"width":830,"height":11}},{"id":"fcca72a4-c7e1-47ac-8e16-83d034f752de","block_type":"box","text":"addition, certain of such Funds, as listed within the Index Equity Fund Proxy Voting Policy and as disclosed in Part I of","page_number":177,"box":{"x":69,"y":264,"width":838,"height":12}},{"id":"93300f93-c948-4679-a5b7-734b596f0e4e","block_type":"box","text":"this SAI, follow supplemental guidelines that are applicable to certain climate and decarbonization issues (the “BIS","page_number":177,"box":{"x":68,"y":280,"width":822,"height":11}},{"id":"f3b030ad-4059-4f54-a919-3edacfdfa5c4","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines”).","page_number":177,"box":{"x":69,"y":295,"width":392,"height":11}},{"id":"86046c94-ebe5-4da4-9347-9a4c4b115e72","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":177,"box":{"x":102,"y":317,"width":767,"height":12}},{"id":"a267fbf4-61ab-42c6-9f25-f96463b0e644","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":177,"box":{"x":68,"y":332,"width":827,"height":12}},{"id":"dc59929e-d80f-4a32-b5a9-cc77c09be656","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":177,"box":{"x":69,"y":348,"width":819,"height":11}},{"id":"c7286ff5-ec26-4afc-a2e7-9c498d04bca5","block_type":"box","text":"underlying fund may use the Index Equity Fund Proxy Voting Policy, and the opposite is also true.","page_number":177,"box":{"x":69,"y":363,"width":684,"height":11}},{"id":"f6353e45-53f8-49c1-8e42-f8853ccef882","block_type":"box","text":"Copies of the Active Fund Proxy Voting Policy, Index Equity Fund Proxy Voting Policy, the BAIS Guidelines, the","page_number":177,"box":{"x":102,"y":385,"width":766,"height":12}},{"id":"7f174c26-7e86-47ef-a9f8-857f80601e0e","block_type":"box","text":"Global Principles for Benchmark Policies and the BIS Climate and Decarbonization Stewardship Guidelines are","page_number":177,"box":{"x":69,"y":401,"width":784,"height":11}},{"id":"d599c7a0-b518-4893-ba64-8bf1d0e193f7","block_type":"box","text":"attached as Appendix B to this SAI. Only those guidelines that are applicable to a particular Fund pursuant to the","page_number":177,"box":{"x":69,"y":416,"width":805,"height":11}},{"id":"76c922e4-5aa2-4331-a2c0-dd53ba833fde","block_type":"box","text":"Active Fund Proxy Voting Policy or the Index Equity Fund Proxy Voting Policy are considered to form a part of the","page_number":177,"box":{"x":68,"y":431,"width":790,"height":11}},{"id":"a83a873f-b257-4553-8ed9-a21b1777ce4b","block_type":"box","text":"Fund’s SAI. Information on how each Fund voted proxies relating to portfolio securities during the most recent 12-","page_number":177,"box":{"x":70,"y":446,"width":810,"height":11}},{"id":"7f772332-bdbd-4356-b831-45b94a964244","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":177,"box":{"x":69,"y":461,"width":788,"height":11}},{"id":"ec8f6a0c-b60f-48b8-920d-7dc16a62c378","block_type":"box","text":"Commission’s website at http://www.sec.gov.","page_number":177,"box":{"x":69,"y":476,"width":327,"height":11}},{"id":"103e93ca-0d3f-451a-a6dd-6f13ef9198ee","block_type":"box","text":"GENERAL INFORMATION","page_number":177,"box":{"x":391,"y":506,"width":195,"height":9}},{"id":"d565afd0-33ba-48f8-b822-ab637ea9da44","block_type":"box","text":"Description of Shares","page_number":177,"box":{"x":69,"y":536,"width":156,"height":11}},{"id":"e7ac372f-d998-4c2a-af7a-413347bfbac8","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":177,"box":{"x":102,"y":559,"width":800,"height":9}},{"id":"336176d1-972e-4321-a46f-1cae9a68d015","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":177,"box":{"x":69,"y":574,"width":811,"height":11}},{"id":"def1bbb0-98b5-4ebf-86ba-6d54b2451df0","block_type":"box","text":"Shareholders of a class that bears distribution and/or service expenses have exclusive voting rights with respect to","page_number":177,"box":{"x":69,"y":589,"width":825,"height":11}},{"id":"6abde626-905f-4fca-8020-b77a9daa059a","block_type":"box","text":"matters relating to such distribution and service expenditures. Voting rights are not cumulative, so that the holders of","page_number":177,"box":{"x":69,"y":604,"width":838,"height":11}},{"id":"e6444fed-c5eb-49f4-bace-4e1c36ce1713","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":177,"box":{"x":69,"y":619,"width":835,"height":11}},{"id":"ecf8f6dc-bb12-46a8-9eee-efb043904839","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":177,"box":{"x":69,"y":634,"width":781,"height":12}},{"id":"19e0ec83-659b-4dc0-afb3-53a66f9afd74","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":177,"box":{"x":102,"y":657,"width":801,"height":11}},{"id":"20c2fb42-6d37-484a-aa2e-690378ecb890","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":177,"box":{"x":69,"y":672,"width":760,"height":11}},{"id":"b64bea23-064b-4328-99ec-b9fd321a38bd","block_type":"box","text":"management agreement; (iii) approval of a distribution agreement; and (iv) ratification of selection of independent","page_number":177,"box":{"x":69,"y":687,"width":810,"height":11}},{"id":"86d0f739-7e52-4ac2-a4d4-0c762071145c","block_type":"box","text":"accountants. Shares issued are fully paid and non-assessable and have no preemptive rights. Redemption and","page_number":177,"box":{"x":69,"y":702,"width":790,"height":12}},{"id":"dc0c6e51-5497-40cd-a0a5-c43e4dc30759","block_type":"box","text":"conversion rights are discussed elsewhere herein and in each Fund’s Prospectus. Each share of each class of","page_number":177,"box":{"x":69,"y":717,"width":787,"height":12}},{"id":"6d7623d2-4aba-443d-9d67-f2766249268f","block_type":"box","text":"Common Stock is entitled to participate equally in dividends and distributions declared by a Fund and in the net","page_number":177,"box":{"x":69,"y":733,"width":797,"height":11}},{"id":"c2f51537-2450-448e-90d9-8bba9291675d","block_type":"box","text":"assets of the Fund upon liquidation or dissolution after satisfaction of outstanding liabilities.","page_number":177,"box":{"x":69,"y":748,"width":658,"height":11}},{"id":"094687c1-c0aa-41e1-bdf7-655051adc670","block_type":"box","text":"For Funds organized as Maryland corporations, the by-laws of the Fund require that a special meeting of","page_number":177,"box":{"x":102,"y":770,"width":741,"height":12}},{"id":"3e4b592f-71d3-40be-ac80-0f75ce9300e1","block_type":"box","text":"shareholders be held upon the written request of a minimum percentage of the outstanding shares of the Fund","page_number":177,"box":{"x":69,"y":785,"width":790,"height":12}},{"id":"ffec067c-e016-463e-9c4f-9046444eaabe","block_type":"box","text":"entitled to vote at such meeting, if they comply with applicable Maryland law.","page_number":177,"box":{"x":69,"y":801,"width":546,"height":11}},{"id":"a04afaf9-ea6b-4fdb-9d4d-bd8bf58ecea9","block_type":"box","text":"Certain of the Funds are organized as “Massachusetts business trusts.” Under Massachusetts law,","page_number":177,"box":{"x":102,"y":823,"width":712,"height":12}},{"id":"26d9f46d-5abe-4b2b-8b94-db8c24fce5ce","block_type":"box","text":"shareholders of such a trust may, under certain circumstances, be held personally liable as partners for its","page_number":177,"box":{"x":69,"y":838,"width":765,"height":11}},{"id":"6e87dce3-7874-4b78-a255-825be906cc60","block_type":"box","text":"obligations. However, the Declaration of Trust establishing a trust, a copy of which for each applicable Fund, together","page_number":177,"box":{"x":69,"y":853,"width":834,"height":12}},{"id":"54208442-246d-4935-bb23-1b2547a265cf","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":177,"box":{"x":68,"y":869,"width":729,"height":11}},{"id":"d8e110e9-5be6-4550-8995-f7ccb1250299","block_type":"box","text":"Commonwealth of Massachusetts, contains an express disclaimer of shareholder liability for acts or obligations of","page_number":177,"box":{"x":69,"y":884,"width":815,"height":11}},{"id":"8b9b3dc9-4694-46e7-ac0d-3cee96201c0b","block_type":"box","text":"the trust and provides for indemnification and reimbursement of expenses out of the trust property for any","page_number":177,"box":{"x":68,"y":899,"width":761,"height":11}},{"id":"88bb4ac6-cdc2-47f9-8453-649901e251fa","block_type":"box","text":"II-139","page_number":177,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"541b0e57-2b41-440f-b973-751d649105b4","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":177,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3977709e-3603-4821-b6ef-2b208d164292","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":178,"box":{"x":69,"y":45,"width":824,"height":11}},{"id":"d726c531-30d9-45cd-8d2c-e4100c1db271","block_type":"box","text":"may maintain appropriate insurance (for example, fidelity bond and errors and omissions insurance) for the protection","page_number":178,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"72c820e9-2053-4bd0-830c-7ee39f904067","block_type":"box","text":"of the trust, its shareholders, trustees, officers, employees and agents covering possible tort and other liabilities.","page_number":178,"box":{"x":69,"y":75,"width":813,"height":11}},{"id":"9bd81c50-8316-442f-bd03-413cbd37457a","block_type":"box","text":"Thus, the risk of a shareholder incurring financial loss on account of shareholder liability is limited to circumstances","page_number":178,"box":{"x":68,"y":90,"width":827,"height":11}},{"id":"0f1c5c59-6011-4e3d-b040-30eaafeeea88","block_type":"box","text":"in which both inadequate insurance existed and the trust itself was unable to meet its obligations.","page_number":178,"box":{"x":70,"y":105,"width":699,"height":11}},{"id":"eb01006c-2f20-4436-b076-c85f5dc7b9f6","block_type":"box","text":"Certain Funds are organized as Delaware statutory trusts.","page_number":178,"box":{"x":102,"y":128,"width":413,"height":11}},{"id":"46b3578d-eabf-4741-b592-512be2d00e60","block_type":"box","text":"Additional Information","page_number":178,"box":{"x":68,"y":158,"width":161,"height":9}},{"id":"918f2c32-a510-483b-8a35-ed0106cd6332","block_type":"box","text":"Under a separate agreement, BlackRock has granted certain Funds the right to use the “BlackRock” name and","page_number":178,"box":{"x":102,"y":181,"width":789,"height":11}},{"id":"be05f054-3b1a-47dd-9caf-be9f689d6671","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":178,"box":{"x":69,"y":196,"width":799,"height":11}},{"id":"606fb9ba-e97c-4d75-8c17-5e9f96692304","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":178,"box":{"x":70,"y":211,"width":837,"height":11}},{"id":"6addb756-0c19-4c71-b66c-47dbddf646d7","block_type":"box","text":"such name to any other company.","page_number":178,"box":{"x":69,"y":226,"width":238,"height":11}},{"id":"61fed89a-f278-477a-ba10-d9b4adcd3e62","block_type":"box","text":"II-140","page_number":178,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"ff18da79-f3a8-4c4f-b9ce-ea41b6097d63","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":178,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d80648b0-80a9-41f9-a152-e8d2e324f518","block_type":"box","text":"APPENDIX A","page_number":179,"box":{"x":438,"y":45,"width":101,"height":10}},{"id":"162007b2-3cf8-4cc8-b266-b43fcc3c3e7f","block_type":"box","text":"Description of Bond Ratings","page_number":179,"box":{"x":377,"y":68,"width":224,"height":13}},{"id":"8ce25375-f72d-4b6e-b19b-1614823ff48c","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":179,"box":{"x":101,"y":91,"width":743,"height":12}},{"id":"7c6c69b0-801c-4d32-a961-d06d6384997a","block_type":"box","text":"designated as a nationally recognized statistical rating organization (“NRSRO”) by the Securities and Exchange","page_number":179,"box":{"x":69,"y":106,"width":787,"height":12}},{"id":"ddb97beb-48c0-4b3e-bba7-5d6a26a97d87","block_type":"box","text":"Commission (“SEC”). While NRSROs may from time to time revise such ratings, they undertake no obligation to do","page_number":179,"box":{"x":69,"y":121,"width":817,"height":12}},{"id":"5088ddaa-c231-46ee-940b-fb40bdf136d6","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":179,"box":{"x":69,"y":137,"width":837,"height":11}},{"id":"2048ef80-3f67-4b21-be87-cbc116dacfb3","block_type":"box","text":"securities on a particular subsequent date.","page_number":179,"box":{"x":69,"y":152,"width":306,"height":11}},{"id":"11dc1dec-46f0-4848-9963-001d58491850","block_type":"box","text":"NRSROs may rate specific investments (","page_number":179,"box":{"x":102,"y":174,"width":286,"height":12}},{"id":"3c3723dc-b959-4369-9888-775e589592bc","block_type":"box","text":"e.g.","page_number":179,"box":{"x":390,"y":176,"width":25,"height":10}},{"id":"41bb4ef9-edf6-4759-b294-67f3808d720e","block_type":"box","text":", bonds), issuers (","page_number":179,"box":{"x":417,"y":175,"width":128,"height":10}},{"id":"c18ecd66-9a95-4054-b5bf-6e06d5caf6cf","block_type":"box","text":"e.g.","page_number":179,"box":{"x":547,"y":176,"width":25,"height":10}},{"id":"cad90b19-e2bd-40ac-a2d4-5017755e6b89","block_type":"box","text":", corporations, governments and financial","page_number":179,"box":{"x":574,"y":174,"width":293,"height":12}},{"id":"6ddbfee0-bf5a-4580-8677-ebd5310e0576","block_type":"box","text":"institutions) and/or programs (","page_number":179,"box":{"x":70,"y":190,"width":217,"height":11}},{"id":"0b0c04f0-03cd-4430-8110-b06cb16b4b57","block_type":"box","text":"e.g.","page_number":179,"box":{"x":289,"y":191,"width":25,"height":10}},{"id":"10d4bd51-a684-43c5-9612-5ef327bc6257","block_type":"box","text":", commercial paper programs). However, certain types of investments may not be","page_number":179,"box":{"x":317,"y":189,"width":578,"height":12}},{"id":"ed9e6684-7dc3-4820-96b4-7195649cc996","block_type":"box","text":"rated by NRSROs, such as certain government/sovereign obligations, US agency securities, commercial paper, time","page_number":179,"box":{"x":69,"y":205,"width":826,"height":11}},{"id":"d5ec0755-6539-4f68-9733-8487d7de3f5e","block_type":"box","text":"deposits at financial institutions, and derivative instruments such as credit default swaps. For these types of","page_number":179,"box":{"x":69,"y":220,"width":777,"height":11}},{"id":"7bd6e922-00b6-4152-babf-3b3fab73928d","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":179,"box":{"x":70,"y":235,"width":807,"height":11}},{"id":"3f4239fa-2bd5-488a-b1a5-0b67e0c0049b","block_type":"box","text":"specific investment but has rated the investment’s issuer, program, financial institution or underlying reference","page_number":179,"box":{"x":69,"y":250,"width":791,"height":11}},{"id":"e3856bd0-45f7-4d27-a25b-dff6194b969c","block_type":"box","text":"asset, BlackRock Advisors, LLC, BlackRock Fund Advisors or their respective affiliates (“BlackRock”) may consider","page_number":179,"box":{"x":69,"y":265,"width":816,"height":11}},{"id":"9bbacd28-c187-4b25-adb2-3a23c721cafe","block_type":"box","text":"the investment to have the same NRSRO rating as its issuer, program, financial institution or underlying reference","page_number":179,"box":{"x":68,"y":280,"width":812,"height":12}},{"id":"05769e73-1a4f-4f7e-8a67-c5a4a8e30d99","block_type":"box","text":"asset, as applicable. In the case of municipal securities, where one NRSRO provides multiple ratings for the same","page_number":179,"box":{"x":69,"y":295,"width":815,"height":12}},{"id":"be42821a-201e-4cdc-9d23-aa855351f9c5","block_type":"box","text":"security (","page_number":179,"box":{"x":69,"y":311,"width":63,"height":11}},{"id":"07bcb42d-df0f-4259-ba7d-66fc2c5b4e77","block_type":"box","text":"e.g.","page_number":179,"box":{"x":134,"y":312,"width":25,"height":10}},{"id":"fad9a844-7d18-48a9-bc9f-31230c658f23","block_type":"box","text":", “underlying,” “insured” and/or “enhanced” ratings), BlackRock may consider the security to have the","page_number":179,"box":{"x":161,"y":311,"width":730,"height":11}},{"id":"c3892c99-4e92-4dd5-b1b7-2fd5103dd0f9","block_type":"box","text":"highest of the multiple ratings.","page_number":179,"box":{"x":69,"y":326,"width":216,"height":11}},{"id":"beff4b39-e148-4cf6-92d4-a25f180d6886","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":179,"box":{"x":102,"y":348,"width":760,"height":12}},{"id":"608da0fb-371c-403d-b984-ec2d36faf6ff","block_type":"box","text":"Preliminary prospectuses or term sheets for new issue securities may include an expected rating for the security (as","page_number":179,"box":{"x":69,"y":363,"width":830,"height":12}},{"id":"47b48f9b-d7ee-4b44-88b0-55e14be7aa20","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":179,"box":{"x":69,"y":378,"width":812,"height":12}},{"id":"afceb2bf-d22f-408d-9007-fe261eede88b","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":179,"box":{"x":69,"y":394,"width":776,"height":11}},{"id":"7b675b1b-bb2f-4f10-891a-acf9dd21531f","block_type":"box","text":"attribute an expected rating to the security based on: (i) the expected rating of the security set forth in the","page_number":179,"box":{"x":69,"y":409,"width":756,"height":11}},{"id":"a7c1e63f-0571-4aed-880e-bb719fb76802","block_type":"box","text":"preliminary prospectus or term sheet for the security; (ii) the NRSRO’s rating for the issuer of the security set forth in","page_number":179,"box":{"x":70,"y":424,"width":835,"height":11}},{"id":"7bd72359-dbdd-42ef-a10c-2176965c29a0","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":179,"box":{"x":68,"y":439,"width":836,"height":11}},{"id":"53d3f849-5bf7-44d4-959c-d99e2ba2d15f","block_type":"box","text":"a prior issuance having a similar structure or the same sponsor.","page_number":179,"box":{"x":69,"y":454,"width":456,"height":11}},{"id":"fe308226-7d5e-4829-8033-940e9f72648c","block_type":"box","text":"Where the investment objective of a fund is to track the performance of an index that includes credit ratings","page_number":179,"box":{"x":101,"y":477,"width":771,"height":11}},{"id":"74b6082a-21bb-424a-931a-9dd58250f6ed","block_type":"box","text":"eligibility criteria as part of its index methodology, the fund may purchase any security within the index, such security","page_number":179,"box":{"x":69,"y":492,"width":832,"height":11}},{"id":"99e30e9d-9090-4673-9b5c-8f7c39f25bc2","block_type":"box","text":"having been determined by the index provider as meeting its credit ratings eligibility criteria. The credit ratings","page_number":179,"box":{"x":69,"y":507,"width":782,"height":11}},{"id":"fb8b8d4f-13f8-43e5-985d-26091cf7cbb4","block_type":"box","text":"practices of an index provider may differ from BlackRock’s practices, as described above. Further, the fund may","page_number":179,"box":{"x":70,"y":522,"width":796,"height":11}},{"id":"97e6ef75-2d2b-4788-8aea-ae33fb4c6806","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":179,"box":{"x":70,"y":537,"width":811,"height":12}},{"id":"79a0830d-0f34-4848-aa3e-1b77e833db23","block_type":"box","text":"differs from the credit rating specified in its index methodology in various circumstances, including where a security is","page_number":179,"box":{"x":69,"y":552,"width":840,"height":12}},{"id":"09c959c4-71bb-4c6e-8fc3-d927e05ac427","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":179,"box":{"x":69,"y":567,"width":824,"height":12}},{"id":"7d78b876-6369-4c63-9dae-f49b28970a6f","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":179,"box":{"x":68,"y":583,"width":781,"height":11}},{"id":"1a54e985-904a-48c7-bc68-be3a8bff3ce0","block_type":"box","text":"Fixed-income securities which are unrated may expose the investor to risks with respect to capacity to pay","page_number":179,"box":{"x":102,"y":606,"width":756,"height":10}},{"id":"78155c6a-014e-4f4b-b471-8b94cab7d9bc","block_type":"box","text":"interest or repay principal which are similar to the risks of lower-rated speculative bonds (although BlackRock may","page_number":179,"box":{"x":70,"y":620,"width":811,"height":12}},{"id":"e79dc4cc-f1ce-48e9-97fd-0c96b86f3d70","block_type":"box","text":"deem such unrated securities to be of higher quality). Evaluation of these securities is dependent on BlackRock’s","page_number":179,"box":{"x":69,"y":635,"width":809,"height":12}},{"id":"0e770e72-4c11-4ecb-bb11-2fd746c47d8d","block_type":"box","text":"judgment, analysis and experience in the evaluation of such securities.","page_number":179,"box":{"x":67,"y":651,"width":506,"height":11}},{"id":"53bdaba5-591d-42e4-ab09-283e94b6a9f7","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":179,"box":{"x":102,"y":673,"width":776,"height":12}},{"id":"64d32e62-0804-4b6f-9ea7-fc0323c9515e","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":179,"box":{"x":69,"y":688,"width":818,"height":12}},{"id":"51af96e3-3402-4ded-b6b8-18c70e96ee3f","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":179,"box":{"x":102,"y":711,"width":799,"height":11}},{"id":"df978247-8e54-4a9a-9432-5246d64d464b","block_type":"box","text":"Fitch. Other terms used to describe such securities include “lower rated bonds,” “non-investment grade bonds,”","page_number":179,"box":{"x":70,"y":726,"width":798,"height":11}},{"id":"40fc7325-4218-49c8-a997-c7efd07f5866","block_type":"box","text":"“below investment grade bonds,” and “junk bonds.”","page_number":179,"box":{"x":70,"y":742,"width":368,"height":11}},{"id":"cb6ef2a5-db47-4af7-a6b0-2b251fe46f0a","block_type":"box","text":"The descriptions below relate to general long-term and short-term obligations of an issuer.","page_number":179,"box":{"x":101,"y":764,"width":643,"height":11}},{"id":"e0b81e41-9806-4810-aa30-13bbb18906be","block_type":"box","text":"A Description of Moody’s Investors Service, Inc.’s (“Moody’s”) Global Rating Scales","page_number":179,"box":{"x":68,"y":794,"width":616,"height":11}},{"id":"8719ee69-747b-463f-adac-6ddccc9e661e","block_type":"box","text":"Credit ratings are assigned on Moody’s global long-term and short-term rating scales and are forward-looking","page_number":179,"box":{"x":102,"y":817,"width":777,"height":11}},{"id":"673c08f4-e786-4c96-b307-fd9e4327fddf","block_type":"box","text":"opinions of the relative credit risks of financial obligations issued by non-financial corporates, financial institutions,","page_number":179,"box":{"x":69,"y":832,"width":818,"height":11}},{"id":"69125613-2db9-4123-a36c-3389fc8fa1fc","block_type":"box","text":"structured finance vehicles, project finance vehicles, and public sector entities. Moody’s defines credit risk as the","page_number":179,"box":{"x":69,"y":847,"width":812,"height":11}},{"id":"170ad9b7-c494-4154-8433-8c9e8edc50e0","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":179,"box":{"x":69,"y":862,"width":812,"height":12}},{"id":"d20444e7-3e3f-4936-ba9b-c7f35a6a2a0e","block_type":"box","text":"loss in the event of default or impairment. The contractual financial obligations addressed by Moody’s ratings are","page_number":179,"box":{"x":70,"y":877,"width":807,"height":12}},{"id":"bd6fc124-57ae-45c3-bad5-9c84fc9b9afa","block_type":"box","text":"those that call for, without regard to enforceability, the payment of an ascertainable amount, which may vary based","page_number":179,"box":{"x":68,"y":892,"width":821,"height":12}},{"id":"442b78c1-e66b-45e8-9756-6b96f486d6a5","block_type":"box","text":"upon standard sources of variation (","page_number":179,"box":{"x":69,"y":908,"width":257,"height":11}},{"id":"115bc68a-dd26-4ccc-a522-5e3535954f82","block_type":"box","text":"e.g.","page_number":179,"box":{"x":328,"y":909,"width":25,"height":10}},{"id":"64598c0c-0198-4d77-be69-405f0626e77e","block_type":"box","text":", floating interest rates), by an ascertainable date. Moody’s rating addresses","page_number":179,"box":{"x":355,"y":908,"width":548,"height":11}},{"id":"ed424e5a-e7cb-4c7e-b211-63714480d1b8","block_type":"box","text":"A-1","page_number":179,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"4c4bd3d7-c6fc-4879-a4fa-969e91fb59ae","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":179,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6b48852e-f853-4ff7-b87c-e35621fc4c24","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":180,"box":{"x":68,"y":45,"width":821,"height":11}},{"id":"a4bfc0bb-0115-46a5-8092-79b07aec300d","block_type":"box","text":"not address non-standard sources of variation in the amount of the principal obligation (","page_number":180,"box":{"x":69,"y":60,"width":627,"height":11}},{"id":"9e0bb370-7f26-49b1-92a4-4d8357902cbe","block_type":"box","text":"e.g.","page_number":180,"box":{"x":697,"y":61,"width":25,"height":10}},{"id":"32a11eda-7a4b-4e80-a152-c0e8634cbecc","block_type":"box","text":", equity indexed), absent","page_number":180,"box":{"x":725,"y":60,"width":174,"height":11}},{"id":"a73787a7-3fb2-496e-b725-fc99bee4ac84","block_type":"box","text":"an express statement to the contrary in a press release accompanying an initial rating. Long-term ratings are","page_number":180,"box":{"x":69,"y":75,"width":777,"height":11}},{"id":"838d3fc6-a41b-44f4-8ac2-7da1018375f2","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":180,"box":{"x":69,"y":90,"width":771,"height":11}},{"id":"6f6049af-9075-4f81-958d-1269f4ad4c66","block_type":"box","text":"likelihood of a default or impairment on contractual financial obligations and the expected financial loss suffered in","page_number":180,"box":{"x":70,"y":105,"width":819,"height":11}},{"id":"0751b79d-fe6f-4c8e-8673-e2de238440df","block_type":"box","text":"the event of default or impairment. Short-term ratings are assigned for obligations with an original maturity of thirteen","page_number":180,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"e504a130-c37b-4bda-a276-bd0e48410157","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":180,"box":{"x":69,"y":135,"width":822,"height":12}},{"id":"88698441-377b-400d-8441-c7ff4f47284c","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":180,"box":{"x":68,"y":150,"width":829,"height":12}},{"id":"4af875f8-3147-4f10-ad33-54615c49d337","block_type":"box","text":"and instrument level on both the long-term scale and the short-term scale. Typically, ratings are made publicly","page_number":180,"box":{"x":69,"y":166,"width":784,"height":11}},{"id":"8c02af6d-29ad-4d63-92ad-085928e832ed","block_type":"box","text":"available although private and unpublished ratings may also be assigned.","page_number":180,"box":{"x":69,"y":181,"width":521,"height":11}},{"id":"f139c194-1e8e-4465-8b40-5f27c4dd4d3b","block_type":"box","text":"Moody’s differentiates structured finance ratings from fundamental ratings (","page_number":180,"box":{"x":102,"y":203,"width":542,"height":12}},{"id":"85268d9f-80ea-445c-9f4a-41fd088d2089","block_type":"box","text":"i.e.","page_number":180,"box":{"x":646,"y":204,"width":20,"height":8}},{"id":"f915ab3e-07d6-448e-945a-4be51df7c887","block_type":"box","text":", ratings on nonfinancial","page_number":180,"box":{"x":669,"y":203,"width":169,"height":12}},{"id":"21cc47c4-8799-480d-a658-ba2d70d250aa","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":180,"box":{"x":69,"y":218,"width":837,"height":12}},{"id":"c6ce0381-3d58-4739-9b5c-5a2ed66f85e0","block_type":"box","text":"finance ratings. The addition of (sf) to structured finance ratings should eliminate any presumption that such ratings","page_number":180,"box":{"x":68,"y":234,"width":828,"height":11}},{"id":"cc931c28-e5f6-46e7-ad96-8a3e5db79ab1","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":180,"box":{"x":69,"y":249,"width":832,"height":11}},{"id":"8f0ae523-b0a2-4690-94f3-323be94704d9","block_type":"box","text":"security ratings indicates that otherwise similarly rated structured finance and fundamental securities may have","page_number":180,"box":{"x":69,"y":264,"width":797,"height":11}},{"id":"e292ce64-367a-49ad-9fb5-7cfffe8a9720","block_type":"box","text":"different risk characteristics. Through its current methodologies, however, Moody’s aspires to achieve broad","page_number":180,"box":{"x":69,"y":279,"width":771,"height":11}},{"id":"b3d06f6e-be09-4c46-af14-d97d3fefefac","block_type":"box","text":"expected equivalence in structured finance and fundamental rating performance when measured over a long period","page_number":180,"box":{"x":69,"y":294,"width":821,"height":11}},{"id":"3c9c6d84-b422-41bd-9199-b2a2935ab116","block_type":"box","text":"of time.","page_number":180,"box":{"x":69,"y":309,"width":53,"height":9}},{"id":"eedb902d-44cd-4ec6-bf88-697759b39108","block_type":"box","text":"Description of Moody’s Global Long-Term Rating Scale","page_number":180,"box":{"x":69,"y":339,"width":395,"height":12}},{"id":"61c7dcad-cee9-48a2-a6f3-7df554f67caf","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":180,"box":{"x":68,"y":367,"width":815,"height":11}},{"id":"c9c1c717-ab6c-4c0d-827f-7f52f8da235b","block_type":"box","text":"risk.","page_number":180,"box":{"x":197,"y":383,"width":28,"height":8}},{"id":"86afd78d-2fc4-464f-8e4c-04c4b52b6085","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":180,"box":{"x":68,"y":402,"width":773,"height":12}},{"id":"b1bef4f8-5d4d-49a1-b742-914720e9dcc9","block_type":"box","text":"A Obligations rated A are judged to be upper-medium grade and are subject to low credit risk.","page_number":180,"box":{"x":68,"y":423,"width":776,"height":11}},{"id":"a910eb63-5ecd-444e-91a8-24be5ae1f8fc","block_type":"box","text":"Baa Obligations rated Baa are judged to be medium-grade and subject to moderate credit risk and as","page_number":180,"box":{"x":70,"y":443,"width":813,"height":11}},{"id":"51d1913d-4277-4fc3-ac74-98bdd816f718","block_type":"box","text":"such may possess certain speculative characteristics.","page_number":180,"box":{"x":196,"y":458,"width":385,"height":11}},{"id":"c43a11e4-24a6-4102-a808-f44c4a39f5e6","block_type":"box","text":"Ba Obligations rated Ba are judged to be speculative and are subject to substantial credit risk.","page_number":180,"box":{"x":70,"y":478,"width":775,"height":11}},{"id":"e0d8e599-6b82-4ac4-9979-9092f883aaa5","block_type":"box","text":"B Obligations rated B are considered speculative and are subject to high credit risk.","page_number":180,"box":{"x":70,"y":498,"width":707,"height":11}},{"id":"32ed2a91-68aa-459f-afc3-36b0a0461a74","block_type":"box","text":"Caa Obligations rated Caa are judged to be speculative of poor standing and are subject to very high","page_number":180,"box":{"x":69,"y":518,"width":810,"height":12}},{"id":"cc79f587-b836-4c66-8424-cd8f5a7ee4ab","block_type":"box","text":"credit risk.","page_number":180,"box":{"x":196,"y":534,"width":74,"height":8}},{"id":"607e736a-55b4-4e6b-bb2b-c281acc7577c","block_type":"box","text":"Ca Obligations rated Ca are highly speculative and are likely in, or very near, default, with some","page_number":180,"box":{"x":69,"y":554,"width":783,"height":11}},{"id":"9b5be348-a3e9-4316-9c1f-34a5f64440b5","block_type":"box","text":"prospect of recovery of principal and interest.","page_number":180,"box":{"x":197,"y":569,"width":322,"height":11}},{"id":"d4ed4615-cbbd-4bc8-a547-040f81e03345","block_type":"box","text":"C Obligations rated C are the lowest rated and are typically in default, with little prospect for recovery","page_number":180,"box":{"x":69,"y":589,"width":834,"height":11}},{"id":"3d2d4568-d98d-48e1-b6ec-2e374fa9d80f","block_type":"box","text":"of principal or interest.","page_number":180,"box":{"x":196,"y":604,"width":160,"height":11}},{"id":"8e5535fc-e3f2-444a-8f6a-464e28abe793","block_type":"box","text":"Note:","page_number":180,"box":{"x":102,"y":624,"width":37,"height":9}},{"id":"5f5ed906-e281-40f8-afb8-3bcc38002476","block_type":"box","text":"Moody’s appends numerical modifiers 1, 2, and 3 to each generic rating classification from Aa through","page_number":180,"box":{"x":146,"y":624,"width":731,"height":11}},{"id":"e8c97eab-e487-4231-bd00-c66c1e8a2bc2","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":180,"box":{"x":69,"y":639,"width":831,"height":12}},{"id":"6d7da33e-8f00-4917-8a1a-591eeda6e918","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":180,"box":{"x":70,"y":654,"width":829,"height":12}},{"id":"ae4da346-1546-4142-aa98-fec99d8949f5","block_type":"box","text":"Additionally, a “(hyb)” indicator is appended to all ratings of hybrid securities issued by banks, insurers, finance","page_number":180,"box":{"x":68,"y":669,"width":795,"height":12}},{"id":"7057bb72-8774-402e-9743-3251ddee21f7","block_type":"box","text":"companies, and securities firms.","page_number":180,"box":{"x":69,"y":685,"width":232,"height":11}},{"id":"f588940d-362a-4d49-a68b-e1b5fea2a436","block_type":"box","text":"By their terms, hybrid securities allow for the omission of scheduled dividends, interest, or principal payments,","page_number":180,"box":{"x":102,"y":707,"width":787,"height":11}},{"id":"06f97f11-2789-413b-87f8-239cdee32f95","block_type":"box","text":"which can potentially result in impairment if such an omission occurs. Hybrid securities may also be subject to","page_number":180,"box":{"x":68,"y":722,"width":788,"height":12}},{"id":"28705e13-581f-42a2-ac11-2e89e1e26bab","block_type":"box","text":"contractually allowable write-downs of principal that could result in impairment. Together with the hybrid indicator, the","page_number":180,"box":{"x":69,"y":738,"width":833,"height":11}},{"id":"66b0cff5-e376-4226-aa1a-2456d7fd0ce2","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":180,"box":{"x":70,"y":753,"width":809,"height":11}},{"id":"477eea6d-d2ff-47b9-a0cc-61c1f201b90d","block_type":"box","text":"that security.","page_number":180,"box":{"x":68,"y":768,"width":91,"height":11}},{"id":"25cf3fb3-d6f5-4770-95a3-4b88c7ccff7b","block_type":"box","text":"Description of Moody’s Global Short-Term Rating Scale","page_number":180,"box":{"x":69,"y":798,"width":400,"height":11}},{"id":"c3ec8b9a-e973-4659-9c01-5550d09755f6","block_type":"box","text":"P-1 Ratings of Prime-1 reflect a superior ability to repay short-term obligations.","page_number":180,"box":{"x":69,"y":826,"width":658,"height":11}},{"id":"e43ce02e-f62b-42bc-aeae-6f2ede7a339e","block_type":"box","text":"P-2 Ratings of Prime-2 reflect a strong ability to repay short-term obligations.","page_number":180,"box":{"x":69,"y":846,"width":645,"height":11}},{"id":"3fac0f91-898a-4b27-aa31-4c34c8c8580c","block_type":"box","text":"P-3 Ratings of Prime-3 reflect an acceptable ability to repay short-term obligations.","page_number":180,"box":{"x":69,"y":866,"width":686,"height":11}},{"id":"68cfa4d5-fab6-4cac-8742-bb446096a3b9","block_type":"box","text":"NP Issuers (or supporting institutions) rated Not Prime do not fall within any of the Prime rating","page_number":180,"box":{"x":70,"y":886,"width":778,"height":12}},{"id":"28c281d4-7f10-4d04-9af9-c651b3e5cd73","block_type":"box","text":"categories.","page_number":180,"box":{"x":196,"y":902,"width":77,"height":11}},{"id":"c2b8ebc7-a3b7-4275-a39a-21ebf196e455","block_type":"box","text":"A-2","page_number":180,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"0c29b1dd-7b04-4c7c-a5fa-d6e51a53ad60","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":180,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"db02b894-ec9f-4821-9f72-38603a499b43","block_type":"box","text":"Description of Moody’s U.S. Municipal Short-Term Debt and Demand Obligation Ratings","page_number":181,"box":{"x":69,"y":45,"width":637,"height":11}},{"id":"3cbaa14b-3df9-45b9-905c-60cf6b56fa9e","block_type":"box","text":"Moody’s uses the global short-term Prime rating scale for commercial paper issued by U.S. municipalities and","page_number":181,"box":{"x":102,"y":67,"width":784,"height":12}},{"id":"2fb6369d-68b2-4bb4-9fba-fa31e195fa90","block_type":"box","text":"nonprofits. These commercial paper programs may be backed by external letters of credit or liquidity facilities, or by","page_number":181,"box":{"x":69,"y":82,"width":824,"height":12}},{"id":"7744dcc6-9e4c-41d5-876b-0111ff34bac0","block_type":"box","text":"an issuer’s self-liquidity.","page_number":181,"box":{"x":69,"y":98,"width":170,"height":11}},{"id":"dfea8358-3534-4e83-b80e-c4968e71a8ee","block_type":"box","text":"For other short-term municipal obligations, Moody’s uses one of two other short-term rating scales, the","page_number":181,"box":{"x":102,"y":120,"width":736,"height":12}},{"id":"a8e6cdac-b937-4131-9e16-98f6773133c9","block_type":"box","text":"Municipal Investment Grade (“MIG”) and Variable Municipal Investment Grade (“VMIG”) scales discussed below.","page_number":181,"box":{"x":70,"y":135,"width":796,"height":11}},{"id":"d93de64d-6910-42be-8b83-8386438906eb","block_type":"box","text":"MIG Ratings","page_number":181,"box":{"x":102,"y":158,"width":85,"height":11}},{"id":"f108e6ff-d1ae-46a5-a46e-a68304018ca9","block_type":"box","text":"Moody’s uses the MIG scale for U.S. municipal cash flow notes, bond anticipation notes and certain other short","page_number":181,"box":{"x":102,"y":181,"width":803,"height":11}},{"id":"87a137a9-42cb-48a1-b9aa-3abda3f59abe","block_type":"box","text":"term obligations, which typically mature in three years or less. Under certain circumstances, Moody’s uses the MIG","page_number":181,"box":{"x":68,"y":196,"width":823,"height":11}},{"id":"2f6cff5a-ba1e-46c4-b967-d472578a0860","block_type":"box","text":"scale for bond anticipation notes with maturities of up to five years.","page_number":181,"box":{"x":69,"y":211,"width":480,"height":11}},{"id":"dbca7fe1-d282-4586-a07b-1c6c132908d1","block_type":"box","text":"MIG Scale","page_number":181,"box":{"x":102,"y":234,"width":71,"height":9}},{"id":"570a8fb9-d9a6-459c-8b4d-f51ecc29bb0b","block_type":"box","text":"MIG 1 This designation denotes superior credit quality. Excellent protection is afforded by established","page_number":181,"box":{"x":70,"y":261,"width":802,"height":12}},{"id":"c30f3108-31fe-4553-9b64-757525e0df81","block_type":"box","text":"cash flows, highly reliable liquidity support, or demonstrated broad-based access to the market for","page_number":181,"box":{"x":196,"y":276,"width":703,"height":12}},{"id":"ddcbacf0-6e31-4a12-a177-70666249dab0","block_type":"box","text":"refinancing.","page_number":181,"box":{"x":197,"y":292,"width":80,"height":11}},{"id":"454f02fa-c6b1-4cb2-a973-8e58dcf10112","block_type":"box","text":"MIG 2 This designation denotes strong credit quality. Margins of protection are ample, although not as","page_number":181,"box":{"x":70,"y":312,"width":809,"height":11}},{"id":"3654be31-d244-441b-9967-8f50127b3550","block_type":"box","text":"large as in the preceding group.","page_number":181,"box":{"x":197,"y":327,"width":224,"height":11}},{"id":"abd702ca-bdfa-4e02-93f8-6b283914b0c0","block_type":"box","text":"MIG 3 This designation denotes acceptable credit quality. Liquidity and cash-flow protection may be","page_number":181,"box":{"x":70,"y":347,"width":785,"height":11}},{"id":"cc27f42c-f0f0-44a6-ba7f-a86a86259338","block_type":"box","text":"narrow, and market access for refinancing is likely to be less well-established.","page_number":181,"box":{"x":197,"y":362,"width":554,"height":11}},{"id":"6fdf4f11-49b6-4e1b-8a99-9fcb60869662","block_type":"box","text":"SG This designation denotes speculative-grade credit quality. Debt instruments in this category may","page_number":181,"box":{"x":69,"y":382,"width":813,"height":12}},{"id":"4086cbe4-caff-413f-bb19-5ca18d6671ef","block_type":"box","text":"lack sufficient margins of protection.","page_number":181,"box":{"x":197,"y":397,"width":259,"height":12}},{"id":"574490c6-508d-415f-88f7-caf49fe15e93","block_type":"box","text":"VMIG Ratings","page_number":181,"box":{"x":68,"y":425,"width":100,"height":11}},{"id":"20353943-cdf4-4ca5-a624-5bbea2dd1eb7","block_type":"box","text":"In the case of variable rate demand obligations (“VRDOs”), a two-component rating is assigned. The components","page_number":181,"box":{"x":102,"y":448,"width":804,"height":11}},{"id":"b991f9cd-f6e0-4168-9f32-5fe0fc7fc423","block_type":"box","text":"are a long-term rating and a short-term payment obligation rating. The long-term rating addresses the issuer’s ability","page_number":181,"box":{"x":69,"y":463,"width":829,"height":11}},{"id":"c6c5c5f5-5a7c-45d5-a508-fb77aa7b444a","block_type":"box","text":"to meet scheduled principal and interest payments. The short-term payment obligation rating addresses the ability of","page_number":181,"box":{"x":68,"y":478,"width":836,"height":11}},{"id":"f661f74b-4cd7-4230-9092-0abfcc49402f","block_type":"box","text":"the issuer or the liquidity provider meet any purchase-price payment obligation resulting from optional tenders (“on","page_number":181,"box":{"x":68,"y":493,"width":817,"height":11}},{"id":"c6d00375-4e33-4440-a8f6-0f8df482b83d","block_type":"box","text":"demand”) and/or mandatory tenders of the VRDO. The short-term demand obligation rating uses the VMIG scale.","page_number":181,"box":{"x":69,"y":508,"width":807,"height":12}},{"id":"2c52e906-adb8-4c01-94ed-efbb4e9c103e","block_type":"box","text":"VMIG ratings with liquidity support use as an input the short-term Counterparty Risk Assessment of the support","page_number":181,"box":{"x":68,"y":523,"width":800,"height":12}},{"id":"4c15f17c-c3eb-4312-bb33-beb5200b447c","block_type":"box","text":"provider, or the long-term rating of the underlying obligor in the absence of third party liquidity support. Transitions of","page_number":181,"box":{"x":70,"y":538,"width":832,"height":12}},{"id":"abe0ad3e-09d6-44f8-bd4f-702c9d32f54d","block_type":"box","text":"VMIG ratings of demand obligations with conditional liquidity support differ from transitions on the Prime scale to","page_number":181,"box":{"x":68,"y":554,"width":807,"height":11}},{"id":"09760b24-96e7-4380-89b5-03ff89f9dbc0","block_type":"box","text":"reflect the risk that external liquidity support will terminate if the issuer’s long-term rating drops below investment","page_number":181,"box":{"x":69,"y":569,"width":812,"height":11}},{"id":"7fc86a59-3cc5-4068-aef2-aaacd2008051","block_type":"box","text":"grade.","page_number":181,"box":{"x":68,"y":584,"width":43,"height":11}},{"id":"10051cc6-2eba-4e83-be3e-464d2bcbace1","block_type":"box","text":"Moody’s typically assigns the VMIG short-term demand obligation rating if the frequency of the demand feature is","page_number":181,"box":{"x":102,"y":606,"width":807,"height":12}},{"id":"ee263a31-5d65-4458-a7d8-a523da51a403","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":181,"box":{"x":70,"y":622,"width":833,"height":11}},{"id":"2572671c-6528-4a20-9d7f-9067d01272f4","block_type":"box","text":"payable only with remarketing proceeds, the short-term demand obligation rating is “NR”.","page_number":181,"box":{"x":70,"y":637,"width":635,"height":11}},{"id":"1614ff6d-7588-4ddd-85a1-263515a6d9fd","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":181,"box":{"x":102,"y":659,"width":778,"height":12}},{"id":"8d63f857-771d-4afd-a67e-1071e663500c","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":181,"box":{"x":70,"y":675,"width":795,"height":11}},{"id":"02612451-5448-41f5-8a39-fbcaced2410f","block_type":"box","text":"liquidity of the corporate obligor.","page_number":181,"box":{"x":70,"y":690,"width":226,"height":11}},{"id":"b4fcb6be-0a8e-4a14-b149-462ef94fc52b","block_type":"box","text":"VMIG Scale","page_number":181,"box":{"x":101,"y":712,"width":81,"height":9}},{"id":"15661f24-2ade-4138-8d42-d3ce97b40be7","block_type":"box","text":"VMIG 1 This designation denotes superior credit quality. Excellent protection is afforded by the superior","page_number":181,"box":{"x":68,"y":740,"width":808,"height":11}},{"id":"5a98d507-5d5e-4f9b-b346-7df7673a5e08","block_type":"box","text":"short-term credit strength of the liquidity provider and structural and legal protections.","page_number":181,"box":{"x":196,"y":755,"width":613,"height":11}},{"id":"a5a9993e-b8a4-4788-abd2-45dce6e056d8","block_type":"box","text":"VMIG 2 This designation denotes strong credit quality. Good protection is afforded by the strong short-term","page_number":181,"box":{"x":68,"y":775,"width":834,"height":12}},{"id":"4fe14e4b-1352-41bd-a434-60669f891976","block_type":"box","text":"credit strength of the liquidity provider and structural and legal protections.","page_number":181,"box":{"x":196,"y":790,"width":533,"height":12}},{"id":"1c463232-fdd6-4462-9404-a6c618032269","block_type":"box","text":"VMIG 3 This designation denotes acceptable credit quality. Adequate protection is afforded by the","page_number":181,"box":{"x":68,"y":811,"width":768,"height":11}},{"id":"be9e49c7-7b69-4094-a05c-326220049ffe","block_type":"box","text":"satisfactory short-term credit strength of the liquidity provider and structural and legal protections.","page_number":181,"box":{"x":196,"y":826,"width":701,"height":11}},{"id":"a0168ed4-7669-4003-b989-665d9f5973a8","block_type":"box","text":"SG This designation denotes speculative-grade credit quality. Demand features rated in this category","page_number":181,"box":{"x":69,"y":846,"width":820,"height":11}},{"id":"6a70ee8c-f110-4ad4-b9e7-558c242f731a","block_type":"box","text":"may be supported by a liquidity provider that does not have a sufficiently strong short-term rating or","page_number":181,"box":{"x":197,"y":861,"width":711,"height":11}},{"id":"21f0b080-759d-4eaa-93bb-6dd3590328e1","block_type":"box","text":"may lack the structural or legal protections.","page_number":181,"box":{"x":197,"y":876,"width":308,"height":11}},{"id":"239b4ac0-d52d-47f4-b2d4-9be2d12475d7","block_type":"box","text":"A-3","page_number":181,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"2d048eda-b2f4-4491-b0ba-db0da29e39e1","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":181,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"07f250e1-e7a5-4590-849c-fcedb99bde3c","block_type":"box","text":"Description of S&P Global Ratings (“S&P”), a Division of S&P Global Inc., Issue Credit Ratings","page_number":182,"box":{"x":69,"y":45,"width":691,"height":11}},{"id":"76807e89-801d-46aa-b625-117fc491faf6","block_type":"box","text":"An S&P issue credit rating is a forward-looking opinion about the creditworthiness of an obligor with respect to a","page_number":182,"box":{"x":101,"y":67,"width":801,"height":12}},{"id":"28a621a1-adb6-4dc5-95b8-7d689d53fd1f","block_type":"box","text":"specific financial obligation, a specific class of financial obligations, or a specific financial program (including ratings","page_number":182,"box":{"x":69,"y":82,"width":829,"height":12}},{"id":"422e38bb-c5a3-4b80-b538-639b74ddcb3e","block_type":"box","text":"on medium-term note programs and commercial paper programs). It takes into consideration the creditworthiness of","page_number":182,"box":{"x":69,"y":98,"width":831,"height":11}},{"id":"d94baeb3-fe37-41c8-b06e-78cadbf1f1e0","block_type":"box","text":"guarantors, insurers, or other forms of credit enhancement on the obligation and takes into account the currency in","page_number":182,"box":{"x":68,"y":113,"width":823,"height":11}},{"id":"919e1059-2f6c-4d08-a2c0-0f6d1b1e02e7","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":182,"box":{"x":68,"y":128,"width":841,"height":11}},{"id":"e17faba8-478b-43ed-97c7-cc0c56773c77","block_type":"box","text":"its financial commitments as they come due, and this opinion may assess terms, such as collateral security and","page_number":182,"box":{"x":70,"y":143,"width":801,"height":11}},{"id":"10c8d8f7-3e5c-4e7d-9c9b-f8288d19494c","block_type":"box","text":"subordination, which could affect ultimate payment in the event of default.","page_number":182,"box":{"x":69,"y":158,"width":530,"height":11}},{"id":"4f05fad5-060e-4b36-af46-60131e538ccf","block_type":"box","text":"Issue credit ratings can be either long-term or short-term. Short-term issue credit ratings are generally assigned","page_number":182,"box":{"x":102,"y":181,"width":796,"height":11}},{"id":"f7712200-a4fe-4866-bf02-585c143cdffc","block_type":"box","text":"to those obligations considered short-term in the relevant market, typically with an original maturity of no more than","page_number":182,"box":{"x":68,"y":196,"width":825,"height":11}},{"id":"e106aca9-3ebd-46a2-a41e-e599fe27d360","block_type":"box","text":"365 days. Short-term issue credit ratings are also used to indicate the creditworthiness of an obligor with respect to","page_number":182,"box":{"x":69,"y":211,"width":832,"height":11}},{"id":"d26e8525-9137-45d0-9174-7d272c443f56","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":182,"box":{"x":70,"y":226,"width":826,"height":11}},{"id":"3b64b93d-a8c5-4a39-9836-d98409d3f62c","block_type":"box","text":"an original maturity of greater than 365 days. However, the ratings S&P assigns to certain instruments may diverge","page_number":182,"box":{"x":69,"y":241,"width":823,"height":11}},{"id":"f81154d8-58a6-427f-a907-44a56fb99623","block_type":"box","text":"from these guidelines based on market practices.","page_number":182,"box":{"x":68,"y":256,"width":354,"height":12}},{"id":"5201beb5-e5b3-4bae-8c21-3d21eff431b1","block_type":"box","text":"Issue credit ratings are based, in varying degrees, on S&P’s analysis of the following considerations:","page_number":182,"box":{"x":102,"y":279,"width":718,"height":11}},{"id":"3f512812-d77a-42c7-a0f6-40c3b3585830","block_type":"box","text":"•","page_number":182,"box":{"x":69,"y":302,"width":6,"height":5}},{"id":"2475d88d-7b85-4542-81b9-45b2c2d652ca","block_type":"box","text":"The likelihood of payment—the capacity and willingness of the obligor to meet its financial commitments on an","page_number":182,"box":{"x":101,"y":299,"width":790,"height":11}},{"id":"ab781310-818a-4aaf-bbbb-9ac681a5cfcf","block_type":"box","text":"obligation in accordance with the terms of the obligation;","page_number":182,"box":{"x":102,"y":314,"width":404,"height":12}},{"id":"cdd4ae6c-a13b-46b5-92f3-9edf50f57263","block_type":"box","text":"•","page_number":182,"box":{"x":69,"y":337,"width":6,"height":5}},{"id":"7c8859db-e06e-4525-be3e-5e74ee7f5f68","block_type":"box","text":"The nature and provisions of the financial obligation, and the promise S&P imputes; and","page_number":182,"box":{"x":101,"y":334,"width":629,"height":12}},{"id":"038030af-398b-4cb7-b1f8-106e466bc283","block_type":"box","text":"•","page_number":182,"box":{"x":69,"y":357,"width":6,"height":5}},{"id":"e420d303-6104-412c-86e3-83a782cbbf40","block_type":"box","text":"The protection afforded by, and relative position of, the financial obligation in the event of a bankruptcy,","page_number":182,"box":{"x":101,"y":355,"width":738,"height":11}},{"id":"86356db8-2aba-4527-86b3-83317fa90d52","block_type":"box","text":"reorganization, or other arrangement under the laws of bankruptcy and other laws affecting creditors’ rights.","page_number":182,"box":{"x":102,"y":370,"width":770,"height":11}},{"id":"832cfab9-eb9b-432a-8675-ebb1c7693626","block_type":"box","text":"An issue rating is an assessment of default risk but may incorporate an assessment of relative seniority or","page_number":182,"box":{"x":101,"y":392,"width":763,"height":12}},{"id":"1f1888a3-87ef-4814-8f85-46503ebc7b1a","block_type":"box","text":"ultimate recovery in the event of default. Junior obligations are typically rated lower than senior obligations, to reflect","page_number":182,"box":{"x":69,"y":407,"width":833,"height":12}},{"id":"7eac0ac8-05a1-4c2b-b08b-87108c6aeae4","block_type":"box","text":"lower priority in bankruptcy, as noted above. (Such differentiation may apply when an entity has both senior and","page_number":182,"box":{"x":70,"y":423,"width":794,"height":11}},{"id":"80cc7586-996a-4067-abdb-0120a424257a","block_type":"box","text":"subordinated obligations, secured and unsecured obligations, or operating company and holding company","page_number":182,"box":{"x":69,"y":438,"width":754,"height":11}},{"id":"ffb0ef2b-497c-4000-b808-5d0f20204f98","block_type":"box","text":"obligations.)","page_number":182,"box":{"x":69,"y":453,"width":86,"height":11}},{"id":"bcd6e2a1-7265-4870-8d5a-27dd41c01f72","block_type":"box","text":"Long-Term Issue Credit Ratings*","page_number":182,"box":{"x":69,"y":483,"width":236,"height":11}},{"id":"a14b97a8-3b22-4141-afd3-6169fafa6609","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":182,"box":{"x":68,"y":511,"width":833,"height":11}},{"id":"3fcd4a1a-63bb-40c5-a5e4-92de3e1dd4dc","block_type":"box","text":"financial commitments on the obligation is extremely strong.","page_number":182,"box":{"x":196,"y":526,"width":429,"height":11}},{"id":"0f114da7-5465-44c6-806b-db8a844ab2b4","block_type":"box","text":"AA An obligation rated ‘AA’ differs from the highest-rated obligations only to a small degree. The","page_number":182,"box":{"x":68,"y":546,"width":788,"height":11}},{"id":"e9604bc3-2c4c-4f22-b64b-c3dd56694d16","block_type":"box","text":"obligor’s capacity to meet its financial commitments on the obligation is very strong.","page_number":182,"box":{"x":196,"y":561,"width":602,"height":11}},{"id":"57e687e4-6853-41f7-9197-c8f995011120","block_type":"box","text":"A An obligation rated ‘A’ is somewhat more susceptible to the adverse effects of changes in","page_number":182,"box":{"x":68,"y":581,"width":770,"height":12}},{"id":"8baa27dc-c5e6-4514-b7de-c9cd0154d8f1","block_type":"box","text":"circumstances and economic conditions than obligations in higher-rated categories. However, the","page_number":182,"box":{"x":196,"y":597,"width":692,"height":11}},{"id":"70ea31f8-b01e-4948-8417-1a0c9c4c4813","block_type":"box","text":"obligor’s capacity to meet its financial commitments on the obligation is still strong.","page_number":182,"box":{"x":196,"y":612,"width":598,"height":11}},{"id":"0402bf6b-4e17-4000-baee-bb13fdd3bc64","block_type":"box","text":"BBB An obligation rated ‘BBB’ exhibits adequate protection parameters. However, adverse economic","page_number":182,"box":{"x":70,"y":632,"width":806,"height":11}},{"id":"ffd80307-b94d-4e64-9e33-26a8c3eafdb5","block_type":"box","text":"conditions or changing circumstances are more likely to weaken the obligor’s capacity to meet its","page_number":182,"box":{"x":196,"y":647,"width":694,"height":11}},{"id":"491ab79f-bf33-4445-8469-bf00125b8b91","block_type":"box","text":"financial commitments on the obligation.","page_number":182,"box":{"x":196,"y":662,"width":289,"height":11}},{"id":"bcdaba5c-8ae9-4153-a0ea-ac716934dfef","block_type":"box","text":"BB,","page_number":182,"box":{"x":70,"y":682,"width":22,"height":11}},{"id":"489e56c6-1eca-4353-a6bb-9c3fd8745721","block_type":"box","text":"B,","page_number":182,"box":{"x":70,"y":697,"width":12,"height":11}},{"id":"6b65ecab-6ea8-433c-8d29-f6115a42a37e","block_type":"box","text":"CCC,","page_number":182,"box":{"x":69,"y":712,"width":33,"height":11}},{"id":"1fb45ec6-146e-4833-9c50-cfc129ce979f","block_type":"box","text":"CC,","page_number":182,"box":{"x":69,"y":728,"width":23,"height":10}},{"id":"102819dc-e0e3-46f4-a1aa-ff49e28c4d24","block_type":"box","text":"and C","page_number":182,"box":{"x":69,"y":743,"width":40,"height":9}},{"id":"b03d8499-93d6-4011-800b-1749a7c22900","block_type":"box","text":"Obligations rated ‘BB’, ‘B’, ‘CCC’, ‘CC’, and ‘C’ are regarded as having significant speculative","page_number":182,"box":{"x":196,"y":682,"width":667,"height":11}},{"id":"d319a32b-c241-4b78-9223-8926729427c1","block_type":"box","text":"characteristics. ‘BB’ indicates the least degree of speculation and ‘C’ the highest. While such","page_number":182,"box":{"x":196,"y":697,"width":667,"height":12}},{"id":"163c86cb-4af1-4538-8cee-40696be49c40","block_type":"box","text":"obligations will likely have some quality and protective characteristics, these may be outweighed by","page_number":182,"box":{"x":196,"y":713,"width":707,"height":11}},{"id":"4196fa5e-5a73-4423-88f9-3f9ab50a7896","block_type":"box","text":"large uncertainties or major exposure to adverse conditions.","page_number":182,"box":{"x":197,"y":728,"width":428,"height":11}},{"id":"1e77afd1-1423-4832-8807-8239da20259d","block_type":"box","text":"BB An obligation rated ‘BB’ is less vulnerable to nonpayment than other speculative issues. However, it","page_number":182,"box":{"x":70,"y":763,"width":838,"height":11}},{"id":"57725f86-736c-42a5-b86c-c17c4c20144c","block_type":"box","text":"faces major ongoing uncertainties or exposure to adverse business, financial, or economic","page_number":182,"box":{"x":196,"y":778,"width":646,"height":11}},{"id":"4399f599-6578-41e5-8a18-1f474ba5abaf","block_type":"box","text":"conditions that could lead to the obligor’s inadequate capacity to meet its financial commitments","page_number":182,"box":{"x":196,"y":793,"width":692,"height":11}},{"id":"b8dcb6e5-ea2a-4f2b-8d02-0cf5846cf4f5","block_type":"box","text":"on the obligation.","page_number":182,"box":{"x":196,"y":808,"width":122,"height":11}},{"id":"0c62a84e-6db3-41dc-bb58-e6d2ffa2dd7e","block_type":"box","text":"B An obligation rated ‘B’ is more vulnerable to nonpayment than obligations rated ‘BB’, but the obligor","page_number":182,"box":{"x":70,"y":828,"width":840,"height":12}},{"id":"b84fba3e-3146-4910-a9b0-960b0d380888","block_type":"box","text":"currently has the capacity to meet its financial commitments on the obligation. Adverse business,","page_number":182,"box":{"x":196,"y":843,"width":695,"height":12}},{"id":"bda40e92-4be1-4a99-9837-9e225c5e2a02","block_type":"box","text":"financial, or economic conditions will likely impair the obligor’s capacity or willingness to meet its","page_number":182,"box":{"x":196,"y":858,"width":691,"height":12}},{"id":"4b0bb9ef-4e8d-477e-9282-18634b715055","block_type":"box","text":"financial commitments on the obligation.","page_number":182,"box":{"x":196,"y":874,"width":289,"height":11}},{"id":"2668db0c-cc3c-4c05-a3b8-e629ace44d1d","block_type":"box","text":"A-4","page_number":182,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"87b9dac8-c417-4f69-a372-71a5dcb73a4b","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":182,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"88be1056-416c-4ba9-bd55-cbfbb1ce52d6","block_type":"box","text":"CCC An obligation rated ‘CCC’ is currently vulnerable to nonpayment and is dependent upon favorable","page_number":183,"box":{"x":69,"y":48,"width":816,"height":12}},{"id":"2abb7bdc-61dc-42e6-89a7-bcd5e638d356","block_type":"box","text":"business, financial, and economic conditions for the obligor to meet its financial commitments on","page_number":183,"box":{"x":196,"y":63,"width":695,"height":12}},{"id":"572fb115-1213-400b-9025-98957641788c","block_type":"box","text":"the obligation. In the event of adverse business, financial, or economic conditions, the obligor is","page_number":183,"box":{"x":195,"y":79,"width":687,"height":11}},{"id":"562f2887-f1a3-4969-affe-fcdc2e9cd5d5","block_type":"box","text":"not likely to have the capacity to meet its financial commitments on the obligation.","page_number":183,"box":{"x":197,"y":94,"width":586,"height":11}},{"id":"18a83b8b-4028-4b7b-9c44-70e9831097ea","block_type":"box","text":"CC An obligation rated ‘CC’ is currently highly vulnerable to nonpayment. The ‘CC’ rating is used when","page_number":183,"box":{"x":69,"y":114,"width":826,"height":11}},{"id":"225c765c-911a-42b4-b921-125d27a09efd","block_type":"box","text":"a default has not yet occurred but S&P expects default to be a virtual certainty, regardless of the","page_number":183,"box":{"x":196,"y":129,"width":692,"height":11}},{"id":"05497cb3-0fa0-4268-9f0f-c44d9ffa2fae","block_type":"box","text":"anticipated time to default.","page_number":183,"box":{"x":196,"y":144,"width":191,"height":11}},{"id":"2f5a41d9-1117-424f-a6ff-812e00cf1b35","block_type":"box","text":"C An obligation rated ‘C’ is currently highly vulnerable to nonpayment, and the obligation is expected","page_number":183,"box":{"x":69,"y":164,"width":826,"height":12}},{"id":"ddac7e7e-2d38-4af3-a42f-5c6948dfff40","block_type":"box","text":"to have lower relative seniority or lower ultimate recovery compared with obligations that are rated","page_number":183,"box":{"x":195,"y":180,"width":700,"height":11}},{"id":"eb33aca8-db5c-4614-b581-f168e3620e2b","block_type":"box","text":"higher.","page_number":183,"box":{"x":197,"y":195,"width":45,"height":11}},{"id":"d893fb51-d380-4e73-adb3-2a6849124137","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":183,"box":{"x":70,"y":215,"width":789,"height":11}},{"id":"d2967237-84bd-4109-b1f6-9532e37e4f03","block_type":"box","text":"instruments, the ‘D’ rating category is used when payments on an obligation are not made on the","page_number":183,"box":{"x":197,"y":230,"width":695,"height":11}},{"id":"5864470a-f6e5-4872-8bb2-c34f223cfb00","block_type":"box","text":"date due, unless S&P believes that such payments will be made within five business days in the","page_number":183,"box":{"x":196,"y":245,"width":686,"height":11}},{"id":"c6155271-7e32-4193-86b9-fdeffd54b01a","block_type":"box","text":"absence of a stated grace period or within the earlier of the stated grace period or 30 calendar","page_number":183,"box":{"x":196,"y":260,"width":676,"height":11}},{"id":"53a431c7-87b0-4cc0-86e0-113197f37470","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":183,"box":{"x":196,"y":275,"width":708,"height":11}},{"id":"06f28157-19d1-4f33-9898-e8a8149159b3","block_type":"box","text":"action and where default on an obligation is a virtual certainty, for example due to automatic stay","page_number":183,"box":{"x":196,"y":290,"width":694,"height":12}},{"id":"8e290df7-9e95-4f60-bb03-93bed0c74708","block_type":"box","text":"provisions. A rating on an obligation is lowered to ‘D’ if it is subject to a distressed debt","page_number":183,"box":{"x":197,"y":305,"width":626,"height":12}},{"id":"2f1d9775-c6a3-4e6f-8416-7c23d4daf5b9","block_type":"box","text":"restructuring.","page_number":183,"box":{"x":197,"y":321,"width":92,"height":11}},{"id":"459a4eea-e846-4a34-b4cd-c0b91c0f0824","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":183,"box":{"x":103,"y":341,"width":756,"height":11}},{"id":"daed8c82-2f3c-4fa7-a060-58cf6213d87b","block_type":"box","text":"standing within the rating categories.","page_number":183,"box":{"x":69,"y":356,"width":262,"height":11}},{"id":"bbfe41c6-69c7-4201-91fc-a0da5dbdfd70","block_type":"box","text":"Short-Term Issue Credit Ratings","page_number":183,"box":{"x":68,"y":386,"width":233,"height":11}},{"id":"38df1e5c-5494-4ddc-a4ab-adb56f3b5a6c","block_type":"box","text":"A-1 A short-term obligation rated ‘A-1’ is rated in the highest category by S&P. The obligor’s capacity to","page_number":183,"box":{"x":68,"y":414,"width":833,"height":11}},{"id":"eda2dcad-5b4e-4334-a0a0-b796f341542e","block_type":"box","text":"meet its financial commitments on the obligation is strong. Within this category, certain obligations","page_number":183,"box":{"x":197,"y":429,"width":707,"height":11}},{"id":"b9e47009-6914-473a-a4d2-ae0a5896de9a","block_type":"box","text":"are designated with a plus sign (+). This indicates that the obligor’s capacity to meet its financial","page_number":183,"box":{"x":196,"y":444,"width":691,"height":11}},{"id":"598195bb-04d7-4de7-b6b8-043c40a6b3ed","block_type":"box","text":"commitments on these obligations is extremely strong.","page_number":183,"box":{"x":196,"y":459,"width":390,"height":11}},{"id":"6eed384e-7fca-45cd-ad78-c8556900178c","block_type":"box","text":"A-2 A short-term obligation rated ‘A-2’ is somewhat more susceptible to the adverse effects of changes","page_number":183,"box":{"x":68,"y":479,"width":837,"height":12}},{"id":"d7690851-35bf-44a7-b17d-246982da3763","block_type":"box","text":"in circumstances and economic conditions than obligations in higher rating categories. However,","page_number":183,"box":{"x":197,"y":495,"width":684,"height":11}},{"id":"218dc495-aeba-4d6f-8218-f5e991dba637","block_type":"box","text":"the obligor’s capacity to meet its financial commitments on the obligation is satisfactory.","page_number":183,"box":{"x":195,"y":509,"width":634,"height":12}},{"id":"f9566cf0-cb8c-4326-808f-2afc5989740c","block_type":"box","text":"A-3 A short-term obligation rated ‘A-3’ exhibits adequate protection parameters. However, adverse","page_number":183,"box":{"x":68,"y":530,"width":798,"height":11}},{"id":"b8d77834-d2a8-4baa-be43-f06c42a2fc37","block_type":"box","text":"economic conditions or changing circumstances are more likely to weaken an obligor’s capacity to","page_number":183,"box":{"x":196,"y":545,"width":699,"height":11}},{"id":"b34750ec-d059-487c-950f-07a27e38ee80","block_type":"box","text":"meet its financial commitments on the obligation.","page_number":183,"box":{"x":197,"y":560,"width":351,"height":11}},{"id":"75c5d014-875d-4be4-a042-2cf93398335d","block_type":"box","text":"B A short-term obligation rated ‘B’ is regarded as vulnerable and has significant speculative","page_number":183,"box":{"x":70,"y":580,"width":765,"height":11}},{"id":"b560fdd9-2cdf-4e38-869f-f4904b3bab3c","block_type":"box","text":"characteristics. The obligor currently has the capacity to meet its financial commitments; however,","page_number":183,"box":{"x":196,"y":595,"width":700,"height":11}},{"id":"2e30e189-692f-4487-a095-e5d32de9b433","block_type":"box","text":"it faces major ongoing uncertainties that could lead to the obligor’s inadequate capacity to meet its","page_number":183,"box":{"x":197,"y":610,"width":708,"height":12}},{"id":"7c85bb52-6d51-47fc-89b6-e24204aaf27a","block_type":"box","text":"financial commitments.","page_number":183,"box":{"x":196,"y":625,"width":165,"height":9}},{"id":"6a85bfd1-46f2-4e69-b76e-1ad99dac033f","block_type":"box","text":"C A short-term obligation rated ‘C’ is currently vulnerable to nonpayment and is dependent upon","page_number":183,"box":{"x":69,"y":646,"width":796,"height":11}},{"id":"142dbc4d-a29c-40ca-839e-78fc73c83aad","block_type":"box","text":"favorable business, financial, and economic conditions for the obligor to meet its financial","page_number":183,"box":{"x":196,"y":661,"width":641,"height":11}},{"id":"cf40c9b0-7546-4b94-9a79-6ebc4c442218","block_type":"box","text":"commitments on the obligation.","page_number":183,"box":{"x":196,"y":676,"width":224,"height":11}},{"id":"51c5f3a8-ab02-4b55-bcb8-eed2478cea17","block_type":"box","text":"D A short-term obligation rated ‘D’ is in default or in breach of an imputed promise. For non-hybrid","page_number":183,"box":{"x":70,"y":696,"width":808,"height":11}},{"id":"b0bf377e-f6f7-4357-95f9-3b26212642e3","block_type":"box","text":"capital instruments, the ‘D’ rating category is used when payments on an obligation are not made","page_number":183,"box":{"x":196,"y":711,"width":698,"height":11}},{"id":"410f10d7-eef8-4828-8c01-7781afd1efc7","block_type":"box","text":"on the date due, unless S&P believes that such payments will be made within any stated grace","page_number":183,"box":{"x":196,"y":726,"width":678,"height":12}},{"id":"de46da05-5c9a-447e-a0ea-5b5cfd85202b","block_type":"box","text":"period. However, any stated grace period longer than five business days will be treated as five","page_number":183,"box":{"x":197,"y":741,"width":669,"height":12}},{"id":"8c3568eb-ab36-4baa-8f41-fe13e6c24ea2","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":183,"box":{"x":196,"y":756,"width":707,"height":12}},{"id":"5ba6bc16-b746-42d0-afe2-6d417231e80e","block_type":"box","text":"of a similar action and where default on an obligation is a virtual certainty, for example due to","page_number":183,"box":{"x":196,"y":772,"width":669,"height":11}},{"id":"30bc0a40-cac3-47e7-96b9-6ed520f6ef9a","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":183,"box":{"x":196,"y":787,"width":700,"height":11}},{"id":"78b650c2-33f8-4d26-b894-dc5cca6dedbc","block_type":"box","text":"debt restructuring.","page_number":183,"box":{"x":196,"y":802,"width":130,"height":11}},{"id":"15cf585e-ed85-4c46-bad2-0fa074f91c51","block_type":"box","text":"Description of S&P’s Municipal Short-Term Note Ratings","page_number":183,"box":{"x":69,"y":830,"width":411,"height":11}},{"id":"8206f434-8454-4498-81c8-d1a38f66a2f0","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":183,"box":{"x":101,"y":852,"width":772,"height":11}},{"id":"41937b8a-93f7-4b11-8d2c-a9a211e216eb","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":183,"box":{"x":69,"y":868,"width":823,"height":11}},{"id":"033bafc7-d0d4-45ab-bec5-1968136f3cb5","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":183,"box":{"x":69,"y":882,"width":832,"height":12}},{"id":"881c6e23-a4ff-4eb4-b602-2e352ec03bd6","block_type":"box","text":"assign, S&P’s analysis will review the following considerations:","page_number":183,"box":{"x":69,"y":898,"width":447,"height":11}},{"id":"1e79d543-3fe1-4222-a6d1-c0eae9d55631","block_type":"box","text":"A-5","page_number":183,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"15eb93f1-451a-40c6-8ca8-1629322cb537","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":183,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d8c3e876-09c9-4c93-bf8d-32721f75a7f7","block_type":"box","text":"•","page_number":184,"box":{"x":69,"y":48,"width":6,"height":4}},{"id":"78fce465-1bab-4e7b-bc54-a3818ff200be","block_type":"box","text":"Amortization schedule—the larger the final maturity relative to other maturities, the more likely it will be treated","page_number":184,"box":{"x":101,"y":45,"width":796,"height":11}},{"id":"2023bd29-3276-4525-a358-89a79f1dba76","block_type":"box","text":"as a note; and","page_number":184,"box":{"x":102,"y":60,"width":101,"height":10}},{"id":"d43e7115-f49e-42c2-8f27-876bedc5354b","block_type":"box","text":"•","page_number":184,"box":{"x":69,"y":83,"width":6,"height":4}},{"id":"dde9ea00-6828-4df2-a2cc-160f76122f90","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":184,"box":{"x":102,"y":80,"width":794,"height":11}},{"id":"b3e6e126-b112-4afb-8734-7513d611ebd5","block_type":"box","text":"treated as a note.","page_number":184,"box":{"x":101,"y":95,"width":127,"height":9}},{"id":"0a5509c5-2a3c-4abc-a366-2ad4a45c026e","block_type":"box","text":"S&P’s municipal short-term note rating symbols are as follows:","page_number":184,"box":{"x":102,"y":118,"width":448,"height":11}},{"id":"ce8d6d18-5199-4524-a87d-9f5a80df3f4a","block_type":"box","text":"SP-1 Strong capacity to pay principal and interest. An issue determined to possess a very strong","page_number":184,"box":{"x":69,"y":146,"width":779,"height":11}},{"id":"5eb74e5c-5d08-4f52-ae9e-d54e0c1a159f","block_type":"box","text":"capacity to pay debt service is given a plus (+) designation.","page_number":184,"box":{"x":196,"y":161,"width":422,"height":11}},{"id":"11f98201-d17b-4c6b-b408-ba908c4c80c1","block_type":"box","text":"SP-2 Satisfactory capacity to pay principal and interest, with some vulnerability to adverse financial and","page_number":184,"box":{"x":69,"y":181,"width":825,"height":11}},{"id":"dffbfc05-d821-4411-9e5a-0d045119159d","block_type":"box","text":"economic changes over the term of the notes.","page_number":184,"box":{"x":196,"y":196,"width":327,"height":11}},{"id":"cd2b8df8-ab67-4c5f-a96f-852b2cd45709","block_type":"box","text":"SP-3 Speculative capacity to pay principal and interest.","page_number":184,"box":{"x":69,"y":216,"width":479,"height":11}},{"id":"36b89688-57d8-4afb-bd07-07a9e283c41d","block_type":"box","text":"D ‘D’ is assigned upon failure to pay the note when due, completion of a distressed debt","page_number":184,"box":{"x":70,"y":236,"width":745,"height":11}},{"id":"20d1ac09-f08a-4829-acb4-183bc96f053c","block_type":"box","text":"restructuring, or the filing of a bankruptcy petition or the taking of similar action and where default","page_number":184,"box":{"x":197,"y":251,"width":699,"height":12}},{"id":"c3f6776a-9a21-496c-9204-82711bb1a2da","block_type":"box","text":"on an obligation is a virtual certainty, for example due to automatic stay provisions.","page_number":184,"box":{"x":196,"y":266,"width":594,"height":12}},{"id":"20c8f0a5-e966-4989-ac7b-a7a091ead515","block_type":"box","text":"Description of Fitch Ratings’ (“Fitch”) Credit Ratings Scales","page_number":184,"box":{"x":69,"y":294,"width":442,"height":11}},{"id":"0ef98151-3e15-4e52-9068-978aea5f29bc","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":184,"box":{"x":102,"y":317,"width":793,"height":11}},{"id":"cf0f4640-0514-4223-b5d5-10c46f42ab0d","block_type":"box","text":"meet financial commitments. Issuer default ratings (IDRs) are assigned to corporations, sovereign entities, financial","page_number":184,"box":{"x":69,"y":332,"width":826,"height":11}},{"id":"965e9a2e-c5db-4f03-b228-6859b2161b1a","block_type":"box","text":"institutions such as banks, leasing companies and insurers, and public finance entities (local and regional","page_number":184,"box":{"x":70,"y":347,"width":756,"height":11}},{"id":"8966a041-f0a9-4314-8b9f-991d7b77a4d3","block_type":"box","text":"governments). Issue level ratings are also assigned, often include an expectation of recovery and may be notched","page_number":184,"box":{"x":68,"y":362,"width":813,"height":11}},{"id":"29b17a8f-0d3e-493a-8784-18046e819508","block_type":"box","text":"above or below the issuer level rating. Issue