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The policy also will be interpreted to give","page_number":15,"box":{"x":70,"y":876,"width":817,"height":11}},{"id":"b8966575-e6fd-4356-b50b-d04996660660","block_type":"box","text":"broad authority to the Fund as to how to classify issuers within or among industries.","page_number":15,"box":{"x":69,"y":891,"width":597,"height":12}},{"id":"d256dbd1-e13b-47bf-a98c-947dfbfef0e2","block_type":"box","text":"I-6","page_number":15,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"5ecef0af-16ec-40da-ae42-347a31b7ecd3","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":15,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4dbaa79f-e71f-441a-bf66-e7c718f4f82c","block_type":"box","text":"Unless otherwise indicated or with respect to policies adopted pursuant to Rule 35d-1 adopted under the","page_number":16,"box":{"x":102,"y":45,"width":750,"height":11}},{"id":"2ce9dfdb-1229-4f7b-945d-0164ab536d1f","block_type":"box","text":"Investment Company Act, all limitations under the Fund’s fundamental or non-fundamental investment restrictions","page_number":16,"box":{"x":70,"y":60,"width":810,"height":11}},{"id":"aea9a5ad-9d6a-4470-b461-0a64f1c721f8","block_type":"box","text":"apply only at the time that a transaction is under taken. Any change in the percentage of the Fund’s assets invested","page_number":16,"box":{"x":69,"y":75,"width":824,"height":11}},{"id":"24af3971-a6c8-4d3e-bec9-56ea52c0519d","block_type":"box","text":"in cer tain securities or other instruments resulting from market fluctuations or other changes in the Fund’s total","page_number":16,"box":{"x":70,"y":90,"width":797,"height":11}},{"id":"bccd9548-0a5c-4ec1-a085-c7f1231f4ee7","block_type":"box","text":"assets will not require the Fund to dispose of an investment until BlackRock determines that it is practicable to sell","page_number":16,"box":{"x":69,"y":105,"width":823,"height":11}},{"id":"81610f77-9fc5-4b80-881f-8ec2764d5277","block_type":"box","text":"or close out the investment without undue market or tax consequences.","page_number":16,"box":{"x":69,"y":120,"width":511,"height":11}},{"id":"4cd45ca2-30da-4b8f-8854-8275e247247a","block_type":"box","text":"III. Information on Directors and Officers","page_number":16,"box":{"x":69,"y":151,"width":294,"height":8}},{"id":"ec8ec946-b198-4726-bafe-7ca0b80ad16f","block_type":"box","text":"The Board consists of fifteen individuals (each, a “Director”), thir teen of whom are not “interested persons” of","page_number":16,"box":{"x":101,"y":173,"width":790,"height":11}},{"id":"89b9cd8e-43d6-43ba-9663-3457d49a5133","block_type":"box","text":"the Corporation as defined in the Investment Company Act (the “Independent Directors”). The registered investment","page_number":16,"box":{"x":68,"y":188,"width":828,"height":12}},{"id":"fb6d4e15-73db-4a96-a38e-0fe2bd820403","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":203,"width":837,"height":12}},{"id":"55ed99cc-22f8-4d2d-ba9f-a407548acd52","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":219,"width":793,"height":11}},{"id":"8c49ed6c-a9b7-4ebe-bdbd-13e6456729f0","block_type":"box","text":"Complex”). The Corporation is included in the BlackRock Fund Complex referred to as the BlackRock Multi-Asset","page_number":16,"box":{"x":69,"y":234,"width":799,"height":11}},{"id":"d802e57a-a475-417e-a536-95e1336767ce","block_type":"box","text":"Complex. The Directors also oversee as board members the operations of the other open-end registered investment","page_number":16,"box":{"x":69,"y":249,"width":827,"height":11}},{"id":"b9d2a478-ca9c-44cd-bad5-04841c041536","block_type":"box","text":"companies included in the BlackRock Multi-Asset Complex.","page_number":16,"box":{"x":69,"y":264,"width":418,"height":11}},{"id":"d907c7fc-928a-4840-b1db-06fcbf8848d4","block_type":"box","text":"The Board has overall responsibility for the oversight of the Corporation and the Fund. The Chair of the Board is","page_number":16,"box":{"x":101,"y":286,"width":794,"height":12}},{"id":"2a5a26a0-7dee-4110-ab4e-baf01c5592ab","block_type":"box","text":"an Independent Director, and the Chair of each Board committee (each, a “Committee”) is an Independent Director.","page_number":16,"box":{"x":69,"y":302,"width":823,"height":11}},{"id":"a804ce9e-e72c-4d55-962b-ea85499a1e9e","block_type":"box","text":"The Board has five standing Committees: an Audit Committee, a Governance and Nominating Committee, a","page_number":16,"box":{"x":68,"y":317,"width":766,"height":11}},{"id":"7c8d2622-e09b-4e5b-aea0-87abb4ad3e3e","block_type":"box","text":"Compliance Committee, a Per formance Oversight Committee and an Ad Hoc Topics Committee. The role of the Chair","page_number":16,"box":{"x":69,"y":332,"width":831,"height":11}},{"id":"6d29f242-2f14-4c84-81a8-055f64d1f39a","block_type":"box","text":"of the Board is to preside at all meetings of the Board and to act as a liaison with service providers, officers,","page_number":16,"box":{"x":69,"y":347,"width":778,"height":11}},{"id":"c715721f-73e1-4ac3-b99e-c78228bccf5f","block_type":"box","text":"attorneys and other Directors generally between meetings. The Chair of each Committee per forms a similar role with","page_number":16,"box":{"x":69,"y":362,"width":830,"height":11}},{"id":"938e48d2-2b15-45ba-8b1f-82d46689d83e","block_type":"box","text":"respect to the Committee. The Chair of the Board or the Chair of a Committee may also per form such other functions","page_number":16,"box":{"x":69,"y":377,"width":836,"height":11}},{"id":"d947887c-3644-4c92-a03f-4c5c57db9ed5","block_type":"box","text":"as may be delegated by the Board or the Committee from time to time. The Independent Directors meet regularly","page_number":16,"box":{"x":69,"y":392,"width":805,"height":12}},{"id":"77ad9a73-2afc-4b5c-a28e-44e7a8dc3cd8","block_type":"box","text":"outside the presence of Fund management, in executive session or with other service providers to the Fund. The","page_number":16,"box":{"x":69,"y":407,"width":802,"height":12}},{"id":"cfae13ca-82c8-4db3-a990-6a09e4315179","block_type":"box","text":"Board has regular meetings five times a year, and may hold special meetings if required before its next regular","page_number":16,"box":{"x":70,"y":423,"width":788,"height":11}},{"id":"d5190e1d-ed5f-4541-88e2-273e80b74d26","block_type":"box","text":"meeting. Each Committee meets regularly to conduct the oversight functions delegated to that Committee by the","page_number":16,"box":{"x":69,"y":438,"width":802,"height":11}},{"id":"d02041a6-f288-4a18-9c6e-924bcd7e389b","block_type":"box","text":"Board and repor ts its findings to the Board. The Board and each standing Committee conduct annual assessments","page_number":16,"box":{"x":70,"y":453,"width":821,"height":11}},{"id":"e0a898a5-994f-43cf-a860-5608a2e31708","block_type":"box","text":"of their oversight function and structure. The Board has determined that the Board’s leadership structure is","page_number":16,"box":{"x":69,"y":468,"width":767,"height":11}},{"id":"7835bcdf-f73a-4a9a-8a49-0e6b563f51e6","block_type":"box","text":"appropriate because it allows the Board to exercise independent judgment over management and to allocate areas of","page_number":16,"box":{"x":69,"y":483,"width":839,"height":11}},{"id":"01704a3c-3f3d-413a-9335-f5c8bbc6533c","block_type":"box","text":"responsibility among Committees and the full Board to enhance effective oversight.","page_number":16,"box":{"x":69,"y":498,"width":593,"height":11}},{"id":"48b2271d-382b-4eaa-b930-22520242a0ad","block_type":"box","text":"The Board has engaged the Manager to manage the Fund on a day-to-day basis. The Board is responsible for","page_number":16,"box":{"x":101,"y":521,"width":777,"height":11}},{"id":"6d335239-abd0-45e8-b0fa-b21e7c156122","block_type":"box","text":"overseeing the Manager, other service providers, the operations of the Fund and associated risks in accordance with","page_number":16,"box":{"x":69,"y":536,"width":832,"height":11}},{"id":"f5c29500-92c3-4b2d-a5ff-0ee80a050dd4","block_type":"box","text":"the provisions of the Investment Company Act, state law, other applicable laws, the Corporation’s char ter, and the","page_number":16,"box":{"x":68,"y":551,"width":815,"height":11}},{"id":"164c3bfc-b7fd-4daf-a3b2-1c7d0237a157","block_type":"box","text":"Fund’s investment objective and strategies. The Board reviews, on an ongoing basis, the Fund’s per formance,","page_number":16,"box":{"x":70,"y":566,"width":784,"height":11}},{"id":"e9ae0778-67d6-4366-ae90-94565ed6e5a7","block_type":"box","text":"operations and investment strategies and techniques. The Board also conducts reviews of the Manager and its role","page_number":16,"box":{"x":69,"y":581,"width":823,"height":12}},{"id":"9984044c-376b-4ffb-a3dd-25c9f4bd7d98","block_type":"box","text":"in running the operations of the Fund.","page_number":16,"box":{"x":70,"y":596,"width":266,"height":12}},{"id":"7056a1fa-4b74-4a3d-bf93-bdd6be43753f","block_type":"box","text":"Day-to-day risk management with respect to the Fund is the responsibility of the Manager or of sub-advisers or","page_number":16,"box":{"x":102,"y":619,"width":785,"height":11}},{"id":"b6966dbe-0fcc-42b5-9da4-f6cdbfb0b221","block_type":"box","text":"other service providers (depending on the nature of the risk), subject to the supervision of the Manager. The Fund is","page_number":16,"box":{"x":69,"y":634,"width":828,"height":12}},{"id":"bfe7eac8-00ac-46d0-b322-08dd851b7be9","block_type":"box","text":"subject to a number of risks, including investment, compliance, operational and valuation risks, among others. While","page_number":16,"box":{"x":69,"y":649,"width":832,"height":12}},{"id":"5582506f-ce5e-4d9a-9063-ca434eaa2e74","block_type":"box","text":"there are a number of risk management functions per formed by the Manager and the sub-advisers or other service","page_number":16,"box":{"x":68,"y":664,"width":820,"height":12}},{"id":"a142f333-bbc2-4ed4-a040-11a238dba43b","block_type":"box","text":"providers, as applicable, it is not possible to eliminate all of the risks applicable to the Fund. Risk oversight forms","page_number":16,"box":{"x":70,"y":680,"width":811,"height":11}},{"id":"811e3dd0-efe5-4146-ba1b-3a69255fdfad","block_type":"box","text":"par t of the Board’s general oversight of the Fund and is addressed as par t of various Board and Committee","page_number":16,"box":{"x":70,"y":695,"width":767,"height":11}},{"id":"570cd2ec-c557-4cf3-8ffe-ae8076469e6c","block_type":"box","text":"activities. The Board, directly or through a Committee, also reviews repor ts from, among others, management, the","page_number":16,"box":{"x":69,"y":710,"width":815,"height":11}},{"id":"5533c599-1ef9-47a6-81e4-69b6cc60f1bc","block_type":"box","text":"independent registered public accounting firm for the Fund, sub-advisers and internal auditors for the investment","page_number":16,"box":{"x":70,"y":725,"width":803,"height":11}},{"id":"93a01604-e97f-416f-b108-42c16ad5719e","block_type":"box","text":"adviser or its affiliates, as appropriate, regarding risks faced by the Fund and management’s or the service provider’s","page_number":16,"box":{"x":69,"y":740,"width":840,"height":11}},{"id":"d10b5b78-0a65-4e36-8640-00bd49d21fa1","block_type":"box","text":"risk functions. The Committee system facilitates the timely and efficient consideration of matters by the Directors,","page_number":16,"box":{"x":69,"y":755,"width":814,"height":11}},{"id":"975a08e6-1c1b-4f24-8611-0bb769eccd82","block_type":"box","text":"and facilitates effective oversight of compliance with legal and regulatory requirements and of the Fund’s activities","page_number":16,"box":{"x":69,"y":770,"width":817,"height":12}},{"id":"f11b26fa-bad6-46a5-880f-7c769788e95b","block_type":"box","text":"and associated risks. The Board has appointed a Chief Compliance Officer, who oversees the implementation and","page_number":16,"box":{"x":69,"y":785,"width":812,"height":11}},{"id":"a8c807db-23ec-4e4c-a7f0-c6f2a2aa5229","block_type":"box","text":"testing of the Corporation’s compliance program and repor ts to the Board regarding compliance matters for the Fund","page_number":16,"box":{"x":68,"y":801,"width":834,"height":11}},{"id":"0015278a-da2e-4156-bfc9-82082c8a2aa0","block_type":"box","text":"and its service providers. The Independent Directors have engaged independent legal counsel to assist them in","page_number":16,"box":{"x":69,"y":816,"width":794,"height":11}},{"id":"4f06a46f-5f3d-44c0-b240-12dfbccba504","block_type":"box","text":"per forming their oversight responsibilities.","page_number":16,"box":{"x":70,"y":831,"width":299,"height":11}},{"id":"e030c334-ed43-4a61-a91f-f02ac60717be","block_type":"box","text":"Audit Committee.","page_number":16,"box":{"x":101,"y":854,"width":122,"height":8}},{"id":"23d380e0-eaaf-47d4-82f8-894a38fc7dd7","block_type":"box","text":"The members of the Audit Committee (the “Audit Committee”) are Henry R. Keizer (Chair), Neil","page_number":16,"box":{"x":229,"y":853,"width":673,"height":12}},{"id":"65b5c1d1-38f1-4802-918a-9b01bb2f554f","block_type":"box","text":"A. Cotty, Jeffrey Jarczyk, Lori Richards, Kenneth L. Urish and Claire A. Walton, all of whom are Independent Directors.","page_number":16,"box":{"x":68,"y":869,"width":834,"height":11}},{"id":"e53272d5-3022-4bdb-849b-a750e621067d","block_type":"box","text":"The principal responsibilities of the Audit Committee are to approve, and recommend to the full Board for approval,","page_number":16,"box":{"x":68,"y":884,"width":820,"height":11}},{"id":"cd276882-ffc7-49d0-b115-5d1b1f0a6ee8","block_type":"box","text":"the selection, retention, termination and compensation of the Fund’s independent registered public accounting firm","page_number":16,"box":{"x":68,"y":899,"width":823,"height":11}},{"id":"1c316a35-3a42-4fc5-979d-d6cf436a1ec5","block_type":"box","text":"I-7","page_number":16,"box":{"x":481,"y":943,"width":16,"height":9}},{"id":"f008dd76-e190-4386-b901-097996be209a","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":16,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3630e91f-0980-486a-86b7-3772932ecdf5","block_type":"box","text":"(the “Independent Registered Public Accounting Firm”) and to oversee the Independent Registered Public Accounting","page_number":17,"box":{"x":69,"y":45,"width":830,"height":11}},{"id":"c65887b8-dfd6-43e1-9afc-986d5c5e3ced","block_type":"box","text":"Firm’s work. The Audit Committee’s responsibilities include, without limitation, to (1) evaluate the qualifications and","page_number":17,"box":{"x":70,"y":60,"width":825,"height":11}},{"id":"9ef57b47-c551-4f18-9e99-5ef91dabfd68","block_type":"box","text":"independence of the Independent Registered Public Accounting Firm; (2) approve all audit engagement terms and","page_number":17,"box":{"x":70,"y":75,"width":807,"height":11}},{"id":"2a55e723-d602-44d7-a1fb-9334b9b6b46c","block_type":"box","text":"fees for the Fund; (3) review the conduct and results of each independent audit of the Fund’s annual financial","page_number":17,"box":{"x":68,"y":90,"width":781,"height":11}},{"id":"d9c40c50-193f-4a97-90bb-075eda46c1fe","block_type":"box","text":"statements; (4) review any issues raised by the Independent Registered Public Accounting Firm or Fund management","page_number":17,"box":{"x":69,"y":105,"width":834,"height":11}},{"id":"65aa7f41-7cea-4f5b-9710-4c94b1770bf1","block_type":"box","text":"regarding the accounting or financial repor ting policies and practices of the Fund and the internal controls of the Fund","page_number":17,"box":{"x":69,"y":120,"width":838,"height":12}},{"id":"d480bd36-4772-4a5f-9371-d5440532a172","block_type":"box","text":"and cer tain service providers; (5) oversee the per formance of the Fund’s Independent Registered Public Accounting","page_number":17,"box":{"x":69,"y":135,"width":825,"height":12}},{"id":"111cf94d-df4d-4459-bc92-e152e4fb07d4","block_type":"box","text":"Firm; (6) review and discuss with management and the Fund’s Independent Registered Public Accounting Firm the","page_number":17,"box":{"x":70,"y":151,"width":809,"height":11}},{"id":"0c60eca6-7207-4dc1-b61f-20fd3a83e56f","block_type":"box","text":"per formance and findings of the Fund’s internal auditors; (7) discuss with Fund management its policies regarding","page_number":17,"box":{"x":70,"y":166,"width":815,"height":11}},{"id":"cdcfc341-8dc1-4e23-b703-967962e4f144","block_type":"box","text":"risk assessment and risk management as such matters relate to the Fund’s financial repor ting and controls;","page_number":17,"box":{"x":69,"y":181,"width":774,"height":11}},{"id":"ff5f0377-778d-4b27-a1fc-9e9301f31ff3","block_type":"box","text":"(8) resolve any disagreements between Fund management and the Independent Registered Public Accounting Firm","page_number":17,"box":{"x":69,"y":196,"width":815,"height":11}},{"id":"86d628cd-fd77-45b2-bdfb-e6e027821687","block_type":"box","text":"regarding financial repor ting; and (9) under take such other duties and responsibilities as may from time to time be","page_number":17,"box":{"x":69,"y":211,"width":819,"height":11}},{"id":"1c3ff729-12f6-484e-8434-1ba5c2851f47","block_type":"box","text":"delegated by the Board to the Audit Committee. The Board has adopted a written char ter for the Audit Committee.","page_number":17,"box":{"x":69,"y":226,"width":812,"height":11}},{"id":"5951653e-6cef-4a82-a248-584308c23ca3","block_type":"box","text":"During the fiscal year ended May 31, 2026, the Audit Committee met four times.","page_number":17,"box":{"x":70,"y":241,"width":574,"height":11}},{"id":"d4b287be-ef86-4a37-b623-858be2e482f1","block_type":"box","text":"Governance and Nominating Committee.","page_number":17,"box":{"x":102,"y":264,"width":286,"height":11}},{"id":"f8315768-0da3-4ad5-8815-ae66d164c1fe","block_type":"box","text":"The members of the Governance and Nominating Committee (the","page_number":17,"box":{"x":394,"y":264,"width":464,"height":11}},{"id":"b3e7a5f1-5664-439c-869c-5bc06fd58d75","block_type":"box","text":"“Governance Committee”) are Cynthia A. Montgomery (Chair), Christopher J. Ailman, Susan J. Car ter, Collette Chilton,","page_number":17,"box":{"x":70,"y":279,"width":838,"height":11}},{"id":"2aa6ac34-f744-4df7-8a40-e0ae7d25a6c6","block_type":"box","text":"Henry R. Keizer and Marc D. Stern, all of whom are Independent Directors. The principal responsibilities of the","page_number":17,"box":{"x":70,"y":294,"width":786,"height":11}},{"id":"cf1e6e42-8bca-4ce2-aa65-11617c9a0502","block_type":"box","text":"Governance Committee are to (1) identify individuals qualified to serve as Independent Directors of the Corporation","page_number":17,"box":{"x":69,"y":309,"width":821,"height":11}},{"id":"7814f9ca-becd-4bc6-a5b0-c7724ea84857","block_type":"box","text":"and recommend Independent Director nominees for election by shareholders or appointment by the Board; (2) advise","page_number":17,"box":{"x":69,"y":324,"width":835,"height":11}},{"id":"ead18399-bb69-4dc2-a6e4-8b45710e4800","block_type":"box","text":"the Board with respect to Board composition, procedures and committees (other than the Audit Committee);","page_number":17,"box":{"x":68,"y":340,"width":772,"height":10}},{"id":"7473072b-4a8d-455a-9f6c-81fd31357a75","block_type":"box","text":"(3) oversee periodic self-assessments of the Board and committees of the Board (other than the Audit Committee);","page_number":17,"box":{"x":69,"y":355,"width":820,"height":11}},{"id":"4c40fbe6-7645-40a8-bc17-190dd2e78a07","block_type":"box","text":"(4) review and make recommendations regarding Independent Director compensation; (5) monitor corporate","page_number":17,"box":{"x":69,"y":370,"width":768,"height":11}},{"id":"65a97b08-eb11-4f17-aaf6-cc255f510b46","block_type":"box","text":"governance matters and develop appropriate recommendations to the Board; (6) act as the administrative committee","page_number":17,"box":{"x":68,"y":385,"width":837,"height":11}},{"id":"93ccb464-2991-4603-91a8-3b664a69c996","block_type":"box","text":"with respect to Board policies and procedures, committee policies and procedures (other than the Audit Committee)","page_number":17,"box":{"x":68,"y":400,"width":827,"height":11}},{"id":"6d5f570f-2784-4d3c-87d1-137aeac77ad7","block_type":"box","text":"and codes of ethics as they relate to Independent Directors; and (7) under take such other duties and responsibilities","page_number":17,"box":{"x":69,"y":415,"width":836,"height":11}},{"id":"45a784bf-baa4-43db-82cf-5f44008f0896","block_type":"box","text":"as may from time to time be delegated by the Board to the Governance Committee. The Governance Committee may","page_number":17,"box":{"x":69,"y":430,"width":831,"height":11}},{"id":"a9dd2c6a-f0d9-4c22-9a09-91741fdeb603","block_type":"box","text":"consider nominations for Directors made by the Fund’s shareholders as it deems appropriate. Under the","page_number":17,"box":{"x":69,"y":445,"width":744,"height":11}},{"id":"a249ec5f-0e00-4371-84a9-b72d73118eea","block_type":"box","text":"Corporation’s Amended and Restated Bylaws (“Bylaws”), shareholders must follow cer tain procedures to nominate a","page_number":17,"box":{"x":69,"y":460,"width":832,"height":12}},{"id":"ab246c35-f80b-448c-8f89-bbb77b9dc240","block_type":"box","text":"person for election as a Director at a shareholder meeting at which Directors are to be elected. Under these advance","page_number":17,"box":{"x":70,"y":475,"width":833,"height":12}},{"id":"aa15c704-0c82-4b90-a5a2-d4158c7bdb0f","block_type":"box","text":"notice procedures, notice of the proposed nominee to the Secretary of the Corporation must be delivered to or","page_number":17,"box":{"x":69,"y":491,"width":789,"height":11}},{"id":"8f6b77d7-e083-499e-8857-52cea2756c38","block_type":"box","text":"mailed and received at the principal executive offices of the Corporation not later than the close of business on the","page_number":17,"box":{"x":69,"y":506,"width":822,"height":11}},{"id":"5f8281d9-4db4-485b-a5c3-cc687b8665e3","block_type":"box","text":"fifth day following the day on which notice of the date of the meeting was mailed or public disclosure of the date of","page_number":17,"box":{"x":68,"y":521,"width":819,"height":11}},{"id":"ad5ee8e8-0b03-49ea-ba63-d0d13b7d575e","block_type":"box","text":"the meeting was made, whichever first occurs. The Corporation’s Bylaws provide that notice of a proposed","page_number":17,"box":{"x":68,"y":536,"width":758,"height":11}},{"id":"90e77184-e1a4-4225-87a5-fca799f6693a","block_type":"box","text":"nomination must include cer tain information about the shareholder and the nominee, as well as cer tain other","page_number":17,"box":{"x":69,"y":551,"width":782,"height":11}},{"id":"1f51c837-5902-44c1-9a03-c604315438df","block_type":"box","text":"information, including a written consent of the proposed nominee to serve if elected. Reference is made to the","page_number":17,"box":{"x":70,"y":566,"width":789,"height":11}},{"id":"08ef35f0-3a20-4ee2-96db-23281f8b9e27","block_type":"box","text":"Corporation’s Bylaws for more details. The Board has adopted a written char ter for the Governance Committee.","page_number":17,"box":{"x":69,"y":581,"width":792,"height":11}},{"id":"06420809-0bb3-4e32-af85-80e4e40247e0","block_type":"box","text":"During the fiscal year ended May 31, 2026, the Governance Committee met ten times.","page_number":17,"box":{"x":70,"y":596,"width":617,"height":12}},{"id":"234d0712-7b4c-40c7-b7e9-32374ae2c52e","block_type":"box","text":"Compliance Committee.","page_number":17,"box":{"x":102,"y":619,"width":168,"height":11}},{"id":"4fa8fcd7-a479-4c23-ad38-cb430fd4ba07","block_type":"box","text":"The members of the Compliance Committee (the “Compliance Committee”) are Claire A.","page_number":17,"box":{"x":276,"y":619,"width":629,"height":11}},{"id":"3714a319-23be-486a-a23a-345a7996dba8","block_type":"box","text":"Walton (Chair), Jeffrey Jarczyk, Cynthia A. Montgomery, Donald C. Opatrny, Lori Richards and Kenneth L. Urish, all of","page_number":17,"box":{"x":68,"y":634,"width":828,"height":12}},{"id":"3562328f-4c85-47fe-b112-593847621f60","block_type":"box","text":"whom are Independent Directors. The Compliance Committee’s purpose is to assist the Board in fulfilling its","page_number":17,"box":{"x":68,"y":649,"width":773,"height":12}},{"id":"0ed010f4-00b8-499c-b29f-b83d51aafd3b","block_type":"box","text":"responsibility to oversee regulatory and fiduciary compliance matters involving the Corporation, the fund-related","page_number":17,"box":{"x":69,"y":664,"width":794,"height":12}},{"id":"dcde74fc-0380-46ae-8261-05cfa4bce9a6","block_type":"box","text":"activities of BlackRock and any sub-adviser and the Corporation’s third-par ty service providers. The Compliance","page_number":17,"box":{"x":69,"y":680,"width":793,"height":11}},{"id":"368ef1ce-affd-483f-ae92-2359497dd9f9","block_type":"box","text":"Committee’s responsibilities include, without limitation, to (1) oversee the compliance policies and procedures of the","page_number":17,"box":{"x":69,"y":695,"width":835,"height":11}},{"id":"330d87d8-847a-4324-8696-6d7c5c035d9a","block_type":"box","text":"Corporation and its service providers and recommend changes or additions to such policies and procedures;","page_number":17,"box":{"x":69,"y":710,"width":773,"height":11}},{"id":"1c3c4409-e7b3-4eb5-ae8c-842ec16f73d0","block_type":"box","text":"(2) review information on and, where appropriate, recommend policies concerning the Corporation’s compliance with","page_number":17,"box":{"x":69,"y":725,"width":829,"height":11}},{"id":"d48bf171-c51d-41b5-b8f1-70f9b745075e","block_type":"box","text":"applicable law; (3) review repor ts from, oversee the annual per formance review of, and make cer tain","page_number":17,"box":{"x":69,"y":740,"width":719,"height":11}},{"id":"05a0a5c4-68f0-4fa1-b408-14a0cca97cba","block_type":"box","text":"recommendations and determinations regarding the Corporation’s Chief Compliance Officer (the “CCO”), including","page_number":17,"box":{"x":69,"y":755,"width":814,"height":11}},{"id":"cb8110fe-8278-475d-88ba-35869e2eeb47","block_type":"box","text":"determining the amount and structure of the CCO’s compensation and recommending such amount and structure to","page_number":17,"box":{"x":69,"y":770,"width":829,"height":12}},{"id":"20f55130-fd76-42d5-9dcb-13607c7811b5","block_type":"box","text":"the full Board for approval and ratification; and (4) under take such other duties and responsibilities as may from time","page_number":17,"box":{"x":68,"y":785,"width":839,"height":12}},{"id":"cb58137b-2338-4226-a27a-caf0c64eb745","block_type":"box","text":"to time be delegated by the Board to the Compliance Committee. The Board has adopted a written char ter for the","page_number":17,"box":{"x":68,"y":801,"width":810,"height":11}},{"id":"b2a1433c-5c26-42a7-9b95-9d72e455fcfb","block_type":"box","text":"Compliance Committee. During the fiscal year ended May 31, 2026, the Compliance Committee met four times.","page_number":17,"box":{"x":69,"y":816,"width":798,"height":11}},{"id":"3d0de6c0-c6e6-417f-bf02-1f97b5d444ff","block_type":"box","text":"Per formance Oversight Committee.","page_number":17,"box":{"x":102,"y":838,"width":248,"height":12}},{"id":"0fa3b8d7-75e9-4c13-9610-51dc71b13050","block_type":"box","text":"The members of the Per formance Oversight Committee (the “Per formance","page_number":17,"box":{"x":356,"y":838,"width":531,"height":12}},{"id":"fb8bcf5d-3097-47e2-b2f3-24e265fae0f4","block_type":"box","text":"Oversight Committee”) are Donald C. Opatrny (Chair), Christopher J. Ailman, Susan J. Car ter, Collette Chilton, Neil A.","page_number":17,"box":{"x":69,"y":854,"width":829,"height":11}},{"id":"93bce09d-29b3-4fb9-a1c2-f81a11e144b5","block_type":"box","text":"Cotty and Marc D. Stern, all of whom are Independent Directors. The Per formance Oversight Committee’s purpose is","page_number":17,"box":{"x":69,"y":869,"width":832,"height":11}},{"id":"7c28fb56-8c47-4b28-bd1b-f593c0480a38","block_type":"box","text":"to assist the Board in fulfilling its responsibility to oversee the Fund’s investment per formance relative to its agreed","page_number":17,"box":{"x":68,"y":884,"width":832,"height":11}},{"id":"a9e645a2-d3c4-485c-afa6-12cfa1d1497f","block_type":"box","text":"upon per formance objectives and to assist the Independent Directors in their consideration of investment advisory","page_number":17,"box":{"x":69,"y":899,"width":818,"height":11}},{"id":"9f3f30ee-0909-4427-a8ac-8fd1689c45c0","block_type":"box","text":"I-8","page_number":17,"box":{"x":481,"y":943,"width":17,"height":9}},{"id":"28b32cc3-5e94-40a9-bf4e-2a9567fd1709","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":17,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"87f044bb-023f-429b-bf77-9c04598a9551","block_type":"box","text":"agreements. The Per formance Oversight Committee’s responsibilities include, without limitation, to (1) review","page_number":18,"box":{"x":69,"y":45,"width":782,"height":11}},{"id":"07b9cf05-e7f2-4f5f-bb88-18a17f8a3bf4","block_type":"box","text":"information on, and make recommendations to the full Board in respect of, the Fund’s investment objective, policies","page_number":18,"box":{"x":70,"y":60,"width":829,"height":11}},{"id":"5f85392a-a2e4-4402-840d-84c3ceb00983","block_type":"box","text":"and practices; (2) review information on the Fund’s investment per formance; (3) review information on appropriate","page_number":18,"box":{"x":69,"y":75,"width":816,"height":11}},{"id":"ddbf3d96-0264-4cca-956a-a3d9527d0cd0","block_type":"box","text":"benchmarks and competitive universes and unusual or exceptional investment matters; (4) review personnel and","page_number":18,"box":{"x":69,"y":90,"width":803,"height":11}},{"id":"6a6509c7-bb8a-4164-bfd1-c6a931d22c4a","block_type":"box","text":"other resources devoted to management of the Fund and evaluate the nature and quality of information furnished to","page_number":18,"box":{"x":69,"y":105,"width":827,"height":11}},{"id":"cbec10bd-5922-4cca-a34d-79ab8488c019","block_type":"box","text":"the Per formance Oversight Committee; (5) recommend any required action regarding changes in fundamental and","page_number":18,"box":{"x":68,"y":120,"width":811,"height":12}},{"id":"e098ace2-a43f-4464-9556-47f36be25ba1","block_type":"box","text":"non-fundamental investment policies and restrictions, fund mergers or liquidations; (6) request and review","page_number":18,"box":{"x":69,"y":135,"width":757,"height":12}},{"id":"d9e44ee5-a084-4f23-b795-679a1c973075","block_type":"box","text":"information on the nature, extent and quality of services provided to the shareholders; (7) make recommendations to","page_number":18,"box":{"x":70,"y":150,"width":835,"height":12}},{"id":"13730ea2-36ff-484b-ae62-c300761709c8","block_type":"box","text":"the Board concerning the approval or renewal of investment advisory agreements; and (8) under take such other","page_number":18,"box":{"x":68,"y":166,"width":800,"height":11}},{"id":"cb14311f-f021-4baf-8a77-c885ce1bfdee","block_type":"box","text":"duties and responsibilities as may from time to time be delegated by the Board to the Per formance Oversight","page_number":18,"box":{"x":69,"y":181,"width":780,"height":11}},{"id":"8250567c-9cde-4bed-9d72-1cbfd0c5084d","block_type":"box","text":"Committee. The Board has adopted a written char ter for the Per formance Oversight Committee. During the fiscal year","page_number":18,"box":{"x":69,"y":196,"width":838,"height":11}},{"id":"94c39fc5-2adb-4d67-be3e-b0e917c41295","block_type":"box","text":"ended May 31, 2026, the Per formance Oversight Committee met five times.","page_number":18,"box":{"x":69,"y":211,"width":544,"height":11}},{"id":"67888fb9-a744-4cc3-ad57-30cdcfd87586","block_type":"box","text":"Ad Hoc Topics Committee.","page_number":18,"box":{"x":101,"y":234,"width":186,"height":11}},{"id":"0d14d155-a34f-4058-b8f1-a7c8739e54ab","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":234,"width":598,"height":11}},{"id":"8fe9038c-a425-4e8a-a6c1-10c3c678eecb","block_type":"box","text":"Mark Stalnecker (Chair) and Claire A. Walton, both of whom are Independent Directors, and John M. Perlowski, who","page_number":18,"box":{"x":70,"y":249,"width":819,"height":11}},{"id":"77062781-8158-4c66-9dee-9e5b22756f5e","block_type":"box","text":"serves as an interested Director. The principal responsibilities of the Ad Hoc Topics Committee are to (1) act on","page_number":18,"box":{"x":69,"y":264,"width":796,"height":11}},{"id":"ac8116cc-fe7b-4c0e-85c4-fc5f5c1f3edf","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":279,"width":788,"height":11}},{"id":"472e4db8-514b-4ebd-a81e-59048c5059d7","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":294,"width":813,"height":11}},{"id":"cfef03b0-740d-42b9-9562-51755a10e0c3","block_type":"box","text":"Topics Committee by the Board. The Board has adopted a written char ter for the Ad Hoc Topics Committee. During","page_number":18,"box":{"x":68,"y":309,"width":816,"height":11}},{"id":"ce9aeafb-7157-485a-993e-ef0e70a8132f","block_type":"box","text":"the fiscal year ended May 31, 2026, the Ad Hoc Topics Committee did not meet.","page_number":18,"box":{"x":68,"y":324,"width":575,"height":11}},{"id":"3914a08f-7b68-47d4-931f-9c9ca788527e","block_type":"box","text":"The Governance Committee has adopted a statement of policy that describes the experience, qualifications,","page_number":18,"box":{"x":101,"y":347,"width":771,"height":11}},{"id":"efca7346-5b88-4945-9f67-e80d319cfd1a","block_type":"box","text":"skills and attributes that are necessary and desirable for potential Independent Director candidates (the “Statement","page_number":18,"box":{"x":69,"y":362,"width":830,"height":11}},{"id":"dedff682-845e-4713-85ea-6700fa6011fd","block_type":"box","text":"of Policy”). The Board believes that each Independent Director satisfied, at the time he or she was initially elected or","page_number":18,"box":{"x":69,"y":377,"width":833,"height":11}},{"id":"b765b516-25a1-4815-97d7-9f9552a44b30","block_type":"box","text":"appointed a Director, and continues to satisfy, the standards contemplated by the Statement of Policy. Fur thermore,","page_number":18,"box":{"x":69,"y":392,"width":827,"height":12}},{"id":"e938c90b-7642-4ab1-9eae-8d3c46e2611c","block_type":"box","text":"in determining that a par ticular Independent Director was and continues to be qualified to serve as a Director, the","page_number":18,"box":{"x":70,"y":407,"width":811,"height":12}},{"id":"6ba4d647-9200-4e88-a997-f8a15ee99a4c","block_type":"box","text":"Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that,","page_number":18,"box":{"x":70,"y":423,"width":787,"height":11}},{"id":"e0e5d027-7583-4388-b4ba-c602bb09be75","block_type":"box","text":"collectively, the Independent Directors have balanced and diverse experience, skills, attributes and qualifications,","page_number":18,"box":{"x":69,"y":438,"width":807,"height":11}},{"id":"d35eef03-1b3b-4e9c-a866-7c24f9d858be","block_type":"box","text":"which allow the Board to operate effectively in governing the Corporation and protecting the interests of shareholders.","page_number":18,"box":{"x":68,"y":453,"width":840,"height":11}},{"id":"c300a453-e03f-433a-937f-564117cd1f92","block_type":"box","text":"Among the attributes common to all Independent Directors are their ability to review critically, evaluate, question and","page_number":18,"box":{"x":68,"y":468,"width":832,"height":11}},{"id":"d68c5f57-d2bf-49e7-b0d9-d87c6ed60c66","block_type":"box","text":"discuss information provided to them, to interact effectively with the Fund’s investment adviser, sub-advisers, other","page_number":18,"box":{"x":69,"y":483,"width":823,"height":11}},{"id":"2d38be4b-1ffa-4275-86d1-f521e2b99885","block_type":"box","text":"service providers, counsel and the Independent Registered Public Accounting Firm, and to exercise effective","page_number":18,"box":{"x":69,"y":498,"width":771,"height":11}},{"id":"59554718-6586-4743-845e-6c867445b000","block_type":"box","text":"business judgment in the per formance of their duties as Directors.","page_number":18,"box":{"x":69,"y":513,"width":475,"height":12}},{"id":"1995a45a-232f-4ca9-a48b-6fa653952757","block_type":"box","text":"Each Director’s ability to per form his or her duties effectively is evidenced by his or her educational background","page_number":18,"box":{"x":102,"y":536,"width":794,"height":11}},{"id":"97bd42ff-dabb-4ffd-942f-fc85d5acf6e5","block_type":"box","text":"or professional training; business, consulting, public service or academic positions; experience from service as a","page_number":18,"box":{"x":69,"y":551,"width":807,"height":11}},{"id":"169de510-ec68-4102-8ffd-b101d51dff1f","block_type":"box","text":"board member of the Corporation and the other funds in the BlackRock Fund Complexes (and any predecessor","page_number":18,"box":{"x":69,"y":566,"width":787,"height":11}},{"id":"eb7a391b-b7af-4596-89b7-35728de789a4","block_type":"box","text":"funds), other investment funds, public companies, non-profit entities or other organizations; ongoing commitment to","page_number":18,"box":{"x":68,"y":581,"width":827,"height":12}},{"id":"80513657-12ce-4429-b61b-3b5e30d265c4","block_type":"box","text":"and par ticipation in Board and Committee meetings, as well as his or her leadership of standing and","page_number":18,"box":{"x":69,"y":596,"width":717,"height":12}},{"id":"94fe1841-352e-4354-befb-7448f3fbc42b","block_type":"box","text":"ad hoc","page_number":18,"box":{"x":793,"y":597,"width":47,"height":8}},{"id":"1608d9f3-bc7c-4597-bc5a-5f45403aef3f","block_type":"box","text":"committees throughout the years; or other relevant life experiences.","page_number":18,"box":{"x":69,"y":612,"width":483,"height":11}},{"id":"da4ce9f3-98c2-4073-a346-1f0aaf450c3f","block_type":"box","text":"The table below discusses some of the experiences, qualifications and skills of each of the Directors that","page_number":18,"box":{"x":101,"y":634,"width":754,"height":11}},{"id":"6b5a8654-ec17-408e-bb8b-5cbad30a6093","block_type":"box","text":"suppor t the conclusion that each Director should serve on the Board.","page_number":18,"box":{"x":69,"y":650,"width":494,"height":10}},{"id":"b010fc6f-4a17-4e89-aeb8-9a67b1315de5","block_type":"box","text":"Directors Experience, Qualifications and Skills","page_number":18,"box":{"x":69,"y":678,"width":408,"height":8}},{"id":"d71dcf65-bc8c-45e6-8159-444c92245232","block_type":"box","text":"Independent Directors","page_number":18,"box":{"x":70,"y":694,"width":156,"height":11}},{"id":"c1db0326-d52e-4f1f-b3f1-fac1ed9fc024","block_type":"box","text":"Christopher J. Ailman Christopher Ailman has more than 30 years of experience in the financial services","page_number":18,"box":{"x":69,"y":709,"width":781,"height":11}},{"id":"88ea38bd-d539-4ec3-8b28-44ab7d3b949c","block_type":"box","text":"industry, including most recently serving as Chief Investment Officer of the California","page_number":18,"box":{"x":265,"y":724,"width":604,"height":12}},{"id":"ff76ee8c-837e-4ed6-924d-3bdb4d8714ea","block_type":"box","text":"State Teachers Retirement System (CalSTRS) from 2000 to June 2024 where he led its","page_number":18,"box":{"x":265,"y":739,"width":623,"height":12}},{"id":"f19cd6a8-3476-40c0-97f9-543a2b325aa7","block_type":"box","text":"investment program. Mr. Ailman currently is a principal at Ailman Advisers. In addition, he","page_number":18,"box":{"x":265,"y":755,"width":637,"height":11}},{"id":"688e3892-6baa-4ee0-9444-bc84fe7b386c","block_type":"box","text":"has held various roles in the industry, including as member and chair of the asset owner","page_number":18,"box":{"x":265,"y":770,"width":631,"height":11}},{"id":"c4211f23-83fd-40e4-adb8-eb29d58731f1","block_type":"box","text":"committee of the Kroner Center for Financial Research, chairman of the Nor th American","page_number":18,"box":{"x":264,"y":785,"width":626,"height":10}},{"id":"08b85952-536d-4548-8f24-9fda139c333f","block_type":"box","text":"Chapter of the 300 Club of Global CIOs, and co-chair of the Milken Global Capital Markets","page_number":18,"box":{"x":265,"y":800,"width":639,"height":11}},{"id":"dd19ef7b-6328-4f6a-bdf1-73e235d3867b","block_type":"box","text":"Advisory Council. 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(“CCI”), a","page_number":19,"box":{"x":265,"y":81,"width":604,"height":11}},{"id":"703feeca-64bb-46b9-bc22-d7e885f40737","block_type":"box","text":"registered investment adviser focused on non-profit investors, from 1997 to 2013, Chief","page_number":19,"box":{"x":265,"y":96,"width":632,"height":11}},{"id":"ddb3b37e-1cdd-4fcd-97e9-d23494a55304","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":111,"width":562,"height":9}},{"id":"22ee06c4-5f95-4f57-94d6-f1740bbff7d1","block_type":"box","text":"Ms. Car ter also served as director of the Pacific Pension Institute from 2014 to 2018,","page_number":19,"box":{"x":265,"y":126,"width":616,"height":10}},{"id":"86a1a7f6-3648-4df4-985b-ceb049655f40","block_type":"box","text":"trustee to the Financial Accounting Foundation from 2017 to 2021, Advisory Board","page_number":19,"box":{"x":264,"y":141,"width":591,"height":11}},{"id":"1a8fead3-b374-4b76-a421-ed03c7d363f2","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":156,"width":641,"height":11}},{"id":"c9b0ed13-c0f5-44dd-8dc4-3c303b5eeb15","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":171,"width":638,"height":12}},{"id":"6fc3c90e-ccdb-424d-b2af-7613094385e5","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":186,"width":584,"height":12}},{"id":"9223449d-90e5-4182-8294-e59217107790","block_type":"box","text":"Member thereof from 2018 to 2022, and Practitioner Advisory Board Member for Private","page_number":19,"box":{"x":265,"y":201,"width":630,"height":12}},{"id":"8d8b8965-0b5f-4224-9e28-c98eee2c1f32","block_type":"box","text":"Capital Research Institute (“PCRI”) from 2017 to 2024. She currently serves as Member","page_number":19,"box":{"x":265,"y":217,"width":634,"height":11}},{"id":"98640aeb-723a-4e86-b841-a62fcc2332cd","block_type":"box","text":"of the President’s Counsel for Commonfund. These positions have provided her with","page_number":19,"box":{"x":265,"y":232,"width":599,"height":11}},{"id":"ad07252e-5da7-4c38-bd85-3b8d1de03478","block_type":"box","text":"insight and perspective on the markets and the economy.","page_number":19,"box":{"x":265,"y":247,"width":407,"height":11}},{"id":"6b21cc8b-1996-4668-ba36-2ca94a328b5a","block_type":"box","text":"Collette Chilton Collette Chilton has over 20 years of experience in investment management. 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These positions have provided her with insight and","page_number":19,"box":{"x":265,"y":330,"width":595,"height":11}},{"id":"ed09375a-8156-4eda-9583-6fff0892ab94","block_type":"box","text":"perspective on the markets and the economy.","page_number":19,"box":{"x":265,"y":345,"width":323,"height":11}},{"id":"d74f42f7-ec35-4c02-9912-83ea6aabc5a9","block_type":"box","text":"Neil A. Cotty Neil A. Cotty has more than 30 years of experience in the financial services industry,","page_number":19,"box":{"x":70,"y":368,"width":798,"height":11}},{"id":"29fc7d7e-eb5c-4ace-87c0-1f8bf6944728","block_type":"box","text":"including 19 years at Bank of America Corporation and its affiliates, where he served, at","page_number":19,"box":{"x":265,"y":383,"width":631,"height":11}},{"id":"a5e864f2-5d81-4bc6-94e5-7c7bddf2ffa7","block_type":"box","text":"different times, as the Chief Financial Officer of various businesses including Investment","page_number":19,"box":{"x":265,"y":398,"width":633,"height":11}},{"id":"6d31d063-1c90-4db2-8263-e854ff0c9120","block_type":"box","text":"Banking, Global Markets, Wealth Management and Consumer and also served ten years","page_number":19,"box":{"x":265,"y":413,"width":628,"height":11}},{"id":"f81b316c-1953-4041-b4c1-95b1a3697dfe","block_type":"box","text":"as the Chief Accounting Officer for Bank of America Corporation. 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Prior to working at Fidelity, Mr. Jarczyk was a","page_number":19,"box":{"x":265,"y":527,"width":607,"height":11}},{"id":"5d4fe5c2-eae8-4eff-8824-e8e670df0be0","block_type":"box","text":"par tner at Deloitte and Ar thur Andersen for approximately 17 years. These positions have","page_number":19,"box":{"x":265,"y":542,"width":638,"height":11}},{"id":"3e4e5835-c1bf-42b1-88b0-ee27f307dac8","block_type":"box","text":"allowed him to work extensively with audit and risk committees and company executives","page_number":19,"box":{"x":265,"y":557,"width":626,"height":11}},{"id":"0e75788e-cabf-4ef8-808b-f7fc44bd8a6d","block_type":"box","text":"helping to identify, manage and mitigate risks for financial services companies.","page_number":19,"box":{"x":265,"y":572,"width":563,"height":11}},{"id":"ed2a934b-1453-49e0-b0b3-f8650068995f","block_type":"box","text":"Mr. Jarczyk also served as a consultant to the Independent Directors prior to becoming an","page_number":19,"box":{"x":265,"y":587,"width":641,"height":11}},{"id":"fa83f802-ba00-4b3c-ac75-22f799a634c9","block_type":"box","text":"Independent Director. Mr. Jarczyk has been determined by the Audit Committee to be an","page_number":19,"box":{"x":265,"y":602,"width":627,"height":11}},{"id":"a3d28425-b62b-420a-beaf-7123b14293f1","block_type":"box","text":"audit committee financial exper t, as such term is defined in the applicable Commission","page_number":19,"box":{"x":265,"y":617,"width":623,"height":11}},{"id":"245e8617-e795-440e-9f42-ef7a4c2c89c8","block_type":"box","text":"rules.","page_number":19,"box":{"x":265,"y":633,"width":38,"height":8}},{"id":"0fb3facb-4f5e-4036-b4b7-b51c9c06a546","block_type":"box","text":"Henry R. Keizer Henry R. Keizer brings over 40 years of executive, financial, operational, strategic and","page_number":19,"box":{"x":70,"y":655,"width":806,"height":11}},{"id":"84ac6767-8569-4e5b-b686-4ff13444f0d6","block_type":"box","text":"global exper tise gained through his 35 year career at KPMG, a global professional","page_number":19,"box":{"x":264,"y":670,"width":584,"height":11}},{"id":"669e1390-f040-41a5-9f46-854e2426893b","block_type":"box","text":"services organization and by his service as a director to both publicly and privately held","page_number":19,"box":{"x":265,"y":686,"width":622,"height":11}},{"id":"77b389fc-cc02-44ee-83ad-6b66e50bc9fd","block_type":"box","text":"organizations. He has extensive experience with issues facing complex, global companies","page_number":19,"box":{"x":265,"y":700,"width":638,"height":12}},{"id":"b8b00fdf-a752-435c-89a1-57ac935dc148","block_type":"box","text":"and exper tise in financial repor ting, accounting, auditing, risk management, and","page_number":19,"box":{"x":265,"y":715,"width":570,"height":12}},{"id":"860244ff-9eba-49ab-95b2-2585045518fc","block_type":"box","text":"regulatory affairs for such companies. Mr. Keizer’s experience also includes service as an","page_number":19,"box":{"x":265,"y":731,"width":642,"height":11}},{"id":"a557e291-281c-4371-acaa-f249a34c29b7","block_type":"box","text":"audit committee chair to both publicly and privately held organizations across numerous","page_number":19,"box":{"x":265,"y":746,"width":626,"height":11}},{"id":"f42f8809-b4da-424e-95de-ea98200eab4f","block_type":"box","text":"industries including professional services, proper ty and casualty reinsurance, insurance,","page_number":19,"box":{"x":265,"y":761,"width":630,"height":11}},{"id":"64445e56-c787-4235-920c-bec1daf651ca","block_type":"box","text":"diversified financial services, banking, direct to consumer, business to business and","page_number":19,"box":{"x":265,"y":776,"width":602,"height":11}},{"id":"44b39809-a58e-46b0-bc3e-6da0a1805704","block_type":"box","text":"technology. Mr. Keizer is a cer tified public accountant and also served on the board of the","page_number":19,"box":{"x":264,"y":791,"width":643,"height":11}},{"id":"2d2231e5-b626-4dbf-83d2-84e7aa5f50e0","block_type":"box","text":"American Institute of Cer tified Public Accountants. Mr. Keizer has been determined by the","page_number":19,"box":{"x":264,"y":806,"width":639,"height":11}},{"id":"7f11dba7-60e5-4a0d-8f0c-9759d527e516","block_type":"box","text":"Audit Committee to be an audit committee financial exper t, as such term is defined in the","page_number":19,"box":{"x":264,"y":821,"width":641,"height":11}},{"id":"a45c372b-ce8b-4607-95eb-a53f736648f4","block_type":"box","text":"applicable Commission rules.","page_number":19,"box":{"x":265,"y":837,"width":208,"height":10}},{"id":"045825c3-3fb0-401b-a809-ea0af20a2d1b","block_type":"box","text":"I-10","page_number":19,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"abef112c-08c2-4f39-9231-1c9a660713ef","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":19,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d30d4224-fa0d-484d-b1fa-2dfa85871b18","block_type":"box","text":"Directors Experience, Qualifications and Skills","page_number":20,"box":{"x":69,"y":49,"width":408,"height":9}},{"id":"4d4f02ed-21c7-4c2a-9e1c-c6a0cfd7d39a","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":65,"width":769,"height":12}},{"id":"f84280f1-4a44-4b53-82fd-d259d6872dfe","block_type":"box","text":"investment companies, most recently as a member of the boards of cer tain BlackRock","page_number":20,"box":{"x":265,"y":81,"width":621,"height":11}},{"id":"d129574d-b868-4708-a43e-eba6c73042f3","block_type":"box","text":"advised Funds and predecessor funds, including the legacy Merrill Lynch Investment","page_number":20,"box":{"x":265,"y":96,"width":599,"height":11}},{"id":"98420281-3d60-4773-96c0-7088c7654286","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":111,"width":641,"height":11}},{"id":"dd780786-e532-416d-8962-bdd6a1b0a8be","block_type":"box","text":"years of academic experience as a professor at Harvard Business School where she","page_number":20,"box":{"x":264,"y":126,"width":602,"height":11}},{"id":"cf08cdea-3490-42b2-968b-f6d599b78e42","block_type":"box","text":"taught courses on corporate strategy and corporate governance. Ms. Montgomery also","page_number":20,"box":{"x":264,"y":141,"width":617,"height":11}},{"id":"b7968558-ffe8-4cf2-a173-fc4023d4a293","block_type":"box","text":"has business management and corporate governance experience through her service on","page_number":20,"box":{"x":265,"y":156,"width":629,"height":11}},{"id":"09dd3db6-76cb-466f-8bc8-9a2efeba39c1","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":171,"width":628,"height":11}},{"id":"eca6dc33-53dc-4f9a-a20e-9336bb1c13d2","block_type":"box","text":"ar ticles and books on these topics.","page_number":20,"box":{"x":265,"y":187,"width":251,"height":10}},{"id":"6e0add60-f5ba-4761-83a4-391080dc2fc7","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":209,"width":764,"height":11}},{"id":"3abcc79d-d402-4d7a-9a21-6681b5a1c578","block_type":"box","text":"experience, including through his service as president, director and investment committee","page_number":20,"box":{"x":265,"y":224,"width":642,"height":11}},{"id":"3de47f89-1a3c-4e1f-8258-f5809df18fb8","block_type":"box","text":"chair for academic and not-for-profit organizations, and his experience as a par tner,","page_number":20,"box":{"x":264,"y":239,"width":593,"height":12}},{"id":"a30bb03f-0336-4439-a20a-fb53d4454a11","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":254,"width":603,"height":12}},{"id":"1a98f00c-d5fe-493d-9aa9-e12463ffb3a9","block_type":"box","text":"investment management experience as a board member of Athena Capital Advisors LLC.","page_number":20,"box":{"x":265,"y":269,"width":629,"height":12}},{"id":"ecfd4bf3-f86e-494a-b5f2-09167f41cee5","block_type":"box","text":"Lori Richards Lori Richards has more than 30 years of experience in the financial services industry,","page_number":20,"box":{"x":70,"y":292,"width":804,"height":11}},{"id":"581ca1ef-4df6-4ccc-abc8-7582f0759280","block_type":"box","text":"most notably as the first Director of the Office of Compliance Inspections and","page_number":20,"box":{"x":265,"y":307,"width":552,"height":11}},{"id":"c6aa2bf7-768b-4577-a36c-066e57eef7ba","block_type":"box","text":"Examinations (“OCIE”) of the Securities and Exchange Commission (“SEC”) from 1995 to","page_number":20,"box":{"x":265,"y":322,"width":636,"height":12}},{"id":"89602175-3daa-44c5-b043-cb35faaef7d7","block_type":"box","text":"2009. During 14 years as the Director of OCIE, she led the SEC’s nationwide examination","page_number":20,"box":{"x":265,"y":338,"width":639,"height":11}},{"id":"7484126e-32f3-432b-8ec2-731e72a90e64","block_type":"box","text":"oversight program for advisers, mutual funds, hedge funds, broker-dealers, stock","page_number":20,"box":{"x":265,"y":353,"width":576,"height":11}},{"id":"9c16f646-6e70-4232-b296-5f082b2fa959","block_type":"box","text":"exchanges, and other industry firms. Prior to that, from 1985 to 1995, she held various","page_number":20,"box":{"x":265,"y":368,"width":626,"height":11}},{"id":"5c736213-73e9-42da-801c-cc8b3c015d4b","block_type":"box","text":"roles at the SEC, including Associate Director for Enforcement for the SEC’s Pacific","page_number":20,"box":{"x":265,"y":383,"width":592,"height":11}},{"id":"4cb5fef2-413a-49f5-a4e2-64171df75bf7","block_type":"box","text":"Regional Office and executive assistant and senior advisor to then SEC Chairman Ar thur","page_number":20,"box":{"x":265,"y":398,"width":629,"height":11}},{"id":"35b8bfe9-933f-4f1e-9226-d9c7eeb490e1","block_type":"box","text":"Levitt. More recently, Ms. Richards served as Chief Compliance Officer of the Asset and","page_number":20,"box":{"x":265,"y":413,"width":626,"height":11}},{"id":"d730d812-3499-40c7-bbf3-452b675753e7","block_type":"box","text":"Wealth Management global lines of business at JPMorgan Chase & Co. from 2013 to","page_number":20,"box":{"x":264,"y":428,"width":608,"height":12}},{"id":"0ff3a5f0-b7a2-4bf1-bf44-9547c9b65967","block_type":"box","text":"2018 where she led its global compliance program, advised business leaders on","page_number":20,"box":{"x":265,"y":443,"width":575,"height":12}},{"id":"d1d758fa-b41e-4add-9ad8-f388d82a4a62","block_type":"box","text":"compliance issues, oversaw risk assessment, monitoring, testing and training, and","page_number":20,"box":{"x":264,"y":459,"width":591,"height":11}},{"id":"28f232df-e354-4789-b84f-eb9d44137212","block_type":"box","text":"maintained relationships with regulators. 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As of","page_number":26,"box":{"x":69,"y":203,"width":754,"height":11}},{"id":"4dc0ede4-5270-43ed-a207-41b4feffea47","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":26,"box":{"x":70,"y":218,"width":816,"height":11}},{"id":"05fc4ab0-ae9d-417d-9cbd-5acac614bc4a","block_type":"box","text":"Directors of the Corporation or their immediate family members owned beneficially or of record any securities of the","page_number":26,"box":{"x":70,"y":233,"width":822,"height":11}},{"id":"9c605b38-62ac-442e-a60a-a5c14a0f8d48","block_type":"box","text":"Fund’s investment adviser, principal underwriter, or any person directly or indirectly controlling, controlled by, or under","page_number":26,"box":{"x":70,"y":248,"width":837,"height":11}},{"id":"166fe0c4-8005-4c65-9170-986c8e336029","block_type":"box","text":"common control with such entities.","page_number":26,"box":{"x":69,"y":263,"width":248,"height":9}},{"id":"adbf8edd-985a-4080-a023-44696115dba3","block_type":"box","text":"Compensation of Directors","page_number":26,"box":{"x":69,"y":294,"width":194,"height":10}},{"id":"4911e787-7923-4cc8-905d-09e837e0bb62","block_type":"box","text":"Each Director who is an Independent Director is paid as compensation an annual retainer of $375,000 per year","page_number":26,"box":{"x":102,"y":315,"width":796,"height":12}},{"id":"881fd503-c76d-4400-af1c-8006dac4bf51","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":26,"box":{"x":68,"y":331,"width":810,"height":11}},{"id":"94ef0b98-6abf-4648-98dc-b3601043c83e","block_type":"box","text":"including the Corporation, and a $20,000 board meeting fee to be paid for each in-person board meeting attended","page_number":26,"box":{"x":70,"y":346,"width":814,"height":12}},{"id":"44e4baaa-b2e3-481a-a580-27274b60ef59","block_type":"box","text":"(and may receive a board meeting fee for telephonic attendance at board meetings), for up to five board meetings","page_number":26,"box":{"x":69,"y":361,"width":811,"height":12}},{"id":"99349b36-a670-4db3-8966-164e4c802ad1","block_type":"box","text":"held in a calendar year (compensation for meetings in excess of this number to be determined on a case-by-case","page_number":26,"box":{"x":69,"y":377,"width":805,"height":11}},{"id":"1e69ef19-ea56-4aba-aa94-6efec1ca378e","block_type":"box","text":"basis), together with out-of-pocket expenses in accordance with a board policy on travel and other business expenses","page_number":26,"box":{"x":69,"y":392,"width":838,"height":11}},{"id":"5a120e08-6301-4aee-a75c-2a4e0cddc7fb","block_type":"box","text":"relating to attendance at meetings. 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The Chair of the Board is paid an additional annual retainer of $150,000.","page_number":26,"box":{"x":69,"y":436,"width":689,"height":12}},{"id":"c5df66d7-7d37-4887-917c-0ca71745d567","block_type":"box","text":"The following table sets for th the compensation the Corporation paid to the Directors on behalf of the Fund for","page_number":26,"box":{"x":101,"y":460,"width":788,"height":11}},{"id":"ff5a2563-6c1d-4323-9552-9f7922025ef3","block_type":"box","text":"the fiscal year ended May 31, 2026 and the aggregate compensation paid to them by all BlackRock-advised Funds for","page_number":26,"box":{"x":68,"y":475,"width":842,"height":11}},{"id":"002c3811-c84f-43f5-8eaf-30824e40730b","block_type":"box","text":"the calendar year ended December 31, 2025.","page_number":26,"box":{"x":68,"y":490,"width":326,"height":11}},{"id":"c84ad87f-a4e1-4e1e-85d2-6f522e4dac5c","block_type":"box","text":"Name","page_number":26,"box":{"x":69,"y":559,"width":32,"height":7}},{"id":"c6fdf7c2-0cd3-481a-a224-f5c05203c259","block_type":"box","text":"Compensation from","page_number":26,"box":{"x":521,"y":548,"width":113,"height":9}},{"id":"6d6908f2-27d3-4ff4-86d1-29a203bad043","block_type":"box","text":"the Fund","page_number":26,"box":{"x":552,"y":559,"width":50,"height":7}},{"id":"a1fbad3d-3425-495e-afe0-826dd946f641","block_type":"box","text":"Estimated Annual","page_number":26,"box":{"x":664,"y":538,"width":102,"height":8}},{"id":"d2bdbf75-a9a9-4c44-accc-8b41aad14b2e","block_type":"box","text":"Benefits upon","page_number":26,"box":{"x":676,"y":548,"width":79,"height":9}},{"id":"b648d5db-9131-436e-a17e-d3ad4c69907a","block_type":"box","text":"Retirement","page_number":26,"box":{"x":683,"y":559,"width":64,"height":7}},{"id":"5a54d9dc-dcfe-4eed-8ff0-17713aa9c569","block_type":"box","text":"Aggregate","page_number":26,"box":{"x":822,"y":518,"width":61,"height":9}},{"id":"be2f04a0-b9e3-4790-aa91-ded2ac7161ce","block_type":"box","text":"Compensation from","page_number":26,"box":{"x":796,"y":528,"width":113,"height":9}},{"id":"872a1fbf-c228-483e-a067-a9333c49885e","block_type":"box","text":"the Fund and","page_number":26,"box":{"x":815,"y":539,"width":75,"height":7}},{"id":"431937ef-c1bd-4ebd-9750-a57cf91c811a","block_type":"box","text":"Other BlackRock","page_number":26,"box":{"x":802,"y":549,"width":102,"height":7}},{"id":"2aecc58d-ba53-463d-87e1-84d9bd336e7d","block_type":"box","text":"Advised Funds","page_number":26,"box":{"x":809,"y":559,"width":84,"height":7}},{"id":"87abcb4d-beb0-418b-8130-c65f65f2e23f","block_type":"box","text":"1","page_number":26,"box":{"x":893,"y":559,"width":4,"height":3}},{"id":"c77781c5-0336-4d3a-9897-4f2fe8b2d99c","block_type":"box","text":"Independent Directors","page_number":26,"box":{"x":70,"y":577,"width":156,"height":10}},{"id":"97abc465-0d61-47a9-8332-07351b53e676","block_type":"box","text":"Christopher J. 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None None None","page_number":26,"box":{"x":203,"y":803,"width":668,"height":9}},{"id":"954b6e7d-2289-478c-a99d-c1988f9479c2","block_type":"box","text":"John M. Perlowski","page_number":26,"box":{"x":78,"y":818,"width":127,"height":9}},{"id":"1b51cd11-f5cb-4a6c-87e3-bdaf433c3ec0","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . None None None","page_number":26,"box":{"x":211,"y":818,"width":660,"height":9}},{"id":"7c6fb32b-f825-4226-8b10-23a8b12b82f0","block_type":"box","text":"1","page_number":26,"box":{"x":69,"y":843,"width":3,"height":3}},{"id":"1ba2143d-05c9-4330-87ce-1810b4014548","block_type":"box","text":"For the number of BlackRock-advised Funds from which each Director receives compensation, see “Biographical Information” beginning on","page_number":26,"box":{"x":94,"y":843,"width":788,"height":9}},{"id":"05bea6c8-b0c8-4b51-bcca-ba6d8108d76f","block_type":"box","text":"page I-12.","page_number":26,"box":{"x":94,"y":853,"width":55,"height":9}},{"id":"a2fc2395-9ef8-4940-ab0f-97fe9ee90735","block_type":"box","text":"2","page_number":26,"box":{"x":69,"y":865,"width":3,"height":4}},{"id":"8f5942c2-b24b-463a-87d0-7f4c1e0be257","block_type":"box","text":"Compensation includes $695 earned as a consultant to the Independent Directors for the period April 1, 2026 to July 1, 2026.","page_number":26,"box":{"x":93,"y":865,"width":726,"height":9}},{"id":"1bfd2017-8535-4dc0-983e-b2ce0874b9bd","block_type":"box","text":"3","page_number":26,"box":{"x":69,"y":878,"width":3,"height":4}},{"id":"0d01aee0-add1-4816-add9-186c1cc9dce3","block_type":"box","text":"Chair of the Audit Committee.","page_number":26,"box":{"x":93,"y":878,"width":168,"height":7}},{"id":"59220ae6-be96-4eae-a9d4-16d2fa7826de","block_type":"box","text":"4","page_number":26,"box":{"x":68,"y":891,"width":4,"height":3}},{"id":"5b75a826-10a1-488f-b75e-9f18e02c9324","block_type":"box","text":"Chair of the Governance Committee.","page_number":26,"box":{"x":93,"y":890,"width":206,"height":8}},{"id":"0aa266d0-980f-48c9-ac7f-c17b3a2d0bbf","block_type":"box","text":"5","page_number":26,"box":{"x":69,"y":903,"width":3,"height":4}},{"id":"0d9cbacb-e6aa-48a4-a9a0-c21213f32377","block_type":"box","text":"Chair of the Per formance Oversight Committee.","page_number":26,"box":{"x":93,"y":903,"width":269,"height":9}},{"id":"cdd34ddb-ebd7-4fc0-9299-1ba684980c60","block_type":"box","text":"I-17","page_number":26,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"bb3da16b-fb00-4200-897d-32c5a595aad9","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":26,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"65990bcd-f933-4c7f-9fa6-ee05f9a311bc","block_type":"box","text":"6","page_number":27,"box":{"x":69,"y":45,"width":3,"height":4}},{"id":"7f4d49f4-ecd3-421f-bd7d-a54b40acb788","block_type":"box","text":"Chair of the Board and Chair of the Ad Hoc Topics Committee.","page_number":27,"box":{"x":93,"y":45,"width":352,"height":9}},{"id":"0d79237b-868d-4d4a-a2a1-d34ebbfbeef0","block_type":"box","text":"7","page_number":27,"box":{"x":69,"y":58,"width":3,"height":3}},{"id":"afe00eb3-2e7a-4e25-945c-4d1c1237b165","block_type":"box","text":"Chair of the Compliance Committee.","page_number":27,"box":{"x":93,"y":58,"width":205,"height":9}},{"id":"694af57f-7e7d-4d06-9289-68da0a8b6d94","block_type":"box","text":"IV. Management, Advisory and Other Service Arrangements","page_number":27,"box":{"x":69,"y":86,"width":432,"height":11}},{"id":"2a70f392-633a-48be-9846-0506cf6c131b","block_type":"box","text":"Management Agreement","page_number":27,"box":{"x":69,"y":117,"width":180,"height":11}},{"id":"7ee280c0-1434-4936-bea6-af4d9df8bd57","block_type":"box","text":"The Corporation, on behalf of the Fund, has entered into a management agreement with the Manager (the","page_number":27,"box":{"x":101,"y":139,"width":754,"height":11}},{"id":"edc7a9ec-90ce-415f-a5c9-1cd5425e086b","block_type":"box","text":"“Management Agreement”) pursuant to which the Manager provides the Fund with investment advisory and","page_number":27,"box":{"x":70,"y":154,"width":762,"height":12}},{"id":"14cf9c4b-1ac8-4e0f-9bb2-4bae6bb30fca","block_type":"box","text":"management services and receives for its services to the Fund a monthly fee as a percentage of the average daily","page_number":27,"box":{"x":69,"y":169,"width":816,"height":12}},{"id":"8ba7d12e-f7e6-464b-a06b-9ad71d50b7e1","block_type":"box","text":"net assets of the Fund.","page_number":27,"box":{"x":69,"y":184,"width":164,"height":9}},{"id":"1d9b813d-38ad-4eaa-9067-d0cc878e89d8","block_type":"box","text":"BlackRock has contractually agreed to waive the management fee with respect to any por tion of the Fund’s","page_number":27,"box":{"x":102,"y":207,"width":762,"height":11}},{"id":"a0be015f-7de0-4997-841a-86bc6644865c","block_type":"box","text":"assets estimated to be attributable to investments in other equity and fixed-income mutual funds and exchange","page_number":27,"box":{"x":69,"y":222,"width":799,"height":12}},{"id":"13001f4f-0304-48a6-bb56-a056d2246905","block_type":"box","text":"traded funds managed by BlackRock or its affiliates that have a contractual management fee, through","page_number":27,"box":{"x":68,"y":237,"width":726,"height":12}},{"id":"fef650a5-579c-43bc-8de3-ab3bfc59b086","block_type":"box","text":"June 30, 2028. BlackRock has contractually agreed to waive its management fees by the amount of investment","page_number":27,"box":{"x":69,"y":252,"width":797,"height":12}},{"id":"69d0a11a-7711-4d31-ab2f-a755e179a8f3","block_type":"box","text":"advisory fees the Fund pays to BlackRock indirectly through its investment in money market funds managed by","page_number":27,"box":{"x":69,"y":268,"width":789,"height":11}},{"id":"41e47d6b-b6d4-4396-b8e6-573a0aee2993","block_type":"box","text":"BlackRock or its affiliates, through June 30, 2028. The contractual agreements may be terminated upon 90 days’","page_number":27,"box":{"x":70,"y":283,"width":810,"height":11}},{"id":"8c0d8b17-42b4-44cc-9ab1-6066ebbd3c9e","block_type":"box","text":"notice by a majority of the Independent Directors or by a vote of a majority of the outstanding voting securities of the","page_number":27,"box":{"x":69,"y":298,"width":830,"height":11}},{"id":"e95d8706-b80d-4526-a15d-4908ee2610ad","block_type":"box","text":"Fund.","page_number":27,"box":{"x":70,"y":313,"width":36,"height":9}},{"id":"899eda3d-a3d1-4efb-b832-fa6ff9ab2626","block_type":"box","text":"BlackRock has contractually agreed to waive and/or reimburse fees or expenses of the Fund in order to limit","page_number":27,"box":{"x":102,"y":336,"width":773,"height":11}},{"id":"ce8716c0-0722-4611-9eed-ce3480c2d302","block_type":"box","text":"Total Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements (excluding Dividend","page_number":27,"box":{"x":68,"y":351,"width":787,"height":11}},{"id":"5e2bb7fc-6f55-43b4-bfbb-4f34e9e3f533","block_type":"box","text":"Expense, Interest Expense, Acquired Fund Fees and Expenses and cer tain other Fund expenses) to 1.65% (for","page_number":27,"box":{"x":70,"y":366,"width":785,"height":11}},{"id":"c071f56e-90dd-4939-82f7-cd36cf326c60","block_type":"box","text":"Investor A Shares), 2.39% (for Investor C Shares) and 1.38% (for Institutional Shares) of average daily net assets","page_number":27,"box":{"x":70,"y":381,"width":806,"height":11}},{"id":"fffffd8f-4f1f-4c34-a97e-e480b926c2b0","block_type":"box","text":"through June 30, 2028. This contractual agreement may be terminated upon 90 days’ notice by a majority of the","page_number":27,"box":{"x":68,"y":396,"width":805,"height":11}},{"id":"5c6c73ff-032a-4df2-bcfd-6ca3b10c7bf0","block_type":"box","text":"Independent Directors or by a vote of a majority of the outstanding voting securities of the Fund.","page_number":27,"box":{"x":70,"y":411,"width":682,"height":12}},{"id":"2e880381-ed0f-4b1a-8dfa-dd224f75940d","block_type":"box","text":"Pursuant to the Management Agreement, the Manager may from time to time, in its sole discretion to the extent","page_number":27,"box":{"x":102,"y":434,"width":800,"height":11}},{"id":"7730cf42-2fa2-4e68-bef9-e9c5bb86ecae","block_type":"box","text":"permitted by applicable law, appoint one or more sub-advisers, including, without limitation, affiliates of the Manager,","page_number":27,"box":{"x":70,"y":449,"width":834,"height":11}},{"id":"e35b8a59-2b04-4747-9bea-197a7dfe19b0","block_type":"box","text":"to per form investment advisory services with respect to the Fund. In addition, the Manager may delegate cer tain of","page_number":27,"box":{"x":68,"y":464,"width":825,"height":11}},{"id":"15c6b7cd-3194-4961-9ccb-8b97c039effa","block_type":"box","text":"its management functions under the Management Agreement to one or more of its affiliates to the extent permitted","page_number":27,"box":{"x":70,"y":479,"width":824,"height":12}},{"id":"71e44e1c-165c-41ef-bffc-534e51bb62ae","block_type":"box","text":"by applicable law. The Manager may terminate any or all sub-advisers or such delegation arrangements in its sole","page_number":27,"box":{"x":69,"y":495,"width":808,"height":11}},{"id":"d85b5d99-3285-4989-8191-49f30696cf0d","block_type":"box","text":"discretion at any time to the extent permitted by applicable law.","page_number":27,"box":{"x":69,"y":510,"width":451,"height":11}},{"id":"095c5639-73de-4ed9-9299-20399074e6b4","block_type":"box","text":"The table below sets for th information about the total management fees paid by the Fund to the Manager, and","page_number":27,"box":{"x":101,"y":532,"width":787,"height":11}},{"id":"83622fc0-fb27-4f24-b7b3-0ec66e2c73a1","block_type":"box","text":"the amounts waived and/or reimbursed, for the periods shown.","page_number":27,"box":{"x":68,"y":547,"width":451,"height":11}},{"id":"97617a37-704e-4abf-bdee-639f0e056c2c","block_type":"box","text":"Fees Paid","page_number":27,"box":{"x":586,"y":576,"width":55,"height":7}},{"id":"d3eba07d-11ed-415a-94ff-b1eaa5c02b91","block_type":"box","text":"to BlackRock","page_number":27,"box":{"x":574,"y":586,"width":79,"height":7}},{"id":"a477c5d7-c410-4b6e-b7d3-5316056a7910","block_type":"box","text":"Fees Waived","page_number":27,"box":{"x":700,"y":576,"width":72,"height":7}},{"id":"4ad7006c-08e3-4c0d-83f6-489ae82603c6","block_type":"box","text":"by BlackRock","page_number":27,"box":{"x":696,"y":586,"width":80,"height":9}},{"id":"7e71be8b-4155-4a85-a679-ece0fc604ebb","block_type":"box","text":"Fees Reimbursed","page_number":27,"box":{"x":810,"y":576,"width":99,"height":7}},{"id":"3fb164fb-ed02-4d84-ad29-db4f0257b840","block_type":"box","text":"by BlackRock","page_number":27,"box":{"x":820,"y":586,"width":80,"height":9}},{"id":"fe2788e3-eec6-4e53-8772-97358b4f0295","block_type":"box","text":"Fiscal Year Ended May 31, 2026 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $53,791,072 $2,739,302 $0","page_number":27,"box":{"x":70,"y":603,"width":798,"height":12}},{"id":"9b2ae242-72bb-4614-ac95-bc5645e04d4d","block_type":"box","text":"Fiscal Year Ended May 31, 2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $53,698,493 $4,272,915 $0","page_number":27,"box":{"x":70,"y":618,"width":798,"height":12}},{"id":"0e6dc160-12bc-4630-9bdd-5981430a3a10","block_type":"box","text":"Fiscal Year Ended May 31, 2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $65,008,587 $4,859,322 $0","page_number":27,"box":{"x":70,"y":633,"width":798,"height":12}},{"id":"d8c25723-5b13-4197-aceb-54e814fedffd","block_type":"box","text":"In addition, pursuant to a Shareholders’ Administrative Services Agreement, BlackRock provides cer tain","page_number":27,"box":{"x":102,"y":658,"width":740,"height":11}},{"id":"ba507cf8-87fa-4dce-a467-63f5d893c9af","block_type":"box","text":"shareholder liaison services in connection with the Corporation’s investor service center. The Corporation, on behalf","page_number":27,"box":{"x":69,"y":673,"width":829,"height":11}},{"id":"0ee2d6ff-809a-4368-8187-a1327b1d277e","block_type":"box","text":"of the Fund, reimburses BlackRock for its costs in maintaining the service center, which costs include, among other","page_number":27,"box":{"x":69,"y":688,"width":825,"height":11}},{"id":"3f86a946-5406-46cb-be40-1f5b1beb799d","block_type":"box","text":"things, employee salaries, leasehold expenses, and other out-of-pocket expenses.","page_number":27,"box":{"x":68,"y":703,"width":585,"height":11}},{"id":"96280405-4b03-4ef5-b1cc-58058f156286","block_type":"box","text":"For the periods shown, the Corporation, on behalf of the Fund, reimbursed to BlackRock fees for shareholder","page_number":27,"box":{"x":102,"y":726,"width":775,"height":11}},{"id":"1ba36e55-4527-4c46-94c1-b235b343c326","block_type":"box","text":"liaison services pursuant to such agreement as 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. . . . $ 7,817 $0","page_number":27,"box":{"x":533,"y":796,"width":345,"height":11}},{"id":"63755d69-a776-4d8e-a554-b0162a200419","block_type":"box","text":"Fiscal Year Ended May 31, 2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":27,"box":{"x":70,"y":812,"width":457,"height":11}},{"id":"1e017969-4afb-4927-8c21-a4b15af965ae","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . $ 7,710 $0","page_number":27,"box":{"x":533,"y":811,"width":345,"height":11}},{"id":"3f634b7a-4d12-4f74-baec-bb3854587a45","block_type":"box","text":"Fiscal Year Ended May 31, 2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":27,"box":{"x":70,"y":827,"width":457,"height":11}},{"id":"8c45349c-2bbd-4b25-bf17-4f9dd34207b7","block_type":"box","text":"....................","page_number":27,"box":{"x":533,"y":834,"width":157,"height":2}},{"id":"f2845bad-50ab-4998-bd4c-81d2a74e5635","block_type":"box","text":"$26,392 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2026.","page_number":28,"box":{"x":69,"y":82,"width":672,"height":12}},{"id":"4f1071df-7cdf-4612-9960-a0a710be03ad","block_type":"box","text":"Number of Other Accounts Managed","page_number":28,"box":{"x":391,"y":111,"width":211,"height":9}},{"id":"78292be5-2dbf-4303-87f6-7facaca2372c","block_type":"box","text":"and Assets by Account Type","page_number":28,"box":{"x":414,"y":121,"width":165,"height":9}},{"id":"1128ab13-d9a5-4ed8-970b-e3d975a57459","block_type":"box","text":"Number of Other Accounts and Assets","page_number":28,"box":{"x":656,"y":111,"width":222,"height":7}},{"id":"b5c3388b-c475-4a42-b527-e37cc638b00f","block_type":"box","text":"for Which Advisory Fee is Performance-Based","page_number":28,"box":{"x":634,"y":121,"width":265,"height":9}},{"id":"eeecea70-6aae-41f3-8cdd-6a8eeb4f76d0","block_type":"box","text":"Name of Portfolio 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Pooled","page_number":28,"box":{"x":735,"y":144,"width":74,"height":7}},{"id":"212cb0eb-2c61-4219-84cc-e7bf7315ffd0","block_type":"box","text":"Investment","page_number":28,"box":{"x":740,"y":154,"width":64,"height":7}},{"id":"1e568dee-d7ef-4f16-9432-9af482c0a48f","block_type":"box","text":"Vehicles","page_number":28,"box":{"x":748,"y":164,"width":48,"height":7}},{"id":"2527630f-c538-4ba3-a967-75d3bb464f2d","block_type":"box","text":"Other","page_number":28,"box":{"x":852,"y":154,"width":31,"height":7}},{"id":"49c8bcd1-24dd-4607-ab4b-d26429843ecc","block_type":"box","text":"Accounts","page_number":28,"box":{"x":840,"y":164,"width":54,"height":7}},{"id":"df3db5f0-9a00-4b0e-b980-c3f9d5eaf947","block_type":"box","text":"Mark McKenna 0 2 0 0 2 0","page_number":28,"box":{"x":74,"y":178,"width":797,"height":7}},{"id":"34bc8b1c-651e-4cdc-82fc-a809b609a074","block_type":"box","text":"$0 $1.77 Billion $0 $0 $1.77 Billion $0","page_number":28,"box":{"x":405,"y":190,"width":469,"height":8}},{"id":"6135fb5c-4690-47a1-b479-07a9e2df02e5","block_type":"box","text":"Por tfolio Manager Compensation Overview","page_number":28,"box":{"x":69,"y":224,"width":304,"height":11}},{"id":"ddd606e6-1bb5-4a0f-869f-381ea6c27da3","block_type":"box","text":"The discussion below describes the por tfolio manager’s compensation as of May 31, 2026.","page_number":28,"box":{"x":101,"y":247,"width":656,"height":11}},{"id":"df9bb6f1-c965-4dc4-a33e-7075979bb52a","block_type":"box","text":"BlackRock’s financial arrangements with its por tfolio managers, its competitive compensation and its career","page_number":28,"box":{"x":102,"y":269,"width":774,"height":12}},{"id":"3c3151a3-4489-43c9-ae66-06cba19ead65","block_type":"box","text":"path emphasis at all levels reflect the value senior management places on key resources. Compensation may include","page_number":28,"box":{"x":70,"y":285,"width":837,"height":11}},{"id":"bc8331f0-d169-4be4-8d19-fe0224b1f1cf","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":28,"box":{"x":69,"y":300,"width":823,"height":11}},{"id":"86cfe528-d066-4aec-a702-f1fc64ed4351","block_type":"box","text":"compensation include a base salary, a per formance-based discretionary bonus, par ticipation in various benefits","page_number":28,"box":{"x":69,"y":315,"width":799,"height":11}},{"id":"45226d51-8029-4002-8380-ca6e8f6bbe06","block_type":"box","text":"programs and one or more of the incentive compensation programs established by BlackRock.","page_number":28,"box":{"x":70,"y":330,"width":670,"height":11}},{"id":"523ae0da-1505-4ed9-9d3f-12a3a430afb3","block_type":"box","text":"Base Compensation.","page_number":28,"box":{"x":102,"y":353,"width":148,"height":11}},{"id":"3c939476-a414-4485-84bd-aee4c148e56c","block_type":"box","text":"Generally, por tfolio managers receive base compensation based on their position with the","page_number":28,"box":{"x":257,"y":353,"width":640,"height":11}},{"id":"9ddd2ae3-d778-4802-acf1-2c47f7ad2c59","block_type":"box","text":"firm.","page_number":28,"box":{"x":68,"y":368,"width":32,"height":9}},{"id":"6d8e4c76-811b-4f54-9765-c163ea0d8375","block_type":"box","text":"Discretionary Incentive Compensation","page_number":28,"box":{"x":69,"y":398,"width":277,"height":11}},{"id":"27df109f-fa2b-4c5d-b304-04bd9ad788af","block_type":"box","text":"Generally, discretionary incentive compensation for the Event Driven por tfolio manager is based on a formulaic","page_number":28,"box":{"x":102,"y":421,"width":788,"height":11}},{"id":"24351053-1e5e-4dee-9b0d-2d0a0f272bf1","block_type":"box","text":"compensation program. BlackRock’s formulaic por tfolio manager compensation program is based on team revenue","page_number":28,"box":{"x":69,"y":436,"width":822,"height":11}},{"id":"6c1296d0-a6ca-4f95-b468-95a2cd208a65","block_type":"box","text":"and pre-tax investment per formance relative to benchmarks over 1-, 3- and 5-year per formance periods, as","page_number":28,"box":{"x":69,"y":451,"width":762,"height":11}},{"id":"317fdc16-fdb6-40c8-bd00-c3309b38ff2c","block_type":"box","text":"applicable. In most cases, these benchmarks are the same as the benchmark or benchmarks against which the","page_number":28,"box":{"x":69,"y":466,"width":798,"height":11}},{"id":"0c6f6466-5f31-4f5a-b836-0a08f1d753fb","block_type":"box","text":"per formance of the Fund or other accounts managed by the por tfolio managers are measured. With respect to the","page_number":28,"box":{"x":70,"y":481,"width":813,"height":11}},{"id":"283f4e8a-a79f-45c3-b835-1e8bbbef436e","block_type":"box","text":"por tfolio manager, the benchmark for the Fund and other accounts is ICE BofA 3-Month U.S. Treasury Bill Index.","page_number":28,"box":{"x":70,"y":496,"width":794,"height":12}},{"id":"389d07e2-5b15-4866-9fbd-b2392ecef03b","block_type":"box","text":"Distribution of Discretionary Incentive Compensation.","page_number":28,"box":{"x":102,"y":519,"width":389,"height":11}},{"id":"d908bf14-23b0-43fe-9941-90bc56556da5","block_type":"box","text":"Discretionary incentive compensation is distributed to","page_number":28,"box":{"x":499,"y":519,"width":383,"height":11}},{"id":"ab58e5e1-0de9-4334-9324-53eac56e5e6e","block_type":"box","text":"por tfolio managers in a combination of cash, deferred BlackRock, Inc. stock awards, and/or deferred cash awards","page_number":28,"box":{"x":70,"y":534,"width":815,"height":11}},{"id":"aece9ced-80d2-4169-b8e0-45908664f2ba","block_type":"box","text":"that notionally track the return of cer tain BlackRock investment products.","page_number":28,"box":{"x":68,"y":549,"width":522,"height":11}},{"id":"9a8db193-c045-495a-a916-05dc5dc859fe","block_type":"box","text":"Por tfolio managers receive their annual discretionary incentive compensation in the form of cash. Por tfolio","page_number":28,"box":{"x":102,"y":572,"width":760,"height":11}},{"id":"e6fd1305-e76b-4314-a4e8-3f8bad0bfef0","block_type":"box","text":"managers whose total compensation is above a specified threshold also receive deferred BlackRock, Inc. stock","page_number":28,"box":{"x":69,"y":587,"width":795,"height":11}},{"id":"43c0e471-870a-48b4-8ba4-8d02c15a13ff","block_type":"box","text":"awards annually as par t of their discretionary incentive compensation. Paying a por tion of discretionary incentive","page_number":28,"box":{"x":69,"y":602,"width":805,"height":11}},{"id":"f52b1dfd-fcec-49b7-afc9-795a1b3e6c6e","block_type":"box","text":"compensation in the form of deferred BlackRock, Inc. stock puts compensation earned by a por tfolio manager for a","page_number":28,"box":{"x":69,"y":617,"width":822,"height":12}},{"id":"7d0274be-12e4-4ea5-b632-2a4dc87a05b9","block_type":"box","text":"given year “at risk” based on BlackRock’s ability to sustain and improve its per formance over future periods. In some","page_number":28,"box":{"x":68,"y":632,"width":839,"height":12}},{"id":"be0eeacd-a2b2-4902-a0a9-7c49cb15ac67","block_type":"box","text":"cases, additional deferred BlackRock, Inc. stock may be granted to cer tain key employees as par t of a long-term","page_number":28,"box":{"x":69,"y":647,"width":802,"height":12}},{"id":"0beaf140-39f4-4d05-909b-87f0490cc496","block_type":"box","text":"incentive award to aid in retention, align interests with long-term shareholders and motivate per formance. Deferred","page_number":28,"box":{"x":70,"y":663,"width":820,"height":11}},{"id":"d8e62b85-dd0d-44bc-bb73-6a0c4554a72c","block_type":"box","text":"BlackRock, Inc. stock awards are generally granted in the form of BlackRock, Inc. restricted stock units that vest","page_number":28,"box":{"x":70,"y":678,"width":801,"height":11}},{"id":"d58bc7ab-4f4c-4bb1-8542-a6eab8e1ad22","block_type":"box","text":"pursuant to the terms of the applicable plan and, once vested, settle in BlackRock, Inc. common stock. The por tfolio","page_number":28,"box":{"x":70,"y":693,"width":831,"height":11}},{"id":"74e8ac80-9ae1-4560-bbce-b01e8b4c168e","block_type":"box","text":"manager of this Fund has deferred BlackRock, Inc. stock awards.","page_number":28,"box":{"x":69,"y":708,"width":463,"height":11}},{"id":"e445ec86-9b9d-48b8-9a83-18ea412c9618","block_type":"box","text":"For cer tain por tfolio managers, a por tion of the discretionary incentive compensation is also distributed in the","page_number":28,"box":{"x":102,"y":731,"width":785,"height":11}},{"id":"44cca493-fd8e-4d6f-8e47-2abc9717c879","block_type":"box","text":"form of deferred cash awards that notionally track the returns of select BlackRock investment products they manage,","page_number":28,"box":{"x":68,"y":746,"width":836,"height":11}},{"id":"ef4ac03d-021f-4e34-8765-30cbbc339adf","block_type":"box","text":"which provides direct alignment of por tfolio manager discretionary incentive compensation with investment product","page_number":28,"box":{"x":68,"y":761,"width":821,"height":11}},{"id":"65d34509-dac7-4b87-90b7-771086c9d301","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":28,"box":{"x":69,"y":776,"width":829,"height":11}},{"id":"dd9dad5a-a101-4a4e-860c-6725bf4aba20","block_type":"box","text":"por tfolio managers who manage specified products and whose total compensation is above a specified threshold are","page_number":28,"box":{"x":70,"y":791,"width":835,"height":11}},{"id":"4cab070c-1a14-4e75-8ed8-5434dc9c433b","block_type":"box","text":"eligible to par ticipate in the deferred cash award program.","page_number":28,"box":{"x":69,"y":806,"width":414,"height":11}},{"id":"282149a4-fb22-48be-b4d8-5205a8806ba2","block_type":"box","text":"Other Compensation Benefits.","page_number":28,"box":{"x":101,"y":829,"width":218,"height":11}},{"id":"b575aa0b-66ee-4857-8931-210ccba6a15e","block_type":"box","text":"In addition to base salary and discretionary incentive compensation, por tfolio","page_number":28,"box":{"x":327,"y":829,"width":552,"height":11}},{"id":"94898bb8-40db-4ff9-aaa6-43fdabfedb1e","block_type":"box","text":"managers may be eligible to receive or par ticipate in one or more of the following:","page_number":28,"box":{"x":69,"y":844,"width":582,"height":11}},{"id":"ff8da1ca-7e7c-469a-847e-130001b9b445","block_type":"box","text":"Incentive Savings Plans","page_number":28,"box":{"x":102,"y":867,"width":167,"height":11}},{"id":"0fcddc83-fcb6-48c6-857c-4d21d8e759ab","block_type":"box","text":"— BlackRock, Inc. has created a variety of incentive savings plans in which BlackRock","page_number":28,"box":{"x":274,"y":867,"width":614,"height":11}},{"id":"2e72b143-ac0d-4f88-a4b7-a8dd6c915ff6","block_type":"box","text":"employees are eligible to par ticipate, including a 401(k) plan, the BlackRock Retirement Savings Plan (RSP), and the","page_number":28,"box":{"x":69,"y":882,"width":831,"height":11}},{"id":"92f74f26-1247-47e8-a894-dfae08d30e8e","block_type":"box","text":"BlackRock Employee Stock Purchase Plan (ESPP). The employer contribution components of the RSP include a","page_number":28,"box":{"x":70,"y":897,"width":785,"height":11}},{"id":"4107b193-0098-42e9-ba9c-8368957a33cf","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":28,"box":{"x":69,"y":911,"width":830,"height":12}},{"id":"df44a41e-481e-48bd-ae18-8dc8db09d2ac","block_type":"box","text":"I-19","page_number":28,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"9610a6bb-8f96-4de3-ad7c-66abcfb1b89a","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":28,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b0b551cf-2b0e-4e6f-a216-09b9d0d059e1","block_type":"box","text":"company retirement contribution equal to 3-5% of eligible compensation up to the Internal Revenue Service limit","page_number":29,"box":{"x":69,"y":45,"width":799,"height":11}},{"id":"ea6eeba5-d74b-49ae-ae52-8b336431c36d","block_type":"box","text":"($360,000 for 2026). The RSP offers a range of investment options, including registered investment companies and","page_number":29,"box":{"x":69,"y":59,"width":831,"height":12}},{"id":"691b500f-0915-40a3-a884-4b6c380b61bd","block_type":"box","text":"collective investment funds managed by the firm. BlackRock contributions follow the investment direction set by","page_number":29,"box":{"x":69,"y":75,"width":798,"height":11}},{"id":"fa02a1e6-f9ae-49e8-b09e-34ad00e487fc","block_type":"box","text":"par ticipants for their own contributions or, absent par ticipant investment direction, are invested into a target date","page_number":29,"box":{"x":70,"y":90,"width":809,"height":11}},{"id":"1a5d586e-d439-4af0-a39c-304a2276ed52","block_type":"box","text":"fund that corresponds to, or is closest to, the year in which the par ticipant attains age 65. The ESPP allows for","page_number":29,"box":{"x":68,"y":105,"width":793,"height":11}},{"id":"3907c728-600d-4971-96c6-73d4668adf9a","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":29,"box":{"x":70,"y":120,"width":832,"height":11}},{"id":"819fb41d-73fe-4894-8eef-64f2962b9eef","block_type":"box","text":"Annual par ticipation in the ESPP is limited to the purchase of 1,000 shares of common stock or a dollar value of","page_number":29,"box":{"x":68,"y":135,"width":805,"height":11}},{"id":"ca7406ed-67d5-40b9-8afc-db22c7028bc3","block_type":"box","text":"$25,000 based on its fair market value on the purchase date. All of the eligible por tfolio managers are eligible to","page_number":29,"box":{"x":69,"y":150,"width":808,"height":12}},{"id":"a805ceeb-c3a5-42c6-a070-c1d0e01d7cae","block_type":"box","text":"par ticipate in these plans.","page_number":29,"box":{"x":70,"y":166,"width":185,"height":11}},{"id":"c115fa80-68f9-4bc5-8bd6-0f1ca13f675f","block_type":"box","text":"Por tfolio Manager Beneficial Holdings","page_number":29,"box":{"x":69,"y":196,"width":268,"height":11}},{"id":"c9dc0b70-a7f9-4404-a7e6-74db4aeedc3b","block_type":"box","text":"As of May 31, 2026, the Fund’s most recently completed fiscal year end, the dollar range of securities","page_number":29,"box":{"x":101,"y":218,"width":731,"height":12}},{"id":"d2c9d57a-aabd-4f3d-b497-d19abfa13365","block_type":"box","text":"beneficially owned by the por tfolio manager in the Fund is shown below:","page_number":29,"box":{"x":69,"y":234,"width":511,"height":11}},{"id":"8b0bc06a-f357-4559-bb5f-34bd8d1331d6","block_type":"box","text":"Portfolio Manager","page_number":29,"box":{"x":69,"y":272,"width":105,"height":9}},{"id":"e92cc2d1-1626-4263-b882-f43e64138b97","block_type":"box","text":"Dollar Range of Equity","page_number":29,"box":{"x":759,"y":262,"width":129,"height":9}},{"id":"1b3ea5cd-32b8-4d18-b7a6-e3124c302edb","block_type":"box","text":"Securities Beneficially Owned","page_number":29,"box":{"x":736,"y":272,"width":173,"height":9}},{"id":"6e2c4055-a03a-433e-99b9-8c814f3c5bec","block_type":"box","text":"Mark McKenna","page_number":29,"box":{"x":70,"y":290,"width":105,"height":9}},{"id":"61e5ca1d-129e-4350-a0b2-7dd521ab5a36","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Over $1,","page_number":29,"box":{"x":182,"y":289,"width":638,"height":11}},{"id":"80315560-eccb-4563-8cb2-dac9e858a01e","block_type":"box","text":"000,000","page_number":29,"box":{"x":822,"y":290,"width":63,"height":10}},{"id":"b8203e4c-ac66-430b-afd6-4ab8dbeb7e7b","block_type":"box","text":"Por tfolio Manager Potential Material Conflicts of Interest","page_number":29,"box":{"x":69,"y":321,"width":403,"height":11}},{"id":"04fe72c9-3821-49e8-82c0-3bb7167f6eea","block_type":"box","text":"BlackRock has built a professional working environment, firm-wide compliance culture and compliance","page_number":29,"box":{"x":102,"y":344,"width":727,"height":11}},{"id":"df2649cb-fba4-4114-ac97-8f10c7574859","block_type":"box","text":"procedures and systems designed to protect against potential incentives that may favor one account over another.","page_number":29,"box":{"x":70,"y":359,"width":814,"height":11}},{"id":"5db8c870-b99d-464c-8460-01ed22298aa8","block_type":"box","text":"BlackRock has adopted policies and procedures that address the allocation of investment oppor tunities, execution of","page_number":29,"box":{"x":70,"y":374,"width":837,"height":11}},{"id":"13b3c215-9f89-4591-9440-b04b95ddb336","block_type":"box","text":"por tfolio transactions, personal trading by employees and other potential conflicts of interest that are designed to","page_number":29,"box":{"x":70,"y":389,"width":810,"height":11}},{"id":"54d9644b-8e43-45d7-9ad0-62983768918f","block_type":"box","text":"ensure that all client accounts are treated equitably over time. Never theless, BlackRock furnishes investment","page_number":29,"box":{"x":69,"y":404,"width":782,"height":11}},{"id":"5f8a35eb-e468-448b-8c2a-1b199cd6b6f2","block_type":"box","text":"management and advisory services to numerous clients in addition to the Fund, and BlackRock may, consistent with","page_number":29,"box":{"x":69,"y":420,"width":830,"height":11}},{"id":"4adce560-f857-4743-b650-17a2597dffd8","block_type":"box","text":"applicable law, make investment recommendations to other clients or accounts (including accounts which are hedge","page_number":29,"box":{"x":69,"y":435,"width":828,"height":11}},{"id":"425396e3-ce20-45e2-83c2-8d54f67ee3a5","block_type":"box","text":"funds or have per formance or higher fees paid to BlackRock, or in which por tfolio managers have a personal interest","page_number":29,"box":{"x":68,"y":450,"width":834,"height":11}},{"id":"568b2d0a-5164-40a1-ae08-588517b91866","block_type":"box","text":"in the receipt of such fees), which may be the same as or different from those made to the Fund. In addition,","page_number":29,"box":{"x":70,"y":465,"width":777,"height":11}},{"id":"fc4f29ba-8a91-4aec-99e1-d547dfdd4678","block_type":"box","text":"BlackRock, its affiliates and significant shareholders and any officer, director, shareholder or employee may or may","page_number":29,"box":{"x":70,"y":480,"width":821,"height":11}},{"id":"bed5e117-e129-4f69-bd40-c3a325dcf33f","block_type":"box","text":"not have an interest in the securities whose purchase and sale BlackRock recommends to the Fund. BlackRock, or","page_number":29,"box":{"x":69,"y":495,"width":819,"height":11}},{"id":"45d11815-a41a-4c3c-b2f7-b1d4ae6171c2","block_type":"box","text":"any of its affiliates or significant shareholders, or any officer, director, shareholder, employee or any member of their","page_number":29,"box":{"x":69,"y":510,"width":832,"height":11}},{"id":"94cb6679-075a-4dbd-a2ce-59a504eda095","block_type":"box","text":"families may take different actions than those recommended to the Fund by BlackRock with respect to the same","page_number":29,"box":{"x":68,"y":525,"width":804,"height":11}},{"id":"e540bc4c-b9ea-42d0-bc13-4ee8c3402238","block_type":"box","text":"securities. Moreover, BlackRock may refrain from rendering any advice or services concerning securities of","page_number":29,"box":{"x":69,"y":540,"width":760,"height":12}},{"id":"c07a213c-8a44-4e80-b925-d9fd6308d4e5","block_type":"box","text":"companies of which any of BlackRock’s (or its affiliates’ or significant shareholders’) officers, directors or employees","page_number":29,"box":{"x":69,"y":555,"width":834,"height":12}},{"id":"a3d52e84-9ebe-419d-8182-da31316ba817","block_type":"box","text":"are directors or officers, or companies as to which BlackRock or any of its affiliates or significant shareholders or the","page_number":29,"box":{"x":69,"y":571,"width":836,"height":11}},{"id":"9e268df9-5b12-4e32-bb04-07ec87a28370","block_type":"box","text":"officers, directors and employees of any of them has any substantial economic interest or possesses material non","page_number":29,"box":{"x":69,"y":586,"width":822,"height":11}},{"id":"841ae241-e9ce-491d-9af1-928a8a530eda","block_type":"box","text":"public information. Cer tain por tfolio managers also may manage accounts whose investment strategies may at times","page_number":29,"box":{"x":70,"y":601,"width":835,"height":11}},{"id":"dbc00edb-b733-46fb-9adf-c85f180eeff4","block_type":"box","text":"be opposed to the strategy utilized for the Fund. It should also be noted that Mr. McKenna may be managing hedge","page_number":29,"box":{"x":69,"y":616,"width":821,"height":11}},{"id":"e95ae8bc-4094-458c-878f-97c98ce2bdf8","block_type":"box","text":"fund and/or long only accounts, or may be par t of a team managing hedge fund and/or long only accounts, subject to","page_number":29,"box":{"x":68,"y":631,"width":839,"height":11}},{"id":"da607ca2-c13e-4eb2-b3ea-fce73d3bfafc","block_type":"box","text":"incentive fees. Mr. McKenna may therefore be entitled to receive a por tion of any incentive fees earned on such","page_number":29,"box":{"x":70,"y":646,"width":797,"height":11}},{"id":"06d48cb2-0071-4489-b3b5-3fa974a40813","block_type":"box","text":"accounts.","page_number":29,"box":{"x":69,"y":662,"width":67,"height":8}},{"id":"96154ebc-20ab-40c0-8051-e1342430db88","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":29,"box":{"x":101,"y":684,"width":788,"height":11}},{"id":"72411978-0920-456d-b677-17ec6412b54e","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":29,"box":{"x":70,"y":699,"width":839,"height":11}},{"id":"b60b73e6-6f21-410e-9198-c3fe78714810","block_type":"box","text":"fiduciary duties. BlackRock attempts to allocate investments in a fair and equitable manner among client accounts,","page_number":29,"box":{"x":68,"y":714,"width":823,"height":12}},{"id":"8b4a21c5-e7e5-48e9-8148-4443299803fc","block_type":"box","text":"with no account receiving preferential treatment. To this end, BlackRock has adopted policies that are intended to","page_number":29,"box":{"x":68,"y":729,"width":812,"height":12}},{"id":"f19a20a5-d220-4f9e-a1d7-5faa0ead5731","block_type":"box","text":"ensure reasonable efficiency in client transactions and provide BlackRock with sufficient flexibility to allocate","page_number":29,"box":{"x":69,"y":744,"width":777,"height":12}},{"id":"6fd972bb-b702-41c4-a61a-ace37001f845","block_type":"box","text":"investments in a manner that is consistent with the par ticular investment discipline and client base, as appropriate.","page_number":29,"box":{"x":70,"y":760,"width":826,"height":11}},{"id":"5d0ab5b9-eca1-40c3-af2e-d58795080609","block_type":"box","text":"Custodian","page_number":29,"box":{"x":69,"y":790,"width":72,"height":9}},{"id":"082e7525-cab3-4b89-bec3-2ed7c4712a00","block_type":"box","text":"The Bank of New York Mellon (“BNY Mellon” or the “Custodian”), which has its principal place of business at","page_number":29,"box":{"x":101,"y":812,"width":776,"height":12}},{"id":"cffe661c-d322-4257-a1d9-b2c92dc33688","block_type":"box","text":"240 Greenwich Street, New York, New York 10286, serves as the custodian for the Fund. The Custodian, among","page_number":29,"box":{"x":69,"y":828,"width":802,"height":11}},{"id":"52d8eb6c-1c9f-4147-ba4b-d0ac5ab06da7","block_type":"box","text":"other responsibilities, maintains a custody account or accounts in the name of the Fund, receives and delivers all","page_number":29,"box":{"x":69,"y":843,"width":808,"height":11}},{"id":"0bfd0030-5887-40c9-b66c-d6e7dcc8f8cf","block_type":"box","text":"assets for the Fund upon purchase and upon sale or maturity, and collects and receives all income and other","page_number":29,"box":{"x":69,"y":858,"width":778,"height":11}},{"id":"0056190d-562a-489f-a075-4a1ff7926ac2","block_type":"box","text":"payments and distributions on account of the assets of the Fund. On a monthly basis, the Custodian nets the Fund’s","page_number":29,"box":{"x":70,"y":873,"width":832,"height":11}},{"id":"653077cc-2a57-4bf3-b69d-40f3d6f66949","block_type":"box","text":"daily positive and negative cash balances and calculates a credit (“custody credit”) or a charge based on that net","page_number":29,"box":{"x":69,"y":888,"width":809,"height":11}},{"id":"bc839482-0785-4cec-8b73-a8d17b14c52a","block_type":"box","text":"amount. The custodian fees, including the amount of any overdraft charges, may be reduced by that amount of such","page_number":29,"box":{"x":69,"y":903,"width":827,"height":12}},{"id":"3c5cd8d5-b0f5-410f-b551-5eb96e7641cf","block_type":"box","text":"I-20","page_number":29,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"e114a450-1860-4e56-8df2-3b3c04d4c450","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":29,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"88233ca1-45c1-499d-9d30-5e63148692dc","block_type":"box","text":"custody credits, and any unused credits at the end of a given month may be carried forward to a subsequent month.","page_number":30,"box":{"x":69,"y":45,"width":830,"height":11}},{"id":"d9d54a88-3843-4b21-87ae-92bdd48106e3","block_type":"box","text":"Any such credits unused by the end of the Fund’s fiscal year will not expire. Net debits at the end of a given month","page_number":30,"box":{"x":68,"y":60,"width":817,"height":11}},{"id":"719e1426-a617-4963-b04b-296d823cd99b","block_type":"box","text":"are added to the Fund’s custody bill and paid by the Fund.","page_number":30,"box":{"x":69,"y":75,"width":413,"height":11}},{"id":"d551e26c-8637-4722-9128-87b7b3893d88","block_type":"box","text":"Transfer Agent","page_number":30,"box":{"x":68,"y":105,"width":107,"height":11}},{"id":"6a188b7d-4943-4b3d-acbd-54849fcef11c","block_type":"box","text":"BNY Mellon Investment Servicing (US) Inc., which has its principal place of business at 301 Bellevue Parkway,","page_number":30,"box":{"x":102,"y":128,"width":784,"height":11}},{"id":"b27bb0a8-9d88-4f1a-ba02-e7ed05cd3fe6","block_type":"box","text":"Wilmington, Delaware 19809, serves as the transfer agent and dividend disbursement agent for the Fund.","page_number":30,"box":{"x":68,"y":143,"width":758,"height":11}},{"id":"29b4a291-d7fd-44a7-8ca5-0eeeb9aa3265","block_type":"box","text":"Accounting Services","page_number":30,"box":{"x":68,"y":173,"width":150,"height":11}},{"id":"ccd57960-76b8-48b3-aa31-411fac0adf86","block_type":"box","text":"BNY Mellon serves as the accounting services provider for the Fund. BNY Mellon records investment, capital","page_number":30,"box":{"x":102,"y":196,"width":774,"height":11}},{"id":"c1dbf4fd-35ea-4a03-9827-b4f8d1f3743d","block_type":"box","text":"share and income and expense activities; verifies and transmits trade tickets; maintains accounting ledgers for","page_number":30,"box":{"x":69,"y":211,"width":793,"height":11}},{"id":"7c02d55f-afd3-4ef0-bc92-56fba4a69f5d","block_type":"box","text":"investment securities; maintains tax lots; reconciles cash with the Fund’s custodian; repor ts cash balances to the","page_number":30,"box":{"x":70,"y":226,"width":814,"height":11}},{"id":"e6f8bb77-6911-41ad-9cc9-adb5f76afc00","block_type":"box","text":"Manager; prepares cer tain financial statements; calculates expenses, gains, losses and income; controls","page_number":30,"box":{"x":70,"y":241,"width":753,"height":11}},{"id":"5ecb304d-24b6-4cd1-b44d-e05f3dac4523","block_type":"box","text":"disbursements; works with independent pricing sources; and computes and repor ts net asset value. In connection","page_number":30,"box":{"x":69,"y":257,"width":815,"height":11}},{"id":"6bc382fb-b1c6-4391-9505-50638f17782c","block_type":"box","text":"with its accounting services, BNY Mellon also provides cer tain administration services.","page_number":30,"box":{"x":68,"y":272,"width":621,"height":11}},{"id":"be56e5d3-f829-40ee-a25a-14245dc770dc","block_type":"box","text":"The table below shows the amounts paid by the Fund to BNY Mellon and the Manager for accounting services for","page_number":30,"box":{"x":101,"y":294,"width":806,"height":11}},{"id":"0f4e51e7-7fd2-48eb-81e3-6fd6a8762cca","block_type":"box","text":"the periods shown.","page_number":30,"box":{"x":68,"y":309,"width":135,"height":11}},{"id":"68b79568-3aff-4d9e-9932-f02232206b58","block_type":"box","text":"Fees Paid to BNY Mellon Fees Paid to the Manager","page_number":30,"box":{"x":585,"y":338,"width":324,"height":8}},{"id":"818a4855-2049-4238-8d54-ca94355cd4bf","block_type":"box","text":"Fiscal Year Ended May 31, 2026","page_number":30,"box":{"x":70,"y":355,"width":230,"height":11}},{"id":"0b214d02-8616-4bed-8b95-45679a8447dc","block_type":"box","text":"...............................","page_number":30,"box":{"x":307,"y":363,"width":246,"height":1}},{"id":"43131c67-4943-45d8-864a-74348b4cd4f6","block_type":"box","text":"$294,366 $0","page_number":30,"box":{"x":621,"y":355,"width":222,"height":11}},{"id":"60e8e957-485e-4759-b4c5-ef9956dcadf7","block_type":"box","text":"Fiscal Year Ended May 31, 2025","page_number":30,"box":{"x":70,"y":370,"width":230,"height":11}},{"id":"5584e968-df82-48da-8ddb-9741081e29b2","block_type":"box","text":"...............................","page_number":30,"box":{"x":307,"y":378,"width":246,"height":1}},{"id":"0532f879-2267-493d-8eb7-a288d56d1081","block_type":"box","text":"$297,538 $0","page_number":30,"box":{"x":621,"y":370,"width":222,"height":11}},{"id":"40d50676-7341-417e-9f97-79d62641e8dd","block_type":"box","text":"Fiscal Year Ended May 31, 2024","page_number":30,"box":{"x":70,"y":386,"width":230,"height":11}},{"id":"778dc7cb-2130-4a00-b046-124e06517941","block_type":"box","text":"...............................","page_number":30,"box":{"x":307,"y":393,"width":246,"height":1}},{"id":"160fb537-6b13-467a-ae33-0d50df8b1fa2","block_type":"box","text":"$353,461 $0","page_number":30,"box":{"x":621,"y":385,"width":222,"height":11}},{"id":"92982355-8504-40d8-9846-1590ece3fb43","block_type":"box","text":"Credit Agreement","page_number":30,"box":{"x":69,"y":417,"width":129,"height":11}},{"id":"8c385c8a-9189-41d0-8afe-830902d66a57","block_type":"box","text":"The Corporation, on behalf of the Fund, along with cer tain other funds managed by the Manager and its affiliates","page_number":30,"box":{"x":101,"y":440,"width":804,"height":11}},{"id":"2523aba3-1777-4a60-9657-3841da45e599","block_type":"box","text":"(“Par ticipating Funds”), is a par ty to a 364-day, $2.4 billion credit agreement with a group of lenders, which facility","page_number":30,"box":{"x":69,"y":454,"width":817,"height":12}},{"id":"c9e99214-b61a-473f-b011-83ecde130bff","block_type":"box","text":"terminates on April 8, 2027, unless otherwise extended or renewed (the “Credit Agreement”). Excluding","page_number":30,"box":{"x":68,"y":470,"width":743,"height":11}},{"id":"3e4def5b-79be-456c-9eda-60cb911b8776","block_type":"box","text":"commitments designated for cer tain Par ticipating Funds, the Par ticipating Funds, including the Fund, can borrow up","page_number":30,"box":{"x":69,"y":485,"width":825,"height":11}},{"id":"6abf215f-d963-48fd-8524-107538130252","block_type":"box","text":"to an aggregate commitment amount of $1.75 billion at any time outstanding, subject to asset coverage and other","page_number":30,"box":{"x":68,"y":499,"width":818,"height":12}},{"id":"87919494-4a64-4cdd-8528-81d4cd58954a","block_type":"box","text":"limitations as specified in the Credit Agreement. The Fund may borrow under the Credit Agreement to meet","page_number":30,"box":{"x":70,"y":515,"width":761,"height":11}},{"id":"feff26d1-47cd-4b39-86e2-3d42d4fb787c","block_type":"box","text":"shareholder redemptions and for other lawful purposes. However, the Fund may not borrow under the Credit","page_number":30,"box":{"x":69,"y":530,"width":768,"height":11}},{"id":"eba173df-2c66-40b5-831b-9b51f399084f","block_type":"box","text":"Agreement for leverage. The Fund may borrow up to the maximum amount allowable under its current Prospectus and","page_number":30,"box":{"x":68,"y":545,"width":838,"height":12}},{"id":"9970dc5a-bde7-4b98-8a9b-bd731744f4ad","block_type":"box","text":"SAI, subject to various other legal, regulatory or contractual limits. Borrowing results in interest expense and other","page_number":30,"box":{"x":69,"y":561,"width":816,"height":11}},{"id":"2f4d4d98-7c4d-4276-b3ba-fd1c51bc7777","block_type":"box","text":"fees and expenses for the Fund which may impact the Fund’s net expenses. The costs of borrowing may reduce the","page_number":30,"box":{"x":68,"y":576,"width":825,"height":11}},{"id":"63056cfd-a21e-4a74-8ccb-419c54dbdb89","block_type":"box","text":"Fund’s return. The Fund is charged its pro rata share of upfront fees and commitment fees on the aggregate","page_number":30,"box":{"x":70,"y":591,"width":771,"height":11}},{"id":"2bfd2c2e-466b-4e39-9a99-cb2f0782871a","block_type":"box","text":"commitment amount based on its net assets. If the Fund borrows pursuant to the Credit Agreement, the Fund will be","page_number":30,"box":{"x":69,"y":606,"width":833,"height":11}},{"id":"8710f8df-b5d5-47b4-bca9-6d1ee840adc6","block_type":"box","text":"charged interest at a variable rate.","page_number":30,"box":{"x":69,"y":621,"width":245,"height":11}},{"id":"0e71822f-136f-4091-b189-1a5e7e3d93b4","block_type":"box","text":"V. Information on Sales Charges and Distribution Related Expenses","page_number":30,"box":{"x":68,"y":651,"width":491,"height":11}},{"id":"326a63f1-a70b-4bbc-902f-b06c5d5abb7a","block_type":"box","text":"Set for th below is information on sales charges (including any contingent deferred sales charges (“CDSCs”))","page_number":30,"box":{"x":102,"y":674,"width":773,"height":11}},{"id":"6614e7f5-3911-4da0-941a-da1aa31d38a2","block_type":"box","text":"received by the Fund, including the amounts paid to affiliates of BlackRock (“affiliates”) for the periods shown.","page_number":30,"box":{"x":69,"y":689,"width":788,"height":11}},{"id":"b44ad9ed-7f7e-4d38-bd79-f4c5d09524a8","block_type":"box","text":"BlackRock Investments, LLC (“BRIL” or the “Distributor”) acts as the Fund’s sole distributor.","page_number":30,"box":{"x":70,"y":704,"width":656,"height":11}},{"id":"5ad5d5c8-44f2-4462-b5e2-910dead04537","block_type":"box","text":"Investor A Shares","page_number":30,"box":{"x":656,"y":732,"width":103,"height":8}},{"id":"77b1b1b9-15cf-4a7c-91b0-1047513fb84b","block_type":"box","text":"Gross","page_number":30,"box":{"x":521,"y":758,"width":32,"height":7}},{"id":"7b3dcd46-e674-4472-a128-eadc8807f3b1","block_type":"box","text":"Sales","page_number":30,"box":{"x":521,"y":768,"width":31,"height":7}},{"id":"7c8b8049-366c-4829-a3d0-b1ec9cd33f90","block_type":"box","text":"Charges","page_number":30,"box":{"x":513,"y":778,"width":48,"height":9}},{"id":"62b34101-c514-4586-9e97-753519daab7d","block_type":"box","text":"Collected","page_number":30,"box":{"x":510,"y":789,"width":54,"height":7}},{"id":"1959e58b-70a8-476b-870f-77102970d89f","block_type":"box","text":"Sales Charges","page_number":30,"box":{"x":598,"y":768,"width":84,"height":9}},{"id":"32cf8ce1-e0c2-4aa0-8107-6ec3bdf1f3da","block_type":"box","text":"Retained by","page_number":30,"box":{"x":606,"y":778,"width":69,"height":9}},{"id":"ba169b8d-2a6b-45ee-be5e-428ad3aacca7","block_type":"box","text":"BRIL","page_number":30,"box":{"x":627,"y":789,"width":27,"height":7}},{"id":"c465e648-a0d7-4f8a-bff4-341a9e0be93f","block_type":"box","text":"Sales Charges","page_number":30,"box":{"x":711,"y":768,"width":84,"height":9}},{"id":"cc3aa826-da6d-4c2a-b9bb-515594c0534a","block_type":"box","text":"Paid To","page_number":30,"box":{"x":733,"y":778,"width":41,"height":8}},{"id":"c4567659-772a-452c-b064-cea7145709f2","block_type":"box","text":"Affiliates","page_number":30,"box":{"x":727,"y":788,"width":52,"height":8}},{"id":"b171b07d-1bb1-46a4-ae9e-66cc8e854a9a","block_type":"box","text":"CDSCs","page_number":30,"box":{"x":847,"y":748,"width":40,"height":7}},{"id":"b56142a5-ae91-4d6f-80e4-0dd0e5272c61","block_type":"box","text":"Received on","page_number":30,"box":{"x":832,"y":758,"width":70,"height":7}},{"id":"f7af170a-ca6a-4129-a8e5-a0209b453018","block_type":"box","text":"Redemption of","page_number":30,"box":{"x":826,"y":768,"width":84,"height":9}},{"id":"6b5b62ce-f57c-4019-99d9-36c106544217","block_type":"box","text":"Load-Waived","page_number":30,"box":{"x":832,"y":778,"width":71,"height":8}},{"id":"d83d406e-6cc1-4d50-8625-6f87bf3ae686","block_type":"box","text":"Shares","page_number":30,"box":{"x":847,"y":789,"width":40,"height":7}},{"id":"92672d97-b24a-4cf5-ade6-771769fb3bc2","block_type":"box","text":"Fiscal Year Ended May 31, 2026 . . . . . . . . . . . . . . . . . . . . . $13,861 $1,077 $1,077 $ 482","page_number":30,"box":{"x":70,"y":806,"width":828,"height":11}},{"id":"5d8bb371-1574-49b7-90d6-3bab72e68888","block_type":"box","text":"Fiscal Year Ended May 31, 2025 . . . . . . . . . . . . . . . . . . . . . $16,543 $1,094 $1,094 $ 3,713","page_number":30,"box":{"x":70,"y":821,"width":828,"height":11}},{"id":"9c92d4ac-25de-4b1f-8730-926bd6cfe4c8","block_type":"box","text":"Fiscal Year Ended May 31, 2024 . . . . . . . . . . . . . . . . . . . . . $38,461 $2,484 $2,484 $10,064","page_number":30,"box":{"x":70,"y":836,"width":828,"height":12}},{"id":"acf01eee-09dd-413c-bd79-2c6761d86853","block_type":"box","text":"I-21","page_number":30,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"0749844d-e598-462e-9bab-9591e8e3d0fd","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":30,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e288b345-6b81-4b7d-813e-7477615fe46c","block_type":"box","text":"Investor C Shares","page_number":31,"box":{"x":760,"y":49,"width":103,"height":7}},{"id":"37aa123b-73bd-4d84-8c9a-ff948da0cccb","block_type":"box","text":"CDSCs Received","page_number":31,"box":{"x":713,"y":65,"width":97,"height":7}},{"id":"2be62b65-2bdc-4e72-a845-5a316397baed","block_type":"box","text":"by BRIL","page_number":31,"box":{"x":740,"y":75,"width":44,"height":9}},{"id":"2f816db0-7061-47b2-9a35-4ef4dbc0515d","block_type":"box","text":"CDSCs Paid","page_number":31,"box":{"x":840,"y":65,"width":69,"height":7}},{"id":"ebeffeca-93eb-4748-9a04-f78de446715a","block_type":"box","text":"to Affiliates","page_number":31,"box":{"x":841,"y":75,"width":68,"height":7}},{"id":"685b805c-b60d-439f-85d8-6412c8a4a00c","block_type":"box","text":"Fiscal Year Ended May 31, 2026 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":31,"box":{"x":70,"y":93,"width":474,"height":11}},{"id":"55cbbe20-e724-4f8d-8395-9c5356106f9a","block_type":"box","text":". . . . . . . . . . . . . . . . . $ 100 $ 100","page_number":31,"box":{"x":550,"y":92,"width":351,"height":10}},{"id":"83c6357d-f3dd-4232-a8bb-bbf00e1f6f1d","block_type":"box","text":"Fiscal Year Ended May 31, 2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":31,"box":{"x":70,"y":108,"width":474,"height":11}},{"id":"fcadfbe5-d9d2-4387-9d9a-2ec02669ed38","block_type":"box","text":". . . . . . . . . . . . . . . . . $ 433 $ 433","page_number":31,"box":{"x":550,"y":107,"width":351,"height":10}},{"id":"502922bb-3cd9-4f4d-837a-e6b43846bbe2","block_type":"box","text":"Fiscal Year Ended May 31, 2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":31,"box":{"x":70,"y":123,"width":474,"height":11}},{"id":"50939f29-3080-4f53-91ee-b05df381a3ad","block_type":"box","text":". . . . . . . . . . . . . . . . . $2,100 $2,100","page_number":31,"box":{"x":550,"y":122,"width":351,"height":11}},{"id":"5b7860a4-5070-48b8-ae44-5935577c52ea","block_type":"box","text":"The table below provides information for the fiscal year ended May 31, 2026 about the 12b-1 fees the Fund paid","page_number":31,"box":{"x":101,"y":147,"width":805,"height":11}},{"id":"5fe4fe29-f1f3-4037-b2f1-4818174e3469","block_type":"box","text":"to BRIL under the Fund’s 12b-1 plan. A por tion of the fees collected by BRIL were paid to affiliates for providing","page_number":31,"box":{"x":68,"y":162,"width":796,"height":11}},{"id":"1a830d3f-6726-44d5-83b1-6a8f84cce2a2","block_type":"box","text":"shareholder servicing activities for Investor A Shares and for providing shareholder servicing and distribution-related","page_number":31,"box":{"x":69,"y":177,"width":826,"height":11}},{"id":"061b71fa-d6e3-4a85-96a2-adea40c4d148","block_type":"box","text":"activities and services for Investor C Shares.","page_number":31,"box":{"x":69,"y":192,"width":318,"height":9}},{"id":"b536160b-e3e6-41be-8c78-a027d7abbe71","block_type":"box","text":"Class Name","page_number":31,"box":{"x":69,"y":220,"width":68,"height":7}},{"id":"1d2a8d2c-989b-41f6-b4d5-841083867ac9","block_type":"box","text":"Fees Paid to BRIL","page_number":31,"box":{"x":806,"y":220,"width":103,"height":7}},{"id":"8fc972b6-e9c4-4f90-ae5c-46b2e5ac8d35","block_type":"box","text":"Investor A Shares .","page_number":31,"box":{"x":70,"y":238,"width":134,"height":9}},{"id":"f185f793-1eef-4116-a850-ee3d260fc720","block_type":"box","text":"......................................................................","page_number":31,"box":{"x":210,"y":245,"width":564,"height":2}},{"id":"45648802-c7c6-4bb3-8a7e-7060220f87f7","block_type":"box","text":"$249,903","page_number":31,"box":{"x":822,"y":237,"width":71,"height":12}},{"id":"f2e941d0-5855-4fce-99d7-3ecce533431a","block_type":"box","text":"Investor C Shares . . .","page_number":31,"box":{"x":70,"y":253,"width":150,"height":9}},{"id":"a1eaa34d-6bdd-46d8-83d5-7d2a3ef99360","block_type":"box","text":"....................................................................","page_number":31,"box":{"x":226,"y":261,"width":548,"height":1}},{"id":"1ec6a74f-4ee5-45ce-b512-7e770f171697","block_type":"box","text":"$177,737","page_number":31,"box":{"x":822,"y":252,"width":71,"height":12}},{"id":"703a9d16-f19c-49be-9edd-d2ce63e4d6e1","block_type":"box","text":"VI. Computation of Offering Price Per Share","page_number":31,"box":{"x":68,"y":285,"width":318,"height":11}},{"id":"fe8a38b5-8146-4951-b446-9f0bd9a4c3ce","block_type":"box","text":"An illustration of the computation of the public offering price of the Investor A Shares of the Fund based on the","page_number":31,"box":{"x":101,"y":307,"width":790,"height":12}},{"id":"91a4e058-b571-48d2-8098-aabda88d806c","block_type":"box","text":"value of the Fund’s Investor A Shares’ net assets and the number of Investor A Shares outstanding on","page_number":31,"box":{"x":68,"y":322,"width":731,"height":12}},{"id":"17a2370b-d71a-428d-ac59-8ffd6bf3926f","block_type":"box","text":"May 31, 2026, is set for th below.","page_number":31,"box":{"x":70,"y":338,"width":238,"height":11}},{"id":"2ca69f7d-4515-4b00-a21e-0b8087c87b9e","block_type":"box","text":"Investor A Shares","page_number":31,"box":{"x":807,"y":366,"width":102,"height":7}},{"id":"3cc5be84-f97c-43d0-8003-851055074986","block_type":"box","text":"Net Assets","page_number":31,"box":{"x":70,"y":384,"width":76,"height":9}},{"id":"39d5eb73-d7a9-4f74-9cbf-f8ce7e99750b","block_type":"box","text":".............................................................................","page_number":31,"box":{"x":154,"y":391,"width":621,"height":1}},{"id":"8d8812af-ce86-436f-a605-c907a16fe886","block_type":"box","text":"$97,332,915","page_number":31,"box":{"x":810,"y":383,"width":96,"height":11}},{"id":"8f1fd4c6-3553-4627-a28d-19d6d6a03f83","block_type":"box","text":"Number of Shares Outstanding . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":31,"box":{"x":70,"y":399,"width":444,"height":11}},{"id":"ddd8f0a9-06cf-4a08-b730-abb18ca03589","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,","page_number":31,"box":{"x":521,"y":399,"width":321,"height":10}},{"id":"f79fc1a2-68c0-4a6d-8e3a-b10a85681230","block_type":"box","text":"699,291","page_number":31,"box":{"x":844,"y":399,"width":62,"height":10}},{"id":"d143b8a1-b4f7-455b-b36f-4ca08b41ef1b","block_type":"box","text":"Net Asset Value Per Share (net assets divided by number of shares outstanding) .","page_number":31,"box":{"x":70,"y":414,"width":583,"height":11}},{"id":"8774758a-878b-4ec1-941b-c90f68d18ff8","block_type":"box","text":"...............","page_number":31,"box":{"x":659,"y":421,"width":116,"height":2}},{"id":"eced9310-4059-42ed-aa38-09450f999b42","block_type":"box","text":"$10.04","page_number":31,"box":{"x":854,"y":413,"width":52,"height":11}},{"id":"13eb89f5-4f74-4948-941f-cb79f549046d","block_type":"box","text":"Sales Charge (5.25% of offering price; 5.54% of net asset value per share)","page_number":31,"box":{"x":69,"y":429,"width":534,"height":11}},{"id":"aa5bd5c5-86ae-4dc7-af90-da8af7e780ac","block_type":"box","text":"1","page_number":31,"box":{"x":604,"y":429,"width":4,"height":5}},{"id":"82842f21-0a8f-4b12-8522-efe74b0d9f09","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . 0.55","page_number":31,"box":{"x":611,"y":429,"width":295,"height":9}},{"id":"d3c63a7d-6d5d-45c2-9a2a-87b83901d847","block_type":"box","text":"Offering Price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":31,"box":{"x":69,"y":448,"width":706,"height":12}},{"id":"9c15abb4-6343-4e0f-8730-07357352d951","block_type":"box","text":"$10.59","page_number":31,"box":{"x":854,"y":448,"width":52,"height":10}},{"id":"a5e8eeba-6054-48ba-8eb5-cdf505c7bdc9","block_type":"box","text":"1","page_number":31,"box":{"x":69,"y":481,"width":3,"height":3}},{"id":"965059b2-ebeb-4cbe-a33d-17a9058adfa3","block_type":"box","text":"Rounded to the nearest one-hundredth percent; assumes maximum sales charge is applicable.","page_number":31,"box":{"x":94,"y":481,"width":541,"height":8}},{"id":"04dc1bfb-0a8e-4fbe-b5f9-c4c9c80f9951","block_type":"box","text":"The offering price for the Fund’s other share classes is equal to the share class’s net asset value computed as","page_number":31,"box":{"x":101,"y":501,"width":796,"height":12}},{"id":"7a08a432-31a7-40c8-9eb5-7c7e703d4c1f","block_type":"box","text":"set for th above for the Investor A Shares. Though not subject to a sales charge, cer tain share classes may be","page_number":31,"box":{"x":69,"y":516,"width":786,"height":12}},{"id":"e4b7fabe-ffab-422e-805f-9c46371a5fda","block_type":"box","text":"subject to a CDSC on redemption. For more information on the purchasing and valuation of shares, please see","page_number":31,"box":{"x":69,"y":532,"width":790,"height":11}},{"id":"ae658baf-4cfa-4de5-89e5-a701f11bc744","block_type":"box","text":"“Purchase of Shares” and “Pricing of Shares” in Par t II of this SAI.","page_number":31,"box":{"x":70,"y":547,"width":473,"height":11}},{"id":"ab58a619-d5f5-435d-a454-bea5dac0a6b6","block_type":"box","text":"VII. Portfolio Transactions and Brokerage","page_number":31,"box":{"x":68,"y":577,"width":302,"height":11}},{"id":"db14193b-c8e6-446a-9fb1-8d2b131074bd","block_type":"box","text":"See “Por tfolio Transactions and Brokerage” in Par t II of this SAI for more information.","page_number":31,"box":{"x":102,"y":600,"width":609,"height":11}},{"id":"1eb3d211-ddf5-46dd-a4d2-3205252b7521","block_type":"box","text":"Information about the brokerage commissions paid by the Fund for the periods shown is set for th in the following","page_number":31,"box":{"x":102,"y":622,"width":807,"height":12}},{"id":"9f475759-e3a9-4083-9790-a1ef91cabc38","block_type":"box","text":"table:","page_number":31,"box":{"x":68,"y":638,"width":39,"height":8}},{"id":"2a5b5288-f995-4e13-88a1-a56b71ac61bc","block_type":"box","text":"Aggregate Brokerage","page_number":31,"box":{"x":620,"y":666,"width":125,"height":9}},{"id":"e701996a-909c-42ad-9376-f4a5d74d7fbc","block_type":"box","text":"Commissions Paid","page_number":31,"box":{"x":629,"y":676,"width":106,"height":7}},{"id":"e9e50390-0664-4231-b6b1-e77fe5750e8d","block_type":"box","text":"Brokerage Commission","page_number":31,"box":{"x":775,"y":666,"width":134,"height":9}},{"id":"5e5b967d-3412-4a9c-8543-0dcd8ae3cf24","block_type":"box","text":"Paid to Affiliates","page_number":31,"box":{"x":794,"y":676,"width":96,"height":7}},{"id":"4d924707-5866-428c-acae-ca2730a6a302","block_type":"box","text":"Fiscal Year Ended May 31, 2026 .","page_number":31,"box":{"x":70,"y":694,"width":242,"height":11}},{"id":"a3d69f7b-ca0a-4d13-97b2-c843b3a379c2","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,","page_number":31,"box":{"x":318,"y":693,"width":343,"height":11}},{"id":"d7562301-5c92-496d-b174-4c4aed8ef9c7","block_type":"box","text":"202,930 $0","page_number":31,"box":{"x":664,"y":693,"width":187,"height":11}},{"id":"40819396-3ddf-4d70-895e-93dbbedb45cf","block_type":"box","text":"Fiscal Year Ended May 31, 2025 .","page_number":31,"box":{"x":70,"y":709,"width":242,"height":11}},{"id":"29ff3090-4547-4cf6-a632-d0aea3a7baad","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,","page_number":31,"box":{"x":318,"y":708,"width":343,"height":11}},{"id":"48b22791-54a3-4ce9-ae6f-8cbaa1395d11","block_type":"box","text":"530,864 $0","page_number":31,"box":{"x":663,"y":708,"width":188,"height":11}},{"id":"96f81cb4-f553-4df4-9a1f-81ec66c2e78a","block_type":"box","text":"Fiscal Year Ended May 31, 2024 .","page_number":31,"box":{"x":70,"y":724,"width":242,"height":11}},{"id":"18de34f0-daf8-46e2-9ee7-a817c8878707","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,","page_number":31,"box":{"x":318,"y":723,"width":343,"height":11}},{"id":"d02ca3e5-a7b1-49fe-ac5a-0001ed5998d9","block_type":"box","text":"038,554 $0","page_number":31,"box":{"x":663,"y":723,"width":188,"height":11}},{"id":"4fd2f34c-4455-45b4-a907-25f053f14eab","block_type":"box","text":"The following table shows the dollar amount of brokerage commissions paid to brokers for providing Section","page_number":31,"box":{"x":101,"y":748,"width":770,"height":11}},{"id":"888c9d84-acad-4cf2-a42a-7d6c9af82b0a","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":31,"box":{"x":69,"y":763,"width":814,"height":11}},{"id":"6e1e1e1e-8ce3-42d6-953a-39cbd4478683","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":31,"box":{"x":68,"y":778,"width":829,"height":11}},{"id":"46f8609f-4a7e-4740-ac0b-b467c3c1972e","block_type":"box","text":"Section 28(e) research/brokerage services was not necessarily a factor in the placement of all brokerage business","page_number":31,"box":{"x":69,"y":793,"width":822,"height":11}},{"id":"ebefed40-10e3-4c77-a5f8-d9978191f13b","block_type":"box","text":"with such brokers.","page_number":31,"box":{"x":68,"y":808,"width":130,"height":9}},{"id":"7d5250be-e3ae-4ac6-be58-906ddccc8335","block_type":"box","text":"Amount of Commissions","page_number":31,"box":{"x":333,"y":836,"width":141,"height":8}},{"id":"c8d3f67d-a106-4136-962a-232dd92a80f3","block_type":"box","text":"Paid to Brokers for Providing","page_number":31,"box":{"x":320,"y":846,"width":168,"height":9}},{"id":"0364a784-42a5-4d25-b64e-a958a7431104","block_type":"box","text":"28(e) Eligible Research Services","page_number":31,"box":{"x":308,"y":857,"width":191,"height":8}},{"id":"163f98db-f258-458e-821c-79906231f33c","block_type":"box","text":"Amount of Brokerage","page_number":31,"box":{"x":545,"y":846,"width":124,"height":9}},{"id":"375e6688-e2b2-47ea-91b7-43c76ecf02ad","block_type":"box","text":"Transactions Involved","page_number":31,"box":{"x":544,"y":857,"width":125,"height":7}},{"id":"3d514c8a-b074-4b7f-96f5-a39c699c4b5f","block_type":"box","text":"$0 $0","page_number":31,"box":{"x":395,"y":874,"width":221,"height":10}},{"id":"2f36f72b-c16e-4b25-b4dc-72d0a9c5dcdf","block_type":"box","text":"I-22","page_number":31,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"34bf6f09-eb05-4d61-8da6-a6b663b6f0cc","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":31,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e0f7ceea-1c76-49b1-9c38-5b8606a93f5c","block_type":"box","text":"As of May 31, 2026, the Fund held no securities of its regular brokers or dealers (as defined in Rule 10b-1 under","page_number":32,"box":{"x":101,"y":45,"width":808,"height":11}},{"id":"b66433cc-be8f-46f2-95b8-6247455deae9","block_type":"box","text":"the Investment Company Act) or their parents whose shares were purchased during the fiscal year ended","page_number":32,"box":{"x":68,"y":60,"width":748,"height":11}},{"id":"fe25e0e4-6660-44f9-b245-755563877df8","block_type":"box","text":"May 31, 2026.","page_number":32,"box":{"x":70,"y":75,"width":104,"height":11}},{"id":"4c662b59-88ea-4370-a68c-12db6005de21","block_type":"box","text":"Securities Lending","page_number":32,"box":{"x":68,"y":105,"width":135,"height":11}},{"id":"b32f54d9-0cf9-4edd-8065-6fd772776127","block_type":"box","text":"To the extent that the Fund engages in securities lending, the Fund conducts its securities lending pursuant to an","page_number":32,"box":{"x":101,"y":128,"width":807,"height":11}},{"id":"aea99d47-be3c-4eca-921f-524132587e2e","block_type":"box","text":"exemptive order from the Commission permitting it to lend por tfolio securities to borrowers affiliated with the Fund","page_number":32,"box":{"x":69,"y":143,"width":817,"height":11}},{"id":"7e0bcf78-91b4-4ffe-8f81-a6f7128b3ce9","block_type":"box","text":"and to retain an affiliate of the Fund as securities lending agent. To the extent that the Fund engages in securities","page_number":32,"box":{"x":69,"y":158,"width":813,"height":11}},{"id":"a569c361-26be-4c3d-9adf-c923350ca2fc","block_type":"box","text":"lending, BlackRock Investment Management, LLC (“BIM”) acts as securities lending agent for the Fund, subject to the","page_number":32,"box":{"x":70,"y":173,"width":838,"height":11}},{"id":"2a83feec-d411-4464-a8f1-7010ffc5b065","block_type":"box","text":"overall supervision of the Manager, pursuant to a written agreement (the “Securities Lending Agency Agreement”).","page_number":32,"box":{"x":69,"y":188,"width":813,"height":12}},{"id":"f3cb01f8-19db-4801-bbe4-5ae3e3808268","block_type":"box","text":"BIM administers the lending program in accordance with guidelines approved by the Board.","page_number":32,"box":{"x":70,"y":204,"width":646,"height":11}},{"id":"a5638fcc-2674-476f-bcaa-3d3ae1ccbc74","block_type":"box","text":"The Fund retains a por tion of the securities lending income and remits the remaining por tion to BIM as","page_number":32,"box":{"x":101,"y":226,"width":735,"height":11}},{"id":"ce5597d9-3c4e-4938-9342-94c81876b453","block_type":"box","text":"compensation for its services as securities lending agent. Securities lending income is generally equal to the total of","page_number":32,"box":{"x":69,"y":241,"width":834,"height":11}},{"id":"08a2d020-3e3a-4dd1-a6f1-2b4d524d1f6a","block_type":"box","text":"income earned from the reinvestment of cash collateral (and excludes collateral investment fees as defined below),","page_number":32,"box":{"x":70,"y":256,"width":822,"height":11}},{"id":"2993d0da-4707-44e3-b514-fbad2cee87b6","block_type":"box","text":"and any fees or other payments to and from borrowers of securities. As securities lending agent, BIM bears all","page_number":32,"box":{"x":69,"y":271,"width":787,"height":12}},{"id":"3828d603-a328-4c8c-b150-652594989098","block_type":"box","text":"operational costs directly related to securities lending. The Fund is responsible for fees in connection with the","page_number":32,"box":{"x":69,"y":286,"width":783,"height":12}},{"id":"6b8e94c3-cbc2-4fac-8596-1bb97a6c98b5","block_type":"box","text":"investment of cash collateral received for securities on loan in a money market fund managed by BlackRock (the","page_number":32,"box":{"x":70,"y":302,"width":800,"height":11}},{"id":"3a7e2aef-b3d8-4e1c-a42d-422da0115ef3","block_type":"box","text":"“collateral investment fees”); however, the securities lending agent has agreed to reduce the amount of securities","page_number":32,"box":{"x":70,"y":317,"width":813,"height":11}},{"id":"ad0a3bd5-81c6-47e0-b840-ed57d1333131","block_type":"box","text":"lending income it receives in order to effectively limit the collateral investment fees a Fund bears to an annual rate of","page_number":32,"box":{"x":70,"y":332,"width":836,"height":11}},{"id":"092cba9e-1cf8-4cf2-b357-8f4dc0fe4c2d","block_type":"box","text":"0.04%. Such money market fund shares will not be subject to a sales load, distribution fee or service fee.","page_number":32,"box":{"x":69,"y":347,"width":755,"height":11}},{"id":"51eb98fb-adbd-4291-b235-45e5b3a96f8d","block_type":"box","text":"To the extent that the Fund invests cash collateral in a non-government money market fund, the Fund may be","page_number":32,"box":{"x":101,"y":370,"width":776,"height":11}},{"id":"8b05e976-da1b-4959-aa7b-4edcfb4b4fa5","block_type":"box","text":"subject to a discretionary liquidity fee of up to 2% on all redemptions. Discretionary liquidity fees may be imposed or","page_number":32,"box":{"x":69,"y":385,"width":831,"height":11}},{"id":"a5b7ac3b-994f-4f98-a721-26f5adb03749","block_type":"box","text":"terminated at any time at the discretion of the board of directors of the money market fund, or its delegate, if it is","page_number":32,"box":{"x":68,"y":400,"width":812,"height":11}},{"id":"495cd7f6-9e63-44a5-8676-e199be8790f0","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":32,"box":{"x":69,"y":415,"width":799,"height":11}},{"id":"83f0344d-5bac-4a68-96b9-9b0c40cd3850","block_type":"box","text":"Additionally, the Fund will be subject to a mandatory liquidity fee if the money market fund’s total net redemptions on","page_number":32,"box":{"x":68,"y":430,"width":835,"height":11}},{"id":"13ab6678-4aa7-4649-9295-e141ff88d236","block_type":"box","text":"a single day exceed 5% of the money market fund’s net assets, unless the liquidity costs are de minimis (i.e., less","page_number":32,"box":{"x":69,"y":445,"width":818,"height":12}},{"id":"5190643d-48de-4060-9337-e4425b4d5eed","block_type":"box","text":"than one basis point (0.01%)). The money market fund will determine the size of the mandatory liquidity fee by","page_number":32,"box":{"x":68,"y":460,"width":789,"height":12}},{"id":"c5eaedb7-e5b0-487f-8103-76f6a2f02096","block_type":"box","text":"making a good faith estimate of cer tain costs the money market fund would incur if it were to sell a pro rata amount","page_number":32,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"25590ea9-8930-4025-bdc0-b65d1511a388","block_type":"box","text":"of each security in the por tfolio to satisfy the amount of net redemptions on that day. There is no limit to the size of a","page_number":32,"box":{"x":69,"y":491,"width":839,"height":11}},{"id":"4751b2c4-a0dd-4bff-903a-f427744ec638","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":32,"box":{"x":69,"y":506,"width":802,"height":11}},{"id":"f60fa81a-fa1c-41d8-9d14-56c0a68537a9","block_type":"box","text":"por tfolio security in good faith and suppor ted by data, it is required to apply a default liquidity fee of 1% on the value","page_number":32,"box":{"x":70,"y":521,"width":830,"height":11}},{"id":"e31ad23e-7adf-48e9-87c6-406fa7556c10","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":32,"box":{"x":69,"y":536,"width":838,"height":11}},{"id":"8b4ece49-8ffa-4335-aa0c-706a4d6a3cc6","block_type":"box","text":"Fund’s returns on securities lending.","page_number":32,"box":{"x":70,"y":551,"width":258,"height":11}},{"id":"fdcff439-2261-4575-b4fc-4432429cfaa6","block_type":"box","text":"Under the securities lending program, the Fund is categorized into one of several specific asset classes. The","page_number":32,"box":{"x":102,"y":574,"width":774,"height":11}},{"id":"89275884-ee28-4ba6-8d46-4f7f345d2882","block_type":"box","text":"determination of the Fund’s asset class category (fixed-income, domestic equity, international equity, or fund of","page_number":32,"box":{"x":69,"y":589,"width":794,"height":11}},{"id":"a07a93a2-3c6f-4c91-a4d6-97fe1350bf6a","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":32,"box":{"x":68,"y":604,"width":809,"height":11}},{"id":"acb040ac-d3da-4f5d-8338-a6c25163d49c","block_type":"box","text":"Corporation and BIM.","page_number":32,"box":{"x":69,"y":619,"width":149,"height":11}},{"id":"7d6dd564-750c-4df4-9493-c6eb3e234f7e","block_type":"box","text":"Pursuant to the securities lending agreement effective January 1, 2026: (i) the Fund retains 81% of securities","page_number":32,"box":{"x":102,"y":642,"width":783,"height":11}},{"id":"6e0c37d1-4f1e-44bd-8f08-127e9e1e01b2","block_type":"box","text":"lending income (which excludes collateral investment fees); and (ii) this amount can never be less than 70% of the","page_number":32,"box":{"x":70,"y":657,"width":815,"height":11}},{"id":"3afffb07-bc18-4e5b-840f-70d4d6ff4f57","block_type":"box","text":"sum of securities lending income plus collateral investment fees.","page_number":32,"box":{"x":69,"y":672,"width":463,"height":11}},{"id":"3c7e26a8-f85a-4036-8044-5854d95dc0a0","block_type":"box","text":"In addition, commencing the business day following the date that the aggregate securities lending income","page_number":32,"box":{"x":102,"y":695,"width":753,"height":11}},{"id":"a8b06283-f576-4855-8deb-07bddb08be8b","block_type":"box","text":"earned across the BlackRock Multi-Asset Complex in a calendar year exceeds specified thresholds, the 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arrangement.","page_number":32,"box":{"x":102,"y":778,"width":683,"height":11}},{"id":"e23eb31d-3c58-44b6-a3d3-a5d3217819a6","block_type":"box","text":"The services provided to the Fund by BIM, in the most recent fiscal year ended May 31, 2026, primarily included","page_number":32,"box":{"x":101,"y":801,"width":803,"height":11}},{"id":"1b7e3ab8-140d-44f1-ad1f-ad690c499d2a","block_type":"box","text":"the following:","page_number":32,"box":{"x":68,"y":816,"width":93,"height":11}},{"id":"a0830c79-1fae-4ae9-8a32-d9190a49f7f0","block_type":"box","text":"(1) selecting borrowers from an approved list of borrowers and executing a securities lending agreement as agent","page_number":32,"box":{"x":69,"y":836,"width":818,"height":11}},{"id":"b237600c-9d83-484e-96fb-47e24fcdde8b","block_type":"box","text":"on behalf of the Fund with each such borrower;","page_number":32,"box":{"x":102,"y":851,"width":333,"height":10}},{"id":"93948449-b1c1-48da-8511-f05b76468cb5","block_type":"box","text":"(2) negotiating the terms of securities loans, including the amount of fees;","page_number":32,"box":{"x":69,"y":871,"width":538,"height":11}},{"id":"7db4976f-cfa9-4f75-87fc-1fc35ccc61ab","block_type":"box","text":"(3) directing the delivery of loaned securities;","page_number":32,"box":{"x":69,"y":891,"width":330,"height":12}},{"id":"f15742a1-d7ab-42f7-9646-71299d56e067","block_type":"box","text":"I-23","page_number":32,"box":{"x":476,"y":943,"width":26,"height":9}},{"id":"1d4f0f30-899b-4600-8a24-192d2d6a5e09","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":32,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"87d05fbb-775d-46dc-bab8-eef433c89e03","block_type":"box","text":"(4) monitoring the daily value of the loaned securities and directing the payment of additional collateral or the return","page_number":33,"box":{"x":69,"y":45,"width":834,"height":11}},{"id":"9bcd8ad9-3129-4421-9bde-ba325607aa40","block_type":"box","text":"of excess collateral, as necessary;","page_number":33,"box":{"x":102,"y":60,"width":246,"height":11}},{"id":"de65463f-5aa0-4eec-88fd-5178ed359e41","block_type":"box","text":"(5) investing cash collateral received in connection with any loaned securities;","page_number":33,"box":{"x":69,"y":80,"width":562,"height":11}},{"id":"5a343b08-5706-4587-a4f6-de3bc6f98775","block_type":"box","text":"(6) monitoring distributions on loaned securities (for example, interest and dividend activity);","page_number":33,"box":{"x":69,"y":100,"width":665,"height":11}},{"id":"22ce7d1d-361a-4148-b356-82c221f240ec","block_type":"box","text":"(7) in the event of default by a borrower with respect to any securities loan, using the collateral or the proceeds of","page_number":33,"box":{"x":69,"y":120,"width":822,"height":12}},{"id":"aef9a277-0761-40cb-9af8-931928cf9698","block_type":"box","text":"the liquidation of collateral to purchase replacement securities of the same issue, type, class and series as that","page_number":33,"box":{"x":101,"y":135,"width":803,"height":11}},{"id":"11833f17-f740-49f1-aa3c-347748b3ffa1","block_type":"box","text":"of the loaned securities; and","page_number":33,"box":{"x":102,"y":150,"width":203,"height":11}},{"id":"419e8d23-96e9-4600-b7ea-d6c06df6a940","block_type":"box","text":"(8) terminating securities loans and arranging for the return of loaned securities to the Fund at loan termination.","page_number":33,"box":{"x":69,"y":171,"width":808,"height":11}},{"id":"ce47c7ce-ddd4-4a44-9312-d5b745be20db","block_type":"box","text":"The following table shows the dollar amounts of income and fees/compensation related to the securities lending","page_number":33,"box":{"x":101,"y":193,"width":805,"height":12}},{"id":"947e1724-8081-4a88-9b22-1f741d60fcfa","block_type":"box","text":"activities of the Fund during its most recent fiscal year ended May 31, 2026.","page_number":33,"box":{"x":69,"y":208,"width":546,"height":12}},{"id":"28da2442-9775-45c6-b122-d6628b919c63","block_type":"box","text":"Gross income from securities lending activities","page_number":33,"box":{"x":69,"y":236,"width":343,"height":11}},{"id":"3b955192-3ef7-4e70-acac-40b33e2f5cfa","block_type":"box","text":"................................................","page_number":33,"box":{"x":416,"y":244,"width":385,"height":1}},{"id":"dcd181ce-03f0-45df-a2fa-af477d045ed8","block_type":"box","text":"7,798,005","page_number":33,"box":{"x":832,"y":236,"width":77,"height":11}},{"id":"0522a910-dc0d-4ea1-965d-e2e5df21bbf3","block_type":"box","text":"Fees and/or compensation for securities lending activities and related services","page_number":33,"box":{"x":70,"y":256,"width":565,"height":11}},{"id":"99bec969-6e6a-4749-a90a-c189f25143a0","block_type":"box","text":"Securities lending income paid to BIM for services as securities lending agent . . . . .","page_number":33,"box":{"x":79,"y":271,"width":599,"height":11}},{"id":"e6494d44-c80e-4607-89d5-65615c205de4","block_type":"box","text":"............... $","page_number":33,"box":{"x":685,"y":270,"width":145,"height":11}},{"id":"3a33cd6a-917b-43a8-93d9-f8b56bacdeed","block_type":"box","text":"185,564","page_number":33,"box":{"x":847,"y":271,"width":62,"height":10}},{"id":"ba03981b-1fd6-4d11-850c-dc609b1bae90","block_type":"box","text":"Cash collateral management expenses not included in securities lending income paid to BIM . .","page_number":33,"box":{"x":79,"y":286,"width":673,"height":11}},{"id":"2fe0964e-b36c-4c46-8111-75775cb64c3b","block_type":"box","text":". . . . . . $ 71,438","page_number":33,"box":{"x":758,"y":285,"width":151,"height":11}},{"id":"1f7b6b6c-3566-4548-8ab5-131532ea279b","block_type":"box","text":"Administrative fees not included in securities lending income paid to BIM . . . .","page_number":33,"box":{"x":78,"y":301,"width":551,"height":11}},{"id":"8e0970cb-17de-4c2d-a3ed-1a337f5d954f","block_type":"box","text":"..................... $ 0","page_number":33,"box":{"x":636,"y":300,"width":273,"height":11}},{"id":"00a2e909-e907-49a0-9939-f8ecc879d8b1","block_type":"box","text":"Indemnification fees not included in securities lending income paid to BIM . . . . .","page_number":33,"box":{"x":79,"y":316,"width":567,"height":11}},{"id":"4feb4029-74be-4032-afd0-aa344ac06805","block_type":"box","text":"................... $ 0","page_number":33,"box":{"x":652,"y":315,"width":257,"height":11}},{"id":"43690b18-16bd-4df1-a29b-3508c32edf4a","block_type":"box","text":"Rebates (paid to borrowers) . . . . . . . . . . .","page_number":33,"box":{"x":79,"y":331,"width":289,"height":11}},{"id":"c66fc93d-a54a-4e9c-acee-abe2c28bdaf9","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $6,","page_number":33,"box":{"x":375,"y":331,"width":470,"height":11}},{"id":"7611135e-c625-420c-a0ce-69d285474ac3","block_type":"box","text":"746,341","page_number":33,"box":{"x":847,"y":331,"width":62,"height":11}},{"id":"ba12194c-f856-40ad-9800-c33d5b902a97","block_type":"box","text":"Other fees not included in securities lending income paid to BIM. . . . . . . . . . .","page_number":33,"box":{"x":79,"y":346,"width":542,"height":12}},{"id":"5881c983-a551-4042-9c48-536846daecf4","block_type":"box","text":"...................... $ 0","page_number":33,"box":{"x":628,"y":346,"width":281,"height":10}},{"id":"ef001e8c-be1b-47a7-b1cd-d0687a080d99","block_type":"box","text":"Aggregate fees/compensation for securities lending 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Additional Information","page_number":33,"box":{"x":68,"y":417,"width":195,"height":9}},{"id":"6a29879e-9510-4f5e-b8e0-84a49e3898ef","block_type":"box","text":"Independent Registered Public Accounting Firm.","page_number":33,"box":{"x":102,"y":440,"width":352,"height":11}},{"id":"00762352-1757-4b8d-950a-e55e6023712e","block_type":"box","text":"Deloitte & Touche LLP, with offices located at 115 Federal","page_number":33,"box":{"x":461,"y":440,"width":412,"height":10}},{"id":"13346dd0-711e-4844-a9f1-3baf13fda2cd","block_type":"box","text":"Street, Boston, Massachusetts 02110, serves as the Fund’s independent registered public accounting firm.","page_number":33,"box":{"x":69,"y":455,"width":772,"height":11}},{"id":"6c069a62-32fb-4c37-a1f8-0227cd4bc555","block_type":"box","text":"Counsel.","page_number":33,"box":{"x":101,"y":478,"width":62,"height":8}},{"id":"edbb8689-3e54-4a36-87b7-270650420845","block_type":"box","text":"Ropes & Gray LLP, with offices at 1211 Avenue of the Americas, New York, New York 10036, serves as","page_number":33,"box":{"x":170,"y":477,"width":736,"height":12}},{"id":"429f45ce-70f7-4f72-b6ca-9ec6d9bbad74","block_type":"box","text":"the Fund’s counsel.","page_number":33,"box":{"x":68,"y":493,"width":139,"height":9}},{"id":"e3a77533-bacb-49b7-9521-bd6e8e9808e8","block_type":"box","text":"Description of Shares","page_number":33,"box":{"x":70,"y":523,"width":153,"height":11}},{"id":"59fe1070-f05d-4bcd-a2e1-457a9c5050fa","block_type":"box","text":"The Corporation is a Maryland corporation incorporated on October 20, 1999 as Merrill Lynch Large Cap Series","page_number":33,"box":{"x":101,"y":546,"width":794,"height":11}},{"id":"1ee21559-2646-428f-8f15-b1db66144c92","block_type":"box","text":"Funds, Inc. Effective September 29, 2006, the Corporation changed its name to BlackRock Large Cap Series Funds,","page_number":33,"box":{"x":70,"y":561,"width":827,"height":11}},{"id":"658df1de-e9ae-4727-accc-495217b45ac7","block_type":"box","text":"Inc. The Fund is a series of the Corporation, although the Fund may invest in companies with any market","page_number":33,"box":{"x":70,"y":576,"width":744,"height":11}},{"id":"9eccae32-f7c6-4d8b-8f0b-9e031c140ff7","block_type":"box","text":"capitalization. Currently, the Corporation is comprised of three series: BlackRock Advantage Large Cap Value Fund,","page_number":33,"box":{"x":69,"y":591,"width":815,"height":11}},{"id":"0e30155d-2afc-443b-8d3e-d46f1771277d","block_type":"box","text":"BlackRock Advantage Large Cap Core Fund and BlackRock Event Driven Equity Fund. The Corporation has an","page_number":33,"box":{"x":70,"y":606,"width":770,"height":11}},{"id":"dca993db-7f7a-4848-8a7f-418e754622cb","block_type":"box","text":"authorized capital of 11,650,000,000 shares of Common Stock, par value $0.10 per share. The number of","page_number":33,"box":{"x":69,"y":620,"width":767,"height":12}},{"id":"d9975296-d15e-433e-98de-c8b1d838ddad","block_type":"box","text":"authorized shares of each series of the Corporation are as follows:","page_number":33,"box":{"x":69,"y":636,"width":475,"height":11}},{"id":"631b1493-1e8b-4e06-9c0b-3bb63227be41","block_type":"box","text":"Common Stock","page_number":33,"box":{"x":69,"y":675,"width":88,"height":7}},{"id":"6e3411ca-12cb-426e-aa4a-feafa681c1e4","block_type":"box","text":"BlackRock Advantage","page_number":33,"box":{"x":622,"y":665,"width":129,"height":8}},{"id":"95186f31-7335-4497-82a6-f0abccbcb7b4","block_type":"box","text":"Large Cap Value Fund","page_number":33,"box":{"x":624,"y":675,"width":125,"height":8}},{"id":"71174982-16a0-4025-b885-bd2567697e80","block_type":"box","text":"BlackRock Advantage","page_number":33,"box":{"x":781,"y":665,"width":128,"height":8}},{"id":"a969dc84-554a-43c5-9d8d-482d9ff94324","block_type":"box","text":"Large Cap Core Fund","page_number":33,"box":{"x":784,"y":675,"width":122,"height":8}},{"id":"62c6d29b-26e8-4a94-b37d-82ee553d2e6b","block_type":"box","text":"Investor A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":33,"box":{"x":70,"y":692,"width":521,"height":9}},{"id":"487602a3-3ac8-49ba-9267-38a59ad68fd4","block_type":"box","text":"400,000,000 300,000,000","page_number":33,"box":{"x":645,"y":692,"width":255,"height":11}},{"id":"4e983481-9317-440d-821b-27b4d9c6a48b","block_type":"box","text":"Investor C . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":33,"box":{"x":70,"y":707,"width":521,"height":9}},{"id":"cc8a4230-8397-4976-b224-4c33feb4e5e8","block_type":"box","text":"400,000,000 400,000,000","page_number":33,"box":{"x":645,"y":707,"width":255,"height":11}},{"id":"2d66ad5e-5de9-44e1-806e-cdf721bc871d","block_type":"box","text":"Institutional . .","page_number":33,"box":{"x":70,"y":723,"width":105,"height":8}},{"id":"bda9acaa-0dd5-456f-af26-e6274928804e","block_type":"box","text":"...................................................","page_number":33,"box":{"x":181,"y":730,"width":410,"height":1}},{"id":"9dadbefe-6468-4009-a424-2680888919f7","block_type":"box","text":"400,000,000 400,000,000","page_number":33,"box":{"x":645,"y":723,"width":255,"height":10}},{"id":"94b48e67-3cda-440e-88d4-7bed335d9acd","block_type":"box","text":"Class R . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .","page_number":33,"box":{"x":69,"y":738,"width":522,"height":9}},{"id":"762cb63f-2970-42a4-9877-9ee79a9a8fbb","block_type":"box","text":"200,000,000 200,000,000","page_number":33,"box":{"x":646,"y":738,"width":254,"height":10}},{"id":"80daf2ee-5371-4462-aedd-38c72a493d0b","block_type":"box","text":"Class K . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,","page_number":33,"box":{"x":69,"y":753,"width":574,"height":10}},{"id":"0006456f-6a48-4f4d-bd1a-bc2c773f0b69","block_type":"box","text":"000,000,000 2,000,000,000","page_number":33,"box":{"x":645,"y":753,"width":255,"height":10}},{"id":"088f26bf-2551-4f93-b377-2a51b863f405","block_type":"box","text":"Common Stock","page_number":33,"box":{"x":166,"y":792,"width":89,"height":7}},{"id":"89d90170-b88e-4b5f-bdb5-47d3b17432f8","block_type":"box","text":"BlackRock Event","page_number":33,"box":{"x":706,"y":782,"width":99,"height":7}},{"id":"94e25709-9c19-4a11-ab60-4098a914b4d2","block_type":"box","text":"Driven Equity Fund","page_number":33,"box":{"x":702,"y":792,"width":107,"height":9}},{"id":"84480209-1e76-42d3-86b6-56c42fbc66b4","block_type":"box","text":"Investor A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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Financial Statements","page_number":35,"box":{"x":69,"y":45,"width":179,"height":9}},{"id":"84046699-7759-49c1-829f-6a9273f8e7ff","block_type":"box","text":"The audited financial statements, financial highlights and notes thereto in the Fund’s Annual Financial","page_number":35,"box":{"x":101,"y":67,"width":726,"height":12}},{"id":"5f3895f3-2688-4ddb-8daf-31f8c0bce49d","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":35,"box":{"x":69,"y":82,"width":829,"height":12}},{"id":"f3592849-edfe-46ed-b0e9-8587bac62438","block_type":"box","text":"(the “2026 Annual Financial Statements”), are incorporated in this SAI by reference. No other par ts of the 2026","page_number":35,"box":{"x":69,"y":98,"width":800,"height":11}},{"id":"e81ea179-eedb-4ea5-992a-d92767e4e6ab","block_type":"box","text":"Annual Financial Statements are incorporated by reference herein. The 2026 Annual Financial Statements have been","page_number":35,"box":{"x":68,"y":113,"width":833,"height":11}},{"id":"8d8ebaa4-fe18-4b05-abd6-1409e47b0ac4","block_type":"box","text":"audited by Deloitte & Touche LLP. The repor t of Deloitte & Touche LLP is incorporated herein by reference. Such 2026","page_number":35,"box":{"x":69,"y":128,"width":839,"height":11}},{"id":"e08f5bf2-9ccb-48fa-9680-bcb06cd1f52b","block_type":"box","text":"Annual Financial Statements have been incorporated herein in reliance upon the repor t of such firm given their","page_number":35,"box":{"x":68,"y":143,"width":790,"height":11}},{"id":"a4e2664d-78bc-48ba-aaac-7162adede9f8","block_type":"box","text":"authority as exper ts in accounting and auditing. Additional copies of the Fund’s annual and semi-annual repor ts to","page_number":35,"box":{"x":69,"y":158,"width":815,"height":11}},{"id":"ba5c21e7-3532-4272-99c1-8fadeb5de7d6","block_type":"box","text":"shareholders and the Fund’s Annual and Semi-Annual Financial Statements and Additional Information may be","page_number":35,"box":{"x":69,"y":173,"width":785,"height":11}},{"id":"f734da05-7897-4b9c-9790-b91ffa3b41cf","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":35,"box":{"x":69,"y":188,"width":836,"height":12}},{"id":"d9ca08ce-1ccf-40b0-8ba6-8b4d976ff22a","block_type":"box","text":"I-26","page_number":35,"box":{"x":476,"y":943,"width":27,"height":9}},{"id":"85ba7e3c-2106-42cc-9489-1978da84269f","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":35,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"abdc8167-433f-4cea-90da-9025421a89f4","block_type":"box","text":"PART II","page_number":36,"box":{"x":463,"y":45,"width":52,"height":9}},{"id":"70ac818c-64da-4174-b1ab-eb2ce69235cf","block_type":"box","text":"Throughout this Statement of Additional Information (“SAI”), each BlackRock-advised fund may be referred to as","page_number":36,"box":{"x":101,"y":67,"width":799,"height":12}},{"id":"d9bf914e-46f6-40f7-b716-6e0175d17f2d","block_type":"box","text":"a “Fund” or collectively with others as the “Funds.” Cer tain Funds may also be referred to as “Municipal Funds” if","page_number":36,"box":{"x":69,"y":82,"width":813,"height":12}},{"id":"96c18f88-2045-462f-ad91-ee274e89f622","block_type":"box","text":"they invest cer tain of their assets in municipal investments described below.","page_number":36,"box":{"x":68,"y":98,"width":546,"height":11}},{"id":"63815973-77c4-47a0-9e2a-aea7502578d3","block_type":"box","text":"Each Fund is organized either as a Maryland corporation, a Massachusetts business trust or a Delaware","page_number":36,"box":{"x":102,"y":120,"width":745,"height":12}},{"id":"8f359442-dfeb-4d5a-8a93-c8b1467b407f","block_type":"box","text":"statutory trust. In each jurisdiction, nomenclature varies. For ease and clarity of presentation, shares of common","page_number":36,"box":{"x":69,"y":135,"width":805,"height":11}},{"id":"84d40197-6f3b-4830-9e1a-79b04ac63b98","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":36,"box":{"x":69,"y":150,"width":824,"height":11}},{"id":"053ac088-160b-4c37-8aa1-bd2934107b1a","block_type":"box","text":"Common Stock are referred to as “shareholders,” the trustees or directors of each Fund are referred to as","page_number":36,"box":{"x":69,"y":166,"width":761,"height":10}},{"id":"41a1654d-c23f-49df-932d-7d66a6b46de8","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":36,"box":{"x":70,"y":181,"width":835,"height":11}},{"id":"4a3223de-2bc5-4ed9-8b8c-9f15aea11b57","block_type":"box","text":"BlackRock Advisors, LLC, BlackRock Fund Advisors or their respective affiliates is the investment adviser or manager","page_number":36,"box":{"x":70,"y":196,"width":832,"height":11}},{"id":"dd9bd4f9-eb24-4d62-b7c1-e2316adb6d7a","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":36,"box":{"x":69,"y":211,"width":826,"height":11}},{"id":"12e64379-7a28-4156-abe3-179c790afa33","block_type":"box","text":"management agreement applicable to each Fund is referred to as the “Management Agreement.” Each Fund’s","page_number":36,"box":{"x":69,"y":226,"width":786,"height":11}},{"id":"7396c06c-3294-4231-a8f8-3016fcc6d051","block_type":"box","text":"Ar ticles of Incorporation or Declaration of Trust, together with all amendments thereto, is referred to as its “char ter.”","page_number":36,"box":{"x":68,"y":241,"width":834,"height":11}},{"id":"5266e7e3-658c-41cc-80c1-94b7e4091230","block_type":"box","text":"The Investment Company Act of 1940, as amended, is referred to herein as the “Investment Company Act.” The","page_number":36,"box":{"x":68,"y":256,"width":801,"height":11}},{"id":"15e28f06-b35b-4829-b982-f4eff959bcdd","block_type":"box","text":"Securities Act of 1933, as amended, is referred to herein as the “Securities Act.” The Securities and Exchange","page_number":36,"box":{"x":69,"y":271,"width":793,"height":12}},{"id":"97e7ad81-cbe0-4e19-b9e8-feffe74b8a4b","block_type":"box","text":"Commission is referred to herein as the “Commission” or the “SEC.”","page_number":36,"box":{"x":69,"y":286,"width":492,"height":10}},{"id":"bc2ad241-e1da-44f7-ab94-d41c784da682","block_type":"box","text":"Cer tain Funds are “feeder” funds (each, a “Feeder Fund”) that invest all or a por tion of their assets in a","page_number":36,"box":{"x":102,"y":309,"width":741,"height":11}},{"id":"776ada0c-3a76-49aa-8253-6dfa488f8db3","block_type":"box","text":"corresponding “master” por tfolio (each, a “Master Por tfolio”) of a master limited liability company (each, a “Master","page_number":36,"box":{"x":69,"y":324,"width":824,"height":12}},{"id":"0576023b-bbc0-469b-a420-941b8d755e48","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":36,"box":{"x":70,"y":339,"width":814,"height":12}},{"id":"0b6ccac6-50f6-4b95-8281-479daaa2fa4a","block_type":"box","text":"made at the level of the Master Por tfolio. This structure is sometimes called a “master/feeder” structure. A Feeder","page_number":36,"box":{"x":69,"y":355,"width":825,"height":11}},{"id":"ea8e0c83-591a-4fff-a6fc-12d24e221674","block_type":"box","text":"Fund’s investment results will correspond directly to the investment results of the underlying Master Por tfolio in","page_number":36,"box":{"x":70,"y":370,"width":795,"height":11}},{"id":"fd7694ef-762a-448f-a695-b3464054e742","block_type":"box","text":"which it invests. For simplicity, this SAI uses the term “Fund” to include both a Feeder Fund and its Master Por tfolio.","page_number":36,"box":{"x":68,"y":385,"width":830,"height":11}},{"id":"cc6f7495-3108-4673-b2aa-03096308f4b1","block_type":"box","text":"In addition to containing information about the Funds, Par t II of this SAI contains general information about all","page_number":36,"box":{"x":102,"y":407,"width":783,"height":12}},{"id":"0d226243-66e8-45ba-872d-7871f5bfaa63","block_type":"box","text":"funds in the BlackRock-advised fund complex. Cer tain information contained herein may not be relevant to a","page_number":36,"box":{"x":68,"y":423,"width":772,"height":11}},{"id":"a11f2981-efc1-4e0c-86bc-b710fb0a14a5","block_type":"box","text":"par ticular Fund.","page_number":36,"box":{"x":70,"y":438,"width":109,"height":11}},{"id":"44bed522-0ddf-4696-92f9-4cc55b36630f","block_type":"box","text":"INVESTMENT RISKS AND CONSIDERATIONS","page_number":36,"box":{"x":314,"y":467,"width":351,"height":10}},{"id":"926add36-cb2d-4b03-a39a-61a0f22f1f13","block_type":"box","text":"Set for th below are descriptions of some of the types of investments and investment strategies that one or more","page_number":36,"box":{"x":102,"y":490,"width":805,"height":11}},{"id":"205c71b9-f6b1-4091-875e-08fc74ecaecd","block_type":"box","text":"of the Funds may use, and the risks and considerations associated with those investments and investment","page_number":36,"box":{"x":69,"y":505,"width":765,"height":11}},{"id":"ce568117-ce08-478f-b85c-6137a8d1c5a6","block_type":"box","text":"strategies. Please see each Fund’s prospectuses (the “Prospectus”) and the “Investment Objective and Policies,”","page_number":36,"box":{"x":69,"y":520,"width":811,"height":12}},{"id":"07c21465-74d6-4479-8eb5-1ba418bdca19","block_type":"box","text":"“Investment Objectives and Policies” or “Investment Strategies and Risks of the Fund” section, as applicable, of Par t","page_number":36,"box":{"x":70,"y":535,"width":837,"height":12}},{"id":"fddc5cc6-617b-4ec9-81a6-9ba09c921ef9","block_type":"box","text":"I of this SAI for fur ther information on each Fund’s investment policies and risks. Information contained in this","page_number":36,"box":{"x":70,"y":550,"width":785,"height":11}},{"id":"2fba712e-e59f-44eb-bab0-d1a5529e409b","block_type":"box","text":"section about the risks and considerations associated with a Fund’s investments and/or investment strategies","page_number":36,"box":{"x":69,"y":566,"width":791,"height":11}},{"id":"57e55c15-c754-43b7-a6ec-7ca12ea5e369","block_type":"box","text":"applies only to those Funds specifically identified in Par t I of this SAI as making each type of investment or using","page_number":36,"box":{"x":69,"y":581,"width":805,"height":11}},{"id":"3ff8c1de-c807-47a2-8d09-d52d84b489d6","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":36,"box":{"x":69,"y":596,"width":835,"height":11}},{"id":"ffc769b0-fc9c-45dc-9c3b-96c9a75753cc","block_type":"box","text":"a par t of that Covered Fund’s SAI and should not be relied on by investors in that Covered Fund. Only information that","page_number":36,"box":{"x":69,"y":611,"width":840,"height":11}},{"id":"73430c7b-718d-4e13-a5eb-d2566de2ff4c","block_type":"box","text":"is clearly identified as applicable to a Covered Fund is considered to form a par t of that Covered Fund’s SAI.","page_number":36,"box":{"x":70,"y":626,"width":770,"height":11}},{"id":"77f4c7c4-4f29-4b4d-b415-0adf63ded919","block_type":"box","text":"Asset-Backed Securities.","page_number":36,"box":{"x":101,"y":649,"width":183,"height":9}},{"id":"380b20f0-da8c-4be1-9259-0f79563773bc","block_type":"box","text":"Asset-backed securities are securities backed by home equity loans, installment sale","page_number":36,"box":{"x":290,"y":649,"width":607,"height":11}},{"id":"0098c95f-def4-4883-9c0b-e369180e03df","block_type":"box","text":"contracts, credit card receivables or other assets. Asset-backed securities are “pass-through” securities, meaning","page_number":36,"box":{"x":69,"y":664,"width":814,"height":11}},{"id":"59494f7f-12f9-437d-be80-77b7e66afa2a","block_type":"box","text":"that principal and interest payments — net of expenses — made by the borrower on the underlying assets (such as","page_number":36,"box":{"x":68,"y":679,"width":825,"height":11}},{"id":"7e97ea08-13ed-4bcb-96c8-253fd7aecd12","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":36,"box":{"x":69,"y":694,"width":813,"height":11}},{"id":"ff8cb3db-582c-4dad-bc02-58b3ed5be51f","block_type":"box","text":"fixed-income securities, typically increases when interest rates fall and decreases when interest rates rise. However,","page_number":36,"box":{"x":68,"y":709,"width":830,"height":11}},{"id":"e282ca52-1812-4684-a0b8-8296761df690","block_type":"box","text":"asset-backed securities differ from traditional fixed-income securities because of their potential for prepayment. The","page_number":36,"box":{"x":69,"y":724,"width":827,"height":11}},{"id":"77e8500a-a950-4101-9f2d-3b011619c0e7","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":36,"box":{"x":70,"y":739,"width":813,"height":12}},{"id":"d3202d39-674f-40e4-88a5-3397bc7fd7ef","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":36,"box":{"x":68,"y":755,"width":818,"height":11}},{"id":"0b0e6acf-4294-4889-a386-d9457cb303cb","block_type":"box","text":"the underlying assets. In a period of declining interest rates, borrowers may prepay the underlying assets more","page_number":36,"box":{"x":68,"y":770,"width":792,"height":11}},{"id":"a7438f83-3bae-4029-abca-b4f60068daac","block_type":"box","text":"quickly than anticipated, thereby reducing the yield to maturity and the average life of the asset-backed securities.","page_number":36,"box":{"x":69,"y":785,"width":811,"height":11}},{"id":"c14dedea-e992-4230-9d41-e1791d700040","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":36,"box":{"x":70,"y":800,"width":832,"height":11}},{"id":"7b944f4b-9884-4466-be07-5f3bbcebd359","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":36,"box":{"x":70,"y":815,"width":792,"height":11}},{"id":"d38fe128-677f-40d4-9471-5d002f320722","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":36,"box":{"x":69,"y":830,"width":825,"height":11}},{"id":"a3048dca-a00b-4697-b991-3e3a7bf8cfe8","block_type":"box","text":"such securities at a discount, both scheduled payments and unscheduled prepayments will increase current and total","page_number":36,"box":{"x":69,"y":846,"width":838,"height":10}},{"id":"d6e6f15b-5b82-438d-ad13-7f3778c4bb4a","block_type":"box","text":"returns and unscheduled prepayments will also accelerate the recognition of income which, when distributed to","page_number":36,"box":{"x":69,"y":860,"width":793,"height":12}},{"id":"d2db76b0-27ae-4ee6-9a44-8dd262becb9d","block_type":"box","text":"shareholders, will be taxable as ordinary income. In a period of rising interest rates, prepayments of the underlying","page_number":36,"box":{"x":69,"y":875,"width":819,"height":12}},{"id":"bc982843-07fb-4619-85d8-bd7508e1bb2c","block_type":"box","text":"assets may occur at a slower than expected rate, creating maturity extension risk. This par ticular risk may effectively","page_number":36,"box":{"x":69,"y":891,"width":834,"height":11}},{"id":"6dc159b9-2a53-4984-93c7-1ee912cfa46f","block_type":"box","text":"change a security that was considered shor t- or intermediate-term at the time of purchase into a longer term security.","page_number":36,"box":{"x":69,"y":906,"width":837,"height":11}},{"id":"30c037e8-998e-439e-be4f-2026657999cb","block_type":"box","text":"II-1","page_number":36,"box":{"x":478,"y":943,"width":23,"height":9}},{"id":"a8112be9-cc88-410c-ad5b-385e779c3b5b","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":36,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8c5023c3-e080-4690-a137-4862699ddbc3","block_type":"box","text":"Since the value of longer-term securities generally fluctuates more widely in response to changes in interest rates","page_number":37,"box":{"x":69,"y":45,"width":810,"height":11}},{"id":"f1bf282a-c1df-478c-ad88-99788a9cc0a6","block_type":"box","text":"than does the value of shor ter-term securities, maturity extension risk could increase the volatility of the Fund. When","page_number":37,"box":{"x":68,"y":60,"width":833,"height":11}},{"id":"4a964aac-67f2-4986-ad04-15f0d08c128a","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":37,"box":{"x":70,"y":75,"width":827,"height":11}},{"id":"4f66f823-22d9-4d59-a60c-a4c9212f1faa","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":37,"box":{"x":68,"y":90,"width":805,"height":11}},{"id":"a5fe92ec-259c-4cb8-9017-92c3b2acedb5","block_type":"box","text":"retard prepayments and thus affect maturities.","page_number":37,"box":{"x":69,"y":105,"width":333,"height":11}},{"id":"27bc80d0-2a88-49e6-bdf0-10fa1c7dbea6","block_type":"box","text":"Asset-Based Securities.","page_number":37,"box":{"x":101,"y":128,"width":173,"height":9}},{"id":"9dcd437a-88d3-44fa-a810-a52421bf6bc9","block_type":"box","text":"Cer tain Funds may invest in debt, preferred or conver tible securities, the principal","page_number":37,"box":{"x":281,"y":128,"width":582,"height":11}},{"id":"b4690108-8a8e-47a8-90f4-bc97a4ec18d5","block_type":"box","text":"amount, redemption terms or conversion terms of which are related to the market price of some natural resource","page_number":37,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"e08d96aa-402c-484b-8b7a-94c1d4b7eeeb","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":37,"box":{"x":69,"y":158,"width":815,"height":11}},{"id":"259a1292-3a56-4204-a6a4-bf83bb343d8d","block_type":"box","text":"asset-based securities that are rated, or are issued by issuers that have outstanding debt obligations rated,","page_number":37,"box":{"x":69,"y":173,"width":769,"height":11}},{"id":"b9b35cbc-ffdc-444e-88ea-46f5d5dc49fe","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":37,"box":{"x":70,"y":188,"width":833,"height":12}},{"id":"088b5d89-873b-4f46-9b48-1374e99182fa","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":37,"box":{"x":70,"y":203,"width":795,"height":12}},{"id":"c3f13853-d6a6-4a55-9ee0-21a95347e356","block_type":"box","text":"issuers that the Manager has determined to be of similar creditwor thiness. Obligations ranked in the four th highest","page_number":37,"box":{"x":70,"y":218,"width":824,"height":12}},{"id":"4a6a9cb2-9ea1-4d3a-b041-caeb058419a7","block_type":"box","text":"rating category, while considered “investment grade,” may have cer tain speculative characteristics and may be more","page_number":37,"box":{"x":69,"y":234,"width":832,"height":11}},{"id":"ff40d955-4d95-4817-ada1-8421d8354605","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":37,"box":{"x":70,"y":249,"width":797,"height":11}},{"id":"6dc2049e-f262-41be-8966-f12c2bf1ce3b","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":37,"box":{"x":69,"y":264,"width":768,"height":11}},{"id":"ec5d98fa-246d-4bcb-97f8-6a9448b12d08","block_type":"box","text":"determining the creditwor thiness of the issuer. While the market prices for an asset-based security and the related","page_number":37,"box":{"x":69,"y":279,"width":819,"height":11}},{"id":"c714462a-884f-42d1-b6c9-39f3961f0b7d","block_type":"box","text":"natural resource asset generally are expected to move in the same direction, there may not be per fect correlation in","page_number":37,"box":{"x":69,"y":294,"width":829,"height":11}},{"id":"142ad57f-c8a7-47e5-a0c1-2d4a300fa599","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":37,"box":{"x":68,"y":309,"width":780,"height":11}},{"id":"e2c5c673-3e67-4d01-9e1a-759892c1f5cc","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":37,"box":{"x":69,"y":325,"width":815,"height":11}},{"id":"1ffbdba4-2f53-4802-8508-05b45749b36c","block_type":"box","text":"preferred dividends at below market (or even relatively nominal) rates. Cer tain asset-based securities may be payable","page_number":37,"box":{"x":70,"y":339,"width":837,"height":12}},{"id":"ea710a32-218b-454b-888d-8c8375d3b6db","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":37,"box":{"x":69,"y":355,"width":812,"height":11}},{"id":"bc2acd9b-2bd3-4c2f-a265-03b0a8f2318f","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":37,"box":{"x":69,"y":370,"width":836,"height":11}},{"id":"bca23ebb-0cf2-4798-8e45-a21c26890d82","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":37,"box":{"x":69,"y":385,"width":778,"height":11}},{"id":"966fcede-ee35-4975-88ff-c69f53b28c4a","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":37,"box":{"x":69,"y":400,"width":819,"height":11}},{"id":"c412b06f-9ed3-4fec-9a7e-cfe57dcc0399","block_type":"box","text":"appreciation in the underlying asset.","page_number":37,"box":{"x":69,"y":415,"width":258,"height":11}},{"id":"01ef95e1-f0ae-4fd3-bcae-7a05d87cb2ec","block_type":"box","text":"Precious Metal-Related Securities.","page_number":37,"box":{"x":102,"y":438,"width":243,"height":9}},{"id":"49a573e1-5eaa-441f-8418-e4e4d56198c9","block_type":"box","text":"A Fund may invest in the equity and other securities of companies that","page_number":37,"box":{"x":351,"y":438,"width":503,"height":11}},{"id":"34a80b6a-bf10-4fd2-93f1-c0e6d31aef77","block_type":"box","text":"explore for, extract, process or deal in precious metals (","page_number":37,"box":{"x":69,"y":453,"width":398,"height":11}},{"id":"603fa598-a663-43f3-bc67-0c60ef710ed3","block_type":"box","text":"e.g.","page_number":37,"box":{"x":469,"y":454,"width":25,"height":10}},{"id":"d19eb8b7-15ee-4d4b-8119-508bf7ba4e0b","block_type":"box","text":", gold, silver and platinum), and in asset-based securities","page_number":37,"box":{"x":497,"y":453,"width":407,"height":11}},{"id":"15662b30-8834-48b0-9f1e-ca6c174b7ee4","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":37,"box":{"x":70,"y":468,"width":801,"height":11}},{"id":"b9e61023-1ee5-4aa6-ac1e-7678f4967146","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":37,"box":{"x":70,"y":483,"width":815,"height":11}},{"id":"81e805a2-69b2-4e09-bf64-91a4e8245480","block_type":"box","text":"are expected to benefit from inflationary pressure or other economic, political or financial uncer tainty or instability.","page_number":37,"box":{"x":69,"y":498,"width":815,"height":11}},{"id":"fd6caa3a-0b2e-49da-9f99-40cab152a8b0","block_type":"box","text":"Based on historical experience, during periods of economic or financial instability the securities of companies","page_number":37,"box":{"x":70,"y":513,"width":779,"height":12}},{"id":"0c6bfd7a-a1ff-4d81-893e-a9758202b218","block_type":"box","text":"involved in precious metals may be subject to extreme price fluctuations, reflecting the high volatility of precious","page_number":37,"box":{"x":70,"y":528,"width":799,"height":12}},{"id":"7de2ba60-dfdb-4383-8119-266cd2cdf53c","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":37,"box":{"x":69,"y":543,"width":838,"height":12}},{"id":"89d678c1-63b9-4662-aa8a-fe2c187b1139","block_type":"box","text":"precious metal-related companies, which may, in turn, adversely affect the financial condition of such companies. The","page_number":37,"box":{"x":70,"y":559,"width":838,"height":11}},{"id":"62f98528-6de2-43e0-8aaf-f163afcbf2a9","block_type":"box","text":"major producers of gold include the Republic of South Africa, Russia, Canada, the United States, Brazil and Australia.","page_number":37,"box":{"x":69,"y":574,"width":835,"height":11}},{"id":"9c9461bf-b7e6-4422-8f93-975c2f043890","block_type":"box","text":"Sales of gold by Russia are largely unpredictable and often relate to political and economic considerations rather","page_number":37,"box":{"x":69,"y":589,"width":806,"height":11}},{"id":"7c2b9f22-8c88-4b29-a691-adff926bdc30","block_type":"box","text":"than to market forces. Economic, financial, social and political factors within South Africa may significantly affect","page_number":37,"box":{"x":68,"y":604,"width":805,"height":11}},{"id":"45d8d0fc-9355-4e79-a21f-35b8f7c369c9","block_type":"box","text":"South African gold production.","page_number":37,"box":{"x":69,"y":619,"width":213,"height":11}},{"id":"c0f73f3c-3ced-4a44-a8a6-dffa7983730c","block_type":"box","text":"Borrowing and Leverage.","page_number":37,"box":{"x":102,"y":642,"width":179,"height":11}},{"id":"44dfbfa7-9d9c-4c8f-b7ea-68d1c7dc368b","block_type":"box","text":"Each Fund may borrow as a temporary measure for extraordinary or emergency","page_number":37,"box":{"x":288,"y":642,"width":563,"height":11}},{"id":"603ede78-d90f-40e8-abc7-56495dd95e6e","block_type":"box","text":"purposes, including to meet redemptions or to settle securities transactions. Cer tain Funds will not purchase","page_number":37,"box":{"x":70,"y":657,"width":777,"height":11}},{"id":"bc69f618-3fa2-4750-a366-ef6e646ef84d","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":37,"box":{"x":69,"y":672,"width":806,"height":11}},{"id":"ca99bd91-bd70-4144-b98d-5fda98a123e5","block_type":"box","text":"(b) to exercise subscription rights when outstanding borrowings have been obtained exclusively for settlements of","page_number":37,"box":{"x":69,"y":687,"width":810,"height":11}},{"id":"4a9964a2-71ff-4469-b801-e0bccda6e92f","block_type":"box","text":"other securities transactions.","page_number":37,"box":{"x":69,"y":703,"width":207,"height":8}},{"id":"d30865e3-902a-4a94-9027-b0a84d956a2b","block_type":"box","text":"Cer tain Funds may also borrow in order to make investments, to the extent disclosed in such Fund’s Prospectus.","page_number":37,"box":{"x":102,"y":725,"width":806,"height":11}},{"id":"2360057d-5f9b-4d57-b376-aa5b25e8da3c","block_type":"box","text":"The purchase of securities while borrowings are outstanding will have the effect of leveraging the Fund. Such","page_number":37,"box":{"x":68,"y":740,"width":776,"height":11}},{"id":"1fb6db81-e460-42f9-8513-49473b5cfb41","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":37,"box":{"x":70,"y":755,"width":813,"height":11}},{"id":"07f9eb46-81ea-4fb4-89fa-da3faba6caef","block_type":"box","text":"reduce net income. The use of leverage by a Fund creates an oppor tunity for greater total return, but, at the same","page_number":37,"box":{"x":69,"y":770,"width":813,"height":12}},{"id":"9c35bb60-6d01-4e12-9b69-5cec27bcd680","block_type":"box","text":"time, creates special risks. For example, leveraging may exaggerate changes in the net asset value (“NAV”) of Fund","page_number":37,"box":{"x":68,"y":785,"width":823,"height":12}},{"id":"4588a1a5-fb0e-495e-b825-b63b9ab5046f","block_type":"box","text":"shares and in the yield on the Fund’s por tfolio. Although the principal of such borrowings will be fixed, the Fund’s","page_number":37,"box":{"x":69,"y":801,"width":806,"height":11}},{"id":"ab2314f6-8854-440d-a9ad-4e53fa5d5cf5","block_type":"box","text":"assets may change in value during the time the borrowings are outstanding. Borrowings will create interest expenses","page_number":37,"box":{"x":69,"y":816,"width":835,"height":11}},{"id":"7ce93d1b-a191-414e-832e-26bf68e71052","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":37,"box":{"x":68,"y":831,"width":835,"height":11}},{"id":"8281959b-f826-428d-bca3-5f5d2711d3d0","block_type":"box","text":"capital appreciation derived from securities purchased with borrowed funds exceeds the interest the Fund will have to","page_number":37,"box":{"x":69,"y":846,"width":838,"height":11}},{"id":"87ce8ddb-a95d-43aa-bf8f-4b93490dbbed","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":37,"box":{"x":70,"y":861,"width":835,"height":11}},{"id":"491de0af-7c53-42b2-83e9-1297f678d6a7","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":37,"box":{"x":69,"y":876,"width":825,"height":11}},{"id":"c0f4c9cc-0472-4a40-9a68-cef08e30c025","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":37,"box":{"x":69,"y":891,"width":837,"height":12}},{"id":"6ec6cdcf-35e7-46c1-844d-12a93bf8bc60","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":37,"box":{"x":68,"y":906,"width":805,"height":12}},{"id":"5e8cefd2-cb87-4adc-b92a-bd727e9c734c","block_type":"box","text":"II-2","page_number":37,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"94e7f4f6-833c-407b-823f-b9837dce3fcd","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":37,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d39d8de5-4081-44ca-a752-8f4d6b3a5cac","block_type":"box","text":"never theless may determine to maintain the Fund’s leveraged position if it expects that the benefits to the Fund’s","page_number":38,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"31a35abe-45a6-4011-b33e-01b7d720bac4","block_type":"box","text":"shareholders of maintaining the leveraged position will outweigh the current reduced return.","page_number":38,"box":{"x":69,"y":60,"width":653,"height":11}},{"id":"09fba494-a45f-4c84-86fe-bf0c92431ea6","block_type":"box","text":"Cer tain types of borrowings by a Fund may result in the Fund being subject to covenants in credit agreements","page_number":38,"box":{"x":102,"y":82,"width":780,"height":12}},{"id":"9216c519-5f64-4695-8107-940bc4366484","block_type":"box","text":"relating to asset coverage, por tfolio composition requirements and other matters. It is not anticipated that","page_number":38,"box":{"x":69,"y":98,"width":759,"height":11}},{"id":"c4e695b2-8609-48e7-aaad-eb135758ac0d","block_type":"box","text":"observance of such covenants would impede the Manager from managing a Fund’s por tfolio in accordance with the","page_number":38,"box":{"x":69,"y":113,"width":822,"height":11}},{"id":"f046cafc-5f31-4fd3-b555-0d629d444735","block_type":"box","text":"Fund’s investment objectives and policies. However, a breach of any such covenants not cured within the specified","page_number":38,"box":{"x":70,"y":128,"width":816,"height":11}},{"id":"c1808284-6601-48c5-96cf-e0c65830dea4","block_type":"box","text":"cure period may result in acceleration of outstanding indebtedness and require the Fund to dispose of por tfolio","page_number":38,"box":{"x":69,"y":143,"width":792,"height":11}},{"id":"65ed64ef-c4a6-4dfb-a0ba-edb5e34e3b50","block_type":"box","text":"investments at a time when it may be disadvantageous to do so.","page_number":38,"box":{"x":70,"y":158,"width":459,"height":11}},{"id":"cacc5c28-1fb5-4fd7-a304-2ac1757948c6","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":38,"box":{"x":102,"y":181,"width":786,"height":11}},{"id":"24c6d689-6cd7-4d54-a524-b1148cb23d29","block_type":"box","text":"no less favorable than those available from comparable sources of funds in the marketplace.","page_number":38,"box":{"x":69,"y":196,"width":663,"height":11}},{"id":"1eef2de6-dfba-4c16-a63d-e27e86318c02","block_type":"box","text":"Cash Management.","page_number":38,"box":{"x":102,"y":219,"width":140,"height":11}},{"id":"d994d83e-e0ca-4c84-aa25-a0bbf7a8bf12","block_type":"box","text":"Generally, the Manager will employ futures and options on futures to provide liquidity","page_number":38,"box":{"x":249,"y":218,"width":603,"height":12}},{"id":"047431fd-fd94-4427-ad47-b39d3ec3dd95","block_type":"box","text":"necessary to meet anticipated redemptions or for day-to-day operating purposes. However, if considered appropriate","page_number":38,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"1fd65212-2061-4c76-ac90-e9da530dfa59","block_type":"box","text":"in the opinion of the Manager, a por tion of a Fund’s assets may be invested in cer tain types of instruments with","page_number":38,"box":{"x":70,"y":249,"width":799,"height":11}},{"id":"540c7018-8bfe-4817-8d88-6b7a1227df46","block_type":"box","text":"remaining maturities of 397 days or less for liquidity purposes. Such instruments would consist of: (i) obligations of","page_number":38,"box":{"x":69,"y":264,"width":826,"height":11}},{"id":"b37dd957-7c67-4e02-baaf-4760f8d230b6","block_type":"box","text":"the U.S. Government, its agencies, instrumentalities, authorities or political subdivisions (“U.S. Government","page_number":38,"box":{"x":68,"y":279,"width":772,"height":11}},{"id":"93683acd-aab6-4ade-96ac-d82e32804ea5","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":38,"box":{"x":69,"y":294,"width":823,"height":11}},{"id":"fff34ec0-9c7a-485e-b445-63eb1621c699","block_type":"box","text":"comparable quality in the opinion of the Manager; (iii) commercial paper; (iv) bank obligations, including negotiable","page_number":38,"box":{"x":69,"y":309,"width":816,"height":11}},{"id":"4c019b27-96f6-4b3f-a942-52471b691c51","block_type":"box","text":"cer tificates of deposit, time deposits and bankers’ acceptances; and (v) repurchase agreements. At the time the","page_number":38,"box":{"x":69,"y":324,"width":804,"height":12}},{"id":"ba069083-4bc1-4771-bc6f-80bec7d63bb8","block_type":"box","text":"Fund invests in commercial paper, bank obligations or repurchase agreements, the issuer or the issuer’s parent must","page_number":38,"box":{"x":70,"y":340,"width":839,"height":11}},{"id":"3f2feb5c-37d7-4b2c-bde5-fa35a9bdfe18","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":38,"box":{"x":69,"y":355,"width":824,"height":11}},{"id":"c5f43afc-b440-48d5-858b-59304025a6c9","block_type":"box","text":"obligations or other shor t-term obligations rated Prime-1 by Moody’s or A-1 by S&P; or, if no such ratings are","page_number":38,"box":{"x":69,"y":370,"width":771,"height":11}},{"id":"31d922d5-ff1a-4137-8d7d-3db11e795f63","block_type":"box","text":"available, the instrument must be of comparable quality in the opinion of the Manager. For more information on","page_number":38,"box":{"x":69,"y":385,"width":793,"height":11}},{"id":"e1f6db96-673e-49e5-87fc-0411c030ca93","block_type":"box","text":"money market instruments, see “Money Market Securities” below.","page_number":38,"box":{"x":69,"y":400,"width":472,"height":11}},{"id":"b68417ee-2089-452e-9cbf-bdcdb43c0db1","block_type":"box","text":"Collateralized Debt Obligations.","page_number":38,"box":{"x":102,"y":423,"width":229,"height":11}},{"id":"79e01bda-7fce-444c-a109-aa7f1d817740","block_type":"box","text":"Cer tain Funds may invest in collateralized debt obligations (“CDOs”), which","page_number":38,"box":{"x":337,"y":423,"width":534,"height":11}},{"id":"5756cfd0-6967-4750-b0d0-8b5e3c37cb87","block_type":"box","text":"include collateralized bond obligations (“CBOs”), collateralized loan obligations (“CLOs”) and other similarly","page_number":38,"box":{"x":70,"y":438,"width":764,"height":11}},{"id":"97b3f981-92d6-486e-9f8d-2344f6369cd1","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":38,"box":{"x":69,"y":453,"width":787,"height":11}},{"id":"362c4e62-48b8-4c32-b83e-797737b4645f","block_type":"box","text":"special purpose entity (“SPE”) and is typically backed by a diversified pool of fixed-income securities (which may","page_number":38,"box":{"x":69,"y":468,"width":797,"height":11}},{"id":"b34c56f3-db1f-4a77-9d7d-1852101c6e9b","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":38,"box":{"x":70,"y":483,"width":798,"height":11}},{"id":"b324d0da-e5be-413b-9620-ba1c629a1ff9","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":38,"box":{"x":69,"y":498,"width":827,"height":11}},{"id":"14a76797-7dca-4fad-9b3c-955a0fab6f94","block_type":"box","text":"senior secured loans, senior unsecured loans, and subordinate corporate loans, including loans that may be rated","page_number":38,"box":{"x":69,"y":514,"width":814,"height":11}},{"id":"8c57e71c-1809-465a-ae33-27f5a4b57ab0","block_type":"box","text":"below investment grade or equivalent unrated loans, held by such issuer. Investments in a CLO organized outside of","page_number":38,"box":{"x":69,"y":528,"width":828,"height":12}},{"id":"bb9c77ac-1a7e-4e57-9158-3b63fe903cff","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":38,"box":{"x":68,"y":543,"width":782,"height":12}},{"id":"a97ed356-1123-47e5-8044-3b433563d00b","block_type":"box","text":"substantial por tion of which are U.S. loans. Although cer tain CDOs may benefit from credit enhancement in the form","page_number":38,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"ba0dc7ed-6c0c-4e99-a28f-5f6775472f0e","block_type":"box","text":"of a senior-subordinate structure, over-collateralization or bond insurance, such enhancement may not always be","page_number":38,"box":{"x":69,"y":574,"width":803,"height":11}},{"id":"3350cb2d-db3d-4c80-8081-14e6b77defdb","block_type":"box","text":"present, and may fail to protect a Fund against the risk of loss on default of the collateral. Cer tain CDO issuers may","page_number":38,"box":{"x":70,"y":589,"width":827,"height":11}},{"id":"21cadfd9-c87f-4609-aea7-012e9ec0d9dd","block_type":"box","text":"use derivatives contracts to create “synthetic” exposure to assets rather than holding such assets directly, which","page_number":38,"box":{"x":69,"y":604,"width":807,"height":11}},{"id":"c318176f-0392-4c76-8a92-0eb2b30570dc","block_type":"box","text":"entails the risks of derivative instruments described elsewhere in this SAI. CDOs may charge management fees and","page_number":38,"box":{"x":69,"y":619,"width":826,"height":11}},{"id":"80bae17e-758d-4f23-8806-c43fe4ee58fe","block_type":"box","text":"administrative expenses, which are in addition to those of a Fund.","page_number":38,"box":{"x":69,"y":634,"width":469,"height":11}},{"id":"1908a299-e00b-4580-a2b6-d79c30bed87c","block_type":"box","text":"For both CBOs and CLOs, the cash flows from the SPE are split into two or more por tions, called tranches,","page_number":38,"box":{"x":102,"y":657,"width":758,"height":11}},{"id":"d2c232ce-53dc-4331-8ae5-d5128ba40de3","block_type":"box","text":"varying in risk and yield. The riskiest por tion is the “equity” tranche, which bears the first loss from defaults from the","page_number":38,"box":{"x":68,"y":672,"width":836,"height":11}},{"id":"db47d022-8294-413b-b5b0-e1c42b00ba07","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":38,"box":{"x":69,"y":687,"width":838,"height":11}},{"id":"29d9db84-3bee-4882-b184-6e212f8ae362","block_type":"box","text":"is not complete). Since it is par tially protected from defaults, a senior tranche from a CBO or CLO typically has higher","page_number":38,"box":{"x":70,"y":702,"width":835,"height":12}},{"id":"95a70f0b-0f2a-4eba-892b-b5523e2dd1b4","block_type":"box","text":"ratings and lower yields than its underlying securities, and may be rated investment grade. Despite the protection","page_number":38,"box":{"x":69,"y":718,"width":808,"height":11}},{"id":"59449335-d262-4c51-93c7-7fcfc069a844","block_type":"box","text":"from the equity tranche, CBO or CLO tranches can experience substantial losses due to actual defaults, downgrades","page_number":38,"box":{"x":68,"y":732,"width":830,"height":12}},{"id":"9feb3374-bc2d-40c5-8969-7d760226e8b7","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":38,"box":{"x":69,"y":748,"width":806,"height":11}},{"id":"3a10f0b2-a258-4ff8-b671-867388a33ad3","block_type":"box","text":"tests, increased sensitivity to defaults due to collateral default and disappearance of protecting tranches, market","page_number":38,"box":{"x":68,"y":763,"width":809,"height":11}},{"id":"eb8234e6-9af1-4fb9-bea1-31b28340f6e4","block_type":"box","text":"anticipation of defaults as well as investor aversion to CBO or CLO securities as a class. Interest on cer tain tranches","page_number":38,"box":{"x":69,"y":778,"width":835,"height":11}},{"id":"23297de7-a89c-498b-9d46-cb50b5dcd93f","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":38,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"d91caa73-11cd-405a-9f9c-4e39ab0eb03a","block_type":"box","text":"cash), which involves continued exposure to default risk with respect to such payments.","page_number":38,"box":{"x":69,"y":808,"width":625,"height":11}},{"id":"13574bb7-bf30-4c0d-b3c4-4a2cff17359a","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":38,"box":{"x":101,"y":831,"width":789,"height":11}},{"id":"47d14d1c-2e76-49ac-ab39-72787fd89ea0","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":38,"box":{"x":69,"y":846,"width":830,"height":11}},{"id":"f95ba833-de50-4144-a127-19d3eacaf0b5","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":38,"box":{"x":69,"y":861,"width":830,"height":11}},{"id":"786b2605-2b15-4193-8fa9-892c462e7272","block_type":"box","text":"for Rule 144A transactions. In addition to the normal risks associated with fixed-income securities and asset-backed","page_number":38,"box":{"x":68,"y":876,"width":831,"height":9}},{"id":"4f1098ba-c7e5-434f-98d9-bef7798050e4","block_type":"box","text":"securities generally discussed elsewhere in this SAI, CDOs carry additional risks including, but not limited to: (i) the","page_number":38,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"34353538-f717-4794-a9c6-3e51429ae130","block_type":"box","text":"possibility that distributions from collateral securities will not be adequate to make interest or other payments; (ii) the","page_number":38,"box":{"x":70,"y":906,"width":838,"height":12}},{"id":"376a93a5-fe08-4737-a37d-d49af40b40af","block_type":"box","text":"II-3","page_number":38,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"680dd39b-60a4-4a86-9060-41c58d0d0fdd","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":38,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0a23bc24-6ba5-4cac-8029-362cb8bbc0aa","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":39,"box":{"x":69,"y":45,"width":832,"height":11}},{"id":"f5bebce0-db9d-446a-850e-e0a267fd6d64","block_type":"box","text":"rating organization (“NRSRO”); (iii) a Fund may invest in tranches of CDOs that are subordinate to other tranches;","page_number":39,"box":{"x":69,"y":60,"width":807,"height":11}},{"id":"afaece7d-16ce-499d-be75-fe061328809f","block_type":"box","text":"(iv) the structure and complexity of the transaction and the legal documents could lead to disputes among investors","page_number":39,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"1d956685-7daa-4768-b45d-10d3323b1b21","block_type":"box","text":"regarding the characterization of proceeds; (v) the investment return achieved by the Fund could be significantly","page_number":39,"box":{"x":69,"y":90,"width":795,"height":11}},{"id":"c75ceb79-5d36-49f6-8be8-bf882bec2c5a","block_type":"box","text":"different than those predicted by financial models; (vi) the lack of a readily available secondary market for CDOs;","page_number":39,"box":{"x":69,"y":105,"width":804,"height":11}},{"id":"19475487-a493-4c8e-9abc-c17957204570","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":39,"box":{"x":69,"y":120,"width":805,"height":12}},{"id":"68397b95-7105-4e6c-8414-0bc8a80ac6dc","block_type":"box","text":"CDO’s manager may per form poorly.","page_number":39,"box":{"x":69,"y":135,"width":257,"height":12}},{"id":"5219a2ac-35c4-4707-b8a6-45c611ba103e","block_type":"box","text":"Commercial Paper.","page_number":39,"box":{"x":102,"y":158,"width":136,"height":11}},{"id":"6be9c0ee-5f1e-45f5-9e03-afe8a3af188d","block_type":"box","text":"Cer tain Funds may purchase commercial paper. Commercial paper purchasable by each","page_number":39,"box":{"x":244,"y":158,"width":626,"height":11}},{"id":"3552fdad-b4bf-48fd-9f1f-aeda78942990","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":39,"box":{"x":70,"y":173,"width":781,"height":11}},{"id":"734c6dae-a19d-4497-9654-70ce8ce7616d","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":39,"box":{"x":70,"y":188,"width":806,"height":12}},{"id":"7ed24b16-53bb-4e26-bc5e-4cfec029b418","block_type":"box","text":"restricted as to disposition under the Federal securities laws, and is frequently sold (and resold) to institutional","page_number":39,"box":{"x":69,"y":203,"width":792,"height":12}},{"id":"201b338f-5f7e-4eb5-bac6-cd21c5ca9be1","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":39,"box":{"x":70,"y":218,"width":820,"height":12}},{"id":"0ff7307f-4378-40ed-a335-56c9252dd255","block_type":"box","text":"4(a)(2) paper, thereby providing liquidity. Cer tain transactions in Section 4(a)(2) paper may qualify for the registration","page_number":39,"box":{"x":69,"y":234,"width":831,"height":11}},{"id":"1c2e282b-9a06-4986-91c6-17fa16989fbc","block_type":"box","text":"exemption provided in Rule 144A under the Securities Act. Most Funds can purchase commercial paper rated (at the","page_number":39,"box":{"x":69,"y":249,"width":831,"height":11}},{"id":"b4ee76e7-2aaa-4f3e-a4d0-8ef61a224edf","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":39,"box":{"x":68,"y":264,"width":805,"height":11}},{"id":"9d5c19ec-16e3-4e28-a0ae-f3b764496694","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":39,"box":{"x":69,"y":279,"width":707,"height":11}},{"id":"e7345cf7-ccc5-437f-b8a1-10984ae6fb21","block_type":"box","text":"Commercial paper is generally considered to be shor t-term unsecured debt of corporations. Like all fixed income","page_number":39,"box":{"x":102,"y":302,"width":801,"height":11}},{"id":"f1ec03e3-1891-42ac-abcd-87880f6731e1","block_type":"box","text":"securities, commercial paper prices are susceptible to fluctuations in interest rates. If interest rates rise, commercial","page_number":39,"box":{"x":69,"y":317,"width":836,"height":11}},{"id":"dd2456f5-b052-4423-9266-823a6bad1b0e","block_type":"box","text":"paper prices will decline and vice versa. However, the shor t-term nature of a commercial paper investment generally","page_number":39,"box":{"x":70,"y":332,"width":826,"height":11}},{"id":"0ccd4ba5-511e-44d2-a0ea-3b5837acfb7b","block_type":"box","text":"makes it less susceptible to volatility than many other fixed income securities because interest rate risk typically","page_number":39,"box":{"x":69,"y":347,"width":803,"height":11}},{"id":"b7bf5e3d-cda7-4ddb-a083-0852fb033a05","block_type":"box","text":"increases as maturity lengths increase. Commercial paper tends to yield smaller returns than longer-term corporate","page_number":39,"box":{"x":70,"y":362,"width":822,"height":11}},{"id":"dc47a428-025c-49ce-a0d8-4648b72b48c4","block_type":"box","text":"debt because securities with shor ter maturities typically have lower effective yields than those with longer maturities.","page_number":39,"box":{"x":69,"y":377,"width":835,"height":12}},{"id":"78e541ea-af07-485c-af7a-1e9afee7024b","block_type":"box","text":"Commodity-Linked Derivative Instruments and Hybrid Instruments.","page_number":39,"box":{"x":102,"y":400,"width":483,"height":11}},{"id":"118ada44-30eb-41d1-9947-080d6a759b05","block_type":"box","text":"Cer tain Funds seek to gain exposure to the","page_number":39,"box":{"x":591,"y":400,"width":308,"height":11}},{"id":"b51600d3-65f0-46b2-83f1-dfdcee531b3a","block_type":"box","text":"commodities markets primarily through investments in hybrid instruments. Hybrid instruments are either equity or","page_number":39,"box":{"x":69,"y":415,"width":809,"height":11}},{"id":"3e961ab1-a3f9-40da-a61e-2ce933ff98d3","block_type":"box","text":"debt derivative securities with one or more commodity-dependent components that have payment features similar to","page_number":39,"box":{"x":69,"y":430,"width":828,"height":11}},{"id":"0fb993b0-9eea-4fe6-8a5c-95e4c2bd0aca","block_type":"box","text":"a commodity futures contract, a commodity option contract, or a combination of both. Therefore, these instruments","page_number":39,"box":{"x":69,"y":445,"width":822,"height":11}},{"id":"5c4bce5f-f184-475e-ab7f-cbd0b3e58ef1","block_type":"box","text":"are “commodity-linked.” They are considered “hybrid” instruments because they have both commodity-like and","page_number":39,"box":{"x":69,"y":461,"width":787,"height":11}},{"id":"70114b0e-ed5a-4952-8ae0-1c1b006eac92","block_type":"box","text":"security-like characteristics. Hybrid instruments are derivative instruments because at least par t of their value is","page_number":39,"box":{"x":69,"y":475,"width":801,"height":12}},{"id":"3f8e7f85-0c07-42b4-80e7-64aac27851fa","block_type":"box","text":"derived from the value of an underlying commodity, futures contract, index or other readily measurable economic","page_number":39,"box":{"x":69,"y":491,"width":800,"height":11}},{"id":"d650ce5d-e2f4-4b85-990a-74d116c8ca1a","block_type":"box","text":"variable.","page_number":39,"box":{"x":68,"y":506,"width":59,"height":9}},{"id":"5cefe0d2-983a-4908-b513-3143aea060ef","block_type":"box","text":"The prices of commodity-linked derivative instruments may move in different directions than investments in","page_number":39,"box":{"x":101,"y":528,"width":763,"height":12}},{"id":"c4e996c9-763a-4085-bea3-f154e687232d","block_type":"box","text":"traditional equity and debt securities when the value of those traditional securities is declining due to adverse","page_number":39,"box":{"x":68,"y":543,"width":783,"height":12}},{"id":"37fc091d-c18d-4534-a2e2-d32439b43c98","block_type":"box","text":"economic conditions. As an example, during periods of rising inflation, debt securities have historically tended to","page_number":39,"box":{"x":69,"y":559,"width":802,"height":11}},{"id":"5d5b2b7c-0525-43a3-9d22-e9069a938e7a","block_type":"box","text":"decline in value due to the general increase in prevailing interest rates. Conversely, during those same periods of","page_number":39,"box":{"x":69,"y":574,"width":808,"height":11}},{"id":"25a97650-45b4-4366-abc4-1875fb2a894d","block_type":"box","text":"rising inflation, the prices of cer tain commodities, such as oil and metals, have historically tended to increase. Of","page_number":39,"box":{"x":69,"y":589,"width":811,"height":11}},{"id":"3ae40b31-e125-42f5-945f-30b1f2a010ec","block_type":"box","text":"course, there cannot be any guarantee that these investments will per form in that manner in the future, and at","page_number":39,"box":{"x":69,"y":604,"width":791,"height":11}},{"id":"e6d2a0e4-b832-4110-bbfd-6cd823a30453","block_type":"box","text":"cer tain times the price movements of commodity-linked instruments have been parallel to those of debt and equity","page_number":39,"box":{"x":69,"y":619,"width":819,"height":11}},{"id":"03d4340e-6048-471f-adc9-84f11d165ee0","block_type":"box","text":"securities. Commodities have historically tended to increase and decrease in value during different par ts of the","page_number":39,"box":{"x":69,"y":634,"width":795,"height":12}},{"id":"052f28f6-a098-4340-88bf-b3b5af1cbde9","block_type":"box","text":"business cycle than financial assets. Never theless, at various times, commodities prices may move in tandem with","page_number":39,"box":{"x":69,"y":649,"width":822,"height":12}},{"id":"1321b855-c36b-4332-a7cb-56788960f442","block_type":"box","text":"the prices of financial assets and thus may not provide overall por tfolio diversification benefits. Under favorable","page_number":39,"box":{"x":68,"y":664,"width":797,"height":12}},{"id":"c276f4fd-ab29-4e89-a5e8-713bb256b06e","block_type":"box","text":"economic conditions, the Fund’s investments may be expected to under-per form an investment in traditional","page_number":39,"box":{"x":69,"y":680,"width":772,"height":11}},{"id":"cac2dd0c-db38-48be-99c6-354efa8ebfe0","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":39,"box":{"x":69,"y":695,"width":773,"height":11}},{"id":"bb2098df-8c2d-4738-8e7b-a8c14828a199","block_type":"box","text":"correlation with stocks and bonds.","page_number":39,"box":{"x":69,"y":710,"width":244,"height":9}},{"id":"76a370ce-9506-4881-8f74-3f1380e65149","block_type":"box","text":"Qualifying Hybrid Instruments.","page_number":39,"box":{"x":102,"y":732,"width":212,"height":12}},{"id":"16826363-9a27-4ad7-b410-a1620bed0018","block_type":"box","text":"Cer tain Funds may invest in hybrid instruments that qualify for exclusion from","page_number":39,"box":{"x":320,"y":732,"width":552,"height":12}},{"id":"d74989aa-983a-4c06-aefe-5ccc13cf7b6a","block_type":"box","text":"regulation under the Commodity Exchange Act and the regulations adopted thereunder. A hybrid instrument that","page_number":39,"box":{"x":69,"y":748,"width":795,"height":11}},{"id":"3ea40982-3b31-4371-a913-e81bf5734b3c","block_type":"box","text":"qualifies for this exclusion from regulation must be “predominantly a security.” A hybrid instrument is considered to","page_number":39,"box":{"x":69,"y":763,"width":822,"height":11}},{"id":"ac61e82c-24c1-4d5e-834b-fef44fc32f21","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":39,"box":{"x":69,"y":778,"width":834,"height":11}},{"id":"fd7d5856-f5d9-4016-84ab-57d338fa06f5","block_type":"box","text":"the hybrid instrument, substantially contemporaneously with delivery of the hybrid instrument; (b) the purchaser or","page_number":39,"box":{"x":68,"y":793,"width":816,"height":11}},{"id":"bded7178-3c3d-4a38-a691-4e9c0e63d57b","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":39,"box":{"x":69,"y":808,"width":817,"height":11}},{"id":"74c3cd7f-8ad6-4653-bce1-ae0366949e62","block_type":"box","text":"paid under subparagraph (a), whether as margin, settlement payment, or otherwise, during the life of the hybrid","page_number":39,"box":{"x":70,"y":823,"width":793,"height":12}},{"id":"0d4164d8-90e1-4ad3-b9a4-aea03516ef60","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":39,"box":{"x":70,"y":838,"width":798,"height":11}},{"id":"48487e04-d9b1-4a9c-8307-345686c1fc6c","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":39,"box":{"x":69,"y":853,"width":797,"height":12}},{"id":"33892a61-e484-47fc-866e-579266fd9085","block_type":"box","text":"commodity for future delivery (or option on such a contract) subject to applicable provisions of the Commodity","page_number":39,"box":{"x":69,"y":869,"width":783,"height":11}},{"id":"c7431376-3b64-4604-83bb-50ef5285fc24","block_type":"box","text":"Exchange Act. Hybrid instruments may be principal protected, par tially protected, or offer no principal protection. A","page_number":39,"box":{"x":70,"y":884,"width":816,"height":11}},{"id":"9a39358b-a656-4fd9-be22-65ec628560e4","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":39,"box":{"x":70,"y":899,"width":791,"height":11}},{"id":"950b86cd-e5f3-4d14-ae94-8fd67b14eb02","block_type":"box","text":"II-4","page_number":39,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"499a39f1-d03f-49a7-a5eb-19da2772bd73","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":39,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a2400cad-3494-4b1d-a190-ab8dbfe105d7","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":40,"box":{"x":69,"y":45,"width":829,"height":11}},{"id":"80877f71-4247-4b35-b468-f4ffa3f80620","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":40,"box":{"x":68,"y":60,"width":837,"height":11}},{"id":"56fff8b2-99db-4d43-948c-285eea548125","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":40,"box":{"x":70,"y":75,"width":772,"height":11}},{"id":"3fa2a5bc-5e1f-411f-9c12-902fa8434c1d","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":40,"box":{"x":69,"y":90,"width":839,"height":11}},{"id":"f5d49906-b0ca-4cd6-a550-cb54fe4d6818","block_type":"box","text":"level of the underlying commodity. The Manager’s decision whether to use principal protection depends in par t on the","page_number":40,"box":{"x":70,"y":105,"width":835,"height":11}},{"id":"8f06f40c-4849-4945-aff3-ea8980092a00","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":40,"box":{"x":69,"y":120,"width":833,"height":12}},{"id":"0e6c4521-90b4-41d2-baa3-420f1590c5ba","block_type":"box","text":"to buy back the security, and, therefore, depends on the creditwor thiness of the issuer. With full principal protection,","page_number":40,"box":{"x":68,"y":135,"width":831,"height":11}},{"id":"0f5a79a6-0f37-4971-9f89-b5adbcbba904","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":40,"box":{"x":68,"y":150,"width":795,"height":12}},{"id":"cefcc620-2ed1-4d7b-9784-7fcddf105fd5","block_type":"box","text":"potentially, an amount greater than the stated par value if the underlying commodity, index, futures contract or","page_number":40,"box":{"x":70,"y":166,"width":784,"height":11}},{"id":"4ed1b3c0-7035-4d80-8126-2d82808b0350","block_type":"box","text":"economic variable to which the hybrid instrument is linked has increased in value. Par tially protected hybrid","page_number":40,"box":{"x":69,"y":181,"width":765,"height":11}},{"id":"f28cc708-cc5b-4e2f-9d1a-ac545676c7fa","block_type":"box","text":"instruments may suffer some loss of principal if the underlying commodity, index, futures contract or economic","page_number":40,"box":{"x":70,"y":196,"width":788,"height":11}},{"id":"98c63d09-d2be-42d4-a0c2-fdfa283bbeca","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":40,"box":{"x":68,"y":211,"width":828,"height":11}},{"id":"10a5b460-db61-4a50-9068-282476dd1a3e","block_type":"box","text":"par tially protected hybrid instruments have a specified limit as to the amount of principal that they may lose.","page_number":40,"box":{"x":70,"y":226,"width":773,"height":11}},{"id":"6e9fa5f2-1b12-4b91-a256-0c94e2725ecd","block_type":"box","text":"Hybrid Instruments Without Principal Protection.","page_number":40,"box":{"x":102,"y":249,"width":339,"height":11}},{"id":"66b2df4d-09aa-4f60-bfb6-1190d02204cc","block_type":"box","text":"Cer tain Funds may invest in hybrid instruments that offer no","page_number":40,"box":{"x":448,"y":249,"width":429,"height":11}},{"id":"09eb1e2b-369e-4d04-a0da-3f1632bd04d3","block_type":"box","text":"principal protection. At maturity, there is a risk that the underlying commodity price, futures contract, index or other","page_number":40,"box":{"x":70,"y":264,"width":818,"height":11}},{"id":"8ef6d059-a44c-47ac-95c6-5f8311334526","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":40,"box":{"x":69,"y":279,"width":780,"height":11}},{"id":"56d09195-8fa3-43bd-960f-44da79b74b68","block_type":"box","text":"instrument might not be returned. The Manager, at its discretion, may invest in a par tially protected principal","page_number":40,"box":{"x":70,"y":294,"width":773,"height":11}},{"id":"744b31a5-5cee-44b6-9fb4-5120b87d7b5a","block_type":"box","text":"structured note or a note without principal protection. In deciding to purchase a note without principal protection, the","page_number":40,"box":{"x":69,"y":309,"width":832,"height":11}},{"id":"0a117b99-f4f4-43c1-abc9-d6943fb8d4d7","block_type":"box","text":"Manager may consider, among other things, the expected per formance of the underlying commodity futures contract,","page_number":40,"box":{"x":70,"y":324,"width":831,"height":12}},{"id":"9f5aa113-0100-4a46-a839-b44fd7913519","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":40,"box":{"x":70,"y":339,"width":831,"height":12}},{"id":"5352a80e-4ad8-4c52-9967-519892db550e","block_type":"box","text":"the Manager believes are relevant.","page_number":40,"box":{"x":68,"y":355,"width":247,"height":11}},{"id":"3aee73be-58ab-4034-acb8-d7d3c94d0895","block_type":"box","text":"Limitations on Leverage.","page_number":40,"box":{"x":102,"y":377,"width":173,"height":12}},{"id":"734e0b26-ce90-41f4-ba22-2ea872ee9d0f","block_type":"box","text":"Some of the hybrid instruments in which a Fund may invest may involve leverage. To","page_number":40,"box":{"x":281,"y":377,"width":598,"height":12}},{"id":"8079efed-ba84-4f28-bcc6-98151703605d","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":40,"box":{"x":69,"y":392,"width":840,"height":12}},{"id":"51789bb4-da24-4a92-8a54-29f2d639b0b6","block_type":"box","text":"one hybrid instrument that it buys and the leverage of the Fund’s overall por tfolio. A Fund will not invest in a hybrid","page_number":40,"box":{"x":69,"y":407,"width":816,"height":12}},{"id":"2885741d-889b-47b9-857f-8d0ddf4ab5f4","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":40,"box":{"x":70,"y":423,"width":812,"height":11}},{"id":"12922a84-554b-4def-975c-738dcf7a0e07","block_type":"box","text":"the underlying commodity, futures contract, index or other economic variable or (ii) the Fund’s “por tfolio leverage","page_number":40,"box":{"x":68,"y":438,"width":803,"height":11}},{"id":"6d6eb51e-387d-4acd-b792-1a5dbd9fa88a","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":40,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"0a04226e-e901-4d91-8cdc-e8397b4efe50","block_type":"box","text":"hybrid instrument, assuming a one percent price increase in the underlying commodity, futures contract, index or","page_number":40,"box":{"x":69,"y":468,"width":803,"height":11}},{"id":"c6a07720-a5f1-4780-bae4-b6d7e0b23477","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":40,"box":{"x":69,"y":483,"width":783,"height":11}},{"id":"dfb5bd7e-e37e-4e8f-a804-c51b9daeb714","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":40,"box":{"x":69,"y":498,"width":758,"height":11}},{"id":"e85acc71-62ad-4901-8946-139499835233","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":40,"box":{"x":69,"y":513,"width":818,"height":12}},{"id":"a4285c83-fcee-40bc-9c9e-36333fa87a6f","block_type":"box","text":"variable lost 1% of its value. “Por tfolio leverage ratio” is defined as the average (mean) leverage ratio of all","page_number":40,"box":{"x":68,"y":528,"width":763,"height":12}},{"id":"2e6f2928-415d-4921-a94b-71dcb903dc8e","block_type":"box","text":"instruments in a Fund’s por tfolio, weighted by the market values of such instruments or, in the case of futures","page_number":40,"box":{"x":70,"y":543,"width":787,"height":12}},{"id":"ba72f11f-65c6-4cf4-8b2e-1f1e667212cf","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":40,"box":{"x":69,"y":559,"width":757,"height":11}},{"id":"437aaadf-14db-44f7-9a60-baf45a4beb66","block_type":"box","text":"investments or use less leverage than may otherwise be allowable.","page_number":40,"box":{"x":70,"y":574,"width":477,"height":11}},{"id":"254a5677-346a-4e84-b79e-998acf29d4ac","block_type":"box","text":"Counterpar ty Risk.","page_number":40,"box":{"x":102,"y":597,"width":130,"height":11}},{"id":"9423bc2a-cb77-4d86-b73f-bf28bd5a46dc","block_type":"box","text":"A significant risk of hybrid instruments is counterpar ty risk. Unlike exchange-traded futures","page_number":40,"box":{"x":238,"y":596,"width":646,"height":12}},{"id":"7f6f8482-b0cb-4dc1-908f-fa5562ff87d6","block_type":"box","text":"and options, which are standard contracts, hybrid instruments are customized securities, tailor-made by a specific","page_number":40,"box":{"x":69,"y":612,"width":813,"height":11}},{"id":"87bccc09-4295-4f3b-84d7-2498f321be77","block_type":"box","text":"issuer. With a listed futures or options contract, an investor’s counterpar ty is the exchange clearinghouse. Exchange","page_number":40,"box":{"x":70,"y":627,"width":829,"height":11}},{"id":"251a2b99-3c67-4e09-9c45-624f000be0ba","block_type":"box","text":"clearinghouses are capitalized by the exchange members and typically have high investment grade ratings (","page_number":40,"box":{"x":69,"y":642,"width":763,"height":11}},{"id":"16edad45-253a-4d1d-b602-6f0660cd0f66","block_type":"box","text":"e.g.","page_number":40,"box":{"x":834,"y":643,"width":25,"height":10}},{"id":"9a87d7e0-8c68-45a4-9ffe-3c957c2f1464","block_type":"box","text":",","page_number":40,"box":{"x":861,"y":649,"width":2,"height":3}},{"id":"66ddfd64-062e-4ea4-9d4c-84a9c3644b97","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":40,"box":{"x":69,"y":657,"width":836,"height":11}},{"id":"1da94a45-6fed-465a-8403-584d39bb8b15","block_type":"box","text":"obligations at maturity. However, with a hybrid instrument, a Fund will take on the counterpar ty credit risk of the","page_number":40,"box":{"x":69,"y":672,"width":795,"height":11}},{"id":"802af64d-eeb5-4038-ab66-c97a82694e30","block_type":"box","text":"issuer. That is, at maturity of the hybrid instrument, there is a risk that the issuer may be unable to per form its","page_number":40,"box":{"x":70,"y":687,"width":791,"height":11}},{"id":"f6f48d29-59bf-4626-b651-6b6fc16f4268","block_type":"box","text":"obligations under the structured note.","page_number":40,"box":{"x":69,"y":703,"width":268,"height":11}},{"id":"cc3ca26e-aba7-414f-834a-9eb40261e0c7","block_type":"box","text":"Convertible Securities.","page_number":40,"box":{"x":102,"y":725,"width":165,"height":9}},{"id":"b5846ee9-0b6e-406b-b062-ba71cd29339e","block_type":"box","text":"A conver tible security is a bond, debenture, note, preferred stock or other security that","page_number":40,"box":{"x":273,"y":725,"width":619,"height":11}},{"id":"21df619b-dbd7-4109-9750-c44bdaeb5640","block_type":"box","text":"may be conver ted into or exchanged for a prescribed amount of common stock or other equity security of the same or","page_number":40,"box":{"x":69,"y":740,"width":839,"height":11}},{"id":"df3ee8d7-2016-413b-bf58-84a2a0f14433","block_type":"box","text":"a different issuer within a par ticular period of time at a specified price or formula. A conver tible security entitles the","page_number":40,"box":{"x":69,"y":755,"width":826,"height":11}},{"id":"4b3ffa00-a4b3-41fd-8c45-d132ade67653","block_type":"box","text":"holder to receive interest paid or accrued on debt or the dividend paid on preferred stock until the conver tible","page_number":40,"box":{"x":69,"y":770,"width":781,"height":11}},{"id":"79df69e7-a2cd-48ff-bd60-823a6c6e7bf8","block_type":"box","text":"security matures or is redeemed, conver ted or exchanged. Before conversion, conver tible securities have","page_number":40,"box":{"x":69,"y":785,"width":750,"height":12}},{"id":"4c7cc12f-a02c-4e4f-ae55-b4c0c3c9e243","block_type":"box","text":"characteristics similar to nonconver tible income securities in that they ordinarily provide a stable stream of income","page_number":40,"box":{"x":69,"y":801,"width":819,"height":11}},{"id":"776b96a0-3125-4f55-9e91-49b9a2d620d2","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":40,"box":{"x":68,"y":816,"width":784,"height":11}},{"id":"d575832f-4d88-4ef8-a635-ed56b8f58ced","block_type":"box","text":"comparable nonconver tible securities. The value of a conver tible security is influenced by changes in interest rates,","page_number":40,"box":{"x":69,"y":831,"width":823,"height":11}},{"id":"45add12a-336f-41a2-b861-0e2bb2070b3a","block_type":"box","text":"with investment value declining as interest rates increase and increasing as interest rates decline. The credit","page_number":40,"box":{"x":68,"y":846,"width":780,"height":11}},{"id":"cdb62e22-21eb-4028-8bb3-28b89083f4fd","block_type":"box","text":"standing of the issuer and other factors also may have an effect on the conver tible security’s investment value.","page_number":40,"box":{"x":69,"y":861,"width":795,"height":11}},{"id":"c865a01c-2f2b-431b-a8b9-39403cc1fca1","block_type":"box","text":"Conver tible securities rank senior to common stock in a corporation’s capital structure but are usually subordinated","page_number":40,"box":{"x":69,"y":876,"width":826,"height":11}},{"id":"98b69ef4-4338-483c-9890-ae17442480d5","block_type":"box","text":"to comparable nonconver tible securities. Conver tible securities may be subject to redemption at the option of the","page_number":40,"box":{"x":68,"y":891,"width":811,"height":11}},{"id":"eb67b2d8-1f5d-4aec-b6bb-075a177f9bcd","block_type":"box","text":"issuer at a price established in the conver tible security’s governing instrument.","page_number":40,"box":{"x":70,"y":907,"width":563,"height":11}},{"id":"8bd8bbc3-bce6-4294-899b-50701eb40c71","block_type":"box","text":"II-5","page_number":40,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"2b310240-e223-4903-aef3-2700cd542659","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":40,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"784e10a9-636b-49be-babc-e2fea69e1413","block_type":"box","text":"The characteristics of conver tible securities make them potentially attractive investments for an investment","page_number":41,"box":{"x":101,"y":45,"width":767,"height":11}},{"id":"a683d15b-1da0-4a93-bf39-2093cbfd2d4d","block_type":"box","text":"company seeking a high total return from capital appreciation and investment income. These characteristics include","page_number":41,"box":{"x":69,"y":60,"width":826,"height":11}},{"id":"52ee0439-61fc-476e-bbbc-0ea6931155ca","block_type":"box","text":"the potential for capital appreciation as the value of the underlying common stock increases, the relatively high yield","page_number":41,"box":{"x":68,"y":75,"width":829,"height":11}},{"id":"475679e7-f170-4f50-adbf-ecc12b80791c","block_type":"box","text":"received from dividend or interest payments as compared to common stock dividends and decreased risks of decline","page_number":41,"box":{"x":69,"y":90,"width":834,"height":11}},{"id":"8ffcd745-2a81-4a5a-8fc1-183c7d89d6a4","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":41,"box":{"x":70,"y":105,"width":788,"height":11}},{"id":"53299dc7-91ea-4b5a-b8bc-2ffadebb4f4e","block_type":"box","text":"feature, however, the interest rate or dividend preference on a conver tible security is generally less than would be the","page_number":41,"box":{"x":68,"y":120,"width":839,"height":12}},{"id":"332068b2-5064-4399-913d-7e3f3ae69250","block_type":"box","text":"case if the securities were issued in nonconver tible form.","page_number":41,"box":{"x":69,"y":135,"width":409,"height":9}},{"id":"eceaaf15-63d2-455a-90d6-92d8910a2c0a","block_type":"box","text":"In analyzing conver tible securities, the Manager will consider both the yield on the conver tible security relative to","page_number":41,"box":{"x":102,"y":158,"width":802,"height":11}},{"id":"cce59fc4-a1e3-4066-b4b4-0b9b0b8b38db","block_type":"box","text":"its credit quality and the potential capital appreciation that is offered by the underlying common stock, among other","page_number":41,"box":{"x":70,"y":173,"width":824,"height":11}},{"id":"64949bbc-7288-4089-8e87-865769a634d9","block_type":"box","text":"things.","page_number":41,"box":{"x":68,"y":188,"width":47,"height":12}},{"id":"92c46154-da31-4071-8497-99aa495b52c1","block_type":"box","text":"Conver tible securities are issued and traded in a number of securities markets. Even in cases where a","page_number":41,"box":{"x":102,"y":211,"width":731,"height":9}},{"id":"baa2fd6d-63f8-4278-a44e-840355cf639d","block_type":"box","text":"substantial por tion of the conver tible securities held by a Fund are denominated in U.S. dollars, the underlying equity","page_number":41,"box":{"x":69,"y":226,"width":836,"height":11}},{"id":"dcdfd8ad-0a74-497a-8af6-14b4cb693e62","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":41,"box":{"x":69,"y":241,"width":832,"height":11}},{"id":"ace2aab7-1e2c-49b2-aedb-24535c078d6e","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":41,"box":{"x":69,"y":257,"width":818,"height":11}},{"id":"297aa23a-f62f-410a-b396-5a4596662978","block_type":"box","text":"price is quoted will affect the value of the conver tible security. With respect to conver tible securities denominated in","page_number":41,"box":{"x":70,"y":271,"width":828,"height":12}},{"id":"7472445b-0989-40cd-9f22-7399e26297ca","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":41,"box":{"x":69,"y":286,"width":786,"height":12}},{"id":"61fd5734-6742-44ae-867c-c940cfa19fe6","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":41,"box":{"x":69,"y":302,"width":800,"height":11}},{"id":"593ba49f-ed90-4452-bffd-b3e725c253e7","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":41,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"cdae812a-cab7-4816-953c-21c72c9c5bf7","block_type":"box","text":"reduce the effect of exchange rate fluctuations.","page_number":41,"box":{"x":69,"y":332,"width":337,"height":11}},{"id":"67ccebfa-ec0a-4eb8-84fc-005e014a1f95","block_type":"box","text":"Apar t from currency considerations, the value of conver tible securities is influenced by both the yield on","page_number":41,"box":{"x":101,"y":355,"width":741,"height":11}},{"id":"fa5c7c7b-7f42-43d2-9143-5c3fb322634a","block_type":"box","text":"nonconver tible securities of comparable issuers and by the value of the underlying common stock. The value of a","page_number":41,"box":{"x":69,"y":370,"width":806,"height":11}},{"id":"9de3bf22-39fd-43c7-a162-516e51094c14","block_type":"box","text":"conver tible security viewed without regard to its conversion feature (","page_number":41,"box":{"x":69,"y":385,"width":485,"height":11}},{"id":"b7657ca2-99d4-4615-b576-f9cea4d1dc91","block_type":"box","text":"i.e.","page_number":41,"box":{"x":557,"y":385,"width":20,"height":9}},{"id":"7bae301f-ebdb-4517-b31b-879a07bbdbbd","block_type":"box","text":", strictly on the basis of its yield) is","page_number":41,"box":{"x":579,"y":385,"width":248,"height":11}},{"id":"62fe6cc8-7a79-4acb-949b-b4697266db0e","block_type":"box","text":"sometimes referred to as its “investment value.” To the extent interest rates change, the investment value of the","page_number":41,"box":{"x":69,"y":400,"width":808,"height":11}},{"id":"c7f08544-db77-4f9a-a68e-1124b9f1cddf","block_type":"box","text":"conver tible security typically will fluctuate. At the same time, however, the value of the conver tible security will be","page_number":41,"box":{"x":69,"y":415,"width":807,"height":11}},{"id":"5e40240f-68b5-480e-aab9-c30bae12dbcb","block_type":"box","text":"influenced by its “conversion value,” which is the market value of the underlying common stock that would be","page_number":41,"box":{"x":70,"y":430,"width":778,"height":11}},{"id":"fe5ecdc4-7b70-4c69-93e7-2992208ae2f0","block_type":"box","text":"obtained if the conver tible security were conver ted. Conversion value fluctuates directly with the price of the","page_number":41,"box":{"x":69,"y":445,"width":769,"height":11}},{"id":"2203f952-e6bf-44da-bc36-e942cd08b56d","block_type":"box","text":"underlying common stock. If the conversion value of a conver tible security is substantially below its investment value,","page_number":41,"box":{"x":69,"y":460,"width":837,"height":12}},{"id":"88075a92-d6b7-42ee-8b56-372ca4fbeb0f","block_type":"box","text":"the price of the conver tible security is governed principally by its investment value. To the extent the conversion value","page_number":41,"box":{"x":68,"y":475,"width":837,"height":12}},{"id":"3a358f9e-3f65-42f5-9c6f-222593055d54","block_type":"box","text":"of a conver tible security increases to a point that approximates or exceeds its investment value, the price of the","page_number":41,"box":{"x":69,"y":491,"width":800,"height":11}},{"id":"8e5ec20a-8eef-4da8-a276-7d6b0da09dd0","block_type":"box","text":"conver tible security will be influenced principally by its conversion value. A conver tible security will sell at a premium","page_number":41,"box":{"x":69,"y":506,"width":828,"height":11}},{"id":"5f83c3e0-d722-4f50-964e-3c0ccd916262","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":41,"box":{"x":69,"y":521,"width":808,"height":11}},{"id":"bf6a0483-7699-4976-9fd3-7250cc72accb","block_type":"box","text":"while holding a fixed-income security. The yield and conversion premium of conver tible securities issued in Japan and","page_number":41,"box":{"x":68,"y":536,"width":835,"height":11}},{"id":"d1885355-3ed6-4770-8656-8c244e458b39","block_type":"box","text":"the Euromarket are frequently determined at levels that cause the conversion value to affect their market value more","page_number":41,"box":{"x":68,"y":551,"width":836,"height":11}},{"id":"c8fb2f12-7059-4473-bf40-7c1cacd96440","block_type":"box","text":"than the securities’ investment value.","page_number":41,"box":{"x":68,"y":566,"width":268,"height":9}},{"id":"c41dd8df-39d4-46e9-ba85-e8e23c370f12","block_type":"box","text":"Holders of conver tible securities generally have a claim on the assets of the issuer prior to the common","page_number":41,"box":{"x":102,"y":589,"width":740,"height":11}},{"id":"3bbeb9fa-a696-476c-a332-256f3035ac6c","block_type":"box","text":"stockholders but may be subordinated to other debt securities of the same issuer. A conver tible security may be","page_number":41,"box":{"x":69,"y":604,"width":801,"height":11}},{"id":"49ce140f-3005-4ad6-9556-d2f89965114f","block_type":"box","text":"subject to redemption at the option of the issuer at a price established in a char ter provision, indenture or other","page_number":41,"box":{"x":69,"y":619,"width":800,"height":11}},{"id":"34641477-3d38-42bf-9353-ee6f0d05ee19","block_type":"box","text":"governing instrument pursuant to which the conver tible security was issued. If a conver tible security held by a Fund is","page_number":41,"box":{"x":68,"y":634,"width":840,"height":12}},{"id":"35bef23c-e071-4035-b8a2-97e429d1b475","block_type":"box","text":"called for redemption, the Fund will be required to redeem the security, conver t it into the underlying common stock","page_number":41,"box":{"x":69,"y":649,"width":823,"height":12}},{"id":"ae5962ef-220e-44da-a698-f47238fcbb37","block_type":"box","text":"or sell it to a third par ty. Cer tain conver tible debt securities may provide a put option to the holder, which entitles the","page_number":41,"box":{"x":69,"y":665,"width":835,"height":11}},{"id":"2761dc80-f969-4c97-ba2a-fb3b5673163e","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":41,"box":{"x":69,"y":680,"width":832,"height":11}},{"id":"d7c78d8f-387a-45bb-834c-edbff0f1de22","block_type":"box","text":"security under cer tain circumstances.","page_number":41,"box":{"x":69,"y":695,"width":267,"height":11}},{"id":"66f50bda-bf06-45a1-b708-708a46d625a8","block_type":"box","text":"A Fund may also invest in synthetic conver tible securities. Synthetic conver tible securities may include either","page_number":41,"box":{"x":101,"y":718,"width":777,"height":11}},{"id":"e51d5826-f8c4-40a8-938b-5fb771dc5cc4","block_type":"box","text":"Cash-Settled Conver tibles or Manufactured Conver tibles. “Cash-Settled Conver tibles” are instruments that are","page_number":41,"box":{"x":69,"y":732,"width":789,"height":10}},{"id":"f90968d5-1f8f-4aeb-b818-d9926a704a09","block_type":"box","text":"created by the issuer and have the economic characteristics of traditional conver tible securities but may not actually","page_number":41,"box":{"x":69,"y":748,"width":831,"height":11}},{"id":"943fffc2-9b6b-4ac0-a127-21290789fd20","block_type":"box","text":"permit conversion into the underlying equity securities in all circumstances. As an example, a private company may","page_number":41,"box":{"x":70,"y":763,"width":819,"height":11}},{"id":"aa9ce6b4-719c-42a3-b9f3-c43c13c8bce9","block_type":"box","text":"issue a Cash-Settled Conver tible that is conver tible into common stock only if the company successfully completes a","page_number":41,"box":{"x":70,"y":778,"width":833,"height":11}},{"id":"96209612-7af3-4deb-83fc-8605860644eb","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":41,"box":{"x":70,"y":793,"width":769,"height":11}},{"id":"ad6e9c1d-2393-48ff-a0e3-cae1a7bb139a","block_type":"box","text":"appreciation. “Manufactured Conver tibles” are created by the Manager or another par ty by combining separate","page_number":41,"box":{"x":69,"y":808,"width":791,"height":11}},{"id":"a61efe6d-e59a-4074-904b-a5c43fdcdc25","block_type":"box","text":"securities that possess one of the two principal characteristics of a conver tible security,","page_number":41,"box":{"x":69,"y":823,"width":627,"height":11}},{"id":"91cf9a35-9b45-4202-878d-3f970729de21","block_type":"box","text":"i.e.","page_number":41,"box":{"x":703,"y":823,"width":20,"height":9}},{"id":"ba15e359-9824-4a9a-91b7-2c7e0d9f2edd","block_type":"box","text":", fixed-income (“fixed","page_number":41,"box":{"x":726,"y":823,"width":151,"height":11}},{"id":"81118559-170c-48e9-81f4-5c1f6a49836e","block_type":"box","text":"income component”) or a right to acquire equity securities (“conver tibility component”). The fixed-income component","page_number":41,"box":{"x":70,"y":838,"width":830,"height":12}},{"id":"2b741afa-3545-49c1-a139-f0fde3498046","block_type":"box","text":"is achieved by investing in nonconver tible fixed-income securities, such as nonconver tible bonds, preferred stocks","page_number":41,"box":{"x":70,"y":853,"width":814,"height":12}},{"id":"e9e31414-7864-4c28-9450-084467fb45e3","block_type":"box","text":"and money market instruments. The conver tibility component is achieved by investing in call options, warrants, or","page_number":41,"box":{"x":69,"y":869,"width":811,"height":11}},{"id":"d578c4d5-8514-47d9-af89-b89e3c0f1c7b","block_type":"box","text":"other securities with equity conversion features (“equity features”) granting the holder the right to purchase a","page_number":41,"box":{"x":69,"y":884,"width":779,"height":11}},{"id":"4766ae89-cd5b-4089-86e0-02a52f935de4","block_type":"box","text":"II-6","page_number":41,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"d9da3745-942d-4d00-9bf3-4e249a2ff9d7","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":41,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"92fe2b21-d877-4a22-a944-f362440e774b","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":42,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"bc8bf60f-832c-4988-8bb1-063243fccdd4","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":42,"box":{"x":69,"y":60,"width":744,"height":11}},{"id":"261b5a05-0c12-4b55-ae59-1d9fb2c2dec6","block_type":"box","text":"A Manufactured Conver tible differs from traditional conver tible securities in several respects. Unlike a traditional","page_number":42,"box":{"x":101,"y":82,"width":804,"height":11}},{"id":"db43455a-082b-4831-b418-be682ace4f9d","block_type":"box","text":"conver tible security, which is a single security that has a unitary market value, a Manufactured Conver tible is","page_number":42,"box":{"x":69,"y":98,"width":777,"height":11}},{"id":"bfba4aa1-a6d2-4a5b-8b53-f8400e54814d","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":42,"box":{"x":69,"y":113,"width":832,"height":11}},{"id":"6e832f0a-fec7-4448-86c7-2337db4b9fe6","block_type":"box","text":"such a Manufactured Conver tible is the sum of the values of its fixed-income component and its conver tibility","page_number":42,"box":{"x":69,"y":128,"width":781,"height":11}},{"id":"7605c4ce-a9b0-4308-a5c0-21227415a0b0","block_type":"box","text":"component.","page_number":42,"box":{"x":69,"y":144,"width":82,"height":10}},{"id":"a16ddff8-bdd1-4c05-b06c-84a9eaefda55","block_type":"box","text":"More flexibility is possible in the creation of a Manufactured Conver tible than in the purchase of a traditional","page_number":42,"box":{"x":102,"y":166,"width":773,"height":11}},{"id":"fc218100-6ded-4db3-9ce3-648aadcb9091","block_type":"box","text":"conver tible security. Because many corporations have not issued conver tible securities, the Manager may combine a","page_number":42,"box":{"x":69,"y":181,"width":833,"height":11}},{"id":"d15a910c-cbb4-4bd1-ace5-68de0c2928ad","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":42,"box":{"x":68,"y":196,"width":826,"height":11}},{"id":"9d28ea05-9203-49e7-9586-3b678c582ab8","block_type":"box","text":"to create a synthetic conver tible security otherwise unavailable in the market. The Manager may also combine a","page_number":42,"box":{"x":68,"y":211,"width":800,"height":11}},{"id":"2c230386-67c9-4812-822e-c8bca8754bd9","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":42,"box":{"x":68,"y":226,"width":817,"height":11}},{"id":"b59421b6-2289-4d43-8c29-81de6fbc3098","block_type":"box","text":"Manager believes such a Manufactured Conver tible would better promote a Fund’s objective than alternative","page_number":42,"box":{"x":70,"y":241,"width":772,"height":11}},{"id":"9250189d-7aad-4ef3-bb4d-a1cf581225d2","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":42,"box":{"x":70,"y":256,"width":833,"height":12}},{"id":"8f22b884-8848-4eec-b675-6902498aa031","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":42,"box":{"x":70,"y":271,"width":790,"height":12}},{"id":"44457d1d-630e-40a5-bc49-1c7658e79853","block_type":"box","text":"Treasury instrument to create a Manufactured Conver tible with a higher credit profile than a traditional conver tible","page_number":42,"box":{"x":68,"y":286,"width":815,"height":12}},{"id":"dc358c73-cfdd-4aad-9591-08e434b809e4","block_type":"box","text":"security issued by that issuer. A Manufactured Conver tible also is a more flexible investment in that its two","page_number":42,"box":{"x":69,"y":302,"width":764,"height":11}},{"id":"11d9330b-be4a-48f8-a6a4-c313705d76c2","block_type":"box","text":"components may be purchased separately and, upon purchasing the separate securities, “combined” to create a","page_number":42,"box":{"x":69,"y":317,"width":806,"height":11}},{"id":"703886c2-42d1-4c0b-b1a0-bf76c837f75b","block_type":"box","text":"Manufactured Conver tible. For example, the Fund may purchase a warrant for eventual inclusion in a Manufactured","page_number":42,"box":{"x":70,"y":332,"width":818,"height":11}},{"id":"9642e364-3ab3-4d8c-9eaa-8183cbcaf713","block_type":"box","text":"Conver tible while postponing the purchase of a suitable bond to pair with the warrant pending development of more","page_number":42,"box":{"x":69,"y":347,"width":824,"height":11}},{"id":"47ef65af-7e5f-4298-a123-9f3dbcc2071a","block_type":"box","text":"favorable market conditions.","page_number":42,"box":{"x":68,"y":362,"width":202,"height":9}},{"id":"682cb886-a5b8-4c8b-bdd7-c44ee439d688","block_type":"box","text":"The value of a Manufactured Conver tible may respond to cer tain market fluctuations differently from a traditional","page_number":42,"box":{"x":101,"y":385,"width":805,"height":11}},{"id":"60f29065-abd4-4c7d-8abd-086bd254a5a8","block_type":"box","text":"conver tible security with similar characteristics. For example, in the event a Fund created a Manufactured Conver tible","page_number":42,"box":{"x":69,"y":400,"width":837,"height":11}},{"id":"15770ab5-72db-475f-8b02-3b9de51e7fb6","block_type":"box","text":"by combining a shor t-term U.S. Treasury instrument and a call option on a stock, the Manufactured Conver tible would","page_number":42,"box":{"x":69,"y":415,"width":839,"height":11}},{"id":"058a9621-fd26-478c-b22b-13978d782501","block_type":"box","text":"be expected to outper form a traditional conver tible of similar maturity that is conver tible into that stock during","page_number":42,"box":{"x":69,"y":430,"width":787,"height":11}},{"id":"3e28c03b-0640-42b0-9271-000642486184","block_type":"box","text":"periods when Treasury instruments outper form corporate fixed-income securities and underper form during periods","page_number":42,"box":{"x":70,"y":445,"width":815,"height":12}},{"id":"d5fe6605-f5bf-40e5-8d4b-7c5a647b026c","block_type":"box","text":"when corporate fixed-income securities outper form Treasury instruments.","page_number":42,"box":{"x":68,"y":460,"width":523,"height":12}},{"id":"a799aa24-1d52-4c01-80f9-216773cf5b79","block_type":"box","text":"Corporate Loans.","page_number":42,"box":{"x":102,"y":483,"width":123,"height":11}},{"id":"8741bf53-280e-40b6-98a9-80304a55f1a7","block_type":"box","text":"Cer tain Funds may invest in corporate loans. Corporate loans are generally non-investment","page_number":42,"box":{"x":231,"y":483,"width":647,"height":11}},{"id":"004172fd-2c3b-4947-855f-9452431a2aef","block_type":"box","text":"grade floating rate instruments. Usually, they are freely callable at the issuer’s option. Cer tain Funds may invest in","page_number":42,"box":{"x":68,"y":498,"width":817,"height":11}},{"id":"432e1522-16dd-44e1-8c04-648ac7503e19","block_type":"box","text":"fixed and floating rate loans (“Loans”) arranged through private negotiations between a corporate borrower or a","page_number":42,"box":{"x":68,"y":513,"width":794,"height":12}},{"id":"d9f314c7-2072-4ce3-b47f-5b68af86e949","block_type":"box","text":"foreign sovereign entity and one or more financial institutions or institutional investors (“Lenders”). A Fund may invest","page_number":42,"box":{"x":68,"y":528,"width":841,"height":12}},{"id":"9c17c9ac-971a-4070-897d-db615d00ab3f","block_type":"box","text":"in such Loans in the form of par ticipations in Loans (“Par ticipations”) and assignments of all or a por tion of Loans","page_number":42,"box":{"x":70,"y":543,"width":818,"height":12}},{"id":"42dd7fe0-b0ca-499c-83c2-3efd663588a6","block_type":"box","text":"from third par ties (“Assignments”). A Fund considers these investments to be investments in debt securities for","page_number":42,"box":{"x":68,"y":559,"width":801,"height":11}},{"id":"9a67dfeb-9079-448e-9c51-852f3830425d","block_type":"box","text":"purposes of its investment policies. Par ticipations typically will result in the Fund having a contractual relationship","page_number":42,"box":{"x":70,"y":574,"width":811,"height":11}},{"id":"757f5121-c53c-4804-bcdb-22a7c003837b","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":42,"box":{"x":69,"y":589,"width":833,"height":11}},{"id":"9a681f1b-ff9d-4c3c-8464-8769a7670dd3","block_type":"box","text":"any fees to which it is entitled only from the Lender selling the Par ticipation and only upon receipt by the Lender of","page_number":42,"box":{"x":69,"y":604,"width":817,"height":11}},{"id":"f5090c03-f1d0-44c0-a5b0-5b2fc96685e2","block_type":"box","text":"the payments from the borrower. In connection with purchasing Par ticipations, the Fund generally will have no right to","page_number":42,"box":{"x":68,"y":619,"width":836,"height":11}},{"id":"76b3c00c-d932-41f0-adb4-bd2a54f68826","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":42,"box":{"x":69,"y":634,"width":833,"height":12}},{"id":"f24684ec-b1b6-45e9-9626-c4995755b21b","block_type":"box","text":"off against the borrower, and the Fund may not benefit directly from any collateral suppor ting the Loan in which it has","page_number":42,"box":{"x":69,"y":649,"width":837,"height":12}},{"id":"74999cc2-c714-408f-a6b4-f45574e5d9c7","block_type":"box","text":"purchased the Par ticipation. As a result, the Fund will assume the credit risk of both the borrower and the Lender","page_number":42,"box":{"x":70,"y":664,"width":809,"height":11}},{"id":"d95e05aa-2c81-44ff-9c9c-90f55b4758f8","block_type":"box","text":"that is selling the Par ticipation. In the event of the insolvency of the Lender selling the Par ticipation, the Fund may be","page_number":42,"box":{"x":68,"y":680,"width":838,"height":11}},{"id":"fdbf5dec-d129-4404-8fa6-748efb0cce1d","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":42,"box":{"x":68,"y":695,"width":772,"height":11}},{"id":"fbf958c3-1162-4b6a-8bd5-085ced057713","block_type":"box","text":"borrower. The Fund will acquire Par ticipations only if the Lender interpositioned between the Fund and the borrower is","page_number":42,"box":{"x":69,"y":710,"width":837,"height":11}},{"id":"d4dac884-876c-4e21-8536-fce92b73d34e","block_type":"box","text":"determined by the Fund’s manager to be creditwor thy. When the Fund purchases Assignments from Lenders, the","page_number":42,"box":{"x":69,"y":725,"width":804,"height":11}},{"id":"9ea5c872-d7ae-4d2b-b8f2-fd2ec41b1d7c","block_type":"box","text":"Fund will acquire direct rights against the borrower on the Loan, and will not have exposure to a counterpar ty’s credit","page_number":42,"box":{"x":70,"y":740,"width":834,"height":11}},{"id":"0970d881-7f8e-4015-9eb5-6a448a7438d8","block_type":"box","text":"risk. The Funds may enter into Par ticipations and Assignments on a forward commitment or “when-issued” basis,","page_number":42,"box":{"x":69,"y":755,"width":809,"height":11}},{"id":"43a6be45-6182-4ec5-aef3-1e6ff634fca2","block_type":"box","text":"whereby a Fund would agree to purchase a Par ticipation or Assignment at set terms in the future. For more","page_number":42,"box":{"x":68,"y":770,"width":764,"height":12}},{"id":"f6409693-1bdb-47aa-b36f-d03d52929583","block_type":"box","text":"information on forward commitments and when-issued securities, see “When-Issued Securities, Delayed Delivery","page_number":42,"box":{"x":70,"y":785,"width":805,"height":12}},{"id":"8fbc2884-b6fe-46e2-a15d-13767aa3a892","block_type":"box","text":"Securities and Forward Commitments” below.","page_number":42,"box":{"x":69,"y":801,"width":324,"height":9}},{"id":"840dc0e2-64db-452e-9c13-af30e3a1b4e8","block_type":"box","text":"A Fund may have difficulty disposing of Assignments and Par ticipations. In cer tain cases, the market for such","page_number":42,"box":{"x":101,"y":823,"width":782,"height":12}},{"id":"986235e9-8863-4562-9b63-acce447e9e72","block_type":"box","text":"instruments may lack sufficient liquidity, and therefore the Fund anticipates that in such cases such instruments","page_number":42,"box":{"x":70,"y":838,"width":803,"height":11}},{"id":"ed8a72ae-c882-4217-a31b-74a1d195d2a2","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":42,"box":{"x":69,"y":853,"width":809,"height":12}},{"id":"06f75711-277c-43f4-b6e0-c63345bc2486","block_type":"box","text":"may have an adverse impact on the value of such instruments and on the Fund’s ability to dispose of par ticular","page_number":42,"box":{"x":69,"y":869,"width":795,"height":11}},{"id":"963d2765-2b5e-4d93-a1a8-98ebfb869627","block_type":"box","text":"Assignments or Par ticipations in response to a specific economic event, such as deterioration in the creditwor thiness","page_number":42,"box":{"x":68,"y":884,"width":841,"height":11}},{"id":"14b6015e-dda5-4eb8-89df-0f05bcd41a33","block_type":"box","text":"of the borrower.","page_number":42,"box":{"x":69,"y":899,"width":111,"height":9}},{"id":"3f23ca35-0d93-49dd-b6ab-1d2a52998602","block_type":"box","text":"II-7","page_number":42,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"b61aa004-bc2f-4e84-9915-0aca2514bbf1","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":42,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c06b7d24-2edd-4f35-a2f0-bf7f3a945450","block_type":"box","text":"Leading financial institutions often act as agent for a broader group of Lenders, generally referred to as a","page_number":43,"box":{"x":102,"y":45,"width":750,"height":11}},{"id":"2ecaf1cb-cfb8-4857-a311-d7a696083949","block_type":"box","text":"syndicate. The syndicate’s agent arranges the loans, holds collateral and accepts payments of principal and interest.","page_number":43,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"334b48d9-c0bd-4ec3-9370-e57fae80c911","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":43,"box":{"x":70,"y":75,"width":816,"height":11}},{"id":"6fba6797-b61c-471e-a821-bb6fb0d3ff8b","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":43,"box":{"x":101,"y":98,"width":740,"height":11}},{"id":"0dc37a02-b297-4f2d-8aa6-35f3a2eda9a6","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":43,"box":{"x":69,"y":113,"width":827,"height":11}},{"id":"878a26cb-07e8-4d8a-959c-7fd8fc5af250","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":43,"box":{"x":70,"y":128,"width":802,"height":11}},{"id":"3f149ab4-2801-442e-98df-73cb5484387f","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":43,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"5c64c793-91ff-4f64-acf3-4bca114999a4","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":43,"box":{"x":70,"y":158,"width":827,"height":11}},{"id":"253a6759-a5ae-4aec-be97-48e3ecb3081d","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":43,"box":{"x":69,"y":173,"width":777,"height":11}},{"id":"b113d5b5-3f3a-4720-acbf-a83e6adcc568","block_type":"box","text":"investment and may not receive interest during the delay.","page_number":43,"box":{"x":70,"y":188,"width":406,"height":12}},{"id":"3ecdcea0-5ab4-45a0-90a8-276126a0d8ce","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":43,"box":{"x":101,"y":211,"width":752,"height":11}},{"id":"f5be0cd3-870e-4127-956e-eebd1d7387ee","block_type":"box","text":"corporate loans may not be readily available to make additional investments or to meet a Fund’s redemption","page_number":43,"box":{"x":69,"y":226,"width":773,"height":11}},{"id":"f620630f-bfc5-4ad8-aa7f-c101d235449c","block_type":"box","text":"obligations. To the extent the extended settlement process gives rise to shor t-term liquidity needs, a Fund may hold","page_number":43,"box":{"x":69,"y":241,"width":824,"height":11}},{"id":"fa0a1ffd-69e5-4258-8b00-92266e6f40f5","block_type":"box","text":"additional cash, sell investments or temporarily borrow from banks and other lenders.","page_number":43,"box":{"x":69,"y":256,"width":610,"height":11}},{"id":"0f483888-b87b-448d-b7b9-cbbf658b6639","block_type":"box","text":"In cer tain circumstances, Loans may not be deemed to be securities under cer tain federal securities laws.","page_number":43,"box":{"x":102,"y":279,"width":759,"height":11}},{"id":"767a00c9-cc00-4d05-b71e-9e68e8efb94a","block_type":"box","text":"Therefore, in the event of fraud or misrepresentation by a borrower or an arranger, Lenders and purchasers of","page_number":43,"box":{"x":68,"y":294,"width":784,"height":11}},{"id":"78311191-a6b9-49fc-b110-e80066e7916e","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":43,"box":{"x":70,"y":309,"width":772,"height":11}},{"id":"c47fcfb2-272d-4596-af79-ca8ad9133c16","block_type":"box","text":"securities laws as would otherwise be available for bonds or stocks. Instead, in such cases, par ties generally would","page_number":43,"box":{"x":69,"y":324,"width":827,"height":12}},{"id":"24856287-4e3d-4e87-94da-681d5588682e","block_type":"box","text":"rely on the contractual provisions in the Loan agreement itself and common-law fraud protections under applicable","page_number":43,"box":{"x":69,"y":339,"width":815,"height":12}},{"id":"9e01ba9a-c782-4fd4-93b0-b0c16540047a","block_type":"box","text":"state law.","page_number":43,"box":{"x":69,"y":355,"width":67,"height":9}},{"id":"7d6e598c-bfb5-4967-91eb-2f6cfd763d17","block_type":"box","text":"Direct Lending.","page_number":43,"box":{"x":102,"y":377,"width":105,"height":12}},{"id":"a1bc19af-8f89-4cc7-ab20-1815888cf320","block_type":"box","text":"The Fund may act as the originator for direct loans and engage in direct lending. Direct loans","page_number":43,"box":{"x":213,"y":377,"width":660,"height":12}},{"id":"d8c64a59-e06c-4e1e-9d24-2f9b21f66063","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":43,"box":{"x":69,"y":393,"width":817,"height":11}},{"id":"f88253c4-c3e9-4623-b02e-c248adaf0bc9","block_type":"box","text":"financing to commercial borrowers directly or through companies acquired (or created) and owned by or otherwise","page_number":43,"box":{"x":68,"y":407,"width":811,"height":12}},{"id":"a592aabd-56ee-4fd2-96ec-b2052d3e551f","block_type":"box","text":"affiliated with the Fund. The terms of the direct loans are negotiated with borrowers in private transactions.","page_number":43,"box":{"x":69,"y":423,"width":764,"height":11}},{"id":"753e4541-4eb0-4078-a5c7-57d9011637c9","block_type":"box","text":"Fur thermore, a direct loan may be secured or unsecured.","page_number":43,"box":{"x":70,"y":438,"width":405,"height":11}},{"id":"86bb4813-5de0-48f2-bc85-424b962541a8","block_type":"box","text":"In determining whether to make a direct loan, the Fund will rely primarily upon the creditwor thiness of the","page_number":43,"box":{"x":102,"y":460,"width":750,"height":12}},{"id":"e391532a-219b-4cd1-957e-bdf622d0668d","block_type":"box","text":"borrower and/or any collateral for payment of interest and repayment of principal. The risks associated with direct","page_number":43,"box":{"x":69,"y":475,"width":813,"height":12}},{"id":"1e0fb682-40be-4a4c-b925-ab53b16c48a2","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":43,"box":{"x":70,"y":491,"width":838,"height":11}},{"id":"88b39616-8c8e-4c3a-a825-48c95e7900c3","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":43,"box":{"x":70,"y":506,"width":818,"height":11}},{"id":"5561f891-f9a3-450d-a55a-8d43d65adfcb","block_type":"box","text":"money on the loan. Fur thermore, direct loans may subject the Fund to liquidity and interest rate risk and cer tain","page_number":43,"box":{"x":69,"y":521,"width":798,"height":11}},{"id":"24fc1d3d-3e29-4710-851c-00881f52d71b","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":43,"box":{"x":69,"y":536,"width":825,"height":11}},{"id":"d2b5d034-cd4c-414c-8f14-42f7282da7e2","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":43,"box":{"x":70,"y":551,"width":807,"height":11}},{"id":"35f634b8-5a7a-4d6e-b0f2-966631aee074","block_type":"box","text":"direct loan and/or to value the direct loan.","page_number":43,"box":{"x":69,"y":566,"width":301,"height":11}},{"id":"429742e1-9de1-445e-b97e-da9eed95de75","block_type":"box","text":"When engaging in direct lending, the Fund’s per formance may depend, in par t, on the ability of the Fund to","page_number":43,"box":{"x":101,"y":589,"width":762,"height":11}},{"id":"8c704a6c-702e-4b11-b831-2538f597a64d","block_type":"box","text":"originate loans on advantageous terms. In originating loans, the Fund will compete with a broad spectrum of lenders.","page_number":43,"box":{"x":69,"y":604,"width":833,"height":11}},{"id":"1761af1a-e961-4c9b-88c2-a5ea08a98da0","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":43,"box":{"x":70,"y":619,"width":836,"height":11}},{"id":"495c11db-2339-4e60-8a55-932d89312a91","block_type":"box","text":"such loans, which could reduce Fund per formance.","page_number":43,"box":{"x":69,"y":634,"width":362,"height":11}},{"id":"ecc1fd96-8d94-4c72-8b2c-481c81d1d695","block_type":"box","text":"As par t of its lending activities, the Fund may originate loans to companies that are experiencing significant","page_number":43,"box":{"x":101,"y":657,"width":767,"height":11}},{"id":"d5545f4e-090e-47fc-ae05-92231f5d7a50","block_type":"box","text":"financial or business difficulties, including companies involved in bankruptcy or other reorganization and liquidation","page_number":43,"box":{"x":68,"y":672,"width":821,"height":11}},{"id":"5f5642e6-94db-4605-9aa9-4026900e6546","block_type":"box","text":"proceedings. Although the terms of such financing may result in significant financial returns to the Fund, they involve","page_number":43,"box":{"x":70,"y":687,"width":830,"height":11}},{"id":"5d95e7f2-4210-46b3-a283-b8d71cd86c7c","block_type":"box","text":"a substantial degree of risk. The level of analytical sophistication, both financial and legal, necessary for successful","page_number":43,"box":{"x":69,"y":702,"width":826,"height":12}},{"id":"20c3607f-67b2-4f7a-bdb6-31df18b27a4d","block_type":"box","text":"financing to companies experiencing significant business and financial difficulties is unusually high.","page_number":43,"box":{"x":68,"y":717,"width":709,"height":12}},{"id":"486e88ec-4466-4d28-8be5-828093b00697","block_type":"box","text":"Credit Linked Securities.","page_number":43,"box":{"x":102,"y":740,"width":179,"height":9}},{"id":"37e36421-a854-433f-aea8-e1e107aac033","block_type":"box","text":"Among the income producing securities in which a Fund may invest are credit linked","page_number":43,"box":{"x":287,"y":740,"width":596,"height":11}},{"id":"550168a8-5c71-43f6-a9e8-875b1f62ca96","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":43,"box":{"x":69,"y":755,"width":837,"height":11}},{"id":"cf924f52-f01d-4b8c-a85d-e88a60c71356","block_type":"box","text":"or basket of derivative instruments, such as credit default swaps, interest rate swaps and other securities, in order","page_number":43,"box":{"x":69,"y":770,"width":823,"height":11}},{"id":"098f93c3-60e7-412f-bcc3-3cfb83b0f681","block_type":"box","text":"to provide exposure to cer tain fixed-income markets. For instance, a Fund may invest in credit linked securities as a","page_number":43,"box":{"x":68,"y":785,"width":827,"height":12}},{"id":"7678947e-04a2-4009-a66e-14120fe0c80f","block_type":"box","text":"cash management tool in order to gain exposure to a cer tain market and/or to remain fully invested when more","page_number":43,"box":{"x":69,"y":801,"width":795,"height":11}},{"id":"8f71aee2-ddcc-4203-954e-61e3f56c2aa6","block_type":"box","text":"traditional income producing securities are not available.","page_number":43,"box":{"x":68,"y":816,"width":404,"height":11}},{"id":"e0618dd6-ac75-41d7-9a33-6484db6fbdea","block_type":"box","text":"Like an investment in a bond, investments in these credit linked securities represent the right to receive periodic","page_number":43,"box":{"x":102,"y":839,"width":804,"height":11}},{"id":"8e7cbb82-5f21-4721-9721-c228f6ce8b8d","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":43,"box":{"x":70,"y":853,"width":780,"height":12}},{"id":"28f5280d-4d63-4836-bb53-e6059bde0398","block_type":"box","text":"However, these payments are conditioned on the issuer’s receipt of payments from, and the issuer’s potential","page_number":43,"box":{"x":102,"y":876,"width":785,"height":11}},{"id":"481f409e-a8e6-484b-9139-34afbef0db7d","block_type":"box","text":"obligations to, the counterpar ties to the derivative instruments and other securities in which the issuer invests. For","page_number":43,"box":{"x":69,"y":891,"width":821,"height":12}},{"id":"200c84eb-7bc7-4412-ab94-f98dfe529f39","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":43,"box":{"x":70,"y":906,"width":806,"height":12}},{"id":"5a1e39d9-1194-4da3-8367-116e5b34b5b9","block_type":"box","text":"II-8","page_number":43,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"30ea4bb6-4e30-497a-9de2-5cb12afb280a","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":43,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"43880249-7903-4370-942e-ea1e950f81c8","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":44,"box":{"x":70,"y":45,"width":819,"height":11}},{"id":"566c62b7-2910-42d3-af90-4cf622efa552","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":44,"box":{"x":69,"y":60,"width":826,"height":11}},{"id":"8872684d-8830-4f17-87d7-9789d9b51899","block_type":"box","text":"the issuer would be obligated to pay the counterpar ty the par (or other agreed upon value) of the referenced debt","page_number":44,"box":{"x":68,"y":75,"width":807,"height":11}},{"id":"622d8980-7e13-4a4f-9be8-4a4f11ef625d","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":44,"box":{"x":69,"y":90,"width":783,"height":11}},{"id":"b0e912da-820b-4dd6-8c5b-bc16523386c5","block_type":"box","text":"investments in these instruments are indirectly subject to the risks associated with derivative instruments, including,","page_number":44,"box":{"x":70,"y":105,"width":833,"height":11}},{"id":"3c536b21-b70c-4c5e-b480-e699c31ceaaf","block_type":"box","text":"among others, credit risk, default or similar event risk, counterpar ty risk, interest rate risk, leverage risk and","page_number":44,"box":{"x":69,"y":120,"width":771,"height":12}},{"id":"09730395-a6b2-4ea7-86a6-daa5ad5d3212","block_type":"box","text":"management risk. It is also expected that the securities will be exempt from registration under the Securities Act.","page_number":44,"box":{"x":69,"y":135,"width":808,"height":12}},{"id":"d7cd45c3-106f-4cf7-9f0e-b5c3f440936e","block_type":"box","text":"Accordingly, there may be no established trading market for the securities and they may constitute illiquid","page_number":44,"box":{"x":68,"y":150,"width":752,"height":12}},{"id":"80ef2b73-80cf-449e-8183-b0a32ad4e36e","block_type":"box","text":"investments.","page_number":44,"box":{"x":70,"y":166,"width":89,"height":9}},{"id":"78da2939-ec80-4e90-b571-7075df218dae","block_type":"box","text":"Debt Securities.","page_number":44,"box":{"x":102,"y":188,"width":116,"height":9}},{"id":"df8715b3-f904-448f-9036-f932abdb8d34","block_type":"box","text":"Debt securities, such as bonds, involve credit risk. This is the risk that the issuer will not make","page_number":44,"box":{"x":225,"y":188,"width":677,"height":11}},{"id":"9a26289e-10f8-410a-89f7-8ab127e7173f","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":44,"box":{"x":68,"y":203,"width":839,"height":12}},{"id":"3a5b8c63-8058-4614-aa1d-e4dbf00cc0ce","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":44,"box":{"x":68,"y":218,"width":787,"height":12}},{"id":"e50062cb-28fd-4d4b-8448-9fcf9dcb837d","block_type":"box","text":"creditwor thiness may also affect the value of a Fund’s investment in that issuer. Credit risk is reduced to the extent","page_number":44,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"2392d629-7ba5-4b0c-9744-899b27544715","block_type":"box","text":"a Fund limits its debt investments to U.S. Government Securities.","page_number":44,"box":{"x":69,"y":249,"width":466,"height":9}},{"id":"44e1ce03-8305-408f-abdd-13f7d343025e","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":44,"box":{"x":101,"y":271,"width":784,"height":12}},{"id":"086d26dc-babf-4102-8cd3-424ae4d55128","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":44,"box":{"x":68,"y":286,"width":792,"height":12}},{"id":"f2db60a4-2a1e-4e99-b6b9-8bde079c8c9f","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":44,"box":{"x":70,"y":302,"width":806,"height":11}},{"id":"ce89ee89-5460-425c-82e4-3995217ce2b0","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":44,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"446f38dd-4733-4582-a2c9-6434b87ae2ae","block_type":"box","text":"rates than will the market price of shor ter-term debt securities.","page_number":44,"box":{"x":69,"y":332,"width":448,"height":11}},{"id":"210eed5f-297d-49a1-a95a-cd5405722d0f","block_type":"box","text":"During periods of rising interest rates, the average life of cer tain fixed-income securities is extended because of","page_number":44,"box":{"x":102,"y":355,"width":798,"height":11}},{"id":"3736a905-cde9-4d69-b913-69c34c4104a7","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":44,"box":{"x":69,"y":370,"width":813,"height":11}},{"id":"014a900f-f042-4033-98d6-6615aa9fe880","block_type":"box","text":"these fixed-income securities, especially mor tgage-related securities, making them more sensitive to changes in","page_number":44,"box":{"x":68,"y":385,"width":801,"height":11}},{"id":"198be89d-56f6-4deb-896b-1079795bdbd2","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":44,"box":{"x":70,"y":400,"width":806,"height":11}},{"id":"f8ff7401-5af9-4e99-af59-693a79ed0d05","block_type":"box","text":"lose value. This is known as extension risk.","page_number":44,"box":{"x":70,"y":415,"width":307,"height":9}},{"id":"5a887b37-415c-4fda-823e-240cc8a96afc","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":44,"box":{"x":101,"y":438,"width":778,"height":11}},{"id":"5336d20a-66dc-4071-a61c-5548560f18d6","block_type":"box","text":"interest rates. Fixed-income securities with longer maturities, which tend to produce higher yields, are subject to","page_number":44,"box":{"x":70,"y":453,"width":798,"height":11}},{"id":"efb56dbf-effa-4505-a64c-33270c9c2fc8","block_type":"box","text":"potentially greater capital appreciation and depreciation than securities with shor ter maturities. The Funds are not","page_number":44,"box":{"x":70,"y":468,"width":812,"height":11}},{"id":"7550c277-8a5c-4684-8858-9e3fe337cb3f","block_type":"box","text":"restricted to any maximum or minimum time to maturity in purchasing individual por tfolio securities, and the average","page_number":44,"box":{"x":69,"y":483,"width":831,"height":11}},{"id":"0f07ed22-0392-448a-95eb-689029822bbb","block_type":"box","text":"maturity of a Fund’s assets will vary.","page_number":44,"box":{"x":69,"y":498,"width":259,"height":11}},{"id":"9347eeb8-0fae-4355-b0b9-5aed8cf3985f","block_type":"box","text":"Floating and Variable Rate Securities","page_number":44,"box":{"x":102,"y":521,"width":260,"height":11}},{"id":"46e49e77-db44-4758-a00a-c626be59323b","block_type":"box","text":". Cer tain Funds may invest in debt instruments that pay a variable coupon","page_number":44,"box":{"x":364,"y":521,"width":526,"height":11}},{"id":"a6234252-332c-470c-94d7-1f125e5597eb","block_type":"box","text":"rate. Securities with floating or variable interest rates can be less sensitive to interest rate changes than securities","page_number":44,"box":{"x":69,"y":536,"width":821,"height":11}},{"id":"22f75561-0269-4614-be40-7c9615ea8e93","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":44,"box":{"x":68,"y":551,"width":834,"height":11}},{"id":"26d23ffb-cd3f-4ab1-ad64-5ae35562e8af","block_type":"box","text":"rates in general. Conversely, floating rate securities will not generally increase in value if interest rates decline. The","page_number":44,"box":{"x":69,"y":566,"width":820,"height":11}},{"id":"90516abe-0cf7-443e-8a4f-cb179553bb66","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":44,"box":{"x":70,"y":581,"width":838,"height":12}},{"id":"f8b7c0a8-7500-4ff6-bd81-ab9e6c5480d5","block_type":"box","text":"the investments. Benchmark interest rates used for floating and variable rate securities may not accurately track","page_number":44,"box":{"x":68,"y":596,"width":804,"height":12}},{"id":"7a3a6173-27d7-4488-80e4-f070e888e89d","block_type":"box","text":"market interest rates.","page_number":44,"box":{"x":69,"y":612,"width":153,"height":9}},{"id":"5b7ec187-e1c8-4adf-9d50-1b26b19f1b81","block_type":"box","text":"Inflation-Indexed Bonds.","page_number":44,"box":{"x":102,"y":634,"width":169,"height":9}},{"id":"0f5d4aa3-f797-46a6-8380-562b20b7966e","block_type":"box","text":"Cer tain Funds may invest in inflation-indexed bonds, which are fixed-income securities or","page_number":44,"box":{"x":278,"y":634,"width":632,"height":11}},{"id":"315ff010-3300-4799-a84b-285f66ed1452","block_type":"box","text":"other instruments whose principal value is periodically adjusted according to the rate of inflation. Two structures are","page_number":44,"box":{"x":69,"y":649,"width":828,"height":12}},{"id":"0ec70635-2557-47ae-87f1-da4064c29456","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":44,"box":{"x":69,"y":664,"width":827,"height":12}},{"id":"e84526b1-9843-43f7-a9fa-322598de77fc","block_type":"box","text":"the bond. Most other issuers pay out the Consumer Price Index (“CPI”) accruals as par t of a semi-annual coupon.","page_number":44,"box":{"x":68,"y":680,"width":810,"height":11}},{"id":"f362be3a-8a35-49e0-b699-e9f736fbc245","block_type":"box","text":"Inflation-indexed securities issued by the U.S. Treasury have maturities of five, ten or thir ty years, although it is","page_number":44,"box":{"x":102,"y":702,"width":792,"height":12}},{"id":"22f1ffcb-1c2b-490b-b9d8-2c74a61a91ba","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":44,"box":{"x":70,"y":717,"width":833,"height":12}},{"id":"eeebaf43-25e8-492f-92d5-512497c2f6b5","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":44,"box":{"x":69,"y":732,"width":810,"height":12}},{"id":"b0f20100-e69f-4269-82eb-476e51aacd6a","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":44,"box":{"x":70,"y":747,"width":814,"height":12}},{"id":"86d0f6e4-cc32-4e28-8904-17d218e4f8da","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":44,"box":{"x":69,"y":762,"width":816,"height":12}},{"id":"91fb2074-c1c6-4e3d-be6a-26da87fe37bb","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":44,"box":{"x":69,"y":777,"width":828,"height":12}},{"id":"6cc344b0-4fd1-489e-92df-7cec9a7d536e","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":44,"box":{"x":69,"y":792,"width":828,"height":12}},{"id":"aae57288-c486-4fa0-a191-bab6775a404e","block_type":"box","text":"and the second semi-annual interest payment would be $15.45 ($1,030 times 1.5%).","page_number":44,"box":{"x":69,"y":807,"width":610,"height":12}},{"id":"175cf81b-9d59-4306-a224-48b151c6324a","block_type":"box","text":"If the periodic adjustment rate measuring inflation falls, the principal value of inflation-indexed bonds will be","page_number":44,"box":{"x":102,"y":831,"width":767,"height":11}},{"id":"87659c3e-8183-4e78-9fcf-35f69e8e5a3a","block_type":"box","text":"adjusted downward, and, consequently, the interest payable on these securities (calculated with respect to a smaller","page_number":44,"box":{"x":69,"y":846,"width":833,"height":11}},{"id":"0654b3ec-5c9c-436e-97b5-bd8c392e3e5e","block_type":"box","text":"principal amount) will be reduced. Repayment of the original bond principal upon maturity (as adjusted for inflation) is","page_number":44,"box":{"x":70,"y":861,"width":834,"height":11}},{"id":"c004ca5b-b2e6-416e-839b-4444ab371ac3","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":44,"box":{"x":68,"y":876,"width":795,"height":11}},{"id":"721bbb10-b3ed-4e09-8ba0-10df4d989b8b","block_type":"box","text":"current