ratings are assigned to secured and unsecured debt securities, loans,","page_number":184,"box":{"x":69,"y":377,"width":819,"height":12}},{"id":"814321c6-b737-4ec5-af23-f00f4293913a","block_type":"box","text":"preferred stock and other instruments, Structured finance ratings are issue ratings to securities backed by","page_number":184,"box":{"x":70,"y":392,"width":760,"height":12}},{"id":"c47b9da2-84a8-40ae-b5bf-4fcd6be1cb7e","block_type":"box","text":"receivables or other financial assets that consider the obligations’ relative vulnerability to default.","page_number":184,"box":{"x":69,"y":407,"width":694,"height":12}},{"id":"344c526a-9ce5-466e-a9d0-1680923c7595","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":184,"box":{"x":102,"y":430,"width":747,"height":11}},{"id":"c2257e8b-df48-44d9-b652-aa683b4104c3","block_type":"box","text":"commitments, such as interest, preferred dividends, repayment of principal, insurance claims or counterparty","page_number":184,"box":{"x":69,"y":445,"width":782,"height":11}},{"id":"a76a4590-e044-4bf7-97f8-88632fb50331","block_type":"box","text":"obligations. Credit ratings relating to securities and obligations of an issuer can include a recovery expectation.","page_number":184,"box":{"x":69,"y":460,"width":793,"height":12}},{"id":"1dd2f696-03ed-43e9-9375-79add7afad8e","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":184,"box":{"x":69,"y":475,"width":761,"height":12}},{"id":"b68b2a8d-e6c3-4c8d-add3-c41b81454811","block_type":"box","text":"accordance with the terms on which they invested. The agency’s credit ratings cover the global spectrum of","page_number":184,"box":{"x":69,"y":491,"width":766,"height":11}},{"id":"3837b3c4-d85e-4db6-91e4-28aabddfc246","block_type":"box","text":"corporate, sovereign financial, bank, insurance, and public finance entities (including supranational and sub-national","page_number":184,"box":{"x":69,"y":506,"width":827,"height":11}},{"id":"d6a72a6e-0330-42e1-8618-cc0a5ef4d946","block_type":"box","text":"entities) and the securities or other obligations they issue, as well as structured finance securities backed by","page_number":184,"box":{"x":69,"y":521,"width":779,"height":11}},{"id":"99148db0-6062-4439-98cf-d89f7f43b8e7","block_type":"box","text":"receivables or other financial assets.","page_number":184,"box":{"x":69,"y":536,"width":262,"height":9}},{"id":"35d1dc22-c772-4ce6-8783-f49863e838fd","block_type":"box","text":"The terms “investment grade” and “speculative grade” have established themselves over time as shorthand to","page_number":184,"box":{"x":101,"y":559,"width":794,"height":11}},{"id":"83e1cc7d-b94a-416b-aaef-2652ea9f735c","block_type":"box","text":"describe the categories ‘AAA’ to ‘BBB’ (investment grade) and ‘BB’ to ‘D’ (speculative grade). The terms investment","page_number":184,"box":{"x":69,"y":574,"width":826,"height":11}},{"id":"7ea3f981-8ae1-4e9c-88f0-b90ee6822114","block_type":"box","text":"grade and speculative grade are market conventions and do not imply any recommendation or endorsement of a","page_number":184,"box":{"x":68,"y":589,"width":800,"height":11}},{"id":"3ed4aff1-5d0f-40eb-b3e0-30d51398e57a","block_type":"box","text":"specific security for investment purposes. Investment grade categories indicate relatively low to moderate credit risk,","page_number":184,"box":{"x":69,"y":604,"width":832,"height":11}},{"id":"1227adab-02aa-42c1-975c-fe62be39b8ea","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":184,"box":{"x":68,"y":619,"width":793,"height":11}},{"id":"a481f883-1738-4ab0-9e0b-be63970271c6","block_type":"box","text":"occurred.","page_number":184,"box":{"x":69,"y":634,"width":65,"height":9}},{"id":"323b56bd-60ec-4dc4-8134-33cc28ca7fff","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":184,"box":{"x":102,"y":657,"width":779,"height":11}},{"id":"70890e62-e610-4d10-b2e7-717184bc6524","block_type":"box","text":"Such issues are also denoted as ‘NR’.","page_number":184,"box":{"x":69,"y":672,"width":274,"height":9}},{"id":"a5693282-cb0c-4750-9b9b-8449e4a433ec","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":184,"box":{"x":102,"y":695,"width":797,"height":11}},{"id":"b72de2f5-4ff9-48e2-a6e9-38f5690f92e2","block_type":"box","text":"not predictive of a specific frequency of default or loss.","page_number":184,"box":{"x":69,"y":710,"width":391,"height":11}},{"id":"dd672346-129f-4912-96a6-183ebd948b3e","block_type":"box","text":"Fitch’s credit ratings do not directly address any risk other than credit risk. In particular, ratings do not deal with","page_number":184,"box":{"x":102,"y":733,"width":798,"height":11}},{"id":"3943eed9-db94-4761-bb57-90ed892d4449","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":184,"box":{"x":68,"y":748,"width":780,"height":11}},{"id":"9b646997-c20d-4d2f-932e-c16d834f5f26","block_type":"box","text":"considerations. However, in terms of payment obligation on the rated liability, market risk may be considered to the","page_number":184,"box":{"x":69,"y":763,"width":821,"height":11}},{"id":"a20bb6de-e06b-4dc0-bbca-1269c54bce7c","block_type":"box","text":"extent that it influences the ability of an issuer to pay upon a commitment.","page_number":184,"box":{"x":69,"y":778,"width":531,"height":11}},{"id":"94df3939-971e-405c-9fbe-71c85ca5062d","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":184,"box":{"x":102,"y":801,"width":801,"height":11}},{"id":"e8a2ca2e-4a67-4cf7-b2c8-8b9368bd1032","block_type":"box","text":"the obligation to pay upon a commitment (for example, in the case of index-linked bonds).","page_number":184,"box":{"x":68,"y":816,"width":639,"height":11}},{"id":"0ceffb11-9205-4327-9997-bcfef9b3c6c3","block_type":"box","text":"In the default components of ratings assigned to individual obligations or instruments, the agency typically rates","page_number":184,"box":{"x":102,"y":838,"width":799,"height":12}},{"id":"589cd236-b96a-434e-afca-1ca62dc69f13","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":184,"box":{"x":68,"y":853,"width":794,"height":12}},{"id":"74b971fa-3873-4861-bc5a-cad02ae85155","block_type":"box","text":"limited cases, Fitch may include additional considerations (","page_number":184,"box":{"x":70,"y":869,"width":420,"height":11}},{"id":"71d2a32b-d031-4637-8326-c7d580f0992c","block_type":"box","text":"i.e.","page_number":184,"box":{"x":492,"y":869,"width":20,"height":9}},{"id":"f06543ef-0f3c-4a3c-bb42-b029c9207aa8","block_type":"box","text":"rate to a higher or lower standard than that implied in","page_number":184,"box":{"x":519,"y":869,"width":380,"height":11}},{"id":"ed5c343f-1d88-4e84-9591-77c1a040dcc4","block_type":"box","text":"the obligation’s documentation).","page_number":184,"box":{"x":68,"y":884,"width":230,"height":11}},{"id":"e2af4423-ad7b-4597-be65-2e0a4a826c3d","block_type":"box","text":"A-6","page_number":184,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"ac00594d-635d-46b6-991e-bc8ddb8c79f6","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":184,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"da949155-729e-45b4-9303-b97e9307baa3","block_type":"box","text":"The primary credit rating scales can be used to provide a rating of privately issued obligations or certain note","page_number":185,"box":{"x":101,"y":45,"width":779,"height":11}},{"id":"75b1cd1d-37ac-4398-ab06-9d901bdd1b95","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":185,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"c550a5d5-987e-46de-a7e9-c76b6772dde4","block_type":"box","text":"agents in the form of a rating letter.","page_number":185,"box":{"x":69,"y":75,"width":253,"height":11}},{"id":"513aae9d-c3bc-4a9f-a900-edbb3375e980","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":185,"box":{"x":101,"y":98,"width":797,"height":11}},{"id":"e6b8d2f5-b00f-4598-a42a-d62f089fa2f1","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":185,"box":{"x":69,"y":113,"width":806,"height":11}},{"id":"68a9b552-c1e9-465e-8bd4-84e184e581bb","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":185,"box":{"x":69,"y":128,"width":796,"height":11}},{"id":"23b53f32-c630-4a15-b0a7-d63a1f315124","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":185,"box":{"x":69,"y":143,"width":811,"height":11}},{"id":"cb82d26e-96a9-42e2-abc0-2b6eee39e2c1","block_type":"box","text":"case letter symbol combined with either an ‘*’ (","page_number":185,"box":{"x":69,"y":158,"width":340,"height":11}},{"id":"f2777075-996a-4ce3-b633-72fb860b64e8","block_type":"box","text":"e.g.","page_number":185,"box":{"x":410,"y":160,"width":25,"height":9}},{"id":"64716ae2-1d44-41e5-9c25-a92404172288","block_type":"box","text":"‘bbb+*’) or (cat) suffix to denote the opinion status. Credit","page_number":185,"box":{"x":443,"y":158,"width":418,"height":11}},{"id":"fcaddedc-6ae3-44e6-b05c-1543becabbdb","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":185,"box":{"x":69,"y":173,"width":780,"height":11}},{"id":"29d7152b-3880-45f8-950e-4da67520b2a3","block_type":"box","text":"sufficiently available. Rating assessment services are a notch-specific view using the primary rating scale of how an","page_number":185,"box":{"x":69,"y":188,"width":827,"height":12}},{"id":"a44b8102-8df3-40c3-a5d8-706affa79b84","block_type":"box","text":"existing or potential rating may be changed by a given set of hypothetical circumstances. While credit opinions and","page_number":185,"box":{"x":69,"y":203,"width":816,"height":12}},{"id":"00f5735a-4ef5-4f78-9b48-a39c8a68e5fe","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":185,"box":{"x":69,"y":219,"width":808,"height":11}},{"id":"693b80a2-6527-456a-9e11-1be1666f7a5c","block_type":"box","text":"assigned, which can signify the trajectory of the credit profile.","page_number":185,"box":{"x":69,"y":234,"width":437,"height":11}},{"id":"d89beea5-46df-4a17-91e1-cb1bfbf56463","block_type":"box","text":"Description of Fitch’s Long-Term Corporate Finance Obligations Rating Scales","page_number":185,"box":{"x":69,"y":264,"width":567,"height":11}},{"id":"492facc6-977b-43bb-8628-d473e2ad2a05","block_type":"box","text":"Ratings of individual securities or financial obligations of a corporate issuer address relative vulnerability to","page_number":185,"box":{"x":102,"y":286,"width":763,"height":12}},{"id":"6a1f853e-bd2f-4232-9177-efd2cbe62321","block_type":"box","text":"default on an ordinal scale. In addition, for financial obligations in corporate finance, a measure of recovery given","page_number":185,"box":{"x":69,"y":302,"width":807,"height":11}},{"id":"e67fcec0-2a87-43fb-b713-e8e0c18a8861","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":185,"box":{"x":69,"y":317,"width":840,"height":11}},{"id":"10a1623f-acb8-4a5a-9623-92d75ada880c","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":185,"box":{"x":70,"y":332,"width":833,"height":11}},{"id":"30cc8a79-bdb1-47e3-8d4e-2eb8dcf89f97","block_type":"box","text":"On the contrary, Ratings of debtor-in-possession (“DIP”) obligations incorporate the expectation of full repayment.","page_number":185,"box":{"x":69,"y":347,"width":807,"height":11}},{"id":"ed956e39-b7d5-42a1-a51b-d33f6dae7205","block_type":"box","text":"The relationship between the issuer scale and obligation scale assumes a generic historical average recovery.","page_number":185,"box":{"x":101,"y":370,"width":784,"height":11}},{"id":"71bd504a-13e0-4a87-8773-97da43a3f34d","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":185,"box":{"x":70,"y":385,"width":787,"height":11}},{"id":"4c73aedb-00a6-4d62-9774-70d8ee3d5ba0","block_type":"box","text":"default rating (“IDR”), based on their relative ranking, relative vulnerability to default or based on explicit Recovery","page_number":185,"box":{"x":69,"y":400,"width":813,"height":11}},{"id":"ae0fe3ae-7dce-4932-807c-92352e41d3ed","block_type":"box","text":"Ratings.","page_number":185,"box":{"x":70,"y":415,"width":55,"height":11}},{"id":"e725b996-8324-4f85-b592-2add986e5baa","block_type":"box","text":"As a result, individual obligations of entities, such as corporations, are assigned ratings higher, lower, or the","page_number":185,"box":{"x":101,"y":438,"width":772,"height":11}},{"id":"4adf7dc4-0cdd-4fee-916d-af33699468db","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":185,"box":{"x":69,"y":453,"width":815,"height":11}},{"id":"a255892b-ae1e-447b-84f1-50206b3d703e","block_type":"box","text":"end of the ratings scale, Fitch publishes explicit Recovery Ratings in many cases to complement issuer and","page_number":185,"box":{"x":69,"y":468,"width":766,"height":11}},{"id":"9dbfc9f5-e697-4ee6-9d7c-96b6f4d4ae9e","block_type":"box","text":"obligation ratings.","page_number":185,"box":{"x":69,"y":483,"width":125,"height":11}},{"id":"426b250d-7da5-4593-9bc2-45e894704399","block_type":"box","text":"Fitch long-term obligations rating scales are as follows:","page_number":185,"box":{"x":102,"y":506,"width":390,"height":11}},{"id":"ca6fd4fb-b8f9-4bb1-812d-89b767560143","block_type":"box","text":"AAA Highest Credit Quality. ‘AAA’ ratings denote the lowest expectation of default risk. They are","page_number":185,"box":{"x":68,"y":533,"width":774,"height":12}},{"id":"7d9aa9dd-8719-4adf-9698-d4029438b820","block_type":"box","text":"assigned only in cases of exceptionally strong capacity for payment of financial commitments. This","page_number":185,"box":{"x":196,"y":549,"width":703,"height":11}},{"id":"26fd0fbf-9fef-47cb-9ad2-adde80f1a5f6","block_type":"box","text":"capacity is highly unlikely to be adversely affected by foreseeable events.","page_number":185,"box":{"x":196,"y":564,"width":521,"height":11}},{"id":"e80de978-67e6-4553-ae20-6b6229e64a8e","block_type":"box","text":"AA Very High Credit Quality. ‘AA’ ratings denote expectations of very low default risk. They indicate very","page_number":185,"box":{"x":68,"y":584,"width":838,"height":11}},{"id":"39936f25-99ea-496e-b717-069874b1943d","block_type":"box","text":"strong capacity for payment of financial commitments. This capacity is not significantly vulnerable","page_number":185,"box":{"x":196,"y":599,"width":694,"height":11}},{"id":"270967b4-dcbd-4734-bf1b-28b83020e8e3","block_type":"box","text":"to foreseeable events.","page_number":185,"box":{"x":195,"y":614,"width":159,"height":9}},{"id":"245727be-4765-4056-9dcd-b9a116b8a187","block_type":"box","text":"A High Credit Quality. ‘A’ ratings denote expectations of low default risk. The capacity for payment of","page_number":185,"box":{"x":68,"y":634,"width":828,"height":12}},{"id":"623acfe5-4921-4993-8b2f-0010e77cdb5f","block_type":"box","text":"financial commitments is considered strong. This capacity may, nevertheless, be more vulnerable","page_number":185,"box":{"x":196,"y":649,"width":695,"height":12}},{"id":"1fa5a38d-609d-4fb5-904e-26d8d5f2160b","block_type":"box","text":"to adverse business or economic conditions than is the case for higher ratings.","page_number":185,"box":{"x":195,"y":664,"width":565,"height":12}},{"id":"2bc09d07-88eb-4993-adb5-4c40954c390a","block_type":"box","text":"BBB Good Credit Quality. ‘BBB’ ratings indicate that expectations of default risk are currently low. The","page_number":185,"box":{"x":70,"y":685,"width":814,"height":11}},{"id":"1a616a8a-6eaa-430e-8979-7fb65b72c653","block_type":"box","text":"capacity for payment of financial commitments is considered adequate, but adverse business or","page_number":185,"box":{"x":196,"y":700,"width":686,"height":11}},{"id":"82549c56-56a1-483d-9d78-1801d61196b4","block_type":"box","text":"economic conditions are more likely to impair this capacity.","page_number":185,"box":{"x":196,"y":715,"width":420,"height":11}},{"id":"68bad60b-b3fe-4f52-b5da-b907904f7843","block_type":"box","text":"BB Speculative. ‘BB’ ratings indicate an elevated vulnerability to default risk, particularly in the event of","page_number":185,"box":{"x":70,"y":735,"width":839,"height":11}},{"id":"b0d9df10-01e2-4af0-9d4e-c58114e44e86","block_type":"box","text":"adverse changes in business or economic conditions over time; however, business or financial","page_number":185,"box":{"x":196,"y":750,"width":672,"height":11}},{"id":"6fa3f953-f205-4df9-9e84-d3ccdd3cb652","block_type":"box","text":"flexibility exists that supports the servicing of financial commitments.","page_number":185,"box":{"x":196,"y":765,"width":495,"height":12}},{"id":"e174ee27-2f46-4b34-b79f-c1c3d282a88f","block_type":"box","text":"B Highly Speculative. ‘B’ ratings indicate that material default risk is present, but a limited margin of","page_number":185,"box":{"x":70,"y":785,"width":828,"height":12}},{"id":"05538b03-899a-4020-bd52-9d5604799b52","block_type":"box","text":"safety remains. Financial commitments are currently being met; however, capacity for continued","page_number":185,"box":{"x":196,"y":801,"width":682,"height":11}},{"id":"5836a9d8-d969-48aa-b351-425647520c81","block_type":"box","text":"payment is vulnerable to deterioration in the business and economic environment.","page_number":185,"box":{"x":197,"y":816,"width":584,"height":11}},{"id":"0002115c-310e-43ec-a016-d983fc5b952e","block_type":"box","text":"CCC Substantial Credit Risk. ‘CCC’ ratings indicate very low margin for safety. Default is a real","page_number":185,"box":{"x":69,"y":836,"width":764,"height":11}},{"id":"a8df74db-b465-45a6-bfbd-54c982cc036f","block_type":"box","text":"possibility.","page_number":185,"box":{"x":197,"y":851,"width":72,"height":11}},{"id":"7002d9c8-375e-4014-8a31-e28af9bf9792","block_type":"box","text":"CC Very High Levels of Credit Risk. ‘CC’ ratings indicate default of some kind appears probable.","page_number":185,"box":{"x":69,"y":871,"width":784,"height":11}},{"id":"2ab55176-bfc5-4f0b-b699-31f86c42c233","block_type":"box","text":"C Exceptionally High Levels of Credit Risk. ‘C’ ratings indicate default or default-like process has","page_number":185,"box":{"x":69,"y":891,"width":798,"height":12}},{"id":"465177ed-512d-42d3-a3b7-7114d1903af5","block_type":"box","text":"begun, or for a closed funding vehicle, payment capacity is irrevocably impaired.","page_number":185,"box":{"x":196,"y":906,"width":569,"height":12}},{"id":"75478c20-cf09-4294-b2b1-ae7f60d825d3","block_type":"box","text":"A-7","page_number":185,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"2d571cd5-6da7-49ec-9694-dc67c2f8f4a8","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":185,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7d9d0cee-7d80-4c47-baf9-5f1212c195b5","block_type":"box","text":"RD Restricted Default. ‘RD’ ratings indicate an issuer that in Fitch’s opinion has experienced an","page_number":186,"box":{"x":70,"y":48,"width":782,"height":12}},{"id":"0f96c8fe-1fd3-4cc6-87c2-bce611c41475","block_type":"box","text":"uncured payment default or distressed debt exchange on a bond, loan or other material financial","page_number":186,"box":{"x":197,"y":63,"width":686,"height":12}},{"id":"2c499340-4763-4274-bab6-087357824feb","block_type":"box","text":"obligation, but has not entered into bankruptcy filings, administration, receivership, liquidation, or","page_number":186,"box":{"x":196,"y":79,"width":696,"height":11}},{"id":"10782847-32c8-4db5-bb2d-8d7417af1c72","block_type":"box","text":"other formal winding-up procedure, and has not otherwise ceased operating.","page_number":186,"box":{"x":196,"y":94,"width":544,"height":11}},{"id":"e3581923-f79f-4a45-9d76-8d2e7e39be3f","block_type":"box","text":"D Default. ‘D’ ratings indicate an issuer that in Fitch’s opinion has entered into bankruptcy filings,","page_number":186,"box":{"x":70,"y":114,"width":807,"height":11}},{"id":"30ddeaeb-6e54-490c-aa76-99d379327b71","block_type":"box","text":"administration, receivership, liquidation or other formal winding-up procedure or that has otherwise","page_number":186,"box":{"x":196,"y":129,"width":705,"height":11}},{"id":"2d824f0e-987c-4a45-8a95-a87c0e8b70ac","block_type":"box","text":"ceased business and debt is still outstanding.","page_number":186,"box":{"x":196,"y":144,"width":328,"height":11}},{"id":"038af53e-73d8-4158-9754-6b3aa5688b81","block_type":"box","text":"Within rating categories, Fitch may use modifiers. The modifiers “+” or “-” may be appended to a rating to denote","page_number":186,"box":{"x":101,"y":164,"width":808,"height":12}},{"id":"b3f939d0-f05c-43e9-994f-43e4ce0c105a","block_type":"box","text":"relative status within major rating categories.","page_number":186,"box":{"x":69,"y":180,"width":320,"height":11}},{"id":"2ab487e6-f925-46ab-9f32-3495476d17c5","block_type":"box","text":"For example, the rating category ‘AA’ has three notch-specific rating levels (‘AA+’; ‘AA’; ‘AA–’; each a rating","page_number":186,"box":{"x":102,"y":202,"width":761,"height":11}},{"id":"6058e527-642f-49d0-853b-bce541540068","block_type":"box","text":"level). Such suffixes are not added to ‘AAA’ ratings and ratings below the ‘CCC’ category. For the short-term rating","page_number":186,"box":{"x":70,"y":217,"width":813,"height":12}},{"id":"b0eda04d-45c3-4c4f-828f-ba402d9fd08c","block_type":"box","text":"category of ‘F1’, a ‘+’ may be appended.","page_number":186,"box":{"x":69,"y":232,"width":289,"height":12}},{"id":"2157189c-36d7-4902-8333-c417a4f7ecf5","block_type":"box","text":"Description of Fitch’s Short-Term Ratings Assigned to Issuers and Obligations","page_number":186,"box":{"x":69,"y":263,"width":568,"height":11}},{"id":"7aebb01b-2e5f-431a-ab5a-dee619b38acd","block_type":"box","text":"A short-term issuer or obligation rating is based in all cases on the short-term vulnerability to default of the rated","page_number":186,"box":{"x":101,"y":285,"width":806,"height":12}},{"id":"1cdfa008-f39d-403c-8e45-69c709cc278d","block_type":"box","text":"entity and relates to the capacity to meet financial obligations in accordance with the documentation governing the","page_number":186,"box":{"x":69,"y":300,"width":817,"height":12}},{"id":"31732c75-8b23-4528-8c55-8880c8e8dd79","block_type":"box","text":"relevant obligation. Short-term deposit ratings may be adjusted for loss severity. Short-term ratings are assigned to","page_number":186,"box":{"x":69,"y":315,"width":822,"height":12}},{"id":"ee003027-59d1-45e0-b146-6d91c2694cf1","block_type":"box","text":"obligations whose initial maturity is viewed as “short term” based on market convention. Typically, this means up to","page_number":186,"box":{"x":69,"y":331,"width":827,"height":11}},{"id":"e7da1133-9786-469b-a93f-e9a02675f73b","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":186,"box":{"x":70,"y":346,"width":808,"height":11}},{"id":"5ac3ff77-ca47-4ac4-ad25-0a89a01acaf9","block_type":"box","text":"finance markets.","page_number":186,"box":{"x":68,"y":361,"width":118,"height":9}},{"id":"1a4ca800-a856-4f78-a53c-b470118cb3f7","block_type":"box","text":"Fitch short-term ratings are as follows:","page_number":186,"box":{"x":102,"y":383,"width":273,"height":12}},{"id":"ff5ef818-dc2b-4c4e-90e9-17b6cd02735b","block_type":"box","text":"F1 Highest Short-Term Credit Quality. Indicates the strongest intrinsic capacity for timely payment of","page_number":186,"box":{"x":70,"y":411,"width":816,"height":12}},{"id":"350a51bd-5d3b-4453-9db3-720e7d8a4d76","block_type":"box","text":"financial commitments; may have an added “+” to denote any exceptionally strong credit feature.","page_number":186,"box":{"x":196,"y":426,"width":692,"height":12}},{"id":"75f63ac2-f6bc-45e6-b2b7-302ce1827404","block_type":"box","text":"F2 Good Short-Term Credit Quality. Good intrinsic capacity for timely payment of financial","page_number":186,"box":{"x":70,"y":446,"width":734,"height":12}},{"id":"8a235094-1287-4d02-9ee8-4289f3bc4095","block_type":"box","text":"commitments.","page_number":186,"box":{"x":196,"y":462,"width":100,"height":9}},{"id":"587a6e5c-ffd4-47b8-b155-8b8c4a0446a5","block_type":"box","text":"F3 Fair Short-Term Credit Quality. The intrinsic capacity for timely payment of financial commitments is","page_number":186,"box":{"x":70,"y":482,"width":831,"height":11}},{"id":"d9ca13e9-e1fd-4638-ba9f-a18ac962a661","block_type":"box","text":"adequate.","page_number":186,"box":{"x":196,"y":497,"width":70,"height":11}},{"id":"18a4f55d-236d-4592-9918-7e4aabd1ef4e","block_type":"box","text":"B Speculative Short-Term Credit Quality. Minimal capacity for timely payment of financial","page_number":186,"box":{"x":70,"y":517,"width":737,"height":11}},{"id":"14cbae43-f9ec-4e97-ab8c-c1f122b4b885","block_type":"box","text":"commitments, plus heightened vulnerability to near term adverse changes in financial and","page_number":186,"box":{"x":196,"y":532,"width":641,"height":11}},{"id":"88625023-4e1a-43a0-ac1f-a8f5b92a5324","block_type":"box","text":"economic conditions.","page_number":186,"box":{"x":196,"y":548,"width":149,"height":8}},{"id":"c0060d40-e6a6-465b-a7d2-5756c3c00c62","block_type":"box","text":"C High Short-Term Default Risk. Default is a real possibility.","page_number":186,"box":{"x":69,"y":567,"width":535,"height":12}},{"id":"4776c772-2ecf-4db1-99e9-03169a719a0b","block_type":"box","text":"RD Restricted Default. Indicates an entity that has defaulted on one or more of its financial","page_number":186,"box":{"x":70,"y":588,"width":749,"height":11}},{"id":"34acad6c-44c6-4d98-be63-0a6e44a074a9","block_type":"box","text":"commitments, although it continues to meet other financial obligations. Typically applicable to entity","page_number":186,"box":{"x":196,"y":603,"width":714,"height":11}},{"id":"39f6e2b7-0d19-4c8f-9066-7c7633df33f8","block_type":"box","text":"ratings only.","page_number":186,"box":{"x":197,"y":618,"width":83,"height":11}},{"id":"5ad122fb-8767-49f6-b08d-4ab9a049e761","block_type":"box","text":"D Default. Indicates a broad-based default event for an entity, or the default of a short-term","page_number":186,"box":{"x":70,"y":638,"width":761,"height":11}},{"id":"75b94cd3-b6ba-415a-98ef-baea49605086","block_type":"box","text":"obligation.","page_number":186,"box":{"x":196,"y":653,"width":72,"height":11}},{"id":"af9204dc-74c5-4340-8ea0-19c379848ed4","block_type":"box","text":"A-8","page_number":186,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"f711dcd8-0e25-4fc3-9889-ea366e1b7ee8","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":186,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"75d71022-514c-4ffb-a9ea-1763a1992bd9","block_type":"box","text":"APPENDIX B","page_number":187,"box":{"x":438,"y":76,"width":101,"height":9}},{"id":"770afe08-d83a-4730-9d33-fea5ad71bbf9","block_type":"box","text":"Open-End Active and Fixed Income Index Fund Proxy Voting Policy","page_number":187,"box":{"x":247,"y":106,"width":484,"height":11}},{"id":"df4bde4e-976e-4846-ab11-52b9433a2159","block_type":"box","text":"Procedures Governing Delegation of Proxy Voting to Fund Advisers","page_number":187,"box":{"x":247,"y":121,"width":486,"height":11}},{"id":"af600816-0239-44a7-a3b5-5c010b317393","block_type":"box","text":"Effective Date: January 1, 2025","page_number":187,"box":{"x":376,"y":136,"width":227,"height":11}},{"id":"46495879-f9af-45ad-81cc-ae443d369e0a","block_type":"box","text":"Applies to the following types of Funds registered under the 1940 Act:","page_number":187,"box":{"x":231,"y":159,"width":515,"height":11}},{"id":"9448addb-9844-4d3e-89d3-8536a926d461","block_type":"box","text":"□","page_number":187,"box":{"x":284,"y":181,"width":15,"height":12}},{"id":"7de2a45a-9e4d-4d6c-8020-7ae597f09681","block_type":"box","text":"Index Equity Mutual Funds and Exchange-Traded Funds","page_number":187,"box":{"x":306,"y":182,"width":388,"height":11}},{"id":"bb7c5664-37dc-47ba-a842-44d280479c4b","block_type":"box","text":"Open-End Active and Fixed Income Index Mutual Funds and Exchange-Traded Funds","page_number":187,"box":{"x":205,"y":204,"width":589,"height":11}},{"id":"550753c6-030d-4d85-a1d2-08da506ab173","block_type":"box","text":"□","page_number":187,"box":{"x":405,"y":227,"width":14,"height":11}},{"id":"eaa359fd-9010-473b-95a5-bf24a9b7cb6c","block_type":"box","text":"Money Market Funds","page_number":187,"box":{"x":426,"y":227,"width":147,"height":11}},{"id":"57b568a7-9562-45a3-841c-fb887b562e07","block_type":"box","text":"□","page_number":187,"box":{"x":416,"y":249,"width":14,"height":12}},{"id":"be8fb5b2-35f7-409a-b29d-e1665b4a9993","block_type":"box","text":"Closed-End Funds","page_number":187,"box":{"x":437,"y":249,"width":125,"height":9}},{"id":"a7c379df-c148-461c-ac0b-ddefc4696e54","block_type":"box","text":"□","page_number":187,"box":{"x":460,"y":272,"width":14,"height":11}},{"id":"3cad6a9d-6f0e-40c3-9dc9-fad78087d6e6","block_type":"box","text":"Other","page_number":187,"box":{"x":481,"y":272,"width":38,"height":9}},{"id":"80310cb4-9dd2-4ab1-94af-a2ea1d3e93d5","block_type":"box","text":"Objective and Scope","page_number":187,"box":{"x":101,"y":295,"width":149,"height":11}},{"id":"f7a42a95-5de7-4b61-8db5-ac275cc3070f","block_type":"box","text":"Set forth below is the Open-End Active and Fixed Income Index Fund Proxy Voting Policy.","page_number":187,"box":{"x":134,"y":317,"width":622,"height":12}},{"id":"0d459cdd-8ac4-478c-bee9-efbc174281f3","block_type":"box","text":"Policy/Document Requirements and Statements","page_number":187,"box":{"x":102,"y":340,"width":354,"height":11}},{"id":"f84e76d4-d8f0-44bd-b899-49bf1b40dd3f","block_type":"box","text":"The Boards of Trustees/Directors (“Directors”) of certain open-end funds (the “Funds”) advised by","page_number":187,"box":{"x":134,"y":363,"width":702,"height":11}},{"id":"77968531-1cb6-4005-aea8-dd494cd3d4e1","block_type":"box","text":"BlackRock Fund Advisors or BlackRock Advisors, LLC (“BlackRock”), have the responsibility for the oversight of","page_number":187,"box":{"x":102,"y":378,"width":789,"height":11}},{"id":"0bcf2c0b-d983-42ed-81d4-733ab80a11e4","block_type":"box","text":"voting proxies relating to portfolio securities of the Funds, and have determined that it is in the best interests of","page_number":187,"box":{"x":101,"y":393,"width":801,"height":11}},{"id":"7ce39447-8234-4c79-86a9-1b9ecbb9665a","block_type":"box","text":"the Funds and their shareholders to delegate the responsibility to vote proxies to BlackRock, subject to the","page_number":187,"box":{"x":101,"y":408,"width":763,"height":11}},{"id":"a55855b8-533a-451f-8a24-aeeb9d83a819","block_type":"box","text":"principles outlined in this Policy, as part of BlackRock’s authority to manage, acquire and dispose of account","page_number":187,"box":{"x":102,"y":423,"width":775,"height":12}},{"id":"b644703d-83b2-483b-bd4d-4aeb51fe0d80","block_type":"box","text":"assets, all as contemplated by the Funds’ respective investment management agreements.","page_number":187,"box":{"x":102,"y":439,"width":651,"height":11}},{"id":"6db39cc5-30a4-495b-a3fd-6b4920cd55f6","block_type":"box","text":"BlackRock has adopted the BlackRock Active Investment Stewardship Global Engagement and Voting","page_number":187,"box":{"x":135,"y":461,"width":718,"height":11}},{"id":"02587109-8bf7-4aec-a159-9fe6c93d496b","block_type":"box","text":"Guidelines (as from time to time amended, the “Guidelines”) governing proxy voting by active and fixed income","page_number":187,"box":{"x":102,"y":476,"width":788,"height":11}},{"id":"b35225be-7494-43bb-9411-e8537236e404","block_type":"box","text":"index Funds managed by BlackRock. The Guidelines include “climate and decarbonization” guidelines which","page_number":187,"box":{"x":102,"y":491,"width":766,"height":12}},{"id":"cbe4580d-cf2d-492d-aa46-9ad7395f2315","block_type":"box","text":"apply to the Funds listed in Appendix A, if any.","page_number":187,"box":{"x":102,"y":506,"width":325,"height":12}},{"id":"d2b162cf-2e66-4a37-99b7-cfea53747086","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":187,"box":{"x":135,"y":529,"width":751,"height":11}},{"id":"e815ba2f-1fbd-4a47-bf6d-ca14e78560c5","block_type":"box","text":"respect of securities held by each such Fund (or may refrain from voting) in accordance with the Guidelines.","page_number":187,"box":{"x":102,"y":544,"width":765,"height":11}},{"id":"1e59cfbf-78aa-4fbe-97c9-d50a9dbaeb1c","block_type":"box","text":"Conflicts Management","page_number":187,"box":{"x":101,"y":567,"width":165,"height":11}},{"id":"55ad17cb-129f-4da9-b895-18fceb8bd630","block_type":"box","text":"BlackRock Active Investment Stewardship (“BAIS”) maintains policies and procedures that seek to prevent","page_number":187,"box":{"x":135,"y":590,"width":758,"height":11}},{"id":"2996b5ba-d73e-4f01-bc60-e3b7c0ae63c1","block_type":"box","text":"undue influence on BlackRock’s proxy voting activity and to mitigate material conflicts of interest in the exercise","page_number":187,"box":{"x":102,"y":605,"width":797,"height":11}},{"id":"d977fe84-d0cd-4fc5-b0a6-42f3bcae60f9","block_type":"box","text":"of proxy voting responsibilities. Potential material conflicts, and the resultant potential for undue influence, might","page_number":187,"box":{"x":102,"y":620,"width":805,"height":11}},{"id":"c04f403f-3f87-47f8-b3e8-c63432d6db97","block_type":"box","text":"be due to a relationship between the investee company (or any shareholder proponent or dissident shareholder)","page_number":187,"box":{"x":102,"y":635,"width":797,"height":11}},{"id":"e132b69b-7614-44c2-b3b3-1cd96d4538f8","block_type":"box","text":"and BlackRock, BlackRock’s affiliates or employees, or a Fund or a Fund’s affiliates. BlackRock has taken","page_number":187,"box":{"x":102,"y":650,"width":756,"height":11}},{"id":"eed9835a-d9b6-46a4-84ba-337850a24111","block_type":"box","text":"certain steps to mitigate potential conflicts, which are outlined in detail in the Guidelines. In mitigating conflicts,","page_number":187,"box":{"x":101,"y":665,"width":800,"height":11}},{"id":"77fcf39a-5981-4e85-baf8-3701401895da","block_type":"box","text":"BAIS will adhere to the Guidelines.","page_number":187,"box":{"x":102,"y":680,"width":244,"height":9}},{"id":"3ff1aeb5-1b8f-4bb7-b1a8-10b4031f9e03","block_type":"box","text":"In certain instances, BAIS will engage an independent third-party voting service provider to make proxy","page_number":187,"box":{"x":135,"y":703,"width":731,"height":11}},{"id":"274bcd2a-059c-4beb-b939-346fec4402ca","block_type":"box","text":"voting recommendations as a further safeguard to avoid potential conflicts of interest, to satisfy regulatory","page_number":187,"box":{"x":101,"y":718,"width":763,"height":11}},{"id":"1d3c0049-4b97-4e3f-a7c4-b6a9cc3b5bd7","block_type":"box","text":"compliance requirements, or as may be otherwise required by applicable law.","page_number":187,"box":{"x":101,"y":733,"width":550,"height":11}},{"id":"73a1b547-7c6d-4ae5-a51c-f31425861d71","block_type":"box","text":"With respect to the relationship between securities lending and proxy voting, shares on loan cannot be voted","page_number":187,"box":{"x":134,"y":756,"width":774,"height":11}},{"id":"0cf331bc-89da-400a-b155-8f2165de5f7b","block_type":"box","text":"and BlackRock may determine to recall them for voting, as guided by BlackRock’s fiduciary responsibility to act","page_number":187,"box":{"x":102,"y":771,"width":791,"height":11}},{"id":"f89b20b9-24f8-4eb0-bcbf-306221275b91","block_type":"box","text":"in clients’ financial interests. The Guidelines set forth BlackRock’s approach to recalling securities on loan in","page_number":187,"box":{"x":102,"y":786,"width":778,"height":11}},{"id":"77784655-2dcc-4c3e-b2e3-f461fd7ae08d","block_type":"box","text":"connection with proxy voting.","page_number":187,"box":{"x":101,"y":801,"width":203,"height":11}},{"id":"2f73f2c2-8eaf-4c3a-9c06-3440fc0b431a","block_type":"box","text":"Reports to the Board","page_number":187,"box":{"x":102,"y":824,"width":153,"height":11}},{"id":"83a8d25c-cc90-4e1d-8d36-0d48af3377ba","block_type":"box","text":"BlackRock will report on an annual basis to the Directors on (1) a summary of the proxy voting process as","page_number":187,"box":{"x":135,"y":846,"width":755,"height":12}},{"id":"f6ed1e15-ba7c-4f10-89f5-6038876a2b14","block_type":"box","text":"applicable to the Funds covered by this policy in the preceding year together with a representation that all votes","page_number":187,"box":{"x":102,"y":862,"width":794,"height":11}},{"id":"680ef278-41bd-43a8-86fd-616333da0c6c","block_type":"box","text":"were in accordance with the Guidelines and (2) any material changes to the Guidelines, including material","page_number":187,"box":{"x":101,"y":877,"width":753,"height":11}},{"id":"76d4797c-f7c7-49d5-95c1-2a06b20ade71","block_type":"box","text":"changes to conflicts management practices, that have not previously been reported.","page_number":187,"box":{"x":101,"y":892,"width":600,"height":11}},{"id":"eb3ae80d-f371-4199-8ae7-c3ced16f2d27","block_type":"box","text":"Open-End Active and Fixed Income Index Fund Proxy Voting Policy","page_number":187,"box":{"x":449,"y":45,"width":461,"height":11}},{"id":"c28693b0-ed38-4d77-89e1-91a8064548f7","block_type":"box","text":"BlackRock","page_number":187,"box":{"x":69,"y":943,"width":78,"height":9}},{"id":"2930b002-e4bf-4a91-bf58-2962e1c76f3e","block_type":"box","text":"Public Page 1 of 2","page_number":187,"box":{"x":469,"y":943,"width":440,"height":11}},{"id":"902914d9-a9e7-42bc-a0db-8cd9099e5074","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":187,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"28d8d2bf-e1aa-4fc1-ac8f-bb608a365137","block_type":"box","text":"Appendix A","page_number":188,"box":{"x":101,"y":75,"width":82,"height":11}},{"id":"47ce84dc-d243-43b7-9198-553af9c9d947","block_type":"box","text":"BlackRock U.S. Carbon Transition Readiness ETF","page_number":188,"box":{"x":135,"y":98,"width":347,"height":9}},{"id":"a6c0717c-39c4-4098-90bc-4895880cf705","block_type":"box","text":"BlackRock World ex U.S. Carbon Transition Readiness ETF","page_number":188,"box":{"x":135,"y":120,"width":413,"height":9}},{"id":"231a51ad-1f66-4584-b7c4-6ca0ff1f18ad","block_type":"box","text":"Open-End Active and Fixed Income Index Fund Proxy Voting Policy","page_number":188,"box":{"x":449,"y":45,"width":461,"height":11}},{"id":"c354a5a9-1071-44ee-b468-4d0dd9d6d87c","block_type":"box","text":"BlackRock","page_number":188,"box":{"x":69,"y":943,"width":78,"height":9}},{"id":"e1aa945a-217f-41e5-8a44-59560c77ede9","block_type":"box","text":"Public Page 2 of 2","page_number":188,"box":{"x":469,"y":943,"width":440,"height":11}},{"id":"9f32dbd5-98d6-4ec6-968e-f36a579b2b46","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":188,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"561ec020-da47-4820-9573-aa8beca03b63","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":189,"box":{"x":334,"y":45,"width":311,"height":11}},{"id":"56ee11cb-5d9e-4cde-931b-a3e80fe940c0","block_type":"box","text":"Global Engagement and Voting Guidelines","page_number":189,"box":{"x":337,"y":67,"width":304,"height":11}},{"id":"931fe990-47db-4eb6-8d30-6a8618e601d6","block_type":"box","text":"Effective as of January 2026","page_number":189,"box":{"x":385,"y":90,"width":208,"height":11}},{"id":"2d224049-0388-4135-bafd-252b2bc65a31","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":189,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"80b3e49d-a4ca-48f5-9d35-7d740ea0e82e","block_type":"box","text":"TABLE OF CONTENTS","page_number":190,"box":{"x":411,"y":45,"width":155,"height":9}},{"id":"8eefa43d-bdba-4f47-b5e3-f9b4802a07c3","block_type":"box","text":"Page","page_number":190,"box":{"x":876,"y":65,"width":28,"height":9}},{"id":"2421824b-bb85-4b5a-a7d6-745dfebb1194","block_type":"box","text":"OVERVIEW","page_number":190,"box":{"x":74,"y":84,"width":79,"height":9}},{"id":"5982dd4e-2a53-44c0-9561-65cf61c4a077","block_type":"box","text":"....................................................................................... 4","page_number":190,"box":{"x":161,"y":85,"width":743,"height":8}},{"id":"4bb612b5-51f3-4dff-aaa8-28490536b9b4","block_type":"box","text":"INTRODUCTION TO BLACKROCK","page_number":190,"box":{"x":74,"y":101,"width":235,"height":9}},{"id":"b91e3634-9da1-4880-bb83-4ffe4e083efd","block_type":"box","text":".................................................................... 5","page_number":190,"box":{"x":316,"y":101,"width":588,"height":9}},{"id":"78116a0e-0b70-4213-92b5-c52e677450cd","block_type":"box","text":"ABOUT BLACKROCK ACTIVE INVESTMENT STEWARDSHIP","page_number":190,"box":{"x":73,"y":117,"width":424,"height":9}},{"id":"a0de9507-10f9-4eb4-b66f-5f13abf4e772","block_type":"box","text":"............................................. 5","page_number":190,"box":{"x":504,"y":117,"width":400,"height":9}},{"id":"aee0b69e-7811-4c01-9101-167bf156f897","block_type":"box","text":"OUR APPROACH TO STEWARDSHIP WITHIN ACTIVE EQUITIES","page_number":190,"box":{"x":74,"y":134,"width":451,"height":10}},{"id":"a2505c6f-28d2-48ba-b4fb-1686bcec788c","block_type":"box","text":".......................................... 5","page_number":190,"box":{"x":528,"y":134,"width":376,"height":8}},{"id":"15e97c77-97b0-4be2-8ae5-dcde2d14d736","block_type":"box","text":"OUR APPROACH TO STEWARDSHIP WITHIN FIXED INCOME","page_number":190,"box":{"x":74,"y":150,"width":433,"height":9}},{"id":"0b810e15-9ef6-45d4-b62f-1962b8bb615d","block_type":"box","text":"............................................ 6","page_number":190,"box":{"x":512,"y":150,"width":392,"height":9}},{"id":"cbe1fa13-e1b0-47cc-9ed6-d3464bceab8c","block_type":"box","text":"BOARDS OF DIRECTORS","page_number":190,"box":{"x":74,"y":166,"width":178,"height":9}},{"id":"c4bc44f1-0434-4967-9d71-ab0d3b9540e6","block_type":"box","text":"........................................................................... 7","page_number":190,"box":{"x":259,"y":166,"width":645,"height":9}},{"id":"16ae7857-fe89-42ed-9e5c-8d24c11dbce5","block_type":"box","text":"EXECUTIVE COMPENSATION","page_number":190,"box":{"x":74,"y":183,"width":207,"height":9}},{"id":"a5d31c13-77b6-4ce0-9450-cfeb55e0476b","block_type":"box","text":"....................................................................... 9","page_number":190,"box":{"x":292,"y":183,"width":612,"height":9}},{"id":"27b5039d-bf19-4e0b-9607-d962ee15cbbc","block_type":"box","text":"NON-EXECUTIVE DIRECTOR COMPENSATION","page_number":190,"box":{"x":74,"y":199,"width":325,"height":9}},{"id":"fe2e7988-f016-4726-be95-3ed6a0419aad","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10","page_number":190,"box":{"x":406,"y":199,"width":498,"height":9}},{"id":"7537aed1-a106-469c-b6d6-301b47f7fc8f","block_type":"box","text":"CAPITAL STRUCTURE","page_number":190,"box":{"x":74,"y":215,"width":156,"height":9}},{"id":"905594d9-202e-4a32-a0d6-cb5c618e9b3e","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10","page_number":190,"box":{"x":234,"y":215,"width":670,"height":9}},{"id":"1baeb371-f20e-429f-9218-25df0c16a23b","block_type":"box","text":"TRANSACTIONS AND SPECIAL SITUATIONS","page_number":190,"box":{"x":73,"y":232,"width":315,"height":9}},{"id":"235c8092-89b2-4ffd-9ebf-6403a5e0854e","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11","page_number":190,"box":{"x":398,"y":232,"width":506,"height":9}},{"id":"edae7fc8-a4a9-4907-a4df-c82733868af0","block_type":"box","text":"CORPORATE REPORTING, RISK MANAGEMENT AND AUDIT","page_number":190,"box":{"x":74,"y":248,"width":430,"height":11}},{"id":"a70e3a3d-da28-4094-b273-384afe04518b","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11","page_number":190,"box":{"x":512,"y":248,"width":392,"height":9}},{"id":"dad229ef-036c-4553-b76b-1e342f2529b2","block_type":"box","text":"SHAREHOLDER RIGHTS AND PROTECTIONS","page_number":190,"box":{"x":73,"y":265,"width":319,"height":8}},{"id":"e6cb50a2-9963-4ea4-ae7d-c733b6e0d8b0","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12","page_number":190,"box":{"x":398,"y":265,"width":506,"height":8}},{"id":"6b009490-f074-4dda-ab46-149a70485b50","block_type":"box","text":"SHAREHOLDER PROPOSALS","page_number":190,"box":{"x":73,"y":281,"width":207,"height":9}},{"id":"149ee9e3-ca6b-41e4-ae7f-8239673597f9","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13","page_number":190,"box":{"x":283,"y":281,"width":621,"height":9}},{"id":"aa882128-ff1b-40fa-bcdd-2968e304f5fd","block_type":"box","text":"CORPORATE POLITICAL ACTIVITIES","page_number":190,"box":{"x":74,"y":297,"width":259,"height":9}},{"id":"2c60b912-7056-418c-8bf4-f8679cc700f4","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13","page_number":190,"box":{"x":340,"y":297,"width":564,"height":9}},{"id":"80fc1087-c699-4149-b770-8d708400b89e","block_type":"box","text":"MATERIAL SUSTAINABILITY- RELATED RISKS AND OPPORTUNITIES","page_number":190,"box":{"x":74,"y":314,"width":489,"height":9}},{"id":"e5676a26-6a50-4cf4-bc96-d12b2de90316","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15","page_number":190,"box":{"x":569,"y":314,"width":335,"height":9}},{"id":"f84ff0ab-11fe-4be6-b3dd-c8f144976142","block_type":"box","text":"KEY STAKEHOLDERS","page_number":190,"box":{"x":74,"y":330,"width":151,"height":9}},{"id":"2574ddd9-102a-4cf1-bac8-ce2ab0f61b59","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15","page_number":190,"box":{"x":234,"y":330,"width":670,"height":9}},{"id":"71551c76-a297-4e37-a341-c214f7831da9","block_type":"box","text":"CLIMATE AND DECARBONIZATION INVESTMENT OBJECTIVES","page_number":190,"box":{"x":74,"y":346,"width":448,"height":9}},{"id":"8986f689-5f63-4e12-8fcb-f79419383e9d","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15","page_number":190,"box":{"x":528,"y":347,"width":376,"height":8}},{"id":"2daf5e9b-8aa8-434d-9fb8-aafa8511f701","block_type":"box","text":"APPENDIX 1: HOW WE FULFILL AND OVERSEE OUR INVESTMENT STEWARDSHIP RESPONSIBILITIES FOR","page_number":190,"box":{"x":73,"y":363,"width":771,"height":9}},{"id":"5999b086-d1c8-47a0-9af1-a37958e3951b","block_type":"box","text":"NON-INDEX EQUITY INVESTMENT STRATEGIES","page_number":190,"box":{"x":74,"y":378,"width":339,"height":11}},{"id":"05900fcc-47cd-45b7-8bb9-c38028b872ec","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17","page_number":190,"box":{"x":422,"y":378,"width":482,"height":9}},{"id":"d611021f-8d13-45be-9b53-ce0aff210980","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":190,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"be030cfb-0fb3-4e74-87f1-3e94873e4411","block_type":"box","text":"Global Engagement and Voting Guidelines | 2","page_number":190,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"898d9356-4a97-4dad-b6d5-5feb406b672c","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":190,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8d5bb76e-0cfc-4ec0-893a-35fbed96f203","block_type":"box","text":"OVERVIEW","page_number":191,"box":{"x":450,"y":45,"width":79,"height":9}},{"id":"ea8e62c9-63b3-4f6d-9536-db7fcc836799","block_type":"box","text":"This document provides high level guidance on how BlackRock Active Investment Stewardship (BAIS) views","page_number":191,"box":{"x":101,"y":67,"width":760,"height":12}},{"id":"559f5766-9640-47b9-af61-8ac7647f6eff","block_type":"box","text":"corporate governance matters that are commonly put to a shareholder vote, or on which investors engage with","page_number":191,"box":{"x":69,"y":83,"width":785,"height":11}},{"id":"05e747e6-0a1c-4fa9-bf00-08ec2b503d8a","block_type":"box","text":"issuers.","page_number":191,"box":{"x":70,"y":98,"width":54,"height":9}},{"id":"2ac48250-5bca-419b-b4fe-fc898745b0b9","block_type":"box","text":"1","page_number":191,"box":{"x":131,"y":94,"width":4,"height":4}},{"id":"c7c04f7b-0685-4ed3-830b-cdbae316f086","block_type":"box","text":"BAIS works in partnership with BlackRock’s investment teams, excluding index equity","page_number":191,"box":{"x":141,"y":98,"width":606,"height":11}},{"id":"70957933-1ba6-4c79-912d-d29eda500b70","block_type":"box","text":"2","page_number":191,"box":{"x":747,"y":98,"width":4,"height":4}},{"id":"fb309da9-84a4-4b55-a119-4fba2306a5e3","block_type":"box","text":", providing expertise","page_number":191,"box":{"x":753,"y":98,"width":143,"height":11}},{"id":"74249cfe-176d-4dc6-b07c-77893f6226c0","block_type":"box","text":"on investment stewardship and engaging with companies alongside and on behalf of those teams when appropriate.","page_number":191,"box":{"x":69,"y":113,"width":828,"height":11}},{"id":"44c545cc-d8b3-48cf-b22f-63874436ccb8","block_type":"box","text":"The team is responsible for establishing voting guidelines for the active equity platform, providing vote","page_number":191,"box":{"x":68,"y":128,"width":729,"height":11}},{"id":"45ee0242-2c22-4c39-bbe5-811121e70f13","block_type":"box","text":"recommendations and operationalizing voting decisions. The guidance informs the voting recommendations BAIS","page_number":191,"box":{"x":69,"y":143,"width":803,"height":11}},{"id":"b53621d1-e109-4e1b-8e8e-84f8c66032de","block_type":"box","text":"makes to BlackRock’s active portfolio managers. It applies to active equity holdings in BlackRock’s fundamental","page_number":191,"box":{"x":69,"y":158,"width":800,"height":11}},{"id":"787d18f0-5434-4668-ac38-34d0f800d2b3","block_type":"box","text":"equity, systematic equity and multi-asset solutions strategies. It also may apply to holdings in BlackRock’s index and","page_number":191,"box":{"x":69,"y":173,"width":831,"height":11}},{"id":"f24ac9df-e1be-441b-a378-9e4a278dfd3d","block_type":"box","text":"active fixed income strategies, to the extent those strategies hold voting securities or conduct issuer engagements.","page_number":191,"box":{"x":69,"y":188,"width":823,"height":12}},{"id":"efe30d2c-754f-4caa-a467-dbf7d5ae351d","block_type":"box","text":"The guidelines are not prescriptive as active portfolio managers have discretion as to how they integrate these","page_number":191,"box":{"x":68,"y":203,"width":789,"height":12}},{"id":"8e2b9b5d-437d-4998-a2a6-2add94bccb69","block_type":"box","text":"guidelines within their investment processes in light of their clients’ or funds’ investment objectives. There are","page_number":191,"box":{"x":68,"y":218,"width":788,"height":12}},{"id":"c5f09e6f-6be8-4e6f-b279-f04de7b2898a","block_type":"box","text":"separate, independently developed principles and voting policies that are applied to BlackRock’s index equity","page_number":191,"box":{"x":69,"y":234,"width":778,"height":11}},{"id":"078a9041-b470-459e-9bb3-ca8ad38d2886","block_type":"box","text":"investments by a distinct and independent function, BlackRock Investment Stewardship.","page_number":191,"box":{"x":70,"y":249,"width":627,"height":11}},{"id":"89f38fb4-299d-4ab8-a69f-da964a7f03d7","block_type":"box","text":"1","page_number":191,"box":{"x":69,"y":294,"width":4,"height":4}},{"id":"9933c5d6-b247-43b5-94c7-edca4fb679db","block_type":"box","text":"This document includes BAIS’ benchmark policy, which covers nearly all active equity holdings in BlackRock’s","page_number":191,"box":{"x":78,"y":293,"width":777,"height":11}},{"id":"0a644522-ed4f-4433-a042-5df0dde4cb49","block_type":"box","text":"fundamental equity, systematic equity and multi-asset solutions strategies. The benchmark policy also may apply to","page_number":191,"box":{"x":68,"y":308,"width":823,"height":11}},{"id":"a917d0db-c66d-4d2f-aeae-114f276859c6","block_type":"box","text":"holdings in BlackRock’s index and active fixed income strategies, to the extent those strategies hold voting securities","page_number":191,"box":{"x":69,"y":323,"width":837,"height":12}},{"id":"a621a4ec-5c7e-4d66-a15c-2b41af6c57d1","block_type":"box","text":"or conduct issuer engagements. This document also includes BAIS’ decarbonization policy, which covers holdings in","page_number":191,"box":{"x":69,"y":339,"width":824,"height":11}},{"id":"b6b016e1-ce89-4f66-851a-f69187b003dd","block_type":"box","text":"BlackRock active funds that have climate and decarbonization objectives in addition to financial objectives.","page_number":191,"box":{"x":70,"y":354,"width":759,"height":11}},{"id":"b669e90e-5878-4d10-bd11-6ff6179f969a","block_type":"box","text":"2","page_number":191,"box":{"x":69,"y":372,"width":4,"height":4}},{"id":"7b9e8f6f-8549-4ed8-897f-267326873b8f","block_type":"box","text":"BlackRock segmented active and index equity investment functions, including stewardship, in January 2025 as part","page_number":191,"box":{"x":79,"y":371,"width":825,"height":11}},{"id":"14b1c600-95a4-4313-bce1-b2eae8496818","block_type":"box","text":"of a strategic initiative to unlock the full breadth of the firm’s active and private markets capabilities for clients. As a","page_number":191,"box":{"x":69,"y":386,"width":830,"height":12}},{"id":"35431b45-bcd7-4550-9bd1-f4e7258b2f81","block_type":"box","text":"result, there are two stewardship teams, which operate independently of one another and have separate voting","page_number":191,"box":{"x":69,"y":401,"width":792,"height":12}},{"id":"1426a366-cb7d-4a9c-af21-452b3a103457","block_type":"box","text":"policies.","page_number":191,"box":{"x":70,"y":417,"width":56,"height":11}},{"id":"d175bef4-ecc2-46a9-9daf-aca7bab21be1","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":191,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"e072c848-c26b-4d39-b7d0-60da14a0a4e8","block_type":"box","text":"Global Engagement and Voting Guidelines | 4","page_number":191,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"7b245f5d-b831-4802-a823-5eda581a2671","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":191,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"38a17143-44f3-4562-b376-6ca74bdc187d","block_type":"box","text":"INTRODUCTION TO BLACKROCK","page_number":192,"box":{"x":372,"y":45,"width":235,"height":9}},{"id":"1a810ae8-c7a8-4182-b438-0c2499e80053","block_type":"box","text":"BlackRock’s mission is to help more people invest better. The money BlackRock manages is not its own — it","page_number":192,"box":{"x":102,"y":64,"width":777,"height":11}},{"id":"9d467c37-c156-4df5-abcf-17b235baf600","block_type":"box","text":"belongs to BlackRock’s clients, many of whom make their own asset allocation and portfolio construction decisions.","page_number":192,"box":{"x":69,"y":78,"width":828,"height":12}},{"id":"26428ba3-ed12-49cf-a714-1165bb5cd618","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":192,"box":{"x":68,"y":93,"width":835,"height":11}},{"id":"5e7fd883-9791-49de-92ea-a2ea08f60901","block_type":"box","text":"by understanding clients’ long-term investment objectives and offering choice on how and where they wish to invest","page_number":192,"box":{"x":69,"y":108,"width":823,"height":11}},{"id":"5735e2da-17bb-43ae-9ddc-845b4bebac35","block_type":"box","text":"their money. BlackRock then helps clients seek the best risk-adjusted returns based on those choices, underpinning","page_number":192,"box":{"x":68,"y":123,"width":830,"height":11}},{"id":"126c3267-561d-4b85-939b-bb9454204ae3","block_type":"box","text":"this work with research, data and analytics.","page_number":192,"box":{"x":68,"y":138,"width":309,"height":11}},{"id":"c0673ac0-c618-40a9-b5ce-7625f5724631","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":192,"box":{"x":101,"y":156,"width":796,"height":12}},{"id":"df3b01fc-bc90-4d05-bd28-f99048f2b959","block_type":"box","text":"stewards of our clients’ assets, we engage with companies to discuss the corporate governance and business","page_number":192,"box":{"x":69,"y":171,"width":787,"height":12}},{"id":"d2d2378f-0bba-4cc4-9147-f0a9b3cb9b11","block_type":"box","text":"practices that, in our experience, support companies in delivering durable, risk-adjusted financial returns over time.","page_number":192,"box":{"x":70,"y":186,"width":820,"height":12}},{"id":"0c76d608-be5b-4249-88d6-045764c24d65","block_type":"box","text":"We are committed to building strong relationships through constructive, ongoing dialogue with the boards and","page_number":192,"box":{"x":68,"y":201,"width":782,"height":11}},{"id":"3c93183f-9962-4b4c-8cd0-7f816626599a","block_type":"box","text":"executive management of the companies in which our clients are invested.","page_number":192,"box":{"x":69,"y":216,"width":531,"height":11}},{"id":"42a9cc29-9ffd-4fa7-a5e3-e63e4ce67704","block_type":"box","text":"ABOUT BLACKROCK ACTIVE INVESTMENT STEWARDSHIP","page_number":192,"box":{"x":277,"y":246,"width":424,"height":9}},{"id":"010882be-2ce4-443e-9638-bf865cb23e07","block_type":"box","text":"BlackRock Active Investment Stewardship (BAIS) is a specialist team within the Portfolio Management Group and","page_number":192,"box":{"x":102,"y":265,"width":804,"height":11}},{"id":"59523dd4-8dbe-4da2-93da-9d09a2277431","block_type":"box","text":"manages BlackRock’s stewardship engagement and voting on behalf of clients invested in active strategies globally.","page_number":192,"box":{"x":69,"y":280,"width":826,"height":11}},{"id":"2c2bace4-68ac-4d13-8e94-e62040bc8f28","block_type":"box","text":"BAIS is also responsible for engagement with issuers in index fixed income strategies, where appropriate. Our","page_number":192,"box":{"x":70,"y":295,"width":783,"height":11}},{"id":"de47c4ed-e9fe-436f-b583-8e08336c2541","block_type":"box","text":"activities are informed by these Global Engagement and Voting Guidelines (the “Guidelines”) and insights from active","page_number":192,"box":{"x":69,"y":309,"width":834,"height":12}},{"id":"3c10a0cf-b380-4842-9d23-d5f6c7526116","block_type":"box","text":"investment analysts and portfolio managers, with whom we work closely in engaging companies and voting at","page_number":192,"box":{"x":70,"y":324,"width":779,"height":12}},{"id":"3367ccc6-ff88-4868-a93d-5474e881ed03","block_type":"box","text":"shareholder meetings.","page_number":192,"box":{"x":69,"y":339,"width":158,"height":11}},{"id":"ac6ddd75-c92e-4ff3-979c-0283903f7bc9","block_type":"box","text":"Engagement with public companies is the foundation of our approach to stewardship within fundamental active","page_number":192,"box":{"x":102,"y":358,"width":789,"height":11}},{"id":"a2f4c935-3d19-4a9a-9cb6-6244135b1667","block_type":"box","text":"investing.","page_number":192,"box":{"x":70,"y":373,"width":65,"height":11}},{"id":"a9fe7149-dde6-45d0-8f32-7f8b3cf89c6e","block_type":"box","text":"3","page_number":192,"box":{"x":137,"y":373,"width":4,"height":5}},{"id":"6ae83134-2728-496d-9512-950921f7285b","block_type":"box","text":"Through direct dialogue with company leadership, we seek to understand their businesses and how they","page_number":192,"box":{"x":146,"y":373,"width":744,"height":11}},{"id":"bd714182-c71a-40b6-813e-89df34439854","block_type":"box","text":"manage risks and opportunities to deliver durable, risk-adjusted financial returns. Portfolio managers and","page_number":192,"box":{"x":69,"y":387,"width":751,"height":12}},{"id":"90768d1f-a221-4605-9deb-3f659b43ffab","block_type":"box","text":"stewardship specialists may engage jointly or independently on material corporate governance matters. Our","page_number":192,"box":{"x":69,"y":402,"width":765,"height":12}},{"id":"b3fdfd32-ff8a-47ea-93fb-e727d69a3a90","block_type":"box","text":"discussions focus on topics relevant to a company’s success over time, including governance and leadership,","page_number":192,"box":{"x":69,"y":417,"width":782,"height":12}},{"id":"425573e8-0b1a-4f5e-b7dd-57604c9a7c20","block_type":"box","text":"corporate strategy, capital structure and financial performance, operations and material sustainability-related risks,","page_number":192,"box":{"x":69,"y":432,"width":820,"height":11}},{"id":"2bcd66e9-2f09-4e9e-b999-0cb1fef504d0","block_type":"box","text":"as well as macro-economic, geopolitical and sector dynamics. We aim to be constructive investors and are generally","page_number":192,"box":{"x":69,"y":447,"width":828,"height":11}},{"id":"bb6b9791-7a1f-42c2-98ac-8fe032998be8","block_type":"box","text":"supportive of management teams that have a track record of financial value creation. We aim to build and maintain","page_number":192,"box":{"x":69,"y":462,"width":821,"height":11}},{"id":"a6d9fa36-e2e0-4e88-8b28-9c21a35c03e5","block_type":"box","text":"strong relationships with company leadership based on open dialogue and mutual respect.","page_number":192,"box":{"x":69,"y":477,"width":645,"height":11}},{"id":"1250a0a5-9856-446d-8ce9-ea18a55926ae","block_type":"box","text":"Different active equity strategies may implement these voting guidelines differently, as a result of the latitude","page_number":192,"box":{"x":102,"y":495,"width":780,"height":12}},{"id":"2e3325a8-cd3d-44dc-bd47-22252d47de47","block_type":"box","text":"each portfolio manager has to make independent voting decisions on their holdings. For example, BAIS will generally","page_number":192,"box":{"x":69,"y":510,"width":831,"height":11}},{"id":"9fb96432-4bde-4004-99ff-eed690601785","block_type":"box","text":"vote the holdings in Systematic Active Equity portfolios in accordance with these guidelines. We provide voting","page_number":192,"box":{"x":68,"y":525,"width":787,"height":11}},{"id":"69e92eed-4cd1-484d-a533-45d11b9c3312","block_type":"box","text":"recommendations to fundamental equity portfolio managers, who may determine to vote differently based on each","page_number":192,"box":{"x":69,"y":540,"width":816,"height":11}},{"id":"5501b977-1a78-454e-9e68-61fb6ae8d71b","block_type":"box","text":"portfolio’s investment objectives and strategy.","page_number":192,"box":{"x":70,"y":555,"width":327,"height":11}},{"id":"316ef3d9-2403-4cfb-afb1-917ad5dbc5f4","block_type":"box","text":"These guidelines discuss BAIS’ views on corporate governance topics on which we may engage with","page_number":192,"box":{"x":101,"y":574,"width":711,"height":11}},{"id":"de5c96a2-b465-4159-b663-68c38a5f8d46","block_type":"box","text":"management teams and board directors","page_number":192,"box":{"x":69,"y":589,"width":285,"height":11}},{"id":"9a58751d-b575-43ee-b2f4-9b0458dddd34","block_type":"box","text":"4","page_number":192,"box":{"x":355,"y":589,"width":5,"height":4}},{"id":"fd9b0dd1-432a-4723-9723-5e144e4e301f","block_type":"box","text":"and on matters that routinely come to a shareholder vote. We recognize that","page_number":192,"box":{"x":366,"y":589,"width":544,"height":11}},{"id":"17aaae65-9329-4187-b3ca-a8bda1d57d2b","block_type":"box","text":"accepted corporate governance norms can differ across markets, and believe these guidelines represent globally","page_number":192,"box":{"x":69,"y":603,"width":807,"height":11}},{"id":"9989c2a9-a26d-447e-be7c-3b2ddffd780b","block_type":"box","text":"applicable elements of governance that support a company’s ability to manage material risks and opportunities and","page_number":192,"box":{"x":69,"y":618,"width":827,"height":11}},{"id":"5c935615-dcad-40be-9355-47eb9c53a348","block_type":"box","text":"deliver financial returns to investors. Generally, we believe companies should observe accepted corporate governance","page_number":192,"box":{"x":69,"y":633,"width":840,"height":11}},{"id":"3260a1ed-852d-46d7-a588-4a990cb5e42d","block_type":"box","text":"norms within their local markets or, particularly in markets without well-established norms, aspire to widely","page_number":192,"box":{"x":69,"y":648,"width":762,"height":11}},{"id":"04c5ee3e-110b-4df3-aa26-c0715fe650b2","block_type":"box","text":"recognized international best practices. As one of many minority shareholders, BlackRock cannot – and does not try","page_number":192,"box":{"x":69,"y":663,"width":827,"height":11}},{"id":"a91bf75a-2dba-461f-a0d0-1d967e39abaa","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":192,"box":{"x":68,"y":678,"width":837,"height":11}},{"id":"3c330acd-db82-4eec-b4a6-49eda5e2bb79","block_type":"box","text":"their approach to corporate governance best aligns with the financial interests of their investors.","page_number":192,"box":{"x":68,"y":692,"width":687,"height":12}},{"id":"84cd06e4-76bc-4a5f-910b-9dc767de495b","block_type":"box","text":"OUR APPROACH TO STEWARDSHIP WITHIN ACTIVE EQUITIES","page_number":192,"box":{"x":263,"y":722,"width":451,"height":11}},{"id":"92f795dd-dc47-4b6d-b497-096c8a1dd23b","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":192,"box":{"x":101,"y":741,"width":753,"height":12}},{"id":"bd7b19f3-1cba-4666-a593-b5eb193305a8","block_type":"box","text":"governance. The voting rights attached to clients’ holdings are an important mechanism for investors to express","page_number":192,"box":{"x":68,"y":756,"width":801,"height":11}},{"id":"4e74555f-975d-46f8-9060-b49fe1f75960","block_type":"box","text":"support for, or concern about, a company’s performance. As a fiduciary, BlackRock is legally required to make proxy","page_number":192,"box":{"x":69,"y":771,"width":829,"height":11}},{"id":"418ffe1a-061a-4f5d-8608-f6fa9a004158","block_type":"box","text":"voting determinations, on behalf of clients who have delegated voting authority to us, in a manner consistent with","page_number":192,"box":{"x":68,"y":786,"width":809,"height":11}},{"id":"d8769eed-aa0e-4f8c-8924-ff680d3d8216","block_type":"box","text":"BlackRock’s contractual arrangements with clients and funds.","page_number":192,"box":{"x":70,"y":801,"width":438,"height":11}},{"id":"2cf12984-e3fa-4d20-8eb3-8a6cc8e4436d","block_type":"box","text":"3","page_number":192,"box":{"x":69,"y":830,"width":4,"height":5}},{"id":"2e6743fe-4aa6-4b0a-b970-93da7407661c","block_type":"box","text":"On February 11, 2025, the U.S. Securities and Exchange Commission (SEC) staff issued updated guidance for","page_number":192,"box":{"x":79,"y":830,"width":790,"height":11}},{"id":"1f27b0ef-38e7-4905-ba7c-2b238fb4959c","block_type":"box","text":"shareholders to maintain their eligibility to report their beneficial ownership under Schedule 13G of the Exchange Act.","page_number":192,"box":{"x":69,"y":845,"width":836,"height":11}},{"id":"4e3ec4d1-2d47-45a0-a041-044cb994ceb0","block_type":"box","text":"We comply fully with these requirements and do not engage with portfolio companies for the purpose, or with the","page_number":192,"box":{"x":68,"y":860,"width":805,"height":11}},{"id":"04b73472-070a-4165-a868-a106528f958a","block_type":"box","text":"effect, of changing or influencing control of the company.","page_number":192,"box":{"x":69,"y":875,"width":403,"height":12}},{"id":"88656cbe-e951-4640-bdd3-90d6a7d34ad8","block_type":"box","text":"4","page_number":192,"box":{"x":69,"y":893,"width":4,"height":5}},{"id":"a97aa522-4550-4e64-875e-0a97145b35c6","block_type":"box","text":"References to the board, board directors or non-executive directors should be understood to include supervisory","page_number":192,"box":{"x":79,"y":893,"width":801,"height":11}},{"id":"d81e5db0-0932-490b-ad4f-326a342b24a5","block_type":"box","text":"boards and their members, where relevant.","page_number":192,"box":{"x":69,"y":908,"width":306,"height":11}},{"id":"94f8013e-128f-46d1-a44d-edc61d262331","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":192,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"427a06fb-eee4-4922-a383-6fe854c46980","block_type":"box","text":"Global Engagement and Voting Guidelines | 5","page_number":192,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"57b67406-7cb4-40aa-8096-f73d4feae3b1","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":192,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ea35d1c0-d380-453b-9016-a72fbd6cf93b","block_type":"box","text":"In general, we tend to support the recommendations of the board of directors and management. As indicated","page_number":193,"box":{"x":102,"y":45,"width":778,"height":11}},{"id":"23cafce3-64b5-4c1e-b458-793dd04390d6","block_type":"box","text":"below, we may vote against management recommendations when we have concerns about how companies are","page_number":193,"box":{"x":69,"y":60,"width":788,"height":11}},{"id":"d3a704b6-41ad-4dba-8ebe-10c18978cf60","block_type":"box","text":"serving the financial interests of our clients as their shareholders. BAIS takes a globally consistent approach to","page_number":193,"box":{"x":69,"y":74,"width":795,"height":12}},{"id":"2307be6c-395d-45ed-abf9-a7263fc65c71","block_type":"box","text":"voting but considers the different corporate governance regulations and norms across markets. Votes are determined","page_number":193,"box":{"x":68,"y":89,"width":839,"height":12}},{"id":"07f3ab0e-4875-4fdc-ada2-c741e6a449b5","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":193,"box":{"x":69,"y":104,"width":823,"height":11}},{"id":"03258472-cce5-4c4f-b72c-d294a3434e6c","block_type":"box","text":"Please see page 19 for more information about how we fulfill and oversee our investment stewardship","page_number":193,"box":{"x":69,"y":119,"width":729,"height":11}},{"id":"ae5ca5d8-ea68-4f64-bacf-c53167fddde0","block_type":"box","text":"responsibilities for BlackRock’s non-index equity strategies.","page_number":193,"box":{"x":69,"y":134,"width":423,"height":11}},{"id":"e3c5c4c6-d85b-4db5-aa27-6971df351ba2","block_type":"box","text":"5","page_number":193,"box":{"x":493,"y":134,"width":5,"height":5}},{"id":"195360e2-ebf8-4450-aa01-8b05823d6ac7","block_type":"box","text":"OUR APPROACH TO STEWARDSHIP WITHIN FIXED INCOME","page_number":193,"box":{"x":272,"y":164,"width":434,"height":9}},{"id":"a347ed5f-5745-4dee-bef7-f9b1de4cb5f6","block_type":"box","text":"Although fixed income investors do not have the right to vote at shareholder meetings, issuer engagement is a","page_number":193,"box":{"x":101,"y":183,"width":788,"height":11}},{"id":"abbd2152-e4b0-4104-8242-52e53802132b","block_type":"box","text":"component of fixed income investment strategies at BlackRock, particularly for those with sustainability objectives in","page_number":193,"box":{"x":69,"y":198,"width":831,"height":11}},{"id":"a19d598a-facd-4efa-8ec2-3986d0c90513","block_type":"box","text":"addition to financial objectives. Most corporate governance-related fixed income engagements are undertaken in","page_number":193,"box":{"x":69,"y":212,"width":801,"height":12}},{"id":"afe569e1-e612-4d1c-915f-f683106f5563","block_type":"box","text":"conjunction with the active investment stewardship team, and often active equity investors. In addition to the topics","page_number":193,"box":{"x":69,"y":227,"width":824,"height":11}},{"id":"4e9966df-f431-487b-8592-5e72797b7e8c","block_type":"box","text":"listed below, engagement with fixed income investment teams may help inform an issuer’s approach to structuring","page_number":193,"box":{"x":70,"y":242,"width":816,"height":11}},{"id":"0ffc3dad-4566-4276-8a1c-720249ca4be8","block_type":"box","text":"specialist issuances and the standard terms and information in bond documentation.","page_number":193,"box":{"x":69,"y":257,"width":608,"height":11}},{"id":"be509957-f21b-4c1c-a15f-2e85bfb48091","block_type":"box","text":"5","page_number":193,"box":{"x":69,"y":302,"width":4,"height":4}},{"id":"63059332-807c-44ba-8436-e26ccd7daf5f","block_type":"box","text":"Non-index equity strategies include active equity holdings in BlackRock’s fundamental equity, systematic equity and","page_number":193,"box":{"x":79,"y":301,"width":820,"height":11}},{"id":"3d0694b0-3cd8-4ec3-83da-a93fb297f6dc","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":193,"box":{"x":69,"y":316,"width":822,"height":12}},{"id":"78d1ae22-1f3d-4d41-b050-13d27ae647ae","block_type":"box","text":"extent those strategies hold voting securities or conduct issuer engagements.","page_number":193,"box":{"x":69,"y":332,"width":554,"height":11}},{"id":"66c85e1f-463f-446d-b860-f7c1ecc28466","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":193,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"67f9e22f-0c1c-4c08-b339-db13653cbc6a","block_type":"box","text":"Global Engagement and Voting Guidelines | 6","page_number":193,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"2170e531-4f9d-451a-ab8f-2e8f213d6b82","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":193,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3e7a02f4-ad82-4e01-b7ef-9fb31e54cddc","block_type":"box","text":"BOARDS OF DIRECTORS","page_number":194,"box":{"x":400,"y":45,"width":178,"height":9}},{"id":"170e895c-54ac-47ee-8819-bca4f3947028","block_type":"box","text":"Roles and responsibilities","page_number":194,"box":{"x":69,"y":67,"width":186,"height":11}},{"id":"0d09a816-f761-4b4d-bf3a-6547efbc9532","block_type":"box","text":"There is widespread consensus that the foundation of good corporate governance is an effective board of","page_number":194,"box":{"x":101,"y":86,"width":754,"height":11}},{"id":"05290032-cef5-4a11-acb1-aabb7feff842","block_type":"box","text":"directors that is able to advise and supervise management in an independent and objective manner.","page_number":194,"box":{"x":69,"y":101,"width":715,"height":11}},{"id":"ef21b5a1-4902-44df-b6ce-6673ffe998f9","block_type":"box","text":"6","page_number":194,"box":{"x":786,"y":101,"width":4,"height":5}},{"id":"3e24677b-e772-4545-8f71-9d55ed7562ca","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":194,"box":{"x":101,"y":119,"width":765,"height":12}},{"id":"449e23d8-1298-4668-a130-1ff8f173f16d","block_type":"box","text":"realization of a company’s strategy, purpose and culture. These constructs are interdependent and, when aligned,","page_number":194,"box":{"x":69,"y":134,"width":811,"height":12}},{"id":"9587d497-4933-40b5-ae3e-ca8b7f27a2c0","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":194,"box":{"x":69,"y":149,"width":822,"height":11}},{"id":"a47dbd1f-e9af-40ec-b15b-0727d09fd290","block_type":"box","text":"of corporate or employee misconduct, and attract and retain the caliber of workers necessary to deliver financial","page_number":194,"box":{"x":69,"y":164,"width":799,"height":11}},{"id":"738e58f7-1795-4499-835d-24164fcd1600","block_type":"box","text":"performance over time.","page_number":194,"box":{"x":70,"y":179,"width":164,"height":11}},{"id":"0c73b109-b874-401a-8135-9b9a45c7f708","block_type":"box","text":"In overseeing the management of the company, the board ensures the necessary resources, policies and","page_number":194,"box":{"x":102,"y":198,"width":750,"height":11}},{"id":"9cbb3d3a-4a0c-4ff9-bad5-3d2f63de6d59","block_type":"box","text":"procedures are in place to help management meet its strategic objectives within an agreed risk tolerance.","page_number":194,"box":{"x":70,"y":213,"width":753,"height":11}},{"id":"9f1481ff-9a85-46f0-ab37-24d85260a8da","block_type":"box","text":"One of the most important responsibilities of the board is to appoint, and remove as necessary, the chief","page_number":194,"box":{"x":102,"y":231,"width":753,"height":11}},{"id":"fa4153c1-40dc-463c-ab5e-da3a28e189b7","block_type":"box","text":"executive officer (“CEO”). In addition, the board plays a meaningful role in monitoring the performance of the CEO","page_number":194,"box":{"x":69,"y":246,"width":811,"height":11}},{"id":"7be083de-d80e-4675-97d4-78bc872f9ec5","block_type":"box","text":"and other key executives, determining executive compensation, ensuring a rigorous audit, overseeing strategy","page_number":194,"box":{"x":69,"y":261,"width":783,"height":11}},{"id":"e26d4acf-f8e0-4f5c-8587-f1f370f8d325","block_type":"box","text":"execution and risk management and engaging with shareholders, and other stakeholders, as necessary.","page_number":194,"box":{"x":69,"y":276,"width":742,"height":11}},{"id":"7bd9fd0b-e00c-4f12-81ba-7e93af14f01e","block_type":"box","text":"Composition and effectiveness","page_number":194,"box":{"x":69,"y":298,"width":224,"height":11}},{"id":"a5065bec-40da-45b8-b490-31a5d502cb03","block_type":"box","text":"Appointment process","page_number":194,"box":{"x":68,"y":317,"width":152,"height":11}},{"id":"2635f4f7-38df-44c5-92b1-70d149070e67","block_type":"box","text":"A formal and transparent process for identifying and appointing director candidates is critical to ensuring the","page_number":194,"box":{"x":101,"y":335,"width":773,"height":12}},{"id":"0a853396-401b-4c59-9546-61c5892ded15","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":194,"box":{"x":69,"y":350,"width":792,"height":11}},{"id":"04977bad-8374-4e7c-8d88-3eb735414234","block_type":"box","text":"committee determines the general criteria given the company’s circumstances (","page_number":194,"box":{"x":69,"y":365,"width":568,"height":11}},{"id":"ff985975-61ca-41c1-9386-5d8904655650","block_type":"box","text":"e.g.","page_number":194,"box":{"x":638,"y":367,"width":25,"height":9}},{"id":"f37b8127-8e5a-41ff-a905-02f4b92017ac","block_type":"box","text":", sector, maturity, geographic","page_number":194,"box":{"x":666,"y":365,"width":204,"height":11}},{"id":"e104d3ef-9418-4d76-a44e-1cfcee2f8b42","block_type":"box","text":"footprint) and any additional criteria for a specific role being filled (","page_number":194,"box":{"x":68,"y":380,"width":474,"height":11}},{"id":"bf1c5f0a-e2b0-4010-af05-9fc5973a42d4","block_type":"box","text":"e.g.","page_number":194,"box":{"x":544,"y":381,"width":25,"height":10}},{"id":"bc3dc0cd-7b77-4ee4-835c-6adf203bf289","block_type":"box","text":", financial expertise, industry track record). To","page_number":194,"box":{"x":571,"y":380,"width":327,"height":11}},{"id":"83aeae75-ee69-4208-abca-54a7b8e85d3d","block_type":"box","text":"inform the process, we encourage companies to review the skills and experience of incumbent directors to identify","page_number":194,"box":{"x":70,"y":395,"width":815,"height":11}},{"id":"324f290a-d7a3-45ef-a032-2297eb6627ee","block_type":"box","text":"any gaps and whether the skills and experience of a director candidate would be additive. We welcome disclosures","page_number":194,"box":{"x":69,"y":410,"width":817,"height":11}},{"id":"f9b17e9e-6a60-4b3f-b6c7-34f3072c0a5e","block_type":"box","text":"that explain how the board considered different skills and experience to ensure that the directors collectively can be","page_number":194,"box":{"x":68,"y":425,"width":829,"height":11}},{"id":"cba87d77-35d3-4319-ba34-c708a44650c0","block_type":"box","text":"effective in fulfilling their responsibilities. We assess a company’s board composition against that of its peer group","page_number":194,"box":{"x":69,"y":439,"width":821,"height":12}},{"id":"14ed482b-166e-462e-a3cb-3eb5922d0aac","block_type":"box","text":"and local market requirements.","page_number":194,"box":{"x":69,"y":455,"width":221,"height":10}},{"id":"920eb1e0-abda-46d5-9608-3614bca451ca","block_type":"box","text":"Shareholders periodically vote to elect directors to serve on the board. We do not prescribe any particular board","page_number":194,"box":{"x":102,"y":473,"width":798,"height":11}},{"id":"4bd4d10b-27eb-40da-bb1b-27603f79653f","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":194,"box":{"x":69,"y":488,"width":800,"height":11}},{"id":"fccfac12-4903-4eb8-acc0-641ed603ee6c","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":194,"box":{"x":70,"y":503,"width":794,"height":11}},{"id":"11dd77d2-57fa-4095-810c-6dbc69140c1a","block_type":"box","text":"committee, where a company has not demonstrated it has an appointment process that results in a high functioning","page_number":194,"box":{"x":69,"y":517,"width":830,"height":12}},{"id":"ed9399e9-9b8f-41b9-951b-a62c3727f041","block_type":"box","text":"board with the appropriate complement of skills and experience amongst the directors to support strong financial","page_number":194,"box":{"x":69,"y":532,"width":808,"height":12}},{"id":"5422f43d-086f-45cf-ac39-a572f0985c79","block_type":"box","text":"performance over time. We may vote against newly nominated directors who do not seem to have the appropriate","page_number":194,"box":{"x":70,"y":547,"width":808,"height":12}},{"id":"6c9a439f-8064-42ca-a34b-ace5173f1b41","block_type":"box","text":"skills or experience to contribute to the board’s effectiveness.","page_number":194,"box":{"x":69,"y":562,"width":442,"height":11}},{"id":"22987e67-ebe1-4ab2-8436-bf0c8216e90a","block_type":"box","text":"Independence","page_number":194,"box":{"x":70,"y":585,"width":99,"height":10}},{"id":"0b8a16b9-25ae-4f08-805c-a57f83bb118b","block_type":"box","text":"Director independence from management, significant shareholders or other stakeholders (","page_number":194,"box":{"x":102,"y":603,"width":642,"height":11}},{"id":"c205cd3f-b2a7-44b7-b049-e436a2d4a35f","block_type":"box","text":"e.g.","page_number":194,"box":{"x":746,"y":605,"width":25,"height":9}},{"id":"e77470be-3668-49f2-bb5e-25bdeb7ed599","block_type":"box","text":", government or","page_number":194,"box":{"x":773,"y":604,"width":111,"height":10}},{"id":"b5e9f563-b300-486e-b591-81ea43eb5a7b","block_type":"box","text":"employees) is of paramount importance to the protection of the interests of minority shareholders such as","page_number":194,"box":{"x":69,"y":618,"width":759,"height":11}},{"id":"f99eaec4-63fc-410f-b711-d71eb5b03edb","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":194,"box":{"x":70,"y":633,"width":793,"height":11}},{"id":"ba33b754-3101-41e3-a88c-a1f3592b1a2e","block_type":"box","text":"conflicts of interest or undue influence.","page_number":194,"box":{"x":69,"y":648,"width":278,"height":9}},{"id":"0bf7a349-3f1c-4ee7-8373-b160546fd37c","block_type":"box","text":"7","page_number":194,"box":{"x":349,"y":648,"width":4,"height":5}},{"id":"f946b0d1-d20b-412d-b84d-99d02e6c4454","block_type":"box","text":"This also helps to ensure that board committees are composed of a","page_number":194,"box":{"x":358,"y":648,"width":486,"height":11}},{"id":"2fff7c2d-99d7-4b1d-a8f1-2e190e173ff5","block_type":"box","text":"sufficient number of independent directors. Companies domiciled in markets with a higher threshold for board","page_number":194,"box":{"x":69,"y":663,"width":783,"height":11}},{"id":"2a043728-dd5c-4b5b-bb95-fba885888b37","block_type":"box","text":"independence should meet those local requirements.","page_number":194,"box":{"x":70,"y":678,"width":378,"height":10}},{"id":"1dca560c-45b3-4821-91c0-ca6d6a1da340","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":194,"box":{"x":101,"y":696,"width":803,"height":11}},{"id":"6423ff40-911f-4d9e-98ba-93f3bcd29007","block_type":"box","text":"independence. We may also vote against the election of the chair of the committee responsible for board","page_number":194,"box":{"x":70,"y":711,"width":748,"height":11}},{"id":"48e30696-c18a-4b27-a52e-f763f7fcdbb2","block_type":"box","text":"composition if this is a perennial issue.","page_number":194,"box":{"x":69,"y":726,"width":280,"height":11}},{"id":"7cca9ead-102f-4fb6-a4f2-f8774296e625","block_type":"box","text":"6","page_number":194,"box":{"x":69,"y":756,"width":4,"height":4}},{"id":"836b9a72-b89b-4bf8-a843-589e7f4dace3","block_type":"box","text":"See the Corporate Governance Codes of Germany, Japan, and the UK, as well as the corporate governance","page_number":194,"box":{"x":93,"y":755,"width":763,"height":11}},{"id":"eb969f72-f4a7-4396-a837-bc9a0bc5996f","block_type":"box","text":"principles of the US Business Roundtable as examples.","page_number":194,"box":{"x":94,"y":770,"width":394,"height":11}},{"id":"e51000a0-9603-481d-8e1a-15758f83277e","block_type":"box","text":"7","page_number":194,"box":{"x":69,"y":788,"width":4,"height":5}},{"id":"61ba05a0-809a-48d3-a31e-314824b54846","block_type":"box","text":"Common impediments to independence may include but are not limited to: current or recent employment at the","page_number":194,"box":{"x":93,"y":788,"width":795,"height":11}},{"id":"5c1f0227-2c94-44c3-9424-0efdc670dbb6","block_type":"box","text":"company or a subsidiary; being, or representing, a shareholder with a substantial shareholding in the company;","page_number":194,"box":{"x":93,"y":803,"width":793,"height":11}},{"id":"9e30f98f-a3f2-40a9-a09b-a5c7617151c4","block_type":"box","text":"interlocking directorships; lengthy tenure, and having any other interest, business, or other relationship which","page_number":194,"box":{"x":94,"y":818,"width":778,"height":11}},{"id":"6b351d54-e834-4f72-9311-2cb3b898c6df","block_type":"box","text":"could, or could reasonably be perceived to, materially interfere with a director’s ability to act in the best interests","page_number":194,"box":{"x":93,"y":833,"width":807,"height":11}},{"id":"515ca7cd-87c0-4c5f-a943-2363e79f68eb","block_type":"box","text":"of the company and shareholders.","page_number":194,"box":{"x":93,"y":848,"width":242,"height":11}},{"id":"0b362f78-23a3-4f94-aca3-a142590694a4","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":194,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"c431c7ee-a7dd-413b-9097-45f4003fe45e","block_type":"box","text":"Global Engagement and Voting Guidelines | 7","page_number":194,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"626d6146-5f10-427f-8bc5-2325b4d0c70f","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":194,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e42f92fc-410f-4ede-be74-4cc8e33c02e9","block_type":"box","text":"Independent board leadership","page_number":195,"box":{"x":70,"y":45,"width":212,"height":11}},{"id":"95458fd4-da38-4639-bed1-5e846cbf7e31","block_type":"box","text":"Practices across markets differ, as do board structures, but we observe two main approaches to independent","page_number":195,"box":{"x":102,"y":63,"width":784,"height":11}},{"id":"cc6cee48-1804-4e45-ae82-b06f8bbfcfe6","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":195,"box":{"x":69,"y":78,"width":827,"height":11}},{"id":"bc6539aa-a6d6-48a1-963a-e7b584a9e449","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":195,"box":{"x":68,"y":93,"width":774,"height":11}},{"id":"eaeaab61-8b4d-4693-9061-06652481a3d2","block_type":"box","text":"coordinating with the other non-executive directors and working closely with the executive chair on the board agenda","page_number":195,"box":{"x":69,"y":108,"width":826,"height":11}},{"id":"fdae4097-45c4-4321-9fc8-d296cd134dc3","block_type":"box","text":"and other board procedures. In this case, the executive chair and the lead independent director work together to","page_number":195,"box":{"x":69,"y":123,"width":801,"height":11}},{"id":"4508643c-b4d6-4c15-8bb1-7a1a0313e0e7","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":195,"box":{"x":69,"y":138,"width":823,"height":11}},{"id":"976c80d4-da6c-472b-91d0-90b8430f0dd8","block_type":"box","text":"the chair of a relevant committee, should be available to investors to discuss governance matters such as CEO","page_number":195,"box":{"x":68,"y":152,"width":793,"height":12}},{"id":"ab62d6ec-cac0-4508-b5ef-8ac9c844b4d3","block_type":"box","text":"succession, executive pay, and board performance. We look to boards to explain their board leadership model and","page_number":195,"box":{"x":69,"y":167,"width":816,"height":11}},{"id":"a950b712-1d6b-4689-873e-e37f0f0fd32a","block_type":"box","text":"how it serves the interests of shareholders.","page_number":195,"box":{"x":69,"y":182,"width":311,"height":9}},{"id":"e90f423f-fd3f-4930-ae73-00b45d7345fd","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":195,"box":{"x":101,"y":201,"width":798,"height":11}},{"id":"aee72e8f-a932-4967-a322-f4d528a90978","block_type":"box","text":"an identified independent leader of the board with clear responsibilities for board performance. We may vote against","page_number":195,"box":{"x":69,"y":216,"width":831,"height":11}},{"id":"f46db38f-292e-420b-9f2d-b034d5c53977","block_type":"box","text":"the most senior independent director if the board has a policy of not engaging with shareholders.","page_number":195,"box":{"x":68,"y":231,"width":691,"height":11}},{"id":"0e165f38-5b5f-4a90-8e93-7c5739149bd7","block_type":"box","text":"Tenure and succession","page_number":195,"box":{"x":70,"y":253,"width":162,"height":9}},{"id":"10b76209-4f74-4a89-9593-126be8814f85","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":195,"box":{"x":102,"y":272,"width":803,"height":11}},{"id":"ec7129e8-6645-45c3-9753-f1014b056053","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":195,"box":{"x":69,"y":286,"width":805,"height":11}},{"id":"99357d6b-f231-4e2f-9a84-f24f2e9f8fa9","block_type":"box","text":"director tenure particularly around the contributions of directors who have served for longer periods than typically","page_number":195,"box":{"x":69,"y":301,"width":806,"height":12}},{"id":"7c96b243-9eff-4018-a6a3-a73998a146ba","block_type":"box","text":"provided for under local practice. In our experience, long-serving directors could become less independent given their","page_number":195,"box":{"x":70,"y":316,"width":833,"height":12}},{"id":"389e8cf9-f83e-404b-b51f-ff31f91d7eaf","block_type":"box","text":"long-term relationship with management and involvement in past board decisions.","page_number":195,"box":{"x":70,"y":331,"width":581,"height":11}},{"id":"ca0c40ca-26d5-4131-ac05-7e7f04934867","block_type":"box","text":"Succession planning for board roles helps achieve the appropriate cadence of turnover that balances renewal","page_number":195,"box":{"x":102,"y":350,"width":779,"height":11}},{"id":"8b051dc5-ad9f-4973-85a6-7c351a7c81b4","block_type":"box","text":"through the regular introduction of directors with fresh perspectives and expertise with continuity through the","page_number":195,"box":{"x":68,"y":365,"width":777,"height":11}},{"id":"728514d2-5f12-481c-b414-e10cf8e1f99e","block_type":"box","text":"retention of directors with long-term knowledge of the board and company.","page_number":195,"box":{"x":69,"y":379,"width":528,"height":12}},{"id":"cab941db-2390-4d1c-b3cb-7f9baad9e642","block_type":"box","text":"In markets where there is not specific director tenure guidance from regulation or corporate governance best","page_number":195,"box":{"x":102,"y":398,"width":774,"height":11}},{"id":"fcd40d4d-3112-4904-a03e-184c05663eb4","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":195,"box":{"x":70,"y":413,"width":795,"height":11}},{"id":"9e636dd3-931d-42c1-a198-b787bc7ca4c8","block_type":"box","text":"company does not clearly disclose its approach to director tenure and board renewal. We may vote against the","page_number":195,"box":{"x":69,"y":428,"width":788,"height":11}},{"id":"6858ff6b-f7f5-4bf0-a606-466646b7580e","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":195,"box":{"x":69,"y":443,"width":839,"height":11}},{"id":"a41f227a-4870-437a-85b2-5692882c7b05","block_type":"box","text":"for their continued service is not evident.","page_number":195,"box":{"x":68,"y":458,"width":292,"height":9}},{"id":"bc3b7cfa-0f7e-41ac-9b1e-e0f4b0be6045","block_type":"box","text":"Capacity","page_number":195,"box":{"x":70,"y":480,"width":60,"height":11}},{"id":"a114a8f3-4960-497e-a11d-c09d64f17395","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":195,"box":{"x":101,"y":499,"width":784,"height":11}},{"id":"7906c72d-b8cd-42ba-81e5-1c4ea85f6de6","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":195,"box":{"x":69,"y":513,"width":801,"height":12}},{"id":"d31ebc19-15fd-4659-b02c-ebdd177d960f","block_type":"box","text":"company taking into consideration competing responsibilities. We recognize that board leadership roles vary across","page_number":195,"box":{"x":69,"y":529,"width":823,"height":11}},{"id":"32bb5d47-55f0-49c7-96c1-731e2424aa2b","block_type":"box","text":"markets in responsibilities and required time commitment but note that they are generally more intensive than a","page_number":195,"box":{"x":69,"y":543,"width":800,"height":11}},{"id":"706e8066-866c-4720-a925-74359ea9ea89","block_type":"box","text":"standard directorship. We will take local norms and practices into consideration when making our voting","page_number":195,"box":{"x":69,"y":558,"width":741,"height":11}},{"id":"456de795-3318-4790-b679-10f1e961fae4","block_type":"box","text":"determinations across markets.","page_number":195,"box":{"x":69,"y":573,"width":226,"height":9}},{"id":"adec0a8d-6378-424b-b3dd-a4269b875e32","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":195,"box":{"x":101,"y":592,"width":776,"height":11}},{"id":"5ac48b3f-c839-4411-a981-43dd250f4b18","block_type":"box","text":"their duties to the board and company.","page_number":195,"box":{"x":68,"y":607,"width":275,"height":11}},{"id":"cecf138a-7344-4cc3-a41e-6fce57b34012","block_type":"box","text":"Director elections","page_number":195,"box":{"x":70,"y":629,"width":124,"height":9}},{"id":"acf0ecb1-2fee-495e-a1cd-cffb19322a25","block_type":"box","text":"Regular election of directors, ideally annually, supports director accountability to shareholders. A classified board","page_number":195,"box":{"x":102,"y":647,"width":805,"height":12}},{"id":"103aba36-3163-439c-9f05-f551be7d5087","block_type":"box","text":"structure","page_number":195,"box":{"x":69,"y":663,"width":63,"height":8}},{"id":"0736f6e6-7635-4a10-85f9-ed9d7c7051d8","block_type":"box","text":"8","page_number":195,"box":{"x":133,"y":663,"width":4,"height":4}},{"id":"0eb33d43-f9ce-427a-8aeb-3fdc015f3d79","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":195,"box":{"x":144,"y":662,"width":761,"height":12}},{"id":"f2ced308-d954-47d2-b093-0d736298617a","block_type":"box","text":"basis of its business model (","page_number":195,"box":{"x":69,"y":677,"width":206,"height":11}},{"id":"751d38ae-c5b0-47f9-b80a-9247db91c225","block_type":"box","text":"e.g.","page_number":195,"box":{"x":277,"y":679,"width":24,"height":10}},{"id":"c0da6341-97eb-4983-866f-7de4d2812ff1","block_type":"box","text":", a non-operating company such as closed-end funds).","page_number":195,"box":{"x":304,"y":677,"width":382,"height":12}},{"id":"3e80cdb4-6b60-4a2c-b56f-cd4c6c18cb6e","block_type":"box","text":"Shareholders should have the opportunity to evaluate nominated directors individually rather than in bundled","page_number":195,"box":{"x":102,"y":696,"width":774,"height":11}},{"id":"7dde0473-5577-4e37-a5d3-ddde8fdcafdf","block_type":"box","text":"slates. We look to companies to provide sufficient information on each director standing for election so that","page_number":195,"box":{"x":69,"y":711,"width":770,"height":11}},{"id":"4d29881c-2a5b-453e-87c6-b00430a3146b","block_type":"box","text":"shareholders can assess their capabilities and suitability. We will generally not support the election of directors","page_number":195,"box":{"x":69,"y":726,"width":794,"height":11}},{"id":"97ee7d45-12e6-4756-9dba-dfcb707066eb","block_type":"box","text":"whose names and biographical details have not been disclosed sufficiently in advance of the shareholder meeting.","page_number":195,"box":{"x":68,"y":740,"width":818,"height":12}},{"id":"7e459f37-df1e-4d65-b4de-5ba4376b1ee9","block_type":"box","text":"Each director’s appointment should be dependent on receiving a simple majority of the votes cast at the","page_number":195,"box":{"x":102,"y":759,"width":743,"height":11}},{"id":"48483eed-585b-4988-b742-ca93368c1cdd","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":195,"box":{"x":69,"y":774,"width":823,"height":11}},{"id":"a80d2e7f-2b00-4745-a142-b57634b6d95e","block_type":"box","text":"to how its approach best serves investors’ interests.","page_number":195,"box":{"x":68,"y":789,"width":377,"height":11}},{"id":"e8410272-10d1-4fd4-bfd1-7412f5795506","block_type":"box","text":"We may vote for shareholder or management proposals seeking to establish annual election of directors and/or","page_number":195,"box":{"x":101,"y":807,"width":798,"height":12}},{"id":"ba183ce8-c9c1-4b4c-8bf0-8c6438d4fac3","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":195,"box":{"x":69,"y":822,"width":822,"height":12}},{"id":"c848a1bb-1c79-43f6-961d-58c65918320e","block_type":"box","text":"part of a single slate if we have concerns about the profile or performance of an individual director.","page_number":195,"box":{"x":70,"y":837,"width":706,"height":12}},{"id":"9f0a1289-acfa-4e41-9598-2c2fd5a1a147","block_type":"box","text":"8","page_number":195,"box":{"x":69,"y":867,"width":4,"height":4}},{"id":"7bacce02-5f6b-4ebb-a293-10538ae3cc63","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":195,"box":{"x":78,"y":866,"width":818,"height":12}},{"id":"2c3879b4-ff07-425f-b3c5-c16ff9ead42f","block_type":"box","text":"directors stands for election in any one year.","page_number":195,"box":{"x":69,"y":882,"width":315,"height":11}},{"id":"ff4a6dd1-65dc-4427-996e-11ac4bdeca64","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":195,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"16ceebb2-9300-4b86-8765-e8c1ed4af5e4","block_type":"box","text":"Global Engagement and Voting Guidelines | 8","page_number":195,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"b1cb85fa-f2eb-4ccf-9ef1-3256f758870f","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":195,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8c83971d-cfe7-4940-b199-dff94fecc73c","block_type":"box","text":"Committees","page_number":196,"box":{"x":70,"y":45,"width":84,"height":9}},{"id":"f74ee9dd-ad09-4812-aecb-85279aca43a9","block_type":"box","text":"Many boards establish committees to focus on specific responsibilities of the board such as audit and risk,","page_number":196,"box":{"x":102,"y":63,"width":766,"height":11}},{"id":"f080388a-d04b-4ee9-9686-ecf74a980f13","block_type":"box","text":"governance and human capital, and executive compensation, amongst other matters. We do not prescribe to","page_number":196,"box":{"x":68,"y":78,"width":776,"height":11}},{"id":"ed63b881-fccb-4076-a0d3-d954e3755f16","block_type":"box","text":"companies what committees they should establish, but we seek to understand the board’s rationale for the","page_number":196,"box":{"x":69,"y":93,"width":766,"height":11}},{"id":"adfa2b44-a91b-444c-9544-0c4c5423c6c5","block_type":"box","text":"committee structure it determines is appropriate. We note that, in some markets, regulation requires such","page_number":196,"box":{"x":69,"y":108,"width":759,"height":11}},{"id":"5da4f604-eb2a-45cd-bf9f-2bd43a77f5f8","block_type":"box","text":"committees. The responsibilities of each committee should be clear, and the board should ensure that all critical","page_number":196,"box":{"x":69,"y":123,"width":804,"height":11}},{"id":"c5ee88fc-6dc1-4ff6-af4e-d9ea3fab533f","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":196,"box":{"x":69,"y":138,"width":837,"height":11}},{"id":"06fb7fd9-11ab-4261-9b3e-a8d23072f4a5","block_type":"box","text":"the board discloses the structure, membership, proportion of independent directors, and responsibilities of each","page_number":196,"box":{"x":68,"y":152,"width":806,"height":11}},{"id":"6a911160-494d-4826-9f71-ffb7c7bc0d3f","block_type":"box","text":"committee. The responsibilities we typically see assigned to the three most common committees include:","page_number":196,"box":{"x":69,"y":168,"width":752,"height":11}},{"id":"3dc153bc-a4d4-48d2-b104-fb5040f3eea6","block_type":"box","text":"•","page_number":196,"box":{"x":69,"y":188,"width":6,"height":4}},{"id":"692534d2-3ce0-4e60-8d03-7890a4808cf6","block_type":"box","text":"Audit and risk – oversight responsibilities for the integrity of financial reporting, risk management and","page_number":196,"box":{"x":101,"y":185,"width":722,"height":11}},{"id":"acbda84c-b7b1-46f4-940f-37b3fe7ce719","block_type":"box","text":"compliance with legal and regulatory requirements; may also play an oversight role in relation to the internal","page_number":196,"box":{"x":101,"y":200,"width":771,"height":11}},{"id":"6024f83b-bc16-43dd-abba-00203f733df8","block_type":"box","text":"audit function and whistleblowing mechanisms.","page_number":196,"box":{"x":102,"y":214,"width":335,"height":12}},{"id":"f1926287-f9da-4918-8872-8c19ecdbf4bc","block_type":"box","text":"•","page_number":196,"box":{"x":69,"y":235,"width":6,"height":4}},{"id":"46a7bca8-1148-4665-9326-b275dd7726ed","block_type":"box","text":"Nominating, governance and human capital – oversight responsibilities for corporate governance principles and","page_number":196,"box":{"x":102,"y":232,"width":790,"height":11}},{"id":"d0f4631e-2e63-4664-ae5e-8408ad4f24cc","block_type":"box","text":"practices of the company, including the periodic review of board performance; responsibility for succession","page_number":196,"box":{"x":102,"y":247,"width":761,"height":11}},{"id":"ed26f9fa-7d59-4236-88bb-2542ea543b69","block_type":"box","text":"planning for CEO and key board roles, as well as the director appointment process; may also have oversight","page_number":196,"box":{"x":102,"y":262,"width":769,"height":11}},{"id":"4e9f9aa5-eeda-4021-9e02-84101bfda499","block_type":"box","text":"responsibilities for human capital management strategies, including corporate culture and purpose.","page_number":196,"box":{"x":102,"y":276,"width":707,"height":12}},{"id":"0be450f5-efe2-4264-b2f6-041cbf38411c","block_type":"box","text":"•","page_number":196,"box":{"x":69,"y":297,"width":6,"height":4}},{"id":"255f9586-167e-4b33-a9ea-7c53641f3784","block_type":"box","text":"Executive compensation – determines the compensation policies and programs for the CEO and other executive","page_number":196,"box":{"x":102,"y":294,"width":796,"height":11}},{"id":"bcc6a9f9-0f4d-4449-bb8a-4b55403673b1","block_type":"box","text":"officers, approves annual awards and payments under the policies; may also have oversight responsibilities for","page_number":196,"box":{"x":102,"y":309,"width":793,"height":11}},{"id":"89512f97-ef7c-48e5-a82e-03ec5d90c731","block_type":"box","text":"firm-wide compensation policies.","page_number":196,"box":{"x":101,"y":323,"width":232,"height":11}},{"id":"b507a9df-092d-484b-8337-06964bfd0475","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":196,"box":{"x":101,"y":342,"width":807,"height":11}},{"id":"4637b715-01db-4790-bb7c-aed42503a845","block_type":"box","text":"to convey concerns about how a committee has undertaken its responsibilities. We may vote against the election of","page_number":196,"box":{"x":68,"y":357,"width":828,"height":11}},{"id":"ad1155a7-4d75-44df-b428-a715dcfb9472","block_type":"box","text":"the most senior non-executive director if there is not a clearly disclosed approach to board committees.","page_number":196,"box":{"x":68,"y":372,"width":738,"height":11}},{"id":"5d13e022-57ca-484c-b505-60f71e261a03","block_type":"box","text":"Board and director evaluation","page_number":196,"box":{"x":70,"y":395,"width":209,"height":8}},{"id":"8b66c390-b5ae-4f2d-bc4a-a413bd2863c8","block_type":"box","text":"We consider it best practice for companies to conduct an annual review of the performance of the board, the","page_number":196,"box":{"x":101,"y":413,"width":776,"height":11}},{"id":"2e7e53e9-4ffa-42c2-b5df-fd32dd3291d1","block_type":"box","text":"committees, the chair and individual directors. Periodically, this review could be undertaken by an independent third","page_number":196,"box":{"x":69,"y":428,"width":825,"height":11}},{"id":"20e619b6-1cb5-4206-99b8-1d8ae262d369","block_type":"box","text":"party able to bring objective perspectives to the board on governance and performance. We encourage companies to","page_number":196,"box":{"x":70,"y":443,"width":831,"height":11}},{"id":"aee2d9a0-f7f6-41b7-b1ad-c2d9478300da","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":196,"box":{"x":69,"y":458,"width":835,"height":11}},{"id":"bbc25b67-7796-4f2b-8fd5-b38464c46506","block_type":"box","text":"a result.","page_number":196,"box":{"x":69,"y":473,"width":57,"height":8}},{"id":"090bdd16-4ea4-4219-b310-9b8cd3ece854","block_type":"box","text":"Access to independent advice","page_number":196,"box":{"x":68,"y":495,"width":214,"height":11}},{"id":"b0a603f9-d5a9-4410-b1fd-5c0eb29d4d55","block_type":"box","text":"To support the directors in effectively fulfilling their duties to the company and shareholders, they should have","page_number":196,"box":{"x":101,"y":513,"width":786,"height":12}},{"id":"0823cf21-9713-4018-95d9-eea7d8e7a275","block_type":"box","text":"access to independent advice. In certain circumstances, it may be helpful to boards to retain independent third","page_number":196,"box":{"x":69,"y":528,"width":793,"height":11}},{"id":"1ee3f368-ed92-4e35-86dd-d9e6b6d9ff37","block_type":"box","text":"parties to advise on critical matters. These might include new industry developments such as emergent and","page_number":196,"box":{"x":70,"y":543,"width":770,"height":11}},{"id":"1b755e8f-1f1a-4f93-90a5-ae18aec4bb3b","block_type":"box","text":"disruptive technology, operating events with material consequences for the company’s reputation and/or","page_number":196,"box":{"x":69,"y":558,"width":746,"height":11}},{"id":"82e63c70-b634-45fa-a380-5f84c636e4c4","block_type":"box","text":"performance, or significant transactions. Board committees may similarly retain third parties to advise them on","page_number":196,"box":{"x":70,"y":573,"width":793,"height":11}},{"id":"fc083115-a7cd-4391-b043-37ac0e6cb821","block_type":"box","text":"specialist matters such as audit, compensation and succession planning.","page_number":196,"box":{"x":69,"y":588,"width":524,"height":11}},{"id":"7aef6fd6-a8b7-4aea-8bc3-581baab1abe3","block_type":"box","text":"EXECUTIVE COMPENSATION","page_number":196,"box":{"x":385,"y":618,"width":207,"height":9}},{"id":"9910bb13-0044-4ca6-8610-9430af0086ca","block_type":"box","text":"Boards play an important role in establishing compensation arrangements that enable the company to recruit,","page_number":196,"box":{"x":102,"y":637,"width":784,"height":11}},{"id":"aec2ec3a-11ec-4c18-9752-d00adc362aec","block_type":"box","text":"retain and reward the caliber of executive management necessary to lead and operate the company to deliver","page_number":196,"box":{"x":69,"y":652,"width":782,"height":11}},{"id":"73ab75bd-e215-4552-8ea3-6de22ae5ca87","block_type":"box","text":"superior financial returns over time. We focus on alignment between variable pay and a company’s financial","page_number":196,"box":{"x":69,"y":666,"width":766,"height":12}},{"id":"6abaf895-7f48-4c2f-8519-c5d3a8828c19","block_type":"box","text":"performance.","page_number":196,"box":{"x":70,"y":681,"width":93,"height":11}},{"id":"4385e12c-14d7-410b-90e2-a8b4b1c35c77","block_type":"box","text":"Generally, executive compensation arrangements have four components: base salary, annual bonus that rewards","page_number":196,"box":{"x":102,"y":700,"width":805,"height":11}},{"id":"3c939527-e0ac-4035-9678-bbdc529d41fb","block_type":"box","text":"performance against short-term metrics, incentives – most often share-based that reward performance against long","page_number":196,"box":{"x":70,"y":715,"width":831,"height":11}},{"id":"342acd40-b66f-4557-a41b-843e39c2c769","block_type":"box","text":"term metrics, and pensions and benefits. In our observation, base salary, pensions and benefits are largely set","page_number":196,"box":{"x":68,"y":730,"width":798,"height":11}},{"id":"abb25340-35e5-4b2e-a213-cee0ffeb4556","block_type":"box","text":"relative to market norms and benchmarks. The annual bonus and share-based incentive, or variable pay plans, tend","page_number":196,"box":{"x":69,"y":745,"width":824,"height":11}},{"id":"37e87d95-84c7-4a48-a662-cfab7bed8eb7","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":196,"box":{"x":68,"y":760,"width":807,"height":11}},{"id":"e422f559-c01e-44a4-9053-5ff3ce9378fa","block_type":"box","text":"recruit and motivate.","page_number":196,"box":{"x":69,"y":774,"width":146,"height":9}},{"id":"d8f8bf88-e174-4971-8fcc-b240c7102135","block_type":"box","text":"Recognizing the unique circumstances of each company, we determine whether to support a company’s","page_number":196,"box":{"x":102,"y":793,"width":739,"height":11}},{"id":"0f2f82aa-2220-42df-b156-01f843d988af","block_type":"box","text":"approach to executive compensation on a case-by-case basis. We rely on companies providing sufficient quantitative","page_number":196,"box":{"x":69,"y":808,"width":831,"height":11}},{"id":"a7efd9e1-41ed-4ac1-8bb4-e4f8fddbd577","block_type":"box","text":"and qualitative information in their disclosures to enable shareholders to understand the compensation","page_number":196,"box":{"x":69,"y":823,"width":737,"height":11}},{"id":"8ca36d18-df51-4394-9d58-517e8279d825","block_type":"box","text":"arrangements and assess the alignment with investors’ interests. Features we look for in compensation","page_number":196,"box":{"x":69,"y":837,"width":741,"height":12}},{"id":"ad1e127c-63bd-4949-9234-c56d0153f4f1","block_type":"box","text":"arrangements include:","page_number":196,"box":{"x":69,"y":853,"width":157,"height":11}},{"id":"6d7741e7-439e-47b0-8b04-f07d10229fc6","block_type":"box","text":"•","page_number":196,"box":{"x":69,"y":873,"width":6,"height":4}},{"id":"ef733d85-115e-43b0-98a5-e4fed8bc5f80","block_type":"box","text":"Fixed pay components, including base salary, benefits and prerequisites that are appropriate in the context of","page_number":196,"box":{"x":102,"y":870,"width":783,"height":11}},{"id":"150c7a89-3994-452e-9a4d-c7ffdc5aa8f2","block_type":"box","text":"the company’s size, sector and market.","page_number":196,"box":{"x":101,"y":885,"width":280,"height":11}},{"id":"6a3eae4f-809f-4dbe-a5ef-4704d8d52ca3","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":196,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"51837193-de52-4ee3-a849-7873f63e118e","block_type":"box","text":"Global Engagement and Voting Guidelines | 9","page_number":196,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"f665676b-c2de-4e94-90b1-e87a9ed4e6e7","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":196,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6ba22bd5-00d8-43a0-9ff4-983e4f19c982","block_type":"box","text":"•","page_number":197,"box":{"x":69,"y":48,"width":6,"height":4}},{"id":"819a1207-f4a3-4b9c-b2ad-3a43c2508798","block_type":"box","text":"Variable pay subject to performance metrics that are closely linked to the company’s short- and long-term","page_number":197,"box":{"x":101,"y":45,"width":752,"height":11}},{"id":"f1c4709e-a85c-457e-b399-5ebde4be2d0b","block_type":"box","text":"strategic objectives.","page_number":197,"box":{"x":102,"y":60,"width":140,"height":11}},{"id":"86b8307e-db6e-493c-a224-694bc3fdf9c7","block_type":"box","text":"•","page_number":197,"box":{"x":69,"y":80,"width":6,"height":4}},{"id":"f74d77da-2b6d-4cd5-b9cd-bbd2c930ec38","block_type":"box","text":"Long-term incentives that motivate sustained performance across a multi-year period.","page_number":197,"box":{"x":102,"y":77,"width":609,"height":11}},{"id":"c3d06100-f06f-48f0-ac1a-c213269ffc6a","block_type":"box","text":"•","page_number":197,"box":{"x":69,"y":97,"width":6,"height":5}},{"id":"2add3fcf-4a6c-4344-8e8f-b420a50a36e4","block_type":"box","text":"A balance between fixed and variable pay, short- and long-term incentives, and specific instruments (cash and","page_number":197,"box":{"x":101,"y":94,"width":784,"height":12}},{"id":"e5381134-5ca0-4920-b0a5-a001a460aacc","block_type":"box","text":"equity awards) that promotes pay program durability and seldom necessitates one-off, discretionary payments.","page_number":197,"box":{"x":101,"y":109,"width":790,"height":11}},{"id":"c91b1c58-4017-46c8-bf37-06db57f7c200","block_type":"box","text":"•","page_number":197,"box":{"x":69,"y":129,"width":6,"height":5}},{"id":"68d4dd1c-cbac-44ed-8ef0-ef0763e18d60","block_type":"box","text":"Pay outcomes that are consistent with the returns to investors over the relevant time period.","page_number":197,"box":{"x":102,"y":127,"width":658,"height":11}},{"id":"8d7a0805-7274-4b01-8dfa-af1d6fd36cef","block_type":"box","text":"•","page_number":197,"box":{"x":69,"y":147,"width":6,"height":4}},{"id":"f4d0dda7-13d6-4933-abf1-8a40c58322a2","block_type":"box","text":"Board discretion, if allowed within the variable pay arrangements, to be used sparingly, responsibly and","page_number":197,"box":{"x":102,"y":144,"width":735,"height":11}},{"id":"e5359625-4cf1-47f7-92dd-6d777153f15a","block_type":"box","text":"transparently.","page_number":197,"box":{"x":101,"y":159,"width":95,"height":11}},{"id":"e1fd24f8-4e16-4c7a-ab9d-2502b5290854","block_type":"box","text":"•","page_number":197,"box":{"x":69,"y":179,"width":6,"height":5}},{"id":"601eaa97-22dc-4a2c-af6b-f6868a5ac63d","block_type":"box","text":"A requirement, that participants in long-term share-based incentive plans build a meaningful shareholding in the","page_number":197,"box":{"x":101,"y":176,"width":798,"height":11}},{"id":"ef90155b-d70e-4752-82ea-bbe802f6c89e","block_type":"box","text":"company within a defined time period, as determined by the board or relevant board committee.","page_number":197,"box":{"x":101,"y":191,"width":683,"height":11}},{"id":"a3baae47-95b6-47f8-90fc-cd0fadeedeff","block_type":"box","text":"•","page_number":197,"box":{"x":69,"y":211,"width":6,"height":5}},{"id":"88e871a6-dc32-426d-b3da-a37d9ecd6170","block_type":"box","text":"Change of control provisions that appropriately balance the interests of executives and shareholders.","page_number":197,"box":{"x":102,"y":208,"width":720,"height":12}},{"id":"92da66cb-ef9d-4fee-be4c-7f34628d345c","block_type":"box","text":"•","page_number":197,"box":{"x":69,"y":229,"width":6,"height":4}},{"id":"b7c5083b-f389-4baf-a91e-b4dc61306792","block_type":"box","text":"Clawback or malus provisions that allow the company to recoup or hold back variable compensation from","page_number":197,"box":{"x":102,"y":226,"width":747,"height":11}},{"id":"0092cf7b-b3ea-42bc-9961-6ad7db1e6361","block_type":"box","text":"individuals whose awards were based on fraudulent activities, misstated financial reports, or executive","page_number":197,"box":{"x":102,"y":241,"width":733,"height":11}},{"id":"4d4fc38c-4b0b-4208-be25-ecb2d3180e6c","block_type":"box","text":"misconduct.","page_number":197,"box":{"x":102,"y":256,"width":84,"height":8}},{"id":"1738d1a3-2700-401c-8021-dee1bd88fbcb","block_type":"box","text":"•","page_number":197,"box":{"x":69,"y":276,"width":6,"height":4}},{"id":"c1674482-a251-4a39-ab7f-a20e7d2142e3","block_type":"box","text":"Severance arrangements that protect the company’s interests but do not cost more than is contractual.","page_number":197,"box":{"x":102,"y":273,"width":738,"height":11}},{"id":"8fcc5218-2371-4159-9ce1-cd2b538de8f2","block_type":"box","text":"We may vote against proposals to introduce new share-based incentives, approve existing policies or plans, or","page_number":197,"box":{"x":101,"y":292,"width":787,"height":11}},{"id":"2339385e-1833-4358-8b3f-3da4c3279006","block_type":"box","text":"approve the compensation report where we do not see alignment between executive compensation arrangements","page_number":197,"box":{"x":69,"y":307,"width":810,"height":11}},{"id":"e4766c43-ae5e-4507-bc71-1f9358a905a3","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":197,"box":{"x":69,"y":321,"width":831,"height":11}},{"id":"af4a91ea-949f-4f71-85e3-432c7a0ca7a9","block_type":"box","text":"compensation misaligned with performance, we may vote against the election of the chair of the responsible","page_number":197,"box":{"x":69,"y":336,"width":775,"height":11}},{"id":"b67246c2-3031-4965-bf54-d00e325ff686","block_type":"box","text":"committee, or the most senior independent director.","page_number":197,"box":{"x":69,"y":351,"width":371,"height":11}},{"id":"2739415b-6750-4033-a080-701d359e8219","block_type":"box","text":"NON-EXECUTIVE DIRECTOR COMPENSATION","page_number":197,"box":{"x":326,"y":381,"width":325,"height":9}},{"id":"efebe6fb-9a7f-441f-a3b9-6effc2f2a174","block_type":"box","text":"Companies generally pay non-executive directors an annual retainer or fee in cash, shares or a combination of","page_number":197,"box":{"x":102,"y":400,"width":785,"height":11}},{"id":"f440ed69-0fb7-43a8-b9da-039eb7c28835","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":197,"box":{"x":68,"y":415,"width":831,"height":11}},{"id":"0145433b-3032-4c0f-9026-54ca0db084ba","block_type":"box","text":"do not support non-executive directors participating in performance-based incentive plans as doing so may create a","page_number":197,"box":{"x":69,"y":430,"width":825,"height":11}},{"id":"19008f6d-56a8-4cdd-837e-7c64a6b446be","block_type":"box","text":"conflict of interest and undermine their independence from management, whom they oversee.","page_number":197,"box":{"x":69,"y":444,"width":668,"height":12}},{"id":"00144f91-768f-4c82-9722-57c599d64b3e","block_type":"box","text":"CAPITAL STRUCTURE","page_number":197,"box":{"x":411,"y":475,"width":156,"height":8}},{"id":"a3648b1a-8307-489f-925e-36d79e17b44d","block_type":"box","text":"Boards are responsible for ensuring senior executive leadership has established a capital strategy that achieves","page_number":197,"box":{"x":102,"y":493,"width":800,"height":12}},{"id":"51b2459d-3db0-4ed9-92ac-62607ab7f4be","block_type":"box","text":"appropriate capital allocation in support of long-term financial resilience.","page_number":197,"box":{"x":69,"y":508,"width":516,"height":11}},{"id":"7b950fc8-5e24-41b6-a84f-10059739650a","block_type":"box","text":"Where company practices diverge from those set out below, we look for companies to disclose why they view","page_number":197,"box":{"x":101,"y":527,"width":776,"height":11}},{"id":"6cb1bb40-84a5-40f5-b43c-0590d0ddba9b","block_type":"box","text":"these practices to be aligned with shareholders’ interests. We may vote against management proposals seeking","page_number":197,"box":{"x":68,"y":542,"width":803,"height":11}},{"id":"a84795ca-72c8-4e8f-8326-c6637bde22dc","block_type":"box","text":"capital-related authorities, or the election of the most senior independent director, if we have concerns about a","page_number":197,"box":{"x":69,"y":557,"width":790,"height":11}},{"id":"f8085b1f-55a0-4eba-993a-27230820c5b3","block_type":"box","text":"company’s approach. We may also support a shareholder proposal seeking conversion of shares with differentiated","page_number":197,"box":{"x":69,"y":571,"width":825,"height":12}},{"id":"2a173f05-0444-4267-a5a0-9f4315512d99","block_type":"box","text":"voting rights to a one-share, one-vote standard.","page_number":197,"box":{"x":68,"y":587,"width":336,"height":11}},{"id":"1dc7f25b-84b0-4ce1-b4e6-9d26dbb926e6","block_type":"box","text":"Share issuance","page_number":197,"box":{"x":68,"y":609,"width":111,"height":9}},{"id":"ff5f7176-16ba-4799-a9cb-4c20500b57df","block_type":"box","text":"We assess requests for share issuance for particular transactions on a case-by-case basis. We will generally","page_number":197,"box":{"x":101,"y":627,"width":776,"height":12}},{"id":"68d6f6bf-cc81-447c-a494-4e17122130fd","block_type":"box","text":"support authorities to issue shares when subject to pre-emptive rights, and up to 20% absent pre-emptive rights. We","page_number":197,"box":{"x":69,"y":642,"width":832,"height":12}},{"id":"0c0bc08c-fbbc-4dd1-a893-e142d1b01b0c","block_type":"box","text":"consider it good practice for companies to seek regular approval of these authorities to allow shareholders to take","page_number":197,"box":{"x":69,"y":657,"width":815,"height":11}},{"id":"fc2fa0d7-bdf6-4d1d-a9b6-66539330a976","block_type":"box","text":"into consideration how prior authorities were used, as well as the current circumstances of the company and the","page_number":197,"box":{"x":70,"y":672,"width":802,"height":11}},{"id":"00a824d5-8aaf-4285-ba65-6fbaa03a0432","block_type":"box","text":"market environment.","page_number":197,"box":{"x":69,"y":687,"width":145,"height":9}},{"id":"50fef2c3-3e87-487a-9d53-c446a3956c2e","block_type":"box","text":"Share buybacks","page_number":197,"box":{"x":68,"y":709,"width":116,"height":11}},{"id":"6b565883-dade-482b-9118-2da4d7e83b42","block_type":"box","text":"We assess share buyback proposals in the context of the company’s disclosed capital management strategy and","page_number":197,"box":{"x":101,"y":728,"width":806,"height":11}},{"id":"b16ae19b-d467-4995-8570-cdbf4984a397","block_type":"box","text":"management’s determination of the appropriate balance between investment that supports the long-term growth of","page_number":197,"box":{"x":69,"y":743,"width":823,"height":11}},{"id":"ff9ae69e-f799-4202-98a9-c1ab07022eda","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":197,"box":{"x":68,"y":758,"width":836,"height":11}},{"id":"4bb47202-7184-4146-8e15-9a4397ae5e4c","block_type":"box","text":"company’s balance sheet and executive compensation arrangements and the price at which shares are repurchased","page_number":197,"box":{"x":69,"y":773,"width":830,"height":11}},{"id":"c79bb587-8401-4f12-9d10-e8163daaee7e","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":197,"box":{"x":69,"y":787,"width":822,"height":12}},{"id":"7d535f6f-c811-402c-9675-3d504c4c137a","block_type":"box","text":"allow shareholders to take into consideration how prior authorities were used, as well as the current circumstances","page_number":197,"box":{"x":69,"y":802,"width":823,"height":11}},{"id":"87dc6b55-f172-4d58-b8a9-fd933253f083","block_type":"box","text":"of the company and the market environment.","page_number":197,"box":{"x":69,"y":817,"width":319,"height":11}},{"id":"ed1fca15-2d43-4bde-81f5-6345c654ea76","block_type":"box","text":"Dividends","page_number":197,"box":{"x":69,"y":840,"width":69,"height":8}},{"id":"553e5a51-832f-4744-a241-a2215721931f","block_type":"box","text":"We generally defer to management and the board on dividend policy but may engage to seek further clarification","page_number":197,"box":{"x":101,"y":858,"width":799,"height":11}},{"id":"99ff5902-2a94-45cd-a599-10116f3905ef","block_type":"box","text":"where a proposed dividend appears out of line with the company’s financial position.","page_number":197,"box":{"x":68,"y":873,"width":604,"height":11}},{"id":"6d6a2023-62d9-4f54-ac2b-f25bb284513c","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":197,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"9d9b920f-e063-4d3a-a14d-815bf5150c2b","block_type":"box","text":"Global Engagement and Voting Guidelines | 10","page_number":197,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"59641d23-8c3a-4d3e-9060-4b2e8deeca2d","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":197,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"480b6149-e4b9-4410-bc91-63e90088ca74","block_type":"box","text":"Differentiated voting rights","page_number":198,"box":{"x":69,"y":45,"width":196,"height":11}},{"id":"f8985494-82e8-4e95-aa1e-c03b7ddffc1a","block_type":"box","text":"We prefer companies to adopt a one-share, one-vote structure for share classes with the same economic","page_number":198,"box":{"x":101,"y":63,"width":750,"height":11}},{"id":"f48d1fbc-f57b-4d18-9ea8-bd5343d605b0","block_type":"box","text":"exposure. Certain companies, particularly those new to public markets, could make the case to adopt a","page_number":198,"box":{"x":69,"y":78,"width":740,"height":11}},{"id":"1c933f40-8d47-4e77-8673-a38d0bf1777f","block_type":"box","text":"differentiated voting rights structure, or dual class stock. In those situations, we encourage companies to evaluate","page_number":198,"box":{"x":69,"y":93,"width":819,"height":11}},{"id":"03844a58-8cdf-457e-9cb4-17c7f139134c","block_type":"box","text":"and seek approval for their capital structure on a periodic basis.","page_number":198,"box":{"x":69,"y":108,"width":456,"height":11}},{"id":"bf06234e-227a-4daf-9c4b-c6478a4ebdc7","block_type":"box","text":"TRANSACTIONS AND SPECIAL SITUATIONS","page_number":198,"box":{"x":332,"y":138,"width":314,"height":9}},{"id":"a66dab8b-0459-4931-94f1-24013160cbbf","block_type":"box","text":"We monitor developments in transactions and special situations closely and undertake our own detailed","page_number":198,"box":{"x":101,"y":157,"width":743,"height":11}},{"id":"eeead436-b2f3-4088-ac77-ad651f81fc81","block_type":"box","text":"analyses of proposals.","page_number":198,"box":{"x":69,"y":172,"width":159,"height":11}},{"id":"06f4da7a-c6d0-4eb9-aa38-89eae89f15e6","block_type":"box","text":"Mergers and acquisitions","page_number":198,"box":{"x":69,"y":194,"width":184,"height":11}},{"id":"64c4ee19-6acc-41d2-baab-a02336f17749","block_type":"box","text":"We evaluate proposed mergers or acquisitions by assessing the financial outcome for our clients as minority","page_number":198,"box":{"x":101,"y":213,"width":775,"height":11}},{"id":"a6e1d5c2-3533-4787-b4f9-47a10eadca8f","block_type":"box","text":"shareholders. Management should provide an assessment of the proposed transaction’s strategic and financial","page_number":198,"box":{"x":69,"y":228,"width":797,"height":11}},{"id":"55c5b661-1f0b-4439-b302-0db625e893e2","block_type":"box","text":"rationale, along with its execution and operational risks. We review each transaction independently based on these","page_number":198,"box":{"x":69,"y":243,"width":819,"height":11}},{"id":"5e638145-8edd-407a-adab-23b18e878d48","block_type":"box","text":"factors and the degree to which the transaction enhances shareholder value. The board might consider establishing","page_number":198,"box":{"x":68,"y":257,"width":827,"height":12}},{"id":"faf3a007-5992-4bd8-8eba-e526c3763e3b","block_type":"box","text":"an ad hoc transaction committee to undertake an independent assessment of a significant merger or acquisition, in","page_number":198,"box":{"x":69,"y":272,"width":827,"height":11}},{"id":"1ce30677-6e23-4730-b9e0-80afebdf62ab","block_type":"box","text":"advance of making its recommendation to shareholders.","page_number":198,"box":{"x":69,"y":287,"width":400,"height":11}},{"id":"5d31f5ad-180c-4400-ad1e-0280b8b58671","block_type":"box","text":"We will vote against transactions that, in our assessment, do not advance our clients’ financial interests.","page_number":198,"box":{"x":101,"y":306,"width":749,"height":11}},{"id":"ce86de31-08e4-4bba-893e-941dfad7ff6c","block_type":"box","text":"Anti-takeover defenses","page_number":198,"box":{"x":68,"y":328,"width":167,"height":9}},{"id":"fb3e3ab5-c96b-4e99-a932-dc9ed37b7ac9","block_type":"box","text":"In principle, we do not support companies using anti-takeover defenses, also known as poison pills or","page_number":198,"box":{"x":102,"y":347,"width":727,"height":11}},{"id":"698bf158-9ce4-4093-af28-753d7db7efc5","block_type":"box","text":"shareholder rights plans, as they can entrench management and boards which have not delivered long-term","page_number":198,"box":{"x":69,"y":362,"width":766,"height":11}},{"id":"ebe512a9-3303-443e-a153-01d7e2a07fb6","block_type":"box","text":"shareholder value. By exception, a poison pill may be supported if its purpose is to delay a takeover that is","page_number":198,"box":{"x":69,"y":376,"width":763,"height":12}},{"id":"1ca2ffc1-c2b5-479e-9e7c-f19c0c77b418","block_type":"box","text":"considered sub-optimal and enable management to seek an improved offer. Similarly, management could make the","page_number":198,"box":{"x":69,"y":391,"width":821,"height":12}},{"id":"85d22f91-6df7-41b9-948b-74a7af734758","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":198,"box":{"x":69,"y":406,"width":799,"height":11}},{"id":"93bd002b-80eb-4882-876d-ae424235ffec","block_type":"box","text":"investors. Defense mechanisms introduced in these circumstances should be limited in term and threshold, and also","page_number":198,"box":{"x":70,"y":421,"width":836,"height":11}},{"id":"c79e8111-d811-4255-84b4-eae445c56266","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":198,"box":{"x":69,"y":436,"width":835,"height":11}},{"id":"4b69033e-fbce-439a-b7e8-342cc3bcc4ea","block_type":"box","text":"a shareholder vote any mechanisms expected to be in place for more than 12 months.","page_number":198,"box":{"x":69,"y":451,"width":616,"height":11}},{"id":"b13e6659-bd10-4a63-9446-fca65d6fe408","block_type":"box","text":"Shareholder activism","page_number":198,"box":{"x":68,"y":473,"width":153,"height":9}},{"id":"5627bccf-99dc-41ef-a444-6176e959eab5","block_type":"box","text":"When companies are the focus of an activism campaign, we may communicate with the activist to understand","page_number":198,"box":{"x":101,"y":492,"width":783,"height":11}},{"id":"188cd562-4a0c-4a39-a232-269213fc2fa9","block_type":"box","text":"their analysis and objectives, once they have publicly disclosed their campaign. We may also engage with company","page_number":198,"box":{"x":68,"y":507,"width":819,"height":11}},{"id":"a14b9e01-72f6-447e-a591-4595d82d4b4d","block_type":"box","text":"management and possibly board members, especially those the activist may be seeking to replace. In our","page_number":198,"box":{"x":69,"y":522,"width":755,"height":11}},{"id":"63e315d0-6d8b-4ca1-aea8-1ed404c84a97","block_type":"box","text":"assessment, we evaluate various factors, including the concerns raised by the activist and the case for change; the","page_number":198,"box":{"x":69,"y":536,"width":824,"height":12}},{"id":"bd76300e-1a81-4c27-86db-8a98014ec5df","block_type":"box","text":"quality of both the activist’s and management’s plans; and the qualifications of each party’s candidates. We evaluate","page_number":198,"box":{"x":69,"y":551,"width":839,"height":12}},{"id":"b91a218e-ed96-4ee8-a928-f7e2775763de","block_type":"box","text":"each contested situation by assessing the potential financial outcome for our clients as minority shareholders.","page_number":198,"box":{"x":69,"y":566,"width":788,"height":11}},{"id":"420a51c1-5c07-4ec3-bfa8-854b1c1ff04d","block_type":"box","text":"We may support board candidates nominated by a shareholder activist if BAIS, in its independent judgment, or","page_number":198,"box":{"x":101,"y":585,"width":789,"height":11}},{"id":"c4649654-a095-4847-8e26-3c1ae8298b56","block_type":"box","text":"the relevant portfolio manager has determined that there is a case for change to enhance shareholder value, or if the","page_number":198,"box":{"x":68,"y":600,"width":839,"height":11}},{"id":"9a33d57b-40a2-431f-97cd-b93e1f45a65b","block_type":"box","text":"incumbent board members do not demonstrate the relevant skills and expertise or have a poor track record of","page_number":198,"box":{"x":70,"y":614,"width":786,"height":11}},{"id":"78597b54-4c2b-4806-b9ca-f8a954b65ac9","block_type":"box","text":"protecting shareholders’ interests.","page_number":198,"box":{"x":70,"y":630,"width":244,"height":11}},{"id":"972b1b26-0310-49ee-a272-0925eea21228","block_type":"box","text":"Significant shareholders and related party transactions","page_number":198,"box":{"x":68,"y":652,"width":403,"height":11}},{"id":"dee21f08-1c96-4a3f-a265-6313b41cda4c","block_type":"box","text":"Boards of companies with affiliated shareholders or directors should give equitable consideration to the","page_number":198,"box":{"x":102,"y":670,"width":740,"height":12}},{"id":"ca054ea0-9bb7-4c90-b242-9ce2bc9b2b22","block_type":"box","text":"interests of all shareholders when evaluating related party transactions.","page_number":198,"box":{"x":70,"y":685,"width":511,"height":12}},{"id":"0f1bbbbe-d6c2-4b29-8a83-9c358bb3a271","block_type":"box","text":"We consider it good practice for transactions with related parties, such as significant shareholders or companies","page_number":198,"box":{"x":101,"y":704,"width":805,"height":11}},{"id":"2cd3ca98-14b7-4f77-87a2-ebb781ed3547","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":198,"box":{"x":69,"y":719,"width":832,"height":11}},{"id":"098cad4c-0066-466e-a781-ed53ce288822","block_type":"box","text":"have been agreed with a non-related party. In our view, such transactions should be reviewed and approved by the","page_number":198,"box":{"x":69,"y":734,"width":812,"height":11}},{"id":"cf28cbd3-1a80-4f63-ab53-9fe00b069520","block_type":"box","text":"independent members of the board, and if voted on, only disinterested shareholders should vote.","page_number":198,"box":{"x":70,"y":748,"width":692,"height":12}},{"id":"2eba4416-de35-42b3-89f2-a1453ecf8490","block_type":"box","text":"CORPORATE REPORTING, RISK MANAGEMENT AND AUDIT","page_number":198,"box":{"x":274,"y":779,"width":430,"height":10}},{"id":"ce77f946-22f4-410f-8038-198ebc1246b5","block_type":"box","text":"Investors depend on corporate reporting, both regulatory and voluntary, to understand a company’s strategy, its","page_number":198,"box":{"x":102,"y":798,"width":796,"height":11}},{"id":"b09bbf04-e815-4ee6-9efd-5283cf2b15e1","block_type":"box","text":"implementation and financial performance, as well as to assess the quality of management and operations and","page_number":198,"box":{"x":70,"y":812,"width":795,"height":12}},{"id":"a14ac76d-dc06-4540-98ae-14be99669f42","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":198,"box":{"x":70,"y":827,"width":779,"height":11}},{"id":"e1996bf4-9079-42a1-bc4b-a85ee9462f31","block_type":"box","text":"oversee corporate reporting and the policies and procedures underpinning the internal audit function and external","page_number":198,"box":{"x":69,"y":842,"width":809,"height":11}},{"id":"fe10fa59-3f7d-4757-ab38-69de76932be4","block_type":"box","text":"audit.","page_number":198,"box":{"x":69,"y":857,"width":38,"height":9}},{"id":"b90809bd-dbe7-45fc-847b-cd5de3e56514","block_type":"box","text":"A company’s financial reporting should provide decision-useful information for investors, and other stakeholders,","page_number":198,"box":{"x":101,"y":875,"width":803,"height":12}},{"id":"86875b92-f78f-4143-a410-52369cc08c18","block_type":"box","text":"on its financial performance and position. It should provide an accurate and balanced assessment of the risks and","page_number":198,"box":{"x":69,"y":890,"width":819,"height":11}},{"id":"92934bda-7e75-4fec-9c3b-151776fa81ec","block_type":"box","text":"opportunities the company faces in realizing its long-term strategy. Accordingly, the assumptions made by","page_number":198,"box":{"x":69,"y":905,"width":752,"height":12}},{"id":"76eb7f49-f793-4735-81e3-8e9bbc220e86","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":198,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"35781f99-5d83-414b-b64d-6adb8724853e","block_type":"box","text":"Global Engagement and Voting Guidelines | 11","page_number":198,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"33d2c16a-560c-4bd7-ae7e-0226db226c31","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":198,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7b697ec7-ea67-494d-8212-76cc6885a9fc","block_type":"box","text":"management and reviewed by the auditor in preparing the financial statements should be reasonable and justified.","page_number":199,"box":{"x":69,"y":45,"width":817,"height":11}},{"id":"c352c2d1-5037-4b01-aba8-c9b104bce4e5","block_type":"box","text":"Financial statements should be prepared in accordance with globally developed reporting standards and any","page_number":199,"box":{"x":70,"y":60,"width":771,"height":11}},{"id":"08aeead1-353e-4524-8153-81b0831434c0","block_type":"box","text":"divergence from generally accepted accounting principles should be explained in detail and justified. Accounting","page_number":199,"box":{"x":69,"y":74,"width":796,"height":12}},{"id":"21be9833-88e9-4d79-907c-7e3a1dd0f670","block_type":"box","text":"restatements should be explained in detail and any remedial actions, and the implications of these, disclosed.","page_number":199,"box":{"x":69,"y":89,"width":788,"height":11}},{"id":"dce1042e-e887-4563-811e-397a11a0137e","block_type":"box","text":"In this context, audit committees play a vital role in a company’s financial reporting system by providing","page_number":199,"box":{"x":102,"y":108,"width":739,"height":11}},{"id":"d70ff8c5-9326-42b4-86b4-c230cc614927","block_type":"box","text":"independent oversight of the accounts, material financial and, where appropriate to the jurisdiction, non-financial","page_number":199,"box":{"x":70,"y":123,"width":801,"height":11}},{"id":"baca50b5-af17-4364-aec4-49026074e0f9","block_type":"box","text":"information, internal control frameworks and Enterprise Risk Management systems. In our view, effective audit","page_number":199,"box":{"x":70,"y":138,"width":787,"height":11}},{"id":"1fb859ff-cbef-43b0-baca-5ed22623274e","block_type":"box","text":"committee oversight strengthens the quality and reliability of a company’s financial statements and provides an","page_number":199,"box":{"x":69,"y":152,"width":795,"height":12}},{"id":"a76511b5-7005-45db-89d7-cc5a89c0de29","block_type":"box","text":"important level of reassurance to shareholders. Audit committees should have a procedure in place for assessing the","page_number":199,"box":{"x":70,"y":167,"width":838,"height":12}},{"id":"b46739c2-b56f-4b7b-b757-c90270f3df9d","block_type":"box","text":"independence of the auditor and the quality of the external audit process annually.","page_number":199,"box":{"x":70,"y":182,"width":585,"height":11}},{"id":"773f5bfc-24bb-4e78-abd1-344a0b7ea24d","block_type":"box","text":"Similarly, we encourage companies to disclose material sustainability-related factors that are integral to how a","page_number":199,"box":{"x":102,"y":201,"width":784,"height":11}},{"id":"d2e70161-91f1-4b9f-b3e1-497019bb07e5","block_type":"box","text":"company manages risks or generates revenue. BAIS finds it helpful to our understanding when companies provide","page_number":199,"box":{"x":69,"y":216,"width":812,"height":11}},{"id":"7a704463-81be-41c3-8ee4-686ee95e1cc8","block_type":"box","text":"robust, standardized disclosures on their material sustainability-related risks and opportunities. The International","page_number":199,"box":{"x":69,"y":231,"width":806,"height":11}},{"id":"6d264d62-dc5a-417d-9743-3c90a776d46c","block_type":"box","text":"Sustainability Standards Board (ISSB) is one entity working to meet these objectives through its reporting standards,","page_number":199,"box":{"x":69,"y":246,"width":832,"height":11}},{"id":"440e61d0-be83-4806-ae4c-b6a8613cc403","block_type":"box","text":"which may be helpful to companies in preparing such reports.","page_number":199,"box":{"x":68,"y":260,"width":440,"height":12}},{"id":"165a416b-38f5-449b-996a-557ee130e75d","block_type":"box","text":"9","page_number":199,"box":{"x":509,"y":261,"width":5,"height":4}},{"id":"55d5df79-f3b2-4c94-a062-5e3d63f894b7","block_type":"box","text":"However, we do not mandate any specific disclosure","page_number":199,"box":{"x":520,"y":260,"width":372,"height":11}},{"id":"151f1983-e7bd-4e5f-8665-d0b062ef0bfd","block_type":"box","text":"framework, and note that companies in certain jurisdictions are subject to mandatory reporting requirements under","page_number":199,"box":{"x":68,"y":275,"width":824,"height":11}},{"id":"de771aef-dc07-4525-994c-89712607d3d2","block_type":"box","text":"standards specified by policy makers.","page_number":199,"box":{"x":69,"y":290,"width":267,"height":11}},{"id":"495f2abb-b7d2-498d-9905-d47d2fd6a124","block_type":"box","text":"10","page_number":199,"box":{"x":338,"y":290,"width":9,"height":5}},{"id":"2123ed14-4731-4c91-9949-7b85de6b05ca","block_type":"box","text":"Companies should establish robust risk management and internal control processes appropriate to the","page_number":199,"box":{"x":102,"y":309,"width":735,"height":11}},{"id":"59c14ef3-3056-4f9a-8f79-cbc43f58808c","block_type":"box","text":"company’s business, risk tolerance, and regulatory environment. A credible whistleblowing system for employees,","page_number":199,"box":{"x":69,"y":323,"width":810,"height":12}},{"id":"a0fe5336-d9fa-49e8-99ae-ab100c08435f","block_type":"box","text":"and potentially other stakeholders, can be a useful mechanism for ensuring that senior management and the board","page_number":199,"box":{"x":69,"y":338,"width":822,"height":12}},{"id":"42456751-c2ce-45ff-a16e-8b192a5405ce","block_type":"box","text":"are aware of potential misconduct or breaches in risk management and internal control processes.","page_number":199,"box":{"x":69,"y":353,"width":704,"height":12}},{"id":"e7bbcc89-9f1d-4ba5-a522-30eb9967e316","block_type":"box","text":"A comprehensive audit conducted by an independent audit firm contributes to investor confidence in the quality","page_number":199,"box":{"x":101,"y":372,"width":794,"height":11}},{"id":"fa708b42-bbe7-4ef1-bff9-d4d89cca2aac","block_type":"box","text":"of corporate reporting. It is helpful when the audit report gives some insight into the scope and focus of the audit, as","page_number":199,"box":{"x":69,"y":387,"width":836,"height":11}},{"id":"61ecd55c-8966-4957-99e8-77b8e22ca23c","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":199,"box":{"x":68,"y":402,"width":838,"height":11}},{"id":"52a66bb1-d0ba-4578-9533-1bdc7d7bf622","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":199,"box":{"x":69,"y":416,"width":773,"height":11}},{"id":"e9f84779-48d9-40f5-92a3-609e332ae04e","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":199,"box":{"x":69,"y":431,"width":804,"height":12}},{"id":"10ce180c-cca0-4e02-9338-d91053404390","block_type":"box","text":"audit. The audit committee should explain its position on auditor tenure and how it confirmed that the auditor","page_number":199,"box":{"x":69,"y":446,"width":780,"height":11}},{"id":"196e1ae5-0b24-44f7-aa3e-fbd14db324d9","block_type":"box","text":"remained independent.","page_number":199,"box":{"x":69,"y":461,"width":163,"height":11}},{"id":"7f17070a-f73e-47c2-808f-7f5747b9ca8a","block_type":"box","text":"We may vote against the election of the responsible directors if corporate reporting is insufficient or there are","page_number":199,"box":{"x":101,"y":480,"width":783,"height":11}},{"id":"790a503e-5b5f-4ee5-a523-02f0d7da508a","block_type":"box","text":"material misstatements in financial reports. In markets where relevant, we may vote against a proposal to approve","page_number":199,"box":{"x":69,"y":495,"width":819,"height":11}},{"id":"dbe9b0eb-a61b-44c4-acf2-616fec30a37f","block_type":"box","text":"the financial statements or the discharge of the board when we are concerned about the quality of corporate","page_number":199,"box":{"x":68,"y":509,"width":774,"height":12}},{"id":"6e490d13-f52d-41ac-87d7-03f23fc5f6fb","block_type":"box","text":"reporting or the audit. We may vote against proposals to appoint the auditor, ratify the audit report, or approve the","page_number":199,"box":{"x":69,"y":524,"width":816,"height":12}},{"id":"15a91f56-5418-44d8-815a-58b3a0a807f6","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":199,"box":{"x":69,"y":539,"width":779,"height":11}},{"id":"2d9ae810-ca97-43c3-b034-ac2cb66adaee","block_type":"box","text":"misstatements in financial reports and the board has not established reasonable remediation plans.","page_number":199,"box":{"x":69,"y":554,"width":718,"height":11}},{"id":"53b66e55-2894-49f2-b484-c90eedd25553","block_type":"box","text":"SHAREHOLDER RIGHTS AND PROTECTIONS","page_number":199,"box":{"x":329,"y":584,"width":319,"height":9}},{"id":"4ea131cb-3bbf-452c-86d7-d1be47ffd73b","block_type":"box","text":"General shareholder meetings","page_number":199,"box":{"x":69,"y":607,"width":217,"height":11}},{"id":"01015b90-63c2-498c-83d1-f64ed9f9c257","block_type":"box","text":"Companies normally have an annual general meeting of shareholders at which routine and non-routine items of","page_number":199,"box":{"x":102,"y":625,"width":792,"height":12}},{"id":"3bc07363-2bd8-48f8-844d-9f07d00a9dab","block_type":"box","text":"business are discussed and voted on by shareholders in attendance or submitting proxy votes. Companies should","page_number":199,"box":{"x":69,"y":640,"width":812,"height":11}},{"id":"64442072-7de6-4311-a499-b4f57967d6d2","block_type":"box","text":"disclose materials relevant to the shareholder meeting sufficiently in advance so that shareholders can take them","page_number":199,"box":{"x":69,"y":655,"width":813,"height":11}},{"id":"36d0309a-3580-4e4a-a473-168f4a659442","block_type":"box","text":"into consideration in their voting decisions. Many companies offer shareholders the option of participating in the","page_number":199,"box":{"x":70,"y":670,"width":801,"height":11}},{"id":"d3421a1d-d92f-44c4-aae1-122a2ba56a6f","block_type":"box","text":"meeting virtually which, whilst welcome, should not limit the rights of shareholders to participate as they would during","page_number":199,"box":{"x":69,"y":685,"width":841,"height":11}},{"id":"2fe2ee87-57a4-42e2-984f-3896b9a82820","block_type":"box","text":"an in-person meeting.","page_number":199,"box":{"x":69,"y":700,"width":152,"height":11}},{"id":"6aeaeb8d-80c7-4ed9-b0f0-bfa9ca535b34","block_type":"box","text":"We may vote against directors when materials related to the business of the shareholder meeting are not","page_number":199,"box":{"x":101,"y":718,"width":752,"height":12}},{"id":"d00b4afa-8ede-4e52-b1ea-a6da93325f6d","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":199,"box":{"x":70,"y":733,"width":821,"height":11}},{"id":"2c817699-afb8-4cf9-a356-76d458a0b543","block_type":"box","text":"may vote against directors if the format of the shareholder meeting does not accommodate reasonable shareholder","page_number":199,"box":{"x":69,"y":748,"width":825,"height":11}},{"id":"3b4b423d-bae1-4fe8-9325-06141e251e67","block_type":"box","text":"participation.","page_number":199,"box":{"x":70,"y":763,"width":91,"height":11}},{"id":"feb90922-ff50-49b6-b47c-5742820cd3c8","block_type":"box","text":"9","page_number":199,"box":{"x":69,"y":793,"width":4,"height":4}},{"id":"231171fd-8e5e-47e3-a58f-75058960c4ec","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Reporting Standards","page_number":199,"box":{"x":93,"y":792,"width":744,"height":11}},{"id":"38209ca1-3e74-4edb-8790-d20a8638853c","block_type":"box","text":"(IFRS) Foundation. Please refer to the IFRS website to learn more about the framework and standards S1","page_number":199,"box":{"x":94,"y":807,"width":748,"height":11}},{"id":"5d8b2113-1f28-4838-aa5b-bbc22c63881a","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":199,"box":{"x":94,"y":822,"width":778,"height":12}},{"id":"cc667352-f117-46d1-8c8f-f24af5f9ef41","block_type":"box","text":"Disclosures.”","page_number":199,"box":{"x":94,"y":838,"width":93,"height":8}},{"id":"8110921d-0800-45b0-835b-e214c9aacc16","block_type":"box","text":"10","page_number":199,"box":{"x":69,"y":856,"width":9,"height":4}},{"id":"57406f13-93e4-4a9c-abba-6bdd13112ee0","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":199,"box":{"x":93,"y":858,"width":810,"height":11}},{"id":"3b7c05d4-cb57-4bee-8910-eb2f53e0e6f6","block_type":"box","text":"See, for