market value of the bonds is not guaranteed, and will fluctuate. Cer tain Funds may also invest in other","page_number":44,"box":{"x":69,"y":891,"width":788,"height":12}},{"id":"b6d24308-c6a2-493e-81d8-b56c55cf845e","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":44,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"fb2c12a9-4eee-4c2c-aa32-54bb2b46e150","block_type":"box","text":"II-9","page_number":44,"box":{"x":478,"y":943,"width":22,"height":9}},{"id":"738f8fdf-7288-4df7-bb93-5f9748486398","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":44,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8f6eabf6-bb36-415f-bd47-be2fc068a4a3","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":45,"box":{"x":68,"y":45,"width":821,"height":11}},{"id":"7c933010-e3e7-4cb8-baa2-7c02f0787994","block_type":"box","text":"Fund purchases inflation-indexed bonds offered by foreign issuers, the rate of inflation measured by the foreign","page_number":45,"box":{"x":70,"y":60,"width":792,"height":11}},{"id":"dbd444c9-3c14-4935-948b-5a52f1903f46","block_type":"box","text":"inflation index may not be correlated to the rate of inflation in the United States.","page_number":45,"box":{"x":70,"y":75,"width":570,"height":11}},{"id":"055faa92-c056-4520-b620-3874f4cc1889","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":45,"box":{"x":101,"y":98,"width":780,"height":11}},{"id":"248ff122-42f5-4e0f-8194-65834cbec78a","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":45,"box":{"x":70,"y":113,"width":831,"height":11}},{"id":"5582249d-9249-4363-a57f-267db29763b9","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":45,"box":{"x":70,"y":128,"width":808,"height":11}},{"id":"0a77c62b-dbd4-4e13-94cc-50adaa39f859","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":45,"box":{"x":70,"y":143,"width":796,"height":10}},{"id":"d588db1e-a960-432a-b29c-477a96c27ccf","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":45,"box":{"x":70,"y":158,"width":805,"height":11}},{"id":"1be76268-a8de-46ef-bb52-bc4dab5085a7","block_type":"box","text":"assurance, however, that the value of inflation-indexed bonds will be directly correlated to changes in interest rates.","page_number":45,"box":{"x":69,"y":173,"width":824,"height":11}},{"id":"b82b5a73-0fe6-4e4d-b14c-334245f7e261","block_type":"box","text":"While these securities are expected to be protected from long-term inflationary trends, shor t-term increases in","page_number":45,"box":{"x":101,"y":196,"width":788,"height":11}},{"id":"c4a5f5fb-4504-41f1-93ca-0133df4d7982","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":45,"box":{"x":70,"y":211,"width":825,"height":11}},{"id":"ef85f8dd-01ac-4cdc-8c1a-8b5a3b0a4eb1","block_type":"box","text":"changes in currency exchange rates), investors in these securities may not be protected to the extent that the","page_number":45,"box":{"x":69,"y":226,"width":784,"height":11}},{"id":"41b7cd9e-e247-47b8-8368-f7dc0d743fdf","block_type":"box","text":"increase is not reflected in the bond’s inflation measure.","page_number":45,"box":{"x":70,"y":241,"width":403,"height":9}},{"id":"f5e8b6f1-a669-40c8-9ba0-d8a2464d9b31","block_type":"box","text":"In general, the measure used to determine the periodic adjustment of U.S. inflation-indexed bonds is the","page_number":45,"box":{"x":102,"y":264,"width":746,"height":11}},{"id":"47b3c84e-13cf-4859-a713-9e68b4878210","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":45,"box":{"x":69,"y":279,"width":786,"height":11}},{"id":"b674f02a-a439-45d7-be1e-ed93b7ceb1ec","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":45,"box":{"x":69,"y":294,"width":810,"height":11}},{"id":"2789ac4e-d1fa-4637-9093-6fc0de66c609","block_type":"box","text":"food, transpor tation and energy. Inflation-indexed bonds issued by a foreign government are generally adjusted to","page_number":45,"box":{"x":68,"y":309,"width":809,"height":11}},{"id":"ca294f78-2f5b-4f42-bb1a-6660cc43efa1","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":45,"box":{"x":69,"y":324,"width":830,"height":12}},{"id":"a71ac184-c812-4cb3-824f-88f687c467da","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":45,"box":{"x":68,"y":339,"width":833,"height":12}},{"id":"6c910e0d-221b-4ede-a7d2-09bbd5c77e62","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":45,"box":{"x":68,"y":355,"width":840,"height":11}},{"id":"a643fedb-9c5d-4edc-9183-319f9958c3b5","block_type":"box","text":"United States.","page_number":45,"box":{"x":70,"y":370,"width":99,"height":9}},{"id":"22985191-2974-49ac-9581-073114208fb0","block_type":"box","text":"Any increase in the principal amount of an inflation-indexed bond will be considered taxable ordinary income,","page_number":45,"box":{"x":101,"y":392,"width":774,"height":12}},{"id":"11bc2604-4958-4b80-90e6-2a6e8b31aba5","block_type":"box","text":"even though investors do not receive their principal until maturity.","page_number":45,"box":{"x":69,"y":408,"width":464,"height":11}},{"id":"eee98a9a-706b-4e91-9ec4-3dce0445740c","block_type":"box","text":"Investment Grade Debt Obligations.","page_number":45,"box":{"x":102,"y":430,"width":252,"height":11}},{"id":"345e4351-be3b-4408-a391-badb7156e353","block_type":"box","text":"Cer tain Funds may invest in “investment grade securities,” which are","page_number":45,"box":{"x":360,"y":430,"width":493,"height":11}},{"id":"27a95c98-3813-4169-841e-f1efbb0d96f9","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":45,"box":{"x":69,"y":445,"width":823,"height":12}},{"id":"506a24ec-8da4-4625-bbf7-133228221424","block_type":"box","text":"Manager. Cer tain Funds may invest in debt securities rated Aaa by Moody’s or AAA by S&P. It should be noted that","page_number":45,"box":{"x":70,"y":460,"width":815,"height":12}},{"id":"c8820429-2a45-4844-94d7-2ecd44317933","block_type":"box","text":"debt obligations rated in the lowest of the top four ratings (","page_number":45,"box":{"x":69,"y":475,"width":420,"height":12}},{"id":"c212483a-fcf7-4a96-bd5e-102713158ea3","block_type":"box","text":"i.e.","page_number":45,"box":{"x":492,"y":476,"width":20,"height":8}},{"id":"e6789b45-7278-4dd2-9b0b-7b85bb8069a6","block_type":"box","text":", “Baa” by Moody’s or “BBB” by S&P) are considered","page_number":45,"box":{"x":514,"y":476,"width":377,"height":11}},{"id":"44d922bc-37ef-4336-864b-54a7a2b2986a","block_type":"box","text":"to have some speculative characteristics and are more sensitive to economic change than higher rated securities. If","page_number":45,"box":{"x":68,"y":491,"width":829,"height":11}},{"id":"b1129342-3fb1-4458-9e5c-e6e7785a1f9c","block_type":"box","text":"an investment grade security of a Fund is subsequently downgraded below investment grade, the Fund’s Manager will","page_number":45,"box":{"x":69,"y":506,"width":836,"height":11}},{"id":"3727a2dc-412b-4b76-b80e-26bb88af8561","block_type":"box","text":"consider such an event in determining whether the Fund should continue to hold the security. Subject to its","page_number":45,"box":{"x":69,"y":521,"width":763,"height":11}},{"id":"1948d2d0-1af2-4911-827e-779b68f34b6f","block_type":"box","text":"investment strategies, there is no limit on the amount of such downgraded securities a Fund may hold.","page_number":45,"box":{"x":70,"y":536,"width":731,"height":11}},{"id":"58935d52-a6c2-417d-b20c-6d11d67c3029","block_type":"box","text":"See Appendix A to this SAI for a description of applicable securities ratings.","page_number":45,"box":{"x":102,"y":559,"width":536,"height":11}},{"id":"18c50838-aedb-47d0-b13c-aa91e30dba88","block_type":"box","text":"High Yield Investments (“Junk Bonds”).","page_number":45,"box":{"x":102,"y":582,"width":278,"height":11}},{"id":"5ea5793a-777d-49a1-b8be-7cfa3b15206f","block_type":"box","text":"Non-investment grade or “high yield” fixed-income or conver tible securities commonly known to investors as","page_number":45,"box":{"x":102,"y":604,"width":767,"height":11}},{"id":"abbcdfb6-611c-45a6-b4b0-c3fca82504ce","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":45,"box":{"x":70,"y":619,"width":834,"height":11}},{"id":"ec270428-b56b-4135-a623-ce2cb9681026","block_type":"box","text":"that Fund management believes are of comparable quality. While generally providing greater income and oppor tunity","page_number":45,"box":{"x":68,"y":634,"width":828,"height":12}},{"id":"eba16093-8c27-45d0-a9bf-9e53b409c473","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":45,"box":{"x":68,"y":649,"width":841,"height":12}},{"id":"9a83bbb4-dcdb-43db-96ec-4a9ace76c617","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":45,"box":{"x":69,"y":664,"width":827,"height":12}},{"id":"3c6783f8-3377-46fa-bee4-0b1c891aaf83","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":45,"box":{"x":70,"y":680,"width":830,"height":11}},{"id":"d3b95dda-0a18-4b36-8082-e23da104899d","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":45,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"6a23f7f6-e2c2-4607-83d8-8d74ade36423","block_type":"box","text":"ratings may from time to time change, positively or negatively, to reflect developments regarding the issuer’s financial","page_number":45,"box":{"x":69,"y":710,"width":838,"height":11}},{"id":"8b627394-bc19-4d03-98f0-f0d153534ae2","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":45,"box":{"x":69,"y":725,"width":817,"height":11}},{"id":"55a4f6eb-a953-49e9-a381-e1adde8acd0c","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":45,"box":{"x":69,"y":740,"width":837,"height":11}},{"id":"c8a4f62d-ba9f-4304-9b8e-302824d9c4a9","block_type":"box","text":"risk than higher rated securities.","page_number":45,"box":{"x":69,"y":755,"width":230,"height":11}},{"id":"44239f9a-2a39-4a80-a810-de0022221c0b","block_type":"box","text":"The major risks in junk bond investments include the following:","page_number":45,"box":{"x":101,"y":778,"width":447,"height":11}},{"id":"e3a2dd30-136a-403d-8554-cc9c60c3136b","block_type":"box","text":"•","page_number":45,"box":{"x":69,"y":801,"width":6,"height":4}},{"id":"29402604-ba25-4d79-9dee-afda7658ed06","block_type":"box","text":"Junk bonds may be issued by less creditwor thy companies. These securities are vulnerable to adverse changes","page_number":45,"box":{"x":101,"y":798,"width":796,"height":11}},{"id":"30687b1e-f7eb-47ff-ab62-e2d5a891671b","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":45,"box":{"x":102,"y":813,"width":792,"height":11}},{"id":"270cf128-c6ca-4d31-8004-f9c83079c8a3","block_type":"box","text":"interest or principal payment obligations because of an economic downturn, specific issuer developments or the","page_number":45,"box":{"x":102,"y":828,"width":799,"height":12}},{"id":"06c00b26-5c8a-4023-8acd-9630a673a44c","block_type":"box","text":"unavailability of additional financing.","page_number":45,"box":{"x":102,"y":843,"width":256,"height":12}},{"id":"f7125dda-9065-47c8-877e-4efeb4e89aa1","block_type":"box","text":"•","page_number":45,"box":{"x":69,"y":866,"width":6,"height":5}},{"id":"90ce7494-fcc5-43b7-9535-139bb9c9eac2","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":45,"box":{"x":101,"y":863,"width":797,"height":12}},{"id":"b6fdfbdf-304a-4902-8b46-7343478abf53","block_type":"box","text":"investment grade bonds. If the issuer experiences financial stress, it may be unable to meet its debt obligations.","page_number":45,"box":{"x":102,"y":879,"width":804,"height":11}},{"id":"b4062d11-361e-4582-8af8-f9807913578f","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":45,"box":{"x":101,"y":894,"width":769,"height":11}},{"id":"4df2ff11-8216-4ad6-a656-a81923fb967f","block_type":"box","text":"II-10","page_number":45,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"bc73cf74-69a1-44f9-8153-3f62ca930926","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":45,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"43775bec-9dad-4a01-a42e-33aa4a98ab4e","block_type":"box","text":"unavailability of additional financing. Issuers of high yield securities are often in the growth stage of their","page_number":46,"box":{"x":102,"y":45,"width":746,"height":11}},{"id":"fd2664ff-0409-4088-bcfa-5160df14db63","block_type":"box","text":"development and/or involved in a reorganization or takeover.","page_number":46,"box":{"x":101,"y":60,"width":432,"height":11}},{"id":"fc98c731-b06e-49e9-9e02-5ddf919e47c7","block_type":"box","text":"•","page_number":46,"box":{"x":69,"y":83,"width":6,"height":4}},{"id":"bd136123-9298-492a-b6b3-db50df65fcc5","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":46,"box":{"x":101,"y":80,"width":808,"height":11}},{"id":"b0c0c297-1092-4886-9077-98e432c117c2","block_type":"box","text":"senior obligations are generally paid off before the junior obligations, which will potentially limit a Fund’s ability","page_number":46,"box":{"x":102,"y":95,"width":789,"height":11}},{"id":"3c9458f4-c5ec-42e6-a2e5-e733d9b84541","block_type":"box","text":"to fully recover principal or to receive interest payments when senior securities are in default. Thus, investors in","page_number":46,"box":{"x":101,"y":110,"width":796,"height":11}},{"id":"43c5787d-f5a0-4c3f-96cd-f037e858084f","block_type":"box","text":"high yield securities have a lower degree of protection with respect to principal and interest payments than do","page_number":46,"box":{"x":102,"y":125,"width":782,"height":12}},{"id":"16acce62-3f0f-40dc-8a64-890977b9f188","block_type":"box","text":"investors in higher rated securities.","page_number":46,"box":{"x":102,"y":141,"width":249,"height":11}},{"id":"e077cb01-1d83-4fe0-bd35-d36cb43f4862","block_type":"box","text":"•","page_number":46,"box":{"x":69,"y":163,"width":6,"height":5}},{"id":"4a39c5c4-9b3b-402e-8f54-e5c4eb482962","block_type":"box","text":"Junk bonds frequently have redemption features that permit an issuer to repurchase the security from a Fund","page_number":46,"box":{"x":101,"y":161,"width":780,"height":11}},{"id":"b817658f-14e0-4e30-85da-40de3040af19","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":46,"box":{"x":102,"y":176,"width":784,"height":11}},{"id":"91ba06c7-e102-4603-ba10-8ce9d0732ec3","block_type":"box","text":"lower yields and may lose income.","page_number":46,"box":{"x":102,"y":191,"width":242,"height":11}},{"id":"4da65422-10c6-4542-9be4-48fe51a0ec7f","block_type":"box","text":"•","page_number":46,"box":{"x":69,"y":214,"width":6,"height":4}},{"id":"6954b905-821a-4fc6-96bb-a18a5c88c6fd","block_type":"box","text":"Prices of junk bonds are subject to extreme price fluctuations. Negative economic developments may have a","page_number":46,"box":{"x":102,"y":211,"width":772,"height":11}},{"id":"9da6288e-3ea6-4a92-9298-ab0419a368ba","block_type":"box","text":"greater impact on the prices of junk bonds than on those of other higher rated fixed-income securities.","page_number":46,"box":{"x":101,"y":226,"width":729,"height":11}},{"id":"ac0cde9d-b164-45ca-8893-850066ad7749","block_type":"box","text":"•","page_number":46,"box":{"x":69,"y":249,"width":6,"height":5}},{"id":"93c0d673-1fb5-4f34-856d-67d3504aaa07","block_type":"box","text":"Junk bonds may be less liquid than higher rated fixed-income securities even under normal economic conditions.","page_number":46,"box":{"x":101,"y":246,"width":802,"height":11}},{"id":"71e00d35-2cad-4dc8-a25a-3f53aff374fd","block_type":"box","text":"Under cer tain economic and/or market conditions, a Fund may have difficulty disposing of cer tain high yield","page_number":46,"box":{"x":102,"y":261,"width":768,"height":12}},{"id":"7f8e369a-4083-40b6-bde1-412d63376d1b","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":46,"box":{"x":102,"y":276,"width":805,"height":12}},{"id":"f2bd441f-f738-413e-a146-00a1e448b607","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":46,"box":{"x":102,"y":292,"width":781,"height":11}},{"id":"2e6a1d96-4561-4843-b729-ce527a0958f1","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":46,"box":{"x":102,"y":307,"width":767,"height":11}},{"id":"c28274fd-f9d5-4852-a3e4-2651ae0d79f5","block_type":"box","text":"liquid than higher rated bonds, judgment may play a greater role in valuing cer tain of a Fund’s por tfolio securities","page_number":46,"box":{"x":102,"y":322,"width":806,"height":11}},{"id":"47194742-6655-4635-b8bb-8e03508249c2","block_type":"box","text":"than in the case of securities trading in a more liquid market.","page_number":46,"box":{"x":101,"y":337,"width":436,"height":11}},{"id":"8184261b-1aa5-4223-b625-53bc27b48a4a","block_type":"box","text":"•","page_number":46,"box":{"x":69,"y":360,"width":6,"height":5}},{"id":"d4f72d27-069e-481d-a972-a4809da5a983","block_type":"box","text":"The secondary markets for high yield securities are not as liquid as the secondary markets for higher rated","page_number":46,"box":{"x":101,"y":357,"width":763,"height":11}},{"id":"4a69fe10-d5cb-480d-8593-397547ff06a7","block_type":"box","text":"securities. The secondary markets for high yield securities are concentrated in relatively few market makers and","page_number":46,"box":{"x":102,"y":372,"width":798,"height":11}},{"id":"a976623d-0b5b-4003-a067-5f36c2abeb04","block_type":"box","text":"par ticipants in the markets are mostly institutional investors, including insurance companies, banks, other","page_number":46,"box":{"x":102,"y":388,"width":759,"height":11}},{"id":"17373887-f5aa-454e-a243-a2c32473f832","block_type":"box","text":"financial institutions and mutual funds. In addition, the trading volume for high yield securities is generally lower","page_number":46,"box":{"x":101,"y":402,"width":798,"height":12}},{"id":"5e4d9e1b-65ed-4235-86fe-122cf5cfe77e","block_type":"box","text":"than that for higher rated securities and the secondary markets could contract under adverse market or","page_number":46,"box":{"x":101,"y":418,"width":739,"height":11}},{"id":"dc2b8bce-2c45-4f45-8f6d-eda3429624c9","block_type":"box","text":"economic conditions independent of any specific adverse changes in the condition of a par ticular issuer. Under","page_number":46,"box":{"x":101,"y":433,"width":792,"height":11}},{"id":"3a88cd37-65c2-4061-9472-3fa1482d18eb","block_type":"box","text":"cer tain economic and/or market conditions, a Fund may have difficulty disposing of cer tain high yield securities","page_number":46,"box":{"x":101,"y":448,"width":797,"height":11}},{"id":"d4fa695c-6592-48df-bd64-6d100e89ae1c","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":46,"box":{"x":101,"y":463,"width":791,"height":11}},{"id":"a571c694-d386-4098-aa67-5098d407ad9e","block_type":"box","text":"affect the market price of the high yield security, which may result in increased difficulty selling the par ticular","page_number":46,"box":{"x":102,"y":478,"width":777,"height":11}},{"id":"641e7245-e3a7-4d9b-9720-1c70b08caf66","block_type":"box","text":"issue and obtaining accurate market quotations on the issue when valuing a Fund’s assets. Market quotations","page_number":46,"box":{"x":102,"y":493,"width":788,"height":11}},{"id":"7d288422-7b44-42fb-a54e-f429b9c694a5","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":46,"box":{"x":102,"y":508,"width":797,"height":12}},{"id":"76281b20-82fc-4625-965d-d7b7e156ad5b","block_type":"box","text":"actual prices available for a purchase or sale. When the secondary market for high yield securities becomes","page_number":46,"box":{"x":102,"y":523,"width":769,"height":12}},{"id":"99a7585c-780a-4959-b7d9-cd28b17e3e54","block_type":"box","text":"more illiquid, or in the absence of readily available market quotations for such securities, the relative lack of","page_number":46,"box":{"x":102,"y":538,"width":772,"height":12}},{"id":"37b1493b-af1d-4d8b-90e7-73b7081cd8c2","block_type":"box","text":"reliable objective data makes it more difficult to value a Fund’s securities, and judgment plays a more impor tant","page_number":46,"box":{"x":102,"y":554,"width":801,"height":11}},{"id":"60d3caaa-1f47-4ddd-aa86-9007fe5b4077","block_type":"box","text":"role in determining such valuations.","page_number":46,"box":{"x":102,"y":569,"width":252,"height":11}},{"id":"2b10f6cb-f8a8-4748-9959-2b8da1b1a5c2","block_type":"box","text":"•","page_number":46,"box":{"x":69,"y":592,"width":6,"height":4}},{"id":"25b82b75-b632-4866-8fee-1a1cf5578824","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":46,"box":{"x":101,"y":589,"width":808,"height":11}},{"id":"1e6539c1-5b42-4696-9b88-c2a64ed3ffdc","block_type":"box","text":"a defaulting issuer.","page_number":46,"box":{"x":102,"y":604,"width":134,"height":11}},{"id":"4cfe2d50-af23-47d6-9aa3-89c7472307f4","block_type":"box","text":"•","page_number":46,"box":{"x":69,"y":627,"width":6,"height":5}},{"id":"9073f27f-e733-410e-ad82-c6895966abb7","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":46,"box":{"x":101,"y":624,"width":800,"height":11}},{"id":"5e82c0c5-60af-42f9-ac2c-a19550ae4c25","block_type":"box","text":"or expectation of adverse news, whether or not it is based on fundamental analysis. Additionally, prices for high","page_number":46,"box":{"x":102,"y":639,"width":793,"height":12}},{"id":"38eee1ae-0da3-4bc1-b5ca-ab8b6b33c8ce","block_type":"box","text":"yield securities may be affected by legislative and regulatory developments. These developments could adversely","page_number":46,"box":{"x":101,"y":654,"width":808,"height":12}},{"id":"ffa2e0d7-f0a3-4ec7-bfba-e989173811a6","block_type":"box","text":"affect a Fund’s NAV and investment practices, the secondary market for high yield securities, the financial","page_number":46,"box":{"x":102,"y":669,"width":756,"height":12}},{"id":"edaf6094-f287-4df3-bcba-32527b87f4fe","block_type":"box","text":"condition of issuers of these securities and the value and liquidity of outstanding high yield securities, especially","page_number":46,"box":{"x":101,"y":685,"width":803,"height":11}},{"id":"34b7fca6-5bb3-4416-ae8c-25829c360320","block_type":"box","text":"in a thinly traded market. For example, federal legislation requiring the divestiture by federally insured savings","page_number":46,"box":{"x":102,"y":700,"width":781,"height":11}},{"id":"1d2652e3-c6ee-468d-95ac-f984a29e8f59","block_type":"box","text":"and loan associations of their investments in high yield bonds and limiting the deductibility of interest by cer tain","page_number":46,"box":{"x":102,"y":715,"width":798,"height":11}},{"id":"811ff5e0-8ded-4978-8d74-984c01ed5ba6","block_type":"box","text":"corporate issuers of high yield bonds adversely affected the market in the past.","page_number":46,"box":{"x":101,"y":730,"width":566,"height":11}},{"id":"848217a0-725d-4e14-bdc4-39dc28c0aff6","block_type":"box","text":"•","page_number":46,"box":{"x":69,"y":753,"width":6,"height":5}},{"id":"1246aaa0-0b9f-4ae7-9823-c1ba90852072","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":46,"box":{"x":101,"y":750,"width":751,"height":11}},{"id":"32937a75-cd49-4430-a94e-809a07731a0c","block_type":"box","text":"investment grade security’s principal and interest payments, but does not address market value risk. Because","page_number":46,"box":{"x":102,"y":766,"width":786,"height":11}},{"id":"de07c45e-a235-4f12-8450-3d27d4e59e59","block_type":"box","text":"such ratings of the ratings agencies may not always reflect current conditions and events, in addition to using","page_number":46,"box":{"x":102,"y":780,"width":782,"height":12}},{"id":"150a0438-4a82-4c44-a669-9f4f02fb8d78","block_type":"box","text":"recognized rating agencies and other sources, the Manager or sub-adviser per forms its own analysis of the","page_number":46,"box":{"x":102,"y":795,"width":762,"height":12}},{"id":"39e34ccd-fd7e-425e-b2b8-2bd26dc49355","block_type":"box","text":"issuers whose non-investment grade securities a Fund holds. Because of this, the Fund’s per formance may","page_number":46,"box":{"x":102,"y":811,"width":767,"height":11}},{"id":"0869d41d-2530-4ecb-9ea7-294d9104ff37","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":46,"box":{"x":101,"y":826,"width":806,"height":11}},{"id":"0f328518-306b-4b3f-a9e1-76230c1340fc","block_type":"box","text":"higher-rated securities.","page_number":46,"box":{"x":102,"y":841,"width":161,"height":11}},{"id":"d3b4aca1-01f8-4a26-9315-10d56319e882","block_type":"box","text":"In selecting non-investment grade securities, the Manager or sub-adviser considers factors such as those","page_number":46,"box":{"x":102,"y":863,"width":751,"height":12}},{"id":"3b406dd6-767b-4384-800b-0a7f02d8c481","block_type":"box","text":"relating to the creditwor thiness of issuers, the ratings and per formance of the securities, the protections afforded","page_number":46,"box":{"x":69,"y":879,"width":814,"height":11}},{"id":"ef1573c7-52b1-471b-b7bd-1a272bb96f91","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":46,"box":{"x":68,"y":894,"width":812,"height":11}},{"id":"46a72873-0569-4e91-a02a-ea3b6d43c317","block_type":"box","text":"investment grade securities held by the Fund for their ability to make required principal and interest payments, as","page_number":46,"box":{"x":70,"y":909,"width":808,"height":11}},{"id":"b78da4aa-fccc-4dba-a3cd-5964d883befe","block_type":"box","text":"II-11","page_number":46,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"87728bc9-a76c-47c0-ad6f-00e50090fbb8","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":46,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"575577da-1b7e-46b0-89bb-e154085a4116","block_type":"box","text":"well as in an effor t to control the liquidity of the Fund so that it can meet redemption requests. If a security’s rating","page_number":47,"box":{"x":68,"y":45,"width":825,"height":11}},{"id":"9f121396-05f9-481f-b6fb-5fea01c959f6","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":47,"box":{"x":70,"y":60,"width":779,"height":11}},{"id":"dfffd35a-ce88-4bd7-8062-591f0d16087f","block_type":"box","text":"consider whether the Fund should continue to hold the security.","page_number":47,"box":{"x":69,"y":75,"width":451,"height":11}},{"id":"473124f4-d46f-4bfa-8da8-36cc3a6a9fef","block_type":"box","text":"In the event that a Fund investing in high yield securities experiences an unexpected level of net redemptions,","page_number":47,"box":{"x":102,"y":98,"width":782,"height":11}},{"id":"d0fa4b25-913e-43e5-866e-efb313cd09d5","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":47,"box":{"x":68,"y":113,"width":825,"height":11}},{"id":"ad19eede-94d9-4278-aec6-e279a11d4cc3","block_type":"box","text":"upon which the Fund’s rate of return is based.","page_number":47,"box":{"x":69,"y":128,"width":328,"height":11}},{"id":"1b6632ca-2cf0-43ee-b6ab-03f33ed1c713","block_type":"box","text":"The costs attributable to investing in the junk bond markets are usually higher for several reasons, such as","page_number":47,"box":{"x":101,"y":150,"width":764,"height":12}},{"id":"7fd95069-b5c0-4dbe-97eb-f5beb8ebaf40","block_type":"box","text":"higher investment research costs and higher commission costs.","page_number":47,"box":{"x":69,"y":166,"width":455,"height":11}},{"id":"d845ded5-90f5-4712-aa9b-13ce206e0a2f","block_type":"box","text":"Mezzanine Investments.","page_number":47,"box":{"x":102,"y":188,"width":170,"height":9}},{"id":"9afaca5c-f93f-4000-9225-91a74b392d9a","block_type":"box","text":"Cer tain Funds, consistent with their restrictions on investing in securities of a specific","page_number":47,"box":{"x":279,"y":188,"width":612,"height":12}},{"id":"104ce0d5-4070-43c3-b0ce-38ade86de0ac","block_type":"box","text":"credit quality, may invest in cer tain high yield securities known as mezzanine investments, which are subordinated","page_number":47,"box":{"x":69,"y":204,"width":813,"height":11}},{"id":"d2090d6b-3c44-494a-aa34-4728b07161e0","block_type":"box","text":"debt securities which are generally issued in private placements in connection with an equity security (","page_number":47,"box":{"x":69,"y":219,"width":729,"height":11}},{"id":"c975ea06-e3ba-434c-b627-9e825cc10180","block_type":"box","text":"e.g.","page_number":47,"box":{"x":800,"y":220,"width":24,"height":10}},{"id":"bc0d2e0a-4255-4671-9a96-d06f131f7d2d","block_type":"box","text":", with","page_number":47,"box":{"x":827,"y":219,"width":36,"height":10}},{"id":"5a3ed475-4035-458a-b104-a3cb485dea9c","block_type":"box","text":"attached warrants). Such mezzanine investments may be issued with or without registration rights. Similar to other","page_number":47,"box":{"x":69,"y":234,"width":818,"height":11}},{"id":"58910f0d-d831-4d51-baf7-390a5bba048c","block_type":"box","text":"high yield securities, maturities of mezzanine investments are typically seven to ten years, but the expected average","page_number":47,"box":{"x":69,"y":249,"width":827,"height":11}},{"id":"0e10823a-6478-4f4d-a6b0-796e4ea48167","block_type":"box","text":"life is significantly shor ter at three to five years. Mezzanine investments are usually unsecured and subordinate to","page_number":47,"box":{"x":70,"y":264,"width":813,"height":11}},{"id":"75fa46ec-525e-4201-ae39-7740628a058b","block_type":"box","text":"other obligations of the issuer.","page_number":47,"box":{"x":69,"y":279,"width":216,"height":11}},{"id":"8f796db7-85ab-4827-939e-728b95bee107","block_type":"box","text":"Pay-in-kind Bonds.","page_number":47,"box":{"x":102,"y":302,"width":127,"height":11}},{"id":"41dcf9ef-204e-4910-8390-db91f23767b5","block_type":"box","text":"Cer tain Funds may invest in pay-in-kind, or PIK, bonds. PIK bonds are bonds which pay","page_number":47,"box":{"x":236,"y":302,"width":615,"height":11}},{"id":"2ded5460-2d45-449f-9b11-a4ec8902695e","block_type":"box","text":"interest through the issuance of additional debt or equity securities. Similar to zero coupon obligations, pay-in-kind","page_number":47,"box":{"x":70,"y":317,"width":813,"height":11}},{"id":"585d7967-c0e6-4191-8a23-e2dca3d2936b","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":47,"box":{"x":69,"y":332,"width":820,"height":11}},{"id":"11e4677b-5898-43d6-a273-7e87b3075466","block_type":"box","text":"unless a por tion of such securities is sold and, if the issuer defaults, a Fund may obtain no return at all on its","page_number":47,"box":{"x":69,"y":347,"width":784,"height":11}},{"id":"55e64943-48cd-4b8d-b491-4cbfe32d66e0","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":47,"box":{"x":70,"y":362,"width":783,"height":11}},{"id":"34cfb518-2ace-48c1-aaaa-9f88d435d2df","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":47,"box":{"x":68,"y":377,"width":790,"height":11}},{"id":"91f43478-f647-4895-89bc-0cc3a66ec23e","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":47,"box":{"x":68,"y":392,"width":831,"height":12}},{"id":"0e027e09-c60c-498d-a265-8f94beb83d69","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":47,"box":{"x":69,"y":407,"width":830,"height":12}},{"id":"a4f2f7f2-12cc-4f5e-bfc9-28050a669540","block_type":"box","text":"federal income and excise taxes, each Fund may be required to distribute income accrued with respect to these","page_number":47,"box":{"x":68,"y":423,"width":798,"height":11}},{"id":"fb68ed52-105a-49be-98f2-1196187882ce","block_type":"box","text":"securities and may have to dispose of por tfolio securities under disadvantageous circumstances in order to generate","page_number":47,"box":{"x":69,"y":438,"width":835,"height":11}},{"id":"0714ee03-7f5f-4c83-9df3-82ceade0d28e","block_type":"box","text":"cash to satisfy these distribution requirements.","page_number":47,"box":{"x":69,"y":453,"width":336,"height":11}},{"id":"bb28acbc-2325-4274-83ef-c9e6dc3cdf81","block_type":"box","text":"Supranational Entities.","page_number":47,"box":{"x":102,"y":476,"width":160,"height":10}},{"id":"92f7722f-873e-4b2d-b488-2d93dac98201","block_type":"box","text":"A Fund may invest in debt securities of supranational entities. Examples of such entities","page_number":47,"box":{"x":268,"y":475,"width":629,"height":12}},{"id":"b3b9cfd9-76c9-418f-9044-1ec4ee7a1787","block_type":"box","text":"include the International Bank for Reconstruction and Development (the World Bank), the European Steel and Coal","page_number":47,"box":{"x":70,"y":491,"width":814,"height":11}},{"id":"965b1697-e9aa-4cda-a2de-86ec96c5f1cc","block_type":"box","text":"Community, the Asian Development Bank and the Inter-American Development Bank. The government members, or","page_number":47,"box":{"x":69,"y":506,"width":817,"height":11}},{"id":"afe3bf7e-6f77-4611-bf35-572444fe7ce0","block_type":"box","text":"“stockholders,” usually make initial capital contributions to the supranational entity and in many cases are","page_number":47,"box":{"x":70,"y":521,"width":759,"height":11}},{"id":"f0437b8e-0642-4405-9b0b-f7a251274616","block_type":"box","text":"committed to make additional capital contributions if the supranational entity is unable to repay its borrowings. There","page_number":47,"box":{"x":69,"y":536,"width":836,"height":11}},{"id":"118de361-f5c5-40fe-bf77-6beac7c82add","block_type":"box","text":"is no guarantee that one or more stockholders of a supranational entity will continue to make any necessary","page_number":47,"box":{"x":70,"y":551,"width":772,"height":11}},{"id":"f3c26597-28ae-4a4a-819a-616108752e20","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":47,"box":{"x":69,"y":566,"width":830,"height":11}},{"id":"5ffb1853-b797-49cd-8901-f9e3e26f9562","block_type":"box","text":"principal on its debt securities, and a Fund may lose money on such investments.","page_number":47,"box":{"x":70,"y":582,"width":580,"height":10}},{"id":"5cd0df05-1665-42b9-8969-8acd4c840f58","block_type":"box","text":"Depositary Receipts (ADRs, EDRs and GDRs).","page_number":47,"box":{"x":102,"y":604,"width":334,"height":11}},{"id":"e8aeb0df-aa33-44b5-a61a-bc922a2b1abc","block_type":"box","text":"Cer tain Funds may invest in the securities of foreign issuers in","page_number":47,"box":{"x":442,"y":604,"width":446,"height":11}},{"id":"ff2534a6-c907-47d9-ac46-b4b1e907d651","block_type":"box","text":"the form of Depositary Receipts or other securities conver tible into securities of foreign issuers. Depositary Receipts","page_number":47,"box":{"x":68,"y":619,"width":835,"height":11}},{"id":"26501e57-359b-4ccb-86e4-4494399a7a67","block_type":"box","text":"may not necessarily be denominated in the same currency as the underlying securities into which they may be","page_number":47,"box":{"x":69,"y":634,"width":784,"height":12}},{"id":"d42e87c2-e08d-4b57-8b5a-cd70f7d499dd","block_type":"box","text":"conver ted. The Fund may invest in both sponsored and unsponsored American Depositary Receipts (“ADRs”),","page_number":47,"box":{"x":69,"y":650,"width":781,"height":11}},{"id":"07feb449-4730-4e73-8b56-72ae4e327e92","block_type":"box","text":"European Depositary Receipts (“EDRs”), Global Depositary Receipts (“GDRs”) and other similar global instruments.","page_number":47,"box":{"x":70,"y":665,"width":823,"height":11}},{"id":"7d2a375b-5baf-4b3a-909d-6a6b6aa1de98","block_type":"box","text":"ADRs typically are issued by an American bank or trust company and evidence ownership of underlying securities","page_number":47,"box":{"x":68,"y":680,"width":804,"height":11}},{"id":"16e4fda9-66db-4637-aa61-2f5f0d5fe52c","block_type":"box","text":"issued by a foreign corporation. EDRs, which are sometimes referred to as Continental Depositary Receipts, are","page_number":47,"box":{"x":70,"y":695,"width":799,"height":11}},{"id":"42cdc7ac-1f24-4b47-b4dd-6840dbffa208","block_type":"box","text":"receipts issued in Europe, typically by foreign banks and trust companies, that evidence ownership of either foreign","page_number":47,"box":{"x":69,"y":710,"width":821,"height":11}},{"id":"d67515d8-2b79-41cc-a4e8-4aa08d8d1518","block_type":"box","text":"or domestic underlying securities. GDRs are depositary receipts structured like global debt issues to facilitate trading","page_number":47,"box":{"x":69,"y":725,"width":837,"height":11}},{"id":"c448e717-c572-41f4-aafc-9e0c1540a5a8","block_type":"box","text":"on an international basis. In addition to investment risks associated with the underlying issuer, Depositary Receipts","page_number":47,"box":{"x":69,"y":740,"width":825,"height":11}},{"id":"8517e53a-b67d-4e28-9238-14b80323cf45","block_type":"box","text":"expose a Fund to additional risks associated with the non-uniform terms that apply to Depositary Receipt programs,","page_number":47,"box":{"x":69,"y":755,"width":825,"height":11}},{"id":"17943691-312f-4a40-b8b5-76f3c57a8000","block_type":"box","text":"credit exposure to the depository bank and to the sponsors and other par ties with whom the depository bank","page_number":47,"box":{"x":69,"y":771,"width":780,"height":10}},{"id":"33f224f8-08ab-4c36-987c-76a85768f098","block_type":"box","text":"establishes the programs, currency risk and the risk of an illiquid market for Depositary Receipts. Unsponsored ADR,","page_number":47,"box":{"x":69,"y":785,"width":833,"height":12}},{"id":"34ac4632-8613-4d37-918b-c3dcde9646ee","block_type":"box","text":"EDR and GDR programs are organized independently and without the cooperation of the issuer of the underlying","page_number":47,"box":{"x":70,"y":801,"width":796,"height":11}},{"id":"0aa16715-2d98-44e5-b195-1aaa881294d3","block_type":"box","text":"securities. Unsponsored programs generally expose investors to greater risks than sponsored programs and do not","page_number":47,"box":{"x":69,"y":816,"width":822,"height":11}},{"id":"da7c26f3-3548-4220-b2b2-fb9c50673ba1","block_type":"box","text":"provide holders with many of the shareholder benefits that come from investing in a sponsored Depositary Receipt.","page_number":47,"box":{"x":70,"y":831,"width":820,"height":11}},{"id":"e9738526-6471-455c-b51e-f5f8ec46c7f6","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":47,"box":{"x":68,"y":846,"width":827,"height":11}},{"id":"3d1ec105-8316-4178-ad5f-22f57909bcf1","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":47,"box":{"x":70,"y":861,"width":825,"height":11}},{"id":"669f9e34-8759-4558-a2e7-7a06aa368297","block_type":"box","text":"issuer. Depositary Receipts are generally subject to the same risks as the foreign securities that they evidence or","page_number":47,"box":{"x":70,"y":876,"width":810,"height":11}},{"id":"c847e457-83b4-4ec1-bbb7-96b5ebae9057","block_type":"box","text":"into which they may be conver ted. Investments in ADRs, EDRs and GDRs present additional investment","page_number":47,"box":{"x":70,"y":891,"width":737,"height":11}},{"id":"20fc5fac-bd76-4f69-94d4-2cce28c63f4f","block_type":"box","text":"considerations as described under “Foreign Investment Risks.”","page_number":47,"box":{"x":69,"y":907,"width":449,"height":11}},{"id":"4af9080f-1c00-4cf0-bf49-e13c11ae7047","block_type":"box","text":"II-12","page_number":47,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"0e30725f-f60c-42eb-8298-593c799a2515","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":47,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7fbb0bde-0534-4edb-b286-24bcf11fa7b0","block_type":"box","text":"Derivatives.","page_number":48,"box":{"x":102,"y":45,"width":84,"height":9}},{"id":"a0ca7cb4-27da-4168-81c1-caf5a3ac3dd0","block_type":"box","text":"General.","page_number":48,"box":{"x":102,"y":67,"width":58,"height":9}},{"id":"964b9642-0eac-470d-ae03-f5b66b87a8e8","block_type":"box","text":"Each Fund may use instruments referred to as derivatives, which are financial instruments that derive","page_number":48,"box":{"x":167,"y":67,"width":725,"height":11}},{"id":"b93ed41b-1575-4456-bc89-3fc57da49534","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":48,"box":{"x":68,"y":82,"width":836,"height":12}},{"id":"fc094318-9578-4bce-81ff-a4f5d6a9642d","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":48,"box":{"x":70,"y":98,"width":829,"height":11}},{"id":"0cde691d-6db0-49cc-a217-d3c0ace00cff","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":48,"box":{"x":70,"y":113,"width":830,"height":11}},{"id":"fffec479-27ad-4de9-bb21-1d4f5390720c","block_type":"box","text":"efficiently than with other transactions. Cer tain Funds may use derivatives to maintain a por tion of their long and","page_number":48,"box":{"x":69,"y":128,"width":804,"height":11}},{"id":"8c8fd08c-6810-49ac-ab8d-fb9854487b33","block_type":"box","text":"shor t positions. Unless otherwise permitted, no Fund may use derivatives to gain exposure to an asset or asset","page_number":48,"box":{"x":69,"y":143,"width":800,"height":11}},{"id":"b6ecf8f5-afa6-4dcd-ba8f-8d974397a965","block_type":"box","text":"class it is prohibited by its investment restrictions from purchasing directly. As described below, derivatives can be","page_number":48,"box":{"x":69,"y":158,"width":816,"height":11}},{"id":"c1d788c5-7177-4f27-9cfd-91c1837e78a8","block_type":"box","text":"used for hedging or speculative purposes. Funds will engage in transaction-level payment netting,","page_number":48,"box":{"x":69,"y":173,"width":691,"height":11}},{"id":"5d1c9c26-fb5f-4aa1-83c1-54cf94c98692","block_type":"box","text":"i.e.","page_number":48,"box":{"x":768,"y":173,"width":20,"height":9}},{"id":"62057505-a51c-4e8c-8bb2-85475193b95f","block_type":"box","text":", the payment","page_number":48,"box":{"x":791,"y":173,"width":96,"height":11}},{"id":"e1513056-2717-4989-a6b4-71fe0c9cca8c","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":48,"box":{"x":69,"y":188,"width":839,"height":12}},{"id":"ed2c82f6-fbc2-4434-87c2-7edfe7a16318","block_type":"box","text":"be, only the net amount of the two payment streams.","page_number":48,"box":{"x":69,"y":203,"width":378,"height":12}},{"id":"35eae650-467e-415c-a3a5-be0e08212eb3","block_type":"box","text":"Hedging.","page_number":48,"box":{"x":102,"y":226,"width":60,"height":11}},{"id":"59e53284-fd08-427e-8c45-c590cc33f20f","block_type":"box","text":"Each Fund may use derivatives for hedging purposes, in which a derivative is used to offset the risks","page_number":48,"box":{"x":169,"y":226,"width":717,"height":11}},{"id":"57b70e3d-ba75-48e7-98bc-6874070d50a9","block_type":"box","text":"associated with other Fund holdings. Losses on other investments may be substantially reduced by gains on a","page_number":48,"box":{"x":69,"y":241,"width":786,"height":11}},{"id":"bbdf9bad-2962-4bf4-8da4-16370f5ccc67","block_type":"box","text":"derivative that reacts in an opposite manner to market movements. Although hedging may reduce losses, it may also","page_number":48,"box":{"x":69,"y":257,"width":834,"height":11}},{"id":"1238c6cc-2cbb-4644-9a7c-d889b3bed4be","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":48,"box":{"x":69,"y":271,"width":834,"height":12}},{"id":"765a11bf-7230-49d6-9e5e-ab0372514ba5","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":48,"box":{"x":70,"y":286,"width":797,"height":12}},{"id":"651067d0-f0fd-4034-92d6-4df813e9a248","block_type":"box","text":"correlation risk,","page_number":48,"box":{"x":69,"y":302,"width":109,"height":10}},{"id":"a0f3b413-0db6-42aa-bf54-07114a5edfcc","block_type":"box","text":"i.e.","page_number":48,"box":{"x":186,"y":302,"width":20,"height":9}},{"id":"5ff0942f-039d-4b93-a6ba-c23b9a344d5d","block_type":"box","text":", the risk that changes in the value of the derivative will not match those of the holdings being","page_number":48,"box":{"x":209,"y":302,"width":669,"height":11}},{"id":"1a45e322-9f62-4c69-89bc-652ca9061bfc","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":48,"box":{"x":69,"y":317,"width":797,"height":11}},{"id":"c0091fe0-0590-4dca-a41f-4624d81d77c4","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":48,"box":{"x":69,"y":332,"width":835,"height":11}},{"id":"6ec68cec-ef47-4f2f-a0b2-ff4d158595d8","block_type":"box","text":"be effective. No Fund is required to use derivatives to hedge.","page_number":48,"box":{"x":69,"y":347,"width":434,"height":11}},{"id":"d8e1e6a6-dd36-4e90-96ec-08e1f2d926c1","block_type":"box","text":"Speculation.","page_number":48,"box":{"x":102,"y":370,"width":86,"height":11}},{"id":"7e7e4154-d1b5-4cad-bc46-12bc905760ab","block_type":"box","text":"Cer tain Funds may also use derivatives for speculative purposes to seek to enhance returns. The","page_number":48,"box":{"x":195,"y":370,"width":694,"height":11}},{"id":"f731863f-7947-488c-82d6-6bacc2878d6d","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":48,"box":{"x":69,"y":385,"width":831,"height":11}},{"id":"9896e802-a92d-47bc-86d8-07adc9d0c92c","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":48,"box":{"x":70,"y":400,"width":824,"height":11}},{"id":"9d67f971-388e-4bda-8307-129c8f9178de","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":48,"box":{"x":69,"y":415,"width":831,"height":11}},{"id":"8db8d875-b62b-436b-87e6-00d8a0d2a7ad","block_type":"box","text":"in cer tain cases may be unlimited.","page_number":48,"box":{"x":70,"y":430,"width":243,"height":11}},{"id":"1bd8d9b6-9bbf-4cfb-99a1-4bff05f6fa81","block_type":"box","text":"Regulation of Derivatives.","page_number":48,"box":{"x":102,"y":453,"width":180,"height":11}},{"id":"765379fc-9d5a-4c91-8eaf-59eda75ebad6","block_type":"box","text":"Rule 18f-4 Under the Investment Company Act.","page_number":48,"box":{"x":102,"y":475,"width":333,"height":12}},{"id":"de444e92-e6f9-41d9-a5de-be2f66cf52f5","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to","page_number":48,"box":{"x":442,"y":475,"width":458,"height":12}},{"id":"ec7c1787-ce19-4cdf-b93a-d566965bbb60","block_type":"box","text":"enter into Derivatives Transactions (as defined below) and cer tain other transactions notwithstanding the restrictions","page_number":48,"box":{"x":69,"y":491,"width":833,"height":11}},{"id":"4db4442c-5b45-4624-9ab7-40d756cd79ac","block_type":"box","text":"on the issuance of “senior securities” under Section 18 of the Investment Company Act. Section 18 of the","page_number":48,"box":{"x":69,"y":506,"width":759,"height":11}},{"id":"f1787c17-077e-4481-913a-1dbd852a2f37","block_type":"box","text":"Investment Company Act, among other things, prohibits open-end funds, including the Funds, from issuing or selling","page_number":48,"box":{"x":70,"y":521,"width":825,"height":11}},{"id":"0c5bd2c4-72e2-49ec-9e63-626ce5563055","block_type":"box","text":"any “senior security,” other than borrowing from a bank (subject to a requirement to maintain 300% “asset","page_number":48,"box":{"x":69,"y":536,"width":763,"height":11}},{"id":"ebe533dd-b634-43be-ad98-23c1899119ec","block_type":"box","text":"coverage”).","page_number":48,"box":{"x":69,"y":551,"width":79,"height":11}},{"id":"b4210537-d357-4f36-8335-bea94583185a","block_type":"box","text":"Under Rule 18f-4, “Derivatives Transactions” include the following: (1) any swap, security-based swap (including","page_number":48,"box":{"x":102,"y":574,"width":796,"height":11}},{"id":"9dd1bb32-1cd8-4c18-8faa-d5458bdc88d7","block_type":"box","text":"a contract for differences), futures contract, forward contract, option (excluding purchased options), any combination","page_number":48,"box":{"x":69,"y":589,"width":832,"height":11}},{"id":"319766cc-37bc-42f9-a625-33243a57f218","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":48,"box":{"x":69,"y":604,"width":840,"height":11}},{"id":"ad8eb22d-fe9c-45c8-b129-35dd2e73c1c0","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":48,"box":{"x":69,"y":619,"width":801,"height":11}},{"id":"de86e0b2-f854-44c5-b9a1-3ff1f291019f","block_type":"box","text":"settlement payment or otherwise; (2) any shor t sale borrowing; (3) reverse repurchase agreements and similar","page_number":48,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"0cc542ef-4b49-4922-9cea-c3f4885d42db","block_type":"box","text":"financing transactions (","page_number":48,"box":{"x":68,"y":649,"width":166,"height":12}},{"id":"aad557f3-5afa-48b1-97cf-181fa85f8c54","block_type":"box","text":"e.g.","page_number":48,"box":{"x":236,"y":651,"width":25,"height":10}},{"id":"3227b3b0-a680-4bc7-88a4-36e51c716a95","block_type":"box","text":", recourse and non-recourse tender option bonds, and borrowed bonds), if a Fund elects to","page_number":48,"box":{"x":263,"y":649,"width":646,"height":11}},{"id":"9f9013b1-d90b-41d8-bc96-9f7da2e5b7e2","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":48,"box":{"x":68,"y":664,"width":825,"height":12}},{"id":"3df2eb08-7012-410d-a357-770e63c25352","block_type":"box","text":"securities (","page_number":48,"box":{"x":69,"y":680,"width":78,"height":11}},{"id":"860adee6-f2e4-4c62-962a-d95cd4660852","block_type":"box","text":"e.g.","page_number":48,"box":{"x":148,"y":681,"width":25,"height":10}},{"id":"28990dab-3478-4a23-98d6-3ab8735a544d","block_type":"box","text":", firm and standby commitments, including to-be-announced (“TBA”) commitments, and dollar rolls)","page_number":48,"box":{"x":176,"y":680,"width":704,"height":11}},{"id":"455f4905-dbd8-4288-9cc1-30ec914d1164","block_type":"box","text":"and non-standard settlement cycle securities, unless such transactions meet the Delayed-Settlement Securities","page_number":48,"box":{"x":69,"y":695,"width":796,"height":11}},{"id":"de3bc68c-d376-4c2e-a027-48c11ad96997","block_type":"box","text":"Provision (as defined below under “—When-Issued Securities, Delayed Delivery Securities and Forward","page_number":48,"box":{"x":69,"y":710,"width":732,"height":11}},{"id":"fe60d158-9482-4684-ab9b-1527beab882f","block_type":"box","text":"Commitments”).","page_number":48,"box":{"x":69,"y":725,"width":115,"height":11}},{"id":"dc2afe19-db85-44b6-adf6-33cbfacafb79","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":48,"box":{"x":102,"y":748,"width":805,"height":11}},{"id":"aba43026-8c45-4903-b556-e15d449e83fd","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":48,"box":{"x":70,"y":763,"width":832,"height":11}},{"id":"8c4183f9-7c87-444f-9378-bbaa24a84d97","block_type":"box","text":"implement a comprehensive written derivatives risk management program (“DRMP”) and comply with a relative or","page_number":48,"box":{"x":70,"y":778,"width":808,"height":11}},{"id":"3018ff8a-c9d5-4184-86d6-3e3a4f3b949b","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":48,"box":{"x":69,"y":793,"width":780,"height":11}},{"id":"13968f8a-2757-44a0-bf23-87f055610ec6","block_type":"box","text":"“derivatives risk manager,” who is appointed by the Fund’s Board, including a majority of the independent Directors,","page_number":48,"box":{"x":70,"y":808,"width":824,"height":11}},{"id":"4e98a585-f739-4530-9e4a-39b63efb179f","block_type":"box","text":"and periodically reviews the DRMP and repor ts to the Fund’s Board.","page_number":48,"box":{"x":69,"y":823,"width":482,"height":11}},{"id":"6b112765-5680-4255-b481-8fce332ab241","block_type":"box","text":"Rule 18f-4 provides an exception from the DRMP, VaR limit and cer tain other requirements if a Fund’s","page_number":48,"box":{"x":102,"y":846,"width":724,"height":11}},{"id":"9dcb847b-b65f-47f2-85a7-06a8d315c7ad","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":48,"box":{"x":70,"y":861,"width":830,"height":11}},{"id":"89b3f92b-748f-4415-90a0-cbd6117938cc","block_type":"box","text":"adopts and implements written policies and procedures reasonably designed to manage its derivatives risks (the","page_number":48,"box":{"x":69,"y":876,"width":803,"height":11}},{"id":"db4bca68-df57-4cca-a5d2-e3322cabcc21","block_type":"box","text":"“Limited Derivatives User Exception”).","page_number":48,"box":{"x":70,"y":891,"width":268,"height":11}},{"id":"f46a59b5-7480-4072-b755-4b783ac65288","block_type":"box","text":"II-13","page_number":48,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7e6b15ba-6888-4095-8095-7559d03b0c33","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":48,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c74b230b-812d-412c-97d9-f579702e943f","block_type":"box","text":"Dodd-Frank Regulations.","page_number":49,"box":{"x":102,"y":45,"width":171,"height":11}},{"id":"dc7284bf-5b6b-40ef-93c1-e40afc0e9ece","block_type":"box","text":"The Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”),","page_number":49,"box":{"x":279,"y":45,"width":575,"height":11}},{"id":"b9b7e13b-3b33-45ec-bf06-300b1a71c066","block_type":"box","text":"enacted in July 2010, includes provisions that comprehensively regulate the over-the-counter (“OTC”) derivatives","page_number":49,"box":{"x":69,"y":60,"width":800,"height":11}},{"id":"db49ce54-c634-49b4-b633-31f9b072309b","block_type":"box","text":"markets for the first time. While the Commodity Futures Trading Commission (“CFTC”) and other U.S. regulators have","page_number":49,"box":{"x":69,"y":75,"width":834,"height":11}},{"id":"d07fb5bd-c69b-4660-ac8b-d0ed44408361","block_type":"box","text":"adopted many of the required Dodd-Frank regulations, cer tain regulations have only recently become effective and","page_number":49,"box":{"x":69,"y":90,"width":813,"height":11}},{"id":"520e0b36-cc42-450e-ba4c-c5611f68e4e7","block_type":"box","text":"other regulations remain to be adopted. The full impact of Dodd-Frank on the Funds remains uncer tain.","page_number":49,"box":{"x":69,"y":105,"width":733,"height":11}},{"id":"ce618205-6c81-4eb4-ad18-db3250a11df4","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":49,"box":{"x":102,"y":128,"width":789,"height":11}},{"id":"d0dcb94d-c67d-499b-a921-e7024bf39098","block_type":"box","text":"“security-based swap dealers”. Registered swap dealers and security-based swap dealers are subject to various","page_number":49,"box":{"x":70,"y":143,"width":797,"height":11}},{"id":"8c1430a3-b32a-45c2-b684-7c83d35cf0fb","block_type":"box","text":"regulatory requirements, including, but not limited to, margin, recordkeeping, repor ting, transparency, position limits,","page_number":49,"box":{"x":69,"y":158,"width":833,"height":11}},{"id":"9c4c2a65-fc58-41d3-b176-1eaf3a78d6f0","block_type":"box","text":"limitations on conflicts of interest, business conduct standards, minimum capital requirements and other regulatory","page_number":49,"box":{"x":70,"y":173,"width":826,"height":11}},{"id":"af22c006-3702-4b0b-9cb1-efd52a51a49b","block_type":"box","text":"requirements, which indirectly impact the Funds that enter into transactions with them.","page_number":49,"box":{"x":69,"y":188,"width":618,"height":11}},{"id":"8f8b7b32-c2c8-41f8-8be5-18fbc24aa716","block_type":"box","text":"The CFTC requires that cer tain interest rate swaps and cer tain credit default swaps must be executed in","page_number":49,"box":{"x":101,"y":211,"width":745,"height":11}},{"id":"5f405111-a7f8-4cd6-a0f0-c4d1bc75b71e","block_type":"box","text":"regulated markets and be submitted for clearing to regulated clearinghouses. The SEC is also expected to impose","page_number":49,"box":{"x":69,"y":226,"width":813,"height":11}},{"id":"ab76e64e-65a0-47f5-bc17-95947a343a69","block_type":"box","text":"similar requirements on cer tain security-based derivatives in the future. OTC derivatives trades submitted for clearing","page_number":49,"box":{"x":69,"y":241,"width":835,"height":11}},{"id":"f6ea834e-48ab-43d9-be0b-c78a477c3f33","block_type":"box","text":"are subject to minimum initial and variation margin requirements set by the relevant clearinghouse, as well as margin","page_number":49,"box":{"x":69,"y":257,"width":837,"height":11}},{"id":"92f4994e-39ab-4bd2-be60-e380801c4d68","block_type":"box","text":"requirements mandated by the CFTC, SEC and/or federal prudential regulators. In addition, futures commission","page_number":49,"box":{"x":69,"y":271,"width":794,"height":12}},{"id":"27293a1b-dc51-4d2d-bb2b-504aa231c16b","block_type":"box","text":"merchants (“FCMs”), who act as clearing members on behalf of customers for cleared OTC derivatives and futures","page_number":49,"box":{"x":69,"y":286,"width":815,"height":12}},{"id":"d0dba305-dce1-48b3-a799-eb3a514e8db5","block_type":"box","text":"contracts, also have discretion to increase a Fund’s margin requirements for these transactions beyond any","page_number":49,"box":{"x":69,"y":302,"width":770,"height":11}},{"id":"8636feb6-9eba-4be4-b2c8-c339e48a3af6","block_type":"box","text":"regulatory and clearinghouse minimums subject to any restrictions on such discretion in the documentation between","page_number":49,"box":{"x":69,"y":317,"width":831,"height":11}},{"id":"e64dc19e-1f3c-46a4-9b0e-aa0ece6c1991","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":49,"box":{"x":68,"y":332,"width":804,"height":11}},{"id":"eff13b4e-d156-43f3-b4f1-c47aa2e9819f","block_type":"box","text":"enter into highly tailored or customized transactions, potentially rendering cer tain investment strategies impossible or","page_number":49,"box":{"x":69,"y":347,"width":839,"height":11}},{"id":"113cd9fe-7a3f-4290-be50-da8928a6642a","block_type":"box","text":"not economically feasible. If a Fund decides to execute and clear cleared OTC derivatives and/or futures contracts","page_number":49,"box":{"x":69,"y":362,"width":814,"height":11}},{"id":"dc976b0b-3d41-4880-b944-4331f79f7023","block_type":"box","text":"through execution facilities, exchanges or clearinghouses, either indirectly through an executing broker, clearing","page_number":49,"box":{"x":68,"y":377,"width":796,"height":12}},{"id":"c1ab99ea-9d77-4599-9b68-bc89ab27f609","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":49,"box":{"x":69,"y":392,"width":793,"height":12}},{"id":"61a81f57-07f9-45eb-91a9-1efd4904785f","block_type":"box","text":"exchange or clearinghouse and other applicable law.","page_number":49,"box":{"x":69,"y":408,"width":370,"height":11}},{"id":"db3f4b76-9bc1-490b-93cf-30384585a154","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":49,"box":{"x":101,"y":430,"width":766,"height":11}},{"id":"210849eb-f61e-4b3e-ba34-f9fdb4251376","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":49,"box":{"x":69,"y":445,"width":826,"height":12}},{"id":"44d80c1d-08eb-404a-a16d-bddb1e7f6495","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":49,"box":{"x":69,"y":460,"width":825,"height":12}},{"id":"d9e73057-c70c-4b86-9fc9-08a70a9a7396","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":49,"box":{"x":70,"y":475,"width":791,"height":12}},{"id":"ee213431-b0c7-4420-88d3-9d3099121558","block_type":"box","text":"obligations to the clearinghouse simultaneously with a customer’s failure to meet its obligations to the clearing","page_number":49,"box":{"x":69,"y":491,"width":793,"height":11}},{"id":"aa68b986-c051-4b51-a7ec-9494ef4b5622","block_type":"box","text":"member.","page_number":49,"box":{"x":69,"y":506,"width":60,"height":9}},{"id":"3b9471f1-d876-4c9c-863f-60978e6106be","block_type":"box","text":"Clearing member FCMs are required to post initial margin to the clearinghouses through which they clear their","page_number":49,"box":{"x":102,"y":529,"width":782,"height":11}},{"id":"bab59198-e5ed-4245-abab-49c078d766f0","block_type":"box","text":"customers’ cleared OTC derivatives and futures contracts, instead of using such initial margin in their businesses, as","page_number":49,"box":{"x":69,"y":543,"width":837,"height":12}},{"id":"453c6977-9bda-469c-b778-63d14a9a6830","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":49,"box":{"x":68,"y":559,"width":811,"height":11}},{"id":"dc9ac123-1a8a-4ebd-813d-6d2cd023df71","block_type":"box","text":"margin in excess of clearinghouse requirements, and cer tain clearinghouses may share a por tion of their earnings on","page_number":49,"box":{"x":69,"y":574,"width":838,"height":11}},{"id":"16f3d1bd-7e14-402c-a86d-69e15f92df24","block_type":"box","text":"initial margin with their clearing members, some por tion of the initial margin that is passed through to the","page_number":49,"box":{"x":70,"y":589,"width":754,"height":11}},{"id":"3118041e-8162-44ca-a977-e5f264d1aa04","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":49,"box":{"x":69,"y":604,"width":815,"height":11}},{"id":"81cabea3-655f-404a-aacf-c9a224477f7d","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":49,"box":{"x":70,"y":619,"width":817,"height":11}},{"id":"339c93be-8e81-4096-b432-5370a8cc6edb","block_type":"box","text":"FCMs to charge higher fees, or provide less favorable pricing on cleared OTC derivatives than swap dealers will","page_number":49,"box":{"x":70,"y":634,"width":788,"height":12}},{"id":"d561dd57-0ad0-45a5-8779-d7f08e45d2d2","block_type":"box","text":"provide for non-cleared OTC derivatives. Fur thermore, customers, including the Funds, are subject to additional fees","page_number":49,"box":{"x":70,"y":649,"width":825,"height":12}},{"id":"ac24f36a-a20a-4c30-97fb-93a55e13f05e","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":49,"box":{"x":70,"y":664,"width":829,"height":12}},{"id":"0edc7327-54c1-48fe-b0bc-92970bcd64a1","block_type":"box","text":"to trading non-cleared OTC derivatives bilaterally.","page_number":49,"box":{"x":68,"y":680,"width":346,"height":11}},{"id":"c760ad23-2ebe-4b56-826b-70f6c16196d4","block_type":"box","text":"With respect to uncleared swaps, registered swap dealers and security-based swap dealers are required to","page_number":49,"box":{"x":101,"y":703,"width":762,"height":11}},{"id":"e2722dfd-20a6-4402-8f2c-5344d57bf57a","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":49,"box":{"x":69,"y":718,"width":820,"height":11}},{"id":"467a54e7-fec8-413e-932a-ceca08a88730","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":49,"box":{"x":69,"y":732,"width":816,"height":12}},{"id":"0a538220-3310-4042-9e27-4338981e707b","block_type":"box","text":"subject to applicable regulatory haircuts and other restrictions. Shares of investment companies (other than cer tain","page_number":49,"box":{"x":69,"y":748,"width":825,"height":11}},{"id":"88956592-5636-4652-9b06-033a45be2fc4","block_type":"box","text":"money market funds) may not be posted as collateral under applicable regulations.","page_number":49,"box":{"x":69,"y":763,"width":590,"height":11}},{"id":"1954326b-cfea-4065-97a2-b402b6d7eb2e","block_type":"box","text":"The CFTC, cer tain foreign regulators, and many futures exchanges have established (and continue to evaluate","page_number":49,"box":{"x":101,"y":785,"width":783,"height":12}},{"id":"d07217d8-0a26-494c-9bae-da3414abaf70","block_type":"box","text":"and monitor) speculative position limits (“position limits”) on the maximum speculative position which any person, or","page_number":49,"box":{"x":69,"y":801,"width":833,"height":11}},{"id":"c46f7549-0598-4487-af62-bd740b5d13e9","block_type":"box","text":"group of persons acting in concer t, may hold or control in par ticular contracts. In addition, U.S. federal position limits","page_number":49,"box":{"x":68,"y":816,"width":837,"height":11}},{"id":"f85c8ee9-1303-4835-98af-a8f2474b0916","block_type":"box","text":"apply to swaps that are economically equivalent to futures contracts on cer tain agricultural, metals and energy","page_number":49,"box":{"x":69,"y":831,"width":789,"height":11}},{"id":"2c1a1724-dea6-400e-bd7e-9eac5461e35a","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":49,"box":{"x":69,"y":846,"width":818,"height":11}},{"id":"4eb68a53-157c-4d22-a2ba-1ea36c5c450a","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":49,"box":{"x":69,"y":861,"width":801,"height":11}},{"id":"78638b37-c7da-41bf-a47a-26df9c3933d4","block_type":"box","text":"applicable position limits, it is possible that different clients managed by the Manager and its affiliates may be","page_number":49,"box":{"x":69,"y":876,"width":791,"height":11}},{"id":"a9fc07cc-120d-4364-93aa-0001245fcf2f","block_type":"box","text":"aggregated for this purpose. Therefore, the trading decisions of the Manager may have to be modified and positions","page_number":49,"box":{"x":69,"y":891,"width":827,"height":12}},{"id":"0c3a02b5-993d-4ac8-ad15-29fcfd140561","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":49,"box":{"x":69,"y":906,"width":805,"height":12}},{"id":"fb7fe3cb-6a6d-4ac2-8b9a-d74ae57c922a","block_type":"box","text":"II-14","page_number":49,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"4c45e06a-1a72-483f-ae0a-3076b0e2354f","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":49,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4ed44b3e-b0b3-46ce-bbe3-5593ec4ad9d1","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":50,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"a5571915-858b-4783-a42b-b069731fb38e","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":50,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"0b8bec01-bb5f-4cf8-a48a-9264aff41adf","block_type":"box","text":"by other regimes, including those of the European Union and United Kingdom, and trading venues that impose","page_number":50,"box":{"x":69,"y":75,"width":785,"height":11}},{"id":"9f3f13cd-cd79-48a2-b721-71432a15fb10","block_type":"box","text":"position limits on commodity derivative contracts.","page_number":50,"box":{"x":70,"y":90,"width":350,"height":11}},{"id":"fe7aa78d-3130-4154-b9a5-6a8f5526f727","block_type":"box","text":"Additional Regulation of Derivatives.","page_number":50,"box":{"x":101,"y":113,"width":256,"height":11}},{"id":"25bed31a-1cd5-430a-a0c5-28cdcc188cc7","block_type":"box","text":"Regulatory bodies outside the U.S. have also passed, proposed, or may","page_number":50,"box":{"x":364,"y":113,"width":513,"height":11}},{"id":"7515ce62-742a-4c8f-b2a7-fad22aeab810","block_type":"box","text":"propose in the future, legislation similar to Dodd-Frank or other legislation that could increase the costs of","page_number":50,"box":{"x":70,"y":128,"width":757,"height":11}},{"id":"b931432f-de24-4b67-9998-d922391b3a77","block_type":"box","text":"par ticipating in, or otherwise adversely impact the liquidity of, par ticipating in the commodities markets. For example,","page_number":50,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"5e890777-7616-4aa3-8052-80f46655ccd0","block_type":"box","text":"the European Market Infrastructure Regulation (Regulation (EU) No 648/2012) (“EMIR”) introduced cer tain","page_number":50,"box":{"x":68,"y":158,"width":762,"height":11}},{"id":"1d5a5916-6e84-4ac1-b4bd-9bf9bdb5abe0","block_type":"box","text":"requirements in respect of OTC derivatives including: (i) the mandatory clearing of OTC derivative contracts declared","page_number":50,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"50de21c0-8961-4765-a2a9-61b31022a996","block_type":"box","text":"subject to the clearing obligation; (ii) risk mitigation techniques in respect of uncleared OTC derivative contracts,","page_number":50,"box":{"x":69,"y":188,"width":798,"height":12}},{"id":"86c53c80-5067-446d-b2a5-3c6c9e0836ef","block_type":"box","text":"including the mandatory margining of uncleared OTC derivative contracts; and (iii) repor ting and recordkeeping","page_number":50,"box":{"x":70,"y":203,"width":785,"height":12}},{"id":"54eb9149-e2e7-4a29-8edb-dda674278cc4","block_type":"box","text":"requirements in respect of all derivatives contracts. By way of fur ther example, the European Union Markets in","page_number":50,"box":{"x":69,"y":218,"width":787,"height":12}},{"id":"deb0f24c-32c9-4478-b565-5582c785e4bd","block_type":"box","text":"Financial Instruments Directive (Directive 2014/65/EU) and Markets in Financial Instruments Regulation (Regulation","page_number":50,"box":{"x":70,"y":234,"width":830,"height":11}},{"id":"7bcf3084-1bf6-4d31-82f4-9889e9c31364","block_type":"box","text":"(EU) No 600/2014) (together “MiFID II”), which have applied since January 3, 2018, govern the provision of","page_number":50,"box":{"x":69,"y":249,"width":771,"height":11}},{"id":"ae2d201a-445a-4b09-a513-37b47d7b8454","block_type":"box","text":"investment services and activities in relation to, as well as the organized trading of, financial instruments such as","page_number":50,"box":{"x":70,"y":264,"width":812,"height":11}},{"id":"0a471648-8f50-49bb-8fd9-d14189234324","block_type":"box","text":"shares, bonds, units in collective investment schemes and derivatives. In par ticular, MiFID II requires European Union","page_number":50,"box":{"x":69,"y":279,"width":839,"height":11}},{"id":"9e7e8108-13e5-40ac-8a8b-edd1f10efb5f","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":50,"box":{"x":70,"y":294,"width":793,"height":11}},{"id":"51a51dc4-75cd-46f0-95ee-cd3ae74bbffd","block_type":"box","text":"derivatives traded on European Union trading venues and in “economically equivalent” OTC contracts. If the","page_number":50,"box":{"x":69,"y":309,"width":765,"height":11}},{"id":"7f9bfac6-5ddd-41b7-9b12-aa1de4948642","block_type":"box","text":"requirements of EMIR and MiFID II apply, the cost of derivatives transactions is expected to increase.","page_number":50,"box":{"x":69,"y":324,"width":720,"height":11}},{"id":"cc6e438f-dfaf-466b-9368-0be01d413c08","block_type":"box","text":"In addition, regulations adopted by global prudential regulators that are now in effect require cer tain prudentially","page_number":50,"box":{"x":102,"y":347,"width":802,"height":11}},{"id":"bc369100-f7a0-4ce1-87c2-911bfd45e829","block_type":"box","text":"regulated entities and cer tain of their affiliates and subsidiaries (including swap dealers) to include in their","page_number":50,"box":{"x":69,"y":362,"width":762,"height":11}},{"id":"6f22e5ed-a4d5-4174-82e1-622566f21e6b","block_type":"box","text":"derivatives contracts and cer tain other financial contracts, terms that delay or restrict the rights of counterpar ties","page_number":50,"box":{"x":69,"y":377,"width":810,"height":12}},{"id":"99fec331-c466-408f-a5f0-d995ab06d751","block_type":"box","text":"(such as the Funds) to terminate such contracts, foreclose upon collateral, exercise other default rights or restrict","page_number":50,"box":{"x":69,"y":392,"width":812,"height":12}},{"id":"da6b1c87-040e-4f91-aab4-c4ec2df03e64","block_type":"box","text":"transfers of credit suppor t in the event that the prudentially regulated entity and/or its affiliates are subject to","page_number":50,"box":{"x":68,"y":407,"width":787,"height":12}},{"id":"e0ac9415-0be0-424f-ab2b-9b6208bddab1","block_type":"box","text":"cer tain types of resolution or insolvency proceedings. Similar regulations and laws have been adopted in non-U.S.","page_number":50,"box":{"x":69,"y":423,"width":810,"height":11}},{"id":"82049b9e-db63-42e6-8262-94cee72b021b","block_type":"box","text":"jurisdictions that may apply to a Fund’s counterpar ties located in those jurisdictions. In par ticular, in the United","page_number":50,"box":{"x":67,"y":438,"width":795,"height":11}},{"id":"35e95402-62fa-40ed-9f5e-2804b87a8079","block_type":"box","text":"Kingdom and the European Union, governmental authorities could reduce, eliminate or conver t to equity the liabilities","page_number":50,"box":{"x":70,"y":453,"width":835,"height":11}},{"id":"c37b109b-e846-4a75-92b8-da2a09811462","block_type":"box","text":"to a Fund of a counterpar ty experiencing financial difficulties (sometimes referred to as a “bail in”). It is possible that","page_number":50,"box":{"x":68,"y":468,"width":839,"height":11}},{"id":"f3d1416d-9a08-4558-b615-78a72cb11ff1","block_type":"box","text":"these requirements, as well as potential additional related government regulation, could adversely affect a Fund’s","page_number":50,"box":{"x":68,"y":483,"width":814,"height":11}},{"id":"249a77fe-ac11-40d7-a9a8-07def27d4191","block_type":"box","text":"ability to terminate existing derivatives contracts, exercise default rights or satisfy obligations owed to it with","page_number":50,"box":{"x":69,"y":498,"width":773,"height":11}},{"id":"24f60110-84b7-4ba2-a409-69fdcab8141b","block_type":"box","text":"collateral received under such contracts.","page_number":50,"box":{"x":69,"y":514,"width":288,"height":8}},{"id":"0ff4cfb8-471a-4c13-885e-f23f3753c831","block_type":"box","text":"Risk Factors in Derivatives.","page_number":50,"box":{"x":102,"y":536,"width":191,"height":9}},{"id":"6ffce2d2-2ede-44f9-8332-98aef70322fb","block_type":"box","text":"There are significant risks that apply generally to derivatives transactions, including:","page_number":50,"box":{"x":101,"y":559,"width":597,"height":11}},{"id":"2977159c-45ee-4901-bf2c-e10c8afc1927","block_type":"box","text":"Correlation Risk","page_number":50,"box":{"x":102,"y":581,"width":114,"height":9}},{"id":"e4e7d120-8199-4a32-9205-ede100f0b364","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":50,"box":{"x":220,"y":581,"width":668,"height":12}},{"id":"951dd0f0-c458-4878-99a0-e8df37e69afc","block_type":"box","text":"the por tfolio holdings that are being hedged or of the par ticular market or security to which the Fund seeks exposure.","page_number":50,"box":{"x":68,"y":596,"width":837,"height":12}},{"id":"448f3628-b869-4faf-8372-106da1002f6c","block_type":"box","text":"There are a number of factors which may prevent a derivative instrument from achieving the desired correlation (or","page_number":50,"box":{"x":68,"y":612,"width":818,"height":11}},{"id":"3347912d-d093-4d9b-acba-b45e04a5b6f9","block_type":"box","text":"inverse correlation) with an underlying asset, rate or index, such as the impact of fees, expenses and transaction","page_number":50,"box":{"x":70,"y":627,"width":806,"height":11}},{"id":"eeaeee94-3eb9-492d-977f-fbeced8a990e","block_type":"box","text":"costs, the timing of pricing, and disruptions or illiquidity in the markets for such derivative instrument.","page_number":50,"box":{"x":69,"y":642,"width":725,"height":11}},{"id":"e11011a3-48f4-4b2d-b747-aaceceb95262","block_type":"box","text":"Counterpar ty Risk","page_number":50,"box":{"x":102,"y":665,"width":128,"height":11}},{"id":"bb489d9a-2b56-42f2-9a54-ac806974e063","block_type":"box","text":"— the risk that a derivatives transaction counterpar ty will be unable or unwilling to make","page_number":50,"box":{"x":233,"y":665,"width":632,"height":11}},{"id":"81e53147-4d27-40b7-897e-5c875ce554fd","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":50,"box":{"x":70,"y":680,"width":830,"height":11}},{"id":"23ef0c5e-c79c-4951-9316-9a8ac6b8f74f","block_type":"box","text":"a counterpar ty. In par ticular, derivatives traded in OTC markets often are not guaranteed by an exchange or clearing","page_number":50,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"2b7fa0e2-8007-4d80-8fac-a1895e0a5594","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":50,"box":{"x":69,"y":710,"width":834,"height":11}},{"id":"b11ce7df-b406-4182-9736-9ae62c83d622","block_type":"box","text":"instruments or has deposited collateral with its counterpar ties the Fund is at risk that its counterpar ties will become","page_number":50,"box":{"x":70,"y":725,"width":831,"height":11}},{"id":"d848cd89-3695-49db-ab7e-be8ed93863b6","block_type":"box","text":"bankrupt or otherwise fail to honor their obligations. A Fund will typically attempt to minimize counterpar ty risk by","page_number":50,"box":{"x":69,"y":740,"width":806,"height":11}},{"id":"13177e74-3048-4c78-9622-2485c0df2f3b","block_type":"box","text":"engaging in OTC derivatives transactions only with creditwor thy entities that have substantial capital or that have","page_number":50,"box":{"x":69,"y":755,"width":803,"height":11}},{"id":"dab5548e-2a35-49f6-ae88-cfbe36def8b2","block_type":"box","text":"provided the Fund with a third-par ty guaranty or other credit suppor t. When a Fund enters into a derivatives","page_number":50,"box":{"x":70,"y":771,"width":760,"height":11}},{"id":"5dbd1cc8-c636-4a61-aca2-c0cb4fe81395","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":50,"box":{"x":68,"y":785,"width":819,"height":12}},{"id":"f20371df-e340-4865-959f-c2006f46ebd0","block_type":"box","text":"clearing house and the clearing member through which it holds its cleared position. Credit risk of market par ticipants","page_number":50,"box":{"x":69,"y":801,"width":834,"height":11}},{"id":"2ff80e1d-a045-42e2-858b-7df83814a516","block_type":"box","text":"with respect to derivatives that are centrally cleared is concentrated in a few clearing houses and increasingly fewer","page_number":50,"box":{"x":68,"y":816,"width":826,"height":11}},{"id":"20f7daaf-e124-4e77-aeec-be7b3548c6b1","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":50,"box":{"x":69,"y":831,"width":805,"height":11}},{"id":"b6e33bee-06e6-47e0-a652-a82b1028e794","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":50,"box":{"x":70,"y":846,"width":824,"height":11}},{"id":"291a7e9f-461a-4e38-b0a0-6010040cb7e9","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":50,"box":{"x":70,"y":861,"width":816,"height":11}},{"id":"8ffedf5c-d0df-4a88-8410-d54c8575bc11","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":50,"box":{"x":70,"y":876,"width":771,"height":11}},{"id":"d3477725-c013-49d5-a721-79c5c0e233d3","block_type":"box","text":"derivatives. Although a clearing member is required to segregate assets from customers with respect to cleared","page_number":50,"box":{"x":69,"y":891,"width":797,"height":12}},{"id":"597cc2de-6250-4ce2-9ea5-71752f79f5aa","block_type":"box","text":"derivatives positions from the clearing member’s proprietary assets, if a clearing member does not comply with the","page_number":50,"box":{"x":69,"y":906,"width":822,"height":12}},{"id":"d8426bf4-50b0-439a-899d-9255983b1829","block_type":"box","text":"II-15","page_number":50,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f94d9015-2573-48a5-9d9f-234cca32c1e2","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":50,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"55bf7068-47d5-4982-9326-6774b74c1495","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":51,"box":{"x":69,"y":45,"width":829,"height":11}},{"id":"c2bcedba-ec22-47ce-aba1-017ba4f2212e","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":51,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"9c385fe7-0c66-4017-a2a7-89e7b753612a","block_type":"box","text":"by the clearing member.","page_number":51,"box":{"x":69,"y":75,"width":169,"height":11}},{"id":"6af72d6a-3134-4574-a636-165dbbcd6a6e","block_type":"box","text":"Credit Risk","page_number":51,"box":{"x":102,"y":98,"width":78,"height":9}},{"id":"00bbb966-44e1-473f-8557-c687c38a57ed","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":51,"box":{"x":184,"y":98,"width":698,"height":11}},{"id":"cb69f514-d88d-4a8a-acdf-dec01da711c1","block_type":"box","text":"honor its financial obligations.","page_number":51,"box":{"x":69,"y":113,"width":213,"height":11}},{"id":"5e50963a-939c-4509-a8fa-985e10e97cb7","block_type":"box","text":"Currency Risk","page_number":51,"box":{"x":102,"y":135,"width":98,"height":11}},{"id":"cb636754-96e1-4344-be7b-7f52aa761411","block_type":"box","text":"— the risk that changes in the exchange rate between two currencies will adversely affect the","page_number":51,"box":{"x":204,"y":135,"width":669,"height":12}},{"id":"299e91f1-5dfc-4c9e-a74e-d0aba3b56d19","block_type":"box","text":"value (in U.S. dollar terms) of a derivative.","page_number":51,"box":{"x":68,"y":150,"width":300,"height":11}},{"id":"95af3d54-e031-43ec-a30f-b75c0505f2d6","block_type":"box","text":"Illiquidity Risk","page_number":51,"box":{"x":102,"y":173,"width":98,"height":11}},{"id":"902709d0-7e9c-4cce-a28b-75f0aab0e52f","block_type":"box","text":"— the risk that cer tain securities or instruments may be difficult or impossible to sell at the time","page_number":51,"box":{"x":204,"y":173,"width":693,"height":11}},{"id":"41a64022-2c7e-43c4-9db8-02e4b6ec394f","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":51,"box":{"x":69,"y":188,"width":814,"height":12}},{"id":"429f94e1-5371-461e-8f01-0b993c7ccf93","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":51,"box":{"x":69,"y":203,"width":799,"height":12}},{"id":"73ddb9d6-e05c-425c-94a1-8520adcb9d19","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":51,"box":{"x":69,"y":218,"width":799,"height":12}},{"id":"c2257add-66fa-45d1-8c6b-15012c5e5a60","block_type":"box","text":"incurring substantial losses (if at all). Cer tain OTC derivatives, including swaps and OTC options, involve substantial","page_number":51,"box":{"x":70,"y":234,"width":824,"height":11}},{"id":"6ee4ea74-894b-4553-aaca-ba6725754807","block_type":"box","text":"illiquidity risk. Illiquidity may also make it more difficult for a Fund to ascer tain a market value for such derivatives. A","page_number":51,"box":{"x":70,"y":249,"width":830,"height":11}},{"id":"90380e14-dfd7-4ab0-a837-b1835873b317","block_type":"box","text":"Fund will, therefore, acquire illiquid OTC derivatives (i) if the agreement pursuant to which the instrument is","page_number":51,"box":{"x":70,"y":264,"width":762,"height":11}},{"id":"4f211927-4c1a-43fb-a0de-319e319b77ce","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":51,"box":{"x":70,"y":279,"width":827,"height":11}},{"id":"1783e8a5-2d2b-4548-8f7a-9f62aac42cf9","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":51,"box":{"x":69,"y":294,"width":816,"height":11}},{"id":"8fbbe3b2-1fe4-4390-92f8-206caaba1209","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":51,"box":{"x":68,"y":309,"width":831,"height":11}},{"id":"dd6df407-c0e6-42ad-b3cb-46bcaf29a96a","block_type":"box","text":"markets may be due to various factors, including congestion, disorderly markets, limitations on deliverable supplies,","page_number":51,"box":{"x":69,"y":324,"width":828,"height":12}},{"id":"987a8501-dcbb-46df-a9a6-f718e11910bd","block_type":"box","text":"the par ticipation of speculators, government regulation and intervention, and technical and operational or system","page_number":51,"box":{"x":68,"y":339,"width":809,"height":12}},{"id":"c05c068a-3e50-4cb7-88f3-b99a29c0fe0c","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":51,"box":{"x":68,"y":355,"width":826,"height":11}},{"id":"6dcb83cd-2d21-459d-8af7-3773fe338e09","block_type":"box","text":"“daily price fluctuation limits” established by the exchanges which limit the amount of fluctuation in an exchange","page_number":51,"box":{"x":70,"y":370,"width":806,"height":11}},{"id":"b588285d-38dd-4667-8f83-c9bda6ebefc4","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":51,"box":{"x":68,"y":385,"width":838,"height":11}},{"id":"21827952-8902-4b58-a583-5e457ec634e5","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":51,"box":{"x":69,"y":400,"width":827,"height":11}},{"id":"8fca5f2b-f5aa-4014-bf05-c8e6fa3d2475","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":51,"box":{"x":69,"y":415,"width":828,"height":11}},{"id":"e9f081aa-8a47-48d7-baf3-985074296bd3","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":51,"box":{"x":69,"y":430,"width":796,"height":11}},{"id":"4abe496a-9a33-42e2-ae6e-55e0ba363989","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":51,"box":{"x":70,"y":445,"width":759,"height":12}},{"id":"ef9ffa3e-b515-42fe-a6bb-bad8361dffae","block_type":"box","text":"insufficient cash, it may have to sell por tfolio securities to meet daily variation margin requirements at a time when it","page_number":51,"box":{"x":70,"y":460,"width":837,"height":12}},{"id":"a44a88af-99f6-4c24-a46a-03e8b33e2042","block_type":"box","text":"may be disadvantageous to do so.","page_number":51,"box":{"x":69,"y":476,"width":243,"height":11}},{"id":"5688eb8c-a2c2-4c5d-9ae1-d621b85abd72","block_type":"box","text":"Index Risk","page_number":51,"box":{"x":102,"y":498,"width":73,"height":9}},{"id":"b5938593-c54c-4bab-8a26-69fc589b2a83","block_type":"box","text":"— if the derivative is linked to the per formance of an index, it will be subject to the risks associated","page_number":51,"box":{"x":179,"y":498,"width":714,"height":11}},{"id":"cedc4ccf-64fb-4e2e-96c4-0a8b958eb9e9","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":51,"box":{"x":68,"y":513,"width":800,"height":12}},{"id":"a16d0d1d-fc7a-4d86-8e70-ba37c82eed1b","block_type":"box","text":"reduction in the value of the derivative to below the price that the Fund paid for such derivative.","page_number":51,"box":{"x":69,"y":528,"width":678,"height":11}},{"id":"893811ae-b973-4c1d-9e07-c06b3f747fdf","block_type":"box","text":"Legal Risk","page_number":51,"box":{"x":102,"y":551,"width":73,"height":11}},{"id":"f27be77e-2cd3-49e2-b564-5c6298abbbec","block_type":"box","text":"— the risk of insufficient documentation, insufficient capacity or authority of counterpar ty, or legality","page_number":51,"box":{"x":179,"y":551,"width":717,"height":11}},{"id":"0b5da151-6664-47d1-ba57-6ebbda55b897","block_type":"box","text":"or enforceability of a contract.","page_number":51,"box":{"x":69,"y":566,"width":211,"height":11}},{"id":"1f1e7e69-2498-4201-8fe5-26aaac56081a","block_type":"box","text":"Leverage Risk","page_number":51,"box":{"x":102,"y":589,"width":99,"height":11}},{"id":"d9ca1115-dd73-4b80-9d0d-4e39db4c0bb5","block_type":"box","text":"— the risk that a Fund’s derivatives transactions can magnify the Fund’s gains and losses.","page_number":51,"box":{"x":205,"y":589,"width":648,"height":11}},{"id":"46fd44eb-8c71-4409-a9c3-253e54a579a3","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":51,"box":{"x":70,"y":604,"width":823,"height":11}},{"id":"407d0fdc-5ccd-4a20-906e-d16cd36fe300","block_type":"box","text":"in losses that greatly exceed the amount originally invested.","page_number":51,"box":{"x":70,"y":619,"width":425,"height":11}},{"id":"298c31ad-8576-49de-b7cc-09f8313c5d52","block_type":"box","text":"Market Risk","page_number":51,"box":{"x":102,"y":642,"width":85,"height":9}},{"id":"71abde53-fb16-4727-b692-37ec235e9565","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":51,"box":{"x":191,"y":642,"width":716,"height":11}},{"id":"3a961ac4-6d7e-4245-aca1-73c0f621b0d2","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":51,"box":{"x":68,"y":657,"width":833,"height":11}},{"id":"6c77aacc-e97c-4263-a56a-1c167013df5d","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":51,"box":{"x":69,"y":672,"width":794,"height":11}},{"id":"b5caa233-a17e-4bf4-8386-1d803cac7183","block_type":"box","text":"affected.","page_number":51,"box":{"x":69,"y":687,"width":62,"height":9}},{"id":"e000b8ad-7d1c-4f3a-9337-03ffabaeb1bb","block_type":"box","text":"Operational Risk","page_number":51,"box":{"x":102,"y":710,"width":117,"height":11}},{"id":"ebcf554e-dcf0-4172-b0c7-63a785d64f39","block_type":"box","text":"— the risk related to potential operational issues, including documentation issues, settlement","page_number":51,"box":{"x":223,"y":710,"width":674,"height":11}},{"id":"35e976b4-6079-4545-8260-110f27e73dc6","block_type":"box","text":"issues, systems failures, inadequate controls and human error.","page_number":51,"box":{"x":70,"y":725,"width":451,"height":11}},{"id":"9fa07605-7a05-48b2-9619-9af17d6119e7","block_type":"box","text":"Valuation Risk","page_number":51,"box":{"x":103,"y":748,"width":99,"height":9}},{"id":"0e3ee827-48f1-47a0-88c8-56f608e63cbd","block_type":"box","text":"— the risk that valuation sources for a derivative will not be readily available in the market. This is","page_number":51,"box":{"x":206,"y":748,"width":701,"height":11}},{"id":"8457dd79-d52c-49c8-866e-149fb1a3cc15","block_type":"box","text":"possible especially in times of market distress, since many market par ticipants may be reluctant to purchase","page_number":51,"box":{"x":70,"y":763,"width":779,"height":11}},{"id":"41987cf3-143a-42c7-aafe-9cc1ecf4ce4d","block_type":"box","text":"complex instruments or quote prices for them.","page_number":51,"box":{"x":69,"y":778,"width":329,"height":11}},{"id":"1685244e-3549-41cd-a28c-8a93cf771fa8","block_type":"box","text":"Volatility Risk","page_number":51,"box":{"x":103,"y":801,"width":93,"height":11}},{"id":"2e01ea46-2570-42c6-bf7d-0b64ae539f25","block_type":"box","text":"— the risk that the value of derivatives will fluctuate significantly within a shor t time period.","page_number":51,"box":{"x":200,"y":801,"width":652,"height":11}},{"id":"8db226d8-c673-4f41-a30b-3123fc7a4bd4","block_type":"box","text":"Types of Derivatives Transactions.","page_number":51,"box":{"x":103,"y":823,"width":240,"height":11}},{"id":"30291503-6ce3-4e79-a172-7d671cff7966","block_type":"box","text":"A Fund may enter into derivatives transactions in accordance with its investment guidelines and restrictions,","page_number":51,"box":{"x":101,"y":846,"width":771,"height":11}},{"id":"7d1bfcaa-b535-409d-9659-3b117aaa84ec","block_type":"box","text":"including the following:","page_number":51,"box":{"x":70,"y":861,"width":159,"height":11}},{"id":"144d8b50-ccf6-4920-a512-38e4dceecb1d","block_type":"box","text":"Futures.","page_number":51,"box":{"x":102,"y":884,"width":56,"height":9}},{"id":"fdf84f8c-4e23-4f97-85d8-68d761ea3117","block_type":"box","text":"II-16","page_number":51,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d2aa8098-49ae-40b3-a4b0-09613d6e6cc9","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":51,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e0e4f1e6-791f-45de-a717-732cf5953745","block_type":"box","text":"A Fund may enter into futures contracts (“futures”) and options on futures contracts. Futures are standardized,","page_number":52,"box":{"x":101,"y":45,"width":791,"height":11}},{"id":"3004f1ee-1f63-4634-b841-4e46ce2dfeb6","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":52,"box":{"x":69,"y":60,"width":799,"height":11}},{"id":"7cc19f4f-b637-48a0-9619-9f26cf433589","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":52,"box":{"x":69,"y":75,"width":800,"height":11}},{"id":"74b57c76-36ed-4ff2-961b-e5ef6a571f15","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":52,"box":{"x":69,"y":90,"width":838,"height":11}},{"id":"0b754e12-f199-468e-8fa5-fa4492b627c2","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":52,"box":{"x":69,"y":105,"width":820,"height":11}},{"id":"7cd44322-a8c0-4a95-9d9b-b368f911c0a8","block_type":"box","text":"applicable, based on the mark-to-market movement of the contract.","page_number":52,"box":{"x":69,"y":120,"width":478,"height":11}},{"id":"d960cff0-6b54-4929-aabf-ece5649b6b84","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":52,"box":{"x":101,"y":143,"width":801,"height":11}},{"id":"2403e539-ef9a-43ae-b355-4b17007f47b1","block_type":"box","text":"market value of por tfolio holdings correlated with the futures contract. However, in the event the market value of the","page_number":52,"box":{"x":69,"y":158,"width":829,"height":11}},{"id":"38733195-c564-4386-956f-f1a2d20eea28","block_type":"box","text":"por tfolio holdings correlated with the futures contract increases rather than decreases, a Fund will realize a loss on","page_number":52,"box":{"x":70,"y":173,"width":822,"height":11}},{"id":"a4bcdf56-0007-4aee-92d7-97e8777577c3","block_type":"box","text":"the futures position and a lower return on the por tfolio holdings than would have been realized without the purchase","page_number":52,"box":{"x":68,"y":188,"width":830,"height":12}},{"id":"6556bad3-0e19-428f-8f35-65ed30d8394f","block_type":"box","text":"of the futures contract.","page_number":52,"box":{"x":69,"y":203,"width":162,"height":9}},{"id":"05b39c1e-cba8-443c-afa0-c8dcd3a3687d","block_type":"box","text":"The purchase of a futures contract may provide a Fund a lower cost alternative to purchasing securities or","page_number":52,"box":{"x":101,"y":226,"width":756,"height":11}},{"id":"004c09f3-6014-4ec7-95b5-8917d3f82a72","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":52,"box":{"x":69,"y":241,"width":820,"height":11}},{"id":"c7ce7823-2f0e-44cd-aadc-6c842f376132","block_type":"box","text":"complete an anticipatory hedge transaction relating to a futures contract, however, the Fund may realize a loss","page_number":52,"box":{"x":69,"y":256,"width":789,"height":12}},{"id":"d1266e4a-537b-4839-9e14-33b3a30c0070","block_type":"box","text":"relating to the futures position.","page_number":52,"box":{"x":69,"y":271,"width":219,"height":12}},{"id":"cac74d19-aee1-468a-828e-6169928fd837","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":52,"box":{"x":102,"y":294,"width":757,"height":11}},{"id":"ec77158e-fb07-495c-8fdd-184ff8e53dc4","block_type":"box","text":"required to liquidate positions or may not be able to fully implement trading instructions. Any such liquidation or","page_number":52,"box":{"x":69,"y":309,"width":797,"height":11}},{"id":"91581285-35fe-42b0-9c18-5131eac5f525","block_type":"box","text":"limited implementation could result in substantial costs to a Fund. See “—Regulation of Derivatives — Dodd-Frank","page_number":52,"box":{"x":70,"y":324,"width":816,"height":12}},{"id":"d0595c2d-1812-4ce1-8926-a25e776ab6fa","block_type":"box","text":"Regulations” above.","page_number":52,"box":{"x":70,"y":340,"width":140,"height":11}},{"id":"fe32a4f4-db28-4862-bf44-2c8cfbb1f443","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":52,"box":{"x":101,"y":362,"width":799,"height":11}},{"id":"88052aa3-0e5d-41b8-b905-accca4b9ce5b","block_type":"box","text":"and stock indices. Generally, these strategies would be used under the same market and market sector conditions","page_number":52,"box":{"x":69,"y":377,"width":818,"height":12}},{"id":"cbfd5c9c-9797-4068-9b70-fd81bdbf6a51","block_type":"box","text":"(","page_number":52,"box":{"x":69,"y":393,"width":3,"height":10}},{"id":"0f208cc7-c7ef-4c86-9f7a-9c321c531954","block_type":"box","text":"i.e.","page_number":52,"box":{"x":74,"y":393,"width":21,"height":8}},{"id":"a914fa70-87b0-48ca-a7d1-1c98edd993e4","block_type":"box","text":", conditions relating to specific types of investments) in which the Fund entered into futures transactions. A Fund","page_number":52,"box":{"x":97,"y":392,"width":803,"height":12}},{"id":"8f662c7f-fc92-4de0-9efa-1bf01b51e365","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":52,"box":{"x":69,"y":407,"width":830,"height":12}},{"id":"d07a4328-2061-4bae-b0f9-f5febed2e5c5","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":52,"box":{"x":68,"y":423,"width":835,"height":11}},{"id":"94177113-e91e-4855-8797-0be75e9dbbb5","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":52,"box":{"x":69,"y":438,"width":831,"height":11}},{"id":"73a948e2-f6ec-485c-ae23-f2f3c481b832","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":52,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"5a25f34a-a6ff-495c-ae2f-20f3770e6a09","block_type":"box","text":"Fund intends to purchase.","page_number":52,"box":{"x":70,"y":468,"width":183,"height":11}},{"id":"b069aa4f-6ef0-4dca-8650-82f52e21c85a","block_type":"box","text":"To maintain greater flexibility, a Fund may invest in instruments which have characteristics similar to futures","page_number":52,"box":{"x":101,"y":491,"width":768,"height":11}},{"id":"d1b72424-cf1e-4c51-bb96-045211c79b03","block_type":"box","text":"contracts. These instruments may take a variety of forms, such as debt securities with interest or principal payments","page_number":52,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"f9512231-5d11-48db-b268-7b2e91fcf5e9","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":52,"box":{"x":69,"y":521,"width":839,"height":11}},{"id":"43e2e253-835e-4221-a493-a0e08c015a90","block_type":"box","text":"risks of such investments could reflect the risks of investing in futures and securities, including volatility and","page_number":52,"box":{"x":69,"y":536,"width":773,"height":11}},{"id":"022c4e45-2c4d-4144-a1f4-54ee0ea1c919","block_type":"box","text":"illiquidity.","page_number":52,"box":{"x":70,"y":551,"width":63,"height":11}},{"id":"1965b112-7305-46ce-ae91-a985abb06bcc","block_type":"box","text":"Futures contracts and options on futures contracts are subject to significant correlation risk, leverage risk,","page_number":52,"box":{"x":102,"y":574,"width":757,"height":11}},{"id":"e2daed18-2019-4f61-bf80-6176ffd32b2e","block_type":"box","text":"illiquidity risk, market risk and counterpar ty risk with respect to a Fund’s futures broker or the clearinghouse. See","page_number":52,"box":{"x":70,"y":589,"width":807,"height":11}},{"id":"30ece80c-7de9-45a7-8a64-b738dc6d7127","block_type":"box","text":"“—Risk Factors in Derivatives” above.","page_number":52,"box":{"x":70,"y":604,"width":269,"height":9}},{"id":"43e9df5c-eb30-4145-97ea-8985606389eb","block_type":"box","text":"Cer tain Funds may invest in futures based on carbon “allowances.” Under cer tain regulatory regimes, a limit is","page_number":52,"box":{"x":102,"y":627,"width":791,"height":11}},{"id":"9e15dfa9-9acf-4437-9d1b-d3ff24677e43","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":52,"box":{"x":69,"y":642,"width":838,"height":11}},{"id":"5d66fba8-efb0-4af0-ab58-412059f48a93","block_type":"box","text":"can be emitted by regulated entities, such as manufacturers or energy producers. The regulator then may issue or","page_number":52,"box":{"x":69,"y":657,"width":814,"height":11}},{"id":"2163a080-c5c1-4040-8d90-25ee1fcc3dd8","block_type":"box","text":"sell individual “emission allowances” to regulated entities, which can then be traded on the open market. Commodity","page_number":52,"box":{"x":69,"y":672,"width":837,"height":11}},{"id":"ac41a867-c454-4948-99fa-e7fbd74745c4","block_type":"box","text":"futures contracts linked to the value of emission allowances are known as “carbon futures.”","page_number":52,"box":{"x":68,"y":687,"width":657,"height":9}},{"id":"5c091f34-b91c-4340-be2c-5145cc392672","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":52,"box":{"x":101,"y":710,"width":792,"height":11}},{"id":"6856c029-376b-4e87-a9f3-ea1a8466a926","block_type":"box","text":"for carbon futures contracts. Changes in law, market conditions and expectations, position limits, collateral","page_number":52,"box":{"x":68,"y":725,"width":764,"height":11}},{"id":"3b0339b6-9a56-4f2a-b7d0-fc9ee141ccf3","block_type":"box","text":"requirements, and other factors each can impact the supply of and demand for carbon futures contracts. The market","page_number":52,"box":{"x":69,"y":740,"width":832,"height":11}},{"id":"a168cc2f-2980-4703-a266-cd7355a4d609","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":52,"box":{"x":68,"y":755,"width":841,"height":11}},{"id":"23690781-d2f4-42b6-9307-dd799bd98fdd","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":52,"box":{"x":69,"y":770,"width":819,"height":11}},{"id":"b565cf08-a4fc-404f-9089-2bfc147dd83a","block_type":"box","text":"difficult to find a counterpar ty willing to transact at a reasonable price and sufficient size.","page_number":52,"box":{"x":69,"y":785,"width":637,"height":12}},{"id":"4c02c391-10a9-46f6-8e26-8883846f0fbd","block_type":"box","text":"Swap Agreements.","page_number":52,"box":{"x":102,"y":808,"width":131,"height":11}},{"id":"733fefb9-eef2-4444-87a2-83f381cb0738","block_type":"box","text":"A Fund may enter into swap agreements for hedging purposes or speculative purposes. Swap agreements are","page_number":52,"box":{"x":101,"y":831,"width":782,"height":11}},{"id":"941d117f-6a55-47f1-bde2-e2aacca8fc7f","block_type":"box","text":"OTC contracts entered into primarily by financial institutions and institutional investors which may or may not be","page_number":52,"box":{"x":69,"y":846,"width":796,"height":11}},{"id":"63c6b8f0-d318-4a89-8d10-6e6912e2c3a7","block_type":"box","text":"cleared by a central clearinghouse. In a standard “swap” transaction, two par ties agree to exchange the returns","page_number":52,"box":{"x":69,"y":861,"width":799,"height":11}},{"id":"01ac6ce7-9364-47d0-8f0a-94ffa48a0846","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":52,"box":{"x":69,"y":876,"width":792,"height":11}},{"id":"a388941e-fb83-407c-a7ec-c2ed38ca6ef0","block_type":"box","text":"factor. The gross returns to be exchanged or “swapped” between the par ties are generally calculated with respect to","page_number":52,"box":{"x":68,"y":891,"width":832,"height":12}},{"id":"da09bc6c-13b6-468e-99de-18ab110e1a0c","block_type":"box","text":"a “notional amount,”","page_number":52,"box":{"x":69,"y":907,"width":147,"height":10}},{"id":"654ca520-1abb-4144-b78e-64ca8122d06b","block_type":"box","text":"e.g.","page_number":52,"box":{"x":223,"y":908,"width":25,"height":10}},{"id":"c809150c-9a25-4bec-aed7-658609d37ed8","block_type":"box","text":", the return or increase in value of a par ticular dollar amount invested at a par ticular","page_number":52,"box":{"x":251,"y":906,"width":602,"height":11}},{"id":"0f69c483-87bf-4ead-8388-f9deeb7850da","block_type":"box","text":"II-17","page_number":52,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"25e3c139-d858-4017-9eec-46da59eebe2b","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":52,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8ae2cf65-b721-458b-b76b-22ff3157104d","block_type":"box","text":"interest rate, in a par ticular foreign currency, or in a “basket” of securities representing a par ticular index. The","page_number":53,"box":{"x":70,"y":45,"width":787,"height":11}},{"id":"862e2834-b311-4d24-97a1-2510820c938d","block_type":"box","text":"notional amount of the swap agreement is only used to calculate the obligations that the par ties to a swap","page_number":53,"box":{"x":69,"y":60,"width":762,"height":11}},{"id":"16f57896-a6f7-467e-980f-07f20acd97c2","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":53,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"6ee49774-bcc6-4db1-bf70-43cc0104fdf9","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":53,"box":{"x":69,"y":90,"width":832,"height":11}},{"id":"796f5ac0-74a5-4784-b012-3c7b98d28cc7","block_type":"box","text":"by each par ty to the agreement. Swaps that are not cleared involve substantial counterpar ty risk. A Fund will typically","page_number":53,"box":{"x":69,"y":105,"width":835,"height":11}},{"id":"23beb8b2-0e9a-4147-9344-c6f87e85ece9","block_type":"box","text":"attempt to mitigate this counterpar ty risk by entering into swap agreements only with creditwor thy entities that have","page_number":53,"box":{"x":69,"y":120,"width":826,"height":12}},{"id":"5bd0a421-3a1e-4e2a-b81b-467adcd43202","block_type":"box","text":"substantial capital or that have provided the Fund with a third-par ty guaranty or other credit suppor t. A Fund’s ability","page_number":53,"box":{"x":69,"y":136,"width":827,"height":11}},{"id":"726ab66d-a52d-4e5e-bac5-e573af898182","block_type":"box","text":"to use swap agreements may be restricted by the tax rules applicable to registered investment companies.","page_number":53,"box":{"x":68,"y":151,"width":763,"height":11}},{"id":"27a245c1-45cd-4943-ae77-0a89df338c50","block_type":"box","text":"Credit Default Swaps and Similar Instruments.","page_number":53,"box":{"x":102,"y":173,"width":329,"height":11}},{"id":"2fb1786c-527e-4e09-bfcb-5ac88ebb7b3b","block_type":"box","text":"Cer tain Funds may enter into credit default swaps and similar","page_number":53,"box":{"x":438,"y":173,"width":439,"height":11}},{"id":"7a75018c-3075-4e67-849a-061595820db2","block_type":"box","text":"instruments. Credit default swaps are standardized agreements in which the protection “buyer” pays the protection","page_number":53,"box":{"x":70,"y":188,"width":821,"height":12}},{"id":"90df9c8c-ee98-4b94-8725-73373471fa6f","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":53,"box":{"x":70,"y":203,"width":831,"height":12}},{"id":"24198061-7264-4898-b91f-47c3b15d4a36","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":53,"box":{"x":69,"y":218,"width":801,"height":12}},{"id":"cd08e217-85e3-4423-a8cd-3255e0dc12f4","block_type":"box","text":"buyer the difference between the notional amount of the contract and the value of a por tfolio of securities issued by","page_number":53,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"d2461d8f-9fdb-402a-a017-94ea8a7b1182","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":53,"box":{"x":68,"y":249,"width":798,"height":11}},{"id":"28e51390-0bfb-46ad-b9d0-4489dcd4db9c","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":53,"box":{"x":69,"y":264,"width":827,"height":11}},{"id":"c0f6a218-5484-4dfa-bd64-b0208b705d46","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":53,"box":{"x":69,"y":279,"width":836,"height":11}},{"id":"f6853834-9cec-4e57-9de8-5037988c0889","block_type":"box","text":"index CDS.","page_number":53,"box":{"x":70,"y":294,"width":75,"height":9}},{"id":"21e682a1-7792-461f-9cf9-64b13892dff1","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":53,"box":{"x":102,"y":317,"width":800,"height":11}},{"id":"63ad41a0-6146-4fa3-a497-88a5c81cacee","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":53,"box":{"x":69,"y":332,"width":806,"height":9}},{"id":"ab8c30ec-b18b-4b86-a5ef-88cab0c8858a","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":53,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"f64a084e-c661-47ce-99bf-2c9262b1cdd9","block_type":"box","text":"available only at unfavorable prices, as would be the case in a so-called “shor t squeeze.” In cer tain instances of","page_number":53,"box":{"x":69,"y":362,"width":804,"height":11}},{"id":"16044e1f-b996-4787-9456-b8a02c0e56c2","block_type":"box","text":"issuer defaults or restructurings, it has been unclear under the standard industry documentation for credit default","page_number":53,"box":{"x":70,"y":377,"width":812,"height":12}},{"id":"70b8180a-0c09-46f5-b5b3-2bec38de4fab","block_type":"box","text":"swaps whether or not a “credit event” triggering the seller’s payment obligation had occurred. Cer tain initiatives","page_number":53,"box":{"x":69,"y":392,"width":798,"height":12}},{"id":"077e4d48-6021-47d7-9852-262f3d5a77ca","block_type":"box","text":"adopted by derivatives market par ticipants, including the International Swaps and Derivatives Association (“ISDA”),","page_number":53,"box":{"x":69,"y":408,"width":819,"height":11}},{"id":"80aebea8-35ca-4def-b506-26a19831853f","block_type":"box","text":"are designed to implement uniform settlement terms into standard credit default swap documentation, as well as","page_number":53,"box":{"x":69,"y":423,"width":810,"height":11}},{"id":"468ef443-31d7-4bba-a13b-64f7f794160f","block_type":"box","text":"refine the practices for the transparent conduct of the credit default swap market generally. Among these initiatives","page_number":53,"box":{"x":69,"y":438,"width":821,"height":11}},{"id":"acfbf40a-b78d-4601-af6c-b3e8a7bc1e7b","block_type":"box","text":"are the ISDA Credit Derivatives Determination Committee and the implementation of market-wide cash settlement","page_number":53,"box":{"x":69,"y":453,"width":811,"height":11}},{"id":"0f3f3d1b-0c21-41b0-b2bc-1b9361fb196c","block_type":"box","text":"protocols applicable to all market-standard credit default swaps. These initiatives are intended to reduce both the","page_number":53,"box":{"x":70,"y":468,"width":809,"height":11}},{"id":"40ccba88-7a81-4b44-a3a8-684d0b24a821","block_type":"box","text":"uncer tainty as to the occurrence of credit events and the risk of a “shor t squeeze” by providing that the ISDA Credit","page_number":53,"box":{"x":69,"y":483,"width":827,"height":11}},{"id":"5314bc81-714a-439f-9c0f-9a1d7e934df8","block_type":"box","text":"Derivatives Determinations Committee will make determinations as to whether a credit event has occurred, establish","page_number":53,"box":{"x":70,"y":498,"width":834,"height":11}},{"id":"2506aff8-de2c-4f8e-819d-91d4f6c39f97","block_type":"box","text":"an auction to determine a settlement price and identify the deliverable securities for purposes of the auction,","page_number":53,"box":{"x":69,"y":513,"width":778,"height":11}},{"id":"6fdaee17-d395-49e3-9ce4-e3cce88f1345","block_type":"box","text":"although the ISDA Credit Derivatives Determinations Committee may in cer tain limited circumstances refrain from","page_number":53,"box":{"x":69,"y":528,"width":809,"height":12}},{"id":"e3afbcd9-2936-4259-97ab-25ff5935da83","block_type":"box","text":"doing so. In the event the ISDA Credit Derivatives Determinations Committee cannot reach a timely resolution with","page_number":53,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"204f1e22-4c8f-4c9c-9408-0b8e9c9e3e46","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":53,"box":{"x":69,"y":559,"width":807,"height":11}},{"id":"78444a0c-6206-436c-9285-cdef0a6d3313","block_type":"box","text":"realize the full value of the credit default swap upon a default by the reference entity. Fur thermore, a Fund may enter","page_number":53,"box":{"x":69,"y":574,"width":832,"height":11}},{"id":"23278e60-2bf7-4062-8035-9690adf50a02","block_type":"box","text":"into cer tain credit default swaps or similar instruments that may not be covered by these initiatives.","page_number":53,"box":{"x":70,"y":589,"width":711,"height":11}},{"id":"2bf70d54-445a-4051-9a9b-5f72f4492e51","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":53,"box":{"x":102,"y":612,"width":757,"height":11}},{"id":"55315cc9-abfe-4c57-8c83-a9ec8c88818c","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":53,"box":{"x":69,"y":627,"width":794,"height":11}},{"id":"1e9f16dc-1303-42bd-bc28-b73d2d4d0a5b","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":53,"box":{"x":69,"y":642,"width":830,"height":11}},{"id":"b6571398-1ed3-42d0-a44a-b7f56b7165e0","block_type":"box","text":"settlement auction, together with the up-front or periodic payments previously received, may be less than the amount","page_number":53,"box":{"x":69,"y":657,"width":835,"height":11}},{"id":"005ab278-e2da-4237-ad39-2c6c398e858c","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":53,"box":{"x":70,"y":672,"width":817,"height":11}},{"id":"29f3c81f-80f9-46a9-8cad-85c06da3b90b","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":53,"box":{"x":69,"y":687,"width":820,"height":11}},{"id":"3e06d74c-f6e9-4660-b266-5c84458be8f8","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":53,"box":{"x":68,"y":702,"width":833,"height":12}},{"id":"830cb8d4-a7dc-4985-8906-586588abdaea","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":53,"box":{"x":69,"y":717,"width":837,"height":12}},{"id":"b68446db-ed3a-4c57-a622-64a3bb5a90a5","block_type":"box","text":"the event the ISDA Credit Derivatives Determinations Committee does not establish a cash settlement auction and","page_number":53,"box":{"x":68,"y":733,"width":820,"height":9}},{"id":"f3281022-dfc2-4fea-8378-fbbe3f0017b2","block_type":"box","text":"identify the relevant deliverable securities or loans, the credit default swap buyer will have broad discretion to select","page_number":53,"box":{"x":70,"y":748,"width":828,"height":11}},{"id":"704bc944-c56e-459e-ab87-ba5a766fe4d9","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":53,"box":{"x":68,"y":763,"width":815,"height":11}},{"id":"f9c4f04e-91ee-48ae-a70f-6ccd7b77aaa1","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":53,"box":{"x":68,"y":778,"width":814,"height":11}},{"id":"7d8abecb-21a3-4717-94d4-11514ae37ba6","block_type":"box","text":"credit default swaps generally trade on the basis of theoretical pricing and valuation models, which may not","page_number":53,"box":{"x":69,"y":793,"width":766,"height":11}},{"id":"6bfcd9f2-5ec0-457e-9895-8605a2f2b3bc","block_type":"box","text":"accurately value such swap positions when established or when subsequently traded or unwound under actual market","page_number":53,"box":{"x":69,"y":808,"width":840,"height":11}},{"id":"d5595d04-9af9-4ba6-885d-b21e8c9a4e23","block_type":"box","text":"conditions.","page_number":53,"box":{"x":69,"y":823,"width":76,"height":9}},{"id":"1293b745-4fdc-489c-9649-e7a72c5fee04","block_type":"box","text":"Dodd-Frank requires that cer tain index CDS be executed in regulated markets and submitted for clearing to","page_number":53,"box":{"x":102,"y":846,"width":762,"height":11}},{"id":"510bd955-1008-44ad-bcaa-0429ec2f6103","block_type":"box","text":"regulated clearinghouses. See “—Derivatives — Regulation of Derivatives — Dodd-Frank Regulations” above. Other","page_number":53,"box":{"x":69,"y":861,"width":824,"height":11}},{"id":"b2cbdd56-f65a-4b2c-94e6-51923868504e","block_type":"box","text":"single-name CDS and index CDS are permitted, although not required, to be cleared through regulated","page_number":53,"box":{"x":69,"y":876,"width":727,"height":11}},{"id":"e33c9a07-b99c-4b84-951b-ce9a4246aeb0","block_type":"box","text":"clearinghouses. The Funds clear all credit default swaps that are subject to mandatory clearing and may voluntarily","page_number":53,"box":{"x":69,"y":891,"width":819,"height":12}},{"id":"5e2f7388-6722-47e4-9860-f3b916e8fe00","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":53,"box":{"x":69,"y":906,"width":764,"height":12}},{"id":"f3020aea-3296-40ea-b53f-8cf805fe6705","block_type":"box","text":"II-18","page_number":53,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e8a4bd0d-0115-4d10-aab4-a5f39cc6d32a","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":53,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e8158212-81ab-4e06-9e41-a0de0c6c359b","block_type":"box","text":"counterpar ty risk with respect to the clearinghouse when entering into cleared single-name CDS and cleared index","page_number":54,"box":{"x":69,"y":45,"width":813,"height":11}},{"id":"66ec65fc-8f76-4446-ac48-6e0969909cbf","block_type":"box","text":"CDS. The Funds face significant counterpar ty risk with respect to their counterpar ties to non-cleared credit default","page_number":54,"box":{"x":69,"y":60,"width":813,"height":11}},{"id":"cd534ace-cf53-4732-a555-ad5e0ee27294","block_type":"box","text":"swaps and similar instruments. A Fund typically will enter into non-cleared credit default swaps and similar","page_number":54,"box":{"x":69,"y":75,"width":759,"height":11}},{"id":"5b310c62-deed-4d20-abbc-e22bc230e91e","block_type":"box","text":"instruments with swap dealers and creditwor thy entities that have substantial capital or that have provided the Fund","page_number":54,"box":{"x":70,"y":90,"width":828,"height":11}},{"id":"81de7e40-b537-4634-a089-9ae5312297fe","block_type":"box","text":"with a third-par ty guaranty or other credit suppor t.","page_number":54,"box":{"x":68,"y":105,"width":355,"height":11}},{"id":"7cebbbdd-25ed-43e1-adcb-fc217148bfc0","block_type":"box","text":"In cer tain instances, a Fund may enter into bespoke credit default swaps or similar instruments either as","page_number":54,"box":{"x":102,"y":128,"width":750,"height":11}},{"id":"ec3e2840-9d9c-4e80-8f3d-42faf039a20e","block_type":"box","text":"protection buyer or protection seller. While these contracts are similar in their operation to the market-standard credit","page_number":54,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"16cedada-2131-4d46-9ddd-d95ac95c3fec","block_type":"box","text":"default swaps described above, they are less standardized and instead have bespoke or tailored features. For","page_number":54,"box":{"x":69,"y":158,"width":785,"height":11}},{"id":"ab875b3d-08cb-4afc-b5b4-4cd8721d646e","block_type":"box","text":"example, as compared to market-standard credit defaults, the range of “credit events” triggering settlement of such","page_number":54,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"67a61c45-5951-4b7d-a941-c5f2856c79f0","block_type":"box","text":"bespoke contracts may be narrower or broader, any such triggered contracts are settled by physical delivery of the","page_number":54,"box":{"x":69,"y":188,"width":814,"height":12}},{"id":"9de28528-d62f-4d69-ac6b-d6dd4023eb28","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":54,"box":{"x":69,"y":203,"width":839,"height":12}},{"id":"258cbb1d-07e5-4d85-8bc5-f3e4f49be6fb","block_type":"box","text":"securities as the reference obligations and/or deliverable obligations.","page_number":54,"box":{"x":69,"y":218,"width":495,"height":12}},{"id":"c1ba7f2d-166e-4d2d-a20b-0dd622e9da0f","block_type":"box","text":"In addition, credit default swaps and similar instruments generally involve greater risks than if a Fund had","page_number":54,"box":{"x":102,"y":241,"width":752,"height":11}},{"id":"20d3c5c1-1309-45f9-97e3-869d9f1b126d","block_type":"box","text":"invested in the reference obligation directly and are subject to significant credit risk, correlation risk, leverage risk,","page_number":54,"box":{"x":70,"y":256,"width":814,"height":12}},{"id":"9efbe911-61e4-44f4-a375-ef99a253fcb4","block_type":"box","text":"illiquidity risk and market risk. See “—Risk Factors in Derivatives” above.","page_number":54,"box":{"x":70,"y":272,"width":520,"height":11}},{"id":"fecdde5d-1ba8-4e45-bbf0-f5f567b9ec66","block_type":"box","text":"Interest Rate Swaps, Floors and Caps.","page_number":54,"box":{"x":102,"y":294,"width":273,"height":11}},{"id":"d8f632af-6cf6-4f4e-98b6-de802036d3c2","block_type":"box","text":"Cer tain Funds may enter into OTC derivatives in the form of interest rate","page_number":54,"box":{"x":381,"y":294,"width":515,"height":11}},{"id":"254d9b73-d08e-4155-af8b-c3b59ddf2d69","block_type":"box","text":"swaps and interest rate caps and floors. As described in fur ther detail below, a Fund may enter into these","page_number":54,"box":{"x":69,"y":309,"width":755,"height":11}},{"id":"d1f15fe2-63bd-4a89-bac2-32ff98a677ef","block_type":"box","text":"transactions primarily to preserve a return or spread on a par ticular investment or por tion of its holdings, as a","page_number":54,"box":{"x":68,"y":324,"width":788,"height":12}},{"id":"54ed9248-efb1-45ea-9112-7b7f7d0f6db0","block_type":"box","text":"duration management technique, to protect against an increase in the price of securities a Fund anticipates","page_number":54,"box":{"x":69,"y":339,"width":768,"height":12}},{"id":"93dcd186-973a-4ff3-8d85-4c1193d85ea7","block_type":"box","text":"purchasing at a later date, or for speculation to increase returns.","page_number":54,"box":{"x":70,"y":355,"width":461,"height":11}},{"id":"51eea6c4-0f65-47c1-962b-fae995b6a8a6","block_type":"box","text":"Dodd-Frank requires that cer tain interest rate swaps be executed in regulated markets and submitted for","page_number":54,"box":{"x":102,"y":377,"width":748,"height":12}},{"id":"dfffcf9c-7bff-43df-817c-97cce8e9fa13","block_type":"box","text":"clearing to regulated clearinghouses. See “—Regulation of Derivatives — Dodd-Frank Regulations” above. Other","page_number":54,"box":{"x":69,"y":392,"width":799,"height":12}},{"id":"c778d423-2137-4ca2-bde9-7cbd2542ebc7","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":54,"box":{"x":70,"y":407,"width":829,"height":12}},{"id":"3e1cce74-95e6-4837-ae08-06254fd18b2c","block_type":"box","text":"by the Funds are cleared. The Funds face counterpar ty risk with respect to the clearinghouse when entering into","page_number":54,"box":{"x":69,"y":423,"width":797,"height":11}},{"id":"0e276d79-b0b2-46d4-9f98-9de8ef834718","block_type":"box","text":"cleared interest rate swaps.","page_number":54,"box":{"x":69,"y":438,"width":198,"height":11}},{"id":"660b9a6c-db8c-48cf-b130-d361a2066007","block_type":"box","text":"The Funds face significant counterpar ty risk with respect to their counterpar ties to non-cleared interest rate","page_number":54,"box":{"x":101,"y":460,"width":766,"height":12}},{"id":"72b2721a-aaf0-4223-80aa-2d8adaaf66af","block_type":"box","text":"swaps and interest rate caps and floors. The typical counterpar ties for a Fund’s non-cleared interest rate derivatives","page_number":54,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"0e039c99-a74c-42f8-8522-f0e0659ddc37","block_type":"box","text":"transactions are swap dealers and other creditwor thy entities that have substantial capital or that have provided the","page_number":54,"box":{"x":68,"y":491,"width":830,"height":11}},{"id":"b454c7ad-366c-4f23-9764-542611d006b6","block_type":"box","text":"Fund with a third-par ty guaranty or other credit suppor t. If the Fund’s counterpar ty defaults on such a transaction, a","page_number":54,"box":{"x":70,"y":506,"width":822,"height":11}},{"id":"f3d1ac3a-3dcb-4d53-a7f2-10eb90b56838","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":54,"box":{"x":70,"y":521,"width":824,"height":11}},{"id":"93e02cf5-5348-45a0-b462-ab6e64ca1a8b","block_type":"box","text":"be successful in enforcing such remedies. The market for interest rate swaps is relatively liquid in comparison with","page_number":54,"box":{"x":69,"y":536,"width":819,"height":11}},{"id":"9cc3236f-1f6d-4931-a2c5-0a68ca6ffa7e","block_type":"box","text":"other similar instruments traded in the interbank market. A Fund may be limited in its ability to enter into cer tain","page_number":54,"box":{"x":69,"y":551,"width":801,"height":11}},{"id":"2c268167-bfc2-4ec5-8aa5-c235df6fb793","block_type":"box","text":"interest rate derivatives due to applicable income tax requirements.","page_number":54,"box":{"x":70,"y":566,"width":480,"height":11}},{"id":"0dea7e98-e4b5-4eb6-b3a7-162be010e9f6","block_type":"box","text":"Interest rate swaps are transactions in which each par ty makes periodic interest payments based on a fixed or","page_number":54,"box":{"x":102,"y":589,"width":790,"height":11}},{"id":"6f5619e8-700f-465f-bae7-cd8c98ff7d74","block_type":"box","text":"variable interest rate, index or asset in return for periodic payments from its counterpar ty based on a different fixed","page_number":54,"box":{"x":68,"y":604,"width":825,"height":11}},{"id":"c0676cd7-9c7f-4e85-8bfa-bcab537ad0ac","block_type":"box","text":"or variable interest rate, index or asset.","page_number":54,"box":{"x":69,"y":619,"width":280,"height":11}},{"id":"efc8de27-46fb-4095-8063-134a4d186fe5","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":54,"box":{"x":101,"y":642,"width":780,"height":11}},{"id":"ca4131ef-e9cc-4f7c-b261-f26233c425d1","block_type":"box","text":"predetermined interest rate, to receive payments of interest on a notional principal amount from the par ty selling","page_number":54,"box":{"x":70,"y":657,"width":805,"height":11}},{"id":"1db8828d-377f-451f-a72b-93dcfab590e0","block_type":"box","text":"such interest rate floor.","page_number":54,"box":{"x":69,"y":672,"width":165,"height":9}},{"id":"5a02370b-6a48-4df3-b999-f75d1d229919","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":54,"box":{"x":101,"y":695,"width":780,"height":11}},{"id":"dd18b2f2-740a-454e-8a36-dfc6434c7a94","block_type":"box","text":"predetermined interest rate, to receive payments of interest on a notional principal amount from the par ty selling","page_number":54,"box":{"x":70,"y":710,"width":805,"height":11}},{"id":"d976bbc4-6517-46c1-be82-051199041158","block_type":"box","text":"such interest rate cap.","page_number":54,"box":{"x":69,"y":725,"width":159,"height":11}},{"id":"64f4630c-6d73-4889-b90a-abdc99b73272","block_type":"box","text":"A Fund may enter into an interest rate swap to effectively exchange with another par ty their respective","page_number":54,"box":{"x":101,"y":748,"width":729,"height":11}},{"id":"4ebedf00-2dcd-4297-80af-d5c6f0004e48","block_type":"box","text":"commitments to pay or receive interest,","page_number":54,"box":{"x":69,"y":763,"width":282,"height":11}},{"id":"7d7a6ed9-e16f-4dd9-8dd1-c32e923ebbbe","block_type":"box","text":"e.g.","page_number":54,"box":{"x":359,"y":764,"width":24,"height":10}},{"id":"adb721f0-0cf5-4a4a-972e-27dbb17ce3ce","block_type":"box","text":", an exchange of fixed rate payments for floating rate payments. For","page_number":54,"box":{"x":386,"y":763,"width":482,"height":11}},{"id":"f58dea8b-47e3-4172-ba33-e1883f8c46f6","block_type":"box","text":"example, if a Fund holds a mor tgage-backed security with an interest rate that is reset only once each year, it may","page_number":54,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"e6e95c82-1978-4264-9f09-14a8abd2afc8","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":54,"box":{"x":69,"y":793,"width":823,"height":11}},{"id":"e8d4332e-fc0e-489a-95ee-d37ed4844d57","block_type":"box","text":"This would enable a Fund to offset a decline in the value of the mor tgage-backed security due to rising interest rates","page_number":54,"box":{"x":68,"y":808,"width":832,"height":11}},{"id":"a0daecf4-ea98-436c-bf72-616725d50827","block_type":"box","text":"but would also limit its ability to benefit from falling interest rates. Conversely, if a Fund holds a mor tgage-backed","page_number":54,"box":{"x":69,"y":823,"width":807,"height":12}},{"id":"dbe0066f-1f51-4634-8bfc-4fbc23afe442","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":54,"box":{"x":69,"y":839,"width":836,"height":11}},{"id":"131ff8e5-043e-4b8b-a93a-78ab62d0f902","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":54,"box":{"x":69,"y":853,"width":826,"height":12}},{"id":"94770e95-f46f-4584-b201-eaec439a3bf7","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":54,"box":{"x":69,"y":869,"width":840,"height":11}},{"id":"f24d2302-d2af-4886-b7cc-df40d8b3fc9c","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":54,"box":{"x":69,"y":884,"width":810,"height":11}},{"id":"674d850e-1759-4ca0-a706-902ca036bca7","block_type":"box","text":"year interest rates, but would preclude it from taking full advantage of rising interest rates.","page_number":54,"box":{"x":68,"y":899,"width":646,"height":11}},{"id":"0286a1fc-f983-4bb3-a028-77693055d2c2","block_type":"box","text":"II-19","page_number":54,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"3bac03d2-9205-446e-bd30-c40ad9c3d292","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":54,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ab11f881-749c-4fb3-b360-21e03fd885f4","block_type":"box","text":"Gains from transactions in interest rate swaps distributed to shareholders will be taxable as ordinary income or,","page_number":55,"box":{"x":102,"y":45,"width":798,"height":11}},{"id":"578cbbd5-980a-46b0-95b8-58ee998aa79a","block_type":"box","text":"in cer tain circumstances, as long term capital gains to shareholders.","page_number":55,"box":{"x":70,"y":60,"width":490,"height":11}},{"id":"eb6072cb-fcda-4504-8d98-202ff5bae0d4","block_type":"box","text":"Interest rate swaps and interest rate caps and floors may be subject to correlation risk, leverage risk, illiquidity","page_number":55,"box":{"x":102,"y":82,"width":791,"height":12}},{"id":"d4f6b7d0-0166-420d-8b66-c82eed2e7690","block_type":"box","text":"risk and market risk. See “—Risk Factors in Derivatives” above.","page_number":55,"box":{"x":69,"y":98,"width":454,"height":9}},{"id":"5af78d2f-4450-4bdc-9a56-17deae6fd5b2","block_type":"box","text":"Total Return Swaps.","page_number":55,"box":{"x":103,"y":120,"width":139,"height":11}},{"id":"30aaba14-dcd9-4445-9fca-1643a62ecdb0","block_type":"box","text":"Total return swaps are contracts in which one par ty agrees to make periodic payments to","page_number":55,"box":{"x":249,"y":120,"width":634,"height":12}},{"id":"28c3e2ec-451d-4c58-9bc8-4f10db9e9f6f","block_type":"box","text":"the other par ty based on the return of the assets underlying the contract in exchange for periodic payments based on","page_number":55,"box":{"x":68,"y":135,"width":838,"height":12}},{"id":"0bddea94-e22b-420a-a11b-5356b7532c4a","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":55,"box":{"x":69,"y":150,"width":764,"height":12}},{"id":"e97eccd8-1f96-43c2-a07c-b925adbb629c","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":55,"box":{"x":69,"y":166,"width":791,"height":11}},{"id":"b4ab528f-0e34-4d47-847a-469dc3cff29a","block_type":"box","text":"asset. The asset underlying the contract may include a specified security, basket of securities or securities indices.","page_number":55,"box":{"x":69,"y":181,"width":821,"height":11}},{"id":"21cc2801-ca70-48a0-8172-3410ea8d85eb","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":55,"box":{"x":68,"y":196,"width":838,"height":11}},{"id":"e5c1b032-4d58-4b40-8990-403a4cb0b878","block_type":"box","text":"“contracts for difference.”","page_number":55,"box":{"x":70,"y":211,"width":184,"height":9}},{"id":"4cf531d1-bd1c-4393-a234-0c88a68ff066","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":55,"box":{"x":101,"y":234,"width":770,"height":11}},{"id":"67fd9cd7-4205-474f-b4e1-cee5c9b2acd9","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":55,"box":{"x":69,"y":249,"width":780,"height":11}},{"id":"301bc7a0-021b-4e9c-a29d-cc434d924f46","block_type":"box","text":"required to deposit initial margin but the par ties do not exchange the notional amount. As a result, total return swaps","page_number":55,"box":{"x":69,"y":264,"width":839,"height":11}},{"id":"66d31f13-9bd4-4948-b989-a6c6ea797429","block_type":"box","text":"may effectively add leverage to the Fund’s por tfolio because the Fund would be subject to investment exposure on","page_number":55,"box":{"x":69,"y":279,"width":816,"height":11}},{"id":"0f831d01-09c9-49f0-a668-3e81d9f67f48","block_type":"box","text":"the notional amount of the swap.","page_number":55,"box":{"x":68,"y":294,"width":235,"height":11}},{"id":"f4a7b72c-e463-40df-a544-bc32edcb53d9","block_type":"box","text":"Total return swaps are subject to significant correlation risk, leverage risk, illiquidity risk, market risk and","page_number":55,"box":{"x":101,"y":317,"width":746,"height":11}},{"id":"c6c7c39d-89ed-4d01-8627-47864ec99f67","block_type":"box","text":"counterpar ty risk. See “—Risk Factors in Derivatives” above.","page_number":55,"box":{"x":69,"y":332,"width":433,"height":11}},{"id":"bd5333eb-e49f-43fc-9589-79d83794e992","block_type":"box","text":"Options.","page_number":55,"box":{"x":102,"y":355,"width":57,"height":11}},{"id":"9ab0d9fc-7fa4-49f5-9f52-bdb19b8ff686","block_type":"box","text":"Options on Securities and Securities Indices.","page_number":55,"box":{"x":102,"y":377,"width":319,"height":11}},{"id":"95bb0737-9f92-4003-8893-ace989354e80","block_type":"box","text":"A Fund may engage in transactions in options on individual","page_number":55,"box":{"x":427,"y":377,"width":418,"height":12}},{"id":"8aadd522-4c51-4dd9-a164-ad7e9497d993","block_type":"box","text":"securities, baskets of securities or securities indices, or par ticular measurements of value or rates, such as an index","page_number":55,"box":{"x":69,"y":392,"width":838,"height":11}},{"id":"7f590622-2db6-43ec-ba80-563c68f9dbc1","block_type":"box","text":"of the price of treasury securities or an index representative of shor t-term interest rates. Such investments may be","page_number":55,"box":{"x":69,"y":407,"width":820,"height":12}},{"id":"45a5796e-c0c3-4c3b-ae68-355f90b11ff2","block_type":"box","text":"made on exchanges and in the OTC markets. In general, exchange-traded options have standardized exercise prices","page_number":55,"box":{"x":69,"y":423,"width":826,"height":11}},{"id":"6cb84ca1-541a-4bf1-9b72-ed6a51c5ea87","block_type":"box","text":"and expiration dates and require the par ties to post margin against their obligations, and the per formance of the","page_number":55,"box":{"x":69,"y":438,"width":806,"height":11}},{"id":"86f9b2db-fef9-48fe-a0ce-ad832a9ec35e","block_type":"box","text":"par ties’ obligations in connection with such options is guaranteed by the exchange or a related clearing corporation.","page_number":55,"box":{"x":70,"y":453,"width":825,"height":11}},{"id":"d410cd6d-1f5b-4bd9-8ef7-28d7656211d3","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":55,"box":{"x":69,"y":468,"width":822,"height":11}},{"id":"02454254-14ae-46b6-b085-181bbd297be2","block_type":"box","text":"risk. OTC options also involve greater illiquidity risk.","page_number":55,"box":{"x":69,"y":483,"width":366,"height":11}},{"id":"dd8e487f-7d84-42ba-9e32-ce8310f2e298","block_type":"box","text":"A Fund may also engage in transactions in options which have additional features that result in different","page_number":55,"box":{"x":101,"y":506,"width":743,"height":11}},{"id":"37286fcd-0d87-49ce-9f5b-c12019572bb4","block_type":"box","text":"payment structures and/or expirations (commonly referred to as exotic options). For example, barrier options are","page_number":55,"box":{"x":70,"y":521,"width":804,"height":11}},{"id":"0a562bae-d565-465a-8e0f-a953690bc5e8","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":55,"box":{"x":69,"y":536,"width":827,"height":11}},{"id":"459bc412-134e-4838-b5b3-7e33f638236d","block_type":"box","text":"more predetermined levels on or before expiration. Binary options are another example of exotic options which have","page_number":55,"box":{"x":69,"y":551,"width":827,"height":11}},{"id":"34338ff8-f75e-4b24-b0e7-fadee4d6b91d","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":55,"box":{"x":69,"y":566,"width":812,"height":11}},{"id":"1c14b232-8676-4b6e-b241-b914657bb5b2","block_type":"box","text":"OTC markets.","page_number":55,"box":{"x":69,"y":581,"width":95,"height":9}},{"id":"08ef91ef-b350-4672-b4d7-d7e7623815ad","block_type":"box","text":"There are several risks associated with transactions in options on securities and indexes. For example, there are","page_number":55,"box":{"x":101,"y":604,"width":806,"height":11}},{"id":"c86e600d-ab71-43f2-8166-b0173324ddaf","block_type":"box","text":"significant differences between the securities and options markets that could result in an imper fect correlation","page_number":55,"box":{"x":69,"y":619,"width":791,"height":11}},{"id":"b291f97a-0990-4b82-9880-01d38d50a70f","block_type":"box","text":"between these markets, causing a given transaction not to achieve its objectives. In addition, a liquid market for","page_number":55,"box":{"x":69,"y":634,"width":801,"height":12}},{"id":"1737bb59-e92f-493d-9d45-83f5cbc33cb2","block_type":"box","text":"par ticular options, whether traded OTC or on a national securities exchange (“Exchange”) may be absent for reasons","page_number":55,"box":{"x":70,"y":649,"width":831,"height":12}},{"id":"8c555a48-0ea2-4012-a381-5be12243ef0c","block_type":"box","text":"which include the following: there may be insufficient trading interest in cer tain options; restrictions may be imposed","page_number":55,"box":{"x":68,"y":664,"width":833,"height":12}},{"id":"9658b090-33da-4804-b819-d07e6ce4f595","block_type":"box","text":"by an Exchange on opening transactions or closing transactions or both; trading halts, suspensions or other","page_number":55,"box":{"x":69,"y":680,"width":769,"height":11}},{"id":"8982038d-c831-41d9-86ae-9d5bef9631f0","block_type":"box","text":"restrictions may be imposed with respect to par ticular classes or series of options or underlying securities; unusual","page_number":55,"box":{"x":69,"y":695,"width":824,"height":11}},{"id":"5ecab6b8-2963-4292-84d3-665cbc3d6e3f","block_type":"box","text":"or unforeseen circumstances may interrupt normal operations on an Exchange; the facilities of an Exchange or the","page_number":55,"box":{"x":69,"y":710,"width":816,"height":11}},{"id":"3738cdd6-0045-47c6-bbef-4bbf4ec09f53","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":55,"box":{"x":69,"y":725,"width":796,"height":11}},{"id":"8da8796e-1fe3-4a3d-86d6-0636ae6f811b","block_type":"box","text":"Exchanges could, for economic or other reasons, decide or be compelled at some future date to discontinue the","page_number":55,"box":{"x":70,"y":740,"width":798,"height":11}},{"id":"e5b6c76a-12fe-4b4b-9252-626a6e27624b","block_type":"box","text":"trading of options (or a par ticular class or series of options), in which event the market on that Exchange (or in that","page_number":55,"box":{"x":68,"y":755,"width":822,"height":11}},{"id":"2ec1557b-3f26-446b-b164-20c389fcbfdc","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":55,"box":{"x":69,"y":770,"width":818,"height":12}},{"id":"cacca779-462f-4156-9211-c3bb1f1f6e14","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":55,"box":{"x":69,"y":785,"width":836,"height":12}},{"id":"9979917d-e942-4935-800d-22fc5c24f442","block_type":"box","text":"terms.","page_number":55,"box":{"x":68,"y":801,"width":45,"height":9}},{"id":"6c23aefb-e78f-452b-bb4e-9d13ab4d4c1e","block_type":"box","text":"Each of the options exchanges has established limitations governing the maximum number of call or put options","page_number":55,"box":{"x":102,"y":823,"width":801,"height":12}},{"id":"167ad6ef-cb14-452e-b86b-aff93acd0227","block_type":"box","text":"on the same asset that may be bought or written by a single investor, whether acting alone or in concer t with others","page_number":55,"box":{"x":69,"y":839,"width":826,"height":11}},{"id":"f98f9825-414c-4bc1-8457-1348f328a35a","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":55,"box":{"x":69,"y":853,"width":823,"height":12}},{"id":"5a7b0c6d-4f84-498f-b274-c23af97a123d","block_type":"box","text":"more accounts or through one or more brokers). Under these limitations, option positions of all investment","page_number":55,"box":{"x":69,"y":869,"width":762,"height":11}},{"id":"2f9905f6-511f-4817-88e2-4bd4317635a8","block_type":"box","text":"companies advised by the Manager are combined for purposes of these limits. Pursuant to these limitations, an","page_number":55,"box":{"x":69,"y":884,"width":798,"height":11}},{"id":"41220223-550f-4a4a-980f-f6964f7b2894","block_type":"box","text":"II-20","page_number":55,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f993b028-3854-459f-9603-fd3463c4270d","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":55,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5d3b8309-8337-436a-ac76-4c0a682f551f","block_type":"box","text":"exchange may order the liquidation of positions and may impose other sanctions or restrictions. These position limits","page_number":56,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"a322d1d0-70a7-47d7-8e0a-73f3ba94a6b8","block_type":"box","text":"may restrict the number of listed options that a Fund may buy or sell.","page_number":56,"box":{"x":69,"y":60,"width":491,"height":11}},{"id":"92b8d590-1cba-4eae-bb3b-4a28b29d8f60","block_type":"box","text":"Call Options.","page_number":56,"box":{"x":102,"y":83,"width":89,"height":10}},{"id":"97c10509-9ce2-42d5-9d90-13ea07f07316","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":56,"box":{"x":197,"y":82,"width":694,"height":12}},{"id":"68985a89-5b96-440a-9472-69bdd04b76fd","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":56,"box":{"x":70,"y":98,"width":838,"height":11}},{"id":"4dd3d50d-cc8b-4114-a26d-cff85affe639","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":56,"box":{"x":68,"y":113,"width":813,"height":11}},{"id":"b4ff6fe0-2060-4e1f-aa59-4cda574c4f01","block_type":"box","text":"Index options are similar to options on securities except that, rather than taking or making delivery of securities","page_number":56,"box":{"x":70,"y":128,"width":795,"height":11}},{"id":"da558b8c-832c-46b3-a62a-243c4658497f","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":56,"box":{"x":69,"y":143,"width":807,"height":11}},{"id":"05cc8da6-095b-4777-8851-a4c61920ee76","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":56,"box":{"x":69,"y":158,"width":830,"height":11}},{"id":"bdcb7f3d-a835-41e4-bc81-7594d0b27219","block_type":"box","text":"of the option.","page_number":56,"box":{"x":69,"y":173,"width":93,"height":11}},{"id":"6e290564-6b34-4241-a34e-136b49377919","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":56,"box":{"x":101,"y":196,"width":794,"height":11}},{"id":"269e2757-cffb-4640-b9d4-f1431cd50999","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":56,"box":{"x":69,"y":211,"width":823,"height":11}},{"id":"acbf34c1-cff2-444d-944a-82862f631ab1","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":56,"box":{"x":69,"y":226,"width":839,"height":11}},{"id":"b632124d-e8ac-4cda-b09a-2285ab3a094f","block_type":"box","text":"illiquid investments under the Funds’ Liquidity Program (as defined below) (“liquid assets”) designated on the","page_number":56,"box":{"x":70,"y":241,"width":778,"height":11}},{"id":"f771fd42-37b5-48c6-9b84-897749a8c80f","block_type":"box","text":"Manager’s or the sub-adviser’s books and records to the extent required by Commission guidelines.","page_number":56,"box":{"x":70,"y":256,"width":711,"height":12}},{"id":"2dfe15c4-3790-4711-8147-6c19d1ec30dc","block_type":"box","text":"A Fund may write (","page_number":56,"box":{"x":101,"y":279,"width":130,"height":11}},{"id":"3d06f17b-e211-4b24-9f0e-d9951aa4a62b","block_type":"box","text":"i.e.","page_number":56,"box":{"x":233,"y":279,"width":20,"height":9}},{"id":"e6ee3ca5-dfda-407e-a752-9351a9acbb80","block_type":"box","text":", sell) covered call options on the securities or instruments in which it may invest and to","page_number":56,"box":{"x":256,"y":279,"width":627,"height":11}},{"id":"5a8e53ee-b55c-4f8d-bc4d-ae7213dea826","block_type":"box","text":"enter into closing purchase transactions with respect to cer tain of such options. A covered call option is an option in","page_number":56,"box":{"x":69,"y":294,"width":831,"height":11}},{"id":"b066e628-1fb4-40cc-9332-45c7943f6527","block_type":"box","text":"which a Fund, in return for a premium, gives another par ty a right to buy specified securities owned by the Fund at a","page_number":56,"box":{"x":68,"y":309,"width":827,"height":11}},{"id":"6d46ad01-0f1e-4214-915b-ae194992c138","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":56,"box":{"x":69,"y":324,"width":797,"height":12}},{"id":"f3c9a5f3-c0c8-4703-b860-29f889e675b8","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":56,"box":{"x":69,"y":339,"width":823,"height":12}},{"id":"a4126b3d-d4aa-4b81-9c2c-ace4dfeb5d27","block_type":"box","text":"By writing covered call options, a Fund gives up the oppor tunity, while the option is in effect, to profit from any price","page_number":56,"box":{"x":70,"y":355,"width":823,"height":11}},{"id":"1bde89b6-ff29-46e8-b275-8ae418aedbbe","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":56,"box":{"x":70,"y":370,"width":825,"height":11}},{"id":"390d987b-444f-42a9-a343-7f863fbbca82","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":56,"box":{"x":69,"y":385,"width":800,"height":11}},{"id":"b3cb7c1d-642b-46f0-bd99-1a78999c9b03","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":56,"box":{"x":69,"y":400,"width":792,"height":11}},{"id":"552759ed-01b9-4c38-bcc2-d18f09a9bc1e","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":56,"box":{"x":70,"y":415,"width":826,"height":11}},{"id":"5e5370ae-d407-4285-b81c-94448587c96f","block_type":"box","text":"a par tial hedge to the extent of the premium received against the price of the underlying security declining.","page_number":56,"box":{"x":69,"y":430,"width":760,"height":11}},{"id":"9526deb1-8ab5-42fb-9754-6d1f74ae4229","block_type":"box","text":"A Fund may write","page_number":56,"box":{"x":101,"y":453,"width":120,"height":11}},{"id":"3b5b77c8-1414-47c8-b550-44ab19970d1b","block_type":"box","text":"(i.e.","page_number":56,"box":{"x":228,"y":453,"width":25,"height":11}},{"id":"54f17451-8446-4986-ace4-599fa6297a35","block_type":"box","text":", sell) uncovered call options on securities or instruments in which it may invest but that","page_number":56,"box":{"x":256,"y":453,"width":628,"height":11}},{"id":"94793d13-7e43-4808-b2b1-71eb1312f821","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":56,"box":{"x":69,"y":468,"width":834,"height":11}},{"id":"7ad3d398-3a0d-4c59-bfa8-5774c04067e7","block_type":"box","text":"committing capital to the ownership of the underlying securities or instruments. When writing uncovered call options,","page_number":56,"box":{"x":69,"y":483,"width":830,"height":11}},{"id":"62b3304d-85a2-426b-ac8e-873a61ccc3c9","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":56,"box":{"x":69,"y":498,"width":825,"height":11}},{"id":"56a0e31e-a0c3-43a7-ac69-c89f81b59fb4","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":56,"box":{"x":69,"y":513,"width":818,"height":11}},{"id":"e26b0cbd-1a81-4c22-80fd-823f047b39eb","block_type":"box","text":"During periods of declining securities prices or when prices are stable, writing uncovered calls can be a profitable","page_number":56,"box":{"x":70,"y":528,"width":806,"height":12}},{"id":"81e70e3f-8b8e-46aa-8316-d8b357587437","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":56,"box":{"x":69,"y":544,"width":839,"height":11}},{"id":"2f27c2b1-b268-4907-be7e-64311f66c540","block_type":"box","text":"there is no underlying security held by a Fund that can act as a par tial hedge. Uncovered calls have speculative","page_number":56,"box":{"x":68,"y":559,"width":793,"height":11}},{"id":"de543653-c0a0-408e-93f2-ab6562a5c97b","block_type":"box","text":"characteristics and the potential for loss is unlimited. When an uncovered call is exercised, a Fund must purchase","page_number":56,"box":{"x":69,"y":574,"width":814,"height":11}},{"id":"33d6460a-7fd3-4d7b-86be-2940e8982000","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":56,"box":{"x":68,"y":589,"width":818,"height":11}},{"id":"4d15b0f1-c758-45f3-95a6-36ac8622c09c","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":56,"box":{"x":68,"y":604,"width":825,"height":11}},{"id":"ee6e8ad3-c6c6-4ce2-a2fb-7109d2ddebf1","block_type":"box","text":"exercise price, a Fund will lose the difference.","page_number":56,"box":{"x":69,"y":619,"width":326,"height":11}},{"id":"b0b2cc12-070a-4f09-9306-713213f475e1","block_type":"box","text":"Put Options.","page_number":56,"box":{"x":102,"y":642,"width":85,"height":11}},{"id":"7e3bd4f8-b876-46c1-8313-c0f7c3673cee","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":56,"box":{"x":194,"y":642,"width":712,"height":11}},{"id":"48b9489b-6cf5-4588-ac2a-55a1a889f12b","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":56,"box":{"x":68,"y":657,"width":828,"height":11}},{"id":"46cb3664-5484-41d1-8df9-b84ac09f76af","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":56,"box":{"x":69,"y":672,"width":816,"height":11}},{"id":"4225387a-6541-43c2-9ed0-6ea4be569c4a","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":56,"box":{"x":70,"y":687,"width":820,"height":11}},{"id":"fee07584-e648-43b8-b781-753e68f2b9b9","block_type":"box","text":"instruments will be par tially offset by the amount of the premium paid for the put option and any related transaction","page_number":56,"box":{"x":70,"y":702,"width":826,"height":11}},{"id":"360488ab-b616-498f-bd3f-3b2ce08c2512","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":56,"box":{"x":69,"y":717,"width":815,"height":12}},{"id":"c750c719-2e18-4178-ac06-51be7bcbfb82","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":56,"box":{"x":68,"y":732,"width":839,"height":11}},{"id":"d082c1a4-7234-4f94-87ac-14b272e7e4c0","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":56,"box":{"x":68,"y":748,"width":841,"height":11}},{"id":"a6d8b8d3-785f-4c95-8d5a-7a5353f1bbcf","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":56,"box":{"x":69,"y":763,"width":785,"height":11}},{"id":"837b2c42-6cea-4f0b-b867-55ee3683575c","block_type":"box","text":"purchase uncovered put options.","page_number":56,"box":{"x":70,"y":778,"width":231,"height":11}},{"id":"e0ed0c7e-c648-4a17-8a1a-887df6952483","block_type":"box","text":"A Fund also may write (","page_number":56,"box":{"x":101,"y":801,"width":165,"height":11}},{"id":"d32fafd4-f11b-444c-8fbe-dfaa77d594d9","block_type":"box","text":"i.e.","page_number":56,"box":{"x":268,"y":801,"width":20,"height":9}},{"id":"59fc0b56-e4a9-4581-bdd1-9098ed1b7ec1","block_type":"box","text":", sell) put options on the types of securities or instruments that may be held by the","page_number":56,"box":{"x":291,"y":801,"width":591,"height":11}},{"id":"1ec19986-5572-4c77-a8a2-a05794417b11","block_type":"box","text":"Fund. A Fund will receive a premium for writing a put option, which increases the Fund’s return.","page_number":56,"box":{"x":70,"y":816,"width":675,"height":11}},{"id":"59bab733-57c4-47ed-943b-b9e975deb587","block_type":"box","text":"A Fund also may write (","page_number":56,"box":{"x":101,"y":839,"width":165,"height":10}},{"id":"536bb983-c600-4016-abee-fc7677cc5297","block_type":"box","text":"i.e.","page_number":56,"box":{"x":268,"y":839,"width":20,"height":8}},{"id":"a0518d89-05f0-449b-b3a2-a0c87751ff41","block_type":"box","text":", sell) uncovered put options on securities or instruments in which it may invest but","page_number":56,"box":{"x":291,"y":839,"width":593,"height":10}},{"id":"13943d73-128c-4599-aaf2-49265ecd9b3e","block_type":"box","text":"with respect to which the Fund does not currently have a corresponding shor t position or has not deposited as","page_number":56,"box":{"x":68,"y":854,"width":789,"height":11}},{"id":"85b5ccbc-22f9-4be7-ad3e-d500e383918c","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":56,"box":{"x":69,"y":869,"width":773,"height":11}},{"id":"3d6d40a5-f85c-4eb8-8482-3171619ff5af","block_type":"box","text":"uncovered put option. The principal reason for writing uncovered put options is to receive premium income and to","page_number":56,"box":{"x":69,"y":884,"width":807,"height":11}},{"id":"0aa3ca4f-0e5a-4810-9b99-7b077741d7c3","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":56,"box":{"x":69,"y":899,"width":835,"height":11}},{"id":"42f001b5-2b80-4115-a778-d1ed01bcf50e","block_type":"box","text":"II-21","page_number":56,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d8836df3-f0d3-4904-9488-9e6e55a4f427","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":56,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6f412639-caa5-4fc0-b852-e6290d175c89","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":57,"box":{"x":68,"y":45,"width":818,"height":11}},{"id":"59c037f8-926b-452b-884c-39cf062140fe","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":57,"box":{"x":68,"y":60,"width":800,"height":11}},{"id":"cbc79fd9-2866-4487-a2cb-23881f2da163","block_type":"box","text":"expire wor thless and a Fund will retain the premium and will not have to purchase the securities or instruments at","page_number":57,"box":{"x":69,"y":75,"width":814,"height":11}},{"id":"f797dbf1-5528-4647-9485-493d84b8a784","block_type":"box","text":"the exercise price.","page_number":57,"box":{"x":68,"y":90,"width":130,"height":11}},{"id":"72f1b26e-afa4-4329-9546-ef5d25ed1a97","block_type":"box","text":"Options on Government National Mor tgage Association (“GNMA”) Cer tificates.","page_number":57,"box":{"x":102,"y":113,"width":556,"height":11}},{"id":"8b983f0a-01e9-4121-a05e-ae5adffcd008","block_type":"box","text":"The following information relates","page_number":57,"box":{"x":664,"y":113,"width":232,"height":11}},{"id":"cab432e8-d047-4615-9683-a1d79ba38ed1","block_type":"box","text":"to the unique characteristics of options on GNMA Cer tificates. Since the remaining principal balance of GNMA","page_number":57,"box":{"x":68,"y":128,"width":784,"height":11}},{"id":"8a089f06-16b0-4148-aef9-60afe256b914","block_type":"box","text":"Cer tificates declines each month as a result of mor tgage payments, a Fund, as a writer of a GNMA call holding GNMA","page_number":57,"box":{"x":69,"y":143,"width":840,"height":11}},{"id":"826c6098-a2f4-4346-995e-dafbe864d67a","block_type":"box","text":"Cer tificates as “cover” to satisfy its delivery obligation in the event of exercise, may find that the GNMA Cer tificates","page_number":57,"box":{"x":69,"y":158,"width":827,"height":11}},{"id":"6bf644b5-5856-4529-95c8-a522431c3aa4","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":57,"box":{"x":70,"y":173,"width":781,"height":11}},{"id":"dcb2f048-9f2e-4fb1-bb32-af2b746b92a9","block_type":"box","text":"purchase additional GNMA Cer tificates from the same pool (if obtainable) or other GNMA Cer tificates in the cash","page_number":57,"box":{"x":70,"y":188,"width":803,"height":11}},{"id":"8dc4b9e4-1a6e-4e24-8a4a-b18ad43c145a","block_type":"box","text":"market in order to maintain its “cover.”","page_number":57,"box":{"x":69,"y":204,"width":277,"height":8}},{"id":"cc7c98dc-1280-4330-9e71-d8d4e1467fdc","block_type":"box","text":"A GNMA Cer tificate held by a Fund to cover an option position in any but the nearest expiration month may cease","page_number":57,"box":{"x":101,"y":226,"width":807,"height":11}},{"id":"3d2bc064-0571-467b-a174-8ed3315810c3","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":57,"box":{"x":68,"y":241,"width":835,"height":11}},{"id":"c7c60efe-c1d8-4d9e-89f3-b579fdb3dd28","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":57,"box":{"x":69,"y":256,"width":821,"height":12}},{"id":"c94fbc39-6646-4dd6-afd2-5e34bb921f25","block_type":"box","text":"the Fund will either enter into a closing purchase transaction or replace such Cer tificate with a cer tificate that","page_number":57,"box":{"x":68,"y":271,"width":784,"height":12}},{"id":"f04e90d0-99fc-4f89-acae-4760c4f782a3","block_type":"box","text":"represents cover. When a Fund closes its position or replaces such Cer tificate, it may realize an unanticipated loss","page_number":57,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"62d333b4-dc22-4349-928e-be50fc31aa77","block_type":"box","text":"and incur transaction costs.","page_number":57,"box":{"x":69,"y":302,"width":197,"height":9}},{"id":"9e3d4067-7709-44e6-bbee-81eca629650b","block_type":"box","text":"Options on Swaps (“Swaptions”).","page_number":57,"box":{"x":102,"y":324,"width":235,"height":11}},{"id":"dae21dfe-3304-4da9-a591-220e5ba41813","block_type":"box","text":"A swaption gives a counterpar ty the option (but not the obligation) to enter into","page_number":57,"box":{"x":343,"y":325,"width":563,"height":11}},{"id":"062f1d38-f7dd-43cb-8fd3-c5a0e821ac92","block_type":"box","text":"a new swap agreement or to shor ten, extend, cancel or otherwise modify an existing swap agreement, at a","page_number":57,"box":{"x":69,"y":339,"width":763,"height":12}},{"id":"f27aae0c-768b-437e-92b6-3c1eec064dc0","block_type":"box","text":"designated future time on specified terms. A Fund may write (","page_number":57,"box":{"x":69,"y":355,"width":439,"height":11}},{"id":"e43968b7-691c-4d3f-acc3-87c60672977c","block_type":"box","text":"i.e.","page_number":57,"box":{"x":510,"y":355,"width":20,"height":9}},{"id":"69f3dd1a-a1d5-4916-ac39-8c224a8a929c","block_type":"box","text":", sell) and purchase put and call swaptions.","page_number":57,"box":{"x":533,"y":355,"width":309,"height":11}},{"id":"28448750-3213-4fb3-b987-d5935e11122c","block_type":"box","text":"Depending on the terms of the par ticular option agreement, a Fund will generally incur a greater degree of risk when","page_number":57,"box":{"x":70,"y":370,"width":826,"height":11}},{"id":"5deae6ef-a6a5-462a-b64c-8f4cd6aa79d4","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":57,"box":{"x":70,"y":385,"width":793,"height":11}},{"id":"672da846-7ae9-41f4-9615-6e4367ed5362","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":57,"box":{"x":70,"y":400,"width":802,"height":11}},{"id":"2d1890d2-bb2c-4655-bb44-3a2300672541","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":57,"box":{"x":68,"y":415,"width":836,"height":11}},{"id":"f7be6234-3101-48f5-afef-7f9c4d57f7d3","block_type":"box","text":"the underlying agreement and the potential for loss may be unlimited. Cer tain swaptions are permitted, although not","page_number":57,"box":{"x":68,"y":430,"width":832,"height":11}},{"id":"4289cda2-51f2-4bbb-b46f-06f54f10bbbf","block_type":"box","text":"required, to be cleared.","page_number":57,"box":{"x":69,"y":446,"width":165,"height":10}},{"id":"fff4d359-7bbd-4165-a9de-a5d9774c1528","block_type":"box","text":"A Fund will likely enter into these transactions to preserve a return or spread on a par ticular investment or","page_number":57,"box":{"x":101,"y":468,"width":760,"height":11}},{"id":"cc351970-1d29-4e4d-832f-f45faed739df","block_type":"box","text":"por tion of its por tfolio or to protect against any increase in the price of securities the Fund anticipates purchasing at","page_number":57,"box":{"x":70,"y":483,"width":830,"height":11}},{"id":"a7052ef3-08cc-41d5-83ad-406687070378","block_type":"box","text":"a later date. A Fund generally will use these transactions for hedging purposes, not for speculation.","page_number":57,"box":{"x":69,"y":498,"width":706,"height":11}},{"id":"454d6270-ff39-449f-a025-a89dfae66084","block_type":"box","text":"Swaptions may be subject to correlation risk, leverage risk, illiquidity risk and market risk. See “—Risk Factors in","page_number":57,"box":{"x":102,"y":521,"width":805,"height":11}},{"id":"414bcc22-4442-46ef-ad96-d94ecfabf253","block_type":"box","text":"Derivatives” above.","page_number":57,"box":{"x":70,"y":536,"width":135,"height":9}},{"id":"57fed62e-1694-4f51-bb6c-4743cb6a2b33","block_type":"box","text":"FLEX Options.","page_number":57,"box":{"x":102,"y":559,"width":96,"height":11}},{"id":"15e89ab7-1c72-421b-b5e2-3d4b2e94a081","block_type":"box","text":"FLEX Options are customized option contracts available through national securities exchanges that","page_number":57,"box":{"x":206,"y":559,"width":702,"height":11}},{"id":"e0dc8ca5-3efa-476b-b59e-d4b6d3314b70","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":57,"box":{"x":69,"y":574,"width":839,"height":11}},{"id":"90fcaa4d-7575-43f7-a4ab-1a28c4bad7dc","block_type":"box","text":"securities exchange. FLEX Options provide investors with the ability to customize assets referenced by the options,","page_number":57,"box":{"x":69,"y":589,"width":818,"height":11}},{"id":"17b4cef8-d6dd-4bf3-93d0-3ddeecb3f837","block_type":"box","text":"exercise prices, exercise styles (","page_number":57,"box":{"x":69,"y":604,"width":231,"height":11}},{"id":"f5537f98-4747-4a71-a572-bfe739a0a2d2","block_type":"box","text":"i.e.","page_number":57,"box":{"x":302,"y":604,"width":20,"height":9}},{"id":"217bc8a4-2a2d-404d-8e2c-300d69a6967c","block_type":"box","text":", American-style, exercisable any time prior to the expiration date, or European","page_number":57,"box":{"x":325,"y":604,"width":561,"height":11}},{"id":"69296cd8-884c-4ff9-bb18-ba916b34e3b3","block_type":"box","text":"style, exercisable only on the option expiration date) and expiration dates, while achieving price discovery in","page_number":57,"box":{"x":69,"y":619,"width":768,"height":11}},{"id":"ad53302d-cbf4-4be3-b7b2-b0fac57eb8f8","block_type":"box","text":"competitive, transparent auctions markets and avoiding the counterpar ty exposure of OTC options positions. Each","page_number":57,"box":{"x":69,"y":634,"width":812,"height":12}},{"id":"f6a9a187-be40-48df-9378-5ec12fd64091","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":57,"box":{"x":69,"y":649,"width":830,"height":11}},{"id":"193878cd-f632-41c3-99dc-ec64e0d441ff","block_type":"box","text":"reference asset at the strike price. A Fund’s por tfolio may include several types of FLEX Options, including both","page_number":57,"box":{"x":69,"y":664,"width":792,"height":12}},{"id":"ace46179-c7aa-483e-b067-a990ca7bea73","block_type":"box","text":"purchased and written put and call options (as fur ther described below). The FLEX Options are all European style","page_number":57,"box":{"x":70,"y":680,"width":802,"height":11}},{"id":"9f5d1274-9673-4d1f-a74c-e0f84d01394b","block_type":"box","text":"options, which means that they are exercisable at a predetermined specified price (the “strike price”) only on the","page_number":57,"box":{"x":69,"y":695,"width":806,"height":11}},{"id":"8b88d39d-f03f-4910-9db1-7aa904c529f3","block_type":"box","text":"FLEX Option’s expiration date.","page_number":57,"box":{"x":70,"y":710,"width":211,"height":11}},{"id":"6fe8a17c-a9c9-4884-af9a-d17ac1d32f8e","block_type":"box","text":"The OCC guarantees per formance by each of the counterpar ties to the FLEX Options, becoming the “buyer for","page_number":57,"box":{"x":101,"y":732,"width":783,"height":12}},{"id":"be30fdc1-ed98-4039-9921-148bdc0115ef","block_type":"box","text":"every seller and the seller for every buyer”, reducing counterpar ty risk for clearing members and options traders.","page_number":57,"box":{"x":69,"y":748,"width":802,"height":11}},{"id":"439e5ab1-2b99-4633-96f2-f60ec9ec004d","block_type":"box","text":"Although guaranteed for settlement by the OCC, FLEX Options are still subject to counterpar ty risk with the OCC and","page_number":57,"box":{"x":68,"y":763,"width":826,"height":11}},{"id":"cdb65713-e84e-4639-ad06-ab88c5bb51f8","block_type":"box","text":"subject to the risk that the OCC may fail to per form the settlement of the FLEX Options due to bankruptcy or other","page_number":57,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"c233942c-7884-43e3-b866-c0c9b5f7774a","block_type":"box","text":"adverse reasons. A Fund bears the risk that the OCC will be unable or unwilling to per form its obligations under the","page_number":57,"box":{"x":69,"y":793,"width":822,"height":11}},{"id":"8d28eb7a-6509-44f9-aa9a-2f6f4c7ea810","block_type":"box","text":"FLEX Options contracts.","page_number":57,"box":{"x":70,"y":808,"width":166,"height":11}},{"id":"4978019c-1342-46a3-9330-38debc683588","block_type":"box","text":"Subject to determination by the Securities Committee of the OCC, adjustments may be made to the FLEX","page_number":57,"box":{"x":102,"y":831,"width":748,"height":11}},{"id":"39a62cbb-007b-477b-8f04-468fceedc7e1","block_type":"box","text":"Options for cer tain events (collectively, “Corporate Actions”) specified in the OCC’s by-laws and rules: cer tain stock","page_number":57,"box":{"x":69,"y":846,"width":822,"height":11}},{"id":"f704660f-82dc-4c63-aea5-8e1442f00f2e","block_type":"box","text":"dividends or distributions, stock splits, reverse stock splits, rights offerings, distributions, reorganizations,","page_number":57,"box":{"x":69,"y":861,"width":759,"height":11}},{"id":"1f2e1146-56ff-4482-bf51-c17af8e7da02","block_type":"box","text":"recapitalizations, or reclassifications with respect to an underlying security, or a merger, consolidation, dissolution or","page_number":57,"box":{"x":69,"y":876,"width":833,"height":11}},{"id":"19d47ca3-9ff3-4895-a554-e076e215c0d6","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":57,"box":{"x":70,"y":891,"width":829,"height":12}},{"id":"f6e82ab3-95b8-4ebc-97a0-d7b6fc7ab5e2","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":57,"box":{"x":69,"y":906,"width":821,"height":12}},{"id":"6ac01914-2a15-492e-86e6-261829780bc2","block_type":"box","text":"II-22","page_number":57,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7850df2e-9892-4f19-81a4-2a7c645a01d9","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":57,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e501c0bd-ef10-4e8f-8f97-166d004cce4d","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":58,"box":{"x":68,"y":45,"width":835,"height":11}},{"id":"df27f613-2cf5-4e95-b25c-6abd0d0fcecc","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":58,"box":{"x":68,"y":60,"width":829,"height":11}},{"id":"14c471be-6d5d-4b1f-b217-3c3e292f3ca7","block_type":"box","text":"the affected options, the maintenance of a fair and orderly market in the affected options, consistency of","page_number":58,"box":{"x":68,"y":75,"width":753,"height":11}},{"id":"e354fc91-8680-4972-8f35-914ea489c572","block_type":"box","text":"interpretation and practice, efficiency of exercise settlement procedures, and the coordination with other clearing","page_number":58,"box":{"x":70,"y":90,"width":806,"height":11}},{"id":"3c34ace5-d866-494f-8792-b313c24189ea","block_type":"box","text":"agencies of the clearance and settlement of transactions in the underlying interest.","page_number":58,"box":{"x":69,"y":105,"width":593,"height":11}},{"id":"eeced6ab-f38c-4a33-83b2-961f3fabe51c","block_type":"box","text":"Cer tain Considerations Regarding Options","page_number":58,"box":{"x":135,"y":128,"width":298,"height":11}},{"id":"dd2ded3f-ca0d-4bd7-a6ec-5c64676775c8","block_type":"box","text":". The FLEX Options in which each Fund may invest will be options","page_number":58,"box":{"x":435,"y":128,"width":461,"height":11}},{"id":"34a7c737-18b5-409d-a1e2-d891732fe0db","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":58,"box":{"x":102,"y":143,"width":768,"height":11}},{"id":"21e45edc-81a0-4fc7-9a31-8f9cb0dede6b","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":58,"box":{"x":102,"y":158,"width":775,"height":11}},{"id":"08d7401e-f5c8-46d3-a4ec-473f646923e5","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":58,"box":{"x":102,"y":173,"width":777,"height":11}},{"id":"54e18e73-b57a-4f85-b486-5fe5aaa38a59","block_type":"box","text":"reflect, among other things, the time remaining until expiration (the end of the Outcome Period), the relationship","page_number":58,"box":{"x":102,"y":188,"width":799,"height":12}},{"id":"8b51ebe5-53db-44ea-bcd8-b3dbb0783a76","block_type":"box","text":"of the exercise price to the market price of the Reference Asset, and general market conditions. Options that","page_number":58,"box":{"x":102,"y":203,"width":777,"height":12}},{"id":"8335ca2e-dd31-4614-8d66-5e50503a4e24","block_type":"box","text":"expire unexercised have no value.","page_number":58,"box":{"x":101,"y":219,"width":240,"height":10}},{"id":"d62536d4-97b0-4e0e-8c15-5c8220f1b577","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":58,"box":{"x":134,"y":241,"width":747,"height":11}},{"id":"da405162-fb5f-43e9-8fba-80b1d13b1ac5","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":58,"box":{"x":101,"y":256,"width":792,"height":11}},{"id":"dc544a41-dc28-412d-8d02-e543c07ede28","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":58,"box":{"x":101,"y":271,"width":786,"height":12}},{"id":"da87651e-6126-4e88-b06e-813cb454e21a","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":58,"box":{"x":101,"y":286,"width":798,"height":12}},{"id":"7da70b7c-b8ed-4a73-b225-9ed1c07efe72","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":58,"box":{"x":102,"y":302,"width":802,"height":11}},{"id":"c5eea939-b653-49ed-86d6-6e6bab1a8940","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":58,"box":{"x":102,"y":317,"width":800,"height":11}},{"id":"3c874adf-6ea9-41a8-9c62-564ee07c9ea6","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":58,"box":{"x":102,"y":332,"width":774,"height":11}},{"id":"63b7843e-52d5-4840-8c8d-4f056d902731","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":58,"box":{"x":102,"y":347,"width":793,"height":11}},{"id":"09c34fba-d89c-4695-a362-a3a579cb3354","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":58,"box":{"x":102,"y":362,"width":764,"height":11}},{"id":"9d75c9f7-bc90-462d-ab8a-94e1fe539cf1","block_type":"box","text":"number of shares of the ETF in exchange for the strike price.","page_number":58,"box":{"x":102,"y":377,"width":430,"height":12}},{"id":"58830fd4-ac3a-47b0-b564-74c1185f9868","block_type":"box","text":"Although each Fund will generally utilize FLEX Options that are physically settled, a Fund may also utilize","page_number":58,"box":{"x":134,"y":400,"width":740,"height":11}},{"id":"5b158fe2-3cd1-4c58-bb1c-b2631ddb498d","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":58,"box":{"x":102,"y":415,"width":787,"height":11}},{"id":"15d302cf-b33b-4fc2-968a-239a1e13262c","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":58,"box":{"x":102,"y":430,"width":790,"height":11}},{"id":"4c9782e1-499a-4fd1-95c9-1e18e2045094","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":58,"box":{"x":102,"y":445,"width":793,"height":12}},{"id":"fececd5d-c4fb-469e-9248-476f32f63226","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":58,"box":{"x":102,"y":460,"width":802,"height":12}},{"id":"45f9851f-0884-4fa2-98ae-4b4735df48fb","block_type":"box","text":"multiple (“multiplier”), which determines the total value for each point of such difference.","page_number":58,"box":{"x":102,"y":475,"width":635,"height":12}},{"id":"97c8ccb1-a39c-4e26-bcc7-66b36c2431fb","block_type":"box","text":"Risks of Options on the Reference Assets","page_number":58,"box":{"x":135,"y":498,"width":297,"height":11}},{"id":"b2856245-2636-420d-85c4-ec8c1afbec7b","block_type":"box","text":". If a Fund has purchased an option and exercises it before the","page_number":58,"box":{"x":433,"y":498,"width":448,"height":11}},{"id":"07f06229-7e12-4ff2-a480-3cc25d725fe9","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":58,"box":{"x":101,"y":513,"width":777,"height":12}},{"id":"c0f76d81-6cf9-4db0-9ca4-4684092ca8bd","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":58,"box":{"x":101,"y":528,"width":753,"height":12}},{"id":"dba4a6e3-a6c7-4c1f-a1f1-efcb91ae7549","block_type":"box","text":"required to pay the difference between the closing Reference Asset value and the exercise price of the option","page_number":58,"box":{"x":102,"y":543,"width":780,"height":12}},{"id":"1f9aa32b-15c7-4bb4-a428-51b3a8f5fb3e","block_type":"box","text":"(times the applicable multiplier) to the assigned writer.","page_number":58,"box":{"x":102,"y":559,"width":387,"height":11}},{"id":"a019cf3d-4248-4819-9621-ac6db1da3889","block_type":"box","text":"Foreign Exchange Transactions.","page_number":58,"box":{"x":102,"y":582,"width":222,"height":11}},{"id":"ae88e60b-3747-4000-803a-f8701cbefc9b","block_type":"box","text":"A Fund may enter into spot foreign exchange transactions, forward foreign exchange transactions (“FX forwards”)","page_number":58,"box":{"x":101,"y":604,"width":807,"height":11}},{"id":"f314f0cc-fdfa-44ec-a8f2-bd0a100dcdaa","block_type":"box","text":"and currency swaps, purchase and sell currency options, currency futures and related options thereon (collectively,","page_number":58,"box":{"x":69,"y":619,"width":818,"height":11}},{"id":"7cb2c453-5a09-4e22-9958-0350b5d7d467","block_type":"box","text":"“Currency Instruments”) for purposes of hedging against the decline in the value of currencies in which its por tfolio","page_number":58,"box":{"x":70,"y":634,"width":821,"height":12}},{"id":"f7211b4c-a02c-46a5-938f-9db8454c6034","block_type":"box","text":"holdings are denominated against the U.S. dollar or, with respect to cer tain Funds, to seek to enhance returns.","page_number":58,"box":{"x":69,"y":649,"width":792,"height":12}},{"id":"30734089-ba0a-44ac-ae62-26b3c5f57b37","block_type":"box","text":"Such transactions could be effected to hedge with respect to foreign dollar denominated securities owned by a","page_number":58,"box":{"x":102,"y":672,"width":790,"height":11}},{"id":"7010a5ae-a085-467d-a1c2-21777efdc245","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":58,"box":{"x":70,"y":687,"width":830,"height":11}},{"id":"358aa027-e9f4-4f7a-8998-ba7a33326a2e","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":58,"box":{"x":69,"y":702,"width":808,"height":12}},{"id":"ebbb22e3-bd00-4959-98c6-a12e7a3602a9","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":58,"box":{"x":69,"y":717,"width":824,"height":12}},{"id":"01aef898-94c6-4e48-a180-679434b30795","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":58,"box":{"x":68,"y":732,"width":823,"height":12}},{"id":"8654a913-5627-4c1f-bec3-c8c5590b8731","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":58,"box":{"x":68,"y":748,"width":821,"height":11}},{"id":"17f9c9b9-3381-4c24-900b-51ec59a121f0","block_type":"box","text":"par t, the cost of acquiring such a put option, the Fund may also sell a call option which, if exercised, requires it to","page_number":58,"box":{"x":70,"y":763,"width":813,"height":11}},{"id":"fe0cf3f4-ce1d-4b86-aa29-0935c31f5b9a","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":58,"box":{"x":69,"y":778,"width":813,"height":11}},{"id":"b969830e-110e-45ea-b7ae-c52ccc16fb03","block_type":"box","text":"selling such a call option in this illustration, the Fund gives up the oppor tunity to profit without limit from increases in","page_number":58,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"51ae8320-8ec0-4cd6-9f58-3d2a32045c7f","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":58,"box":{"x":68,"y":808,"width":836,"height":11}},{"id":"e4de53c3-99ef-48b1-8390-374489c356af","block_type":"box","text":"transactions. Cer tain Funds have a fundamental investment restriction that restricts currency option strategies.","page_number":58,"box":{"x":68,"y":823,"width":794,"height":12}},{"id":"4d22153a-357d-49e4-9219-ca6f1ec848c7","block_type":"box","text":"Hedging transactions involving Currency Instruments involve substantial risks, including correlation risk. A Fund’s","page_number":58,"box":{"x":102,"y":846,"width":805,"height":11}},{"id":"ef84baad-0d17-472a-aa83-7a180e5418d9","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":58,"box":{"x":69,"y":861,"width":828,"height":11}},{"id":"4f58c6cb-f806-4a91-8d2b-fb14bf3d2176","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":58,"box":{"x":69,"y":876,"width":819,"height":11}},{"id":"6e59dae0-251e-4956-bd78-3d40c1767f50","block_type":"box","text":"Moreover, although Currency Instruments will be used with the intention of hedging against adverse currency","page_number":58,"box":{"x":70,"y":891,"width":773,"height":12}},{"id":"f46d2e51-c094-45a2-a003-858982e6eee7","block_type":"box","text":"movements, transactions in Currency Instruments involve the risk that anticipated currency movements will not be","page_number":58,"box":{"x":69,"y":906,"width":814,"height":12}},{"id":"4bf36239-b3d8-48f2-95ce-54df4711353e","block_type":"box","text":"II-23","page_number":58,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"94c3015e-370e-4e6e-88d9-f85dd813561d","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":58,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"60cb8a94-cc6e-4eec-91b3-ea2410e2ec09","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":59,"box":{"x":69,"y":45,"width":796,"height":11}},{"id":"a4680db5-6678-4950-8753-4f9e5d4f3967","block_type":"box","text":"against anticipated currency movements that do not occur, the Fund may realize losses and decrease its total return.","page_number":59,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"a9ba4d2b-d62d-41c4-8d30-5fafb6d0b386","block_type":"box","text":"Fur thermore, a Fund will only engage in hedging activities from time to time and may not be engaging in hedging","page_number":59,"box":{"x":70,"y":75,"width":798,"height":11}},{"id":"c9ce577f-0222-4bc5-b194-edbd6a57cd85","block_type":"box","text":"activities when movements in currency exchange rates actually occur.","page_number":59,"box":{"x":69,"y":90,"width":493,"height":11}},{"id":"7181df8f-b574-4229-a685-55784f3841a2","block_type":"box","text":"In connection with its trading in forward foreign currency contracts, a Fund will contract with a foreign or","page_number":59,"box":{"x":102,"y":113,"width":738,"height":11}},{"id":"507011c8-8084-4e87-ba3c-e3f9f973e865","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":59,"box":{"x":69,"y":128,"width":814,"height":11}},{"id":"d371d236-89dc-4e2b-af91-bbc9ce333574","block_type":"box","text":"par ticular currency. There are no limitations on daily price moves in such forward contracts, and banks and dealers","page_number":59,"box":{"x":70,"y":143,"width":819,"height":11}},{"id":"25cc6ff6-6f84-4945-b5bd-ec189680ffb6","block_type":"box","text":"are not required to continue to make markets in such contracts. There have been periods during which cer tain banks","page_number":59,"box":{"x":69,"y":158,"width":834,"height":11}},{"id":"3bcd10a5-7ead-4586-8949-5110148672d1","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":59,"box":{"x":69,"y":173,"width":797,"height":11}},{"id":"6471b1b7-4832-45d2-babe-10093558ce79","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":59,"box":{"x":69,"y":188,"width":794,"height":11}},{"id":"95d88965-014c-4250-b0dd-95df7f851e4e","block_type":"box","text":"Governmental imposition of currency controls might limit any such forward contract trading. With respect to its trading","page_number":59,"box":{"x":69,"y":203,"width":841,"height":12}},{"id":"146a6b0b-2df7-4e17-94b4-1b6c1fb65fc4","block_type":"box","text":"of forward contracts, if any, a Fund will be subject to counterpar ty risk. Any such failure to per form by a counterpar ty","page_number":59,"box":{"x":69,"y":218,"width":831,"height":12}},{"id":"2f1b4d7d-20c5-4ddc-b454-7096edfd2eff","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":59,"box":{"x":68,"y":234,"width":805,"height":11}},{"id":"e0163e3b-a6b8-4986-8588-686180f91a01","block_type":"box","text":"then market price and could result in a loss to the Fund.","page_number":59,"box":{"x":68,"y":249,"width":401,"height":11}},{"id":"17550e08-7793-446b-9c8f-0cd6f26350a9","block_type":"box","text":"It may not be possible for a Fund to hedge against currency exchange rate movements, even if correctly","page_number":59,"box":{"x":102,"y":271,"width":738,"height":12}},{"id":"277195ed-db6d-48e4-ae59-190d8ae7a32c","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":59,"box":{"x":69,"y":287,"width":837,"height":11}},{"id":"7ef97a8a-acb8-4bb3-8dab-b0569a33208d","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":59,"box":{"x":69,"y":302,"width":837,"height":11}},{"id":"129deeb7-1459-431d-a667-787431be4d10","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":59,"box":{"x":69,"y":317,"width":800,"height":11}},{"id":"c9e655c6-4eff-4f4f-a3d4-59c156ec1ac6","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":59,"box":{"x":68,"y":332,"width":829,"height":11}},{"id":"d1584b70-6b57-4066-a9bb-61ce8dc2eaeb","block_type":"box","text":"the currencies involved, the length of the contract period and the market conditions then prevailing. Since","page_number":59,"box":{"x":68,"y":347,"width":753,"height":11}},{"id":"55d07305-b471-4d98-a6cb-a910d6bf2a21","block_type":"box","text":"transactions in foreign currency exchange usually are conducted on a principal basis, no fees or commissions are","page_number":59,"box":{"x":68,"y":362,"width":811,"height":11}},{"id":"3689bc8f-33d8-40bb-9c55-aedeeeda1e37","block_type":"box","text":"involved.","page_number":59,"box":{"x":70,"y":377,"width":59,"height":9}},{"id":"e607a67b-ccf5-4def-90f6-f58d49a9885d","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":59,"box":{"x":101,"y":400,"width":803,"height":11}},{"id":"91e69849-8f68-4892-883d-ea608466993d","block_type":"box","text":"receivables for unsettled securities sales), or has committed to purchase or anticipates purchasing, which are","page_number":59,"box":{"x":69,"y":415,"width":785,"height":11}},{"id":"5a9c13e5-31ee-464a-9c06-334c20743ab4","block_type":"box","text":"denominated in such currency.","page_number":59,"box":{"x":69,"y":430,"width":216,"height":11}},{"id":"711968e4-12f4-4bc5-83cd-5ad414348bbd","block_type":"box","text":"Spot Transactions and FX Forwards.","page_number":59,"box":{"x":102,"y":453,"width":254,"height":11}},{"id":"e9de2e56-32ce-422b-80fc-6868907b7aa8","block_type":"box","text":"FX forwards are OTC contracts to purchase or sell a specified amount of a","page_number":59,"box":{"x":364,"y":453,"width":527,"height":11}},{"id":"55432c91-54c2-472e-b348-db6d1d62b267","block_type":"box","text":"specified currency or multinational currency unit at a specified price and specified future date. Spot foreign exchange","page_number":59,"box":{"x":69,"y":468,"width":834,"height":11}},{"id":"3d4153e7-b105-457f-9eed-95930c4e4e72","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":59,"box":{"x":68,"y":483,"width":798,"height":11}},{"id":"746201f8-2adf-4e8e-b1ff-0f7afdeecabd","block_type":"box","text":"transactions for purposes of hedging either a specific transaction or a por tfolio position, or, with respect to cer tain","page_number":59,"box":{"x":68,"y":498,"width":817,"height":11}},{"id":"ad3e06ae-28c8-4b39-a3aa-b736a6163e8a","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":59,"box":{"x":70,"y":513,"width":830,"height":11}},{"id":"b8683f4d-7f86-4acc-9f71-53fda49f6527","block_type":"box","text":"may enter into a foreign exchange transaction for purposes of hedging a specific transaction by, for example,","page_number":59,"box":{"x":69,"y":528,"width":774,"height":12}},{"id":"42f6c476-ee72-49b1-9f12-2318823d563f","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":59,"box":{"x":70,"y":544,"width":828,"height":11}},{"id":"9786ba8d-4b3f-45d3-974e-14340d4b3978","block_type":"box","text":"anticipates receiving a dividend or distribution. A Fund may enter into a foreign exchange transaction for purposes of","page_number":59,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"0a4256f5-746c-4d09-b8e3-9d7d4363c2ac","block_type":"box","text":"hedging a por tfolio position by selling forward a currency in which a por tfolio position of the Fund is denominated or","page_number":59,"box":{"x":69,"y":574,"width":826,"height":11}},{"id":"33b7f6ce-18a7-4b06-a71b-ac39d0ee1804","block_type":"box","text":"by purchasing a currency in which the Fund anticipates acquiring a por tfolio position in the near future. A Fund may","page_number":59,"box":{"x":69,"y":589,"width":819,"height":11}},{"id":"34141056-4251-4858-b206-de105613f4b4","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":59,"box":{"x":69,"y":604,"width":822,"height":11}},{"id":"a2e11ead-a6b0-41b9-95de-50836373e0c6","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":59,"box":{"x":68,"y":619,"width":819,"height":11}},{"id":"6960315c-b114-444e-88fc-8b55240c7159","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":59,"box":{"x":69,"y":634,"width":814,"height":12}},{"id":"ae65a150-ce90-4a9f-a5f2-0daba6c9b3bb","block_type":"box","text":"currency being hedged, and (ii) executing a cross-hedge through the currency in which the cross-hedge is","page_number":59,"box":{"x":69,"y":650,"width":745,"height":11}},{"id":"1a94e2c2-1ac9-479a-8f13-74aa6702b385","block_type":"box","text":"denominated will be significantly more cost-effective or provide substantially greater liquidity than executing a similar","page_number":59,"box":{"x":69,"y":664,"width":832,"height":12}},{"id":"c1d9388b-84cc-45d1-9b01-40bcbaedee87","block_type":"box","text":"hedging transaction by means of the currency being hedged.","page_number":59,"box":{"x":69,"y":680,"width":428,"height":11}},{"id":"fb7874cf-6f4a-4590-9214-f350f812f7b1","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":59,"box":{"x":101,"y":702,"width":797,"height":12}},{"id":"d56dd315-e249-416f-8308-1d35b0880cbc","block_type":"box","text":"of existing or anticipated holdings of por tfolio securities. Proxy hedging is often used when the currency to which the","page_number":59,"box":{"x":69,"y":717,"width":829,"height":12}},{"id":"8c2c9da3-ef07-4567-a6cf-bef4ad2b50d4","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":59,"box":{"x":70,"y":732,"width":838,"height":12}},{"id":"e8364ab0-ef89-46de-9fd9-f2f5df5af486","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":59,"box":{"x":69,"y":748,"width":823,"height":11}},{"id":"46bffa90-0f1c-49ad-a9c9-20a7eff4bbc7","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":59,"box":{"x":70,"y":763,"width":827,"height":11}},{"id":"4db906cb-d3ca-4a15-b8b5-c871d933a9e5","block_type":"box","text":"hedging involves some of the same risks and considerations as other transactions with similar instruments. Currency","page_number":59,"box":{"x":69,"y":778,"width":838,"height":11}},{"id":"33fe41cf-d3ac-465a-96bd-c654eff701f3","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":59,"box":{"x":68,"y":793,"width":798,"height":11}},{"id":"81371cdc-12c2-4308-a58a-49c322065e43","block_type":"box","text":"direction that is not anticipated. In addition, there is the risk that the perceived linkage between various currencies","page_number":59,"box":{"x":69,"y":808,"width":819,"height":11}},{"id":"1ffe3890-eb39-4f39-bf33-6a865af16257","block_type":"box","text":"may not be present, including during the par ticular time that a Fund is engaging in proxy hedging.","page_number":59,"box":{"x":69,"y":823,"width":691,"height":12}},{"id":"bab7cdc0-d87e-4a62-8536-8fa4bd69e22f","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":59,"box":{"x":101,"y":846,"width":785,"height":11}},{"id":"9217a249-c76c-4ef1-97cf-1f919d7e55d9","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":59,"box":{"x":69,"y":861,"width":811,"height":11}},{"id":"bb4be912-475d-4d06-bcc0-1175d683e505","block_type":"box","text":"have por tfolio exposure. For example, a Fund may hold both Canadian government bonds and Japanese government","page_number":59,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"f4e1fa49-86e4-41e6-9d14-043c63b7afd1","block_type":"box","text":"bonds, and the Manager or sub-adviser may believe that Canadian dollars will deteriorate against Japanese yen. The","page_number":59,"box":{"x":69,"y":891,"width":829,"height":12}},{"id":"e71a1f64-c7fc-4efd-9392-5db227ab8cd4","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":59,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"3182ebee-fdbd-40f8-b38f-bcbfa09a95b7","block_type":"box","text":"II-24","page_number":59,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"dd9872f9-9452-4742-a2e0-c4ac9657a27e","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":59,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"225ca761-34b9-465f-845e-f033d493b782","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":60,"box":{"x":69,"y":45,"width":818,"height":11}},{"id":"10ed82e5-a3a5-4368-b23a-0da03bb3ede5","block_type":"box","text":"value of the Japanese yen relative to the U.S. dollar.","page_number":60,"box":{"x":68,"y":60,"width":372,"height":11}},{"id":"3f23215b-9eb9-49ba-95f2-8fddb8f9e431","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":60,"box":{"x":102,"y":82,"width":768,"height":12}},{"id":"c7718270-1d34-4ca4-8a0b-4b781dc71fc9","block_type":"box","text":"forwards (“NDFs”). NDFs are cash-settled, shor t-term forward contracts that may be thinly traded or are denominated","page_number":60,"box":{"x":68,"y":98,"width":838,"height":11}},{"id":"14b0a71e-bcce-4254-9238-8efa644701e4","block_type":"box","text":"in non-conver tible foreign currency, where the profit or loss at the time at the settlement date is calculated by taking","page_number":60,"box":{"x":70,"y":113,"width":829,"height":11}},{"id":"852f558e-154f-4e78-9ca0-9e2757d07a55","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":60,"box":{"x":68,"y":128,"width":806,"height":11}},{"id":"9e648c58-41d3-4727-a935-0f8a6905a223","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":60,"box":{"x":69,"y":143,"width":839,"height":11}},{"id":"88337474-c04a-45dd-ad77-2a526bc9f16a","block_type":"box","text":"the difference between the prevailing market exchange rate and the agreed upon exchange rate is calculated. The","page_number":60,"box":{"x":68,"y":158,"width":812,"height":11}},{"id":"9722f23b-0ac2-4195-9c02-c72bfcaf53aa","block_type":"box","text":"settlement date is the date by which the payment of the difference is due to the par ty receiving payment. NDFs are","page_number":60,"box":{"x":69,"y":173,"width":821,"height":11}},{"id":"a2f9f70f-8fac-4a3c-a2a8-35e107d03d07","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":60,"box":{"x":69,"y":188,"width":835,"height":11}},{"id":"930a55b3-57d5-40c0-856a-bc39b10bcc46","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":60,"box":{"x":68,"y":203,"width":802,"height":12}},{"id":"6e3aae07-764c-4a63-a3d0-f0276b4e7cf4","block_type":"box","text":"traded.","page_number":60,"box":{"x":68,"y":219,"width":49,"height":8}},{"id":"fdad26e8-330f-472e-9522-69aa612fa3ce","block_type":"box","text":"Currency Futures.","page_number":60,"box":{"x":102,"y":241,"width":123,"height":11}},{"id":"ef670f66-bb3d-4e42-b48f-2571fffbf79a","block_type":"box","text":"A Fund may seek to enhance returns or hedge against the decline in the value of a currency","page_number":60,"box":{"x":232,"y":241,"width":654,"height":11}},{"id":"a6dd5fbf-e542-472c-b4af-3546dcba13a0","block_type":"box","text":"through use of currency futures or options on currency futures. Currency futures are similar to forward foreign","page_number":60,"box":{"x":68,"y":256,"width":782,"height":12}},{"id":"658238ab-b2dd-4dad-a018-7cb40d16da7f","block_type":"box","text":"exchange transactions except that futures are standardized, exchange-traded contracts while forward foreign","page_number":60,"box":{"x":69,"y":271,"width":774,"height":12}},{"id":"8e891d79-abb9-4209-ba38-bca947fbd54e","block_type":"box","text":"exchange transactions are traded in the OTC market. Currency futures involve substantial currency risk as well as the","page_number":60,"box":{"x":69,"y":286,"width":836,"height":12}},{"id":"97176c74-d245-41d7-9d15-b8b21265ad4d","block_type":"box","text":"risks discussed above in “—Futures.”","page_number":60,"box":{"x":69,"y":302,"width":269,"height":9}},{"id":"115f2993-4a74-4195-8b5d-6e84d1e3c583","block_type":"box","text":"Currency Options.","page_number":60,"box":{"x":102,"y":324,"width":125,"height":11}},{"id":"1bd86755-817a-4d73-be9a-b3b9ef5a075c","block_type":"box","text":"A Fund may seek to enhance returns or hedge against the decline in the value of a currency","page_number":60,"box":{"x":233,"y":324,"width":654,"height":12}},{"id":"29b72f36-66dc-4b11-9fca-016da9efa5c3","block_type":"box","text":"through the use of currency options. Cer tain Funds have fundamental investment restrictions that permit the","page_number":60,"box":{"x":68,"y":339,"width":776,"height":12}},{"id":"02a78064-2d70-427c-a389-cb57cc12e755","block_type":"box","text":"purchase of currency options, but prohibit the writing of currency options. Currency options are similar to options on","page_number":60,"box":{"x":70,"y":355,"width":825,"height":11}},{"id":"1d314863-5afe-4594-bb8b-f29665f52373","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":60,"box":{"x":69,"y":370,"width":827,"height":11}},{"id":"ace48907-b944-4cef-aaba-04110927ffba","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":60,"box":{"x":68,"y":385,"width":820,"height":11}},{"id":"3764842a-b6ea-427e-a725-8e62db45d6cb","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":60,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"8a93b6b1-a3b6-4802-a45c-8ab88835386b","block_type":"box","text":"on currencies either on exchanges or OTC markets. Such transactions in options may include exotic options on","page_number":60,"box":{"x":69,"y":415,"width":790,"height":11}},{"id":"be841511-eb0c-4019-8b14-c5655a09a0d0","block_type":"box","text":"currencies, which are typically traded in OTC markets and have additional features that result in different payment","page_number":60,"box":{"x":69,"y":430,"width":813,"height":11}},{"id":"bcc78c05-1523-4b25-a523-89963c6bc316","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":60,"box":{"x":69,"y":446,"width":826,"height":10}},{"id":"e416df3f-f69b-4842-b04a-14dbb48775dc","block_type":"box","text":"on up to 100% of the currencies in its por tfolio. See “—Options” above. Currency options involve substantial","page_number":60,"box":{"x":69,"y":460,"width":776,"height":12}},{"id":"74dac617-df56-46d7-ab19-18282edc7297","block_type":"box","text":"currency risk, and may also involve credit, leverage or illiquidity risk.","page_number":60,"box":{"x":69,"y":476,"width":483,"height":11}},{"id":"f539684b-751a-41c3-93c5-8eab26fd403a","block_type":"box","text":"Currency Swaps.","page_number":60,"box":{"x":102,"y":498,"width":117,"height":11}},{"id":"5179b126-4582-4b71-8e7e-f6c3f3113f79","block_type":"box","text":"A Fund may enter into currency swaps in order to protect against currency fluctuations or to","page_number":60,"box":{"x":225,"y":498,"width":652,"height":11}},{"id":"b28d7b74-96bf-4342-8310-e17f108bff6e","block_type":"box","text":"hedge por tfolio positions. Currency swaps are transactions in which one currency is simultaneously bought for a","page_number":60,"box":{"x":69,"y":513,"width":799,"height":12}},{"id":"a8ac1e20-da89-4f26-9167-47ea5da1cca6","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":60,"box":{"x":69,"y":528,"width":812,"height":12}},{"id":"4436e74e-1b79-4b3c-8a0b-a5e4d904659b","block_type":"box","text":"exchange of the rights of a Fund and another par ty to make or receive payments in specified currencies, and typically","page_number":60,"box":{"x":69,"y":543,"width":836,"height":12}},{"id":"9e8f45a4-f986-47ea-a056-f31a388a7213","block_type":"box","text":"require the delivery of the entire principal value of one designated currency in exchange for the other designated","page_number":60,"box":{"x":69,"y":559,"width":800,"height":11}},{"id":"1666ebd0-9139-41d2-b06f-b9d808a8e4e7","block_type":"box","text":"currency. As a result, the entire principal value of a currency swap is subject to the risk that the other par ty to the","page_number":60,"box":{"x":69,"y":574,"width":810,"height":11}},{"id":"b9236bd8-320d-4225-a5d6-939b91322fc5","block_type":"box","text":"swap will default on its contractual delivery obligations.","page_number":60,"box":{"x":69,"y":589,"width":393,"height":11}},{"id":"6876c5bc-29a1-49ea-aebd-c80c522ab28c","block_type":"box","text":"Distressed Securities.","page_number":60,"box":{"x":102,"y":612,"width":159,"height":9}},{"id":"910b367c-6fcf-47ec-8965-93617fdb70ef","block_type":"box","text":"A Fund may invest in securities, including loans purchased in the secondary market, that","page_number":60,"box":{"x":267,"y":612,"width":633,"height":11}},{"id":"eac20ea1-bb7f-43ff-bf59-dd25dbe650b1","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":60,"box":{"x":69,"y":627,"width":834,"height":11}},{"id":"8f287ed6-0f06-45df-b4c5-4128aeed1146","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":60,"box":{"x":70,"y":642,"width":827,"height":11}},{"id":"9f11bb68-1f08-4d04-a0ff-f4a3563d10ea","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":60,"box":{"x":69,"y":657,"width":835,"height":11}},{"id":"a06c03c9-d428-4ab2-9dc4-7841c938a99c","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":60,"box":{"x":69,"y":672,"width":784,"height":11}},{"id":"ecda3711-798d-418f-a793-250a70f9667b","block_type":"box","text":"Investment in Distressed Securities is speculative and involves significant risks.","page_number":60,"box":{"x":70,"y":687,"width":569,"height":11}},{"id":"ebd27d79-80f4-4077-98aa-1055f81e4705","block_type":"box","text":"A Fund will generally make such investments only when the Manager believes it is reasonably likely that the","page_number":60,"box":{"x":101,"y":710,"width":766,"height":11}},{"id":"35e95f19-521d-4965-9930-24dc4f4b0118","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":60,"box":{"x":70,"y":725,"width":795,"height":11}},{"id":"92251975-3500-4c93-ba92-cfc353c5fa05","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":60,"box":{"x":70,"y":740,"width":826,"height":11}},{"id":"c31ba93d-b72b-4034-996d-b86519375553","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":60,"box":{"x":69,"y":755,"width":794,"height":11}},{"id":"7b018477-5d92-46b9-9a88-35a745dd98c7","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":60,"box":{"x":69,"y":770,"width":832,"height":12}},{"id":"ebe8c17a-226f-4323-accc-f860ad034b41","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":60,"box":{"x":69,"y":785,"width":824,"height":12}},{"id":"2e6799ce-c12b-484e-9dca-45c687e91eff","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":60,"box":{"x":69,"y":801,"width":789,"height":11}},{"id":"4851e0b7-fe24-4d45-a43b-a9cd4472a1a6","block_type":"box","text":"significant uncer tainty as to whether or not the exchange offer or plan of reorganization will be completed and the","page_number":60,"box":{"x":69,"y":816,"width":810,"height":11}},{"id":"00e64859-ba7b-4ef5-935a-1bb80265e4c8","block_type":"box","text":"Fund may be required to bear cer tain extraordinary expenses to protect and recover its investment. Therefore, to the","page_number":60,"box":{"x":70,"y":831,"width":831,"height":11}},{"id":"112e4c45-bc9c-462b-a615-47845df73cce","block_type":"box","text":"extent the Fund seeks capital appreciation through investment in distressed securities, the Fund’s ability to achieve","page_number":60,"box":{"x":69,"y":846,"width":826,"height":11}},{"id":"dffbb06d-2316-46db-8494-32c881d8a89b","block_type":"box","text":"current income for its shareholders may be diminished. The Fund also will be subject to significant uncer tainty as to","page_number":60,"box":{"x":69,"y":861,"width":827,"height":11}},{"id":"e1a0f149-701a-49ff-a322-3678687d457b","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":60,"box":{"x":68,"y":876,"width":834,"height":11}},{"id":"f514cd3f-ae21-472a-949d-15f4584c707d","block_type":"box","text":"satisfied (","page_number":60,"box":{"x":69,"y":891,"width":70,"height":11}},{"id":"e1d47b8f-f170-4a1d-bf83-93d84b09ba72","block_type":"box","text":"e.g.","page_number":60,"box":{"x":140,"y":893,"width":25,"height":10}},{"id":"fe5142f7-93f8-47a2-94c3-9b5a8ca1c3a6","block_type":"box","text":", through a liquidation of the obligor’s assets, an exchange offer or plan of reorganization involving the","page_number":60,"box":{"x":168,"y":891,"width":729,"height":12}},{"id":"20721df6-151d-4da6-b9c3-a7ba001c7951","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":60,"box":{"x":69,"y":906,"width":807,"height":12}},{"id":"7d95910a-6a2d-4b10-b8ec-18b416bcb190","block_type":"box","text":"II-25","page_number":60,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"635c0658-f949-48d4-aa13-4a54150d6145","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":60,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d96bd162-83ec-455b-8802-d4c0a67c52d6","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":61,"box":{"x":69,"y":45,"width":797,"height":11}},{"id":"f75284ed-f854-4ee6-8582-d5972cde978b","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":61,"box":{"x":69,"y":60,"width":816,"height":11}},{"id":"3880e0e6-204c-430c-99c0-fc0d10946e23","block_type":"box","text":"reorganization will not have a lower value or income potential than may have been anticipated when the investment","page_number":61,"box":{"x":69,"y":75,"width":821,"height":11}},{"id":"8ad2ab80-fe9d-4e21-aaf3-e2dbc9345264","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":61,"box":{"x":68,"y":90,"width":827,"height":11}},{"id":"85d54946-12cb-49ae-867a-c8ecc02392dc","block_type":"box","text":"reorganization may be restricted as to resale. Similarly, if a Fund par ticipates in negotiations with respect to any","page_number":61,"box":{"x":69,"y":105,"width":800,"height":11}},{"id":"b76eaea9-9960-48d0-8583-0d9c348de8cd","block_type":"box","text":"exchange offer or plan of reorganization with respect to an issuer of Distressed Securities, the Fund may be","page_number":61,"box":{"x":69,"y":120,"width":770,"height":12}},{"id":"252c5a38-3219-46b1-a297-852770c8d3c8","block_type":"box","text":"restricted from disposing of such securities. To the extent that a Fund becomes involved in such proceedings, the","page_number":61,"box":{"x":69,"y":135,"width":809,"height":12}},{"id":"f0ae67f4-f4db-43c1-90ea-5fd72af314a4","block_type":"box","text":"Fund may have a more active par ticipation in the affairs of the issuer than that assumed generally by an investor. The","page_number":61,"box":{"x":70,"y":150,"width":839,"height":12}},{"id":"176307c1-8ece-4872-a985-6a99cc9d087e","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":61,"box":{"x":70,"y":166,"width":787,"height":11}},{"id":"49489ec8-ae05-48ff-a453-3b46e34e27de","block_type":"box","text":"affairs.","page_number":61,"box":{"x":69,"y":181,"width":49,"height":9}},{"id":"2f9b8054-3f87-421e-b894-f79773eb5589","block_type":"box","text":"Environmental, Social and Governance (“ESG”) Integration","page_number":61,"box":{"x":102,"y":203,"width":428,"height":11}},{"id":"1f78ff0a-0fee-4f49-ad1f-eb5902e87505","block_type":"box","text":". Although a Fund does not seek to implement a","page_number":61,"box":{"x":531,"y":204,"width":341,"height":11}},{"id":"dcad19da-f1a0-416a-a157-9cc3385755ba","block_type":"box","text":"specific sustainability objective, strategy or process unless disclosed in its Prospectus, Fund management will","page_number":61,"box":{"x":69,"y":218,"width":785,"height":12}},{"id":"cce3f8a1-9561-4c95-bd32-cc7e0e02d5e6","block_type":"box","text":"consider ESG factors as par t of the investment process for the Fund. Fund management views ESG integration as the","page_number":61,"box":{"x":69,"y":234,"width":838,"height":11}},{"id":"82badfb5-a894-4588-86f8-f668c5ba8c34","block_type":"box","text":"practice of incorporating financially material ESG data or information into investment processes with the objective of","page_number":61,"box":{"x":70,"y":249,"width":827,"height":11}},{"id":"6138805a-7a44-4fb7-868d-abd40bf62afd","block_type":"box","text":"enhancing risk-adjusted returns. These ESG considerations will vary depending on a Fund’s par ticular investment","page_number":61,"box":{"x":69,"y":264,"width":806,"height":11}},{"id":"5523dce5-6d4f-45e1-b383-7bb04835ff9c","block_type":"box","text":"strategies and may include consideration of third-par ty research as well as consideration of proprietary BlackRock","page_number":61,"box":{"x":69,"y":279,"width":812,"height":11}},{"id":"88e8c478-9abc-4eee-80b7-da98c033991e","block_type":"box","text":"research across the ESG risks and oppor tunities regarding an issuer. The ESG characteristics utilized in a Fund’s","page_number":61,"box":{"x":69,"y":294,"width":807,"height":11}},{"id":"c7182fe6-0205-44e6-af89-8676d325e4e1","block_type":"box","text":"investment process are anticipated to evolve over time and one or more characteristics may not be relevant with","page_number":61,"box":{"x":70,"y":309,"width":800,"height":11}},{"id":"d815c026-0d01-441e-8f1c-5a5f0dcae21d","block_type":"box","text":"respect to all issuers that are eligible for investment.","page_number":61,"box":{"x":69,"y":324,"width":377,"height":12}},{"id":"5cbdcf00-55a5-44e5-b440-ce2c2aa2c930","block_type":"box","text":"Cer tain of these considerations may affect a Fund’s exposure to cer tain companies or industries. While Fund","page_number":61,"box":{"x":102,"y":347,"width":778,"height":11}},{"id":"3de75a21-1922-483d-982b-c71b887fd3a8","block_type":"box","text":"management views ESG considerations as having the potential to contribute to a Fund’s long-term per formance,","page_number":61,"box":{"x":69,"y":362,"width":800,"height":11}},{"id":"193e157f-cd0a-4baf-8ba8-b84477b56ce0","block_type":"box","text":"there is no guarantee that such results will be achieved.","page_number":61,"box":{"x":68,"y":377,"width":400,"height":12}},{"id":"72b57be3-0105-4c8d-9f55-caae284c6dd3","block_type":"box","text":"Equity Securities.","page_number":61,"box":{"x":102,"y":400,"width":127,"height":11}},{"id":"6ee1eb4a-b0b1-48c9-83ce-3db137836a4b","block_type":"box","text":"Cer tain Funds may invest in equity securities, which include common stock and, for cer tain","page_number":61,"box":{"x":235,"y":400,"width":648,"height":11}},{"id":"c0706b7f-3d1f-4f24-9a19-d70603eb0794","block_type":"box","text":"Funds, preferred stock (including conver tible preferred stock); bonds, stock purchase warrants and rights; equity","page_number":61,"box":{"x":70,"y":415,"width":802,"height":11}},{"id":"22a80d97-069d-4e9a-bb51-ca745a9ab82e","block_type":"box","text":"interests in trusts; general and limited par tnerships and limited liability companies; and depositary receipts. Stock","page_number":61,"box":{"x":70,"y":430,"width":817,"height":11}},{"id":"dbaefa8b-03fa-40f5-9387-a30805acd381","block_type":"box","text":"markets are volatile. The price of equity securities will fluctuate and can decline and reduce the value of a por tfolio","page_number":61,"box":{"x":69,"y":445,"width":819,"height":11}},{"id":"f0297b04-d0f2-4ae8-837f-b1f9e78459d5","block_type":"box","text":"investing in equities. The price of equity securities fluctuates based on changes in a company’s financial condition","page_number":61,"box":{"x":70,"y":460,"width":813,"height":12}},{"id":"6e2759c9-7a39-4749-8304-adf9a9c5cd37","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":61,"box":{"x":69,"y":475,"width":839,"height":12}},{"id":"98a0d952-292f-4ac7-9d5c-4fe8f2befb6d","block_type":"box","text":"financial condition of the companies the Fund invests in decline or if overall market and economic conditions","page_number":61,"box":{"x":68,"y":491,"width":775,"height":11}},{"id":"57b738f0-4c3b-4a32-b1bb-9f960e9896b8","block_type":"box","text":"deteriorate. They may also decline due to factors that affect a par ticular industry or industries, such as labor","page_number":61,"box":{"x":69,"y":506,"width":777,"height":11}},{"id":"20ef3669-5c18-4088-b333-5fc4d0eddc61","block_type":"box","text":"shor tages or increase in production costs and competitive conditions within an industry. In addition, they may decline","page_number":61,"box":{"x":69,"y":521,"width":837,"height":11}},{"id":"f08be321-0e39-466b-a28f-b1dcda7a0497","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":61,"box":{"x":69,"y":536,"width":831,"height":11}},{"id":"7a2f3d39-563b-4c39-b9bc-47449a200471","block_type":"box","text":"adverse economic conditions, changes in the general outlook for corporate earnings, changes in interest or currency","page_number":61,"box":{"x":69,"y":551,"width":829,"height":11}},{"id":"41e1c53c-b208-49d4-b526-c1aaa9385f7b","block_type":"box","text":"rates or generally adverse investor sentiment.","page_number":61,"box":{"x":69,"y":566,"width":325,"height":11}},{"id":"225525e8-933d-4703-b89a-988aa19849e3","block_type":"box","text":"From time to time cer tain of the Funds may invest in shares of companies through initial public offerings","page_number":61,"box":{"x":102,"y":589,"width":745,"height":11}},{"id":"3084a758-a0a4-439d-9b46-7238f0677a92","block_type":"box","text":"(“IPOs”). IPOs have the potential to produce, and have in fact produced, substantial gains for cer tain Funds. There is","page_number":61,"box":{"x":69,"y":604,"width":833,"height":11}},{"id":"be6019a8-3d59-4285-ac53-d010d2fcf103","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":61,"box":{"x":69,"y":619,"width":824,"height":11}},{"id":"c39344e3-6c02-42ce-875f-04f10d2aef3f","block_type":"box","text":"these past gains as an indication of future per formance. The investment per formance of a Fund during periods when","page_number":61,"box":{"x":68,"y":634,"width":834,"height":12}},{"id":"053094bd-6792-40b6-b875-f89ff25ac19f","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":61,"box":{"x":70,"y":649,"width":782,"height":12}},{"id":"11733c7e-9280-43c8-b983-84ff00870b11","block_type":"box","text":"addition, as a Fund increases in size, the impact of IPOs on its per formance will generally decrease. Securities","page_number":61,"box":{"x":69,"y":664,"width":790,"height":12}},{"id":"34d16b26-c99c-47ef-878b-fc17c61c76ac","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":61,"box":{"x":70,"y":680,"width":823,"height":11}},{"id":"55a60b84-3358-4b57-9f9b-7f8a61aa6c04","block_type":"box","text":"Securities issued in IPOs have no trading history, and information about the companies may be available for very","page_number":61,"box":{"x":69,"y":695,"width":805,"height":11}},{"id":"806d2c98-61a8-409d-8f37-e32b5638078f","block_type":"box","text":"limited periods. In addition, the prices of securities sold in IPOs may be highly volatile or may decline shor tly after the","page_number":61,"box":{"x":70,"y":710,"width":836,"height":11}},{"id":"0242089d-94d2-424b-ab59-01950f67b59c","block_type":"box","text":"initial public offering.","page_number":61,"box":{"x":70,"y":725,"width":147,"height":11}},{"id":"fb48b540-89d9-4b0d-af85-0d60fcaab1e5","block_type":"box","text":"The Funds may invest in companies that have relatively small market capitalizations. These organizations will","page_number":61,"box":{"x":101,"y":748,"width":777,"height":11}},{"id":"37b0bf1b-522a-45f1-94d5-eeeb2e8b3fb9","block_type":"box","text":"normally have more limited product lines, markets and financial resources and will be dependent upon a more limited","page_number":61,"box":{"x":69,"y":763,"width":838,"height":11}},{"id":"dc3ca57c-d4f8-486f-91c0-8dfe3d5cda4c","block_type":"box","text":"management group than larger capitalized companies. In addition, it is more difficult to get information on smaller","page_number":61,"box":{"x":69,"y":778,"width":815,"height":11}},{"id":"bf576511-3e60-466e-a6b8-4064abfd1624","block_type":"box","text":"companies, which tend to be less well known, have shor ter operating histories, do not have significant ownership by","page_number":61,"box":{"x":69,"y":793,"width":829,"height":11}},{"id":"02eb7ff8-b4b5-401f-a0eb-67f25614d822","block_type":"box","text":"large investors and are followed by relatively few securities analysts. The securities of smaller capitalized companies","page_number":61,"box":{"x":70,"y":808,"width":831,"height":11}},{"id":"e15dc039-dfb1-46a2-afe6-1168caafef2f","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":61,"box":{"x":69,"y":823,"width":826,"height":11}},{"id":"f2ee7bbd-5042-4c78-8749-6bd2930e843e","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":61,"box":{"x":68,"y":838,"width":810,"height":12}},{"id":"71e167e6-b5b1-440e-b9bd-568ec4f1c899","block_type":"box","text":"more established companies.","page_number":61,"box":{"x":69,"y":854,"width":209,"height":10}},{"id":"71c993a2-ad36-45d4-9367-456444e438c5","block_type":"box","text":"II-26","page_number":61,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b0c98e7c-4fcf-4857-b048-7f2e56eff5e0","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":61,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"95831fd0-b10e-4282-89d0-538965cb625e","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":62,"box":{"x":102,"y":45,"width":776,"height":11}},{"id":"2c6ab0b1-c6f1-4ee0-bb6d-f51b9eafbf98","block_type":"box","text":"investing in such equity securities, see your Fund’s Prospectus. Cer tain of the Funds may also invest in shares of","page_number":62,"box":{"x":70,"y":60,"width":810,"height":11}},{"id":"0d17bafb-7783-4655-8ed4-6e73423aa646","block_type":"box","text":"private companies, which are subject to the risks of “Illiquid Investments” and “Restricted Securities” described","page_number":62,"box":{"x":70,"y":75,"width":799,"height":11}},{"id":"6e60ee6e-18c0-40bb-9c7e-67b4f53e0d23","block_type":"box","text":"below.","page_number":62,"box":{"x":69,"y":90,"width":43,"height":9}},{"id":"2a47a94b-6b78-499e-8cde-3c0c037f74c5","block_type":"box","text":"Real Estate-Related Securities.","page_number":62,"box":{"x":102,"y":113,"width":219,"height":9}},{"id":"c8bdabdb-7198-4cad-a0a7-761ec28b29f9","block_type":"box","text":"Although no Fund may invest directly in real estate, cer tain Funds may invest in","page_number":62,"box":{"x":327,"y":113,"width":565,"height":11}},{"id":"45f537b8-6dd2-4e78-bbe6-70d79f4496b4","block_type":"box","text":"equity securities of issuers that are principally engaged in the real estate industry. Such investments are subject to","page_number":62,"box":{"x":69,"y":128,"width":822,"height":11}},{"id":"8483488c-98ff-43bb-a78c-cebb3fe48d2e","block_type":"box","text":"cer tain risks associated with the ownership of real estate and with the real estate industry in general. These risks","page_number":62,"box":{"x":69,"y":143,"width":814,"height":11}},{"id":"78be5cb9-5f52-41a4-a616-6d305a5937b5","block_type":"box","text":"include, among others: possible declines in the value of real estate; risks related to general and local economic","page_number":62,"box":{"x":70,"y":158,"width":796,"height":11}},{"id":"2400ff24-1072-4258-911e-ad53af1f2890","block_type":"box","text":"conditions; possible lack of availability of mor tgage funds or other limitations on access to capital; overbuilding; risks","page_number":62,"box":{"x":69,"y":173,"width":836,"height":11}},{"id":"c04d3eeb-cd4f-4777-8e64-b45b4728600b","block_type":"box","text":"associated with leverage; market illiquidity; extended vacancies of proper ties; increase in competition, proper ty","page_number":62,"box":{"x":69,"y":188,"width":795,"height":12}},{"id":"9863040a-477b-46f7-9fed-24385699630b","block_type":"box","text":"taxes, capital expenditures and operating expenses; changes in zoning laws or other governmental regulation; costs","page_number":62,"box":{"x":68,"y":204,"width":828,"height":11}},{"id":"39bbf35b-52e5-4f99-bf10-d915c3287c0d","block_type":"box","text":"resulting from the clean-up of, and liability to third par ties for damages resulting from, environmental problems;","page_number":62,"box":{"x":69,"y":218,"width":794,"height":12}},{"id":"af967cb9-31ad-4213-8c9f-cc4f69d964d9","block_type":"box","text":"tenant bankruptcies or other credit problems; casualty or condemnation losses; uninsured damages from floods,","page_number":62,"box":{"x":68,"y":234,"width":805,"height":11}},{"id":"4d876f05-6a41-4af3-b1f6-c2e20a506dab","block_type":"box","text":"ear thquakes or other natural disasters; limitations on and variations in rents, including decreases in market rates for","page_number":62,"box":{"x":69,"y":249,"width":836,"height":11}},{"id":"4b6ffb7d-fb83-41fa-afa5-f841c8ba28c4","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":62,"box":{"x":69,"y":264,"width":838,"height":11}},{"id":"66a2dba7-49cf-43ec-ad6d-51d38e20051a","block_type":"box","text":"interest rates. To the extent that assets underlying a Fund’s investments are concentrated geographically, by proper ty","page_number":62,"box":{"x":70,"y":279,"width":838,"height":11}},{"id":"d8232b57-195b-4dc3-96be-50dc0be987f8","block_type":"box","text":"type or in cer tain other respects, the Fund may be subject to cer tain of the foregoing risks to a greater extent.","page_number":62,"box":{"x":68,"y":294,"width":785,"height":11}},{"id":"dc306fc4-b80f-4d2e-8058-e63c4864f26f","block_type":"box","text":"Investments by a Fund in securities of companies providing mor tgage servicing will be subject to the risks associated","page_number":62,"box":{"x":70,"y":309,"width":836,"height":11}},{"id":"b2f6f2c8-3bda-4d95-bf34-4196a6898ed3","block_type":"box","text":"with refinancings and their impact on servicing rights.","page_number":62,"box":{"x":68,"y":324,"width":381,"height":12}},{"id":"179ff099-d9f5-458a-a8c3-906eb98b2e1d","block_type":"box","text":"In addition, if a Fund receives rental income or income from the disposition of real proper ty acquired as a result","page_number":62,"box":{"x":102,"y":347,"width":797,"height":11}},{"id":"bacb15f7-91ca-4845-a16a-9ac45635a347","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":62,"box":{"x":69,"y":362,"width":829,"height":11}},{"id":"c89eba52-3123-4893-b5b6-4736b070a13a","block_type":"box","text":"its tax status as a regulated investment company because of cer tain income source requirements applicable to","page_number":62,"box":{"x":70,"y":377,"width":794,"height":12}},{"id":"5abb1202-7209-45a8-aa0a-d9690ebbe536","block_type":"box","text":"regulated investment companies under the Internal Revenue Code of 1986, as amended (the “Code”).","page_number":62,"box":{"x":69,"y":392,"width":730,"height":12}},{"id":"93c0dc38-ebb6-4bd4-b6f5-6d99304cc06b","block_type":"box","text":"Securities of Smaller or Emerging Growth Companies.","page_number":62,"box":{"x":102,"y":415,"width":381,"height":11}},{"id":"11625b6c-bbd2-48ff-8c6c-a5a687f079ab","block_type":"box","text":"Investment in smaller or emerging growth companies","page_number":62,"box":{"x":490,"y":415,"width":376,"height":11}},{"id":"d1d37aa7-ef85-4704-bea1-83bd35ca452e","block_type":"box","text":"involves greater risk than is customarily associated with investments in more established companies. The securities","page_number":62,"box":{"x":70,"y":430,"width":828,"height":11}},{"id":"80542b25-d2a9-4bf2-b3ef-0cefcd0724ca","block_type":"box","text":"of smaller or emerging growth companies may be subject to more abrupt or erratic market movements than larger,","page_number":62,"box":{"x":69,"y":445,"width":815,"height":12}},{"id":"7d638726-e0f4-4037-9512-90e915005bd7","block_type":"box","text":"more established companies or the market average in general. These companies may have limited product lines,","page_number":62,"box":{"x":69,"y":461,"width":804,"height":11}},{"id":"7cefaa97-fdd2-41e1-9abf-c9f4f95de75a","block_type":"box","text":"markets or financial resources, or they may be dependent on a limited management group.","page_number":62,"box":{"x":69,"y":475,"width":647,"height":12}},{"id":"ee2c9c25-a521-49e2-b2c1-1bf57246977b","block_type":"box","text":"Investments in smaller or emerging growth companies may involve greater risks and thus may be considered","page_number":62,"box":{"x":102,"y":498,"width":773,"height":11}},{"id":"35028683-bc59-43d9-ac8b-eac4f0453f7e","block_type":"box","text":"speculative. Full development of these companies and trends frequently takes time.","page_number":62,"box":{"x":69,"y":513,"width":597,"height":11}},{"id":"06fc8378-4cec-4c21-810f-38236eeda5c1","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":62,"box":{"x":102,"y":536,"width":797,"height":11}},{"id":"5ae71b55-9595-44b4-aa6b-d000b0cc1d07","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":62,"box":{"x":69,"y":551,"width":832,"height":11}},{"id":"3c607cf6-2ff7-4ab5-ac24-286e7eb416b2","block_type":"box","text":"result, the disposition by a Fund of por tfolio securities to meet redemptions or otherwise may require the Fund to","page_number":62,"box":{"x":69,"y":566,"width":808,"height":11}},{"id":"8a3c3104-84fe-48dc-953c-a69b60ce712a","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":62,"box":{"x":69,"y":581,"width":825,"height":12}},{"id":"93d8378e-5a79-42bb-848c-d05182da42c2","block_type":"box","text":"during periods when, in Fund management’s judgment, such disposition is not desirable.","page_number":62,"box":{"x":69,"y":597,"width":631,"height":11}},{"id":"19b8f601-35f6-4358-8580-1a08a4012673","block_type":"box","text":"The process of selection and continuous supervision by Fund management does not guarantee successful","page_number":62,"box":{"x":101,"y":619,"width":758,"height":11}},{"id":"2a5eea84-4fa6-4db4-9ee4-54bad52de83a","block_type":"box","text":"investment results. Careful initial selection is par ticularly impor tant in this area as many new enterprises have","page_number":62,"box":{"x":70,"y":634,"width":787,"height":11}},{"id":"b572b8e1-a45d-44c6-9258-e9dae364aa08","block_type":"box","text":"promise but lack cer tain of the fundamental factors necessary to prosper. Investing in small cap and emerging","page_number":62,"box":{"x":70,"y":649,"width":789,"height":12}},{"id":"a49704c4-b6f1-4614-8344-81db50abf9bc","block_type":"box","text":"growth companies requires specialized research and analysis.","page_number":62,"box":{"x":68,"y":665,"width":442,"height":11}},{"id":"59c475a7-4d27-4c2f-9cd7-4597c706419b","block_type":"box","text":"Fund management believes that relatively small companies may have the oppor tunity to develop into significant","page_number":62,"box":{"x":102,"y":687,"width":795,"height":11}},{"id":"c0f4fbc6-138d-401c-be93-95c29c2dda83","block_type":"box","text":"business enterprises. A Fund may invest in securities of small issuers in the relatively early stages of business","page_number":62,"box":{"x":69,"y":702,"width":791,"height":12}},{"id":"1309fcb9-434b-4480-b3e0-1cb4074777d9","block_type":"box","text":"development that have a new technology, a unique or proprietary product or service, or a favorable market position.","page_number":62,"box":{"x":69,"y":717,"width":823,"height":12}},{"id":"b40d512e-23b4-4715-80f6-5b4fe6f67c5c","block_type":"box","text":"Equity securities of specific small cap issuers may present different oppor tunities for long-term capital","page_number":62,"box":{"x":102,"y":740,"width":729,"height":11}},{"id":"1ba4545f-5017-4912-868d-def3fb534594","block_type":"box","text":"appreciation during varying por tions of economic or securities market cycles, as well as during varying stages of their","page_number":62,"box":{"x":69,"y":755,"width":837,"height":11}},{"id":"11005df4-8e36-4de5-b272-f1b52380ec78","block_type":"box","text":"business development. The market valuation of small cap issuers tends to fluctuate during economic or market","page_number":62,"box":{"x":69,"y":770,"width":794,"height":12}},{"id":"5fbb674e-b14b-4e6d-bb2d-ca68f99b0636","block_type":"box","text":"cycles.","page_number":62,"box":{"x":69,"y":786,"width":46,"height":11}},{"id":"ef9bacaa-4619-4c38-aedd-3cd296bcc7e1","block_type":"box","text":"Tracking Stocks","page_number":62,"box":{"x":103,"y":808,"width":110,"height":11}},{"id":"6d07a7e6-b6f8-466e-97b4-249688d41cf2","block_type":"box","text":". A tracking stock is a separate class of common stock whose value is linked to a specific","page_number":62,"box":{"x":214,"y":808,"width":640,"height":11}},{"id":"2110dad2-8ec1-4a8c-872c-ae91ae1102d4","block_type":"box","text":"business unit or operating division within a larger company and is designed to “track” the per formance of such","page_number":62,"box":{"x":69,"y":823,"width":791,"height":12}},{"id":"0af8e438-28ab-4c08-abcc-1445fb5ce65e","block_type":"box","text":"business unit or division. The tracking stock may pay dividends to shareholders independent of the parent company.","page_number":62,"box":{"x":69,"y":838,"width":826,"height":12}},{"id":"934d5c10-e651-42a4-8d61-44f8d0e5c7bf","block_type":"box","text":"The parent company, rather than the business unit or division, generally is the issuer of tracking stock. However,","page_number":62,"box":{"x":68,"y":853,"width":801,"height":12}},{"id":"7356e5ea-b1d5-4f26-a64c-b92de21e9513","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":62,"box":{"x":69,"y":869,"width":740,"height":11}},{"id":"eba0db62-30d4-4759-aa93-f15733c8bacb","block_type":"box","text":"Exchange-Traded Notes (“ETNs”).","page_number":62,"box":{"x":102,"y":891,"width":245,"height":11}},{"id":"b9cf8fb6-1ca2-4a2f-88eb-8562fb404637","block_type":"box","text":"Cer tain Funds may invest in ETNs. ETNs are generally notes representing","page_number":62,"box":{"x":354,"y":891,"width":521,"height":12}},{"id":"f9786bf2-4bd0-4b4c-8802-2d63714630f9","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":62,"box":{"x":69,"y":906,"width":814,"height":12}},{"id":"1f2fe8ca-0d2c-423d-8d0d-6fce3436aaae","block_type":"box","text":"II-27","page_number":62,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f0fe75ed-39ce-4407-9bec-1923a7454b67","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":62,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7f0738bc-f0f2-48a4-a930-6da8bbf79781","block_type":"box","text":"are based on the per formance of one or more underlying assets, reference rates or indexes, minus fees and","page_number":63,"box":{"x":69,"y":45,"width":774,"height":11}},{"id":"ed8e1815-d1c8-446c-8ce5-8b4c52049024","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":63,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"5ffb18a4-2e84-4aed-bae0-6e9904de8891","block_type":"box","text":"ETF, an ETN can be held until the ETN’s maturity, at which time the issuer will pay a return linked to the per formance","page_number":63,"box":{"x":70,"y":75,"width":831,"height":11}},{"id":"934ad6a9-9c93-4724-a999-7b8bb797906c","block_type":"box","text":"of the specific asset, index or rate (“reference instrument”) to which the ETN is linked minus cer tain fees. Unlike","page_number":63,"box":{"x":69,"y":90,"width":805,"height":11}},{"id":"1ca61101-ba26-4a8e-b193-fc1d86650523","block_type":"box","text":"regular bonds, ETNs do not make periodic interest payments, and principal is not protected.","page_number":63,"box":{"x":69,"y":105,"width":654,"height":11}},{"id":"cada3590-ef6d-49e8-9e18-471597c2e6e3","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":63,"box":{"x":101,"y":128,"width":794,"height":11}},{"id":"d0acdacf-eb42-4f81-a09f-64e1574e2d83","block_type":"box","text":"the ETN, volatility and lack of liquidity in underlying markets, changes in the applicable interest rates, the","page_number":63,"box":{"x":68,"y":143,"width":748,"height":11}},{"id":"804140c9-90c6-4df3-8e7c-67f8107f0444","block_type":"box","text":"per formance of the reference instrument, changes in the issuer’s credit rating and economic, legal, political or","page_number":63,"box":{"x":70,"y":158,"width":789,"height":11}},{"id":"6f001ca5-e8e3-41ad-88ca-5cd01f697fdd","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":63,"box":{"x":68,"y":173,"width":831,"height":11}},{"id":"4354e38d-5ec5-4ced-844c-d5f9e698d427","block_type":"box","text":"drop due to a downgrade in an issuer’s credit rating, despite the underlying reference instrument remaining","page_number":63,"box":{"x":69,"y":188,"width":766,"height":12}},{"id":"0b6a1b0f-6695-4de7-82ce-c72baca82e83","block_type":"box","text":"unchanged. When a Fund invests in ETNs, it will bear its propor tionate share of any fees and expenses borne by the","page_number":63,"box":{"x":69,"y":203,"width":828,"height":12}},{"id":"a7f8a251-2149-445f-8e79-ec6c84112986","block_type":"box","text":"ETN.","page_number":63,"box":{"x":70,"y":219,"width":30,"height":8}},{"id":"874e4215-6281-41b3-b8d5-d88729fce603","block_type":"box","text":"An ETN that is tied to a reference instrument may not replicate the per formance of the reference instrument.","page_number":63,"box":{"x":101,"y":241,"width":776,"height":11}},{"id":"ddf38421-1082-4166-b0ac-40ee10acb96f","block_type":"box","text":"ETNs also incur cer tain expenses not incurred by their applicable reference instrument. Some ETNs that use leverage","page_number":63,"box":{"x":70,"y":256,"width":837,"height":12}},{"id":"0c2014c0-4529-4706-b3a6-091bcade4b98","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":63,"box":{"x":69,"y":271,"width":840,"height":12}},{"id":"645c6755-44ed-44cd-9f06-3dd74ca050ee","block_type":"box","text":"risk as other instruments that use leverage in any form. While leverage allows for greater potential return, the","page_number":63,"box":{"x":69,"y":286,"width":781,"height":12}},{"id":"c75b3341-1c94-4ef1-9b62-2c025e3a8f59","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":63,"box":{"x":70,"y":302,"width":827,"height":11}},{"id":"83ab72fa-5f43-4172-ac08-579228b36d3b","block_type":"box","text":"addition to the money lost on the investment, the loan still needs to be repaid.","page_number":63,"box":{"x":69,"y":317,"width":560,"height":11}},{"id":"05c4189d-19cd-4e7d-a3c9-381328a299b5","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":63,"box":{"x":102,"y":340,"width":774,"height":11}},{"id":"600db62c-d855-4189-b8ed-54e29a106593","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":63,"box":{"x":68,"y":355,"width":788,"height":11}},{"id":"f5291400-da1c-4dfe-889a-1c77125fb5dc","block_type":"box","text":"reference instrument. The market value of ETN shares may differ from the value of the reference instrument. This","page_number":63,"box":{"x":69,"y":370,"width":810,"height":11}},{"id":"b39df85a-bd30-4c86-a14a-08640b44e186","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":63,"box":{"x":69,"y":385,"width":815,"height":11}},{"id":"8b82c5d2-ff9e-4035-b92a-8c4029b4ae93","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":63,"box":{"x":68,"y":400,"width":766,"height":11}},{"id":"c1680471-40cd-4fe5-b19d-85c3c2030d5c","block_type":"box","text":"instrument that the ETN seeks to track.","page_number":63,"box":{"x":70,"y":415,"width":279,"height":9}},{"id":"1b4b6eef-cbc2-4206-bd6a-abb119252671","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":63,"box":{"x":101,"y":438,"width":791,"height":11}},{"id":"a333858e-830c-44f7-8ef9-7119a9e88345","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":63,"box":{"x":69,"y":453,"width":818,"height":11}},{"id":"1a1649ce-14bc-4346-a0dd-24743de48c81","block_type":"box","text":"market. An investor in an ETN could lose some or all of the amount invested.","page_number":63,"box":{"x":69,"y":468,"width":547,"height":9}},{"id":"7d3d183c-c306-4dfa-b378-0b38940aada2","block_type":"box","text":"ETNs are also subject to tax risks. The Internal Revenue Service (the “IRS”) may not accept, and a cour t may not","page_number":63,"box":{"x":102,"y":491,"width":807,"height":11}},{"id":"eb85643e-8e93-4c21-ae33-e072e78d4c16","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":63,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"9c3da4ee-a99c-43e8-9f2a-cf596f01806f","block_type":"box","text":"derived by a Fund from investments in ETNs may be affected by future legislation.","page_number":63,"box":{"x":69,"y":521,"width":581,"height":11}},{"id":"06fb34d5-15d9-4e1e-b994-babe219ac743","block_type":"box","text":"Foreign Investments.","page_number":63,"box":{"x":102,"y":544,"width":152,"height":11}},{"id":"d92084f9-ab72-47e7-b3fe-50e852041aeb","block_type":"box","text":"Foreign Investment Risks.","page_number":63,"box":{"x":102,"y":566,"width":182,"height":11}},{"id":"9c3cd051-dac4-4f97-b9cb-2a0913bbf9ab","block_type":"box","text":"Cer tain Funds may invest in foreign securities, including securities from issuers","page_number":63,"box":{"x":291,"y":566,"width":567,"height":11}},{"id":"0582a1df-3059-4d32-a74f-2fa9a787d38d","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":63,"box":{"x":70,"y":581,"width":822,"height":12}},{"id":"00d6da3d-ebf2-46ac-b6b2-42ed9dbddf22","block_type":"box","text":"Investing in foreign securities involves risks not typically associated with investing in securities of companies","page_number":63,"box":{"x":70,"y":596,"width":774,"height":12}},{"id":"e008c706-2027-439e-8fb3-30f34d3752aa","block_type":"box","text":"organized and operated in the United States that can increase the chances that a Fund will lose money.","page_number":63,"box":{"x":69,"y":612,"width":738,"height":11}},{"id":"9c78c4be-a687-4275-a983-50bc570f2e05","block_type":"box","text":"Securities issued by cer tain companies organized outside the United States may not be deemed to be foreign","page_number":63,"box":{"x":102,"y":634,"width":782,"height":12}},{"id":"cd664a4e-7f2c-42b1-bbb4-f615494483df","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":63,"box":{"x":69,"y":649,"width":824,"height":12}},{"id":"c8f2ea01-53f7-4ecd-950a-526f4994a4fc","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":63,"box":{"x":70,"y":665,"width":771,"height":11}},{"id":"cb688e88-ee4a-473b-89a2-4ddee66540c7","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":63,"box":{"x":69,"y":680,"width":792,"height":11}},{"id":"866adff1-638e-4fef-a900-b3633f82489b","block_type":"box","text":"benchmark index.","page_number":63,"box":{"x":69,"y":695,"width":124,"height":9}},{"id":"3593ed54-1547-44a3-987b-88e97178fd90","block_type":"box","text":"In addition to equity securities, foreign investments of the Funds may include: (a) debt obligations issued or","page_number":63,"box":{"x":102,"y":717,"width":767,"height":12}},{"id":"009faae1-f6f1-4b68-909d-d2dcdabf6306","block_type":"box","text":"guaranteed by foreign sovereign governments or their agencies, authorities, instrumentalities or political","page_number":63,"box":{"x":68,"y":732,"width":742,"height":12}},{"id":"be85f0c7-5a72-4639-a326-a2a6b614b640","block_type":"box","text":"subdivisions, including a foreign state, province or municipality; (b) debt obligations of supranational organizations;","page_number":63,"box":{"x":69,"y":748,"width":818,"height":11}},{"id":"8da761dd-a273-4447-bc9f-3f38990369b3","block_type":"box","text":"(c) debt obligations of foreign banks and bank holding companies; (d) debt obligations of domestic banks and","page_number":63,"box":{"x":69,"y":763,"width":780,"height":11}},{"id":"4e9d2f2d-d580-4c91-82d5-651e53087bd8","block_type":"box","text":"corporations issued in foreign currencies; (e) debt obligations denominated in the Euro; and (f) foreign corporate debt","page_number":63,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"3b8d9c27-9cae-4c22-82ed-a87f4b408579","block_type":"box","text":"securities and commercial paper. Such securities may include loan par ticipations and assignments, conver tible","page_number":63,"box":{"x":69,"y":793,"width":794,"height":11}},{"id":"88975599-6502-4efc-b37e-99118b07965e","block_type":"box","text":"securities and zero-coupon securities.","page_number":63,"box":{"x":69,"y":808,"width":268,"height":11}},{"id":"9a8f65b1-c32e-47ba-bd1d-86d55a945d66","block_type":"box","text":"Dividends or interest on, or proceeds from the sale of, foreign securities may be subject to foreign withholding","page_number":63,"box":{"x":102,"y":831,"width":785,"height":11}},{"id":"1f7945ff-bf99-4130-8b5e-cc42509f1a56","block_type":"box","text":"taxes.","page_number":63,"box":{"x":68,"y":847,"width":42,"height":8}},{"id":"c2832726-63fc-4dfb-bc13-ce3b66131ce2","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":63,"box":{"x":101,"y":869,"width":798,"height":11}},{"id":"478e22c6-30f9-421a-bc30-7bc179829442","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":63,"box":{"x":68,"y":884,"width":815,"height":11}},{"id":"6b1f2ba5-b258-4b9e-80a9-ddf6f2a23497","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":63,"box":{"x":70,"y":899,"width":792,"height":11}},{"id":"76464f4f-56f5-4639-a722-923fb84413be","block_type":"box","text":"II-28","page_number":63,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f6ec0849-f9be-4f11-924b-0bddebb72f86","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":63,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ef7ab3c5-25f2-411c-ba11-7c1916e55bd6","block_type":"box","text":"underlying security (","page_number":64,"box":{"x":69,"y":45,"width":140,"height":11}},{"id":"e3d809fb-d8cd-44a4-a1f7-c833a58f95de","block_type":"box","text":"i.e.","page_number":64,"box":{"x":211,"y":45,"width":20,"height":9}},{"id":"46a60b4a-cb46-47ce-ad2a-41488ad1adc6","block_type":"box","text":", the Fund’s quote from the closed foreign market). The impact of a closed foreign market on a","page_number":64,"box":{"x":234,"y":45,"width":675,"height":11}},{"id":"5c82eac1-2edb-4016-ba0d-6018951dca53","block_type":"box","text":"Fund is likely to be greater where a large por tion of the Fund’s underlying securities or other instruments trade on","page_number":64,"box":{"x":70,"y":60,"width":809,"height":11}},{"id":"34d76019-5f0f-4df5-bea8-ce43942e97b4","block_type":"box","text":"that closed foreign market or when the foreign market is closed for unscheduled reasons. These deviations may","page_number":64,"box":{"x":68,"y":75,"width":800,"height":11}},{"id":"7cb993e9-4112-4cfb-bc28-597b74539c7c","block_type":"box","text":"result in premiums or discounts to cer tain Funds’ NAVs that may be greater than those experienced by other ETFs.","page_number":64,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"98f4c5e0-13cb-4392-b237-bdfd762180a9","block_type":"box","text":"Foreign Market Risk.","page_number":64,"box":{"x":102,"y":113,"width":144,"height":11}},{"id":"77cdf961-3895-4451-8ac1-785b5a6f260e","block_type":"box","text":"Funds that may invest in foreign securities offer the potential for more diversification than a","page_number":64,"box":{"x":254,"y":113,"width":652,"height":11}},{"id":"ad7bcbde-f6df-447b-ac9d-d32cef394822","block_type":"box","text":"Fund that invests only in the United States because securities traded on foreign markets have often (though not","page_number":64,"box":{"x":70,"y":128,"width":797,"height":11}},{"id":"bea5fa55-4709-493d-9d00-8329066d4ca6","block_type":"box","text":"always) per formed differently from securities traded in the United States. However, such investments often involve","page_number":64,"box":{"x":69,"y":143,"width":817,"height":11}},{"id":"f5879bd6-a115-4362-8d30-6a6c12501b9c","block_type":"box","text":"risks not present in U.S. investments that can increase the chances that a Fund will lose money. In par ticular, a Fund","page_number":64,"box":{"x":69,"y":158,"width":836,"height":11}},{"id":"7fc562b3-eeb2-4e82-976f-1b5e7992f486","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":64,"box":{"x":70,"y":173,"width":835,"height":11}},{"id":"956f4e38-132a-4127-a2d7-620521a0c3e2","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":64,"box":{"x":69,"y":188,"width":810,"height":12}},{"id":"0dd752a5-4f62-4a6d-8fe6-58761abb1488","block_type":"box","text":"prices of foreign securities may fluctuate more than prices of securities traded in the United States. Investments in","page_number":64,"box":{"x":70,"y":203,"width":820,"height":12}},{"id":"31ca23a2-ec3f-4cf3-af04-e736913eb201","block_type":"box","text":"foreign markets may also be adversely affected by governmental actions such as the imposition of punitive taxes or","page_number":64,"box":{"x":68,"y":218,"width":826,"height":12}},{"id":"6995dfe4-7f8e-4b27-9de2-678c2df8a006","block_type":"box","text":"tariffs. In addition, economic conditions, such as volatile currency exchange rates and interest rates, political events,","page_number":64,"box":{"x":68,"y":234,"width":836,"height":11}},{"id":"819a3a5d-a691-46ec-ae23-31804b36fc64","block_type":"box","text":"military action and other conditions may, without prior warning, lead to the governments of cer tain countries, or the","page_number":64,"box":{"x":69,"y":249,"width":821,"height":11}},{"id":"ce6a6432-dd01-4f7e-a275-dd0ded5df271","block_type":"box","text":"U.S. Government with respect to cer tain countries, prohibiting or imposing substantial restrictions through capital","page_number":64,"box":{"x":70,"y":264,"width":807,"height":11}},{"id":"1a36a43b-1c40-47ed-8564-530b79548dd4","block_type":"box","text":"controls and/or sanctions on foreign investing in the capital markets or cer tain industries in those countries. Capital","page_number":64,"box":{"x":69,"y":279,"width":830,"height":11}},{"id":"0c1eb165-e9b1-41c1-bfe9-528073943ac6","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":64,"box":{"x":69,"y":294,"width":810,"height":11}},{"id":"a9175a23-8a21-4cf7-9681-06d1cb829312","block_type":"box","text":"securities, derivatives or other assets and may also include retaliatory actions of one government against another","page_number":64,"box":{"x":69,"y":309,"width":813,"height":11}},{"id":"a1aba28a-cfce-425d-8515-d939c63b70d3","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":64,"box":{"x":68,"y":324,"width":828,"height":12}},{"id":"84ea55e2-8abd-4dd9-a7ef-eceda5a957b2","block_type":"box","text":"transfer, receive, deliver or otherwise obtain exposure to foreign securities and assets, including the ability to","page_number":64,"box":{"x":68,"y":339,"width":782,"height":12}},{"id":"a80c5cd4-4fa7-492f-80f0-15025b00930c","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":64,"box":{"x":68,"y":355,"width":796,"height":11}},{"id":"20d02b97-ef90-467a-864e-29294d2e0d49","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":64,"box":{"x":70,"y":370,"width":837,"height":11}},{"id":"9aa4008c-5dbf-4031-bbb7-22cc5f925c16","block_type":"box","text":"potential foreign market risks include exchange controls, difficulties in pricing securities, defaults on foreign","page_number":64,"box":{"x":70,"y":385,"width":768,"height":11}},{"id":"cf125b6d-278b-4dcd-b9f8-040f4b064226","block_type":"box","text":"government securities, difficulties in enforcing favorable legal judgments in foreign cour ts, and political and social","page_number":64,"box":{"x":68,"y":400,"width":813,"height":11}},{"id":"9f43e1f6-a683-46fe-b49f-3a0317d631c1","block_type":"box","text":"conditions, such as diplomatic relations, confiscatory taxation, expropriation, limitation on the removal of funds or","page_number":64,"box":{"x":69,"y":415,"width":814,"height":11}},{"id":"9345116d-10b6-4562-b75f-174fb6561693","block_type":"box","text":"assets, or imposition of (or change in) exchange control regulations. Legal remedies available to investors in cer tain","page_number":64,"box":{"x":69,"y":430,"width":828,"height":11}},{"id":"934a8f19-4494-4333-9aeb-182da3b7c4f0","block_type":"box","text":"foreign countries may be less extensive than those available to investors in the United States or other foreign","page_number":64,"box":{"x":68,"y":445,"width":782,"height":12}},{"id":"fb82d97b-b242-4332-8b82-c4d2c0623028","block_type":"box","text":"countries. In addition, changes in government administrations or economic or monetary policies in the United States","page_number":64,"box":{"x":69,"y":460,"width":830,"height":12}},{"id":"6f977796-249a-4906-afff-9e0924c3a5c2","block_type":"box","text":"or abroad could result in appreciation or depreciation of por tfolio securities and could favorably or adversely affect a","page_number":64,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"7f529c75-dd25-4ee4-9269-03e328ada4b9","block_type":"box","text":"Fund’s operations.","page_number":64,"box":{"x":70,"y":491,"width":130,"height":11}},{"id":"8c4556b0-f674-4ff6-9ee4-ab035c27cf58","block_type":"box","text":"Foreign Economy Risk.","page_number":64,"box":{"x":102,"y":514,"width":158,"height":11}},{"id":"3a1079fa-1766-42fd-b0bb-6a2bec20e96e","block_type":"box","text":"The economies of cer tain foreign markets often do not compare favorably with that of the","page_number":64,"box":{"x":267,"y":513,"width":636,"height":12}},{"id":"83fd73e1-d63f-4b05-b188-6d604dd3b1cd","block_type":"box","text":"United States with respect to such issues as growth of gross national product, reinvestment of capital, resources,","page_number":64,"box":{"x":70,"y":528,"width":812,"height":12}},{"id":"97ae7cdf-7317-4b1a-9dc3-a8463d9a9046","block_type":"box","text":"and balance of payments position. Cer tain such economies may rely heavily on par ticular industries or foreign capital","page_number":64,"box":{"x":69,"y":543,"width":835,"height":12}},{"id":"d4065223-c259-4fb2-9513-395d9481c9f3","block_type":"box","text":"and are more vulnerable to diplomatic developments, the imposition of economic sanctions against a par ticular","page_number":64,"box":{"x":69,"y":559,"width":795,"height":11}},{"id":"942ef601-7cfa-455d-a726-174fa60d9fcd","block_type":"box","text":"country or countries, changes in international trading patterns, trade barriers, and other protectionist or retaliatory","page_number":64,"box":{"x":69,"y":574,"width":817,"height":11}},{"id":"61ff2960-e804-46c8-88f7-56a813977fb3","block_type":"box","text":"measures.","page_number":64,"box":{"x":69,"y":591,"width":74,"height":7}},{"id":"b9e73d3f-bbe5-4d9f-9f6b-c6363d1b4fb8","block_type":"box","text":"Currency Risk and Exchange Risk.","page_number":64,"box":{"x":102,"y":612,"width":240,"height":11}},{"id":"4067342d-cc87-4caa-855b-5cda027c21b2","block_type":"box","text":"Because foreign securities generally are denominated and pay dividends or","page_number":64,"box":{"x":349,"y":612,"width":534,"height":11}},{"id":"9fcb2f8e-646d-467d-818f-0e9165e9971a","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":64,"box":{"x":70,"y":627,"width":838,"height":11}},{"id":"f156a1c3-a6d7-44e5-aecd-64688a471cde","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":64,"box":{"x":69,"y":642,"width":833,"height":11}},{"id":"23b59e3b-a4b0-4e90-adb0-72f17678acf9","block_type":"box","text":"a foreign currency, a security denominated in that currency loses value because the currency is wor th fewer U.S.","page_number":64,"box":{"x":69,"y":657,"width":801,"height":11}},{"id":"f4ef9d11-127c-43fa-aff3-88d9fd654489","block_type":"box","text":"dollars. Conversely, when the U.S. dollar decreases in value against a foreign currency, a security denominated in","page_number":64,"box":{"x":69,"y":672,"width":808,"height":11}},{"id":"d665fd35-2837-4850-9922-d72582b6b291","block_type":"box","text":"that currency gains value because the currency is wor th more U.S. dollars. This risk, generally known as “currency","page_number":64,"box":{"x":68,"y":687,"width":816,"height":11}},{"id":"14f812fd-40f6-4b13-b8bb-b171d17d4ea9","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":64,"box":{"x":69,"y":702,"width":814,"height":12}},{"id":"c1123dc5-bad7-4f87-9af1-e339777d6bdd","block_type":"box","text":"those returns. Currency exchange rates can also be affected unpredictably by intervention by U.S. or foreign","page_number":64,"box":{"x":68,"y":717,"width":771,"height":12}},{"id":"465e2614-5c63-4ba3-9ecd-e05a1bea6809","block_type":"box","text":"governments or central banks, or the failure to intervene, or buy currency controls or political developments in the","page_number":64,"box":{"x":68,"y":732,"width":813,"height":12}},{"id":"f6d09616-15d0-4916-9e14-99687e419439","block_type":"box","text":"United States or abroad.","page_number":64,"box":{"x":70,"y":748,"width":172,"height":9}},{"id":"a00b7a0b-3c05-448d-9da9-2a3143064bca","block_type":"box","text":"Governmental Supervision and Regulation/Accounting Standards.","page_number":64,"box":{"x":102,"y":770,"width":466,"height":12}},{"id":"43799ff4-2f4b-46ec-a96b-dcadab7598fc","block_type":"box","text":"Many foreign governments supervise and","page_number":64,"box":{"x":575,"y":770,"width":293,"height":12}},{"id":"ea5b87ee-85d4-41ef-8124-c2342b926312","block_type":"box","text":"regulate stock exchanges, brokers and the sale of securities less than does the United States. Some countries may","page_number":64,"box":{"x":69,"y":785,"width":828,"height":12}},{"id":"798bb7dd-a6a0-4d43-84a0-6ac6f5b0f9ca","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":64,"box":{"x":69,"y":801,"width":826,"height":11}},{"id":"3c4d7b14-aeb6-4cee-a977-1b8c903cf4ba","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":64,"box":{"x":69,"y":816,"width":778,"height":11}},{"id":"d66b019c-8163-4958-997b-737efdd88665","block_type":"box","text":"securities based on nonpublic information about that company. Accounting standards in other countries are not","page_number":64,"box":{"x":69,"y":831,"width":794,"height":11}},{"id":"90b81ccf-248d-4f5b-b0a4-e99a3fc20dfb","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":64,"box":{"x":69,"y":846,"width":831,"height":11}},{"id":"8d5e7328-9910-4edc-8c7d-65eb099bf378","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":64,"box":{"x":69,"y":861,"width":840,"height":11}},{"id":"9082a2f0-aab3-46dc-bb2a-123a7a766a4d","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":64,"box":{"x":69,"y":876,"width":760,"height":11}},{"id":"8101c8e8-d3bb-4e28-8a2b-929390256483","block_type":"box","text":"restrictions, through penalties and otherwise, on foreign investments by U.S. investors such as the Fund. If such","page_number":64,"box":{"x":69,"y":891,"width":803,"height":12}},{"id":"f235b145-263a-4978-83a5-723b687b3151","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":64,"box":{"x":69,"y":906,"width":798,"height":12}},{"id":"e9df246f-9702-4f40-b2b1-03840281230a","block_type":"box","text":"II-29","page_number":64,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"651fa299-80cc-419b-9f92-8b82ef2a93a4","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":64,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9c11cffa-f727-43ca-b8c5-997571f2eafe","block_type":"box","text":"assets in U.S. securities. Also, brokerage commissions and other costs of buying or selling securities often are","page_number":65,"box":{"x":69,"y":45,"width":793,"height":11}},{"id":"443f0ac2-9e89-4bf2-bd88-ac070837d993","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":65,"box":{"x":69,"y":60,"width":797,"height":11}},{"id":"4698dfe3-7ab3-4284-958d-a3a8b8279d76","block_type":"box","text":"investments.","page_number":65,"box":{"x":70,"y":75,"width":89,"height":9}},{"id":"05f4c665-ccb2-499d-a676-3745f576ef80","block_type":"box","text":"Cer tain Risks of Holding Fund Assets Outside the United States.","page_number":65,"box":{"x":102,"y":98,"width":458,"height":11}},{"id":"98df30d3-6da7-4159-9b80-e4d028e9cf90","block_type":"box","text":"A Fund generally holds its foreign securities and","page_number":65,"box":{"x":566,"y":98,"width":341,"height":11}},{"id":"86cc077f-09e9-4675-a1be-5e23b344a8d5","block_type":"box","text":"cash in foreign banks and securities depositories. Some foreign banks and securities depositories may be recently","page_number":65,"box":{"x":69,"y":113,"width":819,"height":11}},{"id":"b7238591-c467-4a9f-b808-d1eecd378176","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":65,"box":{"x":69,"y":128,"width":813,"height":11}},{"id":"c8e64647-0225-46bc-be2e-28d84379d54b","block_type":"box","text":"their operations. Also, the laws of cer tain countries may put limits on a Fund’s ability to recover its assets if a foreign","page_number":65,"box":{"x":68,"y":143,"width":838,"height":11}},{"id":"5fc4d5e9-d266-4ef4-9a94-088692572d6b","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":65,"box":{"x":69,"y":158,"width":835,"height":11}},{"id":"a4835daf-5aaa-4172-b27a-b1a884ad3c01","block_type":"box","text":"for a Fund to buy, sell and hold securities in cer tain foreign markets than in the United States. The increased","page_number":65,"box":{"x":68,"y":173,"width":777,"height":11}},{"id":"ad868931-9740-4e87-9f43-e924a0f93a76","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":65,"box":{"x":69,"y":188,"width":831,"height":12}},{"id":"5609a332-541f-42b5-ad9f-26c6ddffcf45","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":65,"box":{"x":70,"y":203,"width":828,"height":12}},{"id":"2e22b894-25f8-4c8a-bf70-552adac2e85b","block_type":"box","text":"States.","page_number":65,"box":{"x":69,"y":219,"width":49,"height":8}},{"id":"0dda53cc-dcc6-4fdb-98f0-2caa83b759fc","block_type":"box","text":"Publicly Available Information.","page_number":65,"box":{"x":102,"y":241,"width":210,"height":11}},{"id":"4aabd56f-9e65-4996-96e6-5b593e1baf1e","block_type":"box","text":"In general, less information is publicly available with respect to foreign issuers","page_number":65,"box":{"x":319,"y":241,"width":558,"height":11}},{"id":"6751716a-3f4a-4e3c-9cae-a6876f15f675","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":65,"box":{"x":68,"y":256,"width":779,"height":12}},{"id":"4db6013e-b29b-4a8f-b066-0323ccafc221","block_type":"box","text":"accounting and financial repor ting requirements applicable to issuers in the United States. While the volume of","page_number":65,"box":{"x":69,"y":271,"width":793,"height":12}},{"id":"07a7a59f-5c23-4154-a37d-aeca0e99f6f3","block_type":"box","text":"transactions effected on foreign stock exchanges has increased in recent years, it remains appreciably below that of","page_number":65,"box":{"x":68,"y":286,"width":834,"height":12}},{"id":"f1f587c5-3569-47da-9ec1-ac58986e3b44","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":65,"box":{"x":68,"y":302,"width":841,"height":11}},{"id":"2e314272-405b-4c51-943c-d91df1a76d48","block_type":"box","text":"be more volatile than, comparable investments in securities in U.S. companies. In addition, there is generally less","page_number":65,"box":{"x":69,"y":317,"width":813,"height":11}},{"id":"11d56ab9-4e5e-4021-911e-37c8e40ca0cf","block_type":"box","text":"government supervision and regulation of securities exchanges, brokers and issuers in foreign countries than in the","page_number":65,"box":{"x":68,"y":332,"width":827,"height":11}},{"id":"df8e171d-51ff-4eb3-8113-eb8f5cf8602a","block_type":"box","text":"United States.","page_number":65,"box":{"x":70,"y":347,"width":99,"height":9}},{"id":"a662c100-023a-4863-a34a-381b7bb85615","block_type":"box","text":"Settlement Risk.","page_number":65,"box":{"x":102,"y":370,"width":116,"height":9}},{"id":"e6abec76-9cab-4a71-b4cc-1a5de52b123e","block_type":"box","text":"Settlement and clearance procedures in cer tain foreign markets differ significantly from those","page_number":65,"box":{"x":225,"y":370,"width":669,"height":11}},{"id":"c64c1baa-9ac5-463e-a826-e9ef4d7751bb","block_type":"box","text":"in the United States. Supervisory authorities may also be unable to apply standards which are comparable with those","page_number":65,"box":{"x":70,"y":385,"width":837,"height":11}},{"id":"46a1867a-e300-4b6b-8a6d-ae84e00a9fda","block_type":"box","text":"in the United States. Foreign settlement procedures and trade regulations also may involve cer tain risks (such as","page_number":65,"box":{"x":70,"y":400,"width":808,"height":11}},{"id":"f421ca9b-8a5a-44f7-984b-659d1e4c03c5","block_type":"box","text":"delays in payment for or delivery of securities) not typically generated by the settlement of U.S. investments.","page_number":65,"box":{"x":69,"y":415,"width":772,"height":11}},{"id":"26c84048-6c5c-4a39-b317-1e8c74c01b3e","block_type":"box","text":"Communications between the United States and emerging market countries may be unreliable, increasing the","page_number":65,"box":{"x":102,"y":438,"width":781,"height":11}},{"id":"dcfac66f-29cb-4dbb-a9eb-a0368ae3e2c5","block_type":"box","text":"risk of delayed settlements or losses of security cer tificates in markets that still rely on physical settlement.","page_number":65,"box":{"x":69,"y":453,"width":771,"height":11}},{"id":"3abd92ff-4569-4dc7-bdfa-8af9d08f5706","block_type":"box","text":"Settlements in cer tain foreign countries at times have not kept pace with the number of securities transactions;","page_number":65,"box":{"x":69,"y":468,"width":797,"height":11}},{"id":"c1f92a9f-88b9-4354-a440-b7fc552a5b6d","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":65,"box":{"x":68,"y":483,"width":802,"height":11}},{"id":"e2ae8275-7bbe-46a5-bc13-c74898ba69af","block_type":"box","text":"settling a purchase of securities, it may miss attractive investment oppor tunities and cer tain of its assets may be","page_number":65,"box":{"x":69,"y":498,"width":812,"height":11}},{"id":"8faaa4a4-e6dd-410f-8ac9-ac203e00a934","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":65,"box":{"x":69,"y":513,"width":821,"height":12}},{"id":"fd2e8d4b-5830-49ce-8cfa-95ae9ad01c1b","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":65,"box":{"x":69,"y":528,"width":816,"height":12}},{"id":"d86dc3ae-8bb5-4b76-b059-d78adc1e6904","block_type":"box","text":"another par ty, the Fund could be liable to that par ty for any losses incurred.","page_number":65,"box":{"x":69,"y":543,"width":539,"height":12}},{"id":"8c6c0798-adeb-452f-97da-c061e29091b3","block_type":"box","text":"Because of uncer tainties in the operation of settlement systems in individual markets, competing claims may","page_number":65,"box":{"x":102,"y":566,"width":781,"height":11}},{"id":"834c05ec-6a9e-4b3f-8510-6c7080f638d4","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":65,"box":{"x":69,"y":581,"width":810,"height":11}},{"id":"d4ba26c1-5ffc-4120-b13c-5ab474b34737","block_type":"box","text":"otherwise be limited or inadequate to meet the Fund’s claims in case of such event.","page_number":65,"box":{"x":69,"y":596,"width":601,"height":11}},{"id":"1df2f180-a5e1-46fb-814c-82fa5f925aa0","block_type":"box","text":"Sovereign Debt.","page_number":65,"box":{"x":102,"y":619,"width":111,"height":11}},{"id":"0a90ff2e-6cbb-44b3-9e69-ba4d127ba376","block_type":"box","text":"Investment in sovereign debt can involve a high degree of risk. The governmental entity that","page_number":65,"box":{"x":221,"y":619,"width":653,"height":11}},{"id":"09066f02-6f08-4012-aa7d-6962aaddd104","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":65,"box":{"x":69,"y":634,"width":837,"height":12}},{"id":"4633516c-1689-48d1-ad3e-2ff941ed5f56","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":65,"box":{"x":69,"y":649,"width":826,"height":12}},{"id":"de8de63f-4d44-40e4-8741-c83e664d8475","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":65,"box":{"x":69,"y":664,"width":798,"height":12}},{"id":"f33f5acf-a179-4f39-809b-ddc2c0970866","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":65,"box":{"x":69,"y":680,"width":809,"height":11}},{"id":"3bbd497e-aa73-4388-958c-146c6de35e2e","block_type":"box","text":"service burden to the economy as a whole, the governmental entity’s policy towards the International Monetary Fund","page_number":65,"box":{"x":69,"y":695,"width":832,"height":11}},{"id":"c7485256-a288-4ca0-b593-dd8182f5b5be","block_type":"box","text":"and the political constraints to which a governmental entity may be subject. Governmental entities may also be","page_number":65,"box":{"x":69,"y":710,"width":790,"height":11}},{"id":"97d98faa-6758-474e-968f-93b8a976cb17","block_type":"box","text":"dependent on expected disbursements from foreign governments, multilateral agencies and others abroad to reduce","page_number":65,"box":{"x":69,"y":725,"width":831,"height":11}},{"id":"1c408e6b-418b-4cb1-bd3e-3ca97ab92e0d","block_type":"box","text":"principal and interest arrearages on their debt. The commitment on the par t of these governments, agencies and","page_number":65,"box":{"x":70,"y":740,"width":805,"height":11}},{"id":"6a3871ec-f873-4ea0-aed1-f3c1c0322541","block_type":"box","text":"others to make such disbursements may be conditioned on the implementation of economic reforms and/or","page_number":65,"box":{"x":69,"y":755,"width":772,"height":11}},{"id":"68b24acb-061d-4c36-bd13-471c66426648","block_type":"box","text":"economic per formance and the timely service of such debtor’s obligations. Failure to implement such reforms,","page_number":65,"box":{"x":69,"y":770,"width":789,"height":12}},{"id":"2b18a137-b47a-4264-a65f-1a953baa6cff","block_type":"box","text":"achieve such levels of economic per formance or repay principal or interest when due may result in the cancellation of","page_number":65,"box":{"x":69,"y":785,"width":839,"height":12}},{"id":"c5165103-33e0-408d-b106-292c2f2c08d9","block_type":"box","text":"such third par ties’ commitments to lend funds to the governmental entity, which may fur ther impair such debtor’s","page_number":65,"box":{"x":69,"y":801,"width":810,"height":11}},{"id":"8acd2246-8d1a-40bd-a763-a102696dd8f4","block_type":"box","text":"ability or willingness to timely service its debts. Consequently, governmental entities may default on their sovereign","page_number":65,"box":{"x":69,"y":816,"width":821,"height":11}},{"id":"cd27d0ca-445e-40ff-b69e-89b413e03891","block_type":"box","text":"debt.","page_number":65,"box":{"x":69,"y":831,"width":34,"height":9}},{"id":"85a4a503-0869-4f94-8933-231dc9c1a4ca","block_type":"box","text":"Holders of sovereign debt may be requested to par ticipate in the rescheduling of such debt and to extend fur ther","page_number":65,"box":{"x":102,"y":853,"width":807,"height":12}},{"id":"837a47dd-fcb1-4f4d-95cc-51b7fc61a6d7","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":65,"box":{"x":70,"y":869,"width":814,"height":11}},{"id":"575a0182-636b-4225-b47e-3a51158a4d2d","block_type":"box","text":"legal remedies for collecting on such debt.","page_number":65,"box":{"x":70,"y":884,"width":300,"height":11}},{"id":"816e9372-5d32-4d45-96ca-898482e022b9","block_type":"box","text":"II-30","page_number":65,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"95580e8f-43f2-436e-ad4a-ced70ef1533f","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":65,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"77e1ba35-227e-496f-a79d-bb3776ee702b","block_type":"box","text":"Withholding Tax Reclaims Risk","page_number":66,"box":{"x":103,"y":45,"width":215,"height":11}},{"id":"5e5b0809-bd4b-42ef-a115-ea04dafceab7","block_type":"box","text":". A Fund may file claims to recover foreign withholding taxes on dividend and","page_number":66,"box":{"x":318,"y":45,"width":542,"height":11}},{"id":"d8055699-0636-437b-978b-6eaf7869c1ea","block_type":"box","text":"interest income (if any) received from issuers in cer tain countries and capital gains on the disposition of stocks or","page_number":66,"box":{"x":70,"y":60,"width":813,"height":11}},{"id":"d68d4f10-da34-4bc4-a42c-0506f79d5db9","block_type":"box","text":"securities where such withholding tax reclaim is possible. Whether or when a Fund will receive a withholding tax","page_number":66,"box":{"x":69,"y":75,"width":795,"height":11}},{"id":"78ea57d2-7a01-4925-ae23-278dc458132d","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":66,"box":{"x":69,"y":90,"width":799,"height":11}},{"id":"d14cf7f9-ebaa-48d0-b4c3-5906a465df04","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":66,"box":{"x":68,"y":105,"width":838,"height":11}},{"id":"e9186e22-d237-4850-a946-55dbc9bdf9f9","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":66,"box":{"x":68,"y":120,"width":807,"height":12}},{"id":"b5a60dc0-f39f-4157-b3ab-5269ecca1c65","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":66,"box":{"x":69,"y":135,"width":814,"height":12}},{"id":"c162563b-1d9a-4726-a83c-6180e5bc2024","block_type":"box","text":"down par tially or in full, which will adversely affect the Fund’s net asset value. Shareholders in a Fund at the time an","page_number":66,"box":{"x":69,"y":150,"width":831,"height":12}},{"id":"01f5b92e-f8b1-4f6d-98f3-4d9af6d76c66","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":66,"box":{"x":69,"y":166,"width":819,"height":11}},{"id":"4e1361ab-9cf3-4ca8-abac-c4064bbe1c82","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":66,"box":{"x":68,"y":181,"width":833,"height":11}},{"id":"eb7aad6d-8653-400e-b850-0b6b2dcf575a","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":66,"box":{"x":69,"y":196,"width":814,"height":11}},{"id":"c12c03be-51db-46e9-bc4b-f72e9039b8a2","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":66,"box":{"x":68,"y":211,"width":835,"height":11}},{"id":"8433d5f0-6e3e-4a67-899d-1f57e125296c","block_type":"box","text":"in the Fund’s net asset value.","page_number":66,"box":{"x":70,"y":226,"width":209,"height":9}},{"id":"9319e86c-e109-4993-9623-d71184feb89a","block_type":"box","text":"U.S. Economic Trading Par tners Risk.","page_number":66,"box":{"x":103,"y":249,"width":263,"height":11}},{"id":"0a88deab-ce57-4d28-9ade-c26a48958209","block_type":"box","text":"The United States is a significant, and in some cases the most significant,","page_number":66,"box":{"x":372,"y":249,"width":532,"height":11}},{"id":"14ff0312-0ecb-4a4f-b961-93cc0b8dd4c9","block_type":"box","text":"trading par tner of, or foreign investor in, cer tain countries in which a Fund may invest. As a result, economic","page_number":66,"box":{"x":68,"y":264,"width":773,"height":11}},{"id":"360e3957-730a-4703-bce2-cfe6bb528577","block_type":"box","text":"conditions of such countries may be par ticularly affected by changes in the U.S. economy. A decrease in U.S. impor ts","page_number":66,"box":{"x":69,"y":279,"width":839,"height":11}},{"id":"b56bcb28-9c2f-4532-b6c7-765506387f8d","block_type":"box","text":"or expor ts, new trade and financial regulations or tariffs, changes in the U.S. dollar exchange rate or an economic","page_number":66,"box":{"x":69,"y":294,"width":812,"height":11}},{"id":"147ea18b-6854-4d4d-ae47-951c12b84f02","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":66,"box":{"x":69,"y":309,"width":803,"height":11}},{"id":"1a6e2bc4-6022-4ed4-a6e2-d81ab649fe8d","block_type":"box","text":"result, securities to which the Fund has exposure. Circumstances could arise that could prevent the timely payment","page_number":66,"box":{"x":69,"y":324,"width":824,"height":11}},{"id":"c86f1ad4-d5b9-4e47-a7e9-6e6c2c15ffbe","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":66,"box":{"x":69,"y":339,"width":819,"height":12}},{"id":"a71436c0-1e11-4444-b1de-42936ded29ea","block_type":"box","text":"would result in substantial negative consequences for the U.S. economy and the global financial system.","page_number":66,"box":{"x":68,"y":355,"width":746,"height":11}},{"id":"584e6d98-101c-4b10-aaa2-ca9cceb32014","block_type":"box","text":"There are strained relations between the United States and a number of foreign countries, including traditional","page_number":66,"box":{"x":101,"y":377,"width":787,"height":12}},{"id":"b6dca507-9c96-4513-9e62-7a5d01a107bd","block_type":"box","text":"allies, such as cer tain European countries, and historical adversaries, such as Nor th Korea, Iran, China and Russia.","page_number":66,"box":{"x":69,"y":392,"width":827,"height":11}},{"id":"028d4c92-924d-41cc-ab24-4f782203c597","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":66,"box":{"x":70,"y":407,"width":817,"height":12}},{"id":"c604519a-6d86-4c29-9110-f68fdd1bef74","block_type":"box","text":"United States for trade. The United States has also experienced increased internal unrest and discord. If these","page_number":66,"box":{"x":70,"y":423,"width":791,"height":11}},{"id":"0ad47ce2-50a3-430b-9711-496d671cc719","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":66,"box":{"x":68,"y":438,"width":803,"height":11}},{"id":"3c61d7c4-2f77-492b-a3f2-0085265bf167","block_type":"box","text":"Fund may invest.","page_number":66,"box":{"x":70,"y":453,"width":117,"height":11}},{"id":"bce14b91-1818-4c48-93ee-3ad7f93d8f87","block_type":"box","text":"Funding Agreements.","page_number":66,"box":{"x":102,"y":476,"width":154,"height":11}},{"id":"471203b3-7a52-4178-929d-0db2212972a4","block_type":"box","text":"Cer tain Funds may invest in Guaranteed Investment Contracts and similar funding","page_number":66,"box":{"x":262,"y":475,"width":584,"height":12}},{"id":"e5807899-19a7-4554-b043-bfdf2aa730a5","block_type":"box","text":"agreements. In connection with these investments, a Fund makes cash contributions to a deposit fund of an","page_number":66,"box":{"x":69,"y":491,"width":773,"height":11}},{"id":"9cb914fb-6334-46aa-a29e-0770999013fe","block_type":"box","text":"insurance company’s general account. The insurance company then credits to the Fund on a monthly basis","page_number":66,"box":{"x":70,"y":506,"width":761,"height":11}},{"id":"9825d2af-1e02-411e-a5fe-414c8f780d7e","block_type":"box","text":"guaranteed interest, which is based on an index. The funding agreements provide that this guaranteed interest will","page_number":66,"box":{"x":68,"y":521,"width":817,"height":11}},{"id":"00b5f93e-50a8-40a5-a05f-7eb40dfff136","block_type":"box","text":"not be less than a cer tain minimum rate. The purchase price paid for a funding agreement becomes par t of the","page_number":66,"box":{"x":69,"y":536,"width":794,"height":11}},{"id":"3afba212-b245-47af-b9bc-fa4c76d7f7d7","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":66,"box":{"x":68,"y":551,"width":839,"height":11}},{"id":"06a9428d-b0fb-4659-bc55-372534d63d7a","block_type":"box","text":"Generally, funding agreements are not assignable or transferable without the permission of the issuing insurance","page_number":66,"box":{"x":69,"y":566,"width":806,"height":11}},{"id":"97bacb56-7b45-4535-aca6-7ce06e425297","block_type":"box","text":"companies, and an active secondary market in some funding agreements does not currently exist.","page_number":66,"box":{"x":69,"y":581,"width":700,"height":12}},{"id":"70f8c72a-336e-44fb-a0bc-6a7b9e1a1528","block_type":"box","text":"Guarantees.","page_number":66,"box":{"x":102,"y":604,"width":87,"height":9}},{"id":"af7a0cca-be23-4989-92de-fcb881af9869","block_type":"box","text":"A Fund may purchase securities which contain guarantees issued by an entity separate from the","page_number":66,"box":{"x":194,"y":604,"width":685,"height":11}},{"id":"44578844-a70e-4f4a-bb62-13b18e47d040","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":66,"box":{"x":70,"y":619,"width":797,"height":11}},{"id":"4825120c-b785-4d2c-a95a-1de7f5eda707","block_type":"box","text":"payment obligations under a security if the issuer is unable to do so.","page_number":66,"box":{"x":70,"y":634,"width":488,"height":12}},{"id":"96a78a9e-eeac-46a2-9f46-ab59824ba15d","block_type":"box","text":"Illiquid Investments.","page_number":66,"box":{"x":102,"y":657,"width":146,"height":11}},{"id":"aeeb594f-24c3-4c75-93f7-bc7c0391bb17","block_type":"box","text":"Each Fund may not acquire any illiquid investment if, immediately after the acquisition, a","page_number":66,"box":{"x":255,"y":657,"width":630,"height":11}},{"id":"4cff458f-3e89-4b67-b97d-b8f925609f12","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":66,"box":{"x":70,"y":672,"width":787,"height":11}},{"id":"32215f08-f37d-4bf8-8047-da73e4003de9","block_type":"box","text":"investment that a Fund reasonably expects cannot be sold or disposed of in current market conditions in seven","page_number":66,"box":{"x":70,"y":687,"width":792,"height":11}},{"id":"54303b31-2278-4119-bd5d-f8ec939bf1ed","block_type":"box","text":"calendar days or less without the sale or disposition significantly changing the market value of the investment. Liquid","page_number":66,"box":{"x":69,"y":702,"width":834,"height":12}},{"id":"4844ecfd-37a6-4519-8264-c515c27d0f8b","block_type":"box","text":"investments may become illiquid after purchase by a Fund, par ticularly during periods of market turmoil. There can be","page_number":66,"box":{"x":70,"y":717,"width":838,"height":12}},{"id":"24b2255d-60e7-42ca-96c0-59dea4e6b36a","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":66,"box":{"x":69,"y":732,"width":824,"height":12}},{"id":"156fd25f-99ae-43b3-a378-a1eb8ed2b9df","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":66,"box":{"x":69,"y":748,"width":838,"height":11}},{"id":"807b8bc1-e2d1-47f8-948b-e44f4fa0cbd2","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":66,"box":{"x":70,"y":763,"width":816,"height":11}},{"id":"1b0d6aea-a413-4b46-a15f-ab5b1ee081c5","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":66,"box":{"x":68,"y":778,"width":832,"height":11}},{"id":"0961ad22-b51e-484e-8d05-321777760397","block_type":"box","text":"Fund is limited in its ability to dispose of illiquid investments during periods when shareholders are redeeming or","page_number":66,"box":{"x":70,"y":793,"width":803,"height":11}},{"id":"6af6087e-46ab-4595-a2f9-37b94ce7e9d6","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":66,"box":{"x":69,"y":808,"width":817,"height":11}},{"id":"7850634e-5e61-4c8d-ae26-a4d3136f14ff","block_type":"box","text":"meet redemption requests and illiquid securities will become a larger por tion of the Fund’s holdings. If illiquid","page_number":66,"box":{"x":69,"y":823,"width":781,"height":12}},{"id":"cc6868ee-a0b6-4f36-9ae2-078925f21021","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":66,"box":{"x":70,"y":838,"width":822,"height":12}},{"id":"f669b9b9-38c2-4f15-bfc5-b86cbf411c4f","block_type":"box","text":"defined below) will require that cer tain remedial actions be taken. Illiquid investments may trade at a discount from","page_number":66,"box":{"x":69,"y":853,"width":822,"height":12}},{"id":"ad09867d-2242-4b13-9cb7-397f443c6b05","block_type":"box","text":"comparable liquid investments. Investment of a Fund’s assets in illiquid investments may restrict the ability of the","page_number":66,"box":{"x":69,"y":869,"width":813,"height":11}},{"id":"308ca37a-efaf-4b93-9dff-d2d51b9ca4d8","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":66,"box":{"x":70,"y":884,"width":814,"height":11}},{"id":"c53d04e8-3cb8-4d04-932b-d755895c7d60","block_type":"box","text":"market oppor tunities. The risks associated with illiquidity will be par ticularly acute where a Fund’s operations require","page_number":66,"box":{"x":69,"y":899,"width":833,"height":11}},{"id":"655f896b-db0a-4ad7-ac23-28b6e0ee42a9","block_type":"box","text":"II-31","page_number":66,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7c5c60bb-b0e5-4646-88f9-bea2e1b13b8f","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":66,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"44fcfeae-eb2c-4113-948c-4401cf3cdd00","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":67,"box":{"x":69,"y":45,"width":801,"height":11}},{"id":"01bdfcba-f1a6-4207-a785-35dc833c76f2","block_type":"box","text":"shor t-term cash requirements or incurring capital losses on the sale of illiquid investments.","page_number":67,"box":{"x":69,"y":60,"width":651,"height":11}},{"id":"c8491790-f323-4905-bafe-104b0ebcac4a","block_type":"box","text":"Index Funds.","page_number":67,"box":{"x":102,"y":83,"width":91,"height":8}},{"id":"fcb2b836-4617-4d62-b206-04b7920801fb","block_type":"box","text":"Cash Flows; Expenses.","page_number":67,"box":{"x":102,"y":105,"width":162,"height":11}},{"id":"fbcf97c9-0b70-4bdd-8cd5-a1dc5dd45bf1","block_type":"box","text":"The ability of each Fund to satisfy its investment objective depends to some extent on","page_number":67,"box":{"x":270,"y":105,"width":613,"height":11}},{"id":"8d16d2cf-3143-44f9-824a-9676d164233a","block_type":"box","text":"the Manager’s ability to manage cash flow (primarily from purchases and redemptions and distributions from the","page_number":67,"box":{"x":68,"y":120,"width":803,"height":12}},{"id":"c9f31663-4c4a-4a69-b644-e0212110945a","block_type":"box","text":"Fund’s investments). The Manager will make investment changes to a Fund’s por tfolio to accommodate cash flow","page_number":67,"box":{"x":70,"y":135,"width":810,"height":12}},{"id":"c1349f9c-a30c-46f4-940c-34ba78a1bc20","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":67,"box":{"x":68,"y":150,"width":823,"height":12}},{"id":"1e4d1c2b-63a9-4bf9-a21a-2b71ee6a5dd4","block_type":"box","text":"the investment per formance of each index is a hypothetical number which does not take into account brokerage","page_number":67,"box":{"x":68,"y":166,"width":799,"height":11}},{"id":"1642cc75-6256-410b-9ef0-e9cb1cf9c422","block_type":"box","text":"commissions and other transaction costs, custody and other costs of investing, and any incremental operating costs","page_number":67,"box":{"x":69,"y":181,"width":831,"height":11}},{"id":"05e504d8-14f1-4230-a617-bbf36facbd67","block_type":"box","text":"(","page_number":67,"box":{"x":69,"y":196,"width":3,"height":11}},{"id":"287507cd-74ce-4362-a106-9e685b9b3789","block_type":"box","text":"e.g.","page_number":67,"box":{"x":74,"y":197,"width":25,"height":10}},{"id":"7941dee4-8e2a-4af5-a1b6-aa5c3ddc6d21","block_type":"box","text":", transfer agency and accounting costs) that will be borne by the Funds. Finally, since each Fund seeks to","page_number":67,"box":{"x":101,"y":196,"width":749,"height":11}},{"id":"6f645197-c2f6-445b-972c-11a7a62de12c","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":67,"box":{"x":69,"y":211,"width":774,"height":11}},{"id":"e4c3418e-85a2-4d0f-96a0-5fddad1a9fbe","block_type":"box","text":"par ticular security as an investment.","page_number":67,"box":{"x":70,"y":226,"width":258,"height":11}},{"id":"24377a78-745b-48b0-bdda-b910a6281ff0","block_type":"box","text":"Tracking Error Risk","page_number":67,"box":{"x":103,"y":249,"width":132,"height":11}},{"id":"20e95156-9a9f-4122-aa11-4d5a0f777b9d","block_type":"box","text":". A Fund may be subject to tracking error, which is the divergence of the Fund’s per formance","page_number":67,"box":{"x":236,"y":249,"width":658,"height":11}},{"id":"d9b3756c-adc0-4f80-a7e5-4a451c230745","block_type":"box","text":"from that of the Underlying Index. Tracking error may occur because of differences between the securities and other","page_number":67,"box":{"x":68,"y":264,"width":827,"height":11}},{"id":"5f84cd66-df1b-48ec-9350-89060fea60ce","block_type":"box","text":"instruments held in the Fund’s por tfolio and those included in the Underlying Index, pricing differences (including, as","page_number":67,"box":{"x":70,"y":279,"width":830,"height":11}},{"id":"995c6a0d-2ade-4320-92c2-92629c4ebfaf","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":67,"box":{"x":69,"y":294,"width":827,"height":11}},{"id":"48dd86ab-5849-482c-b399-0ddea42f9d6b","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":67,"box":{"x":68,"y":309,"width":797,"height":11}},{"id":"ea5d9655-bbf1-4b3e-a477-f8ed7ecd2a03","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":67,"box":{"x":70,"y":324,"width":787,"height":12}},{"id":"0755ef5d-c475-4d01-a81a-a82cc8733ce7","block_type":"box","text":"distributions, interest, the requirements to maintain pass-through tax treatment, por tfolio transactions carried out to","page_number":67,"box":{"x":69,"y":339,"width":830,"height":12}},{"id":"5119ea65-0d0d-449b-b9a2-b7c57957ed28","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":67,"box":{"x":69,"y":355,"width":838,"height":11}},{"id":"9181e2bf-104b-4d80-81df-72d5af0b833d","block_type":"box","text":"complying with various new or existing regulatory requirements. These risks may be heightened during times of","page_number":67,"box":{"x":69,"y":370,"width":791,"height":11}},{"id":"0a747eea-ff2a-47c9-902d-5d6b6258f805","block_type":"box","text":"increased market volatility or other unusual market conditions. In addition, tracking error may result because the","page_number":67,"box":{"x":70,"y":385,"width":801,"height":11}},{"id":"ccb643bb-c162-4c31-a31b-fa13efab8e45","block_type":"box","text":"Fund incurs fees and expenses, while the Underlying Index does not.","page_number":67,"box":{"x":70,"y":400,"width":487,"height":11}},{"id":"6030a25e-5f18-43a7-84b8-cb255409063e","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":67,"box":{"x":101,"y":423,"width":799,"height":11}},{"id":"9477ddb9-14a1-4c53-b946-9a8e265dd3d3","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":67,"box":{"x":69,"y":438,"width":803,"height":11}},{"id":"570fc5be-5621-4740-b80d-68fc07efcd96","block_type":"box","text":"price growth that does not appear to be suppor ted by publicly available information on the business and assets of","page_number":67,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"5fc22bb8-b8ab-4368-9e21-d93b37f18607","block_type":"box","text":"the issuer, unusual or significant shor t interest or lending activity, negative sentiment, suspended trading or incorrect","page_number":67,"box":{"x":68,"y":468,"width":838,"height":11}},{"id":"87d3237d-dd69-4ee8-aa79-f2a38ae780f4","block_type":"box","text":"free-float calculations, which could be indicators of possible irregularities, miscalculations or even fraud). If it","page_number":67,"box":{"x":68,"y":483,"width":778,"height":11}},{"id":"3abda202-7770-4155-8ffe-3d0d9d7090ce","block_type":"box","text":"identifies such behavior, the Manager may, where appropriate, aler t the index provider as to the alleged issue. The","page_number":67,"box":{"x":70,"y":498,"width":816,"height":11}},{"id":"fdd7cb28-f828-427c-8321-69d2c1edfab1","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":67,"box":{"x":70,"y":513,"width":836,"height":11}},{"id":"4164c303-f614-4112-aecb-d8902b03327d","block_type":"box","text":"the rebalancing of its index. 