examples, https://www.ifrs.org/newsandevents/news/2025/06/ifrsfoundationpublishesjurisdictional\r\nprofiles-issb-standards/ and https://finance.ec.europa.eu/capital-markets-union-and-financial-markets/companyreporting\r\nandaditing/companreporting/corporatesstainabilitreportingen","page_number":199,"box":{"x":94,"y":866,"width":804,"height":12}},{"id":"a4cdd477-3fc8-4fa4-85a2-039fbe23ffcb","block_type":"box","text":"p/ p//p/p\r\nreporting-and-auditing/company-reporting/corporate-sustainability-reporting_en.","page_number":199,"box":{"x":94,"y":876,"width":564,"height":11}},{"id":"18c65145-8c95-4fb7-9f4c-0ae36b4681a8","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":199,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"cc9143cc-0cb5-45c0-8572-4b959d14d0ea","block_type":"box","text":"Global Engagement and Voting Guidelines | 12","page_number":199,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"46467d36-0cfc-4812-9635-a00bc5432255","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":199,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ad4c4e23-270b-4206-ad8c-fd1560aa4ada","block_type":"box","text":"Bylaw amendments","page_number":200,"box":{"x":69,"y":45,"width":141,"height":11}},{"id":"206e789d-a7a4-4e1c-8129-3bf1ce2bd3ee","block_type":"box","text":"We review bylaw amendments proposed by management on a case-by-case basis and will generally support","page_number":200,"box":{"x":101,"y":64,"width":766,"height":11}},{"id":"01a4a8cd-00cd-4e3e-afc5-5abdc20d874d","block_type":"box","text":"those that are aligned with the interests of minority shareholders. Any material changes to the bylaws should be","page_number":200,"box":{"x":68,"y":78,"width":800,"height":11}},{"id":"f7877ea9-8310-4f58-9973-856e1476c29b","block_type":"box","text":"explained in detail and put to a shareholder vote.","page_number":200,"box":{"x":69,"y":93,"width":349,"height":11}},{"id":"4adb7691-1e2f-46e0-85f3-79d5212f41ed","block_type":"box","text":"We may vote against bylaw amendments that reduce shareholder rights and protections or introduce additional","page_number":200,"box":{"x":101,"y":112,"width":790,"height":11}},{"id":"b099bf50-11dc-490e-8ec3-b704f241ee21","block_type":"box","text":"burdens. We may vote against directors if material changes are made to the bylaws without shareholder approval.","page_number":200,"box":{"x":69,"y":126,"width":810,"height":12}},{"id":"5e8e1b0b-1f6f-4661-8fdc-30b5224d7283","block_type":"box","text":"If not provided for in the relevant corporate law, company bylaws should allow shareholders, individually or as a","page_number":200,"box":{"x":102,"y":145,"width":790,"height":11}},{"id":"ce6b9e07-9497-4e15-b3b1-9a118c0f1c5f","block_type":"box","text":"group, with a meaningful shareholding, the right to call a special meeting of shareholders. The shareholding required","page_number":200,"box":{"x":68,"y":160,"width":831,"height":11}},{"id":"3d677019-0acc-4a93-8575-6b2ebc4c8cb6","block_type":"box","text":"to exercise this right should balance its utility with the cost to the company of holding special meetings.","page_number":200,"box":{"x":68,"y":175,"width":740,"height":11}},{"id":"53d8bd94-ab90-437f-b1aa-5848586d4e67","block_type":"box","text":"If not provided for in the relevant corporate law, company bylaws should allow shareholders, individually or as a","page_number":200,"box":{"x":102,"y":193,"width":790,"height":12}},{"id":"193cea8c-dc6b-422a-93fd-edba8cf5655c","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":200,"box":{"x":68,"y":208,"width":834,"height":12}},{"id":"91157b40-441d-4e40-92fc-9b09e4808665","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":200,"box":{"x":69,"y":223,"width":758,"height":12}},{"id":"9073cb15-0f56-4c4c-a771-d83d1fd5cb24","block_type":"box","text":"nomination process.","page_number":200,"box":{"x":69,"y":238,"width":143,"height":11}},{"id":"966f5514-b5f8-4ecc-bee3-f322990512f3","block_type":"box","text":"Whilst we would not use either of these rights ourselves, we see them as important accountability mechanisms.","page_number":200,"box":{"x":101,"y":257,"width":799,"height":11}},{"id":"41ae75d8-4bd4-42ca-b7b5-824f8b631169","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":200,"box":{"x":68,"y":272,"width":810,"height":11}},{"id":"7d58814a-7f23-451a-bc2a-055aeb1d89b6","block_type":"box","text":"Change of domicile","page_number":200,"box":{"x":69,"y":294,"width":139,"height":11}},{"id":"bb3043c7-dafd-46d5-bbb4-f5d9449c4642","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":200,"box":{"x":101,"y":313,"width":778,"height":11}},{"id":"392b4bc6-acff-4220-816d-50725b2b4f00","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":200,"box":{"x":69,"y":328,"width":766,"height":11}},{"id":"47faec6c-7caf-4ad7-9458-014db645efff","block_type":"box","text":"immaterial.","page_number":200,"box":{"x":70,"y":343,"width":77,"height":8}},{"id":"4a915be0-b0c6-48dc-99f7-fd008c7dea08","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":200,"box":{"x":101,"y":361,"width":777,"height":11}},{"id":"28909ed2-3f2f-4895-bdfb-d23aa9925bea","block_type":"box","text":"with our clients’ financial interests.","page_number":200,"box":{"x":68,"y":376,"width":249,"height":9}},{"id":"132f59eb-3d2e-45c2-8a53-6d88ebb20618","block_type":"box","text":"Changes to a company’s purpose or the nature of its business","page_number":200,"box":{"x":69,"y":398,"width":452,"height":11}},{"id":"6d64da76-99a9-4cce-b7bc-696f5eb44681","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":200,"box":{"x":102,"y":417,"width":803,"height":11}},{"id":"2dc65393-08f2-421d-8677-b303b20ffb5f","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":200,"box":{"x":70,"y":432,"width":829,"height":11}},{"id":"74331c01-9e38-4000-8613-8fb8fac80a74","block_type":"box","text":"on the suitability of a company for their investment strategy or portfolio.","page_number":200,"box":{"x":69,"y":447,"width":511,"height":11}},{"id":"b78d002f-ce6f-4922-9ed8-e98f89d24400","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":200,"box":{"x":101,"y":465,"width":792,"height":12}},{"id":"bca59214-04c8-4b5a-aadf-936ce4628773","block_type":"box","text":"the board has not provided a credible argument for change.","page_number":200,"box":{"x":68,"y":480,"width":424,"height":12}},{"id":"833c6e6e-e848-4940-a1c3-732b80335767","block_type":"box","text":"SHAREHOLDER PROPOSALS","page_number":200,"box":{"x":385,"y":510,"width":207,"height":9}},{"id":"76505f50-ede1-46a3-8a8c-7fe3d09e5aad","block_type":"box","text":"Shareholders in many markets, who meet certain eligibility criteria, have the right to submit proposals to the","page_number":200,"box":{"x":102,"y":529,"width":772,"height":11}},{"id":"a391f252-c62e-4a43-9c52-8d5f2e56fb6e","block_type":"box","text":"general shareholder meeting asking a company to take a particular course of action subject to the proposal being","page_number":200,"box":{"x":68,"y":544,"width":811,"height":11}},{"id":"49b7ff58-86d1-422e-be0d-ceb8eeea6970","block_type":"box","text":"supported by a majority of votes cast at the meeting. The topics raised can address a range of matters that may be","page_number":200,"box":{"x":69,"y":559,"width":824,"height":11}},{"id":"4a4d8937-ca12-44e2-8452-98424b8342a8","block_type":"box","text":"relevant to a company’s business.","page_number":200,"box":{"x":69,"y":574,"width":243,"height":11}},{"id":"89a75930-b00e-4873-9281-a99be2dcc949","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":200,"box":{"x":101,"y":592,"width":730,"height":11}},{"id":"b95f8e94-4f80-481b-b5e2-8331df38f6e0","block_type":"box","text":"company’s business and its current approach, whether the actions sought are consistent with shareholders’","page_number":200,"box":{"x":69,"y":607,"width":772,"height":11}},{"id":"a55a5759-04e3-4237-8b9f-79c60a055f5f","block_type":"box","text":"interests, and what impact the proposal being acted upon might have on financial performance.","page_number":200,"box":{"x":70,"y":622,"width":681,"height":11}},{"id":"f3044098-67e4-4f4b-888d-7cf05a76caaa","block_type":"box","text":"Our general approach where we have concerns about a company’s governance, disclosures or performance is to","page_number":200,"box":{"x":102,"y":641,"width":801,"height":11}},{"id":"c67cc8de-037c-4b3c-8652-45fd8313358e","block_type":"box","text":"engage to understand the apparent difference in perspective. If we are concerned a company is not acting in","page_number":200,"box":{"x":69,"y":656,"width":774,"height":11}},{"id":"692a5c42-9d94-40f2-836e-bfe14aba5bdd","block_type":"box","text":"shareholders’ financial interests, we may vote against the election of directors. We may support a relevant","page_number":200,"box":{"x":69,"y":670,"width":761,"height":12}},{"id":"a0265616-bf8c-456b-a74e-76648bd32d0a","block_type":"box","text":"shareholder proposal if doing so is aligned with our clients’ financial interests. We generally do not support","page_number":200,"box":{"x":69,"y":685,"width":764,"height":12}},{"id":"c37693c0-d3fd-43e7-bcdd-1f7a7905de01","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":200,"box":{"x":69,"y":700,"width":785,"height":11}},{"id":"7803c0cd-b610-4919-ac38-511251bcd6ff","block_type":"box","text":"operations, or are unrelated to how a company manages risk or generates financial returns.","page_number":200,"box":{"x":69,"y":715,"width":653,"height":11}},{"id":"e5f46c8d-be64-4391-878a-cd4299493c3b","block_type":"box","text":"BlackRock is subject to rules, regulations, agency guidance and contractual agreements that place restrictions","page_number":200,"box":{"x":102,"y":734,"width":788,"height":11}},{"id":"53934213-06e6-4d3a-bfc4-964f6a0c940e","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":200,"box":{"x":69,"y":748,"width":822,"height":12}},{"id":"c45bddb3-67c9-4485-b533-9597f7e0ac60","block_type":"box","text":"ability to submit shareholder proposals. We do not submit shareholder proposals but can vote, on behalf of clients","page_number":200,"box":{"x":69,"y":763,"width":817,"height":12}},{"id":"6e7caf8b-4843-452a-b5ec-c2e88e066e48","block_type":"box","text":"who authorize us to do so, on proposals put forth by others.","page_number":200,"box":{"x":68,"y":778,"width":428,"height":11}},{"id":"621e0417-cd19-45e9-b2e9-224edc20a976","block_type":"box","text":"CORPORATE POLITICAL ACTIVITIES","page_number":200,"box":{"x":359,"y":808,"width":260,"height":9}},{"id":"3e6b006c-3609-440e-90d1-79e3a71ebe32","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":200,"box":{"x":101,"y":827,"width":795,"height":11}},{"id":"d2fb4aa5-18e5-4e64-bebe-993a900324ad","block_type":"box","text":"in which they engage. When a corporation reports material financial risk related to policy and or regulatory changes,","page_number":200,"box":{"x":70,"y":842,"width":824,"height":11}},{"id":"0b97cbe2-15c7-4583-a159-904dad513bb7","block_type":"box","text":"BAIS may seek to understand how it is addressing the material risk identified. We seek to understand how","page_number":200,"box":{"x":70,"y":857,"width":757,"height":11}},{"id":"6703a3c9-ff71-4739-9c19-6f9ddf25d154","block_type":"box","text":"companies engage in corporate political activities and ensure that their participation is consistent with their public","page_number":200,"box":{"x":69,"y":872,"width":814,"height":11}},{"id":"143ac78f-90c2-4b5c-b620-077c88ab1a4b","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":200,"box":{"x":69,"y":887,"width":780,"height":11}},{"id":"c6c50aa7-f11e-4a80-a5a8-4533d259cee2","block_type":"box","text":"approach taken by management on corporate political activities as there can be reputational risks arising from","page_number":200,"box":{"x":69,"y":901,"width":786,"height":12}},{"id":"4666ba46-797f-4fe2-83d6-6bc4eee8823c","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":200,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"0c821b43-91f7-475c-b916-8daf4325732f","block_type":"box","text":"Global Engagement and Voting Guidelines | 13","page_number":200,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"0bb5e3a7-ad3b-441d-b20d-88e023077b9a","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":200,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7ae7eb52-1b7f-4bb4-8241-569657eee209","block_type":"box","text":"inconsistencies between a company’s policy engagement and stated policy positions. Companies should, as a","page_number":201,"box":{"x":70,"y":45,"width":786,"height":11}},{"id":"953a2393-e396-438a-b3d2-1291d3736b5d","block_type":"box","text":"minimum, meet all regulatory disclosure requirements on political activities. We may engage a company where we","page_number":201,"box":{"x":69,"y":60,"width":812,"height":11}},{"id":"6839b55d-76cc-4d32-b7b0-a7a8e94fdf0d","block_type":"box","text":"would like to better understand its approach to policy engagement, where relevant.","page_number":201,"box":{"x":68,"y":75,"width":590,"height":11}},{"id":"44241da9-b3e8-473e-ab26-c00336a7f907","block_type":"box","text":"To mitigate the risk of inconsistencies, companies may wish to assess the alignment between their policy","page_number":201,"box":{"x":101,"y":93,"width":753,"height":11}},{"id":"a2f215a5-ef74-48ef-a38c-abe8f8d712ab","block_type":"box","text":"priorities and the policy positions of the trade associations of which they are active members and any engagements","page_number":201,"box":{"x":70,"y":108,"width":823,"height":11}},{"id":"f9ca7169-812f-4560-85be-f62d28322710","block_type":"box","text":"undertaken by trade associations on behalf of members.","page_number":201,"box":{"x":69,"y":123,"width":404,"height":11}},{"id":"df04e4cd-0126-4ac3-a571-591b26114d97","block_type":"box","text":"We may support a relevant shareholder proposal, or vote against directors, where a company’s disclosures are","page_number":201,"box":{"x":101,"y":142,"width":793,"height":11}},{"id":"14458632-d27b-412c-9af3-4c0bff764e35","block_type":"box","text":"insufficient to address the material risk it has identified.","page_number":201,"box":{"x":70,"y":156,"width":400,"height":9}},{"id":"d8e74175-9219-45c9-a5ef-51f8d36eda24","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":201,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"8f8197ba-ca20-4f68-a846-c542d24ff8f2","block_type":"box","text":"Global Engagement and Voting Guidelines | 14","page_number":201,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"7919a26f-ee28-4ec9-afa2-89ccaf19226b","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":201,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"cf993c86-8598-4f5d-aa2b-d723a38ff414","block_type":"box","text":"MATERIAL SUSTAINABILITY- RELATED RISKS AND OPPORTUNITIES","page_number":202,"box":{"x":245,"y":45,"width":489,"height":9}},{"id":"78426751-2258-4014-9f73-55f284da305a","block_type":"box","text":"We seek to understand how companies manage the material risks and opportunities inherent in their business","page_number":202,"box":{"x":101,"y":64,"width":790,"height":11}},{"id":"409313e8-e6f0-4e1e-9b09-50aa7f7b122e","block_type":"box","text":"operations. In our experience, sustainability-related factors","page_number":202,"box":{"x":69,"y":78,"width":418,"height":12}},{"id":"30dcbeea-d919-456e-bb9e-6dacd9e9eccb","block_type":"box","text":"11","page_number":202,"box":{"x":488,"y":79,"width":9,"height":4}},{"id":"0da068f7-5739-44f6-92c3-73f1c05a7879","block_type":"box","text":"that are relevant to a company’s business or material to","page_number":202,"box":{"x":502,"y":79,"width":402,"height":11}},{"id":"f0c2db0d-8bdb-4a89-9eb9-60de9adbd9d1","block_type":"box","text":"its financial performance, are generally operational considerations embedded into day-to-day management systems.","page_number":202,"box":{"x":70,"y":93,"width":824,"height":12}},{"id":"05f438d8-630d-44e2-a139-f9ac070640b2","block_type":"box","text":"Certain sustainability issues may also inform long-term strategic planning, for example, investing in product","page_number":202,"box":{"x":69,"y":108,"width":766,"height":11}},{"id":"e498fc67-743b-4207-a957-e385797b9085","block_type":"box","text":"innovation in anticipation of changing consumer demand or adapting supply chains in response to changing","page_number":202,"box":{"x":70,"y":123,"width":764,"height":11}},{"id":"02ce3c2a-21c4-4fe1-8397-6a35c7cac4b9","block_type":"box","text":"regulatory requirements.","page_number":202,"box":{"x":69,"y":138,"width":174,"height":11}},{"id":"32ff1766-8fc5-4e80-82d2-4a05a6e88e05","block_type":"box","text":"We recognize that the specific sustainability-related factors that may be financially material or business relevant","page_number":202,"box":{"x":101,"y":156,"width":798,"height":12}},{"id":"2b0838e8-be03-4c01-b9a1-2e297c074981","block_type":"box","text":"will vary by company business model, sector, key markets, and time horizon, amongst other considerations. From","page_number":202,"box":{"x":68,"y":172,"width":809,"height":11}},{"id":"3ae5941d-bdb6-4998-857a-7994237c7f4e","block_type":"box","text":"company disclosures and our engagement, we aim to understand how management is identifying, assessing and","page_number":202,"box":{"x":69,"y":186,"width":803,"height":12}},{"id":"0cdeade6-d0f8-4eb3-89bb-0216fa6e2a12","block_type":"box","text":"integrating material sustainability-related risks and opportunities into their business decision-making and practices.","page_number":202,"box":{"x":70,"y":201,"width":820,"height":11}},{"id":"e474fcdc-0248-4139-bce6-f47a5075ad53","block_type":"box","text":"Doing so helps us undertake a more holistic assessment of a company’s potential financial performance and the","page_number":202,"box":{"x":70,"y":216,"width":808,"height":11}},{"id":"248eb0f2-b491-4934-be4b-dc34cc132167","block_type":"box","text":"likely risk-adjusted returns of an investment.","page_number":202,"box":{"x":70,"y":231,"width":313,"height":11}},{"id":"1f1f2ae7-da47-4f62-a435-b7f99cc9c6d7","block_type":"box","text":"We may vote against directors or support a relevant shareholder proposal if we have concerns about how a","page_number":202,"box":{"x":101,"y":249,"width":764,"height":12}},{"id":"652072c8-d4d7-4ab8-9f46-eaec6612dbe3","block_type":"box","text":"company is managing or disclosing its approach to material sustainability-related risks that may impact financial","page_number":202,"box":{"x":69,"y":264,"width":798,"height":12}},{"id":"d2cc7b1f-f752-4762-8013-af0a410478eb","block_type":"box","text":"returns.","page_number":202,"box":{"x":69,"y":280,"width":54,"height":8}},{"id":"ebfe655c-4193-4791-96aa-c03febc8231c","block_type":"box","text":"KEY STAKEHOLDERS","page_number":202,"box":{"x":414,"y":309,"width":151,"height":9}},{"id":"8fb3d9ec-b74e-491e-8b56-c8f8cfb6ff6b","block_type":"box","text":"In our view, companies should understand and take into consideration the interests of the various parties on","page_number":202,"box":{"x":102,"y":328,"width":774,"height":11}},{"id":"2bed7932-d317-46ee-b3c4-941d54ef86fd","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":202,"box":{"x":68,"y":343,"width":826,"height":11}},{"id":"b1b07c95-3cbc-44b6-8efe-67d4ec142f7c","block_type":"box","text":"what is material to their business and long-term financial performance. For many companies, key stakeholders","page_number":202,"box":{"x":68,"y":358,"width":790,"height":11}},{"id":"c267eafe-1e3a-450e-b04a-82ec3f056f8e","block_type":"box","text":"include employees, business partners (such as suppliers and distributors), clients and consumers, regulators, and","page_number":202,"box":{"x":70,"y":373,"width":817,"height":11}},{"id":"3df4daa3-ba32-43f4-96a4-f7bb2c9bfc4e","block_type":"box","text":"the communities in which they operate. Companies that appropriately balance the interests of investors and other","page_number":202,"box":{"x":68,"y":387,"width":813,"height":12}},{"id":"e30de58a-9b49-4227-831c-7e4e1a4e9288","block_type":"box","text":"stakeholders are, in our experience, more likely to be financially resilient over time.","page_number":202,"box":{"x":69,"y":402,"width":592,"height":12}},{"id":"5b581477-29cb-4232-8e1f-631264123334","block_type":"box","text":"CLIMATE AND DECARBONIZATION INVESTMENT OBJECTIVES","page_number":202,"box":{"x":265,"y":432,"width":448,"height":9}},{"id":"2407e58d-210a-466f-888a-8fae65b88fb4","block_type":"box","text":"Certain active BlackRock funds have climate and decarbonization objectives in addition to financial objectives.","page_number":202,"box":{"x":102,"y":451,"width":784,"height":11}},{"id":"66d078fe-c6f9-4878-bac9-acc3a9d3c20c","block_type":"box","text":"Consistent with the objectives of those investment strategies, our stewardship activity in relation to the holdings in","page_number":202,"box":{"x":69,"y":466,"width":818,"height":11}},{"id":"c58ea712-1845-4e59-bbe0-870238bca859","block_type":"box","text":"those funds differs in some respects from BAIS’ benchmark guidelines, which are described above. Specifically, for","page_number":202,"box":{"x":68,"y":481,"width":823,"height":11}},{"id":"af139908-779c-4d81-9365-9b8f3467e904","block_type":"box","text":"those funds’ holdings, we look to investee companies to demonstrate that they are aligned with a decarbonization","page_number":202,"box":{"x":68,"y":496,"width":814,"height":11}},{"id":"abf4f610-96a7-410d-b75e-c4605965a4ec","block_type":"box","text":"pathway that means their business model would be viable in a low-carbon economy,","page_number":202,"box":{"x":70,"y":511,"width":594,"height":11}},{"id":"2eb037e9-99d8-44ca-aadf-d308b30a0bdf","block_type":"box","text":"i.e.","page_number":202,"box":{"x":672,"y":511,"width":20,"height":9}},{"id":"cf2b1c81-dafa-4ba1-8125-b86ec4a40997","block_type":"box","text":", one in which global","page_number":202,"box":{"x":694,"y":511,"width":144,"height":11}},{"id":"58cca1f2-b6f4-4581-b203-99cd37beeade","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":202,"box":{"x":68,"y":526,"width":821,"height":11}},{"id":"21a1f68a-4849-4534-b8e7-954b29478939","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":202,"box":{"x":69,"y":540,"width":839,"height":12}},{"id":"7332f4fe-340b-42ea-87f5-5028869eca8b","block_type":"box","text":"accounts, these guidelines are only implemented upon explicit selection and approval by the applicable fund board or","page_number":202,"box":{"x":69,"y":555,"width":837,"height":12}},{"id":"050910c1-cc7d-4f29-8679-50c9237f0058","block_type":"box","text":"client.","page_number":202,"box":{"x":69,"y":570,"width":41,"height":9}},{"id":"0119f4a3-eb87-49d2-91b3-73d7a1aab282","block_type":"box","text":"These decarbonization stewardship guidelines focus on companies which produce goods and services that","page_number":202,"box":{"x":101,"y":589,"width":761,"height":11}},{"id":"40d3dd98-3dd1-43d5-9ee0-8d81d4b1c5c7","block_type":"box","text":"contribute to real world decarbonization or have a carbon intensive business model and face outsized impacts from","page_number":202,"box":{"x":69,"y":604,"width":821,"height":11}},{"id":"f8a79b90-18e1-4e90-bf88-5a43fd59fd54","block_type":"box","text":"the low carbon transition, based on reported and estimated scopes 1, 2, and 3 greenhouse gas emissions. These","page_number":202,"box":{"x":68,"y":619,"width":817,"height":11}},{"id":"d0cbdbb2-c353-4241-ad66-d649fd63bbdc","block_type":"box","text":"companies should provide disclosures that set out their governance, strategy, risk management processes and","page_number":202,"box":{"x":69,"y":634,"width":792,"height":11}},{"id":"75306997-9515-4feb-8b1c-ce56367e0834","block_type":"box","text":"metrics and targets relevant to decarbonization. It is helpful to investors’ understanding when these disclosures","page_number":202,"box":{"x":69,"y":648,"width":799,"height":12}},{"id":"069c3adb-7dda-4757-87de-f2322457b034","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":202,"box":{"x":70,"y":663,"width":812,"height":11}},{"id":"51e03432-c457-4168-8a4b-7fda4f11f0bc","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":202,"box":{"x":68,"y":678,"width":831,"height":11}},{"id":"46aa45f7-8abd-406c-bd8d-e9790a0e4266","block_type":"box","text":"1 and 2 emissions.","page_number":202,"box":{"x":70,"y":693,"width":135,"height":9}},{"id":"54c02c7c-de05-4c3a-b8ae-c92ac00b5430","block_type":"box","text":"Under these climate- and decarbonization-specific guidelines, BAIS may recommend a vote against directors or","page_number":202,"box":{"x":102,"y":711,"width":788,"height":12}},{"id":"5a7f86c9-0b3c-480e-8e8b-7ac79066698a","block_type":"box","text":"support for a relevant shareholder proposal if a company does not appear to be adequately acting to address or","page_number":202,"box":{"x":69,"y":726,"width":800,"height":12}},{"id":"6498f220-5f49-426a-9f6f-87b91072705e","block_type":"box","text":"disclosing material climate-related risks, consistent with the parameters set out in these climate-and decarbonization","page_number":202,"box":{"x":69,"y":741,"width":839,"height":12}},{"id":"2ed5ab0b-c5b2-4c42-8993-fe3b7c6446a6","block_type":"box","text":"specific guidelines. We may recommend supporting shareholder proposals seeking information relevant to a","page_number":202,"box":{"x":69,"y":756,"width":771,"height":11}},{"id":"daa7493e-dc7e-4081-a726-73bb513e4a64","block_type":"box","text":"11","page_number":202,"box":{"x":69,"y":786,"width":9,"height":4}},{"id":"0868e379-0dd4-49f2-a943-ea0de4d49757","block_type":"box","text":"By material sustainability-related risks and opportunities, we mean the drivers of risk and financial value creation in","page_number":202,"box":{"x":84,"y":785,"width":822,"height":11}},{"id":"2190031c-ac05-44e2-9c24-818ca4b75d8a","block_type":"box","text":"a company’s business model that have an environmental or social dependency or impact. Examples of environmental","page_number":202,"box":{"x":69,"y":800,"width":835,"height":12}},{"id":"8f46aa2e-3499-4e84-a6b2-5221bf708381","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":202,"box":{"x":70,"y":816,"width":827,"height":11}},{"id":"14112804-cc44-4ac6-8fe4-a6f27bafdad0","block_type":"box","text":"issues include, but are not limited to, human capital management, impacts on the communities in which a company","page_number":202,"box":{"x":70,"y":831,"width":826,"height":11}},{"id":"e28a6850-48d3-4c93-ae55-ec1d29571422","block_type":"box","text":"operates, customer loyalty, and relationships with regulators. It is our view that well-managed companies will","page_number":202,"box":{"x":69,"y":846,"width":773,"height":11}},{"id":"aa79cca2-b868-460b-a55e-afc3d6cd0d64","block_type":"box","text":"effectively evaluate and manage material sustainability-related risks and opportunities relevant to their businesses.","page_number":202,"box":{"x":69,"y":861,"width":823,"height":11}},{"id":"311ffd45-8185-480c-92c0-3d13b04bf2bd","block_type":"box","text":"Governance is the core means by which boards can oversee the creation of durable financial value over time.","page_number":202,"box":{"x":69,"y":876,"width":777,"height":11}},{"id":"c0cfd108-9caf-4362-afc1-837e50e67c9b","block_type":"box","text":"Appropriate risk oversight of business-relevant and material sustainability-related considerations is a component of a","page_number":202,"box":{"x":68,"y":891,"width":833,"height":11}},{"id":"4a0521da-93a7-40ab-aa5b-1d498459d52e","block_type":"box","text":"sound governance framework.","page_number":202,"box":{"x":69,"y":906,"width":212,"height":12}},{"id":"a0711e91-5441-4a11-9c96-343bf3264870","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":202,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"635b17d1-e271-4a3a-b4b5-9d3b1975a8c7","block_type":"box","text":"Global Engagement and Voting Guidelines | 15","page_number":202,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"4f785cbf-6a25-4181-b9f8-e6a7664f3c6e","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":202,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"92693e4d-d756-4806-b321-0031ae1744a7","block_type":"box","text":"company’s stated low-carbon transition strategy or targets that the company does not currently provide and that","page_number":203,"box":{"x":69,"y":45,"width":798,"height":11}},{"id":"4ebb87c5-c2d7-44d5-b50c-f161d67637e6","block_type":"box","text":"would be helpful to investment decision-making. We would not recommend support for shareholder proposals that","page_number":203,"box":{"x":68,"y":59,"width":814,"height":12}},{"id":"3bf4786b-ac48-470b-aab6-5c044472e7f8","block_type":"box","text":"seek to constrain board or management decision-making or direct specific business or strategic decisions. As under","page_number":203,"box":{"x":69,"y":74,"width":828,"height":12}},{"id":"f0a90146-d398-472b-88fc-800999eec855","block_type":"box","text":"the BAIS benchmark approach, the active portfolio managers are ultimately responsible for voting consistent with","page_number":203,"box":{"x":68,"y":89,"width":807,"height":12}},{"id":"81c4654d-fe89-4b7c-91bc-e0f57d3247c9","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":203,"box":{"x":68,"y":104,"width":832,"height":11}},{"id":"d6597fb7-797d-4ca7-9e7a-504efc99a381","block_type":"box","text":"climate risk and the energy transition is undertaken in line with BAIS’ benchmark guidelines.","page_number":203,"box":{"x":69,"y":119,"width":658,"height":11}},{"id":"22cc6718-51d4-4e11-8b6b-51b701a0211d","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":203,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"b8adf41b-d6a5-4a0d-ab35-263a59c39572","block_type":"box","text":"Global Engagement and Voting Guidelines | 16","page_number":203,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"0dcb6730-756e-4998-b41c-7ae0329cac04","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":203,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ad4389e7-68db-4628-b565-2b4a5c873c55","block_type":"box","text":"APPENDIX 1: HOW WE FULFILL AND OVERSEE OUR INVESTMENT STEWARDSHIP RESPONSIBILITIES FOR NON","page_number":204,"box":{"x":83,"y":45,"width":812,"height":9}},{"id":"6d302e91-8bc0-45a7-84ad-0e2e7ecf6493","block_type":"box","text":"INDEX EQUITY INVESTMENT STRATEGIES","page_number":204,"box":{"x":338,"y":60,"width":302,"height":10}},{"id":"dca9fb02-c710-4d29-bacc-924868be3ba1","block_type":"box","text":"Oversight","page_number":204,"box":{"x":69,"y":83,"width":68,"height":11}},{"id":"689b5c4c-796c-481a-98fb-837c67739d73","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":204,"box":{"x":101,"y":101,"width":793,"height":11}},{"id":"a0676120-4287-485d-a523-f67ba60c06fe","block_type":"box","text":"accordance with the BlackRock Active Investment Stewardship Global Engagement and Voting Guidelines (the","page_number":204,"box":{"x":69,"y":116,"width":778,"height":11}},{"id":"fe8a1900-e046-4aad-beba-0df3fe5845fd","block_type":"box","text":"“Guidelines”), which require the application of professional judgment and consideration of each company’s unique","page_number":204,"box":{"x":70,"y":131,"width":814,"height":11}},{"id":"c257a816-a1d7-43b2-aa35-5ad788f0d766","block_type":"box","text":"circumstances, as well as input from active investors. BAIS is independent from BlackRock Investment Stewardship","page_number":204,"box":{"x":69,"y":146,"width":825,"height":11}},{"id":"f2bf5a11-6893-4c99-addb-0cac24ee385e","block_type":"box","text":"in our engagement and voting activities, reporting lines, and oversight.","page_number":204,"box":{"x":70,"y":161,"width":500,"height":11}},{"id":"f55c8e08-9d7f-4a7c-b38c-36e5462e294e","block_type":"box","text":"The Stewardship Leaders Group, comprised of senior active investors and other relevant stakeholders in","page_number":204,"box":{"x":101,"y":179,"width":744,"height":11}},{"id":"44dac8d6-4e7d-4bb2-9591-4b3a09b56c00","block_type":"box","text":"BlackRock’s legal, public policy, sustainability and communications teams, helps shape the firm’s approach to","page_number":204,"box":{"x":70,"y":194,"width":786,"height":11}},{"id":"74c25740-ecc8-4d03-ae5f-8310472d3b45","block_type":"box","text":"investment stewardship on non-index equity investment strategies. The Group may advise on and review amendments","page_number":204,"box":{"x":70,"y":209,"width":839,"height":11}},{"id":"c6582316-fd53-4874-9d7d-795048844a47","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":204,"box":{"x":68,"y":224,"width":822,"height":11}},{"id":"abdd2fa6-86d0-4479-a403-1bd46305d094","block_type":"box","text":"relevant active equity investors.","page_number":204,"box":{"x":69,"y":239,"width":223,"height":11}},{"id":"1f20b571-18aa-4d20-b5d7-184ea4d5d581","block_type":"box","text":"BAIS carries out engagement with companies in collaboration with active investment colleagues, executes proxy","page_number":204,"box":{"x":102,"y":257,"width":797,"height":12}},{"id":"919ce791-a23a-4269-b04c-6cf5e64ad954","block_type":"box","text":"votes, and conducts vote operations (including maintaining records of votes cast) in a manner consistent with the","page_number":204,"box":{"x":68,"y":272,"width":810,"height":11}},{"id":"9d1ce8ea-2e44-4486-85d5-a384e8ddc390","block_type":"box","text":"Guidelines. BAIS also conducts research on corporate governance issues and participates in industry discussions to","page_number":204,"box":{"x":69,"y":287,"width":832,"height":11}},{"id":"f54d37b7-a4b7-43aa-b14f-37ab17987c74","block_type":"box","text":"contribute to and keep abreast of important developments in the corporate governance field. BAIS may use third","page_number":204,"box":{"x":69,"y":302,"width":801,"height":11}},{"id":"792ecd28-5355-4b50-bb5e-c3d668fac664","block_type":"box","text":"parties for certain of the foregoing activities and performs oversight of those third parties (see “Use and oversight of","page_number":204,"box":{"x":70,"y":317,"width":836,"height":11}},{"id":"5f4ef19f-0f70-40ce-8bbd-27986161c749","block_type":"box","text":"third-party vote services providers” below).","page_number":204,"box":{"x":68,"y":332,"width":305,"height":11}},{"id":"912e51c8-bdcd-4f8d-8722-67d6c1936696","block_type":"box","text":"Voting guidelines and vote execution","page_number":204,"box":{"x":68,"y":354,"width":269,"height":11}},{"id":"fe984518-cc6c-44d4-b5ef-0964312dfff8","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":204,"box":{"x":102,"y":373,"width":790,"height":11}},{"id":"530eaf7b-28e2-46c1-9e61-88fda1208d86","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":204,"box":{"x":69,"y":387,"width":838,"height":12}},{"id":"7d221df7-06ec-4fa5-bfe9-c9dd779083cd","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":204,"box":{"x":69,"y":402,"width":831,"height":12}},{"id":"abc51917-7614-472d-aa44-47f5235d24ce","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":204,"box":{"x":68,"y":417,"width":809,"height":12}},{"id":"87531034-6310-41ca-b8ca-a56dc0b834e4","block_type":"box","text":"judgment, and without regard to the relationship of the issuer (or any shareholder proponent or dissident","page_number":204,"box":{"x":67,"y":432,"width":749,"height":11}},{"id":"2dafb28e-46b3-4767-a397-f2244090d4eb","block_type":"box","text":"shareholder) to the Fund, the Fund’s affiliates (if any), BlackRock or BlackRock’s affiliates, or BlackRock employees","page_number":204,"box":{"x":69,"y":447,"width":825,"height":11}},{"id":"b6ef17ca-2c38-4606-82ce-9a8c5402f1cc","block_type":"box","text":"(see “Conflicts management policies and procedures,” below).","page_number":204,"box":{"x":69,"y":462,"width":445,"height":11}},{"id":"f49fa268-46ca-489f-ba5f-1dec7e9783aa","block_type":"box","text":"When exercising voting rights, BAIS will normally vote on specific proxy issues in accordance with the Guidelines,","page_number":204,"box":{"x":101,"y":480,"width":803,"height":12}},{"id":"4e0f0782-d837-4bee-8a9a-462416a56d1e","block_type":"box","text":"although portfolio managers have the right to vote differently on their holdings if they determine doing so is more","page_number":204,"box":{"x":69,"y":495,"width":806,"height":12}},{"id":"63e229d2-fd6d-4110-9a7a-d500b566c140","block_type":"box","text":"aligned with the investment objective and financial interests of clients invested in the funds they manage.","page_number":204,"box":{"x":69,"y":510,"width":752,"height":11}},{"id":"2556a432-5541-476d-aa1a-f54b31a4c719","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":204,"box":{"x":101,"y":529,"width":782,"height":11}},{"id":"8914504a-61f5-4472-9651-c7a52464f4ab","block_type":"box","text":"context of the individual circumstances of each company and the specific issue under review. As such, the Guidelines","page_number":204,"box":{"x":69,"y":544,"width":837,"height":11}},{"id":"2109db76-2874-4293-9c45-4dbd2dda9801","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":204,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"1c10304f-035d-4c27-8e80-acd90b62f66a","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":204,"box":{"x":68,"y":574,"width":838,"height":11}},{"id":"5b8b81be-c582-4ab5-b48b-94d0c7a743e2","block_type":"box","text":"Guidelines are reviewed annually and updated as necessary to reflect changes in market practices, developments in","page_number":204,"box":{"x":69,"y":588,"width":829,"height":12}},{"id":"68d8b7fb-49b1-4e0d-86e9-55bb5518843a","block_type":"box","text":"corporate governance and feedback from companies and clients. In this way, BAIS aims to maintain policies that","page_number":204,"box":{"x":69,"y":603,"width":802,"height":11}},{"id":"a746bacb-62a6-418f-9bbe-2401d6b75551","block_type":"box","text":"explain our approach to governance practices most aligned with clients’ long-term financial interests.","page_number":204,"box":{"x":69,"y":618,"width":718,"height":11}},{"id":"2f2d77c7-1ee7-4c8e-81b4-432b4db21002","block_type":"box","text":"In certain markets, proxy voting involves logistical issues which can affect BAIS’ ability to vote such proxies, as","page_number":204,"box":{"x":102,"y":637,"width":792,"height":11}},{"id":"174194b7-f7f3-444d-a249-3a9317161499","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":204,"box":{"x":68,"y":652,"width":791,"height":11}},{"id":"deff6160-89c2-4b78-acdc-03fa73b4e252","block_type":"box","text":"shareholder meetings; ii) restrictions on a foreigner’s ability to exercise votes; iii) requirements to vote proxies in","page_number":204,"box":{"x":69,"y":666,"width":805,"height":12}},{"id":"ab74d7d7-8253-4f5e-876a-b36229a3ce13","block_type":"box","text":"person; iv) “share-blocking” (requirements that investors who exercise their voting rights surrender the right to","page_number":204,"box":{"x":70,"y":682,"width":784,"height":11}},{"id":"2507ec27-d03b-4ff2-a12e-2cea48760f0e","block_type":"box","text":"dispose of their holdings from the point at which votes are submitted until after the shareholder meeting has","page_number":204,"box":{"x":69,"y":696,"width":775,"height":11}},{"id":"2b4f7336-88b9-479e-b206-34819dcabf63","block_type":"box","text":"occurred); v) potential difficulties in translating the proxy; vi) regulatory constraints; and vii) requirements to provide","page_number":204,"box":{"x":69,"y":711,"width":824,"height":11}},{"id":"7ced5d2d-171f-4cd4-8b34-feeebc239fdc","block_type":"box","text":"local agents with powers of attorney to facilitate voting instructions. We are not supportive of impediments to the","page_number":204,"box":{"x":70,"y":726,"width":806,"height":11}},{"id":"b9e215c0-4fe4-4937-9339-679e26af23e8","block_type":"box","text":"exercise of voting rights such as share-blocking or overly burdensome administrative requirements.","page_number":204,"box":{"x":69,"y":741,"width":704,"height":11}},{"id":"4d3bcb1d-47cf-44fb-bb83-af6e16cbffa1","block_type":"box","text":"BlackRock votes proxies in these situations on a “best-efforts” basis. In addition, BAIS may determine that it is","page_number":204,"box":{"x":102,"y":759,"width":796,"height":12}},{"id":"3b007e73-3463-4fef-b2cd-581dc7e1aa37","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":204,"box":{"x":68,"y":774,"width":799,"height":12}},{"id":"05e7f196-8d6c-4226-b815-a89f81ee6063","block_type":"box","text":"(including but not limited to opportunity costs associated with share-blocking constraints) associated with exercising","page_number":204,"box":{"x":69,"y":789,"width":829,"height":11}},{"id":"ae437e8e-25e3-4172-90cc-88904c10cc19","block_type":"box","text":"a vote are expected to outweigh the benefit the client would derive by voting on the proposal.","page_number":204,"box":{"x":69,"y":804,"width":661,"height":11}},{"id":"1cf9cba4-7ecd-4f94-aa85-784e65eeb9a1","block_type":"box","text":"Voting Choice","page_number":204,"box":{"x":68,"y":826,"width":101,"height":12}},{"id":"353be6f2-2ca6-426c-9402-f8a8ede803c1","block_type":"box","text":"BlackRock offers Voting Choice, a program that provides eligible clients with more opportunities to participate in","page_number":204,"box":{"x":102,"y":845,"width":800,"height":11}},{"id":"0e6f87c3-fa23-4435-bccf-665dcd7ed737","block_type":"box","text":"the proxy voting process where legally and operationally viable.","page_number":204,"box":{"x":68,"y":860,"width":447,"height":11}},{"id":"db2caf97-564a-476f-96b5-045a08b79f45","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":204,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"39db4eea-7ba9-4fd5-a42e-dbd952d6e59e","block_type":"box","text":"Global Engagement and Voting Guidelines | 17","page_number":204,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"b97cf0b1-fab0-4268-a18a-99d887a48e4b","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":204,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"22c7161f-fdfb-460d-93d8-8f8282296210","block_type":"box","text":"Voting Choice is currently available for eligible clients invested in certain institutional pooled funds in the U.S.,","page_number":205,"box":{"x":101,"y":45,"width":786,"height":11}},{"id":"1f7567ac-eae3-4e1c-a206-d04584eb0773","block_type":"box","text":"UK, and Canada that use systematic active equity (SAE) and multi-asset strategies. In addition, institutional clients in","page_number":205,"box":{"x":70,"y":60,"width":834,"height":11}},{"id":"8841b809-c8ae-4589-a82e-63c3ee268293","block_type":"box","text":"separately managed accounts (SMAs) are eligible for BlackRock Voting Choice regardless of their investment","page_number":205,"box":{"x":69,"y":74,"width":774,"height":12}},{"id":"6b056745-83e1-4da8-bd85-b08dc9a70bca","block_type":"box","text":"strategies.","page_number":205,"box":{"x":69,"y":89,"width":74,"height":12}},{"id":"850be16f-409d-40dc-a9bc-49ae9e079851","block_type":"box","text":"12","page_number":205,"box":{"x":145,"y":90,"width":9,"height":4}},{"id":"df48c1f7-2cae-4454-a6ca-b604d188f620","block_type":"box","text":"As a result, the shares attributed to BlackRock in company share registers may be voted differently depending","page_number":205,"box":{"x":101,"y":108,"width":788,"height":11}},{"id":"85b5810b-ca37-4253-a972-31974381d108","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":205,"box":{"x":69,"y":123,"width":834,"height":10}},{"id":"f410b651-89d3-4b9b-9f42-c9c368218f75","block_type":"box","text":"with a third-party policy, or have elected to vote shares in accordance with their own policy. Our clients have greater","page_number":205,"box":{"x":68,"y":138,"width":823,"height":11}},{"id":"e20cb509-55e7-4af3-9048-ac52df0a8f5d","block_type":"box","text":"control over proxy voting because of Voting Choice.","page_number":205,"box":{"x":69,"y":152,"width":360,"height":12}},{"id":"3d3f63d1-a251-44d8-8a83-eb52dc2d5eb0","block_type":"box","text":"13","page_number":205,"box":{"x":431,"y":153,"width":9,"height":4}},{"id":"47e59ffd-45f3-4d42-b6c6-040acabcac39","block_type":"box","text":"Use and oversight of third-party vote services providers","page_number":205,"box":{"x":69,"y":175,"width":403,"height":11}},{"id":"4453aca5-3e32-460e-9713-a197090e346a","block_type":"box","text":"Third-party vote services providers – or proxy research firms – provide research and recommendations on proxy","page_number":205,"box":{"x":101,"y":193,"width":794,"height":12}},{"id":"d6e14f44-5c05-4465-a885-b2f8d01e0639","block_type":"box","text":"votes, as well as voting infrastructure. BlackRock contracts primarily with the vote services provider ISS and","page_number":205,"box":{"x":68,"y":208,"width":770,"height":12}},{"id":"0d53e164-e4db-45ab-a476-6d0cab87247d","block_type":"box","text":"leverages its online platform to supply research and support voting, record keeping, and reporting processes. We","page_number":205,"box":{"x":70,"y":223,"width":807,"height":12}},{"id":"0a0798ea-725d-4061-8aad-621f3b4224b4","block_type":"box","text":"also use Glass Lewis’ research and analysis as an input into our voting process. It is important to note that, although","page_number":205,"box":{"x":69,"y":238,"width":839,"height":11}},{"id":"9c5671c3-7bc8-466b-96b7-948fc09569fb","block_type":"box","text":"proxy research firms provide important data and analysis, BAIS does not rely solely on their information or follow their","page_number":205,"box":{"x":70,"y":253,"width":839,"height":11}},{"id":"14142c7c-3a10-4914-9c42-09a83d38b0da","block_type":"box","text":"voting recommendations. A company’s disclosures, our engagements and voting, investment colleagues’ insights and","page_number":205,"box":{"x":68,"y":268,"width":840,"height":11}},{"id":"04843f8b-ba9c-4eb2-8b68-8b038148cc99","block_type":"box","text":"our Guidelines are important inputs into our voting decisions on behalf of clients.","page_number":205,"box":{"x":69,"y":283,"width":578,"height":11}},{"id":"2110bc55-f07a-4fed-9fc5-fe9b8c8510db","block_type":"box","text":"Given the large universe of actively held companies, BAIS employs the proxy services provider to streamline the","page_number":205,"box":{"x":102,"y":301,"width":795,"height":12}},{"id":"5729a61c-2745-4dad-a790-9507152f8d3a","block_type":"box","text":"voting process by making voting recommendations based on BAIS’ Guidelines when the items on a shareholder","page_number":205,"box":{"x":68,"y":316,"width":795,"height":12}},{"id":"7d21e22f-936c-4569-9bfe-b55bd533d86c","block_type":"box","text":"meeting agenda are routine. Agenda items that are not routine are referred back to BAIS to assess, escalate as","page_number":205,"box":{"x":69,"y":331,"width":799,"height":11}},{"id":"46dfaeaa-e574-4f35-bba9-0fe8c8ed3f9f","block_type":"box","text":"necessary to the relevant portfolio managers and vote. BAIS reviews and can override the recommendations of the","page_number":205,"box":{"x":69,"y":346,"width":819,"height":11}},{"id":"53fed91e-d12a-4f94-b3c7-413a5e76b0dd","block_type":"box","text":"vote services provider at any time prior to the vote deadline. Both BAIS and the vote services provider actively","page_number":205,"box":{"x":68,"y":361,"width":785,"height":11}},{"id":"11fcd857-1b41-4ba7-b7d3-523dc651c653","block_type":"box","text":"monitor securities filings, research reports, company announcements, and direct communications from companies to","page_number":205,"box":{"x":69,"y":376,"width":837,"height":11}},{"id":"789c1a22-d299-4d70-87be-97c9651a6a4c","block_type":"box","text":"ensure awareness of supplemental disclosures and proxy materials that may require a modification of votes.","page_number":205,"box":{"x":69,"y":390,"width":775,"height":12}},{"id":"d42ed252-97e9-48ca-bd25-33408c12df7b","block_type":"box","text":"BAIS closely monitors the third-party vote services providers we contract with to ensure that they are meeting our","page_number":205,"box":{"x":102,"y":409,"width":807,"height":11}},{"id":"75164ce9-77e5-46da-bbcb-64baf2db3dd9","block_type":"box","text":"service level expectations and have effective policies and procedures in place to manage potential conflicts of","page_number":205,"box":{"x":69,"y":424,"width":788,"height":11}},{"id":"1f37ded5-37e1-4582-977c-d68fb8bd6186","block_type":"box","text":"interest. Our oversight of service providers includes regular meetings with client service teams, systematic","page_number":205,"box":{"x":70,"y":439,"width":760,"height":11}},{"id":"8779e71f-6924-4a75-be3c-c07f5068695e","block_type":"box","text":"monitoring of vendor operations, as well as annual due diligence meetings in accordance with BlackRock’s firmwide","page_number":205,"box":{"x":69,"y":454,"width":824,"height":11}},{"id":"5310efc4-013f-47b7-a639-707447d2156b","block_type":"box","text":"policies.","page_number":205,"box":{"x":70,"y":469,"width":56,"height":11}},{"id":"3c323d6b-3ce0-42ff-ba68-89d23b381aed","block_type":"box","text":"Conflicts management policies and procedures","page_number":205,"box":{"x":69,"y":491,"width":342,"height":11}},{"id":"99955e6a-a30d-4253-b75b-0365433a8e6d","block_type":"box","text":"BlackRock maintains policies and procedures that seek to prevent undue influence on BAIS’ proxy voting activity.","page_number":205,"box":{"x":102,"y":510,"width":801,"height":11}},{"id":"1fb75142-d064-41af-84d5-f28a72ea1749","block_type":"box","text":"Such influence might stem from any relationship between the investee company (or any shareholder proponent or","page_number":205,"box":{"x":69,"y":525,"width":809,"height":11}},{"id":"eb63222b-085a-4439-91ed-6e39829bd536","block_type":"box","text":"dissident shareholder) and BlackRock, BlackRock’s affiliates, a Fund or a Fund’s affiliates, or BlackRock employees.","page_number":205,"box":{"x":69,"y":539,"width":831,"height":12}},{"id":"90742aa4-2a3a-4997-a79c-e69333a561f5","block_type":"box","text":"The following are examples of sources of perceived or potential conflicts of interest:","page_number":205,"box":{"x":68,"y":554,"width":598,"height":12}},{"id":"8fb0dffc-ae4e-43de-b33d-9584eec8afac","block_type":"box","text":"•","page_number":205,"box":{"x":69,"y":575,"width":6,"height":4}},{"id":"98bc9682-e1a5-4cb1-8073-0248074ffd28","block_type":"box","text":"BlackRock clients who may be issuers of securities or proponents of shareholder resolutions","page_number":205,"box":{"x":102,"y":572,"width":660,"height":11}},{"id":"0cc0069f-09bd-404c-834e-1ac9e3a12e2d","block_type":"box","text":"•","page_number":205,"box":{"x":69,"y":592,"width":6,"height":5}},{"id":"0fb0e154-5c98-4019-836a-b7aec138308e","block_type":"box","text":"BlackRock business partners or third parties who may be issuers of securities or proponents of shareholder","page_number":205,"box":{"x":102,"y":589,"width":772,"height":11}},{"id":"f8f9aa59-f73f-4217-90b4-7a5e9a207b74","block_type":"box","text":"resolutions","page_number":205,"box":{"x":102,"y":604,"width":78,"height":9}},{"id":"e5e9003b-a80b-4a7d-b347-98f17480f816","block_type":"box","text":"•","page_number":205,"box":{"x":69,"y":624,"width":6,"height":5}},{"id":"f759d942-d985-45c7-9f4d-843034109623","block_type":"box","text":"BlackRock employees who may sit on the boards of public companies held in Funds managed by BlackRock","page_number":205,"box":{"x":102,"y":621,"width":766,"height":12}},{"id":"a6083041-0cae-4aec-acb3-61296977e62b","block_type":"box","text":"•","page_number":205,"box":{"x":69,"y":642,"width":6,"height":4}},{"id":"fc15b7e5-c0bc-41cf-9de0-d5c2c7a52d60","block_type":"box","text":"Significant BlackRock, Inc. investors who may be issuers of securities held in Funds managed by BlackRock","page_number":205,"box":{"x":102,"y":639,"width":767,"height":11}},{"id":"31cdd95a-e95c-40a0-930b-4abf5b76e094","block_type":"box","text":"•","page_number":205,"box":{"x":69,"y":659,"width":6,"height":5}},{"id":"4caf70f1-5105-42dd-a7a1-5f68775c9e08","block_type":"box","text":"Securities of BlackRock, Inc. or BlackRock investment funds held in Funds managed by BlackRock","page_number":205,"box":{"x":102,"y":656,"width":698,"height":11}},{"id":"ed09dcc4-4072-460f-8926-5fab60daa524","block_type":"box","text":"•","page_number":205,"box":{"x":69,"y":676,"width":6,"height":5}},{"id":"d62dd102-f1ed-4325-9cbb-2b07549d18ab","block_type":"box","text":"BlackRock, Inc. board members who serve as senior executives or directors of public companies held in Funds","page_number":205,"box":{"x":102,"y":673,"width":789,"height":11}},{"id":"cc709d96-bdf2-46d3-8442-6c8036b004d8","block_type":"box","text":"managed by BlackRock","page_number":205,"box":{"x":102,"y":689,"width":163,"height":11}},{"id":"e83a8a01-dc03-425a-93fc-c6c36264adca","block_type":"box","text":"BlackRock has taken certain steps to mitigate perceived or potential conflicts including, but not limited to, the","page_number":205,"box":{"x":102,"y":707,"width":785,"height":11}},{"id":"d3874882-4494-478b-9cb0-ed7d2e0ebcc0","block_type":"box","text":"following:","page_number":205,"box":{"x":68,"y":722,"width":66,"height":11}},{"id":"8f168aff-752a-4620-b79a-4861fe28d4b3","block_type":"box","text":"•","page_number":205,"box":{"x":69,"y":742,"width":6,"height":5}},{"id":"63bc4312-5291-437f-bcf2-f742947537c4","block_type":"box","text":"Adopted these Guidelines which are designed to advance our clients’ long-term financial interests in the","page_number":205,"box":{"x":101,"y":739,"width":741,"height":11}},{"id":"12972476-180b-4467-b21c-ac1683a50140","block_type":"box","text":"companies in which BlackRock invests on their behalf","page_number":205,"box":{"x":101,"y":754,"width":383,"height":11}},{"id":"cfc9bb60-8535-41ec-9d6e-9384f97cd868","block_type":"box","text":"•","page_number":205,"box":{"x":69,"y":774,"width":6,"height":5}},{"id":"36dbaa1c-fe28-406a-ad4d-8e7f7423a53e","block_type":"box","text":"Established a reporting structure that separates BAIS from employees with sales, vendor management, or","page_number":205,"box":{"x":102,"y":771,"width":757,"height":12}},{"id":"e5152277-51d8-4146-94ab-d9d1d15f81de","block_type":"box","text":"business partnership roles. In addition, BlackRock seeks to ensure that all engagements with corporate issuers,","page_number":205,"box":{"x":102,"y":787,"width":802,"height":11}},{"id":"05af9a04-3daf-40e5-8e90-5ec8aae17c09","block_type":"box","text":"dissident shareholders or shareholder proponents are managed consistently and without regard to BlackRock’s","page_number":205,"box":{"x":101,"y":801,"width":794,"height":11}},{"id":"44204773-22e2-4bda-858d-05d8ba5cd947","block_type":"box","text":"relationship with such parties. Clients or business partners are not given preferential treatment or differentiated","page_number":205,"box":{"x":102,"y":816,"width":801,"height":11}},{"id":"9793f849-2092-4208-a27a-29f9622d0f94","block_type":"box","text":"access. BAIS prioritizes engagements based on factors including, but not limited to, our need for additional","page_number":205,"box":{"x":102,"y":831,"width":762,"height":11}},{"id":"42a2c072-0333-4218-b861-84ac26856c34","block_type":"box","text":"12","page_number":205,"box":{"x":69,"y":861,"width":9,"height":4}},{"id":"75b29ff3-98e4-4026-a5f1-31c229ddeb92","block_type":"box","text":"With Voting Choice, SMAs have the ability to select from a set of voting policies from third-party proxy advisers the","page_number":205,"box":{"x":83,"y":860,"width":814,"height":11}},{"id":"63d50b61-2c6a-40c4-95c4-b20890b48809","block_type":"box","text":"policy that best aligns with their views and preferences. BlackRock can then use its proxy voting infrastructure to cast","page_number":205,"box":{"x":70,"y":875,"width":838,"height":12}},{"id":"00625624-c46e-401c-a8b4-941cf5912ca7","block_type":"box","text":"votes based on the client’s selected voting policy.","page_number":205,"box":{"x":68,"y":891,"width":354,"height":11}},{"id":"a1a261be-9e9c-4df6-aae3-d381d586a9ba","block_type":"box","text":"13","page_number":205,"box":{"x":69,"y":908,"width":9,"height":5}},{"id":"d1539ca4-7b69-4b5d-9026-dc23b52fc065","block_type":"box","text":"BlackRock does not disclose client information, including a client’s selection of proxy policy, without client consent.","page_number":205,"box":{"x":84,"y":908,"width":820,"height":11}},{"id":"2e90163b-47e2-494f-bae4-d0f336ae0bfd","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":205,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"333adbd6-45ce-4a67-9f93-7c35506836bc","block_type":"box","text":"Global Engagement and Voting Guidelines | 18","page_number":205,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"f058c3d5-d8e1-425e-aa52-141b9154c0b0","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":205,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"32cf24a3-2231-4ff9-a12d-e78ba3e88237","block_type":"box","text":"information to make a more informed voting decision or to better understand a company’s perspectives on","page_number":206,"box":{"x":102,"y":45,"width":759,"height":11}},{"id":"fbd21742-e0f7-4a18-b780-7fca8ad727e6","block_type":"box","text":"financially material risks and opportunities. Within the normal course of business, BAIS may engage directly with","page_number":206,"box":{"x":101,"y":59,"width":802,"height":12}},{"id":"be02380b-0716-4f20-afc1-a92fcdd06f79","block_type":"box","text":"BlackRock clients, business partners and/or third parties, and/or with employees with sales, vendor","page_number":206,"box":{"x":102,"y":75,"width":719,"height":11}},{"id":"bef7b428-3249-4f30-8b02-e3b1f3a290fc","block_type":"box","text":"management, or business partnership roles, in discussions regarding our approach to stewardship, general","page_number":206,"box":{"x":102,"y":89,"width":766,"height":12}},{"id":"712fc817-3690-47bc-a3d2-05afb07ae445","block_type":"box","text":"corporate governance matters, client reporting needs, and/or to otherwise ensure that proxy-related client","page_number":206,"box":{"x":101,"y":104,"width":758,"height":11}},{"id":"fe037c11-2d5d-41b3-be2d-e38ab7e4415f","block_type":"box","text":"service levels are met","page_number":206,"box":{"x":102,"y":119,"width":157,"height":9}},{"id":"617612b4-9f28-4950-957d-4ed8038d154c","block_type":"box","text":"•","page_number":206,"box":{"x":69,"y":139,"width":6,"height":5}},{"id":"d615bc56-b575-4a28-a7d1-b743c9f2f27b","block_type":"box","text":"Determined to engage, in certain instances, an independent third-party voting service provider to make proxy","page_number":206,"box":{"x":102,"y":137,"width":777,"height":11}},{"id":"ef79de39-dbbd-4d71-b8a0-a1433bfce8c2","block_type":"box","text":"voting recommendations as a further safeguard to avoid perceived or potential conflicts of interest, to satisfy","page_number":206,"box":{"x":101,"y":151,"width":779,"height":11}},{"id":"fdc726af-87d2-444f-b168-efb2d5370954","block_type":"box","text":"regulatory requirements, or as may be otherwise required by applicable law. In such circumstances, the","page_number":206,"box":{"x":102,"y":166,"width":738,"height":11}},{"id":"0dfe4f9d-f441-40dc-9c65-17f4d5f1914d","block_type":"box","text":"independent third-party voting service provider provides BlackRock with recommendations, in accordance with","page_number":206,"box":{"x":102,"y":181,"width":782,"height":11}},{"id":"463e3506-4306-416b-8589-18a8f85edc13","block_type":"box","text":"the Guidelines, as to how to vote such proxies. BlackRock uses an independent third-party voting service","page_number":206,"box":{"x":101,"y":196,"width":749,"height":11}},{"id":"571c27b8-0122-4622-b190-b24725117eb5","block_type":"box","text":"provider to make proxy voting recommendations for shares of BlackRock, Inc. and companies affiliated with","page_number":206,"box":{"x":102,"y":211,"width":765,"height":11}},{"id":"971bff78-96bc-474a-ae88-83cd4d6f842b","block_type":"box","text":"BlackRock, Inc. BlackRock may also use an independent third-party voting service provider to make proxy voting","page_number":206,"box":{"x":102,"y":226,"width":797,"height":11}},{"id":"801eb0dc-0b02-460c-aaae-cab699d8220c","block_type":"box","text":"recommendations for certain perceived or potential conflicts of interest, including:","page_number":206,"box":{"x":102,"y":240,"width":584,"height":12}},{"id":"90de5991-bd62-4235-9364-410de569d656","block_type":"box","text":"•","page_number":206,"box":{"x":102,"y":261,"width":6,"height":4}},{"id":"998c4931-a907-4d15-9ba8-e752c8b8cf1e","block_type":"box","text":"public companies that include BlackRock employees on their boards of directors","page_number":206,"box":{"x":135,"y":258,"width":570,"height":11}},{"id":"88de16af-0433-49bb-a490-93daf6fd8c1e","block_type":"box","text":"•","page_number":206,"box":{"x":102,"y":278,"width":6,"height":5}},{"id":"2633f6b9-fdd1-4240-b784-546a28da156d","block_type":"box","text":"public companies of which a BlackRock, Inc. board member serves as a senior executive or a member of","page_number":206,"box":{"x":135,"y":275,"width":748,"height":11}},{"id":"12aa40a4-172d-4ee1-b508-f80f7c347236","block_type":"box","text":"the board of directors","page_number":206,"box":{"x":134,"y":290,"width":153,"height":9}},{"id":"a6027969-4b00-446d-bea6-894e5f9ff062","block_type":"box","text":"•","page_number":206,"box":{"x":102,"y":310,"width":6,"height":5}},{"id":"5857735a-2544-4e83-9efb-3715fb83e5f0","block_type":"box","text":"public companies that are the subject of certain transactions involving BlackRock Funds","page_number":206,"box":{"x":135,"y":307,"width":626,"height":12}},{"id":"5f5b87b9-b3e1-4b20-bad7-f1d4112cb8e9","block_type":"box","text":"•","page_number":206,"box":{"x":102,"y":328,"width":6,"height":4}},{"id":"eb7d86ed-0dc1-4211-ad47-41256d0c6c12","block_type":"box","text":"public companies that are joint venture partners with BlackRock, and","page_number":206,"box":{"x":135,"y":325,"width":490,"height":11}},{"id":"dc21f4eb-bf7b-4292-bea7-e55e1728f804","block_type":"box","text":"•","page_number":206,"box":{"x":102,"y":345,"width":6,"height":5}},{"id":"84af4e97-adce-41bb-9edb-00f36aec1348","block_type":"box","text":"public companies when legal or regulatory requirements compel BlackRock to use an independent third","page_number":206,"box":{"x":135,"y":342,"width":740,"height":11}},{"id":"b2cc92f1-7e4d-4320-9dfe-93f4feea646b","block_type":"box","text":"party voting service provider","page_number":206,"box":{"x":135,"y":357,"width":200,"height":11}},{"id":"f0ebf92e-5271-4908-9e4f-d96aaeb87520","block_type":"box","text":"In selecting an independent third-party voting service provider, we assess several characteristics, including but","page_number":206,"box":{"x":102,"y":376,"width":790,"height":11}},{"id":"924e364c-00db-47f3-8205-05e56d35cc27","block_type":"box","text":"not limited to: independence, an ability to analyze proxy issues and make recommendations in the economic interest","page_number":206,"box":{"x":69,"y":391,"width":834,"height":11}},{"id":"8b2aae21-2674-49dd-92db-39bb7ea9a347","block_type":"box","text":"of our clients in accordance with the Guidelines, reputation for reliability and integrity, and operational capacity to","page_number":206,"box":{"x":69,"y":405,"width":806,"height":12}},{"id":"9b0d9d92-eca3-4fed-ab62-0e35f496a12b","block_type":"box","text":"accurately deliver the assigned recommendations in a timely manner. We may engage more than one independent","page_number":206,"box":{"x":69,"y":420,"width":813,"height":12}},{"id":"9abab732-cea7-4bf2-a9a0-fcf958dbb69d","block_type":"box","text":"third-party voting service provider, in part to mitigate potential or perceived conflicts of interest at a single voting","page_number":206,"box":{"x":68,"y":435,"width":804,"height":11}},{"id":"048ade11-0656-421f-9c70-5786d7691039","block_type":"box","text":"service provider.","page_number":206,"box":{"x":69,"y":450,"width":115,"height":11}},{"id":"588c4b8f-b9de-4372-841c-aac7f9bc4296","block_type":"box","text":"Securities lending","page_number":206,"box":{"x":68,"y":473,"width":131,"height":11}},{"id":"583e615b-87b8-4664-9c1c-642e6cedb9b2","block_type":"box","text":"If authorized, BlackRock acts as a securities lending agent on behalf of its clients. Securities lending is a well","page_number":206,"box":{"x":102,"y":491,"width":785,"height":11}},{"id":"371994ba-07e4-40cc-9c28-a11eb68fb546","block_type":"box","text":"regulated practice that contributes to capital market efficiency. It also enables funds to generate additional returns","page_number":206,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"ddd8667d-1288-402c-8385-a644f6aee36e","block_type":"box","text":"which in turn may allow fund providers to offset fund expenses.","page_number":206,"box":{"x":68,"y":521,"width":452,"height":11}},{"id":"882418ff-ad5a-4e85-adf2-fcd985c82cb9","block_type":"box","text":"With regard to the relationship between securities lending and proxy voting, BlackRock cannot vote shares on","page_number":206,"box":{"x":101,"y":540,"width":779,"height":11}},{"id":"7031d1f2-3b00-4ca0-bcd5-c1f5b5207bd1","block_type":"box","text":"loan and may determine to recall them to allow for voting. This decision is guided by our fiduciary duty as an asset","page_number":206,"box":{"x":70,"y":554,"width":816,"height":12}},{"id":"6639d6d4-0ad1-4a95-b9d1-32254e9e0422","block_type":"box","text":"manager to our clients in helping them achieve their investment goals. While this has occurred in a limited number of","page_number":206,"box":{"x":69,"y":569,"width":836,"height":11}},{"id":"f82095c5-e5c3-4124-9e3b-4fd8692c8ecc","block_type":"box","text":"cases, the decision to recall securities on loan as part of BlackRock’s securities lending program in order to vote is","page_number":206,"box":{"x":69,"y":584,"width":824,"height":11}},{"id":"021bbb39-1446-466e-bd43-2001eb472f28","block_type":"box","text":"based on an evaluation of various factors that include, but are not limited to, assessing potential securities lending","page_number":206,"box":{"x":69,"y":599,"width":823,"height":11}},{"id":"91f00418-7599-4e3f-a195-6a65551982c0","block_type":"box","text":"revenue alongside the potential long-term financial value to clients of voting those securities (based on the","page_number":206,"box":{"x":69,"y":614,"width":761,"height":11}},{"id":"03e4038d-5a77-4042-80a4-995d608cb852","block_type":"box","text":"information available at the time of recall consideration). BAIS works with active portfolio managers, as well as","page_number":206,"box":{"x":70,"y":629,"width":789,"height":11}},{"id":"9d1836cd-4f2a-4d56-aa5f-c0463a0e70f9","block_type":"box","text":"colleagues in the Securities Lending team, to evaluate the costs and benefits to clients of recalling shares on loan.","page_number":206,"box":{"x":69,"y":643,"width":821,"height":12}},{"id":"18a9bca4-d31f-4ffe-bb84-85489ee0e70d","block_type":"box","text":"In almost all instances, BlackRock anticipates that the potential long-term financial value to clients of voting","page_number":206,"box":{"x":102,"y":662,"width":770,"height":11}},{"id":"2422321a-e27c-496b-bf9e-3d16bd267f11","block_type":"box","text":"shares would not warrant recalling securities on loan. However, in certain instances, BlackRock may determine, in","page_number":206,"box":{"x":69,"y":677,"width":813,"height":11}},{"id":"28e96415-2678-4085-ae3e-16a3a31f86a7","block_type":"box","text":"our independent business judgment as a fiduciary, that the value of voting outweighs the securities lending revenue","page_number":206,"box":{"x":69,"y":692,"width":825,"height":11}},{"id":"a5894155-b19d-49cf-b4fb-90b746091a39","block_type":"box","text":"loss to clients and would therefore recall shares to be voted in those instances.","page_number":206,"box":{"x":70,"y":707,"width":568,"height":9}},{"id":"0147e2d4-2951-4120-b07e-b61270ea0459","block_type":"box","text":"Periodically, BlackRock reviews our process for determining whether to recall securities on loan in order to vote","page_number":206,"box":{"x":102,"y":725,"width":790,"height":12}},{"id":"c34db63b-55fb-4603-97d1-7c43dbbd06d8","block_type":"box","text":"and may modify it as necessary.","page_number":206,"box":{"x":69,"y":740,"width":228,"height":11}},{"id":"27c8eb58-8f38-4f29-9ce1-4dc18b3cbeb5","block_type":"box","text":"Reporting and vote transparency","page_number":206,"box":{"x":69,"y":763,"width":239,"height":11}},{"id":"a1696f5e-c9cb-42d5-a0c4-e0dde3dc2099","block_type":"box","text":"BAIS is committed to transparency in the stewardship work we do on behalf of clients. We inform clients about","page_number":206,"box":{"x":102,"y":781,"width":788,"height":11}},{"id":"8b5b1962-255d-46bb-8d5f-ee64323ca006","block_type":"box","text":"our engagement and voting policies and activities through direct communication and disclosure on our website.","page_number":206,"box":{"x":69,"y":796,"width":791,"height":11}},{"id":"f99b2e38-70a3-45cc-a564-bb96e1d801bd","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":206,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"54ca6863-3826-4a62-a529-4523b92bf973","block_type":"box","text":"Global Engagement and Voting Guidelines | 19","page_number":206,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"ea28e783-cb31-49d0-a5cf-18f54cfc56ab","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":206,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b090624f-eeda-4b45-99e6-c17a018af426","block_type":"box","text":"Want to know more?","page_number":207,"box":{"x":68,"y":762,"width":152,"height":8}},{"id":"ac90346a-98bf-4ca9-bbf8-fa645654482c","block_type":"box","text":"blackrock.com/stewardship | ContactActiveStewardship@blackrock.com","page_number":207,"box":{"x":69,"y":791,"width":510,"height":13}},{"id":"26b31333-1483-480b-9dbe-226da56ea2e7","block_type":"box","text":"The document is provided for information purposes only and is subject to change. Reliance upon this information is","page_number":207,"box":{"x":68,"y":822,"width":823,"height":11}},{"id":"42a4a0e0-85fa-45c7-baf5-0e43865033b0","block_type":"box","text":"at the sole discretion of the reader.","page_number":207,"box":{"x":69,"y":837,"width":250,"height":9}},{"id":"39a92fa4-046a-4e6e-8074-363dcc111855","block_type":"box","text":"Prepared by BlackRock, Inc.","page_number":207,"box":{"x":69,"y":868,"width":196,"height":10}},{"id":"7379fc50-5da9-4b5c-86ac-44d6168384e7","block_type":"box","text":"©","page_number":207,"box":{"x":68,"y":898,"width":6,"height":4}},{"id":"3c89d450-a7ff-4f86-a651-36e669d79d16","block_type":"box","text":"2025 BlackRock, Inc. All rights reserved. BLACKROCK is a trademark of BlackRock, Inc., or its subsidiaries in the","page_number":207,"box":{"x":75,"y":898,"width":809,"height":11}},{"id":"6690299f-596f-4e22-b745-6a78daf0ac5e","block_type":"box","text":"United States and elsewhere. All other trademarks are those of their respective owners.","page_number":207,"box":{"x":70,"y":913,"width":624,"height":11}},{"id":"da917469-fe54-41c0-9803-4d63addf53b1","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":207,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"1414f158-8745-4007-ac70-5b50974b576b","block_type":"box","text":"Global Engagement and Voting Guidelines | 20","page_number":207,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"a27b9d2e-67ff-44e3-ac80-66f7667958e0","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":207,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"82a15355-ced8-4d7c-888e-487abaf802d5","block_type":"box","text":"Index Equity Fund Proxy Voting Policy","page_number":208,"box":{"x":352,"y":75,"width":275,"height":11}},{"id":"e6ec4865-8f2d-4083-96d5-f7a41a165d82","block_type":"box","text":"Procedures Governing Delegation of Proxy Voting to Fund Advisers","page_number":208,"box":{"x":247,"y":90,"width":486,"height":11}},{"id":"1db5f8e7-6f14-467b-b271-156ef0b2c3ec","block_type":"box","text":"Effective Date: January 1, 2025","page_number":208,"box":{"x":376,"y":105,"width":227,"height":11}},{"id":"55d089b9-28cf-4d96-a58a-121049b0fc1c","block_type":"box","text":"Applies to the following types of Funds registered under the 1940 Act:","page_number":208,"box":{"x":231,"y":128,"width":515,"height":11}},{"id":"07bdc89e-8ced-4327-8032-d35d02376e35","block_type":"box","text":"Index Equity Mutual Funds and Exchange-Traded Funds","page_number":208,"box":{"x":306,"y":151,"width":388,"height":11}},{"id":"535d5cdb-decd-4989-9051-b78acbb71eb5","block_type":"box","text":"□","page_number":208,"box":{"x":184,"y":173,"width":14,"height":11}},{"id":"a203358e-a761-418b-8c6c-86ad614f7cc2","block_type":"box","text":"Open-End Active and Fixed Income Index Mutual Funds and Exchange-Traded Funds","page_number":208,"box":{"x":205,"y":173,"width":589,"height":11}},{"id":"0feb3baf-f892-4e53-a55f-8b6f5c649f12","block_type":"box","text":"□","page_number":208,"box":{"x":405,"y":196,"width":14,"height":11}},{"id":"922a794c-754d-44b1-ba8e-8061d476843e","block_type":"box","text":"Money Market