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Bloomberg has no obligation to take the needs of any par ticular Fund or its par ticipants or any","page_number":69,"box":{"x":70,"y":60,"width":802,"height":11}},{"id":"3266517c-fdaf-4004-8040-737a2f805937","block_type":"box","text":"other product or person into consideration in determining, composing or calculating a Bloomberg Index.","page_number":69,"box":{"x":69,"y":75,"width":735,"height":11}},{"id":"42c69791-07ad-4f47-afc0-8714867a8451","block_type":"box","text":"ICE BofA Indexes.","page_number":69,"box":{"x":102,"y":98,"width":124,"height":9}},{"id":"6a31b029-fb9f-4add-96ca-c235a88b16b2","block_type":"box","text":"No Fund is promoted, sponsored or endorsed by, nor in any way affiliated with Intercontinental","page_number":69,"box":{"x":233,"y":98,"width":670,"height":11}},{"id":"480f48a6-5d95-4d83-9508-be98bb1fb954","block_type":"box","text":"Exchange, Inc. and its affiliates (collectively, “ICE”) or Bank of America or its affiliates (collectively, “BofA”). BofA is","page_number":69,"box":{"x":70,"y":113,"width":819,"height":11}},{"id":"8fc80789-c1f4-409d-87c6-65b57e378589","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":69,"box":{"x":69,"y":128,"width":820,"height":11}},{"id":"5198720e-3b65-494c-82a4-74964f0cf287","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":69,"box":{"x":69,"y":143,"width":793,"height":11}},{"id":"9bcc6c2b-2a59-49ce-8f94-eae33225d25a","block_type":"box","text":"publications and ICE and BofA make no representation or warranty, express or implied, as to their accuracy, or","page_number":69,"box":{"x":70,"y":158,"width":785,"height":11}},{"id":"177b9984-91ba-4772-8b2d-5668149ec7cc","block_type":"box","text":"completeness, or otherwise.","page_number":69,"box":{"x":69,"y":173,"width":202,"height":11}},{"id":"dcd07265-9fbf-413b-b8cb-1ca288362320","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":69,"box":{"x":102,"y":196,"width":779,"height":11}},{"id":"4dcd54ae-91ae-49da-8bb4-fb82f9bf535d","block_type":"box","text":"BofA Index. ICE has no obligation to take the needs of any par ticular Fund or its par ticipants or any other product or","page_number":69,"box":{"x":70,"y":211,"width":825,"height":11}},{"id":"ec8a71c9-0fb3-4c0e-b5b3-4e18ac324dd8","block_type":"box","text":"person into consideration in determining, composing or calculating an ICE BofA Index.","page_number":69,"box":{"x":70,"y":226,"width":608,"height":11}},{"id":"076136b6-e92e-4e71-bdfc-f6bb9b90e145","block_type":"box","text":"Indexed and Inverse Securities.","page_number":69,"box":{"x":102,"y":249,"width":228,"height":9}},{"id":"75e06102-9375-4eb4-a6e1-5893f9eeb050","block_type":"box","text":"A Fund may invest in securities that provide a potential return based on a","page_number":69,"box":{"x":336,"y":249,"width":523,"height":11}},{"id":"30eb925c-0325-481c-b7b5-b0416f10be46","block_type":"box","text":"par ticular index of value or interest rates. For example, a Fund may invest in securities that pay interest based on an","page_number":69,"box":{"x":70,"y":264,"width":831,"height":11}},{"id":"6cbfdf70-0522-4d37-bce7-1c2bc85f8f9e","block_type":"box","text":"index of interest rates. The principal amount payable upon maturity of cer tain securities also may be based on the","page_number":69,"box":{"x":70,"y":279,"width":814,"height":11}},{"id":"bce93253-f2ba-42f6-aefb-9c892b0703af","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":69,"box":{"x":68,"y":294,"width":830,"height":11}},{"id":"8bee88d2-3d27-40e7-ab5a-196dc886c375","block_type":"box","text":"be subject to risk with respect to the value of the par ticular index: that is, if the value of the index falls, the value of","page_number":69,"box":{"x":69,"y":309,"width":827,"height":11}},{"id":"a01a1baf-1c94-491e-bacb-a0bd662c6ff0","block_type":"box","text":"the indexed securities owned by the Fund will fall. Interest and principal payable on cer tain securities may also be","page_number":69,"box":{"x":68,"y":324,"width":812,"height":11}},{"id":"125d2875-0c39-4d6a-b638-454a20487276","block_type":"box","text":"based on relative changes among par ticular indices. A Fund may also invest in so-called “inverse floating obligations”","page_number":69,"box":{"x":69,"y":339,"width":837,"height":12}},{"id":"3ef93241-a09d-405c-b555-912cef120931","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":69,"box":{"x":69,"y":355,"width":781,"height":11}},{"id":"ea1fa514-529c-418e-9606-f3f6eb1fc1cd","block_type":"box","text":"periodically by a Dutch auction, a remarketing agent, or by reference to a shor t-term tax-exempt interest rate index). A","page_number":69,"box":{"x":70,"y":370,"width":838,"height":11}},{"id":"6c9430a2-2687-497a-ae83-fa14aa791c19","block_type":"box","text":"Fund may purchase synthetically-created inverse floating rate bonds evidenced by custodial or trust receipts.","page_number":69,"box":{"x":70,"y":385,"width":771,"height":11}},{"id":"de68483b-6ff0-48c2-a658-4eb706cef3d9","block_type":"box","text":"Generally, income on inverse floating rate bonds will decrease when interest rates increase, and will increase when","page_number":69,"box":{"x":69,"y":400,"width":820,"height":11}},{"id":"9ac3660f-ab2d-4f20-944f-e23d39883192","block_type":"box","text":"interest rates decrease. Such securities have the effect of providing a degree of investment leverage, since they may","page_number":69,"box":{"x":70,"y":415,"width":835,"height":11}},{"id":"1a5ccb31-c35a-4435-a8af-107c9636adef","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":69,"box":{"x":70,"y":430,"width":817,"height":11}},{"id":"76b842f0-933b-4202-8674-0407783d1ea3","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":69,"box":{"x":69,"y":445,"width":829,"height":12}},{"id":"03683b5a-0766-40be-87df-cec69feb9f4f","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":69,"box":{"x":69,"y":460,"width":804,"height":12}},{"id":"786b63bc-15af-43a4-b70d-4882a4f07ba6","block_type":"box","text":"seek to limit the volatility of these securities, a Fund may purchase inverse floating obligations that have shor ter-term","page_number":69,"box":{"x":69,"y":475,"width":838,"height":12}},{"id":"c025bd9a-8259-495e-808c-0f237f8c14e8","block_type":"box","text":"maturities or that contain limitations on the extent to which the interest rate may vary. Cer tain investments in such","page_number":69,"box":{"x":69,"y":491,"width":819,"height":11}},{"id":"c3cc1c60-e7ad-4dc5-b55e-8cd0f905f326","block_type":"box","text":"obligations may be illiquid. The Manager believes that indexed and inverse floating obligations represent flexible","page_number":69,"box":{"x":69,"y":506,"width":798,"height":11}},{"id":"7b63004b-3809-46a4-8d7d-6e692b559179","block_type":"box","text":"por tfolio management instruments for a Fund that allow the Fund to seek potential investment rewards, hedge other","page_number":69,"box":{"x":70,"y":521,"width":829,"height":11}},{"id":"1de1ec12-0262-4efb-b960-c11d42cd321b","block_type":"box","text":"por tfolio positions or vary the degree of investment leverage relatively efficiently under different market conditions. A","page_number":69,"box":{"x":70,"y":536,"width":834,"height":11}},{"id":"a469c495-a337-48be-9fc5-fc8a9896b5a1","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":69,"box":{"x":70,"y":551,"width":839,"height":11}},{"id":"3015be59-591e-4726-8d3d-fc9d09030c22","block_type":"box","text":"hedging purposes, indexed and inverse securities involve correlation risk. Fur thermore, where such a security","page_number":69,"box":{"x":69,"y":566,"width":781,"height":11}},{"id":"8e2c6ebb-5d9d-4eed-99ff-c5ebdaad5916","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":69,"box":{"x":70,"y":581,"width":812,"height":12}},{"id":"9db44221-e6a3-43ec-9c3f-034fe6f2f929","block_type":"box","text":"may be required to pay substantial additional margin to maintain the position.","page_number":69,"box":{"x":69,"y":597,"width":553,"height":11}},{"id":"ca7aa271-228b-417f-9bf2-d31624dea265","block_type":"box","text":"The Funds may invest up to 10% of their total assets in leveraged inverse floating rate debt instruments","page_number":69,"box":{"x":101,"y":619,"width":741,"height":11}},{"id":"8a338687-ddf3-422c-8561-bcdab3ed0a09","block_type":"box","text":"(“inverse floaters”). Inverse floaters are securities the potential of which is inversely related to changes in interest","page_number":69,"box":{"x":69,"y":634,"width":815,"height":12}},{"id":"2109750c-458a-43ae-828a-170b9dbc67a4","block_type":"box","text":"rates. In general, the return on inverse floaters will decrease when shor t-term interest rates increase and increase","page_number":69,"box":{"x":69,"y":649,"width":817,"height":12}},{"id":"5e16e0b1-2db2-44d2-ba7c-54f2b3893bf8","block_type":"box","text":"when shor t-term rates decrease. Municipal tender option bonds, both taxable and tax-exempt, which may include","page_number":69,"box":{"x":68,"y":665,"width":805,"height":11}},{"id":"d45aaaf9-f58f-4b9f-bf4a-e4182b1cf88a","block_type":"box","text":"inverse floating rate debt instruments, (including residual interests thereon) are excluded from this 10% limitation.","page_number":69,"box":{"x":70,"y":680,"width":813,"height":11}},{"id":"265ec482-ff3e-41d0-8eb2-47d156a2b2f2","block_type":"box","text":"Inflation Risk.","page_number":69,"box":{"x":102,"y":702,"width":100,"height":9}},{"id":"0c2944c8-0a84-4990-bcea-cf3a4c97b536","block_type":"box","text":"Like all funds, the Funds are subject to inflation risk. Inflation risk is the risk that the present","page_number":69,"box":{"x":209,"y":702,"width":663,"height":11}},{"id":"02a93bd8-7f36-4f49-9142-a6bc3846b08e","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":69,"box":{"x":68,"y":717,"width":820,"height":12}},{"id":"a480190d-6cb1-49b6-aa3f-783e28897d06","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":69,"box":{"x":70,"y":732,"width":792,"height":11}},{"id":"d52c66ef-cf30-41d6-8cb3-fe0def1f55aa","block_type":"box","text":"Inflation rates may change frequently and significantly due to a number of potential factors, including, among others,","page_number":69,"box":{"x":70,"y":748,"width":829,"height":11}},{"id":"b1599575-6b25-4cfa-8eeb-cb1ca8ba8b4f","block_type":"box","text":"unexpected economic shifts or changes in fiscal or monetary policies.","page_number":69,"box":{"x":69,"y":763,"width":497,"height":11}},{"id":"bb8f7ae1-d457-449d-9a76-687f91c3fb7e","block_type":"box","text":"Initial Public Offering (“IPO”) Risk.","page_number":69,"box":{"x":102,"y":785,"width":253,"height":12}},{"id":"0277eae0-0fb6-40c5-a3cd-c900d682c033","block_type":"box","text":"The volume of IPOs and the levels at which the newly issued stocks trade in","page_number":69,"box":{"x":361,"y":785,"width":540,"height":12}},{"id":"e51abf08-34e8-498a-94b6-4bb8775c9c62","block_type":"box","text":"the secondary market are affected by the per formance of the stock market overall. If IPOs are brought to the market,","page_number":69,"box":{"x":68,"y":801,"width":836,"height":11}},{"id":"a48b6923-5996-4a44-b642-f2a01a715508","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":69,"box":{"x":69,"y":816,"width":815,"height":11}},{"id":"74d6fcb4-6c43-41a4-883a-41c219e08725","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":69,"box":{"x":69,"y":831,"width":795,"height":11}},{"id":"c853c157-c3a8-4295-a4fd-49356bdee899","block_type":"box","text":"securities involved in IPOs are often subject to greater and more unpredictable price changes than more established","page_number":69,"box":{"x":69,"y":846,"width":829,"height":11}},{"id":"4ed683a8-249f-47a6-a6bf-f829d3b394e4","block_type":"box","text":"stocks. IPOs have the potential to produce substantial gains. A Fund may hold shares from an IPO for only a shor t","page_number":69,"box":{"x":69,"y":861,"width":814,"height":11}},{"id":"33b16cdc-ee08-4164-a4c0-88e50a9dafd5","block_type":"box","text":"period of time given possible price volatility. This may result in increased por tfolio turnover and expenses, such as","page_number":69,"box":{"x":70,"y":876,"width":813,"height":11}},{"id":"36e3e718-1ab4-47f0-8d9a-83ad0d6606e1","block_type":"box","text":"commissions and transaction costs, and potentially result in taxable gains that the Fund will subsequently distribute","page_number":69,"box":{"x":69,"y":891,"width":828,"height":12}},{"id":"d7a71396-b7bc-4945-b836-8ac2fe95d9ad","block_type":"box","text":"to shareholders. There is no assurance that any Fund will have access to profitable IPOs and therefore investors","page_number":69,"box":{"x":68,"y":906,"width":802,"height":12}},{"id":"4d95a705-5207-403b-8750-0529ca4baa1f","block_type":"box","text":"II-34","page_number":69,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"683611a9-9785-4854-9d2e-21db5f95ffa1","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":69,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"86b205f8-b7de-487e-b93a-0bd42a56e5e8","block_type":"box","text":"should not rely on any past gains from IPOs as an indication of future per formance. The investment per formance of a","page_number":70,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"9e792d2d-dae2-40c7-8a3a-2aaf8962747a","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":70,"box":{"x":70,"y":60,"width":832,"height":11}},{"id":"536e7ef1-4b98-4e5a-96df-4c77e0b060bf","block_type":"box","text":"is able to do so. In addition, as a Fund increases in size, the impact of IPOs on its per formance will generally","page_number":70,"box":{"x":70,"y":75,"width":777,"height":11}},{"id":"496bb769-8de2-4e44-ac01-9c3f775eb9c0","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":70,"box":{"x":69,"y":90,"width":810,"height":11}},{"id":"26d80907-a551-4642-88b4-6fb6acb73251","block_type":"box","text":"market capitalizations. Securities issued in IPOs have no trading history, and information about the companies may","page_number":70,"box":{"x":69,"y":105,"width":823,"height":11}},{"id":"545340a6-177f-4f72-879b-c59a4b28fddb","block_type":"box","text":"be available for very limited periods.","page_number":70,"box":{"x":69,"y":120,"width":257,"height":11}},{"id":"77bef5a4-944f-4448-b4b3-c6800bc5dc81","block_type":"box","text":"Investment in Emerging Markets.","page_number":70,"box":{"x":102,"y":143,"width":242,"height":11}},{"id":"d96ba39f-a159-4f91-80ee-515bdde475a3","block_type":"box","text":"General.","page_number":70,"box":{"x":102,"y":166,"width":58,"height":9}},{"id":"1bc018ce-bf3c-4543-b93a-3714b628ed13","block_type":"box","text":"Cer tain Funds may invest in the securities of issuers domiciled in various countries with emerging capital","page_number":70,"box":{"x":102,"y":188,"width":748,"height":12}},{"id":"739aa047-bb67-4d7a-9b0e-f42ef265b0eb","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":70,"box":{"x":69,"y":204,"width":840,"height":11}},{"id":"ac032bde-f2f3-4d5c-af4e-ab5675299887","block_type":"box","text":"that is (i) generally recognized to be an emerging market country by the international financial community, such as","page_number":70,"box":{"x":68,"y":218,"width":813,"height":12}},{"id":"e8d02c84-5e15-4d30-8aef-77fb72158e38","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":70,"box":{"x":68,"y":234,"width":836,"height":11}},{"id":"d1553278-7550-404b-bdf0-ff840cf36ac7","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":70,"box":{"x":69,"y":249,"width":839,"height":11}},{"id":"0e97116a-f3d1-465d-8b82-f29f04021bc6","block_type":"box","text":"index that is generally representative of emerging markets. Countries with emerging markets can be found in regions","page_number":70,"box":{"x":70,"y":264,"width":831,"height":11}},{"id":"b5e0dfc4-a049-4f93-91f5-065358dbc418","block_type":"box","text":"such as Asia, Latin America, Eastern Europe and Africa.","page_number":70,"box":{"x":69,"y":279,"width":396,"height":11}},{"id":"0cec17de-7e20-4637-83c8-f83f60716cf7","block_type":"box","text":"Investments in the securities of issuers domiciled in countries with emerging capital markets involve cer tain","page_number":70,"box":{"x":102,"y":302,"width":770,"height":11}},{"id":"503a7a04-c4a3-40c3-a70a-cd1aeec6cbde","block_type":"box","text":"additional risks that do not generally apply to investments in securities of issuers in more developed capital markets,","page_number":70,"box":{"x":69,"y":317,"width":835,"height":11}},{"id":"b8bd074b-a38b-45ce-8e3b-19026609e4f0","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":70,"box":{"x":69,"y":332,"width":828,"height":11}},{"id":"499d7bdb-bd45-4553-b6ff-737c15f4a1ea","block_type":"box","text":"securities, as compared to securities of comparable issuers in more developed capital markets; (ii) uncer tain","page_number":70,"box":{"x":69,"y":347,"width":779,"height":11}},{"id":"3079f9cc-356a-4537-9011-61dd45bdd4cf","block_type":"box","text":"national policies and social, political and economic instability, increasing the potential for expropriation of assets,","page_number":70,"box":{"x":69,"y":362,"width":809,"height":11}},{"id":"ab812ada-e4f2-4126-bf04-9050210e4033","block_type":"box","text":"confiscatory taxation, high rates of inflation or unfavorable diplomatic developments; (iii) possible fluctuations in","page_number":70,"box":{"x":69,"y":377,"width":800,"height":12}},{"id":"73b4a6b2-b757-43bb-a73a-ae763142590e","block_type":"box","text":"exchange rates, differing legal systems and the existence or possible imposition of exchange controls, custodial","page_number":70,"box":{"x":69,"y":392,"width":800,"height":12}},{"id":"9d3a435e-7947-4df9-b284-f9f63cfff76a","block_type":"box","text":"restrictions or other foreign or U.S. Governmental laws or restrictions applicable to such investments; (iv) national","page_number":70,"box":{"x":69,"y":407,"width":811,"height":12}},{"id":"09b68a06-a96a-4863-b164-8c13b3dda3a8","block_type":"box","text":"policies that may limit a Fund’s investment oppor tunities such as restrictions on investment in issuers or industries","page_number":70,"box":{"x":70,"y":423,"width":824,"height":11}},{"id":"e4e1df42-950e-40fe-ba56-9fe03b56675d","block_type":"box","text":"deemed sensitive to national interests; and (v) the lack or relatively early development of legal structures governing","page_number":70,"box":{"x":69,"y":438,"width":823,"height":11}},{"id":"c0d34bef-39eb-4100-9ed2-9a75130eabcb","block_type":"box","text":"private and foreign investments and private proper ty. In addition to withholding taxes on investment income, some","page_number":70,"box":{"x":70,"y":453,"width":813,"height":11}},{"id":"54d7152d-72ee-4b8d-8bb6-0d8c5142b6ed","block_type":"box","text":"countries with emerging markets may impose differential capital gains taxes on foreign investors.","page_number":70,"box":{"x":69,"y":468,"width":694,"height":11}},{"id":"640c6a9b-a1c7-4dc7-8f9f-8362774ba3e0","block_type":"box","text":"Political and economic structures in emerging market countries may be undergoing significant evolution and","page_number":70,"box":{"x":102,"y":491,"width":767,"height":11}},{"id":"05915a10-2960-4485-a274-e5bb83cf67ff","block_type":"box","text":"rapid development, and these countries may lack the social, political and economic stability characteristic of more","page_number":70,"box":{"x":69,"y":506,"width":814,"height":11}},{"id":"cc0722a0-4c95-4f62-a424-3cbfd7a97792","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":70,"box":{"x":69,"y":521,"width":792,"height":11}},{"id":"cee0d10d-7d3c-48f1-b576-662ec63dd598","block_type":"box","text":"markets will continue to present viable investment oppor tunities for a Fund. In the past, governments of such nations","page_number":70,"box":{"x":69,"y":536,"width":838,"height":11}},{"id":"f2aafa3e-dbe9-43b2-a831-4270804e0dde","block_type":"box","text":"have expropriated substantial amounts of private proper ty, and most claims of the proper ty owners have never been","page_number":70,"box":{"x":69,"y":551,"width":828,"height":11}},{"id":"fec90106-8ada-4895-b680-1f5aa8076b5a","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":70,"box":{"x":68,"y":566,"width":816,"height":11}},{"id":"c40dd26d-7695-485a-a9d5-3787387bb8c6","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":70,"box":{"x":70,"y":581,"width":802,"height":11}},{"id":"e39ed1d5-b237-4108-81f4-5e2280c2ebfd","block_type":"box","text":"including the risks of nationalization or expropriation of assets, may be heightened. In addition, unanticipated political","page_number":70,"box":{"x":70,"y":596,"width":838,"height":12}},{"id":"a7920a7e-91b5-4661-ad30-c491a0aba359","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":70,"box":{"x":69,"y":612,"width":788,"height":11}},{"id":"0a54910a-82c5-4be9-804a-49bd99b2fce6","block_type":"box","text":"additional investments. The small size and inexperience of the securities markets in cer tain of these countries and","page_number":70,"box":{"x":69,"y":627,"width":819,"height":11}},{"id":"9bbe4e14-b4a0-4672-be55-a0ddc0e68174","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":70,"box":{"x":68,"y":642,"width":838,"height":11}},{"id":"b0aaa64e-c741-4d58-befc-410ce61ce705","block_type":"box","text":"volatile than investments in more established markets.","page_number":70,"box":{"x":68,"y":657,"width":392,"height":9}},{"id":"6ea2081d-6a10-4a79-9dc2-54ec8abf419c","block_type":"box","text":"Also, there may be less publicly available information about issuers in emerging markets than would be available","page_number":70,"box":{"x":101,"y":680,"width":805,"height":11}},{"id":"8b61dc66-5ea0-49dc-bb82-ef4a5e7e31a5","block_type":"box","text":"about issuers in more developed capital markets, and such issuers may not be subject to accounting, auditing and","page_number":70,"box":{"x":69,"y":695,"width":818,"height":11}},{"id":"7076b560-7796-409c-9097-798f0b3e8d76","block_type":"box","text":"financial repor ting standards and requirements comparable to those to which U.S. companies are subject. In cer tain","page_number":70,"box":{"x":68,"y":710,"width":831,"height":11}},{"id":"9c635f55-fa1d-4201-b1de-85fc1cf13341","block_type":"box","text":"countries with emerging capital markets, repor ting standards vary widely. As a result, traditional investment","page_number":70,"box":{"x":69,"y":725,"width":768,"height":11}},{"id":"73ad31e8-f951-44c1-98ca-42d8d1bf3a0b","block_type":"box","text":"measurements used in the United States, such as price/earnings ratios, may not be applicable. Emerging market","page_number":70,"box":{"x":69,"y":740,"width":811,"height":11}},{"id":"79480747-7d06-410b-a90c-9e033107bc9e","block_type":"box","text":"securities may be substantially less liquid than, and more volatile than, those of mature markets, and company","page_number":70,"box":{"x":69,"y":755,"width":795,"height":11}},{"id":"ad7a0ced-3120-41f7-bee5-79fb1d5f979e","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":70,"box":{"x":69,"y":770,"width":814,"height":12}},{"id":"35f611d5-4b27-4ae6-aee3-5c783ad351c4","block_type":"box","text":"acquisition or disposal of securities.","page_number":70,"box":{"x":69,"y":785,"width":257,"height":11}},{"id":"b39c5bfe-3a6b-4e0e-bbea-cc2814bd65bc","block_type":"box","text":"Practices in relation to settlement of securities transactions in emerging markets involve higher risks than those","page_number":70,"box":{"x":102,"y":808,"width":800,"height":11}},{"id":"5fa5299b-bbee-4bf2-9887-ba92ae00f1b2","block_type":"box","text":"in developed markets, in par t because a Fund will need to use brokers and counterpar ties that are less well","page_number":70,"box":{"x":70,"y":823,"width":769,"height":11}},{"id":"43d7fa8f-4e84-4b81-ae5d-b96805481fd9","block_type":"box","text":"capitalized, and custody and registration of assets in some countries may be unreliable. The possibility of fraud,","page_number":70,"box":{"x":69,"y":838,"width":798,"height":12}},{"id":"c8d4fb26-f97b-4013-ae7c-0d615929844d","block_type":"box","text":"negligence, undue influence being exer ted by the issuer or refusal to recognize ownership exists in some emerging","page_number":70,"box":{"x":69,"y":853,"width":819,"height":12}},{"id":"8b782720-b453-46c7-b89d-ac23d734af71","block_type":"box","text":"markets, and, along with other factors, could result in ownership registration being completely lost. A Fund would","page_number":70,"box":{"x":69,"y":869,"width":804,"height":11}},{"id":"f27b2d4d-ccdc-4054-b4bd-aff907f553de","block_type":"box","text":"absorb any loss resulting from such registration problems and may have no successful claim for compensation.","page_number":70,"box":{"x":69,"y":884,"width":794,"height":11}},{"id":"72d75787-7261-442e-8c43-233c35649b2b","block_type":"box","text":"II-35","page_number":70,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"90ae7424-d1b6-4c89-abda-e7cdddc8bf8a","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":70,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c483e835-291e-4aef-bfed-1c799daead5e","block_type":"box","text":"Investment in non-dollar denominated securities including securities from issuers located in emerging market","page_number":71,"box":{"x":102,"y":45,"width":778,"height":11}},{"id":"6db0b866-4fae-4da0-8f31-27ff5e582271","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":71,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"042a800a-cf9c-4234-9f0d-1f6dd9011bed","block_type":"box","text":"foreign currencies pending investment or conversion into U.S. dollars. Some of these instruments may have the","page_number":71,"box":{"x":68,"y":75,"width":797,"height":11}},{"id":"dbecc2d7-78e0-4c98-b16e-aa64c75531cc","block_type":"box","text":"characteristics of futures contracts. In addition, cer tain Funds may engage in foreign currency exchange transactions","page_number":71,"box":{"x":69,"y":90,"width":832,"height":11}},{"id":"a4ff4aa3-4845-4239-92a2-27ba33f8c325","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":71,"box":{"x":68,"y":105,"width":799,"height":11}},{"id":"d62c9740-df6b-4a30-b8cf-0f36a64b9fcf","block_type":"box","text":"per formance. These investments and transactions involving foreign securities, currencies, options (including options","page_number":71,"box":{"x":70,"y":120,"width":829,"height":12}},{"id":"30763de7-7bbe-4902-b023-57b41f1bf6eb","block_type":"box","text":"that relate to foreign currencies), futures, hedging and cross-hedging are described under “Derivatives.”","page_number":71,"box":{"x":68,"y":135,"width":740,"height":12}},{"id":"f189b53e-28d1-4b84-b6f9-9210ddeba33b","block_type":"box","text":"Risks of Investing in Asia-Pacific Countries.","page_number":71,"box":{"x":102,"y":158,"width":305,"height":11}},{"id":"05ecf25d-af64-4ad3-91f3-c6cc1ff2bd43","block_type":"box","text":"In addition to the risks of foreign investing and the risks of investing","page_number":71,"box":{"x":414,"y":158,"width":485,"height":11}},{"id":"3c7634cf-d364-4c23-97c0-3d4280d935bd","block_type":"box","text":"in developing markets, the developing market Asia-Pacific countries in which a Fund may invest are subject to cer tain","page_number":71,"box":{"x":70,"y":173,"width":832,"height":11}},{"id":"40375489-a87e-4ad6-bc18-f5d15ab04414","block_type":"box","text":"additional or specific risks. Cer tain Funds may make substantial investments in Asia-Pacific countries. In many of","page_number":71,"box":{"x":69,"y":188,"width":808,"height":11}},{"id":"1c839e8d-f6be-4e15-9787-ba440af5394b","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":71,"box":{"x":68,"y":203,"width":838,"height":12}},{"id":"027bd1ab-2499-47a4-80d9-82b65a76f487","block_type":"box","text":"representing a limited number of industries, as well as a high concentration of investors and financial intermediaries.","page_number":71,"box":{"x":69,"y":218,"width":834,"height":12}},{"id":"9e88197b-2860-4454-ab62-e08754f48c14","block_type":"box","text":"Many of these markets also may be affected by developments with respect to more established markets in the","page_number":71,"box":{"x":70,"y":234,"width":791,"height":11}},{"id":"59841f7f-2b1e-4cf5-a862-473f46acf8ab","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":71,"box":{"x":69,"y":249,"width":804,"height":11}},{"id":"c8b424de-8266-47b7-8e47-c9b355d83e77","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":71,"box":{"x":69,"y":264,"width":833,"height":11}},{"id":"338d611f-f7bf-48da-86b2-69c3b928ed91","block_type":"box","text":"requirements for open-end investment companies and the restrictions on foreign investment discussed below, result","page_number":71,"box":{"x":69,"y":279,"width":830,"height":11}},{"id":"e9241836-7cee-4172-b810-7901607d4cfd","block_type":"box","text":"in potentially fewer investment oppor tunities for a Fund and may have an adverse impact on the investment","page_number":71,"box":{"x":70,"y":294,"width":766,"height":11}},{"id":"495b17f6-372a-41a0-a700-6d5ea598782e","block_type":"box","text":"per formance of the Fund.","page_number":71,"box":{"x":70,"y":309,"width":179,"height":11}},{"id":"b5d6124c-8704-442a-9b28-b9f7fa50316a","block_type":"box","text":"Many of the developing market Asia-Pacific countries may be subject to a greater degree of economic, political","page_number":71,"box":{"x":102,"y":332,"width":784,"height":11}},{"id":"ff606446-f922-477a-a31a-3358f2d5077c","block_type":"box","text":"and social instability than is the case in the United States and Western European countries. Such instability may","page_number":71,"box":{"x":69,"y":347,"width":803,"height":11}},{"id":"98eecbcd-9c35-403e-b346-be15d1781590","block_type":"box","text":"result from, among other things: (i) authoritarian governments or military involvement in political and economic","page_number":71,"box":{"x":69,"y":362,"width":788,"height":11}},{"id":"dfe83a54-55d6-4f88-8c99-18d88e5787ad","block_type":"box","text":"decision-making, including changes in government through extra-constitutional means; (ii) popular unrest associated","page_number":71,"box":{"x":69,"y":377,"width":827,"height":12}},{"id":"3904fb42-b51b-4759-90b3-f4bd8098dffd","block_type":"box","text":"with demands for improved political, economic and social conditions; (iii) internal insurgencies; (iv) hostile relations","page_number":71,"box":{"x":68,"y":392,"width":823,"height":12}},{"id":"25118a3e-88c8-4cc8-b9a4-a47e1476c99c","block_type":"box","text":"with neighboring countries; and (v) ethnic, religious and racial disaffection. In addition, the governments of many of","page_number":71,"box":{"x":68,"y":407,"width":822,"height":12}},{"id":"ceb9a40e-64bb-4d41-b5ac-c672b6c354c4","block_type":"box","text":"such countries, such as Indonesia, have a substantial role in regulating and supervising the economy. Another risk","page_number":71,"box":{"x":69,"y":423,"width":818,"height":11}},{"id":"0acdb4e9-3e15-48c6-bad0-bc62cef5e88d","block_type":"box","text":"common to most such countries is that the economy is heavily expor t oriented and, accordingly, is dependent upon","page_number":71,"box":{"x":69,"y":438,"width":821,"height":11}},{"id":"c15afe7a-43ca-4351-a380-df760787a8b2","block_type":"box","text":"international trade. The existence of overburdened infrastructure and obsolete financial systems also presents risks","page_number":71,"box":{"x":70,"y":453,"width":827,"height":11}},{"id":"4d8fd3fa-9417-4940-894e-0241a8a7f18d","block_type":"box","text":"in cer tain countries, as do environmental problems. Cer tain economies also depend to a significant degree upon","page_number":71,"box":{"x":70,"y":468,"width":803,"height":11}},{"id":"e1bff345-273a-42e9-baf6-baa4d8353e9d","block_type":"box","text":"expor ts of primary commodities and, therefore, are vulnerable to changes in commodity prices that, in turn, may be","page_number":71,"box":{"x":69,"y":483,"width":824,"height":11}},{"id":"e7d45052-0a7a-496b-b9a1-8b558085ab9f","block_type":"box","text":"affected by a variety of factors.","page_number":71,"box":{"x":69,"y":498,"width":220,"height":11}},{"id":"a6bd4293-3f4c-421d-8759-9da91ed55f81","block_type":"box","text":"The legal systems in cer tain developing market Asia-Pacific countries also may have an adverse impact on the","page_number":71,"box":{"x":101,"y":521,"width":785,"height":11}},{"id":"c7d2afb2-1d2a-423e-9e48-d5e3801bbcb6","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":71,"box":{"x":70,"y":536,"width":789,"height":11}},{"id":"788af791-e32e-4d0e-95e6-cbc3f18a47b5","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":71,"box":{"x":69,"y":551,"width":814,"height":11}},{"id":"b8889195-f380-455f-a496-8484f903d297","block_type":"box","text":"clear in cer tain emerging market Asia-Pacific countries. Similarly, the rights of investors in developing market Asia","page_number":71,"box":{"x":69,"y":566,"width":813,"height":11}},{"id":"dcbd3638-8f71-4f52-ad73-56b65a0bb53b","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":71,"box":{"x":69,"y":581,"width":777,"height":11}},{"id":"50125d2f-24bf-4cc9-8ac4-e4c91a2f59e2","block_type":"box","text":"impossible to obtain and/or enforce a judgment in a developing market Asia-Pacific country.","page_number":71,"box":{"x":70,"y":596,"width":652,"height":12}},{"id":"321efc10-2570-4bda-8eac-da04585d70ad","block_type":"box","text":"Governments of many developing market Asia-Pacific countries have exercised and continue to exercise","page_number":71,"box":{"x":102,"y":619,"width":737,"height":11}},{"id":"980dcd6b-85b9-4509-a038-4482022f8376","block_type":"box","text":"substantial influence over many aspects of the private sector. In cer tain cases, the government owns or controls","page_number":71,"box":{"x":69,"y":634,"width":803,"height":12}},{"id":"71e25e4d-e46d-48d8-93e6-a04ca8845656","block_type":"box","text":"many companies, including the largest in the country. Accordingly, government actions in the future could have a","page_number":71,"box":{"x":69,"y":649,"width":801,"height":12}},{"id":"e17b490d-faa0-47e8-af48-34b5f68768fa","block_type":"box","text":"significant effect on economic conditions in developing market Asia-Pacific countries, which could affect private","page_number":71,"box":{"x":69,"y":664,"width":793,"height":12}},{"id":"189d8085-794d-4c17-a1bb-d7d1bbbefce9","block_type":"box","text":"sector companies and a Fund itself, as well as the value of securities in the Fund’s por tfolio. In addition, economic","page_number":71,"box":{"x":69,"y":680,"width":820,"height":11}},{"id":"253be5da-9e8c-4060-a6cc-1a515280b5be","block_type":"box","text":"statistics of developing market Asia-Pacific countries may be less reliable than economic statistics of more developed","page_number":71,"box":{"x":69,"y":695,"width":839,"height":11}},{"id":"84b33fcf-9627-4572-94b9-8f903f7afe95","block_type":"box","text":"nations.","page_number":71,"box":{"x":69,"y":710,"width":56,"height":9}},{"id":"f5c96b62-09ab-4419-91db-4a5c72b1a34f","block_type":"box","text":"In addition to the relative lack of publicly available information about developing market Asia-Pacific issuers and","page_number":71,"box":{"x":102,"y":732,"width":794,"height":12}},{"id":"c2bb70db-312f-4a10-bd16-0a641ecaff5e","block_type":"box","text":"the possibility that such issuers may not be subject to the same accounting, auditing and financial repor ting","page_number":71,"box":{"x":68,"y":748,"width":773,"height":11}},{"id":"a3946ca3-47c1-458b-85d1-f296ff57205a","block_type":"box","text":"standards as U.S. companies, inflation accounting rules in some developing market Asia-Pacific countries require","page_number":71,"box":{"x":69,"y":763,"width":808,"height":11}},{"id":"2118c12d-d8e4-4e85-a3c4-9836bbfee9e0","block_type":"box","text":"companies that keep accounting records in the local currency, for both tax and accounting purposes, to restate","page_number":71,"box":{"x":69,"y":778,"width":791,"height":11}},{"id":"f12253fb-3c2a-4819-9a9e-6af2a0554c25","block_type":"box","text":"cer tain assets and liabilities on the company’s balance sheet in order to express items in terms of currency of","page_number":71,"box":{"x":69,"y":793,"width":790,"height":11}},{"id":"e873cd54-d5b7-429d-86fa-b4acf22dcba1","block_type":"box","text":"constant purchasing power. Inflation accounting may indirectly generate losses or profits for cer tain developing","page_number":71,"box":{"x":69,"y":808,"width":790,"height":11}},{"id":"98208e98-c0fa-4fb1-8bed-26efc71d8eb5","block_type":"box","text":"market Asia-Pacific companies.","page_number":71,"box":{"x":69,"y":823,"width":220,"height":11}},{"id":"62afe710-e2f6-4f41-850e-7861c566ea7b","block_type":"box","text":"Satisfactory custodial services for investment securities may not be available in some developing Asia-Pacific","page_number":71,"box":{"x":102,"y":846,"width":780,"height":11}},{"id":"da898c09-77fa-403b-84ce-5683fd24f903","block_type":"box","text":"countries, which may result in the Fund incurring additional costs and delays in providing transpor tation and custody","page_number":71,"box":{"x":69,"y":861,"width":829,"height":11}},{"id":"dfe93e98-35fd-4870-bd45-a2b8ef3cf127","block_type":"box","text":"services for such securities outside such countries.","page_number":71,"box":{"x":69,"y":876,"width":367,"height":9}},{"id":"e0cf0682-93b2-48f8-975a-aa2824c908bd","block_type":"box","text":"II-36","page_number":71,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"04199eff-e97e-46bf-9823-6a40c1f3b85e","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":71,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8bc212ff-5873-48a3-a2fd-46cc1c5e13eb","block_type":"box","text":"Cer tain developing Asia-Pacific countries, such as the Philippines, India and Turkey, are especially large debtors","page_number":72,"box":{"x":102,"y":45,"width":795,"height":11}},{"id":"18f0580b-d516-4a39-9a07-e741abb38a34","block_type":"box","text":"to commercial banks and foreign governments.","page_number":72,"box":{"x":68,"y":60,"width":335,"height":11}},{"id":"d5add5ec-c33a-486e-8fae-0d1d33f6bc12","block_type":"box","text":"Natural disasters in Asia-Pacific countries, and the resulting damage, could have a severe and negative impact","page_number":72,"box":{"x":102,"y":82,"width":788,"height":12}},{"id":"54c4350f-aa32-48bf-9d25-b41ce0d9b34d","block_type":"box","text":"on a Fund’s investment por tfolio and, in the longer term, could impair the ability of issuers in which the Fund invests","page_number":72,"box":{"x":69,"y":98,"width":830,"height":11}},{"id":"585a2f80-0d4c-4e50-94f2-ae46795cd7c2","block_type":"box","text":"to conduct their businesses in the manner normally conducted.","page_number":72,"box":{"x":68,"y":113,"width":450,"height":11}},{"id":"c7076bf3-0ddb-4346-869b-9c57886bedb9","block_type":"box","text":"Fund management may determine that, notwithstanding otherwise favorable investment criteria, it may not be","page_number":72,"box":{"x":102,"y":135,"width":782,"height":12}},{"id":"d5a699d8-b165-4104-8da0-31ba13cb44ee","block_type":"box","text":"practicable or appropriate to invest in a par ticular developing Asia-Pacific country. A Fund may invest in countries in","page_number":72,"box":{"x":70,"y":150,"width":819,"height":12}},{"id":"932c9be6-f09a-4f22-a17c-f9ea41c9eaed","block_type":"box","text":"which foreign investors, including management of the Fund, have had no or limited prior experience.","page_number":72,"box":{"x":68,"y":166,"width":711,"height":11}},{"id":"a607661e-9115-4dda-8eda-8735267f8ce7","block_type":"box","text":"Restrictions on Foreign Investments in Asia-Pacific Countries.","page_number":72,"box":{"x":102,"y":188,"width":435,"height":12}},{"id":"d0aed2e6-3e66-4eaf-9243-1a741f54a92f","block_type":"box","text":"Some developing Asia-Pacific countries prohibit or","page_number":72,"box":{"x":543,"y":188,"width":355,"height":12}},{"id":"a276481c-4e16-46b8-bdae-a2ea407e6b0c","block_type":"box","text":"impose substantial restrictions on investments in their capital markets, par ticularly their equity markets, by foreign","page_number":72,"box":{"x":70,"y":203,"width":817,"height":12}},{"id":"b58e4a78-a1e1-4d61-ae3e-7100e6f8bc27","block_type":"box","text":"entities such as a Fund. As illustrations, cer tain countries may require governmental approval prior to investments by","page_number":72,"box":{"x":69,"y":219,"width":836,"height":11}},{"id":"c2041624-2650-4156-a3b0-89f3cea9bdb4","block_type":"box","text":"foreign persons or limit the amount of investment by foreign persons in a par ticular company or limit the investment","page_number":72,"box":{"x":68,"y":234,"width":828,"height":11}},{"id":"eb2464ef-5ab3-4604-9397-0a979ee7bdfa","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":72,"box":{"x":69,"y":249,"width":794,"height":11}},{"id":"264dba21-7020-4325-9c41-ad6f1362cafc","block_type":"box","text":"(including price and shareholder rights) than securities of the company available for purchase by nationals. There can","page_number":72,"box":{"x":69,"y":264,"width":835,"height":11}},{"id":"e3553bcb-7e5c-42d9-8a88-b30fe9c3ba39","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":72,"box":{"x":69,"y":279,"width":820,"height":11}},{"id":"1c7d3bb2-916b-41ea-bc62-abc15b2de38a","block_type":"box","text":"changes to restrictions on foreign ownership of securities subsequent to a Fund’s purchase of such securities may","page_number":72,"box":{"x":69,"y":294,"width":820,"height":11}},{"id":"9642c537-fe33-4e5e-adad-e18cddbc9793","block_type":"box","text":"have an adverse effect on the value of such shares. Cer tain countries may restrict investment oppor tunities in","page_number":72,"box":{"x":69,"y":309,"width":788,"height":11}},{"id":"ed2a6b59-12cd-46b4-88e3-46c2b7cc1a76","block_type":"box","text":"issuers or industries deemed impor tant to national interests.","page_number":72,"box":{"x":70,"y":325,"width":434,"height":10}},{"id":"fe499766-53d5-4321-b1bb-57170cdd7b58","block_type":"box","text":"The manner in which foreign investors may invest in companies in cer tain developing Asia-Pacific countries, as","page_number":72,"box":{"x":101,"y":347,"width":787,"height":11}},{"id":"45a8649f-8bef-4a92-8d1d-f722392de8eb","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":72,"box":{"x":68,"y":362,"width":833,"height":11}},{"id":"7f26daad-6ea1-44a2-8d90-001113042e7f","block_type":"box","text":"a Fund may be required in cer tain of such countries to invest initially through a local broker or other entity and then","page_number":72,"box":{"x":69,"y":377,"width":820,"height":12}},{"id":"2699f1bf-7dc7-4bab-b75f-1064e083b40a","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":72,"box":{"x":69,"y":392,"width":831,"height":12}},{"id":"4fc0e52c-8dfd-482f-9c49-c208dd72f4ea","block_type":"box","text":"to occur on a timely basis, resulting in a delay during which a Fund may be denied cer tain of its rights as an investor,","page_number":72,"box":{"x":68,"y":407,"width":834,"height":12}},{"id":"54af7326-71f0-4a4a-bfea-735588568f37","block_type":"box","text":"including rights as to dividends or to be made aware of cer tain corporate actions. There also may be instances where","page_number":72,"box":{"x":70,"y":423,"width":836,"height":11}},{"id":"7e3e98fb-eb71-4184-af18-d16a92ef0f8b","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":72,"box":{"x":69,"y":438,"width":800,"height":11}},{"id":"966eac2c-c99d-4f8a-9b6a-27f1f16ac87d","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":72,"box":{"x":69,"y":453,"width":826,"height":11}},{"id":"f87720af-f65f-4c94-a0ee-f8eea039406c","block_type":"box","text":"investment at that time.","page_number":72,"box":{"x":70,"y":468,"width":168,"height":9}},{"id":"b8453538-778b-4d17-b974-56c70a5821b0","block_type":"box","text":"Substantial limitations may exist in cer tain countries with respect to a Fund’s ability to repatriate investment","page_number":72,"box":{"x":102,"y":491,"width":774,"height":11}},{"id":"5f1f196c-0e74-47ce-956f-b8a3e9f2bd9a","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":72,"box":{"x":70,"y":506,"width":803,"height":11}},{"id":"4f47a15b-6b9a-431c-88af-7d6f6a97a724","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":72,"box":{"x":69,"y":521,"width":789,"height":11}},{"id":"a4426233-33fd-4bac-899f-46bc6696854e","block_type":"box","text":"application to the Fund of any restrictions on investments. It is possible that cer tain countries may impose currency","page_number":72,"box":{"x":69,"y":536,"width":826,"height":11}},{"id":"49fc15d5-3233-4220-9efc-f9516ab3eb55","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":72,"box":{"x":69,"y":551,"width":818,"height":11}},{"id":"bb7f4daa-c53b-40b2-8302-234974d64fca","block_type":"box","text":"that such restrictions have the effect of making cer tain investments illiquid, securities may not be available for sale","page_number":72,"box":{"x":68,"y":566,"width":826,"height":11}},{"id":"efdc666a-7e81-41ff-8ada-a40e2d98f75e","block_type":"box","text":"to meet redemptions. Depending on a variety of financial factors, the percentage of a Fund’s por tfolio subject to","page_number":72,"box":{"x":68,"y":581,"width":800,"height":12}},{"id":"6953698d-d51e-41b5-a252-e864a9bb2d28","block_type":"box","text":"currency controls may increase. In the event other countries impose similar controls, the por tion of the Fund’s assets","page_number":72,"box":{"x":69,"y":596,"width":839,"height":12}},{"id":"ff24f88b-c20c-4c1c-a37d-2a1ffba92dd7","block_type":"box","text":"that may be used to meet redemptions may be fur ther decreased. Even where there is no outright restriction on","page_number":72,"box":{"x":68,"y":612,"width":798,"height":11}},{"id":"8c62d10e-9c44-44e2-86d2-6794e7c870c9","block_type":"box","text":"repatriation of capital, the mechanics of repatriation may affect cer tain aspects of the operations of a Fund (for","page_number":72,"box":{"x":69,"y":627,"width":795,"height":11}},{"id":"8249c5a7-2a9c-4c8e-b912-6a5f70d3efe9","block_type":"box","text":"example, if funds may be withdrawn only in cer tain currencies and/or only at an exchange rate established by the","page_number":72,"box":{"x":69,"y":642,"width":808,"height":11}},{"id":"13703fc9-750c-4936-bc49-c86fa21df115","block_type":"box","text":"government).","page_number":72,"box":{"x":68,"y":657,"width":92,"height":11}},{"id":"45d273eb-fe1d-4596-9883-18f25b0d022b","block_type":"box","text":"In cer tain countries, banks or other financial institutions may be among the leading companies or have actively","page_number":72,"box":{"x":102,"y":680,"width":790,"height":11}},{"id":"709bbc6d-7d67-4277-b3a3-e8110811951b","block_type":"box","text":"traded securities available for investment. The Investment Company Act restricts a Fund’s investments in any equity","page_number":72,"box":{"x":68,"y":695,"width":828,"height":11}},{"id":"16d7e180-5046-4cae-9f28-f31131c76908","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":72,"box":{"x":69,"y":710,"width":808,"height":11}},{"id":"852a5d82-5500-4acb-b23e-ac434afd4fdc","block_type":"box","text":"related activities,” as defined by the rules thereunder. These provisions may restrict a Fund’s investments in cer tain","page_number":72,"box":{"x":69,"y":725,"width":829,"height":11}},{"id":"78d8d87b-ea31-4a26-91ce-d6b7ed9b23d7","block_type":"box","text":"foreign banks and other financial institutions.","page_number":72,"box":{"x":68,"y":740,"width":322,"height":11}},{"id":"253d06a6-fa19-479f-a82b-65b98ac33677","block_type":"box","text":"Political and economic structures in emerging market countries may be undergoing significant evolution and","page_number":72,"box":{"x":102,"y":763,"width":767,"height":11}},{"id":"f444af4c-b916-4c65-bfc8-73974d13b5e3","block_type":"box","text":"rapid development, and these countries may lack the social, political and economic stability characteristic of more","page_number":72,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"2f21106a-ef83-46ae-a21b-875a03959320","block_type":"box","text":"developed countries. Some of these countries may have in the past failed to recognize private proper ty rights and","page_number":72,"box":{"x":69,"y":793,"width":809,"height":11}},{"id":"a7afedb5-0364-4d64-89a3-7261e05d10c7","block_type":"box","text":"have at times nationalized or expropriated the assets of private companies. As a result the risks described above,","page_number":72,"box":{"x":69,"y":808,"width":812,"height":11}},{"id":"3141ac54-d402-4980-aae4-476febc805db","block_type":"box","text":"including the risks of nationalization or expropriation of assets, may be heightened. In addition, unanticipated political","page_number":72,"box":{"x":70,"y":823,"width":838,"height":12}},{"id":"9c983bdf-d933-435b-8745-17340f03f698","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":72,"box":{"x":69,"y":838,"width":788,"height":11}},{"id":"d0b6c22b-73e4-479b-a5d5-3275ca95bf3a","block_type":"box","text":"additional investments in emerging market countries. The small size and inexperience of the securities markets in","page_number":72,"box":{"x":69,"y":853,"width":812,"height":12}},{"id":"03073584-1eb3-4252-823e-9416fb54ed71","block_type":"box","text":"cer tain of these countries and the limited volume of trading in securities in these countries may make investments in","page_number":72,"box":{"x":69,"y":869,"width":835,"height":11}},{"id":"01dec016-6f60-4bf6-ad6b-b9f31a174bd2","block_type":"box","text":"the countries illiquid and more volatile than investments in Japan or most Western European countries. There may be","page_number":72,"box":{"x":68,"y":884,"width":837,"height":11}},{"id":"c6143e19-02b6-4684-8cd4-e319d9bbb3f4","block_type":"box","text":"II-37","page_number":72,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"12af7c97-aaa6-49ed-86db-7aef1720d8ed","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":72,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"871a0b4b-8344-4af6-a481-0769ea7a966f","block_type":"box","text":"little financial or accounting information available with respect to issuers located in cer tain emerging market","page_number":73,"box":{"x":70,"y":45,"width":771,"height":11}},{"id":"5aff6a23-4e4b-4716-aa69-8f149082b51d","block_type":"box","text":"countries, and it may be difficult to assess the value or prospects of an investment in such issuers.","page_number":73,"box":{"x":69,"y":60,"width":711,"height":11}},{"id":"01faed1c-313a-42a9-aaef-34ad7910d52f","block_type":"box","text":"The expense ratios of the Funds investing significantly in foreign securities can be expected to be higher than","page_number":73,"box":{"x":101,"y":82,"width":779,"height":12}},{"id":"af98acb6-48d5-465b-b98b-3fe6ee466161","block_type":"box","text":"those of Funds investing primarily in domestic securities. The costs attributable to investing abroad are usually higher","page_number":73,"box":{"x":68,"y":98,"width":840,"height":11}},{"id":"003f4df4-3ae9-4819-89b5-cfd6eadf6449","block_type":"box","text":"for several reasons, such as the higher cost of custody of foreign securities, higher commissions paid on comparable","page_number":73,"box":{"x":68,"y":113,"width":838,"height":11}},{"id":"a92f8076-491a-459a-8a21-a3ebdeb6aa63","block_type":"box","text":"transactions on foreign markets and additional costs arising from delays in settlements of transactions involving","page_number":73,"box":{"x":68,"y":128,"width":802,"height":11}},{"id":"beb6b3ad-ddaa-4939-b8cd-3afaf2e2158b","block_type":"box","text":"foreign securities.","page_number":73,"box":{"x":68,"y":143,"width":127,"height":11}},{"id":"0fe1ab16-aa0d-420b-bdc1-8e8256e30852","block_type":"box","text":"Risks of Investments in Russia.","page_number":73,"box":{"x":102,"y":166,"width":224,"height":9}},{"id":"7f4aeae8-18a2-49d8-a22c-01004cca196c","block_type":"box","text":"A Fund may invest a por tion of its assets in securities issued by companies","page_number":73,"box":{"x":332,"y":166,"width":539,"height":11}},{"id":"b8b2ce11-127f-4726-b5b0-d094f52f5840","block_type":"box","text":"located in Russia. The Russian securities market suffers from a variety of problems described above in “Investment","page_number":73,"box":{"x":70,"y":181,"width":826,"height":11}},{"id":"e28ee833-31fb-4236-8f1f-1f4dc2b4bd43","block_type":"box","text":"in Emerging Markets” not encountered in more developed markets. The Russian securities market is relatively new,","page_number":73,"box":{"x":70,"y":196,"width":821,"height":11}},{"id":"3ded7849-2077-46a0-ac33-ec44be3932c8","block_type":"box","text":"and a substantial por tion of securities transactions in Russia are privately negotiated outside of stock exchanges.","page_number":73,"box":{"x":69,"y":211,"width":812,"height":11}},{"id":"0cf39048-0b99-48d7-9ad1-9c45cc1aa3b0","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":73,"box":{"x":68,"y":226,"width":824,"height":11}},{"id":"631e635a-990b-42af-b8f3-e662bd3d3df5","block_type":"box","text":"make obtaining accurate prices on por tfolio securities from independent sources more difficult than in more","page_number":73,"box":{"x":69,"y":241,"width":771,"height":11}},{"id":"b14939c9-c494-4f32-94d3-d018bee4f2a9","block_type":"box","text":"developed markets.","page_number":73,"box":{"x":69,"y":257,"width":138,"height":10}},{"id":"4f617589-5727-48be-b2ba-2257193c2dd6","block_type":"box","text":"Because of the underdeveloped state of Russia’s securities markets and banking and telecommunication","page_number":73,"box":{"x":102,"y":279,"width":751,"height":11}},{"id":"c808c27d-aafe-42d4-a95a-3760a30ab1b3","block_type":"box","text":"systems, settlement, clearing and registration of securities transactions are subject to additional risks. Prior to 2013,","page_number":73,"box":{"x":69,"y":294,"width":839,"height":11}},{"id":"bf296cb2-bef3-431b-bbbd-c82c2a6d77cf","block_type":"box","text":"there was no central registration system for equity share registration in Russia and registration was carried out either","page_number":73,"box":{"x":68,"y":309,"width":838,"height":11}},{"id":"c53f1124-5359-4f21-a5ea-3623c40f807e","block_type":"box","text":"by the issuers themselves or by registrars located throughout Russia. These registrars may not have been subject to","page_number":73,"box":{"x":69,"y":325,"width":831,"height":11}},{"id":"3732f3c2-9768-438b-a371-727c3efbf7ff","block_type":"box","text":"effective state supervision or licensed with any governmental entity. In 2013, Russia established the National","page_number":73,"box":{"x":69,"y":339,"width":783,"height":12}},{"id":"1506a293-c340-4d88-a989-fb41944ea9f1","block_type":"box","text":"Settlement Depository (“NSD”) as a recognized central securities depository, and title to Russian equities held","page_number":73,"box":{"x":69,"y":355,"width":790,"height":11}},{"id":"e38c6eb7-36c2-4137-a413-54a24a1052cf","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":73,"box":{"x":68,"y":370,"width":833,"height":11}},{"id":"508ce80e-8c7c-4f74-b0e5-3689c3fa87c1","block_type":"box","text":"implementation of the NSD has enhanced the efficiency and transparency of the Russian securities market, loss still","page_number":73,"box":{"x":70,"y":385,"width":831,"height":11}},{"id":"58a62d68-3d02-4940-9405-bd1e9b0e2323","block_type":"box","text":"can occur. Additionally, issuers and registrars remain prominent in the validation and approval of documentation","page_number":73,"box":{"x":69,"y":400,"width":797,"height":11}},{"id":"2d6c5072-4867-47c1-a0d6-f9cc4f671826","block_type":"box","text":"requirements for corporate action processing in Russia, and, because the documentation requirements and approval","page_number":73,"box":{"x":69,"y":415,"width":832,"height":11}},{"id":"8c45aada-fd5c-4a6b-b54e-0758851d92c0","block_type":"box","text":"criteria vary between registrars and issuers, there remain inconsistent market standards in the Russian market with","page_number":73,"box":{"x":69,"y":430,"width":827,"height":11}},{"id":"f2d053b4-a8a9-4b9c-b4b6-e0e049110d42","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":73,"box":{"x":69,"y":445,"width":800,"height":11}},{"id":"b016a5de-934b-40e2-8258-5cf9462b21e5","block_type":"box","text":"relating to title or corporate actions relating to its por tfolio securities, it may be difficult for the Fund to enforce its","page_number":73,"box":{"x":69,"y":460,"width":813,"height":12}},{"id":"7cdd9afb-1432-427b-ac74-623400cf6c0a","block_type":"box","text":"rights or otherwise remedy the loss. Russian securities laws may not recognize foreign nominee accounts held with a","page_number":73,"box":{"x":69,"y":475,"width":836,"height":12}},{"id":"a4e94fb7-a878-4920-98fe-39e7cd16056e","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":73,"box":{"x":69,"y":491,"width":824,"height":11}},{"id":"675f529d-924a-468a-af58-a91f3f68c65f","block_type":"box","text":"their clients. A Fund also may experience difficulty in obtaining and/or enforcing judgments in Russia.","page_number":73,"box":{"x":68,"y":506,"width":723,"height":11}},{"id":"8b6ba6c6-3687-4d08-80a9-3951f87ee780","block_type":"box","text":"In addition, Russia continues to asser t its influence in the region through economic and military measures, as it","page_number":73,"box":{"x":102,"y":528,"width":801,"height":12}},{"id":"14f78cff-55a0-4e51-802d-8ed253a2ac49","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":73,"box":{"x":69,"y":543,"width":826,"height":12}},{"id":"b5a35d35-cd99-46e1-83d0-5b101b00eaec","block_type":"box","text":"of Ukraine on February 24, 2022. The extent and duration of the military action, resulting sanctions and resulting","page_number":73,"box":{"x":69,"y":559,"width":809,"height":11}},{"id":"5dc34ed0-6416-43d7-9bd5-1e21881ef6d1","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":73,"box":{"x":68,"y":574,"width":821,"height":11}},{"id":"5bb39614-690a-4249-aebf-4efdaba868d6","block_type":"box","text":"are impossible to predict. Any such disruptions caused by Russian military action or other actions (including","page_number":73,"box":{"x":69,"y":589,"width":770,"height":11}},{"id":"4fc8bd43-2e57-4caa-8718-a5b7eea55bf5","block_type":"box","text":"cyberattacks and espionage) or resulting actual and threatened responses to such activity, including purchasing and","page_number":73,"box":{"x":69,"y":604,"width":827,"height":11}},{"id":"44cf6dcf-7b21-4094-a81d-25a226ef3026","block_type":"box","text":"financing restrictions, boycotts or changes in consumer or purchaser preferences, sanctions, tariffs or cyberattacks","page_number":73,"box":{"x":68,"y":619,"width":824,"height":11}},{"id":"ad94094f-f689-416b-94ac-90c0df3e23e5","block_type":"box","text":"on the Russian government, Russian companies or Russian individuals, including politicians, may impact Russia’s","page_number":73,"box":{"x":69,"y":634,"width":814,"height":12}},{"id":"31b15324-bd3c-488d-83b2-8d6f12a79a7e","block_type":"box","text":"economy and Russian issuers of securities in which the Fund invests. Actual and threatened responses to such","page_number":73,"box":{"x":69,"y":649,"width":795,"height":12}},{"id":"dcea6a40-684c-4474-aec7-2fa9f3248bee","block_type":"box","text":"activity, including purchasing restrictions, sanctions, tariffs or cyberattacks on the Russian government or Russian","page_number":73,"box":{"x":69,"y":664,"width":814,"height":12}},{"id":"5188a753-ded2-4024-9e93-2d74d7681aad","block_type":"box","text":"companies, may impact Russia’s economy and Russian issuers of securities in which the Fund invests. Actual and","page_number":73,"box":{"x":69,"y":680,"width":816,"height":11}},{"id":"8dff7858-e0f3-4ad3-b0cf-1a299da0346b","block_type":"box","text":"threatened responses to such military action may also impact the markets for cer tain Russian commodities, such as","page_number":73,"box":{"x":68,"y":695,"width":836,"height":11}},{"id":"5f585014-d617-4624-8fef-ffafbfb8cf2f","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":73,"box":{"x":69,"y":710,"width":829,"height":11}},{"id":"7e7b11e0-df2a-4ec3-93cf-cdeac0261b59","block_type":"box","text":"sectors globally.","page_number":73,"box":{"x":69,"y":725,"width":112,"height":11}},{"id":"40591054-b833-4776-8450-454c91d98bcf","block_type":"box","text":"Governments in the United States and many other countries (collectively, the “Sanctioning Bodies”) have","page_number":73,"box":{"x":102,"y":748,"width":745,"height":11}},{"id":"42cfc232-eddb-4355-a3b8-9f9bb80e3e5e","block_type":"box","text":"imposed economic sanctions, which can consist of prohibiting cer tain securities trades, cer tain private transactions","page_number":73,"box":{"x":70,"y":763,"width":826,"height":11}},{"id":"92918d5d-2315-46c4-a9be-e1181826e782","block_type":"box","text":"in the energy sector, asset freezes and prohibition of all business, against cer tain Russian individuals, including","page_number":73,"box":{"x":70,"y":778,"width":799,"height":11}},{"id":"0ffad272-5cb3-4eee-95e8-e896a5cef037","block_type":"box","text":"politicians, and Russian corporate and banking entities. The Sanctioning Bodies, or others, could also institute","page_number":73,"box":{"x":70,"y":793,"width":788,"height":11}},{"id":"475c222d-cb39-4ff0-87c4-b2865ef4a4e3","block_type":"box","text":"broader sanctions on Russia, including banning Russia from global payments systems that facilitate cross-border","page_number":73,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"e7e9916f-74e7-4850-9d68-41ba2a1cf4e7","block_type":"box","text":"payments. These sanctions, or even the threat of fur ther sanctions, may result in the decline of the value and","page_number":73,"box":{"x":70,"y":823,"width":782,"height":11}},{"id":"096a35e2-6c0a-46df-84be-9c23406d9273","block_type":"box","text":"liquidity of Russian securities, a weakening of the ruble or other adverse consequences to the Russian economy.","page_number":73,"box":{"x":70,"y":838,"width":802,"height":12}},{"id":"8a64a68c-4408-4325-8c66-2ee385a792d5","block_type":"box","text":"These sanctions have resulted and may continue to result in the immediate freeze of Russian securities and/or","page_number":73,"box":{"x":68,"y":853,"width":797,"height":12}},{"id":"3cb770fc-a98d-4d21-8415-f12df616bdb0","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":73,"box":{"x":68,"y":869,"width":804,"height":11}},{"id":"f62ec693-4324-4261-ae7c-966775066ae4","block_type":"box","text":"and/or assets. Sanctions could also result in Russia taking counter measures or retaliatory actions which may","page_number":73,"box":{"x":69,"y":884,"width":791,"height":11}},{"id":"21cc15bc-1255-4100-b890-271b1308b0d7","block_type":"box","text":"fur ther impair the value and liquidity of Russian securities.","page_number":73,"box":{"x":68,"y":899,"width":417,"height":11}},{"id":"44405595-4fdd-4687-8202-967b80e48223","block_type":"box","text":"II-38","page_number":73,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1b44376c-b849-413a-9423-af67442d780a","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":73,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3d26601f-61d0-4c8e-9e31-0113cdc912d2","block_type":"box","text":"Risks of Investing in Saudi Arabia.","page_number":74,"box":{"x":102,"y":45,"width":241,"height":11}},{"id":"bc3cc8dc-6513-4eea-a09a-249f461942a8","block_type":"box","text":"The ability of foreign investors (such as a Fund) to invest in Saudi Arabian","page_number":74,"box":{"x":350,"y":45,"width":523,"height":11}},{"id":"b0827252-60db-45f2-be2b-d5f02fac2dd2","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":74,"box":{"x":70,"y":60,"width":838,"height":11}},{"id":"5b397414-2270-4e7e-891b-0db1ba06a31b","block_type":"box","text":"and unforeseen risks could materialize due to foreign ownership in such securities. In addition, the Capital Market","page_number":74,"box":{"x":69,"y":75,"width":814,"height":11}},{"id":"193ed343-632e-403e-92f7-33c3726ab51c","block_type":"box","text":"Authority (“CMA”) places investment limitations on the ownership of Saudi Arabian issuers by foreign investors,","page_number":74,"box":{"x":68,"y":90,"width":793,"height":11}},{"id":"72a8e1f8-ef03-4948-8959-4fa06e362ffa","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":74,"box":{"x":70,"y":105,"width":819,"height":11}},{"id":"174d9f5c-879a-4ff6-893a-d408fe0c0e36","block_type":"box","text":"may prevent a Fund from investing in accordance with its strategy and contribute to tracking error against the","page_number":74,"box":{"x":69,"y":120,"width":777,"height":12}},{"id":"55fb7223-22bd-4ba5-8d10-d9167a060c0c","block_type":"box","text":"Underlying Index. These restrictions may be changed or new restrictions, such as licensing requirements, special","page_number":74,"box":{"x":70,"y":136,"width":803,"height":11}},{"id":"b1a8902d-d335-40c1-b050-604981463914","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":74,"box":{"x":69,"y":150,"width":837,"height":12}},{"id":"9d098117-e7fc-420b-a7f5-3667b7283d5a","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":74,"box":{"x":69,"y":166,"width":765,"height":11}},{"id":"1121e091-38d0-4ed3-bdfb-1b616a3f2fd9","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":74,"box":{"x":69,"y":181,"width":838,"height":11}},{"id":"452f47fc-2586-4afc-aa77-9b1cf39b8811","block_type":"box","text":"may be exacerbated, compared to more developed markets, given the limited history of foreign investment in the","page_number":74,"box":{"x":69,"y":196,"width":805,"height":11}},{"id":"92df267b-1f47-4804-b425-4f9a7115c009","block_type":"box","text":"Saudi Arabian market. Investments in Saudi Arabia may also be subject to loss due to expropriation or nationalization","page_number":74,"box":{"x":69,"y":211,"width":837,"height":11}},{"id":"ed5cb8d5-5aed-4adb-a64a-125c09b0d0fb","block_type":"box","text":"of assets and proper ty or the imposition of restrictions on additional foreign investments and repatriation of capital.","page_number":74,"box":{"x":69,"y":226,"width":826,"height":11}},{"id":"24d8739f-f7cd-46f2-ad81-752891713699","block_type":"box","text":"Such heightened risks may include, among others, restrictions on and government intervention in international trade,","page_number":74,"box":{"x":69,"y":241,"width":834,"height":11}},{"id":"fa3ec916-bced-4b7e-9717-7d12b89a4ce6","block_type":"box","text":"confiscatory taxation, political instability, including authoritarian and/or military involvement in governmental decision","page_number":74,"box":{"x":69,"y":256,"width":835,"height":12}},{"id":"1fc80feb-beaf-43d4-98c3-6251169f068b","block_type":"box","text":"making, armed conflict, crime and instability as a result of religious, ethnic and/or socioeconomic unrest. Saudi","page_number":74,"box":{"x":69,"y":271,"width":797,"height":12}},{"id":"aa363f70-ed18-4ace-9bb3-b9e957b683fa","block_type":"box","text":"Arabia has privatized, or has begun the process of privatizing, cer tain entities and industries. Newly privatized","page_number":74,"box":{"x":68,"y":286,"width":781,"height":12}},{"id":"8c3cb1e4-7f5f-4cea-8d0a-edb883673d60","block_type":"box","text":"companies may face strong competition from government-sponsored competitors that have not been privatized. In","page_number":74,"box":{"x":69,"y":302,"width":811,"height":11}},{"id":"14dad748-d5cd-4a98-887c-60f33c12b3be","block_type":"box","text":"some instances, investors in newly privatized entities have suffered losses due to the inability of the newly privatized","page_number":74,"box":{"x":69,"y":317,"width":833,"height":11}},{"id":"89b106f2-7b74-4200-b718-5c526f134d19","block_type":"box","text":"entities to adjust quickly to a competitive environment or changing regulatory and legal standards or, in some cases,","page_number":74,"box":{"x":69,"y":332,"width":831,"height":11}},{"id":"d4f9d24a-59ef-47f3-9c77-952f7ade2bfc","block_type":"box","text":"due to re-nationalization of such privatized entities. There is no assurance that similar losses will not recur. Fur ther,","page_number":74,"box":{"x":69,"y":347,"width":823,"height":11}},{"id":"d3cb3938-327d-42e6-bb59-7badd8dd91ad","block_type":"box","text":"under income tax laws imposed by the Depar tment of Zakat and Income Tax, dividends paid by a Saudi Arabian","page_number":74,"box":{"x":69,"y":362,"width":791,"height":11}},{"id":"d51c302c-f0c7-4f34-a8af-166224075816","block_type":"box","text":"company to foreign stockholders are generally subject to a 5% withholding tax (different tax rates may apply pursuant","page_number":74,"box":{"x":69,"y":377,"width":835,"height":12}},{"id":"867b4b69-8674-4963-9cb8-45fabe5e4d5f","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":74,"box":{"x":68,"y":392,"width":799,"height":12}},{"id":"b507210f-d358-469a-9b43-3157faf077fa","block_type":"box","text":"countries involved in the sale of petroleum, and its economy is therefore vulnerable to changes in foreign currency","page_number":74,"box":{"x":69,"y":407,"width":815,"height":12}},{"id":"c22794cc-3351-47fb-86f7-6f63acb4be03","block_type":"box","text":"values and the market for petroleum. As global demand for petroleum fluctuates, Saudi Arabia may be significantly","page_number":74,"box":{"x":68,"y":423,"width":818,"height":11}},{"id":"97f9feaf-4d8c-48db-912d-9dd5013bad09","block_type":"box","text":"impacted.","page_number":74,"box":{"x":70,"y":438,"width":67,"height":11}},{"id":"e392d623-7f99-4738-ae35-fd3fa6818e15","block_type":"box","text":"Like most Middle Eastern governments, the government of Saudi Arabia exercises substantial influence over","page_number":74,"box":{"x":102,"y":460,"width":773,"height":12}},{"id":"746f250f-e512-4e20-8a53-424479041e8e","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":74,"box":{"x":69,"y":475,"width":812,"height":12}},{"id":"d5451da5-6149-4c9a-b534-e8f241e59ced","block_type":"box","text":"lagged significantly: restrictions on foreign ownership persist, and the government has an ownership stake in many","page_number":74,"box":{"x":70,"y":491,"width":818,"height":11}},{"id":"ad5fba36-31c4-4f54-914d-c35984f0a817","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":74,"box":{"x":69,"y":506,"width":836,"height":11}},{"id":"976569c4-e673-48f7-bc8b-fb5e7dbe078b","block_type":"box","text":"Arabia has historically experienced strained relations with economic par tners worldwide, including other countries in","page_number":74,"box":{"x":68,"y":521,"width":826,"height":11}},{"id":"e5272cb1-7c31-41d8-b03d-333a1d7820c7","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":74,"box":{"x":68,"y":536,"width":809,"height":11}},{"id":"8f77152f-6802-49d6-8c2a-5ea2d3e3d9ff","block_type":"box","text":"including terrorism, may cause uncer tainty in their markets and may adversely affect its economy and a Fund’s","page_number":74,"box":{"x":70,"y":551,"width":790,"height":11}},{"id":"d901d8ce-8209-4a25-81db-68050519ab96","block_type":"box","text":"investments. Governmental actions in the future could have a significant effect on economic conditions in Saudi","page_number":74,"box":{"x":70,"y":566,"width":798,"height":11}},{"id":"3d948821-833a-4bfe-a793-76cf09648ec0","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":74,"box":{"x":68,"y":581,"width":781,"height":11}},{"id":"5d591997-7720-4e35-98da-07014933fc07","block_type":"box","text":"por tfolio. Any economic sanctions on Saudi Arabian individuals or Saudi Arabian corporate entities, or even the threat","page_number":74,"box":{"x":70,"y":596,"width":836,"height":12}},{"id":"b57f8174-f7c8-4ee7-9fd8-801284e73697","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":74,"box":{"x":69,"y":612,"width":837,"height":11}},{"id":"6ac69332-2a1f-4640-b50d-df037751eef5","block_type":"box","text":"riyal or other adverse consequences to the Saudi Arabian economy. In addition, Saudi Arabia’s economy relies heavily","page_number":74,"box":{"x":69,"y":627,"width":838,"height":11}},{"id":"db5a7fb5-4184-4fc6-9836-7c0c2871ff97","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":74,"box":{"x":69,"y":642,"width":790,"height":11}},{"id":"b4694bc8-0c67-4f83-95fa-dea4653ab9e9","block_type":"box","text":"economy.","page_number":74,"box":{"x":69,"y":659,"width":65,"height":9}},{"id":"a9aca4a5-9c5d-4fba-bc3f-06d61eadb5bc","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":74,"box":{"x":101,"y":680,"width":747,"height":11}},{"id":"3f8c04c5-e1f1-4b30-b21d-b7d02f5162f0","block_type":"box","text":"securities markets in Saudi Arabia are subject to greater risks associated with market volatility, lower market","page_number":74,"box":{"x":69,"y":695,"width":776,"height":11}},{"id":"fe77e6c5-f0ae-4cef-9b11-cf6796f79cdd","block_type":"box","text":"capitalization, lower trading volume, illiquidity, inflation, greater price fluctuations, uncer tainty regarding the existence","page_number":74,"box":{"x":69,"y":710,"width":836,"height":11}},{"id":"17fff0af-a8cd-4e3a-91eb-40b34bb91cae","block_type":"box","text":"of trading markets, governmental control and heavy regulation of labor and industry. Shares of cer tain Saudi Arabian","page_number":74,"box":{"x":69,"y":725,"width":830,"height":11}},{"id":"922d5811-6446-4dc3-9d7e-cd52037d3ba1","block_type":"box","text":"companies tend to trade less frequently than those of companies on exchanges in more developed markets. Such","page_number":74,"box":{"x":69,"y":740,"width":813,"height":11}},{"id":"2a2a898a-a428-4e38-ac90-43d7cd35f140","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":74,"box":{"x":70,"y":755,"width":822,"height":11}},{"id":"82d87fe0-64b9-4580-aae3-fdae9b3bcbeb","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":74,"box":{"x":68,"y":770,"width":837,"height":12}},{"id":"8d0f13a4-de73-49ab-a987-9f28f8097e7e","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":74,"box":{"x":69,"y":785,"width":826,"height":12}},{"id":"54e7d4ab-2f76-4b6c-a6a5-1188bdbb074d","block_type":"box","text":"typically the case for investment managers.","page_number":74,"box":{"x":68,"y":801,"width":309,"height":11}},{"id":"ad760283-c203-4240-a2f3-66579b9da507","block_type":"box","text":"Although the political situation in Saudi Arabia is largely stable, Saudi Arabia has historically experienced political","page_number":74,"box":{"x":101,"y":823,"width":806,"height":12}},{"id":"707397f1-1a68-42e1-98c1-864c2a2b7086","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":74,"box":{"x":70,"y":838,"width":828,"height":12}},{"id":"c1304ddc-a568-4890-8268-9aadf03ecebc","block_type":"box","text":"Middle East region could adversely impact the economy of Saudi Arabia. Instability may be caused by military","page_number":74,"box":{"x":70,"y":853,"width":777,"height":12}},{"id":"cdb0ac0a-7968-4e1b-907a-031670763525","block_type":"box","text":"developments, government interventions in the marketplace, terrorism, extremist attitudes, attempted social or","page_number":74,"box":{"x":69,"y":869,"width":796,"height":11}},{"id":"8c191635-9034-4cb3-8142-78fedb81cada","block_type":"box","text":"political reforms, religious differences, or other factors. Additionally, anti-Western views held by cer tain groups in the","page_number":74,"box":{"x":70,"y":884,"width":830,"height":11}},{"id":"94457d9e-ce74-42de-95c7-6eb176e62567","block_type":"box","text":"Middle East may influence government policies regarding foreign investment. Fur ther developments in U.S. relations","page_number":74,"box":{"x":70,"y":899,"width":827,"height":11}},{"id":"f258ff52-44bb-4787-a61d-c07c10b602b2","block_type":"box","text":"II-39","page_number":74,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1f2bee5d-6e44-47b2-a062-448a1fb9988b","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":74,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"420c2d21-ca51-4570-bd28-8f428671ecd2","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":75,"box":{"x":68,"y":45,"width":764,"height":11}},{"id":"a363e39e-1da7-4fe0-af51-8317e1b6c59c","block_type":"box","text":"significant, and in some cases the most significant, trading par tner of, or foreign investor in, Saudi Arabia. As a","page_number":75,"box":{"x":69,"y":60,"width":795,"height":11}},{"id":"8f6064be-eab2-434a-ae17-303fbce27c2e","block_type":"box","text":"result, economic conditions of Saudi Arabia may be par ticularly affected by changes in the U.S. economy. A decrease","page_number":75,"box":{"x":69,"y":75,"width":835,"height":11}},{"id":"6c8a511a-26ed-489f-8490-23022123c9b9","block_type":"box","text":"in U.S. impor ts or expor ts, new trade and financial regulations or tariffs, changes in the U.S. dollar exchange rate or","page_number":75,"box":{"x":70,"y":90,"width":829,"height":11}},{"id":"d6b2ae74-d14e-4ad1-ae52-7b5f38125216","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":75,"box":{"x":69,"y":105,"width":815,"height":11}},{"id":"d02e7908-a773-43dc-a7f8-ff0005879a31","block_type":"box","text":"and, as a result, securities to which the Fund has exposure. Political instability in Nor th Africa and the larger Middle","page_number":75,"box":{"x":69,"y":120,"width":825,"height":12}},{"id":"53f23ba6-2a75-461b-8f42-dbc4adb29ba0","block_type":"box","text":"East region has caused significant disruptions to many industries. Continued political and social unrest in these","page_number":75,"box":{"x":70,"y":135,"width":797,"height":12}},{"id":"82634656-2744-467f-a879-0c387f668396","block_type":"box","text":"areas may negatively affect the value of securities in a Fund’s por tfolio.","page_number":75,"box":{"x":69,"y":150,"width":510,"height":12}},{"id":"72b16f9c-678d-4f3e-8286-7859d4034c6a","block_type":"box","text":"Cer tain issuers located in Saudi Arabia may operate in, or have dealings with, countries subject to sanctions","page_number":75,"box":{"x":102,"y":173,"width":773,"height":11}},{"id":"dc51496b-0675-4693-a8e2-4d2208486bb1","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":75,"box":{"x":69,"y":188,"width":820,"height":12}},{"id":"a2d9b4de-aae1-44cd-8025-e70377c1f694","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":75,"box":{"x":69,"y":203,"width":787,"height":12}},{"id":"3f082430-5ba3-40fe-942b-67beb0ab651c","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":75,"box":{"x":70,"y":218,"width":837,"height":12}},{"id":"3969577e-5874-4b8b-b959-30ec2684d462","block_type":"box","text":"will be indirectly subject to those risks.","page_number":75,"box":{"x":68,"y":234,"width":277,"height":11}},{"id":"b279871f-2d3a-4f48-8af0-9df34c97d9a3","block_type":"box","text":"Risks of Investing in Venezuela.","page_number":75,"box":{"x":102,"y":256,"width":223,"height":12}},{"id":"1bfc04b4-3981-4fd6-830c-7452bc79e943","block_type":"box","text":"Investment in Venezuela may subject a Fund to legal, regulatory, political,","page_number":75,"box":{"x":332,"y":257,"width":521,"height":11}},{"id":"69bebe49-af2f-42d0-975e-c2de3bf9b55f","block_type":"box","text":"currency, security, expropriation and/or nationalization of assets and economic risk specific to Venezuela. Venezuela","page_number":75,"box":{"x":69,"y":271,"width":829,"height":12}},{"id":"fd0fcf09-2156-4292-8bfe-88318fa86d51","block_type":"box","text":"is extremely well endowed with natural resources, including oil and natural gas, and its economy is heavily dependent","page_number":75,"box":{"x":70,"y":287,"width":837,"height":11}},{"id":"0f831bb9-0595-4542-8400-73429b04019a","block_type":"box","text":"on expor t of natural resources to key trading par tners. Any act of terrorism, an armed conflict or a breakdown of a","page_number":75,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"8786a906-25da-4712-84bb-883a6b980f5f","block_type":"box","text":"key trading relationship that disrupts the production or expor t of natural resources will likely negatively affect the","page_number":75,"box":{"x":69,"y":317,"width":804,"height":11}},{"id":"7d217113-80d1-4220-9293-f2221eb384ec","block_type":"box","text":"Venezuelan economy. The government continues to control key sectors of the economy, including upstream oil and","page_number":75,"box":{"x":68,"y":332,"width":816,"height":11}},{"id":"d8f55280-2f58-41ee-b2a0-98eb581676fe","block_type":"box","text":"gas production, and has sought to increase its role in key sectors, such as telecommunications and steel.","page_number":75,"box":{"x":68,"y":347,"width":758,"height":11}},{"id":"90d73987-0b9b-438c-a4ce-722cebff7441","block_type":"box","text":"Meanwhile, ambiguities in the investment environment remain, such as continued high levels of bureaucracy and","page_number":75,"box":{"x":70,"y":362,"width":803,"height":11}},{"id":"04757bbc-e91e-4fe1-ac05-3a61921bd8f8","block_type":"box","text":"corruption, large macroeconomic imbalances, and political and policy uncer tainty. Friction continues between the","page_number":75,"box":{"x":69,"y":377,"width":804,"height":12}},{"id":"da539de1-60f8-4f92-8dda-48f400cfe959","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":75,"box":{"x":68,"y":392,"width":822,"height":12}},{"id":"c5e69e80-4987-4f53-a451-1ebd48c028d1","block_type":"box","text":"and sectoral sanctions, on cer tain Venezuelan individuals and Venezuelan corporate entities, and on the Venezuelan","page_number":75,"box":{"x":69,"y":408,"width":827,"height":10}},{"id":"39502584-0447-4728-b748-de6d68f986dc","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":75,"box":{"x":68,"y":423,"width":814,"height":11}},{"id":"29eb42ff-4fff-4817-b044-f6c4224379ed","block_type":"box","text":"against Venezuela in an effor t to effect regime change. Military action, sanctions, or even the threat of fur ther","page_number":75,"box":{"x":69,"y":438,"width":787,"height":11}},{"id":"8ad053ea-4442-40f1-a1a1-b2f2c8430785","block_type":"box","text":"military action and sanctions, may result in the decline of the value and liquidity of Venezuelan securities, a","page_number":75,"box":{"x":69,"y":453,"width":766,"height":11}},{"id":"f7c85e93-3193-46d8-b477-5a6f0dbc7262","block_type":"box","text":"weakening of the bolivar or other adverse consequences to the Venezuelan economy. These sanctions impair the","page_number":75,"box":{"x":68,"y":468,"width":804,"height":11}},{"id":"7581043d-4335-48c9-bf42-eefc21a8f2e9","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":75,"box":{"x":69,"y":483,"width":838,"height":11}},{"id":"dae20882-58ed-4336-aa04-ae72200b9b1c","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":75,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"6e3d7b03-9a77-47b2-990a-3fed5f7cbaa1","block_type":"box","text":"impact on a Fund’s investments.","page_number":75,"box":{"x":70,"y":514,"width":230,"height":10}},{"id":"0fe17726-2945-4421-81a7-aec08972deeb","block_type":"box","text":"Brady Bonds.","page_number":75,"box":{"x":102,"y":536,"width":92,"height":11}},{"id":"7a75321b-e4c7-4d41-ade9-9f02b9ee7fe6","block_type":"box","text":"Cer tain Funds may invest in Brady Bonds. A Fund’s emerging market debt securities may include","page_number":75,"box":{"x":201,"y":536,"width":689,"height":11}},{"id":"081a6499-3981-4fee-8a69-59d8d9df6860","block_type":"box","text":"emerging market governmental debt obligations commonly referred to as Brady Bonds. Brady Bonds are securities","page_number":75,"box":{"x":69,"y":551,"width":815,"height":11}},{"id":"d352a658-f8b3-4e53-b2b5-f9d0e8074581","block_type":"box","text":"created through the exchange of existing commercial bank loans to sovereign entities for new obligations in","page_number":75,"box":{"x":69,"y":566,"width":766,"height":11}},{"id":"aa89a112-0a0e-487a-9f48-51759e1a6dd0","block_type":"box","text":"connection with debt restructurings under a debt restructuring plan introduced by former U.S. Secretary of the","page_number":75,"box":{"x":69,"y":581,"width":784,"height":12}},{"id":"e786a51f-eff9-4834-b87d-71eafd355cea","block_type":"box","text":"Treasury, Nicholas F. Brady (the “Brady Plan”). Brady Plan debt restructurings have been implemented in a number of","page_number":75,"box":{"x":68,"y":596,"width":837,"height":12}},{"id":"7aa35129-e56a-4c71-a3b5-60f717cd9c85","block_type":"box","text":"countries, including: Argentina, Bolivia, Brazil, Bulgaria, Costa Rica, the Dominican Republic, Ecuador, Jordan, Mexico,","page_number":75,"box":{"x":69,"y":612,"width":839,"height":11}},{"id":"92e3b85c-4dcc-48dc-8d5f-d9fd32c1ff6d","block_type":"box","text":"Niger, Nigeria, Panama, Peru, the Philippines, Poland, Uruguay, Venezuela, and Vietnam. Beginning in the early","page_number":75,"box":{"x":70,"y":627,"width":786,"height":11}},{"id":"b61c5703-2f71-433b-b370-7d828b578b97","block_type":"box","text":"2000s, cer tain countries began retiring their Brady Bonds, including Brazil, Colombia, Mexico, the Philippines, and","page_number":75,"box":{"x":69,"y":642,"width":814,"height":11}},{"id":"8b318c65-d66a-4ae4-9d27-e6fa2267118d","block_type":"box","text":"Venezuela.","page_number":75,"box":{"x":68,"y":657,"width":75,"height":9}},{"id":"3c685be3-312a-4322-b29c-12276610e91e","block_type":"box","text":"Brady Bonds may be collateralized or uncollateralized, are issued in various currencies (primarily the U.S. dollar)","page_number":75,"box":{"x":102,"y":680,"width":798,"height":11}},{"id":"df6930e8-1a33-4266-81a2-421a6d60d11b","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":75,"box":{"x":69,"y":695,"width":780,"height":11}},{"id":"720dd4d1-3d1e-4275-99c8-e2585dba6300","block_type":"box","text":"Securities. U.S. dollar-denominated, collateralized Brady Bonds, which may be fixed rate par bonds or floating rate","page_number":75,"box":{"x":69,"y":710,"width":812,"height":11}},{"id":"ad4d0af5-e059-4b52-97c6-e3fc788e0303","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":75,"box":{"x":69,"y":725,"width":796,"height":11}},{"id":"97b060c2-6c7e-4673-93a0-2df436efafa0","block_type":"box","text":"same maturity as the Brady Bonds. Interest payments on these Brady Bonds generally are collateralized on a one","page_number":75,"box":{"x":69,"y":740,"width":812,"height":11}},{"id":"fdd67d29-9a08-4784-b19c-c70e872d30cf","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":75,"box":{"x":68,"y":755,"width":823,"height":11}},{"id":"ddded212-9c38-4d56-af89-65c4ba973e46","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":75,"box":{"x":68,"y":770,"width":833,"height":12}},{"id":"d5c76b93-cdc7-4556-92e0-82b2e1d3f758","block_type":"box","text":"interest payments based on the applicable interest rate at that time and is adjusted at regular intervals thereafter.","page_number":75,"box":{"x":70,"y":785,"width":816,"height":12}},{"id":"af65b703-8a47-4720-8304-0fc7cfa796a2","block_type":"box","text":"Cer tain Brady Bonds are entitled to “value recovery payments” in cer tain circumstances, which in effect constitute","page_number":75,"box":{"x":69,"y":801,"width":818,"height":11}},{"id":"6746fee2-1cbf-45d4-9718-df205f2365c6","block_type":"box","text":"supplemental interest payments but generally are not collateralized. Brady Bonds are often viewed as having three or","page_number":75,"box":{"x":69,"y":816,"width":835,"height":11}},{"id":"618a4634-9e44-474e-a13c-43d18d9ed44b","block_type":"box","text":"four valuation components: (i) the collateralized repayment of principal at final maturity; (ii) the collateralized interest","page_number":75,"box":{"x":68,"y":831,"width":832,"height":11}},{"id":"68968d16-5951-4afe-97e2-813551ee52d7","block_type":"box","text":"payments; (iii) the uncollateralized interest payments; and (iv) any uncollateralized repayment of principal at maturity","page_number":75,"box":{"x":70,"y":846,"width":828,"height":11}},{"id":"52bf39db-2418-458f-8106-1a15678152b1","block_type":"box","text":"(the uncollateralized amounts constitute the “residual risk”).","page_number":75,"box":{"x":69,"y":861,"width":430,"height":11}},{"id":"01d27f4f-4c07-4228-bf62-e438fe5cd8a2","block_type":"box","text":"Brady Bonds involve various risk factors described above associated with investing in foreign securities, including","page_number":75,"box":{"x":102,"y":884,"width":807,"height":11}},{"id":"d5e7f896-ca94-4c16-8fa4-eafb219c9a06","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":75,"box":{"x":68,"y":899,"width":838,"height":11}},{"id":"d5b7f0fe-703e-4b0e-a424-fc79a7b2afb5","block_type":"box","text":"II-40","page_number":75,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7dd88ac6-88c1-43d4-a4c0-77f14ef01e23","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":75,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a6ee6a65-5253-4c2d-aa99-4ef69ac6431d","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":76,"box":{"x":70,"y":45,"width":819,"height":11}},{"id":"d545a451-a62d-4935-8106-81a5b675dc39","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":76,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"40c8a0dd-6811-40eb-900d-3d8474518d45","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":76,"box":{"x":68,"y":75,"width":841,"height":11}},{"id":"847e87fb-4e4b-493e-b5a1-c8b698446c11","block_type":"box","text":"loss of interest or principal on any of its holdings.","page_number":76,"box":{"x":70,"y":90,"width":351,"height":11}},{"id":"c09c5b41-28e0-406f-a42b-0cd6f823c3d2","block_type":"box","text":"China Investments Risk.","page_number":76,"box":{"x":102,"y":113,"width":171,"height":9}},{"id":"7a8cada7-b91f-44e7-9985-7574c7110e1c","block_type":"box","text":"Investments in securities of companies domiciled in the People’s Republic of China (“China” or the “PRC”),","page_number":76,"box":{"x":102,"y":135,"width":763,"height":11}},{"id":"275bef53-4f0a-49d0-87ed-22298a149edb","block_type":"box","text":"including cer tain Hong Kong-listed and U.S.-listed securities, involve a high degree of risk and special considerations","page_number":76,"box":{"x":70,"y":150,"width":830,"height":12}},{"id":"91da0651-2938-4e3d-a953-338f72b6f4be","block_type":"box","text":"not typically associated with investing in the U.S. securities markets. Such heightened risks include, among others,","page_number":76,"box":{"x":69,"y":166,"width":821,"height":11}},{"id":"2dc6b438-53b4-42b6-8372-1dd9840ed8bd","block_type":"box","text":"an authoritarian government, popular unrest associated with demands for improved political, economic and social","page_number":76,"box":{"x":69,"y":181,"width":809,"height":11}},{"id":"a3c59f94-4dea-4def-ad7e-d8960603d8b6","block_type":"box","text":"conditions, the impact of regional conflict on the economy and hostile relations with other countries.","page_number":76,"box":{"x":69,"y":196,"width":713,"height":11}},{"id":"8e20e1b9-0661-455c-8e94-90b7fc1aea52","block_type":"box","text":"Military conflicts, either in response to internal social unrest or conflicts with other countries, could disrupt","page_number":76,"box":{"x":102,"y":218,"width":762,"height":12}},{"id":"64410bda-2cbe-4bfd-a342-744e0ad996f2","block_type":"box","text":"economic development. The Chinese economy is vulnerable to the long-running disagreements and religious and","page_number":76,"box":{"x":69,"y":234,"width":800,"height":11}},{"id":"5ace4f2c-1465-4162-9d64-05e08e828166","block_type":"box","text":"nationalist disputes with Tibet and the Xinjiang region. Since 1997, there have been tensions between the Chinese","page_number":76,"box":{"x":69,"y":249,"width":820,"height":11}},{"id":"a366ff35-1706-4157-9efc-1ff19c07099f","block_type":"box","text":"government and many people in Hong Kong who perceive China as tightening control over Hong Kong’s semi","page_number":76,"box":{"x":68,"y":264,"width":777,"height":11}},{"id":"39a742a1-379c-4ea8-95b8-682bed7154d9","block_type":"box","text":"autonomous liberal political, economic, legal, and social framework. Protests and unrest have increased tensions","page_number":76,"box":{"x":69,"y":279,"width":809,"height":11}},{"id":"bddba651-1820-43ea-b0b2-2b9a25bcdebd","block_type":"box","text":"even fur ther. Due to the interconnected nature of the Hong Kong and Chinese economies, this instability in Hong","page_number":76,"box":{"x":69,"y":294,"width":805,"height":11}},{"id":"f70ad787-b6f1-460f-a43b-87de30d98eef","block_type":"box","text":"Kong may cause uncer tainty in the Hong Kong and Chinese markets. China has a complex territorial dispute","page_number":76,"box":{"x":70,"y":309,"width":770,"height":11}},{"id":"b27ceee9-772a-4af6-bcd1-d42bab0e3cb7","block_type":"box","text":"regarding the sovereignty of Taiwan and has made threats of invasion. Taiwan-based companies and individuals are","page_number":76,"box":{"x":69,"y":324,"width":821,"height":12}},{"id":"8b8196b3-5092-4d5a-8931-00a0ac8193fb","block_type":"box","text":"significant investors in China. The continuing hostility between China and Taiwan may have an adverse impact on the","page_number":76,"box":{"x":69,"y":339,"width":831,"height":12}},{"id":"ee96bc3f-5728-49b6-b330-a2610b469d3b","block_type":"box","text":"value of the Fund’s investments in China or Taiwan, may cause a suspension in a Fund’s ability to trade in cer tain","page_number":76,"box":{"x":68,"y":355,"width":812,"height":11}},{"id":"19fcf1b3-d7c4-4571-aa30-f1969e6d3996","block_type":"box","text":"securities or other assets or may otherwise make such investments impracticable or impossible. Any escalation of","page_number":76,"box":{"x":69,"y":370,"width":818,"height":11}},{"id":"f8c62224-fa5d-4352-ac19-7f75831e6426","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":76,"box":{"x":69,"y":385,"width":769,"height":11}},{"id":"61a549ac-5a60-4166-8bf0-60b35bb5af41","block_type":"box","text":"investments in both countries and the region. In addition, China has strained international relations with Japan, India,","page_number":76,"box":{"x":70,"y":400,"width":836,"height":11}},{"id":"f8fafeee-22ee-4153-af49-b500fa3a8fc4","block_type":"box","text":"the Philippines and other neighbors due to territorial disputes, historical animosities and other defense concerns.","page_number":76,"box":{"x":68,"y":415,"width":810,"height":11}},{"id":"b0af745c-e2c2-45d6-a2ca-7366c1e5b517","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":76,"box":{"x":70,"y":430,"width":813,"height":11}},{"id":"ae1a3371-2c62-40d1-a010-2157d55dc13c","block_type":"box","text":"military conflict. Additionally, China is alleged to have par ticipated in state-sponsored cyberattacks against foreign","page_number":76,"box":{"x":69,"y":445,"width":811,"height":12}},{"id":"80a1d7ce-8a53-47b6-ac6e-2784fa436f99","block_type":"box","text":"companies and foreign governments. Actual and threatened responses to such activity and strained international","page_number":76,"box":{"x":69,"y":460,"width":804,"height":12}},{"id":"260b8b4d-cf3f-4192-b111-f03747de3f00","block_type":"box","text":"relations, including purchasing restrictions, sanctions, tariffs or cyberattacks on the Chinese government or Chinese","page_number":76,"box":{"x":69,"y":475,"width":829,"height":12}},{"id":"e5999424-72fc-458b-a38e-aeeb4985de2e","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":76,"box":{"x":69,"y":491,"width":825,"height":11}},{"id":"6f6295df-57c1-4d53-b8fd-0ca71dca4106","block_type":"box","text":"affected by military events on the Korean peninsula or internal instability within Nor th Korea. These situations may","page_number":76,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"fa130c52-291e-4565-abe5-15f9eaf39b8c","block_type":"box","text":"cause uncer tainty in the Chinese market and may adversely affect the per formance of the Chinese economy.","page_number":76,"box":{"x":69,"y":521,"width":776,"height":11}},{"id":"ade55ad5-7ba7-47c2-90a2-e4c594bfdbb9","block_type":"box","text":"The Chinese government has implemented economic reforms in order to liberalize trade policy, promote foreign","page_number":76,"box":{"x":101,"y":543,"width":792,"height":12}},{"id":"a628dcc4-f220-4d15-a1ab-12f6c1f3a933","block_type":"box","text":"investment in the economy, reduce government control of the economy and develop market mechanisms. However,","page_number":76,"box":{"x":70,"y":559,"width":818,"height":11}},{"id":"af185b3c-2d4a-4111-9f09-d3da8024b1f7","block_type":"box","text":"the Chinese government still exercises substantial influence over many aspects of the private sector and may own or","page_number":76,"box":{"x":68,"y":574,"width":835,"height":11}},{"id":"5ce4e33e-d3ce-45dc-b87b-200a61fc0529","block_type":"box","text":"control many companies. Chinese companies, such as those in the financial services or technology sectors, and","page_number":76,"box":{"x":69,"y":589,"width":802,"height":11}},{"id":"156bebea-a89c-4c9e-98c0-700015933e5c","block_type":"box","text":"potentially other sectors in the future, are subject to the risk that Chinese authorities can intervene in their","page_number":76,"box":{"x":70,"y":604,"width":763,"height":11}},{"id":"af9f4467-2bb8-4905-b30f-c0386f3bccfb","block_type":"box","text":"operations and structure. The Chinese government continues to maintain a major role in economic policymaking and","page_number":76,"box":{"x":69,"y":619,"width":829,"height":11}},{"id":"77c0f7ec-1081-4213-9678-2a9cd00e067c","block_type":"box","text":"investing in China involves risk of loss due to expropriation, nationalization, confiscation of assets and proper ty or","page_number":76,"box":{"x":70,"y":634,"width":813,"height":12}},{"id":"3cb12a13-77c5-41e4-a855-b1cd322cd8a5","block_type":"box","text":"the imposition of restrictions on foreign investments and on repatriation of capital invested.","page_number":76,"box":{"x":68,"y":649,"width":653,"height":12}},{"id":"c6e46df7-2aa0-4b43-97b4-54127d255480","block_type":"box","text":"The Chinese government may intervene in the Chinese financial markets, such as by the imposition of trading","page_number":76,"box":{"x":101,"y":672,"width":783,"height":11}},{"id":"4028e4aa-7fb5-40cc-97c3-21505a4e09bb","block_type":"box","text":"restrictions, a ban on “naked” shor t selling or the suspension of shor t selling for cer tain stocks. This may affect","page_number":76,"box":{"x":69,"y":687,"width":805,"height":11}},{"id":"18f3ff58-c28a-40b9-9e15-76ba80a5bc24","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":76,"box":{"x":69,"y":702,"width":827,"height":11}},{"id":"615d962d-de3a-4581-bf03-e3877d7acb8b","block_type":"box","text":"Funds. Fur thermore, such market interventions may have a negative impact on market sentiment which may in turn","page_number":76,"box":{"x":70,"y":718,"width":821,"height":11}},{"id":"5c84332f-1a31-4319-aa19-df0a29e14754","block_type":"box","text":"affect the per formance of the securities markets and as a result the per formance of the Funds.","page_number":76,"box":{"x":69,"y":732,"width":683,"height":11}},{"id":"e973364b-d0e7-4b14-96b2-360719aafae3","block_type":"box","text":"In addition, there is less regulation and monitoring of Chinese securities markets and the activities of investors,","page_number":76,"box":{"x":102,"y":755,"width":797,"height":11}},{"id":"e726764a-2778-4f39-a68b-cd230f174aeb","block_type":"box","text":"brokers and other par ticipants than in the United States. Accordingly, issuers of securities in China, including","page_number":76,"box":{"x":69,"y":770,"width":779,"height":12}},{"id":"9574a410-0876-4df5-aff0-dc04d17447f2","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":76,"box":{"x":69,"y":785,"width":822,"height":12}},{"id":"eb0b86f8-6d12-4fdb-a189-2af4b0cb77ee","block_type":"box","text":"issuers with respect to such matters as insider trading rules, tender offer regulation, accounting standards or auditor","page_number":76,"box":{"x":70,"y":801,"width":836,"height":11}},{"id":"8a902bb4-989a-4b47-83b4-ee67bc0a85b5","block_type":"box","text":"oversight, stockholder proxy requirements and the requirements mandating timely and accurate disclosure of","page_number":76,"box":{"x":69,"y":816,"width":778,"height":11}},{"id":"ac59d256-ec7b-45f0-8dff-2969d9e6cb46","block_type":"box","text":"information. Securities markets in China are in the process of change and fur ther development. This may lead to","page_number":76,"box":{"x":70,"y":831,"width":803,"height":11}},{"id":"0e58a8b0-24f9-4921-a95f-71a143009a7e","block_type":"box","text":"trading volatility, difficulty in the settlement and recording of transactions and difficulty in interpreting and applying","page_number":76,"box":{"x":68,"y":846,"width":816,"height":11}},{"id":"2f04239a-1e9f-48bf-8883-394c9e4d51c7","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":76,"box":{"x":68,"y":861,"width":816,"height":11}},{"id":"3cd1a0d8-74fd-41df-b374-84d769ca36dc","block_type":"box","text":"settlement and administration of securities in China that is customary in more developed markets. In par ticular,","page_number":76,"box":{"x":69,"y":876,"width":798,"height":11}},{"id":"ce75e809-d1ce-4594-b186-3ebc3c4e57e5","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":76,"box":{"x":68,"y":891,"width":826,"height":12}},{"id":"1180ddd3-5786-4704-a86c-9b5c420c0505","block_type":"box","text":"sub-custodian.","page_number":76,"box":{"x":69,"y":907,"width":102,"height":8}},{"id":"ddf31085-0154-4165-8079-1530018861a7","block_type":"box","text":"II-41","page_number":76,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"ed45c571-007a-4715-915a-e01f81039ac3","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":76,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"41dd08ec-9378-42d2-a03e-7f43d0c29333","block_type":"box","text":"There may be significant obstacles to obtaining information necessary for investigations into or litigation against","page_number":77,"box":{"x":101,"y":45,"width":801,"height":11}},{"id":"5fa83dcb-56a2-45f2-a6da-bd9199631191","block_type":"box","text":"Chinese companies, and shareholders may have limited legal remedies. The Funds do not select investments based","page_number":77,"box":{"x":69,"y":60,"width":829,"height":11}},{"id":"2127862a-4834-4f2e-95f8-ee5912a315f6","block_type":"box","text":"on investor protection considerations.","page_number":77,"box":{"x":69,"y":75,"width":268,"height":11}},{"id":"3dc0755e-b631-4bc6-ba54-679d58d32275","block_type":"box","text":"The Chinese government historically took positions that prevented the U.S. Public Company Accounting Oversight","page_number":77,"box":{"x":101,"y":98,"width":806,"height":11}},{"id":"7d77af31-1ca7-4997-8404-40cbec14773e","block_type":"box","text":"Board (“PCAOB”) from inspecting the audit work and practices of accounting firms in mainland China and Hong Kong","page_number":77,"box":{"x":70,"y":113,"width":829,"height":11}},{"id":"67b8bf1a-d8f5-4504-90b5-8686b03ecb40","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":77,"box":{"x":68,"y":128,"width":810,"height":11}},{"id":"bd282f70-3777-4b4c-8814-5cc90c8d396e","block_type":"box","text":"Protocol with the China Securities Regulatory Commission and the Ministry of Finance of the PRC, which marked the","page_number":77,"box":{"x":69,"y":143,"width":829,"height":11}},{"id":"6cae3713-2fa3-4fd6-94cb-84aa1b40154e","block_type":"box","text":"first step toward opening access for the PCAOB to inspect and investigate registered public accounting firms","page_number":77,"box":{"x":68,"y":158,"width":774,"height":11}},{"id":"c8c8c6cc-0bdf-46b6-8869-0833a4265aed","block_type":"box","text":"headquar tered in mainland China and Hong Kong completely in accordance with U.S. law. However, as this","page_number":77,"box":{"x":69,"y":173,"width":760,"height":11}},{"id":"c4aaacdd-d5e8-481a-9120-c11241b6ef9b","block_type":"box","text":"development is relatively recent, the implementation of the Statement of Protocol remains to be tested. Audits","page_number":77,"box":{"x":69,"y":188,"width":788,"height":11}},{"id":"bdcc38d3-5abb-44cd-a03f-f93bdb64419c","block_type":"box","text":"per formed by PCAOB-registered accounting firms in mainland China and Hong Kong may be less reliable than those","page_number":77,"box":{"x":70,"y":203,"width":822,"height":12}},{"id":"dbe152f8-3224-4162-9d43-0576fb0e82ab","block_type":"box","text":"per formed by firms subject to PCAOB inspection. Accordingly, information about the Chinese securities in which the","page_number":77,"box":{"x":70,"y":218,"width":821,"height":12}},{"id":"12c5aa71-d914-4439-b256-8baabf0d1615","block_type":"box","text":"Funds invest may be less reliable or complete. Under amendments to the Sarbanes-Oxley Act enacted in December","page_number":77,"box":{"x":70,"y":234,"width":820,"height":11}},{"id":"86fa8d50-7f5b-4b5d-b20c-2ad1e2082990","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":77,"box":{"x":69,"y":249,"width":805,"height":11}},{"id":"f587d219-6f15-494b-97bd-3901f7ddb518","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":77,"box":{"x":69,"y":264,"width":816,"height":11}},{"id":"651adc10-8ece-45e5-be0c-b130d2859b12","block_type":"box","text":"accounting firm.","page_number":77,"box":{"x":69,"y":279,"width":112,"height":11}},{"id":"86fad67b-b865-4fd2-a4bc-34c5079e0c7c","block_type":"box","text":"The Renminbi (“RMB”) is currently not a freely conver tible currency and is subject to foreign exchange control","page_number":77,"box":{"x":101,"y":302,"width":780,"height":11}},{"id":"1427b7c5-28ac-438e-9219-f99e2acd7868","block_type":"box","text":"policies and repatriation restrictions imposed by the Chinese government. The imposition of currency controls may","page_number":77,"box":{"x":70,"y":317,"width":815,"height":11}},{"id":"9a392be6-6761-4f11-bb60-0990805d1414","block_type":"box","text":"negatively impact per formance and liquidity of the Funds as capital may become trapped in the PRC. The Funds could","page_number":77,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"89563738-9980-4285-b6c6-fface08ca855","block_type":"box","text":"be adversely affected by delays in, or a refusal to grant, any required governmental approval for repatriation of","page_number":77,"box":{"x":69,"y":347,"width":787,"height":11}},{"id":"48c37dc2-0467-4423-9bdb-660e7b5dcf48","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":77,"box":{"x":69,"y":362,"width":837,"height":11}},{"id":"dc2a7f61-b1b1-430b-ad2e-ff21316d11c4","block_type":"box","text":"which have a substantial por tion of their operations in, the PRC may require the Funds to adopt special procedures,","page_number":77,"box":{"x":68,"y":377,"width":825,"height":11}},{"id":"1ccfdd59-1464-4d5f-8ed3-d9307470a6f9","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":77,"box":{"x":69,"y":392,"width":828,"height":12}},{"id":"f9ec7e24-e94a-4cc9-882f-79f5fa159e6c","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":77,"box":{"x":70,"y":408,"width":812,"height":11}},{"id":"1df98524-449d-4ff8-a236-0f0a41bd9ea5","block_type":"box","text":"connection with conversions between the two separate types of RMB, the onshore RMB (“CNY”) and the offshore","page_number":77,"box":{"x":69,"y":423,"width":808,"height":11}},{"id":"46d8eb96-ae22-48ae-bb06-36b6114ddfba","block_type":"box","text":"RMB (“CNH”).","page_number":77,"box":{"x":70,"y":438,"width":97,"height":11}},{"id":"ba5506a4-654f-4c1a-ac39-b8992021a448","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":77,"box":{"x":102,"y":460,"width":802,"height":12}},{"id":"d4f81f98-a240-4e1a-8310-e62b86376149","block_type":"box","text":"result of foreign ownership restrictions. In a VIE structure, a Chinese operating company establishes a shell company","page_number":77,"box":{"x":69,"y":475,"width":837,"height":12}},{"id":"9b3764d4-9034-4e8e-a7f9-6b520b2de785","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":77,"box":{"x":70,"y":491,"width":822,"height":11}},{"id":"dd4be3c2-b869-4f9a-8574-c3d248217e38","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":77,"box":{"x":70,"y":506,"width":775,"height":11}},{"id":"1271ebb4-bc0a-487a-a3ac-af3bcc92f0cf","block_type":"box","text":"company directly or indirectly enters into contracts with the Chinese operating company under Chinese law. These","page_number":77,"box":{"x":69,"y":521,"width":809,"height":11}},{"id":"685a8427-e48b-4e01-a997-84dcc74f4a99","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":77,"box":{"x":69,"y":536,"width":803,"height":11}},{"id":"294606fb-1217-4f5e-a2e5-38e4be6318ab","block_type":"box","text":"represent equity ownership in the operating company.","page_number":77,"box":{"x":69,"y":551,"width":380,"height":11}},{"id":"8e7311d0-6190-4f5e-9f04-327d92d0f8fc","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":77,"box":{"x":101,"y":574,"width":801,"height":11}},{"id":"9e167599-f818-4f2d-9222-c11bc5e9a421","block_type":"box","text":"formally recognized under Chinese law. The Chinese government has provided guidance to and placed restrictions on","page_number":77,"box":{"x":68,"y":589,"width":833,"height":11}},{"id":"af17f716-9456-494c-8b5d-1842e440ee29","block_type":"box","text":"Chinese-based companies raising capital offshore, including through VIEs. In 2023, the China Securities Regulatory","page_number":77,"box":{"x":69,"y":604,"width":825,"height":11}},{"id":"9ecad619-a6e6-41e5-b44e-3eafb59abc97","block_type":"box","text":"Commission (“CSRC”) released new rules that permit the use of VIE structures, provided they abide by Chinese laws","page_number":77,"box":{"x":69,"y":619,"width":832,"height":11}},{"id":"f95d6440-1117-44d6-87e0-7c3be391fc8b","block_type":"box","text":"and register with the CSRC. The rules, however, may cause Chinese companies to undergo greater scrutiny and add","page_number":77,"box":{"x":69,"y":634,"width":826,"height":12}},{"id":"df1f1fbd-24ff-43dc-b23d-7706f7e88d5e","block_type":"box","text":"costs to VIE structures. Intervention, rulemaking or guidance by the Chinese government with respect to VIE","page_number":77,"box":{"x":69,"y":649,"width":770,"height":12}},{"id":"39b88042-da3e-4690-a117-df4a7c0f2ad5","block_type":"box","text":"structures or the non-enforcement of VIE-related contractual rights could significantly affect the operating company’s","page_number":77,"box":{"x":69,"y":664,"width":829,"height":12}},{"id":"df0b7821-1649-467a-948c-66296ca69453","block_type":"box","text":"business in China, the enforceability of the U.S.-listed shell company’s contractual arrangements with the Chinese","page_number":77,"box":{"x":69,"y":680,"width":815,"height":11}},{"id":"f72ebef5-c3fb-4eac-9d1e-ea0e41ecfb0d","block_type":"box","text":"company and the value of the U.S.-listed stock. Fur ther, the VIE contractual arrangement would likely be subject to","page_number":77,"box":{"x":69,"y":695,"width":815,"height":11}},{"id":"3399378e-8bf5-4098-aa92-6d850f9911dd","block_type":"box","text":"Chinese law and jurisdiction, and remedies available to the U.S.-listed shell company are uncer tain and could be","page_number":77,"box":{"x":69,"y":710,"width":802,"height":11}},{"id":"063b6782-0c37-4214-808e-d9e1bdd075fa","block_type":"box","text":"ineffective. In addition to the risk of government intervention, investments through a VIE structure are subject to the","page_number":77,"box":{"x":70,"y":725,"width":828,"height":11}},{"id":"71c7f424-162a-4f9c-b7fd-bc3b45a5e619","block_type":"box","text":"risk that the China-based company (or its officers, directors, or Chinese equity owners) may breach those contractual","page_number":77,"box":{"x":69,"y":740,"width":833,"height":11}},{"id":"5b6c1f4d-f9d2-43e5-b3f3-3fac006be5ea","block_type":"box","text":"arrangements, or Chinese law changes in a way that adversely affects the enforceability of these arrangements, or","page_number":77,"box":{"x":69,"y":755,"width":819,"height":11}},{"id":"4c19c5a3-95cd-42f3-8f62-812798aba17c","block_type":"box","text":"those contracts are otherwise not enforceable under Chinese law, in which case the Fund may suffer significant","page_number":77,"box":{"x":68,"y":770,"width":798,"height":12}},{"id":"52f88075-21de-489e-9340-a05caccffa97","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":77,"box":{"x":70,"y":785,"width":833,"height":12}},{"id":"3d4dd4e3-ee3f-4905-a2ac-f599b76e89b2","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":77,"box":{"x":69,"y":801,"width":837,"height":11}},{"id":"991a61a4-df81-415a-965e-c9072a3acc58","block_type":"box","text":"generally or with respect to specific industries, could result in significant, and possibly permanent and/or total,","page_number":77,"box":{"x":68,"y":816,"width":792,"height":11}},{"id":"bb6357f8-a673-43eb-be39-e69ffad8b279","block_type":"box","text":"losses to a Fund.","page_number":77,"box":{"x":70,"y":831,"width":120,"height":9}},{"id":"76a7ffc3-ab1c-4e84-8a6d-a497ab6e6329","block_type":"box","text":"While the Chinese economy has experienced past periods of rapid growth, there is no assurance that such","page_number":77,"box":{"x":101,"y":853,"width":760,"height":12}},{"id":"4bc8ee17-14e3-42bc-9729-dbfe8b093532","block_type":"box","text":"growth rates will recur. Other economic challenges for China include indebtedness, weak consumer demand, trade","page_number":77,"box":{"x":68,"y":869,"width":815,"height":11}},{"id":"a1bff87d-a2a4-4f89-9cd1-8fecbd057988","block_type":"box","text":"tensions, and an aging population. China continues to face pressure from its trading par tners over its expor ting of its","page_number":77,"box":{"x":68,"y":884,"width":837,"height":11}},{"id":"28b832a4-85d1-4e57-a7be-6e55381d9957","block_type":"box","text":"excess industrial capacity and overall approach to economic management. China’s economy is heavily dependent on","page_number":77,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"1118ca99-8139-4489-b64f-ddd4acac8436","block_type":"box","text":"II-42","page_number":77,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b80fd9f0-cc13-4476-823a-703db5bb6710","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":77,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a2cac9b7-a7d1-495d-bbcb-ff558b66e812","block_type":"box","text":"expor t growth. Reduction in spending on Chinese products and services, supply chain diversification, institution of","page_number":78,"box":{"x":69,"y":45,"width":815,"height":11}},{"id":"0d6a1fea-6bfb-48d5-9e28-f888284be675","block_type":"box","text":"additional tariffs, sanctions or other trade barriers (including as a result of heightened trade tensions between China","page_number":78,"box":{"x":69,"y":60,"width":832,"height":11}},{"id":"e6d1e58f-c13f-4fca-a026-af5902241c8c","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":78,"box":{"x":69,"y":75,"width":765,"height":11}},{"id":"f47d363a-8f8b-4a61-af6c-d0f29cabe122","block_type":"box","text":"economies of China’s key trading par tners may have an adverse impact on the Chinese economy and the companies","page_number":78,"box":{"x":69,"y":90,"width":833,"height":11}},{"id":"9b519204-73e6-4dc9-9ab0-f33ada7d416d","block_type":"box","text":"in which a Fund invests. Cer tain Chinese companies (which may change from time to time) are directly or indirectly","page_number":78,"box":{"x":70,"y":105,"width":816,"height":11}},{"id":"fdd2a512-9e17-434d-8cde-dc7e69051751","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":78,"box":{"x":69,"y":120,"width":824,"height":12}},{"id":"63c3be12-5503-4a33-be5f-3e878853b4dc","block_type":"box","text":"rights or other concerns of such government. For example, cer tain foreign technology companies are subject to U.S.","page_number":78,"box":{"x":69,"y":135,"width":825,"height":12}},{"id":"7b2ce224-5050-4f00-845b-9fc8e298e540","block_type":"box","text":"expor t controls as those companies are believed to pose a risk to U.S. interests. The U.S. also bans impor ts of","page_number":78,"box":{"x":69,"y":150,"width":798,"height":11}},{"id":"3ff46653-6ac9-4ace-bfeb-37ac4d5fcdac","block_type":"box","text":"goods produced in cer tain regions of China or by cer tain Chinese companies due to concerns about forced labor.","page_number":78,"box":{"x":68,"y":166,"width":805,"height":11}},{"id":"b781b6c8-b8b3-4e14-ba03-d132a9f2bb57","block_type":"box","text":"Such restrictions may have unanticipated and adverse effects on the Chinese economy and companies. Any action","page_number":78,"box":{"x":69,"y":181,"width":817,"height":11}},{"id":"7ec83cbb-6d8e-4e7d-b620-44a00da0356f","block_type":"box","text":"that targets Chinese financial markets or securities exchanges could inter fere with orderly trading, delay settlement","page_number":78,"box":{"x":68,"y":196,"width":825,"height":11}},{"id":"f29cadcf-1bc8-409d-9aa8-e985ecf92c00","block_type":"box","text":"or cause market disruptions. Cer tain companies may be subject to economic or trade restrictions (but not investment","page_number":78,"box":{"x":69,"y":211,"width":839,"height":11}},{"id":"72896ec8-a304-480d-9119-a0d8ac2e7367","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":78,"box":{"x":69,"y":226,"width":815,"height":11}},{"id":"8f2319a2-3e31-41da-9aea-8836e75f0b9d","block_type":"box","text":"such government. So long as these restrictions do not include restrictions on investments, the Fund may invest in","page_number":78,"box":{"x":69,"y":241,"width":812,"height":11}},{"id":"3d30c053-1468-4c0b-94d7-17da52f8d8a2","block_type":"box","text":"such companies.","page_number":78,"box":{"x":69,"y":257,"width":119,"height":10}},{"id":"7cd36603-a6af-4596-b664-b6e168ac9153","block_type":"box","text":"The tax laws and regulations in the PRC are subject to change, including the issuance of authoritative guidance","page_number":78,"box":{"x":101,"y":279,"width":792,"height":11}},{"id":"7ebe146e-ce67-4084-9411-9e61138c76f6","block_type":"box","text":"or enforcement, possibly with retroactive effect. The interpretation, applicability and enforcement of such laws by PRC","page_number":78,"box":{"x":69,"y":294,"width":840,"height":11}},{"id":"3acbd338-306e-4417-bad5-831127f97148","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":78,"box":{"x":68,"y":309,"width":815,"height":11}},{"id":"e8d6d723-b9b5-47b5-922e-06440e0e5c42","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":78,"box":{"x":69,"y":324,"width":823,"height":12}},{"id":"fec14e65-cee0-4059-a81f-be12dfd13eec","block_type":"box","text":"on a Fund and its investors, par ticularly in relation to capital gains withholding tax imposed upon non-residents. In","page_number":78,"box":{"x":69,"y":340,"width":812,"height":11}},{"id":"a39d2bab-9359-4c5b-af5c-7cc48274c7a0","block_type":"box","text":"addition, the accounting, auditing and financial repor ting standards and practices applicable to Chinese companies","page_number":78,"box":{"x":69,"y":355,"width":821,"height":11}},{"id":"805acc31-6414-4a8f-9869-5217dfb95a79","block_type":"box","text":"may be less rigorous, and may result in significant differences between financial statements prepared in accordance","page_number":78,"box":{"x":69,"y":370,"width":832,"height":11}},{"id":"613bf442-3026-45c7-b7a3-e7cf29ee66b1","block_type":"box","text":"with PRC accounting standards and practice and those prepared in accordance with international accounting","page_number":78,"box":{"x":68,"y":385,"width":773,"height":11}},{"id":"365bc807-3bf5-4f1f-84d3-0524c43654ed","block_type":"box","text":"standards.","page_number":78,"box":{"x":69,"y":400,"width":74,"height":9}},{"id":"23504085-425f-41d4-af7a-2f13386af8f4","block_type":"box","text":"From time to time and in recent years, China has experienced outbreaks of infectious illnesses and the country","page_number":78,"box":{"x":102,"y":423,"width":794,"height":11}},{"id":"bbb364f6-a991-4d39-9126-6ee60a444845","block_type":"box","text":"may be subject to other public health threats, infectious illnesses, diseases or similar issues in the future. Any","page_number":78,"box":{"x":69,"y":438,"width":792,"height":11}},{"id":"85472bd4-dcaf-4973-b8f3-2ff33552f17c","block_type":"box","text":"spread of an infectious illness, public health threat or similar issue could reduce consumer demand or economic","page_number":78,"box":{"x":69,"y":453,"width":803,"height":11}},{"id":"bd2a3b65-15b9-4b47-bb07-8c7a09e85ea0","block_type":"box","text":"output, result in market closures, travel restrictions or quarantines, and generally have a significant impact on the","page_number":78,"box":{"x":69,"y":468,"width":811,"height":11}},{"id":"1af1a3ed-946b-4ff8-a6ae-54df1772355e","block_type":"box","text":"Chinese economy, which in turn could adversely affect a Fund’s investments.","page_number":78,"box":{"x":69,"y":483,"width":548,"height":11}},{"id":"79c22a23-91e7-4d13-a5b9-fe60d38bee1a","block_type":"box","text":"Risk of Investing through Stock Connect.","page_number":78,"box":{"x":102,"y":506,"width":288,"height":11}},{"id":"837ce3f5-96df-46f4-9121-626c32c059ec","block_type":"box","text":"General","page_number":78,"box":{"x":102,"y":529,"width":55,"height":8}},{"id":"38f5a5e2-2e22-47f3-87a8-f5513114803c","block_type":"box","text":". China A-shares are equity securities of companies domiciled in China that trade on Chinese stock","page_number":78,"box":{"x":158,"y":528,"width":704,"height":12}},{"id":"fd6fa407-7fb5-4e0c-af85-9e477c2d4dc3","block_type":"box","text":"exchanges such as the Shanghai Stock Exchange (“SSE”), the Shenzhen Stock Exchange (“SZSE”) and the Beijing","page_number":78,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"4dc4dccf-d0e9-4078-b055-ff7fc30fe2a3","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":78,"box":{"x":69,"y":559,"width":815,"height":11}},{"id":"f15e353a-5fbe-4e83-a3b4-1df23595f5f3","block_type":"box","text":"than pursuant to available exceptions, such as through a qualified foreign investor approved pursuant to the relevant","page_number":78,"box":{"x":68,"y":574,"width":833,"height":11}},{"id":"045959ad-9208-4b36-bcf1-bf2c6e52408f","block_type":"box","text":"mainland China laws and regulations as may be promulgated and/or amended from time to time (“QFI”).","page_number":78,"box":{"x":69,"y":589,"width":744,"height":11}},{"id":"55415c6f-6752-4709-8f0b-13e7206e66c9","block_type":"box","text":"Investment in eligible exchange traded funds and A-shares listed and traded on the SSE or SZSE (“Stock","page_number":78,"box":{"x":102,"y":612,"width":745,"height":11}},{"id":"da119c39-912e-407a-9156-9ca0981ee367","block_type":"box","text":"Connect Securities”) is also permitted through the Shanghai-Hong Kong Stock Connect program or the Shenzhen","page_number":78,"box":{"x":69,"y":627,"width":807,"height":11}},{"id":"87072e5a-8a24-46c8-b375-f84316be1315","block_type":"box","text":"Hong Kong Stock Connect program, as applicable (each, a “Stock Connect” and collectively, “Stock Connects”). Each","page_number":78,"box":{"x":70,"y":642,"width":834,"height":11}},{"id":"e4590338-9a97-4e28-8588-e67a4f88f531","block_type":"box","text":"Stock Connect is a securities trading and clearing links program established by The Stock Exchange of Hong Kong","page_number":78,"box":{"x":69,"y":657,"width":812,"height":11}},{"id":"f80a68aa-c638-4a42-a726-db70db756bb7","block_type":"box","text":"Limited (“SEHK”), the Hong Kong Securities Clearing Company Limited (“HKSCC”), the SSE or SZSE, as applicable,","page_number":78,"box":{"x":70,"y":672,"width":819,"height":11}},{"id":"77096664-4516-473c-ad83-7aa16fa297ec","block_type":"box","text":"and China Securities Depository and Clearing Corporation Limited (“CSDCC”) that aims to provide mutual stock","page_number":78,"box":{"x":69,"y":687,"width":793,"height":11}},{"id":"9e4cad35-a119-4dd4-b2bb-1f5dfb2e8254","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":78,"box":{"x":69,"y":702,"width":818,"height":12}},{"id":"313651d2-7fc4-4d93-beef-9465c708712b","block_type":"box","text":"through their local securities brokers. Under Stock Connects, a Fund’s trading of Stock Connect Securities listed on","page_number":78,"box":{"x":68,"y":717,"width":824,"height":12}},{"id":"3ad8d8ac-8a2c-41be-8722-ab701c67671a","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":78,"box":{"x":68,"y":732,"width":827,"height":12}},{"id":"a4299c75-0e0b-42ad-91e3-3ed0b4f6aec2","block_type":"box","text":"company established by SEHK.","page_number":78,"box":{"x":69,"y":748,"width":219,"height":11}},{"id":"8fd5ebb2-579d-4ffb-9c09-1ca54b319c9d","block_type":"box","text":"Although no individual investment quotas or licensing requirements apply to investors in Stock Connect, trading","page_number":78,"box":{"x":101,"y":770,"width":794,"height":12}},{"id":"34b8b820-9629-4ed0-8e2d-e70c57b9e016","block_type":"box","text":"through a Stock Connect’s Nor thbound Trading Link is subject to daily investment quota limitations which require that","page_number":78,"box":{"x":68,"y":786,"width":839,"height":11}},{"id":"5e92ecc7-6e40-474e-9a56-bb954325aba4","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":78,"box":{"x":69,"y":801,"width":779,"height":11}},{"id":"39e50f9d-94fc-4879-9348-09f06c7d75c4","block_type":"box","text":"permitted to sell their Stock Connect Securities regardless of the quota). These limitations may restrict a Fund from","page_number":78,"box":{"x":70,"y":816,"width":824,"height":11}},{"id":"0dd5ea64-d1c9-475e-9a61-a175da61b216","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":78,"box":{"x":70,"y":831,"width":827,"height":11}},{"id":"7866e915-cddc-4f7a-85b5-5ac7223c9519","block_type":"box","text":"investment strategy. Investment quotas are also subject to change. Investment in Stock Connect Securities through a","page_number":78,"box":{"x":70,"y":846,"width":837,"height":11}},{"id":"d01fbf09-55ba-487e-a51b-6ad7915c5fa9","block_type":"box","text":"Stock Connect is subject to trading, clearance and settlement procedures that could pose risks to a Fund. Stock","page_number":78,"box":{"x":69,"y":861,"width":802,"height":11}},{"id":"debc44dd-09b2-42c2-b6d9-06bdd02764c7","block_type":"box","text":"Connect Securities purchased through Stock Connects generally may not be sold or otherwise transferred other than","page_number":78,"box":{"x":69,"y":876,"width":831,"height":11}},{"id":"4160cd17-76bf-453b-bbb5-ca39214794f2","block_type":"box","text":"through Stock Connects in accordance with applicable rules. For example, the PRC regulations require that in order","page_number":78,"box":{"x":68,"y":891,"width":821,"height":12}},{"id":"a4c8421d-8694-4917-b88d-495ad6480b3a","block_type":"box","text":"for an investor to sell any Stock Connect Securities on a cer tain trading day, there must be sufficient Stock Connect","page_number":78,"box":{"x":68,"y":906,"width":829,"height":12}},{"id":"1e6f9d31-2908-4b06-9b72-578f031a1d19","block_type":"box","text":"II-43","page_number":78,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"01ac4ee0-10e1-4d7f-b3de-e7ae789f577f","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":78,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b229263e-5e91-464d-8ffb-4d501a914705","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":79,"box":{"x":69,"y":45,"width":797,"height":11}},{"id":"ea4aeee0-80ed-4b7e-a2e1-af3bddc5a484","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":79,"box":{"x":69,"y":60,"width":820,"height":11}},{"id":"2193f568-126a-4e90-80b8-e71a121d2950","block_type":"box","text":"out pre-trade checking on sell orders of cer tain stocks listed on the SSE market (“SSE Securities”) or SZSE market","page_number":79,"box":{"x":69,"y":75,"width":820,"height":11}},{"id":"fb11e3b6-5e59-4d34-884f-12d06d4584c0","block_type":"box","text":"(“SZSE Securities”) of its par ticipants (","page_number":79,"box":{"x":69,"y":90,"width":278,"height":11}},{"id":"a2850710-ce93-4579-ac3a-5bc1b2734974","block_type":"box","text":"i.e.","page_number":79,"box":{"x":349,"y":90,"width":21,"height":9}},{"id":"6901aad8-b5d6-46b1-ab13-c38cc1d7c093","block_type":"box","text":", stock brokers) to ensure that this requirement is satisfied. While shares","page_number":79,"box":{"x":372,"y":90,"width":524,"height":11}},{"id":"3eb5f4fe-da6e-4f90-a528-5ba7bdd3ee5a","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":79,"box":{"x":69,"y":105,"width":815,"height":11}},{"id":"e91153fc-785d-495c-8b2c-6b2660172f6a","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":79,"box":{"x":69,"y":120,"width":810,"height":12}},{"id":"e4330c1d-fadb-446f-ae8d-ec75e6eba1b6","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":79,"box":{"x":69,"y":135,"width":834,"height":12}},{"id":"1aaf329d-dc85-4bc3-bc49-8c5268b4eff6","block_type":"box","text":"services are available in both markets on the corresponding settlement days. Therefore, an investment in Stock","page_number":79,"box":{"x":69,"y":150,"width":799,"height":12}},{"id":"a6a83640-ca65-40d1-8bac-dd6b0eba28d1","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":79,"box":{"x":69,"y":166,"width":797,"height":11}},{"id":"40f6f44d-c389-44e9-9eb6-228114f2b50c","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":79,"box":{"x":69,"y":181,"width":818,"height":11}},{"id":"6efe46ef-5773-4f77-8086-e9232588b9ae","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":79,"box":{"x":68,"y":196,"width":820,"height":11}},{"id":"f57d8dab-e794-4c0b-b7e0-bf8f8a3da962","block_type":"box","text":"be able to sell the Stock Connect Securities on or after day T+1. Fur ther, since all trades of Stock Connect Securities","page_number":79,"box":{"x":69,"y":211,"width":836,"height":11}},{"id":"8395c03b-d741-4908-80ed-e87a67ca5bac","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":79,"box":{"x":69,"y":226,"width":811,"height":11}},{"id":"94bb4688-9fb8-4ca9-a942-1ed09f9e5e9d","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":79,"box":{"x":68,"y":241,"width":815,"height":11}},{"id":"572487b6-3443-4994-aae2-9cfb804eac69","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":79,"box":{"x":69,"y":256,"width":824,"height":11}},{"id":"5d065086-86de-4565-8ac7-fe725e6d4039","block_type":"box","text":"RMB, the Fund will be exposed to currency exchange risk if the Fund conver ts the local currency into RMB for","page_number":79,"box":{"x":70,"y":271,"width":777,"height":12}},{"id":"f8d2f6d1-650b-43cf-b76f-13f69849a4f8","block_type":"box","text":"investments in Stock Connect Securities. A Fund may also incur conversion costs.","page_number":79,"box":{"x":70,"y":287,"width":582,"height":11}},{"id":"a9c3eddb-8b65-4726-ba4a-25c6b69ffe42","block_type":"box","text":"Stock Connect Securities held through the nominee structure under a Stock Connect will be held through HKSCC","page_number":79,"box":{"x":102,"y":309,"width":802,"height":11}},{"id":"43faf653-bb02-42c8-92a1-f0914d8f7a9e","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":79,"box":{"x":69,"y":324,"width":784,"height":12}},{"id":"4801a374-7eab-4c29-a666-89d7b2a3f879","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":79,"box":{"x":69,"y":339,"width":837,"height":12}},{"id":"1f8fd120-1751-4b2a-814c-77f86f5842c1","block_type":"box","text":"clear definition of, and distinction between, legal ownership and beneficial ownership under the PRC laws and there","page_number":79,"box":{"x":69,"y":355,"width":822,"height":11}},{"id":"1f0a3c1e-4672-46b0-ac8e-cc76044c6393","block_type":"box","text":"have been few cases involving a nominee account structure in the PRC cour ts. The exact nature and methods of","page_number":79,"box":{"x":69,"y":370,"width":802,"height":11}},{"id":"da27b8f8-5fc2-4aeb-ae46-943b14329cb2","block_type":"box","text":"enforcement of the rights and interests of a Fund under the PRC laws is also uncer tain. In the unlikely event that","page_number":79,"box":{"x":69,"y":385,"width":805,"height":11}},{"id":"f9765ffb-687e-4352-a5d2-21b3a74d5e65","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":79,"box":{"x":70,"y":400,"width":807,"height":11}},{"id":"d2ef94e8-416e-4c18-a474-3ec1206c541b","block_type":"box","text":"Securities may not be regarded as held for the beneficial ownership of a Fund or as par t of the general assets of","page_number":79,"box":{"x":69,"y":415,"width":805,"height":11}},{"id":"88882b12-4036-4086-a9cd-d323ced60954","block_type":"box","text":"HKSCC available for general distribution to its creditors. Notwithstanding the fact that HKSCC does not claim","page_number":79,"box":{"x":70,"y":430,"width":774,"height":11}},{"id":"7d9bdea8-5e9d-4f08-86a3-22eb97fdd221","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":79,"box":{"x":70,"y":445,"width":816,"height":11}},{"id":"c0e57cc6-67d8-4be3-9eee-ba4bdcc3bfbc","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":79,"box":{"x":69,"y":460,"width":808,"height":12}},{"id":"fbf5ba6d-341a-41ac-b718-326bc021e273","block_type":"box","text":"when it handles corporate actions in respect of such SSE Securities or SZSE Securities. HKSCC monitors the","page_number":79,"box":{"x":68,"y":475,"width":779,"height":11}},{"id":"c54540f3-96b7-4186-8915-5f2a792634c3","block_type":"box","text":"corporate actions affecting SSE Securities and SZSE Securities and keeps par ticipants of Central Clearing and","page_number":79,"box":{"x":69,"y":491,"width":788,"height":11}},{"id":"4ba09a1a-38a6-4c50-bd30-043b2d36d4e2","block_type":"box","text":"Settlement System (“CCASS”) informed of all such corporate actions that require CCASS par ticipants to take steps in","page_number":79,"box":{"x":69,"y":506,"width":839,"height":11}},{"id":"4a1882b4-09d8-4aff-8946-aa9979a8b1d0","block_type":"box","text":"order to par ticipate in them. Investors may only exercise their voting rights by providing their voting instructions to","page_number":79,"box":{"x":69,"y":521,"width":811,"height":11}},{"id":"2d16b56a-52ab-4b5b-8e2f-149ae4273053","block_type":"box","text":"HKSCC through par ticipants of CCASS. All voting instructions from CCASS par ticipants will be consolidated by","page_number":79,"box":{"x":70,"y":536,"width":783,"height":11}},{"id":"44a6a508-64b6-4ef8-b7d4-a7cf7fffbd2f","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":79,"box":{"x":70,"y":551,"width":826,"height":11}},{"id":"e30d4cf0-51b3-416a-9a95-da836763d549","block_type":"box","text":"result, a Fund may suffer difficulties or delays in enforcing its rights in SSE Securities or SZSE Securities.","page_number":79,"box":{"x":69,"y":566,"width":752,"height":11}},{"id":"33f262d0-9265-4f73-bd78-3d5c31e802db","block_type":"box","text":"Hong Kong’s Investor Compensation Fund is established to pay compensation to investors of any nationality who","page_number":79,"box":{"x":102,"y":589,"width":804,"height":11}},{"id":"8952148a-0e2f-46d2-8337-4d3884c69731","block_type":"box","text":"suffer pecuniary losses as a result of default of a licensed intermediary or authorized financial institution in relation","page_number":79,"box":{"x":69,"y":604,"width":826,"height":11}},{"id":"bf8db0b2-c0a6-48a7-929e-c93813b821f2","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":79,"box":{"x":68,"y":619,"width":769,"height":11}},{"id":"9bdc1234-a8b6-48e0-aff5-554deebe72c4","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":79,"box":{"x":70,"y":634,"width":809,"height":11}},{"id":"3b3d4a47-73bf-4af1-8a1c-d7f8262eda62","block_type":"box","text":"SZSE and (ii) in respect of which an order for sale or purchase is permitted to be routed through the Nor thbound","page_number":79,"box":{"x":69,"y":649,"width":801,"height":12}},{"id":"baedc77b-86d4-4fb4-9a4e-e47e54678d17","block_type":"box","text":"Trading Link of a Stock Connect. On the other hand, since a Fund carries out Nor thbound trading through securities","page_number":79,"box":{"x":68,"y":664,"width":822,"height":12}},{"id":"d7ec8eb5-03e9-486b-9876-c72f4a9e65d2","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":79,"box":{"x":69,"y":680,"width":829,"height":11}},{"id":"878c8876-32ab-4d41-a252-63ef56b59f69","block_type":"box","text":"PRC.","page_number":79,"box":{"x":69,"y":695,"width":32,"height":9}},{"id":"48cb84fe-9bc0-4c3e-8c04-5caef6368ab6","block_type":"box","text":"Market par ticipants are able to par ticipate in Stock Connects subject to meeting cer tain information technology","page_number":79,"box":{"x":102,"y":717,"width":796,"height":12}},{"id":"c0c9cebd-d844-4c1e-911b-bd1f47b967ca","block_type":"box","text":"capability, risk management and other requirements as may be specified by the relevant exchange and/or clearing","page_number":79,"box":{"x":69,"y":732,"width":815,"height":12}},{"id":"59835c8c-b14d-48cd-9496-b0e28dc2f367","block_type":"box","text":"house. Fur ther, the “connectivity” in Stock Connects requires routing of orders across the border of Hong Kong and","page_number":79,"box":{"x":69,"y":748,"width":822,"height":11}},{"id":"47d4bcbb-6992-4c54-bcea-02d15ee8415d","block_type":"box","text":"the PRC. This requires the development of new information technology systems on the par t of SEHK and exchange","page_number":79,"box":{"x":68,"y":763,"width":818,"height":11}},{"id":"f5fac2c3-b6b4-4225-a5d4-cc8b71dc24ca","block_type":"box","text":"par ticipants. There is no assurance that the systems of SEHK and market par ticipants will function properly or will","page_number":79,"box":{"x":70,"y":778,"width":813,"height":11}},{"id":"3f05ded0-df37-433b-9b16-4f8ffdfae51e","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":79,"box":{"x":69,"y":793,"width":827,"height":11}},{"id":"65fbdfac-379b-4080-a093-175062394d1b","block_type":"box","text":"function properly, trading in Stock Connect Securities through Stock Connects could be disrupted.","page_number":79,"box":{"x":68,"y":808,"width":695,"height":11}},{"id":"3fe54a02-af7f-433c-a63b-2e41029a9f30","block_type":"box","text":"The Shanghai-Hong Kong Stock Connect program launched in November 2014 and the Shenzhen-Hong Kong","page_number":79,"box":{"x":101,"y":831,"width":772,"height":11}},{"id":"2fed3097-abab-44bd-867f-8e6c964f4325","block_type":"box","text":"Stock Connect program launched in December 2016. Each program does not have an extensive operating history.","page_number":79,"box":{"x":69,"y":846,"width":810,"height":11}},{"id":"fb65bf21-2629-43b5-a6d1-a9533dace36e","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":79,"box":{"x":70,"y":861,"width":798,"height":11}},{"id":"19c83e2b-582a-4fac-bc3f-e21e7c95c6e7","block_type":"box","text":"Hong Kong in connection with operations, legal enforcement and cross-border trades under Stock Connects. In","page_number":79,"box":{"x":70,"y":876,"width":786,"height":11}},{"id":"600e86dc-386f-49f3-bd03-86f50e0c6faa","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":79,"box":{"x":69,"y":891,"width":821,"height":11}},{"id":"e2832293-cb20-4631-a4bd-3d3ccb3143d1","block_type":"box","text":"as a result of such changes. Fur thermore, the securities regimes and legal systems of China and Hong Kong differ","page_number":79,"box":{"x":69,"y":906,"width":819,"height":12}},{"id":"f16b1226-86da-4d5b-bf73-68f66ff07ff9","block_type":"box","text":"II-44","page_number":79,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1d38323d-7270-404e-9864-722bef01e4af","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":79,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"65fa080c-0142-41c1-9deb-a11f922e849a","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":80,"box":{"x":69,"y":45,"width":823,"height":11}},{"id":"f9b13840-4430-43fb-8331-bb3f7b3edb05","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":80,"box":{"x":68,"y":60,"width":814,"height":11}},{"id":"d0d38c70-f6bc-45f9-bc0c-dc670696cc99","block_type":"box","text":"achieve its investment objective may be adversely affected. In addition, a Fund’s investments in Stock Connect","page_number":80,"box":{"x":69,"y":75,"width":793,"height":11}},{"id":"cf0e8377-9104-4c7a-9e08-9613ca355abf","block_type":"box","text":"Securities through Stock Connects are generally subject to Chinese securities regulations and listing rules, among","page_number":80,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"67d34579-df0a-425a-8dfd-b7a401acb215","block_type":"box","text":"other restrictions. Fur ther, different fees, costs and taxes are imposed on foreign investors acquiring Stock Connect","page_number":80,"box":{"x":69,"y":105,"width":828,"height":11}},{"id":"e01d0dfa-66b0-4bf6-acf1-b32ea16c746a","block_type":"box","text":"Securities through Stock Connects, and these fees, costs and taxes may be higher than comparable fees, costs and","page_number":80,"box":{"x":69,"y":120,"width":831,"height":12}},{"id":"0a45ad9c-a871-4514-b3b4-36298f8ac696","block_type":"box","text":"taxes imposed on owners of other securities providing similar investment exposure.","page_number":80,"box":{"x":68,"y":135,"width":596,"height":12}},{"id":"bf4a6c45-9a90-420c-8400-a76dfd3b6e56","block_type":"box","text":"Suspension Risk.","page_number":80,"box":{"x":102,"y":158,"width":122,"height":11}},{"id":"b3704d21-8b65-481a-bd57-f46b12bb0600","block_type":"box","text":"SSE Securities and SZSE Securities may only be bought from, or sold to, a Fund at times when","page_number":80,"box":{"x":231,"y":158,"width":675,"height":11}},{"id":"b9224d9f-0676-44d6-86f8-52b42f68df07","block_type":"box","text":"the relevant SSE Securities and SZSE Securities may be sold or purchased on the relevant Chinese stock exchange.","page_number":80,"box":{"x":68,"y":173,"width":829,"height":11}},{"id":"5862ea1a-0d0a-4632-aca9-b643640857bc","block_type":"box","text":"The SSE Securities and SZSE Securities markets have a higher propensity for trading suspensions than many other","page_number":80,"box":{"x":68,"y":188,"width":823,"height":12}},{"id":"fa592b95-0236-4ad5-9195-f7f455943aba","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":80,"box":{"x":68,"y":203,"width":831,"height":12}},{"id":"0db03927-d571-48ba-b354-b1ff91787235","block_type":"box","text":"SZSE Securities purchased on the Stock Connects if necessary for ensuring an orderly and fair market and ensuring","page_number":80,"box":{"x":69,"y":218,"width":828,"height":12}},{"id":"b451bdae-866a-4f6f-8ee2-b9ccaaabeaf3","block_type":"box","text":"that risks are managed prudently. Consent from the relevant regulator would be sought before a suspension of","page_number":80,"box":{"x":68,"y":234,"width":791,"height":11}},{"id":"f2ecee14-333c-4e99-a891-a1c5512627f3","block_type":"box","text":"Nor thbound trading is triggered. The relevant PRC government authority may also impose “circuit breakers” and other","page_number":80,"box":{"x":70,"y":249,"width":837,"height":11}},{"id":"cd0d3e43-8f83-4266-85b4-6cd1b6388cfd","block_type":"box","text":"measures to halt or suspend Nor thbound trading. Where a suspension in the Nor thbound trading through Stock","page_number":80,"box":{"x":69,"y":264,"width":796,"height":11}},{"id":"0d2f0132-38f4-4c0d-bc92-340d15f34d02","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":80,"box":{"x":69,"y":279,"width":820,"height":11}},{"id":"749a337a-3446-452d-89ee-7c2c52c3a1bc","block_type":"box","text":"cer tain stocks could lead to greater market execution risk and costs for a Fund. The SSE and SZSE currently apply a","page_number":80,"box":{"x":69,"y":294,"width":829,"height":11}},{"id":"c78d033f-efa9-48c2-b8ce-aec41f1f3aad","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":80,"box":{"x":69,"y":309,"width":778,"height":11}},{"id":"c57b7d5e-0160-41cf-b06e-482e6ce12390","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":80,"box":{"x":69,"y":324,"width":815,"height":12}},{"id":"bed6925d-e58d-4a53-8ccc-0c5c7fa1a43f","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":80,"box":{"x":69,"y":340,"width":833,"height":11}},{"id":"8ec5ad19-2244-4208-9203-22e8f2ad6db3","block_type":"box","text":"exist for any par ticular SSE Security or SZSE Security or for any par ticular time.","page_number":80,"box":{"x":69,"y":355,"width":563,"height":11}},{"id":"77f7d6c7-3080-4a6c-97ae-54cd4b02de31","block_type":"box","text":"Risk of Investing in the China Interbank Bond Market through Bond Connect.","page_number":80,"box":{"x":102,"y":377,"width":542,"height":12}},{"id":"e6b206bd-c82d-4a46-8025-0f0cafd9e058","block_type":"box","text":"A Fund may invest directly in the","page_number":80,"box":{"x":650,"y":377,"width":230,"height":11}},{"id":"55a3d390-23bf-4fce-bf04-d269d9245d4e","block_type":"box","text":"domestic bond market in the PRC (the “China Interbank Bond Market”) through the nor thbound trading of Bond","page_number":80,"box":{"x":69,"y":392,"width":791,"height":12}},{"id":"44171aba-441d-4594-a553-b29dec63a06d","block_type":"box","text":"Connect (“Bond Connect”). Bond Connect is an initiative launched in July 2017 for mutual bond market access","page_number":80,"box":{"x":69,"y":407,"width":790,"height":12}},{"id":"b3a31aea-2d60-446d-877f-ff90fc517cd4","block_type":"box","text":"between the PRC and Hong Kong, established by the China Foreign Exchange Trade System & National Interbank","page_number":80,"box":{"x":69,"y":423,"width":803,"height":11}},{"id":"218a00ac-8560-4c84-a241-8706e2026479","block_type":"box","text":"Funding Centre (“CFETS”), China Central Depository & Clearing Co., Ltd (“CDCC”), Shanghai Clearing House (“SCH”),","page_number":80,"box":{"x":70,"y":438,"width":832,"height":11}},{"id":"afe1c81e-5e63-4747-8479-ed37e04e2e7f","block_type":"box","text":"Hong Kong Exchanges and Clearing Limited (“HKEX”) and Central Moneymarkets Unit (“CMU”). Under the prevailing","page_number":80,"box":{"x":70,"y":453,"width":821,"height":11}},{"id":"68a75425-f17f-4f79-bd54-7b4958eb5a95","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":80,"box":{"x":69,"y":468,"width":825,"height":11}},{"id":"5f2656f4-5678-49ab-994f-b0c578291dea","block_type":"box","text":"Bond Market through Bond Connect. Eligible foreign investors may submit trade requests for bonds circulated in the","page_number":80,"box":{"x":70,"y":483,"width":825,"height":11}},{"id":"f079120b-699e-4db3-b4c2-ed9cc60a76e3","block_type":"box","text":"China Interbank Bond Market through offshore electronic bond trading platforms (such as Tradeweb), which will in","page_number":80,"box":{"x":69,"y":498,"width":809,"height":11}},{"id":"5ae5921e-d90f-44ae-8c11-46908f8f6d56","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":80,"box":{"x":68,"y":513,"width":786,"height":11}},{"id":"a5217670-8cc9-42c0-983a-1a12ea225eb2","block_type":"box","text":"approved onshore dealers (including market makers and others engaged in the market making business) in the PRC.","page_number":80,"box":{"x":69,"y":529,"width":830,"height":11}},{"id":"854f368e-52c6-4941-9d8f-1e10b7aeca35","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":80,"box":{"x":68,"y":543,"width":788,"height":12}},{"id":"2892b812-f157-4e02-a578-f3eef4554b43","block_type":"box","text":"responses to those eligible foreign investors through the same offshore electronic bond trading platforms. Once the","page_number":80,"box":{"x":69,"y":559,"width":827,"height":11}},{"id":"00b7980c-49e1-4ba7-9ee3-e5e609e15d2c","block_type":"box","text":"eligible foreign investor accepts the quotation, the trade is concluded on CFETS.","page_number":80,"box":{"x":69,"y":574,"width":570,"height":11}},{"id":"2b8be6ba-1527-477b-8026-316bcdf19ceb","block_type":"box","text":"The settlement and custody of bonds traded in the China Interbank Bond Market under Bond Connect will be","page_number":80,"box":{"x":101,"y":596,"width":773,"height":12}},{"id":"63495292-47c4-4b4a-af0e-3d9d9e821589","block_type":"box","text":"effected through the settlement and custody link between CMU, as an offshore custody agent, and CDCC and SCH,","page_number":80,"box":{"x":69,"y":612,"width":823,"height":11}},{"id":"25a6a2f8-9a35-43f9-a95d-905bc3a77d36","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":80,"box":{"x":69,"y":627,"width":832,"height":11}},{"id":"7d5147fc-4ede-4010-9466-d9b2add8b05d","block_type":"box","text":"settlement of confirmed trades onshore and CMU will process bond settlement instructions from CMU members on","page_number":80,"box":{"x":69,"y":642,"width":822,"height":11}},{"id":"dbd814df-9a33-4b54-97e3-0a69494f9a34","block_type":"box","text":"behalf of eligible foreign investors in accordance with its relevant rules. Since the introduction in August 2018 of","page_number":80,"box":{"x":69,"y":657,"width":804,"height":11}},{"id":"0db1dc61-1342-403b-974e-95978c549036","block_type":"box","text":"delivery versus payment (DVP) settlement in respect of Bond Connect, the movement of cash and securities is","page_number":80,"box":{"x":69,"y":672,"width":787,"height":11}},{"id":"e3948e95-69f0-4923-af06-b434181d3f96","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":80,"box":{"x":69,"y":687,"width":788,"height":11}},{"id":"83216aea-419a-4288-b47f-31f3a453332b","block_type":"box","text":"offshore custody agent recognized by the Hong Kong Monetary Authority, will open omnibus nominee accounts with","page_number":80,"box":{"x":69,"y":702,"width":820,"height":12}},{"id":"2cf4e3fc-7f64-456f-bbbc-6bf12ecc588d","block_type":"box","text":"the onshore custody agent recognized by the People’s Bank of China (","page_number":80,"box":{"x":68,"y":717,"width":500,"height":12}},{"id":"7a2d8fe3-a6f9-4ac4-9b15-d09c3530b6b4","block_type":"box","text":"i.e.","page_number":80,"box":{"x":570,"y":718,"width":20,"height":8}},{"id":"f0cecd94-cef1-4477-9dd8-3a0e38afa735","block_type":"box","text":", CDCC and SCH). All bonds traded by","page_number":80,"box":{"x":593,"y":718,"width":267,"height":11}},{"id":"45c18d07-95da-4bfb-a4fb-1f12904b4ad0","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":80,"box":{"x":69,"y":732,"width":832,"height":12}},{"id":"449951a9-32a7-4b0b-af4e-f02ed0db843c","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":80,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"356d15ea-142f-477d-9840-fc4dfb9ed4fb","block_type":"box","text":"CDCC or SCH default, CMU’s liabilities in Bond Connect bonds under its market contracts with clearing par ticipants","page_number":80,"box":{"x":69,"y":763,"width":822,"height":11}},{"id":"989078df-9189-4334-8f7e-662b08b31fa4","block_type":"box","text":"will be limited to assisting clearing par ticipants in pursuing their claims against CDCC or SCH. The Fund may suffer","page_number":80,"box":{"x":68,"y":778,"width":822,"height":11}},{"id":"66a8cd38-3abe-425b-b73a-fe98555a8b1b","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":80,"box":{"x":69,"y":793,"width":793,"height":11}},{"id":"77b9bd81-7fd7-413f-b7f3-bc81ff42ead1","block_type":"box","text":"filings, registration with the People’s Bank of China, and account opening have to be carried out by third par ties,","page_number":80,"box":{"x":68,"y":808,"width":802,"height":11}},{"id":"9faff8bc-9231-436a-963e-8dda26452ccc","block_type":"box","text":"including CMU, CDCC, SCH, and CFETS, a Fund is subject to the risks of default or errors on the par t of such third","page_number":80,"box":{"x":70,"y":823,"width":812,"height":12}},{"id":"e8ba1d41-911c-4674-b5a8-c1ffe23b3429","block_type":"box","text":"par ties.","page_number":80,"box":{"x":70,"y":839,"width":52,"height":10}},{"id":"de84f12b-72c7-4287-9f69-cf5a836d1a8a","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":80,"box":{"x":101,"y":861,"width":799,"height":11}},{"id":"68e44b0f-1dd6-4732-bfae-7febb34afee4","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":80,"box":{"x":70,"y":876,"width":785,"height":11}},{"id":"a9abb8e9-bfae-4ce9-b774-e65da50ce18b","block_type":"box","text":"distinction between, legal ownership and beneficial ownership under PRC law and there have been few cases","page_number":80,"box":{"x":69,"y":891,"width":776,"height":12}},{"id":"cf11997b-497d-4d7e-8841-ce2fdbbd3385","block_type":"box","text":"II-45","page_number":80,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"78a3d5a1-dcb8-47f0-8e2e-b7058dbeeca7","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":80,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"629c26b7-a405-4910-a009-2bfc271abcfa","block_type":"box","text":"involving a nominee account structure in the PRC cour ts. The exact nature and methods of enforcement of the rights","page_number":81,"box":{"x":70,"y":45,"width":830,"height":11}},{"id":"349821b6-4bf7-40c8-a84e-04a907a8181e","block_type":"box","text":"and interests of a Fund under PRC law are also uncer tain.","page_number":81,"box":{"x":69,"y":60,"width":412,"height":9}},{"id":"a4ccd20d-12d2-4d60-a2c0-2646210d4f24","block_type":"box","text":"Market volatility and potential lack of liquidity due to low trading volume of cer tain bonds in the China Interbank","page_number":81,"box":{"x":102,"y":82,"width":793,"height":12}},{"id":"e35d3788-a5e6-4fe8-b344-83efc663ff7d","block_type":"box","text":"Bond Market may result in prices of cer tain bonds traded on such market fluctuating significantly. A Fund investing in","page_number":81,"box":{"x":70,"y":98,"width":832,"height":11}},{"id":"376d64b2-731a-4291-b1e1-53727efee373","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":81,"box":{"x":69,"y":113,"width":821,"height":11}},{"id":"ca51232a-ba4e-4896-8f35-1d2b04f54e8a","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":81,"box":{"x":69,"y":128,"width":836,"height":11}},{"id":"c0c3d9b8-f4a7-4cfa-96e6-5fea352d63a2","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":81,"box":{"x":68,"y":143,"width":798,"height":11}},{"id":"c948535a-c90f-4695-8e72-f513a04e2f62","block_type":"box","text":"Fund’s ability to acquire or dispose of such securities at their expected prices.","page_number":81,"box":{"x":70,"y":158,"width":556,"height":11}},{"id":"4302d74f-a373-4d23-98ff-7eea490072c9","block_type":"box","text":"Investing in the China Interbank Bond Market through Bond Connect is also subject to regulatory risks. The","page_number":81,"box":{"x":102,"y":181,"width":762,"height":11}},{"id":"5660fcc3-41de-40f3-a929-22647b9c87c7","block_type":"box","text":"relevant rules and regulations are subject to change, which may have potential retrospective effect, and there can be","page_number":81,"box":{"x":69,"y":196,"width":835,"height":11}},{"id":"fa72dbe9-10e5-43ed-998f-637650a18aea","block_type":"box","text":"no assurance that Bond Connect will not be discontinued or abolished. Fur thermore, the securities regimes and legal","page_number":81,"box":{"x":69,"y":211,"width":835,"height":11}},{"id":"585a4e9a-94ec-4942-828c-8b2febca6b8f","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":81,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"cb4b34b1-313a-41f4-8129-b940e14e0398","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":81,"box":{"x":68,"y":241,"width":840,"height":11}},{"id":"4ec6015d-c454-4167-bd84-b996b778ac17","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":81,"box":{"x":68,"y":256,"width":826,"height":11}},{"id":"c0f97ba3-0170-4363-8698-26d50fffc6c9","block_type":"box","text":"to achieve its investment objective will be negatively affected and, after exhausting other trading alternatives, the","page_number":81,"box":{"x":68,"y":271,"width":808,"height":12}},{"id":"5e6c2db9-b1e0-4f31-8b10-082af38d901e","block_type":"box","text":"Fund may suffer substantial losses as a result. Fur ther, if Bond Connect is not operating, a Fund may not be able to","page_number":81,"box":{"x":70,"y":286,"width":826,"height":12}},{"id":"29c18b24-7749-4ad9-becc-f8dcbf4fdf41","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":81,"box":{"x":69,"y":302,"width":789,"height":11}},{"id":"a719f963-575a-401b-a28e-1b726c508eec","block_type":"box","text":"per formance.","page_number":81,"box":{"x":70,"y":317,"width":93,"height":11}},{"id":"a240a3f0-cc25-4bfb-a960-513a47370e14","block_type":"box","text":"Trading through Bond Connect is per formed through newly developed trading platforms and operational systems.","page_number":81,"box":{"x":101,"y":339,"width":803,"height":12}},{"id":"66a3e276-28f3-4aa5-8e9d-725604295df2","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":81,"box":{"x":68,"y":355,"width":776,"height":11}},{"id":"d2a203e3-f8cd-479f-af39-cadf00e71ba2","block_type":"box","text":"developments in the market. In the event that the relevant systems fail to function properly, trading through Bond","page_number":81,"box":{"x":69,"y":370,"width":806,"height":11}},{"id":"326f4481-d3d5-4313-a5be-9d23457b5020","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":81,"box":{"x":69,"y":385,"width":791,"height":11}},{"id":"d2fb3bc2-0ee2-4c80-93e1-bfb597dadf9f","block_type":"box","text":"strategy) may therefore be adversely affected. In addition, where a Fund invests in the China Interbank Bond Market","page_number":81,"box":{"x":69,"y":400,"width":827,"height":11}},{"id":"f3df9389-0c77-4329-bb25-a2212952a54a","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":81,"box":{"x":68,"y":415,"width":827,"height":11}},{"id":"508b079e-3f67-44e3-bcf1-cb0cc63277a5","block_type":"box","text":"Bond Connect trades are settled in Chinese currency, the RMB, which is currently restricted and not freely","page_number":81,"box":{"x":102,"y":438,"width":755,"height":11}},{"id":"afccd73e-30b6-4b37-8f46-b269ea7dd517","block_type":"box","text":"conver tible. As a result, a Fund will be exposed to currency risk, and it cannot be guaranteed that investors will have","page_number":81,"box":{"x":69,"y":453,"width":830,"height":11}},{"id":"53198667-833f-4191-b222-ed5526f7d772","block_type":"box","text":"timely access to a reliable supply of RMB.","page_number":81,"box":{"x":68,"y":468,"width":298,"height":11}},{"id":"2147884e-1a25-4727-8a29-29db8591ab1f","block_type":"box","text":"Tax Risk – Withholding Income Tax Risk","page_number":81,"box":{"x":103,"y":491,"width":277,"height":11}},{"id":"e3301cb5-ca86-4282-bf6e-b06adeb6fd20","block_type":"box","text":".","page_number":81,"box":{"x":381,"y":498,"width":2,"height":2}},{"id":"8a321e22-1f6d-44ca-95fe-3dbc337f9dbd","block_type":"box","text":"According to PRC tax regulations, a 10% withholding income tax is imposed on PRC sourced dividends and","page_number":81,"box":{"x":101,"y":513,"width":758,"height":12}},{"id":"f310f98a-6864-4767-8773-d27f42490cea","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":81,"box":{"x":70,"y":528,"width":828,"height":12}},{"id":"726f1666-a03f-457b-a3fe-db4914f1b31d","block_type":"box","text":"applicable tax treaty. From a technical perspective, withholding income tax is also applicable to capital gains realized","page_number":81,"box":{"x":69,"y":544,"width":831,"height":11}},{"id":"e135f6eb-89b0-48e1-8f98-efeea4c6e5d7","block_type":"box","text":"by foreign investors on the disposal of PRC equity interests.","page_number":81,"box":{"x":69,"y":559,"width":425,"height":11}},{"id":"7aab25d0-f696-4efa-a452-674013a5b9c0","block_type":"box","text":"There are however cer tain tax exemptions available, some temporary in nature, highlighted below.","page_number":81,"box":{"x":101,"y":582,"width":697,"height":11}},{"id":"a42562e3-37b0-42a3-a02a-66a3e0eb5a16","block_type":"box","text":"On November 14, 2014, the Ministry of Finance (“MoF”), China Securities Regulatory Commission and the State","page_number":81,"box":{"x":102,"y":604,"width":803,"height":11}},{"id":"44bbc0da-540b-4559-810b-7aa36f369112","block_type":"box","text":"Taxation Administration (“STA”), acting with State Council’s approval, jointly released Circular 79, which temporarily","page_number":81,"box":{"x":68,"y":619,"width":822,"height":11}},{"id":"c26bc51b-cdaa-4d2d-88b7-9da0b308925c","block_type":"box","text":"exempts Qualified Foreign Institutional Investors (“QFIIs”) and Renminbi Qualified Foreign Institutional Investors","page_number":81,"box":{"x":69,"y":634,"width":794,"height":12}},{"id":"3df30ff1-3cf2-45cc-838b-3fe44bf2f243","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":81,"box":{"x":69,"y":649,"width":812,"height":12}},{"id":"61a1deab-e807-42c9-8d86-d73010707aa6","block_type":"box","text":"after November 17, 2014. Subsequently, Circulars 81 and 127 were issued to temporarily exempt tax on capital","page_number":81,"box":{"x":69,"y":664,"width":800,"height":12}},{"id":"03c07df3-98bb-4b6e-a2ac-acb5159dcffa","block_type":"box","text":"gains derived from trading of equity securities of companies domiciled in the PRC that trade on Chinese stock","page_number":81,"box":{"x":68,"y":680,"width":783,"height":11}},{"id":"5d72dd29-5480-4ff7-af1b-5b469daecf21","block_type":"box","text":"exchanges (“A-Shares”) through the Shanghai-Hong Kong Stock Connect program or the Shenzhen-Hong Kong Stock","page_number":81,"box":{"x":69,"y":695,"width":825,"height":11}},{"id":"9214ce32-3e70-4967-8b8a-403e9051a5fb","block_type":"box","text":"Connect program, as applicable (each, a “Stock Connect” and collectively, “Stock Connects”). The duration of the","page_number":81,"box":{"x":69,"y":710,"width":809,"height":11}},{"id":"9e4893ff-14fc-448d-bd0c-7f2e434ebe37","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":81,"box":{"x":68,"y":725,"width":818,"height":11}},{"id":"98349f8e-cdf8-47dd-99a9-5e6dcffca46f","block_type":"box","text":"without notice.","page_number":81,"box":{"x":68,"y":740,"width":103,"height":9}},{"id":"2a51d721-23f3-4198-83b8-81a79c788c04","block_type":"box","text":"On November 22, 2018, the MoF and STA jointly issued Circular 108 which states that foreign institutional","page_number":81,"box":{"x":102,"y":763,"width":759,"height":11}},{"id":"ff96c3b3-ca60-40b4-b15e-88de86bbdd55","block_type":"box","text":"investors are temporarily exempt from withholding income tax with respect to interest income on bonds derived from","page_number":81,"box":{"x":70,"y":778,"width":827,"height":11}},{"id":"dd59a2e3-768e-4f50-97c1-a0f0c3165e07","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":81,"box":{"x":68,"y":793,"width":798,"height":10}},{"id":"70c2dcfd-0798-4623-926f-d420fe36df74","block_type":"box","text":"issued Public Notice 34 to extend the temporary exemption from November 7, 2021 to December 31, 2025. On","page_number":81,"box":{"x":70,"y":808,"width":798,"height":11}},{"id":"a715d23e-8f64-425a-ac95-384b526f2b6f","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":81,"box":{"x":69,"y":823,"width":792,"height":12}},{"id":"eaccd050-d57a-470b-ab69-3a8eca41a89e","block_type":"box","text":"December 31, 2027.","page_number":81,"box":{"x":70,"y":838,"width":147,"height":11}},{"id":"7215674f-7787-403f-87d0-b7c2fd8f85a4","block_type":"box","text":"Value Added Tax (“VAT”) Risk —","page_number":81,"box":{"x":103,"y":861,"width":225,"height":11}},{"id":"0d857720-73d4-4549-a3fb-1a22296b8164","block_type":"box","text":"From May 1, 2016, VAT applies to cer tain income derived by the Fund, including","page_number":81,"box":{"x":333,"y":861,"width":569,"height":11}},{"id":"24eb5633-d77d-46b1-8a96-8b6eb6161a25","block_type":"box","text":"PRC sourced interest income on non-government bonds and trading gains.","page_number":81,"box":{"x":69,"y":876,"width":528,"height":11}},{"id":"1e338f2c-0bfe-441c-af12-000c0b30403f","block_type":"box","text":"There are however cer tain tax exemptions available, some temporary in nature, highlighted below.","page_number":81,"box":{"x":101,"y":899,"width":697,"height":11}},{"id":"26a146c1-32b8-4ef5-ac7e-108a26d703c6","block_type":"box","text":"II-46","page_number":81,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e4dc8f27-cad0-4f1f-ba71-decffbe9d9d8","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":81,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b765384d-ade3-4b87-9869-26cdfb309af2","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":82,"box":{"x":101,"y":45,"width":789,"height":11}},{"id":"c4ebd4da-f402-4e1a-bcad-2674badbef68","block_type":"box","text":"Stock Connects and debt securities traded in the China Interbank Bond Market.","page_number":82,"box":{"x":69,"y":60,"width":565,"height":9}},{"id":"19f87899-113a-4b2d-9a47-e042a45ab25e","block_type":"box","text":"On November 7, 2018, the MoF and STA jointly issued Circular 108 which states that foreign institutional","page_number":82,"box":{"x":102,"y":82,"width":749,"height":12}},{"id":"1a65d32f-51e4-4a8d-b980-de722dae6459","block_type":"box","text":"investors are temporarily exempt from VAT with respect to interest income on bonds derived from the PRC bond","page_number":82,"box":{"x":70,"y":98,"width":791,"height":11}},{"id":"451b56a1-e66c-4e9c-bd76-2b9f5b934b06","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":82,"box":{"x":69,"y":113,"width":840,"height":11}},{"id":"a36466ea-e2cd-4581-93b8-422f2aed4d0f","block_type":"box","text":"Notice 34 to extend the temporary exemption from November 7, 2021 to December 31, 2025. However, on","page_number":82,"box":{"x":70,"y":128,"width":766,"height":11}},{"id":"6ecdf1ef-fcdf-44da-b502-b362db0c2e72","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":82,"box":{"x":69,"y":143,"width":826,"height":11}},{"id":"523ae6c8-6ef9-4c06-aa23-1ca45b87644c","block_type":"box","text":"interest income derived from treasury bonds, local government bonds and financial bonds issued on or after","page_number":82,"box":{"x":70,"y":158,"width":772,"height":11}},{"id":"fef44841-76cb-4a62-bfee-a753ab0ff377","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":82,"box":{"x":68,"y":173,"width":840,"height":11}},{"id":"a8fba5d0-ba65-4c2d-95bb-3a040e6fe02b","block_type":"box","text":"for foreign institutional investors. This exemption was extended through December 31, 2027.","page_number":82,"box":{"x":68,"y":188,"width":665,"height":12}},{"id":"b06f5bd9-00a9-4b78-b62b-fe05f8527196","block_type":"box","text":"Any changes in PRC tax law, future clarifications thereof, and/or subsequent retroactive enforcement by the PRC","page_number":82,"box":{"x":101,"y":211,"width":801,"height":11}},{"id":"304811af-cb7a-47c0-9f15-5b4223cbf198","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":82,"box":{"x":68,"y":226,"width":821,"height":11}},{"id":"9db6dc53-e0dd-40e3-a16a-bcb1f68e177f","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":82,"box":{"x":68,"y":241,"width":808,"height":11}},{"id":"6a1f048c-e912-460b-a74e-189db46e7c11","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":82,"box":{"x":69,"y":256,"width":810,"height":12}},{"id":"1df23275-5748-4557-bf70-772e466e528b","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":82,"box":{"x":68,"y":272,"width":829,"height":11}},{"id":"50aa27fb-1569-49cb-8957-276980ad05e8","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":82,"box":{"x":69,"y":287,"width":819,"height":11}},{"id":"0ab6e668-87c7-49a0-8920-a387ad88bc9f","block_type":"box","text":"advantaged or disadvantaged depending on when the investors purchased and/or sold the shares of the Fund. There","page_number":82,"box":{"x":69,"y":302,"width":833,"height":11}},{"id":"bdb88c8f-50e7-4b43-903d-6f396bd7d74e","block_type":"box","text":"will be no retrospective restatement of the Fund’s net asset value.","page_number":82,"box":{"x":68,"y":317,"width":474,"height":11}},{"id":"c1a9176f-d7c8-4ddf-a254-5fcda53d61d5","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":82,"box":{"x":102,"y":339,"width":777,"height":12}},{"id":"7c0d5ff7-b170-444b-868c-5225841c6f1d","block_type":"box","text":"time, make a provision for potential tax liabilities if in its opinion such provision is warranted or as fur ther clarified by","page_number":82,"box":{"x":68,"y":355,"width":836,"height":11}},{"id":"8d6db2af-932d-4c39-bd9f-d7388bb9c230","block_type":"box","text":"the PRC in notifications.","page_number":82,"box":{"x":68,"y":370,"width":171,"height":9}},{"id":"65cc01e7-3133-4faf-a02d-1e7d4a2c6f2e","block_type":"box","text":"Investment in Other Investment Companies.","page_number":82,"box":{"x":102,"y":392,"width":320,"height":11}},{"id":"59ff7a4a-9dc0-4221-9955-b8bf4dc825e4","block_type":"box","text":"Each Fund may, subject to applicable law, invest in other","page_number":82,"box":{"x":429,"y":393,"width":402,"height":11}},{"id":"c532873d-3b45-4078-90cc-19408b1ce7d2","block_type":"box","text":"investment companies (including investment companies managed by BlackRock and its affiliates), including money","page_number":82,"box":{"x":70,"y":407,"width":818,"height":12}},{"id":"fe566a22-9cf1-4154-8675-49119384bd3e","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":82,"box":{"x":69,"y":423,"width":797,"height":11}},{"id":"c2201f4e-a498-4f8a-855f-5d8fa1d967db","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":82,"box":{"x":70,"y":438,"width":822,"height":11}},{"id":"eaf904d4-21b6-4b65-bdb0-ffd52100d48b","block_type":"box","text":"in securities of other investment companies (measured at the time of such investment). In addition, under Section","page_number":82,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"6b80bf1c-28ed-4625-8550-2e0d4de5d651","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":82,"box":{"x":70,"y":468,"width":793,"height":11}},{"id":"1a45e067-3734-4aec-a9fb-7bd97031ffcc","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":82,"box":{"x":69,"y":483,"width":796,"height":11}},{"id":"6dd76cf8-3ae9-49e0-968b-491f350ac5f5","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":82,"box":{"x":69,"y":498,"width":837,"height":11}},{"id":"95c32ced-29bd-4076-9f5f-c709f41fb262","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":82,"box":{"x":68,"y":513,"width":812,"height":11}},{"id":"3c613371-f9ff-4806-8f64-aa16413302dd","block_type":"box","text":"restrict a Feeder Fund from investing all of its assets in shares of its Master Por tfolio.) In addition to the restrictions","page_number":82,"box":{"x":69,"y":528,"width":829,"height":12}},{"id":"959f02a1-b610-420e-abbc-40b3a10b87a4","block_type":"box","text":"on investing in other investment companies discussed above, under Section 12(d)(1)(C) of the Investment Company","page_number":82,"box":{"x":69,"y":543,"width":827,"height":12}},{"id":"70c2131a-5970-42ea-b538-c5e4f34c428d","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":82,"box":{"x":68,"y":559,"width":821,"height":11}},{"id":"282d1352-b360-4a25-9ef1-b596086edbd2","block_type":"box","text":"and other BlackRock-advised investment companies to own more than 10% of the total outstanding voting stock of","page_number":82,"box":{"x":69,"y":574,"width":817,"height":11}},{"id":"f6284cf2-b29f-42c7-8370-00e0060769da","block_type":"box","text":"such closed-end investment company. Pursuant to Section 12(d)(1)(G) of the Investment Company Act, these","page_number":82,"box":{"x":69,"y":589,"width":776,"height":11}},{"id":"b6c977c8-c2c5-4c37-852b-e4e48602be89","block_type":"box","text":"percentage limitations do not apply to investments in affiliated investment companies, including ETFs, subject to","page_number":82,"box":{"x":70,"y":604,"width":802,"height":11}},{"id":"d851a4cf-7783-4d99-84ae-478a9efe8c96","block_type":"box","text":"cer tain conditions. In addition, a Fund may be able to rely on cer tain rules under the Investment Company Act to","page_number":82,"box":{"x":69,"y":619,"width":801,"height":11}},{"id":"845092bf-ab07-4ebc-a190-b56b1cb3cd16","block_type":"box","text":"invest in shares of money market funds or other investment companies beyond the statutory limits noted above, but","page_number":82,"box":{"x":70,"y":634,"width":829,"height":11}},{"id":"f4d102c4-5459-4984-bcc2-912bcb520a1c","block_type":"box","text":"subject to cer tain conditions.","page_number":82,"box":{"x":69,"y":650,"width":206,"height":10}},{"id":"d5537812-086b-4e0f-8b74-8ac1636f1730","block_type":"box","text":"As with other investments, investments in other investment companies are subject to market and selection risk.","page_number":82,"box":{"x":101,"y":672,"width":799,"height":11}},{"id":"447b8ca6-43c4-4fbb-8356-0c5e60e20de1","block_type":"box","text":"Shares of investment companies, such as closed-end fund investment companies, that trade on an exchange","page_number":82,"box":{"x":102,"y":695,"width":779,"height":11}},{"id":"4ff5a2fa-e08f-4672-afcc-162001495f0b","block_type":"box","text":"may at times be acquired at market prices representing premiums to their NAVs. In addition, investment companies","page_number":82,"box":{"x":69,"y":710,"width":824,"height":11}},{"id":"7cfd29e6-a969-412e-a9bf-328157a8bb45","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":82,"box":{"x":69,"y":725,"width":836,"height":11}},{"id":"5c62b2d5-089c-488b-840f-76568bbe4a5b","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":82,"box":{"x":68,"y":740,"width":839,"height":11}},{"id":"58fa3922-0491-48cf-b016-b4b04738fc68","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":82,"box":{"x":68,"y":755,"width":806,"height":11}},{"id":"a2b760ce-3875-41ee-aaf9-8f4e9c998acb","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":82,"box":{"x":68,"y":771,"width":810,"height":10}},{"id":"370e85e6-f6a8-4ed2-95db-b509b6ccfb85","block_type":"box","text":"loss.","page_number":82,"box":{"x":70,"y":786,"width":31,"height":8}},{"id":"baf69e60-21cd-4982-bdb0-cbacb5c55d23","block_type":"box","text":"In addition, if a Fund acquires shares in investment companies, including affiliated investment companies,","page_number":82,"box":{"x":102,"y":808,"width":758,"height":11}},{"id":"3b06562e-a049-4790-bc63-93511004761f","block_type":"box","text":"shareholders would bear both their propor tionate share of expenses in the Fund and, indirectly, the expenses of such","page_number":82,"box":{"x":69,"y":823,"width":837,"height":11}},{"id":"a0f21233-96c9-4fce-bbd7-7ae8b3f0f204","block_type":"box","text":"investment companies. Such expenses, both at the Fund level and acquired investment company level, would include","page_number":82,"box":{"x":70,"y":838,"width":835,"height":11}},{"id":"9b17882e-2f03-48a5-a87d-36546cf1783b","block_type":"box","text":"management and advisory fees, unless such fees have been waived by BlackRock. Please see the relevant Fund’s","page_number":82,"box":{"x":69,"y":853,"width":816,"height":12}},{"id":"bca21b3e-22df-4fc8-8488-56176ceaa89d","block_type":"box","text":"Prospectus to determine whether any such management and advisory fees have been waived by BlackRock.","page_number":82,"box":{"x":69,"y":869,"width":768,"height":11}},{"id":"48764d57-ce55-438e-8d07-35b2759a6219","block_type":"box","text":"Investments by a Fund in wholly owned investment entities created under the laws of cer tain countries will not be","page_number":82,"box":{"x":70,"y":884,"width":807,"height":11}},{"id":"79be6d43-9178-4d58-bef6-ce1db5d97870","block_type":"box","text":"deemed an investment in other investment companies. Pursuant to guidance issued by the staff of the Commission,","page_number":82,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"4bef5859-c71c-467b-bdb2-fece61397552","block_type":"box","text":"II-47","page_number":82,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"27ed4e51-d493-4653-a071-16aa8389a528","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":82,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"057e0bd4-a48c-487f-bacf-5164a5db1b9c","block_type":"box","text":"fees and expenses of money market funds used for the investment of cash collateral received in connection with","page_number":83,"box":{"x":68,"y":45,"width":804,"height":11}},{"id":"70c3eb64-1c2d-4c1e-a750-730fefc6c991","block_type":"box","text":"loans of Fund securities are not treated as “acquired fund fees and expenses,” which are fees and expenses","page_number":83,"box":{"x":70,"y":60,"width":778,"height":11}},{"id":"39914010-036c-486a-a24f-27c40469fa92","block_type":"box","text":"charged by other investment companies and pooled investment vehicles in which a Fund invests a por tion of its","page_number":83,"box":{"x":69,"y":75,"width":796,"height":11}},{"id":"4eb29a3e-a09c-4a1e-91be-74fa3170c054","block_type":"box","text":"assets.","page_number":83,"box":{"x":69,"y":91,"width":51,"height":8}},{"id":"c1ab5ab9-3e28-42e2-b2c1-ad643d67b4c3","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":83,"box":{"x":101,"y":113,"width":776,"height":11}},{"id":"d7a05bf3-5afb-43c9-a613-176725f1658c","block_type":"box","text":"may be limited. In addition, a fund-of-funds (","page_number":83,"box":{"x":69,"y":128,"width":313,"height":11}},{"id":"b460ba27-baf8-4400-b7f7-bd511111ada9","block_type":"box","text":"e.g.","page_number":83,"box":{"x":384,"y":129,"width":24,"height":10}},{"id":"76db2edb-ef3c-4633-a623-f3abce56ff73","block_type":"box","text":", an investment company that seeks to meet its investment objective","page_number":83,"box":{"x":411,"y":128,"width":491,"height":11}},{"id":"4826012a-fa7e-456f-ab79-91a954a4502a","block_type":"box","text":"by investing significantly in other investment companies) may be limited in its ability to purchase underlying funds if","page_number":83,"box":{"x":69,"y":143,"width":823,"height":11}},{"id":"5e5a5269-e6de-4e8a-99b9-e10498d56df4","block_type":"box","text":"such underlying funds themselves own shares of underlying funds.","page_number":83,"box":{"x":69,"y":158,"width":472,"height":11}},{"id":"06933835-3c3a-4603-b19e-cbe6bd35e874","block_type":"box","text":"A number of publicly traded closed-end investment companies have been organized to facilitate indirect foreign","page_number":83,"box":{"x":101,"y":181,"width":790,"height":11}},{"id":"20420e05-8b1c-4c34-a262-7bee07a3160b","block_type":"box","text":"investment in developing countries, and cer tain of such countries, such as Thailand, South Korea, Chile and Brazil,","page_number":83,"box":{"x":70,"y":196,"width":818,"height":11}},{"id":"681281bc-0839-4235-87a2-a1288d7d80e5","block_type":"box","text":"have specifically authorized such funds. There also are investment oppor tunities in cer tain of such countries in","page_number":83,"box":{"x":69,"y":211,"width":791,"height":11}},{"id":"e2f93691-7ef2-4f1b-832e-37884a370619","block_type":"box","text":"pooled vehicles that resemble open-end investment companies. The restrictions on investments in securities of","page_number":83,"box":{"x":70,"y":226,"width":795,"height":11}},{"id":"4d5cba81-1d50-406e-b260-df1a013afed0","block_type":"box","text":"investment companies set for th above may limit oppor tunities for a Fund to invest indirectly in cer tain developing","page_number":83,"box":{"x":70,"y":241,"width":807,"height":11}},{"id":"dd6c5752-b27d-4381-a572-02076c4d3750","block_type":"box","text":"countries.","page_number":83,"box":{"x":69,"y":257,"width":69,"height":8}},{"id":"4c695353-0290-4eff-81df-e180fc08fc29","block_type":"box","text":"Issuer Insolvency Risk.","page_number":83,"box":{"x":102,"y":279,"width":166,"height":11}},{"id":"af4afc74-7764-4ddf-8e4d-e9eee4009ad4","block_type":"box","text":"Cer tain Funds’ potential exposure to financially or operationally troubled issuers involves","page_number":83,"box":{"x":275,"y":279,"width":631,"height":11}},{"id":"f5fe7181-e7ff-401f-a0c9-2a9e732d72b2","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":83,"box":{"x":69,"y":294,"width":832,"height":11}},{"id":"5d965c15-9357-42d3-91d1-7f0175e7bfdd","block_type":"box","text":"an issuer of securities held by a Fund become involved in a bankruptcy proceeding, reorganization or financial","page_number":83,"box":{"x":69,"y":309,"width":781,"height":11}},{"id":"e84a6ce9-9123-4e08-85b7-2c616673f79b","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":83,"box":{"x":69,"y":324,"width":797,"height":12}},{"id":"5925e455-52f2-4616-850f-8e03840131e8","block_type":"box","text":"issuer uncer tain.","page_number":83,"box":{"x":70,"y":340,"width":118,"height":8}},{"id":"a87aaa4c-2696-4d36-bf76-b2b445aeb1d0","block_type":"box","text":"During the period of a bankruptcy proceeding, reorganization or financial restructuring, it is unlikely that a Fund","page_number":83,"box":{"x":102,"y":362,"width":788,"height":11}},{"id":"74302efc-b25c-4e7d-8e2d-7aba2a12e8e7","block_type":"box","text":"will receive any interest payments on the securities of the issuer. A Fund will be subject to significant uncer tainty as","page_number":83,"box":{"x":68,"y":377,"width":827,"height":12}},{"id":"57f56a81-bb1b-483d-abfe-f922f45c0ff0","block_type":"box","text":"to whether the reorganization or restructuring will be completed, and the Fund may bear cer tain extraordinary","page_number":83,"box":{"x":68,"y":393,"width":779,"height":11}},{"id":"0a4e53aa-63a6-4706-8ce7-94f4842a8f8c","block_type":"box","text":"expenses to protect and recover its investment. A Fund will also be subject to significant uncer tainty as to when and","page_number":83,"box":{"x":69,"y":407,"width":829,"height":12}},{"id":"1422a24a-ce21-43e3-864c-ed3b973d4265","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":83,"box":{"x":70,"y":423,"width":797,"height":11}},{"id":"0f4b5562-c07a-4af8-a7e7-5977024ee1ca","block_type":"box","text":"eventually be satisfied.","page_number":83,"box":{"x":69,"y":438,"width":162,"height":11}},{"id":"967f47f0-cac7-49be-b95a-3780d9bc95ab","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":83,"box":{"x":102,"y":460,"width":805,"height":12}},{"id":"e331c9df-239f-4544-96a7-5a0404a029db","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":83,"box":{"x":70,"y":476,"width":827,"height":11}},{"id":"cf5cc193-e051-4fe8-9821-dad746c8cb7f","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":83,"box":{"x":69,"y":491,"width":819,"height":11}},{"id":"7e737c8b-b8e3-432c-86ee-44f16eefa2ce","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":83,"box":{"x":69,"y":506,"width":802,"height":11}},{"id":"b0f02674-dc83-4b37-853d-533f5760bba0","block_type":"box","text":"interest in any collateral challenged, disallowed or subordinated to the claims or security interests of other creditors.","page_number":83,"box":{"x":70,"y":521,"width":830,"height":11}},{"id":"890c70da-2e5d-45a5-a986-2feaf9a28c26","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":83,"box":{"x":70,"y":536,"width":805,"height":11}},{"id":"44c37fe9-6f99-4788-93d4-71940df6a0e2","block_type":"box","text":"introduce greater uncer tainty regarding the outcome of the Fund’s securities holdings in the issuer. In a bankruptcy","page_number":83,"box":{"x":70,"y":551,"width":820,"height":11}},{"id":"9e3533c6-53fe-4783-af37-2442a1bdc74d","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":83,"box":{"x":70,"y":566,"width":828,"height":11}},{"id":"40d5ac82-5388-48c7-b60f-eec9dfe98e96","block_type":"box","text":"a Fund may receive different securities or other assets, including equity securities. These types of equity securities","page_number":83,"box":{"x":69,"y":581,"width":820,"height":12}},{"id":"915709a3-25da-4e5b-8d4a-d18fab29fef0","block_type":"box","text":"include, but are not limited to: common stock; preferred stock (including conver tible preferred stock); bonds, notes","page_number":83,"box":{"x":70,"y":596,"width":820,"height":12}},{"id":"22190a1d-d4f7-4ef0-aa54-063b17db9e95","block_type":"box","text":"and debentures conver tible into common or preferred stock; stock purchase warrants and rights; equity interests in","page_number":83,"box":{"x":69,"y":612,"width":824,"height":11}},{"id":"fd4bc7d1-db1e-4211-86f6-f72f8d361bdf","block_type":"box","text":"trusts; and depositary receipts. Equity securities are subject to changes in value, and their value may be more","page_number":83,"box":{"x":68,"y":627,"width":788,"height":11}},{"id":"97ae9e5f-8f57-4320-bc83-8a5f96deda47","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":83,"box":{"x":68,"y":642,"width":826,"height":11}},{"id":"d14e5c07-dc22-438d-9a06-84c38c7ba78b","block_type":"box","text":"securities because the status of equity holders is subordinate to debtholders in an issuer’s capital structure. The","page_number":83,"box":{"x":69,"y":657,"width":809,"height":11}},{"id":"2e28b065-acfc-401f-831b-dd847747262b","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":83,"box":{"x":68,"y":672,"width":809,"height":11}},{"id":"77c3585f-cef9-45ba-88e9-3e2e5698f272","block_type":"box","text":"overall market and economic conditions, or conditions within the issuer’s region or industry, deteriorate.","page_number":83,"box":{"x":69,"y":687,"width":741,"height":11}},{"id":"fbc69c6d-31b2-41be-acf5-cb9888e57baf","block_type":"box","text":"To the extent that a Fund receives other assets in connection with a bankruptcy proceeding, reorganization or","page_number":83,"box":{"x":101,"y":710,"width":780,"height":11}},{"id":"f3b170ac-4e8d-4463-b3cb-7d2507704988","block_type":"box","text":"financial restructuring, the Fund may also be subject to additional risks associated with the assets received. One","page_number":83,"box":{"x":68,"y":725,"width":807,"height":11}},{"id":"fb6baf13-f311-48cc-ac6f-265b366a9146","block_type":"box","text":"example of assets that a Fund could receive is an interest in one or more loans made to the issuer as par t of a","page_number":83,"box":{"x":69,"y":740,"width":795,"height":11}},{"id":"b267548f-743b-4aa3-a87a-12c7c370b43b","block_type":"box","text":"workout agreed to by a consor tium of lienholders and creditors of the issuer. A Fund may receive such interests in","page_number":83,"box":{"x":68,"y":755,"width":814,"height":11}},{"id":"b23e5caf-3a52-440e-935b-7fe495d57ade","block_type":"box","text":"loans to the extent permitted by the Investment Company Act.","page_number":83,"box":{"x":70,"y":770,"width":439,"height":11}},{"id":"393abd89-f2e8-4709-9a83-6c5e0ef73eda","block_type":"box","text":"Securities or other assets received in a reorganization or restructuring typically entail a higher degree of risk than","page_number":83,"box":{"x":102,"y":793,"width":806,"height":11}},{"id":"4dc5f3f8-214f-4ef0-b79e-e374735aea6a","block_type":"box","text":"investments in securities of issuers that have not undergone a reorganization or restructuring and may be subject to","page_number":83,"box":{"x":70,"y":808,"width":829,"height":11}},{"id":"c2f16ffc-4891-40e2-bb4c-704822248665","block_type":"box","text":"heavy selling or downward pricing pressure after completion of the reorganization or restructuring. The post","page_number":83,"box":{"x":69,"y":823,"width":767,"height":12}},{"id":"97308ea6-8cec-4b21-a693-d767f5f4246c","block_type":"box","text":"reorganization/restructuring assets and securities may also be illiquid and difficult to sell or value. If a Fund","page_number":83,"box":{"x":69,"y":838,"width":771,"height":12}},{"id":"c9ddeb38-6c68-412b-8d6e-ce9aec586e04","block_type":"box","text":"par ticipates in negotiations with respect to a plan of reorganization or restructuring with respect to securities of the","page_number":83,"box":{"x":70,"y":853,"width":823,"height":12}},{"id":"f6dd3555-4a75-44e9-a016-05115b19659e","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":83,"box":{"x":70,"y":869,"width":822,"height":11}},{"id":"a10be52e-38b5-44f9-aead-0fccfe407136","block_type":"box","text":"becomes involved in such proceedings, the Fund may have more active par ticipation in the affairs of the issuer than","page_number":83,"box":{"x":69,"y":884,"width":828,"height":11}},{"id":"f9bb1a71-0c45-45db-a3b9-ab553e0b690a","block_type":"box","text":"that assumed generally by an investor.","page_number":83,"box":{"x":68,"y":899,"width":274,"height":11}},{"id":"b62e855d-fe1f-426c-a167-dcf28bcf41c8","block_type":"box","text":"II-48","page_number":83,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7174535e-b27d-42eb-b6e5-e844cd1f3f4f","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":83,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9f8b76b1-1e4d-43bc-8aad-de4dcaf62bb0","block_type":"box","text":"Lease Obligations.","page_number":84,"box":{"x":102,"y":45,"width":133,"height":11}},{"id":"b3b2b457-e17b-4fa0-968c-4192cb609742","block_type":"box","text":"A Fund may hold par ticipation cer tificates in a lease, an installment purchase contract, or a","page_number":84,"box":{"x":241,"y":45,"width":653,"height":11}},{"id":"fb295f38-33ef-472f-a6ea-d7e27d5af4b8","block_type":"box","text":"conditional sales contract (“lease obligations”). The Manager will monitor the credit standing of each borrower and","page_number":84,"box":{"x":69,"y":60,"width":816,"height":11}},{"id":"aeeeeb60-f5b9-46a2-890f-e11a9cbc9be7","block_type":"box","text":"each entity providing credit suppor t and/or a put option relating to lease obligations.","page_number":84,"box":{"x":69,"y":75,"width":602,"height":11}},{"id":"3437e8f8-8815-45d0-83bb-87fb01e978b1","block_type":"box","text":"Life Settlement Investments.","page_number":84,"box":{"x":102,"y":98,"width":210,"height":9}},{"id":"49ca13e9-91ec-476f-bd3e-05fb74a8f21b","block_type":"box","text":"A Fund may invest in life settlements, which are sales to third par ties, such as the","page_number":84,"box":{"x":318,"y":98,"width":589,"height":11}},{"id":"0cf7a7da-11bf-44ff-b7e4-e2676c8e65ef","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":84,"box":{"x":70,"y":113,"width":838,"height":11}},{"id":"2a44aecc-a91b-4176-8ace-f88615e35414","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":84,"box":{"x":70,"y":128,"width":834,"height":11}},{"id":"d377c23a-ba38-4263-91cd-4b22ace391b3","block_type":"box","text":"receipt of the net benefit as the beneficiary under the policy. Investments in these contracts involve cer tain risks,","page_number":84,"box":{"x":69,"y":143,"width":808,"height":11}},{"id":"89be7765-ef40-4d76-aea9-147af0ea924b","block_type":"box","text":"including liquidity risk, credit risk of the insurance company, and inaccurate estimations of life expectancy of the","page_number":84,"box":{"x":70,"y":158,"width":797,"height":11}},{"id":"172c81a4-8b0e-41c6-83ea-b3b801bdbc91","block_type":"box","text":"insured individuals (viators). These policies may be considered illiquid because they are bought and sold in a","page_number":84,"box":{"x":70,"y":173,"width":775,"height":11}},{"id":"60f7ead3-3bc7-4bc3-be68-f382fdfffefe","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":84,"box":{"x":69,"y":188,"width":805,"height":12}},{"id":"50622cc3-899b-49a2-8028-5b759c9ff792","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":84,"box":{"x":70,"y":203,"width":789,"height":12}},{"id":"e90ad8d1-0227-450c-8092-b7ea44646f06","block_type":"box","text":"investing in policies issued by a diverse range of highly-rated insurance carriers. Fur thermore, a Fund may encounter","page_number":84,"box":{"x":70,"y":218,"width":829,"height":12}},{"id":"a61dc3ea-685d-4371-b10a-1f696ea4f7c3","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":84,"box":{"x":70,"y":234,"width":813,"height":11}},{"id":"d663e376-64cf-46e0-9f3f-1191cd4bd4d9","block_type":"box","text":"reduce this life expectancy risk by investing only in contracts where the life expectancy was reviewed by an","page_number":84,"box":{"x":69,"y":249,"width":758,"height":11}},{"id":"48d52214-515a-4a06-8b3d-f07c0646f424","block_type":"box","text":"experienced actuary, as well as by diversifying its investments across viators of varying ages and medical profiles. In","page_number":84,"box":{"x":69,"y":264,"width":832,"height":11}},{"id":"dbb3e8e9-716e-4c0c-84e3-100108c74de6","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":84,"box":{"x":69,"y":279,"width":800,"height":11}},{"id":"09bdbb62-3f53-423c-9393-032ff27e2dd2","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":84,"box":{"x":68,"y":294,"width":809,"height":11}},{"id":"d55a6b66-e7ce-40f4-a340-7768771d5066","block_type":"box","text":"monitor its investments to ensure that the Fund remains qualified as a regulated investment company.","page_number":84,"box":{"x":69,"y":309,"width":730,"height":11}},{"id":"bdd43888-832c-42b1-9ec3-c7ee51e13219","block_type":"box","text":"Liquidity Risk Management.","page_number":84,"box":{"x":102,"y":332,"width":202,"height":11}},{"id":"a1ac3fef-5f58-4397-b600-2a9ca01164cf","block_type":"box","text":"Rule 22e-4 under the Investment Company Act (the “Liquidity Rule”) requires open","page_number":84,"box":{"x":311,"y":332,"width":591,"height":11}},{"id":"7f1a93a8-8188-4065-aebe-ebaa1c10a471","block_type":"box","text":"end funds, such as the Funds, to adopt a liquidity risk management program and enhance disclosures regarding fund","page_number":84,"box":{"x":69,"y":347,"width":835,"height":11}},{"id":"15cc8bae-3c90-4bee-9254-ee2d679c79b6","block_type":"box","text":"liquidity. As required by the Liquidity Rule, the Funds have implemented a liquidity risk management program (the","page_number":84,"box":{"x":70,"y":362,"width":803,"height":11}},{"id":"ba3011f8-3092-452a-81dd-e9a8697305a6","block_type":"box","text":"“Liquidity Program”), and the Boards of Directors of the Funds, including a majority of the independent Directors,","page_number":84,"box":{"x":70,"y":377,"width":801,"height":12}},{"id":"ce1a09ad-a1f4-4182-baf6-0a703431fe80","block_type":"box","text":"have appointed the Manager as the liquidity risk program administrator of the Liquidity Program. Under the Liquidity","page_number":84,"box":{"x":69,"y":392,"width":822,"height":12}},{"id":"3202faaa-3b9d-490c-a248-1ca874332329","block_type":"box","text":"Program, the Manager assesses, manages, and periodically reviews each Fund’s liquidity risk and classifies each","page_number":84,"box":{"x":69,"y":407,"width":808,"height":12}},{"id":"410d4821-d642-4d96-adfe-b72589f549b0","block_type":"box","text":"investment held by a Fund as a “highly liquid investment,” “moderately liquid investment,” “less liquid investment” or","page_number":84,"box":{"x":70,"y":423,"width":838,"height":11}},{"id":"b14847fd-8ef7-43a4-a9d1-d8a03a9dc913","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":84,"box":{"x":70,"y":438,"width":804,"height":11}},{"id":"0e06031a-bd72-408f-9a74-249c17164b0b","block_type":"box","text":"redeem shares issued by the Fund without significant dilution of the remaining investors’ interests in the Fund. The","page_number":84,"box":{"x":69,"y":453,"width":821,"height":11}},{"id":"14f03686-1fc5-4d1b-8514-9143759fdb4a","block_type":"box","text":"liquidity of a Fund’s por tfolio investments is determined based on relevant market, trading and investment-specific","page_number":84,"box":{"x":70,"y":468,"width":815,"height":11}},{"id":"b8037799-a11c-4779-a37f-fe35f48bd62e","block_type":"box","text":"considerations under the Liquidity Program. To the extent that an investment is deemed to be an illiquid investment","page_number":84,"box":{"x":69,"y":483,"width":823,"height":11}},{"id":"cd748f7f-5c53-4fd1-979c-d00d521e524f","block_type":"box","text":"or a less liquid investment, a Fund can expect to be exposed to greater liquidity risk.","page_number":84,"box":{"x":69,"y":498,"width":601,"height":11}},{"id":"341c6c8d-3c0c-4f9e-a88a-979922975a69","block_type":"box","text":"Master Limited Partnerships.","page_number":84,"box":{"x":102,"y":521,"width":211,"height":11}},{"id":"cbf34a89-8a5f-45f7-baf7-666a887e4566","block_type":"box","text":"Cer tain Funds may invest in publicly traded master limited par tnerships (“MLPs”)","page_number":84,"box":{"x":320,"y":521,"width":577,"height":11}},{"id":"252407f8-b756-4289-aa25-3a8db2895344","block_type":"box","text":"which are limited par tnerships or limited liability companies taxable as par tnerships. MLPs may derive income and","page_number":84,"box":{"x":68,"y":536,"width":816,"height":11}},{"id":"8feacf29-79ad-4e04-b69a-b4f7368d0872","block_type":"box","text":"gains from the exploration, development, mining or production, processing, refining, transpor tation (including","page_number":84,"box":{"x":68,"y":551,"width":777,"height":11}},{"id":"b96b2f31-0375-4f90-8ea0-f221e4aca4a9","block_type":"box","text":"pipelines transpor ting gas, oil, or products thereof), or the marketing of any mineral or natural resources. MLPs","page_number":84,"box":{"x":70,"y":566,"width":792,"height":11}},{"id":"2ddb1be8-fe3b-4bb6-a09b-e43f02dcd02a","block_type":"box","text":"generally have two classes of owners, the general par tner and limited par tners. When investing in an MLP, a Fund","page_number":84,"box":{"x":68,"y":581,"width":811,"height":12}},{"id":"174576af-e9b7-4dd9-8521-6baf44a93dcf","block_type":"box","text":"intends to purchase publicly traded common units issued to limited par tners of the MLP. The general par tner is","page_number":84,"box":{"x":70,"y":596,"width":791,"height":12}},{"id":"c7fbda24-2fd8-4340-8b08-f255ec1f2efd","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":84,"box":{"x":68,"y":612,"width":812,"height":11}},{"id":"814da154-c347-4a86-967b-f33e26f0bf0e","block_type":"box","text":"owned by one or more of such par ties. The general par tner may be structured as a private or publicly traded","page_number":84,"box":{"x":69,"y":627,"width":770,"height":11}},{"id":"8dde15e3-5f59-4140-9b38-51a26fc68c94","block_type":"box","text":"corporation or other entity. The general par tner typically controls the operations and management of the MLP through","page_number":84,"box":{"x":69,"y":642,"width":833,"height":11}},{"id":"91f78eb6-bb5e-4441-a518-2ce71235b033","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":84,"box":{"x":69,"y":657,"width":799,"height":11}},{"id":"ed4946b6-3e15-4b99-95f3-9fea564184a9","block_type":"box","text":"Limited par tners own the remainder of the par tnership, through ownership of common units, and have a limited role","page_number":84,"box":{"x":70,"y":672,"width":825,"height":11}},{"id":"41ac7e3e-3cc1-4246-ba7d-fde74670fb03","block_type":"box","text":"in the par tnership’s operations and management.","page_number":84,"box":{"x":70,"y":687,"width":352,"height":11}},{"id":"a033ec5e-179f-40cd-ac4a-fc0256c0815f","block_type":"box","text":"MLPs are typically structured such that common units and general par tner interests have first priority to receive","page_number":84,"box":{"x":102,"y":710,"width":794,"height":11}},{"id":"13767af8-3776-4b1c-b1fc-adaf49e4776a","block_type":"box","text":"quar terly cash distributions up to an established minimum amount (“minimum quar terly distributions” or “MQD”).","page_number":84,"box":{"x":69,"y":725,"width":809,"height":11}},{"id":"f3f4f953-afb8-41e5-b959-3795d4d92600","block_type":"box","text":"Common and general par tner interests also accrue arrearages in distributions to the extent the MQD is not paid.","page_number":84,"box":{"x":69,"y":740,"width":804,"height":11}},{"id":"f587304c-fd5f-4a1d-8d1b-e51ea16e440d","block_type":"box","text":"Once common and general par tner interests have been paid, subordinated units receive distributions of up to the","page_number":84,"box":{"x":69,"y":755,"width":808,"height":11}},{"id":"76b603dc-9f7a-478f-adb7-4cae22368c31","block_type":"box","text":"MQD; however, subordinated units do not accrue arrearages. Distributable cash in excess of the MQD paid to both","page_number":84,"box":{"x":70,"y":770,"width":816,"height":12}},{"id":"ada4dfc1-8366-4e3c-b874-dd28dfec3a33","block_type":"box","text":"common and subordinated units is distributed to both common and subordinated units generally on a pro rata basis.","page_number":84,"box":{"x":69,"y":786,"width":831,"height":11}},{"id":"b6137399-2ac5-46d2-a204-086783f97fd5","block_type":"box","text":"The general par tner is also eligible to receive incentive distributions if the general par tner operates the business in a","page_number":84,"box":{"x":68,"y":801,"width":835,"height":11}},{"id":"6e5ce3f4-9166-4513-897a-6436e4245255","block_type":"box","text":"manner which results in distributions paid per common unit surpassing specified target levels. As the general par tner","page_number":84,"box":{"x":69,"y":816,"width":838,"height":11}},{"id":"856e32eb-7be1-46fe-ba72-04fc13bf146d","block_type":"box","text":"increases cash distributions to the limited par tners, the general par tner receives an increasingly higher percentage of","page_number":84,"box":{"x":70,"y":831,"width":839,"height":11}},{"id":"bbf199b1-e4b9-4012-9755-10e7e23892d5","block_type":"box","text":"the incremental cash distributions. A common arrangement provides that the general par tner can reach a tier where","page_number":84,"box":{"x":68,"y":846,"width":828,"height":11}},{"id":"2148e7d4-c998-4c7d-b687-4812658b9348","block_type":"box","text":"it receives 50% of every incremental dollar paid to common and subordinated unit holders. These incentive","page_number":84,"box":{"x":70,"y":861,"width":761,"height":11}},{"id":"3319be58-816c-4916-a65e-d04a469dec46","block_type":"box","text":"distributions encourage the general par tner to streamline costs, increase capital expenditures and acquire assets in","page_number":84,"box":{"x":69,"y":876,"width":830,"height":11}},{"id":"a11f6772-f5e5-40ba-872b-718b2d9237f7","block_type":"box","text":"order to increase the par tnership’s cash flow and raise the quar terly cash distribution in order to reach higher tiers.","page_number":84,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"9114f0aa-eaf4-4943-b089-b7fda00c1aa3","block_type":"box","text":"Such results benefit all security holders of the MLP.","page_number":84,"box":{"x":69,"y":906,"width":366,"height":12}},{"id":"4a340ff4-0bb6-4725-8314-9a438dc1f4e8","block_type":"box","text":"II-49","page_number":84,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6401f663-6997-485a-be13-a5cf4a6a7b50","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":84,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"bcbafd9d-718f-4b28-8b2c-b5a07c3f846e","block_type":"box","text":"MLP common units represent a limited par tnership interest in the MLP. Common units are listed and traded on","page_number":85,"box":{"x":102,"y":45,"width":790,"height":11}},{"id":"30ad7b85-2e46-4594-bd75-af7deb1d23aa","block_type":"box","text":"U.S. securities exchanges, with their value fluctuating predominantly based on prevailing market conditions and the","page_number":85,"box":{"x":70,"y":60,"width":820,"height":11}},{"id":"065e955d-cb8f-4a7f-9533-58d49b57e413","block_type":"box","text":"success of the MLP. Cer tain Funds intend to purchase common units in market transactions. Unlike owners of","page_number":85,"box":{"x":69,"y":75,"width":787,"height":11}},{"id":"1d8ef1ab-d8dc-4e5e-bd53-3a7564d201a4","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":85,"box":{"x":69,"y":90,"width":810,"height":11}},{"id":"b691159e-c1c9-4834-82c1-6deb1edfdf4a","block_type":"box","text":"elect directors. In the event of liquidation, common units have preference over subordinated units, but not over debt","page_number":85,"box":{"x":69,"y":105,"width":828,"height":11}},{"id":"99b9f968-9301-49c3-9ffc-52d82f726397","block_type":"box","text":"or preferred units, to the remaining assets of the MLP.","page_number":85,"box":{"x":69,"y":120,"width":387,"height":12}},{"id":"a60e43db-92bf-4361-9409-6a392e1b5189","block_type":"box","text":"Merger Transaction Risk.","page_number":85,"box":{"x":102,"y":143,"width":183,"height":11}},{"id":"0b96fb58-fa8d-428b-8565-ea3a579db9c3","block_type":"box","text":"A Fund may buy stock of the target company in an announced merger transaction prior","page_number":85,"box":{"x":291,"y":143,"width":616,"height":11}},{"id":"65f719b9-2681-4b38-8789-3b7386df6f41","block_type":"box","text":"to the consummation of such transaction. In that circumstance, a Fund would expect to receive an amount (whether","page_number":85,"box":{"x":68,"y":158,"width":827,"height":11}},{"id":"ab0b1c5f-3e79-4354-a9c3-1d41fcff375c","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":85,"box":{"x":70,"y":173,"width":816,"height":11}},{"id":"79c1b886-272e-4343-86ad-8f119405d78a","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":85,"box":{"x":68,"y":188,"width":825,"height":12}},{"id":"b9354a51-3a7d-4984-bf3b-17cc909cb5df","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":85,"box":{"x":69,"y":203,"width":832,"height":12}},{"id":"151f8459-db19-433d-9f7c-71adb07430fe","block_type":"box","text":"the Fund and may lose significant value.","page_number":85,"box":{"x":68,"y":218,"width":286,"height":12}},{"id":"312ac859-542f-41f5-9181-7c03bd770dd4","block_type":"box","text":"Money Market Obligations of Domestic Banks, Foreign Banks and Foreign Branches of U.S. Banks.","page_number":85,"box":{"x":102,"y":241,"width":723,"height":11}},{"id":"b344f4c9-b41c-46c2-bdfe-33a2f10954ad","block_type":"box","text":"Cer tain","page_number":85,"box":{"x":831,"y":241,"width":50,"height":9}},{"id":"1fdce60a-938f-4c98-9bc5-d0b0c010da1f","block_type":"box","text":"Funds may purchase bank obligations, such as cer tificates of deposit, notes, bankers’ acceptances and time","page_number":85,"box":{"x":70,"y":256,"width":778,"height":12}},{"id":"3358ada7-1540-4892-a6c2-c49b1473220a","block_type":"box","text":"deposits, including instruments issued or suppor ted by the credit of U.S. or foreign banks or savings institutions","page_number":85,"box":{"x":69,"y":271,"width":802,"height":12}},{"id":"d3768f5f-136f-4e65-b199-0762138e5886","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":85,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"f807e2a4-6c5a-4ad9-a23d-424412f4e947","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":85,"box":{"x":68,"y":302,"width":794,"height":11}},{"id":"320b46d0-07d2-4b36-96ff-59d69b648b69","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":85,"box":{"x":68,"y":317,"width":781,"height":11}},{"id":"7b76cf53-9b47-4efa-9606-56ad636489a9","block_type":"box","text":"domestic and foreign branches for purposes of a Fund’s investment policies. Investments in shor t-term bank","page_number":85,"box":{"x":69,"y":332,"width":776,"height":11}},{"id":"64bcddce-bc7b-4cb3-adec-f0eaac1bab42","block_type":"box","text":"obligations may include obligations of foreign banks and domestic branches of foreign banks, and also foreign","page_number":85,"box":{"x":69,"y":347,"width":785,"height":11}},{"id":"9c06e58a-b7dd-4bf1-98de-ff37dc1236d5","block_type":"box","text":"branches of domestic banks.","page_number":85,"box":{"x":69,"y":362,"width":205,"height":9}},{"id":"15f1d616-0e58-430a-861e-66c3b8edf5ad","block_type":"box","text":"To the extent consistent with their investment objectives, a Fund may invest in debt obligations of domestic or","page_number":85,"box":{"x":101,"y":385,"width":785,"height":11}},{"id":"35bedd4c-bfaa-42b3-909b-482c3b66b02e","block_type":"box","text":"foreign corporations and banks, and may acquire commercial obligations issued by Canadian corporations and","page_number":85,"box":{"x":68,"y":400,"width":787,"height":11}},{"id":"30b399f9-2bf2-4a28-b7f7-5768f48ae413","block_type":"box","text":"Canadian counterpar ts of U.S. corporations, as well as Europaper, which is U.S. dollar-denominated commercial","page_number":85,"box":{"x":69,"y":415,"width":797,"height":11}},{"id":"df969411-1204-4309-a550-d603c08f7d1f","block_type":"box","text":"paper of a foreign issuer.","page_number":85,"box":{"x":70,"y":430,"width":176,"height":11}},{"id":"42e212c7-a35f-441a-974b-64a7743505b2","block_type":"box","text":"Money Market Securities.","page_number":85,"box":{"x":102,"y":453,"width":188,"height":11}},{"id":"87e2340a-9755-406c-998d-77018f4bb763","block_type":"box","text":"Cer tain Funds may invest in a broad range of shor t-term, high quality, U.S. dollar","page_number":85,"box":{"x":296,"y":453,"width":578,"height":11}},{"id":"65137d1f-37e5-4253-8072-5f4336d9c55a","block_type":"box","text":"denominated instruments, such as government, bank, commercial and other obligations that are available in the","page_number":85,"box":{"x":69,"y":468,"width":802,"height":11}},{"id":"360a7b47-706c-4692-9b34-5a8a4dda822a","block_type":"box","text":"money markets. In par ticular, the Funds may invest in:","page_number":85,"box":{"x":69,"y":483,"width":386,"height":11}},{"id":"35354e5f-c21b-43ad-aeb6-b5b8da7f4416","block_type":"box","text":"(a) U.S. dollar-denominated obligations issued or suppor ted by the credit of U.S. or foreign banks or savings","page_number":85,"box":{"x":69,"y":503,"width":779,"height":12}},{"id":"cafc3927-6f3a-4571-af0a-ce2142f92401","block_type":"box","text":"institutions with total assets in excess of $1 billion (including obligations of foreign branches of such banks);","page_number":85,"box":{"x":102,"y":518,"width":776,"height":12}},{"id":"a2ca24e3-3f09-4e3b-b779-7830e54d82d8","block_type":"box","text":"(b) high quality commercial paper and other obligations issued or guaranteed by U.S. and foreign corporations and","page_number":85,"box":{"x":69,"y":538,"width":821,"height":12}},{"id":"620cd218-c29c-4373-ace1-3c74c24c7068","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":85,"box":{"x":102,"y":554,"width":795,"height":11}},{"id":"ec3efa2a-6e7d-4a94-bf23-56d50618f33a","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":85,"box":{"x":102,"y":569,"width":757,"height":11}},{"id":"f0526b88-ba85-4029-9a72-bd1710029428","block_type":"box","text":"agencies;","page_number":85,"box":{"x":102,"y":584,"width":66,"height":11}},{"id":"aa1676db-c75b-4ada-abe0-7b11aed310bb","block_type":"box","text":"(c) unrated notes, paper and other instruments that are of comparable quality to the instruments described in","page_number":85,"box":{"x":69,"y":604,"width":792,"height":11}},{"id":"29dafa61-19a5-46a3-b2f8-7fcf21cce490","block_type":"box","text":"(b) above as determined by the Fund’s Manager;","page_number":85,"box":{"x":102,"y":619,"width":344,"height":11}},{"id":"bb1ae515-438a-4fb8-8819-0e1664ff34d9","block_type":"box","text":"(d) asset-backed securities (including interests in pools of assets such as mor tgages, installment purchase","page_number":85,"box":{"x":69,"y":639,"width":776,"height":12}},{"id":"523d6768-e397-45c6-96fb-305ae5e08ae8","block_type":"box","text":"obligations and credit card receivables);","page_number":85,"box":{"x":102,"y":655,"width":283,"height":11}},{"id":"17808104-76e9-49b0-b760-c37c52b77650","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":85,"box":{"x":69,"y":675,"width":778,"height":11}},{"id":"aeba7cef-6b04-4a83-8791-ef11c07afb5b","block_type":"box","text":"authorities and related custodial receipts;","page_number":85,"box":{"x":102,"y":690,"width":296,"height":11}},{"id":"003b5144-fc38-4cfd-9dcc-86b0e15c1ef9","block_type":"box","text":"(f) dollar-denominated securities issued or guaranteed by foreign governments or their political subdivisions,","page_number":85,"box":{"x":69,"y":710,"width":782,"height":11}},{"id":"e266a158-1c1e-4f97-9ad5-514f3ff1286d","block_type":"box","text":"agencies or authorities;","page_number":85,"box":{"x":102,"y":725,"width":166,"height":11}},{"id":"fbc3c6d4-110b-4376-a69f-ec0df6e05bbf","block_type":"box","text":"(g) funding agreements issued by highly-rated U.S. insurance companies;","page_number":85,"box":{"x":69,"y":745,"width":528,"height":11}},{"id":"d0fe79ba-f4cb-4910-910b-999664be233c","block_type":"box","text":"(h) securities issued or guaranteed by state or local governmental bodies;","page_number":85,"box":{"x":69,"y":766,"width":534,"height":11}},{"id":"8bc30c89-5d05-4e17-a4d8-1aff61055cdd","block_type":"box","text":"(i) repurchase agreements relating to the above instruments;","page_number":85,"box":{"x":69,"y":786,"width":447,"height":11}},{"id":"5f4a2abb-49fa-475a-ac21-4620ddbeb619","block_type":"box","text":"(j) municipal bonds and notes whose principal and interest payments are guaranteed by the U.S. Government or","page_number":85,"box":{"x":69,"y":806,"width":812,"height":11}},{"id":"02d4640c-de74-49e6-a6be-86bdc78fe922","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":85,"box":{"x":102,"y":821,"width":766,"height":11}},{"id":"5f620a2e-91e1-42e7-bdb9-98014df7e02d","block_type":"box","text":"States;","page_number":85,"box":{"x":102,"y":836,"width":49,"height":10}},{"id":"0716bfbb-73ff-445e-ae20-c68022509977","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":85,"box":{"x":69,"y":856,"width":829,"height":11}},{"id":"51eb865b-0bed-4702-8e86-603b2bd2bf16","block_type":"box","text":"SP-2 or A-2 or higher by S&P, or F-2 or higher by Fitch;","page_number":85,"box":{"x":102,"y":871,"width":379,"height":11}},{"id":"2a994bc1-1272-4ff9-b850-714a7c797a8b","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":85,"box":{"x":69,"y":891,"width":826,"height":12}},{"id":"be072f8d-ddbe-47fd-ad65-c42126c2ad01","block_type":"box","text":"S&P, or F-2 or higher by Fitch;","page_number":85,"box":{"x":102,"y":906,"width":207,"height":12}},{"id":"f5ec813e-5058-4b95-be08-499bd751aa12","block_type":"box","text":"II-50","page_number":85,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7ed82729-9c80-469f-b657-71caa96f4787","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":85,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e1b86a1a-389b-4e3b-8ad0-f33baaa68a17","block_type":"box","text":"(m) municipal bonds rated A or higher by Moody’s, S&P or Fitch;","page_number":86,"box":{"x":69,"y":45,"width":458,"height":11}},{"id":"87fe4c25-b7bd-4cfd-a906-0b589ecabdb8","block_type":"box","text":"(n) unrated notes, paper or other instruments that are of comparable quality to the instruments described above, as","page_number":86,"box":{"x":69,"y":65,"width":837,"height":11}},{"id":"5802a09f-f6b3-49a4-9c41-a12e502aa4ba","block_type":"box","text":"determined by the Fund’s Manager under guidelines established by the Board; and","page_number":86,"box":{"x":101,"y":80,"width":589,"height":11}},{"id":"ba968209-47da-4d0b-862c-ab4e16c6346f","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":86,"box":{"x":69,"y":100,"width":795,"height":11}},{"id":"e4cc6f3f-e642-462c-908e-5c964d46d4e1","block_type":"box","text":"agency or instrumentality thereof or which otherwise depend directly or indirectly on the credit of the United","page_number":86,"box":{"x":102,"y":115,"width":764,"height":11}},{"id":"f8751e68-0631-435c-8506-077d3526b64f","block_type":"box","text":"States.","page_number":86,"box":{"x":102,"y":130,"width":49,"height":9}},{"id":"e727c16d-3ea6-437f-aeec-eaff6cb33800","block_type":"box","text":"Mortgage-Related Securities.","page_number":86,"box":{"x":102,"y":153,"width":213,"height":11}},{"id":"824a3967-82d8-47e3-b059-7a00ad3b7141","block_type":"box","text":"Mor tgage-Backed Securities.","page_number":86,"box":{"x":102,"y":176,"width":203,"height":11}},{"id":"0d1a5f4b-866d-4549-b372-9d29cd86b91c","block_type":"box","text":"Mor tgage-backed securities represent interests in pools of mor tgages in which","page_number":86,"box":{"x":312,"y":176,"width":560,"height":11}},{"id":"74be23cd-fa84-4984-abd9-62a8e4280b21","block_type":"box","text":"payments of both principal and interest on the securities are generally made monthly, in effect “passing through”","page_number":86,"box":{"x":70,"y":191,"width":805,"height":11}},{"id":"e686edf4-1520-4228-8167-b512593b5e12","block_type":"box","text":"monthly payments made by borrowers on the residential or commercial mor tgage loans that underlie the securities","page_number":86,"box":{"x":69,"y":206,"width":819,"height":11}},{"id":"6d9a2fa2-0429-45e1-869b-ffa21e744a5f","block_type":"box","text":"(net of any fees paid to the issuer or guarantor of the securities). Mor tgage-backed securities differ from other forms","page_number":86,"box":{"x":69,"y":221,"width":832,"height":11}},{"id":"46bbb636-5412-4425-aaaa-1311bd23ffa6","block_type":"box","text":"of debt securities, which normally provide for periodic payment of interest in fixed amounts with principal payments at","page_number":86,"box":{"x":69,"y":236,"width":838,"height":11}},{"id":"d6a3bb17-a410-426d-b19b-0bab8c242159","block_type":"box","text":"maturity or specified call dates.","page_number":86,"box":{"x":69,"y":251,"width":222,"height":11}},{"id":"b93df10b-0e2f-40b4-a145-4d1333db886b","block_type":"box","text":"Mor tgage-backed securities are subject to the general risks associated with investing in real estate securities;","page_number":86,"box":{"x":102,"y":274,"width":785,"height":11}},{"id":"888f310b-1be2-46bc-a2f2-be0058e0d696","block_type":"box","text":"that is, they may lose value if the value of the underlying real estate to which a pool of mor tgages relates declines. In","page_number":86,"box":{"x":68,"y":289,"width":838,"height":11}},{"id":"30286387-d425-474f-aa0f-36ab61dfb2ca","block_type":"box","text":"addition, investments in mor tgage-backed securities involve cer tain specific risks. These risks include the failure of a","page_number":86,"box":{"x":69,"y":304,"width":836,"height":11}},{"id":"4165d39b-29a9-49be-9bc0-606d3a957eae","block_type":"box","text":"par ty to meet its commitments under the related operative documents, adverse interest rate changes and the effects","page_number":86,"box":{"x":70,"y":319,"width":837,"height":12}},{"id":"2efa9f19-03fd-49ab-8828-7e8d26de88c1","block_type":"box","text":"of prepayments on mor tgage cash flows. Mor tgage-backed securities are “pass-through” securities, meaning that","page_number":86,"box":{"x":69,"y":334,"width":810,"height":12}},{"id":"2c293672-dc48-411b-8d4f-4b5cf84522e4","block_type":"box","text":"principal and interest payments made by the borrower on the underlying mor tgages are passed through to a Fund.","page_number":86,"box":{"x":70,"y":350,"width":811,"height":11}},{"id":"7c7ce71c-a8f9-4ae3-ab56-dcb2677454ea","block_type":"box","text":"Accordingly, the value of mor tgage-backed securities in which a Fund invests may be par ticularly sensitive to changes","page_number":86,"box":{"x":68,"y":365,"width":837,"height":11}},{"id":"398ac9be-5765-4930-b1ab-f8bf02824e6e","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":86,"box":{"x":70,"y":380,"width":834,"height":11}},{"id":"8c8bbe2c-5d33-43a1-8763-52e3b73baa4e","block_type":"box","text":"successfully may depend in par t upon the ability of the Manager to forecast interest rates and other economic factors","page_number":86,"box":{"x":69,"y":395,"width":840,"height":11}},{"id":"ebacbdcc-4a2d-4a53-84ee-e0d6e0974d78","block_type":"box","text":"correctly. The value of mor tgage-backed securities, like that of traditional fixed-income securities, typically increases","page_number":86,"box":{"x":69,"y":410,"width":827,"height":11}},{"id":"6f6a97ac-5c4f-42b5-ba53-2bbf78c8e343","block_type":"box","text":"when interest rates fall and decreases when interest rates rise. However, mor tgage-backed securities differ from","page_number":86,"box":{"x":68,"y":425,"width":805,"height":11}},{"id":"c8e03ae8-d351-4a3c-9637-f19b00576668","block_type":"box","text":"traditional fixed-income securities because of their potential for prepayment without penalty. The price paid by a Fund","page_number":86,"box":{"x":68,"y":440,"width":834,"height":11}},{"id":"51c656a4-681d-4aa9-b5d7-999d6b6e9192","block_type":"box","text":"for its mor tgage-backed securities, the yield the Fund expects to receive from such securities and the weighted","page_number":86,"box":{"x":68,"y":455,"width":791,"height":12}},{"id":"eb3484f1-d655-4d01-ae41-5c02c8fa884f","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":86,"box":{"x":69,"y":470,"width":816,"height":12}},{"id":"b23e0441-95c9-4510-bd4b-08ef29b11de0","block_type":"box","text":"underlying mor tgages. In a period of declining interest rates, borrowers may prepay the underlying mor tgages more","page_number":86,"box":{"x":69,"y":486,"width":819,"height":11}},{"id":"25df381e-59a3-4d73-9ed2-e715cfbcaa20","block_type":"box","text":"quickly than anticipated, thereby reducing the yield to maturity and the average life of the mor tgage-backed","page_number":86,"box":{"x":69,"y":501,"width":761,"height":11}},{"id":"21bf6e2c-9265-48fd-b2f2-633e12597b86","block_type":"box","text":"securities. Moreover, when a Fund reinvests the proceeds of a prepayment in these circumstances, it will likely","page_number":86,"box":{"x":69,"y":516,"width":791,"height":11}},{"id":"8df0d5cb-9e9e-43ca-a22c-aed0a963609c","block_type":"box","text":"receive a rate of interest that is lower than the rate on the security that was prepaid.","page_number":86,"box":{"x":69,"y":531,"width":602,"height":11}},{"id":"9efae4ef-28ca-4855-a75d-e1c7aabc747c","block_type":"box","text":"To the extent that a Fund purchases mor tgage-backed securities at a premium, mor tgage foreclosures and","page_number":86,"box":{"x":101,"y":554,"width":761,"height":11}},{"id":"87c1c0af-08d5-4474-833d-38be2bb26709","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":86,"box":{"x":70,"y":569,"width":800,"height":11}},{"id":"a79da627-5e2c-42db-accf-773d34345809","block_type":"box","text":"discount, both scheduled payments of principal and unscheduled prepayments will increase current and total returns","page_number":86,"box":{"x":69,"y":584,"width":833,"height":11}},{"id":"dcb9b363-2107-4098-b9b4-7b50a5201b35","block_type":"box","text":"and will accelerate the recognition of income, which, when distributed to shareholders, will be taxable as ordinary","page_number":86,"box":{"x":69,"y":599,"width":809,"height":11}},{"id":"987f4a31-8f08-4cca-a6f4-e74319c94b07","block_type":"box","text":"income. In a period of rising interest rates, prepayments of the underlying mor tgages may occur at a slower than","page_number":86,"box":{"x":70,"y":614,"width":801,"height":11}},{"id":"ab36cec2-d672-44da-8d7d-65ce1ec64697","block_type":"box","text":"expected rate, creating maturity extension risk. This par ticular risk may effectively change a security that was","page_number":86,"box":{"x":69,"y":629,"width":778,"height":11}},{"id":"0c794f47-f592-4086-b9ec-3ffc12c24a83","block_type":"box","text":"considered shor t- or intermediate-term at the time of purchase into a long-term security. Since the value of long-term","page_number":86,"box":{"x":69,"y":644,"width":831,"height":12}},{"id":"b09e8017-d9a3-4e1d-8899-8c516c8d70ab","block_type":"box","text":"securities generally fluctuates more widely in response to changes in interest rates than that of shor ter-term","page_number":86,"box":{"x":69,"y":659,"width":773,"height":12}},{"id":"c92d8cf2-dfd9-414b-be5b-1f3fb6c8302a","block_type":"box","text":"securities, maturity extension risk could increase the inherent volatility of the Fund. Under cer tain interest rate and","page_number":86,"box":{"x":69,"y":675,"width":818,"height":11}},{"id":"0d49c5ff-b101-4ada-bc04-b20117523703","block_type":"box","text":"prepayment scenarios, a Fund may fail to recoup fully its investment in mor tgage-backed securities notwithstanding","page_number":86,"box":{"x":70,"y":690,"width":822,"height":11}},{"id":"ff71326b-5ac2-466a-a830-941620b850b9","block_type":"box","text":"any direct or indirect governmental or agency guarantee.","page_number":86,"box":{"x":69,"y":705,"width":399,"height":11}},{"id":"36ff1c55-efac-4089-a062-3a576e1b36ed","block_type":"box","text":"There are currently three types of mor tgage pass-through securities: (1) those issued by the U.S. Government or","page_number":86,"box":{"x":101,"y":727,"width":802,"height":12}},{"id":"0d754b42-a93d-4216-b92b-fc7a7b503b61","block_type":"box","text":"one of its agencies or instrumentalities, such as the Government National Mor tgage Association (“Ginnie Mae”), the","page_number":86,"box":{"x":69,"y":743,"width":830,"height":11}},{"id":"f9aa71cc-e1c3-4558-89ec-5dc264d46ff6","block_type":"box","text":"Federal National Mor tgage Association (“Fannie Mae”) and the Federal Home Loan Mor tgage Corporation (“Freddie","page_number":86,"box":{"x":70,"y":758,"width":818,"height":11}},{"id":"f80f68c7-be5f-4a1c-abb6-918b5f97ef2f","block_type":"box","text":"Mac”); (2) those issued by private issuers that represent an interest in or are collateralized by pass-through","page_number":86,"box":{"x":70,"y":773,"width":766,"height":11}},{"id":"8fe419f6-f4ca-4f51-9c9c-a7a3e6748a13","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":86,"box":{"x":69,"y":788,"width":808,"height":11}},{"id":"b87c47b8-8f9a-49ef-a1c4-92b40267f73d","block_type":"box","text":"issued by private issuers that represent an interest in or are collateralized by whole mor tgage loans or pass-through","page_number":86,"box":{"x":70,"y":803,"width":825,"height":11}},{"id":"28b7e1eb-dd16-433a-ba56-114995e7eb99","block_type":"box","text":"securities without a government guarantee but that usually have some form of private credit enhancement.","page_number":86,"box":{"x":69,"y":818,"width":761,"height":11}},{"id":"7ea27bb1-c86e-4fdb-beea-29c575b88935","block_type":"box","text":"Ginnie Mae is a wholly owned U.S. Government corporation within the Depar tment of Housing and Urban","page_number":86,"box":{"x":102,"y":841,"width":743,"height":11}},{"id":"c6464651-87ec-4113-a85a-d0faa29efdf4","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":86,"box":{"x":70,"y":856,"width":831,"height":11}},{"id":"d03fd3a5-88a7-4310-96db-abed1987600d","block_type":"box","text":"payment of principal and interest on securities issued by the institutions approved by Ginnie Mae (such as savings","page_number":86,"box":{"x":70,"y":871,"width":815,"height":11}},{"id":"ac728e01-1a43-4803-af41-8f95ddca5fd9","block_type":"box","text":"and loan institutions, commercial banks and mor tgage banks), and backed by pools of Federal Housing","page_number":86,"box":{"x":69,"y":886,"width":737,"height":12}},{"id":"538dda07-baa6-4da2-8b8a-8f5546f6dfce","block_type":"box","text":"Administration (“FHA”)-insured or Veterans’ Administration (“VA”)-guaranteed mor tgages. Pass-through cer tificates","page_number":86,"box":{"x":68,"y":901,"width":814,"height":12}},{"id":"848c9cbe-e861-4d06-b042-438b80c43cac","block_type":"box","text":"II-51","page_number":86,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"19870f3e-6e4d-46b9-834e-93ce5d68a52c","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":86,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0821044d-24fd-49d7-b97e-1e9ec5cf7f1d","block_type":"box","text":"guaranteed by Ginnie Mae (such cer tificates are also known as “Ginnie Maes”) are guaranteed as to the timely","page_number":87,"box":{"x":68,"y":45,"width":794,"height":11}},{"id":"4981eb23-0d8a-48fb-891c-0cba0654edad","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":87,"box":{"x":70,"y":60,"width":828,"height":11}},{"id":"40e55c72-8329-469e-8add-ab97268495ed","block_type":"box","text":"States. Ginnie Mae cer tificates also are suppor ted by the authority of Ginnie Mae to borrow funds from the U.S.","page_number":87,"box":{"x":69,"y":75,"width":798,"height":11}},{"id":"1d9efe63-1a1d-48dc-b076-874d627b3c73","block_type":"box","text":"Treasury Depar tment to make payments under its guarantee. Mor tgage-related securities issued by Fannie Mae","page_number":87,"box":{"x":68,"y":90,"width":798,"height":11}},{"id":"1b1de1c8-efca-4b0d-88e2-bed383e2bde8","block_type":"box","text":"include Fannie Mae guaranteed Mor tgage Pass-Through Cer tificates (also known as “Fannie Maes”), which are","page_number":87,"box":{"x":70,"y":105,"width":788,"height":11}},{"id":"4babe73f-0181-4b16-97fa-f860d5e27d15","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":87,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"070eba3e-cf54-4be0-ae5d-27cc2126eb9d","block_type":"box","text":"faith and credit of the United States, but are suppor ted by the right of Fannie Mae to borrow from the U.S. Treasury","page_number":87,"box":{"x":68,"y":135,"width":825,"height":12}},{"id":"29cae4be-a4f6-4a47-b92c-8b23d885902c","block_type":"box","text":"Depar tment. Fannie Mae was established as a federal agency in 1938 and in 1968 was char tered by Congress as a","page_number":87,"box":{"x":70,"y":150,"width":830,"height":12}},{"id":"a153db26-f505-46b8-9e67-7adf21c94927","block_type":"box","text":"private shareholder-owned company. Mor tgage-related securities issued by Freddie Mac include Freddie Mac","page_number":87,"box":{"x":70,"y":166,"width":770,"height":11}},{"id":"a59793f6-6e43-46f3-a3fc-247e64102cfe","block_type":"box","text":"Mor tgage Par ticipation Cer tificates (also known as “Freddie Macs” or “PCs”). Freddie Mac is a stockholder-owned","page_number":87,"box":{"x":70,"y":181,"width":812,"height":11}},{"id":"fe66eff1-fd78-49ee-b60b-5dca173a93c4","block_type":"box","text":"corporation char tered by Congress in 1970. Freddie Macs are not guaranteed by the United States or by any Federal","page_number":87,"box":{"x":69,"y":196,"width":829,"height":11}},{"id":"35cf2bdf-cac5-4041-b72e-0d097d5c21f4","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":87,"box":{"x":70,"y":211,"width":832,"height":11}},{"id":"c3983ce8-091f-4e46-9b9c-f3706b1abdc3","block_type":"box","text":"Freddie Macs entitle the holder to timely payment of interest, which is guaranteed by Freddie Mac. Freddie Mac","page_number":87,"box":{"x":70,"y":226,"width":792,"height":11}},{"id":"999bc119-3e3b-4172-92fa-92fcf5f7ada5","block_type":"box","text":"guarantees either ultimate collection or timely payment of all principal payments on the underlying mor tgage loans.","page_number":87,"box":{"x":68,"y":241,"width":819,"height":11}},{"id":"9f375349-ba46-4d53-8b2e-8ddef2af8813","block_type":"box","text":"While Freddie Mac generally does not guarantee timely payment of principal, Freddie Mac may remit the amount due","page_number":87,"box":{"x":68,"y":256,"width":829,"height":12}},{"id":"86dd19a3-bc1d-4a2d-865e-41812d7e9ec1","block_type":"box","text":"on account of its guarantee of ultimate payment of principal at any time after default on an underlying mor tgage, but","page_number":87,"box":{"x":69,"y":271,"width":829,"height":12}},{"id":"ed827c20-c7af-4428-9884-b9bf91a393d5","block_type":"box","text":"in no event later than one year after it becomes payable.","page_number":87,"box":{"x":70,"y":286,"width":401,"height":12}},{"id":"78fbc05a-ef4a-4e5c-ad0d-4488ca068ce5","block_type":"box","text":"Private mor tgage pass-through securities are structured similarly to Ginnie Mae, Fannie Mae, and Freddie Mac","page_number":87,"box":{"x":102,"y":309,"width":786,"height":11}},{"id":"8328e673-f2ea-4f7a-8879-bedc55dc4a50","block_type":"box","text":"mor tgage pass-through securities and are issued by originators of and investors in mor tgage loans, including","page_number":87,"box":{"x":69,"y":324,"width":777,"height":12}},{"id":"5ce4b02f-fec4-4dec-b368-cf53bf144b07","block_type":"box","text":"depository institutions, mor tgage banks, investment banks and special purpose subsidiaries of the foregoing.","page_number":87,"box":{"x":69,"y":339,"width":782,"height":12}},{"id":"be8eabf8-d4ad-41d7-af5c-15d185b8d429","block_type":"box","text":"Pools created by private mor tgage pass-through issuers generally offer a higher rate of interest than government","page_number":87,"box":{"x":102,"y":362,"width":802,"height":11}},{"id":"85dfbd92-5d10-4593-b1ba-dfecce11f9ca","block_type":"box","text":"and government-related pools because there are no direct or indirect government or agency guarantees of payments","page_number":87,"box":{"x":69,"y":377,"width":828,"height":12}},{"id":"8313c3af-5e35-4ab0-9a5c-92d81860fc55","block_type":"box","text":"in the private pools. However, timely payment of interest and principal of these pools may be suppor ted by various","page_number":87,"box":{"x":70,"y":392,"width":814,"height":12}},{"id":"b78cba1f-88ab-482a-9c94-0a5584db7bc4","block_type":"box","text":"forms of insurance or guarantees, including individual loan, title, pool and hazard insurance and letters of credit. The","page_number":87,"box":{"x":68,"y":407,"width":833,"height":12}},{"id":"ab067c6b-8e7d-4b78-bcc6-e7bf0315a28d","block_type":"box","text":"insurance and guarantees are issued by governmental entities, private insurers and the mor tgage poolers. The","page_number":87,"box":{"x":70,"y":423,"width":789,"height":11}},{"id":"81d8633a-b82c-4662-96fc-e82c979e28bf","block_type":"box","text":"insurance and guarantees and the creditwor thiness of the issuers thereof will be considered in determining whether","page_number":87,"box":{"x":70,"y":438,"width":827,"height":11}},{"id":"2ec097af-62ef-4a6a-ae7e-7329927d68e5","block_type":"box","text":"a mor tgage-related security meets a Fund’s investment quality standards. There can be no assurance that the private","page_number":87,"box":{"x":69,"y":453,"width":838,"height":11}},{"id":"b352fbdb-632c-48ec-832b-6618bf8a711f","block_type":"box","text":"insurers or guarantors can meet their obligations under the insurance policies or guarantee arrangements. Private","page_number":87,"box":{"x":70,"y":468,"width":810,"height":11}},{"id":"5eb318c9-9e62-475e-91f1-e506aab3ccae","block_type":"box","text":"mor tgage pass-through securities may be bought without insurance or guarantees if, through an examination of the","page_number":87,"box":{"x":69,"y":483,"width":820,"height":11}},{"id":"d1a94f3d-19db-41b5-8238-c203914ead07","block_type":"box","text":"loan experience and practices of the originator/servicers and poolers, the Manager determines that the securities","page_number":87,"box":{"x":70,"y":498,"width":812,"height":11}},{"id":"a7b4306f-1f42-42b1-8a33-8bca0fee5678","block_type":"box","text":"meet a Fund’s quality standards. Any mor tgage-related securities that are issued by private issuers have some","page_number":87,"box":{"x":69,"y":514,"width":790,"height":11}},{"id":"f5c2bcae-e2af-4dcb-8bc4-ca0656c3d504","block_type":"box","text":"exposure to subprime loans as well as to the mor tgage and credit markets generally.","page_number":87,"box":{"x":69,"y":529,"width":604,"height":11}},{"id":"bd865801-8a17-43f1-8ee8-be320ea82fb8","block_type":"box","text":"In addition, mor tgage-related securities that are issued by private issuers are not subject to the underwriting","page_number":87,"box":{"x":102,"y":551,"width":774,"height":11}},{"id":"b08e7d42-d897-4efa-b79e-4da700799af9","block_type":"box","text":"requirements for the underlying mor tgages that are applicable to those mor tgage-related securities that have a","page_number":87,"box":{"x":69,"y":566,"width":791,"height":11}},{"id":"3a9ac97a-0d2c-47d2-af08-60864e6d6386","block_type":"box","text":"government or government-sponsored entity guarantee. As a result, the mor tgage loans underlying private mor tgage","page_number":87,"box":{"x":68,"y":582,"width":832,"height":11}},{"id":"bfe3d427-64ae-436f-9ba7-47f8d48613e9","block_type":"box","text":"related securities may, and frequently do, have less favorable collateral, credit risk or other underwriting","page_number":87,"box":{"x":69,"y":596,"width":742,"height":12}},{"id":"c8a908ac-cf12-4324-b751-7a5f33a3ad9d","block_type":"box","text":"characteristics than government or government-sponsored mor tgage-related securities and have wider variances in a","page_number":87,"box":{"x":69,"y":612,"width":831,"height":11}},{"id":"838cd289-0664-470b-acf1-f56ce14352d6","block_type":"box","text":"number of terms including interest rate, term, size, purpose and borrower characteristics. Privately issued pools more","page_number":87,"box":{"x":69,"y":627,"width":840,"height":11}},{"id":"715c14ee-8f57-40ca-a727-9ba8c5b040cf","block_type":"box","text":"frequently include second mor tgages, high loan-to-value mor tgages and manufactured housing loans. The coupon","page_number":87,"box":{"x":68,"y":642,"width":809,"height":11}},{"id":"42043640-c452-4112-93bb-e2794ba8e1be","block_type":"box","text":"rates and maturities of the underlying mor tgage loans in a private-label mor tgage-related securities pool may vary to","page_number":87,"box":{"x":69,"y":657,"width":828,"height":11}},{"id":"2a9ef6fe-618e-4854-b7bb-92d184e6da12","block_type":"box","text":"a greater extent than those included in a government guaranteed pool, and the pool may include subprime mor tgage","page_number":87,"box":{"x":69,"y":672,"width":830,"height":11}},{"id":"23b97758-55c9-4663-ab83-430c2b5df069","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":87,"box":{"x":70,"y":687,"width":810,"height":11}},{"id":"b35c478b-d7e4-4a69-bbd4-f27b24558d88","block_type":"box","text":"make timely payments on their loans. For these reasons, the loans underlying these securities have had in many","page_number":87,"box":{"x":69,"y":703,"width":804,"height":11}},{"id":"206f726b-67eb-464e-acc8-734994faec8f","block_type":"box","text":"cases higher default rates than those loans that meet government underwriting requirements.","page_number":87,"box":{"x":69,"y":717,"width":669,"height":12}},{"id":"020787cc-6737-4625-813f-08b6ecb660ba","block_type":"box","text":"The risk of non-payment is greater for mor tgage-related securities that are backed by mor tgage pools that","page_number":87,"box":{"x":101,"y":740,"width":754,"height":11}},{"id":"bea4c097-cd85-4cf3-88af-0a8396979c55","block_type":"box","text":"contain subprime loans, but a level of risk exists for all loans. Market factors adversely affecting mor tgage loan","page_number":87,"box":{"x":69,"y":755,"width":795,"height":11}},{"id":"90a27ef8-f50d-49e1-a00c-5280d7c41e5e","block_type":"box","text":"repayments may include a general economic turndown, high unemployment, a general slowdown in the real estate","page_number":87,"box":{"x":69,"y":771,"width":812,"height":11}},{"id":"7abacc2b-95c5-4807-9741-cf956f8f0ee7","block_type":"box","text":"market, a drop in the market prices of real estate, or an increase in interest rates resulting in higher mor tgage","page_number":87,"box":{"x":69,"y":785,"width":788,"height":12}},{"id":"a68b00cc-8946-4ef6-b803-9709018c09f9","block_type":"box","text":"payments by holders of adjustable rate mor tgages.","page_number":87,"box":{"x":70,"y":801,"width":361,"height":11}},{"id":"283c692a-2547-45ca-8012-3a6ff0b28711","block_type":"box","text":"Privately issued mor tgage-related securities are not traded on an exchange and there may be a limited market","page_number":87,"box":{"x":102,"y":823,"width":784,"height":12}},{"id":"03787def-3992-458d-a271-516417711e66","block_type":"box","text":"for the securities, especially when there is a perceived weakness in the mor tgage and real estate market sectors.","page_number":87,"box":{"x":68,"y":838,"width":813,"height":12}},{"id":"7e484c7c-3475-483c-9bf4-5ca0f391055e","block_type":"box","text":"Without an active trading market, mor tgage-related securities held in a Fund’s por tfolio may be par ticularly difficult to","page_number":87,"box":{"x":68,"y":853,"width":837,"height":12}},{"id":"76289320-305c-494f-a37d-16b4f2735ad7","block_type":"box","text":"value because of the complexities involved in assessing the value of the underlying mor tgage loans.","page_number":87,"box":{"x":68,"y":869,"width":714,"height":11}},{"id":"f2e4603a-5535-4511-95a2-333e8b8e8d8e","block_type":"box","text":"Collateralized Mor tgage Obligations (“CMOs”).","page_number":87,"box":{"x":102,"y":891,"width":328,"height":12}},{"id":"b85bcfbe-58db-4d02-ba7f-42e92a2487e5","block_type":"box","text":"CMOs are debt obligations collateralized by residential or","page_number":87,"box":{"x":437,"y":891,"width":407,"height":12}},{"id":"1eb9eecf-9c47-473c-a3bd-0d1a6a6f4dfd","block_type":"box","text":"commercial mor tgage loans or residential or commercial mor tgage pass-through securities. Interest and prepaid","page_number":87,"box":{"x":69,"y":907,"width":800,"height":11}},{"id":"15ec03c6-8531-4f87-b9c4-059272c5f360","block_type":"box","text":"II-52","page_number":87,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"9802243d-3a23-4eae-a8b3-ee5bfd9cf25f","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":87,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"55fd40b5-dd28-4fe7-921e-c83845ea24f3","block_type":"box","text":"principal are generally paid monthly. CMOs may be collateralized by whole mor tgage loans or private mor tgage pass","page_number":88,"box":{"x":70,"y":45,"width":827,"height":11}},{"id":"638f8491-9dbd-467a-8dba-789486c89f77","block_type":"box","text":"through securities but are more typically collateralized by por tfolios of mor tgage pass-through securities guaranteed","page_number":88,"box":{"x":68,"y":60,"width":826,"height":11}},{"id":"60b4aa53-0c17-446e-81fa-02cbf8e3c0ce","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":88,"box":{"x":69,"y":75,"width":833,"height":11}},{"id":"cea6ce52-8098-46a0-abc4-ba79303b2429","block_type":"box","text":"Mor tgage Investment Conduit (“REMIC”). All future references to CMOs also include REMICs.","page_number":88,"box":{"x":70,"y":90,"width":661,"height":11}},{"id":"8dde3e44-8fe5-4f22-8933-894b062f1fff","block_type":"box","text":"CMOs are structured into multiple classes, often referred to as a “tranche,” each issued at a specific adjustable","page_number":88,"box":{"x":102,"y":113,"width":803,"height":11}},{"id":"cbb4a266-95c7-4a1b-85c3-eaf34decb28c","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":88,"box":{"x":69,"y":128,"width":837,"height":11}},{"id":"73327beb-d3a5-42bd-8c8b-d3236f9a2d4d","block_type":"box","text":"distribution date. Actual maturity and average life will depend upon the prepayment experience of the collateral, which","page_number":88,"box":{"x":69,"y":143,"width":838,"height":11}},{"id":"9fa5f901-576a-445d-b2c9-49f6a6079b1c","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":88,"box":{"x":70,"y":158,"width":836,"height":11}},{"id":"7134b949-b382-4f31-a12a-9a3df7c4d78e","block_type":"box","text":"de facto breakdown of the underlying pool of mor tgages according to how quickly the loans are repaid. Monthly","page_number":88,"box":{"x":69,"y":173,"width":791,"height":11}},{"id":"689fc77a-daba-40be-9fad-3ac1af7e9228","block_type":"box","text":"payment of principal received from the pool of underlying mor tgages, including prepayments, is first returned to","page_number":88,"box":{"x":70,"y":188,"width":792,"height":12}},{"id":"bc2a1508-a122-4a13-9046-26e2f6c0596e","block_type":"box","text":"investors holding the shor test maturity class. Investors holding the longer maturity classes usually receive principal","page_number":88,"box":{"x":70,"y":204,"width":820,"height":11}},{"id":"f7f012ad-99ba-432d-9c89-aa8fb7c07ae9","block_type":"box","text":"only after the first class has been retired. An investor may be par tially protected against a sooner than desired return","page_number":88,"box":{"x":69,"y":218,"width":836,"height":12}},{"id":"bf96ec52-8305-4988-81e3-9cf772c129d7","block_type":"box","text":"of principal because of the sequential payments.","page_number":88,"box":{"x":69,"y":234,"width":346,"height":11}},{"id":"c95eb8c9-0173-4ddf-ba16-1740caf38f4e","block_type":"box","text":"Cer tain issuers of CMOs are not considered investment companies pursuant to a rule adopted by the","page_number":88,"box":{"x":102,"y":256,"width":723,"height":11}},{"id":"97dca714-9ef8-49a4-9760-bd3089f7000e","block_type":"box","text":"Commission, and a Fund may invest in the securities of such issuers without the limitations imposed by the","page_number":88,"box":{"x":69,"y":271,"width":768,"height":12}},{"id":"cea834ab-deaa-4932-b628-3fe5cf085407","block_type":"box","text":"Investment Company Act on investments by a Fund in other investment companies. In addition, in reliance on an","page_number":88,"box":{"x":70,"y":287,"width":800,"height":11}},{"id":"7f349d87-1f31-43ab-92ec-35014ba19c22","block_type":"box","text":"earlier Commission interpretation, a Fund’s investments in cer tain other qualifying CMOs, which cannot or do not rely","page_number":88,"box":{"x":69,"y":302,"width":836,"height":11}},{"id":"9100be26-ffb4-4817-8ca8-27b5a5b2e35d","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":88,"box":{"x":69,"y":317,"width":793,"height":11}},{"id":"ec80b8dc-eddb-48d9-b26d-f8cde773c9da","block_type":"box","text":"investment companies. In order to be able to rely on the Commission’s interpretation, these CMOs must be","page_number":88,"box":{"x":70,"y":332,"width":767,"height":11}},{"id":"d9a64627-f386-4d90-8669-a47481f48baa","block_type":"box","text":"unmanaged, fixed asset issuers, that: (1) invest primarily in mor tgage-backed securities; (2) do not issue redeemable","page_number":88,"box":{"x":69,"y":347,"width":838,"height":11}},{"id":"ea753fb6-c8b7-4a0e-b961-a3af82c12866","block_type":"box","text":"securities; (3) operate under general exemptive orders exempting them from all provisions of the Investment","page_number":88,"box":{"x":69,"y":362,"width":773,"height":11}},{"id":"fd77357a-5181-4f53-a90d-6705eba57b5e","block_type":"box","text":"Company Act; and (4) are not registered or regulated under the Investment Company Act as investment companies.","page_number":88,"box":{"x":69,"y":377,"width":821,"height":12}},{"id":"22bba1c1-00ec-4be8-acd0-8b84e3885629","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":88,"box":{"x":68,"y":392,"width":836,"height":12}},{"id":"6b4a8cb4-9b1c-4f94-9ca5-d5257c592581","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":88,"box":{"x":69,"y":407,"width":795,"height":12}},{"id":"4b1056aa-ea0f-4b1d-97b9-d006cb2bad15","block_type":"box","text":"securities of any single such entity.","page_number":88,"box":{"x":69,"y":423,"width":248,"height":11}},{"id":"eab4b0ae-4331-419c-9f4e-b84c8af8b6cb","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":88,"box":{"x":101,"y":445,"width":807,"height":12}},{"id":"218a1cc5-34b3-481b-8366-c1837c893cad","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":88,"box":{"x":69,"y":460,"width":805,"height":12}},{"id":"aa087768-17d4-4d6a-8d27-e52974c1a952","block_type":"box","text":"concurrently on a propor tionate or dispropor tionate basis. These simultaneous payments are taken into account in","page_number":88,"box":{"x":69,"y":476,"width":819,"height":11}},{"id":"b7570ae5-d7cc-48e7-a9fc-5adb76c351ac","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":88,"box":{"x":69,"y":491,"width":829,"height":11}},{"id":"3e109a0a-e289-4d0e-940e-7270d080c678","block_type":"box","text":"a time while paying interest to several classes. A wide variety of REMIC Cer tificates may be issued in the parallel pay","page_number":88,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"3de69ab2-e749-4c3a-821a-3cc5dc45f38f","block_type":"box","text":"or sequential pay structures. These securities include accrual cer tificates (also known as “Z-Bonds”), which only","page_number":88,"box":{"x":69,"y":521,"width":802,"height":11}},{"id":"a2436f39-b6c5-46b5-affd-ca8b0071ba9b","block_type":"box","text":"accrue interest at a specified rate until all other cer tificates having an earlier final distribution date have been retired","page_number":88,"box":{"x":69,"y":536,"width":833,"height":11}},{"id":"4d1a6914-ef2a-49aa-aa4f-cec5e9f097f0","block_type":"box","text":"and are conver ted thereafter to an interest-paying security. Floating rate CMOs are securities whose coupon rate","page_number":88,"box":{"x":69,"y":551,"width":801,"height":11}},{"id":"53af1e69-569b-40a7-874d-a1e3070e8115","block_type":"box","text":"fluctuates according to some formula related to an existing market index or rate. Typical indices would include the","page_number":88,"box":{"x":68,"y":566,"width":813,"height":11}},{"id":"d9788046-5013-447e-acfc-56306d32ec54","block_type":"box","text":"eleventh district cost-of-funds index (“COFI”), one-year Treasury yields, and ten-year Treasury yields.","page_number":88,"box":{"x":69,"y":581,"width":708,"height":11}},{"id":"cb855672-5a67-4d8d-89e4-a74016bb4658","block_type":"box","text":"Classes of CMOs also include planned amor tization classes (“PACs”) and targeted amor tization classes","page_number":88,"box":{"x":102,"y":604,"width":742,"height":11}},{"id":"20f32e01-e0b4-4bff-8c66-bc3f281fc806","block_type":"box","text":"(“TACs”). PAC bonds generally require payments of a specified amount of principal on each payment date. The","page_number":88,"box":{"x":69,"y":619,"width":784,"height":11}},{"id":"1bc24621-74ad-4bbc-93a6-906c5c2a3512","block_type":"box","text":"scheduled principal payments for PAC Cer tificates generally have the highest priority on each payment date after","page_number":88,"box":{"x":69,"y":634,"width":800,"height":12}},{"id":"aa2934f0-db43-4d6e-806b-06b3488a3e22","block_type":"box","text":"interest due has been paid to all classes entitled to receive interest currently. Shor tfalls, if any, are added to the","page_number":88,"box":{"x":70,"y":649,"width":802,"height":12}},{"id":"a11512b6-1cda-46c4-b6c5-e0a951b4cf84","block_type":"box","text":"amount payable on the next payment date. The PAC Cer tificate payment schedule is taken into account in calculating","page_number":88,"box":{"x":69,"y":664,"width":834,"height":12}},{"id":"a7fcae45-cc99-46a7-a3c2-bfd32db159e1","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":88,"box":{"x":68,"y":680,"width":835,"height":11}},{"id":"efbea8e2-f4af-494c-8c32-bab193efc3c8","block_type":"box","text":"be created that absorb most of the volatility in the underlying mor tgage assets. These tranches (often called","page_number":88,"box":{"x":69,"y":695,"width":772,"height":11}},{"id":"db246a00-eb48-4afd-ab23-7875255902e3","block_type":"box","text":"“suppor ts” or “companion” tranches) tend to have market prices and yields that are more volatile than the PAC","page_number":88,"box":{"x":70,"y":710,"width":792,"height":11}},{"id":"e151dbc0-6824-4b47-b9c1-cdc32cf7555d","block_type":"box","text":"classes.","page_number":88,"box":{"x":69,"y":725,"width":57,"height":9}},{"id":"d1311e68-ac91-4004-a7a1-131dfccd4ff4","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":88,"box":{"x":101,"y":748,"width":774,"height":11}},{"id":"6c75f0b4-3b5a-4e3f-9fc7-f175baa7c260","block_type":"box","text":"date to one or more classes of REMIC Cer tificates. A PAC’s payment schedule, however, remains in effect as long as","page_number":88,"box":{"x":69,"y":763,"width":835,"height":11}},{"id":"2bedd0fd-6ae9-4328-acc7-3633e18b6393","block_type":"box","text":"prepayment rates on the underlying mor tgages do not exceed cer tain ranges. In contrast, a TAC provides investors","page_number":88,"box":{"x":70,"y":778,"width":815,"height":11}},{"id":"905280ce-a41e-48b1-8074-9f1b6db3d1b3","block_type":"box","text":"with protection, to a cer tain level, against either faster than expected or slower than expected prepayment rates, but","page_number":88,"box":{"x":68,"y":793,"width":833,"height":11}},{"id":"262c2cd6-69ea-4637-a29a-6203abb6de30","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":88,"box":{"x":69,"y":808,"width":839,"height":11}},{"id":"77530096-a371-4db1-a582-e77b580a5903","block_type":"box","text":"also tend to have market prices and yields that are more volatile than PACs.","page_number":88,"box":{"x":69,"y":823,"width":541,"height":11}},{"id":"cec89ee8-a3f8-4953-8d2d-a1e8e8bdc894","block_type":"box","text":"Adjustable Rate Mor tgage Securities.","page_number":88,"box":{"x":101,"y":846,"width":265,"height":11}},{"id":"b3ab361e-a161-4949-9804-a1363651615f","block_type":"box","text":"Adjustable rate mor tgage securities (“ARMs”) are pass-through securities","page_number":88,"box":{"x":372,"y":846,"width":523,"height":11}},{"id":"2a40223a-4c42-442b-be66-3ac4c705719c","block_type":"box","text":"collateralized by mor tgages with adjustable rather than fixed rates. ARMs eligible for inclusion in a mor tgage pool","page_number":88,"box":{"x":69,"y":861,"width":807,"height":11}},{"id":"d614c254-b965-4948-a303-805ebcd228fd","block_type":"box","text":"generally provide for a fixed initial mor tgage interest rate for a set number of scheduled monthly payments. After that","page_number":88,"box":{"x":68,"y":876,"width":835,"height":11}},{"id":"c3e54455-0891-4086-b737-8e13a8eecf9d","block_type":"box","text":"schedule of payments has been completed, the interest rates are subject to periodic adjustment based on changes","page_number":88,"box":{"x":69,"y":891,"width":824,"height":12}},{"id":"bba6c5fd-a64d-4ebe-9f05-ba2253a8c161","block_type":"box","text":"to a designated benchmark index.","page_number":88,"box":{"x":68,"y":907,"width":241,"height":11}},{"id":"492eb1a2-e84f-448c-988f-398593bf87aa","block_type":"box","text":"II-53","page_number":88,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f7cc3b92-e6e7-4c59-8de8-a229d5e5d2f9","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":88,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d17f6f8b-e2cf-4a45-9f5a-f833e133c2ae","block_type":"box","text":"ARMs contain maximum and minimum rates beyond which the mor tgage interest rate may not vary over the","page_number":89,"box":{"x":101,"y":45,"width":767,"height":11}},{"id":"f0a457da-26e9-43c9-ab09-5617cc1ee86e","block_type":"box","text":"lifetime of the security. In addition, cer tain ARMs provide for additional limitations on the maximum amount by which","page_number":89,"box":{"x":70,"y":60,"width":828,"height":11}},{"id":"81d590b9-f1d7-4a72-a63e-6f7bff0d5a2c","block_type":"box","text":"the mor tgage interest rate may adjust for any single adjustment period. In the event that market rates of interest rise","page_number":89,"box":{"x":68,"y":75,"width":837,"height":11}},{"id":"37180d12-8238-446e-b046-23cf1fbbd5c5","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":89,"box":{"x":69,"y":90,"width":830,"height":11}},{"id":"03c4a31c-2cfb-4b39-ba1a-1db09b9746f3","block_type":"box","text":"of interest. In these circumstances, the market value of the ARM security will likely have fallen.","page_number":89,"box":{"x":69,"y":105,"width":676,"height":11}},{"id":"58a3fce7-9d7d-405e-9dca-4c32f00696ea","block_type":"box","text":"Cer tain ARMs contain limitations on changes in the required monthly payment. In the event that a monthly","page_number":89,"box":{"x":102,"y":128,"width":757,"height":11}},{"id":"aad79623-10d1-49e1-affd-b9e646c7c046","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":89,"box":{"x":70,"y":143,"width":822,"height":11}},{"id":"bbf157f6-f2aa-4b75-9cfe-83da826600a6","block_type":"box","text":"balance of the mor tgage loan, which is repaid through future monthly payments. If the monthly payment for such an","page_number":89,"box":{"x":69,"y":158,"width":823,"height":11}},{"id":"1825347e-77c9-4526-98be-33574dcd287f","block_type":"box","text":"instrument exceeds the sum of the interest accrued at the applicable mor tgage interest rate and the principal","page_number":89,"box":{"x":70,"y":173,"width":782,"height":11}},{"id":"b3f3b633-cc22-4830-904b-dae29288b709","block_type":"box","text":"payment required at such point to amor tize the outstanding principal balance over the remaining term of the loan, the","page_number":89,"box":{"x":70,"y":188,"width":838,"height":12}},{"id":"6d36b38f-f4fd-4f77-be6c-341e7e9cd65d","block_type":"box","text":"excess is then used to reduce the outstanding principal balance of the ARM.","page_number":89,"box":{"x":69,"y":203,"width":544,"height":12}},{"id":"1ec99275-0846-43ff-a045-efb0562b4169","block_type":"box","text":"CMO Residuals.","page_number":89,"box":{"x":102,"y":226,"width":112,"height":9}},{"id":"01cfe4ff-aa4a-413b-ab1f-b08cf7a16c5a","block_type":"box","text":"CMO residuals are derivative mor tgage securities issued by agencies or instrumentalities of the","page_number":89,"box":{"x":221,"y":226,"width":682,"height":11}},{"id":"2c2cc2ec-a3e6-4cf9-b256-b8da39acd263","block_type":"box","text":"U.S. Government or by private originators of, or investors in, mor tgage loans, including savings and loan","page_number":89,"box":{"x":70,"y":241,"width":740,"height":11}},{"id":"1fb36e64-1839-406b-a3ea-b4e93de31c86","block_type":"box","text":"associations, homebuilders, mor tgage banks, commercial banks, investment banks, and special purpose entities of","page_number":89,"box":{"x":69,"y":256,"width":829,"height":12}},{"id":"8ccec230-5781-48dc-a621-080410bbd1ba","block_type":"box","text":"the foregoing. The cash flow generated by the mor tgage assets underlying a series of CMOs is applied first to make","page_number":89,"box":{"x":68,"y":271,"width":826,"height":12}},{"id":"57bbbce6-5d4e-433d-8a7d-066b33fa7afa","block_type":"box","text":"required payments of principal and interest on the CMOs and second to pay the related administrative expenses and","page_number":89,"box":{"x":69,"y":286,"width":831,"height":12}},{"id":"4ef529eb-6935-4b54-8d81-7cf38c139175","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":89,"box":{"x":69,"y":302,"width":827,"height":11}},{"id":"89f4690d-c163-4ef9-a4d7-c2324879115d","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":89,"box":{"x":69,"y":317,"width":829,"height":11}},{"id":"d24525bc-553e-4f53-9845-7edb28fa8a1e","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":89,"box":{"x":69,"y":332,"width":838,"height":11}},{"id":"689944af-c348-4eb3-93be-7f7068166285","block_type":"box","text":"CMO will depend on, among other things, the characteristics of the mor tgage assets, the coupon rate of each class","page_number":89,"box":{"x":69,"y":347,"width":825,"height":11}},{"id":"c9ce62b7-774f-46d6-9ee7-2e96a66c4922","block_type":"box","text":"of CMO, prevailing interest rates, the amount of administrative expenses and the prepayment experience on the","page_number":89,"box":{"x":69,"y":362,"width":798,"height":11}},{"id":"1dc07efd-e15d-4b1d-9238-ccf2245fc5e6","block_type":"box","text":"mor tgage assets. In par t, the yield to maturity on the CMO residuals is extremely sensitive to prepayments on the","page_number":89,"box":{"x":69,"y":377,"width":813,"height":12}},{"id":"494625b2-d81f-454c-934e-27a06e331cd4","block_type":"box","text":"related underlying mor tgage assets, in the same manner as an interest-only class of stripped mor tgage-related","page_number":89,"box":{"x":69,"y":392,"width":790,"height":12}},{"id":"4a1de858-9090-4b1e-b071-87b123bc85a6","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":89,"box":{"x":69,"y":407,"width":805,"height":12}},{"id":"7ce1262c-132c-404e-a7b8-40e22642619d","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":89,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"d77ac1e0-2bad-4af5-9ee2-703fe4f62506","block_type":"box","text":"interest rate adjustments are based. In cer tain circumstances, a Fund may fail to recoup fully its initial investment in","page_number":89,"box":{"x":70,"y":438,"width":831,"height":11}},{"id":"cbb08c94-49fa-4a26-acc5-50cea840bce9","block_type":"box","text":"a CMO residual.","page_number":89,"box":{"x":69,"y":453,"width":112,"height":9}},{"id":"910af3da-9084-4360-bd01-b83aaa0637c3","block_type":"box","text":"CMO residuals are generally purchased and sold by institutional investors through one or more investment","page_number":89,"box":{"x":102,"y":476,"width":758,"height":11}},{"id":"72337fa2-5676-4066-b04b-ad1eafd465a6","block_type":"box","text":"banking firms acting as brokers or dealers. Transactions in CMO residuals are generally completed only after careful","page_number":89,"box":{"x":69,"y":491,"width":827,"height":11}},{"id":"c3761392-faca-4b31-a9f9-d4d0b0196f40","block_type":"box","text":"review of the characteristics of the securities in question. In addition, CMO residuals may or, pursuant to an","page_number":89,"box":{"x":69,"y":506,"width":769,"height":11}},{"id":"1658098f-df22-4fae-a45e-9c249f99c114","block_type":"box","text":"exemption therefrom, may not have been registered under the Securities Act. Residual interests generally are junior","page_number":89,"box":{"x":69,"y":521,"width":825,"height":11}},{"id":"80881f4b-ad69-4fad-a494-ebf93ac5c2e3","block_type":"box","text":"to, and may be significantly more volatile than, “regular” CMO and REMIC interests. CMO residuals, whether or not","page_number":89,"box":{"x":68,"y":536,"width":820,"height":11}},{"id":"4bac0696-4307-415b-a1bf-2e6200921e3f","block_type":"box","text":"registered under the Securities Act, may be subject to cer tain restrictions on transferability.","page_number":89,"box":{"x":69,"y":551,"width":650,"height":11}},{"id":"d0c9cb97-3b3b-4f71-bc87-b46c41830f2e","block_type":"box","text":"Stripped Mor tgage-Backed Securities.","page_number":89,"box":{"x":102,"y":574,"width":267,"height":11}},{"id":"89c4b20e-e71c-451e-9ed5-763ed2aa1d9a","block_type":"box","text":"A Fund may invest in stripped mor tgage-backed securities (“SMBSs”)","page_number":89,"box":{"x":375,"y":574,"width":493,"height":11}},{"id":"06d62380-1f4e-4322-8f4f-1a5fa90d1abc","block_type":"box","text":"issued by agencies or instrumentalities of the United States. SMBSs are derivative multi-class mor tgage-backed","page_number":89,"box":{"x":70,"y":589,"width":798,"height":11}},{"id":"1bac530d-3bce-43bc-afdb-64b4516b77d4","block_type":"box","text":"securities. SMBS arrangements commonly involve two classes of securities that receive different propor tions of the","page_number":89,"box":{"x":69,"y":604,"width":826,"height":11}},{"id":"107ecd7d-4429-49c6-9608-ca6bd630d2b9","block_type":"box","text":"interest and principal distributions on a pool of mor tgage assets. A common variety of SMBS is where one class (the","page_number":89,"box":{"x":70,"y":619,"width":832,"height":11}},{"id":"19742989-440c-4c05-85c7-6a5bd9f79fae","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":89,"box":{"x":70,"y":634,"width":821,"height":12}},{"id":"1becb252-eba5-409d-bca2-8181cc781056","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":89,"box":{"x":68,"y":649,"width":826,"height":12}},{"id":"9088f467-09e7-42b5-83b3-298ecb1c8291","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":89,"box":{"x":69,"y":664,"width":822,"height":11}},{"id":"0d58fc22-7dfe-4954-8e90-3af2af59d904","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":89,"box":{"x":70,"y":680,"width":834,"height":11}},{"id":"3b17fe64-4105-4a0b-bedb-72e3bdce8cee","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":89,"box":{"x":68,"y":695,"width":800,"height":11}},{"id":"8c46c491-4f32-483c-8660-8617755beebe","block_type":"box","text":"related underlying assets, and a rapid rate of principal prepayments in excess of that considered in pricing the","page_number":89,"box":{"x":69,"y":710,"width":786,"height":11}},{"id":"581cef17-e04d-4c05-8db1-188963e594be","block_type":"box","text":"securities will have a material adverse effect on an IO security’s yield to maturity. If the underlying mor tgage assets","page_number":89,"box":{"x":69,"y":725,"width":823,"height":11}},{"id":"c4c61580-eb69-463c-a6bd-f33ceea4a8b2","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":89,"box":{"x":69,"y":740,"width":832,"height":11}},{"id":"84d4eb5f-5a6a-45c2-afe0-9ce28b24edd1","block_type":"box","text":"In addition, there are cer tain types of IOs that represent the interest por tion of a par ticular class as opposed to the","page_number":89,"box":{"x":70,"y":755,"width":824,"height":11}},{"id":"ea92005a-5cc0-4946-b4fd-3fd48a734332","block_type":"box","text":"interest por tion of the entire pool. The sensitivity of this type of IO to interest rate fluctuations may be increased","page_number":89,"box":{"x":70,"y":770,"width":800,"height":11}},{"id":"ff5d55c5-6b80-4fe0-8a7d-eab6764db268","block_type":"box","text":"because of the characteristics of the principal por tion to which they relate. As a result of the above factors, a Fund","page_number":89,"box":{"x":69,"y":785,"width":818,"height":12}},{"id":"3f8f94d2-aafb-4c4f-b150-0c70ea8a26a9","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":89,"box":{"x":68,"y":801,"width":840,"height":11}},{"id":"560cb66a-5be3-4a5f-bbe3-a56ba3e9f8a5","block_type":"box","text":"will be matched with cer tain purchases of other securities, such as POs, inverse floating rate CMOs or fixed rate","page_number":89,"box":{"x":68,"y":816,"width":802,"height":11}},{"id":"d5dfdb00-a1a1-49bb-80b6-084d16f2651a","block_type":"box","text":"securities; as interest rates fall, presenting a greater risk of unanticipated prepayments of principal, the negative","page_number":89,"box":{"x":69,"y":831,"width":805,"height":11}},{"id":"049fc2bf-7b30-44a6-b820-57eff66c4317","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":89,"box":{"x":69,"y":846,"width":814,"height":11}},{"id":"e5412221-e863-44a1-9533-8aa9d3a16dc5","block_type":"box","text":"the inverse floating rate CMOs or the increased appreciation on the POs or fixed rate securities.","page_number":89,"box":{"x":68,"y":861,"width":683,"height":11}},{"id":"12dae2a5-be07-43cd-b0ec-6b988634c58d","block_type":"box","text":"Tiered Index Bonds.","page_number":89,"box":{"x":103,"y":884,"width":138,"height":9}},{"id":"785ff6e2-4be4-45a5-aa6a-3330a5271051","block_type":"box","text":"Tiered index bonds are forms of mor tgage-related securities. The interest rate on a tiered","page_number":89,"box":{"x":247,"y":884,"width":638,"height":11}},{"id":"32181747-a530-480e-bcd9-37657015a16d","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":89,"box":{"x":70,"y":899,"width":825,"height":11}},{"id":"ca244bf1-5527-4f6a-910e-38aa8405265e","block_type":"box","text":"II-54","page_number":89,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"cd9aa11c-e5c0-4053-9e90-f913122269cc","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":89,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"bd99c660-f389-40c8-961b-e085b07fa22b","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":90,"box":{"x":70,"y":45,"width":827,"height":11}},{"id":"14889be5-5862-43ec-a5d1-4a57ec9dac9e","block_type":"box","text":"rises above the “strike” rate, the interest rate of the tiered index bond will decrease. Thus, under these","page_number":90,"box":{"x":69,"y":60,"width":738,"height":10}},{"id":"84485244-edef-4d65-9320-fe748eda1ff9","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":90,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"66dae0ac-5c31-45b4-b37a-657337ee42cf","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":90,"box":{"x":70,"y":90,"width":836,"height":11}},{"id":"ef6cd59e-4478-466d-9083-87272eaba01a","block_type":"box","text":"that of a fixed-rate bond.","page_number":90,"box":{"x":68,"y":105,"width":174,"height":9}},{"id":"f8eb2454-ee2c-42f3-afbf-28e32b2596bb","block_type":"box","text":"TBA Commitments.","page_number":90,"box":{"x":103,"y":128,"width":133,"height":9}},{"id":"663dcc37-ec73-4c0a-9690-6117606a1746","block_type":"box","text":"Cer tain Funds may enter into “to be announced” or “TBA” commitments. TBA commitments","page_number":90,"box":{"x":243,"y":128,"width":653,"height":11}},{"id":"8ece0c78-3fb6-45a2-8b34-c3de4d021a72","block_type":"box","text":"are forward agreements for the purchase or sale of securities, including mor tgage-backed securities for a fixed price,","page_number":90,"box":{"x":69,"y":143,"width":834,"height":11}},{"id":"b5e98829-3a48-438a-9ca5-07eb05b69274","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":90,"box":{"x":68,"y":158,"width":825,"height":11}},{"id":"5bb5e7eb-41c5-49c5-ba76-db71705e5344","block_type":"box","text":"identified at the trade date. However, delivered securities must meet specified terms, including issuer, rate and","page_number":90,"box":{"x":70,"y":173,"width":793,"height":11}},{"id":"8f352e9e-2e2a-417d-8e40-9629202416e8","block_type":"box","text":"mor tgage terms. When the Fund enters into a TBA commitment for the sale of mor tgage-backed securities for a fixed","page_number":90,"box":{"x":69,"y":188,"width":833,"height":12}},{"id":"58975d67-4850-4863-bed5-6b01b64a2014","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":90,"box":{"x":70,"y":203,"width":804,"height":12}},{"id":"bc340c20-a1b2-47f5-bb66-69a3ea0005ab","block_type":"box","text":"shor t position in such TBA securities), the Fund may or may not hold the types of mor tgage-backed securities","page_number":90,"box":{"x":69,"y":218,"width":779,"height":12}},{"id":"9828282b-53a2-4c66-a10e-d562c9f2e8db","block_type":"box","text":"required to be delivered. See “—When-Issued Securities, Delayed Delivery Securities and Forward Commitments”","page_number":90,"box":{"x":69,"y":234,"width":810,"height":11}},{"id":"c61bb8b4-d9bf-4c34-a7fa-6f288b86305d","block_type":"box","text":"below.","page_number":90,"box":{"x":69,"y":249,"width":43,"height":9}},{"id":"999995d9-0b7e-454a-9b26-d8f9ad9996a2","block_type":"box","text":"Mor tgage Dollar Rolls.","page_number":90,"box":{"x":102,"y":272,"width":157,"height":11}},{"id":"e9d22a3c-3f81-4b9c-aa1d-009eed18bcbd","block_type":"box","text":"Cer tain Funds may invest in mor tgage dollar rolls. In a mor tgage dollar roll transaction, a","page_number":90,"box":{"x":266,"y":272,"width":634,"height":11}},{"id":"8d3bef0b-78c4-4190-8df1-54850e8fb18c","block_type":"box","text":"Fund sells mor tgage-backed securities for delivery in the current month and simultaneously contracts to repurchase","page_number":90,"box":{"x":70,"y":286,"width":825,"height":12}},{"id":"64c9e2ef-39ed-4fbb-80be-a8627308ca8b","block_type":"box","text":"substantially similar securities on a specified future date. The securities that are repurchased will bear the same","page_number":90,"box":{"x":69,"y":302,"width":805,"height":11}},{"id":"d411fac3-0bd0-4841-9ad8-5d91d7be66dd","block_type":"box","text":"interest rate and a similar maturity as those sold, but pools of mor tgages collateralizing those securities may have","page_number":90,"box":{"x":70,"y":317,"width":817,"height":11}},{"id":"dcc1deb3-bf6b-459b-aece-01af42f20671","block_type":"box","text":"different prepayment histories than those sold. During the period between the sale and repurchase, a Fund will not","page_number":90,"box":{"x":69,"y":332,"width":820,"height":11}},{"id":"84585be5-a121-486e-8abf-e751c33b6ae3","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":90,"box":{"x":69,"y":347,"width":827,"height":11}},{"id":"5e6bc2e6-1b28-44df-8574-d0fcc179b83d","block_type":"box","text":"additional instruments for the Fund, and the income from these investments will generate income for the Fund. If","page_number":90,"box":{"x":69,"y":362,"width":806,"height":11}},{"id":"90297646-f7fe-4265-bacd-9be1857ea41c","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":90,"box":{"x":69,"y":377,"width":833,"height":12}},{"id":"d07ed464-b644-464b-8383-21a00701d2ab","block_type":"box","text":"securities sold as par t of the dollar roll, the use of this technique will diminish the investment per formance of a Fund","page_number":90,"box":{"x":69,"y":392,"width":836,"height":11}},{"id":"9d5811f5-bb7b-48b6-a0b9-17e0bfef3959","block_type":"box","text":"compared with what the per formance would have been without the use of dollar rolls.","page_number":90,"box":{"x":69,"y":407,"width":607,"height":11}},{"id":"4b86d279-0663-429c-ba70-eea903b5810e","block_type":"box","text":"Each mor tgage dollar roll transaction is accounted for as a sale or purchase of a por tfolio security and a","page_number":90,"box":{"x":102,"y":430,"width":744,"height":11}},{"id":"76d37199-94c8-441a-98a7-b06973b71771","block_type":"box","text":"subsequent purchase or sale of a substantially similar security in the forward market. Transactions in mor tgage","page_number":90,"box":{"x":69,"y":445,"width":796,"height":12}},{"id":"266d5a85-55a7-48aa-bb34-927844a1f674","block_type":"box","text":"dollar rolls may increase trading costs and por tfolio turnover.","page_number":90,"box":{"x":69,"y":460,"width":433,"height":12}},{"id":"1629897a-6686-499f-a71d-6e3ed05a7f5c","block_type":"box","text":"In the event the buyer of the securities under a mor tgage dollar roll files for bankruptcy or becomes insolvent, a","page_number":90,"box":{"x":102,"y":483,"width":795,"height":11}},{"id":"73e16567-c091-4f04-8998-0f6667b12dfb","block_type":"box","text":"Fund’s use of the proceeds of the current sale por tion of the transaction may be restricted pending a determination","page_number":90,"box":{"x":70,"y":498,"width":824,"height":11}},{"id":"50768cfc-36ee-49f2-bcd3-0d665e85cc0e","block_type":"box","text":"by the other par ty, or its trustee or receiver, whether to enforce the Fund’s obligation to purchase the similar","page_number":90,"box":{"x":69,"y":513,"width":774,"height":12}},{"id":"aa676905-7126-4f3c-870c-0cc1514f13ab","block_type":"box","text":"securities in the forward transaction.","page_number":90,"box":{"x":69,"y":528,"width":261,"height":9}},{"id":"529b15ba-8aba-4c30-b144-a21e6c90038a","block_type":"box","text":"A Fund may engage in dollar roll transactions to enhance returns. Successful use of mor tgage dollar rolls may","page_number":90,"box":{"x":101,"y":551,"width":785,"height":11}},{"id":"6da64a1b-c53c-4898-9942-9337ca24c49f","block_type":"box","text":"depend upon the Manager’s ability to correctly predict interest rates and prepayments. Dollar rolls involve the risk","page_number":90,"box":{"x":69,"y":566,"width":812,"height":11}},{"id":"ed2b855e-b324-4674-aab5-e0035eaffaf9","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":90,"box":{"x":68,"y":581,"width":824,"height":11}},{"id":"7a5f6dac-b651-4658-831a-62167ff0ac59","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":90,"box":{"x":69,"y":596,"width":824,"height":12}},{"id":"9bdee5da-74b7-42fb-9a60-a89f435ea3b2","block_type":"box","text":"of the forward commitment. Dollar rolls are speculative techniques that can be deemed to involve leverage. There is","page_number":90,"box":{"x":69,"y":612,"width":828,"height":11}},{"id":"68bcc6b1-7ca0-46bd-8c12-5bc1f4f05597","block_type":"box","text":"no assurance that dollar rolls can be successfully employed.","page_number":90,"box":{"x":69,"y":627,"width":430,"height":11}},{"id":"29da02cc-874b-4166-919a-bcbda9077572","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":90,"box":{"x":102,"y":649,"width":759,"height":12}},{"id":"c9595596-8eca-4db5-a61e-4fb6151f0898","block_type":"box","text":"securities (","page_number":90,"box":{"x":69,"y":665,"width":78,"height":11}},{"id":"b33f1377-a153-43d0-9980-ec822b4bb9df","block_type":"box","text":"e.g.","page_number":90,"box":{"x":148,"y":666,"width":25,"height":10}},{"id":"dd18b7b2-ebf5-4efe-8f54-69e203399aca","block_type":"box","text":", dollar rolls and firm and standby commitments, including TBA commitments) and non-standard","page_number":90,"box":{"x":176,"y":664,"width":681,"height":12}},{"id":"118ad6c3-fd7e-402c-a03b-eaee0c7959f0","block_type":"box","text":"settlement cycle securities notwithstanding the limitation on the issuance of senior securities in Section 18 of the","page_number":90,"box":{"x":69,"y":680,"width":813,"height":11}},{"id":"7bd29149-9297-4724-b922-6c2e74aa75e4","block_type":"box","text":"Investment Company Act, provided that the transaction meets the Delayed-Settlement Securities Provision (as","page_number":90,"box":{"x":70,"y":695,"width":783,"height":11}},{"id":"d8233fa2-a4c5-4bd4-8444-dcb372e16406","block_type":"box","text":"defined below under “—When-Issued Securities, Delayed Delivery Securities and Forward Commitments”). If a when","page_number":90,"box":{"x":69,"y":710,"width":832,"height":11}},{"id":"5d67c35f-6863-4ddf-b031-fa52676bd7e8","block_type":"box","text":"issued, forward-settling or non-standard settlement cycle security does not satisfy the Delayed-Settlement Securities","page_number":90,"box":{"x":70,"y":725,"width":830,"height":11}},{"id":"1206a783-002f-4c48-a26b-83eecce13205","block_type":"box","text":"Provision, then it is treated as a Derivatives Transaction under Rule 18f-4. See “—Derivatives — Regulation of","page_number":90,"box":{"x":69,"y":740,"width":788,"height":11}},{"id":"2af26632-3d09-430e-9fc7-244249dde4a7","block_type":"box","text":"Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":90,"box":{"x":70,"y":755,"width":489,"height":11}},{"id":"58cc605c-7df0-4e7b-8ab2-84fff46c9f3a","block_type":"box","text":"Net Interest Margin (NIM) Securities.","page_number":90,"box":{"x":102,"y":778,"width":260,"height":11}},{"id":"4f529480-3949-46d9-a304-845d82db20df","block_type":"box","text":"A Fund may invest in net interest margin (“NIM”) securities. These","page_number":90,"box":{"x":368,"y":778,"width":473,"height":11}},{"id":"a07c18bb-bb35-4777-a041-16c3d7a935cf","block_type":"box","text":"securities are derivative interest-only mor tgage securities structured off home equity loan transactions. NIM","page_number":90,"box":{"x":69,"y":793,"width":768,"height":11}},{"id":"6286cb4e-d8bc-4742-a94a-34832e4e1589","block_type":"box","text":"securities receive any “excess” interest computed after paying coupon costs, servicing costs and fees and any credit","page_number":90,"box":{"x":69,"y":808,"width":836,"height":11}},{"id":"1b850a91-5d14-432c-8b51-c830ef182dff","block_type":"box","text":"losses associated with the underlying pool of home equity loans. Like traditional stripped mor tgage-backed","page_number":90,"box":{"x":70,"y":823,"width":760,"height":12}},{"id":"36fea5d6-22a9-4ae1-95eb-b5531a381e0b","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":90,"box":{"x":69,"y":839,"width":832,"height":11}},{"id":"07e308d5-771d-456e-92f5-76fa4e9205c5","block_type":"box","text":"to the rate of principal payments (including prepayments) on the underlying home equity loans. NIM securities are","page_number":90,"box":{"x":68,"y":853,"width":810,"height":12}},{"id":"355fd57c-2109-452b-bc79-a4ad94887630","block_type":"box","text":"highly sensitive to credit losses on the underlying collateral and the timing in which those losses are taken.","page_number":90,"box":{"x":69,"y":869,"width":764,"height":11}},{"id":"8e2228b5-0e65-4c07-abae-8e58383076a5","block_type":"box","text":"Municipal Investments.","page_number":90,"box":{"x":102,"y":891,"width":169,"height":11}},{"id":"705be4ed-1ee0-48b8-a06c-c50981144060","block_type":"box","text":"II-55","page_number":90,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"499795e3-4bd1-42e6-ad14-557be9bf4402","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":90,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"76c430c2-3469-423f-95ed-bae8ab8f9df3","block_type":"box","text":"Cer tain Funds may invest in obligations issued by or on behalf of states, territories and possessions of the","page_number":91,"box":{"x":102,"y":45,"width":763,"height":11}},{"id":"8df78e7e-3886-4d6f-8183-7ca515644ea2","block_type":"box","text":"United States and the District of Columbia and their political subdivisions, agencies and instrumentalities, the","page_number":91,"box":{"x":70,"y":60,"width":783,"height":11}},{"id":"dcb52ad8-ccc2-4ca0-898e-b8cc6fda2702","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":91,"box":{"x":70,"y":75,"width":833,"height":11}},{"id":"434da849-4eb7-4970-9a1b-9782075e3df6","block_type":"box","text":"income tax purposes (“Municipal Bonds”). Cer tain of the Municipal Funds may also invest in Municipal Bonds that","page_number":91,"box":{"x":70,"y":90,"width":813,"height":11}},{"id":"84555e15-8733-4ff4-9c2d-8e9ce24c2dfb","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":91,"box":{"x":70,"y":105,"width":836,"height":11}},{"id":"7c588428-8036-443e-9629-b869c12b25ba","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":91,"box":{"x":69,"y":120,"width":779,"height":12}},{"id":"093f7368-a966-41bc-b2f8-bf9578281128","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":91,"box":{"x":70,"y":135,"width":838,"height":11}},{"id":"87c66f41-14e5-4836-b1c7-1414fb587c2e","block_type":"box","text":"or by an agency or instrumentality thereof, if the Manager believes such securities to pay interest excludable from","page_number":91,"box":{"x":69,"y":150,"width":810,"height":12}},{"id":"ecafa029-3c12-4159-baa7-f96ab6d1e2b6","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":91,"box":{"x":68,"y":166,"width":834,"height":11}},{"id":"0db95ac6-8371-4fe2-99df-80e319e4ba8c","block_type":"box","text":"or state and local personal proper ty taxes of the designated state (“Non-Municipal Tax-Exempt Securities”). Non","page_number":91,"box":{"x":69,"y":181,"width":801,"height":11}},{"id":"0c902b46-1263-4bca-a562-c4ec25deae98","block_type":"box","text":"Municipal Tax-Exempt Securities could include trust cer tificates or other instruments evidencing interest in one or","page_number":91,"box":{"x":70,"y":196,"width":807,"height":11}},{"id":"488e0ed5-cbc2-4dd0-8094-928517e4c1a0","block_type":"box","text":"more long-term municipal securities. Non-Municipal Tax-Exempt Securities also may include securities issued by other","page_number":91,"box":{"x":69,"y":211,"width":837,"height":11}},{"id":"d5a01c16-c9fa-4945-8278-621511a6ca2a","block_type":"box","text":"investment companies that invest in municipal bonds, to the extent such investments are permitted by applicable","page_number":91,"box":{"x":70,"y":226,"width":809,"height":11}},{"id":"30500317-a14c-4729-bc5c-7dd9b89f6047","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":91,"box":{"x":70,"y":241,"width":826,"height":11}},{"id":"fee50d5a-cde4-4d09-a9cb-f6528c6513a6","block_type":"box","text":"purposes will be considered “Municipal Bonds” for purposes of a Municipal Fund’s investment objective and policies.","page_number":91,"box":{"x":70,"y":256,"width":834,"height":11}},{"id":"4c0c8d9e-291c-479d-a33c-499e564530f5","block_type":"box","text":"Non-Municipal Tax-Exempt Securities that pay interest excludable from gross income for purposes of U.S. federal","page_number":91,"box":{"x":70,"y":271,"width":800,"height":12}},{"id":"de396fff-aa1a-4abb-8fad-178dfeaa0cb3","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":91,"box":{"x":70,"y":286,"width":819,"height":12}},{"id":"9b2e108d-1c52-4b4c-852f-806ad265a6e5","block_type":"box","text":"exempt from state and local personal proper ty taxes of that state will be considered “State Municipal Bonds” for","page_number":91,"box":{"x":69,"y":302,"width":805,"height":11}},{"id":"8e7f5d81-0690-4c36-b2b8-11798bc60fd0","block_type":"box","text":"purposes of the investment objective and policies of each of California Municipal Oppor tunities Fund, New Jersey","page_number":91,"box":{"x":70,"y":317,"width":805,"height":11}},{"id":"540d72aa-d375-4e31-9879-7240a9601c25","block_type":"box","text":"Municipal Bond Fund, New York Municipal Oppor tunities Fund and Pennsylvania Municipal Bond Fund.","page_number":91,"box":{"x":70,"y":332,"width":721,"height":11}},{"id":"29dda6e7-395b-4929-916f-206d5b0f281e","block_type":"box","text":"Risk Factors and Special Considerations Relating to Municipal Bonds.","page_number":91,"box":{"x":102,"y":355,"width":495,"height":11}},{"id":"53984e3a-5a4a-400d-9034-4bd63f3f64a6","block_type":"box","text":"The risks and special considerations","page_number":91,"box":{"x":603,"y":355,"width":260,"height":11}},{"id":"a5dcbf00-658b-4e28-b4ff-0553825a2368","block_type":"box","text":"involved in investment in Municipal Bonds vary with the types of instruments being acquired. Investments in Non","page_number":91,"box":{"x":70,"y":370,"width":806,"height":11}},{"id":"da322728-6264-488b-b4eb-5f06c3f4916a","block_type":"box","text":"Municipal Tax-Exempt Securities may present similar risks, depending on the par ticular product. Cer tain municipal","page_number":91,"box":{"x":70,"y":385,"width":810,"height":11}},{"id":"77402dae-ec50-47ee-b607-e397bf62c751","block_type":"box","text":"instruments in which a Fund may invest may be characterized as derivatives.","page_number":91,"box":{"x":70,"y":400,"width":544,"height":11}},{"id":"62393b6c-6c08-499b-9668-2a34894c9f9c","block_type":"box","text":"The value of Municipal Bonds generally may be affected by uncer tainties in the municipal markets as a result of","page_number":91,"box":{"x":101,"y":423,"width":799,"height":11}},{"id":"99f704b2-dc6f-4a6c-bcfd-e7a41b3cf485","block_type":"box","text":"legislation or litigation, including legislation or litigation that changes the taxation of Municipal Bonds or the rights of","page_number":91,"box":{"x":70,"y":438,"width":829,"height":11}},{"id":"1946ac42-7360-4b9b-99cc-320ba0d6323a","block_type":"box","text":"Municipal Bond holders in the event of a bankruptcy. Municipal bankruptcies are rare and cer tain provisions of the","page_number":91,"box":{"x":70,"y":453,"width":814,"height":11}},{"id":"2cd415a7-fa34-472e-b1b4-64188c3f6df7","block_type":"box","text":"U.S. Bankruptcy Code governing such bankruptcies are unclear. Fur ther, the application of state law to Municipal","page_number":91,"box":{"x":70,"y":468,"width":802,"height":11}},{"id":"e62b5e5e-748b-416d-a5e8-b806c3cb7e94","block_type":"box","text":"Bond issuers could produce varying results among the states or among Municipal Bond issuers within a state. These","page_number":91,"box":{"x":70,"y":483,"width":834,"height":11}},{"id":"974fe79e-9800-4b32-ac46-7a58efb6351f","block_type":"box","text":"uncer tainties could have a significant impact on the prices of the Municipal Bonds in which a Fund invests.","page_number":91,"box":{"x":69,"y":498,"width":761,"height":11}},{"id":"66e9cd9b-02eb-49b8-8b29-e1fef3635ea5","block_type":"box","text":"II-56","page_number":91,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b0a535d8-0efb-4a91-a12b-675e384428b8","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":91,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5c8a4c9e-bb40-42d0-8e49-d6eeb8363b83","block_type":"box","text":"Description of Municipal Bonds.","page_number":92,"box":{"x":70,"y":45,"width":224,"height":11}},{"id":"999484c3-ee81-4035-9b04-1b76f3ebcdaf","block_type":"box","text":"Municipal Bonds include debt obligations issued to obtain funds for various public purposes, including the","page_number":92,"box":{"x":102,"y":67,"width":754,"height":12}},{"id":"daade980-f266-4a7c-bac9-4a3b8b41e2e4","block_type":"box","text":"construction of a wide range of public facilities, refunding of outstanding obligations and obtaining funds for general","page_number":92,"box":{"x":69,"y":82,"width":824,"height":12}},{"id":"7be5843e-7a1c-4962-b3de-1d619436f536","block_type":"box","text":"operating expenses and loans to other public institutions and facilities. In addition, cer tain types of bonds are issued","page_number":92,"box":{"x":69,"y":98,"width":836,"height":11}},{"id":"6bfa997c-acc1-4203-82ad-32f04597cb3e","block_type":"box","text":"by or on behalf of public authorities to finance various privately owned or operated facilities, including cer tain","page_number":92,"box":{"x":69,"y":113,"width":776,"height":11}},{"id":"7432ef90-cc6b-4265-8d38-c5b495594f90","block_type":"box","text":"facilities for the local furnishing of electric energy or gas, sewage facilities, solid waste disposal facilities and other","page_number":92,"box":{"x":68,"y":128,"width":822,"height":11}},{"id":"c1ba6ea4-3a8a-4ce0-bb14-08f65d54fd7f","block_type":"box","text":"specialized facilities. Such obligations are included within the term Municipal Bonds if the interest paid thereon is","page_number":92,"box":{"x":69,"y":143,"width":810,"height":11}},{"id":"1be7187c-d544-48ed-b578-e78da5a76b7a","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":92,"box":{"x":69,"y":158,"width":808,"height":11}},{"id":"638e4b68-596d-4275-b20c-8870f760e558","block_type":"box","text":"types of private activity bonds, the proceeds of which are used for the construction, equipment or improvement of","page_number":92,"box":{"x":68,"y":173,"width":812,"height":11}},{"id":"37adcbf3-119b-41fd-9736-9dc3c806bc01","block_type":"box","text":"privately operated industrial or commercial facilities, may constitute Municipal Bonds, although the current U.S.","page_number":92,"box":{"x":70,"y":188,"width":792,"height":12}},{"id":"d93b42ea-b937-4cce-af8b-8a1f331db0ad","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":92,"box":{"x":68,"y":203,"width":835,"height":12}},{"id":"420da014-c035-44f2-9120-a77fb425ecb3","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":92,"box":{"x":68,"y":218,"width":840,"height":12}},{"id":"6a366429-8f1b-411e-89e5-47aeed29c064","block_type":"box","text":"obligation” and “revenue” or “special obligation” bonds, which latter category includes private activity bonds (“PABs”)","page_number":92,"box":{"x":69,"y":234,"width":838,"height":11}},{"id":"84be5fe2-6e1e-4893-b129-3be0b2fd864d","block_type":"box","text":"(or “industrial development bonds” under pre-1986 law).","page_number":92,"box":{"x":69,"y":249,"width":401,"height":11}},{"id":"28894961-20c3-4034-8369-6681f6ea7d54","block_type":"box","text":"General Obligation Bonds.","page_number":92,"box":{"x":102,"y":272,"width":184,"height":11}},{"id":"336fe99c-5e72-436c-a06f-2ba80c65d764","block_type":"box","text":"General obligation bonds are secured by the issuer’s pledge of its full faith, credit and","page_number":92,"box":{"x":292,"y":271,"width":613,"height":12}},{"id":"815c8344-357d-49c7-9c21-716bdcc44689","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":92,"box":{"x":68,"y":286,"width":816,"height":12}},{"id":"afca8f05-8122-4793-85b6-13a9b805a749","block_type":"box","text":"however, by provisions of its state constitution or laws, and an entity’s creditwor thiness will depend on many factors,","page_number":92,"box":{"x":69,"y":302,"width":834,"height":11}},{"id":"f3c2de26-b43d-4498-a63f-a4ac8129a364","block_type":"box","text":"including potential erosion of its tax base due to population declines, natural disasters, declines in the state’s","page_number":92,"box":{"x":70,"y":317,"width":786,"height":11}},{"id":"de8ed245-d77a-4e78-819d-eaa93c729c14","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":92,"box":{"x":70,"y":332,"width":835,"height":11}},{"id":"c9f11f33-6b4e-417e-9473-a08d31d086a2","block_type":"box","text":"state legislative proposals or voter initiatives to limit ad valorem real proper ty taxes and the extent to which the entity","page_number":92,"box":{"x":69,"y":347,"width":840,"height":11}},{"id":"d0bcc0ab-0316-4a86-ac4d-8baeca11544c","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":92,"box":{"x":69,"y":362,"width":782,"height":11}},{"id":"f115320b-051f-4a1b-afa0-3d9c4a89fc42","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":92,"box":{"x":68,"y":377,"width":791,"height":12}},{"id":"db2208e8-1d78-4ba1-8d92-46a3c3fa2af0","block_type":"box","text":"repayment of principal when due is affected by the issuer’s maintenance of its tax base.","page_number":92,"box":{"x":69,"y":392,"width":630,"height":12}},{"id":"f87092e2-70ec-447a-8996-33685ec8ee9f","block_type":"box","text":"Revenue Bonds.","page_number":92,"box":{"x":102,"y":415,"width":114,"height":9}},{"id":"b04e955f-cbbe-4e06-aba6-9bf519d0e815","block_type":"box","text":"Revenue bonds are payable only from the revenues derived from a par ticular facility or class of","page_number":92,"box":{"x":223,"y":415,"width":676,"height":11}},{"id":"444883e0-73af-42fc-9078-2e78ab5d5bc8","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":92,"box":{"x":68,"y":430,"width":791,"height":11}},{"id":"d6632b98-f73c-4f80-aa47-28e5e6be0e4d","block_type":"box","text":"payments from the user of the facility being financed; accordingly, the timely payment of interest and the repayment","page_number":92,"box":{"x":70,"y":445,"width":824,"height":12}},{"id":"8533eff6-449a-4ed3-bb13-6aef214d064e","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":92,"box":{"x":69,"y":460,"width":798,"height":12}},{"id":"ffe1e397-9275-46cd-881f-f88e799613b7","block_type":"box","text":"viability of such facility or such revenue source.","page_number":92,"box":{"x":68,"y":475,"width":336,"height":12}},{"id":"0a665fa6-dbdd-4e1c-b4a4-47e498b955d5","block_type":"box","text":"Revenue bonds issued by state or local agencies to finance the development of low-income, multi-family housing","page_number":92,"box":{"x":102,"y":498,"width":801,"height":11}},{"id":"6d3ebd17-d3b1-4459-a4c5-e412cf5c17c6","block_type":"box","text":"involve special risks in addition to those associated with municipal bonds generally, including that the underlying","page_number":92,"box":{"x":70,"y":514,"width":800,"height":11}},{"id":"6071f364-40a8-48a7-80a1-499cbc464c9f","block_type":"box","text":"proper ties may not generate sufficient income to pay expenses and interest costs. Such bonds are generally non","page_number":92,"box":{"x":70,"y":528,"width":810,"height":12}},{"id":"3c856763-1b1f-44f0-b2c1-171fa34650d0","block_type":"box","text":"recourse against the proper ty owner, may be junior to the rights of others with an interest in the proper ties, may pay","page_number":92,"box":{"x":69,"y":543,"width":830,"height":12}},{"id":"9fae22ca-0673-4ce5-aa9d-9abd6573ae5d","block_type":"box","text":"interest that changes based in par t on the financial per formance of the proper ty, may be prepayable without penalty","page_number":92,"box":{"x":70,"y":559,"width":828,"height":11}},{"id":"71e31e68-3c69-4c65-a403-c68b7acd940f","block_type":"box","text":"and may be used to finance the construction of housing developments which, until completed and rented, do not","page_number":92,"box":{"x":69,"y":574,"width":804,"height":11}},{"id":"10afccbb-deee-441f-a449-ae8ca8068023","block_type":"box","text":"generate income to pay interest. Increases in interest rates payable on senior obligations may make it more difficult","page_number":92,"box":{"x":68,"y":589,"width":830,"height":11}},{"id":"6cd3cd42-d8bb-4b83-88ab-8b129e22b21b","block_type":"box","text":"for issuers to meet payment obligations on subordinated bonds.","page_number":92,"box":{"x":68,"y":604,"width":457,"height":11}},{"id":"4d0a3456-e3cb-4c98-b94c-68992887f63e","block_type":"box","text":"PABs.","page_number":92,"box":{"x":102,"y":627,"width":38,"height":9}},{"id":"98dc72f0-d3ed-44bf-b7f4-97d8535d5aa2","block_type":"box","text":"PABs are, in most cases, tax-exempt securities issued by states, municipalities or public authorities to","page_number":92,"box":{"x":147,"y":627,"width":730,"height":11}},{"id":"a6f4bb01-313b-4f05-988c-ba825612d493","block_type":"box","text":"provide funds, usually through a loan or lease arrangement, to a private entity for the purpose of financing","page_number":92,"box":{"x":70,"y":642,"width":755,"height":11}},{"id":"16cb3177-5113-4484-81bf-2cc4a747ef2a","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":92,"box":{"x":69,"y":657,"width":797,"height":11}},{"id":"d0fa145e-2c79-44a4-882b-3da1f3a536f1","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":92,"box":{"x":69,"y":672,"width":793,"height":11}},{"id":"15580a84-d27d-4d30-b504-03aa7a8b2c2c","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":92,"box":{"x":70,"y":687,"width":840,"height":11}},{"id":"dfc8d1f2-4ec4-41f8-a570-697027932ff1","block_type":"box","text":"such bonds. Therefore, an investor should understand that repayment of such bonds generally depends on the","page_number":92,"box":{"x":69,"y":702,"width":789,"height":12}},{"id":"48076b5c-4843-4778-96b5-d1571ddfd245","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":92,"box":{"x":69,"y":717,"width":832,"height":12}},{"id":"5db07b75-b2cc-4285-8fd7-69518367da4b","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":92,"box":{"x":69,"y":732,"width":802,"height":12}},{"id":"4676dcd8-e4fe-46ac-acc1-d28dfb1405c1","block_type":"box","text":"many factors including the size of the entity, its capital structure, demand for its products or services, competition,","page_number":92,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"0af92557-7bf1-4cfe-948e-556d1cdc7098","block_type":"box","text":"general economic conditions, government regulation and the entity’s dependence on revenues for the operation of","page_number":92,"box":{"x":68,"y":763,"width":816,"height":11}},{"id":"5f681003-b82a-434a-8fda-edbdab7e1250","block_type":"box","text":"the par ticular facility being financed.","page_number":92,"box":{"x":68,"y":778,"width":258,"height":11}},{"id":"363360a8-be7a-4c81-8bbc-ad0d867a8543","block_type":"box","text":"Moral Obligation Bonds.","page_number":92,"box":{"x":102,"y":801,"width":169,"height":11}},{"id":"1a502e06-372e-40e9-adf0-122fb1a584dd","block_type":"box","text":"“Moral obligation” bonds are normally issued by special purpose public authorities. If an","page_number":92,"box":{"x":278,"y":801,"width":628,"height":11}},{"id":"c040fba5-2524-4173-a332-5edb9dfb2200","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":92,"box":{"x":70,"y":816,"width":809,"height":11}},{"id":"9872070e-62e0-4143-873d-2b1e83b838bc","block_type":"box","text":"commitment but not a legal obligation of the state or municipality that created the special purpose public authority","page_number":92,"box":{"x":69,"y":831,"width":816,"height":11}},{"id":"2ca9e1c1-abc6-45e4-9847-dcc70acd96a7","block_type":"box","text":"that issued the bonds.","page_number":92,"box":{"x":68,"y":846,"width":160,"height":9}},{"id":"48866b7d-2b57-4a35-9761-0c168870cc45","block_type":"box","text":"Municipal Notes.","page_number":92,"box":{"x":102,"y":869,"width":118,"height":11}},{"id":"bc9f0ede-7c27-452b-bd9a-9a9388471fc5","block_type":"box","text":"Municipal notes are shor ter term municipal debt obligations. They may provide interim financing","page_number":92,"box":{"x":227,"y":869,"width":683,"height":11}},{"id":"cf2c5528-ffde-43b0-bb4a-1647d23d32b4","block_type":"box","text":"in anticipation of tax collection, bond sales or revenue receipts. If there is a shor tfall in the anticipated proceeds,","page_number":92,"box":{"x":70,"y":884,"width":807,"height":11}},{"id":"4a4382ed-3a50-4038-af5b-28ecc66f73de","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":92,"box":{"x":69,"y":899,"width":739,"height":11}},{"id":"972f4660-e397-4614-a4d8-3bb0f1f91900","block_type":"box","text":"II-57","page_number":92,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b8f7c2c2-e62f-447c-8245-a6e13e45bab6","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":92,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a3ee5d75-75e0-4435-98fe-dcafa8bae08c","block_type":"box","text":"Municipal Commercial Paper.","page_number":93,"box":{"x":102,"y":45,"width":205,"height":11}},{"id":"a7c49762-b999-40a8-b77c-a3bc8cf85ccd","block_type":"box","text":"Municipal commercial paper is generally unsecured and issued to meet shor t-term","page_number":93,"box":{"x":314,"y":45,"width":586,"height":11}},{"id":"3ed464ea-ab16-432a-b830-8f0b13060952","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":93,"box":{"x":68,"y":60,"width":767,"height":11}},{"id":"55097fc9-cc03-4434-8201-8524cfdbf68c","block_type":"box","text":"bankruptcy, unsecured creditors are repaid only after the secured creditors out of the assets, if any, that remain.","page_number":93,"box":{"x":69,"y":75,"width":803,"height":11}},{"id":"ba952fd6-cb51-4de4-92d3-8594620fbe61","block_type":"box","text":"Municipal Lease Obligations.","page_number":93,"box":{"x":102,"y":98,"width":203,"height":11}},{"id":"acbeca0e-268b-40b7-8cc3-62a2a92c2583","block_type":"box","text":"Also included within the general category of Municipal Bonds are cer tificates of","page_number":93,"box":{"x":311,"y":98,"width":566,"height":11}},{"id":"08a28b1f-a17a-4223-8dec-95d10a9e77a1","block_type":"box","text":"par ticipation (“COPs”) issued by government authorities or entities to finance the acquisition or construction of","page_number":93,"box":{"x":70,"y":113,"width":791,"height":11}},{"id":"3fa7acf3-a06b-4a14-8868-200c7bc1d5ae","block_type":"box","text":"equipment, land and/or facilities. The COPs represent par ticipations in a lease, an installment purchase contract or a","page_number":93,"box":{"x":69,"y":128,"width":840,"height":11}},{"id":"07baad8c-2705-49e7-a4f0-2f2fc8f9f816","block_type":"box","text":"conditional sales contract (hereinafter collectively called “lease obligations”) relating to such equipment, land or","page_number":93,"box":{"x":69,"y":143,"width":800,"height":11}},{"id":"b04d509d-1e64-485e-9bb7-e5c9e1523a2b","block_type":"box","text":"facilities. Municipal leases, like other municipal debt obligations, are subject to the risk of non-payment. Although","page_number":93,"box":{"x":68,"y":158,"width":809,"height":11}},{"id":"a2f34056-5d44-481a-8c07-60ef1c02e84c","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":93,"box":{"x":70,"y":173,"width":820,"height":11}},{"id":"66e9ddaf-4bf2-44d5-b42b-5d38ca860f4c","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":93,"box":{"x":70,"y":188,"width":808,"height":12}},{"id":"23cc4d21-07a8-4f17-8235-6bf5ec53f21f","block_type":"box","text":"payments due under the lease obligation. However, cer tain lease obligations contain “non-appropriation” clauses,","page_number":93,"box":{"x":70,"y":204,"width":809,"height":11}},{"id":"5c1f72c4-cc49-458e-8eca-df5cd5beae54","block_type":"box","text":"which provide that the issuer has no obligation to make lease or installment purchase payments in future years","page_number":93,"box":{"x":68,"y":218,"width":795,"height":12}},{"id":"b4c2626b-d8aa-4a32-9a15-47c5e65fc56c","block_type":"box","text":"unless money is appropriated for such purpose on a yearly basis. Although “non-appropriation” lease obligations are","page_number":93,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"1cf34f37-72a8-4712-bab5-89c7f826b483","block_type":"box","text":"secured by the leased proper ty, disposition of the proper ty in the event of foreclosure might prove difficult. These","page_number":93,"box":{"x":69,"y":249,"width":810,"height":11}},{"id":"06b69952-f636-43a9-84de-d6fb07084f7d","block_type":"box","text":"securities represent a type of financing that has not yet developed the depth of marketability associated with more","page_number":93,"box":{"x":69,"y":264,"width":817,"height":11}},{"id":"715b0888-c390-4bcd-a440-11ec11360aa4","block_type":"box","text":"conventional securities. Cer tain investments in lease obligations may be illiquid.","page_number":93,"box":{"x":69,"y":279,"width":572,"height":11}},{"id":"0aee08c0-b2fd-4957-af8a-c13b6c5fa919","block_type":"box","text":"The ability of issuers of municipal leases to make timely lease payments may be adversely impacted in general","page_number":93,"box":{"x":101,"y":302,"width":791,"height":11}},{"id":"5aae507f-5faa-4a49-adf4-72036aba3d7b","block_type":"box","text":"economic downturns and as relative governmental cost burdens are allocated and reallocated among federal, state","page_number":93,"box":{"x":69,"y":317,"width":822,"height":11}},{"id":"d630c49a-adf0-4e9c-98e3-0c0ad5246287","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":93,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"ee1e7dd3-0cb9-4ae8-8208-00f70934ff18","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":93,"box":{"x":69,"y":347,"width":798,"height":11}},{"id":"db53d151-efd6-4487-b964-c27705d98522","block_type":"box","text":"Fund. Issuers of municipal securities might seek protection under the bankruptcy laws. In the event of bankruptcy of","page_number":93,"box":{"x":70,"y":362,"width":828,"height":11}},{"id":"9a9da22d-6f59-4143-8c10-c5348878b9f1","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":93,"box":{"x":69,"y":377,"width":833,"height":11}},{"id":"771e4e4d-776a-482e-a88d-007f07fb2370","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":93,"box":{"x":69,"y":393,"width":807,"height":11}},{"id":"1475f3e7-4abb-4ac3-9b92-76856b6f8724","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":93,"box":{"x":68,"y":407,"width":835,"height":12}},{"id":"11a88920-c768-4573-a466-09f3c69af36f","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":93,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"3a8098ea-88c0-4aad-a735-20021bb66468","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":93,"box":{"x":69,"y":438,"width":829,"height":11}},{"id":"2c6d6970-9c43-4c5c-8efc-7c6f5d772b4e","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":93,"box":{"x":68,"y":453,"width":793,"height":11}},{"id":"a7538ac3-7417-4c40-88a2-526b18b035b7","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":93,"box":{"x":70,"y":468,"width":810,"height":11}},{"id":"38e2cf0a-f7fa-42f6-8ea0-e95464f05715","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":93,"box":{"x":70,"y":483,"width":820,"height":11}},{"id":"78d106c0-9931-4bff-8178-3505f4bc6bc6","block_type":"box","text":"exercise its rights by taking possession of such assets, because as a regulated investment company a Fund is","page_number":93,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"ddcce5a8-9065-42e8-9520-798c2dedd087","block_type":"box","text":"subject to cer tain limitations on its investments and on the nature of its income.","page_number":93,"box":{"x":69,"y":513,"width":574,"height":11}},{"id":"de236a4f-0180-4600-ae7d-0f1c090e697b","block_type":"box","text":"Tender Option Bonds.","page_number":93,"box":{"x":103,"y":536,"width":150,"height":11}},{"id":"b001b4e9-0cb3-4cc2-81dd-c17c7e153713","block_type":"box","text":"Cer tain Funds may invest in residual inverse floating rate interest tender option bonds","page_number":93,"box":{"x":260,"y":536,"width":613,"height":11}},{"id":"7e27e8a2-4a8b-4c4f-a51a-5670964d9849","block_type":"box","text":"(“TOB Residuals”), which are derivative interests in Municipal Bonds. The TOB Residuals in which the Funds will","page_number":93,"box":{"x":69,"y":551,"width":796,"height":11}},{"id":"b8712523-949b-4c48-833a-c26391e4abb8","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":93,"box":{"x":70,"y":566,"width":834,"height":11}},{"id":"ef92e9b3-aba0-4373-83fc-c4ca2ba37299","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":93,"box":{"x":68,"y":581,"width":807,"height":11}},{"id":"4795d3ab-9a7a-4fe0-8feb-01b8804b454a","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":93,"box":{"x":69,"y":596,"width":836,"height":12}},{"id":"53db442b-fa28-45a6-9e51-58bb8f506146","block_type":"box","text":"the potential for yields exceeding the yields available on fixed rate Municipal Bonds with comparable credit quality.","page_number":93,"box":{"x":68,"y":612,"width":814,"height":11}},{"id":"51ba4599-5003-48cf-a35a-208e8a978741","block_type":"box","text":"The Funds may invest in TOB Residuals for the purpose of using economic leverage.","page_number":93,"box":{"x":68,"y":627,"width":598,"height":11}},{"id":"23d9a0ee-03e4-470e-926e-b57743f7714c","block_type":"box","text":"TOB Residuals represent beneficial interests in a special purpose trust formed for the purpose of holding","page_number":93,"box":{"x":101,"y":649,"width":751,"height":12}},{"id":"7eaa1b43-3ad8-454a-9f8f-5503af6a6cac","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":93,"box":{"x":70,"y":664,"width":786,"height":12}},{"id":"aab1c866-1ed3-42ca-8b4e-b15aa1f53477","block_type":"box","text":"beneficial interests: shor t-term floating rate interests (“TOB Floaters”), which are sold to third-par ty investors, and","page_number":93,"box":{"x":69,"y":680,"width":813,"height":11}},{"id":"bd489ce1-b23b-4e1e-90c0-7b0a931a0b4b","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":93,"box":{"x":68,"y":695,"width":799,"height":11}},{"id":"7127893b-3fae-484f-9d2e-4652e6c800e1","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":93,"box":{"x":70,"y":710,"width":830,"height":11}},{"id":"aa5e64db-2213-4085-958f-7de5b8d4c5e6","block_type":"box","text":"the Municipal Bonds held by the TOB Trust and are enhanced with a liquidity suppor t arrangement from a third-par ty","page_number":93,"box":{"x":68,"y":725,"width":828,"height":11}},{"id":"68b77b6d-00ed-4b19-8dfa-8c3b8184715c","block_type":"box","text":"Liquidity Provider (defined below) which allows holders to tender their position at par (plus accrued interest). A Fund,","page_number":93,"box":{"x":70,"y":740,"width":826,"height":11}},{"id":"dd1cdbf2-13e0-4097-90e1-16ff4cd8bf44","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":93,"box":{"x":69,"y":755,"width":768,"height":11}},{"id":"50c8e3e4-e239-470e-a0f8-3158a0bf22fa","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":93,"box":{"x":70,"y":770,"width":825,"height":11}},{"id":"757dd6a1-2c86-4587-aa52-f02ad638e010","block_type":"box","text":"cer tain transaction costs, and typically will invest the cash to purchase additional Municipal Bonds or other","page_number":93,"box":{"x":69,"y":786,"width":764,"height":11}},{"id":"cac20a5d-2f79-4465-8b13-207b73a4966f","block_type":"box","text":"investments permitted by its investment policies. If a Fund ever purchases all or a por tion of the TOB Floaters sold by","page_number":93,"box":{"x":70,"y":801,"width":838,"height":11}},{"id":"bb022134-b1b4-4fbc-83e8-1cfce054bc96","block_type":"box","text":"the TOB Trust, it may surrender those TOB Floaters together with a propor tionate amount of TOB Residuals to the","page_number":93,"box":{"x":68,"y":816,"width":810,"height":11}},{"id":"3169fe0d-4a72-48b7-b6a9-9656c6848c07","block_type":"box","text":"TOB Trust in exchange for a propor tionate amount of the Municipal Bonds owned by the TOB Trust.","page_number":93,"box":{"x":68,"y":831,"width":704,"height":11}},{"id":"bfcefe83-72d8-4f6a-b1c9-fbb6e9d6e73b","block_type":"box","text":"Other BlackRock-advised funds may contribute Municipal Bonds to a TOB Trust into which a Fund has contributed","page_number":93,"box":{"x":102,"y":853,"width":804,"height":12}},{"id":"8bec6301-f8a2-428a-99eb-fb8782775a66","block_type":"box","text":"Municipal Bonds. If multiple BlackRock-advised funds par ticipate in the same TOB Trust, the economic rights and","page_number":93,"box":{"x":70,"y":869,"width":805,"height":11}},{"id":"ce62e4a5-c0d9-4fd1-947c-2d5afb295d25","block_type":"box","text":"obligations under the TOB Residual will generally be shared among the funds ratably in propor tion to their","page_number":93,"box":{"x":69,"y":884,"width":752,"height":11}},{"id":"1441371b-eb53-4f71-b4b3-713db56d8d84","block_type":"box","text":"par ticipation in the TOB Trust.","page_number":93,"box":{"x":70,"y":899,"width":211,"height":11}},{"id":"b5ab94c6-cb84-49d5-b175-69b867e5a35b","block_type":"box","text":"II-58","page_number":93,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"b889ed21-f0d4-4580-bae6-8a7ff8199fce","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":93,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"002eeecb-8b4c-4b15-89ee-e72922b387c1","block_type":"box","text":"The Municipal Bonds transferred to a TOB Trust typically are high grade Municipal Bonds. In cer tain cases, when","page_number":94,"box":{"x":101,"y":45,"width":802,"height":11}},{"id":"2e0e222c-a050-4aa9-a3d6-7f0c438102a9","block_type":"box","text":"Municipal Bonds transferred are lower grade Municipal Bonds, the TOB Trust transaction includes a credit","page_number":94,"box":{"x":70,"y":60,"width":753,"height":11}},{"id":"d2a652df-16a1-47fc-9405-7152b9297720","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":94,"box":{"x":69,"y":75,"width":829,"height":11}},{"id":"44658d82-08ea-4ab0-a4aa-ced7cf6a6069","block_type":"box","text":"a credit enhancement provider. The TOB Trust would be responsible for the payment of the credit enhancement fee","page_number":94,"box":{"x":69,"y":90,"width":819,"height":11}},{"id":"7cf26eb4-8d53-4064-a6f8-cb2d2f2783fe","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":94,"box":{"x":69,"y":105,"width":802,"height":11}},{"id":"bb9b841e-bf6d-4f7c-aae0-dc5037f0acda","block_type":"box","text":"interest made by the credit enhancement provider.","page_number":94,"box":{"x":70,"y":120,"width":357,"height":11}},{"id":"fe94baf0-829e-4049-9472-3ea01bfbda9e","block_type":"box","text":"The TOB Residuals held by a Fund generally provide the Fund with the right to cause the holders of a propor tional","page_number":94,"box":{"x":101,"y":143,"width":807,"height":11}},{"id":"2fe7c4e0-594a-4e57-bda1-657eeeb9c7b3","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":94,"box":{"x":69,"y":158,"width":810,"height":11}},{"id":"01b0a278-a360-4988-89c5-dad1becae5cc","block_type":"box","text":"may withdraw a corresponding share of the Municipal Bonds from the TOB Trust. This transaction, in effect, creates","page_number":94,"box":{"x":69,"y":173,"width":825,"height":11}},{"id":"5fcd317f-1840-44d7-b1f1-928f0c9e4f55","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":94,"box":{"x":69,"y":188,"width":834,"height":11}},{"id":"a805d3b5-d52b-477a-ae40-2772bb90894f","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":94,"box":{"x":70,"y":203,"width":797,"height":12}},{"id":"5a575eeb-90e6-468c-ac92-5aa0d4e1b7d3","block_type":"box","text":"impact of the Municipal Bonds’ return within the Fund (thereby creating leverage). The leverage within a TOB Trust","page_number":94,"box":{"x":70,"y":218,"width":809,"height":12}},{"id":"ca45cfbb-8b0d-406f-85cd-24de57f6faa1","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":94,"box":{"x":69,"y":234,"width":820,"height":11}},{"id":"6eea7a99-f169-4164-abf0-a653d4cf523e","block_type":"box","text":"issues.","page_number":94,"box":{"x":70,"y":249,"width":49,"height":9}},{"id":"e1c74d97-12f2-4ddd-9c9c-ad989b693cd7","block_type":"box","text":"A Fund may invest in highly leveraged TOB Residuals. A TOB Residual generally is considered highly leveraged if","page_number":94,"box":{"x":101,"y":271,"width":795,"height":12}},{"id":"51aef7a5-8f8e-4be4-a207-30f0872947bc","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":94,"box":{"x":68,"y":286,"width":833,"height":12}},{"id":"593afdc9-13db-4b61-b200-0eee47fe1ded","block_type":"box","text":"Municipal Bonds owned by the TOB Trust.","page_number":94,"box":{"x":70,"y":302,"width":293,"height":11}},{"id":"6cfb1b9f-2be9-433c-8e43-f31fae75fdb2","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":94,"box":{"x":101,"y":324,"width":802,"height":11}},{"id":"1c1c7097-67bb-4d8b-8fcc-ae10f0afc16a","block_type":"box","text":"events (“TOTEs”) and mandatory termination events (“MTEs”), as defined in the TOB Trust agreements. TOTEs","page_number":94,"box":{"x":69,"y":339,"width":788,"height":12}},{"id":"dd708651-a931-4fac-881e-04f7c08777e4","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":94,"box":{"x":70,"y":355,"width":836,"height":11}},{"id":"48138fd2-2cf2-4256-9559-83589de2f1a7","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":94,"box":{"x":70,"y":370,"width":819,"height":11}},{"id":"f0e30eeb-0ff3-49f3-bd27-281259b2cbf3","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":94,"box":{"x":70,"y":385,"width":833,"height":11}},{"id":"73ce283b-3949-4110-85ef-b1bcd17e75a0","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":94,"box":{"x":68,"y":400,"width":834,"height":11}},{"id":"2a220498-3012-47cd-879e-fe435c74fd45","block_type":"box","text":"inability of the TOB Trust to obtain renewal of the liquidity suppor t agreement, and a substantial decline in the market","page_number":94,"box":{"x":70,"y":415,"width":838,"height":11}},{"id":"534146e0-66c0-4518-b881-86dab9177b8a","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":94,"box":{"x":68,"y":430,"width":831,"height":11}},{"id":"f988f44b-0fbc-4d6f-9723-5828a8c24c72","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":94,"box":{"x":70,"y":445,"width":823,"height":12}},{"id":"71cb2b99-f154-4574-a4cf-0b858f586fff","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":94,"box":{"x":69,"y":460,"width":839,"height":12}},{"id":"e0f8381d-1abc-4638-b056-c24f16e9070a","block_type":"box","text":"the holders of the TOB Floaters would be paid senior to the TOB Residual holders (","page_number":94,"box":{"x":68,"y":475,"width":589,"height":12}},{"id":"498560e5-9125-4927-b05d-55224a6a50f1","block_type":"box","text":"i.e.","page_number":94,"box":{"x":659,"y":476,"width":21,"height":8}},{"id":"bb08073d-6673-4fa2-9efa-bb6947a3375f","block_type":"box","text":", the Fund). In contrast, in the","page_number":94,"box":{"x":682,"y":476,"width":211,"height":11}},{"id":"d2cbde5c-f968-469d-b6ba-77555878ebfb","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":94,"box":{"x":69,"y":491,"width":822,"height":11}},{"id":"0ebeb4f4-318a-40ac-afbe-53ef9ee58a98","block_type":"box","text":"rata in propor tion to the respective face values of their cer tificates.","page_number":94,"box":{"x":69,"y":506,"width":479,"height":11}},{"id":"c344f958-8045-4522-9aa8-f0b65fe0dea9","block_type":"box","text":"A Fund may invest in a TOB Trust on either a non-recourse or recourse basis. TOB Trusts are typically suppor ted","page_number":94,"box":{"x":101,"y":529,"width":797,"height":11}},{"id":"a775cfb0-8a1b-4743-b655-569cf0e8c893","block_type":"box","text":"by a liquidity facility provided by a third-par ty bank or other financial institution (the “Liquidity Provider”) that allows","page_number":94,"box":{"x":69,"y":543,"width":815,"height":12}},{"id":"93308abb-9c9a-40de-815a-304c867587b3","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":94,"box":{"x":68,"y":559,"width":828,"height":11}},{"id":"f719246c-674a-4bc7-8f51-7523ba2f6b98","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":94,"box":{"x":69,"y":574,"width":828,"height":11}},{"id":"e9f3127e-3dc1-441f-8fe8-4712018848c3","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":94,"box":{"x":68,"y":589,"width":815,"height":11}},{"id":"70ddf70a-7b85-4e92-aa70-dea3e6f99096","block_type":"box","text":"the Liquidity Provider to purchase the tendered TOB Floaters.","page_number":94,"box":{"x":68,"y":604,"width":434,"height":11}},{"id":"3bd64c53-3f50-44f1-b33a-0e626b42a168","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":94,"box":{"x":101,"y":627,"width":772,"height":11}},{"id":"8f2f4f8e-4b47-436b-8d3a-d0a67f63c8c1","block_type":"box","text":"payment under the liquidity facility, the Liquidity Provider will typically liquidate all or a por tion of the Municipal Bonds","page_number":94,"box":{"x":70,"y":642,"width":831,"height":11}},{"id":"f2e1394f-04ec-443d-865e-cb9144b26a99","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":94,"box":{"x":69,"y":657,"width":785,"height":11}},{"id":"40538a8a-63ab-4368-b759-084aad95731a","block_type":"box","text":"liquidation proceeds (the “Liquidation Shor tfall”). If a Fund invests in a TOB Trust on a recourse basis, it will typically","page_number":94,"box":{"x":70,"y":672,"width":831,"height":11}},{"id":"283d56e2-1fa1-4739-ac60-0549cd029b2b","block_type":"box","text":"enter into a reimbursement agreement with the Liquidity Provider pursuant to which the Fund is required to reimburse","page_number":94,"box":{"x":69,"y":687,"width":836,"height":11}},{"id":"d76589e2-69b2-49b5-91c6-c8626d10a3b8","block_type":"box","text":"the Liquidity Provider the amount of any Liquidation Shor tfall. As a result, if the Fund invests in a recourse TOB Trust,","page_number":94,"box":{"x":68,"y":702,"width":836,"height":11}},{"id":"809e3884-1af5-439f-9f09-c32455e479a6","block_type":"box","text":"the Fund will bear the risk of loss with respect to any Liquidation Shor tfall. If multiple BlackRock-advised funds","page_number":94,"box":{"x":68,"y":717,"width":788,"height":12}},{"id":"36863707-e7a8-447f-b792-489aa82a2880","block_type":"box","text":"par ticipate in any such TOB Trust, these losses will be shared ratably, in propor tion to their par ticipation in the TOB","page_number":94,"box":{"x":70,"y":733,"width":823,"height":11}},{"id":"a20a23bf-dfa7-4c3c-b44a-565c140f190a","block_type":"box","text":"Trust.","page_number":94,"box":{"x":68,"y":748,"width":39,"height":9}},{"id":"0e1466eb-2428-49dc-90a9-e90f062d4873","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":94,"box":{"x":102,"y":770,"width":784,"height":12}},{"id":"14237095-62ad-465c-bb78-b9acb3cc1e6c","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":94,"box":{"x":70,"y":785,"width":830,"height":12}},{"id":"316941eb-4604-4b62-b646-420298f732d5","block_type":"box","text":"are presented as liabilities in the Fund’s Statement of Assets and Liabilities. Interest income from the underlying","page_number":94,"box":{"x":69,"y":801,"width":806,"height":11}},{"id":"b190cb4f-32d8-4eac-8bce-58cc0ce6ae2a","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":94,"box":{"x":70,"y":816,"width":831,"height":11}},{"id":"9a4e3956-e1bb-49c9-82e0-f0207c785bfa","block_type":"box","text":"expenses related to remarketing, administration, trustee and other services to a TOB Trust are repor ted as expenses","page_number":94,"box":{"x":69,"y":831,"width":837,"height":11}},{"id":"10233f76-0017-493e-9e6f-2cfceb09f48a","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":94,"box":{"x":69,"y":846,"width":832,"height":11}},{"id":"ed448fcf-d075-4a15-b331-7b4f6ae2683e","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":94,"box":{"x":70,"y":861,"width":728,"height":9}},{"id":"7fb75055-8353-481c-929c-34bc39e8b713","block_type":"box","text":"For TOB Floaters, generally, the interest rate earned will be based upon the market rates for Municipal Bonds","page_number":94,"box":{"x":102,"y":884,"width":776,"height":11}},{"id":"6dd65f98-ce5b-4a04-a802-7afe15a3b0bd","block_type":"box","text":"with maturities or remarketing provisions that are comparable in duration to the periodic interval of the tender option.","page_number":94,"box":{"x":68,"y":899,"width":837,"height":11}},{"id":"1d5df315-39c4-4bff-8de8-5826d3000fdb","block_type":"box","text":"II-59","page_number":94,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"0a66d456-0ab2-4b30-bfc9-e31b574ca6f4","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":94,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"432264c7-fe2b-4528-b0a9-b320b79c488f","block_type":"box","text":"Since the tender option feature has a shor ter term than the final maturity or first call date of the underlying Municipal","page_number":95,"box":{"x":69,"y":45,"width":836,"height":11}},{"id":"0c09a0f9-e754-4950-9131-28cdf9fb9b1a","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":95,"box":{"x":70,"y":60,"width":809,"height":11}},{"id":"fa70530c-58df-4f80-b403-5b685fba5f3b","block_type":"box","text":"financial institution furnishing the liquidity facility as well as the credit strength of that institution. The risk associated","page_number":95,"box":{"x":68,"y":75,"width":836,"height":11}},{"id":"30cddad2-8f07-4bed-a48e-89ae3507ea96","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":95,"box":{"x":68,"y":90,"width":835,"height":11}},{"id":"f64e10a7-4317-44d5-8991-436dd936de07","block_type":"box","text":"the credit ratings, and thus the perceived reliability and creditwor thiness, of many major financial institutions, some","page_number":95,"box":{"x":68,"y":105,"width":827,"height":11}},{"id":"82382db3-8ccd-45f3-8fc4-80e491fa7fc0","block_type":"box","text":"of which sponsor and/or provide liquidity suppor t to TOB Trusts. This in turn may reduce the desirability of TOB","page_number":95,"box":{"x":69,"y":120,"width":790,"height":11}},{"id":"cc62f0d8-b2bf-4083-b419-39c6334c6aed","block_type":"box","text":"Floaters as investments, which could impair the viability or availability of TOB Trusts.","page_number":95,"box":{"x":70,"y":135,"width":599,"height":11}},{"id":"860b3f62-621b-4eb6-8b09-93da28717321","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into TOB Trust transactions, reverse","page_number":95,"box":{"x":102,"y":158,"width":762,"height":11}},{"id":"c8d4aed2-ce79-4214-9582-3b555d9d6b06","block_type":"box","text":"repurchase agreements and similar financing transactions (e.g., borrowed bonds) notwithstanding the limitation on","page_number":95,"box":{"x":69,"y":173,"width":818,"height":11}},{"id":"b7d47213-b057-46d1-ad69-8000aa144b30","block_type":"box","text":"the issuance of senior securities in Section 18 of the Investment Company Act, provided that the Fund either","page_number":95,"box":{"x":68,"y":188,"width":778,"height":11}},{"id":"eeafb096-f3bf-43ae-95c4-134353409be5","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":95,"box":{"x":69,"y":203,"width":811,"height":12}},{"id":"b4b45b08-3094-4228-80c4-ef112e520b54","block_type":"box","text":"aggregate, or (ii) treats such transactions as Derivatives Transactions under Rule 18f-4. See “—Derivatives —","page_number":95,"box":{"x":69,"y":218,"width":786,"height":12}},{"id":"18b6e23a-7df8-49d9-9280-ea015ed98725","block_type":"box","text":"Regulation of Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":95,"box":{"x":70,"y":234,"width":588,"height":11}},{"id":"a3636333-fa81-4dbb-9faf-87a352a13da6","block_type":"box","text":"Developments in the TOB Trust Market.","page_number":95,"box":{"x":102,"y":256,"width":279,"height":11}},{"id":"66ae2540-6679-433e-afe1-c7f34471c80e","block_type":"box","text":"In response to the restrictions imposed by section 619 of the Dodd-Frank Wall Street Reform and Consumer","page_number":95,"box":{"x":102,"y":279,"width":771,"height":11}},{"id":"d2354abc-e0ad-451a-ba15-87d3deddaf32","block_type":"box","text":"Protection Act (the “Volcker Rule”), market par ticipants have developed a structure for TOB Trusts designed to","page_number":95,"box":{"x":69,"y":294,"width":786,"height":11}},{"id":"f00da18f-4b7e-40d7-a0bf-9ff13aa35335","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":95,"box":{"x":69,"y":309,"width":816,"height":11}},{"id":"a1569178-6a56-4f4c-ae1d-cc6d3c39a4d7","block_type":"box","text":"establish, structure and “sponsor” the TOB Trusts in which it holds TOB Residuals. In such a structure, cer tain","page_number":95,"box":{"x":69,"y":324,"width":791,"height":11}},{"id":"3c7c24db-59b4-478a-bcd1-24e7d055d7ab","block_type":"box","text":"responsibilities that previously belonged to the sponsor bank will be per formed by, or on behalf of, a Fund. A Fund","page_number":95,"box":{"x":69,"y":339,"width":812,"height":12}},{"id":"05484988-90d1-4046-9226-d914cf791eef","block_type":"box","text":"may utilize service providers in meeting these responsibilities. It is possible that regulators could take positions that","page_number":95,"box":{"x":69,"y":355,"width":832,"height":11}},{"id":"8db52bf4-cac8-46eb-b0bf-a50432b56094","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":95,"box":{"x":69,"y":370,"width":810,"height":11}},{"id":"84199719-b97a-433c-b442-94d0ff556d7f","block_type":"box","text":"this TOB Trust structure, a Fund has cer tain additional duties and responsibilities, which may give rise to cer tain","page_number":95,"box":{"x":68,"y":385,"width":803,"height":11}},{"id":"97ed3bc9-2da7-4d40-975a-2e8437f7bc37","block_type":"box","text":"additional risks including, but not limited to, compliance, securities law and operational risks.","page_number":95,"box":{"x":69,"y":400,"width":665,"height":11}},{"id":"5018ea55-7d0d-4611-834a-a922c8a9f26b","block_type":"box","text":"Under this structure, service providers to a TOB Trust, such as administrators, liquidity providers, trustees, and","page_number":95,"box":{"x":102,"y":423,"width":793,"height":11}},{"id":"e3e82049-a6fa-4538-8296-6d2471dfbe92","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":95,"box":{"x":69,"y":438,"width":783,"height":11}},{"id":"10716560-bdaa-4079-bade-5b86b269235d","block_type":"box","text":"traditional tender option bond structure, a Fund deposits Municipal Bonds into the TOB Trust in exchange for TOB","page_number":95,"box":{"x":68,"y":453,"width":808,"height":11}},{"id":"af53357e-6f58-44c6-8126-b4d25719a7d4","block_type":"box","text":"Residuals, the TOB Trust then issues and sells TOB Floaters to third-par ty investors, and the proceeds of the sale of","page_number":95,"box":{"x":70,"y":468,"width":830,"height":11}},{"id":"721d72be-03e3-4114-9c84-505478ec58e9","block_type":"box","text":"the TOB Floaters is distributed to such TOB Residual holders (","page_number":95,"box":{"x":68,"y":483,"width":442,"height":11}},{"id":"47a3e11b-3529-4cda-bb42-640c14dae3fe","block_type":"box","text":"i.e.","page_number":95,"box":{"x":512,"y":483,"width":20,"height":9}},{"id":"35def010-7973-42e9-9036-0c9aa96eb673","block_type":"box","text":", the Fund). Tendered TOB Floaters continue to be","page_number":95,"box":{"x":535,"y":483,"width":352,"height":11}},{"id":"5b29f478-df77-4c88-be7a-d3b927952d31","block_type":"box","text":"suppor ted by a remarketing agent and a liquidity facility. However, the remarketing agent does not purchase tendered","page_number":95,"box":{"x":69,"y":498,"width":836,"height":11}},{"id":"e7e1ad30-f4c9-47b2-8b9d-3497ca518bfa","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":95,"box":{"x":68,"y":513,"width":816,"height":12}},{"id":"904c5608-a6ff-46b2-9f07-ab82cc9f3e5b","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":95,"box":{"x":68,"y":528,"width":835,"height":11}},{"id":"7ff23702-7f43-4b72-990e-32bac985531f","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":95,"box":{"x":69,"y":543,"width":822,"height":12}},{"id":"6ee418a1-c9d2-4d7d-8066-ea2cc90c3d4d","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":95,"box":{"x":69,"y":559,"width":777,"height":11}},{"id":"d387aa45-b137-48c9-a19a-49887bba3c54","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":95,"box":{"x":69,"y":574,"width":800,"height":11}},{"id":"9dffa862-b576-4bdc-b428-0d0f21ea44ed","block_type":"box","text":"made by a Liquidity Provider will be secured by the purchased TOB Floaters held by the TOB Trust.","page_number":95,"box":{"x":69,"y":589,"width":696,"height":11}},{"id":"fff6d4a2-74b3-4b27-b547-dcc562b70b30","block_type":"box","text":"Similar to the traditional structure for TOB Trusts, a Fund may hold either non-recourse TOB Residuals or","page_number":95,"box":{"x":102,"y":612,"width":745,"height":11}},{"id":"2088fbc5-5e2c-41b7-8dca-99a1113af40d","block_type":"box","text":"recourse TOB Residuals under this structure. In the event of a Liquidation Shor tfall, there would generally be no","page_number":95,"box":{"x":69,"y":627,"width":797,"height":11}},{"id":"700c0497-f104-49cc-b34a-c2e9d75fc68b","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":95,"box":{"x":69,"y":642,"width":803,"height":10}},{"id":"fc2bcf0c-e847-4114-85a1-fac1d5213e93","block_type":"box","text":"above, a Fund would bear the risk of loss with respect to any Liquidation Shor tfall if it holds a recourse TOB Residual.","page_number":95,"box":{"x":69,"y":657,"width":838,"height":11}},{"id":"82b349dd-c8c6-402c-af79-d10422c47071","block_type":"box","text":"The SEC and various federal banking and housing agencies adopted credit risk retention rules for securitizations","page_number":95,"box":{"x":101,"y":680,"width":801,"height":11}},{"id":"bf97181e-c545-4839-9f64-d62c64a71fd6","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":95,"box":{"x":69,"y":695,"width":838,"height":11}},{"id":"d7cb1bd6-5de6-4921-99e4-ee4199c9ec04","block_type":"box","text":"TOB Trust to retain at least 5% of the credit risk of the underlying assets suppor ting the TOB Trust’s Municipal","page_number":95,"box":{"x":68,"y":710,"width":787,"height":11}},{"id":"bb2bf7cc-a76a-4864-852e-a4947fdfd240","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":95,"box":{"x":70,"y":725,"width":791,"height":11}},{"id":"d55ab32e-a0e4-4c90-9f27-ec0be9d7c5c1","block_type":"box","text":"increase the costs of such transactions in cer tain circumstances.","page_number":95,"box":{"x":70,"y":740,"width":466,"height":9}},{"id":"d05638c7-8c1e-447b-b985-d0ef454e736b","block_type":"box","text":"TOB Trust transactions constitute an impor tant component of the municipal bond market. Accordingly,","page_number":95,"box":{"x":101,"y":763,"width":726,"height":11}},{"id":"906b758c-1069-48c9-83ca-cc6a4c07d1ba","block_type":"box","text":"implementation of the Volcker Rule may adversely impact the municipal market, including through reduced demand","page_number":95,"box":{"x":70,"y":778,"width":816,"height":11}},{"id":"e39d211c-5f4c-4fa8-b9df-54fccb0db559","block_type":"box","text":"for and liquidity of municipal bonds and increased financing costs for municipal issuers. Any such developments","page_number":95,"box":{"x":68,"y":793,"width":799,"height":11}},{"id":"648a4ea1-f98b-48cc-bb3d-069607dd6c8e","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":95,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"7f91a7e9-98b8-491d-a640-2bec435c29c7","block_type":"box","text":"market is not yet cer tain.","page_number":95,"box":{"x":69,"y":823,"width":178,"height":11}},{"id":"5c04faab-fbb3-4c9c-aeb9-d90b833339b6","block_type":"box","text":"Yields.","page_number":95,"box":{"x":103,"y":846,"width":45,"height":9}},{"id":"f6256237-570b-472a-8b01-b9916c536083","block_type":"box","text":"Yields on Municipal Bonds are dependent on a variety of factors, including the general condition of the","page_number":95,"box":{"x":154,"y":846,"width":730,"height":11}},{"id":"8ddd548b-8fbe-4c31-82e3-177e22fb0272","block_type":"box","text":"money market and of the municipal bond market, the size of a par ticular offering, the financial condition of the","page_number":95,"box":{"x":69,"y":861,"width":788,"height":11}},{"id":"ee7edc69-b40a-48e7-8b20-45d15ca630ce","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":95,"box":{"x":70,"y":876,"width":787,"height":11}},{"id":"580f99e9-389d-4d91-a2d5-62094170d896","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":95,"box":{"x":69,"y":891,"width":838,"height":12}},{"id":"3a4a1add-b49b-4e91-aa24-926c1ad447f8","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":95,"box":{"x":68,"y":906,"width":794,"height":12}},{"id":"0d050aed-13b2-4382-b5ee-b318d3fa34be","block_type":"box","text":"II-60","page_number":95,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"0c925f44-0451-4b33-80c4-ce03b19e3979","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":95,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4b4bf18b-c0a4-4bf6-8da7-807f66084356","block_type":"box","text":"holding Municipal Bonds, both within a par ticular classification and between classifications, depending on numerous","page_number":96,"box":{"x":69,"y":45,"width":831,"height":11}},{"id":"7552f696-d229-46ff-bf49-9c3e8da6f0ad","block_type":"box","text":"factors. Fur thermore, the rights of owners of Municipal Bonds and the obligations of the issuer of such Municipal","page_number":96,"box":{"x":68,"y":60,"width":806,"height":11}},{"id":"d2eded73-1739-420e-b357-4735887d7794","block_type":"box","text":"Bonds may be subject to applicable bankruptcy, insolvency and similar laws and cour t decisions affecting the rights","page_number":96,"box":{"x":70,"y":75,"width":823,"height":11}},{"id":"702e0c56-e62e-4bc6-8716-a235904253cf","block_type":"box","text":"of creditors generally and to general equitable principles, which may limit the enforcement of cer tain remedies.","page_number":96,"box":{"x":69,"y":90,"width":790,"height":11}},{"id":"e93faf85-4747-4313-b569-4969d9251a01","block_type":"box","text":"Variable Rate Demand Obligations (“VRDOs”).","page_number":96,"box":{"x":103,"y":113,"width":323,"height":11}},{"id":"66161b8a-6ca2-40cb-ae8a-49516884d16e","block_type":"box","text":"VRDOs are tax-exempt obligations that contain a floating or","page_number":96,"box":{"x":432,"y":113,"width":422,"height":11}},{"id":"474fec3e-6f63-4fee-8148-d6c46f140164","block_type":"box","text":"variable interest rate adjustment formula and a right of demand on the par t of the holder thereof to receive payment","page_number":96,"box":{"x":68,"y":128,"width":830,"height":11}},{"id":"19a694da-9a96-4b17-8ab2-8ae73a19ca20","block_type":"box","text":"of the unpaid principal balance plus accrued interest upon a shor t notice period not to exceed seven days.","page_number":96,"box":{"x":69,"y":143,"width":759,"height":11}},{"id":"e808f86c-d6c6-4874-a71b-93a5d5f24e29","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":96,"box":{"x":101,"y":166,"width":798,"height":11}},{"id":"29659fc1-5234-491e-b476-7bce59eaf6fb","block_type":"box","text":"The interest rates are adjustable at periodic intervals to some prevailing market rate for similar investments, such","page_number":96,"box":{"x":68,"y":181,"width":815,"height":11}},{"id":"b9762b74-8fef-436a-bc5e-9b2848eb8ec7","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":96,"box":{"x":69,"y":196,"width":826,"height":11}},{"id":"56179dfc-fa97-48ce-b600-26a9364caee9","block_type":"box","text":"VRDOs on the adjustment date. The adjustments typically are based upon the Securities Industry and Financial","page_number":96,"box":{"x":68,"y":211,"width":791,"height":11}},{"id":"f36a8a3b-ae19-4749-b716-9172d2920177","block_type":"box","text":"Markets Association (“SIFMA”) Index.","page_number":96,"box":{"x":70,"y":226,"width":264,"height":11}},{"id":"14334f0e-1a8f-4e30-805d-6be83a044830","block_type":"box","text":"Because of the interest rate adjustment formula on VRDOs, VRDOs are not comparable to fixed rate securities.","page_number":96,"box":{"x":102,"y":249,"width":791,"height":11}},{"id":"898537cd-234f-40b0-8782-30eb3070c00f","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":96,"box":{"x":70,"y":264,"width":833,"height":11}},{"id":"c2ad7f7e-02a0-49a2-bf1d-38a6d653bbf3","block_type":"box","text":"oppor tunity for capital appreciation. During periods of rising interest rates, however, a Fund’s yield on a VRDO will","page_number":96,"box":{"x":69,"y":279,"width":808,"height":11}},{"id":"a82c5d6c-542c-432c-8f4c-d1e2f3238d7c","block_type":"box","text":"increase and the Fund’s shareholders will have a reduced risk of capital depreciation.","page_number":96,"box":{"x":70,"y":294,"width":608,"height":11}},{"id":"893edcce-de8d-42f5-b471-668658267ef5","block_type":"box","text":"Transactions in Financial Futures Contracts on Municipal Indexes.","page_number":96,"box":{"x":103,"y":317,"width":465,"height":11}},{"id":"5dd8a638-47c3-4ac9-ba29-5ac5986725e3","block_type":"box","text":"The Municipal Funds and cer tain other funds","page_number":96,"box":{"x":574,"y":317,"width":318,"height":11}},{"id":"0a1bfaab-0646-48fa-a786-2f5f5c725f81","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":96,"box":{"x":69,"y":332,"width":803,"height":11}},{"id":"b7164126-6655-4967-95c0-6c032ac3f2a0","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":96,"box":{"x":68,"y":347,"width":825,"height":11}},{"id":"8274174c-7024-4f32-b24c-b7310e0c3614","block_type":"box","text":"term, actively traded tax-exempt municipal revenue and general obligation bonds. Each bond included in the Municipal","page_number":96,"box":{"x":68,"y":362,"width":840,"height":11}},{"id":"2f29dfce-2bbe-4000-9895-eaa332e12ac6","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":96,"box":{"x":70,"y":377,"width":815,"height":12}},{"id":"62c1458e-1108-4ff6-88e3-8a87263b0806","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":96,"box":{"x":68,"y":392,"width":836,"height":12}},{"id":"bf15a83c-1877-4110-bdb8-720225e185cc","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":96,"box":{"x":69,"y":407,"width":796,"height":12}},{"id":"4dfffb31-8bc2-4008-9615-5f39c6744442","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":96,"box":{"x":68,"y":423,"width":816,"height":11}},{"id":"372330fb-8b5f-45d8-969c-4f8c823efa04","block_type":"box","text":"The Municipal Bond Index futures contract is traded only on the CBT. Like other contract markets, the CBT","page_number":96,"box":{"x":101,"y":445,"width":756,"height":11}},{"id":"55363fda-f3a5-498f-bb83-5d88ec424ae6","block_type":"box","text":"assures per formance under futures contracts through a clearing corporation, a nonprofit organization managed by the","page_number":96,"box":{"x":69,"y":460,"width":839,"height":12}},{"id":"6562b50e-2f6c-42cc-8a2c-bf9c5d0e3ac3","block_type":"box","text":"exchange membership that is also responsible for handling daily accounting of deposits or withdrawals of margin.","page_number":96,"box":{"x":69,"y":475,"width":808,"height":12}},{"id":"76923bb9-d1ea-46bd-a048-bb7431269388","block_type":"box","text":"The par ticular municipal bonds comprising the index underlying the Municipal Bond Index financial futures","page_number":96,"box":{"x":101,"y":498,"width":753,"height":11}},{"id":"2fd7df1d-032d-4608-af85-04544f3caaf7","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":96,"box":{"x":69,"y":513,"width":764,"height":12}},{"id":"ed4e01fc-48ae-4101-9d0b-bfea0422e088","block_type":"box","text":"effectively all or a por tion of the value of its Municipal Bonds through the use of such financial futures contracts will","page_number":96,"box":{"x":69,"y":528,"width":826,"height":12}},{"id":"22df068d-3ef8-4c9e-b343-ec0604be7734","block_type":"box","text":"depend in par t on the degree to which price movements in the index underlying the financial futures contract","page_number":96,"box":{"x":69,"y":543,"width":774,"height":12}},{"id":"e3af77f5-0373-45e4-b20b-8c673375093b","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":96,"box":{"x":69,"y":559,"width":801,"height":11}},{"id":"64645587-e355-4a29-ac0f-7e797222115d","block_type":"box","text":"disparities in the average maturity, ratings, geographical mix or structure of a Municipal Fund’s investments as","page_number":96,"box":{"x":69,"y":574,"width":788,"height":11}},{"id":"0feba63b-65d0-41b3-8616-16c70e76d7fb","block_type":"box","text":"compared to those comprising the Municipal Bond Index and general economic or political factors. In addition, the","page_number":96,"box":{"x":69,"y":589,"width":812,"height":11}},{"id":"9ebd0d77-fca9-480d-90a8-aeab420f9c35","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":96,"box":{"x":69,"y":604,"width":799,"height":11}},{"id":"0b4835f8-a00d-45d2-9a6d-c1cb514cd35a","block_type":"box","text":"additions to and deletions from the Municipal Bond Index alter its structure. The correlation between futures","page_number":96,"box":{"x":69,"y":619,"width":772,"height":11}},{"id":"552a6448-20ec-478a-a315-401131aa7428","block_type":"box","text":"contracts on U.S. Government Securities and the Municipal Bonds held by a Municipal Fund may be adversely","page_number":96,"box":{"x":69,"y":634,"width":782,"height":11}},{"id":"07b0909a-1ab8-4de9-b3a7-ec1bf2932f4f","block_type":"box","text":"affected by similar factors and the risk of imper fect correlation between movements in the prices of such futures","page_number":96,"box":{"x":69,"y":649,"width":806,"height":12}},{"id":"7da50f5c-eddc-463f-9a1a-3393139eb83e","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":96,"box":{"x":69,"y":664,"width":823,"height":12}},{"id":"43e94d25-4ded-4937-adaf-3e97ab47d7cf","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":96,"box":{"x":69,"y":680,"width":837,"height":11}},{"id":"d4a0f284-550b-4c1f-999b-77844ebb6496","block_type":"box","text":"in other futures contracts. The trading of futures contracts also is subject to cer tain market risks, such as inadequate","page_number":96,"box":{"x":70,"y":695,"width":839,"height":11}},{"id":"9173eb0f-5f10-4e6a-a497-72f8ad923718","block_type":"box","text":"trading activity, which could at times make it difficult or impossible to liquidate existing positions.","page_number":96,"box":{"x":68,"y":710,"width":693,"height":11}},{"id":"21431055-e845-4c5c-83d0-9d1923e38737","block_type":"box","text":"Call Rights.","page_number":96,"box":{"x":102,"y":733,"width":79,"height":11}},{"id":"493fd074-a9fb-44bb-875d-e6fe32c0d9fd","block_type":"box","text":"A Fund may purchase a Municipal Bond issuer’s right to call all or a por tion of such Municipal Bond","page_number":96,"box":{"x":187,"y":732,"width":708,"height":12}},{"id":"0dd07b07-55d3-48bc-98ed-96079b60b729","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":96,"box":{"x":68,"y":748,"width":790,"height":11}},{"id":"85367a4f-f530-40d2-b87d-27c0ed3b1dde","block_type":"box","text":"mandatory tender for the purchase of related Municipal Bonds, subject to cer tain conditions. A Call Right that is not","page_number":96,"box":{"x":69,"y":763,"width":827,"height":11}},{"id":"952d565f-1a14-4521-bb53-8b41cd2f00e1","block_type":"box","text":"exercised prior to maturity of the related Municipal Bond will expire without value. The economic effect of holding","page_number":96,"box":{"x":69,"y":778,"width":805,"height":11}},{"id":"6cce1e63-0ebd-4d7a-83c5-0148e2e78bc9","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":96,"box":{"x":69,"y":793,"width":833,"height":11}},{"id":"85772951-09d0-4330-864b-54e48e8218ba","block_type":"box","text":"Cer tain investments in such obligations may be illiquid.","page_number":96,"box":{"x":69,"y":808,"width":393,"height":11}},{"id":"d0370a90-8df0-4be6-98b3-c24a7a40429e","block_type":"box","text":"Municipal Interest Rate Swap Transactions.","page_number":96,"box":{"x":102,"y":831,"width":307,"height":11}},{"id":"4ca3798a-7805-45e8-a811-8aee9e2a3079","block_type":"box","text":"In order to hedge the value of a Fund against interest rate","page_number":96,"box":{"x":417,"y":831,"width":411,"height":11}},{"id":"24acafee-67e9-49fd-a2e6-69863d2a5fee","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":96,"box":{"x":68,"y":846,"width":835,"height":11}},{"id":"d4e26d52-1fd0-4a61-b6ed-a0096e6d903a","block_type":"box","text":"Market Data AAA Cash Curve swaps (“MMD Swaps”) or Securities Industry and Financial Markets Association","page_number":96,"box":{"x":70,"y":861,"width":781,"height":11}},{"id":"55cbd3fc-8ea3-4b01-a4f0-ee801ebc04c2","block_type":"box","text":"Municipal Swap Index swaps (“SIFMA Swaps”). To the extent that a Fund enters into these transactions, the Fund","page_number":96,"box":{"x":70,"y":876,"width":808,"height":11}},{"id":"9434a138-adb9-4f2e-819d-c4b81cada81a","block_type":"box","text":"expects to do so primarily to preserve a return or spread on a par ticular investment or por tion of its por tfolio or to","page_number":96,"box":{"x":69,"y":891,"width":814,"height":11}},{"id":"2d1a84d7-0be8-438a-9fb7-f5bf784b2be0","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":96,"box":{"x":70,"y":906,"width":832,"height":12}},{"id":"1821cb71-5196-482c-8d55-b6341206e41c","block_type":"box","text":"II-61","page_number":96,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"20524214-557a-4273-b9ee-40aa5cc41e50","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":96,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"380d085f-6421-494b-93a5-3890f0cced6e","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":97,"box":{"x":68,"y":45,"width":817,"height":11}},{"id":"ad0a4832-05f5-435e-b78a-e958ed0c9a6a","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":97,"box":{"x":70,"y":60,"width":797,"height":11}},{"id":"ca207e93-dc1f-46ab-bb5d-97bc32893671","block_type":"box","text":"during periods of steep interest rate yield curves (","page_number":97,"box":{"x":69,"y":75,"width":356,"height":11}},{"id":"e817ac11-f201-4865-b881-caac3edeedf7","block_type":"box","text":"i.e.","page_number":97,"box":{"x":427,"y":75,"width":20,"height":9}},{"id":"98072542-b9c2-42c8-adb1-6ccb65430f43","block_type":"box","text":", wide differences between shor t-term and long-term interest","page_number":97,"box":{"x":449,"y":75,"width":433,"height":11}},{"id":"d2b17a80-a808-4f99-b084-5ed2b9ee4516","block_type":"box","text":"rates).","page_number":97,"box":{"x":69,"y":90,"width":44,"height":11}},{"id":"34d7874a-47ac-421b-9301-5911335a30f2","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":97,"box":{"x":101,"y":113,"width":807,"height":11}},{"id":"09b5773d-7849-4628-837b-f374fbd9ba71","block_type":"box","text":"another par ty their respective commitments to pay or receive interest (","page_number":97,"box":{"x":69,"y":128,"width":503,"height":11}},{"id":"934a9908-9758-4956-9279-e865d2d52f5d","block_type":"box","text":"e.g.","page_number":97,"box":{"x":574,"y":129,"width":25,"height":10}},{"id":"6d1e2243-fbc9-4ae2-9851-8dcae67a073b","block_type":"box","text":", an exchange of fixed rate payments for","page_number":97,"box":{"x":601,"y":128,"width":286,"height":11}},{"id":"61f1c3a8-a55e-453a-a395-af7e3d181503","block_type":"box","text":"floating rate payments linked to the SIFMA Municipal Swap Index). Because the underlying index is a tax-exempt","page_number":97,"box":{"x":68,"y":143,"width":798,"height":11}},{"id":"1046934d-db50-4960-b45a-9a31878d522a","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":97,"box":{"x":70,"y":158,"width":778,"height":11}},{"id":"23ba5cd8-539e-4b0d-8bd1-bb90ad4809ca","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":97,"box":{"x":69,"y":173,"width":833,"height":11}},{"id":"61afcba5-34aa-41ad-b394-8196480eb8ad","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":97,"box":{"x":69,"y":188,"width":823,"height":11}},{"id":"66357f5f-ef5a-4821-a044-32360eb7921b","block_type":"box","text":"with the same attributes as the swap (","page_number":97,"box":{"x":68,"y":204,"width":275,"height":10}},{"id":"9e09178c-3ca0-476b-ac7f-2db1c3dc7f6a","block_type":"box","text":"e.g.","page_number":97,"box":{"x":345,"y":205,"width":24,"height":10}},{"id":"a696fe60-140d-4fc5-a209-13d85297a51c","block_type":"box","text":", coupon, maturity, call feature).","page_number":97,"box":{"x":372,"y":203,"width":224,"height":12}},{"id":"9b98b2f3-e68b-443b-baa8-3a08d0f30aaf","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":97,"box":{"x":101,"y":226,"width":797,"height":11}},{"id":"b19b2832-0220-40df-a5f6-4edbc741f44f","block_type":"box","text":"to lock in a specified municipal interest rate for a por tion of its por tfolio to preserve a return on a par ticular","page_number":97,"box":{"x":68,"y":241,"width":770,"height":11}},{"id":"9606c957-aa80-44d0-bf69-4e38c4d8af98","block_type":"box","text":"investment or a por tion of its por tfolio as a duration management technique or to protect against any increase in the","page_number":97,"box":{"x":70,"y":256,"width":832,"height":12}},{"id":"91c96d3b-7359-4345-91df-d62b0a67d8ef","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":97,"box":{"x":70,"y":271,"width":805,"height":12}},{"id":"11ce793c-f192-4892-aaad-9d11b9464cfb","block_type":"box","text":"shor t position, allowing the Fund to select the most attractive par t of the yield curve. An MMD Swap is a contract","page_number":97,"box":{"x":69,"y":286,"width":808,"height":12}},{"id":"56477689-9b12-48e9-9bb0-3708cc7f40ff","block_type":"box","text":"between a Fund and an MMD Swap provider pursuant to which the par ties agree to make payments to each other on","page_number":97,"box":{"x":69,"y":302,"width":832,"height":11}},{"id":"68b1ff23-e7bb-474d-b867-6cb073e50228","block_type":"box","text":"a notional amount, contingent upon whether the Municipal Market Data AAA General Obligation Scale is above or","page_number":97,"box":{"x":69,"y":317,"width":804,"height":11}},{"id":"7dbc85a8-1680-47b5-9d56-fa18a73d6db8","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":97,"box":{"x":69,"y":332,"width":803,"height":11}},{"id":"6826e6c5-5a08-4220-a0b0-86fb12a66c5d","block_type":"box","text":"Municipal Market Data AAA General Obligation Scale is below the specified level on the expiration date, the","page_number":97,"box":{"x":70,"y":347,"width":763,"height":11}},{"id":"4c5ce329-2318-4e80-9dac-2f6b49895877","block_type":"box","text":"counterpar ty to the contract will make a payment to the Fund equal to the specified level minus the actual level,","page_number":97,"box":{"x":69,"y":362,"width":797,"height":11}},{"id":"8bf78838-45b7-4810-a32e-af2c6ad0a191","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":97,"box":{"x":69,"y":377,"width":836,"height":12}},{"id":"f8c491a9-e8d6-485f-bb66-120ded588d52","block_type":"box","text":"the specified level on the expiration date, a Fund will make a payment to the counterpar ty equal to the actual level","page_number":97,"box":{"x":68,"y":392,"width":816,"height":12}},{"id":"b7bbc7f2-9bd3-4b6e-b81e-58265213ff48","block_type":"box","text":"minus the specified level, multiplied by the notional amount of the contract.","page_number":97,"box":{"x":69,"y":407,"width":537,"height":12}},{"id":"a7b79033-eda7-49f8-8d66-e8f800c3bf8b","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":97,"box":{"x":102,"y":430,"width":788,"height":11}},{"id":"7915d05d-dc81-49b2-8503-25991342f0f8","block_type":"box","text":"opposite direction than anticipated by a Fund, which would cause the Fund to make payments to its counterpar ty in","page_number":97,"box":{"x":69,"y":446,"width":821,"height":10}},{"id":"bdf2e006-dd41-43d8-acc0-ad986b5f5ebf","block_type":"box","text":"the transaction that could adversely affect the Fund’s per formance.","page_number":97,"box":{"x":68,"y":460,"width":482,"height":12}},{"id":"3831e7c1-72a7-4c28-a0c9-08257fc4d840","block_type":"box","text":"Insured Municipal Bonds.","page_number":97,"box":{"x":102,"y":483,"width":179,"height":11}},{"id":"3805fbef-82af-4cd4-a188-83d01c4eab82","block_type":"box","text":"Bonds purchased by a Fund may be covered by insurance that guarantees that interest","page_number":97,"box":{"x":288,"y":483,"width":619,"height":11}},{"id":"c5093dd6-18ad-401d-a6a8-777b14a778a4","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":97,"box":{"x":70,"y":498,"width":835,"height":11}},{"id":"58771958-f566-42e0-890f-e45eeff89736","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":97,"box":{"x":69,"y":513,"width":840,"height":12}},{"id":"00b4d4fd-ea17-4006-a33f-91e9ae7dfde9","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":97,"box":{"x":69,"y":528,"width":818,"height":12}},{"id":"52334df3-b297-4ae5-9f91-f77664984369","block_type":"box","text":"shareholders against losses caused by declines in a bond’s market value. Also, the Fund cannot be cer tain that any","page_number":97,"box":{"x":69,"y":544,"width":829,"height":11}},{"id":"e0ca314d-bfde-41d1-b63d-453c5d0d161b","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":97,"box":{"x":70,"y":559,"width":827,"height":11}},{"id":"9b5a63b7-2d45-4dd7-8a38-f5c741bcdbbf","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":97,"box":{"x":70,"y":574,"width":815,"height":11}},{"id":"83e837f5-685b-4dea-be35-2a23717d10f4","block_type":"box","text":"ability, financial strength, or equivalent ratings of at least investment grade. However, if insurance from insurers with","page_number":97,"box":{"x":69,"y":589,"width":829,"height":11}},{"id":"f00b9eed-86c3-4eff-80b4-ccbeb082bfb1","block_type":"box","text":"these ratings is not available, the Fund may use insurance companies with lower ratings or stop purchasing","page_number":97,"box":{"x":68,"y":604,"width":767,"height":11}},{"id":"efe5f1bb-b8ca-4881-8993-2218d0fc51ff","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":97,"box":{"x":70,"y":619,"width":827,"height":11}},{"id":"ca859695-e6bc-4e19-8602-a79978dc8f6b","block_type":"box","text":"bond could drop.","page_number":97,"box":{"x":69,"y":634,"width":118,"height":11}},{"id":"ce781329-833e-4662-9d76-312dca5458fa","block_type":"box","text":"Build America Bonds.","page_number":97,"box":{"x":102,"y":657,"width":150,"height":9}},{"id":"09824257-1122-4c3f-8276-c1e759d5a101","block_type":"box","text":"If a Fund holds Build America Bonds, the Fund may be eligible to receive a U.S. federal","page_number":97,"box":{"x":259,"y":657,"width":616,"height":11}},{"id":"7c5a5bc8-4210-4c32-85cd-b10299e1f8f9","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":97,"box":{"x":70,"y":672,"width":825,"height":11}},{"id":"0085de59-909c-4389-94d8-97ec56c11140","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":97,"box":{"x":68,"y":687,"width":824,"height":11}},{"id":"571300f3-287b-410e-8778-68e0ef977280","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":97,"box":{"x":70,"y":702,"width":833,"height":11}},{"id":"c33f3eb1-204c-4199-af5a-2b8e4be00737","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":97,"box":{"x":69,"y":717,"width":815,"height":12}},{"id":"cf70a2ef-b65a-419c-9959-b3797eeccbae","block_type":"box","text":"minimum distribution requirement, the Fund may elect for U.S. federal income tax purposes to pass through to","page_number":97,"box":{"x":69,"y":732,"width":788,"height":12}},{"id":"18c338f2-f583-4c5b-8438-e5059638c0c0","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":97,"box":{"x":69,"y":748,"width":823,"height":11}},{"id":"19eb941f-4b9e-4ee4-8ed8-383bb9f5bc1f","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":97,"box":{"x":70,"y":763,"width":825,"height":11}},{"id":"cb507b70-9b59-49cc-8dcf-4b6dfcb38d5f","block_type":"box","text":"clean renewable energy bond, a qualified energy conservation bond, or a qualified zone academy bond, each of which","page_number":97,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"120621dc-d709-47f7-be45-3b1ccf3e34c5","block_type":"box","text":"must meet cer tain requirements specified in the Code), a “Build America Bond” (which includes cer tain qualified","page_number":97,"box":{"x":69,"y":793,"width":802,"height":11}},{"id":"0008b4a5-f8ba-41a0-b300-3f45ea96b2f6","block_type":"box","text":"bonds issued before January 1, 2011) or cer tain other specified bonds. If the Fund were to so elect, a shareholder","page_number":97,"box":{"x":69,"y":808,"width":821,"height":11}},{"id":"77858b48-1579-4074-96d6-ea42432e001a","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":97,"box":{"x":68,"y":823,"width":760,"height":11}},{"id":"b36a7923-e3b0-4045-b141-6db0cccdf792","block_type":"box","text":"propor tionate share of such credits, and such amount would be subject to withholding provisions of the Code.","page_number":97,"box":{"x":70,"y":838,"width":782,"height":12}},{"id":"49037e1a-8294-4d99-8d64-06e4ea476201","block_type":"box","text":"Cer tain limitations may apply on the extent to which the credit may be claimed.","page_number":97,"box":{"x":69,"y":854,"width":563,"height":11}},{"id":"142147ac-7b1d-4e72-9e88-3d794a1e3c8e","block_type":"box","text":"Tax-Exempt Municipal Investments.","page_number":97,"box":{"x":103,"y":876,"width":246,"height":11}},{"id":"952bde54-99d6-4c49-bec3-1f48d5659c3d","block_type":"box","text":"Cer tain Funds may hold tax-exempt municipal investments which may be in","page_number":97,"box":{"x":355,"y":876,"width":534,"height":11}},{"id":"9eddbd07-4c7b-48c7-87c9-3acde943d633","block_type":"box","text":"the form of tender option bonds, variable rate demand obligations, par ticipations, beneficial interests in a trust,","page_number":97,"box":{"x":68,"y":891,"width":798,"height":12}},{"id":"163c5059-dc6c-4af9-a48c-eb2dcb0e20dd","block_type":"box","text":"par tnership interests or other forms. These investments are described in greater detail above in this section. Some","page_number":97,"box":{"x":70,"y":906,"width":823,"height":12}},{"id":"b8b5b5ee-4744-4ffe-b145-1a8b4081381f","block_type":"box","text":"II-62","page_number":97,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f1fc83a1-c8e8-4968-8198-c74412278f0f","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":97,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"700a8cd7-a36a-4ca8-ad7c-f98ef2ac61bd","block_type":"box","text":"of the structures used by cer tain Funds include interests in long-term fixed-rate municipal debt obligations, held by a","page_number":98,"box":{"x":69,"y":45,"width":830,"height":11}},{"id":"69efe06a-d977-4fcd-bf6d-c7a878cb10a0","block_type":"box","text":"trustee or custodian, that are coupled with tender option, demand and other features when the tax-exempt municipal","page_number":98,"box":{"x":68,"y":60,"width":832,"height":11}},{"id":"452ddbcc-b92c-4951-ad99-78b3ea469975","block_type":"box","text":"investments are created. Together, these features entitle the holder of the interest to tender (or put) the underlying","page_number":98,"box":{"x":70,"y":75,"width":819,"height":11}},{"id":"33073b52-3299-4b4d-b635-bdbed8dc7a1d","block_type":"box","text":"municipal debt obligation to a third par ty at periodic intervals and to receive the principal amount thereof.","page_number":98,"box":{"x":69,"y":90,"width":752,"height":11}},{"id":"bd640c4a-1216-41e9-8019-2ed4cd0c37f7","block_type":"box","text":"In some cases, municipal debt obligations are represented by custodial receipts evidencing rights to receive","page_number":98,"box":{"x":102,"y":113,"width":770,"height":11}},{"id":"a142ab62-cac9-4947-bcf7-39ff54bcbcd8","block_type":"box","text":"specific future interest payments, principal payments, or both, on the underlying securities held by the custodian.","page_number":98,"box":{"x":69,"y":128,"width":806,"height":11}},{"id":"65a9e8da-41c5-4d9e-974c-f8c87e03beea","block_type":"box","text":"Under such arrangements, the holder of the custodial receipt has the option to tender the underlying securities at","page_number":98,"box":{"x":70,"y":143,"width":809,"height":11}},{"id":"66a9f0f2-4e11-495f-8021-985c41cd0fce","block_type":"box","text":"their face value to the sponsor (","page_number":98,"box":{"x":68,"y":158,"width":228,"height":11}},{"id":"1d255f64-c83c-4511-81c7-9030a4b092b4","block_type":"box","text":"e.g.","page_number":98,"box":{"x":297,"y":160,"width":25,"height":9}},{"id":"37dd682b-c7d9-49d8-8c01-6309f079da49","block_type":"box","text":", a Fund, or a bank or broker-dealer or other financial institution), which is paid","page_number":98,"box":{"x":325,"y":158,"width":557,"height":11}},{"id":"70594b58-b85f-444b-9da4-c669eb761598","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":98,"box":{"x":70,"y":173,"width":803,"height":11}},{"id":"75968e43-5533-483e-8e32-4a199365c71c","block_type":"box","text":"securities, coupled with the tender option, to trade at par on the date of a rate adjustment.","page_number":98,"box":{"x":69,"y":188,"width":648,"height":11}},{"id":"43d0091e-e18c-4772-8717-636226634062","block_type":"box","text":"A par ticipation interest gives the Fund an undivided interest in a Municipal Bond in the propor tion the Fund’s","page_number":98,"box":{"x":101,"y":211,"width":775,"height":11}},{"id":"9675fb32-526b-4a8b-a65c-bb25857bc58e","block_type":"box","text":"par ticipation bears to the total principal amount of the Municipal Bond, and typically provides for a repurchase","page_number":98,"box":{"x":70,"y":226,"width":785,"height":11}},{"id":"2fe6d4a3-f483-42a5-bd64-905852d34c2a","block_type":"box","text":"feature for all or any par t of the full principal amount of the par ticipation interest, plus accrued interest. Trusts and","page_number":98,"box":{"x":68,"y":241,"width":821,"height":11}},{"id":"2635a10e-1eb9-4945-900f-e9e67cf130da","block_type":"box","text":"par tnerships are typically used to conver t long-term fixed rate high quality bonds of a single state or municipal issuer","page_number":98,"box":{"x":70,"y":256,"width":833,"height":12}},{"id":"54d23f77-570d-42ab-9042-f7571c4e53e9","block_type":"box","text":"into variable or floating rate demand instruments.","page_number":98,"box":{"x":70,"y":271,"width":351,"height":12}},{"id":"8bc6d0ad-0328-45e7-8621-bde4e6c31dc3","block_type":"box","text":"The Municipal Bond Funds may hold par ticipation interests and custodial receipts for municipal debt obligations","page_number":98,"box":{"x":101,"y":294,"width":797,"height":11}},{"id":"bdc37f25-23a5-45a9-9c6b-5115a741388a","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":98,"box":{"x":68,"y":309,"width":836,"height":11}},{"id":"31a0d735-e98c-4935-9651-93b4dde82072","block_type":"box","text":"not ruled on whether the interest received on tax-exempt municipal investments in the form of par ticipation interests","page_number":98,"box":{"x":69,"y":324,"width":831,"height":11}},{"id":"ea5b02e3-9d4c-47b4-ba05-23187c97058f","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":98,"box":{"x":69,"y":339,"width":809,"height":12}},{"id":"83014790-2280-4234-a211-cefc3232f716","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":98,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"7acca73d-0734-4578-bbe5-b077c29b5564","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":98,"box":{"x":69,"y":370,"width":828,"height":11}},{"id":"1c218354-08e1-4e0c-927c-6efd8869a3a8","block_type":"box","text":"such opinions.","page_number":98,"box":{"x":69,"y":385,"width":102,"height":11}},{"id":"6ed1d65e-b3f3-41ba-a9d4-fd93cf9e812f","block_type":"box","text":"Operational and Technology Risks.","page_number":98,"box":{"x":102,"y":408,"width":250,"height":11}},{"id":"4c54b477-a0c2-46c5-9ad4-66dc90ac19e0","block_type":"box","text":"The Fund and the entities with which it interacts directly or indirectly are","page_number":98,"box":{"x":358,"y":408,"width":512,"height":11}},{"id":"4d3a4f52-86d4-4f1d-ba31-5fa448881638","block_type":"box","text":"susceptible to operational and technology risks, including those related to human errors, processing errors,","page_number":98,"box":{"x":69,"y":423,"width":766,"height":11}},{"id":"852cbd86-70db-48cc-b136-62b4771aa903","block_type":"box","text":"communication errors, systems failures, cybersecurity incidents, and the use of ar tificial intelligence and machine","page_number":98,"box":{"x":69,"y":438,"width":812,"height":11}},{"id":"471f8bd5-0d6e-48e5-aee3-a9cc79995cc3","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":98,"box":{"x":70,"y":453,"width":820,"height":11}},{"id":"fb4ead4d-d07d-491a-86a6-9d0969a6fd91","block_type":"box","text":"entities include, but are not limited to, the Fund’s adviser, administrator, distributor, other service providers (e.g.,","page_number":98,"box":{"x":69,"y":468,"width":807,"height":11}},{"id":"47c1b55c-3000-4d4d-8371-fb52bc29215d","block_type":"box","text":"index and benchmark providers, accountants, custodians, and transfer agents), financial intermediaries,","page_number":98,"box":{"x":70,"y":483,"width":741,"height":11}},{"id":"a27dee5e-1638-4cfa-b224-c2cbbdf062c0","block_type":"box","text":"counterpar ties, market makers, Authorized Par ticipants, listing exchanges, other financial market operators, and","page_number":98,"box":{"x":69,"y":498,"width":802,"height":11}},{"id":"c060f812-3b6d-435b-9f72-1afe5bc856e8","block_type":"box","text":"governmental authorities, as applicable. Operational and technology risks for the issuers in which the Fund invests","page_number":98,"box":{"x":68,"y":513,"width":818,"height":12}},{"id":"c9460108-415e-43e3-9942-0d0c48ecaa0d","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":98,"box":{"x":69,"y":528,"width":827,"height":12}},{"id":"aa718323-1e67-43be-9c3c-15b1cec1eb83","block_type":"box","text":"issuers to lose value. The Fund may incur substantial costs in order to mitigate operational and technology risks.","page_number":98,"box":{"x":70,"y":544,"width":803,"height":11}},{"id":"2007b717-0826-4f68-93a0-55533a8a2dc7","block_type":"box","text":"Cybersecurity incidents can result from deliberate attacks or unintentional events against an issuer in which the","page_number":98,"box":{"x":102,"y":566,"width":796,"height":11}},{"id":"db400e78-2771-45a4-991b-30723146a29d","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":98,"box":{"x":70,"y":581,"width":790,"height":12}},{"id":"7be4e40c-138d-401d-bc1b-cfebb6329d5c","block_type":"box","text":"access to systems, misappropriating assets or sensitive information, corrupting or destroying data, and causing","page_number":98,"box":{"x":69,"y":596,"width":800,"height":12}},{"id":"e322b98a-a62a-43d0-b147-593837f665ee","block_type":"box","text":"operational disruption. Geopolitical tension may increase the scale and sophistication of deliberate attacks,","page_number":98,"box":{"x":69,"y":612,"width":768,"height":11}},{"id":"5a9304aa-b8ae-4bc5-a788-a38c54c4e423","block_type":"box","text":"par ticularly those from nation states or from entities with nation state backing. Cybersecurity incidents may result in","page_number":98,"box":{"x":70,"y":627,"width":827,"height":11}},{"id":"c66d1e97-daa3-4e47-9ae1-4c2c9f09f108","block_type":"box","text":"any of the following: financial losses; inter ference with the Fund’s ability to calculate its NAV; disclosure of","page_number":98,"box":{"x":69,"y":642,"width":760,"height":11}},{"id":"c1593780-caeb-4306-9d11-0d3fc4c4b3eb","block_type":"box","text":"confidential information; impediments to trading; submission of erroneous trades by the Fund or erroneous","page_number":98,"box":{"x":69,"y":657,"width":763,"height":11}},{"id":"0783918f-f015-4387-9613-8d35de9e8366","block_type":"box","text":"subscription or redemption orders; the inability of the Fund or its service providers to transact business; violations of","page_number":98,"box":{"x":69,"y":672,"width":835,"height":11}},{"id":"955c05ea-0ef9-41ba-a433-810c1ae888db","block_type":"box","text":"applicable privacy and other laws; regulatory fines; penalties; reputational damage; reimbursement or other","page_number":98,"box":{"x":69,"y":687,"width":766,"height":11}},{"id":"dcfc3e8e-2907-4df3-9fd4-4c75f9880e29","block_type":"box","text":"compensation costs; and other legal and compliance expenses. Fur thermore, cybersecurity incidents may render","page_number":98,"box":{"x":69,"y":703,"width":804,"height":11}},{"id":"e7abb528-4670-4c18-9415-23c9de2ee7f9","block_type":"box","text":"records of the Fund, including records relating to its assets and transactions, shareholder ownership of Fund shares,","page_number":98,"box":{"x":69,"y":717,"width":833,"height":12}},{"id":"565dbc25-173b-4ae0-b956-577bbdab726f","block_type":"box","text":"and other data integral to the Fund’s functioning, inaccessible, inaccurate or incomplete. Power outages, natural","page_number":98,"box":{"x":69,"y":732,"width":800,"height":12}},{"id":"ad598290-edc5-4593-8d66-82a47302fa77","block_type":"box","text":"disasters, equipment malfunctions and processing errors that threaten information and technology systems relied","page_number":98,"box":{"x":69,"y":748,"width":812,"height":11}},{"id":"95e1a840-e8c5-4a02-9b90-db47593082b2","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":98,"box":{"x":69,"y":763,"width":777,"height":11}},{"id":"822a6de9-abc9-41e3-ae6e-5e60d66eff13","block_type":"box","text":"systems, may also disrupt business operations or impact critical data. Recent advances in AI technology pose risks","page_number":98,"box":{"x":69,"y":778,"width":824,"height":11}},{"id":"1b4dfd24-54f9-4a76-b429-1482ac6f88b7","block_type":"box","text":"to the Fund and its por tfolio investments. These advancements could harm the Fund and its por tfolio investments by","page_number":98,"box":{"x":68,"y":793,"width":836,"height":11}},{"id":"54459d6d-409a-4e32-a864-b402454a1868","block_type":"box","text":"reducing the demand for both the technology and software offerings of the Fund’s por tfolio investments. Additionally,","page_number":98,"box":{"x":69,"y":808,"width":833,"height":11}},{"id":"02c5e04a-985d-4694-b067-e187de84efc8","block_type":"box","text":"these advancements could significantly disrupt the Fund’s por tfolio investments and subject them to increased","page_number":98,"box":{"x":68,"y":823,"width":793,"height":12}},{"id":"4ceb10a2-49e3-401b-a7fe-91ad86eab773","block_type":"box","text":"competition, which could have a material adverse effect on business, financial condition, and results of operations.","page_number":98,"box":{"x":69,"y":838,"width":822,"height":11}},{"id":"b175da17-ebb0-48fb-bfad-bb7eede8be64","block_type":"box","text":"AI technology advancements, including efficiency improvements, without related increases in the adoption and","page_number":98,"box":{"x":68,"y":853,"width":787,"height":12}},{"id":"df23f9f2-ba42-4598-bf5a-333f498a1b51","block_type":"box","text":"development of such technologies, could also negatively impact demand for, and the valuation of, digital","page_number":98,"box":{"x":69,"y":869,"width":742,"height":11}},{"id":"0411efe7-bbd5-4ded-9c97-6ead71c7f858","block_type":"box","text":"infrastructure assets.","page_number":98,"box":{"x":70,"y":884,"width":151,"height":9}},{"id":"df9f2aa9-1320-40ba-adaf-3754d826ab14","block_type":"box","text":"II-63","page_number":98,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"28dabfa4-a958-436d-a68c-1f5d376e15a6","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":98,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b12a904d-2fd6-45ec-baa8-2f434e6f391d","block_type":"box","text":"The Fund and its por tfolio investments could be exposed to the risks of AI technology if third-par ty service","page_number":99,"box":{"x":101,"y":45,"width":755,"height":11}},{"id":"984214de-bb6c-454d-b16a-754172a78b22","block_type":"box","text":"providers or any counterpar ties, whether or not known to the Fund, also use AI technology in their business activities.","page_number":99,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"0957a2a0-52d1-4f78-aef3-2d74980f69fb","block_type":"box","text":"The Fund and its service providers may not be in a position to control the use of AI technology in third-par ty products","page_number":99,"box":{"x":68,"y":75,"width":833,"height":11}},{"id":"2ed8fb22-8b81-41b4-9a69-d05b2213a4fb","block_type":"box","text":"or services.","page_number":99,"box":{"x":69,"y":90,"width":82,"height":9}},{"id":"d11591c4-d4bd-4522-bb64-137a3dd5a4a8","block_type":"box","text":"Use of AI technology could include the input of confidential information in contravention of applicable policies,","page_number":99,"box":{"x":102,"y":113,"width":781,"height":11}},{"id":"7fc8176a-5a29-4214-a590-97aecb1ebbfd","block_type":"box","text":"contractual or other obligations or restrictions, resulting in such confidential information becoming accessible by","page_number":99,"box":{"x":69,"y":128,"width":801,"height":11}},{"id":"25597dae-b49e-4076-9565-b1ccc6d72bdc","block_type":"box","text":"other third-par ty AI technology applications and users.","page_number":99,"box":{"x":69,"y":143,"width":383,"height":11}},{"id":"f5438d70-2e96-4fbb-831d-ade345f3a43d","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":99,"box":{"x":102,"y":166,"width":795,"height":11}},{"id":"8bf3ecba-005a-48ec-b5f3-a29a492b4b37","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":99,"box":{"x":69,"y":181,"width":813,"height":11}},{"id":"cb16afb8-3846-4f3a-a7a0-ce8cfc240aaf","block_type":"box","text":"relevant data into the models that AI technology utilizes to operate. Cer tain data in such models will inevitably","page_number":99,"box":{"x":69,"y":196,"width":785,"height":11}},{"id":"009660b7-e493-4032-9d7b-5bee369a9652","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":99,"box":{"x":69,"y":211,"width":782,"height":11}},{"id":"650391f8-0bb3-4bdc-83ea-c8942be476dc","block_type":"box","text":"degrade the effectiveness of AI technology. The output or results of any such AI technologies may therefore be","page_number":99,"box":{"x":69,"y":226,"width":787,"height":11}},{"id":"442139b9-0d77-4d81-b5eb-e8f0892e6f31","block_type":"box","text":"incomplete, erroneous, distor ted, or misleading. Fur ther, AI tools may lack transparency as to how data is utilized","page_number":99,"box":{"x":70,"y":241,"width":809,"height":11}},{"id":"1556ed16-d273-481c-9311-e6e68bbfece5","block_type":"box","text":"and how outputs are generated. AI technologies may also allow the unintended introduction of vulnerabilities into","page_number":99,"box":{"x":69,"y":256,"width":805,"height":12}},{"id":"f5529a0e-81d0-4b07-ae9c-0312e19b437b","block_type":"box","text":"infrastructures and applications. To the extent that the Fund or its por tfolio investments are exposed to the risks of","page_number":99,"box":{"x":70,"y":271,"width":822,"height":11}},{"id":"2a93b116-6b14-4632-ac9f-13278e1df851","block_type":"box","text":"AI technology use, any such inaccuracies or errors could have adverse impacts on the Fund or its investments.","page_number":99,"box":{"x":68,"y":287,"width":789,"height":11}},{"id":"0998a2fe-240d-4935-9384-555b369b35a3","block_type":"box","text":"Regulations related to AI technology could also impose cer tain obligations and costs related to monitoring and","page_number":99,"box":{"x":102,"y":309,"width":786,"height":11}},{"id":"02f32502-b3e4-4c8e-8bbf-7d8a7bd01b3e","block_type":"box","text":"compliance. For example, in April 2023, the Federal Trade Commission, U.S. Depar tment of Justice, Consumer","page_number":99,"box":{"x":69,"y":324,"width":791,"height":11}},{"id":"028ac3fa-8207-4a91-9a59-da111c0fad50","block_type":"box","text":"Financial Protection Bureau, and U.S. Equal Employment Oppor tunity Commission released a joint statement on","page_number":99,"box":{"x":70,"y":340,"width":796,"height":11}},{"id":"932b1b82-f02e-472d-8ebc-917c6d7877c9","block_type":"box","text":"ar tificial intelligence demonstrating interest in monitoring the development and use of automated systems and","page_number":99,"box":{"x":69,"y":355,"width":788,"height":11}},{"id":"78ed1783-2cdc-42f6-9e43-572569988442","block_type":"box","text":"enforcement of their respective laws and regulations. In October 2023, an executive order established new standards","page_number":99,"box":{"x":69,"y":370,"width":839,"height":11}},{"id":"592bf7d0-5353-4cdc-9c17-0bdd18b73ba6","block_type":"box","text":"for AI safety and security. In addition to the U.S. regulatory framework, in 2024, the EU adopted the Ar tificial","page_number":99,"box":{"x":68,"y":385,"width":773,"height":11}},{"id":"e603b4c2-3599-43e8-a409-d66cd9051598","block_type":"box","text":"Intelligence Act, which applies to cer tain AI technology and the data used to train, test, and deploy them, which may","page_number":99,"box":{"x":70,"y":400,"width":826,"height":11}},{"id":"e8ea546a-9786-4d7c-b9f9-37c01d02a800","block_type":"box","text":"create additional compliance burdens, higher administrative costs, and significant penalties should the Fund, the","page_number":99,"box":{"x":69,"y":415,"width":805,"height":11}},{"id":"b62ee403-0fbe-46a9-8958-66178cc4320a","block_type":"box","text":"adviser, or the Fund’s por tfolio investments fail to comply.","page_number":99,"box":{"x":69,"y":430,"width":412,"height":11}},{"id":"43ae3120-285c-46ff-81b6-a06d1994d9c4","block_type":"box","text":"AI technology and its applications, including in the investment and financial sectors, continue to develop rapidly,","page_number":99,"box":{"x":101,"y":453,"width":797,"height":11}},{"id":"c6def565-3c7c-46fa-ab71-0b36ce4cd459","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":99,"box":{"x":69,"y":468,"width":817,"height":11}},{"id":"a186670a-88c6-463b-ba3b-360813d28eca","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":99,"box":{"x":68,"y":483,"width":824,"height":11}},{"id":"36151af5-7d61-46e3-9711-65a35024d03a","block_type":"box","text":"or remediate all of the potential risks, challenges, or impacts of such changes.","page_number":99,"box":{"x":69,"y":498,"width":561,"height":11}},{"id":"4966cbae-0393-4938-9354-d42aeee427ad","block_type":"box","text":"While the Fund’s service providers are required to have appropriate operational, information security and","page_number":99,"box":{"x":101,"y":521,"width":747,"height":11}},{"id":"53f22718-d8e7-49b3-86e3-a88b31ba6925","block_type":"box","text":"cybersecurity risk management policies and procedures, their methods of risk management may differ from those of","page_number":99,"box":{"x":69,"y":536,"width":830,"height":11}},{"id":"3b91d291-865a-4ae5-ae7e-bfc9db4e351a","block_type":"box","text":"the Fund in the setting of priorities, the personnel and resources available or the effectiveness of relevant controls.","page_number":99,"box":{"x":68,"y":551,"width":823,"height":11}},{"id":"20a33a81-182a-49a0-916c-501ee6eabb21","block_type":"box","text":"The Fund and its adviser seek to reduce these risks through controls, procedures and oversight, including","page_number":99,"box":{"x":68,"y":566,"width":755,"height":11}},{"id":"1557b1b3-4f95-46e5-b73f-cd1a513969d8","block_type":"box","text":"establishing business continuity plans and risk management systems. However, there are inherent limitations in such","page_number":99,"box":{"x":69,"y":582,"width":838,"height":11}},{"id":"6128ade3-a197-437a-a301-58dacb8ee7e6","block_type":"box","text":"plans and systems, including the possibility that cer tain risks that may affect the Fund have not been identified or","page_number":99,"box":{"x":70,"y":596,"width":812,"height":12}},{"id":"545b1c7b-d17b-4f5c-aa1d-40ff38512419","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":99,"box":{"x":69,"y":612,"width":828,"height":11}},{"id":"130b2f5d-6d63-45fe-95a4-26a0fd6babf6","block_type":"box","text":"effects of operational or information security disruptions or failures or of cybersecurity incidents; or that prevention","page_number":99,"box":{"x":69,"y":627,"width":819,"height":11}},{"id":"c7819825-c3b9-4bda-996b-0fef22600ed2","block_type":"box","text":"and remediation effor ts will not be successful or that incidents will go undetected. The Fund cannot control the","page_number":99,"box":{"x":69,"y":642,"width":792,"height":11}},{"id":"b7e449cd-b305-47dd-a558-1f47efc34ab9","block_type":"box","text":"systems, information security or other cybersecurity of the issuers in which it invests or its service providers,","page_number":99,"box":{"x":69,"y":657,"width":775,"height":11}},{"id":"b6216ee7-c773-43c4-9291-67fba3e20487","block_type":"box","text":"counterpar ties, and other third par ties whose activities affect the Fund.","page_number":99,"box":{"x":69,"y":672,"width":510,"height":11}},{"id":"f1635a79-6ca6-4930-aed8-fad525368f05","block_type":"box","text":"Lastly, the regulatory climate governing cybersecurity and data protection is developing quickly and may vary","page_number":99,"box":{"x":102,"y":695,"width":771,"height":11}},{"id":"db3a7f52-afe4-41e2-9f06-b3d489749588","block_type":"box","text":"considerably across jurisdictions. Regulators continue to develop new rules and standards related to cybersecurity","page_number":99,"box":{"x":69,"y":710,"width":816,"height":11}},{"id":"07f8659d-6d7d-4f5a-b5df-ae4e101b7f2b","block_type":"box","text":"and data protection. Compliance with evolving regulations can be demanding and costly, requiring substantial","page_number":99,"box":{"x":69,"y":725,"width":778,"height":11}},{"id":"61c81519-c1e1-4cbb-8870-821fc714d946","block_type":"box","text":"resources to monitor and implement required changes.","page_number":99,"box":{"x":69,"y":740,"width":391,"height":11}},{"id":"0ba765f6-6907-4280-8ff7-5bb4c05108f3","block_type":"box","text":"Participation Notes.","page_number":99,"box":{"x":102,"y":763,"width":145,"height":11}},{"id":"54d27898-9733-4325-87a7-cdaf49c76c76","block_type":"box","text":"A Fund may buy par ticipation notes from a bank or broker-dealer (“issuer”) that entitle the","page_number":99,"box":{"x":253,"y":763,"width":641,"height":11}},{"id":"32466e3a-2fcb-4e4a-8084-97b632ce8d26","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":99,"box":{"x":70,"y":778,"width":766,"height":11}},{"id":"860a91b3-fd6f-4bf8-affa-d2c32f848eb8","block_type":"box","text":"(collectively, the “underlying security”). Par ticipation notes are typically used when a direct investment in the","page_number":99,"box":{"x":69,"y":793,"width":772,"height":11}},{"id":"e951f68d-6e57-42e7-a49e-b2c1a84db250","block_type":"box","text":"underlying security is restricted due to country-specific regulations.","page_number":99,"box":{"x":69,"y":808,"width":475,"height":11}},{"id":"7014e055-2f19-465e-aa1f-874df87c81b7","block_type":"box","text":"The Fund is subject to counterpar ty risk associated with each issuer. Investment in a par ticipation note is not","page_number":99,"box":{"x":101,"y":831,"width":782,"height":11}},{"id":"c3b862ba-e7fd-4e52-ac88-6f6bfc372daf","block_type":"box","text":"the same as investment in the constituent shares of the company. A par ticipation note represents only an obligation","page_number":99,"box":{"x":68,"y":846,"width":831,"height":11}},{"id":"394e81f6-bae4-4e43-b481-9f769e45da9d","block_type":"box","text":"of the issuer to provide the Fund the economic per formance equivalent to holding shares of an underlying security. A","page_number":99,"box":{"x":69,"y":861,"width":831,"height":11}},{"id":"2c7dc63d-d450-46d7-88a3-924a4e9a0652","block_type":"box","text":"par ticipation note does not provide any beneficial or equitable entitlement or interest in the relevant underlying","page_number":99,"box":{"x":70,"y":876,"width":789,"height":11}},{"id":"7dce41a3-3f8f-4b9f-a456-7e8a241d59c2","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":99,"box":{"x":69,"y":891,"width":791,"height":12}},{"id":"61c15b1e-6c91-4c2d-9657-1ca51e35bcb2","block_type":"box","text":"par ticipation note synthetically replicates the economic benefit of holding shares in the underlying security. Because","page_number":99,"box":{"x":70,"y":906,"width":827,"height":12}},{"id":"be14fd27-1630-4808-8e10-8f5245029f8a","block_type":"box","text":"II-64","page_number":99,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"0288af9f-ce48-4b2e-abe8-4f723e82763d","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":99,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f01eaca1-d993-4ed7-a340-fbb787fedd5a","block_type":"box","text":"a par ticipation note is an obligation of the issuer, rather than a direct investment in shares of the underlying security,","page_number":100,"box":{"x":69,"y":45,"width":834,"height":11}},{"id":"a1c79199-9b8e-4a9e-b23a-8c5295589d68","block_type":"box","text":"a Fund may suffer losses potentially equal to the full value of the par ticipation note if the issuer fails to per form its","page_number":100,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"fd588dc8-28ea-4dd8-beb6-2b33864e216b","block_type":"box","text":"obligations. A Fund attempts to mitigate that risk by purchasing only from issuers determined to be creditwor thy.","page_number":100,"box":{"x":69,"y":75,"width":801,"height":11}},{"id":"7c351262-d040-44f4-91b9-6f9ad47ec0a1","block_type":"box","text":"The counterpar ty may, but is not required to, purchase the shares of the underlying security to hedge its","page_number":100,"box":{"x":101,"y":98,"width":743,"height":11}},{"id":"449fe7a2-7ad0-40f1-8457-37f58b02bd3b","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":100,"box":{"x":69,"y":113,"width":826,"height":11}},{"id":"70405e28-c761-4202-9f9f-37db15ccf7f5","block_type":"box","text":"par ticipation note expires or a Fund exercises the par ticipation note and closes its position, the Fund receives a","page_number":100,"box":{"x":70,"y":128,"width":799,"height":11}},{"id":"9b356b9a-aff1-4ba0-bac7-8567dcefe465","block_type":"box","text":"payment that is based upon the then-current value of the underlying security conver ted into U.S. dollars (less","page_number":100,"box":{"x":70,"y":143,"width":776,"height":11}},{"id":"2eb5c77c-7092-43fa-a4f4-3d479a8459ec","block_type":"box","text":"transaction costs). The price, per formance and liquidity of a par ticipation note are all linked directly to the underlying","page_number":100,"box":{"x":68,"y":158,"width":834,"height":11}},{"id":"a1579ab4-82b2-47df-8607-8bd4a5d2158b","block_type":"box","text":"security. A Fund’s ability to redeem or exercise a par ticipation note generally is dependent on the liquidity in the local","page_number":100,"box":{"x":69,"y":173,"width":834,"height":11}},{"id":"822e2609-c67e-444e-82e9-fb98f1d68821","block_type":"box","text":"trading market for the security underlying the par ticipation note.","page_number":100,"box":{"x":68,"y":188,"width":454,"height":12}},{"id":"ea09bcd5-c100-43cd-9bd0-0ee311d84400","block_type":"box","text":"Portfolio Turnover Rates.","page_number":100,"box":{"x":102,"y":211,"width":181,"height":9}},{"id":"5401b737-baa7-43f4-ab71-ff16e9c3ef8d","block_type":"box","text":"A Fund’s annual por tfolio turnover rate will not be a factor preventing a sale or","page_number":100,"box":{"x":289,"y":211,"width":558,"height":11}},{"id":"f431ed7a-8253-4367-8d5e-58a979df7a98","block_type":"box","text":"purchase when the Manager believes investment considerations warrant such sale or purchase. Although cer tain","page_number":100,"box":{"x":70,"y":226,"width":804,"height":11}},{"id":"15078a82-8635-4cc5-b5bd-cc1d4db67c96","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":100,"box":{"x":70,"y":241,"width":806,"height":11}},{"id":"a7308c6f-70b0-4a11-b6bc-d3602b88b9c3","block_type":"box","text":"substantial number of por tfolio transactions. With respect to these Funds, the rate of por tfolio turnover will be a","page_number":100,"box":{"x":69,"y":256,"width":800,"height":11}},{"id":"682e3014-9f14-4786-be78-2808252e975c","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":100,"box":{"x":70,"y":271,"width":818,"height":12}},{"id":"9f020b2a-2dc8-4044-951a-3c397088906e","block_type":"box","text":"the Manager will consider the impact of transaction costs on a Fund’s tracking error. Por tfolio turnover may vary","page_number":100,"box":{"x":68,"y":286,"width":800,"height":12}},{"id":"2e68cefd-ff9b-48af-8fd4-8bb2c901af89","block_type":"box","text":"greatly from year to year as well as within a par ticular year. High por tfolio turnover (","page_number":100,"box":{"x":68,"y":302,"width":595,"height":11}},{"id":"eaeaa201-e0f4-482f-a78e-23e8432cb570","block_type":"box","text":"i.e.","page_number":100,"box":{"x":665,"y":302,"width":20,"height":9}},{"id":"0f8a8ba0-399f-4623-aea9-5097b0cf3cc6","block_type":"box","text":", 100% or more) may result in","page_number":100,"box":{"x":687,"y":302,"width":210,"height":11}},{"id":"3be26b8b-4958-494e-8165-92c34b2c0586","block_type":"box","text":"increased transaction costs to a Fund, including brokerage commissions, dealer mark-ups and other transaction","page_number":100,"box":{"x":70,"y":317,"width":797,"height":11}},{"id":"98f51895-9b4b-457d-ad3b-4b6039198274","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":100,"box":{"x":69,"y":332,"width":832,"height":11}},{"id":"eb7db3d2-9547-410e-bfd0-d41857990e99","block_type":"box","text":"the recognition of capital gain or loss. Given the frequency of sales, such gain or loss will likely be shor t-term capital","page_number":100,"box":{"x":68,"y":347,"width":831,"height":11}},{"id":"ca54412f-ca3a-49a9-8b20-f36f058108cd","block_type":"box","text":"gain or loss. These effects of higher than normal por tfolio turnover may adversely affect a Fund’s per formance.","page_number":100,"box":{"x":68,"y":362,"width":795,"height":11}},{"id":"541ee9b2-fbe6-47f5-9a14-f975e7abce6d","block_type":"box","text":"Preferred Stock.","page_number":100,"box":{"x":102,"y":385,"width":118,"height":9}},{"id":"b4c95900-647b-42d9-a8c4-c9d0a4dd26ff","block_type":"box","text":"Cer tain Funds may invest in preferred stocks. Preferred stock has a preference over common","page_number":100,"box":{"x":226,"y":385,"width":665,"height":11}},{"id":"3d50c123-d7c2-4451-9ae7-2a8ba2c1400c","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":100,"box":{"x":69,"y":400,"width":808,"height":11}},{"id":"06ee3de2-5de3-47cc-9e1d-a9fe9f6cfb84","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":100,"box":{"x":69,"y":415,"width":834,"height":11}},{"id":"82ebff25-caf8-491e-9849-9e8b096a724c","block_type":"box","text":"varies inversely with interest rates and perceived credit risk, while the market price of conver tible preferred stock","page_number":100,"box":{"x":68,"y":430,"width":808,"height":11}},{"id":"fae21aee-32a0-4597-ab50-0f9d8bfa8990","block_type":"box","text":"generally also reflects some element of conversion value. Because preferred stock is junior to debt securities and","page_number":100,"box":{"x":68,"y":445,"width":813,"height":12}},{"id":"7b7b1897-e3c1-4617-9a52-14d57bf2399b","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":100,"box":{"x":69,"y":460,"width":831,"height":12}},{"id":"d2cba304-71d2-405a-8e47-b3b82f15bbd1","block_type":"box","text":"of a preferred stock than in a more senior debt security with similar stated yield characteristics. Unlike interest","page_number":100,"box":{"x":69,"y":475,"width":791,"height":12}},{"id":"9457d7f4-42ab-4eca-8852-aee6f3a1282c","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":100,"box":{"x":70,"y":491,"width":838,"height":11}},{"id":"d0b5f73d-440d-427a-af56-328456aa7caa","block_type":"box","text":"Preferred stock also may be subject to optional or mandatory redemption provisions.","page_number":100,"box":{"x":69,"y":506,"width":604,"height":11}},{"id":"c9d58e5a-43ec-4edc-ab17-17bbd956ef6f","block_type":"box","text":"Tax-Exempt Preferred Shares.","page_number":100,"box":{"x":103,"y":528,"width":207,"height":11}},{"id":"91e5bdd5-a793-48ce-af10-92f20226fb75","block_type":"box","text":"Cer tain Funds may invest in preferred interests of other investment funds that pay","page_number":100,"box":{"x":316,"y":528,"width":588,"height":12}},{"id":"5e2fa246-cab3-4d78-a5e7-88665100bf1d","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":100,"box":{"x":69,"y":543,"width":806,"height":12}},{"id":"83ceaa36-af4c-436b-a98a-8858a211bf7a","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":100,"box":{"x":69,"y":559,"width":814,"height":11}},{"id":"f8cf64f7-b47a-4d4e-a9aa-d353268b26eb","block_type":"box","text":"revenue bonds issued by state or local agencies to fund the development of low-income, multi-family housing.","page_number":100,"box":{"x":69,"y":574,"width":780,"height":11}},{"id":"1027075c-79d6-4cdb-91a0-19dc0af270d6","block_type":"box","text":"Investment in such tax-exempt preferred shares involves many of the same issues as investing in other investment","page_number":100,"box":{"x":70,"y":589,"width":820,"height":11}},{"id":"c9aa6b46-b586-464c-94f2-e65e9b738e82","block_type":"box","text":"companies. These investments also have additional risks, including illiquid investments risk, the absence of","page_number":100,"box":{"x":69,"y":604,"width":772,"height":11}},{"id":"b2c6fc80-a17c-45bd-9201-a30ea0a47ed0","block_type":"box","text":"regulation governing investment practices, capital structure and leverage, affiliated transactions and other matters,","page_number":100,"box":{"x":69,"y":619,"width":821,"height":11}},{"id":"b4e2cd9e-3b79-4b7d-8041-364880c8e943","block_type":"box","text":"and concentration of investments in par ticular issuers or industries. The Municipal Bond Funds will treat investments","page_number":100,"box":{"x":69,"y":634,"width":834,"height":11}},{"id":"f6ea9798-345b-43ab-981a-1df0b62dc79d","block_type":"box","text":"in tax-exempt preferred shares as investments in municipal bonds.","page_number":100,"box":{"x":70,"y":649,"width":474,"height":11}},{"id":"55190de4-ada5-45a0-a901-9879b2993702","block_type":"box","text":"Trust Preferred Securities.","page_number":100,"box":{"x":103,"y":672,"width":184,"height":9}},{"id":"df692238-8cf3-4832-86ba-ce19dbce8a0b","block_type":"box","text":"Cer tain Funds may invest in trust preferred securities. Trust preferred securities are","page_number":100,"box":{"x":294,"y":672,"width":599,"height":11}},{"id":"6c65b6a3-13fd-45d0-a764-188ae4cac61f","block_type":"box","text":"typically issued by corporations, generally in the form of interest bearing notes with preferred securities","page_number":100,"box":{"x":68,"y":687,"width":737,"height":11}},{"id":"a7883a45-865a-476c-aae7-9fd0462f96ea","block_type":"box","text":"characteristics, or by an affiliated business trust of a corporation, generally in the form of beneficial interests in","page_number":100,"box":{"x":69,"y":702,"width":796,"height":12}},{"id":"fa7ac4a2-170a-4877-acc4-302cf13d99f0","block_type":"box","text":"subordinated debentures or similarly structured securities. The trust preferred securities market consists of both","page_number":100,"box":{"x":69,"y":717,"width":805,"height":12}},{"id":"2ccfb55a-49ed-44ad-9a44-eb0f6ecd9a27","block_type":"box","text":"fixed and adjustable coupon rate securities that are either perpetual in nature or have stated maturity dates.","page_number":100,"box":{"x":68,"y":732,"width":773,"height":12}},{"id":"2e1b2285-ab56-4f45-9d25-f36e57d2d077","block_type":"box","text":"Trust preferred securities are typically junior and fully subordinated liabilities of an issuer and benefit from a","page_number":100,"box":{"x":101,"y":755,"width":770,"height":11}},{"id":"267bb71d-facf-4e21-a182-0bcec1a68cfd","block_type":"box","text":"guarantee that is junior and fully subordinated to the other liabilities of the guarantor. In addition, trust preferred","page_number":100,"box":{"x":68,"y":770,"width":801,"height":12}},{"id":"5177e5cb-2799-4783-9fcc-296c7631b4f5","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":100,"box":{"x":69,"y":785,"width":830,"height":12}},{"id":"1ce5c95e-686f-463b-ba2b-2cc535d2cae6","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":100,"box":{"x":69,"y":801,"width":822,"height":11}},{"id":"f9b05f57-8095-424f-8c54-d774a56e8b22","block_type":"box","text":"for extended periods of time without default consequences to the issuer, and cer tain other features (such as","page_number":100,"box":{"x":68,"y":816,"width":777,"height":11}},{"id":"78c36054-9000-4b63-985b-07f17c7d5777","block_type":"box","text":"restrictions on common dividend payments by the issuer or ultimate guarantor when full cumulative payments on the","page_number":100,"box":{"x":69,"y":831,"width":831,"height":11}},{"id":"25c24f5a-ec8c-4508-9a83-49a3b0df32e8","block_type":"box","text":"trust preferred securities have not been made), these trust preferred securities are often treated as close","page_number":100,"box":{"x":68,"y":846,"width":757,"height":11}},{"id":"48b2000c-8002-4b36-bd0f-2b4f76ffd9d9","block_type":"box","text":"substitutes for traditional preferred securities, both by issuers and investors.","page_number":100,"box":{"x":69,"y":861,"width":548,"height":11}},{"id":"d4a46a77-3628-47cf-a134-1bba494f7f52","block_type":"box","text":"Trust preferred securities include but are not limited to trust originated preferred securities (“TOPRS","page_number":100,"box":{"x":101,"y":884,"width":715,"height":11}},{"id":"8c40618e-0ab6-43ed-929a-1fe3b92514c6","block_type":"box","text":"®","page_number":100,"box":{"x":817,"y":884,"width":5,"height":5}},{"id":"56284130-8459-4930-983a-a5f37a730699","block_type":"box","text":"”); monthly","page_number":100,"box":{"x":824,"y":884,"width":77,"height":11}},{"id":"70e90ad6-0b1a-4dfc-a5b1-3b396ad35b41","block_type":"box","text":"income preferred securities (“MIPS","page_number":100,"box":{"x":70,"y":899,"width":248,"height":11}},{"id":"dbc34f30-c0aa-48e8-b862-39dda512b613","block_type":"box","text":"®","page_number":100,"box":{"x":319,"y":899,"width":6,"height":5}},{"id":"a25490e7-07a2-4304-9da3-79d40c50f8a9","block_type":"box","text":"”); quar terly income bond securities (“QUIBS","page_number":100,"box":{"x":326,"y":899,"width":317,"height":11}},{"id":"f091ba58-7264-4f45-b21d-6b6d5cf34f0b","block_type":"box","text":"®","page_number":100,"box":{"x":644,"y":899,"width":6,"height":5}},{"id":"1501d5d8-697d-4e20-8bcc-845b3c9b8d51","block_type":"box","text":"” ); quar terly income debt securities","page_number":100,"box":{"x":652,"y":899,"width":255,"height":11}},{"id":"6a12ee40-a18e-4258-a288-e52eb5c0e69b","block_type":"box","text":"II-65","page_number":100,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"8525b03a-2bd7-45c1-981c-3947b59bc9ef","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":100,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8af7bbad-f092-4f48-80ac-69a12e202390","block_type":"box","text":"(“QUIDS","page_number":101,"box":{"x":69,"y":45,"width":57,"height":11}},{"id":"3d5e22da-813a-42f1-b5f6-a54b9a2a77c0","block_type":"box","text":"®","page_number":101,"box":{"x":127,"y":45,"width":6,"height":4}},{"id":"3e39ad89-15ae-4c42-b18e-0295434a1343","block_type":"box","text":"”); quar terly income preferred securities (“QUIPS","page_number":101,"box":{"x":135,"y":45,"width":346,"height":11}},{"id":"635867f7-8172-49d1-8b55-01aa02e2af5c","block_type":"box","text":"SM","page_number":101,"box":{"x":482,"y":45,"width":11,"height":4}},{"id":"f3150f43-5a7f-4749-9219-94e0ebb45c53","block_type":"box","text":"”); corporate trust securities (“CORTS","page_number":101,"box":{"x":495,"y":45,"width":267,"height":11}},{"id":"e5a314f3-1426-4385-951a-e8afcac6df45","block_type":"box","text":"®","page_number":101,"box":{"x":762,"y":45,"width":6,"height":4}},{"id":"2e2b857e-2c3d-49b4-953b-5a54e79bd8aa","block_type":"box","text":"”); public income","page_number":101,"box":{"x":770,"y":45,"width":118,"height":11}},{"id":"743e3da0-08fd-4bf9-a23c-5e0b7d82e3f7","block_type":"box","text":"notes (“PINES","page_number":101,"box":{"x":69,"y":60,"width":99,"height":11}},{"id":"43cfe95f-2077-4c93-96cb-4dbc5bfe8fb5","block_type":"box","text":"®","page_number":101,"box":{"x":169,"y":60,"width":6,"height":5}},{"id":"7e0c02d3-3441-48d3-8268-18ec9125e647","block_type":"box","text":"”); and other trust preferred securities.","page_number":101,"box":{"x":177,"y":60,"width":275,"height":11}},{"id":"928b32d1-169c-4199-850f-de690b5be55c","block_type":"box","text":"Trust preferred securities are typically issued with a final maturity date, although some are perpetual in nature.","page_number":101,"box":{"x":101,"y":82,"width":790,"height":12}},{"id":"7369af60-c3eb-4524-9fc9-a36d93c88b7a","block_type":"box","text":"In cer tain instances, a final maturity date may be extended and/or the final payment of principal may be deferred at","page_number":101,"box":{"x":70,"y":98,"width":825,"height":11}},{"id":"731924f7-cafb-4833-9d74-76275c9e973c","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":101,"box":{"x":68,"y":113,"width":827,"height":11}},{"id":"1f69f901-9d15-432d-8984-a9ea36c7c7c5","block_type":"box","text":"payment obligations have been met, although issuers may be able to engage in open-market repurchases without","page_number":101,"box":{"x":70,"y":128,"width":808,"height":11}},{"id":"8641468e-19ce-4b22-b485-1913c099085a","block_type":"box","text":"regard to whether all payments have been paid.","page_number":101,"box":{"x":69,"y":143,"width":338,"height":11}},{"id":"2899b48a-2893-469d-8479-a58325eef110","block_type":"box","text":"Many trust preferred securities are issued by trusts or other special purpose entities established by operating","page_number":101,"box":{"x":102,"y":166,"width":784,"height":11}},{"id":"9ac3fabc-fb30-4655-b091-0e3909e587da","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":101,"box":{"x":69,"y":181,"width":811,"height":11}},{"id":"fa4e72c9-66a2-491e-a467-781a7f3f5205","block_type":"box","text":"sells such preferred securities to investors, it purchases debt of the operating company (with terms comparable to","page_number":101,"box":{"x":69,"y":196,"width":817,"height":11}},{"id":"51e2c7fd-70e1-4f49-a568-1ac177b84a56","block_type":"box","text":"those of the trust or special purpose entity securities), which enables the operating company to deduct for tax","page_number":101,"box":{"x":68,"y":211,"width":785,"height":11}},{"id":"0e152df0-dc0d-465e-bedc-074a18a9479e","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":101,"box":{"x":70,"y":226,"width":830,"height":11}},{"id":"73fbe0c8-b281-4bfa-a1c9-5f556c8d99e3","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":101,"box":{"x":70,"y":241,"width":819,"height":11}},{"id":"a7560182-9e3d-4e1b-a4a6-5198d38b74d7","block_type":"box","text":"trust preferred securities are treated as owning beneficial interests in the underlying debt of the operating company.","page_number":101,"box":{"x":68,"y":256,"width":827,"height":12}},{"id":"72dab8eb-3441-4a19-a91a-0f3b15bb1553","block_type":"box","text":"Accordingly, payments on the trust preferred securities are treated as interest rather than dividends for U.S. federal","page_number":101,"box":{"x":68,"y":271,"width":824,"height":12}},{"id":"bc37afef-68b4-4444-b5e9-0a80c6a5f5fb","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":101,"box":{"x":70,"y":286,"width":819,"height":12}},{"id":"d08e6248-85ab-4436-933e-db33921c8f7f","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":101,"box":{"x":69,"y":302,"width":817,"height":11}},{"id":"dc4c38e3-b08e-4909-b4ab-8a1a8a71b7ae","block_type":"box","text":"common shareholders, but would typically be subordinated to other classes of the operating company’s debt.","page_number":101,"box":{"x":69,"y":317,"width":778,"height":11}},{"id":"e2b0d7c5-b66e-4b70-af5c-2e8ae37b74ba","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":101,"box":{"x":68,"y":332,"width":811,"height":11}},{"id":"7764cdfc-4383-42bf-b699-6f9504309753","block_type":"box","text":"debt securities.","page_number":101,"box":{"x":69,"y":347,"width":109,"height":9}},{"id":"36891112-e7fa-4837-86f3-5ccba8d62d73","block_type":"box","text":"Real Estate Investment Trusts (“REITs”).","page_number":101,"box":{"x":102,"y":370,"width":300,"height":11}},{"id":"e2adab8a-95cf-46d4-acde-c687ef31d09c","block_type":"box","text":"In pursuing its investment strategy, a Fund may invest in shares of","page_number":101,"box":{"x":409,"y":370,"width":473,"height":11}},{"id":"20b095c0-1644-4ded-b261-7ee5d0617d2b","block_type":"box","text":"REITs. REITs possess cer tain risks which differ from an investment in common stocks. REITs are financial vehicles","page_number":101,"box":{"x":70,"y":385,"width":814,"height":11}},{"id":"a8063f5b-a3f2-400e-8a03-deff062d3ebc","block_type":"box","text":"that pool investor’s capital to purchase or finance real estate. REITs may concentrate their investments in specific","page_number":101,"box":{"x":68,"y":400,"width":814,"height":11}},{"id":"9fb87afb-8894-4860-afea-6d6df757ec8f","block_type":"box","text":"geographic areas or in specific proper ty types,","page_number":101,"box":{"x":68,"y":415,"width":329,"height":11}},{"id":"9568597a-2804-4a7d-a13a-75f036033eb3","block_type":"box","text":"i.e.","page_number":101,"box":{"x":405,"y":415,"width":20,"height":9}},{"id":"ef1c9b62-22df-4819-bfb3-390016db501c","block_type":"box","text":", hotels, shopping malls, residential complexes and office","page_number":101,"box":{"x":428,"y":415,"width":411,"height":11}},{"id":"b4ecbe50-0f9b-4f52-a47c-021e98cb6e6a","block_type":"box","text":"buildings.","page_number":101,"box":{"x":69,"y":430,"width":66,"height":11}},{"id":"b6811c22-9897-4f17-9943-5a6ee8db236a","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":101,"box":{"x":102,"y":453,"width":768,"height":11}},{"id":"7e50b255-5f26-42a9-bec6-266fc89aae98","block_type":"box","text":"propor tionate share of the costs of the REITs’ operations. There are three general categories of REITs: Equity REITs,","page_number":101,"box":{"x":70,"y":468,"width":824,"height":11}},{"id":"4a950b18-1aea-4f66-91c4-527793467e94","block_type":"box","text":"Mor tgage REITs and Hybrid REITs. Equity REITs invest primarily in direct fee ownership or leasehold ownership of real","page_number":101,"box":{"x":70,"y":483,"width":829,"height":11}},{"id":"3e26e07b-b63c-439c-8bd4-13526e200ff8","block_type":"box","text":"proper ty, which derive most of their income from rents. Mor tgage REITs invest mostly in mor tgages on real estate,","page_number":101,"box":{"x":70,"y":498,"width":813,"height":11}},{"id":"eb043549-fe77-4f89-99a5-7ec6d5df5427","block_type":"box","text":"which may secure construction, development or long-term loans; the main source of their income is mor tgage","page_number":101,"box":{"x":68,"y":513,"width":782,"height":12}},{"id":"8531f850-a411-4786-846e-a28d9296dc10","block_type":"box","text":"interest payments. Hybrid REITs hold both ownership and mor tgage interests in real estate.","page_number":101,"box":{"x":70,"y":529,"width":649,"height":11}},{"id":"df1867c0-8bcc-4f7e-a0e0-c881b57fa707","block_type":"box","text":"Investing in REITs involves cer tain unique risks in addition to those risks associated with investing in the real","page_number":101,"box":{"x":102,"y":551,"width":776,"height":11}},{"id":"22b8f479-633e-4aab-b607-2caee6360ee3","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":101,"box":{"x":69,"y":566,"width":822,"height":11}},{"id":"928258de-9d5c-452d-b614-25c2277251e7","block_type":"box","text":"adversely affected by several factors, including rising interest rates, changes in the national, state and local","page_number":101,"box":{"x":69,"y":581,"width":769,"height":12}},{"id":"41ea2fd1-0226-41bc-ae83-5b9f8efc71b0","block_type":"box","text":"economic climate and real estate conditions, occupancy and rental rates, perceptions of prospective tenants of the","page_number":101,"box":{"x":69,"y":596,"width":822,"height":12}},{"id":"493a73c8-b675-4174-996e-0c4717a0e534","block_type":"box","text":"safety, convenience and attractiveness of the proper ties, the ability of the owners to provide adequate management,","page_number":101,"box":{"x":69,"y":612,"width":831,"height":11}},{"id":"e27b002c-1809-4111-9ca8-f7b8e6fe73f4","block_type":"box","text":"maintenance and insurance, the cost of complying with the Americans with Disabilities Act, increased competition","page_number":101,"box":{"x":69,"y":627,"width":810,"height":11}},{"id":"3c3ed04b-6c6a-41fa-980a-a18e13e62ef8","block_type":"box","text":"from new proper ties, the impact of present or future environmental legislation and compliance with environmental","page_number":101,"box":{"x":68,"y":642,"width":812,"height":11}},{"id":"782e670c-28f5-403e-a829-4be0956dcf37","block_type":"box","text":"laws, failing to maintain their exemptions from registration under the Investment Company Act, changes in real estate","page_number":101,"box":{"x":70,"y":657,"width":838,"height":11}},{"id":"71914e80-269b-409e-b6af-f887568e673e","block_type":"box","text":"taxes and other operating expenses, adverse changes in governmental rules and fiscal policies, adverse changes in","page_number":101,"box":{"x":68,"y":672,"width":826,"height":11}},{"id":"37c439c3-f112-471b-ba99-260608bca2a3","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":101,"box":{"x":69,"y":687,"width":817,"height":11}},{"id":"0f14f925-f628-400d-880f-a44835b29dc3","block_type":"box","text":"REIT are concentrated geographically, by proper ty type, or in cer tain other respects, these risks may be heightened.","page_number":101,"box":{"x":70,"y":703,"width":822,"height":11}},{"id":"bbf497d6-9e0e-4a90-b3a4-99ad3ed7726f","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":101,"box":{"x":70,"y":717,"width":792,"height":12}},{"id":"13731bdb-85c2-4e68-b7b8-89ef791b99f6","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":101,"box":{"x":69,"y":732,"width":834,"height":12}},{"id":"ddfe7dff-8da6-483d-9d8c-2a6c1e71247c","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":101,"box":{"x":69,"y":748,"width":798,"height":11}},{"id":"9ed41f5a-642d-4f2f-b118-79abdd228612","block_type":"box","text":"Fund’s dividend income received from REIT shares will likely exceed the percentage of the Fund’s por tfolio which is","page_number":101,"box":{"x":70,"y":763,"width":818,"height":11}},{"id":"ef8e2912-4eb6-4f01-8ccf-53d98a4d493a","block_type":"box","text":"comprised of REIT shares. Ordinary REIT dividends received by the Fund and distributed to the Fund’s shareholders","page_number":101,"box":{"x":69,"y":778,"width":821,"height":11}},{"id":"c1d65761-4436-48ff-b8ae-ba68a57629ab","block_type":"box","text":"will generally be taxable as ordinary income and will not constitute “qualified dividend income.” However, a non","page_number":101,"box":{"x":68,"y":793,"width":797,"height":11}},{"id":"b7f9cc7d-a3db-4081-bab2-9a12b40d648b","block_type":"box","text":"corporate taxpayer who is a direct REIT shareholder may claim a 20% “qualified business income” deduction for","page_number":101,"box":{"x":69,"y":808,"width":798,"height":11}},{"id":"f9d77993-586a-4c4e-aab1-803f0fcd56d5","block_type":"box","text":"ordinary REIT dividends, and a regulated investment company may repor t dividends as eligible for this deduction to","page_number":101,"box":{"x":69,"y":823,"width":820,"height":12}},{"id":"93c307fb-a0b9-411a-9cad-8760c79b853c","block_type":"box","text":"the extent the regulated investment company’s income is derived from ordinary REIT dividends (reduced by allocable","page_number":101,"box":{"x":68,"y":838,"width":831,"height":12}},{"id":"236c0d8b-0b1a-42b0-a019-47eb1fc1deb6","block_type":"box","text":"regulated investment company expenses). A shareholder may treat the dividends as such provided the regulated","page_number":101,"box":{"x":69,"y":854,"width":801,"height":11}},{"id":"c4ec0490-e3db-45fa-aa7e-611b5eba8d8b","block_type":"box","text":"investment company and the shareholder satisfy applicable holding period requirements.","page_number":101,"box":{"x":70,"y":869,"width":631,"height":11}},{"id":"6865f67e-d6cc-4d96-a762-93ad6aaa44df","block_type":"box","text":"REITs (especially mor tgage REITs) are also subject to interest rate risk. Rising interest rates may cause REIT","page_number":101,"box":{"x":102,"y":891,"width":772,"height":12}},{"id":"584ea5bd-ca0c-4569-ba4f-c65927c23c32","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":101,"box":{"x":70,"y":906,"width":790,"height":12}},{"id":"8144c2df-4a72-49e2-a906-da93608a4d00","block_type":"box","text":"II-66","page_number":101,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e6d7bf96-75a3-4fdd-bfbb-d591397a9682","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":101,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c59745ee-c73a-4101-9b89-8c04c2ac1e1f","block_type":"box","text":"securities issued by a REIT. Rising interest rates also generally increase the costs of obtaining financing, which could","page_number":102,"box":{"x":69,"y":45,"width":834,"height":11}},{"id":"d3e03da4-a1ad-4712-9e73-e3eb0088581c","block_type":"box","text":"cause the value of a Fund’s REIT investments to decline. During periods when interest rates are declining, mor tgages","page_number":102,"box":{"x":69,"y":60,"width":837,"height":11}},{"id":"e81a9ef0-4685-45e4-a102-7df179046e23","block_type":"box","text":"are often refinanced. Refinancing may reduce the yield on investments in mor tgage REITs. In addition, since REITs","page_number":102,"box":{"x":69,"y":75,"width":812,"height":11}},{"id":"19f6f34e-4340-446b-932d-91ea8e49689a","block_type":"box","text":"depend on payment under their mor tgage loans and leases to generate cash to make distributions to their","page_number":102,"box":{"x":69,"y":90,"width":759,"height":11}},{"id":"5d84f681-2b67-43db-8f7b-ce787fded5ba","block_type":"box","text":"shareholders, investments in REITs may be adversely affected by defaults on such mor tgage loans or leases.","page_number":102,"box":{"x":69,"y":105,"width":778,"height":11}},{"id":"5abf8374-4b04-42d6-bb34-047c724b3a3c","block_type":"box","text":"Investing in cer tain REITs, which often have small market capitalizations, may also involve the same risks as","page_number":102,"box":{"x":102,"y":128,"width":773,"height":11}},{"id":"7aca18e0-4c14-460a-a2f3-95c6b8d86cd5","block_type":"box","text":"investing in other small capitalization companies. REITs may have limited financial resources and their securities may","page_number":102,"box":{"x":70,"y":143,"width":836,"height":11}},{"id":"209c1b50-bea5-476f-9bdd-a3b04769b0cb","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":102,"box":{"x":68,"y":158,"width":839,"height":11}},{"id":"e5fd1b58-6914-4137-ab8a-55cf8181b783","block_type":"box","text":"company securities. Historically, small capitalization stocks, such as REITs, have been more volatile in price than the","page_number":102,"box":{"x":69,"y":173,"width":832,"height":11}},{"id":"ea61be95-8fdb-40fc-aa7d-70e68bb0b488","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":102,"box":{"x":70,"y":188,"width":832,"height":12}},{"id":"559ded11-e413-4639-9427-75ecbe9d3d0d","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":102,"box":{"x":68,"y":203,"width":815,"height":12}},{"id":"0ef00c03-f559-4189-90a7-f5e7b842135e","block_type":"box","text":"activities competitive with the REIT. REITs may own proper ties through joint ventures or in other circumstances in","page_number":102,"box":{"x":69,"y":219,"width":804,"height":11}},{"id":"960d2ee8-53f2-4b7a-aa2d-88bda0e7c923","block_type":"box","text":"which the REIT may not have control over its investments. REITs may incur significant amounts of leverage.","page_number":102,"box":{"x":68,"y":234,"width":761,"height":11}},{"id":"8a1ad73c-cf7f-43f5-9663-44facaa6d9aa","block_type":"box","text":"Market Risks/Recent Market Events.","page_number":102,"box":{"x":102,"y":256,"width":275,"height":11}},{"id":"2a231963-0cd5-4666-ae1d-c58fda5487f9","block_type":"box","text":"Securities may decline in value due to factors affecting securities","page_number":102,"box":{"x":383,"y":256,"width":466,"height":12}},{"id":"f0649008-5de8-4dbd-a6d6-08e8cfaa9906","block_type":"box","text":"markets generally or par ticular industries represented in the markets. The value of a security may decline due to","page_number":102,"box":{"x":69,"y":271,"width":801,"height":12}},{"id":"a36e5343-2330-4eee-8b83-878c17e40373","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":102,"box":{"x":68,"y":286,"width":837,"height":12}},{"id":"c0b98a74-a5d0-416e-8761-ccdb2b6a0ba0","block_type":"box","text":"affect a par ticular industry or industries, or factors that affect a par ticular issuer or issuers, exchange, country,","page_number":102,"box":{"x":69,"y":302,"width":795,"height":11}},{"id":"53f331cb-34e0-499b-a8a1-8694c2a33198","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":102,"box":{"x":68,"y":317,"width":796,"height":11}},{"id":"7132ab04-351e-48e7-bee3-61892ae58896","block_type":"box","text":"activities could be affected by interest rates, availability of credit, inflation rates, economic uncer tainty, changes in","page_number":102,"box":{"x":69,"y":332,"width":817,"height":11}},{"id":"222f3493-9509-4db1-806f-9166427ecd04","block_type":"box","text":"laws, trade barriers, economic sanctions, currency exchange controls, and local, regional or global events such as","page_number":102,"box":{"x":70,"y":347,"width":812,"height":11}},{"id":"6440d6a7-0a0d-4ffc-8c5b-07cfc6b1bf42","block_type":"box","text":"war, acts of terrorism, natural and environmental disasters, the spread of infectious illness or other public health","page_number":102,"box":{"x":68,"y":362,"width":807,"height":11}},{"id":"b83260a8-cdcd-4af8-9c1b-7ebc447f2bfb","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":102,"box":{"x":70,"y":377,"width":822,"height":12}},{"id":"c6c2ccb1-a656-4290-a333-eaa1016ba48c","block_type":"box","text":"economic downturn in the securities markets, multiple asset classes may be negatively affected. These factors may","page_number":102,"box":{"x":69,"y":392,"width":828,"height":12}},{"id":"bd030de9-bc21-4949-9315-19699d87c3fa","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":102,"box":{"x":69,"y":407,"width":804,"height":12}},{"id":"5ec67a09-5ee8-4a32-990b-9f19ee6ca604","block_type":"box","text":"Fund’s profitability or result in losses. A Fund may maintain substantial trading positions that can be adversely","page_number":102,"box":{"x":70,"y":423,"width":787,"height":11}},{"id":"149882c4-8bda-46aa-af39-1b5606e5bf10","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":102,"box":{"x":69,"y":438,"width":819,"height":11}},{"id":"8b5c5541-9d0e-4383-88f8-10067da1737a","block_type":"box","text":"Unpredictable or unstable market conditions may result in reduced oppor tunities to find suitable investments to","page_number":102,"box":{"x":70,"y":453,"width":796,"height":11}},{"id":"63f02fcd-26ef-4dac-be48-452cf3354a0d","block_type":"box","text":"deploy capital or make it more difficult to exit and realize value from a Fund’s existing investments. It is impor tant to","page_number":102,"box":{"x":69,"y":468,"width":832,"height":11}},{"id":"cf3564dc-50b1-4a23-b30f-fdbc92e483a4","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":102,"box":{"x":69,"y":483,"width":831,"height":11}},{"id":"70f757cb-11e0-46ce-a03c-1a85004366e5","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":102,"box":{"x":69,"y":498,"width":776,"height":11}},{"id":"a9f84552-f1ef-4bad-a2a4-4ab84d184d97","block_type":"box","text":"conditions.","page_number":102,"box":{"x":69,"y":514,"width":76,"height":8}},{"id":"26ea2719-e172-4642-b201-e5cc17e775c7","block_type":"box","text":"Periods of unusually high volatility in the financial markets and restrictive credit conditions, sometimes limited to","page_number":102,"box":{"x":102,"y":536,"width":802,"height":11}},{"id":"84dd69c1-c70c-4e6c-924b-2f41be94b1e0","block_type":"box","text":"a par ticular sector or a geography, can occur. Some countries, including the United States, have adopted and/or are","page_number":102,"box":{"x":69,"y":551,"width":829,"height":11}},{"id":"488e9240-9270-4e82-beac-bce53736f20a","block_type":"box","text":"considering the adoption of more protectionist trade policies, a move away from the tighter financial industry","page_number":102,"box":{"x":69,"y":566,"width":775,"height":11}},{"id":"a3042e54-9cf7-47fc-af83-adaebbc3e624","block_type":"box","text":"regulations that followed the financial crisis of 2008, and/or substantially reducing corporate taxes. The exact shape","page_number":102,"box":{"x":69,"y":581,"width":833,"height":12}},{"id":"0031e886-02d8-49cd-ab97-6f2c0c18140b","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":102,"box":{"x":69,"y":596,"width":799,"height":12}},{"id":"4f956e9f-aeb0-44b4-9ae2-1d8c7585edd4","block_type":"box","text":"change, which could increase volatility, especially if the market’s expectations are not borne out. A rise in","page_number":102,"box":{"x":69,"y":612,"width":751,"height":11}},{"id":"011aa7d8-e9f8-4954-8041-a2a76ff3caad","block_type":"box","text":"protectionist trade policies, and the possibility of changes to some international trade agreements, could affect the","page_number":102,"box":{"x":70,"y":627,"width":822,"height":11}},{"id":"8ad670c7-1995-4993-bd1a-227657240a1c","block_type":"box","text":"economies of many nations in ways that cannot necessarily be foreseen at the present time. In addition, geopolitical","page_number":102,"box":{"x":69,"y":642,"width":831,"height":11}},{"id":"cdc5462c-488c-4891-8623-f617ca525688","block_type":"box","text":"and other risks, including environmental and public health, may add to instability in world economies and markets","page_number":102,"box":{"x":69,"y":657,"width":810,"height":11}},{"id":"7b3711f0-edf7-4184-8c56-78dec3d49367","block_type":"box","text":"generally. Economies and financial markets throughout the world are increasingly interconnected. As a result, whether","page_number":102,"box":{"x":68,"y":672,"width":841,"height":11}},{"id":"2f527054-4167-4155-9502-bc01cf92ff89","block_type":"box","text":"or not a Fund invests in securities of issuers located in or with significant exposure to countries experiencing","page_number":102,"box":{"x":69,"y":687,"width":775,"height":11}},{"id":"5dec3932-05a3-49fd-b4af-80deb5432e79","block_type":"box","text":"economic, political and/or financial difficulties, the value and liquidity of the Fund’s investments may be negatively","page_number":102,"box":{"x":69,"y":702,"width":818,"height":12}},{"id":"0dcc01a2-8928-40d6-9b4b-86503b474624","block_type":"box","text":"affected by such events.","page_number":102,"box":{"x":69,"y":717,"width":173,"height":12}},{"id":"f8815ba1-f6ee-4ef6-9efd-81b2ec83d7c5","block_type":"box","text":"Governments and regulators may take actions that affect the regulation of the Fund or the instruments in which","page_number":102,"box":{"x":102,"y":740,"width":795,"height":11}},{"id":"a2caf515-bb13-4767-bcf6-d9e7ebca3319","block_type":"box","text":"the Fund invests, or the issuers of such instruments, in ways that are unforeseeable. Future legislation or regulation","page_number":102,"box":{"x":68,"y":755,"width":830,"height":11}},{"id":"50df5da8-e7be-40bd-b7ba-29a212274277","block_type":"box","text":"or other governmental actions could limit or preclude the Fund’s abilities to achieve its investment objectives or","page_number":102,"box":{"x":69,"y":771,"width":796,"height":11}},{"id":"ee83fab9-5b1a-43b6-8b87-a2a269bc492f","block_type":"box","text":"otherwise adversely impact an investment in the Fund. Recent policy initiatives under taken by the U.S. government","page_number":102,"box":{"x":69,"y":786,"width":820,"height":11}},{"id":"6474b756-4960-4cb6-9b6f-72b29ef9b928","block_type":"box","text":"have the potential to impact international relations, trade agreements and the overall regulatory environment in ways","page_number":102,"box":{"x":69,"y":801,"width":833,"height":11}},{"id":"fd15fccb-8edc-442a-875c-1550996470d1","block_type":"box","text":"that could create uncer tainty and instability in domestic and global markets and could adversely affect the","page_number":102,"box":{"x":68,"y":816,"width":759,"height":11}},{"id":"fedd379d-087e-4294-8b25-162341b0f459","block_type":"box","text":"investment per formance of the Fund. In par ticular, actions taken by the U.S. government in respect of international","page_number":102,"box":{"x":70,"y":831,"width":819,"height":11}},{"id":"12451024-6bc7-4a33-891a-0de84a823a16","block_type":"box","text":"trade relations could lead to trade wars, increased costs for impor ted goods, disruptions in supply chains, reduced","page_number":102,"box":{"x":68,"y":846,"width":821,"height":11}},{"id":"4c7c5897-c6fd-4d4c-b72f-ae293df8634b","block_type":"box","text":"foreign investment, and instability in regions where the Fund invests. Political and diplomatic events within the United","page_number":102,"box":{"x":68,"y":861,"width":837,"height":11}},{"id":"2ca6fbe0-56a0-4ed3-8f5f-48d934737429","block_type":"box","text":"States, including a contentious domestic political environment, changes in political par ty control of one or more","page_number":102,"box":{"x":69,"y":876,"width":795,"height":11}},{"id":"530650a9-5bdc-4983-a1ef-6438465d8c27","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":102,"box":{"x":69,"y":891,"width":836,"height":12}},{"id":"7439dc09-7fd0-4054-951d-c409ddce60b2","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":102,"box":{"x":69,"y":906,"width":817,"height":12}},{"id":"01fccfd0-5e8d-46d2-a032-d79744ed3c60","block_type":"box","text":"II-67","page_number":102,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"c009cdea-7e1d-42ba-b0cf-1421212e3b46","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":102,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c966c657-5dca-401d-8259-d8ac69af5953","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":103,"box":{"x":70,"y":45,"width":816,"height":11}},{"id":"67f0186c-c6bf-412c-85d5-4d08026ba9ed","block_type":"box","text":"investor and consumer confidence and may adversely impact financial markets and the broader economy, perhaps","page_number":103,"box":{"x":70,"y":60,"width":813,"height":11}},{"id":"dc21b44d-61c0-4f6e-bd7d-6320e2a9bcb7","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":103,"box":{"x":69,"y":75,"width":815,"height":11}},{"id":"8881e7e7-1c9f-4dd7-abef-9f905b580974","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":103,"box":{"x":69,"y":90,"width":836,"height":11}},{"id":"b44196ef-b554-4500-9764-ee0f347bc5ff","block_type":"box","text":"economies. For example, concerns about the U.S. Government’s credit quality may cause increased volatility in the","page_number":103,"box":{"x":69,"y":105,"width":820,"height":11}},{"id":"c2fd79f2-d3cb-4f86-8c48-e285b8d3a4d0","block_type":"box","text":"stock and bond markets, higher interest rates, reduced prices and liquidity of U.S. Treasury securities, and/or","page_number":103,"box":{"x":69,"y":120,"width":785,"height":12}},{"id":"e847c3fd-6719-4bad-833f-129cd3821d85","block_type":"box","text":"increased costs of various kinds of debt. Moreover, although the U.S. Government has honored its credit obligations,","page_number":103,"box":{"x":70,"y":135,"width":832,"height":12}},{"id":"c6dc2bb8-a1e8-4268-b88f-2e03a867aabd","block_type":"box","text":"there remains a possibility that the United States could default on its obligations. The consequences of such an","page_number":103,"box":{"x":68,"y":150,"width":799,"height":12}},{"id":"9ff2ac56-30c1-48ae-91b5-a0a318ea00a9","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":103,"box":{"x":69,"y":166,"width":802,"height":11}},{"id":"a3a81ef1-744e-46cd-ae34-c8804bfb1489","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":103,"box":{"x":69,"y":181,"width":746,"height":11}},{"id":"97f1665b-4ddd-422a-81f9-fa9000ffbbf1","block_type":"box","text":"investments.","page_number":103,"box":{"x":70,"y":196,"width":89,"height":9}},{"id":"c6724b33-9d2b-440f-b4bd-6e30e073dd62","block_type":"box","text":"The COVID-19 pandemic resulted in significant market volatility, exchange suspensions and closures, declines in","page_number":103,"box":{"x":101,"y":218,"width":802,"height":12}},{"id":"07378635-255b-43af-a4e4-958078d21602","block_type":"box","text":"global financial markets, higher default rates, supply chain disruptions, and a substantial economic downturn in","page_number":103,"box":{"x":68,"y":234,"width":796,"height":11}},{"id":"c56b8905-54c8-48b9-a34c-840328a2a45d","block_type":"box","text":"economies throughout the world. The impact of this coronavirus, and other epidemics and pandemics that may arise","page_number":103,"box":{"x":69,"y":249,"width":830,"height":11}},{"id":"74f92cc3-3737-4049-bcf4-50b94d6b53d0","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":103,"box":{"x":70,"y":264,"width":813,"height":11}},{"id":"ca063657-3ea5-46a2-a198-d440120cd142","block_type":"box","text":"that cannot necessarily be foreseen at the present time. These health crises may be shor t term or long term, and","page_number":103,"box":{"x":68,"y":279,"width":812,"height":11}},{"id":"0c5bb0c0-14a9-44a0-8dda-0c9f9e09afc9","block_type":"box","text":"may exacerbate other pre-existing political, social and economic risks, disrupt normal market conditions and","page_number":103,"box":{"x":69,"y":294,"width":771,"height":11}},{"id":"351b8531-c8a9-459f-8d0d-3906be6ee56b","block_type":"box","text":"operations, and negatively impact per formance. In addition, the impact of infectious diseases in emerging developing","page_number":103,"box":{"x":69,"y":309,"width":837,"height":11}},{"id":"c3afddff-a77f-41dd-99da-324104fcb1d2","block_type":"box","text":"or emerging market countries may be greater due to less established health care systems.","page_number":103,"box":{"x":69,"y":325,"width":646,"height":11}},{"id":"39e35046-0aaf-4f25-adf8-b1abb884b839","block_type":"box","text":"Legal and Regulatory Risks.","page_number":103,"box":{"x":102,"y":347,"width":197,"height":11}},{"id":"7aa16f11-f748-4b19-a305-0bdeac9cdfb3","block_type":"box","text":"The Manager is par t of a larger firm with multiple business lines active in multiple","page_number":103,"box":{"x":305,"y":347,"width":583,"height":11}},{"id":"ba00a786-4c7b-4373-9d7e-1de410ea7a34","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":103,"box":{"x":67,"y":362,"width":819,"height":11}},{"id":"c67b10e5-c124-43ae-91b0-a08bec99c417","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":103,"box":{"x":69,"y":377,"width":820,"height":12}},{"id":"b58f42d2-f199-4648-adfa-5abfc0b986d3","block_type":"box","text":"tax and regulatory risks, including changing laws and regulations, developing interpretations of such laws and","page_number":103,"box":{"x":68,"y":392,"width":781,"height":12}},{"id":"f7f69d15-92bc-4aa2-8395-c88dde0b7ded","block_type":"box","text":"regulations, as well as existing laws, and increased scrutiny by regulators and law enforcement authorities.","page_number":103,"box":{"x":69,"y":407,"width":763,"height":12}},{"id":"787b3fad-da80-4fc9-b256-96b92b91b4dc","block_type":"box","text":"Unexpected economic, political, regulatory and diplomatic events within the United States and abroad can trigger new","page_number":103,"box":{"x":70,"y":423,"width":838,"height":11}},{"id":"7726abd6-420a-4b68-ad11-2b6b60f575f2","block_type":"box","text":"and complex regulations that the Manager and/or the Funds may need to comply with. The implementation of","page_number":103,"box":{"x":69,"y":438,"width":781,"height":11}},{"id":"dd42c2e5-e6c8-493e-88c1-84814173ff0d","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":103,"box":{"x":69,"y":453,"width":807,"height":11}},{"id":"dedb539d-bb0a-4c6e-94b2-d6a96b80f133","block_type":"box","text":"material adverse effect on the Funds (including by imposing material costs on the Funds, reducing profit margins,","page_number":103,"box":{"x":69,"y":468,"width":807,"height":11}},{"id":"bc88e00e-95e9-4a7b-a04f-38f87c08429d","block_type":"box","text":"reducing investment oppor tunities or by otherwise restricting the Funds and/or the Manager).","page_number":103,"box":{"x":69,"y":483,"width":666,"height":11}},{"id":"0810d057-107b-45b8-8d04-ee091b13e5ef","block_type":"box","text":"Tariff and Trade Policy Risks.","page_number":103,"box":{"x":103,"y":506,"width":202,"height":11}},{"id":"1bfb629e-9341-4c8e-9cbc-e9fda9140232","block_type":"box","text":"Some countries, including the U.S., have adopted more protectionist trade policies.","page_number":103,"box":{"x":312,"y":506,"width":593,"height":11}},{"id":"45f2a64d-ce22-4f7f-8fb0-06f0bc38f6cc","block_type":"box","text":"The U.S. government recently altered its approach to international trade policy, resulting in significant impacts on","page_number":103,"box":{"x":68,"y":521,"width":806,"height":11}},{"id":"34c4fe43-2e8d-4a10-aae9-abd1cefb53fe","block_type":"box","text":"international trade relations, cer tain tax and immigration policies, and other aspects of the national and international","page_number":103,"box":{"x":70,"y":536,"width":833,"height":11}},{"id":"3a9c3526-a039-440d-af75-96dce878e07e","block_type":"box","text":"political and financial landscape. The rise in protectionist trade policies, slowing economic growth, changes to some","page_number":103,"box":{"x":70,"y":551,"width":827,"height":11}},{"id":"6cc6d262-9b29-4c36-8f61-1c5cf75dcad3","block_type":"box","text":"major international trade agreements, risks associated with trade agreements between the U.S. and the European","page_number":103,"box":{"x":69,"y":566,"width":814,"height":11}},{"id":"ff64e574-b351-4392-a5fc-616aed41aff4","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":103,"box":{"x":70,"y":581,"width":821,"height":12}},{"id":"aec1cc1d-49b8-4f3a-a32e-abf70e1f6279","block_type":"box","text":"many nations in ways that cannot necessarily be foreseen at the present time.","page_number":103,"box":{"x":69,"y":596,"width":559,"height":12}},{"id":"19be43a1-90b1-4df5-bb4d-859bb6265735","block_type":"box","text":"Global trade disruption, significant introductions of trade barriers, and bilateral trade frictions, together with any","page_number":103,"box":{"x":102,"y":619,"width":796,"height":11}},{"id":"0c66a553-40d3-4798-a40b-3f2c40118eb3","block_type":"box","text":"future downturns in the global economy resulting therefrom, could adversely affect the financial per formance of a","page_number":103,"box":{"x":68,"y":634,"width":809,"height":12}},{"id":"ace32065-efa0-44b4-a883-7b5ece2283cb","block_type":"box","text":"Fund and its investments. Trade policy may be an ongoing source of instability, potentially resulting in significant","page_number":103,"box":{"x":70,"y":649,"width":799,"height":12}},{"id":"c8020c93-aa88-41ef-847d-9b5cde4a9254","block_type":"box","text":"currency fluctuations and/or having other adverse effects on international markets, international trade agreements,","page_number":103,"box":{"x":69,"y":664,"width":823,"height":12}},{"id":"eabe78a0-5874-4353-82b6-2ba9dbe347a3","block_type":"box","text":"and/or other existing cross-border cooperation arrangements (whether economic, tax, fiscal, legal, regulatory, or","page_number":103,"box":{"x":69,"y":680,"width":801,"height":11}},{"id":"c115ae13-8868-4c22-8a4a-11e52c169b11","block_type":"box","text":"otherwise). To the extent trade disputes escalate globally, there could be additional significant impacts on the","page_number":103,"box":{"x":69,"y":695,"width":783,"height":11}},{"id":"0753f0db-0ea2-4f4a-a4dd-7fde2ced2495","block_type":"box","text":"sectors or industries in which a Fund invests and other adverse impacts on a Fund’s overall per formance.","page_number":103,"box":{"x":69,"y":710,"width":753,"height":11}},{"id":"8e57f3fb-5c19-40f8-a950-69b55754d0cf","block_type":"box","text":"Geographic Risks","page_number":103,"box":{"x":102,"y":733,"width":123,"height":11}},{"id":"ba1a66b4-a0ea-416d-8524-106247a4bf83","block_type":"box","text":". Some of the companies in which the Fund invests may be located in, or otherwise connected","page_number":103,"box":{"x":226,"y":732,"width":671,"height":12}},{"id":"1fdd19e6-68ed-41f9-b4c3-66712a3ebb71","block_type":"box","text":"to, par ts of the world affected by natural disasters such as severe heat, ear thquakes, tornadoes, volcanic eruptions,","page_number":103,"box":{"x":68,"y":748,"width":835,"height":11}},{"id":"93d2787f-5593-4744-8e9d-6d04d7441b3a","block_type":"box","text":"wildfires, droughts, floods, hurricanes or tsunamis, and are economically sensitive to environmental events. In","page_number":103,"box":{"x":68,"y":763,"width":787,"height":11}},{"id":"a1774de7-cdb0-4578-ae0c-28021b645506","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":103,"box":{"x":69,"y":778,"width":814,"height":11}},{"id":"6268096c-b6e3-4a8a-9237-1e16cbb6b413","block_type":"box","text":"types of conflict, terrorism, strained international relations and territorial disputes. Any of these events may adversely","page_number":103,"box":{"x":68,"y":793,"width":840,"height":11}},{"id":"4cc9df3d-ac4f-4d5f-bce1-63a75fa7c3cc","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":103,"box":{"x":69,"y":808,"width":824,"height":11}},{"id":"d3061af0-4fa8-4ec4-b53c-28675111b3eb","block_type":"box","text":"Fund.","page_number":103,"box":{"x":70,"y":823,"width":36,"height":9}},{"id":"d97e4ea6-d3b3-41c8-a968-c804af03268d","block_type":"box","text":"Reference Rate Replacement Risk.","page_number":103,"box":{"x":102,"y":846,"width":255,"height":11}},{"id":"755a8af4-8947-4b4a-baf8-56dcec9567e9","block_type":"box","text":"A Fund’s investments, payment obligations and financing terms may be","page_number":103,"box":{"x":363,"y":846,"width":508,"height":11}},{"id":"1ce63283-b06d-448d-b777-aedeb5f269d1","block_type":"box","text":"based on floating rates, such as the Secured Overnight Financing Rate (“SOFR”), Sterling Overnight Interbank Average","page_number":103,"box":{"x":69,"y":861,"width":839,"height":11}},{"id":"6a35782f-6d87-427c-96c9-71936211e067","block_type":"box","text":"Rate (“SONIA”), and other similar types of reference rates (“Reference Rates”). The elimination of a Reference Rate","page_number":103,"box":{"x":70,"y":876,"width":825,"height":11}},{"id":"949ad082-eee3-4b95-b8a7-edad274003ad","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":103,"box":{"x":69,"y":891,"width":797,"height":12}},{"id":"388067c3-101c-47a8-b902-9a33cedc4f55","block_type":"box","text":"impact on the market for, or value of, any instruments (including debt instruments and cer tain derivative instruments)","page_number":103,"box":{"x":70,"y":906,"width":837,"height":12}},{"id":"d6becd9b-ccdd-4ad0-8ba3-a9c009d9e734","block_type":"box","text":"II-68","page_number":103,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d4bb25d7-b3bf-4546-9ef4-32ae55ce2e8f","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":103,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c6f7ba7c-adda-406a-b15b-5937f34bc274","block_type":"box","text":"or payments linked to those Reference Rates. In addition, any substitute Reference Rate and any pricing adjustments","page_number":104,"box":{"x":69,"y":45,"width":837,"height":11}},{"id":"f62a8cfd-3cf3-438c-9753-ad5fd3c58ad5","block_type":"box","text":"imposed by a regulator or by counterpar ties or otherwise may adversely affect a Fund’s per formance and/or net","page_number":104,"box":{"x":70,"y":60,"width":800,"height":11}},{"id":"49191b28-de4e-4fb1-88fe-98ab6f973ef9","block_type":"box","text":"asset value. The London Interbank Offered Rate (“LIBOR”) had historically been used extensively in the U.S. and","page_number":104,"box":{"x":69,"y":75,"width":800,"height":11}},{"id":"4be4493c-99b2-4198-8106-4243c914d6bd","block_type":"box","text":"globally as a “benchmark” or “reference rate” for various commercial and financial contracts, including corporate and","page_number":104,"box":{"x":68,"y":90,"width":836,"height":11}},{"id":"17112e1e-9c71-45d9-8312-b2ffe9a512b6","block_type":"box","text":"municipal bonds, bank loans, asset-backed and mor tgage-related securities, interest rate swaps and other","page_number":104,"box":{"x":69,"y":105,"width":761,"height":11}},{"id":"876c8f9e-1f4e-45f9-b6af-3a147a003b18","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":104,"box":{"x":69,"y":120,"width":824,"height":12}},{"id":"10bedfcf-4206-458f-b1fd-e6d8efd78d08","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":104,"box":{"x":69,"y":135,"width":825,"height":11}},{"id":"16f6a9c8-9700-4258-8762-7c7a508ba91e","block_type":"box","text":"invests may have also historically obtained financing at floating rates based on LIBOR. In connection with the global","page_number":104,"box":{"x":70,"y":150,"width":822,"height":12}},{"id":"ddde4655-fc14-408e-9f8f-20fe5f89da98","block_type":"box","text":"transition away from LIBOR led by regulators and market par ticipants as a result of benchmark reforms, LIBOR was","page_number":104,"box":{"x":68,"y":166,"width":822,"height":11}},{"id":"712f8218-5dbd-4407-8cb0-cce0f9468e95","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":104,"box":{"x":70,"y":181,"width":817,"height":11}},{"id":"b446af0a-db1e-4409-8dd3-0a98a68a7f5e","block_type":"box","text":"established in most major currencies and markets in these alternative rates are continuing to develop (","page_number":104,"box":{"x":69,"y":196,"width":736,"height":11}},{"id":"850e2ec8-301b-4595-bd34-85105599fbc7","block_type":"box","text":"e.g.","page_number":104,"box":{"x":807,"y":197,"width":25,"height":10}},{"id":"31b56282-47e3-4d8a-b9b2-0efab45b874a","block_type":"box","text":", SOFR for","page_number":104,"box":{"x":835,"y":196,"width":70,"height":10}},{"id":"98d13667-7d0f-437b-9a8b-bdc9a5448074","block_type":"box","text":"USD-LIBOR and SONIA for GBP-LIBOR). While the transition from LIBOR has gone relatively smoothly, residual risks","page_number":104,"box":{"x":70,"y":211,"width":814,"height":11}},{"id":"e750ae51-e0ea-4964-a72a-486acf35b530","block_type":"box","text":"associated with the transition may remain that may impact markets or par ticular investments and, as such, the full","page_number":104,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"aa548b4a-080c-442e-891c-79827ff6e459","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":104,"box":{"x":70,"y":241,"width":784,"height":11}},{"id":"95f782db-934d-499f-b37d-cfb64e13024e","block_type":"box","text":"determined.","page_number":104,"box":{"x":69,"y":257,"width":84,"height":8}},{"id":"3f0131fc-fb3a-45da-acb3-f83c273256d5","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":104,"box":{"x":102,"y":279,"width":750,"height":11}},{"id":"2bb3cf0d-5afd-4acd-ab47-af1afb39a5f3","block_type":"box","text":"collateralized by U.S. Treasury securities. SOFR is calculated based on transaction-level repo data collected from","page_number":104,"box":{"x":69,"y":294,"width":803,"height":11}},{"id":"652b99c9-e1c2-4f54-a57b-3560da215401","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":104,"box":{"x":68,"y":309,"width":831,"height":11}},{"id":"ac7e7b1f-8162-46b6-a51e-5cd5add7a5ef","block_type":"box","text":"Because SOFR is a financing rate based on overnight secured funding transactions, it differs fundamentally from","page_number":104,"box":{"x":70,"y":324,"width":801,"height":12}},{"id":"5d9810c2-bebf-4377-b7b4-cbc6a7a11ddf","block_type":"box","text":"LIBOR. LIBOR is intended to be an unsecured rate that represents interbank funding costs for different shor t-term","page_number":104,"box":{"x":70,"y":339,"width":810,"height":12}},{"id":"c001bb70-3a9c-44b0-b43f-41b2bd0040aa","block_type":"box","text":"maturities or tenors. It is a forward-looking rate reflecting expectations regarding interest rates for the applicable","page_number":104,"box":{"x":69,"y":355,"width":803,"height":11}},{"id":"61b8e6f9-b330-491b-940d-1301880acb50","block_type":"box","text":"tenor. Thus, LIBOR is intended to be sensitive, in cer tain respects, to bank credit risk and to term interest rate risk.","page_number":104,"box":{"x":68,"y":370,"width":825,"height":11}},{"id":"7bd309d7-4636-4860-bae9-28757cd26760","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":104,"box":{"x":70,"y":385,"width":828,"height":11}},{"id":"d4d3e049-133c-427f-8a76-5405da0a0c44","block_type":"box","text":"largely insensitive to credit-risk considerations and to shor t-term interest rate risks. SOFR is a transaction-based rate,","page_number":104,"box":{"x":70,"y":400,"width":838,"height":11}},{"id":"c7e3af7b-3e38-4fa5-9254-4671097a1f2f","block_type":"box","text":"and it has been more volatile than other benchmark or market rates, such as three-month LIBOR, during cer tain","page_number":104,"box":{"x":69,"y":415,"width":796,"height":11}},{"id":"df311368-8122-4d13-ab6c-c68b0b6abb99","block_type":"box","text":"periods. For these reasons, among others, there is no assurance that SOFR, or rates derived from SOFR, will per form","page_number":104,"box":{"x":70,"y":430,"width":836,"height":11}},{"id":"b81fabea-a37f-488b-b9b8-a15c8c45cf80","block_type":"box","text":"in the same or similar way as LIBOR would have per formed at any time, and there is no assurance that SOFR-based","page_number":104,"box":{"x":70,"y":445,"width":824,"height":11}},{"id":"b10fc71d-d358-4e93-a929-648b406184f4","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":104,"box":{"x":69,"y":460,"width":830,"height":12}},{"id":"b702c9df-6dab-47db-afd7-089bad7d8354","block_type":"box","text":"2018. The future per formance of SOFR, and SOFR-based Reference Rates, cannot be predicted based on SOFR’s","page_number":104,"box":{"x":69,"y":475,"width":809,"height":11}},{"id":"8b77da5a-f20f-425c-b972-5a9b05217b7b","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":104,"box":{"x":69,"y":491,"width":827,"height":11}},{"id":"875e14a8-fe3f-47b9-a03c-33d05579c4eb","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":104,"box":{"x":69,"y":506,"width":835,"height":11}},{"id":"a77e2082-aaa0-4bec-a34e-e011ae393a43","block_type":"box","text":"that is materially adverse to the interests of the Fund.","page_number":104,"box":{"x":68,"y":521,"width":384,"height":11}},{"id":"778233e2-5cbe-4d7d-9949-4c01096f2840","block_type":"box","text":"In addition, interest rates or other types of rates and indices which are classified as “benchmarks” have been","page_number":104,"box":{"x":102,"y":543,"width":782,"height":12}},{"id":"68b8e10d-091a-440c-8fcc-9c8450b5857e","block_type":"box","text":"the subject of ongoing national and international regulatory reform, including under the European Union (“EU”)","page_number":104,"box":{"x":68,"y":559,"width":786,"height":11}},{"id":"7eb29da1-dbfd-4444-959b-1d689790c85e","block_type":"box","text":"regulation on indices used as benchmarks in financial instruments and financial contracts (known as the","page_number":104,"box":{"x":69,"y":574,"width":746,"height":11}},{"id":"05b1dcdd-9a81-4e1d-80ba-9e276b1608d7","block_type":"box","text":"“Benchmarks Regulation”). The Benchmarks Regulation has been enacted into United Kingdom (“UK”) law by vir tue","page_number":104,"box":{"x":70,"y":589,"width":822,"height":11}},{"id":"80b1fdd8-7e86-40a5-bd0d-cfad51154ec4","block_type":"box","text":"of the EU (Withdrawal) Act 2018 (as amended), subject to amendments made by the Benchmarks (Amendment and","page_number":104,"box":{"x":69,"y":604,"width":821,"height":11}},{"id":"39c127c5-2522-43fc-96e5-8d540282cb0e","block_type":"box","text":"Transitional Provision) (EU Exit) Regulations 2019 (SI 2019/657) and other statutory instruments. Following the","page_number":104,"box":{"x":68,"y":619,"width":799,"height":11}},{"id":"e75b38a2-860c-40e1-9b09-8dfad68dbb9d","block_type":"box","text":"implementation of these reforms, the manner of administration of benchmarks has changed and may fur ther change","page_number":104,"box":{"x":70,"y":634,"width":830,"height":12}},{"id":"26f6b402-d408-4d3a-a5bb-430d923a2e21","block_type":"box","text":"in the future, with the result that relevant benchmarks may per form differently than in the past, the use of","page_number":104,"box":{"x":70,"y":649,"width":757,"height":12}},{"id":"fea3c525-e2ea-4596-ae36-e969fb5bebd8","block_type":"box","text":"benchmarks that are not compliant with the new standards by cer tain supervised entities may be restricted, and","page_number":104,"box":{"x":69,"y":665,"width":802,"height":11}},{"id":"781e9f86-044b-42da-8b82-997613d17143","block_type":"box","text":"cer tain benchmarks may be eliminated entirely. Such changes could cause increased market volatility and disruptions","page_number":104,"box":{"x":69,"y":680,"width":840,"height":11}},{"id":"25da7c06-3a25-4daa-8f27-1a14d446710b","block_type":"box","text":"in liquidity for instruments that rely on or are impacted by such benchmarks. Additionally, there could be other","page_number":104,"box":{"x":70,"y":695,"width":782,"height":11}},{"id":"879193b2-c879-455e-9ef6-da842340ecf4","block_type":"box","text":"consequences which cannot be predicted.","page_number":104,"box":{"x":69,"y":710,"width":298,"height":11}},{"id":"f9ff3258-0e83-42b9-aede-9a187abecc45","block_type":"box","text":"Repurchase Agreements and Purchase and Sale Contracts.","page_number":104,"box":{"x":102,"y":733,"width":432,"height":11}},{"id":"f49f94db-1d45-4c8b-9c5a-073b94b79e8a","block_type":"box","text":"Under repurchase agreements and purchase and","page_number":104,"box":{"x":541,"y":733,"width":347,"height":11}},{"id":"a037b903-28ad-4116-87e1-b56eac2ac649","block_type":"box","text":"sale contracts, the other par ty agrees, upon entering into the contract with a Fund, to repurchase a security sold to","page_number":104,"box":{"x":69,"y":748,"width":821,"height":11}},{"id":"30276d5b-4451-4aff-8357-1cbd951d6ef3","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":104,"box":{"x":68,"y":763,"width":815,"height":11}},{"id":"045e09cf-ba16-4325-98e2-75203f6d93cb","block_type":"box","text":"term of the agreement.","page_number":104,"box":{"x":68,"y":778,"width":164,"height":11}},{"id":"4f6ff6af-ef06-449f-aef8-3afd065925a5","block_type":"box","text":"A purchase and sale contract differs from a repurchase agreement in that the contract arrangements stipulate","page_number":104,"box":{"x":101,"y":801,"width":788,"height":11}},{"id":"22a91ac2-76d4-4e59-b1ff-13a2c0bf3ee6","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":104,"box":{"x":68,"y":816,"width":831,"height":11}},{"id":"071bc2e3-bd6f-443d-9734-ec830463868e","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":104,"box":{"x":70,"y":831,"width":821,"height":11}},{"id":"f5c80b5d-b4e9-4eed-9e1e-5eeea29cbd53","block_type":"box","text":"on the underlying obligation; whereas, in the case of purchase and sale contracts, the prices take into account","page_number":104,"box":{"x":69,"y":846,"width":790,"height":11}},{"id":"bee9dddb-5d48-4847-863d-49fb53fff0db","block_type":"box","text":"accrued interest. A Fund may enter into “tri-par ty” repurchase agreements. In “tri-par ty” repurchase agreements, an","page_number":104,"box":{"x":69,"y":861,"width":827,"height":11}},{"id":"47a5f538-b9cf-40af-ad40-6720cb7aa56a","block_type":"box","text":"unaffiliated third-par ty custodian maintains accounts to hold collateral for the Fund and its counterpar ties and,","page_number":104,"box":{"x":69,"y":876,"width":788,"height":11}},{"id":"26b2a14f-fb9b-487a-86da-3df24ad3a40b","block_type":"box","text":"therefore, the Fund may be subject to the credit risk of those custodians.","page_number":104,"box":{"x":68,"y":891,"width":522,"height":11}},{"id":"d5df787a-36a5-4cfe-9cd1-250e37b67455","block_type":"box","text":"II-69","page_number":104,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"abd3ec96-a5d3-4d7c-9f88-668276c058d3","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":104,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"970e7863-30dc-460c-a7f1-be8268bbe4ed","block_type":"box","text":"Some repurchase agreements and purchase and sale contracts are structured to result in a fixed rate of return","page_number":105,"box":{"x":102,"y":45,"width":792,"height":11}},{"id":"a26a6646-08c7-4b11-a80d-3376bb98935a","block_type":"box","text":"insulated from market fluctuations during the term of the agreement, although such return may be affected by","page_number":105,"box":{"x":70,"y":60,"width":784,"height":11}},{"id":"dcb58186-4a09-47e5-a4ee-13b98dd1aaee","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":105,"box":{"x":69,"y":75,"width":837,"height":11}},{"id":"53834911-753c-4b48-9b57-a668c544831a","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":105,"box":{"x":69,"y":90,"width":812,"height":11}},{"id":"7b95aee1-03f9-40dc-a8df-e294594b5a7a","block_type":"box","text":"fluctuations of the market values of the securities underlying the contract and the accrued interest on those","page_number":105,"box":{"x":68,"y":105,"width":770,"height":11}},{"id":"d67e757a-6409-4014-a113-f97126e97609","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":105,"box":{"x":69,"y":120,"width":802,"height":12}},{"id":"1fb5596d-f985-4a70-a429-d33c922689c5","block_type":"box","text":"losses arising from market fluctuations following the default.","page_number":105,"box":{"x":70,"y":135,"width":430,"height":12}},{"id":"e0bc6b2b-b5ef-4bcc-829e-bc2f0910e4b5","block_type":"box","text":"Both types of agreement usually cover shor t periods, such as less than one week, although they may have","page_number":105,"box":{"x":102,"y":158,"width":759,"height":11}},{"id":"9ba8e233-dccf-47a7-9dab-e598f46cba5e","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":105,"box":{"x":70,"y":173,"width":765,"height":11}},{"id":"ba3c0630-380c-48bd-b6e8-8a06b1a264bd","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":105,"box":{"x":69,"y":188,"width":835,"height":12}},{"id":"46c5bc7b-2dae-470b-8252-8352b5150c1f","block_type":"box","text":"sub-adviser will monitor the creditwor thiness of the seller, and a Fund will require the seller to provide additional","page_number":105,"box":{"x":69,"y":203,"width":799,"height":11}},{"id":"d05f35ab-1086-479f-904c-4d74601a448a","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":105,"box":{"x":69,"y":218,"width":801,"height":12}},{"id":"120dad77-4973-451e-a2a5-a1db493602e5","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":105,"box":{"x":69,"y":234,"width":826,"height":11}},{"id":"65b169fa-1e9e-4dad-8b97-1d320ce9491a","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":105,"box":{"x":70,"y":249,"width":831,"height":11}},{"id":"fd530e17-77c5-41fb-b7b9-fd218d6d3d4b","block_type":"box","text":"Securities subject to repurchase agreements (other than tri-par ty repurchase agreements) and purchase and sale","page_number":105,"box":{"x":69,"y":264,"width":810,"height":11}},{"id":"90c800ea-bcf8-4f8c-b132-2e5246dee9a3","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":105,"box":{"x":69,"y":279,"width":829,"height":11}},{"id":"0da62a17-b31b-4aa3-8a26-1dcf863285e4","block_type":"box","text":"or by another authorized securities depository.","page_number":105,"box":{"x":69,"y":294,"width":329,"height":11}},{"id":"e504ed03-4695-4658-a132-1c62f77ea1dc","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":105,"box":{"x":102,"y":317,"width":770,"height":11}},{"id":"3965040d-6fc0-40f8-aa58-cf352427feea","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":105,"box":{"x":69,"y":332,"width":805,"height":11}},{"id":"a41b8161-8148-486b-bd98-42c039741551","block_type":"box","text":"repurchase price. Therefore, the Fund may suffer time delays and incur costs or possible losses in connection with","page_number":105,"box":{"x":69,"y":347,"width":819,"height":11}},{"id":"82b1bbc5-920f-437b-a802-f3eb03cb1d9b","block_type":"box","text":"disposition of the collateral. If the seller becomes insolvent and subject to liquidation or reorganization under","page_number":105,"box":{"x":69,"y":362,"width":778,"height":11}},{"id":"ff918b9d-e101-400f-bfe8-63844f7210ad","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":105,"box":{"x":69,"y":377,"width":832,"height":12}},{"id":"2ff95967-1a39-40bc-b2f4-84b4f7d9c35d","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":105,"box":{"x":70,"y":393,"width":810,"height":11}},{"id":"c3fc6a02-898e-4e68-abfb-40a873d487df","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":105,"box":{"x":69,"y":408,"width":812,"height":11}},{"id":"5e880ae9-49c3-4bf9-80ca-c677b27b5d93","block_type":"box","text":"amount at least equal to the repurchase price, including accrued interest. If the seller fails to repurchase the","page_number":105,"box":{"x":69,"y":423,"width":778,"height":11}},{"id":"c7f71e31-bf90-462b-874b-9011e4df40fa","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":105,"box":{"x":69,"y":438,"width":817,"height":11}},{"id":"b2ea4fcb-8462-4d96-a742-76df650f0eb0","block_type":"box","text":"the repurchase price.","page_number":105,"box":{"x":68,"y":453,"width":151,"height":11}},{"id":"e63d4488-cf69-48bb-9bc7-828008448a6d","block_type":"box","text":"In any repurchase transaction to which a Fund is a par ty, collateral for a repurchase agreement may include cash","page_number":105,"box":{"x":102,"y":475,"width":805,"height":12}},{"id":"a2d5ee23-3e2a-47b6-a6e0-2b4b58bda965","block_type":"box","text":"items and obligations issued by the U.S. Government or its agencies or instrumentalities. For cer tain Funds, however,","page_number":105,"box":{"x":70,"y":491,"width":837,"height":11}},{"id":"5a1d0fd4-944b-423d-ac65-92cb7e4621be","block_type":"box","text":"collateral may include instruments other than cash items and obligations issued by the U.S. Government or its","page_number":105,"box":{"x":69,"y":506,"width":788,"height":11}},{"id":"20cc9396-595b-403f-8fee-dd3dca4c0efd","block_type":"box","text":"agencies or instrumentalities, including securities that the Fund could not hold directly under its investment","page_number":105,"box":{"x":69,"y":521,"width":767,"height":11}},{"id":"cd9301e7-f263-4d6f-82d9-f07a5854def9","block_type":"box","text":"strategies without the repurchase obligation.","page_number":105,"box":{"x":69,"y":536,"width":317,"height":11}},{"id":"1d4866e1-481c-4166-a2ef-c503ab3e9dfe","block_type":"box","text":"The type of collateral underlying repurchase agreements may also pose cer tain risks for a Fund. Lower quality","page_number":105,"box":{"x":101,"y":559,"width":782,"height":11}},{"id":"267a1755-01fa-441b-97d3-44b194850ef5","block_type":"box","text":"collateral and collateral with longer maturities may be subject to greater price fluctuations than higher quality","page_number":105,"box":{"x":69,"y":574,"width":776,"height":11}},{"id":"98195e5f-0964-420f-8bc4-da762f0892aa","block_type":"box","text":"collateral and collateral with shor ter maturities. If the repurchase agreement counterpar ty were to default, lower","page_number":105,"box":{"x":69,"y":589,"width":799,"height":11}},{"id":"72605691-d77f-49ff-962e-d06859546309","block_type":"box","text":"quality collateral may be more difficult to liquidate than higher quality collateral. Should the counterpar ty default and","page_number":105,"box":{"x":69,"y":604,"width":829,"height":11}},{"id":"8ba8603f-2f11-4e0b-9aff-c00fc6e00153","block_type":"box","text":"the amount of collateral not be sufficient to cover the counterpar ty’s repurchase obligation, a Fund would retain the","page_number":105,"box":{"x":68,"y":619,"width":825,"height":11}},{"id":"d3515dd7-d3fb-47e5-8f7f-dfa0a4a497d0","block_type":"box","text":"status of an unsecured creditor of the counterpar ty (","page_number":105,"box":{"x":69,"y":634,"width":374,"height":11}},{"id":"321724f9-5cc2-4d99-816b-84c1905411e8","block_type":"box","text":"i.e.","page_number":105,"box":{"x":445,"y":634,"width":20,"height":9}},{"id":"bac38510-9e7d-4b72-97e8-4b43b790e2b0","block_type":"box","text":", the position the Fund would normally be in if it were to hold,","page_number":105,"box":{"x":468,"y":634,"width":434,"height":11}},{"id":"5bc0ecc1-73e6-4b5a-8088-968d69eee2c2","block_type":"box","text":"pursuant to its investment policies, other unsecured debt securities of the defaulting counterpar ty) with respect to","page_number":105,"box":{"x":70,"y":649,"width":813,"height":12}},{"id":"3fd8f3be-bfa1-42fc-aa31-7ab86f6cd7de","block_type":"box","text":"the amount of the shor tfall. As an unsecured creditor, a Fund would be at risk of losing some or all of the principal","page_number":105,"box":{"x":68,"y":664,"width":816,"height":12}},{"id":"822772b9-b8c8-4d17-ac60-0b4e198528a4","block_type":"box","text":"and income involved in the transaction.","page_number":105,"box":{"x":69,"y":680,"width":278,"height":9}},{"id":"415da9eb-80cb-469c-b7bc-535bfaf1cac8","block_type":"box","text":"Regulations adopted by global prudential regulators require cer tain bank-regulated counterpar ties and cer tain of","page_number":105,"box":{"x":102,"y":702,"width":800,"height":12}},{"id":"eb6375e8-5381-495e-8919-4d282e5c4bdb","block_type":"box","text":"their affiliates to include in cer tain financial contracts, including many repurchase agreements and purchase and sale","page_number":105,"box":{"x":68,"y":717,"width":840,"height":12}},{"id":"c315358a-ce4b-4048-8045-d4a5118d13bf","block_type":"box","text":"contracts, terms that delay or restrict the rights of counterpar ties, such as a Fund, to terminate such agreements,","page_number":105,"box":{"x":69,"y":732,"width":814,"height":12}},{"id":"60f91a59-1d92-4905-b578-c7b53dc2d860","block_type":"box","text":"take foreclosure action, exercise other default rights or restrict transfers of credit suppor t in the event that the","page_number":105,"box":{"x":68,"y":748,"width":790,"height":11}},{"id":"65df8e5a-c34b-4bf9-a179-c2ad5b3bd15d","block_type":"box","text":"counterpar ty and/or its affiliates are subject to cer tain types of resolution or insolvency proceedings. It is possible","page_number":105,"box":{"x":69,"y":763,"width":818,"height":11}},{"id":"582c4a67-6fbe-40fb-a00f-051bb13a6b9c","block_type":"box","text":"that these requirements, as well as potential additional government regulation and other developments in the","page_number":105,"box":{"x":68,"y":778,"width":783,"height":11}},{"id":"586c94b0-94f0-4895-8c4f-9f1c7cfcaa97","block_type":"box","text":"market, could adversely affect a Fund’s ability to terminate existing repurchase agreements and purchase and sale","page_number":105,"box":{"x":69,"y":793,"width":821,"height":11}},{"id":"dbfe30e6-95d4-4c82-9b52-e80255ebf1b1","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":105,"box":{"x":69,"y":808,"width":800,"height":11}},{"id":"0e7a38c8-bfe3-4c08-9997-83dcdd22e93b","block_type":"box","text":"require cer tain transactions involving U.S. Treasuries, including repurchase agreements, to be centrally cleared.","page_number":105,"box":{"x":69,"y":823,"width":796,"height":12}},{"id":"95308eb2-415b-4b89-9eb0-bb7c456d085a","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":105,"box":{"x":69,"y":838,"width":834,"height":12}},{"id":"af9c1342-421e-4df1-b15e-84d41bcb824a","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":105,"box":{"x":68,"y":853,"width":824,"height":12}},{"id":"b12fba3e-3cf3-40c3-9cb2-664a409a762b","block_type":"box","text":"adversely affect a Fund’s per formance.","page_number":105,"box":{"x":69,"y":869,"width":279,"height":11}},{"id":"df61f79a-d008-4202-b82b-faf95224aac8","block_type":"box","text":"Restricted Securities.","page_number":105,"box":{"x":102,"y":891,"width":157,"height":9}},{"id":"47504a16-252f-437c-8bbe-78a9546637ec","block_type":"box","text":"A Fund may invest in or hold securities that are not registered under the Securities Act","page_number":105,"box":{"x":265,"y":891,"width":617,"height":12}},{"id":"b539145a-3fd9-461c-9995-ec8e1ae61550","block_type":"box","text":"(“restricted securities”), which may include securities in private companies and Rule 144A Securities. Restricted","page_number":105,"box":{"x":69,"y":906,"width":801,"height":12}},{"id":"8c230cc4-783c-4abb-a677-490b3100424c","block_type":"box","text":"II-70","page_number":105,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1ebd74ba-18d0-40d3-aa7f-599e274c2a99","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":105,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9d317efc-3817-45f5-922a-b6521c04cae9","block_type":"box","text":"securities may be sold in private placement transactions between issuers and their purchasers, including through","page_number":106,"box":{"x":69,"y":45,"width":808,"height":11}},{"id":"a38a3c8a-dda5-4715-a107-006bc5a76258","block_type":"box","text":"private negotiated transactions between the issuer and their purchasers, such as the Funds, and may be neither","page_number":106,"box":{"x":70,"y":60,"width":802,"height":11}},{"id":"27e6a300-6014-4e67-85c0-4d3a252f012c","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":106,"box":{"x":70,"y":75,"width":834,"height":11}},{"id":"75d71d09-39d0-49d9-b20c-18a9ff10c360","block_type":"box","text":"freely transferable under the laws of the applicable jurisdiction or due to contractual restrictions on resale. Some of","page_number":106,"box":{"x":68,"y":90,"width":825,"height":11}},{"id":"e163e18a-a9db-45ae-b41f-8af8618f95fd","block_type":"box","text":"these securities are new and complex, and trade only among institutions; the markets for these securities are still","page_number":106,"box":{"x":68,"y":105,"width":815,"height":11}},{"id":"e2ab8454-db3c-45c2-b1d3-7ff4bf88c6dd","block_type":"box","text":"developing, and may not function as efficiently as established markets. Typically, investments in private companies","page_number":106,"box":{"x":69,"y":120,"width":821,"height":12}},{"id":"086bbc71-cac5-4745-949a-c1b6077e4491","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":106,"box":{"x":69,"y":136,"width":831,"height":11}},{"id":"ef5595f3-0f70-464a-8cf8-00590ff209af","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":106,"box":{"x":70,"y":150,"width":824,"height":12}},{"id":"8cde7d82-b6d2-4a72-a0a9-62c27e5950f4","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":106,"box":{"x":69,"y":166,"width":834,"height":11}},{"id":"696f51bb-c047-4010-b206-7a125111094d","block_type":"box","text":"a result of the absence of a public trading market and the potential bespoke nature on cer tain transactions,","page_number":106,"box":{"x":69,"y":181,"width":769,"height":11}},{"id":"19dfd419-ee78-485f-b1c4-a2268973d0d4","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":106,"box":{"x":69,"y":196,"width":838,"height":11}},{"id":"22e757c2-ec0f-40e2-9f6f-7a055d0bcb0e","block_type":"box","text":"value than publicly traded securities. To the extent that restricted securities may be resold in privately negotiated","page_number":106,"box":{"x":68,"y":211,"width":805,"height":11}},{"id":"02ee1154-9f46-455c-a0b9-ab9de637c5cf","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":106,"box":{"x":68,"y":226,"width":840,"height":11}},{"id":"fd60e6cf-f14f-4131-8935-3704d8c16fb3","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":106,"box":{"x":70,"y":241,"width":815,"height":11}},{"id":"44a22e8a-a61c-47e2-bbea-27d8eaa57fbb","block_type":"box","text":"character of the issuer, which par ty (if any) will bear the expenses of registering the restricted security, and prevailing","page_number":106,"box":{"x":69,"y":256,"width":835,"height":12}},{"id":"fbf1b697-d3c1-4956-9a9e-2fd49a725a15","block_type":"box","text":"market conditions. In addition, issuers whose securities are not publicly traded or who are not otherwise publicly","page_number":106,"box":{"x":69,"y":272,"width":803,"height":11}},{"id":"80d1b320-0ba7-492e-8884-5c243d8c8897","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":106,"box":{"x":70,"y":286,"width":830,"height":12}},{"id":"421abd94-a87a-4fe7-84a4-40d280f8854e","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":106,"box":{"x":69,"y":302,"width":817,"height":11}},{"id":"56618f6e-bb54-44d3-875f-d237c2d56f99","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":106,"box":{"x":68,"y":317,"width":825,"height":11}},{"id":"46932e53-7749-44bf-832b-c91fc86d1697","block_type":"box","text":"of registration. Where registration is required for restricted securities, a considerable time period may elapse","page_number":106,"box":{"x":69,"y":332,"width":777,"height":11}},{"id":"53724b4e-45b8-4d91-b16b-29ee0b8a08ea","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":106,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"64405e85-5ac4-4945-b465-047cdd290b1a","block_type":"box","text":"an effective registration statement. If during such period, adverse market conditions were to develop, the Fund might","page_number":106,"box":{"x":69,"y":362,"width":834,"height":11}},{"id":"5d111ec5-1eab-4f2a-97dd-8618249f6172","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":106,"box":{"x":69,"y":377,"width":828,"height":12}},{"id":"e712bd37-d407-4a79-9a6b-cc75d8756d69","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":106,"box":{"x":69,"y":392,"width":836,"height":12}},{"id":"34147fdc-0f7f-4a6c-a467-84fb20db3baf","block_type":"box","text":"to purchasers of the restricted securities if the registration statement prepared by the issuer, or the corresponding","page_number":106,"box":{"x":68,"y":407,"width":819,"height":12}},{"id":"6b9f7f26-b8b7-4f1b-9993-a855710c573a","block_type":"box","text":"prospectus, is materially inaccurate or misleading. Transactions in restricted securities may entail other transaction","page_number":106,"box":{"x":70,"y":423,"width":822,"height":11}},{"id":"bc95d65e-cb25-452d-a5cd-079b4b5774ab","block_type":"box","text":"costs that are higher than those for transactions in unrestricted securities. Cer tain of the Fund’s investments in","page_number":106,"box":{"x":69,"y":438,"width":798,"height":11}},{"id":"e3384aa2-a7aa-4352-8d04-aa385ea92300","block_type":"box","text":"private placements may consist of direct investments and may include investments in smaller, less seasoned","page_number":106,"box":{"x":70,"y":453,"width":780,"height":11}},{"id":"2f68c35a-386c-4c68-9550-7a8566a9fd8e","block_type":"box","text":"issuers, which may involve greater risks. Issuers of restricted securities may not be subject to SEC repor ting","page_number":106,"box":{"x":70,"y":468,"width":773,"height":11}},{"id":"51d16b02-6ab0-48b7-a1fd-67f9dfebc1b7","block_type":"box","text":"requirements, may not be required to maintain their accounting records in accordance with generally accepted","page_number":106,"box":{"x":69,"y":483,"width":784,"height":11}},{"id":"496d6fe7-c176-4061-84bb-ffb65acdd98a","block_type":"box","text":"accounting principles, and may not be required to maintain effective internal controls over financial repor ting. As a","page_number":106,"box":{"x":69,"y":498,"width":816,"height":11}},{"id":"e1e2e4fc-4bf8-4859-9bcf-a95ae0335593","block_type":"box","text":"result, BlackRock may not have timely or accurate information about the business, financial condition and results of","page_number":106,"box":{"x":69,"y":513,"width":828,"height":11}},{"id":"b43e369c-450a-4336-90d5-907c4b17caa4","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":106,"box":{"x":69,"y":528,"width":831,"height":12}},{"id":"c6e73efe-76b6-4f2e-865d-16042b0c9cd7","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":106,"box":{"x":68,"y":543,"width":804,"height":12}},{"id":"aadbab29-e5ac-4c01-a510-b214b15b27c6","block_type":"box","text":"markets or financial resources, or they may be dependent on a limited management group.","page_number":106,"box":{"x":69,"y":559,"width":647,"height":11}},{"id":"e868a9dd-259d-4836-8224-ecc3e077d159","block_type":"box","text":"Cer tain restricted securities may represent limited investment oppor tunities and each shareholder’s","page_number":106,"box":{"x":102,"y":581,"width":714,"height":11}},{"id":"38933e68-9ca7-4758-bebc-01a666def0d9","block_type":"box","text":"propor tionate investment exposure to such limited investment oppor tunities may be reduced propor tionately as the","page_number":106,"box":{"x":70,"y":597,"width":823,"height":11}},{"id":"3e897ccc-b0e1-49c8-ba47-f5bc425db499","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":106,"box":{"x":70,"y":612,"width":826,"height":11}},{"id":"24496984-c482-4043-9c52-fe392bfd1385","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":106,"box":{"x":70,"y":627,"width":830,"height":11}},{"id":"11cafb45-852b-412a-be3d-435a8c781596","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":106,"box":{"x":69,"y":642,"width":812,"height":11}},{"id":"dd68d1e9-2198-446b-946c-bcb897c0b3e5","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":106,"box":{"x":69,"y":657,"width":787,"height":11}},{"id":"c186c999-c3cd-41ef-98fc-3f2f83044c6f","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":106,"box":{"x":69,"y":672,"width":833,"height":11}},{"id":"8958ef74-2fbc-49c5-99bc-81fe40ccd399","block_type":"box","text":"offer other liquidity oppor tunities to the Fund and other investors will extend the holding period of a Fund’s","page_number":106,"box":{"x":69,"y":687,"width":759,"height":11}},{"id":"5ad51b13-ff1d-4759-994f-dd85462acce8","block_type":"box","text":"investments, potentially indefinitely, and may adversely affect the value of the investments. In making investments in","page_number":106,"box":{"x":70,"y":702,"width":833,"height":12}},{"id":"c4fb3317-6fde-4ab8-83d1-99dbe6dd55d9","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":106,"box":{"x":69,"y":717,"width":828,"height":12}},{"id":"ddad21c9-c2c7-4422-9dda-af276959f4b5","block_type":"box","text":"conduct por tfolio transactions in such securities. The activity of identifying, completing, and realizing upon attractive","page_number":106,"box":{"x":69,"y":732,"width":827,"height":12}},{"id":"047fcabc-bd86-40b3-a723-725e010a99bd","block_type":"box","text":"investments in restricted securities is highly competitive and involves a high degree of uncer tainty. A Fund will be","page_number":106,"box":{"x":70,"y":748,"width":804,"height":11}},{"id":"339857de-afcc-43c0-8fb9-d7b8478a902d","block_type":"box","text":"competing for investments against other similarly situated investors. It is possible that competition for appropriate","page_number":106,"box":{"x":69,"y":763,"width":816,"height":11}},{"id":"a5ec52d3-b031-4359-8b5c-cb23367cd795","block_type":"box","text":"investment oppor tunities may increase, thus potentially reducing the number of investment oppor tunities available to","page_number":106,"box":{"x":70,"y":778,"width":835,"height":11}},{"id":"2443fd6f-d017-4f95-8ff6-a7992a7e14ba","block_type":"box","text":"a Fund and adversely affecting the terms upon which investments can be made. There is no assurance that","page_number":106,"box":{"x":69,"y":793,"width":768,"height":11}},{"id":"695bcf1e-1065-49c4-b723-4a1cdaa107da","block_type":"box","text":"investment oppor tunities for restricted securities will be available at any given time or at a level desired by a Fund,","page_number":106,"box":{"x":70,"y":808,"width":815,"height":11}},{"id":"bbdad6db-8930-4b14-859e-22ebdc862de9","block_type":"box","text":"especially as that Fund grows in size.","page_number":106,"box":{"x":69,"y":823,"width":264,"height":12}},{"id":"0f3f23b0-3f01-416a-9a18-cca3e201aaca","block_type":"box","text":"There may not be a readily available market value for a Fund’s restricted securities (in par ticular, restricted","page_number":106,"box":{"x":101,"y":846,"width":762,"height":11}},{"id":"fd03da29-5975-4608-a83b-9bdcb7443b96","block_type":"box","text":"securities issued by private companies) and thus they may be considered “illiquid”. Each Fund values restricted","page_number":106,"box":{"x":69,"y":861,"width":795,"height":11}},{"id":"82899ddb-e6d4-48ac-863f-017939a5d2eb","block_type":"box","text":"securities in accordance with BlackRock’s valuation policies and procedures, which are designed to value","page_number":106,"box":{"x":69,"y":876,"width":751,"height":11}},{"id":"48272dbe-af8e-4ebe-bdee-abacf6db81d9","block_type":"box","text":"investments such that they accurately reflect fair value. Due to the inherent uncer tainty and subjectivity of","page_number":106,"box":{"x":70,"y":891,"width":755,"height":11}},{"id":"f87e2b67-4dd1-4e1c-a82f-cbdf367dcbaa","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":106,"box":{"x":69,"y":906,"width":830,"height":12}},{"id":"9c178db7-eb8c-45f9-9c13-b9717ff0e8ac","block_type":"box","text":"II-71","page_number":106,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"01d79c23-5d52-4274-aad5-9a371cfb01f2","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":106,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"690a8cda-63ed-4cae-ab5d-4f339828b9ec","block_type":"box","text":"private investments may differ significantly from the values that would have been used had a readily available market","page_number":107,"box":{"x":70,"y":45,"width":835,"height":11}},{"id":"93b95adc-b388-4664-8692-e5011ecb7d9e","block_type":"box","text":"value existed for such investments and may differ materially from the amounts the Fund may realize on any","page_number":107,"box":{"x":68,"y":60,"width":766,"height":11}},{"id":"3e39e97b-6a8a-41e2-b6da-9651b675dd59","block_type":"box","text":"dispositions of such investments. Differences in the value of the Fund’s private investments could result in the","page_number":107,"box":{"x":69,"y":75,"width":792,"height":11}},{"id":"bf9d5126-b095-454f-bfc6-20b6494c6f7e","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":107,"box":{"x":70,"y":90,"width":821,"height":11}},{"id":"f8cd7836-6b6f-49ec-b2a9-2d39aef5ba4f","block_type":"box","text":"Fund’s por tfolio, potentially resulting in the dilution of shareholder interests and increasing oppor tunities for","page_number":107,"box":{"x":70,"y":105,"width":771,"height":11}},{"id":"3cc6b7fd-aac9-4d90-896c-77ce4609c2d0","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":107,"box":{"x":69,"y":120,"width":826,"height":12}},{"id":"d68c8b30-71c9-468c-888d-39a6c552c2d0","block_type":"box","text":"by other investment companies and investors to price the same restricted securities. In addition, the impact of","page_number":107,"box":{"x":69,"y":135,"width":790,"height":11}},{"id":"38066407-708f-403c-a10f-c1e9cda68103","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":107,"box":{"x":69,"y":150,"width":828,"height":12}},{"id":"40bbeb6e-20d4-45a3-904d-6287fda0e337","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":107,"box":{"x":69,"y":166,"width":810,"height":11}},{"id":"15b31d21-d1e8-429a-86d5-950dec1e3ca0","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":107,"box":{"x":70,"y":181,"width":818,"height":11}},{"id":"c98541dc-4505-4310-adcf-7664bc1b5b98","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":107,"box":{"x":68,"y":196,"width":839,"height":11}},{"id":"6da8a838-ceb6-450c-b3a3-ba0d98afb3b4","block_type":"box","text":"that the Fund ultimately realizes upon the disposal of such investments.","page_number":107,"box":{"x":68,"y":211,"width":514,"height":11}},{"id":"e576a2cb-3d6c-4233-9062-c20761e2a1a4","block_type":"box","text":"See also risks discussed under “Illiquid Investments.”","page_number":107,"box":{"x":102,"y":234,"width":385,"height":11}},{"id":"3379a31a-cf36-40b8-9ffe-85b5d1a2ede1","block_type":"box","text":"Reverse Repurchase Agreements.","page_number":107,"box":{"x":102,"y":257,"width":246,"height":10}},{"id":"2d948429-7cec-4bb7-99e8-9246e7096192","block_type":"box","text":"A Fund may enter into reverse repurchase agreements with the same par ties","page_number":107,"box":{"x":354,"y":257,"width":548,"height":11}},{"id":"e1d45308-5a35-4c82-9a11-0b99d54530a5","block_type":"box","text":"with whom it may enter into repurchase agreements. Under a reverse repurchase agreement, a Fund sells securities","page_number":107,"box":{"x":68,"y":272,"width":830,"height":11}},{"id":"f350a734-4816-4091-841c-e3c70e2453ba","block_type":"box","text":"to another par ty and agrees to repurchase them at a par ticular date and price. A Fund may enter into a reverse","page_number":107,"box":{"x":68,"y":287,"width":793,"height":11}},{"id":"61561c24-8ebb-4ba4-ad52-607f243c884c","block_type":"box","text":"repurchase agreement when it is anticipated that the interest income to be earned from the investment of the","page_number":107,"box":{"x":69,"y":302,"width":784,"height":11}},{"id":"6ced7f0f-750e-411e-b499-63e6d3e3d842","block_type":"box","text":"proceeds of the transaction is greater than the interest expense of the transaction.","page_number":107,"box":{"x":70,"y":317,"width":591,"height":11}},{"id":"2c4bca08-ba3a-4bd3-97e9-2698eb852b20","block_type":"box","text":"The use of reverse repurchase agreements may be regarded as leveraging and, therefore, speculative.","page_number":107,"box":{"x":101,"y":339,"width":730,"height":12}},{"id":"31c4ed2c-f0e4-4d4b-aa54-32a36f482844","block_type":"box","text":"Fur thermore, reverse repurchase agreements involve the risks that (i) the interest income earned in the investment","page_number":107,"box":{"x":70,"y":355,"width":822,"height":11}},{"id":"df011e8f-09d1-408a-918e-315954304e4b","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":107,"box":{"x":69,"y":370,"width":821,"height":11}},{"id":"0d839d7d-6c53-4bf2-9771-382f026997ab","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":107,"box":{"x":69,"y":385,"width":801,"height":11}},{"id":"a997cca9-35ec-4212-b771-3bc990f92afb","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":107,"box":{"x":69,"y":400,"width":830,"height":11}},{"id":"17222d28-291e-4621-995e-f1078087d4a8","block_type":"box","text":"(iv) the securities will not be returned to the Fund.","page_number":107,"box":{"x":69,"y":415,"width":354,"height":11}},{"id":"bd9080ea-0fdb-43bd-83cb-ccdec3bae934","block_type":"box","text":"In addition, if the buyer of securities under a reverse repurchase agreement files for bankruptcy or becomes","page_number":107,"box":{"x":102,"y":438,"width":769,"height":11}},{"id":"9db72422-f410-4974-a10f-43963aa6e594","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":107,"box":{"x":70,"y":453,"width":815,"height":11}},{"id":"33da2ed7-75fb-45ed-bb88-75ccf6044569","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":107,"box":{"x":70,"y":468,"width":782,"height":11}},{"id":"4cacbb1c-dc95-4c92-b7d8-2ec88955f445","block_type":"box","text":"agreement may effectively be restricted pending such decision.","page_number":107,"box":{"x":69,"y":483,"width":449,"height":11}},{"id":"0709c67f-2aa7-45fd-93cc-c4a4a39df5f1","block_type":"box","text":"Rule 18f-4 under the Investment Company Act permits a Fund to enter into reverse repurchase agreements and","page_number":107,"box":{"x":102,"y":506,"width":794,"height":11}},{"id":"9e141a27-39dd-4588-9e20-7a7e4ac6a780","block_type":"box","text":"similar financing transactions (","page_number":107,"box":{"x":69,"y":521,"width":218,"height":11}},{"id":"54fd94a0-ecbe-472c-bf99-3a5ec6f26c58","block_type":"box","text":"e.g.","page_number":107,"box":{"x":289,"y":522,"width":24,"height":10}},{"id":"f82ffde1-96f5-473f-9dd2-341959c7c4f7","block_type":"box","text":", recourse and non-recourse tender option bonds, borrowed bonds) notwithstanding","page_number":107,"box":{"x":316,"y":521,"width":594,"height":11}},{"id":"1cb0d595-a4d2-4d09-bb1b-a1850fdaebca","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":107,"box":{"x":68,"y":536,"width":813,"height":11}},{"id":"ffbd57a4-7301-4b28-b4ee-144eeff1d832","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":107,"box":{"x":70,"y":551,"width":789,"height":11}},{"id":"283ccd29-97cc-453f-8c4b-5eca7cbc165c","block_type":"box","text":"borrowings in the aggregate, or (ii) treats all such transactions as Derivatives Transactions under Rule 18f-4. See “—","page_number":107,"box":{"x":69,"y":566,"width":836,"height":11}},{"id":"6dac698e-fdb1-4c4e-b341-8ab39a833125","block_type":"box","text":"Derivatives — Regulation of Derivatives — Rule 18f-4 under the Investment Company Act” above. The SEC has also","page_number":107,"box":{"x":70,"y":581,"width":824,"height":12}},{"id":"7a76d708-394a-456b-890f-5d90dcbc57f2","block_type":"box","text":"finalized rules that will require cer tain transactions involving U.S. Treasuries, including reverse repurchase","page_number":107,"box":{"x":68,"y":596,"width":758,"height":12}},{"id":"86b9ac48-02a3-4792-80d2-854d049678b8","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":107,"box":{"x":69,"y":612,"width":822,"height":11}},{"id":"c6749837-11b4-4919-a261-e7b3ccf99717","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":107,"box":{"x":68,"y":627,"width":838,"height":11}},{"id":"e7af2b79-b605-47e9-92bc-591e7931e477","block_type":"box","text":"costs of such transactions and may adversely affect a Fund’s per formance.","page_number":107,"box":{"x":69,"y":642,"width":538,"height":11}},{"id":"010aa9b4-e180-4462-a382-2e9b418dc79f","block_type":"box","text":"Additionally, regulations adopted by global prudential regulators require cer tain bank-regulated counterpar ties","page_number":107,"box":{"x":101,"y":665,"width":780,"height":11}},{"id":"b08303d1-30d7-4220-b0bb-87bf4a9458c0","block_type":"box","text":"and cer tain of their affiliates to include in cer tain financial contracts, including many reverse repurchase agreements,","page_number":107,"box":{"x":69,"y":680,"width":838,"height":11}},{"id":"c55e803c-6da7-4389-9daf-e358facd76b0","block_type":"box","text":"terms that delay or restrict the rights of counterpar ties, such as a Fund, to terminate such agreements, take","page_number":107,"box":{"x":68,"y":695,"width":775,"height":11}},{"id":"7edcb6e9-387c-4b7f-ad69-e3cdae976b14","block_type":"box","text":"foreclosure action, exercise other default rights or restrict transfers of credit suppor t in the event that the","page_number":107,"box":{"x":68,"y":710,"width":754,"height":11}},{"id":"b7404dd0-08d8-4231-8188-b8f6f6f4c77a","block_type":"box","text":"counterpar ty and/or its affiliates are subject to cer tain types of resolution or insolvency proceedings. It is possible","page_number":107,"box":{"x":69,"y":725,"width":818,"height":11}},{"id":"712b9a96-b7db-44de-a890-f46fa244376d","block_type":"box","text":"that these requirements, as well as potential additional government regulation and other developments in the","page_number":107,"box":{"x":68,"y":740,"width":783,"height":11}},{"id":"e823b4c0-0a64-41db-bbf6-da866b5731c1","block_type":"box","text":"market, could adversely affect a Fund’s ability to terminate existing reverse repurchase agreements or to realize","page_number":107,"box":{"x":69,"y":755,"width":800,"height":11}},{"id":"6ede21ad-3151-4589-bbdd-bfdeca2a0b40","block_type":"box","text":"amounts to be received under such agreements.","page_number":107,"box":{"x":69,"y":771,"width":345,"height":11}},{"id":"f433e610-e7bf-4fb8-803d-abc98f766c46","block_type":"box","text":"Rights Offerings and Warrants to Purchase.","page_number":107,"box":{"x":102,"y":793,"width":316,"height":11}},{"id":"306c56ee-ece8-45da-8e54-66a220f5a8e0","block_type":"box","text":"Cer tain Funds may par ticipate in rights offerings and may purchase","page_number":107,"box":{"x":424,"y":793,"width":481,"height":11}},{"id":"8f3397c9-aa38-4a1e-a96e-f250d4bbe28a","block_type":"box","text":"warrants, which are privileges issued by corporations enabling the owners to subscribe to and purchase a specified","page_number":107,"box":{"x":68,"y":808,"width":822,"height":11}},{"id":"9db13950-f816-482e-863b-1ffdbd342eb7","block_type":"box","text":"number of shares of the corporation at a specified price during a specified period of time. Subscription rights","page_number":107,"box":{"x":69,"y":823,"width":776,"height":12}},{"id":"9736641c-589b-45a6-b46e-a23e5b857c7d","block_type":"box","text":"normally have a shor t life span to expiration. The purchase of rights or warrants involves the risk that a Fund could","page_number":107,"box":{"x":69,"y":838,"width":817,"height":12}},{"id":"fe181540-7d25-4349-a0ab-38e784a0d386","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":107,"box":{"x":70,"y":853,"width":833,"height":12}},{"id":"98119f14-3684-4d90-b498-1d91649484c5","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":107,"box":{"x":69,"y":869,"width":835,"height":11}},{"id":"21d63c89-90cf-4209-838b-de036f6e7eae","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":107,"box":{"x":70,"y":884,"width":821,"height":11}},{"id":"cf48bba4-ac30-4a5f-a439-2dc71c0075aa","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":107,"box":{"x":69,"y":899,"width":830,"height":11}},{"id":"7dc58443-30e2-43a5-989e-a016dabebca6","block_type":"box","text":"II-72","page_number":107,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"a27ac56a-6227-4812-831a-99185c8234de","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":107,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"40e5117d-4f77-4629-804b-c33eac0b491d","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":108,"box":{"x":69,"y":45,"width":777,"height":11}},{"id":"c4070345-9a93-4f04-9a9a-3756aec86d85","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":108,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"66db843f-1fc0-469b-8ea1-24a5e53bdda4","block_type":"box","text":"this reason investments in warrants may be more speculative than other equity-based investments.","page_number":108,"box":{"x":68,"y":75,"width":708,"height":11}},{"id":"c89efdf7-6dd8-4fad-a670-656c9ec1708b","block_type":"box","text":"Rule 144A Securities.","page_number":108,"box":{"x":102,"y":98,"width":159,"height":9}},{"id":"aa136fa0-8a00-4631-abc4-360eab9a57b1","block_type":"box","text":"A Fund may purchase securities that can be offered and sold only to “qualified","page_number":108,"box":{"x":266,"y":98,"width":560,"height":11}},{"id":"2d06afc4-2c67-43ff-8cd4-e4f71eee92ca","block_type":"box","text":"institutional buyers” pursuant to Rule 144A under the Securities Act. See “Restricted Securities” above.","page_number":108,"box":{"x":70,"y":113,"width":741,"height":11}},{"id":"6d3543c7-0e2d-4e77-a77e-eb69e2091394","block_type":"box","text":"Securities Lending.","page_number":108,"box":{"x":101,"y":135,"width":139,"height":11}},{"id":"f9339ad1-c7b4-4cf0-8c59-add2978a168d","block_type":"box","text":"Each Fund may lend por tfolio securities to cer tain borrowers that BlackRock determines to","page_number":108,"box":{"x":247,"y":135,"width":645,"height":11}},{"id":"8f77c646-cf19-4468-b05f-0baa0bb4d96e","block_type":"box","text":"be creditwor thy, including borrowers affiliated with BlackRock. The borrowers provide collateral that is maintained in","page_number":108,"box":{"x":69,"y":150,"width":825,"height":12}},{"id":"c8dbd020-0401-4ead-95c7-453b27e768f9","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":108,"box":{"x":69,"y":166,"width":817,"height":11}},{"id":"519f7fd3-13ac-4300-aaaf-161928d96fa0","block_type":"box","text":"behalf of a Fund if, as a result, the aggregate value of all securities loans of the par ticular Fund exceeds one-third of","page_number":108,"box":{"x":69,"y":181,"width":831,"height":11}},{"id":"cd349fe8-25be-497f-8d7e-5a0d4513b9e1","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":108,"box":{"x":68,"y":196,"width":827,"height":11}},{"id":"7ec07971-b881-4ac9-8502-51c807d3b66e","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":108,"box":{"x":69,"y":211,"width":829,"height":11}},{"id":"b98cfb4f-f4c6-4668-96ba-6ddfc3b6200a","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":108,"box":{"x":69,"y":226,"width":838,"height":11}},{"id":"cea5de4c-4172-4a49-8d80-eee8788bbf29","block_type":"box","text":"the securities were not on loan.","page_number":108,"box":{"x":68,"y":241,"width":225,"height":9}},{"id":"1101c39c-a84d-40f0-9387-8afe9369af43","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":108,"box":{"x":101,"y":264,"width":799,"height":11}},{"id":"caccc1dd-35af-4a7e-b2b8-006d54c02560","block_type":"box","text":"amount of cash collateral. The Funds are compensated by any positive difference between the amount earned on the","page_number":108,"box":{"x":69,"y":279,"width":835,"height":11}},{"id":"6c3384bf-3f06-45ee-be03-8affe01b5243","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":108,"box":{"x":69,"y":294,"width":824,"height":11}},{"id":"897eec25-4b82-4a96-9354-a8e73e2d1033","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":108,"box":{"x":69,"y":309,"width":821,"height":11}},{"id":"af4626aa-f6ca-41f5-a904-fec5b67a8304","block_type":"box","text":"cash collateral received by the Fund for such loans, and uninvested cash, may be reinvested in cer tain shor t-term","page_number":108,"box":{"x":69,"y":324,"width":810,"height":11}},{"id":"bd48bbe8-aa34-48d8-811c-037bf9814d87","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":108,"box":{"x":70,"y":339,"width":789,"height":12}},{"id":"169a4140-eb70-466b-b245-92421468112a","block_type":"box","text":"including those affiliated with BlackRock; such investments are subject to investment risk.","page_number":108,"box":{"x":70,"y":355,"width":643,"height":11}},{"id":"6c07d7fc-a719-476a-a638-5b6b6d1e0d82","block_type":"box","text":"Securities lending involves exposure to cer tain risks, including operational risk (","page_number":108,"box":{"x":102,"y":377,"width":568,"height":12}},{"id":"28b2f89c-56c3-4c0f-9e22-9f45d4038b66","block_type":"box","text":"i.e.","page_number":108,"box":{"x":672,"y":377,"width":20,"height":9}},{"id":"90d214f0-4f67-4c69-9f27-f4649758e5e1","block_type":"box","text":", the risk of losses resulting","page_number":108,"box":{"x":695,"y":377,"width":198,"height":12}},{"id":"9a34ec1e-3980-4504-833e-f93d8bcd5090","block_type":"box","text":"from problems in the settlement and accounting process), “gap” risk (","page_number":108,"box":{"x":68,"y":392,"width":501,"height":12}},{"id":"a1c2f7e8-fc01-437c-9581-aa507bdd703f","block_type":"box","text":"i.e.","page_number":108,"box":{"x":571,"y":393,"width":20,"height":8}},{"id":"cf4dbc8c-10ed-4a70-8096-2df05ce8fc6c","block_type":"box","text":", the risk of a mismatch between the return","page_number":108,"box":{"x":594,"y":392,"width":307,"height":11}},{"id":"59b54d45-621e-4cad-8790-04e235c1093a","block_type":"box","text":"on cash collateral reinvestments and the fees each Fund has agreed to pay a borrower), foreign exchange risk (","page_number":108,"box":{"x":69,"y":407,"width":794,"height":12}},{"id":"e9fd21b6-c000-4159-a1d2-c712ae69414b","block_type":"box","text":"i.e.","page_number":108,"box":{"x":865,"y":408,"width":20,"height":8}},{"id":"d8426cf5-2ac0-4182-a4f0-9822775fa8cb","block_type":"box","text":",","page_number":108,"box":{"x":888,"y":415,"width":2,"height":3}},{"id":"14bfcc64-e406-4519-a12e-8d5b5cf2f8e3","block_type":"box","text":"the risk of a shor tfall at default when a cash collateral investment is denominated in a currency other than the","page_number":108,"box":{"x":68,"y":423,"width":788,"height":11}},{"id":"be1a9362-f516-4e50-b253-e755559a5a10","block_type":"box","text":"currency of the assets being loaned due to movements in foreign exchange rates), and credit, legal, counterpar ty and","page_number":108,"box":{"x":69,"y":438,"width":837,"height":11}},{"id":"c4dc019b-6964-4617-954b-b0334c3d9518","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":108,"box":{"x":69,"y":453,"width":822,"height":11}},{"id":"9d0310d0-3dde-40c6-84c2-376928106574","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":108,"box":{"x":68,"y":468,"width":811,"height":11}},{"id":"5e591bc5-7185-4f44-ba08-34c019712879","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":108,"box":{"x":70,"y":483,"width":820,"height":11}},{"id":"04e62412-c867-4fb0-8deb-c34676939258","block_type":"box","text":"are subject to a corporate action and commit to the borrower a par ticular election as determined by the Fund’s","page_number":108,"box":{"x":69,"y":498,"width":790,"height":11}},{"id":"9a0282a7-3a11-4538-990d-20df1ae3fa19","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":108,"box":{"x":70,"y":513,"width":820,"height":12}},{"id":"556e131c-58e3-45b7-beb3-3e0eac2fdb77","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":108,"box":{"x":70,"y":528,"width":805,"height":12}},{"id":"1fbde46c-af68-42b1-8e61-49f554d78975","block_type":"box","text":"securities lending counterpar ty were to default, a Fund would be subject to the risk of a possible delay in receiving","page_number":108,"box":{"x":69,"y":543,"width":816,"height":12}},{"id":"906c079a-5e3d-4a6b-86a3-40afaefe1811","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":108,"box":{"x":69,"y":559,"width":775,"height":11}},{"id":"d9d8f8bc-274c-4ccc-9dd3-ea3f3d950455","block_type":"box","text":"borrower does not return a Fund’s securities as agreed, the Fund’s ability to par ticipate in a corporate action event","page_number":108,"box":{"x":69,"y":574,"width":821,"height":11}},{"id":"aad7a46c-e969-4810-8fe9-5744e1a056e8","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":108,"box":{"x":69,"y":589,"width":838,"height":11}},{"id":"a9bbb974-b2cb-42bf-8839-8bbe4a09f8a8","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":108,"box":{"x":70,"y":604,"width":837,"height":11}},{"id":"f0cf5818-56f9-43dc-8108-9e1172d8053e","block_type":"box","text":"in purchasing replacement securities. This latter event could trigger adverse tax consequences for a Fund. A Fund","page_number":108,"box":{"x":70,"y":619,"width":808,"height":11}},{"id":"f2ea6b42-965b-4d2c-800c-11524f6bfb67","block_type":"box","text":"could lose money if its shor t-term investment of the collateral declines in value over the period of the loan. Substitute","page_number":108,"box":{"x":69,"y":634,"width":839,"height":11}},{"id":"1a8fa04d-8054-4f8d-a8c3-d3ab5bf3fc91","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":108,"box":{"x":70,"y":650,"width":832,"height":11}},{"id":"da775648-e1c0-4918-aebb-5b2fa41deb12","block_type":"box","text":"qualified dividend income, and distributions by the Fund of such substitute payments will not constitute qualified","page_number":108,"box":{"x":69,"y":664,"width":801,"height":12}},{"id":"aa10fe15-51ea-4aa4-877b-13868d2286d5","block_type":"box","text":"dividend income. Additionally, substitute payments received by a Fund representing qualified REIT dividends paid on","page_number":108,"box":{"x":69,"y":680,"width":823,"height":11}},{"id":"7faf1306-7283-40ff-b7d1-be596d42edfa","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":108,"box":{"x":70,"y":695,"width":823,"height":11}},{"id":"d75d183c-2c4c-4254-840d-6881f4bbe1f0","block_type":"box","text":"of such substitute payments will not be eligible for a 20% deduction currently available for ordinary REIT dividends","page_number":108,"box":{"x":69,"y":710,"width":812,"height":11}},{"id":"827d1f2a-90c2-4cdd-9a39-4e2ee93d03d9","block_type":"box","text":"paid to non-corporate shareholders provided cer tain other requirements are satisfied. The securities lending agent","page_number":108,"box":{"x":70,"y":725,"width":814,"height":11}},{"id":"b0bee825-2124-444a-8053-6d5db0edda0a","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":108,"box":{"x":68,"y":740,"width":787,"height":11}},{"id":"d362e98a-2420-49ed-907f-4de50295d667","block_type":"box","text":"securities lending program. Substitute payments received on tax-exempt securities loaned out will not be tax-exempt","page_number":108,"box":{"x":69,"y":755,"width":828,"height":11}},{"id":"df9dc50e-1e7d-434e-b9e5-d94760fcb2db","block_type":"box","text":"income. There could also be changes in the status of issuers under applicable laws and regulations, including tax","page_number":108,"box":{"x":70,"y":770,"width":809,"height":12}},{"id":"4c87e573-502e-4a1d-93c6-8f2ef6326788","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":108,"box":{"x":69,"y":785,"width":821,"height":12}},{"id":"e275dee1-d4f4-44f9-b178-497538bd4669","block_type":"box","text":"delay in the payment of dividend equivalent payments owed to a Fund (as permitted by applicable law).","page_number":108,"box":{"x":69,"y":801,"width":731,"height":11}},{"id":"3b007c10-5885-4774-8e7c-38c0b8e91efc","block_type":"box","text":"Regulations adopted by global prudential regulators require cer tain bank-regulated counterpar ties and cer tain of","page_number":108,"box":{"x":102,"y":823,"width":800,"height":12}},{"id":"ffe31192-3f99-436c-88d1-2191c352ad2b","block_type":"box","text":"their affiliates to include in cer tain financial contracts, including many securities lending agreements, terms that","page_number":108,"box":{"x":68,"y":838,"width":802,"height":12}},{"id":"c6115faa-0e27-435a-a0f5-7a30206951e0","block_type":"box","text":"delay or restrict the rights of counterpar ties, such as the Fund, to terminate such agreements, foreclose upon","page_number":108,"box":{"x":69,"y":853,"width":783,"height":12}},{"id":"b56fde0e-2015-4f4b-850d-8b2071075179","block_type":"box","text":"collateral, exercise other default rights or restrict transfers of credit suppor t in the event that the counterpar ty and/or","page_number":108,"box":{"x":69,"y":869,"width":839,"height":11}},{"id":"771cb532-4239-4df9-ab4a-9daff68499f0","block_type":"box","text":"its affiliates are subject to cer tain types of resolution or insolvency proceedings. It is possible that these","page_number":108,"box":{"x":70,"y":884,"width":747,"height":11}},{"id":"bb05b792-1f14-4312-bce3-f3ca7eae3038","block_type":"box","text":"requirements, as well as potential additional government regulation and other developments in the market, could","page_number":108,"box":{"x":69,"y":899,"width":806,"height":11}},{"id":"0b42ed1f-2013-4aef-8e7d-c7a1a6bb593b","block_type":"box","text":"II-73","page_number":108,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"f50615f5-0b2e-427a-a6a4-cfd8f3442ca0","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":108,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"03fdab38-9cf5-4fd8-b0ed-bb2dbcd43b35","block_type":"box","text":"adversely affect the Fund’s ability to terminate existing securities lending agreements or to realize amounts to be","page_number":109,"box":{"x":69,"y":45,"width":808,"height":11}},{"id":"5f24771d-2c97-4444-b5f2-1f4b0f5a551a","block_type":"box","text":"received under such agreements. Prudential regulation may also favor lenders that can provide additional protections,","page_number":109,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"9edceefd-889f-4ad6-9533-326556b82c8f","block_type":"box","text":"such as liens that are exercisable in connection with a lender default, to borrowers. Cer tain Funds expect to provide","page_number":109,"box":{"x":69,"y":75,"width":827,"height":11}},{"id":"d4b65ae5-0254-49df-b3b1-b3e76c7b68cd","block_type":"box","text":"additional protections to borrowers, where permitted pursuant to a Fund’s investment policies and if BlackRock","page_number":109,"box":{"x":69,"y":90,"width":794,"height":11}},{"id":"6837b041-10a9-4568-830e-a87d27a4976a","block_type":"box","text":"believes doing so is in the best interest of the Fund.","page_number":109,"box":{"x":69,"y":105,"width":371,"height":11}},{"id":"736cc342-1537-46d7-a932-be07dc62e39d","block_type":"box","text":"The SEC has adopted a rule that will require repor ting and public disclosure of securities loan transaction","page_number":109,"box":{"x":101,"y":128,"width":753,"height":11}},{"id":"398b356d-e70a-4eae-b4e1-efea57a173f0","block_type":"box","text":"information (not including par ty names); this may include, but is not limited to, information about securities loans","page_number":109,"box":{"x":70,"y":143,"width":808,"height":11}},{"id":"732e62e2-9d7f-4537-81b4-60511ba9e9fb","block_type":"box","text":"entered into in connection with shor t sales. Compliance with this rule is expected to be required in late 2028,","page_number":109,"box":{"x":69,"y":158,"width":784,"height":11}},{"id":"2fc327ce-6491-470c-a6d7-a8a3e5d3ff01","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":109,"box":{"x":69,"y":173,"width":833,"height":11}},{"id":"a0798b77-df0e-4180-ab1c-b3462d32555f","block_type":"box","text":"the current expected compliance date.","page_number":109,"box":{"x":68,"y":188,"width":273,"height":11}},{"id":"fe52a5aa-27a2-44a2-86e9-dddebac53c26","block_type":"box","text":"Short Sales.","page_number":109,"box":{"x":101,"y":211,"width":89,"height":9}},{"id":"e51eb7a0-6339-4ad7-abcb-d74acc89d68c","block_type":"box","text":"Cer tain Funds may make shor t sales of securities, either as a hedge against potential declines in","page_number":109,"box":{"x":196,"y":211,"width":696,"height":11}},{"id":"a741b8e0-5e12-4953-93ac-4c54ee76ce84","block_type":"box","text":"value of a por tfolio security or to realize appreciation when a security that the Fund does not own declines in value.","page_number":109,"box":{"x":68,"y":226,"width":821,"height":11}},{"id":"2acc6bd8-b2ca-45d5-83b9-4c4bdbc38aaf","block_type":"box","text":"Cer tain Funds have a fundamental investment restriction prohibiting shor t sales of securities unless they are","page_number":109,"box":{"x":69,"y":241,"width":778,"height":11}},{"id":"4804bb49-e4f3-4b46-91dc-8b57ccd99d80","block_type":"box","text":"“against-the-box.” In a shor t sale “against-the-box,” at the time of the sale, the Fund owns or has the immediate and","page_number":109,"box":{"x":70,"y":256,"width":831,"height":12}},{"id":"d793a69e-20cc-4d7d-8d24-965a6aa3233e","block_type":"box","text":"unconditional right to acquire the identical security at no additional cost. When a Fund makes a shor t sale, it borrows","page_number":109,"box":{"x":69,"y":272,"width":837,"height":11}},{"id":"7cf55f83-6573-4557-918e-d2794b92bcca","block_type":"box","text":"the security sold shor t and delivers it to the broker-dealer through which it made the shor t sale. A Fund may have to","page_number":109,"box":{"x":68,"y":287,"width":828,"height":11}},{"id":"890c1b3b-cd84-4a6d-abcb-7d83f44f1b29","block_type":"box","text":"pay a fee to borrow par ticular securities and is often obligated to turn over any payments received on such borrowed","page_number":109,"box":{"x":70,"y":302,"width":829,"height":11}},{"id":"0c122078-59be-40bf-bc03-a17bcf5b74c7","block_type":"box","text":"securities to the lender of the securities.","page_number":109,"box":{"x":69,"y":317,"width":289,"height":9}},{"id":"97541652-1a8d-4471-9369-81e9171b1510","block_type":"box","text":"A Fund secures its obligation to replace the borrowed security by depositing collateral with the broker-dealer,","page_number":109,"box":{"x":101,"y":340,"width":772,"height":11}},{"id":"08d4f7cb-9a2d-46a3-9bf1-034f1e69434b","block_type":"box","text":"usually in cash, U.S. Government Securities or other liquid securities similar to those borrowed. With respect to","page_number":109,"box":{"x":69,"y":355,"width":795,"height":11}},{"id":"bc644976-172a-4202-829f-0dc264d957fd","block_type":"box","text":"uncovered shor t positions, a Fund is required to deposit similar collateral with its custodian, if necessary, to the","page_number":109,"box":{"x":69,"y":370,"width":801,"height":11}},{"id":"ca95f68d-a0a0-4995-a71d-665b47b22466","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":109,"box":{"x":69,"y":385,"width":830,"height":11}},{"id":"3fec306f-a45c-4996-89e2-299501026b59","block_type":"box","text":"market value of the security sold shor t. Depending on arrangements made with the broker-dealer from which the Fund","page_number":109,"box":{"x":69,"y":400,"width":839,"height":11}},{"id":"2b2be39a-666e-46b6-8afe-b939375a9187","block_type":"box","text":"borrowed the security, regarding payment received by the Fund on such security, a Fund may not receive any","page_number":109,"box":{"x":69,"y":415,"width":770,"height":11}},{"id":"ba2b303c-aaf5-4f62-aa83-c2f9fe0ecda1","block_type":"box","text":"payments (including interest) on its collateral deposited with such broker-dealer.","page_number":109,"box":{"x":70,"y":430,"width":568,"height":11}},{"id":"4272fc4b-7bd4-414c-bd19-95edd51cfb08","block_type":"box","text":"Because making shor t sales in securities that it does not own exposes a Fund to the risks associated with those","page_number":109,"box":{"x":102,"y":453,"width":806,"height":11}},{"id":"56ff93e0-3063-4ad7-a1f4-e0e119afa365","block_type":"box","text":"securities, such shor t sales involve speculative exposure risk. A Fund will incur a loss as a result of a shor t sale if","page_number":109,"box":{"x":69,"y":468,"width":817,"height":11}},{"id":"f2fccaef-cc26-48a2-933d-a312da2ff82f","block_type":"box","text":"the price of the security increases between the date of the shor t sale and the date on which the Fund replaces the","page_number":109,"box":{"x":68,"y":483,"width":819,"height":11}},{"id":"9e6546d8-5276-4866-b9a5-38d9db209563","block_type":"box","text":"borrowed security. As a result, if a Fund makes shor t sales in securities that increase in value, it will likely","page_number":109,"box":{"x":69,"y":498,"width":758,"height":11}},{"id":"8bb0ffdb-6241-4b7a-92f1-e1b4ef6458f9","block_type":"box","text":"underper form similar mutual funds that do not make shor t sales in securities. A Fund will realize a gain on a shor t","page_number":109,"box":{"x":69,"y":513,"width":817,"height":12}},{"id":"09a8c2d8-6400-43d5-a729-70eb0a1fa3bb","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":109,"box":{"x":69,"y":528,"width":800,"height":12}},{"id":"75a2cc14-0bbc-4ce8-bad7-c35266d6cb62","block_type":"box","text":"close out a shor t sale position at any par ticular time or at an acceptable price. Although a Fund’s gain is limited to","page_number":109,"box":{"x":69,"y":544,"width":818,"height":11}},{"id":"6ef804af-8df5-4054-ae3c-e0b51047f653","block_type":"box","text":"the price at which it sold the security shor t, its potential loss is limited only by the maximum attainable price of the","page_number":109,"box":{"x":68,"y":559,"width":821,"height":11}},{"id":"a5d756c0-182b-4cf4-a3e2-8934ec2cdb85","block_type":"box","text":"security, less the price at which the security was sold and may, theoretically, be unlimited.","page_number":109,"box":{"x":69,"y":574,"width":640,"height":11}},{"id":"80cfe256-1e4b-45da-8fde-3adf1564409d","block_type":"box","text":"A Fund may also make shor t sales “against the box” without being subject to such limitations.","page_number":109,"box":{"x":101,"y":597,"width":673,"height":11}},{"id":"bdd78638-9081-4d06-81f1-589f0dce294a","block_type":"box","text":"A Fund must comply with Rule 18f-4 under the Investment Company Act with respect to its shor t sale","page_number":109,"box":{"x":101,"y":619,"width":721,"height":11}},{"id":"ebc85849-29d7-4728-b5df-4f535db3688b","block_type":"box","text":"borrowings, which are considered Derivatives Transactions under the Rule. See “—Derivatives — Regulation of","page_number":109,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"d4fb01e1-5c39-4471-a018-d6780f2ebe1a","block_type":"box","text":"Derivatives — Rule 18f-4 under the Investment Company Act” above.","page_number":109,"box":{"x":70,"y":649,"width":489,"height":12}},{"id":"ac3f39ae-2a78-4085-885f-ad8d55880547","block_type":"box","text":"Shor t sales are also subject to cer tain SEC regulations and cer tain European Union and United Kingdom","page_number":109,"box":{"x":102,"y":672,"width":745,"height":11}},{"id":"8b6e4327-8fa5-4bc3-b3ca-e1d51f61f7af","block_type":"box","text":"regulations (under which there are restrictions on net shor t sales in cer tain securities). If the SEC or regulatory","page_number":109,"box":{"x":69,"y":687,"width":793,"height":11}},{"id":"f5831ee3-063a-419b-bc50-b75604863a5a","block_type":"box","text":"authorities in other jurisdictions were to adopt additional restrictions regarding shor t sales, they could restrict a","page_number":109,"box":{"x":69,"y":703,"width":796,"height":11}},{"id":"35ddb801-d533-4218-bb55-8ef447965e41","block_type":"box","text":"Fund’s ability to engage in shor t sales in cer tain circumstances, and the Fund may be unable to execute its","page_number":109,"box":{"x":70,"y":718,"width":766,"height":11}},{"id":"c6dcc35a-ffd6-469e-a878-aeb7e9db6506","block_type":"box","text":"investment strategy as a result. In response to market events, the SEC and regulatory authorities in other","page_number":109,"box":{"x":70,"y":733,"width":754,"height":11}},{"id":"8edded73-5851-4f6a-a852-048e9fb9415a","block_type":"box","text":"jurisdictions may adopt (and in cer tain cases, have adopted) bans or other restrictions on shor t sales of cer tain","page_number":109,"box":{"x":67,"y":748,"width":800,"height":11}},{"id":"f18bd939-4351-4cd5-ab79-2ee55afea2f0","block_type":"box","text":"securities or on derivatives and other hedging instruments used to achieve a similar economic effect. Such bans or","page_number":109,"box":{"x":69,"y":763,"width":823,"height":11}},{"id":"1905947f-2ed2-4e9d-98d8-5a5cec1034d1","block_type":"box","text":"other restrictions may make it impossible for a Fund to execute cer tain investment strategies and may have a","page_number":109,"box":{"x":69,"y":778,"width":782,"height":11}},{"id":"245f9898-86a9-4efb-b955-21eae77b0ca2","block_type":"box","text":"material adverse effect on the Fund’s ability to generate returns.","page_number":109,"box":{"x":69,"y":793,"width":460,"height":11}},{"id":"c74e4f02-60e8-40a2-bdfe-7acfec3d07fb","block_type":"box","text":"Special Purpose Acquisition Companies.","page_number":109,"box":{"x":101,"y":816,"width":293,"height":11}},{"id":"c0c8d748-cfe6-4fe5-a487-8f834c2863fd","block_type":"box","text":"A Fund may invest in stock, warrants, rights and other interests issued","page_number":109,"box":{"x":400,"y":816,"width":504,"height":11}},{"id":"a34da25d-2ac9-4d86-97a9-b84eec48b3d9","block_type":"box","text":"by special purpose acquisition companies (“SPACs”) or similar special purpose entities that pool funds to seek","page_number":109,"box":{"x":69,"y":831,"width":791,"height":11}},{"id":"539bc855-4c71-463b-af16-0a4b1bfe49d2","block_type":"box","text":"potential acquisition oppor tunities, including the “founder’s” shares and warrants described below. A SPAC is a","page_number":109,"box":{"x":70,"y":846,"width":793,"height":11}},{"id":"99a9ed69-dd9c-4306-9ce5-79489f0b1156","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":109,"box":{"x":70,"y":861,"width":824,"height":11}},{"id":"9554ed40-2ba9-471c-9bf3-9acc31a33292","block_type":"box","text":"more operating businesses or assets. In connection with forming a SPAC, the SPAC’s sponsors acquire “founder’s”","page_number":109,"box":{"x":69,"y":876,"width":821,"height":11}},{"id":"d1184b03-f19c-4aa9-84d7-bb10fa03d17f","block_type":"box","text":"shares, generally for nominal consideration, and warrants that will result in the sponsors owning a specified","page_number":109,"box":{"x":69,"y":891,"width":768,"height":12}},{"id":"ee64522e-82b2-4373-88c1-a0798c3a28c0","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":109,"box":{"x":70,"y":906,"width":826,"height":12}},{"id":"1a658622-a53e-4d45-b348-0423589c65a3","block_type":"box","text":"II-74","page_number":109,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7daa236f-8c34-4faa-b27d-8a9bc9665bc8","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":109,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d0ce32bd-78ee-4028-a082-cbb12bfc569c","block_type":"box","text":"conducts an IPO, it has selected a management team but has not yet identified a specific acquisition oppor tunity.","page_number":110,"box":{"x":69,"y":45,"width":809,"height":11}},{"id":"02149acd-f876-469a-8750-5c9e98da96f0","block_type":"box","text":"Unless and until an acquisition is completed, a SPAC generally invests its assets in U.S. Government securities,","page_number":110,"box":{"x":70,"y":60,"width":797,"height":11}},{"id":"737477e1-8a48-4b53-917f-9f3d5041f2bd","block_type":"box","text":"money market securities and cash. If an acquisition that meets the requirements for the SPAC is not