Funds","page_number":208,"box":{"x":426,"y":196,"width":147,"height":11}},{"id":"541071bb-abee-42a6-95c1-65ed624b87e4","block_type":"box","text":"□","page_number":208,"box":{"x":416,"y":218,"width":14,"height":12}},{"id":"883abd5d-44ca-44a4-819d-c1ba47d2b939","block_type":"box","text":"Closed-End Funds","page_number":208,"box":{"x":437,"y":219,"width":125,"height":8}},{"id":"ab36e9fb-c84c-4dca-8716-325d367fe779","block_type":"box","text":"□","page_number":208,"box":{"x":460,"y":241,"width":14,"height":11}},{"id":"e80e0c42-f66a-4747-b850-5751b524ee3b","block_type":"box","text":"Other","page_number":208,"box":{"x":481,"y":241,"width":38,"height":9}},{"id":"b9b85ade-2a50-4671-aa36-a9ddd37b5f30","block_type":"box","text":"Objective and Scope","page_number":208,"box":{"x":101,"y":260,"width":149,"height":11}},{"id":"3b7e5c9c-7be6-4307-8e8c-c4a12d534918","block_type":"box","text":"Set forth below is the Index Equity Fund Proxy Voting Policy.","page_number":208,"box":{"x":134,"y":279,"width":421,"height":11}},{"id":"0c162493-df6d-4f50-97ce-b6a7bbeff877","block_type":"box","text":"Policy/Document Requirements and Statements","page_number":208,"box":{"x":102,"y":297,"width":354,"height":11}},{"id":"f60796a9-2034-4d09-87f0-38b6356b415f","block_type":"box","text":"The Boards of Trustees/Directors (“Directors”) of certain open-end funds (the “Funds”) advised by","page_number":208,"box":{"x":134,"y":316,"width":702,"height":11}},{"id":"4b72d8ef-e2ae-4b50-8b35-5cf19518a808","block_type":"box","text":"BlackRock Fund Advisors or BlackRock Advisors, LLC (“BlackRock”), have the responsibility for the oversight of","page_number":208,"box":{"x":102,"y":331,"width":789,"height":11}},{"id":"2e387405-d16f-4728-a513-c498341d1404","block_type":"box","text":"voting proxies relating to portfolio securities of the Funds, and have determined that it is in the best interests of","page_number":208,"box":{"x":101,"y":346,"width":801,"height":11}},{"id":"d3906183-5b05-4db2-aabd-403462bdc893","block_type":"box","text":"the Funds and their shareholders to delegate the responsibility to vote proxies to BlackRock, subject to the","page_number":208,"box":{"x":101,"y":361,"width":763,"height":11}},{"id":"81043c3c-e88f-4cf8-b75d-5235bfaef460","block_type":"box","text":"principles outlined in this Policy, as part of BlackRock’s authority to manage, acquire and dispose of account","page_number":208,"box":{"x":102,"y":375,"width":775,"height":12}},{"id":"ed33ffae-69bf-410f-ab9b-0add83a119bc","block_type":"box","text":"assets, all as contemplated by the Funds’ respective investment management agreements.","page_number":208,"box":{"x":102,"y":391,"width":651,"height":11}},{"id":"508a21b1-697a-40dd-b831-bb04bc5dbba4","block_type":"box","text":"BlackRock has adopted the BlackRock Investment Stewardship Global Benchmark Policy (as from time to","page_number":208,"box":{"x":135,"y":409,"width":748,"height":11}},{"id":"975a8be3-dd50-4ae9-8bea-55e50afda7b6","block_type":"box","text":"time amended, the “Guidelines”) governing proxy voting by index equity Funds managed by BlackRock, except for","page_number":208,"box":{"x":101,"y":424,"width":804,"height":11}},{"id":"4891b1f5-c928-4c8b-8e1b-687a5a9a2568","block_type":"box","text":"the iShares Core S&P 500 ETF. In addition, BlackRock has adopted guidelines and procedures (as from time to","page_number":208,"box":{"x":101,"y":439,"width":793,"height":11}},{"id":"f7a98835-6e5f-44e5-8a0d-986e4026c298","block_type":"box","text":"time amended, the “BlackRock Climate and Decarbonization Stewardship Guidelines”) governing proxy voting for","page_number":208,"box":{"x":101,"y":454,"width":801,"height":11}},{"id":"51eda132-053a-4bb2-9b0c-4850e45e91ba","block_type":"box","text":"matters covered in the BlackRock Climate and Decarbonization Stewardship Guidelines by the Funds listed in","page_number":208,"box":{"x":102,"y":469,"width":777,"height":11}},{"id":"a98546c8-fd97-4592-82b1-ef4563fc9e97","block_type":"box","text":"Appendix A.","page_number":208,"box":{"x":101,"y":484,"width":82,"height":10}},{"id":"67a33d98-d0f6-4a11-9b97-7cd6b8ef21a0","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":208,"box":{"x":135,"y":502,"width":751,"height":11}},{"id":"463efb8e-2734-42ad-a2d9-18e709f914f1","block_type":"box","text":"respect of securities held by each such Fund (or may refrain from voting) in accordance with the Guidelines and","page_number":208,"box":{"x":102,"y":517,"width":791,"height":11}},{"id":"2ef8ac6c-60cc-42ed-8d51-0638ae6b5e14","block_type":"box","text":"the BlackRock Climate and Decarbonization Stewardship Guidelines, as applicable.","page_number":208,"box":{"x":101,"y":532,"width":591,"height":11}},{"id":"f97c4408-d0c5-4d5f-ae70-5db217cdc26b","block_type":"box","text":"Conflicts Management","page_number":208,"box":{"x":101,"y":550,"width":165,"height":11}},{"id":"5cc4b739-1c6d-4d9a-a209-df73f4d091d7","block_type":"box","text":"BlackRock Investment Stewardship (“BIS”) maintains policies and procedures that seek to prevent undue","page_number":208,"box":{"x":135,"y":569,"width":751,"height":11}},{"id":"cf2eda31-8dfb-4b99-ba3b-74c7538d2d80","block_type":"box","text":"influence on BlackRock’s proxy voting activity and to mitigate material conflicts of interest in the exercise of","page_number":208,"box":{"x":102,"y":584,"width":767,"height":11}},{"id":"758f79f2-e7ef-424e-95ba-72ed71a1ede0","block_type":"box","text":"proxy voting responsibilities. Potential material conflicts, and the resultant potential for undue influence, might","page_number":208,"box":{"x":102,"y":599,"width":787,"height":11}},{"id":"6753d9b3-4be0-4306-9c01-53aa8d903736","block_type":"box","text":"be due to a relationship between the investee company (or any shareholder proponent or dissident shareholder)","page_number":208,"box":{"x":102,"y":614,"width":797,"height":11}},{"id":"1e90edef-1330-45f9-a3aa-36637a736e39","block_type":"box","text":"and BlackRock, BlackRock’s affiliates or employees, or a Fund or a Fund’s affiliates. BlackRock has taken","page_number":208,"box":{"x":102,"y":628,"width":756,"height":12}},{"id":"b5c6c676-9d3b-4e7e-b745-7de103e5a2f1","block_type":"box","text":"certain steps to mitigate potential conflicts, which are outlined in detail in the Guidelines. In mitigating conflicts,","page_number":208,"box":{"x":101,"y":643,"width":800,"height":12}},{"id":"7092f69c-84e0-4868-8e7e-9ea557dc43cb","block_type":"box","text":"BIS will adhere to the Guidelines.","page_number":208,"box":{"x":102,"y":658,"width":235,"height":9}},{"id":"0a839747-c853-426f-9978-489492b09dda","block_type":"box","text":"In certain instances, BIS will engage an independent third-party voting service provider to make proxy voting","page_number":208,"box":{"x":135,"y":677,"width":769,"height":11}},{"id":"7367f705-71a4-41de-9da3-afff3d1a9f47","block_type":"box","text":"recommendations as a further safeguard to avoid potential conflicts of interest, to satisfy regulatory compliance","page_number":208,"box":{"x":102,"y":692,"width":800,"height":11}},{"id":"89fc8c7d-1ce1-4cff-b0e9-4d6b6106aeec","block_type":"box","text":"requirements, or as may be otherwise required by applicable law.","page_number":208,"box":{"x":102,"y":707,"width":463,"height":11}},{"id":"3d6723e5-cdb5-44d5-95ef-6c902663d43e","block_type":"box","text":"With respect to the relationship between securities lending and proxy voting, shares on loan cannot be voted","page_number":208,"box":{"x":134,"y":725,"width":774,"height":11}},{"id":"fddb8b5f-4a07-424a-bbe8-76ea5ca559bd","block_type":"box","text":"and BlackRock may determine to recall them for voting, as guided by BlackRock’s fiduciary responsibility to act","page_number":208,"box":{"x":102,"y":740,"width":791,"height":11}},{"id":"b1addc4d-c395-4a3b-a24d-26ad001480ac","block_type":"box","text":"in clients’ financial interests. The Guidelines set forth BlackRock’s approach to recalling securities on loan in","page_number":208,"box":{"x":102,"y":755,"width":778,"height":11}},{"id":"c9fa0a7b-eacd-46a2-b01e-6966707d7d5b","block_type":"box","text":"connection with proxy voting.","page_number":208,"box":{"x":101,"y":770,"width":203,"height":11}},{"id":"c1032790-0a59-481a-9162-535fa9a4923d","block_type":"box","text":"Reports to the Board","page_number":208,"box":{"x":102,"y":789,"width":153,"height":10}},{"id":"1e23f378-710b-42bc-9dc9-b9e2b8b08f29","block_type":"box","text":"BlackRock will report on an annual basis to the Directors on (1) a summary of the proxy voting process as","page_number":208,"box":{"x":135,"y":807,"width":755,"height":11}},{"id":"958471e6-93b4-4864-a02d-3c9c6089dd80","block_type":"box","text":"applicable to the Funds covered by this policy in the preceding year together with a representation that all votes","page_number":208,"box":{"x":102,"y":822,"width":794,"height":11}},{"id":"6e12b92b-faf4-4d28-ae97-6641981a44b3","block_type":"box","text":"were in accordance with the Guidelines and the BlackRock Climate and Decarbonization Stewardship Guidelines,","page_number":208,"box":{"x":101,"y":837,"width":802,"height":11}},{"id":"c1ff3203-5988-4daa-b5d6-4833ce86a025","block_type":"box","text":"as applicable (2) any material changes to the Guidelines and the BlackRock Climate and Decarbonization","page_number":208,"box":{"x":102,"y":852,"width":747,"height":11}},{"id":"4ba47bec-8489-4233-8950-71a80aaa8ffd","block_type":"box","text":"Stewardship Guidelines, including material changes to conflicts management practices, that have not previously","page_number":208,"box":{"x":102,"y":866,"width":798,"height":12}},{"id":"13f5b77c-3d23-4fa1-81c0-e469a96317d3","block_type":"box","text":"been reported.","page_number":208,"box":{"x":102,"y":882,"width":104,"height":10}},{"id":"6676f164-1e18-4e93-a2e4-b675da224acf","block_type":"box","text":"Index Equity Fund Proxy Voting Policy","page_number":208,"box":{"x":651,"y":45,"width":259,"height":11}},{"id":"381d4977-f606-4bd3-bb51-d32dba12184c","block_type":"box","text":"BlackRock","page_number":208,"box":{"x":69,"y":943,"width":78,"height":9}},{"id":"11bba7d3-b9fd-4219-aca1-1a102c1850f2","block_type":"box","text":"Public Page 1 of 2","page_number":208,"box":{"x":469,"y":943,"width":440,"height":11}},{"id":"178fb6c3-fa6d-422e-9d91-ad5ad65b029b","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":208,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0181ce3a-ef99-41b3-9b54-6ceb4577701e","block_type":"box","text":"Appendix A","page_number":209,"box":{"x":101,"y":75,"width":82,"height":11}},{"id":"f06e7e58-8bb4-4de5-91ad-63c9f19c9c19","block_type":"box","text":"iShares Climate Conscious & Transition MSCI USA ETF","page_number":209,"box":{"x":135,"y":98,"width":389,"height":9}},{"id":"d83c0f10-4d3e-4329-966d-591330aa0469","block_type":"box","text":"iShares ESG Advanced MSCI EAFE ETF","page_number":209,"box":{"x":135,"y":120,"width":274,"height":9}},{"id":"7c8a2e14-ee64-423a-a7b0-de16ecb5d35a","block_type":"box","text":"iShares ESG Advanced MSCI EM ETF","page_number":209,"box":{"x":135,"y":143,"width":261,"height":9}},{"id":"3978de8f-5ab4-4bc4-a72e-7ddab170b12a","block_type":"box","text":"iShares ESG Advanced MSCI USA ETF","page_number":209,"box":{"x":135,"y":166,"width":268,"height":9}},{"id":"be3dd8e4-367c-434c-b04b-ef54425712e7","block_type":"box","text":"iShares ESG MSCI EM Leaders ETF","page_number":209,"box":{"x":135,"y":188,"width":250,"height":9}},{"id":"c383572c-1ce4-490d-bfff-87354d867c5a","block_type":"box","text":"iShares ESG MSCI USA Leaders ETF","page_number":209,"box":{"x":135,"y":211,"width":257,"height":9}},{"id":"6354849e-7b8a-41e4-b541-7ba05436845e","block_type":"box","text":"iShares MSCI ACWI Low Carbon Target ETF","page_number":209,"box":{"x":135,"y":234,"width":304,"height":11}},{"id":"d854b2f1-7577-4505-8c3b-e2e15aedbee1","block_type":"box","text":"iShares MSCI KLD 400 Social ETF","page_number":209,"box":{"x":135,"y":256,"width":242,"height":9}},{"id":"878aa595-8b1e-4c17-a3c1-fc289ed60470","block_type":"box","text":"iShares MSCI USA ESG Select ETF","page_number":209,"box":{"x":135,"y":279,"width":245,"height":9}},{"id":"ae51d0da-88d0-4428-a3d4-7c0927822aed","block_type":"box","text":"iShares Paris-Aligned Climate MSCI USA ETF","page_number":209,"box":{"x":135,"y":302,"width":315,"height":11}},{"id":"7d94391b-3c63-4b64-bfa3-079c180e869a","block_type":"box","text":"iShares Paris-Aligned Climate MSCI World ex USA ETF","page_number":209,"box":{"x":135,"y":324,"width":380,"height":12}},{"id":"d23da10b-4144-421e-977f-79636ce72325","block_type":"box","text":"Index Equity Fund Proxy Voting Policy","page_number":209,"box":{"x":651,"y":45,"width":259,"height":11}},{"id":"6a83c73d-e6b9-4dfc-abb1-bc4644c6c3f1","block_type":"box","text":"BlackRock","page_number":209,"box":{"x":69,"y":943,"width":78,"height":9}},{"id":"d9a1787d-cd52-453b-8d44-c67396670bbc","block_type":"box","text":"Public Page 2 of 2","page_number":209,"box":{"x":469,"y":943,"width":440,"height":11}},{"id":"c16eb40c-9abd-416c-8152-d10fb227dc03","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":209,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"193f7b0a-c660-43e3-ac3e-260f15e5c686","block_type":"box","text":"BlackRock Investment Stewardship","page_number":210,"box":{"x":359,"y":45,"width":260,"height":11}},{"id":"3b35b01b-c304-4b0e-9f3b-f5a60a7d7b7b","block_type":"box","text":"Global Principles for Benchmark Policies","page_number":210,"box":{"x":341,"y":67,"width":296,"height":11}},{"id":"bb724b72-6085-42a9-a983-048fa2f5a8e0","block_type":"box","text":"Effective as of January 2026","page_number":210,"box":{"x":385,"y":90,"width":208,"height":11}},{"id":"708927c6-0f6c-4afb-8a83-3351c16a5f6b","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":210,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2c10fdfc-4c12-4a24-9774-969d203e8333","block_type":"box","text":"TABLE OF CONTENTS","page_number":211,"box":{"x":411,"y":45,"width":155,"height":9}},{"id":"f1a1272e-b114-4103-8e52-3915d501cae7","block_type":"box","text":"Page","page_number":211,"box":{"x":876,"y":65,"width":28,"height":9}},{"id":"9dbf30e9-0d9c-4738-9ce7-4a4c5b408775","block_type":"box","text":"INTRODUCTION TO BLACKROCK INVESTMENT STEWARDSHIP","page_number":211,"box":{"x":74,"y":84,"width":451,"height":9}},{"id":"11d331d8-3b21-4fa7-a4c5-200d761dc837","block_type":"box","text":".......................................... 3","page_number":211,"box":{"x":528,"y":84,"width":376,"height":9}},{"id":"dd07c0ed-ed8f-4fcd-b931-54abbeb9f6ca","block_type":"box","text":"PHILOSOPHY ON INVESTMENT STEWARDSHIP","page_number":211,"box":{"x":74,"y":101,"width":337,"height":9}},{"id":"a2605ac4-c08a-43f6-9744-0c476bdccdd9","block_type":"box","text":"........................................................ 3","page_number":211,"box":{"x":414,"y":101,"width":490,"height":9}},{"id":"06466579-e6f0-47f0-a05f-324221b629d0","block_type":"box","text":"KEY GOVERNANCE TOPICS","page_number":211,"box":{"x":74,"y":117,"width":197,"height":9}},{"id":"8c7c518d-055a-4a3a-838e-e005a84eb050","block_type":"box","text":"......................................................................... 4","page_number":211,"box":{"x":275,"y":117,"width":629,"height":9}},{"id":"0ebfd8aa-0db0-488a-8716-7de0f39b8b9a","block_type":"box","text":"BOARDS AND DIRECTORS","page_number":211,"box":{"x":74,"y":134,"width":190,"height":8}},{"id":"1259fbb8-c8f7-4483-b98e-e4deff42b7f9","block_type":"box","text":".......................................................................... 5","page_number":211,"box":{"x":267,"y":134,"width":637,"height":8}},{"id":"2530572b-0b31-4e34-a7d8-e400ffab1f2f","block_type":"box","text":"AUDITORS AND AUDIT-RELATED ISSUES","page_number":211,"box":{"x":73,"y":150,"width":294,"height":9}},{"id":"1920ee09-670f-4085-a661-18685d13d3c2","block_type":"box","text":"............................................................. 7","page_number":211,"box":{"x":373,"y":150,"width":531,"height":9}},{"id":"67fc9060-3b6e-42d5-9905-71e45de420d3","block_type":"box","text":"CAPITAL STRUCTURE, MERGERS, ACQUISITIONS, ASSET SALES, AND OTHER SPECIAL SITUATIONS","page_number":211,"box":{"x":74,"y":166,"width":728,"height":11}},{"id":"38f4176b-0ff0-4f39-bbe2-cb9e72b90758","block_type":"box","text":"........ 7","page_number":211,"box":{"x":805,"y":166,"width":99,"height":9}},{"id":"527100e1-0782-4d16-8dab-3395ed979ea5","block_type":"box","text":"EXECUTIVE COMPENSATION AND BENEFITS","page_number":211,"box":{"x":74,"y":183,"width":322,"height":9}},{"id":"cc33d763-055a-47cd-81c5-48e561870482","block_type":"box","text":"......................................................... 8","page_number":211,"box":{"x":406,"y":183,"width":498,"height":9}},{"id":"6dc8868a-0d50-4157-9af1-f7f7c254cbbe","block_type":"box","text":"SHAREHOLDER PROTECTIONS AND OTHER CORPORATE GOVERNANCE MATTERS","page_number":211,"box":{"x":73,"y":199,"width":595,"height":9}},{"id":"855df21b-5ec3-4b91-bc58-39a9a272633f","block_type":"box","text":"........................ 9","page_number":211,"box":{"x":675,"y":199,"width":229,"height":9}},{"id":"02048bbd-a4e2-45e6-a361-5df6c1b7c204","block_type":"box","text":"SHAREHOLDER PROPOSALS","page_number":211,"box":{"x":73,"y":215,"width":207,"height":9}},{"id":"33a3a573-b9a6-4ae7-bb33-5669a77848f6","block_type":"box","text":"........................................................................ 9","page_number":211,"box":{"x":283,"y":215,"width":621,"height":9}},{"id":"36e5e835-7d48-4996-904c-a60e0dd61da6","block_type":"box","text":"MATERIAL SUSTAINABILITY-RELATED RISKS AND OPPORTUNITIES","page_number":211,"box":{"x":74,"y":232,"width":484,"height":9}},{"id":"6cb59732-169a-43f9-b69b-d3d1d39f6751","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10","page_number":211,"box":{"x":561,"y":232,"width":343,"height":9}},{"id":"97de9f4c-1227-40a0-9fb6-6dc033ec4621","block_type":"box","text":"BLACKROCK’S OVERSIGHT OF ITS INVESTMENT STEWARDSHIP ACTIVITIES","page_number":211,"box":{"x":74,"y":248,"width":553,"height":9}},{"id":"1e356cb2-6876-438c-9940-6d87bf108744","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12","page_number":211,"box":{"x":634,"y":248,"width":270,"height":9}},{"id":"8646b238-6737-423e-8c51-7b40d6d47861","block_type":"box","text":"VOTING CHOICE","page_number":211,"box":{"x":73,"y":265,"width":118,"height":8}},{"id":"a6dcb6a1-e185-4b5d-9229-2ec1c9cbe603","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13","page_number":211,"box":{"x":194,"y":265,"width":710,"height":8}},{"id":"b0a89a30-9732-4b79-b28a-5a513a6473eb","block_type":"box","text":"REPORTING AND VOTE TRANSPARENCY","page_number":211,"box":{"x":74,"y":295,"width":293,"height":9}},{"id":"37fe8cb0-58a2-4bd4-8e17-d4f9ee6a9fa4","block_type":"box","text":".............................................................","page_number":211,"box":{"x":373,"y":302,"width":491,"height":2}},{"id":"4b1c193e-b42c-4e8e-a3f8-f04755bc52a3","block_type":"box","text":"14","page_number":211,"box":{"x":886,"y":281,"width":18,"height":9}},{"id":"e312e2d6-0828-4503-bd6d-351678cbc6c7","block_type":"box","text":"The purpose of this document is to provide an overarching explanation of BlackRock’s global approach to our","page_number":211,"box":{"x":75,"y":341,"width":778,"height":12}},{"id":"0fe41919-1352-4509-b4fa-f875eabb8c24","block_type":"box","text":"responsibilities as a shareholder on behalf of our clients, the principles that guide our dialogue with","page_number":211,"box":{"x":74,"y":355,"width":711,"height":11}},{"id":"070a13b5-3446-45b6-864f-176890350793","block_type":"box","text":"companies, and our commitments to clients in terms of our own governance and transparency.","page_number":211,"box":{"x":74,"y":369,"width":674,"height":11}},{"id":"dd8d4ffe-4475-470d-871b-abec51c7b9e7","block_type":"box","text":"BlackRock Investment Stewardship","page_number":211,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"933dc4f0-9225-4082-a612-f50bb1099b08","block_type":"box","text":"Global Principles | 2","page_number":211,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"65dafeae-deb7-4096-a0cf-1de9345a0178","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":211,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"32d881b3-dd4a-4f53-81f1-a44b4da8b9d2","block_type":"box","text":"INTRODUCTION TO BLACKROCK INVESTMENT STEWARDSHIP","page_number":212,"box":{"x":264,"y":45,"width":450,"height":9}},{"id":"c1fe6de6-61b4-4f36-99a9-b825451c6582","block_type":"box","text":"At BlackRock, investment stewardship serves as a link between our clients and the companies they invest in and","page_number":212,"box":{"x":101,"y":68,"width":807,"height":10}},{"id":"d1c796d7-b900-4107-9bbf-2e4d3d645fbd","block_type":"box","text":"is one of the ways we fulfill our fiduciary responsibilities as an asset manager on their behalf. BlackRock offers a","page_number":212,"box":{"x":70,"y":82,"width":806,"height":12}},{"id":"ebfee26a-b602-4de8-8426-b451966c1dfd","block_type":"box","text":"range of proxy voting policies to reflect clients’ individual investment choices and goals.","page_number":212,"box":{"x":69,"y":98,"width":624,"height":11}},{"id":"8fded173-30c3-4202-bd6f-bf3801d94c4b","block_type":"box","text":"BlackRock Investment Stewardship (BIS) is responsible for stewardship activities in relation to clients’ assets","page_number":212,"box":{"x":102,"y":120,"width":781,"height":11}},{"id":"171719db-b9c5-423e-b1a7-bc54110b72e3","block_type":"box","text":"invested in index equity strategies. BIS takes a long-term approach in our stewardship efforts, reflecting the","page_number":212,"box":{"x":70,"y":135,"width":769,"height":12}},{"id":"ea535607-efaa-4442-bdc3-3fd5378e9768","block_type":"box","text":"investment horizons of the majority of our clients. BIS does this through:","page_number":212,"box":{"x":70,"y":150,"width":514,"height":12}},{"id":"eb3230b3-6e88-43ca-9b6c-f72d6aee8049","block_type":"box","text":"1. Engaging with the boards and management of companies","page_number":212,"box":{"x":69,"y":171,"width":451,"height":11}},{"id":"54bacf0a-a99c-4821-a851-2b04ebcde52e","block_type":"box","text":"in which clients are invested to deepen our","page_number":212,"box":{"x":527,"y":171,"width":305,"height":11}},{"id":"0bb80e21-f348-4296-b3e5-178010ebe098","block_type":"box","text":"understanding of a company’s business model, including how they are overseeing material business risks and","page_number":212,"box":{"x":102,"y":186,"width":784,"height":11}},{"id":"c5abb401-384f-465f-89f4-6089b26c00db","block_type":"box","text":"opportunities over time, and to help inform our voting on behalf of clients.","page_number":212,"box":{"x":102,"y":201,"width":526,"height":11}},{"id":"3c79ead8-6c35-44e2-b4fb-177161c1a4df","block_type":"box","text":"1","page_number":212,"box":{"x":630,"y":201,"width":4,"height":5}},{"id":"4d9eac2d-f63a-4474-8236-d66e6d4a628e","block_type":"box","text":"2. Voting at shareholder meetings","page_number":212,"box":{"x":69,"y":221,"width":260,"height":11}},{"id":"340a6d82-ed2a-44b3-841d-5365fbf99b08","block_type":"box","text":"on management and shareholder proposals for clients who have authorized BIS","page_number":212,"box":{"x":335,"y":221,"width":566,"height":11}},{"id":"491ca56c-e802-4a04-a91d-3e66a8661411","block_type":"box","text":"to vote on their behalf.","page_number":212,"box":{"x":101,"y":236,"width":160,"height":9}},{"id":"57b53fd6-5886-4cc1-8ac7-e5d8512a0076","block_type":"box","text":"3. Contributing to industry dialogue on stewardship","page_number":212,"box":{"x":69,"y":256,"width":388,"height":11}},{"id":"1d9ee28f-84bb-45f4-9042-4ef5ddbff761","block_type":"box","text":"to share our perspectives on matters that may impact our","page_number":212,"box":{"x":462,"y":257,"width":412,"height":10}},{"id":"7d5994df-9f4e-4336-9103-e622075e1bc2","block_type":"box","text":"clients’ investments.","page_number":212,"box":{"x":101,"y":272,"width":147,"height":8}},{"id":"42b15fd3-fc5c-4740-8cf3-1a958fe0c2c5","block_type":"box","text":"4. Reporting on our activities to inform clients","page_number":212,"box":{"x":69,"y":292,"width":351,"height":11}},{"id":"13ed149d-a8d7-418e-9511-2953a340d647","block_type":"box","text":"about our stewardship efforts on their behalf through a range of","page_number":212,"box":{"x":426,"y":292,"width":457,"height":11}},{"id":"a5cef8b7-2494-469c-b0c0-4d2417ddfed7","block_type":"box","text":"publications on our website and direct client communications.","page_number":212,"box":{"x":102,"y":307,"width":439,"height":11}},{"id":"c9a3d63d-b50e-466e-9f13-9a0cc8fe560a","block_type":"box","text":"This document provides an overarching explanation of the principles that guide our approach to engaging and","page_number":212,"box":{"x":101,"y":329,"width":778,"height":12}},{"id":"d6a5270e-0d8c-41f8-b256-5bedd6e1635d","block_type":"box","text":"voting on corporate governance matters and other material risks and opportunities under BIS’ Benchmark Policies.","page_number":212,"box":{"x":68,"y":345,"width":817,"height":11}},{"id":"3cba291b-7ce3-40e0-b5ed-7b595e98cee8","block_type":"box","text":"The BIS Benchmark Policies – which are comprised of the BIS Global Principles, regional voting guidelines, and","page_number":212,"box":{"x":68,"y":360,"width":790,"height":11}},{"id":"fdcfad4d-cd50-47ee-abf3-2466cd750738","block_type":"box","text":"Engagement Priorities – apply to clients’ assets invested through index equity strategies, take a financial materiality","page_number":212,"box":{"x":70,"y":375,"width":829,"height":11}},{"id":"adc3f42a-676a-4822-bb10-f10a61d39c5f","block_type":"box","text":"based approach, and are focused solely on advancing clients’ long-term financial interests.","page_number":212,"box":{"x":69,"y":390,"width":648,"height":11}},{"id":"33bc02d0-cbc0-455a-8ae5-ec68c1433b5c","block_type":"box","text":"2","page_number":212,"box":{"x":718,"y":390,"width":4,"height":5}},{"id":"26cc3dc0-5366-4aa7-861f-3d75ab69c527","block_type":"box","text":"PHILOSOPHY ON INVESTMENT STEWARDSHIP","page_number":212,"box":{"x":321,"y":420,"width":337,"height":9}},{"id":"e1510a79-ebd3-4ab6-a0f3-bae00d917877","block_type":"box","text":"Sound governance is critical to a company’s ability to create long-term financial value. We maintain global","page_number":212,"box":{"x":102,"y":443,"width":751,"height":11}},{"id":"d934b0d2-324d-409f-a093-ec49207fd046","block_type":"box","text":"principles on corporate governance, which guide our approach to stewardship across jurisdictions, while recognizing","page_number":212,"box":{"x":70,"y":458,"width":824,"height":11}},{"id":"12257f97-01d8-48a3-86f5-5b211693aec3","block_type":"box","text":"the unique characteristics of the different markets where companies operate.","page_number":212,"box":{"x":68,"y":473,"width":553,"height":11}},{"id":"931ea579-d46e-49eb-a382-83177a795a06","block_type":"box","text":"Setting, executing, and overseeing strategy are the responsibility of management and the board. As one of many","page_number":212,"box":{"x":102,"y":496,"width":802,"height":11}},{"id":"611a01ba-994b-463c-9ae0-5ca71cb72624","block_type":"box","text":"minority shareholders in public companies, BlackRock does not direct a company’s strategy or its implementation,","page_number":212,"box":{"x":69,"y":511,"width":813,"height":11}},{"id":"ecf94ccd-05a8-451a-8a14-557f2df63857","block_type":"box","text":"nor how they should manage material business risks. Our role, on behalf of clients as long-term investors, is to better","page_number":212,"box":{"x":69,"y":526,"width":840,"height":11}},{"id":"7ceef69d-6d88-4cec-912c-167157559cd8","block_type":"box","text":"understand how corporate leadership is managing material risks and capitalizing on opportunities to help protect and","page_number":212,"box":{"x":69,"y":541,"width":835,"height":11}},{"id":"1f5081bd-257c-42de-9d85-7ffd99b00dca","block_type":"box","text":"enhance the company’s ability to deliver long-term financial returns.","page_number":212,"box":{"x":69,"y":556,"width":481,"height":11}},{"id":"31545fa3-3a81-4312-af39-14068831b56f","block_type":"box","text":"STEWARDSHIP IN PRACTICE","page_number":212,"box":{"x":384,"y":586,"width":210,"height":9}},{"id":"b136678c-ed1a-4e3a-93a4-33c00e8723f9","block_type":"box","text":"The assets BlackRock manages belong to our clients, which include public and private pension plans, insurers,","page_number":212,"box":{"x":101,"y":609,"width":791,"height":11}},{"id":"a02b21df-52b8-4c74-82e6-fe307ddef9f1","block_type":"box","text":"official institutions, endowments, universities, charities, family offices, wealth managers, and ultimately, the","page_number":212,"box":{"x":69,"y":624,"width":772,"height":11}},{"id":"7d548705-7601-489a-9ed0-ab0914f6ae57","block_type":"box","text":"individual investors that they serve. Through stewardship, we assess how companies are creating long-term financial","page_number":212,"box":{"x":70,"y":639,"width":831,"height":12}},{"id":"0d62f011-efcb-4427-88a2-0f9d15799cf5","block_type":"box","text":"value to serve our clients, many of whom are saving for long-term goals, such as retirement. Our stewardship","page_number":212,"box":{"x":68,"y":654,"width":780,"height":12}},{"id":"0eecfcf8-4911-44a4-91b5-684d96f79868","block_type":"box","text":"program - including when engaging with companies and voting at shareholder meetings on behalf of clients - is","page_number":212,"box":{"x":70,"y":669,"width":784,"height":12}},{"id":"f29487f9-f7d4-4750-8b81-6fb4205b66fc","block_type":"box","text":"conducted from a long-term investor perspective and takes a financial materiality-based approach, focused solely on","page_number":212,"box":{"x":69,"y":685,"width":828,"height":11}},{"id":"0ffb1b31-7b32-4440-b17f-984e89c3de62","block_type":"box","text":"advancing clients’ long-term financial interests.","page_number":212,"box":{"x":69,"y":700,"width":334,"height":11}},{"id":"56b313cf-50cf-4b95-b9e2-ab1bd670eb1a","block_type":"box","text":"BIS engages with the boards and management of companies in which clients are invested to deepen our","page_number":212,"box":{"x":102,"y":722,"width":745,"height":12}},{"id":"9dd19191-2a7d-4503-8f8a-2eb07d4a20f0","block_type":"box","text":"understanding of a company’s business model, including how they are overseeing material business risks and","page_number":212,"box":{"x":69,"y":738,"width":785,"height":11}},{"id":"1583c647-f366-4c93-be60-3ceb98d5fd4c","block_type":"box","text":"opportunities over time, and to help inform our voting on behalf of clients. Engagements provide companies with the","page_number":212,"box":{"x":69,"y":753,"width":829,"height":11}},{"id":"b4950247-c0cb-4b20-9bfd-b4137c74e67c","block_type":"box","text":"opportunity to share their perspectives on topics that, in BIS’ experience, impact the long-term financial returns","page_number":212,"box":{"x":69,"y":768,"width":795,"height":11}},{"id":"39e8c6d3-1aca-41d1-ad91-060d926e2af7","block_type":"box","text":"BlackRock’s clients depend on to meet their financial goals.","page_number":212,"box":{"x":70,"y":783,"width":425,"height":11}},{"id":"459f8000-a73a-4339-bdb6-05dd14120faf","block_type":"box","text":"1","page_number":212,"box":{"x":69,"y":813,"width":4,"height":4}},{"id":"a505c8fc-4e03-4f62-a536-40cbf6a85650","block_type":"box","text":"On February 11, 2025, the U.S. Securities and Exchange Commission (SEC) staff issued updated guidance for","page_number":212,"box":{"x":79,"y":812,"width":790,"height":11}},{"id":"b50b254b-8562-490b-a8cc-003526319d92","block_type":"box","text":"shareholders to maintain their eligibility to report their beneficial ownership under Schedule 13G of the Exchange Act.","page_number":212,"box":{"x":69,"y":827,"width":836,"height":12}},{"id":"4073bc0e-edfa-4e1c-9136-19adfad94298","block_type":"box","text":"We comply fully with these requirements and do not engage with portfolio companies for the purpose, or with the","page_number":212,"box":{"x":68,"y":842,"width":805,"height":12}},{"id":"1e5bd9bd-f06f-409d-9699-d9450cef3a67","block_type":"box","text":"effect, of changing or influencing control of any company.","page_number":212,"box":{"x":69,"y":857,"width":405,"height":12}},{"id":"2a68c7a0-e714-4fc2-a94d-a2b16de9fcae","block_type":"box","text":"2","page_number":212,"box":{"x":69,"y":876,"width":4,"height":4}},{"id":"2104cd04-f91a-447d-96b1-214f5f125dc4","block_type":"box","text":"Alongside the Global Principles and regional voting guidelines, BIS publishes Engagement Priorities which reflect the","page_number":212,"box":{"x":78,"y":875,"width":827,"height":11}},{"id":"73d340a6-399d-4f0b-b2a8-13dc03040b37","block_type":"box","text":"five themes on which we most frequently engage companies, where they are relevant, as these can be a source of","page_number":212,"box":{"x":68,"y":890,"width":818,"height":12}},{"id":"2b2ba139-507e-46f5-b24e-5cad7b86c8f9","block_type":"box","text":"material business risk or opportunity.","page_number":212,"box":{"x":69,"y":906,"width":264,"height":11}},{"id":"50324db7-ca6d-4b31-a308-8ad11401afcc","block_type":"box","text":"BlackRock Investment Stewardship","page_number":212,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"2201c130-4240-402c-a772-4d876eb3288c","block_type":"box","text":"Global Principles | 3","page_number":212,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"cf696e48-887c-4fcc-b76e-f6ec3ae4e8c8","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":212,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2f63ef05-ceb6-439a-8ba9-57931012e4f9","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":213,"box":{"x":101,"y":45,"width":753,"height":11}},{"id":"d50c093d-7cd0-4093-81d8-72a729e90390","block_type":"box","text":"governance. As a fiduciary, BlackRock is legally required to make proxy voting determinations in a manner that is","page_number":213,"box":{"x":68,"y":60,"width":805,"height":11}},{"id":"95fb6395-886d-42bc-82ff-9dd7242de621","block_type":"box","text":"consistent with the investment objectives of clients who have delegated voting authority to us. BIS’ Benchmark","page_number":213,"box":{"x":69,"y":75,"width":790,"height":11}},{"id":"5e00a1bd-b3e4-4ebe-8570-e574b4554875","block_type":"box","text":"Policies, and the vote decisions made consistent with those policies, reflect our reasonable and independent","page_number":213,"box":{"x":69,"y":90,"width":779,"height":11}},{"id":"9c7169d0-5c53-49d3-8d67-4e8d9eccf89a","block_type":"box","text":"judgment of what is in the long-term financial interests of clients. Our vote decisions are often informed by several","page_number":213,"box":{"x":67,"y":105,"width":816,"height":11}},{"id":"0d72bc6e-f892-4477-a9a4-3f27aa6c6064","block_type":"box","text":"factors, including in-depth analysis of company disclosures, comparisons against industry peers, third-party research,","page_number":213,"box":{"x":68,"y":120,"width":839,"height":12}},{"id":"8ec1ed62-42df-4653-bc01-6d0c1c675480","block_type":"box","text":"and, where appropriate, engagement with companies.","page_number":213,"box":{"x":69,"y":136,"width":381,"height":11}},{"id":"98c450aa-a3b9-4c57-b3e1-41157817b6cc","block_type":"box","text":"Generally, BIS supports the vote recommendations of the board of directors and management at companies","page_number":213,"box":{"x":102,"y":158,"width":770,"height":11}},{"id":"085fda2c-a21a-470e-af9b-2084cba9591b","block_type":"box","text":"which have sound corporate governance and deliver strong financial returns over time. When we determine it is in our","page_number":213,"box":{"x":68,"y":173,"width":838,"height":11}},{"id":"bc1e4906-ce42-416a-aa06-96f5c82d85a6","block_type":"box","text":"clients’ financial interests to convey concern to companies through voting, we may do so in two forms: we might not","page_number":213,"box":{"x":69,"y":188,"width":827,"height":12}},{"id":"4950d231-8c73-4534-bfcb-21a4ac5f36b0","block_type":"box","text":"support the election of directors or other management proposals, or we might not support management’s voting","page_number":213,"box":{"x":69,"y":203,"width":802,"height":12}},{"id":"f417ab8e-d90c-4f77-986c-2083a214c625","block_type":"box","text":"recommendation on a shareholder proposal.","page_number":213,"box":{"x":69,"y":219,"width":315,"height":10}},{"id":"f3a9a8f7-fda1-4c91-aea3-181df1c7f837","block_type":"box","text":"SHAREHOLDER RIGHTS","page_number":213,"box":{"x":403,"y":249,"width":172,"height":9}},{"id":"04a93844-1e0c-457e-a403-4fd325d8ec2a","block_type":"box","text":"BlackRock’s global approach as a shareholder on behalf of our clients is underpinned by certain rights attached","page_number":213,"box":{"x":102,"y":271,"width":796,"height":12}},{"id":"2ba5623e-a3af-4919-8082-7bd1a0eafc9e","block_type":"box","text":"to shareholding in most markets, as established by corporate laws, regulations, and listing rules.","page_number":213,"box":{"x":68,"y":287,"width":693,"height":11}},{"id":"ab6d1fc4-fba1-41e3-9536-10dc764cf883","block_type":"box","text":"3","page_number":213,"box":{"x":763,"y":287,"width":4,"height":4}},{"id":"7a75e5f3-1972-4ade-872d-3c45942cd222","block_type":"box","text":"For example, in","page_number":213,"box":{"x":774,"y":287,"width":106,"height":10}},{"id":"f1bbba14-84a1-43ca-88ff-a0abd9d023f4","block_type":"box","text":"most markets, shareholders have the right to:","page_number":213,"box":{"x":69,"y":302,"width":326,"height":11}},{"id":"2fdd4b06-eb31-4d33-9121-0bff932af67e","block_type":"box","text":"•","page_number":213,"box":{"x":69,"y":325,"width":6,"height":4}},{"id":"364fa13f-5843-4d8c-9905-cc1350516386","block_type":"box","text":"Vote to elect, remove, and nominate directors, approve the appointment of the auditor, and amend the corporate","page_number":213,"box":{"x":101,"y":322,"width":804,"height":11}},{"id":"b7d2cc7a-d702-42c3-9e74-84bb6e568f10","block_type":"box","text":"charter or bylaws.","page_number":213,"box":{"x":101,"y":337,"width":126,"height":11}},{"id":"5853c95f-6f80-4475-8fd6-f815ff84d7af","block_type":"box","text":"•","page_number":213,"box":{"x":69,"y":360,"width":6,"height":5}},{"id":"1d219dd2-f8a0-4ad8-805b-88019f7f32b9","block_type":"box","text":"Vote on key board decisions that are material to the protection of their investment, including but not limited to,","page_number":213,"box":{"x":101,"y":357,"width":789,"height":11}},{"id":"2ad75c0b-c6cd-47e2-816a-0dace06809c6","block_type":"box","text":"changes to the purpose of the business, dilution levels, and pre-emptive rights.","page_number":213,"box":{"x":101,"y":372,"width":564,"height":11}},{"id":"ad855cd7-8bf3-4b47-8655-c3225aaec356","block_type":"box","text":"•","page_number":213,"box":{"x":69,"y":395,"width":6,"height":5}},{"id":"ed4df3f8-af18-41e1-b5d4-c46ab129ce77","block_type":"box","text":"Access sufficient and timely information on governance, strategic, and business matters — where such matters","page_number":213,"box":{"x":101,"y":392,"width":799,"height":12}},{"id":"0b48e949-84fb-40fb-aacd-01d043d9eb2f","block_type":"box","text":"are material — to make informed decisions.","page_number":213,"box":{"x":102,"y":407,"width":313,"height":9}},{"id":"adcbc268-5b96-4f86-88e8-5e397115194c","block_type":"box","text":"KEY GOVERNANCE TOPICS","page_number":213,"box":{"x":391,"y":438,"width":196,"height":9}},{"id":"c6fee9a7-8113-40e6-892d-8e45bbe61ed2","block_type":"box","text":"In our experience, there are certain globally applicable elements of corporate governance that contribute to a","page_number":213,"box":{"x":102,"y":460,"width":776,"height":12}},{"id":"65e2c621-eb0a-4d6b-9b07-117bd62ff3c5","block_type":"box","text":"company’s ability to create long-term financial value for shareholders. These are topics that shareholders may have","page_number":213,"box":{"x":69,"y":475,"width":822,"height":12}},{"id":"1f496c9b-e95e-46b2-b8bd-af2aac3f47a4","block_type":"box","text":"the ability to vote on at shareholder meetings. These areas include:","page_number":213,"box":{"x":68,"y":491,"width":482,"height":11}},{"id":"07ae135c-4df9-4a1a-a8a4-8b5678fb4a0f","block_type":"box","text":"•","page_number":213,"box":{"x":69,"y":514,"width":6,"height":4}},{"id":"8ab1351c-6cea-4271-bbcb-9672a84acb47","block_type":"box","text":"Boards and directors","page_number":213,"box":{"x":102,"y":511,"width":147,"height":9}},{"id":"700d6a78-d561-4e29-a101-daf8a6c192cd","block_type":"box","text":"•","page_number":213,"box":{"x":69,"y":534,"width":6,"height":4}},{"id":"8dcdbdb8-a941-43ad-9ef8-fbd4972c7c9e","block_type":"box","text":"Auditors and audit-related issues","page_number":213,"box":{"x":101,"y":531,"width":234,"height":9}},{"id":"6a71a7d0-31b8-4a7a-adbb-64f70a49458a","block_type":"box","text":"•","page_number":213,"box":{"x":69,"y":554,"width":6,"height":5}},{"id":"36d83e36-7c2d-4ad2-adfc-fce0f544f689","block_type":"box","text":"Capital structure, mergers, acquisitions, asset sales, and other special situations","page_number":213,"box":{"x":102,"y":551,"width":583,"height":11}},{"id":"6c80c863-1534-4cd1-865a-04c0242d1013","block_type":"box","text":"•","page_number":213,"box":{"x":69,"y":574,"width":6,"height":5}},{"id":"3ce5018e-f2fd-4c6f-80fe-39b39909b755","block_type":"box","text":"Executive compensation","page_number":213,"box":{"x":102,"y":571,"width":170,"height":11}},{"id":"835226e4-4ac0-404a-9857-d8055959cea4","block_type":"box","text":"•","page_number":213,"box":{"x":69,"y":594,"width":6,"height":5}},{"id":"ebc6f801-7f7e-430a-92d3-e801c8621690","block_type":"box","text":"Shareholder protections and other significant corporate governance matters","page_number":213,"box":{"x":102,"y":591,"width":539,"height":12}},{"id":"ea944a07-ef1a-41cd-9851-4174dbe6e4a0","block_type":"box","text":"•","page_number":213,"box":{"x":69,"y":614,"width":6,"height":5}},{"id":"b8806672-5e4c-459e-b738-72fa3be34e8a","block_type":"box","text":"Shareholder proposals","page_number":213,"box":{"x":102,"y":612,"width":160,"height":11}},{"id":"5415ff63-be52-4e7b-9a49-47c7bd67b3d2","block_type":"box","text":"The BIS Benchmark Policies are not prescriptive but rather are applied on a pragmatic basis, taking into","page_number":213,"box":{"x":101,"y":634,"width":740,"height":12}},{"id":"e8a1e372-36d4-4cfa-b597-d63a0eb1eb4d","block_type":"box","text":"consideration a number of company-specific factors, including the sector, market, and business environment within","page_number":213,"box":{"x":69,"y":649,"width":819,"height":12}},{"id":"eadf9224-8244-4907-9aaf-78bbdb6aedab","block_type":"box","text":"which companies operate.","page_number":213,"box":{"x":68,"y":665,"width":186,"height":10}},{"id":"969085b4-2192-4b46-993c-9e65b3627918","block_type":"box","text":"At the regional level, it is our view that companies should observe the accepted corporate governance standards","page_number":213,"box":{"x":101,"y":687,"width":803,"height":11}},{"id":"c221a445-8d00-4d68-9a61-0bc221abd665","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":213,"box":{"x":70,"y":702,"width":785,"height":11}},{"id":"e97baf8d-e9bc-4e70-94c3-b11ec8faf118","block_type":"box","text":"supports durable, long-term financial value creation. Our regional voting guidelines explain how the BIS Global","page_number":213,"box":{"x":69,"y":717,"width":781,"height":12}},{"id":"b6fb9cfb-f491-4b2b-a24f-5506848665fb","block_type":"box","text":"Principles inform our voting decisions in relation to common ballot items for shareholder meetings in those markets.","page_number":213,"box":{"x":69,"y":732,"width":829,"height":12}},{"id":"6d34eb8d-9605-4604-9ebc-85ed749d9f8c","block_type":"box","text":"4","page_number":213,"box":{"x":899,"y":733,"width":5,"height":4}},{"id":"0c8be1f9-97b0-4e1e-b8d7-0602ea7b82f1","block_type":"box","text":"3","page_number":213,"box":{"x":69,"y":762,"width":4,"height":5}},{"id":"c9d35a1f-1602-4fe2-a415-f90315ca34ca","block_type":"box","text":"Examples include: Government of Canada, “Canada Business Corporations Act,” amended 2024; European Union,","page_number":213,"box":{"x":79,"y":762,"width":816,"height":11}},{"id":"a960a75b-c618-4d87-b9ec-2c706d460652","block_type":"box","text":"“Shareholder Rights Directive II,” 2017; and the China Securities Regulatory Commission, “Code of Corporate","page_number":213,"box":{"x":70,"y":777,"width":784,"height":11}},{"id":"d7095074-f276-42e6-b387-657a28912226","block_type":"box","text":"Governance for Listed Companies in China,” 2001. Websites accessed in December 2025.","page_number":213,"box":{"x":69,"y":792,"width":650,"height":11}},{"id":"6af2e988-6bb3-47a4-8bd2-5d2005b1f597","block_type":"box","text":"4","page_number":213,"box":{"x":69,"y":810,"width":4,"height":4}},{"id":"29705cc6-069e-41da-92c8-6e18c6c5a95f","block_type":"box","text":"Our regional voting guidelines reflect these different market standards and norms. Depending on the market,","page_number":213,"box":{"x":79,"y":810,"width":776,"height":11}},{"id":"4a390d1d-68c3-4ad8-80ab-4414465883a9","block_type":"box","text":"generally accepted practice is informed by corporate law, market regulation, best practices, and industry initiatives,","page_number":213,"box":{"x":68,"y":825,"width":821,"height":11}},{"id":"8555b763-0d4d-426e-bf9b-47bfb378e3a0","block_type":"box","text":"amongst other factors. BIS carries out engagement with companies, executes proxy votes, and conducts vote","page_number":213,"box":{"x":69,"y":840,"width":780,"height":11}},{"id":"05682e30-75d5-4875-adcd-20c1e4028137","block_type":"box","text":"operations (including maintaining records of votes cast) in a manner consistent with the relevant regional voting","page_number":213,"box":{"x":69,"y":855,"width":796,"height":11}},{"id":"eb9532b4-bd6a-4090-acac-372a445649c0","block_type":"box","text":"guidelines.","page_number":213,"box":{"x":68,"y":870,"width":76,"height":11}},{"id":"2ae6cc03-1490-478b-bdad-a08b051b6df2","block_type":"box","text":"BlackRock Investment Stewardship","page_number":213,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"2f127e06-e13f-4ff1-a0c8-52702fa16a3a","block_type":"box","text":"Global Principles | 4","page_number":213,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"f8c48269-0e5f-45ff-b36c-78cf5708419c","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":213,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9593e0f9-e80e-4684-895b-e0d1bce2815d","block_type":"box","text":"BOARDS AND DIRECTORS","page_number":214,"box":{"x":394,"y":45,"width":190,"height":9}},{"id":"93a3662e-c0bc-402f-b91b-c32d4688cece","block_type":"box","text":"Oversight role of the board","page_number":214,"box":{"x":69,"y":75,"width":194,"height":11}},{"id":"c35d9993-07ea-40e2-b64a-ecf52da184b9","block_type":"box","text":"Companies whose boards are comprised of appropriately qualified, engaged directors with professional","page_number":214,"box":{"x":102,"y":98,"width":734,"height":11}},{"id":"5b8b8264-752b-4d91-bc5f-3b25c89eb4b4","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":214,"box":{"x":69,"y":113,"width":806,"height":11}},{"id":"0f924f3d-96b8-42ed-8ca3-7eb4a6c51868","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":214,"box":{"x":69,"y":128,"width":822,"height":11}},{"id":"47babd5d-bddd-4e2d-8ecb-ee9a661d1a36","block_type":"box","text":"advantage, providing valuable oversight and contributing to the most important management decisions that support","page_number":214,"box":{"x":69,"y":143,"width":825,"height":11}},{"id":"88d59db0-9857-4f3f-af56-1e4c70a16e45","block_type":"box","text":"long-term financial performance.","page_number":214,"box":{"x":70,"y":158,"width":229,"height":11}},{"id":"307f596a-2a9f-464c-9faa-f688f88e28ed","block_type":"box","text":"For this reason, our investment stewardship efforts focus on the effectiveness of the board of directors. We","page_number":214,"box":{"x":102,"y":181,"width":771,"height":11}},{"id":"9a7fc10e-7056-4cbd-a1cb-ab7342b9ca27","block_type":"box","text":"engage, as necessary, with members of the board’s nominating and/or governance committee to assess whether","page_number":214,"box":{"x":69,"y":196,"width":811,"height":11}},{"id":"962e212b-b9fe-4345-a0b7-4ede79fef744","block_type":"box","text":"governance practices and board composition are effective given a company’s business model, sector, market, and","page_number":214,"box":{"x":68,"y":211,"width":817,"height":11}},{"id":"3741c58e-8af1-45ac-9ac1-f3a2d48d14ab","block_type":"box","text":"the business environment in which a company is operating.","page_number":214,"box":{"x":68,"y":226,"width":422,"height":11}},{"id":"9f848ece-ab8d-4f4b-9588-5e427d23db3a","block_type":"box","text":"We consider it good practice when the board establishes and maintains a framework of robust and effective","page_number":214,"box":{"x":101,"y":249,"width":770,"height":11}},{"id":"080968fb-2d6c-4c02-8f1a-066b11f562fa","block_type":"box","text":"governance mechanisms that supports its oversight of the company’s strategy and operations, consistent with the","page_number":214,"box":{"x":68,"y":264,"width":817,"height":11}},{"id":"524716e7-5744-47fd-9cb6-871a399136f1","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":214,"box":{"x":70,"y":279,"width":799,"height":11}},{"id":"1d8ed8f3-979c-4c23-a6cb-adf2206c501d","block_type":"box","text":"committees of the board and how directors engage with and oversee management, as well as disclosure of material","page_number":214,"box":{"x":69,"y":294,"width":827,"height":11}},{"id":"979f198d-d39f-4062-9bf1-a26379a3f22d","block_type":"box","text":"risks that may affect a company’s long-term strategy and how management is effectively identifying, managing, and","page_number":214,"box":{"x":69,"y":309,"width":822,"height":11}},{"id":"039849ee-60ac-4c20-8631-7ab86a74f14f","block_type":"box","text":"mitigating such risks.","page_number":214,"box":{"x":69,"y":325,"width":150,"height":11}},{"id":"dbba895e-a31d-4a88-a2a9-1ec448be2c79","block_type":"box","text":"Understanding management’s long-term strategy and the milestones against which investors should assess its","page_number":214,"box":{"x":102,"y":347,"width":791,"height":11}},{"id":"9bbf79c9-32a3-494e-b20e-ecb2c9bc17a5","block_type":"box","text":"implementation is central to our approach. If any strategic targets are significantly missed or materially restated, we","page_number":214,"box":{"x":70,"y":362,"width":826,"height":11}},{"id":"24ea71e2-4cca-4845-ad2f-0d1b249ff88c","block_type":"box","text":"find it helpful when company disclosures provide a detailed explanation of the changes and an indication of the","page_number":214,"box":{"x":68,"y":377,"width":793,"height":12}},{"id":"e67b9f86-caa3-4d8d-9c2e-4c7aa8b6712f","block_type":"box","text":"board’s role in reviewing the revised targets. We look to the board to articulate the effectiveness of these","page_number":214,"box":{"x":69,"y":392,"width":755,"height":12}},{"id":"e7bbc278-170d-4ac1-819e-d1bb86bbf2a2","block_type":"box","text":"mechanisms in overseeing the management of business risks and opportunities and the fulfillment of the company’s","page_number":214,"box":{"x":69,"y":407,"width":835,"height":12}},{"id":"97f2b085-d201-4368-a3c3-8404d808cb09","block_type":"box","text":"strategy.","page_number":214,"box":{"x":69,"y":423,"width":58,"height":11}},{"id":"f98f0c19-534d-4d74-b6e4-5e416055d4c1","block_type":"box","text":"Where a company has not adequately disclosed or demonstrated that its board has fulfilled these corporate","page_number":214,"box":{"x":101,"y":445,"width":769,"height":11}},{"id":"29f1056b-8ef4-44f3-94d9-5ba55c2de4fa","block_type":"box","text":"governance and risk oversight responsibilities, we may consider not supporting the election of directors who, in our","page_number":214,"box":{"x":68,"y":460,"width":823,"height":12}},{"id":"b146202e-abad-4577-b571-32788dd5f58c","block_type":"box","text":"assessment, have particular responsibility for the issues.","page_number":214,"box":{"x":69,"y":475,"width":409,"height":12}},{"id":"8b0c6120-23f2-45d5-8dec-a563c874be2c","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":214,"box":{"x":101,"y":498,"width":791,"height":11}},{"id":"79cdcce0-8472-44fb-8227-d3df26e39990","block_type":"box","text":"the board’s effectiveness as a group include the relevance of individual directors’ qualifications and skillsets, as well","page_number":214,"box":{"x":68,"y":513,"width":836,"height":12}},{"id":"dc67b007-ac4b-455f-825d-60a497a38c11","block_type":"box","text":"as directors’ capacity and other time commitments, and how these factors may contribute to the company’s financial","page_number":214,"box":{"x":69,"y":528,"width":833,"height":12}},{"id":"8399995d-6be4-4df2-a70e-d565847a8742","block_type":"box","text":"performance. We look to boards to establish formal and transparent processes for nominating directors that reflect","page_number":214,"box":{"x":70,"y":543,"width":823,"height":12}},{"id":"f91264cf-9f52-4d17-aa78-7465d601e090","block_type":"box","text":"the company’s long-term strategy and business model.","page_number":214,"box":{"x":68,"y":559,"width":390,"height":11}},{"id":"cff4f916-dfe6-4275-a584-822e356de1cd","block_type":"box","text":"In the section titled “Board quality and effectiveness” below, we provide more detail about our approach to board","page_number":214,"box":{"x":102,"y":581,"width":807,"height":11}},{"id":"fdacdc5b-da11-4563-975d-792949afaf92","block_type":"box","text":"composition and how it underpins board effectiveness and long-term financial value creation.","page_number":214,"box":{"x":69,"y":596,"width":662,"height":12}},{"id":"7385bdb5-2acb-41d6-b36a-03f9c820f054","block_type":"box","text":"Regular accountability through director elections","page_number":214,"box":{"x":69,"y":627,"width":358,"height":11}},{"id":"4b043130-a653-4839-b742-13f08f32666f","block_type":"box","text":"The election of directors to the board is a right of shareholders and an important signal of support for, or","page_number":214,"box":{"x":101,"y":649,"width":750,"height":12}},{"id":"0566dd64-ec0d-48d6-a74a-598f8aa77e0d","block_type":"box","text":"concern about, the performance of the board in overseeing and advising management. To ensure accountability for","page_number":214,"box":{"x":69,"y":664,"width":819,"height":12}},{"id":"dcb2a209-d508-4040-8ef0-28a7ee05b883","block_type":"box","text":"their decisions on behalf of shareholders, directors should stand for election on a regular basis, ideally annually.","page_number":214,"box":{"x":68,"y":680,"width":802,"height":11}},{"id":"6c2b93b2-cf3d-4ad6-bd12-3a88c4f1b3b0","block_type":"box","text":"5","page_number":214,"box":{"x":872,"y":680,"width":4,"height":4}},{"id":"2dc1cc2a-8899-433c-88d1-c7e38476467f","block_type":"box","text":"Annual director elections allow shareholders to reaffirm their support for, or concerns about, board members’","page_number":214,"box":{"x":68,"y":695,"width":782,"height":11}},{"id":"11e45f5e-0d6a-40ad-aba0-d7d006585a3b","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":214,"box":{"x":69,"y":710,"width":832,"height":11}},{"id":"bea1962b-46bc-49a0-8cf4-981f9a2c17f0","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":214,"box":{"x":68,"y":725,"width":832,"height":11}},{"id":"b3252ac9-9ce0-41d6-bf23-085969559860","block_type":"box","text":"with a proportion of directors being put forward for election at each shareholder meeting.","page_number":214,"box":{"x":68,"y":740,"width":636,"height":11}},{"id":"211eb2b9-468d-4e02-aaa2-fb9138c42721","block_type":"box","text":"BOARD QUALITY AND EFFECTIVENESS","page_number":214,"box":{"x":348,"y":770,"width":282,"height":11}},{"id":"e5a161f1-6c93-43a6-bfd2-24eb598278cd","block_type":"box","text":"Regular director elections also give boards the opportunity to adjust their composition in an orderly way to reflect","page_number":214,"box":{"x":102,"y":793,"width":805,"height":11}},{"id":"4d07379c-3766-4f59-9cad-a750728451e5","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":214,"box":{"x":69,"y":808,"width":831,"height":11}},{"id":"e5bebd01-c693-430f-b864-a07abc6c5caf","block_type":"box","text":"be brought onto the board periodically to refresh the group’s thinking, while supporting both continuity and","page_number":214,"box":{"x":69,"y":823,"width":758,"height":12}},{"id":"e585fd24-5a27-47e7-b072-a897258d881b","block_type":"box","text":"5","page_number":214,"box":{"x":69,"y":853,"width":4,"height":4}},{"id":"d277ffdc-6c61-4ac6-9644-d59cc2915cae","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":214,"box":{"x":79,"y":852,"width":795,"height":12}},{"id":"b18b796f-7459-4498-a30f-f691022fc276","block_type":"box","text":"market regulation or voluntary best practice.","page_number":214,"box":{"x":69,"y":868,"width":314,"height":11}},{"id":"aea7c82b-0bb7-400a-8484-4a8975d5fdfc","block_type":"box","text":"BlackRock Investment Stewardship","page_number":214,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"1efd8d8d-5f51-4da3-96fb-0bf8b77928f9","block_type":"box","text":"Global Principles | 5","page_number":214,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"9e1be559-4a33-482f-9fb1-d68cfbf844b4","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":214,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9850616a-39b0-41cd-9d34-9f92d7e96e44","block_type":"box","text":"appropriate succession planning. We consider the average overall tenure of the board and seek a balance between","page_number":215,"box":{"x":69,"y":45,"width":819,"height":11}},{"id":"b6b8c86a-bbad-440c-8cab-4d7f99bf2264","block_type":"box","text":"the knowledge and experience of longer-serving directors and the fresh perspectives of directors who joined more","page_number":215,"box":{"x":68,"y":60,"width":809,"height":11}},{"id":"866daa35-5890-474d-bc83-d2788458d72a","block_type":"box","text":"recently.","page_number":215,"box":{"x":69,"y":75,"width":57,"height":11}},{"id":"88587ca0-bddd-4738-9e3c-4aca95006981","block_type":"box","text":"We appreciate when companies regularly review and assess how directors nominated for election contribute to","page_number":215,"box":{"x":101,"y":98,"width":789,"height":11}},{"id":"a5bdd2f8-6a7f-4b21-bb42-8918dc0d7b81","block_type":"box","text":"the effectiveness of the board. In our view, the company’s assessment should consider a number of factors,","page_number":215,"box":{"x":68,"y":113,"width":774,"height":11}},{"id":"00eef37a-3cad-4872-816e-ecee13cf9035","block_type":"box","text":"including each director’s independence and time commitments, as well as the breadth and relevance of director","page_number":215,"box":{"x":70,"y":128,"width":798,"height":11}},{"id":"6698d899-6c6a-4140-a1d8-8de9486d8baf","block_type":"box","text":"experiences and skillsets, and how these collectively contribute to the board’s effectiveness in advising and","page_number":215,"box":{"x":69,"y":143,"width":770,"height":11}},{"id":"e02880ef-e43e-4b16-bc5d-ca6060b284d0","block_type":"box","text":"overseeing management in delivering long-term financial returns.","page_number":215,"box":{"x":69,"y":158,"width":459,"height":11}},{"id":"e20cc507-4bdd-487b-b758-59f7c5d24f36","block_type":"box","text":"Director independence","page_number":215,"box":{"x":69,"y":188,"width":164,"height":11}},{"id":"b3ca99a4-f4e3-493e-8eb1-f83891bb7ee4","block_type":"box","text":"Director independence — from management, significant shareholders, or other related parties — is a central","page_number":215,"box":{"x":102,"y":211,"width":777,"height":11}},{"id":"1e8bd919-b829-4cdc-9b73-616e5fa152a3","block_type":"box","text":"tenet of sound corporate governance across markets.","page_number":215,"box":{"x":68,"y":226,"width":382,"height":11}},{"id":"a6fd1815-034d-4148-bb0f-471cfb675a40","block_type":"box","text":"6","page_number":215,"box":{"x":452,"y":226,"width":4,"height":5}},{"id":"791f0c36-b8c8-4047-8490-aebad63fbfe5","block_type":"box","text":"We look to boards to have a sufficient number of independent","page_number":215,"box":{"x":462,"y":226,"width":442,"height":11}},{"id":"e7052c31-3b92-4e90-a342-e36b6b639a66","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":215,"box":{"x":69,"y":241,"width":825,"height":11}},{"id":"cf4071bb-b7d8-4a73-a2db-58cae09d8397","block_type":"box","text":"and its ability to oversee management. We generally consider it good practice for independent directors to make a","page_number":215,"box":{"x":69,"y":256,"width":813,"height":12}},{"id":"1a14b48f-9fcf-4f82-beb3-2aafadd1fc33","block_type":"box","text":"majority of the board, or in the case of controlled companies, at least one-third.","page_number":215,"box":{"x":69,"y":271,"width":566,"height":12}},{"id":"3e461b13-f5cf-42ad-8001-b3b87e0710a7","block_type":"box","text":"Common impediments to independence may include but are not limited to:","page_number":215,"box":{"x":102,"y":294,"width":531,"height":11}},{"id":"243052d6-5256-4d58-8f92-79a385234c96","block_type":"box","text":"•","page_number":215,"box":{"x":69,"y":317,"width":6,"height":5}},{"id":"0e886d3f-04d5-40a9-956a-5457f16e0795","block_type":"box","text":"Current or recent employment at the company or a subsidiary","page_number":215,"box":{"x":102,"y":314,"width":438,"height":11}},{"id":"c24175de-da85-4b97-b4b4-7e9a3cfd8137","block_type":"box","text":"•","page_number":215,"box":{"x":69,"y":337,"width":6,"height":5}},{"id":"d5f34ccb-11b7-44bf-8d5a-160f247729e3","block_type":"box","text":"Being, or representing, a shareholder with a substantial shareholding in the company","page_number":215,"box":{"x":102,"y":335,"width":606,"height":11}},{"id":"87792785-b418-420a-a761-3237da67a9de","block_type":"box","text":"•","page_number":215,"box":{"x":69,"y":357,"width":6,"height":5}},{"id":"ad708752-1196-4a52-87bd-8e1c49c1409a","block_type":"box","text":"Interlocking directorates","page_number":215,"box":{"x":102,"y":355,"width":170,"height":11}},{"id":"c40f5a7e-013e-4a22-b03a-cfb531ae5323","block_type":"box","text":"•","page_number":215,"box":{"x":69,"y":378,"width":6,"height":4}},{"id":"f1d9fcdb-34a6-40ff-8999-598a30fbc4d7","block_type":"box","text":"Having any other interest, business, or other relationship which could, or could reasonably be perceived to,","page_number":215,"box":{"x":102,"y":375,"width":761,"height":11}},{"id":"ca1d8bc5-ef73-4a10-a846-58981f4c79c5","block_type":"box","text":"materially interfere with a director’s ability to act in the best interests of the company and shareholders","page_number":215,"box":{"x":102,"y":390,"width":738,"height":11}},{"id":"456ec6ba-e0a4-4e68-afaf-a4f74af38bdc","block_type":"box","text":"In our experience, boards are most effective at overseeing and advising management when there is a senior,","page_number":215,"box":{"x":102,"y":412,"width":775,"height":12}},{"id":"91083e6d-89c2-4af8-9ace-3130d8f590e1","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":215,"box":{"x":70,"y":428,"width":827,"height":11}},{"id":"b4363d54-dfee-4e39-9b4c-3f614e80a5b3","block_type":"box","text":"independent), be designated as a lead independent director. The role of this director is to support independent board","page_number":215,"box":{"x":70,"y":443,"width":835,"height":11}},{"id":"f39d7567-cabd-4916-9db1-001595658c9f","block_type":"box","text":"members in fulfilling their oversight responsibilities effectively by shaping the agenda, ensuring adequate information","page_number":215,"box":{"x":69,"y":458,"width":834,"height":11}},{"id":"e71920c4-d295-495c-b556-6259f6eda28c","block_type":"box","text":"is provided to the board, and encouraging independent director participation in board deliberations. We appreciate","page_number":215,"box":{"x":70,"y":473,"width":813,"height":11}},{"id":"bf30c414-833d-437c-b61a-e30f7c9d9baf","block_type":"box","text":"when the lead independent director or another appropriate director is available to meet with shareholders to explain","page_number":215,"box":{"x":68,"y":488,"width":826,"height":11}},{"id":"5af6165a-67ec-4465-b34e-dae9fd3de0cf","block_type":"box","text":"and contextualize a company’s approach as a situation warrants.","page_number":215,"box":{"x":69,"y":503,"width":463,"height":11}},{"id":"9075712c-771f-4f2a-a748-89b203fd6cbb","block_type":"box","text":"Boards may face matters that could involve conflicts of interest for executives or affiliated directors, or that","page_number":215,"box":{"x":102,"y":526,"width":765,"height":11}},{"id":"e36f2539-f4ea-4063-91fb-9e123cef4bb3","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":215,"box":{"x":69,"y":541,"width":837,"height":11}},{"id":"6f8f685a-6e79-4a94-9ae7-9e1b64711025","block_type":"box","text":"committees with a majority of independent directors, depending on market norms and a company’s ownership","page_number":215,"box":{"x":69,"y":556,"width":784,"height":11}},{"id":"66d112f9-31f4-4fa0-b3df-c2b44aef8fc3","block_type":"box","text":"structure. In many markets, these committees of the board specialize in audit, director nominations, and","page_number":215,"box":{"x":69,"y":571,"width":747,"height":11}},{"id":"5f39968f-4d7a-43d8-b256-230446003f4c","block_type":"box","text":"compensation matters, among others. An ad hoc committee might also be formed to decide on a special transaction,","page_number":215,"box":{"x":69,"y":586,"width":836,"height":12}},{"id":"05012420-65fc-48ab-9cc9-ea8104ac3424","block_type":"box","text":"particularly one involving a related party, or to investigate a significant adverse event.","page_number":215,"box":{"x":70,"y":601,"width":607,"height":12}},{"id":"f7e19f09-bcf1-42e0-b61c-5ee92a2b3258","block_type":"box","text":"Sufficient capacity","page_number":215,"box":{"x":68,"y":632,"width":137,"height":11}},{"id":"0c2010b7-6386-46fd-8e2b-610daf0fa24b","block_type":"box","text":"As the role and expectations of a director are increasingly demanding, directors must be able to commit an","page_number":215,"box":{"x":101,"y":654,"width":763,"height":12}},{"id":"93bcf366-b914-45ba-b09d-ad8a36a8c74e","block_type":"box","text":"appropriate amount of time to board and committee matters. It is important that directors have the capacity to meet","page_number":215,"box":{"x":69,"y":669,"width":830,"height":12}},{"id":"943dc5b2-7eb0-4b36-8807-b7105c927e6c","block_type":"box","text":"all of their responsibilities — including when there are unforeseen events — and therefore, we consider it best","page_number":215,"box":{"x":69,"y":685,"width":791,"height":11}},{"id":"48f646a3-5628-446d-842b-1c94d95df07d","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":215,"box":{"x":70,"y":700,"width":804,"height":11}},{"id":"fe254b63-ffc8-4481-a90a-43c191c1580a","block_type":"box","text":"Board composition","page_number":215,"box":{"x":69,"y":730,"width":135,"height":11}},{"id":"003448e6-3f6c-4a84-8c59-8efa90b96530","block_type":"box","text":"In assessing board composition, we take into account a company’s board size, business model, strategy, market","page_number":215,"box":{"x":102,"y":753,"width":806,"height":11}},{"id":"e1a5ac4d-0752-40c8-a302-1fc4031a47ca","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":215,"box":{"x":69,"y":768,"width":836,"height":11}},{"id":"7cb5cbba-1240-49cf-9607-da8063c8be75","block_type":"box","text":"companies explain how their approach to board composition supports the company’s governance practices.","page_number":215,"box":{"x":69,"y":783,"width":767,"height":11}},{"id":"3a87d2fb-fba9-4992-a41d-b1a76d5ca83f","block_type":"box","text":"When nominating directors to the board, we look to companies to provide sufficient information on the individual","page_number":215,"box":{"x":101,"y":806,"width":802,"height":11}},{"id":"6ae8fc39-90f7-4872-bbf8-4f7632f58362","block_type":"box","text":"candidates so that shareholders can assess the capabilities and suitability of each individual nominee and their fit","page_number":215,"box":{"x":69,"y":821,"width":818,"height":11}},{"id":"f18ed783-8d5f-414c-9741-5b499ca01ea1","block_type":"box","text":"within overall board composition. These disclosures should explain how the collective experience and expertise of the","page_number":215,"box":{"x":68,"y":836,"width":840,"height":11}},{"id":"ddc01f8d-70ff-4aa0-98ce-302e26931de3","block_type":"box","text":"board, as well as the particular skillsets of individual directors, aligns with the company’s long-term strategy. Highly","page_number":215,"box":{"x":69,"y":851,"width":823,"height":11}},{"id":"9c0fce82-1f45-44ea-9579-059dd47d9c77","block_type":"box","text":"6","page_number":215,"box":{"x":69,"y":881,"width":4,"height":4}},{"id":"30fdee93-1c83-4aad-a5f6-deea41f644b6","block_type":"box","text":"For example, please see: Tokyo Stock Exchange, “Japan’s Corporate Governance Code,” June 11, 2021; Financial","page_number":215,"box":{"x":79,"y":880,"width":813,"height":11}},{"id":"95ce4138-572f-4fce-9dcd-98be7b4ac93b","block_type":"box","text":"Reporting Council, “UK Corporate Governance Code,” January 2024, accessed in December 2025.","page_number":215,"box":{"x":70,"y":895,"width":704,"height":12}},{"id":"90cf31a8-17fc-4567-9afd-2cf4d148055b","block_type":"box","text":"BlackRock Investment Stewardship","page_number":215,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"77345625-ef73-4834-baa6-ef5fdb27f936","block_type":"box","text":"Global Principles | 6","page_number":215,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"181d71f3-9571-490a-b0e3-f3b9084da871","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":215,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"697ead2d-5b58-41c0-b08e-5541eec6bf87","block_type":"box","text":"qualified, engaged directors with professional characteristics relevant to a company’s business and strategy enhance","page_number":216,"box":{"x":69,"y":45,"width":836,"height":11}},{"id":"f1812373-094d-4445-afed-6fdf7c127d7e","block_type":"box","text":"the ability of the board to add value and be the voice of shareholders in board discussions.","page_number":216,"box":{"x":68,"y":60,"width":650,"height":11}},{"id":"4596b410-8e06-49ea-be85-f3d39f28f541","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":216,"box":{"x":102,"y":82,"width":775,"height":12}},{"id":"e4689add-426f-45ae-bd1b-c7a4013b385a","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":216,"box":{"x":69,"y":98,"width":806,"height":11}},{"id":"41d6b7ff-7c2f-4d48-a93a-93d7d726c1e9","block_type":"box","text":"oversee management. We note that in many markets, policymakers have set board gender diversity goals which we","page_number":216,"box":{"x":69,"y":113,"width":820,"height":11}},{"id":"a242cc13-959b-452f-abde-c780417b17fe","block_type":"box","text":"may discuss with companies, particularly if there is a risk their board composition may be misaligned.","page_number":216,"box":{"x":69,"y":128,"width":726,"height":11}},{"id":"840283b3-c241-4a46-ae91-376ddfba2c32","block_type":"box","text":"AUDITORS AND AUDIT-RELATED ISSUES","page_number":216,"box":{"x":342,"y":158,"width":293,"height":9}},{"id":"7475f8fb-ced5-4588-8f18-ca63a6bc86c1","block_type":"box","text":"BIS recognizes the critical importance of financial statements to provide a complete and accurate portrayal of a","page_number":216,"box":{"x":102,"y":181,"width":795,"height":11}},{"id":"3ce27140-33a2-42de-a43f-760f7ba2c3c0","block_type":"box","text":"company’s financial condition. Accordingly, we look for the assumptions made by management, and reviewed by the","page_number":216,"box":{"x":69,"y":196,"width":825,"height":11}},{"id":"c01ac47b-834f-414a-8dc7-414feeb2041a","block_type":"box","text":"auditor in preparing the financial statements, to be reasonable and justified.","page_number":216,"box":{"x":69,"y":211,"width":543,"height":11}},{"id":"fd69a3c0-155a-4cd3-96c4-e38a146b9580","block_type":"box","text":"We view the audit committee, or its equivalent, as responsible for overseeing the management of the","page_number":216,"box":{"x":101,"y":234,"width":722,"height":11}},{"id":"2b822e2a-a50d-4ff8-966c-7923bcc44c76","block_type":"box","text":"independent auditor and the internal audit function at a company. The committee plays an important role in a","page_number":216,"box":{"x":70,"y":249,"width":778,"height":11}},{"id":"f94d7ccb-5bdf-47f6-b3ca-b2713f14c687","block_type":"box","text":"company’s financial reporting system by providing independent oversight of the accounts, material financial, and,","page_number":216,"box":{"x":69,"y":264,"width":806,"height":11}},{"id":"ae5976aa-aebc-4efd-bfd5-545b02b452d3","block_type":"box","text":"where appropriate to the jurisdiction, non-financial information and internal control frameworks. Moreover, in the","page_number":216,"box":{"x":68,"y":279,"width":799,"height":11}},{"id":"1a86d6c9-9beb-4d36-bffc-55e5b6eceb3c","block_type":"box","text":"absence of a dedicated risk committee, these committees can provide oversight of Enterprise Risk Management","page_number":216,"box":{"x":69,"y":294,"width":801,"height":11}},{"id":"d698075b-d503-4ac5-a103-956ff18abc6e","block_type":"box","text":"systems.","page_number":216,"box":{"x":69,"y":310,"width":62,"height":10}},{"id":"07382747-d4d3-4388-bed0-cab13a1fd2bb","block_type":"box","text":"7","page_number":216,"box":{"x":133,"y":310,"width":4,"height":4}},{"id":"b695372d-b221-4a1d-90c3-8ae002afe82f","block_type":"box","text":"In