completed","page_number":110,"box":{"x":69,"y":75,"width":795,"height":11}},{"id":"31a9aba8-4d5f-4617-8545-0ba9866ad166","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":110,"box":{"x":68,"y":90,"width":788,"height":11}},{"id":"7487dbd3-eba8-4dce-8f7b-07dd00b59381","block_type":"box","text":"warrants expire, and the “founder’s” shares and such warrants become wor thless. Because SPACs and similar","page_number":110,"box":{"x":68,"y":105,"width":794,"height":11}},{"id":"d984ef8d-4b75-45b8-96ef-12b9a3104cc9","block_type":"box","text":"entities are in essence “blank check” companies without operating histories or ongoing business operations (other","page_number":110,"box":{"x":69,"y":120,"width":820,"height":12}},{"id":"b55319f8-3d55-42d8-8a66-9ef5064ed3d5","block_type":"box","text":"than identifying and pursuing acquisitions), the potential for the long-term capital appreciation of their securities is","page_number":110,"box":{"x":68,"y":135,"width":815,"height":12}},{"id":"7d659661-7e99-496f-a66d-03de4d45074d","block_type":"box","text":"par ticularly dependent on the ability of the SPAC’s management to identify and complete a profitable acquisition.","page_number":110,"box":{"x":70,"y":150,"width":802,"height":12}},{"id":"0fa2c719-52ea-4957-bd51-4ff4f54e6ef0","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":110,"box":{"x":68,"y":166,"width":812,"height":11}},{"id":"6d373b5e-c0c8-4b17-8957-8fb007917822","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":110,"box":{"x":69,"y":181,"width":838,"height":11}},{"id":"d756a937-3492-49fe-8734-4b8faf5a916b","block_type":"box","text":"cer tain industries or regions, which may ultimately lead to an increase in the volatility of their prices following the","page_number":110,"box":{"x":69,"y":196,"width":806,"height":11}},{"id":"92bf1c38-3e19-4c75-84c6-54b0c8888bec","block_type":"box","text":"acquisition. In addition, some of these securities may be considered illiquid and/or subject to restrictions on resale.","page_number":110,"box":{"x":69,"y":211,"width":828,"height":11}},{"id":"f81f24c9-89fe-4321-a6db-5df9cfd4f812","block_type":"box","text":"Standby Commitment Agreements.","page_number":110,"box":{"x":101,"y":234,"width":255,"height":11}},{"id":"43f0e928-4382-48b4-83f0-761d617186b1","block_type":"box","text":"Standby commitment agreements commit a Fund, for a stated period of","page_number":110,"box":{"x":362,"y":234,"width":511,"height":11}},{"id":"1562d6f6-ce3d-48f6-872a-f9ff3a9394e8","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":110,"box":{"x":68,"y":249,"width":834,"height":11}},{"id":"d7c491f1-9fc0-4798-ae22-29b4f51dc0e5","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":110,"box":{"x":68,"y":264,"width":834,"height":11}},{"id":"83bb40bb-0868-46e2-befa-d84dd3dc9475","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":110,"box":{"x":70,"y":279,"width":802,"height":11}},{"id":"f8d47b2c-7de2-46c6-aaaf-204909c0472c","block_type":"box","text":"agreements for the purpose of investing in the security underlying the commitment at a price that is considered","page_number":110,"box":{"x":69,"y":294,"width":793,"height":11}},{"id":"3dd0d361-daa7-4857-90fc-095ac7654aa5","block_type":"box","text":"advantageous to the Fund.","page_number":110,"box":{"x":69,"y":309,"width":188,"height":11}},{"id":"e027bb74-3b42-4c54-88c2-a9f4a56dc176","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":110,"box":{"x":101,"y":332,"width":800,"height":11}},{"id":"1f36062d-a581-40ae-a0a1-01557d1dfd9b","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":110,"box":{"x":68,"y":347,"width":816,"height":11}},{"id":"a08a19d6-d151-48f4-ac55-dd5d6d0a187b","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":110,"box":{"x":69,"y":362,"width":835,"height":11}},{"id":"4f604e04-cff0-4d10-a96b-bfe85c2052b9","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":110,"box":{"x":69,"y":377,"width":828,"height":12}},{"id":"e185cbc3-6775-4ab6-afd7-e5bbf041d21a","block_type":"box","text":"The purchase of a security pursuant to a standby commitment agreement and the related commitment fee will","page_number":110,"box":{"x":101,"y":400,"width":785,"height":11}},{"id":"c6de623a-2285-404c-9408-e442d2fd0b9e","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":110,"box":{"x":69,"y":415,"width":837,"height":11}},{"id":"2962987d-11fc-416b-a5cf-14ecb5ff3e7f","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":110,"box":{"x":68,"y":430,"width":815,"height":11}},{"id":"febd710d-f8d3-4f67-b7b7-98433fa2a20e","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":110,"box":{"x":69,"y":445,"width":792,"height":11}},{"id":"79e8bca9-d6fe-4f50-9ba4-5b923695788b","block_type":"box","text":"income on the expiration date of the standby commitment.","page_number":110,"box":{"x":70,"y":460,"width":415,"height":12}},{"id":"1fe7b14a-ad7a-4b24-8119-a1b5cd6955f8","block_type":"box","text":"Standby commitments will only be entered into with dealers, banks and broker-dealers which, in the Manager’s","page_number":110,"box":{"x":102,"y":483,"width":789,"height":11}},{"id":"a6530046-e40a-4537-9eec-1b11172d2ed1","block_type":"box","text":"or sub-adviser’s opinion, present minimal credit risks. A Fund will acquire standby commitments solely to facilitate","page_number":110,"box":{"x":69,"y":498,"width":814,"height":11}},{"id":"4947e817-f60a-40b8-9146-5a8c65435c22","block_type":"box","text":"por tfolio liquidity and not to exercise its rights thereunder for trading purposes. Standby commitments will be valued","page_number":110,"box":{"x":70,"y":513,"width":827,"height":12}},{"id":"0a42c9d8-eedf-46e6-a887-517b5fa79978","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":110,"box":{"x":69,"y":528,"width":815,"height":12}},{"id":"ce7721d2-463a-40de-8934-fa3474f1c94b","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":110,"box":{"x":68,"y":543,"width":817,"height":12}},{"id":"0890f8a8-6d0d-4786-a08d-1f8475321e8b","block_type":"box","text":"reflected as a realized gain or loss when the commitment is exercised or expires.","page_number":110,"box":{"x":69,"y":559,"width":578,"height":11}},{"id":"4b22c66a-c656-4ee8-ba01-da3c07ed9243","block_type":"box","text":"Stripped Securities.","page_number":110,"box":{"x":101,"y":581,"width":143,"height":11}},{"id":"52e4a627-b3cf-4c87-b7a9-a99049e95e4b","block_type":"box","text":"Stripped securities are created when the issuer separates the interest and principal","page_number":110,"box":{"x":251,"y":581,"width":596,"height":11}},{"id":"37bda082-5796-49ff-b68f-3fa4ef5782b5","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":110,"box":{"x":69,"y":596,"width":839,"height":12}},{"id":"992d5256-de63-46b7-821e-a6987c2c50d9","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":110,"box":{"x":70,"y":612,"width":818,"height":11}},{"id":"bea8b49d-3b77-4922-a6ba-5d796c86b5b4","block_type":"box","text":"payments (the principal only or “PO” security). Some stripped securities may receive a combination of interest and","page_number":110,"box":{"x":70,"y":627,"width":813,"height":11}},{"id":"2fe3c039-3281-4c12-aac3-bdeeb4421625","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":110,"box":{"x":70,"y":642,"width":777,"height":11}},{"id":"fb642be8-4b58-4983-a672-1519a5a19e0e","block_type":"box","text":"principal payments (including prepayments) on the related underlying assets, and principal payments may have a","page_number":110,"box":{"x":70,"y":657,"width":802,"height":11}},{"id":"0c151d61-3f4a-47b8-8a60-377d3e68f4a2","block_type":"box","text":"material effect on yield to maturity. If the underlying assets experience greater than anticipated prepayments of","page_number":110,"box":{"x":69,"y":672,"width":794,"height":11}},{"id":"fb22d006-02d2-48de-a3da-5871fa827eba","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":110,"box":{"x":70,"y":687,"width":837,"height":11}},{"id":"c0a2c9ec-5ee3-4a17-be5b-92343bd962d3","block_type":"box","text":"than anticipated prepayments of principal, the yield on POs could be adversely affected. Stripped securities may be","page_number":110,"box":{"x":68,"y":702,"width":823,"height":11}},{"id":"bc51c1a6-1bd6-4a69-9d77-ab048b0302c7","block_type":"box","text":"highly sensitive to changes in interest rates and rates of prepayment.","page_number":110,"box":{"x":69,"y":717,"width":494,"height":12}},{"id":"9c609f6a-6286-4ca1-8efe-38219b406f49","block_type":"box","text":"Structured Notes.","page_number":110,"box":{"x":101,"y":740,"width":130,"height":9}},{"id":"d4d498ee-7c54-4387-826b-f90600cf3658","block_type":"box","text":"Structured notes and other related instruments purchased by a Fund are generally privately","page_number":110,"box":{"x":237,"y":740,"width":650,"height":11}},{"id":"de523c76-f42e-4fca-857f-32d98bc1f85b","block_type":"box","text":"negotiated debt obligations where the principal and/or interest is determined by reference to the per formance of a","page_number":110,"box":{"x":69,"y":755,"width":818,"height":11}},{"id":"d483d193-045b-4d6c-ba5b-245859cbb2aa","block_type":"box","text":"specific asset, benchmark asset, market or interest rate (“reference measure”). Issuers of structured notes generally","page_number":110,"box":{"x":69,"y":770,"width":839,"height":12}},{"id":"09d7599b-2698-48f3-a0f6-3e3a7a00161e","block_type":"box","text":"include corporations and banks. The interest rate or the principal amount payable upon maturity or redemption may","page_number":110,"box":{"x":70,"y":786,"width":821,"height":11}},{"id":"39c0b5b2-3893-450a-95cb-aeb19f60bc74","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":110,"box":{"x":70,"y":801,"width":839,"height":11}},{"id":"54cb0f41-f896-4525-b7b6-67a09db9e73d","block_type":"box","text":"may provide that, in cer tain circumstances, no principal is due at maturity and, therefore, may result in a loss of","page_number":110,"box":{"x":69,"y":816,"width":801,"height":11}},{"id":"d8ea6603-3540-4667-842a-67bba9ecc019","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":110,"box":{"x":70,"y":831,"width":813,"height":11}},{"id":"03c91406-831e-4673-b0c8-b7d4c2baf245","block_type":"box","text":"vary widely, depending on a variety of factors, including the volatility of the reference measure.","page_number":110,"box":{"x":68,"y":846,"width":673,"height":11}},{"id":"33bf5c7f-c280-44e6-8cee-0b65d8a603e5","block_type":"box","text":"Structured notes may be positively or negatively indexed, so the appreciation of the reference measure may","page_number":110,"box":{"x":102,"y":869,"width":768,"height":11}},{"id":"90ee7c0f-65ac-4cfa-a773-24f6d04c8997","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":110,"box":{"x":70,"y":884,"width":821,"height":11}},{"id":"29a5a009-db7c-4bb2-8fb9-a4dfa2f98f4b","block_type":"box","text":"II-75","page_number":110,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"1e89c95a-4cd3-4ac7-bb73-ca48c1a73e6b","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":110,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c325c60d-6c71-4b8f-81d3-1cebd80cddae","block_type":"box","text":"structured notes may be determined by applying a multiplier to the per formance or differential per formance of","page_number":111,"box":{"x":69,"y":45,"width":787,"height":11}},{"id":"957157e9-4c1b-4ff6-9afe-cbdb98f7aaf1","block_type":"box","text":"reference measures. Application of a multiplier involves leverage that will serve to magnify the potential for gain and","page_number":111,"box":{"x":69,"y":60,"width":827,"height":11}},{"id":"3a0a4fbf-3203-4b62-a233-296386814158","block_type":"box","text":"the risk of loss.","page_number":111,"box":{"x":68,"y":75,"width":110,"height":9}},{"id":"5fb03253-27b4-487d-a295-23d98d7f80d1","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":111,"box":{"x":101,"y":98,"width":759,"height":11}},{"id":"c7183fae-f2f6-4c13-b254-2fc127b1a1a2","block_type":"box","text":"Structured notes may also be more volatile, less liquid, and more difficult to price accurately than less complex","page_number":111,"box":{"x":69,"y":113,"width":795,"height":11}},{"id":"93d65633-7f7e-48a5-b4e2-004f3ddccb70","block_type":"box","text":"securities and instruments or more traditional debt securities. The secondary market for structured notes could be","page_number":111,"box":{"x":69,"y":128,"width":819,"height":11}},{"id":"7f210a31-7d18-4bfc-aa39-f971e9525aec","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":111,"box":{"x":70,"y":143,"width":821,"height":11}},{"id":"ab302f10-9a3d-47a3-ae69-d76445998b33","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":111,"box":{"x":69,"y":158,"width":827,"height":11}},{"id":"ae17cd58-c7a3-44f3-b145-c25db705c8e6","block_type":"box","text":"losses and could make structured notes more difficult for the Fund to value accurately.","page_number":111,"box":{"x":70,"y":173,"width":618,"height":11}},{"id":"77875601-d5ba-4754-b765-897da98be684","block_type":"box","text":"Taxability Risk.","page_number":111,"box":{"x":103,"y":196,"width":109,"height":11}},{"id":"79d82855-8a00-4e30-8f50-cfaf7c80c013","block_type":"box","text":"Cer tain of the Funds intend to minimize the payment of taxable income to shareholders by","page_number":111,"box":{"x":218,"y":196,"width":644,"height":11}},{"id":"59dd2869-c9a6-423e-b703-fc82bea47de3","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":111,"box":{"x":70,"y":211,"width":817,"height":11}},{"id":"5d0a98eb-44a4-4ac5-933c-20997bb62d02","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":111,"box":{"x":68,"y":226,"width":827,"height":11}},{"id":"37c01ae4-6712-4a5d-84b5-6fcba88ea71c","block_type":"box","text":"be excludable from gross income for U.S. federal income tax purposes. Such securities, however, may be determined","page_number":111,"box":{"x":69,"y":241,"width":835,"height":11}},{"id":"fd1e7689-72d6-4771-a85b-d307d3c8cbf8","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":111,"box":{"x":68,"y":256,"width":809,"height":11}},{"id":"92514267-9abc-455b-a3ae-57ff8307e22e","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":111,"box":{"x":69,"y":271,"width":832,"height":12}},{"id":"bb8ee407-a5a2-45d2-abc8-33e748e433bf","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":111,"box":{"x":69,"y":286,"width":816,"height":12}},{"id":"12e24858-8147-4b2c-b39c-cb74ae3a67a0","block_type":"box","text":"paid by the Fund as “exempt interest dividends” could be adversely affected, subjecting the Fund’s shareholders to","page_number":111,"box":{"x":70,"y":302,"width":822,"height":11}},{"id":"0d4a4dba-d53d-4cf4-af29-cbda756a1e3e","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":111,"box":{"x":70,"y":317,"width":818,"height":11}},{"id":"434f823c-9857-4532-8921-ee14a0084fea","block_type":"box","text":"Fund is subsequently determined to be taxable, the Fund will dispose of that security as soon as reasonably","page_number":111,"box":{"x":70,"y":332,"width":771,"height":11}},{"id":"c86a8cc6-3c92-403d-9a88-0f4f505cbf92","block_type":"box","text":"practicable. In addition, future laws, regulations, rulings or cour t decisions may cause interest on municipal","page_number":111,"box":{"x":70,"y":347,"width":765,"height":11}},{"id":"cf551507-de8a-4692-837a-d53403ac81e8","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":111,"box":{"x":69,"y":362,"width":834,"height":11}},{"id":"d0b4a5cc-f3be-4649-8eb1-09517f3ca8c2","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":111,"box":{"x":68,"y":377,"width":807,"height":11}},{"id":"00308b65-05f9-4586-ac92-fc671a382cb4","block_type":"box","text":"local intangible personal proper ty tax, or may otherwise prevent the Fund from realizing the full current benefit of the","page_number":111,"box":{"x":70,"y":392,"width":830,"height":12}},{"id":"06de3106-2f60-474c-a30d-1877dd0b103d","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":111,"box":{"x":68,"y":407,"width":838,"height":12}},{"id":"9dbcf4c4-d174-43b0-8e03-cf5e78171070","block_type":"box","text":"the value of an investment in the Fund.","page_number":111,"box":{"x":68,"y":423,"width":278,"height":9}},{"id":"20014a89-faa4-421c-99f8-639403dcfaca","block_type":"box","text":"Temporary Defensive Measures.","page_number":111,"box":{"x":103,"y":445,"width":230,"height":11}},{"id":"b25ada0d-34ac-49e3-8b2c-65b3ca3db98f","block_type":"box","text":"As a temporary defensive measure, including to respond to adverse market,","page_number":111,"box":{"x":339,"y":445,"width":542,"height":12}},{"id":"e949bd66-da97-4940-a4d0-1d5473215236","block_type":"box","text":"economic, political or other conditions, a Fund may depar t from its principal investment strategies and may invest","page_number":111,"box":{"x":69,"y":460,"width":811,"height":12}},{"id":"d6e2f138-a74b-40b7-977f-998ccc463f55","block_type":"box","text":"without limitation in cash, high quality money market instruments, or other shor t term investments. Cer tain Funds","page_number":111,"box":{"x":68,"y":476,"width":813,"height":11}},{"id":"b7594b34-0e74-4d07-98a3-b82d9bb8ef43","block_type":"box","text":"may also invest in cash and other such instruments pending investment or to meet anticipated redemption requests.","page_number":111,"box":{"x":69,"y":491,"width":833,"height":11}},{"id":"946fdcec-8712-4615-8453-b9256d9804e4","block_type":"box","text":"High quality money market instruments include U.S. Government obligations, U.S. Government agency obligations,","page_number":111,"box":{"x":70,"y":506,"width":813,"height":11}},{"id":"68a397c5-9d23-4d03-aa79-b26ba4365fe7","block_type":"box","text":"dollar denominated obligations of foreign issuers, bank obligations, including U.S. subsidiaries and branches of","page_number":111,"box":{"x":69,"y":521,"width":795,"height":11}},{"id":"dc3d6b72-afc6-44a5-a98a-8f394d5ab847","block_type":"box","text":"foreign banks, corporate obligations, commercial paper, repurchase agreements and obligations of supranational","page_number":111,"box":{"x":68,"y":536,"width":806,"height":11}},{"id":"829ae23f-6646-4ff5-8ec5-84394cdb3ba5","block_type":"box","text":"organizations. Generally, such obligations will mature within one year from the date of settlement but may mature","page_number":111,"box":{"x":69,"y":551,"width":808,"height":11}},{"id":"4129ea6a-e1f8-469d-8d0a-4fcc66a623c4","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":111,"box":{"x":68,"y":566,"width":820,"height":11}},{"id":"33e71c40-894b-4d07-9549-7876069965f7","block_type":"box","text":"its investment objective.","page_number":111,"box":{"x":70,"y":582,"width":171,"height":10}},{"id":"99ef5cb8-6144-4948-8990-a77afc85ade7","block_type":"box","text":"U.S. Government Obligations.","page_number":111,"box":{"x":102,"y":604,"width":213,"height":11}},{"id":"ded3bac8-cea6-4029-bf06-3576020c6aa1","block_type":"box","text":"A Fund may purchase obligations issued or guaranteed by the U.S. Government","page_number":111,"box":{"x":321,"y":604,"width":566,"height":11}},{"id":"60b29e81-ed39-4364-838d-3dfd5261ca2d","block_type":"box","text":"and U.S. Government agencies and instrumentalities. Obligations of cer tain agencies and instrumentalities of the","page_number":111,"box":{"x":69,"y":619,"width":810,"height":11}},{"id":"4a2d6dbe-adc2-4a20-936d-34440b0bdded","block_type":"box","text":"U.S. Government are suppor ted by the full faith and credit of the U.S. Treasury. Others are suppor ted by the right of","page_number":111,"box":{"x":70,"y":634,"width":826,"height":12}},{"id":"a30b72d2-ec9a-4f5d-a3e5-d08e94749800","block_type":"box","text":"the issuer to borrow from the U.S. Treasury; and still others are suppor ted only by the credit of the agency or","page_number":111,"box":{"x":68,"y":649,"width":779,"height":12}},{"id":"3ad3554e-98dd-45c1-b465-dbdc4877854d","block_type":"box","text":"instrumentality issuing the obligation. No assurance can be given that the U.S. Government will provide financial","page_number":111,"box":{"x":70,"y":664,"width":798,"height":12}},{"id":"6dd211fd-a2bd-4957-8752-7db572ca9f76","block_type":"box","text":"suppor t to U.S. Government-sponsored instrumentalities if it is not obligated to do so by law. Cer tain U.S. Treasury","page_number":111,"box":{"x":69,"y":680,"width":822,"height":11}},{"id":"c55866aa-06da-47d9-ac79-46d46ec9b17b","block_type":"box","text":"and agency securities may be held by trusts that issue par ticipation cer tificates (such as Treasury income growth","page_number":111,"box":{"x":69,"y":695,"width":809,"height":11}},{"id":"db686e82-1bb8-485e-bc08-1943464540f0","block_type":"box","text":"receipts and cer tificates of accrual on Treasury cer tificates). These cer tificates, as well as Treasury receipts and","page_number":111,"box":{"x":69,"y":710,"width":805,"height":11}},{"id":"8f95f297-e14d-40a9-b299-1fb417c3a566","block_type":"box","text":"other stripped securities, represent beneficial ownership interests in either future interest payments or the future","page_number":111,"box":{"x":69,"y":725,"width":807,"height":11}},{"id":"1b7cb1c0-f4d9-4c51-91da-0c1b204d577b","block_type":"box","text":"principal payments on U.S. Government obligations. These instruments are issued at a discount to their “face value”","page_number":111,"box":{"x":70,"y":740,"width":832,"height":11}},{"id":"32900e5e-f349-4cb7-b3ea-7090039bfcf9","block_type":"box","text":"and may (par ticularly in the case of stripped mor tgage-backed securities) exhibit greater price volatility than ordinary","page_number":111,"box":{"x":69,"y":755,"width":829,"height":11}},{"id":"49c80afe-52d1-4f61-9c38-fc1e6c16988f","block_type":"box","text":"debt securities because of the manner in which their principal and interest are returned to investors.","page_number":111,"box":{"x":69,"y":770,"width":716,"height":11}},{"id":"0f851d2e-fdab-4339-a953-2950ea367edf","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":111,"box":{"x":102,"y":793,"width":800,"height":11}},{"id":"b5342d22-061a-439f-b020-7d8b13608b2b","block_type":"box","text":"Treasury Notes and Treasury Bonds and the obligations of the Federal Housing Administration, Farmers Home","page_number":111,"box":{"x":68,"y":808,"width":785,"height":11}},{"id":"f1a5ac06-f562-4962-ba1e-21cd851e51a2","block_type":"box","text":"Administration, Expor t-Impor t Bank of the United States, Small Business Administration, Ginnie Mae, Fannie Mae,","page_number":111,"box":{"x":68,"y":823,"width":813,"height":11}},{"id":"c8f4eef2-b6e3-430c-a726-20f12920cc97","block_type":"box","text":"Federal Financing Bank, General Services Administration, Student Loan Marketing Association, Central Bank for","page_number":111,"box":{"x":70,"y":838,"width":794,"height":12}},{"id":"547f140d-b15f-46d3-8ad5-8cf208b4cf4c","block_type":"box","text":"Cooperatives, Federal Home Loan Banks, Freddie Mac, Federal Intermediate Credit Banks, Federal Land Banks, Farm","page_number":111,"box":{"x":69,"y":854,"width":835,"height":10}},{"id":"d8d61db9-f6f4-442b-b6fd-ab9ebf81a5f3","block_type":"box","text":"Credit Banks System, Maritime Administration, Tennessee Valley Authority and Washington D.C. Armory Board. The","page_number":111,"box":{"x":69,"y":869,"width":818,"height":11}},{"id":"26bb0df1-97ee-408b-ba45-72d721395999","block_type":"box","text":"Funds may also invest in mor tgage-related securities issued or guaranteed by U.S. Government agencies and","page_number":111,"box":{"x":70,"y":884,"width":777,"height":11}},{"id":"f0dc67c1-7c9d-4ac4-a960-a7ea87dfc876","block_type":"box","text":"instrumentalities, including such instruments as obligations of Ginnie Mae, Fannie Mae and Freddie Mac.","page_number":111,"box":{"x":70,"y":899,"width":749,"height":11}},{"id":"ff70c387-7624-48fb-be5d-458dd45e2966","block_type":"box","text":"II-76","page_number":111,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"0cfb1c85-6b8f-4793-b883-fcac0d57d833","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":111,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"20f23f34-9e86-4b92-9f64-86ac1fe7a873","block_type":"box","text":"U.S. Treasury Obligations.","page_number":112,"box":{"x":103,"y":45,"width":183,"height":11}},{"id":"51497e6e-fe3d-450c-b755-3aec841887a8","block_type":"box","text":"Treasury obligations may differ in their interest rates, maturities, times of issuance","page_number":112,"box":{"x":292,"y":45,"width":593,"height":11}},{"id":"96a4295a-cb93-4d42-859f-6a822e85c0ca","block_type":"box","text":"and other characteristics. Obligations of U.S. Government agencies and authorities are suppor ted by varying degrees","page_number":112,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"f20dbaf3-6447-42cb-993d-21bcff50b082","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":112,"box":{"x":69,"y":75,"width":827,"height":11}},{"id":"3e0fb866-a4ad-41ed-9c17-69bf50f4b387","block_type":"box","text":"that the U.S. Government will provide financial suppor t to its agencies and authorities if it is not obligated by law to","page_number":112,"box":{"x":68,"y":90,"width":823,"height":11}},{"id":"f2122241-3f20-48b7-ab39-0e5368fcbe45","block_type":"box","text":"do so.","page_number":112,"box":{"x":69,"y":105,"width":42,"height":9}},{"id":"3395813b-f147-4702-bdd8-7928d0a24404","block_type":"box","text":"U.S. Treasury Rolls","page_number":112,"box":{"x":102,"y":128,"width":139,"height":11}},{"id":"8eac8266-9815-418b-821e-4d3f90d86160","block_type":"box","text":".","page_number":112,"box":{"x":241,"y":135,"width":3,"height":2}},{"id":"c6858322-41b5-47db-a979-79910432b468","block_type":"box","text":"Cer tain Funds may invest in U.S. Treasury rolls. In a U.S. Treasury roll transaction, the Fund","page_number":112,"box":{"x":250,"y":128,"width":656,"height":11}},{"id":"3cab657b-3db8-4bf0-b49c-5d06e6157905","block_type":"box","text":"sells a treasury security to a counterpar ty with a simultaneous agreement to repurchase the same security at an","page_number":112,"box":{"x":69,"y":143,"width":804,"height":11}},{"id":"9d870e8f-06a0-4059-8c37-13d4c1828d03","block_type":"box","text":"agreed upon price and future settlement date. U.S. Treasury roll transactions may incrementally adjust the average","page_number":112,"box":{"x":69,"y":158,"width":820,"height":11}},{"id":"85776582-9ac2-4c7d-bad9-abfedee53755","block_type":"box","text":"maturity of a Fund’s por tfolio and increase the interest yield on the Fund’s por tfolio by extending the average maturity","page_number":112,"box":{"x":69,"y":173,"width":840,"height":11}},{"id":"71bc7203-50fe-41f7-af31-66b13472ca5f","block_type":"box","text":"of the por tfolio in a normal yield curve environment. During the period before the settlement date of a U.S. Treasury","page_number":112,"box":{"x":69,"y":188,"width":828,"height":12}},{"id":"daa1d42f-da8d-4714-b77a-ec51f7573bb8","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":112,"box":{"x":69,"y":204,"width":775,"height":11}},{"id":"af41c6d6-5852-4fc4-b141-7e2008866cb4","block_type":"box","text":"securities it is purchasing until after the settlement date. A Fund could suffer an oppor tunity loss if the counterpar ty","page_number":112,"box":{"x":69,"y":218,"width":829,"height":12}},{"id":"5ac60742-4634-4aa7-bcea-0e843bbda400","block_type":"box","text":"to the U.S. Treasury roll transaction failed to per form its obligations on the settlement date.","page_number":112,"box":{"x":68,"y":234,"width":657,"height":11}},{"id":"e82b8be4-34f0-45cc-b2d8-93c6fb051727","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":112,"box":{"x":101,"y":256,"width":756,"height":12}},{"id":"fb6bae53-0faa-4695-8908-55264e94f1cc","block_type":"box","text":"purchase price of those securities. U.S. Treasury rolls are speculative techniques that can be deemed to involve","page_number":112,"box":{"x":70,"y":271,"width":800,"height":12}},{"id":"870780ed-006e-4f7f-aeaf-f9a261d8b3e4","block_type":"box","text":"leverage. There is no assurance that U.S. Treasury rolls can be successfully employed.","page_number":112,"box":{"x":70,"y":286,"width":617,"height":12}},{"id":"0c5c1dbb-ad1b-44c3-a878-dac3c2da0c20","block_type":"box","text":"Utility Industries.","page_number":112,"box":{"x":102,"y":309,"width":124,"height":11}},{"id":"e70e5c34-d375-4edf-8740-db63f1ae55b2","block_type":"box","text":"Risks that are intrinsic to the utility industries include difficulty in obtaining an adequate return","page_number":112,"box":{"x":233,"y":309,"width":674,"height":11}},{"id":"92dfc9d2-0a56-4cc9-a644-1ce3f514f1e3","block_type":"box","text":"on invested capital, difficulty in financing large construction programs during an inflationary period, restrictions on","page_number":112,"box":{"x":69,"y":324,"width":812,"height":12}},{"id":"cbbcabad-df59-41b2-a619-04d5c936f3ee","block_type":"box","text":"operations and increased cost and delays attributable to environmental considerations and regulation, difficulty in","page_number":112,"box":{"x":69,"y":339,"width":812,"height":12}},{"id":"deb7e597-10fa-44a1-9c5e-4f3f14c63a7f","block_type":"box","text":"raising capital in adequate amounts on reasonable terms in periods of high inflation and unsettled capital markets,","page_number":112,"box":{"x":69,"y":355,"width":821,"height":11}},{"id":"249edaa5-a042-48de-9c83-b6d1258b8273","block_type":"box","text":"technological innovations that may render existing plants, equipment or products obsolete, the potential impact of","page_number":112,"box":{"x":68,"y":370,"width":815,"height":11}},{"id":"39cf94d6-5d40-4dd9-8ca5-98aeed2c28fc","block_type":"box","text":"natural or man-made disasters, increased costs and reduced availability of cer tain types of fuel, occasional reduced","page_number":112,"box":{"x":69,"y":385,"width":827,"height":11}},{"id":"f3c83be4-5f0e-4a93-afa0-d546a96c723f","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":112,"box":{"x":69,"y":400,"width":795,"height":11}},{"id":"ccb1e6b4-dd51-48e2-a9aa-b412ce7d19e0","block_type":"box","text":"energy policy and lengthy delays and greatly increased costs and other problems associated with the design,","page_number":112,"box":{"x":69,"y":415,"width":774,"height":11}},{"id":"49e2da06-3020-434f-be5e-e29df567b713","block_type":"box","text":"construction, licensing, regulation and operation of nuclear facilities for electric generation, including, among other","page_number":112,"box":{"x":69,"y":430,"width":817,"height":11}},{"id":"6d2a1cdf-8083-43f9-9828-37ac3e0eea4b","block_type":"box","text":"considerations, the problems associated with the use of radioactive materials and the disposal of radioactive wastes.","page_number":112,"box":{"x":69,"y":445,"width":839,"height":11}},{"id":"70f79da6-d66c-4f95-8765-b3a82f761f41","block_type":"box","text":"There are substantial differences among the regulatory practices and policies of various jurisdictions, and any given","page_number":112,"box":{"x":68,"y":460,"width":827,"height":12}},{"id":"b9eee12f-7cc6-4fdf-8c9f-917099d52180","block_type":"box","text":"regulatory agency may make major shifts in policy from time to time. There is no assurance that regulatory","page_number":112,"box":{"x":69,"y":475,"width":761,"height":12}},{"id":"cf0fbf97-54a0-44ac-a524-4475915711e3","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":112,"box":{"x":69,"y":491,"width":821,"height":11}},{"id":"d68c4dc4-c333-4b2c-9237-c0a0b53561c3","block_type":"box","text":"dividends on common stocks issued by a utility company. Additionally, existing and possible future regulatory","page_number":112,"box":{"x":69,"y":506,"width":777,"height":11}},{"id":"1d86915e-977a-4362-8222-da87395a9681","block_type":"box","text":"legislation may make it even more difficult for utilities to obtain adequate relief. Cer tain of the issuers of securities","page_number":112,"box":{"x":70,"y":521,"width":820,"height":11}},{"id":"db8cf206-90eb-4350-9f9f-252d9a0bc463","block_type":"box","text":"held in the Fund’s por tfolio may own or operate nuclear generating facilities. Governmental authorities may from time","page_number":112,"box":{"x":69,"y":536,"width":835,"height":11}},{"id":"af68987b-6bf3-43cc-a8eb-54a72873b38f","block_type":"box","text":"to time review existing policies and impose additional requirements governing the licensing, construction and","page_number":112,"box":{"x":68,"y":551,"width":778,"height":11}},{"id":"70444719-93e9-467c-bc1a-4bcd6c5e4670","block_type":"box","text":"operation of nuclear power plants. Prolonged changes in climatic conditions can also have a significant impact on","page_number":112,"box":{"x":69,"y":566,"width":808,"height":11}},{"id":"ab994820-3da9-4eb7-92d3-6336c6f78756","block_type":"box","text":"both the revenues of an electric and gas utility as well as the expenses of a utility, par ticularly a hydro-based electric","page_number":112,"box":{"x":69,"y":581,"width":831,"height":12}},{"id":"9dd3cdec-8df5-4486-ba14-0a417179f893","block_type":"box","text":"utility.","page_number":112,"box":{"x":69,"y":597,"width":39,"height":11}},{"id":"ece64f02-8b35-4265-89b4-24141ee74f64","block_type":"box","text":"Companies in the utilities sector may be adversely affected by changes in exchange rates, domestic and","page_number":112,"box":{"x":102,"y":619,"width":744,"height":11}},{"id":"6627b235-ce90-4e0a-b1dd-f0e6a00edaf6","block_type":"box","text":"international competition, and governmental limitations on rates charged to customers. The value of regulated utility","page_number":112,"box":{"x":70,"y":634,"width":828,"height":12}},{"id":"fd69780d-c5e0-4780-b3c7-b1c606d968fd","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":112,"box":{"x":69,"y":649,"width":817,"height":12}},{"id":"0867ce3d-8b8c-4237-8964-1f602f3d5d9d","block_type":"box","text":"interest rates and therefore may lead to volatility in per formance.","page_number":112,"box":{"x":70,"y":664,"width":464,"height":12}},{"id":"147d7d5e-7771-4ce3-b999-f45371257357","block_type":"box","text":"Utility companies in the United States and in foreign countries are generally subject to regulation. In the United","page_number":112,"box":{"x":102,"y":687,"width":789,"height":11}},{"id":"98b2c19a-eb58-40e7-a5e6-3ad6643cc541","block_type":"box","text":"States, most utility companies are regulated by state and/or federal authorities. Such regulation is intended to","page_number":112,"box":{"x":69,"y":702,"width":790,"height":12}},{"id":"0fcbde4d-91a3-42fd-88ca-e05b0b2df8bc","block_type":"box","text":"ensure appropriate standards of service and adequate capacity to meet public demand. Generally, prices are also","page_number":112,"box":{"x":69,"y":717,"width":811,"height":12}},{"id":"e50be930-d7bc-42f6-b32e-3388ccb119f1","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":112,"box":{"x":69,"y":732,"width":824,"height":12}},{"id":"ae609018-3f61-43d5-8c55-21bb8379a661","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":112,"box":{"x":68,"y":748,"width":781,"height":11}},{"id":"57d84add-a37b-4b85-98d1-4916fee68ad8","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":112,"box":{"x":69,"y":763,"width":826,"height":11}},{"id":"d741b16d-a825-4565-b665-b351a4b117dc","block_type":"box","text":"continue in the future.","page_number":112,"box":{"x":69,"y":778,"width":156,"height":9}},{"id":"646a44d7-47a3-4019-ab96-d09f19bf3293","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":112,"box":{"x":101,"y":801,"width":763,"height":11}},{"id":"3093cc28-4da3-4336-a8a7-f12e112ab4ce","block_type":"box","text":"countries. In recent years, changes in regulation in the United States increasingly have allowed utility companies to","page_number":112,"box":{"x":69,"y":816,"width":820,"height":11}},{"id":"d2b3b43a-6ad9-4812-8710-a7cb3758c78f","block_type":"box","text":"provide services and products outside their traditional geographic areas and lines of business, creating new areas of","page_number":112,"box":{"x":70,"y":831,"width":834,"height":11}},{"id":"38dcf019-6bc6-4301-a240-45881af53291","block_type":"box","text":"competition within the industries. In some instances, utility companies are operating on an unregulated basis.","page_number":112,"box":{"x":69,"y":846,"width":784,"height":11}},{"id":"343ba4b7-df9f-4288-befe-a8e9f4916921","block_type":"box","text":"Because of trends toward deregulation and the evolution of independent power producers as well as new entrants to","page_number":112,"box":{"x":70,"y":861,"width":830,"height":11}},{"id":"74738fd5-e9c6-445b-82b2-d1da2e6b3a51","block_type":"box","text":"the field of telecommunications, non-regulated providers of utility services have become a significant par t of their","page_number":112,"box":{"x":68,"y":876,"width":809,"height":11}},{"id":"c142523c-2dc1-477e-9812-152ce4392d2b","block_type":"box","text":"respective industries. The Manager believes that the emergence of competition and deregulation will result in cer tain","page_number":112,"box":{"x":69,"y":891,"width":834,"height":12}},{"id":"8a96c0a4-1b82-4934-b40c-2150588eda4f","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":112,"box":{"x":69,"y":906,"width":825,"height":12}},{"id":"6e6df33d-7db3-42b7-8a14-a471c6cf0c1e","block_type":"box","text":"II-77","page_number":112,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"74f96fa8-1587-4922-97f1-a1c245c5388c","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":112,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"706d9244-2834-480c-b4f7-f6ee5b7b6108","block_type":"box","text":"to defend their core business from increased competition and may be less profitable. Reduced profitability, as well as","page_number":113,"box":{"x":68,"y":45,"width":840,"height":11}},{"id":"beb3fff5-c828-438f-81b5-8bc3f2914870","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":113,"box":{"x":69,"y":60,"width":796,"height":11}},{"id":"355b5a70-2a2e-4873-b17b-65e70a738160","block_type":"box","text":"rates. As deregulation allows utility companies to diversify outside of their original geographic regions and their","page_number":113,"box":{"x":69,"y":75,"width":790,"height":11}},{"id":"d5b7fc6a-1bf1-43d6-a5c6-92e985a885df","block_type":"box","text":"traditional lines of business, utility companies may engage in riskier ventures. Therefore, deregulation may eliminate","page_number":113,"box":{"x":68,"y":90,"width":831,"height":11}},{"id":"0c7159c0-79f9-479b-9cae-bb9fc244c91f","block_type":"box","text":"restrictions on the maximum level of profits of cer tain utility companies, but may also subject these companies to","page_number":113,"box":{"x":69,"y":105,"width":812,"height":11}},{"id":"bcf97d34-b6ed-424e-baad-17f032e0a047","block_type":"box","text":"greater risk of loss. The Manager seeks to take advantage of favorable investment oppor tunities that may arise from","page_number":113,"box":{"x":68,"y":120,"width":833,"height":12}},{"id":"a2335bdc-63bc-4a9d-8272-894673258ea4","block_type":"box","text":"these structural changes. Of course, there can be no assurance that favorable developments will occur in the future.","page_number":113,"box":{"x":68,"y":135,"width":831,"height":12}},{"id":"fe16c221-e4a3-41db-a72c-f8804244ba09","block_type":"box","text":"Foreign utility companies are also subject to regulation, although such regulations may or may not be","page_number":113,"box":{"x":102,"y":158,"width":720,"height":11}},{"id":"ce1271ac-7d75-40ea-8397-70247343e2c8","block_type":"box","text":"comparable to those in the United States. Foreign utility companies may be more heavily regulated by their respective","page_number":113,"box":{"x":69,"y":173,"width":838,"height":11}},{"id":"18d8b707-4e31-4443-bc9e-4a2b8c62a33a","block_type":"box","text":"governments than utilities in the United States and, as in the United States, generally are required to seek","page_number":113,"box":{"x":68,"y":188,"width":762,"height":12}},{"id":"3121a7ee-97c1-47ca-ab93-ed44f5552141","block_type":"box","text":"government approval for rate increases. In addition, many foreign utilities use fuels that may cause more pollution","page_number":113,"box":{"x":68,"y":203,"width":815,"height":12}},{"id":"0078dcd5-8afb-455d-8a95-0ea4a05577f6","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":113,"box":{"x":68,"y":219,"width":801,"height":11}},{"id":"b0ec69de-61fb-4faf-9550-d3d8df3155d3","block_type":"box","text":"meet any proposed pollution restrictions. Foreign regulatory systems vary from country to country and may evolve in","page_number":113,"box":{"x":69,"y":234,"width":828,"height":11}},{"id":"24a7da87-35ba-423f-aa3b-8ceb42c6e537","block_type":"box","text":"ways different from regulation in the United States.","page_number":113,"box":{"x":68,"y":249,"width":365,"height":11}},{"id":"f57e9c76-ced6-49a0-b7a9-ada2c8619d72","block_type":"box","text":"A Fund’s investment policies are designed to enable it to capitalize on evolving investment oppor tunities","page_number":113,"box":{"x":101,"y":272,"width":745,"height":11}},{"id":"59b0e062-01b3-4979-a8c5-90559d21aa4b","block_type":"box","text":"throughout the world. For example, the rapid growth of cer tain foreign economies will necessitate expansion of","page_number":113,"box":{"x":68,"y":286,"width":790,"height":12}},{"id":"4b21cbed-3d9f-42d7-9a21-cff878615bf4","block_type":"box","text":"capacity in the utility industries in those countries. Although many foreign utility companies currently are government","page_number":113,"box":{"x":69,"y":302,"width":833,"height":11}},{"id":"7827b7cf-45af-424f-8fc2-6649b9d023ca","block_type":"box","text":"owned, thereby limiting current investment oppor tunities for a Fund, the Manager believes that, in order to attract","page_number":113,"box":{"x":69,"y":317,"width":810,"height":11}},{"id":"715d31b4-34d2-4e3a-8e9b-edd5e6d8bcf2","block_type":"box","text":"significant capital for growth, foreign governments are likely to seek global investors through the privatization of their","page_number":113,"box":{"x":69,"y":332,"width":831,"height":11}},{"id":"1cb63e5d-ec37-4bb2-a883-ba9ec4d0a2a2","block_type":"box","text":"utility industries. Privatization, which refers to the trend toward investor ownership of assets rather than government","page_number":113,"box":{"x":69,"y":347,"width":828,"height":11}},{"id":"650a3122-94eb-40e9-8291-c1cd8f8116a5","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":113,"box":{"x":69,"y":362,"width":832,"height":11}},{"id":"3631cae5-01eb-4d6b-8a1b-aa507483e09d","block_type":"box","text":"assurance that such favorable developments will occur or that investment oppor tunities in foreign markets will","page_number":113,"box":{"x":69,"y":377,"width":786,"height":12}},{"id":"bac4d564-ddd6-4a3f-8a58-7a7969d52fc6","block_type":"box","text":"increase.","page_number":113,"box":{"x":70,"y":393,"width":63,"height":8}},{"id":"2f0cff0c-f195-4021-8558-9a1c18bbcf18","block_type":"box","text":"The revenues of domestic and foreign utility companies generally reflect the economic growth and development","page_number":113,"box":{"x":101,"y":415,"width":793,"height":11}},{"id":"41601d73-d43d-4ebb-8885-d56c5be3b645","block_type":"box","text":"in the geographic areas in which they do business. The Manager will take into account anticipated economic growth","page_number":113,"box":{"x":70,"y":430,"width":821,"height":11}},{"id":"afbcce26-e181-4c6d-a9e6-cd497a412f8a","block_type":"box","text":"rates and other economic developments when selecting securities of utility companies.","page_number":113,"box":{"x":69,"y":445,"width":619,"height":12}},{"id":"f3838883-c8d2-4d4f-9055-df3185f8ff37","block_type":"box","text":"Electric.","page_number":113,"box":{"x":102,"y":468,"width":54,"height":9}},{"id":"96e3ad2d-6f37-4510-8223-535be4f6efc4","block_type":"box","text":"The electric utility industry consists of companies that are engaged principally in the generation,","page_number":113,"box":{"x":163,"y":468,"width":684,"height":11}},{"id":"03e2b917-5e78-470b-b1c1-dfa4db46ca86","block_type":"box","text":"transmission and sale of electric energy, although many also provide other energy-related services. In the past,","page_number":113,"box":{"x":68,"y":483,"width":793,"height":11}},{"id":"f42dcfb6-7ad4-450d-8495-470cc3e00a26","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":113,"box":{"x":69,"y":498,"width":814,"height":11}},{"id":"11e91d56-18bb-4eb7-aa2e-c1337cc078c2","block_type":"box","text":"near completion of major construction programs. In addition, many of these companies have generated cash flows in","page_number":113,"box":{"x":69,"y":513,"width":833,"height":12}},{"id":"bb407951-038b-44f8-a152-243166fd7c59","block_type":"box","text":"excess of current operating expenses and construction expenditures, permitting some degree of diversification into","page_number":113,"box":{"x":69,"y":528,"width":821,"height":12}},{"id":"8edd7cbb-5f83-4310-ad47-e274528cf3af","block_type":"box","text":"unregulated businesses. Some electric utilities have also taken advantage of the right to sell power outside of their","page_number":113,"box":{"x":69,"y":543,"width":823,"height":12}},{"id":"7911058f-9665-403e-9a9e-ef2cba5cd6e2","block_type":"box","text":"traditional geographic areas. Electric utility companies have historically been subject to the risks associated with","page_number":113,"box":{"x":68,"y":559,"width":803,"height":11}},{"id":"ad731f0a-dcdf-40cf-9b4f-ddc92ef91a74","block_type":"box","text":"increases in fuel and other operating costs, high interest costs on borrowings needed for capital construction","page_number":113,"box":{"x":70,"y":574,"width":778,"height":11}},{"id":"871f7053-a6cd-4117-8713-be271eaa453c","block_type":"box","text":"programs, costs associated with compliance with environmental and safety regulations and changes in the regulatory","page_number":113,"box":{"x":70,"y":589,"width":836,"height":11}},{"id":"725eac9c-d57f-4b08-8938-55ce5da26a15","block_type":"box","text":"climate. As interest rates declined, many utilities refinanced high cost debt and in doing so improved their fixed","page_number":113,"box":{"x":69,"y":604,"width":793,"height":11}},{"id":"6dd89399-99d6-42a3-90b2-89862e2e4e34","block_type":"box","text":"charges coverage. Regulators, however, lowered allowed rates of return as interest rates declined and thereby","page_number":113,"box":{"x":69,"y":619,"width":786,"height":11}},{"id":"1927dfa2-77e1-4c5d-a65a-d987f6031710","block_type":"box","text":"caused the benefits of the rate declines to be shared wholly or in par t with customers. In a period of rising interest","page_number":113,"box":{"x":69,"y":634,"width":819,"height":12}},{"id":"f43938bc-10c9-47ca-9dc4-d53dfa98634c","block_type":"box","text":"rates, the allowed rates of return may not keep pace with the utilities’ increased costs. The construction and","page_number":113,"box":{"x":69,"y":649,"width":775,"height":12}},{"id":"45704fb2-fa50-4454-9fe1-d03cd643637a","block_type":"box","text":"operation of nuclear power facilities are subject to strict scrutiny by, and evolving regulations of, the Nuclear","page_number":113,"box":{"x":69,"y":664,"width":770,"height":12}},{"id":"c97ce815-f0cc-4631-afea-bd2e2a53ba07","block_type":"box","text":"Regulatory Commission and state agencies which have comparable jurisdiction. Strict scrutiny might result in higher","page_number":113,"box":{"x":70,"y":680,"width":826,"height":11}},{"id":"8b1457b9-c6f3-4c9f-ad88-4f1566c355eb","block_type":"box","text":"operating costs and higher capital expenditures, with the risk that the regulators may disallow inclusion of these","page_number":113,"box":{"x":69,"y":695,"width":800,"height":11}},{"id":"79815294-c400-458b-b315-0b3f85244c5d","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":113,"box":{"x":69,"y":710,"width":836,"height":11}},{"id":"8691bb67-6633-45bf-b9b0-3099a279b18b","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":113,"box":{"x":68,"y":725,"width":826,"height":11}},{"id":"dd4bc7d4-7baa-40a2-8dc8-69b2aed84163","block_type":"box","text":"and for decommissioning such plants.","page_number":113,"box":{"x":69,"y":740,"width":270,"height":11}},{"id":"a86de507-9c04-4b34-be19-1291c96f3385","block_type":"box","text":"The rating agencies look closely at the business profile of utilities. Ratings for companies are expected to be","page_number":113,"box":{"x":101,"y":763,"width":776,"height":11}},{"id":"2eb8e973-2146-48fe-922c-9b1e17014586","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":113,"box":{"x":70,"y":778,"width":802,"height":11}},{"id":"9e4188e1-7e59-403d-9c7c-2e93dbbe4e3e","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":113,"box":{"x":69,"y":793,"width":791,"height":11}},{"id":"9b760e7a-a4d4-4d85-b79f-3cb7aaa17cd2","block_type":"box","text":"competitive and the least regulated. On the other hand, companies that focus on transmission and distribution, which","page_number":113,"box":{"x":69,"y":808,"width":839,"height":11}},{"id":"fe74bfe4-339e-40a1-98e9-4e34bfad614a","block_type":"box","text":"is expected to be the least competitive and the more regulated par t of the business, may see higher ratings given the","page_number":113,"box":{"x":70,"y":823,"width":838,"height":12}},{"id":"05131eb4-847c-4ad6-953e-dfe9b6bc5c47","block_type":"box","text":"greater predictability of cash flow.","page_number":113,"box":{"x":68,"y":838,"width":239,"height":12}},{"id":"b3c5b425-b5a0-4e32-bd0d-3b748cfcbedf","block_type":"box","text":"A number of states are considering or have enacted deregulation proposals. The introduction of competition into","page_number":113,"box":{"x":101,"y":861,"width":801,"height":11}},{"id":"de47a22a-70a7-479e-9ae7-e99f6450c243","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":113,"box":{"x":68,"y":876,"width":821,"height":11}},{"id":"42def8f8-2ded-4de6-80b4-447a034596c9","block_type":"box","text":"default risk, and lower electric utility security prices. Such increased competition may also cause long-term contracts,","page_number":113,"box":{"x":69,"y":891,"width":835,"height":12}},{"id":"51b463df-cd93-453e-8a56-07e3ed5b4b78","block_type":"box","text":"which electric utilities previously entered into to buy power, to become “stranded assets” which have no economic","page_number":113,"box":{"x":68,"y":907,"width":815,"height":11}},{"id":"71783bd8-1c80-4ecb-8960-0bb4b92edf72","block_type":"box","text":"II-78","page_number":113,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7a1adf18-2553-4a0b-92a1-fad10b7adcc7","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":113,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c6d15a74-e23b-488c-8633-79fd15fd3ec9","block_type":"box","text":"value. Any loss associated with such contracts must be absorbed by ratepayers and investors. In addition, some","page_number":114,"box":{"x":68,"y":45,"width":803,"height":11}},{"id":"de0d1441-d5d3-4f5b-b803-54098b2b8516","block_type":"box","text":"electric utilities have acquired electric utilities overseas to diversify, enhance earnings and gain experience in","page_number":114,"box":{"x":69,"y":60,"width":777,"height":11}},{"id":"96ad7a72-cfb1-4559-bceb-e69eeab462ff","block_type":"box","text":"operating in a deregulated environment. In some instances, such acquisitions have involved significant borrowings,","page_number":114,"box":{"x":69,"y":75,"width":819,"height":11}},{"id":"d156a067-c2ee-400f-99e3-f271cb4a63c6","block_type":"box","text":"which have burdened the acquirer’s balance sheet. There is no assurance that current deregulation proposals will be","page_number":114,"box":{"x":68,"y":90,"width":835,"height":11}},{"id":"3a3cf826-0dc9-46d9-b9f2-1df34a79baa0","block_type":"box","text":"adopted. However, deregulation in any form could significantly impact the electric utilities industry.","page_number":114,"box":{"x":69,"y":105,"width":700,"height":11}},{"id":"5322d6c4-1e52-428f-985a-7cb737caf9e1","block_type":"box","text":"Telecommunications.","page_number":114,"box":{"x":103,"y":128,"width":147,"height":9}},{"id":"fc92a180-23a8-4f3d-913c-c8151ece88b6","block_type":"box","text":"The telecommunications industry today includes both traditional telephone companies, with","page_number":114,"box":{"x":256,"y":128,"width":652,"height":11}},{"id":"a7bb9361-ca37-4803-9fb8-571e33fbbe66","block_type":"box","text":"a history of broad market coverage and highly regulated businesses, and cable companies, which began as small,","page_number":114,"box":{"x":69,"y":143,"width":813,"height":11}},{"id":"86d9e974-44e1-450d-879b-8de6fedb85ef","block_type":"box","text":"lightly regulated businesses focused on limited markets. Today these two historically different businesses are","page_number":114,"box":{"x":70,"y":158,"width":782,"height":11}},{"id":"935fb114-8017-4c03-b1b0-4811d8b95df0","block_type":"box","text":"converging in an industry that is trending toward larger, competitive national and international markets with an","page_number":114,"box":{"x":69,"y":173,"width":786,"height":11}},{"id":"6d7ff0bc-18ee-4d32-9405-fef8cb7e03c3","block_type":"box","text":"emphasis on deregulation. Companies that distribute telephone services and provide access to the telephone","page_number":114,"box":{"x":69,"y":188,"width":784,"height":12}},{"id":"bf67fcf6-b63c-45b6-b939-6d93335c1ccf","block_type":"box","text":"networks still comprise the greatest por tion of this segment, but non-regulated activities such as wireless telephone","page_number":114,"box":{"x":69,"y":203,"width":830,"height":12}},{"id":"ce9c76e0-c43c-4455-ac81-b564dc8b653e","block_type":"box","text":"services, paging, data transmission and processing, equipment retailing, computer software and hardware and","page_number":114,"box":{"x":69,"y":218,"width":790,"height":12}},{"id":"e455dc87-2c03-4b6d-9a7e-0194a1a1324d","block_type":"box","text":"internet services are becoming increasingly significant components as well. In par ticular, wireless and internet","page_number":114,"box":{"x":70,"y":234,"width":788,"height":11}},{"id":"98ab5e9c-f92e-4e2f-9a83-c9b73d5c266d","block_type":"box","text":"telephone services continue to gain market share at the expense of traditional telephone companies. The presence","page_number":114,"box":{"x":68,"y":249,"width":825,"height":11}},{"id":"84c4a72f-f69c-46da-88f0-eb738d7a4efd","block_type":"box","text":"of unregulated companies in this industry and the entry of traditional telephone companies into unregulated or less","page_number":114,"box":{"x":69,"y":264,"width":823,"height":11}},{"id":"783065c4-b8c9-48aa-bfbc-2a054e58c4cd","block_type":"box","text":"regulated businesses provide significant investment oppor tunities with companies that may increase their earnings","page_number":114,"box":{"x":69,"y":279,"width":821,"height":11}},{"id":"a40887a2-f989-46da-8313-46ba4c63f725","block_type":"box","text":"at faster rates than had been allowed in traditional regulated businesses. Still, increasing competition, technological","page_number":114,"box":{"x":69,"y":294,"width":830,"height":11}},{"id":"a7d9ba32-ea23-4d13-8b23-4239e59badcb","block_type":"box","text":"innovations and other structural changes could adversely affect the profitability of such utilities and the growth rate","page_number":114,"box":{"x":70,"y":309,"width":821,"height":11}},{"id":"a3599ccf-a225-4379-b711-2b28d906e1c3","block_type":"box","text":"of their dividends. Given mergers and proposed legislation and enforcement changes, it is likely that both traditional","page_number":114,"box":{"x":69,"y":324,"width":827,"height":12}},{"id":"ed1c6c23-9fdf-4b33-9f3e-99c969859b9f","block_type":"box","text":"telephone companies and cable companies will continue to provide an expanding range of utility services to both","page_number":114,"box":{"x":68,"y":339,"width":804,"height":12}},{"id":"4e291c19-d31e-413e-96e4-8dcb347527e3","block_type":"box","text":"residential, corporate and governmental customers.","page_number":114,"box":{"x":69,"y":355,"width":367,"height":11}},{"id":"a2a44f2f-0ac0-4bdd-99b2-1cfc7465cf31","block_type":"box","text":"Gas.","page_number":114,"box":{"x":102,"y":377,"width":31,"height":9}},{"id":"4eaae12f-ef89-4e21-80c9-fb95a2a14a11","block_type":"box","text":"Gas transmission companies and gas distribution companies are undergoing significant changes. In the","page_number":114,"box":{"x":139,"y":377,"width":740,"height":12}},{"id":"fb6efa6b-76f5-42bb-bf47-c51e02820f46","block_type":"box","text":"United States, interstate transmission companies are regulated by the Federal Energy Regulatory Commission, which","page_number":114,"box":{"x":70,"y":392,"width":834,"height":12}},{"id":"2af5d99d-1d10-415e-aa77-59eda72aa5f0","block_type":"box","text":"is reducing its regulation of the industry. Many companies have diversified into oil and gas exploration and","page_number":114,"box":{"x":70,"y":407,"width":756,"height":12}},{"id":"a49f87c0-52f4-4ab5-95b8-640572e478fb","block_type":"box","text":"development, making returns more sensitive to energy prices. In the recent decade, gas utility companies have been","page_number":114,"box":{"x":69,"y":423,"width":831,"height":11}},{"id":"88723308-caa8-4ad0-8d08-f638a8d79e7e","block_type":"box","text":"adversely affected by disruptions in the oil industry and have also been affected by increased concentration and","page_number":114,"box":{"x":69,"y":438,"width":801,"height":11}},{"id":"2dadd593-4b3c-403b-b7a5-4d221c17dbfd","block_type":"box","text":"competition. In the opinion of the Manager, however, environmental considerations could improve the gas industry","page_number":114,"box":{"x":69,"y":453,"width":815,"height":11}},{"id":"d029d97f-62d4-4ca7-be32-2166b6e9869b","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":114,"box":{"x":69,"y":468,"width":782,"height":11}},{"id":"ad11347a-89f6-4d83-adc8-0298e6f93fc6","block_type":"box","text":"incremental shifts in fuel consumption toward natural gas and away from oil and coal, even for electricity generation.","page_number":114,"box":{"x":70,"y":483,"width":829,"height":11}},{"id":"2b7ba7f0-2713-4179-88bf-3dad6790c8d4","block_type":"box","text":"However, technological or regulatory changes within the industry may delay or prevent this result.","page_number":114,"box":{"x":70,"y":498,"width":691,"height":11}},{"id":"2a1d5b81-c0c2-4231-9d7d-c112f99f42c6","block_type":"box","text":"Water.","page_number":114,"box":{"x":103,"y":521,"width":42,"height":9}},{"id":"6fd44557-b2c0-4a3e-a847-c61733eb0ce7","block_type":"box","text":"Water supply utilities are companies that collect, purify, distribute and sell water. In the United States and","page_number":114,"box":{"x":151,"y":521,"width":754,"height":11}},{"id":"285b15d4-dded-4ec7-a990-217a584c9cd1","block_type":"box","text":"around the world the industry is highly fragmented because most of the supplies are owned by local authorities.","page_number":114,"box":{"x":69,"y":536,"width":796,"height":11}},{"id":"5255c825-1472-433a-a131-4d7b3b3900bd","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":114,"box":{"x":69,"y":551,"width":806,"height":11}},{"id":"643c1727-c6de-4f4b-abab-bc47e28c43cf","block_type":"box","text":"opinion of the Manager, there may be oppor tunities for cer tain companies to acquire other water utility companies","page_number":114,"box":{"x":69,"y":566,"width":814,"height":11}},{"id":"b221c77c-8a57-4e26-9f6f-6ab39dbce1cb","block_type":"box","text":"and for foreign acquisition of domestic companies. The Manager believes that favorable investment oppor tunities","page_number":114,"box":{"x":69,"y":581,"width":808,"height":12}},{"id":"27d46593-d92a-49c6-870a-b95a89a73a5d","block_type":"box","text":"may result from consolidation of this segment. As with other utilities, however, increased regulation, increased costs","page_number":114,"box":{"x":69,"y":596,"width":832,"height":12}},{"id":"0238a24c-30f0-485c-94e2-b35d4db6d279","block_type":"box","text":"and potential disruptions in supply may adversely affect investments in water supply utilities.","page_number":114,"box":{"x":69,"y":612,"width":662,"height":11}},{"id":"5863e514-443a-450b-a923-0885977849ea","block_type":"box","text":"Utility Industries Generally.","page_number":114,"box":{"x":103,"y":634,"width":186,"height":11}},{"id":"260a33d0-4f39-4d14-9876-5c159e7fdb6b","block_type":"box","text":"There can be no assurance that the positive developments noted above, including","page_number":114,"box":{"x":296,"y":634,"width":584,"height":12}},{"id":"b1255a2e-f12a-4dbd-9289-7a5ae945ba3a","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":114,"box":{"x":68,"y":649,"width":837,"height":12}},{"id":"be0c9a9c-31d1-4a78-81d6-84352a934a51","block_type":"box","text":"not develop in the future.","page_number":114,"box":{"x":69,"y":664,"width":178,"height":11}},{"id":"ee5b6ec6-3357-48f9-9c74-60074460be15","block_type":"box","text":"When-Issued Securities, Delayed Delivery Securities and Forward Commitments.","page_number":114,"box":{"x":103,"y":687,"width":585,"height":11}},{"id":"d31e46a7-c3da-4b9b-93ed-cba858964748","block_type":"box","text":"A Fund may purchase or sell","page_number":114,"box":{"x":694,"y":687,"width":200,"height":11}},{"id":"8c53266a-ffd8-4a2e-9b3c-a61f71385f97","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":114,"box":{"x":69,"y":703,"width":795,"height":10}},{"id":"ed007268-35c4-4508-a5e0-4bda01d2446f","block_type":"box","text":"delayed delivery basis or through a forward commitment (including on a TBA (to be announced) basis). These","page_number":114,"box":{"x":69,"y":717,"width":777,"height":12}},{"id":"9d853245-acc3-4416-803a-2996fc33eaaa","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":114,"box":{"x":68,"y":732,"width":820,"height":12}},{"id":"a5a525af-e06b-40cb-bb1c-00c031e5d8d0","block_type":"box","text":"taking place in the future. The Fund enters into these transactions to obtain what is considered an advantageous","page_number":114,"box":{"x":68,"y":748,"width":807,"height":11}},{"id":"d2d30515-dd1c-4d20-9e88-0d02d30f9d46","block_type":"box","text":"price to the Fund at the time of entering into the transaction.","page_number":114,"box":{"x":70,"y":763,"width":430,"height":11}},{"id":"82748a62-5708-4cf3-b78b-60f4c0084595","block_type":"box","text":"Pursuant to recommendations of the Treasury Market Practices Group, which is sponsored by the Federal","page_number":114,"box":{"x":102,"y":785,"width":750,"height":12}},{"id":"ace91898-b04c-4804-8ef5-c53510fcc53d","block_type":"box","text":"Reserve Bank of New York, a Fund or its counterpar ty generally will be required to post collateral when entering into","page_number":114,"box":{"x":70,"y":801,"width":823,"height":11}},{"id":"145f19f7-dcf0-48e9-8a75-4fe2a34ec1af","block_type":"box","text":"cer tain forward-settling transactions, including without limitation TBA transactions. FINRA rules have also been","page_number":114,"box":{"x":69,"y":816,"width":788,"height":11}},{"id":"5e3e5aba-3c79-44c1-8f47-bca5babfa5a4","block_type":"box","text":"implemented that include mandatory margin requirements for the TBA market with limited exceptions. The","page_number":114,"box":{"x":70,"y":831,"width":755,"height":11}},{"id":"7d6980a1-24db-475e-94cb-46956ab78c6f","block_type":"box","text":"collateralization of TBA trades is intended to mitigate counterpar ty credit risk between trade and settlement, but","page_number":114,"box":{"x":69,"y":846,"width":799,"height":11}},{"id":"a5811c4b-3f2d-449b-b939-e87f96a1f138","block_type":"box","text":"could increase the cost of TBA transactions and impose added operational complexity.","page_number":114,"box":{"x":69,"y":861,"width":614,"height":11}},{"id":"d6c2c551-9987-4921-97cb-3519b2d9d91e","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":114,"box":{"x":101,"y":884,"width":780,"height":11}},{"id":"75149766-fa8a-4555-8d09-e851d486987b","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":114,"box":{"x":70,"y":899,"width":823,"height":11}},{"id":"96585fe1-5bd6-4f7c-bb4e-b62c98cca018","block_type":"box","text":"II-79","page_number":114,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"6a2cbc1e-432b-4e23-b676-a112019d0125","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":114,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5b51e45f-87f3-4fe6-af79-bf49b35987b2","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":115,"box":{"x":69,"y":45,"width":838,"height":11}},{"id":"5eeaf246-cf77-4d77-b489-b7d8768499c4","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":115,"box":{"x":68,"y":60,"width":839,"height":11}},{"id":"b0ae0800-dac8-4c8e-8008-55167cdd1c10","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":115,"box":{"x":70,"y":75,"width":824,"height":11}},{"id":"7a42d835-76d0-45c9-b8c8-386e33ae834c","block_type":"box","text":"If deemed advisable as a matter of investment strategy, a Fund may dispose of or renegotiate a commitment","page_number":115,"box":{"x":102,"y":98,"width":776,"height":11}},{"id":"b32308d4-d278-4342-9c7b-64be07dd27b0","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":115,"box":{"x":69,"y":113,"width":795,"height":11}},{"id":"108d2e6e-5e52-4906-b266-88e1da9e30f1","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":115,"box":{"x":69,"y":128,"width":799,"height":11}},{"id":"e14f697a-edbc-49e9-8d69-4a7705f5b1c6","block_type":"box","text":"When a Fund engages in when-issued, TBA or forward commitment transactions, it relies on the other par ty to","page_number":115,"box":{"x":101,"y":150,"width":784,"height":12}},{"id":"032222d3-1055-4373-9994-6faf46210a1b","block_type":"box","text":"consummate the trade. Failure of such par ty to do so may result in the Fund’s incurring a loss or missing an","page_number":115,"box":{"x":69,"y":166,"width":772,"height":11}},{"id":"50b9f92d-8007-46eb-bc40-8f50d2acea23","block_type":"box","text":"oppor tunity to obtain a price considered to be advantageous.","page_number":115,"box":{"x":69,"y":181,"width":434,"height":11}},{"id":"5d9cb11d-8adf-4791-844a-c78002c3ba76","block_type":"box","text":"The market value of the securities underlying a commitment to purchase securities, and any subsequent","page_number":115,"box":{"x":101,"y":203,"width":745,"height":12}},{"id":"a53e5eb2-f495-49d3-af5b-6a2bba8b7494","block_type":"box","text":"fluctuations in their market value, is taken into account when determining the market value of a Fund star ting on the","page_number":115,"box":{"x":68,"y":218,"width":831,"height":12}},{"id":"2316a6b8-ccd3-4907-ba2c-e38d88922e21","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":115,"box":{"x":69,"y":234,"width":823,"height":11}},{"id":"8a8b9258-2997-4422-a4ea-704acd488869","block_type":"box","text":"to purchase until they are paid for and delivered on the settlement date.","page_number":115,"box":{"x":68,"y":249,"width":514,"height":11}},{"id":"d0ff2b8a-3ab3-4b24-8f35-f37e1d5bda74","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":115,"box":{"x":102,"y":271,"width":759,"height":12}},{"id":"72bfc76d-9db6-40e0-9a4a-7b667cdd5db9","block_type":"box","text":"securities (","page_number":115,"box":{"x":69,"y":287,"width":78,"height":11}},{"id":"9dc78bcc-3ed2-4064-ac5a-42fa3dad12f4","block_type":"box","text":"e.g.","page_number":115,"box":{"x":148,"y":288,"width":25,"height":10}},{"id":"3c11cb98-0fcc-493b-bc20-44abcacb097d","block_type":"box","text":", firm and standby commitments, including TBA commitments, and dollar rolls) and non-standard","page_number":115,"box":{"x":176,"y":286,"width":686,"height":12}},{"id":"246fdecf-33ae-4f14-acad-019bce6365a0","block_type":"box","text":"settlement cycle securities notwithstanding the limitation on the issuance of senior securities in Section 18 of the","page_number":115,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"c02e4bc5-974d-46fd-84a1-ee6f98104d0a","block_type":"box","text":"Investment Company Act, provided that the Fund intends to physically settle the transaction and the transaction will","page_number":115,"box":{"x":70,"y":317,"width":822,"height":11}},{"id":"75b12ca2-33d3-43cf-9311-a2b3247cc8fc","block_type":"box","text":"settle within 35 days of its trade date (the “Delayed-Settlement Securities Provision”). If a when-issued, forward","page_number":115,"box":{"x":69,"y":332,"width":802,"height":11}},{"id":"dd614d5b-d031-4f2f-8dce-5aec4275b18c","block_type":"box","text":"settling or non-standard settlement cycle security does not satisfy the Delayed-Settlement Securities Provision, then","page_number":115,"box":{"x":69,"y":347,"width":826,"height":11}},{"id":"cc1a4dd9-a4a3-4dc2-bdb4-2039514ccd15","block_type":"box","text":"it is treated as a Derivatives Transaction under Rule 18f-4. See “—Derivatives — Regulation of Derivatives — Rule","page_number":115,"box":{"x":70,"y":362,"width":816,"height":11}},{"id":"4c4be742-29c5-4ee1-80ba-587585334f81","block_type":"box","text":"18f-4 under the Investment Company Act” above.","page_number":115,"box":{"x":70,"y":377,"width":349,"height":11}},{"id":"07d7fdfc-dd53-48f4-8481-d86580f2669b","block_type":"box","text":"Regulations adopted by global prudential regulators require cer tain bank-regulated counterpar ties and cer tain of","page_number":115,"box":{"x":102,"y":400,"width":800,"height":11}},{"id":"38630c15-e7e7-4fee-aca7-8d3f727bca5f","block_type":"box","text":"their affiliates to include in cer tain financial contracts, including many agreements with respect to when-issued, TBA","page_number":115,"box":{"x":68,"y":415,"width":829,"height":11}},{"id":"76afcc8f-fd62-4b6e-af25-37ab840917ec","block_type":"box","text":"and forward commitment transactions, terms that delay or restrict the rights of counterpar ties, such as a Fund, to","page_number":115,"box":{"x":69,"y":430,"width":814,"height":11}},{"id":"4b1323e8-db49-4366-beec-0aab795d4985","block_type":"box","text":"terminate such agreements, foreclose upon collateral, exercise other default rights or restrict transfers of credit","page_number":115,"box":{"x":68,"y":445,"width":799,"height":12}},{"id":"cb5a1efc-dc1d-4507-ba7f-2b0ea2731671","block_type":"box","text":"suppor t in the event that the counterpar ty and/or its affiliates are subject to cer tain types of resolution or insolvency","page_number":115,"box":{"x":69,"y":460,"width":836,"height":12}},{"id":"ed2b1146-d833-4600-9ac5-c61ef93c6978","block_type":"box","text":"proceedings. It is possible that these requirements, as well as potential additional government regulation and other","page_number":115,"box":{"x":70,"y":476,"width":824,"height":11}},{"id":"e1ee5446-08d7-4638-8652-4fc5e73b6a3f","block_type":"box","text":"developments in the market, could adversely affect a Fund’s ability to terminate existing agreements with respect to","page_number":115,"box":{"x":69,"y":491,"width":829,"height":11}},{"id":"19efd424-010b-460e-ab60-4c4de9325cbc","block_type":"box","text":"these transactions or to realize amounts to be received under such agreements.","page_number":115,"box":{"x":68,"y":506,"width":573,"height":11}},{"id":"3bd8969d-c372-4a6d-9944-722d7dfde125","block_type":"box","text":"Yields and Ratings.","page_number":115,"box":{"x":103,"y":529,"width":139,"height":11}},{"id":"7383e049-6a07-464c-b713-6e5eb1c7100e","block_type":"box","text":"The yields on cer tain obligations are dependent on a variety of factors, including general","page_number":115,"box":{"x":247,"y":528,"width":628,"height":12}},{"id":"7d7268d5-e97f-46e0-99c2-88674bc971fc","block_type":"box","text":"market conditions, conditions in the par ticular market for the obligation, the financial condition of the issuer, the size","page_number":115,"box":{"x":69,"y":543,"width":834,"height":12}},{"id":"bcd6ac4a-7b2f-41dc-8dbc-5a3e09257776","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":115,"box":{"x":69,"y":559,"width":799,"height":11}},{"id":"933fba05-ba41-4bf3-af1e-e1c1bbc42513","block_type":"box","text":"represent their respective opinions as to the quality of the obligations they under take to rate. Ratings, however, are","page_number":115,"box":{"x":69,"y":574,"width":824,"height":11}},{"id":"8e1f80c4-804f-4f48-8e4b-4b787a4c3168","block_type":"box","text":"general and are not absolute standards of quality. Consequently, obligations with the same rating, maturity and","page_number":115,"box":{"x":68,"y":589,"width":792,"height":11}},{"id":"b00358ad-9dcb-463f-9155-78bb69a08afe","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":115,"box":{"x":70,"y":604,"width":827,"height":11}},{"id":"14912fd5-db52-4365-8111-e3013e57bf79","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":115,"box":{"x":69,"y":619,"width":786,"height":11}},{"id":"ad06c3ce-a3cc-4e0a-8a37-fc2db0ee32ba","block_type":"box","text":"continue to hold the security.","page_number":115,"box":{"x":69,"y":634,"width":204,"height":11}},{"id":"d04a583e-c36d-4319-bdb2-936d3ba97f40","block_type":"box","text":"Zero Coupon Securities.","page_number":115,"box":{"x":102,"y":657,"width":175,"height":11}},{"id":"af3f0af0-37b4-4609-87e6-4aa0824cc857","block_type":"box","text":"Zero coupon securities are securities that are sold at a discount to par value and do","page_number":115,"box":{"x":283,"y":657,"width":601,"height":11}},{"id":"682d8247-2fd4-4afe-8a5e-47bd065e448f","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":115,"box":{"x":69,"y":672,"width":837,"height":11}},{"id":"eb5540b0-fc10-46d0-a3bf-4b395ea7abb6","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":115,"box":{"x":69,"y":687,"width":822,"height":11}},{"id":"915605ec-6d2c-411d-bbe0-1e9e00585ebc","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":115,"box":{"x":68,"y":702,"width":814,"height":11}},{"id":"7b6bf23d-1cf4-4ed1-8b05-865774aa3a26","block_type":"box","text":"security.","page_number":115,"box":{"x":69,"y":718,"width":57,"height":11}},{"id":"321fa280-655f-4e48-bd3e-a058ef37d16f","block_type":"box","text":"While interest payments are not made on such securities, holders of such securities are deemed to have","page_number":115,"box":{"x":101,"y":740,"width":749,"height":11}},{"id":"42c074ac-86ff-4f45-b276-1a321fa4d958","block_type":"box","text":"received income (“phantom income”) annually, notwithstanding that cash may not be received currently. The effect of","page_number":115,"box":{"x":69,"y":755,"width":835,"height":11}},{"id":"6d77d679-25e3-46af-889b-ec2093443fe2","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":115,"box":{"x":69,"y":770,"width":833,"height":12}},{"id":"551eeddf-83c9-4fbf-836f-edf9b34f0641","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":115,"box":{"x":70,"y":785,"width":836,"height":12}},{"id":"f0551c69-847d-4693-a508-404070b21ba7","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":115,"box":{"x":69,"y":801,"width":804,"height":11}},{"id":"f82f114f-acbf-433d-af9b-f9900e768234","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":115,"box":{"x":68,"y":816,"width":824,"height":11}},{"id":"c28834cc-ae99-4eb5-ad2f-5935892a235f","block_type":"box","text":"future. For this reason, some of these securities may be subject to substantially greater price fluctuations during","page_number":115,"box":{"x":68,"y":831,"width":805,"height":11}},{"id":"77a75459-e244-42ef-857b-a82bb6051ac3","block_type":"box","text":"periods of changing market interest rates than are comparable securities that pay interest currently. Longer term zero","page_number":115,"box":{"x":70,"y":846,"width":837,"height":11}},{"id":"ae1277d8-57b9-4d57-8ae6-82d2c1652d1b","block_type":"box","text":"coupon bonds are more exposed to interest rate risk than shor ter term zero coupon bonds. These investments","page_number":115,"box":{"x":69,"y":861,"width":791,"height":11}},{"id":"ad93ba93-bde0-4a72-b292-c23d132a5124","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":115,"box":{"x":69,"y":876,"width":800,"height":11}},{"id":"3d5df70a-a595-42fb-9db5-b6805c7b2426","block_type":"box","text":"attract investors who are willing to defer receipt of cash.","page_number":115,"box":{"x":69,"y":891,"width":400,"height":12}},{"id":"262e0c4e-155c-42de-b893-6ad8a6f23b47","block_type":"box","text":"II-80","page_number":115,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"8301b206-a92e-46b6-8615-f06af14a3604","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":115,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ac695db7-2aa2-48a5-8885-6eb7175a8a81","block_type":"box","text":"A Fund accrues income with respect to these securities for U.S. federal income tax and accounting purposes","page_number":116,"box":{"x":101,"y":45,"width":775,"height":11}},{"id":"f681dd7f-c6c0-4438-a273-30ab37e37801","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":116,"box":{"x":70,"y":60,"width":827,"height":11}},{"id":"7836227d-0dc4-4b8b-9bab-6eab960515ce","block_type":"box","text":"liquidity in the event of adverse market conditions than comparably rated securities that pay cash interest at regular","page_number":116,"box":{"x":70,"y":75,"width":826,"height":11}},{"id":"a44d9684-02f6-4fa3-8f64-d699a53bd728","block_type":"box","text":"intervals.","page_number":116,"box":{"x":70,"y":90,"width":64,"height":9}},{"id":"07c3d977-74f8-40c3-b631-de6a719beeac","block_type":"box","text":"Fur ther, to maintain its qualification for pass-through treatment under the U.S. federal tax laws, a Fund is","page_number":116,"box":{"x":102,"y":113,"width":749,"height":11}},{"id":"ab17c999-87a0-4bc0-b950-f152616c2640","block_type":"box","text":"required to distribute income to its shareholders and, consequently, may have to dispose of other, more liquid","page_number":116,"box":{"x":69,"y":128,"width":784,"height":11}},{"id":"71b56f60-289d-4fa5-b62b-43a8085eb378","block_type":"box","text":"por tfolio securities under disadvantageous circumstances or may have to leverage itself by borrowing in order to","page_number":116,"box":{"x":70,"y":143,"width":799,"height":11}},{"id":"be9462e3-e172-497f-a437-36bb5d339bbc","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":116,"box":{"x":68,"y":158,"width":799,"height":11}},{"id":"79bc1fb8-3d36-493b-997f-76c5b70bd71a","block_type":"box","text":"exposure to zero coupon securities.","page_number":116,"box":{"x":69,"y":173,"width":253,"height":11}},{"id":"69b3f108-17d8-4d40-8216-4847815600e6","block_type":"box","text":"In addition to the above-described risks, there are cer tain other risks related to investing in zero coupon","page_number":116,"box":{"x":102,"y":196,"width":740,"height":11}},{"id":"3a3c4a79-354e-4846-be7f-1b501e695ffe","block_type":"box","text":"securities. During a period of severe market conditions, the market for such securities may become even less liquid.","page_number":116,"box":{"x":69,"y":211,"width":829,"height":11}},{"id":"b34fd9ee-8e3a-4b92-ae79-43f891aa770d","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":116,"box":{"x":70,"y":226,"width":829,"height":11}},{"id":"1a69d0da-925a-4a8f-a2a1-fb1e2fa26cf1","block_type":"box","text":"risks, including credit risk, will increase during the time these securities are held in the Fund’s por tfolio.","page_number":116,"box":{"x":69,"y":241,"width":741,"height":11}},{"id":"b0002242-8f0d-43ae-8a95-a595ca2bc06b","block_type":"box","text":"Suitability. (All Funds)","page_number":116,"box":{"x":101,"y":264,"width":161,"height":11}},{"id":"b97a9728-6f60-41a2-9dc0-8a735a8a5dd5","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":116,"box":{"x":101,"y":286,"width":793,"height":12}},{"id":"02e12e59-3922-4826-8c65-aec759d1e565","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":116,"box":{"x":68,"y":302,"width":811,"height":11}},{"id":"74bc9a5e-65d0-4cae-b235-061dbebbb741","block_type":"box","text":"investment program. The suitability for any par ticular investor of a purchase of shares in a Fund will depend upon,","page_number":116,"box":{"x":70,"y":317,"width":810,"height":11}},{"id":"d6bc4d21-efb8-4b67-9fe3-9c7b9fc43ac2","block_type":"box","text":"among other things, such investor’s investment objectives and such investor’s ability to accept the risks associated","page_number":116,"box":{"x":69,"y":332,"width":826,"height":11}},{"id":"3ec78f30-54e3-40fa-b0e9-85aa50b098f3","block_type":"box","text":"with investing in securities, including the risk of loss of principal.","page_number":116,"box":{"x":68,"y":347,"width":460,"height":11}},{"id":"6c76434a-0ad7-49db-a7dc-0cfd6986c677","block_type":"box","text":"Investment Restrictions. (All Funds)","page_number":116,"box":{"x":102,"y":370,"width":264,"height":11}},{"id":"7a1d0390-826c-49a3-b59a-5cbe441731e3","block_type":"box","text":"See “Investment Restrictions” or “Investment Policies,” as applicable in each Fund’s SAI for the specific","page_number":116,"box":{"x":102,"y":392,"width":745,"height":11}},{"id":"3cd3cbcb-da70-4232-b85e-5892d6db910a","block_type":"box","text":"fundamental and non-fundamental investment restrictions adopted by each Fund. In addition to those investment","page_number":116,"box":{"x":68,"y":407,"width":807,"height":12}},{"id":"e8c2211d-927d-433c-b4dc-469c15c43fed","block_type":"box","text":"restrictions, each Fund is also subject to the restrictions discussed below.","page_number":116,"box":{"x":69,"y":423,"width":528,"height":11}},{"id":"30e346f1-db16-45b0-91ae-6ff462c53500","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":116,"box":{"x":102,"y":445,"width":735,"height":12}},{"id":"93e40172-9abb-40d5-894e-fd7e99ff7533","block_type":"box","text":"company” for purposes of the Code. See “Dividends and Taxes — Taxes” or “Taxes.” To qualify, among other","page_number":116,"box":{"x":69,"y":460,"width":775,"height":12}},{"id":"c79bd949-7735-417b-b155-ffc7239db315","block_type":"box","text":"requirements, each Fund will limit its investments so that, at the close of each quar ter of the taxable year, (i) at least","page_number":116,"box":{"x":69,"y":475,"width":837,"height":12}},{"id":"6c36cd4d-0a52-4607-842c-4e503314e16e","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":116,"box":{"x":69,"y":491,"width":799,"height":11}},{"id":"e31d0a81-d588-4859-a58e-881ce5df4c9c","block_type":"box","text":"companies, U.S. Government Securities and other securities, with such other securities limited, in respect of any one","page_number":116,"box":{"x":69,"y":506,"width":837,"height":11}},{"id":"3d2b1e18-e6ce-4ab2-9f20-3f15a92af660","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":116,"box":{"x":70,"y":521,"width":825,"height":11}},{"id":"95a126e5-e578-42cd-9ec8-cbad82f20e1c","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":116,"box":{"x":68,"y":536,"width":802,"height":11}},{"id":"d98054f9-8796-40f2-acf1-2d9001080b77","block_type":"box","text":"(other than U.S. Government Securities or securities of other regulated investment companies) of any one issuer, any","page_number":116,"box":{"x":69,"y":551,"width":837,"height":11}},{"id":"9fce1774-e55e-4ab7-b66a-13878ee1ac3c","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":116,"box":{"x":68,"y":566,"width":819,"height":11}},{"id":"6265327f-0154-4636-82b4-7d59a61d2a96","block_type":"box","text":"businesses or related trades or businesses or in the securities of one or more qualified publicly traded par tnerships","page_number":116,"box":{"x":69,"y":581,"width":828,"height":11}},{"id":"34593d28-858e-43e4-a2e2-e1592debb3cd","block_type":"box","text":"(","page_number":116,"box":{"x":69,"y":597,"width":3,"height":10}},{"id":"425aab7f-29e5-4617-927b-a2b8f718920f","block_type":"box","text":"i.e.","page_number":116,"box":{"x":74,"y":597,"width":21,"height":8}},{"id":"1ac20c72-160f-40bc-b625-588901eb8c46","block_type":"box","text":", par tnerships that are traded on an established securities market or tradable on a secondary market, other than","page_number":116,"box":{"x":97,"y":597,"width":806,"height":11}},{"id":"fb8b095a-5f3f-489c-a010-05eead3e544d","block_type":"box","text":"par tnerships that derive 90% of their income from interest, dividends, capital gains and other traditionally permitted","page_number":116,"box":{"x":70,"y":612,"width":824,"height":11}},{"id":"5ed46297-b50a-4b49-93a0-268e3b0d4624","block_type":"box","text":"mutual fund income). For purposes of this restriction, the Municipal Funds generally will regard each state and each","page_number":116,"box":{"x":69,"y":627,"width":824,"height":11}},{"id":"e7264e55-1203-4a9c-af2d-86ccb7e58eea","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":116,"box":{"x":69,"y":642,"width":838,"height":11}},{"id":"2f81dd2a-3318-469f-9416-6f73a05d39d2","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":116,"box":{"x":69,"y":657,"width":815,"height":11}},{"id":"446eb754-12eb-40ce-b0a5-7026b859fd6c","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":116,"box":{"x":69,"y":672,"width":781,"height":11}},{"id":"b43c2a64-ac38-4d46-94b2-067b4e697169","block_type":"box","text":"government entity, then the entity with the ultimate responsibility for the payment of interest and principal may be","page_number":116,"box":{"x":68,"y":687,"width":810,"height":11}},{"id":"e1e3214f-ac76-4352-9f8a-892a239b4767","block_type":"box","text":"regarded as the sole issuer.","page_number":116,"box":{"x":69,"y":703,"width":198,"height":11}},{"id":"c6204798-c408-4c2f-bb32-eaef2232a777","block_type":"box","text":"Foreign government securities (unlike U.S. Government Securities) are not exempt from the 5%, 10% and 25%","page_number":116,"box":{"x":102,"y":725,"width":784,"height":11}},{"id":"c6f907d0-190f-4206-8f2b-d61ca106623e","block_type":"box","text":"diversification requirements of the Code discussed above and the securities of each foreign government issuer are","page_number":116,"box":{"x":69,"y":740,"width":819,"height":11}},{"id":"05643bba-5bb6-44ea-b02e-e56b6dd54562","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":116,"box":{"x":69,"y":755,"width":811,"height":11}},{"id":"8e738c02-05a2-4969-8af7-75096cde3e7c","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":116,"box":{"x":70,"y":770,"width":747,"height":12}},{"id":"8ed8d7b5-299a-4946-a202-0b9527638741","block_type":"box","text":"“diversified” under the Investment Company Act must satisfy the foregoing 5% and 10% requirements with respect to","page_number":116,"box":{"x":70,"y":785,"width":834,"height":12}},{"id":"d435da2b-a9f4-4e51-a158-da3a5434f309","block_type":"box","text":"75% of its total assets.","page_number":116,"box":{"x":69,"y":801,"width":165,"height":9}},{"id":"dd26f62c-bb32-4dea-94bd-9a6ceceebb76","block_type":"box","text":"II-81","page_number":116,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"e68d4219-44ff-444c-861d-deebfbdf9dc1","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":116,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7025e56b-5642-42b9-b7ff-69b1ae732c54","block_type":"box","text":"MANAGEMENT AND OTHER SERVICE ARRANGEMENTS","page_number":117,"box":{"x":268,"y":45,"width":442,"height":10}},{"id":"43fbdaad-769d-4074-8743-17d21c87dc83","block_type":"box","text":"Directors and Officers","page_number":117,"box":{"x":69,"y":76,"width":159,"height":8}},{"id":"20864dd0-f0b3-4d57-bca4-b9903bbb5b8f","block_type":"box","text":"See “Information on Directors and Officers, ‘—Biographical Information,’ ‘— Share Ownership’ and ‘—","page_number":117,"box":{"x":102,"y":98,"width":733,"height":11}},{"id":"33fa26e7-d1aa-49ca-bb82-89f277d643cd","block_type":"box","text":"Compensation of Directors’” or “Information on Trustees and Officers, ‘—Biographical Information,’ ‘— Share","page_number":117,"box":{"x":69,"y":113,"width":783,"height":12}},{"id":"01eba2aa-8779-4e7e-a75e-026be51ac76f","block_type":"box","text":"Ownership’ and ‘— Compensation of Trustees’,” as applicable, in Par t I of each Fund’s SAI for biographical and","page_number":117,"box":{"x":69,"y":128,"width":795,"height":12}},{"id":"191f97e6-1e8a-448c-a413-384f430b19dd","block_type":"box","text":"cer tain other information relating to the Directors and officers of your Fund, including Directors’ compensation.","page_number":117,"box":{"x":69,"y":143,"width":789,"height":12}},{"id":"c1f20dd2-40cd-4f0b-95cc-a76bd25861cd","block_type":"box","text":"Management Arrangements","page_number":117,"box":{"x":69,"y":174,"width":202,"height":11}},{"id":"f16ba1dd-ddeb-4451-8a2f-1dab611b243c","block_type":"box","text":"Management Services.","page_number":117,"box":{"x":102,"y":197,"width":162,"height":11}},{"id":"91c4ecea-13b0-484b-98e9-6abb9a76482d","block_type":"box","text":"The Manager provides each Fund with investment advisory and management services.","page_number":117,"box":{"x":270,"y":197,"width":615,"height":11}},{"id":"d9e85bab-8cb2-472b-95cc-02dde2f7012c","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":117,"box":{"x":69,"y":212,"width":836,"height":11}},{"id":"d78963e5-3373-45e2-82fc-9f63992e2326","block_type":"box","text":"por tfolio and reviews the Fund’s holdings in light of its own research analysis and that from other relevant sources.","page_number":117,"box":{"x":70,"y":227,"width":820,"height":11}},{"id":"931f7c15-7e65-4183-9b86-e071cbeea511","block_type":"box","text":"The responsibility for making decisions to buy, sell or hold a par ticular security rests with the Manager. The Manager","page_number":117,"box":{"x":68,"y":242,"width":832,"height":11}},{"id":"fa3067cf-59f5-4e2f-a7ec-ce48dcf4aeb4","block_type":"box","text":"per forms cer tain of the other administrative services and provides all the office space, facilities, equipment and","page_number":117,"box":{"x":70,"y":257,"width":801,"height":11}},{"id":"57637a36-c48e-46c5-a82c-f4d26d1115b3","block_type":"box","text":"necessary personnel for management of each Fund.","page_number":117,"box":{"x":69,"y":272,"width":370,"height":11}},{"id":"0931535f-2a03-4dcc-9e44-a8689d209c78","block_type":"box","text":"Each Feeder Fund invests all or a por tion of its assets in shares of a Master Por tfolio. To the extent a Feeder","page_number":117,"box":{"x":102,"y":295,"width":778,"height":11}},{"id":"4fa4c9ac-e820-466c-b0ce-d8c68adba0e4","block_type":"box","text":"Fund invests all of its assets in a Master Por tfolio, it does not invest directly in por tfolio securities and does not","page_number":117,"box":{"x":70,"y":310,"width":800,"height":11}},{"id":"13d98d08-fff4-44d0-bf94-f956d9f7d43f","block_type":"box","text":"require management services. For such Feeder Funds, por tfolio management occurs at the Master Por tfolio level.","page_number":117,"box":{"x":69,"y":325,"width":810,"height":11}},{"id":"60a52d4c-5b40-4b71-b078-4a5e041c16e9","block_type":"box","text":"Management Fee.","page_number":117,"box":{"x":102,"y":348,"width":126,"height":11}},{"id":"ea86804d-a3b7-40e6-89bd-632e4d1022d0","block_type":"box","text":"Each Fund has entered into a Management Agreement with the Manager pursuant to which","page_number":117,"box":{"x":235,"y":348,"width":646,"height":11}},{"id":"106c74dd-5013-49a6-81ce-7e872182a495","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":117,"box":{"x":68,"y":363,"width":841,"height":11}},{"id":"88b8a794-5709-44d4-bf98-bdda50b09ba5","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":117,"box":{"x":69,"y":378,"width":833,"height":11}},{"id":"1f6bd1de-71c3-4143-af50-7351bf36056b","block_type":"box","text":"fiscal years or other applicable periods, see “Management, Advisory and Other Service Arrangements —","page_number":117,"box":{"x":68,"y":393,"width":746,"height":11}},{"id":"f6cb9178-2e5b-41f1-b14b-54a76e7b55d7","block_type":"box","text":"Management Agreement” or “Management and Advisory Arrangements,” as applicable, in Par t I of each Fund’s SAI.","page_number":117,"box":{"x":70,"y":408,"width":825,"height":11}},{"id":"58b46416-46f2-4636-ac61-7b4d626cd0ca","block_type":"box","text":"For Funds that do not have an administrator, each Management Agreement obligates the Manager to provide","page_number":117,"box":{"x":102,"y":431,"width":774,"height":11}},{"id":"fe47cfab-e8d6-4092-a260-9166af831a6f","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":117,"box":{"x":69,"y":446,"width":826,"height":11}},{"id":"c2bdb855-426f-4865-a727-417462eff698","block_type":"box","text":"in connection with investment and economic research, trading and investment management of the Fund, as well as","page_number":117,"box":{"x":70,"y":461,"width":820,"height":11}},{"id":"0b56cb9b-6ff6-4517-8544-eb8b2e603a5c","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":117,"box":{"x":68,"y":476,"width":797,"height":11}},{"id":"4a5a969d-ef14-4279-99ab-e6f0a7274d61","block_type":"box","text":"incurred in the operation of that Fund, including among other things: taxes; expenses for legal and auditing services;","page_number":117,"box":{"x":70,"y":491,"width":830,"height":12}},{"id":"035b9d4f-2882-485c-9d67-49286fac0ff3","block_type":"box","text":"costs of preparing, printing and mailing proxies, shareholder repor ts, prospectuses and statements of additional","page_number":117,"box":{"x":69,"y":506,"width":802,"height":12}},{"id":"82979a4d-7ece-4d83-9375-b34eb9389948","block_type":"box","text":"information, except to the extent paid by BlackRock Investments, LLC (“BRIL” or the “Distributor”); charges of the","page_number":117,"box":{"x":70,"y":521,"width":809,"height":12}},{"id":"c6ba3d9b-3cff-4f43-b126-26013ba14e29","block_type":"box","text":"custodian and sub-custodian, and the transfer agent; expenses of redemption of shares; Commission fees; expenses","page_number":117,"box":{"x":69,"y":537,"width":838,"height":11}},{"id":"3490be43-f6e2-4015-9008-caad76ce3d1f","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":117,"box":{"x":69,"y":552,"width":830,"height":11}},{"id":"fd949f8e-223b-4c38-8b9b-6691e2e4b9d2","block_type":"box","text":"persons of a Fund as defined in the Investment Company Act; accounting and pricing costs (including the daily","page_number":117,"box":{"x":70,"y":567,"width":784,"height":11}},{"id":"132056cf-1348-4416-8edc-911f5a33f212","block_type":"box","text":"calculations of NAV); insurance; interest; brokerage costs; litigation and other extraordinary or non-recurring","page_number":117,"box":{"x":69,"y":582,"width":767,"height":11}},{"id":"2a307b20-c0a7-404a-82b2-e65704821038","block_type":"box","text":"expenses; and other expenses properly payable by the Fund. Cer tain accounting services are provided to each Fund","page_number":117,"box":{"x":69,"y":597,"width":825,"height":11}},{"id":"baac6997-e8b7-49b1-86bd-db94262fb073","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":117,"box":{"x":69,"y":612,"width":827,"height":11}},{"id":"e247e77c-dbab-47c5-95a1-125316d477b5","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":117,"box":{"x":69,"y":627,"width":814,"height":12}},{"id":"4051da4d-1645-4dae-89e5-02aeb62ec71d","block_type":"box","text":"each Fund. Each Fund pays a fee for these services. The Distributor pays cer tain promotional expenses of the Funds","page_number":117,"box":{"x":69,"y":642,"width":832,"height":12}},{"id":"3bde41b9-0331-4714-9734-cf3dfdbcad55","block_type":"box","text":"incurred in connection with the offering of shares of the Funds. Cer tain expenses are financed by each Fund pursuant","page_number":117,"box":{"x":70,"y":658,"width":839,"height":11}},{"id":"b2c4e890-382c-4e9b-b298-f35ff604c68a","block_type":"box","text":"to distribution plans in compliance with Rule 12b-1 under the Investment Company Act. See “Purchase of Shares —","page_number":117,"box":{"x":68,"y":673,"width":828,"height":11}},{"id":"73ac6787-f3ed-4835-ae48-26e63b72312c","block_type":"box","text":"Distribution and/or Shareholder Servicing Plans.”","page_number":117,"box":{"x":70,"y":688,"width":350,"height":11}},{"id":"0532fda6-2a94-48ef-bc92-2885e607661f","block_type":"box","text":"Sub-Advisory Fee.","page_number":117,"box":{"x":102,"y":711,"width":124,"height":11}},{"id":"e697041f-459d-488a-999e-dab0fb6d4e64","block_type":"box","text":"The Manager of cer tain Funds has entered into one or more sub-advisory agreements (the","page_number":117,"box":{"x":232,"y":710,"width":643,"height":12}},{"id":"9b57fc1d-293d-47b9-8d49-f1c5476e3d47","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":117,"box":{"x":70,"y":726,"width":839,"height":11}},{"id":"95580869-a0e4-4c15-96a2-b5997566bfad","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":117,"box":{"x":68,"y":741,"width":830,"height":11}},{"id":"a6420404-d1f9-4a7d-bfe1-3a7926795044","block_type":"box","text":"Organization of the Manager.","page_number":117,"box":{"x":102,"y":763,"width":204,"height":12}},{"id":"0f2dc461-30f6-4e8a-a81f-c5d838718965","block_type":"box","text":"BlackRock Advisors, LLC is a Delaware limited liability company and BlackRock","page_number":117,"box":{"x":313,"y":763,"width":560,"height":12}},{"id":"095d0065-88cf-465a-9e06-6149396f13b8","block_type":"box","text":"Fund Advisors is a California corporation. Each Manager is an indirect, majority-owned subsidiary of BlackRock, Inc.","page_number":117,"box":{"x":70,"y":778,"width":819,"height":12}},{"id":"7e70d534-00a1-41f3-9fa4-a8f49a8e78cf","block_type":"box","text":"BlackRock, Inc., through its subsidiaries and divisions, provides (i) investment management services to individuals","page_number":117,"box":{"x":70,"y":794,"width":817,"height":11}},{"id":"db9f056c-cf9c-4268-8623-e9adf2288a53","block_type":"box","text":"and institutional investors through separate account management, non-discretionary advisory programs and","page_number":117,"box":{"x":69,"y":809,"width":768,"height":11}},{"id":"9b756c20-95e9-457b-8f1b-367c3c595078","block_type":"box","text":"commingled investment vehicles; (ii) risk management services, investment accounting and trade processing tools;","page_number":117,"box":{"x":69,"y":824,"width":821,"height":11}},{"id":"aae608ea-fccb-44ad-8b31-94f2c675dc3a","block_type":"box","text":"(iii) transition management services, and (iv) securities lending services.","page_number":117,"box":{"x":69,"y":839,"width":517,"height":11}},{"id":"1c049318-7ab2-4b6c-be10-ac14ecc84330","block_type":"box","text":"Duration and Termination.","page_number":117,"box":{"x":102,"y":862,"width":182,"height":9}},{"id":"2b7339dd-b3d4-433a-b468-2301ad701a27","block_type":"box","text":"Unless earlier terminated as described below, each Management Agreement and each","page_number":117,"box":{"x":292,"y":862,"width":613,"height":11}},{"id":"137e852a-dc00-4722-af52-d8c06f6d0bf5","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":117,"box":{"x":69,"y":877,"width":835,"height":11}},{"id":"54ffdf40-cf13-402a-9cba-2a28a2223f3f","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":117,"box":{"x":69,"y":892,"width":803,"height":11}},{"id":"38df9c87-cb43-4859-8b07-6468fd269a3e","block_type":"box","text":"(b) by a majority of the Directors of the Fund who are not par ties to such agreement or interested persons (as defined","page_number":117,"box":{"x":69,"y":907,"width":839,"height":11}},{"id":"32fcce83-861d-4125-9494-27848cc644fd","block_type":"box","text":"II-82","page_number":117,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7ecbf43c-72a1-43c6-bc3d-a2f93b4c348f","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":117,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"eb1b159f-8abe-4dd8-8609-36b21255900d","block_type":"box","text":"in the Investment Company Act) of any such par ty. Each Management Agreement automatically terminates on","page_number":118,"box":{"x":70,"y":45,"width":778,"height":11}},{"id":"1fcd75ca-af9a-438a-8b96-1daa7219ea9c","block_type":"box","text":"assignment and may be terminated without penalty on 60 days’ written notice at the option of either par ty thereto or","page_number":118,"box":{"x":69,"y":60,"width":832,"height":11}},{"id":"f7079cc3-fce5-4857-9a12-d65c62212682","block_type":"box","text":"by the vote of the shareholders of the applicable Fund.","page_number":118,"box":{"x":69,"y":75,"width":388,"height":11}},{"id":"173d8867-2ca9-43f7-a866-0f265cfa9adf","block_type":"box","text":"Other Service Arrangements","page_number":118,"box":{"x":69,"y":105,"width":205,"height":11}},{"id":"b0e49cea-7f26-4b61-92b7-db790634af95","block_type":"box","text":"Administrative Services and Administrative Fee.","page_number":118,"box":{"x":101,"y":128,"width":338,"height":9}},{"id":"58d2f1ee-c489-4295-b779-076ddceb4e61","block_type":"box","text":"Cer tain Funds have entered into an administration agreement","page_number":118,"box":{"x":446,"y":128,"width":439,"height":11}},{"id":"5acfe941-cfb7-4629-9394-0923a2addc0b","block_type":"box","text":"(the “Administration Agreement”) with an administrator identified in the Fund’s Prospectus and Par t I of the Fund’s","page_number":118,"box":{"x":69,"y":143,"width":818,"height":11}},{"id":"85de16f1-3bbd-4b65-9ae4-1e3f00949e5d","block_type":"box","text":"SAI (each an “Administrator”). 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For information regarding any administrative fees paid by","page_number":118,"box":{"x":69,"y":173,"width":833,"height":11}},{"id":"30d2f26f-83d9-4e59-9885-def3b0f53759","block_type":"box","text":"your Fund to the Administrator for the periods indicated, see “Management, Advisory and Other Service","page_number":118,"box":{"x":68,"y":188,"width":738,"height":12}},{"id":"93086a5d-5d3d-419a-a218-8bd5fa709c1b","block_type":"box","text":"Arrangements — Administration Agreement” or “Management and Advisory Arrangements,” as applicable, in Par t I of","page_number":118,"box":{"x":68,"y":203,"width":839,"height":12}},{"id":"2921ccc1-5a62-411b-ba6b-55b367198afe","block_type":"box","text":"that Fund’s SAI.","page_number":118,"box":{"x":68,"y":219,"width":113,"height":8}},{"id":"8e0ecb9b-2e77-4480-a05a-7dfcea1131c1","block_type":"box","text":"For Funds that have an Administrator, the Administration Agreement obligates the Administrator to provide","page_number":118,"box":{"x":102,"y":241,"width":755,"height":11}},{"id":"c32d1b11-311d-459d-adbd-9e606bdab057","block_type":"box","text":"cer tain administrative services to the Fund and to pay, or cause its affiliates to pay, for maintaining its staff and","page_number":118,"box":{"x":69,"y":256,"width":800,"height":12}},{"id":"e3f35a6d-3c53-4051-9f01-62db6739e7a0","block_type":"box","text":"personnel and to provide office space, facilities and necessary personnel for the Fund. Each Administrator is also","page_number":118,"box":{"x":70,"y":271,"width":809,"height":12}},{"id":"a780bb10-a2ed-43e8-9109-f29ac446318a","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":118,"box":{"x":69,"y":286,"width":826,"height":12}},{"id":"d7e8aa52-7e68-41f3-8edd-5ed032f22167","block_type":"box","text":"persons of the Administrator or any of its affiliates.","page_number":118,"box":{"x":70,"y":302,"width":362,"height":11}},{"id":"ad0b4d78-cb8c-4abc-a0d5-9dcf6426aa26","block_type":"box","text":"Duration and Termination of Administration Agreement.","page_number":118,"box":{"x":102,"y":324,"width":390,"height":12}},{"id":"7856b74c-164f-4b22-beb3-e1c07e558d70","block_type":"box","text":"Unless earlier terminated as described below, each","page_number":118,"box":{"x":499,"y":325,"width":364,"height":10}},{"id":"b538477b-e67f-4fa0-b3f6-7d52475adfa0","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":118,"box":{"x":68,"y":339,"width":832,"height":12}},{"id":"a91b07a8-24ad-4498-9e9e-1ab3c8414ce9","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":118,"box":{"x":69,"y":355,"width":802,"height":11}},{"id":"edc3321c-e552-42d3-b0a9-df29dbc82012","block_type":"box","text":"securities of such Fund and (b) by a majority of the Directors of the Fund who are not par ties to such contract or","page_number":118,"box":{"x":69,"y":370,"width":800,"height":11}},{"id":"fe38a10e-2816-47b6-8c2c-9ca6fb69ee9b","block_type":"box","text":"interested persons (as defined in the Investment Company Act) of any such par ty. Such contract is not assignable","page_number":118,"box":{"x":70,"y":385,"width":810,"height":11}},{"id":"e97e20ce-8205-4a3a-8b06-2504bb7404a6","block_type":"box","text":"and may be terminated without penalty on written notice at the option of either par ty thereto or by the vote of the","page_number":118,"box":{"x":69,"y":400,"width":805,"height":11}},{"id":"bd7f6b3c-d5ab-4184-94f2-0e57ace0e442","block_type":"box","text":"shareholders of the Fund.","page_number":118,"box":{"x":69,"y":415,"width":181,"height":9}},{"id":"be57572f-ec31-43d9-9a1b-1e82a4f49395","block_type":"box","text":"Transfer Agency Services.","page_number":118,"box":{"x":103,"y":438,"width":180,"height":11}},{"id":"d6186a21-d933-46c4-9797-d72ea0b34c45","block_type":"box","text":"BNY Mellon Investment Servicing (US) Inc. (in this capacity, the “Transfer Agent”), a","page_number":118,"box":{"x":291,"y":438,"width":595,"height":11}},{"id":"ba4448e9-e657-4cc3-b0a1-db5f1ead227c","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":118,"box":{"x":69,"y":453,"width":816,"height":11}},{"id":"0917a757-a539-4c03-b12c-4ad183942a59","block_type":"box","text":"Agency, Dividend Disbursing Agency and Shareholder Servicing Agency Agreement (the “Transfer Agency Agreement”)","page_number":118,"box":{"x":68,"y":468,"width":833,"height":11}},{"id":"9e0590c2-7ca9-4ed0-aa15-de090f81470e","block_type":"box","text":"with the Funds. Pursuant to the Transfer Agency Agreement, the Transfer Agent is responsible for the issuance,","page_number":118,"box":{"x":68,"y":483,"width":792,"height":11}},{"id":"a5c398df-8c42-4efe-b1d7-62f520b18e80","block_type":"box","text":"transfer and redemption of shares and the opening and maintenance of shareholder accounts. Each Fund pays the","page_number":118,"box":{"x":68,"y":498,"width":819,"height":11}},{"id":"f9ba83a7-37b9-4d53-a345-b02884e6c42f","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":118,"box":{"x":68,"y":513,"width":839,"height":12}},{"id":"016a63ad-e516-4e52-a056-ac55895657fb","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":118,"box":{"x":70,"y":528,"width":831,"height":12}},{"id":"a7514d0b-ee38-446c-b3af-9671d1711122","block_type":"box","text":"for cer tain accounts that par ticipate in cer tain fee-based programs sponsored by the Manager or its affiliates. For","page_number":118,"box":{"x":68,"y":543,"width":813,"height":12}},{"id":"96494e34-da6f-4298-bb78-e6b1b23f2486","block_type":"box","text":"purposes of each Transfer Agency Agreement, the term “account” includes a shareholder account maintained directly","page_number":118,"box":{"x":70,"y":559,"width":836,"height":11}},{"id":"6cbb1ef8-8bfe-4faa-b16d-5fc8c56e259e","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":118,"box":{"x":69,"y":574,"width":806,"height":11}},{"id":"18e00691-faf9-4c1d-833e-9dbfc8ea7f4b","block_type":"box","text":"class on a recordkeeping system.","page_number":118,"box":{"x":69,"y":589,"width":238,"height":11}},{"id":"4b966512-853c-4956-adc1-0f9b3cf07c13","block_type":"box","text":"Independent Registered Public Accounting Firm.","page_number":118,"box":{"x":102,"y":612,"width":338,"height":11}},{"id":"99afd4a8-fc17-4597-b286-050c958e0ba5","block_type":"box","text":"The Audit Committee of each Fund, the members of which are","page_number":118,"box":{"x":446,"y":612,"width":441,"height":10}},{"id":"7a1441e0-714a-4f61-9024-e1b72fc7278e","block_type":"box","text":"non-interested Directors of the Fund, has selected an independent registered public accounting firm for that Fund that","page_number":118,"box":{"x":69,"y":627,"width":840,"height":11}},{"id":"d51d2900-ff4d-4574-8423-6c3e5bc575e0","block_type":"box","text":"audits the Fund’s financial statements. Please see the inside back cover page of your Fund’s Prospectus and Par t I","page_number":118,"box":{"x":69,"y":642,"width":823,"height":11}},{"id":"8f7bba27-25fb-4ac9-ab74-0efbc6d6e9e9","block_type":"box","text":"of this SAI for information on your Fund’s independent registered public accounting firm.","page_number":118,"box":{"x":69,"y":657,"width":627,"height":11}},{"id":"c2b8b639-8eaa-4366-b55c-c7f5859227cf","block_type":"box","text":"Custodian Services.","page_number":118,"box":{"x":102,"y":680,"width":141,"height":9}},{"id":"5b6b38de-a3c5-4f65-9315-bc947b2fe48e","block_type":"box","text":"The name and address of the custodian (the “Custodian”) of each Fund are provided on the","page_number":118,"box":{"x":249,"y":680,"width":654,"height":11}},{"id":"700053e0-c73e-48a6-ba14-f8b2baea7b14","block_type":"box","text":"inside back cover page of the Fund’s Prospectus. The Custodian is responsible for safeguarding and controlling the","page_number":118,"box":{"x":70,"y":695,"width":820,"height":11}},{"id":"c32ae52d-a684-4d34-8037-f1d666a62ca4","block_type":"box","text":"Fund’s cash and securities, handling the receipt and delivery of securities and collecting interest and dividends on","page_number":118,"box":{"x":70,"y":710,"width":814,"height":11}},{"id":"eb93cd36-11c4-4c1d-9a1f-a902efbc91d7","block_type":"box","text":"the Fund’s investments. The Custodian is authorized to establish separate accounts in foreign currencies and to","page_number":118,"box":{"x":68,"y":725,"width":802,"height":11}},{"id":"835cc452-f359-4394-bf31-60259bab89c0","block_type":"box","text":"cause foreign securities owned by the Fund to be held in its offices outside the United States and with cer tain foreign","page_number":118,"box":{"x":69,"y":740,"width":839,"height":11}},{"id":"3ab3e3c2-f80f-4560-8553-47fdebc49eb7","block_type":"box","text":"banks and securities depositories. A Fund also may use special purpose custodian banks from time to time for","page_number":118,"box":{"x":69,"y":755,"width":792,"height":11}},{"id":"23fd73ea-e1eb-4999-9e49-d436cebe5410","block_type":"box","text":"cer tain assets.","page_number":118,"box":{"x":69,"y":771,"width":106,"height":8}},{"id":"2f011af1-3a75-4527-858d-826a4387e19d","block_type":"box","text":"For cer tain Feeder Funds, the Custodian also acts as the custodian of the Master Por tfolio’s assets.","page_number":118,"box":{"x":102,"y":793,"width":716,"height":10}},{"id":"86e9acae-8900-43b5-ab16-114dd81fdc37","block_type":"box","text":"Generally, overdraft charges, if any, are treated as interest expense. With respect to cer tain Funds, on a monthly","page_number":118,"box":{"x":102,"y":816,"width":803,"height":11}},{"id":"ddf0bb71-48d2-4acb-b0b5-548edbfe2d7f","block_type":"box","text":"basis the Custodian nets the Fund’s daily positive and negative cash balances and calculates a credit (“custody","page_number":118,"box":{"x":69,"y":831,"width":799,"height":11}},{"id":"95094790-0a89-45e5-9cda-dea4b7eb2aa1","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":118,"box":{"x":69,"y":846,"width":834,"height":11}},{"id":"b60b4a5a-5e22-41d7-bed0-ee58d61d6eb3","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":118,"box":{"x":69,"y":861,"width":826,"height":11}},{"id":"b818adbe-3fa1-4344-aa3c-f1e94507731e","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":118,"box":{"x":69,"y":876,"width":807,"height":11}},{"id":"3dc123db-b65f-48fc-ad9a-4f4c702ab643","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":118,"box":{"x":68,"y":891,"width":836,"height":12}},{"id":"f4efcd1b-aec1-4652-bfc4-5d97b8ef13d1","block_type":"box","text":"Fund.","page_number":118,"box":{"x":70,"y":907,"width":36,"height":8}},{"id":"e238b560-3914-40d0-a480-5235e9cf7b57","block_type":"box","text":"II-83","page_number":118,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"8703e283-586f-40e6-b2cb-d3874932d154","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":118,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7d1d1538-12ae-4029-9c75-be8e9f511852","block_type":"box","text":"Accounting Services.","page_number":119,"box":{"x":101,"y":45,"width":148,"height":11}},{"id":"728cdfa5-ba28-41ac-a1df-749f7169fdca","block_type":"box","text":"Each Fund has entered into an agreement with State Street, BNY Mellon or JPM, pursuant","page_number":119,"box":{"x":256,"y":45,"width":641,"height":11}},{"id":"ba574713-ef0e-4302-9de7-ca1322f7c86a","block_type":"box","text":"to which State Street, BNY Mellon or JPM provides cer tain accounting and administrative services to the Fund. Each","page_number":119,"box":{"x":68,"y":60,"width":829,"height":11}},{"id":"e15083cd-e89a-4cc2-a2c4-050dc186d990","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":119,"box":{"x":70,"y":75,"width":797,"height":11}},{"id":"0e719340-df55-4bf4-84e3-5ab7d4c249f3","block_type":"box","text":"Master LLCs.","page_number":119,"box":{"x":70,"y":90,"width":91,"height":9}},{"id":"f2e99d66-9881-4c73-aadf-30865be1937d","block_type":"box","text":"See “Management, Advisory and Other Service Arrangements — Accounting Services” or “Management and","page_number":119,"box":{"x":102,"y":113,"width":771,"height":11}},{"id":"019d1d5b-79c5-431a-afea-8daf74d6009a","block_type":"box","text":"Advisory Arrangements — Accounting Services,” as applicable, in Par t I of each Fund’s SAI for information on the","page_number":119,"box":{"x":68,"y":128,"width":810,"height":11}},{"id":"94d572c1-c70a-4dc3-a151-856613e119b0","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":119,"box":{"x":69,"y":143,"width":828,"height":11}},{"id":"cae799f1-984f-4529-abc4-fad5c9b8215a","block_type":"box","text":"applicable, the Administrator for the periods indicated.","page_number":119,"box":{"x":69,"y":158,"width":386,"height":11}},{"id":"a836f3ec-7bbf-432a-9d41-9598596a7f26","block_type":"box","text":"Distribution Expenses.","page_number":119,"box":{"x":102,"y":181,"width":158,"height":11}},{"id":"e2e323b2-9c15-4762-835c-dba6b8c9f20e","block_type":"box","text":"Each Fund has entered into a distribution agreement with the Distributor in connection","page_number":119,"box":{"x":267,"y":181,"width":614,"height":11}},{"id":"a458bdd6-0955-4fdd-b691-d4088ffc9801","block_type":"box","text":"with the continuous offering of each class of shares of the Fund (the “Distribution Agreements”). 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shareholders, prospective shareholders, consultants,","page_number":123,"box":{"x":69,"y":299,"width":818,"height":11}},{"id":"5c1c4abe-f097-491b-981c-d87ca4eb7060","block_type":"box","text":"and third-par ty data providers upon request, as soon as such data is available.","page_number":123,"box":{"x":69,"y":314,"width":562,"height":11}},{"id":"722e6e69-9dbc-4b24-b77c-3c9653761789","block_type":"box","text":"Contact Information.","page_number":123,"box":{"x":102,"y":337,"width":144,"height":9}},{"id":"54c3804b-c7a2-471a-9086-aa8bc4de5fa4","block_type":"box","text":"For information about por tfolio holdings and characteristics, BlackRock fund shareholders","page_number":123,"box":{"x":253,"y":337,"width":639,"height":11}},{"id":"2cffca4c-3aaf-4103-9266-cb95fb63f6e7","block_type":"box","text":"and prospective investors should call the number set out on the back cover of the Prospectus.","page_number":123,"box":{"x":69,"y":352,"width":672,"height":11}},{"id":"1f05511a-442e-4eea-aed8-ab65179ada61","block_type":"box","text":"Compensation.","page_number":123,"box":{"x":102,"y":375,"width":105,"height":11}},{"id":"554e252f-f49a-4a79-b5b1-5cdb2056ac9d","block_type":"box","text":"Neither a Fund, a service provider nor any of their affiliated persons (as that term is defined in","page_number":123,"box":{"x":215,"y":375,"width":672,"height":11}},{"id":"20d8b8dc-6095-4b99-a87a-4366f2f03202","block_type":"box","text":"the Investment Company Act) shall receive compensation in any form in connection with the disclosure of information","page_number":123,"box":{"x":68,"y":390,"width":837,"height":11}},{"id":"37e7c73c-c194-4f51-a6cf-249058c134fd","block_type":"box","text":"about such Fund’s Por tfolio Holdings or Por tfolio 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Such transactions, par ticularly in","page_number":124,"box":{"x":70,"y":649,"width":785,"height":12}},{"id":"b3811246-fdf4-4873-9742-df27c675d54e","block_type":"box","text":"respect of most proprietary accounts or client accounts, will be executed independently of a Fund’s transactions and","page_number":124,"box":{"x":69,"y":664,"width":832,"height":12}},{"id":"4f4e3093-9984-4793-88c8-7bb6f3f90b31","block_type":"box","text":"thus at prices or rates that may be more or less favorable than those obtained by the Fund.","page_number":124,"box":{"x":68,"y":680,"width":652,"height":11}},{"id":"3e8e2cff-bbe5-4200-aa98-714ca38fa21c","block_type":"box","text":"In addition, the por tfolio holdings of cer tain BlackRock-advised investment vehicles managed in an identical or","page_number":124,"box":{"x":102,"y":702,"width":787,"height":12}},{"id":"ba9edccc-61ca-43fa-b43d-dc85d9ec591b","block_type":"box","text":"substantially similar manner as cer tain Funds are made publicly available on a more timely basis than the applicable","page_number":124,"box":{"x":69,"y":718,"width":832,"height":11}},{"id":"a52885b1-400f-4c06-9ec4-4ae8418bc4b5","block_type":"box","text":"Fund. In some cases, such por tfolio holdings are made publicly available on a daily basis. 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In some cases, this system may adversely affect the size or price of the assets purchased or sold for a","page_number":124,"box":{"x":69,"y":831,"width":835,"height":11}},{"id":"3e87fe94-8bcd-4b33-9e32-290ac9b8a155","block_type":"box","text":"Fund. In addition, transactions in investments by one or more other accounts managed by BlackRock may have the","page_number":124,"box":{"x":70,"y":846,"width":817,"height":11}},{"id":"1805be53-99a8-4cfa-a980-0ec246a4e50b","block_type":"box","text":"effect of diluting or otherwise disadvantaging the values, prices or investment strategies of a Fund, par ticularly, but","page_number":124,"box":{"x":69,"y":861,"width":823,"height":11}},{"id":"1235605d-fc10-46db-af7f-18d9617bcde6","block_type":"box","text":"not limited to, with respect to small capitalization, emerging market or less liquid strategies. This may occur with","page_number":124,"box":{"x":69,"y":876,"width":803,"height":11}},{"id":"58b1d677-002a-49cd-9405-0fb0c5c8e1c0","block_type":"box","text":"respect to BlackRock-advised accounts when investment decisions regarding a Fund are based on research or other","page_number":124,"box":{"x":69,"y":891,"width":827,"height":12}},{"id":"6dfcf213-6425-47c2-b00c-1b993bdb7124","block_type":"box","text":"information that is also used to suppor t decisions for other accounts. When BlackRock implements a por tfolio","page_number":124,"box":{"x":70,"y":906,"width":785,"height":11}},{"id":"ada833be-725d-4ff6-9954-e6bcb6d55ff7","block_type":"box","text":"II-89","page_number":124,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"acedcfb5-e34b-4929-bfdb-41f781022545","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":124,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5a699956-72ad-4586-aff7-569b965c7701","block_type":"box","text":"decision or strategy on behalf of another account ahead of, or contemporaneously with, similar decisions or","page_number":125,"box":{"x":69,"y":45,"width":767,"height":11}},{"id":"118bf6f7-3b5f-4b77-8f13-a21b58c3fe9a","block_type":"box","text":"strategies for a Fund, market impact, liquidity constraints, or other factors could result in the Fund receiving less","page_number":125,"box":{"x":69,"y":60,"width":802,"height":11}},{"id":"c49e9222-e8e3-4a3c-a405-39771c9e2136","block_type":"box","text":"favorable trading results and the costs of implementing such decisions or strategies could be increased or the Fund","page_number":125,"box":{"x":68,"y":75,"width":827,"height":11}},{"id":"0cecbbe9-10fc-4363-b42a-46d3cee86930","block_type":"box","text":"could otherwise be disadvantaged. BlackRock may, in cer tain cases, elect to implement internal policies and","page_number":125,"box":{"x":69,"y":90,"width":776,"height":11}},{"id":"181ed185-993c-4675-81bd-f0f606a3dc9a","block_type":"box","text":"procedures designed to limit such consequences, which may cause a Fund to be unable to engage in cer tain","page_number":125,"box":{"x":70,"y":105,"width":774,"height":11}},{"id":"bad7b5d4-7e06-4579-a7a2-85f13da3830f","block_type":"box","text":"activities, including purchasing or disposing of securities, when it might otherwise be desirable for it to do so.","page_number":125,"box":{"x":69,"y":120,"width":781,"height":12}},{"id":"76720f14-179f-48fb-ab30-a121ac86b266","block_type":"box","text":"Conflicts may also arise because por tfolio decisions regarding a Fund may benefit other accounts managed by","page_number":125,"box":{"x":69,"y":135,"width":787,"height":12}},{"id":"d89f3cb9-8579-4db7-b7b0-a570ea7da4e5","block_type":"box","text":"BlackRock. For example, the sale of a long position or establishment of a shor t position by a Fund may impair the","page_number":125,"box":{"x":70,"y":150,"width":809,"height":12}},{"id":"87122667-36e0-4834-b847-60e4ca94591d","block_type":"box","text":"price of the same security sold shor t by (and therefore benefit) BlackRock or its other accounts or funds, and the","page_number":125,"box":{"x":70,"y":166,"width":805,"height":11}},{"id":"9c3150ff-aef9-4dc3-b44a-6cd36183c431","block_type":"box","text":"purchase of a security or covering of a shor t position in a security by a Fund may increase the price of the same","page_number":125,"box":{"x":70,"y":181,"width":797,"height":11}},{"id":"fa22861f-4274-47f4-9798-88ba1c9e5cdc","block_type":"box","text":"security held by (and therefore benefit) BlackRock or its other accounts or funds.","page_number":125,"box":{"x":69,"y":196,"width":573,"height":11}},{"id":"ac8237f5-e8d3-4be3-9834-8f0b9400c912","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":125,"box":{"x":102,"y":218,"width":797,"height":12}},{"id":"535668f7-8c4f-47b6-be3f-9add2a9d19b5","block_type":"box","text":"extend credit to different par ts of the capital structure of a single issuer. BlackRock may pursue rights, provide","page_number":125,"box":{"x":69,"y":234,"width":791,"height":11}},{"id":"4760be03-7b30-44df-b4c1-d5f039213269","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":125,"box":{"x":69,"y":249,"width":835,"height":11}},{"id":"2ff30b48-4b7b-43f4-bded-58d465a1f7ab","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":125,"box":{"x":69,"y":264,"width":812,"height":11}},{"id":"07fde401-b65a-4f59-95db-265dd81a0c81","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":125,"box":{"x":69,"y":279,"width":803,"height":11}},{"id":"2d1edd5f-22a4-44dc-ada7-6a711a6a462f","block_type":"box","text":"Funds) hold positions in multiple par ts of the capital structure of an issuer, BlackRock may not pursue cer tain","page_number":125,"box":{"x":70,"y":294,"width":783,"height":11}},{"id":"63424fd1-1749-4c4b-ad7b-4fc2b33a2e03","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":125,"box":{"x":69,"y":309,"width":818,"height":11}},{"id":"1f3cc468-c285-4773-b849-e2f2e19b7fbf","block_type":"box","text":"BlackRock addresses these and other potential conflicts of interest based on the facts and circumstances of","page_number":125,"box":{"x":70,"y":324,"width":777,"height":11}},{"id":"7aded124-66f7-4390-9e59-c5084ee033e0","block_type":"box","text":"par ticular situations. For example, BlackRock may determine to rely on information barriers between different","page_number":125,"box":{"x":70,"y":339,"width":780,"height":12}},{"id":"ed3afa61-674d-4720-94e0-52ab7e628969","block_type":"box","text":"business units or por tfolio management teams. BlackRock may also determine to rely on the actions of similarly","page_number":125,"box":{"x":69,"y":355,"width":802,"height":11}},{"id":"d0fdc323-143a-4124-b088-4c1833194778","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":125,"box":{"x":69,"y":370,"width":817,"height":11}},{"id":"8951aa98-b721-4aef-be27-9a06289c525a","block_type":"box","text":"Funds.","page_number":125,"box":{"x":70,"y":385,"width":44,"height":9}},{"id":"a30d8f82-58dc-4a70-b2e4-c1a979956a06","block_type":"box","text":"In addition, to the extent permitted by applicable law, cer tain Funds may invest their assets in other funds","page_number":125,"box":{"x":102,"y":407,"width":755,"height":12}},{"id":"07f0fad9-c6ca-42d7-ac9c-0213300373bb","block_type":"box","text":"advised by BlackRock, including funds that are managed by one or more of the same por tfolio managers, which could","page_number":125,"box":{"x":69,"y":423,"width":836,"height":11}},{"id":"3bb66881-ee3c-4cba-830d-5a7ff11c4cce","block_type":"box","text":"result in conflicts of interest relating to asset allocation, timing of Fund purchases and redemptions, and increased","page_number":125,"box":{"x":69,"y":438,"width":821,"height":11}},{"id":"758fa051-0df3-4a00-87a4-99ba91180bf2","block_type":"box","text":"remuneration and profitability for BlackRock and/or its personnel, including por tfolio managers.","page_number":125,"box":{"x":69,"y":453,"width":679,"height":11}},{"id":"9299beaa-fa29-4259-965c-d455f4f9e7a5","block_type":"box","text":"Third par ties, including service providers to BlackRock or the Fund, may sponsor events (including, but not","page_number":125,"box":{"x":101,"y":476,"width":760,"height":11}},{"id":"28b4a5f6-f5b3-4fed-801e-1883cc6a1e72","block_type":"box","text":"limited to, marketing and promotional activities and presentations, educational training programs and conferences)","page_number":125,"box":{"x":70,"y":491,"width":818,"height":11}},{"id":"2d72c852-a1ce-4894-bd5a-36a7212260a7","block_type":"box","text":"for registered representatives, other professionals and individual investors. There is a potential conflict of interest as","page_number":125,"box":{"x":68,"y":506,"width":836,"height":11}},{"id":"3790a3c0-082e-47e7-b02d-7814c4a7e600","block_type":"box","text":"such sponsorships may defray the costs of such activities to BlackRock, and may provide an incentive to BlackRock","page_number":125,"box":{"x":69,"y":521,"width":825,"height":11}},{"id":"8990ef1d-9955-4850-babc-1822c6877479","block_type":"box","text":"to retain such third par ties to provide services to the Fund.","page_number":125,"box":{"x":68,"y":536,"width":421,"height":11}},{"id":"70cb2c2f-2615-4ac2-a382-ed2ab8618e84","block_type":"box","text":"In cer tain circumstances, BlackRock, on behalf of the Funds, may seek to buy from or sell securities to another","page_number":125,"box":{"x":102,"y":559,"width":794,"height":11}},{"id":"c29ce32c-c9c9-404b-bf97-2224ac2c040f","block_type":"box","text":"fund or account advised by BlackRock. BlackRock may (but is not required to) effect purchases and sales between","page_number":125,"box":{"x":68,"y":574,"width":817,"height":11}},{"id":"844d3efd-7c30-4393-ba85-0860558f58e5","block_type":"box","text":"BlackRock clients (“cross trades”), including the Funds, if BlackRock believes such transactions are appropriate","page_number":125,"box":{"x":70,"y":589,"width":797,"height":11}},{"id":"bbac0517-8f83-4824-a054-05a9634689f6","block_type":"box","text":"based on each par ty’s investment objectives and guidelines, subject to applicable law and regulation. There may be","page_number":125,"box":{"x":69,"y":604,"width":826,"height":11}},{"id":"1142f49c-35cf-4313-b6a9-f7adc354e748","block_type":"box","text":"potential conflicts of interest or regulatory issues relating to these transactions which could limit BlackRock’s","page_number":125,"box":{"x":70,"y":619,"width":780,"height":11}},{"id":"ae1c9eb1-1cdf-4465-88c6-cd3d727c8587","block_type":"box","text":"decision to engage in these transactions for the Funds. BlackRock may have a potentially conflicting division of","page_number":125,"box":{"x":69,"y":634,"width":791,"height":12}},{"id":"fafc41d0-248d-432e-912f-711d6642f02c","block_type":"box","text":"loyalties and responsibilities to the par ties in such transactions.","page_number":125,"box":{"x":70,"y":650,"width":457,"height":11}},{"id":"41761da9-bbea-4928-866c-af00db09d969","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":125,"box":{"x":102,"y":672,"width":784,"height":11}},{"id":"bd2c47fe-df5e-46c8-9c1c-53000c67eee4","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":125,"box":{"x":69,"y":687,"width":840,"height":11}},{"id":"56eb88ef-329c-43b4-ad03-f0a50d41a6d8","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":125,"box":{"x":70,"y":702,"width":827,"height":12}},{"id":"199e7cb7-4200-4d1a-924d-ef11c55eab42","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":125,"box":{"x":70,"y":717,"width":828,"height":12}},{"id":"a5f15963-7b0b-44a8-b5f0-0ab9ea6cb1c6","block_type":"box","text":"case.","page_number":125,"box":{"x":69,"y":735,"width":37,"height":7}},{"id":"4e58b012-be85-4184-9d3a-277b43a3eb7b","block_type":"box","text":"The results of a Fund’s investment activities may differ significantly from the results achieved by BlackRock for","page_number":125,"box":{"x":101,"y":755,"width":791,"height":11}},{"id":"fbf48eb6-691a-4e6b-b323-de509ac8e1d8","block_type":"box","text":"its proprietary accounts or other accounts (including investment companies or collective investment vehicles) that it","page_number":125,"box":{"x":70,"y":771,"width":824,"height":11}},{"id":"51edf586-fe6f-4f52-b4cd-ab5909a8a751","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":125,"box":{"x":69,"y":786,"width":798,"height":11}},{"id":"27f77c22-0c86-4487-b74d-35c03e1ca66a","block_type":"box","text":"accounts will achieve investment results that are substantially more or less favorable than the results achieved by a","page_number":125,"box":{"x":69,"y":801,"width":828,"height":11}},{"id":"9fec29e4-3329-4920-9b19-41e4240c434b","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":125,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"79572397-0990-43ad-8bb6-3b673d83382b","block_type":"box","text":"accounts managed or advised by BlackRock achieve significant profits. The opposite result is also possible.","page_number":125,"box":{"x":69,"y":831,"width":767,"height":11}},{"id":"1ecee6bf-131b-4280-b2d6-aebe10809735","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":125,"box":{"x":102,"y":853,"width":766,"height":12}},{"id":"8ed8d23c-e229-400d-a71c-0b837683c698","block_type":"box","text":"investment activities because of regulatory, legal or contractual requirements applicable to BlackRock or other","page_number":125,"box":{"x":70,"y":869,"width":786,"height":11}},{"id":"02f0397c-dc45-46d8-aba0-bd343509de2c","block_type":"box","text":"accounts managed or advised by BlackRock, and/or the internal policies of BlackRock designed to comply with such","page_number":125,"box":{"x":69,"y":884,"width":828,"height":11}},{"id":"34e311eb-3c49-431c-8d25-89603b92be9f","block_type":"box","text":"requirements. As a result, there may be periods, for example, when BlackRock will not initiate or recommend cer tain","page_number":125,"box":{"x":69,"y":899,"width":831,"height":11}},{"id":"66b73b17-e001-41c3-9730-93dd790f1eac","block_type":"box","text":"II-90","page_number":125,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"73a77c80-f5c2-49a1-ac3e-696d42196996","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":125,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"84f8a37a-9250-4530-afcf-95b07f658e36","block_type":"box","text":"types of transactions in cer tain securities or instruments with respect to which BlackRock is per forming services or","page_number":126,"box":{"x":68,"y":45,"width":825,"height":11}},{"id":"ec7b4644-845a-4ed4-b5a6-d746059c56aa","block_type":"box","text":"when position limits have been reached. For example, the investment activities of BlackRock for its proprietary","page_number":126,"box":{"x":68,"y":60,"width":790,"height":11}},{"id":"44447070-4256-475a-85b5-b27bd64c2718","block_type":"box","text":"accounts and accounts under its management may limit the investment oppor tunities for a Fund in cer tain emerging","page_number":126,"box":{"x":69,"y":75,"width":830,"height":11}},{"id":"beba23cc-f58d-4139-b48e-0779e734dd70","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":126,"box":{"x":69,"y":90,"width":827,"height":11}},{"id":"1734ab7f-95b4-43e6-8893-790d8fcbd48b","block_type":"box","text":"issuers, by affiliated foreign investors.","page_number":126,"box":{"x":70,"y":105,"width":271,"height":11}},{"id":"80278815-fe47-4e08-89d4-6ffc0e489845","block_type":"box","text":"In connection with its management of a Fund, BlackRock may have access to cer tain fundamental analysis and","page_number":126,"box":{"x":102,"y":128,"width":792,"height":11}},{"id":"63f8ff6d-bc4a-403a-a46b-97bc4c36d1cb","block_type":"box","text":"proprietary technical models developed by BlackRock. BlackRock will not be under any obligation, however, to effect","page_number":126,"box":{"x":70,"y":143,"width":826,"height":11}},{"id":"9907db7f-c669-4a2f-b62c-41d09fae3fed","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":126,"box":{"x":68,"y":158,"width":821,"height":11}},{"id":"041c1541-2c57-4dc4-ace4-95fc15a7ae02","block_type":"box","text":"any obligation to make available any information regarding its proprietary activities or strategies, or the activities or","page_number":126,"box":{"x":69,"y":173,"width":821,"height":11}},{"id":"59dee723-4131-4a21-9020-3d611a280433","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":126,"box":{"x":69,"y":188,"width":793,"height":12}},{"id":"f685502e-165d-40bd-8ba4-112d6660489e","block_type":"box","text":"anticipated that BlackRock will have access to such information for the purpose of managing the Fund. The","page_number":126,"box":{"x":69,"y":203,"width":762,"height":12}},{"id":"01f90b11-41cf-4557-8c45-537eab51e325","block_type":"box","text":"proprietary activities or por tfolio strategies of BlackRock, or the activities or strategies used for accounts managed by","page_number":126,"box":{"x":70,"y":218,"width":839,"height":12}},{"id":"aad4b196-b7af-4853-9e32-91a159242f49","block_type":"box","text":"BlackRock or other client accounts could conflict with the transactions and strategies employed by BlackRock in","page_number":126,"box":{"x":70,"y":234,"width":795,"height":11}},{"id":"b9c52fbd-10f7-43d4-8ff3-00ca6facd8fc","block_type":"box","text":"managing a Fund.","page_number":126,"box":{"x":69,"y":249,"width":124,"height":11}},{"id":"57798744-526d-46dc-88a8-efb1a593ce85","block_type":"box","text":"The Funds may be included in investment models developed by BlackRock for use by clients and financial","page_number":126,"box":{"x":101,"y":271,"width":751,"height":12}},{"id":"dcf7f2a8-4d90-4f61-b899-b2cd342e1c50","block_type":"box","text":"advisors. To the extent clients invest in these investment models and increase the assets under management of the","page_number":126,"box":{"x":69,"y":286,"width":830,"height":12}},{"id":"bd4e6bab-9978-403a-9d61-6c5146989b00","block_type":"box","text":"Funds, the investment management fee amounts paid by the Funds to BlackRock may also increase. The net asset","page_number":126,"box":{"x":70,"y":302,"width":820,"height":11}},{"id":"013a98cd-0306-4ead-87ed-b3226a65b672","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":126,"box":{"x":68,"y":317,"width":785,"height":11}},{"id":"94c383ab-a53d-4018-927a-6632aefb330c","block_type":"box","text":"por tfolios, as well as by BlackRock itself and by its advisory clients.","page_number":126,"box":{"x":70,"y":332,"width":481,"height":11}},{"id":"4f8a5cdb-101d-4f22-a94f-f9751de8c707","block_type":"box","text":"In addition, cer tain principals and cer tain employees of a Fund’s investment adviser are also principals or","page_number":126,"box":{"x":102,"y":355,"width":754,"height":11}},{"id":"498bcabf-b746-4393-98a3-7dbb3772c7a9","block_type":"box","text":"employees of other business units or entities within BlackRock. As a result, these principals and employees may","page_number":126,"box":{"x":69,"y":370,"width":804,"height":11}},{"id":"a9a2de9e-6ea5-42bb-9bc1-86e682b34229","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":126,"box":{"x":69,"y":385,"width":831,"height":11}},{"id":"24b375a5-a8f1-4ce4-aeb5-8a27dbce6ebc","block_type":"box","text":"or entities or their clients may be a consideration of which investors in a Fund should be aware.","page_number":126,"box":{"x":69,"y":400,"width":680,"height":11}},{"id":"033d4afb-c04b-433b-afe2-8bfd4b41ac04","block_type":"box","text":"BlackRock may enter into transactions and invest in securities, instruments and currencies on behalf of a Fund","page_number":126,"box":{"x":102,"y":423,"width":791,"height":11}},{"id":"ec53828a-f416-4536-8e19-d31658e24bd7","block_type":"box","text":"in which clients of BlackRock, or, to the extent permitted by the Commission and applicable law, BlackRock, serves","page_number":126,"box":{"x":70,"y":438,"width":820,"height":11}},{"id":"5581fede-a54f-4c7f-8f83-4323034df2ec","block_type":"box","text":"as the counterpar ty, principal or issuer. In such cases, such par ty’s interests in the transaction will be adverse to the","page_number":126,"box":{"x":69,"y":453,"width":837,"height":11}},{"id":"8ac3823b-fe7a-4e98-a4b7-1494b0756043","block_type":"box","text":"interests of the Fund, and such par ty may have no incentive to assure that the Fund obtains the best possible prices","page_number":126,"box":{"x":70,"y":468,"width":832,"height":11}},{"id":"83cf53a5-1f0d-40b8-8df4-1a6b42dbb0b2","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":126,"box":{"x":69,"y":483,"width":813,"height":11}},{"id":"c7f5876f-b49c-4df4-8a64-c8e9b37ac0b2","block_type":"box","text":"Fund may enhance the profitability of BlackRock.","page_number":126,"box":{"x":70,"y":498,"width":344,"height":11}},{"id":"9a282fcd-c25d-4c01-84d5-9d7cf93d3708","block_type":"box","text":"BlackRock may also create, write or issue derivatives for clients, the underlying securities, currencies or","page_number":126,"box":{"x":102,"y":521,"width":741,"height":11}},{"id":"dfaf261e-c7fd-4475-b38d-7b7138df537b","block_type":"box","text":"instruments of which may be those in which a Fund invests or which may be based on the per formance of the Fund.","page_number":126,"box":{"x":70,"y":536,"width":824,"height":11}},{"id":"bd66b475-a4a0-4fa7-866b-d01fcc2651e7","block_type":"box","text":"Additionally, an affiliate of BlackRock will create, write or issue options, which may be based on the per formance of","page_number":126,"box":{"x":68,"y":551,"width":825,"height":11}},{"id":"c3e62c00-d919-4769-8424-593ee1a91ae0","block_type":"box","text":"cer tain Funds. BlackRock has entered into an arrangement with Markit Indices Limited, the index provider for","page_number":126,"box":{"x":69,"y":566,"width":777,"height":11}},{"id":"60e385a7-4210-4aeb-841b-94a54f6b4a7f","block_type":"box","text":"underlying fixed-income indexes used by cer tain iShares ETFs, related to derivative fixed-income products that are","page_number":126,"box":{"x":69,"y":581,"width":810,"height":12}},{"id":"b7bf0014-35fc-4974-a400-67faafe61e8d","block_type":"box","text":"based on such iShares ETFs. Trading activity in these derivative products could also potentially lead to greater","page_number":126,"box":{"x":69,"y":597,"width":784,"height":11}},{"id":"2bae7f2c-518d-496a-97ac-44f92cef7ace","block_type":"box","text":"liquidity for such products, increased purchase activity with respect to these iShares ETFs and increased assets","page_number":126,"box":{"x":70,"y":612,"width":798,"height":11}},{"id":"d4ec8578-a99c-4fea-ba60-c50a5cdef630","block_type":"box","text":"under management for BlackRock.","page_number":126,"box":{"x":69,"y":627,"width":243,"height":11}},{"id":"bac14c60-f863-44f8-9adb-417e60d13813","block_type":"box","text":"A Fund may, subject to applicable law, purchase investments that are the subject of an underwriting or other","page_number":126,"box":{"x":101,"y":649,"width":773,"height":12}},{"id":"c6b52b1f-178e-46bd-832f-4e98a35d1920","block_type":"box","text":"distribution by BlackRock and may also enter into transactions with other clients of BlackRock where such other","page_number":126,"box":{"x":69,"y":664,"width":797,"height":12}},{"id":"fbd12608-7e66-4217-b853-d4bff03639b9","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":126,"box":{"x":69,"y":680,"width":817,"height":11}},{"id":"7f28c699-e10a-4886-9c11-0416046d010b","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":126,"box":{"x":68,"y":695,"width":837,"height":11}},{"id":"f274d5bc-efca-4e9f-bb7f-2604de4e0324","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":126,"box":{"x":70,"y":710,"width":781,"height":11}},{"id":"8e919b4e-c8c7-4cc8-8fe4-db21eef21647","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":126,"box":{"x":101,"y":733,"width":779,"height":11}},{"id":"a9eb01d6-0091-4b56-a2fe-7ca5dd4a3507","block_type":"box","text":"other commercial capacities for a Fund. It is anticipated that the commissions, mark-ups, mark-downs, financial","page_number":126,"box":{"x":69,"y":748,"width":795,"height":11}},{"id":"4d5a5730-9aea-465e-8034-a8d46c14b314","block_type":"box","text":"advisory fees, underwriting and placement fees, sales fees, financing and commitment fees, brokerage fees, other","page_number":126,"box":{"x":69,"y":763,"width":821,"height":11}},{"id":"693f2c50-79c0-42f2-954e-88e06febcdf2","block_type":"box","text":"fees, compensation or profits, rates, terms and conditions charged by BlackRock will be in its view commercially","page_number":126,"box":{"x":68,"y":778,"width":802,"height":11}},{"id":"f760f1af-c9d1-4cf3-87ed-61aa81bd905f","block_type":"box","text":"reasonable, although BlackRock, including its sales personnel, will have an interest in obtaining fees and other","page_number":126,"box":{"x":69,"y":793,"width":792,"height":11}},{"id":"0b00b6e9-c463-4199-82b9-1802499d77e1","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":126,"box":{"x":69,"y":808,"width":832,"height":11}},{"id":"baaebcd5-a6f0-4843-9732-d6b50e646824","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":126,"box":{"x":70,"y":823,"width":833,"height":11}},{"id":"815b860f-98a7-40d1-8786-314aecceb39d","block_type":"box","text":"that acts as a broker, dealer, agent, lender or in other commercial capacities for a Fund or BlackRock.","page_number":126,"box":{"x":68,"y":838,"width":726,"height":12}},{"id":"6f0b97ad-8a46-49d7-b2a3-390f0462fc0e","block_type":"box","text":"Subject to applicable law, BlackRock (and its personnel and other distributors) will be entitled to retain fees and","page_number":126,"box":{"x":102,"y":861,"width":796,"height":11}},{"id":"b8461517-587e-4bf1-a345-c3c7a72c38a3","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":126,"box":{"x":69,"y":876,"width":837,"height":11}},{"id":"8327b404-2cef-4985-a4e1-5e3e03b54244","block_type":"box","text":"or in other commercial capacities. 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BlackRock will not have any obligation to allow its credit to be used in connection with a Fund’s","page_number":127,"box":{"x":69,"y":136,"width":793,"height":11}},{"id":"f73dc945-ff21-423b-b430-afae630db4b8","block_type":"box","text":"establishment of its business relationships, nor is it expected that the Fund’s counterpar ties will rely on the credit of","page_number":127,"box":{"x":69,"y":150,"width":835,"height":12}},{"id":"06f75052-2238-48d8-9831-edfaf8d30a13","block_type":"box","text":"BlackRock in evaluating the Fund’s creditwor thiness.","page_number":127,"box":{"x":70,"y":166,"width":374,"height":11}},{"id":"7ae84dbc-ec3f-46ad-a6b4-806c506e87af","block_type":"box","text":"BlackRock Investment Management, LLC (“BIM”) or BlackRock Institutional Trust Company, N.A. (“BTC”), as","page_number":127,"box":{"x":102,"y":188,"width":768,"height":12}},{"id":"cc589d56-9092-40ec-b073-b1ccd9a52ded","block_type":"box","text":"applicable, each an affiliate of BlackRock, pursuant to SEC exemptive relief, acts as securities lending agent to, and","page_number":127,"box":{"x":69,"y":203,"width":829,"height":12}},{"id":"2c4fbcdf-917a-4479-8db1-ceefc8bca6a5","block_type":"box","text":"receives a share of securities lending revenues from, the Funds. BlackRock will also receive compensation for","page_number":127,"box":{"x":69,"y":218,"width":785,"height":12}},{"id":"249becf6-3909-4a45-95f4-55f7e7d0b050","block_type":"box","text":"managing the reinvestment of the cash collateral from securities lending. There are potential conflicts of interests in","page_number":127,"box":{"x":69,"y":234,"width":829,"height":11}},{"id":"7bb17855-d084-4c30-8655-a3af6df9ec35","block_type":"box","text":"managing a securities lending program, including but not limited to: (i) BlackRock as securities lending agent may","page_number":127,"box":{"x":69,"y":249,"width":809,"height":11}},{"id":"e64cc897-b232-4547-8e2f-6b4a200b91a4","block_type":"box","text":"have an incentive to, among other things, increase or decrease the amount of securities on loan or to lend par ticular","page_number":127,"box":{"x":69,"y":264,"width":833,"height":11}},{"id":"b60ea479-d4a3-4596-ad52-630a18d7f8a4","block_type":"box","text":"securities in order to generate additional risk-adjusted revenue for BlackRock and its affiliates; and (ii) BlackRock as","page_number":127,"box":{"x":69,"y":279,"width":829,"height":11}},{"id":"3588dac6-6900-4a5d-9668-87c7fffaf70b","block_type":"box","text":"securities lending agent may have an incentive to allocate loans to clients that would provide more revenue to","page_number":127,"box":{"x":69,"y":294,"width":783,"height":11}},{"id":"75de2b40-7e9e-452d-83e7-b3d4e9d08bff","block_type":"box","text":"BlackRock. As described fur ther below, BlackRock seeks to mitigate this conflict by providing its securities lending","page_number":127,"box":{"x":70,"y":309,"width":814,"height":11}},{"id":"9efe18fa-7024-475b-9e88-5d5365b3036e","block_type":"box","text":"clients with equal lending oppor tunities over time in order to approximate pro rata allocation.","page_number":127,"box":{"x":69,"y":325,"width":660,"height":11}},{"id":"b6121498-8245-4dea-aece-11aa6199658e","block_type":"box","text":"As par t of its securities lending program, BlackRock indemnifies the Funds and cer tain other clients and/or","page_number":127,"box":{"x":101,"y":347,"width":767,"height":11}},{"id":"eed8f4ce-3af8-4ba3-8391-1ce890c8a448","block_type":"box","text":"funds against a shor tfall in collateral in the event of borrower default. On a regular basis, BlackRock calculates the","page_number":127,"box":{"x":68,"y":362,"width":820,"height":11}},{"id":"f843a2fb-78fe-4c56-9e43-1ffd1e1053bc","block_type":"box","text":"potential dollar exposure of collateral shor tfall resulting from a borrower default (“shor tfall risk”) in the securities","page_number":127,"box":{"x":70,"y":377,"width":806,"height":12}},{"id":"01280e50-f40d-4323-bb72-2de4de8b81fa","block_type":"box","text":"lending program. BlackRock establishes program-wide borrower limits (“credit limits”) to actively manage borrower","page_number":127,"box":{"x":70,"y":393,"width":816,"height":11}},{"id":"c8e547ee-4aee-4887-9540-a3df68a16f5e","block_type":"box","text":"specific credit exposure. BlackRock oversees the risk model that calculates projected collateral shor tfall values using","page_number":127,"box":{"x":69,"y":407,"width":838,"height":12}},{"id":"98a843cb-6232-4547-973b-4fbe6eae4f53","block_type":"box","text":"loan-level factors such as loan and collateral type and market value as well as specific borrower credit","page_number":127,"box":{"x":70,"y":423,"width":727,"height":11}},{"id":"fb6d08bd-cf15-4acd-a33f-a689d7207b90","block_type":"box","text":"characteristics. When necessary, BlackRock may adjust securities lending program attributes by restricting eligible","page_number":127,"box":{"x":69,"y":438,"width":815,"height":11}},{"id":"4354d828-204d-417f-b900-dd68c993f9dd","block_type":"box","text":"collateral or reducing borrower credit limits. As a result, the management of program-wide exposure as well as","page_number":127,"box":{"x":69,"y":453,"width":786,"height":11}},{"id":"a91f701a-91bc-4eff-8038-ef14a51d31f9","block_type":"box","text":"BlackRock-specific indemnification exposure may affect the amount of securities lending activity BlackRock may","page_number":127,"box":{"x":70,"y":468,"width":796,"height":11}},{"id":"8a5e5e81-f5cb-432d-bde9-1d1c9f8570dc","block_type":"box","text":"conduct at any given point in time by reducing the volume of lending oppor tunities for cer tain loans (including by","page_number":127,"box":{"x":69,"y":483,"width":799,"height":11}},{"id":"4df9037d-89e7-46ff-88e4-8cac996073a1","block_type":"box","text":"asset type, collateral type and/or revenue profile).","page_number":127,"box":{"x":69,"y":498,"width":356,"height":11}},{"id":"c3972a71-f5ec-46fb-95ab-2bc924aaa521","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":127,"box":{"x":102,"y":521,"width":801,"height":11}},{"id":"ecd2556a-d514-4e31-831e-c6d54e14b3e1","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":127,"box":{"x":68,"y":536,"width":817,"height":11}},{"id":"1695ea5c-67c7-41c5-af3e-c4d4d7a378b2","block_type":"box","text":"and/or market rules, liquidity considerations, or credit considerations, which may impact Funds by reducing or","page_number":127,"box":{"x":69,"y":551,"width":784,"height":11}},{"id":"561a0d25-8551-4318-b7ff-0386b67dd095","block_type":"box","text":"eliminating the volume of lending oppor tunities for cer tain types of loans, loans in par ticular markets, loans of","page_number":127,"box":{"x":69,"y":566,"width":789,"height":11}},{"id":"2d42c877-ac23-4666-9659-7fbacb3eccc3","block_type":"box","text":"par ticular securities or types of securities, or for loans overall. In addition, some borrowers may prefer cer tain","page_number":127,"box":{"x":70,"y":581,"width":783,"height":11}},{"id":"967ad50c-2beb-4cc2-a3c0-84d11a07af55","block_type":"box","text":"BlackRock lenders that provide additional protections against lender default that are favored by their prudential","page_number":127,"box":{"x":70,"y":596,"width":790,"height":12}},{"id":"dec08220-eaf0-4ee2-b786-87d0f0717f9f","block_type":"box","text":"regulation.","page_number":127,"box":{"x":69,"y":612,"width":73,"height":11}},{"id":"16fefa05-5acf-4b19-b031-ae56d1d9e9fb","block_type":"box","text":"BlackRock uses a predetermined systematic process in order to approximate pro rata allocation over time. In","page_number":127,"box":{"x":102,"y":634,"width":777,"height":11}},{"id":"48d4e0a5-d306-4213-a57a-50be74fbd4fd","block_type":"box","text":"order to allocate a loan to a por tfolio: (i) BlackRock as a whole must have sufficient lending capacity pursuant to the","page_number":127,"box":{"x":69,"y":649,"width":830,"height":12}},{"id":"bb72bdc5-f398-4f5a-84ce-4d085d0cdb34","block_type":"box","text":"various program limits (","page_number":127,"box":{"x":68,"y":665,"width":168,"height":11}},{"id":"4f0e0361-def6-43c3-aafb-4674137cd56a","block_type":"box","text":"i.e.","page_number":127,"box":{"x":238,"y":665,"width":20,"height":8}},{"id":"595d39fc-af08-40bd-8525-72ae9c04eace","block_type":"box","text":"indemnification exposure limit and borrower credit limits); (ii) the lending por tfolio must","page_number":127,"box":{"x":265,"y":664,"width":621,"height":12}},{"id":"6a9e5a41-8995-4d6e-aed5-1e06848fdf2f","block_type":"box","text":"hold the asset at the time a loan oppor tunity arrives; and (iii) the lending por tfolio must also have enough inventory,","page_number":127,"box":{"x":69,"y":680,"width":827,"height":11}},{"id":"6051b7cf-0ada-437d-83d4-f9b68d131588","block_type":"box","text":"either on its own or when aggregated with other por tfolios into one single market delivery, to satisfy the loan request.","page_number":127,"box":{"x":69,"y":695,"width":836,"height":11}},{"id":"7d276c90-be12-4485-8f55-e46bf0440947","block_type":"box","text":"In doing so, BlackRock seeks to provide equal lending oppor tunities for all por tfolios, independent of whether","page_number":127,"box":{"x":70,"y":710,"width":780,"height":11}},{"id":"9a453c63-afd6-494f-9b17-7f09691536f7","block_type":"box","text":"BlackRock indemnifies the por tfolio. Equal oppor tunities for lending por tfolios does not guarantee equal outcomes.","page_number":127,"box":{"x":70,"y":725,"width":820,"height":11}},{"id":"aaa834e5-2768-4a86-8663-5dd70479a447","block_type":"box","text":"Specifically, shor t and long-term outcomes for individual clients may vary due to asset mix, asset/liability spreads on","page_number":127,"box":{"x":69,"y":740,"width":834,"height":11}},{"id":"412881fa-f87c-48df-a870-6f8bc7000e4c","block_type":"box","text":"different securities, and the overall limits imposed by the firm.","page_number":127,"box":{"x":69,"y":755,"width":444,"height":11}},{"id":"c675ed34-afdc-403c-b0f8-f082b3a764d9","block_type":"box","text":"Purchases and sales of securities and other assets for a Fund may be aggregated with orders for other","page_number":127,"box":{"x":102,"y":778,"width":734,"height":11}},{"id":"a20c5c97-6bc6-4e55-b9a0-2507c7397d0c","block_type":"box","text":"BlackRock client accounts, including with accounts that pay different transaction costs solely due to the fact that they","page_number":127,"box":{"x":70,"y":793,"width":840,"height":11}},{"id":"faf45f3d-cde8-4b5f-aba3-ee4f27b198b9","block_type":"box","text":"have different research payment arrangements. BlackRock, however, is not required to aggregate orders if por tfolio","page_number":127,"box":{"x":69,"y":808,"width":822,"height":11}},{"id":"ecbe505a-0a60-468a-9aaa-1082f7872e00","block_type":"box","text":"management decisions for different accounts are made separately, or if they determine that aggregating is not","page_number":127,"box":{"x":69,"y":823,"width":788,"height":12}},{"id":"ea662178-7cef-496b-a2a9-fb12c8a91d2e","block_type":"box","text":"practicable or required, or in cases involving client direction.","page_number":127,"box":{"x":70,"y":839,"width":426,"height":11}},{"id":"64acc9e5-6a28-49b7-a69f-d816646f3970","block_type":"box","text":"Prevailing trading activity frequently may make impossible the receipt of the same price or execution on the","page_number":127,"box":{"x":102,"y":861,"width":763,"height":11}},{"id":"ac1615a1-ebad-4c27-bb29-e36be2aac650","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":127,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"5fe6198d-890f-44ab-b95c-60cd6ee379ac","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":127,"box":{"x":68,"y":891,"width":767,"height":12}},{"id":"1f9c6277-af41-45c4-aa36-5488f289a772","block_type":"box","text":"II-92","page_number":127,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"60dcabc4-14f1-4a97-a63f-b800a3da74e5","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":127,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"4d0caf6d-0fa0-4336-b6ec-bbfe8cc06085","block_type":"box","text":"occasions to the disadvantage of the Funds. In addition, under cer tain circumstances, the Funds will not be charged","page_number":128,"box":{"x":69,"y":45,"width":828,"height":11}},{"id":"b00925b6-21b3-45c2-a715-18467d46bd06","block_type":"box","text":"the same commission or commission equivalent rates in connection with an aggregated order.","page_number":128,"box":{"x":68,"y":60,"width":672,"height":11}},{"id":"94bbac98-c2f5-48c4-aed2-495a276599c0","block_type":"box","text":"As discussed in the section below entitled “Por tfolio Transactions and Brokerage—Transactions in Por tfolio","page_number":128,"box":{"x":101,"y":82,"width":767,"height":12}},{"id":"63c2f7b8-0c5e-4856-bc01-c00d3032216e","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":128,"box":{"x":69,"y":98,"width":832,"height":11}},{"id":"856b7149-1285-4a60-b731-fdcf0b712dc7","block_type":"box","text":"commission for effecting a transaction that exceeds the amount another broker or dealer would have charged for","page_number":128,"box":{"x":69,"y":113,"width":805,"height":11}},{"id":"c7a0da83-781b-4e93-8e21-b13cf45d3b10","block_type":"box","text":"effecting the same transaction in recognition of the value of brokerage and research services provided by that broker","page_number":128,"box":{"x":69,"y":128,"width":836,"height":11}},{"id":"0b031abf-3bfe-4208-8334-cc7c00d2acbc","block_type":"box","text":"or dealer. Under MiFID II, EU investment managers, including BlackRock International Limited (“BIL”) which acts as a","page_number":128,"box":{"x":69,"y":143,"width":831,"height":11}},{"id":"e76876b1-33df-4eee-8a17-a71a9425b3b1","block_type":"box","text":"sub-adviser to cer tain Funds, pay for research from brokers and dealers directly out of their own resources, rather","page_number":128,"box":{"x":69,"y":158,"width":812,"height":11}},{"id":"bc0832eb-bbc5-472e-a3eb-d6d5844ab9fe","block_type":"box","text":"than through client commissions.","page_number":128,"box":{"x":68,"y":173,"width":237,"height":11}},{"id":"37825e33-e395-4184-a8bc-abef590866f7","block_type":"box","text":"Subject to applicable law, BlackRock may select brokers that furnish BlackRock, the Funds, other BlackRock","page_number":128,"box":{"x":102,"y":196,"width":770,"height":11}},{"id":"d8a99fc9-ea54-4f67-b624-a9c14e112757","block_type":"box","text":"client accounts or personnel, directly or through correspondent relationships, with research or other appropriate","page_number":128,"box":{"x":69,"y":211,"width":797,"height":11}},{"id":"28a6b963-1361-40d2-a850-5ccc2c17a0ff","block_type":"box","text":"services which provide, in BlackRock’s view, appropriate assistance to BlackRock in the investment decision making","page_number":128,"box":{"x":69,"y":226,"width":830,"height":11}},{"id":"32ab574e-98e3-42fb-88ae-c6fc7863b313","block_type":"box","text":"process (including with respect to futures, fixed-price offerings and OTC transactions). Such research or other","page_number":128,"box":{"x":70,"y":241,"width":780,"height":11}},{"id":"86cd6594-a1a4-46b4-9347-83a3ec166348","block_type":"box","text":"services may include, to the extent permitted by law, research repor ts on companies, industries and securities;","page_number":128,"box":{"x":69,"y":257,"width":795,"height":10}},{"id":"903c93f0-f037-40b5-be12-805c8395e209","block_type":"box","text":"economic and financial data; financial publications; proxy analysis; trade industry seminars; computer data bases;","page_number":128,"box":{"x":69,"y":271,"width":815,"height":12}},{"id":"aac837a5-737f-450e-914c-90ad5af9be3e","block_type":"box","text":"research-oriented software and other services and products.","page_number":128,"box":{"x":69,"y":286,"width":430,"height":11}},{"id":"9f375a38-517b-469d-ae24-bcf8b18f7fac","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":128,"box":{"x":102,"y":309,"width":785,"height":11}},{"id":"a5fb27d2-df98-4213-a08e-ca57fe7160ff","block_type":"box","text":"BlackRock client accounts, including in connection with BlackRock client accounts other than those that pay","page_number":128,"box":{"x":70,"y":325,"width":768,"height":11}},{"id":"319e99a3-2afd-40a3-9c4f-7f2373c3f1cf","block_type":"box","text":"commissions to the broker relating to the research or other service arrangements. Such products and services may","page_number":128,"box":{"x":69,"y":340,"width":826,"height":11}},{"id":"513049f8-320f-4f1e-8f6b-08c5c66a69d8","block_type":"box","text":"dispropor tionately benefit other BlackRock client accounts relative to the Funds based on the amount of brokerage","page_number":128,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"c655bc76-d5c9-45f1-8d5f-5a4cc01e6667","block_type":"box","text":"commissions paid by the Funds and such other BlackRock client accounts. For example, research or other services","page_number":128,"box":{"x":69,"y":370,"width":821,"height":11}},{"id":"0a785090-d4cd-4b1d-a5f1-b23738d37f27","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":128,"box":{"x":68,"y":385,"width":815,"height":11}},{"id":"d054fd27-2169-466f-9631-3d2f8f14109a","block_type":"box","text":"other BlackRock client accounts may receive the benefit, including dispropor tionate benefits, of economies of scale","page_number":128,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"75153af9-1c65-4e85-96cc-f03bf4096763","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":128,"box":{"x":69,"y":415,"width":804,"height":11}},{"id":"4bb40629-2c8e-4ac3-8bbf-30453bce194c","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":128,"box":{"x":70,"y":430,"width":819,"height":11}},{"id":"e65f3c05-9965-476a-b4d3-32e0e303e76d","block_type":"box","text":"and services itself.","page_number":128,"box":{"x":69,"y":445,"width":134,"height":9}},{"id":"34438da0-2b90-47da-9b86-fa78785a2bbb","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may endeavor to execute trades through brokers who, pursuant","page_number":128,"box":{"x":102,"y":468,"width":793,"height":11}},{"id":"44978a05-8374-4dca-89c4-5b443a9bd2d7","block_type":"box","text":"to such arrangements, provide research or other services in order to ensure the continued receipt of research or","page_number":128,"box":{"x":68,"y":483,"width":805,"height":11}},{"id":"e51211a3-3ba3-4cf4-a060-599d05025ff6","block_type":"box","text":"other services BlackRock believes are useful in its investment decision-making process. BlackRock may from time to","page_number":128,"box":{"x":69,"y":498,"width":833,"height":11}},{"id":"908dccca-dc21-4113-913e-1501a39b13a6","block_type":"box","text":"time choose not to engage in the above described arrangements to varying degrees. BlackRock, unless prohibited by","page_number":128,"box":{"x":68,"y":514,"width":836,"height":11}},{"id":"2f74cf09-12f9-4767-ae3b-7f5a8af1a147","block_type":"box","text":"applicable law, may also enter into commission sharing arrangements under which BlackRock may execute","page_number":128,"box":{"x":69,"y":529,"width":760,"height":11}},{"id":"dfe8e721-de74-41ce-81f0-662fedf5d540","block_type":"box","text":"transactions through a broker-dealer and request that the broker-dealer allocate a por tion of the commissions or","page_number":128,"box":{"x":68,"y":543,"width":803,"height":12}},{"id":"619aabdf-c0ae-471e-b64a-7a8bd323a2f5","block_type":"box","text":"commission credits to another firm that provides research to BlackRock. To the extent that BlackRock engages in","page_number":128,"box":{"x":69,"y":559,"width":807,"height":11}},{"id":"03f5a9bb-47db-41f8-84d3-c968801492cc","block_type":"box","text":"commission sharing arrangements, many of the same conflicts related to traditional soft dollars may exist.","page_number":128,"box":{"x":69,"y":574,"width":760,"height":11}},{"id":"7daa5ef3-15de-4703-b8f8-359dea1b4bcd","block_type":"box","text":"BlackRock may utilize cer tain electronic crossing networks (“ECNs”) (including, without limitation, ECNs in which","page_number":128,"box":{"x":102,"y":597,"width":799,"height":11}},{"id":"dd08bcd4-253b-4a5c-ba2e-094fd210f2af","block_type":"box","text":"BlackRock has an investment or other interest, to the extent permitted by applicable law) in executing client","page_number":128,"box":{"x":70,"y":612,"width":767,"height":11}},{"id":"5b01db92-4ef5-4909-acf0-cad051ec6662","block_type":"box","text":"securities transactions for cer tain types of securities. These ECNs may charge fees for their services, including","page_number":128,"box":{"x":69,"y":627,"width":794,"height":11}},{"id":"3725cb34-1def-4ac3-829c-77cabcc2c379","block_type":"box","text":"access fees and transaction fees. The transaction fees, which are similar to commissions or markups/ markdowns,","page_number":128,"box":{"x":69,"y":642,"width":825,"height":11}},{"id":"86e2e53f-0b25-43a6-a5e9-ff4303d4e9ec","block_type":"box","text":"will generally be charged to clients and, like commissions and markups/markdowns, would generally be included in","page_number":128,"box":{"x":68,"y":657,"width":821,"height":11}},{"id":"b13fe102-d454-4911-acc5-fd02bb93e017","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":128,"box":{"x":68,"y":672,"width":833,"height":11}},{"id":"88eebd1e-e582-4ca0-8abe-653fadefade6","block_type":"box","text":"executing transactions on behalf of clients, including the Funds. In cer tain circumstances, ECNs may offer volume","page_number":128,"box":{"x":69,"y":687,"width":812,"height":11}},{"id":"1d13ba49-dc66-4e7a-88bd-8d8582b565d7","block_type":"box","text":"discounts that will reduce the access fees typically paid by BlackRock. BlackRock will only utilize ECNs consistent","page_number":128,"box":{"x":69,"y":702,"width":809,"height":11}},{"id":"48ee6a8d-600b-4ee1-a1f0-6da85acf4b35","block_type":"box","text":"with its obligation to seek to obtain best execution in client transactions.","page_number":128,"box":{"x":68,"y":718,"width":519,"height":11}},{"id":"67852c82-d7d4-4f61-9359-876a3a104103","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":128,"box":{"x":102,"y":740,"width":793,"height":11}},{"id":"be86e608-51ec-426d-b3d9-5dc98114dbb2","block_type":"box","text":"stock exchange. Transactions for a Fund may be executed on MEMX if third par ty brokers select MEMX as the","page_number":128,"box":{"x":69,"y":755,"width":782,"height":11}},{"id":"d9e85a18-0e25-4be4-a5cb-237c2e773ecb","block_type":"box","text":"appropriate venue for execution of orders placed by BlackRock traders on behalf of client por tfolios.","page_number":128,"box":{"x":69,"y":770,"width":710,"height":11}},{"id":"00a7c080-5d21-434b-8f93-7356768a52df","block_type":"box","text":"BlackRock has adopted policies and procedures designed to prevent conflicts of interest from influencing proxy","page_number":128,"box":{"x":102,"y":793,"width":792,"height":11}},{"id":"7beea300-6bbf-4df8-b7bb-bada42376eb3","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":128,"box":{"x":68,"y":808,"width":784,"height":11}},{"id":"1f20acc1-5c49-430b-a469-433846ad8b85","block_type":"box","text":"decisions are made in accordance with BlackRock’s fiduciary obligations to its clients. Never theless, notwithstanding","page_number":128,"box":{"x":69,"y":823,"width":837,"height":12}},{"id":"07ef0e17-968e-43cb-ba19-dc1fdf29a8a8","block_type":"box","text":"such proxy voting policies and procedures, actual proxy voting decisions of BlackRock may have the effect of favoring","page_number":128,"box":{"x":69,"y":838,"width":835,"height":12}},{"id":"e8d2c065-693c-4146-a8c0-37a8d464b6ee","block_type":"box","text":"the interests of other clients or businesses of other divisions or units of BlackRock, provided that BlackRock believes","page_number":128,"box":{"x":68,"y":853,"width":837,"height":11}},{"id":"18582442-a236-416c-a2ce-736a70ff489f","block_type":"box","text":"such voting decisions to be in accordance with its fiduciary obligations. For a more detailed discussion of these","page_number":128,"box":{"x":69,"y":869,"width":795,"height":11}},{"id":"7eba2243-17ec-4947-82b3-2ec23851db0c","block_type":"box","text":"policies and procedures, see “Proxy Voting Policies and Procedures.”","page_number":128,"box":{"x":70,"y":884,"width":490,"height":11}},{"id":"5d1c63a2-74e5-4f9a-ac60-8d271fac8dda","block_type":"box","text":"II-93","page_number":128,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"5e1de7dc-a7fe-43f7-94ff-fbb3b6647613","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":128,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"051bc187-1df2-4393-9594-a0e37e6a87dc","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":129,"box":{"x":102,"y":45,"width":757,"height":11}},{"id":"f5cc64cb-4341-48e0-8506-48651a066b85","block_type":"box","text":"separately managed accounts) may, subject to compliance with applicable law, purchase and hold shares of a Fund.","page_number":129,"box":{"x":69,"y":60,"width":825,"height":11}},{"id":"8af05ca9-da5a-4c3a-b818-c71450830acc","block_type":"box","text":"Increasing a Fund’s assets may enhance investment flexibility and diversification and may contribute to economies of","page_number":129,"box":{"x":70,"y":75,"width":837,"height":11}},{"id":"45eec0f1-bfd9-4f9a-8aab-200f65c25d12","block_type":"box","text":"scale that tend to reduce the Fund’s expense ratio. BlackRock reserves the right, subject to compliance with","page_number":129,"box":{"x":69,"y":90,"width":774,"height":11}},{"id":"adca7b79-5669-44eb-8217-76f62f5bee45","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":129,"box":{"x":69,"y":105,"width":796,"height":11}},{"id":"182f7bdd-5c4f-4f8e-b349-e38e2e525002","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":129,"box":{"x":69,"y":120,"width":830,"height":12}},{"id":"5b8cc07e-55c1-4932-b425-9131dc629e03","block_type":"box","text":"an adverse effect on the Fund’s investment flexibility, por tfolio diversification and expense ratio. BlackRock seeks to","page_number":129,"box":{"x":69,"y":135,"width":831,"height":11}},{"id":"3022c286-5a55-4737-aaa8-170116a4bb0e","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":129,"box":{"x":69,"y":150,"width":834,"height":12}},{"id":"1327297c-e980-4ba2-81a6-3e876a56dcb8","block_type":"box","text":"not obligated to do so and may elect not to do so.","page_number":129,"box":{"x":69,"y":166,"width":355,"height":11}},{"id":"46d4b397-d901-4c22-933b-4372f404f62a","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":129,"box":{"x":102,"y":188,"width":742,"height":12}},{"id":"f4d823e2-4700-4e04-90ab-aabfdc93c34a","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":129,"box":{"x":70,"y":203,"width":838,"height":12}},{"id":"fbee9bdb-be2b-4efb-bf3e-8697b2e1e592","block_type":"box","text":"structured notes) by entities for which BlackRock provides and is compensated for cash management services","page_number":129,"box":{"x":69,"y":218,"width":788,"height":12}},{"id":"e11a09c6-696e-43c8-8249-cfe81b56b1e5","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":129,"box":{"x":69,"y":234,"width":816,"height":11}},{"id":"00009d26-3597-4c23-b44a-3d133dfef0cc","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":129,"box":{"x":69,"y":249,"width":806,"height":11}},{"id":"1692855d-57e3-4b92-99f7-ded6beff95d5","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":129,"box":{"x":68,"y":264,"width":822,"height":11}},{"id":"e5ba810e-5391-49f0-881f-fc9fe6a41bab","block_type":"box","text":"and sales of securities. As indicated below, BlackRock may engage in transactions with companies in which","page_number":129,"box":{"x":69,"y":279,"width":766,"height":11}},{"id":"44861707-9317-47c3-b684-14a5856f29e5","block_type":"box","text":"BlackRock-advised funds or other clients of BlackRock have an investment.","page_number":129,"box":{"x":70,"y":294,"width":533,"height":9}},{"id":"c83fcd09-a3ae-4344-a3e8-7373a1c99c01","block_type":"box","text":"BlackRock and its personnel and other financial service providers may have interests in promoting sales of the","page_number":129,"box":{"x":102,"y":317,"width":789,"height":11}},{"id":"48477add-2915-43bb-99da-70e936094898","block_type":"box","text":"Funds. With respect to BlackRock and its personnel, the remuneration and profitability relating to services to and","page_number":129,"box":{"x":70,"y":332,"width":805,"height":11}},{"id":"3d2fb1c2-e49c-42fa-a8da-59f626c45f55","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":129,"box":{"x":69,"y":347,"width":813,"height":11}},{"id":"b05b3958-995a-4397-bd6f-1d19529d0f6a","block_type":"box","text":"sales of cer tain funds or other products that might be provided or offered. BlackRock and its sales personnel may","page_number":129,"box":{"x":69,"y":362,"width":814,"height":11}},{"id":"1e530bcc-23ab-4dcd-80cb-ee7de006320b","block_type":"box","text":"directly or indirectly receive a por tion of the fees and commissions charged to the Funds or their shareholders.","page_number":129,"box":{"x":69,"y":377,"width":788,"height":12}},{"id":"80607d78-21d1-4931-824c-2f46fbc9c25b","block_type":"box","text":"BlackRock and its advisory or other personnel may also benefit from increased amounts of assets under","page_number":129,"box":{"x":70,"y":392,"width":745,"height":12}},{"id":"265aabd8-a15d-4ec9-adce-9afc8a28afe9","block_type":"box","text":"management. Fees and commissions may also be higher than for other products or services, and the remuneration","page_number":129,"box":{"x":69,"y":407,"width":822,"height":12}},{"id":"7fd1c7e2-8ede-4419-af52-b344c9d7b10d","block_type":"box","text":"and profitability to BlackRock and such personnel resulting from transactions on behalf of or management of the","page_number":129,"box":{"x":69,"y":423,"width":801,"height":11}},{"id":"cf54bf02-845f-461c-a0e5-fb89c05ab480","block_type":"box","text":"Funds may be greater than the remuneration and profitability resulting from other funds or products.","page_number":129,"box":{"x":70,"y":438,"width":711,"height":11}},{"id":"dd2cd97f-565b-4832-8bc9-6db5dd28950e","block_type":"box","text":"BlackRock may provide valuation assistance to cer tain clients with respect to cer tain securities or other","page_number":129,"box":{"x":102,"y":461,"width":741,"height":11}},{"id":"1578fcf6-0f52-46c6-93c4-a0ba5f79e4f1","block_type":"box","text":"investments and the valuation recommendations made for such clients’ accounts may differ from the valuations for","page_number":129,"box":{"x":70,"y":475,"width":823,"height":12}},{"id":"0c3ab59a-027a-4b8e-87b6-1696dda4a507","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":129,"box":{"x":68,"y":491,"width":829,"height":11}},{"id":"d9864322-de3c-41d7-bfb6-41cbe40417b4","block_type":"box","text":"broker-dealer quotes or other data sources unavailable to the Fund’s pricing vendors. While BlackRock will generally","page_number":129,"box":{"x":69,"y":506,"width":825,"height":11}},{"id":"20cae8b4-76b3-4cb0-ad45-fd291a29233e","block_type":"box","text":"communicate its valuation information or determinations to a Fund’s pricing vendors and/or fund accountants, there","page_number":129,"box":{"x":69,"y":521,"width":830,"height":11}},{"id":"d83f184c-d6b1-419b-9480-bba75f76a34c","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":129,"box":{"x":69,"y":536,"width":824,"height":11}},{"id":"724ff167-f669-4cec-a132-d9505c908b9e","block_type":"box","text":"other investment than the valuation for such security or investment determined or recommended by BlackRock.","page_number":129,"box":{"x":69,"y":551,"width":792,"height":11}},{"id":"d329fb40-d6ec-4465-bea8-bb4eef0de780","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":129,"box":{"x":101,"y":574,"width":784,"height":11}},{"id":"73408d82-2f26-4b1a-bffd-7d5de162c24f","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":129,"box":{"x":69,"y":589,"width":837,"height":11}},{"id":"d93ef98b-f467-41a5-82d0-9e396a8d603a","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":129,"box":{"x":68,"y":604,"width":803,"height":11}},{"id":"0184ac95-ad9a-4026-a368-385cf67e95e8","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":129,"box":{"x":69,"y":619,"width":831,"height":11}},{"id":"a58abdd7-ecf0-4d6e-ba8f-944d18c5e286","block_type":"box","text":"assistance from other BlackRock pricing committees and in accordance with BlackRock’s policies and procedures","page_number":129,"box":{"x":69,"y":634,"width":811,"height":12}},{"id":"171b925e-a110-4526-b243-46bd75d46d1d","block_type":"box","text":"(the “Valuation Procedures”). When determining a “fair value price,” the 2a-5 Committee seeks to determine the","page_number":129,"box":{"x":69,"y":649,"width":802,"height":12}},{"id":"7b88c493-e497-4561-894a-c92a9b9ef7eb","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":129,"box":{"x":70,"y":664,"width":829,"height":12}},{"id":"ecbc3b2c-378a-4f81-a606-53b9a70c7018","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":129,"box":{"x":68,"y":680,"width":832,"height":11}},{"id":"a843d581-07ea-4ae6-bba2-35a1585851a1","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":129,"box":{"x":69,"y":695,"width":837,"height":11}},{"id":"d0c2778e-48a8-42a5-acc7-5eced065c002","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":129,"box":{"x":68,"y":710,"width":829,"height":11}},{"id":"df55d744-1636-48ea-b0aa-ad2bd060a3e1","block_type":"box","text":"based on analytical values determined by BlackRock using proprietary or third par ty valuation models, fair value","page_number":129,"box":{"x":69,"y":725,"width":796,"height":11}},{"id":"95d2a57f-e383-4752-9f8b-8b541675f5ef","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":129,"box":{"x":69,"y":740,"width":839,"height":11}},{"id":"37af5221-02a1-4a02-8dd5-83eda09866cf","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":129,"box":{"x":70,"y":755,"width":800,"height":11}},{"id":"1c19604c-a3a8-453a-a36a-76b92e7529c4","block_type":"box","text":"period in which the par ticular fair values were used in determining a Fund’s NAV. As a result, a Fund’s sale or","page_number":129,"box":{"x":70,"y":770,"width":779,"height":12}},{"id":"3dd9e0e0-62c5-4c1e-ba5e-3078e6d55630","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":129,"box":{"x":69,"y":785,"width":834,"height":12}},{"id":"e53c32a4-3124-45c6-9fcc-05d00f0c7347","block_type":"box","text":"may have the effect of diluting or increasing the economic interest of existing shareholders and may affect the","page_number":129,"box":{"x":69,"y":801,"width":788,"height":11}},{"id":"0471052c-5366-4af3-810a-a780cd04e3e4","block_type":"box","text":"amount of revenue received by BlackRock with respect to services for which it receives an asset-based fee.","page_number":129,"box":{"x":69,"y":816,"width":765,"height":11}},{"id":"74f21bdd-0565-4436-9a0e-43bbb8866b3d","block_type":"box","text":"To the extent permitted by applicable law, a Fund may invest all or some of its shor t term cash investments in","page_number":129,"box":{"x":101,"y":838,"width":784,"height":11}},{"id":"4d587aa7-1393-4fd1-9932-6f16d4c6a67a","block_type":"box","text":"any money market fund or similarly-managed private fund advised or managed by BlackRock. In connection with any","page_number":129,"box":{"x":69,"y":853,"width":823,"height":12}},{"id":"7a80d28f-29f2-46c8-bf78-59bb29e3b42d","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":129,"box":{"x":69,"y":869,"width":833,"height":11}},{"id":"f6c28e8f-2e43-432a-a709-00aabf3217f4","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":129,"box":{"x":69,"y":884,"width":822,"height":11}},{"id":"a44e4359-ab90-4f87-8a90-b67c6d037662","block_type":"box","text":"some additional expenses.","page_number":129,"box":{"x":69,"y":899,"width":190,"height":11}},{"id":"41f5249e-81d6-4729-8f86-b9ac7144c2ba","block_type":"box","text":"II-94","page_number":129,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"4d3587f9-41af-47eb-a538-f00e16e8f123","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":129,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"52038910-8717-49e3-bddc-592bac8097a5","block_type":"box","text":"BlackRock and its directors, officers and employees, may buy and sell securities or other investments for their","page_number":130,"box":{"x":102,"y":45,"width":787,"height":11}},{"id":"f39f3843-582e-4d96-a22c-efda678cd1f7","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":130,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"5fa2d11f-2fda-420e-a996-b66bd89ee721","block_type":"box","text":"differing trading and investment strategies or constraints, positions may be taken by directors, officers and","page_number":130,"box":{"x":69,"y":75,"width":764,"height":11}},{"id":"5699ec96-e986-4ded-88cf-3cdaadf9fb03","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":130,"box":{"x":69,"y":90,"width":809,"height":11}},{"id":"f7d13e2f-56be-4040-89ac-803c4cc7d3d9","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":130,"box":{"x":70,"y":105,"width":802,"height":11}},{"id":"6e858f0f-0132-4675-b049-ce249eb1ffb2","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":130,"box":{"x":70,"y":120,"width":828,"height":11}},{"id":"02eff104-1408-4942-ab48-6a44faa501ce","block_type":"box","text":"restricts securities trading in the personal accounts of investment professionals and others who normally come into","page_number":130,"box":{"x":69,"y":135,"width":825,"height":12}},{"id":"0f514a35-cbcd-437f-960d-40bc3f963431","block_type":"box","text":"possession of information regarding the Fund’s por tfolio transactions. Each Code of Ethics is also available on the","page_number":130,"box":{"x":70,"y":150,"width":816,"height":12}},{"id":"571702ad-601f-4be9-9316-670ee51160a5","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":130,"box":{"x":70,"y":166,"width":836,"height":11}},{"id":"4d34a961-e089-4b1a-92bf-35e55be4425d","block_type":"box","text":"a duplicating fee, by e-mail at publicinfo@sec.gov.","page_number":130,"box":{"x":69,"y":181,"width":352,"height":11}},{"id":"83117c7e-7a56-407e-a2d1-9ee439e7935b","block_type":"box","text":"BlackRock will not purchase securities or other proper ty from, or sell securities or other proper ty to, a Fund,","page_number":130,"box":{"x":102,"y":203,"width":768,"height":12}},{"id":"bc2ca1ea-b7fd-4937-be6f-11cc63bff4fd","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":130,"box":{"x":69,"y":219,"width":836,"height":11}},{"id":"99fad0bd-8755-4d5f-a702-073beccee002","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":130,"box":{"x":68,"y":234,"width":839,"height":10}},{"id":"d3b06389-8c23-4363-afdb-721a19afdf45","block_type":"box","text":"or investment advisers or pursuant to exemptive orders granted to the Funds and/or BlackRock by the Commission.","page_number":130,"box":{"x":69,"y":249,"width":824,"height":11}},{"id":"a63d74e1-0a4f-4ed7-bb5a-fb390aae1d67","block_type":"box","text":"These transactions would be effected in circumstances in which BlackRock determined that it would be appropriate","page_number":130,"box":{"x":68,"y":264,"width":824,"height":11}},{"id":"b1a3ef78-3d10-464c-999b-7bab6714b9bb","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":130,"box":{"x":68,"y":279,"width":826,"height":11}},{"id":"989bd993-3414-48e7-94b2-567a87793e2e","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":130,"box":{"x":68,"y":294,"width":810,"height":11}},{"id":"26e3fa76-72d3-4c5e-97cc-32965ce97434","block_type":"box","text":"restricted because of regulatory requirements applicable to BlackRock and/or BlackRock’s internal policies designed","page_number":130,"box":{"x":69,"y":309,"width":834,"height":11}},{"id":"1df600f9-afb5-4e87-8c7e-be6a1aeaae2c","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":130,"box":{"x":68,"y":324,"width":782,"height":11}},{"id":"88b10576-8374-4fa5-b20e-360bde0f6d74","block_type":"box","text":"BlackRock would not be subject to some of those considerations. There may be periods when BlackRock may not","page_number":130,"box":{"x":70,"y":339,"width":807,"height":12}},{"id":"512ccc2c-3253-4c20-ac97-63c2295e134b","block_type":"box","text":"initiate or recommend cer tain types of transactions, or may otherwise restrict or limit its advice regarding cer tain","page_number":130,"box":{"x":70,"y":355,"width":804,"height":11}},{"id":"9001c257-bc3c-471a-bac6-ac6ffa490320","block_type":"box","text":"securities or instruments issued by or related to companies for which BlackRock is per forming advisory or other","page_number":130,"box":{"x":69,"y":370,"width":799,"height":11}},{"id":"be6a3dc0-8671-4e3c-99d5-a1cd82e45333","block_type":"box","text":"services or has proprietary positions. For example, when BlackRock is engaged to provide advisory or risk","page_number":130,"box":{"x":69,"y":385,"width":755,"height":11}},{"id":"86f779ba-7cf5-4061-b0e4-c783f4715aea","block_type":"box","text":"management services for a company, BlackRock may be prohibited from or limited in purchasing or selling securities","page_number":130,"box":{"x":69,"y":400,"width":831,"height":11}},{"id":"edbfb589-4fc5-438b-b8ec-e9640601ae26","block_type":"box","text":"of that company on behalf of a Fund, par ticularly where such services result in BlackRock obtaining material non","page_number":130,"box":{"x":69,"y":415,"width":806,"height":11}},{"id":"39777611-8c17-4676-80db-65fa0a12e6d3","block_type":"box","text":"public information about the company (","page_number":130,"box":{"x":70,"y":430,"width":276,"height":11}},{"id":"13075892-bd37-4b59-86d9-7f3dab63cc05","block_type":"box","text":"e.g.","page_number":130,"box":{"x":348,"y":432,"width":25,"height":9}},{"id":"f588afc7-851a-408e-b1ce-69ea4f17b0e8","block_type":"box","text":", in connection with par ticipation in a creditors’ committee). Moreover,","page_number":130,"box":{"x":376,"y":430,"width":499,"height":11}},{"id":"b10f029b-0f82-430b-947d-95af78fc66a8","block_type":"box","text":"applicable provisions of the Investment Company Act or other regulatory considerations may restrict a Fund or","page_number":130,"box":{"x":69,"y":445,"width":784,"height":12}},{"id":"6333fdce-61e7-4c5d-a4ad-513a21be977e","block_type":"box","text":"BlackRock from effecting cer tain por tfolio transactions or taking other actions in respect of an investment on behalf","page_number":130,"box":{"x":70,"y":460,"width":827,"height":12}},{"id":"f761490d-d541-4cc5-b9a3-8806dabd7c8f","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":130,"box":{"x":69,"y":475,"width":830,"height":12}},{"id":"cf061615-4b42-499d-8ec3-720cc6a6918e","block_type":"box","text":"the investment. Similar situations could arise if personnel of BlackRock serve as directors of companies the","page_number":130,"box":{"x":68,"y":491,"width":773,"height":11}},{"id":"68057dbf-b7a8-4bb3-be4a-8c19636da3a4","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":130,"box":{"x":69,"y":506,"width":832,"height":11}},{"id":"321acb3d-29c9-416d-9a33-2f1696bf3c47","block_type":"box","text":"with BlackRock’s policies and procedures (including the necessary implementation of appropriate information","page_number":130,"box":{"x":68,"y":521,"width":781,"height":11}},{"id":"17bbbabd-abbb-4e13-a48c-1b2cb9633a4b","block_type":"box","text":"barriers), the Funds may purchase securities or instruments that are issued by such companies, are the subject of","page_number":130,"box":{"x":69,"y":536,"width":819,"height":11}},{"id":"91c3dcf6-c7ec-4ae6-8f40-7aac4db40fb9","block_type":"box","text":"an advisory or risk management assignment by BlackRock, or where personnel of BlackRock are directors or officers","page_number":130,"box":{"x":69,"y":551,"width":832,"height":11}},{"id":"fd9ad0a4-3373-4920-a4ca-4429172584c5","block_type":"box","text":"of the issuer.","page_number":130,"box":{"x":69,"y":566,"width":92,"height":9}},{"id":"e29618cb-02cc-461c-adc4-69fb82a5550d","block_type":"box","text":"BlackRock has adopted and implemented policies and procedures that are designed to address potential","page_number":130,"box":{"x":102,"y":589,"width":748,"height":11}},{"id":"b61082dc-1dba-4f91-861a-2e9c5f1ed27a","block_type":"box","text":"conflicts that arise in connection with the advisory services BlackRock provides to Funds and other clients. Cer tain","page_number":130,"box":{"x":69,"y":604,"width":819,"height":11}},{"id":"74f96fd0-d6cf-4a1d-a937-788dd068d97c","block_type":"box","text":"BlackRock advisory personnel may take views, and make decisions or recommendations, that are different than or","page_number":130,"box":{"x":70,"y":619,"width":817,"height":11}},{"id":"dac2e831-e1d6-4e61-9840-7215e031e628","block_type":"box","text":"opposite those of other BlackRock advisory personnel. Cer tain por tfolio management teams within BlackRock may","page_number":130,"box":{"x":69,"y":634,"width":818,"height":12}},{"id":"1df7987c-f132-4a1b-9410-bceae006cd8b","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":130,"box":{"x":69,"y":649,"width":827,"height":12}},{"id":"97a8e723-3d7f-4e23-a9e3-8ed0b180ecc0","block_type":"box","text":"or adverse to the decisions made or the actions taken (or not taken) by the Funds’ por tfolio management teams. The","page_number":130,"box":{"x":69,"y":664,"width":835,"height":12}},{"id":"6a009ba5-5f5d-4aa5-a9f6-caf12b750796","block_type":"box","text":"various por tfolio management teams may not share information with each other, including as a result of cer tain","page_number":130,"box":{"x":68,"y":680,"width":797,"height":11}},{"id":"e54a4bdf-409a-4cff-ac30-a0dffe6a3e8d","block_type":"box","text":"information barriers and other policies, and will not have any obligation or other duty to do so.","page_number":130,"box":{"x":70,"y":695,"width":667,"height":11}},{"id":"68aa2dc0-a6b0-426d-b6f3-854fe7df60ad","block_type":"box","text":"BlackRock has established cer tain information barriers and other policies to address the sharing of information","page_number":130,"box":{"x":102,"y":717,"width":794,"height":12}},{"id":"29c061f4-9118-411f-9eed-32f622352fc4","block_type":"box","text":"between different businesses within BlackRock, including with respect to personnel responsible with managing","page_number":130,"box":{"x":69,"y":732,"width":791,"height":12}},{"id":"34e297bc-c5a7-4058-ade2-b008c12664a1","block_type":"box","text":"por tfolios and voting proxies with respect to cer tain index equity por tfolios versus those responsible for managing","page_number":130,"box":{"x":70,"y":748,"width":812,"height":11}},{"id":"586ab52f-34da-4bb1-a2f2-d739ddf4af74","block_type":"box","text":"por tfolios and voting proxies with respect to all other por tfolios. As a result of information barriers, cer tain units of","page_number":130,"box":{"x":70,"y":763,"width":818,"height":11}},{"id":"988af498-294b-4420-8bce-8c6b83ac829d","block_type":"box","text":"BlackRock generally will not have access, or will have limited access, to cer tain information and personnel, including","page_number":130,"box":{"x":70,"y":778,"width":830,"height":11}},{"id":"2bfd8f39-8450-4edc-a98b-675b951eb717","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":130,"box":{"x":69,"y":793,"width":835,"height":11}},{"id":"248a3b12-2d83-4906-b2ae-fabbf934c4eb","block_type":"box","text":"possessed by such other units. Therefore, BlackRock may not be able to review potential investments for the Funds","page_number":130,"box":{"x":70,"y":808,"width":824,"height":11}},{"id":"92fc1ebf-78e6-4b15-ad81-b9c46acd2499","block_type":"box","text":"with the benefit of information held by cer tain areas of BlackRock.","page_number":130,"box":{"x":68,"y":823,"width":472,"height":11}},{"id":"622831a6-1f28-4b3a-9727-517ae82d111a","block_type":"box","text":"BlackRock may determine to move cer tain personnel, businesses, or business units from one side of an","page_number":130,"box":{"x":102,"y":846,"width":744,"height":11}},{"id":"c5e4871a-cd71-47a6-95df-4d1fb06079fd","block_type":"box","text":"information barrier to the other side of the information barrier. In connection therewith, BlackRock personnel,","page_number":130,"box":{"x":70,"y":861,"width":775,"height":11}},{"id":"98c4ac8d-4ea3-4d44-9cda-1936a388da28","block_type":"box","text":"businesses, and business units that were moved will no longer have access to the information and personnel from","page_number":130,"box":{"x":69,"y":876,"width":818,"height":11}},{"id":"249fc120-f7fa-4a3a-8377-094d5574120e","block_type":"box","text":"the side of the information barrier from which they were moved. Information obtained in connection with such","page_number":130,"box":{"x":68,"y":891,"width":779,"height":11}},{"id":"d244145e-1d62-4d1f-bedc-5b6bc17a3af7","block_type":"box","text":"changes to information barriers may limit or restrict the ability of BlackRock to engage in or otherwise effect","page_number":130,"box":{"x":69,"y":906,"width":771,"height":12}},{"id":"ed2ee68e-64c4-4703-9f15-23b6cad484a0","block_type":"box","text":"II-95","page_number":130,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"8aca994b-adaf-4717-b544-c1313cd449eb","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":130,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"39601585-9e2b-4c67-9525-904a20cdf89b","block_type":"box","text":"transactions on behalf of the Funds (including purchasing or selling securities that BlackRock may otherwise have","page_number":131,"box":{"x":68,"y":45,"width":812,"height":11}},{"id":"4cfddd70-5938-46ea-bed3-5a0e734b2b0b","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":131,"box":{"x":70,"y":60,"width":803,"height":11}},{"id":"5f6002d8-ee60-4ee0-ac71-dd85a32f5be5","block_type":"box","text":"have their intended impact due to, for example, changes in applicable law or inadver tent crossings of the barriers,","page_number":131,"box":{"x":69,"y":75,"width":813,"height":11}},{"id":"d6f7e909-047d-408e-8092-a7a0d8c5d3a8","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":131,"box":{"x":69,"y":90,"width":829,"height":11}},{"id":"004e8b14-77c0-4d89-964e-ffc4c4f3e229","block_type":"box","text":"a barrier.","page_number":131,"box":{"x":69,"y":105,"width":62,"height":9}},{"id":"6fc2d2bc-4229-482e-89c6-707a6e33de03","block_type":"box","text":"Although the information barriers are intended to allow for independent por tfolio management decision-making","page_number":131,"box":{"x":101,"y":128,"width":788,"height":11}},{"id":"cce537b8-6a16-4298-b868-c1a1f7b868da","block_type":"box","text":"and proxy voting among cer tain BlackRock businesses, the investment activities of BlackRock for BlackRock clients,","page_number":131,"box":{"x":69,"y":143,"width":827,"height":11}},{"id":"5311cc52-5d0c-47ce-ba24-aba52d2cd407","block_type":"box","text":"as well as BlackRock’s proprietary accounts, may nonetheless limit the investment strategies and rights of other","page_number":131,"box":{"x":69,"y":158,"width":805,"height":11}},{"id":"d6eced77-2083-45d9-9ea2-6d601691af8e","block_type":"box","text":"clients (including the Fund). As BlackRock’s assets under management increases, BlackRock clients may face greater","page_number":131,"box":{"x":69,"y":173,"width":840,"height":11}},{"id":"601496c1-b843-4061-a814-a2dd21cc1595","block_type":"box","text":"negative impacts due to ownership restrictions and limitations imposed by laws, regulations, rules, regulators, or","page_number":131,"box":{"x":69,"y":188,"width":806,"height":12}},{"id":"e9fb4637-206e-4b6e-97e7-65e7ece942ae","block_type":"box","text":"issuers. For example, in cer tain circumstances where a BlackRock client invests in securities issued by companies","page_number":131,"box":{"x":70,"y":204,"width":818,"height":11}},{"id":"81fc674a-c6a8-4a2d-8665-10338ad0518e","block_type":"box","text":"that operate in cer tain industries (","page_number":131,"box":{"x":68,"y":219,"width":244,"height":11}},{"id":"c400beb9-873f-4213-9efb-ab769cee7779","block_type":"box","text":"e.g.","page_number":131,"box":{"x":314,"y":220,"width":25,"height":10}},{"id":"5d0fdb3f-bf8d-41ad-999f-c557c4471628","block_type":"box","text":", banking, insurance, and utilities) or in cer tain emerging or international","page_number":131,"box":{"x":342,"y":219,"width":515,"height":11}},{"id":"160d6a1d-c840-44fc-b02a-76ade92a8d94","block_type":"box","text":"markets, or are subject to regulatory or corporate ownership restrictions (","page_number":131,"box":{"x":69,"y":234,"width":523,"height":11}},{"id":"11a28954-2d4b-42e9-9b24-b2e15039ed0b","block_type":"box","text":"e.g.","page_number":131,"box":{"x":594,"y":235,"width":25,"height":10}},{"id":"fe8f12d2-9c5b-4983-af0c-2251d4b8c793","block_type":"box","text":", with mechanisms such as poison pills","page_number":131,"box":{"x":621,"y":234,"width":280,"height":11}},{"id":"8669c2ee-3952-47b6-a358-f55e3ea04bc4","block_type":"box","text":"in place to prevent takeovers), or where a BlackRock client invests in cer tain futures and derivatives, there may be","page_number":131,"box":{"x":70,"y":249,"width":816,"height":11}},{"id":"821f2f43-5731-4c9e-beb4-5be6248ab6c6","block_type":"box","text":"limits on the aggregate amount invested by BlackRock for its clients and BlackRock’s proprietary accounts that may","page_number":131,"box":{"x":70,"y":264,"width":825,"height":11}},{"id":"56781eaf-cf57-48c8-a331-05f73d5be148","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":131,"box":{"x":69,"y":279,"width":837,"height":11}},{"id":"d589c490-f6ac-49a4-97a1-bde445d8a181","block_type":"box","text":"or non-disapproval or, if exceeded, may cause BlackRock or its clients to be subject to enforcement actions,","page_number":131,"box":{"x":69,"y":294,"width":769,"height":11}},{"id":"35cf3ef1-2fc8-4171-8945-573050e8291a","block_type":"box","text":"disgorgement of share ownership or profits, regulatory restrictions, complex compliance repor ting, increased","page_number":131,"box":{"x":69,"y":309,"width":775,"height":11}},{"id":"5f91f89b-8610-4e0f-9d1a-9370d9e99258","block_type":"box","text":"compliance costs or suffer disadvantages or business restrictions. In light of cer tain restrictions, BlackRock may also","page_number":131,"box":{"x":69,"y":324,"width":839,"height":12}},{"id":"686c4787-93d4-4ca7-a265-58be8a027f06","block_type":"box","text":"seek to make indirect investments (","page_number":131,"box":{"x":69,"y":340,"width":255,"height":10}},{"id":"89636638-7358-4c15-bcb4-3a3eb8020df5","block_type":"box","text":"e.g.","page_number":131,"box":{"x":326,"y":341,"width":24,"height":10}},{"id":"dfa7e175-d1ae-41ee-ada5-b48702c79815","block_type":"box","text":", using derivatives) on behalf of its clients to receive exposure to cer tain","page_number":131,"box":{"x":353,"y":339,"width":514,"height":12}},{"id":"640a30aa-b606-422d-88bc-c8b6d65760e1","block_type":"box","text":"securities in excess of the applicable ownership restrictions and limitations when legally permitted that will expose","page_number":131,"box":{"x":69,"y":355,"width":817,"height":11}},{"id":"80c11642-3e72-4026-b9fc-e31cc1ee5049","block_type":"box","text":"such clients to additional costs and additional risks, including any risks associated with investing in derivatives.","page_number":131,"box":{"x":69,"y":370,"width":795,"height":11}},{"id":"d605e7ca-b12c-450f-8c27-5c03b7bdcaf0","block_type":"box","text":"There may be limited availability of derivatives that provide indirect exposure to an impacted security. BlackRock","page_number":131,"box":{"x":68,"y":385,"width":799,"height":11}},{"id":"3ee09428-fdbc-4f87-ab19-21699b23c0e2","block_type":"box","text":"clients can be subject to more than one ownership limitation depending on each client’s holdings, and each","page_number":131,"box":{"x":69,"y":400,"width":767,"height":11}},{"id":"4564f7f1-6208-4cb8-b14c-924be99bf096","block_type":"box","text":"ownership limitation can impact multiple securities held by the client. Cer tain clients or shareholders may have their","page_number":131,"box":{"x":69,"y":415,"width":829,"height":11}},{"id":"47c027b0-a5fc-4e6e-bc0f-e43c288f4110","block_type":"box","text":"own overlapping obligations to monitor their compliance with ownership limitations across their investments.","page_number":131,"box":{"x":69,"y":430,"width":772,"height":11}},{"id":"43d880bd-89ef-4ce4-b44d-efe381fbf6d4","block_type":"box","text":"If cer tain aggregate ownership thresholds are reached either through the actions of BlackRock or a BlackRock","page_number":131,"box":{"x":102,"y":453,"width":783,"height":11}},{"id":"49b3dbac-623f-4503-8f5f-04afa693dd04","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":131,"box":{"x":69,"y":468,"width":808,"height":11}},{"id":"a1c5c9b6-0ab2-4025-8224-9ed8fb25b6da","block_type":"box","text":"dispose of investments, or exercise rights (including voting) or under take business transactions, may be restricted by","page_number":131,"box":{"x":69,"y":483,"width":837,"height":11}},{"id":"659443c4-0dcb-4e68-8675-012ad172fb6a","block_type":"box","text":"law, regulation, rule, or organizational documents or otherwise impaired. For example, to meet the requirements of","page_number":131,"box":{"x":70,"y":498,"width":818,"height":11}},{"id":"f9977e79-a040-4b79-b494-30f7bd18d7fe","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":131,"box":{"x":69,"y":514,"width":821,"height":10}},{"id":"35778c0d-ca52-47ad-8d95-2b0fd6cd72f5","block_type":"box","text":"otherwise purchase or hold. The limitation or restriction may be based on the holdings of other BlackRock clients","page_number":131,"box":{"x":69,"y":528,"width":806,"height":12}},{"id":"ac6e6111-b383-44a0-9f96-77de36282068","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":131,"box":{"x":70,"y":543,"width":839,"height":12}},{"id":"acb28fb4-85f6-4ec2-bce0-b43b72a839be","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":131,"box":{"x":69,"y":559,"width":826,"height":11}},{"id":"1ccedb15-9670-4dea-ace5-1710c3e72b82","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":131,"box":{"x":69,"y":574,"width":807,"height":11}},{"id":"86cd1777-10e8-4ab9-9900-efc0e384436a","block_type":"box","text":"existing investments, utilize indirect investments, utilize information barriers, or otherwise restrict, forgo, or limit the","page_number":131,"box":{"x":69,"y":589,"width":830,"height":11}},{"id":"1a75e202-35f2-430e-81c5-f2f21f7c63d2","block_type":"box","text":"exercise of rights (including transferring, outsourcing, or limiting voting rights or forgoing the right to receive","page_number":131,"box":{"x":69,"y":604,"width":765,"height":11}},{"id":"3bcbae93-5c32-4912-8e20-8c9d54ac3323","block_type":"box","text":"dividends) when BlackRock, in its sole discretion, deems it appropriate in light of potential regulatory or other","page_number":131,"box":{"x":69,"y":619,"width":781,"height":11}},{"id":"a8fa8706-ff04-4013-b90a-7d119ecb505e","block_type":"box","text":"restrictions on ownership or other consequences resulting from reaching investment thresholds. These types of","page_number":131,"box":{"x":69,"y":634,"width":796,"height":12}},{"id":"ae68d8aa-65de-47f0-a06b-89eabd2a5e0c","block_type":"box","text":"restrictions could negatively impact a client’s per formance or ability to meet its investment objective.","page_number":131,"box":{"x":69,"y":649,"width":720,"height":12}},{"id":"42864a78-edef-4fba-9f51-91b7b67619f6","block_type":"box","text":"When BlackRock or a BlackRock client is subject to an ownership limitation, BlackRock may in its discretion seek","page_number":131,"box":{"x":101,"y":672,"width":807,"height":11}},{"id":"962776ca-c4de-428b-a6ca-58578f92b35c","block_type":"box","text":"permission from the applicable issuers or regulators to exceed the limitation. However, there is no guarantee that","page_number":131,"box":{"x":70,"y":687,"width":810,"height":11}},{"id":"6d3b6a71-52c4-4711-aaaa-a15dd2bed171","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":131,"box":{"x":70,"y":702,"width":829,"height":12}},{"id":"ed619c15-ec15-4687-b6ab-79800799bc23","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":131,"box":{"x":69,"y":717,"width":824,"height":12}},{"id":"4b13a283-24b2-43f6-b22b-dfd40330afbe","block_type":"box","text":"from taking cer tain actions in connection with the approval, order, consent, relief or non-disapproval, which BlackRock","page_number":131,"box":{"x":68,"y":732,"width":841,"height":12}},{"id":"4c12d753-05b2-43e5-a071-536b746b7a52","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":131,"box":{"x":69,"y":748,"width":770,"height":11}},{"id":"f5ce6463-a2d6-4e68-8572-4b7b7b230ee1","block_type":"box","text":"otherwise would take. In those circumstances where ownership thresholds or limitations must be observed,","page_number":131,"box":{"x":69,"y":763,"width":769,"height":11}},{"id":"229c2c73-bb28-448c-882f-bff399f86dfb","block_type":"box","text":"BlackRock seeks to allocate limited investment oppor tunities equitably among clients, taking into consideration","page_number":131,"box":{"x":70,"y":778,"width":794,"height":11}},{"id":"a86d022b-9ceb-40cc-ac2d-bd7d944b130a","block_type":"box","text":"benchmark weight and investment strategy. BlackRock may adopt cer tain controls designed to prevent the","page_number":131,"box":{"x":69,"y":793,"width":757,"height":11}},{"id":"8932ff5f-95b0-44af-872e-9a11caced5ef","block_type":"box","text":"occurrence of a breach of any applicable ownership threshold or limits, including, for example, when ownership in","page_number":131,"box":{"x":69,"y":808,"width":807,"height":11}},{"id":"70b24600-7d42-4ead-b3b9-67c8b7663efb","block_type":"box","text":"cer tain securities nears an applicable threshold, BlackRock may limit additional purchases in such securities or, with","page_number":131,"box":{"x":69,"y":823,"width":833,"height":11}},{"id":"1ae72eb5-2858-4d1d-81b9-97cafd836d8b","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":131,"box":{"x":69,"y":838,"width":827,"height":11}},{"id":"e0163e0e-db2e-4b3f-8215-e239336faa96","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":131,"box":{"x":68,"y":853,"width":803,"height":12}},{"id":"25c53702-a5a8-4ad4-870f-5a144dab10ff","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":131,"box":{"x":70,"y":869,"width":802,"height":11}},{"id":"cf784e6f-a91d-43b7-bf81-a76c4443b913","block_type":"box","text":"reduce these positions to meet the applicable limitations and BlackRock or such client may be subject to regulatory","page_number":131,"box":{"x":69,"y":884,"width":826,"height":11}},{"id":"5592c4a9-e482-44fd-be40-74dc49671881","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":131,"box":{"x":69,"y":899,"width":834,"height":11}},{"id":"2773d7da-e29d-4bc0-9d86-3283735fde3b","block_type":"box","text":"II-96","page_number":131,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"d0e63539-e3c2-4ff3-9b98-45d4bb04defb","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":131,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"866aa15d-2c09-4e28-922c-22a5af5fd2eb","block_type":"box","text":"Ownership limitations are highly complex. It is possible that, despite BlackRock’s intent to either comply with or","page_number":132,"box":{"x":102,"y":45,"width":795,"height":11}},{"id":"0c51be13-8586-4ce9-96c0-14761d7298d8","block_type":"box","text":"be granted permission to exceed ownership limitations, it may inadver tently breach a limit or violate the corporate or","page_number":132,"box":{"x":69,"y":60,"width":831,"height":11}},{"id":"1293d888-5a17-4a89-872e-f517ff48ca34","block_type":"box","text":"regulatory approval, order, consent, relief or non-disapproval that was obtained.","page_number":132,"box":{"x":69,"y":75,"width":566,"height":11}},{"id":"b2fbe4d6-9005-461f-b9af-649718bdb769","block_type":"box","text":"In addition to the foregoing, other ownership thresholds may trigger repor ting requirements to governmental and","page_number":132,"box":{"x":102,"y":98,"width":798,"height":11}},{"id":"76252565-2b49-48ff-8acf-8a6532585ea9","block_type":"box","text":"regulatory authorities, and such repor ts may entail the disclosure of the identity of a client or BlackRock’s intended","page_number":132,"box":{"x":69,"y":113,"width":823,"height":11}},{"id":"528eadd0-d50c-4e7d-8333-50e24c84e662","block_type":"box","text":"strategy with respect to such security or asset.","page_number":132,"box":{"x":69,"y":128,"width":333,"height":11}},{"id":"4b5e20f8-365d-4942-a684-616b9bf70a06","block_type":"box","text":"BlackRock may maintain securities indices. To the extent permitted by applicable laws, the Funds may seek to","page_number":132,"box":{"x":102,"y":151,"width":785,"height":11}},{"id":"38cc0e8f-b72a-496d-bd1e-edae1bb5f173","block_type":"box","text":"license and use such indices as par t of their investment strategy. Index based funds that seek to track the","page_number":132,"box":{"x":70,"y":166,"width":760,"height":11}},{"id":"97d5b11b-bc45-41a0-ab3d-e7b37e24b78e","block_type":"box","text":"per formance of securities indices also may use the name of the index or index provider in the fund name. Index","page_number":132,"box":{"x":70,"y":181,"width":796,"height":11}},{"id":"fb759e84-4926-476d-805a-d8d7cf22070a","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":132,"box":{"x":70,"y":196,"width":830,"height":11}},{"id":"34d33b80-2dbb-4033-a2a6-f6be781ba08c","block_type":"box","text":"index or index name. In instances where BlackRock charges a unitary management fee, BlackRock may have a","page_number":132,"box":{"x":70,"y":211,"width":788,"height":11}},{"id":"54c04bf4-c139-4af0-8dbd-2b8d383bc3fa","block_type":"box","text":"financial incentive to use a BlackRock index that is less costly to BlackRock than a third par ty index. BlackRock may","page_number":132,"box":{"x":68,"y":226,"width":829,"height":11}},{"id":"672adc7d-31a7-4ed9-8ea5-99a9a5c45281","block_type":"box","text":"benefit from the Funds using BlackRock indices by creating increasing acceptance in the marketplace for such","page_number":132,"box":{"x":69,"y":241,"width":784,"height":11}},{"id":"aa3a2300-ece9-47ab-8fff-5522ba08654e","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":132,"box":{"x":70,"y":257,"width":797,"height":11}},{"id":"39c12adc-37bb-415a-9bf5-689e95698cbd","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":132,"box":{"x":70,"y":271,"width":837,"height":12}},{"id":"00b217c0-4db4-4d48-b778-714d80f6fbe5","block_type":"box","text":"index licensing agreement with BlackRock will be as favorable as those terms offered to other licensees.","page_number":132,"box":{"x":70,"y":286,"width":746,"height":12}},{"id":"63d6ab0f-e19c-4456-b4f4-745a1cc62359","block_type":"box","text":"BlackRock may enter into contractual arrangements with third-par ty service providers to a Fund (","page_number":132,"box":{"x":102,"y":309,"width":686,"height":11}},{"id":"31b7154d-35f3-4d84-8c2e-11bd3f081ac2","block_type":"box","text":"e.g.","page_number":132,"box":{"x":790,"y":311,"width":25,"height":9}},{"id":"768a753e-4d70-4b57-a82c-07b807f630bd","block_type":"box","text":", custodians,","page_number":132,"box":{"x":817,"y":309,"width":90,"height":11}},{"id":"9864db5f-5320-4346-a039-023678aaec4d","block_type":"box","text":"administrators and index providers) pursuant to which BlackRock receives fee discounts or concessions in","page_number":132,"box":{"x":69,"y":324,"width":756,"height":11}},{"id":"155d5c8e-1aff-455b-965d-ee3c57b92e7d","block_type":"box","text":"recognition of BlackRock’s overall relationship with such service providers. BlackRock may also enter into contractual","page_number":132,"box":{"x":69,"y":339,"width":836,"height":12}},{"id":"251af088-8ffb-4484-8394-96a6f8908109","block_type":"box","text":"arrangements with such service providers pursuant to which BlackRock incurs additional costs if the service","page_number":132,"box":{"x":69,"y":355,"width":772,"height":11}},{"id":"61e51ff6-848d-49f2-bafa-c9e37da45165","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":132,"box":{"x":70,"y":370,"width":800,"height":11}},{"id":"e731c7ac-25cb-4d27-b233-a10e3f0a6f7f","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":132,"box":{"x":69,"y":385,"width":771,"height":11}},{"id":"091fe012-f340-40fe-bc26-5282308b35df","block_type":"box","text":"discounts or concessions, or any additional savings, may accrue, in whole or in par t, to BlackRock, which could result","page_number":132,"box":{"x":69,"y":400,"width":839,"height":11}},{"id":"5f557674-d841-4fe0-ad54-6cec08913986","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":132,"box":{"x":70,"y":415,"width":785,"height":11}},{"id":"705a9d34-dfeb-4638-9cc1-922fe90bbeb1","block_type":"box","text":"interest may arise with respect to contractual arrangements with third-par ty service providers to a Fund, or the","page_number":132,"box":{"x":70,"y":430,"width":786,"height":11}},{"id":"8668225f-23df-4330-ac23-125559ad6154","block_type":"box","text":"selection of such providers, par ticularly in circumstances where BlackRock is negotiating on behalf of both funds that","page_number":132,"box":{"x":69,"y":445,"width":837,"height":12}},{"id":"9d15c8fa-026f-4ef5-947d-55641d29ac9a","block_type":"box","text":"have a unitary management fee and those that do not or different service providers have different fee structures.","page_number":132,"box":{"x":69,"y":460,"width":809,"height":12}},{"id":"b0ba25fa-d39a-466c-b4d5-d1c175daa09b","block_type":"box","text":"Conflicts of interest may arise as a result of simultaneous investment management of multiple client accounts","page_number":132,"box":{"x":102,"y":483,"width":788,"height":11}},{"id":"fc5e8e74-390e-42f1-9952-be7ffd9a3444","block_type":"box","text":"by BlackRock’s investment professionals. For example, differences in the advisory fee structure may create the","page_number":132,"box":{"x":69,"y":498,"width":795,"height":11}},{"id":"c476712f-8289-45fe-a28e-f9a493859032","block_type":"box","text":"appearance of actual or potential conflicts of interest because such differences could create pecuniary incentives for","page_number":132,"box":{"x":69,"y":513,"width":835,"height":11}},{"id":"15fca853-6150-4c58-8792-ca0cb8efc79c","block_type":"box","text":"BlackRock to favor one client account over another.","page_number":132,"box":{"x":70,"y":528,"width":363,"height":9}},{"id":"67b5030f-2636-472b-afce-537be69a54c1","block_type":"box","text":"BlackRock owns or has an ownership interest in cer tain trading, por tfolio management, operations and/or","page_number":132,"box":{"x":102,"y":551,"width":757,"height":11}},{"id":"74e9ba2d-6c27-47db-bd3f-89804187da4f","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":132,"box":{"x":70,"y":566,"width":826,"height":11}},{"id":"7adafad0-e415-4d1c-919d-f8ec5f1ff1f6","block_type":"box","text":"in connection with the provision of services to accounts managed by BlackRock and funds managed and sponsored","page_number":132,"box":{"x":70,"y":581,"width":822,"height":12}},{"id":"5cc3bee7-64e5-46d1-9b01-0b0821a8e566","block_type":"box","text":"by BlackRock, including the Funds, that engage the service provider (typically the custodian). A Fund’s service","page_number":132,"box":{"x":69,"y":597,"width":782,"height":11}},{"id":"90a839ae-9ac7-40d5-8630-81404791e02a","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":132,"box":{"x":70,"y":612,"width":835,"height":11}},{"id":"3e349185-2999-4db7-93bf-8ff328658893","block_type":"box","text":"use of these systems may enhance the profitability of BlackRock.","page_number":132,"box":{"x":69,"y":627,"width":465,"height":11}},{"id":"ddcbe095-8b2a-4099-aa1f-2a716ae5a5fd","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":132,"box":{"x":102,"y":649,"width":804,"height":12}},{"id":"aae4c277-e903-44a2-b019-a0a95c07b604","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":132,"box":{"x":69,"y":664,"width":840,"height":12}},{"id":"200e0697-7e02-4ab7-a8ff-027e518ee253","block_type":"box","text":"provider.","page_number":132,"box":{"x":70,"y":680,"width":58,"height":11}},{"id":"aa580b8b-1d7f-4464-910a-7c5bc30330bf","block_type":"box","text":"In recognition of a BlackRock client’s overall relationship with BlackRock, BlackRock may offer special pricing","page_number":132,"box":{"x":102,"y":702,"width":778,"height":12}},{"id":"dfd30082-4352-46f5-8833-7b7fb7c6800a","block_type":"box","text":"arrangements for cer tain services provided by BlackRock. Any such special pricing arrangements will not affect Fund","page_number":132,"box":{"x":69,"y":717,"width":831,"height":12}},{"id":"cb235b06-4e62-4740-9e6b-22e0e04b796a","block_type":"box","text":"fees and expenses applicable to such client’s investment in a Fund.","page_number":132,"box":{"x":68,"y":732,"width":485,"height":11}},{"id":"50b56a85-4de6-44e0-abef-da9c4d5c3193","block_type":"box","text":"Present and future activities of BlackRock and its directors, officers and employees, in addition to those","page_number":132,"box":{"x":102,"y":755,"width":742,"height":11}},{"id":"64014254-da29-44cc-be3d-e491f25ddc4e","block_type":"box","text":"described in this section, may give rise to additional conflicts of interest.","page_number":132,"box":{"x":69,"y":770,"width":517,"height":12}},{"id":"40daeb43-ae98-4ab0-819b-4755b4d0b44a","block_type":"box","text":"PURCHASE OF SHARES","page_number":132,"box":{"x":395,"y":800,"width":188,"height":10}},{"id":"8630fcb6-14a3-47e7-a7c1-c001d8c78365","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":132,"box":{"x":102,"y":823,"width":800,"height":11}},{"id":"a2430fc0-d5ec-4a5e-af10-e386e5447302","block_type":"box","text":"under the Investment Company Act. Investor A Shares are sold to investors choosing the initial sales charge","page_number":132,"box":{"x":69,"y":838,"width":771,"height":11}},{"id":"5b11213f-a2c3-4f08-ac83-033eb23592b1","block_type":"box","text":"alternative, except that Investor A Shares of Index Funds (defined below) and BlackRock Shor t Obligations Fund are","page_number":132,"box":{"x":69,"y":853,"width":822,"height":11}},{"id":"d45d410a-2c52-46ca-868e-3980f9aafd05","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":132,"box":{"x":68,"y":868,"width":809,"height":11}},{"id":"18b97b08-dd58-472a-9083-0152b9bb7de2","block_type":"box","text":"sales charge alternative. Investor P Shares are available only to cer tain investors purchasing shares of Funds","page_number":132,"box":{"x":69,"y":883,"width":781,"height":11}},{"id":"3db51b97-e442-42c0-ab99-142e996a6a89","block_type":"box","text":"through registered representatives of an insurance company’s broker-dealer that has entered into an agreement with","page_number":132,"box":{"x":68,"y":898,"width":833,"height":11}},{"id":"27fcbf76-6153-4874-82ab-65938be17500","block_type":"box","text":"II-97","page_number":132,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"21cc883a-a3fb-4352-a356-d2e677b6fbd2","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":132,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f887bd57-d890-40b0-ae12-45bd7c4b3d83","block_type":"box","text":"the Distributor to offer such shares. Institutional Shares are sold to cer tain eligible investors without a sales charge.","page_number":133,"box":{"x":68,"y":45,"width":833,"height":11}},{"id":"35ac564b-75c7-4220-aace-ac41da0f367f","block_type":"box","text":"Cer tain Funds offer Class R Shares, which are available only to cer tain employer-sponsored retirement plans and are","page_number":133,"box":{"x":69,"y":60,"width":835,"height":11}},{"id":"618c4f7e-e2c8-4f9e-971a-d3c137fc18f0","block_type":"box","text":"sold without a sales charge. Cer tain Funds offer Class G Shares, which are available only to investors on eligible","page_number":133,"box":{"x":69,"y":75,"width":804,"height":11}},{"id":"b62f59ae-9854-4a94-9403-540b16b40660","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":133,"box":{"x":70,"y":90,"width":816,"height":11}},{"id":"52f14845-b46f-4575-8ac4-956653cb6474","block_type":"box","text":"financial intermediary that meets an initial investment minimum of $2 billion. In addition, cer tain Funds offer Service","page_number":133,"box":{"x":68,"y":104,"width":835,"height":12}},{"id":"06df2e8f-9673-4050-8fd7-f3207436907b","block_type":"box","text":"Shares, BlackRock Shares and/or Class K Shares that are available only to cer tain eligible investors. Please see the","page_number":133,"box":{"x":69,"y":120,"width":834,"height":12}},{"id":"ca36e209-5d56-4509-b00e-e48bf96378fc","block_type":"box","text":"appropriate Prospectus for your Fund to determine which classes are offered by your Fund and under what","page_number":133,"box":{"x":69,"y":135,"width":757,"height":11}},{"id":"e8e32ba6-f29b-43af-9d76-97ad5a8bbb4e","block_type":"box","text":"circumstances. Each class has different exchange privileges. See “Shareholder Services — Exchange Privilege.”","page_number":133,"box":{"x":69,"y":150,"width":802,"height":12}},{"id":"9936de03-8740-4a48-8892-962df4d40fc9","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":133,"box":{"x":101,"y":173,"width":799,"height":11}},{"id":"70d49fa2-2c40-40bf-8030-3c1c2f5a526b","block_type":"box","text":"the purchase order by a dealer or other financial intermediary (“Selling Dealer”) that has been authorized by the","page_number":133,"box":{"x":68,"y":188,"width":798,"height":12}},{"id":"726b3361-c41a-4803-b154-d1b8d09aa687","block_type":"box","text":"Distributor by contract to accept such orders. In addition, with respect to the affiliated underlying funds in which","page_number":133,"box":{"x":70,"y":203,"width":795,"height":12}},{"id":"c01ed73c-1d31-43d3-b526-244383392ef1","block_type":"box","text":"target date funds advised by BlackRock or its affiliates (“BlackRock Target Date Funds”) invest, the applicable","page_number":133,"box":{"x":68,"y":218,"width":786,"height":12}},{"id":"199cc743-ee0a-4734-8f74-2ff4c34c438c","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":133,"box":{"x":69,"y":234,"width":839,"height":11}},{"id":"d7e7fbd6-2b57-4116-a8bd-6abbdcf14609","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":133,"box":{"x":69,"y":249,"width":795,"height":11}},{"id":"4a7d3c14-c813-4f04-bdff-9b761055f452","block_type":"box","text":"Target Date Funds that allocate a por tion of such purchase order to such affiliated underlying fund. As to purchase","page_number":133,"box":{"x":68,"y":264,"width":819,"height":11}},{"id":"69da58bd-8d79-4c16-a1d0-622b7cddc4e6","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":133,"box":{"x":69,"y":279,"width":808,"height":11}},{"id":"d1e9bfaa-9c69-44da-9f1f-e6fb8ad0b4dd","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":133,"box":{"x":69,"y":294,"width":803,"height":11}},{"id":"527e8596-91e2-457b-89e3-d476f884cb73","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":133,"box":{"x":70,"y":309,"width":812,"height":11}},{"id":"07a9fc5c-9970-4ae4-bf84-e58f01b44601","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":133,"box":{"x":68,"y":324,"width":828,"height":11}},{"id":"2a4b6158-5deb-4c6b-96ca-2164719277a9","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":133,"box":{"x":68,"y":339,"width":788,"height":12}},{"id":"f32366a5-3fc7-4822-9213-63c97c72020f","block_type":"box","text":"deemed received on the next business day. It is the responsibility of brokers to transmit purchase orders and","page_number":133,"box":{"x":69,"y":355,"width":779,"height":11}},{"id":"7ad000f9-d84c-4f42-a75a-d57b40df6a5f","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":133,"box":{"x":70,"y":370,"width":830,"height":11}},{"id":"6d5c08cb-3eb8-41d5-82f1-7bdbc983e50b","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":133,"box":{"x":69,"y":385,"width":828,"height":11}},{"id":"7afe9ad8-c387-4461-8e05-a3aa53e2a7ec","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":133,"box":{"x":68,"y":399,"width":762,"height":12}},{"id":"4241bb5e-dc63-44ae-ad08-e33e4ca68821","block_type":"box","text":"The minimum investment for the initial purchase of shares is set for th in the Prospectus for each Fund. The","page_number":133,"box":{"x":101,"y":423,"width":768,"height":11}},{"id":"cb0086bf-5229-47db-8841-4f05ebbd43e2","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":133,"box":{"x":69,"y":438,"width":819,"height":11}},{"id":"2a9081e4-93ac-43ef-adad-795db47c08ab","block_type":"box","text":"affiliates is $100, unless payment is made through a payroll deduction program in which case the minimum","page_number":133,"box":{"x":69,"y":452,"width":769,"height":12}},{"id":"95db8b0e-bbfb-489c-aaae-acd1971da772","block_type":"box","text":"investment is $25.","page_number":133,"box":{"x":70,"y":467,"width":132,"height":11}},{"id":"4d001a87-a081-43b9-882c-3fb407daa08a","block_type":"box","text":"Each Fund has lower investment minimums for other categories of shareholders eligible to purchase Institutional","page_number":133,"box":{"x":102,"y":491,"width":802,"height":11}},{"id":"eefb0487-4936-421d-b3a6-060b685855d9","block_type":"box","text":"Shares, including selected fee-based programs. Each Fund may permit a lower initial investment for cer tain investors","page_number":133,"box":{"x":69,"y":506,"width":833,"height":11}},{"id":"4c3b3023-392a-470a-8ea6-693c1d3cdcbe","block_type":"box","text":"if their purchase, combined with purchases by other investors received together by the Fund, meets the minimum","page_number":133,"box":{"x":70,"y":521,"width":806,"height":11}},{"id":"ddea7508-9625-4796-bff4-3cc3a408a4e8","block_type":"box","text":"investment requirement. Each Fund may reject any purchase order, modify or waive the minimum initial or","page_number":133,"box":{"x":70,"y":536,"width":751,"height":11}},{"id":"14dc1371-38ee-4584-9e43-8f9e0ceddb0b","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":133,"box":{"x":69,"y":551,"width":826,"height":11}},{"id":"26c1a32d-8f8e-4bab-ae27-92ca776e991c","block_type":"box","text":"Financial intermediaries may, in connection with a change in account type or otherwise in accordance with a","page_number":133,"box":{"x":102,"y":574,"width":768,"height":11}},{"id":"bd478bfc-92b2-4bf3-bf20-ea4b11c8af25","block_type":"box","text":"financial intermediary’s policies and procedures, exchange shares of a Fund from one class of shares to another","page_number":133,"box":{"x":68,"y":589,"width":807,"height":11}},{"id":"2bfca50e-91c4-4878-a50d-9cd6b0dbb46e","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":133,"box":{"x":69,"y":604,"width":836,"height":11}},{"id":"8fab36a7-6bfc-4fc7-b187-3a640fa832f5","block_type":"box","text":"charge (“CDSC”) and that shareholders meet eligibility requirements of the new share class. Please speak to your","page_number":133,"box":{"x":69,"y":619,"width":814,"height":11}},{"id":"2a14deed-e8ed-43b7-a8bf-786c3af34062","block_type":"box","text":"financial intermediary for information about specific policies and procedures applicable to your account.","page_number":133,"box":{"x":68,"y":634,"width":740,"height":11}},{"id":"db365aca-931a-4f5c-9496-397d171cb855","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":133,"box":{"x":102,"y":657,"width":795,"height":11}},{"id":"d3891106-5195-4640-ba49-a19bebb170d6","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":133,"box":{"x":70,"y":672,"width":813,"height":11}},{"id":"1784ea0c-18be-4adb-a092-aa4f2db815f9","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":133,"box":{"x":68,"y":687,"width":827,"height":11}},{"id":"3ec41bb0-6b35-4adc-98af-87f4b7c1eaf7","block_type":"box","text":"financial intermediaries are permitted to withhold placing orders to benefit themselves by a price change.","page_number":133,"box":{"x":68,"y":702,"width":750,"height":12}},{"id":"25f78faa-e6a1-480c-81a2-ffaf51311e4d","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":133,"box":{"x":101,"y":725,"width":776,"height":11}},{"id":"33e55fe6-f01f-470d-a38a-568c981646dd","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":133,"box":{"x":69,"y":740,"width":831,"height":11}},{"id":"9143d9cb-2b7c-429a-9960-6120b6c74a19","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":133,"box":{"x":69,"y":755,"width":822,"height":11}},{"id":"38a787ff-ca8f-43fa-9c80-330c2c823b07","block_type":"box","text":"single fiduciary account although more than one beneficiary may be involved. The term “purchase” also includes","page_number":133,"box":{"x":69,"y":770,"width":802,"height":12}},{"id":"941caea0-b219-432f-b614-11a8fb352cf1","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":133,"box":{"x":70,"y":785,"width":839,"height":12}},{"id":"23abc84d-38e4-4765-a7fc-77426389023f","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":133,"box":{"x":69,"y":801,"width":819,"height":11}},{"id":"12d6ef91-6d4f-414c-bcc9-7bd0e235065c","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":133,"box":{"x":68,"y":816,"width":827,"height":11}},{"id":"e5d537d1-042b-47dd-9bc0-f42b05ce7082","block_type":"box","text":"group of individuals whose sole organizational nexus is that its par ticipants are credit cardholders of a company,","page_number":133,"box":{"x":68,"y":831,"width":803,"height":11}},{"id":"799a0c92-0c69-456e-9e4e-a9ee62593819","block_type":"box","text":"policyholders of an insurance company, customers of either a bank or broker-dealer or clients of an investment","page_number":133,"box":{"x":70,"y":846,"width":788,"height":11}},{"id":"2ce8acda-e503-4ef5-87e7-08b9d49ff84b","block_type":"box","text":"adviser.","page_number":133,"box":{"x":69,"y":861,"width":53,"height":9}},{"id":"7907b82d-a4af-4a27-8607-1a6e6da90334","block_type":"box","text":"With cer tain limited exceptions, the Funds are generally available only to investors residing in the United States","page_number":133,"box":{"x":101,"y":884,"width":795,"height":11}},{"id":"ac0fae61-2d51-44c3-96b2-6eb555b4eb1e","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":133,"box":{"x":69,"y":899,"width":821,"height":11}},{"id":"a3676612-f851-4555-881b-c7fa3bb1f58e","block_type":"box","text":"II-98","page_number":133,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"7bb10478-d89c-4c3b-94e2-765964f2e262","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":133,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"71c190a6-2463-461b-b467-f882f4996d7c","block_type":"box","text":"additional investments (including by way of exchange from another Fund) into existing accounts, a Fund generally","page_number":134,"box":{"x":69,"y":45,"width":803,"height":11}},{"id":"a8b5246c-7634-497e-8e53-47f435cc044c","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":134,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"56dda77b-5a48-4be7-9a11-94516aabb002","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":134,"box":{"x":68,"y":75,"width":747,"height":11}},{"id":"828a2948-d45d-4a0b-a56b-448cd8db3256","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":134,"box":{"x":70,"y":90,"width":809,"height":11}},{"id":"179f864d-eb16-4250-9fec-ee0347a23b8a","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":134,"box":{"x":69,"y":105,"width":819,"height":11}},{"id":"4ece8d45-0a7a-4e6b-945c-52bae4461329","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":134,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"bee05a51-bd2a-41e5-9204-87f8ed92b0f6","block_type":"box","text":"also be restricted from making additional investments.","page_number":134,"box":{"x":69,"y":135,"width":388,"height":12}},{"id":"beee1e2a-7a3b-43de-a03d-86e8556fd3b2","block_type":"box","text":"In-Kind Purchases","page_number":134,"box":{"x":102,"y":158,"width":127,"height":9}},{"id":"df7d4b75-c50f-41c3-a40c-d2f01a97f9ce","block_type":"box","text":". Payment for shares of a Fund may, at the discretion of BlackRock, be made in the form of","page_number":134,"box":{"x":230,"y":158,"width":649,"height":11}},{"id":"03b9df63-bf0d-4ed7-bc86-ad48d5ad0012","block_type":"box","text":"securities that are permissible investments for the Fund and that meet the investment objective, policies and","page_number":134,"box":{"x":69,"y":173,"width":779,"height":11}},{"id":"498ef69d-6faa-40d1-b6e9-81a49b6066c2","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":134,"box":{"x":70,"y":188,"width":820,"height":11}},{"id":"7ded996e-d82e-4faf-9178-3c70f817a095","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":134,"box":{"x":69,"y":203,"width":827,"height":12}},{"id":"f729ec5b-6743-483c-9ff4-3de6cdd91517","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":134,"box":{"x":69,"y":218,"width":831,"height":12}},{"id":"b0968d9d-9131-420b-a0ec-0f779d1ea6bf","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":134,"box":{"x":69,"y":234,"width":817,"height":11}},{"id":"dd6ee751-d5f0-4a85-9b8e-dd528dc1fa71","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":134,"box":{"x":68,"y":249,"width":837,"height":11}},{"id":"96ff2681-8226-4707-9d9d-930b1027ad7b","block_type":"box","text":"securities. All dividends, interest, subscription or other rights per taining to such securities shall become the proper ty","page_number":134,"box":{"x":69,"y":264,"width":835,"height":11}},{"id":"bb866741-5a68-4231-bb49-3a98482d1ec6","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":134,"box":{"x":69,"y":279,"width":795,"height":11}},{"id":"549f05a7-cadc-46b3-b4c0-6ca8f5a88580","block_type":"box","text":"receipt from the issuer. Shares purchased in exchange for securities generally cannot be redeemed until the transfer","page_number":134,"box":{"x":69,"y":294,"width":833,"height":11}},{"id":"b9d7b14e-096d-4d59-ad15-d779d368cbdd","block_type":"box","text":"has settled.","page_number":134,"box":{"x":69,"y":309,"width":83,"height":9}},{"id":"07ad77a2-6c4e-460a-9199-11cb9c8cdcd7","block_type":"box","text":"Institutional Shares","page_number":134,"box":{"x":69,"y":340,"width":142,"height":8}},{"id":"47ba0156-ab05-4ec5-9223-8eab123a31e2","block_type":"box","text":"Institutional Shares may be purchased at NAV without a sales charge. Only cer tain investors are eligible to","page_number":134,"box":{"x":102,"y":362,"width":759,"height":11}},{"id":"a6a2ec36-4f59-4aca-8743-1e9b046fae08","block_type":"box","text":"purchase Institutional Shares. Investors who are eligible to purchase Institutional Shares should purchase","page_number":134,"box":{"x":70,"y":377,"width":756,"height":12}},{"id":"76d56987-84a6-4848-83af-66419c6aee4a","block_type":"box","text":"Institutional Shares because they are not subject to any sales charge and have lower ongoing expenses than","page_number":134,"box":{"x":70,"y":392,"width":775,"height":12}},{"id":"f3f0ea56-c999-400d-a63d-dddc100a54e5","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":134,"box":{"x":70,"y":407,"width":839,"height":12}},{"id":"21e283ac-3552-4fe8-81c3-9707f8ca1a9d","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":134,"box":{"x":69,"y":423,"width":807,"height":11}},{"id":"20344007-5947-47ce-92b1-e3eb69836e1a","block_type":"box","text":"sale of shares of any Fund at any time.","page_number":134,"box":{"x":69,"y":438,"width":276,"height":11}},{"id":"fff67ea8-82d7-4a16-8ed1-2525e5ab963f","block_type":"box","text":"Eligible Institutional Share Investors.","page_number":134,"box":{"x":102,"y":460,"width":259,"height":12}},{"id":"fd3c49ea-4f13-473e-a196-ec89810e65ec","block_type":"box","text":"Institutional Shares of the Funds may be purchased by customers of broker","page_number":134,"box":{"x":369,"y":460,"width":540,"height":12}},{"id":"560a6f67-e390-4f5a-b025-0712ed334435","block_type":"box","text":"dealers and agents that have established a servicing relationship with the Fund on behalf of their customers. These","page_number":134,"box":{"x":69,"y":475,"width":826,"height":12}},{"id":"11db08cf-a7eb-49f3-a8c7-ab9f457447f7","block_type":"box","text":"broker-dealers and agents may impose additional or different conditions on the purchase or redemption of Fund","page_number":134,"box":{"x":69,"y":491,"width":796,"height":11}},{"id":"8e572f3f-992d-4e82-a0c2-a81d4359cd09","block_type":"box","text":"shares by their customers and may charge their customers transaction, account or other fees on the purchase and","page_number":134,"box":{"x":69,"y":506,"width":819,"height":11}},{"id":"9c1dc60b-5449-4e9a-9f3a-d267f1a579c4","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":134,"box":{"x":69,"y":521,"width":840,"height":11}},{"id":"6036a12e-cd6d-4380-ab7f-6f15bef3dbad","block_type":"box","text":"any such fees and information regarding any additional or different conditions regarding purchases and redemptions.","page_number":134,"box":{"x":69,"y":536,"width":833,"height":11}},{"id":"955d129d-6e92-4dfb-b353-b3914507d62b","block_type":"box","text":"Shareholders who are customers of such broker-dealers or agents should consult them for information regarding","page_number":134,"box":{"x":69,"y":551,"width":802,"height":11}},{"id":"b3ecc5d5-20a6-4327-bacb-d58e4aa32eac","block_type":"box","text":"these fees and conditions.","page_number":134,"box":{"x":68,"y":566,"width":189,"height":9}},{"id":"b5d1f447-2b68-4142-ad0d-d36342c398f9","block_type":"box","text":"Payment for Institutional Shares must normally be made in Federal funds or other funds immediately available by","page_number":134,"box":{"x":102,"y":589,"width":805,"height":11}},{"id":"153b1db3-b554-43c7-93f3-75e21b18f297","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":134,"box":{"x":69,"y":604,"width":825,"height":11}},{"id":"39fd684e-2d33-4a82-a578-b0bc0bda7b90","block_type":"box","text":"cer tain Funds, be made in the form of securities that are permissible investments for such Funds. If payment for a","page_number":134,"box":{"x":69,"y":619,"width":817,"height":11}},{"id":"108acbf6-92ab-484c-84a3-d5d79d915f50","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":134,"box":{"x":70,"y":634,"width":831,"height":12}},{"id":"f0f2b5cb-20d3-4b56-8008-424f2cb7665b","block_type":"box","text":"incurred by the Fund.","page_number":134,"box":{"x":70,"y":650,"width":147,"height":11}},{"id":"b97d941f-24cd-4cea-b6ec-f14096d9c3fb","block_type":"box","text":"Cer tain of the Funds offer Institutional Shares as described in each such Fund’s Prospectus. In addition, the","page_number":134,"box":{"x":102,"y":672,"width":774,"height":11}},{"id":"2778689d-6e58-425c-9357-b20bd04c76dc","block_type":"box","text":"following investors may purchase Institutional Shares: employees, officers and directors/trustees of BlackRock, Inc.,","page_number":134,"box":{"x":68,"y":687,"width":834,"height":11}},{"id":"1b83bdf0-32fd-4473-b106-8c301da72a09","block_type":"box","text":"BlackRock Funds, Bank of America Corporation (“BofA Corp.”), Barclays PLC or their respective affiliates and","page_number":134,"box":{"x":70,"y":702,"width":773,"height":11}},{"id":"8f2b2954-3e86-4597-9b5b-5f7ecdd77ffc","block_type":"box","text":"immediate family members of such persons, individuals and “Institutional Investors” with a minimum initial","page_number":134,"box":{"x":70,"y":717,"width":762,"height":12}},{"id":"9402c9c1-4d1e-4f60-9268-1ea83e5a5ea3","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":134,"box":{"x":70,"y":732,"width":821,"height":12}},{"id":"e26c8aa3-b3a5-4298-9686-818519846254","block_type":"box","text":"an agreement with the Distributor to purchase such shares (“Institutional Investors” include, but are not limited to,","page_number":134,"box":{"x":69,"y":748,"width":819,"height":11}},{"id":"e57d69c2-609e-4377-ade8-bf495a58d066","block_type":"box","text":"endowments, foundations, family offices, local, city, and state governmental institutions, corporations, and insurance","page_number":134,"box":{"x":69,"y":763,"width":836,"height":11}},{"id":"ed53a0f9-ac5a-47c2-93de-2180bce40b73","block_type":"box","text":"company separate accounts); employer-sponsored retirement plans (which, for this purpose, do not include SEP IRAs,","page_number":134,"box":{"x":69,"y":778,"width":837,"height":11}},{"id":"14c8d26e-20d5-4666-b33d-aa28fff11fb0","block_type":"box","text":"SIMPLE IRAs or SARSEPs), state sponsored 529 college savings plans, collective trust funds, investment companies","page_number":134,"box":{"x":69,"y":793,"width":832,"height":11}},{"id":"0c956dd4-d678-4223-9185-94d7c0ee4d50","block_type":"box","text":"or other pooled investment vehicles, unaffiliated thrifts and unaffiliated banks and trust companies, each of which","page_number":134,"box":{"x":69,"y":808,"width":815,"height":11}},{"id":"0df3409a-53ad-47e8-ae95-b158737693cf","block_type":"box","text":"may purchase shares of the Fund through a financial intermediary that has entered into an agreement with the","page_number":134,"box":{"x":69,"y":823,"width":789,"height":12}},{"id":"cf25a04d-6f48-4ae2-83dc-3ec953ce7623","block_type":"box","text":"Distributor to purchase such shares; clients investing through a self-directed IRA brokerage account program","page_number":134,"box":{"x":70,"y":838,"width":772,"height":12}},{"id":"09a8120a-fdac-4467-8906-6578bb0e6399","block_type":"box","text":"sponsored by a retirement plan record-keeper, provided that such program offers only mutual fund options and that","page_number":134,"box":{"x":69,"y":853,"width":822,"height":12}},{"id":"6ad5fdc8-0df8-4af4-8fa3-3aac72116367","block_type":"box","text":"the program maintains an account with the Fund on an omnibus basis; clients of financial intermediaries that:","page_number":134,"box":{"x":68,"y":869,"width":783,"height":11}},{"id":"0127555f-c654-46df-a49c-84be85dd4b88","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":134,"box":{"x":69,"y":884,"width":785,"height":11}},{"id":"2fea78b1-02b0-4985-a292-32464546098f","block_type":"box","text":"agreement with the Distributor to offer Institutional Shares through a no-load program or investment platform, in each","page_number":134,"box":{"x":69,"y":899,"width":838,"height":11}},{"id":"8c804d1c-5712-45cb-9795-238386829753","block_type":"box","text":"II-99","page_number":134,"box":{"x":473,"y":943,"width":32,"height":9}},{"id":"af2b6e2a-15ed-44e9-8508-f6c7526a5711","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":134,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6969d467-caa7-4a7d-a684-3cce6c6fe8c5","block_type":"box","text":"case, with no minimum initial investment; clients investing through financial intermediaries that have entered into an","page_number":135,"box":{"x":69,"y":45,"width":831,"height":11}},{"id":"e9d4fa86-6759-405e-9365-a1a968f9acdd","block_type":"box","text":"agreement with the Distributor to offer such shares on a platform that charges a transaction based sales","page_number":135,"box":{"x":69,"y":60,"width":751,"height":11}},{"id":"23cb0535-580d-42e2-b5bb-3e8547994f7d","block_type":"box","text":"commission outside of the Fund, with a minimum initial investment of $1,000; tax-qualified accounts for insurance","page_number":135,"box":{"x":69,"y":74,"width":817,"height":12}},{"id":"77588278-3162-4b15-b0f9-738cb9f84127","block_type":"box","text":"agents that are registered representatives of an insurance company’s broker-dealer that has entered into an","page_number":135,"box":{"x":69,"y":90,"width":773,"height":11}},{"id":"aede06d8-83ef-4118-9976-ac463b4ba4a6","block_type":"box","text":"agreement with the Distributor to offer Institutional Shares, and the family members of such persons, with a","page_number":135,"box":{"x":69,"y":105,"width":771,"height":11}},{"id":"fa4f6cc9-bc5e-4d7c-b0e8-2d7493387142","block_type":"box","text":"minimum initial investment of $1,000; trust depar tment clients of Bank of America, N.A. and its affiliates for whom","page_number":135,"box":{"x":69,"y":120,"width":822,"height":11}},{"id":"b0e6344e-99c3-43bd-95f1-320db903c37a","block_type":"box","text":"they (i) act in a fiduciary capacity (excluding par ticipant directed employee benefit plans), (ii) otherwise have","page_number":135,"box":{"x":68,"y":135,"width":771,"height":12}},{"id":"799df1c5-a418-4bf8-b0c1-950f6d998517","block_type":"box","text":"investment discretion, or (iii) act as custodian for at least $2 million in assets; and holders of cer tain BofA Corp.","page_number":135,"box":{"x":70,"y":150,"width":801,"height":11}},{"id":"3d537c56-5451-4f6a-9480-7e34d69339de","block_type":"box","text":"sponsored unit investment trusts (UITs) who reinvest dividends received from such UITs in shares of a Fund.","page_number":135,"box":{"x":69,"y":166,"width":770,"height":11}},{"id":"010aab5b-ef64-4658-9d44-d5f8c3a9ccd7","block_type":"box","text":"Purchase Privileges of Cer tain Persons.","page_number":135,"box":{"x":102,"y":188,"width":280,"height":12}},{"id":"35640545-ebdd-4191-8629-624ac0a1c7f3","block_type":"box","text":"Employees, officers, directors/trustees of BlackRock, Inc., BlackRock","page_number":135,"box":{"x":389,"y":188,"width":496,"height":11}},{"id":"77dee2d8-8e1e-42cb-a1da-3fb86f821d3c","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":135,"box":{"x":70,"y":203,"width":812,"height":12}},{"id":"ea078b99-4ff8-41c1-ae58-b99bdc471e2f","block_type":"box","text":"persons may purchase Institutional Shares at lower investment minimums than stated in each Fund’s Prospectus. A","page_number":135,"box":{"x":70,"y":219,"width":828,"height":11}},{"id":"0e46cc01-2bcb-4084-8ca0-2db377aa478e","block_type":"box","text":"Fund realizes economies of scale and reduction of sales-related expenses by vir tue of the familiarity of these persons","page_number":135,"box":{"x":70,"y":234,"width":838,"height":11}},{"id":"a7f93c1f-dda6-44ea-b5c9-4c1e14aab0f5","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":135,"box":{"x":68,"y":249,"width":826,"height":11}},{"id":"1c8fed52-e00c-4502-aa70-9c81e1056592","block_type":"box","text":"satisfy the Fund’s suitability standards.","page_number":135,"box":{"x":69,"y":264,"width":279,"height":11}},{"id":"6fde4c66-23a4-41ae-a58f-c266a088d76a","block_type":"box","text":"Initial Sales Charge Alternative — Investor A Shares","page_number":135,"box":{"x":69,"y":294,"width":382,"height":11}},{"id":"364c7452-7fa4-4805-b2b4-4a6ba915a167","block_type":"box","text":"Investors who prefer an initial sales charge alternative may elect to purchase Investor A Shares. Investor A1","page_number":135,"box":{"x":102,"y":317,"width":770,"height":11}},{"id":"096be735-0825-4a21-ab1a-131165e2ec9a","block_type":"box","text":"Shares are offered only (i) for purchase by cer tain employer-sponsored retirement plans and fee-based programs that","page_number":135,"box":{"x":69,"y":332,"width":837,"height":11}},{"id":"4e166ed6-f5ed-4e0a-8c07-f677c9c47488","block_type":"box","text":"have been previously approved by cer tain Funds, and (ii) to cer tain investors who currently hold Investor A1 Shares","page_number":135,"box":{"x":69,"y":347,"width":819,"height":11}},{"id":"228ddade-4c8c-4aa5-9ee2-73ac8201498e","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":135,"box":{"x":68,"y":362,"width":840,"height":11}},{"id":"97779359-46a8-4123-b0e8-8f0899d255ea","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":135,"box":{"x":69,"y":377,"width":815,"height":11}},{"id":"e9f7e27e-9e06-4249-ac7d-1b031468ad33","block_type":"box","text":"sometimes referred to herein as “front-end load shares.” Investor A Shares of Index Funds (defined below) and","page_number":135,"box":{"x":69,"y":392,"width":791,"height":11}},{"id":"1da9f2d9-6f23-41b3-ae3f-afd43a43684a","block_type":"box","text":"BlackRock Shor t Obligations Fund generally are not subject to an initial sales charge or front-end load.","page_number":135,"box":{"x":70,"y":407,"width":727,"height":12}},{"id":"8a061ed1-ae1b-4ae0-a3de-276289ccc222","block_type":"box","text":"Investors qualifying for significantly reduced initial sales charges may find the initial sales charge alternative","page_number":135,"box":{"x":102,"y":430,"width":770,"height":11}},{"id":"2a0cc61d-a9f8-47dc-9e23-2a72355632d1","block_type":"box","text":"par ticularly attractive because similar sales charge reductions are not available with respect to the deferred sales","page_number":135,"box":{"x":70,"y":445,"width":812,"height":12}},{"id":"be85a381-1305-48d0-86ca-583e56f3ca81","block_type":"box","text":"charges imposed in connection with investments in Investor C Shares (sometimes referred to herein as “CDSC","page_number":135,"box":{"x":69,"y":460,"width":791,"height":12}},{"id":"8b02ed38-78fd-4e5a-b806-1147037dca79","block_type":"box","text":"shares”). Investors who do not qualify for reduced initial sales charges and who expect to maintain their investment","page_number":135,"box":{"x":69,"y":475,"width":826,"height":12}},{"id":"bbbd3274-b702-4da8-b25a-fce2a6a9f5d9","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":135,"box":{"x":68,"y":491,"width":808,"height":11}},{"id":"2abe4878-03dd-48db-957b-8db56ab44c9b","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":135,"box":{"x":69,"y":506,"width":834,"height":11}},{"id":"f6006543-79b5-4225-bbd5-1e96087d3126","block_type":"box","text":"service fee. Although some investors who previously purchased Institutional Shares may no longer be eligible to","page_number":135,"box":{"x":69,"y":521,"width":798,"height":11}},{"id":"2195723c-ca96-44f9-95b4-c5e531f737f4","block_type":"box","text":"purchase Institutional Shares of other Funds, those previously purchased Institutional Shares, together with all","page_number":135,"box":{"x":70,"y":536,"width":789,"height":11}},{"id":"cd02a59d-5b02-40d6-80ae-2d298db54741","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":135,"box":{"x":70,"y":551,"width":805,"height":11}},{"id":"f7c3ae3d-7d51-4723-beb5-e06bbce963a0","block_type":"box","text":"investor for a reduced initial sales charge on new initial sales charge purchases. In addition, the ongoing CDSC","page_number":135,"box":{"x":70,"y":566,"width":792,"height":11}},{"id":"aa94a0bf-3770-4453-8f20-4015e84a36e7","block_type":"box","text":"shares service and distribution fees will cause CDSC shares to have higher expense ratios, pay lower dividends and","page_number":135,"box":{"x":69,"y":581,"width":826,"height":12}},{"id":"80ffd877-0f91-44b0-8a29-11fd6e2efcaf","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":135,"box":{"x":69,"y":596,"width":802,"height":12}},{"id":"f138da3f-7e58-4cc5-9c3d-9da39eaf4545","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":135,"box":{"x":69,"y":612,"width":834,"height":11}},{"id":"671cdc59-bae3-4792-ad48-e0d746ab41ab","block_type":"box","text":"have a lower total return than Institutional Shares.","page_number":135,"box":{"x":69,"y":627,"width":358,"height":9}},{"id":"a4aa839f-9c1a-4598-bd5b-cd5b557a0937","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Par t I of each Fund’s SAI for","page_number":135,"box":{"x":102,"y":649,"width":734,"height":12}},{"id":"a1726ff8-bf12-475b-8bc5-c7e638dfe50e","block_type":"box","text":"information about amounts paid to the Distributor in connection with Investor A and Investor A1 Shares for the","page_number":135,"box":{"x":70,"y":664,"width":785,"height":11}},{"id":"08531475-e2db-4e47-8bd2-f720f751bbbc","block_type":"box","text":"periods indicated.","page_number":135,"box":{"x":70,"y":680,"width":124,"height":11}},{"id":"821dee29-27d3-494d-8efe-0bdda565677f","block_type":"box","text":"The Distributor may reallow discounts to selected securities dealers and other financial intermediaries and retain","page_number":135,"box":{"x":101,"y":702,"width":806,"height":11}},{"id":"9d544a00-7526-4f89-bd84-47b71dd264e1","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":135,"box":{"x":68,"y":718,"width":830,"height":11}},{"id":"4444a7b5-58a2-4050-9d30-8e1aec367f9c","block_type":"box","text":"securities dealers and other financial intermediaries selling front-end load shares of a Fund will receive a concession","page_number":135,"box":{"x":69,"y":732,"width":832,"height":12}},{"id":"ca71bfca-3654-4a7e-9552-a4ca958bd83a","block_type":"box","text":"equal to most of the sales charge, they may be deemed to be underwriters under the Securities Act.","page_number":135,"box":{"x":69,"y":748,"width":714,"height":11}},{"id":"9489c4bc-c31d-4c7c-9f99-eb59be32874a","block_type":"box","text":"Initial Sales Charge — Investor P Shares","page_number":135,"box":{"x":69,"y":778,"width":297,"height":11}},{"id":"433044af-09e4-4e36-af17-127021a4fff6","block_type":"box","text":"Cer tain Funds offer Investor P Shares as described in each such Fund’s Prospectus, Investor P Shares are","page_number":135,"box":{"x":102,"y":801,"width":761,"height":11}},{"id":"229e9283-f350-4a01-b170-34eb4f4249dd","block_type":"box","text":"available for purchase only through registered representatives of an insurance company’s broker-dealer that has","page_number":135,"box":{"x":69,"y":816,"width":800,"height":11}},{"id":"eb363159-dd28-4a27-8695-f999a2a80631","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":135,"box":{"x":69,"y":831,"width":812,"height":11}},{"id":"28a660af-fe64-4488-8bac-e8a21cbccb5e","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":135,"box":{"x":69,"y":846,"width":813,"height":11}},{"id":"565ebd10-ce84-4ffe-9dd5-03bc06e4d04b","block_type":"box","text":"dividends and have a lower total return than Investor A Shares of the same Fund.","page_number":135,"box":{"x":69,"y":861,"width":578,"height":9}},{"id":"d874f33d-8bdd-421a-b32d-d070ba8d63e1","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Par t I of each Fund’s SAI for","page_number":135,"box":{"x":102,"y":884,"width":734,"height":11}},{"id":"edb45b00-989e-4a9d-be3e-912aeee7ebd5","block_type":"box","text":"information about amounts paid to the Distributor in connection with Investor P Shares for the periods indicated.","page_number":135,"box":{"x":70,"y":899,"width":800,"height":11}},{"id":"50fe47ab-e77d-446f-a030-d1d11ddf8870","block_type":"box","text":"II-100","page_number":135,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"2abab3e0-2385-47ea-807c-40dc484b3053","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":135,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"57da6e07-188e-4d6c-9244-bc3c040d7522","block_type":"box","text":"The Distributor may reallow discounts to selected securities dealers and other financial intermediaries and retain","page_number":136,"box":{"x":101,"y":45,"width":806,"height":11}},{"id":"0825f55c-bdee-4d3e-bb61-3e45a836b3b8","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":136,"box":{"x":68,"y":60,"width":830,"height":11}},{"id":"4d1f8d1b-9070-4b75-9889-1635be70f33b","block_type":"box","text":"securities dealers and other financial intermediaries selling front-end load shares of a Fund will receive a concession","page_number":136,"box":{"x":69,"y":75,"width":832,"height":11}},{"id":"79db246a-4a6b-4819-87d4-0bac8f3f0c65","block_type":"box","text":"equal to most of the sales charge, they may be deemed to be underwriters under the Securities Act.","page_number":136,"box":{"x":69,"y":90,"width":714,"height":11}},{"id":"5d30006a-e5f4-4cc5-91bb-74455db2f9bc","block_type":"box","text":"Reduced Initial Sales Charges","page_number":136,"box":{"x":69,"y":120,"width":219,"height":11}},{"id":"9738a8ea-8d0e-45ad-9ffc-b0ac4c78ace2","block_type":"box","text":"Cer tain investors may be eligible for a reduction in or waiver of a sales load due to the nature of the investors","page_number":136,"box":{"x":102,"y":143,"width":782,"height":11}},{"id":"d336a62d-d068-43f4-b630-800bf7e41c80","block_type":"box","text":"and/or the reduced sales effor ts necessary to obtain their investments. Financial intermediaries may, in connection","page_number":136,"box":{"x":69,"y":158,"width":827,"height":11}},{"id":"51f792f3-f030-4679-b0f3-486f23834ddc","block_type":"box","text":"with a change in account type or otherwise in accordance with a financial intermediary’s policies and procedures,","page_number":136,"box":{"x":68,"y":173,"width":809,"height":11}},{"id":"195f7068-5c7d-4d02-b19d-e2bea0038a60","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":136,"box":{"x":69,"y":188,"width":823,"height":12}},{"id":"8b97e542-b12e-4a50-bb06-6442e0e9d701","block_type":"box","text":"exchanged shares are not subject to a contingent deferred sales charge and that shareholders meet the eligibility","page_number":136,"box":{"x":69,"y":203,"width":812,"height":12}},{"id":"df54edd0-b06f-414a-9900-e2f88abe55e6","block_type":"box","text":"requirements of the new share class. Cer tain sales load reductions and waivers may be available to customers of","page_number":136,"box":{"x":69,"y":218,"width":813,"height":12}},{"id":"a83d3b87-18ed-45ae-9b87-2242f02ce67c","block_type":"box","text":"cer tain financial intermediaries, as described under “Intermediary-Defined Sales Charge Waiver Policies” in the","page_number":136,"box":{"x":69,"y":234,"width":793,"height":11}},{"id":"bdaa601f-1313-479f-8896-d585f076f367","block_type":"box","text":"Fund’s Prospectus. Please speak to your financial intermediary for more information.","page_number":136,"box":{"x":70,"y":249,"width":603,"height":11}},{"id":"fd509aec-80ac-4654-bef3-c3e531be0c29","block_type":"box","text":"Reinvested Dividends.","page_number":136,"box":{"x":102,"y":272,"width":156,"height":8}},{"id":"2ab076ce-46fd-487f-b23b-574c4387e080","block_type":"box","text":"No sales charges are imposed upon shares issued as a result of the automatic","page_number":136,"box":{"x":265,"y":271,"width":566,"height":12}},{"id":"eb05405d-e7f0-4083-8b1d-b6a0c6e94a76","block_type":"box","text":"reinvestment of dividends.","page_number":136,"box":{"x":69,"y":286,"width":186,"height":10}},{"id":"209d3e9d-f46f-4852-bfb6-da20272cfb4e","block_type":"box","text":"Right of Accumulation.","page_number":136,"box":{"x":102,"y":309,"width":158,"height":11}},{"id":"4830a7ee-5268-4bc6-92dd-95eaac4ad22e","block_type":"box","text":"Investors have a “right of accumulation” under which any of the following may be","page_number":136,"box":{"x":267,"y":309,"width":574,"height":11}},{"id":"316ceb23-feed-4023-ade5-467b147c9eba","block_type":"box","text":"combined with the amount of the current purchase in determining whether an investor qualifies for a breakpoint and","page_number":136,"box":{"x":69,"y":324,"width":826,"height":12}},{"id":"020c52b1-cf48-4ab4-9291-0ab6a471ea10","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":136,"box":{"x":69,"y":339,"width":810,"height":12}},{"id":"2d89a4e4-f898-4a04-9277-fdb9db2a787f","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":136,"box":{"x":70,"y":355,"width":825,"height":11}},{"id":"7ce790d2-5981-4f23-be5e-b50d30ca1f2a","block_type":"box","text":"existing shares of cer tain unlisted closed-end management investment companies sponsored and advised by","page_number":136,"box":{"x":69,"y":370,"width":780,"height":11}},{"id":"7bb7b096-4c58-4460-93b6-650be48f745e","block_type":"box","text":"BlackRock or its affiliates (“Eligible Unlisted BlackRock Closed-End Funds”) and (iii) the investment in the BlackRock","page_number":136,"box":{"x":70,"y":385,"width":828,"height":11}},{"id":"0682df2c-0059-441b-b7fa-2792211d8de9","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":136,"box":{"x":69,"y":400,"width":804,"height":11}},{"id":"ceb3a6af-cbdf-4066-8116-a06744a12264","block_type":"box","text":"intermediaries may value current holdings of their customers differently for purposes of determining whether an","page_number":136,"box":{"x":70,"y":415,"width":794,"height":11}},{"id":"fe3dc325-e3b6-456f-8b81-96954d1532c4","block_type":"box","text":"investor qualifies for a breakpoint and a reduced front-end sales charge, although customers of the same financial","page_number":136,"box":{"x":70,"y":430,"width":814,"height":11}},{"id":"ca66cc12-de06-47f9-b775-bed9a545c768","block_type":"box","text":"intermediary will be treated similarly. In order to use this right, the investor must aler t BlackRock to the existence of","page_number":136,"box":{"x":70,"y":445,"width":828,"height":12}},{"id":"f437aaba-cad2-49e1-91d2-32de4dadadfa","block_type":"box","text":"any previously purchased shares. Cer tain funds employ a “passive” management approach and attempt to match the","page_number":136,"box":{"x":69,"y":460,"width":838,"height":12}},{"id":"5256e50f-1071-4e96-a15b-8033a79e3c85","block_type":"box","text":"per formance of a target index as closely as possible before the deduction of Fund expenses (“Index Funds”).","page_number":136,"box":{"x":70,"y":475,"width":776,"height":12}},{"id":"718a17e9-8333-42d8-b6fa-06b8d46bafb7","block_type":"box","text":"Although Investor A Shares of Index Funds and BlackRock Shor t Obligations Fund generally are not subject to a sales","page_number":136,"box":{"x":68,"y":491,"width":835,"height":11}},{"id":"e080eade-4f1d-4d97-9c97-51da216ca4e3","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":136,"box":{"x":69,"y":506,"width":839,"height":11}},{"id":"c366e4a4-faf3-4672-8c45-a85e5ec0e73b","block_type":"box","text":"in the Index Funds and BlackRock Shor t Obligations Fund may be combined with the amount of an investor’s current","page_number":136,"box":{"x":70,"y":521,"width":829,"height":11}},{"id":"f7029a2d-7fc9-48c3-a2bb-eefb97a97fc0","block_type":"box","text":"purchase in determining whether an investor qualifies for a breakpoint and a reduced front-end sales charge.","page_number":136,"box":{"x":70,"y":536,"width":774,"height":11}},{"id":"58429695-ef79-42ef-b083-fcb34b1946da","block_type":"box","text":"Letter of Intent.","page_number":136,"box":{"x":102,"y":559,"width":109,"height":9}},{"id":"b2485b82-5a69-4929-8268-9d92807d61df","block_type":"box","text":"An investor may qualify for a reduced front-end sales charge immediately by signing a “Letter of","page_number":136,"box":{"x":217,"y":559,"width":681,"height":11}},{"id":"f52728b3-bf91-4ee2-bbfa-bd2ddf4c6fb4","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":136,"box":{"x":70,"y":574,"width":820,"height":11}},{"id":"781a9aab-be99-424f-9d00-8fcefb5f7578","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":136,"box":{"x":68,"y":589,"width":792,"height":11}},{"id":"fc70d220-7b5f-4f35-959f-3994ce7ecfd8","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":136,"box":{"x":70,"y":604,"width":802,"height":11}},{"id":"763c8951-ff38-4c9c-a493-2fc4a645851a","block_type":"box","text":"more Eligible Unlisted BlackRock Closed-End Funds and/or (iii) make an investment through the BlackRock","page_number":136,"box":{"x":69,"y":619,"width":760,"height":11}},{"id":"62f4e38c-b3f7-4af4-be20-c22357958866","block_type":"box","text":"CollegeAdvantage 529 Program in one or more BlackRock Funds. The initial investment must meet the minimum","page_number":136,"box":{"x":69,"y":634,"width":800,"height":12}},{"id":"e8679ec4-552f-4412-9afe-1371f320d598","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":136,"box":{"x":70,"y":649,"width":826,"height":12}},{"id":"2187812e-208d-406f-a231-ccb454baa810","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":136,"box":{"x":69,"y":664,"width":822,"height":12}},{"id":"d3d376d4-0249-4be7-8f49-f1f22851957a","block_type":"box","text":"Investor P, Institutional, Class K and Premier Shares, Eligible Unlisted BlackRock Closed-End Funds and the","page_number":136,"box":{"x":70,"y":680,"width":764,"height":11}},{"id":"63f17ea2-9f01-4023-a6bb-d879d123e587","block_type":"box","text":"BlackRock CollegeAdvantage 529 Program Class A and Class C Units) as of the date of commencement that are","page_number":136,"box":{"x":70,"y":695,"width":800,"height":11}},{"id":"c4b7643f-85e9-4296-84e4-41cc700b9a10","block_type":"box","text":"eligible under the Right of Accumulation may be counted towards the sales charge reduction. The investor must notify","page_number":136,"box":{"x":69,"y":710,"width":838,"height":11}},{"id":"94231f23-94ba-4392-9d8d-f273a4c1adae","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":136,"box":{"x":68,"y":725,"width":835,"height":11}},{"id":"d62e14d8-9b9c-4a73-a409-1091b4ebc682","block_type":"box","text":"BlackRock CollegeAdvantage 529 Program that should be counted towards the sales charge reduction and (ii) any","page_number":136,"box":{"x":70,"y":740,"width":811,"height":11}},{"id":"50ec3c5e-f238-4acd-8d18-86920b6a925d","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":136,"box":{"x":69,"y":755,"width":814,"height":11}},{"id":"b9485298-ceed-4d97-86ce-8f00f35e4fc1","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":136,"box":{"x":68,"y":770,"width":827,"height":12}},{"id":"a36a5310-d463-4e43-b898-ecf682abf5d8","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":136,"box":{"x":69,"y":785,"width":827,"height":12}},{"id":"0fa55b9b-8c9b-4ad4-84a2-8b74c9243545","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":136,"box":{"x":69,"y":801,"width":817,"height":11}},{"id":"70a93109-7b75-4395-8761-b62e67f44b96","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":136,"box":{"x":70,"y":816,"width":807,"height":11}},{"id":"01dd35a1-c692-4660-b4ee-e971c1daa9ba","block_type":"box","text":"Shares, as applicable, held in escrow to pay the difference.","page_number":136,"box":{"x":69,"y":831,"width":423,"height":11}},{"id":"3c8147be-e405-45ab-a3f3-c826151a066e","block_type":"box","text":"Placement Fees.","page_number":136,"box":{"x":102,"y":854,"width":116,"height":8}},{"id":"3d7cf1d3-e47a-49e5-afa9-41b0e1a9be8a","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":136,"box":{"x":102,"y":876,"width":777,"height":11}},{"id":"7196fca4-d824-4640-b897-a0aef2fbc0a7","block_type":"box","text":"which may depend on the policies, procedures and trading platforms of your financial intermediary.","page_number":136,"box":{"x":68,"y":891,"width":704,"height":12}},{"id":"46e4baf5-7991-4556-924d-cb680fb43146","block_type":"box","text":"II-101","page_number":136,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"64729b81-f9a8-4cb3-a1ac-c48c0b5f5a32","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":136,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"77053ad1-6933-41a8-a778-acd71ba25b77","block_type":"box","text":"Except as noted below, these placement fees may be up to the following amounts for Investor A Shares:","page_number":137,"box":{"x":102,"y":45,"width":741,"height":11}},{"id":"fd728046-867c-4a99-bba8-98a9aaab2af5","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":137,"box":{"x":167,"y":72,"width":361,"height":10}},{"id":"656e8bb0-66bd-46c5-97d9-1d0d9b42da83","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":137,"box":{"x":535,"y":72,"width":288,"height":9}},{"id":"82fe82a1-b519-47d8-80aa-0854f30918f2","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":137,"box":{"x":167,"y":87,"width":361,"height":10}},{"id":"2bdb6432-0172-42b8-a7b0-06045c92eaa5","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":137,"box":{"x":535,"y":88,"width":288,"height":8}},{"id":"5baf3c6e-bcbe-48a8-9229-eaf1762645ea","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":137,"box":{"x":167,"y":102,"width":345,"height":10}},{"id":"463ab866-feff-4953-be6a-a7d23600cdd5","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":137,"box":{"x":518,"y":103,"width":305,"height":9}},{"id":"acbc6a1d-fc60-40c0-ae8c-ee0d5dd75e50","block_type":"box","text":"With respect to Investor A Shares of BlackRock Global Allocation Fund, Inc., BlackRock Dynamic High Income","page_number":137,"box":{"x":101,"y":126,"width":776,"height":12}},{"id":"3ab3ba9b-d804-4748-a5f1-840e6e4e5948","block_type":"box","text":"Por tfolio (for shares purchased prior to July 1, 2020) and BlackRock Multi-Asset Income Por tfolio (for shares","page_number":137,"box":{"x":69,"y":142,"width":774,"height":11}},{"id":"dab6b663-4238-4edf-af62-308d1d7df781","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":137,"box":{"x":70,"y":157,"width":824,"height":11}},{"id":"02f7e131-b5a8-4680-a596-e2f7a2e43414","block_type":"box","text":"and BlackRock Event Driven Equity Fund, the placement fees may be up to the following amounts:","page_number":137,"box":{"x":69,"y":172,"width":695,"height":11}},{"id":"a7b87cf7-6242-4d1b-84a2-4d432dc4fb5f","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":137,"box":{"x":167,"y":199,"width":410,"height":11}},{"id":"556e4016-45f2-4cee-b6bb-b02ed13a88f9","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":137,"box":{"x":583,"y":200,"width":240,"height":9}},{"id":"dd367cb8-3d07-45b7-8c3b-01d9b406a747","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":137,"box":{"x":167,"y":214,"width":361,"height":11}},{"id":"16e75fff-6d0f-4c3e-bce6-2a62dc0088ec","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":137,"box":{"x":535,"y":215,"width":288,"height":9}},{"id":"ec7853b0-4ec0-455c-bfc0-913179ae27c4","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":137,"box":{"x":167,"y":229,"width":345,"height":11}},{"id":"43bb13fd-4ec2-4d47-abed-9e0a3c97f892","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":137,"box":{"x":518,"y":230,"width":305,"height":9}},{"id":"ce21cc1d-aa91-421b-89f5-919f000a380e","block_type":"box","text":"With respect to Investor A Shares of BlackRock Systematic Multi-Strategy Fund of BlackRock Funds IV, BlackRock","page_number":137,"box":{"x":101,"y":254,"width":806,"height":11}},{"id":"0567b680-5676-48d4-a074-464f1f89eef3","block_type":"box","text":"Advantage CoreAlpha Bond Fund of BlackRock Funds VI, BlackRock Tactical Oppor tunities Fund of BlackRock Funds","page_number":137,"box":{"x":68,"y":269,"width":821,"height":11}},{"id":"bc8a4d91-8e8d-4352-a033-f23ac2a7202a","block_type":"box","text":"SM","page_number":137,"box":{"x":890,"y":269,"width":11,"height":5}},{"id":"ad79c4bc-d659-44b6-b830-d03b9f9ac925","block_type":"box","text":",","page_number":137,"box":{"x":903,"y":276,"width":2,"height":3}},{"id":"fe2cdaaf-157d-42a9-8763-fc375d76b6a1","block_type":"box","text":"BlackRock High Yield Por tfolio, BlackRock Core Bond Por tfolio and BlackRock Sustainable High Yield Bond Fund of","page_number":137,"box":{"x":70,"y":284,"width":816,"height":11}},{"id":"05fbfc91-0d43-4300-b7bb-9703d120a3b7","block_type":"box","text":"BlackRock Funds V, BlackRock Securitized Income Fund of Managed Account Series II and BlackRock Strategic Global","page_number":137,"box":{"x":70,"y":299,"width":835,"height":11}},{"id":"b85087f3-941b-408c-9c8d-08b2f134750c","block_type":"box","text":"Bond Fund, Inc., the placement fees may be up to the following amounts:","page_number":137,"box":{"x":70,"y":314,"width":520,"height":12}},{"id":"8388992d-adce-435b-8b34-a37482de03b0","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":137,"box":{"x":167,"y":341,"width":361,"height":11}},{"id":"47783143-0995-4760-b2fc-660324fd719e","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":137,"box":{"x":535,"y":342,"width":288,"height":9}},{"id":"106e6ac5-5022-44f3-94a6-879c0086fce3","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":137,"box":{"x":167,"y":356,"width":361,"height":11}},{"id":"ef6b7714-9d0f-43ac-a623-df60a5db60fc","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":137,"box":{"x":535,"y":357,"width":288,"height":9}},{"id":"0e4e2b61-b194-4d82-b581-3ab2f8a8fb9d","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":137,"box":{"x":167,"y":372,"width":345,"height":10}},{"id":"f819d667-2b25-4ebc-8324-b12812e6db96","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":137,"box":{"x":518,"y":372,"width":305,"height":9}},{"id":"328c9e51-fd98-4295-a6b1-8eb5b0e281bf","block_type":"box","text":"With respect to Investor A Shares of BlackRock Mor tgage-Backed Securities Fund and BlackRock Impact","page_number":137,"box":{"x":101,"y":396,"width":743,"height":11}},{"id":"8c4785c6-f3d1-40ae-a88e-3246f0c7f7d4","block_type":"box","text":"Mor tgage Fund of BlackRock Funds V, the placement fees may be up to the following amounts:","page_number":137,"box":{"x":70,"y":411,"width":674,"height":12}},{"id":"a2407104-133e-44f4-9a2a-6ab53a17b2f6","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":137,"box":{"x":167,"y":438,"width":361,"height":11}},{"id":"cf3604bc-bbc2-4c78-925b-5fb2c9da2c8a","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":137,"box":{"x":535,"y":439,"width":288,"height":9}},{"id":"7863b681-ab88-45f8-8908-a2dfc4a21dfe","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":137,"box":{"x":167,"y":453,"width":361,"height":11}},{"id":"b9e60e16-7310-4824-8b06-7efc02e1628c","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":137,"box":{"x":535,"y":454,"width":288,"height":9}},{"id":"c8504519-d0e5-4fb8-9fdb-b0ab6c444316","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":137,"box":{"x":167,"y":469,"width":345,"height":10}},{"id":"d52873a2-6c2c-4e23-9c7a-cad625bf3495","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":137,"box":{"x":518,"y":469,"width":305,"height":9}},{"id":"e8a2d9d9-73ce-4f90-9dc3-f9294b298c2f","block_type":"box","text":"With respect to Investor A Shares of BlackRock Managed Income Fund of BlackRock Funds II, the placement fees","page_number":137,"box":{"x":101,"y":493,"width":808,"height":11}},{"id":"2a45be0b-5ad0-448a-aa1e-af3fec8ff86d","block_type":"box","text":"may be up to the following amounts:","page_number":137,"box":{"x":69,"y":508,"width":257,"height":12}},{"id":"f02d5020-961f-4f1c-a620-916d782bc9a9","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":137,"box":{"x":167,"y":535,"width":410,"height":11}},{"id":"96e2e5d8-0a26-44e1-a4b6-d42e06bff363","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":137,"box":{"x":583,"y":536,"width":240,"height":9}},{"id":"28579718-c83c-4912-9f6a-112eb7ac5b6c","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":137,"box":{"x":167,"y":550,"width":361,"height":11}},{"id":"07b87220-6de2-4a5f-a96d-f64f91c25356","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":137,"box":{"x":535,"y":551,"width":288,"height":9}},{"id":"e5dda623-ca28-4d42-8690-62c618197d6c","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":137,"box":{"x":167,"y":566,"width":345,"height":10}},{"id":"75cd2002-2775-4a03-a8c6-fe2d1d15341c","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":137,"box":{"x":518,"y":566,"width":305,"height":9}},{"id":"b5f0b463-ca58-4632-8fff-77e49cafe328","block_type":"box","text":"With respect to Investor A Shares of BlackRock Inflation Protected Bond Por tfolio of BlackRock Funds V, the","page_number":137,"box":{"x":101,"y":590,"width":768,"height":11}},{"id":"6e8a1371-3187-4900-80da-644ff4cd3da4","block_type":"box","text":"placement fees may be up to the following amounts:","page_number":137,"box":{"x":70,"y":605,"width":371,"height":12}},{"id":"8d456da2-8e43-4060-9d34-e28a788383d7","block_type":"box","text":"$1 million but less than $3 million . . . . . . . . . . . . . .","page_number":137,"box":{"x":167,"y":632,"width":361,"height":11}},{"id":"17fe3fb6-d2c9-4046-a2f8-11ffaa4c9da5","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.15%","page_number":137,"box":{"x":535,"y":633,"width":288,"height":9}},{"id":"80af62b3-0fb0-4a85-95e4-e45a8bb3fe78","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":137,"box":{"x":167,"y":647,"width":361,"height":11}},{"id":"f366c19b-3193-4f50-b183-8d6a09bf6fef","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.10%","page_number":137,"box":{"x":535,"y":648,"width":288,"height":9}},{"id":"98b82c55-d371-4411-b17a-3ba3e91d0c17","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":137,"box":{"x":167,"y":663,"width":345,"height":10}},{"id":"85d4337a-0ac8-4993-8faa-62025f20f26f","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.05%","page_number":137,"box":{"x":518,"y":663,"width":305,"height":9}},{"id":"67106173-9fec-44a0-a88b-70d2087956f5","block_type":"box","text":"With respect to Investor A Shares of BlackRock Low Duration Bond Por tfolio, BlackRock Floating Rate Income","page_number":137,"box":{"x":101,"y":687,"width":778,"height":11}},{"id":"dc746ff1-2c9e-4fd8-ae4c-d8ab495a4a1e","block_type":"box","text":"Por tfolio, BlackRock Income Fund and BlackRock Strategic Income Oppor tunities Por tfolio of BlackRock Funds V, the","page_number":137,"box":{"x":69,"y":702,"width":830,"height":12}},{"id":"996ad787-2326-4142-8e50-332b92372f6d","block_type":"box","text":"placement fees may be up to the following amounts:","page_number":137,"box":{"x":70,"y":717,"width":371,"height":12}},{"id":"a14a0a62-50c2-4f5e-9dd3-a1a5067d2bb2","block_type":"box","text":"$500,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":137,"box":{"x":167,"y":744,"width":410,"height":12}},{"id":"7c3de518-63fc-43b6-a622-207e317f6a57","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":137,"box":{"x":583,"y":745,"width":240,"height":9}},{"id":"c27a4eda-bfb0-4c64-b65d-91ebe9f4829f","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":137,"box":{"x":167,"y":760,"width":361,"height":10}},{"id":"7e7e12fa-96e0-448e-bac7-540dcb117bc6","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":137,"box":{"x":535,"y":760,"width":288,"height":9}},{"id":"b1436e6e-8eeb-40bf-af4c-1b2e909cdf6a","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":137,"box":{"x":167,"y":775,"width":345,"height":10}},{"id":"a83aaa89-6d21-4975-a213-ba02e1599c1a","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":137,"box":{"x":518,"y":775,"width":305,"height":9}},{"id":"040f2f39-7c6e-4277-97b6-19fd3a29bbc9","block_type":"box","text":"With respect to Investor A Shares of BlackRock Shor t Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":137,"box":{"x":101,"y":799,"width":779,"height":11}},{"id":"368cb02a-9ac4-4eac-90d8-9a2149cdedc5","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":137,"box":{"x":70,"y":814,"width":780,"height":12}},{"id":"4e788bce-a213-44f8-9db4-81ef8e59c294","block_type":"box","text":"$250,000 and above . . . .","page_number":137,"box":{"x":167,"y":841,"width":182,"height":12}},{"id":"9e724754-055b-43fd-80f0-9a6f6bcaa062","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":137,"box":{"x":355,"y":842,"width":468,"height":9}},{"id":"1b964345-7d6b-4355-805f-d7de88c73a9f","block_type":"box","text":"II-102","page_number":137,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"ccf9c15a-fedb-4b76-afe2-2f37fc05cbbe","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":137,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e14d1c38-ee12-4b99-8fdd-4440cf4fb629","block_type":"box","text":"With respect to Investor A Shares of BlackRock Shor t Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":138,"box":{"x":101,"y":45,"width":779,"height":11}},{"id":"fc77a47e-42ad-428e-90e0-11cfa9f8ee21","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":138,"box":{"x":70,"y":60,"width":819,"height":11}},{"id":"5e0b9863-0f30-441a-8462-b4ea24fe1635","block_type":"box","text":"the following amounts:","page_number":138,"box":{"x":68,"y":75,"width":161,"height":11}},{"id":"d38d2ffc-bebf-493a-aed4-372d1c28519b","block_type":"box","text":"$100,000 and above . . . .","page_number":138,"box":{"x":167,"y":102,"width":182,"height":11}},{"id":"111eb583-83b1-4a45-a4a2-31f5f0c70e39","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":138,"box":{"x":355,"y":103,"width":468,"height":9}},{"id":"a85c9f92-8cdd-4900-a9b3-d4b70493c50f","block_type":"box","text":"With respect to Investor A Shares of BlackRock Shor t Duration Muni Fund of BlackRock Municipal Bond Fund,","page_number":138,"box":{"x":101,"y":126,"width":779,"height":11}},{"id":"db3e597e-9c8e-4d34-a393-a82aee9745e1","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":138,"box":{"x":70,"y":142,"width":775,"height":11}},{"id":"54ec6b70-8eca-44f4-99c0-fa7d509ad7bf","block_type":"box","text":"$250,000 and above . . . .","page_number":138,"box":{"x":167,"y":169,"width":182,"height":11}},{"id":"1a01a777-acf1-4655-8cea-0587057ade9e","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":138,"box":{"x":355,"y":169,"width":468,"height":9}},{"id":"754845d0-f1c4-44ad-94f7-a21f18b70328","block_type":"box","text":"With respect to Investor A Shares of BlackRock Strategic Municipal Oppor tunities Fund of BlackRock Municipal","page_number":138,"box":{"x":101,"y":193,"width":788,"height":12}},{"id":"c98ab931-ab12-47d8-ac34-1875f7603c40","block_type":"box","text":"Series Trust, BlackRock California Municipal Oppor tunities Fund of BlackRock California Municipal Series Trust,","page_number":138,"box":{"x":69,"y":208,"width":792,"height":11}},{"id":"36c0dc14-4a2b-4dd7-9620-ded1a9169657","block_type":"box","text":"BlackRock New York Municipal Oppor tunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock","page_number":138,"box":{"x":70,"y":224,"width":787,"height":11}},{"id":"249dc8d5-591d-4c95-b5dd-ef6a33b44710","block_type":"box","text":"Pennsylvania Municipal Bond Fund of BlackRock Multi-State Municipal Series Trust and BlackRock National Municipal","page_number":138,"box":{"x":69,"y":239,"width":834,"height":11}},{"id":"3cb0dc7f-e83a-43bf-82a3-25c7b7e31968","block_type":"box","text":"Fund of BlackRock Municipal Bond Fund, Inc., the placement fees may be up to the following amounts:","page_number":138,"box":{"x":70,"y":254,"width":729,"height":11}},{"id":"06b98886-be37-4f0d-b2fb-093ae678a1a5","block_type":"box","text":"$250,000 but less than $4 million . . . . . . . . . . . . . . . . . . . .","page_number":138,"box":{"x":167,"y":281,"width":410,"height":11}},{"id":"88d101f4-38a1-45d1-8099-aad7d09c664f","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 1.00%","page_number":138,"box":{"x":583,"y":282,"width":240,"height":8}},{"id":"cd070851-f538-4a34-871e-9a46a0e00e2f","block_type":"box","text":"$4 million but less than $10 million . . . . . . . . . . . . .","page_number":138,"box":{"x":167,"y":296,"width":361,"height":10}},{"id":"7a387c5d-005e-439e-b942-e7c6527a5228","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":138,"box":{"x":535,"y":297,"width":288,"height":9}},{"id":"0cc584f5-cc65-428a-bd67-41c3c2d375e5","block_type":"box","text":"$10 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":138,"box":{"x":167,"y":311,"width":345,"height":11}},{"id":"3948ce37-9228-456d-9734-dbf58daca2bf","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":138,"box":{"x":518,"y":312,"width":305,"height":9}},{"id":"91c9d834-0621-4d78-a7e4-6a0e519ef3d7","block_type":"box","text":"With respect to Investor A Shares of BlackRock Dynamic High Income Por tfolio (for shares purchased on or after","page_number":138,"box":{"x":101,"y":336,"width":801,"height":11}},{"id":"da79450d-f951-4708-80cb-477aa85bc1ef","block_type":"box","text":"July 1, 2020) and BlackRock Multi-Asset Income Por tfolio (for shares purchased on or after July 1, 2020) of","page_number":138,"box":{"x":69,"y":351,"width":769,"height":11}},{"id":"23e49768-f4c9-4c2a-893f-4f8275adfb7e","block_type":"box","text":"BlackRock Funds II, BlackRock Total Return Fund of BlackRock Bond Fund, Inc. and BlackRock Balanced Fund, Inc.,","page_number":138,"box":{"x":70,"y":366,"width":818,"height":10}},{"id":"eb69d7d6-16e1-479b-b0ae-055695839418","block_type":"box","text":"the placement fees may be up to the following amounts:","page_number":138,"box":{"x":68,"y":381,"width":401,"height":11}},{"id":"1a90ae7a-b3ac-438b-b79f-1d88481dc342","block_type":"box","text":"$250,000 but less than $3 million . . . . . . . . . . . . . . . . . . . .","page_number":138,"box":{"x":167,"y":408,"width":410,"height":11}},{"id":"209cd30f-5d11-489b-bfdb-d40768eb754d","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . 0.75%","page_number":138,"box":{"x":583,"y":409,"width":240,"height":9}},{"id":"adc61687-0e4a-43d4-b9a3-64ba484953b1","block_type":"box","text":"$3 million but less than $15 million . . . . . . . . . . . . .","page_number":138,"box":{"x":167,"y":423,"width":361,"height":11}},{"id":"c716e892-6793-48f4-aba2-37451608b0d7","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.50%","page_number":138,"box":{"x":535,"y":424,"width":288,"height":9}},{"id":"f0eae266-b677-49c0-bba0-94c26a8a6b8b","block_type":"box","text":"$15 million and above . . . . . . . . . . . . . . . . . . . . . . .","page_number":138,"box":{"x":167,"y":438,"width":345,"height":11}},{"id":"bf96ee10-d44d-49c0-91f2-7b6beed845c7","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.25%","page_number":138,"box":{"x":518,"y":439,"width":305,"height":9}},{"id":"9b965bca-b073-40de-96f6-38f2e67a447a","block_type":"box","text":"With respect to Investor P Shares of BlackRock LifePath","page_number":138,"box":{"x":101,"y":463,"width":398,"height":11}},{"id":"0bf2499b-90ca-46cc-9c2c-e8fed2679b6f","block_type":"box","text":"®","page_number":138,"box":{"x":500,"y":463,"width":6,"height":5}},{"id":"945c6001-2163-48f4-a842-58750a4c2cd6","block_type":"box","text":"Index 2030 Fund, BlackRock 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a","page_number":138,"box":{"x":69,"y":899,"width":811,"height":11}},{"id":"cd497aea-8232-4a5e-8e26-dda9fc55ae06","block_type":"box","text":"II-103","page_number":138,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"156c752c-43a3-4061-910d-ae948f980e68","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":138,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"e8af328d-d9e1-49fb-85f2-2825f0e8838f","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":139,"box":{"x":68,"y":45,"width":827,"height":11}},{"id":"50b1040c-d099-417e-85ae-5a697e5b129e","block_type":"box","text":"institution; (f) financial intermediaries who have entered into an agreement with the Distributor and have been","page_number":139,"box":{"x":70,"y":60,"width":782,"height":11}},{"id":"8a116c7a-b997-4a93-b455-75bed09b821e","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":139,"box":{"x":69,"y":75,"width":830,"height":11}},{"id":"c3c48d60-5fc3-458b-9373-42c7c49585bf","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":139,"box":{"x":69,"y":90,"width":815,"height":11}},{"id":"fb1659f9-a001-4e7b-b4a1-e363b5d8fde4","block_type":"box","text":"IRAs as permitted under the Internal Revenue Code; (h) with respect to Investor A Shares only, accounts opened","page_number":139,"box":{"x":70,"y":105,"width":799,"height":11}},{"id":"0b11bc7c-16be-414e-aa15-2669191e2d6f","block_type":"box","text":"directly with a Fund that do not have a financial intermediary associated with the account; and (i) persons","page_number":139,"box":{"x":69,"y":120,"width":752,"height":11}},{"id":"0c668179-9268-479a-928c-c9965e020200","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":139,"box":{"x":70,"y":135,"width":836,"height":11}},{"id":"28d6a883-4fae-44f4-971c-6ba36f44f458","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":139,"box":{"x":69,"y":150,"width":812,"height":12}},{"id":"66ba9d85-1ad8-46ca-bf00-f2e87392d408","block_type":"box","text":"Sub-Advisers, Transfer Agent, Distributor, fund accounting agents, Barclays PLC and their affiliates may buy Investor A","page_number":139,"box":{"x":69,"y":166,"width":840,"height":11}},{"id":"26ed17a4-6278-49e1-a861-d96d7a72cff1","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":139,"box":{"x":69,"y":181,"width":788,"height":11}},{"id":"52368a16-3adf-44d0-96fd-11012ecaff94","block_type":"box","text":"including: (a) officers, directors and par tners; (b) employees and retirees; (c) employees or registered representatives","page_number":139,"box":{"x":70,"y":196,"width":838,"height":11}},{"id":"7422610e-c0c5-4a58-9d47-2e84c80ea087","block_type":"box","text":"of firms who have entered into selling agreements to distribute shares of BlackRock-advised funds; (d) immediate","page_number":139,"box":{"x":69,"y":211,"width":810,"height":11}},{"id":"6331045f-5cd1-46c4-83ea-2c678090f7c2","block_type":"box","text":"family members of such persons (“immediate family members” shall be defined as the investor, the investor’s","page_number":139,"box":{"x":68,"y":226,"width":787,"height":11}},{"id":"4242b8ca-9021-41e2-8f65-d28d16dbeb89","block_type":"box","text":"spouse or domestic par tner, children, parents and siblings); and (e) any trust, pension, profit-sharing or other benefit","page_number":139,"box":{"x":69,"y":241,"width":834,"height":11}},{"id":"a7af93d7-f0fa-40a5-a190-8a5985341213","block_type":"box","text":"plan for any of the persons set for th in (a) through (d). Investors who qualify for any of these exemptions from the","page_number":139,"box":{"x":70,"y":256,"width":808,"height":12}},{"id":"7fc29e6e-501b-487b-911a-224236d89ffa","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":139,"box":{"x":69,"y":271,"width":837,"height":12}},{"id":"5bcc0ab6-c067-47ed-8779-289ba16e05ef","block_type":"box","text":"investors exchanging Investor A Shares of one BlackRock Fund for Investor P Shares of another BlackRock Fund, or","page_number":139,"box":{"x":70,"y":286,"width":820,"height":12}},{"id":"494ca636-57f1-471f-9bf9-a880b798ba40","block_type":"box","text":"exchanging Investor P Shares of one BlackRock Fund for Investor A Shares of another BlackRock Fund, through an","page_number":139,"box":{"x":69,"y":302,"width":813,"height":11}},{"id":"d498fcdb-172b-4d48-9941-487668686515","block_type":"box","text":"intermediary-processed exchange, provided that the investor had previously paid a sales charge with respect to such","page_number":139,"box":{"x":70,"y":317,"width":831,"height":11}},{"id":"54508bdc-0256-4862-ac2d-10a265280523","block_type":"box","text":"shares. The availability of Investor A or Investor P Shares sales charge waivers may depend upon the policies,","page_number":139,"box":{"x":69,"y":332,"width":783,"height":11}},{"id":"a4131cfd-50f8-4f0d-97af-709424442e04","block_type":"box","text":"procedures and trading platforms of your financial intermediary; consult your financial adviser.","page_number":139,"box":{"x":70,"y":347,"width":668,"height":11}},{"id":"8080034b-1cd1-4772-97c3-a3e90544fbaf","block_type":"box","text":"If you invest $1,000,000 ($250,000 for BlackRock Dynamic High Income Por tfolio, BlackRock Multi-Asset","page_number":139,"box":{"x":102,"y":369,"width":754,"height":12}},{"id":"d91630e2-74aa-4744-b0a7-9bc01843d4e5","block_type":"box","text":"Income Por tfolio and BlackRock Managed Income Fund of BlackRock Funds II, BlackRock Credit Relative Value Fund","page_number":139,"box":{"x":70,"y":385,"width":823,"height":11}},{"id":"ca88c746-daa3-4865-b7f9-f9dc07114c34","block_type":"box","text":"of BlackRock Funds IV, BlackRock Total Return Fund of BlackRock Bond Fund, Inc., BlackRock Global Allocation Fund,","page_number":139,"box":{"x":69,"y":400,"width":833,"height":10}},{"id":"4a7e1a0a-8354-4cc7-a448-b510db060deb","block_type":"box","text":"Inc., BlackRock National Municipal Fund of BlackRock Municipal Bond Fund, Inc., BlackRock Shor t Duration Muni","page_number":139,"box":{"x":70,"y":415,"width":802,"height":11}},{"id":"6a65031f-9de1-4fad-a5ef-124064222ae0","block_type":"box","text":"Fund of BlackRock Municipal Bond Fund, Inc., BlackRock Strategic Municipal Oppor tunities Fund of BlackRock","page_number":139,"box":{"x":70,"y":430,"width":781,"height":11}},{"id":"d93816c8-87fc-4eec-8728-31453823d1cb","block_type":"box","text":"Municipal Series Trust, BlackRock California Municipal Oppor tunities Fund of BlackRock California Municipal Series","page_number":139,"box":{"x":70,"y":445,"width":819,"height":11}},{"id":"19452122-3a26-45ed-926f-3c3751742d6f","block_type":"box","text":"Trust, BlackRock New York Municipal Oppor tunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock","page_number":139,"box":{"x":68,"y":460,"width":835,"height":12}},{"id":"b63486a1-3124-4467-8784-01e61317cc74","block_type":"box","text":"Pennsylvania Municipal Bond Fund of BlackRock Multi-State Municipal Series Trust, BlackRock Event Driven Equity","page_number":139,"box":{"x":69,"y":475,"width":813,"height":12}},{"id":"4e9b19f1-c56c-48cc-928c-289a71babfb6","block_type":"box","text":"Fund and BlackRock Balanced Fund, Inc., and $500,000 for BlackRock Low Duration Bond Por tfolio, BlackRock","page_number":139,"box":{"x":70,"y":490,"width":792,"height":11}},{"id":"d4b90405-e508-4cbb-9864-ada034d70682","block_type":"box","text":"Floating Rate Income Por tfolio, BlackRock Income Fund and BlackRock Strategic Income Oppor tunities Por tfolio of","page_number":139,"box":{"x":70,"y":506,"width":813,"height":11}},{"id":"c6e83364-75c0-4da8-8f78-8aff8257af7a","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":139,"box":{"x":70,"y":521,"width":837,"height":11}},{"id":"bb053b31-34d3-4a27-9764-faaef1d83f2b","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":139,"box":{"x":70,"y":536,"width":790,"height":11}},{"id":"fdda657f-c27a-4f03-8dc2-8438ed8f1e83","block_type":"box","text":"shor ter holding period may apply depending on the Fund), you may be charged a deferred sales charge.","page_number":139,"box":{"x":69,"y":551,"width":736,"height":11}},{"id":"4dc3d308-23df-45e7-b927-bff0e84138d8","block_type":"box","text":"A deferred sales charge of up to 1.00% may apply to cer tain redemptions of Investor A Shares of the Index","page_number":139,"box":{"x":101,"y":574,"width":763,"height":11}},{"id":"958afb49-2049-40b0-bc6a-ee3b3acb82a5","block_type":"box","text":"Funds and BlackRock Shor t Obligations Fund purchased in an exchange transaction for Investor A Shares of a","page_number":139,"box":{"x":70,"y":589,"width":782,"height":11}},{"id":"195b35d3-93ed-419d-b7fa-92a4b3be5660","block_type":"box","text":"por tfolio advised by BlackRock or its affiliates where no initial sales charge was paid at the time of purchase of such","page_number":139,"box":{"x":70,"y":604,"width":832,"height":11}},{"id":"4daaa4aa-3c95-42a9-ab09-99023b8ecf5b","block_type":"box","text":"fund (an “Investor A Load-Waived BlackRock Por tfolio”) as par t of an investment of $1,000,000 (lesser amounts may","page_number":139,"box":{"x":68,"y":618,"width":839,"height":12}},{"id":"02dd2235-4728-49d5-a5ea-8d9dfc4324b1","block_type":"box","text":"apply depending on the Investor A Load-Waived BlackRock Por tfolio) or more. The Investor A Shares deferred sales","page_number":139,"box":{"x":69,"y":634,"width":817,"height":12}},{"id":"572a1753-5619-46e9-bce2-5ce13214ef7a","block_type":"box","text":"charge is only charged upon redemptions of Investor A Shares within 18 months after you originally acquired such","page_number":139,"box":{"x":69,"y":649,"width":811,"height":12}},{"id":"58b85a74-527e-4f7f-bb23-b3ab3b85ac7d","block_type":"box","text":"Investor A Shares of the Investor A Load-Waived BlackRock Por tfolio (a shor ter holding period may apply depending","page_number":139,"box":{"x":70,"y":664,"width":818,"height":12}},{"id":"2846dbf2-334c-4367-b8c4-89b7c9b9706b","block_type":"box","text":"on the Investor A Load-Waived BlackRock Por tfolio), unless you qualify for a waiver. There is no deferred sales charge","page_number":139,"box":{"x":69,"y":680,"width":836,"height":11}},{"id":"ec432984-8c91-4fb8-8779-03dd8274403a","block_type":"box","text":"charged on redemptions if you have owned your Investor A Shares for more than 18 months (or for a shor ter holding","page_number":139,"box":{"x":69,"y":695,"width":830,"height":11}},{"id":"2467d65e-ae64-4d1f-81b5-51c791d2945f","block_type":"box","text":"period, as applicable) (as measured from your original purchase of Investor A Shares that you exchanged into","page_number":139,"box":{"x":70,"y":710,"width":778,"height":11}},{"id":"d4cc72b9-fbec-4331-9294-13d2c2be11e7","block_type":"box","text":"Investor A Shares of the Index Fund or BlackRock Shor t Obligations Fund).","page_number":139,"box":{"x":70,"y":725,"width":526,"height":11}},{"id":"7420662b-bb09-40af-9525-f1f754bd305e","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":139,"box":{"x":101,"y":748,"width":788,"height":11}},{"id":"9086019e-1cda-4016-a8a7-3b57c8f2bfbe","block_type":"box","text":"(a) redemptions of Investor A or Investor P Shares purchased through cer tain employer-sponsored retirement plans","page_number":139,"box":{"x":69,"y":763,"width":819,"height":11}},{"id":"283dbaca-199b-40b4-83d1-22f00f7f6c4e","block_type":"box","text":"and rollovers of current investments in a Fund through such plans; (b) exchanges described in “Exchange Privilege”","page_number":139,"box":{"x":69,"y":778,"width":820,"height":11}},{"id":"606dd585-8761-476b-8f5f-76472bccafdd","block_type":"box","text":"below; (c) redemptions made in connection with minimum required distributions from IRA and 403(b)(7) accounts due","page_number":139,"box":{"x":69,"y":793,"width":837,"height":11}},{"id":"9fae554d-284c-4cbf-8d21-118cdc0ffdb1","block_type":"box","text":"to the shareholder reaching the applicable age triggering such distributions; (d) redemptions made with respect to","page_number":139,"box":{"x":68,"y":808,"width":812,"height":11}},{"id":"12d69dd5-0f8e-4fe2-84d8-a52c227cb830","block_type":"box","text":"cer tain retirement plans sponsored by a Fund, BlackRock or its affiliates; (e) redemptions (i) within one year of a","page_number":139,"box":{"x":69,"y":823,"width":803,"height":11}},{"id":"bfa8d704-015a-4542-b8c2-a86e85ee306c","block_type":"box","text":"shareholder’s death or, if later, the receipt of a cer tified probate settlement (including in connection with the","page_number":139,"box":{"x":69,"y":838,"width":772,"height":12}},{"id":"793e8217-60c9-4c82-82f7-fbb110f6995b","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":139,"box":{"x":69,"y":853,"width":835,"height":12}},{"id":"f3d198bc-7cc8-46ef-bc32-7a6d2e9a8c4a","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":139,"box":{"x":69,"y":869,"width":814,"height":11}},{"id":"315c25e3-9272-48a1-bcf1-b71149a9ca6e","block_type":"box","text":"Investor A or Investor P Shares in accounts with low balances; (g) cer tain redemptions made pursuant to the","page_number":139,"box":{"x":70,"y":884,"width":772,"height":11}},{"id":"84015687-ac17-4c82-985f-32100b45597d","block_type":"box","text":"Systematic Withdrawal Plan (described below); (h) redemptions related to the payment of BNY Mellon Investment","page_number":139,"box":{"x":69,"y":899,"width":805,"height":11}},{"id":"47ef21d7-bee6-4d8d-88f2-91551eab156c","block_type":"box","text":"II-104","page_number":139,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"e1a52d6a-ac78-4361-9729-801238c03fb6","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":139,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"51529ca0-0df5-4999-9090-5da4dc4690e9","block_type":"box","text":"Servicing Trust Company custodial IRA fees; and (i) redemptions when a shareholder can demonstrate hardship, in","page_number":140,"box":{"x":69,"y":45,"width":817,"height":11}},{"id":"8f6d4df8-6ee5-4838-b154-ba5d1257a726","block_type":"box","text":"the absolute discretion of a Fund.","page_number":140,"box":{"x":68,"y":60,"width":239,"height":9}},{"id":"982dc96f-75f6-4c2d-9f55-c096fc76b8c9","block_type":"box","text":"With respect to cer tain employer-sponsored retirement plans, if a dealer waives its right to receive a placement","page_number":140,"box":{"x":101,"y":82,"width":794,"height":12}},{"id":"8267c0c3-9fb0-4172-b4b2-402fc92b4380","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":140,"box":{"x":68,"y":97,"width":776,"height":12}},{"id":"ecb7e7ce-cec0-4c8f-9c03-fc7025e2d550","block_type":"box","text":"BlackRock Dynamic High Income Por tfolio, BlackRock Multi-Asset Income Por tfolio and BlackRock Managed Income","page_number":140,"box":{"x":70,"y":113,"width":821,"height":11}},{"id":"4495898c-308a-42ce-8c36-cb15a91a3b39","block_type":"box","text":"Fund of BlackRock Funds II, BlackRock Credit Relative Value Fund of BlackRock Funds IV, BlackRock Total Return","page_number":140,"box":{"x":70,"y":128,"width":800,"height":10}},{"id":"302b1cc4-748d-416e-8247-2d4068f0ab6d","block_type":"box","text":"Fund of BlackRock Bond Fund, Inc., BlackRock Global Allocation Fund, Inc., BlackRock National Municipal Fund of","page_number":140,"box":{"x":70,"y":143,"width":806,"height":11}},{"id":"06c6942b-6791-453f-bf69-b49a17004e07","block_type":"box","text":"BlackRock Municipal Bond Fund, Inc., BlackRock Shor t Duration Muni Fund of BlackRock Municipal Bond Fund, Inc.,","page_number":140,"box":{"x":70,"y":158,"width":823,"height":11}},{"id":"39a08801-b0e1-4fd5-82ec-6d8b6da66416","block_type":"box","text":"BlackRock Strategic Municipal Oppor tunities Fund of BlackRock Municipal Series Trust, BlackRock California","page_number":140,"box":{"x":70,"y":173,"width":770,"height":11}},{"id":"d99e8f24-c6db-46c6-823e-5c4d5bb47fca","block_type":"box","text":"Municipal Oppor tunities Fund of BlackRock California Municipal Series Trust, BlackRock New York Municipal","page_number":140,"box":{"x":70,"y":188,"width":766,"height":11}},{"id":"bcc2380f-7a8e-4457-bf9e-6e6a89ba127f","block_type":"box","text":"Oppor tunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock Pennsylvania Municipal Bond Fund of","page_number":140,"box":{"x":69,"y":203,"width":837,"height":12}},{"id":"f981af6c-0483-44bb-894d-2bf7e6d9f516","block_type":"box","text":"BlackRock Multi-State Municipal Series Trust, BlackRock Event Driven Equity Fund and BlackRock Balanced Fund,","page_number":140,"box":{"x":70,"y":219,"width":805,"height":11}},{"id":"29d23ad9-8677-45eb-b92a-261b546ecd3d","block_type":"box","text":"Inc., and $500,000 for BlackRock Low Duration Bond Por tfolio, BlackRock Floating Rate Income Por tfolio, BlackRock","page_number":140,"box":{"x":70,"y":233,"width":832,"height":12}},{"id":"aa75440b-6d5f-432c-bb2a-ed4ef1fecfbb","block_type":"box","text":"Income Fund and BlackRock Strategic Income Oppor tunities Por tfolio of BlackRock Funds V) or more of Investor A or","page_number":140,"box":{"x":70,"y":249,"width":828,"height":11}},{"id":"982c90f0-d62a-4bf6-bef6-dd79e004003d","block_type":"box","text":"Investor P Shares. This may depend upon the policies, procedures and trading platforms of your financial","page_number":140,"box":{"x":70,"y":264,"width":746,"height":11}},{"id":"97f7bef6-d086-4077-bc96-55eb0c17fc2e","block_type":"box","text":"intermediary; consult your financial adviser.","page_number":140,"box":{"x":70,"y":279,"width":307,"height":11}},{"id":"1fe9d48c-8909-45f9-85d4-82ca3d8148e7","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":140,"box":{"x":102,"y":302,"width":799,"height":11}},{"id":"96817545-6deb-435a-bf42-1f19ffd24a55","block_type":"box","text":"to transfer investment positions from a foreign registered investment company advised by BlackRock or its affiliates","page_number":140,"box":{"x":68,"y":317,"width":829,"height":11}},{"id":"64aa0229-d7f4-40e1-a6c8-37d9c8084414","block_type":"box","text":"to a U.S. registered BlackRock-advised fund.","page_number":140,"box":{"x":68,"y":332,"width":317,"height":11}},{"id":"4ed1a485-c204-4e51-a267-5af33294cf04","block_type":"box","text":"Acquisition of Cer tain Investment Companies.","page_number":140,"box":{"x":101,"y":355,"width":326,"height":11}},{"id":"eba6239e-ef8c-4309-a6c9-69d227193b71","block_type":"box","text":"Investor A and Investor P Shares may be offered at NAV in","page_number":140,"box":{"x":434,"y":355,"width":413,"height":11}},{"id":"6c017d9e-7fae-4e27-8753-61c9c68b7c89","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":140,"box":{"x":69,"y":370,"width":811,"height":11}},{"id":"ab0a04df-1015-47e7-a8c8-3830da863515","block_type":"box","text":"public or private investment company.","page_number":140,"box":{"x":70,"y":385,"width":266,"height":11}},{"id":"dccb1274-b773-44b5-ac8c-a32c8b9bdb04","block_type":"box","text":"Purchases Through Cer tain Financial Intermediaries.","page_number":140,"box":{"x":102,"y":408,"width":372,"height":11}},{"id":"9be4a181-1d7d-4a52-9921-5b813e1e4e37","block_type":"box","text":"Reduced sales charges may be applicable for purchases of","page_number":140,"box":{"x":481,"y":407,"width":421,"height":12}},{"id":"dfe48e06-7bd3-49c5-98eb-dd41d910aea3","block_type":"box","text":"Investor A, Investor A1 or Investor P Shares of a Fund through cer tain financial advisers, selected securities dealers","page_number":140,"box":{"x":70,"y":423,"width":825,"height":11}},{"id":"d37cf469-f391-4449-bef6-379683eed084","block_type":"box","text":"and other financial intermediaries that meet and adhere to standards established by the Manager from time to time.","page_number":140,"box":{"x":69,"y":438,"width":830,"height":11}},{"id":"3c4c4b92-257b-4e7f-af04-c177336040a1","block_type":"box","text":"Deferred Sales Charge Alternative — Investor C Shares","page_number":140,"box":{"x":69,"y":468,"width":405,"height":11}},{"id":"bd506d70-fd85-4064-9a5c-c45fdb75ecfb","block_type":"box","text":"Investors choosing the deferred sales charge alternative should consider Investor C Shares if they are uncer tain","page_number":140,"box":{"x":102,"y":491,"width":799,"height":11}},{"id":"4ed6019a-61e9-4e9d-8146-12408256b8e5","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":140,"box":{"x":69,"y":506,"width":828,"height":11}},{"id":"ebb3da84-9139-470c-a165-6b35f84b7aab","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":140,"box":{"x":70,"y":520,"width":778,"height":12}},{"id":"77c829d6-e66e-4660-9572-3f89386d0cf1","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":140,"box":{"x":70,"y":536,"width":826,"height":11}},{"id":"d1814a26-709a-4ae0-a457-7c488b01ade1","block_type":"box","text":"set a lower maximum for Investor C Shares.","page_number":140,"box":{"x":69,"y":551,"width":311,"height":9}},{"id":"8ab7d0ad-7b1c-4ec6-affb-4b2a2b6648d1","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":140,"box":{"x":102,"y":574,"width":789,"height":11}},{"id":"7b96a1d4-c1a3-459a-823a-e0e58d59fdec","block_type":"box","text":"intermediary associated with the account.","page_number":140,"box":{"x":70,"y":589,"width":297,"height":11}},{"id":"c3f0509f-505e-4904-b31e-519257facd0f","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":140,"box":{"x":102,"y":612,"width":669,"height":11}},{"id":"e6b1f426-14fe-4eff-8eb9-e6ebfa493c0d","block_type":"box","text":"The deferred sales charge alternatives may be par ticularly appealing to investors who do not qualify for the","page_number":140,"box":{"x":101,"y":634,"width":763,"height":12}},{"id":"9123890f-c1ea-4485-908e-5729b26d80f4","block_type":"box","text":"reduction in initial sales charges. CDSC shares are subject to ongoing service fees and distribution fees; however,","page_number":140,"box":{"x":69,"y":649,"width":815,"height":12}},{"id":"6ac331fc-55d2-492f-aa0d-d810406d4a37","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":140,"box":{"x":68,"y":664,"width":813,"height":12}},{"id":"7b539a02-ca1b-4f90-89e9-277cdb9ab96e","block_type":"box","text":"CDSC shares.","page_number":140,"box":{"x":69,"y":680,"width":97,"height":9}},{"id":"2b4068ea-c342-4d45-bf10-29956f27d63c","block_type":"box","text":"BlackRock compensates financial advisers and other financial intermediaries for selling CDSC shares at the time","page_number":140,"box":{"x":102,"y":702,"width":804,"height":12}},{"id":"32203b12-6b89-46ee-a19f-a6a318440b50","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":140,"box":{"x":69,"y":717,"width":827,"height":11}},{"id":"523728e2-b6a8-4846-b895-c714fa1f17f2","block_type":"box","text":"used by the Distributor to defray the expenses of securities dealers or other financial intermediaries related to","page_number":140,"box":{"x":69,"y":732,"width":786,"height":12}},{"id":"7c385357-1cb9-48d7-96ed-bcb5935630e1","block_type":"box","text":"providing distribution-related services to each Fund in connection with the sale of the CDSC shares. The combination","page_number":140,"box":{"x":70,"y":748,"width":831,"height":11}},{"id":"026eaa6b-f762-4d44-9907-c162afc92b43","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":140,"box":{"x":69,"y":763,"width":809,"height":11}},{"id":"12c2f29a-4922-4050-80a1-58a1777eaf8b","block_type":"box","text":"sales charge being deducted at the time of purchase. See “Distribution and/or Shareholder Servicing Plans” below.","page_number":140,"box":{"x":69,"y":778,"width":824,"height":11}},{"id":"481bf024-9f18-46d0-adf8-ddcbe9f3186a","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":140,"box":{"x":70,"y":793,"width":822,"height":11}},{"id":"6bbd8a1a-8b29-41e3-9b48-1519e5c39fc6","block_type":"box","text":"sales charge rule. See “Limitations on the Payment of Deferred Sales Charges” below.","page_number":140,"box":{"x":69,"y":808,"width":618,"height":11}},{"id":"434daf4b-170c-449b-8e8d-50260755ad39","block_type":"box","text":"Dealers will generally immediately receive commissions equal to 1.00% of the Investor C Shares sold by them","page_number":140,"box":{"x":102,"y":831,"width":782,"height":11}},{"id":"991dc46a-1131-4435-b28d-cfca59cd4ef0","block_type":"box","text":"plus ongoing fees under the Fund’s Distribution and Service Plan. Dealers may not receive a commission in","page_number":140,"box":{"x":70,"y":846,"width":764,"height":11}},{"id":"8155ba61-7718-4df5-8ddb-d1c86025755f","block_type":"box","text":"connection with sales of Investor C Shares to cer tain employer-sponsored retirement plans sponsored by the Fund,","page_number":140,"box":{"x":69,"y":861,"width":820,"height":11}},{"id":"d0d60d73-d34a-469b-bb82-1ae6e277aae3","block_type":"box","text":"BlackRock or its affiliates, but may receive fees under the Distribution and Service Plan. These commissions and","page_number":140,"box":{"x":70,"y":876,"width":806,"height":11}},{"id":"3fece70d-92ab-4d56-96b1-023e09f01741","block_type":"box","text":"payments may be different than the reallowances, placement fees and commissions paid to dealers in connection","page_number":140,"box":{"x":70,"y":891,"width":813,"height":11}},{"id":"b6ba6d0b-ded5-41cc-9205-83f17e552bf8","block_type":"box","text":"II-105","page_number":140,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"47a809fc-ec9d-4870-b8d1-73b265f29cf4","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":140,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"06640f1f-77c2-4c29-9d79-fd5ad31afa97","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":141,"box":{"x":68,"y":45,"width":811,"height":11}},{"id":"602bcfe5-e897-4c86-9bcd-6f9619e15a12","block_type":"box","text":"trading platforms of your financial intermediary; consult your financial adviser.","page_number":141,"box":{"x":68,"y":60,"width":554,"height":11}},{"id":"f5f30304-3090-4314-b92d-7070931acc6a","block_type":"box","text":"Each Fund has adopted an automatic conversion feature for Investor C Shares. Effective November 23, 2020,","page_number":141,"box":{"x":102,"y":82,"width":783,"height":11}},{"id":"4a4d2bb0-2cb5-4ae4-89cb-6657a52c1f1b","block_type":"box","text":"Investor C Shares held for approximately eight years will be conver ted into Investor A Shares, as set for th in each","page_number":141,"box":{"x":70,"y":98,"width":808,"height":11}},{"id":"660be184-7c1f-451d-834d-ae233bb0a725","block_type":"box","text":"Fund’s Prospectus. In addition, accounts that do not have a financial intermediary associated with them are not","page_number":141,"box":{"x":70,"y":113,"width":797,"height":11}},{"id":"b25d1149-70c9-422e-a5db-8b19fc9d15fa","block_type":"box","text":"eligible to hold Investor C Shares, and any Investor C Shares held in such accounts will be automatically conver ted to","page_number":141,"box":{"x":69,"y":128,"width":837,"height":11}},{"id":"1742a221-3c5f-422a-89ce-91aa6b913724","block_type":"box","text":"Investor A Shares.","page_number":141,"box":{"x":70,"y":143,"width":128,"height":9}},{"id":"7ec474eb-e44b-45d4-bad2-6f469f19c30f","block_type":"box","text":"Conversion of Investor C Shares to Investor A Shares","page_number":141,"box":{"x":102,"y":166,"width":378,"height":9}},{"id":"05705a3e-7d1b-4289-ae44-90e34e38ee4c","block_type":"box","text":"Effective November 23, 2020 (the “Effective Date”), approximately eight years after purchase, Investor C Shares","page_number":141,"box":{"x":102,"y":188,"width":804,"height":12}},{"id":"f544ec70-f43f-40b5-be02-ca6f3e90c7d6","block_type":"box","text":"of each Fund will conver t automatically into Investor A Shares of that Fund (the “Investor C 8-Year Conversion”).","page_number":141,"box":{"x":69,"y":203,"width":794,"height":12}},{"id":"2ccd4615-1c90-4c56-aa8b-0ed52571c408","block_type":"box","text":"Cer tain funds (the “Predecessor Funds”) were reorganized into new Funds (the “Successor Funds”) pursuant to","page_number":141,"box":{"x":69,"y":218,"width":794,"height":12}},{"id":"8b5e86c0-224c-405d-8e35-4d5d33d6fb7f","block_type":"box","text":"reorganizations which occurred in September 2018. The holding period for Investor C Shares of Successor Funds","page_number":141,"box":{"x":69,"y":234,"width":806,"height":11}},{"id":"19cf2c92-425d-4869-bdff-f782c5ee73f7","block_type":"box","text":"includes the period such shares were held in the respective Predecessor Fund. It is the financial intermediary’s","page_number":141,"box":{"x":70,"y":249,"width":793,"height":11}},{"id":"798ac382-0266-4cd0-8f7a-078311c5e698","block_type":"box","text":"responsibility to ensure that the shareholder is credited with the proper holding period. As of the Effective Date,","page_number":141,"box":{"x":69,"y":264,"width":796,"height":11}},{"id":"9f5f2824-c008-41e3-9b45-5a5b99e1c0d5","block_type":"box","text":"cer tain financial intermediaries, including group retirement recordkeeping platforms, may not have been tracking","page_number":141,"box":{"x":69,"y":279,"width":802,"height":11}},{"id":"ddaf7648-9e70-4e97-af9d-8046430cdd40","block_type":"box","text":"such holding periods and therefore may not be able to process such conversions. In such instances, Investor C","page_number":141,"box":{"x":69,"y":294,"width":793,"height":11}},{"id":"8acd4cc3-a922-49d0-b5f8-0e18b58f6cc8","block_type":"box","text":"Shares held as of the Effective Date will automatically conver t to Investor A Shares approximately eight years after","page_number":141,"box":{"x":69,"y":309,"width":817,"height":11}},{"id":"98ee8ffe-617d-47d5-a25a-e19c21fc0932","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":141,"box":{"x":68,"y":324,"width":814,"height":12}},{"id":"8f015ca0-e57c-4144-ab1b-bebb34f64530","block_type":"box","text":"not implemented systems or procedures to track holding periods commencing from the Effective Date, shareholders","page_number":141,"box":{"x":69,"y":339,"width":828,"height":12}},{"id":"121e71b6-b220-4ed2-a665-a3d7e2c29ab8","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":141,"box":{"x":69,"y":355,"width":832,"height":11}},{"id":"b69c87b1-ce08-4552-b4be-57c9fb2f162c","block_type":"box","text":"any such shares will conver t to Investor A Shares as soon as reasonably practicable after such date.","page_number":141,"box":{"x":69,"y":370,"width":718,"height":11}},{"id":"a04258ba-898f-4027-9863-c0d127e86663","block_type":"box","text":"In addition, accounts that do not have a financial intermediary associated with them are not eligible to hold","page_number":141,"box":{"x":102,"y":392,"width":764,"height":12}},{"id":"e09e4609-0f25-4ec6-b70d-62d87af2b330","block_type":"box","text":"Investor C Shares, and any Investor C Shares held in such accounts will be automatically conver ted into Investor A","page_number":141,"box":{"x":70,"y":408,"width":816,"height":11}},{"id":"7047c2ea-3e64-4a3b-8868-c7bfa45c9d48","block_type":"box","text":"Shares (the “Investor C Direct Accounts Conversion” and together with the Investor C 8-Year Conversion, the","page_number":141,"box":{"x":69,"y":423,"width":772,"height":11}},{"id":"1d3ddaf1-9ac7-4f46-8ac9-094d85ce967d","block_type":"box","text":"“Investor C Conversions”).","page_number":141,"box":{"x":70,"y":438,"width":186,"height":11}},{"id":"5bd4ab30-49fa-4706-b8e6-d8d9ecdf3a6c","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":141,"box":{"x":101,"y":460,"width":776,"height":11}},{"id":"aa8998b8-6f71-47a5-90b6-7e617e4d4a3d","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":141,"box":{"x":69,"y":475,"width":824,"height":11}},{"id":"66f844c1-bf82-4133-bf32-3cc3e7fc2fd9","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":141,"box":{"x":70,"y":491,"width":827,"height":11}},{"id":"47de84f4-1e07-4283-8ae6-509fa7472672","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":141,"box":{"x":69,"y":506,"width":833,"height":11}},{"id":"affb7528-3989-418c-932f-39cd24372fbf","block_type":"box","text":"Shares will also conver t automatically to Investor A Shares, as set for th in each Fund’s Prospectus. The Investor C","page_number":141,"box":{"x":69,"y":521,"width":818,"height":11}},{"id":"fa12ba2a-dd2a-4635-9450-3d2cba4ecea4","block_type":"box","text":"Conversion Date for dividend reinvestment shares will be calculated taking into account the length of time the shares","page_number":141,"box":{"x":69,"y":536,"width":836,"height":11}},{"id":"6acf48de-7d7d-4b12-8135-dca3377358ae","block_type":"box","text":"underlying the dividend reinvestment shares were outstanding.","page_number":141,"box":{"x":69,"y":551,"width":445,"height":11}},{"id":"49da18ec-dbfb-4d2e-9940-314aea58caa9","block_type":"box","text":"Contingent Deferred Sales Charge — Investor C Shares","page_number":141,"box":{"x":102,"y":574,"width":396,"height":11}},{"id":"012662b2-c2b9-410c-9bc0-a3037ef7447c","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":141,"box":{"x":102,"y":596,"width":804,"height":12}},{"id":"1abb24f2-7a28-429e-a347-f219e1736d05","block_type":"box","text":"percentage of the dollar amount subject thereto. In determining whether an Investor C Shares CDSC is applicable to","page_number":141,"box":{"x":70,"y":612,"width":826,"height":11}},{"id":"2a06ebc2-3904-4cd9-a251-168e244fb95d","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":141,"box":{"x":69,"y":627,"width":837,"height":11}},{"id":"9bf9913c-8ae3-4aae-b5f3-40298c4d85db","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":141,"box":{"x":68,"y":642,"width":795,"height":11}},{"id":"9fb52efd-41e7-44af-a083-722079d3804a","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":141,"box":{"x":69,"y":657,"width":840,"height":11}},{"id":"179dbf1f-9ad7-48cd-b043-0febf157a38b","block_type":"box","text":"Investor C Shares. In addition, no CDSC will be assessed on Investor C Shares acquired through reinvestment of","page_number":141,"box":{"x":70,"y":672,"width":804,"height":11}},{"id":"0b4139f5-fbca-4a53-9efb-01468ba8aae1","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":141,"box":{"x":69,"y":687,"width":772,"height":11}},{"id":"d371fc94-cca2-464e-a259-2e0c110dfbcb","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":141,"box":{"x":70,"y":702,"width":790,"height":12}},{"id":"56dfa76e-bef9-408b-bd8b-ca666a08243a","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":141,"box":{"x":69,"y":717,"width":776,"height":9}},{"id":"f53e0f84-0d8a-4f2d-ab66-3434b27db4e6","block_type":"box","text":"redemption.","page_number":141,"box":{"x":69,"y":733,"width":83,"height":10}},{"id":"4546551a-d274-4cee-9557-17ba1f1c91d5","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Par t I of each Fund’s SAI for","page_number":141,"box":{"x":102,"y":755,"width":734,"height":11}},{"id":"94920175-a8df-4fd5-ade4-0274b3cfb6d1","block_type":"box","text":"information about amounts paid to the Distributor in connection with CDSC shares for the periods indicated.","page_number":141,"box":{"x":70,"y":770,"width":769,"height":11}},{"id":"595ef44d-b080-4a13-8519-b8a07398965b","block_type":"box","text":"Investor C Shares — Contingent Deferred Sales Charge Waivers and Reductions","page_number":141,"box":{"x":102,"y":793,"width":572,"height":11}},{"id":"51f3d36a-d6cd-463e-a387-a56b59f3ea32","block_type":"box","text":"The CDSC on Investor C Shares is not charged in connection with: (1) redemptions of Investor C Shares","page_number":141,"box":{"x":101,"y":816,"width":740,"height":11}},{"id":"2735f561-8a68-421b-a900-84640938da97","block_type":"box","text":"purchased through cer tain employer-sponsored retirement plans and fee-based programs previously approved by","page_number":141,"box":{"x":70,"y":831,"width":802,"height":11}},{"id":"468ce3f6-d240-4a6d-88fd-738cb08e0538","block_type":"box","text":"cer tain Funds and rollovers of current investments in the Fund through such plans; (2) exchanges described in","page_number":141,"box":{"x":69,"y":846,"width":786,"height":11}},{"id":"07bee730-1a7a-4182-98e4-75e4db324df7","block_type":"box","text":"“Exchange Privilege” below; (3) redemptions made in connection with minimum required distributions due to the","page_number":141,"box":{"x":70,"y":861,"width":797,"height":11}},{"id":"b3ce5d8f-bbe0-4e18-9bde-68fc6e00e18a","block_type":"box","text":"shareholder reaching age 72 from IRA and 403(b)(7) accounts; (4) redemptions made with respect to cer tain","page_number":141,"box":{"x":69,"y":876,"width":776,"height":11}},{"id":"9954891a-4cb6-4796-b586-eae92fe3098f","block_type":"box","text":"retirement plans sponsored by the Fund, BlackRock or its affiliates; (5) redemptions in connection with a","page_number":141,"box":{"x":69,"y":891,"width":747,"height":11}},{"id":"42a97fff-667e-414c-9c1f-53619f94c993","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":141,"box":{"x":69,"y":906,"width":822,"height":12}},{"id":"d9a736f0-b47b-4ebe-a9a2-fd1706d3acbf","block_type":"box","text":"II-106","page_number":141,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"98cfce24-c7d8-45ee-802a-4aab63f6e296","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":141,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"463a173f-d16c-4295-a109-cbbe3c8389ff","block_type":"box","text":"following completion of probate (including in connection with the distribution of account assets to a beneficiary of the","page_number":142,"box":{"x":68,"y":45,"width":836,"height":11}},{"id":"f7266433-6fdd-4492-8308-851ebe0edbd6","block_type":"box","text":"decedent) or disability (as defined in the Code) subsequent to the purchase of Investor C Shares; (6) withdrawals","page_number":142,"box":{"x":69,"y":60,"width":806,"height":11}},{"id":"34659f2d-3ab5-4d3e-97c2-c2b46bb12bda","block_type":"box","text":"resulting from shareholder disability (as defined in the Code) as long as the disability arose subsequent to the","page_number":142,"box":{"x":69,"y":75,"width":786,"height":11}},{"id":"d286d72b-fda7-443e-9a72-ed7e4c9698b4","block_type":"box","text":"purchase of the shares; (7) involuntary redemptions of Investor C Shares in accounts with low balances as described","page_number":142,"box":{"x":70,"y":90,"width":834,"height":11}},{"id":"f3f74ee9-6e7e-48d9-a824-b279b47b33cc","block_type":"box","text":"in “Redemption of Shares” below; (8) redemptions made pursuant to a systematic withdrawal plan, subject to the","page_number":142,"box":{"x":70,"y":105,"width":809,"height":11}},{"id":"24fc916a-0438-4d4b-a68c-1de9553d50b8","block_type":"box","text":"limitations set for th under “Systematic Withdrawal Plan” below; (9) redemptions related to the payment of BNY","page_number":142,"box":{"x":70,"y":120,"width":791,"height":11}},{"id":"35065dee-2aea-471a-af25-adde5ffec0bb","block_type":"box","text":"Mellon Investment Servicing Trust Company custodial IRA fees; and (10) redemptions when a shareholder can","page_number":142,"box":{"x":70,"y":135,"width":784,"height":12}},{"id":"2d914543-275b-4e3c-98fc-3a839ac1f338","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":142,"box":{"x":69,"y":150,"width":824,"height":12}},{"id":"fef44674-2a5c-4800-bc69-3e9ebcc8baaf","block_type":"box","text":"acquired through the reinvestment of dividends or distributions.","page_number":142,"box":{"x":69,"y":166,"width":451,"height":11}},{"id":"3dac5246-b4ad-46f5-874f-45e54fb830d5","block_type":"box","text":"Cer tain CDSC waivers and reductions on Investor C Shares may be available to customers of cer tain financial","page_number":142,"box":{"x":102,"y":188,"width":781,"height":11}},{"id":"1772ba34-c24d-4c09-9f67-fcdaf36da40a","block_type":"box","text":"intermediaries, as described under “Intermediary-Defined Sales Charge Waiver Policies” in the Fund’s Prospectus.","page_number":142,"box":{"x":70,"y":203,"width":813,"height":12}},{"id":"16fe14d8-6f5d-4aa2-8021-d9418e912693","block_type":"box","text":"Please speak to your financial intermediary for more information.","page_number":142,"box":{"x":69,"y":218,"width":462,"height":12}},{"id":"0324219f-d0f3-4ac0-beb4-e7a6dc48e4f1","block_type":"box","text":"Class R Shares","page_number":142,"box":{"x":69,"y":249,"width":110,"height":9}},{"id":"38ea7648-4fcf-48ad-bbc4-f37246d7d780","block_type":"box","text":"Cer tain of the Funds offer Class R Shares as described in each such Fund’s Prospectus. Class R Shares are","page_number":142,"box":{"x":102,"y":271,"width":775,"height":11}},{"id":"902c6b3e-c847-4add-81f8-d98ff533f4f3","block_type":"box","text":"available only to cer tain employer-sponsored retirement plans. Class R Shares are not subject to an initial sales","page_number":142,"box":{"x":69,"y":287,"width":799,"height":11}},{"id":"8f84b1d3-5748-4a2c-abb5-5da954a6dff5","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":142,"box":{"x":69,"y":302,"width":801,"height":11}},{"id":"714ab9a7-2327-431c-819a-7263b6988c69","block_type":"box","text":"0.25% per year. Distribution fees are used to suppor t the Fund’s marketing and distribution effor ts, such as","page_number":142,"box":{"x":69,"y":317,"width":772,"height":11}},{"id":"07cf5d82-80ba-477c-8d73-30f4bd38821d","block_type":"box","text":"compensating financial advisers and other financial intermediaries, adver tising and promotion. Service fees are used","page_number":142,"box":{"x":69,"y":332,"width":836,"height":11}},{"id":"3cf47c81-51c5-4de9-b8e3-1c41efe31a01","block_type":"box","text":"to compensate securities dealers and other financial intermediaries for service activities.","page_number":142,"box":{"x":68,"y":347,"width":636,"height":11}},{"id":"56d9bd2a-db12-4d17-9339-51659ff62fa0","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":142,"box":{"x":102,"y":370,"width":791,"height":11}},{"id":"5af79217-e476-4fd6-92af-bfa4ee7b5f96","block_type":"box","text":"have paid as a shareholder of one of the other share classes.","page_number":142,"box":{"x":69,"y":385,"width":440,"height":11}},{"id":"029c7847-e173-4220-9509-fc5e7cb2bb00","block_type":"box","text":"Class K Shares","page_number":142,"box":{"x":69,"y":415,"width":109,"height":9}},{"id":"a985f47f-2c85-4233-a9d0-c7ac21bdcdbd","block_type":"box","text":"Cer tain Funds offer Class K Shares as described in each such Fund’s Prospectus. Class K Shares are available","page_number":142,"box":{"x":102,"y":438,"width":797,"height":11}},{"id":"0cd1bbfb-02ef-43d6-bb34-00dca2105f48","block_type":"box","text":"only to (i) cer tain employee benefit plans, such as health savings accounts, and cer tain employer-sponsored","page_number":142,"box":{"x":69,"y":453,"width":772,"height":11}},{"id":"e0288712-9094-46be-8fe9-b9e94b455d7f","block_type":"box","text":"retirement plans (not including SEP IRAs, SIMPLE IRAs and SARSEPs) (collectively, “Employer-Sponsored Retirement","page_number":142,"box":{"x":69,"y":468,"width":827,"height":11}},{"id":"b4221541-161a-42b4-9b41-b8a1beb617c2","block_type":"box","text":"Plans”), (ii) collective trust funds, investment companies and other pooled investment vehicles, each of which may","page_number":142,"box":{"x":69,"y":483,"width":817,"height":11}},{"id":"6440b282-1f90-420a-8d5c-7c55edaa18b3","block_type":"box","text":"purchase shares of the Fund through a financial intermediary that has entered into an agreement with the Distributor","page_number":142,"box":{"x":70,"y":498,"width":834,"height":11}},{"id":"6a2ab5d0-4dad-458a-9f6e-1567d2a2152a","block_type":"box","text":"to purchase such shares, (iii) “Institutional Investors,” which include but are not limited to, endowments,","page_number":142,"box":{"x":68,"y":514,"width":748,"height":10}},{"id":"189d0a53-5e17-471d-b7b2-53fad08a9297","block_type":"box","text":"foundations, family offices, banks and bank trusts, local, city, and state governmental institutions, corporations and","page_number":142,"box":{"x":68,"y":528,"width":828,"height":12}},{"id":"4857d6d9-22af-4258-9c5f-523c12a81f95","block_type":"box","text":"insurance company separate accounts, each of which may purchase shares of the Fund through a financial","page_number":142,"box":{"x":70,"y":543,"width":760,"height":12}},{"id":"0cfa2946-4633-4078-a09a-b427f3194e38","block_type":"box","text":"intermediary that has entered into an agreement with the Distributor to purchase such shares, (iv) clients of private","page_number":142,"box":{"x":70,"y":559,"width":823,"height":11}},{"id":"9229ead2-d32c-40b7-884f-db4eb50d8680","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":142,"box":{"x":69,"y":574,"width":836,"height":11}},{"id":"7662f4fc-e975-4dcc-92e0-057b4ec81db6","block_type":"box","text":"Distributor to sell such shares; (v) fee-based advisory platforms of a financial intermediary that (a) has specifically","page_number":142,"box":{"x":70,"y":589,"width":814,"height":11}},{"id":"973d81c6-94db-4afc-8dbe-5332eba6514b","block_type":"box","text":"acknowledged in a written agreement with the Distributor and/or its affiliate(s) that the financial intermediary shall","page_number":142,"box":{"x":69,"y":604,"width":817,"height":11}},{"id":"e232eb8a-b53d-4d44-a6e1-d74fb4c18500","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":142,"box":{"x":69,"y":619,"width":823,"height":11}},{"id":"ca0814aa-12e2-460f-815c-d403f09e6216","block_type":"box","text":"Fund’s shares through another intermediary that has executed such an agreement and (vi) any other investors who","page_number":142,"box":{"x":70,"y":634,"width":818,"height":12}},{"id":"cbf25d9a-3327-4c59-9b35-1382ffcc9183","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":142,"box":{"x":69,"y":649,"width":833,"height":12}},{"id":"37ee01bd-7710-498a-8c4d-3511ea8b50b8","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":142,"box":{"x":69,"y":664,"width":807,"height":12}},{"id":"0596904b-ef71-4b3a-9d6e-7f075b94797e","block_type":"box","text":"agreement referenced in (iv) above shall appear in a supplemental agreement to any selling, sub-transfer agent, or","page_number":142,"box":{"x":69,"y":680,"width":817,"height":11}},{"id":"cb180609-39a7-4828-b160-d7d7ea7f9995","block_type":"box","text":"distribution and marketing agreement.","page_number":142,"box":{"x":69,"y":695,"width":270,"height":11}},{"id":"c858253d-b0c7-4be5-a8c0-d2efb434b1c2","block_type":"box","text":"Class K Shares are also available to employees, officers and directors/trustees of BlackRock, Inc. and","page_number":142,"box":{"x":102,"y":717,"width":734,"height":12}},{"id":"ac8ff6c2-b255-43e2-bfba-e634d773cc78","block_type":"box","text":"BlackRock Funds and immediate family members of such persons, if they open an account directly with BlackRock.","page_number":142,"box":{"x":70,"y":732,"width":817,"height":12}},{"id":"5d68026e-8791-4928-9865-18ec605a6f9c","block_type":"box","text":"Eligible individuals who would like to conver t existing holdings to Class K Shares must contact BlackRock.","page_number":142,"box":{"x":70,"y":748,"width":753,"height":11}},{"id":"fb2dae11-6ac3-482c-942f-563be5e74e72","block_type":"box","text":"Class G Shares","page_number":142,"box":{"x":69,"y":778,"width":110,"height":9}},{"id":"e46d5a96-4d91-4954-a27e-9608254bb63e","block_type":"box","text":"Cer tain Funds offer Class G Shares, which are available only to investors on eligible platforms. Eligible platforms","page_number":142,"box":{"x":102,"y":801,"width":804,"height":11}},{"id":"b805cf26-e435-4785-8753-788546ef4aa6","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":142,"box":{"x":69,"y":816,"width":826,"height":11}},{"id":"4fdce23c-1eb1-46bf-b051-e5935c8022e8","block_type":"box","text":"that meets an initial investment minimum of $2 billion. For clients investing through such eligible platforms, the Fund","page_number":142,"box":{"x":68,"y":830,"width":836,"height":12}},{"id":"161a3a68-9e33-410c-8f7b-19da8d2b280c","block_type":"box","text":"does not impose investment minimums on any individual investor. Financial intermediaries may impose separate","page_number":142,"box":{"x":69,"y":846,"width":803,"height":11}},{"id":"ab0f7345-2a3e-417d-b988-93c78a0ef7fb","block_type":"box","text":"eligibility requirements.","page_number":142,"box":{"x":69,"y":861,"width":164,"height":11}},{"id":"8f1567a6-8203-421a-a6c7-fc7ef2356c77","block_type":"box","text":"II-107","page_number":142,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"5e40bf14-123a-40b6-8fcf-ccfd3a3a090c","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":142,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b8409e1e-ea53-4b08-a244-b5008a3945ea","block_type":"box","text":"Service Shares","page_number":143,"box":{"x":68,"y":45,"width":109,"height":9}},{"id":"c50dee31-d8ed-4a9c-b693-55c0b70a115b","block_type":"box","text":"Cer tain Funds offer Service Shares, which are available only to cer tain investors, including: (i) cer tain financial","page_number":143,"box":{"x":102,"y":67,"width":788,"height":12}},{"id":"e7f3812c-864f-42f3-a59b-29a91154058f","block_type":"box","text":"institutions, such as banks and brokerage firms, acting on behalf of their customers; (ii) cer tain persons who were","page_number":143,"box":{"x":70,"y":82,"width":815,"height":12}},{"id":"0203196f-7567-42e8-8ac9-0acb7aacaf7d","block_type":"box","text":"shareholders of the Compass Capital Group of Funds at the time of its combination with The PNC","page_number":143,"box":{"x":69,"y":98,"width":693,"height":11}},{"id":"978cbc25-a9e4-42ca-85d3-357e291c82c7","block_type":"box","text":"®","page_number":143,"box":{"x":763,"y":98,"width":6,"height":4}},{"id":"22fbff7f-9d3c-4bb1-a5be-16bfc46197b9","block_type":"box","text":"Fund in 1996; and","page_number":143,"box":{"x":775,"y":98,"width":130,"height":10}},{"id":"717c8b44-8c36-4cea-96a4-32fb7d1a576a","block_type":"box","text":"(iii) par ticipants in the Capital Directions","page_number":143,"box":{"x":69,"y":113,"width":287,"height":11}},{"id":"16b3d3b7-3881-4730-9171-acb74c3cb82b","block_type":"box","text":"SM","page_number":143,"box":{"x":357,"y":113,"width":11,"height":5}},{"id":"23cc2a66-9db1-408c-b871-95a7fbaddc6b","block_type":"box","text":"asset allocation program. Service Shares are not subject to an initial sales","page_number":143,"box":{"x":374,"y":113,"width":534,"height":11}},{"id":"4b0c13ae-822d-40c6-af9c-acf2a8202f5a","block_type":"box","text":"charge or a CDSC but are subject to an ongoing service fee as set for th in the applicable Fund’s Prospectus.","page_number":143,"box":{"x":69,"y":128,"width":776,"height":11}},{"id":"0cc6df18-f2d0-4470-9811-f776a358641c","block_type":"box","text":"BlackRock Shares","page_number":143,"box":{"x":69,"y":158,"width":133,"height":9}},{"id":"648fbe86-2443-4bb8-8e8d-f3551502553e","block_type":"box","text":"Cer tain Funds offer BlackRock Shares, which are available only to cer tain investors. BlackRock Shares are","page_number":143,"box":{"x":102,"y":181,"width":760,"height":11}},{"id":"63b776b0-b03b-4d71-a818-c63204687778","block_type":"box","text":"offered without a sales charge to institutional and individual investors, registered investment advisers and cer tain","page_number":143,"box":{"x":69,"y":196,"width":813,"height":11}},{"id":"8c457926-8775-4c09-bb43-6a16ddab1f0b","block_type":"box","text":"fee-based programs.","page_number":143,"box":{"x":68,"y":211,"width":145,"height":11}},{"id":"dd9e0ce9-b5d8-46f3-8871-0bd725710392","block_type":"box","text":"Distribution and/or Shareholder Servicing Plans","page_number":143,"box":{"x":69,"y":241,"width":348,"height":11}},{"id":"a2a8d4b1-9802-41a4-9171-9c8435156f86","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":143,"box":{"x":102,"y":264,"width":790,"height":11}},{"id":"076d566c-11cc-480f-9af1-a2a9c19268d8","block_type":"box","text":"respect to cer tain share classes that allows the Fund to pay distribution fees for the sale of its shares and","page_number":143,"box":{"x":69,"y":279,"width":761,"height":11}},{"id":"df88e285-c0a7-48d3-b4fc-014170375081","block_type":"box","text":"shareholder servicing fees for cer tain services provided to its shareholders.","page_number":143,"box":{"x":69,"y":294,"width":541,"height":11}},{"id":"e79c9ff7-3ffb-4ccc-bc2f-760cd284bb8d","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":143,"box":{"x":102,"y":317,"width":803,"height":11}},{"id":"d30c5f26-eab2-4cc9-8107-220c77fe28ea","block_type":"box","text":"BlackRock, fees for distribution and sales suppor t services with respect to Investor A, Investor A1, Investor C,","page_number":143,"box":{"x":70,"y":332,"width":783,"height":11}},{"id":"171dc5fe-1fe6-4d9c-8502-6bec7dd51a3a","block_type":"box","text":"Investor P, Service and Class R Shares. Currently, as described fur ther below, only Investor C and Class R Shares","page_number":143,"box":{"x":70,"y":347,"width":809,"height":11}},{"id":"a0d7cb12-c712-4f54-b537-37b37e18c6f2","block_type":"box","text":"bear the expense of distribution fees under a Plan.","page_number":143,"box":{"x":69,"y":362,"width":360,"height":11}},{"id":"d0e4e8bf-0b54-4c0c-85d3-52a1a9f4533e","block_type":"box","text":"Each Fund has entered into a distribution agreement with BRIL under which BRIL, as agent, offers shares of","page_number":143,"box":{"x":102,"y":385,"width":770,"height":11}},{"id":"af4c621f-a772-47dc-994f-05062d59f75d","block_type":"box","text":"each Fund on a continuous basis. BRIL has agreed to use appropriate effor ts to effect sales of the shares, but it is","page_number":143,"box":{"x":69,"y":400,"width":824,"height":11}},{"id":"1869662a-1804-443f-9d78-5925ccf21e01","block_type":"box","text":"not obligated to sell any par ticular amount of shares. BRIL’s principal business address is 50 Hudson Yards, New","page_number":143,"box":{"x":69,"y":415,"width":812,"height":11}},{"id":"e1a875e6-2294-43a0-bf6b-d5843688bdc7","block_type":"box","text":"York, NY 10001. BRIL is an affiliate of BlackRock.","page_number":143,"box":{"x":68,"y":430,"width":355,"height":11}},{"id":"9de09998-6dda-4b10-9ebb-0327428b122e","block_type":"box","text":"Pursuant to the Plans, each Fund may also pay shareholder servicing fees (also referred to as general","page_number":143,"box":{"x":102,"y":453,"width":727,"height":11}},{"id":"5bf046d9-069f-40d4-9c15-f3ffbfac8bc2","block_type":"box","text":"shareholder liaison services fees) to affiliated and unaffiliated brokers, dealers, financial institutions, insurance","page_number":143,"box":{"x":69,"y":468,"width":799,"height":11}},{"id":"f66542e4-557a-487f-a085-39b0f3ef292d","block_type":"box","text":"companies, retirement plan record-keepers and other financial intermediaries (including BlackRock, BRIL and their","page_number":143,"box":{"x":69,"y":483,"width":813,"height":11}},{"id":"0cc474ba-cfef-48d7-8638-9e37ba4f4d33","block_type":"box","text":"affiliates) (collectively, “Service Organizations”) for cer tain suppor t services rendered by Service Organizations to","page_number":143,"box":{"x":69,"y":498,"width":809,"height":11}},{"id":"d4c10258-7ea4-4336-86b7-36625900b61b","block_type":"box","text":"their customers (“Customers”) who are the beneficial owners of Investor A, Investor A1, Investor C, Investor P,","page_number":143,"box":{"x":68,"y":513,"width":786,"height":11}},{"id":"ea5b1b99-09de-470c-b8ed-d4e151089d20","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":143,"box":{"x":69,"y":528,"width":789,"height":12}},{"id":"a61d8455-ed72-40eb-8d3f-771e4f16d38d","block_type":"box","text":"Fund’s Administrators and Transfer Agent to the Fund’s shareholders of record.","page_number":143,"box":{"x":70,"y":543,"width":562,"height":12}},{"id":"bf1bb37e-3029-4964-800f-e5161d369981","block_type":"box","text":"The suppor t services provided by Service Organizations are general shareholder liaison services, which include,","page_number":143,"box":{"x":101,"y":566,"width":798,"height":11}},{"id":"20b22fc4-44a3-4a5f-818c-1d5c5efc3045","block_type":"box","text":"but are not limited to: (i) answering Customer inquiries regarding account status and history, the manner in which","page_number":143,"box":{"x":69,"y":581,"width":808,"height":12}},{"id":"ae4d9ad0-41e9-46d4-89f8-9a64e1935367","block_type":"box","text":"purchases, exchanges and redemptions or repurchases of shares may be effected and cer tain other matters","page_number":143,"box":{"x":70,"y":596,"width":776,"height":12}},{"id":"ea25f90d-29ee-400e-b99a-0672913623b3","block_type":"box","text":"per taining to the Customers’ investments; and (ii) assisting Customers in designating and changing dividend options,","page_number":143,"box":{"x":70,"y":612,"width":835,"height":11}},{"id":"3d665c75-54ea-4d31-b9f2-4ed63c1353e7","block_type":"box","text":"account designations and addresses. The shareholder servicing fees payable pursuant to the Plans are paid to","page_number":143,"box":{"x":69,"y":627,"width":791,"height":11}},{"id":"89c20947-1a8a-48d5-933b-9392b552cede","block_type":"box","text":"compensate Service Organizations for the administration and servicing of shareholder accounts and are not costs","page_number":143,"box":{"x":69,"y":642,"width":813,"height":11}},{"id":"ef8f10d5-843d-4fde-a419-d01d73cb5eab","block_type":"box","text":"which are primarily intended to result in the sale of the Fund’s shares.","page_number":143,"box":{"x":68,"y":657,"width":501,"height":11}},{"id":"b53d4856-044c-4bbe-b470-4223d43d8ce6","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":143,"box":{"x":102,"y":680,"width":783,"height":11}},{"id":"537d1b36-fdd9-4cd9-ba15-9aeb814cbdc9","block_type":"box","text":"the applicable share class regardless of the amount of expenses incurred. As a result, payments under the Plans","page_number":143,"box":{"x":68,"y":695,"width":810,"height":11}},{"id":"76f1d536-78ed-4fee-8beb-a57ec15d863a","block_type":"box","text":"may be more or less than expenses incurred in connection with providing distribution and/or shareholder services","page_number":143,"box":{"x":69,"y":710,"width":813,"height":11}},{"id":"f887b7d5-4e3d-4fc9-9435-17e72a533a84","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":143,"box":{"x":68,"y":725,"width":836,"height":11}},{"id":"7a467ded-ca8f-4fe6-a8d5-d2ddd5988ac6","block_type":"box","text":"providing services with respect to the related class is presented to the Directors for their consideration quar terly.","page_number":143,"box":{"x":70,"y":740,"width":805,"height":11}},{"id":"dc2d0785-baf6-4454-beb1-97a1826cbb15","block_type":"box","text":"Payments under the Plans consist of the shareholder servicing fees and the distribution fees. Expenses with respect","page_number":143,"box":{"x":69,"y":755,"width":832,"height":11}},{"id":"3930dca4-9761-4c1f-9335-52afb4606d85","block_type":"box","text":"to providing distribution and/or shareholder services with respect to a class may consist of Service Organization","page_number":143,"box":{"x":68,"y":770,"width":803,"height":12}},{"id":"d41c5c1b-4e19-46a7-bb5c-a4a4338f2b33","block_type":"box","text":"financial adviser compensation, branch office and regional operation center selling and transaction processing","page_number":143,"box":{"x":68,"y":785,"width":788,"height":12}},{"id":"f5c0e212-6902-42bb-b256-b5ff81d91d19","block_type":"box","text":"expenses, adver tising, sales promotion and marketing expenses. Payments under the Plans with respect to one","page_number":143,"box":{"x":69,"y":801,"width":798,"height":11}},{"id":"acb840ed-c4fc-4348-a4ea-2ff196ac91a1","block_type":"box","text":"class will not be used to finance the expenditures of another class. Sales personnel may receive different","page_number":143,"box":{"x":69,"y":816,"width":755,"height":11}},{"id":"bc710f89-5029-4dc9-bb1b-aa42c0fda01b","block_type":"box","text":"compensation for selling different classes of shares.","page_number":143,"box":{"x":69,"y":831,"width":375,"height":11}},{"id":"5b6ea4e9-76b8-4183-8e12-d6eb2692de90","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":143,"box":{"x":102,"y":853,"width":803,"height":12}},{"id":"920a8b3e-ad68-407a-b3b2-b3efbd6061c0","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":143,"box":{"x":69,"y":869,"width":839,"height":11}},{"id":"63869724-9690-42c0-ad3a-7cfac3ab547e","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":143,"box":{"x":68,"y":884,"width":788,"height":11}},{"id":"0ee360b1-2af1-4c69-bc30-b5cb286fa580","block_type":"box","text":"interested Directors concluded that there is reasonable likelihood that the Plan will benefit the Fund and its related","page_number":143,"box":{"x":70,"y":899,"width":818,"height":9}},{"id":"789c351c-a01a-40b4-b28f-e41affa03e9d","block_type":"box","text":"II-108","page_number":143,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"39bc312b-4fdb-42cf-be01-55ee609f2ef8","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":143,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"95ee95f9-e07b-4925-b157-18e53ebced11","block_type":"box","text":"class of shareholders. The Plan provides, among other things, that: (i) the Board of Directors shall receive quar terly","page_number":144,"box":{"x":69,"y":45,"width":824,"height":11}},{"id":"a7914ed6-d118-49fa-871f-70f7820e2e11","block_type":"box","text":"repor ts regarding the amounts expended under the Plan and the purposes for which such expenditures were made;","page_number":144,"box":{"x":69,"y":60,"width":821,"height":11}},{"id":"f88d9147-422f-4bfc-875e-2147b40f4df9","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":144,"box":{"x":69,"y":75,"width":778,"height":11}},{"id":"66892abb-d04d-4b5d-8fce-afa547b55a46","block_type":"box","text":"Directors, including the directors who are not “interested persons” of the Fund (as defined in the Investment","page_number":144,"box":{"x":70,"y":90,"width":773,"height":11}},{"id":"7f274005-aedb-4b5c-a120-4341909f94c5","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":144,"box":{"x":69,"y":105,"width":796,"height":11}},{"id":"2790cd94-1691-4ded-9360-a1e837843fb1","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":144,"box":{"x":69,"y":120,"width":837,"height":12}},{"id":"38869663-9421-4bab-a584-f82c88f0db88","block_type":"box","text":"in accordance with Rule 12b-1 under the Investment Company Act; (iii) any material amendment thereto must be","page_number":144,"box":{"x":70,"y":135,"width":801,"height":11}},{"id":"467cb5c1-15ab-49df-9772-6fa20247fac6","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":144,"box":{"x":69,"y":150,"width":787,"height":12}},{"id":"cf6bb3c1-d0eb-408c-8bbc-8777a9a68860","block_type":"box","text":"purpose; (iv) any amendment to increase materially the costs which any class of shares may bear for distribution","page_number":144,"box":{"x":70,"y":166,"width":802,"height":11}},{"id":"d23f4e50-1006-4dc4-895f-602e1933a3ac","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":144,"box":{"x":69,"y":181,"width":826,"height":11}},{"id":"7ab8330c-0cf3-465b-b579-832bc4ee4eaf","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":144,"box":{"x":69,"y":196,"width":836,"height":11}},{"id":"712bf6a4-1e63-430c-bbb8-3220b89d7aab","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":144,"box":{"x":69,"y":211,"width":836,"height":11}},{"id":"3e7482b6-b804-46e9-9a6d-57e380bdab69","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":144,"box":{"x":68,"y":226,"width":792,"height":11}},{"id":"cfad45c3-995d-4958-a03c-494d64037748","block_type":"box","text":"Directors. Rule 12b-1 fur ther requires that each Fund preserve copies of each Plan and any repor t made pursuant to","page_number":144,"box":{"x":70,"y":241,"width":831,"height":11}},{"id":"df754756-1cc3-4c86-a317-efe5d0356815","block_type":"box","text":"such Plan for a period of not less than six years from the date of the Plan or such repor t, the first two years in an","page_number":144,"box":{"x":69,"y":256,"width":807,"height":11}},{"id":"f3beb3a1-aa33-4f5b-aa65-a35dcce5b63e","block_type":"box","text":"easily accessible place.","page_number":144,"box":{"x":69,"y":272,"width":167,"height":11}},{"id":"3927019a-ae90-490b-b543-0270a112c59e","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":144,"box":{"x":102,"y":294,"width":804,"height":11}},{"id":"87730c42-16c3-4832-be7c-59e9454ca97e","block_type":"box","text":"Directors, or by vote of the holders of a majority of the shares of such class.","page_number":144,"box":{"x":70,"y":309,"width":542,"height":11}},{"id":"8547f394-6338-4629-9a0f-c4f09465fc1c","block_type":"box","text":"See “Information on Sales Charges and Distribution Related Expenses” in Par t I of each Fund’s SAI for","page_number":144,"box":{"x":102,"y":332,"width":734,"height":11}},{"id":"14c3d6da-0ea1-4713-9cba-9822daa7e03c","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":144,"box":{"x":70,"y":347,"width":814,"height":11}},{"id":"9386c5d4-eaa9-49fb-b839-133e752f36af","block_type":"box","text":"fiscal year.","page_number":144,"box":{"x":68,"y":362,"width":75,"height":11}},{"id":"fd116e62-b1e3-4d14-a0f1-c63f9ab4e1b8","block_type":"box","text":"Limitations on the Payment of Deferred Sales Charges","page_number":144,"box":{"x":69,"y":392,"width":396,"height":11}},{"id":"55c809ca-aaa2-4fae-9474-148809116595","block_type":"box","text":"The maximum sales charge rule in the Conduct Rules of the Financial Industry Regulatory Authority (“FINRA”)","page_number":144,"box":{"x":101,"y":415,"width":777,"height":11}},{"id":"cb116a10-c324-4a1c-a3d5-3bda7864e45e","block_type":"box","text":"imposes a limitation on cer tain asset-based sales charges such as the distribution fee borne by Class R Shares, and","page_number":144,"box":{"x":70,"y":430,"width":835,"height":11}},{"id":"51053467-2884-4189-8897-66f2394fa89d","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":144,"box":{"x":68,"y":445,"width":822,"height":11}},{"id":"794a9735-a2c3-4ca3-9b22-e38a2b830865","block_type":"box","text":"servicing fee. The maximum sales charge rule is applied separately to each class and limits the aggregate of","page_number":144,"box":{"x":69,"y":460,"width":778,"height":12}},{"id":"d7558cb8-d8a1-4024-a095-32882ec5f108","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":144,"box":{"x":69,"y":475,"width":840,"height":12}},{"id":"7ff7b122-deb5-4cff-96d5-481bd3cfb830","block_type":"box","text":"Shares, computed separately (excluding shares issued pursuant to dividend reinvestments and exchanges), plus","page_number":144,"box":{"x":69,"y":491,"width":803,"height":11}},{"id":"c15cd219-af68-4641-b12f-8ebcbc3b2a9a","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":144,"box":{"x":69,"y":506,"width":794,"height":11}},{"id":"b5f18643-ed0c-4e6b-a9d1-7cf3546dbaad","block_type":"box","text":"unpaid balance being the maximum amount payable minus amounts received from the payment of the distribution fee","page_number":144,"box":{"x":69,"y":521,"width":839,"height":11}},{"id":"cd96821a-6ac3-4296-b723-84190e1dd09e","block_type":"box","text":"and the CDSC). See “Information on Sales Charges and Distribution Related Expenses” in Par t I of each Fund’s SAI","page_number":144,"box":{"x":69,"y":536,"width":824,"height":11}},{"id":"330e14fc-2bf6-4c1b-88fb-899dc472f603","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":144,"box":{"x":68,"y":551,"width":839,"height":11}},{"id":"f3b85e51-2acb-4628-8e88-316fbeafd24a","block_type":"box","text":"and Class R Shares of your Fund.","page_number":144,"box":{"x":69,"y":566,"width":236,"height":11}},{"id":"c97b4f13-532f-46aa-ad9b-7229bb7927e6","block_type":"box","text":"Other Payments by the Fund","page_number":144,"box":{"x":69,"y":597,"width":206,"height":11}},{"id":"582abbbb-98b7-4964-a26e-50638879ef21","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":144,"box":{"x":102,"y":619,"width":800,"height":11}},{"id":"c4713201-e4a5-41eb-a6f5-cfd5c8062f6f","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":144,"box":{"x":68,"y":634,"width":816,"height":12}},{"id":"bef8650a-41f7-469f-90af-a31a2b9cff8c","block_type":"box","text":"Service Organizations pursuant to which the Fund will pay a Service Organization for administrative, networking,","page_number":144,"box":{"x":69,"y":649,"width":794,"height":12}},{"id":"66f87fd8-66e0-450d-9d75-4d092ab5b217","block_type":"box","text":"recordkeeping, sub-transfer agency, sub-accounting and/or shareholder services. These non-Plan payments are","page_number":144,"box":{"x":69,"y":664,"width":792,"height":12}},{"id":"2342848f-eb50-423e-b389-3b826dd5a706","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":144,"box":{"x":68,"y":680,"width":841,"height":11}},{"id":"f5dcf72e-39c5-4790-9c4e-ec52c79b9406","block_type":"box","text":"Organization or (2) a fixed dollar amount for each account serviced by a Service Organization. The aggregate amount","page_number":144,"box":{"x":69,"y":695,"width":831,"height":11}},{"id":"cb25ceb2-08bb-4a9b-b2fb-cfd3f42ed34a","block_type":"box","text":"of these payments may be substantial.","page_number":144,"box":{"x":69,"y":710,"width":276,"height":11}},{"id":"09a1e21f-41ed-42bf-b7ee-8e9aa61edbf3","block_type":"box","text":"Additional Payments by BlackRock","page_number":144,"box":{"x":68,"y":740,"width":256,"height":11}},{"id":"009423de-6b6c-4cb1-9ae0-4ab273eb1afa","block_type":"box","text":"From time to time, BlackRock, BRIL and/or their affiliates (referred to in this section collectively as “BlackRock”)","page_number":144,"box":{"x":102,"y":763,"width":803,"height":11}},{"id":"b94ab6fe-6a9e-4c97-a423-eb2cf302485f","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":144,"box":{"x":69,"y":778,"width":823,"height":11}},{"id":"982c00b4-e7e0-470d-8151-bb5c115e1183","block_type":"box","text":"its shareholders and/or for data provision or technology suppor t. A Service Organization may per form these","page_number":144,"box":{"x":70,"y":793,"width":768,"height":11}},{"id":"4fd4c89f-6b75-478d-aa29-6cd97b5b853d","block_type":"box","text":"obligations itself or may arrange for a third par ty to per form them. These payments, which are not made pursuant to","page_number":144,"box":{"x":69,"y":808,"width":830,"height":11}},{"id":"371c736a-c50f-443c-a393-0b568a9f5c03","block_type":"box","text":"a Plan or otherwise paid by a Fund, are referred to as “Additional Payments” herein.","page_number":144,"box":{"x":69,"y":823,"width":599,"height":11}},{"id":"a0a6c105-0d92-4427-bd98-4ed948157555","block_type":"box","text":"Additional Payments are made from BlackRock’s own assets (which may come directly or indirectly from fees","page_number":144,"box":{"x":101,"y":846,"width":776,"height":11}},{"id":"fe06addc-e0d4-43b5-9abe-eea9133fff7c","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":144,"box":{"x":70,"y":861,"width":832,"height":11}},{"id":"a1c67ad4-9fff-42f3-8caa-ebfcb7f863c5","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":144,"box":{"x":69,"y":876,"width":833,"height":11}},{"id":"d83545ee-66e0-46df-890b-d153bce68c1e","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":144,"box":{"x":69,"y":891,"width":802,"height":11}},{"id":"78082f82-e428-4fdc-9673-cc135f4de396","block_type":"box","text":"Service Organizations are in addition to any distribution or shareholder servicing fees paid under any Plan of any","page_number":144,"box":{"x":69,"y":906,"width":802,"height":12}},{"id":"2841cafb-a5e7-40b9-870a-8d2470d3e79f","block_type":"box","text":"II-109","page_number":144,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"247aaf11-5e0f-4d3f-9ea4-03dba01eb8a7","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":144,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"bebff4e6-129d-43ca-b9a0-a4a1171092ba","block_type":"box","text":"Fund, any sales charges, commissions or other concessions described in the Prospectuses or this SAI, and any","page_number":145,"box":{"x":70,"y":45,"width":796,"height":11}},{"id":"9a7fb3ec-0e04-404c-b9cc-bcc7e51b9e96","block_type":"box","text":"administrative, networking, recordkeeping, sub-transfer agency or sub-accounting fees payable by a Fund. Pursuant to","page_number":145,"box":{"x":69,"y":60,"width":836,"height":11}},{"id":"ad56fbb3-d567-4605-8e15-963efb138d33","block_type":"box","text":"applicable FINRA regulations, the details of cer tain of these payments, including the Service Organizations receiving","page_number":145,"box":{"x":69,"y":75,"width":828,"height":11}},{"id":"6402950b-eb7e-4300-abea-b8a3c11ea29d","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":145,"box":{"x":69,"y":90,"width":837,"height":11}},{"id":"1aaf4f3e-9bae-46d8-9a00-97af09883bf5","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":145,"box":{"x":69,"y":105,"width":818,"height":11}},{"id":"bfb325fa-0fb3-40c2-8c28-6e5a17cae6c2","block_type":"box","text":"BlackRock may pay out of its own assets.","page_number":145,"box":{"x":70,"y":120,"width":294,"height":11}},{"id":"4d0ae614-3e35-4112-aabf-ae3c5cd5307c","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":145,"box":{"x":101,"y":143,"width":803,"height":11}},{"id":"07f9575e-ac03-495e-9d48-4a3800f08394","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":145,"box":{"x":69,"y":158,"width":792,"height":11}},{"id":"edf3c86b-02b6-49b4-b60c-9e4d8eaad2b2","block_type":"box","text":"Customers of the Service Organization involved, or may be calculated on another basis.","page_number":145,"box":{"x":69,"y":173,"width":623,"height":11}},{"id":"e4c9a70e-82e1-4f98-9290-d5deab96b83d","block_type":"box","text":"BlackRock negotiates Additional Payments with each Service Organization on an individual basis. Additional","page_number":145,"box":{"x":102,"y":196,"width":765,"height":11}},{"id":"7b09a5ae-ea69-4b52-9dc4-aa7626b497c8","block_type":"box","text":"Payments may be different for different Service Organizations, and some Service Organizations may be paid pursuant","page_number":145,"box":{"x":69,"y":211,"width":841,"height":11}},{"id":"0274b39c-841b-47b6-9ad4-a721b73e9972","block_type":"box","text":"to more than one of the calculations described above. Not all Service Organizations receive Additional Payments.","page_number":145,"box":{"x":68,"y":226,"width":806,"height":11}},{"id":"ad204432-17ba-483f-957f-94ce22953a9c","block_type":"box","text":"Sales-based payments primarily create incentives to make new sales of shares of the Fund, and asset-based","page_number":145,"box":{"x":69,"y":241,"width":776,"height":11}},{"id":"7df90228-3099-42cd-876b-d8e014334701","block_type":"box","text":"payments primarily create incentives to retain previously sold shares of the Fund. The level of payments made to","page_number":145,"box":{"x":70,"y":256,"width":802,"height":11}},{"id":"49d62294-61df-4e26-a41f-0e245692bcdc","block_type":"box","text":"these Service Organizations in any year will vary and may be limited to specific Funds or share classes. In cer tain","page_number":145,"box":{"x":68,"y":271,"width":811,"height":12}},{"id":"b693a4a8-3ffd-45c7-9965-99c80ca22e87","block_type":"box","text":"cases, these payments may be subject to cer tain minimum payment levels.","page_number":145,"box":{"x":69,"y":287,"width":538,"height":11}},{"id":"77deee2c-70da-4c40-8233-7706abc37133","block_type":"box","text":"The aggregate amount of Additional Payments made by BlackRock may be substantial and may be significant to","page_number":145,"box":{"x":101,"y":309,"width":795,"height":11}},{"id":"b2b981b0-83f8-4b80-b584-36940be9a164","block_type":"box","text":"cer tain Service Organizations. The categories of Additional Payments listed below are not mutually exclusive. The","page_number":145,"box":{"x":69,"y":324,"width":807,"height":12}},{"id":"c33b71eb-5d30-40a2-81ed-b8773a3002b1","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":145,"box":{"x":69,"y":339,"width":823,"height":12}},{"id":"df87f13c-264a-4519-aad5-f55b5b32f7c6","block_type":"box","text":"Additional Payments. Such payments may be different for different Service Organizations and for different types of","page_number":145,"box":{"x":68,"y":355,"width":819,"height":11}},{"id":"f3021e7e-6538-4a95-970b-cb678800ca5e","block_type":"box","text":"Funds.","page_number":145,"box":{"x":70,"y":370,"width":44,"height":9}},{"id":"ff28e594-3727-45c1-8d8f-ada735ca7a8e","block_type":"box","text":"A. Distribution and Marketing Suppor t","page_number":145,"box":{"x":101,"y":392,"width":270,"height":12}},{"id":"183617c2-ca7d-4731-9e1e-7be3f4920959","block_type":"box","text":"Additional Payments may be made by BlackRock for distribution and marketing suppor t activities. These","page_number":145,"box":{"x":101,"y":415,"width":740,"height":11}},{"id":"3e78ec5d-1572-4127-ae91-c629ed439020","block_type":"box","text":"payments may take the form of, among other things, “due diligence” payments for a Service Organization’s","page_number":145,"box":{"x":70,"y":430,"width":764,"height":11}},{"id":"37f33868-2577-4e7e-b7fc-509d9203f869","block_type":"box","text":"examination of a Fund; payments for providing extra employee training and information relating to a Fund; fees for","page_number":145,"box":{"x":69,"y":445,"width":811,"height":12}},{"id":"aa0e36ef-87dd-435e-b1a2-7e9d92b3cecc","block_type":"box","text":"access (in some cases on a preferential basis) to the Service Organization’s registered representatives,","page_number":145,"box":{"x":69,"y":460,"width":742,"height":12}},{"id":"4178d4d7-7bd5-499e-9a19-bbf6aa8fc216","block_type":"box","text":"salespersons or other personnel, including at sales meetings and conferences; “shelf space” payments for placing","page_number":145,"box":{"x":69,"y":475,"width":820,"height":12}},{"id":"24fa4ae9-f771-4060-ac81-e490e26f7f8a","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":145,"box":{"x":68,"y":491,"width":829,"height":11}},{"id":"e4d36bec-0b96-40bd-80aa-45995ff3a3d5","block_type":"box","text":"may be a preferred or recommended list) of mutual funds available for purchase by its Customers or in cer tain sales","page_number":145,"box":{"x":69,"y":506,"width":830,"height":11}},{"id":"7b01c746-9855-4957-9fd6-5f3bb3c5eba0","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":145,"box":{"x":70,"y":521,"width":803,"height":11}},{"id":"7708ea5d-24eb-4ff0-9589-d44b819ca6b9","block_type":"box","text":"include promotions in communications with the Service Organization’s Customers, registered representatives,","page_number":145,"box":{"x":70,"y":536,"width":783,"height":11}},{"id":"3fdb5b88-cace-475a-a8fc-1c56ec97f35c","block_type":"box","text":"salespersons and/or other personnel); payments for the sale of shares and/or the maintenance of share balances;","page_number":145,"box":{"x":69,"y":551,"width":823,"height":11}},{"id":"cd6dfb55-6c85-4316-953b-366cfbf7b8cf","block_type":"box","text":"transaction fees (also referred to as “ticket charges”); and payments for infrastructure suppor t. These payments","page_number":145,"box":{"x":68,"y":566,"width":805,"height":11}},{"id":"dbc47b6b-2a9a-4e94-bf39-1af5bafbe218","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":145,"box":{"x":69,"y":581,"width":828,"height":12}},{"id":"5a551d91-6bb6-4a87-8b39-671c8a57afcd","block_type":"box","text":"of the assets attributable to that Service Organization invested in a Fund.","page_number":145,"box":{"x":69,"y":596,"width":523,"height":12}},{"id":"a85016eb-2deb-4366-a6d5-b7d869b9fbd6","block_type":"box","text":"B. Shareholder Services","page_number":145,"box":{"x":102,"y":619,"width":172,"height":9}},{"id":"825bf60f-e047-4ff4-8f23-b5c8ef85b44c","block_type":"box","text":"Many Fund shares are owned or held by Service Organizations for the benefit of their Customers. In these","page_number":145,"box":{"x":102,"y":642,"width":754,"height":11}},{"id":"8cb09b37-c35e-4f3d-a21e-79c5cdd8228d","block_type":"box","text":"situations, a Fund may not maintain accounts in the name of the Customers and Service Organizations may per form","page_number":145,"box":{"x":69,"y":657,"width":830,"height":11}},{"id":"0c064eb1-16c8-44b3-94c2-7fc6c5243a59","block_type":"box","text":"some of the functions for these Customers’ accounts that the Transfer Agent would have per formed if the accounts","page_number":145,"box":{"x":69,"y":672,"width":823,"height":11}},{"id":"10f6fc68-99d0-4485-ab96-5189f75544f5","block_type":"box","text":"had been in the Customers’ names on the Fund’s books. Such services include sub-accounting services, shareholder","page_number":145,"box":{"x":69,"y":687,"width":839,"height":11}},{"id":"5e89bc28-6513-4b4a-b0a8-9d9313dd8363","block_type":"box","text":"servicing and transaction processing services and are sometimes referred to as “recordkeeping,” “sub-transfer","page_number":145,"box":{"x":69,"y":702,"width":796,"height":12}},{"id":"e02f290d-cbc8-4552-8fed-e173415ef7ad","block_type":"box","text":"agency,” “sub-accounting,” “networking” and/or “administrative” services. Additional Payments may exceed amounts","page_number":145,"box":{"x":69,"y":718,"width":837,"height":11}},{"id":"67a694ea-6213-4ea8-89b0-84cdd80bc5b1","block_type":"box","text":"that would be earned on these assets by the Transfer Agent for the per formance of these or similar services. These","page_number":145,"box":{"x":68,"y":732,"width":828,"height":12}},{"id":"e1e27d35-f814-429a-803d-8c9c49e63db0","block_type":"box","text":"Additional Payments made by BlackRock are in addition to any transfer agent, shareholder servicing and transaction","page_number":145,"box":{"x":68,"y":748,"width":827,"height":11}},{"id":"e6c208bc-e9e7-4e45-93c6-308ca73b6728","block_type":"box","text":"processing fees paid by a Fund, as applicable.","page_number":145,"box":{"x":70,"y":763,"width":328,"height":11}},{"id":"4c73d91e-3228-45cd-bb9f-bec72eb61993","block_type":"box","text":"C. Data Provision and Technology Suppor t","page_number":145,"box":{"x":102,"y":786,"width":299,"height":11}},{"id":"cc72f746-3a52-461b-a5ea-60ce52e58b88","block_type":"box","text":"BlackRock may make Additional Payments to Service Organizations for the provision of cer tain analytical or other","page_number":145,"box":{"x":102,"y":808,"width":805,"height":11}},{"id":"ba3e0701-281b-42a1-b2a4-b143eaa11f83","block_type":"box","text":"data services relating to the Funds, such as statistical information regarding sales of the Funds, or technology","page_number":145,"box":{"x":69,"y":823,"width":788,"height":12}},{"id":"da70a299-dfce-46a1-9112-d422df0f3355","block_type":"box","text":"suppor t. Such Additional Payments are generally made as a fixed dollar amount, and not based on assets or sales.","page_number":145,"box":{"x":69,"y":838,"width":821,"height":12}},{"id":"8476ffd3-40d3-4172-9f38-7c9d4f7d1780","block_type":"box","text":"D. Service Organizations Receiving Additional Payments","page_number":145,"box":{"x":102,"y":861,"width":397,"height":11}},{"id":"ed98f99c-7e39-4929-91f8-c4e37aa3e8c3","block_type":"box","text":"As of the date of this SAI, the Service Organizations listed below, and, in some cases, cer tain of the Service","page_number":145,"box":{"x":101,"y":884,"width":774,"height":11}},{"id":"894fc644-c8ca-4d25-a0e2-f31772194c36","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":145,"box":{"x":69,"y":899,"width":831,"height":11}},{"id":"d7fa1fe6-f7b4-4cc6-be9b-9834405a959c","block_type":"box","text":"II-110","page_number":145,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"b19380b3-6daa-4044-8903-037050b63b41","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":145,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"fbb70368-fe3e-44a4-bab0-6be0585ccb5d","block_type":"box","text":"and BlackRock may pay Service Organizations or their affiliates additional types of Additional Payments in the future.","page_number":146,"box":{"x":69,"y":45,"width":832,"height":11}},{"id":"d5835b9d-d607-459d-bad5-54f68fb585f8","block_type":"box","text":"Please contact your Service Organization to determine whether it or its affiliate currently may be receiving such","page_number":146,"box":{"x":69,"y":60,"width":791,"height":11}},{"id":"cfdd6dc6-6e82-4c28-9271-af45bc12c2e9","block_type":"box","text":"payments and to obtain fur ther information regarding any such payments.","page_number":146,"box":{"x":70,"y":75,"width":523,"height":11}},{"id":"80f3249b-870b-41af-9c21-ed7530b652b2","block_type":"box","text":"&Par tners","page_number":146,"box":{"x":69,"y":106,"width":71,"height":9}},{"id":"d89c937a-bb7e-4fcc-9979-5bb2431b363c","block_type":"box","text":"AccuTech Systems Corporation","page_number":146,"box":{"x":68,"y":127,"width":219,"height":11}},{"id":"72cd1124-88bd-4a43-b000-4905a2956f24","block_type":"box","text":"ADP Broker-Dealer, Inc.","page_number":146,"box":{"x":68,"y":147,"width":164,"height":10}},{"id":"9e989427-8922-4a74-8025-0dc6502d8360","block_type":"box","text":"Advisor Credit Exchange, LLC","page_number":146,"box":{"x":68,"y":167,"width":207,"height":11}},{"id":"a13cbac2-d88a-466f-a58e-9406f219f3b0","block_type":"box","text":"Advisor Group, 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The value of shares of each Fund at the time of redemption may be more or less than your cost at the","page_number":150,"box":{"x":69,"y":98,"width":818,"height":11}},{"id":"1520582d-b972-4826-8aa3-5ba3a49810f9","block_type":"box","text":"time of purchase, depending in par t on the market value of the securities held by the Fund at such time. Except for","page_number":150,"box":{"x":68,"y":113,"width":821,"height":11}},{"id":"b661f799-600a-411a-bab3-89e665eeb751","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":150,"box":{"x":69,"y":128,"width":815,"height":11}},{"id":"8d42d0b1-62b2-4736-8992-364fafc304d0","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":150,"box":{"x":68,"y":143,"width":812,"height":11}},{"id":"ee1161ba-f96e-479e-8253-f550162f245a","block_type":"box","text":"redemption.","page_number":150,"box":{"x":69,"y":158,"width":83,"height":11}},{"id":"fb619280-962a-455b-a4f1-ee20267db95d","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":150,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"b660e2e7-9ff0-44ec-a2c8-9fde0311aa0e","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":150,"box":{"x":69,"y":196,"width":835,"height":11}},{"id":"7b1c79a9-e0da-430f-a134-b20de49ea48f","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":150,"box":{"x":68,"y":211,"width":811,"height":11}},{"id":"d7776c86-9632-442d-9d80-f7641d72df57","block_type":"box","text":"emergency exists, as defined by the Commission, as a result of which disposal of por tfolio securities or","page_number":150,"box":{"x":69,"y":226,"width":741,"height":11}},{"id":"7707ce82-d058-4950-9c7b-c8853dd9ca27","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":150,"box":{"x":69,"y":241,"width":813,"height":11}},{"id":"4708d92d-f3ac-4c3d-b777-e9b2a18e94ca","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":150,"box":{"x":69,"y":256,"width":787,"height":11}},{"id":"86c28686-4cca-4475-838e-2bc1b07dab2b","block_type":"box","text":"recordation of the transfer of its shares upon the occurrence of any of the foregoing conditions.)","page_number":150,"box":{"x":69,"y":271,"width":685,"height":12}},{"id":"b7a3b0f0-89b4-407d-8d66-eed72fa9de8d","block_type":"box","text":"Each Fund, with other investment companies advised by the Manager, has entered into a joint committed line of","page_number":150,"box":{"x":102,"y":294,"width":798,"height":11}},{"id":"76d7656b-b364-40f5-8cbf-131761c03827","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":150,"box":{"x":69,"y":309,"width":820,"height":11}},{"id":"8c19f3ef-2b25-48d6-b881-0f7907bbc21a","block_type":"box","text":"meet redemption requests from shareholders in extraordinary or emergency circumstances.","page_number":150,"box":{"x":69,"y":324,"width":653,"height":12}},{"id":"08dafb73-2d3c-42f9-a6f1-4bb52f436662","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":150,"box":{"x":102,"y":347,"width":803,"height":11}},{"id":"90283270-3521-41f8-89ef-d03d208e7968","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":150,"box":{"x":69,"y":362,"width":827,"height":11}},{"id":"beb1f875-60a3-4c4a-97b9-b543d5b5d4a4","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":150,"box":{"x":68,"y":377,"width":824,"height":12}},{"id":"c782770d-8b8b-4a0a-98ec-446890a057ff","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":150,"box":{"x":70,"y":392,"width":825,"height":12}},{"id":"b94beaa3-743e-4bdf-a829-649fee73201b","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":150,"box":{"x":69,"y":407,"width":825,"height":12}},{"id":"3873de26-d8a3-44a4-9e1d-be7b7841a817","block_type":"box","text":"so redeemed shall have no fur ther right with respect thereto other than to receive payment of the redemption price.","page_number":150,"box":{"x":69,"y":423,"width":823,"height":11}},{"id":"8747fc0f-ac81-414c-ad71-abe5ced42917","block_type":"box","text":"Redemption","page_number":150,"box":{"x":69,"y":453,"width":86,"height":11}},{"id":"22510411-89f5-44b6-9b7a-bc7fd9dea2e0","block_type":"box","text":"Investor A, Investor A1, Investor C, Institutional and Class R Shares","page_number":150,"box":{"x":70,"y":476,"width":481,"height":10}},{"id":"b025d1f5-fb07-4fae-a9bb-1664ed0e0c7d","block_type":"box","text":"Redeem by Telephone:","page_number":150,"box":{"x":102,"y":498,"width":162,"height":11}},{"id":"65e991a5-19c1-40d7-bf72-641cb726510f","block_type":"box","text":"You may sell Investor Shares, excluding Investor P Shares, held at BlackRock by","page_number":150,"box":{"x":270,"y":498,"width":571,"height":11}},{"id":"5e93d4fb-d36b-4589-af2a-2cd52280f8cb","block_type":"box","text":"telephone request if cer tain conditions are met and if the amount being sold is less than (i) $100,000 for payments","page_number":150,"box":{"x":68,"y":513,"width":829,"height":12}},{"id":"205e44c7-d704-4282-bf54-7d363353e72f","block_type":"box","text":"by check or (ii) $250,000 for payments through the Automated Clearing House Network (“ACH”) or wire transfer.","page_number":150,"box":{"x":69,"y":528,"width":798,"height":12}},{"id":"61876b9b-df7c-4de5-8552-092a210a116c","block_type":"box","text":"Cer tain redemption requests, such as those in excess of these amounts, and those where (i) the Fund does not have","page_number":150,"box":{"x":69,"y":543,"width":838,"height":12}},{"id":"fefd3a6f-b599-42a0-bb1e-7e53a7e83675","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":150,"box":{"x":68,"y":559,"width":831,"height":11}},{"id":"a1d32a19-0b61-4515-bf2d-5b9b52fb5891","block_type":"box","text":"be in writing with a medallion signature guarantee provided by any “eligible guarantor institution” as defined in Rule","page_number":150,"box":{"x":69,"y":574,"width":822,"height":11}},{"id":"8926fad2-cf94-4d61-8963-3879a3cffbfb","block_type":"box","text":"17Ad-15 under the Securities Exchange Act of 1934 (the “Exchange Act”), whose existence and validity may be","page_number":150,"box":{"x":70,"y":589,"width":791,"height":11}},{"id":"81afc030-1bf1-431f-89de-56e31c7c96b7","block_type":"box","text":"verified by the Transfer Agent through the use of industry publications. For Institutional Shares, cer tain redemption","page_number":150,"box":{"x":68,"y":604,"width":818,"height":11}},{"id":"2054651a-8083-4b98-8dc7-1d12d050da67","block_type":"box","text":"requests may require written instructions with a medallion signature guarantee. Call (800) 441-7762 for details. You","page_number":150,"box":{"x":69,"y":619,"width":829,"height":11}},{"id":"c41ba460-6285-47bf-a518-d072bd8e934d","block_type":"box","text":"can obtain a medallion signature guarantee stamp from a bank, securities dealer, securities broker, credit union,","page_number":150,"box":{"x":69,"y":634,"width":803,"height":12}},{"id":"431b23c6-f0aa-4540-912d-e762a839ee40","block_type":"box","text":"savings and loan association, national securities exchange or registered securities association. The three recognized","page_number":150,"box":{"x":69,"y":650,"width":834,"height":11}},{"id":"0e3bd80f-8ec7-4423-93e8-a46b1ea11f92","block_type":"box","text":"medallion programs are Securities Transfer Agent Medallion Program, Stock Exchanges Medallion Program and New","page_number":150,"box":{"x":69,"y":664,"width":825,"height":12}},{"id":"c6feb001-0599-4842-9865-74688ae4f37f","block_type":"box","text":"York Stock Exchange, Inc. Medallion Signature Program. Signature guarantees which are not a par t of these programs","page_number":150,"box":{"x":68,"y":680,"width":840,"height":11}},{"id":"86745212-5ea8-4046-84f1-7674e180dcc4","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":150,"box":{"x":68,"y":695,"width":835,"height":11}},{"id":"aad7223a-4ea0-45a4-80ac-b57ef63d57a5","block_type":"box","text":"required signature guarantee is all that is required for a redemption. In some cases, however, other documents may","page_number":150,"box":{"x":69,"y":710,"width":828,"height":11}},{"id":"77be876a-ec58-4361-b394-f184f5d92001","block_type":"box","text":"be necessary. Additional documentary evidence of authority is required by the Transfer Agent in the event redemption","page_number":150,"box":{"x":69,"y":725,"width":835,"height":11}},{"id":"772388b5-2051-4384-b896-3f6350820aba","block_type":"box","text":"is requested by a corporation, par tnership, trust, fiduciary, executor or administrator.","page_number":150,"box":{"x":70,"y":740,"width":603,"height":11}},{"id":"65bfde46-b1b0-42be-a318-bfabbeb05c3c","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":150,"box":{"x":102,"y":763,"width":774,"height":11}},{"id":"bdc27008-d623-4baf-80ca-73621671e85f","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":150,"box":{"x":69,"y":778,"width":795,"height":11}},{"id":"72b996ea-ed7a-4748-b9c0-31ff6aebe089","block_type":"box","text":"Distributor will employ reasonable procedures to confirm that instructions communicated by telephone are genuine.","page_number":150,"box":{"x":70,"y":793,"width":821,"height":11}},{"id":"200a0816-50f4-4d48-9e1f-b074dc9266be","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":150,"box":{"x":68,"y":808,"width":823,"height":11}},{"id":"3f08600e-6f95-4975-9d1f-60e535a7d7a7","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":150,"box":{"x":69,"y":823,"width":823,"height":11}},{"id":"41d9ff85-785e-4757-8744-8a48b45f75c7","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":150,"box":{"x":69,"y":838,"width":809,"height":11}},{"id":"d9d978ca-683b-4c90-8f2f-0e5515703b68","block_type":"box","text":"divorced, (vi) the address on the account has changed within the last 30 days or share cer tificates have been issued","page_number":150,"box":{"x":69,"y":853,"width":833,"height":12}},{"id":"899cc3dd-6e12-4df8-8eb9-1ded0dad84e2","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":150,"box":{"x":69,"y":869,"width":821,"height":11}},{"id":"99d13e02-38df-460a-ada6-ce689830ed72","block_type":"box","text":"address registered on the account and the social security number registered on the account. The Fund and its","page_number":150,"box":{"x":69,"y":884,"width":785,"height":11}},{"id":"087bfabc-bac8-44ac-871c-b1fdce3be46a","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":150,"box":{"x":69,"y":899,"width":820,"height":11}},{"id":"1d478975-46e1-486a-a92b-2ee28557990d","block_type":"box","text":"II-115","page_number":150,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"a20c59cb-7fd6-443f-8da3-05d2ce4f5cac","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":150,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ed7c2b77-5c75-4434-b27e-760f6fb16fad","block_type":"box","text":"are reasonably believed to be genuine in accordance with such procedures. Before telephone requests will be","page_number":151,"box":{"x":69,"y":45,"width":782,"height":11}},{"id":"feadb8bd-8f3e-4b44-bf69-a19a45cb4893","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":151,"box":{"x":69,"y":60,"width":838,"height":11}},{"id":"7da653ff-b2ba-48a1-ab11-c616242eefde","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":151,"box":{"x":68,"y":75,"width":837,"height":11}},{"id":"ddc7b1ca-9a95-45d3-a1b0-476c10fdb2c9","block_type":"box","text":"change, telephone redemptions may be difficult to complete. Please find below alternative redemption methods.","page_number":151,"box":{"x":69,"y":90,"width":800,"height":11}},{"id":"261c49b7-d2e6-4ae4-b29f-34eda7316ab6","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":151,"box":{"x":102,"y":113,"width":776,"height":11}},{"id":"54ca8702-1d91-427c-9628-09eb5f7af889","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":151,"box":{"x":70,"y":128,"width":823,"height":11}},{"id":"d03399b4-a0f3-44e3-8637-1e501c04a8b7","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":151,"box":{"x":69,"y":143,"width":820,"height":11}},{"id":"34f6a119-0db0-4494-87eb-41ee687821bf","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":151,"box":{"x":68,"y":158,"width":826,"height":11}},{"id":"11e69d57-4ac0-4ebf-9c1e-1ac2bc4d650e","block_type":"box","text":"the redemption order will be accepted and processed the next succeeding business day when the Federal Reserve","page_number":151,"box":{"x":68,"y":173,"width":817,"height":11}},{"id":"29c7b2d8-4c55-4f89-b27f-f4007c2eec51","block_type":"box","text":"Bank of Philadelphia is open, provided that the Fund’s custodian is also open for business.","page_number":151,"box":{"x":70,"y":188,"width":648,"height":11}},{"id":"a8d1639c-108c-4c25-bdce-66a46c545eb6","block_type":"box","text":"Redeem by VRU:","page_number":151,"box":{"x":102,"y":211,"width":120,"height":11}},{"id":"6d7271bb-2584-4998-b55e-2847725e1a25","block_type":"box","text":"Investor class shares, excluding Investor P Shares, may also be redeemed by use of a Fund’s","page_number":151,"box":{"x":229,"y":211,"width":667,"height":11}},{"id":"0ef8383f-740f-4f29-a81d-eea48993a9e5","block_type":"box","text":"automated voice response unit service (“VRU”). Payment for Investor class shares redeemed by VRU may be made","page_number":151,"box":{"x":69,"y":226,"width":820,"height":11}},{"id":"ba865f5f-1527-47e2-898a-cfea6f5f1a8e","block_type":"box","text":"for non-retirement accounts in amounts up to $25,000, either through check, ACH or wire.","page_number":151,"box":{"x":68,"y":241,"width":644,"height":11}},{"id":"9706170c-9e26-4863-a86a-cdc4bdc95569","block_type":"box","text":"Redeem by Internet:","page_number":151,"box":{"x":102,"y":264,"width":147,"height":11}},{"id":"0c3fcbd8-77bf-4e57-8829-6aef8acb4b90","block_type":"box","text":"Cer tain Investor and Institutional class shares may also be redeemed by logging onto the","page_number":151,"box":{"x":255,"y":264,"width":637,"height":11}},{"id":"35d7964b-1f58-4828-ad87-8c6db2451de0","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":151,"box":{"x":70,"y":279,"width":836,"height":11}},{"id":"a942843f-813a-4509-9ff2-37068d949cfb","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":151,"box":{"x":68,"y":294,"width":823,"height":11}},{"id":"e090feb9-0075-45c4-a29c-46178f77e4b7","block_type":"box","text":"to $100,000 per account per day, either through check, ACH or wire. Different maximums may apply to cer tain","page_number":151,"box":{"x":68,"y":309,"width":789,"height":11}},{"id":"fc20acc5-a1c8-4073-b135-e47aef1c3d56","block_type":"box","text":"institutional investors.","page_number":151,"box":{"x":70,"y":325,"width":155,"height":8}},{"id":"8568064d-c820-494f-afc5-3188380f6d4e","block_type":"box","text":"Redeem in Writing:","page_number":151,"box":{"x":102,"y":347,"width":137,"height":11}},{"id":"7c154f51-9d98-4da9-a564-047b65702f68","block_type":"box","text":"If you hold shares with the Transfer Agent you may redeem such shares without charge by","page_number":151,"box":{"x":247,"y":347,"width":639,"height":11}},{"id":"2cb67e6b-3763-421e-9be7-4f09cf978d46","block_type":"box","text":"writing to BlackRock, P.O. Box 534429, Pittsburgh, Pennsylvania 15253-4429. Redemption requests delivered other","page_number":151,"box":{"x":68,"y":362,"width":831,"height":11}},{"id":"f29dd067-79c2-4705-9504-899aad28448d","block_type":"box","text":"than by mail should be sent to BlackRock, Attention: 534429, 1350 Penn Avenue Suite 102, Pittsburgh,","page_number":151,"box":{"x":68,"y":377,"width":745,"height":12}},{"id":"49e05de7-f347-4063-bac4-953373091b02","block_type":"box","text":"Pennsylvania 15222. If you hold share cer tificates issued by your Fund, the letter must be accompanied by","page_number":151,"box":{"x":69,"y":392,"width":764,"height":12}},{"id":"47d34c99-51c4-4a00-aa80-d8249d828a95","block_type":"box","text":"cer tificates for the shares. All shareholders on the account must sign the letter. A medallion signature guarantee will","page_number":151,"box":{"x":69,"y":407,"width":831,"height":12}},{"id":"131f0366-84b9-4dac-81e5-b8403f327af3","block_type":"box","text":"generally be required but may be waived in cer tain limited circumstances. You can obtain a medallion signature","page_number":151,"box":{"x":68,"y":423,"width":794,"height":11}},{"id":"1f844030-5b4f-4962-a7f3-9d8a53044e27","block_type":"box","text":"guarantee stamp from a bank, securities dealer, securities broker, credit union, savings and loan association,","page_number":151,"box":{"x":68,"y":438,"width":782,"height":11}},{"id":"a6382a47-585e-4772-93c5-ab8dfb0258e9","block_type":"box","text":"national securities exchange or registered securities association. A notary public seal will not be acceptable. If you","page_number":151,"box":{"x":69,"y":453,"width":817,"height":11}},{"id":"436791db-4d97-474a-ab52-a034e373b8e0","block_type":"box","text":"hold stock cer tificates, return the cer tificates with the letter. Proceeds from redemptions may be sent via check, ACH","page_number":151,"box":{"x":69,"y":468,"width":836,"height":11}},{"id":"ca51707e-7739-4b36-a4c2-ab7ea7075057","block_type":"box","text":"or wire to the bank account of record.","page_number":151,"box":{"x":69,"y":483,"width":266,"height":9}},{"id":"49958dee-9856-479c-a770-f275e57a36f7","block_type":"box","text":"Redemptions of Investor P Shares, Service Shares, Class G Shares, Class K Shares and BlackRock Shares may","page_number":151,"box":{"x":102,"y":506,"width":802,"height":11}},{"id":"c4434ee1-2030-4229-aeb1-18b591241f39","block_type":"box","text":"be made in the manner and amounts described in the Prospectuses.","page_number":151,"box":{"x":69,"y":521,"width":489,"height":11}},{"id":"5119c8d3-782b-401a-8709-3ac5e48bff63","block_type":"box","text":"The Funds or the Transfer Agent may temporarily suspend telephone transactions at any time.","page_number":151,"box":{"x":101,"y":543,"width":668,"height":12}},{"id":"f18f1aa9-c2c4-47ad-952d-198813d48aed","block_type":"box","text":"If you redeem shares directly with the Transfer Agent, payments will generally be mailed within one business day","page_number":151,"box":{"x":102,"y":566,"width":800,"height":11}},{"id":"c44de781-a168-4d38-ae23-4e1a8e7c5359","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":151,"box":{"x":69,"y":581,"width":838,"height":12}},{"id":"c8d37053-4b69-4127-bfbe-af28134b2574","block_type":"box","text":"(that is, cash, Federal funds or cer tified check drawn on a U.S. bank) has been collected for the purchase of Fund","page_number":151,"box":{"x":69,"y":596,"width":811,"height":11}},{"id":"4ba712a1-6dec-4d3e-b615-4ed292e33ee7","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":151,"box":{"x":69,"y":612,"width":789,"height":11}},{"id":"f11c8367-5ae9-4eb1-b763-60551c648e35","block_type":"box","text":"contains a fractional share balance following a redemption, the fractional share balance will be automatically","page_number":151,"box":{"x":69,"y":627,"width":775,"height":11}},{"id":"ffd0da90-9a88-4f33-b159-bcc74b725390","block_type":"box","text":"redeemed by the Fund.","page_number":151,"box":{"x":69,"y":642,"width":162,"height":11}},{"id":"0d490d92-b9b7-4926-90a8-78261d6ad784","block_type":"box","text":"Note on Low Balance Accounts.","page_number":151,"box":{"x":102,"y":665,"width":223,"height":8}},{"id":"1c5ea2ba-c2d9-4649-affc-4da3a18cdc17","block_type":"box","text":"Because of the high cost of maintaining smaller shareholder accounts,","page_number":151,"box":{"x":332,"y":664,"width":503,"height":12}},{"id":"f6085a54-51e0-4e45-9d2e-c6608b3800f4","block_type":"box","text":"BlackRock has set a minimum balance of $500 in each Fund position you hold within your account (“Fund","page_number":151,"box":{"x":70,"y":679,"width":752,"height":12}},{"id":"1ce798a6-b3f7-4f8f-ba4f-088fad8ef53f","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":151,"box":{"x":70,"y":694,"width":829,"height":12}},{"id":"3e3c6103-7686-4e7a-9306-b6d0061d480c","block_type":"box","text":"for any reason, including market fluctuation.","page_number":151,"box":{"x":68,"y":710,"width":313,"height":11}},{"id":"8db52600-09c3-4fcc-b547-7b675580f0e7","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":151,"box":{"x":101,"y":732,"width":775,"height":12}},{"id":"0c5db03e-fade-4e4a-95b0-2594d3c39665","block_type":"box","text":"involuntary redemption. This notification will provide you with a 90 calendar day period to make an additional","page_number":151,"box":{"x":70,"y":748,"width":773,"height":11}},{"id":"4a95fa37-5a88-4de2-836b-bed67c5112b7","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":151,"box":{"x":70,"y":762,"width":776,"height":12}},{"id":"e43a9fc3-0560-4272-aeea-1153ad5d929a","block_type":"box","text":"redemption. This involuntary redemption will not charge any deferred sales charge, and may not apply to accounts of","page_number":151,"box":{"x":69,"y":778,"width":834,"height":11}},{"id":"324859e1-bbeb-427b-b36e-68f6758f3b0c","block_type":"box","text":"cer tain employer-sponsored retirement plans (not including IRAs), qualified state tuition plan (529 Plan) accounts,","page_number":151,"box":{"x":69,"y":793,"width":811,"height":11}},{"id":"dc794d1c-32dc-4023-a7b7-baebdf4bc601","block_type":"box","text":"and select fee-based programs at your financial intermediary.","page_number":151,"box":{"x":69,"y":808,"width":435,"height":11}},{"id":"7491de33-aabf-408a-b1d3-63b23cea9d7b","block_type":"box","text":"Redemptions in Kind:","page_number":151,"box":{"x":102,"y":831,"width":153,"height":11}},{"id":"d24b2212-ae10-44cb-8d1b-347996a7de81","block_type":"box","text":"Each Fund reserves the right to honor any request for redemption by making payment in","page_number":151,"box":{"x":263,"y":831,"width":624,"height":11}},{"id":"471d2d71-6ec3-473f-b192-b6a3f6846e7d","block_type":"box","text":"whole or in par t by delivering securities valued in the same way as they would be valued for purposes of computing a","page_number":151,"box":{"x":68,"y":846,"width":833,"height":11}},{"id":"e0425c62-a928-4fae-9172-f267d9e66f80","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":151,"box":{"x":70,"y":860,"width":825,"height":12}},{"id":"b376c4ca-6b62-4bc9-bbe4-9057a41f78ab","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":151,"box":{"x":69,"y":876,"width":811,"height":11}},{"id":"a6bce3a6-bf66-4e1d-9846-8f3de96ddc66","block_type":"box","text":"normally be paid in cash but may be paid wholly or par tly by a distribution in kind of securities.","page_number":151,"box":{"x":69,"y":891,"width":672,"height":11}},{"id":"3350f10f-44de-4a78-ae24-62b3cd8c9b3e","block_type":"box","text":"II-116","page_number":151,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"f63c92b6-466a-40e2-85e0-de7446a88489","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":151,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"dc1ac174-5a55-48b0-a88c-a59d2126e172","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":152,"box":{"x":101,"y":45,"width":787,"height":11}},{"id":"8baf7982-7f54-41b7-abe4-e975d58978b1","block_type":"box","text":"rata representation of the Fund’s por tfolio or a non-pro-rata representation of the Fund’s por tfolio depending upon","page_number":152,"box":{"x":69,"y":60,"width":812,"height":11}},{"id":"66328fdf-27c5-4bb2-92b1-d9c31b8cde78","block_type":"box","text":"various circumstances and subject to the Funds’ policies and procedures and any applicable laws or regulations. In","page_number":152,"box":{"x":68,"y":75,"width":822,"height":11}},{"id":"0ac9172d-b57e-4629-9163-7cd7763f3f8b","block_type":"box","text":"effecting such redemption in kind, the Manager may select securities to distribute to the redeeming shareholder by","page_number":152,"box":{"x":69,"y":90,"width":822,"height":11}},{"id":"ff316a4c-e78d-4e0c-8468-fffd23e7b731","block_type":"box","text":"considering cer tain factors, including, without limitation, the por tfolio management team’s model or optimal por tfolio,","page_number":152,"box":{"x":69,"y":105,"width":838,"height":11}},{"id":"26793d5b-874b-4245-9155-7c07ba94bd34","block_type":"box","text":"risk management considerations, compliance considerations, the active positioning of a Fund post-redemption, the","page_number":152,"box":{"x":69,"y":120,"width":818,"height":12}},{"id":"dac5fe50-f576-4c8a-9574-096700107142","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":152,"box":{"x":70,"y":135,"width":801,"height":11}},{"id":"79e0562f-040e-4a38-b21d-22f9158cf2b4","block_type":"box","text":"retain those securities that will per form the best. An Index Fund may deviate from pro rata redemptions but will seek","page_number":152,"box":{"x":69,"y":150,"width":832,"height":12}},{"id":"b2551d41-5598-4965-8dd7-6a11940a17ea","block_type":"box","text":"for the securities and other assets to be distributed to be deemed to be a fair representation of por tfolio holdings","page_number":152,"box":{"x":68,"y":166,"width":812,"height":11}},{"id":"5fa18b1d-650f-4eb0-ada2-f1c06ed68876","block_type":"box","text":"and the interests of the remaining shareholders in the Index Fund to not be diluted.","page_number":152,"box":{"x":69,"y":181,"width":594,"height":11}},{"id":"219b23e5-394d-45be-9959-c4d692e34f97","block_type":"box","text":"The Funds may effect redemptions in kind in an effor t to, among other considerations: (a) manage the por tfolio","page_number":152,"box":{"x":101,"y":203,"width":795,"height":12}},{"id":"a4600a9e-bbb8-49c3-baa5-23140ef1c0cf","block_type":"box","text":"efficiently or for any other por tfolio management purpose, and (b) externalize cer tain transaction costs that would","page_number":152,"box":{"x":69,"y":218,"width":810,"height":12}},{"id":"eb7fa9e8-3acf-48bf-a5ce-595964fd296e","block_type":"box","text":"otherwise be borne by a Fund in connection with redemption activity or por tfolio turnover. Redemptions in kind may","page_number":152,"box":{"x":69,"y":234,"width":820,"height":11}},{"id":"5eb69c48-3dc2-4a7a-9d04-ec6fd4da6965","block_type":"box","text":"reduce the need for the Fund to maintain shor t-term cash reserves, reduce Fund transaction costs, reduce the need","page_number":152,"box":{"x":69,"y":249,"width":828,"height":10}},{"id":"a48c9b80-33ef-44ac-a4a1-f927ec3ffa3d","block_type":"box","text":"for the Fund to sell its investments at inoppor tune times, and lower Fund capital gain recognition, all of which may be","page_number":152,"box":{"x":68,"y":264,"width":838,"height":11}},{"id":"70235934-5bf8-4fbc-be25-9533c70edcd4","block_type":"box","text":"considerations when determining whether to effect a redemption in kind. However, there can be no assurance that","page_number":152,"box":{"x":69,"y":279,"width":817,"height":11}},{"id":"0199e29d-d5ae-4aa7-94bf-4bebbbf16692","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":152,"box":{"x":69,"y":294,"width":802,"height":11}},{"id":"eabd6e76-b423-4e0c-89b5-62a5660982f5","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":152,"box":{"x":70,"y":309,"width":837,"height":11}},{"id":"21e5ae75-ede8-4e05-b1b0-74ea9e00845c","block_type":"box","text":"other things, how they hold their Fund shares or the small value of the redemptions.","page_number":152,"box":{"x":69,"y":324,"width":598,"height":12}},{"id":"cfe893f3-804d-48ec-93d1-1c6863eb8014","block_type":"box","text":"In some circumstances, in order to meet Fund liquidity needs, for optimization of the Fund’s por tfolio, or a","page_number":152,"box":{"x":102,"y":347,"width":756,"height":11}},{"id":"d5ac1586-64b8-4f68-a02c-e21230ed0524","block_type":"box","text":"combination thereof, a Fund, in its discretion, may accept large purchase orders from one or more financial","page_number":152,"box":{"x":69,"y":362,"width":764,"height":11}},{"id":"54281b65-c795-409d-88c5-8ce92ef41f74","block_type":"box","text":"institutions that are willing, upon redemption of their investment in the Fund, to receive their redemption proceeds in","page_number":152,"box":{"x":70,"y":377,"width":830,"height":12}},{"id":"9897d7bf-9aa6-4fb0-bf6a-524d2568db49","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":152,"box":{"x":69,"y":392,"width":821,"height":12}},{"id":"742adff0-110d-42ca-b64d-43deeb6788d5","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":152,"box":{"x":68,"y":408,"width":837,"height":11}},{"id":"3aa73820-9b0f-4917-b49c-c92e82440b85","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":152,"box":{"x":68,"y":423,"width":784,"height":11}},{"id":"3ba943eb-7a08-40f6-bf6a-bd5848aee618","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":152,"box":{"x":69,"y":438,"width":801,"height":11}},{"id":"ae60eabe-624b-4414-aafc-abfd9320a481","block_type":"box","text":"things, limitations on frequency of redemptions in kind under the Fund’s policies and availability of shareholders able","page_number":152,"box":{"x":68,"y":453,"width":835,"height":11}},{"id":"ce3ef204-aff4-4160-8499-41458fb65088","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":152,"box":{"x":68,"y":468,"width":796,"height":11}},{"id":"ab2b9485-8122-488e-a6a2-495cfbb920ce","block_type":"box","text":"institutions that par ticipate in the transactions described in this sub-section do not receive a fee from the Fund for","page_number":152,"box":{"x":70,"y":483,"width":816,"height":11}},{"id":"318e4a06-cf31-4f58-96aa-4ceadb6ea9ce","block_type":"box","text":"doing so. The Funds’ shor t-term trading policy shall not apply to the transactions described in this sub-section.","page_number":152,"box":{"x":69,"y":498,"width":788,"height":11}},{"id":"9ae86343-2781-42a6-bf61-71f20211f28a","block_type":"box","text":"If you receive securities through a redemption in kind, and desire to conver t them to cash, you may pay taxes","page_number":152,"box":{"x":102,"y":521,"width":779,"height":11}},{"id":"54341adc-69e0-4227-943b-eff2d3355f7e","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":152,"box":{"x":69,"y":536,"width":823,"height":11}},{"id":"d53b495f-3aa5-4c07-a96b-fbf76fc162e3","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":152,"box":{"x":68,"y":551,"width":800,"height":11}},{"id":"4b0b8e65-a55a-44a9-815a-82806f40d30c","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":152,"box":{"x":69,"y":566,"width":826,"height":11}},{"id":"32b3ccd5-824c-47df-93fa-a54037e63a45","block_type":"box","text":"the NAV of the corresponding Fund.","page_number":152,"box":{"x":68,"y":581,"width":251,"height":12}},{"id":"200938db-b82a-40f2-8a61-23ad1ad6c09c","block_type":"box","text":"Repurchase","page_number":152,"box":{"x":69,"y":612,"width":85,"height":11}},{"id":"27f50e47-023f-45aa-bf33-19339d810f05","block_type":"box","text":"A Fund normally will accept orders to repurchase shares from Selling Dealers for their customers. Shares will be","page_number":152,"box":{"x":101,"y":634,"width":800,"height":12}},{"id":"54b1ca89-9e5e-4f0f-bb27-ba3bc8266206","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":152,"box":{"x":70,"y":649,"width":833,"height":12}},{"id":"04042c1e-fbee-427e-8e9e-fd5c83c65fb9","block_type":"box","text":"authorized by the Distributor by contract to accept such orders. As to repurchase orders received by Selling Dealers","page_number":152,"box":{"x":69,"y":665,"width":822,"height":11}},{"id":"d880b445-04fe-47a5-9da5-f5409d7a4dcd","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":152,"box":{"x":70,"y":680,"width":809,"height":11}},{"id":"e8a614be-a15a-4ba1-ab60-4d885a3d2f46","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":152,"box":{"x":69,"y":695,"width":831,"height":11}},{"id":"9607238d-c636-4aa2-ac8d-460634712b15","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":152,"box":{"x":70,"y":710,"width":796,"height":11}},{"id":"c78b7d64-a2d5-4f76-bcc4-cea2200c1c6c","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":152,"box":{"x":69,"y":725,"width":812,"height":11}},{"id":"5f8dab7e-c4b6-43e4-ace7-4310767a17c6","block_type":"box","text":"next business day.","page_number":152,"box":{"x":69,"y":740,"width":130,"height":11}},{"id":"0ede1ec3-963f-47a5-b2b3-ad49b534379b","block_type":"box","text":"These repurchase arrangements are for your convenience and do not involve a charge by the Fund (other than","page_number":152,"box":{"x":101,"y":763,"width":783,"height":11}},{"id":"87667cdd-fd9a-4ba9-b8d1-d32f2747f464","block_type":"box","text":"any applicable CDSC or redemption fee). However, Selling Dealers may charge a processing fee in connection with","page_number":152,"box":{"x":69,"y":778,"width":813,"height":11}},{"id":"a7f1e645-c4ea-4c9d-8c59-00ce7cfaddea","block_type":"box","text":"such transactions. In addition, securities firms that do not have selected dealer agreements with the Distributor may","page_number":152,"box":{"x":69,"y":793,"width":832,"height":11}},{"id":"6e7ff62d-ab78-4c7a-bbe6-060e23222c5e","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":152,"box":{"x":70,"y":808,"width":814,"height":11}},{"id":"eb5a373d-c512-46ce-9c13-d0824a3747dd","block_type":"box","text":"reject any order for repurchase. A shareholder whose order for repurchase is rejected by a Fund, however, may","page_number":152,"box":{"x":69,"y":823,"width":788,"height":11}},{"id":"e846cbf2-330d-4c74-bb1a-32f30c4a4cd3","block_type":"box","text":"redeem shares as set out above.","page_number":152,"box":{"x":69,"y":839,"width":235,"height":8}},{"id":"fb72904e-33c7-4ea4-a3f5-0c4189cb6d13","block_type":"box","text":"II-117","page_number":152,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"c918d3b8-52f9-412e-85e5-a14ac254d954","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":152,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"23a48736-ff1b-40c5-86a6-75b5748bd98b","block_type":"box","text":"Reinstatement Privilege — Investor A and Investor P Shares","page_number":153,"box":{"x":69,"y":45,"width":440,"height":11}},{"id":"cd57b685-d8e7-47df-b82f-067edbd05eb9","block_type":"box","text":"Upon redemption of Investor A, Investor A1, Investor P or Institutional Shares, as applicable, shareholders may","page_number":153,"box":{"x":102,"y":67,"width":791,"height":11}},{"id":"01a9d60e-e0f1-41cf-88f7-6caa2b32d489","block_type":"box","text":"reinvest all or a por tion of their redemption proceeds (after paying any applicable CDSC) in Investor A or Investor P","page_number":153,"box":{"x":69,"y":82,"width":815,"height":12}},{"id":"bb1fb215-6d77-4a5a-9fc6-027a5d25dc06","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":153,"box":{"x":69,"y":98,"width":822,"height":11}},{"id":"6980745e-57ed-43f4-8ed7-f090e21abb70","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":153,"box":{"x":68,"y":113,"width":806,"height":11}},{"id":"ff4aaae0-ec1f-4824-bf65-7e451882d643","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":153,"box":{"x":69,"y":128,"width":768,"height":11}},{"id":"ad68f416-3ad7-4a4e-be0e-73649dfb32b6","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":153,"box":{"x":70,"y":143,"width":827,"height":11}},{"id":"5a1b5a3b-d2d9-445d-a86d-8332bfed4170","block_type":"box","text":"this privilege, the Transfer Agent must receive written notification from the shareholder of record or the registered","page_number":153,"box":{"x":68,"y":158,"width":809,"height":11}},{"id":"39066761-cb65-4375-9f63-80355f8c86da","block_type":"box","text":"representative of record, at the time of purchase. Investors should consult a tax advisor concerning the tax","page_number":153,"box":{"x":69,"y":173,"width":764,"height":11}},{"id":"daf13977-fef4-4a64-bd22-647f532e7b00","block_type":"box","text":"consequences of exercising this reinstatement privilege.","page_number":153,"box":{"x":69,"y":188,"width":400,"height":12}},{"id":"55002ee5-7ac1-49a8-8c5d-ff92ee3c485b","block_type":"box","text":"SHAREHOLDER SERVICES","page_number":153,"box":{"x":384,"y":218,"width":210,"height":9}},{"id":"e79df98f-7ef7-4dff-be46-001284594aa1","block_type":"box","text":"Each Fund offers one or more of the shareholder services described below that are designed to facilitate","page_number":153,"box":{"x":102,"y":241,"width":747,"height":11}},{"id":"8ced3079-bd71-49f1-85c5-5588a827b25f","block_type":"box","text":"investment in its shares. You can obtain more information about these services from each Fund by calling the","page_number":153,"box":{"x":70,"y":256,"width":781,"height":11}},{"id":"97ea5494-71de-4815-9b6e-517e013f0c64","block_type":"box","text":"telephone number on the cover page, or from the Distributor, your financial adviser, your selected securities dealer or","page_number":153,"box":{"x":68,"y":271,"width":836,"height":11}},{"id":"9459ebd2-301f-4e4d-9159-291a74d0af31","block_type":"box","text":"other financial intermediary. Cer tain of these services are available only to U.S. investors.","page_number":153,"box":{"x":69,"y":286,"width":641,"height":11}},{"id":"c6dd82a3-90d3-4eaa-87d7-7652ea5d8f0d","block_type":"box","text":"Investment Account","page_number":153,"box":{"x":69,"y":316,"width":146,"height":9}},{"id":"d2edbb1b-b9f6-476b-a237-1c7d8e1fd956","block_type":"box","text":"If your account is maintained at the Transfer Agent (an “Investment Account”) you will receive statements, at","page_number":153,"box":{"x":102,"y":339,"width":774,"height":11}},{"id":"209238b2-9a3b-4564-8b4b-7fa5da9fbe9d","block_type":"box","text":"least quar terly, from the Transfer Agent. These statements will serve as confirmations for automatic investment","page_number":153,"box":{"x":70,"y":354,"width":796,"height":11}},{"id":"6415eebf-d11a-4a09-9f7a-ce9e2d5f00dc","block_type":"box","text":"purchases and the reinvestment of dividends. The statements also will show any other activity in your Investment","page_number":153,"box":{"x":70,"y":369,"width":807,"height":11}},{"id":"1c1e97dc-72d4-4b97-9e20-b1838d818c51","block_type":"box","text":"Account since the last statement. You also will receive separate confirmations for each purchase or sale transaction","page_number":153,"box":{"x":68,"y":384,"width":830,"height":11}},{"id":"98f9a889-4db9-42db-95b3-721e2bd87cd1","block_type":"box","text":"other than automatic investment purchases and the reinvestment of dividends. If your Investment Account is held at","page_number":153,"box":{"x":69,"y":399,"width":829,"height":11}},{"id":"23074b75-6d96-4831-ba08-3e1b9e653d85","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":153,"box":{"x":68,"y":414,"width":815,"height":12}},{"id":"05a04a81-aed3-4ffa-93d7-d5ef92be95ec","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":153,"box":{"x":70,"y":429,"width":781,"height":12}},{"id":"3276f7f2-8acc-4331-bf0a-c28fce301cae","block_type":"box","text":"selected securities dealer or other financial intermediary. If you transfer shares out of an account maintained with a","page_number":153,"box":{"x":69,"y":445,"width":825,"height":11}},{"id":"8dcdccb8-94c3-44f9-a043-797ea06e0619","block_type":"box","text":"selected securities dealer or other financial intermediary, an Investment Account in your name may be opened","page_number":153,"box":{"x":69,"y":460,"width":785,"height":11}},{"id":"d6a5066a-7bfb-4cdf-b3dc-bbb7d3e65a16","block_type":"box","text":"automatically at the Transfer Agent.","page_number":153,"box":{"x":69,"y":475,"width":251,"height":11}},{"id":"4e9474cc-33ba-4098-b164-d7e5b9e3a81f","block_type":"box","text":"You may transfer Fund shares from a selected securities dealer or other financial intermediary to another","page_number":153,"box":{"x":101,"y":498,"width":750,"height":11}},{"id":"484fbc07-c21d-4040-a740-dcfe23cc6262","block_type":"box","text":"securities dealer or other financial intermediary that has entered into an agreement with the Distributor. Cer tain","page_number":153,"box":{"x":69,"y":513,"width":797,"height":11}},{"id":"d03d29f0-c2f3-4375-adcf-19a9066645ff","block_type":"box","text":"shareholder services may not be available for the transferred shares. All future trading of these assets must be","page_number":153,"box":{"x":69,"y":528,"width":797,"height":11}},{"id":"822855b2-971c-46c6-a554-24c1c6aa2b8d","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":153,"box":{"x":69,"y":543,"width":826,"height":11}},{"id":"10b1f0e7-8907-411a-bd45-3db524023cdd","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":153,"box":{"x":68,"y":558,"width":792,"height":11}},{"id":"1207d251-557f-45fb-9143-6324d33d5c37","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":153,"box":{"x":69,"y":573,"width":824,"height":11}},{"id":"ebbfd7af-350b-4b34-8de0-40bade7010bc","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":153,"box":{"x":69,"y":588,"width":820,"height":11}},{"id":"f4564f9a-df3a-4789-b8cc-e88c61aa4fad","block_type":"box","text":"Transfer Agent registered in the name of the securities dealer or other financial intermediary for your benefit whether","page_number":153,"box":{"x":68,"y":603,"width":833,"height":12}},{"id":"40132db7-7b34-48ec-b3b7-684d9e17b3b0","block_type":"box","text":"the securities dealer or other financial intermediary has entered into a selected dealer agreement or not. In the","page_number":153,"box":{"x":68,"y":618,"width":795,"height":12}},{"id":"2b29eba7-3dfa-4012-907e-c9301ce71c49","block_type":"box","text":"interest of economy and convenience and because of the operating procedures of each Fund, share cer tificates will","page_number":153,"box":{"x":70,"y":634,"width":822,"height":11}},{"id":"f6522ef2-8008-4ddb-8b70-db257e3a7121","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":153,"box":{"x":69,"y":649,"width":814,"height":11}},{"id":"8ef20cd2-3ec7-4a78-ab19-557f74130007","block_type":"box","text":"the holders thereof will have the same rights and ownership with respect to such shares as if cer tificates had been","page_number":153,"box":{"x":68,"y":664,"width":822,"height":11}},{"id":"2c3b010f-e07a-4148-8390-c8799919ce42","block_type":"box","text":"issued.","page_number":153,"box":{"x":70,"y":679,"width":49,"height":9}},{"id":"67a39c04-927b-43a3-b653-243854c5cd1b","block_type":"box","text":"If you are considering transferring a tax-deferred retirement account, such as an individual retirement account,","page_number":153,"box":{"x":102,"y":702,"width":785,"height":11}},{"id":"77803985-e691-48c0-8331-bc2e37a51e56","block_type":"box","text":"from one selected securities dealer to another securities dealer or other financial intermediary, you should be aware","page_number":153,"box":{"x":68,"y":717,"width":830,"height":11}},{"id":"c78940b4-4d09-4cbb-9d3d-b0d63631d04d","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":153,"box":{"x":68,"y":732,"width":790,"height":11}},{"id":"53143a6b-97c2-49f5-879c-910fa4008bff","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":153,"box":{"x":69,"y":747,"width":831,"height":11}},{"id":"fa615f99-7937-4f00-952c-f1501b30bb3c","block_type":"box","text":"to maintain a retirement account at the original selected securities dealer for those shares.","page_number":153,"box":{"x":68,"y":762,"width":652,"height":11}},{"id":"af2122c8-58e6-4515-897e-b43aed7bc0c9","block_type":"box","text":"Exchange Privilege","page_number":153,"box":{"x":69,"y":792,"width":138,"height":11}},{"id":"5a2d0c04-6140-4b8b-9628-e4620ec5a032","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":153,"box":{"x":102,"y":815,"width":797,"height":11}},{"id":"738375f4-b48d-44bd-9cfe-52aabc1d1295","block_type":"box","text":"each Fund have an exchange privilege with cer tain other Funds. However, Investor A1 Shares may only exchange out.","page_number":153,"box":{"x":69,"y":830,"width":832,"height":11}},{"id":"4a16fc5b-dcd0-4f8d-a4a4-2f0a53e6755e","block_type":"box","text":"The minimum amount for exchanges of Investor class shares is $1,000, although you may exchange less than","page_number":153,"box":{"x":68,"y":845,"width":788,"height":12}},{"id":"42f3f3bf-b54b-477e-b111-8cfe830e1ff1","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":153,"box":{"x":69,"y":860,"width":796,"height":12}},{"id":"8e70c60a-7844-4497-be34-9933f6407dd9","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":153,"box":{"x":69,"y":875,"width":824,"height":12}},{"id":"4f210330-a388-4c03-a6bb-719afa4c3b34","block_type":"box","text":"closed to new investors. Before effecting an exchange, you should obtain a currently effective prospectus of the fund","page_number":153,"box":{"x":69,"y":891,"width":835,"height":11}},{"id":"0cea2262-11ae-4b20-8ed2-1d352994132a","block_type":"box","text":"II-118","page_number":153,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"f322d76d-8b72-4e32-a633-38f0a2f0d1fa","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":153,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a5083245-efb2-4b18-b79b-2f96858fba07","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":154,"box":{"x":70,"y":45,"width":820,"height":11}},{"id":"c0010601-9cf9-4530-a42e-da7768219ad4","block_type":"box","text":"shares and a purchase of the acquired shares for U.S. federal income tax purposes.","page_number":154,"box":{"x":69,"y":60,"width":600,"height":11}},{"id":"36a214c8-ce4c-4d7a-86f3-405a6368d67c","block_type":"box","text":"Exchanges of Investor A, Investor A1, Investor P, Class K, Institutional and Class G Shares.","page_number":154,"box":{"x":102,"y":82,"width":648,"height":12}},{"id":"0ea589ed-5317-4427-89ec-8f2ba0962d18","block_type":"box","text":"Institutional Shares","page_number":154,"box":{"x":757,"y":83,"width":137,"height":8}},{"id":"f274ee96-f856-4e00-8db7-94005c1e6445","block_type":"box","text":"are exchangeable with Institutional Shares of other Funds. Investor A and Investor A1 Shares are exchangeable for","page_number":154,"box":{"x":69,"y":98,"width":817,"height":11}},{"id":"55cae252-5b7e-4c82-b6bd-b1608399a798","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":154,"box":{"x":70,"y":113,"width":798,"height":11}},{"id":"23ca03dd-d243-4da2-b6c1-93e56a854cf4","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":154,"box":{"x":69,"y":128,"width":838,"height":11}},{"id":"5299db2f-a9b2-4aef-ab1d-4f7a85ded17d","block_type":"box","text":"intermediary. Class K Shares are exchangeable for Class K Shares of other Funds. Class G Shares are exchangeable","page_number":154,"box":{"x":70,"y":143,"width":834,"height":11}},{"id":"633ed4ba-e7de-45f9-a51d-4c355d95d08c","block_type":"box","text":"for Class G Shares of other Funds.","page_number":154,"box":{"x":68,"y":158,"width":246,"height":9}},{"id":"9ed198ff-4e26-49af-a7a4-524d1d45a819","block_type":"box","text":"Exchanges of Institutional Shares outstanding for Institutional Shares of a second fund or for shares of a money","page_number":154,"box":{"x":102,"y":181,"width":800,"height":11}},{"id":"9a973e51-a94f-43e0-b631-497dc14dc4f6","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":154,"box":{"x":69,"y":196,"width":826,"height":11}},{"id":"65b92744-e22d-4dc2-930a-88143cbd261a","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":154,"box":{"x":69,"y":211,"width":795,"height":11}},{"id":"cf790daf-1f4a-4ac4-8380-6da529068a3a","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":154,"box":{"x":69,"y":226,"width":797,"height":11}},{"id":"9ca9163a-cfac-4e75-9d7f-aea9fa616c57","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":154,"box":{"x":70,"y":241,"width":814,"height":11}},{"id":"66611027-6329-4c01-a591-765b00e40cec","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":154,"box":{"x":69,"y":256,"width":796,"height":12}},{"id":"0d2d9d4b-fba6-4f7f-bc1c-5f0595d8c3ea","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":154,"box":{"x":69,"y":271,"width":828,"height":12}},{"id":"9ef9134b-353b-4a7e-8d07-2c01cefc3dbf","block_type":"box","text":"G Shares of a second fund are effected on the basis of relative NAV per share.","page_number":154,"box":{"x":69,"y":286,"width":561,"height":11}},{"id":"8e8d145f-3ef9-4a8d-b2da-d901f1bee3ba","block_type":"box","text":"Exchanges of Investor C Shares.","page_number":154,"box":{"x":102,"y":309,"width":229,"height":11}},{"id":"d4bef542-01ca-4292-8ff6-c367f8db9de0","block_type":"box","text":"Shareholders of cer tain Funds with Investor C Shares outstanding (“outstanding","page_number":154,"box":{"x":338,"y":309,"width":570,"height":11}},{"id":"1d343a55-34a9-4c1d-8b19-f6930b2b96cf","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":154,"box":{"x":70,"y":324,"width":827,"height":12}},{"id":"28b8f8ae-8106-455b-8413-b9277d586f61","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":154,"box":{"x":68,"y":339,"width":839,"height":12}},{"id":"caf53626-ffac-4d13-b932-306a1e4706f5","block_type":"box","text":"the payment of any CDSC. Cer tain Funds impose different CDSC schedules. For purposes of computing the CDSC","page_number":154,"box":{"x":68,"y":355,"width":811,"height":11}},{"id":"ffd338ec-8203-4efb-a51b-54d3ea38a021","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":154,"box":{"x":69,"y":370,"width":827,"height":11}},{"id":"3598f313-e900-4f8b-8287-34e9687d9164","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":154,"box":{"x":68,"y":385,"width":781,"height":11}},{"id":"d10a9613-f0e2-4ec2-b68d-c84ed980d4cf","block_type":"box","text":"towards the holding period of the new Investor C Shares or new money market fund Shares.","page_number":154,"box":{"x":68,"y":400,"width":654,"height":11}},{"id":"77fb9253-702a-401a-8556-151da2216da3","block_type":"box","text":"Exchanges of Service Shares.","page_number":154,"box":{"x":102,"y":423,"width":211,"height":11}},{"id":"124c93e7-94bb-4921-b998-adc1c6378490","block_type":"box","text":"Service Shares can be exchanged for Service Shares of Funds that are covered by","page_number":154,"box":{"x":319,"y":423,"width":588,"height":11}},{"id":"fe8dbdfb-522c-4acf-b586-987dc68b5466","block_type":"box","text":"selected dealer agreements with the Distributor.","page_number":154,"box":{"x":69,"y":438,"width":342,"height":11}},{"id":"1c3c288d-56af-45ab-aee8-a52a91effa65","block_type":"box","text":"Exchanges for Shares of a Money Market Fund.","page_number":154,"box":{"x":102,"y":460,"width":335,"height":12}},{"id":"fa7cfad0-e0fb-4387-9042-5d0768d4ae92","block_type":"box","text":"You may exchange any class of Investor class shares, excluding","page_number":154,"box":{"x":443,"y":460,"width":455,"height":12}},{"id":"b95efdb9-5744-4b51-904e-7358863fa46d","block_type":"box","text":"Investor P Shares, for shares of an affiliated money market fund. If you exchange into BlackRock Summit Cash","page_number":154,"box":{"x":70,"y":475,"width":788,"height":12}},{"id":"d4e60ed3-9cb2-4490-ba6e-d1c98f39a649","block_type":"box","text":"Reserves Fund (“Summit”), a series of BlackRock Financial Institutions Series Trust, you will receive one of two","page_number":154,"box":{"x":70,"y":491,"width":793,"height":11}},{"id":"f27d7624-184e-4166-bb8d-75ac0d252530","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":154,"box":{"x":69,"y":506,"width":802,"height":11}},{"id":"8dde9c0e-4462-4a43-9414-8f161611c526","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":154,"box":{"x":69,"y":521,"width":824,"height":11}},{"id":"3929bde9-c3fc-4882-9e1b-0fc7bacae3b1","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":154,"box":{"x":69,"y":536,"width":805,"height":11}},{"id":"a3bcf88a-629a-4a71-9016-d532033e8469","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":154,"box":{"x":69,"y":551,"width":827,"height":11}},{"id":"276f1baa-c160-4a5c-a2f9-ef27848d2765","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":154,"box":{"x":69,"y":566,"width":758,"height":11}},{"id":"1953fbd0-874b-42c5-a1cc-7bb58f79c25c","block_type":"box","text":"satisfaction of the holding period requirement for purposes of reducing any CDSC. Investor C Shares of Summit are","page_number":154,"box":{"x":69,"y":581,"width":822,"height":12}},{"id":"2df0e3ed-139f-4d22-a790-37dc41276550","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":154,"box":{"x":69,"y":596,"width":782,"height":12}},{"id":"1947e9d2-263d-46d8-8625-37db1b71452d","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":154,"box":{"x":70,"y":612,"width":814,"height":11}},{"id":"3e5a6793-c9c9-44ec-ad94-e707a6c34137","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":154,"box":{"x":69,"y":627,"width":830,"height":11}},{"id":"6db7c70f-e593-4f7f-b867-4ffc2f5bec90","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":154,"box":{"x":69,"y":642,"width":821,"height":11}},{"id":"f43ef1c5-5e88-48ce-a1be-6ad33fe24403","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":154,"box":{"x":69,"y":657,"width":823,"height":11}},{"id":"d77b5778-cde6-4613-a19a-3cf986b677b5","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":154,"box":{"x":70,"y":672,"width":781,"height":11}},{"id":"d3761a66-971b-4421-b597-8bed78708550","block_type":"box","text":"exchange.","page_number":154,"box":{"x":69,"y":687,"width":70,"height":11}},{"id":"dffaaf88-ffff-487e-b5f3-c9c0cf83a689","block_type":"box","text":"Exchanges by Par ticipants in Cer tain Programs.","page_number":154,"box":{"x":102,"y":710,"width":337,"height":11}},{"id":"d2c3dddd-e4e5-4984-b717-cce5073644e9","block_type":"box","text":"The exchange privilege may be modified with respect to cer tain","page_number":154,"box":{"x":445,"y":710,"width":448,"height":11}},{"id":"dcd3b3ce-a039-48aa-be56-e25d409074f2","block_type":"box","text":"par ticipants in mutual fund advisory programs and other fee-based programs sponsored by the Manager, an affiliate","page_number":154,"box":{"x":70,"y":725,"width":828,"height":11}},{"id":"52d4a2de-b14c-44c8-bccd-cc38b2e9277b","block_type":"box","text":"of the Manager, or selected securities dealers or other financial intermediaries that have an agreement with the","page_number":154,"box":{"x":69,"y":740,"width":796,"height":11}},{"id":"6b37dc11-2e29-450b-836f-5c3a70729594","block_type":"box","text":"Distributor. See “Fee-Based Programs” below.","page_number":154,"box":{"x":70,"y":755,"width":324,"height":11}},{"id":"f09e8e66-3c45-49e3-9c4a-9d75c53cc53e","block_type":"box","text":"Exercise of the Exchange Privilege.","page_number":154,"box":{"x":102,"y":778,"width":245,"height":11}},{"id":"429177ff-11c5-49cc-bf62-8cf52546906f","block_type":"box","text":"To exercise the exchange privilege, you should contact your financial adviser","page_number":154,"box":{"x":353,"y":778,"width":543,"height":11}},{"id":"81584c27-9e28-4aaa-8437-85cbf4a87265","block_type":"box","text":"or the Transfer Agent, who will advise each Fund of the exchange. If you do not hold share cer tificates, you may","page_number":154,"box":{"x":69,"y":793,"width":794,"height":11}},{"id":"848e57ee-1385-4403-a131-e73b37e5eb69","block_type":"box","text":"exercise the exchange privilege by wire through your securities dealer or other financial intermediary. Each Fund","page_number":154,"box":{"x":69,"y":808,"width":795,"height":11}},{"id":"8d6d19dd-1d89-450f-abea-348ab50b413c","block_type":"box","text":"reserves the right to require a properly completed exchange application.","page_number":154,"box":{"x":69,"y":823,"width":512,"height":12}},{"id":"96be0197-51f4-471f-a289-5a1e3fecd1d7","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":154,"box":{"x":101,"y":846,"width":772,"height":11}},{"id":"177b0434-4d59-4bf9-98c3-2e6209d1c434","block_type":"box","text":"Transfer Agent at the following address: P.O. Box 534429, Pittsburgh, Pennsylvania 15253-4429. Shareholders are","page_number":154,"box":{"x":68,"y":861,"width":824,"height":11}},{"id":"670c463b-fea2-4e7f-8eff-a4abbf25a513","block_type":"box","text":"automatically provided with telephone exchange privileges when opening an account, unless they indicate on the","page_number":154,"box":{"x":69,"y":876,"width":801,"height":11}},{"id":"6dd0f724-e2b5-4533-9f40-c91fc801bf67","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":154,"box":{"x":68,"y":891,"width":817,"height":12}},{"id":"c2a5763a-3a8e-463e-afce-0efe65708362","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":154,"box":{"x":69,"y":906,"width":826,"height":12}},{"id":"a6724220-7f93-4c6a-b8f1-ed5f6deb8848","block_type":"box","text":"II-119","page_number":154,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"13e7c70a-70f2-4e04-ab61-7151260b868c","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":154,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3591f023-230e-4460-b75b-ae233fd11f1a","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":155,"box":{"x":69,"y":45,"width":840,"height":11}},{"id":"fd35e340-1cb4-415a-b880-287a971c5325","block_type":"box","text":"telephone at (800) 441-7762 to request the exchange. During periods of substantial economic or market change,","page_number":155,"box":{"x":68,"y":60,"width":811,"height":11}},{"id":"4ae66b6b-e848-4463-bef5-2c04b7605a2d","block_type":"box","text":"telephone exchanges may be difficult to complete and shareholders may have to submit exchange requests to the","page_number":155,"box":{"x":68,"y":75,"width":815,"height":11}},{"id":"367d6c12-da1c-4b88-bd0d-e30b3d1ffb90","block_type":"box","text":"Transfer Agent in writing.","page_number":155,"box":{"x":68,"y":90,"width":175,"height":11}},{"id":"c7efeb5f-3326-4e57-abe8-04b5625e3ac7","block_type":"box","text":"If the exchanging shareholder does not currently own shares of the investment por tfolio whose shares are being","page_number":155,"box":{"x":102,"y":113,"width":800,"height":11}},{"id":"d279720a-8447-44fe-a8b8-056d373f2570","block_type":"box","text":"acquired, a new account will be established with the same registration, dividend and capital gain options and broker","page_number":155,"box":{"x":69,"y":128,"width":828,"height":11}},{"id":"c1472538-e3fe-4276-a21c-232b74639338","block_type":"box","text":"of record as the account from which shares are exchanged, unless otherwise specified in writing by the shareholder","page_number":155,"box":{"x":69,"y":143,"width":826,"height":11}},{"id":"2aa96671-b1e1-4502-9c19-74e65492939c","block_type":"box","text":"with all signatures guaranteed by an eligible guarantor institution as defined below. In order to par ticipate in the","page_number":155,"box":{"x":68,"y":158,"width":797,"height":11}},{"id":"6f4691b7-cede-40c0-9e6f-dc6272189a3f","block_type":"box","text":"Automatic Investment Program or establish a Systematic Withdrawal Plan for the new account, however, an","page_number":155,"box":{"x":68,"y":173,"width":763,"height":11}},{"id":"e0716126-8dad-4be1-bd3d-2b3a1bfe727b","block_type":"box","text":"exchanging shareholder must file a specific written request.","page_number":155,"box":{"x":69,"y":188,"width":424,"height":12}},{"id":"cd65b941-047d-4c0e-b5b0-58d46e037f4f","block_type":"box","text":"Any share exchange must satisfy the requirements relating to the minimum initial investment requirement, and","page_number":155,"box":{"x":101,"y":211,"width":790,"height":11}},{"id":"696baffe-8c8c-48ba-a77a-7ce0bd368e78","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":155,"box":{"x":69,"y":226,"width":808,"height":11}},{"id":"619abb21-ac1e-454c-92bd-ccf5b8965b62","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":155,"box":{"x":69,"y":241,"width":771,"height":11}},{"id":"14672172-fae8-478a-85af-4e23dd99866d","block_type":"box","text":"exchange request, shareholders should consult a tax or other financial adviser and should consider the investment","page_number":155,"box":{"x":69,"y":256,"width":819,"height":12}},{"id":"41688f84-8874-4d3a-bf15-fbc6b37bb85b","block_type":"box","text":"objective, policies and restrictions of the investment por tfolio into which the shareholder is making an exchange.","page_number":155,"box":{"x":69,"y":271,"width":802,"height":12}},{"id":"17a8dfc1-92a2-43ca-92dc-72c95433ca08","block_type":"box","text":"Brokers may charge a fee for handling exchanges.","page_number":155,"box":{"x":70,"y":286,"width":354,"height":12}},{"id":"ca0148cc-c58e-4e2d-b817-719b601a3d75","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":155,"box":{"x":101,"y":309,"width":782,"height":11}},{"id":"45acf225-4e37-4076-886f-70e0f5493eb3","block_type":"box","text":"given to shareholders of any material modification or termination except where notice is not required. The Funds","page_number":155,"box":{"x":68,"y":324,"width":800,"height":12}},{"id":"fdbe7fd4-dd6e-41cd-a692-61d2d403f211","block_type":"box","text":"reserve the right to reject any telephone exchange request. Telephone exchanges may be subject to limitations as to","page_number":155,"box":{"x":69,"y":340,"width":831,"height":11}},{"id":"06a45f1d-e4e1-4055-a35f-c5826e88e60c","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":155,"box":{"x":69,"y":355,"width":818,"height":11}},{"id":"5f182b04-9bc3-49c7-9871-11d85b261073","block_type":"box","text":"do not operate to the disadvantage of any por tfolio or its shareholders.","page_number":155,"box":{"x":69,"y":370,"width":506,"height":11}},{"id":"66bd0ee6-89ef-40f7-a5b7-0aaab41243ed","block_type":"box","text":"The Funds, the Administrators and BRIL will employ reasonable procedures to confirm that instructions","page_number":155,"box":{"x":101,"y":392,"width":733,"height":12}},{"id":"55d2f58f-0865-4a84-aaa9-d7df6c01bfbe","block_type":"box","text":"communicated by telephone are genuine. The Funds, the Administrators and BRIL will not be liable for any loss,","page_number":155,"box":{"x":69,"y":407,"width":793,"height":12}},{"id":"8afdd70e-4c5d-4ebf-a9b2-5863b5162244","block_type":"box","text":"liability, cost or expense for acting upon telephone instructions reasonably believed to be genuine in accordance with","page_number":155,"box":{"x":70,"y":423,"width":832,"height":11}},{"id":"f2846cea-2ac8-4e6d-8481-b229f480e053","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":155,"box":{"x":69,"y":438,"width":785,"height":11}},{"id":"c0000091-6152-4ca2-87a5-ad46e0e9ccb4","block_type":"box","text":"telephonic or written exchange instructions from any person representing himself to be the investor and believed by","page_number":155,"box":{"x":68,"y":453,"width":825,"height":11}},{"id":"0ae83556-2beb-4387-8c98-01ee15093c28","block_type":"box","text":"the Fund’s Transfer Agent to be genuine. The records of the Fund’s Transfer Agent per taining to such instructions are","page_number":155,"box":{"x":68,"y":468,"width":837,"height":11}},{"id":"0a0b3cec-ebc7-4e6c-90fe-b6419d574572","block_type":"box","text":"binding. The exchange privilege may be modified or terminated at any time upon 60 days’ notice to affected","page_number":155,"box":{"x":69,"y":483,"width":767,"height":11}},{"id":"eae6993f-5914-475a-82a1-dc0c89377aef","block_type":"box","text":"shareholders. The exchange privilege is only available in states where the exchange may legally be made.","page_number":155,"box":{"x":69,"y":498,"width":750,"height":11}},{"id":"cdee033c-9268-45d2-b78a-a6d39327a0e8","block_type":"box","text":"Each Fund reserves the right to limit the number of times an investor may exercise the exchange privilege.","page_number":155,"box":{"x":102,"y":521,"width":757,"height":11}},{"id":"c8e10191-5500-441f-9e0e-1fcc3de57c40","block_type":"box","text":"Cer tain Funds may suspend the continuous offering of their shares to the general public at any time and may resume","page_number":155,"box":{"x":69,"y":536,"width":837,"height":11}},{"id":"57a412ed-3858-4906-964d-de2049e3e40f","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":155,"box":{"x":69,"y":551,"width":805,"height":11}},{"id":"bb07bc6e-999f-4a5d-bb54-969df86e00ee","block_type":"box","text":"exchange legally may be made. The exchange privilege may be applicable to other new mutual funds whose shares","page_number":155,"box":{"x":69,"y":566,"width":817,"height":11}},{"id":"8d5a68ce-4615-4185-8d01-a670a7603e83","block_type":"box","text":"may be distributed by the Distributor.","page_number":155,"box":{"x":69,"y":582,"width":262,"height":10}},{"id":"946785f4-7c9a-4590-89d4-66ab00cbd582","block_type":"box","text":"Participation in Fee-Based Programs","page_number":155,"box":{"x":69,"y":612,"width":266,"height":11}},{"id":"27374a71-d657-43fd-aec1-0d9bea363d14","block_type":"box","text":"If you par ticipate in cer tain fee-based programs offered by BlackRock or an affiliate of BlackRock, or selected","page_number":155,"box":{"x":102,"y":634,"width":780,"height":12}},{"id":"761ed309-3255-469c-8417-69f862849ab7","block_type":"box","text":"securities dealers or other financial intermediaries that have agreements with the Distributor or in cer tain fee-based","page_number":155,"box":{"x":69,"y":649,"width":826,"height":12}},{"id":"fb7a1acd-bba1-4b06-9c1b-52b666124053","block_type":"box","text":"programs in which BlackRock par ticipates, you may be able to buy Institutional Shares, including by exchanges from","page_number":155,"box":{"x":70,"y":664,"width":825,"height":12}},{"id":"3996150b-9db8-4206-9b69-4c2db7f9c596","block_type":"box","text":"other share classes. Sales charges on the shares being exchanged may be reduced or waived under cer tain","page_number":155,"box":{"x":69,"y":680,"width":770,"height":11}},{"id":"8717b2f8-cb8b-4f3c-b9e2-32b41ae40165","block_type":"box","text":"circumstances. You generally cannot transfer shares held through a fee-based program into another account. Instead,","page_number":155,"box":{"x":69,"y":695,"width":837,"height":11}},{"id":"9940e3ff-d0eb-4035-9105-ba3a00eabe4d","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":155,"box":{"x":70,"y":710,"width":808,"height":11}},{"id":"6047d7f9-32c7-4c80-b5e5-b173e4a6207c","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":155,"box":{"x":70,"y":725,"width":838,"height":11}},{"id":"ab1cdb40-338f-442f-937e-ee31cdde0af3","block_type":"box","text":"and you may pay any applicable sales charges or redemption fee. Please speak to your financial intermediary for","page_number":155,"box":{"x":69,"y":740,"width":804,"height":11}},{"id":"2e53ea00-5d56-49fb-a622-455a6626a21f","block_type":"box","text":"information about specific policies and procedures applicable to your account.","page_number":155,"box":{"x":70,"y":755,"width":555,"height":11}},{"id":"87122433-8f78-4781-be6a-880787420252","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":155,"box":{"x":102,"y":778,"width":788,"height":11}},{"id":"a02d8674-dbb7-4ca9-bc64-421d802a0ad9","block_type":"box","text":"an account. In cer tain circumstances, when a shareholder chooses to continue to hold the shares, whatever share","page_number":155,"box":{"x":69,"y":793,"width":817,"height":10}},{"id":"a7dcc131-b6a5-4354-a044-bef6a464b0a6","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":155,"box":{"x":69,"y":808,"width":796,"height":11}},{"id":"f9048369-1bde-496a-bc95-c1c98ce1da70","block_type":"box","text":"periods within the program may be subject to a fee upon redemption. Shareholders that held Investor A or","page_number":155,"box":{"x":70,"y":823,"width":754,"height":12}},{"id":"78a12380-0abe-401f-adf0-2df4ca28704a","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":155,"box":{"x":70,"y":838,"width":820,"height":12}},{"id":"84a62275-e6c3-4d3b-987e-b72c3c3e3e5e","block_type":"box","text":"Fund, but may be subject to upfront sales charges with respect to Investor A Shares. Additional purchases of","page_number":155,"box":{"x":70,"y":853,"width":777,"height":12}},{"id":"3035f159-91db-4bf8-bf66-aadc067616f9","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":155,"box":{"x":70,"y":869,"width":791,"height":11}},{"id":"48d6b614-d267-479e-be3d-2df3fb075b96","block_type":"box","text":"eligible to purchase Institutional Shares. Please speak to your financial intermediary for more information.","page_number":155,"box":{"x":69,"y":884,"width":756,"height":11}},{"id":"9b301405-722e-410a-a957-07d6bf498d5a","block_type":"box","text":"II-120","page_number":155,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"def87357-cbaa-4791-895f-314d0bfe0682","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":155,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2f0cad8a-0ab3-45ce-9afa-1cc6ae4ca453","block_type":"box","text":"Cer tain financial intermediaries may, in connection with a change in account type (for example, due to leaving a","page_number":156,"box":{"x":102,"y":45,"width":793,"height":11}},{"id":"2c73aab9-835a-4df6-98d5-76ac97641cda","block_type":"box","text":"fee-based program or upon termination of the fee-based program) or otherwise in accordance with the financial","page_number":156,"box":{"x":68,"y":60,"width":791,"height":11}},{"id":"9a958200-d1b1-425e-a6fb-96fd3cd23263","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":156,"box":{"x":70,"y":75,"width":830,"height":11}},{"id":"0d84874e-3589-4ac5-b14c-89668f8c7b92","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":156,"box":{"x":69,"y":90,"width":807,"height":11}},{"id":"a4f68cc6-4ddc-4619-9d1f-64a0052f31d3","block_type":"box","text":"eligibility requirements of the new share class. Please speak to your financial intermediary for information about","page_number":156,"box":{"x":69,"y":105,"width":801,"height":11}},{"id":"c5839f28-6995-4621-bc9c-9787d87dc7bd","block_type":"box","text":"specific policies and procedures applicable to your account.","page_number":156,"box":{"x":69,"y":120,"width":424,"height":11}},{"id":"86c9cb8b-867e-477d-8c32-5b7503147b7f","block_type":"box","text":"Details about the features of each fee-based program and the relevant charges, terms and conditions are","page_number":156,"box":{"x":102,"y":143,"width":752,"height":11}},{"id":"a2208d99-b010-4e70-9165-01789697717d","block_type":"box","text":"included in the client agreement for each fee-based program and are available from your financial professional,","page_number":156,"box":{"x":70,"y":158,"width":789,"height":11}},{"id":"bec9abaf-e5f9-41d8-be7f-43e0091a9744","block_type":"box","text":"selected securities dealer or other financial intermediary. Please speak to your financial intermediary for more","page_number":156,"box":{"x":69,"y":173,"width":785,"height":11}},{"id":"9a1854de-9974-4231-8889-80755caf3d34","block_type":"box","text":"information.","page_number":156,"box":{"x":70,"y":188,"width":83,"height":9}},{"id":"40a91419-f811-4e39-94f7-bab778df4dcf","block_type":"box","text":"Retirement and Education Savings Plans","page_number":156,"box":{"x":69,"y":219,"width":296,"height":11}},{"id":"f62b9e77-050c-41df-9473-82e383df0b1f","block_type":"box","text":"Individual retirement accounts and other retirement and education savings plans are available from your financial","page_number":156,"box":{"x":102,"y":241,"width":805,"height":11}},{"id":"2e5f423e-7bed-48bb-81c6-a0fa9d9496c5","block_type":"box","text":"intermediary. Under these plans, investments may be made in a Fund (other than a Municipal Fund) and cer tain of","page_number":156,"box":{"x":70,"y":256,"width":815,"height":11}},{"id":"b7d6f904-c69c-467d-9dc5-cd0f492b90b5","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":156,"box":{"x":68,"y":271,"width":819,"height":12}},{"id":"60ba400d-f651-4edc-9d5b-4a67577a7a34","block_type":"box","text":"associated with investing through these plans. Information with respect to these plans is available on request from","page_number":156,"box":{"x":69,"y":286,"width":820,"height":12}},{"id":"5365755f-5755-4ec7-aed3-9dac45b390c0","block_type":"box","text":"your financial intermediary.","page_number":156,"box":{"x":68,"y":302,"width":191,"height":11}},{"id":"adccc3dc-19e5-45f2-ae45-9037aceb3b5d","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":156,"box":{"x":102,"y":324,"width":796,"height":11}},{"id":"f5afe6ba-1a35-444f-a542-c840ccb23d80","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":156,"box":{"x":68,"y":339,"width":784,"height":12}},{"id":"819223a1-767d-449a-8576-7d4d8c06e515","block_type":"box","text":"distributed as well. Investors considering par ticipation in any retirement or education savings plan should review","page_number":156,"box":{"x":69,"y":355,"width":801,"height":11}},{"id":"8ffed215-ca00-4089-81cc-fc6d12518cbb","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":156,"box":{"x":69,"y":370,"width":753,"height":11}},{"id":"3081905c-5a2e-400b-a092-9873491fe645","block_type":"box","text":"establishment and maintenance of any such plan.","page_number":156,"box":{"x":69,"y":385,"width":354,"height":11}},{"id":"b9bfc22d-b418-41b7-9d65-7ddec5a5eeb3","block_type":"box","text":"Automatic Investment Plans","page_number":156,"box":{"x":68,"y":415,"width":207,"height":9}},{"id":"245f689b-5f4f-49c2-aa37-0d02bd75ed05","block_type":"box","text":"Investor class shareholders and cer tain Service Share shareholders who were shareholders of the Compass","page_number":156,"box":{"x":102,"y":438,"width":773,"height":11}},{"id":"94e99e23-2621-41aa-b7d0-426fa43a4d35","block_type":"box","text":"Capital Group of Funds at the time of its combination with The PNC","page_number":156,"box":{"x":69,"y":453,"width":477,"height":11}},{"id":"7a529c35-a1b5-4c29-ace2-c53efe9e9b93","block_type":"box","text":"®","page_number":156,"box":{"x":547,"y":453,"width":6,"height":5}},{"id":"5d85e3b6-7c08-429e-bce2-9c385ddc178c","block_type":"box","text":"Fund in 1996 may arrange for periodic","page_number":156,"box":{"x":559,"y":453,"width":272,"height":11}},{"id":"1297d345-3c5a-4714-8aa8-a299bcf165a4","block_type":"box","text":"investments in that Fund through automatic deductions from a checking or savings account. The minimum pre","page_number":156,"box":{"x":70,"y":468,"width":787,"height":11}},{"id":"5bec6c6b-e9e2-4920-9817-e1f9d53bb717","block_type":"box","text":"authorized investment amount is $50. If you buy shares of a Fund through cer tain accounts, no minimum charge to","page_number":156,"box":{"x":69,"y":482,"width":822,"height":12}},{"id":"4458ca6a-aefc-4039-96a8-f8ec052a8c0c","block_type":"box","text":"your bank account is required. Contact your financial adviser or other financial intermediary for more information.","page_number":156,"box":{"x":68,"y":498,"width":805,"height":11}},{"id":"e0f2d5db-d1b7-4e8d-8bdf-ff519b872c03","block_type":"box","text":"Automatic Dividend Reinvestment Plan","page_number":156,"box":{"x":68,"y":529,"width":285,"height":8}},{"id":"38758dcd-357c-4fc4-88fd-c79f5e4dbc00","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":156,"box":{"x":102,"y":551,"width":782,"height":11}},{"id":"d6f99259-e469-4a3d-8b92-3cb266ff4b7f","block_type":"box","text":"shareholders. All distributions are automatically reinvested at NAV in the form of additional full and fractional shares","page_number":156,"box":{"x":69,"y":566,"width":828,"height":11}},{"id":"c2648619-6dc8-41ec-8451-c736f4bd3d81","block_type":"box","text":"of the same class of shares of the relevant Fund unless a shareholder elects otherwise or as otherwise set for th in a","page_number":156,"box":{"x":69,"y":581,"width":839,"height":9}},{"id":"e89eb6f2-df30-4b01-8187-172c900dae5d","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":156,"box":{"x":70,"y":596,"width":822,"height":12}},{"id":"53861fef-bef2-4f6e-8c19-43a537336686","block_type":"box","text":"become effective with respect to dividends paid after its receipt by the Transfer Agent.","page_number":156,"box":{"x":69,"y":612,"width":614,"height":11}},{"id":"5c4dc7ee-e24d-4d50-aee1-05721025fe24","block_type":"box","text":"Systematic Withdrawal Plans","page_number":156,"box":{"x":68,"y":642,"width":214,"height":11}},{"id":"5b9672f4-a89c-49d8-9d33-fc3758534193","block_type":"box","text":"Shareholders may receive regular distributions from their accounts via a Systematic Withdrawal Plan (“SWP”).","page_number":156,"box":{"x":102,"y":664,"width":780,"height":12}},{"id":"4b04a36b-83d2-4830-9628-3ab40b5d93fb","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":156,"box":{"x":70,"y":679,"width":742,"height":12}},{"id":"414d3e05-a879-4546-b3d5-346ef7179d43","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":156,"box":{"x":69,"y":694,"width":834,"height":12}},{"id":"f595a4e9-1a06-4ba5-88e6-7e9575422110","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":156,"box":{"x":68,"y":710,"width":823,"height":11}},{"id":"fd11b7de-4801-49ec-96c0-018d777d9b3e","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":156,"box":{"x":69,"y":725,"width":840,"height":11}},{"id":"fe7cd386-08a9-4fc4-aaac-c9ea3e567b58","block_type":"box","text":"by completing the Systematic Withdrawal Plan Application Form which may be obtained by visiting our website at","page_number":156,"box":{"x":69,"y":740,"width":800,"height":11}},{"id":"268589dc-9ae6-40f4-a8a1-3de81866694f","block_type":"box","text":"www.blackrock.com.","page_number":156,"box":{"x":68,"y":755,"width":142,"height":9}},{"id":"0be62e49-0e16-43ae-97ba-656e41bd447d","block_type":"box","text":"Shareholders should realize that if withdrawals exceed income dividends their invested principal in the account","page_number":156,"box":{"x":102,"y":778,"width":789,"height":11}},{"id":"8f8705da-223c-4317-bb14-5ad56fd2e843","block_type":"box","text":"will be depleted. To par ticipate in the SWP, shareholders must have their dividends automatically reinvested.","page_number":156,"box":{"x":68,"y":793,"width":774,"height":11}},{"id":"4857fce6-c760-4596-beb3-553dbe6885d4","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":156,"box":{"x":69,"y":808,"width":815,"height":11}},{"id":"8cc5c0d0-5451-4b5f-8677-592b5ed441e1","block_type":"box","text":"(800) 441-7762. Purchases of additional Investor A or Investor P Shares of the Fund concurrently with withdrawals","page_number":156,"box":{"x":69,"y":823,"width":817,"height":11}},{"id":"5841f1b5-6b09-46b7-99b8-7ebe50dfb401","block_type":"box","text":"may be disadvantageous to investors because of the sales charges involved and, therefore, are discouraged. No","page_number":156,"box":{"x":69,"y":838,"width":803,"height":12}},{"id":"17ad6c99-24dd-48c2-89af-4b460eed33b7","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":156,"box":{"x":69,"y":853,"width":820,"height":12}},{"id":"e5d5b756-3a39-4440-9d06-ead693e7e5dd","block_type":"box","text":"original investment on an annualized basis. For example, monthly, quar terly and semi-annual SWP redemptions of","page_number":156,"box":{"x":69,"y":869,"width":810,"height":11}},{"id":"c20229f3-f000-49ca-be14-f26ba6e32b0e","block_type":"box","text":"II-121","page_number":156,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"b9a0328d-aca2-46b5-880a-6df6329dc821","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":156,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a6a95caa-73bb-4ab3-8d21-3bac4846ae11","block_type":"box","text":"Investor C Shares will not be subject to the CDSC if they do not exceed 1% (monthly), 3% (quar terly) and 6% (semi","page_number":157,"box":{"x":70,"y":45,"width":816,"height":11}},{"id":"f56a3446-654c-4552-a277-4447ddb95ae5","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":157,"box":{"x":69,"y":60,"width":840,"height":11}},{"id":"7e7ed5aa-3766-447c-a0fc-09cc80d8855e","block_type":"box","text":"of this limit are still subject to the applicable CDSC.","page_number":157,"box":{"x":69,"y":75,"width":367,"height":11}},{"id":"922d10e2-9e98-4e22-9195-30f59dc019ca","block_type":"box","text":"For this reason, a shareholder may not par ticipate in the Automatic Investment Plan described above (see “How","page_number":157,"box":{"x":102,"y":98,"width":798,"height":11}},{"id":"ad9a43a6-3b90-4071-89dc-a6ee1d64cc5b","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":157,"box":{"x":68,"y":113,"width":834,"height":11}},{"id":"3af371e8-9ad5-4f84-a909-d282c6d57f34","block_type":"box","text":"Prospectus) and the SWP at the same time.","page_number":157,"box":{"x":69,"y":128,"width":311,"height":11}},{"id":"1894babf-4199-4561-9287-a6c0d03a204d","block_type":"box","text":"Dividend Allocation Plan","page_number":157,"box":{"x":69,"y":158,"width":176,"height":9}},{"id":"38d1072b-2ea0-4613-9053-2dd3f7553627","block_type":"box","text":"The Dividend Allocation Plan, as applicable, allows shareholders to elect to have all their dividends and any other","page_number":157,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"05ca8c4a-f400-446a-8843-71cb8ea66e72","block_type":"box","text":"distributions from any Eligible Fund (which means funds so designated by the Distributor from time to time)","page_number":157,"box":{"x":69,"y":196,"width":763,"height":11}},{"id":"921616bd-ed61-4f57-805b-8141b08ebfbf","block_type":"box","text":"automatically invested at NAV in one other such Eligible Fund designated by the shareholder, provided the account","page_number":157,"box":{"x":69,"y":211,"width":814,"height":11}},{"id":"2e573382-4646-40fb-b1e3-b7dac36e9a12","block_type":"box","text":"into which the dividends and distributions are directed is initially funded with the requisite minimum amount.","page_number":157,"box":{"x":70,"y":226,"width":771,"height":11}},{"id":"7a72192b-0ea2-41b8-ae26-8cfa2e56a7c4","block_type":"box","text":"PRICING OF SHARES","page_number":157,"box":{"x":406,"y":256,"width":167,"height":9}},{"id":"378b1ec7-aeb2-4c40-b7d8-ec72def07d9e","block_type":"box","text":"Determination of Net Asset Value","page_number":157,"box":{"x":69,"y":286,"width":243,"height":9}},{"id":"e8321ba3-ec6e-4812-93c4-f41e521ce6c8","block_type":"box","text":"Valuation of Shares.","page_number":157,"box":{"x":101,"y":309,"width":145,"height":9}},{"id":"88e6b23c-aaf8-4374-9561-42585dcdccea","block_type":"box","text":"The NAV for each class of shares of each Fund is generally calculated as of the close of","page_number":157,"box":{"x":252,"y":309,"width":626,"height":11}},{"id":"451599db-98e7-4419-b896-af552c8ba3ad","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":157,"box":{"x":69,"y":324,"width":785,"height":11}},{"id":"04609ca2-1027-4982-97db-7bcc76bd77f6","block_type":"box","text":"Valuation of assets held by a Fund is as follows:","page_number":157,"box":{"x":68,"y":339,"width":343,"height":11}},{"id":"baadeb5c-e90c-4a1c-94e0-04d3cb12e80d","block_type":"box","text":"Equity Investments.","page_number":157,"box":{"x":102,"y":362,"width":143,"height":11}},{"id":"3c2fe06f-11ee-4bdb-97dd-cfcbac29229a","block_type":"box","text":"Equity securities traded on a recognized securities exchange (","page_number":157,"box":{"x":252,"y":362,"width":439,"height":11}},{"id":"f4a7c6e1-8d88-4075-bfa2-8c7c60a75bf6","block_type":"box","text":"e.g.","page_number":157,"box":{"x":693,"y":363,"width":25,"height":10}},{"id":"adcfef93-084f-4b93-9657-e50d1dc81d72","block_type":"box","text":", NYSE), on separate","page_number":157,"box":{"x":720,"y":362,"width":147,"height":11}},{"id":"1cec4377-f901-4793-a7be-6a81f30ceed4","block_type":"box","text":"trading boards of a securities exchange or through a market system that provides contemporaneous transaction","page_number":157,"box":{"x":68,"y":377,"width":799,"height":11}},{"id":"a4a0d6d3-9d43-496f-b501-f63b7dcdf74f","block_type":"box","text":"pricing information (each, an “Exchange”) are valued using information obtained via independent pricing services,","page_number":157,"box":{"x":70,"y":392,"width":808,"height":11}},{"id":"289710ea-ae3f-46fc-a17b-4c00e46d5dbc","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":157,"box":{"x":68,"y":407,"width":820,"height":11}},{"id":"1039ab21-6f8f-4547-bef0-cb68fd0035fb","block_type":"box","text":"Exchange prior to the time as of which the assets or liabilities are valued. However, under cer tain circumstances,","page_number":157,"box":{"x":70,"y":422,"width":805,"height":11}},{"id":"94c997b3-3730-451b-8a37-a903b50eed4c","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":157,"box":{"x":69,"y":437,"width":793,"height":11}},{"id":"ddc5c355-4fc1-4e4a-9dc7-2da8d78bf509","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":157,"box":{"x":70,"y":452,"width":836,"height":11}},{"id":"58dbc846-86fd-4d4d-aba2-e1a6c5926360","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":157,"box":{"x":68,"y":468,"width":815,"height":11}},{"id":"325002f3-1203-4877-81cd-54d115ed22de","block_type":"box","text":"last bid (long positions) or ask (shor t positions) price, if available, will be used as the value of such security. If a Fund","page_number":157,"box":{"x":70,"y":482,"width":837,"height":12}},{"id":"759d3ea3-9d55-4411-827d-01ba1ea1d2bf","block_type":"box","text":"holds both long and shor t positions in the same security, the last bid price will be applied to securities held long and","page_number":157,"box":{"x":69,"y":498,"width":832,"height":11}},{"id":"d135b5d9-a4c9-4b50-a1a5-b7ece3569a3f","block_type":"box","text":"the last ask price will be applied to securities sold shor t. If no bid or ask price is available on a day on which a Fund","page_number":157,"box":{"x":68,"y":513,"width":828,"height":11}},{"id":"44ef2281-ecbf-4e55-aeb6-1fa1b3a9e1af","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":157,"box":{"x":68,"y":528,"width":819,"height":11}},{"id":"5e2c2ab7-7192-4f0c-b52e-f324a4a9c7a9","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":157,"box":{"x":70,"y":543,"width":798,"height":11}},{"id":"29bf4443-1cf9-42ad-82dd-fcb131fb0782","block_type":"box","text":"defined below).","page_number":157,"box":{"x":69,"y":558,"width":106,"height":11}},{"id":"5dc9fafa-643c-44c8-b381-965fca7e96e5","block_type":"box","text":"Fixed-Income Investments.","page_number":157,"box":{"x":102,"y":581,"width":194,"height":9}},{"id":"73cdbd47-f976-4359-b6a9-8b170b94a4cc","block_type":"box","text":"Fixed-income securities are generally valued using prices provided by dealers or","page_number":157,"box":{"x":304,"y":581,"width":565,"height":11}},{"id":"4b45499a-e98b-410c-9828-1d582b2eb296","block_type":"box","text":"prices (including evaluated prices) supplied by the Fund’s approved independent third-par ty pricing services, each in","page_number":157,"box":{"x":70,"y":596,"width":825,"height":11}},{"id":"c33d1dde-0c1a-4c25-82a4-5abffe999760","block_type":"box","text":"accordance with the Valuation Procedures. The pricing services may use valuation models that utilize cer tain inputs","page_number":157,"box":{"x":69,"y":611,"width":823,"height":11}},{"id":"e144ac37-6963-45be-8b58-ade6579acc2c","block_type":"box","text":"and assumptions to derive values, including transaction data (","page_number":157,"box":{"x":69,"y":626,"width":443,"height":11}},{"id":"b3f8fe5b-560b-45cc-b686-31e5ea7e6285","block_type":"box","text":"e.g.","page_number":157,"box":{"x":514,"y":628,"width":24,"height":9}},{"id":"8daa758d-955b-4991-b339-9e6bfbe921cf","block_type":"box","text":", recent representative bids and offers), credit","page_number":157,"box":{"x":541,"y":626,"width":328,"height":11}},{"id":"a5d61e0d-cada-412e-88a6-25be6ab9d25f","block_type":"box","text":"quality information, perceived market movements, news, and other relevant information and by other methods, which","page_number":157,"box":{"x":69,"y":641,"width":834,"height":11}},{"id":"0a5554f2-b75b-42ea-ae5d-26beb4f1fc43","block_type":"box","text":"may include consideration of: yields or prices of securities of comparable quality, coupon, maturity and type;","page_number":157,"box":{"x":69,"y":656,"width":769,"height":11}},{"id":"187332a1-356e-4e87-b983-f04420329645","block_type":"box","text":"indications as to values from dealers; general market conditions; and/or other factors and assumptions. Pricing","page_number":157,"box":{"x":70,"y":671,"width":797,"height":12}},{"id":"e8c96c21-c50e-4409-b92d-30022236c290","block_type":"box","text":"services generally value fixed-income securities assuming orderly transactions of an institutional round lot size, but","page_number":157,"box":{"x":69,"y":686,"width":821,"height":12}},{"id":"132c8ca0-7aa2-41ae-95d0-399a5f56d8a8","block_type":"box","text":"the Fund may hold or transact in such securities in smaller, odd lot sizes. Odd lots of securities in cer tain asset","page_number":157,"box":{"x":68,"y":702,"width":798,"height":11}},{"id":"54a09ac9-9706-42d6-b625-5d0bc72e6ee7","block_type":"box","text":"classes may trade at lower prices than institutional round lots, and the value ultimately realized when the securities","page_number":157,"box":{"x":69,"y":717,"width":825,"height":11}},{"id":"42f761cb-84ad-4a32-a012-144dd85448c8","block_type":"box","text":"are sold could differ from the prices used by a Fund. The amor tized cost method of valuation may be used with","page_number":157,"box":{"x":69,"y":732,"width":791,"height":11}},{"id":"72529ec0-66ef-40b1-8f8a-679c959e60a1","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":157,"box":{"x":69,"y":747,"width":814,"height":11}},{"id":"1b4cf8b4-fac8-461a-9360-78f340d42cf1","block_type":"box","text":"value. Cer tain fixed-income investments, including asset-backed and mor tgage related securities, may be valued","page_number":157,"box":{"x":68,"y":762,"width":802,"height":11}},{"id":"13af3860-4efa-4ac4-a102-020e86857fae","block_type":"box","text":"based on valuation models that consider the estimated cash flows of each tranche of the issuer, establish a","page_number":157,"box":{"x":69,"y":777,"width":773,"height":11}},{"id":"3ba207a2-2446-43d9-9a04-4581452960c5","block_type":"box","text":"benchmark yield and develop an estimated tranche specific spread to the benchmark yield based on the unique","page_number":157,"box":{"x":69,"y":792,"width":795,"height":12}},{"id":"2a8f2b7f-ea34-431f-a63c-06816ba86282","block_type":"box","text":"attributes of the tranche.","page_number":157,"box":{"x":69,"y":807,"width":176,"height":9}},{"id":"9d2429a9-4c2b-43fe-a586-773690f337ed","block_type":"box","text":"Options, Futures, Swaps and Other Derivatives.","page_number":157,"box":{"x":101,"y":830,"width":344,"height":11}},{"id":"066f249b-eb77-4169-9bed-c5037916acf7","block_type":"box","text":"Exchange-traded equity options (except ETF options, equity","page_number":157,"box":{"x":453,"y":830,"width":416,"height":11}},{"id":"21ceab32-93ac-48ac-b94b-42a6d4bd59ca","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":157,"box":{"x":70,"y":845,"width":829,"height":11}},{"id":"109cb541-af55-4630-aacd-e7c6a8059def","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":157,"box":{"x":69,"y":860,"width":824,"height":12}},{"id":"fc27bfde-a298-4a85-8e15-52aff17d4bd5","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":157,"box":{"x":68,"y":875,"width":838,"height":12}},{"id":"f16640cf-d9bb-447b-a558-6a9d2130905b","block_type":"box","text":"the Fund values such option, the last bid (long positions) or ask (shor t positions) price, if available, will be used as","page_number":157,"box":{"x":68,"y":891,"width":820,"height":11}},{"id":"361fc731-3069-4a33-94d1-3b7e263b5de5","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":157,"box":{"x":68,"y":906,"width":808,"height":11}},{"id":"3b70103f-5890-4a9a-b0fa-b5d96c6b2f4c","block_type":"box","text":"II-122","page_number":157,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"64467a55-7ac9-48ad-a02a-09a2c74a58a9","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":157,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7ea1fc8a-7443-4683-a066-d421e0c736cd","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":158,"box":{"x":69,"y":45,"width":824,"height":11}},{"id":"79c831bc-3822-42ed-b6c0-9cb9123422bf","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":158,"box":{"x":68,"y":60,"width":789,"height":11}},{"id":"38e009ab-a213-45c9-9ecf-cfd89d900c85","block_type":"box","text":"options, ETF options, equity index options and OTC derivatives, may be valued using a mathematical model which","page_number":158,"box":{"x":69,"y":75,"width":807,"height":11}},{"id":"022f6cb0-90f9-4a17-8051-3f086fc34b75","block_type":"box","text":"may incorporate a number of market data factors. Financial futures contracts and options thereon, which are traded","page_number":158,"box":{"x":69,"y":90,"width":824,"height":11}},{"id":"5a8137b5-0085-46bc-9fcd-570b8d87b5a0","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":158,"box":{"x":69,"y":105,"width":833,"height":11}},{"id":"2e1308f7-c3a1-44c7-993f-2a9d2dd12e9f","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":158,"box":{"x":69,"y":120,"width":830,"height":12}},{"id":"0f0143b5-495d-49ec-a9c1-835f99b718a8","block_type":"box","text":"accordance with the Valuation Procedures.","page_number":158,"box":{"x":69,"y":136,"width":301,"height":8}},{"id":"af5a686d-2b41-4022-97f1-20d60d2d0427","block_type":"box","text":"Underlying Funds.","page_number":158,"box":{"x":102,"y":158,"width":128,"height":11}},{"id":"3dd732eb-2fe4-4b35-bbc7-e23e5a7cfa65","block_type":"box","text":"Shares of underlying open-end funds that are not traded on an exchange (including money","page_number":158,"box":{"x":237,"y":158,"width":640,"height":11}},{"id":"609d62d4-8fe4-4369-8d19-6bf11f135b24","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":158,"box":{"x":69,"y":173,"width":830,"height":11}},{"id":"185038d0-e60e-409a-a710-ae2fc778e6a1","block_type":"box","text":"at their most recent closing price.","page_number":158,"box":{"x":69,"y":188,"width":238,"height":12}},{"id":"56e99b52-35b0-4047-ad43-b02c4e31147e","block_type":"box","text":"General Valuation Information.","page_number":158,"box":{"x":101,"y":211,"width":220,"height":9}},{"id":"5c03643c-5069-4ea6-b63c-be8ad053c39c","block_type":"box","text":"Prices obtained from independent third-par ty pricing services, broker-dealers or","page_number":158,"box":{"x":328,"y":211,"width":564,"height":11}},{"id":"2efa2366-b350-4ffd-b38f-5e825f535e23","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":158,"box":{"x":69,"y":226,"width":831,"height":9}},{"id":"2742a437-2cba-4d8c-8a0b-14f3d6a15136","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":158,"box":{"x":68,"y":241,"width":828,"height":11}},{"id":"54ad5bba-6125-49c9-883c-83434d948796","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":158,"box":{"x":69,"y":257,"width":829,"height":11}},{"id":"fba793d5-483a-474a-b960-fb0e6823b9bf","block_type":"box","text":"applied prospectively. Such determination will be made considering per tinent facts and circumstances surrounding","page_number":158,"box":{"x":69,"y":271,"width":817,"height":12}},{"id":"9e8fb8dc-4cb7-41e9-b303-3241a35782bf","block_type":"box","text":"the revision.","page_number":158,"box":{"x":68,"y":287,"width":87,"height":9}},{"id":"7a8f5cab-71d5-4fc7-87dd-858f10a308a3","block_type":"box","text":"In determining the market value of por tfolio investments, the Fund may employ independent third-par ty pricing","page_number":158,"box":{"x":102,"y":309,"width":784,"height":11}},{"id":"9fc2f276-af86-4196-8a84-2846f3d55246","block_type":"box","text":"services, which may use, without limitation, evaluated pricing methods that take into consideration market indexes,","page_number":158,"box":{"x":69,"y":325,"width":823,"height":11}},{"id":"3d48044e-9403-426e-956d-bb74ae9feded","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":158,"box":{"x":69,"y":339,"width":818,"height":12}},{"id":"ae488027-98cd-44ed-9482-166bd75a2b16","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":158,"box":{"x":70,"y":355,"width":832,"height":11}},{"id":"7bf27c03-b573-4448-8ba7-fb774a327691","block_type":"box","text":"price the Fund could receive upon the sale of any par ticular por tfolio investment may differ from the Fund’s valuation","page_number":158,"box":{"x":70,"y":370,"width":832,"height":11}},{"id":"4d45c535-430c-4f1f-a746-0ece548984b5","block_type":"box","text":"of the investment, par ticularly for assets that trade in thin or volatile markets or that are valued using a fair valuation","page_number":158,"box":{"x":69,"y":385,"width":834,"height":11}},{"id":"9046805d-72b3-4062-895b-8065f9e2edce","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":158,"box":{"x":69,"y":400,"width":837,"height":11}},{"id":"50ae264d-7316-495c-a8a9-5acc9c85a982","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":158,"box":{"x":70,"y":415,"width":833,"height":11}},{"id":"99ed5e1a-7504-4a75-9f58-776cd3c605df","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":158,"box":{"x":69,"y":430,"width":827,"height":11}},{"id":"b6d80f12-8f17-4765-bc29-87dc208dfc6e","block_type":"box","text":"impacted by technological issues and/or errors by pricing services or other third-par ty service providers.","page_number":158,"box":{"x":70,"y":446,"width":741,"height":11}},{"id":"c4c9c413-19f2-4a8c-a27d-67f344c188ac","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":158,"box":{"x":102,"y":468,"width":800,"height":11}},{"id":"42ce0032-32e0-4917-aeb4-fd7cf49af4e2","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":158,"box":{"x":69,"y":483,"width":811,"height":11}},{"id":"2bc9b0c1-ef48-4b75-b10b-197e044f6dda","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":158,"box":{"x":69,"y":498,"width":827,"height":11}},{"id":"991d0f27-80ea-4252-bd15-798f14a20fd6","block_type":"box","text":"value. All other assets and liabilities (including securities for which market quotations are not readily available) held","page_number":158,"box":{"x":68,"y":513,"width":824,"height":12}},{"id":"303e99c4-c436-4a39-bf8d-88afc63beb66","block_type":"box","text":"by a Fund (including restricted securities and private market investments, as applicable) are valued at fair value as","page_number":158,"box":{"x":69,"y":528,"width":817,"height":12}},{"id":"bd9b434f-8f80-4ed6-bfe6-08c063e236b1","block_type":"box","text":"determined in good faith by BlackRock pursuant to the Valuation Procedures. Any assets and liabilities which are","page_number":158,"box":{"x":69,"y":543,"width":802,"height":12}},{"id":"a42856cc-377f-4b3c-9583-f1ab2b01e044","block_type":"box","text":"denominated in a foreign currency are translated into U.S. dollars at the prevailing market rates.","page_number":158,"box":{"x":69,"y":559,"width":685,"height":11}},{"id":"6a622153-b55b-496c-8058-ba7a32bf6f16","block_type":"box","text":"Cer tain of the securities acquired by the Funds may be traded on foreign exchanges or OTC markets on days on","page_number":158,"box":{"x":102,"y":581,"width":795,"height":12}},{"id":"c54d5c47-ae2a-4904-8dc1-a437a896212a","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":158,"box":{"x":68,"y":596,"width":805,"height":12}},{"id":"4a66f2a2-82b7-4dd4-85f0-1b624e8eff0c","block_type":"box","text":"days when investors can neither purchase nor redeem shares of the Fund.","page_number":158,"box":{"x":69,"y":612,"width":529,"height":11}},{"id":"389b4d06-d523-4b37-ae15-3e7712ce2634","block_type":"box","text":"Fair Value.","page_number":158,"box":{"x":102,"y":634,"width":74,"height":9}},{"id":"a275098d-93cc-4252-8ea9-98ae10001ca6","block_type":"box","text":"When market quotations are not readily available or are believed by BlackRock to be unreliable, a","page_number":158,"box":{"x":183,"y":634,"width":693,"height":11}},{"id":"4bddacd4-391e-455e-969c-b8cb4b035f75","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":158,"box":{"x":70,"y":649,"width":785,"height":12}},{"id":"0588c907-f214-4673-988f-042922cb51aa","block_type":"box","text":"accordance with the Valuation Procedures. Pursuant to Rule 2a-5 under the Investment Company Act, the Board of","page_number":158,"box":{"x":69,"y":664,"width":816,"height":12}},{"id":"3112c7fe-ce8e-407c-84a2-f2c6dea058f5","block_type":"box","text":"Directors has designated BlackRock as the valuation designee for the respective Funds for which it serves as","page_number":158,"box":{"x":70,"y":680,"width":779,"height":11}},{"id":"88741358-2490-4e5d-b0cb-d9f2df469750","block_type":"box","text":"investment adviser. BlackRock may reasonably conclude that a market quotation is not readily available or is","page_number":158,"box":{"x":70,"y":695,"width":773,"height":11}},{"id":"bb055a19-9a2e-4cf1-a132-d1043549f4a0","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":158,"box":{"x":69,"y":710,"width":772,"height":11}},{"id":"895354f1-41d3-4a77-83a5-b407626c5fdc","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":158,"box":{"x":69,"y":725,"width":826,"height":11}},{"id":"aa1b0790-8af5-4739-8cea-85378a637392","block_type":"box","text":"(","page_number":158,"box":{"x":69,"y":740,"width":3,"height":11}},{"id":"cf1a4eea-951e-4359-8374-153f3db0e334","block_type":"box","text":"e.g.","page_number":158,"box":{"x":74,"y":742,"width":25,"height":9}},{"id":"71d5bc57-65b1-4582-9563-68adebb2de71","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":158,"box":{"x":101,"y":740,"width":806,"height":11}},{"id":"9a98a394-632f-4a0e-bb6e-bfcb82a7a4a1","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":158,"box":{"x":69,"y":755,"width":813,"height":11}},{"id":"84bdc417-40df-4a13-aa3c-7c412633e7d1","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":158,"box":{"x":68,"y":770,"width":837,"height":12}},{"id":"f6563aa5-bc2f-4c73-be51-d671222dc0c5","block_type":"box","text":"purpose, a “significant event” is deemed to occur if BlackRock determines, in its reasonable business judgment, that","page_number":158,"box":{"x":70,"y":785,"width":838,"height":12}},{"id":"ad7b1ff6-5755-4083-8682-f049f77e3db5","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":158,"box":{"x":69,"y":801,"width":824,"height":11}},{"id":"a86580a6-466c-47bb-b2b9-d58f3b5b50f3","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":158,"box":{"x":69,"y":816,"width":828,"height":11}},{"id":"4bb2a0cc-9d7c-4978-8c6e-f665c5a4bdc4","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":158,"box":{"x":69,"y":831,"width":793,"height":11}},{"id":"c836c99a-5dcf-47c4-b3f8-28193bd477af","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":158,"box":{"x":70,"y":846,"width":819,"height":11}},{"id":"7f10519b-4812-426a-86b1-f4821d3d99ee","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":158,"box":{"x":68,"y":861,"width":810,"height":11}},{"id":"e4d8f508-19bd-476d-86d2-d6dbe0057327","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":158,"box":{"x":69,"y":876,"width":828,"height":11}},{"id":"5919e0e3-d727-42ff-aa1b-89411dab304a","block_type":"box","text":"be treated as a Fair Value Asset. For cer tain foreign assets, a third-par ty vendor supplies evaluated, systematic fair","page_number":158,"box":{"x":69,"y":891,"width":822,"height":12}},{"id":"54d9f326-ff1a-4734-b489-15aa28a3f600","block_type":"box","text":"value pricing based upon the movement of a proprietary multi-factor model after the relevant foreign markets have","page_number":158,"box":{"x":68,"y":906,"width":814,"height":12}},{"id":"f37cb96f-0e22-461f-abcf-b684bc7b683e","block_type":"box","text":"II-123","page_number":158,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"a27eca80-b47e-4d25-a6c6-e899cbc4a5cc","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":158,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"03899445-bd4c-4814-8893-067e0b1875ef","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":159,"box":{"x":69,"y":45,"width":827,"height":11}},{"id":"de43ec29-76dd-475d-98e3-03988ff004f3","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":159,"box":{"x":69,"y":60,"width":834,"height":11}},{"id":"eafb1edc-37d5-4cc2-9697-735b7ba26cc7","block_type":"box","text":"pricing time.","page_number":159,"box":{"x":70,"y":75,"width":85,"height":11}},{"id":"6b7a4750-bbcd-42a1-a45e-b1d71905cde8","block_type":"box","text":"BlackRock’s Rule 2a-5 Committee is responsible for reviewing and approving methodologies by investment type","page_number":159,"box":{"x":102,"y":98,"width":794,"height":11}},{"id":"6da70dd4-72e4-41f2-9770-0045cd2b4fc9","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":159,"box":{"x":69,"y":113,"width":829,"height":11}},{"id":"aa4c7c5c-888f-4a11-83f8-21dec0ede11e","block_type":"box","text":"assists BlackRock by periodically endeavoring to confirm the prices it receives from all third-par ty pricing services,","page_number":159,"box":{"x":69,"y":128,"width":813,"height":11}},{"id":"d871d721-18c8-4ae0-92de-5e9379c73b66","block_type":"box","text":"index providers and broker-dealers. BlackRock regularly evaluates the values assigned to the securities and other","page_number":159,"box":{"x":70,"y":143,"width":808,"height":11}},{"id":"22fbc04d-9077-4335-ae27-26f015fba9fa","block_type":"box","text":"assets and liabilities of the Funds.","page_number":159,"box":{"x":69,"y":158,"width":245,"height":9}},{"id":"da7ad99f-3eb7-4e7b-93e4-6e8dce76b325","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":159,"box":{"x":101,"y":181,"width":795,"height":11}},{"id":"349ce382-fc37-4640-ab96-a123fced3dff","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":159,"box":{"x":69,"y":196,"width":832,"height":11}},{"id":"61cd9611-b5f0-401e-ab55-594b15c536c9","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":159,"box":{"x":69,"y":211,"width":805,"height":11}},{"id":"4135ef39-71e4-4311-a384-6e27a6e3bbfa","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":159,"box":{"x":69,"y":226,"width":834,"height":11}},{"id":"cf39c5c8-f569-43a3-bfc4-c847a04f9f21","block_type":"box","text":"determinations will be based upon all available factors that BlackRock deems relevant at the time of the","page_number":159,"box":{"x":69,"y":241,"width":744,"height":11}},{"id":"4dcdb833-3f41-4bf6-802f-2dd914c7ac23","block_type":"box","text":"determination, and may be based on analytical values determined by BlackRock using proprietary or third-par ty","page_number":159,"box":{"x":69,"y":257,"width":791,"height":11}},{"id":"3dd635c0-eb58-4703-9a65-2722019dfef4","block_type":"box","text":"valuation models.","page_number":159,"box":{"x":68,"y":272,"width":125,"height":8}},{"id":"090e16ff-7ef3-4e01-b47a-ce44e68975a4","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":159,"box":{"x":102,"y":294,"width":785,"height":11}},{"id":"60170b14-99a4-464e-b52e-fe5ab3eff910","block_type":"box","text":"value of an investment, one or more fair value methodologies may be used (depending on cer tain factors, including","page_number":159,"box":{"x":68,"y":309,"width":822,"height":11}},{"id":"836c3a8a-0d28-46ec-886d-4c0af3c48b84","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":159,"box":{"x":68,"y":324,"width":820,"height":12}},{"id":"9aae4647-2a6c-4c73-ba2d-d9492f9b9504","block_type":"box","text":"alternatively, using proprietary or third-par ty models that may rely upon one or more unobservable inputs. Prices of","page_number":159,"box":{"x":69,"y":339,"width":818,"height":12}},{"id":"a3ade39d-74c2-456e-a817-a70a7597d9a8","block_type":"box","text":"actual, executed or historical transactions in the relevant investment (or comparable instruments) or, where","page_number":159,"box":{"x":69,"y":355,"width":766,"height":11}},{"id":"6fa0119f-a389-48bf-b186-078c83bcd623","block_type":"box","text":"appropriate, an appraisal by a third-par ty experienced in the valuation of similar instruments, may also be used as a","page_number":159,"box":{"x":69,"y":370,"width":828,"height":11}},{"id":"37258028-44ae-4240-8c58-fee0897fbfac","block_type":"box","text":"basis for establishing the fair value of an investment.","page_number":159,"box":{"x":69,"y":385,"width":378,"height":11}},{"id":"b82e7582-8f81-48f8-8dc3-547963f913f7","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":159,"box":{"x":101,"y":407,"width":784,"height":12}},{"id":"8a6cf7a8-f206-4489-b552-cddc1298cbba","block_type":"box","text":"liabilities could have been sold during the period in which the par ticular fair values were used in determining a Fund’s","page_number":159,"box":{"x":70,"y":423,"width":836,"height":11}},{"id":"d2dc9cb6-056f-451c-9a3c-bf78945c1e6a","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":159,"box":{"x":70,"y":438,"width":834,"height":11}},{"id":"76d89efe-6cbc-4002-9e35-daad8a1b6cd2","block_type":"box","text":"fair value, may have the effect of diluting or increasing the economic interest of existing shareholders.","page_number":159,"box":{"x":68,"y":453,"width":728,"height":11}},{"id":"6ccc3658-3afa-432a-ac93-87724713ee40","block_type":"box","text":"Each Fund’s annual audited financial statements, which are prepared in accordance with accounting principles","page_number":159,"box":{"x":102,"y":475,"width":786,"height":12}},{"id":"99d7dff8-9b0b-4f0a-a15e-9118d98910ba","block_type":"box","text":"generally accepted in the United States of America (“US GAAP”), follow the requirements for valuation set for th in","page_number":159,"box":{"x":68,"y":491,"width":809,"height":11}},{"id":"30b44662-29f6-4353-987b-b621cfdd6421","block_type":"box","text":"Financial Accounting Standards Board Accounting Standards Codification Topic 820, “Fair Value Measurements and","page_number":159,"box":{"x":70,"y":506,"width":821,"height":11}},{"id":"dc469b98-634e-4d37-8d0c-46d969307db3","block_type":"box","text":"Disclosures” (“ASC 820”), which defines and establishes a framework for measuring fair value under US GAAP and","page_number":159,"box":{"x":70,"y":521,"width":818,"height":11}},{"id":"d9f12d50-c7ce-4515-8c63-f67ea3412a7f","block_type":"box","text":"expands financial statement disclosure requirements relating to fair value measurements.","page_number":159,"box":{"x":69,"y":536,"width":641,"height":11}},{"id":"c6d4556e-fc41-40f6-b8ff-94ecd9a68740","block_type":"box","text":"Generally, ASC 820 and other accounting rules applicable to funds and various assets in which they invest are","page_number":159,"box":{"x":102,"y":559,"width":786,"height":11}},{"id":"f961dd4b-a2f7-40fd-9f36-8bf010186d5f","block_type":"box","text":"evolving. Such changes may adversely affect a Fund. For example, the evolution of rules governing the determination","page_number":159,"box":{"x":69,"y":574,"width":832,"height":11}},{"id":"6feb89bf-217a-43b7-9c8a-7feafb305d9b","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":159,"box":{"x":69,"y":589,"width":780,"height":11}},{"id":"b330e929-d2b7-4ddd-965b-8b67d8d2e221","block_type":"box","text":"increase the cost and/or reduce the availability of third-par ty determinations of fair market value. This may in turn","page_number":159,"box":{"x":70,"y":604,"width":810,"height":11}},{"id":"17aeab16-d0b5-496e-a728-4550106d9d09","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":159,"box":{"x":70,"y":619,"width":810,"height":11}},{"id":"63509ba2-d63b-47df-bef4-1c03dbe685a2","block_type":"box","text":"par ty determination of fair market value.","page_number":159,"box":{"x":70,"y":634,"width":285,"height":11}},{"id":"0b28b219-bf0a-4486-9c93-83169d34af17","block_type":"box","text":"Computation of Offering Price Per Share","page_number":159,"box":{"x":69,"y":665,"width":292,"height":11}},{"id":"5dd81c6a-8b5b-4810-abb2-b88da0ae5181","block_type":"box","text":"See “Computation of Offering Price Per Share” in Par t I of a Fund’s SAI for an illustration of the computation of","page_number":159,"box":{"x":102,"y":687,"width":791,"height":11}},{"id":"091a984c-fe54-43c2-a8f6-099280a9c028","block_type":"box","text":"the offering price for shares of your Fund.","page_number":159,"box":{"x":68,"y":702,"width":295,"height":12}},{"id":"b98b11c2-9862-4cca-a408-2f2b839ec7fb","block_type":"box","text":"PORTFOLIO TRANSACTIONS AND BROKERAGE","page_number":159,"box":{"x":303,"y":732,"width":373,"height":10}},{"id":"f7623c8e-7c62-4a16-ba51-bc775d669766","block_type":"box","text":"Transactions in Portfolio Securities","page_number":159,"box":{"x":68,"y":762,"width":257,"height":9}},{"id":"a3b3bf12-03cc-46d2-898d-6d4c8c2768c0","block_type":"box","text":"Subject to policies established by the Board of Directors, BlackRock is primarily responsible for the execution of","page_number":159,"box":{"x":102,"y":785,"width":798,"height":11}},{"id":"041d7740-366c-43d8-8259-ab2cbb428a7e","block_type":"box","text":"a Fund’s por tfolio transactions and the allocation of brokerage. BlackRock does not execute transactions through any","page_number":159,"box":{"x":69,"y":800,"width":839,"height":11}},{"id":"59f979d2-592f-4cfb-a5ca-508fa60e6905","block_type":"box","text":"par ticular broker or dealer, but seeks to obtain the best net results for the Fund, taking into account cer tain factors","page_number":159,"box":{"x":70,"y":815,"width":822,"height":11}},{"id":"868f8b60-315d-4e3f-9787-4ab6170f7f6e","block_type":"box","text":"set out below. While BlackRock generally seeks reasonable trade execution costs, a Fund does not necessarily pay","page_number":159,"box":{"x":69,"y":830,"width":820,"height":11}},{"id":"a9ed2eef-d2da-4975-a449-729d96f5e76f","block_type":"box","text":"the lowest spread or commission available, and payment of the lowest commission or spread is not necessarily","page_number":159,"box":{"x":68,"y":845,"width":798,"height":11}},{"id":"c3947c53-b402-4bfe-a20d-6965bc16ab7c","block_type":"box","text":"consistent with obtaining the best price and execution in par ticular transactions. Subject to applicable legal","page_number":159,"box":{"x":69,"y":860,"width":765,"height":12}},{"id":"eed2d56b-4d36-49a8-9bda-b2ee640930a8","block_type":"box","text":"requirements, BlackRock may select a broker based par tly upon brokerage or research services provided to","page_number":159,"box":{"x":69,"y":876,"width":768,"height":11}},{"id":"c48bc10d-f904-4db0-9125-61ab09c0682a","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":159,"box":{"x":70,"y":891,"width":830,"height":11}},{"id":"b34ed676-ad7a-4c1f-9b8a-45ef5c6f5318","block_type":"box","text":"II-124","page_number":159,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"4f91dd6e-1efa-42ee-9385-354ae38ec7ad","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":159,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"f3f30af1-83c3-410e-9c64-fe9d5aecaf26","block_type":"box","text":"commission than other brokers would charge if BlackRock determines in good faith that the commission is","page_number":160,"box":{"x":69,"y":45,"width":760,"height":11}},{"id":"248d8d0f-4764-443f-9e78-f49f60f2e64b","block_type":"box","text":"reasonable in relation to the services provided.","page_number":160,"box":{"x":69,"y":60,"width":336,"height":11}},{"id":"b5a27183-52a3-4f91-a0ba-0ca006e27261","block_type":"box","text":"In the case of Feeder Funds, because each Feeder Fund generally invests exclusively in beneficial interests of a","page_number":160,"box":{"x":102,"y":82,"width":794,"height":12}},{"id":"401feda7-5efe-4615-a07d-e7317efff76f","block_type":"box","text":"Master Por tfolio, it is expected that all transactions in por tfolio securities will be entered into by the Master Por tfolio.","page_number":160,"box":{"x":70,"y":98,"width":835,"height":11}},{"id":"b67a3d5a-64fc-4141-b4a2-73eeefd8e4ac","block_type":"box","text":"In selecting brokers or dealers to execute por tfolio transactions, the Manager and sub-advisers seek to obtain","page_number":160,"box":{"x":102,"y":120,"width":784,"height":12}},{"id":"e6fd4f4b-f1d2-4732-8f95-f7b1393b90e5","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":160,"box":{"x":68,"y":135,"width":829,"height":12}},{"id":"d91fb704-90e2-4f1d-9070-9b40b96a8d15","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":160,"box":{"x":69,"y":150,"width":802,"height":12}},{"id":"7c544f5b-b0e3-4a73-95a9-026538bd88f2","block_type":"box","text":"(ii) the desired timing of the transaction; (iii) BlackRock’s knowledge of the expected commission rates and spreads","page_number":160,"box":{"x":69,"y":166,"width":826,"height":11}},{"id":"4fe78cad-2cd0-47b3-b87b-d9418afc0fe6","block_type":"box","text":"currently available; (iv) the activity existing and expected in the market for the par ticular security or instrument,","page_number":160,"box":{"x":69,"y":181,"width":789,"height":11}},{"id":"30d88980-d53b-446b-96da-2cd095b91959","block_type":"box","text":"including any anticipated execution difficulties; (v) the full range of brokerage services provided; (vi) the broker’s or","page_number":160,"box":{"x":70,"y":196,"width":818,"height":11}},{"id":"71b0f98f-bb3f-4edb-b719-5d0b33c1edc5","block_type":"box","text":"dealer’s capital; (vii) the quality of research and research services provided; (viii) the reasonableness of the","page_number":160,"box":{"x":69,"y":211,"width":769,"height":11}},{"id":"d2e7fc67-c398-4e81-8796-f97c366eb7d7","block_type":"box","text":"commission, dealer spread or its equivalent for the specific transaction; and (ix) BlackRock’s knowledge of any actual","page_number":160,"box":{"x":69,"y":226,"width":837,"height":11}},{"id":"785b644f-9097-4f63-ad31-a1920a729c96","block_type":"box","text":"or apparent operational problems of a broker or dealer.","page_number":160,"box":{"x":69,"y":241,"width":391,"height":11}},{"id":"5a3edef6-1697-45e2-b04c-1b319a1bf547","block_type":"box","text":"Section 28(e) of the Exchange Act (“Section 28(e)”) permits an investment adviser, under cer tain circumstances","page_number":160,"box":{"x":102,"y":264,"width":801,"height":11}},{"id":"d1b81fea-3598-4f94-a881-2b2be9f50bfb","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":160,"box":{"x":68,"y":279,"width":802,"height":11}},{"id":"8e18d8e2-bfc8-44e0-aa57-fcd009d2493a","block_type":"box","text":"another broker or dealer would have charged for effecting the same transaction in recognition of the value of","page_number":160,"box":{"x":69,"y":294,"width":775,"height":11}},{"id":"7cf43f21-4fe1-4ef8-9fb0-13473db31889","block_type":"box","text":"brokerage and research services provided by that broker or dealer. This includes commissions paid on riskless","page_number":160,"box":{"x":69,"y":309,"width":790,"height":11}},{"id":"48b77801-66f0-48d1-970c-b2c896b15c99","block_type":"box","text":"principal transactions under cer tain conditions. Brokerage and research services include: (1) furnishing advice as to","page_number":160,"box":{"x":70,"y":324,"width":827,"height":12}},{"id":"231eb3db-fb0e-4755-8af9-0c9ad432ce0e","block_type":"box","text":"the value of securities, including pricing and appraisal advice, credit analysis, risk measurement analysis,","page_number":160,"box":{"x":68,"y":339,"width":753,"height":12}},{"id":"a44d1170-15c9-478a-b192-69aa989a4f7d","block_type":"box","text":"per formance and other analysis, as well as the advisability of investing in, purchasing or selling securities, and the","page_number":160,"box":{"x":70,"y":355,"width":818,"height":11}},{"id":"d809bcfb-4789-4ebf-93fd-be92028b31c1","block_type":"box","text":"availability of securities or purchasers or sellers of securities; (2) furnishing analyses and repor ts concerning issuers,","page_number":160,"box":{"x":69,"y":370,"width":837,"height":11}},{"id":"4a9f2434-9389-4fe9-ba0f-beef3b4fb47a","block_type":"box","text":"industries, securities, economic factors and trends, por tfolio strategy, and the per formance of accounts; and","page_number":160,"box":{"x":70,"y":385,"width":775,"height":11}},{"id":"227c6a92-b23c-4172-983a-62ccd26dc4ec","block_type":"box","text":"(3) effecting securities transactions and per forming functions incidental to securities transactions (such as","page_number":160,"box":{"x":69,"y":400,"width":764,"height":11}},{"id":"0c0ed6b0-61c2-4579-a425-5ca8481000d0","block_type":"box","text":"clearance, settlement, and custody). BlackRock believes that access to independent investment research is","page_number":160,"box":{"x":69,"y":415,"width":770,"height":11}},{"id":"ed9d2e03-e0ee-4ac3-b3e4-cb5c0237dde9","block_type":"box","text":"beneficial to its investment decision-making processes and, therefore, to the Funds.","page_number":160,"box":{"x":69,"y":430,"width":599,"height":11}},{"id":"a8e433c0-8a83-494d-a991-6709b834bb51","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may par ticipate in client commission arrangements under which","page_number":160,"box":{"x":102,"y":453,"width":796,"height":11}},{"id":"c2760576-4323-407a-bf37-a5d2df3af907","block_type":"box","text":"BlackRock may execute transactions through a broker-dealer and request that the broker-dealer allocate a por tion of","page_number":160,"box":{"x":70,"y":468,"width":829,"height":11}},{"id":"16956b33-95b3-4488-86d5-83d571107b24","block_type":"box","text":"the commissions or commission credits to another firm that provides research to BlackRock. BlackRock believes that","page_number":160,"box":{"x":68,"y":483,"width":839,"height":11}},{"id":"0af4a3a7-de3a-48df-ab6a-127ab75f5370","block_type":"box","text":"research services obtained through soft dollar or commission sharing arrangements enhance its investment decision","page_number":160,"box":{"x":69,"y":498,"width":839,"height":11}},{"id":"768b5e61-8a4c-4c0d-8edb-a720b1ac44c8","block_type":"box","text":"making capabilities, thereby increasing the prospects for higher investment returns. BlackRock will engage only in","page_number":160,"box":{"x":69,"y":513,"width":809,"height":12}},{"id":"be303ebc-8c52-4a96-82a1-bb270f2234d8","block_type":"box","text":"soft dollar or commission sharing transactions that comply with the requirements of Section 28(e). Cer tain Funds","page_number":160,"box":{"x":69,"y":528,"width":808,"height":12}},{"id":"e8102327-50b8-4bf6-adf0-82482c39d86a","block_type":"box","text":"may be subject to additional regulations, including MiFID II. Under MiFID II, EU investment managers, including BIL,","page_number":160,"box":{"x":69,"y":544,"width":818,"height":11}},{"id":"8f4440bf-9f34-4f33-aaa1-aef3c47fc17b","block_type":"box","text":"pay for any research out of their own resources and not through soft dollars or commission sharing arrangements.","page_number":160,"box":{"x":70,"y":559,"width":813,"height":11}},{"id":"1a00625b-9336-437f-b2fd-76a6b779f9f0","block_type":"box","text":"BlackRock regularly evaluates the soft dollar products and services utilized, as well as the overall soft dollar and","page_number":160,"box":{"x":70,"y":574,"width":801,"height":11}},{"id":"1bff31d5-3726-45d7-9ab1-a1d4707d6b70","block_type":"box","text":"commission sharing arrangements to ensure that trades are executed by firms that are regarded as best able to","page_number":160,"box":{"x":69,"y":589,"width":802,"height":11}},{"id":"6cee5979-82a1-43bc-bb2a-31ca2a1e8fc0","block_type":"box","text":"execute trades for client accounts, while at the same time providing access to the research and other services","page_number":160,"box":{"x":69,"y":604,"width":790,"height":11}},{"id":"fc82b263-209b-4816-92d3-e80b874f78ae","block_type":"box","text":"BlackRock views as impactful to its trading results.","page_number":160,"box":{"x":70,"y":619,"width":361,"height":11}},{"id":"3ad27a06-05c8-465c-93c9-e6faf31d2ec5","block_type":"box","text":"BlackRock, unless prohibited by applicable law, may utilize soft dollars and related services, including research","page_number":160,"box":{"x":102,"y":642,"width":791,"height":11}},{"id":"305f824a-7331-4315-bbff-6fb4453407be","block_type":"box","text":"(whether prepared by the broker-dealer or prepared by a third-par ty and provided to BlackRock by the broker-dealer)","page_number":160,"box":{"x":69,"y":657,"width":819,"height":11}},{"id":"d9220eb3-b647-4d3a-9a5d-eecc8035cb18","block_type":"box","text":"and execution or brokerage services within applicable rules and BlackRock’s policies to the extent that such","page_number":160,"box":{"x":69,"y":672,"width":772,"height":11}},{"id":"c2d4e122-ab69-41be-9ff0-46f997c4a723","block_type":"box","text":"permitted services do not compromise BlackRock’s ability to seek to obtain best execution. In this regard, the","page_number":160,"box":{"x":70,"y":687,"width":785,"height":11}},{"id":"fdbc202a-118e-4367-b606-b481586e7df0","block_type":"box","text":"por tfolio management investment and/or trading teams may consider a variety of factors, including the degree to","page_number":160,"box":{"x":70,"y":702,"width":806,"height":12}},{"id":"d68e635b-fa19-4d55-9af6-0d8c59353dce","block_type":"box","text":"which the broker-dealer: (a) provides access to company management; (b) provides access to their analysts;","page_number":160,"box":{"x":68,"y":718,"width":772,"height":11}},{"id":"d12e08f6-442b-4334-925e-9a8048a74667","block_type":"box","text":"(c) provides meaningful/insightful research notes on companies or other potential investments; (d) facilitates calls on","page_number":160,"box":{"x":69,"y":732,"width":838,"height":12}},{"id":"4809f9cc-709d-4525-b780-678237848232","block_type":"box","text":"which meaningful or insightful ideas about companies or potential investments are discussed; (e) facilitates","page_number":160,"box":{"x":68,"y":748,"width":769,"height":11}},{"id":"a8328bdc-8e8c-4653-8528-59a609823b29","block_type":"box","text":"conferences at which meaningful or insightful ideas about companies or potential investments are discussed; or","page_number":160,"box":{"x":69,"y":763,"width":801,"height":11}},{"id":"06c90605-1cf1-4e75-bee6-222bb2cb1678","block_type":"box","text":"(f) provides research tools such as market data, financial analysis, and other third-par ty related research and","page_number":160,"box":{"x":69,"y":778,"width":778,"height":11}},{"id":"3376bf7e-6eef-4f1f-93dd-43a1e635e9d9","block_type":"box","text":"brokerage tools that aid in the investment process.","page_number":160,"box":{"x":69,"y":793,"width":363,"height":11}},{"id":"eb2d5ee0-6879-4f9c-9399-ec3d4b38392d","block_type":"box","text":"Research-oriented services for which BlackRock, unless prohibited by applicable law, might pay with Fund","page_number":160,"box":{"x":102,"y":816,"width":749,"height":11}},{"id":"bbf80f36-58d8-4fcc-8a0f-64e2a91765a4","block_type":"box","text":"commissions may be in written form or through direct contact with individuals and may include information as to","page_number":160,"box":{"x":69,"y":831,"width":799,"height":11}},{"id":"cc4609f3-2177-4110-9b29-7b57ed67731b","block_type":"box","text":"par ticular companies or industries and securities or groups of securities, as well as market, economic, or","page_number":160,"box":{"x":70,"y":846,"width":752,"height":11}},{"id":"d6de3793-6f83-4e82-a25a-cb8cb905b6a2","block_type":"box","text":"institutional advice and statistical information, political developments and technical market information that assists","page_number":160,"box":{"x":70,"y":861,"width":823,"height":11}},{"id":"4e04ba28-f378-4de3-b1b9-d27d001d16ca","block_type":"box","text":"in the valuation of investments. Except as noted immediately below, research services furnished by brokers may be","page_number":160,"box":{"x":70,"y":876,"width":822,"height":11}},{"id":"c0e1214d-9dd9-4008-ae7a-0f2c8b8a3304","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":160,"box":{"x":69,"y":891,"width":840,"height":12}},{"id":"ecf2285a-000c-43a8-9bb9-8fc1fecbbf34","block_type":"box","text":"that paid commissions to the broker providing such services. In some cases, research information received from","page_number":160,"box":{"x":68,"y":906,"width":805,"height":12}},{"id":"3cb5a0fd-b558-4173-a90d-a1ca19618985","block_type":"box","text":"II-125","page_number":160,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"4c7db9b2-2fb3-4111-b001-0dbe71f616c8","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":160,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0ed1a19d-8679-4eb7-a8ca-509379dea8df","block_type":"box","text":"brokers by mutual fund management personnel, or personnel principally responsible for BlackRock’s individually","page_number":161,"box":{"x":69,"y":45,"width":798,"height":11}},{"id":"6c693a47-0311-4719-8333-a3dbe2d2770b","block_type":"box","text":"managed por tfolios, is not necessarily shared by and between such personnel. Any investment advisory or other fees","page_number":161,"box":{"x":69,"y":60,"width":836,"height":11}},{"id":"02b9439c-117f-405a-ac79-6603771e7156","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":161,"box":{"x":70,"y":75,"width":832,"height":11}},{"id":"e6491e95-0a30-4c81-9edd-44834c9a9e23","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":161,"box":{"x":70,"y":90,"width":798,"height":11}},{"id":"a91a74be-4d97-4c4e-9d11-6a6000171ec9","block_type":"box","text":"occurs BlackRock makes a good faith allocation, under all the circumstances, between the research and non","page_number":161,"box":{"x":69,"y":105,"width":780,"height":11}},{"id":"c20c1aba-8b31-4884-8557-a85de792b261","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":161,"box":{"x":69,"y":120,"width":827,"height":12}},{"id":"dedab526-79ef-409f-8302-3b8dc3b55cfc","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":161,"box":{"x":69,"y":135,"width":821,"height":12}},{"id":"074ec615-0b86-4b84-a701-40d36e33248d","block_type":"box","text":"non-research purposes. In making this good faith allocation, BlackRock faces a potential conflict of interest, but","page_number":161,"box":{"x":69,"y":150,"width":797,"height":12}},{"id":"26a1264b-da97-4693-89ed-dfff67f82e68","block_type":"box","text":"BlackRock believes that its allocation procedures are reasonably designed to ensure that it appropriately allocates","page_number":161,"box":{"x":70,"y":166,"width":815,"height":11}},{"id":"619adac7-d394-417b-b13c-9dfccb81d9cd","block_type":"box","text":"the anticipated use of such services to their research and non-research uses.","page_number":161,"box":{"x":68,"y":181,"width":555,"height":11}},{"id":"2a2d4b50-2524-4465-8543-2af5313c3a89","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":161,"box":{"x":102,"y":203,"width":802,"height":12}},{"id":"75b9126a-8559-47bf-b7a6-e2dba5d8849b","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":161,"box":{"x":68,"y":218,"width":825,"height":12}},{"id":"5ef183ec-9045-438a-b5a1-d71d16bb5b5d","block_type":"box","text":"or agree with clients to have research costs paid by clients through research payment accounts that are directly","page_number":161,"box":{"x":69,"y":234,"width":798,"height":11}},{"id":"66b64f25-0dc9-4452-b94e-c9b9dfdb9b06","block_type":"box","text":"funded or funded by a specific client research charge collected alongside execution commissions, provided that the","page_number":161,"box":{"x":68,"y":249,"width":824,"height":11}},{"id":"15ae82f5-e293-427e-b18f-5e1e1ec54f23","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":161,"box":{"x":70,"y":264,"width":812,"height":11}},{"id":"891c636b-f87a-4ff3-a65f-3ceff0441224","block_type":"box","text":"resources and not through soft dollars or commission sharing arrangements.","page_number":161,"box":{"x":69,"y":279,"width":547,"height":11}},{"id":"ce16f515-4f35-47a6-817f-ab8e6ddc6a73","block_type":"box","text":"Payments of commissions to brokers who are affiliated persons of the Fund, or the Master Por tfolio with respect","page_number":161,"box":{"x":102,"y":302,"width":804,"height":11}},{"id":"6742bf1c-dbad-4edb-8077-a858d020ba4d","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":161,"box":{"x":68,"y":317,"width":806,"height":11}},{"id":"26b7edf6-1dda-491a-a505-aaa3b7d0b518","block_type":"box","text":"Investment Company Act. Subject to policies established by the Board of Directors of the Master Por tfolio, BlackRock","page_number":161,"box":{"x":70,"y":332,"width":836,"height":11}},{"id":"12f67268-e7f9-4d3e-9665-e7f4676b3aef","block_type":"box","text":"is primarily responsible for the execution of the Master Por tfolio’s por tfolio transactions and the allocation of","page_number":161,"box":{"x":70,"y":347,"width":777,"height":11}},{"id":"5cfb6f37-9cb7-4a13-b67a-4f5139c23f08","block_type":"box","text":"brokerage.","page_number":161,"box":{"x":69,"y":362,"width":74,"height":11}},{"id":"526f0bf8-ff5f-4ace-8278-a552f805d958","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":161,"box":{"x":102,"y":385,"width":781,"height":11}},{"id":"99d979aa-f9c2-4701-b5a9-03faa2667367","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":161,"box":{"x":68,"y":400,"width":810,"height":11}},{"id":"a9048452-0032-4d81-af9e-5c28f4934dab","block_type":"box","text":"research services. FINRA has adopted rules expressly permitting these types of arrangements under cer tain","page_number":161,"box":{"x":69,"y":415,"width":771,"height":11}},{"id":"ecc8f939-8d27-4733-86be-493d6542ceab","block_type":"box","text":"circumstances. Generally, the broker will provide research “credits” in these situations at a rate that is higher than","page_number":161,"box":{"x":69,"y":430,"width":818,"height":11}},{"id":"99f3cb6c-5952-41d3-a859-123d9a5326e9","block_type":"box","text":"that available for typical secondary market transactions. These arrangements may not fall within the safe harbor of","page_number":161,"box":{"x":68,"y":445,"width":821,"height":12}},{"id":"812dd14c-865e-4894-944c-46b3f758efdb","block_type":"box","text":"Section 28(e).","page_number":161,"box":{"x":69,"y":460,"width":99,"height":11}},{"id":"c7bceb8d-f060-452f-af79-ef9c63df1fe3","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":161,"box":{"x":102,"y":483,"width":755,"height":9}},{"id":"dd4b58be-8e2a-4056-acb1-631412136310","block_type":"box","text":"brokers or dealers to execute por tfolio transactions for a Fund; however, whether or not a par ticular broker or dealer","page_number":161,"box":{"x":69,"y":498,"width":828,"height":11}},{"id":"7700a038-3c2b-4f71-b63a-0de8f17c3c80","block_type":"box","text":"sells shares of the mutual funds advised by BlackRock neither qualifies nor disqualifies such broker or dealer to","page_number":161,"box":{"x":69,"y":513,"width":799,"height":11}},{"id":"e8deb11c-0daa-40cc-bf91-aaef4b018ea5","block_type":"box","text":"execute transactions for those mutual funds.","page_number":161,"box":{"x":69,"y":528,"width":319,"height":9}},{"id":"8665ab51-8de6-47b8-a47a-bc082ccde2dd","block_type":"box","text":"Each Fund anticipates that its brokerage transactions involving foreign securities generally will be conducted","page_number":161,"box":{"x":102,"y":551,"width":770,"height":11}},{"id":"ac4ad7bb-2fa3-463b-9e3f-040aaa1f82e7","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":161,"box":{"x":70,"y":566,"width":825,"height":11}},{"id":"c7f0ddb6-a32c-452c-8a6e-621b52247378","block_type":"box","text":"in the form of depositary receipts, or other securities conver tible into foreign equity securities. Depositary receipts","page_number":161,"box":{"x":70,"y":581,"width":816,"height":12}},{"id":"c9296789-72e3-46b6-a93a-89719693b345","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":161,"box":{"x":69,"y":597,"width":805,"height":11}},{"id":"19b636bc-833f-4edc-a14d-bf75f3e7f709","block_type":"box","text":"American Depositary Receipts, like other securities traded in the United States, will be subject to negotiated","page_number":161,"box":{"x":68,"y":612,"width":773,"height":11}},{"id":"f1ba3f78-85e8-493f-ad89-9fabd27f63a9","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":161,"box":{"x":69,"y":627,"width":798,"height":11}},{"id":"cd734d9a-cba3-483b-9a1c-080f472f8552","block_type":"box","text":"intends to manage its por tfolio so as to give reasonable assurance that it will be able to obtain U.S. dollars to the","page_number":161,"box":{"x":70,"y":642,"width":812,"height":11}},{"id":"8e8ef177-2131-4784-bf51-b958c4227218","block_type":"box","text":"extent necessary to meet anticipated redemptions. Under present conditions, it is not believed that these","page_number":161,"box":{"x":69,"y":657,"width":754,"height":11}},{"id":"9d4efdd1-8aab-4313-bae3-3da75b7c310c","block_type":"box","text":"considerations will have a significant effect on a Fund’s por tfolio strategies.","page_number":161,"box":{"x":69,"y":672,"width":540,"height":11}},{"id":"20830e47-a552-4248-a8f6-0ad86f114575","block_type":"box","text":"See “Por tfolio Transactions and Brokerage” in the SAI for information about the brokerage commissions paid by","page_number":161,"box":{"x":102,"y":695,"width":798,"height":11}},{"id":"14204f32-5475-490a-a398-915a19001230","block_type":"box","text":"your Fund, including commissions paid to affiliates, if any, for the periods indicated.","page_number":161,"box":{"x":68,"y":710,"width":597,"height":11}},{"id":"035c4b92-09d0-4ec5-be74-c48d9b2432a8","block_type":"box","text":"Each Fund may invest in cer tain securities traded in the OTC market and intends to deal directly with the dealers","page_number":161,"box":{"x":102,"y":733,"width":802,"height":11}},{"id":"5830596f-a921-4141-9efa-20c525e18d55","block_type":"box","text":"who make a market in the par ticular securities, except in those circumstances in which better prices and execution","page_number":161,"box":{"x":68,"y":748,"width":822,"height":11}},{"id":"edd38f0e-22f9-48a6-982d-a111bf35e7e3","block_type":"box","text":"are available elsewhere. Under the Investment Company Act, persons affiliated with a Fund and persons who are","page_number":161,"box":{"x":69,"y":763,"width":804,"height":11}},{"id":"31cf177e-57ee-4836-8683-33c5c0bfa694","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":161,"box":{"x":69,"y":778,"width":832,"height":11}},{"id":"b7053914-dd82-429d-9e50-4522b1a6dbe8","block_type":"box","text":"of securities unless a permissive order allowing such transactions is obtained from the Commission. Since","page_number":161,"box":{"x":69,"y":793,"width":762,"height":11}},{"id":"ccb653c6-e67c-44ac-a8a1-926ab84f16f6","block_type":"box","text":"transactions in the OTC market usually involve transactions with the dealers acting as principal for their own","page_number":161,"box":{"x":68,"y":808,"width":770,"height":11}},{"id":"a4eb1bc4-ba89-43e1-8b0e-d67616a6d23a","block_type":"box","text":"accounts, the Funds will not deal with affiliated persons in connection with such transactions. However, an affiliated","page_number":161,"box":{"x":69,"y":823,"width":828,"height":11}},{"id":"d74a9a1f-a76f-4798-b510-f18b2044da5d","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":161,"box":{"x":70,"y":838,"width":814,"height":12}},{"id":"92c99305-5d70-429f-82c8-427968b5b65e","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":161,"box":{"x":69,"y":853,"width":825,"height":12}},{"id":"706ecec1-bafe-49c6-b4af-69b985454ca5","block_type":"box","text":"commission received by non-affiliated brokers in connection with comparable transactions.","page_number":161,"box":{"x":69,"y":869,"width":645,"height":11}},{"id":"50cdae17-8477-4a0a-bb75-cc07da0b7a43","block_type":"box","text":"OTC issues, including most fixed-income securities such as corporate debt and U.S. Government Securities, are","page_number":161,"box":{"x":102,"y":891,"width":797,"height":12}},{"id":"3961de54-4daa-4f8a-bf33-1d60b35fd5cc","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":161,"box":{"x":69,"y":906,"width":826,"height":12}},{"id":"3ee752e7-2519-4afe-bb52-b0980008760c","block_type":"box","text":"II-126","page_number":161,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"ce77185d-b68e-4aae-b20b-b5d3c1fee89b","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":161,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"51d1191a-e4f8-4778-a407-e9323a896d62","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":162,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"ec301afd-fabd-4cd4-802e-5347dc77eb0c","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":162,"box":{"x":69,"y":60,"width":833,"height":11}},{"id":"0f93161a-ef11-4fcc-a1d9-779d57241746","block_type":"box","text":"domestic securities will generally include a “spread,” which is the difference between the prices at which the dealer","page_number":162,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"549dbd44-ff9c-42f5-8e75-13419ae8c8ff","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":162,"box":{"x":70,"y":90,"width":730,"height":11}},{"id":"4d295865-4436-4d9d-ab28-9fff869dce64","block_type":"box","text":"Purchases of money market instruments by a Fund are made from dealers, underwriters and issuers. The Funds","page_number":162,"box":{"x":102,"y":113,"width":800,"height":11}},{"id":"d54d0209-0a7e-427f-b555-7a30d8dd992e","block_type":"box","text":"do not currently expect to incur any brokerage commission expense on such transactions because money market","page_number":162,"box":{"x":69,"y":128,"width":807,"height":11}},{"id":"fd653399-51d5-4bf5-a8f7-ba244f6ad1c9","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":162,"box":{"x":70,"y":143,"width":812,"height":11}},{"id":"f21cd910-0476-49cb-a6df-2cdac8216c32","block_type":"box","text":"stated commission. The price of the security, however, usually includes a profit to the dealer. Each money market","page_number":162,"box":{"x":69,"y":158,"width":807,"height":11}},{"id":"7f77f57d-e8c9-48e1-a961-8f8e23572fdd","block_type":"box","text":"fund intends to purchase only securities with remaining maturities of 397 days or less as determined in accordance","page_number":162,"box":{"x":68,"y":173,"width":827,"height":11}},{"id":"7a613be8-7335-4665-b061-556c4e9340f1","block_type":"box","text":"with the rules of the Commission. As a result, the por tfolio turnover rates of a money market fund will be relatively","page_number":162,"box":{"x":68,"y":188,"width":817,"height":11}},{"id":"dffa2e71-c63b-4421-a2c8-c2759cd31262","block_type":"box","text":"high. However, because brokerage commissions will not normally be paid with respect to investments made by a","page_number":162,"box":{"x":69,"y":204,"width":802,"height":11}},{"id":"a0969703-ef78-47fd-bf07-8079edc8076b","block_type":"box","text":"money market fund, the turnover rates should not adversely affect the Fund’s NAVs or net income.","page_number":162,"box":{"x":69,"y":218,"width":700,"height":12}},{"id":"a02587c2-f579-43c6-a902-9ca0d6ff7ce2","block_type":"box","text":"Securities purchased in underwritten offerings include a fixed amount of compensation to the underwriter,","page_number":162,"box":{"x":102,"y":241,"width":756,"height":11}},{"id":"43d39748-f960-41f2-a792-9046d2400827","block_type":"box","text":"generally referred to as the underwriter’s concession or discount. When offered securities are purchased or sold","page_number":162,"box":{"x":68,"y":256,"width":804,"height":12}},{"id":"7a31e93c-a6c1-40b8-8012-312a61f8288c","block_type":"box","text":"directly from or to an issuer, no commissions or discounts are paid except where required by local markets.","page_number":162,"box":{"x":69,"y":271,"width":766,"height":12}},{"id":"8220832c-b2f5-4f17-b3de-e8771ecdf3e5","block_type":"box","text":"The Manager or sub-advisers may seek to obtain an under taking from issuers of commercial paper or dealers","page_number":162,"box":{"x":101,"y":294,"width":780,"height":11}},{"id":"341660a2-ab5c-400e-9bff-bee40629d5a2","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":162,"box":{"x":69,"y":309,"width":826,"height":11}},{"id":"788114e7-315d-41d0-8083-36b98eed20f5","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":162,"box":{"x":69,"y":324,"width":806,"height":11}},{"id":"df84ee26-a9c8-4136-a276-280b9e3b55eb","block_type":"box","text":"anticipated need for liquidity makes such action desirable. Any such repurchase prior to maturity reduces the","page_number":162,"box":{"x":69,"y":339,"width":776,"height":12}},{"id":"ccef3447-dae6-4428-b7f9-9a2cb753adeb","block_type":"box","text":"possibility that a Fund would incur a capital loss in liquidating commercial paper, especially if interest rates have","page_number":162,"box":{"x":70,"y":355,"width":800,"height":11}},{"id":"8d07d9cc-e2de-4228-9203-9b184cb9be04","block_type":"box","text":"risen since acquisition of such commercial paper.","page_number":162,"box":{"x":69,"y":370,"width":352,"height":11}},{"id":"ea26300a-c1e3-40c2-9a52-2b991cf0f804","block_type":"box","text":"Investment decisions for each Fund and for other investment accounts managed by the Manager or sub-advisers","page_number":162,"box":{"x":102,"y":392,"width":800,"height":12}},{"id":"6153305a-9a75-4128-a552-40f8c35c64c9","block_type":"box","text":"are made independently of each other in light of differing conditions. BlackRock allocates investments among client","page_number":162,"box":{"x":69,"y":407,"width":824,"height":12}},{"id":"5c0e741e-e0f3-442e-a232-13c18a3a4a7e","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":162,"box":{"x":69,"y":423,"width":828,"height":11}},{"id":"f193304d-0c4a-4a0a-ade9-23c63486db11","block_type":"box","text":"These factors include: (i) investment objectives or strategies for par ticular accounts, including sector, industry,","page_number":162,"box":{"x":68,"y":438,"width":788,"height":11}},{"id":"883fa159-9ec2-4d79-bbb9-572e701d0766","block_type":"box","text":"country or region and capitalization weightings, (ii) tax considerations of an account, (iii) risk or investment","page_number":162,"box":{"x":69,"y":453,"width":759,"height":11}},{"id":"be02f9dd-f08b-46f3-9702-df11584899f4","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":162,"box":{"x":69,"y":468,"width":780,"height":11}},{"id":"4b09a083-1911-4104-b6c2-d4c4f7d3cccd","block_type":"box","text":"available investment, (vi) cash availability and liquidity requirements for accounts, (vii) regulatory restrictions,","page_number":162,"box":{"x":69,"y":483,"width":777,"height":11}},{"id":"2078e57b-2b98-491a-ae58-edadd8c6f5eb","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":162,"box":{"x":69,"y":498,"width":788,"height":11}},{"id":"5db41f3e-2959-4949-906d-5906c839e763","block_type":"box","text":"approved by BlackRock’s general counsel. Moreover, investments may not be allocated to one client account over","page_number":162,"box":{"x":69,"y":514,"width":811,"height":11}},{"id":"5a0acd95-2430-440c-b6df-e745b75edbe5","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":162,"box":{"x":69,"y":528,"width":829,"height":12}},{"id":"84e273ed-0fb2-40a4-9016-876910ec514e","block_type":"box","text":"generate higher fees paid by one client account over another or to produce greater per formance compensation to","page_number":162,"box":{"x":68,"y":543,"width":808,"height":12}},{"id":"f6b293c2-4b50-4e39-bccd-50c436300961","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":162,"box":{"x":70,"y":559,"width":832,"height":11}},{"id":"a1c7fc33-2028-41a1-a34a-4f83e31231bf","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":162,"box":{"x":70,"y":574,"width":836,"height":11}},{"id":"8af4689b-5dd5-4cba-a91b-49b462e3a8f8","block_type":"box","text":"or (v) to manage or equalize investment per formance among different client accounts.","page_number":162,"box":{"x":69,"y":589,"width":613,"height":11}},{"id":"6ea52072-1271-4649-aab4-a2620b9c472f","block_type":"box","text":"Equity securities will generally be allocated among client accounts within the same investment mandate on a pro","page_number":162,"box":{"x":102,"y":612,"width":802,"height":11}},{"id":"e17d528d-1cc6-40c7-8e95-43de2d208beb","block_type":"box","text":"rata basis. All allocations of equity securities will be subject, where relevant, to share minimums established for","page_number":162,"box":{"x":69,"y":627,"width":800,"height":11}},{"id":"83107961-430d-42f9-a94f-457a72dd9ce8","block_type":"box","text":"accounts and compliance constraints.","page_number":162,"box":{"x":69,"y":642,"width":269,"height":11}},{"id":"9da3336a-d2d8-4218-8015-e89a09032276","block_type":"box","text":"Initial public offerings of securities may be over-subscribed and subsequently trade at a premium in the","page_number":162,"box":{"x":102,"y":664,"width":736,"height":12}},{"id":"be5b96c3-80b6-43a7-bc50-a49d45f9899d","block_type":"box","text":"secondary market. In these situations, the supply of securities available for client accounts is often less than the","page_number":162,"box":{"x":69,"y":680,"width":808,"height":11}},{"id":"6eb301d8-8c9d-438c-8b41-e6ea65737484","block_type":"box","text":"amount of securities the accounts would otherwise take. In order to allocate these investments fairly and equitably","page_number":162,"box":{"x":69,"y":695,"width":821,"height":11}},{"id":"5fc2b7ae-7400-48e8-af3f-08903aec36df","block_type":"box","text":"among client accounts over time, each por tfolio manager or a member of his or her respective investment team will","page_number":162,"box":{"x":69,"y":710,"width":823,"height":11}},{"id":"d57e031f-a452-4dce-8ec4-2a13aec8b9b5","block_type":"box","text":"indicate to BlackRock’s trading desk their level of interest in a par ticular offering with respect to eligible client","page_number":162,"box":{"x":70,"y":725,"width":783,"height":11}},{"id":"0603f705-5e4f-4f50-8671-f514d14a07e2","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":162,"box":{"x":69,"y":740,"width":793,"height":11}},{"id":"898efc70-c4ab-4447-9aad-58b8b28cf45a","block_type":"box","text":"eligible for par ticular client accounts that are managed by por tfolio teams who have indicated interest in the offering","page_number":162,"box":{"x":69,"y":755,"width":831,"height":11}},{"id":"6059aa63-6212-4fe3-9436-689489b0fe63","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":162,"box":{"x":69,"y":770,"width":828,"height":11}},{"id":"9389d90d-178b-4c3f-98e6-4ecb2173a314","block_type":"box","text":"the case of international equity securities, the country where the offering is taking place and the investment mandate","page_number":162,"box":{"x":68,"y":785,"width":839,"height":12}},{"id":"f8b797ac-46e3-457d-9fac-28aa64539ae9","block_type":"box","text":"of the client account. Generally, shares received during the initial public offering will be allocated among par ticipating","page_number":162,"box":{"x":69,"y":801,"width":835,"height":11}},{"id":"e73848b6-a6f9-45e6-ba06-76750a033e70","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":162,"box":{"x":69,"y":816,"width":819,"height":11}},{"id":"eb1c1dd4-bbd6-474f-bc96-f7d63ec18c9a","block_type":"box","text":"allocated among all accounts for which the investment is eligible, por tfolio managers may rotate such investment","page_number":162,"box":{"x":69,"y":831,"width":808,"height":11}},{"id":"6029464a-062f-4ccb-a5b3-4e9e52dd33a0","block_type":"box","text":"oppor tunities among one or more accounts so long as the rotation system provides for fair access for all client","page_number":162,"box":{"x":69,"y":846,"width":791,"height":11}},{"id":"b62169fc-7b18-4449-9675-5e7d1fb5ab71","block_type":"box","text":"accounts over time. Other allocation methodologies that are considered by BlackRock to be fair and equitable to","page_number":162,"box":{"x":69,"y":861,"width":799,"height":11}},{"id":"3dd2817b-8355-41d6-bab3-e6292939f3b0","block_type":"box","text":"clients may be used as well.","page_number":162,"box":{"x":69,"y":876,"width":200,"height":11}},{"id":"6c11ef3d-3fb8-46aa-873b-0aac949dff60","block_type":"box","text":"II-127","page_number":162,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"4728b9e0-e9bf-4e7c-8cef-216c3472ca2c","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":162,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"891648be-c332-440f-bfdd-33e69d329a79","block_type":"box","text":"Because different accounts may have differing investment objectives and policies, BlackRock may buy and sell","page_number":163,"box":{"x":102,"y":45,"width":789,"height":11}},{"id":"34168369-5920-4a99-8d53-0c0c20a037dd","block_type":"box","text":"the same securities at the same time for different clients based on the par ticular investment objective, guidelines","page_number":163,"box":{"x":68,"y":60,"width":815,"height":11}},{"id":"5fe3cf33-7a8b-4ccd-8dd4-1e4fe0c2d599","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":163,"box":{"x":69,"y":75,"width":835,"height":11}},{"id":"bd7673b0-525a-4614-9396-64299cac198e","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":163,"box":{"x":68,"y":90,"width":833,"height":11}},{"id":"07438f78-e106-4963-9d10-8c6f98c3d644","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":163,"box":{"x":69,"y":105,"width":829,"height":11}},{"id":"7f334e29-8eec-49bb-b945-3a2f2c2d3744","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":163,"box":{"x":69,"y":120,"width":825,"height":12}},{"id":"d37dc9d6-09c2-405f-9e51-b3ceaeb4ecf3","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":163,"box":{"x":69,"y":135,"width":806,"height":11}},{"id":"8d6ab928-23a3-43d5-bd3e-70eb453c2f16","block_type":"box","text":"adversely impacting other BlackRock clients that still hold the security. If purchases or sales of securities arise for","page_number":163,"box":{"x":69,"y":150,"width":814,"height":12}},{"id":"3cba585b-fdb4-4ef0-ab7e-a4e7f76637a8","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":163,"box":{"x":69,"y":166,"width":836,"height":9}},{"id":"20b25c02-2958-4f5d-a007-81f7dff1a9a4","block_type":"box","text":"affiliate act as investment manager, transactions in such securities will be made, insofar as feasible, for the","page_number":163,"box":{"x":69,"y":181,"width":773,"height":11}},{"id":"a273ef51-f098-4ff3-8635-8fa63132b48b","block_type":"box","text":"respective funds and clients in a manner deemed equitable to all.","page_number":163,"box":{"x":69,"y":196,"width":467,"height":11}},{"id":"25ffcedf-f600-4d9e-a0c7-ecaf35df25e1","block_type":"box","text":"In cer tain instances, BlackRock may find it efficient for purposes of seeking to obtain best execution, to","page_number":163,"box":{"x":102,"y":218,"width":741,"height":12}},{"id":"9caf85a9-b5ba-4798-9ca9-6dcc72c87188","block_type":"box","text":"aggregate cer tain contemporaneous purchases or sale orders of its advisory accounts. In general, all","page_number":163,"box":{"x":69,"y":234,"width":721,"height":11}},{"id":"82c512c5-a0fe-4250-a19a-f51ff82986cc","block_type":"box","text":"contemporaneous trades for client accounts under management by the same por tfolio manager or investment team","page_number":163,"box":{"x":69,"y":249,"width":824,"height":11}},{"id":"5f5f15c5-16f9-40c7-a6fc-bd57dd6739f4","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":163,"box":{"x":68,"y":264,"width":795,"height":11}},{"id":"f08059fe-d8af-4fea-a053-a3c44e877ea2","block_type":"box","text":"oppor tunity to achieve a more favorable execution at a potentially lower execution cost. The costs associated with an","page_number":163,"box":{"x":69,"y":279,"width":834,"height":11}},{"id":"b0f39e52-1eb8-44c4-a9b2-4aec05cfd061","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":163,"box":{"x":69,"y":294,"width":783,"height":11}},{"id":"24efe381-f4a6-41eb-b637-9cca36d67d72","block_type":"box","text":"par ticular por tfolio manager or management team is filled at several different prices through multiple trades, all","page_number":163,"box":{"x":70,"y":309,"width":796,"height":11}},{"id":"dc7e079b-930f-407e-8ecb-a3fa4be0c1ec","block_type":"box","text":"accounts par ticipating in the order will receive the average price except in the case of cer tain international markets","page_number":163,"box":{"x":69,"y":324,"width":821,"height":12}},{"id":"93908694-93ea-492e-8013-9535be6e6dcc","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":163,"box":{"x":68,"y":339,"width":819,"height":12}},{"id":"4d1eadd8-e32f-43de-9498-f0caf652af1e","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":163,"box":{"x":70,"y":355,"width":771,"height":11}},{"id":"37052371-1d1b-4a79-831f-f92cd328be83","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":163,"box":{"x":68,"y":370,"width":815,"height":11}},{"id":"c2688a5f-3e0f-45e6-a8dd-e464228d84f1","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":163,"box":{"x":68,"y":385,"width":835,"height":11}},{"id":"eb9ca0f7-f115-4abd-88a8-6222b3dfd8ed","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":163,"box":{"x":68,"y":400,"width":817,"height":11}},{"id":"97cf02f7-47fd-4fd6-b9b0-237586a7c553","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":163,"box":{"x":68,"y":415,"width":823,"height":11}},{"id":"eb7b0c65-4577-4b06-9606-b6a160a1b7bb","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":163,"box":{"x":69,"y":430,"width":803,"height":11}},{"id":"2aed2a75-a5b1-4b6b-804d-e2d566283419","block_type":"box","text":"A Fund will not purchase securities during the existence of any underwriting or selling group relating to such","page_number":163,"box":{"x":101,"y":453,"width":767,"height":11}},{"id":"86d44d76-8985-47fe-b5fa-2650074eb6cf","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":163,"box":{"x":69,"y":468,"width":826,"height":11}},{"id":"b9181f16-369a-499c-a19a-f37e334af928","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":163,"box":{"x":69,"y":483,"width":816,"height":11}},{"id":"459bbe82-6c64-41db-9661-f1390fd3a56f","block_type":"box","text":"Investment Company Act. In no instance will por tfolio securities be purchased from or sold to BlackRock, BRIL or any","page_number":163,"box":{"x":70,"y":498,"width":833,"height":11}},{"id":"a2d6b104-b499-4a8f-855c-914a26591e55","block_type":"box","text":"affiliated person of the foregoing entities except as permitted by Commission exemptive order or by applicable law.","page_number":163,"box":{"x":69,"y":513,"width":818,"height":12}},{"id":"340a3536-2326-4ed2-bdc8-01ff48b17f78","block_type":"box","text":"A Fund’s purchase and sale orders for securities may be combined with those of other investment companies,","page_number":163,"box":{"x":101,"y":536,"width":786,"height":11}},{"id":"aa2c6209-77c5-4543-8911-f972f31ae9d5","block_type":"box","text":"clients or accounts that BlackRock manages or advises. If purchases or sales of por tfolio securities of a Fund and","page_number":163,"box":{"x":69,"y":551,"width":814,"height":11}},{"id":"7ec9d051-8714-47be-88a4-1c855946c270","block_type":"box","text":"one or more other accounts managed or advised by BlackRock are considered at or about the same time,","page_number":163,"box":{"x":69,"y":566,"width":751,"height":11}},{"id":"ed60bac7-4318-4c79-b608-19073435a8f2","block_type":"box","text":"transactions in such securities are allocated among the Fund and the other accounts in a manner deemed equitable","page_number":163,"box":{"x":68,"y":582,"width":829,"height":11}},{"id":"4a55c7a7-1cc3-44d6-b051-a2c3d79a0fed","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":163,"box":{"x":68,"y":596,"width":799,"height":12}},{"id":"367c6cdf-7bcc-4cad-ba0d-b50669fcf934","block_type":"box","text":"security as far as a Fund is concerned. However, in other cases, it is possible that the ability to par ticipate in volume","page_number":163,"box":{"x":69,"y":612,"width":834,"height":11}},{"id":"26cd9b8a-0894-4c07-94f5-9c4d7549678b","block_type":"box","text":"transactions and to negotiate lower transaction costs will be beneficial to the Fund. BlackRock may deal, trade and","page_number":163,"box":{"x":68,"y":627,"width":820,"height":11}},{"id":"aa3af10e-ae27-495d-8a0a-3052b229eee9","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":163,"box":{"x":70,"y":642,"width":812,"height":11}},{"id":"d75284d3-e097-4857-9443-8b5b8f224d5b","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":163,"box":{"x":69,"y":657,"width":781,"height":10}},{"id":"b5067be1-49a3-47fd-a7c3-e9066d0466dd","block_type":"box","text":"conformity with the Investment Company Act and Commission rules and regulations. Under these provisions, any","page_number":163,"box":{"x":69,"y":672,"width":805,"height":11}},{"id":"56a4cbd7-b510-4f3b-bb12-ab3ef4c00e9f","block_type":"box","text":"commissions paid to affiliated brokers or dealers must be reasonable and fair compared to the commissions charged","page_number":163,"box":{"x":69,"y":687,"width":840,"height":11}},{"id":"fae4633a-a381-4008-9d2f-1e2adf73201e","block_type":"box","text":"by other brokers or dealers in comparable transactions. A Fund will not deal with affiliates in principal transactions","page_number":163,"box":{"x":69,"y":702,"width":815,"height":11}},{"id":"bdffb49b-26c6-474d-9e9a-35b741ca5b81","block_type":"box","text":"unless permitted by applicable Commission rules or regulations, or by Commission exemptive order.","page_number":163,"box":{"x":69,"y":718,"width":713,"height":11}},{"id":"0a10ac8b-3dd9-4ad8-ac24-7c7fcca30c9f","block_type":"box","text":"Portfolio Turnover","page_number":163,"box":{"x":69,"y":748,"width":129,"height":9}},{"id":"77cd7528-5259-4e4b-b33f-a4505d6f7a61","block_type":"box","text":"The por tfolio turnover rate is calculated by dividing the lesser of a Fund’s annual sales or purchases of por tfolio","page_number":163,"box":{"x":101,"y":770,"width":798,"height":12}},{"id":"92812e0f-f846-4429-95c2-57d4a1eead1b","block_type":"box","text":"securities (exclusive of purchases or sales of U.S. Government Securities and all other securities whose maturities at","page_number":163,"box":{"x":69,"y":785,"width":839,"height":11}},{"id":"6ed2cd8c-e6de-4fa7-b347-bb4c5ef16236","block_type":"box","text":"the time of acquisition were one year or less) by the monthly average value of the securities in the por tfolio during","page_number":163,"box":{"x":68,"y":801,"width":814,"height":11}},{"id":"a6ad4a1e-0931-4e8d-a54a-5bacafcd6f6a","block_type":"box","text":"the year. A high rate of por tfolio turnover results in cer tain tax consequences, such as increased capital gain","page_number":163,"box":{"x":68,"y":816,"width":777,"height":11}},{"id":"01d33b7c-9e45-4b86-a2d8-823fd7902604","block_type":"box","text":"dividends and/or ordinary income dividends, and in correspondingly greater transaction costs in the form of dealer","page_number":163,"box":{"x":69,"y":831,"width":818,"height":11}},{"id":"4bdb37c0-486c-4b65-ba21-38750f21aef1","block_type":"box","text":"spreads and brokerage commissions, which are borne directly by a Fund.","page_number":163,"box":{"x":69,"y":846,"width":519,"height":11}},{"id":"0921690d-0ed7-4741-a887-7cf1ab1e90d3","block_type":"box","text":"II-128","page_number":163,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"cc3ddff0-c7aa-4245-a461-95895a17ab72","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":163,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"73cb5730-f91a-420b-bae4-83501b1a32ef","block_type":"box","text":"DIVIDENDS AND TAXES","page_number":164,"box":{"x":396,"y":45,"width":186,"height":10}},{"id":"a218b919-905e-4eb8-9214-60bbdd5582a1","block_type":"box","text":"Dividends","page_number":164,"box":{"x":69,"y":76,"width":69,"height":8}},{"id":"64e014a7-fdfe-4658-a8b0-1fe1fa82ae78","block_type":"box","text":"Each Fund intends to distribute substantially all of its net investment income, if any. Dividends from such net","page_number":164,"box":{"x":102,"y":98,"width":776,"height":11}},{"id":"1164aa5b-8db0-404e-a0ea-5e496cddfaa4","block_type":"box","text":"investment income are paid as set for th in each Fund’s Prospectus. Each Fund also intends to distribute all net","page_number":164,"box":{"x":70,"y":113,"width":795,"height":11}},{"id":"43914315-bf6d-43ce-8b8e-475810279895","block_type":"box","text":"realized capital gains, if any, as set for th in such Fund’s Prospectus. From time to time, a Fund may declare a special","page_number":164,"box":{"x":69,"y":128,"width":837,"height":12}},{"id":"79dec2a5-e997-44e2-942c-1088e11441c0","block_type":"box","text":"distribution at or about the end of the calendar year in order to comply with U.S. federal tax requirements that cer tain","page_number":164,"box":{"x":69,"y":143,"width":836,"height":12}},{"id":"404b6f0a-8ae5-49ac-ac1a-3c508b7128eb","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":164,"box":{"x":70,"y":159,"width":822,"height":11}},{"id":"c23232c8-6777-4203-b232-30128314e218","block_type":"box","text":"net income from cer tain foreign currency transactions, such income will be distributed at least annually.","page_number":164,"box":{"x":69,"y":174,"width":739,"height":11}},{"id":"51ae455e-7e89-4e8a-8d76-281b26b85a08","block_type":"box","text":"For information concerning the manner in which dividends may be reinvested automatically in shares of each","page_number":164,"box":{"x":102,"y":196,"width":773,"height":12}},{"id":"b8c1c8cb-078c-4805-99a7-ef6d33d0e4d0","block_type":"box","text":"Fund, as applicable, see “Shareholder Services — Automatic Dividend Reinvestment Plan.” Shareholders may also","page_number":164,"box":{"x":70,"y":212,"width":819,"height":11}},{"id":"78868ac0-e4c9-4130-b0a9-19cf9e763b4b","block_type":"box","text":"elect in writing to receive any such dividends in cash. Dividends are taxable to shareholders, as discussed below,","page_number":164,"box":{"x":69,"y":227,"width":807,"height":11}},{"id":"50160b42-a9ed-4512-a779-c7b7f5cc5994","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":164,"box":{"x":68,"y":242,"width":800,"height":11}},{"id":"d9d5bff1-4cce-41ea-9de4-99d067b8a82c","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":164,"box":{"x":69,"y":257,"width":801,"height":11}},{"id":"bc8fa8c3-4fd3-44c9-9cb6-4c2f3f945aae","block_type":"box","text":"result of the service, distribution and higher transfer agency fees applicable to CDSC shares, the service fees","page_number":164,"box":{"x":69,"y":272,"width":783,"height":11}},{"id":"d9f783d8-f796-4020-84c1-83c601ba0c2c","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":164,"box":{"x":69,"y":287,"width":820,"height":11}},{"id":"b7a5e564-25ff-4191-9105-3c34a2f94b34","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":164,"box":{"x":69,"y":302,"width":794,"height":11}},{"id":"d583f699-adf6-44ae-9bfd-43f0735f93c9","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":164,"box":{"x":69,"y":317,"width":834,"height":12}},{"id":"f66e130b-a9a5-45bf-a337-427ae301d4e6","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":164,"box":{"x":68,"y":332,"width":826,"height":11}},{"id":"91fe8bb2-4a74-4a44-a83c-ea5c5a9d75e6","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":164,"box":{"x":69,"y":348,"width":816,"height":11}},{"id":"b44eeded-03a3-4c65-ba20-b25686318e25","block_type":"box","text":"fees and higher transfer agency fees applicable to CDSC shares.","page_number":164,"box":{"x":68,"y":363,"width":461,"height":11}},{"id":"fe274f81-8629-495d-8f37-aa507b60f894","block_type":"box","text":"Taxes","page_number":164,"box":{"x":68,"y":393,"width":42,"height":9}},{"id":"46c54644-b036-426e-907e-8ae4921542de","block_type":"box","text":"Each Fund intends to continue to qualify for the special tax treatment afforded to regulated investment","page_number":164,"box":{"x":102,"y":416,"width":732,"height":11}},{"id":"7c668443-8146-4203-9946-934dce9a1923","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":164,"box":{"x":69,"y":431,"width":825,"height":11}},{"id":"00621371-4741-4cdd-8455-c0fb982d7f09","block_type":"box","text":"U.S. federal income tax on the par t of its investment company taxable income and net realized capital gains that it","page_number":164,"box":{"x":70,"y":446,"width":817,"height":11}},{"id":"6712d204-65ee-425f-bbdf-018bb4ce293e","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":164,"box":{"x":69,"y":461,"width":832,"height":11}},{"id":"77244554-11e2-4ed0-b354-b43f278099af","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":164,"box":{"x":69,"y":476,"width":791,"height":11}},{"id":"5eac6eb5-e46c-4120-a60f-8e8c125f0f0e","block_type":"box","text":"company, a Fund must meet cer tain requirements regarding the source of its income and the composition and","page_number":164,"box":{"x":69,"y":491,"width":786,"height":12}},{"id":"9296784e-c313-4293-aa6e-dc26d9285cc2","block_type":"box","text":"diversification of its assets. See Par t II, “Investment Risks and Considerations—Investment Restrictions (All Funds)”","page_number":164,"box":{"x":69,"y":506,"width":831,"height":11}},{"id":"4ed713ec-ab68-4ec8-bf5d-9b09072b4802","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":164,"box":{"x":68,"y":521,"width":819,"height":12}},{"id":"968b4058-868a-4080-aa8b-3e800c6e94fe","block_type":"box","text":"underlying assets of the Master Por tfolio in which it has invested for purposes of satisfying the asset diversification","page_number":164,"box":{"x":69,"y":537,"width":824,"height":11}},{"id":"caf149a5-b8d0-49fc-b4ca-0d7ba73b0ea8","block_type":"box","text":"requirement and various other requirements of the Code applicable to regulated investment companies.","page_number":164,"box":{"x":69,"y":552,"width":739,"height":11}},{"id":"3a40e6dc-37a8-4bb7-b630-772161989867","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":164,"box":{"x":101,"y":574,"width":792,"height":12}},{"id":"1cdd297c-e920-451d-9e87-6623348cd8e9","block_type":"box","text":"failure to diversify its holdings in the manner described above by paying a tax, by disposing of cer tain assets, or by","page_number":164,"box":{"x":68,"y":589,"width":819,"height":12}},{"id":"5f01d146-e455-44c0-9305-832c6edc72d8","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":164,"box":{"x":70,"y":605,"width":830,"height":11}},{"id":"826aa2e7-b357-4289-938f-cbca183d0761","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":164,"box":{"x":68,"y":620,"width":744,"height":11}},{"id":"cc149af1-8f66-49a2-86f2-c65954d0081b","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":164,"box":{"x":69,"y":635,"width":835,"height":11}},{"id":"9c1a7b74-6475-4bd8-b8e4-477c0c7b48ef","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":164,"box":{"x":69,"y":650,"width":808,"height":11}},{"id":"f26d5db2-145f-405c-b45b-19bab1effecb","block_type":"box","text":"company with respect to items attributable to an interest in a qualified publicly-traded par tnership. A Fund’s","page_number":164,"box":{"x":69,"y":665,"width":767,"height":11}},{"id":"e9d16edd-0f58-40d0-94b6-4c0fe1cae367","block_type":"box","text":"investments in par tnerships, including in qualified publicly-traded par tnerships, may result in the Fund being subject","page_number":164,"box":{"x":70,"y":680,"width":826,"height":12}},{"id":"c037c385-cd34-419f-94bf-c443a0a53519","block_type":"box","text":"to state, local, or non-U.S. income, franchise or withholding tax liabilities.","page_number":164,"box":{"x":68,"y":695,"width":521,"height":12}},{"id":"d2037415-f3f3-4d36-a2d9-732135bb981b","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":164,"box":{"x":102,"y":718,"width":798,"height":11}},{"id":"2f5cea11-b23d-4340-b223-5804fe33eb86","block_type":"box","text":"qualify as a regulated investment company under the Code, notwithstanding the availability of cer tain relief","page_number":164,"box":{"x":69,"y":733,"width":762,"height":11}},{"id":"bcbc6392-a44a-4328-b814-b9497f51e38e","block_type":"box","text":"provisions, such Fund would be taxed in the same manner as an ordinary corporation and all distributions from","page_number":164,"box":{"x":70,"y":748,"width":789,"height":11}},{"id":"596f4756-ccc4-47b9-bb29-723a746bd6df","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":164,"box":{"x":69,"y":763,"width":837,"height":12}},{"id":"d97a18a1-8b53-4bf3-9044-80cfc11bf5bd","block_type":"box","text":"ordinary dividend income eligible for taxation at a reduced tax rate for non-corporate shareholders and the dividends","page_number":164,"box":{"x":69,"y":778,"width":831,"height":12}},{"id":"9cfd7c68-4202-4ca7-8ded-e410ade705a7","block_type":"box","text":"received deduction for corporate shareholders. However, a Municipal Fund’s distributions derived from income on tax","page_number":164,"box":{"x":69,"y":794,"width":837,"height":11}},{"id":"efe1b1c5-91e0-4302-ae84-5e2f6d7cf3c4","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":164,"box":{"x":69,"y":809,"width":825,"height":11}},{"id":"be6a2e7c-ab30-4dc5-9f0b-586b5826527d","block_type":"box","text":"series of a regulated investment company that consists of multiple series is treated as a separate corporation for","page_number":164,"box":{"x":69,"y":824,"width":811,"height":11}},{"id":"87bb77cc-f170-491f-8362-be110b7d9e8c","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":164,"box":{"x":70,"y":839,"width":813,"height":11}},{"id":"ecbd363f-ba3e-49c5-9575-e62c16b12c55","block_type":"box","text":"under the rules for regulated investment companies. Losses in one series of a regulated investment company do not","page_number":164,"box":{"x":69,"y":854,"width":834,"height":11}},{"id":"ba489642-9f31-4639-945e-fc9e7eb159c4","block_type":"box","text":"offset gains in another, and the requirements (other than cer tain organizational requirements) for qualifying for","page_number":164,"box":{"x":69,"y":869,"width":790,"height":11}},{"id":"a1e2e44c-101b-4171-97a2-9353712e0747","block_type":"box","text":"regulated investment company status will be determined at the level of the individual series. In the following","page_number":164,"box":{"x":69,"y":884,"width":771,"height":12}},{"id":"13d4f391-1dbc-4063-a4f5-64c49caf383b","block_type":"box","text":"discussion, the term “Fund” means each individual series, if applicable.","page_number":164,"box":{"x":69,"y":899,"width":512,"height":11}},{"id":"2c005d35-145f-480f-b20b-bd4c9ba3c9ee","block_type":"box","text":"II-129","page_number":164,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"94b104c9-a87c-4043-acd0-0ba4953f9e22","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":164,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ba38ec52-9220-4be6-a54d-d7dd18164f4a","block_type":"box","text":"The Code requires a regulated investment company to pay a nondeductible 4% excise tax to the extent the","page_number":165,"box":{"x":101,"y":45,"width":759,"height":11}},{"id":"5dc0f73e-05eb-499f-b25f-cb8867ba1c86","block_type":"box","text":"regulated investment company does not distribute, during each calendar year, at least 98% of its ordinary income,","page_number":165,"box":{"x":69,"y":60,"width":813,"height":11}},{"id":"135dc12d-cf8b-491d-90d8-9eab2ac1a7b5","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":165,"box":{"x":69,"y":75,"width":830,"height":11}},{"id":"6dfae08c-7a3b-4128-8a1e-5b90232b3d5a","block_type":"box","text":"the regulated investment company’s taxable year ended on October 31, plus cer tain undistributed amounts from the","page_number":165,"box":{"x":68,"y":90,"width":832,"height":11}},{"id":"af8a4c87-8a11-46c9-9b5f-0fa55518fa6f","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":165,"box":{"x":70,"y":105,"width":825,"height":11}},{"id":"2c0892ed-a55c-4981-947b-8a368c16cb4b","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":165,"box":{"x":70,"y":120,"width":810,"height":11}},{"id":"e169329b-4f2d-452f-a115-3f99def1a11f","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":165,"box":{"x":69,"y":135,"width":828,"height":12}},{"id":"fb46d3f3-781d-4c9d-b9ad-c14040f5e075","block_type":"box","text":"the tax only on the amount by which it does not meet the foregoing distribution requirements.","page_number":165,"box":{"x":68,"y":150,"width":666,"height":12}},{"id":"3404e8e2-7083-4c5d-9bd0-ed557f23fd5d","block_type":"box","text":"Net capital loss carryforwards may be applied against realized capital gains in each succeeding year, until they","page_number":165,"box":{"x":102,"y":173,"width":790,"height":11}},{"id":"fc57abff-4951-4cdd-8f64-db84c29e6682","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":165,"box":{"x":69,"y":188,"width":830,"height":12}},{"id":"cd30d1d7-3152-4577-8639-3acd52ede32e","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":165,"box":{"x":69,"y":203,"width":770,"height":12}},{"id":"282aa8ed-1a1c-46b5-95ca-d747b26a5763","block_type":"box","text":"limitation.","page_number":165,"box":{"x":70,"y":219,"width":68,"height":8}},{"id":"88dbf5fc-fe14-4569-99d3-b45956e88270","block_type":"box","text":"Dividends paid by a Fund from its ordinary income or from an excess of net shor t-term capital gain over net long","page_number":165,"box":{"x":102,"y":241,"width":803,"height":11}},{"id":"62306aca-a8a5-45b1-9b15-e5f4603414cd","block_type":"box","text":"term capital loss (together referred to as “ordinary income dividends”) are taxable to shareholders as ordinary","page_number":165,"box":{"x":68,"y":256,"width":790,"height":12}},{"id":"28d14fe3-b33c-453e-9700-af5eac35dd11","block_type":"box","text":"income. Distributions made from an excess of net long-term capital gain over net shor t-term capital loss (including","page_number":165,"box":{"x":70,"y":271,"width":815,"height":12}},{"id":"54859c3e-8f8b-4513-8353-2f58a344c681","block_type":"box","text":"gains or losses from cer tain transactions in futures and options) (“capital gain dividends”) are taxable to","page_number":165,"box":{"x":68,"y":286,"width":748,"height":12}},{"id":"703230c1-3578-4044-a425-cd8b9670b8cd","block_type":"box","text":"shareholders as long-term capital gains, regardless of the length of time the shareholder has owned Fund shares.","page_number":165,"box":{"x":69,"y":302,"width":811,"height":11}},{"id":"4e5af3c8-9f12-4b6d-bcb4-c0c4907858bb","block_type":"box","text":"Distributions paid by a Fund that are repor ted as exempt-interest dividends will not be subject to regular U.S. federal","page_number":165,"box":{"x":70,"y":317,"width":829,"height":11}},{"id":"94f5c2e8-4fd3-4ea1-b9b4-1aeebb353048","block_type":"box","text":"income tax. Cer tain dividend income and long-term capital gains are eligible for taxation at a reduced rate that","page_number":165,"box":{"x":70,"y":332,"width":785,"height":11}},{"id":"01417d19-6fa3-4d42-b2d1-5eb65b568d75","block_type":"box","text":"applies to non-corporate shareholders. Under these rules, the por tion of ordinary income dividends constituting","page_number":165,"box":{"x":69,"y":347,"width":795,"height":11}},{"id":"f8466118-f7d4-47ff-af28-8965f73e1129","block_type":"box","text":"“qualified dividend income” when paid by a regulated investment company to a non-corporate shareholder may be","page_number":165,"box":{"x":70,"y":362,"width":809,"height":11}},{"id":"4be56f00-15e6-4631-98b4-e17c3554d2e6","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":165,"box":{"x":68,"y":377,"width":814,"height":12}},{"id":"c3c2f559-4597-49aa-8c93-5dfcb3d5b711","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":165,"box":{"x":68,"y":392,"width":822,"height":12}},{"id":"1b03f09c-294e-451a-a754-32bc91324cd1","block_type":"box","text":"the date on which the shares become ex-dividend with respect to such dividend (or, in the case of cer tain","page_number":165,"box":{"x":68,"y":407,"width":751,"height":11}},{"id":"195b97c2-269e-4b97-9225-1e0223c45b24","block_type":"box","text":"accumulated dividends with respect to preferred stocks, the shareholder has held the shares on which the dividend","page_number":165,"box":{"x":69,"y":423,"width":823,"height":11}},{"id":"201b9f96-a44a-4dc7-bd9f-9c897232353f","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":165,"box":{"x":68,"y":438,"width":817,"height":11}},{"id":"8b95d6b5-c6a4-42e2-9137-8838a5c7825a","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":165,"box":{"x":68,"y":453,"width":813,"height":11}},{"id":"90e920cd-0899-487a-8c1c-e695da20d7a1","block_type":"box","text":"are derived from income on debt securities, cer tain types of preferred stock treated as debt for U.S. federal income","page_number":165,"box":{"x":69,"y":468,"width":825,"height":11}},{"id":"21672e59-3366-4c3e-8a35-e7fadfcd90bf","block_type":"box","text":"tax purposes and shor t-term capital gains, such distributions will not constitute “qualified dividend income.” In","page_number":165,"box":{"x":68,"y":483,"width":789,"height":11}},{"id":"77027cb7-9a36-468c-8c3f-7b0ac7949203","block_type":"box","text":"addition, distributions that are derived from securities lending income, such as substitute dividend payments, will not","page_number":165,"box":{"x":69,"y":498,"width":836,"height":11}},{"id":"959868a8-a7b3-4392-a533-cb5acf06b9ee","block_type":"box","text":"constitute “qualified dividend income.”","page_number":165,"box":{"x":69,"y":513,"width":275,"height":11}},{"id":"22ad19bc-2a85-451d-8fc9-777f9f982903","block_type":"box","text":"A 3.8% Medicare tax is imposed on the net investment income (which includes taxable dividends and redemption","page_number":165,"box":{"x":101,"y":536,"width":806,"height":11}},{"id":"20ff95a1-5fe9-4106-8dc0-470ccc41d9d5","block_type":"box","text":"proceeds) of cer tain individuals, trusts and estates.","page_number":165,"box":{"x":70,"y":551,"width":368,"height":11}},{"id":"030d68cd-1fa8-4e04-be1d-47caa4c8dea5","block_type":"box","text":"A Fund’s net capital gain (the excess of net long-term capital gains over net shor t-term capital losses) is not","page_number":165,"box":{"x":101,"y":574,"width":772,"height":11}},{"id":"1922860c-34b0-4e7b-b3d1-4a21d6ae3643","block_type":"box","text":"subject to the 90% distribution requirement for taxation as a regulated investment company, described above. If a","page_number":165,"box":{"x":69,"y":589,"width":811,"height":11}},{"id":"9b309076-d916-4903-81c7-1286c1fb4415","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":165,"box":{"x":70,"y":604,"width":745,"height":11}},{"id":"0164652e-779f-45a8-a6eb-aa645b9c2712","block_type":"box","text":"undistributed capital gain in a written statement furnished to its shareholders, who will be required to include in","page_number":165,"box":{"x":69,"y":619,"width":795,"height":11}},{"id":"416eec13-ff9e-4ebb-8216-4866d75df5f8","block_type":"box","text":"income, as long-term capital gain, their propor tionate shares of such undistributed net capital gain, will be deemed to","page_number":165,"box":{"x":70,"y":634,"width":838,"height":12}},{"id":"7c1e05f5-d152-4a64-b172-ba9a0cea18cd","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":165,"box":{"x":69,"y":649,"width":809,"height":12}},{"id":"9afde13d-9d3a-49e9-bb78-ed1c35d90725","block_type":"box","text":"exceeds that liability) their propor tionate shares of the tax paid by the Fund on that gain, and shall increase the tax","page_number":165,"box":{"x":69,"y":664,"width":822,"height":12}},{"id":"0582671c-ac98-49de-9de2-2b6d6922be02","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":165,"box":{"x":69,"y":680,"width":838,"height":11}},{"id":"edabb58c-4776-4fe9-8598-695e4deb7644","block_type":"box","text":"against their taxes.","page_number":165,"box":{"x":69,"y":695,"width":135,"height":11}},{"id":"a8fe2663-e8e2-4e59-9295-e2776450e581","block_type":"box","text":"Distributions in excess of a Fund’s current and accumulated earnings and profits will first reduce the adjusted","page_number":165,"box":{"x":102,"y":717,"width":783,"height":12}},{"id":"ae3a8fa1-dd24-4f69-b06f-9a2761eea2ff","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":165,"box":{"x":68,"y":732,"width":812,"height":12}},{"id":"f1ecf1fb-dfe3-4365-9de2-af804c19268c","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":165,"box":{"x":69,"y":748,"width":769,"height":11}},{"id":"5f104740-ed24-41e1-8ca4-d777d1084cf4","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":165,"box":{"x":69,"y":763,"width":805,"height":11}},{"id":"4374e01e-8223-4af2-992c-af477494c465","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":165,"box":{"x":69,"y":778,"width":824,"height":11}},{"id":"778476ca-9d78-4d26-ad8e-1c8fed93d1b5","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":165,"box":{"x":68,"y":793,"width":831,"height":11}},{"id":"4cece140-c238-41dd-a5d4-ab229839a066","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":165,"box":{"x":68,"y":808,"width":817,"height":11}},{"id":"9de313b6-561a-4e79-85dd-782a5973837f","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":165,"box":{"x":70,"y":823,"width":797,"height":12}},{"id":"0e44fb83-2b3d-4529-8d04-0b80025c0685","block_type":"box","text":"dividends received by the shareholder.","page_number":165,"box":{"x":69,"y":839,"width":272,"height":10}},{"id":"7bd68048-1f61-4f02-a7f3-d86de6d05fe0","block_type":"box","text":"Ordinary income and capital gain dividends are taxable to shareholders even if they are reinvested in additional","page_number":165,"box":{"x":102,"y":861,"width":792,"height":11}},{"id":"e43d261c-8aec-4db1-b927-774adb360ca1","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":165,"box":{"x":69,"y":876,"width":835,"height":11}},{"id":"971e6735-b36c-471c-a9c1-a9b0779c40bc","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":165,"box":{"x":68,"y":891,"width":809,"height":11}},{"id":"68f663e4-83f2-45ba-a20f-c0402a55cfdf","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":165,"box":{"x":68,"y":906,"width":819,"height":11}},{"id":"7f8daf1d-fb11-44b7-8d76-d02a841249cf","block_type":"box","text":"II-130","page_number":165,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"00ada8db-01b3-4e5c-8fc5-9000597b6cb1","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":165,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"fe55f3a6-6047-4b02-8d99-7a8ba9e7dac2","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":166,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"1743e31d-d330-4546-82b9-83281f3c09e1","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":166,"box":{"x":69,"y":60,"width":794,"height":11}},{"id":"85f2a8bd-7f05-411b-90b2-448abcc10969","block_type":"box","text":"calendar taxable year, if the Fund repor ts more capital gain dividends than it earns in such taxable year, then the","page_number":166,"box":{"x":69,"y":75,"width":804,"height":11}},{"id":"8ea4e4a7-faa0-4dae-b078-60af59aff874","block_type":"box","text":"Fund will reduce the amounts repor ted as capital gains. Where possible, such reduction will first be allocated to","page_number":166,"box":{"x":70,"y":90,"width":797,"height":11}},{"id":"52cfb440-517a-453f-b6bd-3598dd239d7e","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":166,"box":{"x":69,"y":105,"width":810,"height":11}},{"id":"089c188a-5a96-4974-8984-581963628c3a","block_type":"box","text":"taxable year, cer tain net capital losses arising after October 31 of the current taxable year, and cer tain net ordinary","page_number":166,"box":{"x":68,"y":120,"width":826,"height":12}},{"id":"3d56bf4c-7ac2-46a9-bca5-6f8f859f82af","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":166,"box":{"x":70,"y":135,"width":772,"height":12}},{"id":"de1fa63b-d130-4ede-b646-e1914df238bc","block_type":"box","text":"increasing the amount of dividends otherwise includible in the shareholder’s income with respect to the current","page_number":166,"box":{"x":70,"y":150,"width":795,"height":12}},{"id":"2e0fb5a9-1cc2-4771-962d-b2c2495a21d1","block_type":"box","text":"taxable year.","page_number":166,"box":{"x":68,"y":166,"width":89,"height":11}},{"id":"0b7744ca-007e-4978-9507-e66fc4b83066","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":166,"box":{"x":102,"y":188,"width":733,"height":12}},{"id":"6d261f47-4e64-4267-86fa-64f5a145cd20","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":166,"box":{"x":69,"y":203,"width":832,"height":11}},{"id":"51ded147-f49b-412a-b01d-8417cd55d00f","block_type":"box","text":"basis in the conver ted Investor C Shares and the holding period of the acquired Investor A Shares will include the","page_number":166,"box":{"x":69,"y":218,"width":809,"height":12}},{"id":"f750a14f-a680-4fa1-af22-e2be8ff4d211","block_type":"box","text":"holding period for the conver ted Investor C Shares.","page_number":166,"box":{"x":69,"y":234,"width":362,"height":11}},{"id":"7629345f-fa20-4ece-8fe2-d5726b099273","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":166,"box":{"x":102,"y":256,"width":795,"height":12}},{"id":"86d22bc5-c5aa-421d-97b6-359db7894968","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":166,"box":{"x":69,"y":271,"width":824,"height":12}},{"id":"5c63169e-5b3f-4ef7-b03f-3a1918c10c2d","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":166,"box":{"x":69,"y":287,"width":797,"height":11}},{"id":"2b7e417d-f35b-4f91-ad2d-28059ecb50dc","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":166,"box":{"x":69,"y":302,"width":791,"height":11}},{"id":"bed752ca-a786-4350-b04a-2a55bcfca063","block_type":"box","text":"privilege. Instead, such sales charge will be treated as an amount paid for the new shares.","page_number":166,"box":{"x":70,"y":317,"width":646,"height":11}},{"id":"d3b6b963-87bd-4334-86d5-b5b75926b482","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":166,"box":{"x":101,"y":339,"width":762,"height":12}},{"id":"6ab816e5-ab52-49fe-be0c-eacfdcbf1f00","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":166,"box":{"x":69,"y":355,"width":836,"height":11}},{"id":"f7a491a1-13f7-4f95-bbfc-46d5a3210419","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":166,"box":{"x":69,"y":370,"width":822,"height":11}},{"id":"4848b201-6e4b-423d-b908-a2f2945ebea2","block_type":"box","text":"generally be treated as shor t-term capital gain or loss. Any loss realized upon a taxable disposition of shares held for","page_number":166,"box":{"x":68,"y":385,"width":838,"height":11}},{"id":"c9eb8e72-44b9-4916-99ba-5140cf8ef4c4","block_type":"box","text":"six months or less will be treated as long-term capital loss, rather than shor t-term capital loss, to the extent of any","page_number":166,"box":{"x":69,"y":400,"width":820,"height":11}},{"id":"55c4daee-3d47-4c4e-a421-4e410bc10ed3","block_type":"box","text":"amounts treated as distributions to the shareholder of long-term capital gain (including any amounts credited to the","page_number":166,"box":{"x":69,"y":415,"width":823,"height":11}},{"id":"cfc391cf-14fc-49d2-8a31-3e9f4f4181ca","block_type":"box","text":"shareholder as undistributed capital gains). Shareholders that hold shares of a Fund through a qualified tax-exempt","page_number":166,"box":{"x":69,"y":430,"width":822,"height":11}},{"id":"021965d0-ba25-4b84-be15-712eb2647fef","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":166,"box":{"x":70,"y":445,"width":829,"height":11}},{"id":"993d3651-b5e5-4b47-9c1d-bd98d6e8f3d4","block_type":"box","text":"special tax rules that apply to their investments.","page_number":166,"box":{"x":69,"y":461,"width":343,"height":11}},{"id":"b6b9190d-2a28-4cb7-93bb-2636c855590f","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":166,"box":{"x":101,"y":483,"width":807,"height":11}},{"id":"5d44f4c7-8313-4ba8-aade-2b00ea3f3989","block_type":"box","text":"are acquired (whether through the automatic reinvestment of dividends or otherwise) within a 61-day period beginning","page_number":166,"box":{"x":69,"y":498,"width":839,"height":11}},{"id":"d43faa1c-2261-45fa-b1e0-984a963c477c","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":166,"box":{"x":69,"y":513,"width":799,"height":12}},{"id":"cbcd4ee6-d785-4b30-a9f6-c0afab6ea8c8","block_type":"box","text":"basis of the shares acquired will be adjusted to reflect the disallowed loss.","page_number":166,"box":{"x":69,"y":528,"width":534,"height":12}},{"id":"2c4ba2b6-da42-4475-aa5e-b6ba9a27837e","block_type":"box","text":"A Fund is also generally required by law to repor t to each shareholder and to the IRS cost basis information for","page_number":166,"box":{"x":101,"y":551,"width":792,"height":11}},{"id":"6470703e-322b-460a-81fc-efdf7a90b5b3","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":166,"box":{"x":69,"y":566,"width":800,"height":11}},{"id":"9cb10e5f-6803-4da6-aab3-775dc574bbc5","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":166,"box":{"x":70,"y":581,"width":828,"height":12}},{"id":"8d0c4076-74a8-4467-94d3-1fec2ba05570","block_type":"box","text":"long-term or shor t-term. The adjusted cost basis of shares will be based on the default cost basis repor ting method","page_number":166,"box":{"x":70,"y":596,"width":824,"height":12}},{"id":"5bc52ca4-cadc-4f77-bbb6-b259b139cfca","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":166,"box":{"x":69,"y":612,"width":816,"height":11}},{"id":"b3a2ed6d-adee-4608-9565-364c5e762976","block_type":"box","text":"different IRS-accepted method offered by the Fund. These requirements, however, will not apply for investments","page_number":166,"box":{"x":69,"y":627,"width":797,"height":11}},{"id":"85dec087-82ca-435a-bee8-8247d1484667","block_type":"box","text":"through an IRA or other tax-advantaged account. Shareholders should consult their tax advisors to determine the best","page_number":166,"box":{"x":68,"y":642,"width":840,"height":11}},{"id":"1a80214a-a556-46e4-af5f-38bfb495e3e8","block_type":"box","text":"cost basis method for their tax situation, and to obtain more information about how these cost basis repor ting","page_number":166,"box":{"x":69,"y":657,"width":788,"height":11}},{"id":"6de4482e-adca-48c4-bf4f-85f61c7e9dcd","block_type":"box","text":"requirements apply to them. For shares of a Fund acquired before January 1, 2012, these requirements will not","page_number":166,"box":{"x":69,"y":672,"width":797,"height":11}},{"id":"de65ff12-055e-45e1-88f8-ce5ddd01534a","block_type":"box","text":"apply, but the Fund will continue to repor t to the IRS the gross proceeds received by a shareholder from the sale or","page_number":166,"box":{"x":69,"y":687,"width":821,"height":11}},{"id":"9a15d1cb-c92f-4efc-8e99-721952baf7b7","block_type":"box","text":"redemption of such shares.","page_number":166,"box":{"x":69,"y":702,"width":195,"height":11}},{"id":"4b50e832-2e55-44b0-b6ef-4ac19a621e5f","block_type":"box","text":"The Manager may determine it is in the best interest of a Fund to distribute por tfolio securities in kind for the","page_number":166,"box":{"x":101,"y":725,"width":780,"height":11}},{"id":"33912f40-cb51-4f40-ae8f-bac214ee2d13","block_type":"box","text":"purposes of por tfolio management when meeting redemption requests. When the Manager determines to do so, a","page_number":166,"box":{"x":70,"y":740,"width":814,"height":11}},{"id":"37d8cb2d-947a-429b-8caa-d25215b62ce0","block_type":"box","text":"Fund generally will not recognize taxable gains in respect of the por tfolio securities it distributes to the redeeming","page_number":166,"box":{"x":70,"y":755,"width":810,"height":11}},{"id":"5e09a9d2-8418-431b-9494-57e90dfdc782","block_type":"box","text":"shareholder, which may reduce the amount of taxable gains the Fund would otherwise be required to distribute.","page_number":166,"box":{"x":69,"y":770,"width":793,"height":12}},{"id":"36976865-361d-412a-9435-b9624cd35e70","block_type":"box","text":"While a Fund may engage in redemptions in kind that have the effect of reducing or eliminating distributable","page_number":166,"box":{"x":101,"y":793,"width":770,"height":11}},{"id":"8337a184-3adb-4472-ae9b-139c3fc4341c","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":166,"box":{"x":69,"y":808,"width":817,"height":11}},{"id":"64d386e4-6293-40b8-a775-d92fd9e7d8d1","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":166,"box":{"x":69,"y":823,"width":833,"height":12}},{"id":"f00f3469-1fed-4779-9c2f-b99874114e93","block_type":"box","text":"that each Fund will distribute capital gains.","page_number":166,"box":{"x":68,"y":839,"width":305,"height":11}},{"id":"983eef63-ecdf-41ae-bd79-059c1c51d36a","block_type":"box","text":"Cer tain Funds may invest in derivative contracts such as options, futures contracts, forward contracts and swap","page_number":166,"box":{"x":102,"y":861,"width":799,"height":11}},{"id":"c366759a-a535-4d51-89c6-14e3c423004f","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":166,"box":{"x":69,"y":876,"width":791,"height":11}},{"id":"32094555-faef-444b-b995-c0f6152223ea","block_type":"box","text":"investment in the underlying security and may adversely affect the timing, character and amount of income the Fund","page_number":166,"box":{"x":70,"y":891,"width":826,"height":12}},{"id":"d9a4959c-992b-498e-8f30-776b7607ebcf","block_type":"box","text":"realizes from its investments. As a result, a larger por tion of the Fund’s distributions may be treated as ordinary","page_number":166,"box":{"x":69,"y":906,"width":803,"height":12}},{"id":"65a0d8d7-1307-4ba7-8aa5-8c9066ea3cc1","block_type":"box","text":"II-131","page_number":166,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"ab7c71d3-c062-48dd-a47e-a120dd65a8ce","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":166,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"9301ad29-b2b1-4cc0-89ad-0921eaae415c","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":167,"box":{"x":70,"y":45,"width":825,"height":11}},{"id":"7a9584c7-9126-429d-9636-8a58ac1f25bc","block_type":"box","text":"(and, for purposes of the 4% excise tax, cer tain other dates as prescribed under the Code) are generally “marked-to","page_number":167,"box":{"x":69,"y":60,"width":829,"height":11}},{"id":"f1ae9dac-248d-451c-9b31-30e37f3e256d","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":167,"box":{"x":69,"y":75,"width":826,"height":11}},{"id":"ca9a201c-bc39-4d40-8b89-12038ac13c42","block_type":"box","text":"considered 60% long-term and 40% shor t-term capital gain or loss), which may increase the amount that must be","page_number":167,"box":{"x":69,"y":90,"width":808,"height":11}},{"id":"ef186298-d330-451e-ab8b-e56c5ec7855f","block_type":"box","text":"distributed to meet distribution requirements and avoid the excise tax. In addition, the tax treatment of cer tain","page_number":167,"box":{"x":69,"y":105,"width":787,"height":11}},{"id":"ae5824fa-0a21-49c6-9013-ed33159bbd05","block_type":"box","text":"derivative contracts, such as swap agreements, is unsettled and may be subject to future legislation, regulation or","page_number":167,"box":{"x":69,"y":120,"width":816,"height":12}},{"id":"5980319a-46f6-45e1-9e09-e0e2064d560e","block_type":"box","text":"administrative pronouncements issued by the IRS. If such future guidance limits the Fund’s ability to use derivatives,","page_number":167,"box":{"x":69,"y":135,"width":832,"height":12}},{"id":"58ad282a-12a7-41ac-b608-237ecdf8af8c","block_type":"box","text":"the Fund may have to find other ways of achieving its investment objectives.","page_number":167,"box":{"x":68,"y":150,"width":542,"height":12}},{"id":"5844aa02-cb04-4766-8c2d-dd0dc5338717","block_type":"box","text":"Cer tain swap agreements, including exchange-traded swap agreements, are treated as notional principal","page_number":167,"box":{"x":102,"y":173,"width":744,"height":11}},{"id":"753f7e2c-1b93-4c8e-a982-0a25c32c928b","block_type":"box","text":"contracts rather than as section 1256 contracts. This can affect the type of income earned by such swap","page_number":167,"box":{"x":69,"y":188,"width":751,"height":11}},{"id":"03b6d8bc-2ebd-428a-8181-0158bbdb42c7","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":167,"box":{"x":69,"y":203,"width":819,"height":12}},{"id":"9d760d16-2381-41c9-a68f-bd99dd0b319f","block_type":"box","text":"on a section 1256 contract is treated as shor t-term capital gain taxed at ordinary rates and 60% is treated as long","page_number":167,"box":{"x":69,"y":219,"width":823,"height":11}},{"id":"48135759-c170-4b24-8ee7-d94dc4f9a200","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":167,"box":{"x":68,"y":234,"width":823,"height":11}},{"id":"6232407a-877d-4130-8dd1-1dd60e19c9b8","block_type":"box","text":"which may be taxable at more favorable rates than ordinary income. Proposed regulations interpret what types of","page_number":167,"box":{"x":68,"y":249,"width":807,"height":11}},{"id":"2a6427ff-ee11-4b48-9fcf-657509f29b43","block_type":"box","text":"swap agreements are to be treated as notional principal contracts rather than as section 1256 contracts. When","page_number":167,"box":{"x":69,"y":264,"width":797,"height":11}},{"id":"ddea92b0-55bf-4522-9154-ebd4932132ca","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":167,"box":{"x":68,"y":279,"width":838,"height":11}},{"id":"551f3ae7-a505-4da9-9092-4145650cf7ec","block_type":"box","text":"of the distributions made to shareholders as ordinary income and less as long-term capital gains.","page_number":167,"box":{"x":69,"y":294,"width":695,"height":11}},{"id":"2441f9f3-eb62-4499-99e9-020066d89b87","block_type":"box","text":"Cer tain Funds may invest in zero coupon U.S. Treasury bonds and other debt securities that are issued at a","page_number":167,"box":{"x":102,"y":317,"width":768,"height":11}},{"id":"d830a4cd-84df-4c7f-b4ed-fd9a82c05748","block_type":"box","text":"discount or provide for deferred interest. Even though a Fund receives no actual interest payments on these","page_number":167,"box":{"x":69,"y":332,"width":769,"height":11}},{"id":"0778e24d-bffe-4eed-84e8-209ed1cd9058","block_type":"box","text":"securities, it will be deemed to receive income equal, generally, to a por tion of the excess of the stated redemption","page_number":167,"box":{"x":69,"y":347,"width":822,"height":11}},{"id":"84709937-e3ab-4585-b387-b07a183a5e31","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":167,"box":{"x":70,"y":362,"width":819,"height":11}},{"id":"9deca865-ee5e-4af6-8566-0281546bb9f7","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":167,"box":{"x":68,"y":377,"width":818,"height":12}},{"id":"5bd6e512-26b3-4968-838b-1c8e9d8c2e3d","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":167,"box":{"x":70,"y":392,"width":830,"height":12}},{"id":"c94f6a95-32b0-493d-9b83-3a6fed9986ad","block_type":"box","text":"in order to satisfy its distribution requirements. In addition, a Fund’s investment in foreign currencies or foreign","page_number":167,"box":{"x":70,"y":407,"width":792,"height":12}},{"id":"130cf6bf-e409-49f9-91cd-4fee40797e80","block_type":"box","text":"currency denominated or referenced debt securities, cer tain asset-backed securities and contingent payment and","page_number":167,"box":{"x":69,"y":423,"width":808,"height":11}},{"id":"486957cb-f158-483e-9296-fa700fab3d85","block_type":"box","text":"inflation-indexed debt instruments also may increase or accelerate the Fund’s recognition of income, including the","page_number":167,"box":{"x":70,"y":438,"width":812,"height":11}},{"id":"c94be397-cb1c-4600-aa02-e8f4ea087555","block_type":"box","text":"recognition of taxable income in excess of cash generated by such investments. Any transaction by the Fund in","page_number":167,"box":{"x":69,"y":453,"width":789,"height":11}},{"id":"7f14a91d-bd1d-43ec-b48f-18411dd27bc9","block_type":"box","text":"foreign currencies, foreign currency-denominated debt obligations or cer tain foreign currency options, futures","page_number":167,"box":{"x":68,"y":468,"width":777,"height":11}},{"id":"b5c82bd4-2722-4146-80e9-00929f48f24a","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":167,"box":{"x":69,"y":483,"width":810,"height":11}},{"id":"6f7dfef6-cf38-4bdd-a6f2-e36c2a9b7e41","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":167,"box":{"x":70,"y":498,"width":801,"height":11}},{"id":"90f649a2-d505-4e7e-b901-688958378305","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":167,"box":{"x":69,"y":513,"width":762,"height":12}},{"id":"b65d4809-fd7b-405b-8b1c-5418e1f754e6","block_type":"box","text":"potentially require the recharacterization of prior ordinary income distributions. Such ordinary income treatment may","page_number":167,"box":{"x":70,"y":528,"width":827,"height":12}},{"id":"3e640fdd-67fb-4c32-b428-4f6d5f7470ff","block_type":"box","text":"accelerate Fund distributions to shareholders and increase the distributions taxed to shareholders as ordinary","page_number":167,"box":{"x":69,"y":544,"width":787,"height":11}},{"id":"97b0f89b-d233-4902-9c53-982447aad8d4","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":167,"box":{"x":70,"y":559,"width":822,"height":11}},{"id":"412c3616-2ee0-4ce9-b9e2-1f527d43ed56","block_type":"box","text":"in subsequent taxable years.","page_number":167,"box":{"x":70,"y":574,"width":203,"height":11}},{"id":"5fdb0f16-ce5d-4637-b291-108098f8565f","block_type":"box","text":"Ordinary income dividends paid to shareholders who are nonresident aliens or foreign entities (other than pass","page_number":167,"box":{"x":102,"y":596,"width":795,"height":12}},{"id":"f16a2887-dc92-49d7-b7d2-1c603cdfd2cd","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":167,"box":{"x":68,"y":612,"width":816,"height":11}},{"id":"d0ab6617-4a78-49f1-8935-ed7d6be0177d","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":167,"box":{"x":69,"y":627,"width":835,"height":11}},{"id":"2db0bbc3-b50a-4837-b4be-6379c8b9aebf","block_type":"box","text":"withholding exemption is provided under applicable treaty law. Capital gain dividends paid to shareholders that are","page_number":167,"box":{"x":68,"y":642,"width":815,"height":11}},{"id":"0275ae21-f9e1-4660-9bfe-5f35d8ca4d1a","block_type":"box","text":"nonresident aliens or foreign entities, if and to the extent properly repor ted as capital gain dividends, generally will","page_number":167,"box":{"x":69,"y":657,"width":816,"height":11}},{"id":"edf49e5a-200c-4da3-830d-612638f88f85","block_type":"box","text":"not be subject to a 30% withholding tax, unless cer tain exceptions apply. Dividends derived by a regulated investment","page_number":167,"box":{"x":69,"y":672,"width":840,"height":11}},{"id":"5683784b-e3ba-4d96-a589-fa36d6570e56","block_type":"box","text":"company from shor t-term capital gains and qualified net interest income (including income from original issue","page_number":167,"box":{"x":69,"y":687,"width":781,"height":11}},{"id":"4f06cba4-645a-4959-9584-3d6bff88cb83","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":167,"box":{"x":69,"y":702,"width":824,"height":12}},{"id":"381a7628-dff4-456a-9ece-cd32bd523b9f","block_type":"box","text":"extent properly repor ted as “shor t-term capital gain dividends” or “interest-related dividends”, respectively, generally","page_number":167,"box":{"x":69,"y":718,"width":832,"height":11}},{"id":"b7288794-c92c-4346-956f-dec42140986b","block_type":"box","text":"will not be subject to U.S. withholding tax. Where possible, the Funds intend to repor t such dividends as interest","page_number":167,"box":{"x":68,"y":733,"width":808,"height":11}},{"id":"6003e5cd-e233-4837-be1b-4e2812015dcd","block_type":"box","text":"related dividends or shor t-term capital gain dividends. However, depending on its circumstances, a Fund may repor t","page_number":167,"box":{"x":69,"y":748,"width":826,"height":11}},{"id":"ce891c68-1032-4ddf-80d6-f1a8b4528732","block_type":"box","text":"all, some or none of its potentially eligible dividends as interest-related or as shor t-term capital gain dividends, and/","page_number":167,"box":{"x":69,"y":763,"width":830,"height":11}},{"id":"623bf86c-bd00-47b2-b422-b968b4adbf30","block_type":"box","text":"or treat such dividends, in whole or in par t, as ineligible for this exemption from withholding. In order to qualify for","page_number":167,"box":{"x":69,"y":778,"width":811,"height":11}},{"id":"81f51335-3093-46cd-a87b-3573f4bc6794","block_type":"box","text":"this exemption from withholding, a foreign shareholder must comply with applicable cer tification requirements","page_number":167,"box":{"x":68,"y":793,"width":784,"height":11}},{"id":"8e833e0a-36c9-44e2-89b7-ae39bf84f03e","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":167,"box":{"x":69,"y":808,"width":828,"height":11}},{"id":"ef6fc88e-f6ff-4c56-a726-e32b78200844","block_type":"box","text":"Form). In the case of shares held through an intermediary, the intermediary may withhold even if the Fund repor ts the","page_number":167,"box":{"x":70,"y":823,"width":839,"height":12}},{"id":"8ff60f78-4ed5-42a5-86b8-398732f7bcdf","block_type":"box","text":"payment as an interest-related or shor t-term capital gain dividend. Foreign shareholders should contact their","page_number":167,"box":{"x":70,"y":839,"width":772,"height":11}},{"id":"689ca1e2-d117-4877-9ba0-ced8a76c3073","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":167,"box":{"x":70,"y":853,"width":791,"height":11}},{"id":"f9305826-8a40-4fbf-aa44-0e63977e4d45","block_type":"box","text":"por tion, if any, of a Fund’s distributions will be repor ted as interest-related dividends or shor t-term capital gain","page_number":167,"box":{"x":70,"y":869,"width":787,"height":11}},{"id":"83477cce-31d2-4c78-bae6-7b37d431ad95","block_type":"box","text":"dividends under these rules.","page_number":167,"box":{"x":69,"y":884,"width":201,"height":9}},{"id":"340422cc-a6e0-4110-a79f-04b208a1371c","block_type":"box","text":"II-132","page_number":167,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"7031a05b-6cea-4b77-8a91-2dc197bae69f","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":167,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2815c15a-3f5e-41d9-8877-4e6657de504b","block_type":"box","text":"Distributions to cer tain foreign shareholders by a Fund at least 50% of the assets of which are “U.S. real","page_number":168,"box":{"x":102,"y":45,"width":747,"height":11}},{"id":"5ff10747-cd12-47a7-ad51-7348fa0cfb29","block_type":"box","text":"proper ty interests” (as defined in the Code and Treasury regulations) at any time during the five-year period ending on","page_number":168,"box":{"x":70,"y":60,"width":838,"height":11}},{"id":"ec09eba5-f685-4593-abf2-6bb32cbd3997","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":168,"box":{"x":68,"y":75,"width":829,"height":11}},{"id":"caee1b1f-65c6-4519-9e6a-9b4338883f74","block_type":"box","text":"real proper ty interests (including shares in cer tain “U.S. real proper ty holding corporations” such as cer tain REITs,","page_number":168,"box":{"x":69,"y":90,"width":817,"height":11}},{"id":"66d72c52-551c-414a-b366-b02266d104ee","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":168,"box":{"x":69,"y":105,"width":786,"height":11}},{"id":"7e7dc823-e5f5-4b50-81bd-b015f9efc4da","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":168,"box":{"x":69,"y":120,"width":800,"height":12}},{"id":"7a582f51-219d-425b-b5e9-312613f20d7f","block_type":"box","text":"period ending on the date of the distributions), generally must be treated by such foreign shareholders as income","page_number":168,"box":{"x":70,"y":135,"width":807,"height":12}},{"id":"fed52abf-b275-49e0-806f-c24abd063304","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":168,"box":{"x":69,"y":150,"width":772,"height":12}},{"id":"f7077f90-7d23-425e-b8e6-af24313bf92d","block_type":"box","text":"graduated rates applicable to U.S. shareholders, except for distributions to foreign shareholders that held no more","page_number":168,"box":{"x":68,"y":166,"width":818,"height":11}},{"id":"5b40e1ce-d1c4-4298-9a23-9bfb20dc598d","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":168,"box":{"x":68,"y":181,"width":820,"height":11}},{"id":"b20594c8-7838-448b-867e-028083fc47f6","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":168,"box":{"x":69,"y":196,"width":833,"height":11}},{"id":"439a16c5-e8bf-41b3-8dc4-4249a2b6a454","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":168,"box":{"x":69,"y":211,"width":823,"height":11}},{"id":"44c94328-672a-4bc7-a4d8-d705c3ac3df7","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":168,"box":{"x":69,"y":226,"width":774,"height":11}},{"id":"24943b56-ef12-4c0c-a17b-ba0ceaad8292","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":168,"box":{"x":69,"y":241,"width":839,"height":11}},{"id":"ca7a1b92-35b8-4491-b30c-57735b87a971","block_type":"box","text":"sales or redemptions of shares held by cer tain foreign shareholders in such a Fund generally will be subject to U.S.","page_number":168,"box":{"x":69,"y":256,"width":822,"height":12}},{"id":"5ed9d524-5e51-4a27-bef4-4ed9fa4a6ffa","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":168,"box":{"x":70,"y":271,"width":827,"height":12}},{"id":"7e7ad644-98b6-4a86-8a04-cb0e3f8fe554","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":168,"box":{"x":69,"y":286,"width":823,"height":12}},{"id":"0cd5faeb-efa8-4767-9ce4-0a064a3fa5ca","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":168,"box":{"x":68,"y":302,"width":827,"height":11}},{"id":"71a80924-69d0-4b89-b579-cb0f13af3987","block_type":"box","text":"at all times during the five-year period ending on the date of the sale or redemption.","page_number":168,"box":{"x":69,"y":317,"width":596,"height":11}},{"id":"09c185d1-e170-42b1-b00f-f802df74d09e","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":168,"box":{"x":102,"y":339,"width":802,"height":12}},{"id":"19610d22-396c-4911-ac6f-8b9bc24e96af","block_type":"box","text":"distributions made in the form of U.S. real proper ty interests (including shares in cer tain “U.S. real proper ty holding","page_number":168,"box":{"x":69,"y":355,"width":827,"height":11}},{"id":"ac6e6627-4917-4824-bade-62d3b71700a7","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":168,"box":{"x":69,"y":370,"width":804,"height":11}},{"id":"e6daef05-9758-4cbb-8bcd-b70e1f3d742f","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":168,"box":{"x":69,"y":385,"width":824,"height":11}},{"id":"6d0e89a9-a7a3-45c6-b16e-c1cc8a6e4135","block_type":"box","text":"five-year period ending on the date of the distribution) generally will cause the Fund to recognize a por tion of any","page_number":168,"box":{"x":68,"y":400,"width":801,"height":11}},{"id":"1fae6e6a-0323-4208-8670-2778c6815c66","block_type":"box","text":"unrecognized gain in the U.S. real proper ty interests equal to the product of (i) the excess of fair market value of","page_number":168,"box":{"x":69,"y":415,"width":803,"height":11}},{"id":"649f7206-5826-4e7a-ad56-1f066a4b8e17","block_type":"box","text":"such U.S. real proper ty interests over the Fund’s adjusted bases in such interests and (ii) the greatest foreign","page_number":168,"box":{"x":69,"y":430,"width":785,"height":11}},{"id":"52833c21-bd8d-462a-809c-e17e204ab0e3","block_type":"box","text":"ownership percentage of the Fund during the five-year period ending on the date of distribution.","page_number":168,"box":{"x":69,"y":445,"width":676,"height":12}},{"id":"c95f5a6f-36cc-4c2d-972b-8c9960a435dc","block_type":"box","text":"A foreign shareholder may also be subject to cer tain “wash sale” rules to prevent the avoidance of the tax filing","page_number":168,"box":{"x":101,"y":468,"width":798,"height":11}},{"id":"8819ccbe-ab09-4568-b1b4-84fa28c886fa","block_type":"box","text":"and payment obligations discussed above through the sale and repurchase of Fund shares.","page_number":168,"box":{"x":69,"y":483,"width":651,"height":11}},{"id":"e4e223aa-a84d-499e-b76c-2515f20942d8","block_type":"box","text":"Shareholders that are nonresident aliens or foreign entities are urged to consult their own tax advisors","page_number":168,"box":{"x":102,"y":506,"width":731,"height":11}},{"id":"fc14e58b-f034-4d7d-8b4f-9894af6b542f","block_type":"box","text":"concerning the par ticular tax consequences to them of an investment in a Fund.","page_number":168,"box":{"x":69,"y":521,"width":570,"height":11}},{"id":"62566044-18d6-43fe-ba06-1129db2b4a3f","block_type":"box","text":"Separately, a 30% withholding tax is currently imposed on U.S.-source dividends, interest and other income","page_number":168,"box":{"x":102,"y":544,"width":763,"height":11}},{"id":"20fcb4a1-3973-433e-a53f-a4953daee5fc","block_type":"box","text":"items paid to (i) cer tain foreign financial institutions and investment funds, and (ii) cer tain other foreign entities. To","page_number":168,"box":{"x":70,"y":559,"width":820,"height":11}},{"id":"0443bf03-88a8-4558-830c-dae33064e8be","block_type":"box","text":"avoid withholding, foreign financial institutions and investment funds will generally either need to (a) collect and","page_number":168,"box":{"x":69,"y":574,"width":794,"height":11}},{"id":"c7d2803c-e08b-4802-b31f-c17d49d9e7bc","block_type":"box","text":"repor t to the IRS detailed information identifying their U.S. accounts and U.S. account holders, comply with due","page_number":168,"box":{"x":69,"y":589,"width":794,"height":11}},{"id":"dbfe8fb8-36e1-4556-8a9f-d34c82a62721","block_type":"box","text":"diligence procedures for identifying U.S. accounts and withhold tax on cer tain payments made to noncomplying","page_number":168,"box":{"x":69,"y":604,"width":791,"height":11}},{"id":"f365e477-ee95-4294-b676-54491da4e383","block_type":"box","text":"foreign entities and account holders or (b) if an intergovernmental agreement is entered into and implementing","page_number":168,"box":{"x":68,"y":619,"width":791,"height":11}},{"id":"94e7f032-f209-46f7-ba40-7367e920aec2","block_type":"box","text":"legislation is adopted, comply with the agreement and legislation. Other foreign entities will generally either need to","page_number":168,"box":{"x":70,"y":634,"width":822,"height":12}},{"id":"76280756-8622-48df-ad96-e05161126d8b","block_type":"box","text":"provide detailed information identifying each substantial U.S. owner or cer tify there are no such owners.","page_number":168,"box":{"x":70,"y":649,"width":739,"height":12}},{"id":"b1645bad-7b5f-4d64-9f8f-2393900553e2","block_type":"box","text":"Under cer tain provisions of the Code, some shareholders may be subject to a 24% withholding tax on ordinary","page_number":168,"box":{"x":102,"y":672,"width":786,"height":11}},{"id":"f0d4db85-b279-4f32-9d9a-33e9a2dad425","block_type":"box","text":"income dividends, capital gain dividends and redemption payments (“backup withholding”). Generally, shareholders","page_number":168,"box":{"x":70,"y":687,"width":820,"height":11}},{"id":"876658e7-d401-4882-81ab-bb99710f881a","block_type":"box","text":"subject to backup withholding will be non-corporate shareholders for whom no cer tified taxpayer identification number","page_number":168,"box":{"x":69,"y":702,"width":837,"height":12}},{"id":"5485664f-eab0-4fb5-bc64-e321888b18dc","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":168,"box":{"x":70,"y":717,"width":821,"height":12}},{"id":"36ef060f-b311-4926-98eb-fbc096a4ca1b","block_type":"box","text":"account, an investor must cer tify under penalty of perjury that such number is correct and that such investor is not","page_number":168,"box":{"x":69,"y":732,"width":819,"height":12}},{"id":"17e8e906-1b38-4714-ac79-3a33d6a56dd7","block_type":"box","text":"otherwise subject to backup withholding. Backup withholding is not an additional tax. Any amount withheld generally","page_number":168,"box":{"x":69,"y":748,"width":826,"height":11}},{"id":"e129279f-c8d7-4e0f-80e5-4750eb2db680","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":168,"box":{"x":69,"y":763,"width":802,"height":11}},{"id":"43a46819-4e4e-4bfc-b6ea-d77d56b9dd36","block_type":"box","text":"required information is timely forwarded to the IRS.","page_number":168,"box":{"x":69,"y":778,"width":364,"height":11}},{"id":"cd845280-ac3e-41d4-a4cb-2761dbc35a7d","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":168,"box":{"x":102,"y":800,"width":774,"height":12}},{"id":"11638dca-57da-43ce-a830-2ddd4d7cfb8d","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":168,"box":{"x":68,"y":815,"width":787,"height":12}},{"id":"09c51fe1-33ad-421f-adf8-07decb21992c","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":168,"box":{"x":68,"y":830,"width":835,"height":12}},{"id":"dbf348de-ea26-466b-9827-2443cf781347","block_type":"box","text":"the shareholder must file a disclosure statement on IRS Form 8886 with the IRS. Direct shareholders of por tfolio","page_number":168,"box":{"x":68,"y":846,"width":809,"height":11}},{"id":"cd0f1316-92a9-40f0-a50f-13e5272d15fa","block_type":"box","text":"securities are in many cases exempted. That a loss is repor table under these regulations does not affect the legal","page_number":168,"box":{"x":69,"y":861,"width":817,"height":11}},{"id":"e073c41e-bdf9-4983-9f50-4a044ee205a8","block_type":"box","text":"determination of whether the taxpayer’s treatment of the loss is proper. Shareholders should consult their tax","page_number":168,"box":{"x":69,"y":876,"width":783,"height":11}},{"id":"3dd77505-6bc1-4032-ab77-e829bfaa1b48","block_type":"box","text":"advisors to determine the applicability of these regulations in light of their individual circumstances.","page_number":168,"box":{"x":69,"y":891,"width":710,"height":12}},{"id":"dd43ae3b-7b43-4732-a8dd-ce949afc14c4","block_type":"box","text":"II-133","page_number":168,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"9918a6d2-8136-473d-9403-148d6bdc9656","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":168,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"86974703-ccbe-4bc0-afd7-97ede6d5350a","block_type":"box","text":"Cer tain types of income received by a Fund from REITs, real estate mor tgage investment conduits, taxable","page_number":169,"box":{"x":102,"y":45,"width":758,"height":11}},{"id":"c7e06bc3-720f-4ccf-aa8a-8269755b964c","block_type":"box","text":"mor tgage pools or other investments may cause the Fund to repor t some or all of its distributions as “excess","page_number":169,"box":{"x":69,"y":60,"width":782,"height":11}},{"id":"34d84aa0-807c-40cc-bfb3-f39e9a79ad40","block_type":"box","text":"inclusion income.” To Fund shareholders, such excess inclusion income may: (i) constitute taxable income, as","page_number":169,"box":{"x":70,"y":75,"width":783,"height":11}},{"id":"d2e684c7-4639-454c-bf71-0cd13b31c769","block_type":"box","text":"unrelated business taxable income (“UBTI”) for those shareholders who would otherwise be tax-exempt such as","page_number":169,"box":{"x":69,"y":90,"width":797,"height":11}},{"id":"feb29617-f278-4bed-800a-42512881f2c8","block_type":"box","text":"individual retirement accounts, 401(k) accounts, Keogh plans, pension plans and cer tain charitable entities; (ii) not","page_number":169,"box":{"x":70,"y":105,"width":822,"height":11}},{"id":"a9ab50c3-da0c-425e-a2ad-445b397b1803","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":169,"box":{"x":69,"y":120,"width":836,"height":12}},{"id":"d08c5adc-8322-4d4a-b4c8-a241ce1bf01c","block_type":"box","text":"U.S. shareholders even from tax treaty countries; and (iv) cause the Fund to be subject to tax if cer tain “disqualified","page_number":169,"box":{"x":70,"y":135,"width":826,"height":11}},{"id":"6847fe54-ef69-416e-9a65-205afc9ccb15","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":169,"box":{"x":69,"y":150,"width":808,"height":12}},{"id":"fa45a565-3e18-42fb-9749-fe9f01ff5a61","block_type":"box","text":"expected to generate excess inclusion income, but the Fund may not always be successful in doing so. Because","page_number":169,"box":{"x":69,"y":166,"width":800,"height":11}},{"id":"33d58a46-0b6d-4cf0-918d-ac10bf07ad5a","block_type":"box","text":"information about a REIT’s investments may be inadequate or inaccurate, or because a REIT may change its","page_number":169,"box":{"x":70,"y":181,"width":770,"height":11}},{"id":"494c16fa-5078-49e3-ab24-ceb7d223d658","block_type":"box","text":"investment program, the Fund may not be successful in avoiding the consequences described above. Avoidance of","page_number":169,"box":{"x":70,"y":196,"width":816,"height":11}},{"id":"dbbaa8ee-dc8a-420a-84ee-cbfda8191ec1","block_type":"box","text":"investments in REITs that generate excess inclusion income may require the Fund to forego otherwise attractive","page_number":169,"box":{"x":70,"y":211,"width":796,"height":11}},{"id":"9109d379-4dbd-48f0-ba2e-0e0e456264b3","block_type":"box","text":"investment oppor tunities.","page_number":169,"box":{"x":70,"y":226,"width":180,"height":11}},{"id":"993aafce-0cdb-41fb-8535-57cf7663fdb7","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":169,"box":{"x":102,"y":249,"width":801,"height":11}},{"id":"86af0c3e-fea1-4dfa-8beb-df2a29d20861","block_type":"box","text":"imposed by foreign countries. Tax conventions between cer tain foreign countries and the United States may reduce or","page_number":169,"box":{"x":70,"y":264,"width":839,"height":11}},{"id":"04f489ef-4922-42ca-8bd5-8f1b27a590f5","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":169,"box":{"x":69,"y":279,"width":840,"height":11}},{"id":"08c842a8-26f7-4731-8cee-d09a5feab849","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":169,"box":{"x":68,"y":294,"width":837,"height":11}},{"id":"34de1356-c9e5-4e69-aab9-aa143bab5711","block_type":"box","text":"Fund, subject to cer tain requirements and limitations contained in the Code. For example, cer tain retirement","page_number":169,"box":{"x":70,"y":309,"width":774,"height":11}},{"id":"b90ddb88-45be-4bf2-8d42-8b962bae5bf7","block_type":"box","text":"accounts and cer tain tax-exempt organizations cannot claim foreign tax credits on investments in foreign securities","page_number":169,"box":{"x":69,"y":324,"width":820,"height":12}},{"id":"5005f69a-d3e0-4b86-a12f-25a398960544","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":169,"box":{"x":69,"y":339,"width":795,"height":12}},{"id":"70ab38af-3ca4-48a2-9cb1-f2c8757f8c0b","block_type":"box","text":"respect to a security only if the holder of the security meets cer tain holding period requirements. Both the","page_number":169,"box":{"x":69,"y":355,"width":755,"height":11}},{"id":"a1059981-e9b7-4bc7-877d-c3b8fa2c7457","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":169,"box":{"x":69,"y":370,"width":811,"height":11}},{"id":"b55bc576-0ce4-4493-9b18-afd7446dc1ca","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":169,"box":{"x":69,"y":385,"width":839,"height":11}},{"id":"2ee65860-f7ee-4b3b-bab7-c9476f53cded","block_type":"box","text":"the Fund. Fur ther, to the extent that a Fund engages in securities lending with respect to a security paying income","page_number":169,"box":{"x":68,"y":400,"width":812,"height":11}},{"id":"63d29149-57db-4556-a15f-c867ec74101d","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":169,"box":{"x":69,"y":415,"width":829,"height":11}},{"id":"db132272-f1e0-4bbb-b315-c5218482ddc9","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":169,"box":{"x":68,"y":430,"width":827,"height":11}},{"id":"9fd54323-ce3d-44bd-9d83-f08211e23041","block_type":"box","text":"IRS pursuant to which shareholders of the Fund will be required to include their propor tionate shares of such foreign","page_number":169,"box":{"x":70,"y":445,"width":829,"height":12}},{"id":"646612f3-942e-4e44-98ee-1c0baecd8bcb","block_type":"box","text":"taxes in their U.S. income tax returns as gross income, treat such propor tionate shares as taxes paid by them, and","page_number":169,"box":{"x":68,"y":460,"width":825,"height":12}},{"id":"af22d3a7-acdb-4665-ba16-aa9140ba4c62","block_type":"box","text":"deduct such propor tionate shares in computing their taxable incomes or, alternatively, use them as foreign tax","page_number":169,"box":{"x":69,"y":475,"width":788,"height":12}},{"id":"ceeedf2d-6784-4f66-b208-b058128145cf","block_type":"box","text":"credits against their U.S. income taxes. No deductions for foreign taxes, however, may be claimed by noncorporate","page_number":169,"box":{"x":69,"y":491,"width":818,"height":11}},{"id":"63ea395f-8eab-4e7a-84a8-b9bb0f83a415","block_type":"box","text":"shareholders who do not itemize deductions. A shareholder that is a nonresident alien individual or a foreign","page_number":169,"box":{"x":69,"y":506,"width":773,"height":11}},{"id":"72861ab3-df99-43c7-ae31-6d4fc4b38db0","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":169,"box":{"x":69,"y":521,"width":817,"height":11}},{"id":"3d6e571d-6120-4d44-9b91-043f288b737d","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":169,"box":{"x":70,"y":536,"width":814,"height":11}},{"id":"59d706e6-9e40-441c-9338-47229fd92af9","block_type":"box","text":"having been paid by such shareholder. A Fund will repor t annually to its shareholders the amount per share of such","page_number":169,"box":{"x":69,"y":551,"width":821,"height":11}},{"id":"81e47b42-63f8-4532-bb85-7abd5ed508f2","block_type":"box","text":"foreign taxes and other information needed to claim the foreign tax credit.","page_number":169,"box":{"x":68,"y":566,"width":527,"height":11}},{"id":"1fb532e7-efac-4a9c-b3db-98ac128b2722","block_type":"box","text":"Cer tain transactions entered into by the Funds are subject to special tax rules of the Code that may, among","page_number":169,"box":{"x":102,"y":589,"width":768,"height":11}},{"id":"7460f296-9014-4197-8429-56936e875b05","block_type":"box","text":"other things, (a) affect the character of gains and losses realized, (b) disallow, suspend or otherwise limit the","page_number":169,"box":{"x":69,"y":604,"width":780,"height":11}},{"id":"657b3ed9-531b-4556-8372-20f3319c0c0a","block_type":"box","text":"allowance of cer tain losses or deductions, and (c) accelerate the recognition of income without a corresponding","page_number":169,"box":{"x":69,"y":619,"width":797,"height":11}},{"id":"f3ba2c9a-dc82-44c0-970f-424112f95cca","block_type":"box","text":"receipt of cash (with which to make the necessary distributions to satisfy distribution requirements applicable to","page_number":169,"box":{"x":69,"y":634,"width":802,"height":11}},{"id":"c642fafa-dc19-453b-94dd-049a63b7305c","block_type":"box","text":"regulated investment companies). Operation of these rules could, therefore, affect the character, amount and timing","page_number":169,"box":{"x":69,"y":649,"width":831,"height":12}},{"id":"ce4e4289-f470-4a85-a9ef-a0c66b26f0d7","block_type":"box","text":"of distributions to shareholders. Special tax rules also may require a Fund to mark-to-market cer tain types of","page_number":169,"box":{"x":69,"y":664,"width":776,"height":12}},{"id":"da47b091-c4b3-4a3e-a65b-a93bc539b573","block_type":"box","text":"positions in its por tfolio (","page_number":169,"box":{"x":70,"y":680,"width":177,"height":11}},{"id":"b44b8bd4-cf7f-4bc6-bd1b-ae41c06660e3","block_type":"box","text":"i.e.","page_number":169,"box":{"x":249,"y":680,"width":20,"height":9}},{"id":"0ec78bde-9729-47ac-996e-0d8fbefd0152","block_type":"box","text":", treat them as sold on the last day of the taxable year), and may result in the recognition","page_number":169,"box":{"x":272,"y":680,"width":636,"height":11}},{"id":"f242394e-17e7-4887-bf40-9a1049cdceba","block_type":"box","text":"of income without a corresponding receipt of cash. Funds engaging in transactions affected by these provisions","page_number":169,"box":{"x":69,"y":695,"width":795,"height":11}},{"id":"07626b8e-d896-49a3-98ad-ad962de47447","block_type":"box","text":"intend to monitor their transactions, make appropriate tax elections and make appropriate entries in their books and","page_number":169,"box":{"x":70,"y":710,"width":830,"height":11}},{"id":"e8ad7482-fa1b-42ae-bc5c-b92ea7616046","block_type":"box","text":"records to lessen the effect of these tax rules and avoid any possible disqualification from the special treatment","page_number":169,"box":{"x":69,"y":725,"width":804,"height":11}},{"id":"7492dcce-8eec-46f8-8418-3fcc0678bb68","block_type":"box","text":"afforded regulated investment companies under the Code.","page_number":169,"box":{"x":69,"y":740,"width":415,"height":11}},{"id":"d059d454-3695-46db-987b-281449da2fe4","block_type":"box","text":"Cer tain of a Fund’s investments in derivative instruments and foreign currency-denominated instruments, and","page_number":169,"box":{"x":102,"y":763,"width":781,"height":11}},{"id":"d434c44d-924e-4e9f-86fd-8d56e884040f","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":169,"box":{"x":69,"y":778,"width":835,"height":11}},{"id":"b1842e69-3abd-4583-acf0-93f30bc3e1f7","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":169,"box":{"x":70,"y":793,"width":811,"height":11}},{"id":"1bf37d94-6e83-4258-8ca8-c3f86be69bba","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":169,"box":{"x":69,"y":808,"width":818,"height":11}},{"id":"60564f0e-9f74-4557-b590-c7a88dba07c6","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":169,"box":{"x":69,"y":823,"width":820,"height":12}},{"id":"cf388c80-8142-4c1c-b7d1-8653958f5ee8","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":169,"box":{"x":69,"y":838,"width":834,"height":11}},{"id":"3fd2a26b-439e-4b7d-b521-7ebd7733afe0","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":169,"box":{"x":69,"y":853,"width":833,"height":12}},{"id":"b33adc71-01ea-49da-94a5-717d3ea1c0be","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":169,"box":{"x":69,"y":869,"width":805,"height":11}},{"id":"8e0ca51a-69f8-4797-82cd-5220e6e38722","block_type":"box","text":"II-134","page_number":169,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"015b7fbc-6c97-42dc-8cad-3558aedeb8f7","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":169,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ea5b8f34-92d1-4f26-9cbc-ca698077bf06","block_type":"box","text":"earnings and profits (including earnings and profits arising from tax-exempt income), (ii) thereafter, as a return of","page_number":170,"box":{"x":69,"y":45,"width":805,"height":11}},{"id":"c10f9558-32b9-47cf-b8ea-96ad5c7af87a","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":170,"box":{"x":69,"y":60,"width":822,"height":11}},{"id":"480b8e8c-777c-416f-af92-b7a986039010","block_type":"box","text":"capital asset.","page_number":170,"box":{"x":69,"y":75,"width":95,"height":11}},{"id":"961bf8e8-e158-4f53-aecf-09bbf081dfb8","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":170,"box":{"x":102,"y":98,"width":787,"height":11}},{"id":"0b80f2af-c656-4a39-b771-5642aa28469e","block_type":"box","text":"indefinitely or permanently deferred as “wash sales.” Distributions of shor t-term capital gains by underlying funds will","page_number":170,"box":{"x":70,"y":113,"width":836,"height":11}},{"id":"e853bc26-03a2-4f7d-95b1-1d688286c198","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":170,"box":{"x":69,"y":128,"width":812,"height":11}},{"id":"94d054f1-e9aa-4942-bcaa-a6d2f5575c0c","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":170,"box":{"x":69,"y":143,"width":805,"height":11}},{"id":"085264a4-296e-4eae-a959-4671488a631c","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":170,"box":{"x":68,"y":158,"width":829,"height":11}},{"id":"739d5659-73da-4a1e-8d9b-40d06ec9267f","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":170,"box":{"x":70,"y":173,"width":803,"height":11}},{"id":"e35a7443-0a50-4f5f-ae5c-c9e47e06b494","block_type":"box","text":"Fund were to invest otherwise.","page_number":170,"box":{"x":70,"y":188,"width":216,"height":9}},{"id":"0769d406-8516-46b7-9f6e-10e99188828d","block_type":"box","text":"A Fund may take cer tain positions through a wholly-owned (or majority-owned), foreign subsidiary (the","page_number":170,"box":{"x":101,"y":211,"width":721,"height":11}},{"id":"3c0a38d1-0fc9-46fd-a3e7-2db45706d833","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":170,"box":{"x":70,"y":226,"width":787,"height":11}},{"id":"09277539-e02d-4073-91dc-cf69e0ec1c06","block_type":"box","text":"income will be “subpar t F income” for U.S. federal income tax purposes. If that is the case, the Fund will be required","page_number":170,"box":{"x":70,"y":241,"width":831,"height":11}},{"id":"3e82ddbc-0a4c-4c92-914c-39da8d29aae7","block_type":"box","text":"to repor t all of the Subsidiary’s net income as ordinary income regardless of whether that income would be treated","page_number":170,"box":{"x":68,"y":256,"width":823,"height":12}},{"id":"e0ac3c19-6c28-4235-b52f-c64c0ef3543e","block_type":"box","text":"differently (for example, as capital gain) at the Subsidiary level and regardless of whether that income is distributed","page_number":170,"box":{"x":69,"y":271,"width":825,"height":12}},{"id":"bc9fa4fa-3a26-4673-a43e-4b0b1440ff91","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":170,"box":{"x":68,"y":286,"width":838,"height":12}},{"id":"1eb29b00-1362-44c0-87c2-11923515afc0","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":170,"box":{"x":68,"y":302,"width":830,"height":11}},{"id":"f307d9a3-f213-4616-8c38-39eaac2c1fc3","block_type":"box","text":"expected that the Subsidiary will be subject to an entity-level federal tax.","page_number":170,"box":{"x":69,"y":317,"width":515,"height":11}},{"id":"d3316e0f-bb3c-4da9-bd8c-f0e99e863edd","block_type":"box","text":"If a Fund purchases shares of an investment company (or similar investment entity) organized under foreign law,","page_number":170,"box":{"x":102,"y":339,"width":798,"height":12}},{"id":"f0e1b6a9-f251-4189-b67a-c02370f19e3f","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":170,"box":{"x":68,"y":355,"width":835,"height":11}},{"id":"793dfa1b-a59b-4769-9a6d-d1611637d542","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":170,"box":{"x":70,"y":370,"width":827,"height":11}},{"id":"1ddecf8f-c5f5-4369-980b-68f9cce099e0","block_type":"box","text":"to tax underpayments) on tax liability treated as having been deferred with respect to cer tain distributions from such","page_number":170,"box":{"x":68,"y":385,"width":830,"height":11}},{"id":"7099bf30-1a21-4385-96fb-75fc1aae701d","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":170,"box":{"x":69,"y":400,"width":802,"height":11}},{"id":"97084072-d7d3-402d-a1bb-862f413d5760","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":170,"box":{"x":69,"y":415,"width":821,"height":11}},{"id":"36e692f5-0144-4288-b90c-9f3325c8480d","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":170,"box":{"x":70,"y":430,"width":797,"height":11}},{"id":"5f64b30e-fe8b-432e-b0ac-8c0ccc54eff2","block_type":"box","text":"made separately for each PFIC held and, once made, would be effective for all subsequent taxable years, unless","page_number":170,"box":{"x":69,"y":445,"width":801,"height":11}},{"id":"99ec8da1-bcfd-4e04-80d9-a6f729a8266c","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":170,"box":{"x":69,"y":460,"width":818,"height":12}},{"id":"26706ba6-9b0c-44b3-89f5-ad12b6eca685","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":170,"box":{"x":68,"y":475,"width":797,"height":12}},{"id":"28017c77-e286-4ea1-b2a4-cd740d04a46f","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":170,"box":{"x":69,"y":491,"width":824,"height":11}},{"id":"35c0d84e-2893-41a8-a119-a920243ee781","block_type":"box","text":"to-market election, a Fund could avoid imposition of the interest charge with respect to excess distributions from","page_number":170,"box":{"x":68,"y":506,"width":804,"height":11}},{"id":"1d7d4eaa-cb78-406e-96db-168dab9a0647","block_type":"box","text":"PFICs, but in any par ticular year might be required to recognize income in excess of the distributions it received from","page_number":170,"box":{"x":69,"y":521,"width":831,"height":11}},{"id":"1482fb98-4f52-48d2-9945-12ff329fb1e9","block_type":"box","text":"PFICs.","page_number":170,"box":{"x":69,"y":536,"width":42,"height":9}},{"id":"060a063d-5339-424a-b8c4-4dc58bc4c08a","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":170,"box":{"x":102,"y":559,"width":804,"height":11}},{"id":"efda8960-d9ab-4290-beba-b9668cae67d4","block_type":"box","text":"of the foregoing requirements, the Fund would be required to include in income each year a por tion of the ordinary","page_number":170,"box":{"x":69,"y":574,"width":816,"height":11}},{"id":"78fe1954-c9fe-4592-b9e6-ffecbe4f9bf3","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":170,"box":{"x":69,"y":589,"width":816,"height":11}},{"id":"d241e606-7b3c-450c-9e69-d6566baf1846","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":170,"box":{"x":68,"y":604,"width":840,"height":11}},{"id":"45f0215e-947d-4a9f-8f28-b335d43ad5d2","block_type":"box","text":"the Fund would be required to obtain cer tain annual information from the PFICs in which it invests, which may be","page_number":170,"box":{"x":68,"y":619,"width":804,"height":11}},{"id":"5fbf3fb6-e109-4bc6-9b68-9a02199f1c25","block_type":"box","text":"difficult or impossible to obtain.","page_number":170,"box":{"x":69,"y":634,"width":225,"height":11}},{"id":"b9bfa1aa-465c-4f4a-acf3-3708895f5746","block_type":"box","text":"In cer tain situations, a Fund may, for a taxable year, defer all or a por tion of its net capital loss (or if there is no","page_number":170,"box":{"x":102,"y":657,"width":796,"height":11}},{"id":"4813b142-8c9a-48dd-93d6-f423b3107600","block_type":"box","text":"net capital loss, any net long-term or shor t-term capital loss) realized after October and its late-year ordinary loss","page_number":170,"box":{"x":69,"y":672,"width":806,"height":11}},{"id":"a18c8a63-54f6-4772-bfdc-8ee2bcc4226a","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":170,"box":{"x":69,"y":687,"width":778,"height":11}},{"id":"f5ce771b-bbeb-4bf8-bca5-1efe18b259c5","block_type":"box","text":"currency and PFIC gains plus the excess of post-December ordinary losses over post-December ordinary income) until","page_number":170,"box":{"x":69,"y":702,"width":838,"height":12}},{"id":"98ba1521-6f1a-4814-99d2-0f25183b9015","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":170,"box":{"x":68,"y":717,"width":824,"height":12}},{"id":"e3c9f046-8c09-4367-990a-927f3c807429","block_type":"box","text":"recognition of such realized losses. Such deferrals and other rules regarding gains and losses realized after October","page_number":170,"box":{"x":69,"y":732,"width":830,"height":12}},{"id":"244c323c-42dc-4aa9-b562-e09d43265af0","block_type":"box","text":"(or December) may affect the tax character of shareholder distributions.","page_number":170,"box":{"x":69,"y":748,"width":511,"height":11}},{"id":"1d416784-0eeb-4433-ae1f-c3279619889a","block_type":"box","text":"Municipal Funds","page_number":170,"box":{"x":102,"y":771,"width":115,"height":10}},{"id":"71d4c776-edd3-4e33-b782-4026cc1fd037","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":170,"box":{"x":102,"y":793,"width":798,"height":11}},{"id":"5ab5234c-e25d-405c-b5c4-7a9594eaad05","block_type":"box","text":"Code. Under such section if, at the close of each quar ter of a Fund’s taxable year, at least 50% of the value of the","page_number":170,"box":{"x":69,"y":808,"width":815,"height":11}},{"id":"ede1910b-871b-4040-b710-d596a66aa23a","block_type":"box","text":"Fund’s total assets consists of obligations exempt from U.S. federal income tax (“tax-exempt obligations”) under","page_number":170,"box":{"x":70,"y":823,"width":803,"height":12}},{"id":"d660db25-b86a-44c7-9486-3cfa4b67fa13","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":170,"box":{"x":69,"y":838,"width":826,"height":12}},{"id":"7ef9d92e-80b7-41f9-8fc4-55f233fca516","block_type":"box","text":"qualified to pay exempt-interest dividends to holders of all outstanding classes of its shares (together the","page_number":170,"box":{"x":69,"y":853,"width":752,"height":12}},{"id":"923534eb-8e8a-4e92-b85b-764b60dd3dd6","block_type":"box","text":"“shareholders”). Exempt-interest dividends are dividends or any par t thereof paid by a Fund that are attributable to","page_number":170,"box":{"x":70,"y":869,"width":817,"height":11}},{"id":"d217919a-35cf-4196-88ef-85ea5b6f7e38","block_type":"box","text":"interest on tax-exempt obligations and repor ted by the Fund as exempt-interest dividends. A Fund will allocate","page_number":170,"box":{"x":70,"y":884,"width":780,"height":11}},{"id":"e2c473ee-563e-4eec-bd50-cd81e2f51b32","block_type":"box","text":"interest from tax-exempt obligations (as well as ordinary income, capital gains and tax preference items discussed","page_number":170,"box":{"x":70,"y":899,"width":815,"height":11}},{"id":"64b6886d-858c-41ce-8b8e-0d8d85c295bf","block_type":"box","text":"II-135","page_number":170,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"5225d8ef-945d-494f-8ab1-8ad0f57e24f0","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":170,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"b5e4adc5-34c0-4d09-8287-29017e83928c","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":171,"box":{"x":69,"y":45,"width":839,"height":11}},{"id":"bbc24f60-2454-489e-93c5-e5dd09d90727","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":171,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"5e92d937-c814-4c25-9573-dbb146cfcd7b","block_type":"box","text":"to each class of shareholders during the taxable year, or such other method as the IRS may prescribe.","page_number":171,"box":{"x":68,"y":75,"width":730,"height":11}},{"id":"ecc0e341-dbec-4131-bd57-2138c1a08ccf","block_type":"box","text":"Exempt-interest dividends will be excludable from a shareholder’s gross income for U.S. federal income tax","page_number":171,"box":{"x":102,"y":98,"width":763,"height":11}},{"id":"86573f12-4fb0-40be-a840-2a097c66f7cd","block_type":"box","text":"purposes. Exempt-interest dividends are included, however, in determining the por tion, if any, of a person’s social","page_number":171,"box":{"x":70,"y":113,"width":809,"height":11}},{"id":"2a949665-fa7a-4d66-8b09-72d51df90dc8","block_type":"box","text":"security and railroad retirement benefits subject to U.S. federal income taxes. Interest on indebtedness incurred or","page_number":171,"box":{"x":69,"y":128,"width":821,"height":11}},{"id":"7ece56da-2b16-4651-ba74-76144945b23b","block_type":"box","text":"continued to purchase or carry shares of a regulated investment company paying exempt-interest dividends, such as","page_number":171,"box":{"x":69,"y":143,"width":831,"height":11}},{"id":"6890bb01-9088-4f0b-b091-6a61bed0494c","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":171,"box":{"x":68,"y":158,"width":800,"height":11}},{"id":"29ea7a9e-6dbd-472c-9340-5ef1bbea59cb","block_type":"box","text":"exempt-interest dividends. Shareholders are advised to consult their tax advisors with respect to whether exempt","page_number":171,"box":{"x":69,"y":173,"width":810,"height":11}},{"id":"043bd746-a53f-49b5-b26b-2c35a4d24920","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":171,"box":{"x":70,"y":188,"width":836,"height":11}},{"id":"8fe573af-fc93-42fa-8f18-2f5a9a464024","block_type":"box","text":"user” or “related person” under Code Section 147(a) with respect to proper ty financed with the proceeds of an issue","page_number":171,"box":{"x":69,"y":203,"width":835,"height":12}},{"id":"7ae07d3c-7b53-449d-9747-1cd3137f6a6a","block_type":"box","text":"of PABs, if any, held by a Fund.","page_number":171,"box":{"x":69,"y":218,"width":217,"height":12}},{"id":"11e6d249-4900-4381-b55f-6d7925d637ad","block_type":"box","text":"Substitute payments received by a Fund representing interest paid on tax-exempt obligations loaned out by the","page_number":171,"box":{"x":102,"y":241,"width":788,"height":11}},{"id":"5601bb8b-7df3-4ba9-af10-fd102a29f3b2","block_type":"box","text":"Fund will not be considered exempt interest, and distributions by the Fund of such substitute payments will not","page_number":171,"box":{"x":70,"y":256,"width":790,"height":11}},{"id":"353d4dd9-3687-4867-bb5b-84e99ebc8a8f","block_type":"box","text":"constitute exempt-interest dividends.","page_number":171,"box":{"x":69,"y":272,"width":261,"height":10}},{"id":"50517acd-8001-4ff0-8090-4d0ba2ae15e5","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":171,"box":{"x":102,"y":294,"width":765,"height":11}},{"id":"26bfdb9f-6212-4eec-b988-edb32532bcd9","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":171,"box":{"x":69,"y":309,"width":819,"height":11}},{"id":"9532f55a-8e60-4033-96f6-63c6b4aa5617","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":171,"box":{"x":68,"y":324,"width":813,"height":12}},{"id":"e011f13c-8015-41bf-b62e-29e1cf3c4c98","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":171,"box":{"x":70,"y":339,"width":809,"height":12}},{"id":"1b9a8cc2-fdd2-47b6-935b-9e61159d048e","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":171,"box":{"x":69,"y":355,"width":829,"height":11}},{"id":"332f2234-387e-4014-a38f-ffddfff3080e","block_type":"box","text":"any capital gain dividends received by the shareholder.","page_number":171,"box":{"x":69,"y":370,"width":388,"height":11}},{"id":"e04d2275-568b-4690-aaa8-654042198ca5","block_type":"box","text":"All or a por tion of a Fund’s gains from the sale or redemption of tax-exempt obligations purchased at a market","page_number":171,"box":{"x":101,"y":392,"width":787,"height":12}},{"id":"7d76ffef-73b2-451d-8968-15b6fb40981e","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":171,"box":{"x":69,"y":407,"width":817,"height":12}},{"id":"c3881a0b-c05a-4493-a449-64f452d2edda","block_type":"box","text":"income dividends received by shareholders.","page_number":171,"box":{"x":70,"y":423,"width":309,"height":11}},{"id":"7acfebfe-c97e-4ee8-a3fe-5ab06df61f17","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":171,"box":{"x":101,"y":446,"width":766,"height":11}},{"id":"7875c266-e237-4a35-b58e-2c5f74660396","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":171,"box":{"x":69,"y":460,"width":808,"height":12}},{"id":"499c4daf-b946-4fac-b633-28710fc201dc","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":171,"box":{"x":70,"y":476,"width":815,"height":11}},{"id":"da97bbc9-8181-4910-97d9-d0aec1551174","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":171,"box":{"x":70,"y":491,"width":815,"height":11}},{"id":"4fff2ab3-927e-4169-a1c0-642899143685","block_type":"box","text":"the accrued market discount.","page_number":171,"box":{"x":68,"y":506,"width":208,"height":9}},{"id":"1f7d8ce4-a2be-454e-b8d1-49bf4647223f","block_type":"box","text":"The Code subjects interest received on cer tain otherwise tax-exempt securities to a federal alternative minimum","page_number":171,"box":{"x":101,"y":528,"width":801,"height":12}},{"id":"5bab3595-dff5-48e0-9c01-4d280e9fbddc","block_type":"box","text":"tax. The alternative minimum tax applies to interest received on cer tain “PABs” issued after August 7, 1986. PABs","page_number":171,"box":{"x":68,"y":543,"width":818,"height":12}},{"id":"0bb63f4a-9ea5-4745-982c-0c1adbc00035","block_type":"box","text":"are bonds that, although tax-exempt, are used for purposes other than those generally per formed by governmental","page_number":171,"box":{"x":69,"y":559,"width":816,"height":11}},{"id":"ad0bb26e-aa36-4be0-a816-fc9cc4014596","block_type":"box","text":"units and that benefit non-governmental entities (","page_number":171,"box":{"x":69,"y":574,"width":351,"height":11}},{"id":"15fdcef7-d326-4436-ba5f-5d4fa3bc170b","block_type":"box","text":"e.g.","page_number":171,"box":{"x":422,"y":575,"width":24,"height":10}},{"id":"bc6256e2-371a-48cc-99a8-c063645c855c","block_type":"box","text":", bonds used for industrial development or housing purposes).","page_number":171,"box":{"x":449,"y":574,"width":441,"height":11}},{"id":"3c3601d9-6759-4bd6-ba60-f06c0ce3b323","block_type":"box","text":"Income received on such bonds is classified as an item of “tax preference,” which could subject cer tain investors in","page_number":171,"box":{"x":70,"y":589,"width":827,"height":11}},{"id":"50d87535-dfb8-49f9-a136-911ca7806759","block_type":"box","text":"such bonds, including shareholders of a Fund, to a federal alternative minimum tax. A Fund will purchase such","page_number":171,"box":{"x":69,"y":604,"width":786,"height":11}},{"id":"375fbb2a-ef93-4d9c-a72c-45ccba28bc0d","block_type":"box","text":"“PABs” and will repor t to shareholders after the close of the calendar year the por tion of the Fund’s dividends","page_number":171,"box":{"x":70,"y":619,"width":782,"height":11}},{"id":"1eea4c71-2a5f-45f3-8dc6-8284b7c0c986","block_type":"box","text":"declared during the year that constitute an item of tax preference for alternative minimum tax purposes.","page_number":171,"box":{"x":69,"y":634,"width":740,"height":12}},{"id":"465d9c3e-ba44-4c9a-8045-36f9d90c01a3","block_type":"box","text":"Each Municipal Fund may engage in interest rate swap transactions. The U.S. federal income tax rules governing","page_number":171,"box":{"x":102,"y":657,"width":802,"height":11}},{"id":"3df29861-a6cd-4578-96b2-af60382a0d69","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":171,"box":{"x":68,"y":672,"width":812,"height":11}},{"id":"5b63e1b0-fec1-4bac-9a0d-8868db8e2f3a","block_type":"box","text":"such arrangements as ordinary income and to amor tize payments made under cer tain circumstances. Because","page_number":171,"box":{"x":69,"y":687,"width":794,"height":11}},{"id":"82e32dc1-6e77-4942-8f37-d1409f9c15af","block_type":"box","text":"payments received by a Fund in connection with swap transactions will be taxable rather than tax-exempt and","page_number":171,"box":{"x":70,"y":703,"width":776,"height":10}},{"id":"f66d49b8-497d-495e-ab03-aab696efc981","block_type":"box","text":"because swap payments made by a Fund will offset both taxable and tax-exempt gross income propor tionately, they","page_number":171,"box":{"x":69,"y":717,"width":826,"height":12}},{"id":"93219f1e-d6ab-4ffa-873f-773515dd5cd2","block_type":"box","text":"may result in increased taxable distributions to shareholders.","page_number":171,"box":{"x":69,"y":733,"width":436,"height":11}},{"id":"3aa380bd-f809-4fb0-b04b-d29ef8301fc7","block_type":"box","text":"Please see Par t I of your Fund’s SAI for cer tain state tax information relevant to an investment in BlackRock","page_number":171,"box":{"x":102,"y":755,"width":771,"height":11}},{"id":"3b5afb98-20d5-4e77-bd87-d015b07b806f","block_type":"box","text":"California Municipal Oppor tunities Fund, BlackRock New Jersey Municipal Bond Fund, BlackRock New York Municipal","page_number":171,"box":{"x":69,"y":770,"width":828,"height":11}},{"id":"69c59d70-e655-4e37-8db9-4c9ad8b26365","block_type":"box","text":"Oppor tunities Fund and BlackRock Pennsylvania Municipal Bond Fund, as well as information on economic conditions","page_number":171,"box":{"x":69,"y":785,"width":836,"height":12}},{"id":"f8500d85-5893-4974-b399-e4f300047d8a","block_type":"box","text":"within each applicable state.","page_number":171,"box":{"x":68,"y":801,"width":203,"height":11}},{"id":"aae68eb8-4b0a-4c3b-94fa-a32727096c39","block_type":"box","text":"In the case of a Feeder Fund, such Fund is entitled to look to the underlying assets of the Master Por tfolio in","page_number":171,"box":{"x":102,"y":823,"width":774,"height":12}},{"id":"23588acc-d797-467f-9cdf-62d803c91178","block_type":"box","text":"which it has invested for purposes of satisfying various qualification requirements of the Code applicable to regulated","page_number":171,"box":{"x":68,"y":838,"width":837,"height":12}},{"id":"5c51c766-e817-420f-96ec-2adbbf856fda","block_type":"box","text":"investment companies. Each Master Por tfolio is classified either as a par tnership or a separate disregarded entity","page_number":171,"box":{"x":70,"y":853,"width":816,"height":12}},{"id":"2927ec72-b1fa-4eb0-ab0c-0f1725fe3a28","block_type":"box","text":"(depending on the par ticular Master Por tfolio) for U.S. federal income tax purposes. If applicable tax provisions were","page_number":171,"box":{"x":69,"y":869,"width":830,"height":11}},{"id":"1aa98908-f04b-42b4-83a2-f4206bfdf815","block_type":"box","text":"to change the classification of a Master Por tfolio, then the Board of Directors of a Feeder Fund would determine, in","page_number":171,"box":{"x":68,"y":884,"width":822,"height":11}},{"id":"09380812-9bf6-4ed4-b354-ed8619734a7a","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":171,"box":{"x":70,"y":899,"width":783,"height":11}},{"id":"b1a64087-e668-438e-9e14-8d00a10f5aa7","block_type":"box","text":"II-136","page_number":171,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"d30118be-14ef-4a19-967e-24faac199f42","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":171,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a7063069-1a3b-4942-b100-fd61c9c62957","block_type":"box","text":"withdraw the Feeder Fund’s investments from the Master Por tfolio and to retain an investment manager to manage","page_number":172,"box":{"x":68,"y":45,"width":822,"height":11}},{"id":"e9e82925-094e-4924-8875-ec0e07067091","block_type":"box","text":"the Feeder Fund’s assets in accordance with the investment policies applicable to the Feeder Fund.","page_number":172,"box":{"x":68,"y":60,"width":710,"height":11}},{"id":"16cf98f2-6374-4002-8185-e762e3f1945f","block_type":"box","text":"Ordinary income and capital gain dividends may also be subject to state and local taxes. Cer tain states exempt","page_number":172,"box":{"x":102,"y":83,"width":796,"height":11}},{"id":"b8c75f4d-0a5e-4cb7-8df7-444d56c1cbe5","block_type":"box","text":"from state income taxation dividends paid by regulated investment companies that are derived from interest on U.S.","page_number":172,"box":{"x":68,"y":98,"width":828,"height":11}},{"id":"e7bfe620-1d8f-432a-980f-5a1451a2dda8","block_type":"box","text":"government obligations. State law varies as to whether dividend income attributable to U.S. government obligations is","page_number":172,"box":{"x":68,"y":113,"width":841,"height":11}},{"id":"edbcf0b2-093e-4e23-ab57-cedb1b78179d","block_type":"box","text":"exempt from state income tax.","page_number":172,"box":{"x":69,"y":128,"width":216,"height":11}},{"id":"ba123849-b502-4aae-8031-7f932a63fac3","block_type":"box","text":"Shareholders of each Fund are urged to consult their tax advisers regarding specific questions as to federal,","page_number":172,"box":{"x":102,"y":150,"width":771,"height":12}},{"id":"cdf6f35a-4928-41c5-b063-01949391e032","block_type":"box","text":"foreign, state or local taxes with respect to their Fund. Foreign investors should consider applicable foreign taxes in","page_number":172,"box":{"x":68,"y":166,"width":823,"height":11}},{"id":"29d6b0b3-a089-4773-bd7f-83beb3089380","block_type":"box","text":"their evaluation of an investment in a Fund.","page_number":172,"box":{"x":68,"y":181,"width":309,"height":9}},{"id":"20e45e66-08d3-4393-abfa-db52bedc07e6","block_type":"box","text":"The foregoing general discussion of U.S. federal income tax consequences is based on the Code and the","page_number":172,"box":{"x":101,"y":203,"width":749,"height":12}},{"id":"d0c55a52-5853-4a18-a496-db41e8099d46","block_type":"box","text":"regulations issued thereunder as in effect on the date of this SAI. Future legislative or administrative changes or","page_number":172,"box":{"x":69,"y":218,"width":803,"height":12}},{"id":"cecfead4-4911-4a0b-88aa-69fa8e9a33ca","block_type":"box","text":"cour t decisions may significantly change the conclusions expressed in this discussion, and any such changes or","page_number":172,"box":{"x":69,"y":234,"width":801,"height":11}},{"id":"6248db7b-0fcd-4325-a404-596b582d50af","block_type":"box","text":"decisions may have a retroactive effect.","page_number":172,"box":{"x":69,"y":249,"width":283,"height":11}},{"id":"0af7e775-a906-42c0-928b-42628362d9d7","block_type":"box","text":"PERFORMANCE DATA","page_number":172,"box":{"x":403,"y":278,"width":173,"height":10}},{"id":"aa7d90a4-02db-4791-acd0-0601553203ef","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":172,"box":{"x":102,"y":301,"width":738,"height":11}},{"id":"94f70ea4-d1cc-4c03-889b-7fbf20b9645a","block_type":"box","text":"applicable, yield and tax-equivalent yield in adver tisements or information furnished to present or prospective","page_number":172,"box":{"x":69,"y":316,"width":779,"height":11}},{"id":"054a67d3-4e68-4d9a-bd28-78dc847a6f80","block_type":"box","text":"shareholders. Total return, yield and tax-equivalent yield each is based on a Fund’s historical per formance and is not","page_number":172,"box":{"x":69,"y":331,"width":833,"height":11}},{"id":"73eba88b-3f00-4d16-ad6c-26fbf73e999d","block_type":"box","text":"intended to indicate future per formance. Average annual total return is determined separately for each class of","page_number":172,"box":{"x":70,"y":346,"width":792,"height":12}},{"id":"02536290-2735-4b6e-af39-704ecb731795","block_type":"box","text":"shares in accordance with a formula specified by the Commission.","page_number":172,"box":{"x":69,"y":361,"width":473,"height":12}},{"id":"e9d5a108-19ec-45aa-a954-85e9a8b00159","block_type":"box","text":"Quotations of average annual total return, before tax, for the specified periods are computed by finding the","page_number":172,"box":{"x":102,"y":384,"width":761,"height":11}},{"id":"fa4b1a2b-f21f-43d2-9fe7-510dcb101c39","block_type":"box","text":"average annual compounded rates of return (based on net investment income and any realized and unrealized capital","page_number":172,"box":{"x":69,"y":399,"width":836,"height":12}},{"id":"b97dbea6-d5b6-47ad-8ddc-e801d382a745","block_type":"box","text":"gains or losses on por tfolio investments over such periods) that would equate the initial amount invested to the","page_number":172,"box":{"x":68,"y":414,"width":798,"height":12}},{"id":"4ff8a143-f8ca-4864-a4be-159c095dcdb8","block_type":"box","text":"redeemable value of such investment at the end of each period. Average annual total return before taxes is","page_number":172,"box":{"x":69,"y":429,"width":765,"height":12}},{"id":"192ae02a-cc3e-4136-9141-57533fe93358","block_type":"box","text":"computed assuming all dividends are reinvested and taking into account all applicable recurring and nonrecurring","page_number":172,"box":{"x":69,"y":445,"width":808,"height":11}},{"id":"32ecbf36-bee8-425f-894f-4f5f88712133","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":172,"box":{"x":69,"y":460,"width":813,"height":11}},{"id":"5daa538a-f75d-484e-99ba-0ec5a41d8e20","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":172,"box":{"x":69,"y":475,"width":839,"height":11}},{"id":"ad47e192-b255-42ad-9dd2-8bf5a95e394a","block_type":"box","text":"but does not take into account taxes payable on dividends or on redemption.","page_number":172,"box":{"x":69,"y":490,"width":546,"height":11}},{"id":"1500f337-b178-418f-a1a9-337f30f8f6c6","block_type":"box","text":"Quotations of average annual total return, after taxes, on dividends for the specified periods are computed by","page_number":172,"box":{"x":102,"y":513,"width":781,"height":11}},{"id":"ec13065e-1ab1-4487-83d7-3195b7295780","block_type":"box","text":"finding the average annual compounded rates of return that would equate the initial amount invested to the ending","page_number":172,"box":{"x":68,"y":528,"width":819,"height":11}},{"id":"782ec611-d021-4ddb-9ed9-8a5c7842ade5","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":172,"box":{"x":68,"y":543,"width":810,"height":11}},{"id":"7f30c8c9-c3a7-4cc2-b4dc-074b56835ee6","block_type":"box","text":"period. Average annual total return after taxes on dividends is computed assuming all dividends, less the taxes due","page_number":172,"box":{"x":70,"y":558,"width":823,"height":11}},{"id":"bb1f258d-0f1b-4853-9a57-72c4ada7d986","block_type":"box","text":"on such dividends, are reinvested and taking into account all applicable recurring and nonrecurring expenses,","page_number":172,"box":{"x":69,"y":573,"width":780,"height":11}},{"id":"d72adc47-11db-40f8-bdf3-f37824b516b4","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":172,"box":{"x":70,"y":588,"width":825,"height":12}},{"id":"96ba566a-2c10-4c13-95c2-12d6ae810633","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":172,"box":{"x":69,"y":603,"width":817,"height":11}},{"id":"f1de9115-5e80-499d-aaac-b0c7900bbafa","block_type":"box","text":"due on dividends are calculated by applying to each dividend the highest applicable marginal U.S. federal individual","page_number":172,"box":{"x":69,"y":618,"width":820,"height":12}},{"id":"b3a8339c-c459-4f23-876c-2db829284bfb","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":172,"box":{"x":70,"y":634,"width":833,"height":11}},{"id":"e1c5f748-d045-4580-89dd-9e3ffc88f2ad","block_type":"box","text":"(including eligibility for the maximum 20% tax rate applicable to qualified dividend income) of each dividend. The","page_number":172,"box":{"x":69,"y":649,"width":797,"height":11}},{"id":"b3889d54-331d-44db-a09f-1ddf4d21ebd0","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":172,"box":{"x":68,"y":664,"width":824,"height":11}},{"id":"cab77972-bed2-456a-879f-ee7d23f54f83","block_type":"box","text":"may be adjusted to reflect subsequent recharacterizations of distributions. The applicable tax rates may vary over the","page_number":172,"box":{"x":69,"y":679,"width":837,"height":11}},{"id":"44289dcf-fe22-4b08-b69b-3eeecd38b05e","block_type":"box","text":"measurement period. The effects of state and local taxes are not reflected. Applicable tax credits, such as foreign","page_number":172,"box":{"x":69,"y":694,"width":814,"height":11}},{"id":"f078f1b9-f665-46eb-8ca6-873ed77a47b3","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":172,"box":{"x":69,"y":709,"width":830,"height":11}},{"id":"2f4ebc05-0c4a-4935-b41f-683e2b009657","block_type":"box","text":"redemption at the end of the applicable periods with no tax consequences associated with such redemption.","page_number":172,"box":{"x":69,"y":724,"width":774,"height":11}},{"id":"1f212c64-1578-453b-a7bb-d0083e621f3f","block_type":"box","text":"Quotations of average annual total return, after taxes, on both dividends and redemption for the specified","page_number":172,"box":{"x":102,"y":747,"width":752,"height":11}},{"id":"e43f1114-2cdf-41a8-9254-31e8c05c2434","block_type":"box","text":"periods are computed by finding the average annual compounded rates of return that would equate the initial amount","page_number":172,"box":{"x":70,"y":762,"width":835,"height":11}},{"id":"08283ae9-2001-4cf5-800b-06d4069639a7","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":172,"box":{"x":70,"y":777,"width":820,"height":12}},{"id":"e07307a8-6917-4297-8150-129208f39788","block_type":"box","text":"received during such period as well as on complete redemption. Average annual total return after taxes on","page_number":172,"box":{"x":69,"y":792,"width":756,"height":12}},{"id":"4da38072-6547-4182-9e8d-72ae7665556e","block_type":"box","text":"distributions and redemption is computed assuming all dividends, less the taxes due on such dividends, are","page_number":172,"box":{"x":69,"y":808,"width":772,"height":11}},{"id":"22133994-15ff-48db-90ff-34aa17540208","block_type":"box","text":"reinvested and taking into account all applicable recurring and nonrecurring expenses, including the maximum sales","page_number":172,"box":{"x":69,"y":823,"width":827,"height":11}},{"id":"496dd7e5-dbfd-44fa-a33d-19d9b35e2e6b","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":172,"box":{"x":69,"y":838,"width":825,"height":11}},{"id":"6680ae8e-ce7d-43b7-9d51-baa801bfda75","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":172,"box":{"x":70,"y":853,"width":812,"height":11}},{"id":"2b61761a-a176-49d2-abf4-cdd6cc29edba","block_type":"box","text":"complete redemption and payment of taxes due on such redemption. The ending value is determined assuming","page_number":172,"box":{"x":69,"y":868,"width":795,"height":11}},{"id":"cbccfe9c-aa7c-49cf-b2f0-00b79a69bfbd","block_type":"box","text":"complete redemption at the end of the applicable periods, subtracting capital gains taxes resulting from the","page_number":172,"box":{"x":69,"y":883,"width":768,"height":11}},{"id":"467ea36f-babf-427f-ab2f-3f5230799824","block_type":"box","text":"redemption and adding the presumed tax benefit from capital losses resulting from redemption. The taxes due on","page_number":172,"box":{"x":69,"y":898,"width":810,"height":11}},{"id":"67e2b199-ac6b-4541-8202-665ba7aa9bd6","block_type":"box","text":"II-137","page_number":172,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"b75b4ed4-a1eb-4cbf-b7f1-66d2d0fc79c9","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":172,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"5cce9f8a-1148-41b5-8266-f539d205aec3","block_type":"box","text":"dividends and on the deemed redemption are calculated by applying the highest applicable marginal U.S. federal","page_number":173,"box":{"x":69,"y":45,"width":802,"height":11}},{"id":"39692a4c-a3db-4d6e-b7b2-090c8908b5b6","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":173,"box":{"x":70,"y":60,"width":825,"height":11}},{"id":"c236d7db-a068-444c-b702-ff85862dff17","block_type":"box","text":"the tax character (including eligibility for the maximum 20% tax rate applicable to qualified dividend income) of each","page_number":173,"box":{"x":68,"y":75,"width":823,"height":11}},{"id":"3eef4329-c5c2-4810-8d34-dde16d03bda8","block_type":"box","text":"component of each dividend and/or the redemption payment. The applicable tax rates may vary over the","page_number":173,"box":{"x":69,"y":90,"width":743,"height":11}},{"id":"2e8bc0f8-6d8e-4b83-9421-bc5dd89ae7a0","block_type":"box","text":"measurement period. The effects of state and local taxes are not reflected. Applicable tax credits, such as foreign","page_number":173,"box":{"x":69,"y":105,"width":814,"height":11}},{"id":"3908b6bc-30d8-4876-afb9-49bd11f879f2","block_type":"box","text":"tax credits, are taken into account according to federal law.","page_number":173,"box":{"x":68,"y":120,"width":422,"height":12}},{"id":"dba38845-d3b4-4c60-b73f-ad6ff876862e","block_type":"box","text":"A Fund also may quote annual, average annual and annualized total return and aggregate total return","page_number":173,"box":{"x":101,"y":143,"width":720,"height":11}},{"id":"5ab2dcc3-de45-4af3-85f3-a09537c375f7","block_type":"box","text":"per formance data, both as a percentage and as a dollar amount based on a hypothetical investment of $1,000 or","page_number":173,"box":{"x":70,"y":157,"width":813,"height":12}},{"id":"3ae97620-e0d2-41e7-bf1a-6e60a02a13ab","block_type":"box","text":"some other amount, for various periods other than those noted in Par t I of each Fund’s SAI. Such data will be","page_number":173,"box":{"x":69,"y":173,"width":781,"height":11}},{"id":"e90d19bd-891f-4d19-8e58-8fdeaf7f5a01","block_type":"box","text":"computed as described above, except that (1) as required by the periods of the quotations, actual annual, annualized","page_number":173,"box":{"x":69,"y":188,"width":837,"height":11}},{"id":"0f84d491-9ac7-4513-9e31-5bdeb445bb78","block_type":"box","text":"or aggregate data, rather than average annual data, may be quoted and (2) the maximum applicable sales charges","page_number":173,"box":{"x":69,"y":203,"width":817,"height":12}},{"id":"2b6049cf-e93a-4ae3-96c5-55f864bcd6bd","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":173,"box":{"x":68,"y":218,"width":815,"height":11}},{"id":"69129699-0ff5-452e-a3ee-a21afcddc521","block_type":"box","text":"per formance data calculations of including or excluding the maximum applicable sales charges, actual annual or","page_number":173,"box":{"x":70,"y":234,"width":801,"height":11}},{"id":"000a5aa8-1e01-4622-ab8d-d9ad8d9463de","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":173,"box":{"x":69,"y":249,"width":819,"height":11}},{"id":"9992a29d-c0c3-4c4b-8090-6c7ea8dff2d1","block_type":"box","text":"return reflect compounding of return; aggregate total return data generally will be higher than average annual total","page_number":173,"box":{"x":69,"y":264,"width":811,"height":11}},{"id":"e1788757-a130-42a1-b4bc-df23603ee9bf","block_type":"box","text":"return data since the aggregate rates of return reflect compounding over a longer period of time.","page_number":173,"box":{"x":69,"y":279,"width":686,"height":11}},{"id":"c79ac0f8-3197-48c9-ac48-4bc3b10e0319","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":173,"box":{"x":101,"y":302,"width":796,"height":11}},{"id":"534ddd91-248e-45c1-9e1c-21e705599654","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":173,"box":{"x":69,"y":317,"width":821,"height":11}},{"id":"01ab0f51-390c-4313-afc8-5a8033da765b","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":173,"box":{"x":68,"y":332,"width":817,"height":11}},{"id":"419f3a5f-3308-40b7-b22c-d308267c6772","block_type":"box","text":"Tax equivalent yield quotations will be computed by dividing (a) the par t of a Fund’s yield that is tax-exempt by (b) one","page_number":173,"box":{"x":68,"y":347,"width":837,"height":11}},{"id":"f8df12ae-2ca4-4dcc-8088-1b0999dda866","block_type":"box","text":"minus a stated tax rate and adding the result to that par t, if any, of the Fund’s yield that is not tax-exempt.","page_number":173,"box":{"x":69,"y":362,"width":759,"height":11}},{"id":"57eb03c0-93f8-4bf3-95b3-1fa15203b27d","block_type":"box","text":"A Fund’s total return will vary depending on market conditions, the securities comprising a Fund’s por tfolio, a","page_number":173,"box":{"x":101,"y":385,"width":779,"height":11}},{"id":"cfffd244-7ced-4b6d-be63-1f1d1e73a40f","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":173,"box":{"x":70,"y":400,"width":819,"height":11}},{"id":"7bee3b42-9852-4fa9-b13d-8e40c01fd3a9","block_type":"box","text":"The value of an investment in a Fund will fluctuate and an investor’s shares, when redeemed, may be wor th more or","page_number":173,"box":{"x":68,"y":415,"width":830,"height":11}},{"id":"6aba1dd3-6a69-4be0-973c-c9829750ab63","block_type":"box","text":"less than their original cost.","page_number":173,"box":{"x":70,"y":430,"width":196,"height":11}},{"id":"f769887b-1526-451b-8c22-a0e4f66fd2f5","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":173,"box":{"x":102,"y":453,"width":782,"height":11}},{"id":"54fd074b-bbe6-44f8-8a76-0d6d767ca8c1","block_type":"box","text":"the case of CDSC shares applicable to cer tain investors, as described under “Purchase of Shares” and “Redemption","page_number":173,"box":{"x":68,"y":468,"width":836,"height":11}},{"id":"ba5d28af-9b30-4ad4-b5dc-48e87d730007","block_type":"box","text":"of Shares,” respectively, the total return data quoted by a Fund in adver tisements directed to such investors may","page_number":173,"box":{"x":69,"y":483,"width":807,"height":11}},{"id":"1943593a-f181-461a-8c35-08cd4b454e0f","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":173,"box":{"x":68,"y":498,"width":820,"height":11}},{"id":"26991994-3625-4bc8-8c98-0b7e8af0f082","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":173,"box":{"x":68,"y":513,"width":824,"height":12}},{"id":"1611e745-552f-4559-96f4-ba72e126e68c","block_type":"box","text":"lower amount of expenses is deducted.","page_number":173,"box":{"x":70,"y":528,"width":278,"height":11}},{"id":"97884097-dc67-4403-9a59-f479deb3da77","block_type":"box","text":"On occasion, a Fund may compare its per formance to, among other things, the Fund’s benchmark index","page_number":173,"box":{"x":102,"y":551,"width":741,"height":11}},{"id":"a8300c95-7df5-440e-aa24-2fd37270e6ba","block_type":"box","text":"indicated in the Prospectus, the Value Line Composite Index, the Dow Jones Industrial Average, or to other published","page_number":173,"box":{"x":70,"y":566,"width":830,"height":11}},{"id":"cf912e5e-06bc-42c4-aaf8-85020d5fc59f","block_type":"box","text":"indices, or to per formance data published by Lipper Inc., Morningstar, Inc. (“Morningstar”),","page_number":173,"box":{"x":70,"y":581,"width":646,"height":12}},{"id":"f363dc33-068e-456e-b839-d755572ab05c","block_type":"box","text":"Money Magazine, U.S.","page_number":173,"box":{"x":724,"y":581,"width":156,"height":12}},{"id":"8e6426dd-cf28-45bf-a4b4-c3cff256d2fe","block_type":"box","text":"News & World Repor t, BusinessWeek, Forbes Magazine, For tune Magazine","page_number":173,"box":{"x":70,"y":597,"width":533,"height":11}},{"id":"58b86839-c5db-4900-abc1-b5dc8629603e","block_type":"box","text":"or other industry publications. When","page_number":173,"box":{"x":608,"y":597,"width":257,"height":11}},{"id":"1b71babe-9e4a-4cba-9dbd-02ba665c92bf","block_type":"box","text":"comparing its per formance to a market index, a Fund may refer to various statistical measures derived from the","page_number":173,"box":{"x":69,"y":612,"width":797,"height":11}},{"id":"05e4bcb8-2dd1-49e6-ab17-0728c9d27498","block_type":"box","text":"historical per formance of a Fund and the index, such as standard deviation and beta. As with other per formance","page_number":173,"box":{"x":69,"y":627,"width":803,"height":11}},{"id":"0a1c93cc-1681-4bbc-a17e-97ddba532b9b","block_type":"box","text":"data, per formance comparisons should not be considered indicative of a Fund’s relative per formance for any future","page_number":173,"box":{"x":69,"y":642,"width":824,"height":11}},{"id":"649c6c2a-4376-47fe-8d75-1586b698a99c","block_type":"box","text":"period. In addition, from time to time a Fund may include the Fund’s Morningstar risk-adjusted per formance ratings","page_number":173,"box":{"x":70,"y":657,"width":818,"height":11}},{"id":"94a69b6d-0096-4858-9e82-f1ec3f52be66","block_type":"box","text":"assigned by Morningstar in adver tising or supplemental sales literature. From time to time a Fund may quote in","page_number":173,"box":{"x":69,"y":672,"width":793,"height":11}},{"id":"5dee64e5-2290-450b-bf76-264425a6cebd","block_type":"box","text":"adver tisements or other materials other applicable measures of Fund per formance and may also make reference to","page_number":173,"box":{"x":69,"y":687,"width":826,"height":11}},{"id":"df6301fc-3e4d-4afc-8432-e99a4df7866a","block_type":"box","text":"awards that may be given to the Manager. Cer tain Funds may also compare their per formance to composite indices","page_number":173,"box":{"x":69,"y":702,"width":825,"height":12}},{"id":"a7c24d9d-267a-4ff0-b23d-3cf4b7a8c6a5","block_type":"box","text":"developed by Fund management.","page_number":173,"box":{"x":69,"y":718,"width":233,"height":11}},{"id":"3137ea84-b919-42e4-a1be-7e062fd1804c","block_type":"box","text":"A Fund may provide information designed to help investors understand how the Fund is seeking to achieve its","page_number":173,"box":{"x":101,"y":740,"width":780,"height":11}},{"id":"a6ee25e0-cbdb-44d4-864b-bf98c4affe6f","block_type":"box","text":"investment objectives. This may include information about past, current or possible economic, market, political or","page_number":173,"box":{"x":70,"y":755,"width":810,"height":11}},{"id":"2b91c98f-3ced-4fb2-8a60-e4b55e6b254c","block_type":"box","text":"other conditions, descriptive information or general principles of investing such as asset allocation, diversification","page_number":173,"box":{"x":69,"y":770,"width":810,"height":12}},{"id":"b642b0da-f961-4820-bbf4-0f7a87dc261f","block_type":"box","text":"and risk tolerance, discussion of a Fund’s por tfolio composition, investment philosophy, strategy or investment","page_number":173,"box":{"x":69,"y":785,"width":792,"height":12}},{"id":"771ca0ca-daeb-4b68-9593-5ffadd56a3ba","block_type":"box","text":"techniques, comparisons of the Fund’s per formance or por tfolio composition to that of other funds or types of","page_number":173,"box":{"x":68,"y":801,"width":788,"height":11}},{"id":"d0faca66-5804-45d6-b664-833db87a84b2","block_type":"box","text":"investments, indices relevant to the comparison being made, or to a hypothetical or model por tfolio. A Fund may also","page_number":173,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"c80b6ab7-4dca-40a1-8c59-f55f5acc6150","block_type":"box","text":"quote various measures of volatility and benchmark correlation in adver tising and other materials, and may compare","page_number":173,"box":{"x":69,"y":831,"width":830,"height":11}},{"id":"90af9dec-79bb-40d7-a039-db9c7c81d636","block_type":"box","text":"these measures to those of other funds or types of investments.","page_number":173,"box":{"x":68,"y":846,"width":461,"height":11}},{"id":"f1cafb83-bb98-4ded-87d3-e9b71e10209a","block_type":"box","text":"II-138","page_number":173,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"055686ed-b74b-48bb-9ec1-cc9865e37288","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":173,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7bcb94d5-2edc-4fa3-ae5c-3327e957ccf9","block_type":"box","text":"PROXY VOTING POLICIES AND PROCEDURES","page_number":174,"box":{"x":308,"y":45,"width":362,"height":10}},{"id":"a7d0984e-31aa-4a40-baa5-0b869d5fd672","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":174,"box":{"x":101,"y":68,"width":802,"height":11}},{"id":"f60e0e77-678b-4dc9-afc3-f73c60d620bf","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":174,"box":{"x":70,"y":83,"width":809,"height":11}},{"id":"05b9f9c9-91c5-425c-a9ef-07b2e0389121","block_type":"box","text":"Policy”), with respect to cer tain Funds, and (ii) the Index Equity Fund Proxy Voting Policy, with respect to cer tain other","page_number":174,"box":{"x":69,"y":98,"width":833,"height":11}},{"id":"72c09747-37c2-4590-9f42-872b46e70013","block_type":"box","text":"Funds, as applicable. Please refer to Par t I of this SAI, which discloses the policy applicable to each Fund.","page_number":174,"box":{"x":70,"y":113,"width":755,"height":11}},{"id":"7b055a81-0cb8-4b6b-ba81-a712b833d9c3","block_type":"box","text":"With respect to Funds covered by the Active Fund Proxy Voting Policy, the Manager has adopted the BlackRock","page_number":174,"box":{"x":101,"y":136,"width":785,"height":11}},{"id":"a7844643-91d1-4f1f-aa86-357768f55ac0","block_type":"box","text":"Active Investment Stewardship—Global Engagement and Voting Guidelines (the “BAIS Guidelines”). Cer tain of such","page_number":174,"box":{"x":68,"y":151,"width":822,"height":11}},{"id":"5f4f3174-7777-4727-8bd1-589395ba0281","block_type":"box","text":"Funds, as listed within the Active Fund Proxy Voting Policy and as disclosed in Par t I of this SAI, follow supplemental","page_number":174,"box":{"x":70,"y":166,"width":824,"height":11}},{"id":"afe7b77c-5d4e-4dc5-a022-2f81296127b5","block_type":"box","text":"guidelines within the BAIS Guidelines that are applicable to cer tain climate and decarbonization issues (the “BAIS","page_number":174,"box":{"x":68,"y":181,"width":812,"height":12}},{"id":"f2b192b3-26a7-4699-ad23-f1d8a0cc29bb","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines”).","page_number":174,"box":{"x":69,"y":197,"width":392,"height":10}},{"id":"d212da73-0376-4b64-b8a4-b8372fd7f60a","block_type":"box","text":"With respect to Funds covered by the Index Equity Fund Proxy Voting Policy, the Manager has adopted the","page_number":174,"box":{"x":101,"y":219,"width":749,"height":11}},{"id":"19013feb-926a-4014-8a31-3b6ae93d32f5","block_type":"box","text":"BlackRock Investment Stewardship (“BIS”) Global Benchmark Policy, comprised of the Global Principles for","page_number":174,"box":{"x":70,"y":234,"width":759,"height":11}},{"id":"a0d49f97-c716-46f5-b03f-9c732a2e2909","block_type":"box","text":"Benchmark Policies, regional voting guidelines, and engagement priorities, which are each available upon request. In","page_number":174,"box":{"x":70,"y":250,"width":830,"height":11}},{"id":"f4160c59-7497-4709-ab35-71ffa9d48841","block_type":"box","text":"addition, cer tain of such Funds, as listed within the Index Equity Fund Proxy Voting Policy and as disclosed in Par t I of","page_number":174,"box":{"x":69,"y":264,"width":838,"height":12}},{"id":"42620645-c938-4512-ad98-9cdc0aecfb8e","block_type":"box","text":"this SAI, follow supplemental guidelines that are applicable to cer tain climate and decarbonization issues (the “BIS","page_number":174,"box":{"x":68,"y":280,"width":822,"height":11}},{"id":"35cb5d15-ae90-4580-9faf-78ce6ba4810d","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines”).","page_number":174,"box":{"x":69,"y":295,"width":392,"height":11}},{"id":"dd9fed0b-ad93-4e9e-982e-7d815047dbcb","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":174,"box":{"x":102,"y":317,"width":767,"height":12}},{"id":"55638847-04d3-4751-b03b-db6eadce1a31","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":174,"box":{"x":68,"y":332,"width":827,"height":12}},{"id":"10abb072-d951-4161-bf8e-65762c33e301","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":174,"box":{"x":69,"y":348,"width":819,"height":11}},{"id":"89d2bee8-eadf-4252-824f-1598401c874e","block_type":"box","text":"underlying fund may use the Index Equity Fund Proxy Voting Policy, and the opposite is also true.","page_number":174,"box":{"x":69,"y":363,"width":684,"height":11}},{"id":"2bf0e302-dfe8-4036-adac-310be1ac279f","block_type":"box","text":"Copies of the Active Fund Proxy Voting Policy, Index Equity Fund Proxy Voting Policy, the BAIS Guidelines, the","page_number":174,"box":{"x":102,"y":385,"width":766,"height":12}},{"id":"015ab48e-0432-4bb1-8643-00b0a939da23","block_type":"box","text":"Global Principles for Benchmark Policies and the BIS Climate and Decarbonization Stewardship Guidelines are","page_number":174,"box":{"x":69,"y":401,"width":784,"height":11}},{"id":"a0c5538f-0302-4fd2-b6dc-a403a4a28cda","block_type":"box","text":"attached as Appendix B to this SAI. Only those guidelines that are applicable to a par ticular Fund pursuant to the","page_number":174,"box":{"x":69,"y":416,"width":805,"height":11}},{"id":"bd1c98fd-1766-4aeb-81a5-ba6367ea1cfc","block_type":"box","text":"Active Fund Proxy Voting Policy or the Index Equity Fund Proxy Voting Policy are considered to form a par t of the","page_number":174,"box":{"x":68,"y":431,"width":790,"height":11}},{"id":"5f15c3b6-1173-432a-8f1a-963027870f08","block_type":"box","text":"Fund’s SAI. Information on how each Fund voted proxies relating to por tfolio securities during the most recent 12-","page_number":174,"box":{"x":70,"y":446,"width":810,"height":11}},{"id":"4ec24682-1dad-47df-bb62-631bb0738c1d","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":174,"box":{"x":69,"y":461,"width":788,"height":11}},{"id":"3563ee1b-9997-466f-8315-44177ca936e6","block_type":"box","text":"Commission’s website at http://www.sec.gov.","page_number":174,"box":{"x":69,"y":476,"width":327,"height":11}},{"id":"6f46fd93-d3c9-493d-8ce0-5878174c28db","block_type":"box","text":"GENERAL INFORMATION","page_number":174,"box":{"x":391,"y":506,"width":195,"height":9}},{"id":"2a27c356-dca2-4b70-8506-508242dfff87","block_type":"box","text":"Description of Shares","page_number":174,"box":{"x":69,"y":536,"width":156,"height":11}},{"id":"5fbefa3f-9221-4966-9bfc-e58dab3c1049","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":174,"box":{"x":102,"y":559,"width":800,"height":9}},{"id":"11f9aa29-7573-4e9e-b20c-72d486410495","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":174,"box":{"x":69,"y":574,"width":811,"height":11}},{"id":"63733f79-85be-4a70-8ef2-d603363d4422","block_type":"box","text":"Shareholders of a class that bears distribution and/or service expenses have exclusive voting rights with respect to","page_number":174,"box":{"x":69,"y":589,"width":825,"height":11}},{"id":"3203cdf3-84f6-4614-835d-3a0d121533a6","block_type":"box","text":"matters relating to such distribution and service expenditures. Voting rights are not cumulative, so that the holders of","page_number":174,"box":{"x":69,"y":604,"width":838,"height":11}},{"id":"fe7d1bb8-500f-45ed-898b-3ccd099590f7","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":174,"box":{"x":69,"y":619,"width":835,"height":11}},{"id":"12653236-0276-4135-9c47-f87e1471ad8b","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":174,"box":{"x":69,"y":634,"width":781,"height":12}},{"id":"8a178bb8-7448-402c-a6ee-f30c9458ef71","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":174,"box":{"x":102,"y":657,"width":801,"height":11}},{"id":"c875cea7-ac14-4ee5-9db0-3a6e721b0b17","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":174,"box":{"x":69,"y":672,"width":760,"height":11}},{"id":"a1657692-e684-4fa1-bc31-3f2dc217f381","block_type":"box","text":"management agreement; (iii) approval of a distribution agreement; and (iv) ratification of selection of independent","page_number":174,"box":{"x":69,"y":687,"width":810,"height":11}},{"id":"389437cf-7e22-4c91-a105-e300a17a4d59","block_type":"box","text":"accountants. Shares issued are fully paid and non-assessable and have no preemptive rights. Redemption and","page_number":174,"box":{"x":69,"y":702,"width":790,"height":12}},{"id":"f7b43569-6878-47c2-901c-9108c83bf8a1","block_type":"box","text":"conversion rights are discussed elsewhere herein and in each Fund’s Prospectus. Each share of each class of","page_number":174,"box":{"x":69,"y":717,"width":787,"height":12}},{"id":"e1570d27-6b70-48dc-87c1-9cfe7896ed48","block_type":"box","text":"Common Stock is entitled to par ticipate equally in dividends and distributions declared by a Fund and in the net","page_number":174,"box":{"x":69,"y":733,"width":797,"height":11}},{"id":"e2298cce-0ac3-43c7-94de-4240725ba80f","block_type":"box","text":"assets of the Fund upon liquidation or dissolution after satisfaction of outstanding liabilities.","page_number":174,"box":{"x":69,"y":748,"width":658,"height":11}},{"id":"1e76ca15-ce45-461e-b76c-c9ff2c5796a6","block_type":"box","text":"For Funds organized as Maryland corporations, the by-laws of the Fund require that a special meeting of","page_number":174,"box":{"x":102,"y":770,"width":741,"height":12}},{"id":"ac5e3fea-5315-4edf-bb27-13b8f4ffa2c8","block_type":"box","text":"shareholders be held upon the written request of a minimum percentage of the outstanding shares of the Fund","page_number":174,"box":{"x":69,"y":785,"width":790,"height":12}},{"id":"f651d642-5ccb-46dd-a34b-4470eb22643a","block_type":"box","text":"entitled to vote at such meeting, if they comply with applicable Maryland law.","page_number":174,"box":{"x":69,"y":801,"width":546,"height":11}},{"id":"54ed6da9-ced7-433b-b557-4352cb197a96","block_type":"box","text":"Cer tain of the Funds are organized as “Massachusetts business trusts.” Under Massachusetts law,","page_number":174,"box":{"x":102,"y":823,"width":712,"height":12}},{"id":"e197648c-19eb-4e93-8b89-ea7416283b27","block_type":"box","text":"shareholders of such a trust may, under cer tain circumstances, be held personally liable as par tners for its","page_number":174,"box":{"x":69,"y":838,"width":765,"height":11}},{"id":"a45ae7c5-3e3f-484a-9a64-f0d01428e822","block_type":"box","text":"obligations. However, the Declaration of Trust establishing a trust, a copy of which for each applicable Fund, together","page_number":174,"box":{"x":69,"y":853,"width":834,"height":12}},{"id":"962bc236-ca71-4359-9ee3-7d3b5327b747","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":174,"box":{"x":68,"y":869,"width":729,"height":11}},{"id":"97983d16-2539-4305-b3fe-2a93cca7de91","block_type":"box","text":"Commonwealth of Massachusetts, contains an express disclaimer of shareholder liability for acts or obligations of","page_number":174,"box":{"x":69,"y":884,"width":815,"height":11}},{"id":"08873349-0a12-4ffd-9107-407a6502667c","block_type":"box","text":"the trust and provides for indemnification and reimbursement of expenses out of the trust proper ty for any","page_number":174,"box":{"x":68,"y":899,"width":761,"height":11}},{"id":"68ea8e6b-d3d7-4186-8cc0-8f23a3e97019","block_type":"box","text":"II-139","page_number":174,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"aebe2604-f748-46f6-93d7-f7b283935c9b","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":174,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c1806ab9-223b-4d6e-b958-58de0aaed6a6","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":175,"box":{"x":69,"y":45,"width":824,"height":11}},{"id":"7c18ff04-4321-4016-9d9a-698e0e55e826","block_type":"box","text":"may maintain appropriate insurance (for example, fidelity bond and errors and omissions insurance) for the protection","page_number":175,"box":{"x":69,"y":60,"width":839,"height":11}},{"id":"84e141c3-7bbf-4996-9fae-c746e92b5796","block_type":"box","text":"of the trust, its shareholders, trustees, officers, employees and agents covering possible tor t and other liabilities.","page_number":175,"box":{"x":69,"y":75,"width":813,"height":11}},{"id":"0f38815c-987e-4321-9012-b9ef5bc78968","block_type":"box","text":"Thus, the risk of a shareholder incurring financial loss on account of shareholder liability is limited to circumstances","page_number":175,"box":{"x":68,"y":90,"width":827,"height":11}},{"id":"7c469c7f-dc25-48a1-ae10-bed89a243445","block_type":"box","text":"in which both inadequate insurance existed and the trust itself was unable to meet its obligations.","page_number":175,"box":{"x":70,"y":105,"width":699,"height":11}},{"id":"455d9a46-fe49-45db-b8ad-6699a0b129d0","block_type":"box","text":"Cer tain Funds are organized as Delaware statutory trusts.","page_number":175,"box":{"x":102,"y":128,"width":413,"height":11}},{"id":"c04acb52-798b-4cd6-b749-81febd47548f","block_type":"box","text":"Additional Information","page_number":175,"box":{"x":68,"y":158,"width":161,"height":9}},{"id":"9805b781-14c3-499e-98ce-02885d330dd5","block_type":"box","text":"Under a separate agreement, BlackRock has granted cer tain Funds the right to use the “BlackRock” name and","page_number":175,"box":{"x":102,"y":181,"width":789,"height":11}},{"id":"cab6bbcb-a84d-4d05-bcb8-c5a43d731ea6","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":175,"box":{"x":69,"y":196,"width":799,"height":11}},{"id":"0ebd2017-18fa-4c8f-99f6-0eef389b04ab","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":175,"box":{"x":70,"y":211,"width":837,"height":11}},{"id":"de36e112-149b-4a3e-8184-f699f6c33204","block_type":"box","text":"such name to any other company.","page_number":175,"box":{"x":69,"y":226,"width":238,"height":11}},{"id":"cb41dd82-7d10-4a5e-b8a1-9d401f374f3a","block_type":"box","text":"II-140","page_number":175,"box":{"x":468,"y":943,"width":42,"height":9}},{"id":"16e2da01-6864-4d40-90d0-d3601af460a2","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":175,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6e87415e-1e2a-4e26-8b53-787cc0bb2aa9","block_type":"box","text":"APPENDIX A","page_number":176,"box":{"x":438,"y":45,"width":101,"height":10}},{"id":"ccd2dcbb-bd5f-4ae1-acab-f7a0f0c35dbc","block_type":"box","text":"Description of Bond Ratings","page_number":176,"box":{"x":377,"y":68,"width":224,"height":13}},{"id":"1ace9222-d870-44ed-af20-e88a092361e2","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":176,"box":{"x":101,"y":91,"width":743,"height":12}},{"id":"c68a6a59-bb26-4856-b171-ed93aeebac64","block_type":"box","text":"designated as a nationally recognized statistical rating organization (“NRSRO”) by the Securities and Exchange","page_number":176,"box":{"x":69,"y":106,"width":787,"height":12}},{"id":"9efdcd63-d073-413d-80d8-dc9cecc93e99","block_type":"box","text":"Commission (“SEC”). While NRSROs may from time to time revise such ratings, they under take no obligation to do","page_number":176,"box":{"x":69,"y":121,"width":817,"height":12}},{"id":"e412648d-60b0-46ec-8c11-e08ef7b9d11c","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":176,"box":{"x":69,"y":137,"width":837,"height":11}},{"id":"f2a44ecf-6de0-4f53-91dd-d04e24fa5e23","block_type":"box","text":"securities on a par ticular subsequent date.","page_number":176,"box":{"x":69,"y":152,"width":306,"height":11}},{"id":"9e23a398-be3b-4e2c-9ccc-5f8d663a9fd6","block_type":"box","text":"NRSROs may rate specific investments (","page_number":176,"box":{"x":102,"y":174,"width":286,"height":12}},{"id":"4ec38ef7-8e5f-4d74-afc5-3941ead2adb5","block_type":"box","text":"e.g.","page_number":176,"box":{"x":390,"y":176,"width":25,"height":10}},{"id":"0cdb3460-8adf-44cb-b346-be773d1b3f62","block_type":"box","text":", bonds), issuers (","page_number":176,"box":{"x":417,"y":175,"width":128,"height":10}},{"id":"302ce60a-a0a5-4111-b5a7-44e9ee787150","block_type":"box","text":"e.g.","page_number":176,"box":{"x":547,"y":176,"width":25,"height":10}},{"id":"889fef20-dee6-405a-93d0-1188f219b0c6","block_type":"box","text":", corporations, governments and financial","page_number":176,"box":{"x":574,"y":174,"width":293,"height":12}},{"id":"c2144cce-3b3a-4060-90db-493278eed8f5","block_type":"box","text":"institutions) and/or programs (","page_number":176,"box":{"x":70,"y":190,"width":217,"height":11}},{"id":"4d3bac56-878b-46fc-9dab-90160913fa72","block_type":"box","text":"e.g.","page_number":176,"box":{"x":289,"y":191,"width":25,"height":10}},{"id":"8ee17c03-53df-4cbc-9ac4-485f927c344a","block_type":"box","text":", commercial paper programs). However, cer tain types of investments may not be","page_number":176,"box":{"x":317,"y":189,"width":578,"height":12}},{"id":"af8de761-6c3e-492a-8664-8b58cd3673ef","block_type":"box","text":"rated by NRSROs, such as cer tain government/sovereign obligations, US agency securities, commercial paper, time","page_number":176,"box":{"x":69,"y":205,"width":826,"height":11}},{"id":"cfd10d63-a701-490b-a5a9-98cc8caab446","block_type":"box","text":"deposits at financial institutions, and derivative instruments such as credit default swaps. For these types of","page_number":176,"box":{"x":69,"y":220,"width":777,"height":11}},{"id":"46557bc7-2189-426f-bbbe-b5542cd432f9","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":176,"box":{"x":70,"y":235,"width":807,"height":11}},{"id":"f8b6917b-543b-4660-8358-631ce2352e96","block_type":"box","text":"specific investment but has rated the investment’s issuer, program, financial institution or underlying reference","page_number":176,"box":{"x":69,"y":250,"width":791,"height":11}},{"id":"95734e00-0973-4f93-ad2d-64d089ed04d5","block_type":"box","text":"asset, BlackRock Advisors, LLC, BlackRock Fund Advisors or their respective affiliates (“BlackRock”) may consider","page_number":176,"box":{"x":69,"y":265,"width":816,"height":11}},{"id":"c50e3cc6-782e-4ddb-a638-4ddc42392e00","block_type":"box","text":"the investment to have the same NRSRO rating as its issuer, program, financial institution or underlying reference","page_number":176,"box":{"x":68,"y":280,"width":812,"height":12}},{"id":"fa8fcbd6-1ea9-4594-adc6-a4f2631750e3","block_type":"box","text":"asset, as applicable. In the case of municipal securities, where one NRSRO provides multiple ratings for the same","page_number":176,"box":{"x":69,"y":295,"width":815,"height":12}},{"id":"b0ae2660-5a34-49a2-9aef-d1caae10d63b","block_type":"box","text":"security (","page_number":176,"box":{"x":69,"y":311,"width":63,"height":11}},{"id":"fc0615d8-fb78-4576-bd86-aa6b459aa061","block_type":"box","text":"e.g.","page_number":176,"box":{"x":134,"y":312,"width":25,"height":10}},{"id":"287ebe13-fa19-4884-afc7-2f694a34998e","block_type":"box","text":", “underlying,” “insured” and/or “enhanced” ratings), BlackRock may consider the security to have the","page_number":176,"box":{"x":161,"y":311,"width":730,"height":11}},{"id":"a04e8d65-c29d-43d0-bcd2-65d63db163d6","block_type":"box","text":"highest of the multiple ratings.","page_number":176,"box":{"x":69,"y":326,"width":216,"height":11}},{"id":"1a475e6c-c16a-4aee-8709-df74dd214da1","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":176,"box":{"x":102,"y":348,"width":760,"height":12}},{"id":"3ff666ac-6566-4457-a869-ea8f365645c3","block_type":"box","text":"Preliminary prospectuses or term sheets for new issue securities may include an expected rating for the security (as","page_number":176,"box":{"x":69,"y":363,"width":830,"height":12}},{"id":"e252bf1d-20c4-4d97-8b3c-2011183ce6ac","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":176,"box":{"x":69,"y":378,"width":812,"height":12}},{"id":"de6d3728-d145-4a7b-ab4e-39e42bb11545","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":176,"box":{"x":69,"y":394,"width":776,"height":11}},{"id":"bac4a823-b1ef-4d43-a941-7f0ba63c3bda","block_type":"box","text":"attribute an expected rating to the security based on: (i) the expected rating of the security set for th in the","page_number":176,"box":{"x":69,"y":409,"width":756,"height":11}},{"id":"6c138a8c-4e40-4963-880c-41dd08fa4e2f","block_type":"box","text":"preliminary prospectus or term sheet for the security; (ii) the NRSRO’s rating for the issuer of the security set for th in","page_number":176,"box":{"x":70,"y":424,"width":835,"height":11}},{"id":"dab2f550-92ba-4f49-a25e-5cd11f3f3d60","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":176,"box":{"x":68,"y":439,"width":836,"height":11}},{"id":"3230374c-28c7-458d-8a95-3541231d9aac","block_type":"box","text":"a prior issuance having a similar structure or the same sponsor.","page_number":176,"box":{"x":69,"y":454,"width":456,"height":11}},{"id":"ac0805ea-074c-4662-92c3-4cb8f0e728a8","block_type":"box","text":"Where the investment objective of a fund is to track the per formance of an index that includes credit ratings","page_number":176,"box":{"x":101,"y":477,"width":771,"height":11}},{"id":"e63b5f70-49b2-45f8-9dce-755f5b04ab93","block_type":"box","text":"eligibility criteria as par t of its index methodology, the fund may purchase any security within the index, such security","page_number":176,"box":{"x":69,"y":492,"width":832,"height":11}},{"id":"0f38e446-6b66-4f97-a6ea-f62e25a5ded3","block_type":"box","text":"having been determined by the index provider as meeting its credit ratings eligibility criteria. The credit ratings","page_number":176,"box":{"x":69,"y":507,"width":782,"height":11}},{"id":"dd9047a6-3f69-4e06-8fe3-dbb50fce98c8","block_type":"box","text":"practices of an index provider may differ from BlackRock’s practices, as described above. Fur ther, the fund may","page_number":176,"box":{"x":70,"y":522,"width":796,"height":11}},{"id":"97aa7a02-3ce1-4cad-bda2-3ea51037932f","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":176,"box":{"x":70,"y":537,"width":811,"height":12}},{"id":"522812b0-b6bb-4a84-975d-882ef06ddcca","block_type":"box","text":"differs from the credit rating specified in its index methodology in various circumstances, including where a security is","page_number":176,"box":{"x":69,"y":552,"width":840,"height":12}},{"id":"43d5593b-d44a-48eb-a92c-5d5c271355cf","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":176,"box":{"x":69,"y":567,"width":824,"height":12}},{"id":"18882ac1-2209-4e82-8c1e-8013be6fe04b","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":176,"box":{"x":68,"y":583,"width":781,"height":11}},{"id":"23af37f9-7341-48c8-a727-18fcbb2e403a","block_type":"box","text":"Fixed-income securities which are unrated may expose the investor to risks with respect to capacity to pay","page_number":176,"box":{"x":102,"y":606,"width":756,"height":10}},{"id":"5fdcccb6-7e75-4906-883e-8f6c031e92a7","block_type":"box","text":"interest or repay principal which are similar to the risks of lower-rated speculative bonds (although BlackRock may","page_number":176,"box":{"x":70,"y":620,"width":811,"height":12}},{"id":"a4c00fcf-0bac-49c4-86e5-92760cd9d7fa","block_type":"box","text":"deem such unrated securities to be of higher quality). Evaluation of these securities is dependent on BlackRock’s","page_number":176,"box":{"x":69,"y":635,"width":809,"height":12}},{"id":"a9bf9b89-0720-4e85-a12a-1f96e67d8725","block_type":"box","text":"judgment, analysis and experience in the evaluation of such securities.","page_number":176,"box":{"x":67,"y":651,"width":506,"height":11}},{"id":"ac8f940e-d15d-41db-91c0-739b683e74c1","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":176,"box":{"x":102,"y":673,"width":776,"height":12}},{"id":"9daaea59-ff46-493e-9b94-0989dff4cbb1","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":176,"box":{"x":69,"y":688,"width":818,"height":12}},{"id":"ce3c4137-b7c3-474e-a68a-2719369bfba3","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":176,"box":{"x":102,"y":711,"width":799,"height":11}},{"id":"eb5b58c0-6894-4580-9d64-815e8379097b","block_type":"box","text":"Fitch. Other terms used to describe such securities include “lower rated bonds,” “non-investment grade bonds,”","page_number":176,"box":{"x":70,"y":726,"width":798,"height":11}},{"id":"8de18f0b-7f23-4c97-b3f8-d402ef27cb29","block_type":"box","text":"“below investment grade bonds,” and “junk bonds.”","page_number":176,"box":{"x":70,"y":742,"width":368,"height":11}},{"id":"a3406ac3-cd64-471f-9ff7-5f19635a84a3","block_type":"box","text":"The descriptions below relate to general long-term and shor t-term obligations of an issuer.","page_number":176,"box":{"x":101,"y":764,"width":643,"height":11}},{"id":"f72b731e-5ea7-4d74-b13e-eb058ccd1a38","block_type":"box","text":"A Description of Moody’s Investors Service, Inc.’s (“Moody’s”) Global Rating Scales","page_number":176,"box":{"x":68,"y":794,"width":616,"height":11}},{"id":"3ffc1712-4aa8-42d9-b493-d5d1e655af10","block_type":"box","text":"Credit ratings are assigned on Moody’s global long-term and shor t-term rating scales and are forward-looking","page_number":176,"box":{"x":102,"y":817,"width":777,"height":11}},{"id":"d132d154-d308-4863-b0f7-350f31570b67","block_type":"box","text":"opinions of the relative credit risks of financial obligations issued by non-financial corporates, financial institutions,","page_number":176,"box":{"x":69,"y":832,"width":818,"height":11}},{"id":"e5be47c1-606b-4d35-bad2-e57b44588181","block_type":"box","text":"structured finance vehicles, project finance vehicles, and public sector entities. Moody’s defines credit risk as the","page_number":176,"box":{"x":69,"y":847,"width":812,"height":11}},{"id":"59cb6de6-ed23-4199-acc1-15eba49b57d2","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":176,"box":{"x":69,"y":862,"width":812,"height":12}},{"id":"cf9e10ac-749b-429f-8fc2-8aaebb02eda4","block_type":"box","text":"loss in the event of default or impairment. The contractual financial obligations addressed by Moody’s ratings are","page_number":176,"box":{"x":70,"y":877,"width":807,"height":12}},{"id":"de4bdd0d-0a1c-44c4-b8a7-01641a6c1dcb","block_type":"box","text":"those that call for, without regard to enforceability, the payment of an ascer tainable amount, which may vary based","page_number":176,"box":{"x":68,"y":892,"width":821,"height":12}},{"id":"ac79ae42-5fe9-4be4-a2a5-ef55dcf21dc8","block_type":"box","text":"upon standard sources of variation (","page_number":176,"box":{"x":69,"y":908,"width":257,"height":11}},{"id":"a2f09368-4cf4-48a0-ae1c-a8527db70080","block_type":"box","text":"e.g.","page_number":176,"box":{"x":328,"y":909,"width":25,"height":10}},{"id":"d945d715-6682-44f7-b06f-8d244d5ea85b","block_type":"box","text":", floating interest rates), by an ascer tainable date. Moody’s rating addresses","page_number":176,"box":{"x":355,"y":908,"width":548,"height":11}},{"id":"e76f2e55-0b39-453c-9e44-e8cc181da9a4","block_type":"box","text":"A-1","page_number":176,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"791294c6-0f09-4189-984a-0100f02abcf4","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":176,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8e028546-029f-4747-b75e-d1ec1560dc85","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":177,"box":{"x":68,"y":45,"width":821,"height":11}},{"id":"3c46926b-f2bb-4006-9d16-c274423c864a","block_type":"box","text":"not address non-standard sources of variation in the amount of the principal obligation (","page_number":177,"box":{"x":69,"y":60,"width":627,"height":11}},{"id":"7e98ff93-d318-4032-9bf8-25025c13c7d3","block_type":"box","text":"e.g.","page_number":177,"box":{"x":697,"y":61,"width":25,"height":10}},{"id":"0a895e68-fe88-48be-abb2-27465c9d8d76","block_type":"box","text":", equity indexed), absent","page_number":177,"box":{"x":725,"y":60,"width":174,"height":11}},{"id":"16557789-ff1c-4b12-aadb-b5f230d120ce","block_type":"box","text":"an express statement to the contrary in a press release accompanying an initial rating. Long-term ratings are","page_number":177,"box":{"x":69,"y":75,"width":777,"height":11}},{"id":"b76d97db-197b-4e77-b353-5d54e63f4517","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":177,"box":{"x":69,"y":90,"width":771,"height":11}},{"id":"719a463b-4645-4dcd-a738-2685ec57183c","block_type":"box","text":"likelihood of a default or impairment on contractual financial obligations and the expected financial loss suffered in","page_number":177,"box":{"x":70,"y":105,"width":819,"height":11}},{"id":"97da4b57-5650-4993-97e8-b4415286a826","block_type":"box","text":"the event of default or impairment. Shor t-term ratings are assigned for obligations with an original maturity of thir teen","page_number":177,"box":{"x":68,"y":120,"width":840,"height":12}},{"id":"78e3e12e-a787-49c8-ba07-ca18f62d2d20","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":177,"box":{"x":69,"y":135,"width":822,"height":12}},{"id":"352f39f0-69c3-4dad-9b26-aaf6f4bc608e","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":177,"box":{"x":68,"y":150,"width":829,"height":12}},{"id":"0d3642bd-41f4-4be3-8df5-02fba125c836","block_type":"box","text":"and instrument level on both the long-term scale and the shor t-term scale. Typically, ratings are made publicly","page_number":177,"box":{"x":69,"y":166,"width":784,"height":11}},{"id":"5cc91d30-1e51-4723-87b9-aac09b1cb881","block_type":"box","text":"available although private and unpublished ratings may also be assigned.","page_number":177,"box":{"x":69,"y":181,"width":521,"height":11}},{"id":"75351b13-8334-41db-ae4f-c7b46ad9e115","block_type":"box","text":"Moody’s differentiates structured finance ratings from fundamental ratings (","page_number":177,"box":{"x":102,"y":203,"width":542,"height":12}},{"id":"30bfeffe-ef95-4703-909f-8db282268ff0","block_type":"box","text":"i.e.","page_number":177,"box":{"x":646,"y":204,"width":20,"height":8}},{"id":"cadeaa39-3ea2-4ea8-9cf6-6895b346ceb1","block_type":"box","text":", ratings on nonfinancial","page_number":177,"box":{"x":669,"y":203,"width":169,"height":12}},{"id":"a71bf239-b020-4361-b53c-bd2e4be47118","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":177,"box":{"x":69,"y":218,"width":837,"height":12}},{"id":"0a9c36db-fcfd-4269-813b-a03d9e3395d0","block_type":"box","text":"finance ratings. The addition of (sf) to structured finance ratings should eliminate any presumption that such ratings","page_number":177,"box":{"x":68,"y":234,"width":828,"height":11}},{"id":"5d8a074e-a527-4702-b2f4-4495b79ef76d","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":177,"box":{"x":69,"y":249,"width":832,"height":11}},{"id":"c356facb-3295-4510-b98a-bcdf02ea8978","block_type":"box","text":"security ratings indicates that otherwise similarly rated structured finance and fundamental securities may have","page_number":177,"box":{"x":69,"y":264,"width":797,"height":11}},{"id":"bf369a6d-e348-47e0-8911-181a46a197da","block_type":"box","text":"different risk characteristics. Through its current methodologies, however, Moody’s aspires to achieve broad","page_number":177,"box":{"x":69,"y":279,"width":771,"height":11}},{"id":"dee2b276-505e-40b0-9d68-40eebc6b9426","block_type":"box","text":"expected equivalence in structured finance and fundamental rating per formance when measured over a long period","page_number":177,"box":{"x":69,"y":294,"width":821,"height":11}},{"id":"b1a7dea2-abff-44d1-93b7-e4d95c228cca","block_type":"box","text":"of time.","page_number":177,"box":{"x":69,"y":309,"width":53,"height":9}},{"id":"8ecbd20e-7387-4da1-8470-a714345b079a","block_type":"box","text":"Description of Moody’s Global Long-Term Rating Scale","page_number":177,"box":{"x":69,"y":339,"width":395,"height":12}},{"id":"e430daae-57a4-4038-bef1-d32f7d260644","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":177,"box":{"x":68,"y":367,"width":815,"height":11}},{"id":"9840b53f-1c78-4ae5-86f3-d02d68ceee53","block_type":"box","text":"risk.","page_number":177,"box":{"x":197,"y":383,"width":28,"height":8}},{"id":"d1ef1471-1de8-4163-b3ee-d0b98db87503","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":177,"box":{"x":68,"y":402,"width":773,"height":12}},{"id":"ebb933c1-5c38-4c96-8ba3-f3d6588280bd","block_type":"box","text":"A Obligations rated A are judged to be upper-medium grade and are subject to low credit risk.","page_number":177,"box":{"x":68,"y":423,"width":776,"height":11}},{"id":"a414b94d-f59c-4050-b56e-ce6276e3ef46","block_type":"box","text":"Baa Obligations rated Baa are judged to be medium-grade and subject to moderate credit risk and as","page_number":177,"box":{"x":70,"y":443,"width":813,"height":11}},{"id":"f1a46b55-9573-4886-adb6-a4d49892d29d","block_type":"box","text":"such may possess cer tain speculative characteristics.","page_number":177,"box":{"x":196,"y":458,"width":385,"height":11}},{"id":"deb378a7-8d92-4199-8941-cfadf11fa050","block_type":"box","text":"Ba Obligations rated Ba are judged to be speculative and are subject to substantial credit risk.","page_number":177,"box":{"x":70,"y":478,"width":775,"height":11}},{"id":"891c8197-0e73-4aa3-aa6f-16e2543b3c46","block_type":"box","text":"B Obligations rated B are considered speculative and are subject to high credit risk.","page_number":177,"box":{"x":70,"y":498,"width":707,"height":11}},{"id":"9404b173-92b0-449b-a182-ad5072d35587","block_type":"box","text":"Caa Obligations rated Caa are judged to be speculative of poor standing and are subject to very high","page_number":177,"box":{"x":69,"y":518,"width":810,"height":12}},{"id":"c3920e29-51de-42ef-b907-5cacec6ae9a8","block_type":"box","text":"credit risk.","page_number":177,"box":{"x":196,"y":534,"width":74,"height":8}},{"id":"8bd62450-1aa3-49b8-8dca-a653fe410ed0","block_type":"box","text":"Ca Obligations rated Ca are highly speculative and are likely in, or very near, default, with some","page_number":177,"box":{"x":69,"y":554,"width":783,"height":11}},{"id":"82603e61-bda9-480e-840e-a97326e80cc2","block_type":"box","text":"prospect of recovery of principal and interest.","page_number":177,"box":{"x":197,"y":569,"width":322,"height":11}},{"id":"15ef02e6-4cec-4758-b467-888e34e00dda","block_type":"box","text":"C Obligations rated C are the lowest rated and are typically in default, with little prospect for recovery","page_number":177,"box":{"x":69,"y":589,"width":834,"height":11}},{"id":"19b8a40f-9f4a-4f24-8493-3710b033816b","block_type":"box","text":"of principal or interest.","page_number":177,"box":{"x":196,"y":604,"width":160,"height":11}},{"id":"1f204ff8-1292-4830-aca7-913e9468b298","block_type":"box","text":"Note:","page_number":177,"box":{"x":102,"y":624,"width":37,"height":9}},{"id":"c5a0a995-e326-4d7f-b53b-5b17d5090a48","block_type":"box","text":"Moody’s appends numerical modifiers 1, 2, and 3 to each generic rating classification from Aa through","page_number":177,"box":{"x":146,"y":624,"width":731,"height":11}},{"id":"91cfca9f-dd5e-4ad6-9fe0-db17388577fc","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":177,"box":{"x":69,"y":639,"width":831,"height":12}},{"id":"a57a4829-3469-4633-8be4-026298b4afc5","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":177,"box":{"x":70,"y":654,"width":829,"height":12}},{"id":"fb45a9de-7c6a-4ab1-9e67-533fbb4b4d66","block_type":"box","text":"Additionally, a “(hyb)” indicator is appended to all ratings of hybrid securities issued by banks, insurers, finance","page_number":177,"box":{"x":68,"y":669,"width":795,"height":12}},{"id":"9c538bea-7426-4939-8316-98979461f032","block_type":"box","text":"companies, and securities firms.","page_number":177,"box":{"x":69,"y":685,"width":232,"height":11}},{"id":"d8150fcc-c0ef-4894-885a-de4484172d73","block_type":"box","text":"By their terms, hybrid securities allow for the omission of scheduled dividends, interest, or principal payments,","page_number":177,"box":{"x":102,"y":707,"width":787,"height":11}},{"id":"9b3772e1-aac1-4b13-801a-f71caf4ce54d","block_type":"box","text":"which can potentially result in impairment if such an omission occurs. Hybrid securities may also be subject to","page_number":177,"box":{"x":68,"y":722,"width":788,"height":12}},{"id":"163a49b6-75d0-4131-9d07-4003e3f73abf","block_type":"box","text":"contractually allowable write-downs of principal that could result in impairment. Together with the hybrid indicator, the","page_number":177,"box":{"x":69,"y":738,"width":833,"height":11}},{"id":"57bf377a-4765-464f-acf8-11e81de5245a","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":177,"box":{"x":70,"y":753,"width":809,"height":11}},{"id":"4e640f53-9564-49e1-a31a-0955f9e887cb","block_type":"box","text":"that security.","page_number":177,"box":{"x":68,"y":768,"width":91,"height":11}},{"id":"73dff6e8-af60-4ee2-8008-0baf8c8b13dd","block_type":"box","text":"Description of Moody’s Global Short-Term Rating Scale","page_number":177,"box":{"x":69,"y":798,"width":400,"height":11}},{"id":"6e365070-3951-483c-be11-93b5e2e066da","block_type":"box","text":"P-1 Ratings of Prime-1 reflect a superior ability to repay shor t-term obligations.","page_number":177,"box":{"x":69,"y":826,"width":658,"height":11}},{"id":"aaae7c38-632e-4337-832c-99f13c163604","block_type":"box","text":"P-2 Ratings of Prime-2 reflect a strong ability to repay shor t-term obligations.","page_number":177,"box":{"x":69,"y":846,"width":645,"height":11}},{"id":"0eb7b5c3-4283-4682-8db6-eea0271c61f5","block_type":"box","text":"P-3 Ratings of Prime-3 reflect an acceptable ability to repay shor t-term obligations.","page_number":177,"box":{"x":69,"y":866,"width":686,"height":11}},{"id":"aa084e3c-334f-4f2c-8d8a-adba9f4f6c57","block_type":"box","text":"NP Issuers (or suppor ting institutions) rated Not Prime do not fall within any of the Prime rating","page_number":177,"box":{"x":70,"y":886,"width":778,"height":12}},{"id":"8bd0e6d1-f2bc-451e-a06b-01189f2630ca","block_type":"box","text":"categories.","page_number":177,"box":{"x":196,"y":902,"width":77,"height":11}},{"id":"30428ebc-a5cb-46e1-846a-95286ccb601e","block_type":"box","text":"A-2","page_number":177,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"57425ba2-22a8-4453-90bd-6e2795f0e2a6","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":177,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"78e49125-cb8b-44f8-88ec-2db5619b5cb4","block_type":"box","text":"Description of Moody’s U.S. Municipal Short-Term Debt and Demand Obligation Ratings","page_number":178,"box":{"x":69,"y":45,"width":637,"height":11}},{"id":"c103637c-8279-4ca1-8a36-eeee6144a6f6","block_type":"box","text":"Moody’s uses the global shor t-term Prime rating scale for commercial paper issued by U.S. municipalities and","page_number":178,"box":{"x":102,"y":67,"width":784,"height":12}},{"id":"494a7461-ea72-471f-8470-8b5191950b1e","block_type":"box","text":"nonprofits. These commercial paper programs may be backed by external letters of credit or liquidity facilities, or by","page_number":178,"box":{"x":69,"y":82,"width":824,"height":12}},{"id":"de56888a-e168-46ea-9a43-8666d2804a3f","block_type":"box","text":"an issuer’s self-liquidity.","page_number":178,"box":{"x":69,"y":98,"width":170,"height":11}},{"id":"5a11a50b-ca04-4a5b-83b8-58b83fda064d","block_type":"box","text":"For other shor t-term municipal obligations, Moody’s uses one of two other shor t-term rating scales, the","page_number":178,"box":{"x":102,"y":120,"width":736,"height":12}},{"id":"b13dd475-bc05-410f-b077-4b807b5d8038","block_type":"box","text":"Municipal Investment Grade (“MIG”) and Variable Municipal Investment Grade (“VMIG”) scales discussed below.","page_number":178,"box":{"x":70,"y":135,"width":796,"height":11}},{"id":"6ca2e643-1b26-45c6-ace8-2aebad3a18d5","block_type":"box","text":"MIG Ratings","page_number":178,"box":{"x":102,"y":158,"width":85,"height":11}},{"id":"ae29ed87-fe68-4ce6-a2bb-3b13cb9a8af5","block_type":"box","text":"Moody’s uses the MIG scale for U.S. municipal cash flow notes, bond anticipation notes and cer tain other shor t","page_number":178,"box":{"x":102,"y":181,"width":803,"height":11}},{"id":"a30fa9df-5a9a-40ab-b20f-dc4a6f56d322","block_type":"box","text":"term obligations, which typically mature in three years or less. Under cer tain circumstances, Moody’s uses the MIG","page_number":178,"box":{"x":68,"y":196,"width":823,"height":11}},{"id":"d930be6c-9bd0-4376-b605-cb0b636932e6","block_type":"box","text":"scale for bond anticipation notes with maturities of up to five years.","page_number":178,"box":{"x":69,"y":211,"width":480,"height":11}},{"id":"3d75c24d-22d1-4b70-a990-e26df6ec9402","block_type":"box","text":"MIG Scale","page_number":178,"box":{"x":102,"y":234,"width":71,"height":9}},{"id":"43662f88-533a-4a2f-b4cc-75e06891aa27","block_type":"box","text":"MIG 1 This designation denotes superior credit quality. Excellent protection is afforded by established","page_number":178,"box":{"x":70,"y":261,"width":802,"height":12}},{"id":"27d65e68-4664-4bba-b79b-4abb13c93d58","block_type":"box","text":"cash flows, highly reliable liquidity suppor t, or demonstrated broad-based access to the market for","page_number":178,"box":{"x":196,"y":276,"width":703,"height":12}},{"id":"5d5147ff-010a-475f-a8bc-d79ccbd27897","block_type":"box","text":"refinancing.","page_number":178,"box":{"x":197,"y":292,"width":80,"height":11}},{"id":"c604e3f9-85c9-4a11-9832-03fc10c03841","block_type":"box","text":"MIG 2 This designation denotes strong credit quality. Margins of protection are ample, although not as","page_number":178,"box":{"x":70,"y":312,"width":809,"height":11}},{"id":"24a06a13-e6bc-4e45-8c31-0b0744967abb","block_type":"box","text":"large as in the preceding group.","page_number":178,"box":{"x":197,"y":327,"width":224,"height":11}},{"id":"c3404b8f-0c22-45a7-b4b7-aca2fea059e7","block_type":"box","text":"MIG 3 This designation denotes acceptable credit quality. Liquidity and cash-flow protection may be","page_number":178,"box":{"x":70,"y":347,"width":785,"height":11}},{"id":"b21e9074-c306-455c-acd1-0a8b0f7ebb88","block_type":"box","text":"narrow, and market access for refinancing is likely to be less well-established.","page_number":178,"box":{"x":197,"y":362,"width":554,"height":11}},{"id":"477b7a52-45d4-4ada-8692-7ee61c0c13b9","block_type":"box","text":"SG This designation denotes speculative-grade credit quality. Debt instruments in this category may","page_number":178,"box":{"x":69,"y":382,"width":813,"height":12}},{"id":"3d943b8b-03b7-4ff4-ad9e-ecfd10b10477","block_type":"box","text":"lack sufficient margins of protection.","page_number":178,"box":{"x":197,"y":397,"width":259,"height":12}},{"id":"15abec2a-9d24-44b4-9926-8e3af0f58387","block_type":"box","text":"VMIG Ratings","page_number":178,"box":{"x":68,"y":425,"width":100,"height":11}},{"id":"0f6c3e02-6986-4dbd-9ae0-dbad5c0ba458","block_type":"box","text":"In the case of variable rate demand obligations (“VRDOs”), a two-component rating is assigned. The components","page_number":178,"box":{"x":102,"y":448,"width":804,"height":11}},{"id":"8d7d8f83-08be-44ac-b46c-38142a31ced9","block_type":"box","text":"are a long-term rating and a shor t-term payment obligation rating. The long-term rating addresses the issuer’s ability","page_number":178,"box":{"x":69,"y":463,"width":829,"height":11}},{"id":"16b1842b-3116-429f-a6a9-6b1ba3571bd6","block_type":"box","text":"to meet scheduled principal and interest payments. The shor t-term payment obligation rating addresses the ability of","page_number":178,"box":{"x":68,"y":478,"width":836,"height":11}},{"id":"d9e6d849-dbd5-4d50-9cd5-89524632f9ab","block_type":"box","text":"the issuer or the liquidity provider meet any purchase-price payment obligation resulting from optional tenders (“on","page_number":178,"box":{"x":68,"y":493,"width":817,"height":11}},{"id":"57407890-aeb9-4f20-8847-f8ac2f959a31","block_type":"box","text":"demand”) and/or mandatory tenders of the VRDO. The shor t-term demand obligation rating uses the VMIG scale.","page_number":178,"box":{"x":69,"y":508,"width":807,"height":12}},{"id":"6da80475-96de-4fcb-97cb-277b0f86bd48","block_type":"box","text":"VMIG ratings with liquidity suppor t use as an input the shor t-term Counterpar ty Risk Assessment of the suppor t","page_number":178,"box":{"x":68,"y":523,"width":800,"height":12}},{"id":"afe8556a-9856-4b46-830f-0ff6016e67c4","block_type":"box","text":"provider, or the long-term rating of the underlying obligor in the absence of third par ty liquidity suppor t. Transitions of","page_number":178,"box":{"x":70,"y":538,"width":832,"height":12}},{"id":"2044353f-1722-40a7-b892-49457b61205a","block_type":"box","text":"VMIG ratings of demand obligations with conditional liquidity suppor t differ from transitions on the Prime scale to","page_number":178,"box":{"x":68,"y":554,"width":807,"height":11}},{"id":"0d2a73d3-2418-4fbe-b10b-a7c3da0c6f38","block_type":"box","text":"reflect the risk that external liquidity suppor t will terminate if the issuer’s long-term rating drops below investment","page_number":178,"box":{"x":69,"y":569,"width":812,"height":11}},{"id":"d6cc195d-5d44-4f46-8d2a-be0db4776576","block_type":"box","text":"grade.","page_number":178,"box":{"x":68,"y":584,"width":43,"height":11}},{"id":"5d7d7ed7-71c9-4b8d-bfc6-e26d6ef6c94b","block_type":"box","text":"Moody’s typically assigns the VMIG shor t-term demand obligation rating if the frequency of the demand feature is","page_number":178,"box":{"x":102,"y":606,"width":807,"height":12}},{"id":"3417d616-a522-44c5-ad13-62d1ff553091","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":178,"box":{"x":70,"y":622,"width":833,"height":11}},{"id":"379905d8-6ed4-4ea2-b081-2489111307fd","block_type":"box","text":"payable only with remarketing proceeds, the shor t-term demand obligation rating is “NR”.","page_number":178,"box":{"x":70,"y":637,"width":635,"height":11}},{"id":"ecf29634-c20f-411d-8140-7f63eb2f911d","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":178,"box":{"x":102,"y":659,"width":778,"height":12}},{"id":"635b57bd-1454-4cf7-8bde-72464c1eef25","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":178,"box":{"x":70,"y":675,"width":795,"height":11}},{"id":"65e0cdd7-aceb-462b-ba58-202d8b77e6d7","block_type":"box","text":"liquidity of the corporate obligor.","page_number":178,"box":{"x":70,"y":690,"width":226,"height":11}},{"id":"cc1b8b23-3a89-4330-80a5-2a464cba5c1a","block_type":"box","text":"VMIG Scale","page_number":178,"box":{"x":101,"y":712,"width":81,"height":9}},{"id":"cc7b3aaa-ed65-41c4-bd3b-9f809156639f","block_type":"box","text":"VMIG 1 This designation denotes superior credit quality. Excellent protection is afforded by the superior","page_number":178,"box":{"x":68,"y":740,"width":808,"height":11}},{"id":"d1b3920c-c253-4f97-ac38-2e85854f1fe3","block_type":"box","text":"shor t-term credit strength of the liquidity provider and structural and legal protections.","page_number":178,"box":{"x":196,"y":755,"width":613,"height":11}},{"id":"065bc57e-4827-47dc-b44a-fb7d53653127","block_type":"box","text":"VMIG 2 This designation denotes strong credit quality. Good protection is afforded by the strong shor t-term","page_number":178,"box":{"x":68,"y":775,"width":834,"height":12}},{"id":"a8bf1d11-f4f3-4dfd-a4b8-7736875fe5fa","block_type":"box","text":"credit strength of the liquidity provider and structural and legal protections.","page_number":178,"box":{"x":196,"y":790,"width":533,"height":12}},{"id":"0d2c1c01-aee8-4704-9218-3ae3e3b5f2d4","block_type":"box","text":"VMIG 3 This designation denotes acceptable credit quality. Adequate protection is afforded by the","page_number":178,"box":{"x":68,"y":811,"width":768,"height":11}},{"id":"f9588c9a-06c2-4f58-b683-cce425a6f311","block_type":"box","text":"satisfactory shor t-term credit strength of the liquidity provider and structural and legal protections.","page_number":178,"box":{"x":196,"y":826,"width":701,"height":11}},{"id":"fa0eab36-e733-42aa-a314-fee035006371","block_type":"box","text":"SG This designation denotes speculative-grade credit quality. Demand features rated in this category","page_number":178,"box":{"x":69,"y":846,"width":820,"height":11}},{"id":"eea8ca9f-a63b-4491-865a-c7c03fa92426","block_type":"box","text":"may be suppor ted by a liquidity provider that does not have a sufficiently strong shor t-term rating or","page_number":178,"box":{"x":197,"y":861,"width":711,"height":11}},{"id":"0821890b-1329-4906-90c5-a8fbcf768dfe","block_type":"box","text":"may lack the structural or legal protections.","page_number":178,"box":{"x":197,"y":876,"width":308,"height":11}},{"id":"bab0bbd3-d2be-4693-95e9-85d63a963ad3","block_type":"box","text":"A-3","page_number":178,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"759beb4c-dcdd-4d41-b75b-724af47d7c72","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":178,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"45d98730-7718-4ed2-a0b4-b76dc55f460e","block_type":"box","text":"Description of S&P Global Ratings (“S&P”), a Division of S&P Global Inc., Issue Credit Ratings","page_number":179,"box":{"x":69,"y":45,"width":691,"height":11}},{"id":"4ca2e8b1-717a-4f6f-a87e-8f283438e212","block_type":"box","text":"An S&P issue credit rating is a forward-looking opinion about the creditwor thiness of an obligor with respect to a","page_number":179,"box":{"x":101,"y":67,"width":801,"height":12}},{"id":"5a0eb652-3387-4362-b4cd-906dac99fee4","block_type":"box","text":"specific financial obligation, a specific class of financial obligations, or a specific financial program (including ratings","page_number":179,"box":{"x":69,"y":82,"width":829,"height":12}},{"id":"48339240-3527-4adb-8b86-bb28384490f9","block_type":"box","text":"on medium-term note programs and commercial paper programs). It takes into consideration the creditwor thiness of","page_number":179,"box":{"x":69,"y":98,"width":831,"height":11}},{"id":"b674a73d-abe9-4fb2-85b2-4a4cd402bc33","block_type":"box","text":"guarantors, insurers, or other forms of credit enhancement on the obligation and takes into account the currency in","page_number":179,"box":{"x":68,"y":113,"width":823,"height":11}},{"id":"dbf38982-a072-48e2-91d3-d1b739fed4f8","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":179,"box":{"x":68,"y":128,"width":841,"height":11}},{"id":"083bfb6a-2524-4d81-ae40-468c9f82e4bd","block_type":"box","text":"its financial commitments as they come due, and this opinion may assess terms, such as collateral security and","page_number":179,"box":{"x":70,"y":143,"width":801,"height":11}},{"id":"f7ce68ac-bb15-4667-a20d-36bc626821d0","block_type":"box","text":"subordination, which could affect ultimate payment in the event of default.","page_number":179,"box":{"x":69,"y":158,"width":530,"height":11}},{"id":"f71b1fc4-e99d-45a2-b297-bb970160daa5","block_type":"box","text":"Issue credit ratings can be either long-term or shor t-term. Shor t-term issue credit ratings are generally assigned","page_number":179,"box":{"x":102,"y":181,"width":796,"height":11}},{"id":"8d6bf46b-c279-4fa5-a16d-e972287553e7","block_type":"box","text":"to those obligations considered shor t-term in the relevant market, typically with an original maturity of no more than","page_number":179,"box":{"x":68,"y":196,"width":825,"height":11}},{"id":"97b183d0-148c-4a10-a673-1c3af2f89596","block_type":"box","text":"365 days. Shor t-term issue credit ratings are also used to indicate the creditwor thiness of an obligor with respect to","page_number":179,"box":{"x":69,"y":211,"width":832,"height":11}},{"id":"9a989402-df59-45fa-903c-3762ff6c8e82","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":179,"box":{"x":70,"y":226,"width":826,"height":11}},{"id":"84e76446-fe44-47d7-92a2-a54cbdaec981","block_type":"box","text":"an original maturity of greater than 365 days. However, the ratings S&P assigns to cer tain instruments may diverge","page_number":179,"box":{"x":69,"y":241,"width":823,"height":11}},{"id":"bf97de60-1d50-4440-91db-fedfd63cf38d","block_type":"box","text":"from these guidelines based on market practices.","page_number":179,"box":{"x":68,"y":256,"width":354,"height":12}},{"id":"7a7a3c28-494f-49cf-b272-1b56e64ffc0f","block_type":"box","text":"Issue credit ratings are based, in varying degrees, on S&P’s analysis of the following considerations:","page_number":179,"box":{"x":102,"y":279,"width":718,"height":11}},{"id":"bdfd7266-66e0-4b53-9437-d2b1acf6caec","block_type":"box","text":"•","page_number":179,"box":{"x":69,"y":302,"width":6,"height":5}},{"id":"ef5e5e04-8dc2-474c-8800-26be3b540bb3","block_type":"box","text":"The likelihood of payment—the capacity and willingness of the obligor to meet its financial commitments on an","page_number":179,"box":{"x":101,"y":299,"width":790,"height":11}},{"id":"733d26d9-2c05-46c5-b56b-ddea622be6d7","block_type":"box","text":"obligation in accordance with the terms of the obligation;","page_number":179,"box":{"x":102,"y":314,"width":404,"height":12}},{"id":"af4c5a6f-3cad-4305-9cf0-0fa1cad5602e","block_type":"box","text":"•","page_number":179,"box":{"x":69,"y":337,"width":6,"height":5}},{"id":"16e4ad9c-acaa-4ed3-8e1e-fb127040e2bc","block_type":"box","text":"The nature and provisions of the financial obligation, and the promise S&P imputes; and","page_number":179,"box":{"x":101,"y":334,"width":629,"height":12}},{"id":"8fb1aa60-874b-43df-900f-9dff8d5406c2","block_type":"box","text":"•","page_number":179,"box":{"x":69,"y":357,"width":6,"height":5}},{"id":"99b9ae5c-ffce-438c-9dcc-2b821cdafb80","block_type":"box","text":"The protection afforded by, and relative position of, the financial obligation in the event of a bankruptcy,","page_number":179,"box":{"x":101,"y":355,"width":738,"height":11}},{"id":"3820f16f-b534-4d5a-a2d2-72ee83de1731","block_type":"box","text":"reorganization, or other arrangement under the laws of bankruptcy and other laws affecting creditors’ rights.","page_number":179,"box":{"x":102,"y":370,"width":770,"height":11}},{"id":"a19b8ccc-7a60-4ea6-b18b-9467b27daa67","block_type":"box","text":"An issue rating is an assessment of default risk but may incorporate an assessment of relative seniority or","page_number":179,"box":{"x":101,"y":392,"width":763,"height":12}},{"id":"08d70ba0-29f2-4ae9-bbb1-5e3bd271eaa9","block_type":"box","text":"ultimate recovery in the event of default. Junior obligations are typically rated lower than senior obligations, to reflect","page_number":179,"box":{"x":69,"y":407,"width":833,"height":12}},{"id":"55f60789-9afa-470b-b0d6-8638c653768a","block_type":"box","text":"lower priority in bankruptcy, as noted above. (Such differentiation may apply when an entity has both senior and","page_number":179,"box":{"x":70,"y":423,"width":794,"height":11}},{"id":"9e6d0c1b-2a8f-4b07-88ed-458ebfaf9336","block_type":"box","text":"subordinated obligations, secured and unsecured obligations, or operating company and holding company","page_number":179,"box":{"x":69,"y":438,"width":754,"height":11}},{"id":"16041d64-9585-4b74-a5c6-e8901c3a86f2","block_type":"box","text":"obligations.)","page_number":179,"box":{"x":69,"y":453,"width":86,"height":11}},{"id":"99bf4e9c-5094-4d1b-8d74-2511987bbe21","block_type":"box","text":"Long-Term Issue Credit Ratings*","page_number":179,"box":{"x":69,"y":483,"width":236,"height":11}},{"id":"4b1c8eed-49b7-4b09-b13d-c06a16f8e4a1","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":179,"box":{"x":68,"y":511,"width":833,"height":11}},{"id":"2af4c12f-1454-47b9-8767-50e4d1654291","block_type":"box","text":"financial commitments on the obligation is extremely strong.","page_number":179,"box":{"x":196,"y":526,"width":429,"height":11}},{"id":"64313c2e-bed5-4e95-9ada-acb6e11c8534","block_type":"box","text":"AA An obligation rated ‘AA’ differs from the highest-rated obligations only to a small degree. The","page_number":179,"box":{"x":68,"y":546,"width":788,"height":11}},{"id":"025a425a-02cf-4b13-a67d-7bb3cbd63c8a","block_type":"box","text":"obligor’s capacity to meet its financial commitments on the obligation is very strong.","page_number":179,"box":{"x":196,"y":561,"width":602,"height":11}},{"id":"3b625dee-8c41-4958-91ed-7e79a81bd1ea","block_type":"box","text":"A An obligation rated ‘A’ is somewhat more susceptible to the adverse effects of changes in","page_number":179,"box":{"x":68,"y":581,"width":770,"height":12}},{"id":"04b52bd8-fb58-453c-adc1-9ed84fc20f34","block_type":"box","text":"circumstances and economic conditions than obligations in higher-rated categories. However, the","page_number":179,"box":{"x":196,"y":597,"width":692,"height":11}},{"id":"ae7ba8e8-17e7-41ee-af53-f956cdc79408","block_type":"box","text":"obligor’s capacity to meet its financial commitments on the obligation is still strong.","page_number":179,"box":{"x":196,"y":612,"width":598,"height":11}},{"id":"f9a3500e-0e40-41f0-b365-2f97783742d5","block_type":"box","text":"BBB An obligation rated ‘BBB’ exhibits adequate protection parameters. However, adverse economic","page_number":179,"box":{"x":70,"y":632,"width":806,"height":11}},{"id":"7abb1a71-c335-4386-912b-9270fabdf9e5","block_type":"box","text":"conditions or changing circumstances are more likely to weaken the obligor’s capacity to meet its","page_number":179,"box":{"x":196,"y":647,"width":694,"height":11}},{"id":"b38f5462-8720-4858-9a1c-1905588e66f4","block_type":"box","text":"financial commitments on the obligation.","page_number":179,"box":{"x":196,"y":662,"width":289,"height":11}},{"id":"60f64340-0117-48ba-8748-390141a039c5","block_type":"box","text":"BB,","page_number":179,"box":{"x":70,"y":682,"width":22,"height":11}},{"id":"adecd77d-2a35-4ddd-83d0-8848abce5097","block_type":"box","text":"B,","page_number":179,"box":{"x":70,"y":697,"width":12,"height":11}},{"id":"988dbadb-d841-4eca-bc2d-b9aae52ca60f","block_type":"box","text":"CCC,","page_number":179,"box":{"x":69,"y":712,"width":33,"height":11}},{"id":"52126808-43cb-4cd5-a7ab-919413ae85ec","block_type":"box","text":"CC,","page_number":179,"box":{"x":69,"y":728,"width":23,"height":10}},{"id":"5872afca-206f-4a6a-bc0c-62cb2a526809","block_type":"box","text":"and C","page_number":179,"box":{"x":69,"y":743,"width":40,"height":9}},{"id":"a4cbc709-0877-4e7f-8237-624c6213d6cf","block_type":"box","text":"Obligations rated ‘BB’, ‘B’, ‘CCC’, ‘CC’, and ‘C’ are regarded as having significant speculative","page_number":179,"box":{"x":196,"y":682,"width":667,"height":11}},{"id":"2f0a00dd-ddaa-48f1-ab58-602e271cee64","block_type":"box","text":"characteristics. ‘BB’ indicates the least degree of speculation and ‘C’ the highest. While such","page_number":179,"box":{"x":196,"y":697,"width":667,"height":12}},{"id":"d0163340-169c-4927-a128-cd90fd1fc2c2","block_type":"box","text":"obligations will likely have some quality and protective characteristics, these may be outweighed by","page_number":179,"box":{"x":196,"y":713,"width":707,"height":11}},{"id":"04e1a483-5662-40cf-8948-78f6c87f0d6e","block_type":"box","text":"large uncer tainties or major exposure to adverse conditions.","page_number":179,"box":{"x":197,"y":728,"width":428,"height":11}},{"id":"928efe71-fa3c-4af0-9607-226c9e6ea77c","block_type":"box","text":"BB An obligation rated ‘BB’ is less vulnerable to nonpayment than other speculative issues. However, it","page_number":179,"box":{"x":70,"y":763,"width":838,"height":11}},{"id":"42db38db-edd2-43ea-95c9-f9b96f0d867d","block_type":"box","text":"faces major ongoing uncer tainties or exposure to adverse business, financial, or economic","page_number":179,"box":{"x":196,"y":778,"width":646,"height":11}},{"id":"fdb2c2ac-408d-4952-9526-bbe6456002c5","block_type":"box","text":"conditions that could lead to the obligor’s inadequate capacity to meet its financial commitments","page_number":179,"box":{"x":196,"y":793,"width":692,"height":11}},{"id":"c89a76ea-27d8-4933-8b70-8df7cde6a5fd","block_type":"box","text":"on the obligation.","page_number":179,"box":{"x":196,"y":808,"width":122,"height":11}},{"id":"dc0c26bf-ba81-45b0-acc3-98d01d770131","block_type":"box","text":"B An obligation rated ‘B’ is more vulnerable to nonpayment than obligations rated ‘BB’, but the obligor","page_number":179,"box":{"x":70,"y":828,"width":840,"height":12}},{"id":"2ab5a826-dcec-41a8-a3b0-cbd16014d8a3","block_type":"box","text":"currently has the capacity to meet its financial commitments on the obligation. Adverse business,","page_number":179,"box":{"x":196,"y":843,"width":695,"height":12}},{"id":"f21a85e5-4b7b-4beb-826f-8607327c3a13","block_type":"box","text":"financial, or economic conditions will likely impair the obligor’s capacity or willingness to meet its","page_number":179,"box":{"x":196,"y":858,"width":691,"height":12}},{"id":"2bf3155f-e2e3-4d8d-b5f1-e79fcf4d45ae","block_type":"box","text":"financial commitments on the obligation.","page_number":179,"box":{"x":196,"y":874,"width":289,"height":11}},{"id":"6a758ccd-cafc-4a09-9d1e-29a98ea90f91","block_type":"box","text":"A-4","page_number":179,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"e9330203-58df-46f4-9d35-4a4c81d82749","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":179,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"90b8d392-797a-4505-92b3-054179a46ee2","block_type":"box","text":"CCC An obligation rated ‘CCC’ is currently vulnerable to nonpayment and is dependent upon favorable","page_number":180,"box":{"x":69,"y":48,"width":816,"height":12}},{"id":"df16c6f0-a94f-41fe-ade2-23381e585898","block_type":"box","text":"business, financial, and economic conditions for the obligor to meet its financial commitments on","page_number":180,"box":{"x":196,"y":63,"width":695,"height":12}},{"id":"0d636487-74c2-4ce3-aaaf-5c398f446012","block_type":"box","text":"the obligation. In the event of adverse business, financial, or economic conditions, the obligor is","page_number":180,"box":{"x":195,"y":79,"width":687,"height":11}},{"id":"667a285f-39cb-411d-ab48-7a77074c080d","block_type":"box","text":"not likely to have the capacity to meet its financial commitments on the obligation.","page_number":180,"box":{"x":197,"y":94,"width":586,"height":11}},{"id":"c80086a1-f044-4b41-a0e2-52e76c92ff49","block_type":"box","text":"CC An obligation rated ‘CC’ is currently highly vulnerable to nonpayment. The ‘CC’ rating is used when","page_number":180,"box":{"x":69,"y":114,"width":826,"height":11}},{"id":"c8b012a9-188e-415c-b3ea-f10be78c05d5","block_type":"box","text":"a default has not yet occurred but S&P expects default to be a vir tual cer tainty, regardless of the","page_number":180,"box":{"x":196,"y":129,"width":692,"height":11}},{"id":"b02b62ab-766a-4f2d-89d6-b60e59c537fc","block_type":"box","text":"anticipated time to default.","page_number":180,"box":{"x":196,"y":144,"width":191,"height":11}},{"id":"3bdf272e-1f4f-45b2-8435-50e83a142344","block_type":"box","text":"C An obligation rated ‘C’ is currently highly vulnerable to nonpayment, and the obligation is expected","page_number":180,"box":{"x":69,"y":164,"width":826,"height":12}},{"id":"b4d74dbb-144e-4ea5-9e85-5b537ce3a99f","block_type":"box","text":"to have lower relative seniority or lower ultimate recovery compared with obligations that are rated","page_number":180,"box":{"x":195,"y":180,"width":700,"height":11}},{"id":"c1689982-da1d-4fa3-aa6f-4c0d57ccacf2","block_type":"box","text":"higher.","page_number":180,"box":{"x":197,"y":195,"width":45,"height":11}},{"id":"ef58e9b0-af9e-44d4-a26a-52be661503c7","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":180,"box":{"x":70,"y":215,"width":789,"height":11}},{"id":"5e6cecf1-e722-4f90-b670-8ae715879df5","block_type":"box","text":"instruments, the ‘D’ rating category is used when payments on an obligation are not made on the","page_number":180,"box":{"x":197,"y":230,"width":695,"height":11}},{"id":"1c419357-ca18-43c1-9214-af45fea70591","block_type":"box","text":"date due, unless S&P believes that such payments will be made within five business days in the","page_number":180,"box":{"x":196,"y":245,"width":686,"height":11}},{"id":"51007b35-26e0-4ee3-bed1-05b7d5b1ff1e","block_type":"box","text":"absence of a stated grace period or within the earlier of the stated grace period or 30 calendar","page_number":180,"box":{"x":196,"y":260,"width":676,"height":11}},{"id":"3e610116-cd1d-41ed-b16e-2b295fb62aab","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":180,"box":{"x":196,"y":275,"width":708,"height":11}},{"id":"45914130-1775-428b-9233-f2e6ca146e21","block_type":"box","text":"action and where default on an obligation is a vir tual cer tainty, for example due to automatic stay","page_number":180,"box":{"x":196,"y":290,"width":694,"height":12}},{"id":"dc251cb5-2ea2-4f4b-b2ed-aad33cf44d95","block_type":"box","text":"provisions. A rating on an obligation is lowered to ‘D’ if it is subject to a distressed debt","page_number":180,"box":{"x":197,"y":305,"width":626,"height":12}},{"id":"e476f409-dfd5-4ea5-8b11-15c7f44d8ca0","block_type":"box","text":"restructuring.","page_number":180,"box":{"x":197,"y":321,"width":92,"height":11}},{"id":"646e7543-3620-4d0a-a75c-f16eb2db2eb1","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":180,"box":{"x":103,"y":341,"width":756,"height":11}},{"id":"dca417b5-379c-41a3-bf3b-467c1ccbe880","block_type":"box","text":"standing within the rating categories.","page_number":180,"box":{"x":69,"y":356,"width":262,"height":11}},{"id":"e7e68be8-445c-4f7b-bd57-dabb478560a8","block_type":"box","text":"Short-Term Issue Credit Ratings","page_number":180,"box":{"x":68,"y":386,"width":233,"height":11}},{"id":"d610ca37-ce77-4f5f-99d0-1a47cd5c7ff5","block_type":"box","text":"A-1 A shor t-term obligation rated ‘A-1’ is rated in the highest category by S&P. The obligor’s capacity to","page_number":180,"box":{"x":68,"y":414,"width":833,"height":11}},{"id":"b38dc0a9-1957-4b16-b445-d84ba9854eb7","block_type":"box","text":"meet its financial commitments on the obligation is strong. Within this category, cer tain obligations","page_number":180,"box":{"x":197,"y":429,"width":707,"height":11}},{"id":"cb45e452-7c94-414d-98ef-2092fa9ab3fe","block_type":"box","text":"are designated with a plus sign (+). This indicates that the obligor’s capacity to meet its financial","page_number":180,"box":{"x":196,"y":444,"width":691,"height":11}},{"id":"473a97c8-69d4-4e07-98d7-d665c82f32fe","block_type":"box","text":"commitments on these obligations is extremely strong.","page_number":180,"box":{"x":196,"y":459,"width":390,"height":11}},{"id":"860569a2-bc7c-4d59-bfbb-8465e0eacb69","block_type":"box","text":"A-2 A shor t-term obligation rated ‘A-2’ is somewhat more susceptible to the adverse effects of changes","page_number":180,"box":{"x":68,"y":479,"width":837,"height":12}},{"id":"267cff6f-e232-490b-8046-a8e05a18d24c","block_type":"box","text":"in circumstances and economic conditions than obligations in higher rating categories. However,","page_number":180,"box":{"x":197,"y":495,"width":684,"height":11}},{"id":"8f0fbfae-2b3d-497b-835d-bb12ce1f20ba","block_type":"box","text":"the obligor’s capacity to meet its financial commitments on the obligation is satisfactory.","page_number":180,"box":{"x":195,"y":509,"width":634,"height":12}},{"id":"8bb54fc8-da65-48ac-9872-bef68e688250","block_type":"box","text":"A-3 A shor t-term obligation rated ‘A-3’ exhibits adequate protection parameters. However, adverse","page_number":180,"box":{"x":68,"y":530,"width":798,"height":11}},{"id":"b70bc727-f4a9-41f0-9395-be9f7d33c74f","block_type":"box","text":"economic conditions or changing circumstances are more likely to weaken an obligor’s capacity to","page_number":180,"box":{"x":196,"y":545,"width":699,"height":11}},{"id":"c2344d66-6668-4b01-be60-02bb403e6142","block_type":"box","text":"meet its financial commitments on the obligation.","page_number":180,"box":{"x":197,"y":560,"width":351,"height":11}},{"id":"8abd8f80-4b31-4178-850e-801e6eb06b83","block_type":"box","text":"B A shor t-term obligation rated ‘B’ is regarded as vulnerable and has significant speculative","page_number":180,"box":{"x":70,"y":580,"width":765,"height":11}},{"id":"602c0ebd-572a-4fe3-929a-cd0685812029","block_type":"box","text":"characteristics. The obligor currently has the capacity to meet its financial commitments; however,","page_number":180,"box":{"x":196,"y":595,"width":700,"height":11}},{"id":"0a628eb4-22f9-409a-8466-74c4741a5104","block_type":"box","text":"it faces major ongoing uncer tainties that could lead to the obligor’s inadequate capacity to meet its","page_number":180,"box":{"x":197,"y":610,"width":708,"height":12}},{"id":"7f353dd6-8a3b-4c9f-a47f-38809b538e6b","block_type":"box","text":"financial commitments.","page_number":180,"box":{"x":196,"y":625,"width":165,"height":9}},{"id":"466eea3e-2ebf-4b28-a691-626f4c3014e0","block_type":"box","text":"C A shor t-term obligation rated ‘C’ is currently vulnerable to nonpayment and is dependent upon","page_number":180,"box":{"x":69,"y":646,"width":796,"height":11}},{"id":"3d577cb0-4669-45b4-b67d-8bd62f04dfc6","block_type":"box","text":"favorable business, financial, and economic conditions for the obligor to meet its financial","page_number":180,"box":{"x":196,"y":661,"width":641,"height":11}},{"id":"33a8c08e-75f3-47ca-9bd1-302cfa5da2bb","block_type":"box","text":"commitments on the obligation.","page_number":180,"box":{"x":196,"y":676,"width":224,"height":11}},{"id":"22f87138-d5c0-44ce-befa-617ef5da3f6c","block_type":"box","text":"D A shor t-term obligation rated ‘D’ is in default or in breach of an imputed promise. For non-hybrid","page_number":180,"box":{"x":70,"y":696,"width":808,"height":11}},{"id":"f6c08a5d-640e-413f-842b-a91cbe2b605f","block_type":"box","text":"capital instruments, the ‘D’ rating category is used when payments on an obligation are not made","page_number":180,"box":{"x":196,"y":711,"width":698,"height":11}},{"id":"1e6121cb-64a7-479a-81a6-907eb9df871d","block_type":"box","text":"on the date due, unless S&P believes that such payments will be made within any stated grace","page_number":180,"box":{"x":196,"y":726,"width":678,"height":12}},{"id":"32754fee-3270-411e-a463-c853f807b62e","block_type":"box","text":"period. However, any stated grace period longer than five business days will be treated as five","page_number":180,"box":{"x":197,"y":741,"width":669,"height":12}},{"id":"b539c955-4e6d-4dff-a5f9-30ee69e80bc1","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":180,"box":{"x":196,"y":756,"width":707,"height":12}},{"id":"7bad670c-6a48-4daa-88ae-c0dfd5b10975","block_type":"box","text":"of a similar action and where default on an obligation is a vir tual cer tainty, for example due to","page_number":180,"box":{"x":196,"y":772,"width":669,"height":11}},{"id":"a7451a73-0c50-403c-b94a-993afc0fd2de","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":180,"box":{"x":196,"y":787,"width":700,"height":11}},{"id":"357f2c0d-0f88-4634-8067-6d25c6392da7","block_type":"box","text":"debt restructuring.","page_number":180,"box":{"x":196,"y":802,"width":130,"height":11}},{"id":"0a141332-3c48-46b9-99f6-cb49f8ec52d3","block_type":"box","text":"Description of S&P’s Municipal Short-Term Note Ratings","page_number":180,"box":{"x":69,"y":830,"width":411,"height":11}},{"id":"6833b637-dc9b-4215-9a34-71390a55d02d","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":180,"box":{"x":101,"y":852,"width":772,"height":11}},{"id":"f8a0a71f-02a7-4cb2-9707-38697574c64a","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":180,"box":{"x":69,"y":868,"width":823,"height":11}},{"id":"5b78d781-9333-445b-82f1-8116f3fd304c","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":180,"box":{"x":69,"y":882,"width":832,"height":12}},{"id":"e6c0e265-279b-4b48-977c-b8f909df2a08","block_type":"box","text":"assign, S&P’s analysis will review the following considerations:","page_number":180,"box":{"x":69,"y":898,"width":447,"height":11}},{"id":"f23d92e8-6582-4c1f-9326-0065effa568c","block_type":"box","text":"A-5","page_number":180,"box":{"x":477,"y":943,"width":24,"height":9}},{"id":"9b6d1408-e228-4334-9ef7-54d71cc3b4ba","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":180,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"663dcdc8-bc1c-4634-934b-f2c0b91acd0b","block_type":"box","text":"•","page_number":181,"box":{"x":69,"y":48,"width":6,"height":4}},{"id":"058e8e74-f47f-446c-87bc-5918ce73fec7","block_type":"box","text":"Amor tization schedule—the larger the final maturity relative to other maturities, the more likely it will be treated","page_number":181,"box":{"x":101,"y":45,"width":796,"height":11}},{"id":"174566ad-e764-4e87-b6c5-085a0d0897f9","block_type":"box","text":"as a note; and","page_number":181,"box":{"x":102,"y":60,"width":101,"height":10}},{"id":"8105491d-d15f-4360-8e18-237e51df84f9","block_type":"box","text":"•","page_number":181,"box":{"x":69,"y":83,"width":6,"height":4}},{"id":"73ec25c9-8704-43f0-bc0e-80f246f25f95","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":181,"box":{"x":102,"y":80,"width":794,"height":11}},{"id":"23050952-0da5-42c9-91a2-4c3af1d75f9d","block_type":"box","text":"treated as a note.","page_number":181,"box":{"x":101,"y":95,"width":127,"height":9}},{"id":"1c8260d9-1d88-431f-b814-31add9af8de5","block_type":"box","text":"S&P’s municipal shor t-term note rating symbols are as follows:","page_number":181,"box":{"x":102,"y":118,"width":448,"height":11}},{"id":"2eaeed9a-2781-42b8-bed6-792b6d640776","block_type":"box","text":"SP-1 Strong capacity to pay principal and interest. An issue determined to possess a very strong","page_number":181,"box":{"x":69,"y":146,"width":779,"height":11}},{"id":"120c8f47-bf3e-480e-ac15-582d2383ab3b","block_type":"box","text":"capacity to pay debt service is given a plus (+) designation.","page_number":181,"box":{"x":196,"y":161,"width":422,"height":11}},{"id":"d5554d1c-5d07-432e-83e1-51a6b50f8064","block_type":"box","text":"SP-2 Satisfactory capacity to pay principal and interest, with some vulnerability to adverse financial and","page_number":181,"box":{"x":69,"y":181,"width":825,"height":11}},{"id":"11f24e6a-10b8-4b0b-baa5-cc636a049778","block_type":"box","text":"economic changes over the term of the notes.","page_number":181,"box":{"x":196,"y":196,"width":327,"height":11}},{"id":"7f8c51be-b838-484b-884e-995f1bd056bf","block_type":"box","text":"SP-3 Speculative capacity to pay principal and interest.","page_number":181,"box":{"x":69,"y":216,"width":479,"height":11}},{"id":"c58cf52b-2c0c-4c18-9939-4995ae611f9f","block_type":"box","text":"D ‘D’ is assigned upon failure to pay the note when due, completion of a distressed debt","page_number":181,"box":{"x":70,"y":236,"width":745,"height":11}},{"id":"b6b69282-2241-49e9-823d-28ce2e463009","block_type":"box","text":"restructuring, or the filing of a bankruptcy petition or the taking of similar action and where default","page_number":181,"box":{"x":197,"y":251,"width":699,"height":12}},{"id":"e36fbd7c-16c7-4c56-8586-1db0f8afaa47","block_type":"box","text":"on an obligation is a vir tual cer tainty, for example due to automatic stay provisions.","page_number":181,"box":{"x":196,"y":266,"width":594,"height":12}},{"id":"6f5831ae-c3eb-44a2-be76-d7a2a287ff93","block_type":"box","text":"Description of Fitch Ratings’ (“Fitch”) Credit Ratings Scales","page_number":181,"box":{"x":69,"y":294,"width":442,"height":11}},{"id":"2597683f-020e-4c8a-9def-10dbfe2d3122","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":181,"box":{"x":102,"y":317,"width":793,"height":11}},{"id":"6fdb95b0-8d31-4e5c-8ed0-f72ce27cd6f9","block_type":"box","text":"meet financial commitments. Issuer default ratings (IDRs) are assigned to corporations, sovereign entities, financial","page_number":181,"box":{"x":69,"y":332,"width":826,"height":11}},{"id":"1e082edd-ad21-4ae7-9a01-1271540597dd","block_type":"box","text":"institutions such as banks, leasing companies and insurers, and public finance entities (local and regional","page_number":181,"box":{"x":70,"y":347,"width":756,"height":11}},{"id":"cddb77e3-3863-4410-8820-bf58c6fa118f","block_type":"box","text":"governments). Issue level ratings are also assigned, often include an expectation of recovery and may be notched","page_number":181,"box":{"x":68,"y":362,"width":813,"height":11}},{"id":"09e8cfa0-2cde-481a-a333-e7875a167d80","block_type":"box","text":"above or below the issuer level rating. Issue ratings are assigned to secured and unsecured debt securities, loans,","page_number":181,"box":{"x":69,"y":377,"width":819,"height":12}},{"id":"fbe61908-edc0-4095-9105-280e39e99327","block_type":"box","text":"preferred stock and other instruments, Structured finance ratings are issue ratings to securities backed by","page_number":181,"box":{"x":70,"y":392,"width":760,"height":12}},{"id":"ad503bec-4397-4fc3-a011-d180d25a10a6","block_type":"box","text":"receivables or other financial assets that consider the obligations’ relative vulnerability to default.","page_number":181,"box":{"x":69,"y":407,"width":694,"height":12}},{"id":"a93d04e0-31c9-491c-b4ca-5126760d33af","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":181,"box":{"x":102,"y":430,"width":747,"height":11}},{"id":"f6bcdefd-eae9-40c1-b41c-ad97f2469830","block_type":"box","text":"commitments, such as interest, preferred dividends, repayment of principal, insurance claims or counterpar ty","page_number":181,"box":{"x":69,"y":445,"width":782,"height":11}},{"id":"18c55fa6-cfd0-4367-be0e-98f819156b46","block_type":"box","text":"obligations. Credit ratings relating to securities and obligations of an issuer can include a recovery expectation.","page_number":181,"box":{"x":69,"y":460,"width":793,"height":12}},{"id":"131eee44-9ad4-49fe-88ac-4546d2b1e0df","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":181,"box":{"x":69,"y":475,"width":761,"height":12}},{"id":"57cd4bc1-6046-40de-b093-cce5c60c3c06","block_type":"box","text":"accordance with the terms on which they invested. The agency’s credit ratings cover the global spectrum of","page_number":181,"box":{"x":69,"y":491,"width":766,"height":11}},{"id":"e7c925b9-6ee6-4af6-9bb3-70364d01d1ae","block_type":"box","text":"corporate, sovereign financial, bank, insurance, and public finance entities (including supranational and sub-national","page_number":181,"box":{"x":69,"y":506,"width":827,"height":11}},{"id":"2a326d23-7f71-427f-bfae-342196ec9ea5","block_type":"box","text":"entities) and the securities or other obligations they issue, as well as structured finance securities backed by","page_number":181,"box":{"x":69,"y":521,"width":779,"height":11}},{"id":"53bebf2e-efc1-4301-aa14-7144b61b2cf2","block_type":"box","text":"receivables or other financial assets.","page_number":181,"box":{"x":69,"y":536,"width":262,"height":9}},{"id":"892dd414-ac97-414d-b97a-12be67286be0","block_type":"box","text":"The terms “investment grade” and “speculative grade” have established themselves over time as shor thand to","page_number":181,"box":{"x":101,"y":559,"width":794,"height":11}},{"id":"17e5bef0-f80b-49d0-9db3-33b08c97bd67","block_type":"box","text":"describe the categories ‘AAA’ to ‘BBB’ (investment grade) and ‘BB’ to ‘D’ (speculative grade). The terms investment","page_number":181,"box":{"x":69,"y":574,"width":826,"height":11}},{"id":"db38957a-b45a-49e7-8194-164afbb91163","block_type":"box","text":"grade and speculative grade are market conventions and do not imply any recommendation or endorsement of a","page_number":181,"box":{"x":68,"y":589,"width":800,"height":11}},{"id":"acbb43b7-7ceb-4330-be01-799a16a8cf5d","block_type":"box","text":"specific security for investment purposes. Investment grade categories indicate relatively low to moderate credit risk,","page_number":181,"box":{"x":69,"y":604,"width":832,"height":11}},{"id":"9b3ffd51-06b3-4c59-aca4-c41522f8bc24","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":181,"box":{"x":68,"y":619,"width":793,"height":11}},{"id":"c331a7b5-2778-4983-b508-61c92c521fd6","block_type":"box","text":"occurred.","page_number":181,"box":{"x":69,"y":634,"width":65,"height":9}},{"id":"c9a98ea2-d255-4543-803d-195cb48bb630","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":181,"box":{"x":102,"y":657,"width":779,"height":11}},{"id":"41438e49-d4f5-4710-b2c2-a49fa83feabe","block_type":"box","text":"Such issues are also denoted as ‘NR’.","page_number":181,"box":{"x":69,"y":672,"width":274,"height":9}},{"id":"d6982c69-dacf-4455-8cff-e96b37c8a872","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":181,"box":{"x":102,"y":695,"width":797,"height":11}},{"id":"d02d8228-ef43-4c82-82a1-e4fc5efc64cf","block_type":"box","text":"not predictive of a specific frequency of default or loss.","page_number":181,"box":{"x":69,"y":710,"width":391,"height":11}},{"id":"0284ed3d-843d-45b7-84e0-0f3b24768fe6","block_type":"box","text":"Fitch’s credit ratings do not directly address any risk other than credit risk. In par ticular, ratings do not deal with","page_number":181,"box":{"x":102,"y":733,"width":798,"height":11}},{"id":"c288b4cc-075c-4707-a242-b88dd932e8f9","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":181,"box":{"x":68,"y":748,"width":780,"height":11}},{"id":"f1eae575-81f2-4cc4-bac8-4cf14617d818","block_type":"box","text":"considerations. However, in terms of payment obligation on the rated liability, market risk may be considered to the","page_number":181,"box":{"x":69,"y":763,"width":821,"height":11}},{"id":"91f93c6b-7e9b-4b99-9e89-2c1a6ea35ff7","block_type":"box","text":"extent that it influences the ability of an issuer to pay upon a commitment.","page_number":181,"box":{"x":69,"y":778,"width":531,"height":11}},{"id":"61763c58-00f6-455d-8157-dfbb186a3bb9","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":181,"box":{"x":102,"y":801,"width":801,"height":11}},{"id":"ac808815-c71c-45f0-b0a0-7f45859341d4","block_type":"box","text":"the obligation to pay upon a commitment (for example, in the case of index-linked bonds).","page_number":181,"box":{"x":68,"y":816,"width":639,"height":11}},{"id":"3529fe24-11ab-4398-b08f-64576ca40735","block_type":"box","text":"In the default components of ratings assigned to individual obligations or instruments, the agency typically rates","page_number":181,"box":{"x":102,"y":838,"width":799,"height":12}},{"id":"be00c505-6514-4fdb-93ec-2db438a67d6d","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":181,"box":{"x":68,"y":853,"width":794,"height":12}},{"id":"6f1e5fad-9738-470a-a3fb-2da09169a528","block_type":"box","text":"limited cases, Fitch may include additional considerations (","page_number":181,"box":{"x":70,"y":869,"width":420,"height":11}},{"id":"e183e404-9f26-48ff-806f-71ff0195557f","block_type":"box","text":"i.e.","page_number":181,"box":{"x":492,"y":869,"width":20,"height":9}},{"id":"51f63503-5bc8-4296-9ec0-bd58ad486625","block_type":"box","text":"rate to a higher or lower standard than that implied in","page_number":181,"box":{"x":519,"y":869,"width":380,"height":11}},{"id":"2c1b4ebe-dc4f-4e4d-9f3c-d9b4b8832162","block_type":"box","text":"the obligation’s documentation).","page_number":181,"box":{"x":68,"y":884,"width":230,"height":11}},{"id":"b48a8e7c-ce24-409e-9ffc-88647e1f0b89","block_type":"box","text":"A-6","page_number":181,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"3da514a0-4b42-4438-b7a8-81ab976fd846","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":181,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a9496b14-a625-4448-a8eb-ea899660077c","block_type":"box","text":"The primary credit rating scales can be used to provide a rating of privately issued obligations or cer tain note","page_number":182,"box":{"x":101,"y":45,"width":779,"height":11}},{"id":"fd62c37c-ce97-4219-90a3-009ab1f13d6b","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":182,"box":{"x":70,"y":60,"width":835,"height":11}},{"id":"6e45937e-4c50-4107-a596-4a7abe650944","block_type":"box","text":"agents in the form of a rating letter.","page_number":182,"box":{"x":69,"y":75,"width":253,"height":11}},{"id":"4be13d86-967d-494c-9695-9b0e1dbaa732","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":182,"box":{"x":101,"y":98,"width":797,"height":11}},{"id":"1a381da1-55b1-40db-a147-14dcb04c0e21","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":182,"box":{"x":69,"y":113,"width":806,"height":11}},{"id":"4431c28b-04a8-47a3-8eed-87918094efc8","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":182,"box":{"x":69,"y":128,"width":796,"height":11}},{"id":"29b6fb9d-8fba-452f-a679-b0977dc3a036","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":182,"box":{"x":69,"y":143,"width":811,"height":11}},{"id":"86015cc7-2ae9-44dc-b55a-858057866567","block_type":"box","text":"case letter symbol combined with either an ‘*’ (","page_number":182,"box":{"x":69,"y":158,"width":340,"height":11}},{"id":"c1a0086e-e054-4654-a6c1-cfdfe90b957a","block_type":"box","text":"e.g.","page_number":182,"box":{"x":410,"y":160,"width":25,"height":9}},{"id":"c1c81afe-81a4-461f-a9d2-88a8eb839a9e","block_type":"box","text":"‘bbb+*’) or (cat) suffix to denote the opinion status. Credit","page_number":182,"box":{"x":443,"y":158,"width":418,"height":11}},{"id":"3e18cc28-6d5c-4370-996a-b027c0e7ba51","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":182,"box":{"x":69,"y":173,"width":780,"height":11}},{"id":"798b73e4-ed1e-4528-8d06-8f459d6c1854","block_type":"box","text":"sufficiently available. Rating assessment services are a notch-specific view using the primary rating scale of how an","page_number":182,"box":{"x":69,"y":188,"width":827,"height":12}},{"id":"374bc80c-74c1-4706-8f2c-680723fd5dfe","block_type":"box","text":"existing or potential rating may be changed by a given set of hypothetical circumstances. While credit opinions and","page_number":182,"box":{"x":69,"y":203,"width":816,"height":12}},{"id":"146305d3-3e0b-41bf-a6d0-2590882cef09","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":182,"box":{"x":69,"y":219,"width":808,"height":11}},{"id":"a2502722-bdab-43fa-be1c-7aef02c2281b","block_type":"box","text":"assigned, which can signify the trajectory of the credit profile.","page_number":182,"box":{"x":69,"y":234,"width":437,"height":11}},{"id":"0ca372e0-a705-43b7-9b6f-b2449b11b586","block_type":"box","text":"Description of Fitch’s Long-Term Corporate Finance Obligations Rating Scales","page_number":182,"box":{"x":69,"y":264,"width":567,"height":11}},{"id":"0776866e-2833-4f39-b7bb-c1d2e07545f0","block_type":"box","text":"Ratings of individual securities or financial obligations of a corporate issuer address relative vulnerability to","page_number":182,"box":{"x":102,"y":286,"width":763,"height":12}},{"id":"d0f3e2df-2de4-4de8-b1e5-ca68075c7686","block_type":"box","text":"default on an ordinal scale. In addition, for financial obligations in corporate finance, a measure of recovery given","page_number":182,"box":{"x":69,"y":302,"width":807,"height":11}},{"id":"6caebcff-829a-45c4-8340-c3520c9653d8","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":182,"box":{"x":69,"y":317,"width":840,"height":11}},{"id":"9630e773-5008-4ff4-861b-8fe55b834c0d","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":182,"box":{"x":70,"y":332,"width":833,"height":11}},{"id":"276e8d67-3579-4544-a705-6e12336a3aff","block_type":"box","text":"On the contrary, Ratings of debtor-in-possession (“DIP”) obligations incorporate the expectation of full repayment.","page_number":182,"box":{"x":69,"y":347,"width":807,"height":11}},{"id":"efc5a805-350d-4c24-b46b-ea1a149bdaf8","block_type":"box","text":"The relationship between the issuer scale and obligation scale assumes a generic historical average recovery.","page_number":182,"box":{"x":101,"y":370,"width":784,"height":11}},{"id":"fc888332-49bf-4820-96d8-0802285c9fd4","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":182,"box":{"x":70,"y":385,"width":787,"height":11}},{"id":"195966e5-ac0f-4c2f-a2c0-8ceadab0d54c","block_type":"box","text":"default rating (“IDR”), based on their relative ranking, relative vulnerability to default or based on explicit Recovery","page_number":182,"box":{"x":69,"y":400,"width":813,"height":11}},{"id":"32067976-ca37-441b-a3db-2e2db3b2a407","block_type":"box","text":"Ratings.","page_number":182,"box":{"x":70,"y":415,"width":55,"height":11}},{"id":"80d8689a-54d8-4862-9fb4-f376be1a9ac6","block_type":"box","text":"As a result, individual obligations of entities, such as corporations, are assigned ratings higher, lower, or the","page_number":182,"box":{"x":101,"y":438,"width":772,"height":11}},{"id":"de4459f9-39cd-4f11-bad7-5c3318a2ef24","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":182,"box":{"x":69,"y":453,"width":815,"height":11}},{"id":"7e51b0b9-35a2-4422-8f34-774b6d154f1f","block_type":"box","text":"end of the ratings scale, Fitch publishes explicit Recovery Ratings in many cases to complement issuer and","page_number":182,"box":{"x":69,"y":468,"width":766,"height":11}},{"id":"0dda7df5-63f7-40bb-8fc8-1775212104ef","block_type":"box","text":"obligation ratings.","page_number":182,"box":{"x":69,"y":483,"width":125,"height":11}},{"id":"f9c10a61-9226-4f8b-9431-bd6d8b272935","block_type":"box","text":"Fitch long-term obligations rating scales are as follows:","page_number":182,"box":{"x":102,"y":506,"width":390,"height":11}},{"id":"b4dd5025-45b4-44c0-8efe-422bc593047e","block_type":"box","text":"AAA Highest Credit Quality. ‘AAA’ ratings denote the lowest expectation of default risk. They are","page_number":182,"box":{"x":68,"y":533,"width":774,"height":12}},{"id":"af03f26c-15af-48a5-b175-36c9f7d906f5","block_type":"box","text":"assigned only in cases of exceptionally strong capacity for payment of financial commitments. This","page_number":182,"box":{"x":196,"y":549,"width":703,"height":11}},{"id":"68ff8bc1-8f61-4430-ac9a-b3cd7d5861bb","block_type":"box","text":"capacity is highly unlikely to be adversely affected by foreseeable events.","page_number":182,"box":{"x":196,"y":564,"width":521,"height":11}},{"id":"e7d3055c-4eb1-4b35-bc9a-9fbfb25c179d","block_type":"box","text":"AA Very High Credit Quality. ‘AA’ ratings denote expectations of very low default risk. They indicate very","page_number":182,"box":{"x":68,"y":584,"width":838,"height":11}},{"id":"3d9a1aab-63a8-41b0-a3ac-b1fa8eaad85b","block_type":"box","text":"strong capacity for payment of financial commitments. This capacity is not significantly vulnerable","page_number":182,"box":{"x":196,"y":599,"width":694,"height":11}},{"id":"a2f0236a-4ee1-4080-9656-348ed6b7d528","block_type":"box","text":"to foreseeable events.","page_number":182,"box":{"x":195,"y":614,"width":159,"height":9}},{"id":"6e68e14e-28e4-4721-a676-da6b331153ea","block_type":"box","text":"A High Credit Quality. ‘A’ ratings denote expectations of low default risk. The capacity for payment of","page_number":182,"box":{"x":68,"y":634,"width":828,"height":12}},{"id":"e59fee00-257d-412f-932d-d5be1f93b4b3","block_type":"box","text":"financial commitments is considered strong. This capacity may, never theless, be more vulnerable","page_number":182,"box":{"x":196,"y":649,"width":695,"height":12}},{"id":"183b1ad1-ba93-487b-99be-132bc552a03e","block_type":"box","text":"to adverse business or economic conditions than is the case for higher ratings.","page_number":182,"box":{"x":195,"y":664,"width":565,"height":12}},{"id":"bf8879ec-2226-4e8c-87ce-6d20dacd2329","block_type":"box","text":"BBB Good Credit Quality. ‘BBB’ ratings indicate that expectations of default risk are currently low. The","page_number":182,"box":{"x":70,"y":685,"width":814,"height":11}},{"id":"59f98be1-ce56-4205-9c9a-b1c8a9cb2e24","block_type":"box","text":"capacity for payment of financial commitments is considered adequate, but adverse business or","page_number":182,"box":{"x":196,"y":700,"width":686,"height":11}},{"id":"4ccb8fdc-aeb1-4ab3-9dd1-296443fe4d73","block_type":"box","text":"economic conditions are more likely to impair this capacity.","page_number":182,"box":{"x":196,"y":715,"width":420,"height":11}},{"id":"3ef70676-4794-4621-adba-df861803017c","block_type":"box","text":"BB Speculative. ‘BB’ ratings indicate an elevated vulnerability to default risk, par ticularly in the event of","page_number":182,"box":{"x":70,"y":735,"width":839,"height":11}},{"id":"cf3208b5-55f7-48d7-a9ea-bf350ca70b87","block_type":"box","text":"adverse changes in business or economic conditions over time; however, business or financial","page_number":182,"box":{"x":196,"y":750,"width":672,"height":11}},{"id":"9d0e8b61-3074-4a24-8e13-21e0b3901705","block_type":"box","text":"flexibility exists that suppor ts the servicing of financial commitments.","page_number":182,"box":{"x":196,"y":765,"width":495,"height":12}},{"id":"54b6a61b-dd6c-434f-a59d-83baef21e5ce","block_type":"box","text":"B Highly Speculative. ‘B’ ratings indicate that material default risk is present, but a limited margin of","page_number":182,"box":{"x":70,"y":785,"width":828,"height":12}},{"id":"b5e9743d-592c-49fa-884b-cc0d369b77e9","block_type":"box","text":"safety remains. Financial commitments are currently being met; however, capacity for continued","page_number":182,"box":{"x":196,"y":801,"width":682,"height":11}},{"id":"38dc06a6-99f2-47c9-8c99-ba5d7a0e26e5","block_type":"box","text":"payment is vulnerable to deterioration in the business and economic environment.","page_number":182,"box":{"x":197,"y":816,"width":584,"height":11}},{"id":"93607b21-c59e-46ae-bc8c-e15dcef387b3","block_type":"box","text":"CCC Substantial Credit Risk. ‘CCC’ ratings indicate very low margin for safety. Default is a real","page_number":182,"box":{"x":69,"y":836,"width":764,"height":11}},{"id":"5717c531-6bcc-4a8a-b667-ade8fb0d7c95","block_type":"box","text":"possibility.","page_number":182,"box":{"x":197,"y":851,"width":72,"height":11}},{"id":"74a1ebca-14fa-4bf4-87dd-49ea2c84bdf8","block_type":"box","text":"CC Very High Levels of Credit Risk. ‘CC’ ratings indicate default of some kind appears probable.","page_number":182,"box":{"x":69,"y":871,"width":784,"height":11}},{"id":"e4380633-ea6f-484a-92c7-30d43e966b64","block_type":"box","text":"C Exceptionally High Levels of Credit Risk. ‘C’ ratings indicate default or default-like process has","page_number":182,"box":{"x":69,"y":891,"width":798,"height":12}},{"id":"5099143e-6a68-482a-9933-a189fbb7ba37","block_type":"box","text":"begun, or for a closed funding vehicle, payment capacity is irrevocably impaired.","page_number":182,"box":{"x":196,"y":906,"width":569,"height":12}},{"id":"10eb3a54-6f4e-4bfe-8ed8-617dd3f01d92","block_type":"box","text":"A-7","page_number":182,"box":{"x":477,"y":943,"width":23,"height":9}},{"id":"7736a954-b356-4d25-8828-2195a41e7721","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":182,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"67c14d28-4f65-4402-920d-9018dcf68399","block_type":"box","text":"RD Restricted Default. ‘RD’ ratings indicate an issuer that in Fitch’s opinion has experienced an","page_number":183,"box":{"x":70,"y":48,"width":782,"height":12}},{"id":"6454e589-40d9-4249-a3c6-f8609aa6c4db","block_type":"box","text":"uncured payment default or distressed debt exchange on a bond, loan or other material financial","page_number":183,"box":{"x":197,"y":63,"width":686,"height":12}},{"id":"2c61956f-33c9-492f-a3ee-1466f7709755","block_type":"box","text":"obligation, but has not entered into bankruptcy filings, administration, receivership, liquidation, or","page_number":183,"box":{"x":196,"y":79,"width":696,"height":11}},{"id":"85f647d3-1548-41f9-9518-7cf4d247991c","block_type":"box","text":"other formal winding-up procedure, and has not otherwise ceased operating.","page_number":183,"box":{"x":196,"y":94,"width":544,"height":11}},{"id":"8222cf86-fe0b-4bbf-9525-f19512deee5f","block_type":"box","text":"D Default. ‘D’ ratings indicate an issuer that in Fitch’s opinion has entered into bankruptcy filings,","page_number":183,"box":{"x":70,"y":114,"width":807,"height":11}},{"id":"2cfee270-31c4-4f6f-977c-8a2f3ce37af5","block_type":"box","text":"administration, receivership, liquidation or other formal winding-up procedure or that has otherwise","page_number":183,"box":{"x":196,"y":129,"width":705,"height":11}},{"id":"e4d98847-28f8-4d9a-a27a-9a84212ad2b8","block_type":"box","text":"ceased business and debt is still outstanding.","page_number":183,"box":{"x":196,"y":144,"width":328,"height":11}},{"id":"680245ef-4b4a-4862-a824-8761cb10879b","block_type":"box","text":"Within rating categories, Fitch may use modifiers. The modifiers “+” or “-” may be appended to a rating to denote","page_number":183,"box":{"x":101,"y":164,"width":808,"height":12}},{"id":"4a416fa5-58b1-4047-b800-b9d5bddd64b9","block_type":"box","text":"relative status within major rating categories.","page_number":183,"box":{"x":69,"y":180,"width":320,"height":11}},{"id":"d5907283-4e6d-4b17-8a58-f983c268712d","block_type":"box","text":"For example, the rating category ‘AA’ has three notch-specific rating levels (‘AA+’; ‘AA’; ‘AA–’; each a rating","page_number":183,"box":{"x":102,"y":202,"width":761,"height":11}},{"id":"75ae2ffb-8866-41ef-b5cc-e6e79948c670","block_type":"box","text":"level). Such suffixes are not added to ‘AAA’ ratings and ratings below the ‘CCC’ category. For the shor t-term rating","page_number":183,"box":{"x":70,"y":217,"width":813,"height":12}},{"id":"6dd60063-26d9-41dd-8090-0fe15fde6ca2","block_type":"box","text":"category of ‘F1’, a ‘+’ may be appended.","page_number":183,"box":{"x":69,"y":232,"width":289,"height":12}},{"id":"5f2e4cd4-84a7-4a61-924e-4dba6ddd7755","block_type":"box","text":"Description of Fitch’s Short-Term Ratings Assigned to Issuers and Obligations","page_number":183,"box":{"x":69,"y":263,"width":568,"height":11}},{"id":"953da774-dd29-415f-bebd-8cb50af1356e","block_type":"box","text":"A shor t-term issuer or obligation rating is based in all cases on the shor t-term vulnerability to default of the rated","page_number":183,"box":{"x":101,"y":285,"width":806,"height":12}},{"id":"438d0579-edf7-4aa3-9fa9-1a338006681f","block_type":"box","text":"entity and relates to the capacity to meet financial obligations in accordance with the documentation governing the","page_number":183,"box":{"x":69,"y":300,"width":817,"height":12}},{"id":"50c10764-93fe-41c8-953f-0a19e94e8ff3","block_type":"box","text":"relevant obligation. Shor t-term deposit ratings may be adjusted for loss severity. Shor t-term ratings are assigned to","page_number":183,"box":{"x":69,"y":315,"width":822,"height":12}},{"id":"aad1c285-1813-4f5a-9478-e5131ed2c4f8","block_type":"box","text":"obligations whose initial maturity is viewed as “shor t term” based on market convention. Typically, this means up to","page_number":183,"box":{"x":69,"y":331,"width":827,"height":11}},{"id":"e53aceb6-6392-4147-8a19-f30ec991e5f2","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":183,"box":{"x":70,"y":346,"width":808,"height":11}},{"id":"80f352d4-1bd5-4bc0-a2e0-189d7c0d58c9","block_type":"box","text":"finance markets.","page_number":183,"box":{"x":68,"y":361,"width":118,"height":9}},{"id":"79c3b001-40d3-4de7-96eb-817d9fca0690","block_type":"box","text":"Fitch shor t-term ratings are as follows:","page_number":183,"box":{"x":102,"y":383,"width":273,"height":12}},{"id":"fab30151-520a-424b-a94a-01f5c0dcee15","block_type":"box","text":"F1 Highest Shor t-Term Credit Quality. 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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14","page_number":187,"box":{"x":234,"y":330,"width":670,"height":9}},{"id":"c6b4da08-f2fa-4ea2-86e2-88decfd8d33d","block_type":"box","text":"CLIMATE AND DECARBONIZATION INVESTMENT OBJECTIVES","page_number":187,"box":{"x":74,"y":346,"width":448,"height":9}},{"id":"6cdeb50c-702b-4174-900d-0a39dae650ba","block_type":"box","text":". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14","page_number":187,"box":{"x":528,"y":347,"width":376,"height":8}},{"id":"25ea6f62-2ca9-415b-945b-78e601d37b2b","block_type":"box","text":"APPENDIX 1: HOW WE FULFILL AND OVERSEE OUR INVESTMENT STEWARDSHIP RESPONSIBILITIES FOR","page_number":187,"box":{"x":73,"y":363,"width":771,"height":9}},{"id":"1e6dd958-414a-425d-9b9e-89df62c288cc","block_type":"box","text":"NON-INDEX EQUITY INVESTMENT 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with","page_number":188,"box":{"x":69,"y":83,"width":785,"height":11}},{"id":"2850264d-308c-42c8-871d-6e6193e4baf2","block_type":"box","text":"issuers.","page_number":188,"box":{"x":70,"y":98,"width":54,"height":9}},{"id":"07367c8d-0a7e-4840-a4a3-4dd5c1718b58","block_type":"box","text":"1","page_number":188,"box":{"x":131,"y":94,"width":4,"height":4}},{"id":"7f2e0a32-a84a-4176-8815-a093d2240a31","block_type":"box","text":"BAIS works in par tnership with BlackRock’s investment teams, excluding index equity","page_number":188,"box":{"x":141,"y":98,"width":606,"height":11}},{"id":"aee1da7e-0ddd-43ce-a619-c282fde0576c","block_type":"box","text":"2","page_number":188,"box":{"x":747,"y":98,"width":4,"height":4}},{"id":"c46b97a1-b836-4026-8dad-983af3d06fc6","block_type":"box","text":", providing exper tise","page_number":188,"box":{"x":753,"y":98,"width":143,"height":11}},{"id":"8cab6291-66fd-4422-804b-1ceac42ceb9f","block_type":"box","text":"on investment stewardship and engaging with companies alongside and on behalf of those teams when appropriate.","page_number":188,"box":{"x":69,"y":113,"width":828,"height":11}},{"id":"b2e0d71f-061f-44f5-993e-4be613352003","block_type":"box","text":"The team is responsible for establishing voting guidelines for the active equity platform, providing vote","page_number":188,"box":{"x":68,"y":128,"width":729,"height":11}},{"id":"82e11df9-a784-4927-9765-244f99f14873","block_type":"box","text":"recommendations and operationalizing voting decisions. The guidance informs the voting recommendations BAIS","page_number":188,"box":{"x":69,"y":143,"width":803,"height":11}},{"id":"81bcb6d4-c9d2-4d50-b66e-2c6a9460c1a1","block_type":"box","text":"makes to BlackRock’s active por tfolio managers. It applies to active equity holdings in BlackRock’s fundamental","page_number":188,"box":{"x":69,"y":158,"width":800,"height":11}},{"id":"b321f3d2-8278-42da-b09c-bab73486653a","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":188,"box":{"x":69,"y":173,"width":831,"height":11}},{"id":"55ad1d08-4842-4343-b605-bf1d1a38198f","block_type":"box","text":"active fixed income strategies, to the extent those strategies hold voting securities or conduct issuer engagements.","page_number":188,"box":{"x":69,"y":188,"width":823,"height":12}},{"id":"5c7b02f2-8eb4-458d-a281-f7d7e8fbc022","block_type":"box","text":"The guidelines are not prescriptive as active por tfolio managers have discretion as to how they integrate these","page_number":188,"box":{"x":68,"y":203,"width":789,"height":12}},{"id":"00f54d9e-379f-48b1-98b7-58032fa2c4f7","block_type":"box","text":"guidelines within their investment processes in light of their clients’ or funds’ investment objectives. There are","page_number":188,"box":{"x":68,"y":218,"width":788,"height":12}},{"id":"a886e6ff-15d5-4b09-b43b-c94d3b0dd5c1","block_type":"box","text":"separate, independently developed principles and voting policies that are applied to BlackRock’s index equity","page_number":188,"box":{"x":69,"y":234,"width":778,"height":11}},{"id":"62d49069-66a5-4894-9c69-ff161b12d4b2","block_type":"box","text":"investments by a distinct and independent function, BlackRock Investment Stewardship.","page_number":188,"box":{"x":70,"y":249,"width":627,"height":11}},{"id":"53d57fb3-aa1f-4280-b487-c2cbe1f99c14","block_type":"box","text":"1","page_number":188,"box":{"x":69,"y":294,"width":4,"height":4}},{"id":"d11ef39a-154c-4a8d-ae28-c343f54787ac","block_type":"box","text":"This document includes BAIS’ benchmark policy, which covers nearly all active equity holdings in BlackRock’s","page_number":188,"box":{"x":78,"y":293,"width":777,"height":11}},{"id":"fbda637f-a7ba-4d24-9fcf-3c1efc937b34","block_type":"box","text":"fundamental equity, systematic equity and multi-asset solutions strategies. The benchmark policy also may apply to","page_number":188,"box":{"x":68,"y":308,"width":823,"height":11}},{"id":"dc01f1f8-07fc-482a-97f1-35221031736b","block_type":"box","text":"holdings in BlackRock’s index and active fixed income strategies, to the extent those strategies hold voting securities","page_number":188,"box":{"x":69,"y":323,"width":837,"height":12}},{"id":"c6020279-3057-4880-9cdd-b9836503a105","block_type":"box","text":"or conduct issuer engagements. This document also includes BAIS’ decarbonization policy, which covers holdings in","page_number":188,"box":{"x":69,"y":339,"width":824,"height":11}},{"id":"48535c8f-d697-4308-bc30-4147055442c0","block_type":"box","text":"BlackRock active funds that have climate and decarbonization objectives in addition to financial objectives.","page_number":188,"box":{"x":70,"y":354,"width":759,"height":11}},{"id":"705a12e0-f53b-4d03-a9ee-d81d73f943cc","block_type":"box","text":"2","page_number":188,"box":{"x":69,"y":372,"width":4,"height":4}},{"id":"cf368667-b913-4322-9d42-aeb863f4f1f5","block_type":"box","text":"BlackRock segmented active and index equity investment functions, including stewardship, in January 2025 as par t","page_number":188,"box":{"x":79,"y":371,"width":825,"height":11}},{"id":"92b470b6-279c-41b1-a291-aa67d92b107f","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":188,"box":{"x":69,"y":386,"width":830,"height":12}},{"id":"cff06177-2bc6-4ec1-a879-d75eb2646277","block_type":"box","text":"result, there are two stewardship teams, which operate independently of one another and have separate voting","page_number":188,"box":{"x":69,"y":401,"width":792,"height":12}},{"id":"65c777b0-5b0c-4273-b078-d320174ad3c7","block_type":"box","text":"policies.","page_number":188,"box":{"x":70,"y":417,"width":56,"height":11}},{"id":"946d8862-e27e-40af-bd7a-8e92986a51c5","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":188,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"08e14cf5-3ea9-4767-a51a-a717eeb96a30","block_type":"box","text":"Global Engagement and Voting Guidelines | 3","page_number":188,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"4d5d892c-50c1-4db9-8184-574eac324dac","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":188,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"01136616-6183-47af-adf3-cbe4fc9a7e9e","block_type":"box","text":"INTRODUCTION TO BLACKROCK","page_number":189,"box":{"x":372,"y":45,"width":235,"height":9}},{"id":"6d412e14-8a0e-4e78-880f-29bdfc4b48e8","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":189,"box":{"x":102,"y":64,"width":777,"height":11}},{"id":"f6d2d494-f604-430e-88b8-145802faa06e","block_type":"box","text":"belongs to BlackRock’s clients, many of whom make their own asset allocation and por tfolio construction decisions.","page_number":189,"box":{"x":69,"y":78,"width":828,"height":12}},{"id":"385c0a64-242f-458f-8d36-34c9977cdff3","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":189,"box":{"x":68,"y":93,"width":835,"height":11}},{"id":"42e42e37-849c-4692-a38c-cbf1c7420f46","block_type":"box","text":"by understanding clients’ long-term investment objectives and offering choice on how and where they wish to invest","page_number":189,"box":{"x":69,"y":108,"width":823,"height":11}},{"id":"fa1a38e6-e94e-4064-a551-e49b63de1bdf","block_type":"box","text":"their money. BlackRock then helps clients seek the best risk-adjusted returns based on those choices, underpinning","page_number":189,"box":{"x":68,"y":123,"width":830,"height":11}},{"id":"ab92fa6c-84f5-412c-9dc8-3fca68734a39","block_type":"box","text":"this work with research, data and analytics.","page_number":189,"box":{"x":68,"y":138,"width":309,"height":11}},{"id":"f4d93206-5247-40dd-a19b-1f8f3776fb3c","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":189,"box":{"x":101,"y":156,"width":796,"height":12}},{"id":"9cfc3f40-2b4f-4380-a249-06a10d74867b","block_type":"box","text":"stewards of our clients’ assets, we engage with companies to discuss the corporate governance and business","page_number":189,"box":{"x":69,"y":171,"width":787,"height":12}},{"id":"96f40be1-ec4a-49c7-aeaa-88ab0d945eb5","block_type":"box","text":"practices that, in our experience, suppor t companies in delivering durable, risk-adjusted financial returns over time.","page_number":189,"box":{"x":70,"y":186,"width":820,"height":12}},{"id":"1018c50e-920e-4d7f-9893-27905c7663c7","block_type":"box","text":"We are committed to building strong relationships through constructive, ongoing dialogue with the boards and","page_number":189,"box":{"x":68,"y":201,"width":782,"height":11}},{"id":"244ce94e-b27b-469f-9f20-8e3dcb6064d2","block_type":"box","text":"executive management of the companies in which our clients are invested.","page_number":189,"box":{"x":69,"y":216,"width":531,"height":11}},{"id":"7907cb3e-4573-4709-9f43-4b4aa9fbde3c","block_type":"box","text":"ABOUT BLACKROCK ACTIVE INVESTMENT STEWARDSHIP","page_number":189,"box":{"x":277,"y":246,"width":424,"height":9}},{"id":"104215a8-1934-4b5c-b92a-0e1da323ecb0","block_type":"box","text":"BlackRock Active Investment Stewardship (BAIS) is a specialist team within the Por tfolio Management Group and","page_number":189,"box":{"x":102,"y":265,"width":804,"height":11}},{"id":"8b8019d6-91ba-4139-89ac-0bbeeb44a49f","block_type":"box","text":"manages BlackRock’s stewardship engagement and voting on behalf of clients invested in active strategies globally.","page_number":189,"box":{"x":69,"y":280,"width":826,"height":11}},{"id":"6d15f1e1-2376-400f-b9e9-9042aa23fc6a","block_type":"box","text":"BAIS is also responsible for engagement with issuers in index fixed income strategies, where appropriate. Our","page_number":189,"box":{"x":70,"y":295,"width":783,"height":11}},{"id":"cdbed641-ac57-40f2-9310-2544a82b2e67","block_type":"box","text":"activities are informed by these Global Engagement and Voting Guidelines (the “Guidelines”) and insights from active","page_number":189,"box":{"x":69,"y":309,"width":834,"height":12}},{"id":"f806f3e2-3e94-4be3-8984-4c54e40f01a7","block_type":"box","text":"investment analysts and por tfolio managers, with whom we work closely in engaging companies and voting at","page_number":189,"box":{"x":70,"y":324,"width":779,"height":12}},{"id":"1d1023cc-3b09-42ec-b9b1-aca5e213b45f","block_type":"box","text":"shareholder meetings.","page_number":189,"box":{"x":69,"y":339,"width":158,"height":11}},{"id":"7248a4b4-f30b-43f9-b469-0c236aa9ac8c","block_type":"box","text":"Engagement with public companies is the foundation of our approach to stewardship within fundamental active","page_number":189,"box":{"x":102,"y":358,"width":789,"height":11}},{"id":"3f1142e3-4228-4325-80f7-92402cc06380","block_type":"box","text":"investing.","page_number":189,"box":{"x":70,"y":373,"width":65,"height":11}},{"id":"92a059a6-a15a-4f1f-8801-15812107eb22","block_type":"box","text":"3","page_number":189,"box":{"x":137,"y":373,"width":4,"height":5}},{"id":"a18c1711-b65c-4290-85c7-f177422f4967","block_type":"box","text":"Through direct dialogue with company leadership, we seek to understand their businesses and how they","page_number":189,"box":{"x":146,"y":373,"width":744,"height":11}},{"id":"c06d1ae3-80ac-49ee-82aa-9685df85cf8c","block_type":"box","text":"manage risks and oppor tunities to deliver durable, risk-adjusted financial returns. Por tfolio managers and","page_number":189,"box":{"x":69,"y":387,"width":751,"height":12}},{"id":"b73d6a3e-30d5-4d19-a9f9-b2fe4acfde69","block_type":"box","text":"stewardship specialists may engage jointly or independently on material corporate governance matters. Our","page_number":189,"box":{"x":69,"y":402,"width":765,"height":12}},{"id":"9453a268-466b-4dc3-a694-eed5d355ec66","block_type":"box","text":"discussions focus on topics relevant to a company’s success over time, including governance and leadership,","page_number":189,"box":{"x":69,"y":417,"width":782,"height":12}},{"id":"4b05cf13-df13-4f4d-b0ef-cdd1a4daa1ac","block_type":"box","text":"corporate strategy, capital structure and financial per formance, operations and material sustainability-related risks,","page_number":189,"box":{"x":69,"y":432,"width":820,"height":11}},{"id":"19dc54fd-0f30-440d-9bfc-ed53fb3712e8","block_type":"box","text":"as well as macro-economic, geopolitical and sector dynamics. We aim to be constructive investors and are generally","page_number":189,"box":{"x":69,"y":447,"width":828,"height":11}},{"id":"63cba077-da31-432a-ab1f-9dd4cbdb6adb","block_type":"box","text":"suppor tive of management teams that have a track record of financial value creation. We aim to build and maintain","page_number":189,"box":{"x":69,"y":462,"width":821,"height":11}},{"id":"1391b8c0-6794-4bea-a134-10fb64bd9d48","block_type":"box","text":"strong relationships with company leadership based on open dialogue and mutual respect.","page_number":189,"box":{"x":69,"y":477,"width":645,"height":11}},{"id":"831fdfbd-fc58-49dd-8311-797f07e2cca2","block_type":"box","text":"Different active equity strategies may implement these voting guidelines differently, as a result of the latitude","page_number":189,"box":{"x":102,"y":495,"width":780,"height":12}},{"id":"3ad39b71-126f-423d-adb1-843200171958","block_type":"box","text":"each por tfolio manager has to make independent voting decisions on their holdings. For example, BAIS will generally","page_number":189,"box":{"x":69,"y":510,"width":831,"height":11}},{"id":"e0e7f640-fa3d-467e-a8e4-fd2fe3e188c4","block_type":"box","text":"vote the holdings in Systematic Active Equity por tfolios in accordance with these guidelines. We provide voting","page_number":189,"box":{"x":68,"y":525,"width":787,"height":11}},{"id":"9684f6e2-0178-4769-9091-a29c1e9c1e3c","block_type":"box","text":"recommendations to fundamental equity por tfolio managers, who may determine to vote differently based on each","page_number":189,"box":{"x":69,"y":540,"width":816,"height":11}},{"id":"5b1f821a-35a8-4173-863a-28ab97ccccc4","block_type":"box","text":"por tfolio’s investment objectives and strategy.","page_number":189,"box":{"x":70,"y":555,"width":327,"height":11}},{"id":"029fce21-e92e-4087-a67f-80ec20755f14","block_type":"box","text":"These guidelines discuss BAIS’ views on corporate governance topics on which we may engage with","page_number":189,"box":{"x":101,"y":574,"width":711,"height":11}},{"id":"b0460da4-102c-421c-b5dd-488e6ef0aa28","block_type":"box","text":"management teams and board directors","page_number":189,"box":{"x":69,"y":589,"width":285,"height":11}},{"id":"180ad843-096e-4685-b123-8d72eb0949a2","block_type":"box","text":"4","page_number":189,"box":{"x":355,"y":589,"width":5,"height":4}},{"id":"cb818f29-ea27-48b5-9a85-0de9362880fc","block_type":"box","text":"and on matters that routinely come to a shareholder vote. We recognize that","page_number":189,"box":{"x":366,"y":589,"width":544,"height":11}},{"id":"c5ce0eb7-9df7-4bd8-b1e7-53a05e5249ba","block_type":"box","text":"accepted corporate governance norms can differ across markets, and believe these guidelines represent globally","page_number":189,"box":{"x":69,"y":603,"width":807,"height":11}},{"id":"8cd53593-c792-443a-921f-bfa551fd89ce","block_type":"box","text":"applicable elements of governance that suppor t a company’s ability to manage material risks and oppor tunities and","page_number":189,"box":{"x":69,"y":618,"width":827,"height":11}},{"id":"541090d7-a929-4715-8ca8-bb4e6bf8a444","block_type":"box","text":"deliver financial returns to investors. Generally, we believe companies should observe accepted corporate governance","page_number":189,"box":{"x":69,"y":633,"width":840,"height":11}},{"id":"2e36de39-9fd0-4d01-a554-13e096f9087d","block_type":"box","text":"norms within their local markets or, par ticularly in markets without well-established norms, aspire to widely","page_number":189,"box":{"x":69,"y":648,"width":762,"height":11}},{"id":"b6f233f0-a4d6-4c90-b2c9-d49fe204cf4f","block_type":"box","text":"recognized international best practices. As one of many minority shareholders, BlackRock cannot – and does not try","page_number":189,"box":{"x":69,"y":663,"width":827,"height":11}},{"id":"1b4cb5d7-fd05-4489-a413-29621590c38b","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":189,"box":{"x":68,"y":678,"width":837,"height":11}},{"id":"ddd2bc8f-a340-4e50-9fff-bafc72336fe6","block_type":"box","text":"their approach to corporate governance best aligns with the financial interests of their investors.","page_number":189,"box":{"x":68,"y":692,"width":687,"height":12}},{"id":"7de4026a-86b3-4f4c-bd0b-b39273039238","block_type":"box","text":"OUR APPROACH TO STEWARDSHIP WITHIN ACTIVE EQUITIES","page_number":189,"box":{"x":263,"y":722,"width":451,"height":11}},{"id":"66bdd51b-c7bd-40ff-9a68-298a5de7a198","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":189,"box":{"x":101,"y":741,"width":753,"height":12}},{"id":"afb03caf-7cb6-45db-bb35-b3d1e4ac3443","block_type":"box","text":"governance. The voting rights attached to clients’ holdings are an impor tant mechanism for investors to express","page_number":189,"box":{"x":68,"y":756,"width":801,"height":11}},{"id":"32371d11-ea1e-4106-bc09-3c9e98707580","block_type":"box","text":"suppor t for, or concern about, a company’s per formance. As a fiduciary, BlackRock is legally required to make proxy","page_number":189,"box":{"x":69,"y":771,"width":829,"height":11}},{"id":"09afd15a-d5f7-4014-956e-703cecb36b85","block_type":"box","text":"voting determinations, on behalf of clients who have delegated voting authority to us, in a manner consistent with","page_number":189,"box":{"x":68,"y":786,"width":809,"height":11}},{"id":"cfc51949-6fbe-413c-b92e-cae52af7d7c0","block_type":"box","text":"BlackRock’s contractual arrangements with clients and funds.","page_number":189,"box":{"x":70,"y":801,"width":438,"height":11}},{"id":"ec128ecc-99f7-4bc9-b5a4-1b7145dc4da6","block_type":"box","text":"3","page_number":189,"box":{"x":69,"y":830,"width":4,"height":5}},{"id":"2e527a50-161b-47a1-b07e-8a2b4d1b24e5","block_type":"box","text":"On February 11, 2025, the U.S. Securities and Exchange Commission (SEC) staff issued updated guidance for","page_number":189,"box":{"x":79,"y":830,"width":790,"height":11}},{"id":"ca99484d-4de1-4d4e-af56-6fc43affd728","block_type":"box","text":"shareholders to maintain their eligibility to repor t their beneficial ownership under Schedule 13G of the Exchange Act.","page_number":189,"box":{"x":69,"y":845,"width":836,"height":11}},{"id":"c5466c6b-0f0f-4517-aac1-df9abfd284cd","block_type":"box","text":"We comply fully with these requirements and do not engage with por tfolio companies for the purpose, or with the","page_number":189,"box":{"x":68,"y":860,"width":805,"height":11}},{"id":"06d88dba-250d-463d-b30b-6af477eecf77","block_type":"box","text":"effect, of changing or influencing control of the company.","page_number":189,"box":{"x":69,"y":875,"width":403,"height":12}},{"id":"a130672e-1058-48e5-b297-618d41206fa4","block_type":"box","text":"4","page_number":189,"box":{"x":69,"y":893,"width":4,"height":5}},{"id":"4f131125-1e89-41a3-b2d0-45498f11583d","block_type":"box","text":"References to the board, board directors or non-executive directors should be understood to include supervisory","page_number":189,"box":{"x":79,"y":893,"width":801,"height":11}},{"id":"f15c1ed4-decc-4feb-a86e-dd58333c91af","block_type":"box","text":"boards and their members, where relevant.","page_number":189,"box":{"x":69,"y":908,"width":306,"height":11}},{"id":"f835e1a0-7f64-47a8-8a77-7963a16fccf8","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":189,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"314e2578-40bb-4cd8-8dff-f9c0fd526604","block_type":"box","text":"Global Engagement and Voting Guidelines | 4","page_number":189,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"0ccc1b74-6076-429e-9531-9da8a0f56256","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":189,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0944ed27-733b-4547-93bd-7b8d1686552d","block_type":"box","text":"In general, we tend to suppor t the recommendations of the board of directors and management. As indicated","page_number":190,"box":{"x":102,"y":45,"width":778,"height":11}},{"id":"aa625f49-c82d-4f10-bc16-5178018c1697","block_type":"box","text":"below, we may vote against management recommendations when we have concerns about how companies are","page_number":190,"box":{"x":69,"y":60,"width":788,"height":11}},{"id":"045b70a0-8ea9-442e-8d6b-9f153946a817","block_type":"box","text":"serving the financial interests of our clients as their shareholders. BAIS takes a globally consistent approach to","page_number":190,"box":{"x":69,"y":74,"width":795,"height":12}},{"id":"52b9476e-00a9-45b5-bda0-b3a47bade9f7","block_type":"box","text":"voting but considers the different corporate governance regulations and norms across markets. Votes are determined","page_number":190,"box":{"x":68,"y":89,"width":839,"height":12}},{"id":"fc813a27-796b-488f-b1ef-fa8c5de67d64","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":190,"box":{"x":69,"y":104,"width":823,"height":11}},{"id":"3e1cc574-3bb1-4004-bbb7-a01c5ba9ff09","block_type":"box","text":"Please see page 19 for more information about how we fulfill and oversee our investment stewardship","page_number":190,"box":{"x":69,"y":119,"width":729,"height":11}},{"id":"46addb5d-54e8-45e8-9322-0198af570921","block_type":"box","text":"responsibilities for BlackRock’s non-index equity strategies.","page_number":190,"box":{"x":69,"y":134,"width":423,"height":11}},{"id":"a201f550-84f0-4a1a-883a-d6ad350cad92","block_type":"box","text":"5","page_number":190,"box":{"x":493,"y":134,"width":5,"height":5}},{"id":"1fec9cd8-ac88-4684-a014-70992e838ef4","block_type":"box","text":"OUR APPROACH TO STEWARDSHIP WITHIN FIXED INCOME","page_number":190,"box":{"x":272,"y":164,"width":434,"height":9}},{"id":"6335588e-36d9-49ae-964d-7a74e7585938","block_type":"box","text":"Although fixed income investors do not have the right to vote at shareholder meetings, issuer engagement is a","page_number":190,"box":{"x":101,"y":183,"width":788,"height":11}},{"id":"1e4a88b5-a8f5-408d-8d20-3d7781462018","block_type":"box","text":"component of fixed income investment strategies at BlackRock, par ticularly for those with sustainability objectives in","page_number":190,"box":{"x":69,"y":198,"width":831,"height":11}},{"id":"19ab91b3-06ad-4557-9de4-c6e096ac2b10","block_type":"box","text":"addition to financial objectives. Most corporate governance-related fixed income engagements are under taken in","page_number":190,"box":{"x":69,"y":212,"width":801,"height":12}},{"id":"671e37cc-86f7-43ff-b103-6ef5a460c2ce","block_type":"box","text":"conjunction with the active investment stewardship team, and often active equity investors. In addition to the topics","page_number":190,"box":{"x":69,"y":227,"width":824,"height":11}},{"id":"833da642-d4b9-4057-99b0-12adf9baf271","block_type":"box","text":"listed below, engagement with fixed income investment teams may help inform an issuer’s approach to structuring","page_number":190,"box":{"x":70,"y":242,"width":816,"height":11}},{"id":"f7f63434-ecec-440e-868a-039e3fd8e07e","block_type":"box","text":"specialist issuances and the standard terms and information in bond documentation.","page_number":190,"box":{"x":69,"y":257,"width":608,"height":11}},{"id":"e5b840eb-688f-401b-83c2-cddcf8f68967","block_type":"box","text":"5","page_number":190,"box":{"x":69,"y":302,"width":4,"height":4}},{"id":"7cf08e19-bbe4-4afc-bf02-5534221ebc97","block_type":"box","text":"Non-index equity strategies include active equity holdings in BlackRock’s fundamental equity, systematic equity and","page_number":190,"box":{"x":79,"y":301,"width":820,"height":11}},{"id":"63d4d891-5b44-4ed3-907a-84a46ae752ad","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":190,"box":{"x":69,"y":316,"width":822,"height":12}},{"id":"6361556e-30c0-4a43-94ff-86e5f7e991d1","block_type":"box","text":"extent those strategies hold voting securities or conduct issuer engagements.","page_number":190,"box":{"x":69,"y":332,"width":554,"height":11}},{"id":"102c7701-c2c5-4ce5-9632-a3c40b65b402","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":190,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"de7174e8-28c0-4b43-ac3a-7053debf183e","block_type":"box","text":"Global Engagement and Voting Guidelines | 5","page_number":190,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"46cffc19-4ddf-4083-923d-fb01c5e8fd25","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":190,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"51d2d886-0daf-41a0-8fcf-77cbe33da713","block_type":"box","text":"BOARDS OF DIRECTORS","page_number":191,"box":{"x":400,"y":45,"width":178,"height":9}},{"id":"6af60603-62d4-4767-ad74-624fb3a3ebb7","block_type":"box","text":"Roles and responsibilities","page_number":191,"box":{"x":69,"y":67,"width":186,"height":11}},{"id":"c1657c33-78cc-4e4e-ad9e-f3205be272cb","block_type":"box","text":"There is widespread consensus that the foundation of good corporate governance is an effective board of","page_number":191,"box":{"x":101,"y":86,"width":754,"height":11}},{"id":"341dbfd4-6aac-4954-adbc-e42677c4e8a7","block_type":"box","text":"directors that is able to advise and supervise management in an independent and objective manner.","page_number":191,"box":{"x":69,"y":101,"width":715,"height":11}},{"id":"58e10015-28bb-4f8a-864d-31851e284932","block_type":"box","text":"6","page_number":191,"box":{"x":786,"y":101,"width":4,"height":5}},{"id":"19eddfed-82e2-4d85-81b4-a2adc29267e6","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":191,"box":{"x":101,"y":119,"width":765,"height":12}},{"id":"8e377814-2506-487d-a18b-838e5d6fabd2","block_type":"box","text":"realization of a company’s strategy, purpose and culture. These constructs are interdependent and, when aligned,","page_number":191,"box":{"x":69,"y":134,"width":811,"height":12}},{"id":"a008a99c-16b7-4abd-aa41-2d86b9f5c242","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":191,"box":{"x":69,"y":149,"width":822,"height":11}},{"id":"0594d80d-12e1-4d90-a4b0-9574afaa3467","block_type":"box","text":"of corporate or employee misconduct, and attract and retain the caliber of workers necessary to deliver financial","page_number":191,"box":{"x":69,"y":164,"width":799,"height":11}},{"id":"45236715-2ff6-4942-ac24-befc57e6e93b","block_type":"box","text":"per formance over time.","page_number":191,"box":{"x":70,"y":179,"width":164,"height":11}},{"id":"8e95840e-91f2-4b23-8398-30bd01edd219","block_type":"box","text":"In overseeing the management of the company, the board ensures the necessary resources, policies and","page_number":191,"box":{"x":102,"y":198,"width":750,"height":11}},{"id":"ccde2d1b-c94e-4112-8820-f85709a9fd1e","block_type":"box","text":"procedures are in place to help management meet its strategic objectives within an agreed risk tolerance.","page_number":191,"box":{"x":70,"y":213,"width":753,"height":11}},{"id":"14e90955-a54a-4406-9151-ff0aa77008cb","block_type":"box","text":"One of the most impor tant responsibilities of the board is to appoint, and remove as necessary, the chief","page_number":191,"box":{"x":102,"y":231,"width":753,"height":11}},{"id":"0745ec2b-cdb1-49d1-bd69-75af95bf9e3f","block_type":"box","text":"executive officer (“CEO”). In addition, the board plays a meaningful role in monitoring the per formance of the CEO","page_number":191,"box":{"x":69,"y":246,"width":811,"height":11}},{"id":"5eb3017e-0229-4bbe-821d-c4fa85e42e95","block_type":"box","text":"and other key executives, determining executive compensation, ensuring a rigorous audit, overseeing strategy","page_number":191,"box":{"x":69,"y":261,"width":783,"height":11}},{"id":"2dac63b5-7cb8-4183-ba52-e19eb1127a44","block_type":"box","text":"execution and risk management and engaging with shareholders, and other stakeholders, as necessary.","page_number":191,"box":{"x":69,"y":276,"width":742,"height":11}},{"id":"8992ae66-8422-4aab-b0ec-7cb07ef92908","block_type":"box","text":"Composition and effectiveness","page_number":191,"box":{"x":69,"y":298,"width":224,"height":11}},{"id":"42170c58-54f9-44be-b7c4-6f06d4ced8d6","block_type":"box","text":"Appointment process","page_number":191,"box":{"x":68,"y":317,"width":152,"height":11}},{"id":"21016a8c-2fc5-4a06-9540-823c2f216554","block_type":"box","text":"A formal and transparent process for identifying and appointing director candidates is critical to ensuring the","page_number":191,"box":{"x":101,"y":335,"width":773,"height":12}},{"id":"c973a4ef-5e50-4ce7-9de8-9085e73712b3","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":191,"box":{"x":69,"y":350,"width":792,"height":11}},{"id":"47aa0e7d-caab-46ed-934d-4d3f160ce87e","block_type":"box","text":"committee determines the general criteria given the company’s circumstances (","page_number":191,"box":{"x":69,"y":365,"width":568,"height":11}},{"id":"dd0db326-402d-4d19-a435-d67f7b4bcd2d","block_type":"box","text":"e.g.","page_number":191,"box":{"x":638,"y":367,"width":25,"height":9}},{"id":"a3ccd32e-6769-4f4b-b0e5-19a6ed72ca46","block_type":"box","text":", sector, maturity, geographic","page_number":191,"box":{"x":666,"y":365,"width":204,"height":11}},{"id":"71d52a28-88dd-47eb-bdc5-e79309f00da9","block_type":"box","text":"footprint) and any additional criteria for a specific role being filled (","page_number":191,"box":{"x":68,"y":380,"width":474,"height":11}},{"id":"b4b87d22-bde0-485c-b9f7-54d1e799af3b","block_type":"box","text":"e.g.","page_number":191,"box":{"x":544,"y":381,"width":25,"height":10}},{"id":"dd874f47-d389-43eb-aede-8ee7f4d98227","block_type":"box","text":", financial exper tise, industry track record). To","page_number":191,"box":{"x":571,"y":380,"width":327,"height":11}},{"id":"4d81b5fe-96b3-4158-ae40-0dfcff42d12b","block_type":"box","text":"inform the process, we encourage companies to review the skills and experience of incumbent directors to identify","page_number":191,"box":{"x":70,"y":395,"width":815,"height":11}},{"id":"351aec73-ed42-4273-8f4a-40a9c63af687","block_type":"box","text":"any gaps and whether the skills and experience of a director candidate would be additive. We welcome disclosures","page_number":191,"box":{"x":69,"y":410,"width":817,"height":11}},{"id":"d55324b5-c700-4c5b-b8b6-a22fdbeb3fe3","block_type":"box","text":"that explain how the board considered different skills and experience to ensure that the directors collectively can be","page_number":191,"box":{"x":68,"y":425,"width":829,"height":11}},{"id":"1c34d82d-74e1-4510-9bce-421c1b3d1a68","block_type":"box","text":"effective in fulfilling their responsibilities. We assess a company’s board composition against that of its peer group","page_number":191,"box":{"x":69,"y":439,"width":821,"height":12}},{"id":"935da9b4-a1c6-4933-b6c7-554dcba89f20","block_type":"box","text":"and local market requirements.","page_number":191,"box":{"x":69,"y":455,"width":221,"height":10}},{"id":"1633d946-56a0-41de-a9ed-39e0cc7b4151","block_type":"box","text":"Shareholders periodically vote to elect directors to serve on the board. We do not prescribe any par ticular board","page_number":191,"box":{"x":102,"y":473,"width":798,"height":11}},{"id":"d317f473-a1d3-4a0c-b56c-074928f442ee","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":191,"box":{"x":69,"y":488,"width":800,"height":11}},{"id":"b5afc7c6-c265-4324-9f3a-63f25423d7d1","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":191,"box":{"x":70,"y":503,"width":794,"height":11}},{"id":"d174be04-c007-4eed-a916-d940a0e223be","block_type":"box","text":"committee, where a company has not demonstrated it has an appointment process that results in a high functioning","page_number":191,"box":{"x":69,"y":517,"width":830,"height":12}},{"id":"368ea54b-0c80-4534-b928-c8a55ca70f8e","block_type":"box","text":"board with the appropriate complement of skills and experience amongst the directors to suppor t strong financial","page_number":191,"box":{"x":69,"y":532,"width":808,"height":12}},{"id":"69229b6a-c6e1-4458-b014-874429e9e088","block_type":"box","text":"per formance over time. We may vote against newly nominated directors who do not seem to have the appropriate","page_number":191,"box":{"x":70,"y":547,"width":808,"height":12}},{"id":"8c336249-6bb8-477c-962c-bb4aa4f147c2","block_type":"box","text":"skills or experience to contribute to the board’s effectiveness.","page_number":191,"box":{"x":69,"y":562,"width":442,"height":11}},{"id":"dd2eb5a0-dc73-4c68-a5fa-6ff428374009","block_type":"box","text":"Independence","page_number":191,"box":{"x":70,"y":585,"width":99,"height":10}},{"id":"dcd94bf1-31fb-445a-bbb7-8588b4f48397","block_type":"box","text":"Director independence from management, significant shareholders or other stakeholders (","page_number":191,"box":{"x":102,"y":603,"width":642,"height":11}},{"id":"0d2d8347-6ebf-43ba-a07b-9cd6c4771fbc","block_type":"box","text":"e.g.","page_number":191,"box":{"x":746,"y":605,"width":25,"height":9}},{"id":"ac4fbdb5-0809-47f5-997f-062ab0053eff","block_type":"box","text":", government or","page_number":191,"box":{"x":773,"y":604,"width":111,"height":10}},{"id":"01d78c41-2a1d-47ee-bda0-6a010857bc49","block_type":"box","text":"employees) is of paramount impor tance to the protection of the interests of minority shareholders such as","page_number":191,"box":{"x":69,"y":618,"width":759,"height":11}},{"id":"4808b61a-1a27-448e-94f2-a20cc2faf5ef","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":191,"box":{"x":70,"y":633,"width":793,"height":11}},{"id":"ba9423d9-9db2-4811-af71-a901cd41cf9f","block_type":"box","text":"conflicts of interest or undue influence.","page_number":191,"box":{"x":69,"y":648,"width":278,"height":9}},{"id":"720a6365-b2d2-4c75-a728-88071f8daca7","block_type":"box","text":"7","page_number":191,"box":{"x":349,"y":648,"width":4,"height":5}},{"id":"dfb3e2fa-9432-466f-b072-e313e607f88e","block_type":"box","text":"This also helps to ensure that board committees are composed of a","page_number":191,"box":{"x":358,"y":648,"width":486,"height":11}},{"id":"17d7676e-a4e7-426e-9bb8-b1497765ea10","block_type":"box","text":"sufficient number of independent directors. Companies domiciled in markets with a higher threshold for board","page_number":191,"box":{"x":69,"y":663,"width":783,"height":11}},{"id":"bab32ffe-d5e9-477e-b109-ce6978fb146d","block_type":"box","text":"independence should meet those local requirements.","page_number":191,"box":{"x":70,"y":678,"width":378,"height":10}},{"id":"d2c84402-e291-4850-ac9e-61e57139e2ce","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":191,"box":{"x":101,"y":696,"width":803,"height":11}},{"id":"d770f389-9d7f-44b9-9e95-88e4ffda961c","block_type":"box","text":"independence. We may also vote against the election of the chair of the committee responsible for board","page_number":191,"box":{"x":70,"y":711,"width":748,"height":11}},{"id":"c520a1a6-1175-4d57-97fb-e1beb0e5de71","block_type":"box","text":"composition if this is a perennial issue.","page_number":191,"box":{"x":69,"y":726,"width":280,"height":11}},{"id":"97368422-1449-49e4-a1a6-b94421d1d802","block_type":"box","text":"6","page_number":191,"box":{"x":69,"y":756,"width":4,"height":4}},{"id":"b3c3351a-1177-4959-a7ed-8422e34ed01c","block_type":"box","text":"See the Corporate Governance Codes of Germany, Japan, and the UK, as well as the corporate governance","page_number":191,"box":{"x":93,"y":755,"width":763,"height":11}},{"id":"e9d061c1-c71b-4fe2-a13e-b3ed130742bb","block_type":"box","text":"principles of the US Business Roundtable as examples.","page_number":191,"box":{"x":94,"y":770,"width":394,"height":11}},{"id":"896f33b2-abde-4322-ad92-eee8f3bfd3d8","block_type":"box","text":"7","page_number":191,"box":{"x":69,"y":788,"width":4,"height":5}},{"id":"a7b1afa8-94be-43b9-a5f4-679ac30197f5","block_type":"box","text":"Common impediments to independence may include but are not limited to: current or recent employment at the","page_number":191,"box":{"x":93,"y":788,"width":795,"height":11}},{"id":"71781c35-1fc4-4a66-9744-353ebbf6f51c","block_type":"box","text":"company or a subsidiary; being, or representing, a shareholder with a substantial shareholding in the company;","page_number":191,"box":{"x":93,"y":803,"width":793,"height":11}},{"id":"0e37ef59-2f91-40e4-9cfb-e0333ac1ea73","block_type":"box","text":"interlocking directorships; lengthy tenure, and having any other interest, business, or other relationship which","page_number":191,"box":{"x":94,"y":818,"width":778,"height":11}},{"id":"acafc27e-8d8b-411c-8adc-df244ec7b7ec","block_type":"box","text":"could, or could reasonably be perceived to, materially inter fere with a director’s ability to act in the best interests","page_number":191,"box":{"x":93,"y":833,"width":807,"height":11}},{"id":"2bc9a0b0-08aa-4902-9ad9-aada3de83567","block_type":"box","text":"of the company and shareholders.","page_number":191,"box":{"x":93,"y":848,"width":242,"height":11}},{"id":"cb913423-ed25-4568-8330-1f90304caff6","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":191,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"9ab6faa4-c83e-4b55-8b12-56dc885c5438","block_type":"box","text":"Global Engagement and Voting Guidelines | 6","page_number":191,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"727710b3-8123-474e-ac80-7070c7dc9cf6","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":191,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"cbe108fe-4578-4057-be3e-bf8e2d516a47","block_type":"box","text":"Independent board leadership","page_number":192,"box":{"x":70,"y":45,"width":212,"height":11}},{"id":"e5dcce42-e2dc-489a-b292-6b4707e04efd","block_type":"box","text":"Practices across markets differ, as do board structures, but we observe two main approaches to independent","page_number":192,"box":{"x":102,"y":63,"width":784,"height":11}},{"id":"2a7db352-e839-47aa-a725-27e512e9a502","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":192,"box":{"x":69,"y":78,"width":827,"height":11}},{"id":"2d08ff56-6f1f-445a-a57c-3905f8c7ee08","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":192,"box":{"x":68,"y":93,"width":774,"height":11}},{"id":"03f595c8-f262-42b6-a57e-e091370b5daa","block_type":"box","text":"coordinating with the other non-executive directors and working closely with the executive chair on the board agenda","page_number":192,"box":{"x":69,"y":108,"width":826,"height":11}},{"id":"48f4a5ad-b718-4242-8d42-629ee8ad5ea2","block_type":"box","text":"and other board procedures. In this case, the executive chair and the lead independent director work together to","page_number":192,"box":{"x":69,"y":123,"width":801,"height":11}},{"id":"c1fa4348-eb1e-44a4-8a73-1ddb49705a84","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":192,"box":{"x":69,"y":138,"width":823,"height":11}},{"id":"1aef3075-5828-420a-90b0-ec803adf6133","block_type":"box","text":"the chair of a relevant committee, should be available to investors to discuss governance matters such as CEO","page_number":192,"box":{"x":68,"y":152,"width":793,"height":12}},{"id":"8f77a935-f0d3-4a23-835a-e0995da93afe","block_type":"box","text":"succession, executive pay, and board per formance. We look to boards to explain their board leadership model and","page_number":192,"box":{"x":69,"y":167,"width":816,"height":11}},{"id":"de278468-49d0-47ae-a74f-d61bea36a078","block_type":"box","text":"how it serves the interests of shareholders.","page_number":192,"box":{"x":69,"y":182,"width":311,"height":9}},{"id":"8bf58c29-a1fc-43c6-bb45-179a7678a915","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":192,"box":{"x":101,"y":201,"width":798,"height":11}},{"id":"cf8d68f6-7c33-4fa4-9901-e75a4ced2982","block_type":"box","text":"an identified independent leader of the board with clear responsibilities for board per formance. We may vote against","page_number":192,"box":{"x":69,"y":216,"width":831,"height":11}},{"id":"042afef9-37e8-4a07-b58a-114710d6916e","block_type":"box","text":"the most senior independent director if the board has a policy of not engaging with shareholders.","page_number":192,"box":{"x":68,"y":231,"width":691,"height":11}},{"id":"394f1e03-1e61-4e3c-833a-8375f1b32402","block_type":"box","text":"Tenure and succession","page_number":192,"box":{"x":70,"y":253,"width":162,"height":9}},{"id":"57514fff-35af-4908-a9ad-0451274c7db3","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":192,"box":{"x":102,"y":272,"width":803,"height":11}},{"id":"18074de3-d23c-44ef-8bdf-c2620a8f8ae2","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":192,"box":{"x":69,"y":286,"width":805,"height":11}},{"id":"8471edd0-c395-460f-80d3-1ffa07456aad","block_type":"box","text":"director tenure par ticularly around the contributions of directors who have served for longer periods than typically","page_number":192,"box":{"x":69,"y":301,"width":806,"height":12}},{"id":"ce3688f7-af35-4302-b441-b0bfeada06df","block_type":"box","text":"provided for under local practice. In our experience, long-serving directors could become less independent given their","page_number":192,"box":{"x":70,"y":316,"width":833,"height":12}},{"id":"eb9dfb76-7055-4bee-972b-6b08e4ee55c5","block_type":"box","text":"long-term relationship with management and involvement in past board decisions.","page_number":192,"box":{"x":70,"y":331,"width":581,"height":11}},{"id":"d3a820d0-e9f9-4106-92b5-3084aebdbe79","block_type":"box","text":"Succession planning for board roles helps achieve the appropriate cadence of turnover that balances renewal","page_number":192,"box":{"x":102,"y":350,"width":779,"height":11}},{"id":"18a61b24-a08c-476c-aebf-a8c45acaf43d","block_type":"box","text":"through the regular introduction of directors with fresh perspectives and exper tise with continuity through the","page_number":192,"box":{"x":68,"y":365,"width":777,"height":11}},{"id":"fd75c82e-aba1-4d57-b579-a935e9216896","block_type":"box","text":"retention of directors with long-term knowledge of the board and company.","page_number":192,"box":{"x":69,"y":379,"width":528,"height":12}},{"id":"34d06f90-b160-4a34-9b3a-a7fdf7a038cb","block_type":"box","text":"In markets where there is not specific director tenure guidance from regulation or corporate governance best","page_number":192,"box":{"x":102,"y":398,"width":774,"height":11}},{"id":"912f1dc9-e2f4-4c01-af90-b2d29522e133","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":192,"box":{"x":70,"y":413,"width":795,"height":11}},{"id":"d42d9a66-5dc3-4321-9ef4-38a31fe77381","block_type":"box","text":"company does not clearly disclose its approach to director tenure and board renewal. We may vote against the","page_number":192,"box":{"x":69,"y":428,"width":788,"height":11}},{"id":"39705a34-ac1a-49b5-b105-9e8da7191054","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":192,"box":{"x":69,"y":443,"width":839,"height":11}},{"id":"5692830a-01b7-488f-989a-89d1e51726af","block_type":"box","text":"for their continued service is not evident.","page_number":192,"box":{"x":68,"y":458,"width":292,"height":9}},{"id":"75ed24b2-9017-49fd-8157-780b13136758","block_type":"box","text":"Capacity","page_number":192,"box":{"x":70,"y":480,"width":60,"height":11}},{"id":"25f61f82-2f27-4378-ab98-d68a9419db0c","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":192,"box":{"x":101,"y":499,"width":784,"height":11}},{"id":"95770f8d-cff3-4d9d-bc5f-4f49cfee8699","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":192,"box":{"x":69,"y":513,"width":801,"height":12}},{"id":"41b729ea-7bb1-4fe7-a30f-48bf7a683d7e","block_type":"box","text":"company taking into consideration competing responsibilities. We recognize that board leadership roles vary across","page_number":192,"box":{"x":69,"y":529,"width":823,"height":11}},{"id":"893215af-e3aa-4a7d-a3de-a7855d88da87","block_type":"box","text":"markets in responsibilities and required time commitment but note that they are generally more intensive than a","page_number":192,"box":{"x":69,"y":543,"width":800,"height":11}},{"id":"2fa459eb-e7a6-405c-8281-5b20b0d797ab","block_type":"box","text":"standard directorship. We will take local norms and practices into consideration when making our voting","page_number":192,"box":{"x":69,"y":558,"width":741,"height":11}},{"id":"96210477-8c27-4b1d-9217-645b9907c44f","block_type":"box","text":"determinations across markets.","page_number":192,"box":{"x":69,"y":573,"width":226,"height":9}},{"id":"8d4ad6d2-2595-4867-b105-119449623413","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":192,"box":{"x":101,"y":592,"width":776,"height":11}},{"id":"8bb7e84d-398a-4c0a-b1e3-f38b476e9aa7","block_type":"box","text":"their duties to the board and company.","page_number":192,"box":{"x":68,"y":607,"width":275,"height":11}},{"id":"d501d081-a36a-4548-8fbe-a6005960b520","block_type":"box","text":"Director elections","page_number":192,"box":{"x":70,"y":629,"width":124,"height":9}},{"id":"d7248ada-f886-4e50-9f35-d9d27274355f","block_type":"box","text":"Regular election of directors, ideally annually, suppor ts director accountability to shareholders. A classified board","page_number":192,"box":{"x":102,"y":647,"width":805,"height":12}},{"id":"670a785f-81db-432d-a87b-b7cdb7dc6967","block_type":"box","text":"structure","page_number":192,"box":{"x":69,"y":663,"width":63,"height":8}},{"id":"a31bc815-8919-4e93-8218-171342aa65d1","block_type":"box","text":"8","page_number":192,"box":{"x":133,"y":663,"width":4,"height":4}},{"id":"63aab2b2-d6b2-4327-94cf-9d61b8875fd9","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":192,"box":{"x":144,"y":662,"width":761,"height":12}},{"id":"c80bcf2a-5c29-4501-b4b5-cbf2e1cdb82e","block_type":"box","text":"basis of its business model (","page_number":192,"box":{"x":69,"y":677,"width":206,"height":11}},{"id":"08bc2280-6c75-4726-a6af-39ba8d7cc304","block_type":"box","text":"e.g.","page_number":192,"box":{"x":277,"y":679,"width":24,"height":10}},{"id":"ffa174a2-b338-428f-9cf4-ced4db072b11","block_type":"box","text":", a non-operating company such as closed-end funds).","page_number":192,"box":{"x":304,"y":677,"width":382,"height":12}},{"id":"0aa19044-7a7c-4b9b-982b-4b7170d82bbf","block_type":"box","text":"Shareholders should have the oppor tunity to evaluate nominated directors individually rather than in bundled","page_number":192,"box":{"x":102,"y":696,"width":774,"height":11}},{"id":"5af10392-e872-4aa0-9ec1-68a98d49a239","block_type":"box","text":"slates. We look to companies to provide sufficient information on each director standing for election so that","page_number":192,"box":{"x":69,"y":711,"width":770,"height":11}},{"id":"4e62698c-2ce0-42b7-a6b8-225244851b27","block_type":"box","text":"shareholders can assess their capabilities and suitability. We will generally not suppor t the election of directors","page_number":192,"box":{"x":69,"y":726,"width":794,"height":11}},{"id":"a5be1660-4089-4351-909d-5e919e63a610","block_type":"box","text":"whose names and biographical details have not been disclosed sufficiently in advance of the shareholder meeting.","page_number":192,"box":{"x":68,"y":740,"width":818,"height":12}},{"id":"feb04e5e-de7f-4d01-8963-c2d860759017","block_type":"box","text":"Each director’s appointment should be dependent on receiving a simple majority of the votes cast at the","page_number":192,"box":{"x":102,"y":759,"width":743,"height":11}},{"id":"da99ad32-3101-4537-ab40-c9245afe1e0a","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":192,"box":{"x":69,"y":774,"width":823,"height":11}},{"id":"a5ac0f01-b54a-4a9d-ae0d-a1e15b75f6fd","block_type":"box","text":"to how its approach best serves investors’ interests.","page_number":192,"box":{"x":68,"y":789,"width":377,"height":11}},{"id":"79ebda5a-60d5-4748-a0d3-dfeea91cc536","block_type":"box","text":"We may vote for shareholder or management proposals seeking to establish annual election of directors