our view, effective audit committee oversight strengthens the quality and reliability of a company’s","page_number":216,"box":{"x":144,"y":309,"width":717,"height":11}},{"id":"65dccc15-b08c-4d9c-9749-6f7d660233a2","block_type":"box","text":"financial statements and provides an important level of reassurance to shareholders.","page_number":216,"box":{"x":68,"y":324,"width":609,"height":11}},{"id":"f00c4058-f692-438b-9a3c-c710c0cfe5e7","block_type":"box","text":"We look to audit committees, or their equivalent, to have clearly articulated charters that set out their","page_number":216,"box":{"x":101,"y":347,"width":727,"height":11}},{"id":"cc40ac9e-5082-4692-bf78-7d90b8710c15","block_type":"box","text":"responsibilities. Additionally, having a rotation plan can periodically refresh the committee membership and introduce","page_number":216,"box":{"x":69,"y":362,"width":835,"height":11}},{"id":"985042e0-6218-4616-af97-0ba3891029a6","block_type":"box","text":"new perspectives. We recognize that audit committees will rely on management, internal audit, and the independent","page_number":216,"box":{"x":69,"y":377,"width":827,"height":12}},{"id":"17c75777-1eb0-4671-bfd6-003762203739","block_type":"box","text":"auditor to fulfill their responsibilities. However, we look to committee members to demonstrate they have relevant","page_number":216,"box":{"x":69,"y":392,"width":810,"height":12}},{"id":"454f1310-3af1-4905-9a9b-73131efab77b","block_type":"box","text":"expertise to monitor and oversee the audit process and related activities.","page_number":216,"box":{"x":69,"y":408,"width":523,"height":10}},{"id":"6e55dc52-f667-4e31-af38-5252e88b355e","block_type":"box","text":"We take particular note of unexplained changes in reporting methodology, cases involving significant financial","page_number":216,"box":{"x":101,"y":430,"width":780,"height":11}},{"id":"994bfe79-734a-45a9-aecd-e11ae60f0624","block_type":"box","text":"restatements, or ad hoc notifications of material financial weakness. In this respect, we look to audit committees to","page_number":216,"box":{"x":69,"y":445,"width":828,"height":11}},{"id":"4dabc659-4bdf-4d13-8e99-dcc8fbd17c65","block_type":"box","text":"provide timely disclosure on the remediation of key and critical audit matters identified either by the external auditor","page_number":216,"box":{"x":70,"y":460,"width":827,"height":12}},{"id":"1a6ed1bc-369f-4786-ad94-24a5c9e781a0","block_type":"box","text":"or internal audit function.","page_number":216,"box":{"x":69,"y":475,"width":178,"height":9}},{"id":"f66488c4-6cbc-4d13-a095-f5546decdeb0","block_type":"box","text":"The integrity of financial statements depends on the auditor being free of any impediments that could","page_number":216,"box":{"x":101,"y":498,"width":723,"height":11}},{"id":"06f8370e-6d71-4590-a2bb-134804d86b12","block_type":"box","text":"compromise its ability to serve as an effective check on management. To that end, it is important that auditors are,","page_number":216,"box":{"x":69,"y":513,"width":825,"height":12}},{"id":"54f3c4c6-a32f-403d-ac9d-5170b903d0e4","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":216,"box":{"x":69,"y":528,"width":824,"height":12}},{"id":"7b3456f8-75c8-496d-b8ab-14a84d3209ba","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":216,"box":{"x":70,"y":543,"width":839,"height":11}},{"id":"1ebe6b55-36cb-4517-8fc7-c413d4621cd8","block_type":"box","text":"assessing the independence of the auditor and the quality of the external audit process on an annual basis.","page_number":216,"box":{"x":69,"y":559,"width":770,"height":11}},{"id":"3da943ab-5623-436e-bd7c-9a74190203cb","block_type":"box","text":"Comprehensive disclosure provides investors with an understanding of the company’s long-term operational risk","page_number":216,"box":{"x":102,"y":581,"width":799,"height":12}},{"id":"5f6de6d5-1f15-4bad-a627-caf9cbb8166f","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":216,"box":{"x":69,"y":596,"width":836,"height":12}},{"id":"ab5e6a41-e9a0-4e7f-9872-c3713020015b","block_type":"box","text":"to periodically review the company’s risk assessment and risk management policies and the significant risks and","page_number":216,"box":{"x":68,"y":612,"width":806,"height":11}},{"id":"980016fc-99dd-4f91-bf91-ca59a34b6eba","block_type":"box","text":"exposures identified by management, the internal auditors or the independent auditors, and management’s steps to","page_number":216,"box":{"x":69,"y":627,"width":829,"height":11}},{"id":"5c1d1aa5-4152-4725-b6c0-db855ea39260","block_type":"box","text":"address them. In the absence of detailed disclosures, we may conclude that companies are not adequately managing","page_number":216,"box":{"x":69,"y":642,"width":840,"height":11}},{"id":"305168b1-4787-4b0d-b42b-d1133a3d6c80","block_type":"box","text":"risk.","page_number":216,"box":{"x":69,"y":657,"width":28,"height":9}},{"id":"297950fc-d7b9-47b8-836d-2bf6bd78e32c","block_type":"box","text":"CAPITAL STRUCTURE, MERGERS, ACQUISITIONS, ASSET SALES, AND OTHER SPECIAL SITUATIONS","page_number":216,"box":{"x":125,"y":687,"width":728,"height":11}},{"id":"3d9efa9e-68cc-4444-af2b-f1e0888f5710","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":216,"box":{"x":101,"y":710,"width":798,"height":11}},{"id":"b5d916b2-808e-4237-b806-1e6e2bfe3222","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":216,"box":{"x":70,"y":725,"width":824,"height":11}},{"id":"727a1031-4cf6-44c4-8539-58d28ab34c44","block_type":"box","text":"protection for shareholders against the dilution of their interests.","page_number":216,"box":{"x":70,"y":740,"width":460,"height":11}},{"id":"6920c1b8-8f46-4bf2-8aa2-9d80f448e1c6","block_type":"box","text":"In principle, we have concerns with the creation of a share class with equivalent economic exposure and","page_number":216,"box":{"x":102,"y":763,"width":743,"height":11}},{"id":"4ca874cf-a8b5-4b43-b446-97768da5fd74","block_type":"box","text":"differentiated voting rights. As a result, BIS generally supports bylaw amendments that introduce the adoption of","page_number":216,"box":{"x":69,"y":778,"width":805,"height":11}},{"id":"265e626a-3240-4f5a-ad17-d2dafda5821a","block_type":"box","text":"“one share, one vote” for registered shareholders.","page_number":216,"box":{"x":70,"y":793,"width":358,"height":11}},{"id":"5ff86da9-d308-4dfa-8022-0fca40ea46a4","block_type":"box","text":"7","page_number":216,"box":{"x":69,"y":823,"width":4,"height":4}},{"id":"268a1e9e-1971-49da-8b0c-4909eaaa47f4","block_type":"box","text":"Enterprise Risk Management is a process, effected by the entity’s board of directors, management, and other","page_number":216,"box":{"x":79,"y":822,"width":784,"height":12}},{"id":"a76f7d04-e929-409a-a504-c276253ebd65","block_type":"box","text":"personnel, applied in strategy setting and across the enterprise, designed to identify potential events that may affect","page_number":216,"box":{"x":70,"y":837,"width":834,"height":12}},{"id":"73032b03-8bbe-4070-aa6d-4e613a9ed079","block_type":"box","text":"the entity, and manage risk to be within the risk appetite, to provide reasonable assurance regarding the achievement","page_number":216,"box":{"x":68,"y":853,"width":841,"height":11}},{"id":"130ba93c-dc6a-4375-9c25-d059a250d3b2","block_type":"box","text":"of objectives. Please see: The Committee of Sponsoring Organizations of the Treadway Commission (COSO),","page_number":216,"box":{"x":69,"y":868,"width":771,"height":11}},{"id":"26d98e42-e75a-446a-adc9-2fa399e522f5","block_type":"box","text":"“Enterprise Risk Management,” 2023, accessed in December 2025.","page_number":216,"box":{"x":70,"y":883,"width":488,"height":11}},{"id":"67ba880e-50e7-459f-a6e5-9e9f948100b7","block_type":"box","text":"BlackRock Investment Stewardship","page_number":216,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"e7a7a93d-e744-4839-b024-f3727d6d3870","block_type":"box","text":"Global Principles | 7","page_number":216,"box":{"x":768,"y":942,"width":140,"height":13}},{"id":"93f72fcc-5880-437c-95d5-5eeea3e49fd5","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":216,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"29621960-8025-468d-a22f-d832b071f352","block_type":"box","text":"However, we recognize that in certain markets, at least for a period of time, companies may have a valid reason","page_number":217,"box":{"x":102,"y":45,"width":798,"height":11}},{"id":"81b7331a-69e9-4160-b11f-40e49368bad7","block_type":"box","text":"for listing dual classes of shares with differentiated voting rights. In our view, such companies should review these","page_number":217,"box":{"x":68,"y":60,"width":818,"height":11}},{"id":"f81ddb4e-8a08-4ce4-b875-6cac1e1615ba","block_type":"box","text":"share class structures on a regular basis or as company circumstances change. Additionally, they should seek","page_number":217,"box":{"x":69,"y":75,"width":788,"height":11}},{"id":"1969955a-34f5-4a51-a8b6-636888b2b26c","block_type":"box","text":"shareholder approval of their capital structure on a periodic basis via a management proposal at the company’s","page_number":217,"box":{"x":69,"y":90,"width":797,"height":11}},{"id":"57672501-612d-410d-870f-52fabff0c7bc","block_type":"box","text":"shareholder meeting. The proposal should give unaffiliated shareholders the opportunity to affirm the current","page_number":217,"box":{"x":69,"y":105,"width":780,"height":11}},{"id":"87767473-fb48-4ae9-8dfb-15e5fbb9a8ca","block_type":"box","text":"structure or establish mechanisms to end or phase out controlling structures at the appropriate time, while","page_number":217,"box":{"x":69,"y":120,"width":764,"height":12}},{"id":"31aacf9c-30f4-4882-93be-5389232c009b","block_type":"box","text":"minimizing costs to shareholders.","page_number":217,"box":{"x":69,"y":136,"width":238,"height":11}},{"id":"b68e5b66-252c-4418-84dd-fe782bbffec8","block_type":"box","text":"In assessing mergers, asset sales, or other special situations, BIS’ primary consideration is the long-term","page_number":217,"box":{"x":102,"y":158,"width":756,"height":11}},{"id":"748b22d2-48ed-4590-8158-37c9b4f8b8a4","block_type":"box","text":"financial interests of our clients as shareholders, and so we will review any proposed transaction with that objective","page_number":217,"box":{"x":68,"y":173,"width":826,"height":11}},{"id":"65183e67-3dd9-443e-8d8d-37440b2df9e4","block_type":"box","text":"in mind. Typically, we review factors such as whether the proposed transaction has the unanimous support of the","page_number":217,"box":{"x":70,"y":188,"width":806,"height":11}},{"id":"eef832cf-af3e-4b7a-9866-170d5078369b","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":217,"box":{"x":69,"y":204,"width":799,"height":11}},{"id":"e927c251-36a7-4a69-b8cb-09c09967df64","block_type":"box","text":"economic and strategic rationale. We may also seek reassurance from the board that the financial interests of","page_number":217,"box":{"x":69,"y":218,"width":788,"height":12}},{"id":"46c8667b-65e5-46d5-99bf-49eec3076b78","block_type":"box","text":"executives and/or board members in a given transaction have not adversely affected their ability to place","page_number":217,"box":{"x":69,"y":234,"width":750,"height":11}},{"id":"c98a7113-4f2d-440a-b58f-971f098b8683","block_type":"box","text":"shareholders’ interests before their own. Where the transaction involves related parties, the recommendation to","page_number":217,"box":{"x":69,"y":249,"width":801,"height":11}},{"id":"c7167af3-7f27-4249-bb3c-7b1b63cc1c75","block_type":"box","text":"support should come from the independent directors, a best practice in most markets, and ideally, the terms should","page_number":217,"box":{"x":69,"y":264,"width":830,"height":11}},{"id":"a4eb68a5-c2f7-4032-958a-7819e13222aa","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":217,"box":{"x":69,"y":279,"width":836,"height":11}},{"id":"a9e73f84-aeba-4efb-a495-d19c37477ade","block_type":"box","text":"a separate vote of the non-conflicted parties.","page_number":217,"box":{"x":69,"y":294,"width":320,"height":11}},{"id":"0b7d4437-af16-4b60-9b20-cddb7f258210","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":217,"box":{"x":101,"y":317,"width":806,"height":11}},{"id":"eed7b09d-e129-4e1b-8fc1-edb8bf9e9105","block_type":"box","text":"open market without unnecessary restriction. In our view, corporate mechanisms designed to limit shareholders’","page_number":217,"box":{"x":69,"y":332,"width":801,"height":11}},{"id":"d7bc3400-6729-4bd1-b76e-71077398e3ac","block_type":"box","text":"ability to sell their shares are contrary to basic property rights. Such mechanisms can serve to protect and entrench","page_number":217,"box":{"x":69,"y":347,"width":829,"height":11}},{"id":"95007e6a-5de3-4e1e-8975-c778eecd0976","block_type":"box","text":"interests other than those of the shareholders. In our view, shareholders are broadly capable of making decisions in","page_number":217,"box":{"x":70,"y":362,"width":826,"height":11}},{"id":"0b589ecc-3a7b-434a-b3e7-1b3e1ed82edd","block_type":"box","text":"their own best interests. We encourage any shareholder rights plans proposed by a board to be subject to","page_number":217,"box":{"x":68,"y":377,"width":755,"height":12}},{"id":"bc1e710f-7bb6-4bd6-9ed1-ba793a0ea7a9","block_type":"box","text":"shareholder approval upon introduction and periodically thereafter.","page_number":217,"box":{"x":69,"y":392,"width":472,"height":12}},{"id":"a6ffebd6-409d-4618-bfcb-3ec51d6bec10","block_type":"box","text":"EXECUTIVE COMPENSATION AND BENEFITS","page_number":217,"box":{"x":328,"y":423,"width":322,"height":9}},{"id":"b9eda679-cbcc-40f8-96a2-c02119db3267","block_type":"box","text":"Executive compensation is an important tool used by companies to support long-term financial value creation. A","page_number":217,"box":{"x":102,"y":445,"width":799,"height":12}},{"id":"847261b2-b69b-4de5-86df-ae3d16c578da","block_type":"box","text":"well-structured compensation policy rewards the successful delivery of strategic, operational, and/or financial goals;","page_number":217,"box":{"x":68,"y":460,"width":830,"height":12}},{"id":"f41ceb06-8ce4-4b8c-9056-43fe6a1ccb3f","block_type":"box","text":"encourages an appropriate risk appetite; and aligns the interests of shareholders and executives through equity","page_number":217,"box":{"x":69,"y":475,"width":797,"height":12}},{"id":"7538507f-b8ab-4167-baf4-a4992632ffa4","block_type":"box","text":"ownership.","page_number":217,"box":{"x":69,"y":491,"width":75,"height":11}},{"id":"c41c88ca-0252-4731-b6ee-a3b8cf7f655a","block_type":"box","text":"8","page_number":217,"box":{"x":146,"y":491,"width":4,"height":4}},{"id":"53e31779-bd84-451f-87c5-d5da0a0ededf","block_type":"box","text":"We look for a clear link between variable pay and operational and financial performance that support sustained","page_number":217,"box":{"x":101,"y":513,"width":793,"height":11}},{"id":"c4d840b6-8b39-46d2-805d-aab08a65ea17","block_type":"box","text":"financial value creation for our clients as shareholders. We appreciate when performance targets incorporate","page_number":217,"box":{"x":68,"y":528,"width":778,"height":12}},{"id":"3f506ab1-450f-4514-9782-870a1de033e9","block_type":"box","text":"ambitious objectives, and the corresponding metrics are aligned with the company’s strategy and business model.","page_number":217,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"f293269f-bb00-42ec-9eab-f2bd7734bceb","block_type":"box","text":"BIS does not have a position on whether companies choose to use sustainability-related criteria in compensation","page_number":217,"box":{"x":70,"y":559,"width":804,"height":11}},{"id":"d694e06f-17e0-4d5e-98d0-609de3547320","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":217,"box":{"x":69,"y":574,"width":814,"height":11}},{"id":"499dbd93-785a-4b24-a20e-fffc3235e37f","block_type":"box","text":"financial or operational targets. We appreciate when long-term incentive plans encompass timeframes that: 1) are","page_number":217,"box":{"x":68,"y":589,"width":813,"height":11}},{"id":"30aedbf5-3c36-4129-998e-39c7cf3b756a","block_type":"box","text":"distinct from annual executive compensation structures and metrics, and 2) encourage the delivery of strong financial","page_number":217,"box":{"x":69,"y":604,"width":839,"height":11}},{"id":"cd4ccfdc-d928-4e31-b2e6-aecf64cb8834","block_type":"box","text":"results over a period of years.","page_number":217,"box":{"x":69,"y":619,"width":211,"height":11}},{"id":"d9a2450d-8cad-4a7a-ae3c-175ded06859d","block_type":"box","text":"We consider it best practice when board members responsible for designing and approving executive","page_number":217,"box":{"x":101,"y":642,"width":718,"height":11}},{"id":"f5cedf92-9b99-472d-8b5c-0d10aec796a2","block_type":"box","text":"compensation carefully consider the company’s specific circumstances. Factors to consider may include the","page_number":217,"box":{"x":69,"y":657,"width":770,"height":11}},{"id":"6103e30b-59b8-4ea9-b94f-005ff20fb823","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":217,"box":{"x":69,"y":672,"width":838,"height":11}},{"id":"96bd2eef-c554-4d53-993a-a7251d3d0ad2","block_type":"box","text":"look to the compensation committees to guard against contractual arrangements that would entitle executives to","page_number":217,"box":{"x":70,"y":687,"width":804,"height":11}},{"id":"31201a0c-9323-47e4-a7a3-5cc957b4b75b","block_type":"box","text":"material compensation for early termination of their employment. Finally, we look for pension contributions and other","page_number":217,"box":{"x":69,"y":702,"width":831,"height":11}},{"id":"ca5ea098-00f2-48fa-9c66-c12147a36388","block_type":"box","text":"deferred compensation arrangements to be reasonable in light of market practices or the company’s business and","page_number":217,"box":{"x":69,"y":717,"width":817,"height":12}},{"id":"b2ac4155-1063-4596-afc6-e95964159407","block_type":"box","text":"executive compensation strategies.","page_number":217,"box":{"x":69,"y":733,"width":250,"height":11}},{"id":"9b515a54-5418-4406-8a21-0f528a6f9e4c","block_type":"box","text":"We are not supportive of one-off or special bonuses unrelated to company or individual performance. Where","page_number":217,"box":{"x":101,"y":755,"width":772,"height":11}},{"id":"e9b14670-11b0-425f-84a3-3cf7e24642c9","block_type":"box","text":"discretion has been used by the compensation committee, or its equivalent, we appreciate disclosure relating to how","page_number":217,"box":{"x":69,"y":771,"width":836,"height":11}},{"id":"f0d86230-6e4f-4cc4-9713-afe53f7f5923","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":217,"box":{"x":69,"y":785,"width":803,"height":12}},{"id":"5cdd7b51-8a6c-4d98-a900-b4673fbd43c4","block_type":"box","text":"addition, we acknowledge that the use of peer group evaluation by compensation committees can help ensure","page_number":217,"box":{"x":69,"y":801,"width":785,"height":11}},{"id":"ac13aec8-fbe8-4a38-ac11-718378375c9a","block_type":"box","text":"competitive pay. However, we encourage companies to clearly explain how compensation outcomes have rewarded","page_number":217,"box":{"x":69,"y":816,"width":815,"height":11}},{"id":"87777f56-a083-42db-9c28-a743eed9aa5a","block_type":"box","text":"performance rather than solely base increases in total compensation on peer benchmarking.","page_number":217,"box":{"x":70,"y":831,"width":659,"height":11}},{"id":"3d872a58-f40b-4264-b1f2-6ac3e13473e7","block_type":"box","text":"8","page_number":217,"box":{"x":69,"y":860,"width":4,"height":5}},{"id":"096cddb5-03cb-4bb9-88bd-e67eb1cd8ba1","block_type":"box","text":"The terms “compensation,” “remuneration,” and “pay” are used interchangeably to describe the same concept in","page_number":217,"box":{"x":78,"y":860,"width":811,"height":11}},{"id":"4b16772e-cd66-4d22-80a7-9d2a3abfcdfb","block_type":"box","text":"different markets.","page_number":217,"box":{"x":69,"y":875,"width":126,"height":9}},{"id":"2c556894-6f2e-461c-843e-288f1e7f8971","block_type":"box","text":"BlackRock Investment Stewardship","page_number":217,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"c1fb8da6-7185-4e16-a174-b4db438a9678","block_type":"box","text":"Global Principles | 8","page_number":217,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"13bf4ad7-acd8-4c9c-bd64-fa9b25eaf3d0","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":217,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"879e3ef5-1d1c-408d-ae6c-af048c7aca9e","block_type":"box","text":"We consider the inclusion of building clawback provisions into incentive plans as good practice. Such provisions","page_number":218,"box":{"x":101,"y":45,"width":797,"height":11}},{"id":"a442b0c9-c80a-484f-bc24-70d336341392","block_type":"box","text":"could require executives to forgo awards when compensation was based on faulty financial statements or deceptive","page_number":218,"box":{"x":69,"y":60,"width":825,"height":11}},{"id":"c860eb9b-d84d-428c-8561-6632253f375a","block_type":"box","text":"business practices, or when their behavior caused material financial harm to shareholders, material reputational risk","page_number":218,"box":{"x":69,"y":75,"width":833,"height":11}},{"id":"25e78352-0063-4f8a-ae31-8b78ed25b1d6","block_type":"box","text":"to the company, or resulted in a criminal investigation.","page_number":218,"box":{"x":68,"y":90,"width":386,"height":11}},{"id":"6865fd46-fabf-4fa5-9317-267283243d62","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":218,"box":{"x":102,"y":113,"width":803,"height":11}},{"id":"f7f1a83a-e2ee-4d5e-97d3-cac3954934c3","block_type":"box","text":"effort expended in fulfilling their professional responsibilities. Additionally, these compensation arrangements should","page_number":218,"box":{"x":69,"y":128,"width":834,"height":11}},{"id":"ce3b3dd0-6a56-4cc2-94d5-a52358ef6a32","block_type":"box","text":"not risk compromising directors’ independence or aligning their interests too closely with those of the management,","page_number":218,"box":{"x":69,"y":143,"width":825,"height":11}},{"id":"bf85db1f-deb0-4a92-ad64-875b0e62e6fc","block_type":"box","text":"whom they are charged with overseeing.","page_number":218,"box":{"x":68,"y":158,"width":285,"height":11}},{"id":"3e40640e-2ec1-4bc3-8103-032a81fe2adb","block_type":"box","text":"When assessing compensation proposals, BIS reviews companies’ disclosures to determine whether the board’s","page_number":218,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"f2f6d052-7c10-4e3d-984c-452266b63c83","block_type":"box","text":"approach to executive compensation is rigorous in light of the company’s stated long-term corporate strategy and","page_number":218,"box":{"x":69,"y":196,"width":807,"height":11}},{"id":"b8508964-b1d1-4b32-aaac-3b6102091194","block_type":"box","text":"specific circumstances, as well as local market and policy developments.","page_number":218,"box":{"x":69,"y":211,"width":521,"height":11}},{"id":"b83bf89e-7d54-41af-b8c6-21bfab73a070","block_type":"box","text":"When our analysis indicates that executive compensation is misaligned with company performance, BIS may not","page_number":218,"box":{"x":101,"y":234,"width":802,"height":11}},{"id":"c10e9a44-5bf9-48b0-9602-5ea448063a60","block_type":"box","text":"support management’s proposals to approve compensation, where they are on the agenda. We may also not support","page_number":218,"box":{"x":69,"y":249,"width":838,"height":11}},{"id":"f9499884-e5a5-4017-a474-7a84267a01ef","block_type":"box","text":"members of the compensation committee or equivalent board members for poor compensation practices or","page_number":218,"box":{"x":69,"y":264,"width":766,"height":11}},{"id":"079438ab-72c7-417e-a16d-7f9a7394bf71","block_type":"box","text":"structures.","page_number":218,"box":{"x":69,"y":280,"width":76,"height":8}},{"id":"435e74bd-ac99-4422-9659-23368c2ad3be","block_type":"box","text":"SHAREHOLDER PROTECTIONS AND OTHER CORPORATE GOVERNANCE MATTERS","page_number":218,"box":{"x":191,"y":309,"width":595,"height":9}},{"id":"90f11372-4ded-4d5f-8883-eb20b22e9834","block_type":"box","text":"Corporate form","page_number":218,"box":{"x":69,"y":339,"width":108,"height":11}},{"id":"1cf9a32d-6659-469c-8bc7-6aee8705d6dc","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":218,"box":{"x":102,"y":362,"width":781,"height":11}},{"id":"b6391e17-9027-490d-bd9e-6be027810c3d","block_type":"box","text":"the company’s purpose and business model.","page_number":218,"box":{"x":68,"y":377,"width":320,"height":11}},{"id":"18c2c7c0-6cf2-4957-bfeb-828f37520c6e","block_type":"box","text":"9","page_number":218,"box":{"x":390,"y":378,"width":4,"height":4}},{"id":"6d1cda4e-e024-4683-9be5-122223ca7636","block_type":"box","text":"We look to companies proposing to change their corporate form to a","page_number":218,"box":{"x":399,"y":377,"width":487,"height":12}},{"id":"91dbf852-8dd9-4360-b72e-7cbd5572d3e1","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":218,"box":{"x":70,"y":392,"width":791,"height":12}},{"id":"a4ea0226-df52-4d81-a087-f266a2b7cc98","block_type":"box","text":"applicable law. We appreciate when supporting documentation from companies or shareholders proposing to alter the","page_number":218,"box":{"x":69,"y":407,"width":839,"height":12}},{"id":"6c619c85-4150-402d-8701-ab38811c67e9","block_type":"box","text":"corporate form clearly explains how the interests of shareholders and different stakeholders would be impacted as","page_number":218,"box":{"x":69,"y":423,"width":818,"height":11}},{"id":"b86acec7-9514-40ce-b853-aea48adaf7c4","block_type":"box","text":"well as the accountability and voting mechanisms that would be available to shareholders. We generally support","page_number":218,"box":{"x":68,"y":438,"width":800,"height":11}},{"id":"ea0f3e8a-f5fb-4938-9e26-2fa565ad61de","block_type":"box","text":"management proposals if our analysis indicates that shareholders’ financial interests are adequately protected.","page_number":218,"box":{"x":69,"y":453,"width":796,"height":11}},{"id":"bd84407a-1f96-4d37-b559-aa6ff5e43bbd","block_type":"box","text":"Corporate form shareholder proposals are evaluated on a case-by-case basis.","page_number":218,"box":{"x":69,"y":468,"width":552,"height":11}},{"id":"7b9cb215-98de-4734-a77c-9b1e4fe094ae","block_type":"box","text":"SHAREHOLDER PROPOSALS","page_number":218,"box":{"x":385,"y":498,"width":207,"height":9}},{"id":"e1cbdadc-13b0-4902-9109-aea24afe3832","block_type":"box","text":"In most markets, shareholders can submit proposals to be voted on at a company’s shareholder meeting, as","page_number":218,"box":{"x":102,"y":521,"width":777,"height":11}},{"id":"cd59d27e-a110-4df4-86a9-3cdd69a2c143","block_type":"box","text":"long as certain requirements are met. Shareholder proposals span a wide range of topics, including governance","page_number":218,"box":{"x":70,"y":536,"width":796,"height":11}},{"id":"ed1f991d-df38-41be-b6c9-cfc4b419f14a","block_type":"box","text":"reforms, capital management, and changes in the management or disclosure of sustainability-related risks. These","page_number":218,"box":{"x":69,"y":551,"width":813,"height":11}},{"id":"e309ace8-aca9-47e5-8888-e73ceaea2d87","block_type":"box","text":"proposals have a varying degree of relevance for companies across sectors, locations, and business models.","page_number":218,"box":{"x":70,"y":566,"width":779,"height":11}},{"id":"728951f0-c527-4f77-b78c-2f6ef50384d0","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":218,"box":{"x":102,"y":589,"width":775,"height":11}},{"id":"45e9e0a2-6d1b-4172-98a0-4aa16f5255bd","block_type":"box","text":"proposal’s implications for long-term financial value creation for shareholders. Our analysis considers whether a","page_number":218,"box":{"x":70,"y":604,"width":796,"height":11}},{"id":"e02e00e4-601c-46a3-bb3c-e057532fb5b3","block_type":"box","text":"shareholder proposal addresses a material risk that may impact a company’s long-term financial performance. BIS","page_number":218,"box":{"x":69,"y":619,"width":818,"height":11}},{"id":"f145ce01-1ddd-4b10-b51b-79e8190815a2","block_type":"box","text":"may support shareholder proposals that request disclosures that help us, as long-term investors on behalf of our","page_number":218,"box":{"x":69,"y":634,"width":809,"height":12}},{"id":"8983ed58-0357-49dd-ba6c-8faa40a97bc7","block_type":"box","text":"clients, better understand the material risks and opportunities companies face and how they are managing them,","page_number":218,"box":{"x":69,"y":649,"width":807,"height":12}},{"id":"78f9f8e7-9b0b-4024-89fc-d44ef28558ed","block_type":"box","text":"especially where this information is additive given the company’s existing disclosures. We look for consistency","page_number":218,"box":{"x":69,"y":664,"width":787,"height":12}},{"id":"76ab47bf-4768-4eab-991f-6e2f94de6588","block_type":"box","text":"between the specific request formally made in the proposal, the supporting documentation, and the proponents’","page_number":218,"box":{"x":69,"y":680,"width":801,"height":11}},{"id":"4290593b-2c94-4618-a3bb-774ccea66d5c","block_type":"box","text":"other communications on the issues. We also assess the company’s practices and disclosures and the costs and","page_number":218,"box":{"x":69,"y":695,"width":813,"height":11}},{"id":"ab0d271d-856e-4e36-8052-351cbd7aed34","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":218,"box":{"x":69,"y":710,"width":791,"height":11}},{"id":"bf4d268e-8b88-49a5-8d06-fce35011951c","block_type":"box","text":"governance practices and disclosures against those of their peers.","page_number":218,"box":{"x":68,"y":725,"width":475,"height":11}},{"id":"662a6b65-22be-452c-ab29-2d836cbcb85e","block_type":"box","text":"BIS does not support shareholder proposals that we view as inconsistent with long-term financial value or that","page_number":218,"box":{"x":102,"y":748,"width":787,"height":11}},{"id":"2bd98fb7-bdf5-441d-9b2f-ccb8df860af0","block_type":"box","text":"seek to micromanage companies. We take into consideration the legal effect of the proposal, as shareholder","page_number":218,"box":{"x":69,"y":763,"width":778,"height":11}},{"id":"d004a344-f3c9-4420-a076-a63033daa8bb","block_type":"box","text":"proposals may be advisory or legally binding depending on the jurisdiction, while others may make requests that","page_number":218,"box":{"x":70,"y":778,"width":799,"height":11}},{"id":"29fd482a-e04e-4ca3-b832-319780601651","block_type":"box","text":"would be deemed illegal in a given jurisdiction.","page_number":218,"box":{"x":68,"y":793,"width":331,"height":11}},{"id":"7aaed677-e3ce-4cb8-9832-db224d7dfb04","block_type":"box","text":"In our experience, it is helpful when companies disclose the names of the proponent or organization that has","page_number":218,"box":{"x":102,"y":816,"width":777,"height":11}},{"id":"bec986b9-f1ba-4c99-aed0-58b3f02dbc5c","block_type":"box","text":"submitted or advised on the proposal. We recognize that some shareholder proposals bundle topics and/or specific","page_number":218,"box":{"x":69,"y":831,"width":825,"height":11}},{"id":"562ba379-1a43-434b-9c7a-12d46e1805c0","block_type":"box","text":"requests. Further, the proponent’s supporting statement may refer to topics that are not directly related to the","page_number":218,"box":{"x":69,"y":846,"width":788,"height":11}},{"id":"8fd109a7-744f-4de1-a2dc-a496ce882dee","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":218,"box":{"x":69,"y":861,"width":820,"height":11}},{"id":"9a664770-b11d-45e9-b20b-a1fafa34f5b3","block_type":"box","text":"the proponent. Therefore, when we vote in support of a proposal, we are not necessarily endorsing every element of","page_number":218,"box":{"x":68,"y":876,"width":831,"height":11}},{"id":"2d82c04b-fdec-45fd-bba0-30a4c47a3475","block_type":"box","text":"9","page_number":218,"box":{"x":69,"y":906,"width":4,"height":4}},{"id":"45273ced-4174-4b56-94df-9213fa9991e5","block_type":"box","text":"Corporate form refers to the legal structure by which a business is organized.","page_number":218,"box":{"x":79,"y":905,"width":550,"height":12}},{"id":"eb70325b-266e-4cc1-bf0d-3c2c47544db3","block_type":"box","text":"BlackRock Investment Stewardship","page_number":218,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"a7a8847b-fe63-4995-a05e-53e7d59af37f","block_type":"box","text":"Global Principles | 9","page_number":218,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"0db719cb-4d9b-40c3-9d5a-e205d033cdac","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":218,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"19056b82-2b09-4cb9-b959-304545c7ddf5","block_type":"box","text":"the proposal or the reasoning, objectives, or supporting statement of the proponent. We may support a proposal for","page_number":219,"box":{"x":68,"y":45,"width":829,"height":11}},{"id":"74265f6b-2eca-4ceb-a4df-9ce3c6d45e64","block_type":"box","text":"different reasons than those put forth by the proponent, when we believe that overall it may advance our clients’","page_number":219,"box":{"x":69,"y":60,"width":802,"height":11}},{"id":"c7162b2c-1d70-4d6e-8710-61e7a426e7ee","block_type":"box","text":"long-term financial interests.","page_number":219,"box":{"x":70,"y":75,"width":201,"height":11}},{"id":"7ad2ca2c-c7b5-4a4f-88b9-baa2ab28f19a","block_type":"box","text":"BlackRock is subject to certain rules, regulations, agency guidance, and contractual agreements that place","page_number":219,"box":{"x":102,"y":98,"width":763,"height":11}},{"id":"39c60696-6aa8-46cd-b44d-210b00dff230","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":219,"box":{"x":69,"y":113,"width":809,"height":11}},{"id":"f4df6b5b-4781-44cd-bc37-4cc9caf18433","block_type":"box","text":"clients. BlackRock does not nominate directors for board elections or submit shareholder proposals to companies.","page_number":219,"box":{"x":69,"y":128,"width":817,"height":11}},{"id":"6b0efc49-719c-4296-8722-6ddc8c9a8708","block_type":"box","text":"Non-compliance with these requirements could adversely affect BlackRock’s ability to serve its clients’ interests.","page_number":219,"box":{"x":70,"y":143,"width":803,"height":11}},{"id":"025d9f2f-d3e5-432c-8fca-a96031e6f00d","block_type":"box","text":"MATERIAL SUSTAINABILITY-RELATED RISKS AND OPPORTUNITIES","page_number":219,"box":{"x":247,"y":173,"width":484,"height":9}},{"id":"152883e1-30e7-4907-8a1f-b5b36c0279d2","block_type":"box","text":"Appropriate oversight of material risks and opportunities, including material sustainability-related risks and","page_number":219,"box":{"x":101,"y":196,"width":760,"height":11}},{"id":"72b27024-3ee1-460a-88b1-84f3055e0d99","block_type":"box","text":"opportunities, is an important component of having an effective governance framework that supports durable, long","page_number":219,"box":{"x":69,"y":211,"width":824,"height":11}},{"id":"bb6387dc-11b5-4e6e-a9a4-df3a373ba8e9","block_type":"box","text":"term financial value creation.","page_number":219,"box":{"x":68,"y":226,"width":206,"height":9}},{"id":"f2e1ceb9-70db-46d1-be1f-4d9657ffa2b7","block_type":"box","text":"10","page_number":219,"box":{"x":276,"y":226,"width":9,"height":5}},{"id":"91ac3bba-05cf-4608-bcb6-c1b436744ead","block_type":"box","text":"We look to companies to provide robust disclosure that allows investors to effectively evaluate companies’","page_number":219,"box":{"x":101,"y":249,"width":761,"height":11}},{"id":"f034357b-3fde-48f2-85d5-a191fc04556e","block_type":"box","text":"strategy and business practices related to material sustainability-related risks and opportunities. We find it helpful","page_number":219,"box":{"x":69,"y":264,"width":814,"height":11}},{"id":"bca52339-b483-40bd-ad8a-79044e80c89b","block_type":"box","text":"when companies’ disclosures demonstrate that they have a resilient business model that integrates material","page_number":219,"box":{"x":68,"y":279,"width":777,"height":11}},{"id":"23854a15-8e50-4006-bd83-043c6d35654f","block_type":"box","text":"sustainability-related risks and opportunities into their strategy, risk management, and metrics and targets, including","page_number":219,"box":{"x":69,"y":294,"width":833,"height":11}},{"id":"a42dd967-6996-45b9-b9dc-4e94b95aafcd","block_type":"box","text":"industry-specific metrics.","page_number":219,"box":{"x":70,"y":309,"width":175,"height":11}},{"id":"a9c55843-dbaf-4692-bde9-57b6515932b3","block_type":"box","text":"Standardized disclosure of sustainability-related data supports investors in making informed decisions. The","page_number":219,"box":{"x":102,"y":332,"width":765,"height":11}},{"id":"e060a9fc-568a-4f4c-b138-e1ac4713afe1","block_type":"box","text":"International Sustainability Standards Board (ISSB) standards, IFRS S1 and S2, represent one such approach to","page_number":219,"box":{"x":70,"y":347,"width":800,"height":11}},{"id":"39586856-256a-4bc6-9dc0-c3b3a1ad5295","block_type":"box","text":"standardization that we find useful in our analysis.","page_number":219,"box":{"x":69,"y":362,"width":358,"height":11}},{"id":"8861a4ce-9cb0-49ae-af52-d79c6e6b9846","block_type":"box","text":"11","page_number":219,"box":{"x":429,"y":363,"width":9,"height":4}},{"id":"9f1c2bc6-d98f-4098-b2f5-5aae74102c5c","block_type":"box","text":"However, we do not mandate any specific disclosure framework","page_number":219,"box":{"x":444,"y":362,"width":451,"height":11}},{"id":"cc44d6ab-9a5d-4d91-9809-c1cf940dbd92","block_type":"box","text":"companies should use, and recognize that companies may report using different standards, some of which may be","page_number":219,"box":{"x":69,"y":377,"width":821,"height":12}},{"id":"e91c025d-5f84-458c-bf4f-349378183cc7","block_type":"box","text":"required by regulation. In such cases, we ask that companies highlight the metrics that are industry- or company","page_number":219,"box":{"x":69,"y":393,"width":806,"height":11}},{"id":"eccfab6d-b4e9-436e-bf32-b27de68fd7ec","block_type":"box","text":"specific.","page_number":219,"box":{"x":69,"y":407,"width":57,"height":11}},{"id":"44382e70-0479-47f5-ab2b-536799eae3cd","block_type":"box","text":"We also recognize that companies may be phasing in reporting over several years. We do not prescribe timelines","page_number":219,"box":{"x":101,"y":430,"width":805,"height":11}},{"id":"7db7511d-6cf9-4ea9-9ab3-9015d5defb5f","block_type":"box","text":"regarding when companies should make sustainability-related disclosures but appreciate it when companies produce","page_number":219,"box":{"x":69,"y":446,"width":833,"height":11}},{"id":"9323597b-56bc-4c2b-89be-631a357311ef","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":219,"box":{"x":68,"y":460,"width":830,"height":12}},{"id":"7990954e-e603-44f0-89b0-001c2b2d7897","block_type":"box","text":"to assess the data and make informed voting decisions.","page_number":219,"box":{"x":68,"y":475,"width":401,"height":12}},{"id":"639dd431-ad94-4d07-bea3-736fc944e779","block_type":"box","text":"Industry initiatives on managing specific operational risks may also provide useful guidance to companies on","page_number":219,"box":{"x":102,"y":498,"width":775,"height":11}},{"id":"3f7221e7-dfd3-4638-937c-b6180f44ecbc","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":219,"box":{"x":69,"y":513,"width":804,"height":12}},{"id":"eff89f02-1e27-4ef4-bec5-d829cb4a8834","block_type":"box","text":"when companies disclose any relevant global sustainability-related standards adopted, the industry initiatives in","page_number":219,"box":{"x":68,"y":529,"width":799,"height":11}},{"id":"3cc216d6-f6d6-4678-9105-ce0b35853bf4","block_type":"box","text":"which they participate, any peer group benchmarking undertaken, and any assurance processes to help investors","page_number":219,"box":{"x":68,"y":544,"width":810,"height":11}},{"id":"3069c705-f825-4871-9dee-9ec0a75cc8a5","block_type":"box","text":"understand their approach to sustainable and responsible business practices.","page_number":219,"box":{"x":69,"y":559,"width":556,"height":11}},{"id":"be76c727-6119-45a5-8040-29f75f69fa67","block_type":"box","text":"10","page_number":219,"box":{"x":69,"y":603,"width":9,"height":5}},{"id":"4d8d439b-ee6a-4d65-bd31-eb7fd30a80ff","block_type":"box","text":"By material sustainability-related risks and opportunities, we mean the drivers of risk and financial value creation in","page_number":219,"box":{"x":84,"y":603,"width":822,"height":11}},{"id":"b19da142-abad-4bcd-a381-3e5e484512f8","block_type":"box","text":"a company’s business model that have an environmental or social dependency or impact. Examples of environmental","page_number":219,"box":{"x":69,"y":618,"width":835,"height":11}},{"id":"fba8fcdb-867e-47ba-8da8-73675276181e","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":219,"box":{"x":70,"y":633,"width":827,"height":12}},{"id":"d1e4f990-e2ec-457d-85bc-a1ad641cc6d3","block_type":"box","text":"issues include, but are not limited to, human capital management, impacts on the communities in which a company","page_number":219,"box":{"x":70,"y":649,"width":826,"height":11}},{"id":"458789d3-a72d-402c-ae5e-5d48005b8ccd","block_type":"box","text":"operates, customer loyalty, and relationships with regulators.","page_number":219,"box":{"x":69,"y":664,"width":433,"height":11}},{"id":"56e2808c-7237-463f-b570-782ade549df7","block_type":"box","text":"11","page_number":219,"box":{"x":69,"y":682,"width":9,"height":4}},{"id":"b3de4183-e835-4d3b-8306-67e53d0fda6d","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Reporting Standards","page_number":219,"box":{"x":83,"y":681,"width":744,"height":11}},{"id":"81af3c9a-fa87-41cf-b841-b575f6889fcd","block_type":"box","text":"(IFRS) Foundation. The standards build on the Task Force on Climate-related Financial Disclosures (TCFD) framework","page_number":219,"box":{"x":69,"y":696,"width":828,"height":11}},{"id":"fa096919-56b5-48c2-9fbd-7e4ebc269a8c","block_type":"box","text":"and the standards and metrics developed by the Sustainability Accounting Standards Board (SASB), which have both","page_number":219,"box":{"x":69,"y":711,"width":830,"height":12}},{"id":"2de82aa5-76f8-4a43-a58a-fc7ce8ccec7c","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":219,"box":{"x":69,"y":726,"width":809,"height":12}},{"id":"d7e5a000-2026-4b9f-8288-8112a153ca3a","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":219,"box":{"x":70,"y":742,"width":778,"height":11}},{"id":"7f955209-e5bd-4153-8da7-d9d4b17ad539","block_type":"box","text":"Disclosures.” Websites accessed in December 2025.","page_number":219,"box":{"x":70,"y":757,"width":380,"height":9}},{"id":"b00758d2-10b2-4654-8366-9979ca617067","block_type":"box","text":"BlackRock Investment Stewardship","page_number":219,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"7dfeafe3-ea61-490d-a8c0-826c44eb6579","block_type":"box","text":"Global Principles | 10","page_number":219,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"cce6d488-8834-4a2d-9de2-23907a0fa82f","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":219,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"94e0217b-4bcb-4800-b947-7bbff08559cc","block_type":"box","text":"CLIMATE AND NATURE-RELATED RISK","page_number":220,"box":{"x":351,"y":45,"width":277,"height":9}},{"id":"eafb4751-64ea-45c9-8e5b-a9356ccd213d","block_type":"box","text":"Many companies are assessing how to navigate the low-carbon transition while delivering long-term financial","page_number":220,"box":{"x":102,"y":67,"width":769,"height":12}},{"id":"3789fa7a-4982-4b95-82e3-e91fa7e354e2","block_type":"box","text":"value to investors. For companies facing material climate-related risks, we find it helpful when they publicly disclose,","page_number":220,"box":{"x":68,"y":82,"width":829,"height":12}},{"id":"693024a3-218d-4875-bf6b-0a28d597a24a","block_type":"box","text":"consistent with their business model and sector, how they intend to deliver long-term financial performance through","page_number":220,"box":{"x":69,"y":98,"width":824,"height":11}},{"id":"ff0e207e-f237-4158-85cd-d4147ecb9166","block_type":"box","text":"the low-carbon transition, including where available, their transition plan.","page_number":220,"box":{"x":68,"y":113,"width":514,"height":11}},{"id":"32b49955-bf26-4667-b012-23f7ba85b91b","block_type":"box","text":"12, 13","page_number":220,"box":{"x":584,"y":113,"width":26,"height":5}},{"id":"44bc9c0b-8cb0-4bb6-8808-bc2c0553d66d","block_type":"box","text":"From company disclosures and","page_number":220,"box":{"x":617,"y":113,"width":218,"height":11}},{"id":"776271ee-18f2-4eed-a7b4-31df8b05c7eb","block_type":"box","text":"engagement, we seek to understand the strategies companies have in place to manage material risks to, and","page_number":220,"box":{"x":69,"y":128,"width":782,"height":11}},{"id":"01d41b42-9ae1-4a07-9581-29c295d55c94","block_type":"box","text":"opportunities for, their long-term business model associated with a range of climate-related scenarios.","page_number":220,"box":{"x":69,"y":143,"width":729,"height":11}},{"id":"44ed682c-fdbb-45d2-a5eb-5b2317b3fb3b","block_type":"box","text":"Recognizing the value of these disclosures, certain markets such as the European Union mandate large","page_number":220,"box":{"x":102,"y":166,"width":740,"height":11}},{"id":"83751e28-5a5f-434c-8175-8e4ce531eae2","block_type":"box","text":"companies to disclose such climate-related financial information, while in other jurisdictions these disclosures are","page_number":220,"box":{"x":69,"y":181,"width":814,"height":11}},{"id":"770980e1-a253-4c46-87af-098ff2d5efa7","block_type":"box","text":"viewed as best practice in the market.","page_number":220,"box":{"x":68,"y":196,"width":271,"height":11}},{"id":"207e57b0-4a53-4f87-8886-ea575ac5249e","block_type":"box","text":"The ISSB standards provide one such framework that can assist investors in assessing company-specific","page_number":220,"box":{"x":101,"y":218,"width":749,"height":12}},{"id":"b23a7de7-7ff5-4b78-9da0-c4601195240f","block_type":"box","text":"climate-related risks and opportunities, and informing investment decisions. Such disclosures also provide investors","page_number":220,"box":{"x":69,"y":234,"width":831,"height":11}},{"id":"788a98a3-3f71-4534-86c2-2161ea188fd6","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":220,"box":{"x":68,"y":249,"width":809,"height":11}},{"id":"dbd2b307-0838-44db-8fbd-efd6f6b22f2d","block_type":"box","text":"managing their own carbon emissions or emissions intensities to the extent financially practicable.","page_number":220,"box":{"x":69,"y":264,"width":702,"height":11}},{"id":"a9db5757-54bd-4026-9f55-821d7182f581","block_type":"box","text":"The ISSB standards, for example, contemplate disclosures on how companies are setting short-, medium- and","page_number":220,"box":{"x":101,"y":286,"width":786,"height":12}},{"id":"6fb4031e-0042-467f-8181-bcc5814dddec","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":220,"box":{"x":70,"y":302,"width":834,"height":11}},{"id":"24bbe50f-db90-4d4d-98aa-53a5d43aa568","block_type":"box","text":"emissions (GHG) reductions and to demonstrate how their targets are consistent with the long-term financial","page_number":220,"box":{"x":69,"y":317,"width":773,"height":11}},{"id":"b8749318-9aa3-4299-8d35-d7f0292d83f6","block_type":"box","text":"interests of their investors.","page_number":220,"box":{"x":70,"y":332,"width":190,"height":9}},{"id":"fc47c32f-0c8b-4fc8-b51b-16cec0486a40","block_type":"box","text":"While we recognize that regulators in some markets are moving to mandate certain disclosures, at this stage,","page_number":220,"box":{"x":101,"y":355,"width":784,"height":11}},{"id":"d4489af6-f912-4ba0-83cf-2661a85c5264","block_type":"box","text":"we view scope 3 emissions differently from scopes 1 and 2, given methodological complexity, regulatory uncertainty,","page_number":220,"box":{"x":68,"y":370,"width":832,"height":11}},{"id":"a86b4c51-2696-4793-8306-97fafb62a3c7","block_type":"box","text":"concerns about double-counting, and lack of direct control by companies. We welcome disclosures and commitments","page_number":220,"box":{"x":69,"y":385,"width":834,"height":11}},{"id":"ac5c3ff8-d063-4e45-85c0-ddd845ca8daa","block_type":"box","text":"that companies choose to make regarding material scope 3 emissions and recognize that these are provided on a","page_number":220,"box":{"x":68,"y":400,"width":815,"height":11}},{"id":"a015b5e1-6e0f-4527-b09d-11301dbd2040","block_type":"box","text":"good-faith basis as methodology develops.","page_number":220,"box":{"x":68,"y":415,"width":303,"height":11}},{"id":"7b8d403a-fbcd-4ef9-a0ea-86a86b0b7502","block_type":"box","text":"In addition to climate-related risks and opportunities, for companies whose strategies, operations or supply","page_number":220,"box":{"x":102,"y":438,"width":766,"height":11}},{"id":"594d6fa8-30f6-499c-8fe8-7db3495248a6","block_type":"box","text":"chains are materially reliant on natural capital, nature-related risks and opportunities may affect their ability to","page_number":220,"box":{"x":69,"y":453,"width":788,"height":11}},{"id":"846eac04-4c59-461b-aeb8-4a57e130c5ad","block_type":"box","text":"generate long-term financial returns.","page_number":220,"box":{"x":68,"y":468,"width":258,"height":11}},{"id":"1c5813a5-9c5b-485a-90a3-452c6d6beebf","block_type":"box","text":"14","page_number":220,"box":{"x":328,"y":468,"width":9,"height":5}},{"id":"1c8bb421-b1ff-482c-8a3b-d8b41fddad5a","block_type":"box","text":"For these companies, we rely on disclosures to understand how their","page_number":220,"box":{"x":344,"y":468,"width":490,"height":11}},{"id":"7dbcdeff-75d5-4971-8953-1714019790b2","block_type":"box","text":"strategies consider nature-related impacts and dependencies and to assess how the board oversees these risks.","page_number":220,"box":{"x":69,"y":483,"width":807,"height":11}},{"id":"e43c6a9b-cf8b-488f-9bb5-9bcb3058c004","block_type":"box","text":"15","page_number":220,"box":{"x":878,"y":484,"width":9,"height":4}},{"id":"64cc84f5-861b-44e0-a3d6-6b8538a8ef23","block_type":"box","text":"COMPANIES’ IMPACT ON THEIR WORKFORCE, SUPPLY CHAINS, AND COMMUNITIES","page_number":220,"box":{"x":179,"y":513,"width":620,"height":11}},{"id":"64229258-7160-462e-a0dd-d4da76ca8904","block_type":"box","text":"Companies determine their key stakeholders based on what is material to their business and long-term financial","page_number":220,"box":{"x":102,"y":536,"width":799,"height":11}},{"id":"270a8aaa-4386-4937-96d1-9c9dcddd216e","block_type":"box","text":"performance. For many companies, key stakeholders include employees, business supply chains, clients and","page_number":220,"box":{"x":70,"y":551,"width":778,"height":11}},{"id":"7c45b439-6cca-4865-8821-107d799d10b7","block_type":"box","text":"consumers, regulators, and the communities in which they operate.","page_number":220,"box":{"x":69,"y":566,"width":479,"height":11}},{"id":"cfda1f07-c2f2-4126-b527-fa135e3fe686","block_type":"box","text":"In our experience, companies that invest in the relationships that are critical to their strategic objectives are","page_number":220,"box":{"x":102,"y":589,"width":770,"height":11}},{"id":"f84a1073-21ee-4fe6-b59f-ba68e6daee57","block_type":"box","text":"more likely to deliver durable, long-term financial performance. By contrast, we have found that poor relationships","page_number":220,"box":{"x":69,"y":604,"width":810,"height":11}},{"id":"26681c55-617a-4b43-a944-71ff9b1c7887","block_type":"box","text":"12","page_number":220,"box":{"x":69,"y":634,"width":9,"height":4}},{"id":"2b33d562-594f-4dd0-b29c-ede787722c38","block_type":"box","text":"We have observed that more companies are developing such plans, and public policymakers in certain markets are","page_number":220,"box":{"x":83,"y":633,"width":823,"height":12}},{"id":"3284eac7-e307-48b1-9ece-7eb32e7497e8","block_type":"box","text":"signaling their intentions to require them or already have requirements in place, such as Australia, Brazil, and the","page_number":220,"box":{"x":69,"y":649,"width":808,"height":11}},{"id":"d8c56fe3-7728-44c8-8e2d-91e95c5f5646","block_type":"box","text":"European Union (please see the International Transition Plan Network for information). We view transition plans as a","page_number":220,"box":{"x":70,"y":663,"width":827,"height":11}},{"id":"644de358-c8f9-4908-a8ac-834d6c2bbf56","block_type":"box","text":"method for a company to both internally assess and externally communicate its long-term strategy, ambition,","page_number":220,"box":{"x":69,"y":679,"width":774,"height":11}},{"id":"81f87f35-12e6-452c-a24b-c14a92aa9c40","block_type":"box","text":"objectives, and actions to create financial value through the global transition towards a low-carbon economy. Across","page_number":220,"box":{"x":69,"y":694,"width":825,"height":11}},{"id":"58ed6f89-8413-4ec5-b36f-a71e3e4fee4b","block_type":"box","text":"the landscape there remains divergence on the objectives of such plans and the details they should contain. While","page_number":220,"box":{"x":68,"y":709,"width":819,"height":11}},{"id":"52a5fbee-c4fd-4285-96ae-8ff22e418e57","block_type":"box","text":"transition plans can be helpful disclosure, BIS does not make the preparation and production of transition plans a","page_number":220,"box":{"x":68,"y":724,"width":813,"height":11}},{"id":"20f865dc-f508-43eb-a4c3-67ff2ed7206e","block_type":"box","text":"voting issue. BIS may engage companies that have chosen to publish a transition plan to understand their planned","page_number":220,"box":{"x":68,"y":739,"width":819,"height":11}},{"id":"aa715933-ea62-4c3c-a87a-a5bb5e69dab8","block_type":"box","text":"actions and resource implications. Website accessed in December 2025.","page_number":220,"box":{"x":69,"y":754,"width":522,"height":11}},{"id":"fd39d94a-adf4-4543-aeef-243fe62fd98a","block_type":"box","text":"13","page_number":220,"box":{"x":69,"y":772,"width":9,"height":5}},{"id":"4cd99a0a-fce1-4bb1-bf64-a0c1098cda52","block_type":"box","text":"For more information, please see our commentary “Climate-related risks and a low-carbon transition,” December","page_number":220,"box":{"x":84,"y":772,"width":804,"height":11}},{"id":"e17ca4c1-ba10-477c-932f-c2675520a6f4","block_type":"box","text":"2025.","page_number":220,"box":{"x":69,"y":787,"width":42,"height":9}},{"id":"32c7d932-e91f-4bf2-9f80-9d142519df44","block_type":"box","text":"14","page_number":220,"box":{"x":69,"y":805,"width":9,"height":4}},{"id":"6050b426-938a-4de9-a20f-8374fce22366","block_type":"box","text":"For more information, please see our commentary “Our approach to engagement on natural capital,” December","page_number":220,"box":{"x":84,"y":805,"width":796,"height":11}},{"id":"3e71cce7-770b-49ae-8532-c5b50ffdb89c","block_type":"box","text":"2025.","page_number":220,"box":{"x":69,"y":820,"width":42,"height":9}},{"id":"e19f6648-2208-42d2-be97-550ea6fac43e","block_type":"box","text":"15","page_number":220,"box":{"x":69,"y":838,"width":9,"height":4}},{"id":"c6e12c60-d361-4d7d-aaa9-ccbc3f98af01","block_type":"box","text":"Given the growing awareness of the materiality of these issues for certain businesses, enhanced reporting on a","page_number":220,"box":{"x":84,"y":837,"width":797,"height":12}},{"id":"531818d3-7a08-4f94-a85a-50e20de9e80b","block_type":"box","text":"company’s natural capital dependencies and impacts would aid investors’ understanding. The recommendations of","page_number":220,"box":{"x":69,"y":852,"width":820,"height":12}},{"id":"9528056f-cf23-4031-a659-75c654d67985","block_type":"box","text":"the Taskforce on Nature-related Financial Disclosures (TNFD) may prove useful to some companies. We recognize that","page_number":220,"box":{"x":68,"y":868,"width":842,"height":11}},{"id":"ef0b9d38-b547-45b1-afb0-3478f75f11d4","block_type":"box","text":"some companies may report using different standards, which may be required by regulation, or one of a number of","page_number":220,"box":{"x":69,"y":883,"width":820,"height":11}},{"id":"6fb33636-5690-4524-8f2d-339f3ed972f0","block_type":"box","text":"other private sector standards. TNFD-aligned reporting is not a voting issue. Website accessed in December 2025.","page_number":220,"box":{"x":69,"y":898,"width":817,"height":11}},{"id":"580f7384-4aef-4b5d-b9c8-0cad35820782","block_type":"box","text":"BlackRock Investment Stewardship","page_number":220,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"66ad1a0c-9187-4aec-b735-48bf6366e733","block_type":"box","text":"Global Principles | 11","page_number":220,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"3156a1a3-7685-4a4e-a411-e97135ed0848","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":220,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"142f8691-b7dc-4f45-983c-72f88bae39ee","block_type":"box","text":"may create adverse impacts that could expose companies to legal, regulatory, operational, and reputational risks.","page_number":221,"box":{"x":69,"y":45,"width":811,"height":11}},{"id":"76d438d9-88ba-42b6-8221-a1f55dce45b1","block_type":"box","text":"This is particularly relevant to a company’s workforce, which is central to long-term financial value creation.","page_number":221,"box":{"x":68,"y":60,"width":764,"height":11}},{"id":"3e4e2ce2-67c2-4e8c-a8e6-f55fa6e2e57a","block_type":"box","text":"16","page_number":221,"box":{"x":834,"y":60,"width":9,"height":5}},{"id":"6aa76f86-6de3-4af4-a1dd-534afdc852e9","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":221,"box":{"x":101,"y":82,"width":783,"height":12}},{"id":"e26da3a6-3347-4793-8bab-52b17a2ea4ae","block_type":"box","text":"identified their key stakeholders and considered their interests in business decision-making. In addition to","page_number":221,"box":{"x":70,"y":98,"width":755,"height":11}},{"id":"e6f936c1-589e-4ef4-b942-b091917b48f8","block_type":"box","text":"understanding broader stakeholder relationships, BIS finds it helpful when companies discuss how they consider the","page_number":221,"box":{"x":69,"y":113,"width":831,"height":11}},{"id":"85cc7cf7-3f1a-43ad-add4-2712d1f37e99","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":221,"box":{"x":69,"y":128,"width":809,"height":11}},{"id":"080d33a8-7865-4a07-9968-54459b024429","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":221,"box":{"x":69,"y":143,"width":821,"height":11}},{"id":"bebfb031-0690-4728-9f87-481d4054db76","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":221,"box":{"x":69,"y":158,"width":775,"height":11}},{"id":"31b43357-ba5a-4dda-9979-1a9dab7d3a36","block_type":"box","text":"company’s policies or practices, which are the responsibility of management and the board.","page_number":221,"box":{"x":69,"y":173,"width":653,"height":11}},{"id":"7ba570a1-2887-4210-93d1-f6d1d842619e","block_type":"box","text":"In addition, we find it helpful when companies disclose their approach to addressing material adverse impacts","page_number":221,"box":{"x":102,"y":196,"width":784,"height":11}},{"id":"69f1bb92-b6af-43c9-96f4-4caa459c89a8","block_type":"box","text":"that could arise from their business practices and affect critical relationships with their stakeholders. We encourage","page_number":221,"box":{"x":68,"y":211,"width":829,"height":11}},{"id":"f6644acb-67a8-45fa-b180-c869aca808cd","block_type":"box","text":"companies to implement, to the extent appropriate, monitoring processes (often referred to as due diligence) to","page_number":221,"box":{"x":69,"y":226,"width":797,"height":11}},{"id":"2a6af348-5ed6-4802-a625-2616dc735da6","block_type":"box","text":"identify and mitigate potential adverse impacts and grievance mechanisms to remediate any actual adverse material","page_number":221,"box":{"x":70,"y":241,"width":828,"height":11}},{"id":"edb14b54-b1af-4a58-939f-b4f5e25b4883","block_type":"box","text":"impacts.","page_number":221,"box":{"x":70,"y":257,"width":58,"height":10}},{"id":"3ae78d05-fca8-4b5a-a204-17b3883e13a0","block_type":"box","text":"We look to boards to oversee management’s approach to addressing material risks related to key stakeholders","page_number":221,"box":{"x":101,"y":279,"width":794,"height":11}},{"id":"f548f1c3-c422-421c-aaf6-f00bf8d9202a","block_type":"box","text":"and may convey concerns about board oversight in our voting on director elections or supporting a business relevant","page_number":221,"box":{"x":69,"y":294,"width":831,"height":11}},{"id":"19e1faba-dcc4-4d6a-9cef-f3b29651a0ac","block_type":"box","text":"shareholder proposal when, in our assessment, the board is not acting in shareholders’ long-term financial interests.","page_number":221,"box":{"x":69,"y":309,"width":834,"height":11}},{"id":"04fabebb-374b-48e2-a8ea-97944171b507","block_type":"box","text":"BLACKROCK’S OVERSIGHT OF ITS INVESTMENT STEWARDSHIP ACTIVITIES","page_number":221,"box":{"x":213,"y":340,"width":553,"height":8}},{"id":"b05fcf57-94af-4fed-a22f-30c956e2fd7d","block_type":"box","text":"BIS’ governance structure supports oversight and accountability of stewardship-related activities on behalf of","page_number":221,"box":{"x":102,"y":362,"width":778,"height":11}},{"id":"f8a12ce4-58d5-43da-9662-3b85235180fa","block_type":"box","text":"clients at the global and regional level.","page_number":221,"box":{"x":69,"y":377,"width":274,"height":12}},{"id":"f2b1080a-8065-4969-b5bb-e120cfb532af","block_type":"box","text":"At the top of this governance structure, the risk-focused BIS Global Oversight Committee (the Committee)","page_number":221,"box":{"x":101,"y":400,"width":751,"height":11}},{"id":"22ab8675-9630-4928-b416-df6d273173f5","block_type":"box","text":"supports BIS’ regulatory responsibilities in relation to proxy voting, including adherence to policies and procedures as","page_number":221,"box":{"x":69,"y":415,"width":840,"height":11}},{"id":"31ce3f5b-0c13-4552-8f11-8599525fcf42","block_type":"box","text":"well as market-level stewardship requirements. The Committee reviews and approves amendments to the Global","page_number":221,"box":{"x":68,"y":430,"width":802,"height":11}},{"id":"6d891dab-3da5-4602-b6b2-bc61f0f25886","block_type":"box","text":"Principles and regional voting guidelines. The Committee also reviews periodic reports regarding the votes cast by","page_number":221,"box":{"x":69,"y":445,"width":813,"height":12}},{"id":"ed6a5317-14aa-4d57-a660-6ab6f26c686c","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":221,"box":{"x":70,"y":460,"width":835,"height":12}},{"id":"9f080eac-e8a9-469c-91c1-78658b4328f1","block_type":"box","text":"considerations. The Committee is chaired by the Global Heads of the Investment Stewardship function and its","page_number":221,"box":{"x":69,"y":475,"width":783,"height":12}},{"id":"d0f88554-914e-4e75-a35f-ac3fffc317a3","block_type":"box","text":"members include senior BlackRock executives with legal, risk, and other experience relevant to team oversight who","page_number":221,"box":{"x":69,"y":491,"width":820,"height":11}},{"id":"25e37658-1c6f-4ce0-aecf-ba6681765499","block_type":"box","text":"are independent from the investment stewardship function.","page_number":221,"box":{"x":69,"y":506,"width":421,"height":11}},{"id":"82dc81d9-4cdd-45ec-995e-0fae683aff1b","block_type":"box","text":"The Global Heads have primary oversight of BIS’ activities globally, including voting in accordance with the Global","page_number":221,"box":{"x":101,"y":528,"width":804,"height":12}},{"id":"a5105b15-b1e4-447c-a962-2fc6c5c17d8c","block_type":"box","text":"Principles and regional voting guidelines. At the regional level, three regional Heads for the Americas, APAC, and","page_number":221,"box":{"x":69,"y":543,"width":798,"height":12}},{"id":"4114d36c-9a2d-4f54-8841-4094b6cf2e0f","block_type":"box","text":"EMEA oversee BIS’ activities for their specific markets.","page_number":221,"box":{"x":70,"y":559,"width":389,"height":11}},{"id":"997f587b-7eb0-43f0-b16a-fd7e648de7d3","block_type":"box","text":"VOTE EXECUTION","page_number":221,"box":{"x":424,"y":589,"width":129,"height":9}},{"id":"3e4fe053-7e61-4fc1-b965-b2bb4bece46d","block_type":"box","text":"BIS votes proxies on behalf of index equity funds and accounts when authorized by our clients. We have","page_number":221,"box":{"x":102,"y":612,"width":739,"height":11}},{"id":"45f4bab6-8a62-427a-83c4-b6098fca8536","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":221,"box":{"x":70,"y":627,"width":822,"height":11}},{"id":"95e3271c-caaa-41eb-8638-cc6aa4c5ee80","block_type":"box","text":"from voting when logistical issues arise (see below). The BIS Benchmark Policies – and the vote decisions made","page_number":221,"box":{"x":68,"y":642,"width":801,"height":11}},{"id":"27a6b90a-91d7-4b47-a60d-c79009bca044","block_type":"box","text":"consistent with those policies – reflect our reasonable and independent judgment and are made without regard to the","page_number":221,"box":{"x":69,"y":657,"width":838,"height":11}},{"id":"61689ebc-02ad-4953-a667-7b1cefc99813","block_type":"box","text":"relationship between the issuer of the proxy (or any shareholder proponent or dissident shareholder) and the Fund,","page_number":221,"box":{"x":69,"y":672,"width":817,"height":11}},{"id":"92d19984-b1fb-4fdc-9c4c-b2221e1d5619","block_type":"box","text":"the Fund’s affiliates (if any), BlackRock or BlackRock’s affiliates, or BlackRock employees (see “Conflicts","page_number":221,"box":{"x":68,"y":687,"width":751,"height":11}},{"id":"f43a1428-332e-4c6d-9f96-a32b997a006a","block_type":"box","text":"management policies and procedures,” below).","page_number":221,"box":{"x":69,"y":703,"width":334,"height":11}},{"id":"d7c63b27-a0f1-4cee-9a9d-4fceab4a8735","block_type":"box","text":"In certain markets, proxy voting involves logistical issues which can affect BIS’ ability to vote, as well as the cost","page_number":221,"box":{"x":102,"y":725,"width":806,"height":11}},{"id":"c5bc85b3-ff4d-4d04-95c4-5a5ee1b78fe0","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":221,"box":{"x":69,"y":740,"width":801,"height":11}},{"id":"0a358487-1b81-41ad-b258-b4008bd8bc2e","block_type":"box","text":"shareholder meetings; 2) restrictions on a foreigner’s ability to exercise votes; 3) requirements to vote proxies in","page_number":221,"box":{"x":69,"y":755,"width":805,"height":11}},{"id":"cb3f1024-9b1e-4ec2-a62b-ba266d70e16d","block_type":"box","text":"person; 4) “share-blocking” (requirements that investors who exercise their voting rights surrender the right to","page_number":221,"box":{"x":70,"y":771,"width":783,"height":11}},{"id":"785c794a-bfd9-4a06-b027-33031bf006cd","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":221,"box":{"x":69,"y":785,"width":811,"height":12}},{"id":"9a8ac19d-8e6d-4275-aa55-18f6a8f7790a","block_type":"box","text":"has occurred); 5) potential difficulties in translating the proxy; 6) regulatory constraints; and 7) requirements to","page_number":221,"box":{"x":69,"y":801,"width":795,"height":11}},{"id":"0134b65a-0259-466c-8b52-8a763dbb9317","block_type":"box","text":"provide local agents with powers of attorney to facilitate voting instructions. We are not supportive of impediments to","page_number":221,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"83a3df9e-e26e-4cdb-bf4b-1f40cb8a71b4","block_type":"box","text":"the exercise of voting rights such as share-blocking or overly burdensome administrative requirements.","page_number":221,"box":{"x":68,"y":831,"width":732,"height":11}},{"id":"c58a0fc1-49fd-43de-91c5-f9327e656c98","block_type":"box","text":"16","page_number":221,"box":{"x":69,"y":860,"width":9,"height":5}},{"id":"ee408082-3d9b-43f6-9dee-dee52b0e2e62","block_type":"box","text":"For more information, please see our commentary “Our approach to engagement on human capital management,”","page_number":221,"box":{"x":84,"y":860,"width":814,"height":11}},{"id":"a27ef847-2829-4b50-9aa0-8a03d82bac63","block_type":"box","text":"December 2025.","page_number":221,"box":{"x":70,"y":875,"width":118,"height":9}},{"id":"e163a096-13db-4025-b13c-05dd858355bc","block_type":"box","text":"BlackRock Investment Stewardship","page_number":221,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"8818bd33-b1f0-4b15-ab1a-2c50fbd86ff8","block_type":"box","text":"Global Principles | 12","page_number":221,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"0d260238-72a7-42b6-a188-96f929ad9c4c","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":221,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"bf8ce594-f081-4e1d-b6bd-18bba9c69af0","block_type":"box","text":"BIS votes proxies in these situations on a “best-efforts” basis. In addition, BIS may determine that it is generally","page_number":222,"box":{"x":102,"y":45,"width":807,"height":11}},{"id":"4770aa84-826a-4c51-b6e6-faed1ac77799","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":222,"box":{"x":70,"y":60,"width":830,"height":11}},{"id":"bd1487b9-fecf-4d81-988c-7989e2bcb9fe","block_type":"box","text":"not limited to opportunity costs associated with share-blocking constraints) associated with exercising a vote are","page_number":222,"box":{"x":69,"y":75,"width":805,"height":11}},{"id":"37062483-dc04-42cf-aac6-015663b4a23a","block_type":"box","text":"expected to outweigh the benefit the client would derive by voting on the proposal.","page_number":222,"box":{"x":69,"y":90,"width":585,"height":11}},{"id":"a288192d-a5e6-4311-87a5-dbbda00a2848","block_type":"box","text":"CONFLICTS MANAGEMENT POLICIES AND PROCEDURES","page_number":222,"box":{"x":281,"y":120,"width":416,"height":9}},{"id":"f54115ff-f1c3-43c7-8714-7335315d6af8","block_type":"box","text":"BIS is a dedicated function whose responsibilities are separate from BlackRock’s sales, business partnership or","page_number":222,"box":{"x":102,"y":143,"width":804,"height":11}},{"id":"e5696bbb-f153-4575-ba18-1fd010b4cca9","block_type":"box","text":"enterprise-level vendor management activities.","page_number":222,"box":{"x":69,"y":158,"width":329,"height":11}},{"id":"bd816e99-3d79-4422-9e2a-d41f483542af","block_type":"box","text":"BlackRock maintains policies and procedures that are designed to prevent undue influence on BIS’ proxy voting","page_number":222,"box":{"x":102,"y":181,"width":794,"height":11}},{"id":"ace2f2bf-a1ed-47a4-8b08-4a00f325e133","block_type":"box","text":"activity. Such influence might stem from any relationship between the investee company (or any shareholder","page_number":222,"box":{"x":69,"y":196,"width":771,"height":11}},{"id":"f5d21634-8ee4-4892-ab9e-ac2a3d4d24fb","block_type":"box","text":"proponent or dissident shareholder) and BlackRock, BlackRock’s affiliates, a Fund or a Fund’s affiliates, or","page_number":222,"box":{"x":70,"y":211,"width":763,"height":11}},{"id":"03767754-afbf-442d-884a-a1f9ddd7dc71","block_type":"box","text":"BlackRock employees.","page_number":222,"box":{"x":70,"y":226,"width":157,"height":11}},{"id":"aae611df-bcc8-4219-aa45-a054bfc4e51a","block_type":"box","text":"For information on how BIS manages conflicts of interest, please see our disclosure.","page_number":222,"box":{"x":102,"y":249,"width":602,"height":11}},{"id":"c9575557-becc-47b6-9ac1-5dbcbad020c9","block_type":"box","text":"SECURITIES LENDING","page_number":222,"box":{"x":409,"y":279,"width":159,"height":9}},{"id":"0e85e2aa-9163-45a1-a1f1-37ed6e9f2330","block_type":"box","text":"When authorized, BlackRock acts as a securities lending agent on behalf of its clients. Lending securities","page_number":222,"box":{"x":101,"y":302,"width":751,"height":11}},{"id":"5b1163aa-9ea4-4ffb-b282-2c85c2b43b6a","block_type":"box","text":"enables BlackRock to increase the returns in clients’ portfolios, and BlackRock’s lending agreements allow it to","page_number":222,"box":{"x":69,"y":317,"width":797,"height":11}},{"id":"84dbd1e6-2029-45e6-a179-448f06c8cb69","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":222,"box":{"x":69,"y":332,"width":817,"height":11}},{"id":"004d9458-a2ad-478a-a8a9-26fb4588275d","block_type":"box","text":"out on loan. Entitlements associated with the lent securities (dividends, coupons, etc.), while on loan are paid back","page_number":222,"box":{"x":69,"y":347,"width":823,"height":11}},{"id":"8d24108e-c421-4cc8-ae1e-b228dc309dd6","block_type":"box","text":"to the lender of the security as stipulated in industry standard legal agreements.","page_number":222,"box":{"x":68,"y":362,"width":575,"height":11}},{"id":"c290948c-637f-4914-8a3a-c3b00cf2735b","block_type":"box","text":"With regard to the relationship between securities lending and proxy voting, BlackRock cannot vote shares on","page_number":222,"box":{"x":101,"y":385,"width":779,"height":11}},{"id":"198ccf47-2037-4615-a3b2-cef9cd3341a9","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":222,"box":{"x":70,"y":400,"width":827,"height":11}},{"id":"72a038c6-5911-4177-a5b9-19d276e82aae","block_type":"box","text":"in helping them achieve their investment goals. While this has occurred in a limited number of cases, the decision to","page_number":222,"box":{"x":70,"y":415,"width":832,"height":11}},{"id":"69d9c573-d3e7-4974-a5fa-e17666051756","block_type":"box","text":"recall securities on loan as part of BlackRock’s securities lending program in order to vote is based on an evaluation","page_number":222,"box":{"x":69,"y":430,"width":832,"height":11}},{"id":"4fd455b3-4480-4cb0-849d-f689eec0f383","block_type":"box","text":"of various factors that include, but are not limited to, assessing potential securities lending revenue alongside the","page_number":222,"box":{"x":69,"y":445,"width":814,"height":12}},{"id":"6815ca90-d09d-4e78-864c-3a9c6e360352","block_type":"box","text":"potential long-term financial value to clients of voting those securities (based on the information available at the time","page_number":222,"box":{"x":70,"y":460,"width":834,"height":12}},{"id":"a5f32044-f8cc-446e-9e58-454c6dcf9105","block_type":"box","text":"of recall consideration).","page_number":222,"box":{"x":69,"y":475,"width":166,"height":12}},{"id":"3256e9b7-0822-4389-8fdd-49e399426920","block_type":"box","text":"17","page_number":222,"box":{"x":237,"y":476,"width":9,"height":4}},{"id":"6e7c5647-00f1-4ab1-8568-09b55af416ed","block_type":"box","text":"BIS works with colleagues in the Securities Lending and Risk and Quantitative Analysis","page_number":222,"box":{"x":252,"y":476,"width":617,"height":11}},{"id":"45211d7f-b4d0-493a-a214-b94ec406b4a3","block_type":"box","text":"teams to evaluate the costs and benefits to clients of recalling shares on loan.","page_number":222,"box":{"x":68,"y":491,"width":563,"height":11}},{"id":"0f72c368-9aa7-4032-8945-4110b05ff27d","block_type":"box","text":"In almost all instances, BlackRock anticipates that the potential long-term financial value to clients of voting","page_number":222,"box":{"x":102,"y":513,"width":770,"height":12}},{"id":"f06a72f7-793c-4a14-a866-6dc5fc332089","block_type":"box","text":"shares would be less than the potential revenue the loan may provide clients. However, in certain instances,","page_number":222,"box":{"x":69,"y":529,"width":774,"height":11}},{"id":"9168ac59-10c0-429b-b5b7-c483695f67da","block_type":"box","text":"BlackRock may determine, in our independent business judgment as a fiduciary, that the value of voting outweighs","page_number":222,"box":{"x":70,"y":543,"width":816,"height":12}},{"id":"6f65735c-a973-4cf5-b642-84985e6fae61","block_type":"box","text":"the securities lending revenue loss to clients and would therefore recall shares to be voted in those instances. It is","page_number":222,"box":{"x":68,"y":559,"width":822,"height":11}},{"id":"74a76b3d-3f6d-4b01-91a8-45f4ebbbbeeb","block_type":"box","text":"important to note that the majority of lendable assets in the market at any given time are not out on loan.","page_number":222,"box":{"x":70,"y":574,"width":752,"height":11}},{"id":"1dc59a53-7629-4b8d-8411-5c1fe7e8b4e7","block_type":"box","text":"Periodically, BlackRock reviews our process for determining whether to recall securities on loan in order to vote","page_number":222,"box":{"x":102,"y":596,"width":790,"height":12}},{"id":"f325e063-829b-434e-b0d0-7c980c3e7db3","block_type":"box","text":"and may modify it as necessary.","page_number":222,"box":{"x":69,"y":612,"width":228,"height":11}},{"id":"8ba2b2a8-fcab-4194-947f-cc605966772b","block_type":"box","text":"VOTING CHOICE","page_number":222,"box":{"x":430,"y":642,"width":117,"height":9}},{"id":"1ab24e16-ba8b-4fc5-9983-be4f59b6fef1","block_type":"box","text":"BlackRock offers Voting Choice, a program that provides eligible clients with more opportunities to participate in","page_number":222,"box":{"x":102,"y":664,"width":800,"height":12}},{"id":"5e912dca-faff-4bda-9445-f84ffcf61688","block_type":"box","text":"the proxy voting process, where legally and operationally viable.","page_number":222,"box":{"x":68,"y":680,"width":452,"height":11}},{"id":"8349385a-f4e8-4b9b-bdca-a816bfa76075","block_type":"box","text":"18","page_number":222,"box":{"x":522,"y":680,"width":9,"height":4}},{"id":"42868917-7021-4e09-808e-f92664b965aa","block_type":"box","text":"Voting Choice is currently available for eligible clients invested in certain institutional pooled funds in the U.S.,","page_number":222,"box":{"x":101,"y":702,"width":786,"height":12}},{"id":"fffb4352-3c70-4a8c-9961-ca1f986fa46c","block_type":"box","text":"UK, Ireland, Canada, and Switzerland that utilize index equity investment strategies, as well as eligible clients in","page_number":222,"box":{"x":70,"y":718,"width":797,"height":11}},{"id":"93cb3020-4e9a-489d-987d-b0fa8df4feff","block_type":"box","text":"17","page_number":222,"box":{"x":69,"y":747,"width":8,"height":4}},{"id":"71035f33-5caa-4039-9f31-a8fc60c59b12","block_type":"box","text":"Recalling securities on loan can be impacted by the timing of record dates. In the U.S., for example, the record","page_number":222,"box":{"x":84,"y":747,"width":789,"height":11}},{"id":"02139f8a-2d60-45dc-b390-08c4e8346ff7","block_type":"box","text":"date of a shareholder meeting typically falls before the proxy statements are released. Accordingly, it is not","page_number":222,"box":{"x":69,"y":762,"width":763,"height":11}},{"id":"00b876f1-8d4e-41c7-9320-15f3b9a20cfa","block_type":"box","text":"practicable to evaluate a proxy statement, determine that a vote has a material impact on a fund and recall any","page_number":222,"box":{"x":70,"y":777,"width":794,"height":11}},{"id":"368be227-eec3-40a5-8f7f-4dbc0e3688a6","block_type":"box","text":"shares on loan in advance of the record date for the annual meeting. As a result, managers must weigh independent","page_number":222,"box":{"x":69,"y":792,"width":833,"height":11}},{"id":"5aac3fc4-9698-4956-b12f-a7d5fdedd42e","block_type":"box","text":"business judgement as a fiduciary, the benefit to a fund’s shareholders of recalling loaned shares in advance of an","page_number":222,"box":{"x":69,"y":807,"width":821,"height":11}},{"id":"2e2c72c7-1234-4ff7-b159-e856673be673","block_type":"box","text":"estimated record date without knowing whether there will be a vote on matters which have a material impact on the","page_number":222,"box":{"x":69,"y":822,"width":823,"height":12}},{"id":"0e33ab41-7211-41fe-b413-c92716dee3a8","block_type":"box","text":"fund (thereby forgoing potential securities lending revenue for the fund’s shareholders) or leaving shares on loan to","page_number":222,"box":{"x":68,"y":837,"width":822,"height":12}},{"id":"b2acf382-bbcb-45de-a436-7aae370262e9","block_type":"box","text":"potentially earn revenue for the fund (thereby forgoing the opportunity to vote).","page_number":222,"box":{"x":70,"y":852,"width":558,"height":12}},{"id":"cc36bebf-47dc-42d6-9db5-7ba1702d3edb","block_type":"box","text":"18","page_number":222,"box":{"x":69,"y":870,"width":9,"height":5}},{"id":"99d357ff-2c1d-4973-9faa-201639973ec7","block_type":"box","text":"BlackRock will determine eligibility criteria under this program based upon, among other things, local market","page_number":222,"box":{"x":84,"y":870,"width":771,"height":11}},{"id":"790d6e34-f481-41a8-b5df-1e31026e67e5","block_type":"box","text":"regulation and practice, cost considerations, operational risk and/or complexity, and financial considerations,","page_number":222,"box":{"x":69,"y":885,"width":779,"height":11}},{"id":"22105d0a-3150-4cc1-969d-19dc0f092b51","block_type":"box","text":"including the decision to lend securities.","page_number":222,"box":{"x":70,"y":901,"width":285,"height":11}},{"id":"2aadce64-fd2e-4577-9f84-acd62e588033","block_type":"box","text":"BlackRock Investment Stewardship","page_number":222,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"e2ab078a-e1be-4c57-9685-86aeeea47eb8","block_type":"box","text":"Global Principles | 13","page_number":222,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"0ae48ab1-9fc5-40ee-89fb-61688d8c510a","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":222,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"14c2cf66-3bd5-41d4-8fe0-bd58908611f4","block_type":"box","text":"certain institutional pooled funds in the U.S., UK, Canada, and Switzerland that use systematic active equity","page_number":223,"box":{"x":69,"y":45,"width":772,"height":11}},{"id":"0ba04201-4ecc-4c1c-a155-736ac3146a3c","block_type":"box","text":"(SAE) strategies. In addition, institutional clients in separately managed accounts (SMAs) continue to be eligible for","page_number":223,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"53882323-2a04-4f6b-9394-a9fa827b6372","block_type":"box","text":"BlackRock Voting Choice regardless of their investment strategies.","page_number":223,"box":{"x":70,"y":75,"width":471,"height":11}},{"id":"cff5ca33-ec9f-4a72-88e9-ab191dc434d5","block_type":"box","text":"19","page_number":223,"box":{"x":543,"y":75,"width":9,"height":5}},{"id":"1bba4ef7-5cdf-4382-b06a-b085b37661f7","block_type":"box","text":"Voting Choice is also available for eligible U.S.","page_number":223,"box":{"x":558,"y":75,"width":328,"height":11}},{"id":"58ac7380-3fc9-408c-a330-da78c6b917e5","block_type":"box","text":"retail shareholder accounts invested in BlackRock’s largest U.S. exchange-traded fund.","page_number":223,"box":{"x":69,"y":90,"width":619,"height":11}},{"id":"09a03c49-845a-493f-98d6-5889f53a0b14","block_type":"box","text":"20","page_number":223,"box":{"x":690,"y":90,"width":9,"height":5}},{"id":"b7f8171c-67ae-4bac-9521-96377b105000","block_type":"box","text":"As a result, the shares attributed to BlackRock portfolios in company share registers may be voted differently","page_number":223,"box":{"x":101,"y":113,"width":782,"height":11}},{"id":"8e56def9-d7a8-4e93-90cb-ff3a6a8693b9","block_type":"box","text":"depending on whether our clients have authorized BIS to vote on their behalf, have authorized BIS to vote in","page_number":223,"box":{"x":69,"y":128,"width":767,"height":11}},{"id":"501a0d18-0571-4a8d-9193-413b8ff0eea5","block_type":"box","text":"accordance with a third-party policy, or have elected to vote shares in accordance with their own policy. Our clients","page_number":223,"box":{"x":69,"y":143,"width":814,"height":11}},{"id":"d3804190-ea0c-4fe6-a90a-09bf9a9bf287","block_type":"box","text":"have greater control over proxy voting because of Voting Choice.","page_number":223,"box":{"x":69,"y":158,"width":454,"height":11}},{"id":"d5688cef-a091-45f0-9888-a9145281f668","block_type":"box","text":"21","page_number":223,"box":{"x":525,"y":158,"width":9,"height":5}},{"id":"ede7de36-9a73-42c0-863f-82cbd45514bd","block_type":"box","text":"REPORTING AND VOTE TRANSPARENCY","page_number":223,"box":{"x":343,"y":188,"width":293,"height":9}},{"id":"31feca85-ecf6-44b2-b453-8d7b216904b8","block_type":"box","text":"We are committed to transparency of the stewardship work we do on behalf of clients. We inform clients about","page_number":223,"box":{"x":101,"y":211,"width":789,"height":11}},{"id":"ec863f36-d59d-445d-9cb3-a35b9f27b78c","block_type":"box","text":"our engagement and voting policies and activities through direct communication and through disclosure on our","page_number":223,"box":{"x":69,"y":226,"width":787,"height":11}},{"id":"545b2380-277e-4f06-8ee5-d24815d3966c","block_type":"box","text":"website. We make public our regional voting guidelines for the benefit of clients and the companies in which we","page_number":223,"box":{"x":68,"y":241,"width":795,"height":11}},{"id":"403bd601-e159-4e42-ba06-59a7448a5a8c","block_type":"box","text":"invest on their behalf. We also publish commentaries to share our approach to engagement on our five engagement","page_number":223,"box":{"x":70,"y":256,"width":825,"height":12}},{"id":"fac5e1e1-f929-486c-90b2-8c747d7f901c","block_type":"box","text":"priorities, as well as quarterly reports detailing our proxy voting and engagement activities.","page_number":223,"box":{"x":70,"y":272,"width":644,"height":11}},{"id":"dc286bd6-3645-4b9b-9989-b59743a9d6f6","block_type":"box","text":"19","page_number":223,"box":{"x":69,"y":324,"width":9,"height":4}},{"id":"0e38eed5-4eb3-4a0f-850a-59bfd7cb97fe","block_type":"box","text":"With Voting Choice, SMA clients have the ability to select the policy that best aligns with their views and","page_number":223,"box":{"x":83,"y":323,"width":739,"height":12}},{"id":"8437be01-e425-487d-bdc7-a42558008fa6","block_type":"box","text":"preferences from a set of voting policies from third-party proxy advisers. BlackRock can then use its proxy voting","page_number":223,"box":{"x":70,"y":338,"width":800,"height":12}},{"id":"ece53fc2-bb4e-4682-a9a2-0a47828655c1","block_type":"box","text":"infrastructure to cast votes for the SMA based on the client’s selected voting policy.","page_number":223,"box":{"x":70,"y":354,"width":596,"height":11}},{"id":"e3652b78-a722-49d9-8c66-af7058f8c529","block_type":"box","text":"20","page_number":223,"box":{"x":69,"y":372,"width":9,"height":4}},{"id":"fd9d8919-0123-4e03-a0fb-d42e403f3e7b","block_type":"box","text":"Read more about BlackRock Voting Choice on our website.","page_number":223,"box":{"x":84,"y":371,"width":415,"height":11}},{"id":"c93c3e1d-9d0b-4bb0-bf9a-a317afb61769","block_type":"box","text":"21","page_number":223,"box":{"x":69,"y":389,"width":9,"height":5}},{"id":"720b4f2e-404e-4c54-a743-80e8769e3afe","block_type":"box","text":"BlackRock does not disclose client information, including a client’s selection of proxy policy, without client consent.","page_number":223,"box":{"x":84,"y":389,"width":820,"height":11}},{"id":"f8f371c3-9db2-4c12-83e7-0d7c1d91c202","block_type":"box","text":"BlackRock Investment Stewardship","page_number":223,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"4feba75c-4448-4edf-99b2-bd1813b6e9f2","block_type":"box","text":"Global Principles | 14","page_number":223,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"143760d3-2da5-4359-9c83-182f96b8b2ef","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":223,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f18e0563-7972-44e6-8694-8da0fd293f4b","block_type":"box","text":"Want to know more?","page_number":224,"box":{"x":68,"y":731,"width":152,"height":9}},{"id":"95d435ed-7ece-4d42-bba7-106d39bc3d6a","block_type":"box","text":"blackrock.com/stewardship | contactstewardship@blackrock.com","page_number":224,"box":{"x":69,"y":761,"width":464,"height":13}},{"id":"19a35a30-918f-47c8-9415-ae15d5b06f7e","block_type":"box","text":"This document is provided for information and educational purposes only. Investing involves risk, including the loss of","page_number":224,"box":{"x":68,"y":792,"width":839,"height":11}},{"id":"91a4988e-e9ed-412a-a4fd-c238efbb80e3","block_type":"box","text":"principal.","page_number":224,"box":{"x":70,"y":807,"width":62,"height":11}},{"id":"5bdb750f-c748-45a4-8442-8c9bc3b77acb","block_type":"box","text":"Prepared by BlackRock, Inc.","page_number":224,"box":{"x":69,"y":852,"width":196,"height":11}},{"id":"938beb9c-2f1e-43dd-bb08-f12e3fb66357","block_type":"box","text":"©2025 BlackRock, Inc. All rights reserved.","page_number":224,"box":{"x":69,"y":883,"width":303,"height":11}},{"id":"395d92cf-69df-42bd-87b6-440af4a92019","block_type":"box","text":"BLACKROCK","page_number":224,"box":{"x":379,"y":883,"width":92,"height":8}},{"id":"79d5f0c2-569e-410e-8af8-efb6a9697853","block_type":"box","text":"is a trademark of BlackRock, Inc., or its subsidiaries in the","page_number":224,"box":{"x":478,"y":882,"width":417,"height":11}},{"id":"46e0745e-d760-4dc4-b058-97839f16ac7c","block_type":"box","text":"United States and elsewhere. All other trademarks are those of their respective owners.","page_number":224,"box":{"x":70,"y":898,"width":624,"height":11}},{"id":"4a09d74a-6a93-4e71-ad10-b5c47cba5046","block_type":"box","text":"BlackRock Investment Stewardship","page_number":224,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"5e4c3f72-f5a5-4903-a51f-93be354c6484","block_type":"box","text":"Global Principles | 15","page_number":224,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"f39cbc3f-b661-48de-bdb6-bcb4b3b73fe2","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":224,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"99495626-51f6-4223-8dbd-5ee580f1103f","block_type":"box","text":"BlackRock Investment Stewardship","page_number":225,"box":{"x":359,"y":45,"width":260,"height":11}},{"id":"e8c84536-4f8c-42b4-88e2-fad5251c5a3e","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines","page_number":225,"box":{"x":297,"y":67,"width":384,"height":11}},{"id":"8ba1d4da-660d-400f-b4a7-d03533d6fef7","block_type":"box","text":"Effective as of January 2026","page_number":225,"box":{"x":385,"y":90,"width":208,"height":11}},{"id":"60ade965-7190-4d46-9535-74f9a02f3f1c","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":225,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ae04769e-0672-4730-afd1-36a10fdf8108","block_type":"box","text":"Contents","page_number":226,"box":{"x":456,"y":45,"width":66,"height":9}},{"id":"95613e0f-c567-4602-bf10-117d1f74825b","block_type":"box","text":"Introduction to BlackRock Investment Stewardship 3","page_number":226,"box":{"x":69,"y":80,"width":840,"height":11}},{"id":"a00fd3b9-df8d-4e60-8518-f9e6f12109d3","block_type":"box","text":"Stewardship for clients with investment objectives relating to the low-carbon transition 3","page_number":226,"box":{"x":68,"y":96,"width":841,"height":11}},{"id":"0cf1ba9f-629d-4d07-b1a5-98bf40290721","block_type":"box","text":"The Climate and Decarbonization Stewardship Guidelines 3","page_number":226,"box":{"x":68,"y":113,"width":841,"height":11}},{"id":"ecd8f341-ba35-4e9f-9c4c-a06fb6cf779c","block_type":"box","text":"Understanding the investment implications of the transition to a low-carbon economy 4","page_number":226,"box":{"x":69,"y":129,"width":840,"height":11}},{"id":"a56f58b5-9288-4e11-a8a3-0d017a009102","block_type":"box","text":"The Guidelines’ design principles","page_number":226,"box":{"x":68,"y":146,"width":240,"height":11}},{"id":"3be2b99b-39fb-4aa9-a6bf-3aee5398db60","block_type":"box","text":"4","page_number":226,"box":{"x":900,"y":146,"width":9,"height":8}},{"id":"17202c6c-92b0-4b75-a5cf-12d7856cd0dd","block_type":"box","text":"Voting approach under the Guidelines","page_number":226,"box":{"x":68,"y":162,"width":273,"height":11}},{"id":"fad6cc4c-38f4-4208-8e77-ecf7f6997377","block_type":"box","text":"5","page_number":226,"box":{"x":901,"y":162,"width":8,"height":9}},{"id":"2d7da3e3-e83a-491a-b127-f337b5270527","block_type":"box","text":"Related matters","page_number":226,"box":{"x":69,"y":178,"width":117,"height":9}},{"id":"4b6e84e5-b6bf-4a7b-9347-cfaadcb8e430","block_type":"box","text":"8","page_number":226,"box":{"x":900,"y":178,"width":9,"height":9}},{"id":"743e6368-e874-4f68-b2b3-426ad981d157","block_type":"box","text":"Appendix 1","page_number":226,"box":{"x":68,"y":195,"width":82,"height":11}},{"id":"67272328-040d-4973-898f-8472cbee0090","block_type":"box","text":"10","page_number":226,"box":{"x":891,"y":195,"width":18,"height":9}},{"id":"08c535e5-eeb8-4278-b010-eb82df090601","block_type":"box","text":"Appendix 2","page_number":226,"box":{"x":68,"y":211,"width":82,"height":11}},{"id":"dbaccde3-dbb3-4b8b-80a2-78140d70282e","block_type":"box","text":"11","page_number":226,"box":{"x":891,"y":211,"width":18,"height":9}},{"id":"a5727a20-2c57-45df-baa9-88e78afe9ac6","block_type":"box","text":"BlackRock Investment Stewardship","page_number":226,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"41965763-ad42-486c-b314-efa751c7fb42","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 2","page_number":226,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"88019187-74a9-4f92-b908-a6225c3174a2","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":226,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"04f1aa52-86fa-44c5-af2e-31b6d1c94adc","block_type":"box","text":"INTRODUCTION TO BLACKROCK INVESTMENT STEWARDSHIP","page_number":227,"box":{"x":264,"y":45,"width":450,"height":9}},{"id":"aee9fe1e-c1e8-479c-87a1-b861d51f0313","block_type":"box","text":"At BlackRock, investment stewardship serves as a link between our clients and the companies they invest in and","page_number":227,"box":{"x":101,"y":68,"width":807,"height":10}},{"id":"486d77a4-4d43-43ae-ac9b-d2df528814c0","block_type":"box","text":"is one of the ways we fulfill our fiduciary responsibilities as an asset manager on their behalf. BlackRock offers a","page_number":227,"box":{"x":70,"y":82,"width":806,"height":12}},{"id":"eb090473-aba1-4f3b-9ed4-56100257321d","block_type":"box","text":"range of proxy voting policies to reflect clients’ individual investment choices and goals.","page_number":227,"box":{"x":69,"y":98,"width":624,"height":11}},{"id":"dd9a07af-f013-43d3-9ed2-137b1510620e","block_type":"box","text":"BlackRock Investment Stewardship (BIS) is responsible for stewardship activities in relation to clients’ assets","page_number":227,"box":{"x":102,"y":120,"width":781,"height":11}},{"id":"5cf7c068-2c6b-4e50-9a26-1f0e75383837","block_type":"box","text":"invested in index equity strategies. BIS takes a long-term approach in our stewardship efforts, reflecting the","page_number":227,"box":{"x":70,"y":135,"width":769,"height":12}},{"id":"dd9ab712-2a82-4695-af8c-c969256673b7","block_type":"box","text":"investment horizons of the majority of our clients. BIS does this through:","page_number":227,"box":{"x":70,"y":150,"width":514,"height":12}},{"id":"ed84ecd3-06bb-4a54-8f1e-ccfe8e4848d3","block_type":"box","text":"1.","page_number":227,"box":{"x":70,"y":171,"width":11,"height":9}},{"id":"7a6689e1-8584-4073-9d15-50566b6ac464","block_type":"box","text":"Engaging with the boards and management of companies","page_number":227,"box":{"x":102,"y":171,"width":418,"height":11}},{"id":"2099fd88-a0a7-495b-8327-54b7f5ed15bd","block_type":"box","text":"in which clients are invested to deepen our","page_number":227,"box":{"x":527,"y":171,"width":305,"height":11}},{"id":"662fda2c-f355-46fa-b90f-e0803da9cc68","block_type":"box","text":"understanding of a company’s business model, including how they are overseeing material business risks and","page_number":227,"box":{"x":102,"y":186,"width":784,"height":11}},{"id":"5f8034ea-fdd2-4e33-91e8-41c544c185d3","block_type":"box","text":"opportunities over time, and to help inform our voting on behalf of clients.","page_number":227,"box":{"x":102,"y":201,"width":526,"height":11}},{"id":"576ea2ad-c13e-4908-bac1-7a8621c55d91","block_type":"box","text":"1","page_number":227,"box":{"x":630,"y":201,"width":4,"height":5}},{"id":"35efb212-fd5f-42f6-a45b-db43928e0630","block_type":"box","text":"2.","page_number":227,"box":{"x":69,"y":221,"width":12,"height":9}},{"id":"c38b011e-d67f-4636-90c8-40db1bdfddbb","block_type":"box","text":"Voting at shareholder meetings","page_number":227,"box":{"x":101,"y":221,"width":228,"height":11}},{"id":"4315dc4d-dfd3-412c-8ecf-828d6e388d5b","block_type":"box","text":"on management and shareholder proposals for clients who have authorized BIS","page_number":227,"box":{"x":335,"y":221,"width":566,"height":11}},{"id":"1d49f1f3-53c5-4b23-a651-792c0561c1c7","block_type":"box","text":"to vote on their behalf.","page_number":227,"box":{"x":101,"y":236,"width":160,"height":9}},{"id":"b913e247-ddb2-4f2e-8085-92e06b59914f","block_type":"box","text":"3.","page_number":227,"box":{"x":69,"y":256,"width":12,"height":9}},{"id":"1a008fe9-072d-434b-8981-0b9d7cc9b61c","block_type":"box","text":"Contributing to industry dialogue on stewardship","page_number":227,"box":{"x":101,"y":256,"width":356,"height":11}},{"id":"6175ad5b-377f-4c40-8fd0-c13521594b58","block_type":"box","text":"to share our perspectives on matters that may impact our","page_number":227,"box":{"x":462,"y":257,"width":412,"height":10}},{"id":"1bb3e081-9b89-45c6-a070-2d39875160ff","block_type":"box","text":"clients’ investments.","page_number":227,"box":{"x":101,"y":272,"width":147,"height":8}},{"id":"27f78be4-06d3-451d-938c-b8e238569ba4","block_type":"box","text":"4.","page_number":227,"box":{"x":69,"y":292,"width":12,"height":8}},{"id":"f8844859-2270-44cc-b172-b3ea1300c964","block_type":"box","text":"Reporting on our activities","page_number":227,"box":{"x":102,"y":292,"width":193,"height":11}},{"id":"82d44622-12bf-4da0-832c-ee484e1f1675","block_type":"box","text":"to inform clients about our stewardship efforts on their behalf through a range of","page_number":227,"box":{"x":301,"y":292,"width":579,"height":11}},{"id":"c08b220b-376d-4de4-a634-251453187f88","block_type":"box","text":"publications on our website and direct client communications.","page_number":227,"box":{"x":102,"y":307,"width":439,"height":11}},{"id":"9cf1ed63-01ab-4d09-8511-b2dcb5ba8045","block_type":"box","text":"Stewardship for clients with investment objectives relating to the low-carbon transition","page_number":227,"box":{"x":68,"y":337,"width":635,"height":11}},{"id":"1f5b249a-5a20-4024-962f-b6350c57236d","block_type":"box","text":"2, 3","page_number":227,"box":{"x":704,"y":337,"width":17,"height":6}},{"id":"acf4a825-3541-497d-ab50-1cd56dba0760","block_type":"box","text":"Some of our clients are pursuing decarbonization as an investment objective, including many of our largest","page_number":227,"box":{"x":102,"y":360,"width":761,"height":11}},{"id":"cd4463d5-b1db-433c-8430-1cc479c51459","block_type":"box","text":"European clients, who have made net zero commitments.","page_number":227,"box":{"x":70,"y":375,"width":407,"height":11}},{"id":"c85be2be-9a2d-43ff-aaa1-57b6d28c59ba","block_type":"box","text":"4","page_number":227,"box":{"x":479,"y":375,"width":4,"height":4}},{"id":"5e17177e-38cd-4b8d-adf2-5733816dc9e3","block_type":"box","text":"To support our clients’ unique and varied investment","page_number":227,"box":{"x":488,"y":375,"width":376,"height":11}},{"id":"cc586137-f42e-4059-893f-b9926e8d502a","block_type":"box","text":"objectives, in July 2024, BlackRock launched the Climate and Decarbonization Stewardship program.","page_number":227,"box":{"x":69,"y":390,"width":718,"height":11}},{"id":"dced9ed6-b40d-4dd2-8b06-d8a98cd1de2e","block_type":"box","text":"The Climate and Decarbonization Stewardship team (the dedicated team) applies these proxy voting guidelines","page_number":227,"box":{"x":101,"y":413,"width":789,"height":11}},{"id":"ebc4c82e-0f5e-460a-8cfc-c8f3e0f96c0d","block_type":"box","text":"(the Guidelines) to those funds that BlackRock offers to clients that have climate and decarbonization objectives and","page_number":227,"box":{"x":69,"y":428,"width":833,"height":11}},{"id":"eab0f5a4-d8d6-4d08-acfd-f28f4dfd6fdc","block_type":"box","text":"where the funds’ respective governing body has explicitly approved the application of the Guidelines (referred to in","page_number":227,"box":{"x":68,"y":443,"width":814,"height":11}},{"id":"5c55a838-a274-4452-a2cc-2a8a7e026aee","block_type":"box","text":"this document as “in-scope funds”).","page_number":227,"box":{"x":68,"y":458,"width":256,"height":11}},{"id":"b64b5f16-7cfc-4ee6-8214-7f9223e88026","block_type":"box","text":"5","page_number":227,"box":{"x":326,"y":458,"width":4,"height":5}},{"id":"010debeb-449a-4554-b089-0ad2642a74dc","block_type":"box","text":"Separately managed account (SMA) clients have a range of options, including","page_number":227,"box":{"x":336,"y":458,"width":551,"height":11}},{"id":"fa3d5faa-6a46-4a2a-8097-63d0b52aeaec","block_type":"box","text":"instructing BlackRock to apply these Guidelines to their SMA holdings.","page_number":227,"box":{"x":70,"y":473,"width":499,"height":11}},{"id":"6d560768-6423-4cb6-8630-0aa02131cdd1","block_type":"box","text":"THE CLIMATE AND DECARBONIZATION STEWARDSHIP GUIDELINES","page_number":227,"box":{"x":242,"y":503,"width":493,"height":9}},{"id":"c76b7ea5-7c0d-4ff9-b29c-ae1dceae1306","block_type":"box","text":"These Guidelines set out the dedicated team’s approach to engaging and voting on matters related to climate","page_number":227,"box":{"x":101,"y":526,"width":784,"height":11}},{"id":"b67399b7-4b00-4b49-8509-42106472df37","block_type":"box","text":"risks and the transition to a low-carbon economy at companies that are held by in-scope funds and accounts that","page_number":227,"box":{"x":69,"y":541,"width":806,"height":11}},{"id":"22450d52-134b-4e1d-942a-a00067c08f5f","block_type":"box","text":"apply these Guidelines.","page_number":227,"box":{"x":69,"y":556,"width":165,"height":11}},{"id":"2457d147-10cd-4b05-b003-d9342fe9e1f0","block_type":"box","text":"The Guidelines differ from the Benchmark Policies in that they consider, in addition to financial objectives,","page_number":227,"box":{"x":101,"y":579,"width":755,"height":11}},{"id":"97777949-52f5-47d6-aecb-bf496ac131fd","block_type":"box","text":"companies’ strategies to align with the transition to a low-carbon economy. They also incorporate the more ambitious","page_number":227,"box":{"x":69,"y":594,"width":834,"height":11}},{"id":"da5ce90b-9b36-4584-ba9f-337ab46f3cc4","block_type":"box","text":"goal of the Paris Agreement - namely to limit average global temperature rise to 1.5°C above pre-industrial levels.","page_number":227,"box":{"x":68,"y":609,"width":806,"height":11}},{"id":"3cb1de8a-9230-495a-9a83-f592b2940d66","block_type":"box","text":"6","page_number":227,"box":{"x":876,"y":609,"width":4,"height":5}},{"id":"fb4de975-40ab-40a2-9228-d0dcde8bc826","block_type":"box","text":"The Guidelines apply primarily to companies in sectors that play an important role in the transition to a low","page_number":227,"box":{"x":101,"y":632,"width":766,"height":11}},{"id":"aaae39c1-8ecd-4765-a292-e81a30eb1b2f","block_type":"box","text":"carbon economy. This includes companies which produce goods and services that contribute to real world","page_number":227,"box":{"x":69,"y":647,"width":753,"height":11}},{"id":"cbd8c5fd-d158-43ce-8acb-033e0f2d810f","block_type":"box","text":"decarbonization or have a carbon intensive business model and face outsized impacts from the low-carbon transition,","page_number":227,"box":{"x":69,"y":662,"width":836,"height":11}},{"id":"24c2b697-51e5-471c-92c0-f77651ffb37c","block_type":"box","text":"1","page_number":227,"box":{"x":69,"y":692,"width":4,"height":4}},{"id":"e1b8e50f-d94e-4204-ae69-658c36a8b12f","block_type":"box","text":"On February 11, 2025, the U.S. Securities and Exchange Commission (SEC) staff issued updated guidance for","page_number":227,"box":{"x":79,"y":691,"width":790,"height":11}},{"id":"16b738b8-9f1c-4116-aa99-04c8b6d83217","block_type":"box","text":"shareholders to maintain their eligibility to report their beneficial ownership under Schedule 13G of the Exchange Act.","page_number":227,"box":{"x":69,"y":706,"width":836,"height":12}},{"id":"f4e8e97a-8080-4c33-93f2-29ba19754e2a","block_type":"box","text":"We comply fully with these requirements and do not engage with portfolio companies for the purpose, or with the","page_number":227,"box":{"x":68,"y":721,"width":805,"height":12}},{"id":"830d2079-179f-4d74-95a6-ee7dbaa7dccc","block_type":"box","text":"effect, of changing or influencing control of any company.","page_number":227,"box":{"x":69,"y":737,"width":405,"height":11}},{"id":"29df9848-3de5-4eb4-9be8-f6e07765a8c9","block_type":"box","text":"2","page_number":227,"box":{"x":69,"y":755,"width":4,"height":4}},{"id":"6d160708-7c85-4256-9b5a-e266d02f6827","block_type":"box","text":"BlackRock has heard from a growing number of clients globally that they have made, or are planning to make,","page_number":227,"box":{"x":79,"y":754,"width":780,"height":11}},{"id":"27393cda-3ade-4466-b011-6bf7f9c415fc","block_type":"box","text":"commitments to align their investment strategies with the transition to a low-carbon economy. This stewardship","page_number":227,"box":{"x":69,"y":770,"width":793,"height":11}},{"id":"d2c3ed47-c46a-4555-85f5-ee196f503804","block_type":"box","text":"option helps those clients meet their climate and decarbonization investment objectives and is part of BlackRock’s","page_number":227,"box":{"x":69,"y":784,"width":820,"height":12}},{"id":"31fed2d8-1213-4257-bcc9-fa0e0041a049","block_type":"box","text":"commitment to offer clients choice.","page_number":227,"box":{"x":69,"y":799,"width":252,"height":10}},{"id":"491a2b78-04ee-4d41-aded-4e0b677e47c2","block_type":"box","text":"3","page_number":227,"box":{"x":69,"y":818,"width":4,"height":4}},{"id":"5302a019-bd51-4bff-b3f5-1486510233bc","block_type":"box","text":"Key climate, decarbonization and low-carbon transition related terms used in these Guidelines are explained in","page_number":227,"box":{"x":79,"y":817,"width":788,"height":11}},{"id":"ebcd4505-79b3-4727-924c-dfe63a795d7c","block_type":"box","text":"appendix 1.","page_number":227,"box":{"x":69,"y":833,"width":81,"height":10}},{"id":"3006766e-1f0e-4cae-8243-84c28e58f93e","block_type":"box","text":"4","page_number":227,"box":{"x":69,"y":850,"width":4,"height":5}},{"id":"970187e7-8db1-4504-af70-c73cdba65405","block_type":"box","text":"Includes a select group of our largest client relationships. Net zero commitments are sourced from respective","page_number":227,"box":{"x":79,"y":850,"width":782,"height":11}},{"id":"d9ea47d1-f26f-4f93-bc08-ef924eee4859","block_type":"box","text":"company websites, as of January 2025.","page_number":227,"box":{"x":69,"y":865,"width":284,"height":11}},{"id":"97f54d8b-ad91-47a8-b2a6-32c25b99789d","block_type":"box","text":"5","page_number":227,"box":{"x":69,"y":883,"width":4,"height":5}},{"id":"81ff13c6-f5c8-4e30-98d8-bf0c646c5983","block_type":"box","text":"A list of approved funds is on BlackRock’s website here.","page_number":227,"box":{"x":78,"y":883,"width":401,"height":11}},{"id":"103692ac-1717-47ab-ad21-f712b7d6e71c","block_type":"box","text":"6","page_number":227,"box":{"x":69,"y":901,"width":4,"height":4}},{"id":"e3c1fac4-c10f-4496-817f-f850b2f8e5e2","block_type":"box","text":"United Nations Climate Change, “The Paris Agreement,” accessed in December 2025.","page_number":227,"box":{"x":79,"y":900,"width":614,"height":12}},{"id":"bfa41635-dfc7-4517-9265-5c324b0b5cbe","block_type":"box","text":"BlackRock Investment Stewardship","page_number":227,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"be2d1f52-85b5-4550-9e14-6bc84cb3b74d","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 3","page_number":227,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"b821cf4e-5b00-451f-822a-513a2c2bd13e","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":227,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"52d4dc6c-aff0-49dd-bb83-9104bd61f2ea","block_type":"box","text":"particularly those representing the major sources of scopes 1, 2, and 3 greenhouse gas (GHG) emissions across","page_number":228,"box":{"x":70,"y":45,"width":806,"height":11}},{"id":"ac2967df-7e1f-480e-8e96-84d0dcb0fd41","block_type":"box","text":"companies held by in-scope funds and accounts that have selected the Guidelines.","page_number":228,"box":{"x":69,"y":60,"width":590,"height":11}},{"id":"8c9277e2-91e0-4524-aaaa-4be9518bdfaa","block_type":"box","text":"7","page_number":228,"box":{"x":661,"y":60,"width":4,"height":5}},{"id":"604fcb4b-f1d4-439d-8245-5eaab837381b","block_type":"box","text":"For companies and matters not related to climate and transition risks, the dedicated team follows BIS’","page_number":228,"box":{"x":102,"y":82,"width":731,"height":11}},{"id":"95400605-4ba8-4f14-9bb7-8c37dc379388","block_type":"box","text":"Benchmark Policies.","page_number":228,"box":{"x":70,"y":98,"width":141,"height":9}},{"id":"cfce67e2-1c37-406b-a1da-4192fafb11fc","block_type":"box","text":"8","page_number":228,"box":{"x":213,"y":98,"width":4,"height":4}},{"id":"7080d124-f900-4aff-95f2-c3a1ae0e5457","block_type":"box","text":"In addition, for clients who do not direct BlackRock to prioritize climate risks and","page_number":228,"box":{"x":224,"y":98,"width":572,"height":11}},{"id":"b8ebd440-7c08-429b-ae85-e16e0ed01f5a","block_type":"box","text":"decarbonization as an investment objective, BIS undertakes our stewardship responsibilities in line with our","page_number":228,"box":{"x":69,"y":113,"width":769,"height":11}},{"id":"87ac5ddd-d890-40d7-a39e-6efc9fda2cdd","block_type":"box","text":"Benchmark Policies, with a sole focus on advancing those clients’ long-term financial interests. This includes","page_number":228,"box":{"x":70,"y":128,"width":775,"height":11}},{"id":"8495fbce-ea67-40ed-8053-fb36fffb9ed8","block_type":"box","text":"consideration of climate-related risks and opportunities in a company’s business model, where material to the","page_number":228,"box":{"x":69,"y":143,"width":787,"height":11}},{"id":"6ff9b1b0-b360-4725-9bc3-9dd3037e68ab","block_type":"box","text":"company’s ability to deliver long-term financial returns.","page_number":228,"box":{"x":69,"y":158,"width":388,"height":11}},{"id":"fe8263c9-9713-4a28-84c6-51f15b074b85","block_type":"box","text":"Please see Appendix 2, which sets out the key differences between the BIS Benchmark Policies and these","page_number":228,"box":{"x":102,"y":181,"width":759,"height":11}},{"id":"2af77275-14e0-4108-a7fe-13759990622c","block_type":"box","text":"Guidelines on items related to climate risk and the transition to a low-carbon economy.","page_number":228,"box":{"x":69,"y":196,"width":617,"height":11}},{"id":"a5124bae-dd5f-46ea-a1f5-e6fed9286f7d","block_type":"box","text":"UNDERSTANDING THE INVESTMENT IMPLICATIONS OF THE TRANSITION TO A LOW-CARBON ECONOMY","page_number":228,"box":{"x":111,"y":226,"width":757,"height":9}},{"id":"7c53c308-23c0-4629-9c38-e2b16dff8963","block_type":"box","text":"Research from the BlackRock Investment Institute (BII) highlights that changing government policy, technology,","page_number":228,"box":{"x":102,"y":249,"width":785,"height":11}},{"id":"6ff4f288-308a-4ae9-abcd-69a3a540448e","block_type":"box","text":"and consumer and investor preferences are driving the transition to a low-carbon economy, but sectors and markets","page_number":228,"box":{"x":69,"y":264,"width":825,"height":11}},{"id":"ff6fc104-7a9a-4ef4-b1e0-fda33d7e56ab","block_type":"box","text":"can decarbonize at varying speeds given the dynamic and uncertain nature of technological feasibility, consumer","page_number":228,"box":{"x":69,"y":279,"width":802,"height":11}},{"id":"853b0bd3-d7a2-4091-b079-0637bb53d158","block_type":"box","text":"demand, and government policies, among other factors.","page_number":228,"box":{"x":69,"y":294,"width":395,"height":11}},{"id":"eb6bea3d-9e17-4852-9747-1546c406a60d","block_type":"box","text":"9, 10","page_number":228,"box":{"x":466,"y":294,"width":21,"height":6}},{"id":"e1397b24-da9a-4130-b742-17c21bfa8754","block_type":"box","text":"To better understand the shape and speed of a transition to a low-carbon economy, BlackRock has developed the","page_number":228,"box":{"x":101,"y":317,"width":808,"height":11}},{"id":"e15a34bb-6ead-4390-ac2e-49862d8883a0","block_type":"box","text":"BlackRock Investment Institute Transition Scenario (BIITS), powered by Aladdin","page_number":228,"box":{"x":70,"y":332,"width":559,"height":11}},{"id":"ee29201e-6a27-4c43-b7a3-4c42e2a55c38","block_type":"box","text":"®","page_number":228,"box":{"x":630,"y":332,"width":6,"height":5}},{"id":"e7695d84-7df5-454e-a431-00b3f07405b7","block_type":"box","text":"technology. BIITS is a research","page_number":228,"box":{"x":641,"y":332,"width":223,"height":11}},{"id":"32d52994-682b-4779-9184-99bbb638c030","block_type":"box","text":"based, analytical forecast of how the low-carbon transition is most likely to play out based on what we know and","page_number":228,"box":{"x":69,"y":347,"width":799,"height":11}},{"id":"991b0cce-236a-479f-8512-840ef8fdb1be","block_type":"box","text":"expect today. It can help inform a top-down assessment of a company’s business risk arising from the transition. BII","page_number":228,"box":{"x":69,"y":362,"width":828,"height":11}},{"id":"500ed9bf-9204-4281-be5d-e560f25589bf","block_type":"box","text":"based its key assumptions on rigorous research, and the input of BlackRock’s portfolio managers and other experts.","page_number":228,"box":{"x":69,"y":377,"width":834,"height":12}},{"id":"dcf3716f-3e36-431a-bb74-d21455c05af7","block_type":"box","text":"These Guidelines draw from the proprietary insights generated by BIITS and Aladdin Climate","page_number":228,"box":{"x":101,"y":400,"width":655,"height":11}},{"id":"286f37d2-cd2a-49d3-9a03-f09ea1a74b50","block_type":"box","text":"®","page_number":228,"box":{"x":756,"y":400,"width":6,"height":5}},{"id":"05cd5bd9-d000-4a79-9331-db7164a92ca3","block_type":"box","text":", BlackRock’s Risk","page_number":228,"box":{"x":764,"y":400,"width":131,"height":10}},{"id":"5c130885-f59e-464d-97ce-ba6a8c4a5358","block_type":"box","text":"and Quantitative Analysis Group, and the broader BIS team to help inform and guide engagement and voting activities","page_number":228,"box":{"x":69,"y":415,"width":838,"height":11}},{"id":"da245ca1-a6e2-4944-9f91-8c2f31091cfc","block_type":"box","text":"on behalf of clients invested in in-scope funds and SMAs.","page_number":228,"box":{"x":69,"y":430,"width":408,"height":11}},{"id":"71ed9dfe-6cc8-48fa-a1c0-e185c71d87ae","block_type":"box","text":"11","page_number":228,"box":{"x":479,"y":431,"width":9,"height":4}},{"id":"61fd800d-8411-4af4-832f-83012b0660d0","block_type":"box","text":"In doing so, the dedicated team takes into consideration","page_number":228,"box":{"x":495,"y":430,"width":401,"height":11}},{"id":"032f11ad-3340-4e04-af5b-ee5ee63453f9","block_type":"box","text":"the fact that the necessary data to assess individual companies currently has limitations, but is improving.","page_number":228,"box":{"x":68,"y":445,"width":763,"height":12}},{"id":"3f2037a5-3ac6-444b-868a-0fb5beaa67d0","block_type":"box","text":"THE GUIDELINES’ DESIGN PRINCIPLES","page_number":228,"box":{"x":347,"y":476,"width":284,"height":8}},{"id":"f3670b47-24e4-4f18-8d8c-84205a72573b","block_type":"box","text":"The framework of these Guidelines is designed to:","page_number":228,"box":{"x":101,"y":498,"width":357,"height":11}},{"id":"e65849df-8d2d-465c-940e-8d20f5bfa39c","block_type":"box","text":"•","page_number":228,"box":{"x":69,"y":521,"width":6,"height":5}},{"id":"bbdc74f6-dbf0-44f1-a4c4-7b4937b4d8c1","block_type":"box","text":"Prioritize sectors and companies that play an important role in the transition to a low-carbon economy:","page_number":228,"box":{"x":102,"y":518,"width":751,"height":11}},{"id":"1d500a2d-e937-44f2-8dc6-23f3c8e3f8c7","block_type":"box","text":"This","page_number":228,"box":{"x":859,"y":519,"width":28,"height":8}},{"id":"56d38e15-4ea4-4391-a694-5a61bd7879da","block_type":"box","text":"includes companies which produce goods and services that contribute to real world decarbonization or have a","page_number":228,"box":{"x":102,"y":534,"width":782,"height":11}},{"id":"b701fd39-5092-4ddd-9e2a-61d4c9f9d596","block_type":"box","text":"carbon intensive business model and face outsized impacts from the low-carbon transition.","page_number":228,"box":{"x":101,"y":549,"width":648,"height":11}},{"id":"b4598439-5d66-4513-990f-30cb59ab20f6","block_type":"box","text":"•","page_number":228,"box":{"x":69,"y":572,"width":6,"height":4}},{"id":"64bfc6d9-1c80-4725-9275-a1344b10f8a5","block_type":"box","text":"Apply a nuanced approach to our analysis that acknowledges the unevenness of the low-carbon transition","page_number":228,"box":{"x":101,"y":569,"width":772,"height":11}},{"id":"0d13c9d7-f2d2-48b1-83f2-24061f1d7fbe","block_type":"box","text":"across sectors and markets:","page_number":228,"box":{"x":101,"y":584,"width":208,"height":9}},{"id":"aad6e1f2-bf2d-47dd-ace3-51fd810b1e21","block_type":"box","text":"The Guidelines take into consideration the varying speeds at which sectors and","page_number":228,"box":{"x":315,"y":584,"width":566,"height":11}},{"id":"f3318417-914e-448f-9f77-afe634d8f2d4","block_type":"box","text":"markets are decarbonizing based on technological feasibility, consumer demand, government policy, regulatory","page_number":228,"box":{"x":102,"y":599,"width":789,"height":11}},{"id":"aa20eda4-1b8b-4288-bff8-49d6ac8bdba7","block_type":"box","text":"frameworks and other factors. Further, the Guidelines recognize that these factors are uncertain and dynamic.","page_number":228,"box":{"x":101,"y":614,"width":785,"height":11}},{"id":"f64e7818-cf1a-41c0-aa0f-e9110189663b","block_type":"box","text":"•","page_number":228,"box":{"x":69,"y":637,"width":6,"height":5}},{"id":"6319d621-0de0-4c13-83bf-8cf73de5f61d","block_type":"box","text":"Take a long-term, pragmatic approach to the low-carbon transition that minimizes disruption to portfolio","page_number":228,"box":{"x":101,"y":634,"width":759,"height":11}},{"id":"577c86f5-486a-4c25-8fbd-59bdce42eb2a","block_type":"box","text":"companies and their key stakeholders:","page_number":228,"box":{"x":101,"y":649,"width":282,"height":11}},{"id":"8185f92c-719c-4959-9543-002752f72f5b","block_type":"box","text":"The Guidelines recognize the challenges that many companies face in","page_number":228,"box":{"x":389,"y":649,"width":496,"height":12}},{"id":"4a559e60-eae6-4aea-b197-18e9359fee2c","block_type":"box","text":"adapting their business models to the low-carbon transition. It reflects a view that a smooth transition — where","page_number":228,"box":{"x":102,"y":664,"width":794,"height":12}},{"id":"031b5016-a010-4246-afd4-8c7642166e93","block_type":"box","text":"companies adapt while continuing to deliver financial returns — is a better long-term investment outcome and","page_number":228,"box":{"x":101,"y":680,"width":783,"height":11}},{"id":"b4512627-53f2-4848-bac8-1e6780367e02","block_type":"box","text":"7","page_number":228,"box":{"x":69,"y":709,"width":4,"height":5}},{"id":"e8d321e6-da58-412b-a765-fbd94f4f7727","block_type":"box","text":"These companies may already be low-carbon operators or be demonstrating momentum in reducing emissions in","page_number":228,"box":{"x":78,"y":709,"width":803,"height":11}},{"id":"d9783814-a3e7-480a-860b-1549c0d145be","block_type":"box","text":"their operations, providing key inputs or goods and services that support real world decarbonization, or pivoting their","page_number":228,"box":{"x":68,"y":724,"width":832,"height":11}},{"id":"31d9b9a3-338c-419b-b38b-a5f0f30ed5a4","block_type":"box","text":"current business model to contribute to the transition to a low-carbon economy.","page_number":228,"box":{"x":69,"y":739,"width":565,"height":11}},{"id":"bc720d38-4ebb-427c-abdc-d4f522f8ba72","block_type":"box","text":"8","page_number":228,"box":{"x":69,"y":757,"width":4,"height":5}},{"id":"446638d5-dbba-4b1b-b4ed-a92331d5b74d","block_type":"box","text":"The BIS Benchmark Policies – which are comprised of the BIS Global Principles, regional voting guidelines, and","page_number":228,"box":{"x":78,"y":757,"width":789,"height":11}},{"id":"4cb5c528-47d5-4b5d-b286-b3242455147a","block_type":"box","text":"Engagement Priorities – apply to clients’ assets invested through index equity strategies, take a financial materiality","page_number":228,"box":{"x":70,"y":772,"width":829,"height":11}},{"id":"34ec92ed-2560-45cc-9195-bf3beb05f369","block_type":"box","text":"based approach, and are focused solely on advancing clients’ financial interests.","page_number":228,"box":{"x":69,"y":787,"width":576,"height":11}},{"id":"4c257fad-fb38-4937-be97-22ccdf1c03b1","block_type":"box","text":"9","page_number":228,"box":{"x":69,"y":805,"width":4,"height":4}},{"id":"1c716596-da53-4514-86d2-a31b747ef4cd","block_type":"box","text":"BII’s latest research shows that while decarbonization continues, its pace is increasingly uneven across sectors and","page_number":228,"box":{"x":79,"y":805,"width":828,"height":11}},{"id":"595ed35d-c206-4c1a-901b-1ecc4fd67bcb","block_type":"box","text":"regions, and overall slower than previously expected.","page_number":228,"box":{"x":69,"y":820,"width":375,"height":11}},{"id":"c5ad010f-53c4-4376-b44d-d8c9792dabd6","block_type":"box","text":"10","page_number":228,"box":{"x":69,"y":838,"width":9,"height":4}},{"id":"316a10ef-b02f-4b1f-bde3-b55aa72c9747","block_type":"box","text":"BlackRock, “Evolving energy transition, evolving opportunities,” February 2025.","page_number":228,"box":{"x":84,"y":837,"width":565,"height":12}},{"id":"a3faac67-9371-4b13-95c5-415a67efdbf2","block_type":"box","text":"11","page_number":228,"box":{"x":69,"y":855,"width":9,"height":5}},{"id":"e4821c1c-4071-4022-9f1e-34630e626fa6","block_type":"box","text":"Aladdin","page_number":228,"box":{"x":83,"y":855,"width":51,"height":9}},{"id":"a2c34f59-2f3d-4bcf-be9a-1f6a909207ae","block_type":"box","text":"®","page_number":228,"box":{"x":135,"y":855,"width":6,"height":5}},{"id":"ec4f8c32-d252-465c-8ae1-58a5bbc6173e","block_type":"box","text":"Climate is a suite of climate analytics including forward-looking scenario analysis and net zero alignment","page_number":228,"box":{"x":147,"y":855,"width":745,"height":11}},{"id":"4faf99c7-a500-43f8-84c5-f3ff488ff10b","block_type":"box","text":"analytics. Aladdin","page_number":228,"box":{"x":69,"y":870,"width":123,"height":11}},{"id":"2c3f2ac5-0b89-49ad-bbb1-f8a975a9a13a","block_type":"box","text":"®","page_number":228,"box":{"x":193,"y":870,"width":6,"height":5}},{"id":"b1992030-f836-485f-801e-1b9ea2985995","block_type":"box","text":"is a proprietary investment and risk management platform.","page_number":228,"box":{"x":205,"y":870,"width":418,"height":11}},{"id":"2686180d-9db1-44d4-b884-c743c14a16cf","block_type":"box","text":"BlackRock Investment Stewardship","page_number":228,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"e2b9b0e6-f6b0-4341-9f75-9571e4217176","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 4","page_number":228,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"36af4486-87c7-4772-9192-8980efc5478f","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":228,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5deab958-6224-4b39-862f-235d2f868a62","block_type":"box","text":"less disruptive to other key stakeholders than a disorderly transition. Further, the Guidelines consider the","page_number":229,"box":{"x":102,"y":45,"width":751,"height":11}},{"id":"fad35e68-0aeb-47ab-9941-5bd3225a0651","block_type":"box","text":"differences between the actions and outcomes over which company management has influence, and those it","page_number":229,"box":{"x":101,"y":60,"width":778,"height":11}},{"id":"a75e1c18-7654-449c-840a-540c651142f9","block_type":"box","text":"does not.","page_number":229,"box":{"x":101,"y":75,"width":66,"height":9}},{"id":"6bc79420-c2bf-40f7-a459-717cde09a348","block_type":"box","text":"•","page_number":229,"box":{"x":69,"y":98,"width":6,"height":4}},{"id":"bf6d3a8c-38b7-4ea0-9595-734b4381110f","block_type":"box","text":"Focus on useful, contextualized disclosures that help inform investors views, while recognizing data","page_number":229,"box":{"x":102,"y":95,"width":729,"height":11}},{"id":"b36ebb15-5382-4c87-8f84-beb7298c9ab1","block_type":"box","text":"limitations:","page_number":229,"box":{"x":102,"y":110,"width":80,"height":9}},{"id":"bfdae78c-691f-4102-a105-d1710ee6cf4b","block_type":"box","text":"Under the Guidelines, the dedicated team looks for disclosures that outline key milestones and","page_number":229,"box":{"x":189,"y":110,"width":679,"height":11}},{"id":"69b21bc1-37f4-4273-961d-cfc8e7c84a05","block_type":"box","text":"dependencies underpinning the company’s low-carbon transition strategy, explain the trade-offs required to adapt","page_number":229,"box":{"x":101,"y":125,"width":807,"height":12}},{"id":"32803b0a-129f-42f2-a522-0e461393fd4d","block_type":"box","text":"the business model, and include relevant data and narrative.","page_number":229,"box":{"x":101,"y":141,"width":433,"height":10}},{"id":"21b75053-114b-4c5b-8ce0-cf7858e39a52","block_type":"box","text":"•","page_number":229,"box":{"x":69,"y":163,"width":6,"height":5}},{"id":"dac9cb0d-f52e-4137-a08c-9f4d0e592a86","block_type":"box","text":"Consistency with the participating clients’ position as a minority investor:","page_number":229,"box":{"x":101,"y":161,"width":541,"height":11}},{"id":"c3baa872-865e-48f2-950c-bc37da9774f1","block_type":"box","text":"The boards and executive leadership","page_number":229,"box":{"x":648,"y":161,"width":261,"height":11}},{"id":"00f8304d-8b71-4168-a333-ac262f1d9c56","block_type":"box","text":"of companies determine a company’s strategy and its implementation. Under the Guidelines, the dedicated team","page_number":229,"box":{"x":102,"y":176,"width":805,"height":11}},{"id":"5b7640bd-4d3c-491a-9d52-b1970a457438","block_type":"box","text":"makes decisions on how to engage companies and vote proxies independently, based on its professional","page_number":229,"box":{"x":102,"y":191,"width":748,"height":11}},{"id":"ac16221f-bd78-433c-8d3a-6dd1d142180a","block_type":"box","text":"judgment of the priorities and outcomes most aligned with participating clients’ investment objectives.","page_number":229,"box":{"x":100,"y":206,"width":730,"height":11}},{"id":"2ceb8e59-98ee-4949-92a1-c6279a30a8ce","block_type":"box","text":"Voting approach under the Guidelines","page_number":229,"box":{"x":68,"y":236,"width":273,"height":11}},{"id":"f1ac10e9-1ace-40dd-9751-0cb6f195e126","block_type":"box","text":"12","page_number":229,"box":{"x":342,"y":237,"width":9,"height":4}},{"id":"4253471a-3402-4133-94bb-b6e74ee62fb3","block_type":"box","text":"When evaluating each voting item across management or shareholder proposals, the dedicated team applies a","page_number":229,"box":{"x":101,"y":259,"width":791,"height":11}},{"id":"525dc8d3-2977-4540-9c78-1902a1139582","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":229,"box":{"x":69,"y":274,"width":813,"height":11}},{"id":"775146d3-723d-4c03-81a2-f8057bcbe051","block_type":"box","text":"acknowledges the distinction between what company management can influence and what lies beyond its control. As","page_number":229,"box":{"x":69,"y":289,"width":833,"height":11}},{"id":"8dc19b0f-0dd9-49d6-ac32-8a8e24a48b2f","block_type":"box","text":"a result, voting decisions — on behalf of in-scope funds and SMAs — on similar proposals included on different","page_number":229,"box":{"x":69,"y":304,"width":799,"height":11}},{"id":"22500224-dc48-40ed-a35f-2c3dfe768c28","block_type":"box","text":"companies’ shareholder meeting agendas may vary depending on company, sector, or market-specific circumstances.","page_number":229,"box":{"x":69,"y":319,"width":837,"height":12}},{"id":"8a0a3b73-cec3-4a6b-aeb6-f606a36139e8","block_type":"box","text":"Consistent with the investment objective of each fund or account that has selected these Guidelines, the","page_number":229,"box":{"x":102,"y":342,"width":748,"height":11}},{"id":"f675a983-4862-4c70-8a51-0288fafe3646","block_type":"box","text":"dedicated team will look to the companies to demonstrate the following:","page_number":229,"box":{"x":69,"y":357,"width":513,"height":11}},{"id":"a2f0649e-aeef-4bc4-b6fb-d2f90766fe7f","block_type":"box","text":"Corporate Disclosures","page_number":229,"box":{"x":69,"y":387,"width":160,"height":11}},{"id":"5147f7d8-a032-46b2-9d08-06501a436f6c","block_type":"box","text":"13","page_number":229,"box":{"x":230,"y":388,"width":9,"height":4}},{"id":"3712e9b6-9790-49dc-85d9-3a7084711b36","block_type":"box","text":"In the context of these Guidelines, the dedicated team looks for companies to provide sufficient disclosure to","page_number":229,"box":{"x":102,"y":410,"width":781,"height":11}},{"id":"7934ead4-ad19-4d8a-9aa8-7a266d262b6b","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":229,"box":{"x":69,"y":425,"width":825,"height":11}},{"id":"f147451a-4341-4380-a375-4d112d2ca498","block_type":"box","text":"to companies that are important to the transition to a low-carbon economy to explain the strategy and governance","page_number":229,"box":{"x":68,"y":440,"width":812,"height":12}},{"id":"d1624465-464c-403b-aeca-56f533206ea3","block_type":"box","text":"frameworks that they have determined most appropriate, which may include:","page_number":229,"box":{"x":68,"y":455,"width":545,"height":11}},{"id":"c26e4583-301e-4828-bf5b-3f122454520f","block_type":"box","text":"(1) a low-carbon transition strategy to demonstrate their alignment with the ambition to limit average global","page_number":229,"box":{"x":69,"y":476,"width":769,"height":11}},{"id":"5e22fdb8-399f-43b1-bc6d-1b0eb2d71678","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":229,"box":{"x":101,"y":491,"width":800,"height":11}},{"id":"2ebd6243-79c8-463c-9a60-23a620daaedb","block_type":"box","text":"net-zero GHG emissions by 2050, with appropriate near- and medium-term milestones to assess their progress.","page_number":229,"box":{"x":102,"y":506,"width":796,"height":11}},{"id":"e4ca6628-e75b-4144-96b4-488033372d63","block_type":"box","text":"(2) low-carbon transition-related reporting. Standardized disclosure of sustainability-related data supports investors","page_number":229,"box":{"x":69,"y":526,"width":828,"height":11}},{"id":"e4c645ee-22c8-4984-8619-38d90ea6350b","block_type":"box","text":"in making informed decisions. The International Sustainability Standards Board (ISSB) standards, IFRS S1 and","page_number":229,"box":{"x":102,"y":541,"width":787,"height":11}},{"id":"d44b34a8-889d-4cf9-bbaf-60d3ac4aad4d","block_type":"box","text":"S2, represent one such approach to standardization that the dedicated team finds useful in its analysis.","page_number":229,"box":{"x":102,"y":556,"width":741,"height":11}},{"id":"9a582fc4-efc9-44e0-b2b1-6765b71c5338","block_type":"box","text":"14, 15","page_number":229,"box":{"x":845,"y":557,"width":25,"height":5}},{"id":"9e8123c1-6aa2-41c7-aee2-a1005deee29b","block_type":"box","text":"IFRS","page_number":229,"box":{"x":877,"y":556,"width":30,"height":9}},{"id":"d7936c53-071b-467d-be37-b71050ab9379","block_type":"box","text":"S1 addresses the general requirements of sustainability reporting and IFRS S2 sets out the disclosures that","page_number":229,"box":{"x":102,"y":571,"width":774,"height":12}},{"id":"b90566ec-9c2a-4567-9594-cc037fa1020a","block_type":"box","text":"provide investors with decision-useful information about a company’s most significant climate- and low-carbon","page_number":229,"box":{"x":102,"y":586,"width":781,"height":12}},{"id":"5edc289e-7464-4b04-9c01-0784b38aa3c0","block_type":"box","text":"transition-related risks and opportunities. This includes receiving independent, third-party assurances, as audit","page_number":229,"box":{"x":101,"y":602,"width":792,"height":11}},{"id":"a9cb10c4-d770-4673-ac6e-900543df3fa1","block_type":"box","text":"and assurance standards are developed.","page_number":229,"box":{"x":102,"y":617,"width":290,"height":11}},{"id":"9d0a18c8-e451-4a9a-b809-7c91c7be8986","block_type":"box","text":"12","page_number":229,"box":{"x":69,"y":646,"width":9,"height":5}},{"id":"b1d721f0-84ff-4d2a-801d-a86b034f4308","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":229,"box":{"x":83,"y":646,"width":825,"height":11}},{"id":"77004f5e-f429-4195-827b-9daf8816105a","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":229,"box":{"x":69,"y":661,"width":833,"height":11}},{"id":"923c06cf-22e3-4156-b263-08afee5d8587","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":229,"box":{"x":68,"y":676,"width":830,"height":11}},{"id":"08e0bdc3-34f5-4683-9bd0-795b649410c6","block_type":"box","text":"company, as well as individual ballot items at shareholder meetings.","page_number":229,"box":{"x":69,"y":691,"width":486,"height":11}},{"id":"87d02fa5-daa4-40ff-99a6-1a55d2811eee","block_type":"box","text":"13","page_number":229,"box":{"x":69,"y":709,"width":9,"height":5}},{"id":"90bf4f87-d3c8-4c3b-951d-60a8c5bc1d2b","block_type":"box","text":"Given data and measurement limitations, companies may need to provide estimated GHG emissions where","page_number":229,"box":{"x":84,"y":709,"width":764,"height":11}},{"id":"38cabf1d-4c7e-42d0-841d-eff4f7b3d9af","block_type":"box","text":"reporting methodologies are nascent. In addition, certain disclosures related to a company’s plans for adapting their","page_number":229,"box":{"x":69,"y":724,"width":834,"height":11}},{"id":"f9c0471d-2434-4821-a3e9-ca5a068f3f48","block_type":"box","text":"business models through the low-carbon transition may require forward-looking statements.","page_number":229,"box":{"x":69,"y":739,"width":651,"height":11}},{"id":"d1ddd510-9593-40e2-91cd-8de16b66810d","block_type":"box","text":"14","page_number":229,"box":{"x":69,"y":757,"width":9,"height":4}},{"id":"b8a542a6-6825-4a95-97f3-be4eea59ee42","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Reporting Standards","page_number":229,"box":{"x":83,"y":757,"width":744,"height":11}},{"id":"b05b2583-057e-48ea-bbba-03641b0b516e","block_type":"box","text":"(IFRS) Foundation. The standards build on the Task Force on Climate-related Financial Disclosures (TCFD) framework","page_number":229,"box":{"x":69,"y":772,"width":828,"height":11}},{"id":"37ec02a6-f7f3-42b7-ac0b-b36f8b86d533","block_type":"box","text":"and the standards and metrics developed by the Sustainability Accounting Standards Board (SASB), which have both","page_number":229,"box":{"x":69,"y":787,"width":830,"height":11}},{"id":"e9f842f1-3193-4838-a59c-efd1cfac739f","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":229,"box":{"x":69,"y":802,"width":809,"height":11}},{"id":"10ecfd1a-1654-4d46-8429-ea87950714da","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":229,"box":{"x":70,"y":817,"width":778,"height":11}},{"id":"80e28929-81f0-4dd1-98f0-8e3bca3d954c","block_type":"box","text":"Disclosures.” Websites accessed in December 2025.","page_number":229,"box":{"x":70,"y":832,"width":380,"height":9}},{"id":"d0cd125f-af8b-4d40-86e1-fa81b189a181","block_type":"box","text":"15","page_number":229,"box":{"x":69,"y":850,"width":9,"height":5}},{"id":"68ea0a51-5139-47fb-bc64-02ae56085c11","block_type":"box","text":"A number of jurisdictions are consulting on adopting the standards issued to date or have already committed to","page_number":229,"box":{"x":83,"y":850,"width":795,"height":11}},{"id":"a89c7339-7e39-41ec-b200-a3829ad95580","block_type":"box","text":"doing so. BIS does not mandate any specific disclosure framework companies should use, and recognize that some","page_number":229,"box":{"x":69,"y":865,"width":826,"height":11}},{"id":"a6b02070-de23-4ebd-8897-72e5c5832b85","block_type":"box","text":"companies may report using different standards, some of which may be required by regulation. In such cases, we","page_number":229,"box":{"x":69,"y":880,"width":811,"height":11}},{"id":"bf52fd02-dc1f-4b96-b564-705491e624fd","block_type":"box","text":"ask that companies highlight the metrics that are industry- or company-specific. We also recognize that companies","page_number":229,"box":{"x":69,"y":895,"width":816,"height":12}},{"id":"edcb1315-02c3-4338-ae00-736c52b9a5cd","block_type":"box","text":"may be phasing in reporting over several years. We do not prescribe timelines regarding when companies should","page_number":229,"box":{"x":69,"y":911,"width":803,"height":11}},{"id":"518160bf-4cff-4c16-9f7f-1fa88500edbd","block_type":"box","text":"BlackRock Investment Stewardship","page_number":229,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"5111c032-b192-4f6b-9cd8-6c8e014181f9","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 5","page_number":229,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"88714108-3c38-499c-861d-32ef31dd97c9","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":229,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2ca86ced-29f0-439b-b464-def4bf77a599","block_type":"box","text":"(3) scope 1 and scope 2, and most significant scope 3 GHG emissions","page_number":230,"box":{"x":69,"y":45,"width":513,"height":11}},{"id":"d542d46d-4ac2-4c4e-aba6-20eb0ac66eb2","block_type":"box","text":"16, 17","page_number":230,"box":{"x":583,"y":45,"width":26,"height":5}},{"id":"6da4a909-4166-467e-9572-5f75a99455e5","block_type":"box","text":"In addition, the dedicated team looks to","page_number":230,"box":{"x":615,"y":45,"width":283,"height":10}},{"id":"fd227efc-2de0-4bbb-b57f-f0fbcc99d81a","block_type":"box","text":"companies to disclose their emissions reduction targets for scope 1 and 2 emissions, science-based where","page_number":230,"box":{"x":101,"y":60,"width":770,"height":11}},{"id":"323f7456-0c49-4001-b1fc-c0f747319216","block_type":"box","text":"possible. The team welcomes disclosure of targets or indicative goals, where companies have set them, for","page_number":230,"box":{"x":102,"y":75,"width":768,"height":11}},{"id":"31bba9a3-b8eb-4400-b3b1-88ed01de146d","block_type":"box","text":"scope 3 emissions reductions. Scope 3 information, including how a company is working with its value chain to","page_number":230,"box":{"x":102,"y":90,"width":792,"height":11}},{"id":"8a3355aa-faff-41a8-b5e0-9083cc442164","block_type":"box","text":"accelerate reductions in GHG intensity, provides useful insight to investors focused on investing in the low","page_number":230,"box":{"x":102,"y":105,"width":760,"height":11}},{"id":"cd77cc02-b4f2-4dc7-8cc0-6c11f29cb7b2","block_type":"box","text":"carbon transition and understanding the impact of their investments on their decarbonization goals.","page_number":230,"box":{"x":101,"y":120,"width":709,"height":12}},{"id":"3a69c95e-3d08-4775-a8ed-4c75a737e72f","block_type":"box","text":"18","page_number":230,"box":{"x":812,"y":121,"width":9,"height":4}},{"id":"1ad72cd0-b797-4920-8fe1-cd4e2f5b4ec4","block_type":"box","text":"However,","page_number":230,"box":{"x":827,"y":120,"width":62,"height":11}},{"id":"d66bdd47-a476-4260-82af-a46d88742fa0","block_type":"box","text":"the team recognizes that companies have varying ability to influence the emissions across the different parts of","page_number":230,"box":{"x":101,"y":135,"width":802,"height":12}},{"id":"5a635a32-5d89-460f-9222-836422cf8711","block_type":"box","text":"their value chain and, therefore, it is helpful when disclosures explain the implications for the achievement of","page_number":230,"box":{"x":101,"y":150,"width":780,"height":11}},{"id":"080fabe9-0775-43d2-94f0-d710b482cc3b","block_type":"box","text":"their decarbonization targets. For some companies that play an important role in the low-carbon transition, scope","page_number":230,"box":{"x":101,"y":166,"width":807,"height":11}},{"id":"0ba9e333-84d5-4567-8a40-639a6b1a0177","block_type":"box","text":"3 may represent their only significant source of GHG emissions in the value chain. While we do not believe","page_number":230,"box":{"x":102,"y":181,"width":759,"height":11}},{"id":"9d0726e9-cda9-43d2-b98e-dcf958e254fb","block_type":"box","text":"companies should be required to enforce emissions reduction targets outside of their control, where relevant, we","page_number":230,"box":{"x":101,"y":196,"width":808,"height":11}},{"id":"4d11bcf5-4101-4b4d-af5e-189a614d6c65","block_type":"box","text":"look for disclosures on how the company approaches the low-carbon transition in these cases. This may include","page_number":230,"box":{"x":102,"y":211,"width":797,"height":11}},{"id":"49efbf0e-a769-47af-b6ff-6a55a256a318","block_type":"box","text":"plans and targets to grow businesses that contribute to real world decarbonization, forward-looking capital or","page_number":230,"box":{"x":102,"y":226,"width":777,"height":11}},{"id":"9fd3e05e-81f1-4e3a-8faf-23be5b6387cf","block_type":"box","text":"procurement allocation plans to net-zero aligned activities or suppliers, and strategies to mitigate material","page_number":230,"box":{"x":102,"y":241,"width":755,"height":11}},{"id":"1fed8531-4139-467a-8558-1e9ce6af0dce","block_type":"box","text":"transition risks.","page_number":230,"box":{"x":101,"y":257,"width":110,"height":8}},{"id":"40830ebe-7fd0-4470-8805-e138d6075130","block_type":"box","text":"(4) where relevant, disclosures that describe the company’s exposure to climate-related physical risks—such as","page_number":230,"box":{"x":69,"y":277,"width":808,"height":11}},{"id":"1b8accb1-e154-4750-9f14-f0e76ea2a601","block_type":"box","text":"acute risks from extreme weather events or chronic risks from long-term shifts in climate patterns—and how","page_number":230,"box":{"x":102,"y":292,"width":773,"height":11}},{"id":"14a54b3d-20fa-4abc-b69c-c4c24346e7a1","block_type":"box","text":"these risks could reasonably be expected to affect the company’s operations, assets, or supply chains.","page_number":230,"box":{"x":101,"y":307,"width":739,"height":11}},{"id":"a178c9a6-2dd7-481a-8ebd-873d185d9ebc","block_type":"box","text":"Transition plans","page_number":230,"box":{"x":68,"y":337,"width":115,"height":11}},{"id":"c76129d0-ea98-4572-ae35-cbfec8f11894","block_type":"box","text":"Some companies have published transition plans outlining how they intend to implement their low-carbon","page_number":230,"box":{"x":102,"y":360,"width":748,"height":11}},{"id":"c3f093bb-1a12-4fcf-bdb2-a80853d9f7d4","block_type":"box","text":"transition strategies. As defined by the ISSB, a transition plan “lays out the entity’s targets, actions or resources for","page_number":230,"box":{"x":68,"y":375,"width":831,"height":11}},{"id":"098bbab3-687b-4be7-86c5-61a9c3ecc6c5","block_type":"box","text":"its transition towards a lower-carbon economy, including actions such as reducing its greenhouse gas emissions”","page_number":230,"box":{"x":70,"y":390,"width":805,"height":11}},{"id":"b6e8ba45-9ff1-4de7-9074-6e1fb4bb71e1","block_type":"box","text":"(see Appendix 1).","page_number":230,"box":{"x":69,"y":405,"width":122,"height":11}},{"id":"f1f581d0-6e8a-47b1-971e-8453bfb92271","block_type":"box","text":"19","page_number":230,"box":{"x":193,"y":405,"width":9,"height":5}},{"id":"056b2178-9483-47c9-bbc9-6a3d7048b246","block_type":"box","text":"Work is also underway in a number of jurisdictions on establishing a common approach in a market to corporate","page_number":230,"box":{"x":101,"y":428,"width":800,"height":11}},{"id":"b2ae4b21-f8b1-4f74-86b7-d6522864d8c2","block_type":"box","text":"transition plans.","page_number":230,"box":{"x":68,"y":443,"width":115,"height":11}},{"id":"dedadae2-13e6-4514-8933-1944a8c2d320","block_type":"box","text":"20","page_number":230,"box":{"x":184,"y":443,"width":9,"height":5}},{"id":"7af0a46b-ee43-47fc-bd98-910f6fde698b","block_type":"box","text":"Recent guidance from the ISSB on disclosures about transition plans highlights the convergence of","page_number":230,"box":{"x":200,"y":443,"width":706,"height":11}},{"id":"55adc9b6-e9f8-4612-9f21-60adc9f5a7be","block_type":"box","text":"reporting approaches.","page_number":230,"box":{"x":69,"y":458,"width":156,"height":11}},{"id":"c7a9bab1-7b67-4279-85cb-4a5930b9ea08","block_type":"box","text":"While the preparation of a transition plan, or lack thereof, is not, in itself, a voting issue, these disclosures","page_number":230,"box":{"x":101,"y":481,"width":762,"height":11}},{"id":"edb5b40f-b2c7-47fa-97b8-c205c9abfda6","block_type":"box","text":"typically provide valuable insights that inform the dedicated team’s approach to engaging and voting on matters","page_number":230,"box":{"x":68,"y":496,"width":796,"height":11}},{"id":"1bbb02cf-320f-4de6-a494-5384b7a1628a","block_type":"box","text":"related to climate and transition risks on behalf of in-scope funds and accounts.","page_number":230,"box":{"x":69,"y":511,"width":570,"height":11}},{"id":"663d0434-9de2-4ed2-9586-05abfb92eb74","block_type":"box","text":"make sustainability-related disclosures but appreciate it when companies produce them sufficiently in advance of","page_number":230,"box":{"x":69,"y":537,"width":810,"height":12}},{"id":"38b97fd8-f087-4041-b7b5-4c8b9617156d","block_type":"box","text":"their shareholder meeting, to the best of their abilities, to provide investors with time to assess the data and make","page_number":230,"box":{"x":68,"y":553,"width":822,"height":11}},{"id":"89c9c3c1-ac68-4fcc-8e01-988a2519b66a","block_type":"box","text":"informed voting decisions.","page_number":230,"box":{"x":70,"y":568,"width":184,"height":11}},{"id":"26a35b4d-6a90-4134-aff0-270e3de3b01f","block_type":"box","text":"16","page_number":230,"box":{"x":69,"y":586,"width":9,"height":4}},{"id":"4d6a7922-45c9-4bc5-94dc-3a9be404562f","block_type":"box","text":"FTSE Russell address the materiality of different categories of scope 3 GHG emissions by sector in a January 2024","page_number":230,"box":{"x":84,"y":585,"width":825,"height":12}},{"id":"f197fc79-455f-4203-9ec8-b37c51caa69e","block_type":"box","text":"paper: FTSE Russel, “Scope for improvement: Solving the Scope 3 conundrum,” January 2024, accessed in","page_number":230,"box":{"x":70,"y":600,"width":768,"height":12}},{"id":"9226c9d3-0ae2-4f1d-a28a-6eff26f27b73","block_type":"box","text":"December 