and/or","page_number":192,"box":{"x":101,"y":807,"width":798,"height":12}},{"id":"3f644dc7-5c78-4a0b-bcf0-34a38ca2f3f6","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":192,"box":{"x":69,"y":822,"width":822,"height":12}},{"id":"20ed914e-1330-41b2-b6e0-a4120dce3de3","block_type":"box","text":"par t of a single slate if we have concerns about the profile or per formance of an individual director.","page_number":192,"box":{"x":70,"y":837,"width":706,"height":12}},{"id":"b9f2b07a-3d7c-47b0-9642-5ce25623227f","block_type":"box","text":"8","page_number":192,"box":{"x":69,"y":867,"width":4,"height":4}},{"id":"442e990f-180b-478b-8b25-7f51396f1c5a","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":192,"box":{"x":78,"y":866,"width":818,"height":12}},{"id":"0ecf9bc0-848f-4e57-b16d-c30a75e2556b","block_type":"box","text":"directors stands for election in any one year.","page_number":192,"box":{"x":69,"y":882,"width":315,"height":11}},{"id":"51ab2311-c7d0-4825-99a2-b1808fff3f6c","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":192,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"ed5413b9-3591-4c4e-80ca-d4c54cc0cee7","block_type":"box","text":"Global Engagement and Voting Guidelines | 7","page_number":192,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"e6462efe-53d7-48b8-bd4f-a29f2f4cb853","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":192,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"7fbad8dc-f514-4ef2-b761-72cfc9bafd9d","block_type":"box","text":"Committees","page_number":193,"box":{"x":70,"y":45,"width":84,"height":9}},{"id":"c6ac6830-ca5b-4390-8658-772e4dbc38b7","block_type":"box","text":"Many boards establish committees to focus on specific responsibilities of the board such as audit and risk,","page_number":193,"box":{"x":102,"y":63,"width":766,"height":11}},{"id":"19faeaca-9dd7-4b14-850d-7938f731e5bf","block_type":"box","text":"governance and human capital, and executive compensation, amongst other matters. We do not prescribe to","page_number":193,"box":{"x":68,"y":78,"width":776,"height":11}},{"id":"d8ac623e-c026-4a7a-a7d2-9d2a0caef4e7","block_type":"box","text":"companies what committees they should establish, but we seek to understand the board’s rationale for the","page_number":193,"box":{"x":69,"y":93,"width":766,"height":11}},{"id":"962f7ca4-dd8e-42ab-843d-d952a20d1f4e","block_type":"box","text":"committee structure it determines is appropriate. We note that, in some markets, regulation requires such","page_number":193,"box":{"x":69,"y":108,"width":759,"height":11}},{"id":"9dfa6a8a-54fa-467c-8d62-ca38ac3ec58e","block_type":"box","text":"committees. The responsibilities of each committee should be clear, and the board should ensure that all critical","page_number":193,"box":{"x":69,"y":123,"width":804,"height":11}},{"id":"afdd4530-a62f-4add-baca-fd33f5569748","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":193,"box":{"x":69,"y":138,"width":837,"height":11}},{"id":"aa737117-0508-4986-bcf4-1236b6e65452","block_type":"box","text":"the board discloses the structure, membership, propor tion of independent directors, and responsibilities of each","page_number":193,"box":{"x":68,"y":152,"width":806,"height":11}},{"id":"e9b7416d-349d-451b-ba4b-c075d0a494f7","block_type":"box","text":"committee. The responsibilities we typically see assigned to the three most common committees include:","page_number":193,"box":{"x":69,"y":168,"width":752,"height":11}},{"id":"3a830ea4-a133-4cac-9f3e-3719001c17ce","block_type":"box","text":"•","page_number":193,"box":{"x":69,"y":188,"width":6,"height":4}},{"id":"f3357286-ad62-43c8-9a6e-5539076939a4","block_type":"box","text":"Audit and risk – oversight responsibilities for the integrity of financial repor ting, risk management and","page_number":193,"box":{"x":101,"y":185,"width":722,"height":11}},{"id":"476b3765-c997-4f13-812f-8231edf0b8fd","block_type":"box","text":"compliance with legal and regulatory requirements; may also play an oversight role in relation to the internal","page_number":193,"box":{"x":101,"y":200,"width":771,"height":11}},{"id":"37c8dccf-6fcc-4ff5-a504-9cd80f578fc8","block_type":"box","text":"audit function and whistleblowing mechanisms.","page_number":193,"box":{"x":102,"y":214,"width":335,"height":12}},{"id":"abbd6bd1-3223-41f9-9182-318d9a06a8a4","block_type":"box","text":"•","page_number":193,"box":{"x":69,"y":235,"width":6,"height":4}},{"id":"40ced0d6-b3b2-4bbb-ad5e-f922bb523622","block_type":"box","text":"Nominating, governance and human capital – oversight responsibilities for corporate governance principles and","page_number":193,"box":{"x":102,"y":232,"width":790,"height":11}},{"id":"f5d4a0f0-80e4-482c-9be6-c4e7abdb4c03","block_type":"box","text":"practices of the company, including the periodic review of board per formance; responsibility for succession","page_number":193,"box":{"x":102,"y":247,"width":761,"height":11}},{"id":"2026a869-e285-41f5-9e22-60ccda7a18db","block_type":"box","text":"planning for CEO and key board roles, as well as the director appointment process; may also have oversight","page_number":193,"box":{"x":102,"y":262,"width":769,"height":11}},{"id":"ae7e66a3-696f-41b9-855f-bbfbc740f7f8","block_type":"box","text":"responsibilities for human capital management strategies, including corporate culture and purpose.","page_number":193,"box":{"x":102,"y":276,"width":707,"height":12}},{"id":"27568137-8e9b-422b-bb29-10ef036e040b","block_type":"box","text":"•","page_number":193,"box":{"x":69,"y":297,"width":6,"height":4}},{"id":"23b086a5-7cb6-49c1-b484-ed7f7f9758b7","block_type":"box","text":"Executive compensation – determines the compensation policies and programs for the CEO and other executive","page_number":193,"box":{"x":102,"y":294,"width":796,"height":11}},{"id":"a710c86a-d308-469d-9af1-837727055c91","block_type":"box","text":"officers, approves annual awards and payments under the policies; may also have oversight responsibilities for","page_number":193,"box":{"x":102,"y":309,"width":793,"height":11}},{"id":"97a35009-d592-4d98-a799-969b7a1c7901","block_type":"box","text":"firm-wide compensation policies.","page_number":193,"box":{"x":101,"y":323,"width":232,"height":11}},{"id":"eeb791b1-b398-4e8f-b288-5e72acab5d45","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":193,"box":{"x":101,"y":342,"width":807,"height":11}},{"id":"431adbf7-24e7-4c24-a6ee-f317a3a6219b","block_type":"box","text":"to convey concerns about how a committee has under taken its responsibilities. We may vote against the election of","page_number":193,"box":{"x":68,"y":357,"width":828,"height":11}},{"id":"de168cf4-667f-497b-ba01-770fb73e18aa","block_type":"box","text":"the most senior non-executive director if there is not a clearly disclosed approach to board committees.","page_number":193,"box":{"x":68,"y":372,"width":738,"height":11}},{"id":"8d196363-84c0-49e3-a88f-afdba688a5f5","block_type":"box","text":"Board and director evaluation","page_number":193,"box":{"x":70,"y":395,"width":209,"height":8}},{"id":"5c199eef-bc1b-450c-a604-7788b15af0bf","block_type":"box","text":"We consider it best practice for companies to conduct an annual review of the per formance of the board, the","page_number":193,"box":{"x":101,"y":413,"width":776,"height":11}},{"id":"5bbca1d6-214f-4b91-a58c-ac93199d7cac","block_type":"box","text":"committees, the chair and individual directors. Periodically, this review could be under taken by an independent third","page_number":193,"box":{"x":69,"y":428,"width":825,"height":11}},{"id":"f128f25b-ab75-4afe-b210-ac6c939ad2fb","block_type":"box","text":"par ty able to bring objective perspectives to the board on governance and per formance. We encourage companies to","page_number":193,"box":{"x":70,"y":443,"width":831,"height":11}},{"id":"c7bc0316-5bdc-4ef2-944f-d048faa80c87","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":193,"box":{"x":69,"y":458,"width":835,"height":11}},{"id":"5d177e9a-3817-49ec-86d5-9dd156bb2ae4","block_type":"box","text":"a result.","page_number":193,"box":{"x":69,"y":473,"width":57,"height":8}},{"id":"b7902b56-668c-4954-9494-5b9fd527fe6f","block_type":"box","text":"Access to independent advice","page_number":193,"box":{"x":68,"y":495,"width":214,"height":11}},{"id":"e8b92acc-4bda-4954-9a71-35d8b2758de1","block_type":"box","text":"To suppor t the directors in effectively fulfilling their duties to the company and shareholders, they should have","page_number":193,"box":{"x":101,"y":513,"width":786,"height":12}},{"id":"ac760f4b-3269-4379-afb6-ec25c39f32c4","block_type":"box","text":"access to independent advice. In cer tain circumstances, it may be helpful to boards to retain independent third","page_number":193,"box":{"x":69,"y":528,"width":793,"height":11}},{"id":"eafe83c8-db72-41da-8b4c-07a64e7d14d4","block_type":"box","text":"par ties to advise on critical matters. These might include new industry developments such as emergent and","page_number":193,"box":{"x":70,"y":543,"width":770,"height":11}},{"id":"2fa2f8c3-e5fc-439a-a217-9756d454bb5f","block_type":"box","text":"disruptive technology, operating events with material consequences for the company’s reputation and/or","page_number":193,"box":{"x":69,"y":558,"width":746,"height":11}},{"id":"e9e47c30-8020-4910-b181-155eb9a58b30","block_type":"box","text":"per formance, or significant transactions. Board committees may similarly retain third par ties to advise them on","page_number":193,"box":{"x":70,"y":573,"width":793,"height":11}},{"id":"4ab1ac38-d5f6-4121-ac5b-7bd1138738f0","block_type":"box","text":"specialist matters such as audit, compensation and succession planning.","page_number":193,"box":{"x":69,"y":588,"width":524,"height":11}},{"id":"74378fec-f62d-4c3e-9dc3-b956400cb128","block_type":"box","text":"EXECUTIVE COMPENSATION","page_number":193,"box":{"x":385,"y":618,"width":207,"height":9}},{"id":"bc16a265-4dae-433a-aa53-845de428b388","block_type":"box","text":"Boards play an impor tant role in establishing compensation arrangements that enable the company to recruit,","page_number":193,"box":{"x":102,"y":637,"width":784,"height":11}},{"id":"4f1ed430-f4b5-4328-8893-1148991ca5b1","block_type":"box","text":"retain and reward the caliber of executive management necessary to lead and operate the company to deliver","page_number":193,"box":{"x":69,"y":652,"width":782,"height":11}},{"id":"51429069-2536-4402-b455-1d983546be6c","block_type":"box","text":"superior financial returns over time. We focus on alignment between variable pay and a company’s financial","page_number":193,"box":{"x":69,"y":666,"width":766,"height":12}},{"id":"7f9af1af-7849-4ca2-883c-f9e78589f274","block_type":"box","text":"per formance.","page_number":193,"box":{"x":70,"y":681,"width":93,"height":11}},{"id":"546350c2-8dff-4203-8651-d62d391561b9","block_type":"box","text":"Generally, executive compensation arrangements have four components: base salary, annual bonus that rewards","page_number":193,"box":{"x":102,"y":700,"width":805,"height":11}},{"id":"53d45ada-864b-47e9-9777-3a598132923a","block_type":"box","text":"per formance against shor t-term metrics, incentives – most often share-based that reward per formance against long","page_number":193,"box":{"x":70,"y":715,"width":831,"height":11}},{"id":"61a0fbbb-e9b1-4502-94b1-ba850b83f7e8","block_type":"box","text":"term metrics, and pensions and benefits. In our observation, base salary, pensions and benefits are largely set","page_number":193,"box":{"x":68,"y":730,"width":798,"height":11}},{"id":"024ff758-c89f-4101-b22c-ace3e17423e4","block_type":"box","text":"relative to market norms and benchmarks. The annual bonus and share-based incentive, or variable pay plans, tend","page_number":193,"box":{"x":69,"y":745,"width":824,"height":11}},{"id":"fd351e43-4321-4719-a8ca-cb908737b6f6","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":193,"box":{"x":68,"y":760,"width":807,"height":11}},{"id":"941313a6-e4a0-4676-b5ee-dbb982e22fd7","block_type":"box","text":"recruit and motivate.","page_number":193,"box":{"x":69,"y":774,"width":146,"height":9}},{"id":"b73f20aa-9b5f-4745-b3e8-526d2c07ef52","block_type":"box","text":"Recognizing the unique circumstances of each company, we determine whether to suppor t a company’s","page_number":193,"box":{"x":102,"y":793,"width":739,"height":11}},{"id":"ef083d59-9c49-490c-9d49-be112d71a2ad","block_type":"box","text":"approach to executive compensation on a case-by-case basis. We rely on companies providing sufficient quantitative","page_number":193,"box":{"x":69,"y":808,"width":831,"height":11}},{"id":"ed6aac64-10d6-4b4f-9207-2e7a889304b1","block_type":"box","text":"and qualitative information in their disclosures to enable shareholders to understand the compensation","page_number":193,"box":{"x":69,"y":823,"width":737,"height":11}},{"id":"d977bd7c-5e89-43bf-8bbd-d4fb12a45b8e","block_type":"box","text":"arrangements and assess the alignment with investors’ interests. Features we look for in compensation","page_number":193,"box":{"x":69,"y":837,"width":741,"height":12}},{"id":"f7f54abc-8427-4ffb-a454-ef65e5f205b1","block_type":"box","text":"arrangements include:","page_number":193,"box":{"x":69,"y":853,"width":157,"height":11}},{"id":"d760449f-d508-4bed-846c-3d90602d8219","block_type":"box","text":"•","page_number":193,"box":{"x":69,"y":873,"width":6,"height":4}},{"id":"90941a39-f62b-4863-af7b-1be6e38df810","block_type":"box","text":"Fixed pay components, including base salary, benefits and prerequisites that are appropriate in the context of","page_number":193,"box":{"x":102,"y":870,"width":783,"height":11}},{"id":"2fa2a327-57ee-4b40-a687-71ec62233008","block_type":"box","text":"the company’s size, sector and market.","page_number":193,"box":{"x":101,"y":885,"width":280,"height":11}},{"id":"a19cf35e-5dd9-4822-a70f-1796a155b2bf","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":193,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"467f70f0-7d75-4989-8dbd-c17762766769","block_type":"box","text":"Global Engagement and Voting Guidelines | 8","page_number":193,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"faa0a595-ff7f-47da-b889-192a913051e5","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":193,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"bcb45da4-2243-4abc-b35a-21ebf64f66f0","block_type":"box","text":"•","page_number":194,"box":{"x":69,"y":48,"width":6,"height":4}},{"id":"d4efaa4a-4c5d-4f8f-88f7-9853539ac3a2","block_type":"box","text":"Variable pay subject to per formance metrics that are closely linked to the company’s shor t- and long-term","page_number":194,"box":{"x":101,"y":45,"width":752,"height":11}},{"id":"ba8f35eb-348c-4789-a682-7352cb037307","block_type":"box","text":"strategic objectives.","page_number":194,"box":{"x":102,"y":60,"width":140,"height":11}},{"id":"01f9fa40-7f60-43de-807d-89461f77dc2f","block_type":"box","text":"•","page_number":194,"box":{"x":69,"y":80,"width":6,"height":4}},{"id":"f95800af-e4de-4d86-b368-0be81bee0cf3","block_type":"box","text":"Long-term incentives that motivate sustained per formance across a multi-year period.","page_number":194,"box":{"x":102,"y":77,"width":609,"height":11}},{"id":"703f66db-367b-4ebb-a538-b220d032556d","block_type":"box","text":"•","page_number":194,"box":{"x":69,"y":97,"width":6,"height":5}},{"id":"ba9110b0-ef4c-4ed3-9562-80ac12a3e49e","block_type":"box","text":"A balance between fixed and variable pay, shor t- and long-term incentives, and specific instruments (cash and","page_number":194,"box":{"x":101,"y":94,"width":784,"height":12}},{"id":"c8d8c0e3-f435-4ae8-80aa-195661f2bea3","block_type":"box","text":"equity awards) that promotes pay program durability and seldom necessitates one-off, discretionary payments.","page_number":194,"box":{"x":101,"y":109,"width":790,"height":11}},{"id":"4bb0c540-642a-4340-b1c6-eb0dadef2283","block_type":"box","text":"•","page_number":194,"box":{"x":69,"y":129,"width":6,"height":5}},{"id":"4719a679-bed8-4891-9873-8b97fac9ed30","block_type":"box","text":"Pay outcomes that are consistent with the returns to investors over the relevant time period.","page_number":194,"box":{"x":102,"y":127,"width":658,"height":11}},{"id":"88cb86d3-cc9f-47ad-a379-9fe12318438c","block_type":"box","text":"•","page_number":194,"box":{"x":69,"y":147,"width":6,"height":4}},{"id":"91faf006-e9db-472d-8cb7-dfb6cbf40b0a","block_type":"box","text":"Board discretion, if allowed within the variable pay arrangements, to be used sparingly, responsibly and","page_number":194,"box":{"x":102,"y":144,"width":735,"height":11}},{"id":"37f3b763-fd58-4d5e-ad19-1a3be83b21e0","block_type":"box","text":"transparently.","page_number":194,"box":{"x":101,"y":159,"width":95,"height":11}},{"id":"5cf19afc-afe5-4b5e-b8a7-cda2d1feda94","block_type":"box","text":"•","page_number":194,"box":{"x":69,"y":179,"width":6,"height":5}},{"id":"a4f69757-0937-43cf-a404-3c0a17760361","block_type":"box","text":"A requirement, that par ticipants in long-term share-based incentive plans build a meaningful shareholding in the","page_number":194,"box":{"x":101,"y":176,"width":798,"height":11}},{"id":"a44d55f6-c0a9-4f95-bfc5-1012bbd034a5","block_type":"box","text":"company within a defined time period, as determined by the board or relevant board committee.","page_number":194,"box":{"x":101,"y":191,"width":683,"height":11}},{"id":"e9a319d9-83c8-4129-a0ae-70eab38cdab6","block_type":"box","text":"•","page_number":194,"box":{"x":69,"y":211,"width":6,"height":5}},{"id":"cc8b40ee-83e0-4884-9f18-98fa537ec765","block_type":"box","text":"Change of control provisions that appropriately balance the interests of executives and shareholders.","page_number":194,"box":{"x":102,"y":208,"width":720,"height":12}},{"id":"e1a55ce6-7fbe-48ad-81b5-8cbc18e192ab","block_type":"box","text":"•","page_number":194,"box":{"x":69,"y":229,"width":6,"height":4}},{"id":"742e6d66-7249-4d93-b523-a8dea78e7d7e","block_type":"box","text":"Clawback or malus provisions that allow the company to recoup or hold back variable compensation from","page_number":194,"box":{"x":102,"y":226,"width":747,"height":11}},{"id":"ea6fc0ff-fa2b-49ed-beca-604e0aed2a7f","block_type":"box","text":"individuals whose awards were based on fraudulent activities, misstated financial repor ts, or executive","page_number":194,"box":{"x":102,"y":241,"width":733,"height":11}},{"id":"0c27b92d-0cbb-44cd-b495-6356ddfdbb7e","block_type":"box","text":"misconduct.","page_number":194,"box":{"x":102,"y":256,"width":84,"height":8}},{"id":"6d47eff4-620c-4416-adee-59a1ea0e3d90","block_type":"box","text":"•","page_number":194,"box":{"x":69,"y":276,"width":6,"height":4}},{"id":"705c762e-ed22-4297-9bd5-cc1dd4210c9d","block_type":"box","text":"Severance arrangements that protect the company’s interests but do not cost more than is contractual.","page_number":194,"box":{"x":102,"y":273,"width":738,"height":11}},{"id":"152eee7b-88db-4484-a33e-b61821e6c43c","block_type":"box","text":"We may vote against proposals to introduce new share-based incentives, approve existing policies or plans, or","page_number":194,"box":{"x":101,"y":292,"width":787,"height":11}},{"id":"7dd1d2a5-52d9-46aa-a125-65ce82f71383","block_type":"box","text":"approve the compensation repor t where we do not see alignment between executive compensation arrangements","page_number":194,"box":{"x":69,"y":307,"width":810,"height":11}},{"id":"bc838afd-8cc9-41d2-90a1-197924c0ddf8","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":194,"box":{"x":69,"y":321,"width":831,"height":11}},{"id":"672fa389-4dd7-4503-b4cb-dc1394708e84","block_type":"box","text":"compensation misaligned with per formance, we may vote against the election of the chair of the responsible","page_number":194,"box":{"x":69,"y":336,"width":775,"height":11}},{"id":"24306d77-3a3d-4d8e-a90e-b43ce2abebfd","block_type":"box","text":"committee, or the most senior independent director.","page_number":194,"box":{"x":69,"y":351,"width":371,"height":11}},{"id":"2e8d58f2-ff14-4f52-b22a-e9674b982324","block_type":"box","text":"NON-EXECUTIVE DIRECTOR COMPENSATION","page_number":194,"box":{"x":326,"y":381,"width":325,"height":9}},{"id":"9b26d610-8a34-4a2e-9957-eadfe4ff0125","block_type":"box","text":"Companies generally pay non-executive directors an annual retainer or fee in cash, shares or a combination of","page_number":194,"box":{"x":102,"y":400,"width":785,"height":11}},{"id":"d433da36-ed10-4bf3-ba0b-94d720380af3","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":194,"box":{"x":68,"y":415,"width":831,"height":11}},{"id":"076665ea-a000-4850-aa5f-ed0041eed97b","block_type":"box","text":"do not suppor t non-executive directors par ticipating in per formance-based incentive plans as doing so may create a","page_number":194,"box":{"x":69,"y":430,"width":825,"height":11}},{"id":"27c95e64-f45c-461b-ab06-e58abae783fd","block_type":"box","text":"conflict of interest and undermine their independence from management, whom they oversee.","page_number":194,"box":{"x":69,"y":444,"width":668,"height":12}},{"id":"a303ca8b-41f2-434e-860c-588a22665318","block_type":"box","text":"CAPITAL STRUCTURE","page_number":194,"box":{"x":411,"y":475,"width":156,"height":8}},{"id":"0feaa91a-ddf6-402a-8e35-e619672add0c","block_type":"box","text":"Boards are responsible for ensuring senior executive leadership has established a capital strategy that achieves","page_number":194,"box":{"x":102,"y":493,"width":800,"height":12}},{"id":"ec6cd464-ad24-4c82-b173-20de457e9e0b","block_type":"box","text":"appropriate capital allocation in suppor t of long-term financial resilience.","page_number":194,"box":{"x":69,"y":508,"width":516,"height":11}},{"id":"07990eb9-3f33-4cde-909d-8a578279d300","block_type":"box","text":"Where company practices diverge from those set out below, we look for companies to disclose why they view","page_number":194,"box":{"x":101,"y":527,"width":776,"height":11}},{"id":"d4dc5428-e129-4c85-8c27-c7a7c65e4213","block_type":"box","text":"these practices to be aligned with shareholders’ interests. We may vote against management proposals seeking","page_number":194,"box":{"x":68,"y":542,"width":803,"height":11}},{"id":"c81e2849-ff9c-466c-8e16-e23acd63cc4d","block_type":"box","text":"capital-related authorities, or the election of the most senior independent director, if we have concerns about a","page_number":194,"box":{"x":69,"y":557,"width":790,"height":11}},{"id":"71b6e50b-e22a-4b04-a2b4-49652046f9f0","block_type":"box","text":"company’s approach. We may also suppor t a shareholder proposal seeking conversion of shares with differentiated","page_number":194,"box":{"x":69,"y":571,"width":825,"height":12}},{"id":"22d1c548-25aa-4068-b531-689091431601","block_type":"box","text":"voting rights to a one-share, one-vote standard.","page_number":194,"box":{"x":68,"y":587,"width":336,"height":11}},{"id":"79339695-fec6-4788-a3c7-5190b307a369","block_type":"box","text":"Share issuance","page_number":194,"box":{"x":68,"y":609,"width":111,"height":9}},{"id":"5f41a12f-330d-47b9-9480-e1dadcaa8bab","block_type":"box","text":"We assess requests for share issuance for par ticular transactions on a case-by-case basis. We will generally","page_number":194,"box":{"x":101,"y":627,"width":776,"height":12}},{"id":"28e1ab94-704b-4778-97bb-4101c1e0b63b","block_type":"box","text":"suppor t authorities to issue shares when subject to pre-emptive rights, and up to 20% absent pre-emptive rights. We","page_number":194,"box":{"x":69,"y":642,"width":832,"height":12}},{"id":"1fce43bb-c4c3-4fc7-afc8-c57ec61166fa","block_type":"box","text":"consider it good practice for companies to seek regular approval of these authorities to allow shareholders to take","page_number":194,"box":{"x":69,"y":657,"width":815,"height":11}},{"id":"04feb865-921e-4197-9ec2-8d87d6970eb5","block_type":"box","text":"into consideration how prior authorities were used, as well as the current circumstances of the company and the","page_number":194,"box":{"x":70,"y":672,"width":802,"height":11}},{"id":"588fa07f-f261-443e-a105-380badcf1b23","block_type":"box","text":"market environment.","page_number":194,"box":{"x":69,"y":687,"width":145,"height":9}},{"id":"26154f92-ca48-4b67-9390-4f6454254dab","block_type":"box","text":"Share buybacks","page_number":194,"box":{"x":68,"y":709,"width":116,"height":11}},{"id":"faa3fbb6-1fcb-4260-a938-6ea06daff9cf","block_type":"box","text":"We assess share buyback proposals in the context of the company’s disclosed capital management strategy and","page_number":194,"box":{"x":101,"y":728,"width":806,"height":11}},{"id":"2322ca85-3634-4086-90b0-64f136122385","block_type":"box","text":"management’s determination of the appropriate balance between investment that suppor ts the long-term growth of","page_number":194,"box":{"x":69,"y":743,"width":823,"height":11}},{"id":"32e552e1-024e-4ec4-93d9-c0a11f76807e","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":194,"box":{"x":68,"y":758,"width":836,"height":11}},{"id":"cc94dfd6-551c-487e-ba95-ba40530be214","block_type":"box","text":"company’s balance sheet and executive compensation arrangements and the price at which shares are repurchased","page_number":194,"box":{"x":69,"y":773,"width":830,"height":11}},{"id":"d1dbb063-35e1-4b31-b7cc-87c0200049a2","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":194,"box":{"x":69,"y":787,"width":822,"height":12}},{"id":"5eae6503-704c-4c1c-878c-62658ef58248","block_type":"box","text":"allow shareholders to take into consideration how prior authorities were used, as well as the current circumstances","page_number":194,"box":{"x":69,"y":802,"width":823,"height":11}},{"id":"c0cfed0e-d7b2-4975-9690-084ab18b9d19","block_type":"box","text":"of the company and the market environment.","page_number":194,"box":{"x":69,"y":817,"width":319,"height":11}},{"id":"8359e434-990b-4986-a07e-2dcc4812bc11","block_type":"box","text":"Dividends","page_number":194,"box":{"x":69,"y":840,"width":69,"height":8}},{"id":"7a34184e-0c4a-4122-8bc0-1354610ff465","block_type":"box","text":"We generally defer to management and the board on dividend policy but may engage to seek fur ther clarification","page_number":194,"box":{"x":101,"y":858,"width":799,"height":11}},{"id":"113e1555-940d-4be1-8960-ee2fcf3245de","block_type":"box","text":"where a proposed dividend appears out of line with the company’s financial position.","page_number":194,"box":{"x":68,"y":873,"width":604,"height":11}},{"id":"366cc1b1-1950-40aa-af60-2c919e935e10","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":194,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"4ffccb63-eff9-4d93-9a77-5dbef316e591","block_type":"box","text":"Global Engagement and Voting Guidelines | 9","page_number":194,"box":{"x":590,"y":942,"width":319,"height":13}},{"id":"acddbd77-60d4-458f-b8d7-67aa3f25fcca","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":194,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6ac3375c-beea-450e-9d0d-f7f047dabe5b","block_type":"box","text":"Differentiated voting rights","page_number":195,"box":{"x":69,"y":45,"width":196,"height":11}},{"id":"0046d013-2112-4e6f-a562-8b798ac7abff","block_type":"box","text":"We prefer companies to adopt a one-share, one-vote structure for share classes with the same economic","page_number":195,"box":{"x":101,"y":63,"width":750,"height":11}},{"id":"b2165752-e4b3-4a04-9049-f4e76a28268f","block_type":"box","text":"exposure. Cer tain companies, par ticularly those new to public markets, could make the case to adopt a","page_number":195,"box":{"x":69,"y":78,"width":740,"height":11}},{"id":"b82cdb38-fba9-4952-88a9-ffc774fc1bac","block_type":"box","text":"differentiated voting rights structure, or dual class stock. In those situations, we encourage companies to evaluate","page_number":195,"box":{"x":69,"y":93,"width":819,"height":11}},{"id":"7b667c3f-d4c8-4f68-9c4a-54d6863dbfa6","block_type":"box","text":"and seek approval for their capital structure on a periodic basis.","page_number":195,"box":{"x":69,"y":108,"width":456,"height":11}},{"id":"30ac0da9-b632-47b5-a22a-068ca11d9c71","block_type":"box","text":"TRANSACTIONS AND SPECIAL SITUATIONS","page_number":195,"box":{"x":332,"y":138,"width":314,"height":9}},{"id":"018586cd-2f94-40f9-98d3-f7b53b4117ca","block_type":"box","text":"We monitor developments in transactions and special situations closely and under take our own detailed","page_number":195,"box":{"x":101,"y":157,"width":743,"height":11}},{"id":"406e05d7-34a5-477f-944f-af599a9dc721","block_type":"box","text":"analyses of proposals.","page_number":195,"box":{"x":69,"y":172,"width":159,"height":11}},{"id":"4780d7c3-a8cf-40e1-b56b-78093bb3544f","block_type":"box","text":"Mergers and acquisitions","page_number":195,"box":{"x":69,"y":194,"width":184,"height":11}},{"id":"6b2b6eb7-9266-4454-9cef-2b6663c79fcd","block_type":"box","text":"We evaluate proposed mergers or acquisitions by assessing the financial outcome for our clients as minority","page_number":195,"box":{"x":101,"y":213,"width":775,"height":11}},{"id":"fc42b0e7-b983-458c-b130-296e75268636","block_type":"box","text":"shareholders. Management should provide an assessment of the proposed transaction’s strategic and financial","page_number":195,"box":{"x":69,"y":228,"width":797,"height":11}},{"id":"9f23acc5-21c9-4b53-8429-d27a8882a60e","block_type":"box","text":"rationale, along with its execution and operational risks. We review each transaction independently based on these","page_number":195,"box":{"x":69,"y":243,"width":819,"height":11}},{"id":"33df4837-a622-4eaf-859f-3628efe86a63","block_type":"box","text":"factors and the degree to which the transaction enhances shareholder value. The board might consider establishing","page_number":195,"box":{"x":68,"y":257,"width":827,"height":12}},{"id":"cde34859-d081-43c1-b974-4f147537fa98","block_type":"box","text":"an ad hoc transaction committee to under take an independent assessment of a significant merger or acquisition, in","page_number":195,"box":{"x":69,"y":272,"width":827,"height":11}},{"id":"6fe35cea-99d9-45ca-a6a5-10fb36c5b281","block_type":"box","text":"advance of making its recommendation to shareholders.","page_number":195,"box":{"x":69,"y":287,"width":400,"height":11}},{"id":"3691e67e-3946-4967-9566-884688968f6c","block_type":"box","text":"We will vote against transactions that, in our assessment, do not advance our clients’ financial interests.","page_number":195,"box":{"x":101,"y":306,"width":749,"height":11}},{"id":"d1a80536-f551-4225-b08a-c51af998d6cf","block_type":"box","text":"Anti-takeover defenses","page_number":195,"box":{"x":68,"y":328,"width":167,"height":9}},{"id":"4902b906-a561-4964-b704-af242a5eb006","block_type":"box","text":"In principle, we do not suppor t companies using anti-takeover defenses, also known as poison pills or","page_number":195,"box":{"x":102,"y":347,"width":727,"height":11}},{"id":"ba84da64-9f3a-4e5c-b1df-af1f7992dd64","block_type":"box","text":"shareholder rights plans, as they can entrench management and boards which have not delivered long-term","page_number":195,"box":{"x":69,"y":362,"width":766,"height":11}},{"id":"4fd76b62-9cd1-4b77-86f1-247d8e2f0d30","block_type":"box","text":"shareholder value. By exception, a poison pill may be suppor ted if its purpose is to delay a takeover that is","page_number":195,"box":{"x":69,"y":376,"width":763,"height":12}},{"id":"8d7629cd-00f6-4218-9649-dd7871a8a5a1","block_type":"box","text":"considered sub-optimal and enable management to seek an improved offer. Similarly, management could make the","page_number":195,"box":{"x":69,"y":391,"width":821,"height":12}},{"id":"e3e6c0e9-2488-44f2-bba1-5949e63a7771","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":195,"box":{"x":69,"y":406,"width":799,"height":11}},{"id":"8861a3f1-8125-4573-b77d-7ba6d8b48a48","block_type":"box","text":"investors. Defense mechanisms introduced in these circumstances should be limited in term and threshold, and also","page_number":195,"box":{"x":70,"y":421,"width":836,"height":11}},{"id":"8628f5f9-c326-4be5-98e2-6fc8f864ad3a","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":195,"box":{"x":69,"y":436,"width":835,"height":11}},{"id":"cb7273cc-952e-45e5-9c8e-ae054f178a37","block_type":"box","text":"a shareholder vote any mechanisms expected to be in place for more than 12 months.","page_number":195,"box":{"x":69,"y":451,"width":616,"height":11}},{"id":"e0f35fb3-76b2-48d9-a7f4-7f3061c6a4dd","block_type":"box","text":"Shareholder activism","page_number":195,"box":{"x":68,"y":473,"width":153,"height":9}},{"id":"ca178cd9-493d-4aa7-88a4-c3fd30932399","block_type":"box","text":"When companies are the focus of an activism campaign, we may communicate with the activist to understand","page_number":195,"box":{"x":101,"y":492,"width":783,"height":11}},{"id":"7e94e4aa-935b-4c99-be1f-6cff78804ff7","block_type":"box","text":"their analysis and objectives, once they have publicly disclosed their campaign. We may also engage with company","page_number":195,"box":{"x":68,"y":507,"width":819,"height":11}},{"id":"0ffb111c-7647-40b8-b34f-6e866b3a077f","block_type":"box","text":"management and possibly board members, especially those the activist may be seeking to replace. In our","page_number":195,"box":{"x":69,"y":522,"width":755,"height":11}},{"id":"a4110a29-aa97-418b-a22e-10e54e7444d9","block_type":"box","text":"assessment, we evaluate various factors, including the concerns raised by the activist and the case for change; the","page_number":195,"box":{"x":69,"y":536,"width":824,"height":12}},{"id":"62472b84-854b-4636-87d2-91ef549fd01b","block_type":"box","text":"quality of both the activist’s and management’s plans; and the qualifications of each par ty’s candidates. We evaluate","page_number":195,"box":{"x":69,"y":551,"width":839,"height":12}},{"id":"96b833db-dfa4-4f26-b038-0c2b021b6769","block_type":"box","text":"each contested situation by assessing the potential financial outcome for our clients as minority shareholders.","page_number":195,"box":{"x":69,"y":566,"width":788,"height":11}},{"id":"69a5c364-aabb-4340-b25a-3c47e006a7e6","block_type":"box","text":"We may suppor t board candidates nominated by a shareholder activist if BAIS, in its independent judgment, or","page_number":195,"box":{"x":101,"y":585,"width":789,"height":11}},{"id":"c722c39d-de57-4a03-972c-2e998ba4d94a","block_type":"box","text":"the relevant por tfolio manager has determined that there is a case for change to enhance shareholder value, or if the","page_number":195,"box":{"x":68,"y":600,"width":839,"height":11}},{"id":"0c319381-4671-448b-8042-d0ae1fff01cc","block_type":"box","text":"incumbent board members do not demonstrate the relevant skills and exper tise or have a poor track record of","page_number":195,"box":{"x":70,"y":614,"width":786,"height":11}},{"id":"bffc0544-c1b3-4452-a1d6-1bb927f4fc81","block_type":"box","text":"protecting shareholders’ interests.","page_number":195,"box":{"x":70,"y":630,"width":244,"height":11}},{"id":"4dc9f810-453a-4c36-b974-0121724f167f","block_type":"box","text":"Significant shareholders and related party transactions","page_number":195,"box":{"x":68,"y":652,"width":403,"height":11}},{"id":"9925571c-638a-4172-87d6-02c676efdb81","block_type":"box","text":"Boards of companies with affiliated shareholders or directors should give equitable consideration to the","page_number":195,"box":{"x":102,"y":670,"width":740,"height":12}},{"id":"51de966e-050a-4368-b987-a56200d8b62d","block_type":"box","text":"interests of all shareholders when evaluating related par ty transactions.","page_number":195,"box":{"x":70,"y":685,"width":511,"height":12}},{"id":"4415ff3b-5fd9-48d2-a37f-e974c6a2d8ef","block_type":"box","text":"We consider it good practice for transactions with related par ties, such as significant shareholders or companies","page_number":195,"box":{"x":101,"y":704,"width":805,"height":11}},{"id":"a69a62aa-88ea-4864-a23b-1db07fe2b55d","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":195,"box":{"x":69,"y":719,"width":832,"height":11}},{"id":"c4c70b53-bf1b-4471-b180-db6d4e32eb66","block_type":"box","text":"have been agreed with a non-related par ty. In our view, such transactions should be reviewed and approved by the","page_number":195,"box":{"x":69,"y":734,"width":812,"height":11}},{"id":"97cf0194-cc91-4cad-b2f5-c4b49a1c700c","block_type":"box","text":"independent members of the board, and if voted on, only disinterested shareholders should vote.","page_number":195,"box":{"x":70,"y":748,"width":692,"height":12}},{"id":"a609c078-e6d9-4877-bc5c-0447939d7972","block_type":"box","text":"CORPORATE REPORTING, RISK MANAGEMENT AND AUDIT","page_number":195,"box":{"x":274,"y":779,"width":430,"height":10}},{"id":"314cbc70-3072-44be-b904-2e26f9abae2b","block_type":"box","text":"Investors depend on corporate repor ting, both regulatory and voluntary, to understand a company’s strategy, its","page_number":195,"box":{"x":102,"y":798,"width":796,"height":11}},{"id":"6e27d6db-4b6f-4720-b75a-468c83e6d287","block_type":"box","text":"implementation and financial per formance, as well as to assess the quality of management and operations and","page_number":195,"box":{"x":70,"y":812,"width":795,"height":12}},{"id":"f0aed759-f781-4485-9006-1d4dbf2bd31b","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":195,"box":{"x":70,"y":827,"width":779,"height":11}},{"id":"ed7ce842-8513-4190-8aed-3f5c9bc14e3d","block_type":"box","text":"oversee corporate repor ting and the policies and procedures underpinning the internal audit function and external","page_number":195,"box":{"x":69,"y":842,"width":809,"height":11}},{"id":"cd992091-2365-4682-87da-6c220339026a","block_type":"box","text":"audit.","page_number":195,"box":{"x":69,"y":857,"width":38,"height":9}},{"id":"f54086b4-29ba-4177-bb84-65d0e3501e7e","block_type":"box","text":"A company’s financial repor ting should provide decision-useful information for investors, and other stakeholders,","page_number":195,"box":{"x":101,"y":875,"width":803,"height":12}},{"id":"8466caa2-5e26-4bc6-aaf9-a46188605c79","block_type":"box","text":"on its financial per formance and position. It should provide an accurate and balanced assessment of the risks and","page_number":195,"box":{"x":69,"y":890,"width":819,"height":11}},{"id":"734d4b67-4dd8-4066-9dbf-384ec141fcbc","block_type":"box","text":"oppor tunities the company faces in realizing its long-term strategy. Accordingly, the assumptions made by","page_number":195,"box":{"x":69,"y":905,"width":752,"height":12}},{"id":"e221e14e-aef7-4d00-a225-1eb7932cd2b7","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":195,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"aa83d082-a754-460b-b1cc-d701c7f4ac92","block_type":"box","text":"Global Engagement and Voting Guidelines | 10","page_number":195,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"a6710a14-c454-46a4-b48f-008e37d21608","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":195,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"6edce604-de7b-4549-9bb2-3715d0f538dd","block_type":"box","text":"management and reviewed by the auditor in preparing the financial statements should be reasonable and justified.","page_number":196,"box":{"x":69,"y":45,"width":817,"height":11}},{"id":"80ed46ef-4784-4d24-a261-0ba0aac3a4aa","block_type":"box","text":"Financial statements should be prepared in accordance with globally developed repor ting standards and any","page_number":196,"box":{"x":70,"y":60,"width":771,"height":11}},{"id":"0432da0d-a0da-41a0-a51e-c550df7140ce","block_type":"box","text":"divergence from generally accepted accounting principles should be explained in detail and justified. Accounting","page_number":196,"box":{"x":69,"y":74,"width":796,"height":12}},{"id":"422d14cb-42bd-466c-ab01-733095d0f715","block_type":"box","text":"restatements should be explained in detail and any remedial actions, and the implications of these, disclosed.","page_number":196,"box":{"x":69,"y":89,"width":788,"height":11}},{"id":"261bb5a8-96d6-4cb9-a5f3-75f3f30e875e","block_type":"box","text":"In this context, audit committees play a vital role in a company’s financial repor ting system by providing","page_number":196,"box":{"x":102,"y":108,"width":739,"height":11}},{"id":"e39bd6dd-1859-4623-b67d-e5aa103dcace","block_type":"box","text":"independent oversight of the accounts, material financial and, where appropriate to the jurisdiction, non-financial","page_number":196,"box":{"x":70,"y":123,"width":801,"height":11}},{"id":"b640cb0c-2a3c-4b9b-a8a9-f4e02b65fa65","block_type":"box","text":"information, internal control frameworks and Enterprise Risk Management systems. In our view, effective audit","page_number":196,"box":{"x":70,"y":138,"width":787,"height":11}},{"id":"e7daf123-cb59-4fc6-a1f2-1c0dde0b6033","block_type":"box","text":"committee oversight strengthens the quality and reliability of a company’s financial statements and provides an","page_number":196,"box":{"x":69,"y":152,"width":795,"height":12}},{"id":"0948b8f2-1166-4161-9ec9-184d1761cb37","block_type":"box","text":"impor tant level of reassurance to shareholders. Audit committees should have a procedure in place for assessing the","page_number":196,"box":{"x":70,"y":167,"width":838,"height":12}},{"id":"69a4176e-bb14-4373-a9db-879887a2c219","block_type":"box","text":"independence of the auditor and the quality of the external audit process annually.","page_number":196,"box":{"x":70,"y":182,"width":585,"height":11}},{"id":"f40de805-600e-4055-8d28-a977c0f62e0e","block_type":"box","text":"Similarly, we encourage companies to disclose material sustainability-related factors that are integral to how a","page_number":196,"box":{"x":102,"y":201,"width":784,"height":11}},{"id":"6e2bc6ac-648a-4666-a588-26a86fe17ad5","block_type":"box","text":"company manages risks or generates revenue. BAIS finds it helpful to our understanding when companies provide","page_number":196,"box":{"x":69,"y":216,"width":812,"height":11}},{"id":"b240bffa-d033-4c49-945d-a69c3995b288","block_type":"box","text":"robust, standardized disclosures on their material sustainability-related risks and oppor tunities. The International","page_number":196,"box":{"x":69,"y":231,"width":806,"height":11}},{"id":"855bb79d-854f-475b-aaad-40a8c32c3d08","block_type":"box","text":"Sustainability Standards Board (ISSB) is one entity working to meet these objectives through its repor ting standards,","page_number":196,"box":{"x":69,"y":246,"width":832,"height":11}},{"id":"fa51a5a5-a595-403c-be80-653249683218","block_type":"box","text":"which may be helpful to companies in preparing such repor ts.","page_number":196,"box":{"x":68,"y":260,"width":440,"height":12}},{"id":"0f08aaaa-ee90-4497-910f-9cc346490758","block_type":"box","text":"9","page_number":196,"box":{"x":509,"y":261,"width":5,"height":4}},{"id":"cdde46fd-06cd-4dfd-95f8-6036ce2c88e4","block_type":"box","text":"However, we do not mandate any specific disclosure","page_number":196,"box":{"x":520,"y":260,"width":372,"height":11}},{"id":"3be79945-b002-40d6-83af-8e8642c295b0","block_type":"box","text":"framework, and note that companies in cer tain jurisdictions are subject to mandatory repor ting requirements under","page_number":196,"box":{"x":68,"y":275,"width":824,"height":11}},{"id":"20ce8733-ae85-4d5c-8682-b2fde41c1611","block_type":"box","text":"standards specified by policy makers.","page_number":196,"box":{"x":69,"y":290,"width":267,"height":11}},{"id":"3ec21f16-a775-4380-bcb1-968dc907a940","block_type":"box","text":"10","page_number":196,"box":{"x":338,"y":290,"width":9,"height":5}},{"id":"388b7e38-d956-40c3-9893-892273fe6d9f","block_type":"box","text":"Companies should establish robust risk management and internal control processes appropriate to the","page_number":196,"box":{"x":102,"y":309,"width":735,"height":11}},{"id":"02a1ea28-5c04-4d29-b176-f1909d74daaa","block_type":"box","text":"company’s business, risk tolerance, and regulatory environment. A credible whistleblowing system for employees,","page_number":196,"box":{"x":69,"y":323,"width":810,"height":12}},{"id":"10e19bd6-87b2-495e-ad07-9d1513c0c6fd","block_type":"box","text":"and potentially other stakeholders, can be a useful mechanism for ensuring that senior management and the board","page_number":196,"box":{"x":69,"y":338,"width":822,"height":12}},{"id":"b9eeeff7-0203-435d-9d87-c387457268d9","block_type":"box","text":"are aware of potential misconduct or breaches in risk management and internal control processes.","page_number":196,"box":{"x":69,"y":353,"width":704,"height":12}},{"id":"1efaba5e-4800-4aae-85ac-a23051452534","block_type":"box","text":"A comprehensive audit conducted by an independent audit firm contributes to investor confidence in the quality","page_number":196,"box":{"x":101,"y":372,"width":794,"height":11}},{"id":"27040c90-c2c6-460f-8f20-7e94585ead8e","block_type":"box","text":"of corporate repor ting. It is helpful when the audit repor t gives some insight into the scope and focus of the audit, as","page_number":196,"box":{"x":69,"y":387,"width":836,"height":11}},{"id":"be7e8320-d9d7-4e25-abbe-3bc8cd046a18","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":196,"box":{"x":68,"y":402,"width":838,"height":11}},{"id":"76d4b6c3-1e98-44bb-9f90-a4cac75a5563","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":196,"box":{"x":69,"y":416,"width":773,"height":11}},{"id":"e41c9656-558d-41b2-8be7-798f0456dc79","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":196,"box":{"x":69,"y":431,"width":804,"height":12}},{"id":"707bbf28-5445-4553-a1fa-a4eafbd68392","block_type":"box","text":"audit. The audit committee should explain its position on auditor tenure and how it confirmed that the auditor","page_number":196,"box":{"x":69,"y":446,"width":780,"height":11}},{"id":"293be929-95e6-4b11-8311-b69043fa8978","block_type":"box","text":"remained independent.","page_number":196,"box":{"x":69,"y":461,"width":163,"height":11}},{"id":"62a97c4b-e2b2-45db-98c3-9e375012a967","block_type":"box","text":"We may vote against the election of the responsible directors if corporate repor ting is insufficient or there are","page_number":196,"box":{"x":101,"y":480,"width":783,"height":11}},{"id":"c86e30eb-584c-45e8-838e-f7789f1e288f","block_type":"box","text":"material misstatements in financial repor ts. In markets where relevant, we may vote against a proposal to approve","page_number":196,"box":{"x":69,"y":495,"width":819,"height":11}},{"id":"e281eb0e-76a5-4c8e-ac95-1bd70786fee2","block_type":"box","text":"the financial statements or the discharge of the board when we are concerned about the quality of corporate","page_number":196,"box":{"x":68,"y":509,"width":774,"height":12}},{"id":"ccb512a2-6c20-4809-a557-f6abe9324504","block_type":"box","text":"repor ting or the audit. We may vote against proposals to appoint the auditor, ratify the audit repor t, or approve the","page_number":196,"box":{"x":69,"y":524,"width":816,"height":12}},{"id":"1bed5b75-ae26-4aa6-84bc-ccf719fb976b","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":196,"box":{"x":69,"y":539,"width":779,"height":11}},{"id":"15d27acc-a364-4eac-8f01-edfd726e86f6","block_type":"box","text":"misstatements in financial repor ts and the board has not established reasonable remediation plans.","page_number":196,"box":{"x":69,"y":554,"width":718,"height":11}},{"id":"f66a4734-7aa3-40dd-8a1c-00e3af822785","block_type":"box","text":"SHAREHOLDER RIGHTS AND PROTECTIONS","page_number":196,"box":{"x":329,"y":584,"width":319,"height":9}},{"id":"11308539-6c1d-436c-8bf8-fbb0b5dfdee1","block_type":"box","text":"General shareholder meetings","page_number":196,"box":{"x":69,"y":607,"width":217,"height":11}},{"id":"220809d6-c674-4aea-9647-fd57045eafb3","block_type":"box","text":"Companies normally have an annual general meeting of shareholders at which routine and non-routine items of","page_number":196,"box":{"x":102,"y":625,"width":792,"height":12}},{"id":"28111885-a4f0-49fe-b5c6-d81f8b819b4f","block_type":"box","text":"business are discussed and voted on by shareholders in attendance or submitting proxy votes. Companies should","page_number":196,"box":{"x":69,"y":640,"width":812,"height":11}},{"id":"c16903fa-cd0c-4271-acf3-84c26f69dba8","block_type":"box","text":"disclose materials relevant to the shareholder meeting sufficiently in advance so that shareholders can take them","page_number":196,"box":{"x":69,"y":655,"width":813,"height":11}},{"id":"70587178-2ec0-401e-b00b-9145854f1c36","block_type":"box","text":"into consideration in their voting decisions. Many companies offer shareholders the option of par ticipating in the","page_number":196,"box":{"x":70,"y":670,"width":801,"height":11}},{"id":"e931a190-b721-4303-b9d1-2f4e15a6b66c","block_type":"box","text":"meeting vir tually which, whilst welcome, should not limit the rights of shareholders to par ticipate as they would during","page_number":196,"box":{"x":69,"y":685,"width":841,"height":11}},{"id":"a61b0636-eea7-423a-bac8-94132f88e0a3","block_type":"box","text":"an in-person meeting.","page_number":196,"box":{"x":69,"y":700,"width":152,"height":11}},{"id":"f93f0933-d110-473b-8253-7f058cdfc378","block_type":"box","text":"We may vote against directors when materials related to the business of the shareholder meeting are not","page_number":196,"box":{"x":101,"y":718,"width":752,"height":12}},{"id":"e2545fc6-b61f-4cba-a802-b6fa4484eec4","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":196,"box":{"x":70,"y":733,"width":821,"height":11}},{"id":"ed6ba7e9-1a0a-44a8-9adc-cb2430a4e2e6","block_type":"box","text":"may vote against directors if the format of the shareholder meeting does not accommodate reasonable shareholder","page_number":196,"box":{"x":69,"y":748,"width":825,"height":11}},{"id":"1368a8d1-7b56-4801-962f-9084ac170ae4","block_type":"box","text":"par ticipation.","page_number":196,"box":{"x":70,"y":763,"width":91,"height":11}},{"id":"7f7d6aab-69e3-44ec-b98a-40203ce19f10","block_type":"box","text":"9","page_number":196,"box":{"x":69,"y":793,"width":4,"height":4}},{"id":"0dfdee59-a601-4587-8d1c-06639533babc","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Repor ting Standards","page_number":196,"box":{"x":93,"y":792,"width":744,"height":11}},{"id":"1065af89-dd9f-4087-8a56-b48f8cea5187","block_type":"box","text":"(IFRS) Foundation. Please refer to the IFRS website to learn more about the framework and standards S1","page_number":196,"box":{"x":94,"y":807,"width":748,"height":11}},{"id":"e5695694-6eea-4e7f-9a2e-706467db5ca3","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":196,"box":{"x":94,"y":822,"width":778,"height":12}},{"id":"388139e8-c0e0-44d3-95f5-8d84e5c31eb7","block_type":"box","text":"Disclosures.”","page_number":196,"box":{"x":94,"y":838,"width":93,"height":8}},{"id":"7435218b-66d6-476f-9ad1-4afcd8830800","block_type":"box","text":"10","page_number":196,"box":{"x":69,"y":856,"width":9,"height":4}},{"id":"bd0924ef-3219-44f7-9fc6-22bf01a880e9","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":196,"box":{"x":93,"y":858,"width":810,"height":11}},{"id":"9a148930-625b-482d-a3d1-533771f233ea","block_type":"box","text":"See, for examples, https://www.ifrs.org/newsandevents/news/2025/06/ifrsfoundationpublishesjurisdictional\r\nprofiles-issb-standards/ and https://finance.ec.europa.eu/capital-markets-union-and-financial-markets/companyrepor ting\r\nandaditing/companrepor ting/corporatesstainabilitrepor tingen","page_number":196,"box":{"x":94,"y":866,"width":804,"height":12}},{"id":"dbaac86a-a628-4b79-9b9f-2b42af896e29","block_type":"box","text":"p/ p//p/p\r\nrepor ting-and-auditing/company-repor ting/corporate-sustainability-repor ting_en.","page_number":196,"box":{"x":94,"y":876,"width":564,"height":11}},{"id":"edab441d-531f-49cd-b67f-c32705ec5701","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":196,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"fb75d159-7e20-4a3c-bf99-6868c9b26de3","block_type":"box","text":"Global Engagement and Voting Guidelines | 11","page_number":196,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"c159d961-3846-4f61-8d55-2f4cec95a42a","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":196,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a7bef0c9-4b18-456a-95d6-a805543a24dc","block_type":"box","text":"Bylaw amendments","page_number":197,"box":{"x":69,"y":45,"width":141,"height":11}},{"id":"1244370a-1702-4a05-a854-220daa07d379","block_type":"box","text":"We review bylaw amendments proposed by management on a case-by-case basis and will generally suppor t","page_number":197,"box":{"x":101,"y":64,"width":766,"height":11}},{"id":"6bd63de6-da9b-4571-beff-779f3cd14483","block_type":"box","text":"those that are aligned with the interests of minority shareholders. Any material changes to the bylaws should be","page_number":197,"box":{"x":68,"y":78,"width":800,"height":11}},{"id":"dab5ce3f-9cd0-4534-85d6-f387e879cb4d","block_type":"box","text":"explained in detail and put to a shareholder vote.","page_number":197,"box":{"x":69,"y":93,"width":349,"height":11}},{"id":"3fb9a876-178f-4270-a5ec-87201691093b","block_type":"box","text":"We may vote against bylaw amendments that reduce shareholder rights and protections or introduce additional","page_number":197,"box":{"x":101,"y":112,"width":790,"height":11}},{"id":"010a35a6-9477-4db9-bff6-e19533df4d25","block_type":"box","text":"burdens. We may vote against directors if material changes are made to the bylaws without shareholder approval.","page_number":197,"box":{"x":69,"y":126,"width":810,"height":12}},{"id":"1eb049b1-c235-4a60-8f44-eba95c6241b3","block_type":"box","text":"If not provided for in the relevant corporate law, company bylaws should allow shareholders, individually or as a","page_number":197,"box":{"x":102,"y":145,"width":790,"height":11}},{"id":"d38a6bee-0182-4645-95a3-415ec7c98146","block_type":"box","text":"group, with a meaningful shareholding, the right to call a special meeting of shareholders. The shareholding required","page_number":197,"box":{"x":68,"y":160,"width":831,"height":11}},{"id":"25d74406-7da5-4636-98a8-adbaebf1cf0d","block_type":"box","text":"to exercise this right should balance its utility with the cost to the company of holding special meetings.","page_number":197,"box":{"x":68,"y":175,"width":740,"height":11}},{"id":"3df4c077-8320-499e-8b96-72ee63fc919d","block_type":"box","text":"If not provided for in the relevant corporate law, company bylaws should allow shareholders, individually or as a","page_number":197,"box":{"x":102,"y":193,"width":790,"height":12}},{"id":"7b953f46-a415-402a-b863-dcffaf98e861","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":197,"box":{"x":68,"y":208,"width":834,"height":12}},{"id":"2ab56f55-6fe1-487e-9555-6905afb0c5f1","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":197,"box":{"x":69,"y":223,"width":758,"height":12}},{"id":"7a5a1d89-dd68-49a9-9260-29dc5afb44b9","block_type":"box","text":"nomination process.","page_number":197,"box":{"x":69,"y":238,"width":143,"height":11}},{"id":"3f344c96-ee78-4d39-a2a4-7d06c74294d4","block_type":"box","text":"Whilst we would not use either of these rights ourselves, we see them as impor tant accountability mechanisms.","page_number":197,"box":{"x":101,"y":257,"width":799,"height":11}},{"id":"16bd28ab-b369-4a26-b8d0-f98167e07c71","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":197,"box":{"x":68,"y":272,"width":810,"height":11}},{"id":"69c1ced2-b21b-4175-bce1-29a418e2bb79","block_type":"box","text":"Change of domicile","page_number":197,"box":{"x":69,"y":294,"width":139,"height":11}},{"id":"cd2ab8bd-3807-4f49-8539-97f88f33a7ea","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":197,"box":{"x":101,"y":313,"width":778,"height":11}},{"id":"afdd0e62-6e0f-4fb2-947a-be31d2d9bdd1","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":197,"box":{"x":69,"y":328,"width":766,"height":11}},{"id":"54fe0ea2-03f9-41d9-89b2-3e901f062c35","block_type":"box","text":"immaterial.","page_number":197,"box":{"x":70,"y":343,"width":77,"height":8}},{"id":"4acd45c6-82f6-467e-b8c6-6e106d050f80","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":197,"box":{"x":101,"y":361,"width":777,"height":11}},{"id":"8626c74b-35c2-4776-ad7b-1c66b8823175","block_type":"box","text":"with our clients’ financial interests.","page_number":197,"box":{"x":68,"y":376,"width":249,"height":9}},{"id":"98dfbba8-5533-45b3-b13d-4baca865cd88","block_type":"box","text":"Changes to a company’s purpose or the nature of its business","page_number":197,"box":{"x":69,"y":398,"width":452,"height":11}},{"id":"0899e2aa-adcd-4bc2-9c26-38f5e4d8d055","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":197,"box":{"x":102,"y":417,"width":803,"height":11}},{"id":"5727bf38-8d78-4885-8587-6fe5759ee119","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":197,"box":{"x":70,"y":432,"width":829,"height":11}},{"id":"5f3d576d-0e9f-4ffd-a053-f6631b2b1331","block_type":"box","text":"on the suitability of a company for their investment strategy or por tfolio.","page_number":197,"box":{"x":69,"y":447,"width":511,"height":11}},{"id":"7845ae61-8ab1-4555-9033-f8ca550701a3","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":197,"box":{"x":101,"y":465,"width":792,"height":12}},{"id":"c78ec752-8653-44a5-967a-877318a74a96","block_type":"box","text":"the board has not provided a credible argument for change.","page_number":197,"box":{"x":68,"y":480,"width":424,"height":12}},{"id":"fec4d2e0-ec4c-4f84-84fa-981a07be8ece","block_type":"box","text":"SHAREHOLDER PROPOSALS","page_number":197,"box":{"x":385,"y":510,"width":207,"height":9}},{"id":"9cbb3310-faad-4ca9-ab34-6c2edb73dca9","block_type":"box","text":"Shareholders in many markets, who meet cer tain eligibility criteria, have the right to submit proposals to the","page_number":197,"box":{"x":102,"y":529,"width":772,"height":11}},{"id":"33d19cfd-99a0-4c9e-ba01-00de4013a70d","block_type":"box","text":"general shareholder meeting asking a company to take a par ticular course of action subject to the proposal being","page_number":197,"box":{"x":68,"y":544,"width":811,"height":11}},{"id":"e0904fb1-9007-4cb2-8cd5-12aa8a209cea","block_type":"box","text":"suppor ted by a majority of votes cast at the meeting. The topics raised can address a range of matters that may be","page_number":197,"box":{"x":69,"y":559,"width":824,"height":11}},{"id":"ee2f1855-9bc3-4a19-a993-ff64e97ce901","block_type":"box","text":"relevant to a company’s business.","page_number":197,"box":{"x":69,"y":574,"width":243,"height":11}},{"id":"4ddaa76f-a860-4e0d-8e95-c5653d558eaa","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":197,"box":{"x":101,"y":592,"width":730,"height":11}},{"id":"07e92b56-878a-47da-8f4e-c2727282894d","block_type":"box","text":"company’s business and its current approach, whether the actions sought are consistent with shareholders’","page_number":197,"box":{"x":69,"y":607,"width":772,"height":11}},{"id":"fad217fb-7c6c-40cb-9be3-c5e26e476a07","block_type":"box","text":"interests, and what impact the proposal being acted upon might have on financial per formance.","page_number":197,"box":{"x":70,"y":622,"width":681,"height":11}},{"id":"4f7c2fd7-eff0-4300-b3a9-d12b29e75770","block_type":"box","text":"Our general approach where we have concerns about a company’s governance, disclosures or per formance is to","page_number":197,"box":{"x":102,"y":641,"width":801,"height":11}},{"id":"9d515d88-97d3-4033-bdcd-3e64305e5129","block_type":"box","text":"engage to understand the apparent difference in perspective. If we are concerned a company is not acting in","page_number":197,"box":{"x":69,"y":656,"width":774,"height":11}},{"id":"1f1a3911-9e44-4564-93a0-6cf8a15ca30e","block_type":"box","text":"shareholders’ financial interests, we may vote against the election of directors. We may suppor t a relevant","page_number":197,"box":{"x":69,"y":670,"width":761,"height":12}},{"id":"b4a382dc-246c-4489-9a3a-93d536d57713","block_type":"box","text":"shareholder proposal if doing so is aligned with our clients’ financial interests. We generally do not suppor t","page_number":197,"box":{"x":69,"y":685,"width":764,"height":12}},{"id":"695b99d1-9bc6-4c5c-a559-eb04c4ffbcc9","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":197,"box":{"x":69,"y":700,"width":785,"height":11}},{"id":"91526524-3511-4c66-9aa6-a04455209401","block_type":"box","text":"operations, or are unrelated to how a company manages risk or generates financial returns.","page_number":197,"box":{"x":69,"y":715,"width":653,"height":11}},{"id":"0fa00739-b5c9-4b2e-ae77-7a85fa4a65a9","block_type":"box","text":"BlackRock is subject to rules, regulations, agency guidance and contractual agreements that place restrictions","page_number":197,"box":{"x":102,"y":734,"width":788,"height":11}},{"id":"43dd7f0b-c3a8-457e-a343-5e626b909923","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":197,"box":{"x":69,"y":748,"width":822,"height":12}},{"id":"a4e8ec9b-0084-461d-ad33-f19cbf08eef6","block_type":"box","text":"ability to submit shareholder proposals. We do not submit shareholder proposals but can vote, on behalf of clients","page_number":197,"box":{"x":69,"y":763,"width":817,"height":12}},{"id":"b5613dd6-244e-4929-b299-0ec81f56f28d","block_type":"box","text":"who authorize us to do so, on proposals put for th by others.","page_number":197,"box":{"x":68,"y":778,"width":428,"height":11}},{"id":"0e5f7260-6d3b-4e2f-a3d9-489deef8f9c3","block_type":"box","text":"CORPORATE POLITICAL ACTIVITIES","page_number":197,"box":{"x":359,"y":808,"width":260,"height":9}},{"id":"77e93fcf-9975-4fc3-9fc7-eae2b0ec7b50","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":197,"box":{"x":101,"y":827,"width":795,"height":11}},{"id":"9ca1fafd-14eb-4187-a8cb-454358965e9a","block_type":"box","text":"in which they engage. When a corporation repor ts material financial risk related to policy and or regulatory changes,","page_number":197,"box":{"x":70,"y":842,"width":824,"height":11}},{"id":"81307cf6-411e-4880-a6d1-df835989dfa3","block_type":"box","text":"BAIS may seek to understand how it is addressing the material risk identified. We seek to understand how","page_number":197,"box":{"x":70,"y":857,"width":757,"height":11}},{"id":"b773b48d-2a17-4b78-89bb-922c7e634cfd","block_type":"box","text":"companies engage in corporate political activities and ensure that their par ticipation is consistent with their public","page_number":197,"box":{"x":69,"y":872,"width":814,"height":11}},{"id":"ae2a1329-2ebe-4e9e-9c4b-ce6d4f010015","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":197,"box":{"x":69,"y":887,"width":780,"height":11}},{"id":"30fc91eb-d9ea-44fa-9993-150812068d71","block_type":"box","text":"approach taken by management on corporate political activities as there can be reputational risks arising from","page_number":197,"box":{"x":69,"y":901,"width":786,"height":12}},{"id":"dd1a9c79-be09-448a-a66d-7852c8c7a31c","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":197,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"22eac4aa-c446-4d5e-a3d8-3f10b545c94b","block_type":"box","text":"Global Engagement and Voting Guidelines | 12","page_number":197,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"205bc3f4-c139-45ee-8433-b77bb6e3f521","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":197,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"8b3ecfa0-1eb4-4481-8547-a34fdbd52f35","block_type":"box","text":"inconsistencies between a company’s policy engagement and stated policy positions. Companies should, as a","page_number":198,"box":{"x":70,"y":45,"width":786,"height":11}},{"id":"71faf86f-37f8-42f4-b95e-1daf6af96fc0","block_type":"box","text":"minimum, meet all regulatory disclosure requirements on political activities. We may engage a company where we","page_number":198,"box":{"x":69,"y":60,"width":812,"height":11}},{"id":"1b2d96af-0f44-44fb-9288-2beacf690067","block_type":"box","text":"would like to better understand its approach to policy engagement, where relevant.","page_number":198,"box":{"x":68,"y":75,"width":590,"height":11}},{"id":"6c89ffe1-5049-4231-8820-f38dea1d2aae","block_type":"box","text":"To mitigate the risk of inconsistencies, companies may wish to assess the alignment between their policy","page_number":198,"box":{"x":101,"y":93,"width":753,"height":11}},{"id":"e2a714f8-86d9-4bf2-bca5-7fb49c16e82c","block_type":"box","text":"priorities and the policy positions of the trade associations of which they are active members and any engagements","page_number":198,"box":{"x":70,"y":108,"width":823,"height":11}},{"id":"773153a6-0069-4471-b310-91d3d804d875","block_type":"box","text":"under taken by trade associations on behalf of members.","page_number":198,"box":{"x":69,"y":123,"width":404,"height":11}},{"id":"153dff09-5b1e-4201-929e-2b071d73568f","block_type":"box","text":"We may suppor t a relevant shareholder proposal, or vote against directors, where a company’s disclosures are","page_number":198,"box":{"x":101,"y":142,"width":793,"height":11}},{"id":"0240531f-dd7e-477e-8fd5-4588ee9a2ba5","block_type":"box","text":"insufficient to address the material risk it has identified.","page_number":198,"box":{"x":70,"y":156,"width":400,"height":9}},{"id":"ab020385-6600-41d0-8996-efe2352e0598","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":198,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"8f2b5b3e-6c6b-4ae0-a6b2-50ceca0ef66b","block_type":"box","text":"Global Engagement and Voting Guidelines | 13","page_number":198,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"e6480a97-6b10-405e-8084-920e35c8ff27","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":198,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"d90d2f53-8730-481c-a46a-cd75546800ea","block_type":"box","text":"MATERIAL SUSTAINABILITY- RELATED RISKS AND OPPORTUNITIES","page_number":199,"box":{"x":245,"y":45,"width":489,"height":9}},{"id":"3b00be66-2e71-478d-94d8-0873d9bbf646","block_type":"box","text":"We seek to understand how companies manage the material risks and oppor tunities inherent in their business","page_number":199,"box":{"x":101,"y":64,"width":790,"height":11}},{"id":"a73d29cf-593e-4b15-892a-d59450ad3ecd","block_type":"box","text":"operations. In our experience, sustainability-related factors","page_number":199,"box":{"x":69,"y":78,"width":418,"height":12}},{"id":"b289de92-5a9a-44d5-8710-0948ace56cb4","block_type":"box","text":"11","page_number":199,"box":{"x":488,"y":79,"width":9,"height":4}},{"id":"eaa0ff68-c415-4d76-baaa-9451c9bd61c4","block_type":"box","text":"that are relevant to a company’s business or material to","page_number":199,"box":{"x":502,"y":79,"width":402,"height":11}},{"id":"ca08a92a-30ff-40bb-bd3b-338fd365f47b","block_type":"box","text":"its financial per formance, are generally operational considerations embedded into day-to-day management systems.","page_number":199,"box":{"x":70,"y":93,"width":824,"height":12}},{"id":"e120f1a5-e7d6-4366-8547-02d42f4fc7d5","block_type":"box","text":"Cer tain sustainability issues may also inform long-term strategic planning, for example, investing in product","page_number":199,"box":{"x":69,"y":108,"width":766,"height":11}},{"id":"52211281-7646-4ae5-9137-5838a7f29f2e","block_type":"box","text":"innovation in anticipation of changing consumer demand or adapting supply chains in response to changing","page_number":199,"box":{"x":70,"y":123,"width":764,"height":11}},{"id":"e3ecbd42-b9f8-4acc-a5a1-9ffe09da8591","block_type":"box","text":"regulatory requirements.","page_number":199,"box":{"x":69,"y":138,"width":174,"height":11}},{"id":"bb515b46-190c-41e6-a88a-6b6379b147af","block_type":"box","text":"We recognize that the specific sustainability-related factors that may be financially material or business relevant","page_number":199,"box":{"x":101,"y":156,"width":798,"height":12}},{"id":"3a518019-6ab3-427c-8351-b41bc9fba90a","block_type":"box","text":"will vary by company business model, sector, key markets, and time horizon, amongst other considerations. From","page_number":199,"box":{"x":68,"y":172,"width":809,"height":11}},{"id":"c84a5f85-d969-45af-bd8c-4edfae44b65f","block_type":"box","text":"company disclosures and our engagement, we aim to understand how management is identifying, assessing and","page_number":199,"box":{"x":69,"y":186,"width":803,"height":12}},{"id":"26f54e70-ff82-4472-891f-f1ae2611449e","block_type":"box","text":"integrating material sustainability-related risks and oppor tunities into their business decision-making and practices.","page_number":199,"box":{"x":70,"y":201,"width":820,"height":11}},{"id":"d93cf291-8347-4cd5-9ecb-348bdc2e2cbd","block_type":"box","text":"Doing so helps us under take a more holistic assessment of a company’s potential financial per formance and the","page_number":199,"box":{"x":70,"y":216,"width":808,"height":11}},{"id":"57c55310-9ce6-43c3-a2ab-7aad0d96e2ed","block_type":"box","text":"likely risk-adjusted returns of an investment.","page_number":199,"box":{"x":70,"y":231,"width":313,"height":11}},{"id":"eedaf962-9fc9-4993-85f4-f17a4fdc2ddc","block_type":"box","text":"We may vote against directors or suppor t a relevant shareholder proposal if we have concerns about how a","page_number":199,"box":{"x":101,"y":249,"width":764,"height":12}},{"id":"596e1795-4ba9-49a1-b7cb-e7d5e058e4c2","block_type":"box","text":"company is managing or disclosing its approach to material sustainability-related risks that may impact financial","page_number":199,"box":{"x":69,"y":264,"width":798,"height":12}},{"id":"43db8227-ddc2-4cf6-90b4-478228ac84bb","block_type":"box","text":"returns.","page_number":199,"box":{"x":69,"y":280,"width":54,"height":8}},{"id":"0ffe655a-d49f-44ca-abeb-eb591e10d375","block_type":"box","text":"KEY STAKEHOLDERS","page_number":199,"box":{"x":414,"y":309,"width":151,"height":9}},{"id":"07a8c5ce-d956-4e80-8b99-ae7aaeeed463","block_type":"box","text":"In our view, companies should understand and take into consideration the interests of the various par ties on","page_number":199,"box":{"x":102,"y":328,"width":774,"height":11}},{"id":"c30d4d61-0248-4229-a389-7a0c9d83f577","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":199,"box":{"x":68,"y":343,"width":826,"height":11}},{"id":"93d1181a-82a0-44a1-a216-c0f5ff00eeb3","block_type":"box","text":"what is material to their business and long-term financial per formance. For many companies, key stakeholders","page_number":199,"box":{"x":68,"y":358,"width":790,"height":11}},{"id":"dd808706-403c-49a4-a024-0240e3479265","block_type":"box","text":"include employees, business par tners (such as suppliers and distributors), clients and consumers, regulators, and","page_number":199,"box":{"x":70,"y":373,"width":817,"height":11}},{"id":"d78e702c-255e-489d-9951-7b99c1bdef75","block_type":"box","text":"the communities in which they operate. Companies that appropriately balance the interests of investors and other","page_number":199,"box":{"x":68,"y":387,"width":813,"height":12}},{"id":"ef3e2f90-7865-401b-8133-1000f4c147fb","block_type":"box","text":"stakeholders are, in our experience, more likely to be financially resilient over time.","page_number":199,"box":{"x":69,"y":402,"width":592,"height":12}},{"id":"e30ac09e-d0e1-4db2-af0a-4a41b5afe39b","block_type":"box","text":"CLIMATE AND DECARBONIZATION INVESTMENT OBJECTIVES","page_number":199,"box":{"x":265,"y":432,"width":448,"height":9}},{"id":"c3b83b2d-8b53-47c4-bf21-7c719c8643b5","block_type":"box","text":"Cer tain active BlackRock funds have climate and decarbonization objectives in addition to financial objectives.","page_number":199,"box":{"x":102,"y":451,"width":784,"height":11}},{"id":"f2a3d4ab-2211-42b7-9228-02eb84ec071e","block_type":"box","text":"Consistent with the objectives of those investment strategies, our stewardship activity in relation to the holdings in","page_number":199,"box":{"x":69,"y":466,"width":818,"height":11}},{"id":"ef696633-180f-4c3d-acfc-006b66ec2ac6","block_type":"box","text":"those funds differs in some respects from BAIS’ benchmark guidelines, which are described above. Specifically, for","page_number":199,"box":{"x":68,"y":481,"width":823,"height":11}},{"id":"77507aca-3e8c-443d-9e32-f7647186ac04","block_type":"box","text":"those funds’ holdings, we look to investee companies to demonstrate that they are aligned with a decarbonization","page_number":199,"box":{"x":68,"y":496,"width":814,"height":11}},{"id":"32ea5968-66db-4bb5-adb3-e96bde381ecc","block_type":"box","text":"pathway that means their business model would be viable in a low-carbon economy,","page_number":199,"box":{"x":70,"y":511,"width":594,"height":11}},{"id":"6bf9ee28-48bd-4702-b9b5-665c20c91511","block_type":"box","text":"i.e.","page_number":199,"box":{"x":672,"y":511,"width":20,"height":9}},{"id":"d1905932-781e-4320-aaef-02b9ecc3eadf","block_type":"box","text":", one in which global","page_number":199,"box":{"x":694,"y":511,"width":144,"height":11}},{"id":"42c70545-e220-4aee-a2eb-e8ca4ce91d7a","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":199,"box":{"x":68,"y":526,"width":821,"height":11}},{"id":"845907f6-1612-448a-8de5-b5469360c039","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":199,"box":{"x":69,"y":540,"width":839,"height":12}},{"id":"4f44d75c-027b-497c-af34-fc2239faa3e3","block_type":"box","text":"accounts, these guidelines are only implemented upon explicit selection and approval by the applicable fund board or","page_number":199,"box":{"x":69,"y":555,"width":837,"height":12}},{"id":"523ece60-bffb-4777-9216-4bb328263f1e","block_type":"box","text":"client.","page_number":199,"box":{"x":69,"y":570,"width":41,"height":9}},{"id":"9515d979-2484-4743-9cc5-ab0a7fc80351","block_type":"box","text":"These decarbonization stewardship guidelines focus on companies which produce goods and services that","page_number":199,"box":{"x":101,"y":589,"width":761,"height":11}},{"id":"6dc61fdb-1c42-4afa-bbb4-f863ceda72ac","block_type":"box","text":"contribute to real world decarbonization or have a carbon intensive business model and face outsized impacts from","page_number":199,"box":{"x":69,"y":604,"width":821,"height":11}},{"id":"94b375b3-b1e6-48e1-bda5-b0541032fa11","block_type":"box","text":"the low carbon transition, based on repor ted and estimated scopes 1, 2, and 3 greenhouse gas emissions. These","page_number":199,"box":{"x":68,"y":619,"width":817,"height":11}},{"id":"ae9d97d0-0d5e-49ec-bc14-4473a2429940","block_type":"box","text":"companies should provide disclosures that set out their governance, strategy, risk management processes and","page_number":199,"box":{"x":69,"y":634,"width":792,"height":11}},{"id":"58978a6e-85c4-4542-bd0f-46e852a2b157","block_type":"box","text":"metrics and targets relevant to decarbonization. It is helpful to investors’ understanding when these disclosures","page_number":199,"box":{"x":69,"y":648,"width":799,"height":12}},{"id":"742c8f57-3546-460a-95cb-bea7336123a0","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":199,"box":{"x":70,"y":663,"width":812,"height":11}},{"id":"62d2a60b-0607-44a7-92f1-a268e5f2a22d","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":199,"box":{"x":68,"y":678,"width":831,"height":11}},{"id":"b50c272b-a829-4885-832e-0039db310f25","block_type":"box","text":"1 and 2 emissions.","page_number":199,"box":{"x":70,"y":693,"width":135,"height":9}},{"id":"f2d34726-3e1f-400d-9d73-5edcc52993f4","block_type":"box","text":"Under these climate- and decarbonization-specific guidelines, BAIS may recommend a vote against directors or","page_number":199,"box":{"x":102,"y":711,"width":788,"height":12}},{"id":"f8625f9c-4f97-427a-b9e1-3ac17d857c08","block_type":"box","text":"suppor t for a relevant shareholder proposal if a company does not appear to be adequately acting to address or","page_number":199,"box":{"x":69,"y":726,"width":800,"height":12}},{"id":"e4ea48c8-9b81-4458-97de-7fbd185d0b79","block_type":"box","text":"disclosing material climate-related risks, consistent with the parameters set out in these climate-and decarbonization","page_number":199,"box":{"x":69,"y":741,"width":839,"height":12}},{"id":"86a2e414-aece-4619-a315-29a0865b75ce","block_type":"box","text":"specific guidelines. We may recommend suppor ting shareholder proposals seeking information relevant to a","page_number":199,"box":{"x":69,"y":756,"width":771,"height":11}},{"id":"6a3f7c66-5337-4895-9e12-7a067513ee6c","block_type":"box","text":"11","page_number":199,"box":{"x":69,"y":786,"width":9,"height":4}},{"id":"894f3f7d-2126-4c60-a8a1-bcd7bb609cc5","block_type":"box","text":"By material sustainability-related risks and oppor tunities, we mean the drivers of risk and financial value creation in","page_number":199,"box":{"x":84,"y":785,"width":822,"height":11}},{"id":"00482322-96cb-4b65-b2ab-81ac1cef52c8","block_type":"box","text":"a company’s business model that have an environmental or social dependency or impact. Examples of environmental","page_number":199,"box":{"x":69,"y":800,"width":835,"height":12}},{"id":"327c618a-35c0-42a0-b60a-7fabf83b6e2e","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":199,"box":{"x":70,"y":816,"width":827,"height":11}},{"id":"1fd18498-9366-49c7-b1f3-58666779e45e","block_type":"box","text":"issues include, but are not limited to, human capital management, impacts on the communities in which a company","page_number":199,"box":{"x":70,"y":831,"width":826,"height":11}},{"id":"6598b730-affe-4041-bf96-eaef9e9ec04f","block_type":"box","text":"operates, customer loyalty, and relationships with regulators. It is our view that well-managed companies will","page_number":199,"box":{"x":69,"y":846,"width":773,"height":11}},{"id":"d4193075-0641-4d98-82be-cddf6c9f6d68","block_type":"box","text":"effectively evaluate and manage material sustainability-related risks and oppor tunities relevant to their businesses.","page_number":199,"box":{"x":69,"y":861,"width":823,"height":11}},{"id":"17d4e748-69f0-46df-a528-fe1a8c9a5fd6","block_type":"box","text":"Governance is the core means by which boards can oversee the creation of durable financial value over time.","page_number":199,"box":{"x":69,"y":876,"width":777,"height":11}},{"id":"cf8ec4cd-d314-43f2-b9b3-f62f3c8cdc55","block_type":"box","text":"Appropriate risk oversight of business-relevant and material sustainability-related considerations is a component of a","page_number":199,"box":{"x":68,"y":891,"width":833,"height":11}},{"id":"3a3f7bc0-7040-4f39-81cf-f9d9f6ac6d16","block_type":"box","text":"sound governance framework.","page_number":199,"box":{"x":69,"y":906,"width":212,"height":12}},{"id":"1173dbf8-b69e-4721-bb22-6e3f2c2aa7a2","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":199,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"9bdb19f0-e533-4b91-bd40-fec566bc9f3b","block_type":"box","text":"Global Engagement and Voting Guidelines | 14","page_number":199,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"38b071a3-701b-48af-a84d-685a97b66371","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":199,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2a455fa5-108a-403d-9d05-819e09a7708b","block_type":"box","text":"company’s stated low-carbon transition strategy or targets that the company does not currently provide and that","page_number":200,"box":{"x":69,"y":45,"width":798,"height":11}},{"id":"436a84cb-88cc-4733-9bf1-b296a34f395e","block_type":"box","text":"would be helpful to investment decision-making. We would not recommend suppor t for shareholder proposals that","page_number":200,"box":{"x":68,"y":59,"width":814,"height":12}},{"id":"2dd52036-e812-4fd0-a7da-ae8e0ccadfcc","block_type":"box","text":"seek to constrain board or management decision-making or direct specific business or strategic decisions. As under","page_number":200,"box":{"x":69,"y":74,"width":828,"height":12}},{"id":"4a4c37bd-ef70-436e-9eaa-757fb8246d54","block_type":"box","text":"the BAIS benchmark approach, the active por tfolio managers are ultimately responsible for voting consistent with","page_number":200,"box":{"x":68,"y":89,"width":807,"height":12}},{"id":"cdfb49a7-ec1d-42d1-9dd1-3bdb5754c024","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":200,"box":{"x":68,"y":104,"width":832,"height":11}},{"id":"94b0ec5d-2754-49ef-a5f2-1beb6bfd03eb","block_type":"box","text":"climate risk and the energy transition is under taken in line with BAIS’ benchmark guidelines.","page_number":200,"box":{"x":69,"y":119,"width":658,"height":11}},{"id":"f767c979-cc91-45d7-9077-ddf2efc4bc20","block_type":"box","text":"BlackRock Active Investment Stewardship","page_number":200,"box":{"x":69,"y":943,"width":311,"height":11}},{"id":"5570bfbf-c065-451f-ac24-1d4a2ac694d0","block_type":"box","text":"Global Engagement and Voting Guidelines | 15","page_number":200,"box":{"x":580,"y":942,"width":329,"height":13}},{"id":"df97807c-5c30-4535-a803-f04e670f2b0e","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":200,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"0a939f3d-2996-46cf-a369-ec627f9c114e","block_type":"box","text":"APPENDIX 1: HOW WE FULFILL AND OVERSEE OUR INVESTMENT STEWARDSHIP RESPONSIBILITIES FOR NON","page_number":201,"box":{"x":83,"y":45,"width":812,"height":9}},{"id":"2a94da8e-cb52-47ec-88d9-9180fb4da6cd","block_type":"box","text":"INDEX EQUITY INVESTMENT STRATEGIES","page_number":201,"box":{"x":338,"y":60,"width":302,"height":10}},{"id":"1451a8ff-9f2e-40ab-b4ca-239fbe4f2ead","block_type":"box","text":"Oversight","page_number":201,"box":{"x":69,"y":83,"width":68,"height":11}},{"id":"0eff983a-53ea-4746-a444-75f058be3029","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":201,"box":{"x":101,"y":101,"width":793,"height":11}},{"id":"d7c67b53-8b3c-47d7-b6cf-8922f9a75c0f","block_type":"box","text":"accordance with the BlackRock Active Investment Stewardship Global Engagement and Voting Guidelines (the","page_number":201,"box":{"x":69,"y":116,"width":778,"height":11}},{"id":"ebd92e1c-20af-43f9-a29a-56177e7f2eac","block_type":"box","text":"“Guidelines”), which require the application of professional judgment and consideration of each company’s unique","page_number":201,"box":{"x":70,"y":131,"width":814,"height":11}},{"id":"4ba447cc-36cd-4d20-bf5e-428e9746020b","block_type":"box","text":"circumstances, as well as input from active investors. BAIS is independent from BlackRock Investment Stewardship","page_number":201,"box":{"x":69,"y":146,"width":825,"height":11}},{"id":"74dda4ba-fb2f-48df-ab3d-d800ee59e7c3","block_type":"box","text":"in our engagement and voting activities, repor ting lines, and oversight.","page_number":201,"box":{"x":70,"y":161,"width":500,"height":11}},{"id":"24893793-ab41-4ffd-88e4-3776b5b53bea","block_type":"box","text":"The Stewardship Leaders Group, comprised of senior active investors and other relevant stakeholders in","page_number":201,"box":{"x":101,"y":179,"width":744,"height":11}},{"id":"d19d9a9b-9e98-4c5a-8432-d48ae9df0189","block_type":"box","text":"BlackRock’s legal, public policy, sustainability and communications teams, helps shape the firm’s approach to","page_number":201,"box":{"x":70,"y":194,"width":786,"height":11}},{"id":"8deaf77d-4e55-4e07-a582-7ad1680b6e7d","block_type":"box","text":"investment stewardship on non-index equity investment strategies. The Group may advise on and review amendments","page_number":201,"box":{"x":70,"y":209,"width":839,"height":11}},{"id":"12c2714c-fc24-4ecb-a64f-2942f5b97aea","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":201,"box":{"x":68,"y":224,"width":822,"height":11}},{"id":"185989ac-49ae-4cb5-bb4a-9d76542fead3","block_type":"box","text":"relevant active equity investors.","page_number":201,"box":{"x":69,"y":239,"width":223,"height":11}},{"id":"a0cd6697-db59-49d3-b4d5-b471a74943a3","block_type":"box","text":"BAIS carries out engagement with companies in collaboration with active investment colleagues, executes proxy","page_number":201,"box":{"x":102,"y":257,"width":797,"height":12}},{"id":"270090ab-e57c-4c0b-912f-a4303e10718d","block_type":"box","text":"votes, and conducts vote operations (including maintaining records of votes cast) in a manner consistent with the","page_number":201,"box":{"x":68,"y":272,"width":810,"height":11}},{"id":"22853c13-a5e1-47d4-a951-0f77a25cd399","block_type":"box","text":"Guidelines. BAIS also conducts research on corporate governance issues and par ticipates in industry discussions to","page_number":201,"box":{"x":69,"y":287,"width":832,"height":11}},{"id":"f97faa6b-587c-4df5-9fe7-5a917ea57d5f","block_type":"box","text":"contribute to and keep abreast of impor tant developments in the corporate governance field. BAIS may use third","page_number":201,"box":{"x":69,"y":302,"width":801,"height":11}},{"id":"063a9c7f-6f74-4cf8-9e9d-6b50867f8c79","block_type":"box","text":"par ties for cer tain of the foregoing activities and per forms oversight of those third par ties (see “Use and oversight of","page_number":201,"box":{"x":70,"y":317,"width":836,"height":11}},{"id":"38a57ac5-49e3-4bc1-89c3-411e60268e99","block_type":"box","text":"third-par ty vote services providers” below).","page_number":201,"box":{"x":68,"y":332,"width":305,"height":11}},{"id":"e5fabb0a-c31f-4e35-9cae-d9ee3e4bdeff","block_type":"box","text":"Voting guidelines and vote execution","page_number":201,"box":{"x":68,"y":354,"width":269,"height":11}},{"id":"33192b19-39a5-4df1-be09-d806e3bacd8a","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":201,"box":{"x":102,"y":373,"width":790,"height":11}},{"id":"f677446f-6821-474d-a4c9-970619653595","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":201,"box":{"x":69,"y":387,"width":838,"height":12}},{"id":"d059b3b5-02bf-4435-bca7-9fbe44626ae2","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":201,"box":{"x":69,"y":402,"width":831,"height":12}},{"id":"61060d59-d165-4e62-9521-9d2624794d35","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":201,"box":{"x":68,"y":417,"width":809,"height":12}},{"id":"0df130aa-39c9-49a5-907f-2bedd130159e","block_type":"box","text":"judgment, and without regard to the relationship of the issuer (or any shareholder proponent or dissident","page_number":201,"box":{"x":67,"y":432,"width":749,"height":11}},{"id":"6f8cba05-7c24-4101-ab12-6e56cc017a37","block_type":"box","text":"shareholder) to the Fund, the Fund’s affiliates (if any), BlackRock or BlackRock’s affiliates, or BlackRock employees","page_number":201,"box":{"x":69,"y":447,"width":825,"height":11}},{"id":"d421ea76-ead3-443c-9b40-e39957a141cb","block_type":"box","text":"(see “Conflicts management policies and procedures,” below).","page_number":201,"box":{"x":69,"y":462,"width":445,"height":11}},{"id":"608fb3f0-4548-4195-bc39-490f587e0e07","block_type":"box","text":"When exercising voting rights, BAIS will normally vote on specific proxy issues in accordance with the Guidelines,","page_number":201,"box":{"x":101,"y":480,"width":803,"height":12}},{"id":"5f961a4c-fb09-4967-8f2e-0566656ba3d2","block_type":"box","text":"although por tfolio managers have the right to vote differently on their holdings if they determine doing so is more","page_number":201,"box":{"x":69,"y":495,"width":806,"height":12}},{"id":"e8ca4340-57a0-4d2f-8668-5abacf1e7ca0","block_type":"box","text":"aligned with the investment objective and financial interests of clients invested in the funds they manage.","page_number":201,"box":{"x":69,"y":510,"width":752,"height":11}},{"id":"1f0f3d50-ac60-4572-b150-a00385d6f280","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":201,"box":{"x":101,"y":529,"width":782,"height":11}},{"id":"ef71b2b9-fe53-42ff-904d-4b60a50e486e","block_type":"box","text":"context of the individual circumstances of each company and the specific issue under review. As such, the Guidelines","page_number":201,"box":{"x":69,"y":544,"width":837,"height":11}},{"id":"9161e2ba-279d-4479-894e-12ecc146538b","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":201,"box":{"x":69,"y":559,"width":830,"height":11}},{"id":"e468c645-830b-4f2a-89fc-ccceb1d40acd","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":201,"box":{"x":68,"y":574,"width":838,"height":11}},{"id":"1d1dcbe3-4b6a-4752-83f2-a017ce621e45","block_type":"box","text":"Guidelines are reviewed annually and updated as necessary to reflect changes in market practices, developments in","page_number":201,"box":{"x":69,"y":588,"width":829,"height":12}},{"id":"1caf243f-5552-414d-8f40-6557df126cce","block_type":"box","text":"corporate governance and feedback from companies and clients. In this way, BAIS aims to maintain policies that","page_number":201,"box":{"x":69,"y":603,"width":802,"height":11}},{"id":"27f788ed-49e3-4371-8ecc-143b7c3838a6","block_type":"box","text":"explain our approach to governance practices most aligned with clients’ long-term financial interests.","page_number":201,"box":{"x":69,"y":618,"width":718,"height":11}},{"id":"594e6f01-260c-4508-90b3-4f161ec57876","block_type":"box","text":"In cer tain markets, proxy voting involves logistical issues which can affect BAIS’ ability to vote such proxies, as","page_number":201,"box":{"x":102,"y":637,"width":792,"height":11}},{"id":"ae3759c5-6ef0-4d06-91d3-83efeead05aa","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":201,"box":{"x":68,"y":652,"width":791,"height":11}},{"id":"e12d8b61-7a6d-4f15-9c78-53811ed2382e","block_type":"box","text":"shareholder meetings; ii) restrictions on a foreigner’s ability to exercise votes; iii) requirements to vote proxies in","page_number":201,"box":{"x":69,"y":666,"width":805,"height":12}},{"id":"0940e64f-3c2b-476d-9901-5a3fe4084a86","block_type":"box","text":"person; iv) “share-blocking” (requirements that investors who exercise their voting rights surrender the right to","page_number":201,"box":{"x":70,"y":682,"width":784,"height":11}},{"id":"31be6092-0d49-4538-bf00-80cf37af203a","block_type":"box","text":"dispose of their holdings from the point at which votes are submitted until after the shareholder meeting has","page_number":201,"box":{"x":69,"y":696,"width":775,"height":11}},{"id":"c030bace-77bd-4e56-b71b-46a4f3bb0def","block_type":"box","text":"occurred); v) potential difficulties in translating the proxy; vi) regulatory constraints; and vii) requirements to provide","page_number":201,"box":{"x":69,"y":711,"width":824,"height":11}},{"id":"93ce0317-dd70-45ca-8d0d-e3ab9f6d5e81","block_type":"box","text":"local agents with powers of attorney to facilitate voting instructions. We are not suppor tive of impediments to the","page_number":201,"box":{"x":70,"y":726,"width":806,"height":11}},{"id":"0185b862-f39b-4657-b6c8-afd1e8594e2a","block_type":"box","text":"exercise of voting rights such as share-blocking or overly burdensome administrative requirements.","page_number":201,"box":{"x":69,"y":741,"width":704,"height":11}},{"id":"b24ff1e3-3217-4ceb-9aac-e653c9c038dc","block_type":"box","text":"BlackRock votes proxies in these situations on a “best-effor ts” basis. 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BlackRock contracts primarily with the vote services provider ISS and","page_number":202,"box":{"x":68,"y":208,"width":770,"height":12}},{"id":"354ce6ec-e877-491b-938b-56020ad74341","block_type":"box","text":"leverages its online platform to supply research and suppor t voting, record keeping, and repor ting processes. We","page_number":202,"box":{"x":70,"y":223,"width":807,"height":12}},{"id":"32b0aa9c-7035-4edf-a50f-1e7fae5e9042","block_type":"box","text":"also use Glass Lewis’ research and analysis as an input into our voting process. 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outlined in this Policy, as par t of BlackRock’s authority to manage, acquire and dispose of account","page_number":205,"box":{"x":102,"y":375,"width":775,"height":12}},{"id":"b930d33e-1ce5-46c4-80b1-ef9d1bbf2925","block_type":"box","text":"assets, all as contemplated by the Funds’ respective investment management agreements.","page_number":205,"box":{"x":102,"y":391,"width":651,"height":11}},{"id":"cad3eddf-c951-460d-a7de-42a68e93aeb5","block_type":"box","text":"BlackRock has adopted the BlackRock Investment Stewardship Global Benchmark Policy (as from time to","page_number":205,"box":{"x":135,"y":409,"width":748,"height":11}},{"id":"39c60c7b-a81f-4c0b-827d-c8c0fb2197cc","block_type":"box","text":"time amended, the “Guidelines”) governing proxy voting by index equity Funds managed by BlackRock, except for","page_number":205,"box":{"x":101,"y":424,"width":804,"height":11}},{"id":"3ce76e20-d96e-46ec-97b1-6f3d631b4030","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":205,"box":{"x":101,"y":439,"width":793,"height":11}},{"id":"5da92f0a-1bd4-4177-b072-09bf7380f957","block_type":"box","text":"time amended, the “BlackRock Climate and Decarbonization Stewardship Guidelines”) governing proxy voting for","page_number":205,"box":{"x":101,"y":454,"width":801,"height":11}},{"id":"018705e8-b98d-42f5-9a44-dd3b579ffbe7","block_type":"box","text":"matters covered in the BlackRock Climate and Decarbonization Stewardship Guidelines by the Funds listed in","page_number":205,"box":{"x":102,"y":469,"width":777,"height":11}},{"id":"70296877-6bee-4617-bebd-c79709adf437","block_type":"box","text":"Appendix A.","page_number":205,"box":{"x":101,"y":484,"width":82,"height":10}},{"id":"dd2153f1-12d2-4b4d-a83d-13b4bd6ef360","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":205,"box":{"x":135,"y":502,"width":751,"height":11}},{"id":"4a98525e-feda-4fd9-8541-90abc758f83b","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":205,"box":{"x":102,"y":517,"width":791,"height":11}},{"id":"ac6041fd-b77d-4611-b090-a9928f52bed0","block_type":"box","text":"the BlackRock Climate and Decarbonization Stewardship Guidelines, as applicable.","page_number":205,"box":{"x":101,"y":532,"width":591,"height":11}},{"id":"e79cd00b-79f5-4e7f-8564-6a31563e79de","block_type":"box","text":"Conflicts Management","page_number":205,"box":{"x":101,"y":550,"width":165,"height":11}},{"id":"360e5751-ee2c-4b70-a733-e221ebaadc5f","block_type":"box","text":"BlackRock Investment Stewardship (“BIS”) maintains policies and procedures that seek to prevent undue","page_number":205,"box":{"x":135,"y":569,"width":751,"height":11}},{"id":"b319d448-c15f-4a05-8e4f-57a3cf0cabcd","block_type":"box","text":"influence on BlackRock’s proxy voting activity and to mitigate material conflicts of interest in the exercise of","page_number":205,"box":{"x":102,"y":584,"width":767,"height":11}},{"id":"a0bc1be0-44a9-4607-af8e-c41f447cca46","block_type":"box","text":"proxy voting responsibilities. Potential material conflicts, and the resultant potential for undue influence, might","page_number":205,"box":{"x":102,"y":599,"width":787,"height":11}},{"id":"0339a048-4ed3-4d72-9224-b868512f4bae","block_type":"box","text":"be due to a relationship between the investee company (or any shareholder proponent or dissident shareholder)","page_number":205,"box":{"x":102,"y":614,"width":797,"height":11}},{"id":"f98aa41c-d0fd-4f0d-93d3-9ae72bbafeb3","block_type":"box","text":"and BlackRock, BlackRock’s affiliates or employees, or a Fund or a Fund’s affiliates. BlackRock has taken","page_number":205,"box":{"x":102,"y":628,"width":756,"height":12}},{"id":"fc450475-ba1c-47d3-83bf-d8e5c7d50a2a","block_type":"box","text":"cer tain steps to mitigate potential conflicts, which are outlined in detail in the Guidelines. In mitigating conflicts,","page_number":205,"box":{"x":101,"y":643,"width":800,"height":12}},{"id":"61098a34-8720-4a6c-8d29-6bd8924f468e","block_type":"box","text":"BIS will adhere to the Guidelines.","page_number":205,"box":{"x":102,"y":658,"width":235,"height":9}},{"id":"6e684d18-a5c6-43cf-b92f-da91bd305639","block_type":"box","text":"In cer tain instances, BIS will engage an independent third-par ty voting service provider to make proxy voting","page_number":205,"box":{"x":135,"y":677,"width":769,"height":11}},{"id":"3b807b70-071b-4f58-a009-d8a4d345c002","block_type":"box","text":"recommendations as a fur ther safeguard to avoid potential conflicts of interest, to satisfy regulatory compliance","page_number":205,"box":{"x":102,"y":692,"width":800,"height":11}},{"id":"5644eecb-061d-4c54-8165-3dcae96de5a3","block_type":"box","text":"requirements, or as may be otherwise required by applicable law.","page_number":205,"box":{"x":102,"y":707,"width":463,"height":11}},{"id":"bda58851-f0d7-4096-802c-934a97aec896","block_type":"box","text":"With respect to the relationship between securities lending and proxy voting, shares on loan cannot be voted","page_number":205,"box":{"x":134,"y":725,"width":774,"height":11}},{"id":"86b81a62-d378-4873-8436-2d7070b6fc39","block_type":"box","text":"and BlackRock may determine to recall them for voting, as guided by BlackRock’s fiduciary responsibility to act","page_number":205,"box":{"x":102,"y":740,"width":791,"height":11}},{"id":"5aa7513b-9dc5-4413-ae3b-b046d63937af","block_type":"box","text":"in clients’ financial interests. The Guidelines set for th BlackRock’s approach to recalling securities on loan in","page_number":205,"box":{"x":102,"y":755,"width":778,"height":11}},{"id":"de4f853b-6c8a-4862-be2c-0bd3f3219ae3","block_type":"box","text":"connection with proxy voting.","page_number":205,"box":{"x":101,"y":770,"width":203,"height":11}},{"id":"f6888ab1-c2a6-4f3a-b13d-146202c02fc6","block_type":"box","text":"Reports to the Board","page_number":205,"box":{"x":102,"y":789,"width":153,"height":10}},{"id":"d345259e-922a-4fb3-8635-ad85047a17ec","block_type":"box","text":"BlackRock will repor t on an annual basis to the Directors on (1) a summary of the proxy voting process as","page_number":205,"box":{"x":135,"y":807,"width":755,"height":11}},{"id":"ee9992ef-16f7-478b-a236-dcfbaed4070d","block_type":"box","text":"applicable to the Funds covered by this policy in the preceding year together with a representation that all 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Engaging with the boards and management of companies","page_number":209,"box":{"x":69,"y":171,"width":451,"height":11}},{"id":"61bc7963-8b99-4f4a-9e6a-db0986a039a3","block_type":"box","text":"in which clients are invested to deepen our","page_number":209,"box":{"x":527,"y":171,"width":305,"height":11}},{"id":"4e31cb3f-e695-42e2-be69-419c1c5bae3f","block_type":"box","text":"understanding of a company’s business model, including how they are overseeing material business risks and","page_number":209,"box":{"x":102,"y":186,"width":784,"height":11}},{"id":"0e62318f-9185-4f0e-a52b-9ea78c468a86","block_type":"box","text":"oppor tunities over time, and to help inform our voting on behalf of clients.","page_number":209,"box":{"x":102,"y":201,"width":526,"height":11}},{"id":"3e8d3762-de48-464b-9010-5bf9239fb8ba","block_type":"box","text":"1","page_number":209,"box":{"x":630,"y":201,"width":4,"height":5}},{"id":"16117d4a-3965-4cde-b204-45baafce8304","block_type":"box","text":"2. Voting at shareholder meetings","page_number":209,"box":{"x":69,"y":221,"width":260,"height":11}},{"id":"398fab8c-ea82-4563-ad93-6b2554985935","block_type":"box","text":"on management and shareholder proposals for clients who have authorized BIS","page_number":209,"box":{"x":335,"y":221,"width":566,"height":11}},{"id":"5c6a41c8-7ab8-43ce-bda7-647ffc1e9397","block_type":"box","text":"to vote on their behalf.","page_number":209,"box":{"x":101,"y":236,"width":160,"height":9}},{"id":"ffdcfea3-3071-444c-b66b-428f983c71b5","block_type":"box","text":"3. 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Reporting on our activities to inform clients","page_number":209,"box":{"x":69,"y":292,"width":351,"height":11}},{"id":"1dd6b1dd-63df-44ac-9491-6d14d01d821b","block_type":"box","text":"about our stewardship effor ts on their behalf through a range of","page_number":209,"box":{"x":426,"y":292,"width":457,"height":11}},{"id":"8ed1fbab-8296-46be-89a0-d6c446ff7d99","block_type":"box","text":"publications on our website and direct client communications.","page_number":209,"box":{"x":102,"y":307,"width":439,"height":11}},{"id":"54e1800f-069f-4c79-93b0-710d553bcb8f","block_type":"box","text":"This document provides an overarching explanation of the principles that guide our approach to engaging and","page_number":209,"box":{"x":101,"y":329,"width":778,"height":12}},{"id":"aaa06584-3d2e-4a36-bc30-737c8e42d9cf","block_type":"box","text":"voting on corporate governance matters and other material risks and oppor tunities under BIS’ Benchmark Policies.","page_number":209,"box":{"x":68,"y":345,"width":817,"height":11}},{"id":"847449d0-1584-4584-a43a-ead7725098c7","block_type":"box","text":"The BIS Benchmark Policies – which are comprised of the BIS Global Principles, regional voting guidelines, and","page_number":209,"box":{"x":68,"y":360,"width":790,"height":11}},{"id":"c605ee73-7d11-4f6a-bc48-ea4b93d323f7","block_type":"box","text":"Engagement Priorities – apply to clients’ assets invested through index equity strategies, take a financial materiality","page_number":209,"box":{"x":70,"y":375,"width":829,"height":11}},{"id":"35e4f17b-a404-4f7a-8791-89403d11f4a3","block_type":"box","text":"based approach, and are focused solely on advancing clients’ long-term financial interests.","page_number":209,"box":{"x":69,"y":390,"width":648,"height":11}},{"id":"557dc2c3-59be-4d16-a401-d593cab35ded","block_type":"box","text":"2","page_number":209,"box":{"x":718,"y":390,"width":4,"height":5}},{"id":"940b5b4b-3af5-4a93-8cc2-8f06091d4525","block_type":"box","text":"PHILOSOPHY ON INVESTMENT STEWARDSHIP","page_number":209,"box":{"x":321,"y":420,"width":337,"height":9}},{"id":"cd3ba39d-fa46-472d-b328-8b2aa6b1de03","block_type":"box","text":"Sound governance is critical to a company’s ability to create long-term financial value. We maintain global","page_number":209,"box":{"x":102,"y":443,"width":751,"height":11}},{"id":"5081a04d-9f45-4396-a338-2a365725e0ec","block_type":"box","text":"principles on corporate governance, which guide our approach to stewardship across jurisdictions, while recognizing","page_number":209,"box":{"x":70,"y":458,"width":824,"height":11}},{"id":"50533200-30a1-47f0-86c6-e4bcbb4d7398","block_type":"box","text":"the unique characteristics of the different markets where companies operate.","page_number":209,"box":{"x":68,"y":473,"width":553,"height":11}},{"id":"ae8ad753-cfa0-4cf3-b08c-e52ec3d4d944","block_type":"box","text":"Setting, executing, and overseeing strategy are the responsibility of management and the board. 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Our role, on behalf of clients as long-term investors, is to better","page_number":209,"box":{"x":69,"y":526,"width":840,"height":11}},{"id":"9692fbd6-6e01-4b5a-8d9c-982488a050a0","block_type":"box","text":"understand how corporate leadership is managing material risks and capitalizing on oppor tunities to help protect and","page_number":209,"box":{"x":69,"y":541,"width":835,"height":11}},{"id":"c610ddc8-3cfe-4e7a-821c-818e4a892f4f","block_type":"box","text":"enhance the company’s ability to deliver long-term financial returns.","page_number":209,"box":{"x":69,"y":556,"width":481,"height":11}},{"id":"ccaf2da0-3e35-41be-bb6c-4a5ee2f17520","block_type":"box","text":"STEWARDSHIP IN PRACTICE","page_number":209,"box":{"x":384,"y":586,"width":210,"height":9}},{"id":"ea3e17ae-f840-432d-96fb-2c688fc79709","block_type":"box","text":"The assets BlackRock manages belong to our clients, which include public and private pension plans, insurers,","page_number":209,"box":{"x":101,"y":609,"width":791,"height":11}},{"id":"059ffeca-80dc-43c3-905a-4b9037a27b8c","block_type":"box","text":"official institutions, endowments, universities, charities, family offices, wealth managers, and ultimately, the","page_number":209,"box":{"x":69,"y":624,"width":772,"height":11}},{"id":"82bb9c59-86fa-4c77-b98a-51217c210f54","block_type":"box","text":"individual investors that they serve. Through stewardship, we assess how companies are creating long-term financial","page_number":209,"box":{"x":70,"y":639,"width":831,"height":12}},{"id":"57421352-06de-4adc-aa9c-bdbfb37ca39f","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":209,"box":{"x":68,"y":654,"width":780,"height":12}},{"id":"e60a20d0-33c3-48d8-be87-7208562580d1","block_type":"box","text":"program - including when engaging with companies and voting at shareholder meetings on behalf of clients - is","page_number":209,"box":{"x":70,"y":669,"width":784,"height":12}},{"id":"1e3131da-1933-4afc-b155-dcff749afab4","block_type":"box","text":"conducted from a long-term investor perspective and takes a financial materiality-based approach, focused solely on","page_number":209,"box":{"x":69,"y":685,"width":828,"height":11}},{"id":"a22b527a-1e80-4145-a295-9cbc0e613c20","block_type":"box","text":"advancing clients’ long-term financial interests.","page_number":209,"box":{"x":69,"y":700,"width":334,"height":11}},{"id":"bf3896a6-679c-45f4-9107-a50e8b34dfaf","block_type":"box","text":"BIS engages with the boards and management of companies in which clients are invested to deepen our","page_number":209,"box":{"x":102,"y":722,"width":745,"height":12}},{"id":"2c636087-98d2-4e3a-8095-c905d8ec9a8b","block_type":"box","text":"understanding of a company’s business model, including how they are overseeing material business risks and","page_number":209,"box":{"x":69,"y":738,"width":785,"height":11}},{"id":"6dca2c53-281f-4e5e-bba3-3669b1239c8c","block_type":"box","text":"oppor tunities over time, and to help inform our voting on behalf of clients. Engagements provide companies with the","page_number":209,"box":{"x":69,"y":753,"width":829,"height":11}},{"id":"47e74b65-4dab-462f-b289-0abc47d93fd3","block_type":"box","text":"oppor tunity to share their perspectives on topics that, in BIS’ experience, impact the long-term financial returns","page_number":209,"box":{"x":69,"y":768,"width":795,"height":11}},{"id":"ae4af9e9-1573-4757-b357-b2d3d89c7f65","block_type":"box","text":"BlackRock’s clients depend on to meet their financial goals.","page_number":209,"box":{"x":70,"y":783,"width":425,"height":11}},{"id":"14ebaa6d-6462-4aba-9cb6-5ada47273d07","block_type":"box","text":"1","page_number":209,"box":{"x":69,"y":813,"width":4,"height":4}},{"id":"f2a05cbd-b235-4bf8-9a16-48f11bd58f2c","block_type":"box","text":"On February 11, 2025, the U.S. Securities and Exchange Commission (SEC) staff issued updated guidance for","page_number":209,"box":{"x":79,"y":812,"width":790,"height":11}},{"id":"09ec1e87-a13b-4e8f-be29-f68bc91d561e","block_type":"box","text":"shareholders to maintain their eligibility to repor t their beneficial ownership under Schedule 13G of the Exchange Act.","page_number":209,"box":{"x":69,"y":827,"width":836,"height":12}},{"id":"f9cc3c92-9f2c-4b24-b12e-8dce3da76f96","block_type":"box","text":"We comply fully with these requirements and do not engage with por tfolio companies for the purpose, or with the","page_number":209,"box":{"x":68,"y":842,"width":805,"height":12}},{"id":"3dddf93d-fa9e-4643-bdb4-9d66977f3fbc","block_type":"box","text":"effect, of changing or influencing control of any company.","page_number":209,"box":{"x":69,"y":857,"width":405,"height":12}},{"id":"768d9ea7-3425-4a45-b601-3602cc4510fe","block_type":"box","text":"2","page_number":209,"box":{"x":69,"y":876,"width":4,"height":4}},{"id":"745c943d-776b-4b86-bef5-1621b9638079","block_type":"box","text":"Alongside the Global Principles and regional voting guidelines, BIS publishes Engagement Priorities which reflect the","page_number":209,"box":{"x":78,"y":875,"width":827,"height":11}},{"id":"ec2784c6-55e7-4397-a850-42f323ec400c","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":209,"box":{"x":68,"y":890,"width":818,"height":12}},{"id":"0f459410-3768-4a6b-867b-222532bcd8be","block_type":"box","text":"material business risk or oppor tunity.","page_number":209,"box":{"x":69,"y":906,"width":264,"height":11}},{"id":"6daf77ed-ea9f-4099-973f-a7cb5970d997","block_type":"box","text":"BlackRock Investment Stewardship","page_number":209,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"9d351c97-224a-45ba-885e-628856e3f040","block_type":"box","text":"Global Principles | 3","page_number":209,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"923c323e-45c2-433e-8051-74546794302d","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":209,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"1bac905e-3318-4eb1-99f6-059d90f0c0c9","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":210,"box":{"x":101,"y":45,"width":753,"height":11}},{"id":"b1207a72-e894-47c8-bd64-a2533ffe01d0","block_type":"box","text":"governance. As a fiduciary, BlackRock is legally required to make proxy voting determinations in a manner that is","page_number":210,"box":{"x":68,"y":60,"width":805,"height":11}},{"id":"91d49981-1e7e-4b23-99df-fdb16080f21e","block_type":"box","text":"consistent with the investment objectives of clients who have delegated voting authority to us. BIS’ Benchmark","page_number":210,"box":{"x":69,"y":75,"width":790,"height":11}},{"id":"878dd477-d6fa-42a9-9911-7536ce05ed95","block_type":"box","text":"Policies, and the vote decisions made consistent with those policies, reflect our reasonable and independent","page_number":210,"box":{"x":69,"y":90,"width":779,"height":11}},{"id":"b650b65a-df8f-4005-a8e4-8a96bfcd22f8","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":210,"box":{"x":67,"y":105,"width":816,"height":11}},{"id":"b742f497-80ab-4f2b-8b68-e5e6a1899d5d","block_type":"box","text":"factors, including in-depth analysis of company disclosures, comparisons against industry peers, third-par ty research,","page_number":210,"box":{"x":68,"y":120,"width":839,"height":12}},{"id":"bf924fa8-a357-400c-b23a-9709940d6d14","block_type":"box","text":"and, where appropriate, engagement with companies.","page_number":210,"box":{"x":69,"y":136,"width":381,"height":11}},{"id":"d0bbf66e-4e18-471a-ad4f-5f6372e43dfe","block_type":"box","text":"Generally, BIS suppor ts the vote recommendations of the board of directors and management at companies","page_number":210,"box":{"x":102,"y":158,"width":770,"height":11}},{"id":"b9b15fa0-3f7c-42af-b510-e7b62de3b51e","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":210,"box":{"x":68,"y":173,"width":838,"height":11}},{"id":"40eb31d3-c396-4589-bf99-675ad8838883","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":210,"box":{"x":69,"y":188,"width":827,"height":12}},{"id":"ea08e135-525e-4758-b4f5-85ef74653c5c","block_type":"box","text":"suppor t the election of directors or other management proposals, or we might not suppor t management’s voting","page_number":210,"box":{"x":69,"y":203,"width":802,"height":12}},{"id":"e052a542-c565-443a-81e0-8d36835fdfa2","block_type":"box","text":"recommendation on a shareholder proposal.","page_number":210,"box":{"x":69,"y":219,"width":315,"height":10}},{"id":"a85b4cb0-59ab-423e-a2a3-c3a7b05695ac","block_type":"box","text":"SHAREHOLDER RIGHTS","page_number":210,"box":{"x":403,"y":249,"width":172,"height":9}},{"id":"c2aa54e8-3588-4ada-8ca9-7c8323189ca9","block_type":"box","text":"BlackRock’s global approach as a shareholder on behalf of our clients is underpinned by cer tain rights attached","page_number":210,"box":{"x":102,"y":271,"width":796,"height":12}},{"id":"41360330-5e3c-483b-ba9b-78a1dca40520","block_type":"box","text":"to shareholding in most markets, as established by corporate laws, regulations, and listing rules.","page_number":210,"box":{"x":68,"y":287,"width":693,"height":11}},{"id":"91123048-e665-40b8-ad39-981adf9fdf36","block_type":"box","text":"3","page_number":210,"box":{"x":763,"y":287,"width":4,"height":4}},{"id":"16c07bcc-0b0b-46bf-8006-9b853656f8e7","block_type":"box","text":"For example, in","page_number":210,"box":{"x":774,"y":287,"width":106,"height":10}},{"id":"195dc231-1efd-4465-a452-601940d6cb15","block_type":"box","text":"most markets, shareholders have the right to:","page_number":210,"box":{"x":69,"y":302,"width":326,"height":11}},{"id":"983e9117-432d-46b3-881c-88c709654713","block_type":"box","text":"•","page_number":210,"box":{"x":69,"y":325,"width":6,"height":4}},{"id":"e0e74945-1c1c-4cc7-a385-1b217dbb5ead","block_type":"box","text":"Vote to elect, remove, and nominate directors, approve the appointment of the auditor, and amend the corporate","page_number":210,"box":{"x":101,"y":322,"width":804,"height":11}},{"id":"82a18bb8-68a6-4bb4-8ab8-84672d3827ae","block_type":"box","text":"char ter or bylaws.","page_number":210,"box":{"x":101,"y":337,"width":126,"height":11}},{"id":"c31ef308-54a5-4960-99bb-ec779ad62f7f","block_type":"box","text":"•","page_number":210,"box":{"x":69,"y":360,"width":6,"height":5}},{"id":"1244596a-9c71-43ad-8169-5b89bdef8b66","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":210,"box":{"x":101,"y":357,"width":789,"height":11}},{"id":"75797748-c092-4c0c-9e41-4711afd2ef6b","block_type":"box","text":"changes to the purpose of the business, dilution levels, and pre-emptive rights.","page_number":210,"box":{"x":101,"y":372,"width":564,"height":11}},{"id":"09087dac-52b9-4f46-b760-52de6cddd401","block_type":"box","text":"•","page_number":210,"box":{"x":69,"y":395,"width":6,"height":5}},{"id":"c8dce74d-1098-4957-bd78-b781c63592ba","block_type":"box","text":"Access sufficient and timely information on governance, strategic, and business matters — where such matters","page_number":210,"box":{"x":101,"y":392,"width":799,"height":12}},{"id":"13288f95-1d62-4cf1-b764-ece5e4608f1a","block_type":"box","text":"are material — to make informed decisions.","page_number":210,"box":{"x":102,"y":407,"width":313,"height":9}},{"id":"ff7c3b4b-a2eb-4c91-81c5-8d0071225464","block_type":"box","text":"KEY GOVERNANCE TOPICS","page_number":210,"box":{"x":391,"y":438,"width":196,"height":9}},{"id":"63729567-2052-470c-a221-440adbe56c59","block_type":"box","text":"In our experience, there are cer tain globally applicable elements of corporate governance that contribute to a","page_number":210,"box":{"x":102,"y":460,"width":776,"height":12}},{"id":"7f50ece1-efb6-42bf-9527-4479138c36ae","block_type":"box","text":"company’s ability to create long-term financial value for shareholders. These are topics that shareholders may have","page_number":210,"box":{"x":69,"y":475,"width":822,"height":12}},{"id":"d201f292-4d79-4423-8c70-551fca900b65","block_type":"box","text":"the ability to vote on at shareholder meetings. These areas include:","page_number":210,"box":{"x":68,"y":491,"width":482,"height":11}},{"id":"0f285d0e-67e6-4633-a6dc-5974e39582b7","block_type":"box","text":"•","page_number":210,"box":{"x":69,"y":514,"width":6,"height":4}},{"id":"3ced3115-3df0-46fc-8ddf-f81ec3452f89","block_type":"box","text":"Boards and directors","page_number":210,"box":{"x":102,"y":511,"width":147,"height":9}},{"id":"f1cade17-5077-45d4-99e5-740ca62b4a36","block_type":"box","text":"•","page_number":210,"box":{"x":69,"y":534,"width":6,"height":4}},{"id":"3e6adab8-3427-4e09-9588-5f3aa73165ef","block_type":"box","text":"Auditors and audit-related issues","page_number":210,"box":{"x":101,"y":531,"width":234,"height":9}},{"id":"ac84a7d0-6a65-48ef-8ab2-209e0d94a338","block_type":"box","text":"•","page_number":210,"box":{"x":69,"y":554,"width":6,"height":5}},{"id":"49cf2822-9779-4945-a8f8-572cd9f49a8f","block_type":"box","text":"Capital structure, mergers, acquisitions, asset sales, and other special situations","page_number":210,"box":{"x":102,"y":551,"width":583,"height":11}},{"id":"dcc27a63-0021-42cc-a176-197f200dfd73","block_type":"box","text":"•","page_number":210,"box":{"x":69,"y":574,"width":6,"height":5}},{"id":"b0d5e7d5-0391-435d-bcfc-241b5fea84a0","block_type":"box","text":"Executive compensation","page_number":210,"box":{"x":102,"y":571,"width":170,"height":11}},{"id":"dcdee549-3b4b-40d6-90c8-3b01b0433f7f","block_type":"box","text":"•","page_number":210,"box":{"x":69,"y":594,"width":6,"height":5}},{"id":"0dc1e64c-0f2f-4718-a2ce-f983cfe9ed0a","block_type":"box","text":"Shareholder protections and other significant corporate governance matters","page_number":210,"box":{"x":102,"y":591,"width":539,"height":12}},{"id":"3b385be8-32df-48cb-af9d-41038f35a04d","block_type":"box","text":"•","page_number":210,"box":{"x":69,"y":614,"width":6,"height":5}},{"id":"5f50d32a-9ee1-456f-ba72-cbd11b3c1356","block_type":"box","text":"Shareholder proposals","page_number":210,"box":{"x":102,"y":612,"width":160,"height":11}},{"id":"8d3b09d1-ef3b-4520-a634-8e2e89b8d79e","block_type":"box","text":"The BIS Benchmark Policies are not prescriptive but rather are applied on a pragmatic basis, taking into","page_number":210,"box":{"x":101,"y":634,"width":740,"height":12}},{"id":"5ac089ca-298b-4828-ad1e-0a12e00dae4c","block_type":"box","text":"consideration a number of company-specific factors, including the sector, market, and business environment within","page_number":210,"box":{"x":69,"y":649,"width":819,"height":12}},{"id":"4eeccd3f-55aa-471d-83f5-5c1a429b1530","block_type":"box","text":"which companies operate.","page_number":210,"box":{"x":68,"y":665,"width":186,"height":10}},{"id":"2b6e4fc7-2866-4f45-939a-409396fa2c81","block_type":"box","text":"At the regional level, it is our view that companies should observe the accepted corporate governance standards","page_number":210,"box":{"x":101,"y":687,"width":803,"height":11}},{"id":"92b75ca0-a6f8-4279-bb4f-0ade2ac5ab79","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":210,"box":{"x":70,"y":702,"width":785,"height":11}},{"id":"f76740ec-fee2-455e-b69a-9720960bda9a","block_type":"box","text":"suppor ts durable, long-term financial value creation. Our regional voting guidelines explain how the BIS Global","page_number":210,"box":{"x":69,"y":717,"width":781,"height":12}},{"id":"313d9df8-a41d-4063-bf4a-0486d41f1d09","block_type":"box","text":"Principles inform our voting decisions in relation to common ballot items for shareholder meetings in those markets.","page_number":210,"box":{"x":69,"y":732,"width":829,"height":12}},{"id":"3f9a2982-819d-4d3b-b6d0-c2b86102956a","block_type":"box","text":"4","page_number":210,"box":{"x":899,"y":733,"width":5,"height":4}},{"id":"ab993da5-4a2e-487f-bc8e-400bf5c3a727","block_type":"box","text":"3","page_number":210,"box":{"x":69,"y":762,"width":4,"height":5}},{"id":"f8d94f49-e9a9-4820-98c7-10cf5b350359","block_type":"box","text":"Examples include: Government of Canada, “Canada Business Corporations Act,” amended 2024; European Union,","page_number":210,"box":{"x":79,"y":762,"width":816,"height":11}},{"id":"f2f7fcb8-295c-49bb-9b24-b3940aa69e96","block_type":"box","text":"“Shareholder Rights Directive II,” 2017; and the China Securities Regulatory Commission, “Code of Corporate","page_number":210,"box":{"x":70,"y":777,"width":784,"height":11}},{"id":"20d09b2c-3dc7-4fa3-ac08-356246ad8712","block_type":"box","text":"Governance for Listed Companies in China,” 2001. Websites accessed in December 2025.","page_number":210,"box":{"x":69,"y":792,"width":650,"height":11}},{"id":"806e6599-0cf1-45eb-9995-66022b16db23","block_type":"box","text":"4","page_number":210,"box":{"x":69,"y":810,"width":4,"height":4}},{"id":"7d845452-2cee-4a16-967d-64b8d35df6c4","block_type":"box","text":"Our regional voting guidelines reflect these different market standards and norms. Depending on the market,","page_number":210,"box":{"x":79,"y":810,"width":776,"height":11}},{"id":"1072505a-9f60-4bd3-89f6-79393e0caa46","block_type":"box","text":"generally accepted practice is informed by corporate law, market regulation, best practices, and industry initiatives,","page_number":210,"box":{"x":68,"y":825,"width":821,"height":11}},{"id":"78127609-7a2a-4775-8b0f-a0a6755d4426","block_type":"box","text":"amongst other factors. BIS carries out engagement with companies, executes proxy votes, and conducts vote","page_number":210,"box":{"x":69,"y":840,"width":780,"height":11}},{"id":"961c86e6-1a86-4180-82a7-e59e4b5ff8b9","block_type":"box","text":"operations (including maintaining records of votes cast) in a manner consistent with the relevant regional voting","page_number":210,"box":{"x":69,"y":855,"width":796,"height":11}},{"id":"a4cbea79-e684-40bd-964e-79f849c0394f","block_type":"box","text":"guidelines.","page_number":210,"box":{"x":68,"y":870,"width":76,"height":11}},{"id":"2b1db6e5-a749-4ceb-9c78-2378c62d9c4b","block_type":"box","text":"BlackRock Investment Stewardship","page_number":210,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"6ace3240-4ea0-4025-a0ef-60e80cc8b5e8","block_type":"box","text":"Global Principles | 4","page_number":210,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"665aae43-ea31-48d3-9359-92366237afbd","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":210,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"aac8e278-7760-403d-9168-510764003ef4","block_type":"box","text":"BOARDS AND DIRECTORS","page_number":211,"box":{"x":394,"y":45,"width":190,"height":9}},{"id":"85e0ea85-ecc0-4f4d-a751-80570c495fce","block_type":"box","text":"Oversight role of the board","page_number":211,"box":{"x":69,"y":75,"width":194,"height":11}},{"id":"623e3d74-ebe1-4428-908d-d5550a3dc7ba","block_type":"box","text":"Companies whose boards are comprised of appropriately qualified, engaged directors with professional","page_number":211,"box":{"x":102,"y":98,"width":734,"height":11}},{"id":"235769c0-9585-493d-a749-0e5762861830","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":211,"box":{"x":69,"y":113,"width":806,"height":11}},{"id":"8dd83283-775c-46e5-99a2-ebbab2d6cca6","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":211,"box":{"x":69,"y":128,"width":822,"height":11}},{"id":"44427ba4-bf05-4f83-9c5a-25bc5c54cbc5","block_type":"box","text":"advantage, providing valuable oversight and contributing to the most impor tant management decisions that suppor t","page_number":211,"box":{"x":69,"y":143,"width":825,"height":11}},{"id":"a21cc1f2-f8ca-42a8-adfd-e843a9441e8c","block_type":"box","text":"long-term financial per formance.","page_number":211,"box":{"x":70,"y":158,"width":229,"height":11}},{"id":"8d5ade17-91e1-4b98-a671-7fa1833209e1","block_type":"box","text":"For this reason, our investment stewardship effor ts focus on the effectiveness of the board of directors. We","page_number":211,"box":{"x":102,"y":181,"width":771,"height":11}},{"id":"72a9f07f-5959-4b95-b30d-320fb435e8fc","block_type":"box","text":"engage, as necessary, with members of the board’s nominating and/or governance committee to assess whether","page_number":211,"box":{"x":69,"y":196,"width":811,"height":11}},{"id":"1ae042e9-840f-4888-8f8c-848c4b4732c1","block_type":"box","text":"governance practices and board composition are effective given a company’s business model, sector, market, and","page_number":211,"box":{"x":68,"y":211,"width":817,"height":11}},{"id":"d5312ede-6576-42cd-88f3-ebdd78ea4a6e","block_type":"box","text":"the business environment in which a company is operating.","page_number":211,"box":{"x":68,"y":226,"width":422,"height":11}},{"id":"e72e57b9-5e15-4207-a890-8449e6126e0c","block_type":"box","text":"We consider it good practice when the board establishes and maintains a framework of robust and effective","page_number":211,"box":{"x":101,"y":249,"width":770,"height":11}},{"id":"94794b9f-a1c6-4613-b23c-df2dc09fdbc0","block_type":"box","text":"governance mechanisms that suppor ts its oversight of the company’s strategy and operations, consistent with the","page_number":211,"box":{"x":68,"y":264,"width":817,"height":11}},{"id":"2f9efe8e-cd40-4e9e-9f4a-d679763895d5","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":211,"box":{"x":70,"y":279,"width":799,"height":11}},{"id":"189a8769-1002-47f0-8416-546e02f9105c","block_type":"box","text":"committees of the board and how directors engage with and oversee management, as well as disclosure of material","page_number":211,"box":{"x":69,"y":294,"width":827,"height":11}},{"id":"414b07e3-cf0a-4b50-bbce-244a47d9d669","block_type":"box","text":"risks that may affect a company’s long-term strategy and how management is effectively identifying, managing, and","page_number":211,"box":{"x":69,"y":309,"width":822,"height":11}},{"id":"3afef913-7784-43ab-8b45-a0c25477d5ef","block_type":"box","text":"mitigating such risks.","page_number":211,"box":{"x":69,"y":325,"width":150,"height":11}},{"id":"daa6e0c6-a6c7-41d2-b0a0-b9b12c78f090","block_type":"box","text":"Understanding management’s long-term strategy and the milestones against which investors should assess its","page_number":211,"box":{"x":102,"y":347,"width":791,"height":11}},{"id":"0afdc73a-8bd8-4816-ad35-79404087b849","block_type":"box","text":"implementation is central to our approach. If any strategic targets are significantly missed or materially restated, we","page_number":211,"box":{"x":70,"y":362,"width":826,"height":11}},{"id":"2d397f41-134d-48d7-9366-9dae04bc7103","block_type":"box","text":"find it helpful when company disclosures provide a detailed explanation of the changes and an indication of the","page_number":211,"box":{"x":68,"y":377,"width":793,"height":12}},{"id":"f07ef4a2-0440-42a4-b3b1-5e9eb2de7899","block_type":"box","text":"board’s role in reviewing the revised targets. We look to the board to ar ticulate the effectiveness of these","page_number":211,"box":{"x":69,"y":392,"width":755,"height":12}},{"id":"4e5f2682-734f-405a-ad22-5e3e0d8c733d","block_type":"box","text":"mechanisms in overseeing the management of business risks and oppor tunities and the fulfillment of the company’s","page_number":211,"box":{"x":69,"y":407,"width":835,"height":12}},{"id":"17ae7463-c74f-483a-9f33-85b3ad2d4ae3","block_type":"box","text":"strategy.","page_number":211,"box":{"x":69,"y":423,"width":58,"height":11}},{"id":"46398700-d341-406b-8f98-8e49a94f9b34","block_type":"box","text":"Where a company has not adequately disclosed or demonstrated that its board has fulfilled these corporate","page_number":211,"box":{"x":101,"y":445,"width":769,"height":11}},{"id":"87e83af9-9e76-477a-935e-ba0549a3d3de","block_type":"box","text":"governance and risk oversight responsibilities, we may consider not suppor ting the election of directors who, in our","page_number":211,"box":{"x":68,"y":460,"width":823,"height":12}},{"id":"3ba287f2-6040-4358-bc11-6c94bed9b4b7","block_type":"box","text":"assessment, have par ticular responsibility for the issues.","page_number":211,"box":{"x":69,"y":475,"width":409,"height":12}},{"id":"1332d335-2c2b-44c7-8f59-835719b295cd","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":211,"box":{"x":101,"y":498,"width":791,"height":11}},{"id":"026ed4f9-326d-4b84-91d5-27ff436f72d2","block_type":"box","text":"the board’s effectiveness as a group include the relevance of individual directors’ qualifications and skillsets, as well","page_number":211,"box":{"x":68,"y":513,"width":836,"height":12}},{"id":"861a0c70-c84d-4684-9cb2-9151217915ba","block_type":"box","text":"as directors’ capacity and other time commitments, and how these factors may contribute to the company’s financial","page_number":211,"box":{"x":69,"y":528,"width":833,"height":12}},{"id":"da1e1d93-6dd1-45e1-91c7-9f63de238fb2","block_type":"box","text":"per formance. We look to boards to establish formal and transparent processes for nominating directors that reflect","page_number":211,"box":{"x":70,"y":543,"width":823,"height":12}},{"id":"352af25a-1c8c-4cfd-bb95-061c5846318f","block_type":"box","text":"the company’s long-term strategy and business model.","page_number":211,"box":{"x":68,"y":559,"width":390,"height":11}},{"id":"9a1fe98b-36af-4a2c-b9e9-2fbf4386787f","block_type":"box","text":"In the section titled “Board quality and effectiveness” below, we provide more detail about our approach to board","page_number":211,"box":{"x":102,"y":581,"width":807,"height":11}},{"id":"9f5fd397-7493-4cee-a423-e8c3616b2503","block_type":"box","text":"composition and how it underpins board effectiveness and long-term financial value creation.","page_number":211,"box":{"x":69,"y":596,"width":662,"height":12}},{"id":"ef19c223-f465-473c-b26a-5fa479a510fe","block_type":"box","text":"Regular accountability through director elections","page_number":211,"box":{"x":69,"y":627,"width":358,"height":11}},{"id":"31dfa318-9e50-4199-903b-2e7a946ac8e6","block_type":"box","text":"The election of directors to the board is a right of shareholders and an impor tant signal of suppor t for, or","page_number":211,"box":{"x":101,"y":649,"width":750,"height":12}},{"id":"056d5f18-4400-484a-b2a8-7617d36f0176","block_type":"box","text":"concern about, the per formance of the board in overseeing and advising management. To ensure accountability for","page_number":211,"box":{"x":69,"y":664,"width":819,"height":12}},{"id":"a81e715d-0bbe-4dd4-8312-9f670c9704f6","block_type":"box","text":"their decisions on behalf of shareholders, directors should stand for election on a regular basis, ideally annually.","page_number":211,"box":{"x":68,"y":680,"width":802,"height":11}},{"id":"e49f8395-7fce-428d-9f9a-588dd0893805","block_type":"box","text":"5","page_number":211,"box":{"x":872,"y":680,"width":4,"height":4}},{"id":"87141bb0-420d-42c9-b903-d8cbf91bf704","block_type":"box","text":"Annual director elections allow shareholders to reaffirm their suppor t for, or concerns about, board members’","page_number":211,"box":{"x":68,"y":695,"width":782,"height":11}},{"id":"120e2fc3-d7ae-46b7-9423-f10e5b0c1aaf","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":211,"box":{"x":69,"y":710,"width":832,"height":11}},{"id":"7f986b8f-8944-4c61-b20d-05d1369276a2","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":211,"box":{"x":68,"y":725,"width":832,"height":11}},{"id":"abeb33e2-55a6-45eb-9683-e1d86cf8ae4d","block_type":"box","text":"with a propor tion of directors being put forward for election at each shareholder meeting.","page_number":211,"box":{"x":68,"y":740,"width":636,"height":11}},{"id":"f75dd27e-7928-4e3a-a8a4-eb239ffc3182","block_type":"box","text":"BOARD QUALITY AND EFFECTIVENESS","page_number":211,"box":{"x":348,"y":770,"width":282,"height":11}},{"id":"905c7f4c-7757-41da-ae27-3333579100fe","block_type":"box","text":"Regular director elections also give boards the oppor tunity to adjust their composition in an orderly way to reflect","page_number":211,"box":{"x":102,"y":793,"width":805,"height":11}},{"id":"9b557d4a-2305-4ab4-848e-6d27faf8ea74","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":211,"box":{"x":69,"y":808,"width":831,"height":11}},{"id":"5da1b599-3c0c-4b6f-abf5-d8ccc12d3b57","block_type":"box","text":"be brought onto the board periodically to refresh the group’s thinking, while suppor ting both continuity and","page_number":211,"box":{"x":69,"y":823,"width":758,"height":12}},{"id":"de40e074-c7eb-48aa-8c38-1ed8ec26e47a","block_type":"box","text":"5","page_number":211,"box":{"x":69,"y":853,"width":4,"height":4}},{"id":"f5a0a625-df59-4277-a259-f73f75d12a02","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":211,"box":{"x":79,"y":852,"width":795,"height":12}},{"id":"a05e931f-bf95-4ef2-a189-015a27a7c7ef","block_type":"box","text":"market regulation or voluntary best practice.","page_number":211,"box":{"x":69,"y":868,"width":314,"height":11}},{"id":"8b076818-366d-435a-b017-963ce2dbeacd","block_type":"box","text":"BlackRock Investment Stewardship","page_number":211,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"1ca14345-263c-4ccc-83d2-dc7670763e0c","block_type":"box","text":"Global Principles | 5","page_number":211,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"78b465be-0fbb-4298-a8b0-febfcceaec4a","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":211,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"2296f92c-3582-4afb-9257-370bb2f3b337","block_type":"box","text":"appropriate succession planning. We consider the average overall tenure of the board and seek a balance between","page_number":212,"box":{"x":69,"y":45,"width":819,"height":11}},{"id":"39e10338-e2a6-4fff-842a-aaca38cc3bfe","block_type":"box","text":"the knowledge and experience of longer-serving directors and the fresh perspectives of directors who joined more","page_number":212,"box":{"x":68,"y":60,"width":809,"height":11}},{"id":"74e9c83e-334f-483e-9233-0c3a57c8dc7e","block_type":"box","text":"recently.","page_number":212,"box":{"x":69,"y":75,"width":57,"height":11}},{"id":"0f7239ec-6bb0-4a17-8341-2400652e8255","block_type":"box","text":"We appreciate when companies regularly review and assess how directors nominated for election contribute to","page_number":212,"box":{"x":101,"y":98,"width":789,"height":11}},{"id":"7bd0fca5-ebfa-445b-940a-4bd511438ce2","block_type":"box","text":"the effectiveness of the board. In our view, the company’s assessment should consider a number of factors,","page_number":212,"box":{"x":68,"y":113,"width":774,"height":11}},{"id":"cc4ccc30-7f16-4096-91cb-817dabe05ee9","block_type":"box","text":"including each director’s independence and time commitments, as well as the breadth and relevance of director","page_number":212,"box":{"x":70,"y":128,"width":798,"height":11}},{"id":"85135f67-73b3-47d0-acdf-efb612860515","block_type":"box","text":"experiences and skillsets, and how these collectively contribute to the board’s effectiveness in advising and","page_number":212,"box":{"x":69,"y":143,"width":770,"height":11}},{"id":"3f8e5cfc-263b-4e72-a6a9-7c54fecf90fe","block_type":"box","text":"overseeing management in delivering long-term financial returns.","page_number":212,"box":{"x":69,"y":158,"width":459,"height":11}},{"id":"e190e60f-4f66-4e02-9d54-55739975bbb9","block_type":"box","text":"Director independence","page_number":212,"box":{"x":69,"y":188,"width":164,"height":11}},{"id":"a360217a-b16c-483d-8467-e1b0c1769a6d","block_type":"box","text":"Director independence — from management, significant shareholders, or other related par ties — is a central","page_number":212,"box":{"x":102,"y":211,"width":777,"height":11}},{"id":"24eef0c7-eae5-4f04-a227-c4f020dd42d7","block_type":"box","text":"tenet of sound corporate governance across markets.","page_number":212,"box":{"x":68,"y":226,"width":382,"height":11}},{"id":"71f2c240-3992-4e35-a880-c5ffa240e356","block_type":"box","text":"6","page_number":212,"box":{"x":452,"y":226,"width":4,"height":5}},{"id":"8f7415f7-a891-4bf8-9784-dfacb45294f5","block_type":"box","text":"We look to boards to have a sufficient number of independent","page_number":212,"box":{"x":462,"y":226,"width":442,"height":11}},{"id":"6e05adee-73ad-4f54-a5c3-9f271c26a7ff","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":212,"box":{"x":69,"y":241,"width":825,"height":11}},{"id":"3e0af9cb-e6e9-4614-94c2-e0d250e1a01a","block_type":"box","text":"and its ability to oversee management. We generally consider it good practice for independent directors to make a","page_number":212,"box":{"x":69,"y":256,"width":813,"height":12}},{"id":"b01f1eb1-a736-4763-a56b-782a56c9cd0d","block_type":"box","text":"majority of the board, or in the case of controlled companies, at least one-third.","page_number":212,"box":{"x":69,"y":271,"width":566,"height":12}},{"id":"8e32c0c0-b82e-4472-8b55-a9ac1a0406de","block_type":"box","text":"Common impediments to independence may include but are not limited to:","page_number":212,"box":{"x":102,"y":294,"width":531,"height":11}},{"id":"8c569c23-74a4-40ba-beec-d92908a1b5ab","block_type":"box","text":"•","page_number":212,"box":{"x":69,"y":317,"width":6,"height":5}},{"id":"ee641075-0271-48af-b000-43828e236bb6","block_type":"box","text":"Current or recent employment at the company or a subsidiary","page_number":212,"box":{"x":102,"y":314,"width":438,"height":11}},{"id":"e194fefe-bf1f-4ee3-a644-22dad94e9eda","block_type":"box","text":"•","page_number":212,"box":{"x":69,"y":337,"width":6,"height":5}},{"id":"a57eb4c0-98cc-44dd-a141-2c8dc6213ff3","block_type":"box","text":"Being, or representing, a shareholder with a substantial shareholding in the company","page_number":212,"box":{"x":102,"y":335,"width":606,"height":11}},{"id":"32fdb32c-e6ca-4d65-968c-b4a4fa80f20f","block_type":"box","text":"•","page_number":212,"box":{"x":69,"y":357,"width":6,"height":5}},{"id":"5b7ef052-05a2-40bb-8b60-ee1240ba877e","block_type":"box","text":"Interlocking directorates","page_number":212,"box":{"x":102,"y":355,"width":170,"height":11}},{"id":"1a03fda3-ccc6-4656-b1ee-a52cecc571eb","block_type":"box","text":"•","page_number":212,"box":{"x":69,"y":378,"width":6,"height":4}},{"id":"cb39a480-b774-41a2-bbf2-781845f4fb2e","block_type":"box","text":"Having any other interest, business, or other relationship which could, or could reasonably be perceived to,","page_number":212,"box":{"x":102,"y":375,"width":761,"height":11}},{"id":"9acb19c7-4fe3-41bc-a5dc-9fbc778beff4","block_type":"box","text":"materially inter fere with a director’s ability to act in the best interests of the company and shareholders","page_number":212,"box":{"x":102,"y":390,"width":738,"height":11}},{"id":"140dac65-4680-42d1-88ad-a11acf9bd7fd","block_type":"box","text":"In our experience, boards are most effective at overseeing and advising management when there is a senior,","page_number":212,"box":{"x":102,"y":412,"width":775,"height":12}},{"id":"3d72642c-c5f4-472f-953f-1c420175dd47","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":212,"box":{"x":70,"y":428,"width":827,"height":11}},{"id":"3943abfc-c16a-473a-8ac6-51d1e91cd521","block_type":"box","text":"independent), be designated as a lead independent director. The role of this director is to suppor t independent board","page_number":212,"box":{"x":70,"y":443,"width":835,"height":11}},{"id":"a8fc14cd-5ea5-45b7-8e5e-aea889144142","block_type":"box","text":"members in fulfilling their oversight responsibilities effectively by shaping the agenda, ensuring adequate information","page_number":212,"box":{"x":69,"y":458,"width":834,"height":11}},{"id":"9f946fce-c21d-488d-95c0-00e9a17bcfb0","block_type":"box","text":"is provided to the board, and encouraging independent director par ticipation in board deliberations. We appreciate","page_number":212,"box":{"x":70,"y":473,"width":813,"height":11}},{"id":"b26e0cbf-6002-467a-b3f5-4637adbb7470","block_type":"box","text":"when the lead independent director or another appropriate director is available to meet with shareholders to explain","page_number":212,"box":{"x":68,"y":488,"width":826,"height":11}},{"id":"be43d895-132a-4e8c-a0d2-a487ef61ae6b","block_type":"box","text":"and contextualize a company’s approach as a situation warrants.","page_number":212,"box":{"x":69,"y":503,"width":463,"height":11}},{"id":"1a98e172-321a-44a4-9159-4f7182a4382e","block_type":"box","text":"Boards may face matters that could involve conflicts of interest for executives or affiliated directors, or that","page_number":212,"box":{"x":102,"y":526,"width":765,"height":11}},{"id":"7db25dc5-db10-40f1-abda-6040e3d235cb","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":212,"box":{"x":69,"y":541,"width":837,"height":11}},{"id":"3bfd89fd-82b6-4c9c-aec7-96bb7f91e0ee","block_type":"box","text":"committees with a majority of independent directors, depending on market norms and a company’s ownership","page_number":212,"box":{"x":69,"y":556,"width":784,"height":11}},{"id":"4937fa62-ecd7-49a5-a7e9-fd8c58482100","block_type":"box","text":"structure. In many markets, these committees of the board specialize in audit, director nominations, and","page_number":212,"box":{"x":69,"y":571,"width":747,"height":11}},{"id":"35c5c50f-8c85-41d8-b48d-e2fc680118b6","block_type":"box","text":"compensation matters, among others. An ad hoc committee might also be formed to decide on a special transaction,","page_number":212,"box":{"x":69,"y":586,"width":836,"height":12}},{"id":"77df405d-4d90-471f-86c4-60fd384a7626","block_type":"box","text":"par ticularly one involving a related par ty, or to investigate a significant adverse event.","page_number":212,"box":{"x":70,"y":601,"width":607,"height":12}},{"id":"9bcfbba7-c887-4949-9f3f-3383af9a8117","block_type":"box","text":"Sufficient capacity","page_number":212,"box":{"x":68,"y":632,"width":137,"height":11}},{"id":"3fddd939-7faf-40ff-b52d-2152cc55c373","block_type":"box","text":"As the role and expectations of a director are increasingly demanding, directors must be able to commit an","page_number":212,"box":{"x":101,"y":654,"width":763,"height":12}},{"id":"e511b7ae-7bbb-47f1-9170-5734513b27e0","block_type":"box","text":"appropriate amount of time to board and committee matters. It is impor tant that directors have the capacity to meet","page_number":212,"box":{"x":69,"y":669,"width":830,"height":12}},{"id":"949f29ba-3ef3-4c37-91f6-48d08aaed766","block_type":"box","text":"all of their responsibilities — including when there are unforeseen events — and therefore, we consider it best","page_number":212,"box":{"x":69,"y":685,"width":791,"height":11}},{"id":"42e9f47d-3eb0-4f3a-9def-3ba2328d6b9d","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":212,"box":{"x":70,"y":700,"width":804,"height":11}},{"id":"6f657d6b-8b45-44bd-ab51-c6129f2ec74f","block_type":"box","text":"Board composition","page_number":212,"box":{"x":69,"y":730,"width":135,"height":11}},{"id":"1989ea16-6268-4afc-95e8-d10b7dad42ff","block_type":"box","text":"In assessing board composition, we take into account a company’s board size, business model, strategy, market","page_number":212,"box":{"x":102,"y":753,"width":806,"height":11}},{"id":"f6550758-db24-40b1-b343-9adbeefa71c3","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":212,"box":{"x":69,"y":768,"width":836,"height":11}},{"id":"285caab0-cb91-4e4b-96c6-7b4d46d78889","block_type":"box","text":"companies explain how their approach to board composition suppor ts the company’s governance practices.","page_number":212,"box":{"x":69,"y":783,"width":767,"height":11}},{"id":"8131442b-a62d-4eb3-a4c4-32499f29d01f","block_type":"box","text":"When nominating directors to the board, we look to companies to provide sufficient information on the individual","page_number":212,"box":{"x":101,"y":806,"width":802,"height":11}},{"id":"92683ed3-0dd1-4f3a-b28b-6c0637ab6f1a","block_type":"box","text":"candidates so that shareholders can assess the capabilities and suitability of each individual nominee and their fit","page_number":212,"box":{"x":69,"y":821,"width":818,"height":11}},{"id":"63703e12-c1b6-469a-bf98-1be22a082ae5","block_type":"box","text":"within overall board composition. These disclosures should explain how the collective experience and exper tise of the","page_number":212,"box":{"x":68,"y":836,"width":840,"height":11}},{"id":"879ec5c8-1c0c-4b93-93b4-1e764da2d8a4","block_type":"box","text":"board, as well as the par ticular skillsets of individual directors, aligns with the company’s long-term strategy. Highly","page_number":212,"box":{"x":69,"y":851,"width":823,"height":11}},{"id":"7746b167-0f01-49d0-a86d-bea59cfb2be9","block_type":"box","text":"6","page_number":212,"box":{"x":69,"y":881,"width":4,"height":4}},{"id":"4a5eff08-e4a2-4319-a127-cd4af535878a","block_type":"box","text":"For example, please see: Tokyo Stock Exchange, “Japan’s Corporate Governance Code,” June 11, 2021; Financial","page_number":212,"box":{"x":79,"y":880,"width":813,"height":11}},{"id":"4a221565-5a14-4698-bbdb-23b1e3b6cd16","block_type":"box","text":"Repor ting Council, “UK Corporate Governance Code,” January 2024, accessed in December 2025.","page_number":212,"box":{"x":70,"y":895,"width":704,"height":12}},{"id":"d2c9ad65-6f5f-4263-9f19-7ee1f9260743","block_type":"box","text":"BlackRock Investment Stewardship","page_number":212,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"9d60c1f9-4018-4e3a-bab4-a24aa01c787f","block_type":"box","text":"Global Principles | 6","page_number":212,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"a44b0a57-64a3-4b2c-9bcc-e2a5603240e3","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":212,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"019e5f97-ac46-4592-971f-c3326b05a3a5","block_type":"box","text":"qualified, engaged directors with professional characteristics relevant to a company’s business and strategy enhance","page_number":213,"box":{"x":69,"y":45,"width":836,"height":11}},{"id":"a6b685c6-6743-4340-a07e-c48db48f5985","block_type":"box","text":"the ability of the board to add value and be the voice of shareholders in board discussions.","page_number":213,"box":{"x":68,"y":60,"width":650,"height":11}},{"id":"23805bce-f382-4293-a4cc-279727b5c1a6","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":213,"box":{"x":102,"y":82,"width":775,"height":12}},{"id":"6735963c-6cc4-4aef-bd72-8a98c7eb48bf","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":213,"box":{"x":69,"y":98,"width":806,"height":11}},{"id":"377165f0-8615-4b1e-9e7f-e8cc9457c6e9","block_type":"box","text":"oversee management. We note that in many markets, policymakers have set board gender diversity goals which we","page_number":213,"box":{"x":69,"y":113,"width":820,"height":11}},{"id":"935244cd-cbc6-49e3-aa5b-7746f2baa949","block_type":"box","text":"may discuss with companies, par ticularly if there is a risk their board composition may be misaligned.","page_number":213,"box":{"x":69,"y":128,"width":726,"height":11}},{"id":"cdadbefb-e9f2-4f9d-a33d-6d379f57e1e9","block_type":"box","text":"AUDITORS AND AUDIT-RELATED ISSUES","page_number":213,"box":{"x":342,"y":158,"width":293,"height":9}},{"id":"bc13c327-5674-4d34-8977-c4e70bbb52f8","block_type":"box","text":"BIS recognizes the critical impor tance of financial statements to provide a complete and accurate por trayal of a","page_number":213,"box":{"x":102,"y":181,"width":795,"height":11}},{"id":"f875018a-1a1c-4cbc-930a-3443cc7f678e","block_type":"box","text":"company’s financial condition. Accordingly, we look for the assumptions made by management, and reviewed by the","page_number":213,"box":{"x":69,"y":196,"width":825,"height":11}},{"id":"4b9e2777-9b11-4366-a032-ed88a97cb060","block_type":"box","text":"auditor in preparing the financial statements, to be reasonable and justified.","page_number":213,"box":{"x":69,"y":211,"width":543,"height":11}},{"id":"dea1f2fd-034b-4115-bd3c-0754ced10f8c","block_type":"box","text":"We view the audit committee, or its equivalent, as responsible for overseeing the management of the","page_number":213,"box":{"x":101,"y":234,"width":722,"height":11}},{"id":"f67623ee-11c5-40a7-a0ea-cc555dd13b09","block_type":"box","text":"independent auditor and the internal audit function at a company. The committee plays an impor tant role in a","page_number":213,"box":{"x":70,"y":249,"width":778,"height":11}},{"id":"a2fde1e3-aa65-42f5-94e5-84490da289df","block_type":"box","text":"company’s financial repor ting system by providing independent oversight of the accounts, material financial, and,","page_number":213,"box":{"x":69,"y":264,"width":806,"height":11}},{"id":"294ad5a3-086e-4a29-98c7-8fce658b8b40","block_type":"box","text":"where appropriate to the jurisdiction, non-financial information and internal control frameworks. Moreover, in the","page_number":213,"box":{"x":68,"y":279,"width":799,"height":11}},{"id":"09b37d40-1f05-4c2a-b87c-bcc97cd68093","block_type":"box","text":"absence of a dedicated risk committee, these committees can provide oversight of Enterprise Risk Management","page_number":213,"box":{"x":69,"y":294,"width":801,"height":11}},{"id":"7744a934-42d0-4e78-bdf6-09409a53dd20","block_type":"box","text":"systems.","page_number":213,"box":{"x":69,"y":310,"width":62,"height":10}},{"id":"eb25aee6-1526-418f-bf2d-019f3f7c4c53","block_type":"box","text":"7","page_number":213,"box":{"x":133,"y":310,"width":4,"height":4}},{"id":"956832f2-1a97-4952-802d-60be0366ca6c","block_type":"box","text":"In our view, effective audit committee oversight strengthens the quality and reliability of a company’s","page_number":213,"box":{"x":144,"y":309,"width":717,"height":11}},{"id":"58b4c13f-98e1-49ef-86b1-456a4b99565e","block_type":"box","text":"financial statements and provides an impor tant level of reassurance to shareholders.","page_number":213,"box":{"x":68,"y":324,"width":609,"height":11}},{"id":"28c6ddc9-9212-47ed-b9cd-8618a93edb24","block_type":"box","text":"We look to audit committees, or their equivalent, to have clearly ar ticulated char ters that set out their","page_number":213,"box":{"x":101,"y":347,"width":727,"height":11}},{"id":"b0f887a6-1707-4e18-9bdd-7f5cf3b45714","block_type":"box","text":"responsibilities. Additionally, having a rotation plan can periodically refresh the committee membership and introduce","page_number":213,"box":{"x":69,"y":362,"width":835,"height":11}},{"id":"49b4fdf4-8e15-43cf-aae8-da764bbc9655","block_type":"box","text":"new perspectives. We recognize that audit committees will rely on management, internal audit, and the independent","page_number":213,"box":{"x":69,"y":377,"width":827,"height":12}},{"id":"f2434d81-7916-48e6-8318-c09f06e77ea9","block_type":"box","text":"auditor to fulfill their responsibilities. However, we look to committee members to demonstrate they have relevant","page_number":213,"box":{"x":69,"y":392,"width":810,"height":12}},{"id":"41c09521-8bf9-42d1-bed5-91ba17aa09ee","block_type":"box","text":"exper tise to monitor and oversee the audit process and related activities.","page_number":213,"box":{"x":69,"y":408,"width":523,"height":10}},{"id":"cb2db6b9-9604-48dd-b270-f87baff6ac70","block_type":"box","text":"We take par ticular note of unexplained changes in repor ting methodology, cases involving significant financial","page_number":213,"box":{"x":101,"y":430,"width":780,"height":11}},{"id":"d9388ad7-e565-488c-8e57-dfe25f37f260","block_type":"box","text":"restatements, or ad hoc notifications of material financial weakness. In this respect, we look to audit committees to","page_number":213,"box":{"x":69,"y":445,"width":828,"height":11}},{"id":"59e9823a-3d43-4350-b38f-6dbd38939022","block_type":"box","text":"provide timely disclosure on the remediation of key and critical audit matters identified either by the external auditor","page_number":213,"box":{"x":70,"y":460,"width":827,"height":12}},{"id":"1296503a-3822-42e4-9778-230235712c2a","block_type":"box","text":"or internal audit function.","page_number":213,"box":{"x":69,"y":475,"width":178,"height":9}},{"id":"9d234840-2089-40ad-9cda-4c366cd1c835","block_type":"box","text":"The integrity of financial statements depends on the auditor being free of any impediments that could","page_number":213,"box":{"x":101,"y":498,"width":723,"height":11}},{"id":"0e7618a6-6de7-44b5-966f-409d45e4db81","block_type":"box","text":"compromise its ability to serve as an effective check on management. To that end, it is impor tant that auditors are,","page_number":213,"box":{"x":69,"y":513,"width":825,"height":12}},{"id":"ff8547cd-d49d-4be2-a973-43ba46189d45","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":213,"box":{"x":69,"y":528,"width":824,"height":12}},{"id":"38641ede-0258-450c-8781-cfba9aa2eef1","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":213,"box":{"x":70,"y":543,"width":839,"height":11}},{"id":"7ebe2907-8db2-4a59-86aa-5f32a194e756","block_type":"box","text":"assessing the independence of the auditor and the quality of the external audit process on an annual basis.","page_number":213,"box":{"x":69,"y":559,"width":770,"height":11}},{"id":"9c1d7a83-9f80-49f4-b6e9-08728f23b834","block_type":"box","text":"Comprehensive disclosure provides investors with an understanding of the company’s long-term operational risk","page_number":213,"box":{"x":102,"y":581,"width":799,"height":12}},{"id":"ab4b552c-df19-4211-a607-322bcae7bd0b","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":213,"box":{"x":69,"y":596,"width":836,"height":12}},{"id":"7528fbc0-4095-4d83-807b-645ee5487795","block_type":"box","text":"to periodically review the company’s risk assessment and risk management policies and the significant risks and","page_number":213,"box":{"x":68,"y":612,"width":806,"height":11}},{"id":"dc027624-0920-4d7e-9677-6310f87aa724","block_type":"box","text":"exposures identified by management, the internal auditors or the independent auditors, and management’s steps to","page_number":213,"box":{"x":69,"y":627,"width":829,"height":11}},{"id":"eaef751f-72bc-4bbe-89f3-b68013efd2da","block_type":"box","text":"address them. In the absence of detailed disclosures, we may conclude that companies are not adequately managing","page_number":213,"box":{"x":69,"y":642,"width":840,"height":11}},{"id":"0fbbd8ae-fd27-4b44-bbcc-b60ea78b9f73","block_type":"box","text":"risk.","page_number":213,"box":{"x":69,"y":657,"width":28,"height":9}},{"id":"1259ae74-c66c-49cd-a26b-8ee153115c7b","block_type":"box","text":"CAPITAL STRUCTURE, MERGERS, ACQUISITIONS, ASSET SALES, AND OTHER SPECIAL SITUATIONS","page_number":213,"box":{"x":125,"y":687,"width":728,"height":11}},{"id":"f582b8f0-0672-4cbd-91fe-5e27fa559dec","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":213,"box":{"x":101,"y":710,"width":798,"height":11}},{"id":"013b7725-3bf5-4208-af8b-368646da690e","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":213,"box":{"x":70,"y":725,"width":824,"height":11}},{"id":"3f447a74-ed04-4b14-b908-0ab3bc5e241c","block_type":"box","text":"protection for shareholders against the dilution of their interests.","page_number":213,"box":{"x":70,"y":740,"width":460,"height":11}},{"id":"266d991a-6cc9-454f-8a42-e2a8ba0e7f9c","block_type":"box","text":"In principle, we have concerns with the creation of a share class with equivalent economic exposure and","page_number":213,"box":{"x":102,"y":763,"width":743,"height":11}},{"id":"a188e8dc-31e1-45e4-8052-6ce4d0500436","block_type":"box","text":"differentiated voting rights. As a result, BIS generally suppor ts bylaw amendments that introduce the adoption of","page_number":213,"box":{"x":69,"y":778,"width":805,"height":11}},{"id":"c3b10edc-01ec-4e6e-9e14-5265e7ac2d1a","block_type":"box","text":"“one share, one vote” for registered shareholders.","page_number":213,"box":{"x":70,"y":793,"width":358,"height":11}},{"id":"dc64f61f-5ec9-4040-9550-6c29f8abb854","block_type":"box","text":"7","page_number":213,"box":{"x":69,"y":823,"width":4,"height":4}},{"id":"5c5ef731-b402-4b9f-8455-ffd3b64b8dd8","block_type":"box","text":"Enterprise Risk Management is a process, effected by the entity’s board of directors, management, and other","page_number":213,"box":{"x":79,"y":822,"width":784,"height":12}},{"id":"a5d6c2d6-a447-49be-a9ef-05e09f3a203b","block_type":"box","text":"personnel, applied in strategy setting and across the enterprise, designed to identify potential events that may affect","page_number":213,"box":{"x":70,"y":837,"width":834,"height":12}},{"id":"12a56f75-81b3-4a22-b1c3-db75df8a1a72","block_type":"box","text":"the entity, and manage risk to be within the risk appetite, to provide reasonable assurance regarding the achievement","page_number":213,"box":{"x":68,"y":853,"width":841,"height":11}},{"id":"dabcf8b6-c769-4662-9a02-6747480dab5d","block_type":"box","text":"of objectives. Please see: The Committee of Sponsoring Organizations of the Treadway Commission (COSO),","page_number":213,"box":{"x":69,"y":868,"width":771,"height":11}},{"id":"c353f98c-e7b2-4bf8-8f44-f3f095383159","block_type":"box","text":"“Enterprise Risk Management,” 2023, accessed in December 2025.","page_number":213,"box":{"x":70,"y":883,"width":488,"height":11}},{"id":"ebf75df8-e6a0-495c-ba30-a3f6ed62cae1","block_type":"box","text":"BlackRock Investment Stewardship","page_number":213,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"4b46ea6a-539c-43ed-9ff6-2d66013cb444","block_type":"box","text":"Global Principles | 7","page_number":213,"box":{"x":768,"y":942,"width":140,"height":13}},{"id":"e9cceba8-3c92-46fe-84ff-a752f3eeb3c9","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":213,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"863328fd-25e3-4ee0-ad07-d3afa771de73","block_type":"box","text":"However, we recognize that in cer tain markets, at least for a period of time, companies may have a valid reason","page_number":214,"box":{"x":102,"y":45,"width":798,"height":11}},{"id":"ba229776-0837-4c70-9b8c-ae469271ae7c","block_type":"box","text":"for listing dual classes of shares with differentiated voting rights. In our view, such companies should review these","page_number":214,"box":{"x":68,"y":60,"width":818,"height":11}},{"id":"d77a861c-b50a-4775-b0bb-b5962bd47755","block_type":"box","text":"share class structures on a regular basis or as company circumstances change. Additionally, they should seek","page_number":214,"box":{"x":69,"y":75,"width":788,"height":11}},{"id":"f2cd45d0-73a2-4f17-9105-b3e1f81c067c","block_type":"box","text":"shareholder approval of their capital structure on a periodic basis via a management proposal at the company’s","page_number":214,"box":{"x":69,"y":90,"width":797,"height":11}},{"id":"b2618fb9-2875-471b-8825-90bc53c46752","block_type":"box","text":"shareholder meeting. The proposal should give unaffiliated shareholders the oppor tunity to affirm the current","page_number":214,"box":{"x":69,"y":105,"width":780,"height":11}},{"id":"d2623b29-bf96-4883-b6a6-5ef8a612b3ae","block_type":"box","text":"structure or establish mechanisms to end or phase out controlling structures at the appropriate time, while","page_number":214,"box":{"x":69,"y":120,"width":764,"height":12}},{"id":"01777bf1-716a-4da9-b070-7b074741580a","block_type":"box","text":"minimizing costs to shareholders.","page_number":214,"box":{"x":69,"y":136,"width":238,"height":11}},{"id":"25e8da25-19be-4222-b2ac-c5d09d63a0a3","block_type":"box","text":"In assessing mergers, asset sales, or other special situations, BIS’ primary consideration is the long-term","page_number":214,"box":{"x":102,"y":158,"width":756,"height":11}},{"id":"bb8ef8d6-5cb2-471a-9cec-00edf4928605","block_type":"box","text":"financial interests of our clients as shareholders, and so we will review any proposed transaction with that objective","page_number":214,"box":{"x":68,"y":173,"width":826,"height":11}},{"id":"87568239-f439-4e62-aaae-607a68dbac6c","block_type":"box","text":"in mind. Typically, we review factors such as whether the proposed transaction has the unanimous suppor t of the","page_number":214,"box":{"x":70,"y":188,"width":806,"height":11}},{"id":"9257309c-dd1e-409a-a0e5-14f6ee314766","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":214,"box":{"x":69,"y":204,"width":799,"height":11}},{"id":"41834bd2-4acd-452f-9eff-9ff28d11ccc1","block_type":"box","text":"economic and strategic rationale. We may also seek reassurance from the board that the financial interests of","page_number":214,"box":{"x":69,"y":218,"width":788,"height":12}},{"id":"85e26b6c-42f2-4a25-9c52-c3f0b0516a49","block_type":"box","text":"executives and/or board members in a given transaction have not adversely affected their ability to place","page_number":214,"box":{"x":69,"y":234,"width":750,"height":11}},{"id":"3f1fb356-f827-4123-8796-6b732e90a0c6","block_type":"box","text":"shareholders’ interests before their own. Where the transaction involves related par ties, the recommendation to","page_number":214,"box":{"x":69,"y":249,"width":801,"height":11}},{"id":"4b6cb5aa-068f-4a87-8c83-2608cfb66e55","block_type":"box","text":"suppor t should come from the independent directors, a best practice in most markets, and ideally, the terms should","page_number":214,"box":{"x":69,"y":264,"width":830,"height":11}},{"id":"cb0fc764-3cce-4954-a3ef-621a1baa407b","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":214,"box":{"x":69,"y":279,"width":836,"height":11}},{"id":"7f0ee0b3-16aa-4ea8-8501-1220aca26ce7","block_type":"box","text":"a separate vote of the non-conflicted par ties.","page_number":214,"box":{"x":69,"y":294,"width":320,"height":11}},{"id":"144cc01e-a43c-490c-93aa-b063abae9526","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":214,"box":{"x":101,"y":317,"width":806,"height":11}},{"id":"5cfc3217-df55-4d4f-918a-4b0fa9755373","block_type":"box","text":"open market without unnecessary restriction. In our view, corporate mechanisms designed to limit shareholders’","page_number":214,"box":{"x":69,"y":332,"width":801,"height":11}},{"id":"78491273-71c2-402c-b1e3-9b79b32d6c51","block_type":"box","text":"ability to sell their shares are contrary to basic proper ty rights. Such mechanisms can serve to protect and entrench","page_number":214,"box":{"x":69,"y":347,"width":829,"height":11}},{"id":"92fff238-0b5c-4c1f-8b3e-a6979d7a7846","block_type":"box","text":"interests other than those of the shareholders. In our view, shareholders are broadly capable of making decisions in","page_number":214,"box":{"x":70,"y":362,"width":826,"height":11}},{"id":"dadcfc01-319b-49c7-9430-b72a7be824a3","block_type":"box","text":"their own best interests. We encourage any shareholder rights plans proposed by a board to be subject to","page_number":214,"box":{"x":68,"y":377,"width":755,"height":12}},{"id":"44baa376-ae34-4cb3-bdf4-0e17e558993a","block_type":"box","text":"shareholder approval upon introduction and periodically thereafter.","page_number":214,"box":{"x":69,"y":392,"width":472,"height":12}},{"id":"6113a567-3aef-4f15-ac2b-8c09e67713df","block_type":"box","text":"EXECUTIVE COMPENSATION AND BENEFITS","page_number":214,"box":{"x":328,"y":423,"width":322,"height":9}},{"id":"b6acb6aa-1052-415d-92cf-0290c944d803","block_type":"box","text":"Executive compensation is an impor tant tool used by companies to suppor t long-term financial value creation. A","page_number":214,"box":{"x":102,"y":445,"width":799,"height":12}},{"id":"a0118bca-33b8-45f6-a001-a8a68ed571ec","block_type":"box","text":"well-structured compensation policy rewards the successful delivery of strategic, operational, and/or financial goals;","page_number":214,"box":{"x":68,"y":460,"width":830,"height":12}},{"id":"5c88fbd2-235e-4e54-a9d8-1aad4c474aae","block_type":"box","text":"encourages an appropriate risk appetite; and aligns the interests of shareholders and executives through equity","page_number":214,"box":{"x":69,"y":475,"width":797,"height":12}},{"id":"a4fe9bbb-cc95-42cb-855e-552b66a66cd4","block_type":"box","text":"ownership.","page_number":214,"box":{"x":69,"y":491,"width":75,"height":11}},{"id":"ab918ae1-d2f5-4be8-9b34-1b282e2e4dea","block_type":"box","text":"8","page_number":214,"box":{"x":146,"y":491,"width":4,"height":4}},{"id":"fa1b2838-827e-421e-b666-b97d8a9c10a9","block_type":"box","text":"We look for a clear link between variable pay and operational and financial per formance that suppor t sustained","page_number":214,"box":{"x":101,"y":513,"width":793,"height":11}},{"id":"cbfc7620-6725-4ef8-be7f-e5f4826199cf","block_type":"box","text":"financial value creation for our clients as shareholders. We appreciate when per formance targets incorporate","page_number":214,"box":{"x":68,"y":528,"width":778,"height":12}},{"id":"91f43f04-a093-4e73-9b11-7c83a5776417","block_type":"box","text":"ambitious objectives, and the corresponding metrics are aligned with the company’s strategy and business model.","page_number":214,"box":{"x":69,"y":544,"width":815,"height":11}},{"id":"0856efc1-2180-4ad7-bd27-815759f96034","block_type":"box","text":"BIS does not have a position on whether companies choose to use sustainability-related criteria in compensation","page_number":214,"box":{"x":70,"y":559,"width":804,"height":11}},{"id":"76e2b687-937e-4b4e-8d7c-412c1757e459","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":214,"box":{"x":69,"y":574,"width":814,"height":11}},{"id":"092660eb-a878-43b5-9fb5-8a7b01df56c7","block_type":"box","text":"financial or operational targets. We appreciate when long-term incentive plans encompass timeframes that: 1) are","page_number":214,"box":{"x":68,"y":589,"width":813,"height":11}},{"id":"cb0e02ef-7ea1-47ee-a08c-85071f3a8772","block_type":"box","text":"distinct from annual executive compensation structures and metrics, and 2) encourage the delivery of strong financial","page_number":214,"box":{"x":69,"y":604,"width":839,"height":11}},{"id":"574a7786-06b6-47f9-b44b-60ff03fac2ca","block_type":"box","text":"results over a period of years.","page_number":214,"box":{"x":69,"y":619,"width":211,"height":11}},{"id":"e5fd8eac-5681-4688-8566-ad6ddff9a43d","block_type":"box","text":"We consider it best practice when board members responsible for designing and approving executive","page_number":214,"box":{"x":101,"y":642,"width":718,"height":11}},{"id":"1169fdda-16a9-404d-9905-156ced5ffd24","block_type":"box","text":"compensation carefully consider the company’s specific circumstances. Factors to consider may include the","page_number":214,"box":{"x":69,"y":657,"width":770,"height":11}},{"id":"767fed11-59a1-440d-b3aa-bbdbdd2aa221","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":214,"box":{"x":69,"y":672,"width":838,"height":11}},{"id":"024897a5-3593-4470-8b52-21ea2948453f","block_type":"box","text":"look to the compensation committees to guard against contractual arrangements that would entitle executives to","page_number":214,"box":{"x":70,"y":687,"width":804,"height":11}},{"id":"9298a7ec-dcf9-4921-9fd2-db469aa8f260","block_type":"box","text":"material compensation for early termination of their employment. Finally, we look for pension contributions and other","page_number":214,"box":{"x":69,"y":702,"width":831,"height":11}},{"id":"65ae4350-041d-4489-b1ce-7a4dab9f01ad","block_type":"box","text":"deferred compensation arrangements to be reasonable in light of market practices or the company’s business and","page_number":214,"box":{"x":69,"y":717,"width":817,"height":12}},{"id":"a0f2d3fa-543d-4883-8389-90dec2e2ac86","block_type":"box","text":"executive compensation strategies.","page_number":214,"box":{"x":69,"y":733,"width":250,"height":11}},{"id":"29a424b9-32d9-4cfa-91eb-ee93621be71f","block_type":"box","text":"We are not suppor tive of one-off or special bonuses unrelated to company or individual per formance. Where","page_number":214,"box":{"x":101,"y":755,"width":772,"height":11}},{"id":"d7582b92-5651-47b6-928b-18db7141bd86","block_type":"box","text":"discretion has been used by the compensation committee, or its equivalent, we appreciate disclosure relating to how","page_number":214,"box":{"x":69,"y":771,"width":836,"height":11}},{"id":"69d5419d-f6f1-4d57-a6d3-d81e1078422e","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":214,"box":{"x":69,"y":785,"width":803,"height":12}},{"id":"002de624-7a25-4f57-921a-b924d53f883f","block_type":"box","text":"addition, we acknowledge that the use of peer group evaluation by compensation committees can help ensure","page_number":214,"box":{"x":69,"y":801,"width":785,"height":11}},{"id":"a8fe2c1b-d930-4aaa-a84e-c40a5317c3d6","block_type":"box","text":"competitive pay. However, we encourage companies to clearly explain how compensation outcomes have rewarded","page_number":214,"box":{"x":69,"y":816,"width":815,"height":11}},{"id":"6785a839-163e-436c-b7d2-f8bca2817daf","block_type":"box","text":"per formance rather than solely base increases in total compensation on peer benchmarking.","page_number":214,"box":{"x":70,"y":831,"width":659,"height":11}},{"id":"9b61d9e7-c8f0-4e50-aa7d-0bfca63fa4ad","block_type":"box","text":"8","page_number":214,"box":{"x":69,"y":860,"width":4,"height":5}},{"id":"77fe3887-6cd6-422e-bd5b-ecd63ed8bc1c","block_type":"box","text":"The terms “compensation,” “remuneration,” and “pay” are used interchangeably to describe the same concept in","page_number":214,"box":{"x":78,"y":860,"width":811,"height":11}},{"id":"8ba0c6b7-9aa2-4e89-be16-13f5b27d832e","block_type":"box","text":"different markets.","page_number":214,"box":{"x":69,"y":875,"width":126,"height":9}},{"id":"2320dc63-b42d-4963-8235-529f2cdf2c09","block_type":"box","text":"BlackRock Investment Stewardship","page_number":214,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"a6a932bf-e3c1-4bf0-9126-e624941d3a29","block_type":"box","text":"Global Principles | 8","page_number":214,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"6cbaf2ec-d708-4b8e-8abe-6566d238a4ab","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":214,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"de077ff9-1bf7-42ae-8b4b-4a4db87f8afd","block_type":"box","text":"We consider the inclusion of building clawback provisions into incentive plans as good practice. Such provisions","page_number":215,"box":{"x":101,"y":45,"width":797,"height":11}},{"id":"6bb3ba8d-cb49-4f58-a0b5-0591087ed8b4","block_type":"box","text":"could require executives to forgo awards when compensation was based on faulty financial statements or deceptive","page_number":215,"box":{"x":69,"y":60,"width":825,"height":11}},{"id":"29f70abe-e944-45c0-9118-8527cb71df67","block_type":"box","text":"business practices, or when their behavior caused material financial harm to shareholders, material reputational risk","page_number":215,"box":{"x":69,"y":75,"width":833,"height":11}},{"id":"4a8f6667-108a-4766-b228-f417a14460db","block_type":"box","text":"to the company, or resulted in a criminal investigation.","page_number":215,"box":{"x":68,"y":90,"width":386,"height":11}},{"id":"77ec7ef3-fcd5-4f13-a81d-2d074074e6a3","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":215,"box":{"x":102,"y":113,"width":803,"height":11}},{"id":"d12dc04f-4d88-41cb-bd5a-d32194ff53a6","block_type":"box","text":"effor t expended in fulfilling their professional responsibilities. Additionally, these compensation arrangements should","page_number":215,"box":{"x":69,"y":128,"width":834,"height":11}},{"id":"1e3bbdac-c2b4-4025-8ea3-0709f063aae7","block_type":"box","text":"not risk compromising directors’ independence or aligning their interests too closely with those of the management,","page_number":215,"box":{"x":69,"y":143,"width":825,"height":11}},{"id":"b48cfe8a-f511-40d0-820b-d58be282cd43","block_type":"box","text":"whom they are charged with overseeing.","page_number":215,"box":{"x":68,"y":158,"width":285,"height":11}},{"id":"6adfafae-49db-4d67-baf8-e05998440166","block_type":"box","text":"When assessing compensation proposals, BIS reviews companies’ disclosures to determine whether the board’s","page_number":215,"box":{"x":101,"y":181,"width":807,"height":11}},{"id":"4228f76d-dc15-49dc-91ef-c432566bc586","block_type":"box","text":"approach to executive compensation is rigorous in light of the company’s stated long-term corporate strategy and","page_number":215,"box":{"x":69,"y":196,"width":807,"height":11}},{"id":"86c8ffdd-efd6-4600-962b-b07be0b67a12","block_type":"box","text":"specific circumstances, as well as local market and policy developments.","page_number":215,"box":{"x":69,"y":211,"width":521,"height":11}},{"id":"bd7e5e62-d1bb-4ee3-8cf0-31c8646e338b","block_type":"box","text":"When our analysis indicates that executive compensation is misaligned with company per formance, BIS may not","page_number":215,"box":{"x":101,"y":234,"width":802,"height":11}},{"id":"683b0ee6-7bf3-47c7-8d5e-19098702fa6f","block_type":"box","text":"suppor t management’s proposals to approve compensation, where they are on the agenda. We may also not suppor t","page_number":215,"box":{"x":69,"y":249,"width":838,"height":11}},{"id":"e644497b-b045-40d9-9045-646d3f97e351","block_type":"box","text":"members of the compensation committee or equivalent board members for poor compensation practices or","page_number":215,"box":{"x":69,"y":264,"width":766,"height":11}},{"id":"8b22474f-df99-46d8-9395-be82d6ed98e6","block_type":"box","text":"structures.","page_number":215,"box":{"x":69,"y":280,"width":76,"height":8}},{"id":"7c1cdf74-5465-4039-a592-45017191e6bd","block_type":"box","text":"SHAREHOLDER PROTECTIONS AND OTHER CORPORATE GOVERNANCE MATTERS","page_number":215,"box":{"x":191,"y":309,"width":595,"height":9}},{"id":"55dea590-b7f8-4072-a19f-42b9edcf0fbd","block_type":"box","text":"Corporate form","page_number":215,"box":{"x":69,"y":339,"width":108,"height":11}},{"id":"bbf59f77-fd30-4480-90e9-313258b6c1c6","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":215,"box":{"x":102,"y":362,"width":781,"height":11}},{"id":"141edd7e-c3cf-4b16-9abc-e9acc488a960","block_type":"box","text":"the company’s purpose and business model.","page_number":215,"box":{"x":68,"y":377,"width":320,"height":11}},{"id":"1abdde0d-e677-4833-9f49-9789a9a8bba0","block_type":"box","text":"9","page_number":215,"box":{"x":390,"y":378,"width":4,"height":4}},{"id":"bcd8ef23-8318-4a3f-8368-e41de59e8efc","block_type":"box","text":"We look to companies proposing to change their corporate form to a","page_number":215,"box":{"x":399,"y":377,"width":487,"height":12}},{"id":"ee221a2b-f43e-48a4-8c36-c4cfbcaa0d50","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":215,"box":{"x":70,"y":392,"width":791,"height":12}},{"id":"4ccdb9c9-189f-4523-ba84-56c767d2bd41","block_type":"box","text":"applicable law. We appreciate when suppor ting documentation from companies or shareholders proposing to alter the","page_number":215,"box":{"x":69,"y":407,"width":839,"height":12}},{"id":"142c06ed-67af-45f0-aa8f-163d296cd743","block_type":"box","text":"corporate form clearly explains how the interests of shareholders and different stakeholders would be impacted as","page_number":215,"box":{"x":69,"y":423,"width":818,"height":11}},{"id":"9b9a44ef-060d-4987-bf96-64f063b2df14","block_type":"box","text":"well as the accountability and voting mechanisms that would be available to shareholders. We generally suppor t","page_number":215,"box":{"x":68,"y":438,"width":800,"height":11}},{"id":"14e07d6f-cf23-48ff-95e5-e498731825ad","block_type":"box","text":"management proposals if our analysis indicates that shareholders’ financial interests are adequately protected.","page_number":215,"box":{"x":69,"y":453,"width":796,"height":11}},{"id":"cbcd0943-3b14-4211-aa72-f0e833baffa8","block_type":"box","text":"Corporate form shareholder proposals are evaluated on a case-by-case basis.","page_number":215,"box":{"x":69,"y":468,"width":552,"height":11}},{"id":"cc27f44d-c672-46f1-a6a0-9d9457044730","block_type":"box","text":"SHAREHOLDER PROPOSALS","page_number":215,"box":{"x":385,"y":498,"width":207,"height":9}},{"id":"da5eeeb9-79e3-41dd-a5cb-49be4ae7bd1d","block_type":"box","text":"In most markets, shareholders can submit proposals to be voted on at a company’s shareholder meeting, as","page_number":215,"box":{"x":102,"y":521,"width":777,"height":11}},{"id":"17426ebe-93eb-4e71-9243-2cd1b80cb850","block_type":"box","text":"long as cer tain requirements are met. Shareholder proposals span a wide range of topics, including governance","page_number":215,"box":{"x":70,"y":536,"width":796,"height":11}},{"id":"2159bfaa-e4d7-4c38-a98d-6a08336e3e64","block_type":"box","text":"reforms, capital management, and changes in the management or disclosure of sustainability-related risks. These","page_number":215,"box":{"x":69,"y":551,"width":813,"height":11}},{"id":"5fd96559-5b09-4c22-be19-69d0a3b1fbd9","block_type":"box","text":"proposals have a varying degree of relevance for companies across sectors, locations, and business models.","page_number":215,"box":{"x":70,"y":566,"width":779,"height":11}},{"id":"81ec21de-20e1-4433-8dda-1f28c2ed60ac","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":215,"box":{"x":102,"y":589,"width":775,"height":11}},{"id":"43a5639b-c1dd-46b7-b8eb-6250f8bf9af4","block_type":"box","text":"proposal’s implications for long-term financial value creation for shareholders. Our analysis considers whether a","page_number":215,"box":{"x":70,"y":604,"width":796,"height":11}},{"id":"c9f49b01-9208-449f-94ff-9e91c6eefae6","block_type":"box","text":"shareholder proposal addresses a material risk that may impact a company’s long-term financial per formance. BIS","page_number":215,"box":{"x":69,"y":619,"width":818,"height":11}},{"id":"a28880bb-cbd3-404d-9b0b-45863b182b26","block_type":"box","text":"may suppor t shareholder proposals that request disclosures that help us, as long-term investors on behalf of our","page_number":215,"box":{"x":69,"y":634,"width":809,"height":12}},{"id":"14cd4b3e-b527-40ba-afcf-5b02640d2cb7","block_type":"box","text":"clients, better understand the material risks and oppor tunities companies face and how they are managing them,","page_number":215,"box":{"x":69,"y":649,"width":807,"height":12}},{"id":"4e77764e-0a9d-4e07-b37c-444f78e32d8c","block_type":"box","text":"especially where this information is additive given the company’s existing disclosures. We look for consistency","page_number":215,"box":{"x":69,"y":664,"width":787,"height":12}},{"id":"642e101a-714f-441c-b19b-293ce1c3aade","block_type":"box","text":"between the specific request formally made in the proposal, the suppor ting documentation, and the proponents’","page_number":215,"box":{"x":69,"y":680,"width":801,"height":11}},{"id":"87bdb152-e03e-4901-ac41-b6b06753cac3","block_type":"box","text":"other communications on the issues. We also assess the company’s practices and disclosures and the costs and","page_number":215,"box":{"x":69,"y":695,"width":813,"height":11}},{"id":"3d9d79bd-5542-437c-92ba-c60fd63f34ca","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":215,"box":{"x":69,"y":710,"width":791,"height":11}},{"id":"29a56239-ba26-40b0-99f8-3481b3f011e8","block_type":"box","text":"governance practices and disclosures against those of their peers.","page_number":215,"box":{"x":68,"y":725,"width":475,"height":11}},{"id":"e1d3d409-9129-4051-9184-c913b8a9df8b","block_type":"box","text":"BIS does not suppor t shareholder proposals that we view as inconsistent with long-term financial value or that","page_number":215,"box":{"x":102,"y":748,"width":787,"height":11}},{"id":"1ca59197-10a1-46f9-9506-86d4caa9f4d0","block_type":"box","text":"seek to micromanage companies. We take into consideration the legal effect of the proposal, as shareholder","page_number":215,"box":{"x":69,"y":763,"width":778,"height":11}},{"id":"6da281e0-8864-43a3-ab38-59ed24d0c3ef","block_type":"box","text":"proposals may be advisory or legally binding depending on the jurisdiction, while others may make requests that","page_number":215,"box":{"x":70,"y":778,"width":799,"height":11}},{"id":"7e7f1714-034e-4ea6-9fb3-5e8fd3c5cdae","block_type":"box","text":"would be deemed illegal in a given jurisdiction.","page_number":215,"box":{"x":68,"y":793,"width":331,"height":11}},{"id":"98d8ac78-7a69-4d86-b898-2edb50b0be9d","block_type":"box","text":"In our experience, it is helpful when companies disclose the names of the proponent or organization that has","page_number":215,"box":{"x":102,"y":816,"width":777,"height":11}},{"id":"a5887dcf-ea45-4102-88fe-e40f985fd6b0","block_type":"box","text":"submitted or advised on the proposal. We recognize that some shareholder proposals bundle topics and/or specific","page_number":215,"box":{"x":69,"y":831,"width":825,"height":11}},{"id":"18bc8630-41b7-4896-8107-3026895f8c47","block_type":"box","text":"requests. Fur ther, the proponent’s suppor ting statement may refer to topics that are not directly related to the","page_number":215,"box":{"x":69,"y":846,"width":788,"height":11}},{"id":"6924b0ab-8a6c-43b9-84a3-0c6f83bb077a","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":215,"box":{"x":69,"y":861,"width":820,"height":11}},{"id":"d107190b-508b-4452-944e-4b6f7b0341c0","block_type":"box","text":"the proponent. Therefore, when we vote in suppor t of a proposal, we are not necessarily endorsing every element of","page_number":215,"box":{"x":68,"y":876,"width":831,"height":11}},{"id":"ffb67d47-0e27-4c63-9e53-a3238eba5826","block_type":"box","text":"9","page_number":215,"box":{"x":69,"y":906,"width":4,"height":4}},{"id":"5c1a409b-b42e-4033-a918-58aa61280ab6","block_type":"box","text":"Corporate form refers to the legal structure by which a business is organized.","page_number":215,"box":{"x":79,"y":905,"width":550,"height":12}},{"id":"713819ad-ac34-4742-92c7-3fc64ea6becc","block_type":"box","text":"BlackRock Investment Stewardship","page_number":215,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"a079a288-ae17-4e47-ac5f-e4657ba58142","block_type":"box","text":"Global Principles | 9","page_number":215,"box":{"x":768,"y":942,"width":141,"height":13}},{"id":"beb8e3df-4edf-4ed6-b8e8-c8f6a33558e3","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":215,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"a46c0dd4-fecc-455e-9fff-888eae19237c","block_type":"box","text":"the proposal or the reasoning, objectives, or suppor ting statement of the proponent. We may suppor t a proposal for","page_number":216,"box":{"x":68,"y":45,"width":829,"height":11}},{"id":"5f8ee2e7-799d-4736-ab31-ad7cc921cc2d","block_type":"box","text":"different reasons than those put for th by the proponent, when we believe that overall it may advance our clients’","page_number":216,"box":{"x":69,"y":60,"width":802,"height":11}},{"id":"349d8c28-9484-45c2-831e-611f4dab6eba","block_type":"box","text":"long-term financial interests.","page_number":216,"box":{"x":70,"y":75,"width":201,"height":11}},{"id":"ff4da8fc-9fec-48c7-8ec5-21a90ba7bc6d","block_type":"box","text":"BlackRock is subject to cer tain rules, regulations, agency guidance, and contractual agreements that place","page_number":216,"box":{"x":102,"y":98,"width":763,"height":11}},{"id":"e3cc388e-d48f-4b1e-979a-9f32f2f9f598","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":216,"box":{"x":69,"y":113,"width":809,"height":11}},{"id":"c50b7769-d478-4302-921c-108cfc440fbf","block_type":"box","text":"clients. BlackRock does not nominate directors for board elections or submit shareholder proposals to companies.","page_number":216,"box":{"x":69,"y":128,"width":817,"height":11}},{"id":"e16e5b99-5d9f-4cc7-b29c-70e0a82d3994","block_type":"box","text":"Non-compliance with these requirements could adversely affect BlackRock’s ability to serve its clients’ interests.","page_number":216,"box":{"x":70,"y":143,"width":803,"height":11}},{"id":"11a355fa-19a1-4a3e-8f91-ce663ce7e376","block_type":"box","text":"MATERIAL SUSTAINABILITY-RELATED RISKS AND OPPORTUNITIES","page_number":216,"box":{"x":247,"y":173,"width":484,"height":9}},{"id":"cfad5bd0-9e4d-45f4-8f75-a31c788d2a29","block_type":"box","text":"Appropriate oversight of material risks and oppor tunities, including material sustainability-related risks and","page_number":216,"box":{"x":101,"y":196,"width":760,"height":11}},{"id":"b383149c-30f4-4c13-b706-e6f2efed24a4","block_type":"box","text":"oppor tunities, is an impor tant component of having an effective governance framework that suppor ts durable, long","page_number":216,"box":{"x":69,"y":211,"width":824,"height":11}},{"id":"ceeb1daf-1e46-4992-98a7-5c46db786e27","block_type":"box","text":"term financial value creation.","page_number":216,"box":{"x":68,"y":226,"width":206,"height":9}},{"id":"cd3026ac-0ba4-4b27-9bdf-cf09b8cbc02e","block_type":"box","text":"10","page_number":216,"box":{"x":276,"y":226,"width":9,"height":5}},{"id":"957436e1-d25e-4bc1-96ad-8dc884e008d3","block_type":"box","text":"We look to companies to provide robust disclosure that allows investors to effectively evaluate companies’","page_number":216,"box":{"x":101,"y":249,"width":761,"height":11}},{"id":"e52ae36d-bdba-4736-bae2-4f4dfba2c9a3","block_type":"box","text":"strategy and business practices related to material sustainability-related risks and oppor tunities. We find it helpful","page_number":216,"box":{"x":69,"y":264,"width":814,"height":11}},{"id":"fa9f25f4-0487-4e84-92c7-45ec9936813b","block_type":"box","text":"when companies’ disclosures demonstrate that they have a resilient business model that integrates material","page_number":216,"box":{"x":68,"y":279,"width":777,"height":11}},{"id":"edc63b7d-224b-4c49-95ef-733bacf126c6","block_type":"box","text":"sustainability-related risks and oppor tunities into their strategy, risk management, and metrics and targets, including","page_number":216,"box":{"x":69,"y":294,"width":833,"height":11}},{"id":"45d3b61d-e5d6-4c70-a5f9-334e74b405af","block_type":"box","text":"industry-specific metrics.","page_number":216,"box":{"x":70,"y":309,"width":175,"height":11}},{"id":"f98c29cf-3a0f-4288-bf23-47f3468a0ee2","block_type":"box","text":"Standardized disclosure of sustainability-related data suppor ts investors in making informed decisions. The","page_number":216,"box":{"x":102,"y":332,"width":765,"height":11}},{"id":"31d396c1-20eb-4433-8b7f-99a28dc1ac7b","block_type":"box","text":"International Sustainability Standards Board (ISSB) standards, IFRS S1 and S2, represent one such approach to","page_number":216,"box":{"x":70,"y":347,"width":800,"height":11}},{"id":"a393fe8b-f592-4151-9a79-8d16a631d487","block_type":"box","text":"standardization that we find useful in our analysis.","page_number":216,"box":{"x":69,"y":362,"width":358,"height":11}},{"id":"d2030ee3-d9bd-4f20-9b22-0829c2937d40","block_type":"box","text":"11","page_number":216,"box":{"x":429,"y":363,"width":9,"height":4}},{"id":"6230daf7-7661-4b6e-a4ee-a473469f65fb","block_type":"box","text":"However, we do not mandate any specific disclosure framework","page_number":216,"box":{"x":444,"y":362,"width":451,"height":11}},{"id":"9a12339f-b4a7-4751-8e31-d5b4e2567407","block_type":"box","text":"companies should use, and recognize that companies may repor t using different standards, some of which may be","page_number":216,"box":{"x":69,"y":377,"width":821,"height":12}},{"id":"75617fd0-52b7-4ef5-8ab1-146a48494bdf","block_type":"box","text":"required by regulation. In such cases, we ask that companies highlight the metrics that are industry- or company","page_number":216,"box":{"x":69,"y":393,"width":806,"height":11}},{"id":"02bc0437-d88b-4f8f-b0be-4988277428e3","block_type":"box","text":"specific.","page_number":216,"box":{"x":69,"y":407,"width":57,"height":11}},{"id":"54db3a72-0a18-490f-996d-4b010c69597d","block_type":"box","text":"We also recognize that companies may be phasing in repor ting over several years. We do not prescribe timelines","page_number":216,"box":{"x":101,"y":430,"width":805,"height":11}},{"id":"a9aa4f8d-a9ae-46c3-b018-6efb0a669e64","block_type":"box","text":"regarding when companies should make sustainability-related disclosures but appreciate it when companies produce","page_number":216,"box":{"x":69,"y":446,"width":833,"height":11}},{"id":"9d233d4a-0b11-448a-a00f-7a325cfd3611","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":216,"box":{"x":68,"y":460,"width":830,"height":12}},{"id":"77330ec6-b307-4f6a-bcf4-3252fce82383","block_type":"box","text":"to assess the data and make informed voting decisions.","page_number":216,"box":{"x":68,"y":475,"width":401,"height":12}},{"id":"fe1c7de4-0685-4117-981d-705ad21b254b","block_type":"box","text":"Industry initiatives on managing specific operational risks may also provide useful guidance to companies on","page_number":216,"box":{"x":102,"y":498,"width":775,"height":11}},{"id":"b7c65b7a-4432-48ca-aaed-0193cb13062a","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":216,"box":{"x":69,"y":513,"width":804,"height":12}},{"id":"c511f813-0a21-494c-8fe1-1c3780e913d1","block_type":"box","text":"when companies disclose any relevant global sustainability-related standards adopted, the industry initiatives in","page_number":216,"box":{"x":68,"y":529,"width":799,"height":11}},{"id":"6eab4962-df60-40f0-a576-cfd632e233ce","block_type":"box","text":"which they par ticipate, any peer group benchmarking under taken, and any assurance processes to help investors","page_number":216,"box":{"x":68,"y":544,"width":810,"height":11}},{"id":"cd3f7e8b-2d2f-4bae-9f9d-3abd72f84217","block_type":"box","text":"understand their approach to sustainable and responsible business practices.","page_number":216,"box":{"x":69,"y":559,"width":556,"height":11}},{"id":"1beb8cb7-4736-42af-8981-d3a43082d797","block_type":"box","text":"10","page_number":216,"box":{"x":69,"y":603,"width":9,"height":5}},{"id":"c3520091-6eba-444c-bfb2-75e954fbae62","block_type":"box","text":"By material sustainability-related risks and oppor tunities, we mean the drivers of risk and financial value creation in","page_number":216,"box":{"x":84,"y":603,"width":822,"height":11}},{"id":"39288ad8-f06c-42b4-aafc-9e93ebd32757","block_type":"box","text":"a company’s business model that have an environmental or social dependency or impact. Examples of environmental","page_number":216,"box":{"x":69,"y":618,"width":835,"height":11}},{"id":"122a5830-ef97-4c89-bc30-b8e21fa3c564","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":216,"box":{"x":70,"y":633,"width":827,"height":12}},{"id":"4b7c6f25-02b0-4544-8c85-96091472ae81","block_type":"box","text":"issues include, but are not limited to, human capital management, impacts on the communities in which a company","page_number":216,"box":{"x":70,"y":649,"width":826,"height":11}},{"id":"bb371642-1534-40db-84eb-bf0d6123cca0","block_type":"box","text":"operates, customer loyalty, and relationships with regulators.","page_number":216,"box":{"x":69,"y":664,"width":433,"height":11}},{"id":"11232fbc-9096-4388-ad6e-a2f33eccee08","block_type":"box","text":"11","page_number":216,"box":{"x":69,"y":682,"width":9,"height":4}},{"id":"4bc0d1ff-45a1-4c53-bbec-113fde47ba87","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Repor ting Standards","page_number":216,"box":{"x":83,"y":681,"width":744,"height":11}},{"id":"797093b5-0c90-4f76-baa9-dfce3c0b82c1","block_type":"box","text":"(IFRS) Foundation. The standards build on the Task Force on Climate-related Financial Disclosures (TCFD) framework","page_number":216,"box":{"x":69,"y":696,"width":828,"height":11}},{"id":"e156f4e2-0b6a-4e39-8e3f-8b5a66326785","block_type":"box","text":"and the standards and metrics developed by the Sustainability Accounting Standards Board (SASB), which have both","page_number":216,"box":{"x":69,"y":711,"width":830,"height":12}},{"id":"36bd69a0-d83e-483d-87c2-f62b16d31d08","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":216,"box":{"x":69,"y":726,"width":809,"height":12}},{"id":"0645095b-9d26-48a7-a195-0fb68db285e1","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":216,"box":{"x":70,"y":742,"width":778,"height":11}},{"id":"5c2a3169-3fab-479d-b9b4-b5982d78b594","block_type":"box","text":"Disclosures.” Websites accessed in December 2025.","page_number":216,"box":{"x":70,"y":757,"width":380,"height":9}},{"id":"beec7588-2863-4d5b-9f49-3aa4f6d1f77e","block_type":"box","text":"BlackRock Investment Stewardship","page_number":216,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"234c41a6-402a-4a54-b9b5-4ff2487b5542","block_type":"box","text":"Global Principles | 10","page_number":216,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"68448995-1df9-44db-8543-b3c221b3b10a","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":216,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"cdaae36c-1dc9-4e6d-a473-e8c575fbbba2","block_type":"box","text":"CLIMATE AND NATURE-RELATED RISK","page_number":217,"box":{"x":351,"y":45,"width":277,"height":9}},{"id":"536642ee-b123-4eb9-8e2a-efb10edf11cb","block_type":"box","text":"Many companies are assessing how to navigate the low-carbon transition while delivering long-term financial","page_number":217,"box":{"x":102,"y":67,"width":769,"height":12}},{"id":"61eba3b4-06aa-4f82-91dd-d93f56b708af","block_type":"box","text":"value to investors. For companies facing material climate-related risks, we find it helpful when they publicly disclose,","page_number":217,"box":{"x":68,"y":82,"width":829,"height":12}},{"id":"f8eaac99-72f2-43b7-b825-6c65d1c27cf1","block_type":"box","text":"consistent with their business model and sector, how they intend to deliver long-term financial per formance through","page_number":217,"box":{"x":69,"y":98,"width":824,"height":11}},{"id":"c5bdc7df-6e6e-4f55-82b8-3bd4475b05ea","block_type":"box","text":"the low-carbon transition, including where available, their transition plan.","page_number":217,"box":{"x":68,"y":113,"width":514,"height":11}},{"id":"411fc884-7320-4880-9691-d1cc69d6be6f","block_type":"box","text":"12, 13","page_number":217,"box":{"x":584,"y":113,"width":26,"height":5}},{"id":"0fc4b7a0-5764-4f2e-ad6d-57c935a973f2","block_type":"box","text":"From company disclosures and","page_number":217,"box":{"x":617,"y":113,"width":218,"height":11}},{"id":"8106e6cc-f712-44d8-b691-cd924e67a4a9","block_type":"box","text":"engagement, we seek to understand the strategies companies have in place to manage material risks to, and","page_number":217,"box":{"x":69,"y":128,"width":782,"height":11}},{"id":"8637cea7-fe61-4a72-b147-6b392d6554d5","block_type":"box","text":"oppor tunities for, their long-term business model associated with a range of climate-related scenarios.","page_number":217,"box":{"x":69,"y":143,"width":729,"height":11}},{"id":"8dcf45e4-014f-4156-bbfd-6cb08ab80fca","block_type":"box","text":"Recognizing the value of these disclosures, cer tain markets such as the European Union mandate large","page_number":217,"box":{"x":102,"y":166,"width":740,"height":11}},{"id":"51ab3f17-774d-42b9-8f18-b8e7f017f66e","block_type":"box","text":"companies to disclose such climate-related financial information, while in other jurisdictions these disclosures are","page_number":217,"box":{"x":69,"y":181,"width":814,"height":11}},{"id":"d3cc5da4-6079-4410-aab9-55de564577ea","block_type":"box","text":"viewed as best practice in the market.","page_number":217,"box":{"x":68,"y":196,"width":271,"height":11}},{"id":"882ee415-8b70-4c57-b54d-e9a60340ddda","block_type":"box","text":"The ISSB standards provide one such framework that can assist investors in assessing company-specific","page_number":217,"box":{"x":101,"y":218,"width":749,"height":12}},{"id":"c624226f-c539-4021-9099-9ffa8626b6fa","block_type":"box","text":"climate-related risks and oppor tunities, and informing investment decisions. Such disclosures also provide investors","page_number":217,"box":{"x":69,"y":234,"width":831,"height":11}},{"id":"1f5e9125-0e94-4533-8b70-39f1cb2bf9d5","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":217,"box":{"x":68,"y":249,"width":809,"height":11}},{"id":"410d8a44-e190-4aaf-a4a9-6eca1d079132","block_type":"box","text":"managing their own carbon emissions or emissions intensities to the extent financially practicable.","page_number":217,"box":{"x":69,"y":264,"width":702,"height":11}},{"id":"d287a2a5-7110-4e06-adfa-8624eea900a9","block_type":"box","text":"The ISSB standards, for example, contemplate disclosures on how companies are setting shor t-, medium- and","page_number":217,"box":{"x":101,"y":286,"width":786,"height":12}},{"id":"3dc0cec1-cc67-4fc9-9792-9c5ce7633fad","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":217,"box":{"x":70,"y":302,"width":834,"height":11}},{"id":"5b763cd2-7b6a-4c6a-b99d-fb90a3c5a0ee","block_type":"box","text":"emissions (GHG) reductions and to demonstrate how their targets are consistent with the long-term financial","page_number":217,"box":{"x":69,"y":317,"width":773,"height":11}},{"id":"49234333-fd0e-4ae0-9254-df72e8138bb4","block_type":"box","text":"interests of their investors.","page_number":217,"box":{"x":70,"y":332,"width":190,"height":9}},{"id":"eaeb0a02-749e-4865-94ce-01cb286a3ded","block_type":"box","text":"While we recognize that regulators in some markets are moving to mandate cer tain disclosures, at this stage,","page_number":217,"box":{"x":101,"y":355,"width":784,"height":11}},{"id":"dafa11ac-39e4-49c6-b0a8-e64159f13706","block_type":"box","text":"we view scope 3 emissions differently from scopes 1 and 2, given methodological complexity, regulatory uncer tainty,","page_number":217,"box":{"x":68,"y":370,"width":832,"height":11}},{"id":"1e2af147-4dc1-4ff9-896f-6b09e739cca0","block_type":"box","text":"concerns about double-counting, and lack of direct control by companies. We welcome disclosures and commitments","page_number":217,"box":{"x":69,"y":385,"width":834,"height":11}},{"id":"f45dcd9d-3721-4669-8640-2adfb3d8e3e8","block_type":"box","text":"that companies choose to make regarding material scope 3 emissions and recognize that these are provided on a","page_number":217,"box":{"x":68,"y":400,"width":815,"height":11}},{"id":"22368c4e-0c68-4c99-ba02-25720132b8d1","block_type":"box","text":"good-faith basis as methodology develops.","page_number":217,"box":{"x":68,"y":415,"width":303,"height":11}},{"id":"f1d09693-16b6-4f08-b6b1-6792164438d8","block_type":"box","text":"In addition to climate-related risks and oppor tunities, for companies whose strategies, operations or supply","page_number":217,"box":{"x":102,"y":438,"width":766,"height":11}},{"id":"5cf7c5eb-b72e-4d6e-89b4-3581702b29b8","block_type":"box","text":"chains are materially reliant on natural capital, nature-related risks and oppor tunities may affect their ability to","page_number":217,"box":{"x":69,"y":453,"width":788,"height":11}},{"id":"e1c2b563-62ff-436f-bd24-5b2bb7f6469e","block_type":"box","text":"generate long-term financial returns.","page_number":217,"box":{"x":68,"y":468,"width":258,"height":11}},{"id":"d2197aea-c57c-42ee-b358-fc3bd28d086e","block_type":"box","text":"14","page_number":217,"box":{"x":328,"y":468,"width":9,"height":5}},{"id":"aead2600-7651-4191-bd50-9ce5a0cc7594","block_type":"box","text":"For these companies, we rely on disclosures to understand how their","page_number":217,"box":{"x":344,"y":468,"width":490,"height":11}},{"id":"3263ccef-2dde-4086-87c8-26601a56d3e9","block_type":"box","text":"strategies consider nature-related impacts and dependencies and to assess how the board oversees these risks.","page_number":217,"box":{"x":69,"y":483,"width":807,"height":11}},{"id":"a21a2157-9033-4992-87cd-7e5f98da8dd8","block_type":"box","text":"15","page_number":217,"box":{"x":878,"y":484,"width":9,"height":4}},{"id":"03e57673-7561-4b9c-80be-3b0f23855aad","block_type":"box","text":"COMPANIES’ IMPACT ON THEIR WORKFORCE, SUPPLY CHAINS, AND COMMUNITIES","page_number":217,"box":{"x":179,"y":513,"width":620,"height":11}},{"id":"d3ad38ae-036d-412b-bc21-ec6edfd44bc6","block_type":"box","text":"Companies determine their key stakeholders based on what is material to their business and long-term financial","page_number":217,"box":{"x":102,"y":536,"width":799,"height":11}},{"id":"8cafabc1-2cdf-48d5-8cfe-e1b42b7fbda7","block_type":"box","text":"per formance. For many companies, key stakeholders include employees, business supply chains, clients and","page_number":217,"box":{"x":70,"y":551,"width":778,"height":11}},{"id":"7663d200-946a-4be6-8e58-dc39edde55d8","block_type":"box","text":"consumers, regulators, and the communities in which they operate.","page_number":217,"box":{"x":69,"y":566,"width":479,"height":11}},{"id":"dceeae30-9314-471c-915d-dd16c9924641","block_type":"box","text":"In our experience, companies that invest in the relationships that are critical to their strategic objectives are","page_number":217,"box":{"x":102,"y":589,"width":770,"height":11}},{"id":"3f830a29-c8e5-44ad-9b28-e02c8c06ef56","block_type":"box","text":"more likely to deliver durable, long-term financial per formance. By contrast, we have found that poor relationships","page_number":217,"box":{"x":69,"y":604,"width":810,"height":11}},{"id":"755ace4b-ef1e-4c37-b2d2-5b7b27980aab","block_type":"box","text":"12","page_number":217,"box":{"x":69,"y":634,"width":9,"height":4}},{"id":"420a14bc-d26b-46bb-8ee0-ffe782827577","block_type":"box","text":"We have observed that more companies are developing such plans, and public policymakers in cer tain markets are","page_number":217,"box":{"x":83,"y":633,"width":823,"height":12}},{"id":"32796be1-bc46-4216-8bb8-b875abf6adbd","block_type":"box","text":"signaling their intentions to require them or already have requirements in place, such as Australia, Brazil, and the","page_number":217,"box":{"x":69,"y":649,"width":808,"height":11}},{"id":"8f1673f2-9bea-45d8-9f26-c3fc3a666605","block_type":"box","text":"European Union (please see the International Transition Plan Network for information). We view transition plans as a","page_number":217,"box":{"x":70,"y":663,"width":827,"height":11}},{"id":"b6b5f203-731d-4380-8b6a-a6469d2ef93e","block_type":"box","text":"method for a company to both internally assess and externally communicate its long-term strategy, ambition,","page_number":217,"box":{"x":69,"y":679,"width":774,"height":11}},{"id":"4fe8b8b5-95bc-41ce-9036-fc1f45b434ae","block_type":"box","text":"objectives, and actions to create financial value through the global transition towards a low-carbon economy. Across","page_number":217,"box":{"x":69,"y":694,"width":825,"height":11}},{"id":"103f2097-5cbf-4026-b8b3-cc5e756cb1f4","block_type":"box","text":"the landscape there remains divergence on the objectives of such plans and the details they should contain. While","page_number":217,"box":{"x":68,"y":709,"width":819,"height":11}},{"id":"4c1f674b-dfaf-4661-8c02-5e324b8e0e1d","block_type":"box","text":"transition plans can be helpful disclosure, BIS does not make the preparation and production of transition plans a","page_number":217,"box":{"x":68,"y":724,"width":813,"height":11}},{"id":"0ae1489a-8d61-456c-b038-72a99e63af5b","block_type":"box","text":"voting issue. BIS may engage companies that have chosen to publish a transition plan to understand their planned","page_number":217,"box":{"x":68,"y":739,"width":819,"height":11}},{"id":"9dc85b02-46d1-4992-be44-79b479cab937","block_type":"box","text":"actions and resource implications. Website accessed in December 2025.","page_number":217,"box":{"x":69,"y":754,"width":522,"height":11}},{"id":"8db86973-33b9-4a23-a030-faba518211d4","block_type":"box","text":"13","page_number":217,"box":{"x":69,"y":772,"width":9,"height":5}},{"id":"9e4741ec-3194-4995-8e64-9a13e7f041a6","block_type":"box","text":"For more information, please see our commentary “Climate-related risks and a low-carbon transition,” December","page_number":217,"box":{"x":84,"y":772,"width":804,"height":11}},{"id":"fcfcaa4a-fb7e-4489-994e-2a1f71332745","block_type":"box","text":"2025.","page_number":217,"box":{"x":69,"y":787,"width":42,"height":9}},{"id":"ef797923-dbce-4ba8-855f-cd0e709d0020","block_type":"box","text":"14","page_number":217,"box":{"x":69,"y":805,"width":9,"height":4}},{"id":"96456a75-e16d-4b78-9a61-38d7f61f579c","block_type":"box","text":"For more information, please see our commentary “Our approach to engagement on natural capital,” December","page_number":217,"box":{"x":84,"y":805,"width":796,"height":11}},{"id":"2126226e-e2c0-4743-a6fc-1b4d00f55316","block_type":"box","text":"2025.","page_number":217,"box":{"x":69,"y":820,"width":42,"height":9}},{"id":"2f7fcc96-4948-4dce-a6d9-41dcd7f5ad36","block_type":"box","text":"15","page_number":217,"box":{"x":69,"y":838,"width":9,"height":4}},{"id":"87dd5e7a-a28f-4082-8ce3-2d83912819a6","block_type":"box","text":"Given the growing awareness of the materiality of these issues for cer tain businesses, enhanced repor ting on a","page_number":217,"box":{"x":84,"y":837,"width":797,"height":12}},{"id":"d45d566e-65d3-4cb2-a9c3-1ffb1523e88c","block_type":"box","text":"company’s natural capital dependencies and impacts would aid investors’ understanding. The recommendations of","page_number":217,"box":{"x":69,"y":852,"width":820,"height":12}},{"id":"bfafd9fc-5b47-4ff1-9935-ca6a85655663","block_type":"box","text":"the Taskforce on Nature-related Financial Disclosures (TNFD) may prove useful to some companies. We recognize that","page_number":217,"box":{"x":68,"y":868,"width":842,"height":11}},{"id":"0e3ee734-98ac-4cb9-a419-5b9420322cad","block_type":"box","text":"some companies may repor t using different standards, which may be required by regulation, or one of a number of","page_number":217,"box":{"x":69,"y":883,"width":820,"height":11}},{"id":"7645ff0a-b0bf-42e9-b7fc-9b668daf79fb","block_type":"box","text":"other private sector standards. TNFD-aligned repor ting is not a voting issue. Website accessed in December 2025.","page_number":217,"box":{"x":69,"y":898,"width":817,"height":11}},{"id":"9194de77-f395-41f2-b208-5c2ab935131c","block_type":"box","text":"BlackRock Investment Stewardship","page_number":217,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"395fac70-8af7-4090-9783-9ccf4dd8740e","block_type":"box","text":"Global Principles | 11","page_number":217,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"943f69e1-0361-4e4e-a56f-2dc900234826","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":217,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"c38eb83c-dbb9-4faa-8a25-c5380c6786d6","block_type":"box","text":"may create adverse impacts that could expose companies to legal, regulatory, operational, and reputational risks.","page_number":218,"box":{"x":69,"y":45,"width":811,"height":11}},{"id":"42f2c412-2605-4d3c-933c-43044e7705eb","block_type":"box","text":"This is par ticularly relevant to a company’s workforce, which is central to long-term financial value creation.","page_number":218,"box":{"x":68,"y":60,"width":764,"height":11}},{"id":"42fb5284-1979-42a8-a405-8dd91df1927b","block_type":"box","text":"16","page_number":218,"box":{"x":834,"y":60,"width":9,"height":5}},{"id":"56426332-9900-40eb-8d12-617ff0baa537","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":218,"box":{"x":101,"y":82,"width":783,"height":12}},{"id":"70aa4006-488c-43e1-bc94-0ebf85fa9eb2","block_type":"box","text":"identified their key stakeholders and considered their interests in business decision-making. In addition to","page_number":218,"box":{"x":70,"y":98,"width":755,"height":11}},{"id":"825733a5-6c85-4ad3-8c66-64318dec007e","block_type":"box","text":"understanding broader stakeholder relationships, BIS finds it helpful when companies discuss how they consider the","page_number":218,"box":{"x":69,"y":113,"width":831,"height":11}},{"id":"09663631-b550-4d30-9fc5-24b2d30da57a","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":218,"box":{"x":69,"y":128,"width":809,"height":11}},{"id":"140b7519-c7a9-4ddd-b0e2-5419c84f51ba","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":218,"box":{"x":69,"y":143,"width":821,"height":11}},{"id":"cbd9087b-ea71-4b58-b369-8beb989b34db","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":218,"box":{"x":69,"y":158,"width":775,"height":11}},{"id":"7cfe22c5-7e69-4719-b088-336b444ae34a","block_type":"box","text":"company’s policies or practices, which are the responsibility of management and the board.","page_number":218,"box":{"x":69,"y":173,"width":653,"height":11}},{"id":"babd55ba-bd7e-46f3-8df6-bd53bddbab26","block_type":"box","text":"In addition, we find it helpful when companies disclose their approach to addressing material adverse impacts","page_number":218,"box":{"x":102,"y":196,"width":784,"height":11}},{"id":"b7bce14f-5a70-4c12-a55b-cd1042ba55dc","block_type":"box","text":"that could arise from their business practices and affect critical relationships with their stakeholders. We encourage","page_number":218,"box":{"x":68,"y":211,"width":829,"height":11}},{"id":"7f5b111a-b6e3-4234-9518-1cf24ec68dff","block_type":"box","text":"companies to implement, to the extent appropriate, monitoring processes (often referred to as due diligence) to","page_number":218,"box":{"x":69,"y":226,"width":797,"height":11}},{"id":"a8e8c298-09a7-4b8a-bdc1-2f665f24f592","block_type":"box","text":"identify and mitigate potential adverse impacts and grievance mechanisms to remediate any actual adverse material","page_number":218,"box":{"x":70,"y":241,"width":828,"height":11}},{"id":"728d2a47-d776-4dfe-9e11-92aa565857ad","block_type":"box","text":"impacts.","page_number":218,"box":{"x":70,"y":257,"width":58,"height":10}},{"id":"6a8ac02b-849c-4de6-b6e5-b53a5518681e","block_type":"box","text":"We look to boards to oversee management’s approach to addressing material risks related to key stakeholders","page_number":218,"box":{"x":101,"y":279,"width":794,"height":11}},{"id":"949145bc-6fd1-40fd-8435-815cafc7a566","block_type":"box","text":"and may convey concerns about board oversight in our voting on director elections or suppor ting a business relevant","page_number":218,"box":{"x":69,"y":294,"width":831,"height":11}},{"id":"69002e5a-ee20-4fba-bb5e-2ef535903b83","block_type":"box","text":"shareholder proposal when, in our assessment, the board is not acting in shareholders’ long-term financial interests.","page_number":218,"box":{"x":69,"y":309,"width":834,"height":11}},{"id":"de4ebb9e-abe8-41e4-a6fe-8da3f3124470","block_type":"box","text":"BLACKROCK’S OVERSIGHT OF ITS INVESTMENT STEWARDSHIP ACTIVITIES","page_number":218,"box":{"x":213,"y":340,"width":553,"height":8}},{"id":"f374532c-b9d4-4309-9b15-733f5ee1a9fa","block_type":"box","text":"BIS’ governance structure suppor ts oversight and accountability of stewardship-related activities on behalf of","page_number":218,"box":{"x":102,"y":362,"width":778,"height":11}},{"id":"ccdae21e-cdbe-45c6-9e02-8f18d5b82270","block_type":"box","text":"clients at the global and regional level.","page_number":218,"box":{"x":69,"y":377,"width":274,"height":12}},{"id":"b5bf920a-0e1f-48c6-9ef9-d478ca8b70a7","block_type":"box","text":"At the top of this governance structure, the risk-focused BIS Global Oversight Committee (the Committee)","page_number":218,"box":{"x":101,"y":400,"width":751,"height":11}},{"id":"04973f23-5725-404c-84d2-fee879a6d62c","block_type":"box","text":"suppor ts BIS’ regulatory responsibilities in relation to proxy voting, including adherence to policies and procedures as","page_number":218,"box":{"x":69,"y":415,"width":840,"height":11}},{"id":"3695858b-5326-48f5-aec8-f0fd7489213a","block_type":"box","text":"well as market-level stewardship requirements. The Committee reviews and approves amendments to the Global","page_number":218,"box":{"x":68,"y":430,"width":802,"height":11}},{"id":"226a90d1-14f8-4b51-8b09-dc965ec8c3c0","block_type":"box","text":"Principles and regional voting guidelines. The Committee also reviews periodic repor ts regarding the votes cast by","page_number":218,"box":{"x":69,"y":445,"width":813,"height":12}},{"id":"58d9436f-5e39-4def-8738-0e9e8c084ae0","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":218,"box":{"x":70,"y":460,"width":835,"height":12}},{"id":"7045aa74-3b2b-4499-a293-8ebfb466ab3d","block_type":"box","text":"considerations. The Committee is chaired by the Global Heads of the Investment Stewardship function and its","page_number":218,"box":{"x":69,"y":475,"width":783,"height":12}},{"id":"45dac3e2-ac60-4d51-896b-bf8f9f06a60e","block_type":"box","text":"members include senior BlackRock executives with legal, risk, and other experience relevant to team oversight who","page_number":218,"box":{"x":69,"y":491,"width":820,"height":11}},{"id":"54d33080-d44f-45cc-8d51-2147ea2df8c3","block_type":"box","text":"are independent from the investment stewardship function.","page_number":218,"box":{"x":69,"y":506,"width":421,"height":11}},{"id":"0766fa51-a4ae-47b0-9ce8-60f73b0a88cf","block_type":"box","text":"The Global Heads have primary oversight of BIS’ activities globally, including voting in accordance with the Global","page_number":218,"box":{"x":101,"y":528,"width":804,"height":12}},{"id":"619222e8-9bd4-477a-9e14-3569614c681c","block_type":"box","text":"Principles and regional voting guidelines. At the regional level, three regional Heads for the Americas, APAC, and","page_number":218,"box":{"x":69,"y":543,"width":798,"height":12}},{"id":"bffba18f-8ca7-4838-80a6-b8dad583b325","block_type":"box","text":"EMEA oversee BIS’ activities for their specific markets.","page_number":218,"box":{"x":70,"y":559,"width":389,"height":11}},{"id":"f86fb847-c68c-4732-934a-2015434fcfa2","block_type":"box","text":"VOTE EXECUTION","page_number":218,"box":{"x":424,"y":589,"width":129,"height":9}},{"id":"1a128ffe-69d9-460c-b3c5-faf0ff6cd980","block_type":"box","text":"BIS votes proxies on behalf of index equity funds and accounts when authorized by our clients. We have","page_number":218,"box":{"x":102,"y":612,"width":739,"height":11}},{"id":"42a4d746-d9ed-49f4-8ab8-239d488c4dbd","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":218,"box":{"x":70,"y":627,"width":822,"height":11}},{"id":"5aa7f7d6-7a5c-4d3e-a662-123409df8b01","block_type":"box","text":"from voting when logistical issues arise (see below). The BIS Benchmark Policies – and the vote decisions made","page_number":218,"box":{"x":68,"y":642,"width":801,"height":11}},{"id":"59eb2a31-f1cb-4dce-8fd2-c750969c5c52","block_type":"box","text":"consistent with those policies – reflect our reasonable and independent judgment and are made without regard to the","page_number":218,"box":{"x":69,"y":657,"width":838,"height":11}},{"id":"bdc03be7-3a86-4536-b4b0-676e3aa7f054","block_type":"box","text":"relationship between the issuer of the proxy (or any shareholder proponent or dissident shareholder) and the Fund,","page_number":218,"box":{"x":69,"y":672,"width":817,"height":11}},{"id":"8cea3b91-d822-4d79-9475-0944e1844cc8","block_type":"box","text":"the Fund’s affiliates (if any), BlackRock or BlackRock’s affiliates, or BlackRock employees (see “Conflicts","page_number":218,"box":{"x":68,"y":687,"width":751,"height":11}},{"id":"c05ff845-37a2-458b-8a3b-16379854b70a","block_type":"box","text":"management policies and procedures,” below).","page_number":218,"box":{"x":69,"y":703,"width":334,"height":11}},{"id":"3b510ba8-83f7-469c-890b-c94545f8b5c5","block_type":"box","text":"In cer tain markets, proxy voting involves logistical issues which can affect BIS’ ability to vote, as well as the cost","page_number":218,"box":{"x":102,"y":725,"width":806,"height":11}},{"id":"c6fbaf35-ddc3-434d-9041-6540ebb8131b","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":218,"box":{"x":69,"y":740,"width":801,"height":11}},{"id":"63d76166-e97f-4287-96e9-fcf251bb0261","block_type":"box","text":"shareholder meetings; 2) restrictions on a foreigner’s ability to exercise votes; 3) requirements to vote proxies in","page_number":218,"box":{"x":69,"y":755,"width":805,"height":11}},{"id":"46e41391-e73f-43a9-a598-b8835f9a537a","block_type":"box","text":"person; 4) “share-blocking” (requirements that investors who exercise their voting rights surrender the right to","page_number":218,"box":{"x":70,"y":771,"width":783,"height":11}},{"id":"055259b7-f1c7-4d12-8415-8b46f667a502","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":218,"box":{"x":69,"y":785,"width":811,"height":12}},{"id":"61012c4b-ea85-483e-8aff-949ab431f7b1","block_type":"box","text":"has occurred); 5) potential difficulties in translating the proxy; 6) regulatory constraints; and 7) requirements to","page_number":218,"box":{"x":69,"y":801,"width":795,"height":11}},{"id":"80f6a28b-a0ec-4dc0-b4cc-680aef349095","block_type":"box","text":"provide local agents with powers of attorney to facilitate voting instructions. We are not suppor tive of impediments to","page_number":218,"box":{"x":70,"y":816,"width":835,"height":11}},{"id":"b4e4c936-b5e3-4f57-a6f0-d009efb60c90","block_type":"box","text":"the exercise of voting rights such as share-blocking or overly burdensome administrative requirements.","page_number":218,"box":{"x":68,"y":831,"width":732,"height":11}},{"id":"9f68f5f0-91a1-4793-a4f4-32e4ca92cc33","block_type":"box","text":"16","page_number":218,"box":{"x":69,"y":860,"width":9,"height":5}},{"id":"b9e69d1d-3339-4cfd-acf9-09dc85f3e5c2","block_type":"box","text":"For more information, please see our commentary “Our approach to engagement on human capital management,”","page_number":218,"box":{"x":84,"y":860,"width":814,"height":11}},{"id":"409c4483-0d92-4595-b930-ba82963b5d74","block_type":"box","text":"December 2025.","page_number":218,"box":{"x":70,"y":875,"width":118,"height":9}},{"id":"a01d2b44-919c-4e91-954f-933204fe18cb","block_type":"box","text":"BlackRock Investment Stewardship","page_number":218,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"c7dc0a7e-b26f-412a-ae1c-f8db4f731f4f","block_type":"box","text":"Global Principles | 12","page_number":218,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"aafc4b4a-a317-4e2f-aac7-3037e2a20a18","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":218,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"668031cd-1ab5-4053-ad1b-ecceb66ed9dd","block_type":"box","text":"BIS votes proxies in these situations on a “best-effor ts” basis. In addition, BIS may determine that it is generally","page_number":219,"box":{"x":102,"y":45,"width":807,"height":11}},{"id":"0d828a35-3d85-4b79-bdd0-18ce87c56101","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":219,"box":{"x":70,"y":60,"width":830,"height":11}},{"id":"e50a84c6-4af5-4c31-bcbf-b1d4874dcbad","block_type":"box","text":"not limited to oppor tunity costs associated with share-blocking constraints) associated with exercising a vote are","page_number":219,"box":{"x":69,"y":75,"width":805,"height":11}},{"id":"220edc49-b357-4772-8953-1351d61e5529","block_type":"box","text":"expected to outweigh the benefit the client would derive by voting on the proposal.","page_number":219,"box":{"x":69,"y":90,"width":585,"height":11}},{"id":"75de1ecf-61ef-4315-9f80-3f7c4a539810","block_type":"box","text":"CONFLICTS MANAGEMENT POLICIES AND PROCEDURES","page_number":219,"box":{"x":281,"y":120,"width":416,"height":9}},{"id":"dea3fabc-65ef-468b-b622-e60a6897b671","block_type":"box","text":"BIS is a dedicated function whose responsibilities are separate from BlackRock’s sales, business par tnership or","page_number":219,"box":{"x":102,"y":143,"width":804,"height":11}},{"id":"d61c1e80-62ec-417f-8082-819f6d2b6a33","block_type":"box","text":"enterprise-level vendor management activities.","page_number":219,"box":{"x":69,"y":158,"width":329,"height":11}},{"id":"459f7ea0-4de0-4e81-afd1-1ab586846a84","block_type":"box","text":"BlackRock maintains policies and procedures that are designed to prevent undue influence on BIS’ proxy voting","page_number":219,"box":{"x":102,"y":181,"width":794,"height":11}},{"id":"0acbccf4-f3cb-4a45-b0e9-00180a1c7948","block_type":"box","text":"activity. Such influence might stem from any relationship between the investee company (or any shareholder","page_number":219,"box":{"x":69,"y":196,"width":771,"height":11}},{"id":"588d13ee-e016-43e2-8c73-72a15cccf053","block_type":"box","text":"proponent or dissident shareholder) and BlackRock, BlackRock’s affiliates, a Fund or a Fund’s affiliates, or","page_number":219,"box":{"x":70,"y":211,"width":763,"height":11}},{"id":"823965b2-a733-46b5-9061-9550bf866b51","block_type":"box","text":"BlackRock employees.","page_number":219,"box":{"x":70,"y":226,"width":157,"height":11}},{"id":"420f8ac1-f49a-4aa8-bd21-43e382a36508","block_type":"box","text":"For information on how BIS manages conflicts of interest, please see our disclosure.","page_number":219,"box":{"x":102,"y":249,"width":602,"height":11}},{"id":"ff8e9590-bc6f-486d-bbd7-51a317d17f74","block_type":"box","text":"SECURITIES LENDING","page_number":219,"box":{"x":409,"y":279,"width":159,"height":9}},{"id":"1fad2ce8-03fb-489e-8766-2201e8bd50d0","block_type":"box","text":"When authorized, BlackRock acts as a securities lending agent on behalf of its clients. Lending securities","page_number":219,"box":{"x":101,"y":302,"width":751,"height":11}},{"id":"6a83af3d-1208-46ba-9611-5938cb6facf9","block_type":"box","text":"enables BlackRock to increase the returns in clients’ por tfolios, and BlackRock’s lending agreements allow it to","page_number":219,"box":{"x":69,"y":317,"width":797,"height":11}},{"id":"ccdffcb4-535b-4678-8183-17807159b82c","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":219,"box":{"x":69,"y":332,"width":817,"height":11}},{"id":"d7d96a9c-86e6-470a-b22f-b6603c55aaa9","block_type":"box","text":"out on loan. Entitlements associated with the lent securities (dividends, coupons, etc.), while on loan are paid back","page_number":219,"box":{"x":69,"y":347,"width":823,"height":11}},{"id":"0b17b8ca-82af-4cc7-ae2e-6ca850867034","block_type":"box","text":"to the lender of the security as stipulated in industry standard legal agreements.","page_number":219,"box":{"x":68,"y":362,"width":575,"height":11}},{"id":"70ff987f-a93e-4667-b185-8f69b0bdf77f","block_type":"box","text":"With regard to the relationship between securities lending and proxy voting, BlackRock cannot vote shares on","page_number":219,"box":{"x":101,"y":385,"width":779,"height":11}},{"id":"22544695-8b75-440e-8639-fe0fed82ef01","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":219,"box":{"x":70,"y":400,"width":827,"height":11}},{"id":"e6f0b735-2417-4e2e-b83b-99434b38e70e","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":219,"box":{"x":70,"y":415,"width":832,"height":11}},{"id":"7eb08243-b063-43e2-a496-7be5293fc848","block_type":"box","text":"recall securities on loan as par t of BlackRock’s securities lending program in order to vote is based on an evaluation","page_number":219,"box":{"x":69,"y":430,"width":832,"height":11}},{"id":"a1357be8-77b7-431c-af7d-7994e21742ee","block_type":"box","text":"of various factors that include, but are not limited to, assessing potential securities lending revenue alongside the","page_number":219,"box":{"x":69,"y":445,"width":814,"height":12}},{"id":"daa36157-da54-4d69-9274-398435c717a0","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":219,"box":{"x":70,"y":460,"width":834,"height":12}},{"id":"6c8974ff-6f00-4cc8-865f-04b10d0b57d2","block_type":"box","text":"of recall consideration).","page_number":219,"box":{"x":69,"y":475,"width":166,"height":12}},{"id":"9787df63-451e-4475-8a8e-343625f5dcd0","block_type":"box","text":"17","page_number":219,"box":{"x":237,"y":476,"width":9,"height":4}},{"id":"ec5e5ce8-1251-42e9-a828-16dc116813e2","block_type":"box","text":"BIS works with colleagues in the Securities Lending and Risk and Quantitative Analysis","page_number":219,"box":{"x":252,"y":476,"width":617,"height":11}},{"id":"a46d6d2d-8521-47fa-b728-ba8250f79fd2","block_type":"box","text":"teams to evaluate the costs and benefits to clients of recalling shares on loan.","page_number":219,"box":{"x":68,"y":491,"width":563,"height":11}},{"id":"c7182e68-4f44-4ecf-9129-598a6e753b3c","block_type":"box","text":"In almost all instances, BlackRock anticipates that the potential long-term financial value to clients of voting","page_number":219,"box":{"x":102,"y":513,"width":770,"height":12}},{"id":"9bbc339f-5236-426f-90d4-d22086d79dc5","block_type":"box","text":"shares would be less than the potential revenue the loan may provide clients. However, in cer tain instances,","page_number":219,"box":{"x":69,"y":529,"width":774,"height":11}},{"id":"8fdafeac-6133-4e90-93f9-05432ba24bc6","block_type":"box","text":"BlackRock may determine, in our independent business judgment as a fiduciary, that the value of voting outweighs","page_number":219,"box":{"x":70,"y":543,"width":816,"height":12}},{"id":"9f268399-3b88-47b3-8659-28987c4dc277","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":219,"box":{"x":68,"y":559,"width":822,"height":11}},{"id":"92a113b6-3df3-4a5f-b6bf-de9f4ffb0ab8","block_type":"box","text":"impor tant to note that the majority of lendable assets in the market at any given time are not out on loan.","page_number":219,"box":{"x":70,"y":574,"width":752,"height":11}},{"id":"fa4b7cc6-1b68-47b6-8325-52b69ae0f511","block_type":"box","text":"Periodically, BlackRock reviews our process for determining whether to recall securities on loan in order to vote","page_number":219,"box":{"x":102,"y":596,"width":790,"height":12}},{"id":"b8a937d8-c507-4bf4-9f5d-7e402e3b8395","block_type":"box","text":"and may modify it as necessary.","page_number":219,"box":{"x":69,"y":612,"width":228,"height":11}},{"id":"76e8f19f-3009-4c6b-9017-c88ed3259cae","block_type":"box","text":"VOTING CHOICE","page_number":219,"box":{"x":430,"y":642,"width":117,"height":9}},{"id":"c8c89cdc-c92f-45b3-97e5-17351c80e89f","block_type":"box","text":"BlackRock offers Voting Choice, a program that provides eligible clients with more oppor tunities to par ticipate in","page_number":219,"box":{"x":102,"y":664,"width":800,"height":12}},{"id":"ebe95381-1b72-4ebf-8d0e-0bacd7989b3f","block_type":"box","text":"the proxy voting process, where legally and operationally viable.","page_number":219,"box":{"x":68,"y":680,"width":452,"height":11}},{"id":"f277cc94-5634-4b2b-8015-80432a317117","block_type":"box","text":"18","page_number":219,"box":{"x":522,"y":680,"width":9,"height":4}},{"id":"b8ba1bf1-e709-43cc-a768-f60478e55514","block_type":"box","text":"Voting Choice is currently available for eligible clients invested in cer tain institutional pooled funds in the U.S.,","page_number":219,"box":{"x":101,"y":702,"width":786,"height":12}},{"id":"2c7b06c3-11d8-44e4-bfc0-6830f907ec11","block_type":"box","text":"UK, Ireland, Canada, and Switzerland that utilize index equity investment strategies, as well as eligible clients in","page_number":219,"box":{"x":70,"y":718,"width":797,"height":11}},{"id":"6b192794-c374-4f9f-9775-39faab7a89cb","block_type":"box","text":"17","page_number":219,"box":{"x":69,"y":747,"width":8,"height":4}},{"id":"7080f73a-aea4-478b-b3ae-618ecebac962","block_type":"box","text":"Recalling securities on loan can be impacted by the timing of record dates. 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As a result, managers must weigh independent","page_number":219,"box":{"x":69,"y":792,"width":833,"height":11}},{"id":"6c11b6f5-951a-4fe7-a3c6-1bfbe17865e5","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":219,"box":{"x":69,"y":807,"width":821,"height":11}},{"id":"5dc28662-bbd5-4fe2-9fe1-dc4e2814f060","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":219,"box":{"x":69,"y":822,"width":823,"height":12}},{"id":"9a080ffa-a90e-4a23-9aa9-611346ea13c8","block_type":"box","text":"fund (thereby forgoing potential securities lending revenue for the fund’s shareholders) or leaving shares on loan to","page_number":219,"box":{"x":68,"y":837,"width":822,"height":12}},{"id":"362a8c49-bbd2-4ae7-8994-34d1de24bef6","block_type":"box","text":"potentially earn revenue for the fund (thereby forgoing the oppor tunity to vote).","page_number":219,"box":{"x":70,"y":852,"width":558,"height":12}},{"id":"741b048f-e875-4b02-93ab-f74b9bad3b1d","block_type":"box","text":"18","page_number":219,"box":{"x":69,"y":870,"width":9,"height":5}},{"id":"2aebf040-aa24-4752-b509-3bfeee9c2ac7","block_type":"box","text":"BlackRock will determine eligibility criteria under this program based upon, among other things, local market","page_number":219,"box":{"x":84,"y":870,"width":771,"height":11}},{"id":"5b908503-3153-4608-b7b4-0e94ae798811","block_type":"box","text":"regulation and practice, cost considerations, operational risk and/or complexity, and financial considerations,","page_number":219,"box":{"x":69,"y":885,"width":779,"height":11}},{"id":"b56c2ee6-dbe9-4f28-ab9d-b17c0ee3ba9a","block_type":"box","text":"including the decision to lend securities.","page_number":219,"box":{"x":70,"y":901,"width":285,"height":11}},{"id":"ab5472d5-8900-4ea5-a67c-c31fe1082fb2","block_type":"box","text":"BlackRock Investment Stewardship","page_number":219,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"cd318673-be90-4649-a501-dd3dccaa7bc7","block_type":"box","text":"Global Principles | 13","page_number":219,"box":{"x":758,"y":942,"width":151,"height":13}},{"id":"2af23e74-cbb7-4c78-98e6-ead6796ed0f5","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":219,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"14fdbc8c-6288-45f7-9cd8-b1bc6f7106b1","block_type":"box","text":"cer tain institutional pooled funds in the U.S., UK, Canada, and Switzerland that use systematic active equity","page_number":220,"box":{"x":69,"y":45,"width":772,"height":11}},{"id":"d5069339-c527-434e-89c2-b0a2968d2e69","block_type":"box","text":"(SAE) strategies. 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Net zero commitments are sourced from respective","page_number":224,"box":{"x":79,"y":850,"width":782,"height":11}},{"id":"95dd93ba-bded-4d91-8110-17316753e27b","block_type":"box","text":"company websites, as of January 2025.","page_number":224,"box":{"x":69,"y":865,"width":284,"height":11}},{"id":"90ed8c9d-98fc-4b4d-aea4-8da01e80df23","block_type":"box","text":"5","page_number":224,"box":{"x":69,"y":883,"width":4,"height":5}},{"id":"ea3c7133-e326-4ecd-bdce-2049fc5e0f9e","block_type":"box","text":"A list of approved funds is on BlackRock’s website here.","page_number":224,"box":{"x":78,"y":883,"width":401,"height":11}},{"id":"91300bb5-189e-4068-920f-c1c22f0b197c","block_type":"box","text":"6","page_number":224,"box":{"x":69,"y":901,"width":4,"height":4}},{"id":"31e151f6-be72-4555-ad2e-ee8947456813","block_type":"box","text":"United Nations Climate Change, “The Paris Agreement,” accessed in December 2025.","page_number":224,"box":{"x":79,"y":900,"width":614,"height":12}},{"id":"0aee9660-9c07-449c-81ff-b3b2d4541966","block_type":"box","text":"BlackRock Investment Stewardship","page_number":224,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"f31cd02c-e8a8-4868-894c-d03a65fbfb81","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 3","page_number":224,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"b0220f92-286b-43e2-bf17-a11a5180387a","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":224,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"ff4e32ca-f664-4354-8a48-6fd111d22b3a","block_type":"box","text":"par ticularly those representing the major sources of scopes 1, 2, and 3 greenhouse gas (GHG) emissions across","page_number":225,"box":{"x":70,"y":45,"width":806,"height":11}},{"id":"af751b71-0ff4-48e6-9092-f9ded1c64d5a","block_type":"box","text":"companies held by in-scope funds and accounts that have selected the Guidelines.","page_number":225,"box":{"x":69,"y":60,"width":590,"height":11}},{"id":"884075f4-569d-44d0-9c59-c20eb8de2813","block_type":"box","text":"7","page_number":225,"box":{"x":661,"y":60,"width":4,"height":5}},{"id":"cb561bc7-377f-4c33-8bc6-f543f9613ba7","block_type":"box","text":"For companies and matters not related to climate and transition risks, the dedicated team follows BIS’","page_number":225,"box":{"x":102,"y":82,"width":731,"height":11}},{"id":"08a5d109-6598-49c7-9ab6-bca944b8e7a6","block_type":"box","text":"Benchmark Policies.","page_number":225,"box":{"x":70,"y":98,"width":141,"height":9}},{"id":"bc94dd68-bb5a-4d47-aff0-6866eef54669","block_type":"box","text":"8","page_number":225,"box":{"x":213,"y":98,"width":4,"height":4}},{"id":"4a499feb-4da9-4ccf-bfab-87573e4fec22","block_type":"box","text":"In addition, for clients who do not direct BlackRock to prioritize climate risks and","page_number":225,"box":{"x":224,"y":98,"width":572,"height":11}},{"id":"bbf2b132-15ba-4a59-8cb4-76de50370203","block_type":"box","text":"decarbonization as an investment objective, BIS under takes our stewardship responsibilities in line with our","page_number":225,"box":{"x":69,"y":113,"width":769,"height":11}},{"id":"59899f99-010f-44dc-baa9-f6941fa510e8","block_type":"box","text":"Benchmark Policies, with a sole focus on advancing those clients’ long-term financial interests. 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In addition, cer tain disclosures related to a company’s plans for adapting their","page_number":226,"box":{"x":69,"y":724,"width":834,"height":11}},{"id":"41a71546-222a-4a0b-a103-6dcdb179e48c","block_type":"box","text":"business models through the low-carbon transition may require forward-looking statements.","page_number":226,"box":{"x":69,"y":739,"width":651,"height":11}},{"id":"ab3b62cc-4b30-45b4-88c4-431fb0a8811a","block_type":"box","text":"14","page_number":226,"box":{"x":69,"y":757,"width":9,"height":4}},{"id":"b7c1510a-6d9e-432c-a000-00afbc7e28b2","block_type":"box","text":"The ISSB is an independent standard-setting body within the International Financial Repor ting Standards","page_number":226,"box":{"x":83,"y":757,"width":744,"height":11}},{"id":"78268186-74d5-4701-a199-159edc8ed083","block_type":"box","text":"(IFRS) Foundation. 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Please refer to the IFRS website to learn more about the framework and standards S1","page_number":226,"box":{"x":69,"y":802,"width":809,"height":11}},{"id":"28e97dcc-97df-46ad-a5d2-b2acac58c05b","block_type":"box","text":"“General Requirements for Disclosure of Sustainability-related Financial Information” and S2 “Climate-related","page_number":226,"box":{"x":70,"y":817,"width":778,"height":11}},{"id":"b8ce94bb-e517-4fa4-abf9-bba64bdbe2ba","block_type":"box","text":"Disclosures.” Websites accessed in December 2025.","page_number":226,"box":{"x":70,"y":832,"width":380,"height":9}},{"id":"d3ae1700-0499-4c4d-92b6-1403e3fc9335","block_type":"box","text":"15","page_number":226,"box":{"x":69,"y":850,"width":9,"height":5}},{"id":"87c1999f-aba4-432a-a426-24c9d8885e58","block_type":"box","text":"A number of jurisdictions are consulting on adopting the standards issued to date or have already committed to","page_number":226,"box":{"x":83,"y":850,"width":795,"height":11}},{"id":"11f3e957-42b5-4552-90b9-1291f46aac81","block_type":"box","text":"doing so. BIS does not mandate any specific disclosure framework companies should use, and recognize that some","page_number":226,"box":{"x":69,"y":865,"width":826,"height":11}},{"id":"bb977814-815c-42ab-a167-1b4f03cead87","block_type":"box","text":"companies may repor t using different standards, some of which may be required by regulation. In such cases, we","page_number":226,"box":{"x":69,"y":880,"width":811,"height":11}},{"id":"1c42d1a3-64a1-4e33-8f11-064bcfc98074","block_type":"box","text":"ask that companies highlight the metrics that are industry- or company-specific. We also recognize that companies","page_number":226,"box":{"x":69,"y":895,"width":816,"height":12}},{"id":"9e5f212b-db34-4223-8560-cdccf7d2bb88","block_type":"box","text":"may be phasing in repor ting over several years. We do not prescribe timelines regarding when companies should","page_number":226,"box":{"x":69,"y":911,"width":803,"height":11}},{"id":"0a0d9e7c-226b-4011-a0ea-ca8ac82b155b","block_type":"box","text":"BlackRock Investment Stewardship","page_number":226,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"2c94b56c-43af-4256-9693-6e2f06a5d6c8","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 5","page_number":226,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"5c311ac3-af35-42bf-a96b-a14bb834cd7a","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":226,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"3d1be210-29aa-4cfb-874b-08df661cf37c","block_type":"box","text":"(3) scope 1 and scope 2, and most significant scope 3 GHG emissions","page_number":227,"box":{"x":69,"y":45,"width":513,"height":11}},{"id":"6b5a04cd-dcf5-4ff2-babd-b35c0a8b7a35","block_type":"box","text":"16, 17","page_number":227,"box":{"x":583,"y":45,"width":26,"height":5}},{"id":"4c2a4268-ee8e-4b5e-bd19-fbf9e7498877","block_type":"box","text":"In addition, the dedicated team looks to","page_number":227,"box":{"x":615,"y":45,"width":283,"height":10}},{"id":"00018446-0821-4f50-ae6c-d883dd64dcf3","block_type":"box","text":"companies to disclose their emissions reduction targets for scope 1 and 2 emissions, science-based where","page_number":227,"box":{"x":101,"y":60,"width":770,"height":11}},{"id":"1d2d92f3-bb08-4c60-addf-c52a0c1e0731","block_type":"box","text":"possible. The team welcomes disclosure of targets or indicative goals, where companies have set them, for","page_number":227,"box":{"x":102,"y":75,"width":768,"height":11}},{"id":"50d6b3c9-082d-488b-a40f-57494dca88ab","block_type":"box","text":"scope 3 emissions reductions. Scope 3 information, including how a company is working with its value chain to","page_number":227,"box":{"x":102,"y":90,"width":792,"height":11}},{"id":"d459c74e-1395-45cf-a0ee-9ba0d79b1f07","block_type":"box","text":"accelerate reductions in GHG intensity, provides useful insight to investors focused on investing in the low","page_number":227,"box":{"x":102,"y":105,"width":760,"height":11}},{"id":"0704550e-2685-4457-86a0-009bd49be8c0","block_type":"box","text":"carbon transition and understanding the impact of their investments on their decarbonization goals.","page_number":227,"box":{"x":101,"y":120,"width":709,"height":12}},{"id":"69a1c69e-cbac-449d-99e0-e5a81e8d51bc","block_type":"box","text":"18","page_number":227,"box":{"x":812,"y":121,"width":9,"height":4}},{"id":"36fdbd54-7d65-456d-bac8-ecc00d0361f9","block_type":"box","text":"However,","page_number":227,"box":{"x":827,"y":120,"width":62,"height":11}},{"id":"ad88152d-5383-4412-9425-5ef31f244a81","block_type":"box","text":"the team recognizes that companies have varying ability to influence the emissions across the different par ts of","page_number":227,"box":{"x":101,"y":135,"width":802,"height":12}},{"id":"d00084da-8c4d-4750-87b1-ed1ec62e32f5","block_type":"box","text":"their value chain and, therefore, it is helpful when disclosures explain the implications for the achievement of","page_number":227,"box":{"x":101,"y":150,"width":780,"height":11}},{"id":"3e294d05-be16-43ab-909d-25615100f889","block_type":"box","text":"their decarbonization targets. For some companies that play an impor tant role in the low-carbon transition, scope","page_number":227,"box":{"x":101,"y":166,"width":807,"height":11}},{"id":"8025a523-3d9b-46d4-88d9-f2685c67d9f5","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":227,"box":{"x":102,"y":181,"width":759,"height":11}},{"id":"c40f7059-d3ba-4eb0-af6e-ec98e0a51696","block_type":"box","text":"companies should be required to enforce emissions reduction targets outside of their control, where relevant, we","page_number":227,"box":{"x":101,"y":196,"width":808,"height":11}},{"id":"8a1b8afe-fadd-417c-942c-e2f66e30b160","block_type":"box","text":"look for disclosures on how the company approaches the low-carbon transition in these cases. This may include","page_number":227,"box":{"x":102,"y":211,"width":797,"height":11}},{"id":"7590e885-6190-4629-a74f-3a048d095142","block_type":"box","text":"plans and targets to grow businesses that contribute to real world decarbonization, forward-looking capital or","page_number":227,"box":{"x":102,"y":226,"width":777,"height":11}},{"id":"19971ada-4b9d-41bc-a560-39e493ab08e7","block_type":"box","text":"procurement allocation plans to net-zero aligned activities or suppliers, and strategies to mitigate material","page_number":227,"box":{"x":102,"y":241,"width":755,"height":11}},{"id":"6f685565-fcc1-4d9d-9281-a287f3eedf9e","block_type":"box","text":"transition risks.","page_number":227,"box":{"x":101,"y":257,"width":110,"height":8}},{"id":"2e73a1d5-6cc0-4ec2-8ad1-7ceec517276d","block_type":"box","text":"(4) where relevant, disclosures that describe the company’s exposure to climate-related physical risks—such as","page_number":227,"box":{"x":69,"y":277,"width":808,"height":11}},{"id":"d7f2b86f-2d52-48bf-879c-35be83dea5dc","block_type":"box","text":"acute risks from extreme weather events or chronic risks from long-term shifts in climate patterns—and how","page_number":227,"box":{"x":102,"y":292,"width":773,"height":11}},{"id":"87e4f7bb-0978-45eb-82d2-e8bcaf846eb5","block_type":"box","text":"these risks could reasonably be expected to affect the company’s operations, assets, or supply chains.","page_number":227,"box":{"x":101,"y":307,"width":739,"height":11}},{"id":"1c6b82ff-9666-4d73-b76f-1cfed841369b","block_type":"box","text":"Transition plans","page_number":227,"box":{"x":68,"y":337,"width":115,"height":11}},{"id":"49c138c3-878b-415f-895e-d31f724ca54c","block_type":"box","text":"Some companies have published transition plans outlining how they intend to implement their low-carbon","page_number":227,"box":{"x":102,"y":360,"width":748,"height":11}},{"id":"b37782f0-91e2-46c5-a8d2-e7230c7f6ed2","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":227,"box":{"x":68,"y":375,"width":831,"height":11}},{"id":"51d7c14d-c6a8-4de2-9c15-ec645fa3d3f5","block_type":"box","text":"its transition towards a lower-carbon economy, including actions such as reducing its greenhouse gas emissions”","page_number":227,"box":{"x":70,"y":390,"width":805,"height":11}},{"id":"13a8872e-3397-40ba-b307-b5d24cb0ca46","block_type":"box","text":"(see Appendix 1).","page_number":227,"box":{"x":69,"y":405,"width":122,"height":11}},{"id":"6d20b092-6c83-4bc7-a549-32b6e45b44a4","block_type":"box","text":"19","page_number":227,"box":{"x":193,"y":405,"width":9,"height":5}},{"id":"4b47c114-4c32-4ca7-a8a7-bdeb98825ef4","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":227,"box":{"x":101,"y":428,"width":800,"height":11}},{"id":"ab7c1c78-4f74-46b2-a5a9-329dbaf5aeec","block_type":"box","text":"transition plans.","page_number":227,"box":{"x":68,"y":443,"width":115,"height":11}},{"id":"0d4e0582-a906-4a1b-a4b3-3e4cbeea4872","block_type":"box","text":"20","page_number":227,"box":{"x":184,"y":443,"width":9,"height":5}},{"id":"abec8fc2-f27f-4653-aafc-b7998b0c927b","block_type":"box","text":"Recent guidance from the ISSB on disclosures about transition plans highlights the convergence of","page_number":227,"box":{"x":200,"y":443,"width":706,"height":11}},{"id":"d3a98f9c-7784-4b06-9f0f-ba1ae7c6b701","block_type":"box","text":"repor ting approaches.","page_number":227,"box":{"x":69,"y":458,"width":156,"height":11}},{"id":"2278acda-c4fd-43df-b4db-32f5378ab505","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":227,"box":{"x":101,"y":481,"width":762,"height":11}},{"id":"759813ce-9c5f-4a51-96fc-75725468104a","block_type":"box","text":"typically provide valuable insights that inform the dedicated team’s approach to engaging and voting on matters","page_number":227,"box":{"x":68,"y":496,"width":796,"height":11}},{"id":"341aafa0-4ddb-44ba-b0ae-d3a93b92df80","block_type":"box","text":"related to climate and transition risks on behalf of in-scope funds and accounts.","page_number":227,"box":{"x":69,"y":511,"width":570,"height":11}},{"id":"a9a5ff2e-129e-4eda-a07a-4a3df282a61d","block_type":"box","text":"make sustainability-related disclosures but appreciate it when companies produce them sufficiently in advance of","page_number":227,"box":{"x":69,"y":537,"width":810,"height":12}},{"id":"9b2c0e9b-046b-45ce-8a64-5c1373609f09","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":227,"box":{"x":68,"y":553,"width":822,"height":11}},{"id":"172869e6-27c7-4c93-ab69-5dac806dfa54","block_type":"box","text":"informed voting decisions.","page_number":227,"box":{"x":70,"y":568,"width":184,"height":11}},{"id":"2c3c6a69-267f-41cd-9aaa-a8e5b054d679","block_type":"box","text":"16","page_number":227,"box":{"x":69,"y":586,"width":9,"height":4}},{"id":"51543b93-e6cd-4a1d-ba50-8793e686da4b","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":227,"box":{"x":84,"y":585,"width":825,"height":12}},{"id":"adc99abd-91aa-48bd-b3e1-592539c62396","block_type":"box","text":"paper: FTSE Russel, “Scope for improvement: Solving the Scope 3 conundrum,” January 2024, accessed in","page_number":227,"box":{"x":70,"y":600,"width":768,"height":12}},{"id":"4619bc58-301f-4bcd-b45b-a07d8f1dbeae","block_type":"box","text":"December 2025.","page_number":227,"box":{"x":70,"y":616,"width":118,"height":9}},{"id":"44445bd1-c4e5-4be3-9009-8114d1dc0ed1","block_type":"box","text":"17","page_number":227,"box":{"x":69,"y":634,"width":8,"height":4}},{"id":"fe4980b6-4395-44dc-9f3c-ec73eb2f70f5","block_type":"box","text":"Under this policy, the dedicated team looks for GHG emissions disclosures to be aligned with the Greenhouse Gas","page_number":227,"box":{"x":84,"y":633,"width":815,"height":12}},{"id":"d02c28d8-67de-4dd1-b702-11418d9db249","block_type":"box","text":"Protocol (GHG Protocol). The Protocol Standards and Guidance are currently being updated to ensure they continue to","page_number":227,"box":{"x":69,"y":648,"width":838,"height":12}},{"id":"df14b4e8-8e46-43fe-a009-6dbbd1d25bfc","block_type":"box","text":"provide “a rigorous and credible accounting foundation for businesses to measure, plan and track progress toward","page_number":227,"box":{"x":70,"y":663,"width":816,"height":12}},{"id":"4a0e1f91-2321-42e0-aba9-008f08461b04","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":227,"box":{"x":69,"y":679,"width":784,"height":11}},{"id":"dc5b2548-c34b-4ce0-b021-d53283bc51af","block_type":"box","text":"18","page_number":227,"box":{"x":69,"y":697,"width":9,"height":4}},{"id":"14f7cb8a-66f1-433f-9615-8ffe5ee222ff","block_type":"box","text":"The dedicated team does not believe the purpose of scope 3 disclosure requirements should be to push publicly","page_number":227,"box":{"x":83,"y":696,"width":804,"height":11}},{"id":"7050576c-be7f-4ce4-83fd-5ca3a3debfee","block_type":"box","text":"traded companies into the role of enforcing emission reduction targets outside of their control. Given methodological","page_number":227,"box":{"x":68,"y":711,"width":832,"height":12}},{"id":"6140c24f-105f-4890-8c59-a51066ae7774","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":227,"box":{"x":69,"y":726,"width":832,"height":12}},{"id":"c097fdd1-d6e1-4c35-af01-4c05503895a7","block_type":"box","text":"useful when companies focus their disclosures on those of the fifteen scope 3 GHG Protocol categories that are","page_number":227,"box":{"x":69,"y":742,"width":800,"height":11}},{"id":"bc372641-8991-4757-94d9-bffd26cbbde7","block_type":"box","text":"material to their business models.","page_number":227,"box":{"x":69,"y":757,"width":243,"height":9}},{"id":"7242f6ca-790d-4df9-a312-f2ef27588368","block_type":"box","text":"19","page_number":227,"box":{"x":69,"y":775,"width":9,"height":4}},{"id":"38a96024-610b-444c-9a56-badabe87eff2","block_type":"box","text":"International Financial Repor ting Standards, “IFRS S2: Climate-related Disclosures,” June 2023, accessed in","page_number":227,"box":{"x":84,"y":774,"width":777,"height":12}},{"id":"f5848965-f340-40f4-881a-f3752166360f","block_type":"box","text":"December 2025.","page_number":227,"box":{"x":70,"y":790,"width":118,"height":8}},{"id":"31d649a5-9e89-4652-8f7a-2ad820302e46","block_type":"box","text":"20","page_number":227,"box":{"x":69,"y":807,"width":9,"height":5}},{"id":"d5cd4bb6-f169-4675-a2ed-5d5cad48136f","block_type":"box","text":"More companies are developing such plans, and public policymakers in cer tain markets are signaling their","page_number":227,"box":{"x":84,"y":807,"width":758,"height":11}},{"id":"3267421d-353e-4b58-9b8c-e580c87c211b","block_type":"box","text":"intentions to require them or already have requirements in place, such as Australia, Brazil, and the European Union","page_number":227,"box":{"x":70,"y":822,"width":820,"height":11}},{"id":"ffec7687-b344-4d0a-9719-81041d92e768","block_type":"box","text":"(please see the International Transition Plan Network for information). BlackRock views transition plans as a method","page_number":227,"box":{"x":69,"y":837,"width":829,"height":11}},{"id":"34065f08-af3c-41bd-965f-a5c5b36a3653","block_type":"box","text":"for a company to both internally assess and externally communicate its long-term strategy, ambition, objectives, and","page_number":227,"box":{"x":68,"y":852,"width":829,"height":12}},{"id":"8499c0e7-da5b-4aae-8760-9dccdd87ed65","block_type":"box","text":"actions to create financial value through the global transition towards a low-carbon economy. Across the landscape","page_number":227,"box":{"x":69,"y":868,"width":818,"height":11}},{"id":"6ff9d30f-f7e9-4d6f-af41-0e7c4c395221","block_type":"box","text":"there remains divergence on the objectives of such plans and the details they should contain. 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Under the Guidelines, the team may suppor t","page_number":229,"box":{"x":69,"y":423,"width":754,"height":11}},{"id":"50416c4f-bbdf-4112-8fa3-f2aed0e1b03f","block_type":"box","text":"shareholder proposals that, for example, ask a company to:","page_number":229,"box":{"x":69,"y":438,"width":425,"height":11}},{"id":"cce9448d-44b9-455f-a69b-af3429526fd0","block_type":"box","text":"•","page_number":229,"box":{"x":69,"y":461,"width":6,"height":4}},{"id":"e7b2d669-4da6-46ce-a40f-084af7430e11","block_type":"box","text":"Publish a business plan, and related disclosures, consistent with the ambition to limit average global","page_number":229,"box":{"x":102,"y":458,"width":719,"height":11}},{"id":"b55b317b-c8e7-4cc8-a926-4a9a70d2e0f5","block_type":"box","text":"temperature rise to no more than 1.5°C above pre-industrial levels","page_number":229,"box":{"x":101,"y":473,"width":474,"height":11}},{"id":"33555c98-35c4-4620-bdd5-5e6b73cbf608","block_type":"box","text":"•","page_number":229,"box":{"x":69,"y":496,"width":6,"height":5}},{"id":"d09c15fe-1a31-4612-bdc8-0c69a31079cf","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":229,"box":{"x":101,"y":493,"width":807,"height":11}},{"id":"bf0ba5d5-d056-4db6-9865-4dffa974bee2","block_type":"box","text":"goal of the company achieving net zero GHG emissions by 2050","page_number":229,"box":{"x":101,"y":508,"width":457,"height":12}},{"id":"f8411cde-0d61-412e-92c1-c82d688424df","block_type":"box","text":"•","page_number":229,"box":{"x":69,"y":531,"width":6,"height":5}},{"id":"0b4d9cc9-3324-4893-a55c-6859fe3b1dea","block_type":"box","text":"Disclose the categories of scope 3 GHG emissions most significant to a company’s business model","page_number":229,"box":{"x":102,"y":528,"width":712,"height":12}},{"id":"268fc782-c045-4da7-9389-d6c47df76601","block_type":"box","text":"•","page_number":229,"box":{"x":69,"y":551,"width":6,"height":5}},{"id":"af726342-7dc0-4886-91b1-7e18e3a8995d","block_type":"box","text":"Improve voluntary disclosures on the alignment of a company’s climate-related corporate political activities with","page_number":229,"box":{"x":102,"y":549,"width":794,"height":11}},{"id":"23516cb6-bb66-44fd-bc51-a3661460ca2f","block_type":"box","text":"its strategic policy positions, where existing disclosure is insufficient","page_number":229,"box":{"x":102,"y":564,"width":489,"height":11}},{"id":"243faaad-ef43-4568-b50f-12f64ea3b144","block_type":"box","text":"25","page_number":229,"box":{"x":592,"y":564,"width":9,"height":5}},{"id":"4c4fc665-09b1-4953-b276-6e29c00920a1","block_type":"box","text":"The dedicated team does not suppor t shareholder proposals that seek to constrain board or management","page_number":229,"box":{"x":101,"y":587,"width":758,"height":11}},{"id":"598c8cf0-423f-44e2-85b8-3277b4b3001e","block_type":"box","text":"decision-making or direct specific business or strategic decisions.","page_number":229,"box":{"x":69,"y":601,"width":468,"height":12}},{"id":"050c5c0d-692d-4efc-a48f-e3503d7b2d4c","block_type":"box","text":"RELATED MATTERS","page_number":229,"box":{"x":419,"y":632,"width":140,"height":9}},{"id":"e43f6443-bc08-46ed-8d02-7e91249d8a11","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":229,"box":{"x":101,"y":655,"width":771,"height":11}},{"id":"b8456d2b-a78c-490c-aa9a-d570552a1128","block_type":"box","text":"matters relevant to the transition to a low-carbon economy. Under these Guidelines, the dedicated team engages,","page_number":229,"box":{"x":69,"y":670,"width":808,"height":11}},{"id":"f7260d41-5415-46f3-8d4d-c84a025772ae","block_type":"box","text":"where appropriate, to enhance its understanding of a company’s approach. 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Some companies, in light of their long-term strategy, may decide to include relevant","page_number":229,"box":{"x":69,"y":768,"width":837,"height":11}},{"id":"8d0c45af-6825-47c6-8082-7faf9c22825b","block_type":"box","text":"GHG emissions reduction targets or low-carbon transition-related metrics in their incentive plans. In such cases, the","page_number":229,"box":{"x":69,"y":783,"width":826,"height":11}},{"id":"da2d3a2d-af8e-407d-aa13-76a09621a0ac","block_type":"box","text":"dedicated team would engage to understand the alignment between those metrics and the company’s stated climate","page_number":229,"box":{"x":69,"y":798,"width":834,"height":11}},{"id":"d11d62a3-9fcb-45db-b0d6-7559c1808e2a","block_type":"box","text":"24","page_number":229,"box":{"x":69,"y":828,"width":9,"height":4}},{"id":"c6e731d6-e46e-4036-9fa6-4ec84837abaf","block_type":"box","text":"While the dedicated team may escalate voting by not suppor ting additional management proposals, principally","page_number":229,"box":{"x":83,"y":827,"width":787,"height":12}},{"id":"a93fc4cb-f038-43a5-b7c4-62fb23ba9ba9","block_type":"box","text":"director elections, the team does not consider filing shareholder proposals, preannouncing voting intentions or using","page_number":229,"box":{"x":69,"y":842,"width":832,"height":12}},{"id":"e4e1eb2a-a9b0-4e55-a6cf-d24f505b1a48","block_type":"box","text":"the media to amplify concerns as appropriate courses of action. The dedicated team will continue to take a","page_number":229,"box":{"x":68,"y":857,"width":765,"height":12}},{"id":"52d8e4a1-d831-47c1-9d38-8cada496534f","block_type":"box","text":"constructive, long-term focused approach, to engagement and voting on behalf of clients under these Guidelines.","page_number":229,"box":{"x":69,"y":873,"width":805,"height":11}},{"id":"194881b0-8434-4cbd-8958-872526bfc21b","block_type":"box","text":"25","page_number":229,"box":{"x":69,"y":891,"width":9,"height":4}},{"id":"369cf4df-78ea-4d2a-aad3-d02e7a22b09e","block_type":"box","text":"Corporate political activities may include lobbying as defined by local regulations, policy engagement (including","page_number":229,"box":{"x":84,"y":890,"width":787,"height":12}},{"id":"82988dc0-38b6-4f4e-ab96-6b237d8e37a8","block_type":"box","text":"trade association memberships), and corporate political contributions.","page_number":229,"box":{"x":68,"y":906,"width":500,"height":10}},{"id":"e7761944-11d2-4e0c-97b5-04d96c3a9eac","block_type":"box","text":"BlackRock Investment Stewardship","page_number":229,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"7fe52774-40a4-49c7-8c88-3460c7cef075","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 8","page_number":229,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"dc43a379-a3c6-4a2b-916e-72dfa6108892","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":229,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"84fc9427-0c34-4973-9788-1e14f72db853","block_type":"box","text":"strategy. Clear disclosure also helps investors assess whether pay structures are consistent with long-term climate","page_number":230,"box":{"x":69,"y":45,"width":821,"height":11}},{"id":"63d74085-9930-4db0-9e39-2ad750d2e268","block_type":"box","text":"strategy and risk management.","page_number":230,"box":{"x":69,"y":60,"width":219,"height":11}},{"id":"5f0bcffc-30a6-491f-b0a0-e1234a50b19e","block_type":"box","text":"Auditors and audit-related issues","page_number":230,"box":{"x":68,"y":90,"width":240,"height":9}},{"id":"5fe271aa-8be6-4b69-8b77-dc750c9cd198","block_type":"box","text":"For companies with material climate or transition risks or oppor tunities in their business models, the dedicated","page_number":230,"box":{"x":102,"y":113,"width":793,"height":11}},{"id":"b1c94ccf-029d-4b25-b355-bae6f271da8a","block_type":"box","text":"team is interested in understanding whether the company considers and, if relevant, quantifies, and accounts for","page_number":230,"box":{"x":68,"y":128,"width":807,"height":11}},{"id":"3353cbe9-08f6-4d75-9c26-2caa9f09cc84","block_type":"box","text":"material climate-related risks in its financial statements, including if the company explains such risks within the","page_number":230,"box":{"x":69,"y":143,"width":794,"height":11}},{"id":"7a012228-374b-4c62-8125-207c0b0c5fb0","block_type":"box","text":"context of its audit repor t. The team notes that assurance of corporate disclosures related to climate risk and the","page_number":230,"box":{"x":69,"y":158,"width":812,"height":11}},{"id":"f04a2256-2828-42b1-a079-fb394c376d89","block_type":"box","text":"transition to a low-carbon economy is still nascent.","page_number":230,"box":{"x":68,"y":173,"width":361,"height":11}},{"id":"c0ed739e-054e-4792-8bd2-9d0574667c01","block_type":"box","text":"Mergers, acquisitions, asset sales, and other special situations","page_number":230,"box":{"x":69,"y":203,"width":463,"height":11}},{"id":"e40f1357-1513-4134-8d84-2ff7b04e3137","block_type":"box","text":"Special situations will be considered on their financial merits, but the dedicated team may engage on climate","page_number":230,"box":{"x":102,"y":226,"width":783,"height":11}},{"id":"1e37fe93-e4b7-4499-89cf-1397e26e5e06","block_type":"box","text":"related factors under these Guidelines where a transaction may significantly alter a company’s climate strategy or a","page_number":230,"box":{"x":69,"y":241,"width":824,"height":11}},{"id":"031e331a-17ee-4856-a21e-8333cb8557ff","block_type":"box","text":"shareholder activist has proposed governance, strategic or operational changes that may impact its climate strategy.","page_number":230,"box":{"x":69,"y":257,"width":831,"height":11}},{"id":"dea2a82d-67d8-446c-8f24-cc082116eaaf","block_type":"box","text":"The dedicated team does not promote changes in corporate control or engage in shareholder activism.","page_number":230,"box":{"x":68,"y":272,"width":731,"height":11}},{"id":"53bc1d52-a118-46cf-bd37-af120152e966","block_type":"box","text":"Other business relevant sustainability-related risks and opportunities","page_number":230,"box":{"x":69,"y":302,"width":503,"height":11}},{"id":"da0f9513-081d-468d-ac5c-9caf273d907f","block_type":"box","text":"Climate risk and the transition to a low-carbon economy are interconnected with a number of other material","page_number":230,"box":{"x":102,"y":324,"width":762,"height":11}},{"id":"37a8faf4-5367-40c5-8f9b-5a44c28f1221","block_type":"box","text":"sustainability-related risks and oppor tunities that may be relevant to a company’s business model and long-term","page_number":230,"box":{"x":69,"y":340,"width":802,"height":11}},{"id":"b1925b33-c9bb-4730-be03-02a4df5e89ef","block_type":"box","text":"financial per formance. These include a company’s impacts or dependencies on natural capital and key","page_number":230,"box":{"x":68,"y":355,"width":734,"height":11}},{"id":"9e1b5fe4-00ba-4570-8edd-a8add61bce6b","block_type":"box","text":"stakeholders.","page_number":230,"box":{"x":69,"y":370,"width":95,"height":9}},{"id":"d40b2966-481f-45d5-8812-3d92788c8a4b","block_type":"box","text":"26","page_number":230,"box":{"x":166,"y":370,"width":9,"height":5}},{"id":"8976d541-65f6-4911-b2a4-b2b8e3182598","block_type":"box","text":"In the context of these Guidelines, the dedicated team may engage companies to better understand","page_number":230,"box":{"x":182,"y":370,"width":710,"height":11}},{"id":"414b23c3-998a-4af2-8caf-36bc0a256d6d","block_type":"box","text":"how they are managing the impact on people (e.g., employees, suppliers, customers and communities) of any","page_number":230,"box":{"x":69,"y":385,"width":783,"height":11}},{"id":"2bc78929-f70c-4cb0-97ad-225fcadf2157","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":230,"box":{"x":69,"y":400,"width":832,"height":11}},{"id":"d0431e99-1d1b-4349-99cd-0a0a2807c6a2","block_type":"box","text":"team may engage companies that face risks and oppor tunities related to land use and deforestation, access to fresh","page_number":230,"box":{"x":68,"y":415,"width":838,"height":11}},{"id":"cfee1fea-159e-43f9-820d-88eddc018ae5","block_type":"box","text":"water, or the ability to secure scarce resources critical to the transition to a low-carbon economy.","page_number":230,"box":{"x":68,"y":430,"width":690,"height":11}},{"id":"c0266c69-a821-41c1-bdea-3d374cafa73f","block_type":"box","text":"26","page_number":230,"box":{"x":69,"y":475,"width":9,"height":4}},{"id":"07efaed3-1ab7-41b0-89a6-10211b0085cb","block_type":"box","text":"Engagement with companies on these issues is informed by BIS’ commentaries on natural capital, human capital","page_number":230,"box":{"x":84,"y":474,"width":807,"height":12}},{"id":"71625b5f-f23c-4865-8eda-fa8d05f03eb6","block_type":"box","text":"management, and corporate human rights risks, December 2025.","page_number":230,"box":{"x":69,"y":490,"width":468,"height":11}},{"id":"bb4cd6bb-3597-42e0-84d2-8bb06174b11f","block_type":"box","text":"BlackRock Investment Stewardship","page_number":230,"box":{"x":69,"y":943,"width":260,"height":11}},{"id":"9d38f26b-8db7-43b7-81b7-dbee2ea665de","block_type":"box","text":"Climate and Decarbonization Stewardship Guidelines | 9","page_number":230,"box":{"x":509,"y":942,"width":400,"height":13}},{"id":"ea409947-1476-4994-8019-940b712b6778","block_type":"box","text":"BNM1026U-6032633-19203483","page_number":230,"box":{"x":647,"y":981,"width":171,"height":7}},{"id":"09e90b3f-f10f-4475-999f-637d99506dd4","block_type":"box","text":"Appendix 1","page_number":231,"box":{"x":68,"y":45,"width":82,"height":11}},{"id":"938fa6f0-517f-46b4-9b0c-be0c9d77f3b4","block_type":"box","text":"Terminology","page_number":231,"box":{"x":68,"y":75,"width":87,"height":11}},{"id":"8f86fbe8-fa8d-44ee-a5c7-a5b343aa16ac","block_type":"box","text":"We understand the key concepts referred to within these Guidelines as follows:","page_number":231,"box":{"x":101,"y":98,"width":565,"height":11}},{"id":"2a09a483-f205-4999-b93a-463706ffd8c0","block_type":"box","text":"Climate risk:","page_number":231,"box":{"x":101,"y":120,"width":92,"height":9}},{"id":"67a0f50e-dfb1-4eb8-ad81-24d3a67f5b62","block_type":"box","text":"Includes physical risk, the increased risk to companies’ assets and activities caused by the direct","page_number":231,"box":{"x":200,"y":120,"width":698,"height":11}},{"id":"c5ef5890-430c-46c7-aa3c-2dbccd8b1478","block_type":"box","text":"impact of changing weather patterns and natural catastrophes, and transition risk, the impact of the transition to a","page_number":231,"box":{"x":70,"y":135,"width":818,"height":12}},{"id":"def18e47-f820-4ede-b4c7-81e79ce81493","block_type":"box","text":"low-carbon economy on a company’s long-term profitability.","page_number":231,"box":{"x":70,"y":150,"width":416,"height":12}},{"id":"3b03c6c2-aaa7-4ae2-bdaa-657e29035f6d","block_type":"box","text":"Transition to a low-carbon economy (“low-carbon transition”):","page_number":231,"box":{"x":101,"y":173,"width":449,"height":11}},{"id":"3573cb87-1c35-44f5-9293-0e20258e97cb","block_type":"box","text":"The global economic shift toward lower","page_number":231,"box":{"x":556,"y":173,"width":278,"height":11}},{"id":"8646e747-4571-4426-ba56-9aeabc47f12b","block_type":"box","text":"emissions across many sectors and business models. The economic transformation is being driven by changes in","page_number":231,"box":{"x":69,"y":188,"width":811,"height":12}},{"id":"47dfe88f-c9d9-4511-87de-dff97875a301","block_type":"box","text":"government policy, technology, and consumer and investor preferences, as well as the physical effects of climate","page_number":231,"box":{"x":68,"y":203,"width":807,"height":12}},{"id":"835122fd-b851-45d5-8c74-e02261880401","block_type":"box","text":"change (e.g., extreme weather), and can potentially have a material impact on clients’ investments and por tfolios.","page_number":231,"box":{"x":69,"y":218,"width":812,"height":12}},{"id":"122179c6-414f-4e02-824f-97425da7015d","block_type":"box","text":"Decarbonization:","page_number":231,"box":{"x":102,"y":241,"width":120,"height":9}},{"id":"63e21e77-703d-478b-8a7b-dd079556a6a5","block_type":"box","text":"the process of reducing or eliminating emissions of carbon dioxide (CO2) from human activity","page_number":231,"box":{"x":228,"y":241,"width":664,"height":11}},{"id":"a8610fc0-8cd7-4612-9a77-17301b47df40","block_type":"box","text":"and removing carbon currently in the atmosphere. This can be carried out by countries, companies and even","page_number":231,"box":{"x":69,"y":257,"width":771,"height":11}},{"id":"53fbb795-6b56-42f3-bbd6-9241f8f027e8","block_type":"box","text":"individual consumers. 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