2025.","page_number":230,"box":{"x":70,"y":616,"width":118,"height":9}},{"id":"00096e0a-2e54-4f18-ac30-79ba4ef251f9","block_type":"box","text":"17","page_number":230,"box":{"x":69,"y":634,"width":8,"height":4}},{"id":"8cd27a9d-67c8-4073-9261-e5ebdb5abb6d","block_type":"box","text":"Under this policy, the dedicated team looks for GHG emissions disclosures to be aligned with the Greenhouse Gas","page_number":230,"box":{"x":84,"y":633,"width":815,"height":12}},{"id":"d422d611-2c26-4aaa-bbc3-738aec39be51","block_type":"box","text":"Protocol (GHG Protocol). The Protocol Standards and Guidance are currently being updated to ensure they continue to","page_number":230,"box":{"x":69,"y":648,"width":838,"height":12}},{"id":"945d23e8-2758-458d-be56-a28bf0c5ae59","block_type":"box","text":"provide “a rigorous and credible accounting foundation for businesses to measure, plan and track progress toward","page_number":230,"box":{"x":70,"y":663,"width":816,"height":12}},{"id":"cbd25b31-dd21-4294-a8dc-86759795f707","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":230,"box":{"x":69,"y":679,"width":784,"height":11}},{"id":"9e664ad7-cf28-4395-a36f-12075936d929","block_type":"box","text":"18","page_number":230,"box":{"x":69,"y":697,"width":9,"height":4}},{"id":"7bc9e40d-b58c-43de-8f60-565b04f8acee","block_type":"box","text":"The dedicated team does not believe the purpose of scope 3 disclosure requirements should be to push publicly","page_number":230,"box":{"x":83,"y":696,"width":804,"height":11}},{"id":"db50a647-77f9-4024-a87b-a265f5845f19","block_type":"box","text":"traded companies into the role of enforcing emission reduction targets outside of their control. Given methodological","page_number":230,"box":{"x":68,"y":711,"width":832,"height":12}},{"id":"552aee83-b303-4e82-8383-c10116256f6d","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":230,"box":{"x":69,"y":726,"width":832,"height":12}},{"id":"1f7ec540-5b47-4f81-9ad4-eb98246e507e","block_type":"box","text":"useful when companies focus their disclosures on those of the fifteen scope 3 GHG Protocol categories that are","page_number":230,"box":{"x":69,"y":742,"width":800,"height":11}},{"id":"cda3ce8a-f582-4ce2-92e4-d7bc6764f5a7","block_type":"box","text":"material to their business models.","page_number":230,"box":{"x":69,"y":757,"width":243,"height":9}},{"id":"b251698c-3964-4438-a2ec-a54ff493326a","block_type":"box","text":"19","page_number":230,"box":{"x":69,"y":775,"width":9,"height":4}},{"id":"1abb2c8f-5a72-4457-a072-aca17c866e69","block_type":"box","text":"International Financial Reporting Standards, “IFRS S2: Climate-related Disclosures,” June 2023, accessed in","page_number":230,"box":{"x":84,"y":774,"width":777,"height":12}},{"id":"92b0e0e4-eb65-4424-9fa8-03831a85fa4e","block_type":"box","text":"December 2025.","page_number":230,"box":{"x":70,"y":790,"width":118,"height":8}},{"id":"038e86ab-b409-4624-9c20-359f5be6e23c","block_type":"box","text":"20","page_number":230,"box":{"x":69,"y":807,"width":9,"height":5}},{"id":"ced1d201-31a9-49e3-8f63-4335714a547b","block_type":"box","text":"More companies are developing such plans, and public policymakers in certain markets are signaling their","page_number":230,"box":{"x":84,"y":807,"width":758,"height":11}},{"id":"57b4ac86-cd90-4731-92f2-40c08d461278","block_type":"box","text":"intentions to require them or already have requirements in place, such as Australia, Brazil, and the European Union","page_number":230,"box":{"x":70,"y":822,"width":820,"height":11}},{"id":"7b4f6d78-6f79-404e-b41b-2b8762b33f2e","block_type":"box","text":"(please see the International Transition Plan Network for information). BlackRock views transition plans as a method","page_number":230,"box":{"x":69,"y":837,"width":829,"height":11}},{"id":"c58e6d7e-41e9-40f6-b027-d61f232c0d51","block_type":"box","text":"for a company to both internally assess and externally communicate its long-term strategy, ambition, objectives, and","page_number":230,"box":{"x":68,"y":852,"width":829,"height":12}},{"id":"18a9875f-d5a4-4841-9bf9-603b42595240","block_type":"box","text":"actions to create financial value through the global transition towards a low-carbon economy. Across the landscape","page_number":230,"box":{"x":69,"y":868,"width":818,"height":11}},{"id":"7c4723d9-0e0b-4217-80ea-d720e01c19c3","block_type":"box","text":"there remains divergence on the objectives of such plans and the details they should contain. Website accessed in","page_number":230,"box":{"x":68,"y":883,"width":821,"height":11}},{"id":"15939695-52ba-4fd9-96f7-b2f80f8c7d97","block_type":"box","text":"December 2025.","page_number":230,"box":{"x":70,"y":898,"width":118,"height":9}},{"id":"f02624fa-91c4-4628-98bf-e86023dc5aaa","block_type":"box","text":"BlackRock Investment Stewardship","page_number":230,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"76419651-036e-4c60-8b89-fb01b2febb17","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 6","page_number":230,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"19ca3952-c5ff-464d-8e5f-1e3f8cdb053e","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":230,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"455328cd-4d7c-42f7-af00-55aa25e97429","block_type":"box","text":"Boards and directors","page_number":231,"box":{"x":69,"y":45,"width":151,"height":9}},{"id":"590e9b5e-8e4b-4de6-b1be-5227827f6835","block_type":"box","text":"An effective and well-functioning board that has appropriate governance structures to facilitate oversight of a","page_number":231,"box":{"x":101,"y":67,"width":775,"height":12}},{"id":"f26fef1c-75b9-4ec2-8d3b-a8d7e5004431","block_type":"box","text":"company’s management and strategic initiatives is critical to the company’s ability to deliver on its low-carbon","page_number":231,"box":{"x":69,"y":83,"width":782,"height":11}},{"id":"d430aeb2-3052-4362-b82f-601a725b79f4","block_type":"box","text":"transition strategy. In assessing the role and effectiveness of the board in this regard, the dedicated team seeks to","page_number":231,"box":{"x":68,"y":98,"width":825,"height":11}},{"id":"c29e975e-7b9e-4e36-b450-f1798760d072","block_type":"box","text":"understand whether:","page_number":231,"box":{"x":69,"y":113,"width":145,"height":9}},{"id":"529f21d4-f7a4-42ec-82c7-959858e2c34d","block_type":"box","text":"•","page_number":231,"box":{"x":69,"y":136,"width":6,"height":4}},{"id":"191ec76a-7eb3-4b89-bde4-5d8c6c1a8bd4","block_type":"box","text":"The board has clear oversight responsibilities for climate and low-carbon transition-related risks and","page_number":231,"box":{"x":101,"y":133,"width":711,"height":11}},{"id":"bbc638ef-b81a-4a59-978b-bdf7db8c07fc","block_type":"box","text":"opportunities in the company’s business model. The Guidelines consider the whole board to have responsibility","page_number":231,"box":{"x":102,"y":148,"width":796,"height":11}},{"id":"a9492260-aa21-4848-b285-bde11e4de554","block_type":"box","text":"for oversight of the company’s long-term strategy, including those aspects related to the transition to a low","page_number":231,"box":{"x":101,"y":163,"width":765,"height":11}},{"id":"579667e6-5e80-4d1c-8a3f-c0c6e0e45b49","block_type":"box","text":"carbon economy.","page_number":231,"box":{"x":101,"y":178,"width":119,"height":11}},{"id":"a862b157-4ae4-4ae6-b053-49e2149b9030","block_type":"box","text":"•","page_number":231,"box":{"x":69,"y":201,"width":6,"height":5}},{"id":"e576c244-0874-480b-a6b7-407d6bc04d96","block_type":"box","text":"Management has established a robust low-carbon transition framework and long-term strategy, with clear","page_number":231,"box":{"x":102,"y":198,"width":747,"height":12}},{"id":"89a503f2-42aa-420a-87ec-14092e0c3fb9","block_type":"box","text":"accountability for delivery by senior executives.","page_number":231,"box":{"x":102,"y":213,"width":333,"height":12}},{"id":"54bd185c-48ae-42bd-8460-ff08b90ad41b","block_type":"box","text":"•","page_number":231,"box":{"x":69,"y":237,"width":6,"height":4}},{"id":"1eae7dd5-c35f-4fa8-b823-7c4542b259b3","block_type":"box","text":"The capital management strategy explains how the company allocates investments to (traditional and next","page_number":231,"box":{"x":101,"y":234,"width":758,"height":11}},{"id":"3d2b34c7-6e7c-48e3-852b-d401fde96274","block_type":"box","text":"generation) business lines and innovation, and returns cash to shareholders, consistent with the company’s","page_number":231,"box":{"x":101,"y":249,"width":772,"height":11}},{"id":"ac7a0ae9-5be0-4a47-bdaa-d83e376e0647","block_type":"box","text":"stated low-carbon transition strategy.","page_number":231,"box":{"x":102,"y":264,"width":260,"height":11}},{"id":"d47b025e-f81d-45e6-87f2-fde399e96210","block_type":"box","text":"•","page_number":231,"box":{"x":69,"y":287,"width":6,"height":4}},{"id":"46acb761-2310-476d-841f-ed0d9d7793bc","block_type":"box","text":"The climate and low-carbon transition risks most likely to significantly impact the business are integrated into the","page_number":231,"box":{"x":101,"y":284,"width":807,"height":11}},{"id":"09c86afd-7624-458d-bad2-ae92d89e6451","block_type":"box","text":"company’s enterprise risk management processes and reporting.","page_number":231,"box":{"x":101,"y":299,"width":465,"height":11}},{"id":"127da2d1-2d78-4182-be32-7e687e3eccbe","block_type":"box","text":"•","page_number":231,"box":{"x":69,"y":322,"width":6,"height":5}},{"id":"7b9cc7b9-c2f9-4585-8b8b-0e74f60c4f64","block_type":"box","text":"The company has set scope 1 and 2 GHG emissions reduction targets, science-based and independently verified","page_number":231,"box":{"x":101,"y":319,"width":804,"height":12}},{"id":"476f4bfb-5f6e-4882-88fd-be73b3cd2b4e","block_type":"box","text":"where possible, against a baseline, that are consistent with the ambition to limit average global temperature rise","page_number":231,"box":{"x":101,"y":335,"width":806,"height":11}},{"id":"ed653e0d-5040-423d-be45-18c4aa34226e","block_type":"box","text":"to no more than 1.5°C above pre-industrial levels.","page_number":231,"box":{"x":101,"y":350,"width":354,"height":10}},{"id":"48f2cb05-cddc-49b9-90a4-bbe014af4c2e","block_type":"box","text":"•","page_number":231,"box":{"x":69,"y":373,"width":6,"height":4}},{"id":"103f2672-3a4f-4ccc-a83f-88c5a7b8b8f7","block_type":"box","text":"There is a clear link between the company’s scope 1 and 2 GHG emissions reduction targets over time and its","page_number":231,"box":{"x":101,"y":370,"width":788,"height":11}},{"id":"11648566-c46e-430d-aa23-27199397a58e","block_type":"box","text":"long-term low-carbon transition strategy.","page_number":231,"box":{"x":102,"y":385,"width":282,"height":11}},{"id":"b57d9fb2-1602-44af-b046-f2d64f613b7f","block_type":"box","text":"•","page_number":231,"box":{"x":69,"y":408,"width":6,"height":4}},{"id":"5354574c-4ed7-46d8-8ac6-d698ae19c21f","block_type":"box","text":"The company is monitoring its most significant scope 3 emissions and disclosing these where it is confident in","page_number":231,"box":{"x":101,"y":405,"width":790,"height":11}},{"id":"a5555a04-92b7-429f-b83e-12e37da23552","block_type":"box","text":"the data. Given forthcoming regulatory requirements in certain jurisdictions, some companies are voluntarily","page_number":231,"box":{"x":101,"y":420,"width":774,"height":11}},{"id":"4fcd7e26-8fe1-4c6d-acfb-af3d8da6e9a0","block_type":"box","text":"disclosing scope 3 emissions reductions targets and plans, setting out how they are working on decarbonization","page_number":231,"box":{"x":101,"y":435,"width":800,"height":11}},{"id":"dcf0a650-4402-4616-8f0e-63af0c881c23","block_type":"box","text":"with the different constituents in their value chain.","page_number":231,"box":{"x":101,"y":450,"width":358,"height":9}},{"id":"c57410c0-2417-4170-b676-9065dcba65e0","block_type":"box","text":"21","page_number":231,"box":{"x":461,"y":451,"width":9,"height":4}},{"id":"6bc01784-7b35-472a-a4d8-fc8ed3d43665","block_type":"box","text":"•","page_number":231,"box":{"x":69,"y":473,"width":6,"height":5}},{"id":"d469d255-337a-425e-bf45-519e0fdfe0b1","block_type":"box","text":"The company’s governance and oversight processes for managing material risks associated with corporate","page_number":231,"box":{"x":101,"y":470,"width":761,"height":12}},{"id":"36815fab-e3f0-426f-bbdc-bd19fbf44d39","block_type":"box","text":"political activities including applicable policies and procedures where relevant.","page_number":231,"box":{"x":102,"y":486,"width":556,"height":11}},{"id":"3d354202-2019-4885-b77f-a2703d9e324c","block_type":"box","text":"22","page_number":231,"box":{"x":660,"y":486,"width":8,"height":4}},{"id":"a92dbe9f-bb5f-4ea9-a958-6d4f001bf06a","block_type":"box","text":"The dedicated team looks for","page_number":231,"box":{"x":674,"y":486,"width":208,"height":9}},{"id":"5fffab4d-0db8-4f58-ad81-c5103c4db63b","block_type":"box","text":"public policy engagement to be consistent with a company’s stated strategic policy objectives, including those","page_number":231,"box":{"x":102,"y":501,"width":783,"height":11}},{"id":"d48cd95b-bdfc-4143-bb58-26263cfd7dd4","block_type":"box","text":"related to the low-carbon transition.","page_number":231,"box":{"x":102,"y":516,"width":251,"height":9}},{"id":"0fc1df0d-9e54-45fa-b783-c6fd787223a2","block_type":"box","text":"Voting against directors over concerns about climate risk","page_number":231,"box":{"x":68,"y":546,"width":420,"height":11}},{"id":"a8fe802f-2355-46f7-834d-7b52bab60f6f","block_type":"box","text":"In implementing these Guidelines, the dedicated team generally supports non-executive directors standing for","page_number":231,"box":{"x":102,"y":569,"width":781,"height":11}},{"id":"c5bc698f-3db5-4df3-9298-09d3bacd7388","block_type":"box","text":"election where, in its assessment based on company disclosures and engagement, a company is executing on its","page_number":231,"box":{"x":69,"y":584,"width":811,"height":11}},{"id":"12660d1c-2b0c-4d45-884a-06fbdf16c224","block_type":"box","text":"commitment to align with the transition to a low-carbon economy, as defined above. Where the dedicated team","page_number":231,"box":{"x":69,"y":599,"width":788,"height":11}},{"id":"f8873083-5d09-42b2-9ea5-9c24947451fc","block_type":"box","text":"determines this is not the case, it may vote against the election of one or more directors who the team identifies as","page_number":231,"box":{"x":69,"y":614,"width":828,"height":11}},{"id":"56b5ba07-4cb6-4851-a8a9-1db99c569223","block_type":"box","text":"having the most responsibility for the issue. The directors most likely to be in focus are the chair of the board","page_number":231,"box":{"x":69,"y":629,"width":780,"height":11}},{"id":"0e23db12-5b1d-415c-a699-6fa7d31b9f92","block_type":"box","text":"committee with low-carbon transition, climate or sustainability risk oversight responsibilities, other members of the","page_number":231,"box":{"x":69,"y":644,"width":817,"height":12}},{"id":"9d1f3af5-8084-41c3-8193-21bb26f9e1c5","block_type":"box","text":"relevant committee, the lead independent director or the non-executive chair of the board. In certain markets, the","page_number":231,"box":{"x":69,"y":659,"width":808,"height":11}},{"id":"de2143a8-1227-4733-9dca-07c0a5e0d288","block_type":"box","text":"team may withhold support for the discharge of the supervisory board or equivalent and/or board reports.","page_number":231,"box":{"x":68,"y":675,"width":758,"height":11}},{"id":"10d95e91-15df-4d1b-97cd-9ca216b75c61","block_type":"box","text":"23","page_number":231,"box":{"x":828,"y":675,"width":9,"height":4}},{"id":"4a37840f-2cb9-4064-a60e-46383e79c090","block_type":"box","text":"21","page_number":231,"box":{"x":69,"y":704,"width":9,"height":5}},{"id":"004f41fb-dfd0-4a78-a1e5-5af00706bec3","block_type":"box","text":"FTSE Russell address the materiality of different categories of scope 3 GHG emissions by sector in a January 2024","page_number":231,"box":{"x":84,"y":704,"width":825,"height":11}},{"id":"6df8fec5-67dd-40ac-a666-e47c5687ded3","block_type":"box","text":"paper “Scope for improvement: Solving the Scope 3 conundrum.” Their research indicates that there are 2-3 material","page_number":231,"box":{"x":70,"y":719,"width":835,"height":11}},{"id":"0b38c91d-521d-453a-8fe6-d495bac92d4e","block_type":"box","text":"scope 3 GHG emissions categories by sector. The research uses a definition of materiality from the GHG Protocol,","page_number":231,"box":{"x":69,"y":734,"width":813,"height":11}},{"id":"4c9fff5f-6199-4139-9f5d-4157f8058d38","block_type":"box","text":"which “encourages companies to maintain a representative inventory of the “most significant GHG emissions, [that]","page_number":231,"box":{"x":68,"y":749,"width":828,"height":11}},{"id":"5bde64eb-759b-49eb-989d-68ae24af4e95","block_type":"box","text":"offer the most significant GHG reduction opportunities and are most relevant to the company’s business goals.”","page_number":231,"box":{"x":69,"y":764,"width":801,"height":12}},{"id":"eab80032-0205-4c7a-8093-8ed1f89c8c7c","block_type":"box","text":"Website accessed in December 2025.","page_number":231,"box":{"x":68,"y":779,"width":272,"height":9}},{"id":"1d5f56b4-8ca3-4c2e-9b4d-6539f8d52211","block_type":"box","text":"22","page_number":231,"box":{"x":69,"y":797,"width":9,"height":5}},{"id":"f59315a6-daa2-4b34-a459-5c5952296272","block_type":"box","text":"Corporate political activities may include lobbying as defined by local regulations, policy engagement (including","page_number":231,"box":{"x":84,"y":797,"width":787,"height":11}},{"id":"d8e25e29-561e-49ee-a812-e379a3daec86","block_type":"box","text":"trade association memberships), and corporate political contributions.","page_number":231,"box":{"x":68,"y":812,"width":500,"height":11}},{"id":"dc28960a-c00b-45de-be9f-da29ce6895f7","block_type":"box","text":"23","page_number":231,"box":{"x":69,"y":830,"width":9,"height":5}},{"id":"3ac9ad46-f913-4415-8153-4a77383c7956","block_type":"box","text":"Board report votes are generally advisory and relate to reports issued by the board of directors that may contain","page_number":231,"box":{"x":84,"y":830,"width":801,"height":11}},{"id":"77e8ca99-c3c7-4faa-9214-8276c7ccc094","block_type":"box","text":"information on a company’s sustainability efforts, operational resilience, or financial condition, among others.","page_number":231,"box":{"x":70,"y":845,"width":782,"height":11}},{"id":"ebce42fc-99e0-4e52-81a1-2f0c8bab584b","block_type":"box","text":"BlackRock Investment Stewardship","page_number":231,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"6c1cd76a-0c86-437b-87dd-e65dbdee9eb9","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 7","page_number":231,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"513458b9-2f05-4f01-bad2-ed7d5350e3a0","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":231,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e4b00b94-6e8b-4535-8509-b0577f928c0e","block_type":"box","text":"Where the dedicated team has not supported director elections over climate concerns in a prior year, and the","page_number":232,"box":{"x":101,"y":45,"width":780,"height":11}},{"id":"36ddfa26-46e6-4c19-841b-e71a9afa245a","block_type":"box","text":"company has not subsequently made progress towards aligning with the transition to a low-carbon economy, the team","page_number":232,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"16699c80-5952-4ea5-9abb-a8cd966807cc","block_type":"box","text":"may escalate by not supporting the re-election of additional responsible directors.","page_number":232,"box":{"x":69,"y":75,"width":582,"height":11}},{"id":"d1d32212-e8d2-4b5d-9ffd-75ae67a32215","block_type":"box","text":"24","page_number":232,"box":{"x":653,"y":75,"width":9,"height":5}},{"id":"9b769190-d484-456d-9faa-b4abcec6317e","block_type":"box","text":"Management proposals to approve a climate strategy or progress report","page_number":232,"box":{"x":69,"y":105,"width":528,"height":11}},{"id":"61ff55d2-4070-4b4b-8949-586bf63e8fba","block_type":"box","text":"In certain markets, company management may submit proposals— commonly referred to as “Say on Climate” —","page_number":232,"box":{"x":102,"y":128,"width":807,"height":11}},{"id":"efda1e0d-f971-435c-b019-b70897dbc348","block_type":"box","text":"seeking shareholder approval of their climate action plans or progress reports. The Guidelines consider these","page_number":232,"box":{"x":69,"y":143,"width":782,"height":11}},{"id":"7d144e4d-0ad1-4540-b966-54608eb1b05d","block_type":"box","text":"proposals as a valuable governance mechanism that can enhance transparency, accountability, and investors’","page_number":232,"box":{"x":70,"y":158,"width":782,"height":11}},{"id":"c8b67016-c87f-48bf-9775-533d1be06cc4","block_type":"box","text":"understanding of a company’s climate strategy. The dedicated team generally supports management’s climate","page_number":232,"box":{"x":69,"y":173,"width":787,"height":11}},{"id":"e96d09c3-5535-4436-83f1-339cfe7a74a8","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":232,"box":{"x":69,"y":188,"width":838,"height":12}},{"id":"f54d774e-80fb-4477-8fab-8175e0754a83","block_type":"box","text":"transition. Similarly, the dedicated team generally supports management’s proposal on a progress report if the","page_number":232,"box":{"x":68,"y":203,"width":792,"height":12}},{"id":"0134c566-3875-4ab8-9535-afd3f8bde4ac","block_type":"box","text":"company has clearly explained its progress against, and any deviations from or changes to, its stated low-carbon","page_number":232,"box":{"x":69,"y":218,"width":803,"height":12}},{"id":"17a5a15a-083f-4de1-a69f-cd97423e66ec","block_type":"box","text":"transition plan and targets.","page_number":232,"box":{"x":68,"y":234,"width":193,"height":11}},{"id":"987399cb-b940-40f8-b921-f15b73cf53c6","block_type":"box","text":"Shareholder proposals on climate and low-carbon transition matters","page_number":232,"box":{"x":68,"y":264,"width":495,"height":11}},{"id":"56ec9ffc-879a-4370-aee9-d438fc3d393c","block_type":"box","text":"In most markets, shareholders can submit proposals to be voted on at a company’s shareholder meeting, as","page_number":232,"box":{"x":102,"y":287,"width":777,"height":11}},{"id":"e213ef8c-b900-446a-a9ed-7c1228adbc64","block_type":"box","text":"long as certain requirements are met. Shareholder proposals span a wide range of topics and have varying degrees","page_number":232,"box":{"x":70,"y":302,"width":824,"height":11}},{"id":"9f9934af-82f0-4dde-8649-85f865af001a","block_type":"box","text":"of relevance for companies across sectors, locations, and business models.","page_number":232,"box":{"x":69,"y":317,"width":543,"height":11}},{"id":"178a0eb6-0797-4c83-b620-89f83c5b9155","block_type":"box","text":"Each shareholder proposal is evaluated on a case-by-case basis, focusing on its merit while considering the","page_number":232,"box":{"x":102,"y":339,"width":767,"height":12}},{"id":"b27f369b-4deb-4f3e-b5af-64c7c02fbd1b","block_type":"box","text":"company’s individual circumstances. When the dedicated team votes in support of a proposal, it is not necessarily","page_number":232,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"69df0761-dd04-4bf3-af94-84f115090783","block_type":"box","text":"endorsing every element of the proposal or the reasoning, objectives, or supporting statement of the proponent.","page_number":232,"box":{"x":69,"y":370,"width":800,"height":11}},{"id":"a5441493-2ff0-4b42-973c-6c23af76204c","block_type":"box","text":"In addition to financial materiality, the Guidelines consider the proposal’s relevance to the company’s low-carbon","page_number":232,"box":{"x":102,"y":392,"width":802,"height":12}},{"id":"65f1485a-4a32-481f-baa5-fa1a750d8c33","block_type":"box","text":"transition strategy and targets. The dedicated team assesses the implications for, and the relevance to, the","page_number":232,"box":{"x":68,"y":407,"width":770,"height":12}},{"id":"5a59f624-2dd5-494d-a2b4-b98bae875fb3","block_type":"box","text":"company’s stated low-carbon transition strategy and targets. Under the Guidelines, the team may support","page_number":232,"box":{"x":69,"y":423,"width":754,"height":11}},{"id":"1e837ebf-e939-4f35-89c9-72bacffe0550","block_type":"box","text":"shareholder proposals that, for example, ask a company to:","page_number":232,"box":{"x":69,"y":438,"width":425,"height":11}},{"id":"3d2f38a3-8ec9-46bb-b222-083092770da0","block_type":"box","text":"•","page_number":232,"box":{"x":69,"y":461,"width":6,"height":4}},{"id":"563504c1-fef6-452f-9f54-3bdf4b300962","block_type":"box","text":"Publish a business plan, and related disclosures, consistent with the ambition to limit average global","page_number":232,"box":{"x":102,"y":458,"width":719,"height":11}},{"id":"d12e523e-de7d-4768-8f50-bb9591adb3f3","block_type":"box","text":"temperature rise to no more than 1.5°C above pre-industrial levels","page_number":232,"box":{"x":101,"y":473,"width":474,"height":11}},{"id":"38bfe283-3337-4547-bc2e-87c764dd9140","block_type":"box","text":"•","page_number":232,"box":{"x":69,"y":496,"width":6,"height":5}},{"id":"e8fd0724-6d71-4db5-bd29-95ebad14a3d0","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":232,"box":{"x":101,"y":493,"width":807,"height":11}},{"id":"83fc4056-bdc2-4676-b6be-3d3a7e46d97a","block_type":"box","text":"goal of the company achieving net zero GHG emissions by 2050","page_number":232,"box":{"x":101,"y":508,"width":457,"height":12}},{"id":"40c09166-d87c-492e-b493-a3eb6971dd6c","block_type":"box","text":"•","page_number":232,"box":{"x":69,"y":531,"width":6,"height":5}},{"id":"353afde2-0fac-4911-8882-f6c5e247df67","block_type":"box","text":"Disclose the categories of scope 3 GHG emissions most significant to a company’s business model","page_number":232,"box":{"x":102,"y":528,"width":712,"height":12}},{"id":"ff00f442-3e95-4c4a-ae15-69479c403066","block_type":"box","text":"•","page_number":232,"box":{"x":69,"y":551,"width":6,"height":5}},{"id":"55e06b3a-0ca3-4610-9a0d-1f123484207b","block_type":"box","text":"Improve voluntary disclosures on the alignment of a company’s climate-related corporate political activities with","page_number":232,"box":{"x":102,"y":549,"width":794,"height":11}},{"id":"1ef912b5-87c6-4f95-9943-bcbc888ead31","block_type":"box","text":"its strategic policy positions, where existing disclosure is insufficient","page_number":232,"box":{"x":102,"y":564,"width":489,"height":11}},{"id":"60ab8107-438b-458c-925a-9ceaa78e81b8","block_type":"box","text":"25","page_number":232,"box":{"x":592,"y":564,"width":9,"height":5}},{"id":"eeb677ba-ce36-4c31-8b8e-28644992fdd7","block_type":"box","text":"The dedicated team does not support shareholder proposals that seek to constrain board or management","page_number":232,"box":{"x":101,"y":587,"width":758,"height":11}},{"id":"6e5c7144-1c63-43d8-916e-4430a212c041","block_type":"box","text":"decision-making or direct specific business or strategic decisions.","page_number":232,"box":{"x":69,"y":601,"width":468,"height":12}},{"id":"fcd3e9d6-80ec-492c-8f64-618aa97199c9","block_type":"box","text":"RELATED MATTERS","page_number":232,"box":{"x":419,"y":632,"width":140,"height":9}},{"id":"42dad28c-3e67-44c3-bee9-ca179e2de3c1","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":232,"box":{"x":101,"y":655,"width":771,"height":11}},{"id":"08747188-0b65-40c1-8aef-7ecc67d65614","block_type":"box","text":"matters relevant to the transition to a low-carbon economy. Under these Guidelines, the dedicated team engages,","page_number":232,"box":{"x":69,"y":670,"width":808,"height":11}},{"id":"45d1906b-1b71-47af-bb23-94d2e79d6195","block_type":"box","text":"where appropriate, to enhance its understanding of a company’s approach. Generally, voting on these matters would","page_number":232,"box":{"x":68,"y":685,"width":831,"height":11}},{"id":"462b2cb4-4bc2-48bc-a758-ba6fddb2fbb0","block_type":"box","text":"be covered by BIS’ Benchmark Policies.","page_number":232,"box":{"x":69,"y":700,"width":280,"height":11}},{"id":"4e870783-444c-48d5-b9a1-2457c6f80f1d","block_type":"box","text":"Executive compensation","page_number":232,"box":{"x":69,"y":730,"width":177,"height":11}},{"id":"e52a7fc0-64ac-4b7f-a177-0b20e6324932","block_type":"box","text":"The dedicated team looks to company boards to put in place a compensation structure that incentivizes and","page_number":232,"box":{"x":101,"y":753,"width":772,"height":11}},{"id":"28d560dc-352d-4fc9-958e-32963afbe00b","block_type":"box","text":"rewards executives appropriately. Some companies, in light of their long-term strategy, may decide to include relevant","page_number":232,"box":{"x":69,"y":768,"width":837,"height":11}},{"id":"83ff40d5-255f-4732-83ae-0f6750793313","block_type":"box","text":"GHG emissions reduction targets or low-carbon transition-related metrics in their incentive plans. In such cases, the","page_number":232,"box":{"x":69,"y":783,"width":826,"height":11}},{"id":"a315fdc4-1edc-46e2-b4b9-0d0a0deb8504","block_type":"box","text":"dedicated team would engage to understand the alignment between those metrics and the company’s stated climate","page_number":232,"box":{"x":69,"y":798,"width":834,"height":11}},{"id":"7042cd9b-0a63-4f93-9920-c6eee28ae692","block_type":"box","text":"24","page_number":232,"box":{"x":69,"y":828,"width":9,"height":4}},{"id":"e60d1d8d-6198-4693-ab9d-dd10856504da","block_type":"box","text":"While the dedicated team may escalate voting by not supporting additional management proposals, principally","page_number":232,"box":{"x":83,"y":827,"width":787,"height":12}},{"id":"b676b1f9-802b-4d9b-a317-1b82b834d271","block_type":"box","text":"director elections, the team does not consider filing shareholder proposals, preannouncing voting intentions or using","page_number":232,"box":{"x":69,"y":842,"width":832,"height":12}},{"id":"dfaa2047-153d-4dce-ab6b-3091c609d5de","block_type":"box","text":"the media to amplify concerns as appropriate courses of action. The dedicated team will continue to take a","page_number":232,"box":{"x":68,"y":857,"width":765,"height":12}},{"id":"74d2c989-7d29-466d-ab4e-34bf49e2fb22","block_type":"box","text":"constructive, long-term focused approach, to engagement and voting on behalf of clients under these Guidelines.","page_number":232,"box":{"x":69,"y":873,"width":805,"height":11}},{"id":"b1280d88-5124-4dd1-a819-1f49888d1ab5","block_type":"box","text":"25","page_number":232,"box":{"x":69,"y":891,"width":9,"height":4}},{"id":"bf3511a4-0ff8-4586-b4cf-7788a4892587","block_type":"box","text":"Corporate political activities may include lobbying as defined by local regulations, policy engagement (including","page_number":232,"box":{"x":84,"y":890,"width":787,"height":12}},{"id":"2d3c5403-2f06-40ac-a826-18446cc3860e","block_type":"box","text":"trade association memberships), and corporate political contributions.","page_number":232,"box":{"x":68,"y":906,"width":500,"height":10}},{"id":"8b208aaa-b221-423d-80e1-8a22546465e1","block_type":"box","text":"BlackRock Investment Stewardship","page_number":232,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"04194739-3ddb-4d5f-8ee4-b01d7949f6b8","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 8","page_number":232,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"5cb383dd-16d4-4ca9-ab9d-d98eb8170ee3","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":232,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ca6200fc-4ad6-4de0-a69a-9a7d60325ae8","block_type":"box","text":"strategy. Clear disclosure also helps investors assess whether pay structures are consistent with long-term climate","page_number":233,"box":{"x":69,"y":45,"width":821,"height":11}},{"id":"3c9c0f9d-c1e9-4912-bcc2-952908601245","block_type":"box","text":"strategy and risk management.","page_number":233,"box":{"x":69,"y":60,"width":219,"height":11}},{"id":"d155ed6f-e8cc-4f76-b52f-ed98403f12e5","block_type":"box","text":"Auditors and audit-related issues","page_number":233,"box":{"x":68,"y":90,"width":240,"height":9}},{"id":"db953872-9f50-40cd-b625-27ead6ab1e76","block_type":"box","text":"For companies with material climate or transition risks or opportunities in their business models, the dedicated","page_number":233,"box":{"x":102,"y":113,"width":793,"height":11}},{"id":"8172afff-e61e-4349-a93b-d9856e8c9af6","block_type":"box","text":"team is interested in understanding whether the company considers and, if relevant, quantifies, and accounts for","page_number":233,"box":{"x":68,"y":128,"width":807,"height":11}},{"id":"d136c7ce-6c8d-4c72-a5df-7f6d9bca0723","block_type":"box","text":"material climate-related risks in its financial statements, including if the company explains such risks within the","page_number":233,"box":{"x":69,"y":143,"width":794,"height":11}},{"id":"06e9afe4-1668-4f78-8313-685aceb1e469","block_type":"box","text":"context of its audit report. The team notes that assurance of corporate disclosures related to climate risk and the","page_number":233,"box":{"x":69,"y":158,"width":812,"height":11}},{"id":"143d833d-d810-4e3c-a611-e7dbc902c625","block_type":"box","text":"transition to a low-carbon economy is still nascent.","page_number":233,"box":{"x":68,"y":173,"width":361,"height":11}},{"id":"8ff5f46b-ef63-479d-a8df-f5a6cdf3625c","block_type":"box","text":"Mergers, acquisitions, asset sales, and other special situations","page_number":233,"box":{"x":69,"y":203,"width":463,"height":11}},{"id":"e00d31eb-2ba3-4b6e-ab3b-9215318c2c8d","block_type":"box","text":"Special situations will be considered on their financial merits, but the dedicated team may engage on climate","page_number":233,"box":{"x":102,"y":226,"width":783,"height":11}},{"id":"ddcbeb44-8bf4-457d-a580-909b552ed535","block_type":"box","text":"related factors under these Guidelines where a transaction may significantly alter a company’s climate strategy or a","page_number":233,"box":{"x":69,"y":241,"width":824,"height":11}},{"id":"75103dea-fefd-4af4-a79c-5a0ddbee393e","block_type":"box","text":"shareholder activist has proposed governance, strategic or operational changes that may impact its climate strategy.","page_number":233,"box":{"x":69,"y":257,"width":831,"height":11}},{"id":"04cf9448-a827-4e42-a9e1-a9b3fe59074a","block_type":"box","text":"The dedicated team does not promote changes in corporate control or engage in shareholder activism.","page_number":233,"box":{"x":68,"y":272,"width":731,"height":11}},{"id":"ab6e6e74-2ed2-4faf-87dd-38ac5e5e9b1f","block_type":"box","text":"Other business relevant sustainability-related risks and opportunities","page_number":233,"box":{"x":69,"y":302,"width":503,"height":11}},{"id":"788edc21-26b0-4b54-8dfe-2d18b5f6a2a5","block_type":"box","text":"Climate risk and the transition to a low-carbon economy are interconnected with a number of other material","page_number":233,"box":{"x":102,"y":324,"width":762,"height":11}},{"id":"7f471ea1-5bdb-4d31-8177-906fd6c5d48f","block_type":"box","text":"sustainability-related risks and opportunities that may be relevant to a company’s business model and long-term","page_number":233,"box":{"x":69,"y":340,"width":802,"height":11}},{"id":"ba337a7f-ad4e-4cb0-bfba-05d9a160bf9d","block_type":"box","text":"financial performance. These include a company’s impacts or dependencies on natural capital and key","page_number":233,"box":{"x":68,"y":355,"width":734,"height":11}},{"id":"18ade894-fe6a-47a8-bcc9-2d23d326d77c","block_type":"box","text":"stakeholders.","page_number":233,"box":{"x":69,"y":370,"width":95,"height":9}},{"id":"adfa07e8-9dec-4de1-96d4-5cd2034331a9","block_type":"box","text":"26","page_number":233,"box":{"x":166,"y":370,"width":9,"height":5}},{"id":"1ebf60ee-e104-446c-8180-04656afc920a","block_type":"box","text":"In the context of these Guidelines, the dedicated team may engage companies to better understand","page_number":233,"box":{"x":182,"y":370,"width":710,"height":11}},{"id":"a231e3ea-5826-411a-910c-3ee251a41e59","block_type":"box","text":"how they are managing the impact on people (e.g., employees, suppliers, customers and communities) of any","page_number":233,"box":{"x":69,"y":385,"width":783,"height":11}},{"id":"12ada2a9-57e8-4fec-8691-c8258ba5341a","block_type":"box","text":"strategic or operational changes they are making in relation to their transition to a low-carbon economy. Similarly, the","page_number":233,"box":{"x":69,"y":400,"width":832,"height":11}},{"id":"41356f21-a4ea-4e31-a015-40de317fcb55","block_type":"box","text":"team may engage companies that face risks and opportunities related to land use and deforestation, access to fresh","page_number":233,"box":{"x":68,"y":415,"width":838,"height":11}},{"id":"a1a7b91e-46b5-405c-abb4-66fcda4b45a7","block_type":"box","text":"water, or the ability to secure scarce resources critical to the transition to a low-carbon economy.","page_number":233,"box":{"x":68,"y":430,"width":690,"height":11}},{"id":"23378584-5322-4903-bf29-a323f2fdaca5","block_type":"box","text":"26","page_number":233,"box":{"x":69,"y":475,"width":9,"height":4}},{"id":"43635bd6-8644-4ea6-9b3a-cb7d66193895","block_type":"box","text":"Engagement with companies on these issues is informed by BIS’ commentaries on natural capital, human capital","page_number":233,"box":{"x":84,"y":474,"width":807,"height":12}},{"id":"34df5e64-1aad-40ac-bfea-eb97eb5e7dee","block_type":"box","text":"management, and corporate human rights risks, December 2025.","page_number":233,"box":{"x":69,"y":490,"width":468,"height":11}},{"id":"3b344c90-ae4d-43be-b1f9-21c8448d69c1","block_type":"box","text":"BlackRock Investment Stewardship","page_number":233,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"51e6ea61-39a7-4d61-92bf-e2e3f9d0b54c","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 9","page_number":233,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"df0b9c17-5beb-4270-90a6-657944e33a88","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":233,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"cfef518f-5b4e-4ab4-a0ea-be1b7693c599","block_type":"box","text":"Appendix 1","page_number":234,"box":{"x":68,"y":45,"width":82,"height":11}},{"id":"96e03691-9e18-4979-b252-1a68dd148de9","block_type":"box","text":"Terminology","page_number":234,"box":{"x":68,"y":75,"width":87,"height":11}},{"id":"6cea7670-c75d-4dce-9e6e-739c0254b2d6","block_type":"box","text":"We understand the key concepts referred to within these Guidelines as follows:","page_number":234,"box":{"x":101,"y":98,"width":565,"height":11}},{"id":"a1b617eb-07e3-4d7b-9501-cddce7baac97","block_type":"box","text":"Climate risk:","page_number":234,"box":{"x":101,"y":120,"width":92,"height":9}},{"id":"b634ca9b-77dc-426c-86a8-f9e5d663018c","block_type":"box","text":"Includes physical risk, the increased risk to companies’ assets and activities caused by the direct","page_number":234,"box":{"x":200,"y":120,"width":698,"height":11}},{"id":"6b5ccc3c-7d68-4b11-a4d7-c69e6ef65d61","block_type":"box","text":"impact of changing weather patterns and natural catastrophes, and transition risk, the impact of the transition to a","page_number":234,"box":{"x":70,"y":135,"width":818,"height":12}},{"id":"a6850391-5ad6-49fb-a618-a4ec02eb899e","block_type":"box","text":"low-carbon economy on a company’s long-term profitability.","page_number":234,"box":{"x":70,"y":150,"width":416,"height":12}},{"id":"316361e8-8fe0-476c-a53b-cdd8330651c5","block_type":"box","text":"Transition to a low-carbon economy (“low-carbon transition”):","page_number":234,"box":{"x":101,"y":173,"width":449,"height":11}},{"id":"8145d974-c348-4e9e-9c3f-bb2d0c75d504","block_type":"box","text":"The global economic shift toward lower","page_number":234,"box":{"x":556,"y":173,"width":278,"height":11}},{"id":"1cd14e20-96bb-4304-a4ed-a68b75408564","block_type":"box","text":"emissions across many sectors and business models. The economic transformation is being driven by changes in","page_number":234,"box":{"x":69,"y":188,"width":811,"height":12}},{"id":"3e2252e4-9d05-4c41-abef-ee09cf2deac5","block_type":"box","text":"government policy, technology, and consumer and investor preferences, as well as the physical effects of climate","page_number":234,"box":{"x":68,"y":203,"width":807,"height":12}},{"id":"2937e1bd-781c-477f-8464-aef5adce328b","block_type":"box","text":"change (e.g., extreme weather), and can potentially have a material impact on clients’ investments and portfolios.","page_number":234,"box":{"x":69,"y":218,"width":812,"height":12}},{"id":"5e9c1016-c4c2-4c1f-b70a-e03253797e7c","block_type":"box","text":"Decarbonization:","page_number":234,"box":{"x":102,"y":241,"width":120,"height":9}},{"id":"5ecf040a-05f8-44c6-aa66-ed0c65eb49bb","block_type":"box","text":"the process of reducing or eliminating emissions of carbon dioxide (CO2) from human activity","page_number":234,"box":{"x":228,"y":241,"width":664,"height":11}},{"id":"d587c856-8f45-4343-a647-b6a7efd4a410","block_type":"box","text":"and removing carbon currently in the atmosphere. This can be carried out by countries, companies and even","page_number":234,"box":{"x":69,"y":257,"width":771,"height":11}},{"id":"20b26dbe-a745-422e-813d-10988282df4f","block_type":"box","text":"individual consumers. Sometimes the concept is understood to include the reduction and elimination of other GHG,","page_number":234,"box":{"x":70,"y":271,"width":820,"height":11}},{"id":"0ba71b75-a78e-439e-b3be-4ccdf56f895e","block_type":"box","text":"e.g., methane.","page_number":234,"box":{"x":69,"y":287,"width":102,"height":11}},{"id":"ebd9ce82-1ac3-4a84-89dc-2b2a0ea1c468","block_type":"box","text":"Climate-related risks and opportunities:","page_number":234,"box":{"x":101,"y":309,"width":289,"height":11}},{"id":"1b575a92-1c60-4262-88ec-39b77c21d0ad","block_type":"box","text":"The investment opportunities and risks associated with the transition","page_number":234,"box":{"x":396,"y":309,"width":495,"height":11}},{"id":"8f171d89-e670-4ac9-a951-a901f7d22f4c","block_type":"box","text":"to a low-carbon economy, including transition risks and opportunities and physical risks and opportunities in adapting","page_number":234,"box":{"x":68,"y":325,"width":838,"height":11}},{"id":"ef2bfca9-62e4-4f5e-ac22-6a202ccc01c4","block_type":"box","text":"to physical climate change.","page_number":234,"box":{"x":68,"y":340,"width":193,"height":11}},{"id":"3d34525d-7369-42a0-8106-44357c14f8b6","block_type":"box","text":"Climate-related transition plan:","page_number":234,"box":{"x":101,"y":362,"width":226,"height":11}},{"id":"50ea1739-b132-4578-8482-958f1f2166d8","block_type":"box","text":"“An aspect of an entity’s overall strategy that lays out the entity’s targets,","page_number":234,"box":{"x":334,"y":362,"width":525,"height":11}},{"id":"b4a92d4a-ef9f-4b56-a26b-5a8ffab0b050","block_type":"box","text":"actions or resources for its transition towards a lower-carbon economy, including actions such as reducing its","page_number":234,"box":{"x":69,"y":377,"width":778,"height":12}},{"id":"06aa7d1d-0cf0-41f4-b144-4077cee10b24","block_type":"box","text":"greenhouse gas emissions.”","page_number":234,"box":{"x":68,"y":393,"width":203,"height":11}},{"id":"166a2f59-5e84-43d8-b12d-0c7eb4d71f95","block_type":"box","text":"27","page_number":234,"box":{"x":273,"y":393,"width":9,"height":4}},{"id":"b42bd536-e831-4152-996e-a00ae59c0827","block_type":"box","text":"Science-based GHG emissions reduction targets:","page_number":234,"box":{"x":101,"y":415,"width":356,"height":11}},{"id":"861269fc-b8d4-4461-91f6-a79eb0a35a66","block_type":"box","text":"Targets that “","page_number":234,"box":{"x":463,"y":415,"width":96,"height":11}},{"id":"45495de0-4409-4a52-9b81-9e83c35a2001","block_type":"box","text":"are in line with what the latest climate science","page_number":234,"box":{"x":569,"y":415,"width":331,"height":9}},{"id":"ea3b5688-12c5-4cb8-9c79-c61a5394cdad","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":234,"box":{"x":69,"y":430,"width":822,"height":11}},{"id":"a3ca70c3-15eb-45cb-aebd-7e05ee52e5df","block_type":"box","text":"levels. Science-based targets give companies a clearly defined path to reduce GHG emissions in line with limiting","page_number":234,"box":{"x":70,"y":445,"width":806,"height":12}},{"id":"42488035-2e66-4de4-9597-29cfa8348e8e","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":234,"box":{"x":68,"y":460,"width":824,"height":12}},{"id":"cf87afdf-5f5c-46fe-a79a-8df0566edb25","block_type":"box","text":"with the Paris Agreement goals.”","page_number":234,"box":{"x":68,"y":476,"width":232,"height":11}},{"id":"37b8be09-9180-4c15-9baf-4b4a897d59c9","block_type":"box","text":"28","page_number":234,"box":{"x":302,"y":476,"width":9,"height":4}},{"id":"1106d31a-1a24-498d-925e-253d3ba2f939","block_type":"box","text":"Scope 1:","page_number":234,"box":{"x":101,"y":498,"width":63,"height":11}},{"id":"62c02d76-3000-43ec-850b-e5f18e5163db","block_type":"box","text":"Direct GHG emissions. Direct GHG emissions occur from sources that are owned or controlled by the","page_number":234,"box":{"x":172,"y":498,"width":718,"height":11}},{"id":"7089a89f-077c-4127-8ac9-3a8c183ef816","block_type":"box","text":"company, for example, emissions from combustion in owned or controlled boilers, furnaces, vehicles, etc.; emissions","page_number":234,"box":{"x":69,"y":513,"width":836,"height":11}},{"id":"93455b8e-d2d8-4444-a944-01457d8b1099","block_type":"box","text":"from chemical production in owned or controlled process equipment.","page_number":234,"box":{"x":68,"y":528,"width":489,"height":11}},{"id":"bdbf57ee-2a35-4339-a7bb-493ddf3f1a2d","block_type":"box","text":"29","page_number":234,"box":{"x":559,"y":529,"width":9,"height":4}},{"id":"027ee75f-6566-437c-8a73-f4627d9ea79c","block_type":"box","text":"Scope 2","page_number":234,"box":{"x":101,"y":551,"width":59,"height":11}},{"id":"e9a75235-ae98-43a8-a0a2-fc4ef9da3b8d","block_type":"box","text":": Electricity indirect GHG emissions Scope 2 accounts for GHG emissions from the generation of","page_number":234,"box":{"x":162,"y":551,"width":685,"height":11}},{"id":"40b6f73a-1dae-4211-95ae-a10ac6099c05","block_type":"box","text":"purchased electricity [steam, and heating/cooling] consumed by the company. [It] is defined as electricity [steam,","page_number":234,"box":{"x":70,"y":566,"width":807,"height":11}},{"id":"b00de2d0-dbe9-49c8-b057-bc2f943e4bb5","block_type":"box","text":"and heating/cooling] that is purchased or otherwise brought into the organizational boundary of the company.","page_number":234,"box":{"x":69,"y":581,"width":781,"height":12}},{"id":"14bb4071-4ccd-4381-91b3-68f79a0fbeac","block_type":"box","text":"30","page_number":234,"box":{"x":852,"y":582,"width":9,"height":4}},{"id":"a0df35d2-da68-4de6-8d30-76f9bd062869","block_type":"box","text":"Scope 3:","page_number":234,"box":{"x":101,"y":604,"width":63,"height":11}},{"id":"f71f1d2c-7cb5-4dcb-8a8b-0f24f5c87d25","block_type":"box","text":"Other indirect GHG emissions. Scope 3 is an optional reporting category that allows for the treatment","page_number":234,"box":{"x":171,"y":604,"width":725,"height":11}},{"id":"2a6f2cf9-f20b-4a5a-9191-a34042ee7eb4","block_type":"box","text":"of all other indirect emissions. Scope 3 emissions are a consequence of the activities of the company, but occur","page_number":234,"box":{"x":69,"y":619,"width":803,"height":11}},{"id":"7d6fd3db-5278-4c79-a01a-96dcbfda6f0b","block_type":"box","text":"from sources not owned or controlled by the company.","page_number":234,"box":{"x":68,"y":634,"width":386,"height":11}},{"id":"bc4da7c7-852e-4d98-bc20-bbd2c7744680","block_type":"box","text":"31","page_number":234,"box":{"x":456,"y":635,"width":9,"height":4}},{"id":"28ea8b16-a39d-4f3f-b2be-e8b134c5c6c5","block_type":"box","text":"27","page_number":234,"box":{"x":69,"y":679,"width":8,"height":4}},{"id":"c87a3a92-a40d-4ed1-9ee5-7bad03759b00","block_type":"box","text":"As defined by the International Financial Reporting Standards, “IFRS S2: Climate-related Disclosures,” June 2023..","page_number":234,"box":{"x":83,"y":679,"width":821,"height":11}},{"id":"4452ac5a-f697-430c-9dac-898aec2e3d4f","block_type":"box","text":"Several jurisdictions are basing their own transition plan disclosure frameworks on the IFRS S2 definition. We","page_number":234,"box":{"x":69,"y":694,"width":779,"height":11}},{"id":"e89dbb69-a794-4cd9-be51-a12dfbf2529d","block_type":"box","text":"anticipate transition plan disclosure becoming mandatory in an increasing number of jurisdictions over the near term.","page_number":234,"box":{"x":69,"y":709,"width":836,"height":11}},{"id":"c527b4a0-37f8-4388-a749-cceaad980bd0","block_type":"box","text":"28","page_number":234,"box":{"x":69,"y":727,"width":9,"height":4}},{"id":"0a25fe5c-e9bb-4151-8fc2-1872ac993a52","block_type":"box","text":"As defined by the Science Based Targets initiative (SBTi). SBTi “is a corporate climate action organization that","page_number":234,"box":{"x":83,"y":726,"width":785,"height":12}},{"id":"2fce4813-2e35-42dc-bb3e-279246a9c308","block_type":"box","text":"enables companies and financial institutions worldwide to play their part in combating the climate crisis. We develop","page_number":234,"box":{"x":69,"y":742,"width":831,"height":11}},{"id":"3190cf18-6f2b-4675-b73e-13165cac2252","block_type":"box","text":"standards, tools and guidance which allow companies to set greenhouse gas (GHG) emissions reductions targets in","page_number":234,"box":{"x":69,"y":757,"width":826,"height":11}},{"id":"13171e9b-8487-4aa1-885e-0f8db5b20d1e","block_type":"box","text":"line with what is needed to keep global heating below catastrophic levels and reach net-zero by 2050 at latest.”","page_number":234,"box":{"x":70,"y":772,"width":795,"height":11}},{"id":"f1dbdbc1-f3d2-442f-8df6-78c3d40beaa8","block_type":"box","text":"Source: Science Based Targets initiative, “About Us.” Websites accessed in December 2025.","page_number":234,"box":{"x":69,"y":787,"width":666,"height":11}},{"id":"f1a788ac-3a1b-43f1-83e6-7846aa33f129","block_type":"box","text":"29","page_number":234,"box":{"x":69,"y":805,"width":9,"height":4}},{"id":"c95c3beb-4acf-4aa9-a5c1-f5aa66a2ef84","block_type":"box","text":"Greenhouse Gas Protocol, “A Corporate Accounting and Reporting Standard,” Revised Edition.","page_number":234,"box":{"x":84,"y":805,"width":670,"height":11}},{"id":"131837cb-9150-494d-9b86-d3ba85d7d54c","block_type":"box","text":"30","page_number":234,"box":{"x":69,"y":823,"width":9,"height":4}},{"id":"05750c14-b9b9-4afa-baaf-129219608940","block_type":"box","text":"Greenhouse Gas Protocol, “A Corporate Accounting and Reporting Standard,” Revised Edition.","page_number":234,"box":{"x":84,"y":822,"width":670,"height":12}},{"id":"328b99c9-00de-4c45-8023-863ba2a1bb4d","block_type":"box","text":"31","page_number":234,"box":{"x":69,"y":840,"width":9,"height":5}},{"id":"4eced448-5f34-42c7-b118-c69baa62e4d3","block_type":"box","text":"Greenhouse Gas Protocol, “A Corporate Accounting and Reporting Standard,” Revised Edition.","page_number":234,"box":{"x":84,"y":840,"width":670,"height":11}},{"id":"1dbbb143-18dd-464b-84dc-e2afe4b87fe8","block_type":"box","text":"BlackRock Investment Stewardship","page_number":234,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"a05fd42d-a2d2-43df-8224-843cf9b30740","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 10","page_number":234,"box":{"x":500,"y":942,"width":409,"height":13}},{"id":"bc4b68f6-2c01-488b-ac84-1bb35f88b8e4","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":234,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3fef7ead-976a-4430-b600-359c62aa746a","block_type":"box","text":"Appendix 2","page_number":235,"box":{"x":68,"y":45,"width":82,"height":11}},{"id":"96fdc1fe-951c-47a2-834b-9a9cbc4caca5","block_type":"box","text":"Comparison of key differences between how the BIS’ Benchmark Policies considers climate-related risks,","page_number":235,"box":{"x":101,"y":67,"width":771,"height":11}},{"id":"4b85f062-c934-4a38-877f-58d975cdfa6b","block_type":"box","text":"where appropriate, and these Guidelines:","page_number":235,"box":{"x":68,"y":83,"width":299,"height":10}},{"id":"52ed91cc-cbca-435f-bf7e-6e9d7b1334e3","block_type":"box","text":"32","page_number":235,"box":{"x":368,"y":83,"width":10,"height":4}},{"id":"458c5dff-ee39-4d0c-bf58-a340a4649c3b","block_type":"box","text":"BIS Benchmark Policies","page_number":235,"box":{"x":302,"y":106,"width":174,"height":9}},{"id":"04c17bd7-bc2b-434b-8ea4-8333018c45f1","block_type":"box","text":"33","page_number":235,"box":{"x":477,"y":107,"width":9,"height":4}},{"id":"d7e9993f-0528-42e9-b496-212608961bcf","block_type":"box","text":"Decarbonization Guidelines","page_number":235,"box":{"x":643,"y":106,"width":196,"height":9}},{"id":"d78f2500-4769-4b9e-bfca-463d10650756","block_type":"box","text":"Key concepts","page_number":235,"box":{"x":75,"y":122,"width":98,"height":11}},{"id":"24915fdd-d2c0-4020-b547-40b755817a13","block_type":"box","text":"Focuses on financial performance","page_number":235,"box":{"x":232,"y":121,"width":240,"height":11}},{"id":"97c39a6b-35ac-4cbf-b8b2-f9ab52d1f362","block_type":"box","text":"and engages companies on","page_number":235,"box":{"x":231,"y":137,"width":195,"height":11}},{"id":"d2bfc52c-cbe4-45d0-8c95-1211992ad96a","block_type":"box","text":"climate and transition topics when","page_number":235,"box":{"x":231,"y":152,"width":244,"height":11}},{"id":"c326582d-970c-424c-82ef-92c3a12606d4","block_type":"box","text":"material to their business","page_number":235,"box":{"x":232,"y":167,"width":181,"height":9}},{"id":"51596b34-c4a8-4029-ba68-69b87dd8f3d0","block_type":"box","text":"Prioritizes the disclosure of how a","page_number":235,"box":{"x":232,"y":186,"width":239,"height":9}},{"id":"104fc82c-5cec-4166-a0d0-dcd3d33b7783","block_type":"box","text":"company is managing material","page_number":235,"box":{"x":231,"y":201,"width":215,"height":11}},{"id":"1c04436a-9108-453e-95b3-84d53c1c760d","block_type":"box","text":"climate and transition-related risks","page_number":235,"box":{"x":231,"y":216,"width":246,"height":9}},{"id":"b018c50c-3fd4-4c15-9be8-263a6ed1e147","block_type":"box","text":"and opportunities","page_number":235,"box":{"x":231,"y":231,"width":125,"height":11}},{"id":"f43bf72e-24ef-44dd-8ffb-be9a3de10beb","block_type":"box","text":"Considers both financial performance","page_number":235,"box":{"x":578,"y":121,"width":267,"height":11}},{"id":"9f40c76a-b065-4308-83b3-6f2d7cb1ba24","block_type":"box","text":"and decarbonization objectives","page_number":235,"box":{"x":578,"y":137,"width":218,"height":11}},{"id":"863ee17c-2d4c-4239-9b2d-4ce58ed031aa","block_type":"box","text":"consistent with funds’ and clients’","page_number":235,"box":{"x":577,"y":152,"width":244,"height":9}},{"id":"b1e6f28a-e671-4276-a3bd-dccc1687dd6f","block_type":"box","text":"investment objectives","page_number":235,"box":{"x":578,"y":167,"width":153,"height":11}},{"id":"d1c2180e-6c12-4b9c-b139-e0d66444c2cd","block_type":"box","text":"Assesses the alignment of a","page_number":235,"box":{"x":577,"y":186,"width":203,"height":11}},{"id":"e954ed73-8a0d-455c-88a7-2c0f88567af5","block_type":"box","text":"company’s business model","page_number":235,"box":{"x":577,"y":201,"width":193,"height":11}},{"id":"fba79ef5-8cba-4dd6-8ac8-ec40ba2f5ca5","block_type":"box","text":"with the ambition to limit global","page_number":235,"box":{"x":577,"y":216,"width":223,"height":11}},{"id":"4879e279-232f-4d60-a88f-0f697929c69a","block_type":"box","text":"average temperature rise to","page_number":235,"box":{"x":578,"y":231,"width":196,"height":11}},{"id":"e1b7a562-7fee-4992-b02c-e3e703654cfd","block_type":"box","text":"1.5°C above pre-industrial levels","page_number":235,"box":{"x":578,"y":246,"width":230,"height":11}},{"id":"8d2eea31-13fa-42d9-8f5e-3258fd9f7b41","block_type":"box","text":"Prioritized","page_number":235,"box":{"x":75,"y":269,"width":72,"height":9}},{"id":"78e1e707-ca14-48bb-aab3-8415c39eebf5","block_type":"box","text":"companies for","page_number":235,"box":{"x":74,"y":284,"width":103,"height":11}},{"id":"71199b3f-3b22-4b27-bd4d-d84041db2e91","block_type":"box","text":"climate-related","page_number":235,"box":{"x":74,"y":299,"width":109,"height":9}},{"id":"5f77d375-7990-47d5-92e8-0d09d50e949e","block_type":"box","text":"engagement","page_number":235,"box":{"x":74,"y":315,"width":90,"height":10}},{"id":"b010d4cd-8416-437d-9081-625499e459df","block_type":"box","text":"Largest Scope 1 and 2 GHG emitters Largest total value chain GHG","page_number":235,"box":{"x":232,"y":269,"width":557,"height":11}},{"id":"600d591c-71c5-43e0-9931-60789c77baed","block_type":"box","text":"emitters (Scope 1, 2, and 3)","page_number":235,"box":{"x":578,"y":284,"width":201,"height":11}},{"id":"5273142f-ff0b-485e-82bc-492d8b931c3b","block_type":"box","text":"Emissions","page_number":235,"box":{"x":75,"y":337,"width":72,"height":9}},{"id":"64d94d46-20a9-4604-b301-de2f299ce535","block_type":"box","text":"reporting","page_number":235,"box":{"x":75,"y":352,"width":66,"height":11}},{"id":"1988f55a-123d-4b27-bb7b-cc030f9cbf1a","block_type":"box","text":"Seeks reporting of Scope 1 and 2 Seeks reporting of Scope 1, 2 and","page_number":235,"box":{"x":231,"y":337,"width":592,"height":11}},{"id":"ce06d2b8-0110-4906-ad14-aff59522d013","block_type":"box","text":"significant 3","page_number":235,"box":{"x":578,"y":352,"width":86,"height":11}},{"id":"aaf2cdb3-f015-4867-bd97-e4a37f599f36","block_type":"box","text":"Emissions targets","page_number":235,"box":{"x":75,"y":375,"width":130,"height":11}},{"id":"badf32a3-b90b-471d-9515-43d40a640f58","block_type":"box","text":"& decarbonization","page_number":235,"box":{"x":74,"y":390,"width":131,"height":9}},{"id":"9b3453e4-e46d-4bd6-83c2-7c104bb4c932","block_type":"box","text":"efforts","page_number":235,"box":{"x":74,"y":405,"width":48,"height":9}},{"id":"3945d7c4-d79b-4031-b8e0-7acb2d633f93","block_type":"box","text":"Seeks the disclosure of Scope 1 and","page_number":235,"box":{"x":231,"y":375,"width":262,"height":11}},{"id":"abe30be6-c460-40bf-81c6-48af8c1d4c9a","block_type":"box","text":"2 targets","page_number":235,"box":{"x":231,"y":390,"width":64,"height":11}},{"id":"4f264cf6-bb87-4668-9f52-bb83a4c6610b","block_type":"box","text":"Seeks Scope 1 and 2 targets and","page_number":235,"box":{"x":578,"y":375,"width":239,"height":11}},{"id":"9e8d56cc-6a17-45fc-b5e6-26d89eb47d52","block_type":"box","text":"assesses decarbonization efforts","page_number":235,"box":{"x":578,"y":390,"width":238,"height":9}},{"id":"c5a7fd6c-2195-46bc-9c97-c1806a7e4881","block_type":"box","text":"Temperature &","page_number":235,"box":{"x":74,"y":428,"width":108,"height":11}},{"id":"4fa6bb65-04f2-40b5-9e5d-950dc51745da","block_type":"box","text":"scenario","page_number":235,"box":{"x":74,"y":443,"width":61,"height":9}},{"id":"f7b209c6-c46c-4487-adf5-b36ca2827320","block_type":"box","text":"alignment/","page_number":235,"box":{"x":74,"y":458,"width":82,"height":11}},{"id":"fae6da64-8a40-40b9-b546-e2d13bafc734","block_type":"box","text":"pathways","page_number":235,"box":{"x":75,"y":473,"width":68,"height":11}},{"id":"8c25c2f9-3553-4b8f-827f-5af876a92680","block_type":"box","text":"Seeks disclosure from companies","page_number":235,"box":{"x":231,"y":428,"width":241,"height":11}},{"id":"f9c99fe1-7138-4981-abac-3186f83c8db5","block_type":"box","text":"that identifies and discusses the","page_number":235,"box":{"x":231,"y":443,"width":233,"height":9}},{"id":"26d5d7d4-4bb0-43a6-84d7-686c1db2ed40","block_type":"box","text":"most plausible decarbonization","page_number":235,"box":{"x":232,"y":458,"width":219,"height":11}},{"id":"fe785a33-5b82-4c4f-afa5-8316218b0c47","block_type":"box","text":"pathway","page_number":235,"box":{"x":232,"y":473,"width":57,"height":11}},{"id":"90067a48-d4ab-463d-b097-466d5e64e773","block_type":"box","text":"Assesses temperature and","page_number":235,"box":{"x":577,"y":428,"width":191,"height":11}},{"id":"36a2c153-574c-4859-9288-44c5e0c7e49e","block_type":"box","text":"scenario alignment/pathways","page_number":235,"box":{"x":578,"y":443,"width":209,"height":11}},{"id":"0eec8874-ff01-4ec0-a27e-4ea3badc79db","block_type":"box","text":"to 1.5°C degrees","page_number":235,"box":{"x":577,"y":458,"width":121,"height":11}},{"id":"66554213-28b4-4352-8670-856a7571a83f","block_type":"box","text":"Science-based","page_number":235,"box":{"x":74,"y":496,"width":104,"height":9}},{"id":"7fa9e0d0-ed18-4a72-a781-d9fe63479bb4","block_type":"box","text":"targets","page_number":235,"box":{"x":74,"y":511,"width":53,"height":11}},{"id":"da3a552a-3d20-425f-a7bf-35e9b83226e9","block_type":"box","text":"commitments &","page_number":235,"box":{"x":74,"y":526,"width":116,"height":9}},{"id":"3b8c0246-5a05-4d87-9868-3edd7e4afae9","block_type":"box","text":"verifications","page_number":235,"box":{"x":74,"y":541,"width":89,"height":9}},{"id":"96d4ebd6-8c71-4f2d-8f4a-703101a60cce","block_type":"box","text":"Disclosure topic but not vote","page_number":235,"box":{"x":232,"y":496,"width":203,"height":11}},{"id":"e584cb64-2ea9-4f43-a0a0-d212e61db3d3","block_type":"box","text":"escalation criteria","page_number":235,"box":{"x":231,"y":511,"width":126,"height":9}},{"id":"6a81fe46-45d1-4a12-89a7-99e55e8662b3","block_type":"box","text":"Seeks science-based targets and","page_number":235,"box":{"x":578,"y":496,"width":235,"height":11}},{"id":"22e0274d-211a-4876-9071-0e2dc8069bbc","block_type":"box","text":"verifications where possible; may","page_number":235,"box":{"x":577,"y":511,"width":237,"height":11}},{"id":"e0ad425d-1fd5-49de-9101-a2f7bbe43146","block_type":"box","text":"take voting action where absent","page_number":235,"box":{"x":577,"y":526,"width":227,"height":11}},{"id":"14a0b357-f741-46e1-a45f-fda6ab5fce59","block_type":"box","text":"Company’s role in","page_number":235,"box":{"x":74,"y":564,"width":130,"height":11}},{"id":"bfcc5914-12db-4421-914e-7b79339820e8","block_type":"box","text":"the transition","page_number":235,"box":{"x":74,"y":579,"width":98,"height":9}},{"id":"de572860-4b2e-4f3e-b275-bfe69024e477","block_type":"box","text":"Disclosure topic but not vote","page_number":235,"box":{"x":232,"y":564,"width":203,"height":11}},{"id":"27d456ab-9739-40ce-82ad-3fbc8d744ab7","block_type":"box","text":"escalation criteria","page_number":235,"box":{"x":231,"y":579,"width":126,"height":9}},{"id":"a8700347-83ce-44b6-8e71-a1799ad2777d","block_type":"box","text":"Assesses activities benefitting from","page_number":235,"box":{"x":577,"y":564,"width":254,"height":11}},{"id":"4293286d-93d7-4c43-9808-8fd8b3b9e457","block_type":"box","text":"and/or contributing to the transition","page_number":235,"box":{"x":578,"y":579,"width":254,"height":11}},{"id":"cf402707-d01b-4d9d-b26e-8074cd75ae8f","block_type":"box","text":"to a low-carbon economy","page_number":235,"box":{"x":577,"y":594,"width":176,"height":11}},{"id":"000a3662-ee3b-47b0-b2e2-0dd2693ed6ac","block_type":"box","text":"Shareholder","page_number":235,"box":{"x":74,"y":617,"width":87,"height":9}},{"id":"716e908f-560c-40af-89a5-f2ca89810655","block_type":"box","text":"proposals","page_number":235,"box":{"x":75,"y":632,"width":69,"height":11}},{"id":"6dfdcbf6-6176-4048-897b-d573f7e78b73","block_type":"box","text":"Case-by-case approach with focus","page_number":235,"box":{"x":231,"y":617,"width":240,"height":11}},{"id":"e820317e-e780-46b1-98ce-994d69775c98","block_type":"box","text":"on implications for long-term","page_number":235,"box":{"x":231,"y":632,"width":202,"height":11}},{"id":"bd2d6ac1-71f3-4500-a588-eddff5de0c4c","block_type":"box","text":"financial value creation","page_number":235,"box":{"x":231,"y":647,"width":163,"height":9}},{"id":"899fe7f0-e40a-43db-97db-6ed28dad0cb8","block_type":"box","text":"No support for shareholder","page_number":235,"box":{"x":232,"y":666,"width":192,"height":11}},{"id":"140e471f-6033-4c95-aa47-a7be396408b9","block_type":"box","text":"proposals that seek to direct","page_number":235,"box":{"x":232,"y":681,"width":205,"height":11}},{"id":"2677cfbd-aa38-4c2f-808c-d8452fab4d69","block_type":"box","text":"management strategy","page_number":235,"box":{"x":232,"y":697,"width":153,"height":10}},{"id":"a6576ab5-405e-4328-9016-426663889fed","block_type":"box","text":"Case-by-case approach with","page_number":235,"box":{"x":578,"y":617,"width":195,"height":11}},{"id":"fd5e2a40-75c3-4c51-9954-94548569f925","block_type":"box","text":"further consideration given to","page_number":235,"box":{"x":577,"y":632,"width":209,"height":11}},{"id":"d1716f3a-5ca9-4357-8989-9f67804f1887","block_type":"box","text":"decarbonization objectives in","page_number":235,"box":{"x":578,"y":647,"width":204,"height":11}},{"id":"93c67f44-2760-41ec-9cc4-b08a3884335e","block_type":"box","text":"addition to financial performance","page_number":235,"box":{"x":578,"y":662,"width":235,"height":11}},{"id":"42b2dab2-143f-4be0-8bf5-0127c0dbb4e1","block_type":"box","text":"No support for shareholder","page_number":235,"box":{"x":578,"y":681,"width":192,"height":11}},{"id":"8204af3a-7336-4882-bfc8-ad55e9da81bd","block_type":"box","text":"proposals that seek to direct","page_number":235,"box":{"x":578,"y":696,"width":205,"height":11}},{"id":"3521f6da-64c1-4c12-821a-b50135d37f90","block_type":"box","text":"management strategy","page_number":235,"box":{"x":578,"y":712,"width":154,"height":10}},{"id":"99c8e64b-5651-49fe-adc3-fd48ef2bcbc7","block_type":"box","text":"32","page_number":235,"box":{"x":69,"y":750,"width":9,"height":5}},{"id":"016027f7-2eb7-4008-a66c-ed07a4dc0ee9","block_type":"box","text":"There may be some regional variations in voting under these Guidelines in light of company circumstances, policy","page_number":235,"box":{"x":83,"y":750,"width":809,"height":11}},{"id":"b5eb1e4e-ea1e-4e62-82f4-13e6bfeb6506","block_type":"box","text":"requirements in a particular market or a country’s Nationally Defined Contributions, amongst other things.","page_number":235,"box":{"x":69,"y":765,"width":755,"height":11}},{"id":"7456270b-b0a3-4705-ad77-c151d8199745","block_type":"box","text":"33","page_number":235,"box":{"x":69,"y":783,"width":9,"height":4}},{"id":"c6c355c0-b27c-4e53-a575-ee9b071533fd","block_type":"box","text":"The BIS Global Principles, regional voting guidelines, and Engagement Priorities (collectively, the BIS Benchmark","page_number":235,"box":{"x":83,"y":783,"width":798,"height":11}},{"id":"161f623c-2b71-4ac4-9cad-deef691506c4","block_type":"box","text":"Policies) set out the core elements of corporate governance that guide our investment stewardship program. The","page_number":235,"box":{"x":69,"y":798,"width":803,"height":11}},{"id":"cbf57eac-2ef2-4c5c-89bf-73d8d1b87701","block_type":"box","text":"Benchmark Policies apply to clients’ assets invested through index equity strategies, take a financial materiality","page_number":235,"box":{"x":70,"y":813,"width":800,"height":11}},{"id":"ad38d16c-ec37-4667-9239-0c16abb82910","block_type":"box","text":"based approach, and are focused solely on advancing clients’ long-term financial interests.","page_number":235,"box":{"x":69,"y":828,"width":648,"height":11}},{"id":"c48537ee-958a-40a0-8d20-154dd357030f","block_type":"box","text":"BlackRock Investment Stewardship","page_number":235,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"fb36db87-a47f-433f-aed4-d58160233d76","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 11","page_number":235,"box":{"x":500,"y":942,"width":409,"height":13}},{"id":"1d696d5f-725d-4b06-a7e3-924a21d6d03a","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":235,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5b7f6887-7ad7-40c2-96c1-367672defbf1","block_type":"box","text":"Want to know more?","page_number":236,"box":{"x":68,"y":731,"width":152,"height":9}},{"id":"26f93e3a-a83d-465e-9fa2-39574af13a9c","block_type":"box","text":"blackrock.com/stewardship | contactstewardship@blackrock.com","page_number":236,"box":{"x":69,"y":761,"width":464,"height":13}},{"id":"c7934248-3b92-4db9-90b3-42ff269ce8f2","block_type":"box","text":"This document is provided for information and educational purposes only. Investing involves risk, including the loss of","page_number":236,"box":{"x":68,"y":792,"width":839,"height":11}},{"id":"2b894da7-caa7-4fe3-90b8-943ab1da02a4","block_type":"box","text":"principal.","page_number":236,"box":{"x":70,"y":807,"width":62,"height":11}},{"id":"7f2f649c-b862-4668-9917-8cf0f6ed7850","block_type":"box","text":"Prepared by BlackRock, Inc.","page_number":236,"box":{"x":69,"y":852,"width":196,"height":11}},{"id":"cdba4794-c364-4d60-a587-74cad9652ad0","block_type":"box","text":"©2025 BlackRock, Inc. All rights reserved.","page_number":236,"box":{"x":69,"y":883,"width":303,"height":11}},{"id":"e60b8b81-f703-410a-832a-085cae9c2f4c","block_type":"box","text":"BLACKROCK","page_number":236,"box":{"x":379,"y":883,"width":92,"height":8}},{"id":"08c165d5-810b-4efb-83ae-3c1184f2250e","block_type":"box","text":"is a trademark of BlackRock, Inc., or its subsidiaries in the","page_number":236,"box":{"x":478,"y":882,"width":417,"height":11}},{"id":"2ba14fcc-bc12-49f5-8bee-38a4279990ab","block_type":"box","text":"United States and elsewhere. All other trademarks are those of their respective owners.","page_number":236,"box":{"x":70,"y":898,"width":624,"height":11}},{"id":"e9355ecb-855f-44d9-9a21-3b2d698e8590","block_type":"box","text":"BlackRock Investment Stewardship","page_number":236,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"ebdd624b-11b7-424e-b01c-06889e517a80","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 12","page_number":236,"box":{"x":500,"y":942,"width":409,"height":13}},{"id":"f470cc9f-6103-4f8a-b175-7b21ab3277ab","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":236,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d4d5be47-ce82-4cde-8d14-03410be51190","block_type":"box","text":"[This page intentionally left blank]","page_number":237,"box":{"x":370,"y":489,"width":238,"height":12}},{"id":"a90797e4-9168-4709-b83c-d86f61be5773","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":237,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"55c3a11f-c112-4394-94b4-402e8e17b0fd","block_type":"box","text":"[This page intentionally left blank]","page_number":238,"box":{"x":370,"y":489,"width":238,"height":12}},{"id":"4809a44e-9406-4dea-bd57-5cb051aa8093","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":238,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2941f0f7-a933-44d3-be88-5485f323e2e8","block_type":"box","text":"SAI-GDP-0926","page_number":239,"box":{"x":69,"y":943,"width":99,"height":9}},{"id":"9a1ceba0-b756-4a7e-9867-dc3203e417cf","block_type":"box","text":"BNM1026U-6032633-19203495","page_number":239,"box":{"x":647,"y":981,"width":171,"height":7}}],"unit":"per_mille","page_width":[{"value":594,"pages":[1,2,3,4,5,6,7]},{"value":612,"pages":[8,9,10,11,12,13,14,15,16,17,18,19,20,21,22,23,24,25,26,27,28,29,30,31,32,33,34,35,36,37,38,39,40,41,42,43,44,45,46,47,48,49,50,51,52,53,54,55,56,57,58,59,60,61,62,63,64,65,66,67,68,69,70,71,72,73,74,75,76,77,78,79,80,81,82,83,84,85,86,87,88,89,90,91,92,93,94,95,96,97,98,99,100,101,102,103,104,105,106,107,108,109,110,111,112,113,114,115,116,117,118,119,120,121,122,123,124,125,126,127,128,129,130,131,132,133,134,135,136,137,138,139,140,141,142,143,144,145,146,147,148,149,150,151,152,153,154,155,156,157,158,159,160,161,162,163,164,165,166,167,168,169,170,171,172,173,174,175,176,177,178,179,180,181,182,183,184,185,186,187,188,189,190,191,192,193,194,195,196,197,198,199,200,201,202,203,204,205,206,207,208,209,210,211,212,213,214,215,216,217,218,219,220,221,222,223,224,225,226,227,228,229,230,231,232,233,234,235,236,237,238,239]}],"page_height":[{"value":774,"pages":[1,2,3,4,5,6,7]},{"value":792,"pages":[8,9,10,11,12,13,14,15,16,17,18,19,20,21,22,23,24,25,26,27,28,29,30,31,32,33,34,35,36,37,38,39,40,41,42,43,44,45,46,47,48,49,50,51,52,53,54,55,56,57,58,59,60,61,62,63,64,65,66,67,68,69,70,71,72,73,74,75,76,77,78,79,80,81,82,83,84,85,86,87,88,89,90,91,92,93,94,95,96,97,98,99,100,101,102,103,104,105,106,107,108,109,110,111,112,113,114,115,116,117,118,119,120,121,122,123,124,125,126,127,128,129,130,131,132,133,134,135,136,137,138,139,140,141,142,143,144,145,146,147,148,149,150,151,152,153,154,155,156,157,158,159,160,161,162,163,164,165,166,167,168,169,170,171,172,173,174,175,176,177,178,179,180,181,182,183,184,185,186,187,188,189,190,191,192,193,194,195,196,197,198,199,200,201,202,203,204,205,206,207,208,209,210,211,212,213,214,215,216,217,218,219,220,221,222,223,224,225,226,227,228,229,230,231,232,233,234,235,236,237,238,239]}],"attributes":{"chunk_type":"page_range","start_page":1,"end_page":239}},"source":{"type":"Model","id":"github:dorsalhub/pdf-extractor","version":"0.5.0","execution_id":"1d7acf95-7bc4-4aed-aca2-7978a93a5b7c"},"user_id":1000002,"date_created":"2026-10-19T22:31:53.466000Z","date_modified":"2026-10-19T22:31:53.466000Z","private":false}